LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 29, 2009 TO: Honorable Allan Ritter, Chair, House Committee on Natural Resources FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3610 by Miller, Doug (Relating to rates and methods of depreciation applied to a retired class of property for regulated water utilities.), As Introduced No significant fiscal implication to the State is anticipated. The bill would require that water utilities use the book cost less net salvage of depreciable utility plant retired to be charged in its entirety to the accumulated depreciation account of a utility, consistent with accounting treatment for other electric and gas utilities regulated by the Commission on Environmental Quality and the Pubic Utility Commission. The bill would thus allow a utility to account for the cost of salvaging an asset in book value if there is a loss on the salvage rather than a gain. The bill's passage is not expected to have a significant fiscal impact on the state. Local Government Impact No significant fiscal implication to units of local government is anticipated.Local governments that own utilities would benefit from increasing the amount of utility plant eligible for return and depreciation expense. Source Agencies:473 Public Utility Commission of Texas, 582 Commission on Environmental Quality LBB Staff: JOB, WK, TL
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
March 29, 2009
TO: Honorable Allan Ritter, Chair, House Committee on Natural Resources FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3610 by Miller, Doug (Relating to rates and methods of depreciation applied to a retired class of property for regulated water utilities.), As Introduced
TO: Honorable Allan Ritter, Chair, House Committee on Natural Resources
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB3610 by Miller, Doug (Relating to rates and methods of depreciation applied to a retired class of property for regulated water utilities.), As Introduced
Honorable Allan Ritter, Chair, House Committee on Natural Resources
Honorable Allan Ritter, Chair, House Committee on Natural Resources
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB3610 by Miller, Doug (Relating to rates and methods of depreciation applied to a retired class of property for regulated water utilities.), As Introduced
HB3610 by Miller, Doug (Relating to rates and methods of depreciation applied to a retired class of property for regulated water 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 that water utilities use the book cost less net salvage of depreciable utility plant retired to be charged in its entirety to the accumulated depreciation account of a utility, consistent with accounting treatment for other electric and gas utilities regulated by the Commission on Environmental Quality and the Pubic Utility Commission. The bill would thus allow a utility to account for the cost of salvaging an asset in book value if there is a loss on the salvage rather than a gain. The bill's passage is not expected to have a significant fiscal impact on the state.
The bill would require that water utilities use the book cost less net salvage of depreciable utility plant retired to be charged in its entirety to the accumulated depreciation account of a utility, consistent with accounting treatment for other electric and gas utilities regulated by the Commission on Environmental Quality and the Pubic Utility Commission. The bill would thus allow a utility to account for the cost of salvaging an asset in book value if there is a loss on the salvage rather than a gain.
The bill's passage is not expected to have a significant fiscal impact on the state.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.Local governments that own utilities would benefit from increasing the amount of utility plant eligible for return and depreciation expense.
Source Agencies: 473 Public Utility Commission of Texas, 582 Commission on Environmental Quality
473 Public Utility Commission of Texas, 582 Commission on Environmental Quality
LBB Staff: JOB, WK, TL
JOB, WK, TL