Requires utilities to reimburse customer losses due to power outages
Impact
The bill establishes a new legal framework that holds electric utilities financially responsible for damages incurred by customers due to power outages and fluctuations in service. Notably, if a utility fails to meet its obligations, the affected municipality or local government must also be compensated for related emergency expenses. This creates a direct financial incentive for utilities to enhance their infrastructure and reliability to avoid costly reimbursements, thereby potentially improving overall service to consumers and municipalities alike.
Summary
House Bill 386 introduces significant amendments to Chapter 386 of Missouri revised statutes, specifically targeting the issue of customer reimbursements following power outages caused by investor-owned electric utilities. The bill mandates that utilities must compensate customers who experience continuous power interruptions exceeding four hours and that result in diminished voltage transmission. Compensation is intended to cover all actual damages incurred, including spoilage of food, while explicitly excluding consequential damages. This provision is aimed at ensuring greater accountability from electric utilities to their customers during service disruptions.
Contention
A critical aspect of HB386 involves provisions that allow utilities to seek waivers from reimbursement obligations under specific circumstances, such as unavoidable damage from weather events or customer tampering. This introduces a layer of complexity and potential contention, as customers may contest the validity of a utility's waivers. Additionally, the requirement that utilities cannot recover losses incurred from complying with the bill from ratepayers adds a level of financial pressure on these companies, which may lead to pushback from utility companies concerned about their profit margins and operational costs.
Requires municipalities and the department of transportation to reimburse non-rate regulated utilities for site relocation costs incurred due to road maintenance