LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 17, 1997
         
         
      TO: Honorable Steven Wolens, Chair            IN RE:  Senate Bill No. 965, As Engrossed
          Committee on State Affairs                              By: Armbrister
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB965 ( Relating 
to the powers and duties of the Public Utility Commission of 
Texas. ) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB965-As Engrossed
         
No significant fiscal implication to the State is anticipated. 
 
         

         
 
The bill would amend the Public Utility Regulatory Act of 1995 
(PURA) to amend the powers and duties of the Public Utility 
Commission (PUC) and establish a statutory framework to implement 
various proposals from the Texas Performance Review (TPR) report, 
"Light Years: The Future of the Public Utility Commission on 
Texas."

Section 1 of the bill would amend Section 1.002 of 
PURA to state that PUC shall promote public awareness of changes 
in the electric and telecommunications markets, provide customers 
with information necessary to make informed choices about available 
options, and ensure that customers have an adequate understanding 
of their rights.

Section 10 of the bill would add Sections 
1.105 through 1.109 to PURA.  Section 1.105 would require PUC 
to adopt procedures authorizing disposition of contested cases 
by use of proposed orders.  Section 1.106 would require PUC 
to adopt procedures to dispose of contested cases by use of 
staff reports (detailing the information and evidence the staff 
would have presented in a contested case hearing).  Section 
1.107 would require PUC to adopt procedures to use alternative 
dispute resolution (ADR) to resolve a pending issue or proceeding. 
 Section 1.108 would allow PUC to establish and ensure service 
quality and reliability and customer service and protection 
for both electric and telephone providers.  Existing PUC staff 
would be adjusted to accommodate the increased workload created 
by Section 1.108 without additional cost to the state.  Section 
1.109 would clarify PUC's authority to educate and provide information 
to consumers and providers of electric and telecommunications 
services.

Sections 13 and 14 of the bill would amend Sections 
1.401 and 2.003 of PURA to require PUC to submit a report to 
the legislature, not later than January 15 of each odd-numbered 
year, on complaints received from consumers during the previous 
two years.  This activity would be absorbed using existing PUC 
resources.

Section 22 of the bill would require PUC and the 
Comptroller to conduct and prepare a joint study, for submission 
not later than January 15, 1999, on the structure of the gross 
receipts tax and the potential effect of deregulation on the 
revenue generated by this tax during the next ten years.  This 
workload could be absorbed using current PUC and Comptroller 
resources.

Note: Sections 1, 10, 13, and 14 of the bill would 
establish a framework to implement TPR recommendations related 
to strengthening consumer affairs functions and case streamlining. 
 The Comptroller estimates that if these TPR recommendations 
are implemented there would be a slight net savings to General 
Revenue because increased staffing and communications requirements 
needed to perform consumer education and consumer complaint 
functions would be offset by reduced hearings charges as a result 
of the use of proposed orders and ADR.  PUC's estimate of the 
TPR report's costs are higher and its estimate of savings are 
lower than the Comptroller's.  PUC has estimated during the 
appropriations process that the net cost of additional resources 
needed to strengthen its consumer affairs functions to fully 
implement the TPR recommendations would be $391,200 in FY 1998 
and $332,000 in FY 1999.  Because these estimates relate to 
increasing resources to perform functions generally authorized 
under current law, they are not included in this analysis.
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         360   State Office of Administrative Hearings
                                         473   Public Utility Commission of Texas
                                         475   Office of the Public Utility Counsel
                                         
                      LBB Staff:   JK ,JD ,BK