1-1     By:  Armbrister                                        S.B. No. 690

 1-2           (In the Senate - Filed February 20, 1997; February 25, 1997,

 1-3     read first time and referred to Committee on State Affairs;

 1-4     April 17, 1997, reported favorably by the following vote:  Yeas 12,

 1-5     Nays 1; April 17, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to state government's purchasing and use of electricity.

 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-10           SECTION 1.  Section 447.008, Government Code, is amended by

1-11     amending Subsections (b) and (d) and adding Subsections (f), (g),

1-12     and (h) to read as follows:

1-13           (b)  Using available state, federal, or oil overcharge funds,

1-14     the energy management center may assist state agencies and

1-15     institutions of higher education in analyzing and negotiating rates

1-16     for electricity and natural gas supplies from locally certificated

1-17     electric suppliers, natural gas suppliers, or state-owned energy

1-18     resources, including transportation charges for natural gas.  The

1-19     provisions of this section shall not be construed to empower the

1-20     energy management center to negotiate rates for natural gas

1-21     supplies on behalf of state agencies or institutions but rather to

1-22     provide technical assistance as needed.

1-23           (d)  Any state agency or institution of higher education with

1-24     expertise in rate analysis, negotiation, or any other matter

1-25     related to the procurement of electricity and natural gas supplies

1-26     from locally certificated electric suppliers, natural gas

1-27     suppliers, or state-owned energy resources may assist the energy

1-28     management center whenever practicable.  The attorney general on

1-29     request shall assist the energy management center and other state

1-30     agencies and institutions of higher education to negotiate rates

1-31     for electricity and other terms of electric utility service.

1-32           (f)  The energy management center on request may negotiate

1-33     rates for electricity and other terms of electric utility service

1-34     for a state agency or institution of higher education.  The energy

1-35     management center may also negotiate the rates and the other terms

1-36     of service for a group of agencies and institutions together in a

1-37     single contract.

1-38           (g)  The energy management center shall analyze the rates for

1-39     electricity charged to and the amount of electricity used by state

1-40     agencies and institutions of higher education to determine ways the

1-41     state could obtain lower rates and use less electricity.  State

1-42     agencies, including the Public Utility Commission of Texas, and

1-43     institutions of higher education shall assist the energy management

1-44     center to obtain the information the center requires to perform its

1-45     analysis.

1-46           (h)  The energy management center and the attorney general

1-47     shall cooperate in monitoring efforts to deregulate the electric

1-48     utility industry and in reporting on the ways in which deregulation

1-49     would affect state government as a purchaser of electricity.  The

1-50     energy management center, represented by the  attorney general, may

1-51     intervene in proceedings before the Public Utility Commission of

1-52     Texas that are related to deregulating all or part of the electric

1-53     utility industry to represent the interests of state government as

1-54     a purchaser of electricity in those proceedings.

1-55           SECTION 2.  The importance of this legislation and the

1-56     crowded condition of the calendars in both houses create an

1-57     emergency and an imperative public necessity that the

1-58     constitutional rule requiring bills to be read on three several

1-59     days in each house be suspended, and this rule is hereby suspended,

1-60     and that this Act take effect and be in force from and after its

1-61     passage, and it is so enacted.

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