Modifies provisions relating to the expenses incurred for the regulation of public utilities
Summary
SB 653 revises Missouri law governing how the Public Service Commission (PSC) funds the costs of regulating public utilities. The bill amends section 386.370 to require the PSC to estimate its annual regulatory expenses, allocate those costs among categories of utilities, and assess each utility based on its gross intrastate operating revenues from the prior year. It also specifies that water and sewer corporations are to be treated as a single group for allocation purposes.
The bill raises the cap on the total amount the PSC may assess utilities for regulatory expenses from three hundred fifteen thousandths of one percent to three hundred fifty thousandths of one percent of total gross intrastate operating revenues. It preserves the existing payment schedule, allows installment payments, and continues to direct collections into the Public Service Commission Fund rather than the general revenue fund. Any year-end balance in the fund remains available for future PSC expenditures and is used to reduce the following year’s assessments.
Impact
SB 653 would directly affect the financing structure for utility regulation in Missouri by increasing the maximum assessment rate the PSC may charge regulated utilities. The change would apply to electrical, gas, water and sewer, heating, telephone, telegraph, and other public utilities under PSC jurisdiction, with assessments tied to each utility’s intrastate revenues. The bill does not change the PSC’s regulatory authority itself, but it would increase the amount of money available to support PSC operations and could modestly increase costs borne by regulated utilities, which may be passed through to customers depending on utility rate-setting practices.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available record. Based on the bill text, the measure appears administrative and fiscal in nature, aimed at adjusting a funding cap rather than changing substantive utility regulation. The caption and drafting suggest a technical update to maintain PSC funding levels, which often draws limited public attention unless utilities or consumer advocates object to higher assessments.
Contention
The main point of potential contention is the increase in the assessment cap, which would allow the PSC to collect more from regulated utilities. Utilities may view the higher cap as an added cost of doing business, while consumer advocates could be concerned that utilities may recover those costs through rates. Another possible issue is the continued use of gross intrastate operating revenues as the basis for allocation and assessment, which can affect different utility classes unevenly. No specific opposing or supporting stakeholders are identified in the provided materials, but regulated utilities and ratepayer interests would be the most likely groups to focus on the change.