Modifies provisions for water service connection
The bill will have a significant impact on the regulatory framework surrounding water and sewer utilities. By establishing clear definitions and procedures for the ratemaking rate base during the acquisition of small utilities by larger ones, the public service commission will have a standardized method to evaluate these transactions. The bill enables a smoother transition for customers during acquisitions, as it mandates that the acquiring large utility must continue to provide service to all customers served by the small utility at the time of sale. This consistency is vital for ensuring uninterrupted access to water services for consumers.
House Bill 1152 seeks to modify existing provisions related to large water public utilities in Missouri. The bill primarily focuses on defining the terms related to 'large water public utility' and 'small water utility' based on the number of customer connections they serve. A large water public utility is defined as one that provides service to more than eight thousand customer connections, while a small water utility serves eight thousand or fewer customer connections. This categorization is intended to streamline the regulatory requirements for these utilities and clarify acquisition processes.
Notable points of contention within discussions around Bill HB 1152 relate to its implications for customer service continuity and utility oversight. While the bill aims to provide clarity and efficiency in utility transactions, some stakeholders have raised concerns about the potential for diminished service quality and customer protections in cases of acquisition. The details about how appraisals will be conducted for determining ratemaking rates, particularly the inclusion of transaction costs, also sparked debate among legislators, highlighting the need to balance utility profits with consumer interests.