|
BILL # HB 2113 |
TITLE: public service corporation; rates; intervenor |
|
SPONSOR: Martinez |
|
|
PREPARED BY: Jacob Cross Mayhew |
STATUS: House Engrossed |
The bill would require the Residential Utility Consumer Office (RUCO) to intervene in a public service corporation rate case if the proposed rate increase to residential customers is 100% or more.
Estimated Impact
We estimate the bill would result in an increase in costs to the RUCO Revolving Fund associated with a larger caseload for RUCO. In testimony at the Senate Natural Resources Committee, RUCO stated that the bill would increase their costs by $2 million. The agency currently has a budget of $1.95 million.
We have requested information from RUCO on the estimated cost of the bill but have not yet received a response. Without supporting written documentation of the RUCO cost projection, we are not able to comment on the validity of their estimate.
Our estimate assumes the following:
1) RUCO currently intervenes primarily in rate cases involving utilities with residential operating revenues exceeding $10 million. RUCO is currently active in 5 such cases.
2) According to RUCO, smaller utilities with annual residential operating revenue up to $999,999 are more likely to have a 100% rate increase, and such increases may occur when the rate has not been adjusted for many years.
3) In Senate Natural Resource Committee testimony, RUCO estimated that the bill would require their participation in an additional 16 cases. In the testimony, RUCO also estimated this would require an additional 13 FTE positions.
3/18/26