LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 29, 2001
TO: Honorable Steven Wolens, Chair, House Committee on State
Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3542 by Turner, Sylvester (Relating to the purposes
for which the system benefit fund may be used.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3542, As Introduced: negative impact of $(61,878,943) through *
* the biennium ending August 31, 2003. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(30,198,043) *
* 2003 (31,680,900) *
* 2004 (33,255,900) *
* 2005 (34,909,650) *
* 2006 (36,646,088) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund (System Employees from FY 2001 *
* Benefit Fund) *
* 0001 *
* 2002 $(30,198,043) 4.0 *
* 2003 (31,680,900) 4.0 *
* 2004 (33,255,900) 4.0 *
* 2005 (34,909,650) 4.0 *
* 2006 (36,646,088) 4.0 *
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Fiscal Analysis
The bill would modify subsection 39.903(e) of the Utilities Code by
adding two additional purposes for the system benefit fund (SBF). The law
currently specifies three purposes: programs to assist low-income
electric customers; customer education programs; and the school funding
loss mechanism. The bill would add administrative expenses incurred by
the commission and expenses incurred by the Office of Public Utility
Counsel as additional SBF purposes.
The bill would modify subsection 39.903(f) of the Utilities Code by
providing for grants to energy assistance providers who assist low-income
electric customers in paying their electric bills. This program would
result in additional costs to the System Benefit Fund, capped under
current law, while the bill does not provide for an adjustment of the
statutory cap. The Utilities Code, Section 39.903 limits the size of the
fund by capping the rate per megawatt hour the commission may require
electric utility customers to pay.
The bill would take effect September 1, 2001.
Methodology
The Public Utility Commission estimates the need for four additional FTEs
to administer the provisions of the bill at a cost of $198,043 in 2002
and $180,900 in 2003 and forward.
A similar low income grant program currently administered by the Texas
Department of Housing and Community Affairs (TDHCA) through the federally
funded Low Income Home Energy Assistance Program (LIHEAP) assisted
approximately 5.25 percent of the low income population unable to pay
electric utility bills in fiscal year 2000. The cost of this assistance
was approximately $30 million, with average household assistance of $405.
The eligible population for the system benefit fund discounted electric
bills under current law is estimated by the Public Utility Commission
(PUC) to be 1.4 million households. Assuming the system benefit fund
provided grants for similar assistance as LIHEAP at the same rate of
5.25 percent of the eligible population of 1.4 million, the grants would
assist 73,500 households at a total cost of approximately $30 million
dollars in the first year, with a five percent growth in assistance each
year thereafter.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 473 Public Utility Commission of Texas, 475
Office of Public Utility Counsel
LBB Staff: JK, RB, RT, KM