SCS/SB 145 - This act modifies provisions for very small water and sewer corporations, defined as corporations that provide service to 500 or fewer customer connections.
This act prohibits the Public Service Commission from granting a Certificate of Convenience and Necessity (CCN) for the construction of a water or sewer system to any very small water or sewer corporation until such corporation furnishes evidence of operational and financial feasibility, including a feasibility study for construction costs as set forth in this act, and any evidence from the Missouri Department of Natural Resources that it has all necessary permits and licenses to operate such corporation. If the applicant proposes to acquire or construct the water or sewer system through debt financing, and such financing is not provided by an eligible lending institution, the application shall demonstrate that such financing is reasonable.
When issuing a CCN, the Public Service Commission may require that the very small water or sewer corporation submit to rate reviews at least every 5 years. In setting rates for very small water and sewer corporations, the Public Service Commission shall approve only prudently and reasonably incurred costs, with the corporation bearing the burden of establishing prudence in such costs.
Additionally, this act prohibits any entity from acquiring a very small water or sewer corporation without first obtaining approval from the Public Service Commission. In the event that an entity seeks such approval, the Commission shall not approve such acquisition unless it is not detrimental to the public interest, which shall be determined by examining the operational and financial capability of the acquiring entity. Any debt financing for such acquisition shall have reasonable terms and conditions.
This act is identical to a provision contained in SS/SB 184 (2017).