Texas Bills Would Terminate Authority For General Land Office To Sell Retail Power

Two identical bills filed with the Texas legislature (HB 1685 / SB 736) would terminate the statutory grant of authority that currently allows the Texas General Land Office (GLO) to sell power to public retail customers

Currently, the GLO offers retail electricity supply to various public entities under the State Power Program (SPP), with Cavallo Energy Texas LLC (Champion Energy/Calpine) acting as the supplier. Public retail customers eligible for the program include schools, cities and counties, state agencies, and other public facilities.

The bills would strike from current Section 35.102 of the Utilities Code the authority for the GLO to sell or convey "power" directly to a public retail customer. The GLO would retain the authority to sell natural gas to public retail customers under the bills

The bills would take effect September 1, 2017

The bills would provide that the General Land Office or an entity operating under a contract with the General Land Office may continue to provide retail electric service in accordance with Subchapter D, Chapter 35, Utilities Code, as that subchapter existed before the effective date of the bills, under the terms of an agreement with a customer entered into before the effective date of the bills, only until the date such agreement expires.

HB 1685 is authored by Rep. Travis Clardy

SB 736 is authored by Sen. Kelly Hancock