FISCAL NOTE

Date Requested: February 08, 2019
Time Requested: 11:26 AM
Agency: Public Service Commission
CBD Number: Version: Bill Number: Resolution Number:
3026 Introduced HB2928
CBD Subject: Legislature, Public Service Commission, Utilities


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 2928 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 2928 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.



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 PSC should continue to be exempt from legislative rule review because it oversees inherently dangerous and vital commodities. Electricity is an essential public utility commodity that must be safely transmitted over thousands of miles of West Virginia electrical lines and delivered directly to customer homes and businesses. Yet we must be keenly aware that electricity can kill. Similarly, natural gas can explode and requires special regulatory oversight to assure safe delivery through thousands of miles of WV gas lines to be immediately available at all times when and where needed. Water is the only utility commodity that must be treated, stored and delivered in a condition to be safely ingested. Sewer facilities must be designed and operated so that it cannot be ingested or find its way into the food chain. Telephone service is the backbone of commerce. Telephone service is the backbone of commerce. Over the years, the PSC has garnered the background, expertise and credentials to safely weigh, evaluate, and assess the rules that relate to these unusual commodities. This bill conflicts with the Legislature’s intent in 1913 when it created the PSC as an independent agency and granted the PSC broad, general legislative authority to regulate utilities and protect the public interest. The PSC performs quasi-legislative, quasi-judicial functions. Utility regulation is complicated, specialized, subject to state and federal law and utility regulation is impacted by safety concerns, volatile natural resource pricing, changes in tax law, infrastructure replacement costs and environmental regulation. This bill conflicts with W.Va. Code 24-1-7. The fundamental provisions of the Administrative Procedures Act already apply to PSC in rulemaking, including requirements for adequate public notice and the opportunity for meaningful public participation. The PSC has in effect thirty series of rules. In 2018, the PSC repealed five series and revised or initiated revisions in four series. The PSC should continue to be exempt from legislative rule review and continue to oversee vital commodities and resolve complex utility issues with full consideration of all party positions, based on a record and subject to appeal to the Supreme Court.



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