HB 599 -- MISSOURI PUBLIC SERVICE COMMISSION JURISDICTION

SPONSOR:  Diehl

COMMITTEE ACTION:  Voted "do pass" by the Committee on Job
Creation and Economic Development by a vote of 12 to 0.

This bill removes the provision prohibiting the Missouri Public
Service Commission from having jurisdiction over the rates,
financing, accounting, or management of any electrical
corporation operating as a not-for-profit cooperative.

FISCAL NOTE:  No impact on state funds in FY 2010, FY 2011, and
FY 2012.

PROPONENTS:  Supporters say that the bill repeals a piece of
special legislation that provided an exemption from regulation by
the Missouri Public Service Commission for one company in
southeast Missouri.  The natural resources available in that area
of the state are ideal for producing cement.  The electricity
required to produce cement accounts for 30% to 40% of the total
cost.  Therefore, it is critical that cement producers have
stable, predictable costs for their electricity needs.

Testifying for the bill were Representative Diehl; Mississippi
Lime Company; and Holcim, Incorporated.

OPPONENTS:  Those who oppose the bill say that requiring Citizens
Electric Company to be regulated by the commission will lead to
increased costs because lawyers and additional staff will be
required for handling rate cases that come before the commission.
Being regulated by the commission will require its budget to have
a margin about three times greater than it currently has because
rate cases take nearly a year to resolve.  The margin is
essentially money held in reserve, in case of an emergency.
Being regulated by the commission does not mean the commission
will require lower rates, but simply having to go before the
commission for rate cases will certainly increase rates.

Testifying against the bill were Andrew Sporleder, Citizens
Electric Corporation; and Association of Missouri Electric
Cooperatives.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:25 am