247.172. Written territorial agreements for sale and distribution of water--commission may designate boundaries--approval of commission, hearings--rights of suppliers not a party to agreement--complai
Written territorial agreements for sale and distribution ofwater--commission may designate boundaries--approval ofcommission, hearings--rights of suppliers not a party toagreement--complaints, hearings, authority of commission--fees.
247.172. 1. Competition to sell and distribute water, as between andamong public water supply districts, water corporations subject to publicservice commission jurisdiction, and municipally owned utilities may bedisplaced by written territorial agreements, but only to the extenthereinafter provided for in this section.
2. Such territorial agreements shall specifically designate theboundaries of the water service area of each water supplier subject to theagreement, any and all powers granted to a public water supply district bya municipality, pursuant to the agreement, to operate within the corporateboundaries of that municipality, notwithstanding the provisions of sections247.010 to 247.670 to the contrary, and any and all powers granted to amunicipally owned utility, pursuant to the agreement, to operate in areasbeyond the corporate municipal boundaries of its municipality.
3. Where the parties cannot agree upon the boundaries of the waterservice areas that are to be set forth in the agreement, they may, bymutual consent of all parties involved, petition the public servicecommission to designate the boundaries of the water service areas to beserved by each party and such designations by the commission shall bebinding on all such parties. Petitions shall be made pursuant to the rulesand regulations of the commission governing applications for certificatesof public convenience and necessity and the commission shall holdevidentiary hearings on all petitions so received as required in subsection5 of this section. The commission shall base its final determinationregarding such petitions upon a finding that the commission's designationof water service areas is in the public interest.
4. Before becoming effective, all territorial agreements entered intounder the provisions of this section, including any subsequent amendmentsto such agreements, or the transfer or assignment of the agreement or anyrights or obligations of any party to an agreement, shall receive theapproval of the public service commission by report and order.Applications for commission approval shall be made and notice of suchfiling shall be given to other water suppliers pursuant to the rules andregulations of the commission governing applications for certificates ofpublic convenience and necessity. Unless otherwise ordered by thecommission for good cause shown, the commission shall rule on suchapplications not later than one hundred twenty days after the applicationis properly filed with the secretary of the commission.
5. The commission shall hold evidentiary hearings to determinewhether such territorial agreements should be approved or disapproved,except that in those instances where the matter is resolved by astipulation and agreement submitted to the commission by all the parties,such hearings may be waived by agreement of the parties. The commissionmay approve the application if it determines that approval of theterritorial agreement in total is not detrimental to the public interest.Review of commission decisions under this section shall be governed by theprovisions of sections 386.500 to 386.550, RSMo.
6. Commission approval of any territorial agreement entered intounder the provisions of this section shall in no way affect or diminish therights and duties of any water supplier not a party to the agreement toprovide service within the boundaries designated in such territorialagreement. In the event any water corporation which is not a party to theterritorial agreement and which is subject to the jurisdiction, control andregulation of the commission under chapters 386, RSMo, and 393, RSMo, hassought or hereafter seeks authorization from the commission to sell anddistribute water or construct, operate and maintain water supply facilitieswithin the boundaries designated in any such territorial agreement, thecommission, in making its determination regarding such requested authority,shall give no consideration or weight to the existence of any suchterritorial agreement and any actual rendition of retail water supplyservices by any of the parties to such territorial agreement will notpreclude the commission from granting the requested authority.
7. The commission shall have jurisdiction to entertain and hearcomplaints involving any commission-approved territorial agreement. Suchcomplaints shall be brought and prosecuted in the same manner as othercomplaints before the commission. The commission shall hold an evidentiaryhearing regarding such complaints, except that in those instances where thematter is resolved by a stipulation and agreement submitted to thecommission by all the parties, such hearings may be waived by agreement ofthe parties. If the commission determines that a territorial agreementthat is the subject of a complaint is no longer in the public interest, itshall have the authority to suspend or revoke the territorial agreement.If the commission determines that the territorial agreement is still in thepublic interest, such territorial agreement shall remain in full force andeffect. Except as provided in this section, nothing in this section shallbe construed as otherwise conferring upon the commission jurisdiction overthe service, rates, financing, accounting, or management of any publicwater supply district or municipally owned utility, or to amend, modify, orotherwise limit the rights of public water supply districts to provideservice as otherwise provided by law.
8. Notwithstanding the provisions of section 386.410, RSMo, thecommission shall by rule set a schedule of fees based upon its costs inreviewing proposed territorial agreements for approval or disapproval.Responsibility for payment of the fees shall be that of the parties to theproceeding as ordered by the commission in each case. The fees shall bepaid to the director of revenue who shall remit such payments to the statetreasurer. The state treasurer shall credit such payments to the publicservice commission fund, or its successor fund, as established in section33.571, RSMo. Nothing in this section shall be construed as otherwiseconferring upon the commission jurisdiction over the service, rates,financing, accounting or management of any public water supply district ormunicipally owned utility and except as provided in this section, nothingshall affect the rights, privileges or duties of public water supplydistricts, water corporations subject to public service commissionjurisdiction or municipally owned utilities.
9. Notwithstanding any other provisions of this section, thecommission may hold a hearing regarding any application, complaint orpetition filed under this section upon its own motion.
(L. 1991 H.B. 299, A.L. 2007 S.B. 416)