HCS HB 2408 -- UTILITIES

SPONSOR:  Bivins (Schlottach)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Energy and
Environment by a vote of 11 to 1.

This substitute changes the laws regarding the Office of Public
Counsel, retail electric suppliers, and rate cases before the
Missouri Public Service Commission.

OFFICE OF PUBLIC COUNSEL

An assessment-based funding mechanism is created for the Office
of the Public Counsel.  Prior to the beginning of each fiscal
year, the counsel must make available to the Missouri Public
Service Commission an estimate of the expenses to be incurred
during the year which are reasonably attributable to the
regulation of public utilities under Sections 386.700 and
386.710, RSMo, a separate estimate of expenses directly
attributable to the various public utility groups, and the amount
of expenses not directly attributable to these groups.

The calculation of the assessments is specified in the substitute
with the amount allocated to telephone corporations limited to no
more than 10% of the total estimated expenses and the total
amount of the counsel's assessment limited at two hundredths of
1% of the total gross intrastate operating revenues of all
utilities regulated by the commission.  In order for the counsel
to make the allocations and assessments, every commission-
regulated public utility must file with the commission a
statement under oath of its gross intrastate operating revenues
on or before March 31 of each year for the preceding calendar
year.  If a utility fails to timely file a statement, the
commission will estimate the revenues.

A statement of the assessments must be rendered by the commission
on behalf of the counsel to each public utility on or before
July 1 with the amount assessed paid by July 15 or, if the
utility elects, in four equal installments throughout the fiscal
year.  The moneys from the assessments will be deposited into the
newly created Public Counsel Fund solely for the payment of
expenditures actually incurred by the counsel.  Moneys remaining
in the fund will not revert to the General Revenue Fund.

RETAIL ELECTRIC SUPPLIERS

Any retail electric supplier regulated by the Missouri Public
Service Commission may apply to the commission to approve rate
schedules authorizing periodic rate adjustments to recover
prudently incurred costs of investments and installations of
smart grid and voltage regulation technologies which reduce
energy consumption or improve grid efficiency.

RATE CASES BEFORE THE MISSOURI PUBLIC SERVICE COMMISSION

The substitute reduces from 120 days to 90 days the time period
that the Missouri Public Service Commission can suspend a rate
change filed with the commission by a gas, electrical, water, or
sewer corporation in order to hold a hearing.  The commission may
extend the suspension for no more than two months if a hearing
cannot be conducted within the period of the suspension.
Currently, the suspension can be extended for a period not to
exceed six months.

The commission is required to issue its decision at least 20 days
prior to the end of the suspension period, and the order will be
effective 10 days after its issuance.  The corporation must file
new rate schedules at least five business days prior to the end
of the suspension period, and the new schedules must take effect
no later than the first day following the end of the suspension
period unless rejected by the commission or a rehearing is
pending.  If the schedules are rejected by the commission, the
corporation is permitted to file replacement schedules in order
to comply with the commission's order and must also take effect
automatically on the proposed effective date.

If the commission further suspends a rate schedule, it must
determine the new rate using certain information updated as of 60
days prior to the end of the suspension period.

The substitute contains an emergency clause.

FISCAL NOTE:  Estimated Income on General Revenue Fund of
$1,225,672 in FY 2011, FY 2012, and FY 2013.  No impact on Other
State Funds in FY 2011, FY 2012, and FY 2013.

PROPONENTS:  Supporters say that the Office of Public Counsel is
an essential part of the process of hearing utility rate cases
before the Missouri Public Service Commission.  The bill will
provide a stable and adequate source of funding for the office
and will reduce the use of the state's general revenue.

Testifying for the bill were Representative Schlottach; Missouri
Retailers Association; Office of Public Counsel; Missouri Public
Service Commission; Albert Owen, Jr, Boeing; Steven Spinner,
Anheuser-Busch; Missouri Association for Social Welfare; AARP; and
Consumers Council of Missouri.

OPPONENTS:  Those who oppose the bill say that funding the Office
of Public Counsel through assessments on utilities is not good
public policy.  The office represents the public in rate cases and
should be funded with public funds.

Testifying against the bill were Missouri Energy Development
Association; Missouri Telecommunications Industry Association; and
Missouri Cable Telecommunications Association.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:13 pm