Honorable Byron Cook, Chair, House Committee on State Affairs
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB776 by Fraser (Relating to the operations of a municipally owned utility or municipal power agency; affecting a provision that is subject to criminal penalties; providing authority to issue bonds.), As Engrossed
No significant fiscal implication to the State is anticipated.
The bill would amend the Utilities Code relating to the operations of a municipally owned utility or municipal power agency; affecting a provision that is subject to criminal penalties; providing authority to issue bonds.
Based on information provided by the Public Utility Commission and the Office of Public Utility Counsel, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. The Comptroller of Public Accounts indicates there would be a small impact on utility taxes; however the effect is not expected to be significant.
Local Government Impact
According to the Texas Public Power Association, municipally owned electric utilities (MOUs) would incur additional costs for proceedings before the Public Utility Commission. These costs would be related to attorney's, engineer's, and consultant's fees, environmental assessments, and survey costs for multiple routings associated with proceedings for certificates of convenience and necessity for the construction of transmission lines outside the MOU's service territory.
Source Agencies:
304 Comptroller of Public Accounts, 473 Public Utility Commission of Texas, 475 Office of Public Utility Counsel