LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

March 30, 2009

TO:	Honorable Burt R. Solomons, Chair, House Committee on State Affairs
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB3406 by Swinford (Relating to certificates of convenience and necessity.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend Sections 37.051(a), 37.053(a), and 37.055 of the Utilities Code to replace the terms "utility" and "public utility" with the term "person." The bill would require the Public Utility Commission (PUC) to grant a certificate to a person operating a facility used solely for the transmission of electricity. The bill would also exempt a person granted a certificate under Section 37.051(d) from serving every customer in a certified area and from providing continuous and adequate service in that area.

The bill would require the PUC to adopt rules to conform existing rules to the bill's provisions. The PUC indicates it could absorb the costs associated with the bill within its current resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

473 Public Utility Commission of Texas

LBB Staff:

JOB, KJG, ES