The Missouri Public Service Commission regulates investor-owned electric, steam, natural gas, water and sewer and telephone companies. Its mission is to ensure Missouri consumers have access to safe, reliable and reasonably priced utility service while allowing those utility companies under our jurisdiction an opportunity to earn a reasonable return on their investment. The PSC also regulates manufacturers and retail dealers who sell new and used manufactured homes and modular units. The commission was established in 1913. The PSC is comprised of five commissioners, who are appointed by the governor.
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PR-08-31 -- PSC Staff To Seek Penalties Against Suburban Water and Sewer Company
Contact: Kevin Kelly, (573) 751-9300
FOR IMMEDIATE RELEASE -- AUGUST 29, 2007
JEFFERSON CITY—The Missouri Public Service Commission has directed its General Counsel to seek penalties in circuit court against Suburban Water & Sewer Company (Suburban) for failing to comply with the terms of an agreement reached by the parties in a 2005 rate case. The parties to the agreement were the PSC Staff, the Office of the Public Counsel and the water company.
Suburban Water and Sewer Company serves approximately 150 water customers in the Bon-Gor Estates Subdivision near Columbia, Missouri.
The Commission has also given the PSC Staff the authority to seek an order in circuit court requiring Suburban to make the agreed to repairs and improvements to its water system.
“The Commission will authorize its Staff to proceed to circuit court to seek monetary penalties and mandamus or injunction against Suburban because there does not seem to be any other means available to try to force that company to properly maintain its system and offer safe and adequate service to its customers,” the Commission said.
The Commission took these actions because of Suburban’s failure to:
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Install meters for all buildings no later than August 31, 2005.
“The installation of meters for all customers is vitally important because without customer meters, Suburban has no means to determine how much water is flowing to its customers, and how much is being lost to leaks on the system,” said the Commission.
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Implement a ten-year replacement program for existing meters.
Commission rules regarding the testing and replacement of customer meters require that a meter either be replaced or tested every ten years.
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Install flush valves with the flushing capability of at least 3 feet per second in all mains.
A Department of Natural Resources engineer testified that flush valves are necessary to allow a water company to remove contamination from the system. Testimony indicated that Suburban has only one flush valve on its system and that is not enough to properly flush its system.
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Replace the standpipe with an inlet high enough to provide adequate circulation and detention time.
“The fact that the repairs will be expensive does not excuse non-compliance with a requirement that is essential to the provision of safe and adequate service to Suburban’s customers,” the Commission said.
The circuit court will determine whether penalties are assessed, and if assessed, the amount of those penalties. Any penalties are required by law to be paid to the state public school fund.
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Case No. WC-2008-0030