LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION

April 26, 2013

TO:	Honorable Byron Cook, Chair, House Committee on State Affairs
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	SB1364 by Schwertner (Relating to the computation of an electric utility's income taxes.), As Engrossed

No significant fiscal implication to the State is anticipated.

The bill would amend the Utilities Code to require a utility to include income tax benefits related to expenses included in utility rates and investments included in the utility base rate in the computation of the utility's income tax. The bill would also eliminate the use of a consolidated tax savings adjustment in the determination of a utility's income tax expense.

Based on information provided by the Public Utility Commission, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

473 Public Utility Commission of Texas

LBB Staff:

UP, RB, ED, AG