SS/SCS/HB 208 - This act makes various changes regarding the Public Service Commission (PSC).

ALUMINUM SMELTING - This act allows certain aluminum smelting facilities to contract for the purchase of electric power and energy and delivery services and such contract shall not be subject to PSC jurisdiction regarding rates. Such facility shall not resell the electric power and energy to any party except the original provider.

The initial contract must meet certain criteria. No local electric service utility shall have any obligation to supply or deliver backup, peaking for emergency power to the facility. Once the aluminum smelting facility has purchased electric power pursuant to this act, no past supplier shall have any obligation to provide electric power and energy and delivery services except as required by written contract. The provisions of the act are recognized as being highly unique and shall not be interpreted as condoning the suitability of retail electric restructuring.

This portion has an emergency clause. This portion is identical to CCS/HS/HCS/SS/SCS/SB 555 (2003).

PURCHASE OF POWER BY CITIES - The act also expands the ability of cities to procure electric current and ancillary services not only from other cities but from other lawful providers. Such a contract may be for a period and upon such terms as the parties agree and will not require regulatory or public approval beyond the approval of the governing body of the city.

This portion has an emergency clause. This portion is identical to CCS/HS/HCS/SS/SCS/SB 555 (2003).

TECHNICAL ADVISORY STAFF FOR PSC - The act gives the PSC Commissioners authority to have a technical advisory staff. This staff would consist of a pool of up to six full time employees and each Commissioner could hire up to one personal advisor. Before these employees could be hired the Commission would have to correspondingly eliminate comparable positions within Commission staff to accommodate the hiring of the technical advisory staff such that there would be no net gain of employees to the PSC as a whole and at a cost neutral level. Technical advisory staff must be hired by July 1, 2004. The technical advisory staff would render advice and assistance to the Commissioners and provide relevant updates to the Commission. Each of the technical advisory staff would be subject to the same ex parte communication and conflict of interest requirements as the Commissioners. No person could be hired as part of the technical advisory staff within two years of employment with certain divisions of the PSC, corporations regulated by the PSC or the Office of Public Counsel. The technical advisory staff will never be a party to proceedings before the PSC.

These provisions are similar to HS/HCS/SCS/SB 246 (2003).

EX PARTE COMMUNICATIONS WITH PSC - The act also delineates standards for the PSC regarding ex parte communications. Commissioners may confer with members of the public, any public utility or similar commission and the act sets for the procedural guidelines for these communications.

These provisions are similar to HS/HCS/SCS/SB 246 (2003).

TELECOMMUNICATIONS - The act allows telecommunications companies to offer term agreements of up to five years on its telecommunications services. Telecommunications companies are also permitted to offer discounted rates and promotions to new or former customers.

These provisions are similar to SCS/SB 246 (2003).

INFRASTRUCTURE REPLACEMENT SURCHARGES - This act allows water corporations in St. Louis County to file a petition with the Public Service Commission to recover costs associated with certain infrastructure system replacements once per year. This charge is referred to as an infrastructure replacement surcharge (ISRS). For water corporations, the ISRS must produce at least $1,000,000 in revenues but not in excess of 10% of the water corporations's base revenue level. A company seeking approval of an ISRS must have had a general rate proceeding within the last three years to begin or continue collecting the ISRS.

Petition filing requirements for the ISRS are specified in the act as well as factors which may be considered by the PSC in its evaluation of the petition. The corporation is required to reconcile the revenues generated with the underlying costs of the infrastructure replacements. The PSC is given authority to promulgate rules for the implementation of these provisions.

These provisions are contained in SCS/SBs 125 & 290, and CCS/HS/HCS/SS/SCS/SB 361 (2003).

PSC REGULATION OF NOT-FOR-PROFIT ELECTRICAL COOPERATIVES - This act eliminates PSC ratemaking oversight for certain not-for- profit electrical cooperatives whose consumers are its stockholders. The Public Service Commission will still have oversight regarding items affecting the safety and health of employees, services provided outside the boundaries of the cooperatives, changes in suppliers of permanent service, and territorial agreements.

AGGREGATE PURCHASES OF NATURAL GAS BY SCHOOLS - Limits tariffs which may be charged to schools aggregately purchasing gas to the tariff for large industrial or commercial basic transportation customers.

STEAM HEATING COMPANIES - Allows a steam heating company with fewer than 100 customers to file under the small company rate procedure established by the PSC.
CINDY KADLEC