Commission signs off on ACA balances for Liberty Utilities, weighs items in Spire rate case
JEFFERSON CITY, Mo. – The Missouri Public Service Commission’s agenda meeting may have seemed to be a short meeting at first glance, with one tariff and new order on the docket, but the matter of case discussion proved to be an in-depth matter once again.
The commission took little time to arrive at a decision on the matter of Liberty Utilities’ actual cost adjustment (ACA) balances for the 2015-2016 ACA period, approving staff’s request that the commission closes the case and establish the ending palaces as set forth.
Chairman Daniel Hall noted that no opposition was presented and that the adjustments would true up both under-recoveries and over-recoveries.
But the real discussion came afterward, with the commissioners delving into a number of items that have risen following the rate case hearing for Spire, Inc.
The commissioners discussed several issues of the case, from income tax to pensions, but the most notable of their concerns revolved around short-term debt and whether it should be included in the capital structure.
“The first issue that needs to be addressed is the gas inventory carrying charges,” Hall said. “Whatever we decide on this issue affects whether or not we include short-term debt in the capital structure.”
Commissioner Bill Kenney said he did not believe that that the short-term debt should be included, saying they should run the gas inventory through the PGA. Commissioner Scott Rupp said he wanted to run it through the capital structure, while both Commissioner Maida Coleman and Ryan Silvey agreed with the decision of the chairman.
As for the question of whether the short-term debt should be included in the capital structure, all of the commissioners agreed that it should not be.
The third issue discussed was what the capital structure was, with the commission taking staff’s position to use the consolidated capital structure. But they said it would have to be reconfigured using the entire capital structure of Spire, Inc. and subtract the short-term debt.
They also agreed that the rate expenses should be shared 50-50, and agreed to accept staff’s position on the matter of pensions and the supplemental retirement plan.
Benjamin Peters was a reporter for The Missouri Times and Missouri Times Magazine and also produced the #MoLeg Podcast. He joined The Missouri Times in 2016 after working as a sports editor and TV news producer in mid-Missouri. Benjamin is a graduate of Missouri State University in Springfield.
