HCS SCS SB 1177 -- UTILITIES

SPONSOR:  Klindt (Rector)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Communications, Energy and Technology by a vote of 20 to 0.

Current law requires that territorial agreements specify the
boundaries of the service area of each water and electric service
supplier.  In cases where the parties cannot agree, they may
petition the Missouri Public Service Commission to designate the
boundaries to be served by each party.  This substitute clarifies
that the commission can only be petitioned when the parties
cannot agree upon the boundaries of the service areas that are
not specified in the  agreement.

Current law states that the commission must hold an evidentiary
hearing when receiving any petition, when determining whether or
not a territorial agreement should become effective, and when
complaints involving any commission-approved territorial
agreement are presented.  The substitute states that these
hearings can be waived if the matter is resolved by a stipulation
and an agreement is submitted to the commission.  All parties
must agree to waive the hearing.

The commission is allowed to approve the terms and conditions, as
well as the energy efficiency, weatherization, and evaluation
components of assistance programs for low-income residential
customers proposed by electric or gas corporations.  All
assistance programs must provide for adjusting rates as necessary
to prevent a negative financial impact on the electric or gas
corporation.

The substitute establishes a system by which the Clean Water
Commission determines a per capita average cost for all safe
water remediation projects in the state by dividing the state
into six classes based on population.  These provisions apply to
any state or federally funded project.  If the subsequent design
or engineering firm prepares plans which have an average cost
less than the per capita average determined by the commission,
the firm will receive a bonus for the below-cost design.  The
formula does not require any project to accept a proposal or
award any additional compensation to any certified licensed
engineer if it increases the net combined costs of installation
and operational costs for the first five years of the project.

If a city that owns a water supply system receives an inquiry
from a developer regarding the supply of water to a specific area
which is at least partially located within the boundaries of a
public water supply district, the city must notify the district
of the inquiry within 10 days.  The written notice must provide
the location of the proposed area, the projected water usage, and
any other relevant information that would be necessary to
determine whether or not the district could provide adequate
water service within a reasonable time frame to that area.

In 2002, voters approved a constitutional amendment allowing
joint municipal utility commissions to develop utility projects
with municipalities, electric cooperatives, or public utilities
without additional regulation by the commission.  The substitute
codifies the Missouri Revised Statutes to reflect these changes.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that the bill is necessary to
properly implement a change to Missouri's Constitution which was
approved by voters in 2002.  The constitutional amendment
facilitates shared municipal utility projects, such as the
building of power plants.

Testifying for the bill were Senator Klindt; American Council of
Engineering Companies of Missouri; and Missouri Association of
Municipal Utilities.

OPPONENTS:  There was no opposition voiced to the committee.

Alice Hurley, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:16 am