HCS HB 434 -- UTILITY RATE REGULATIONS

SPONSOR:  Rector

COMMITTEE ACTION:  Voted "do pass" by the Committee on Utilities
by a vote of 15 to 1.

This substitute authorizes the Missouri Public Service Commission
to approve rate regulation plans proposed by electrical, gas, or
water corporations, including plans that apply rate-making
principles to future transactions or plans that utilize
incentives or mechanisms to recover costs.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that the bill enables the Missouri
Public Service Commission to determine the regulatory treatment
of large construction projects and allow electric utilities to
recover their fuel costs to generate electricity.  In doing so,
the commission may approve alternate rate regulation plans that
include incentive and periodic rate adjustment mechanisms outside
of general rate cases.

Testifying for the bill were Representative Rector; Aquila,
Incorporated; LaClede Gas; Ameren Corporation; City Utilities;
Missouri Public Utility Alliance; Missouri Association of
Municipal Utilities; and Empire District Electric Company.

OPPONENTS:  Those who oppose the bill say that the bill allows
the Missouri Public Service Commission to disregard current
rate-making proceedings and processes.  Consumers would be
affected negatively, and the utilities market would be
destabilized if surcharges were allowed.

Testifying against the bill was Missouri Energy Group.

Kristina Jenkins, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:19 pm