FIRSTREGULARSESSION
HOUSEBILLNO.713
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEPOLLITT.
1823H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsections393.1030,393.1400,and393.1700,RSMo,andtoenactinlieuthereoffour
newsectionsrelatingtodeferralsbyelectriccorporations.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections393.1030,393.1400,and393.1700,RSMo,arerepealedandfour
2newsectionsenactedinlieuthereof,tobeknownassections393.401,393.1030,393.1400,
3and393.1700,toreadasfollows:
393.401.1.Forpurposesofthissection,thefollowingtermsshallmean:
2 (1)"Electricalcorporation",thesameasdefinedinsection386.020,butshallnot
3includeanelectricalcorporationasdescribedinsubsection2ofsection393.110;
4 (2)"Existingelectricgeneratingpowerplant",athermalpowerplantofover
5onehundredmegawattsinnameplatecapacity,ageneratingunitatathermalpower
6plantwithanameplatecapacityofoveronehundredmegawatts,ortwoormore
7generatingunitsatathermalpowerplantwithacombinednameplatecapacityofover
8onehundredmegawatts;
9 (3)"Regionaltransmissionoperator",aregionaltransmissionorganization,
10independentsystemoperator,orequivalententityapprovedbytheFederalEnergy
11RegulatoryCommissionorsuccessoragencythatexercisesfunctionalcontrolover
12electrictransmissionfacilitieslocatedwithinthisstate.
13 2.PriortotheclosureofanexistingelectricgeneratingpowerplantinMissouri,
14iftheclosureoccursonorafterJanuary1,2026,andsubjecttosubsection3ofthis
15section,anelectricalcorporationregisteredanddoingbusinessinthisstateshallfirst
16certifytothepublicservicecommissionthatsuchutilitycompanyhassecuredand
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17placedontheelectricgridanequalorgreateramountofreliableelectricgenerationas
18accreditedpowerresourcesasdefinedbytheregionaltransmissionoperator.To
19determineifanequalorgreateramountofreliableelectricgenerationisbeingplacedon
20theelectricgridtoreplacetheexistingelectricgeneratingpowerplantthatistobe
21closed,theelectricalcorporationshallcomparetherelevantregionaltransmission
22operator'saverageofthesummerandwinteraccreditedcapacityforthegeneration
23technologyoftheto-be-closedexistingelectricgeneratingpowerplanttotherelevant
24regionaltransmissionoperator'saverageofthesummerandwinteraccreditedcapacity
25forthegenerationtechnologyofthereplacementreliableelectricgeneration.Such
26averageaccreditedcapacityforthereplacementreliableelectricgenerationshallequal
27orexceedsuchaverageaccreditedcapacityfortheexistingelectricgeneratingplantthat
28istobeclosed.
29 3.Withrespecttothereplacementreliableelectricgenerationrequiredby
30subsection2ofthissection,adequateelectrictransmissionlinesshallbeinplaceandthe
31replacementreliableelectricgenerationshallbefullyoperationalconcurrentlywiththe
32closureoftheexistingelectricgeneratingplant,exceptwheresomeorallofthe
33replacementreliableelectricgenerationutilizessomeoralloftheinterconnection
34facilitiesusedbytheexistingelectricgeneratingpowerplant,orwheretheexisting
35electricgeneratingpowerplantisclosedasaresultofanunexpectedorunplannedcause
36orevent.Intheeventthatsomeorallofthereplacementreliableelectricgeneration
37utilizessomeoralloftheinterconnectionfacilitiesutilizedbytheexistingelectric
38generatingpowerplant,thensuchreplacementfacilitiesshallbefullyoperationalwithin
39onehundredtwentydaysoftheclosureoftheexistingelectricgeneratingpowerplant.
40Intheeventthattheexistingelectricgeneratingpowerplantisclosedasaresultofan
41unexpectedorunplannedcauseorevent,thentheelectricalcorporationshallinstall
42replacementreliableelectricgenerationassoonasispracticalfollowingtheclosureof
43theexistingelectricgeneratingpowerplant.Forpurposesofthissection,"unexpected"
44or"unplanned"causeoreventshallmeanamanmadeornaturaleventthatcauses
45functionaloperationsoftheelectricgeneratingpowerplanttocease.Duringany
46periodsallowedbythissubsectionwherethereplacementreliableelectricgenerationis
47notfullyoperationalbythetimeoftheclosureoftheexistingelectricgeneratingpower
48plant,theelectricalcorporationshallacquireadditionalavailablegeneratingcapacity
49throughafirmpurchasepowercontractthatisequalorgreaterthanthereliable
50electricgenerationasdefinedinsubsection2ofthissectionfromtherelevantregional
51transmissionoperator'scapacitymarketorotherwise,sothatitmeetstheplanning
52reservemarginrequirementoftheregionaltransmissionoperatorinwhichthe
53electricalcorporationoperateswithoutrelianceonsuchreplacementreliableelectric
HB713 2 54generation.Atsuchtimeassuchreplacementreliableelectricgenerationisfully
55operational,suchadditionalavailablegeneratingcapacityshallnolongerberequired.
56 4.Theaverageofthesummerandwinteraccreditedcapacityofthereplacement
57reliableelectricgenerationasprovidedinsubsection2ofthissectionshallbeequaltoor
58greaterthantheaverageaccreditedcapacityoftheexistingelectricgeneratingpower
59plantasprovidedinsubsection2ofthissection,recordedbytheregionaltransmission
60operatorasofthetimeconstructionbeginsonthereplacementreliableelectric
61generation.Aspartoftheapprovalprocessbythepublicservicecommissionofthe
62replacementreliableelectricgenerationundersubsection1ofsection393.170,thepublic
63servicecommissionshallpromulgaterulesthattherequirementsofthissubsectionshall
64bemetbythereplacementreliableelectricgeneration.Anyruleorportionofarule,as
65thattermisdefinedinsection536.010,thatiscreatedundertheauthoritydelegatedin
66thissectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallofthe
67provisionsofchapter536and,ifapplicable,section536.028.Thissectionandchapter
68536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
69pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannul
70arulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthority
71andanyruleproposedoradoptedafterAugust28,2025,shallbeinvalidandvoid.
72 5.Suchreliableelectricgenerationmaybeconstructedoutsidethestateifitis
73connectedtotheelectricgridoftheregionaltransmissionoperatorofwhichthe
74electricalcorporationisamember.
75 6.Onorbeforethedatethatthenewreliableelectricgenerationisplacedin
76service,theelectricalcorporationshallprovidecertificationtothepublicservice
77commission,thegeneralassembly,andthegovernorthatithasmettherequirementsof
78thissection.
393.1030.1.Thecommissionshall,inconsultationwiththedepartment,prescribeby
2ruleaportfoliorequirementforallelectricutilitiestogenerateorpurchaseelectricity
3generatedfromrenewableenergyresources.Suchportfoliorequirementshallprovidethat
4electricityfromrenewableenergyresourcesshallconstitutethefollowingportionsofeach
5electricutility'ssales:
6 (1)Nolessthantwopercentforcalendaryears2011through2013;
7 (2)Nolessthanfivepercentforcalendaryears2014through2017;
8 (3)Nolessthantenpercentforcalendaryears2018through2020;and
9 (4)Nolessthanfifteenpercentineachcalendaryearbeginningin2021.
10
11Atleasttwopercentofeachportfoliorequirementshallbederivedfromsolarenergy.The
12portfoliorequirementsshallapplytoallpowersoldtoMissouriconsumerswhethersuch
HB713 3 13powerisself-generatedorpurchasedfromanothersourceinoroutsideofthisstate.Autility
14maycomplywiththestandardinwholeorinpartbypurchasingRECs.Eachkilowatt-hourof
15eligibleenergygeneratedinMissourishallcountas1.25kilowatt-hoursforpurposesof
16compliance.
17 2.(1)Thissubsectionappliestoelectricutilitieswithmorethantwohundred
18fiftythousandbutlessthanonemillionretailcustomersinMissouriasoftheendofthe
19calendaryear2024.
20 (2)Energymeetingthecriteriaoftherenewableenergyportfoliorequirements
21setforthinsubsection1ofthissectionthatisgeneratedfromrenewableenergy
22resourcesandcontractedforbyanacceleratedrenewablebuyershall:
23 (a)Haveallassociatedrenewableenergycertificatesretiredbytheaccelerated
24renewablebuyer,orontheirbehalf,andthecertificatesshallnotbeusedtomeetthe
25electricutility'sportfoliorequirementspursuanttosubsection1ofthissection;
26 (b)Beexcludedfromthetotalelectricutility'ssalesusedtodeterminethe
27portfoliorequirementspursuanttosubsection1ofthissection;and
28 (c)Beusedtooffsetalloraportionofitselectricloadforpurposesof
29determiningcompliancewiththeportfoliorequirementspursuanttosubsection1ofthis
30section.
31 (3)Theacceleratedrenewablebuyershallbeexemptfromanyrenewableenergy
32standardcompliancecostsasmaybeestablishedbytheutilityandapprovedbythe
33commission,basedontheamountofrenewableenergycertificatesretiredpursuantto
34thissubsectioninproportiontotheacceleratedrenewablebuyer'stotalelectricenergy
35consumption,onanannualbasis.
36 (4)An"acceleratedrenewablebuyer"meansacustomerofanelectricutility,
37withanaggregateloadovereightyaveragemegawatts,thatentersintoacontractor
38contractstoobtain:
39 (a)Renewableenergycertificatesfromrenewableenergyresourcesasdefinedin
40section393.1025;or
41 (b)Energyandrenewableenergycertificatesfromsolarorwindgeneration
42resourceslocatedwithintheSouthwestPowerPoolregionandinitiallyplacedin
43commercialoperationafterJanuary1,2020,includinganycontractwiththeelectric
44utilityforsuchgenerationresourcesthatdoesnotallocatetoorrecoverfromanyother
45customeroftheutilitythecostofsuchresources.
46 (5)Eachelectricutilityshallcertify,andverifyasnecessary,tothecommission
47thattheacceleratedrenewablebuyerhassatisfiedtheexemptionrequirementsofthis
48subsectionforeachyear,oranacceleratedrenewablebuyermaychoosetocertify
49satisfactionofthisexemptionbyreportingtothecommissionindividually.
HB713 4 50 (6)Thecommissionmaypromulgatesuchrulesandregulationsasmaybe
51necessarytoimplementtheprovisionsofthissubsection.Anyruleorportionofarule,
52asthattermisdefinedinsection536.010,thatiscreatedundertheauthoritydelegated
53inthissectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallofthe
54provisionsofchapter536and,ifapplicable,section536.028.Thissectionandchapter
55536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
56pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannul
57arulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthority
58andanyruleproposedoradoptedafterAugust28,2025,shallbeinvalidandvoid.
59 (7)Nothinginthissectionshallbeconstruedasimposingorauthorizingthe
60impositionofanyreporting,regulatory,orfinancialburdenonanaccelerated
61renewablebuyer.
62 3.Thecommission,inconsultationwiththedepartmentandwithinoneyearof
63November4,2008,shallselectaprogramfortrackingandverifyingthetradingofrenewable
64energycredits.Anunusedcreditmayexistforuptothreeyearsfromthedateofitscreation.
65Acreditmaybeusedonlyoncetocomplywithsections393.1020to393.1030andmaynot
66alsobeusedtosatisfyanysimilarnonfederalrequirement.Anelectricutilitymaynotusea
67creditderivedfromagreenpricingprogram.Certificatesfromnet-meteredsourcesshall
68initiallybeownedbythecustomer-generator.Thecommission,exceptwherethedepartment
69isspecified,shallmakewhateverrulesarenecessarytoenforcetherenewableenergy
70standard.Suchrulesshallinclude:
71 (1)Amaximumaverageretailrateincreaseofonepercentdeterminedbyestimating
72andcomparingtheelectricutility'scostofcompliancewithleast-costrenewablegeneration
73andthecostofcontinuingtogenerateorpurchaseelectricityfromentirelynonrenewable
74sources,takingintoproperaccountfutureenvironmentalregulatoryriskincludingtheriskof
75greenhousegasregulation.Notwithstandingtheforegoing,untilJune30,2020,ifthe
76maximumaverageretailrateincreasewouldbelessthanorequaltoonepercentifanelectric
77utility'sinvestmentinsolar-relatedprojectsinitiated,ownedoroperatedbytheelectricutility
78isignoredforpurposesofcalculatingtheincrease,thenadditionalsolarrebatesshallbepaid
79andincludedinratesinanamountuptotheamountthatwouldproducearetailrateincrease
80equaltothedifferencebetweenaonepercentretailrateincreaseandtheretailrateincrease
81calculatedwhenignoringanelectricutility'sinvestmentinsolar-relatedprojectsinitiated,
82owned,oroperatedbytheelectricutility.Notwithstandinganyprovisiontothecontraryin
83thissection,evenifthepaymentofadditionalsolarrebateswillproduceamaximumaverage
84retailrateincreaseofgreaterthanonepercentwhenanelectricutility'sinvestmentinsolar-
85relatedprojectsinitiated,ownedoroperatedbytheelectricutilityareincludedinthe
HB713 5 86calculation,theadditionalsolarrebatecostsshallbeincludedintheprudentlyincurredcosts
87toberecoveredascontemplatedbysubdivision(4)ofthissubsection;
88 (2)Penaltiesofatleasttwicetheaveragemarketvalueofrenewableenergycredits
89forthecomplianceperiodforfailuretomeetthetargetsofsubsection1ofthissection.An
90electricutilitywillbeexcusedifitprovestothecommissionthatfailurewasduetoevents
91beyonditsreasonablecontrolthatcouldnothavebeenreasonablymitigated,orthatthe
92maximumaverageretailrateincreasehasbeenreached.Penaltiesshallnotberecoveredfrom
93customers.Amountsforfeitedunderthissectionshallberemittedtothedepartmentto
94purchaserenewableenergycreditsneededforcompliance.Anyexcessforfeitedrevenues
95shallbeusedbythedivisionofenergysolelyforrenewableenergyandenergyefficiency
96projects;
97 (3)Provisionsforanannualreporttobefiledbyeachelectricutilityinaformat
98sufficienttodocumentitsprogressinmeetingthetargets;
99 (4)Provisionforrecoveryoutsidethecontextofaregularratecaseofprudently
100incurredcostsandthepass-throughofbenefitstocustomersofanysavingsachievedbyan
101electricalcorporationinmeetingtherequirementsofthissection.
102 [3.]4.Asprovidedforinthissection,exceptforthoseelectricalcorporationsthat
103qualifyforanexemptionundersection393.1050,eachelectricutilityshallmakeavailableto
104itsretailcustomersasolarrebateforneworexpandedsolarelectricsystemssitedon
105customers'premises,uptoamaximumoftwenty-fivekilowattspersystem,measuredin
106directcurrentthatwereconfirmedbytheelectricutilitytohavebecomeoperationalin
107compliancewiththeprovisionsofsection386.890.Thesolarrebatesshallbetwodollarsper
108wattforsystemsbecomingoperationalonorbeforeJune30,2014;onedollarandfiftycents
109perwattforsystemsbecomingoperationalbetweenJuly1,2014,andJune30,2015;one
110dollarperwattforsystemsbecomingoperationalbetweenJuly1,2015,andJune30,2016;
111fiftycentsperwattforsystemsbecomingoperationalbetweenJuly1,2016,andJune30,
1122017;fiftycentsperwattforsystemsbecomingoperationalbetweenJuly1,2017,andJune
11330,2019;twenty-fivecentsperwattforsystemsbecomingoperationalbetweenJuly1,2019,
114andJune30,2020;andzerocentsperwattforsystemsbecomingoperationalafterJune30,
1152020.Anelectricutilitymay,throughitstariffs,requireapplicationsforrebatestobe
116submitteduptoonehundredeighty-twodayspriortotheJunethirtiethoperationaldate.
117NothinginthissectionshallpreventanelectricalcorporationfromofferingrebatesafterJuly
1181,2020,throughanapprovedtariff.Iftheelectricutilitydeterminesthemaximumaverage
119retailrateincreaseprovidedforinsubdivision(1)ofsubsection[2]3ofthissectionwillbe
120reachedinanycalendaryear,theelectricutilityshallbeentitledtoceasepayingrebatestothe
121extentnecessarytoavoidexceedingthemaximumaverageretailrateincreaseiftheelectrical
122corporationfileswiththecommissiontosuspenditsrebatetarifffortheremainderofthat
HB713 6 123calendaryearatleastsixtydayspriortothechangetakingeffect.Thefilingwiththe
124commissiontosuspendtheelectricalcorporation'srebatetariffshallincludethecalculation
125reflectingthatthemaximumaverageretailrateincreasewillbereachedandsupporting
126documentationreflectingthatthemaximumaverageretailrateincreasewillbereached.The
127commissionshallruleonthesuspensionfilingwithinsixtydaysofthedateitisfiled.Ifthe
128commissiondeterminesthatthemaximumaverageretailrateincreasewillbereached,the
129commissionshallapprovethetariffsuspension.Theelectricutilityshallcontinuetoprocess
130andpayapplicablesolarrebatesuntilafinalcommissionruling;however,ifthecontinued
131paymentcausestheelectricutilitytopayrebatesthatcauseittoexceedthemaximumaverage
132retailrateincrease,theexpendituresshallbeconsideredprudentlyincurredcostsas
133contemplatedbysubdivision(4)ofsubsection[2]3ofthissectionandshallberecoverableas
134suchbytheelectricutility.Asaconditionofreceivingarebate,customersshalltransferto
135theelectricutilityallright,title,andinterestinandtotherenewableenergycreditsassociated
136withtheneworexpandedsolarelectricsystemthatqualifiedthecustomerforthesolarrebate
137foraperiodoftenyearsfromthedatetheelectricutilityconfirmedthatthesolarelectric
138systemwasinstalledandoperational.
139 [4.]5.Thedepartmentshall,inconsultationwiththecommission,establishbyrulea
140certificationprocessforelectricitygeneratedfromrenewableresourcesandusedtofulfillthe
141requirementsofsubsection1ofthissection.Certificationcriteriaforrenewableenergy
142generationshallbedeterminedbyfactorsthatincludefueltype,technology,andthe
143environmentalimpactsofthegeneratingfacility.Renewableenergyfacilitiesshallnotcause
144undueadverseair,water,orlanduseimpacts,includingimpactsassociatedwiththegathering
145ofgenerationfeedstocks.Ifanyamountoffossilfuelisusedwithrenewableenergy
146resources,onlytheportionofelectricaloutputattributabletorenewableenergyresources
147shallbeusedtofulfilltheportfoliorequirements.
148 [5.]6.Incarryingouttheprovisionsofthissection,thecommissionandthe
149departmentshallincludemethanegeneratedfromtheanaerobicdigestionoffarmanimal
150wasteandthermaldepolymerizationorpyrolysisforconvertingwastematerialtoenergyas
151renewableenergyresourcesforpurposesofthissection.
152 [6.]7.Thecommissionshallhavetheauthoritytopromulgaterulesforthe
153implementationofthissection,butonlytotheextentsuchrulesareconsistentwith,anddo
154notdelaytheimplementationof,theprovisionsofthissection.Anyruleorportionofarule,
155asthattermisdefinedinsection536.010,thatiscreatedundertheauthoritydelegatedinthis
156sectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsof
157chapter536and,ifapplicable,section536.028.Thissectionandchapter536are
158nonseverableandifanyofthepowersvestedwiththegeneralassemblypursuanttochapter
159536toreview,todelaytheeffectivedate,ortodisapproveandannularulearesubsequently
HB713 7 160heldunconstitutional,thenthegrantofrulemakingauthorityandanyruleproposedor
161adoptedafterAugust28,2013,shallbeinvalidandvoid.
393.1400.1.Forpurposesofthissection,thefollowingtermsshallmean:
2 (1)"Commission",thepublicservicecommission;
3 (2)"Electricalcorporation",thesameasdefinedinsection386.020,butshallnot
4includeanelectricalcorporationasdescribedinsubsection2ofsection393.110;
5 (3)"Qualifyingelectricplant",allrate-baseadditions,exceptrate-baseadditionsfor
6newcoal-firedgeneratingunits,newnucleargeneratingunits,[newnaturalgasunits,] orrate-
7baseadditionsthatincreaserevenuesbyallowingservicetonewcustomerpremises;
8 (4)"Rate-basecutoffdate",thedaterate-baseadditionsareaccountedforinageneral
9rateproceeding.Intheabsenceofacommissionorderthatspecifiestherate-basecutoffdate,
10suchdateasreflectedinanyjointlyproposedproceduralschedulesubmittedbythepartiesin
11theapplicablegeneralrateproceeding,orasotherwiseagreedtobysuchparties,shallbe
12used;
13 (5)"Weightedaveragecostofcapital",thereturnonratebaseusedtodeterminethe
14revenuerequirementintheelectricalcorporation'smostrecentlycompletedgeneralrate
15proceeding;provided,thatintheabsenceofacommissiondeterminationofthereturnonrate
16basewithinthethree-yearperiodpriortoAugust28,[2022] 2024, theweightedaveragecost
17ofcapitalshallbedeterminedusingtheelectricalcorporation'sactualcapitalstructureasof
18December31,[2021] 2023, excludingshort-termdebt,theelectricalcorporation'sactualcost
19oflong-termdebtandpreferredstockasofDecember31,2021,andacostofcommonequity
20ofnineandone-halfpercent.
21 2.(1)Notwithstandinganyotherprovisionofthischaptertothecontrary,electrical
22corporationsshalldefertoaregulatoryasset[eighty-five] ninetypercentofalldepreciation
23expenseandreturnassociatedwithallqualifyingelectricplantrecordedtoplant-in-serviceon
24theutility'sbookscommencingonorafterAugust28,2018,iftheelectricalcorporationhas
25madetheelectionprovidedforbysubsection5ofthissectionbythatdate,oronthedatesuch
26electionismadeiftheelectionismadeafterAugust28,2018.Ineachgeneralrate
27proceedingconcludedafterAugust28,2018,thebalanceoftheregulatoryassetasoftherate-
28basecutoffdateshall,subjectonlytothecapprovidedforinsection393.1655orsection
29393.1656,asapplicable,beincludedintheelectricalcorporation'sratebasewithoutany
30offset,reduction,oradjustmentbaseduponconsiderationofanyotherfactor,otherthanas
31providedforinsubdivision(2)ofthissubsection,withtheregulatoryassetbalancearising
32fromdeferralsassociatedwithqualifyingelectricplantplacedinserviceaftertherate-base
33cutoffdatetobeincludedinratebaseinthenextgeneralrateproceeding.Theexpirationof
34thissectionshallnotaffectthecontinuedinclusioninratebaseandamortizationofregulatory
35assetbalancesthataroseunderthissectionpriortosuchexpiration.
HB713 8 36 (2)Theregulatoryassetbalancesarisingunderthissectionshallbeadjustedtoreflect
37anyprudencedisallowancesorderedbythecommission.Theprovisionsofthissectionshall
38notbeconstruedtoaffectexistinglawrespectingtheburdensofproductionandpersuasionin
39generalrateproceedingsforrate-baseadditions.
40 (3)Partsofregulatoryassetbalancescreatedunderthissectionthatarenotyetbeing
41recoveredthroughratesshallincludecarryingcostsattheelectricalcorporation'sweighted
42averagecostofcapital,plusapplicablefederal,state,andlocalincomeorexcisetaxes.
43Regulatoryassetbalancesarisingunderthissectionandincludedinratebaseshallbe
44recoveredinratesthroughatwenty-yearamortizationbeginningonthedatenewrates
45reflectingsuchamortizationtakeeffect.
46 3.(1)Depreciationexpensedeferredunderthissectionshallaccountforall
47qualifyingelectricplantplacedintoservicelessretirementsofplantreplacedbysuch
48qualifyingelectricplant.
49 (2)Returndeferredunderthissectionshallbedeterminedusingtheweightedaverage
50costofcapitalappliedtothechangeinplant-relatedratebasecausedbythequalifyingelectric
51plant,plusapplicablefederal,state,andlocalincomeorexcisetaxes.Indeterminingthe
52returndeferred,theelectricalcorporationshallaccountforchangesinallplant-related
53accumulateddeferredincometaxesandchangesinaccumulateddepreciation,excluding
54retirements.
55 4.BeginningFebruary28,2019,andbyeachFebruarytwenty-eighththereafterwhile
56theelectricalcorporationisallowedtomakethedeferralsprovidedforbysubsection2ofthis
57section,electricalcorporationsthatdeferdepreciationexpenseandreturnauthorizedunder
58thissectionshallsubmittothecommissionafive-yearcapitalinvestmentplansettingforth
59thegeneralcategoriesofcapitalexpenditurestheelectricalcorporationwillpursuein
60furtheranceofreplacing,modernizing,andsecuringitsinfrastructure.Theplanshallalso
61includeaspecificcapitalinvestmentplanforthefirstyearofthefive-yearplanconsistent
62withthelevelofspecificityusedforannualcapitalbudgetingpurposes.Foreachprojectin
63thespecificcapitalinvestmentplanonwhichconstructioncommencesonorafterJanuary
64firstoftheyearinwhichtheplanissubmitted,andwherethecostoftheprojectisestimated
65toexceedtwentymilliondollars,theelectricalcorporationshallidentifyallcostsandbenefits
66thatcanbequantitativelyevaluatedandshallfurtheridentifyhowthosecostsandbenefitsare
67quantified.Foranycostorbenefitwithrespecttosuchaprojectthattheelectrical
68corporationbelievescannotbequantitativelyevaluated,theelectricalcorporationshallstate
69thereasonsthecostorbenefitcannotbequantitativelyevaluated,andhowtheelectrical
70corporationaddressessuchcostsandbenefitswhenreviewinganddecidingtopursuesucha
71project.Nosuchprojectshallbebasedsolelyoncostsandbenefitsthattheelectrical
72corporationbelievescannotbequantitativelyevaluated.Anyquantificationforsuchaproject
HB713 9 73thatdoesnotproducequantifiedbenefitsexceedingthecostsshallbeaccompaniedby
74additionaljustificationinsupportoftheproject.Foreachofthefirstfiveyearsthatan
75electricalcorporationisallowedtomakethedeferralsprovidedforbysubsection2ofthis
76section,thepurchaseandinstallationofsmartmetersshallconstitutenomorethansixpercent
77oftheelectricalcorporation'stotalcapitalexpendituresduringanygivenyearunderthe
78corporation'sspecificcapitalinvestmentplan.Atleasttwenty-fivepercentofthecostofthe
79investmentsreflectedineachyear'scapitalinvestmentplan,whichforthepurposesofthis
80subsectionshallexcludethecostsofinvestmentsinnewgeneratingunitsandenergy
81storagesystems,shallbecomprisedofgridmodernizationprojects,includingbutnotlimited
82to:
83 (1)Increaseduseofdigitalinformationandcontrolstechnologytoimprove
84reliability,security,andefficiencyoftheelectricgrid;
85 (2)Dynamicoptimizationofgridoperationsandresources,withfullcybersecurity;
86 (3)Deploymentandintegrationofdistributedresourcesandgeneration,including
87renewableresources;
88 (4)Developmentandincorporationofdemandresponse,demand-sideresources,and
89energy-efficiencyresources;
90 (5)Deploymentofsmarttechnologies(real-time,automated,interactivetechnologies
91thatoptimizethephysicaloperationofappliancesandconsumerdevices)formetering,
92communications,concerninggridoperationsandstatus,anddistributionautomation;
93 (6)Integrationofsmartappliancesanddevices;
94 (7)Deploymentandintegrationofadvancedelectricitystorageandpeak-shaving
95technologies,includingplug-inelectricandhybridelectricvehicles,andthermalstorageair
96conditioning;
97 (8)Provisionoftimelyinformationandcontroloptionstoconsumer;
98 (9)Developmentofstandardsforcommunicationandinteroperabilityofappliances
99andequipmentconnectedtotheelectricgrid,includingtheinfrastructureservingthegrid;and
100 (10)Identificationandloweringofunreasonableorunnecessarybarrierstoadoption
101ofsmartgridtechnologies,practices,andservices.
102
103Projectspecificinformationneednotbeincludedforthefive-yearperiodcoveredbytheplan.
104Withinthirtydaysofthefilingofanycapitalinvestmentplanorannualupdatetoanexisting
105plan,theelectricalcorporationshallhostapublicstakeholdermeetingtoanswerquestions
106andreceivefeedbackabouttheplan.Afterfeedbackisreceived,theelectricalcorporation
107shallfileanoticewiththecommissionofanymodificationstothecapitalinvestmentplanit
108hasaccepted.Changestotheplan,itsimplementation,orthelevelofinvestmentsmadeshall
109notconstituteevidenceofimprudenceoftheinvestmentsmadeundersuchplan.The
HB713 10 110submissionofacapitalinvestmentplanunderthissectionshallnotaffectinanywaythe
111commission'sauthoritywithrespecttothegrantordenialofacertificateofconvenienceand
112necessityundersection393.170.ByFebruarytwenty-eighthfollowingeachyearinwhich
113theelectricalcorporationsubmitsacapitalinvestmentplan,theelectricalcorporationshall
114submitareporttothecommissiondetailingactualcapitalinvestmentsmadetheprevious
115year,thequantitativelyevaluatedbenefitsandcostsgeneratedbyeachofthoseinvestments
116thatexceededtwentymilliondollars,andanyefficienciesachievedasaresultofthose
117investments.
118 5.Thissectionshallonlyapplytoanyelectricalcorporationthathasfiledanotice
119withthecommissionoftheelectricalcorporation'selectiontomakethedeferralsforwhich
120thissectionprovides.Anelectricalcorporationmayprovidenoticetothecommissionone
121timeunderthissubsectionifsuchcorporationhasappliedtothecommissionundersubsection
1222ofsection386.266,providedthecorporationshallnotconcurrentlyutilizedeferralsunder
123thissubsectionandtheelectricrateadjustmentssetforthinsubsection3ofsection386.266.
124Anelectricalcorporation'selectionshallallowittomakethedeferralsprovidedforby
125subsection2ofthissectionuntilDecember31,[2028] 2035. Notwithstandingthe
126immediatelyprecedingsentence,anelectricalcorporationmayseekpermissiontocontinueto
127makethedeferralsprovidedforbysubsection2ofthissectionforanadditionalfiveyears
128beyondDecember31,[2028] 2035, byfilinganapplicationwiththecommissionseeking
129suchpermissionbyDecember31,[2026] 2033, whichapplicationshallberuleduponbythe
130commissionwithinonehundredeightydaysafteritsfiling.Indecidingwhethertograntsuch
131permissiontocontinuethecommissionshallhavetheauthority,consistentwithitsstatutory
132authorityoutsidethissection,toconsidersuchfactorsasinitsjudgmentitdeemsnecessary
133andmayconditionthepermissiononfactorsthatarerelevanttothedeferralsauthorizedby
134subsection2ofthissection.Thecommissionshallmakethedeterminationofwhetherto
135grantsuchpermissiontocontinueafterahearing.Anelectricalcorporationmakingdeferrals
136providedforbysubsection2ofthissectiononandafterJanuary1,2024,shallbesubjectto
137therevenuerequirementimpactcapsetforthundersection393.1656.Failuretoobtainsuch
138commissionpermissiontocontinueshallnotaffectdeferralsmadethroughthedateforwhich
139permissionhasbeengranted,ortheregulatoryandratemakingtreatmentoftheregulatory
140assetsarisingfromsuchdeferralsasprovidedforbythissection.
141 6.Thecommissionmaytakeintoaccountanychangeinbusinessrisktothe
142corporationresultingfromimplementationofthedeferralsinsettingthecorporation'sallowed
143returninanyrateproceeding,inadditiontoanyotherchangesinbusinessriskexperiencedby
144thecorporation.
145 7.ThissectionshallexpireonDecember31,[2033] 2040, exceptthatthe
146amortizationoftheregulatoryassetbalancesarisingunderthissectionshallcontinuetobe
HB713 11 147reflectedintheelectricalcorporation'sratesandremainingregulatoryassetbalancesshallbe
148includedintheelectricalcorporation'sratebaseconsistentwiththeratemakingtreatmentand
149amortizationpreviouslyapprovedbythecommissionpursuanttothissection.
393.1700.1.Forpurposesofsections393.1700to393.1715,thefollowingterms
2shallmean:
3 (1)"Ancillaryagreement",abond,insurancepolicy,letterofcredit,reserveaccount,
4suretybond,interestratelockorswaparrangement,hedgingarrangement,liquidityorcredit
5supportarrangement,orotherfinancialarrangemententeredintoinconnectionwith
6securitizedutilitytariffbonds;
7 (2)"Assignee",alegallyrecognizedentitytowhichanelectricalcorporationassigns,
8sells,ortransfers,otherthanassecurity,alloraportionofitsinterestinorrighttosecuritized
9utilitytariffproperty.Thetermincludesacorporation,limitedliabilitycompany,general
10partnershiporlimitedpartnership,publicauthority,trust,financingentity,oranyentityto
11whichanassigneeassigns,sells,ortransfers,otherthanassecurity,itsinterestinorrightto
12securitizedutilitytariffproperty;
13 (3)"Bondholder",apersonwhoholdsasecuritizedutilitytariffbond;
14 (4)"Code",theuniformcommercialcode,chapter400;
15 (5)"Commission",theMissouripublicservicecommission;
16 (6)"Electricalcorporation",thesameasdefinedinsection386.020,butshallnot
17includeanelectricalcorporationasdescribedinsubsection2ofsection393.110;
18 (7)"Energytransitioncosts"includeallofthefollowing:
19 (a)Pretaxcostswithrespecttoaretiredorabandonedortoberetiredorabandoned
20electricgeneratingfacilitythatisthesubjectofapetitionforafinancingorderfiledunderthis
21sectionwheresuchearlyretirementorabandonmentisdeemedreasonableandprudentbythe
22commissionthroughafinalorderissuedbythecommission,include,butarenotlimitedto,
23theundepreciatedinvestmentintheretiredorabandonedortoberetiredorabandoned
24electricgeneratingfacilityandanyfacilitiesancillarytheretoorusedinconjunction
25therewith,costsofdecommissioningandrestoringthesiteoftheelectricgeneratingfacility,
26otherapplicablecapitalandoperatingcosts,accruedcarryingcharges,anddeferredexpenses,
27withtheforegoingtobereducedbyapplicabletaxbenefitsofaccumulatedandexcess
28deferredincometaxes,insurance,scrapandsalvageproceeds,andmayincludethecostof
29retiringanyexistingindebtedness,fees,costs,andexpensestomodifyexistingdebt
30agreementsorforwaiversorconsentsrelatedtoexistingdebtagreements;
31 (b)Pretaxcoststhatanelectricalcorporationhaspreviouslyincurredrelatedtothe
32retirementorabandonmentofsuchanelectricgeneratingfacilityoccurringbeforeAugust28,
332021;
34 (8)"Financingcosts"includesallofthefollowing:
HB713 12 35 (a)Interestandacquisition,defeasance,orredemptionpremiumspayableon
36securitizedutilitytariffbonds;
37 (b)Anypaymentrequiredunderanancillaryagreementandanyamountrequiredto
38fundorreplenishareserveaccountorotheraccountsestablishedunderthetermsofany
39indenture,ancillaryagreement,orotherfinancingdocumentspertainingtosecuritizedutility
40tariffbonds;
41 (c)Anyothercostrelatedtoissuing,supporting,repaying,refunding,andservicing
42securitizedutilitytariffbonds,includingservicingfees,accountingandauditingfees,trustee
43fees,legalfees,consultingfees,structuringadviserfees,administrativefees,placementand
44underwritingfees,independentdirectorandmanagerfees,capitalizedinterest,ratingagency
45fees,stockexchangelistingandcompliancefees,securityregistrationfees,filingfees,
46informationtechnologyprogrammingcosts,andanyothercostsnecessarytootherwise
47ensurethetimelypaymentofsecuritizedutilitytariffbondsorotheramountsorcharges
48payableinconnectionwiththebonds,includingcostsrelatedtoobtainingthefinancingorder;
49 (d)Anytaxesandlicensefeesorotherfeesimposedontherevenuesgeneratedfrom
50thecollectionofthesecuritizedutilitytariffchargeorotherwiseresultingfromthecollection
51ofsecuritizedutilitytariffcharges,inanysuchcasewhetherpaid,payable,oraccrued;
52 (e)Anystateandlocaltaxes,franchise,grossreceipts,andothertaxesorsimilar
53charges,includingcommissionassessmentfees,whetherpaid,payable,oraccrued;
54 (f)Anycostsassociatedwithperformanceofthecommission'sresponsibilitiesunder
55thissectioninconnectionwithapproving,approvingsubjecttoconditions,orrejectinga
56petitionforafinancingorder,andinperformingitsdutiesinconnectionwiththeissuance
57adviceletterprocess,includingcoststoretaincounsel,oneormorefinancialadvisors,or
58otherconsultantsasdeemedappropriatebythecommissionandpaidpursuanttothissection;
59 (9)"Financingorder",anorderfromthecommissionthatauthorizestheissuanceof
60securitizedutilitytariffbonds;theimposition,collection,andperiodicadjustmentsofa
61securitizedutilitytariffcharge;thecreationofsecuritizedutilitytariffproperty;andthesale,
62assignment,ortransferofsecuritizedutilitytariffpropertytoanassignee;
63 (10)"Financingparty",bondholdersandtrustees,collateralagents,anypartyunder
64anancillaryagreement,oranyotherpersonactingforthebenefitofbondholders;
65 (11)"Financingstatement",thesameasdefinedinarticle9ofthecode;
66 (12)"Pledgee",afinancingpartytowhichanelectricalcorporationoritssuccessors
67orassigneesmortgages,negotiates,pledges,orcreatesasecurityinterestorlienonallorany
68portionofitsinterestinorrighttosecuritizedutilitytariffproperty;
69 (13)"Qualifiedextraordinarycosts",costsincurredprudentlybefore,on,orafter
70August28,2021,ofanextraordinarynaturewhichwouldcauseextremecustomerrate
71impactsifreflectedinretailcustomerratesrecoveredthroughcustomaryratemaking,suchas
HB713 13 72butnotlimitedtothoserelatedtopurchasesoffuelorpower,inclusiveofcarryingcharges,
73duringanomalousweatherevents;
74 (14)"Ratebasecutoffdate",thesameasdefinedinsubdivision(4)ofsubsection1of
75section393.1400assuchtermexistedonAugust28,2021;
76 (15)"Securitizedutilitytariffbonds",bonds,debentures,notes,certificatesof
77participation,certificatesofbeneficialinterest,certificatesofownership,orotherevidences
78ofindebtednessorownershipthatareissuedbyanelectricalcorporationoranassignee
79pursuanttoafinancingorder,theproceedsofwhichareuseddirectlyorindirectlytorecover,
80finance,orrefinancecommission-approvedsecuritizedutilitytariffcostsandfinancingcosts,
81andthataresecuredbyorpayablefromsecuritizedutilitytariffproperty.Ifcertificatesof
82participationorownershipareissued,referencesinthissectiontoprincipal,interest,or
83premiumshallbeconstruedtorefertocomparableamountsunderthosecertificates;
84 (16)"Securitizedutilitytariffcharge",theamountsauthorizedbythecommissionto
85repay,finance,orrefinancesecuritizedutilitytariffcostsandfinancingcostsandthatare,
86exceptasotherwiseprovidedforinthissection,nonbypassablechargesimposedonandpart
87ofallretailcustomerbills,collectedbyanelectricalcorporationoritssuccessorsorassignees,
88oracollectionagent,infull,separateandapartfromtheelectricalcorporation'sbaserates,
89andpaidbyallexistingorfutureretailcustomersreceivingelectricalservicefromthe
90electricalcorporationoritssuccessorsorassigneesundercommission-approvedrate
91schedules,exceptforcustomersreceivingelectricalserviceunderspecialcontractsasof
92August28,2021,evenifaretailcustomerelectstopurchaseelectricityfromanalternative
93electricitysupplierfollowingafundamentalchangeinregulationofpublicutilitiesinthis
94state;
95 (17)"Securitizedutilitytariffcosts",eitherenergytransitioncostsorqualified
96extraordinarycostsasthecasemaybe;
97 (18)"Securitizedutilitytariffproperty",allofthefollowing:
98 (a)Allrightsandinterestsofanelectricalcorporationorsuccessororassigneeofthe
99electricalcorporationunderafinancingorder,includingtherighttoimpose,bill,charge,
100collect,andreceivesecuritizedutilitytariffchargesauthorizedunderthefinancingorderand
101toobtainperiodicadjustmentstosuchchargesasprovidedinthefinancingorder;
102 (b)Allrevenues,collections,claims,rightstopayments,payments,money,or
103proceedsarisingfromtherightsandinterestsspecifiedinthefinancingorder,regardlessof
104whethersuchrevenues,collections,claims,rightstopayment,payments,money,orproceeds
105areimposed,billed,received,collected,ormaintainedtogetherwithorcommingledwith
106otherrevenues,collections,rightstopayment,payments,money,orproceeds;
107 (19)"Specialcontract",electricalserviceprovidedunderthetermsofaspecial
108incrementalloadratescheduleatafixedpricerateapprovedbythecommission.
HB713 14 109 2.(1)Anelectricalcorporationmaypetitionthecommissionforafinancingorderto
110financeenergytransitioncoststhroughanissuanceofsecuritizedutilitytariffbonds.The
111petitionshallincludeallofthefollowing:
112 (a)Adescriptionoftheelectricgeneratingfacilityorfacilitiesthattheelectrical
113corporationhasretiredorabandoned,orproposestoretireorabandon,priortothedatethat
114allundepreciatedinvestmentrelatingtheretohasbeenrecoveredthroughratesandthereasons
115forundertakingsuchearlyretirementorabandonment,oriftheelectricalcorporationis
116subjecttoaseparatecommissionorderorproceedingrelatingtosuchretirementor
117abandonmentascontemplatedbysubdivision(2)ofthissubsection,andadescriptionofthe
118orderorotherproceeding;
119 (b)Theenergytransitioncosts;
120 (c)Anindicatorofwhethertheelectricalcorporationproposestofinanceallora
121portionoftheenergytransitioncostsusingsecuritizedutilitytariffbonds.Iftheelectrical
122corporationproposestofinanceaportionofthecosts,theelectricalcorporationshallidentify
123thespecificportioninthepetition.Byelectingnottofinancealloranyportionofsuch
124energytransitioncostsusingsecuritizedutilitytariffbonds,anelectricalcorporationshallnot
125bedeemedtowaiveitsrighttorecoversuchcostspursuanttoaseparateproceedingwiththe
126commission;
127 (d)Anestimateofthefinancingcostsrelatedtothesecuritizedutilitytariffbonds;
128 (e)Anestimateofthesecuritizedutilitytariffchargesnecessarytorecoverthe
129securitizedutilitytariffcostsandfinancingcostsandtheperiodforrecoveryofsuchcosts;
130 (f)Acomparisonbetweenthenetpresentvalueofthecoststocustomersthatare
131estimatedtoresultfromtheissuanceofsecuritizedutilitytariffbondsandthecoststhatwould
132resultfromtheapplicationofthetraditionalmethodoffinancingandrecoveringthe
133undepreciatedinvestmentoffacilitiesthatmaybecomesecuritizedutilitytariffcostsfrom
134customers.Thecomparisonshoulddemonstratethattheissuanceofsecuritizedutilitytariff
135bondsandtheimpositionofsecuritizedutilitytariffchargesareexpectedtoprovide
136quantifiablenetpresentvaluebenefitstocustomers;
137 (g)Aproposedfutureratemakingprocesstoreconcileanydifferencesbetween
138securitizedutilitytariffcostsfinancedbysecuritizedutilitytariffbondsandthefinal
139securitizedcostsincurredbytheelectricalcorporationorassigneeprovidedthatanysuch
140reconciliationshallnotaffecttheamountofsecuritizedutilitytariffbondsortheassociated
141securitizedutilitytariffchargespaidbycustomers;and
142 (h)Directtestimonysupportingthepetition.
143 (2)Anelectricalcorporationmaypetitionthecommissionforafinancingorderto
144financequalifiedextraordinarycosts.Thepetitionshallincludeallofthefollowing:
HB713 15 145 (a)Adescriptionofthequalifiedextraordinarycosts,includingtheirmagnitude,the
146reasonsthosecostswereincurredbytheelectricalcorporationandtheretailcustomerrate
147impactthatwouldresultfromcustomaryratemakingtreatmentofsuchcosts;
148 (b)Anindicatorofwhethertheelectricalcorporationproposestofinanceallora
149portionofthequalifiedextraordinarycostsusingsecuritizedutilitytariffbonds.Ifthe
150electricalcorporationproposestofinanceaportionofthecosts,theelectricalcorporation
151shallidentifythespecificportioninthepetition.Byelectingnottofinancealloranyportion
152ofsuchqualifiedextraordinarycostsusingsecuritizedutilitytariffbonds,anelectrical
153corporationshallnotbedeemedtowaiveitsrighttoreflectsuchcostsinitsretailrates
154pursuanttoaseparateproceedingwiththecommission;
155 (c)Anestimateofthefinancingcostsrelatedtothesecuritizedutilitytariffbonds;
156 (d)Anestimateofthesecuritizedutilitytariffchargesnecessarytorecoverthe
157qualifiedextraordinarycostsandfinancingcostsandtheperiodforrecoveryofsuchcosts;
158 (e)Acomparisonbetweenthenetpresentvalueofthecoststocustomersthatare
159estimatedtoresultfromtheissuanceofsecuritizedutilitytariffbondsandthecoststhatwould
160resultfromtheapplicationofthecustomarymethodoffinancingandreflectingthequalified
161extraordinarycostsinretailcustomerrates.Thecomparisonshoulddemonstratethatthe
162issuanceofsecuritizedutilitytariffbondsandtheimpositionofsecuritizedutilitytariff
163chargesareexpectedtoprovidequantifiablenetpresentvaluebenefitstoretailcustomers;
164 (f)Aproposedfutureratemakingprocesstoreconcileanydifferencesbetween
165securitizedutilitytariffcostsfinancedbysecuritizedutilitytariffbondsandthefinal
166securitizedcostsincurredbytheelectricalcorporationorassigneeprovidedthatanysuch
167reconciliationshallnotaffecttheamountofsecuritizedutilitytariffbondsortheassociated
168securitizedutilitytariffchargespaidbycustomers;and
169 (g)Directtestimonysupportingthepetition.
170 (3)(a)Proceedingsonapetitionsubmittedpursuanttothissubsectionbeginwiththe
171petitionbyanelectricalcorporationandshallbedisposedofinaccordancewiththe
172requirementsofthissectionandtherulesofthecommission,exceptasfollows:
173 a.Thecommissionshallestablishaproceduralschedulethatpermitsacommission
174decisionnolaterthantwohundredfifteendaysafterthedatethepetitionisfiled;
175 b.Nolaterthantwohundredfifteendaysafterthedatethepetitionisfiled,the
176commissionshallissueafinancingorderapprovingthepetition,anorderapprovingthe
177petitionsubjecttoconditions,oranorderrejectingthepetition;provided,however,thatthe
178electricalcorporationshallprovidenoticeofintenttofileapetitionforafinancingorderto
179thecommissionnolessthansixtydaysinadvanceofsuchfiling;
180 c.Judicialreviewofafinancingordermaybehadonlyinaccordancewithsections
181386.500and386.510.
HB713 16 182 (b)Inperformingitsresponsibilitiesunderthissectioninapproving,approving
183subjecttoconditions,orrejectingapetitionforafinancingorder,thecommissionmayretain
184counsel,oneormorefinancialadvisors,orotherconsultantsasitdeemsappropriate.Such
185outsidecounsel,advisororadvisors,orconsultantsshalloweadutyofloyaltysolelytothe
186commissionandshallhavenointerestintheproposedsecuritizedutilitytariffbonds.The
187costsassociatedwithanysuchengagementsshallbepaidbythepetitioningcorporationand
188shallbeincludedasfinancedcostsinthesecuritizedutilitytariffchargeandshallnotbean
189obligationofthestateandshallbeassignedsolelytothesubjecttransaction.The
190commissionmaydirectlycontractcounsel,financialadvisors,orotherconsultantsas
191necessaryforeffectuatingthepurposesofthissection.Suchcontractingprocedures
192shallnotbesubjecttotheprovisionsofchapter34,howeverthecommissionshall
193establishapolicyforthebidprocess.Suchpolicyshallbepubliclyavailableandany
194informationrelatedtocontractsundertheestablishedpolicyshallbeincludedin
195publiclyavailableratecasedocumentation.
196 (c)Afinancingorderissuedbythecommission,afterahearing,toanelectrical
197corporationshallincludeallofthefollowingelements:
198 a.Theamountofsecuritizedutilitytariffcoststobefinancedusingsecuritizedutility
199tariffbondsandafindingthatrecoveryofsuchcostsisjustandreasonableandinthepublic
200interest.Thecommissionshalldescribeandestimatetheamountoffinancingcoststhatmay
201berecoveredthroughsecuritizedutilitytariffchargesandspecifytheperiodoverwhich
202securitizedutilitytariffcostsandfinancingcostsmayberecovered;
203 b.Afindingthattheproposedissuanceofsecuritizedutilitytariffbondsandthe
204impositionandcollectionofasecuritizedutilitytariffchargearejustandreasonableandin
205thepublicinterestandareexpectedtoprovidequantifiablenetpresentvaluebenefitsto
206customersascomparedtorecoveryofthecomponentsofsecuritizedutilitytariffcoststhat
207wouldhavebeenincurredabsenttheissuanceofsecuritizedutilitytariffbonds.
208Notwithstandinganyprovisionsofthissectiontothecontrary,inconsideringwhetherto
209findtheproposedissuanceofsecuritizedutilitytariffbondsandtheimpositionandcollection
210ofasecuritizedutilitytariffchargearejustandreasonableandinthepublicinterest,the
211commissionmayconsiderpreviousinstanceswhereithasissuedfinancingorderstothe
212petitioningelectricalcorporationandsuchelectricalcorporationhaspreviouslyissued
213securitizedutilitytariffbonds;
214 c.Afindingthattheproposedstructuringandpricingofthesecuritizedutilitytariff
215bondsarereasonablyexpectedtoresultinthelowestsecuritizedutilitytariffcharges
216consistentwithmarketconditionsatthetimethesecuritizedutilitytariffbondsarepricedand
217thetermsofthefinancingorder;
HB713 17 218 d.Arequirementthat,forsolongasthesecuritizedutilitytariffbondsareoutstanding
219anduntilallfinancingcostshavebeenpaidinfull,theimpositionandcollectionof
220securitizedutilitytariffchargesauthorizedunderafinancingordershallbenonbypassable
221andpaidbyallexistingandfutureretailcustomersreceivingelectricalservicefromthe
222electricalcorporationoritssuccessorsorassigneesundercommission-approvedrate
223schedulesexceptforcustomersreceivingelectricalserviceunderspecialcontractsonAugust
22428,2021,evenifaretailcustomerelectstopurchaseelectricityfromanalternativeelectric
225supplierfollowingafundamentalchangeinregulationofpublicutilitiesinthisstate;
226 e.Aformula-basedtrue-upmechanismformaking,atleastannually,expeditious
227periodicadjustmentsinthesecuritizedutilitytariffchargesthatcustomersarerequiredtopay
228pursuanttothefinancingorderandformakinganyadjustmentsthatarenecessarytocorrect
229foranyovercollectionorundercollectionofthechargesortootherwiseensurethetimely
230paymentofsecuritizedutilitytariffbondsandfinancingcostsandotherrequiredamountsand
231chargespayableunderthesecuritizedutilitytariffbonds;
232 f.Thesecuritizedutilitytariffpropertythatis,orshallbe,createdinfavorofan
233electricalcorporationoritssuccessorsorassigneesandthatshallbeusedtopayorsecure
234securitizedutilitytariffbondsandapprovedfinancingcosts;
235 g.Thedegreeofflexibilitytobeaffordedtotheelectricalcorporationinestablishing
236thetermsandconditionsofthesecuritizedutilitytariffbonds,including,butnotlimitedto,
237repaymentschedules,expectedinterestrates,andotherfinancingcosts;
238 h.Howsecuritizedutilitytariffchargeswillbeallocatedamongretailcustomer
239classes.Theinitialallocationshallremainineffectuntiltheelectricalcorporationcompletes
240ageneralrateproceeding,andoncethecommission'sorderfromthatgeneralrateproceeding
241becomesfinal,allsubsequentapplicationsofanadjustmentmechanismregardingsecuritized
242utilitytariffchargesshallincorporatechangesintheallocationofcoststocustomersas
243detailedinthecommission'sorderfromtheelectricalcorporation'smostrecentgeneralrate
244proceeding;
245 i.Arequirementthat,afterthefinaltermsofanissuanceofsecuritizedutilitytariff
246bondshavebeenestablishedandbeforetheissuanceofsecuritizedutilitytariffbonds,the
247electricalcorporationdeterminestheresultinginitialsecuritizedutilitytariffchargein
248accordancewiththefinancingorder,andthatsuchinitialsecuritizedutilitytariffchargebe
249finalandeffectiveupontheissuanceofsuchsecuritizedutilitytariffbondswithsuchcharge
250tobereflectedonacompliancetariffsheetbearingsuchcharge;
251 j.Amethodoftracingfundscollectedassecuritizedutilitytariffcharges,orother
252proceedsofsecuritizedutilitytariffproperty,determiningthatsuchmethodshallbedeemed
253themethodoftracingsuchfundsanddeterminingtheidentifiablecashproceedsofany
254securitizedutilitytariffpropertysubjecttoafinancingorderunderapplicablelaw;
HB713 18 255 k.Astatementspecifyingafutureratemakingprocesstoreconcileanydifferences
256betweentheactualsecuritizedutilitytariffcostsfinancedbysecuritizedutilitytariffbonds
257andthefinalsecuritizedutilitytariffcostsincurredbytheelectricalcorporationorassignee
258providedthatanysuchreconciliationshallnotaffecttheamountofsecuritizedutilitytariff
259bondsortheassociatedsecuritizedutilitytariffchargespaidbycustomers;
260 l.Aprocedurethatshallallowtheelectricalcorporationtoearnareturn,atthecostof
261capitalauthorizedfromtimetotimebythecommissionintheelectricalcorporation'srate
262proceedings,onanymoneysadvancedbytheelectricalcorporationtofundreserves,ifany,or
263capitalaccountsestablishedunderthetermsofanyindenture,ancillaryagreement,orother
264financingdocumentspertainingtothesecuritizedutilitytariffbonds;
265 m.Inafinancingordergrantingauthorizationtosecuritizeenergytransitioncostsor
266inafinancingordergrantingauthorizationtosecuritizequalifiedextraordinarycoststhat
267includeretiredorabandonedfacilitycosts,aprocedureforthetreatmentofaccumulated
268deferredincometaxesandexcessdeferredincometaxesinconnectionwiththeretiredor
269abandonedortoberetiredorabandonedelectricgeneratingfacility,orinconnectionwith
270retiredorabandonedfacilitiesincludedinqualifiedextraordinarycosts.Theaccumulated
271deferredincometaxes,includingexcessdeferredincometaxes,shallbeexcludedfromrate
272baseinfuturegeneralratecasesandthenettaxbenefitsrelatingtoamountsthatwillbe
273recoveredthroughtheissuanceofsecuritizedutilitytariffbondsshallbecreditedtoretail
274customersbyreducingtheamountofsuchsecuritizedutilitytariffbondsthatwouldotherwise
275beissued.Thecustomercreditshallincludethenetpresentvalueofthetaxbenefits,
276calculatedusingadiscountrateequaltotheexpectedinterestrateofthesecuritizedutility
277tariffbonds,fortheestimatedaccumulatedandexcessdeferredincometaxesatthetimeof
278securitizationincludingtimingdifferencescreatedbytheissuanceofsecuritizedutilitytariff
279bondsamortizedovertheperiodofthebondsmultipliedbytheexpectedinterestrateonsuch
280securitizedutilitytariffbonds;
281 n.Anoutsidedate,whichshallnotbeearlierthanoneyearafterthedatethefinancing
282orderisnolongersubjecttoappeal,whentheauthoritytoissuesecuritizedutilitytariffbonds
283grantedinsuchfinancingordershallexpire;and
284 o.Includeanyotherconditionsthatthecommissionconsidersappropriateandthatare
285notinconsistentwiththissection.
286 (d)Afinancingorderissuedtoanelectricalcorporationmayprovidethatcreationof
287theelectricalcorporation'ssecuritizedutilitytariffpropertyisconditionedupon,and
288simultaneouswith,thesaleorothertransferofthesecuritizedutilitytariffpropertytoan
289assigneeandthepledgeofthesecuritizedutilitytariffpropertytosecuresecuritizedutility
290tariffbonds.
HB713 19 291 (e)Ifthecommissionissuesafinancingorder,theelectricalcorporationshallfile
292withthecommissionatleastannuallyapetitionoraletterapplyingtheformula-basedtrue-up
293mechanismand,basedonestimatesofconsumptionforeachrateclassandother
294mathematicalfactors,requestingadministrativeapprovaltomaketheapplicable
295adjustments.Thereviewofthefilingshallbelimitedtodeterminingwhetherthereare
296anymathematicalorclericalerrorsintheapplicationoftheformula-basedtrue-upmechanism
297relatingtotheappropriateamountofanyovercollectionorundercollectionofsecuritized
298utilitytariffchargesandtheamountofanadjustment.Theadjustmentsshallensurethe
299recoveryofrevenuessufficienttoprovideforthepaymentofprincipal,interest,acquisition,
300defeasance,financingcosts,orredemptionpremiumandotherfees,costs,andchargesin
301respectofsecuritizedutilitytariffbondsapprovedunderthefinancingorder.Withinthirty
302daysafterreceivinganelectricalcorporation'srequestpursuanttothisparagraph,the
303commissionshalleitherapprovetherequestorinformtheelectricalcorporationofany
304mathematicalorclericalerrorsinitscalculation.Ifthecommissioninformstheelectrical
305corporationofmathematicalorclericalerrorsinitscalculation,theelectricalcorporationshall
306correctitserrorandrefileitsrequest.Thetimeframespreviouslydescribedinthisparagraph
307shallapplytoarefiledrequest.
308 (f)Atthetimeofanytransferofsecuritizedutilitytariffpropertytoanassigneeorthe
309issuanceofsecuritizedutilitytariffbondsauthorizedthereby,whicheverisearlier,afinancing
310orderisirrevocableand,exceptforchangesmadepursuanttotheformula-basedtrue-up
311mechanismauthorizedinthissection,thecommissionmaynotamend,modify,orterminate
312thefinancingorderbyanysubsequentactionorreduce,impair,postpone,terminate,or
313otherwiseadjustsecuritizedutilitytariffchargesapprovedinthefinancingorder.Afterthe
314issuanceofafinancingorder,theelectricalcorporationretainssolediscretionregarding
315whethertoassign,sell,orotherwisetransfersecuritizedutilitytariffpropertyortocause
316securitizedutilitytariffbondstobeissued,includingtherighttodeferorpostponesuch
317assignment,sale,transfer,orissuance.
318 (g)Thecommission,inafinancingorderandsubjecttotheissuanceadviceletter
319processunderparagraph(h)ofthissubdivision,shallspecifythedegreeofflexibilitytobe
320affordedtheelectricalcorporationinestablishingthetermsandconditionsforthesecuritized
321utilitytariffbondstoaccommodatechangesinmarketconditions,includingrepayment
322schedules,interestrates,financingcosts,collateralrequirements,requireddebtserviceand
323otherreservesandtheabilityoftheelectricalcorporation,atitsoption,toeffectaseriesof
324issuancesofsecuritizedutilitytariffbondsandcorrelatedassignments,sales,pledges,orother
325transfersofsecuritizedutilitytariffproperty.Anychangesmadeunderthisparagraphto
326termsandconditionsforthesecuritizedutilitytariffbondsshallbeinconformancewiththe
327financingorder.
HB713 20 328 (h)Astheactualstructureandpricingofthesecuritizedutilitytariffbondswillbe
329unknownatthetimethefinancingorderisissued,priortotheissuanceofeachseriesof
330bonds,anissuanceadvicelettershallbeprovidedtothecommissionbytheelectrical
331corporationfollowingthedeterminationofthefinaltermsofsuchseriesofbondsnolater
332thanonedayafterthepricingofthesecuritizedutilitytariffbonds.Thecommissionshall
333havetheauthoritytodesignatearepresentativeorrepresentativesfromcommissionstaff,who
334maybeadvisedbyafinancialadvisororadvisorscontractedwiththecommission,toprovide
335inputtotheelectricalcorporationandcollaboratewiththeelectricalcorporationinallfacets
336oftheprocessundertakenbytheelectricalcorporationtoplacethesecuritizedutilitytariff
337bondstomarketsothecommission'srepresentativeorrepresentativescanprovidethe
338commissionwithanopiniononthereasonablenessofthepricing,terms,andconditionsofthe
339securitizedutilitytariffbondsonanexpeditedbasis.Neitherthedesignatedrepresentativeor
340representativesfromthecommissionstaffnoroneormorefinancialadvisorsadvising
341commissionstaffshallhaveauthoritytodirecthowtheelectricalcorporationplacesthebonds
342tomarketalthoughtheyshallbepermittedtoattendallmeetingsconvenedbytheelectrical
343corporationtoaddressplacementofthebondstomarket.Theformofsuchissuanceadvice
344lettershallbeincludedinthefinancingorderandshallindicatethefinalstructureofthe
345securitizedutilitytariffbondsandprovidethebestavailableestimateoftotalongoing
346financingcosts.Theissuanceadvicelettershallreporttheinitialsecuritizedutilitytariff
347chargesandotherinformationspecifictothesecuritizedutilitytariffbondstobeissued,asthe
348commissionmayrequire.Unlessanearlierdateisspecifiedinthefinancingorder,the
349electricalcorporationmayproceedwiththeissuanceofthesecuritizedutilitytariffbonds
350unless,priortonoononthefourthbusinessdayafterthecommissionreceivestheissuance
351adviceletter,thecommissionissuesadisapprovalletterdirectingthatthebondsasproposed
352shallnotbeissuedandthebasisforthatdisapproval.Thefinancingordermayprovidesuch
353additionalprovisionsrelatingtotheissuanceadviceletterprocessasthecommission
354considersappropriateandasarenotinconsistentwiththissection.
355 (4)(a)Inperformingtheresponsibilitiesofthissectioninconnectionwiththe
356issuanceofafinancingorder,approvingthepetition,anorderapprovingthepetitionsubject
357toconditions,oranorderrejectingthepetition,thecommissionshallundertakeduediligence
358asitdeemsappropriatepriortotheissuanceoftheorderregardingthepetitionpursuantto
359whichthecommissionmayrequestadditionalinformationfromtheelectricalcorporationand
360mayengageoneormorefinancialadvisors,oneormoreconsultants,andcounselasthe
361commissiondeemsnecessary.Anyfinancialadvisororadvisors,counsel,andconsultants
362engagedbythecommissionshallhaveafiduciarydutywithrespecttotheproposedissuance
363ofsecuritizedutilitybondssolelytothecommission.Allexpensesassociatedwithsuch
HB713 21 364servicesshallbeincludedaspartofthefinancingcostsofthesecuritizedutilitytariffbonds
365andshallbeincludedinthesecuritizedutilitytariffcharge.
366 (b)Ifanelectricalcorporation'spetitionforafinancingorderisdeniedorwithdrawn,
367orforanyreasonsecuritizedutilitytariffbondsarenotissued,anycostsofretainingoneor
368morefinancialadvisors,oneormoreconsultants,andcounselonbehalfofthecommission
369shallbepaidbythepetitioningelectricalcorporationandshallbeeligibleforfullrecovery,
370includingcarryingcosts,ifapprovedbythecommissionintheelectricalcorporation'sfuture
371rates.
372 (5)Attherequestofanelectricalcorporation,thecommissionmaycommencea
373proceedingandissueasubsequentfinancingorderthatprovidesforrefinancing,retiring,or
374refundingsecuritizedutilitytariffbondsissuedpursuanttotheoriginalfinancingorderifthe
375commissionfindsthatthesubsequentfinancingordersatisfiesallofthecriteriaspecifiedin
376thissectionforafinancingorder.Effectiveuponretirementoftherefundedsecuritizedutility
377tariffbondsandtheissuanceofnewsecuritizedutilitytariffbonds,thecommissionshall
378adjusttherelatedsecuritizedutilitytariffchargesaccordingly.
379 (6)(a)Afinancingorderremainsineffectandsecuritizedutilitytariffpropertyunder
380thefinancingordercontinuestoexistuntilsecuritizedutilitytariffbondsissuedpursuantto
381thefinancingorderhavebeenpaidinfullordefeasedand,ineachcase,allcommission-
382approvedfinancingcostsofsuchsecuritizedutilitytariffbondshavebeenrecoveredinfull.
383 (b)Afinancingorderissuedtoanelectricalcorporationremainsineffectand
384unabatednotwithstandingthereorganization,bankruptcy,orotherinsolvencyproceedings,
385merger,orsaleoftheelectricalcorporationoritssuccessorsorassignees.
386 3.(1)Thecommissionmaynot,inexercisingitspowersandcarryingoutitsduties
387regardinganymatterwithinitsauthority,considerthesecuritizedutilitytariffbondsissued
388pursuanttoafinancingordertobethedebtoftheelectricalcorporationotherthanforfederal
389andstateincometaxpurposes,considerthesecuritizedutilitytariffchargespaidunderthe
390financingordertobetherevenueoftheelectricalcorporationforanypurpose,considerthe
391securitizedutilitytariffcostsorfinancingcostsspecifiedinthefinancingordertobethecosts
392oftheelectricalcorporation,normaythecommissiondetermineanyactiontakenbyan
393electricalcorporationwhichisconsistentwiththefinancingordertobeunjustor
394unreasonable,andsection386.300shallnotapplytotheissuanceofsecuritizedutility
395tariffbonds.
396 (2)Securitizedutilitytariffchargesshallnotbeutilizedoraccountedforin
397determiningtheelectricalcorporation'saverageoverallrate,asdefinedinsection393.1655
398andasusedtodeterminethemaximumretailrateimpactlimitationsprovidedforby
399subsections3and4ofsection393.1655.
HB713 22 400 (3)Noelectricalcorporationisrequiredtofileapetitionforafinancingorderunder
401thissectionorotherwiseutilizethissection.Anelectricalcorporation'sdecisionnottofilea
402petitionforafinancingorderunderthissectionshallnotbeadmissibleinanycommission
403proceedingnorshallitbeotherwiseutilizedorreliedonbythecommissioninanyproceeding
404respectingtheelectricalcorporation'sratesoritsaccounting,including,withoutlimitation,
405anygeneralrateproceeding,fueladjustmentclausedocket,orproceedingsrelatingto
406accountingauthority,whetherinitiatedbytheelectricalcorporationorotherwise.The
407commissionmaynotorderorotherwisedirectlyorindirectlyrequireanelectricalcorporation
408tousesecuritizedutilitytariffbondstorecoversecuritizedutilitytariffcostsortofinanceany
409project,addition,plant,facility,extension,capitalimprovement,equipment,oranyother
410expenditure.
411 (4)Thecommissionmaynotrefusetoallowanelectricalcorporationtorecover
412securitizedutilitytariffcostsinanotherwisepermissiblefashion,orrefuseorcondition
413authorizationorapprovaloftheissuanceandsalebyanelectricalcorporationofsecuritiesor
414theassumptionbytheelectricalcorporationofliabilitiesorobligations,becauseofthe
415potentialavailabilityofsecuritizedutilitytariffbondfinancing.
416 (5)Aftertheissuanceofafinancingorderwithorwithoutconditions,theelectrical
417corporationretainssolediscretionregardingwhethertocausethesecuritizedutilitytariff
418bondstobeissued,includingtherighttodeferorpostponesuchsale,assignment,transfer,or
419issuance.Nothingshallpreventtheelectricalcorporationfromabandoningtheissuanceof
420securitizedutilitytariffbondsunderthefinancingorderbyfilingwiththecommissiona
421statementofabandonmentandthereasonstherefor;provided,thattheelectricalcorporation's
422abandonmentdecisionshallnotbedeemedimprudentbecauseofthepotentialavailabilityof
423securitizedutilitytariffbondfinancing;andprovidedfurther,thatanelectricalcorporation's
424decisiontoabandonissuanceofsuchbondsmayberaisedbyanyparty,includingthe
425commission,asareasonthecommissionshouldnotauthorize,orshouldmodify,therate-
426makingtreatmentproposedbytheelectricalcorporationofthecostsassociatedwiththe
427electricgeneratingfacilitythatwasthesubjectofapetitionunderthissectionthatwouldhave
428beensecuritizedasenergytransitioncostshadsuchabandonmentdecisionnotbeenmade,but
429onlyiftheelectricalcorporationrequestsnonstandardplantretirementtreatmentofsuchcosts
430forrate-makingpurposes.
431 (6)Thecommissionmaynot,directlyorindirectly,utilizeorconsiderthedebt
432reflectedbythesecuritizedutilitytariffbondsinestablishingtheelectricalcorporation's
433capitalstructureusedtodetermineanyregulatorymatter,includingbutnotlimitedtothe
434electricalcorporation'srevenuerequirementusedtosetitsrates.
435 (7)Thecommissionmaynot,directlyorindirectly,considertheexistenceof
436securitizedutilitytariffbondsorthepotentialuseofsecuritizedutilitytariffbondfinancing
HB713 23 437proceedsindeterminingtheelectricalcorporation'sauthorizedrateofreturnusedto
438determinetheelectricalcorporation'srevenuerequirementusedtosetitsrates.
439 4.Theelectricbillsofanelectricalcorporationthathasobtainedafinancingorder
440andcausedsecuritizedutilitytariffbondstobeissuedshallcomplywiththeprovisionsofthis
441subsection;however,thefailureofanelectricalcorporationtocomplywiththissubsection
442doesnotinvalidate,impair,oraffectanyfinancingorder,securitizedutilitytariffproperty,
443securitizedutilitytariffcharge,orsecuritizedutilitytariffbonds.Theelectricalcorporation
444shalldothefollowing:
445 (1)Explicitlyreflectthataportionofthechargesonsuchbillrepresentssecuritized
446utilitytariffchargesapprovedinafinancingorderissuedtotheelectricalcorporationand,if
447thesecuritizedutilitytariffpropertyhasbeentransferredtoanassignee,shallincludea
448statementtotheeffectthattheassigneeistheowneroftherightstosecuritizedutilitytariff
449chargesandthattheelectricalcorporationorotherentity,ifapplicable,isactingasa
450collectionagentorservicerfortheassignee.Thetariffapplicabletocustomersshallindicate
451thesecuritizedutilitytariffchargeandtheownershipofthecharge;
452 (2)Includethesecuritizedutilitytariffchargeoneachcustomer'sbillasaseparate
453lineitemandincludeboththerateandtheamountofthechargeoneachbill.
454 5.(1)(a)Allsecuritizedutilitytariffpropertythatisspecifiedinafinancingorder
455constitutesanexisting,presentintangiblepropertyrightorinteresttherein,notwithstanding
456thattheimpositionandcollectionofsecuritizedutilitytariffchargesdependsontheelectrical
457corporation,towhichthefinancingorderisissued,performingitsservicingfunctionsrelating
458tothecollectionofsecuritizedutilitytariffchargesandonfutureelectricityconsumption.
459Thepropertyexists:
460 a.Regardlessofwhetherornottherevenuesorproceedsarisingfromtheproperty
461havebeenbilled,haveaccrued,orhavebeencollected;and
462 b.Notwithstandingthefactthatthevalueoramountofthepropertyisdependenton
463thefutureprovisionofservicetocustomersbytheelectricalcorporationoritssuccessorsor
464assigneesandthefutureconsumptionofelectricitybycustomers.
465 (b)Securitizedutilitytariffpropertyspecifiedinafinancingorderexistsuntil
466securitizedutilitytariffbondsissuedpursuanttothefinancingorderarepaidinfullandall
467financingcostsandothercostsofsuchsecuritizedutilitytariffbondshavebeenrecoveredin
468full.
469 (c)Alloranyportionofsecuritizedutilitytariffpropertyspecifiedinafinancing
470orderissuedtoanelectricalcorporationmaybetransferred,sold,conveyed,orassignedtoa
471successororassigneethatiswhollyowned,directlyorindirectly,bytheelectricalcorporation
472andcreatedforthelimitedpurposeofacquiring,owning,oradministeringsecuritizedutility
473tariffpropertyorissuingsecuritizedutilitytariffbondsunderthefinancingorder.Allorany
HB713 24 474portionofsecuritizedutilitytariffpropertymaybepledgedtosecuresecuritizedutilitytariff
475bondsissuedpursuanttothefinancingorder,amountspayabletofinancingpartiesandto
476counterpartiesunderanyancillaryagreements,andotherfinancingcosts.Anytransfer,sale,
477conveyance,assignment,grantofasecurityinterestinorpledgeofsecuritizedutilitytariff
478propertybyanelectricalcorporation,oranaffiliateoftheelectricalcorporation,toan
479assignee,totheextentpreviouslyauthorizedinafinancingorder,doesnotrequiretheprior
480consentandapprovalofthecommission.
481 (d)Ifanelectricalcorporationdefaultsonanyrequiredremittanceofsecuritized
482utilitytariffchargesarisingfromsecuritizedutilitytariffpropertyspecifiedinafinancing
483order,acourt,uponapplicationbyaninterestedparty,andwithoutlimitinganyother
484remediesavailabletotheapplyingparty,shallorderthesequestrationandpaymentofthe
485revenuesarisingfromthesecuritizedutilitytariffpropertytothefinancingpartiesortheir
486assignees.Anysuchfinancingorderremainsinfullforceandeffectnotwithstandingany
487reorganization,bankruptcy,orotherinsolvencyproceedingswithrespecttotheelectrical
488corporationoritssuccessorsorassignees.
489 (e)Theinterestofatransferee,purchaser,acquirer,assignee,orpledgeeinsecuritized
490utilitytariffpropertyspecifiedinafinancingorderissuedtoanelectricalcorporation,andin
491therevenueandcollectionsarisingfromthatproperty,isnotsubjecttosetoff,counterclaim,
492surcharge,ordefensebytheelectricalcorporationoranyotherpersonorinconnectionwith
493thereorganization,bankruptcy,orotherinsolvencyoftheelectricalcorporationoranyother
494entity.
495 (f)Anysuccessortoanelectricalcorporation,whetherpursuanttoanyreorganization,
496bankruptcy,orotherinsolvencyproceedingorwhetherpursuanttoanymergeroracquisition,
497sale,orotherbusinesscombination,ortransferbyoperationoflaw,asaresultofelectrical
498corporationrestructuringorotherwise,shallperformandsatisfyallobligationsof,andhave
499thesamerightsunderafinancingorderas,theelectricalcorporationunderthefinancingorder
500inthesamemannerandtothesameextentastheelectricalcorporation,includingcollecting
501andpayingtothepersonentitledtoreceivetherevenues,collections,payments,orproceeds
502ofthesecuritizedutilitytariffproperty.Nothinginthissectionisintendedtolimitorimpair
503anyauthorityofthecommissionconcerningthetransferorsuccessionofinterestsofpublic
504utilities.
505 (g)Securitizedutilitytariffbondsshallbenonrecoursetothecreditoranyassetsof
506theelectricalcorporationotherthanthesecuritizedutilitytariffpropertyasspecifiedinthe
507financingorderandanyrightsunderanyancillaryagreement.
508 (2)(a)Thecreation,perfection,priority,andenforcementofanysecurityinterestin
509securitizedutilitytariffpropertytosecuretherepaymentoftheprincipalandinterestand
510otheramountspayableinrespectofsecuritizedutilitytariffbonds,amountspayableunder
HB713 25 511anyancillaryagreementandotherfinancingcostsaregovernedbythissectionandnotbythe
512provisionsofthecode,exceptasotherwiseprovidedinthissection.
513 (b)Asecurityinterestinsecuritizedutilitytariffpropertyiscreated,valid,and
514bindingatthelaterofthetime:
515 a.Thefinancingorderisissued;
516 b.Asecurityagreementisexecutedanddeliveredbythedebtorgrantingsuch
517securityinterest;
518 c.Thedebtorhasrightsinsuchsecuritizedutilitytariffpropertyorthepowerto
519transferrightsinsuchsecuritizedutilitytariffproperty;or
520 d.Valueisreceivedforthesecuritizedutilitytariffproperty.
521
522Thedescriptionofsecuritizedutilitytariffpropertyinasecurityagreementissufficientifthe
523descriptionreferstothissectionandthefinancingordercreatingthesecuritizedutilitytariff
524property.Asecurityinterestshallattachasprovidedinthisparagraphwithoutanyphysical
525deliveryofcollateralorotheract.
526 (c)Uponthefilingofafinancingstatementwiththeofficeofthesecretaryofstateas
527providedinthissection,asecurityinterestinsecuritizedutilitytariffpropertyshallbe
528perfectedagainstallpartieshavingclaimsofanykindintort,contract,orotherwiseagainst
529thepersongrantingthesecurityinterest,andregardlessofwhetherthepartieshavenoticeof
530thesecurityinterest.Withoutlimitingtheforegoing,uponsuchfilingasecurityinterestin
531securitizedutilitytariffpropertyshallbeperfectedagainstallclaimsofliencreditors,and
532shallhavepriorityoverallcompetingsecurityinterestsandotherclaimsotherthanany
533securityinterestpreviouslyperfectedinaccordancewiththissection.
534 (d)Thepriorityofasecurityinterestinsecuritizedutilitytariffpropertyisnot
535affectedbythecomminglingofsecuritizedutilitytariffchargeswithotheramounts.Any
536pledgeeorsecuredpartyshallhaveaperfectedsecurityinterestintheamountofall
537securitizedutilitytariffchargesthataredepositedinanycashordepositaccountofthe
538qualifyingelectricalcorporationinwhichsecuritizedutilitytariffchargeshavebeen
539commingledwithotherfundsandanyothersecurityinterestthatmayapplytothosefunds
540shallbeterminatedwhentheyaretransferredtoasegregatedaccountfortheassigneeora
541financingparty.
542 (e)Noapplicationoftheformula-basedtrue-upmechanismasprovidedinthis
543sectionwillaffectthevalidity,perfection,orpriorityofasecurityinterestinortransferof
544securitizedutilitytariffproperty.
545 (f)Ifadefaultoccursunderthesecuritizedutilitytariffbondsthataresecuredbya
546securityinterestinsecuritizedutilitytariffproperty,thefinancingpartiesortheir
547representativesmayexercisetherightsandremediesavailabletoasecuredpartyunderthe
HB713 26 548code,includingtherightsandremediesavailableunderpart6ofarticle9ofthecode.The
549commissionmayalsoorderamountsarisingfromsecuritizedutilitytariffchargesbe
550transferredtoaseparateaccountforthefinancingparties'benefit,towhichtheirlienand
551securityinterestshallapply.Onapplicationbyoronbehalfofthefinancingparties,the
552circuitcourtforthecountyorcityinwhichtheelectricalcorporation'sheadquartersislocated
553shallorderthesequestrationandpaymenttothemofrevenuesarisingfromthesecuritized
554utilitytariffcharges.
555 (3)(a)Anysale,assignment,orothertransferofsecuritizedutilitytariffproperty
556shallbeanabsolutetransferandtruesaleof,andnotapledgeoforsecuredtransaction
557relatingto,theseller'sright,title,andinterestin,to,andunderthesecuritizedutilitytariff
558propertyifthedocumentsgoverningthetransactionexpresslystatethatthetransactionisa
559saleorotherabsolutetransferotherthanforfederalandstateincometaxpurposes.Forall
560purposesotherthanfederalandstateincometaxpurposes,theparties'characterizationofa
561transactionasasaleofaninterestinsecuritizedutilitytariffpropertyshallbeconclusivethat
562thetransactionisatruesaleandthatownershiphaspassedtothepartycharacterizedasthe
563purchaser,regardlessofwhetherthepurchaserhaspossessionofanydocumentsevidencing
564orpertainingtotheinterest.Asaleorsimilaroutrighttransferofaninterestinsecuritized
565utilitytariffpropertymayoccuronlywhenallofthefollowinghaveoccurred:
566 a.Thefinancingordercreatingthesecuritizedutilitytariffpropertyhasbecome
567effective;
568 b.Thedocumentsevidencingthetransferofsecuritizedutilitytariffpropertyhave
569beenexecutedbytheassignoranddeliveredtotheassignee;and
570 c.Valueisreceivedforthesecuritizedutilitytariffproperty.
571
572Aftersuchatransaction,thesecuritizedutilitytariffpropertyisnotsubjecttoanyclaimsof
573thetransferororthetransferor'screditors,otherthancreditorsholdingapriorsecurityinterest
574inthesecuritizedutilitytariffpropertyperfectedinaccordancewiththissection.
575 (b)Thecharacterizationofthesale,assignment,orothertransferasanabsolute
576transferandtruesaleandthecorrespondingcharacterizationofthepropertyinterestofthe
577purchasershallnotbeaffectedorimpairedbytheoccurrenceofanyofthefollowingfactors:
578 a.Comminglingofsecuritizedutilitytariffchargeswithotheramounts;
579 b.Theretentionbythesellerof(i)apartialorresidualinterest,includinganequity
580interest,inthesecuritizedutilitytariffproperty,whetherdirectorindirect,orwhether
581subordinateorotherwise,or(ii)therighttorecovercostsassociatedwithtaxes,franchise
582fees,orlicensefeesimposedonthecollectionofsecuritizedutilitytariffcharges;
583 c.Anyrecoursethatthepurchasermayhaveagainsttheseller;
HB713 27 584 d.Anyindemnificationrights,obligations,orrepurchaserightsmadeorprovidedby
585theseller;
586 e.Theobligationofthesellertocollectsecuritizedutilitytariffchargesonbehalfof
587anassignee;
588 f.Thetransferoractingastheservicerofthesecuritizedutilitytariffchargesorthe
589existenceofanycontractthatauthorizesorrequirestheelectricalcorporation,totheextent
590thatanyinterestinsecuritizedutilitytariffpropertyissoldorassigned,tocontractwiththe
591assigneeoranyfinancingpartythatitwillcontinuetooperateitssystemtoprovideserviceto
592itscustomers,willcollectamountsinrespectofthesecuritizedutilitytariffchargesforthe
593benefitandaccountofsuchassigneeorfinancingparty,andwillaccountforandremitsuch
594amountstoorfortheaccountofsuchassigneeorfinancingparty;
595 g.Thetreatmentofthesale,conveyance,assignment,orothertransferfortax,
596financialreporting,orotherpurposes;
597 h.Thegrantingorprovidingtobondholdersapreferredrighttothesecuritizedutility
598tariffpropertyorcreditenhancementbytheelectricalcorporationoritsaffiliateswithrespect
599tosuchsecuritizedutilitytariffbonds;
600 i.Anyapplicationoftheformula-basedtrue-upmechanismasprovidedinthis
601section.
602 (c)Anyrightthatanelectricalcorporationhasinthesecuritizedutilitytariffproperty
603beforeitspledge,sale,ortransferoranyotherrightcreatedunderthissectionorcreatedinthe
604financingorderandassignableunderthissectionorassignablepursuanttoafinancingorder
605ispropertyintheformofacontractrightorachoseinaction.Transferofaninterestin
606securitizedutilitytariffpropertytoanassigneeisenforceableonlyuponthelaterof:
607 a.Theissuanceofafinancingorder;
608 b.Theassignorhavingrightsinsuchsecuritizedutilitytariffpropertyorthepowerto
609transferrightsinsuchsecuritizedutilitytariffpropertytoanassignee;
610 c.Theexecutionanddeliverybytheassignoroftransferdocumentsinconnection
611withtheissuanceofsecuritizedutilitytariffbonds;and
612 d.Thereceiptofvalueforthesecuritizedutilitytariffproperty.
613
614Anenforceabletransferofaninterestinsecuritizedutilitytariffpropertytoanassigneeis
615perfectedagainstallthirdparties,includingsubsequentjudicialorotherliencreditors,whena
616noticeofthattransferhasbeengivenbythefilingofafinancingstatementinaccordancewith
617subsection7ofthissection.Thetransferisperfectedagainstthirdpartiesasofthedateof
618filing.
619 (d)Thepriorityofatransferperfectedunderthissectionisnotimpairedbyanylater
620modificationofthefinancingorderorsecuritizedutilitytariffpropertyorbythecommingling
HB713 28 621offundsarisingfromsecuritizedutilitytariffpropertywithotherfunds.Anyothersecurity
622interestthatmayapplytothosefunds,otherthanasecurityinterestperfectedunderthis
623section,isterminatedwhentheyaretransferredtoasegregatedaccountfortheassigneeora
624financingparty.Ifsecuritizedutilitytariffpropertyhasbeentransferredtoanassigneeor
625financingparty,anyproceedsofthatpropertyshallbeheldintrustfortheassigneeor
626financingparty.
627 (e)Thepriorityoftheconflictinginterestsofassigneesinthesameinterestorrights
628inanysecuritizedutilitytariffpropertyisdeterminedasfollows:
629 a.Conflictingperfectedinterestsorrightsofassigneesrankaccordingtopriorityin
630timeofperfection.Prioritydatesfromthetimeafilingcoveringthetransferismadein
631accordancewithsubsection7ofthissection;
632 b.Aperfectedinterestorrightofanassigneehaspriorityoveraconflicting
633unperfectedinterestorrightofanassignee;
634 c.Aperfectedinterestorrightofanassigneehaspriorityoverapersonwhobecomes
635aliencreditoraftertheperfectionofsuchassignee'sinterestorright.
636 6.Thedescriptionofsecuritizedutilitytariffpropertybeingtransferredtoanassignee
637inanysaleagreement,purchaseagreement,orothertransferagreement,grantedorpledgedto
638apledgeeinanysecurityagreement,pledgeagreement,orothersecuritydocument,or
639indicatedinanyfinancingstatementisonlysufficientifsuchdescriptionorindicationrefers
640tothefinancingorderthatcreatedthesecuritizedutilitytariffpropertyandstatesthatthe
641agreementorfinancingstatementcoversallorpartofthepropertydescribedinthefinancing
642order.Thissectionappliestoallpurportedtransfersof,andallpurportedgrantsorliensor
643securityinterestsin,securitizedutilitytariffproperty,regardlessofwhethertherelatedsale
644agreement,purchaseagreement,othertransferagreement,securityagreement,pledge
645agreement,orothersecuritydocumentwasenteredinto,oranyfinancingstatementwasfiled.
646 7.Thesecretaryofstateshallmaintainanyfinancingstatementfiledtoperfectasale
647orothertransferofsecuritizedutilitytariffpropertyandanysecurityinterestinsecuritized
648utilitytariffpropertyunderthissectioninthesamemannerthatthesecretaryofstate
649maintainsfinancingstatementsfiledunderthecodetoperfectasecurityinterestincollateral
650ownedbyatransmittingutility.Exceptasotherwiseprovidedinthissection,allfinancing
651statementsfiledpursuanttothissectionshallbegovernedbytheprovisionsregarding
652financingstatementsandthefilingthereofunderthecode,includingpart5ofarticle9ofthe
653code.Asecurityinterestinsecuritizedutilitytariffpropertymaybeperfectedonlybythe
654filingofafinancingstatementinaccordancewiththissection,andnoothermethodof
655perfectionshallbeeffective.Notwithstandinganyprovisionofthecodetothecontrary,a
656financingstatementfiledpursuanttothissectioniseffectiveuntilaterminationstatementis
657filedunderthecode,andnocontinuationstatementneedbefiledtomaintainitseffectiveness.
HB713 29 658Afinancingstatementfiledpursuanttothissectionmayindicatethatthedebtorisa
659transmittingutility,andwithoutregardtowhetherthedebtorisanelectricalcorporation,an
660assigneeorotherwisequalifiesasatransmittingutilityunderthecode,butthefailuretomake
661suchindicationshallnotimpairthedurationandeffectivenessofthefinancingstatement.
662 8.Thelawgoverningthevalidity,enforceability,attachment,perfection,priority,and
663exerciseofremedieswithrespecttothetransferofaninterestorrightorthepledgeor
664creationofasecurityinterestinanysecuritizedutilitytariffpropertyshallbethelawsofthis
665state.
666 9.Neitherthestatenoritspoliticalsubdivisionsareliableonanysecuritizedutility
667tariffbonds,andthebondsarenotadebtorageneralobligationofthestateoranyofits
668politicalsubdivisions,agencies,orinstrumentalities,noraretheyspecialobligationsor
669indebtednessofthestateoranyagencyorpoliticalsubdivision.Anissueofsecuritizedutility
670tariffbondsdoesnot,directly,indirectly,orcontingently,obligatethestateoranyagency,
671politicalsubdivision,orinstrumentalityofthestatetolevyanytaxormakeanyappropriation
672forpaymentofthesecuritizedutilitytariffbonds,otherthanintheircapacityasconsumersof
673electricity.Allsecuritizedutilitytariffbondsshallcontainonthefacethereofastatementto
674thefollowingeffect:"Neitherthefullfaithandcreditnorthetaxingpowerofthestateof
675Missouriispledgedtothepaymentoftheprincipalof,orintereston,thisbond.".
676 10.Allofthefollowingentitiesmaylegallyinvestanysinkingfunds,moneys,or
677otherfundsinsecuritizedutilitytariffbonds:
678 (1)Subjecttoapplicablestatutoryrestrictionsonstateorlocalinvestmentauthority,
679thestate,unitsoflocalgovernment,politicalsubdivisions,publicbodies,andpublicofficers,
680exceptformembersofthecommission,thecommission'stechnicaladvisoryandotherstaff,
681oremployeesoftheofficeofthepubliccounsel;
682 (2)Banksandbankers,savingsandloanassociations,creditunions,trustcompanies,
683savingsbanksandinstitutions,investmentcompanies,insurancecompanies,insurance
684associations,andotherpersonscarryingonabankingorinsurancebusiness;
685 (3)Personalrepresentatives,guardians,trustees,andotherfiduciaries;
686 (4)Allotherpersonsauthorizedtoinvestinbondsorotherobligationsofasimilar
687nature.
688 11.(1)Thestateanditsagencies,includingthecommission,pledgeandagreewith
689bondholders,theownersofthesecuritizedutilitytariffproperty,andotherfinancingparties
690thatthestateanditsagencieswillnottakeanyactionlistedinthissubdivision.This
691subdivisiondoesnotprecludelimitationoralterationiffullcompensationismadebylawfor
692thefullprotectionofthesecuritizedutilitytariffchargescollectedpursuanttoafinancing
693orderandofthebondholdersandanyassigneeorfinancingpartyenteringintoacontractwith
694theelectricalcorporation.Theprohibitedactionsareasfollows:
HB713 30 695 (a)Altertheprovisionsofthissection,whichauthorizethecommissiontocreatean
696irrevocablecontractrightorchoseinactionbytheissuanceofafinancingorder,tocreate
697securitizedutilitytariffproperty,andmakethesecuritizedutilitytariffchargesimposedbya
698financingorderirrevocable,binding,ornonbypassablechargesforallexistingandfuture
699retailcustomersoftheelectricalcorporationexceptitsexistingspecialcontractcustomers;
700 (b)Takeorpermitanyactionthatimpairsorwouldimpairthevalueofsecuritized
701utilitytariffpropertyorthesecurityforthesecuritizedutilitytariffbondsorrevisesthe
702securitizedutilitytariffcostsforwhichrecoveryisauthorized;
703 (c)Inanywayimpairtherightsandremediesofthebondholders,assignees,andother
704financingparties;
705 (d)Exceptforchangesmadepursuanttotheformula-basedtrue-upmechanism
706authorizedunderthissection,reduce,alter,orimpairsecuritizedutilitytariffchargesthatare
707tobeimposed,billed,charged,collected,andremittedforthebenefitofthebondholders,any
708assignee,andanyotherfinancingpartiesuntilanyandallprincipal,interest,premium,
709financingcostsandotherfees,expenses,orchargesincurred,andanycontractstobe
710performed,inconnectionwiththerelatedsecuritizedutilitytariffbondshavebeenpaidand
711performedinfull.
712 (2)Anypersonorentitythatissuessecuritizedutilitytariffbondsmayincludethe
713languagespecifiedinthissubsectioninthesecuritizedutilitytariffbondsandrelated
714documentation.
715 12.Anassigneeorfinancingpartyisnotanelectricalcorporationorpersonproviding
716electricservicebyvirtueofengaginginthetransactionsdescribedinthissection.
717 13.Ifthereisaconflictbetweenthissectionandanyotherlawregardingthe
718attachment,assignment,orperfection,ortheeffectofperfection,orpriorityof,assignmentor
719transferof,orsecurityinterestinsecuritizedutilitytariffproperty,thissectionshallgovern.
720 14.Ifanyprovisionofthissectionisheldinvalidorisinvalidated,superseded,
721replaced,repealed,orexpiresforanyreason,thatoccurrencedoesnotaffectthevalidityof
722anyactionallowedunderthissectionwhichistakenbyanelectricalcorporation,anassignee,
723afinancingparty,acollectionagent,orapartytoanancillaryagreement;andanysuchaction
724remainsinfullforceandeffectwithrespecttoallsecuritizedutilitytariffbondsissuedor
725authorizedinafinancingorderissuedunderthissectionbeforethedatethatsuchprovisionis
726heldinvalidorisinvalidated,superseded,replaced,orrepealed,orexpiresforanyreason.
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HB713 31