Your Opinion: Proposal would restrict PSC oversight

Dear Editor:

There are a lot of talking points being thrown around about SB1028, the utility industry’s most recent attempt to freeze customers out of the rate-making process.

SB1028 is not about transparency, nor is it about modernization. Instead, it is about maximizing profits for utilities that are already making a substantial amount of money, year after year.

A recent study showed that power rates for residential consumers could rise by between 62 percent and 71 percent over the next 10 years if SB1028 is adopted. For large users of electricity, the increase could be anywhere between 56 percent and 100 percent.

Why such massive increases in electric rates under SB1028? This bill would hobble the Public Service Commission’s ability to serve as an advocate for ratepayers, entitling utilities to an annual, no-questions-asked increase in rates and guaranteeing a minimum level of profit for the company, all while offering little opportunity for the PSC to question costs or encourage utilities to take a more fiscally responsible approach.

Utilities are very different from other businesses. They operate as government-sanctioned monopolies and have a guaranteed customer base. If you don’t like your power company, you can’t very well take your business elsewhere, short of moving out of their service area. That is why having a strong Public Service Commission is of the utmost importance.

Missouri is home to some of the lowest electric rates in the nation, yet our utilities are also among the highest-rated for reliability. This is a testament to the efficacy of the Public Service Commission, and it would be a mistake to throw this away by adopting SB1028.