1993 PSC Annual Report - Missouri Public Service Commission
1993 PSC Annual Report - Missouri Public Service Commission
1993 PSC Annual Report - Missouri Public Service Commission
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to work with <strong>Missouri</strong> electric utilities to aid<br />
compliance with the CAAA in the most efficient<br />
and cost effective manner.<br />
Federal Natural Gas Issues<br />
The <strong>Commission</strong>'s resolve to protect the<br />
interests of <strong>Missouri</strong> natural gas consumers<br />
remained strong in fiscal year <strong>1993</strong> with<br />
extensive involvement in Federal Energy<br />
Regulatory <strong>Commission</strong> (FERC) and related<br />
judicial proceedings. The <strong>Commission</strong> believes<br />
its efforts are necessary to ensure <strong>Missouri</strong><br />
utility consumers receive reliable service at<br />
reasonable rates.<br />
The <strong>Commission</strong>'s participation in rate cases<br />
(primarily those ofMississippi River Transmission<br />
Corporation, Panhandle Eastern Pipe Line<br />
Company, and Williams Natural Gas Company,<br />
the major pipelines serving <strong>Missouri</strong>) focused on<br />
cost ofcapital issues, selected cost of service<br />
iterns, and various tariff provisions. The<br />
<strong>Commission</strong> has previously protested Williams'<br />
recovery of approximately $25 million from<br />
<strong>Missouri</strong> ratepayers in ad valorem tax reimbursements<br />
and is attempting to obtain a<br />
decision in related cases which remain stalled at<br />
theFERC.<br />
The <strong>Commission</strong> continued to monitor federal<br />
initiatives to restructure the natural gas transportation<br />
industry by intervening in and<br />
following the Order No. 636 restructuring<br />
dockets of each pipeline directly serving<br />
<strong>Missouri</strong>. Staff actively participated in the<br />
restructuring cases of Mississippi River,<br />
Panhandle Eastern and Williams. The <strong>Commission</strong><br />
remains concerned with the effect these<br />
changes will have upon the reliability and cost<br />
of providing natural gas service to consumers.<br />
The <strong>1993</strong>-94 winter heating season will be the<br />
ftrst since restructuring in which <strong>Missouri</strong> local<br />
distribution companies (LDCs) will be solely<br />
responsible for procuring adequate gas supplies<br />
to meet anticipated demand.<br />
As the previous year's federal restructuring<br />
Federal Activity<br />
initiatives progress to the implementation phase,<br />
the <strong>Commission</strong> anticipates continued vigilance<br />
will be required in fiscal year 1994. The<br />
<strong>Commission</strong> expects pipelines will seek to pass<br />
through millions of dollars of "transition costs"<br />
to <strong>Missouri</strong> LDCs in the coming year, which<br />
will in tum file to recover such costs in their<br />
retail natural gas rates. The <strong>Commission</strong> will<br />
need to be concerned with whether these costs<br />
were prudently incurred and minimized.<br />
Given the changes occurring at the federal<br />
level, the <strong>Commission</strong> established the Gas<br />
Purchasing/Cost Recovery Project Team. The<br />
project team, made up ofkey staff members, is<br />
charged with identifying the effects of these<br />
changes upon the LDCs' purchased gas cost<br />
recovery mechanisms and other related issues.<br />
The project team has surveyed other states, met<br />
with LDC representatives and expects to release<br />
a draft report to interested parties before the end<br />
of calendar year <strong>1993</strong>. The <strong>Commission</strong> will<br />
also be addressing its responsibilities as required<br />
by the Federal Energy Policy Act of 1992 with<br />
respect to integrated resource planning for<br />
natural gas.<br />
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