JEFFERSON CITY, Mo. – The Office of Public Counsel (OPC) has asked for a formal stay in their investigation of Laclede Gas.
James Owen, the acting director of the OPC, said that they have actually found enough evidence supporting their initial complaint against the natural gas supplier, but they want to pursue the findings while Laclede also undergoes a rate case. He fears that if the complaint is ongoing during the rate case, it will give Laclede an excuse not to face the music.
“They’re required to come in under a statute that says you either come in for a rate case or some other proceeding,” he said. “We believe they would be able to consider this complaint as a proceeding, and what we want to do is take a complaint and a rate case proceeding at the same time so they have to come in.”
The OPC filed their complaint April 26 of this year, but contends the move was not political despite major utilities bills being moved to the informal calendar in the senate the same day, accusing the company of over-earning. The full report can be read below and the story continues after the break.
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Open in new tab Over-earning in the utility market oftentimes means the rate paid by consumers is too high. The Public Service Commission helps set those rates, but Owen says his office has found evidence that the rate charged by Laclede is higher than what the PSC agreed to.
Furthermore, Owen says that the office has uncovered evidence not only of over-earning but of shady practices regarding pensions, retirement, and other post-employment benefits that “cause concerns.”
“We have uncovered several things including issues with the policy and with their management that we take significant issue with,” he said. “Those aren’t going to be covered by an over-earnings cost process.”
Owen added that Laclede has fought the discovery process of the investigation for four months, which contributed to his desire to request a stay in the investigation. He believes a holistic approach to the multitude of problems that his office has uncovered would benefit the state.
“Our opinion has not changed on whether they’re over earning,” he said. “But I think in the end, the public’s going to be much better served by taking care of all of these things at once.”
