PSC approves agreement reached in Spire Missouri AAO case

JEFFERSON CITY- The Missouri Public Service Commission has approved an agreement reached by parties in a case filed by Spire Missouri, Inc. (Spire Missouri) seeking an Accounting Authority Order (AAO) to govern costs and financial impacts associated with the COVID-19 pandemic.

As part of the agreement, Spire Missouri will implement a new payment assistance program for eligible customers. In addition, Spire Missouri has also agreed to offer the option of an 18-month payment plan through the duration of the AAO.

According to the agreement, the COVID-19 Arrearage Management Program is designed to assist those customers in arrears on their natural gas bill and who have lost their jobs, lost income, or have been furloughed since March 1, 2020. Eligible customers will receive an initial $100 credit to their bill upon entering the program and will receive up to $300 of their arrearage matched by the program, dollar-for-dollar based on arrearage pay down from the participant.

The payment plan will include up to $1 million from Spire, and up to $1 million redirected from expired fiscal year 2020 Multi-Family Low Income energy efficiency programs ($600,000) and from the Community Savers Single-Family Low-Income program ($400,000).

Under the agreement, Spire Missouri will track and defer into a regulatory asset, the following incremental costs directly related to the COVID-19 pandemic, beginning March 1, 2020:

* New or incremental operating and maintenance expenses related to protecting employees and customers (such as additional cleaning of facilities and vehicles; personal protective equipment; technology upgrades and equipment directly related to enabling employees to work from home).

* Increased bad debt expense due to COVID-19 to the extent total bad debt expense exceeds levels included in the cost of service.

* Costs related to any new-assistance programs implemented to aid customers with payment of natural gas bills during the pandemic.

* Increased field employee overtime specifically attributable to changes in Spire field operations procedures caused by the COVID-19 pandemic.

* Lost revenues up to the amount included in rates related to waived late payment fees, reconnection charges and disconnection charges.

Also under the agreement:

* Spire agrees not to defer into a regulatory asset, lost revenues from reduced customer usage due to the pandemic.

* All costs and cost reductions will be tracked and deferred separately into a regulatory asset/liability until March 31, 2021. The duration of the time period may be extended or renewed upon agreement of the parties and approved by the Commission.

* Any party may propose or oppose certain ratemaking treatment of carrying costs related to this COVID-19 AAO in Spire Missouri’s next general rate case.

* The ability to track and defer costs into a regulatory asset is for accounting purposes only. Parties reserve the right to review and challenge Spire Missouri’s recovery of COVID-19 costs and recommend adjustments in the Company’s next general rate case.

Spire Missouri East provides natural gas service to approximately 654,600 customers in the City of St. Louis as well as the Missouri counties of St. Louis, St. Charles, Butler, Iron, Franklin, Jefferson, Madison, Crawford, St. Francois and Ste. Genevieve.

Spire Missouri West provides natural gas service to approximately 522,000 customers in Andrew, Barry, Barton, Bates, Buchanan, Carroll, Cass, Cedar, Christian, Clay, Clinton, Dade, DeKalb, Greene, Henry, Howard, Jackson, Jasper, Johnson, Lafayette, Lawrence, McDonald, Moniteau, Pettis, Platte, Ray, Saline, Stone and Vernon counties.