The State of Missouri Public Service Commission (MPSC)

An Overview

We are the State of Missouri’s utility regulatory agency.

Overview

Created by the State General Assembly in 1913.

Regulate over 1000 utilities who provide electric, gas, telecommunication, water, and sewer services to over 5 million residents.

Approximately 200 staff members and five Commissioners.

Overview (continued)

Funded through assessments of investor-owned utilities (IOUs) based on their gross operating revenue in Missouri.

Fiscal year runs from July 1 to June 30.

FY 2006 appropriation: $13.77M and 194.5 full-time employees (FTE).

Overview (continued)

Five Commissioners are appointed by the Governor in staggered, six-year terms.

Staff consist of experts in fields of law, engineering, accounting, economics, finance, business and public administration.

The Commissioners

Connie MurrayJeff Davis, Chair Steve Gaw

Robert M. Clayton, III Linward “Lin” Appling

Our Mission

…ensure Missouri consumers receive safe, adequate, efficient and affordable services while allowing utility companies an opportunity to earn a reasonable return on their investment.

The Commission and its staff are dedicated to fulfilling these public interest goals.

Delicate Balance

MPSC must assure safe, adequate, reliable utility service at just and reasonable rates…

AND Provide utility shareholders an

opportunity to earn a reasonable return on their investments.

MPSC Regulates Investor-owned Utilities

Manufactured Housing

Electric

Natural gas

Telecommunication

Water and sewer services

Electric

Four regulated electric utilities (AmerenUE, Aquila, Empire District Electric, Kansas City Power & Light).

Serving nearly 2 million customers. More than 50% of those customers

are served by AmerenUE. Electric operating revenues of more

than $3 billion (US) in 2003.

Natural Gas

Seven regulated gas utilities (AmerenUE, Aquila, Atmos, Fidelity, Laclede, Missouri Gas Energy, Southern Missouri Gas).

Serving nearly 1.5 million customers. Over 80% served by Laclede and Missouri

Gas Energy. Gas operating revenues totaled more than

$1.4 billion in 2003.

Telecommunication

More than 3 million phone lines in Missouri.

88 Competitive Local Exchange Companies.

43 Local Telephone Companies 495 Interexchange Companies 298 Private Pay Phone Providers

Water & Sewer

Mostly small companies, ranging in size from 20 to 1,500 customers.

More than 90% of water customers are served by Missouri-American Water Company.

Approximately 13,000 sewer customers served by 58 companies.

Manufactured Housing

Registered/regulated manufacturers: 176

Registered/regulated dealers: 330 Manufactured Housing inspectors

performed approximately 300 inspections instigated by Consumer Complaints in 2004.

Facts Regarding Missouri Utilities

Missouri’s investor-owned electric utilities ARE NOT “deregulated”.

The MPSC DOES NOT regulate the price of wholesale natural gas.

The 1996 Telecommunications Act attempts to encourage competition within the industry.

There are no federal laws governing water and sewer rates.

Electric

Electric Issues

Rate cases. Mergers. Monitoring federal government

(FERC) activities. Utility preparedness.

Electric Industry

Planning -- MPSC meets with companies twice a year to discuss issues related to demand, growth, available supplies, and resource planning.

Monitor Trends -- Some states have restructured their retail electric markets, but results have not always helped consumers (e.g., California and Montana).

Electric - Federal Activities

NARUC Electricity Committee. FERC Notices and Interventions. Regional Transmission Pricing. Transmission Congestion

Management and Pricing. NARUC Energy and Environment

Staff Subcommittee. Work on Standard Market Design

(SMD) Policy.

Natural Gas

Natural Gas Issues

Gas price hikes. Review of Purchased Gas

Adjustment (PGA) clauses for all Local Distribution Companies.

Energy assistance funding. Consumer alert programs. Intervention at FERC.

Gas - Federal Activities

Monitor/Intervene/Participate in natural gas pipeline certificate, rate, and tariff cases before FERC.

Monitor/Comment/Participate in FERC gas policy and rulemaking proceedings.

Monitor natural gas industry developments on the national level.

Provide technical support in cases or projects.

Telecommunication

Telecommunication Issues

Monitoring local telephone competition service.

Revising service and billing practices.

Monitoring federal telecommunications activities (FCC).

Arbitration of interconnection agreements.

Telecommunication Fact

Since the MPSC first authorized local exchange telephone competition in 1997, a total of 90 companies have been authorized by the MPSC to provide telecommunications service in competition with the traditional incumbent local exchange carrier.

MPSC Helping Consumers

Consumer Services staff assist with problems.

Investigate service and billing disputes. Investigate, enforce, and monitor utility

safety issues. Consumer contact through website or

State-wide, Toll-free Consumer Hotline: 1-800-392-4211.

Saved or recovered more than $1 million over last 5 years.

Consumer Savings

323,280

552,834

543,354

FY '04

FY '03

FY '02

Questions?

Visit the MPSC web at:

http://psc.mo.gov

Or email the MPSC at:

pscinfo@psc.mo.gov