BILL ANALYSIS



S.B. 1628
By: Henderson (D. Jones)
May 8, 1995
Committee Report (Amended)


BACKGROUND

S.B. 83, 73rd Legislature, was passed as a part of the
comptroller's budget package proposal.  S.B. 83 amended the Public
Utility Regulatory Act and the Gas Utility Regulatory Act with
respect to energy transportation tax assessments.  Some of the
deletion language, however, was not included in the bill.

PURPOSE

S.B. 1628 would delete language that exempts people who transport
gas on behalf of the state from being considered a "gas utility," 
"public utility," or "utility" unless they are otherwise defined as
a gas utility.

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. Amends Section 1(d), Article 6050, V.T.C.S., to delete
the provision that the term "gas utility," "public utility," or
"utility" does not include a person not otherwise a gas utility
that transports gas on behalf of the state or a state agency or
institution.

SECTION 2. (1)  Repeals Section 6, Article 6050, V.T.C.S., which
prohibits a gas utility from refusing to provide service to a state
agency if pipeline capacity is available and includes municipally
owned utilities.
           
           (2)  Repeals Section 1(b), Article 6053, V.T.C.S., which
allowed the Railroad Commission to set rates that a gas utility may
charge a state agency, prescribed how the Commission should
determine rates, and included municipally owned utilities.

SECTION 3. Emergency Clause.
           Effective Date: upon passage.

EXPLANATION OF AMENDMENTS

Committee Amendment No. 1 clarifies that rates are to include only
expenses necessary to provide gas service.  Committee Amendment No.
2 makes conforming changes to Article 6053, Revised Statutes, to
make it match changes made to GURA in 1983 regarding negotiated
rates, terms, and conditions of service.

SUMMARY OF COMMITTEE ACTION

S.B. 1628 was considered by the Energy Resources Committee in a
public hearing on May 8, 1995. The committee considered two
amendments to the bill. Both were adopted without objection. Joe
McClendon, representing Lone Star Gas Company, testified in favor
of the bill. No one testified against the bill. The bill was
reported favorably as amended, with the recommendation that it do
pass and be printed and be sent to the Committee on Local and
Consent Calendars, by a record vote of 6 ayes, 0 nays, 0 PNV, and
3 absent.