LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                           May 4, 1995



 TO:     Honorable Steve Holzheauser, Chair     IN RE: Committee Substitute
         Committee on Energy Resources                        forHouse Bill
         House of Representatives               No. 1715
         Austin, Texas                                  By: Craddick








FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1715 (relating to the determination of electric prices for
certain customers, including operators or marginal wells) this
office has determined the following:

The bill would amend the Public Utilities Regulatory Act to allow
an electric utility to charge retail electric service customers a
price that is lower than that approved by a regulatory authority
under certain conditions.  These customers would include marginal
oil wells or groups of wells and related facilities that meet
certain criteria.  In cases in which a utility charges a price
that is lower than the approved rate, the utility would have to
submit certain specified information to the Public Utility
Commission (PUC) regarding the contract.  The PUC would have
exclusive jurisdiction to review any price charged and would be
responsible for reviewing complaints filed pursuant to the bill. 
Electric utilities could also charge wholesale customers rates
lower than approved rates if these customers meet certain
criteria.

The PUC  would have some expanded responsibilities under this
bill, including reviewing filings related to pricing at lower
than approved rates, conducting additional hearings, and
reviewing the extent of revenue losses to determine which rate
class would bear the cost burden.  However, it is not certain
that these would require additional resources.

The bill could  produce a loss to general revenue based on a    




decrease in the Utility Gross Receipts Tax as a result of reduced
gross utility revenues.   It is not possible, however, to 
estimate the amount of the loss since the number of customers
receiving lower rates and other related factors are not known.


No fiscal implication to units of local government is
anticipated.

The fiscal implication to  the State cannot be determined.


Source:   Railroad Commission, Public Utility Commission
          LBB Staff: JK, KW