By Patterson                                    S.B. No. 1373

      75R3197 CBH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the sale of electric energy by qualifying cogenerators.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subtitle B, Title II, Public Utility Regulatory

 1-5     Act of 1995  (Article 1446c-0, Vernon's Texas Civil Statutes), is

 1-6     amended by adding  Section 2.058 to read as follows:

 1-7           Sec. 2.058.  SALE OF ELECTRIC ENERGY BY QUALIFYING

 1-8     COGENERATOR.  (a)  Notwithstanding any law to the contrary, a

 1-9     qualifying cogenerator may  sell electric energy to any person

1-10     without becoming subject to any rate or licensing regulatory

1-11     requirements if the person to whom the sale is made:

1-12                 (1)  is located within five miles of the cogenerator;

1-13     and

1-14                 (2)  is not an individual.

1-15           (b)  The qualifying cogenerator is entitled to delivery of

1-16     the electric energy sold under Subsection (a) of this section by

1-17     any electric utility to the cogenerator's customers over the

1-18     utility's transmission and distribution lines on rates, terms, and

1-19     conditions that are:

1-20                 (1)  agreed to by the cogenerator and the utility; or

1-21                 (2)  reasonably comparable to the rates, terms, and

1-22     conditions provided by the utility under Sections 2.056 and 2.057

1-23     of this Act,  if the cogenerator and utility cannot reach an

1-24     agreement.

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

 2-2     crowded condition of the calendars in both houses create an

 2-3     emergency and an imperative public necessity that the

 2-4     constitutional rule requiring bills to be read on three several

 2-5     days in each house be suspended, and this rule is hereby suspended,

 2-6     and that this Act take effect and be in force from and after its

 2-7     passage, and it is so enacted.