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
  
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*  No significant fiscal implication to the State is anticipated.        *
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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