By:  Fraser                                                       S.B. No. 1747


A BILL TO BE ENTITLED

AN ACT

relating to the interest rate to be paid on utility deposits.                 
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 183.003, Utilities Code, is amended by 
amending Subsection (b) and deleting Subsection (c) to read as 
follows:
	(b)  The commission shall [may not] set the rate at an amount 
that equals [exceeds the lesser of:
		[(1)  85 percent of] the average rate paid over the 
previous 12-month period on United States treasury bills with a 
26-week [12-month] maturity [date; or
		[(2)  12 percent].                                           
	[(c)  The commission may not set the rate at an amount that is 
less than six percent.]
	SECTION 2.  This Act takes effect September 1, 2005.