SS/SB 705 - This act modifies provisions relating to rate adjustments outside of general rate proceedings for certain public utilities.
RATE ADJUSTMENTS OUTSIDE OF GENERAL RATE PROCEEDINGS (Section 386.266) - This act allows water corporations with more than 8,000 customers to make an application to the Public Service Commission to approve rate schedules outside of a general rate proceeding to ensure that revenues billed for services equal the revenue requirement for such services due to changes in customer usage.
This provision is substantially similar to a provision contained in SCS/HB 2216 (2018).
COMPETITIVE BIDDING (Section 393.358) - This act requires water corporations with more than 1,000 customers to develop a qualification process for contractors seeking to provide construction services for planned infrastructure projects on the water corporation's distribution system. The water corporation shall specify qualification requirements and goals for contractors seeking to perform such work. Contractors that meet the eligibility requirements shall be able to participate in the competitive bidding process, and the contractor making the lowest and best bid shall be awarded such contract. For contractors not qualifying through the competitive bid process, the water corporation shall provide, if requested, information as to how to be better positioned to qualify for such bid opportunities in the future. Nothing in this act shall be construed to require any water corporation to use third parties instead of its own employees for such work, in the case of an emergency project, or to terminate any contract.
Within 30 days of the effective date of this act, the water corporation shall file a statement with the Public Service Commission stating that it has established a qualification process, and that such process is used for no less than 10% of such planned infrastructure projects.
Further, this act requires the Public Service Commission, by December 31, 2020, to submit a report to the General Assembly on the effects of this section.
This act is substantially similar to the perfected HCS/HB 1999 (2018).