PSC discusses Ozark Shores Water sale, auditor request

JEFFERSON CITY, Mo. – The Missouri Public Service Commission (PSC) met yesterday for their regularly scheduled agenda meeting, approving new orders which will affect the bills of citizens in dozens of counties, crafting a future application approval for a water company sale, and discussing releasing documents to the state auditor.

A request filed by The Empire District Electric Company (Empire) to change the fuel adjustment charge (FAC) on the monthly bills of its electric customers was approved, decreasing the fuel adjustment rate (FAC). A residential customer using 1,000 kWh (kilowatt-hours) of electricity a month will see the FAC decrease by approximately $1.29 a month.  The change is expected to take effect on June 1, 2016.

The FAC change reflects Empire’s fuel and purchased power costs for the six month period of September 2014 through February 2015.  It also reflects Empire’s annual FAC true-up filing.

The Empire District Electric Company serves approximately 149,200 electric customers in the Missouri counties of Barry, Barton, Cedar, Christian, Dade, Dallas, Greene, Hickory, Jasper, Lawrence, McDonald, Newton, Polk, St. Clair, Stone and Taney.

A second request was approved to adjust the infrastructure system replacement surcharge (ISRS) for Laclede Gas Company – Laclede Division customers. The ISRS first appeared on customer bills in June 2004.

The ISRS adjustment reflects infrastructure replacement investments made by the natural gas company from September 1, 2014 through February 28, 2015.  These costs for natural gas pipeline replacements and relocations are not currently included in Laclede’s rates.

The current ISRS for residential customers of Laclede is $1.20 a month.  As a result of this case, the ISRS will be adjusted and residential customers will pay $1.85 a month effective May 22, 2015.

Laclede Gas Company-Laclede Division provides natural gas service to approximately 643,000 customers in the City of St. Louis as well as the Missouri counties of St. Louis, St. Charles, Butler, Iron, Franklin, Jefferson, Madison, Crawford, St. Francois and Ste. Genevieve.

Additionally, the Commission discussed upcoming cases, essentially crafting future orders.

The pending status of the approval of sale of Ozark Shores Water Company was discussed by the PSC.

The Office of Public Counsel has not entered an appearance into the Ozark Shores case, which was questioned by Chairman Robert Kenney. OPC represents rate payers, the case judge said a position could be implied from the silence. Ozark Shores Water Company has an elected board of directors.

The water company was purchased for $5.2 million, which reflected an independent appraisal by Boone Partners. Commissioners reasoned the $5.2 million was a reasonable price, despite some discussion on looking further into the appropriateness of the purchase price. Commissioner Daniel Hall contended that should anyone question the purchase price, it would not be done through the PSC, but through local or state prosecutors and investigators.

Commissioner Bill Kenney saluted the company for having not raised water rates since 1998.

“If the rates do go up, ratepayers have an avenue for dealing with that and it’s called voting,” Hall said.

Commissioners approved an option to approve the application at an upcoming meeting.

Additionally, commissioners discussed a request by the Office of the State Auditor, which was ultimately approved. Without discussion of highly confidential (HC) documents, the PSC agreed to discuss the auditor’s request outside of closed session.

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