LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 9, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 690
Committee on State Affairs By: Armbrister
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB690 ( Relating
to state government's purchasing and use of electricity.) this
office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB690-As Introduced
Implementing the provisions of the bill would result in a net
impact of $0 to General Revenue Related Funds through the biennium
ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would amend Section 447.008 of the Government Code
relating to the authority of the state energy management center
at the General Services Commission (GSC). The bill would authorize
the center to negotiate rates for state agency electric services.
Electric service contracts could be negotiated by the center
for each state agency, or under a single contract on behalf
of several state agencies.
The Office of the Attorney General
(OAG) would be empowered to represent the energy management
center as an intervenor in Public Utility Commission proceedings
related to electric utility industry deregulation. The OAG
and the center would cooperate in monitoring efforts to deregulate
the electric utility industry and in reporting on the ways deregulation
would affect state government as a purchaser of electricity.
The
energy management center would be directed to analyze electricity
rates and usage to determine ways in which the state could lower
its utility costs. The PUC and other state agencies would be
required to assist the center in obtaining the information it
needs to perform this analysis.
Methodolgy
The General Services Commission anticipates that it would need
four additional FTEs to perform the functions proposed by the
bill: a Director of Programs II, an Attorney V, an Administrative
Technician I, and a Utility Specialist I. The Commission expects
to be able to use oil overcharge money, which is paid out of
a General Revenue dedicated account, for these functions.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Change in Number
Savings/(Cost) of State
from Oil Employees from
Overcharge FY 1997
Account/
GR-Dedicated
5005
1998 ($200,593) 4.0
1998 (200,593) 4.0
2000 (200,593) 4.0
2001 (200,593) 4.0
2002 (200,593) 4.0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 0
2001 0
2002 0
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 473 Public Utility Commission of Texas
303 General Services Commission
302 Office of the Attorney General
LBB Staff: JK ,JD ,RN