Modifies provisions relating to large water public utilities
Impact
If enacted, SB567 changes the way acquisitions of small water utilities are handled, impacting how services are regulated and how companies may financialize these transactions. The bill seeks to streamline the ratemaking process, ensuring that fair market evaluations of small water utilities occur and establishing protocols for integrating them into existing larger utility systems. This could lead to more efficient operations for larger utilities, as they are incentivized to absorb smaller utilities within their infrastructure, thereby extending their customer bases and operational efficiencies.
Summary
Senate Bill 567 aims to modify regulations relating to large water public utilities in Missouri by repealing existing sections and enacting new provisions that establish how small water utilities can be acquired by larger ones. The bill defines what constitutes a large water public utility, stipulating that it must regularly provide water or sewer service to over eight thousand customer connections. It creates a framework for assessing the fair market value of small water utilities during acquisitions and clarifies mechanisms for ratemaking for the purchasing large water utilities upon acquisition.
Contention
Debate surrounding SB567 primarily revolves around concerns that the consolidation of small utilities into larger ones may undermine local control over water resources. Critics argue that smaller communities may lose their ability to address specific needs directly through local governance, as decision-making power shifts towards large entities. Advocacy groups may contend that the metrics for determining fair market value could favor larger utilities disproportionately, potentially leading to increased costs for consumers as these larger entities expand their customer bases without corresponding local accountability.