The Missouri Public Service Commission has approved an agreement in a case filed by Missouri American Water seeking an order to govern costs and financial impacts the company has faced associated with the COVID-19 pandemic.
The PSC approved an Accounting Authority Order authorizing the company to deviate from accounting rules it must otherwise follow. The AAO will permit Missouri American Water to defer these costs and carry them as a regulatory asset rather than expensing them in the period in which they were incurred.
The company's ultimate goal is to recover those costs later in rates.
Under the agreement, Missouri American Water agrees not to defer lost revenues from reduced customer usage due to the pandemic.
Missouri American Water will track new or incremental operating and maintenance expenses the company incurred, starting March 1 of this year, to clean and protect equipment. The company will also track late payment fees that were waived up to $785,351 and reconnection charges and disconnection charges waived up to $783,200.
Missouri American Water will make an additional $250,000 contribution to its H2O Help for Others Program prior to the end of the year. According to the company, the H2O Program is designed to help provide assistance to customers who would otherwise have trouble paying their bills. The program is supported by contributions from MAWC as well as voluntary contributions from customers.