IMF H.B. 2148 75(R)BILL ANALYSIS


STATE AFFAIRS
H.B. 2148
By: Longoria
5-9-97
Committee Report (Unamended)



BACKGROUND 

Energy service companies (ESCO's) provide energy efficiency related
services to customers in their homes and businesses.  Many utilities have
utility affiliates that provide energy efficiency and demand management
services and technology ranging from weatherization to motion sensitive
light switches to complete building renovations.  Current law allows
utility companies to select which companies it will use to provide these
services to its customers, and may be naturally inclined to favor their
own affiliates.  

PURPOSE

As proposed, H.B. 2148 would require the Public Utility Commission to
regulate electric companies to ensure that their affiliates, partners, or
ventures do not gain an unfair advantage over independent companies that
provide energy efficiency services.  The bill would also require the
Public Utility Commission to adopt rules that: allow a customer to choose
any energy efficiency provider or technology; allow a energy efficiency
provider to choose what services it will offer; and promote a competitive
market for energy efficiency services.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill grants rulemaking authority
to the Public Utility Commission in SECTION 1 (Sec. 2.216 PURA 1995, Art.
1446c-o, V.T.C.S.) of this Act. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2.216 of the Public Utility Regulatory Act of
1995 (Article 1446c-0, V.T.C.S. by adding Subsections (b) and (c) as
follows: 

Section 2.216 (b) requires the Public Utility Commission to monitor and
regulate the relationships between utilities and their affiliates,
partners, or ventures to ensure that they do not garner an unfair
advantage over competitors in the energy efficiency market. 

Section 2.216 (c) requires the Public Utility Commission to adopt rules
that ensure that utility companies with energy efficiency incentive
program's financed by rate payments allow:  customer choice of provider of
energy efficiency services; energy efficiency companies to determine their
own products or services; and full competition in the energy efficiency
market.    

SECTION 2.  Requires the Public Utility Commission to adopt rules
necessary to carry out this Act by December 31, 1997. 

SECTION 3.  Emergency clause.  Effective date:  upon passage.