FIRST REGULAR SESSION
SENATE BILL NO. 139
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR BLACK.
0653S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 393.170 and 523.010, RSMo, and to enact in lieu thereof three new sections
relating to electric utilities.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 393.170 and 523.010, RSMo, are 1
repealed and three new sections enacted in lieu thereof, to be 2
known as sections 393.170, 393.172, and 523.010, to read as 3
follows:4
393.170. 1. No gas corporation, electrical 1
corporation, water corporation or sewer corporation shall 2
begin construction of a gas plant, electric plant, water 3
system or sewer system, other than an energy generation unit 4
that has a capacity of one megawatt or less, without first 5
having obtained the permission and approval of the 6
commission. 7
2. No such corporation shall exercise any right or 8
privilege under any franchise hereafter granted, or under 9
any franchise heretofore granted but not heretofore actually 10
exercised, or the exercise of which shall have been 11
suspended for more than one year, witho ut first having 12
obtained the permission and approval of the commission. 13
Before such certificate shall be issued a certified copy of 14
the charter of such corporation shall be filed in the office 15
of the commission, together with a verified statement of t he 16
president and secretary of the corporation, showing that it 17 SB 139 2
has received the required consent of the proper municipal 18
authorities. 19
3. The commission shall have the power to grant the 20
permission and approval herein specified whenever it shall 21
after due hearing determine that such construction or such 22
exercise of the right, privilege or franchise is necessary 23
or convenient for the public service. The commission may by 24
its order impose such condition or conditions as it may deem 25
reasonable and necessary. Unless exercised within a period 26
of two years from the grant thereof, authority conferred by 27
such certificate of convenience and necessity issued by the 28
commission shall be null and void. 29
4. (1) The provisions of this subsection sh all apply 30
when the permission and approval sought from the commission 31
under subsection 1 of this section is for the construction 32
of electric transmission facilities approved by a regional 33
transmission operator. To the greatest extent practical, 34
such electric transmission facilities shall be designed, 35
consistent with electric industry standards, to utilize a 36
multi-circuit configuration, be sited with or along existing 37
above-ground infrastructure, or replace or upgrade existing 38
above-ground infrastructure, whether or not the existing 39
electric transmission facility infrastructure utilized is 40
owned by an electrical corporation that owns in -service 41
electric transmission facilities in this state that are 42
under the functional control of a regional tra nsmission 43
operator. Electric transmission facilities need not be 44
designed as provided in the immediately preceding sentence 45
if the commission determines in a proceeding pursuant to 46
which permission and approval is sought under subsection 1 47
of this section that such a design is inconsistent with 48
electric industry standards, is inconsistent with the 49 SB 139 3
reliability basis given for the electric transmission 50
facilities project, or is not in the best interest of the 51
electrical corporation's customers or, t o the extent the 52
electrical corporation does not directly serve retail 53
customers, the interests of the electric customers whose 54
retail rates will reflect the majority of the costs of the 55
electric transmission facilities to -be-constructed. In 56
addition, to the extent such electric transmission 57
facilities will be sited with or along or will replace or 58
upgrade existing above -ground electrical infrastructure that 59
is not owned by an entity seeking permission and approval 60
pursuant to an application filed under subsection 1 of this 61
section or by its affiliate, the entity or entities that 62
will own the new electric transmission facilities subject to 63
the application shall obtain from the underlying fee owners 64
independent real estate rights necessary to ac commodate the 65
installation and operation thereof. Nothing in this 66
subdivision shall relieve such entity or entities of the 67
obligations contained in sections 523.039 or 523.256, to the 68
extent those obligations would otherwise apply. 69
(2) In addition to the design requirements in 70
subdivision (1) of this subsection, each electrical 71
corporation seeking permission and approval under subsection 72
1 of this section shall competitively bid the major 73
construction components of each project for which perm ission 74
and approval is sought and shall utilize competitive 75
sourcing strategies for all related major materials. 76
(3) Only electrical corporations that own in -service 77
electric transmission facilities in this state that are 78
under the functional con trol of a regional transmission 79
operator and to which the electric transmission facilities 80
subject to the application will connect, either initially or 81 SB 139 4
once construction of all electric transmission facilities 82
approved by the regional transmission oper ator as of the 83
time of the commission's approval of the application are 84
completed, may file applications with the commission for 85
permission and approval to construct the electric 86
transmission facilities described in this subsection. 87
Within ninety days following approval of the construction of 88
electric transmission facilities by the applicable regional 89
transmission operator, an electric corporation seeking 90
permission and approval for electric transmission facilities 91
under the provisions of this su bsection may notify the 92
commission that it will not construct any or some portion of 93
the facilities approved. If such notice is given and 94
indicates the notifying electrical corporation will not 95
construct any of the facilities approved, the commission m ay 96
grant permission and approval for such facilities' 97
construction to any other electrical corporation. If such 98
notice indicates that it will assign all or a portion of the 99
facilities approved to another electrical corporation, the 100
commission may grant permission and approval for the 101
facilities that were assigned to the assignee electrical 102
corporation and such electrical corporation's construction 103
of the facilities will be subject to this subsection. 104
(4) This subsection shall not limit the ri ght of any 105
electrical corporation to seek permission and approval from 106
the commission to construct, operate, and maintain electric 107
transmission facilities in this state that will not 108
initially connect to electric transmission facilities in 109
this state that are not under the functional control of a 110
regional transmission operator. This subsection shall also 111
not limit the right of any electrical corporation, any 112
municipal utility operating under chapter 91, any joint 113 SB 139 5
electric utility commission operat ing under chapter 393, any 114
rural electric cooperative organized or operating under 115
chapter 394, any corporation organized on a nonprofit or a 116
cooperative basis as described in subsection 1 of section 117
394.200, or any electrical corporation operating und er the 118
not-for-profit cooperative business plan as described in 119
subsection 2 of section 393.110 to construct, operate, and 120
maintain electric transmission facilities in this state that 121
are not under the functional control of a regional 122
transmission operator. 123
(5) In considering applications under this subsection, 124
the commission shall take into account the importance of 125
construction of electric transmission facilities in the 126
state needed to support Missouri's economy, the benefits of 127
electric transmission facility construction to Missouri 128
customers, and the importance of transmission facility 129
construction in ensuring reliable electric service in the 130
state in the twenty-first century and beyond. 131
(6) For the purposes of this subsection, th e following 132
terms shall mean: 133
(a) "Electric transmission facilities", a transmission 134
line that is designed and constructed with the capability of 135
being safely and reliably energized at one hundred kilovolts 136
or more and associated transmission fac ilities, including 137
substations; 138
(b) "Regional transmission operator", a regional 139
transmission organization, independent system operator, or 140
equivalent entity approved by the Federal Energy Regulatory 141
Commission or its successor agency that exerci ses functional 142
control over electric transmission facilities located within 143
this state. 144 SB 139 6
393.172. By March 31, 2026, the commission shall adopt 1
rules applicable to electrical corporations that require the 2
entity constructing an elect ric transmission line under 3
subsection 1 of section 393.170 for which permission is 4
sought from the commission on or after the effective date of 5
this section to adhere to standards to be adopted by such 6
rules relating to construction activities occurri ng 7
partially or wholly on privately owned agricultural land. 8
Such standards shall address, at a minimum, landowner 9
communication expectations, expectations with respect to 10
transmission structure design and placement, wet weather 11
construction and reme diation practices, agricultural 12
mitigation and restoration practices, construction -related 13
tree and brush clearing, expectations concerning the use and 14
restoration of field entrances and temporary roads, and best 15
practices with respect to erosion preve ntion. 16
523.010. 1. In case land, or other property, is 1
sought to be appropriated by any road, railroad, street 2
railway, telephone, telegraph or any electrical corporation 3
organized for the manufacture or transmission of electric 4
current for light, heat or power, including the 5
construction, when that is the case, of necessary dams and 6
appurtenant canals, flumes, tunnels and tailraces and 7
including the erection, when that is the case, of necessary 8
electric steam powerhouses, hydro electric powerhouses and 9
electric substations or any oil, pipeline or gas corporation 10
engaged in the business of transporting or carrying oil, 11
liquid fertilizer solutions, or gas by means of pipes or 12
pipelines laid underneath the surface of the ground, or 13
other corporation created under the laws of this state for 14
public use, and such corporation and the owners cannot agree 15
upon the proper compensation to be paid, or in the case the 16 SB 139 7
owner is incapable of contracting, be unknown, or be a 17
nonresident of the state, such corporation may apply to the 18
circuit court of the county of this state where such land or 19
any part thereof lies by petition setting forth the general 20
directions in which it is desired to construct its road, 21
railroad, street railway, telephone, or telegraph line or 22
electric line, including, when that is the case, the 23
construction and maintenance of necessary dams and 24
appurtenant canals, tunnels, flumes and tailraces and, when 25
that is the case, the appropriation of land submerged by the 26
construction of such dam, and including the erection and 27
maintenance, when that is the case, of necessary electric 28
steam powerhouses, hydroelectric powerhouses and electric 29
substations, or oil, pipeline, liquid fertilizer solution 30
pipeline, or gas line over or underneath the surface of such 31
lands, a description of the real estate, or other property, 32
which the company seeks to acquire; the names of the owners 33
thereof, if known; or if unknown, a pertinent description of 34
the property whose owners are unknown and praying the 35
appointment of three disinterested residents of the county, 36
as commissioners, or a jury, to assess the damages which 37
such owners may severally sustain in consequence of the 38
establishment, erection and maintenance of such ro ad, 39
railroad, street railway, telephone, telegraph line, or 40
electrical line including damages from the construction and 41
maintenance of necessary dams and the condemnation of land 42
submerged thereby, and the construction and maintenance of 43
appurtenant canals, flumes, tunnels and tailraces and the 44
erection and maintenance of necessary electric steam 45
powerhouses, hydroelectric powerhouses and electric 46
substations, or oil, pipeline, or gas line over or 47
underneath the surface of such lands; to which peti tion the 48 SB 139 8
owners of any or all as the plaintiff may elect of such 49
parcels as lie within the county or circuit may be made 50
parties defendant by names if the names are known, and by 51
the description of the unknown owners of the land therein 52
described if their names are unknown. 53
2. If the proceedings seek to affect the lands of 54
persons under conservatorship, the conservators must be made 55
parties defendant. If the present owner of any land to be 56
affected has less estate than a fee, the person havin g the 57
next vested estate in remainder may at the option of the 58
petitioners be made party defendant; but if such 59
remaindermen are not made parties, their interest shall not 60
be bound by the proceedings. 61
3. It shall not be necessary to make any pers ons party 62
defendants in respect to their ownership unless they are 63
either in actual possession of the premises to be affected 64
claiming title or having a title of the premises appearing 65
of record upon the proper records of the county. 66
4. Except as provided in subsection 5 of this section, 67
nothing in this chapter shall be construed to give a public 68
utility, as defined in section 386.020, or a rural electric 69
cooperative, as provided in chapter 394, the power to 70
condemn property which is currently used by another provider 71
of public utility service, including a municipality or a 72
special purpose district, when such property is used or 73
useful in providing utility services, if the public utility 74
or cooperative seeking to condemn such property, dire ctly or 75
indirectly, will use or proposes to use the property for the 76
same purpose, or a purpose substantially similar to the 77
purpose for which the property is being used by the provider 78
of the public utility service. 79 SB 139 9
5. A public utility or a rura l electric cooperative 80
may only condemn the property of another provider of public 81
utility service, even if the property is used or useful in 82
providing utility services by such provider, if the 83
condemnation is necessary for the public purpose of 84
acquiring a nonexclusive easement or right -of-way across the 85
property of such provider and only if the acquisition will 86
not materially impair or interfere with the current use of 87
such property by the utility or cooperative and will not 88
prevent or materially impair such provider of public utility 89
service from any future expansion of its facilities on such 90
property. 91
6. If a public utility or rural electric cooperative 92
seeks to condemn the property of another provider of public 93
utility service, and th e conditions in subsection 4 of this 94
section do not apply, this section does not limit the 95
condemnation powers otherwise possessed by such public 96
utility or rural electric cooperative. 97
7. Suits in inverse condemnation or involving 98
dangerous conditions of public property against a municipal 99
corporation established under Article VI, Section 30(a) of 100
the Missouri Constitution shall be brought only in the 101
county where such land or any part thereof lies. 102
8. For purposes of this chapter, the au thority for an 103
electrical corporation as defined in section 386.020, except 104
for an electrical corporation operating under a cooperative 105
business plan as described in section 393.110, to condemn 106
property for purposes of constructing an electric plant 107
subject to a certificate of public convenience and necessity 108
under subsection 1 of section 393.170 shall not extend to 109
the construction of a merchant transmission line with 110
Federal Energy Regulatory Commission negotiated rate 111 SB 139 10
authority unless such line has a substation or converter 112
station located in Missouri which is capable of delivering 113
an amount of its electrical capacity to electrical customers 114
in this state that is greater than or equal to the 115
proportionate number of miles of the line that pass es 116
through the state. The provisions of this subsection shall 117
not apply to applications filed pursuant to section 393.170 118
prior to August 28, 2022. 119
9. For the purposes of this chapter, the authority of 120
any corporation set forth in subsection 1 o f this section to 121
condemn property shall not extend to: 122
(1) The construction or erection of any plant, tower, 123
panel, or facility that utilizes, captures, or converts wind 124
or air currents to generate or manufacture electricity; or 125
(2) The construction or erection of any plant, tower, 126
panel, or facility that utilizes, captures, or converts the 127
light or heat generated by the sun to generate or 128
manufacture electricity. 129
10. Subject to subsection 8 of this section, but 130
notwithstanding subsection 9 of this section, the authority 131
of any corporation set forth in subsection 1 of this section 132
to condemn property shall extend to acquisition of rights 133
needed to construct, operate, and maintain collection lines, 134
distribution lines, transmissio n lines, communications 135
lines, substations, switchyards, and other facilities needed 136
to collect and deliver energy generated or manufactured by 137
the facilities described in subsection 9 of this section to 138
the distribution or transmission grid. 139