HCS SS SCS SB 900 -- UTILITY PROJECTS

SPONSOR:  Goode (Mays, 50)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Utilities
Regulation by a vote of 13 to 8 with 2 present.

This substitute allows schools to aggregate purchases of natural
gas through contracts established by a not-for-profit school
association.  The program is limited to public schools for the
first year, open to all schools for subsequent years, and expires
on June 30, 2005.

Energy sellers must register for the program with the Public
Service Commission, and gas corporations must file experimental
small volume transportation schedules or tariffs by August 1,
2002.  The commission may suspend the schedules or tariffs before
November 1, 2002, to review data and ensure compliance.  Gas
corporations cannot require special metering for schools that use
200,000 or fewer therms annually, must provide daily usage
projections based on weather and historical usage patterns, and
must report program revenue and costs to the commission annually
by June 1.  The school association must report participation and
cost savings data to the commission annually by September 1, and
the commission must file a report with the General Assembly
within 90 days thereafter.

The substitute also gives the commission the authority to
allocate refunds and penalties from gas and pipeline companies in
any manner it determines to be in the public interest after
providing notice and holding a hearing.  Currently, the
commission allocates these refunds and penalties equally among
all affected customers.

Further, the substitute repeals the authority of the commission
to regulate gas and electric services provided by joint municipal
utility commissions.  Revenue bonds issued by joint utility
commissions may be sold at private sale; and the property of
commissions, except that acquired exclusively for water supply
districts, is subject to the same taxation as property owned by
the participating municipalities.

The substitute also removes the August 28, 2002, expiration date
for provisions that prohibit political subdivisions from
providing or selling telecommunication services that require a
certificate of service authority from the Public Service
Commission.  Municipal utilities are allowed to offer wholesale
telecommunication services within their service boundaries on a
nondiscriminatory, competitively neutral basis at a price that
covers costs.  If approved by voters, municipalities are also
allowed to own and operate cable television facilities on a
nondiscriminatory, competitively neutral basis.

Finally, the substitute modifies the Utilicare Program.
Currently, individuals must have a combined household income of
110% or less of the current federal poverty level to qualify for
the program.  The substitute raises the eligibility level to 150%
of the federal poverty level, allows eligibility to be based on
household incomes that are 60% of the state median income, and
increases the amount that eligible households can receive from
the Utilicare Fund for heating and cooling from $150 to $600.
The substitute also requires the Department of Social Services to
coordinate all federal programs into the Utilicare Program;
allows funds for the Utilicare Program to come from any source,
including federal funds from the federal Community Opportunities
Accountability and Training and Educational Services Act; and
requires all funds to be used for the Utilicare Program and for
the federal Low Income Home Energy Assistance Program.

The substitute contains an emergency clause.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that the substitute will result in
significant energy cost savings for school districts and will not
affect payment of gross receipts taxes.  Allowing the Public
Service Commission to allocate refunds to customers that need
assistance during an energy crisis is in the public interest.

Testifying for the bill were Representative Mays (50); Missouri
Gas Energy; Cooperating School Districts of Greater St. Louis;
Missouri School Boards Association; Cooperating School Districts
of Greater Kansas City; Missouri Energy Group; Public Service
Commission; Office of the Public Counsel; and Utilicorp.

OPPONENTS:  Those who oppose the substitute say it does not allow
for proper collection of gross receipts taxes and is a vehicle
for further utility deregulation.

Testifying against the bill were Missouri AFL-CIO; Laclede Gas
Company; and Ameren UE.

Terry Finger, Senior Legislative Analyst

Missouri House of Representatives
Last Updated October 11, 2002 at 9:04 am