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