PSC approves environmental surcharge rules
Written on March 1, 2008
The Missouri Public Service Commission voted 4-1 on Thursday to approve rules that may allow electric utilities to impose a customer surcharge to recover environmental expenses, PSC spokesman Kevin Kelly said.
Commissioner Robert Clayton III voted against the rules, saying they fail to balance consumer and utility interests and "may very well lead to inappropriate rate increases."
The rules, which will take effect later this year, are based on 2005 legislation that was pushed by the utilities to help them recoup certain expenses without having to go through a rate case, a thorough, 11-month review of all of the utility’s costs and expenses.
Utilities would need individual approval from the PSC to add a surcharge, which would be a separate line item on bills and could be adjusted from year to year. The amount of the surcharge would be limited to 2.5 percent of a utility’s revenue instant payday loan. AmerenUE’s revenue exceeded $2 billion in 2007.
St. Louis-based Ameren, which has 1.2 million electric customers in Missouri, has said it plans to spend as much as $2.12 billion through 2016 to comply with federal environmental mandates aimed at reducing emissions of pollutants such as sulfur dioxide and mercury.
Consumer advocates fear the rules could open the door for utilities to raise bills and boost profits with less scrutiny of their costs. But backers say the surcharge won’t generate additional revenue and the rules contain adequate consumer protections.
jtomich@post-dispatch.com | 314-340-8320
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