FISCAL NOTE
Date Requested: January 26, 2018
Time Requested: 01:15 PM |
| Agency: |
Public Service Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1746 |
Introduced |
SB396 |
|
|---|
| CBD Subject: |
Public Service Commission |
|---|
|
FUND(S):
Utilities Fund 8623
Sources of Revenue:
Special Fund
Legislation creates:
Increases Existing Expenses
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.
The impact of this legislation on revenues of the State is uncertain. If this bill is enacted as proposed, it is probable that many carriers would seek a waiver of certain prohibitions to avoid the potential for fines. These filings would be a new area of review and would require experienced PSC professionals - analyst and attorney - to process the waiver requests. There is also a real risk of litigation that could require the need for outside legal representation and consultant services.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2018
Increase/Decrease
(use"-") |
2019
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
160,000 |
210,000 |
30,000 |
| Personal Services |
60,000 |
60,000 |
30,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
100,000 |
150,000 |
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.
The above figures represent the dedication of 50% of one Analyst II’s time to processing carrier requests for the first two years and 25% of the Analyst’s time for subsequent years. An Analyst II has an average salary of $50,000 per year.
The increased filings would also require 20% of an Attorney II or Attorney III’s time to process the filing for the first two years and 10% for subsequent years. The average Attorney salary is $65,000 per year.
The increased filings would require 10% of an ALJ’s time the first two years and 5% for the subsequent years. The average ALJ salary is similar to the Attorney salaries.
To account for litigation risks, outside legal representation and consultant services are conservatively estimated at $250,000.
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.
1. PSC legal analysis is that the proposed Net Neutrality legislation is in contravention of a recent Federal Communications Commission ruling which is the subject of litigation in D.C. District Court. If the legislation is passed and implemented there is the potential for the PSC or the Attorney General to be drawn into federal litigation as state entities interfering with inter-state commerce.
2. The proposed legislation is in conflict with W.Va. Code §24-2-1(e) passed first in 2015 with a deficiency and most recently codified in 2017 legislative session. This code provision specifically states the PSC has no jurisdiction of Internet protocol- enabled service or voice-over Internet protocol-enabled service. This State code conflict also may result in litigation.
3. In light of the technical operations of the Internet, enforcing the provisions in the State of West Virginia cannot be accomplished in practice.
Person submitting Fiscal Note: Cheryl A. Ranson
Email Address: cranson@psc.state.wv.us