SB 390 Creates the "Electrical Corporation Responsibility Act"
Sponsor: Koster Co-Sponsor(s)
LR Number: 1883S.01I Fiscal Note: 1883-01
Committee: Commerce, Energy and the Environment
Last Action: 4/5/2007 - SCS Voted Do Pass S Commerce, Energy and the Environment Committee (1883S.02C) Journal Page:
Title: Calendar Position:
Effective Date: August 28, 2007

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Current Bill Summary


SB 390 - This act requires electric companies to provide a specified credit to the account of any customer who loses electricity for more than four hours in a monthly billing cycle. Lost revenue due to these credits may not be used to determine general rates for electric service.

Electric companies shall annually report their System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI) for the preceding year. The Public Service Commission (PSC) shall post the reported SAIDI and SAIFI for each company on its website in rank order by performance.

Residential customers whose power outages exceed 500% of its electric company's SAIDI or SAIFI are entitled to a credit as specified in the act.

The PSC shall post on its website, in rank order by performance, the number of service quality-related complaints per electric company for the preceding 3, 12, and 24-month periods, with certain exclusions.

The PSC shall prominently display on its main website the name of any electric company who meets the criteria of a "substandard service provider" as defined in the act. Additionally, the substandard service provider shall post a specified notice indicating its status on its customer's monthly bills until it no longer meets the criteria of a substandard service provider.

Upon an electric company meeting the criteria for a substandard service provider, the PSC shall cause its current authorized rate of return to be reduced by one hundred basis points, which shall be reflected in the general rate charged to customers. The reduced general rate shall be in effect until the company no longer is considered a substandard service provider, but for no less than 12 months.

The PSC shall establish generally applicable vegetation management standards for electric companies and shall assess penalties for non-compliance.

The amount of any penalties assessed on either a substandard service provider or for non-compliance with vegetation management standards shall not be included when determining a general rate for electric service.

ERIKA JAQUES