Modifies provisions related to utility rates
One of the main effects of SB597 is that it limits the maximum amount that can be assessed on the total gross intrastate operating revenues for public utilities. Beginning in 2024, the total assessment rate will cap at 0.35%, increasing by 0.01% every two years until it reaches a maximum of 0.5%. This modification could impact how public utilities manage their finances and their regulatory compliance costs, potentially leading to changes in service pricing for consumers. It also establishes a clearer funding mechanism for the PSC, as generated funds will be directed to a dedicated Public Service Commission Fund.
Senate Bill 597, introduced by Senator Fitzwater, modifies the provisions related to assessments against public utilities in Missouri. The bill repeals the existing section 386.370 of the Revised Statutes of Missouri and enacts a new section. This new section outlines how the Public Service Commission (PSC) will estimate expenses incurred during the fiscal year related to the regulation of various public utilities, including electrical and gas corporations. The bill also specifies that assessments will be made based on gross intrastate operating revenues, ensuring that costs are fairly distributed among utility companies.
Discussions surrounding SB597 reflect a general sense of cautious optimism. Supporters believe that clearly defining the methods of assessment will lead to more predictable and manageable costs for utility companies and ultimately benefit consumers. However, there is concern among some stakeholders regarding the long-term implications of capping funding for regulatory oversight, which could affect the PSC's ability to maintain rigorous oversight of the utilities it regulates.
Notable points of contention with SB597 include the balance between providing adequate funding for the PSC and ensuring reasonable cost assessments for utility companies. Opponents may argue that the incremental increases in assessment caps could still lead to high costs in the long run, and raise concerns about the effectiveness of utility regulation if funding does not keep pace with the regulatory demands. Ensuring that the PSC can operate effectively while managing the costs imposed on utilities remains a central aspect of the debate.