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The State of Missouri Public Service Commission (MPSC) An Overview.

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Presentation on theme: "The State of Missouri Public Service Commission (MPSC) An Overview."— Presentation transcript:

1 The State of Missouri Public Service Commission (MPSC) An Overview

2 We are the State of Missouri’s utility regulatory agency.

3 Overview  Created by the State General Assembly in  Regulate over 1000 utilities who provide electric, gas, telecommunication, water, and sewer services to over 5 million residents.  Approximately 200 staff members and five Commissioners.

4 Overview (continued)  Funded through assessments of investor-owned utilities (IOUs) based on their gross operating revenue in Missouri.  Fiscal year runs from July 1 to June 30.  FY 2006 appropriation: $13.77M and full-time employees (FTE).

5 Overview (continued)  Five Commissioners are appointed by the Governor in staggered, six- year terms.  Staff consist of experts in fields of law, engineering, accounting, economics, finance, business and public administration.

6 The Commissioners Connie MurrayJeff Davis, ChairSteve Gaw Robert M. Clayton, IIILinward “Lin” Appling

7 Our Mission  …ensure Missouri consumers receive safe, adequate, efficient and affordable services while allowing utility companies an opportunity to earn a reasonable return on their investment.  The Commission and its staff are dedicated to fulfilling these public interest goals.

8 Delicate Balance  MPSC must assure safe, adequate, reliable utility service at just and reasonable rates… AND  Provide utility shareholders an opportunity to earn a reasonable return on their investments.

9 MPSC Regulates Investor-owned Utilities Manufactured Housing Electric Natural gas Telecommunication Water and sewer services

10 Electric  Four regulated electric utilities (AmerenUE, Aquila, Empire District Electric, Kansas City Power & Light).  Serving nearly 2 million customers.  More than 50% of those customers are served by AmerenUE.  Electric operating revenues of more than $3 billion (US) in 2003.

11 Natural Gas  Seven regulated gas utilities (AmerenUE, Aquila, Atmos, Fidelity, Laclede, Missouri Gas Energy, Southern Missouri Gas).  Serving nearly 1.5 million customers.  Over 80% served by Laclede and Missouri Gas Energy.  Gas operating revenues totaled more than $1.4 billion in 2003.

12 Telecommunication  More than 3 million phone lines in Missouri.  88 Competitive Local Exchange Companies.  43 Local Telephone Companies  495 Interexchange Companies  298 Private Pay Phone Providers

13 Water & Sewer  Mostly small companies, ranging in size from 20 to 1,500 customers.  More than 90% of water customers are served by Missouri-American Water Company.  Approximately 13,000 sewer customers served by 58 companies.

14 Manufactured Housing  Registered/regulated manufacturers: 176  Registered/regulated dealers: 330  Manufactured Housing inspectors performed approximately 300 inspections instigated by Consumer Complaints in 2004.

15 Facts Regarding Missouri Utilities  Missouri’s investor-owned electric utilities ARE NOT “deregulated”.  The MPSC DOES NOT regulate the price of wholesale natural gas.  The 1996 Telecommunications Act attempts to encourage competition within the industry.  There are no federal laws governing water and sewer rates.

16 Electric

17 Electric Issues  Rate cases.  Mergers.  Monitoring federal government (FERC) activities.  Utility preparedness.

18 Electric Industry  Planning -- MPSC meets with companies twice a year to discuss issues related to demand, growth, available supplies, and resource planning.  Monitor Trends -- Some states have restructured their retail electric markets, but results have not always helped consumers (e.g., California and Montana).

19 Electric - Federal Activities  NARUC Electricity Committee.  FERC Notices and Interventions.  Regional Transmission Pricing.  Transmission Congestion Management and Pricing.  NARUC Energy and Environment Staff Subcommittee.  Work on Standard Market Design (SMD) Policy.

20 Natural Gas

21 Natural Gas Issues  Gas price hikes.  Review of Purchased Gas Adjustment (PGA) clauses for all Local Distribution Companies.  Energy assistance funding.  Consumer alert programs.  Intervention at FERC.

22 Gas - Federal Activities  Monitor/Intervene/Participate in natural gas pipeline certificate, rate, and tariff cases before FERC.  Monitor/Comment/Participate in FERC gas policy and rulemaking proceedings.  Monitor natural gas industry developments on the national level.  Provide technical support in cases or projects.

23 Telecommunication

24 Telecommunication Issues  Monitoring local telephone competition service.  Revising service and billing practices.  Monitoring federal telecommunications activities (FCC).  Arbitration of interconnection agreements.

25 Telecommunication Fact Since the MPSC first authorized local exchange telephone competition in 1997, a total of 90 companies have been authorized by the MPSC to provide telecommunications service in competition with the traditional incumbent local exchange carrier.

26 MPSC Helping Consumers  Consumer Services staff assist with problems.  Investigate service and billing disputes.  Investigate, enforce, and monitor utility safety issues.  Consumer contact through website or State-wide, Toll-free Consumer Hotline:  Saved or recovered more than $1 million over last 5 years.

27

28 Questions? Visit the MPSC web at: Or the MPSC at:


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