FISCAL NOTE
Date Requested: February 09, 2018
Time Requested: 12:59 PM |
| Agency: |
Public Service Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2479 |
Introduced |
SB515 |
|
|---|
| CBD Subject: |
Public Service Commission |
|---|
|
FUND(S):
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.
This is an aggressive rate and project deregulation proposal that accomplishes total deregulation of water and sewer municipalities and public service districts in 4 years. County Commissions will incur increased costs for publications, financial expert and attorney fees and hearings. Additionally public service districts will no longer be able to apply for rate changes in the stream-lined Public Service Commission rate setting processes of 19A and 30B, which are done at little cost to the utilities. Currently public service districts that have less than $1 million in annual revenues are not required to employ financial or legal experts. In the future small public service districts will be required to incur the costs of hiring financial and legal experts.
The proposed legislation advances a legal structure that places review of County Commission rate actions in the Circuit Court of each county. There are no time limits for Circuit Court action on reviewing rates or projects.
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 |
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.
The PSC will not incur additional costs. A shift of workload from formal cases in the Utilities Division to the Water and Wastewater Division's informal assistance unit may occur as a result of the proposed legislation.
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.
This is an aggressive rate and project deregulation proposal that accomplishes total deregulation of water and sewer municipalities and public service districts in 4 years. County Commissions will incur increased costs for publications, financial expert and attorney fees and hearings. Additionally public service districts will no longer be able to apply for rate changes in the stream-lined Public Service Commission rate setting processes of 19A and 30B, which are done at little cost to the utilities. Currently public service districts that have less than $1 million in annual revenues are not required to employ financial or legal experts. In the future small public service districts will be required to incur the costs of hiring financial and legal experts.
The proposed legislation advances a legal structure that places review of County Commission rate actions in the Circuit Court of each county. There are no time limits for Circuit Court action on reviewing rates or projects.
Currently only six County Commissions (Berkeley, Putnam, Wood, Mason, Ohio and Harrison) have public service districts large enough that they are locally-rate regulated. As drafted, SB 515 will transfer public service district rate-making responsibility to County Commissions over the next 4 years as follows:
Currently: 16 districts
July 1, 2018 additional 49 districts (over $1 million annual revenue)
July 1, 2020 additional 112 districts (over $200,000 annual revenue)
July 1, 2022 remaining 39 districts (regardless of annual revenue)
Person submitting Fiscal Note: Cheryl A. Ranson
Email Address: cranson@psc.state.wv.us