SRC-TNM S.B. 690 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 690
By: Armbrister
State Affairs
4-8-97
As Filed


DIGEST 

Currently, while state agencies can receive assistance on conservation
efforts from the State Energy Conservation Office and are represented in
rate cases before the Public Utility Commission by the attorney general,
assistance on rate analysis and contract negotiation is not readily
available.  In addition, no agency is charged with handling the State of
Texas as a utility customer.  S.B. 690 would expand the role of the
General Service Commission's (GSC) energy management center, also known as
the State Energy Conservation Office.  New duties for the GSC would
include analysis of utility rates, monitoring the effects of electric
utility deregulation on state government as a purchaser of electricity,
and negotiating electric rates for state agencies and universities. 

PURPOSE

As proposed, S.B. 690 outlines provisions regarding state government's
purchasing and the use of electricity. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 447.008, Government Code, by amending
Subsections (b) and (d) and adding Subsections (f), (g), and (h), as
follows: 

(b) Prohibits the provisions of this section from being construed to
empower the energy management center (center) to negotiate rates for
natural gas supplies on behalf of state agencies or institutions but
rather to provide technical assistance as needed.   

(d) Requires the attorney general to assist the center and other state
agencies and institutions of higher education to negotiate rates for
electricity and other terms of electric utility service on request.   

(f) Authorizes the center to negotiate electricity rates and other terms
of electric utility service for a state agency or institution of higher
education.  Authorizes the center to negotiate the rates and the other
terms of service for a group of agencies and institutions together in a
single contract. 

(g) Requires the center to analyze the rates for electricity charged to
and the amount of electricity used by state agencies and institutions of
higher education to determine ways the state could obtain lower rates and
use less electricity.  Requires state agencies, including the Public
Utility Commission of Texas, and institutions of higher education to
assist the center to obtain the information the center requires to perform
its analysis. 

(h) Requires the center and the attorney general to cooperate in
monitoring efforts to deregulate the electric utility industry and in
reporting on the ways in which deregulation would affect state government
as a purchaser of electricity.  Authorizes the center, as represented by
the attorney general, to intervene in proceedings before the Public
Utility Commission of Texas that are related to deregulating all or part
of the electric utility industry  to represent the interests of state
government as a purchaser of electricity in those proceedings. 

SECTION 2. Emergency clause.
  Effective date: upon passage.