February 12, 2012

Cold Weather Rule takes effect this weekend

Missouri’s Cold Weather Rule goes into effect Sunday, November 1st, prohibiting the disconnection of service when the temperature is forecasted to drop below 32 degrees for the following 24 hour period.

“The Cold Weather Rule is in place to help low income customers when the weather gets extremely cold,” said Missouri Public Service Commission Chairman Robert Clayton in an interview with the Missourinet. “We try to have an orderly system set up to address times when perhaps low income customers cannot afford to pay their bill but it’s also very cold outside, so November 1st is when the Cold Weather Rule becomes in effect.”

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Lawmakers hear bleak testimony on Missouri’s energy future

A legislative committee considering Missouri’s energy future has heard some pretty bleak testimony.

Public Service Commission Chairman Robert Clayton III tells committee members they have drawn a tough assignment. [Read more...]

Forum debates future of Missouri energy costs

It has proven difficult to assess what price Missourians will have to pay to cool their homes in the summer and heat them in the winter, but the Public Service Commission is giving it a try.

A second State of the Electric Industry symposium has been held by the Public Service Commission at the Governor Office Building in Jefferson City. PSC Chairman Robert Clayton understands debate on cap and trade legislation in Washington can be heated here in Missouri, but he advocates a practical response to whatever might be coming the state’s way.

"This is not a debate about, necessarily, climate or the environment. If something happens in Washington, regardless of what the bill is, we need to be prepared to act," Clayton says. "And we need to be prepared to improve what policies we have. We need to be prepared to inform consumers. So, I think the dialogue is important."

Missouri is a low-cost energy state. Yet, legislation in Washington as well as voter-approved Proposition C last year appears to be moving Missouri away from coal, the source of its cheap energy. Cap and trade would penalize coal-fired plants, which produce more than 80% of the electricity Missourians use. The legislation provides for offsets and other incentives to lessen the cost of moving away from traditional power generation. Proposition C requires Missouri utilities to produce 2% of their energy through alternatives fuels by 2011 and 15% by 2021.

PSC Commissioner Jeff Davis understands the environmental concerns.

"We need to lessen our dependence on coal, but we need to do it in a measured way that doesn’t wreck our economy," Davis says. "We need to preserve what manufacturing jobs we have left, because we’re not going to get any more."

Despite assurances of offsets in the cap and trade legislation, as well as other mitigating factors, both Davis and Clayton anticipate higher electric bills in the years ahead, perhaps much higher.

Download/listen Brent Martin reports (:60 MP3)

PSC auditors to determine whether Ameren rate hike request warranted

AmerenUE’s request for an 18 percent rate increase set the wheels in motion for Public Service Commission approval or rejection of that request. And, it’s going to be some time before commissioners sit down to discuss the merits of what Ameren wants.

Public Service Commission Chairman Robert Clayton says the PSC will respond to Ameren’s filing by sending auditors and other staff members to Ameren’s offices in St. Louis to begin studying the company’s books to determine whether an increase is warranted.

"We have to look at the evidence," said Clayton in an interview with the Missourinet. "And, keep in mind that we don’t look at the actual percentage increase – that’s not really a factor that we consider. What we look into, as the staff audits the books of the utility, is whether all the expenditures that they have asked for inclusion in rates – make sure that all of those expenditures are prudent expenditures, that they were reasonable under the circumstances. Only after that will the staff and the Commission recommend increasing rates based on those."

There is a whole array of proofs that must be presented to PSC auditors.

"They have to prove their investments," said Clayton. "They have to prove their fuel costs. They have to prove their labor costs. Anything that they say has gone up to suggest a higher utility rate they have to prove. And our staff will conduct a thorough audit to make sure those investments have actually been made."

The staff is expected to complete its investigation and report back to commissioners in about three or four months, with a recommendation regarding Ameren’s rate hike request. Ameren and the PSC would then haggle over the amount of the increase – provided one is to be granted. Clayton says an evidentiary hearing by PSC commissioners will take place in about eight months.

Download/Listen: Steve Walsh report (:60 MP3)

Utility officials discuss cap-and-trade study, express concerns over possible rate hikes

Missouri’s utility officials are watching the federal climate-change legislation. The Waxman-Markey bill is could be taken up by Congress this week … key legislators are still working with agriculture officials on controversial measures in the bill the ag industry says would unfairly penalize rural areas.

The study, by the Missouri Public Utility Alliance, says cap-and-trade for carbon emissions could increase the electric rate in Missouri by 10 percent in 2015 … and raise it by as much as 80 percent in 20 years.

Robert Clayton, chairman of the Public Service Commission, says Missouri would be one of the states harder hit by the legislation, since a lot of our state’s energy comes from coal. However, Clayton says legislators continue to rework the language of the bill, and a lot depends on the final version of the bill.

And, he says, the PSC wants to be proactive rather than reactive in lowering carbon emissions. Clayton says the federal stimulus funding has provided numerous grants and programs, such as for weatherization in low-income homes, and he says Missourians need to take advantage of what’s are available. The PSC is working with the Department of Natural Resources on some of those programs, he says.

“That’s the message we’re trying to get out to consumers,” he says. “You need to take advantage of programs out there to take control of your energy and cut down on how much energy you use because ultimately that will help you save money.”

Energy program information is on the commission’s Web site at psc.mo.gov.

And he says the PSC wants to be a resource for legislators looking at the bill, and provide useful analysis and research.

Missouri should continue to look at nuclear power.

Legislators are still working with the Agriculture industry, which says rural areas would be hardest hit by the increases. Clayton says a lot depends on the final language of the bill, which could be taken up by the end of this week.

Missouri should continue to look at nuclear energy, he says, despite the failure of a bill this session that would let Ameren UE charge rate payers while the plant is under construction.

“Nuclear is expensive to build but then is efficient and may be an appropriate source to look at in future cap-and-trade rules,” he tells the Missourinet.

Echoing the main concern of this week’s forum looking at the study, Clayton says, “Any legislation that restricts carbon emissions is going to affect a state that relies on coal energy. We’ve benefitted from the low cost over the years and I hope our congressional legislation is mindful of actions they can include,” such as rebates for residential or commercial interests that would be majorly impacted. “I think they have that in mind.”