By:  Nixon                                            S.B. No. 1827
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to authorizing a municipal power agency to reduce rates
 1-2     for electricity that are an impediment to economic development.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter D, Chapter 163, Utility Code, is
 1-5     amended by adding a new Section 163.103 to read as follows:
 1-6           Sec. 163.103.  RATE REDUCTION PLAN.  (a)  A municipal power
 1-7     agency may develop a plan to defease, in whole or in part, its
 1-8     bonded indebtedness under this section as required to eliminate or
 1-9     substantially reduce its rates for the sale of electricity if those
1-10     rates are a substantial impediment to economic development in the
1-11     service area of the agency.
1-12           (b)  The provisions of the plan may include:
1-13           (1)  An agreement by another entity, whether public or
1-14     private, to participate in financing implementation of the plan;
1-15           (2)  The sale of any assets owned by the agency;
1-16           (3)  Dissolution of the agency, provided all obligations of
1-17     the agency are satisfied and all property and activities of the
1-18     agency are properly dispersed; and
1-19           (4)  Any other provision reasonably necessary to
1-20     accomplishing the plan.
1-21           (c)  Notwithstanding any other law, if any provision of a
1-22     plan developed under subsection (a) is subject to the approval of
 2-1     any agency of this state, other than the board of the agency that
 2-2     developed the plan, the plan shall be approved if the state agency
 2-3     determines that the plan will substantially reduce rates for
 2-4     electricity that are an impediment to economic development in the
 2-5     area served by the municipal power agency.
 2-6           SECTION 2.  This Act takes effect September 1, 1999.
 2-7           SECTION 3.  The importance of this legislation and the
 2-8     crowded condition of the calendars in both houses create an
 2-9     emergency and an imperative public necessity that the
2-10     constitutional rule requiring bills to be read on three several
2-11     days in each house be suspended, and this rule is hereby suspended,
2-12     and that this Act take effect and be in force according to its
2-13     terms, and it is so enacted.