HBA-NMO C.S.H.B. 2447 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2447 By: Counts Natural Resources 4/22/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE The Colorado River Municipal Water District (district) currently provides water to over 340,000 people in West Texas. The district has 25 pump stations which require electricity in 14 counties. A retail electric customer, with its services provided by four separate electric utilities, the district spent approximately $6.2 million on electric services in 1998. C.S.H.B. 2447 authorizes the district to develop, generate, transmit, or distribute water power and electric energy inside the district's boundaries for its own use; purchase electric energy from any available source for use at a district facility; and acquire and dispose of facilities for those purposes. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 340, Acts of the 51st Legislature, Regular Session, 1949 (Article 8280-137, V.T.C.S.), by adding Subsection 7B, as follows: Sec. 7B. (a) Authorizes the Colorado River Municipal Water District (district) to: (1) develop, generate, transmit, or distribute water power and electric energy inside the district's boundaries for its own use; (2) purchase electric energy from any available source for use at a facility the district owns, operates, or maintains inside its boundaries; (3) enter into an agreement to acquire, install, construct, finance, operate, make an addition to, own, or operate an electric energy generating, transmission, or distribution facility, jointly with another person; or (4) sell or otherwise dispose of any of the district's interest in a jointly owned facility described by Subdivision (4) of this section. (b) Provides that this section does not affect the applicability of Title 2 (Public Utility Regulatory Act), Utilities Code, to the district or to actions of the district. SECTION 2. Effective date: January 1, 2002. SECTION 3. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute differs from the original in SECTION 1, which amends Chapter 340, Acts of the 51st Legislature, Regular Session, 1949, by creating Subsection (a) from originally proposed text. Modifies Subsection (a)(1) by authorizing the Colorado River Municipal Water District (district) to develop, generate, transmit, or distribute water power and electric energy inside the district's boundaries for its own use; rather than develop and generate water power and electric energy inside or outside the district's boundaries. Modifies Subsection (a)(2) by authorizing the district to purchase electric energy from any available source for use at a district facility, rather than at wholesale for resale or for use at a district facility. Modifies Subsection (a)(4) by authorizing the district to sell or otherwise dispose of any of the district's interest in a jointly owned facility described by Subdivision (4), rather than (3), of this section. The substitute differs from the original by adding Subsection (b) to provide that this section does not affect the applicability of Title 2 (Public Utility Regulatory Act), Utilities Code, to the district or to actions of the district. The substitute differs from the original in SECTION 2 by providing that this Act takes effect on January 1, 2002, rather than setting forth the emergency clause with this Act taking effect upon passage. The substitute differs from the original by providing SECTION 3 (short emergency clause).