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.