The bill is expected to have a considerable impact on existing state laws governing the operations of electrical corporations. By requiring these companies to plan for future energy needs systematically, the legislation aims to enhance their accountability in managing construction costs and integrating new generation technologies. Furthermore, HB963 allows electrical corporations the ability to include construction work in progress in their rate base, a change designed to alleviate financial burdens when building new facilities. However, these provisions come with regulatory oversight to prevent unjust enrichment at the expense of consumers.
Summary
House Bill 963 proposes significant modifications to the regulation of electrical corporations by repealing the current section 393.135 of the Revised Statutes of Missouri (RSMo) and enacting new sections 393.135, 393.1080, and 393.1090. The primary objective of the bill is to streamline integrated resource planning for electric companies, ensuring they provide adequate and reliable service at just and reasonable rates. This includes the introduction of requirements for electrical corporations to submit comprehensive resource plans every four years, covering various aspects including projected demand, capacity needs, cost estimates, and compliance with environmental regulations.
Contention
While proponents of HB963 argue it will lead to more efficient resource planning and better service delivery for customers, critics express concerns about the potential for increased consumer costs associated with rate base changes. They worry that allowing the inclusion of construction work in progress may lead to elevated rates if proper checks are not enforced. This contention raises questions about the balance between incentivizing infrastructure development and protecting consumer interests, fueling debates in legislative discussions surrounding this bill.