LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION
 
May 7, 2007

TO:
Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB1386 by King, Phil (Relating to regulation of the decommissioning costs of certain nuclear-powered commercial electric generating units.), As Engrossed

No significant fiscal implication to the State is anticipated.

The bill would amend the Utilities Code relating to regulation of the decommissioning costs of certain nuclear-powered commercial electric generation units. The bill would require the Public Utility Commission (PUC) to establish the annual decommissioning funding for each nuclear generating unit over the span of the unit’s operating license period, as established by the National Regulatory Commission (NRC). 

The bill would require the PUC to conduct a proceeding to review the balance of each nuclear decommissioning trust and the projected amount of annual decommissioning funding at least once every three years, and at the conclusion of the proceeding, require the PUC to revise the annual decommissioning funding for a particular nuclear power plant. 

The bill would require the PUC to revoke a power generation company’s registration if it fails to remit the balance of the annual decommissioning funding to the nuclear decommissioning trust and require the PUC, by rule, to provide guidelines for fund administrators and to ensure compliance with the requirements of the NRC. 

The bill would require the PUC, by rule, to ensure adequate funds are deposited into the nuclear decommissioning trust on an annual basis, deposited funds are used in an appropriate manner, and funds are restricted specifically for the purpose of decommissioning the nuclear generating unit, including if the trust or nuclear generating unit is transferred to another person. 

The bill would require the PUC to determine the manner in which a funding shortfall in the cost of decommissioning a nuclear generating plant can be recovered from retail electric customers.  This bill would require a power generation company that owns an operational nuclear generation unit to repay the costs incurred by the retail electric customers during the default period and authorize the PUC to determine the time period for the repayment.

It is estimated that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.

This bill would take effect September 1, 2007.


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
473 Public Utility Commission of Texas
LBB Staff:
JOB, JRO, TGl