The proposed amendments will have a significant impact on how new utility rates are established and implemented. By providing the commission with authority to conduct hearings on ratemaking even before the new rates take effect, the bill aims to enhance consumer protections and ensure that utility rates are justified and reasonable. Additionally, the bill sets out specific procedures for utilities to update their base rates, which could facilitate a more transparent and accountable process for determining how rates reflect the actual costs incurred by utility companies in providing services.
Summary
House Bill 949 is designed to modify the regulatory framework within which state utility commissions operate concerning rate-making and public utility services. The bill specifically seeks to repeal section 393.150 of the Revised Statutes of Missouri and enacts a new section to enhance the commission's authority when assessing rates and charges proposed by gas, electric, water, and sewer corporations. One of the significant provisions allows the commission to suspend the implementation of new rates for up to 120 days while a hearing on their propriety is conducted, thus prioritizing a thorough review process before rates can take effect.
Contention
While the bill is viewed positively by proponents who advocate for increased regulatory oversight, it also raises potential concerns among utility companies regarding the delays and additional scrutiny that could come with more stringent review processes. There may be apprehensions about how these changes will affect the timely allocation of costs to consumers, particularly in urgently needed infrastructure improvements. Furthermore, opponents might argue that the increased power of the commission could lead to an overly bureaucratic process that complicates essential utility operations.