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This Week in the Missouri PSC: Sept. 27, 2017

PSC looks to aid small utilities by streamlining rate case process

JEFFERSON CITY, Mo. – All seats were filled at this week’s agenda meeting of the Missouri Public Service Commission. Five orders and new tariffs filled the docket, as well as one item for case discussion.

The commission on Wednesday afternoon quickly worked through each item, finishing the meeting in just 25 minutes before preparing to head back down for a hearing regarding Missouri American Water’s AAO.

The biggest headline to pull from Wednesday’s meeting might the fourth order of the day, which concerned a proposed rule the PSC staff had been working on for some time.

“This is a rule that we have been working on for over two years,” Chairman Daniel Hall said. ““This will be a significant improvement on how we regulate small utilities and makes it very clear that we understand that a small utility with 50 customers is a vastly different enterprise than a utility with a million customers, and we need to have a rate case process that reflects that.”

The proposed rules seek to streamline the rate case process for small utilities and provide additional staff assistance, all while reducing the need for the small utilities to hire an attorney.

The proposal was approved 5-0.

In addition to that, the PSC also unanimously approved an order allowing Staff to open a working case to review and address the commission’s rules relating to cogeneration and net metering. Chairman Hall noted that it’s become a hot issue nationwide, and said that it makes sense to look at the rules while they’re in process of looking at all of the commission’s orders as required by Gov. Eric Greitens’ executive order. The commission will open a workshop docket allowing stakeholders to respond with comments by Oct. 15.

The PSC also approved Missouri-American Water Company’s request for a certificate of convenience and necessity (CCN) to provide sewer services to Homestead Estates in St. Louis County. MAWC already provides water but would acquire the sewer assets from the homeowner’s association. MAWC says they would provide the service with rates similar to that of their Cedar Hill service area, which comes at about $66.93 per month.

The commission also approved Ameren Missouri’s MEEIA Cycle 2 Program, as well as an order setting a schedule for the rate increase request by Indian Hills. A local public hearing is scheduled for Wednesday, Oct. 18 in Cuba at 6 p.m. The evidentiary hearing for that case is scheduled for Nov. 27.

The most time-consuming part of the meeting was the case discussion on proposed updates to the manufactured housing rules following an earlier hearing.

The PSC agreed with staff’s proposals, noting that staff had backed off on their initial stances on several issues, working with industry members to put together the final product.

Some of the issues that popped up included the imposition of fees, which staff had suggested making mandatory across the board, but now recommends to be discretionary. They also found a price for decals that meet in the middle for a compromise, as well a solution to reporting requirements. According to the judge handling the case, staff has been working on new computer software that they hope to get online in the near future, which should make the process easier for everyone.

Chairman Hall also called the proposed time period for inspections – one and two-year inspections – was reasonable.

The proposal needs to be approved by the PSC before being sent to the Governor’s Office before heading to JCAR and then the Secretary of State.

All of the commissioners nodded their approval, with Commissioner Bill Kenney saying that staff did an excellent job of putting together language that makes sense.