To utilities, “increased efficiency” means getting your money even faster.
Source:
ST. LOUIS POST-DISPATCH
By Editorial Board
05/04/2010
Suppose you wanted more frequent pay raises at your job — not just once a year, but every six months. Fat chance, right?
Suppose you wanted less scrutiny from the boss when it came time to figure your raise. That way, the boss would have less opportunity to spot your errors or bring in experts to examine the quality of your work. What are the odds that you’d get it?
Now let’s suppose that you’re one of Missouri’s big utility companies. Instead of pay raises, you’re worried about rate hikes. Right now, your odds of getting twice-a-year raises look a lot better.
All you’ve got to do is persuade the Missouri Legislature to pass an anti-consumer bill within the next two weeks. There are four bills from which to choose, each containing twice-a-year rate hike provisions.
The Legislature adjourns May 14. Traditionally, in the frantic final weeks of the session, lawmakers have less time to consider what is in the bills on which they’re voting and less time to hear from angry constituents. This is the time of year that many bad ideas are transformed into law.
Utilities say the changes would “increase government efficiency.” If one passes, look for utilities to develop a more efficient way of reaching into your pocket — as if they needed the extra St. Louis went up 8.1 percent in January 2009. Just seven months later, AmerenUE was back before state regulators asking for 18 percent more, or $402 million. That request is pending, but AmerenUE has indicated that it soon will ask for more.
Under current law, the Public Service Commission must settle rate hike cases within 11 months. That means utilities generally are limited to one request each year.
Under the proposed new law, rate hike cases could last no more than six months, meaning utilities could file two requests each year.
That’s not just two rate hike cases for each electric company, including AmerenUE. It also means extra rate cases for water companies, including Missouri American Water, which is seeking a 21 percent rate hike, and for gas companies, including Laclede Gas, which has a $52.6 million rate hike request before utility regulators.None of the four proposed bills would allow additional staff for the PSC, which analyzes and rules on these incredibly complex cases. No more staff is allowed for the Public Counsel’s Office, which represents consumers in utility rate cases. In 2005, that office had 16 staff members working on utility rate cases. Today, it has eight to handle what potentially could be twice as many cases.
More cases and less time to finish them means less scrutiny. The extra time means millions of dollars in potential revenue for utility companies — and in payments from customers.
Consider that 18 percent rate hike request from AmerenUE that is pending. PSC staffers who analyzed the details claim that it is 40 percent too high. The PSC staff says $161 million of the $402 million extra revenue AmerenUE is seeking is for expenses that shouldn’t be figured into rates paid by residential and business customers.
Lawmakers who vote to increase the number of rate hike cases filed by utilities will have to answer to angry voters in November. For their sake, and the sake of overtaxed consumers, they should not approve these changes.
