Fiscal Note - SB 0289 - Metrop. Sewer Dist. May Amend Charter To Place Sewer and Stormwater Services Under Jurisdiction of Missouri PSC
L.R. NO. 0842-02
BILL NO. SB 289
SUBJECT: Public Service Commission: Sewer District
TYPE: Original
DATE: February 7, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Public Service
Commission Fund *$0 *$0 *$0
Total Estimated
Net Effect on All
State Funds $0 $0 $0
*Income and costs to the Public Service Commission Fund net to $0.
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government ($537,599) ($568,688) ($583,555)
FISCAL ANALYSIS
ASSUMPTION
Officials of St. Louis County assume that this proposal would have no fiscal
impact to their county.
Officials of the Metropolitan Sewer District assumed that this proposal would
result in personnel costs, professional services and administrative expenses.
Officials of the Public Service Commission would request the following
personnel to carry out provisions of this proposal: an Utility Regulatory
Engineer I/II, an Utility Engineering Specialist III, an Utility Operations
Technical Specialist III, an Utility Operations Technical Specialist II, an
Economist II, 2 Utility Regulatory Auditor IV, one Utility Regulatory Auditor
III, one Consumer Services Specialist II, .5 Administrative Law Judge and .5
Legal Counsel.
The Utility Regulatory Engineer I/II would perform engineering analysis
relating to requests for rate increases and consumer complaints; perform
field investigations of facilities and equipment used to provide services and
perform necessary depreciation studies; prepare testimony and exhibits and
testify as an expert witness in hearings before the Commission.
The Utility Engineering Specialist III would perform engineering analysis
relating to sewer system operation and maintenance; make field investigations
regarding consumer complaints; prepare testimony and exhibits and testify at
hearings as an expert witness.
The Utility Operations Technical Specialist II and III would make field
inspections of consumer complaints, sewer operations, and sewer maintenance;
investigate and write reports on consumer complaints and system operations
problems; prepare testimony and exhibits for hearings; and testify at
hearings.
The .5 Administrative Law Judge would conduct hearings and handle contested
cases filed with the Commission.
The .5 Legal Counsel would represent staff in cases before the Commission,
provide legal assistance to the staff in general and to Commission in court
cases.
The Utility Regulatory Auditor III and IV would audit books and records to
establish cost of service for rate-setting purposes; monitor costs and
records to assure compliance with rules and regulations; prepare testimony
and exhibits for hearings; testify at hearings; and supervise audits.
The Consumer Services Specialist II would record and investigate consumer
complaints, resolve consumer complaints with regulated utilities, and verify
compliance with billing practices and tariffs filed by utilities.
The Economist II would review and make recommendations on utility company
rate design and class cost of service; provide testimony and exhibits as an
expert witness at hearings.
PSC officials also assume that if the intent of the proposal is for the PSC
to review the District's rates on the effective date of this proposal,
approximately $210,000 would be requested to contract with consultants to
perform the review. It is estimated one engineering consultant at $50,000
and one accounting consultant at $160,000 would be needed to determine
approximate levels of costs for the establishment of the initial rates to be
charged to the customers. The primary function of the engineering consultant
would be to develop a reasonable level of depreciation expense. The primary
function of the accounting consultant would be to develop all other operation
and maintenance expenses consistent with traditional rate-making principles.
PSC officials have not reflected estimated consultant expenses in this fiscal
estimate.
PSC officials noted that this District serves approximately 400,000 customers
in the City of St. Louis and St. Louis County which is almost equal to the
number of customers who are currently served by regulated privately owned
water and sewer companies. Regulation of a sewer utility of this size would
double the workload of the PSC's Water and Sewer Department Staff and would
generate additional workload for the Commission and staff assigned to other
divisions/departments.
Officials note also that the District operates six waste water treatment
facilities and that some storm sewer systems in the District are a century
old. Investigation of consumer complaints, monitoring of storm sewer system
maintenance and construction would require additional resources. The number
of complaints received relating to storm sewers by the District is not known
to the PSC. However, it is assumed that there would be a large number of
complaints.
PSC officials noted that costs of this proposal would be assessed according
to chapter 386.370 RSMo 1994 and monies deposited in to the PSC Fund. This
would result in an increase to Total State Revenue.
Oversight assumes the St. Louis Metropolitan Sewer District would be assessed
charges to cover the cost of regulation.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
PUBLIC SERVICE COMMISSION FUND
Income-Public Service Commission
Assessments against St. Louis Metropolitan
Sewer District $537,599 $568,688 $583,555
Cost-Public Service Commission (PSC)
Personal Service (10 FTE) ($277,081) ($340,945) ($349,468)
Fringe Benefits (79,051) (97,272) (99,703)
Expense and Equipment (181,467) (130,471) (134,384)
Total-Cost to PSC ($537,599) ($568,688) ($583,555)
ESTIMATED NET EFFECT TO
PUBLIC SERVICE COMMISSION FUND $ 0 $ 0 $ 0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
Cost-St. Louis Metropolitan Sewer District
PSC assessments ($537,599) ($568,688) ($583,555)
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
This proposal would put the St. Louis Metropolitan Sewer District under the
jurisdiction of the Public Service Commission.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements. It would
require rental space and that requirement is reflected in the request for
expense and equipment monies. This proposal would affect Total State
Revenues.
SOURCES OF INFORMATION
Department of Economic Development - Public Service Commission
St. Louis County
Metropolitan Sewer District
NOT RESPONDING - Department of Economic Development - Office of Public
Counsel
This Fiscal Note is not an official copy and should not be quoted or cited.