St. Louis Post-Dispatch: After legislative fight on overhaul, utility regulator seeks ‘middle ground’
After utilities made a major push to dramatically overhaul Missouri’s regulatory framework last legislative session, the state commission that oversees them believes it can help find a “middle ground.”
The Missouri Public Service Commission on Wednesday voted to open a case to bring together utilities, consumer groups and other parties in the hopes of brokering a conversation outside of the Legislature.
It follows a proposal during the legislative session that would have taken away much of the discretion the PSC has over setting rates and approving utility expenses. Electric utilities warned they needed faster reimbursement to incentivize investment in aging electricity infrastructure, but consumer groups countered it was a solution in search of a problem.
That proposal ultimately died, but PSC Chairman Daniel Hall signaled he’s open to changes in the law governing electric companies such as Ameren Missouri.
When powerful interests are duking it out under the Capitol dome in Jefferson City, especially on a topic as complicated as utility regulation, compromise can be elusive, he said.
“The stated purpose of that legislation was to incentivize grid modernization,” Hall said during the PSC’s Wednesday meeting. “I, for one, share the utilities’ concerns about our current form of regulation as it relates to grid modernization specifically and capital investment in general. I, however, thought the proposal in the General Assembly went too far and was a radical departure from 100 years of rate making.”
Ultimately, the PSC hopes its staff uses the input to put together a report, due in October. An interim Missouri Senate committee is also looking at the same issue, and the PSC signaled its report would be provided to aid the committee in its investigation.
Missouri Public Counsel James Owen, who represents the public in front of the PSC, said his office will participate, but he’s not sure what needs to be fixed.
“I just haven’t been pointed to what we’re trying to solve here,” Owen said.
Under Missouri law, utilities are required to provide safe and reliable service. In exchange, they’re given monopoly status and allowed to charge rates that cover their expenses and allow an almost guaranteed profit.
