LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 30, 2009 TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3410 by Chisum (Relating to costs incurred by certain persons in relation to complaints filed with the Railroad Commission of Texas against gas utilities.), As Introduced No significant fiscal implication to the State is anticipated. The bill would require the Railroad Commission (RRC) to determine the reasonableness of the administrative litigation costs incurred by an affected person or by a state agency or municipality that is a party to a complaint proceeding against the utility if the party is wholly or partially successful in prosecuting the complaint before a regulatory authority or a court. The bill provides that to the extent a regulatory authority (a municipality or the RRC) determines the costs are reasonable, a gas utility must reimburse the costs of an affected person or of a state agency or municipality that is a party to a complaint proceeding against the utility if the party is wholly or partially successful in prosecuting the complaint before a regulatory authority or a court. The bill would also permit the party to be reimbursed for any reasonably necessary expenses related to the investigation, preparation, and prosecution of a claim on which the person, agency, or municipality prevails, including the reasonable costs of consultants, accountants, auditors, attorneys, and engineers. The bill would also prohibit a gas utility from recovering amounts paid as reimbursement under this section as or through a charge to the utility's customers. The RRC reports that the bill would not have a significant fiscal impact to the agency. Local Government Impact The bill would require municipalities to determine the reasonableness of the administrative litigation costs incurred by an affected person or by a state agency or municipality that is a party to a complaint proceeding against the utility if the party is wholly or partially successful in prosecuting the complaint before the muncipality or a court. The costs would depend on the number of complaints received against a utility under a municipality's jurisdiction. However, this estimate does not assume such costs would be significant. Source Agencies:455 Railroad Commission LBB Staff: JOB, WK, TL
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
March 30, 2009
TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3410 by Chisum (Relating to costs incurred by certain persons in relation to complaints filed with the Railroad Commission of Texas against gas utilities.), As Introduced
TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB3410 by Chisum (Relating to costs incurred by certain persons in relation to complaints filed with the Railroad Commission of Texas against gas utilities.), As Introduced
Honorable Jim Keffer, Chair, House Committee on Energy Resources
Honorable Jim Keffer, Chair, House Committee on Energy Resources
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB3410 by Chisum (Relating to costs incurred by certain persons in relation to complaints filed with the Railroad Commission of Texas against gas utilities.), As Introduced
HB3410 by Chisum (Relating to costs incurred by certain persons in relation to complaints filed with the Railroad Commission of Texas against gas utilities.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would require the Railroad Commission (RRC) to determine the reasonableness of the administrative litigation costs incurred by an affected person or by a state agency or municipality that is a party to a complaint proceeding against the utility if the party is wholly or partially successful in prosecuting the complaint before a regulatory authority or a court. The bill provides that to the extent a regulatory authority (a municipality or the RRC) determines the costs are reasonable, a gas utility must reimburse the costs of an affected person or of a state agency or municipality that is a party to a complaint proceeding against the utility if the party is wholly or partially successful in prosecuting the complaint before a regulatory authority or a court. The bill would also permit the party to be reimbursed for any reasonably necessary expenses related to the investigation, preparation, and prosecution of a claim on which the person, agency, or municipality prevails, including the reasonable costs of consultants, accountants, auditors, attorneys, and engineers. The bill would also prohibit a gas utility from recovering amounts paid as reimbursement under this section as or through a charge to the utility's customers. The RRC reports that the bill would not have a significant fiscal impact to the agency.
The bill would require the Railroad Commission (RRC) to determine the reasonableness of the administrative litigation costs incurred by an affected person or by a state agency or municipality that is a party to a complaint proceeding against the utility if the party is wholly or partially successful in prosecuting the complaint before a regulatory authority or a court. The bill provides that to the extent a regulatory authority (a municipality or the RRC) determines the costs are reasonable, a gas utility must reimburse the costs of an affected person or of a state agency or municipality that is a party to a complaint proceeding against the utility if the party is wholly or partially successful in prosecuting the complaint before a regulatory authority or a court. The bill would also permit the party to be reimbursed for any reasonably necessary expenses related to the investigation, preparation, and prosecution of a claim on which the person, agency, or municipality prevails, including the reasonable costs of consultants, accountants, auditors, attorneys, and engineers. The bill would also prohibit a gas utility from recovering amounts paid as reimbursement under this section as or through a charge to the utility's customers.
The RRC reports that the bill would not have a significant fiscal impact to the agency.
Local Government Impact
The bill would require municipalities to determine the reasonableness of the administrative litigation costs incurred by an affected person or by a state agency or municipality that is a party to a complaint proceeding against the utility if the party is wholly or partially successful in prosecuting the complaint before the muncipality or a court. The costs would depend on the number of complaints received against a utility under a municipality's jurisdiction. However, this estimate does not assume such costs would be significant.
Source Agencies: 455 Railroad Commission
455 Railroad Commission
LBB Staff: JOB, WK, TL
JOB, WK, TL