TO:	Honorable Ken King, Chair, House Committee on State Affairs

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB144 by King (Relating to plans for the management and inspection of distribution poles.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB144, As Introduced: a negative impact of ($3,615,324) through the biennium ending August 31, 2027.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026	($1,807,662)
2027	($1,807,662)
2028	($1,807,662)
2029	($1,807,662)
2030	($1,807,662)

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Change in Number of State Employees from FY 2025
2026	($1,807,662)	12.0
2027	($1,807,662)	12.0
2028	($1,807,662)	12.0
2029	($1,807,662)	12.0
2030	($1,807,662)	12.0

The bill would amend the Utilities Code to require each electric cooperative, electric utility, and municipally owned utility that distributes electric energy to the public to submit to the Public Utility Commission of Texas (PUC) a plan for the management and inspection of distribution poles in the entity's distribution system no later than January 1, 2026.

The bill would require each submitted plan to include a statement of the plan's scope and objective, the roles and responsibilities of the individuals overseeing and executing the plan, a description of the cooperative's or utility's process for training and certification of inspection personnel and a proposed budget for the implementation of the plan.

The bill would require PUC to approve, modify, or reject a plan submitted within 180 days.

The bill would require each entity to submit an update to PUC once every three years detailing the entity's compliance with the plan's objective and the costs of implementing the plan.

The bill would take effect immediately upon a vote of two-thirds of all members of each chamber; otherwise, the bill would take effect on September 1, 2025.

Based on the analysis of the PUC, this estimate assumes the agency would require 12.0 additional full time equivalents (FTE) positions to implement the provisions of the bill. Five Engineer III-V ($115,500 per year with estimated benefits of $32,825) would be needed for the knowledge and expertise on distribution systems. Four Attorneys III ($115,500 per year with estimated benefits of $32,825) would be needed for rulemaking and legal issues. Two Financial Examiners IV-V ($100,000 per year with estimated benefits of $28,420) would be needed to review the proposed budget of submitted plans. Lastly, an Administrative Law Judge ($112,000 per year with estimated benefits of $34,104) would be needed to handle contested case brought before the commission. Other associated costs include $29,393 per year for payroll contributions, travel and other operating expenses.

According to information from the Public Utility Commission, there could be a fiscal impact to local government entities given that municipally owned utilities and electric cooperatives will be required to submit distribution pole plans under this bill. However, this impact cannot be determined as the cost to develop and submit a plan is unknown.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 11, 2025