LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 12, 2025 TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2160 by Flores (Relating to the jurisdiction of the Public Utility Commission of Texas over municipally owned utility water and sewer service outside the corporate limits of a municipality.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB2160, As Introduced: a negative impact of ($3,006,896) 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($1,503,448)2027($1,503,448)2028($1,503,448)2029($1,503,448)2030($1,503,448)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20252026($1,503,448)11.02027($1,503,448)11.02028($1,503,448)11.02029($1,503,448)11.02030($1,503,448)11.0 Fiscal AnalysisThe bill would amend the Water Code to grant the Public Utility Commission of Texas (PUC) original jurisdiction over the rates, operations, and services of municipally owned utilities (MOUs) serving outside the corporate limits of a municipality.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 12, 2025
TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2160 by Flores (Relating to the jurisdiction of the Public Utility Commission of Texas over municipally owned utility water and sewer service outside the corporate limits of a municipality.), As Introduced
TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB2160 by Flores (Relating to the jurisdiction of the Public Utility Commission of Texas over municipally owned utility water and sewer service outside the corporate limits of a municipality.), As Introduced
Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs
Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB2160 by Flores (Relating to the jurisdiction of the Public Utility Commission of Texas over municipally owned utility water and sewer service outside the corporate limits of a municipality.), As Introduced
SB2160 by Flores (Relating to the jurisdiction of the Public Utility Commission of Texas over municipally owned utility water and sewer service outside the corporate limits of a municipality.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB2160, As Introduced: a negative impact of ($3,006,896) 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 SB2160, As Introduced: a negative impact of ($3,006,896) 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 ($1,503,448)
2027 ($1,503,448)
2028 ($1,503,448)
2029 ($1,503,448)
2030 ($1,503,448)
All Funds, Five-Year Impact:
2026 ($1,503,448) 11.0
2027 ($1,503,448) 11.0
2028 ($1,503,448) 11.0
2029 ($1,503,448) 11.0
2030 ($1,503,448) 11.0
Fiscal Analysis
The bill would amend the Water Code to grant the Public Utility Commission of Texas (PUC) original jurisdiction over the rates, operations, and services of municipally owned utilities (MOUs) serving outside the corporate limits of a municipality.
Methodology
Based on the analysis of the PUC, this estimate assumes the agency would require 11.0 additional full time equivalents (FTE) positions to implement the provisions of the bill. Four Attorney III-IV ($115,500 per year with estimated benefits of $32,825), Two Legal Assistant II-IV ($80,000 per year with estimated benefits of $29,841), Two Engineer III-V($115,500 per year with estimated benefits of $32,825), and two Financial Examiner IV-V ($105,000 per year with estimated benefits of $29,841) would be needed for an anticipated increase in the number of rate appeal contested cases. Lastly, an Investigator III-IV ($60,000 per year with estimated benefits of $17,052) would be needed to process in-bound calls and informal complaints from customers. Other associated costs include $21,210 per year for payroll contributions, travel and other operating expenses.
Technology
PUC anticipates information technology expenditures of $29,700 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, FV, GDZ, JBel
JMc, FV, GDZ, JBel