Two Mo. state lawmakers called for legislature to oust Mo. PSC Ch...
Two Mo. state lawmakers called for legislature to oust Mo. PSC Chmn. Sheila Lumpe and Comrs. Connie Murray and Dianne Drainer, accusing regulators of incompetence and dereliction of duty for failing to protect utility ratepayers from “devastating” rate increases.…
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Outcry was result of PSC’s 3-2 vote Wed. to approve 44% gas rate increase requested by state’s 2nd largest gas company, Mo. Gas Energy, for 492,000 customers in Kansas City area. State Rep. Dennis Bonner (D-Independence) and state Sen. Ronnie DePasco (D-Kansas City) said they expected PSC also would approve pending 38% gas boost for Laclede Energy, which could go into effect next week for 633,000 customers in St. Louis and southeastern Mo. State law allows legislature to remove PSC members from office on 2/3 vote in each chamber. Commissioners said they had little choice but to approve 44% increase because company had open-and-shut case that soaring wholesale gas prices justified significant retail boost and persuasive evidence supporting claim that it would lose $20 million each month without requested rate increase. PSC “can’t force the companies to sell gas to the consumer at less than they have to pay for the commodity,” and has no jurisdiction over wholesale gas prices, Murray said. Dissenting Comrs. Robert Schemenauer and Kelvin Simmons wanted more investigation of utility’s loss projections and phase-in of any rate increase over several months instead of single big jump. PSC majority also voted to review agency’s processes for handling cost-based energy rate increases because of predictions of even more volatility in wholesale energy markets.