FISCAL NOTE

Date Requested: January 23, 2019
Time Requested: 01:55 PM
Agency: Public Service Commission
CBD Number: Version: Bill Number: Resolution Number:
2158 Introduced SB409
CBD Subject: Public Service Commission


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.
    
    Senate Bill 409 as proposed will have no impact on the costs and revenues of state government. However, PSC Utilities and Legal Divisions professionals have proposed changes to the text of SB409. Their recommended changes 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.
    
    Senate Bill 409 as proposed will have no impact on the costs and revenues of the Public Service Commission.



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 Public Service Commission recommends certain minor modifications to Senate Bill 409. Currently retail electric customers can purchase a renewable or alternative energy facility for installation at their premises for the purpose of supplying all or a portion of the energy requirements of that premises. SB 409 eliminates any uncertainty as to whether alternative financing arrangements involving the leasing of such facilities from a third party and/or the entering into a contractual arrangement with a third-party that includes payments based on the quantity of power and energy supplied by the facility, would make the customer or the third-party a “public utility”, or would constitute an extension of “retail access to competitive power supply markets” as provided for in WV Code 24-2-18. Public Service Commission Staff comments follow:
    
    1. PSC Staff proposes the following changes to the text of SB 409:
     a.Page 2 at line 5 “Provided, That “public utility” shall not include individuals or entities owning a renewable or alternative energy resource facility qualifying as a customer-generator under the provisions of WV Code 24-2F-8 and located on and designed to meet only the electrical needs of the premises of a retail electric customer: (1) That is leased to such retail electric consumer; or (2) the output of which is subject to a power purchase agreement with the retail electric customer.
     b.Page 3 at line 1 “Provided, That the provision of a renewable or alternative energy resource facility qualifying as a customer-generator under the provisions of WV Code 24-2F-8 and located on and designed to meet only the electrical needs of the premises of a retail electric customer: (1) That is leased to such retail electric consumer; or (2) the output of which is subject to a power purchase agreement with the retail electric customer.
    
    2. The bill eliminates any uncertainty as to potential public utility status and retail access conflicts with regard to third-party involvement in the leased the facilities and/or contractual arrangement involving a payment based on energy production.
    



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