COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:2414H.01I Bill No.:HB 1198 Subject:Utilities; Public Service Commission Type:Original Date:April 21, 2023Bill Summary:This proposal modifies provisions related to utility rates.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026General Revenue*$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)Total Estimated
Net Effect on
General Revenue
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
*This bill could increase utility costs to all state departments and local governments if rate
changes are made as a result of these new standards, however, Oversight assumes the potential
increase would be less than the $250,000 threshold each year.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Other State Funds*$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)Total Estimated
Net Effect on Other
State Funds
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
Numbers within parentheses: () indicate costs or losses. L.R. No. 2414H.01I
Bill No. HB 1198
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Local Government$0 to (Unknown)$0 to (Unknown)$0 to (Unknown) L.R. No. 2414H.01I
Bill No. HB 1198
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Office of Administration - Facilities Management, Design and
Construction (FMDC) assume that this bill could increase utility costs to all state departments
and local governments if rate changes are made. Without additional information, FMDC is
unable to accurately calculate the impact of this bill; therefore, the impact is $0 to unknown.
Oversight assumes this proposal could increase utility cost for the Office of Administration as
well as other state agencies and local governments. Since it is unknown how much of a rate
increase will be authorized (if any), Oversight will reflect a range from $0 (no utility will
increase rates) to an unknown cost to the state and local political subdivisions for higher utility
costs, however, Oversight assumes the potential increase in utility cost will be under $250,000.
Officials from the Department of Commerce and Insurance, the Metropolitan St. Louis
Sewer District, South River Drainage District, the St. Charles County Pwsd, the
Street Light District and the Urich Water/Wastewater each assume the proposal will have no
fiscal impact on their respective organizations. Oversight does not have any information to the
contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for these agencies.
FISCAL IMPACT – State GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026GENERAL REVENUE FUNDCost - Office of Administration
Potential increase in utility costs
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT TO
THE GENERAL REVENUE FUND$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
VARIOUS STATE FUNDSCost - Various State Agencies
Potential increase in utility costs
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT TO
VARIOUS STATE FUNDS
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown) L.R. No. 2414H.01I
Bill No. HB 1198
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FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026LOCAL POLITICAL
SUBDIVISIONS
Cost - Local Governments
Potential increase in utility costs
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT TO
LOCAL POLITICAL SUBDIVISIONS
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
FISCAL IMPACT – Small Business
Small businesses could have an increase in utility cost as a result of this proposal.
FISCAL DESCRIPTION
This bill changes the calculation of assessments against public utilities used to fund the Public
Service Commission. Starting January 1, 2024, the total amount assessed on the total gross
intrastate operating revenue of all public utilities cannot exceed the 350/1000 of one percent and
will increase every two years thereafter by 1/100 of one percent until the maximum amount
available to be assessed is equal to 1/2 of one percent. All public utilities subject to Public
Service Commission’s jurisdiction must defer to an asset or liability account any difference in
the assessment actually incurred and those used to set rates based on the corporation’s most
recently completed general rate proceeding.
The asset or liability account balances must be included in the revenue requirement used to set
rates through an amortization over a reasonable period of time in such utility’s subsequent
general rate proceedings.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space. L.R. No. 2414H.01I
Bill No. HB 1198
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SOURCES OF INFORMATION
Department of Commerce and Insurance
Office of Administration
Metropolitan St. Louis Sewer District
South River Drainage District
St. Charles County Pwsd
Uruch Water/wastewater
Hancock Street Light District
Julie MorffRoss StropeDirectorAssistant DirectorApril 21, 2023April 21, 2023