LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 13, 2009 TO: Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB2349 by Ogden (Relating to distributed generation of electric power.), As Introduced No significant fiscal implication to the State is anticipated. The bill would establish a definition of a distributed generation facility (DGF) and would authorize DGF owners to sell power at wholesale rates. The bill would require electric utilities and retail electric providers to purchase DGF generated power and would authorize the Public Utility Commission to establish reasonable wholesale rates. The bill would require the Public Utility Commission to adopt rules to establish simplified filing requirements for DGFs and would broaden PUC jurisdiction over municipal utilities and electric cooperatives for the purposes of pricing of energy supplied by DGF. Based on the analysis of the PUC, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:473 Public Utility Commission of Texas LBB Staff: JOB, JRO, ES LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 13, 2009 TO: Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB2349 by Ogden (Relating to distributed generation of electric power.), As Introduced TO: Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: SB2349 by Ogden (Relating to distributed generation of electric power.), As Introduced Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board SB2349 by Ogden (Relating to distributed generation of electric power.), As Introduced SB2349 by Ogden (Relating to distributed generation of electric power.), As Introduced No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would establish a definition of a distributed generation facility (DGF) and would authorize DGF owners to sell power at wholesale rates. The bill would require electric utilities and retail electric providers to purchase DGF generated power and would authorize the Public Utility Commission to establish reasonable wholesale rates. The bill would require the Public Utility Commission to adopt rules to establish simplified filing requirements for DGFs and would broaden PUC jurisdiction over municipal utilities and electric cooperatives for the purposes of pricing of energy supplied by DGF. Based on the analysis of the PUC, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. The bill would establish a definition of a distributed generation facility (DGF) and would authorize DGF owners to sell power at wholesale rates. The bill would require electric utilities and retail electric providers to purchase DGF generated power and would authorize the Public Utility Commission to establish reasonable wholesale rates. The bill would require the Public Utility Commission to adopt rules to establish simplified filing requirements for DGFs and would broaden PUC jurisdiction over municipal utilities and electric cooperatives for the purposes of pricing of energy supplied by DGF. Based on the analysis of the PUC, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 473 Public Utility Commission of Texas 473 Public Utility Commission of Texas LBB Staff: JOB, JRO, ES JOB, JRO, ES