Missouri rate reform initiative: a case study
While generic hearings have been an often used means of rate restructuring, rate design objectives can be also achieved through rate cases of the most typical type. Interest in the latter method stems from the belief that its application is less costly in terms of time and manpower. It is the purpose of this report to describe Missouri's incomplete experience with the restructuring of rates through a normal rate case. Activities of the Missouri Public Service Commission (PSC) during and after the 1976 elections have been termed in this report as the Missouri Rate Reform Initiative. The ultimate goal of the rate reform activities in Missouri is to implement electricity tariffs that reflect fully and accurately the incremental cost of providing electric service. According to the rate reform plan, phase I is to be implemented through the rate case of the St. Joseph Light and Power Company. In this phase, energy charges are to be based on the average hourly cost plus an incremental cost of operating and maintaining the system load. These charges, to be included as a single charge per month, are to be made without consideration of economy purchase or other short-term arrangements between systems. A residual charge is to be implemented, the purpose of which is to recover the difference between revenues thus generated and the cost of operating the system. The following implications were noted: the change from traditional regulatory concerns to the application of new regulatory methods requires a unique regulatory environment; the Missouri approach (initiative) to rate reform may be as time-consuming as generic hearings; the Missouri approach requires the development of in-house staff capability beyond that which might be required by other rate reform approaches; and the Missouri approach requires substantial computer resources.
- Research Organization:
- National Regulatory Research Inst., Columbus, OH (USA)
- DOE Contract Number:
- AC01-77RG08683
- OSTI ID:
- 5450241
- Report Number(s):
- DOE/RG/08683-T6; ON: DE84005900
- Resource Relation:
- Other Information: Portions are illegible in microfiche products
- Country of Publication:
- United States
- Language:
- English
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POLICY AND ECONOMY
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RATE STRUCTURE
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DECISION MAKING
ELECTRIC POWER
POLITICAL ASPECTS
REGULATIONS
FEDERAL REGION VII
INSTITUTIONAL FACTORS
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