2012 PSC Annual Report - Missouri Public Service Commission

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REGULATORY ACTIVITYthe fiscal year and participated in the investigation andresolution of several customer complaints.Staff continues to receive and review quality of servicereports from a variety of companies as a result of mergersand rate cases. These reports contain informationregarding customer service, including data on staffinglevels, call center indicators such as average speed ofanswer and abandoned call rate, and the number ofestimates performed. Staff monitors the call centerperformance of all of the state’s large regulated naturalgas and electric companies as well as Missouri-AmericanWater Company. Staff specifically reviews and analyzes callcenter performance trends, and these reviews often resultin additional inquiries and discussion with the utilitiesregarding performance.Management Analysts also participated in theCommission’s Consumer Services Roundtable meetings thatoccurred throughout the year to contribute toward potentialrevisions to Commission Chapter 13 rules regarding serviceand billing practices for residential customers of gas,electric and water companies.Engineering StaffEMSU engineering staff performed depreciation analysison a number of utility companies during the fiscal year.The purpose of depreciation in a regulatory environment isto recover the original cost and cost of removal less salvageof capital investment from customers and to allocate thosecosts over the useful life of the assets.Annual depreciation expense, distributed over the life ofeach asset, results in the full recovery of the original costplus cost of removal of capital assets.The engineers’ objective is to propose depreciation ratesthat are fair and appropriate for each company as well asits customers. Historical plant additions and retirementsare studied in computer models that assist depreciationengineers in determining an average service life for utilityassets that are classified in a system of plant accounts.Depreciation comprises a significant component of the costused to develop utility rates paid by consumers.These engineers also participate in plant visits to observethe physical assets represented in the individual accountsthat are being depreciated. Commission rules providespecific requirements for utilities to maintain its plantrecords.During 2012, engineering staff provided expert analysesin the context of several large utility rate cases includingthose filed by Ameren Missouri (Case No. ER-22-66,The Empire District Electric Company (Case No. ER-22-345 and Kansas City Power & Light and KCP&L GreaterMissouri Operations Company (Case Nos. ER-22-4and ER-22-5, respectively). Staff also participatedin Missouri- American Water Company’s request for waterand sewer rate increases (Case Nos. WR-2-33 andSR-2-338.Depreciation analysis was also conducted in LibertyUtilities’ request to acquire the Missouri natural gasoperations of the Atmos Energy Corporation (Case No. GM-22-3.EMSU depreciation engineers participated in a requestfiled by Laclede Gas Company for depreciation treatmentof a new computer system (Case No. GO-22-363.Staff also participated in numerous small water and sewercompanies in the context of rate cases. A small companymerger, a company sale, and new certificate casesrequired depreciation review and analysis. EMSU staffalso continues to observe and report on ongoing activitiesat Ameren Missouri’s Taum Sauk Power Plant in easternMissouri.PSC Annual Report 2
YEAR IN REVIEW2011July 3 Public Service Commission (Commission) grants anelectric rate increase of approximately $172 million toAmeren Missouri. When the electric company filed its raterequest on September 3, 2010, it sought to increase annualelectric operating revenues by approximately $263 million.August Commission approves application authorizingAlgonquin Water Resources of Missouri, LLC d/b/a LibertyWater to purchase the water and sewer systems of KMBUtility Corporation.August Commission approves application authorizingAlgonquin Water Resources of Missouri, LLC d/b/aLiberty Water to purchase the water system of Noel WaterCompany, Incorporated.August Commission announces changes to its structureand organization. The PSC now consists of three divisions.Steve Reed heads up the Secretary/General Counsel Office.Wess Henderson is the Director of the Administrationand Regulatory Policy Division and Cherlyn Voss is theDirector of Regulatory Review.August 3 Commission opens case to investigate the costof complying with federal environmental regulations.September 2 Commission observes National TelephoneDiscount Lifeline Awareness Week.September 28 Commission approves agreement whichauthorizes the merger of Southern Missouri Gas Company,L.P. d/b/a Southern Missouri Natural Gas and MissouriGas Utility, Inc.October 2 Commission approves agreement whichauthorizes Veolia Energy Kansas City, Incorporatedto increase annual steam operating revenues byapproximately $1,379,200.October 4 Commission holds its first “Utility Days” inChesterfield. “Utility Days” are designed to provide thepublic with information and education in a “one-stopshop”setting.October 8 Commissioner Terry Jarrett is named chairmanof the National Association of Regulatory UtilityCommissioners’ (NARUC) Committee on CriticalInfrastructure.October 9 Commission opens case to investigate allegedtelephone call routing and call completion problems inMissouri.November Commission Cold Weather Rule takes effect.November Commissioner Robert Kenney is named thenew chair of a national campaign charged with makingthe annual Martin Luther King, Jr., holiday a “Day of UtilityService”. The National Day of Utility Service is organizedby NARUC.December 6 Commission announces the formation of aspeaker’s bureau, another program designed to helpconsumers better understand the role and responsibilitiesof the Commission.December Commission opens case to investigate tariffprovisions governing limitations of liabilities for publicutility operations.2012January 25 Commission establishes working case regardingrenewable energy standards rules.February 3 Ameren Missouri files an electric rate casewith the Commission seeking to increase annual electricoperating revenues by approximately $375.6 million.February 5 Commission Chairman Kevin Gunn is honoredby NARUC, receiving the inaugural Barnich Award,recognizing the ongoing commitment of NARUC membersto furthering regulatory best practices around the world.February 2 Kansas City Power & Light Company files anelectric rate case with the Commission seeking to increaseannual electric operating revenues by approximately$105.7 million.February 2 KCP&L Greater Missouri Operations Companyfiles an electric rate case with the Commission seekingto increase annual electric operating revenues byapproximately $83.5 million.February 29 Commission approves agreement whichauthorizes the merger of Sigma Acquisition Corporation,Southern Union Company d/b/a Missouri Gas Energy andEnergy Transfer Equity, L.P.March Commission approves agreement which authorizesMissouri-American Water Company to increase annualwater operating revenues by approximately $23.2 millionand annual sewer operating revenues by approximately$725,000. When Missouri-American filed its rate requestson June 30, 2011, it sought to increase annual operatingrevenues for water and sewer service by approximately$42.9 million.March 4 Commission approves agreement which authorizesAtmos Energy Corporation to sell its Missouri natural gasand natural gas transportation systems to Liberty Energy(Midstates) Corp.April Commission observes National Safe Digging Month,promoting “Call Before You Dig”.April 5 Commission holds “Utility Days” in Kansas City.“Utility Days” are designed to provide the public withinformation and education in a “one-stop-shop” setting.28 PSC Annual Report
Page 4: TABLE OF CONTENTSBudget ...........
Page 7 and 8: BIOGRAPHIESCommissioner Jarrett is
Page 9 and 10: KEY PSC PERSONNELCommissionersKevin
Page 11 and 12: ORGANIZATIONAL FUNCTIONSAdministrat
Page 13 and 14: REGULATORY ACTIVITY25,00020,00022,M
Page 16 and 17: REGULATORY ACTIVITYalleged deficien
Page 18: REGULATORY ACTIVITYAdditional Notew
Page 21 and 22: REGULATORY ACTIVITYmust rely on FER
Page 23 and 24: REGULATORY ACTIVITYcompanies are co
Page 25 and 26: REGULATORY ACTIVITYprogram. Althoug
Page 27 and 28: REGULATORY ACTIVITYMANUFACTURED HOU
Page 29: REGULATORY ACTIVITYConsumer Service
Page 33 and 34: STATISTICSNATURAL GAS UTILITIES STA
Page 35 and 36: STATISTICSCOMBINATION WATER AND SEW
Page 37: CONTACTING THE PSCMissouri Public S

2012 PSC Annual Report - Missouri Public Service Commission

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