TO:	Honorable Dan Patrick, Lieutenant Governor, Senate
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	SB1580 by Hancock (Relating to the use of securitization by electric cooperatives to address certain weather-related extraordinary costs and expenses.), As Passed 2nd House

It is assumed that the costs associated with the bill's provisions relating to the use of securitization by electric cooperatives to address certain weather-related extraordinary costs and expenses could be absorbed using existing resources.

Local Government Impact

According to the Texas Association of Counties, the bill's provisions may benefit counties and county residents who are customers of electric cooperatives by stabilizing utility bills that would otherwise increase immediately to finance recovery costs from winter storm Uri. The fiscal implications of the bill cannot be determined at this time.