Missouri Senate Bill SB5

Missouri 2025 Regular Session

• Introduced: 1/8/25
• Refer: 1/16/25

Caption

Modifies and creates new provisions relating to utilities

Impact

The bill is designed to enhance regulatory uniformity for water utilities, ultimately aiming to optimize operational efficiencies following acquisitions. By defining clear criteria for rate base assessments, the bill aims to streamline the regulatory process and provide predictability for both acquiring companies and small utility customers. This could potentially encourage larger utilities to invest in and improve services in smaller jurisdictions, which may result in better service delivery and infrastructure upgrades.

Summary

Senate Bill 5 seeks to amend and enact several provisions governing the regulation and rate-setting for small water utilities in Missouri. The primary focus of the bill is to establish a framework for the acquisition of small water utilities by larger public utilities. It prescribes how the ratemaking rate base for smaller water utilities will be determined, emphasizing a balance between the purchase price and the appraised value of the utility. Moreover, it mandates that the public service commission must issue its decision regarding the rate base within a specified timeframe following a proposed acquisition.

Contention

Despite its intentions, SB5 has faced scrutiny regarding the implications for local control over water utility governance. Critics argue that while facilitating acquisitions could yield benefits, it may also lead to larger utilities prioritizing profitability over community service. There are concerns that allowing larger public utilities to consolidate control could diminish accountability and responsiveness to local needs. Such concerns form a significant part of the discourse around the bill, with advocates urging for safeguards to protect customer interests and maintain local oversight over utility services.