Making various changes to statutes administered by the Public Service Commission and requiring investor-owned energy utilities to fund a consumer advocate. (FE)

The bill requires the PSC to require investor-owned electric and natural gas public utilities (energy utilities) to provide funding to a “consumer advocate,” which is defined as the Citizens Utility Board that was created by the legislature in 1979 and subsequently dissolved and reorganized as a nonstock, nonprofit corporation. All actions of the consumer advocate that are funded under the bill must be directed toward a duty to represent and protect the interests of residential, small commercial, and small industrial energy customers of the state. The bill requires the consumer advocate to annually file with the PSC a budget, which the PSC must approve if it is consistent with the foregoing duty and covers reasonable annual costs, including salaries, benefits, overhead expenses, an operating reserve, and any other costs directly or indirectly related to representing and protecting the interests of the foregoing customers. However, the bill allows the PSC to approve the budget with conditions and modifications that the PSC determines are necessary. If the PSC fails to take final action within 60 days after a budget is filed, the PSC is considered to have approved the budget.

The bill limits the total annual funding for the consumer advocate to a maximum of $900,000. Each energy utility's share of that total is based on an individual energy utility's proportionate share of residential, small commercial, and small industrial customer meters in the state, which each energy utility must annually report to the PSC. The bill requires the PSC to ensure in rate-making orders that energy utilities recover the funding from their customers. The PSC must apply escrow accounting treatment to energy utility expenditures for the funding.

The bill prohibits the consumer advocate from using the funding for lobbying or defraying the cost of participating in proceedings involving the rates or practices of municipal utilities and no other public utilities. The bill also limits the amount that the PSC may compensate the consumer advocate for participating in PSC proceedings. Under current law, if certain requirements are satisfied, the PSC is allowed to compensate participants in proceedings who are not public utilities.

Under this bill, the PSC may grant no more than $100,000 annually in such compensation to the consumer advocate.

Energy-related changes.

The bill does all of the following:

1. Allows an applicant for a PSC-issued certificate that is required for a project involving a high-voltage transmission line to agree with the Department of Natural Resources to extend the deadline for DNR to take action on certain water-related permit applications that are also required for the project. Current law allows a similar agreement for an applicant for a different PSC-issued certificate that is required to construct a high-voltage transmission line.

2. Allows the PSC to approve without a hearing certain public utility fuel cost plans that are contained in settlement agreements.

3. Increases a cost threshold for exempting certain projects of natural gas utilities from the requirement to obtain a PSC-issued certificate. Under current law, the exemption applies if the project's estimated gross cost is not more than a specified dollar amount or 4 percent of the natural gas utility's operating revenues in the prior year, whichever is less. Under current law, the dollar amount is $2,500,000. The bill increases the dollar amount to $5,000,000.

4. Allows a person who proposes to construct a large electric generating facility and an associated high-voltage transmission line to submit a single application that covers the two PSC-issued certificates that are required, instead of submitting one application for the certificate for the facility and a separate application for the certificate for the line as required under current law. If a person submits a single application, the PSC must conduct a single proceeding for issuing the two certificates.

5. Eliminates a requirement for the PSC to prepare an environmental assessment on its biennial strategic energy assessment.

Other changes.

The bill also does the following:

1. Requires the PSC to ensure in rate-making orders that a public utility recovers from its ratepayers reasonable amounts spent on pension and other post-employment benefit costs. Also, if requested by a public utility, the PSC must prescribe escrow accounting treatment for that recovery.

2. Allows the PSC to collect past due assessments that are owed by persons subject to the PSC's jurisdiction. Current law specifies a procedure for collection that involves the Department of Administration. The bill eliminates that procedure and allows the PSC to collect the amount due in accordance with procedures the PSC establishes.

3. Requires public utilities to file annual balance sheets with the PSC by May 1, instead of April 1, as required under current law.

4. Eliminates a requirement for the PSC to promulgate rules establishing privacy guidelines for telecommunications services.

5. Eliminates a requirement for telecommunications providers to address privacy considerations before introducing new telecommunications service.