COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0845H.02C Bill No.:HCS for HB 50 Subject:Energy; Utilities Type:Original Date:February 21, 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 2028Total Estimated
Net Effect on
General Revenue$0$0$0
*This bill could increase utility costs to state departments and local governments if rate changes
are made as a result of these new standards. Oversight assumes this would be an indirect impact
and therefore will not show the impact in the fiscal note.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Public Service
Commission Fund
(0607) *($439,058)($514,748)($523,780)
Total Estimated
Net Effect on Other
State Funds ($439,058) ($514,748) ($523,780)
*Oversight assumes the fiscal impact will exceed $250,000 due to the Public Service
Commission requesting 4 FTE to review rate cases and to have qualified staff for possible
construction of nuclear facilities.
Numbers within parentheses: () indicate costs or losses. L.R. No. 0845H.02C
Bill No. HCS for HB 50
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February 21, 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 2028Public Service
Commission Fund
(PSC) 4 FTE4 FTE4 FTE
Total Estimated Net
Effect on FTE4 FTE4 FTE4 FTE
☒ 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 $0 $0
*This bill could increase utility costs to state departments and local governments if rate changes
are made as a result of these new standards. Oversight assumes this would be an indirect impact
and therefore will not show the impact in the fiscal note. L.R. No. 0845H.02C
Bill No. HCS for HB 50
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February 21, 2025
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FISCAL ANALYSIS
ASSUMPTION
Sections 393.135 and 393.1250 - Missouri Nuclear Clean Power Act
Officials from the Department of Commerce and Insurance – Public Service Commission
(PSC) state that engineers and auditors will have to continually review in rate cases, the
construction of a nuclear facility to determine what should be included in CWIP.
With a nuclear facility, that technology has not been reviewed in many years and is much more
complex than a natural gas, wind, or solar facility and thus the department will need to have
enough qualified staff members to review all of the progress to make sure it is able to make the
best recommendation as possible to the Commission. Therefore, the Public Service Commission
will need 4 additional FTEs consisting of 3 Engineers and 1 Regulatory Auditor.
Oversight does not have any information to the contrary. Therefore, Oversight will the show the
fiscal impact (4) FTE as estimated by the PSC to the Public Service Commission Fund (0607).
Oversight assumes this proposal allows the PSC 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.
Officials from the Office of Administration - Facilities Management Design and
Construction (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.
Officials from the Missouri Department of Conservation anticipate an unknown fiscal impact
of less than $250,000 annually.
Oversight assumes this proposal could increase utility costs to state departments and local
governments if rate changes are made as a result of these new standards. Oversight assumes this
would have an indirect impact and therefore will not show the impact in the fiscal note. L.R. No. 0845H.02C
Bill No. HCS for HB 50
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February 21, 2025
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Officials from the Department of Natural Resource and the Missouri Department of
Transportation both assume 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.
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 2028PUBLIC SERVICE COMMISSION
(0607)
Costs - PSC §393.135 and 393.1250
p. 3
Personnel Service($251,219)($307,492)($313,642) Fringe Benefits($153,329)($186,411)($188,876) Expense & Equipment($34,510)($20,845)($21,262)Total Costs – PSC($439,058)($514,748)($523,780) FTE Change - PSC4 FTE4 FTE4 FTEESTIMATED NET EFFECT ON
PUBLIC SERVICE COMMISSION
(0607)($439,058)($514,748)($523,780)
Estimated Net FTE Change to the
Public Service Commission Fund4 FTE4 FTE4 FTE L.R. No. 0845H.02C
Bill No. HCS for HB 50
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FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0
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.02C
Bill No. HCS for HB 50
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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 DirectorFebruary 21, 2025February 21, 2025