COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3495-02
Bill No.: SB 888
Subject: Public Service Commission: Utilities
Type: Original
Date: April 1, 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 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials of the Department of Natural Resources noted that they do not issue any permits under the Missouri Water Resource Law (sections 640.400 to 640.435, RSMo) and, therefore, would not anticipate any impact from the proposed 640.401.
Officials of the Department of Economic Development's Public Service Commission stated that they would not anticipate many cases involving rate regulated utilities for construction or lease of generation units which meet the criteria of this proposal and, therefore, would not request additional resources at this time.
Officials of the Department of Economic Development's Office of the Public Counsel stated that the time frame for cases which meet the criteria for this proposal would be three to five months compared to eleven months for a typical "file and suspend" rate case. Office of the Public Counsel officials estimate two case per year and would request consulting fees of $40,000 per case.
Oversight assumes that since the Public Service Commission has asked for an additional Administrative Law Judge in proposals which they thought might cause an additional major rate case per year, the Commission is not anticipating that many case per year. The Office of the Public Counsel could request money for consultant fees for cases as a budget decision item or as a supplemental budget item as cases arise.
| FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $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, other provisions of law notwithstanding, require the Public Service Commission to specify ratemaking principles in advance of construction or leasing in this state of electric generating facilities of three hundred megawatts or more.
DESCRIPTION (continued)
The Commission would not be limited to traditional ratemaking principles or cost recovery
mechanisms in deriving the applicable principles. The ratemaking principles would be determined in a contested case proceeding.
Affected utilities would, after the entry of the order specifying the ratemaking principles, have the option to construct, lease or withdraw applications for certificates. The principles would not be binding on subsequent rate cases.
The proposal would also require the Department of Natural Resources approve or deny permit applications within 180 days of receipt.
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
Office of the Public Counsel
Department of Natural Resources
Mickey Wilson, CPA
Acting Director
April 1, 2002