S.B. 1280 78(R)    BILL ANALYSIS


S.B. 1280
By: Fraser
Regulated Industries
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently, there exists some ambiguity about the appropriate mechanism for
regulating certain 
successors to electric cooperatives. As proposed, S.B. 1280 changes the
definition of an electric 
cooperative by removing language pertaining to successors to electric
cooperatives and allowing the Public Utility Commission to determine a
schedule for certain utilities to transition to a competitive market. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1. Amends Section 11.003(9), Utilities Code, to redefine "electric
cooperative." 

SECTION 2. Amends Section 39.102, Utilities Code, by adding Subsections
(d) and (e), as follows. 
(d) Requires the Public Utility Commission of Texas (PUC) to oversee
compliance with this chapter by electric utilities that were not subject
to this chapter before September 1, 2003. Requires PUC to establish
schedules, procedures, and approval requirements as part of its oversight
requirement, as it deems necessary to achieve the objectives of this
chapter. Exempts from this subsection an electric utility to which
Subsection (c) applies. 
(e) Requires PUC to consider certain criteria in establishing a schedule
under Subsection (d). 

SECTION 3. Repealer: Section 41.063, Utilities Code (Retail Rates of
Successor Electric Utility to Electric Cooperative). 

EFFECTIVE DATE

September 1, 2003.