Cold weather rule to remain in effect for now

JEFFERSON CITY, Mo. -- An order blocking a cold weather rule intended to help people with overdue natural gas bills remains in effect pending further review, a judge said Wednesday.

Cole County Circuit Court Judge Thomas Brown continued a temporary injunction he issued last week that affects only two utilities.

But Brown also scheduled a hearing for next Tuesday on whether the entire rule should be stayed.

Utility regulators say the rule changes are needed because, with winter approaching, an unusually high number of people already lack heat or face disconnection because they have not paid last year's bills.

The cold weather rule, in effect annually from Nov. 1 through March 31, prohibits disconnections when temperatures drop below 30 degrees, allows people unable to pay their full bills to make reduced payments and sets easier criteria for re-establishing gas and electricity connections.

The state Public Service Commission voted to add more safeguards for residential customers.

The rule changes would require utilities to reconnect customers who pay 25 percent of their delinquent tab or $250, whichever is less. Other changes give customers 18 months to pay their delinquent balance, instead of the current 12 months.

Rule challenged

Missouri Gas Energy and Atmos Energy Corp. challenged those provisions, as well as the hearing process used by the PSC.

MGE serves about 500,000 customers in the Kansas City area and western Missouri while Atmos serves about 110,000 customers in parts of northeast and southeast Missouri, including through its subsidiaries of Associated Natural Gas, United Cities Gas and Greeley Gas Co., the PSC said.

The utilities have challenged the revised rule because it only allows for the possibility -- and does not guarantee -- that utilities will be able to recoup costs of implementing the rule changes.

Tim Schwarz, an attorney representing the PSC, said failure to lift Brown's order could affect the health of those people who can't afford to pay their bills.

Schwarz also noted that federal assistance to lower income people who have trouble paying their bills fell about $20 million over last year while the number needing assistance increased.

Brown said that because of the increasing numbers of people who need assistance and the extended time the rule would allow customers to pay bills would only increase the debt of utilities.

Those factors, Brown said, showed that the PSC may be overstepping current law requiring a "reasonable rate of return."

Mike Noack, an official with MGE, testified that the utility would collect $2.3 million less under the new rule. Charles Green of Atmos said the rule change would cost the utility more than $350,000.