Utility rates could rise faster

Missouri’s investor-owned utilities companies will be able to apply to the Missouri Public Service Commission for rate changes between cases beginning Jan. 1, 2006.

Senate Bill 179, signed July 14, gives the commission the opportunity to approve rate changes for Missouri’s utilities companies who demonstrate a convincing need for the desired change.

Rate changes currently are approved through scheduled rate cases. Under the new law, utilities companies will be able to raise or lower rates while avoiding much of the time-consuming procedures of before, said Kevin Kelly, public information administrator for the commission.

Springfield’s City Utilities cannot apply for interim rate changes because the company is publicly owned, but Joplin-based Empire District Electric can.

Empire District Electric serves cities surrounding Springfield, including Republic and Ozark.

The company can apply for an increase to fund fuel or purchased power costs or environmental compliance costs.

Amy Bass, director of corporate communications at Empire District Electric, said the company was approved for a rate increase earlier this year, so there are no plans to apply to the commission yet.

“It’s designed to allow the commission to grant us release for any variations in the cost of fuel adjustments, but we will not take advantage of that for several years,” she said.

According to the bill, all customers will be notified of any interim rate changes on their monthly bills.

The commission is holding several roundtable discussions before Nov. 21 for those wishing to provide input on the new law. The discussions have not been scheduled yet.

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