|Date Requested:February 16, 2013
Time Requested:11:53 AM
| FUND(S) |
Sources of Revenue
Legislation creates:A New Program,A New Fund
Effect this measure will have on costs and revenues of state government.
| The bill will not have a significant measurable impact on the operations or the operating costs of the Public Service Commission.
This bill will not have a revenue impact on the WV Public Service Commission but will have a revenue impact for State Government. The additional revenue, approximately $11.5 million per annum upon full implementation, will be remitted to the Treasurer by Electric Utility Companies and deposited into the West Virginia Energy Expansion Trust Fund.
The bill will increase electric rates for all customers by $0.00035 per kilowatt hour. This increase will have an impact on the electric bills of all State, county and municipal governments, and other subdivision of the State. We do not have detailed data on the total energy usage of these entities to calculate the total impact of the increased rate on costs. We estimate that the average electric rate across all usage levels is approximately $0.08 per kwh. At that average rate, the increase authorized by the Bill would represent an average increase on electric bills of four-tenths of one percent (.004).
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||9,500,000||11,500,000|
3. Explanation of above estimates (including long-range effect):
The revenue increase does not impact the WV Public Service Commission but does increase the revenues of State Government. Revenue is calculated by multiplying the new charge per kilowatt-hour noted in the bill by anticipated kilowatt-hour consumption by all electricity customers in WV.
Fiscal Year 2014: The bill is effective August 31, 2013 so it will be in place for ten months of fiscal year 2014. Kilowatt-hour consumption is estimated to be about 27.0 billion kilowatt-hours for that ten month period. That consumption when multiplied by the charge per kilowatt-hour of $.00035 results in a total of $9.4 million in revenue.
Fiscal Year Upon Full Implementation: Kilowatt-hour consumption is expected to be approximately 32.8 billion kilowatt-hours growing at 1% to 1.5% per annum. Therefore when multiplied by the charge of $.00035 per kilowatt hour, approximately $11.5 million revenue is generated annually.