SRC-JRN S.B. 1374 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1374
By: Patterson
State Affairs
4-22-97
As Filed


DIGEST 

Currently, there is no Texas law that prohibits certain rates from being
passed to rate payers. Concern exists that some utility expenses relating
to rate cases and advertising may be passed to the ratepayer.  This bill
prohibits certain expenses of an electric utility from being passed to the
ratepayers. 

PURPOSE

As proposed, S.B. 1374 prohibits certain expenses of an electric utility
from being passed to the ratepayers. 

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 Article 1446c-0, V.T.C.S., by adding Section 2.1525, as
follows: 

Sec. 2.1525. DISALLOWED EXPENSES FOR INVESTOR-OWNED UTILITY. Prohibits the
regulatory authority from allowing certain expenditures as a cost or
expense for ratemaking for an investor-owned utility, notwithstanding
Sections 2.152 and 2.208(d) of this Act.  Authorizes the regulatory
authority to require an annual reporting from each investorowned utility
of all expenditures for business gifts and entertainment and for
institutional, consumption-inducing, and other advertising or public
relations expenses. 

SECTION 2. Effective date: September 1, 1997.
 Makes application of this Act prospective.

SECTION 3. Emergency clause.