News

2/11/2009

Report released regarding Holcim/CEC dispute

On February 4, 2009, the House Interim Committee on Electric Service Territories and Economic Development released its final report regarding proposed legislation that would allow Holcim to change electric providers.

The House Interim Committee was formed in May 2008, to gather facts and hear testimony regarding Holcim's request to break its 10-year contract with Citizens Electric Corporation and be released from the utility's certificated territory.

After meeting on August 21, 2008, and January 7, 2009, to hear testimony from affected and interested parties, the Committee made no recommendation for legislative action.

The Committee concluded the following:
- It is unlikely that the removal of Citizens Electric from the Missouri Public Service Commission's jurisdiction in 2003 had any impact on the pricing of electricity.
- Citizens Electric does not have unreasonable electricity rates given its current costs of production.
- A narrow waiver involving only Holcim would not benefit the state as Holcim is already operating in Ste. Genevieve and its decisions on plant closings are minimally impacted by electricity costs.
- The Committee strongly encouraged the Missouri Public Service Commission to act to resolve the dispute in as expeditious a manner as possible.

Click here for the committees full report.

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