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.