HB 1038 Regulates gas/electric utilities and entities that sell related equipment in affiliation with utility
Bill Summary
- Prepared by Senate Research -

SCS/HCS/HB 1038 - This act regulates utility merchandising practices. The act affects electric, gas, heating, sewer and water companies regulated by the Missouri Public Service Commission. The act affects the ability of those entities to engage in, or assist any entity in engaging in the sale, lease, rental, installation, construction, modernization, retrofit, maintenance or repair of heating, ventilating and air conditioning equipment and services.

The act contains the following provisions affecting utility merchandising practices:

1) A utility may not engage in, or assist any entity in engaging in the affected practices in a manner which creates an unfair economic advantage, as determined by the commission, for that utility or other entity.

2) A utility may not use or allow any entity to use the name of such utility in the affected practices unless the services provided are provided directly by employees of the utility.

3) A utility which engages in affected practices shall provide notice, pursuant to rule, that such service is not regulated by the commission with regard to reasonableness of rates, including disclosure in person, in any promotional materials and other advertising.

4) A utility which engages in affected practices and provides services using utility contractors shall allow all utility contractors who meet minimum national utility contractor standards recognized by the commission the opportunity to participate.

5) A utility which uses any customer information, billing process or other customer access to engage in affected practices shall make such information or customer access available, upon written request, to any other entity engaging in the affected practices in the same manner, under the same terms and conditions and at the same cost imputed to itself or any entity assisted by the utility, according to a process established by the commission by rule.

6) A utility may not engage in, or assist any entity in engaging in the affected practices in a manner which subsidizes the activities of such entity to the extent of increasing the rates or charges for the utility's services above the rates or charges that would be in effect if the utility were not engaged in or assisting any entity in engaging in such activities.

7) A utility that violates any provision of this section is guilty of a civil offense and may be subject to a civil penalty of up to twenty-five thousand dollars for each violation.

The Commission shall administer the act and have jurisdiction to ensure compliance. The Public Service Commission shall inspect accounts, records, operations, and contracts of utilities and affiliates to ensure compliance with the provisions of this act.

The Commission shall adopt rules, pursuant to Chapter 536, RSMo, to implement the act. The Commission may not impose utility merchandising requirements regarding the practices affected by this act that are inconsistent with those set forth in this act.

This act contains penalty provisions.
OTTO FAJEN

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