LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 17, 1995 TO: Honorable Curtis Seidlits, Chair IN RE: Senate Bill No. Committee on State Affairs 1227, House of Representatives as engrossed Austin, Texas By: Armbrister FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 1227 (Relating to the regulation of electric cooperative corporations.) this office has determined the following: The bill would amend the Public Utility Regulatory Act to allow certain electric cooperatives to opt for rate deregulation if a majority of the coop members elect to deregulate. The Public Utility Commission would administratively certify that the coop is deregulated for ratemaking purposes. The bill's provision would not limit the commission's jurisdiction to regulate the distribution cooperatives under other provisions of the Public Utility Regulatory Act. Implementation of the bill's provisions would result in savings from functions not performed beginning in fiscal year 1997. The probable fiscal implication of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Fiscal Probable Change in Year Cost/(Savings) Number of State from General Employees from Revenue Fund 001 FY 1995 1996 $0 .0 1997 (62,339) (1.0) 1998 (93,508) (2.0) 1999 (124,677) (2.5) 2000 (124,677) (2.5) Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. The fiscal implication to units of local government cannot be determined. Source: Public Utility Commission LBB Staff: JK, BR, DF