Modifies provisions relating to ratemaking for electrical corporations
The implications of SB1177 on state laws are significant, as the bill's enactment would streamline the approval process for ratemaking principles. Notably, if the commission does not respond to a corporation's petition within 215 days, the proposed guidelines are automatically deemed approved. This provision could potentially lead to faster implementation of changes to costs and rates associated with utility generation, impacting both the operational strategy of electrical companies and consumer billing.
Senate Bill 1177 aims to modify the existing provisions concerning ratemaking for electrical corporations in Missouri. Specifically, it repeals and enacts a new section regarding the principles and treatment related to base rates reflecting capital and non-capital costs that arise from the retirement of generating facilities. The bill authorizes electrical corporations to petition for ratemaking determinations from the commission, which will directly influence how the costs associated with their generating assets are managed within rate structures, thereby affecting electricity pricing for consumers.
A notable point of contention within the bill is the provision that allows electrical corporations to retain coal-fired generating assets in their rate base if deemed necessary by the commission. This component of the legislation has sparked discussions concerning the ongoing viability of coal as an energy source amid changing environmental regulations and market conditions. Critics may argue that this promotes reliance on outdated energy sources, while supporters may assert that it ensures reliability and stability in energy supply, especially during extreme weather events.