LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 17, 1995



 TO:     Honorable Curtis Seidlits, Chair       IN RE:  Senate Bill No.
         Committee on State Affairs             1227,
         House of Representatives                             as engrossed
         Austin, Texas                                  By: Armbrister









FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
1227 (Relating to the regulation of electric cooperative
corporations.) this office has determined the following:

The bill would amend the Public Utility Regulatory Act to allow
certain electric cooperatives to opt for rate deregulation if a
majority of the coop members elect to deregulate.  The Public
Utility Commission would administratively certify that the coop
is deregulated for ratemaking purposes.  The bill's provision
would not limit the commission's jurisdiction to regulate the
distribution cooperatives under other provisions of the Public
Utility Regulatory Act.

Implementation of the bill's provisions would result in savings
from functions not performed beginning in fiscal year 1997.



The probable fiscal implication of implementing the provisions of
the bill during each of the first  five years following passage
is estimated as follows:
         




            Fiscal      Probable          Change in   
             Year    Cost/(Savings)    Number of State
                     from  General     Employees from 
                    Revenue Fund 001       FY 1995    
                                                      
          1996                     $0               .0
          1997               (62,339)            (1.0)
                                                      
          1998               (93,508)            (2.0)
                                                      
          1999              (124,677)            (2.5)
          2000              (124,677)            (2.5)
                                                      
                                                      
                                                      
       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
 
The fiscal implication to  units of local government cannot be
determined.


Source:   Public Utility Commission
          LBB Staff: JK, BR, DF