Modifies provisions relating to the purchase of small water utilities by large water public utilities
The proposed legislation will likely streamline the process by which large water utilities can acquire smaller counterparts, potentially leading to greater efficiency in water service provision across Missouri. However, this bill also emphasizes the role of the public service commission, which must independently determine that such acquisitions align with the public interest. This means that just because a large utility opts to follow these procedures, it does not automatically mean the acquisition will be deemed in the public's best interest, which introduces a necessary level of oversight into the process.
Senate Bill 367 introduces new provisions regarding the acquisition of small water utilities by larger public utilities in Missouri. The bill seeks to establish a standardized procedure for determining the ratemaking rate base when a large water utility purchases a small water utility. It outlines the definitions of large and small water utilities and mandates a formal appraisal process involving three appointed appraisers to establish the fair market value of the small water utility being acquired. This component is crucial as it aims to ensure that the acquisition process is transparent and fair to both utility entities and the customers they serve.
Key points of contention surrounding SB 367 include concerns over local control and the implications of such acquisitions on service quality and pricing for residents served by small utilities. Critics of the bill may argue that the consolidation of utilities could lead to a monopoly-like situation, diminishing competition and potentially raising rates for customers. Proponents, on the other hand, may advocate that such mergers can enhance operational efficiency and improve service reliability through the pooling of resources, suggesting a trade-off between local control and broader service improvements.