SEB C.S.S.B. 1797 76(R)    BILL ANALYSIS

Office of House Bill AnalysisS.B. 1797
By: Duncan
Energy Resources


Currently, a gas utility or municipally owned utility system is required to
transport natural gas produced on state lands to a state agency if pipeline
capacity is available.  S.B. 1797 prohibits such a utility from refusing to
provide this service to school districts.  


It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 


SECTION 1.  Amends Subchapter F, Chapter 104, Utilities Code, by adding
Section 104.2545, as follows: 

Sec. 104.2545.  REQUIRED SERVICE TO SCHOOL DISTRICT.  (a)  Defines "service
site" to mean facilities or buildings operated by a school district in a
contiguous geographic area. 

(b)  Prohibits a gas utility or municipally owned utility from refusing to
provide to a school district specific services at a service site unless the
utility is prohibited by other law from providing the service and if
sufficient pipeline capacity is available on an existing facility of the
utility.  Establishes that those services are the sale of gas, the
transportation of an annual average of 10 million British thermal units or
more each day that is taken as a royalty in kind and owned by the state or
managed by a marketing program operated by the state or a state agency, or
a combination of those services. 

(c)  Requires a utility to provide gas service at rates provided by a
written contract negotiated between the utility and the state or a state
agency.  Authorizes the Railroad Commission of Texas to determine a fair
and reasonable rate for the school district as a rate for a separate class
of service if no agreement on the rate is reached.    

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.