COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0845H.01I Bill No.:HB 50 Subject:Energy; Utilities Type:Original Date:January 13, 2025Bill Summary:This proposal allows electrical corporations to charge for services based on
the costs of certain construction work in progress.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028General Revenue*$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
Total Estimated
Net Effect on
General Revenue
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Other State Funds*$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
Total Estimated
Net Effect on Other
State Funds
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
*The State may pay higher initial utility costs if the Public Service Commission authorizes an
electrical corporation to charge for additional amortization, however, Oversight assumes the
potential additional amortization (if any) would be less than the $250,000 threshold.
Numbers within parentheses: () indicate costs or losses. L.R. No. 0845H.01I
Bill No. HB 50
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January 13, 2025
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Local Government$0 to (Unknown)$0 to (Unknown)$0 to (Unknown) L.R. No. 0845H.01I
Bill No. HB 50
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January 13, 2025
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FISCAL ANALYSIS
ASSUMPTION
Sections 393.135 and 393.1250 - Missouri Nuclear Clean Power Act
Officials from the Office of Administration - Facilities Management Design and
Construction (OA-FMDC) state this proposal establishes the Missouri Nuclear Clean Power
Act. It would allow costs of Construction Work in Progress (CWIP) to be passed on to retail
customers of an electrical corporation in Missouri in order to finance the construction project.
It is assumed that there could be an increase in costs incurred by leased, state-owned or
institutional facilities managed by FMDC. However, there is no way to know which
buildings/facilities could be within the service area of the generating plant/facility that would be
able to increase rates in order to cover CWIP. FMDC believes the impact to be $0 to unknown.
Oversight assumes this proposal allows the Public Service Commission to authorize an electrical
corporation to charge for additional amortization to maintain the corporation’s financial ratios in
order to provide a utility company the opportunity to maintain healthy financial ratios during a
major construction project. Oversight assumes the additional amortization will be recouped by
various customer classes by rate increases.
Oversight assumes this proposal could increase utility cost for the Office of Administration as
well as other state agencies and local governments. Since it is unknown how many additional
amortizations will be authorized (if any), Oversight will reflect a range from $0 (no utility begin
a project and therefore no increased rates) to an unknown cost to the state and local political
subdivisions for higher utility costs, however, Oversight assumes any potential increase in utility
cost (if any) would be under $250,000 to the state government.
Officials from the Department of Commerce and Insurance, the Department of Natural
Resource, the Missouri Department of Conservation and the Missouri Department of
Transportation each assumed the proposal will have no fiscal impact on their respective
organizations.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero
impact in the fiscal note for these agencies. L.R. No. 0845H.01I
Bill No. HB 50
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January 13, 2025
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Rule Promulgation
Officials from the Joint Committee on Administrative Rules assume this proposal is not
anticipated to cause a fiscal impact beyond its current appropriation.
Officials from the Office of the Secretary of State (SOS) note many bills considered by the
General Assembly include provisions allowing or requiring agencies to submit rules and
regulations to implement the act. The SOS is provided with core funding to handle a certain
amount of normal activity resulting from each year's legislative session. The fiscal impact for
this fiscal note to the SOS for Administrative Rules is less than $5,000. The SOS recognizes that
this is a small amount and does not expect that additional funding would be required to meet
these costs. However, the SOS also recognizes that many such bills may be passed by the
General Assembly in a given year and that collectively the costs may be in excess of what the
office can sustain with its core budget. Therefore, the SOS reserves the right to request funding
for the cost of supporting administrative rules requirements should the need arise based on a
review of the finally approved bills signed by the governor.
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUE FUNDCost - Office of Administration
Potential increase in electric utility
costs
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT TO
THE GENERAL REVENUE FUND
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
VARIOUS STATE FUNDSCost - Various State Agencies
Potential increase in electric utility
costs
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT TO
VARIOUS STATE FUNDS
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown) L.R. No. 0845H.01I
Bill No. HB 50
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January 13, 2025
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FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028LOCAL POLITICAL
SUBDIVISIONS
Cost - Local Governments
Potential increase in electric utility
costs
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT TO
LOCAL POLITICAL
SUBDIVISIONS
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
FISCAL IMPACT – Small Business
Small businesses could have an increase in utility cost as a result of this proposal.
FISCAL DESCRIPTION
This bill establishes the "Missouri Nuclear Clean Power Act", which allows clean baseload
electric generating plants or facilities rated at 600 megawatts or less that utilize clean baseload
electric generating plants to produce energy not in commercial operation as of August 28, 2025,
to charge for costs associated with construction work in progress before the facility is
operational.
Before any construction begins, the electrical corporation seeking to include construction work
in progress (CWIP) in its rates must file with the Public Service Commission a plan detailing the
costs and the plan to recover those costs through rates. The costs recovered by an electrical
corporation are subject to inclusion or exclusion in a ratemaking proceeding under the authority
of the Public Service Commission. The Commission may also authorize an electrical corporation
to charge for additional amortization to maintain the corporation's financial ratios that will better
allow it to cost-effectively construct a clean baseload generating plant.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space. L.R. No. 0845H.01I
Bill No. HB 50
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January 13, 2025
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SOURCES OF INFORMATION
Office of Administration –
Facilities Management, Design and Construction
Department of Commerce and Insurance
Department of Natural Resources
Department of Transportation
Missouri Department of Conservation
Office of the Secretary of State
Joint Committee on Administrative Rules
Julie MorffJessica HarrisDirectorAssistant DirectorJanuary 13, 2025January 13, 2025