FISCAL NOTE

Date Requested: February 12, 2016
Time Requested: 03:59 PM
Agency: Public Service Commission
CBD Number: Version: Bill Number: Resolution Number:
2605 Introduced SB592
CBD Subject: Public Service Commission


FUND(S):

8624

Sources of Revenue:

Special Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


This draft bill is revenue neutral for pipeline mileage existing at the time of passage, therefore it will have no impact on the costs and revenues of the Public Service Commission. (see Memorandum explanation below for additional information)



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
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):


This draft bill is revenue neutral for pipeline mileage existing at the time of passage, therefore it will have no impact on the costs and revenues of the Public Service Commission. (see Memorandum explanation below for additional information)



Memorandum


This bill changes the method used to calculate the amount of special license fees paid by pipeline companies to the Public Service Commission, both to make the amount of the annual fee easier for pipeline companies to determine, and to reflect the growth in pipeline mileage within the state that will be subject to the safety standards and practices of the West Virginia Gas Pipeline Safety Act. In response to industry requests to simplify the calculation for determining the amount of the annual fee, the bill changes the method of calculation to a stated amount per mile of three-inch equivalent pipeline ($18.60 per mile). The bill is revenue neutral for pipeline mileage existing at the time of passage. The bill also reflects growth in pipeline mileage within West Virginia that will be subject to the Act, by making new mileage subject to the stated charge per mile. The total amount to be collected annually will no longer be capped (currently $385,000), and the cap instead will apply to the charge per mile in order to accomplish the two stated goals. The definition of regulated pipeline remains unchanged as does the Public Service Commission’s jurisdiction in this area.



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