Modifies provisions relating to assessments against public utilities
The implementation of SB989 will significantly affect the financial obligations of public utilities concerning their regulatory assessments. The Missouri Public Service Commission will be responsible for estimating expenses annually and allocating these costs among different types of utilities—such as electrical, gas, water, and telecommunications companies—based on their revenue. This change aims to create a more equitable and transparent assessment system, which may lead to financial relief or increased costs for specific utilities depending on their revenue performance.
Senate Bill 989 aims to modify the existing provisions relating to the assessment of public utilities in the state of Missouri. Specifically, the bill repeals section 386.370 of the Revised Statutes of Missouri and introduces a new section that outlines the methodology for estimating and allocating expenses attributable to the regulation of various public utilities. The legislation seeks to streamline the assessment process, ensuring that utility companies are fairly and consistently evaluated based on their gross intrastate operating revenues.
Discussions surrounding SB989 have been largely neutral, primarily focusing on the technical and procedural aspects of the assessment methodology rather than eliciting emotional reactions. Stakeholders from the utility sector have generally expressed a willingness to adapt to the changes, provided that the methodologies employed by the commission are clear and justified. However, concerns have been raised regarding the potential for increased assessments if revenues do not align sufficiently with costs due to the new allocation methods.
There are points of contention regarding how the expenses will be estimated and allocated among different utility groups. Specifically, the bill's provisions that cap assessments to a certain percentage of revenues can lead to discussions about fairness and the potential for disparities in how costs are distributed among utilities. This is particularly notable for the telephone corporation group, which faces specific allocation rules intended to prevent excessive assessment burdens that could adversely affect their financial viability.