LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION March 15, 2021 TO: Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB566 by Buckingham (Relating to electricity service provided by certain municipally owned utilities.), As Introduced No significant fiscal implication to the State is anticipated. The Public Utility Commission anticipates that the costs associated with the bill's provisions relating to electricity service provided by certain municipally owned utilities could be absorbed using existing resources. Local Government ImpactThe City of Austin and Austin Energy anticipate the bill would result in continual review of Austin Energy rates, rather than as a result of a trigger mechanism such as a rate change. Austin Energy anticipates a significant fiscal impact of $9.37 million in FY 2022, $7.06 million in FY 2023, $8.05 million in FY 2024, $8.74 million in FY 2025, and $9.64 million in FY 2025. The anticipated impact is due to new staff required, upgrading accounting software and support, outside consultants and attorneys, marketing and customer relations costs, an increased cost of debt due to a downgraded rating, and on-going staff costs excluding new staff. Source Agencies: b > td > 473 Public Utility Commission of Texas LBB Staff: b > td > JMc, SZ, MB, RRe, AF
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
March 15, 2021
TO: Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB566 by Buckingham (Relating to electricity service provided by certain municipally owned utilities.), As Introduced
TO: Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB566 by Buckingham (Relating to electricity service provided by certain municipally owned utilities.), As Introduced
Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce
Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB566 by Buckingham (Relating to electricity service provided by certain municipally owned utilities.), As Introduced
SB566 by Buckingham (Relating to electricity service provided by certain municipally owned utilities.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The Public Utility Commission anticipates that the costs associated with the bill's provisions relating to electricity service provided by certain municipally owned utilities could be absorbed using existing resources.
Local Government Impact
The City of Austin and Austin Energy anticipate the bill would result in continual review of Austin Energy rates, rather than as a result of a trigger mechanism such as a rate change. Austin Energy anticipates a significant fiscal impact of $9.37 million in FY 2022, $7.06 million in FY 2023, $8.05 million in FY 2024, $8.74 million in FY 2025, and $9.64 million in FY 2025. The anticipated impact is due to new staff required, upgrading accounting software and support, outside consultants and attorneys, marketing and customer relations costs, an increased cost of debt due to a downgraded rating, and on-going staff costs excluding new staff.
Source Agencies: b > td > 473 Public Utility Commission of Texas
473 Public Utility Commission of Texas
LBB Staff: b > td > JMc, SZ, MB, RRe, AF
JMc, SZ, MB, RRe, AF