Keeping Utility Rates Low for Missourians

We are living in a time when many of you are struggling just to make ends meet. Wages are stagnate making it difficult for many hard working Missourians to pay their bills and keep food on the table. The last thing the Legislature needs to do is expand a utility’s ability to add surcharges onto your utility bill. That is exactly what the investor-owned gas companies would be able to do under the infrastructure system replacement surcharge (ISRS).

Like any other business, utility corporations encounter emergency situations, such as natural disasters, that involve costs above and beyond the scope of their usual budgetary planning. To more quickly recover these unexpected repair costs, investor-owned gas corporations may apply for a temporary ISRS on their customers’ bills.

The Missouri Public Service Commission (PSC), exists to regulate investor-owned utilities and to ensure our citizens receive safe and reliable utility services at fair and reasonable rates.  To adjust rates an investor-owned utility must go through the general rate making procedure with the PSC.  This includes hearing dates and public comment opportunities. This vetting process allows the PSC to verify that utility corporations can truly justify any rate increases, preventing wasteful spending and protecting consumer rates.

Unfortunately, there have been a number of attempts in recent years, including this current session, to pass legislation that would expand ISRS adjustment qualifications, essentially allowing a corporation to increase its ISRS in order to cover non-emergent maintenance and repair costs – meaning a corporation could raise its rates and keep them raised, since the maintenance and repair of our utility infrastructure systems is conceivably a never-ending project.

An ISRS is meant to be a temporary funding solution in response to an emergency situation; it was never intended to be a permanent vehicle for covering a corporation’s normal maintenance and repair costs. If our utility corporations aren’t charging consumers enough to cover the normal costs of doing business, then they need to argue their case before the PSC, using the established hearing process. An ISRS increase should only be sought in the event of a crisis situation, not as an ongoing remedy.

I’m not opposed to the ISRS as a means to fund repairs for unforeseen crisis situations; it’s important our utilities are functioning efficiently and safely. I do believe, however, that using the ISRS as a long-term revenue generator for regular maintenance and repair projects defies its intended scope.

On Thursday, Senate Bill 142, one of the recommendations to come out of the Lead Industry Task Force, was passed by the Senate. Whenever the EPA hands down a new regulation, it’s up to the Missouri Department of Natural Resources (DNR) to implement the EPA’s changes. Unfortunately, new regulations are often implemented without all the key players having enough time to review the proposed implementation plan and voice questions or concerns.

If signed into law, SB 142 would require DNR to collaborate with other state entities to prepare an impact report to be delivered to the General Assembly and the governor, laying out in detail the implementation procedure. We want to ensure Missourians, not just folks in Washington, have a chance to review EPA regulations and gain a comprehensive understanding of the health, safety and economic impact before they’re implemented, not after. Senate Bill 142 now heads to the House for further consideration.

In related news, I’m pleased to say the Lead Industry Task Force, which was reauthorized this session under Senate Concurrent Resolution 5, will hold its first meeting next Monday, April 27. I look forward to continuing the positive work this task force has already accomplished in bringing about a resolution to issues we’ve had in St. Francois County.

Also this week, several measures I filed this session were passed out of their respective House select committees and are now on the last leg of their journey. They include: Senate Bill 172, establishing minimum graduation requirements for a career and technical education high school certificate; Senate Bill 224, requiring a student to be lawfully present in the United States in order to receive scholarships through the A+ Schools Program; and Senate Bill 445, allowing Ameren to purchase and use their own air quality monitoring system to monitor sulfur dioxide emissions.

I was happy to welcome the following visitors to the Capitol this week: Bill Bunch with the East Missouri Action Agency; Julie Wanager of Hillsboro; Rachel Rhodes and grandson, Remington Ross, of Farmington; and Martha Resinger and David Bova, both of Ste. Genevieve.

Contact Me

I always appreciate hearing your comments, opinions and concerns. Please feel free to contact me in Jefferson City at (573) 751-4008. You may write me at Gary Romine, Missouri Senate, State Capitol, Jefferson City, MO 65101; or email me at gary.romine@senate.mo.gov; or www.senate.mo.gov/romine.

Sen. Romine’s Sponsored Legislation for 2015