SRC-ARR S.B. 1152 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1152
76R6370 CBH-FBy: Bivins
Natural Resources
3/24/1999
As Filed


DIGEST 

Currently, Texas law does not authorize the state to obtain electricity and
to sell or convey that electricity. S.B. 1152 authorizes the state to
obtain electricity and to sell or convey that electricity. 

PURPOSE

As proposed, S.B. 1152 authorizes the state to obtain electricity and to
sell or convey that electricity. 

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 Section 31.002(1), Utilities Code, to redefine "electric
utility." 

SECTION 2. Amends Section Chapter 35, Utilities Code, by adding Subchapter
D, as follows: 

SUBCHAPTER D. STATE AUTHORITY TO SELL OR CONVEY POWER

 Sec. 35.101. DEFINITIONS. Defines "commissioner" and "public retail
customer." 

Sec. 35.102. STATE AUTHORITY TO SELL OR CONVEY POWER. Authorizes the
commissioner of the General Land Office (commissioner), acting on behalf of
the state, to sell or otherwise convey power directly to a public retail
customer regardless of whether the public retail customer is also a
wholesale customer. 

Sec. 35.103. ACCESS TO TRANSMISSION AND DISTRIBUTION SYSTEMS; RATES.
Entitles the state to have access to all transmission and distribution
systems of all electric utilities, municipally owned utilities, and
electric cooperative corporations that serve public retail customers.
Requires an entity described by Subsection (a) to provide any utility
service, including transmission, distribution, and other services, to the
state at the lowest applicable rate charged for similar services to other
customers.  

Sec. 35.104. RETAIL TRANSACTION LIMIT. Prohibits the state from engaging in
retail transactions that exceed 2.5 percent of a retail electric utility's
total retail load in a service area.  

Sec. 35.105. COSTS OF SERVING STATE AGENCY. Prohibits an electric utility,
municipally owned utility, or electric cooperative corporation from
recovering from a residential customer or from any other customer class the
assigned and allocated costs of serving a state agency, institution of
higher education, public school district, or political subdivision of this
state.  

Sec. 35.106. WHOLESALE CUSTOMERS. Provides that this subchapter does not
prevent the commissioner, acting on behalf of this state, from registering
as a power marketer. 

SECTION 3. Amends Sections 52.133(a), (c), and (d), Natural Resources Code,
to authorize the  commissioner, the owner of the soil under Subchapter F,
or the commissioner, acting on the behalf of and at the direction of an
owner of the soil under Subchapter F, the school land board (board), or a
board for lease, or at the direction of the Board for Lease of University
Lands, to negotiate and execute contracts or any other instruments or
agreements necessary to dispose of or enhance their portion of the royalty
taken in kind, including contracts for sale, purchase, transportation, and
storage and including insurance contracts or other agreements, to secure or
guarantee payment. Authorizes the commissioner, the owner of the soil under
Subchapter F, or the commissioner acting on behalf of and at the direction
of an owner of the soil under Subchapter F, the board, or a board for
lease, to negotiate and execute contracts or any other instruments or
agreements necessary to convert that portion of the royalty taken in kind
into other forms of energy, including electricity. Deletes text providing
that this section does not apply to or have any effect on the Board for
Lease of University Lands or any lease executed on university land. Makes
conforming changes.  

SECTION 4. Amends Section 53.026, Natural Resources Code, to authorize the
commissioner or the commissioner acting on behalf of and at the direction
of the board or a board for lease to negotiate and execute a contract or
any other instrument or agreement necessary to convert that portion of the
royalty  taken in kind to other forms of energy, including electricity.
Makes conforming changes. 

SECTION 5. Amends Section 53.077, Natural Resources Code, to makes
conforming changes. 

SECTION 6. Effective date: September 1, 1999.

SECTION 7. Emergency clause.