FISCAL NOTE

Date Requested: January 11, 2023
Time Requested: 08:52 PM
Agency: Public Service Commission
CBD Number: Version: Bill Number: Resolution Number:
1937 Introduced HB2120
CBD Subject:


FUND(S):

Fund 8623 Public Service Commission Fund (Utilities)

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. This bill will shorten the statutory deadline from 400 days to 270 days. Given the Public Service Commission’s (PSC) difficulty in hiring and retaining utility analysts and given the shortened timeframe the bill will have a fiscal impact because of the need to hire outside consultants to meet the new deadlines. If the PSC has to hire consultants the costs would vary from case to case and would be influenced by the number of cases filed each year. The PSC estimates the cost to be between $300,000 and $2,700,000. The shuttering of a coal-fired power plant prior to the end of its useful life will have a severe impact on the state of West Virginia both directly and indirectly. Loss of employment for the power plant employees and those companies supplying coal and other products and services. The state will lose B&O and severance tax income while the affected county will have diminished property tax collection.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2023
Increase/Decrease
(use"-")
2024
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 300,000 300,000
Personal Services 0 0 0
Current Expenses 0 300,000 300,000
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. If the PSC has to hire consultants the costs would vary from case to case and would be influenced by the number of cases filed each year. There are approximately 7-9 power plants, if they all shut down in the same year the estimated cost would be $2,700,000. Therefore, the PSC estimates the cost to be between $300,000 and $2,700,000.



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.



    Person submitting Fiscal Note: Sandy Mitchell
    Email Address: smitchell@psc.state.wv.us