Missouri American asks to consolidate rates statewide

BRANSON MO NEWS:

Although Missouri American Water and various parties that have filed to intervene in its pending rate case before the Public Service Commission have reached an agreement on some of the issues in the case, two of them that affect the Joplin area the most directly remain unresolved.The agreement between Missouri American, various municipalities throughout the state, consumer groups, the PSC’s staff and the Office of Public Counsel was filed with the PSC on Thursday and deals with revenue requirements, depreciation rates and more, but it does not address the company’s request to base rates on planned future expenses or to establish a single, statewide rate structure.The agreement did, though, delay a set of evidentiary hearings on the matter for a second time. Originally scheduled for Feb. 26, then Friday, the hearings will now begin March 6.
In addition to an increase that would represent $74.7 million more in annual revenues for Missouri American in Missouri, the company is seeking two changes to the way its rates are calculated.The company has asked the commission for permission to eliminate its current three-zone rate structure for what it calls “single-tariff” rates, meaning all customers in the state would share rates — and company expenses for infrastructure and other upgrades built into them. The company’s other request is for permission to base its rates on planned future investments, as opposed to recovering the cost of projects that are already completed.Currently, Joplin falls within Missouri American’s southwest rate district, along with Branson and Warrensburg. Christie Barnhart, external affairs manager for Missouri American, said recently that the company believes all of its customers would benefit from the ability to spread expenses throughout the state, but especially those in Joplin. That’s because, she said, the area is facing some significant expense in the relatively near future as …