November, 2001, raised
the specter of a large number of Missouri gas customers going without heat
during the winter. Several utilities have large bad debt accounts
resulting from last winter's high gas prices. Reacting to this concern, as
well as the threat of additional disconnections, the Missouri PSC issued an
Emergency Cold Weather Rule amendment, reducing the amount that customers would
be required to pay to be reconnected and limiting in certain other manners some
of the disconnection activities of the gas utilities. The gas utilities
were permitted to apply for an Accounting Authority Order (AAO) which would
allow them to accrue incremental expenses associated with compliance with the
amended rule.
Two gas utilities, Missouri Gas Energy and Atmos Energy (which operates Greeley
and United Cities gas companies) obtained a stay order from the Cole County
Circuit Court. The Commission then applied for mandamus to the Court of
Appeals but the application was rejected by the Court last week (12/4/01).
Briefs by both groups have been filed in the Cole County Circuit Court and a
hearing is to be held on 12/20/01. At that time the Court may consider
whether the stay order should be continued or dissolved.
The issue is of concern and controversy because it questions the power of the
Commission to regulate the utilities. Larger gas users have concerns that costs
that they did not cause may be shifted to them. Continue to monitor this
situation.
1209 Penntower Office
Center
3100 Broadway
Kansas City, Missouri 64111
(816) 753-1122
Fax (816) 756-0373
428
East Capitol
Suite 300
Jefferson City, Missouri 65101
(573) 635-2700
Fax (573) 635-6998
