Honorable John Otto, Chair, House Committee on Appropriations
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB3552 by Parker (Relating to enhancing the security of the electric grid, making an appropriation.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3552, As Introduced: a negative impact of ($25,000,000) through the biennium ending August 31, 2017.
The bill would make an appropriation of $25 million in General Revenue to the Public Utility Commission beginning in fiscal year 2016 through the biennium ending August 31, 2017.
Fiscal Year
Appropriation out of General Revenue Fund 1
2016
$12,500,000
2017
$12,500,000
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2016
($12,500,000)
2017
($12,500,000)
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2016
($12,500,000)
2017
($12,500,000)
2018
$0
2019
$0
2020
$0
Fiscal Year
Probable (Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2015
2016
($12,500,000)
1.0
2017
($12,500,000)
1.0
2018
$0
0.0
2019
$0
0.0
2020
$0
0.0
Fiscal Analysis
This bill would amend the Utilities Code relating to enhancing the security of the electric grid, making an appropriation.
The bill allows for the creation and administration of a grant program at the Public Utility Commission (PUC) to fund efforts to increase the security of the electric grid. The bill appropriates $25 million of General Revenue in the 2016-17 biennium to PUC to cover expenses for security audits, reimbursements to electric utilities for investments made as a result of this program, and related consultants, travel, and administrative expenses.
The enactment of this bill is contingent upon the passage of House Bill 2289 of the 84th Legislature, Regular Session, 2015, or similar legislation that creates the Electric Grid Security Advisory Committee.
This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2015.
Methodology
Based on information provided by PUC, it is estimated that implementing the provisions of the bill would require 1.0 additional full-time equivalent (FTEs) position to administer and oversee the grant program. The agency estimates that this would require recurring costs of $60,000 in salaries and $24,828 in related support and benefit costs. It is assumed that these expenses would be paid from the appropriation made to the grant program. The remaining $24,830,344 would go towards other authorized uses outlined in the legislation.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
473 Public Utility Commission of Texas, 475 Office of Public Utility Counsel