BILL ANALYSIS


                                                        H.B. 1824
                                             By: Pickett (Rosson)
                                      Intergovernmental Relations
                                                         05-10-95
                              Senate Committee Report (Unamended)
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.  This area includes
approximately 9,034 people, many of whom are without water and
wastewater service.  The greater Canutillo service area excludes
the area of the El Paso County Water Control and Improvement
District-Westway.  The City of 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.  El Paso, through its PSB,
would have to charge rates for water and sewer service in the
greater Canutillo service area which exceed similar rates to its
municipal customers so that El Paso could fully recover the cost of
serving these customers.

PURPOSE

As proposed, H.B. 1824 provides for and sets forth the rates for
water supply or sewer services charged by the City of El Paso to
residents of a certain area of El Paso County.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. (a)  Authorizes the City of El Paso (city) to charge
residents of the greater Canutillo service area water supply or
sewer service rates that exceed the rates paid by water supply or
sewer service customers who are residents of the city if the higher
rates are necessary or appropriate to fully cover the cost of
service to the area, notwithstanding Section 16.349, Water Code.

     (b)  Authorizes the water supply or sewer service rates the
     city charges residents of the greater Canutillo service area
     to include the amounts necessary to recover certain operation
     and debt service costs.
     
     (c)  Prohibits the city from charging residents of the service
     area a rate that exceeds 115 percent of the rate charged to
     the residents of the city.
     
     SECTION 2.     Sets forth the boundaries of the greater Canutillo
service area that is in the northwestern portion of El Paso County.

SECTION 3. Emergency clause.
           Effective date: upon passage.