The implications of HB92 are significant for state utility regulation. By modifying how utilities can account for ongoing construction projects, the bill potentially alters the financial landscape for electrical corporations. Supporters argue that this will foster more timely investments in infrastructure and allow companies to provide better service to residents. However, this could also result in higher rates for consumers in the short term if the costs are passed on as new expenses come into play. The bill's language emphasizes that any inclusion of costs must be appropriately justified to protect consumer interests.
Summary
House Bill 92 is a legislative initiative that seeks to amend existing regulations regarding electrical corporations in Missouri. Specifically, the bill proposes to repeal section 393.135 and enact new sections pertaining to the inclusion of construction work in progress in the rate base for utility services. This change aims to allow electrical corporations to recover costs associated with construction projects more effectively, ensuring that they can maintain operational stability and meet their service obligations to customers. The bill outlines specific criteria under which these costs may be included in the rate base, focusing on the justification of such expenditures.
Contention
Despite these intentions, there are points of contention regarding HB92. Critics have raised concerns about the fairness of allowing utilities to recover costs from customers for projects not yet operational. They argue this could lead to unjustified rate hikes and reduced accountability for utilities, especially if significant expenditures are deemed imprudent by regulatory commissions. The debate centers around balancing the needs of electrical corporations for financial flexibility against consumer protections necessary to prevent overreach in rate increases.