Honorable Phil King, Chair, House Committee on Regulated Industries
John S. O'Brien, Deputy Director, Legislative Budget Board
HB1777 by King, Phil (Relating to regulation of the electric power market.), As Introduced
|Fiscal Year||Probable Net Positive/(Negative) Impact to General Revenue Related Funds|
|Fiscal Year||Probable Savings/(Cost) from
System Benefit Account
The bill would require the Electric Reliability Council of Texas (ERCOT) to perform wholesale market monitoring through a contract with a private company selected by the Public Utility Commission (PUC).
The bill would also provide the PUC authority to lower the percentage discount of the low-income discount program below 10 percent if the System Benefit Fund (SBF) fee is set at 65 cents per megawatt hour and the PUC determines that the SBF is still insufficient to fund the 10 percent rate reduction.
The bill would take effect September 1, 2005.
It is anticipated that requiring the Electric Reliability Council of Texas to perform wholesale maket monitoring through a contract with a private company selected by the Public Utility Commission (PUC) would eliminate the need for the PUC to contract with a private company to perform wholesale maket monitoring at a rate of $1.5 million each fiscal year from the General Revenue - Dedicated System Benefit Account No. 5100, which is appropriated in the current General Appropriations Act.
For the purpose of this analysis, it is assumed the System Benefit Fund, set at 65 cents per megawatt hour, would be sufficient to fund the low-income discount program at the 10 percent rate. Therefore, it is not anticipated that allowing the PUC to lower the discount would generate a fiscal impact.
The Public Utility Commission indicates that all other costs associated with the bill could be absorbed within existing resources.
116 Sunset Advisory Commission, 473 Public Utility Commission of Texas, 475 Office of Public Utility Counsel
JOB, JRO, MW, RB