SS SCS SB 179 -- COST RECOVERY FOR UTILITY COMPANIES
This bill allows electrical, gas, or water corporations to apply
to the Missouri Public Service Commission for approval to make
rate adjustments in order to recover their costs. The commission
has the power to approve, modify, or reject any adjustment
mechanism after hearing and considering all the relevant factors.
The commission may approve the rate schedules if the adjustment
mechanism is reasonably designed to provide the utility an
opportunity to earn a fair equity return; includes provisions for
an annual true-up to remedy any over- or under-collections;
includes provisions to require the utility to file a general rate
case with an effective date of no later than four years after the
effective date of the initial adjustment mechanism
implementation; and includes provisions for prudence reviews of
the costs subject to the adjustment mechanism.
The bill will become effective January 1, 2006.