Codifies the public service commission's cold weather shut off moratorium for all electric and gas utilities in the state
Impact
The bill will amend chapter 393 of Missouri statutes by adding a new section that outlines conditions under which utility service may not be terminated for lack of payment. The legislative intent is to safeguard vulnerable populations, including low-income residents who may face severe hardship if their heating services are cut during winter months. This change has the potential to significantly impact the operational policies of utility companies, requiring them to modify how they handle service terminations and payments in accordance with the new standards mandated by the state.
Summary
House Bill 1538 seeks to formalize the cold weather shutoff moratorium currently enforced by the public service commission for all electric and gas utilities in the state of Missouri. This law is designed to protect residential users from losing service during extreme cold weather conditions. Specifically, the bill prohibits the discontinuance of gas and electric services for nonpayment during designated cold weather periods, which include days when the temperature is forecasted to drop below thirty-two degrees Fahrenheit, especially between November 1 and March 31 for low-income disabled customers who comply with payment plans.
Contention
While the bill presents a protective measure for consumers, notable points of contention may arise regarding its implications on utility operations and revenue collection. Critics may argue that such restrictions on service discontinuation could lead to increased operational costs for utility companies, potentially resulting in higher rates for all consumers. Furthermore, there may be discussions on ensuring that the balance between consumer protection and the financial viability of utility providers is maintained, especially given the potential for abuse by some customers who might neglect their bills under the moratorium protection.