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TOE MO Infrastructure 20170324.pdf


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another Flint, Michigan, happen.
Michael, Illinois has been very progressive on the electric front.
Michael Moehn: Illinois is an example
of a state that encourages investment in a
stronger grid. In 2011, the state passed legislation to modernize its regulatory structure, which included a number of investments for the benefit of electric customers
in the state. It’s performance-based rate
making, so there’s a number of things on
the utility side that requires energy providers improve reliability and make sure
the utility is performing successfully. And
today, it’s working extremely well.
Brian Hoelscher: Wastewater systems
in large cities throughout the country are
all in the same place. The federal government has a strategy of suing those cities
and reaching court-enforceable schedules
for making improvements. We’re one of
200-plus communities that are in that situation. One of the advantages in St. Louis,
because of the large rivers we have — and
that’s kind of the driver for water quality
in our area — we are amongst the last of
the large wastewater utilities to be sued.
And so we’ve taken the opportunity to
learn from the large sewer agencies that
were sued before us. It’s been an opportunity to find out what has been done right
and what has been done wrong. As far as
the infrastructure investment, the federal government makes sure that’s included
the agreements that are put in place. Not

only do you have to fix the issues within
the system that are causing the overflows,
but invariably there are provisions to make
sure you do a good amount of asset management — whether that’s proper inspection and cleaning of the facilities, or other
activities — but also infrastructure renewal
to make sure you don’t fall back to where
you are today 20 years from now. It’s the
right thing to do, but it does help to have
a court-enforceable document that forces
you to do it and necessitates the funding
for the repairs.
Steve Lindsey: I’d say from a gas infrastructure perspective, pipeline needs vary
depending on the region of the country.
The one thing you’re starting to see consistently is regulatory bodies, like public service commissions, recognizing the
need for these systems to be upgraded. I
think one of the most challenging areas
is in the Northeast, such as New York and
New Jersey. Some of those systems would
take more than 100 years to completely
upgrade based on their current pace. Much
of the Southeast is making good progress
regarding infrastructure upgrades. Atlanta Gas Light, for example, has no cast iron
remaining in its system. They aggressively deployed a replacement program years
ago that took a little more than 10 years to
complete. The farther west you go, many
of those systems are somewhat newer and
don’t have as much need for upgrades. In
the Midwest, there are many gas companies, such as Laclede Gas, that are diligently
focused on infrastructure upgrades while

We’re going to
build a pipeline
that goes into
Illinois that brings
gas to this area. It
does a lot of things,
but primarily, it
gives a very lowcost option and
access to gas that
we would not have
normally had.
STEVE LINDSEY,

Laclede Gas

at the same time balancing the impact
these have on customer’s bills.
Michael Moehn: The American Society
of Civil Engineers’ report card on the infrastructure across the country rated Missouri
a D or D-plus — not a report card that any
parent would be proud of. So I think that’s
where we have an opportunity in Missouri
to create an environment that encourages
investments and creates jobs.

the Public Service Commission. We have
our own local rate commission that provides the public a voice in the MSD rate setting process. Thus, we run a little bit differently. And whether we had the consent
decree or not, we are measured against
an affordability rate that’s established by
the federal government; an affordability benchmark that continuously changes
with legislation. All of our stormwater services right now are paid for through prop-

Brian Hoelscher: MSD isn’t covered by

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We Are Invested in Missouri.
Missouri American Water proudly provides high-quality water
service to 160 communities throughout the state. We invest
an average of $65 million every year in St. Louis County,
and $113 million statewide, to maintain and improve
infrastructure as part of our ongoing commitment to the
more than one million customers we serve.