LEGISLATIVE BUDGET BOARD

                              Austin, Texas

                    FISCAL NOTE, 77th Regular Session

                              March 31, 2001

          TO:  Honorable Steven Wolens, Chair, House Committee on State

               Affairs

        FROM:  John Keel, Director, Legislative Budget Board

       IN RE:  HB3245  by Hilderbran (Relating to the duties of a

               municipally owned electric utility when operating outside

               the municipality.), As Introduced

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

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Local Government Impact

No significant fiscal implication to units of local government is

anticipated. Municipally owned electric utility companies (ten exist

within the state) would incur additional costs for proceedings before

the Public Utility Commission. These costs would be related to

attorneys' fees, environmental assessments and survey costs for those

contested proceedings for certificates of convenience and necessity. The

Cities of Austin and San Antonio estimated a cost of $100,000 per

contested proceeding, with an average of two proceedings per year.

Source Agencies:   473   Public Utility Commission of Texas, 475

                   Office of Public Utility Counsel

LBB Staff:         JK, RB, KM