HB 853 — Modifies provisions for electrical corporations

Bill Text

Compared against the Missouri Revised Statutes as published AI-generated reading aid — verify against the official bill.

This bill amends 5 section(s) of the Missouri Revised Statutes: Section 393.135, RSMo; Section 393.1080, RSMo; Section 536.028, RSMo; Section 393.1090, RSMo; Section 386.510, RSMo.

• Section 393.135, RSMo

  1. Except as provided in subsection 2 of this section, 2. (1) An electrical corporation shall be permitted, subject to the limitations in this subsection, to include construction work in progress for any new natural gas- generating unit in rate base amounts recorded. The inclusion of construction work in progress allowed under this subsection shall be in lieu of any otherwise applicable allowance for funds used during construction that would have accrued from and after the effective date of new base rates that reflect inclusion of the construction work in progress in rate base. The commission shall determine, in a proceeding under section 393.170, the amount of construction work in progress that may be included in rate base. The amount shall be limited by the estimated cost of such project and project expenditures made within the estimated construction period for such project. Base rate recoveries arising from inclusion of construction work in progress in base rates are bold-face subject to refund, together with interest on the refunded amount at the same rate as the rate of interest for delinquent taxes determined by the director of revenue in accordance with section 32.065, if, and to the extent the commission determines, in a subsequent complaint or general rate proceeding, that construction costs giving rise to the construction work in progress included in rate base were imprudently incurred. Return deferred under subdivision (2) of subsection 3 of section 393.1400 for plant that has been included in base rates as construction work in progress shall offset the amounts deferred under section 393.1400. (2) This subsection shall expire on December 31, 2035, unless the commission determines, after a hearing conducted in 2035, upon a submission from an electrical corporation of an application requesting and demonstrating that good cause exists to extend the effectiveness of this subsection through December 31, 2045. The secretary of the commission shall notify the revisor of statutes when the conditions set forth for the

  amended

• Section 393.1080, RSMo

  documentation annually, in a format determined by the commission, reflecting its plan to own or have rights to sufficient capacity to meet its capacity obligations for the upcoming planning year and each of the three subsequent planning years. Electrical corporations shall submit such documentation, which shall include its capacity position for the upcoming and three subsequent planning years consistent with resource adequacy requirements of the appropriate regional transmission organization or independent system operator or commission, including by season or other applicable period, within thirty days after the appropriate regional transmission organization or independent system operator or commission, if applicable, makes a final determination as to the electrical corporation’s resource adequacy requirements for the upcoming planning year. 2. The commission may require any additional audits and reporting as the commission considers necessary to determine if an electrical corporation’s plan provides for electrical corporation ownership or contractual rights to sufficient capacity for the planning year beginning four years after the beginning of the current planning year. 3. If an electrical corporation fails to have sufficient capacity for the upcoming planning year and it is determined by the commission to be the result of the electrical corporation’s imprudence, the commission may disallow, after a hearing, any associated costs related to said failure in a future proceeding. The commission may require submission of a plan within six months to resolve any expected capacity deficiency for the subsequent three planning years. 4. As used in this section, the following terms shall mean: ("Appropriate regional transmission organization or independent system operator", the Midcontinent Independent System Operator or the Southwest Power Pool, or any successor organization; ("Sufficient capacity", owned or contracted-for capacity that meets the planning reserve margin or successor metric established by the appropriate regional transmission organization or independent system operator or, in the case of an electrical corporation that is not a participant in a regional transmission organization or independent system operator, that meets the planning reserve margin or successor metric established by the commission. 5. The commission may promulgate rules necessary to implement the provisions of this section. Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable,

  amended

• Section 536.028, RSMo

  vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August

  amended

• Section 393.1090, RSMo

  as needed thereafter, commence an integrated resource planning proceeding for electrical corporations, to be conducted under the rules to be adopted to implement this section. As part of such proceeding, the commission shall: (1) Identify any required planning reserve margins and applicable local clearing requirements and any proposed planning reserve margins and local clearing requirements that are scheduled to take effect within a relevant future timeframe; (Identify significant existing or proposed state or federal environmental regulations, laws, or rules and identify how each such regulation, law, or rule would apply to electrical corporations in this state; (3) Establish an alternative resource plan or plans that shall be included in electrical corporation integrated resource filings required by subsection 3 of this section and the factors that each electrical corporation should take into account in developing such plans including, but not limited to, all of the following: (a) Projected planning reserve margins and local clearing requirements and the environmental regulations, laws, or rules identified in subdivisions (1) and (2) of this subsection, respectively; (b) Projections of future loads, including both energy and capacity over the planning period; (c) The supply-side and demand-side resources that reasonably could address any need for additional energy and capacity including, but not limited to, the type of generation technology for any proposed generation facility, projected load impact due to electrification or economic development projects, and projected load management and demand response savings; (d) The projected cost of different types of technologies and fuel used for electric generation; and (e) Any other factors the commission may order to be considered; (4) Identify or designate any software, data standards, and formatting to be used in modeling the alternative resource plan or plans under subdivision (3) of this subsection; and (5) Complete such proceeding no less than eighteen months prior to the first integrated resource plan filing provided for by subsection 2 of this section. 2. Not later than August 28, 2027, the commission shall, under rules to be adopted to implement this section, publish a schedule for electrical corporations to file integrated resource plans every four years, with the first integrated resource plan filing to occur not before the first day of the nineteenth month after publication of such schedule. Each electrical corporation shall, according to the published schedule, file with the commission an integrated resource plan that includes an alternative resource plan or plans meeting the requirements of subdivision (3) of subsection 1 of this section and such other alternative resource plans as the electrical corporation deems appropriate. All alternative resource plans shall cover a minimum sixteen-year planning horizon. All such plans shall reflect projections of the corporation’s load obligations and how under each such plan the electrical corporation would reliably meet its projected load obligations over such periods consistent with applicable planning reserve margins, local clearing requirements, and applicable state and federal environmental regulations, laws, or rules. 3. Without limiting the requirements set forth in subsection 2 of this section, an electrical corporation’s integrated resource plan filing shall include: (Information regarding generating units in the electrical corporation’s existing portfolio including, but not limited to, unit characteristics; current and expected accredited capacity by season; licensing status; current depreciation rates for each generating unit; currently expected retirement dates and, if applicable, any remaining useful life of each generating unit, and identification of potential capital projects that are reasonably expected to result in the extension of the retirement date of each generating unit; (Plans for meeting current and futu

  amended

• Section 386.510, RSMo

  docket shall have sixty days to respond to the electrical corporation’s further filing unless extended for good cause by the commission. Within sixty days after the deadline for such other parties’ filings, the commission shall issue its report and order, which shall be final for purposes of rehearing under section 386.500, and appeal under section 386.510 indicating whether the deficiencies have been adequately addressed by the electrical corporation’s further filing, and the commission may approve the electrical corporation’s modified preferred resource plan and may approve specific supply-side resources or a specified quantity of supply-side resources by supply-side resource type, or both. If the commission finds continued deficiencies in the electrical corporation’s modified preferred resource plan: (a) The commission may, under the procedures provided for in section 393.270, initiate a complaint proceeding; (b) The electrical corporation shall not be eligible for a limited inquiry in any proceeding under section 393.170 as set forth in subdivision (1) of this subsection for any resource additions not approved by the commission; and (c) The electrical corporation shall not be eligible for construction work in progress as set forth in subdivision (3) of this subsection for any resource additions not approved by the commission. (3) Notwithstanding section 393.135 to the contrary, if approved in a proceeding granting permission and approval under subsection 1 of section 393.170, electrical corporations may, subject to the limitations provided for in this subdivision (3), be permitted to include in rate base amounts recorded to construction work in progress for the investments for which permission is given under subdivision (1) of subsection 5 of this section. The inclusion of construction work in progress allowed under this subdivision shall be in lieu of any otherwise applicable allowance for funds used during construction that would have accrued from and after the effective date of new base rates that reflect inclusion of the construction work in progress in rate base. The commission shall determine, in a proceeding under section 393.170, the amount of construction work in progress that may be included in rate base. The amount shall be limited by the estimated cost of such project and project expenditures made within the estimated construction period for such project. Base rate recoveries arising from inclusion of construction work in progress in base rates are subject to refund, together with interest on the refunded amount at the same rate as the rate of interest for delinquent taxes determined by the director of revenue in accordance with section 32.065, if and to the extent the commission determines, in a subsequent complaint or general rate proceeding, that construction costs giving rise to the construction work in progress included in rate base were imprudently incurred. Return deferred under subdivision (2) of subsection 3 of section 393.1400 for a plant that has been included in base rates as construction work in progress shall offset the amounts deferred under section 393.1400. 6. The commission shall promulgate rules necessary to implement the provisions of this section. Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable,

  amended

• Section 536.028, RSMo

  vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2025, shall be invalid and void.

  amended

Action History

1. January 29, 2025

   Public Hearing Completed (H)

2. January 22, 2025

   Referred: Utilities(H)

3. January 14, 2025

   Read Second Time (H)

4. January 13, 2025

   Introduced and Read First Time (H)

Sponsors

• Josh Hurlbert · Primary

Subjects