HCS HB 2494 -- ELECTRIC COOPERATIVES

SPONSOR:  Jones, 89 (Pollock)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
General Laws by a vote of 6 to 0.

This substitute requires a regional electric cooperative that
provides electrical power and energy under an all-requirements
contract to two or more municipalities within Missouri to allow
the municipalities to appoint at least four members to its
governing board.  Appointments will be made by majority vote of
the mayors of the municipalities served by the cooperative, and
the individuals appointed to represent the municipalities will
have the same rights and benefits as other members of the board.

A regional electric cooperative providing electrical power and
energy under an all-requirements contract to two or more
municipalities is prohibited, either directly or indirectly by
any special rate, rebate, or drawback from charging, demanding,
collecting, or receiving a greater amount of compensation for
electrical services than it charges from any other municipality
located in the United States for offering a like and
contemporaneous service under substantially similar circumstances
or conditions.  A regional electric cooperative cannot make or
grant any undue or unreasonable advantage or preference to any
person, corporation, or locality or subject any particular
person, corporation, or locality to any undue or unreasonable
prejudice or disadvantage.

The provisions of the substitute may be enforced by an injunction
prohibiting any regional electric cooperative who fails to comply
with any of the requirements of the substitute from operating
within Missouri.

FISCAL NOTE:  No impact on state funds in FY 2009, FY 2010, and
FY 2011.

PROPONENTS:  Supporters say that the bill limits regional
cooperatives from declaring or making winners and losers among
the consumers to whom the cooperatives provide power.  The bill
promotes fair treatment and prevents the cooperatives from
discriminating between municipalities or customers.  In the past,
rural customers have been given cheaper power rates than
municipal customers because of a disparate impact of municipal
areas having higher usage rates because of manufacturing.

Testifying for the bill were Representative Pollock; and Peter
Harrington.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm