Honorable John Otto, Chair, House Committee on Appropriations
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB1101 by Turner, Sylvester (relating to extending the period over which the balance of the system benefit fund is to be eliminated.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB1101, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2017.
To the extent that costs associated with the bill would be charged to the balances of the General Revenue-Dedicated System Benefit Account 5100, there would be a negative certification effect on General Revenue Related Funds.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2016
$0
2017
$0
2018
$0
2019
$0
2020
$0
Fiscal Year
Probable (Cost) from System Benefit Account 5100
2016
($226,696,539)
2017
$0
2018
$0
2019
$0
2020
$0
Fiscal Analysis
This bill would amend the Utilities Code relating to extending the period over which the balance of the System Benefit Fund is to be eliminated.
This bill would extend the expiration date of Section 39.9039 of the Utilities Code relating to the System Benefit Fund and the Low-Income Discount program through fiscal year 2017. This bill would increase the allowable discount rate that the Public Utility Commission (PUC) can provide and the allowable time in which PUC may provide the discount rate in fiscal years 2016 and 2017.
This bill would take effect immediately upon receiving a vote of two-thirds of all members elected to the House and Senate or otherwise on September 1, 2015.
Methodology
Based on the Comptroller of Public Account's 2016-17 Biennial Revenue Estimate, the fiscal year 2015 ending balance of the System Benefit Fund is projected to be $328,051,000. The agency anticipates that current provisions of Section 39.9039 of the Utilities Code allows for the use of $101,354,461 in fiscal year 2016. With the removal of the discount rate and time restrictions, it is anticipated that the agency will expend the remaining $226,696,539 in fiscal year 2016 in order to implement the provisions of the bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
473 Public Utility Commission of Texas, 304 Comptroller of Public Accounts