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Missouri Senate Bill SB186

Missouri 2025 Regular Session

Missouri Senate Bill SB186 Compare Versions

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1-1312S.03C
2- 1
3-SENATE COMMITTEE SUBSTITUTE
4-FOR
1+
2+FIRST REGULAR SESSION
53 SENATE BILL NO. 186
4+103RD GENERAL ASSEMBLY
5+INTRODUCED BY SENATOR CIERPIOT.
6+1312S.01I KRISTINA MARTIN, Secretary
67 AN ACT
7-To repeal section 393.135, RSMo, and to enact in lieu
8-thereof three new sections relating to electrical
9-corporations.
8+To amend chapter 393, RSMo, by adding thereto one new section relating to integrated resource
9+planning for electrical corporations.
1010
1111 Be it enacted by the General Assembly of the State of Missouri, as follows:
12- Section A. Section 393.135, RSMo, is repealed and three
13-new sections enacted in lieu thereof, to be known as sections
14-393.135, 393.1080, and 393.1900, to read as follows:
15- 393.135. 1. Except as provided in subsection 2 of
16-this section, any charge made or demanded by an electrical
17-corporation for service, or in connection therewith, which
18-is based on the costs of construction in progress upon any
19-existing or new facility of the electrical corporation, or
20-any other cost associated with ownin g, operating,
21-maintaining, or financing any property before it is fully
22-operational and used for service, is unjust and
23-unreasonable, and is prohibited.
24- 2. (1) An electrical corporation shall be permitted,
25-subject to the limitations in this subs ection, to include
26-construction work in progress for any new natural gas -
27-generating unit in rate base. The inclusion of construction
28-work in progress allowed under this subsection shall be in
29-lieu of any otherwise applicable allowance for funds used
30-during construction that would have accrued from and after
31-the effective date of new base rates that reflect inclusion
32-of the construction work in progress in rate base. The
33-commission shall determine, in a proceeding under section
34-393.170, the amount of construction work in progress that
35-may be included in rate base. The amount shall be limited
36- 2
37-by the estimated cost of such project and project
38-expenditures made within the estimated construction period
39-for such project. Base rate recoveries arisi ng from
40-inclusion of construction work in progress in base rates are
41-subject to refund, together with interest on the refunded
42-amount at the same rate as the rate of interest for
43-delinquent taxes determined by the director of revenue in
44-accordance with section 32.065, if, and to the extent the
45-commission determines, in a subsequent complaint or general
46-rate proceeding, that construction costs giving rise to the
47-construction work in progress included in rate base were
48-imprudently incurred or if the project for which
49-construction costs have been included in the rate base is
50-not placed in service within a reasonable amount of time, as
51-determined by the commission. Return deferred under
52-subdivision (2) of subsection 3 of section 393.1400 for
53-plant that has been included in base rates as construction
54-work in progress shall offset the amounts deferred under
55-section 393.1400.
56- (2) This subsection shall expire on December 31, 2035,
57-unless the commission determines, after a hearing conducted
58-in 2035, upon a submission from an electrical corporation of
59-an application requesting and demonstrating that good cause
60-exists to extend the effectiveness of this subsection
61-through December 31, 2045. The secretary of the commission
62-shall notify the revisor of statutes when the conditions set
63-forth for the extension of this subsection have been met.
64- 393.1080. 1. The commission may require electrical
65-corporations to provide documentation annually, in a format
66-determined by the commis sion, reflecting its plan to own or
67-have rights to sufficient capacity to meet its capacity
68-obligations for the upcoming planning year and each of the
69-three subsequent planning years. Electrical corporations
70- 3
71-shall submit such documentation, which shal l include its
72-actual capacity position for the upcoming planning year and
73-a reasonable forecast of its capacity position for the three
74-subsequent planning years consistent with resource adequacy
75-requirements of the appropriate regional transmission
76-organization or independent system operator or commission,
77-including by season or other applicable period, within
78-thirty days after the appropriate regional transmission
79-organization or independent system operator or commission,
80-if applicable, makes a fi nal determination as to the
81-electrical corporation's resource adequacy requirements for
82-the upcoming planning year.
83- 2. The commission may require any additional audits
84-and reporting as the commission considers necessary to
85-determine if an electri cal corporation's plan provides for
86-electrical corporation ownership or contractual rights to
87-sufficient capacity for the planning year beginning four
88-years after the beginning of the current planning year.
89- 3. If an electrical corporation fails to have
90-sufficient capacity for the upcoming planning year and it is
91-determined by the commission to be the result of the
92-electrical corporation's imprudence, the commission may
93-disallow, after a hearing, any associated costs related to
94-said failure in a future proceeding. The commission may
95-require submission of a plan within six months to resolve
96-any expected capacity deficiency for the subsequent three
97-planning years.
98- 4. As used in this section, the following terms shall
99-mean:
100- (1) "Appropriate regional transmission organization or
101-independent system operator", the Midcontinent Independent
102-System Operator or the Southwest Power Pool, or any
103-successor organization;
104- 4
105- (2) "Sufficient capacity", owned or contracted -for
106-capacity that meets the planning reserve margin or successor
107-metric established by the appropriate regional transmission
108-organization or independent system operator or, in the case
109-of an electrical corporation that is not a participant in a
110-regional transmission organization or independent system
111-operator, that meets the planning reserve margin or
112-successor metric established by the commission.
113- 5. The commission may promulgate rules necessary to
114-implement the provisions of this section. Any rule or
115-portion of a rule, as that term is defined in section
116-536.010, that is created under the authority delegated in
117-this section shall become effective only if it complies with
118-and is subject to all of the provisions of chapter 536 and,
119-if applicable, section 536.028. This section and chapter
120-536 are nonseverable and if any of the powers vested with
121-the general assembly pursuant to chapter 536 to review, to
122-delay the effective date, or to disapprove and annul a rule
123-are subsequently held unconstitutional, then the grant of
124-rulemaking authority and any rule proposed or adopted after
125-August 28, 2025, shall be invalid and void.
126- 393.1900. 1. The commission shall, by August 28,
127-2026, and every four years or as needed thereafter, commence
128-an integrated resource planning proceeding for electrical
129-corporations. As part of such proceeding, the commission
130-shall:
131- (1) Identify any required planning reserve margins and
132-applicable local clearing requirements, and any proposed
133-planning reserve margins and local clearing requirements
134-which are scheduled to take effect within a relevant future
135-timeframe;
136- (2) Identify significant existing state or federal
137-environmental regulations, laws, or rules and identify how
138- 5
139-each such regulation, law, or rule may apply to electrical
140-corporations in this state;
141- (3) Identify separately significant proposed state or
142-federal environmental regulations, laws, or rules and
143-identify how each such regulation, law, or rule may apply to
144-electrical corporations in this state;
145- (4) Establish an alternative resource plan or plans
146-that shall be included in an electrical corporation's
147-integrated resource plan filing pursuant to subsection 3 of
148-this section, and the factors that each electrical
149-corporation may take into account in developing such plans,
150-including, but not limited to, all of the following:
151- (a) Projected planning reserve margins and local
152-clearing requirements and the environmental regulations,
153-laws, or rules pursuant to su bdivisions (1) and (2) of this
154-subsection, respectively;
155- (b) Projections of future loads including both energy
156-and capacity over the planning period;
157- (c) The supply-side and demand-side resources that may
158-reasonably address any need for addi tional energy and
159-capacity, including, but not limited to, the type of
160-generation technology for any proposed generation facility,
161-projected load impact due to electrification or economic
162-development projects, and projected load management and
163-demand response savings;
164- (d) The projected cost of different types of
165-technologies and fuel used for electric generation; and
166- (e) Any other factors the commission may order to be
167-considered;
168- (5) Identify or designate any software, data
169-standards, and formatting to be used in modeling the
170-alternative resource plan or plans pursuant to subdivision
171-(4) of this subsection;
172- 6
173- (6) Complete such proceeding no less than eighteen
174-months prior to the first integrated resource plan filing
175-pursuant to subsection 2 of this section.
176- 2. Not later than August 28, 2027, the commission
177-shall publish a schedule for electrical corporations to file
178-an integrated resource plan every four years, with the first
179-integrated resource plan or plans filing to occur not before
180-the first day of the nineteenth month after publication of
181-such schedule. Each electrical corporation shall, pursuant
182-to the published schedule, file with the commission an
183-integrated resource plan that includes an alternative
184-resource plan or plans meeting the requirements of
185-subdivision (3) of subsection 1 of this section, and such
186-other alternative resource plans as the electrical
187-corporation deems appropriate. All alternative resource
188-plans shall cover a minimum sixteen -year planning horizon.
189-All such plans shall reflect projections of an electrical
190-corporation's load obligations and how under each such plan
191-the electrical corporation would reliably meet its projected
192-load obligations over such periods consistent with
193-applicable planning reserve margins, local clearing
194-requirements, and applicable state and federal environmental
195-regulations, laws, or rules.
196- 3. Without limiting the requirements set forth in
197-subsection 2 of this section, an electrical corporati on's
198-integrated resource plan filing shall include:
199- (1) Information regarding generating units in the
200-electrical corporation's existing portfolio, including, but
201-not limited to, unit characteristics, current and expected
202-accredited capacity by se ason, licensing status, current
203-depreciation rates for each generating unit, currently
204-expected retirement dates and, if applicable, any remaining
205-useful life of each generating unit, and identification of
206- 7
207-potential capital projects that are reasonably expected to
208-result in the extension of the retirement date of each
209-generating unit;
210- (2) Plans for meeting current and future generation
211-attribute needs, with estimates of the capital and operating
212-and maintenance costs over the planning horizon for all
213-proposed construction and major investments in new
214-generating units, including costs associated with
215-transmission or distribution infrastructure that would be
216-required to integrate such investments into the electrical
217-corporation's system;
218- (3) Identification of the generation attribute
219-necessary for the provision of safe and adequate service at
220-just and reasonable rates;
221- (4) Analysis of the cost, performance, expected
222-accredited capacity by season, and viability of all
223-reasonable options available to meet projected generation
224-attribute needs, including, but not limited to, existing
225-electric generation facilities, and an explanation why an
226-electrical corporation selected the options outlined in the
227-plan;
228- (5) Analysis of alternative resource plans to test
229-risk factors identified by the electrical corporation;
230- (6) An explanation of how the electrical corporation
231-uses capacity expansion optimization software for the
232-development of alternative resource plans;
233- (7) Projections of rate impacts including rate impacts
234-from fuel costs of the top four alternative resource plans
235-including the preferred plan for the periods covered by the
236-plan;
237- (8) Forecasts of the electrical corporation's sales by
238-hour under reasonable scenarios;
239- 8
240- (9) The types of generation technologies proposed for
241-generation facilities contained in the plans and the
242-proposed accredited capacity of the generation facilities as
243-estimated by the corporation and the relevant regional
244-transmission organization or independent system operator,
245-including projected fuel costs under reasonable scenarios;
246- (10) An analysis of potential new or upgraded electric
247-transmission and distribution options for the electrical
248-corporation;
249- (11) Analysis of the projected firm gas transportation
250-contracts or natural gas storage the electrical corporation
251-will hold to provide an adequate supply of fuel to new
252-generation facilities;
253- (12) Projected load management, demand response
254-impact, and peak demand reduction for the electrical
255-corporation, including, but not limited to, the magnitude of
256-expected load impacts during the anticipated hours, seasons,
257-and years and the projected costs for such plans;
258- (13) An explanation of how t he electrical corporation
259-will comply with all applicable state and federal
260-environmental regulations, laws, and rules, and the
261-projected costs of complying with those regulations, laws,
262-and rules;
263- (14) Expected resource planning and system impac ts of
264-contemplated programs and mechanisms associated with new
265-load, reduced load, or retained load associated with
266-economic development rates or riders and programs offered in
267-accordance with section 393.1075, as well as other programs
268-offered under current law;
269- (15) Results from a request for information or
270-proposals to provide any new supply -side resources needed to
271-serve the corporation's projected electric load, applicable
272-planning reserve margin, and local clearing requirement
273- 9
274-during the initial four-year planning period. The request
275-for information or proposals may define qualifying
276-performance standards, contract terms, technical competence,
277-capability, reliability, creditworthiness, past performance,
278-and other criteria that respo nses or respondents to the
279-request for information shall meet in order to be considered
280-by the corporation in its integrated resource plan.
281-Respondents to a request for information or proposals may
282-request that certain proprietary information be treat ed as
283-confidential or highly confidential pursuant to the
284-commission's governing rules. A corporation that issues a
285-request for information or proposals under this subsection
286-shall use the resulting information or proposals to inform
287-its integrated resource plan and include all of the
288-submitted information or proposals as attachments to its
289-integrated resource plan filing;
290- (16) Selection of a preferred resource plan;
291- (17) Delineation of an implementation plan covering a
292-four-year implementation period ending three hundred sixty -
293-five days after the electrical corporation's next -scheduled
294-quadrennial integrated resource plan filing, which shall
295-specify the construction or acquisition by the utility of
296-specific supply-side resources or a specified quantity of
297-supply-side resources by supply -side resource type, or both,
298-for which construction or acquisition is planned to commence
299-within said four-year implementation period; and
300- (18) Any other information that the commission may
301-specify by rule.
302- 4. The commission shall, after a hearing is conducted,
303-issue a report and order no later than three hundred sixty
304-days after the electrical corporation files an integrated
305-resource plan under this section, unless the commission
306-grants itself an extension for good cause for the issuance
307- 10
308-of the report and order. Up to one hundred fifty days after
309-an electrical corporation makes its initial integrated
310-resource plan filing, the electrical corporation may file an
311-update of the cost estimates provided under subdivision (2)
312-of subsection 3 of this section if the cost estimates have
313-materially changed. An electrical corporation shall not
314-modify any other aspect of the initial integrated resource
315-plan filing unless the commission grants the electrical
316-corporation the ability to do so. The commission's report
317-and order shall determine whether the electrical corporation
318-has submitted sufficient documentation and selected a
319-preferred resource plan that represents a reasonable and
320-prudent means of meeting the electrical corporation's load
321-serving obligations at just and reasonable rates. In making
322-the determination, the commission shall consider whether the
323-plan appropriately balances all of the following factors:
324- (a) Resource adequacy to serve anticipated peak
325-electric load and seasonal peak demand forecasts, applicable
326-planning reserve margin, local clearing requirements, and
327-the role of energy and capacity markets;
328- (b) Reliability;
329- (c) Rate impacts;
330- (d) Overall cost-effectiveness in providing service;
331- (e) Commodity price risks;
332- (f) Diversity of supply-side resources;
333- (g) Competitive pricing;
334- (h) Participation in regional transmission
335-organization markets; and
336- (i) Compliance with applicable state and federal
337-environmental regulations.
338- 5. (1) If the commission determines that the
339-preferred resource plan is a reasonable and prudent means of
340-meeting the electrical corporation's load serving
341- 11
342-obligations, such dete rmination shall constitute the
343-commission's permission for the electrical corporation to
344-construct or acquire the specified supply -side resources, or
345-a specified quantity of supply -side resources by supply -side
346-resource type, or both, identified by the commission, that
347-were reflected in the implementation plan submitted under
348-subdivision (17) of subsection 3 of this section, provided
349-that construction commences or the acquisition agreement is
350-executed within the four -year implementation period. With
351-respect to such resources, when the electrical corporation
352-files an application for a certificate of convenience and
353-necessity to authorize construction or acquisition of such
354-resource or resources pursuant to subsection 1 of section
355-393.170, the commission shall be deemed to have determined
356-that the supply-side resources for which such a
357-determination was made are necessary or convenient for the
358-public interest. In such a certificate of convenience and
359-necessity proceeding, the commission's inq uiry shall be
360-limited to considering the electrical corporation's
361-qualifications to construct and operate the resources, the
362-electrical corporation's ability to finance the construction
363-or acquisition of the resources, and siting considerations.
364-The commission shall take all reasonable steps to expedite
365-such a certificate of convenience and necessity proceeding
366-and shall issue its decision in such a proceeding within one
367-hundred twenty days of the date that the electrical
368-corporation files its app lication. An electrical
369-corporation shall annually, or more frequently if required
370-by the commission, report to the commission the status of
371-supply-side resources being implemented during the
372-implementation period.
373- (2) If the commission determin es that the preferred
374-resource plan, in whole or in part, is not a reasonable and
375- 12
376-prudent means of meeting the electrical corporation's load
377-serving obligations, the commission shall have the authority
378-to specify in its report and order the deficiencie s in the
379-preferred resource plan and may require the electrical
380-corporation to make a further filing within sixty days after
381-issuance of the report and order addressing the deficiencies
382-and the electrical corporation may propose modifications to
383-its original preferred resource plan. If such an order
384-requiring a further filing by the electrical corporation is
385-issued, the commission's report and order issued under this
386-subsection shall not be final for purposes of rehearing
387-pursuant to section 386.5 00 or an appeal pursuant to section
388-386.510. Other parties to the integrated resource plan
389-docket shall have sixty days to respond to the electrical
390-corporation's further filing, unless the commission grants
391-an extension for good cause to respond to t he electrical
392-corporation's further filing. Within sixty days after the
393-deadline for such other parties' filings, the commission
394-shall issue a report and order, which shall be final for
395-purposes of rehearing pursuant to section 386.500, and
396-appeal pursuant to section 386.510, indicating whether the
397-deficiencies have been cured by the electrical corporation's
398-further filing and the commission may approve the electrical
399-corporation's modified preferred resource plan and may
400-approve specific supply -side resources, or a specified
401-quantity of supply-side resources by supply -side resource
402-type, or both. If the commission finds continued
403-deficiencies in the electrical corporation's modified
404-preferred resource plan:
405- (a) The commission may initiat e a complaint proceeding
406-pursuant to the provisions of section 393.270;
407- (b) The electrical corporation shall not be eligible
408-for a limited inquiry in any proceeding under section
409- 13
410-393.170 as set forth in subdivision (1) of this subsection
411-for any resource additions not approved by the commission;
412-and
413- (c) The electrical corporation shall not be eligible
414-for construction work in progress as set forth in
415-subdivision (3) of this subsection for any resource
416-additions not approved by the commis sion.
417- (3) Notwithstanding section 393.135 to the contrary,
418-if approved in a proceeding granting permission and approval
419-under subsection 1 of section 393.170, an electrical
420-corporation may be permitted to include in the corporation's
421-rate base any amounts recorded to construction work in
422-progress for the investments for which permission is given
423-under subdivision (1) of subsection 5 of this section. The
424-inclusion of construction work in progress shall be in lieu
425-of any otherwise applicable al lowance for funds used during
426-construction that would have accrued from and after the
427-effective date of new base rates that reflect inclusion of
428-the construction work in progress in rate base. The
429-commission shall determine, in a proceeding under sect ion
430-393.170, the amount of construction work in progress that
431-may be included in rate base. The amount shall be limited
432-by:
433- (a) The estimated cost of such project; and
434- (b) Project expenditures made within the estimated
435-construction period for such project. Base rate recoveries
436-arising from inclusion of construction work in progress in
437-base rates are subject to refund, together with interest on
438-the refunded amount at the same rate as the rate of interest
439-for delinquent taxes determined by the director of revenue
440-in accordance with section 32.065, if and to the extent the
441-commission determines, in a subsequent complaint or general
442-rate proceeding, that construction costs giving rise to the
443- 14
444-construction work in progress included in rat e base were
445-imprudently incurred. Return deferred under subdivision (2)
446-of subsection 3 of section 393.1400 for plant that has been
447-included in base rates as construction work in progress
448-shall offset the amounts deferred under section 393.1400.
449- 6. The commission shall promulgate rules necessary to
450-implement the provisions of this section. Any rule or
451-portion of a rule, as that term is defined in section
452-536.010, that is created under the authority delegated in
453-this section shall become effe ctive only if it complies with
454-and is subject to all of the provisions of chapter 536 and,
455-if applicable, section 536.028. This section and chapter
456-536 are nonseverable and if any of the powers vested with
457-the general assembly pursuant to chapter 536 to review, to
458-delay the effective date, or to disapprove and annul a rule
459-are subsequently held unconstitutional, then the grant of
460-rulemaking authority and any rule proposed or adopted after
461-August 28, 2025, shall be invalid and void.
462- 7. As used in this section, the following terms shall
463-mean:
464- (1) "Firm gas transportation", an anticipated
465-agreement entered into between the electrical corporation
466-and a natural gas transmission provider for a set period of
467-time to provide firm delivery of natural gas to an electric
468-generation facility;
469- (2) "Generation attribute", the capacity, energy, and
470-other generating unit capabilities used in regional energy
471-and capacity markets to differentiate services that can be
472-provided by various types of generating units.
12+ Section A. Chapter 393, RSMo, is amended by adding thereto 1
13+one new section, to be known as section 393.1900, to read as 2
14+follows:3
15+ 393.1900. 1. The commission shall, by August 28, 1
16+2026, and every four years or as needed thereafter, commence 2
17+an integrated resource planning proc eeding for electrical 3
18+corporations. As part of such proceeding, the commission 4
19+shall: 5
20+ (1) Identify any required planning reserve margins and 6
21+applicable local clearing requirements, and any proposed 7
22+planning reserve margins and local clearing req uirements 8
23+which are scheduled to take effect within a relevant future 9
24+timeframe; 10
25+ (2) Identify significant existing or proposed state or 11
26+federal environmental regulations, laws, or rules and 12
27+identify how each such regulation, law, or rule may appl y to 13
28+electrical corporations in this state; 14
29+ (3) Establish an alternative resource plan or plans 15
30+that shall be included in an electrical corporation's 16
31+integrated resource plan filing pursuant to subsection 3 of 17
32+this section, and the factors that e ach electrical 18 SB 186 2
33+corporation may take into account in developing such plans, 19
34+including, but not limited to, all of the following: 20
35+ (a) Projected planning reserve margins and local 21
36+clearing requirements and the environmental regulations, 22
37+laws, or rules pursuant to subdivisions (1) and (2) of this 23
38+subsection, respectively; 24
39+ (b) Projections of future loads including both energy 25
40+and capacity over the planning period; 26
41+ (c) The supply-side and demand-side resources that may 27
42+reasonably address any need for additional energy and 28
43+capacity, including, but not limited to, the type of 29
44+generation technology for any proposed generation facility, 30
45+projected load impact due to electrification or economic 31
46+development projects, and projected load manage ment and 32
47+demand response savings; 33
48+ (d) The projected cost of different types of 34
49+technologies and fuel used for electric generation; and 35
50+ (e) Any other factors the commission may order to be 36
51+considered; 37
52+ (4) Identify or designate any softw are, data 38
53+standards, and formatting to be used in modeling the 39
54+alternative resource plan or plans pursuant to subdivision 40
55+(3) of this subsection; 41
56+ (5) Complete such proceeding no less than eighteen 42
57+months prior to the first integrated resource pla n filing 43
58+pursuant to subsection 2 of this section. 44
59+ 2. Not later than August 28, 2027, the commission 45
60+shall publish a schedule for electrical corporations to file 46
61+an integrated resource plan every four years, with the first 47
62+integrated resource pla n or plans filing to occur not before 48
63+the first day of the nineteenth month after publication of 49
64+such schedule. Each electrical corporation shall, pursuant 50 SB 186 3
65+to the published schedule, file with the commission an 51
66+integrated resource plan that includes a n alternative 52
67+resource plan or plans meeting the requirements of 53
68+subdivision (3) of subsection 1 of this section, and such 54
69+other alternative resource plans as the electrical 55
70+corporation deems appropriate. All alternative resource 56
71+plans shall cover a minimum sixteen-year planning horizon. 57
72+All such plans shall reflect projections of an electrical 58
73+corporation's load obligations and how under each such plan 59
74+the electrical corporation would reliably meet its projected 60
75+load obligations over such period s consistent with 61
76+applicable planning reserve margins, local clearing 62
77+requirements, and applicable state and federal environmental 63
78+regulations, laws, or rules. 64
79+ 3. Without limiting the requirements set forth in 65
80+subsection 2 of this section, an ele ctrical corporation's 66
81+integrated resource plan filing shall include: 67
82+ (1) Information regarding generating units in the 68
83+electrical corporation's existing portfolio, including, but 69
84+not limited to, unit characteristics, current and expected 70
85+accredited capacity by season, licensing status, current 71
86+depreciation rates for each generating unit, currently 72
87+expected retirement dates and, if applicable, any remaining 73
88+useful life of each generating unit, and identification of 74
89+potential capital projects th at are reasonably expected to 75
90+result in the extension of the retirement date of each 76
91+generating unit; 77
92+ (2) Plans for meeting current and future generation 78
93+attribute needs, with estimates of the capital and operating 79
94+and maintenance costs over the planning horizon for all 80
95+proposed construction and major investments in new 81
96+generating units, including costs associated with 82 SB 186 4
97+transmission or distribution infrastructure that would be 83
98+required to integrate such investments into the electrical 84
99+corporation's system; 85
100+ (3) Identification of the generation attribute 86
101+necessary for the provision of safe and adequate service at 87
102+just and reasonable rates; 88
103+ (4) Analysis of the cost, performance, expected 89
104+accredited capacity by season, and viability of all 90
105+reasonable options available to meet projected generation 91
106+attribute needs, including, but not limited to, existing 92
107+electric generation facilities, and an explanation why an 93
108+electrical corporation selected the options outlined in the 94
109+plan; 95
110+ (5) Analysis of alternative resource plans to test 96
111+risk factors identified by the electrical corporation; 97
112+ (6) An explanation of how the electrical corporation 98
113+uses capacity expansion optimization software for the 99
114+development of alternative resour ce plans; 100
115+ (7) Projections of rate impacts including rate impacts 101
116+from fuel costs of the top four alternative resource plans 102
117+including the preferred plan for the periods covered by the 103
118+plan; 104
119+ (8) Forecasts of the electrical corporation's sales by 105
120+hour under reasonable scenarios; 106
121+ (9) The types of generation technologies proposed for 107
122+generation facilities contained in the plans and the 108
123+proposed accredited capacity of the generation facilities as 109
124+estimated by the corporation and the rele vant regional 110
125+transmission organization or independent system operator, 111
126+including projected fuel costs under reasonable scenarios; 112 SB 186 5
127+ (10) An analysis of potential new or upgraded electric 113
128+transmission and distribution options for the electrical 114
129+corporation; 115
130+ (11) Analysis of the projected firm gas transportation 116
131+contracts or natural gas storage the electrical corporation 117
132+will hold to provide an adequate supply of fuel to new 118
133+generation facilities; 119
134+ (12) Projected load management, demand response 120
135+impact, and peak demand reduction for the electrical 121
136+corporation, including, but not limited to, the magnitude of 122
137+expected load impacts during the anticipated hours, seasons, 123
138+and years and the projected costs for such plans; 124
139+ (13) An explanation of how the electrical corporation 125
140+will comply with all applicable state and federal 126
141+environmental regulations, laws, and rules, and the 127
142+projected costs of complying with those regulations, laws, 128
143+and rules; 129
144+ (14) Expected resource planning and system impacts of 130
145+draft programs and mechanisms associated with new load, 131
146+reduced load, or retained load associated with economic 132
147+development rates or riders and programs offered in 133
148+accordance with section 393.1075, as well as other programs 134
149+offered under current law; 135
150+ (15) Results from a request for information or 136
151+proposals to provide any new supply -side resources needed to 137
152+serve the corporation's projected electric load, applicable 138
153+planning reserve margin, and local clearing requirement 139
154+during the initial four -year planning period. The request 140
155+for information or proposals may define qualifying 141
156+performance standards, contract terms, technical competence, 142
157+capability, reliability, creditworthiness, past performance, 143
158+and other criteria that responses or respondents to the 144 SB 186 6
159+request for information shall meet in order to be considered 145
160+by the corporation in its integrated resource plan. 146
161+Respondents to a request for information or proposals may 147
162+request that certain proprietary informatio n be treated as 148
163+confidential or highly confidential pursuant to the 149
164+commission's governing rules. A corporation that issues a 150
165+request for information or proposals under this subsection 151
166+shall use the resulting information or proposals to inform 152
167+its integrated resource plan and include all of the 153
168+submitted information or proposals as attachments to its 154
169+integrated resource plan filing; 155
170+ (16) Selection of a preferred resource plan; 156
171+ (17) Delineation of an implementation plan covering a 157
172+four-year implementation period ending three hundred sixty - 158
173+five days after the electrical corporation's next -scheduled 159
174+quadrennial integrated resource plan filing, which shall 160
175+specify the construction or acquisition by the utility of 161
176+specific supply-side resources or a specified quantity of 162
177+supply-side resources by supply -side resource type, or both, 163
178+for which construction or acquisition is planned to commence 164
179+within said four-year implementation period; and 165
180+ (18) Any other information that the commis sion may 166
181+specify by rule. 167
182+ 4. The commission shall, after a hearing is conducted, 168
183+issue a report and order no later than three hundred sixty 169
184+days after the electrical corporation files an integrated 170
185+resource plan under this section, unless the com mission 171
186+grants itself an extension for good cause for the issuance 172
187+of the report and order. Up to one hundred fifty days after 173
188+an electrical corporation makes its initial integrated 174
189+resource plan filing, the electrical corporation may file an 175
190+update of the cost estimates provided under subdivision (2) 176 SB 186 7
191+of subsection 3 of this section if the cost estimates have 177
192+materially changed. An electrical corporation shall not 178
193+modify any other aspect of the initial integrated resource 179
194+plan filing unless the c ommission grants the electrical 180
195+corporation the ability to do so. The commission's report 181
196+and order shall determine whether the electrical corporation 182
197+has submitted sufficient documentation and selected a 183
198+preferred resource plan that represents a reas onable and 184
199+prudent means of meeting the electrical corporation's load 185
200+serving obligations at just and reasonable rates. In making 186
201+the determination, the commission shall consider whether the 187
202+plan appropriately balances all of the following factors: 188
203+ (a) Resource adequacy to serve anticipated peak 189
204+electric load and seasonal peak demand forecasts, applicable 190
205+planning reserve margin, local clearing requirements, and 191
206+the role of energy and capacity markets; 192
207+ (b) Reliability; 193
208+ (c) Rate impacts; 194
209+ (d) Overall cost-effectiveness in providing service; 195
210+ (e) Commodity price risks; 196
211+ (f) Diversity of supply-side resources; 197
212+ (g) Competitive pricing; 198
213+ (h) Participation in regional transmission 199
214+organization markets; and 200
215+ (i) Compliance with applicable state and federal 201
216+environmental regulations. 202
217+ 5. (1) If the commission determines that the 203
218+preferred resource plan is a reasonable and prudent means of 204
219+meeting the electrical corporation's load serving 205
220+obligations, such determination shall constitute the 206
221+commission's permission for the electrical corporation to 207
222+construct or acquire the specified supply -side resources, or 208 SB 186 8
223+a specified quantity of supply -side resources by supply -side 209
224+resource type, or both, that we re reflected in the 210
225+implementation plan submitted under subdivision (15) of 211
226+subsection 3 of this section, provided that construction 212
227+commences or the acquisition agreement is executed within 213
228+the four-year implementation period. With respect to such 214
229+resources, when the electrical corporation files an 215
230+application for a certificate of convenience and necessity 216
231+to authorize construction or acquisition of such resource or 217
232+resources pursuant to subsection 1 of section 393.170, the 218
233+commission shall be de emed to have determined that the 219
234+supply-side resources for which such a determination was 220
235+made are necessary or convenient for the public interest. 221
236+In such a certificate of convenience and necessity 222
237+proceeding, the commission's inquiry shall be limite d to 223
238+considering the electrical corporation's qualifications to 224
239+construct and operate the resources, the electrical 225
240+corporation's ability to finance the construction or 226
241+acquisition of the resources, and siting considerations. 227
242+The commission shall tak e all reasonable steps to expedite 228
243+such a certificate of convenience and necessity proceeding 229
244+and shall issue its decision in such a proceeding within one 230
245+hundred twenty days of the date that the electrical 231
246+corporation files its application. An electrical 232
247+corporation shall annually, or more frequently if required 233
248+by the commission, report to the commission the status of 234
249+supply-side resources being implemented during the 235
250+implementation period. 236
251+ (2) If the commission determines that the preferre d 237
252+resource plan, in whole or in part, is not a reasonable and 238
253+prudent means of meeting the electrical corporation's load 239
254+serving obligations, the commission shall have the authority 240 SB 186 9
255+to specify in its report and order the deficiencies in the 241
256+preferred resource plan and may require the electrical 242
257+corporation to make a further filing within sixty days after 243
258+issuance of the report and order addressing the deficiencies 244
259+and the electrical corporation may propose modifications to 245
260+its original preferred re source plan. If such an order 246
261+requiring a further filing by the electrical corporation is 247
262+issued, the commission's report and order issued under this 248
263+subsection shall not be final for purposes of rehearing 249
264+pursuant to section 386.500 or an appeal purs uant to section 250
265+386.510. Other parties to the integrated resource plan 251
266+docket shall have sixty days to respond to the electrical 252
267+corporation's further filing, unless the commission grants 253
268+an extension for good cause to respond to the electrical 254
269+corporation's further filing. Within sixty days after the 255
270+deadline for such other parties' filings, the commission 256
271+shall issue a report and order, which shall be final for 257
272+purposes of rehearing pursuant to section 386.500, and 258
273+appeal pursuant to section 38 6.510, indicating whether the 259
274+deficiencies have been cured by the electrical corporation's 260
275+further filing and the commission may approve the electrical 261
276+corporation's modified preferred resource plan and may 262
277+approve specific supply -side resources, or a specified 263
278+quantity of supply-side resources by supply -side resource 264
279+type, or both. If the commission finds continued 265
280+deficiencies in the electrical corporation's modified 266
281+preferred resource plan: 267
282+ (a) The commission may initiate a complaint procee ding 268
283+pursuant to the provisions of section 393.270; 269
284+ (b) The electrical corporation shall not be eligible 270
285+for a limited inquiry in any proceeding under section 271
286+393.170 as set forth in subdivision (1) of this subsection 272 SB 186 10
287+for any resource additions n ot approved by the commission; 273
288+and 274
289+ (c) The electrical corporation shall not be eligible 275
290+for construction work in progress as set forth in 276
291+subdivision (3) of this subsection for any resource 277
292+additions not approved by the commission. 278
293+ (3) Notwithstanding section 393.135 to the contrary, 279
294+if approved in a proceeding granting permission and approval 280
295+under subsection 1 of section 393.170, an electrical 281
296+corporation may be permitted to include in the corporation's 282
297+rate base any amounts recorded t o construction work in 283
298+progress for the investments for which permission is given 284
299+under subdivision (1) of subsection 5 of this section. The 285
300+inclusion of construction work in progress shall be in lieu 286
301+of any otherwise applicable allowance for funds us ed during 287
302+construction that would have accrued from and after the 288
303+effective date of new base rates that reflect inclusion of 289
304+the construction work in progress in rate base. The 290
305+commission shall determine, in a proceeding under section 291
306+393.170, the amount of construction work in progress that 292
307+may be included in rate base. The amount shall be limited 293
308+by: 294
309+ (a) The estimated cost of such project; and 295
310+ (b) Project expenditures made within the estimated 296
311+construction period for such project. Base rate recoveries 297
312+arising from inclusion of construction work in progress in 298
313+base rates are subject to refund, together with interest on 299
314+the refunded amount at the same rate as the rate of interest 300
315+for delinquent taxes determined by the director of r evenue 301
316+in accordance with section 32.065, if and to the extent the 302
317+commission determines, in a subsequent complaint or general 303
318+rate proceeding, that construction costs giving rise to the 304 SB 186 11
319+construction work in progress included in rate base were 305
320+imprudently incurred. Return deferred under subdivision (2) 306
321+of subsection 3 of section 393.1400 for plant that has been 307
322+included in base rates as construction work in progress 308
323+shall offset the amounts deferred under section 393.1400. 309
324+ 6. The commission shall promulgate rules necessary to 310
325+implement the provisions of this section. Any rule or 311
326+portion of a rule, as that term is defined in section 312
327+536.010, that is created under the authority delegated in 313
328+this section shall become effective only if it com plies with 314
329+and is subject to all of the provisions of chapter 536 and, 315
330+if applicable, section 536.028. This section and chapter 316
331+536 are nonseverable and if any of the powers vested with 317
332+the general assembly pursuant to chapter 536 to review, to 318
333+delay the effective date, or to disapprove and annul a rule 319
334+are subsequently held unconstitutional, then the grant of 320
335+rulemaking authority and any rule proposed or adopted after 321
336+August 28, 2025, shall be invalid and void. 322
337+ 7. As used in this section, th e following terms shall 323
338+mean: 324
339+ (1) "Firm gas transportation", an anticipated 325
340+agreement entered into between the electrical corporation 326
341+and a natural gas transmission provider for a set period of 327
342+time to provide firm delivery of natural gas to an e lectric 328
343+generation facility; 329
344+ (2) "Generation attribute", the capacity, energy, and 330
345+other generating unit capabilities used in regional energy 331
346+and capacity markets to differentiate services that can be 332
347+provided by various types of generating units . 333
348+