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-08-73 -- PSC Approves New Rates For Timber Creek Sewer Company On An Interim Basis
Contact: Kevin Kelly (573) 751-9300
FOR IMMEDIATE RELEASE -- OCTOBER 31, 2007
JEFFERSON CITY---The Missouri Public Service Commission has approved an agreement between the PSC staff and the Timber Creek Sewer Company which will increase annual sewer operating revenues by approximately $115,310. The rate increase, which takes effect on November 9, 2007, is interim subject to refund because the issue of connection fees is still before the commission. The commission’s vote was 3-1.
The amount of the connection fee does not affect revenue requirement or rate design. “Thus, it is reasonable to conclude that as of the time of true-up, September 30, 2007, Timber Creek will be earning $115,310 per year less than necessary to meet its revenue requirement. In addition, $115,310 per year for a small company like Timber Creek is a significant amount that if foregone could quickly threaten the company’s financial integrity and even its ability to provide safe and adequate service,” the commission said.
“Suspending the general rate increase while waiting an additional 6-11 months for a decision regarding the connection fee could be detrimental to the company’s operations,” the commission said. The commission determined that the rates would be approved on an interim basis subject to refund pending conclusion of the proceedings addressing the connection fee. “Approving the rates on an interim basis will allow sufficient time to hear the arguments against the connection fee while protecting both the interests of the company and of the ratepayers,” the commission said. The connection fee at issue is a one-time charge applicable to new connections to the company’s systems in Platte County.
On March 22, 2007, Timber Creek filed a rate request with the Missouri Public Service Commission seeking to increase annual sewer operating revenues by approximately $120,000. As a result of the rate request, the Public Service Commission staff (PSC staff) conducted an audit of the books and records of the company. Based upon the audit and true-up, the PSC staff concluded that an increase of approximately $115,310 was warranted. Timber Creek agreed with the PSC staff findings.
The impact on residential sewer customers under the $115,310 interim rate increase appears below:
Service Area: Clay County
Current Rate: $26.97 per month
Interim Rate: $26.97 per month (no change)
Service Area: Platte County
Current Rate: $26.97 per month
Interim Rate: $34.74 per month
Timber Creek serves approximately 1,235 sewer customers in parts of Clay and Platte Counties.
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Case No. SR-2008-0080