JEFFERSON CITY, Mo. – In dismissing a motion to a complaint that Laclede Gas Company has been overearning. the Public Service Commission (PSC) allowed the Office of Public Counsel (OPC), who compiled the complaint, to do the Staff work typically reserved for commission staff.
The Office of Public Counsel (OPC) had filed a complaint in April in the middle of the legislative session, against Laclede, arguing that the utility had earned too much money and that rates should be lowered. The OPC based the complaint on a belief that Laclede had earned a 10.45 percent return on equity, viewed as excessive compared to the 9.6 percent return utilities normally see.
Their complaint was filed as the General Assembly was considering legislation that would allow Laclede to update its infrastructure, and some viewed it as hastily filed and with a political agenda. The fact that the OPC chose to utilize their staff to further continue the case and not PSC staff is seen as a win for Laclede.
“While there is an allegation that Laclede earned a 10.45% ROE in fiscal 2015, this derived figure is a mere conclusion, without any citation to the facts that support that conclusion,” Laclede wrote in its motion to dismiss. “The Commission should consider such a conclusion to be unsupported by factual allegations, and should disregard the conclusion and grant this motion to dismiss for failure to state a claim.”
While the PSC granted Laclede’s motion to dismiss, it did order the company to comply with OPC’s request for more data in another 5-0 decision. However, that data will be analyzed by the OPC and not the PSC staff.
“We’re happy that the commission is going allow us to continue to pursue this. We are happy that they are going to allow us to continue our discovery,” said Acting Public Counsel James Owen.
The OPC had submitted 103 data requests to Laclede. Laclede objected generally on the grounds that the request was too broad, while also objecting to several specific requests.
Laclede generally objected to the request, according to their filing opposing the motion to compel, because “OPC’s Complaint in this proceeding does not state a good faith claim upon which relief can be granted, and is subject to a pending Motion to Dismiss by Respondents.”
The OPC has argued that, while rate reviews are typically initiated by companies looking to raise rates, the public counsel would like to review Laclede’s rates because it believes it is earning too much.
“We want to see it done immediately. We don’t want to wait any longer than we have to. We would be encouraging of Laclede to do that,” Owen said.
