BEFORE THE PUBLIC SERVICE COMMISSION
OF THE STATE OF MISSOURI

In the Matter of the Joint Application of Missouri-American Water Company, St. Louis County Water Company d/b/a Missouri-American Water Company and Jefferson City Water Works Company d/b/a Missouri-American Water Company for an accounting authority order relating to security costs. 	)))))))	Case No. WO-2002-273	

LIST OF ISSUES, SCHEDULE OF PROCEEDINGS AND
ORDER OF CROSS-EXAMINATION

	COMES NOW the Staff of the Missouri Public Service Commission (“Staff”), on its own behalf, and on behalf of Missouri-American Water Company (“MAWC” or the “Company”), the Office of the Public Counsel (“OPC”), the Utility Workers Union of America Local 335 (“Local 335”), the City of Joplin (“Joplin”), the City of Riverside (“Riverside”), and AG Processing, a Cooperative, Friskies Petcare, a Division of Nestle USA and Wire Rope Corporation of America Inc. (“St. Joseph Intervenors”), being all of the parties in this case, and respectfully states as follows to the Missouri Public Service Commission (“Commission”):
	1.	On January 18, 2002, the Commission issued its Order Granting Intervention and Adopting Procedural Schedule wherein, among other things, it required that the parties  “agree on and file a list of issues to be determined” and file “a list of the witnesses to appear on each day of the hearing and the order in which they shall be called.”  It was later ordered by the Commission that these items be filed by May 14, 2002.
	2.	Pursuant to the ordered procedural schedule, the indicated parties have assembled the following list of issues, list of witnesses, and order of cross-examination.  The listing of issues below is not to be considered as an agreement by any party that any particular listed issue is, in fact, a valid or relevant issue.  Indeed, in the subsequent filing of position statements, some parties may state that they consider a particular listed issue to not be a valid issue.  This “non-binding” listing of issues is not to be construed as impairing any party’s ability to argue about any of these issues or related matters, or to restrict the scope of its response to arguments made by other parties.
	3.	The order of witnesses listed below is the intended order of appearance; however, schedule conflicts may require taking some witnesses at different times during the scheduled hearing.
LIST OF ISSUES
	The parties have agreed upon the following list of contested issues for the purposes of this pleading:
	1.	Should the Commission expressly adopt the four criteria proposed by the Staff for this Accounting Authority Order application?
		A.	Do Staff’s proposed criteria constitute an unlawful change in statewide policy because such change would not be made through a rule making proceeding?
		B.	If the Commission adopts the Staff’s four criteria, then:
			(1)	Are the costs incurred and which are sought to be deferred in this proceeding at least 5% of MAWC’s regulated Missouri income, computed before extraordinary items?
			(2)	Are MAWC’s current rates inadequate to cover the event (i.e., are MAWC’s existing rates sufficient to cover the extraordinary cost and still provide MAWC with a reasonable expectation of earning its authorized rate of return)?
			(3)	Did the expenses result either from:
				(a)	an extraordinary capital addition that is required to insure the continuation of safe and adequate service in which unique conditions preclude recovery of these costs through a rate case filing; or,
				(b)	an extraordinary event that is beyond the control of the utility’s management?
			(4)	Is there a sufficient reason why MAWC cannot recover the costs resulting from these expenditures through the normal rate case process?
		C.	If the Commission does not adopt Staff’s four criteria as requirements to granting an AAO, are the costs incurred by MAWC to increase security measures subsequent to the events of September 11, 2001, “extraordinary, unusual, unique and non-recurring”?
	2.	In light of the above, should the Commission grant to MAWC an Accounting Authority Order to defer recognition of the costs it incurred and attributed to increased security needs after the terrorist attacks of September 11, 2001 in New York City and Washington, D.C.?
	3.	If the Commission grants MAWC an Accounting Authority Order:
		A.	What conditions, if any, should be reflected in the Commission’s order?
		B.	Should the Commission make any indications regarding future ratemaking treatment of the deferred expenditures in the Commission’s order?  If so, what indications should the Commission make?

ORDER OF WITNESSES
	Set forth below is the anticipated order of the appearance of witnesses.  However, the parties desire to expedite the hearing and therefore agree to make all of the witnesses available to testify immediately following the conclusion of the testimony of the preceding witness.
MAWC
	Frank L. Kartmann
	Edward J. Grubb
	Captain Robert Young
Staff
	Janis E. Fischer
OPC
	Kimberly K. Bolin

PROPOSED SCHEDULE
Thursday, June 27, 2002: commencing at 9:00 a.m.
	Mark exhibits
	Opening Statements
	Begin testimony of witnesses in order described above

Friday, June 28, 2002: commencing at 9:00 a.m.
	Continuation of witnesses as necessary

ORDER OF CROSS-EXAMINATION

Witness:	MAWC		Staff		OPC	
Cross:		Riverside		Riverside	Riverside
		St. Joe Int.		St. Joe Int.	St. Joe Int.
		Joplin			Joplin		Joplin
		Local 335		Local 335	Local 335
		OPC			OPC			Staff	
		Staff			MAWC		MAWC

Respectfully submitted,

						DANA K. JOYCE
							General Counsel

							/s/ Keith R. Krueger
____________________________________
							Keith R. Krueger	
				Deputy General Counsel
							Missouri Bar No. 23857

							Attorney for the Staff of the
							Missouri Public Service Commission
							P. O. Box 360
							Jefferson City, MO 65102
							(573) 751-4140 (Telephone)
							(573) 751-9285 (Fax)
							kkrueg01@mail.state.mo.us

Certificate of Service

I hereby certify that copies of the foregoing have been mailed or hand-delivered to all counsel of record this 14th day of May 2002.

						/s/ Keith R. Krueger
						____________________________________
							Keith R. Krueger