HB 882 -- RETAIL ENERGY CUSTOMER AND WORKER PROTECTION

CO-SPONSORS:  Schilling, McLuckie

COMMITTEE ACTION:  Voted "do pass" by the Committee on Consumer
Protection and Housing by a vote of 13 to 4.

This bill creates the Missouri Energy Reliability Board to
standardize the reliability, safety, and customer services
practices of investor- and consumer-owned electric or gas
companies.  In addition to its rulemaking authority, the board
is required to institute procedures to prevent overloads on
systems and cost-shifting among regulated and competitive
segments of the utilities.  The board must report to the General
Assembly every 2 years on the adequacy and reliability of the
electric supply.

The bill also requires the board to establish minimum
maintenance standards for electric or gas companies providing
service within the state and requires the companies to file an
annual preventive maintenance plan with the board, including an
inspection schedule and certain record maintenance.  If a
facility receives an unfavorable rating, the company will
present its plan for corrective action for approval by the board.

The board will establish minimal performance standards for all
electric or gas companies providing service within the state,
including bonding of contractors and vendors, occupational
safety and health standards, and reporting procedures for
certain injuries, fatalities, or property damage of at least
$20,000.

The bill also requires the board to establish reliability and
maintenance service standards for worker safety, including
requirements to demonstrate necessary skills to perform critical
functions.  The board will also establish minimum customer
service standards for all electric or gas companies providing
service in the state, including sufficient personnel to meet
customer needs, accurate billing information, and certain
information disclosures to retail customers upon request.

Any electric or gas company undertaking significant downsizing,
merger, or other similar transaction is required to prepare a
worker transition plan within 180 days of the final date of the
transaction.  The company must confer with affected employees
prior to filing the final plan, and file notice with the board
of any action that will result in layoffs.  The plan must
include such benefits to workers as voluntary severance,
retraining, and outplacement services.  The bill also requires
the succeeding entity to recognize and work with the union
representing the employees after the merger or other transaction.

This bill has an emergency clause.

FISCAL NOTE:  Estimated Net Effect on Public Service Commission
Fund of $0 in FY 2000, FY 2001, and FY 2002.

PROPONENTS:  Supporters say that they have concerns that looming
competition in the electric industry could result in fewer
employees and therefore, unreliable service.  They also stress
that safety and training are essential, and that conflicts with
the primary purpose of competitive businesses which is to make
money.

Testifying for the bill were Representative Schilling; Missouri
International Brotherhood of Electrical Workers; Oil, Chemical,
and Atomic Workers International Local 5-6; Missouri AFL-CIO;
and Local 53 International Brotherhood of Electrical Workers
Kansas City.

OPPONENTS:  Those who oppose the bill say that the bill would
apply to aspects of the electric and gas industry that would
remain regulated.  The bill mandates staffing levels, and
companies cannot always staff for "peaks" rather than "valleys."

Testifying against the bill were Utilicorp United; AmerenUE;
Kansas City Light & Power; Laclede Gas; St. Joseph Light &
Power; and Associated Industries.

Donna Schlosser, Legislative Analyst

HB 882 -- Retail Energy Customer and Worker Protection

Co-Sponsors:  Schilling, McLuckie

This bill creates the Missouri Energy Reliability Board to
standardize the reliability, safety, and customer services
practices of investor- and consumer-owned electric or gas
companies.  In addition to its rulemaking authority, the board
is required to institute procedures to prevent overloads on
systems and cost-shifting among regulated and competitive
segments of the utilities.  The board must report to the General
Assembly every 2 years on the adequacy and reliability of the
electric supply.

The bill also requires the board to establish minimum
maintenance standards for electric or gas companies providing
service within the state and requires the companies to file an
annual preventive maintenance plan with the board, including an
inspection schedule and certain record maintenance.  If a
facility receives an unfavorable rating, the company will
present its plan for corrective action for approval by the board.

The board will establish minimal performance standards for all
electric or gas companies providing service within the state,
including bonding of contractors and vendors, occupational
safety and health standards, and reporting procedures for
certain injuries, fatalities, or property damage of at least
$20,000.

The bill also requires the board to establish reliability and
maintenance service standards for worker safety, including
requirements to demonstrate necessary skills to perform critical
functions.  The board will also establish minimum customer
service standards for all electric or gas companies providing
service in the state, including sufficient personnel to meet
customer needs, accurate billing information, and certain
information disclosures to retail customers upon request.

Any electric or gas company undertaking significant downsizing,
merger, or other similar transaction is required to prepare a
worker transition plan within 180 days of the final date of the
transaction.  The company must confer with affected employees
prior to filing the final plan, and file notice with the board
of any action that will result in layoffs.  The plan must
include such benefits to workers as voluntary severance,
retraining, and outplacement services.  The bill also requires
the succeeding entity to recognize and work with the union
representing the employees after the merger or other transaction.

This bill has an emergency clause.