HCS SS SCS SB 462 -- RECEIVERSHIP OF SEWER AND WATER CORPORATIONS

SPONSOR:  Klindt (Schad)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Utilities
by a vote of 14 to 0.

This substitute allows the Missouri Public Service Commission to
order a capable public utility to acquire a smaller water or
sewer corporation if the water or sewer corporation violates
standards that affect the safety of the service provided, fails
to comply with commission orders related to the safety of the
service provided, or it is not reasonable to expect that safe and
adequate facilities and service will be maintained.  The
commission must consider alternatives to the acquisition and
determine that they are impractical or not economically feasible.
The price for the acquisition of a small water or sewer
corporation will be determined by an agreement between the small
water or sewer corporation and the acquiring capable public
utility, subject to a determination by the commission that the
price is reasonable.

Any capable public utility that is ordered by the commission to
acquire a small water or sewer corporation will, within 30 days
after acquisition, submit a plan to the commission for approval
for bringing the small water or sewer corporation into compliance
with applicable statutory and regulatory standards.

The substitute contains an emergency clause.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of Unknown
in FY 2006, FY 2007, and FY 2008.  Estimated Cost on Other State
Funds of Unknown in FY 2006, FY 2007, and FY 2008.

PROPONENTS:  Supporters say that the bill makes it more efficient
for the Missouri Public Service Commission to take over a failing
water and sewer district.  The bill deals with for-profit,
investor-owned companies.  Additionally, the circuit courts will
make final decisions regarding the sale price and company value
determinations.

Testifying for the bill were Senator Klindt; Missouri Public
Service Commission; and Missouri American Water Company.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill say that they are
concerned that sewer districts could also be forced to take over
these sewer and water companies and would like additional
language to exempt sewer districts.

Others testifying on the bill was Metropolitan St. Louis Sewer
District.

Kristina Jenkins, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:21 pm