FIRSTREGULARSESSION
HOUSEBILLNO.853
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEHURLBERT.
2153H.01I JOSEPHENGLER,ChiefClerk
ANACT
Torepealsection393.135,RSMo,andtoenactinlieuthereofthreenewsectionsrelatingto
electricalcorporations.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section393.135,RSMo,isrepealedandthreenewsectionsenactedinlieu
2thereof,tobeknownassections393.135,393.1080,and393.1090,toreadasfollows:
393.135.1.Exceptasprovidedinsubsection2ofthissection,anychargemadeor
2demandedbyanelectricalcorporationforservice,orinconnectiontherewith,whichisbased
3onthecostsofconstructioninprogressuponanyexistingornewfacilityoftheelectrical
4corporation,oranyothercostassociatedwithowning,operating,maintaining,orfinancing
5anypropertybeforeitisfullyoperationalandusedforservice,isunjustandunreasonable,
6andisprohibited.
7 2.(1)Anelectricalcorporationshallbepermitted,subjecttothelimitationsin
8thissubsection,toincludeconstructionworkinprogressforanynewnaturalgas-
9generatingunitinratebaseamountsrecorded.Theinclusionofconstructionworkin
10progressallowedunderthissubsectionshallbeinlieuofanyotherwiseapplicable
11allowanceforfundsusedduringconstructionthatwouldhaveaccruedfromandafter
12theeffectivedateofnewbaseratesthatreflectinclusionoftheconstructionworkin
13progressinratebase.Thecommissionshalldetermine,inaproceedingundersection
14393.170,theamountofconstructionworkinprogressthatmaybeincludedinratebase.
15Theamountshallbelimitedbytheestimatedcostofsuchprojectandproject
16expendituresmadewithintheestimatedconstructionperiodforsuchproject.Baserate
17recoveriesarisingfrominclusionofconstructionworkinprogressinbaseratesare
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18subjecttorefund,togetherwithinterestontherefundedamountatthesamerateasthe
19rateofinterestfordelinquenttaxesdeterminedbythedirectorofrevenueinaccordance
20withsection32.065,if,andtotheextentthecommissiondetermines,inasubsequent
21complaintorgeneralrateproceeding,thatconstructioncostsgivingrisetothe
22constructionworkinprogressincludedinratebasewereimprudentlyincurred.Return
23deferredundersubdivision(2)ofsubsection3ofsection393.1400forplantthathasbeen
24includedinbaseratesasconstructionworkinprogressshalloffsettheamountsdeferred
25undersection393.1400.
26 (2)ThissubsectionshallexpireonDecember31,2035,unlessthecommission
27determines,afterahearingconductedin2035,uponasubmissionfromanelectrical
28corporationofanapplicationrequestinganddemonstratingthatgoodcauseexiststo
29extendtheeffectivenessofthissubsectionthroughDecember31,2045.Thesecretaryof
30thecommissionshallnotifytherevisorofstatuteswhentheconditionssetforthforthe
31extensionofthissubsectionhavebeenmet.
393.1080.1.Thecommissionmayrequireelectricalcorporationstoprovide
2documentationannually,inaformatdeterminedbythecommission,reflectingitsplan
3toownorhaverightstosufficientcapacitytomeetitscapacityobligationsforthe
4upcomingplanningyearandeachofthethreesubsequentplanningyears.Electrical
5corporationsshallsubmitsuchdocumentation,whichshallincludeitscapacityposition
6fortheupcomingandthreesubsequentplanningyearsconsistentwithresource
7adequacyrequirementsoftheappropriateregionaltransmissionorganizationor
8independentsystemoperatororcommission,includingbyseasonorotherapplicable
9period,withinthirtydaysaftertheappropriateregionaltransmissionorganizationor
10independentsystemoperatororcommission,ifapplicable,makesafinaldetermination
11astotheelectricalcorporation’sresourceadequacyrequirementsfortheupcoming
12planningyear.
13 2.Thecommissionmayrequireanyadditionalauditsandreportingasthe
14commissionconsidersnecessarytodetermineifanelectricalcorporation’splanprovides
15forelectricalcorporationownershiporcontractualrightstosufficientcapacityforthe
16planningyearbeginningfouryearsafterthebeginningofthecurrentplanningyear.
17 3.Ifanelectricalcorporationfailstohavesufficientcapacityfortheupcoming
18planningyearanditisdeterminedbythecommissiontobetheresultoftheelectrical
19corporation’simprudence,thecommissionmaydisallow,afterahearing,anyassociated
20costsrelatedtosaidfailureinafutureproceeding.Thecommissionmayrequire
21submissionofaplanwithinsixmonthstoresolveanyexpectedcapacitydeficiencyfor
22thesubsequentthreeplanningyears.
23 4.Asusedinthissection,thefollowingtermsshallmean:
HB853 2 24 (1)"Appropriateregionaltransmissionorganizationorindependentsystem
25operator",theMidcontinentIndependentSystemOperatorortheSouthwestPower
26Pool,oranysuccessororganization;
27 (2)"Sufficientcapacity",ownedorcontracted-forcapacitythatmeetsthe
28planningreservemarginorsuccessormetricestablishedbytheappropriateregional
29transmissionorganizationorindependentsystemoperatoror,inthecaseofanelectrical
30corporationthatisnotaparticipantinaregionaltransmissionorganizationor
31independentsystemoperator,thatmeetstheplanningreservemarginorsuccessor
32metricestablishedbythecommission.
33 5.Thecommissionmaypromulgaterulesnecessarytoimplementtheprovisions
34ofthissection.Anyruleorportionofarule,asthattermisdefinedinsection536.010,
35thatiscreatedundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyif
36itcomplieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,
37section536.028.Thissectionandchapter536arenonseverableandifanyofthepowers
38vestedwiththegeneralassemblypursuanttochapter536toreview,todelaythe
39effectivedate,ortodisapproveandannularulearesubsequentlyheldunconstitutional,
40thenthegrantofrulemakingauthorityandanyruleproposedoradoptedafterAugust
4128,2025,shallbeinvalidandvoid.
393.1090.1.Thecommissionshall,byAugust28,2026,andeveryfouryearsor
2asneededthereafter,commenceanintegratedresourceplanningproceedingfor
3electricalcorporations,tobeconductedundertherulestobeadoptedtoimplementthis
4section.Aspartofsuchproceeding,thecommissionshall:
5 (1)Identifyanyrequiredplanningreservemarginsandapplicablelocalclearing
6requirementsandanyproposedplanningreservemarginsandlocalclearing
7requirementsthatarescheduledtotakeeffectwithinarelevantfuturetimeframe;
8 (2)Identifysignificantexistingorproposedstateorfederalenvironmental
9regulations,laws,orrulesandidentifyhoweachsuchregulation,law,orrulewould
10applytoelectricalcorporationsinthisstate;
11 (3)Establishanalternativeresourceplanorplansthatshallbeincludedin
12electricalcorporationintegratedresourcefilingsrequiredbysubsection3ofthissection
13andthefactorsthateachelectricalcorporationshouldtakeintoaccountindeveloping
14suchplansincluding,butnotlimitedto,allofthefollowing:
15 (a)Projectedplanningreservemarginsandlocalclearingrequirementsandthe
16environmentalregulations,laws,orrulesidentifiedinsubdivisions(1)and(2)ofthis
17subsection,respectively;
18 (b)Projectionsoffutureloads,includingbothenergyandcapacityoverthe
19planningperiod;
HB853 3 20 (c)Thesupply-sideanddemand-sideresourcesthatreasonablycouldaddress
21anyneedforadditionalenergyandcapacityincluding,butnotlimitedto,thetypeof
22generationtechnologyforanyproposedgenerationfacility,projectedloadimpactdueto
23electrificationoreconomicdevelopmentprojects,andprojectedloadmanagementand
24demandresponsesavings;
25 (d)Theprojectedcostofdifferenttypesoftechnologiesandfuelusedforelectric
26generation;and
27 (e)Anyotherfactorsthecommissionmayordertobeconsidered;
28 (4)Identifyordesignateanysoftware,datastandards,andformattingtobeused
29inmodelingthealternativeresourceplanorplansundersubdivision(3)ofthis
30subsection;and
31 (5)Completesuchproceedingnolessthaneighteenmonthspriortothefirst
32integratedresourceplanfilingprovidedforbysubsection2ofthissection.
33 2.NotlaterthanAugust28,2027,thecommissionshall,underrulestobe
34adoptedtoimplementthissection,publishascheduleforelectricalcorporationstofile
35integratedresourceplanseveryfouryears,withthefirstintegratedresourceplanfiling
36tooccurnotbeforethefirstdayofthenineteenthmonthafterpublicationofsuch
37schedule.Eachelectricalcorporationshall,accordingtothepublishedschedule,file
38withthecommissionanintegratedresourceplanthatincludesanalternativeresource
39planorplansmeetingtherequirementsofsubdivision(3)ofsubsection1ofthissection
40andsuchotheralternativeresourceplansastheelectricalcorporationdeems
41appropriate.Allalternativeresourceplansshallcoveraminimumsixteen-year
42planninghorizon.Allsuchplansshallreflectprojectionsofthecorporation’sload
43obligationsandhowundereachsuchplantheelectricalcorporationwouldreliablymeet
44itsprojectedloadobligationsoversuchperiodsconsistentwithapplicableplanning
45reservemargins,localclearingrequirements,andapplicablestateandfederal
46environmentalregulations,laws,orrules.
47 3.Withoutlimitingtherequirementssetforthinsubsection2ofthissection,an
48electricalcorporation’sintegratedresourceplanfilingshallinclude:
49 (1)Informationregardinggeneratingunitsintheelectricalcorporation’s
50existingportfolioincluding,butnotlimitedto,unitcharacteristics;currentand
51expectedaccreditedcapacitybyseason;licensingstatus;currentdepreciationratesfor
52eachgeneratingunit;currentlyexpectedretirementdatesand,ifapplicable,any
53remainingusefullifeofeachgeneratingunit,andidentificationofpotentialcapital
54projectsthatarereasonablyexpectedtoresultintheextensionoftheretirementdateof
55eachgeneratingunit;
HB853 4 56 (2)Plansformeetingcurrentandfuturegenerationattributeneedswith
57estimatesofthecapitalandoperatingandmaintenancecostsovertheplanninghorizon
58forallproposedconstructionandmajorinvestmentsinnewgeneratingunits,including
59costsassociatedwithtransmissionordistributioninfrastructurethatwouldberequired
60tointegratesuchinvestmentsintotheelectricalcorporation’ssystem;
61 (3)Identificationofthegenerationattributesnecessaryfortheprovisionofsafe
62andadequateserviceatjustandreasonablerates.Asusedinthissection"generation
63attributes"meansthecapacity,energy,andothergeneratingunitcapabilitiesusedin
64regionalenergyandcapacitymarketstodifferentiateservicesthatcanbeprovidedby
65varioustypesofgeneratingunits;
66 (4)Analysisofthecost,performance,expectedaccreditedcapacitybyseason,
67andviabilityofallreasonableoptionsavailabletomeetprojectedgenerationattribute
68needsincluding,butnotlimitedto,existingelectricgenerationfacilitiesandan
69explanationofwhyitselectedtheoptionsitdidforitsplans;
70 (5)Analysisofalternativeresourceplanstotestriskfactorsidentifiedbythe
71electricalcorporation;
72 (6)Anexplanationofhowtheelectricalcorporationusescapacityexpansion
73optimizationsoftwareforthedevelopmentofalternativeresourceplans;
74 (7)Projectionsofrateimpacts,includingfromfuelcostsofthetopfour
75alternativeresourceplans,andincludingthepreferredplanfortheperiodscoveredby
76theplan;
77 (8)Forecastsoftheelectricalcorporation’ssalesbyhourundervarious
78reasonablescenarios;
79 (9)Thetypesofgenerationtechnologiesproposedforgenerationfacilities
80containedintheplansandtheproposedaccreditedcapacityofthegenerationfacilities
81asestimatedbythecorporationandtherelevantregionaltransmissionorganizationor
82independentsystemoperator,includingprojectedfuelcostsundervariousreasonable
83scenarios;
84 (10)Ananalysisofpotentialneworupgradedelectrictransmissionand
85distributionoptionsfortheelectricalcorporation;
86 (11)Analysisoftheprojectedfirmgastransportationcontractsornaturalgas
87storagetheelectricalcorporationwillholdtoprovideanadequatesupplyoffueltoa
88newgenerationfacility.Asusedinthissection,"firmgastransportation"meansan
89anticipatedagreemententeredintobetweentheelectricalcorporationandanaturalgas
90transmissionproviderforasetperiodtoprovidefirmdeliveryofnaturalgastoan
91electricgenerationfacility;
HB853 5 92 (12)Projectedloadmanagement,demandresponseimpact,andpeakdemand
93reductionfortheelectricalcorporationincluding,butnotlimitedto,themagnitudeof
94expectedloadimpactsduringtheanticipatedhours,seasons,andyearsandthe
95projectedcostsforthoseprograms;
96 (13)Anexplanationofhowtheelectricalcorporationwillcomplywithall
97applicablestateandfederalenvironmentalregulations,laws,andrulesandthe
98projectedcostsofcomplyingwiththoseregulations,laws,andrules;
99 (14)Expectedresourceplanningandsystemimpactsofdraftprogramsand
100mechanismsassociatedwithnewload,reducedload,orretainedloadassociatedwith
101economicdevelopmentratesorridersandprogramsofferedinaccordancewithsection
102393.1075,aswellasotherprogramsofferedunderanyotherauthority;
103 (15)Resultsfromarequestforinformationorproposalstoprovideanynew
104supply-sideresourcesneededtoservethecorporation’sprojectedelectricload,
105applicableplanningreservemargin,andlocalclearingrequirementduringtheinitial
106four-yearplanningperiod.Therequestforinformationorproposalsmaydefine
107qualifyingperformancestandards,contractterms,technicalcompetence,capability,
108reliability,creditworthiness,pastperformance,andothercriteriathatresponsesand
109respondentstotherequestforinformationshallmeetinordertobeconsideredbythe
110corporationinitsintegratedresourceplan.Respondentstoarequestforinformationor
111proposalsmayrequestthatcertainproprietaryinformationbetreatedasconfidentialor
112highlyconfidentialpursuanttothecommission’sgoverningrules.Acorporationthat
113issuesarequestforinformationorproposalsunderthissubsectionshallusethe
114resultinginformationorproposalstoinformitsintegratedresourceplanandincludeall
115ofthesubmittedinformationorproposalsasattachmentstoitsintegratedresourceplan
116filing;
117 (16)Selectionofapreferredresourceplan;
118 (17)Delineationofanimplementationplancoveringafour-yearimplementation
119periodendingthreehundredsixty-fivedaysaftertheelectricalcorporation’snext-
120scheduledquadrennialintegratedresourceplanfiling,whichshallspecifythe
121constructionoracquisitionbytheutilityofspecificsupply-sideresourcesora
122specifiedquantityofsupply-sideresourcesbysupply-sideresourcetype,orboth,for
123whichconstructionoracquisitionisplannedtocommencewithinsaidfour-year
124implementationperiod;and
125 (18)Anyotherinformationthatthecommissionmayspecifybyrule.
126 4.Thecommissionshall,afterahearing,issueareportandordernolaterthan
127threehundredsixtydaysaftertheelectricalcorporationfilesanintegratedresource
128planunderthissectionunlessextendedforgoodcausebythecommission.Uptoone
HB853 6 129hundredfiftydaysafteranelectricalcorporationmakesitsinitialintegratedresource
130planfiling,theelectricalcorporationmayfiletoupdatethecostestimatesprovided
131undersubdivision(2)ofsubsection3ofthissectionifthosecostestimateshave
132materiallychanged.Anelectricalcorporationshallnotmodifyanyotheraspectofthe
133initialintegratedresourceplanfilingunlessthecommissiongrantstheelectrical
134corporationtheabilitytodoso.Thecommission’sreportandordershalldetermine
135whethertheelectricalcorporationhassufficientlysubmittedandselectedapreferred
136resourceplanthatrepresentsareasonableandprudentmeansofmeetingtheelectrical
137corporation’sloadservingobligationsatjustandreasonablerates.Inmakingthis
138determination,thecommissionshallconsiderwhetheritappropriatelybalancesallof
139thefollowingfactors:
140 (1)Resourceadequacytoserveanticipatedpeakelectricloadandseasonalpeak
141demandforecasts,applicableplanningreservemargin,localclearingrequirements,and
142theroleofenergyandcapacitymarkets;
143 (2)Reliability;
144 (3)Rateimpacts;
145 (4)Overallcost-effectivenessinprovidingservice;
146 (5)Commoditypricerisks;
147 (6)Diversityofsupply-sideresources;
148 (7)Competitivepricing;
149 (8)Participationinregionaltransmissionorganizationmarkets;and
150 (9)Compliancewithapplicablestateandfederalenvironmentalregulations.
151 5.(1)Ifthecommissiondeterminesthatthepreferredresourceplanisa
152reasonableandprudentmeansofmeetingtheelectricalcorporation’sloadserving
153obligations,suchdeterminationshallconstitutecommissionpermissionfortheelectrical
154corporationtoconstructoracquirethespecificsupply-sideresources,oraspecified
155quantityofsupply-sideresourcesbysupply-sideresourcetype,orboth,thatwere
156reflectedintheimplementationplansubmittedundersubdivision(15)ofsubsection3of
157thissection,providedthatconstructioncommencesortheacquisitionagreementis
158executedwithinthefour-yearimplementationperiod.Withrespecttosuchresources,
159whentheelectricalcorporationfilesanapplicationforacertificateofconvenienceand
160necessitytoauthorizeconstructionoracquisitionofsuchresourceorresourcesunder
161subsection1ofsection393.170,thecommissionshallbedeemedtohavedeterminedthat
162thesupply-sideresourcesforwhichsuchadeterminationwasmadearenecessaryor
163convenientforthepublicservice.Insuchacertificateofconvenienceandnecessity
164proceeding,thecommission’sinquiryshallbelimitedtoconsideringtheelectrical
165corporation’squalificationstoconstructandoperatetheresources,itsabilitytofinance
HB853 7 166theconstructionoracquisitionoftheresources,andsitingconsiderations.The
167commissionshalltakeallreasonablestepstoexpeditesuchacertificateofconvenience
168andnecessityproceedingand,inanyevent,shallissueitsdecisioninsuchaproceeding
169withinonehundredtwentydaysofthedatethattheelectricalcorporationfilesits
170application.Anelectricalcorporationshallannually,ormorefrequentlyifrequiredby
171thecommission,reporttothecommissionregardingthestatusofsupply-sideresources
172beingimplementedduringtheimplementationperiod.
173 (2)Ifthecommissiondeterminesthatthepreferredresourceplan,inwholeorin
174part,isnotareasonableandprudentmeansofmeetingtheelectricalcorporation’sload
175servingobligations,thecommissionshallhavetheauthoritytospecifyinitsreportand
176orderthedeficienciesinthepreferredresourceplanandmayrequiretheelectrical
177corporationtomakeafurtherfilingwithinsixtydaysafterissuanceofthereportand
178orderaddressingthedeficienciesandtheelectricalcorporationmaypropose
179modificationstoitsoriginalpreferredresourceplan.Ifsuchanorderrequiringa
180furtherfilingbytheelectricalcorporationisissued,thecommission’sreportandorder
181issuedunderthissubsectionshallnotbefinalforpurposesofrehearingundersection
182386.500orappealundersection386.510.Otherpartiestotheintegratedresourceplan
183docketshallhavesixtydaystorespondtotheelectricalcorporation’sfurtherfiling
184unlessextendedforgoodcausebythecommission.Withinsixtydaysafterthedeadline
185forsuchotherparties’filings,thecommissionshallissueitsreportandorder,which
186shallbefinalforpurposesofrehearingundersection386.500,andappealundersection
187386.510indicatingwhetherthedeficiencieshavebeenadequatelyaddressedbythe
188electricalcorporation’sfurtherfiling,andthecommissionmayapprovetheelectrical
189corporation’smodifiedpreferredresourceplanandmayapprovespecificsupply-side
190resourcesoraspecifiedquantityofsupply-sideresourcesbysupply-sideresourcetype,
191orboth.Ifthecommissionfindscontinueddeficienciesintheelectricalcorporation’s
192modifiedpreferredresourceplan:
193 (a)Thecommissionmay,undertheproceduresprovidedforinsection393.270,
194initiateacomplaintproceeding;
195 (b)Theelectricalcorporationshallnotbeeligibleforalimitedinquiryinany
196proceedingundersection393.170assetforthinsubdivision(1)ofthissubsectionforany
197resourceadditionsnotapprovedbythecommission;and
198 (c)Theelectricalcorporationshallnotbeeligibleforconstructionworkin
199progressassetforthinsubdivision(3)ofthissubsectionforanyresourceadditionsnot
200approvedbythecommission.
201 (3)Notwithstandingsection393.135tothecontrary,ifapprovedinaproceeding
202grantingpermissionandapprovalundersubsection1ofsection393.170,electrical
HB853 8 203corporationsmay,subjecttothelimitationsprovidedforinthissubdivision(3),be
204permittedtoincludeinratebaseamountsrecordedtoconstructionworkinprogressfor
205theinvestmentsforwhichpermissionisgivenundersubdivision(1)ofsubsection5of
206thissection.Theinclusionofconstructionworkinprogressallowedunderthis
207subdivisionshallbeinlieuofanyotherwiseapplicableallowanceforfundsusedduring
208constructionthatwouldhaveaccruedfromandaftertheeffectivedateofnewbaserates
209thatreflectinclusionoftheconstructionworkinprogressinratebase.Thecommission
210shalldetermine,inaproceedingundersection393.170,theamountofconstructionwork
211inprogressthatmaybeincludedinratebase.Theamountshallbelimitedbythe
212estimatedcostofsuchprojectandprojectexpendituresmadewithintheestimated
213constructionperiodforsuchproject.Baseraterecoveriesarisingfrominclusionof
214constructionworkinprogressinbaseratesaresubjecttorefund,togetherwithinterest
215ontherefundedamountatthesamerateastherateofinterestfordelinquenttaxes
216determinedbythedirectorofrevenueinaccordancewithsection32.065,ifandtothe
217extentthecommissiondetermines,inasubsequentcomplaintorgeneralrate
218proceeding,thatconstructioncostsgivingrisetotheconstructionworkinprogress
219includedinratebasewereimprudentlyincurred.Returndeferredundersubdivision
220(2)ofsubsection3ofsection393.1400foraplantthathasbeenincludedinbaseratesas
221constructionworkinprogressshalloffsettheamountsdeferredundersection393.1400.
222 6.Thecommissionshallpromulgaterulesnecessarytoimplementtheprovisions
223ofthissection.Anyruleorportionofarule,asthattermisdefinedinsection536.010,
224thatiscreatedundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyif
225itcomplieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,
226section536.028.Thissectionandchapter536arenonseverableandifanyofthepowers
227vestedwiththegeneralassemblypursuanttochapter536toreview,todelaythe
228effectivedate,ortodisapproveandannularulearesubsequentlyheldunconstitutional,
229thenthegrantofrulemakingauthorityandanyruleproposedoradoptedafterAugust
23028,2025,shallbeinvalidandvoid.
✔
HB853 9