FISCAL NOTE

Date Requested: February 07, 2019
Time Requested: 11:28 AM
Agency: Public Service Commission
CBD Number: Version: Bill Number: Resolution Number:
2970 Introduced HB2898
CBD Subject: Public Service Commission


FUND(S):

Public Service Commission Utilities Fund 8623

Sources of Revenue:

Special Fund

Legislation creates:





Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government. House Bill 2898 as proposed will have no impact on the costs and revenues of the Public Service Commission. However, PSC officials have raised several issues and questions with this draft bill. Their concerns are listed in the Summary Section of this Fiscal Note.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years. House Bill 2898 as proposed will have no impact on the costs and revenues of the Public Service Commission.



Memorandum


Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form. The Public Service Commission’s rules for the government of electric, gas and water utility service provide that meters be read at regular intervals. Although actual meter readings are preferred, the rules do not require the use of actual readings. Moreover, the Commission has long recognized that an actual reading is not always able to be obtained. If HB 2898 is passed prohibiting issuing any bills based on estimation, it will require the Commission to revise its rules on file with the Secretary of State to reflect this prohibition. In addition to the time and expense associated with revising Rules, eliminating any ability of utility to issue an estimated bill could result increase the cost of utility service and result in an increase in the rates of some utilities. 1.Although actual meter readings are preferred, under certain circumstances an actual reading each month is not always possible to obtain. Circumstances where this can occur can involve inclement weather, major storms, use of meter reading personnel for other purposes during emergency situations, and denial of access by a customer. Under current procedures, if a meter reading is unable to be obtained on 30-day schedule, the customer still receives a bill for an amount close to what he would otherwise have received. Any variation from actual use is self correcting with the next month’s actual reading. If estimations are strictly prohibited and a utility bill cannot be rendered until the next actual billing cycle, that bill will involve a two-month period and will be substantially higher than expected by the customer. This could lead to an increase in high bill complaints from customers in place of complaints about estimated bills. 2.The procedures followed by the major electric, gas and water utilities serving West Virginia provide for their customer meters to be read on a monthly basis. However, on occasion, estimated readings will occur for the reasons indicated above. Even though estimated readings occur, monthly Commission data on customer complaints does not indicate that estimated utility bills are a significant problem justifying a prohibition of estimated bills. The following table shows the approximate number of bills that are issued each year by the major electric, gas and water utilities, and the average number of complaints received from customers regarding estimations. Out of more than 18 million monthly bills issued annually to utility customers, the Commission has only received on average 51 complaints per year for the past three years.



    Person submitting Fiscal Note: Cheryl A. Ranson
    Email Address: cranson@psc.state.wv.us