Fiscal Note - SB 0461 - Electric Utilities May Recover Fuel and Purchased Energy Costs
L.R. NO. 1758-01
BILL NO. SB 461
SUBJECT: Utilities: Public Service Commission
TYPE: Original
DATE: March 31, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Public Service
Commission Fund ($212,538) ($222,506) ($228,257)
Total Estimated
Net Effect on All
State Funds** ($212,538) ($222,506) ($228,257)
** The net effect to the Public Service Commission Fund could be $0 if the
PSC increases the PSC assessment and appropriation is made.
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Economic Development - Office of Public
Counsel assume that this proposal would have no fiscal impact to their
agency.
Officials of the Department of Economic Development - Public Service
Commission (PSC) assume this proposal would require the PSC to review various
fuel plans, fuel costs, operating reliability considerations, fuel invoices,
and fuel contracts. PSC officials stated that they would request one (1)
Regulatory Economist III, one (1) Utility Regulatory Auditor III, one (1)
Utility Regulatory Engineer I/II, and one (1) Legal Counsel and related
expense and equipment to implement this proposal. The Regulatory Economist
III would review economics of various fuel plans and develop weather
variables. The Utility Regulator Engineer I/II would run production cost
model, review operating reliability considerations and inputs for rating
capacities and heat rates, and administer and develop the tariff language
necessary to provide for a fuel adjustment clause. The Utility Regulatory
Auditor III review fuel invoices, fuel contracts, accounting of fuel costs,
etc. The Legal Counsel would prepare staff in hearings before the
Commission, attend public hearings and represent the Commission in court
cases. Oversight assumes PSC would locate new FTE in existing facilities and
therefore, has not included additional rental costs as a result of this
proposal.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
PUBLIC SERVICE COMMISSION FUND
Costs-Public Service Commission (PSC)
Personal Service (4 FTE) ($116,722) ($143,626) ($147,216)
Fringe Benefits (33,301) (40,976) (42,001)
Expense and Equipment (62,515) (37,904) (39,040)
Total Cost - PSC ($212,538) ($222,506) ($228,257)
ESTIMATED NET EFFECT TO
PUBLIC SERVICE COMMISSION
FUND ($212,538) ($222,506) ($228,257)
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
This proposal would allow electrical corporations to recover, the cost of
fuel and purchased energy incurred for the purpose of generating and
purchasing electricity and steam. The Public Service Commission would have
the authority to approve rate schedules after hearing.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Economic Development - Public Service Commission
Department of Economic Development - Office of Public Counsel
This Fiscal Note is not an official copy and should not be quoted or cited.