MISSOURI PUBLIC SERVICE COMMISSIONpsc.mo.gov/CMSInternetData/Annual Reports/PSC Annu… · ·...

MISSOURIPUBLICSERVICECOMMISSION

Informed Consumers, Quality Utility Services,and a Dedicated Organization

for Missourians in the 21st Century

2002 ANNUAL REPORT

From left to right, Commissioner Bryan Forbis, Commissioner ConnieMurray, Chairman Kelvin Simmons, Commissioner Sheila Lumpe, andCommissioner Steve Gaw.

PUBLIC SERVICE COMMISSION

2

MISSOURI PUBLIC SERVICE COMMISSION

KELVIN SIMMONS, CHAIRMAN

CONNIE MURRAY, COMMISSIONER

SHEILA LUMPE, COMMISSIONER

STEVE GAW, COMMISSIONER

BRYAN FORBIS, COMMISSIONER

ANNUAL REPORT 2002

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Missouri Public Service Commission offices are located in the GovernorOffice Building, 200 Madison Street, in Jefferson City.


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TABLE OF CONTENTS

Key Personnel........................................6Commission Biographies........................7Budget..................................................10Organizational Functions.......................11Mission.................................................13Practice Before the Commission.............17Utility Issues............................................19Service Quality......................................40Organizational Chart.............................42Year in Review.......................................43Statistical Information...........................46Contact Information.............................53Commissioners:Past & Present..............54

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ANNUAL REPORT 2002

Kelvin Simmons, Chairman 751-0946Connie Murray, Commissioner 751-4132Sheila Lumpe, Commissioner 751-4221Steve Gaw, Commissioner 751-3243Bryan Forbis, Commissioner 751-3233Robert Quinn, Executive Director 751-2690Toni Messina, Legislative Coordinator 751-5472Kevin Kelly, Public Information Administrator 751-9300Gregg Ochoa, Public Information Coordinator 522-2760

Administration DivisionDonna M. Prenger, Director 751-7492Rhonda Byers, Manager - Human Resources Department 751-7508Todd Craig, Manager - Computer Information Services Department 526-8153Dan Redel, Manager - Internal Accounting Department 751-2457Janet Hoerschgen, Manager - Consumer Services Department 751-3160Gay Smith, Project Manager - Electronic Filing & Information System 751-5526

Adjudication DivisionDale Hardy Roberts, Secretary/Chief Regulatory Law Judge 751-4256

General CounselDana K. Joyce, General Counsel 751-8705

Utility Operations DivisionWess Henderson, Director 751-7435Dale Johansen, Manager - Water and Sewer Department 751-7074John Van Eschen, Manager - Telecommunications Department 751-5525Warren Wood, Manager - Energy Department 751-2978Ron Pleus, Manager-Manufactured Housing Department 751-7119

Utility Services DivisionRobert Schallenberg, Director 751-7162Ron Bible, Manager - Financial Analysis Department 751-8517Joan Wandel, Manager - Accounting Department 751-4785David Sommerer, Manager - Procurement Analysis Department 751-4356Lisa Kremer, Manager - Management Services Department 751-7441

Key PSC Personnel

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PSC COMMISSIONERS

KELVIN L. SIMMONSChairman Governor Mel Carnahan appointed Commissioner Kelvin L.Simmons to the PSC on May 5, 2000. In July 2001, GovernorBob Holden named Simmons Chairman of the PSC. Prior to his appointment to the PSC, Simmons was a mem-ber of the Kansas City Council. He represented more than72,000 constituents in Kansas City’s 5th Council District. Chairman Simmons also worked as a senior staff member tothe late Governor Mel Carnahan, serving as the Director forConstituent Services from 1993 until 1996. In addition, Chair-man Simmons was the State Director for Equal EmploymentOpportunity in the Office of Administration. In addition to his Commission duties, Chairman Simmonsserves on the Missouri Universal Service Board and is a mem-ber of the National Association of Regulatory Utility Commis-sioners (NARUC) where he currently serves on the ElectricityCommittee. Simmons also serves on the NARUC Committee for International Relations. ChairmanSimmons currently serves as Co-Chairman of the Utilities Commission of the Homeland Security TaskForce. He is also a member of the Governor’s Security Council. Mr. Simmons has twobaccalaureate degrees inCommunications andInterdisciplinary Studiesfrom University of Mis-souri-Columbia obtainedin 1986 and an ExecutiveMasters in BusinessAdministration from theUniversity of Missouri-Kansas City in 1999.Commissioner Simmonshas also studied andengaged in missions ofunderstanding internation-ally in Sweden, Finland,South Africa, Cuba, HongKong and Beijing, China. Mr. Simmons’ termexpires on April 15, 2005.

Chairman Simmons listens to discussion during an agenda meeting.

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ANNUAL REPORT 2002

CONNIE MURRACONNIE MURRACONNIE MURRACONNIE MURRACONNIE MURRAYYYYYCommissioner Commissioner Connie Murray was appointed to a six-year term tothe PSC by Governor Mel Carnahan in May, 1997. Commissioner Murray served as Representative of the 135thlegislative district in the Missouri House of Representatives from1991 through 1996. She was appointed House Manager of Articles ofImpeachment of Missouri Secretary of State before the MissouriSupreme Court in 1994. She served on several committees, includingBudget and Judiciary & Ethics. She was treasurer of Women Legisla-tors of Missouri and a member of various national legislative organi-zations. Since her appointment to the PSC, Commissioner Murray hasparticipated in a number of state and national utility regulatoryorganizations. She is a member of the NARUC Committee on Water and has served on a working groupof the National Drinking Water Advisory Council. She has also participated in various PSC Roundtables.She serves on the Advisory Council for the Center for Public Utilities, New Mexico State University. Commissioner Murray earned her bachelor of arts degree in English literature from Loyola College inBaltimore, Maryland, where she graduated cum laude in 1975, and a juris doctorate in 1980 from theUniversity of Maryland School of Law where she was Notes and Comments Editor of the Law Review. Commissioner Murray’s term expires in May of 2003.

SHEILA LUMPESHEILA LUMPESHEILA LUMPESHEILA LUMPESHEILA LUMPECommissioner Sheila Lumpe was appointed to the PSC on June 5, 1997, byGovernor Mel Carnahan. In August of 1997, she was named Chair ofthe Commission and served in that capacity until July 2001. Prior to her appointment, Lumpe was chair of the House BudgetCommittee of the Missouri House of Representatives. A nine termstate representative, Ms. Lumpe represented St. Louis County in theMissouri House since first elected in 1980. In addition to chair of theHouse Budget Committee, Ms. Lumpe also served on a number ofLegislative committees including the Utilities Regulation Committee.Prior to the Legislature, Commissioner Lumpe served eight years onthe University City School Board. Lumpe is Vice Chair of the Water Policy Roundtable of the PSC.She also serves on the Board of the Missouri Humanities Council, theGas Committee of NARUC, and on the Advisory Board of thePublic Utility Division/Financial Research Institute, University ofMissouri. Lumpe graduated summa cum laude with a baccalaureate degree in government from Indiana Univer-sity in 1957 and received a master’s degree in political science from the University of Missouri-St. Louisin 1989. Commissioner Lumpe’s term expires on April 15, 2003.


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BRBRBRBRBRYYYYYAN FORBISAN FORBISAN FORBISAN FORBISAN FORBISCommissioner Bryan Forbis was appointed to the PSC on November 1, 2001 byGovernor Bob Holden. Prior to his appointment, Forbis served as deputy director forInstitutional Services in the Missouri Division of Aging (now asection in the Missouri Department of Health and Senior Services).In that position, he supervised over 300 employees responsible formonitoring and enforcing state and federal regulations in 1,250nursing and residential care facilities. From 1995 until 1999, Mr.Forbis was special assistant to the director in the Missouri Division ofAging/Department of Social Services. He is a 20-year veteran ofstate government, having also served in the Department of NaturalResources and the Division of Child Support Enforcement. Mr. Forbis graduated in 1979 from the University of Missouri-Columbia (UMC) with bachelor degrees in political science andinterdisciplinary honors. In 1981, he received a master’s in political science (public policy) from UMC. In addition to his Commission duties, Mr. Forbis is Secretary of the Missouri Universal Service Boardand is a member of the National Association of Regulatory Utility Commissioners (NARUC) where heserves on the Committee on Telecommunications. Commissioner Forbis’ term expires on April 15, 2007.

STEVE GASTEVE GASTEVE GASTEVE GASTEVE GAWWWWWCommissioner Commissioner Steve Gaw was appointed to the Missouri PublicService Commission in March 2001, by Governor Bob Holden. Fol-lowing Senate confirmation, Gaw began serving on the Commission onApril 2, 2001. Prior to his appointment, Commissioner Gaw was Speaker of theMissouri House and served as a State Representative of the 22nd Districtrepresenting Randolph County as well as parts of the Missouri countiesof Howard, Chariton and Boone. Gaw was first elected to the MissouriHouse in 1992, became Speaker in 1996 and served until January 2001. While House Speaker, Gaw was instrumental in bringing new tech-nology to the chamber, as the Missouri House became the first statelegislative body to broadcast their proceedings live over the Internet. As a legislator and as Speaker, Gaw was a leader on education issues requiring greater accountabil-ity in schools and more emphasis on the basics, particularly reading, in the early grades. His work oneducation earned him several awards including the prestigious Geyer Award, the Horace Mann Friendof Education for Legislation Award and the Distinguished Legislator Award from the Missouri Commu-nity College Association. Commissioner Gaw graduated summa cum laude in 1978 from Truman State University with abachelor’s degree in physics. He earned a law degree from the University of Missouri-Columbia in1981. Gaw served as Moberly city prosecutor and practiced law in Moberly with the firm of Schirmer,Suter, & Gaw. Commissioner Gaw’s term expires on January 4, 2007.

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ANNUAL REPORT 2002

BBBBBUDGETUDGETUDGETUDGETUDGET

Public Service CommissionPublic Service CommissionPublic Service CommissionPublic Service CommissionPublic Service Commission

Fiscal Fiscal Fiscal Fiscal Fiscal YYYYYearearearearear 2003 2003 2003 2003 2003

Personal ServiceExpense and EquipmentProgram Specific Distribution (PSD) Total

Full-Time Employees (F.T.E.)

Deaf Relay Service andDeaf Relay Service andDeaf Relay Service andDeaf Relay Service andDeaf Relay Service and

Equipment Distribution PrEquipment Distribution PrEquipment Distribution PrEquipment Distribution PrEquipment Distribution Programogramogramogramogram

F.T.E.

ManufacturManufacturManufacturManufacturManufactured Housing Dept.ed Housing Dept.ed Housing Dept.ed Housing Dept.ed Housing Dept.

F.T.E.

TTTTTOTOTOTOTOTALALALALAL BUDGET BUDGET BUDGET BUDGET BUDGET

FFFFF.T.T.T.T.T.E..E..E..E..E.

$ 9,417,895 3,738,714

10,000

$ 13,166,609

209

$ 5,000,000

0

Personal ServiceExpense and EquipmentPSD Total

Budget includes program specific distributions.* estimated appropriation

$ 336,548 173,558

17,935

$ 528,041

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*

$ 18,694,650$ 18,694,650$ 18,694,650$ 18,694,650$ 18,694,650

220220220220220

*


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Organizational FunctionsOrganizational FunctionsOrganizational FunctionsOrganizational FunctionsOrganizational Functions

Executive DirExecutive DirExecutive DirExecutive DirExecutive DirectorectorectorectorectorRobert Quinn, Executive Director

The Executive Director is the PSC’s chief operations officer. The Executive Direc-tor is responsible for the overall administrative functions and the policy direction of theStaff. The Executive Director also serves as the primary liaison between the Commis-sioners and the Staff. The Executive Director also oversees the Public Information andEducation Department and the PSC’s Legislative Coordinator. The Public Informationand Education Department develops and distributes press and consumer information oncurrent PSC activities, develops educational pieces for distribution, maintains the PSC

Reports, and deals with other media requests. The Legislative Coordinator is the PSC’s primary liaisonwith the Missouri General Assembly and also assists with education and consumer relations activities.

Adjudication DivisionAdjudication DivisionAdjudication DivisionAdjudication DivisionAdjudication DivisionDale Hardy Roberts, Secretary/Chief Regulatory Law Judge

The Adjudication Division is the PSC’s quasi-judicial Division. A staff of nineAdministrative Law Judges (sometimes called regulatory law judges) handle the casesfrom the day the case is filed until the day it is finally resolved. New cases go to theChief Judge who assigns them to himself or to one of the other eight judges. Thereaf-ter, the assigned Judge presides over the hearings, rules on objections and motions, anddrafts all orders, as directed by the Commission, for that particular case. The Adjudica-tion Division’s Data Center performs the functions of a Clerk of the court in that theData Center receives all incoming pleadings and issues all Commission orders. In

addition, the Data Center stores and preserves the official case files, tariffs and other official documentsof the Commission.

Administration DivisionAdministration DivisionAdministration DivisionAdministration DivisionAdministration DivisionDonna M. Prenger, Director

The Administration Division is responsible for managing the fiscal, personnel, andinformation resources of the agency. This Division oversees budget development, strate-gic planning, internal accounting, procurement, staff services, consumer services, per-sonnel, payroll, information services and training functions for the agency. ConsumerServices, with offices in Jefferson City and St. Louis, is the clearinghouse for all inquir-ies and complaints received by the PSC.

ANNUAL REPORT 2002

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General CounselGeneral CounselGeneral CounselGeneral CounselGeneral CounselDana K. Joyce, General Counsel

The Office of the General Counsel represents the Staff and Commission in allmatters relating to Missouri utility regulation. Its duties consist of traditional legalwork and include providing advice, upon request, to the Commission and each Com-missioner. The Office also represents the Commission in actions involving questionsunder the PSC or other laws, the defense of Commission orders or decisions and, asdirected or authorized by the Commission, the intervention in related proceedings andthe prosecution of actions on behalf of the state as authorized by law.

Utility Operations DivisionUtility Operations DivisionUtility Operations DivisionUtility Operations DivisionUtility Operations DivisionWess Henderson, Director

The Utility Operations Division is comprised of four departments: Telecommunica-tions, Energy, Water and Sewer, and Manufactured Housing. It supports the Commis-sion in meeting its statutory responsibilities by providing technical expertise in energysafety; utility rates, tariffs, rules and regulations; economic analysis; engineeringoversight and investigations; and construction inspections. The Utility OperationsDivision also has oversight of the Manufactured Housing Department’s regulation ofmanufactured home dealers operating in Missouri. The division accomplishes itsmission by making recommendations to the Commission in the form of expert testi-

mony and formal recommendations. Because of its diverse responsibilities, the Utility Operations Division retains a professional staffwith expertise in accounting, economics, finance and engineering.

Utility Services DivisionUtility Services DivisionUtility Services DivisionUtility Services DivisionUtility Services DivisionRobert Schallenberg, Director

The Utility Services Division consists of five departments and supports the Com-mission by providing technical expertise in utility finance, accounting and auditing,natural gas procurement, depreciation analysis and management services. Staff mem-bers assigned to the Division accomplish their mission by performing audits and/orreviews of the books and records of the utilities. Staff draws conclusions from thesefindings and makes recommendations to the Commission in the form of expert testi-mony and formal recommendations. The Division is also responsible for investigating

and responding to consumer complaints and making recommendations to the Commission regardingtheir resolution.

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PUBLICANNUAL REPORT 2002

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MissionMissionMissionMissionMissionThe Missouri Public Service Commission (PSC) regulates investor-ownedpublic utilities operating in Missouri. The PSC has the statutory responsibilityfor ensuring that customers receive adequate amounts of safely delivered andreasonably priced utility services at rates that will provide the companies’shareholders with the opportunity to earn a reasonable return on their invest-ment. The PSC must balance a variety of often competing private interests toensure the overall public interest.

JurisdictionJurisdictionJurisdictionJurisdictionJurisdiction

and Goalsand Goalsand Goalsand Goalsand Goals The Missouri PublicService Commission wascreated in 1913 by thePublic Service CommissionLaw, now Chapter 386 ofthe Missouri Revised Stat-utes. Today, the PSC regu-lates over 1,000 investor-owned electric, natural gas,telephone, and water andsewer utilities. In addition,the PSC regulates the state’s48 rural electric cooperatives and 42 municipally-owned natural gas utilities for operational safety.The PSC also regulates the manufacturers anddealers of manufactured and modular homes. The PSC also oversees service territory issuesinvolving investor-owned electric utilities, ruralelectric cooperatives and municipally-ownedelectric utilities as well as investor-owned waterand sewer utilities and public water supply districts.Under federal law, the PSC acts as a mediator andarbitrator of local telephone service disputesregarding interconnection agreements. Virtually every Missouri citizen receives someform of utility service from an investor-ownedpublic utility company. Utility services and infra-structure are essential to the economy of Missouri.They provide heating and cooling during extremetemperatures. They offer access to emergencyservices and vital information systems. They pro-vide safe drinking water and assure the environ-mentally sound disposal of wastewater. Because

utilities fulfill these essential needs, the PSC mustassure the ratepaying public that quality serviceswill be available on a nondiscriminatory basis atjust and reasonable rates.

CommissionersCommissionersCommissionersCommissionersCommissioners The PSC consists of five commissioners whoare appointed by the Governor with the advice andconsent of the Missouri Senate. The Governordesignates one member as the Chair who serves inthat capacity at the pleasure of the Governor. Commissioners are appointed to six-year terms.These terms are staggered so that no more thantwo terms expire in any given year. The PSC is both quasi-judicial and quasi-legislative. The PSC is responsible for decidingcases brought before it and for the promulgation ofadministrative rules and their enforcement. Many ofthe PSC’s duties are performed by conductinghearings in contested cases, which by statute mustbe transcribed by a court reporter. Hearings are

PSC Commissioners meet twice weekly in agenda sessions--opento the public--to discuss, consider evidence and vote on pendingutility cases.

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conducted in a trial-like setting using evidentiarystandards under the Missouri Administrative Proce-dures Act. The PSC must render decisions in a timelymanner to afford all parties procedural and substantivedue process, and to comply with statutory time limits.

The PSC Staff The Commission is assisted by a staff of profes-sionals in the fields of accounting, consumer affairs,economics, engineering, finance, law and manage-ment. Duties range from helping individual con-sumers with complaints to investigating multi-million dollar utility rate requests. The Staff participates as a party in all casesbefore the PSC. It conducts audits of the books andrecords of utilities and makes recommendations tothe PSC as to what type of rate increase, if any,should be granted. PSC Staff recommendations,like those filed by other parties to a proceeding, areevaluated by the PSC in reaching a decision in acomplaint case or rate case. The PSC has estab-lished standards for safety and quality of service towhich companies must adhere. Routine and specialinvestigations of utilities are conducted by the PSCStaff to ensure compliance.

PSC Electronic Filing andInformation System Project(EFIS)

The PSC EFIS system was implemented inApril 2002. Faster service and improved processingefficiency brought about significant gains in pro-ductivity and improved customer satisfaction.Instead of walking to and from filing cabinets allday, PSC staff can now retrieve and archive infor-mation from their desks using a common Webbrowser to access a customized Web portal thatconnects employees to a central content repository.The new Web portal solution drives the agency’sbusiness processes and enables the automation andmanagement of Web-based content. The time ittakes to respond to requests and inquiries fromutility companies and consumers has been reduced

from weeks or months to a day or less. As a result,the PSC staff can handle workload more efficientlyand enhance their ability to achieve the agency’s corebusiness mandates. EFIS also permits consumers andthe media to have, at their fingertips, access to allpublic testimony and exhibits filed in cases before theCommission.

“The Missouri Public Service Commission isthe first state government utility regulator in thenation to offer this level of Web-enabled businessprocess capability,” stated Gay Smith, projectmanager.

Baseline Awareness Survey Since 2000, the Missouri Public Service Com-mission, through its Public Education SurveyTeam, has worked with the Center for AdvancedSocial Research at the University of Missouri-Columbia on the development and implementationof a baseline awareness survey. This survey hasprovided the Missouri Public Service Commissionwith valuable information on name recognition,how people perceive the Commission, what theyknow about the agency as a whole and what theythink of the type of service and rates of the utilitycompanies that provide them with water, naturalgas, telephone, sewer and/or electricity.

Recently, the Center for Advanced Social Re-search completed a second survey for the PSC. Onethousand twenty-nine randomly selected interviewswere completed via the telephone from December 4,2001 to February 3, 2002. Trained interviewing andsupervising staff at the Center for Advanced SocialResearch at UMC conducted the interviews.

Some 2002 General Survey Results:

� Awareness of the Missouri Public Service Com-mission is high as nearly 75% of those surveyedsaid they had heard of the PSC.

� About two-thirds (66%) knew citizens could fileutility complaints with the Commission.

� The majority of those surveyed were satisfied withtheir utility service and fairness in rates.


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PUBLIC

1717171717

§ Nearly 91 percent of those surveyed showedconfidence in the safety of their utility ser-vices. Responses included “ultimately gov-ernment will control the issues” or “I haveno reason to be worried about the safety.”

§ Approximately 75% of those who attendeda Commission hearing in the past three yearswere satisfied with the way the hearings wereconducted.

§ Most of the citizens who were engaged incontacting the Commission indicated satis-faction with the outcome of their contact withthe PSC.

General Conclusions/RecommendationsGeneral Conclusions/RecommendationsGeneral Conclusions/RecommendationsGeneral Conclusions/RecommendationsGeneral Conclusions/Recommendations:::::

§ The 2002 survey results suggest the PSC is mak-ing significant progress toward achieving goalsof informing consumers of the PSC’s work andaccomplishing quality utility services.

§ Increased publicity and alternatives for commu-nicating with the public are needed for local pub-lic hearings using various mediums (print, radio,television).

§ Increase public awareness of the PSC and issuesby using Public Service Announcements, bill-boards, talk show forums, etc.

§ Increase education of the ratepayers of tomor-row.

The Commission’s Public Education Survey Teamcontinues to work with the University of Missouri-Columbia regarding various survey recommendations.

The Missouri Public Service Commission heldseveral local public hearings around the state toaddress a wide variety of topics, including raterequests and service quality issues.

Local Public HearingsLocal Public HearingsLocal Public HearingsLocal Public HearingsLocal Public HearingsThe Missouri Public Service Commission often

holds local public hearings throughout the state toreceive customer comment on a rate request beforethe Commission. Customers are also encouragedto attend local public hearings to give the Commis-sion information on any service-related problemsthey might be having.

During fiscal year 2002, the Commission held anumber of local public hearings including ones inSt. Louis, Raytown, Warrensburg, Foristell andLinn. These hearings addressed a wide range ofissues from rate requests and service quality issuesto the building of a proposed electric transmissionline.

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ANNUAL REPORT 2002

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As the environment around utility regulationcontinues to change, the role of the Missouri PublicService Commission with regards to public infor-mation and education changes as well. At no othertime has the general public’s thirst for informationregarding their utility company and the services andrates it provides been greater. The Public Informa-tion and Education Department works to meet thatneed in terms of educational materials and mediainformation.

During the past fiscal year, the Public Informa-tion and Education Department created severalinformation brochures and flyers on a number oftopics including: what you should know aboutnatural gas heating bills, helping you understandyour telephone bill, winter service disconnections, asnapshot of what the Public Service Commissiondoes, energy conservation tips for winter andsummer, electricity safety, what to do when chang-ing utility service when you move, the tele-phone link-up and lifeline programs, and savingwater can save you money.

In addition, the Public Information andEducation Department has developed a quar-terly newsletter that provides utility-relatedinformation pieces for consumers.

As part of its function, the Public Informa-tion and Education Department also issuespress releases on Commission decisions andprovides detailed information sheets that areused at local public hearings conductedthroughout Missouri. As part of that localpublic hearing process, the department facili-tates an open question-and-answer session

prior to the actual local public hearing to giveconsumers the opportunity to ask questions about arate case before the Commission.

The Public Information and Education Depart-ment also operates a list serve which allows themedia and consumers to get press releases andother consumer information electronically as soonas it is issued by the Commission.

Each year, the Public Information and Educa-tion Department coordinates the Public ServiceCommission booth at the Missouri State Fair inSedalia. This PSC fair booth gives consumers fromacross the state an opportunity to speak one-on-one with PSC Staff about any utility questions and/or problems.

This fiscal year, the Public Information andEducation Department began development of aprogram designed to help educate grade schoolstudents to be safe around electricity.

Public Information Coordinator Gregg Ochoaanswers questions at the PSC information boothduring the 2002 Missouri State Fair in Sedalia.

Public Information and Education DepartmentPublic Information and Education DepartmentPublic Information and Education DepartmentPublic Information and Education DepartmentPublic Information and Education Department


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Mediation PrMediation PrMediation PrMediation PrMediation Processocessocessocessocess The Adjudication Division has developed amediation process whereby parties may refercomplaint cases to a third-party neutral mediator.This service is offered, at no cost, by the Alterna-tive Dispute Resolution Center at the University ofMissouri-Columbia School of Law, which wasrecently ranked the number one mediation center inthe United States. The mediation process is voluntary, and casesare resolved when both parties come to a mutualagreement. This process does not require legalcounsel and should be less expensive, lessadversarial, less formal, less time-consuming andmore personal than a formal evidentiary hearingbefore the full PSC. Mediations are confidential and settlementoffers as well as other disclosures made during amediation session are not admissible at a laterhearing or trial.

Chapter 2Chapter 2Chapter 2Chapter 2Chapter 2 This portion of State Regulations contains theMissouri PSC’s rules and the procedural require-ments for pleading and practice before the PSC.These are the “rules of court,” for practice before

Practice BeforPractice BeforPractice BeforPractice BeforPractice Before the Commissione the Commissione the Commissione the Commissione the Commission The Adjudication Division is comprised of theData Center (formerly known as the RecordsDepartment) and the Regulatory Law Judges. TheDivision Director is both the Secretary of the PSCand the Chief Judge. The Secretary is statutorilyresponsible for the records of the PSC and isspecifically called upon to superintend the issuanceof all PSC orders.

The Data Center is responsible for maintaining acomplete and accurate record of every case whichcomes before the PSC. This department receivesthousands of documents per month, each one ofwhich must be reviewed, distributed and main-tained in the permanent case file. The Data Centeralso issues hundreds of formal orders each month. The Chief Judge is the Division Director of theAdjudication Division and acts as the Chief Judgeof the nine-judge panel. The Judges receive trainingat the National Judicial College for proceduralskills specific to the PSC and also at various utilityseminars and conferences for substantive training inthe disciplines of economics, accounting and

engineering as they relate to the regulated utilities.The Chief Judge assigns newly filed cases to theother Judges on a rotational basis and, thereafter,the individual judge is responsible for supervisingthat particular case and coordinating the proce-dures with the Commissioners. The Judge prepares and issues preliminaryorders to provide notice and procedural due pro-cess so that all parties have the opportunity for afull, fair and informative hearing. The primaryconcern for the Judge is to ensure a complete andcompetent record is compiled upon which the PSCmay base its decision. It is the duty of the Judge totake the case from initial assignment all the waythrough to the post hearing briefs and preparationof a final order reflecting the Commission’s find-ings of fact and conclusions of law.

Regulatory Law Judge Nancy Dippell (farright) conducts a formal evidentiary hearingon a proposed transmission line case beforethe PSC. Looking on is Commissioner ConnieMurray (seated at left behind the bench).

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ANNUAL REPORT 2002

the PSC and contain filing require-ments and evidentiary rules, as wellas many other procedural rules andrequirements for contested casesand for rulemaking procedures. ThePSC has worked to reduce the filingburden on all parties who appearbefore the PSC. In several placesthe filing requirements have beeneased so that the amount of paperfiled with the PSC has been signifi-cantly reduced or completelyeliminated. In addition, this chapteris filed and has been published bythe Missouri Secretary of State.

List ServeList ServeList ServeList ServeList ServeOn May 1, 1999, the Adjudica-

tion Division initiated an interactive e-mail deliveryservice (generically referred to in computer circlesas a “list serve”) for the purpose of delivering thePSC Agenda, hearing schedule(s), orders and otherdocuments to various interested parties.

This service provides free access to citizens byproviding a Web-based e-maillist management system. Thesoftware automatically sendsemail to all presubscribedparties on the mailing list withjust one click, manages themailing list and convenientlystores all issued messages forreference or re-use. Thisallows the Adjudication Divi-sion to ensure mass, andimmediate, electronic distribu-tion of any order, notice orother document to all recipi-ents and eliminates the delay

Deputy Chief Regulatory Law Judge Kevin Thompson(center) meets with new Regulatory Law Judges RonPridgin (seated) and Kennard Jones.

Data Center Manager Kim Happy (left) and Christy Kempkerscan documents so they may be entered into EFIS.

and cost which is inherent in regular delivery of thepaper copy. Any interested person may subscribe tothis service, at no cost, by visiting the PSC’s webpage at:

http://www.psc.state.mo.us


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1016 1031

1237 12431143

0

200

400

600

800

1000

1200

1400

1998 1999 2000 2001 2002

Tariff Filings Per Year

589 619

862

713

628

0

100

200

300

400

500

600

700

800

900

1998 1999 2000 2001 2002

PSC Cases Per Year

Utility IssuesUtility IssuesUtility IssuesUtility IssuesUtility Issues Change continues to occur in utility industries, and with that change, the workload of the MissouriPublic Service Commission continues to grow as the PSC evaluates and implements these changes. New state and federal legislation as well as federal agency activity and the changing regulatory envi-ronment have required, and will continue to require, a large commitment of resources in order for thePSC to stay current on developments and to influence state and national policy to the benefit of Missouriratepayers.

ELECTRICELECTRICELECTRICELECTRICELECTRICAmerAmerAmerAmerAmerenUE Electric Rate ReductionenUE Electric Rate ReductionenUE Electric Rate ReductionenUE Electric Rate ReductionenUE Electric Rate Reduction

In July 2002, the Commission approved anagreement between its Staff, AmerenUE, the Officeof Public Counsel, and numerous intervenors,which resulted in an electric rate rrate rrate rrate rrate reduction thateduction thateduction thateduction thateduction that

was among the largest in state historwas among the largest in state historwas among the largest in state historwas among the largest in state historwas among the largest in state historyyyyy. Over thenext three years, electric rates for AmerenUE’s 1.1million electric customers will drwill drwill drwill drwill dropopopopop by increasingamounts reaching $110 million on an annual basis.In addition, this agreement provides for a one-timebill credit of $40 million as well as customer-assistance programs that are funded solely byAmerenUE’s shareholders.

“Rate reductions, a bill credit, customer-assistance programs and a commitment regardinginfrastructure investment in Missouri make thisagreement a win-win for all parties,” stated Com-mission Chairman Kelvin Simmons.

This complaint case was initiated by the PSCStaff with testimony that alleged AmerenUE’selectric rates were not just and reasonable andshould be reduced. Chairman Simmons recognizedthe Staff’s commitment in the case. “The PSC

Staff worked very hard in this case and this agreementresults from their efforts as well as the efforts of allother parties to the proceedings.”

The agreement approved by the Commissionalso includes funding by AmerenUE shareholders ofapproximately $16 million in customer-assistanceprograms as well as another $9 million for aneconomic development program.

Under the agreement, AmerenUE committed toundertake billions of dollars worth of energyinfrastructure investment including additionalgeneration capacity and transmission system up-grades.

The agreement also states that unless there is asignificant, unusual event that has a major impacton AmerenUE, AmerenUE will not file for a rateincrease and the parties will not file for a ratedecrease before January 1, 2006.

According to AmerenUE, these Commissionauthorized rate reductions will place electric ratesin their service territory at 1986 levels. Precedingthe series of rate reductions that has occurred in thelast decade, significant rate increases toAmerenUE’s customers were necessary to imple-ment costs of the Callaway nuclear plant.

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ANNUAL REPORT 2002

2222222222

RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIALState Name State Name State Name State Name State Name AAAAAvg. Revenue Statevg. Revenue Statevg. Revenue Statevg. Revenue Statevg. Revenue State

(cents/kWh) Rank (cents/kWh) Rank (cents/kWh) Rank (cents/kWh) Rank (cents/kWh) Rank

Hawaii 16.41New York 14.03New Hampshire 13.14California 10.85Illinois 8.83Iowa 8.37U.S. Avg. 8.21Kansas 7.65Arkansas 7.45Missouri 7.04Oklahoma 7.03Nebraska 6.53Kentucky 5.47Idaho 5.39Washington 5.13

1 2 3 91318

26323737373737

3841495051

COMMERCIALCOMMERCIALCOMMERCIALCOMMERCIALCOMMERCIALState NameState NameState NameState NameState Name AAAAAvg. Revenuevg. Revenuevg. Revenuevg. Revenuevg. Revenue State State State State State

(cents/kWh) (cents/kWh) (cents/kWh) (cents/kWh) (cents/kWh) RankRankRankRankRank

Hawaii 14.81 1New York 12.54 2New Hampshire 10.87 3California 10.55 6Illinois 7.53 16U.S. Avg. 7.36Iowa 6.57 24Kansas 6.25 33Oklahoma 6.14 34Arkansas 5.93 38Missouri 5.83 40Nebraska 5.42 45Oregon 5.06 49Washington 4.86 50Idaho 4.24 51

INDUSTRIALINDUSTRIALINDUSTRIALINDUSTRIALINDUSTRIALState NameState NameState NameState NameState Name AAAAAvg. Revenuevg. Revenuevg. Revenuevg. Revenuevg. Revenue StateStateStateStateState

(cents/kWh) (cents/kWh) (cents/kWh) (cents/kWh) (cents/kWh) RankRankRankRankRank

Hawaii 14.69 1New Hampshire 9.1 2Rhode Island 8.7 3California 7.22 9Illinois 4.76 18U.S. Avg. 5.57Kansas 4.55 23Missouri 4.43 26Arkansas 4.2 29Oklahoma 4.09 34Iowa 3.89 38Nebraska 3.61 44Idaho 3.11 49Kentucky 3.01 50Montana 2.48 51

Source: US Energy Information Administration - 2000 data

Missouri Electric RatesMissouri Electric RatesMissouri Electric RatesMissouri Electric RatesMissouri Electric Rates

Through the efforts of Missouri’s electricutilities and the PSC, all classes of Missouri cus-tomers have benefited from low electric rates. TheUnited States Energy Information Administration, anon-partisan office in the federal Department ofEnergy, annually ranks states according to theiraverage rates in cents per kilowatt-hour. In 2001,Missouri electric rates for residential, commercialand industrial customers were better than thenational average (see tables on this page).

Missouri Public ServiceMissouri Public ServiceMissouri Public ServiceMissouri Public ServiceMissouri Public Service

Electric Rate ReductionElectric Rate ReductionElectric Rate ReductionElectric Rate ReductionElectric Rate Reduction

On June 8, 2001 Missouri Public Service, adivision of UtiliCorp United, Inc. (MPS), filed arate case designed to increase revenues by $49.3million (16.9%) to recover costs associated with acontract for capacity and energy as well as to reflectan increase in natural gas prices.

The PSC Staff conducted an audit of the booksand records of MPS that resulted in the Staff filingtestimony stating that MPS’s current rates shouldbe reduced. In February 2002, the Commissionapproved an agreement that reduced the annualelectric revenues of MPS by approximately $4.2million.

Emergency PrEmergency PrEmergency PrEmergency PrEmergency Preparepareparepareparednessednessednessednessedness

The terrorist attacks in New York City andWashington on September 11, 2001, had a pro-found impact on our country. At the MissouriPublic Service Commission, the PSC Staff filed amotion with the Commission seeking to open acase to receive information from Missouri utilitycompanies regarding their preparedness for disasterand emergency situations.

Utility Operations Division Director WessHenderson noted: “In light of the disaster in NewYork City and Washington on September 11, 2001,we believe now is a very good time to reviewCompany preparedness in case of a disaster oremergency.” The Commission did something verysimilar when working with utility companiespreparing for Y2K.

A questionnaire was sent to all utility compa-nies operating in Missouri asking for information

20


regarding their plans in case of a disaster oremergency including employee training,emergency drills, and coordination with andreporting to local, state and federal agencies.The PSC Staff held a roundtable with thestate’s utilities and other interested parties todiscuss security issues and a list of best prac-tices was developed and posted to the PSC’sInternet site.

Ice StormIce StormIce StormIce StormIce Storm

The worst ice storm in over 100 years hitwestern Missouri in late January 2002 causinga disruption in service to nearly 400,000customers. Work crews from 16 differentstates and from as far away as Georgia cameto western Missouri in an effort to rapidlyrestore power to as many customers as pos-sible. The PSC Staff filed a report in June regard-ing the utilities’ responses. Staff found that theutilities quickly activated emergency response andrestoration plans. However, the Staff also found aneed for utilities to work to enhance their commu-nications with affected customers and city officials.Staff’s investigation also showed that tree-trimmingcycles were not on schedule. Prior to the end of2002, the PSC Staff plans to review each of thereport’s recommendations with the utility compa-nies affected by the ice storm.

Federal Federal Federal Federal Federal Activity in ElectricityActivity in ElectricityActivity in ElectricityActivity in ElectricityActivity in Electricity

This past year, most federal activity focused ontransmission, with significant changes in RegionalTransmission Organizations (RTOs). The size ofthe RTO in the Midwest has expanded as theFederal Energy Regulatory Commission (FERC)rejected both the Southwest Power Pool’s (SPP’s)and the Alliance Companies’ applications forapproval as separate RTOs. The basis for theserejections was insufficient geographic size andscope for electricity markets. These FERC deci-sions related to RTO size and scope resulted in: 1)a proposed merger of the Midwest IndependentSystem Operator (MISO) with the SPP; and 2) theAlliance Companies, which included AmerenUE,

having to choose whether to join MISO or anotherRTO. With these changes, it appears that allMissouri investor-owned utilities are likely to jointhe merged SPP/MISO entity.

The merged SPP/MISO covers an area on thewestern section, from northern Texas to Manitoba,Canada; in the mid-section from Missouri-Illinoisto Wisconsin; and in the eastern section, fromKentucky to Michigan. In addition, this largemulti-state RTO is working with the Pennsylvania,New Jersey and Maryland Independent SystemOperator (PJM ISO) to form a single electricitymarket.

This summer (July 31, 2002), the FERC issueda Notice of Proposed Rulemaking (NOPR) thatdescribes its Standard Market Design (SMD). Theproposed SMD includes a number of significantchanges. These significant changes in marketstructure will have a major impact on the operationof wholesale electricity markets, and could alsoaffect the costs of providing service to bundledretail consumers in Missouri. The Missouri PSCcontinues to be highly involved in the developmentof the RTOs, but with the issuance of this proposedchange, these efforts are now extended to includethe impacts that such a significant change may haveon Missouri electricity consumers.

A devastating ice storm hits western Missouri inlate January. (Photo courtesy of Missouri PublicService.)

21

ANNUAL REPORT 2002

TTTTTransmission Upgradesransmission Upgradesransmission Upgradesransmission Upgradesransmission Upgrades

As the demand for electricity continues toincrease, electric utilities make upgrades to im-prove their transmission and distribution systems.In January 2002, AmerenUE filed for Commissionauthority to construct a transmission line in Maries,Osage and Pulaski counties to enable AmerenUE toprovide reliable service to its customers and torelieve overloads on nearby lines. Testimony wasfiled regarding the need for the line and the impactthat the line will have on the public whose propertywill be impacted. Hearings were scheduled forSeptember and October of 2002.

Rate Cases Decided:Rate Cases Decided:Rate Cases Decided:Rate Cases Decided:Rate Cases Decided:

The EmpirThe EmpirThe EmpirThe EmpirThe Empire District Electric Companye District Electric Companye District Electric Companye District Electric Companye District Electric Company

On November 2, 2000, The Empire DistrictElectric Company (Empire) filed a rate case re-questing that its permanent electric revenues beincreased by approximately $41.4 million a year toreflect the addition of the State Line CombinedCycle Power Plant as well as natural gas costsassociated with the operation of that facility.

The PSC approved an agreement reached byparties in the case in September 2001, whichresulted in a permanent increase of $17.1 million.This agreement also established an experimentalinterim energy charge designed to attempt toaddress the potential volatility in natural gas and

wholesale electricity prices. This interim energycharge is subject to refund, with interest, dependingon Empire’s prudently natural gas and purchasedpower costs.

Citizens Electric CorporationCitizens Electric CorporationCitizens Electric CorporationCitizens Electric CorporationCitizens Electric Corporation

The Commission approved an agreement thatauthorized Citizens Electric Corporation (Citizens)to increase its rates on an interim basis by $4.6million on January 1, 2002 to reflect the cost of anew purchase power agreement that took effect onthat day. Citizens purchases all of its power fromwholesalers.

In June 2002, the PSC approved an agreementbetween the parties in the rate case that made theinterim revenue increase permanent and increasedCitizens’ electric revenues by an additional $1.6million. Citizens is an electric cooperative, whollyowned by its members, that is regulated by thePSC. This was the first general rate increase forCitizens in approximately 20 years.

Pending Rate IncrPending Rate IncrPending Rate IncrPending Rate IncrPending Rate Increase Request:ease Request:ease Request:ease Request:ease Request:

The EmpirThe EmpirThe EmpirThe EmpirThe Empire District Electric Companye District Electric Companye District Electric Companye District Electric Companye District Electric Company

On March 8, 2002, The Empire District Elec-tric Company (Empire) filed a $19.7 million electricrate case. Empire also filed for interim rate relief tocorrect a mistake that was discovered after theCommission reached its decision in the last Empire

electric rate case. The Com-mission denied the request forinterim rate relief. The Com-mission did approve an agree-ment that reduced the experi-mental interim energy chargeapproved in Empire’s last ratecase by approximately $7million, effective in June 2002.Hearings on the permanentrate request were scheduledfor October 2002.

Energy Department staff members James Watkins and LenaMantle discuss issues in an electric rate case.


22

$50

$55

$60$65

$70

$75

1998 1999 2000 2001 2002

Bill

Aquila Networks - MPSAquila Networks - L&PEmpire District Electric Co., TheKansas City Power & Light Co.Union Electric Co., d/b/a AmerenUE

Residential Electric CustomerResidential Electric CustomerResidential Electric CustomerResidential Electric CustomerResidential Electric Customer

Bill for 1,000 kWh in JanuaryBill for 1,000 kWh in JanuaryBill for 1,000 kWh in JanuaryBill for 1,000 kWh in JanuaryBill for 1,000 kWh in January

$50$55$60$65$70$75$80$85$90$95

1998 1999 2000 2001 2002

Bill

Aquila Networks - MPSAquila Networks - L&PEmpire District Electric Co., TheKansas City Power & Light Co.Union Electric Co., d/b/a AmerenUE

Residential Electric CustomerResidential Electric CustomerResidential Electric CustomerResidential Electric CustomerResidential Electric Customer

Bill for 1,000 kWh in JulyBill for 1,000 kWh in JulyBill for 1,000 kWh in JulyBill for 1,000 kWh in JulyBill for 1,000 kWh in July

Reorganizations/Reorganizations/Reorganizations/Reorganizations/Reorganizations/

RestructuringRestructuringRestructuringRestructuringRestructuring

During the fiscal year, theMissouri Public Service Com-mission approved applicationsfiled by Kansas City Power &Light Company (KCPL) andLaclede Gas Company(Laclede) regarding reorgani-zation plans or restructuring.

In July 2001, the Commis-sion approved an agreementwhich authorized KCPL toreorganize and become oneof three companies underthe holding company GreatPlains Energy, Incorpo-rated.

Under the reorganiza-tion plan, KCPL will stillretain all of its currentpower plant facilities. Inaddition, the Missouri PublicService Commission willretain jurisdiction (includingthe setting of electric rates)of KCPL.

The three subsidiariesunder Great Plains Energywill be KCPL, KLT andGreat Plains Power, Incorpo-rated.

The agreement approvedby the Commission containsseveral financial conditions designed to protectMissouri KCPL customers.

In August, the Commission approved an agree-ment which authorized Laclede Gas Company torestructure, merge and form subsidiary companies.

Laclede Group, Inc. is the parent holdingcompany and Laclede Gas Company becomes anindependent subsidiary.

Laclede Gas Company stated in its applicationthat the proposed restructuring would provide aseparation between its regulated and unregulatedassets and operations.

Laclede further noted that the proposed re-structuring did not involve the transfer of utility-owned assets or any significant transfer of utilityemployees.

23

ANNUAL REPORT 2002

NANANANANATURALTURALTURALTURALTURAL GAS GAS GAS GAS GAS

Natural Gas Commodity Price Natural Gas Commodity Price Natural Gas Commodity Price Natural Gas Commodity Price Natural Gas Commodity Price TTTTTask Forask Forask Forask Forask Forcecececece

In response to the extraordinary weatherand natural gas price spikes of the 2000-2001winter the PSC created a Natural Gas Com-modity Price Task Force on January 23, 2001.

This task force was created to investigatethe process for the recovery of natural gascommodity cost increases by LDCs (LocalDistribution Companies) from their custom-ers and to discuss options.

The result of this effort was a task forcereport that provided an assessment of whathappened to natural gas prices during the2000-2001 winter, the impacts to natural gasconsumers, a policy statement, and 11 rec-ommendations to the PSC. The transcripts fromthe public meetings and final report of this taskforce have been made available on the PSCwebsite.

The recommendations of this group are eachbeing evaluated and implemented as determined tobe appropriate. One recommendation that hasalready been incorporated is changing the fre-quency of PGA rate change filings to four times ayear. Other recommendations regarding gas pur-chasing planning and volatility mitigation continueto be addressed in meetings with LDCs. A genericdocket was opened by the Commission to address anumber of the remaining recommendations. Tariffchanges and rulemaking associated with this ge-neric docket are ongoing.

PurPurPurPurPurchased Gas chased Gas chased Gas chased Gas chased Gas Adjustment (PGA)Adjustment (PGA)Adjustment (PGA)Adjustment (PGA)Adjustment (PGA)

On March 26, 2002, the Commission estab-lished a case (GO-2002-452) to review the PGAclauses of all Missouri LDC’s. Establishment ofsuch a case was one of a number of recommenda-tions contained in a report filed by the PSC NaturalGas Commodity Price Task Force.

The PSC Staff and other interested parties arecurrently reviewing the PGA process, and willmake recommendations at a later point in time.

Chairman Simmons Chairman Simmons Chairman Simmons Chairman Simmons Chairman Simmons TTTTTakes Energyakes Energyakes Energyakes Energyakes Energy

Assistance Needs to State CapitolAssistance Needs to State CapitolAssistance Needs to State CapitolAssistance Needs to State CapitolAssistance Needs to State Capitol

In October 2001, Commission Chairman KelvinSimmons took his call for more funding to helpthose in need pay their utility bills to the MissouriState Capitol. Appearing before the Joint InterimCommittee on Telecommunications & Energy,Chairman Simmons discussed energy assistancefunding and disconnects-reconnects of natural gasservice heading into the winter.

“Approximately 29,000 Missouri householdscurrently are still without natural gas service due todisconnections while another 50,000 householdsface the possibility of being disconnected fornonpayment,” Simmons told committee members.“There are a number of our citizens that are greatlyin need of assistance before cold weather sets in. Iplan to continue to work with the Missouri Con-gressional delegation on their behalf. I will alsohave to explore other strategies which may be ableto help.”

Emergency Emergency Emergency Emergency Emergency Amendment to Cold Amendment to Cold Amendment to Cold Amendment to Cold Amendment to Cold WWWWWeathereathereathereathereather Rule Rule Rule Rule Rule

Prior to the onset of cold weather during thewinter of 2001-2002, the PSC issued an orderapproving an Emergency Amendment to the ColdWeather Rule that stated:

Gas safety specialists like John Kottwitz (left) andGreg Williams conduct inspections of natural gassystems across the state to ensure compliance withCommission rules and regulations.


24

“The Missouri Public Service Commission finds thatthere is an immediate danger to the public health, safety,and welfare and a compelling governmental interestbecause thousands of Missourians face immediate andirreparable harm from the impending winter weatherwithout a source of heat. This immediate dangerrequires emergency action.” The emergency amend-ment took effect on November 18, 2001 and continueduntil the end of the Cold Weather Rule period (March31, 2002).

“There is no question that an emergency amend-ment to the Cold Weather Rule is needed given theextraordinary circumstances of last winter,” statedCommissioner Sheila Lumpe. “This emergencyamendment is designed to provide more lenientpayment terms to those customers with limitedincomes while also helping to restore service to theirhomes.”

The Commission noted in its order that therewas an unusually high number of residential custom-ers without natural gas service. “There are at least29,000 Missouri residential households without gasservice, and perhaps as many as 40,000 to 50,000.The cause of so many customers being without gas

service is the combination of extremely high gasprices in combination with extremely cold weatherin November and December of 2000. This combi-nation was an extraordinary event. As a result,not only are an extraordinary number of house-holds without gas service or in danger of losingservice, but the average amount of arrearage isalso extraordinarily high. As of August 2001,there was a 37 percent increase in the number ofdisconnects for Missouri LDCs as a group, andthe amount owed increased by 117 percent.”

The emergency amendment was implementedby all but two natural gas companies. MissouriGas Energy and Atmos Energy Corporationchallenged the Commission’s decision in thecourts.

ConsumerConsumerConsumerConsumerConsumer AlerAlerAlerAlerAlert fort fort fort fort for the the the the the

Upcoming Heating SeasonUpcoming Heating SeasonUpcoming Heating SeasonUpcoming Heating SeasonUpcoming Heating Season

The Commission issued an alert to consumersin April of 2002, which indicated that the winterof 2000-2001, with its extremely cold weather andrecord-high natural gas prices, created an extraor-dinarily difficult situation for Missourians as well

Residential Natural Gas Heating Customer

Annual Usage at 120Mcf(Dth)

$400$450$500$550$600$650$700$750$800$850$900$950

$1,000$1,050$1,100$1,150$1,200

1997 1998 1999 2000 2001

Ann

ual F

uel B

ill

AmerenUE (PEPL Area) Laclede GasAtmos Energy Corp. (SEMO District) Missouri Gas Energy

ANNUAL REPORT 2002

25

2828282828

as natural gas customers throughout the country.In the winter 2001-2002, consumers saw signifi-cantly lower natural gas prices because of warmerweather and adequate natural gas supplies. TheCommission’s alert indicated that a number offactors give rise to concern regarding natural gasprices for the 2002-2003 winter heating season. Afew of the reasons noted were lower rig counts,additional gas fired electric generation, the possibil-ity of an El Nino summer, instability in the MiddleEast and a possible increase in overall economicactivity. These factors could lead to a possibleincrease in natural gas prices.

IIIIIncentive Regulationncentive Regulationncentive Regulationncentive Regulationncentive Regulation

On September 20, 2001, the Commissiondetermined that Laclede Gas Company’s Experi-mental Gas Supply Incentive Plan (GSIP) shouldexpire on October 17, 2001.

This experimental program expired due to thefact that Laclede did not sustain its burden of proofthat the GSIP struck a proper balance betweenratepayer and shareholder interests, the goal ofsuch a plan. The Commission noted in its decisionthat the GSIP generated large profits for LacledeGas Company, but did not create any significantsavings on the demand cost of gas for its custom-ers. The Commission indicated that pre-approvalas requested by Laclede could discourage thenatural gas company from taking opportunities tosecure fixed price contracts that would producereasonable price protection for its customers.

New Experimental Low-IncomeNew Experimental Low-IncomeNew Experimental Low-IncomeNew Experimental Low-IncomeNew Experimental Low-Income

Rate Granted in MGE Rate CaseRate Granted in MGE Rate CaseRate Granted in MGE Rate CaseRate Granted in MGE Rate CaseRate Granted in MGE Rate Case

On November 7, 2000, Missouri Gas Energy, adivision of Southern Union Company (MGE), fileda natural gas rate case seeking to increase annualrevenues by approximately $39.3 million. On July5, 2001, the Commission accepted an agreementreached by parties in the case that authorized anannual revenue increase of approximately $9.9million. Part of the increased funding will expandMGE’s weatherization program, which has beenbenefiting low-income customers for several years.In addition, a new experimental low-income ratewill be implemented in the Joplin area. The experi-

mental two-year program will operate in Joplin,providing financial assistance to a maximum of1,000 low-income families. Participants in theexperimental plan will receive bill credits of either$20 or $40 a month, depending on income.

School School School School School AggrAggrAggrAggrAggregation egation egation egation egation TTTTTarifarifarifarifariffsfsfsfsfs

During the 2002 legislative session, the Mis-souri General Assembly passed House Bill 1402.This bill in part, established initiation of aggrega-tion and transportation of natural gas for publicschool districts. Upon the Governor’s approval ofthe bill, all LDCs were required to file experimentaltariffs by August 1, 2002 allowing public schooldistricts the opportunity to aggregate and transportnatural gas for a period beginning no later thanNovember 1, 2002 through June 30, 2005. For thefirst year, these tariffs are designed to allow anyseven-director school district to purchase gas on anaggregated basis through a not-for-profit schoolassociation and transport it to the participatingschool districts. Beginning in July of 2003, theprogram will expand to include any school forelementary or secondary education whether acharter, private or parochial school district.

UndergrUndergrUndergrUndergrUnderground Utility Damageound Utility Damageound Utility Damageound Utility Damageound Utility Damage

PrPrPrPrPrevention Legislationevention Legislationevention Legislationevention Legislationevention Legislation

During the 2001 legislative session, the PSCworked with Missouri One-Call Systems (MOCS)personnel, numerous underground utility operators,and representatives of excavation contractors togain support for improved damage preventionlegislation. House Substitute for House CommitteeSubstitute for House Bill No. 425 was passed bythe 91st General Assembly. This legislation estab-lishes a true one-call system in the state. Allowners of underground facilities in Missouri arerequired to be members of the MOCS. So, withone call, a person planning excavation work canhave all the underground facility owners in the areaof a proposed excavation notified and facilitieslocated. Signed by Governor Bob Holden, this billbecame law on August 28, 2001. Previously, areliable system was not available for those seekingto perform excavation work to identify all under-ground facility owners in an excavation area. Prior


26

to this legislation, owners of natural gas facilitieswere required to participate in the MOCS, butparticipation in the MOCS by the other under-ground facility owners was voluntary. Universalparticipation in the MOCS will increase publicsafety by better protecting Missouri’s undergroundinfrastructure. The PSC Staff has worked withMOCS to inform all PSC regulated utilities withunderground facilities about changes to the statute.Specifically, owners and operators of undergroundfacilities in first-and second-class counties arerequired to become MOCS members before Janu-ary 1, 2003, and in third and fourth-class countiesbefore January 1, 2005.

UndergrUndergrUndergrUndergrUnderground Damage Pround Damage Pround Damage Pround Damage Pround Damage Prevention Prevention Prevention Prevention Prevention Programsogramsogramsogramsograms

In 1999, the PSC participated in an unprec-edented national study of Damage Prevention BestPractices, sponsored by the Federal Office ofPipeline Safety (OPS). This study was conductedby more than 160 stakeholders representing mul-tiple industries and interest groups across thecountry.

The study resulted in a report titled “CommonGround: Damage Prevention Best Practices Re-port” (August 1999) which contains key elementsto successful damage prevention programs. Dam-age prevention work on a national level continuesthrough Common Ground Alliance (CGA). ThePSC continues its participation in this nationalinitiative which seeks to reduce damage to under-ground facilities.

A group of Missouri stakeholders formedMissouri Common Ground (MCG) with the mis-sion of identifying and promoting the Best Prac-tices to prevent underground facility damage. ThePSC’s Gas Safety/Engineering Staff is part of theSteering Committee of MCG, facilitating its forma-tion and continuing to encourage the developmentof several Regional Damage Prevention Councilsthroughout Missouri.

To date, seven Regional Damage PreventionCouncils have been established with the intent ofproviding a forum to promote not only communica-tion and education, but to improve policies, im-prove coordination, form guidelines, and enhance

Missouri Jurisdictional Gas Utilities

Inspection Units - Gas Safety

60

70

80

90

100

110

120

1997 1998 1999 2000 2001

Year

Insp

ecti

on

Un

its/

Insp

ecte

d

Number of Inspection Units Units Inspected

Source: MoPSC FERC pipeline safety budget material submitted to the U.S. Department of Transportation

27

ANNUAL REPORT 2002

120

140

160

180

200

220

1997 1998 1999 2000 2001

Year

MM

Btu

Sol

dM

illio

ns

Electric Gas

Missouri Jurisdictional ElectricMissouri Jurisdictional ElectricMissouri Jurisdictional ElectricMissouri Jurisdictional ElectricMissouri Jurisdictional Electric

and Gas Utilities MMBtus Soldand Gas Utilities MMBtus Soldand Gas Utilities MMBtus Soldand Gas Utilities MMBtus Soldand Gas Utilities MMBtus Sold

Missouri’s damage prevention statute.Grass-roots participation in, and support of

damage prevention practices by all stakeholders (allunderground facility owners, excavators, locatingpersonnel, builders/developers and others) is thefoundation upon which a successful damage pre-vention program, for all underground facilities inMissouri, can be built.

MCG recently became a partner with CGA,which will bring national recognition to this stateorganization and will better facilitate communica-tion on Best Practices and improve membership.

Missouri Missouri Missouri Missouri Missouri Association of Natural Gas OperatorsAssociation of Natural Gas OperatorsAssociation of Natural Gas OperatorsAssociation of Natural Gas OperatorsAssociation of Natural Gas Operators

MANGO (Missouri Association of Natural GasOperators) is a nonprofit organization comprised ofNatural Gas Operators. These Operators worktogether with the PSC Gas Safety/EngineeringStaff to enhance the operations and safety ofnatural gas utilities.

MANGO works with the PSC to review exist-ing regulations, clarify interpretations and provide

support in developing new regulations. The goal isto work together to address potential hazards suchas directional drilling, defective materials and otherissues that arise, as well as foster continuing dialogto operate the natural gas systems in the state assafely as possible.

The PSC and MANGO conduct annual meet-ings to stay current on issues, trends in the industryand other issues affecting the operators’ opera-tions.

Federal Natural Gas Federal Natural Gas Federal Natural Gas Federal Natural Gas Federal Natural Gas ActivitiesActivitiesActivitiesActivitiesActivities

Decisions by the Federal Energy RegulatoryCommission (FERC) directly impact Missouriratepayers since Missouri’s LDCs must use FERC-regulated interstate pipelines for delivery of theirnatural gas supplies. The PSC believes its involve-ment in FERC and related judicial proceedings isnecessary to ensure that Missouri natural gasconsumers receive reliable service at reasonablerates.

There are 10 interstate pipelines directly


28

3131313131

serving Missouri with several additional upstreampipelines that are not in our state which are used byour LDCs. The PSC actively participates in manyproceedings, company-specific and generic, focus-ing on those having the greatest impact to Missouriand/or those where representation of Missouriinterests is limited or absent. The PSC’The PSC’The PSC’The PSC’The PSC’s federals federals federals federals federal

gas activities rgas activities rgas activities rgas activities rgas activities resulted in $26.7 million in costesulted in $26.7 million in costesulted in $26.7 million in costesulted in $26.7 million in costesulted in $26.7 million in cost

savings ($2.3 million in rate rsavings ($2.3 million in rate rsavings ($2.3 million in rate rsavings ($2.3 million in rate rsavings ($2.3 million in rate refunds and $24.4efunds and $24.4efunds and $24.4efunds and $24.4efunds and $24.4

million in rate rmillion in rate rmillion in rate rmillion in rate rmillion in rate reductions) foreductions) foreductions) foreductions) foreductions) for Missouri consum- Missouri consum- Missouri consum- Missouri consum- Missouri consum-

ers during fiscal year 2001.ers during fiscal year 2001.ers during fiscal year 2001.ers during fiscal year 2001.ers during fiscal year 2001.

The three pipelines delivering a majority of thestate’s natural gas are: Williams Gas Pipelines-Central (Williams), Mississippi River TransmissionCorporation (MRT), and Panhandle Eastern PipeLine Company (Panhandle). Williams serves west-ern Missouri, including the Kansas City, St. Joseph,Springfield and Joplin areas and has a small lateralterminating in St. Louis. MRT serves St. Louis andportions of southeast Missouri. Panhandle serves anumber of systems across the central part of thestate.

Kansas Kansas Kansas Kansas Kansas Ad Ad Ad Ad Ad VVVVValoraloraloraloralorem em em em em TTTTTax Refundsax Refundsax Refundsax Refundsax Refunds

Since 1989, the PSC has been aggressivelyseeking refunds of Kansas ad valorem taxes unlaw-fully collected from Williams and Panhandle con-sumers during 1988-1993. Of the estimated $75million in refunds owed to Missouri ratepayers,$20.5 million has been received - $13 millionduring 1994-1995, $7.3 million during 1998-1999,and $1.5 million during 2000-2001.

Settlements seeking final resolution of allKansas ad valorem tax refund issues were filed inthe Williams (RP98-52) and Panhandle (RP98-40)dockets in February and June 2001, respectively.In both cases, the PSC agreed with provisionssettling small-to-medium-sized refund obligations,but opted-out of settlement provisions granting25% waivers on producers’ large refund obliga-tions. If the PSC is unable to negotiate a lesser,more reasonable waiver with the large producers, itwill continue to litigate to obtain full refunds fromthese producers. The PSC is also pursuing certainunpaid refunds other parties have deemed uncol-lectible.

Mississippi RiverMississippi RiverMississippi RiverMississippi RiverMississippi River

TTTTTransmission Corporation (MRransmission Corporation (MRransmission Corporation (MRransmission Corporation (MRransmission Corporation (MRT)T)T)T)T)

MRT, in its 1999 annual fuel use and loss ratefiling, sought to recover from St. Louis and othereastern Missouri consumers, approximately 1.75Bcf of gas losses it incurred during the period ofNovember 1993 through June 1998. The PSCopposed the flow-through of these out-of-periodgas losses. In a May 31, 2001 order, FERC set thismatter for hearing, while also directing parties toparticipate in settlement discussions under theauspices of a FERC settlement judge.

In March 2001, MRT filed a case seeking a rateincrease (18% for Missouri customers), to becomeeffective October 1, 2001, subject to refund. ThePSC protested numerous aspects of the filing.FERC rejected several of MRT’s proposals pro-tested by the PSC, and set the remaining issues fora January 2002 hearing.

Negotiations in MRT’s fuel and rate casedockets (Docket Nos. TM00-1-25 and RP01-292,respectively) culminated in the filing of an uncon-tested settlement on November 5, 2001, which wasapproved by FERC on January 16, 2002. Regard-ing the fuel docket, the settlement requires custom-ers to make in-kind fuel reimbursements to MRTfor one-fourth of the claimed losses. In return,storage rates are being lowered and frozen (for fiveyears ending September 2006) and MRT will bearall costs associated with maintaining late seasonstorage deliverability.

Under the settlement customers will receivesmall rate decreases from October 2001 throughSeptember 2003, with further reductions in each ofthe three years commencing October 2003. Aconditional five year rate moratorium throughSeptember 2006 was obtained, as well as additionalprotection for retroactive refunds applicable tofuture MRT rate cases.

Kansas Pipeline Company (KPC)Kansas Pipeline Company (KPC)Kansas Pipeline Company (KPC)Kansas Pipeline Company (KPC)Kansas Pipeline Company (KPC)

A portion of the gas supply for Kansas City istransported over KPC. FERC allowed KPC (inDocket No. CP96-152) to begin charging FERCtransportation rates, which were significantly higher

29

ANNUAL REPORT 2002

than what the PSC believed to be reasonable. ThePSC obtained a favorable U.S. Court of Appealsdecision in its appeal of the initial FERC rate orders(Case No. 99-1203). However, the PSC believedFERC’s orders on remand were erroneous, andtherefore filed another appeal (Case No. 02-1132)on April 17, 2002. At issue is approximately $1.8million per year in rates paid by Missouri customerssince early 1998 through the date final rates inKPC’s subsequent rate case (Docket No. RP99-485) become effective.

KPC’s August 1999 rate filing in Docket No.RP99-485 sought to maintain or slightly increasethe initial rates FERC had approved in May 1998.During 2000, the PSC used six of its staff topresent expert testimony in this case seeking a $20million reduction to KPC’s annual cost-of-service.On September 10, 2002, FERC issued its orderupholding most of the hearing judge’s initial deci-sion and directing KPC to file tariff sheets within30 days implementing prospective rate reductionsbased on a $20.5 million cost-of-service rather thanthe $34.7 million requested by KPC. However, afinal FERC order in this proceeding isnot expected before the end of 2002.

WWWWWilliams Gas Pipelines-Centralilliams Gas Pipelines-Centralilliams Gas Pipelines-Centralilliams Gas Pipelines-Centralilliams Gas Pipelines-Central

(W(W(W(W(Williams)illiams)illiams)illiams)illiams)

The PSC actively participated inDocket No. R01-298, seeking to haveminimum delivery pressures defined inWilliams’ tariff, so as to protect cus-tomer service quality. The PSC’sconcerns were satisfactorily addressedin a July 30, 2001 Stipulation andAgreement, which was approved byFERC in late 2001.

In March 2002, Williams filedtariffs (Docket No. RP02-179) toimplement daily balancing and schedul-

ing penalties on its system by September 1, 2002.The PSC and other customers identified numerousdeficiencies and shortcomings in Williams’ proposaland actively participated in technical conferenceproceedings. On August 30, 2002, FERC rejectedWilliams’ proposed tariffs.

OtherOtherOtherOtherOther Pr Pr Pr Pr Proceedingsoceedingsoceedingsoceedingsoceedings

In February 2000, FERC issued Order No. 637amending its regulations, policies and proceduresto improve the competitiveness and efficiency ofnatural gas transportation markets. FERC hasnearly completed its review of all pipeline compli-ance filings or settlements implementing capacityrelease, right-of-first-refusal, penalty, and otheraspects of Order No. 637.

The PSC has been thoroughly analyzing pipe-line refund filings and fuel reimbursement requestsand expressing concerns about the lack of consis-tency in the documentation supporting thosefilings. It has been successful in obtaining correc-tive modifications to pipeline fuel waiver requests.

Warren Wood, Manager of the PSC Energy Department,conducts a roundtable meeting with Commissioners,PSC staff, electric utilities, and other interested partiesregarding proposed federal rulemaking.


30

TELECOMMUNICATELECOMMUNICATELECOMMUNICATELECOMMUNICATELECOMMUNICATIONSTIONSTIONSTIONSTIONS

Competition forCompetition forCompetition forCompetition forCompetition for Basic Local Basic Local Basic Local Basic Local Basic Local TTTTTelephone Serviceelephone Serviceelephone Serviceelephone Serviceelephone Service

Competition for local telephone service inMissouri continues to be most noticeable amongbusiness customers, and concentrated amongMissouri’s major metropolitan areas. Since theCommission first authorized local exchange tele-phone competition in 1997, a total of 85 compa-nies have been authorized by the Commission toprovide telecommunications service in competitionwith the traditional incumbent local exchangecarriers. As of July 2002, it is estimated thatcompetitors serve approximately 450,000 accesslines in Missouri, or approximately 13% ofMissouri’s approximately 3.4 million access lines.

Competitors provide local exchange telephoneservice a variety of ways including: (1) through theresale of the incumbent’s facilities (2) by usingportions of the incumbent’s network (called Net-work Elements) or (3) through the use of thecompetitor’s network.

Southwestern Bell’Southwestern Bell’Southwestern Bell’Southwestern Bell’Southwestern Bell’s s s s s Application to PrApplication to PrApplication to PrApplication to PrApplication to Provideovideovideovideovide

Interstate Long Distance Service in MissouriInterstate Long Distance Service in MissouriInterstate Long Distance Service in MissouriInterstate Long Distance Service in MissouriInterstate Long Distance Service in Missouri

Pursuant to federal guidelines and a recommen-dation by the PSC, Southwestern Bell TelephoneCompany (SWBT) received Federal Communica-tions Commission (FCC) approval to begin provid-ing interstate long distance telephone service to itsMissouri customers on December 10, 2001.SWBT’s approval to provide interstate longdistance telephone service came as a result of thepassage of the federal Telecommunications Act of1996.

As part of the process enabling SWBT toprovide interstate long distance, SWBT was firstrequired to open its local telecommunicationsmarket to competition. In order to ensure thatSWBT continues to keep its local telephonemarket open to competition, the PSC and the PSCstaff will regularly monitor the status of localtelephone competition. As part of the monitoringprocess, SWBT is required to adhere to certainperformance standards. These standards are usedto determine if SWBT is providing acceptable

levels of service quality for those services provided tocompetitive local exchange companies. If performancefalls below certain levels, SWBT may be required tosubmit financial payments to both the affected com-petitive telephone company and to the state of Mis-souri.

Rule RevisionsRule RevisionsRule RevisionsRule RevisionsRule Revisions

Missouri Universal Service Fund Missouri Universal Service Fund Missouri Universal Service Fund Missouri Universal Service Fund Missouri Universal Service Fund (4 CSR 240-31)(4 CSR 240-31)(4 CSR 240-31)(4 CSR 240-31)(4 CSR 240-31)In March 2002, the PSC established a universal

service fund to assist low-income and disabledconsumers in obtaining affordable essential tele-communications services. The PSC is modifyingcurrent Missouri Universal Service Fund rules toinclude guidelines for implementing and administer-ing the fund.

Service and Billing Practices forService and Billing Practices forService and Billing Practices forService and Billing Practices forService and Billing Practices for

TTTTTelecommunications Companies elecommunications Companies elecommunications Companies elecommunications Companies elecommunications Companies (4 CSR 240-33)(4 CSR 240-33)(4 CSR 240-33)(4 CSR 240-33)(4 CSR 240-33)The PSC is proposing revisions to this rule that

closely match the FCC’s Truth-in-Billing Rules.The proposed revisions should allow consumers tobetter understand their telecommunications bills,giving consumers the ability to control what type of

Mick Johnson of the PSC staff tests sometelephone equipment to ensure compliancewith PSC rules regarding quality of service.

31

ANNUAL REPORT 2002

617Interexchange

Companies

20Shared Tenant

Services Providers

328Private Payphone

Providers

152Competitive Local

Exchange Companies

44Local Telephone

Companies

1 2 3 91423

2525252525

32374344495051

calls are made from their telephone and allowingconsumers to have some control over what chargesare found on their bill.

The Telecommunications Staff has also beenworking on various proposed rulemakings tocodify existing procedures on such things as thefiling of interconnection agreements, currenttariffing requirements, customer notification re-quirements, filing requirements for competitivelocal exchange carriers and the inter-companyrecord exchange process for traffic transmittedbetween companies.

ConsumerConsumerConsumerConsumerConsumer Outr Outr Outr Outr Outreacheacheacheacheach

The PSC continues to update the “Show-Me-Rates” price comparison center web sitewwwwwwwwwwwwwww.psc.state.mo.us/teleco-showmerates.asp.psc.state.mo.us/teleco-showmerates.asp.psc.state.mo.us/teleco-showmerates.asp.psc.state.mo.us/teleco-showmerates.asp.psc.state.mo.us/teleco-showmerates.asp

Show-Me-Rates is an on-going project that in-cludes rates for local toll and in-state long distancecalls and provides contact information for variouscompetitive local telecommunications companiesthroughout the state.

The PSC web site also includes telecommunica-tions-specific information to keep the public andindustry informed. Topics such as telecommunica-tions rules and statutes, metropolitan calling area(MCA), telecommunications carriers’ quality ofservice workshop, LATA (Local Access TransportArea) maps and area code maps are all locatedunder the Telecommunications section of the web

page. This section of theweb page also containsvarious consumer publica-tions such as: understandingtelephone numbers, theMissouri No Call Law andtelemarketing.

FederalFederalFederalFederalFederal

TTTTTelecommunicationselecommunicationselecommunicationselecommunicationselecommunications

ActivityActivityActivityActivityActivity

The PSC continues toactively monitor federaltelecommunications activityat the FCC, other state

commissions and federal courts. During the past year,the FCC has addressed such issues as initiating atriennial review of unbundling requirements for tele-communications network elements, various broadbandissues and the release of proprietary customer infor-mation. The U.S. Supreme Court and the U.S. Courtof Appeals issued major telecommunications decisionsimpacting wholesale pricing and the sharing of networkcomponents between telecommunications carriers.The PSC filed comments in proceedings before theFCC on such issues as customer notice requirementsfor rate changes, cost recovery for deaf relay servicesprovided using the internet, performance measurementrequirements for incumbent local telecommunicationscarriers, and unbundling requirements for telecommu-nications network elements.

InterInterInterInterInterconnection connection connection connection connection AgrAgrAgrAgrAgreementseementseementseementseements

Interconnection Agreements are negotiated orarbitrated “contracts” between two telecommunica-tions carriers. The PSC conducted an arbitrationproceeding between Southwestern Bell TelephoneCompany and Brooks Fiber Communications ofMissouri, Inc., MCImetro Access TransmissionServices LLC, and MCI WorldCom Communications,Inc. This arbitration case addressed such issues asrates, terms and conditions for unbundled networkelements, network interconnection and architectureand operations support systems.

CerCerCerCerCertificated tificated tificated tificated tificated TTTTTelecommunications Prelecommunications Prelecommunications Prelecommunications Prelecommunications Providersovidersovidersovidersoviders


32

The PSC held hearings on several cases that wereestablished to determine Southwestern Bell’s rates,terms and conditions for DSL conditioning (thepreparation of telephone lines to allow advancedservices such as high-speed Internet access), linesharing/line splitting (the ability to “split” a consumer’stelephone line to allow voice service and advancedservices such as high-speed Internet access over thesame line) and unbundled network elements (thevarious components of Southwestern Bell’s telephonenetwork a competitive local exchange carrier pur-chases to provide telecommunications service toconsumers). Decisions were issued in the DSL condi-tioning and unbundled network elements cases withcompliance activity to be completed by the end of2002.

Relay MissouriRelay MissouriRelay MissouriRelay MissouriRelay Missouri

During 2002, some significant events haveimpacted Relay Missouri. First, the PSC allowedan Internet hyperlink (link) on its website whichallows users to transit to the Relay Missouriwebsite using a single click.

In addition, the FCC has agreed to fund, on aninterim basis, both Internet Relay, and Video Relayservices. Links to both of these services are acces-sible by following the link provided on the MissouriPublic Service Commission website.

Anyone with an Internet connection and abrowser can access Internet Relay. The serviceessentially works the same as a TTY-based call,except the caller does not need a TTY. In addition,the service provides split-screen capability, so thecaller can type ahead, and the caller does not haveto wait for the Communications Assistant (CA) tofirst stop typing.

The Missouri Video Relay Service (MoVRS)allows a caller to communicate with the CA viaAmerican Sign Language (ASL). Allowing a callerto communicate visually in his or her primarylanguage speeds and eases the use of communica-tions for both the caller and the called party. Theequipment required to make a MoVRS call in-cludes a video camera, an adequate computer, anda broadband Internet connection (i.e. DSL, T-1, orcable modem connection).

TTTTTelephone Numberselephone Numberselephone Numberselephone Numberselephone Numbers

The PSC has strived to improve how telephonenumbers are distributed in Missouri through variousnumber conservation efforts, including NumberPooling, Reclamation, and Sequential NumberAssignment. Through the use of Number Pooling,telephone numbers are distributed to telecommuni-cations carriers in blocks of 1,000 telephone num-bers rather than the past FCC practice of blocks of10,000 numbers. In January and February 2002,the Missouri PSC implemented number poolingtrials in the 314 and 816 area codes. Numberpooling began in the 573 area code in April 2002.The 660 and 636 area codes are scheduled to beginpooling later this year with pooling in the 417 areacode due to begin in 2003.

Telephone number reclamation is another wayto conserve telephone numbers. Number reclama-tion prevents a telecommunications carrier fromhoarding or stock-piling large blocks of telephonenumbers that may go unused for a significantperiod of time. Once telephone numbers arereturned, they are available for use by anothercompany.

Sequential number assignment establishesrequirements for telecommunications carriers indistributing telephone numbers. In general, se-quential number assignment requires telephonecompanies to assign telephone numbers within anexisting opened block of one thousand numbersbefore assigning telephone numbers from anotherblock of numbers.

Through the Missouri PSC’s telephone numberconservation efforts, the lives of Missouri areacodes have been extended. Current exhaust projec-tions for Missouri area codes are:

314 -314 -314 -314 -314 - 1st quarter of 2008816 -816 -816 -816 -816 - 1st quarter of 2008417 - 417 - 417 - 417 - 417 - 1st quarter of 2009573 -573 -573 -573 -573 - 1st quarter of 2010

636 -636 -636 -636 -636 - 4th quarter of 2017 660 -660 -660 -660 -660 - 3rd quarter of 2022

33

ANNUAL REPORT 2002

3636363636

433 451

600 580

389

050

100150200250300350400450500550600650

1998 1999 2000 2001 2002

Annual Number of New Telecommunications Cases Filed

The Telecommunications Department continues toinvestigate area code usage, reclaiming of unused tele-phone numbers, and implementation of telephone num-ber conservation.

Missouri Universal Service FundMissouri Universal Service FundMissouri Universal Service FundMissouri Universal Service FundMissouri Universal Service Fund

Effective March 31, 2002, the Missouri PublicService Commission approved the establishment ofa Missouri Universal Service Fund (MoUSF) tohelp low-income and disabled Missourians receivebasic local telephone service.

The establishment of the MoUSF is pursuantto state law passed by the Missouri General Assem-bly in 1996 (Senate Bill 507). The plan wouldresult in a fund of approximately $4.8 million,excluding any fund administration costs, whichwould provide support for a substantial number oflow-income and disabled Missouri residents.

The program will be funded through a Missouritelecommunications carrier assessment. The pur-pose of the MoUSF program is to implementassistance to low-income and disabled customersfor telecommunications services under the Lifelineand/or Link-up programs funded from the FederalUniversal Service Fund. One goal established bythe PSC was to fashion a state program so that thesupport amount provided to the low-income anddisabled customers is set at a level necessary togain the maximum Federal Universal Service Fundsupport for services to such customers. The PSC

established a state support of $3.50 per customer permonth which would provide the maximum in federalfunding.

The Federal Universal Service Fund and theMoUSF may offer a total discount to qualifyingcustomers of up to $13.00 per month on theirtelephone bill. Adoption of the Missouri USF low-income/disabled program will increase the level oftelephone penetration in households made up oflow-income and disabled consumers.

The Missouri Universal Service Fund is admin-istered by the Missouri Universal Service Boardcomprised of members of the PSC and the Office ofPublic Counsel, a separate state agency whichrepresents the general public in proceedings beforethe PSC. Currently, the Missouri Universal ServiceBoard is gathering information for a Request ForProposal to hire a Fund Administrator to work withthe Missouri Universal Service Board in adminis-tering the fund.

WWWWWiririririreless/Landline eless/Landline eless/Landline eless/Landline eless/Landline TTTTTrafrafrafrafrafficficficficfic

The Missouri PSC does not regulate wirelesstraffic (cell phone or paging services) when suchservices and facilities are provided under a licensegranted by the FCC. However, the PSC does havejurisdiction over interconnection arrangementsbetween local telephone companies and wirelesscarriers. The federal Telecommunications Act of1996 authorizes interconnection agreements be-tween telecommunications carriers (wireless,

landline) exchanging traffic.These interconnection agree-ments are negotiated orarbitrated “contracts” betweentwo telecommunication carriersand are submitted to thePSCfor approval.

In order for traffic to flowin both directions, the MissouriPSC approved over 30“wireless termination tariffs”establishing the terms andconditions for service in asituation where wirelesscarriers are sending traffic toeach others’ customers in the


34

Commissioner Bryan Forbis (left)examines a fiber switching hubwith Keith Jaegers, an engineerwith Sprint.

absence of an interconnectionagreement between the twoparties.

Multi-YMulti-YMulti-YMulti-YMulti-Yearearearearear TTTTTermermermermerm

CommitmentsCommitmentsCommitmentsCommitmentsCommitments

In fiscal year 2002, thePSC was confronted withnew challenges to the com-petitive telecommunicationsmarketplace in Missouri. InCase Nos. TT-2001-108 andTT-2002-227, the PSC waspresented with many tele-communications companyproposals for multi-yearterm-contracts which offeredcustomers discounts forbasic telecommunicationsservices.

The PSC determined that the fundamental issues inthese cases dealt with the dichotomy between indi-vidual interest and social interests. The PSC, out of aconcern that competitive local exchange carriers beable to find and market their services to new custom-ers, in the interest of fairness to all local exchangeproviders, and out of a desire to maximize the numberof provider-choices a telecommunications consumer inMissouri may enjoy, decided to limit the period alllocal telecommunications services providers maycontract for basic services with a given customer to amaximum of one year.

MetrMetrMetrMetrMetropolitan Calling opolitan Calling opolitan Calling opolitan Calling opolitan Calling ArArArArArea Serviceea Serviceea Serviceea Serviceea Service

The Commission continued its investigationinto the Metropolitan Calling Area (MCA) planduring the past year. MCA is a service allowingexpanded local calling in the Kansas City, Spring-field, and St. Louis areas. In January 2002, theMCA Industry Task Force filed its Final StatusReport making a number of recommendations forCommission consideration.

The task force is comprised of the PSC staff,the Office of Public Counsel, and representatives ofnew competitive and traditional incumbent local

telephone companies in Mis-souri.

In order to allow discussionand exploration of the industrytask force recommendations, anon-the-record presentation wasconducted on July 15, 2002.

Switched AccessSwitched AccessSwitched AccessSwitched AccessSwitched Access

Cost InvestigationCost InvestigationCost InvestigationCost InvestigationCost Investigation

The PSC established aninvestigative docket to identifythe costs of providing intrastateswitched access service inMissouri. Switched accessservice refers to service pro-vided by local telephonecompanies to long distancecompanies for the use of thelocal telephone company’s

facilities in originating and terminating long distancecalls. Switched access rates can ultimately impactlong distance rates charged by long distance compa-nies. The Telecommunications Department Staff andseveral telecommunications carriers provided theCommission with various studies outlining the cost ofproviding switched access service.

Sale of Sale of Sale of Sale of Sale of VVVVVerizon exchangeserizon exchangeserizon exchangeserizon exchangeserizon exchanges

On May 31, 2002, the PSC issued an orderauthorizing the transfer of GTE Midwest, Inc.d/b/a Verizon’s 96 Missouri exchanges toCenturyTel of Missouri, LLC. According to theagreement approved by the Commission,“CenturyTel proposes no immediate change in thefield operations of the Verizon properties andproposes to retain all of Verizon’s existing employ-ees. Moreover, CenturyTel proposes no immediatechanges in rates, terms and conditions of thetelecommunications service currently provided tothe customers in the former Verizon exchanges.”Verizon customers became CenturyTel customerson September 1, 2002.

35

ANNUAL REPORT 2002

3838383838

Department PersonnelDepartment PersonnelDepartment PersonnelDepartment PersonnelDepartment PersonnelThe Water & Sewer Department consists

of seven professional/technical positions andis split into two sections, Rates and Engi-neering. Although the Department is splitinto the Rates and Engineering Sections,staff members work closely together as ateam and it is not unusual for them to shareresponsibilities.

As with most departments within theCommission’s organizational structure, theDepartment’s management personnel carryout not only their administrative duties, butare also involved in a great deal of thetechnical and analytical case work that fallswithin the scope of the Department’s responsibili-ties. As a group, the Department’s staff membershave compiled more than 150 years of regulatoryand/or water and sewer utility work experience,with much of that experience having been gainedby their work in the Department.

Department ResponsibilitiesDepartment ResponsibilitiesDepartment ResponsibilitiesDepartment ResponsibilitiesDepartment ResponsibilitiesBy law, the PSC is responsible for regulating

the rates, fees and operating practices of privatelyowned water and sewer corporations that operatein Missouri. The Water & Sewer Department helpsthe Commission fulfill its responsibilities by provid-ing technical expertise to the Commission onmatters relating to water and sewer system opera-tions and the tariffed rates, charges and services ofregulated water and sewer companies. The generalobjectives of the Department are twofold. The firstobjective is to ensure that regulated water andsewer companies provide safe and adequate serviceto their customers at rates that are deemed just andreasonable. The second objective is to ensure thatcompanies provide service according to applicableCommission rules and procedures and the provi-sions of their Commission-approved tariffs. Spe-cific aspects of the Department’s work include:

-- Evaluating company tariff filings to determine

WWWWWateraterateraterater & Sewer & Sewer & Sewer & Sewer & Sewer Depar Depar Depar Depar Departmenttmenttmenttmenttment

whether proposed new/revised tariff provisions com-ply with applicable Commission rules, policies andstate laws;

-- Reviewing existing company tariffs to determinewhether the provisions of the tariffs continue to com-ply with applicable Commission rules, policies andstate laws, as they change over time;

-- Participating in all formal and informal rate filingsfrom the perspective of evaluating the appropriate-ness and design of proposed rates and charges, theadequacy of system operations and the appropriate-ness of and/or need for system plant additions thathave been or will be placed in service;

-- Participating in the review of all applications fornew/expanded certificated service areas from the per-spective of evaluating the need for the service pro-posed, the reasonableness and design of proposedrates and charges, proposed system design, plans forsystem operations and overall project feasibility;

-- Participating in the review of financing applica-tions to determine the appropriateness of and/or needfor projects being financed, as necessary;

PSC Staff engineer Martin Hummel (left) and Missouri-American Water Company Production Manager SteveRidenhour discuss the water treatment processes of acompany water plant chemical room.


36

Interaction Interaction Interaction Interaction Interaction WWWWWith ith ith ith ith TheTheTheTheThe

DeparDeparDeparDeparDepartment Of Natural Resourtment Of Natural Resourtment Of Natural Resourtment Of Natural Resourtment Of Natural Resourcescescescesces Of the utilities regulated by the Commission, waterand sewer utilities are unique in that another stateagency, the Department of Natural Resources (DNR),also has significant jurisdiction over the utilities.Specifically, DNR’s jurisdiction covers the area ofthe water and sewer utilities’ compliance with appli-cable federal and state environmental and water qual-ity laws and regulations. While the Commission’srules provide for general oversight regard-ing water quality and sewage treatmentstandards, the Commission generally re-lies upon DNR to determine whether com-panies are complying with applicable fed-eral and state environmental and waterquality laws and regulations. Because of the overlapping jurisdic-tion between the Commission and DNR,staffs of the agencies attempt to work co-operatively in achieving the agencies’ re-spective missions. For some time, the twoagencies have shared information regard-ing companies for which the agenciesshare regulatory responsibilities, underthe provisions of a Memorandum of Un-derstanding (MOU) between the agen-cies. However, the Commission and theDNR’s Director recently pressed for im-

provements in the agencies’ cooperation and coordi-nation on overlapping matters, such as the DNR’sissuance of construction and operating permits andthe Commission’s utility service area certification pro-cess. As a result, the agencies executed a new MOUin July 2001, which, among other things, includesprovisions that will result in the streamlining of theapplication processes for new water system construc-tion, permitting and certification, and which will bet-ter coordinate the agencies’ respective review andapproval processes for such systems. It is anticipatedthat such efforts will eventually extend to the permit-ting and certification of all water and wastewater sys-tems for which the agencies share jurisdiction.

PSC RegulatedPSC RegulatedPSC RegulatedPSC RegulatedPSC Regulated

WWWWWateraterateraterater & Sewer & Sewer & Sewer & Sewer & Sewer Companies Companies Companies Companies Companies

The Commission currently has jurisdiction over58 sewer companies and 69 water companies,which operate in various locations throughout thestate. The tables on the following page show thedistribution of the number of companies basedupon the number of customers served, using themost recently available customer numbers. As isshown in these tables, the vast majority of theCommission’s jurisdictional water and sewerutilities are very small, which presents uniquesituations with which the Commission and the PSCStaff must deal.

Piping in the high service pump room of Missouri-American Water Company’s St. Joseph treatment plant.

-- Conducting regularly scheduled field inspectionsto determine whether company facilities and overallsystem operations comply with applicable Commis-sion rules, company tariff provisions and properoperational procedures;

-- Interacting with company owners/operatorsregarding operational and technical matters;

-- Investigating customer complaints and respond-ing to customer inquiries concerning mattersrelated to rates, charges, system operations andquality of service; and

-- Providing expert testimony before the Commis-sion on water and sewer cases pending before it,and providing technical advice to the Commissionin its rulemaking actions on water and sewermatters.

37

ANNUAL REPORT 2002

Regulated Regulated Regulated Regulated Regulated WWWWWateraterateraterater Companies Companies Companies Companies Companies

Customer BaseCustomer BaseCustomer BaseCustomer BaseCustomer Base Number ofNumber ofNumber ofNumber ofNumber of Customers Customers Customers Customers Customers % of % of % of % of % of TTTTTotalotalotalotalotal

CompaniesCompaniesCompaniesCompaniesCompanies Served Customers ServedServed Customers ServedServed Customers ServedServed Customers ServedServed Customers Served

100,000 & Up* 1 413,580 92.935,000 – 9,999 1 6,770 1.522,500 – 4,999 1 4,515 1.011,500 – 2,499 2 4,735 1.06750 – 1,499 5 5,105 1.15500 – 749 4 2,600 0.58250 – 499 9 2,970 0.67150 – 249 14 2,610 0.59100 – 149 9 1,080 0.2450 – 99 13 880 0.200 – 49 10 215 0.05

TTTTTOTOTOTOTOTALSALSALSALSALS 6969696969 445,060 445,060 445,060 445,060 445,060 100 100 100 100 100

Regulated Sewer CompaniesRegulated Sewer CompaniesRegulated Sewer CompaniesRegulated Sewer CompaniesRegulated Sewer Companies

Customer BaseCustomer BaseCustomer BaseCustomer BaseCustomer Base Number ofNumber ofNumber ofNumber ofNumber of CustomersCustomersCustomersCustomersCustomers % of % of % of % of % of TTTTTotalotalotalotalotal

CompaniesCompaniesCompaniesCompaniesCompanies Served Customers Served Served Customers Served Served Customers Served Served Customers Served Served Customers Served

1,000 & Up 2 2,565 22.10500 - 999 3 2,185 18.83200 - 499 11 3,340 28.78100 - 199 16 2,375 20.4750 - 99 12 810 6.980 - 49 14 330 2.84

TTTTTOTOTOTOTOTALSALSALSALSALS 5858585858 1 1 1 1 11,6051,6051,6051,6051,605 100.0100.0100.0100.0100.0

* Merged company consisting of Missouri-American Water Company, St. Louis County WaterCompany and Jefferson City Water Works Company.

NOTE: Tables compiled 9/25/02 based on most recently available information. Customersrounded to the nearest “five.”

NOTE: Tables compiled 9/25/02 based on most recently available information. Customersrounded to the nearest “five.”

38


4141414141

MANUFMANUFMANUFMANUFMANUFACTUREDACTUREDACTUREDACTUREDACTURED

HOUSING HOUSING HOUSING HOUSING HOUSING ANDANDANDANDAND

MODULAR UNITMODULAR UNITMODULAR UNITMODULAR UNITMODULAR UNIT

PROGRAMPROGRAMPROGRAMPROGRAMPROGRAMThe PSC regulates new manufactured

homes and modular units sold in the state.Through the Manufactured Housing andModular Units Program (Program), the PSCacts as the state administrative agency to theUnited States Department of Housing andUrban Development (HUD). HUD is thefederal agency that regulates the manufac-tured housing industry in the United States.

The PSC has a toll-free hotline for con-sumers who have questions and/or complaintsregarding manufactured homes or modularunits. The toll-free number is 1-800-819-1-800-819-1-800-819-1-800-819-1-800-819-

3180.3180.3180.3180.3180.

The Program continues to experience anegative impact involving economic trendswithin the manufactured housing industry.Due to a thriving industry during the pastdecade, the industry overproduced andobtained large volumes of inventory. Manymanufacturers and dealers suffered when homesales dropped dramatically after the industry’sinterest rates increased, which shifted sales to arepossession sales oriented situation. Subsequently,manufacturers and dealers were left with largeinventories, and some have gone out of business.This impact has decreased the number of manufac-turer and dealer registrations the Program adminis-ters.

The PSC Manufactured Housing Departmentwill be working with other entities in the futureregarding the implementation of new federalmandates which must be placed into effect byDecember 2005. These new mandates include:licensing of all home installers, inspections of newhomes and dispute resolution.

ANNUALANNUALANNUALANNUALANNUAL ST ST ST ST STAAAAATISTICS FORTISTICS FORTISTICS FORTISTICS FORTISTICS FOR

FISCALFISCALFISCALFISCALFISCAL YEAR 2002YEAR 2002YEAR 2002YEAR 2002YEAR 2002

RegisterRegisterRegisterRegisterRegistered Manufactured Manufactured Manufactured Manufactured Manufacturers:ers:ers:ers:ers: 176176176176176

RegisterRegisterRegisterRegisterRegistered Dealers:ed Dealers:ed Dealers:ed Dealers:ed Dealers: 330330330330330

Homes Sold (new & used):Homes Sold (new & used):Homes Sold (new & used):Homes Sold (new & used):Homes Sold (new & used): 7,5677,5677,5677,5677,567

Consumer Complaint Inspections: Consumer Complaint Inspections: Consumer Complaint Inspections: Consumer Complaint Inspections: Consumer Complaint Inspections: 164164164164164

Dealer Lots Inspected: Dealer Lots Inspected: Dealer Lots Inspected: Dealer Lots Inspected: Dealer Lots Inspected: 306306306306306

Modular Unit Seals Issued:Modular Unit Seals Issued:Modular Unit Seals Issued:Modular Unit Seals Issued:Modular Unit Seals Issued: 1,5941,5941,5941,5941,594

ModularModularModularModularModular Unit Plans Unit Plans Unit Plans Unit Plans Unit Plans ApprApprApprApprApproved: oved: oved: oved: oved: 731731731731731

Gene Winn, Manufactured Housing Inspector/Supervisor, inspects the siding installation on anew manufactured home.

Source: PSC Manufactured Housing Department database

39

ANNUAL REPORT 2002

tions to company management that addressed arange of areas including workforce configuration,communication and call center performance.

During this fiscal year, the Staff also performedfollow-up activities in a review of Aquila’s gasprocurement processes as well as participated inthe company’s rate case regarding the company’scall center performance. The EMSD Staff alsoparticipated in a PSC Staff earnings complaint caseagainst AmerenUE, performing analysis and filingtestimony regarding the company’s quality ofservice.

EMSD Staff continued to receive and reviewstatus reports from a variety of companies as a

result of merger cases.These reports containinformation regardingcustomer service atthe companies includ-ing data on call centerindicators such asaverage speed ofanswer (ASA) andabandoned call rate(ACR). Informationon distribution reli-ability at specificelectric companies isalso received.

EMSD Staff continued graphing and analyzingcompany complaint data received from the PSCConsumer Services Department. This data ismaintained to track performance trends in the areasof consumer complaints to the Commission.

The department participated in PSC Staffreviews of several small water and sewer compa-nies to assist them in providing sound customerservice. The audit program is designed to assistsuch companies in a variety of areas includingcustomer billing, credit and collections, complainthandling and others.

During fiscal 2002, Engineering Staff compileddepreciation studies and reports on seven watercompanies, six sewer companies, three telephonecompanies, four electric companies and one gascompany. Five of these depreciation studies weremajor rate or PSC staff complaint cases. In these

SERSERSERSERSERVICE QUALITYVICE QUALITYVICE QUALITYVICE QUALITYVICE QUALITYEngineering and ManagementEngineering and ManagementEngineering and ManagementEngineering and ManagementEngineering and Management

Services DepartmentServices DepartmentServices DepartmentServices DepartmentServices Department

The Engineering and Management ServicesDepartment’s (EMSD, Staff or Department)mission is to develop, enhance and support utilitymanagement to provide quality services to custom-ers and effective cost control of critical resourcessuch as capital, technology and human resources.The Engineering Staff of EMSD conducts depre-ciation studies and provides specialized engineeringanalysis and assistance for all types of regulatedutilities.

MajorMajorMajorMajorMajor Pr Pr Pr Pr Projectsojectsojectsojectsojects

During 2002During 2002During 2002During 2002During 2002

The EMSD staff partici-pated in a variety of casesand audits during the year.Specifically, Staff initiatedand completed a customerservice and gas supplyreview of Atmos EnergyCorporation. Atmos servesapproximately 65,000Missouri customers. TheEMSD department traveledto company headquarters inDallas, Texas and other locations to review thecompany’s call center and credit and collectionactivities, meter reading, disconnect and reconnectactivities, gas procurement processes and others.Staff’s report resulted in 27 recommendationsmade to company management for improvement.Subsequent to receiving Staff’s report, the com-pany submitted its implementation plan.

The EMSD Staff participated on a multi-disciplined team to review electric company re-sponses to the severe ice storm that occurred inMissouri during January 2002. Staff met with cityemployees and utility operational and managementemployees from KCPL, Aquila and AmerenUE toreview each company’s response to the ice stormincluding company policies and procedures. Areport was developed that included recommenda-

Depreciation Engineers Rosella Schad andJolie Mathis prepare for a hearing withDeputy General Counsel Tim Schwarz.


40

five large cases, engineers developed proposals thatwould allow for an approximate $130 millionreduction in the positions requested by utilities.Depreciation comprises a significant component ofthe cost used to develop utility rates paid by con-sumers.

Depreciation engineers made company visitsand participated in plant tours to further developtheir knowledge and understanding of eachcompany’s tangible plant. This knowledge,coupled with statistical analysis of plant mortalitydata, serves as the basis of the PSC Staff’s work ineach rate case. These “depreciation studies” arethe support for Staff’s depreciation rates in eachcase.

The engineering staff also organized a two-daytechnical telecommunications training seminar. Bybringing in telecommunications experts, the indus-try, the PSC Staff, rural economic developmentdirectors, legislators and educational institutions,the PSC provided a forum where information couldbe shared on present, as well as future technology.The cross-section of attendees, from communityofficials to educators, was indicative of the impactthat telecommunications technology makes onMissourians. The first live interactive broadcast ofa Missouri PSC event brought the seminar tomultiple points across the state.

Consumer ServicesConsumer ServicesConsumer ServicesConsumer ServicesConsumer Services

The Consumer Services Department serves asthe central repository for consumer complaints andinquiries received by the Commission.

Consumer complaints may be filed with theCommission by mail, facsimile, e-mail or theCommission’s consumer toll-free hotline. Com-plaints may also be submitted on-line through theCommission’s website. Consumer Services Spe-cialists receive, investigate and respond to billingand service issues involving gas, electric, water,sewer, and telecommunications companies regu-lated by the Commission. The investigation ofcomplaints may involve consulting with theCommission’s technical Staff, utility representa-tives and researching utility tariffs and Commissionrules and regulations. Through the handling ofconsumer complaints, Specialists work to enforce

Commission rules and utility tariffs.Specialists also interact with other PSC Staff

regarding consumer service issues in proposedrulemakings on the state and federal level. Thisinteraction also involves participating in customerservice focused reviews of utility operations andparticipating in formal cases before the Commis-sion regarding issues that impact customer services.

Consumer Service specialists also interact withsocial service agencies by referring consumers toother agencies that may provide the needed assis-tance. During the past year, Specialists participatedin the Emergency Amendment to the Cold WeatherRule, as well as several variance and formal com-plaint cases before the Commission.

In mid April 2002, the Commission convertedfrom the mainframe complaint/inquiry system to theConsumer Quality portion of the Electronic Filingand Information System (EFIS). This electronicsystem replaced the mainframe complaint/inquirysystem that Specialists had used since the 1970s.This has enhanced the PSC Staff’s capabilities tocommunicate electronically, attach files, measurehandling times and receive, record and track bothpublic comments and outage reports which may besubmitted electronically. Future enhancements willinclude the activation of a consumer survey toenable the PSC to measure the level of satisfactionconsumers experience in contacting Commissionoffices.

Consumer Services Department ManagerJanet Hoerschgen answers utility questionson the department’s toll-free hotline.

41

ANNUAL REPORT 2002

4444444444

MISSOURI PUBLIC SERVICE COMMISSIONORGANIZATIONAL CHART

COMMISSIONERSheila Lumpe

COMMISSIONERConnie Murray

CHAIRMANKelvin Simmons

COMMISSIONERSteve Gaw

COMMISSIONERBrian Forbis

SECRETARY/

CHIEF REGULATORY

LAW JUDGE

Dale Hardy Roberts

GENERAL COUNSEL

Dan Joyce

EXECUTIVEDIRECTORRobert Quinn

Legislative

Coordinator

Public Info. &

Education

Support

Services

Support

Services

Legal CounselData CenterRegulatory Law

Judges

ADMINISTRATIVE

DIVISION

Donna M. Prenger

Director

UTILITY OPERATIONS

DIVISION

Wess Henderson

Director

UTILITY SERVICES

DIVISION

Bob Schallenberg

Director

Support

Services

Accounting

Engineering &Management

Services

Financial

Analysis

Procurement

Analysis

Support

Services

Energy

ManufacturedHousing

Telecommuni-cations

Water & Sewer

EconomicAnalysis

EngineeringAnalysis

Federal Issues/Policy Analysis

Federal/SpecialProjects

Safety/Engineering

Tariff/RateDesign

EconomicAnalysis

Rate & Tariff

Technical

Engineering

Tariff/RateDesign

ConsumerServices

HumanResources

InformationServices

InternalAccounting

IT ProjectManager

Staff Services


42

4545454545

20012001200120012001

July 2 --July 2 --July 2 --July 2 --July 2 -- PSC Staff files complaint againstAmerenUE seeking to reduce electric revenues inthe range of $213 million to $250 million a year.

July 5 --July 5 --July 5 --July 5 --July 5 -- PSC approves agreement which autho-rizes Missouri Gas Energy to increase natural gasrevenues by approximately $9.9 million. MGEsought to increase revenues by approximately$39.3 million when it filed its rate request onNovember 7, 2000.

July 9 -- July 9 -- July 9 -- July 9 -- July 9 -- Governor Bob Holden names KelvinSimmons Chairman of the Missouri Public ServiceCommission.

July 27 --July 27 --July 27 --July 27 --July 27 -- PSC and Missouri Depart-ment of Natural Resources enter into anew working agreement called a Memo-randum of Understanding.

July 31 --July 31 --July 31 --July 31 --July 31 -- PSC approves agreementwhich authorizes Kansas City Power &Light to reorganize and become one ofthree companies under Great PlainsEnergy, Incorporated.

August 2 --August 2 --August 2 --August 2 --August 2 -- Chairman Simmons calls forincreased funding for those who arestruggling with high utility bills.

August 14 --August 14 --August 14 --August 14 --August 14 -- PSC approves agreement autho-rizing Laclede Gas Company to restructure, mergeand form subsidiary companies.

August 24 --August 24 --August 24 --August 24 --August 24 -- Commission expresses its concernover the number of utility disconnects with coldweather approaching.

August 28 --August 28 --August 28 --August 28 --August 28 -- Natural Gas Commodity Price TaskForce issues final report.

August 29 --August 29 --August 29 --August 29 --August 29 -- PSC approves agreement whichreduces the annual telephone revenues of the OzarkTelephone Company by approximately $548,000.

YEAR IN REVIEWYEAR IN REVIEWYEAR IN REVIEWYEAR IN REVIEWYEAR IN REVIEW

September 3 --September 3 --September 3 --September 3 --September 3 -- PSC denies applications filed byvarious parties to either reconsider or open a newcase to evaluate Southwestern Bell’s desire to offerinterLATA long-distance service in Missouri.

September 12 --September 12 --September 12 --September 12 --September 12 -- Robert Quinn becomes newPSC Executive Director.

September 18 --September 18 --September 18 --September 18 --September 18 -- PSC approves application whichauthorizes the purchase of all of the issued andoutstanding capital stock of the Miller TelephoneCompany by TelAtlantic Communications, Incor-porated.

September 20 --September 20 --September 20 --September 20 --September 20 -- PSC issues decision authorizingThe Empire District Electric Company to increaseelectric revenues by approximately $17.1 million.When the Company filed its request on November3, 2000, it sought to increase annual electricrevenues by approximately $41.4 million.

SeptemberSeptemberSeptemberSeptemberSeptember 25 -- 25 -- 25 -- 25 -- 25 -- Commission delays, indefinitely,implementation of the 557 overlay in the 314 areacode in eastern Missouri and the 975 overlay in the816 area code in western Missouri. Commissionalso orders state pooling trials in 314 and 816 areacodes.

Formal hearings are held in the Commission’shearing room located on the 3rd floor of theGovernor Office Building in Jefferson City.

43


30

SeptemberSeptemberSeptemberSeptemberSeptember 26 -- 26 -- 26 -- 26 -- 26 -- PSC approves the merger of St.Louis County Water Company d/b/a Missouri-American Water Company and Jefferson City WaterWorks Company d/b/a Missouri-American WaterCompany into the Missouri-American WaterCompany.

OctoberOctoberOctoberOctoberOctober 2 -- 2 -- 2 -- 2 -- 2 -- PSC announces its Consumer Ser-vices Department saved Missouri consumers morethan $280,000 during the fiscal year ending June30, 2001.

October 9 --October 9 --October 9 --October 9 --October 9 -- PSC approves application authorizingGateway Pipeline Company, Incorporated toacquire the outstanding shares of UtiliCorp PipelineSystems.

October 21 -- October 21 -- October 21 -- October 21 -- October 21 -- Chairman Simmons testifies beforeState Joint Interim Committee on Telecommunica-tions and Technology regarding energy assistancefunding and disconnects-reconnects of natural gasservice heading into the winter.

October 27 -- October 27 -- October 27 -- October 27 -- October 27 -- PSC conducts a roundtable onproperly structured incentive plans for natural gascompanies under PSC jurisdiction.

October 30 -October 30 -October 30 -October 30 -October 30 -- - - - - PSC opens case to receive informa-tion from Missouri utilities regarding their pre-paredness for disaster and emergency situationsafter the terrorists attacks on September 11th.

November 1 --November 1 --November 1 --November 1 --November 1 -- Governor Bob Holden appointsBryan Forbis to the PSC.

November 1 --November 1 --November 1 --November 1 --November 1 -- Citizens Electric Corporation filesa $6.5 million electric rate case with the PSC. Thatfiling also seeks interim rate relief.

NovemberNovemberNovemberNovemberNovember 1 1 1 1 11 --1 --1 --1 --1 -- PSC orders emergency amend-ment to the Cold Weather Rule.

November 29 -- November 29 -- November 29 -- November 29 -- November 29 -- PSC approves agreement reachedin Laclede Gas Company natural gas rate casewhich results in an increase of approximately $15

million in annual revenues.When the Company filed its raterequest on May 18, 2001, itsought to increase natural gasrevenues by approximately$39.8 million.

NovemberNovemberNovemberNovemberNovember 29 -- 29 -- 29 -- 29 -- 29 -- The PSCdenies Citizens ElectricCorporation’s request forinterim rate relief of approxi-mately $6.5 million by Decem-ber 1, 2001.

December 17 -December 17 -December 17 -December 17 -December 17 -- PSC holdsroundtable on properly struc-tured incentive plans for electriccompanies.

December 20 --December 20 --December 20 --December 20 --December 20 -- PSC approvesagreement which authorizes an interim rate increaseof approximately $4.6 million for Citizens ElectricCorporation.

DecemberDecemberDecemberDecemberDecember 28 -- 28 -- 28 -- 28 -- 28 -- PSC determines that effectivecompetition does not currently exist in most South-western Bell Telephone Company exchanges inMissouri.

PSC PSC PSC PSC PSC YYYYYearearearearear in Review in Review in Review in Review in Review (continued) (continued) (continued) (continued) (continued)

PSC Utility Services Director Bob Schallenberg (second fromleft) participates in a panel discussion at a Utility and EnergyConference hosted by the Missouri Chamber of Commerce.

44


20022002200220022002

January 25 --January 25 --January 25 --January 25 --January 25 -- Laclede Gas Company files a $36million natural gas rate case with the PSC.

January 30 -January 30 -January 30 -January 30 -January 30 -- Severe ice storm hits westernMissouri including the Kansas City area. Nearly400,000 customers experience service disruptions.

FebruarFebruarFebruarFebruarFebruary 21 --y 21 --y 21 --y 21 --y 21 -- PSC authorizes merger betweenUtiliCorp United, Inc. and UtiliCorp RenamingCorporation, to effect a name change after thepurchase by UtiliCorp of stock in Aquila, Inc.

February 22 -- February 22 -- February 22 -- February 22 -- February 22 -- PSC approves agreement whichreduces the annual electric revenues of MissouriPublic Service by approximately $4.2 million.Whenthe Company filed its rate request on June 8, 2001,Missouri Public Service sought to increase electricrevenues by approximately $49.3 million a year.

MarMarMarMarMarch 8 --ch 8 --ch 8 --ch 8 --ch 8 -- The Empire District Electric Companyfiles a $19.7 million electric rate increase requestcase with the Public Service Commission.

MarMarMarMarMarch 14 --ch 14 --ch 14 --ch 14 --ch 14 -- PSC urges Missouri telephone cus-

tomers to evaluate whether they want the informa-tion contained in their monthly telephone bills tobe given to another party (Opt-Out).

MarMarMarMarMarch 21 --ch 21 --ch 21 --ch 21 --ch 21 -- PSC establishes Missouri UniversalService Fund to help low-income and disabledMissourians receive basic local telephone service.

MarMarMarMarMarch 26 --ch 26 --ch 26 --ch 26 --ch 26 -- PSC approves the merger of theMississippi Valley Gas Company with and into theAtmos Energy Corporation.

MarMarMarMarMarch 27 --ch 27 --ch 27 --ch 27 --ch 27 -- PSC opens case to examine issuesrelated to natural gas companies and their pur-chased gas adjustment clauses in Missouri.

April 28 --April 28 --April 28 --April 28 --April 28 -- PSC issues consumer notice thatnatural gas prices for the 2002-2003 heatingseason may be higher than last winter.

May 9 --May 9 --May 9 --May 9 --May 9 -- PSC denies $3.56 million interim rateincrease request sought by The Empire DistrictElectric Company.

May 21 --May 21 --May 21 --May 21 --May 21 -- PSC approves sale of 96 Missouritelephone exchanges of GTE Midwest, Incorpo-rated d/b/a Verizon Midwest to CenturyTel ofMissouri, LLC.

June 3 --June 3 --June 3 --June 3 --June 3 -- PSC approves agreement reducing TheEmpire District Electric Company interim energycharge by approximately $7 million.

June 10 --June 10 --June 10 --June 10 --June 10 -- PSC approves the sale of Quail RunWater & Land Company water system to thePublic Funding Corporation of the City of Ozark.

June 15 --June 15 --June 15 --June 15 --June 15 -- PSC Staff issues Kansas City ice stormreport.

June 18 --June 18 --June 18 --June 18 --June 18 -- PSC approves agreement which autho-rizes the Citizens Electric Corporation to increaseelectric revenues by approximately $6.2 million.This amount includes an interim increase of ap-proximately $4.6 million granted to the Companyin December 2001.

The above display teaches students electricalsafety and is part of an educational programadministered by the Public Information andEducation Department.

45

ANNUAL REPORT 2002

RARARARARATE CASE DECISIONSTE CASE DECISIONSTE CASE DECISIONSTE CASE DECISIONSTE CASE DECISIONS

DURING FISCALDURING FISCALDURING FISCALDURING FISCALDURING FISCAL YEAR 2002YEAR 2002YEAR 2002YEAR 2002YEAR 2002

NANANANANATURALTURALTURALTURALTURAL GAS GAS GAS GAS GASDate of Order Case No. Company Rate Request PSC Decision

7/5/01 GR-2001-292 Missouri Gas Energy $39,300,000 $9,892,228

11/29/01 GR-2001-629 Laclede Gas Co. $39,800,000 $15,000,000 & GT-2001-662

TELEPHONETELEPHONETELEPHONETELEPHONETELEPHONEDate of Order Case No. Company Rate Request PSC Decision

8/30/01 TC-2001-402 Ozark Telephone Co. -0- ($ 548,000) & TT-2001-117

ELECTRICELECTRICELECTRICELECTRICELECTRICDate of Order Case No. Company Rate Request PSC Decision

9/20/01 ER-2001-299 Empire District Electric Co. $41,400,000 $17,100,000 (1)

12/20/01 ER-2002-217 Citizens Electric Corporation $6,500,000 $ 4,600,000 (2)

2/21/02 ER-2001-672 Missouri Public Service $49,300,000 ($ 4,200,000)

5/9/02 ER-2002-425 Empire District Electric Co. $3,560,000 -0- (3)

6/4/02 ER-2002-1074 Empire District Electric Co. -0- ($ 7,000,000) (4)

6/18/02 ER-2002-217 Citizens Electric Corporation $ 6,500,000 $ 6,200,000 (5)

Statistical InformationStatistical InformationStatistical InformationStatistical InformationStatistical Information

(1) Commission also approved an agreement which authorized an interim energy charge totaling approximately $19.6million. The interim energy charge was to be in effect from October 1, 2001 through October 1, 2003.

(2) Interim rate relief authorized under an agreement reached in this case.

(3) Interim rate relief sought.

(4) Agreement reached in this case reduces interim energy charge.

(5) This figure includes interim rate relief of approximately $4,600,000 granted in December 2001.


46

WWWWWAAAAATER & SEWERTER & SEWERTER & SEWERTER & SEWERTER & SEWER

Small Company Rate IncrSmall Company Rate IncrSmall Company Rate IncrSmall Company Rate IncrSmall Company Rate Increase Requests (Resolved and/orease Requests (Resolved and/orease Requests (Resolved and/orease Requests (Resolved and/orease Requests (Resolved and/or Submitted) Submitted) Submitted) Submitted) Submitted)

Tracking Number Company Status of Request Increase Granted2001 00917 Gladlo Water & Sewer Company (water) No Increase Granted N/A

2001 00918 Gladlo Water & Sewer Company (sewer) No Increase Granted N/A

2001 00966 The Meadows Water Company (water) Request Pending N/A

2001 01195 (WR-2002-371) Argyle Estates Water Supply Increase Effective -- 03/22/02 $5,435

2001 01207 South Jefferson County Utilities (water) No Increase Granted N/A

2001 01208 (SR-2002-350) South Jefferson County Utilities (sewer) Increase Effective -- 03/04/02 $7,080

2002 00019 Warren County Water & Sewer Co. (water) No Increase Granted N/A

2002 00020 Warren County Water & Sewer Co. (sewer) No Increase Granted N/A

2002 00223 Taney County Utilities Corporation (water) Request Withdrawn N/A

2002 00224 Taney County Utilities Corporation (sewer) Request Withdrawn N/A

2002 00225 Valley Woods Water Company (water) No Increase Granted N/A

2002 00226 (SR-2002-475) Valley Woods Water Company (sewer) Increase Effective -- 05/21/02 $1,000

2002 00556 (SR-2002-1163) Foxfire Utility Company (sewer) Pending N/A

2002 00557 (WR- 2002-1162) Foxfire Utility Company (water) Pending N/A

2002 00623 Stoddard County Sewer Company Pending N/A

2002 00682 Mill Creek Sewers, Inc. Pending N/A

QS-2002-0006 Savannah Heights Industrial Treatment Request Withdrawn N/A

QW-2002-0007 The Empire District Electric Company Pending N/A

QW-2002-0009 Rogue Creek Utilities Pending N/A

QS-2002-0010 Rogue Creek Utilities Pending N/A

(1) The first block of numbers (2001 or 2002) in the “Tracking Number” column reflects the fiscal year in which therate increase request was originally submitted to the Commission.

(2) EFIS Tracking Numbers used in lieu of tariff tracking number effective 04/17/02.QW - small water company request QS - small sewer company request

(3) An entry of “Pending” indicates that a final disposition of the rate increase request had not been reached as of June30, 2002.

(4) Dollar amounts in “Increase” column rounded to the nearest “five.”

(5) N/A - “Not Applicable”47

ANNUAL REPORT 2002

50

Telephone StatisticsCompany Access LinesSouthwestern Bell Telephone Co. 2,525,663CenturyTel of Missouri, LLC 352,516Sprint Missouri, Inc. d/b/a Sprint 275,182Spectra Communications, LLC d/b/a CenturyTel 130,635ALLTEL Missouri Service Corp. 68,856Fidelity Telephone Co. 17,310Grand River Mutual Telephone Corp. 15,547Chariton Valley Telephone Corp. 8,692Cass County Telephone Co. 8,032Kingdom Telephone Co. 5,633Steelville Telephone Exchange, Inc. 4,878Northeast Missouri Rural Telephone Co. 4,730Mark Twain Rural Telephone Co. 4,666Citizens Telephone Co. 4,439Modern Telecommunications Co. 4,348Mid-Missouri Telephone Co. 4,199Green Hills Telephone Corp. 3,943McDonald County Telephone 3,913BPS Telephone Co. 3,890Seneca Telephone Co. 3,382Granby Telephone Co. 2,824Craw-Kan Telephone Cooperative, Inc. 2,646Ozark Telephone Co. 2,481Ellington Telephone Co. 2,236Goodman Telephone Co. 1,938Rock Port Telephone Co. 1,909KLM Telephone Co. 1,683Lathrop Telephone Co. 1,602Stoutland Telephone Co. 1,583Le-Ru Telephone Co. 1,555Oregon Farmers Mutual Telephone Co. 1,364Iamo Telephone Co. 1,242Miller Telephone Co. 1,137New London Telephone Co. 1,026CenturyTel NW Arkansas, LLC 969Mo-Kan Dial, Inc. 835Orchard Farm Telephone Co. 831Choctaw Telephone Co. 646Holway Telephone Co. 563New Florence Telephone Co. 545Peace Valley Telephone Co. 512Alma Telephone Co. 385Farber Telephone Co. 241Iowa Telecommunication Services, Inc., d/b/a Iowa Telecom 105

3,485,757Source: Access Line counts from 2001 Annual Reports


48

OperatingIntrastate Pipelines Mcfs Delivered Revenues ($) Transportation Customers

Missouri Gas Co. (8) 1,762,065 2,249,457 16Missouri Pipeline Co. (8) 11,394,029 5,132,992 19

Totals: 13,156,094 $ 7,382,449 35

(1) Union Electric Co. d/b/a AmerenUE Gas Districts

(2) Associated Natural Gas Co. Missouri Properties purchased by Atmos Energy Corp. effective June 1, 2000

(3) United Cities and Greeley, a division of Atmos Energy Corp.

(4) A division of Southern Union Co.

(5) A division of UtiliCorp United, Inc.

(6) Southern Missouri Gas Co., L.C., Tartan Energy Co.,L.C.

(7) A division of UtiliCorp United Inc., effective December 30, 2000

(8) A division of UtiliCorp Pipeline Systems, Inc.

Natural Gas Utilities StatisticsCalendar Year 2001 (Missouri Jurisdictional)

Operating TotalName of Company Mcfs Sold 2001 Revenues ($) Residential Customers Customers

AmerenUE (1) 11,211,501 $ 108,414,364 99,035 111,055Atmos Energy Corp. (2) 4,509,200 50,592,748 40,470 46,256 (Associated)Atmos Energy Corp. (3) 6,809,304 69,010,735 56,979 64,958 (UC/Greeley)Fidelity Natural Gas, Inc. 216,417 697,417 1,051 1,211Laclede Gas Company 87,467,137 872,894,433 595,271 635,443Missouri Gas Energy (4) 54,744,792 580,137,587 436,855 499,782Missouri Public Service (5) 4,740,944 50,024,876 40,841 46,234Southern Missouri Gas Co., L.C.(6) 775,374 9,011,117 6,538 7,227St. Joseph Light & Power Co. (7) 776,386 6,355,392 5,367 6,214

Totals: 171,251,055 $ 1,747,498,669 1,282,407 1,418,380

Source: MoPSC FERC Form 2 2001 Annual Reports (Missouri Jurisdictional)

49

ANNUAL REPORT 2002

WWWWWateraterateraterater Statistics Statistics Statistics Statistics StatisticsCalendarCalendarCalendarCalendarCalendar YYYYYearearearearear 2001 (Missouri Jurisdictional) 2001 (Missouri Jurisdictional) 2001 (Missouri Jurisdictional) 2001 (Missouri Jurisdictional) 2001 (Missouri Jurisdictional)

Name of CompanyName of CompanyName of CompanyName of CompanyName of Company Customers Customers Customers Customers Customers

Missouri-American Water Company * 413,580Raytown Water Company 6,770The Empire District Electric Company 4,515Tri State Utility Company 2,485U. S. Water Company 2,250The Meadows Water Company 1,085Terre Du Lac Utilities Corporation 1,070Rex Deffenderfer Enterprises 995Ozark Shores Water Company 995AquaSource/R.U. 960I. H. Utilities 700Noel Water Company 695Silverleaf Resorts 690Taney County Utilities Corp. 515AquaSource/C.U. 420Central Jefferson County Utility 410Warren County Water & Sewer Co. 355Highway H Utilities 325Foxfire Utility Company 320KMB Utility Corporation 315S.K.&M. Water & Sewer Co. 290Camelot Utility 275Osage Water Company 260Loma Linda Development Company 245South Jefferson County Utility Co. 215Willows Utility Company 215Public Funding Corp. - City of Ozark 210Port Perry Service Company 210Cedar Hill Estates Water Company 200Hillcrest Utilities Company 190Gascony Water Company 185Peaceful Valley Service Company 165Roark Water & Sewer Company 160Franklin County Water Company 160

* Merged company including Missouri-American Water Company, St. Louis County Water Company and JeffersonCity Water Works Company

**Provides service to two commercial customers including a condominium development and a shopping center.

*** Provides wholesale service to two distribution systems.

NOTE: Compiled 9/25/02 based upon most recently available data from Water and Sewer Department files.Customer numbers rounded to the nearest “five,” except for last two listings.

Name of CompanyName of CompanyName of CompanyName of CompanyName of Company CustomersCustomersCustomersCustomersCustomers

Suburban Water Company 155Stockton Hills Water Company 150Cat-Pac Waterworks 150Swiss Villa Utilities Inc. 140Missouri Utilities Company 135Lakeland Heights Water Company 130White River Valley Water Company 130Emerald Pointe Utility Company 125Rogue Creek Utilities 110Kimberling City Water Company 110Moore Bend Water Company 100Riverfork Water Company 100Midland Water Company 95Woodland Manor Water Company 85L.T.A. Water Company 85Evergreen Lake Water Company 80Frimel Water Company 75Woodland Heights Utilities 70Whispering Hills Water Company 65Gladlo Water & Sewer Company 60Shell Knob Estates Utilities 55Franklin County Service Company 55Roy L Utilities 55Argyle Estates Water Supply 50Spokane Highlands Water Co. 50Oakbrier Water Company 45Hickory Hills Water & Sewer Co. 45Lakewood Manor Limited 30Lake Region Water & Sewer Co. 25Wilden Heights Water Company 20Lake Northwoods Utility Company 20Valley Woods Water Company 15Bear Creek Water & Sewer Company 10Kimberling Investments, Inc.** 2Middle Fork Water Company *** 2

51

ANNUAL REPORT 2002

54

Sewer StatisticsCalendar Year 2001 (Missouri Jurisdictional)

Name of Company Customers

AquaSource/C.U. 1,525Terre Du Lac Utilities Corporation 1,040House Springs Sewer Company 780Meramec Sewer Company 740Cedar Hill Utility Company 665Ozark Water & Wastewater Mgmt. 415Central Jefferson County Utility 410Silverleaf Resorts 390Warren County Water & Sewer Company 335P.C.B. Inc. 300Village Water & Sewer 300The Meadows Water Company 275Timber Creek Sewer Company 265KMB Utility Corporation 220South Jefferson County Utility Company 215Willows Utility Company 215L.W. Sewer Corporation 195Hillcrest Utilities Company 190Foxfire Utility Company 180Lincoln County Utilities 175Stoddard County Sewer Company 170S.K.&M. Water & Sewer Company 170Osage Water Company 155Peaceful Valley Service Company 150Roark Water & Sewer Company 150Swiss Villa Utilities 140Missouri Utilities Company 135Port Perry Service Company 120Emerald Pointe Utility Company 110

Name of Company Customers

M.P.B. Inc. 100Missouri-American Water Company 100Rogue Creek Utilities 95Mill Creek Sewer Company 75Savannah Heights Industrial Treatment 70Taney County Utilities Corporation 70Woodland Heights Utilities 70North Oak Sewer 70Franklin County Service Company 65Highway H Utilities 65WPC Sewer Company 65Gladlo Water & Sewer Company 60Roy L Utilities 55Shell Knob Estates Utilities, Inc. 50Hickory Hills Water & Sewer Company 45S. T. Ventures 40Lake Region Water & Sewer Company 40Warren County Sewer Company 35Cannon Home Association 30Central Rivers Wastewater Utility 30Lake Hannibal Sewer Company 25Lake Northwoods Utility Company 20Taneycomo Highlands 15AquaSource Development Company 15TBJ Sewer Systems 15Bear Creek Water & Sewer Company 10Valley Woods Water Company 10Southwest Sewer Corporation* 0

* Out of business, but certificate not cancelled

NOTE: Tables compiled 9/25/02 based upon most recently available data from Water and Sewer Department files.Customers rounded to the nearest “five.”


52

Contacting the PSCContacting the PSCContacting the PSCContacting the PSCContacting the PSC

Missouri Public Service Commission offices are located in Kansas City, Jefferson City andSt. Louis. The PSC is open from 8:00-12:00 noon and 1:00-5:00 p.m., Monday throughFriday, except on state holidays.

Jefferson City:Jefferson City:Jefferson City:Jefferson City:Jefferson City: Missouri Public Service CommissionGovernor Office Building200 Madison Street(Mailing Address: P.O. Box 360)Jefferson City, MO 65102TTTTToll-froll-froll-froll-froll-free Consumeree Consumeree Consumeree Consumeree Consumer Hotline for Hotline for Hotline for Hotline for Hotline for

Complaints: (800) 392-421Complaints: (800) 392-421Complaints: (800) 392-421Complaints: (800) 392-421Complaints: (800) 392-42111111

Other Business: (573) 751-3234Fax: (573) 751-1847

St. Louis:St. Louis:St. Louis:St. Louis:St. Louis: Missouri Public Service Commission815 Charter Commons Dr.Suite 100BChesterfield, MO 63017-0608Telephone No.: (636) 207-8001Fax: (636) 207-8010

Kansas City:Kansas City:Kansas City:Kansas City:Kansas City: Missouri Public Service Commission3675 Noland RoadSuite 110Independence, MO 64055Telephone No.: (816) 325-0100Fax: (816) 325-0109

WWWWWeb site addreb site addreb site addreb site addreb site address:ess:ess:ess:ess: http://wwwhttp://wwwhttp://wwwhttp://wwwhttp://www.psc.state.mo.us.psc.state.mo.us.psc.state.mo.us.psc.state.mo.us.psc.state.mo.us

53

ANNUAL REPORT 2002

56

John M. Atkinson 1913-1916William F. Woerner 1913-1914John Kennish 1913-1917; 1920Frank A. Wrightman 1913-1915Howard B. Shaw 1913-1917Edwin J. Bean 1914-1925Eugene McQuillin 1915-1917William G. Busby 1916-1921David E. Blair 1917-1920Noah W. Simpson 1917-1923Edward Flad 1917-1921John A. Kurtz 1920-1923Hugh McIndoe 1921-1923A.J. O’Reilly 1921-1925Richard H. Musser 1923-1925Thomas J. Brown 1923-1928D.E. Calfee 1925-1929Almon Ing 1925-1933S.M. Hutchinson 1925-1931J.H. Porter 1925-1933James P. Painter 1928-1929Milton R. Stahl 1929-1933J. Fred Hull 1929-1934George H. English 1931-1936J.C. Collet 1933-1935William Stoecker 1933-1936W.M. Anderson 1933-1938Harry E. McPherson 1934-1935Sam O. Hargus 1935-1937John S. Boyer 1935-1941Albert D. Nortoni 1936-1938John A. Ferguson 1936-1944J.D. James 1937-1942Marion S. Francis 1938-1941Scott Wilson 1938-1941Paul Van Osdol 1941-1943Frederick Stueck 1941-1943Kyle Williams 1941-1952Charles L. Henson 1942-1959Albert Miller 1943-1944Richard Arens 1944-1945Agnes Mae Wilson 1943-1949E.L. McClintock 1945-1967Morris E. Osburn 1945-1952John P. Randolph 1949-1951

Henry McKay Cary 1950-1955Maurice Covert 1952-1953Tyre W. Burton 1952-1965Frank Collier 1953-1954M.J. McQueen 1954-1956D.D. McDonald 1955-1961William Barton 1956-1965Frank J. Iuen 1959-1963Frank W. May 1961-1967Donal D. Guffey 1963-1968William R. Clark 1965-1975Charles J. Fain 1965-1977Howard Elliot, Jr. 1967-1970Marvin E. Jones 1967-1973Willard D. Reine 1968-1975James F. Mauze 1971-1975A. Robert Pierce, Jr. 1973-1977James P. Mulvaney 1975-1977Stephen B. Jones 1975-1979Hugh A. Sprague 1975-1979Charles J. Fraas 1977-1983Leah Brock McCartney 1977-1983Alberta Slavin 1977-1981Stephanie Bryant 1979-1981Larry W. Dority 1979-1983John C. Shapleigh 1981-1984Charlotte Musgrave 1981-1988Allan G. Mueller 1983-1996Connie Hendren 1983-1989James M. Fischer 1984-1989William D. Steinmeier 1984-1992David Rauch 1989-1993Kenneth McClure 1990-1997Ruby Letsch-Roderique 1990-1991Patricia Perkins 1991-1995Duncan Kincheloe 1992-1997Harold Crumpton 1993-2000M. Dianne Drainer 1995-2001Karl Zobrist 1996-1997Robert Schemenauer 1998-2001Connie Murray 1997-presentSheila Lumpe 1997-presentKelvin Simmons 2000-presentSteve Gaw 2001-presentBryan Forbis 2001-present

Commissioner Length of ServiceCommissioner Length of Service

PSC Commissioners Past and Present


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Missouri Public Service CommissionPO Box 360 Jefferson City, Missouri 65102

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