| TO: | Honorable Phil King, Chair, House Committee on Regulated Industries |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | HB3180 by Turner (Relating to reduced electric customer fees and continuation of low-income programs established as part of electric utility restructuring.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2006 | $0 |
| 2007 | $0 |
| 2008 | $0 |
| 2009 | $0 |
| 2010 | $0 |
| Fiscal Year | Probable Revenue Gain/(Loss) from System Benefit Account 5100 |
Probable Savings/(Cost) from System Benefit Account 5100 |
|---|---|---|
| 2006 | ($113,286,000) | $68,357,715 |
| 2007 | ($123,584,000) | $78,015,210 |
| 2008 | ($123,584,000) | $84,469,277 |
| 2009 | ($123,584,000) | $92,916,220 |
| 2010 | ($123,584,000) | $102,207,842 |
The bill would reduce the nonbypassable utility assessment fee that is deposited to GR Dedicated - System Benefit Account No. 5100 from a maximum of $0.65 to $0.05 per megawatt hour. It would implement a program to assist low-income electric customers through a 20 percent rate reduction by transmission and distribution utilities. The utilities would also be required to provide sufficient funding for targeted energy-efficiency programs developed by the Texas Department of Housing and Community Affairs in an amount equal to funding for such programs in fiscal year 2003, with adjustments for inflation.
The bill would take effect immediately if it receives a two-thirds majority vote in each house, otherwise it would take effect September 1, 2005. The bill would require the Public Utility Commission to adopt rules to implement the program within 91 days of the effective date.
The Comptroller of Public Accounts indicates that the bill would reduce fee revenues deposited to GR Dedicated - System Benefit Account No. 5100 (SBF) by $113,286,000 in fiscal year 2006 and $123,584,000 in each fiscal year thereafter.
The bill would require transmission distribution utilities to provide sufficient funding for a 20 percent rate reduction to low-income electric customers and targeted energy-efficiency programs developed by the Texas Department of Housing and Community Affairs. This analysis presumes that these funds would be held outside the treasury. It is also anticipated that program needs of the SBF would be reduced by $68,357,715 in fiscal year 2006, $78,015,210 in fiscal year 2007, $84,469,277 in fiscal year 2008, $92,916,220 in fiscal year 2009, and 102,207,842 in fiscal year 2010.
| Source Agencies: | 304 Comptroller of Public Accounts, 473 Public Utility Commission of Texas
|
| LBB Staff: | JOB, JRO, WP, RB
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