MISSOURI, USA — A law that would have forced Missouri's electricity, water and gas utility providers to disclose which of the state's ZIP codes faced the most shutoffs was effectively shut down by Gov. Parson. However, new emails obtained by the Energy and Policy Institute found there was more going on behind the scenes.
Emails show Missouri's top utility regulator, Kayla Hahn, urged Gov. Mike Parson to kill the rule after she previously said it was "burdensome," created "red tape" and added cost for the state's utilities.
PREVIOUS COVERAGE:
The Missouri Public Service Commission (PSC) is responsible for keeping the state's utilities in check. Hahn was named commission chair by Parson last June after she served as the governor staff's policy director.
"Dearest Team 57 (oh how I miss you!) - I am writing today to request that you deny final rulemaking approval to the PSC Residential Disconnection Rule," an email sent by Hahn to Parson's office read.
The email then instructed Parson to look over her talking points as reasons why she opposed the ZIP code provision. These included the additional regulation and argued that the additional reporting would increase costs for ratepayers. The governor's office estimated the public's cost of the ZIP code provision would be between $934,806 and $1.11 million over the life of the rule. Missouri's current total budget is about $50 billion. The governor's office did not have an estimation of what the rule would cost the utility companies or ratepayers.
Shortly after receiving the email from Hahn, Parson's office sent a single-sentence email to PSC, saying: "Our policy team does not approve this rule."
Parson's office verified the emails were accurate, saying the governor "happened to agree" with Hahn that the proposed policy wasn't in the best interest of the state. The office also said Parson encourages any member of state agencies to contact him with concerns about policy changes.
PSC did not return 5 On Your Side's request for comment.
The Energy and Policy Institute, a utility watchdog group, said 5 On Your Side's initial reporting on the rule spurred the group to issue the public records request that revealed the emails. Read the institute's full story here.
The rule eventually passed, but critically, without the ZIP code provision, meaning utilities only have to share bulk disconnection totals. PSC members previously cited Parson's disapproval as the main reason for removing the ZIP code provision.
Consumer and environmental advocates argued the ZIP code data was necessary to determine what areas around the state faced the most severe energy burden. Without the ZIP code data, advocates won't know what specific areas in Missouri are seeing the highest rates of electricity, water, and gas shutoffs.
Sierra Club in Missouri Senior Organizer Jenn DeRose said Hahn's intervention with the rule went against the PSC's mission to ensure Missourians receive safe and reliable utility services.
"It’s incredibly concerning and unprofessional that any Commissioner, let alone the chair, would intervene to deny critical information that would help Missouri families struggling to pay their bills,” DeRose said. “It’s even more concerning that the chair of the PSC chose to ignore the best practices recommended by Commissioner Coleman ... Missourians deserve better."
PSC Commissioner Maida Coleman, the only commission member who wasn't appointed directly by Parson, agreed with the advocates and even went a step further, saying the ZIP code provision would also help utility companies.
"Having to meet disconnection reporting data by five-digit ZIP codes will allow utilities and all stakeholders to identify and address their delinquencies and disconnection trends," Coleman said. "The more specific the disconnection data is, the more useful it is for taking meaningful action."
