Massive Water Rate Increase: 45% proposal in St. Louis County. Consumers Council has the following concerns:

The request is based on an estimate of future expenses rather than audited costs, which means that consumers could be overcharged. Rates should be based on actual costs, not guesses.

It would add a charge that would raise rates when usage declines, a “save more, pay more” model. This is would disincentivize conservation and essentially shift the risk burden from the investor-owned utility company to the individual consumer.

Most significantly, the proposal would result in an increase in the St. Louis metro area of a whopping 45 percent!

Join us in voicing concerns.

http://www.stlamerican.com/news/columnists/guest_columnists/massive-water-rate-increase-proposed-in-st-louis-county/article_10b30b56-053c-11e8-af0f-bbf5202328c8.html

Formula rate bills before the MO Senate would punish the state’s consumers with the formula “save more — pay more.”

https://www.columbiamissourian.com/news/state_news/missouri-senators-seek-to-allow-utility-corporations-to-increase-rates/article_dfc665c4-0153-11e8-b80a-9b8c8e3ebffe.html

Consumer groups are concerned with new rate increase mechanisms proposed in legislation before the Missouri Senate.

http://stlouis.cbslocal.com/2018/01/23/ameren-seeks-support-for-plan-that-would-change-way-rate-hikes-approved/

Consumers Council of Missouri wants swift attention paid to the new corporate tax rate, which has fallen this year from 35%-to-21% and will bring massive savings to the state’s investor utilities.

The watchdog group says the companies will realize hundreds of millions of dollars in extra money if utility rates continue to be calculated based on the 35% rate.  Consumers Council notes electric companies in Massachusetts, Illinois, Oregon, Arizona and other states have announced plans to pass savings on to consumers as a result of the 40% drop in corporate income taxes.

https://www.missourinet.com/2018/01/23/consumer-watchdog-calls-for-reduction-in-missouri-utility-rates-after-massive-drop-in-corporate-tax-rates/

JEFFERSON CITY / ST. LOUIS — January 22, 2018

Consumers Council of Missouri is calling for the state of Missouri to take swift action to evaluate and the pass through to consumers the hundreds of millions of dollars utility companies will enjoy following the passage of the new tax law. Current utility rates are calculated based on a corporate tax of 35%, a rate which was just dropped by a whopping 40%.

Electric companies in Massachusetts, Illinois, Oregon, Arizona and other states have announced plans to pass these massive tax savings on to customers through lower rates and some of the largest utilities in the country have voluntarily established a plan to reduce rates. We are looking to Missouri to do the same.

The Public Service Commission has opened a docket to take comments from utility companies as well as the general public. We encourage consumers to weigh in and will be watching closely.

for more information contact:

Cara Spencer, Executive Director   cara@moconsumers.org, (314) 556-7379
John Coffman, Utility Consumer Counsel                               (573) 424-6779

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For most companies, the big federal tax cut flows straight to the bottom line. When it comes to regulated utilities, however, should the windfall go to consumers or investors?

http://www.stltoday.com/business/columns/david-nicklaus/utilities-can-t-keep-their-corporate-tax-cut-the-money/article_942e9b70-4b50-5b27-928b-96bb348f557d.html