Fiscal Note - SB 0439 - Regulation of Merchandising Practices of Gas and Electric Utilities
L.R. NO. 1609-01
BILL NO. SB 439
SUBJECT: Utilities: Merchandising Practices
TYPE: Original
DATE: March 13, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Public Service
Commission Fund ($249,121) ($259,063) ($265,782)
Total Estimated
Net Effect on All
State Funds** ($249,121) ($259,063) ($265,782)
** 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 that this proposal would require the PSC to review,
inspect and audit books, accounts and other records kept by a utility,
affiliate or utility contractor and their relationship to each other. It
would also require the PSC to adopt administrative rules and conduct hearings
to administer and ensure compliance with this proposal.
PSC officials assume they would request one (1) Utility Regulatory Auditor V,
two (2) Utility Regulatory Auditor III's, one (1) Utility Regulated Auditor
II, and one (1) legal counsel with related expense and equipment to perform
the additional responsibilities of this proposal. 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 (5 FTE) ($133,064) ($163,734) ($167,827)
Fringe Benefits (37,963) (46,713) (47,881)
Expense and Equipment (78,094) (48,616) (50,074)
Total Cost - PSC ($249,121) ($259,063) ($265,782)
ESTIMATED NET EFFECT ON
PUBLIC SERVICE COMMISSION
FUND ($249,121) ($259,063) ($265,782)
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 establish merchandising practices of utilities to promote
fair and open market competition. It contains provisions describing the role
of the utility. This proposal would require a utility to conduct business in
a way that would promote fair and open market competition and would not allow
unfair privilege to any one affiliate or utility contractor. Violation of
any provision would be a felony and could result in a fine of up to $25,000.
Also, this proposal would contain provisions describing the role of the
affiliate. The affiliate would be prohibited from identifying itself in any
way, by name or advertising, with the utility. All records, assets, and
revenues of the affiliate must be maintained separately from those of the
utility. Violation of any provision would be a felony and could result in a
fine of up to $25,000.
This proposal would require the Public Service Commission (PSC) to review,
inspect and audit books, accounts and other records kept by a utility,
affiliate or utility contractor and make findings available to the
Commission. It would require PSC to investigate the operations of both
affiliates and utilities to ensure compliance with the provisions of this
proposal. This proposal would also require PSC to adopt administrative rules
and conduct hearings to administer and ensure compliance with this proposal.
Additionally, the proposal would prohibit any electric corporation, except
rural electric cooperatives, from selling warranties on gas or electric
appliances.
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.