Article
Energy deregulation legislation enacted in the 1999 session is now paying dividends to institutions of higher education, school districts, and other public retail customers. This program, known as the State Power Program, authorizes the Commissioner of the General Land Office, David Dewhurst, to negotiate and execute contracts for the conversion of oil and gas royalties from public lands to electricity. This electricity is then offered for sale to public retail customers at a discounted price.
Commissioner Dewhurst has said that the Land Office's Power Program can increase the Land Office's contribution to the schoolchildren of Texas more than 30% a year. Specifically, this program could contribute as much as $35 - $40 million a year to the funds that finance education.
School districts who participate in this program can save between four and five percent on their utility bills. Additional benefits to this program include:
Tax exemptions: Electricity purchased under the program is not subject to the Gross Receipts Tax nor subject to the Public Utility Commission assessment.
Limits on Property Tax Increases: Because the revenue from the sales of electricity under this program benefits the school finance fund, which is distributed to school districts on a per student basis, the program helps limit property tax increases.
Fixed Price: The program permits the participants to lock in a fixed price per kilowatt hour used, including the price of fuel, protecting the participants from price fluctuations.
Ease of Access: The State Power Program permits public retail customers to procure electricity without going through the bidding process.
Free Enrollment: School districts are not charged to participate in this program.
As of March 15, 2002 the State Power Program has served over 130 independent school districts in Texas. In Grayson County, Collinsville ISD and S & S CISD are participating in the program; Cooke County has Lindsay, Muenster and Valley View ISDs. Fannin County has Ector, Honey Grove, Sam Rayburn and Savoy ISDs enrolled in the State Power Program.
More information can be found on the General Land Office website: www.glo.state.tx.us/energy/spp.
State Representative Ron Clark
P.O. Box 2910
Austin, TX 78768-2910
(903) 893-9426 * (512) 463-0474
(512) 475-3767 (fax)
ron.clark@house.state.tx.us
http://www.grayson.edu/district62/RonClark.html
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