How should Missouri assess state utility regulation?

JEFFERSON CITY, Mo. – Are the rankings of state utility commissions by the Regulatory Research Associates (RRA) still a valid assessment of the state’s regulation?

That was the question Sen. Ed Emery posed to the Midwest Energy Consumers Group (MECG) in a letter back in late November.

Earlier in 2017, the RRA lowered its assessment of Missouri regulation, dropping the state’s credit profile down two notches from an A2 (average) to BA1 (below average). The drop placed the state into the bottom 10 of all 50 states.

In a response, David Woodsmall of MECG said that the RRA ranking is just one factor to consider among others.

“MECG believes that Missouri regulation is working for both customers and utility shareholders. Clearly, as evidenced by the JD Power rankings, customers are receiving the safe and adequate service that they expect,” he wrote. “On the other hand, Missouri regulation has allowed shareholders to see stock appreciation that has outperformed both the utility sector and the market as a whole.  Therefore, while the RRA rankings are a consideration, in this case, they are not indicative of how Missouri regulation is performing.”

Read his full letter below:

 

This story originally appeared on The Missouri Times

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