LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 11, 2025 TO: Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1789 by Schwertner (relating to electric service quality and reliability.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SB1789, Committee Report 1st House, Substituted: a negative impact of ($1,815,310) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026($907,655)2027($907,655)2028($907,655)2029($907,655)2030($907,655)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20252026($907,655)4.52027($907,655)4.52028($907,655)4.52029($907,655)4.52030($907,655)4.5 Fiscal AnalysisThis bill would amend the Utilities Code to require the Public Utility Commission of Texas (PUC) to establish structural integrity standards for transmission and distribution poles that apply to electric utilities, electric cooperatives, and municipally owned utilities. The standards must require pole inspections, establish a classification system, account for geographic and weather characteristics of the state, consider national guidelines and the characteristics of electric utility, municipally owned utility, and electric cooperative transmission and distribution systems throughout the state. Each entity must submit an annual report no later than May 1 of each year of their pole maintenance schedule and inspection results to PUC. The bill would modify the System Average Interruption Duration Index (SAIDI)/ System Average Interruption Frequency Index (SAIFI) threshold value for utilities' feeders and directs PUC to consider the duration of each interruption in the feeder's service in taking service quality enforcement action.The bill would take effect on September 1, 2025.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 11, 2025
TO: Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1789 by Schwertner (relating to electric service quality and reliability.), Committee Report 1st House, Substituted
TO: Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1789 by Schwertner (relating to electric service quality and reliability.), Committee Report 1st House, Substituted
Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce
Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1789 by Schwertner (relating to electric service quality and reliability.), Committee Report 1st House, Substituted
SB1789 by Schwertner (relating to electric service quality and reliability.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB1789, Committee Report 1st House, Substituted: a negative impact of ($1,815,310) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1789, Committee Report 1st House, Substituted: a negative impact of ($1,815,310) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
2026 ($907,655)
2027 ($907,655)
2028 ($907,655)
2029 ($907,655)
2030 ($907,655)
All Funds, Five-Year Impact:
2026 ($907,655) 4.5
2027 ($907,655) 4.5
2028 ($907,655) 4.5
2029 ($907,655) 4.5
2030 ($907,655) 4.5
Fiscal Analysis
This bill would amend the Utilities Code to require the Public Utility Commission of Texas (PUC) to establish structural integrity standards for transmission and distribution poles that apply to electric utilities, electric cooperatives, and municipally owned utilities. The standards must require pole inspections, establish a classification system, account for geographic and weather characteristics of the state, consider national guidelines and the characteristics of electric utility, municipally owned utility, and electric cooperative transmission and distribution systems throughout the state. Each entity must submit an annual report no later than May 1 of each year of their pole maintenance schedule and inspection results to PUC. The bill would modify the System Average Interruption Duration Index (SAIDI)/ System Average Interruption Frequency Index (SAIFI) threshold value for utilities' feeders and directs PUC to consider the duration of each interruption in the feeder's service in taking service quality enforcement action.The bill would take effect on September 1, 2025.
The bill would take effect on September 1, 2025.
Methodology
Based on the analysis of the PUC, this estimate assumes the agency would require 4.5 additional full time equivalents (FTE) positions to implement the provisions of the bill.An Attorney III ($115,500 per year with estimated benefits of $32,825) would be needed for initial and ongoing rule making and updating.An additional 1.5 Engineers III-IV ($115,500 per year with estimated benefits of $32,825) would be needed to provide subject-matter expertise in the rulemaking process, to participate in the process to bring on a contractor to assist with the annual reviews, to monitor and provide oversight to the contractor, and to inventory issues and questions discovered during the report reviews.Lastly, an additional Attorney III ($115,500 per year with estimated benefits of $32,825) and an Investigator IV-VI ($90,000 per year with estimated benefits of $25,578) would be needed for increased enforcement responsibilities with more fines being assessed against utilities, and to ensure utilities' adherence to the standards laid out by rule. Other associated costs include $10,789 per year for payroll contributions, travel, and other operating expenses.According to the PUC, the agency would need an additional $250,000 per year for a contractor to review an estimated 165 annual reports.
An Attorney III ($115,500 per year with estimated benefits of $32,825) would be needed for initial and ongoing rule making and updating.
An additional 1.5 Engineers III-IV ($115,500 per year with estimated benefits of $32,825) would be needed to provide subject-matter expertise in the rulemaking process, to participate in the process to bring on a contractor to assist with the annual reviews, to monitor and provide oversight to the contractor, and to inventory issues and questions discovered during the report reviews.
Lastly, an additional Attorney III ($115,500 per year with estimated benefits of $32,825) and an Investigator IV-VI ($90,000 per year with estimated benefits of $25,578) would be needed for increased enforcement responsibilities with more fines being assessed against utilities, and to ensure utilities' adherence to the standards laid out by rule. Other associated costs include $10,789 per year for payroll contributions, travel, and other operating expenses.According to the PUC, the agency would need an additional $250,000 per year for a contractor to review an estimated 165 annual reports.
Technology
PUC anticipates information technology expenditures of $12,150 per year.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 473 Public Utility Commission of Texas
473 Public Utility Commission of Texas
LBB Staff: b > td > JMc, RStu, GDZ, JBel
JMc, RStu, GDZ, JBel