Archive for June, 2007
Missouri Public Service Commission News Release
JEFFERSON CITY—To reflect estimated changes in the wholesale cost of natural gas for the summer season, Southern Missouri Gas Company, L.P. customers will see natural gas bills increase under a filing which will take effect on July 1, 2007. For more of the news release, click here.
THE ASSOCIATED PRESS
06/24/2007
JEFFERSON CITY — As Union Electric Co. prepared to open a mountaintop hydroelectric plant in 1963, some workers raised concerns about a staffing schedule that left no one onsite overnight to prevent potential problems from escalating into a disaster.
But state utility regulators sided with the electric company, ruling the plant was not inherently dangerous and required no overnight staff. For the the rest of the story, click here.
Before we are all brainwashed by high paid AmerenUE executivies into thinking they did a “Great Job” in restoring power to thousands of customers, let’s review the facts.
…Most of the outages occurred on Thursday night or in the early morning hours
of Friday, December 1st.
…There was little or no power restoration over the weekend based on Ameren’s
own numbers on the internet.
…AmerenUE claimed crews from other locations couldn’t get here quickly
because of impassable roads.
…150,000 customers still without service on Monday, December 4th
For all of the open letter, click here.
If you’ve ever been frustrated trying to navigate the computerized menu system of a company you’re calling, or sitting on hold forever just to get to a human being, you might like this new service: http://www.gethuman.com/us/. It’s a great new website that publishes so-called “secret” phone numbers and codes that allow you to get to an actual human being when calling a company for customer service…for more, click here.
Many of you have suspected that something was fishy about this winter’s out-of-control natural gas prices. We still do not know all of the answers. But thanks to a report just released by four Midwestern Attorneys General, including Missouri Attorney General Jay Nixon, we now know that good old supply and demand does not tell the real story.
The report, which you can read at the link below, was prepared by renowned consumer advocate Dr. Mark Cooper. He reveals that we have been paying natural gas bills that are much higher than the actual market for this essential commodity should reflect. He notes many flaws in the unregulated system for the financial trading for natural gas could be contributing to skyrocketing increases.
During the 2005 legislative session, regulated utilities combined (through an umbrella organization called MEDA, the Missouri Energy Development Association) to push through a heavily-lobbied package of surcharges.
It is the only law of its kind in the country.
Section 393.266 RSMo, which became effective on January 1, 2006, authorizes the Public Service Commission (PSC) to promulgate rules implementing these new surcharges. So far little progress has been made in developing these rules, as monopoly utilities reject the inclusion of any meaningful consumer protections in the rules.
Each of these surcharges would increase rates without a full audit and rate case at the PSC. Each of these surcharges allow “single-issue ratemaking”, an unfair method of setting rates because rates are changed without taking into account all relevant factors (i.e., changing rates for one increasing expense, but not offsetting it against other decreasing expenses).
Fuel Adjustment Clause (386.266.1)—This surcharge will allow fluctuating electric rates based on “fuel and purchased power” expenses. Your electric rates will become volatile, just as natural gas rates now fluctuate with the Purchased Gas Adjustment. This surcharge was struck down by the Missouri Supreme Court in 1979, but is being reauthorized.
Because electric companies have many sources of fuel and purchased power, the current system provides an incentive to aggressively procure the most efficient source. (Even AmerenUE’s CEO has admitted that the lack of a Fuel Adjustment Clause in the past encouraged efficiencies). The new law will reduce or eliminate that incentive, allowing costs to simply be “passed through” without the thorough audit of a rate case.
These fuel surcharges are likely to encourage the purchase of expensive power from outside Missouri.
A letter to the editor submitted by Alberta Slavin:
Dear Folks,
While we have enjoyed a very mild winter until this recent cold snap, we continue to pay very high gas bills. This despite the fact that the wholesale price of natural gas has dropped by over half since late December. Although Laclede lowered its price of gas—pga—by seven percent in January, clearly another adjustment is needed now.
But that probably won’t happen. That’s because the Missouri Public Service Commission only requires gas companies to adjust these prices four times a year, so Laclede should enjoy some hefty profits until April when they will be required to adjust their prices.
However, there is nothing to prevent Laclede from taking action to file for lower prices now. How about it, Laclede? We’re cold out here while we continue to pay exorbitant rates.
Sincerely,
Alberta Slavin
Consumers Council of Missouri
JEFFERSON CITY, Mo.(1/17/06) – Saying consumer interests are being ignored in lieu of a well-financed lobby for big business, officials with a new consumer advocacy group announced today in Jefferson City the creation of the Consumers Council of Missouri. For the full news release, click here.
Anyone can become a member of Consumers Council of Missouri. General membership dues are just $10 annually. To become a member, click here.
