BILL ANALYSIS



H.B. 1824
By: Pickett
3-27-95
Committee Report (Amended)


BACKGROUND
The greater Canutillo service area is an area in northwest El Paso
encompassing approximately 14,207 acres in the upper valley area of
El Paso.  The area includes the unincorporated community of
Canutillo, the La Tuna Correctional Facility, the Village of Vinton
and the Town of Anthony, Texas.  The greater Canutillo service area
excludes the area of the El Paso County Water Control and
Improvement District-Westway (Westway.)  This area includes
approximately 9,034 people, many of whom are without water and
wastewater service.  The City of El Paso (El Paso), through its El
Paso Water Utilities Public Service Board (PSB) has identified
alternatives available for providing water and wastewater service
to this area to meet demands up to the year 2015.  It is
anticipated that the provision of water and sewer service to people
without such service living in colonia areas would be provided in
at least two phases with preliminary cost estimates of $10,996,313
for water facilities and $12,000,000 for wastewater facilities with
25% of the financing from the Texas Water Development Board (TWDB)
and 75% financing from the Corps of Engineers.  The first phase
would provide water and sewer service to the community of
Canutillo.  In order to be able to serve in this area, El Paso,
through its PSB, must be allowed to charge rates for water and
sewer service in the greater Canutillo service area which exceed
similar rates to is municipal customers so that El Paso could fully
recover the cost of serving these customers. These costs would
include the debt incurred by El Paso on behalf of the Canutillo
customers for the necessary improvements to provide water and sewer
services to the greater Canutillo service area.


PURPOSE
As proposed, H.B. 1824 would permit El Paso, through its PSB, to
charge rates for water and sewer service in the greater Canutillo
service area which exceed similar rates charged to its municipal
customers, which would allow water and sewer service to be provided
at cost to residents of the greater Canutillo service area without
water and sewer service.


RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS

     SECTION 1. (a) Allows El Paso to charge residents of the
greater Canutillo service area a higher rate for service than rates
charged to residents of the municipality.  The difference in rates
will be necessary to fully recover the cost of service to the area.

     (b) This indicates what the PSB may include in the rates
charged to residents of the greater Canutillo service area.

     SECTION 2.  Defines the greater Canutillo service area.

     SECTION 3.  Emergency clause. 



EXPLANATION OF AMENDMENTS
Committee Amendment #1:  At page 1, line 17, after the word "area;", deletes the word "or" and
adds the word "and";  at page 1, between lines 19 and 20, adds a new subsection (c) to read as
follows:
           (c) Notwithstanding subsections (a) and (b) of this Section, for a period of five
years after the City of El Paso begins water supply or sewer service to the greater Canutillo service
area, the City of El Paso may not charge residents of the service area a rate that exceeds 115 percent
of the rate charged to the residents of the City of El Paso. 

SUMMARY OF COMMITTEE ACTION
H.B.1824 was considered by the committee in a public hearing on March 13, 1995.
The following persons testified in favor of the bill: 
     Mr. Ed Archuleta, representing El Paso Public Service Board;
     Mr. Herbert L. Prouty, General Counsel, El Paso Water Utilities, Public Service Board,
representing himself;
     Ms. Jessica Wales, representing herself and El Paso Interreligous Sponsoring Organization.
The following persons testified against the bill: None (0).
The following persons testified on the bill: 
     Mr. Samuel W. Jones, representing Texas Natural Resource Conservation Commission;
     Mr. Tom Brown, representing the Texas Water Development Board.
The bill was left pending.

H.B.1824 was considered by the committee in a public hearing on March 27, 1995.
No testimony was received.
The committee considered one (1) amendment to the bill.  The amendment was adopted without
objection.
The bill was reported favorably as amended, with the recommendation that it do pass and be printed,
by a record vote of 8 ayes, 0 nays, 0 pnv, and 1 absent.