LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 22, 1997
         
         
      TO: Honorable Kenneth Armbrister, Chair            IN RE:  Senate Bill No. 1571
          Committee on State Affairs                              By: Madla
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1571 ( Relating 
to pricing methodology for wheeling.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by SB1571-As Introduced
         
No significant fiscal impact to the State is anticipated.  
         

         
 
The Public Utility Commission may experience a slight increase 
in workload in FYs 1998 and 1999 since implementing the provisions 
of the bill may cause some utilities to request an early review 
of transmission rate cases.
          
No significant fiscal implication to units of local government 
is anticipated.   This bill would narrow the scope of PUC's 
review of the rates of municipal utilities.  PUC has a limited 
appellate review of municipalities basic rates, and there have 
been very few successful appeals to PUC under this authority. 
 PUC also has authority to set transmission rates for municipal 
utilities, and the bill would require PUC to use specific rate-setting 
principles that are typical of municipal utilities in setting 
their rates.  This may result in more certainty in the transmission 
revenues for municipal utilities.  This analysis does not include 
an estimate of any revenue increases or decreases that may result 
from this bill's effect on the rates of municipally-owned utilities.
          
   Source:            Agencies:   473   Public Utility Commission of Texas
                                         
                      LBB Staff:   JD ,BK