Missouri Public Service Commission Meets to Discuss Tariff

7 years 2 months 3 days ago Wednesday, May 18 2011 May 18, 2011 Wednesday, May 18, 2011 4:26:00 PM CDT May 18, 2011 in News
By: Tom Martin

JEFFERSON CITY - The Missouri Public Service Commission met Wednesday with representatives of the Midwest ISO to discuss the terms of a proposed tariff that could impact future electric rates for Missouri consumers.

The Midwest ISO asserts that the tariff will aid in meeting future energy costs for the region. Specifically, the tariff would address issues such as the effects of congestion on the electric transmission grid, capacity requirements and reliability issues.

The question on the table for these representatives and commissioners lies in whether the tariff is wholly necessary. Missouri Public Service Commissioner Jeff Davis asserted that this was indeed the focus of the meeting.

"That's the ultimate question: is the tax necessary?" he said. "We have a voluntary compacity market right now and prices are really low, and I think that's why we need to ask some tough quesitons of both the Midwest ISO as well as the Federal Energy Regulatory Commission. Why do they need it?"

Davis ultimately said that a tax may be needed in order to address costs later in the future.

"Missouri has the best integrated resource planning rules on the books, in my opinion, and we have low rates and the capacity charges are really low. I'm concerned that five to ten years down the road this could reach an outcome for Missouri rate payers that is not in their best interest."

If both sides agree to the terms of the tariff, the Federal Energy Regulatory Commission will hear the proposal and choose to either approve or disapprove of the tariff.

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