S.B. No. 495
 
AN ACT
relating to allowing a municipal electric utility to enter into
hedging contracts for certain commodities.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Subsections (a) and (d), Section 2256.0201,
Government Code, are amended to read as follows:
       (a)  A municipality that owns a municipal electric utility
that is engaged in the distribution and sale of electric energy or
natural gas to the public may enter into a hedging contract and
related security and insurance agreements in relation to fuel oil,
natural gas, coal, nuclear fuel, and electric energy to protect
against loss due to price fluctuations. A hedging transaction must
comply with the regulations of the Commodity Futures Trading
Commission and the Securities and Exchange Commission. If there is
a conflict between the municipal charter of the municipality and
this chapter, this chapter prevails.
       (d)  In this section, "hedging" means the buying and selling
of fuel oil, natural gas, coal, nuclear fuel, and electric energy
futures or options or similar contracts on those commodities and
related transportation costs [commodity futures] as a protection
against loss due to price fluctuation.
       SECTION 2.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2007.
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President of the Senate             Speaker of the House
       I hereby certify that S.B. No. 495 passed the Senate on
March 20, 2007, by the following vote:  Yeas 29, Nays 0.
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   Secretary of the Senate
       I hereby certify that S.B. No. 495 passed the House on
April 3, 2007, by the following vote:  Yeas 137, Nays 0, one
present not voting.
______________________________ 
   Chief Clerk of the House
Approved:
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            Date
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          Governor