COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3470-10
Bill No.: Perfected SS for SCS for SB 900
Subject: Education, Elementary and Secondary: Utilities
Type: Original
Date: April 17, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Local Government | $0 to Unknown | $0 to Unknown | $0 to Unknown |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
AGGREGATE PURCHASING OF NATURAL GAS
Officials of the Department of Elementary and Secondary Education, the Department of Economic Development - Public Service Commission and the Department of Economic Development - Office of the Public Counsel stated, in responses to similar proposals, that they would not request additional resources due to this proposal.
Officials of the Cooperating School Districts of Greater St. Louis noted, in their response to a similar proposal, that the ten districts participating in its Energy Consortium have realized a total savings of $626,272 since November of 1999.
ALLOCATION OF GAS AND PIPELINE COMPANY REFUNDS AND PENALTIES
Officials of Department of Economic Development - Public Service Commission anticipated, in response to a similar proposal, that the proposal would cause very few additional cases and that they could handle those few cases with existing resources.
Officials of Department of Economic Development - Office of the Public Counsel assumed, in response to similar proposals, that the proposal would significantly affect their agency.
| FISCAL IMPACT - State Government | FY 2003 | FY 2004 | FY 2005
(11 Mo.) |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2003 | FY 2004 | FY 2005
(11 Mo.) |
| SCHOOL DISTRICTS | |||
| Savings - Reduced Natural Gas Costs | $0 to Unknown | $0 to Unknown | $0 to Unknown |
| ESTIMATED NET EFFECT ON SCHOOL DISTRICTS | $0 to Unknown | $0 to Unknown | $0 to Unknown |
FISCAL IMPACT - Small Business
Small businesses which are gas companies could be affected by this proposal.
DESCRIPTION
This proposal would allow school districts to aggregate purchases natural gas through a not-for- profit school association. Missouri gas corporations would file a set of small volume transportation schedules or tariffs applicable the first year to public school districts and applicable to all school districts the second and third years, by August 1, 2002. The proposal would establish requirements for the schedules filed with the Public Service
Commission.
The not-for-profit school association would make annual reports, beginning by September 1, 2003, to the Public Service Commission on the use of aggregate purchases of natural gas by school districts. The Public Service Commission would, in turn make reports to the legislature. Gas companies would make annual reports, beginning by June 1, 2003, to the Public Service Commission of their revenues and costs due to aggregate natural gas purchases.
This proposal would allow the Public Service Commission to, upon notice and after an on-the-record hearing, allocate penalties from gas and pipeline companies as it determines to be in the public interest.
Currently, the Public Service Commission allocates refunds and penalties from gas and pipeline companies equally among all affected customers.
This act contains an emergency clause.
The aggregate purchasing of natural gas provisions of the act would terminate on June 30, 2005.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This legislation would not affect Total State Revenue.
SOURCES OF INFORMATION
Department of Economic Development - Public Service Commission
Department of Economic Development - Office of the Public Counsel
Department of Elementary and Secondary Education
Cooperating School Districts of Greater St. Louis
Mickey Wilson, CPA
Acting Director
April 17, 2002