HB 426 -- Cost Recovery for Water Corporations

Co-Sponsors:  Rector, Byrd

This bill allows water corporations serving more than 10,000
customers to file petitions with the Public Service Commission
for rate adjustments that recover from customers prudently
incurred costs for infrastructure replacement projects.  Eligible
projects may include replacement of deteriorating equipment and
non-reimbursed costs of facility relocations required by highway
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.

Adjustments must appear on the customer's bills as a separate
charge and may only apply to classes of customers that receive
benefits from the infrastructure replacement project.  Charges
must be applied in a manner consistent with the customer class
cost-of-service study from the corporation's most recent general
rate proceeding.

Charges will not be approved if the corporation's last general
rate proceeding was more than three years before the petition was
filed or if the adjustment produces revenue less than $1 million
or more than 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 three years unless the corporation has filed or is
the subject of a new general rate proceeding.  Estimated monthly
charges are subject to annual reconciliation.

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