SCS/SB 297 - This act specifies the ratemaking for a small water utility being acquired by a large water utility. Upon acquisition, small water utilities shall become part of a large water utility that is either contiguous, closest geographically, or best suited to acquire the small water utility. The small water utility acquired by a large water public utility shall become party of an existing service area for ratemaking purposes whether or not the procedures for establishing a ratemaking rate base have been utilized. The Public Service Commission shall approve such acquisitions as may be just and reasonable.
This act also removes the public voting procedure for municipal bonds and instead only requires the governing bodies of each contracting municipality to vote for such bonds. This vote must be approved by 3/4 of all governing bodies fo the contracting municipalities.
Currently, only water corporations in St. Louis County may utilize infrastructure system replacement surcharges (ISRS). This act makes all water and sewer corporations eligible provided the corporations produce ISRS revenues of at least one million dollars, or ten thousand dollars for small water and sewer corporations. The following types of projects will qualify for ISRS: energy efficiency projects, water or sewer utility plant projects done as part of a commission order, and replacement of lines and meters as part of a water or sewer utility plant project.