HCS HB 673 -- UTILITY RATES

SPONSOR:  Bivins

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Energy and Environment by a vote of 8 to 4.

This substitute requires the Missouri Public Service Commission
to find that a rate adjustment is necessary to provide an
electrical, gas, or water utility with its authorized profit and
that the rate adjustment mechanism will prevent the utility from
exceeding its authorized profit before approving any of the rate
modifications otherwise allowable under subsections 1 - 3 of
Section 386.266, RSMo.

When considering rate adjustments, the commission may take into
account whether an adjustment will result in a just and
reasonable return on equity.

FISCAL NOTE:  No impact on state funds in FY 2008, FY 2009, and
FY 2010.

PROPONENTS:  Supporters say that the bill will ensure that
customers receive fair treatment and will clarify the legislative
intent regarding the rate of return that utilities should
receive.  High utility rates pose a serious threat to all
Missouri businesses.

Testifying for the bill were Representative Dempsey; Gareth
Kajander, Monsanto Corporation; Wayne Rich, Doe Run Company;
Missouri Association of Social Welfare; Missouri Energy Group;
AARP Missouri State Office; Ford Motor Company; General Motors
Corporation; and DaimlerChrysler Corporation.

OPPONENTS:  Those who oppose the bill say that it will discourage
investment in electric utilities and violate the compromise
achieved by Senate Bill 179 in 2005.  Missouri has very cheap
consumer and industrial electric rates.  Forty-four states have
higher consumer rates, and 37 have higher industrial energy rates
than Missouri.

Testifying against the bill were Bill Gipson, General Electric;
Missouri Energy Development Association; and Aquila,
Incorporated.

OTHERS:  Others testifying on the bill say that it is very
difficult to set rates to achieve certain goals and the Missouri
Public Service Commission does ensure that utilities do not earn
excessive profits in the long term.

Testifying on the bill was Missouri Public Service Commission.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:20 am