Rupp speaks of consequences for Missouri American Water Company
JEFFERSON CITY, Mo. – Though the Missouri Public Service Commission approved six orders and tariffs in the latest agenda meeting, the majority of discussion on Wednesday centered around Missouri American Water Company’s rate case.
Discussing the case as one of the final items on the day’s docket, the five commissioners intended to deal with a number of items, such as whether the company should continue to replace customer-owned lines as part of their lead service line replacement program.
However, it was clear that some tension still remained from the rate case hearing earlier in the year. In that hearing, the company had been directed to bring forward exhibits requested by the commissioners but failed to do so.
As such, Commissioner Scott Rupp spoke to his fellow commissioners, stating that he believed that the stipulation and agreement needed to be discussed.
“I still have huge problems with everything that transpired at the hearing. I firmly believe that what the company did was a challenge to the PSC authority,” he said. “They consciously chose to ignore a directive issued by a directive from this commission. It’s an issue of what’s going to happen for this commission moving forward.”
Rupp said that he felt he could not vote in favor of any stipulation or order, saying that to do so might set a precedent, as well as show a willingness to accept such behavior.
He quoted a line attributed to Steve Gruenter and Todd Whitaker, which says that “the culture of any organization is shaped by the worst behavior the leader is willing to tolerate.”
“It was very clear what this commission wanted of the company,” Chairman Daniel Hall said. “I agree with you that was an affront to the commission. But at the same time, I do think that the pilot that they agreed to operate as a major step forward.”
The particular program, Hall said, improved the deal significantly, though Rupp called it an attempt to placate the commission.
Commissioners Maida Coleman and Ryan Silvey were sympathetic to Rupp’s sentiment, being the two commissioners who would still hold a seat the next time a MAWC rate case could appear.
“I certainly do not condone that behavior,” Coleman said. “I do believe that this is a good time to walk through this case and see where we fall, but I never want to feel like any of our opinions are not important enough to vote, speak or participate in a discussion.”
“I don’t want anyone to get the idea that they can ignore this body,” Silvey said. “I’m not saying I wouldn’t vote ultimately for the stipulation, but I do think it’s important that we send a message to them and all of the companies.”
After that, the commissioners worked through the other details, but it remains clear that this issue will continue to play out in the coming weeks.
The commission signed off on several tariffs, including two from KCP&L G-MO and KCP&L, approving tariffs of estimated billing and budget billing.
They also approved an order suspending a tariff filing by Ameren Missouri, which would have had an effective date of April 25. Instead, with the stipulation filed on April 13th, the commission ordered that it be suspended until May 25, with Chairman Hall stating that he would like for Ameren to come in and explain the renewable choice program, as he understood it to mean the costs of a program would be covered by the subscribers.
In the matter of the complaint case against Branson Cedars Resort Utility Company, the commission noted that a stipulation and agreement that resolved the complaint had been reached, and signed off on an order that requires the company to file a rate case within 15 days of the approval of said stipulation.
Another issue the PSC has been carefully monitoring and delving into is that of the new federal tax cuts and what effect it will have. An order approved unanimously on Wednesday set a hearing schedule in the working case, with oral arguments set for May 24.
The final order of the day concerned the working case into distributed energy resources and staff’s recommendations in the matter.
“This is not unique to Missouri, but is a national issue,” Hall said, noting discussions that took place in D.C. last week.
The commission voted to accept the recommendations, noting that they were not making orders.
The next agenda meeting of the PSC is scheduled for April 25.
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.
