SRC-TNM S.B. 1373 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1373
By: Patterson
State Affairs
3-26-97
As Filed


DIGEST 

Currently, in Texas a company that cogenerates power is prohibited from
selling the power to a company that borders the plant site or is located
across the road.  S.B. 1373 would allow a qualified cogenerator to sell
the power generated at the plant site to a neighboring company, as long as
the company is within a five-mile radius.  The power could be transmitted
over the existing lines of the utility company servicing the area,
provided the fees for transmission are reasonable as determined by the
Public Utility Commission. 

PURPOSE

As proposed, S.B. 1373 outlines provisions regarding the sale of electric
energy by qualifying cogenerators. 

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 Title IIB, Article 1446c-0, V.T.C.S. (Public Utility
Regulatory Act of 1995) by adding Section 2.058, as follows: 

Sec. 2.058. SALE OF ELECTRIC ENERGY BY QUALIFYING COGENERATOR. Authorizes
a qualifying cogenerator to sell electric energy to any person without
becoming subject to any rate or licensing regulatory requirements if the
person to whom the sale is made is located within five miles of the
cogenerator and is not an individual, notwithstanding any law to the
contrary.  Sets forth certain rates, terms, and conditions under which the
qualifying cogenerator is entitled to delivery of the electric energy sold
under Subsection (a) of this section by an electric utility to the
cogenerator's customers over the utility's transmission and distribution
lines. 

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