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PSC discusses Ozark Shores Water sale, auditor request

JEFFERSON CITY, Mo. – The Missouri Public Service Commission (PSC) met yesterday for their regularly scheduled agenda meeting, approving new orders which will affect the bills of citizens in dozens of counties, crafting a future application approval for a water company sale, and discussing releasing documents to the state auditor.

A request filed by The Empire District Electric Company (Empire) to change the fuel adjustment charge (FAC) on the monthly bills of its electric customers was approved, decreasing the fuel adjustment rate (FAC). A residential customer using 1,000 kWh (kilowatt-hours) of electricity a month will see the FAC decrease by approximately $1.29 a month.  The change is expected to take effect on June 1, 2016.

The FAC change reflects Empire’s fuel and purchased power costs for the six month period of September 2014 through February 2015.  It also reflects Empire’s annual FAC true-up filing.

The Empire District Electric Company serves approximately 149,200 electric customers in the Missouri counties of Barry, Barton, Cedar, Christian, Dade, Dallas, Greene, Hickory, Jasper, Lawrence, McDonald, Newton, Polk, St. Clair, Stone and Taney.

A second request was approved to adjust the infrastructure system replacement surcharge (ISRS) for Laclede Gas Company – Laclede Division customers. The ISRS first appeared on customer bills in June 2004.

The ISRS adjustment reflects infrastructure replacement investments made by the natural gas company from September 1, 2014 through February 28, 2015.  These costs for natural gas pipeline replacements and relocations are not currently included in Laclede’s rates.

The current ISRS for residential customers of Laclede is $1.20 a month.  As a result of this case, the ISRS will be adjusted and residential customers will pay $1.85 a month effective May 22, 2015.

Laclede Gas Company-Laclede Division provides natural gas service to approximately 643,000 customers in the City of St. Louis as well as the Missouri counties of St. Louis, St. Charles, Butler, Iron, Franklin, Jefferson, Madison, Crawford, St. Francois and Ste. Genevieve.

Additionally, the Commission discussed upcoming cases, essentially crafting future orders.

The pending status of the approval of sale of Ozark Shores Water Company was discussed by the PSC.

The Office of Public Counsel has not entered an appearance into the Ozark Shores case, which was questioned by Chairman Robert Kenney. OPC represents rate payers, the case judge said a position could be implied from the silence. Ozark Shores Water Company has an elected board of directors.

The water company was purchased for $5.2 million, which reflected an independent appraisal by Boone Partners. Commissioners reasoned the $5.2 million was a reasonable price, despite some discussion on looking further into the appropriateness of the purchase price. Commissioner Daniel Hall contended that should anyone question the purchase price, it would not be done through the PSC, but through local or state prosecutors and investigators.

Commissioner Bill Kenney saluted the company for having not raised water rates since 1998.

“If the rates do go up, ratepayers have an avenue for dealing with that and it’s called voting,” Hall said.

Commissioners approved an option to approve the application at an upcoming meeting.

Additionally, commissioners discussed a request by the Office of the State Auditor, which was ultimately approved. Without discussion of highly confidential (HC) documents, the PSC agreed to discuss the auditor’s request outside of closed session.

 The State Auditor’s Office requested highly confidential documents from the PSC regarding the Liberty Utilities rate case. The confidential documents include individual invoices, but the commissioners concluded the confidential nature of the documents would not be exposed during an audit, which generally are reported in vague and general terms.
Regardless of the authorization, the commission did not agree to a blanket authorization for document release to the auditor. Blanket authorization would prevent the commission from having to individually assess each request, though a Staff member pointed out that the Auditor’s office has full access to any state department or commission’s documents, even if supplied to the party by a third party.
Commissioner Steve Stoll shared that he would be fine with a blanket authorization, assuming the documents stayed confidential, but Commissioners Kenney and Hall were less open to it, having concerns for commission awareness and confidential document treatment.
Though Chairman Kenney originally was fine with a blanket authorization for the sake of “economy and efficiency,” the commission ultimately denied a blanket authorization in order to ensure the commission is fully aware of each released document to the auditor’s office.
Next week’s agenda meeting is cancelled.
 Agenda
Tariff and New Orders
Item No. Case/Tracking No. Company Name/Brief Description Lead Staff/Additional Staff Contact(s)
1. EO-2015-0248 Empire District Electric Company, The — Order Approving Fuel Adjustment Clause True-up Filing Jones
2. ER-2015-0247 Empire District Electric Company, The — Order Approving Fuel Adjustment Clause Tariff Sheet Jones
3. GC-2015-0111 Laclede Gas Company — Order Granting Request for Rehearing and Setting Prehearing Conference Jones
4. ER-2014-0258 Union Electric Company — Order Approving Compliance Tariff Sheets Woodruff
5. GO-2015-0269 Laclede Gas Company — Order Regarding Adjusted ISRS Rates Burton
Case Discussion
Item No. Case No. Company Name/Brief Description Lead Staff/Additional Staff Contact(s)
1. GC-2014-0202 Summit Natural Gas of Missouri, Inc. — Case Discussion Memo and Draft Report and Order Jones
2. EO-2015-0055 Union Electric Company — Ameren MEEIA Case File No. EO-2015-0055 Pre-hearing memo Hearing date: May 27-29, June 1, 8:30 a.m. each day Pridgin
3. WM-2015-0231 Ozark Shores Water Company — Case Discussion Memo Jordan
Other Discussion
Other Description Brief Description Lead Staff/Additional Staff Contact(s)
Commission Scheduling Matters Kenney (Robert)
Legislation Kenney (Robert)
Budget Kenney (Robert)
Other Closed Minutes for May 13, 2015. Woodruff
Closed Session Kenney (Robert)
Closed Session Request by State Auditors for HC document from Case GR-2014-0152. Pursuant to Section 386.480, RSMo., the Commission must vote to release the information. Thompson, Brueggemann
Litigation Kenney (Robert)
Personnel Kenney (Robert)