The Missouri Public Service Commission issued a stipulation to Liberty Electric's rate increase request on Wednesday during a case discussion. The commissioners suggested Liberty's customer service and billing needed improvements before approving the rate increase request.
Wednesday's discussion was the result of almost two years of cases between the Missouri Public Service Commission, the Office of Public Counsel, and Liberty Electric representatives.
The first investigation was into Liberty's irregular billing and customer service issues.
The second case was a request for the company to increase its monthly electric bill.
While the procedures for each are different, the issues are commingled and affect each other.
Both issues had separate public hearings earlier this summer in Liberty's largest service area, Southwest Missouri.
The emotional and personal testimonies from customers made the decision very clear, according to Commissioner John Mitchell.
"There is no debate that Liberty has not met its burden," added Mitchell.
Many customers were frustrated with the potential for higher electricity bills, despite no improvements to the billing process.
In total, the commission and the Office of Public Counsel received more than 700 customer testimonies.
There were stern statements by the commission regarding the findings of the hearings and the Office of Public Counsel investigations.
Hearing the public testimony influenced all four of the commissioners' decisions - Commissioner Maida Coleman was 'greatly concerned' with what she heard in the hearings.
"We also want the customers to be able to rely on who they spend their money with; none of us, in any instance, should be paying for the significantly expressed poor service that has been a part of Liberty's history," added Coleman.
Commission Chair Kayla Hahn said her decision comes down to the PSC's statutory obligation "ensuring that customers are provided safe and adequate service at just and reasonable rates."
"We heard time and time again from the public, from Public Counsel staff and from Liberty itself, that Liberty has struggled to provide adequate or reliable customer service to customers," said Hahn.
According to a July press release about the local public hearings, Liberty requested a yearly increase of $152.8 million in revenues from its Missouri electric retail customers. The increase translates to a 30% increase in the customer's monthly charges. The specific change in dollar amount depends on the customer.
For residential customers with a fixed rate, the increase is $13 to $16 per month. Whereas a residential house with an average of 1,500 kWh per month, the bill would increase to approximately $200 a month.
The commissioners applauded Liberty's ability to change leadership and be willing to work with the PSC.
Commissioner Coleman emphasized that the suggestion is reasonable, and it's part of the work that the Office of Public Counsel, Liberty, and the PSC have done during the public hearings this year.
Liberty representatives have requested a time extension to respond to the case discussion. The commissioners agreed the company has from November 17 to November 25 to make the filing of initial and reply briefs.
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