By:  Armbrister                                        S.B. No. 690

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to state government's purchasing and use of electricity.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Section 447.008, Government Code, is amended by

 1-4     amending Subsections (b) and (d) and adding Subsections (f), (g),

 1-5     and (h) to read as follows:

 1-6           (b)  Using available state, federal, or oil overcharge funds,

 1-7     the energy management center may assist state agencies and

 1-8     institutions of higher education in analyzing and negotiating rates

 1-9     for electricity and natural gas supplies from locally certificated

1-10     electric suppliers, natural gas suppliers, or state-owned energy

1-11     resources, including transportation charges for natural gas.  The

1-12     provisions of this section shall not be construed to empower the

1-13     energy management center to negotiate rates for natural gas

1-14     supplies on behalf of state agencies or institutions but rather to

1-15     provide technical assistance as needed.

1-16           (d)  Any state agency or institution of higher education with

1-17     expertise in rate analysis, negotiation, or any other matter

1-18     related to the procurement of electricity and natural gas supplies

1-19     from locally certificated electric suppliers, natural gas

1-20     suppliers, or state-owned energy resources may assist the energy

1-21     management center whenever practicable.  The attorney general on

1-22     request shall assist the energy management center and other state

1-23     agencies and institutions of higher education to negotiate rates

 2-1     for electricity and other terms of electric utility service.

 2-2           (f)  The energy management center on request may negotiate

 2-3     rates for electricity and other terms of electric utility service

 2-4     for a state agency or institution of higher education.  The energy

 2-5     management center may also negotiate the rates and the other terms

 2-6     of service for a group of agencies and institutions together in a

 2-7     single contract.

 2-8           (g)  The energy management center shall analyze the rates for

 2-9     electricity charged to and the amount of electricity used by state

2-10     agencies and institutions of higher education to determine ways the

2-11     state could obtain lower rates and use less electricity.  State

2-12     agencies, including the Public Utility Commission of Texas, and

2-13     institutions of higher education shall assist the energy management

2-14     center to obtain the information the center requires to perform its

2-15     analysis.

2-16           (h)  The energy management center and the attorney general

2-17     shall cooperate in monitoring efforts to deregulate the electric

2-18     utility industry and in reporting on the ways in which deregulation

2-19     would affect state government as a purchaser of electricity.  The

2-20     energy management center, represented by the  attorney general, may

2-21     intervene in proceedings before the Public Utility Commission of

2-22     Texas that are related to deregulating all or part of the electric

2-23     utility industry to represent the interests of state government as

2-24     a purchaser of electricity in those proceedings.

2-25           SECTION 2.  The importance of this legislation and the

 3-1     crowded condition of the calendars in both houses create an

 3-2     emergency and an imperative public necessity that the

 3-3     constitutional rule requiring bills to be read on three several

 3-4     days in each house be suspended, and this rule is hereby suspended,

 3-5     and that this Act take effect and be in force from and after its

 3-6     passage, and it is so enacted.