PSC GETS WATER PLANT APPLICATION

Union Electric Co. and the city of Cape Girardeau have filed a joint application with the Missouri Public Service Commission for its approval of the city's waters system transaction.

The application is the next step in the process to transfer ownership of the water system from Union Electric to the city.

Cape Girardeau voters approved the transaction in November, and the city plans to complete the process by May.

City officials have called the transfer of the water system the only water system owned by Union Electric a key link to the city's orderly growth, development and master planning.

Assistant City Manager Al Stoverink has said the PSC's review of the application likely will take 30 to 60 days.

In the meantime, Mid-Missouri Engineers Inc. the firm hired by the city to operate the water system for five years will begin to recruit water department employees.

The water system operation now includes about 30 Union Electric employees, and MMEI plans to hire for 18 to 20 positions. Also, the city staff is drafting a water system ordinance to present to the city council next month.

The city also plans to meet with local developers to explain new water extension and connection policies.

The application filed with the PSC states that the proposed transaction isn't detrimental to the public interest because it will not result in reduced service or reliability for those retail water customers now served by Union Electric.

According to the application, the city will increase water rates about 3 percent. Union Electric serves about 15,300 water customers in and near Cape Girardeau.