LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 30, 1999 TO: Honorable J.E. "Buster" Brown, Chair, Senate Committee on Natural Resources FROM: John Keel, Director, Legislative Budget Board IN RE: SB1152 by Bivins (Relating to the authority of the state to obtain electricity and to sell or convey that electricity.), As Introduced ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** Fiscal Analysis The bill would allow the General Land Office (GLO) to sell or convey power directly to a public retail customer, such as a state agency, institution of higher education, public school district, or unit of local government. The bill would provide the state with access to all transmission and distribution system utilities serving public retail customers. These electric utilities would be required to provide services to the state at the lowest applicable rate charged for a similar service to other customers. Methodology Authorizing the GLO to convert in-kind natural gas into electricity to be sold to public entities could result in some savings for electricity costs for state entities. There could also be some additional revenue to the state from the sale of electricity to the Permanent School Fund and the Permanent University Fund. Technology Impact None. Local Government Impact Municipal utilities could experience some loss of revenues if previous public customers choose to buy electricity from the GLO. However, no individual utility would be expected to experience a revenue decline greater than 2.5 percent, and some portion of such losses could be offset by a decrease in costs associated with providing service to fewer customers. School districts could experience some savings in electricity costs if they are able to purchase electricity at lower rates. Source Agencies: LBB Staff: JK, DE, TT, MF