FISCAL NOTE
FUND(S):
8623
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 legislation will increase revenues collected for the Utilities (8623) Special Revenue Fund by $200,000 in fiscal year 2010 and $100,000 thereafter through a new assessment on all electric utilities required to file an energy portfolio compliance plan.
The legislation will increase costs because of the new requirements this bill imposes on the Public Service Commission. Inasmuch as neither the Commission nor any other state agency currently has those requirements, such as conducting a system of tradeable credits, the Commission will be required to hire a consultant. In addition, an Engineer and Utility Analyst will be needed to review annual compliance plans; to review and certify greenhouse gas efforts; and to propose rules for the certification of emission reduction efforts, energy conservation and demand side energy initiatives. These employees will also review the energy portfolio standard compliance plans, oversee the tradeable credit plan, develop annual alternative and renewable energy resource assessments for the entire state, and be involved in many of the new requirements this bill places on the Commission.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2009
Increase/Decrease
(use"-") |
2010
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
300,000 |
262,000 |
| Personal Services |
0 |
0 |
152,000 |
| Current Expenses |
0 |
0 |
10,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
300,000 |
100,000 |
| 2. Estimated Total Revenues |
0 |
200,000 |
100,000 |
Explanation of above estimates (including long-range effect):
Fiscal Year 2009: There will be minimal additional costs related to this legislation in fiscal 2009.
Fiscal Year 2010
Costs
•$300,000 (Other) for a consultant to help develop a tradeable credit plan and to assist in other areas that are new to the Commission.
Revenue
•$200,000 as a result of new assessments imposed on all electric utilities required to file a compliance plan.
Fiscal Year (Upon Full Implementation)
Costs
•$152,000 (Personal Services) for salary and benefits for an Engineer and Utility Analyst.
•$10,000 (Current Expenses) for travel, supplies, training and other miscellaneous costs.
•$100,000 (Other) for consulting services and other direct expenses of the Commission related to administering the program.
Revenue
•$100,000 as a result of new assessments imposed on all electric utilities required to file a compliance plan. There is also a reference to an administrative transaction fee that will probably generate some additional cost recovery under West Virginia Code §24-2F-4(c)(4).
Memorandum
This legislation will increase costs because of the extensive new requirements that this bill places on the Public Service Commission. Some of the more significant new requirements involve: 1) Certifying alternative and renewable energy resources, 2) Developing a tradeable credit plan and related rules, 3) Conducting ongoing alternative and renewable energy resource planning assessment for the state, 4) Promulgating various rules related to emission reduction, conservation, efficiency demand, etc., 5) Determining annual compliance with the statute and 6) Reviewing, assessing and documenting the annual alternative and renewable energy portfolio standard compliance plan to be filed with the Commission.
This program will reside in the Commission's existing Utilities Fund (8623). This fund is a source of funding for all of the Commission's utility regulatory activities.
Person submitting Fiscal Note: David M. Kovarik
Email Address: fiscalnote@psc.state.wv.us