79S31499 JJT-D

By:  Farabee                                                      H.B. No. 160



A BILL TO BE ENTITLED

AN ACT

relating to providing a discounted rate for electricity provided to 
school districts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  The heading to Section 36.351, Utilities Code, 
is amended to read as follows:
	Sec. 36.351.  DISCOUNTED RATES FOR PUBLIC SCHOOL DISTRICTS 
AND CERTAIN INSTITUTIONS OF HIGHER EDUCATION.
	SECTION 2.  Sections 36.351(a), (d), (e), and (f) are 
amended to read as follows:
	(a)  Notwithstanding any other provision of this title, each 
electric utility and municipally owned utility shall discount 
charges for electric service provided to a facility of a public  
school district or a facility of a four-year state university, 
upper-level institution, Texas State Technical College, or 
college.
	(d)  A municipally owned utility is exempt from this section 
if the municipally owned utility:
		(1)  [,] on September 1, 1995, discounted base 
commercial rates for electric service provided to all four-year 
state universities or colleges in its service area by 20 percent or 
more; or
		(2)  on September 1, 2006, discounted base commercial 
rates for electric service provided to all school district 
facilities in its service area by 20 percent or more.
	(e)  This section does not apply to a rate charged to an 
institution of higher education by a municipally owned utility that 
provides a discounted rate to the state for electric services below 
rates in effect on January 1, 1995, or to a rate charged to a school 
district by a municipally owned utility that provides a discount to 
the school district for electric service below rates in effect on 
September 1, 2006, if the discounted rate provides a greater 
financial discount to the state or to the school district than is 
provided to the institution of higher education or school district
through the discount provided by this section.
	(f)  An investor-owned electric utility may not recover from 
residential customers or any other customer class the assigned and 
allocated costs of serving a school district or a state university 
or college that receives a discount under this section.
	SECTION 3.  This Act takes effect September 1, 2006.