HB 1728 -- UTILITY PAYMENTS TO PUBLIC COUNSEL FUND

SPONSOR:  Rector

COMMITTEE ACTION:  Voted "do pass" by the Committee on Utilities
by a vote of 9 to 6.

This bill creates an assessment-based funding mechanism for the
Office of the Public Counsel within the Department of Economic
Development similar to that currently utilized by the Missouri
Public Service Commission.  Prior to the beginning of each fiscal
year, the counsel will present to the commission its estimated
expenses attributable to the regulation of public utilities under
Section 386.020, RSMo.

A three-year phase-in will allow the counsel to utilize
allocations from the commission for its assessments.  After
Fiscal Year 2010, those allocations will be based upon
information maintained by the counsel.  The calculation of the
assessments is specified in the bill.  The total amount of the
counsel's assessment cannot exceed two hundredths of 1% of the
total gross intrastate operating revenues of all regulated
utilities.  The total amount of assessments from both the counsel
and the commission cannot exceed one-fourth of 1% of the total
gross intrastate operating revenues of all regulated utilities.
In order to allow these calculations, every regulated utility
must file a statement of its gross intrastate operating revenues
on or before March 31 with the commission.

The assessments rendered by the counsel will be made available to
the utilities on or before July 1 with the payment due either on
or before July 15 or in four equal installments throughout the
fiscal year.  The moneys from the assessments will be deposited
into the newly created Public Counsel Fund.  Moneys remaining in
the fund will not revert to the General Revenue Fund.

FISCAL NOTE:  Estimated Income on General Revenue Fund of $0 in
FY 2007, $803,630 in FY 2008, and $1,099,564 in FY 2009.  No
impact on Other State Funds in FY 2007, FY 2008, and FY 2009.

PROPONENTS:  Supporters say that the bill will provide the Office
of Public Counsel with stable funding instead of dealing with the
fluctuations in appropriations that has occurred in the past.
The assessment-based funding mechanism is used in one-third of
the states.  The bill will not cause utilities additional costs
but will benefit its customers.

Testifying for the bill were Representative Rector; Office of
Public Counsel, Department of Economic Development; Missouri
Energy Development Association; and AARP.

OPPONENTS:   There was no opposition voiced to the committee.

Jason Glahn, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:44 am