HB 344 -- Cost Recovery for Utilities

Co-Sponsors:  Rector, Bivins, Willoughby

This bill allows gas corporations to file petitions with the
Public Service Commission for rate and charge adjustments that
recover from customers prudently incurred costs for
infrastructure replacement and security projects.  Eligible
projects may include replacement of deteriorating equipment,
safety enhancements, security measures related to terrorism
threats, and non-reimbursed costs of facility relocations
required by highway and other public works construction.
Projects may not increase revenue by connecting to new customers
and must not have been included in the corporation's last general
rate case.

Commission staff may examine the petition and submit a report
within 60 days.  The commission may hold a public hearing and
must issue an order that becomes effective within 120 days after
the petition is filed.  During its consideration of the petition,
the commission may not examine the corporation's other revenue
requirements or rate-making issues.

Charges will not be approved if the corporation's last general
rate proceeding was more than four years before the petition was
filed or if the adjustment produces revenue exceeding 10% of the
base revenue level approved in the corporation's last general
rate proceeding.  Rates may not be adjusted more than twice a
year, and charges may not be collected for more than four years
unless the corporation has filed or is the subject of a new
general rate proceeding.  Estimated monthly charges are subject
to annual reconciliation.

The bill also requires the commission to allow electric
corporations to recover from customers prudent costs for security
measures and insurance and for non-reimbursed costs of facility
relocations required by highway and other public works projects.
Requests for recovery of security and insurance costs are
confidential and subject to a protective order of the commission.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am