LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 15, 2015 TO: Honorable Troy Fraser, Chair, Senate Committee on Natural Resources & Economic Development FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1945 by Fraser (relating to electricity service provided by municipally owned utilities.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. This bill would amend the Utilities Code relating to establishing competitive retail electricity options for customers served by certain municipally owned utilities. Based on information provided by the Public Utility Commission and the Office of Public Utility Counsel, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. Local Government Impact There would a significant cost to certain municipality owned utilities to comply with the provisions of the bill. Austin Energy reported that there would be total cost of $194,825,000, including additional staff, replacement meters, software, system upgrades, and training in fiscal year 2016. In fiscal year 2017, there would be a total cost of $42,340,000. Austin Energy also anticipates a revenue loss of $80,000,000 annually due to customers switching retail providers. According to Austin Energy, the City of Austin would lose $9,600,000 in revenue annually. Source Agencies:473 Public Utility Commission of Texas, 475 Office of Public Utility Counsel LBB Staff: UP, SZ, NV, JLi, KVe
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
April 15, 2015
TO: Honorable Troy Fraser, Chair, Senate Committee on Natural Resources & Economic Development FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1945 by Fraser (relating to electricity service provided by municipally owned utilities.), Committee Report 1st House, Substituted
TO: Honorable Troy Fraser, Chair, Senate Committee on Natural Resources & Economic Development
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB1945 by Fraser (relating to electricity service provided by municipally owned utilities.), Committee Report 1st House, Substituted
Honorable Troy Fraser, Chair, Senate Committee on Natural Resources & Economic Development
Honorable Troy Fraser, Chair, Senate Committee on Natural Resources & Economic Development
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB1945 by Fraser (relating to electricity service provided by municipally owned utilities.), Committee Report 1st House, Substituted
SB1945 by Fraser (relating to electricity service provided by municipally owned utilities.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
This bill would amend the Utilities Code relating to establishing competitive retail electricity options for customers served by certain municipally owned utilities. Based on information provided by the Public Utility Commission and the Office of Public Utility Counsel, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
Local Government Impact
There would a significant cost to certain municipality owned utilities to comply with the provisions of the bill. Austin Energy reported that there would be total cost of $194,825,000, including additional staff, replacement meters, software, system upgrades, and training in fiscal year 2016. In fiscal year 2017, there would be a total cost of $42,340,000. Austin Energy also anticipates a revenue loss of $80,000,000 annually due to customers switching retail providers. According to Austin Energy, the City of Austin would lose $9,600,000 in revenue annually.
Source Agencies: 473 Public Utility Commission of Texas, 475 Office of Public Utility Counsel
473 Public Utility Commission of Texas, 475 Office of Public Utility Counsel
LBB Staff: UP, SZ, NV, JLi, KVe
UP, SZ, NV, JLi, KVe