ER-2024-0261

This docket concerns the Missouri Public Service Commission's review of Liberty Utilities (operating as The Empire District Electric Company) and its customer service and billing practices, particularly following significant customer complaints about billing issues such as delayed bills, large back-bills, and poor communication. The Commission opened an investigatory docket in February 2025 (case no. OO-2025-0233) in response to numerous complaints and public testimony regarding these billing and customer service problems. The investigation is ongoing, and staff have not yet filed a final report 1, 2.

Additionally, the docket addresses technical and regulatory matters such as Liberty's request for accounting treatment and deferral for investments in new natural gas generation units, proposals for fuel-related revenue and expense tracking, and property tax deferral mechanisms. There have also been discussions about the costs and feasibility of deploying Green Button Connect My Data to improve customer access to energy usage data, referencing cost estimates from other utilities for context 3, 4, 5, 6.

Stakeholders in the referenced Missouri Public Service Commission dockets involving Liberty Utilities/Empire District Electric Company include:

- Missouri Public Service Commission Staff
- The Empire District Electric Company (Liberty)
- The Empire District Retired Members & Spouses Association, LLC (EDRA)
- Midwest Energy Consumers Group (MECG)
- Renew Missouri
- Influent Energy
- Office of the Public Counsel (OPC)

Positions:
- Staff, Liberty, EDRA, MECG, Renew Missouri, and Influent Energy have jointly participated in filings and procedural scheduling, indicating general cooperation on process matters 1.
- OPC has filed motions seeking to correct or clarify procedural schedules, sometimes proposing revisions that differ from the joint proposal of the other parties, suggesting OPC may oppose or seek changes to certain process elements 1.
- Influent Energy’s application for intervention is contested by Liberty, which argues that Influent is a competitor and has not shown a unique interest or how it would be adversely affected by the final order. Liberty opposes granting Influent party status, citing potential prejudice due to access to confidential information 2.
- Stakeholders such as Staff, MECG, Renew Missouri, and the Department of Energy have previously been signatories to stipulations and agreements with Liberty regarding mechanisms like the MPPM, while OPC has opposed certain elements or sought modifications in those agreements 3.

In summary:
- Staff, EDRA, MECG, and Renew Missouri generally work collaboratively with Liberty.
- OPC often recommends changes or opposes elements of Liberty’s proposals.
- Liberty opposes Influent’s intervention as a party.

The docket discusses several financial and timeline risks and concerns:

Financial Risks:
- Customer bill affordability is a major concern. Rising capacity prices, increased infrastructure costs, and commodity price volatility are leading to higher customer bills, which could trigger customer dissatisfaction and regulatory pushback on future rate increases. This poses a risk to utilities' ability to recover costs and maintain credit quality. Credit rating agencies (S&P, Moody’s, Fitch) have noted that affordability pressures and increased capital expenditures are eroding credit outlooks for regulated utilities 1.
- The company, Liberty (Empire District Electric), is seeking to recover a significant annual base rate revenue deficiency of $152,825,837, representing a 29.64% increase in total operating revenue. This large increase is driven by multiple factors detailed in testimony, which implies financial risk if such increases are not approved or are reduced by regulators 2.
- The quality of Empire’s billing data and customer service has been compromised by the implementation of the Customer First system, leading to significant billing errors, delayed bills, and large "catch-up" bills for customers. These issues have resulted in numerous complaints and regulatory investigations, raising the risk of disallowance of cost recovery or mandated service improvements that could increase costs 3, 4.

Timeline/Operational Risks:
- The transition to the Customer First enterprise resource planning (ERP) system was expected to resolve legacy system issues but instead introduced new risks, including widespread billing and customer service challenges. The problems were not resolved as quickly as anticipated, and ongoing investigations and regulatory scrutiny continue. This delays both operational stability and potential implementation of further rate structure changes, as the reliability of the billing data is in question 4, 3.
- The Missouri Public Service Commission has opened an investigatory docket (OO-2025-0233) specifically due to persistent customer complaints about billing and service, which has delayed resolution and final recommendations until the investigation concludes. There is no set date for completion, adding regulatory uncertainty and timeline risk to any planned changes or improvements 5.
- Delays in addressing or fixing the billing and customer service issues may further erode customer trust, invite additional regulatory intervention, and complicate future rate case proceedings.

In summary, there are substantial financial risks due to affordability pressures and regulatory scrutiny, as well as timeline risks stemming from unresolved customer service and billing problems and ongoing regulatory investigations 1, 4, 5.

Key events and scheduled submissions in the Empire District Electric Company (Liberty) rate case proceeding (File No. ER-2024-0261) are as follows:

- November 6, 2024: Liberty filed tariff sheets proposing to increase annual electric revenues by approximately $152 million, with a proposed effective date of March 28, 2025. The company proposed a test year ending September 30, 2023, updated through September 30, 2024 1, 2.
- December 13, 2024: Joint proposed procedural schedule filed 3.
- December 19, 2024: Liberty ordered to provide various update filings including monthly kWh opt-out and billing determinants 4, 4, 3.
- December 20, 2024: Commission set initial procedural schedule, including expedited transcripts and multiple discovery conferences 5.
- January 8, 2025: Commission issued order correcting the procedural schedule regarding response times for data requests (changing "business days" to "calendar days") 6.
- February 26, 2025: Liberty withdrew previously filed tariff sheets and filed a new set, along with new prefiled direct testimony 7.
- March 25, 2025: Public Counsel filed a motion for extension of time to file an updated procedural schedule due to pending motions 8.
- March 28, 2025: New proposed tariff sheets' effective date; Commission suspended the sheets for 120 days, plus five months and one week, making the new operation of law date January 2, 2026 2.
- April 7, 2025: Parties submitted updated proposed procedural schedules 9, 7.
- April 10, 2025: Commission set updated procedural schedule and assigned exhibit numbers 7.
- April 14, 2025: Deadline for parties to submit recommendations regarding the true-up period 7, 9.
- April 23, 2025: Commission ordered a true-up period ending March 31, 2025, with true-up direct workpapers due June 30, 2025; true-up testimony due September 15, 2025; true-up rebuttal due September 22, 2025 10, 10.
- September 15, 2025: Surrebuttal and true-up testimony due 7, 10.
- September 22, 2025: True-up rebuttal testimony due 10.
- September 23, 2025: List of issues, order of witnesses, stipulation of facts due 7.
- September 25, 2025: Cutoff for discovery responses and depositions 7.
- September 26, 2025: Position statements due 7.
- October 6–17, 2025: Evidentiary hearing scheduled (with October 20 reserved if needed) 7.
- November 6, 2025: Initial briefs due 7.
- November 14, 2025: Reply briefs due 7.

This timeline captures the major filings, updates, and scheduled procedural steps as of July 31, 2025.

The docket identifies several areas of growth:

1. Geographic and Customer Demand Growth:
- Northern Branson, Missouri: There is increasing demand in the northern Branson area, necessitating the construction of a new distribution line and a tie between circuits. This project was essential to sustain current service levels, accommodate new customers due to regional growth, and maintain system reliability 1.

Key Considerations:
- Infrastructure expansion is required to meet rising demand.
- Reliability and capacity must be maintained as new customers are added.

2. System Modernization and Reliability:
- Downtown Joplin: The conversion of the 4kV distribution system to a 12kV system addressed high fault current and arc flash risks. This modernization was driven by system reliability and safety needs due to previous infrastructure limitations 1.

Key Considerations:
- System upgrades are necessary to mitigate safety risks and maintain reliable service.
- Modernization efforts reduce the number of circuits and rebuild substations for efficiency.

3. Operational Growth – Service Center Improvements:
- Aurora and Bolivar: Construction of new service centers provides operational bases for local crews, improves storage, staging, and response times during outages, and enhances the customer experience with improved facilities, safety, and storm shelters 1.

Key Considerations:
- Improved operational logistics support area growth and faster outage responses.
- Customer service enhancements and safety improvements are prioritized.

Overall, the docket highlights that infrastructure upgrades, reliability improvements, and operational capacity expansion are key to supporting both current and anticipated growth in customer numbers and service demands.