LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 9, 2001 TO: Honorable David Sibley, Chair, Senate Committee on Business & Commerce FROM: John Keel, Director, Legislative Budget Board IN RE: HB1902 by Turner, Sylvester (Relating to the purposes for which the system benefit fund may be used.), As Engrossed ************************************************************************** * * * * * No significant fiscal implication to the State is anticipated. * ************************************************************************** Due to funds consolidation legislation enacted by the Legislature in 1999 under HB 3084, the System Benefit Fund authorized under Section 39.903 of the Utilities Code was not established. Revenues are currently deposited to the General Revenue Fund 0001. The bill would not change the current fee or revenue structure and have no effect on state revenues. The bill would prioritize the uses of the system benefit fund to be 1) a 10 percent discount for low income electric customers, 2) energy efficiency programs targeted at low income electric customers, 3) customer education and administrative costs, 4) school funding loss, and 5) a 20 percent discount for low income electric customers. The bill directs the Comptroller to adopt rules and establish procedures to 1) identify school districts directly affected by electric deregulation, 2) assess the effect changing gas prices have on the market value of nuclear power plants, 3) conduct an appraisal of the estimates of each school district with cross-reference to the Public Utility Commission's (PUC) stranded costs estimate, 4) adjust property tax reductions due to electric deregulation for increases in property tax value including new power plants constructed, and 5) ensure reimbursement to school districts is calculated by taking the difference of current year appraisal values and prior year values. The bill would take effect on September 1, 2001. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 473 Public Utility Commission of Texas, 701 Texas Education Agency, 304 Comptroller of Public Accounts, 475 Office of Public Utility Counsel LBB Staff: JK, JO, RT, KM