Missouri 2025 Regular Session

Missouri Senate Bill SB214 Compare Versions

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Old	New	Differences
1	1
2	2	EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
3	3	and is intended to be omitted in the law.
4	4	FIRST REGULAR SESSION
5	5	SENATE BILL NO. 214
6	6	103RD GENERAL ASSEMBLY
7	7	INTRODUCED BY SENATOR TRENT.
8	8	0086S.05I KRISTINA MARTIN, Secretary
9	9	AN ACT
10	10	To repeal sections 137.010, 137.080, 137.115, 137.122, 204.300, 204.610, 393.135, 393.150,
11	11	393.320, 393.1030, 393.1506, 393.1700, and 523.010, RSMo, and to enact in lieu
12	12	thereof sixteen new sections relating to utilities.
13	13
14	14	Be it enacted by the General Assembly of the State of Missouri, as follows:
15	15	Section A. Sections 137.010, 137.080, 137.115, 137.122, 1
16	16	204.300, 204.6 10, 393.135, 393.150, 393.320, 393.1030, 2
17	17	393.1506, 393.1700, and 523.010, RSMo, are repealed and sixteen 3
18	18	new sections enacted in lieu thereof, to be known as sections 4
19	19	137.010, 137.077, 137.080, 137.115, 137.122, 204.300, 204.610, 5
20	20	393.135, 393.150, 393.320, 393.1030, 393.1506, 393.1645, 6
21	21	393.1700, 393.1900, and 523.010, to read as follows:7
22	22	137.010. The following words, terms and phrases when 1
23	23	used in laws governing taxation and revenue in the state of 2
24	24	Missouri shall have the meanings ascribed to them in this 3
25	25	section, except when the context clearly indicates a 4
26	26	different meaning: 5
27	27	(1) "Grain and other agricultural crops in an 6
28	28	unmanufactured condition" shall mean grains and feeds 7
29	29	including, but not limited to, soybeans, cow peas, wheat, 8
30	30	corn, oats, barley, kafir, rye, flax, grain sorghums, 9
31	31	cotton, and such other products as are usually stored in 10
32	32	grain and other elevators and on farms; but excluding such 11
33	33	grains and other agricultural crops after being processed 12
34	34	into products of such processin g, when packaged or sacked. 13 SB 214 2
35	35	The term "processing" shall not include hulling, cleaning, 14
36	36	drying, grating, or polishing; 15
37	37	(2) "Hydroelectric power generating equipment", very - 16
38	38	low-head turbine generators with a nameplate generating 17
39	39	capacity of at least four hundred kilowatts but not more 18
40	40	than six hundred kilowatts and machinery and equipment used 19
41	41	directly in the production, generation, conversion, storage, 20
42	42	or conveyance of hydroelectric power to land -based devices 21
43	43	and appurtenances used in the tra nsmission of electrical 22
44	44	energy; 23
45	45	(3) "Intangible personal property", for the purpose of 24
46	46	taxation, shall include all property other than real 25
47	47	property and tangible personal property, as defined by this 26
48	48	section; 27
49	49	(4) "Real property" includes la nd itself, whether laid 28
50	50	out in town lots or otherwise, and all growing crops, 29
51	51	buildings, structures, improvements and fixtures of whatever 30
52	52	kind thereon, hydroelectric power generating equipment, the 31
53	53	installed poles used in the transmission or reception of 32
54	54	electrical energy, audio signals, video signals or similar 33
55	55	purposes, provided the owner of such installed poles is also 34
56	56	an owner of a fee simple interest, possessor of an easement, 35
57	57	holder of a license or franchise, or is the beneficiary of a 36
58	58	right-of-way dedicated for public utility purposes for the 37
59	59	underlying land; attached wires, transformers, amplifiers, 38
60	60	substations, and other such devices and appurtenances used 39
61	61	in the transmission or reception of electrical energy, audio 40
62	62	signals, video signals or similar purposes when owned by the 41
63	63	owner of the installed poles, otherwise such items are 42
64	64	considered personal property; and stationary property used 43
65	65	for transportation or storage of liquid and gaseous 44 SB 214 3
66	66	products, including, but not limited to, pet roleum products, 45
67	67	natural gas, propane or LP gas equipment, water, and sewage; 46
68	68	(5) "Reliever airport", any land and improvements, 47
69	69	exclusive of structures, on privately owned airports that 48
70	70	qualify as reliever airports under the National Plan of 49
71	71	Integrated Airport Systems that may receive federal airport 50
72	72	improvement project funds through the Federal Aviation 51
73	73	Administration; 52
74	74	(6) "Tangible personal property" includes every 53
75	75	tangible thing being the subject of ownership or part 54
76	76	ownership whether animate or inanimate, other than money, 55
77	77	and not forming part or parcel of real property as herein 56
78	78	defined, but does not include household goods, furniture, 57
79	79	wearing apparel and articles of personal use and adornment, 58
80	80	as defined by the state tax commis sion, owned and used by a 59
81	81	person in his home or dwelling place. "Tangible personal 60
82	82	property" shall include solar panels, racking systems, 61
83	83	inverters, and related solar equipment, components, 62
84	84	materials, and supplies installed at commercial solar 63
85	85	photovoltaic energy systems, as described in subdivision 64
86	86	(46) of subsection 2 of section 144.030, that were 65
87	87	constructed and producing solar energy prior to August 9, 66
88	88	2022. 67
89	89	137.077. 1. (1) Beginning January 1, 2026, for 1
90	90	purposes of assessing all real property, excluding land, or 2
91	91	tangible personal property associated with a project that 3
92	92	uses solar energy directly to generate electricity, the 4
93	93	assessor shall determine the true value in money of such 5
94	94	property, provided that all solar ener gy property built 6
95	95	prior to December 31, 2025, or with a placard output value 7
96	96	of one megawatt or less shall be considered to be de minimis 8
97	97	in value. The assessor shall request any documentation 9 SB 214 4
98	98	necessary to determine the true value in money of such 10
99	99	property. 11
100	100	(2) Notwithstanding the provisions of subdivision (1) 12
101	101	of this subsection to the contrary, the tax liability 13
102	102	actually owed for solar energy property that was built prior 14
103	103	to December 31, 2025, shall not exceed five hundred dollars 15
104	104	per megawatt. For such projects for which the land 16
105	105	associated with such project is reclassified due to the 17
106	106	project, the property tax liability incurred from such land 18
107	107	shall be included in the limit established in this 19
108	108	subdivision. 20
109	109	2. Nothing in this sect ion shall be construed to 21
110	110	prohibit an entity from engaging in a project which was 22
111	111	originally constructed utilizing financing authorized 23
112	112	pursuant to chapter 100 for construction, from engaging in 24
113	113	enhanced enterprise zone agreements under sections 135.95 0 25
114	114	to 135.973 or similar tax abatement agreements authorized 26
115	115	pursuant to state law with state or local officials, or to 27
116	116	affect any existing enhanced enterprise zone or chapter 100 28
117	117	agreements. 29
118	118	3. Notwithstanding any provision of law to the 30
119	119	contrary, no taxpayer shall be liable for property taxes not 31
120	120	paid in any tax year on property that was exempted from 32
121	121	property tax pursuant to section 137.100 during such tax 33
122	122	year. 34
123	123	4. The provisions of this section shall expire on 35
124	124	December 31, 2050. 36
125	125	137.080. Real estate and tangible personal property 1
126	126	shall be assessed annually at the assessment which commences 2
127	127	on the first day of January. For purposes of assessing and 3
128	128	taxing tangible personal property, all tangible personal 4
129	129	property shall be divided into the following subclasses: 5 SB 214 5
130	130	(1) Grain and other agricultural crops in an 6
131	131	unmanufactured condition; 7
132	132	(2) Livestock; 8
133	133	(3) Farm machinery; 9
134	134	(4) Vehicles, including recreational vehicles, but not 10
135	135	including manufactured homes, as defined in section 700.010, 11
136	136	which are actually used as dwelling units; 12
137	137	(5) Manufactured homes, as defined in section 700.010, 13
138	138	which are actually used as dwelling units; 14
139	139	(6) Motor vehicles which are eligible for registratio n 15
140	140	and are registered as historic motor vehicles under section 16
141	141	301.131; 17
142	142	(7) Solar panels, racking systems, inverters, and 18
143	143	related solar equipment, components, materials, and supplies 19
144	144	installed at commercial solar photovoltaic energy systems, 20
145	145	as described in subdivision (46) of subsection 2 of section 21
146	146	144.030, that were constructed and producing solar energy 22
147	147	prior to August 9, 2022; and 23
148	148	(8) All taxable tangible personal property not 24
149	149	included in subclass (1), subclass (2), subclass (3), 25
150	150	subclass (4), subclass (5), [or] subclass (6), or subclass 26
151	151	(7). 27
152	152	137.115. 1. All other laws to the contrary 1
153	153	notwithstanding, the assessor or the assessor's deputies in 2
154	154	all counties of this state including the City of St. Louis 3
155	155	shall annually make a list of all real and tangible personal 4
156	156	property taxable in the assessor's city, county, town or 5
157	157	district. Except as otherwise provided in subsection 3 of 6
158	158	this section and section 137.078, the assessor shall 7
159	159	annually assess all personal p roperty at thirty-three and 8
160	160	one-third percent of its true value in money as of January 9
161	161	first of each calendar year. The assessor shall annually 10 SB 214 6
162	162	assess all real property, including any new construction and 11
163	163	improvements to real property, and possessory interests in 12
164	164	real property at the percent of its true value in money set 13
165	165	in subsection 5 of this section. The true value in money of 14
166	166	any possessory interest in real property in subclass (3), 15
167	167	where such real property is on or lies within the ultimate 16
168	168	airport boundary as shown by a federal airport layout plan, 17
169	169	as defined by 14 CFR 151.5, of a commercial airport having a 18
170	170	FAR Part 139 certification and owned by a political 19
171	171	subdivision, shall be the otherwise applicable true value in 20
172	172	money of any such possessory interest in real property, less 21
173	173	the total dollar amount of costs paid by a party, other than 22
174	174	the political subdivision, towards any new construction or 23
175	175	improvements on such real property completed after January 24
176	176	1, 2008, and which are include d in the above-mentioned 25
177	177	possessory interest, regardless of the year in which such 26
178	178	costs were incurred or whether such costs were considered in 27
179	179	any prior year. The assessor shall annually assess all real 28
180	180	property in the following manner: new assessed values shall 29
181	181	be determined as of January first of each odd -numbered year 30
182	182	and shall be entered in the assessor's books; those same 31
183	183	assessed values shall apply in the following even -numbered 32
184	184	year, except for new construction and property improvements 33
185	185	which shall be valued as though they had been completed as 34
186	186	of January first of the preceding odd -numbered year. The 35
187	187	assessor may call at the office, place of doing business, or 36
188	188	residence of each person required by this chapter to list 37
189	189	property, and require the person to make a correct statement 38
190	190	of all taxable tangible personal property owned by the 39
191	191	person or under his or her care, charge or management, 40
192	192	taxable in the county. On or before January first of each 41
193	193	even-numbered year, the assessor shall p repare and submit a 42 SB 214 7
194	194	two-year assessment maintenance plan to the county governing 43
195	195	body and the state tax commission for their respective 44
196	196	approval or modification. The county governing body shall 45
197	197	approve and forward such plan or its alternative to the p lan 46
198	198	to the state tax commission by February first. If the 47
199	199	county governing body fails to forward the plan or its 48
200	200	alternative to the plan to the state tax commission by 49
201	201	February first, the assessor's plan shall be considered 50
202	202	approved by the county gov erning body. If the state tax 51
203	203	commission fails to approve a plan and if the state tax 52
204	204	commission and the assessor and the governing body of the 53
205	205	county involved are unable to resolve the differences, in 54
206	206	order to receive state cost -share funds outlined in section 55
207	207	137.750, the county or the assessor shall petition the 56
208	208	administrative hearing commission, by May first, to decide 57
209	209	all matters in dispute regarding the assessment maintenance 58
210	210	plan. Upon agreement of the parties, the matter may be 59
211	211	stayed while the parties proceed with mediation or 60
212	212	arbitration upon terms agreed to by the parties. The final 61
213	213	decision of the administrative hearing commission shall be 62
214	214	subject to judicial review in the circuit court of the 63
215	215	county involved. In the event a valuation of subclass (1) 64
216	216	real property within any county with a charter form of 65
217	217	government, or within a city not within a county, is made by 66
218	218	a computer, computer -assisted method or a computer program, 67
219	219	the burden of proof, supported by clear, convincing an d 68
220	220	cogent evidence to sustain such valuation, shall be on the 69
221	221	assessor at any hearing or appeal. In any such county, 70
222	222	unless the assessor proves otherwise, there shall be a 71
223	223	presumption that the assessment was made by a computer, 72
224	224	computer-assisted method or a computer program. Such 73 SB 214 8
225	225	evidence shall include, but shall not be limited to, the 74
226	226	following: 75
227	227	(1) The findings of the assessor based on an appraisal 76
228	228	of the property by generally accepted appraisal techniques; 77
229	229	and 78
230	230	(2) The purchase prices from sales of at least three 79
231	231	comparable properties and the address or location thereof. 80
232	232	As used in this subdivision, the word "comparable" means 81
233	233	that: 82
234	234	(a) Such sale was closed at a date relevant to the 83
235	235	property valuation; and 84
236	236	(b) Such properties are not more than one mile from 85
237	237	the site of the disputed property, except where no similar 86
238	238	properties exist within one mile of the disputed property, 87
239	239	the nearest comparable property shall be used. Such 88
240	240	property shall be within five hundred sq uare feet in size of 89
241	241	the disputed property, and resemble the disputed property in 90
242	242	age, floor plan, number of rooms, and other relevant 91
243	243	characteristics. 92
244	244	2. Assessors in each county of this state and the City 93
245	245	of St. Louis may send personal property assessment forms 94
246	246	through the mail. 95
247	247	3. The following items of personal property shall each 96
248	248	constitute separate subclasses of tangible personal property 97
249	249	and shall be assessed and valued for the purposes of 98
250	250	taxation at the following percentages of their true value in 99
251	251	money: 100
252	252	(1) Grain and other agricultural crops in an 101
253	253	unmanufactured condition, one -half of one percent; 102
254	254	(2) Livestock, twelve percent; 103
255	255	(3) Farm machinery, twelve percent; 104 SB 214 9
256	256	(4) Motor vehicles which are eligible fo r registration 105
257	257	as and are registered as historic motor vehicles pursuant to 106
258	258	section 301.131 and aircraft which are at least twenty -five 107
259	259	years old and which are used solely for noncommercial 108
260	260	purposes and are operated less than two hundred hours per 109
261	261	year or aircraft that are home built from a kit, five 110
262	262	percent; 111
263	263	(5) Poultry, twelve percent; [and] 112
264	264	(6) Tools and equipment used for pollution control and 113
265	265	tools and equipment used in retooling for the purpose of 114
266	266	introducing new product lines or u sed for making 115
267	267	improvements to existing products by any company which is 116
268	268	located in a state enterprise zone and which is identified 117
269	269	by any standard industrial classification number cited in 118
270	270	subdivision (7) of section 135.200, twenty -five percent; and 119
271	271	(7) Solar panels, racking systems, inverters, and 120
272	272	related solar equipment, components, materials, and supplies 121
273	273	installed at commercial solar photovoltaic energy systems, 122
274	274	as described in subdivision (46) of subsection 2 of section 123
275	275	144.030, that were constructed and producing solar energy 124
276	276	prior to August 9, 2022, three percent . 125
277	277	4. The person listing the property shall enter a true 126
278	278	and correct statement of the property, in a printed blank 127
279	279	prepared for that purpose. The statement, after being 128
280	280	filled out, shall be signed and either affirmed or sworn to 129
281	281	as provided in section 137.155. The list shall then be 130
282	282	delivered to the assessor. 131
283	283	5. (1) All subclasses of real property, as such 132
284	284	subclasses are established in Section 4(b) of Article X of 133
285	285	the Missouri Constitution and defined in section 137.016, 134
286	286	shall be assessed at the following percentages of true value: 135 SB 214 10
287	287	(a) For real property in subclass (1), nineteen 136
288	288	percent; 137
289	289	(b) For real property in subclass (2), twelve percent; 138
290	290	and 139
291	291	(c) For real property in subclass (3), thirty -two 140
292	292	percent. 141
293	293	(2) A taxpayer may apply to the county assessor, or, 142
294	294	if not located within a county, then the assessor of such 143
295	295	city, for the reclassification of such taxpayer's real 144
296	296	property if the use or purpose of such real property is 145
297	297	changed after such property is assessed under the provisions 146
298	298	of this chapter. If the assessor determines that such 147
299	299	property shall be reclassified, he or she shall determine 148
300	300	the assessment under this subsectio n based on the percentage 149
301	301	of the tax year that such property was classified in each 150
302	302	subclassification. 151
303	303	6. Manufactured homes, as defined in section 700.010, 152
304	304	which are actually used as dwelling units shall be assessed 153
305	305	at the same percentage of tru e value as residential real 154
306	306	property for the purpose of taxation. The percentage of 155
307	307	assessment of true value for such manufactured homes shall 156
308	308	be the same as for residential real property. If the county 157
309	309	collector cannot identify or find the manufactu red home when 158
310	310	attempting to attach the manufactured home for payment of 159
311	311	taxes owed by the manufactured home owner, the county 160
312	312	collector may request the county commission to have the 161
313	313	manufactured home removed from the tax books, and such 162
314	314	request shall be granted within thirty days after the 163
315	315	request is made; however, the removal from the tax books 164
316	316	does not remove the tax lien on the manufactured home if it 165
317	317	is later identified or found. For purposes of this section, 166
318	318	a manufactured home located in a m anufactured home rental 167 SB 214 11
319	319	park, rental community or on real estate not owned by the 168
320	320	manufactured home owner shall be considered personal 169
321	321	property. For purposes of this section, a manufactured home 170
322	322	located on real estate owned by the manufactured home ow ner 171
323	323	may be considered real property. 172
324	324	7. Each manufactured home assessed shall be considered 173
325	325	a parcel for the purpose of reimbursement pursuant to 174
326	326	section 137.750, unless the manufactured home is deemed to 175
327	327	be real estate as defined in subsection 7 of section 442.015 176
328	328	and assessed as a realty improvement to the existing real 177
329	329	estate parcel. 178
330	330	8. Any amount of tax due and owing based on the 179
331	331	assessment of a manufactured home shall be included on the 180
332	332	personal property tax statement of the manufac tured home 181
333	333	owner unless the manufactured home is deemed to be real 182
334	334	estate as defined in subsection 7 of section 442.015, in 183
335	335	which case the amount of tax due and owing on the assessment 184
336	336	of the manufactured home as a realty improvement to the 185
337	337	existing real estate parcel shall be included on the real 186
338	338	property tax statement of the real estate owner. 187
339	339	9. The assessor of each county and each city not 188
340	340	within a county shall use the trade -in value published in 189
341	341	the October issue of the National Automobil e Dealers' 190
342	342	Association Official Used Car Guide, or its successor 191
343	343	publication, as the recommended guide of information for 192
344	344	determining the true value of motor vehicles described in 193
345	345	such publication. The assessor shall not use a value that 194
346	346	is greater than the average trade -in value in determining 195
347	347	the true value of the motor vehicle without performing a 196
348	348	physical inspection of the motor vehicle. For vehicles two 197
349	349	years old or newer from a vehicle's model year, the assessor 198
350	350	may use a value other than a verage without performing a 199 SB 214 12
351	351	physical inspection of the motor vehicle. In the absence of 200
352	352	a listing for a particular motor vehicle in such 201
353	353	publication, the assessor shall use such information or 202
354	354	publications which in the assessor's judgment will fairly 203
355	355	estimate the true value in money of the motor vehicle. 204
356	356	10. Before the assessor may increase the assessed 205
357	357	valuation of any parcel of subclass (1) real property by 206
358	358	more than fifteen percent since the last assessment, 207
359	359	excluding increases due to new construction or improvements, 208
360	360	the assessor shall conduct a physical inspection of such 209
361	361	property. 210
362	362	11. If a physical inspection is required, pursuant to 211
363	363	subsection 10 of this section, the assessor shall notify the 212
364	364	property owner of that fact in wri ting and shall provide the 213
365	365	owner clear written notice of the owner's rights relating to 214
366	366	the physical inspection. If a physical inspection is 215
367	367	required, the property owner may request that an interior 216
368	368	inspection be performed during the physical inspecti on. The 217
369	369	owner shall have no less than thirty days to notify the 218
370	370	assessor of a request for an interior physical inspection. 219
371	371	12. A physical inspection, as required by subsection 220
372	372	10 of this section, shall include, but not be limited to, an 221
373	373	on-site personal observation and review of all exterior 222
374	374	portions of the land and any buildings and improvements to 223
375	375	which the inspector has or may reasonably and lawfully gain 224
376	376	external access, and shall include an observation and review 225
377	377	of the interior of any b uildings or improvements on the 226
378	378	property upon the timely request of the owner pursuant to 227
379	379	subsection 11 of this section. Mere observation of the 228
380	380	property via a drive -by inspection or the like shall not be 229
381	381	considered sufficient to constitute a physical inspection as 230
382	382	required by this section. 231 SB 214 13
383	383	13. A county or city collector may accept credit cards 232
384	384	as proper form of payment of outstanding property tax or 233
385	385	license due. No county or city collector may charge 234
386	386	surcharge for payment by credit card whi ch exceeds the fee 235
387	387	or surcharge charged by the credit card bank, processor, or 236
388	388	issuer for its service. A county or city collector may 237
389	389	accept payment by electronic transfers of funds in payment 238
390	390	of any tax or license and charge the person making such 239
391	391	payment a fee equal to the fee charged the county by the 240
392	392	bank, processor, or issuer of such electronic payment. 241
393	393	14. Any county or city not within a county in this 242
394	394	state may, by an affirmative vote of the governing body of 243
395	395	such county, opt out of th e provisions of this section and 244
396	396	sections 137.073, 138.060, and 138.100 as enacted by house 245
397	397	bill no. 1150 of the ninety -first general assembly, second 246
398	398	regular session and section 137.073 as modified by house 247
399	399	committee substitute for senate substitute f or senate 248
400	400	committee substitute for senate bill no. 960, ninety -second 249
401	401	general assembly, second regular session, for the next year 250
402	402	of the general reassessment, prior to January first of any 251
403	403	year. No county or city not within a county shall exercise 252
404	404	this opt-out provision after implementing the provisions of 253
405	405	this section and sections 137.073, 138.060, and 138.100 as 254
406	406	enacted by house bill no. 1150 of the ninety -first general 255
407	407	assembly, second regular session and section 137.073 as 256
408	408	modified by house co mmittee substitute for senate substitute 257
409	409	for senate committee substitute for senate bill no. 960, 258
410	410	ninety-second general assembly, second regular session, in a 259
411	411	year of general reassessment. For the purposes of applying 260
412	412	the provisions of this subsection , a political subdivision 261
413	413	contained within two or more counties where at least one of 262
414	414	such counties has opted out and at least one of such 263 SB 214 14
415	415	counties has not opted out shall calculate a single tax rate 264
416	416	as in effect prior to the enactment of house bill no . 1150 265
417	417	of the ninety-first general assembly, second regular 266
418	418	session. A governing body of a city not within a county or 267
419	419	a county that has opted out under the provisions of this 268
420	420	subsection may choose to implement the provisions of this 269
421	421	section and sections 137.073, 138.060, and 138.100 as 270
422	422	enacted by house bill no. 1150 of the ninety -first general 271
423	423	assembly, second regular session, and section 137.073 as 272
424	424	modified by house committee substitute for senate substitute 273
425	425	for senate committee substitute for s enate bill no. 960, 274
426	426	ninety-second general assembly, second regular session, for 275
427	427	the next year of general reassessment, by an affirmative 276
428	428	vote of the governing body prior to December thirty -first of 277
429	429	any year. 278
430	430	15. The governing body of any city of the third 279
431	431	classification with more than twenty -six thousand three 280
432	432	hundred but fewer than twenty -six thousand seven hundred 281
433	433	inhabitants located in any county that has exercised its 282
434	434	authority to opt out under subsection 14 of this section may 283
435	435	levy separate and differing tax rates for real and personal 284
436	436	property only if such city bills and collects its own 285
437	437	property taxes or satisfies the entire cost of the billing 286
438	438	and collection of such separate and differing tax rates. 287
439	439	Such separate and differing rat es shall not exceed such 288
440	440	city's tax rate ceiling. 289
441	441	16. Any portion of real property that is available as 290
442	442	reserve for strip, surface, or coal mining for minerals for 291
443	443	purposes of excavation for future use or sale to others that 292
444	444	has not been bonded a nd permitted under chapter 444 shall be 293
445	445	assessed based upon how the real property is currently being 294
446	446	used. Any information provided to a county assessor, state 295 SB 214 15
447	447	tax commission, state agency, or political subdivision 296
448	448	responsible for the administration o f tax policies shall, in 297
449	449	the performance of its duties, make available all books, 298
450	450	records, and information requested, except such books, 299
451	451	records, and information as are by law declared confidential 300
452	452	in nature, including individually identifiable informa tion 301
453	453	regarding a specific taxpayer or taxpayer's mine property. 302
454	454	For purposes of this subsection, "mine property" shall mean 303
455	455	all real property that is in use or readily available as a 304
456	456	reserve for strip, surface, or coal mining for minerals for 305
457	457	purposes of excavation for current or future use or sale to 306
458	458	others that has been bonded and permitted under chapter 444. 307
459	459	137.122. 1. As used in this section, the following 1
460	460	terms mean: 2
461	461	(1) "Business personal property", tangible persona l 3
462	462	property which is used in a trade or business or used for 4
463	463	production of income and which has a determinable life of 5
464	464	longer than one year except that supplies used by a business 6
465	465	shall also be considered business personal property, but 7
466	466	shall not include livestock, farm machinery, grain and other 8
467	467	agricultural crops in an unmanufactured condition, property 9
468	468	subject to the motor vehicle registration provisions of 10
469	469	chapter 301, property assessed under section 137.078, the 11
470	470	property of rural electric coope ratives under chapter 394, 12
471	471	or property assessed by the state tax commission under 13
472	472	chapters 151, 153, and 155, section 137.022, and sections 14
473	473	137.1000 to 137.1030; 15
474	474	(2) "Class life", the class life of property as set 16
475	475	out in the federal Modified Acce lerated Cost Recovery System 17
476	476	life tables or their successors under the Internal Revenue 18
477	477	Code as amended; 19 SB 214 16
478	478	(3) "Economic or functional obsolescence", a loss in 20
479	479	value of personal property above and beyond physical 21
480	480	deterioration and age of the proper ty. Such loss may be the 22
481	481	result of economic or functional obsolescence or both; 23
482	482	(4) "Original cost", the price the current owner, the 24
483	483	taxpayer, paid for the item without freight, installation, 25
484	484	or sales or use tax. In the case of acquisition of i tems of 26
485	485	personal property as part of an acquisition of an entity, 27
486	486	the original cost shall be the historical cost of those 28
487	487	assets remaining in place and in use and the placed -in- 29
488	488	service date shall be the date of acquisition by the entity 30
489	489	being acquired; 31
490	490	(5) "Placed in service", property is placed in service 32
491	491	when it is ready and available for a specific use, whether 33
492	492	in a business activity, an income -producing activity, a tax - 34
493	493	exempt activity, or a personal activity. Even if the 35
494	494	property is not being used, the property is in service when 36
495	495	it is ready and available for its specific use; 37
496	496	(6) "Recovery period", the period over which the 38
497	497	original cost of depreciable tangible personal property 39
498	498	shall be depreciated for property tax purposes and shall be 40
499	499	the same as the recovery period allowed for such property 41
500	500	under the Internal Revenue Code. 42
501	501	2. To establish uniformity in the assessment of 43
502	502	depreciable tangible personal property, each assessor shall 44
503	503	use the standardized schedule of depr eciation in this 45
504	504	section to determine the assessed valuation of depreciable 46
505	505	tangible personal property for the purpose of estimating the 47
506	506	value of such property subject to taxation under this 48
507	507	chapter. 49
508	508	3. For purposes of this section, and to estima te the 50
509	509	value of depreciable tangible personal property for mass 51 SB 214 17
510	510	appraisal purposes, each assessor shall value depreciable 52
511	511	tangible personal property by applying the class life and 53
512	512	recovery period to the original cost of the property 54
513	513	according to the following depreciation schedule. The 55
514	514	percentage shown for the first year shall be the percentage 56
515	515	of the original cost used for January first of the year 57
516	516	following the year of acquisition of the property, and the 58
517	517	percentage shown for each succeeding yea r shall be the 59
518	518	percentage of the original cost used for January first of 60
519	519	the respective succeeding year as follows: 61
520	520	62 Year Recovery Period in Years
521	521	63 3 5 7 10 15 20
522	522	64 1 75.00 85.00 89.29 92.50 95.00 96.25
523	523	65 2 37.50 59.50 70.16 78.62 85.50 89.03
524	524	66 3 12.50 41.65 55.13 66.83 76.95 82.35
525	525	67 4 5.00 24.99 42.88 56.81 69.25 76.18
526	526	68 5 10.00 30.63 48.07 62.32 70.46
527	527	69 6 18.38 39.33 56.09 65.18
528	528	70 7 10.00 30.59 50.19 60.29
529	529	71 8 21.85 44.29 55.77
530	530	72 9 15.00 38.38 51.31
531	531	73 10 32.48 46.85
532	532	74 11 26.57 42.38
533	533	75 12 20.67 37.92
534	534	76 13 15.00 33.46
535	535	77 14 29.00
536	536	78 15 24.54
537	537	79 16 20.08
538	538	80 17 20.00 SB 214 18
539	539	Depreciable tangible personal property in all recovery 81
540	540	periods shall continue in subsequent years to have the 82
541	541	depreciation factor last listed in the appropriate column so 83
542	542	long as it is owned or held by the taxpayer. The state tax 84
543	543	commission shall study and analyze the values established by 85
544	544	this method of assessment and in every odd -numbered year 86
545	545	make recommendations to the joint committee on tax policy 87
546	546	pertaining to any changes in this methodology, if any, that 88
547	547	are warranted. 89
548	548	4. Such estimate of value determined under this 90
549	549	section shall be presumed to be correct for the purpose of 91
550	550	determining the true value in money of the depreciable 92
551	551	tangible personal property , but such estimation may be 93
552	552	disproved by a taxpayer by substantial and persuasive 94
553	553	evidence of the true value in money under any method 95
554	554	determined by the state tax commission to be correct, 96
555	555	including, but not limited to, an appraisal of the tangible 97
556	556	personal property specifically utilizing generally accepted 98
557	557	appraisal techniques, and contained in a narrative appraisal 99
558	558	report in accordance with the Uniform Standards of 100
559	559	Professional Appraisal Practice or by proof of economic or 101
560	560	functional obsolescenc e or evidence of excessive physical 102
561	561	deterioration. For purposes of appeal of the provisions of 103
562	562	this section, the salvage or scrap value of depreciable 104
563	563	tangible personal property may only be considered if the 105
564	564	property is not in use as of the assessment date. 106
565	565	5. This section shall not apply to business personal 107
566	566	property placed in service before January 2, 2006. Nothing 108
567	567	in this section shall create a presumption as to the proper 109
568	568	method of determining the assessed valuation of business 110
569	569	personal property placed in service before January 2, 2006. 111 SB 214 19
570	570	6. The provisions of this section are not intended to 112
571	571	modify the definition of tangible personal property as 113
572	572	defined in section 137.010. 114
573	573	7. (1) As of January 1, 2026, this section shall 115
574	574	apply to all real property, placed in service at any time, 116
575	575	that is stationary property used for transportation or 117
576	576	storage of liquid and gaseous products including water, 118
577	577	sewage, and natural gas that is not propane or LP gas, but 119
578	578	not including petroleum pr oducts. 120
579	579	(2) To estimate the value of the real property 121
580	580	described in this subsection, each assessor shall value such 122
581	581	property by applying a twenty -year recovery period to the 123
582	582	original cost of the property according to the twenty -year 124
583	583	depreciation schedule set forth in subsection 3 of this 125
584	584	section. Notwithstanding subsection 5 of this section to 126
585	585	the contrary, the presumption as to the proper method of 127
586	586	determining the assessed value of such property shall apply 128
587	587	regardless of when such property w as placed in service. 129
588	588	(3) Each taxpayer owning real property described in 130
589	589	this subsection shall provide to an assessor, no later than 131
590	590	May first of the applicable tax year, the original cost and 132
591	591	year placed in service of such property summarized in a 133
592	592	format that is substantially similar to the real property 134
593	593	reporting and valuation forms contained in section 7.4 of 135
594	594	the state tax commission assessor manual (revision date 136
595	595	March 23, 2016, or any revision adopted by the state tax 137
596	596	commission thereafter). Upon the written request of the 138
597	597	assessor, such information shall be provided for each taxing 139
598	598	district within the assessor's jurisdiction. If requested 140
599	599	by the taxpayer, the assessor shall provide to the taxpayer 141
600	600	geographic information system maps in readable layers on 142
601	601	which a taxpayer may provide the information in this 143 SB 214 20
602	602	subsection. The taxpayer shall certify under penalty of 144
603	603	perjury that the information provided to the assessor 145
604	604	pursuant to this subsection is accurate to the best of its 146
605	605	knowledge. All information provided to an assessor pursuant 147
606	606	to this subsection shall be considered proprietary 148
607	607	information and shall be accessible only to the assessor and 149
608	608	the assessor's staff for internal use only. 150
609	609	204.300. 1. In all counties except counties of the 1
610	610	first classification which have a charter form of government 2
611	611	and which contain all or any portion of a city with a 3
612	612	population of three hundred fifty thousand or more 4
613	613	inhabitants, the governing body of the county, by 5
614	614	resolution, order, or ordinance, shall appoint five 6
615	615	trustees, the majority of whom shall reside within the 7
616	616	boundaries of the district. In the event the district 8
617	617	extends into any county bordering the county in which the 9
618	618	greater portion of the district li es, the presiding 10
619	619	commissioner or other chief executive officer of the 11
620	620	adjoining county shall be an additional member of the 12
621	621	appointed board of trustees. Subject to the provisions of 13
622	622	section 105.454, the trustees may be paid reasonable 14
623	623	compensation by the district for their services [; except 15
624	624	that, any compensation schedule shall be approved by 16
625	625	resolution of the board of trustees ] outside their duties as 17
626	626	trustees. Each trustee of the board may receive an 18
627	627	attendance fee not to exceed one hundred do llars for 19
628	628	attending each regularly called board meeting, or special 20
629	629	meeting, but shall not be paid for attending more than two 21
630	630	meetings in any calendar month, except that in a county of 22
631	631	the first classification, a trustee shall not be paid for 23
632	632	attending more than four meetings in any calendar month. 24
633	633	However, no trustee shall be paid more than one attendance 25 SB 214 21
634	634	fee if such trustee attends more than one board meeting in a 26
635	635	calendar week. Each trustee of the board shall be 27
636	636	reimbursed for his or her actu al expenditures in the 28
637	637	performance of his or her duties on behalf of the district . 29
638	638	The board of trustees shall be responsible for the control 30
639	639	and operation of the sewer district. The term of each board 31
640	640	member shall be five years; except that, members of the 32
641	641	governing body of the county sitting upon the board shall 33
642	642	not serve beyond the expiration of their term as members of 34
643	643	such governing body of the county. The first board of 35
644	644	trustees shall be appointed for terms ranging from one to 36
645	645	five years so as to establish one vacancy per year 37
646	646	thereafter. If the governing body of the county with the 38
647	647	right of appointment under this section fails to appoint a 39
648	648	trustee to fill a vacancy on the board within sixty days 40
649	649	after receiving written notice from the common sewer 41
650	650	district of the existence of such vacancy, then the vacancy 42
651	651	may be filled by a majority of the remaining members then in 43
652	652	office of the board of trustees of such common sewer 44
653	653	district. Subject to the provisions of section 105.454, the 45
654	654	trustees may be paid reasonable compensation by the district 46
655	655	for their services[; except that, any compensation schedule 47
656	656	shall be approved by resolution, order, or ordinance of the 48
657	657	governing body of the county. Any and all expenses incurred 49
658	658	in the performance of their duties shall be reimbursed by 50
659	659	the district] outside their duties as trustees. Each 51
660	660	trustee of the board may receive an attendance fee not to 52
661	661	exceed one hundred dollars for attending each regularly 53
662	662	called board meeting, or special meeti ng, but shall not be 54
663	663	paid for attending more than two meetings in any calendar 55
664	664	month, except that in a county of the first classification, 56
665	665	a trustee shall not be paid for attending more than four 57 SB 214 22
666	666	meetings in any calendar month. However, no trustee sha ll 58
667	667	be paid more than one attendance fee if such trustee attends 59
668	668	more than one board meeting in a calendar week. Each 60
669	669	trustee of the board shall be reimbursed for his or her 61
670	670	actual expenditures in the performance of his or her duties 62
671	671	on behalf of the district. The board of trustees shall have 63
672	672	the power to employ and fix the compensation of such staff 64
673	673	as may be necessary to discharge the business and purposes 65
674	674	of the district, including clerks, attorneys, administrative 66
675	675	assistants, and any other nec essary personnel. The board of 67
676	676	trustees shall select a treasurer, who may be either a 68
677	677	member of the board of trustees or another qualified 69
678	678	individual. The treasurer selected by the board shall give 70
679	679	such bond as may be required by the board of trustee s. The 71
680	680	board of trustees shall appoint the sewer engineer for the 72
681	681	county in which the greater part of the district lies as 73
682	682	chief engineer for the district, and the sewer engineer 74
683	683	shall have the same powers, responsibilities and duties in 75
684	684	regard to planning, construction and maintenance of the 76
685	685	sewers, and treatment facilities of the district as he now 77
686	686	has by virtue of law in regard to the sewer facilities 78
687	687	within the county for which he is elected. If there is no 79
688	688	sewer engineer in the county in whi ch the greater part of 80
689	689	the district lies, the board of trustees may employ a 81
690	690	registered professional engineer as chief engineer for the 82
691	691	district under such terms and conditions as may be necessary 83
692	692	to discharge the business and purposes of the district. The 84
693	693	provisions of this subsection shall not apply to any county 85
694	694	of the first classification which has a charter form of 86
695	695	government and which contains all or any portion of a city 87
696	696	with a population of three hundred fifty thousand or more 88
697	697	inhabitants. 89 SB 214 23
698	698	2. In any county of the first classification which has 90
699	699	a charter form of government and which contains all or any 91
700	700	portion of a city with a population of three hundred fifty 92
701	701	thousand or more inhabitants, [and in any county of the 93
702	702	first classification without a charter form of government 94
703	703	and which has a population of more than sixty -three thousand 95
704	704	seven hundred but less than seventy -five thousand,] there 96
705	705	shall be a ten-member board of trustees to consist of the 97
706	706	county executive, the mayors of t he five cities constituting 98
707	707	the largest users by flow during the previous fiscal year, 99
708	708	the mayors of three cities which are not among the five 100
709	709	largest users and who are members of the advisory board of 101
710	710	the district established pursuant to section 204.3 10, and 102
711	711	one member of the county legislature to be appointed by the 103
712	712	county executive, with the concurrence of the county 104
713	713	legislature. If the county executive does not appoint such 105
714	714	members of the county legislature to the board of trustees 106
715	715	within sixty days, the county legislature shall make the 107
716	716	appointments. The advisory board members shall be appointed 108
717	717	annually by the advisory board. In the event the district 109
718	718	extends into any county bordering the county in which the 110
719	719	greater portion of the distr ict lies, the number of members 111
720	720	on the board of trustees shall be increased to a total of 112
721	721	eleven and the presiding commissioner or county executive of 113
722	722	the adjoining county shall be an additional member of the 114
723	723	board of trustees. The trustees of a district with an 115
724	724	eleven-member board and located in two counties shall 116
725	725	receive no compensation for their services [,] but may be 117
726	726	compensated for their reasonable expenses normally incurred 118
727	727	in the performance of their duties. Each trustee of a ten - 119
728	728	member board may receive an attendance fee not to exceed one 120
729	729	hundred dollars for attending each regularly called board 121 SB 214 24
730	730	meeting, or special meeting, but shall not be paid for 122
731	731	attending more than two meetings in any calendar month. 123
732	732	However, no trustee of a ten -member board shall be paid more 124
733	733	than one attendance fee if such trustee attends more than 125
734	734	one board meeting in a calendar week. Each trustee of a ten - 126
735	735	member board shall be reimbursed for his or her actual 127
736	736	expenditures in the performance of his or her d uties on 128
737	737	behalf of the district. Subject to the provisions of 129
738	738	section 105.454, the trustees of a ten -member board may be 130
739	739	paid reasonable compensation by the district for their 131
740	740	services outside their duties as trustees. The board of 132
741	741	trustees may employ and fix the compensation of such staff 133
742	742	as may be necessary to discharge the business and purposes 134
743	743	of the district, including clerks, attorneys, administrative 135
744	744	assistants, and any other necessary personnel. The board of 136
745	745	trustees may employ and fix t he duties and compensation of 137
746	746	an administrator for the district. The administrator shall 138
747	747	be the chief executive officer of the district subject to 139
748	748	the supervision and direction of the board of trustees and 140
749	749	shall exercise the powers, responsibilities a nd duties 141
750	750	heretofore exercised by the chief engineer prior to 142
751	751	September 28, 1983. The administrator of the district may, 143
752	752	with the approval of the board of trustees, retain 144
753	753	consulting engineers for the district under such terms and 145
754	754	conditions as may be necessary to discharge the business and 146
755	755	purposes of the district. The provisions of this subsection 147
756	756	shall only apply to counties of the first classification 148
757	757	which have a charter form of government and which contain 149
758	758	all or any portion of a city with a population of three 150
759	759	hundred fifty thousand or more inhabitants. 151
760	760	204.610. 1. There shall be five trustees, appointed 1
761	761	or elected as provided for in the circuit court decree or 2 SB 214 25
762	762	amended decree of incorporation for a reorganized common 3
763	763	sewer district, who shall reside within the boundaries of 4
764	764	the district. Each trustee shall be a voter of the district 5
765	765	and shall have resided in said district for twelve months 6
766	766	immediately prior to the trustee's election or appointment. 7
767	767	A trustee shall be at least twenty -five years of age and 8
768	768	shall not be delinquent in the payment of taxes at the time 9
769	769	of the trustee's election or appointment. Regardless of 10
770	770	whether or not the trustees are elected or appointed, in the 11
771	771	event the district extends in to any county bordering the 12
772	772	county in which the greater portion of the district lies, 13
773	773	the presiding commissioner or other chief executive officer 14
774	774	of the adjoining county shall be an additional member of the 15
775	775	board of trustees, or the governing body of s uch bordering 16
776	776	county may appoint a citizen from such county to serve as an 17
777	777	additional member of the board of trustees. Said additional 18
778	778	trustee shall meet the qualifications set forth in this 19
779	779	section for a trustee. 20
780	780	2. [The trustees shall receive no compensation for 21
781	781	their services but may be compensated for reasonable 22
782	782	expenses normally incurred in the performance of their 23
783	783	duties.] Each trustee of the board may receive an attendance 24
784	784	fee not to exceed one hundred dollars for attending each 25
785	785	regularly called board meeting, or special meeting, but 26
786	786	shall not be paid for attending more than two meetings in 27
787	787	any calendar month. However, no trustee shall be paid more 28
788	788	than one attendance fee if such trustee attends more than 29
789	789	one board meeting in a ca lendar week. Each trustee of the 30
790	790	board shall be reimbursed for his or her actual expenditures 31
791	791	in the performance of his or her duties on behalf of the 32
792	792	district. Subject to the provisions of section 105.454, the 33
793	793	trustees may be paid reasonable compens ation by the district 34 SB 214 26
794	794	for their services outside their duties as trustees. The 35
795	795	board of trustees may employ and fix the compensation of 36
796	796	such staff as may be necessary to discharge the business and 37
797	797	purposes of the district, including clerks, attorneys, 38
798	798	administrative assistants, and any other necessary 39
799	799	personnel. The board of trustees may employ and fix the 40
800	800	duties and compensation of an administrator for the 41
801	801	district. The administrator shall be the chief executive 42
802	802	officer of the district subject to the supervision and 43
803	803	direction of the board of trustees. The administrator of 44
804	804	the district may, with the approval of the board of 45
805	805	trustees, retain consulting engineers for the district under 46
806	806	such terms and conditions as may be necessary to discharge 47
807	807	the business and purposes of the district. 48
808	808	3. Except as provided in subsection 1 of this section, 49
809	809	the term of office of a trustee shall be five years. The 50
810	810	remaining trustees shall appoint a person qualified under 51
811	811	this section to fill any vacanc y on the board. The initial 52
812	812	trustees appointed by the circuit court shall serve until 53
813	813	the first Tuesday after the first Monday in June or until 54
814	814	the first Tuesday after the first Monday in April, depending 55
815	815	upon the resolution of the trustees. In the event that the 56
816	816	trustees are elected, said elections shall be conducted by 57
817	817	the appropriate election authority under chapter 115. 58
818	818	Otherwise, trustees shall be appointed by the county 59
819	819	commission in accordance with the qualifications set forth 60
820	820	in subsection 1 of this section. 61
821	821	4. Notwithstanding any other provision of law, if 62
822	822	there is only one candidate for the post of trustee, then no 63
823	823	election shall be held, and the candidate shall assume the 64
824	824	responsibilities of office at the same time and in the same 65
825	825	manner as if elected. If there is no candidate for the post 66 SB 214 27
826	826	of trustee, then no election shall be held for that post and 67
827	827	it shall be considered vacant, to be filled under the 68
828	828	provisions of subsection 3 of this section. 69
829	829	393.135. 1. Except as provided in subsection 2 of 1
830	830	this section, any charge made or demanded by an electrical 2
831	831	corporation for service, or in connection therewith, which 3
832	832	is based on the costs of construction in progress upon any 4
833	833	existing or new facility of the electrical corporation, or 5
834	834	any other cost associated with owning, operating, 6
835	835	maintaining, or financing any property before it is fully 7
836	836	operational and used for service, is unjust and 8
837	837	unreasonable, and is prohibited. 9
838	838	2. (1) An electrical corpora tion shall be permitted, 10
839	839	subject to the limitations provided for in this subsection, 11
840	840	to include any amounts recorded to construction work in 12
841	841	progress for any new natural gas generating unit in the 13
842	842	corporation's ratemaking rate base. The inclusion of 14
843	843	construction work in progress allowed under this subsection 15
844	844	shall be in lieu of any otherwise applicable allowance for 16
845	845	funds used during construction that would have accrued from 17
846	846	and after the effective date of new base rates that reflect 18
847	847	inclusion of the construction work in progress in rate 19
848	848	base. The commission shall determine, in a proceeding under 20
849	849	section 393.170, the amount of construction work in progress 21
850	850	that may be included in rate base. The amount shall be 22
851	851	limited by: 23
852	852	(a) The estimated cost of such project; and 24
853	853	(b) Project expenditures made within the estimated 25
854	854	construction period for such project. 26
855	855	Base rate recoveries arising from inclusion of construction 27
856	856	work in progress in base rates are subject to refund, 28 SB 214 28
857	857	together with interest on the refunded amount at the same 29
858	858	rate as the rate of interest for delinquent taxes determined 30
859	859	by the director of revenue in accordance with section 31
860	860	32.065, if and to the extent the commission determines, in a 32
861	861	subsequent complaint or general rate proceeding, that 33
862	862	construction costs giving rise to the construction work in 34
863	863	progress included in rate base were imprudently incurred. 35
864	864	Return deferred under subdivision (2) of subsection 3 of 36
865	865	section 393.1400 for plant that has been included in ba se 37
866	866	rates as construction work in progress shall offset the 38
867	867	amounts deferred under section 393.1400. 39
868	868	(2) Provisions of this subsection shall expire on 40
869	869	December 31, 2035, unless the commission determines, after a 41
870	870	hearing conducted in 2035 upon a su bmission from an 42
871	871	electrical corporation of an application requesting an 43
872	872	extension, that good cause exists to extend the provisions 44
873	873	of this subsection through December 31, 2045. The secretary 45
874	874	of the commission shall notify the revisor of statutes when 46
875	875	the conditions set forth for the extension of this 47
876	876	subsection have been met. 48
877	877	393.150. 1. Whenever there shall be filed with the 1
878	878	commission by any gas corporation, electrical corporation, 2
879	879	water corporation or sewer corporation any s chedule stating 3
880	880	a new rate or charge, or any new form of contract or 4
881	881	agreement, or any new rule, regulation or practice relating 5
882	882	to any rate, charge or service or to any general privilege 6
883	883	or facility, the commission shall have, and it is hereby 7
884	884	given, authority, either upon complaint or upon its own 8
885	885	initiative without complaint, at once, and if it so orders 9
886	886	without answer or other formal pleading by the interested 10
887	887	gas corporation, electrical corporation, water corporation 11
888	888	or sewer corporation, but upon reasonable notice, to enter 12 SB 214 29
889	889	upon a hearing concerning the propriety of such rate, 13
890	890	charge, form of contract or agreement, rule, regulation or 14
891	891	practice, and pending such hearing and the decision thereon, 15
892	892	the commission upon filing with such schedule , and 16
893	893	delivering to the gas corporation, electrical corporation, 17
894	894	water corporation or sewer corporation affected thereby, a 18
895	895	statement in writing of its reasons for such suspension, may 19
896	896	suspend the operation of such schedule and defer the use of 20
897	897	such rate, charge, form of contract or agreement, rule, 21
898	898	regulation or practice, but not for a longer period than one 22
899	899	hundred and twenty days beyond the time when such rate, 23
900	900	charge, form of contract or agreement, rule, regulation or 24
901	901	practice would otherwise g o into effect; and after full 25
902	902	hearing, whether completed before or after the rate, charge, 26
903	903	form of contract or agreement, rule, regulation or practice 27
904	904	goes into effect, the commission may make such order in 28
905	905	reference to such rate, charge, form of contr act or 29
906	906	agreement, rule, regulation or practice as would be proper 30
907	907	in a proceeding initiated after the rate, charge, form of 31
908	908	contract or agreement, rule, regulation or practice had 32
909	909	become effective. 33
910	910	2. If any such hearing cannot be concluded withi n the 34
911	911	period of suspension, as above stated, the commission may, 35
912	912	in its discretion, extend the time of suspension for a 36
913	913	further period not exceeding six months , the last day of 37
914	914	which period shall be considered the operation of law date . 38
915	915	At any hearing involving a rate sought to be increased, the 39
916	916	burden of proof to show that the increased rate or proposed 40
917	917	increased rate is just and reasonable shall be upon the gas 41
918	918	corporation, electrical corporation, water corporation or 42
919	919	sewer corporation, and the commission shall give to the 43
920	920	hearing and decision of such questions preference over all 44 SB 214 30
921	921	other questions pending before it and decide the same as 45
922	922	speedily as possible. 46
923	923	3. (1) Beginning July 1, 2026, the test year for 47
924	924	proceedings under this sectio n shall, if requested by a gas 48
925	925	corporation, water corporation, or sewer corporation, be a 49
926	926	future year consisting of the first twelve full calendar 50
927	927	months after the operation of law date determined as 51
928	928	provided in subsections 1 and 2 of this section for 52
929	929	schedules stating new base rates filed by a gas corporation, 53
930	930	water corporation, or sewer corporation under this section, 54
931	931	unless the commission makes a determination that using a 55
932	932	future test year under this section is detrimental to the 56
933	933	public interest. For ratemaking purposes, the projected 57
934	934	total rate base at the end of the future test year as 58
935	935	authorized by the commission shall be used to establish new 59
936	936	base rates. Unless otherwise ordered by the commission, new 60
937	937	base rates shall not go into effect before the first day of 61
938	938	the future test year. 62
939	939	(2) With respect to gas corporations, water 63
940	940	corporations, or sewer corporations that elect to utilize a 64
941	941	future test year and notwithstanding section 393.270 to the 65
942	942	contrary, within forty -five days of the end of the future 66
943	943	test year, such gas corporation, water corporation, or sewer 67
944	944	corporation shall update its base rates that were approved 68
945	945	by the commission in its report and order issued under 69
946	946	subsections 1 and 2 of this section to reflect the tot al 70
947	947	rate base, annualized depreciation expense, income tax 71
948	948	expense, payroll expense, employee benefits (other than 72
949	949	pensions and other post -retirement benefits) and rate case 73
950	950	expense at the end of the future test year. The total 74
951	951	ending rate base and ex pense items reflected in this update 75
952	952	shall not be greater than the total ending rate base and 76 SB 214 31
953	953	expense items approved by the commission in its report and 77
954	954	order establishing base rates. The commission and parties 78
955	955	to the case shall have sixty days to rev iew the accuracy of 79
956	956	the updated information provided by a gas corporation, water 80
957	957	corporation, or sewer corporation. The commission shall 81
958	958	order the corporation to file new tariff sheets that reflect 82
959	959	the update, unless any party who was a party to the r ate 83
960	960	case files a request for a hearing at which point the 84
961	961	commission shall suspend the filed tariffs and order a 85
962	962	procedural schedule. 86
963	963	4. A gas corporation, water corporation, or sewer 87
964	964	corporation that requests a test year under subsection 3 of 88
965	965	this section shall not recover the costs of any plant 89
966	966	investments made during the test year period under any of 90
967	967	the mechanisms provided for in sections 393.1000, 393.1003, 91
968	968	393.1006, 393.1009, 393.1012, 393.1015, 393.1500, 393.1503, 92
969	969	393.1506, or 393.1509 . 93
970	970	5. For a gas corporation, water corporation, or sewer 94
971	971	corporation that elected to use a future test year, a 95
972	972	reconciliation of the rate base at the end of the future 96
973	973	test year shall be provided to the commission within forty - 97
974	974	five days of the end of the future test year. If the actual 98
975	975	rate base is less than the rate base used to set base rates 99
976	976	in the prior general rate proceeding under subsections 1 and 100
977	977	2 of this section, and notwithstanding section 393.270 to 101
978	978	the contrary, the portion of the annual revenue requirement 102
979	979	comprising the rate base difference shall be returned to 103
980	980	customers. The revenue requirement shall be calculated 104
981	981	using rate base, depreciation expense, income tax expense, 105
982	982	and the pre-tax rate of return from the prior genera l rate 106
983	983	proceeding under subsections 1 and 2 of this section. The 107
984	984	difference in revenue requirement shall be placed into a 108 SB 214 32
985	985	regulatory liability to be returned to customers in the next 109
986	986	general rate proceeding with such regulatory liability to 110
987	987	accrue carrying costs at the utility's weighted average cost 111
988	988	of capital. 112
989	989	6. The commission may take into account any change in 113
990	990	business risk to the corporation resulting from 114
991	991	implementation of the adjustment mechanism in setting the 115
992	992	corporation's allowed return in any rate proceeding, in 116
993	993	addition to any other changes in business risk experienced 117
994	994	by the corporation. 118
995	995	7. For a gas corporation, water corporation, or sewer 119
996	996	corporation that elected to use a future test year, a 120
997	997	reconciliation of payroll expense, employee benefits except 121
998	998	for pensions and other post -retirement benefits, and rate 122
999	999	case expense at the end of the future test year shall be 123
1000	1000	provided to the commission within forty -five days of the end 124
1001	1001	of the future test year. If the actual amounts for these 125
1002	1002	expenses are less than the amounts used to calculate the 126
1003	1003	revenue requirement in the prior general rate proceeding 127
1004	1004	under subsections 1 and 2 of this section, and 128
1005	1005	notwithstanding section 393.270 to the contrary, the 129
1006	1006	differences shall be returned to customers. The difference 130
1007	1007	in revenue requirement shall be placed into a regulatory 131
1008	1008	liability to be returned to customers in the next general 132
1009	1009	rate case with such regulatory liability to accrue carrying 133
1010	1010	costs at the utility's weighted avera ge cost of capital. 134
1011	1011	8. The commission may promulgate rules to implement 135
1012	1012	the provisions of this section. Any rule or portion of a 136
1013	1013	rule, as that term is defined in section 536.010, that is 137
1014	1014	created under the authority delegated in this section shall 138
1015	1015	become effective only if it complies with and is subject to 139
1016	1016	all of the provisions of chapter 536 and, if applicable, 140 SB 214 33
1017	1017	section 536.028. This section and chapter 536 are 141
1018	1018	nonseverable and if any of the powers vested with the 142
1019	1019	general assembly pursuant to chapter 536 to review, to delay 143
1020	1020	the effective date, or to disapprove and annul a rule are 144
1021	1021	subsequently held unconstitutional, then the grant of 145
1022	1022	rulemaking authority and any rule proposed or adopted after 146
1023	1023	August 28, 2025, shall be invalid and void. 147
1024	1024	9. For purposes of this section, the following terms 148
1025	1025	shall mean: 149
1026	1026	(1) "Base rates", rates or charges for public utility 150
1027	1027	service other than rates or charges under any rate 151
1028	1028	adjustment mechanism including, but not limited to, those 152
1029	1029	approved under the provisions of sections 386.266, 393.1000, 153
1030	1030	393.1009, 393.1030, 393.1075, and 393.1500; 154
1031	1031	(2) "Revenue requirement", the amount of retail 155
1032	1032	revenues from base rates charged to retail customers for 156
1033	1033	public utility service needed for a public utility t o 157
1034	1034	recover its cost to provide utility service including 158
1035	1035	reasonable and necessary expenses, prudent investments, and 159
1036	1036	the cost of capital. 160
1037	1037	393.320. 1. As used in this section, the following 1
1038	1038	terms mean: 2
1039	1039	(1) "Large water public u tility", a public utility : 3
1040	1040	(a) That regularly provides water service [or sewer 4
1041	1041	service] to more than eight thousand customer connections , 5
1042	1042	regularly provides sewer service to more than eight thousand 6
1043	1043	customer connections, or regularly provides a c ombination of 7
1044	1044	either to more than eight thousand customer connections; and 8
1045	1045	(b) That provides safe and adequate service but shall 9
1046	1046	not include a sewer district established under Section 10
1047	1047	30(a), Article VI of the Missouri Constitution, sewer 11
1048	1048	districts established under the provisions of chapter 204, 12 SB 214 34
1049	1049	249, or 250, public water supply districts established under 13
1050	1050	the provisions of chapter 247, or municipalities that own 14
1051	1051	water or sewer systems; 15
1052	1052	(2) "Small water utility", a public utility that 16
1053	1053	regularly provides water service or sewer service to eight 17
1054	1054	thousand or fewer customer connections; a water district 18
1055	1055	established under the provisions of chapter 247 that 19
1056	1056	regularly provides water or sewer service to eight thousand 20
1057	1057	or fewer customer connect ions; a sewer district established 21
1058	1058	under the provisions of chapter 204, 249, or 250 that 22
1059	1059	regularly provides sewer service to eight thousand or fewer 23
1060	1060	customer connections; or a water system or sewer system 24
1061	1061	owned by a municipality that regularly provides water 25
1062	1062	service or sewer service to eight thousand or fewer customer 26
1063	1063	connections; and all other entities that regularly provide 27
1064	1064	water service or sewer service to eight thousand or fewer 28
1065	1065	customer connections. 29
1066	1066	2. The procedures contained in this sec tion may be 30
1067	1067	chosen by a large water public utility, and if so chosen 31
1068	1068	shall be used by the public service commission to establish 32
1069	1069	the ratemaking rate base of a small water utility during an 33
1070	1070	acquisition, provided that the public service commission 34
1071	1071	independently concludes that a certificate of convenience 35
1072	1072	and necessity should be granted pursuant to section 393.170, 36
1073	1073	unless the public service commission finds that the 37
1074	1074	application of this section results in rates that are unjust 38
1075	1075	and unreasonable. 39
1076	1076	3. (1) An appraisal shall be performed by three 40
1077	1077	appraisers. One appraiser shall be appointed by the small 41
1078	1078	water utility, one appraiser shall be appointed by the large 42
1079	1079	water public utility, and the third appraiser shall be 43
1080	1080	appointed by the two appraise rs so appointed. Each of the 44 SB 214 35
1081	1081	appraisers shall be a disinterested person who is a 45
1082	1082	certified general appraiser under chapter 339. 46
1083	1083	(2) The appraisers shall: 47
1084	1084	(a) Jointly prepare an appraisal of the fair market 48
1085	1085	value of the water system and/or s ewer system. The 49
1086	1086	determination of fair market value shall be in accordance 50
1087	1087	with Missouri law and with the Uniform Standards of 51
1088	1088	Professional Appraisal Practice; and 52
1089	1089	(b) Return their appraisal, in writing, to the small 53
1090	1090	water utility and large wate r public utility in a reasonable 54
1091	1091	and timely manner. 55
1092	1092	(3) If all three appraisers cannot agree as to the 56
1093	1093	appraised value, the appraisal, when signed by two of the 57
1094	1094	appraisers, constitutes a good and valid appraisal. 58
1095	1095	4. Nothing in this section s hall prohibit a party from 59
1096	1096	declining to proceed with an acquisition or be deemed as 60
1097	1097	establishing the final purchase price of an acquisition. 61
1098	1098	5. (1) The lesser of the purchase price or the 62
1099	1099	appraised value, together with the reasonable and prudent 63
1100	1100	transaction, closing, and transition costs incurred by the 64
1101	1101	large water public utility, shall constitute the ratemaking 65
1102	1102	rate base for the small water utility as acquired by the 66
1103	1103	acquiring large water public utility; provided, however, 67
1104	1104	that if the small water utility is a public utility subject 68
1105	1105	to chapter 386 and the small water utility completed a rate 69
1106	1106	case prior to the acquisition, the public service commission 70
1107	1107	may select as the ratemaking rate base for the small water 71
1108	1108	utility as acquired by the acq uiring large water public 72
1109	1109	utility a ratemaking rate base in between: 73
1110	1110	(a) The lesser of the purchase price or the appraised 74
1111	1111	value, together with the reasonable and prudent transaction, 75
1112	1112	closing, and transition costs incurred by the large water 76 SB 214 36
1113	1113	public utility unless such transaction, closing, and 77
1114	1114	transition costs are elsewhere recoverable in rates; and 78
1115	1115	(b) The ratemaking rate base of the small water 79
1116	1116	utility as ordered by the public service commission in the 80
1117	1117	small water utility's last previou s rate case as adjusted by 81
1118	1118	improvements and depreciation reserve since the previous 82
1119	1119	rate case together with the transaction, closing, and 83
1120	1120	transition costs incurred by the large water public utility 84
1121	1121	unless such transaction, closing, and transition costs are 85
1122	1122	elsewhere recoverable in rates. If the small water utility 86
1123	1123	and large water public utility proceed with the sale, any 87
1124	1124	past-due fees due to the state from the small water utility 88
1125	1125	or its customers under chapter 640 or 644 shall be resolved 89
1126	1126	prior to the transfer of ownership or the liability for such 90
1127	1127	past-due fees becomes the responsibility of the large water 91
1128	1128	public utility. Such fees shall not be included in the 92
1129	1129	large water public utility's rate base. 93
1130	1130	(2) The public service commission shal l issue its 94
1131	1131	decision establishing the ratemaking rate base of the small 95
1132	1132	water utility in its order approving the acquisition. For 96
1133	1133	any acquisition with an appraised value of five million 97
1134	1134	dollars or less, such decision shall be issued within six 98
1135	1135	months from the submission of the application by the large 99
1136	1136	public water utility to acquire the small water utility. 100
1137	1137	(3) Prior to the expiration of the six -month period, 101
1138	1138	the public service commission staff or the office of public 102
1139	1139	counsel may request, upo n a showing of good cause, from the 103
1140	1140	public service commission an extension for approval of the 104
1141	1141	application for an additional thirty days. 105
1142	1142	6. Upon the date of the acquisition of a small water 106
1143	1143	utility by a large water public utility, whether or not the 107
1144	1144	procedures for establishing ratemaking rate base provided by 108 SB 214 37
1145	1145	this section have been utilized, the small water utility 109
1146	1146	shall, for ratemaking purposes, become part of an existing 110
1147	1147	service area, as defined by the public service commission, 111
1148	1148	of the acquiring large water public utility that is either 112
1149	1149	contiguous to the small water utility, the closest 113
1150	1150	geographically to the small water utility, or best suited 114
1151	1151	due to operational or other factors. This consolidation 115
1152	1152	shall be approved by the public servic e commission in its 116
1153	1153	order approving the acquisition. 117
1154	1154	7. Any new permit issued pursuant to chapters 640 and 118
1155	1155	644, when a small water utility is acquired by a large water 119
1156	1156	public utility, shall include a plan to resolve all 120
1157	1157	outstanding permit complia nce issues. After the transfer of 121
1158	1158	ownership, the acquiring large public water utility shall 122
1159	1159	continue providing service to all customers that were served 123
1160	1160	by the small water utility at the time of sale. 124
1161	1161	8. This section is intended for the specific and 125
1162	1162	unique purpose of determining the ratemaking rate base of 126
1163	1163	small water utilities and shall be exclusively applied to 127
1164	1164	large water public utilities in the acquisition of a small 128
1165	1165	water utility. A large water public utility's choice to 129
1166	1166	comply with the provisions of this section shall not 130
1167	1167	automatically ensure that the transaction is in the public 131
1168	1168	interest. The public service commission shall independently 132
1169	1169	determine whether the acquisition is in the public interest, 133
1170	1170	regardless of whether the matter has been put to a vote of 134
1171	1171	the small water utility's ratepayers. This section is not 135
1172	1172	intended to apply beyond its specific purpose and shall not 136
1173	1173	be construed in any manner to apply to electric 137
1174	1174	corporations, natural gas corporations, or any other utilit y 138
1175	1175	regulated by the public service commission. 139 SB 214 38
1176	1176	393.1030. 1. The commission shall, in consultation 1
1177	1177	with the department, prescribe by rule a portfolio 2
1178	1178	requirement for all electric utilities to generate or 3
1179	1179	purchase electricity generate d from renewable energy 4
1180	1180	resources. Such portfolio requirement shall provide that 5
1181	1181	electricity from renewable energy resources shall constitute 6
1182	1182	the following portions of each electric utility's sales: 7
1183	1183	(1) No less than two percent for calendar years 2011 8
1184	1184	through 2013; 9
1185	1185	(2) No less than five percent for calendar years 2014 10
1186	1186	through 2017; 11
1187	1187	(3) No less than ten percent for calendar years 2018 12
1188	1188	through 2020; and 13
1189	1189	(4) No less than fifteen percent in each calendar year 14
1190	1190	beginning in 2021. 15
1191	1191	At least two percent of each portfolio requirement shall be 16
1192	1192	derived from solar energy. The portfolio requirements shall 17
1193	1193	apply to all power sold to Missouri consumers whether such 18
1194	1194	power is self-generated or purchased from another source in 19
1195	1195	or outside of this state. A utility may comply with the 20
1196	1196	standard in whole or in part by purchasing RECs. Each 21
1197	1197	kilowatt-hour of eligible energy generated in Missouri shall 22
1198	1198	count as 1.25 kilowatt -hours for purposes of compliance. 23
1199	1199	2. (1) This subsection appl ies to electric utilities 24
1200	1200	with more than two hundred fifty thousand but less than one 25
1201	1201	million retail customers in Missouri as of the end of 26
1202	1202	calendar year 2022. 27
1203	1203	(2) Energy meeting the criteria of the renewable 28
1204	1204	energy portfolio requirements set for th in subsection 1 of 29
1205	1205	this section that is generated from renewable energy 30 SB 214 39
1206	1206	resources and contracted for by an accelerated renewable 31
1207	1207	buyer shall: 32
1208	1208	(a) Have all associated renewable energy certificates 33
1209	1209	retired by the accelerated renewable buyer, or on their 34
1210	1210	behalf, and the certificates shall not be used to meet the 35
1211	1211	electric utility's portfolio requirements pursuant to 36
1212	1212	subsection 1 of this section; 37
1213	1213	(b) Be excluded from the total electric utility's 38
1214	1214	sales used to determine the portfolio requir ements pursuant 39
1215	1215	to subsection 1 of this section; and 40
1216	1216	(c) Be used to offset all or a portion of its electric 41
1217	1217	load for purposes of determining compliance with the 42
1218	1218	portfolio requirements pursuant to subsection 1 of this 43
1219	1219	section. 44
1220	1220	(3) The accelerated renewable buyer shall be exempt 45
1221	1221	from any renewable energy standard compliance costs as may 46
1222	1222	be established by the utility and approved by the 47
1223	1223	commission, based on the amount of renewable energy 48
1224	1224	certificates retired pursuant to this subsection in 49
1225	1225	proportion to the accelerated renewable buyer's total 50
1226	1226	electric energy consumption, on an annual basis. 51
1227	1227	(4) An "accelerated renewable buyer" means a customer 52
1228	1228	of an electric utility, with an aggregate load over eighty 53
1229	1229	average megawatts, that enters into a contract or contracts 54
1230	1230	to obtain: 55
1231	1231	(a) Renewable energy certificates from renewable 56
1232	1232	energy resources as defined in section 393.1025; or 57
1233	1233	(b) Energy and renewable energy certificates from 58
1234	1234	solar or wind generation resources located within the 59
1235	1235	Southwest Power Pool or Midcontinent Independent System 60
1236	1236	Operator regions and initially placed in commercial 61
1237	1237	operation after January 1, 2020, including any contract with 62 SB 214 40
1238	1238	the electric utility for such generation resources that does 63
1239	1239	not allocate to or recover from any other customer of the 64
1240	1240	utility the cost of such resources. 65
1241	1241	(5) Each electric utility shall certify, and verify as 66
1242	1242	necessary, to the commission that the accelerated renewable 67
1243	1243	buyer has satisfied the exemption requirements of this 68
1244	1244	subsection for each year, or an accelerated renewable buyer 69
1245	1245	may choose to certify satisfaction of this exemption by 70
1246	1246	reporting to the commission individually. The commission 71
1247	1247	may promulgate such rules and regulations as may be 72
1248	1248	necessary to implement th e provisions of this subsection. 73
1249	1249	Nothing in this section shall be construed as imposing or 74
1250	1250	authorizing the imposition of any reporting, regulatory, or 75
1251	1251	financial burden on an accelerated renewable buyer. 76
1252	1252	3. The commission, in consultation with the department 77
1253	1253	and within one year of November 4, 2008, shall select a 78
1254	1254	program for tracking and verifying the trading of renewable 79
1255	1255	energy credits. An unused credit may exist for up to three 80
1256	1256	years from the date of its creation. A credit may be used 81
1257	1257	only once to comply with sections 393.1020 to 393.1030 and 82
1258	1258	may not also be used to satisfy any similar nonfederal 83
1259	1259	requirement. An electric utility may not use a credit 84
1260	1260	derived from a green pricing program. Certificates from net - 85
1261	1261	metered sources shall init ially be owned by the customer - 86
1262	1262	generator. The commission, except where the department is 87
1263	1263	specified, shall make whatever rules are necessary to 88
1264	1264	enforce the renewable energy standard. Such rules shall 89
1265	1265	include: 90
1266	1266	(1) A maximum average retail rate in crease of one 91
1267	1267	percent determined by estimating and comparing the electric 92
1268	1268	utility's cost of compliance with least -cost renewable 93
1269	1269	generation and the cost of continuing to generate or 94 SB 214 41
1270	1270	purchase electricity from entirely nonrenewable sources, 95
1271	1271	taking into proper account future environmental regulatory 96
1272	1272	risk including the risk of greenhouse gas regulation. 97
1273	1273	Notwithstanding the foregoing, until June 30, 2020, if the 98
1274	1274	maximum average retail rate increase would be less than or 99
1275	1275	equal to one percent if an elect ric utility's investment in 100
1276	1276	solar-related projects initiated, owned or operated by the 101
1277	1277	electric utility is ignored for purposes of calculating the 102
1278	1278	increase, then additional solar rebates shall be paid and 103
1279	1279	included in rates in an amount up to the amount that would 104
1280	1280	produce a retail rate increase equal to the difference 105
1281	1281	between a one percent retail rate increase and the retail 106
1282	1282	rate increase calculated when ignoring an electric utility's 107
1283	1283	investment in solar-related projects initiated, owned, or 108
1284	1284	operated by the electric utility. Notwithstanding any 109
1285	1285	provision to the contrary in this section, even if the 110
1286	1286	payment of additional solar rebates will produce a maximum 111
1287	1287	average retail rate increase of greater than one percent 112
1288	1288	when an electric utility's invest ment in solar-related 113
1289	1289	projects initiated, owned or operated by the electric 114
1290	1290	utility are included in the calculation, the additional 115
1291	1291	solar rebate costs shall be included in the prudently 116
1292	1292	incurred costs to be recovered as contemplated by 117
1293	1293	subdivision (4) of this subsection; 118
1294	1294	(2) Penalties of at least twice the average market 119
1295	1295	value of renewable energy credits for the compliance period 120
1296	1296	for failure to meet the targets of subsection 1 of this 121
1297	1297	section. An electric utility will be excused if it proves 122
1298	1298	to the commission that failure was due to events beyond its 123
1299	1299	reasonable control that could not have been reasonably 124
1300	1300	mitigated, or that the maximum average retail rate increase 125
1301	1301	has been reached. Penalties shall not be recovered from 126 SB 214 42
1302	1302	customers. Amounts forfeited under this section shall be 127
1303	1303	remitted to the department to purchase renewable energy 128
1304	1304	credits needed for compliance. Any excess forfeited 129
1305	1305	revenues shall be used by the division of energy solely for 130
1306	1306	renewable energy and energy efficiency proje cts; 131
1307	1307	(3) Provisions for an annual report to be filed by 132
1308	1308	each electric utility in a format sufficient to document its 133
1309	1309	progress in meeting the targets; 134
1310	1310	(4) Provision for recovery outside the context of a 135
1311	1311	regular rate case of prudently incurred costs and the pass- 136
1312	1312	through of benefits to customers of any savings achieved by 137
1313	1313	an electrical corporation in meeting the requirements of 138
1314	1314	this section. 139
1315	1315	[3.] 4. As provided for in this section, except for 140
1316	1316	those electrical corporations that qualify for an exemption 141
1317	1317	under section 393.1050, each electric utility shall make 142
1318	1318	available to its retail customers a solar rebate for new or 143
1319	1319	expanded solar electric systems sited on customers' 144
1320	1320	premises, up to a maximum of twenty -five kilowatts per 145
1321	1321	system, measured in direct current that were confirmed by 146
1322	1322	the electric utility to have become operational in 147
1323	1323	compliance with the provisions of section 386.890. The 148
1324	1324	solar rebates shall be two dollars per watt for systems 149
1325	1325	becoming operational on or before June 30 , 2014; one dollar 150
1326	1326	and fifty cents per watt for systems becoming operational 151
1327	1327	between July 1, 2014, and June 30, 2015; one dollar per watt 152
1328	1328	for systems becoming operational between July 1, 2015, and 153
1329	1329	June 30, 2016; fifty cents per watt for systems becomin g 154
1330	1330	operational between July 1, 2016, and June 30, 2017; fifty 155
1331	1331	cents per watt for systems becoming operational between July 156
1332	1332	1, 2017, and June 30, 2019; twenty -five cents per watt for 157
1333	1333	systems becoming operational between July 1, 2019, and June 158 SB 214 43
1334	1334	30, 2020; and zero cents per watt for systems becoming 159
1335	1335	operational after June 30, 2020. An electric utility may, 160
1336	1336	through its tariffs, require applications for rebates to be 161
1337	1337	submitted up to one hundred eighty -two days prior to the 162
1338	1338	June thirtieth operational date . Nothing in this section 163
1339	1339	shall prevent an electrical corporation from offering 164
1340	1340	rebates after July 1, 2020, through an approved tariff. If 165
1341	1341	the electric utility determines the maximum average retail 166
1342	1342	rate increase provided for in subdivision (1) of sub section 167
1343	1343	[2] 3 of this section will be reached in any calendar year, 168
1344	1344	the electric utility shall be entitled to cease paying 169
1345	1345	rebates to the extent necessary to avoid exceeding the 170
1346	1346	maximum average retail rate increase if the electrical 171
1347	1347	corporation files with the commission to suspend its rebate 172
1348	1348	tariff for the remainder of that calendar year at least 173
1349	1349	sixty days prior to the change taking effect. The filing 174
1350	1350	with the commission to suspend the electrical corporation's 175
1351	1351	rebate tariff shall include the calc ulation reflecting that 176
1352	1352	the maximum average retail rate increase will be reached and 177
1353	1353	supporting documentation reflecting that the maximum average 178
1354	1354	retail rate increase will be reached. The commission shall 179
1355	1355	rule on the suspension filing within sixty day s of the date 180
1356	1356	it is filed. If the commission determines that the maximum 181
1357	1357	average retail rate increase will be reached, the commission 182
1358	1358	shall approve the tariff suspension. The electric utility 183
1359	1359	shall continue to process and pay applicable solar rebates 184
1360	1360	until a final commission ruling; however, if the continued 185
1361	1361	payment causes the electric utility to pay rebates that 186
1362	1362	cause it to exceed the maximum average retail rate increase, 187
1363	1363	the expenditures shall be considered prudently incurred 188
1364	1364	costs as contemplated by subdivision (4) of subsection [2] 3 189
1365	1365	of this section and shall be recoverable as such by the 190 SB 214 44
1366	1366	electric utility. As a condition of receiving a rebate, 191
1367	1367	customers shall transfer to the electric utility all right, 192
1368	1368	title, and interest in and to the re newable energy credits 193
1369	1369	associated with the new or expanded solar electric system 194
1370	1370	that qualified the customer for the solar rebate for a 195
1371	1371	period of ten years from the date the electric utility 196
1372	1372	confirmed that the solar electric system was installed and 197
1373	1373	operational. 198
1374	1374	[4.] 5. The department shall, in consultation with the 199
1375	1375	commission, establish by rule a certification process for 200
1376	1376	electricity generated from renewable resources and used to 201
1377	1377	fulfill the requirements of subsection 1 of this section. 202
1378	1378	Certification criteria for renewable energy generation shall 203
1379	1379	be determined by factors that include fuel type, technology, 204
1380	1380	and the environmental impacts of the generating facility. 205
1381	1381	Renewable energy facilities shall not cause undue adverse 206
1382	1382	air, water, or land use impacts, including impacts 207
1383	1383	associated with the gathering of generation feedstocks. If 208
1384	1384	any amount of fossil fuel is used with renewable energy 209
1385	1385	resources, only the portion of electrical output 210
1386	1386	attributable to renewable energy resources shall be used to 211
1387	1387	fulfill the portfolio requirements. 212
1388	1388	[5.] 6. In carrying out the provisions of this 213
1389	1389	section, the commission and the department shall include 214
1390	1390	methane generated from the anaerobic digestion of farm 215
1391	1391	animal waste and thermal depolymerization o r pyrolysis for 216
1392	1392	converting waste material to energy as renewable energy 217
1393	1393	resources for purposes of this section. 218
1394	1394	[6.] 7. The commission shall have the authority to 219
1395	1395	promulgate rules for the implementation of this section, but 220
1396	1396	only to the extent suc h rules are consistent with, and do 221
1397	1397	not delay the implementation of, the provisions of this 222 SB 214 45
1398	1398	section. Any rule or portion of a rule, as that term is 223
1399	1399	defined in section 536.010, that is created under the 224
1400	1400	authority delegated in this section shall become effective 225
1401	1401	only if it complies with and is subject to all of the 226
1402	1402	provisions of chapter 536 and, if applicable, section 227
1403	1403	536.028. This section and chapter 536 are nonseverable and 228
1404	1404	if any of the powers vested with the general assembly 229
1405	1405	pursuant to chapter 536 to review, to delay the effective 230
1406	1406	date, or to disapprove and annul a rule are subsequently 231
1407	1407	held unconstitutional, then the grant of rulemaking 232
1408	1408	authority and any rule proposed or adopted after August 28, 233
1409	1409	2013, shall be invalid and void. 234
1410	1410	393.1506. 1. Notwithstanding any provisions of 1
1411	1411	chapter 386 and this chapter to the contrary, a water or 2
1412	1412	sewer corporation that provides water [or sewer] service to 3
1413	1413	more than eight thousand customer connections , sewer service 4
1414	1414	to more than eight thousand customer connections, or a 5
1415	1415	combination of either to more than eight thousand customer 6
1416	1416	connections may file a petition and proposed rate schedules 7
1417	1417	with the commission to establish or change a WSIRA that will 8
1418	1418	provide for the recovery of the ap propriate pretax revenues 9
1419	1419	associated with the eligible infrastructure system projects, 10
1420	1420	less the appropriate pretax revenues associated with any 11
1421	1421	retired utility plant that is being replaced by the eligible 12
1422	1422	infrastructure system projects. The WSIRA shall not produce 13
1423	1423	revenues in excess of fifteen percent of the water or sewer 14
1424	1424	corporation's base revenue requirement approved by the 15
1425	1425	commission in the water or sewer corporation's most recent 16
1426	1426	general rate proceeding; provided, however, that neither 17
1427	1427	WSIRA revenues attributable to replacement of customer -owned 18
1428	1428	lead service lines, nor any reconciliation amounts described 19
1429	1429	in subdivision (2) of subsection 5 of section 393.1509, 20 SB 214 46
1430	1430	shall count toward the program cap. The WSIRA and any 21
1431	1431	future changes thereto sh all be calculated and implemented 22
1432	1432	in accordance with the provisions of sections 393.1503 to 23
1433	1433	393.1509. WSIRA revenues shall be subject to refund based 24
1434	1434	upon a finding and order of the commission, to the extent 25
1435	1435	provided in subsections 5 and 8 of section 3 93.1509. 26
1436	1436	2. The commission shall not approve a WSIRA for a 27
1437	1437	water or sewer corporation that has not had a general rate 28
1438	1438	proceeding decided or dismissed by issuance of a commission 29
1439	1439	order within the past three years of the filing of a 30
1440	1440	petition pursuant to this section unless the water or sewer 31
1441	1441	corporation has filed for or is the subject of a new general 32
1442	1442	rate proceeding. 33
1443	1443	3. In no event shall a water or sewer corporation 34
1444	1444	collect a WSIRA for a period exceeding three years unless 35
1445	1445	the water or sewer corporation has filed for or is the 36
1446	1446	subject of a pending general rate proceeding; provided that 37
1447	1447	the WSIRA may be collected until the effective date of new 38
1448	1448	rate schedules established as a result of the new general 39
1449	1449	rate proceeding or until the subjec t general rate proceeding 40
1450	1450	is otherwise decided or dismissed by issuance of a 41
1451	1451	commission order without new rates being established. 42
1452	1452	4. Except as provided in this subsection, in no event 43
1453	1453	shall a water or sewer corporation collect a WSIRA if also 44
1454	1454	collecting revenues from a commission approved 45
1455	1455	infrastructure system replacement surcharge as provided in 46
1456	1456	sections 393.1000 to 393.1006. In no event shall a customer 47
1457	1457	be charged both an infrastructure system replacement 48
1458	1458	surcharge as provided in sections 393.1000 to 393.1006 and a 49
1459	1459	WSIRA. In the event a water or sewer corporation is 50
1460	1460	collecting infrastructure system replacement surcharge 51
1461	1461	revenues under sections 393.1000 to 393.1006, that was 52 SB 214 47
1462	1462	approved prior to August 28, 2021, when the initial WSIRA is 53
1463	1463	filed, the approved infrastructure system replacement 54
1464	1464	surcharge revenues shall be included in the new WSIRA filing. 55
1465	1465	393.1645. 1. Subject to the limitations provided for 1
1466	1466	in subsection 2 of this section, and upon proper application 2
1467	1467	by an eligible customer prior to public announcement of a 3
1468	1468	growth project, a new or existing account meeting the 4
1469	1469	criteria in this subsection shall qualify for one of the 5
1470	1470	discounts set forth in subdivision (1) or (2) of this 6
1471	1471	subsection: 7
1472	1472	(1) When the customer is a new customer and the new 8
1473	1473	load is reasonably projected to be at least two hundred 9
1474	1474	seventy thousand ccf annually, the discount shall equal up 10
1475	1475	to twenty-five percent subject to the limiting provisions of 11
1476	1476	this section and shall apply for four years; or 12
1477	1477	(2) When the customer is an existing customer and the 13
1478	1478	new load is reasonably projected to be at least one hundred 14
1479	1479	thirty-five thousand ccf annually, the discount shall equal 15
1480	1480	twenty-five percent subject to the limiting provisions of 16
1481	1481	this section and shall apply for four years. 17
1482	1482	To obtain one of the discounts set forth in subdivision (1) 18
1483	1483	or (2) of this subsection, the customer's load shall be 19
1484	1484	incremental, net of any offsetting load reductions due to 20
1485	1485	the termination of other accounts of the customer or an 21
1486	1486	affiliate of the customer within twelve months prior to the 22
1487	1487	commencement of service to the new load, the customer shall 23
1488	1488	receive an economic development incentive from the local, 24
1489	1489	regional, state, or federal government, or from an agen cy or 25
1490	1490	program of any such government, in conjunction with the 26
1491	1491	incremental load, and the customer shall meet the criteria 27
1492	1492	set forth in the gas corporation's economic development 28 SB 214 48
1493	1493	rider tariff sheet, as approved by the commission, that are 29
1494	1494	not inconsistent with the provisions of this subsection. 30
1495	1495	Unless otherwise provided for by the gas corporation's 31
1496	1496	tariff, the applicable discount shall be a percentage 32
1497	1497	applied to all variable base -rate components of the bill. 33
1498	1498	The discount shall be applied to such in cremental load from 34
1499	1499	the date when the meter has been permanently set until the 35
1500	1500	date that such incremental load no longer meets the criteria 36
1501	1501	required to qualify for the discount as determined under the 37
1502	1502	provisions of subsection 2 of this section, or a ma ximum of 38
1503	1503	four years. The gas corporation may include in its tariff 39
1504	1504	additional or alternative terms and conditions to a 40
1505	1505	customer's utilization of the discount, subject to approval 41
1506	1506	of such terms and conditions by the commission. The 42
1507	1507	customer, on forms supplied by the gas corporation, shall 43
1508	1508	apply for the applicable discount provided for by this 44
1509	1509	subsection at least ninety days prior to the date the 45
1510	1510	customer requests that the incremental usage receive one of 46
1511	1511	the discounts provided for by this subsecti on and shall 47
1512	1512	enter into a written agreement with the gas corporation 48
1513	1513	reflecting the discount percentages and other pertinent 49
1514	1514	details prior to which no discount will be available. If 50
1515	1515	the incremental usage is not separately metered, the gas 51
1516	1516	corporation's determination of the incremental usage shall 52
1517	1517	control. The gas corporation shall verify the customer's 53
1518	1518	consumption annually to determine continued qualification 54
1519	1519	for the applicable discount. Notwithstanding the foregoing 55
1520	1520	provisions of this subsectio n, the cents-per-ccf realization 56
1521	1521	resulting from application of any discounted rates as 57
1522	1522	calculated shall be higher than the gas corporation's 58
1523	1523	variable cost to serve such incremental usage and the 59
1524	1524	applicable discounted rate also shall make a positive 60 SB 214 49
1525	1525	contribution to fixed costs associated with service to such 61
1526	1526	incremental usage. If in a subsequent general rate 62
1527	1527	proceeding the commission determines that application of a 63
1528	1528	discounted rate is not adequate to cover the gas 64
1529	1529	corporation's variable cost to ser ve accounts in question 65
1530	1530	and provide a positive contribution to fixed costs, then the 66
1531	1531	commission shall reduce the discount for those accounts 67
1532	1532	prospectively to the extent necessary to do so. 68
1533	1533	2. In each general rate proceeding concluded after 69
1534	1534	August 28, 2025, the difference in revenues generated by 70
1535	1535	applying the discounted rates provided for by this section 71
1536	1536	and the revenues that would have been generated without such 72
1537	1537	discounts shall not be imputed into the gas corporation's 73
1538	1538	revenue requirement, bu t instead such revenue requirement 74
1539	1539	shall be set using the revenues generated by such discounted 75
1540	1540	rates, and the impact of the discounts provided for by this 76
1541	1541	section shall be allocated to all the gas corporation's 77
1542	1542	customer classes, including the classes with customers that 78
1543	1543	qualify for discounts under this section, through the 79
1544	1544	application of a uniform percentage adjustment to the 80
1545	1545	revenue requirement responsibility of all customer classes. 81
1546	1546	To qualify for the discounted rates provided for in this 82
1547	1547	section, customers shall meet the applicable criteria within 83
1548	1548	twenty-four months of initially receiving discounts based on 84
1549	1549	metering data for calendar months thirteen through twenty - 85
1550	1550	four and annually thereafter. If such data indicates that 86
1551	1551	the customer did not meet the applicable criteria for any 87
1552	1552	subsequent twelve-month period, it shall thereafter no 88
1553	1553	longer qualify for a discounted rate. Customer usage 89
1554	1554	existing at the time the customer makes application for 90
1555	1555	discounted rates under this section shall not c onstitute 91
1556	1556	incremental usage. The discounted rates provided for by 92 SB 214 50
1557	1557	this section apply only to variable base -rate components, 93
1558	1558	with charges or credits arising from any rate adjustment 94
1559	1559	mechanism authorized by law to be applied to customers 95
1560	1560	qualifying for discounted rates under this section in the 96
1561	1561	same manner as such rate adjustments would apply in absence 97
1562	1562	of this section. 98
1563	1563	3. For purposes of this section, "gas corporation" 99
1564	1564	shall mean the same as defined in section 386.020. 100
1565	1565	393.1700. 1. For purposes of sections 393.1700 to 1
1566	1566	393.1715, the following terms shall mean: 2
1567	1567	(1) "Ancillary agreement", a bond, insurance policy, 3
1568	1568	letter of credit, reserve account, surety bond, interest 4
1569	1569	rate lock or swap arrangement, hedging arrangeme nt, 5
1570	1570	liquidity or credit support arrangement, or other financial 6
1571	1571	arrangement entered into in connection with securitized 7
1572	1572	utility tariff bonds; 8
1573	1573	(2) "Assignee", a legally recognized entity to which 9
1574	1574	an electrical corporation assigns, sells, or transf ers, 10
1575	1575	other than as security, all or a portion of its interest in 11
1576	1576	or right to securitized utility tariff property. The term 12
1577	1577	includes a corporation, limited liability company, general 13
1578	1578	partnership or limited partnership, public authority, trust, 14
1579	1579	financing entity, or any entity to which an assignee 15
1580	1580	assigns, sells, or transfers, other than as security, its 16
1581	1581	interest in or right to securitized utility tariff property; 17
1582	1582	(3) "Bondholder", a person who holds a securitized 18
1583	1583	utility tariff bond; 19
1584	1584	(4) "Code", the uniform commercial code, chapter 400; 20
1585	1585	(5) "Commission", the Missouri public service 21
1586	1586	commission; 22 SB 214 51
1587	1587	(6) "Electrical corporation", the same as defined in 23
1588	1588	section 386.020, but shall not include an electrical 24
1589	1589	corporation as described in subsection 2 of section 393.110; 25
1590	1590	(7) "Energy transition costs" include all of the 26
1591	1591	following: 27
1592	1592	(a) Pretax costs with respect to a retired or 28
1593	1593	abandoned or to be retired or abandoned electric generating 29
1594	1594	facility that is the subject of a petitio n for a financing 30
1595	1595	order filed under this section where such early retirement 31
1596	1596	or abandonment is deemed reasonable and prudent by the 32
1597	1597	commission through a final order issued by the commission, 33
1598	1598	include, but are not limited to, the undepreciated 34
1599	1599	investment in the retired or abandoned or to be retired or 35
1600	1600	abandoned electric generating facility and any facilities 36
1601	1601	ancillary thereto or used in conjunction therewith, costs of 37
1602	1602	decommissioning and restoring the site of the electric 38
1603	1603	generating facility, other a pplicable capital and operating 39
1604	1604	costs, accrued carrying charges, and deferred expenses, with 40
1605	1605	the foregoing to be reduced by applicable tax benefits of 41
1606	1606	accumulated and excess deferred income taxes, insurance, 42
1607	1607	scrap and salvage proceeds, and may include the cost of 43
1608	1608	retiring any existing indebtedness, fees, costs, and 44
1609	1609	expenses to modify existing debt agreements or for waivers 45
1610	1610	or consents related to existing debt agreements; 46
1611	1611	(b) Pretax costs that an electrical corporation has 47
1612	1612	previously incurred r elated to the retirement or abandonment 48
1613	1613	of such an electric generating facility occurring before 49
1614	1614	August 28, 2021; 50
1615	1615	(8) "Financing costs" includes all of the following: 51
1616	1616	(a) Interest and acquisition, defeasance, or 52
1617	1617	redemption premiums payable o n securitized utility tariff 53
1618	1618	bonds; 54 SB 214 52
1619	1619	(b) Any payment required under an ancillary agreement 55
1620	1620	and any amount required to fund or replenish a reserve 56
1621	1621	account or other accounts established under the terms of any 57
1622	1622	indenture, ancillary agreement, or other financing documents 58
1623	1623	pertaining to securitized utility tariff bonds; 59
1624	1624	(c) Any other cost related to issuing, supporting, 60
1625	1625	repaying, refunding, and servicing securitized utility 61
1626	1626	tariff bonds, including servicing fees, accounting and 62
1627	1627	auditing fees, trustee fees, legal fees, consulting fees, 63
1628	1628	structuring adviser fees, administrative fees, placement and 64
1629	1629	underwriting fees, independent director and manager fees, 65
1630	1630	capitalized interest, rating agency fees, stock exchange 66
1631	1631	listing and compliance fees, secur ity registration fees, 67
1632	1632	filing fees, information technology programming costs, and 68
1633	1633	any other costs necessary to otherwise ensure the timely 69
1634	1634	payment of securitized utility tariff bonds or other amounts 70
1635	1635	or charges payable in connection with the bonds, inc luding 71
1636	1636	costs related to obtaining the financing order; 72
1637	1637	(d) Any taxes and license fees or other fees imposed 73
1638	1638	on the revenues generated from the collection of the 74
1639	1639	securitized utility tariff charge or otherwise resulting 75
1640	1640	from the collection of secur itized utility tariff charges, 76
1641	1641	in any such case whether paid, payable, or accrued; 77
1642	1642	(e) Any state and local taxes, franchise, gross 78
1643	1643	receipts, and other taxes or similar charges, including 79
1644	1644	commission assessment fees, whether paid, payable, or 80
1645	1645	accrued; 81
1646	1646	(f) Any costs associated with performance of the 82
1647	1647	commission's responsibilities under this section in 83
1648	1648	connection with approving, approving subject to conditions, 84
1649	1649	or rejecting a petition for a financing order, and in 85
1650	1650	performing its duties in co nnection with the issuance advice 86 SB 214 53
1651	1651	letter process, including costs to retain counsel, one or 87
1652	1652	more financial advisors, or other consultants as deemed 88
1653	1653	appropriate by the commission and paid pursuant to this 89
1654	1654	section; 90
1655	1655	(9) "Financing order", an order f rom the commission 91
1656	1656	that authorizes the issuance of securitized utility tariff 92
1657	1657	bonds; the imposition, collection, and periodic adjustments 93
1658	1658	of a securitized utility tariff charge; the creation of 94
1659	1659	securitized utility tariff property; and the sale, 95
1660	1660	assignment, or transfer of securitized utility tariff 96
1661	1661	property to an assignee; 97
1662	1662	(10) "Financing party", bondholders and trustees, 98
1663	1663	collateral agents, any party under an ancillary agreement, 99
1664	1664	or any other person acting for the benefit of bondholders; 100
1665	1665	(11) "Financing statement", the same as defined in 101
1666	1666	article 9 of the code; 102
1667	1667	(12) "Pledgee", a financing party to which an 103
1668	1668	electrical corporation or its successors or assignees 104
1669	1669	mortgages, negotiates, pledges, or creates a security 105
1670	1670	interest or lien on all or any portion of its interest in or 106
1671	1671	right to securitized utility tariff property; 107
1672	1672	(13) "Qualified extraordinary costs", costs incurred 108
1673	1673	prudently before, on, or after August 28, 2021, of an 109
1674	1674	extraordinary nature which would cause extreme cust omer rate 110
1675	1675	impacts if reflected in retail customer rates recovered 111
1676	1676	through customary ratemaking, such as but not limited to 112
1677	1677	those related to purchases of fuel or power, inclusive of 113
1678	1678	carrying charges, during anomalous weather events; 114
1679	1679	(14) "Rate base cutoff date", the same as defined in 115
1680	1680	subdivision (4) of subsection 1 of section 393.1400 as such 116
1681	1681	term existed on August 28, 2021; 117 SB 214 54
1682	1682	(15) "Securitized utility tariff bonds", bonds, 118
1683	1683	debentures, notes, certificates of participation, 119
1684	1684	certificates of beneficial interest, certificates of 120
1685	1685	ownership, or other evidences of indebtedness or ownership 121
1686	1686	that are issued by an electrical corporation or an assignee 122
1687	1687	pursuant to a financing order, the proceeds of which are 123
1688	1688	used directly or indirectly to recover, finance, or 124
1689	1689	refinance commission -approved securitized utility tariff 125
1690	1690	costs and financing costs, and that are secured by or 126
1691	1691	payable from securitized utility tariff property. If 127
1692	1692	certificates of participation or ownership are issued, 128
1693	1693	references in this section to principal, interest, or 129
1694	1694	premium shall be construed to refer to comparable amounts 130
1695	1695	under those certificates; 131
1696	1696	(16) "Securitized utility tariff charge", the amounts 132
1697	1697	authorized by the commission to repay, finance, or refinance 133
1698	1698	securitized utility tariff costs and financing costs and 134
1699	1699	that are, except as otherwise provided for in this section, 135
1700	1700	nonbypassable charges imposed on and part of all retail 136
1701	1701	customer bills, collected by an electrical corporation or 137
1702	1702	its successors or assignees, or a collection agent, in full, 138
1703	1703	separate and apart from the electrical corporation's base 139
1704	1704	rates, and paid by all existing or future retail customers 140
1705	1705	receiving electrical service from the electrical corporation 141
1706	1706	or its successors or assignees under commissi on-approved 142
1707	1707	rate schedules, except for customers receiving electrical 143
1708	1708	service under special contracts as of August 28, 2021, even 144
1709	1709	if a retail customer elects to purchase electricity from an 145
1710	1710	alternative electricity supplier following a fundamental 146
1711	1711	change in regulation of public utilities in this state; 147 SB 214 55
1712	1712	(17) "Securitized utility tariff costs", either energy 148
1713	1713	transition costs or qualified extraordinary costs as the 149
1714	1714	case may be; 150
1715	1715	(18) "Securitized utility tariff property", all of the 151
1716	1716	following: 152
1717	1717	(a) All rights and interests of an electrical 153
1718	1718	corporation or successor or assignee of the electrical 154
1719	1719	corporation under a financing order, including the right to 155
1720	1720	impose, bill, charge, collect, and receive securitized 156
1721	1721	utility tariff charges autho rized under the financing order 157
1722	1722	and to obtain periodic adjustments to such charges as 158
1723	1723	provided in the financing order; 159
1724	1724	(b) All revenues, collections, claims, rights to 160
1725	1725	payments, payments, money, or proceeds arising from the 161
1726	1726	rights and interests s pecified in the financing order, 162
1727	1727	regardless of whether such revenues, collections, claims, 163
1728	1728	rights to payment, payments, money, or proceeds are imposed, 164
1729	1729	billed, received, collected, or maintained together with or 165
1730	1730	commingled with other revenues, collecti ons, rights to 166
1731	1731	payment, payments, money, or proceeds; 167
1732	1732	(19) "Special contract", electrical service provided 168
1733	1733	under the terms of a special incremental load rate schedule 169
1734	1734	at a fixed price rate approved by the commission. 170
1735	1735	2. (1) An electrical corporation may petition the 171
1736	1736	commission for a financing order to finance energy 172
1737	1737	transition costs through an issuance of securitized utility 173
1738	1738	tariff bonds. The petition shall include all of the 174
1739	1739	following: 175
1740	1740	(a) A description of the electric generating facility 176
1741	1741	or facilities that the electrical corporation has retired or 177
1742	1742	abandoned, or proposes to retire or abandon, prior to the 178
1743	1743	date that all undepreciated investment relating thereto has 179 SB 214 56
1744	1744	been recovered through rates and the reasons for undertaking 180
1745	1745	such early retirement or abandonment, or if the electrical 181
1746	1746	corporation is subject to a separate commission order or 182
1747	1747	proceeding relating to such retirement or abandonment as 183
1748	1748	contemplated by subdivision (2) of this subsection, and a 184
1749	1749	description of the ord er or other proceeding; 185
1750	1750	(b) The energy transition costs; 186
1751	1751	(c) An indicator of whether the electrical corporation 187
1752	1752	proposes to finance all or a portion of the energy 188
1753	1753	transition costs using securitized utility tariff bonds. If 189
1754	1754	the electrical corporation proposes to finance a portion of 190
1755	1755	the costs, the electrical corporation shall identify the 191
1756	1756	specific portion in the petition. By electing not to 192
1757	1757	finance all or any portion of such energy transition costs 193
1758	1758	using securitized utility tariff bonds, an electrical 194
1759	1759	corporation shall not be deemed to waive its right to 195
1760	1760	recover such costs pursuant to a separate proceeding with 196
1761	1761	the commission; 197
1762	1762	(d) An estimate of the financing costs related to the 198
1763	1763	securitized utility tariff bonds; 199
1764	1764	(e) An estimate of the securitized utility tariff 200
1765	1765	charges necessary to recover the securitized utility tariff 201
1766	1766	costs and financing costs and the period for recovery of 202
1767	1767	such costs; 203
1768	1768	(f) A comparison between the net present value of the 204
1769	1769	costs to customers that are estimated to result from the 205
1770	1770	issuance of securitized utility tariff bonds and the costs 206
1771	1771	that would result from the application of the traditional 207
1772	1772	method of financing and recovering the undepreciated 208
1773	1773	investment of facilities that may become securit ized utility 209
1774	1774	tariff costs from customers. The comparison should 210
1775	1775	demonstrate that the issuance of securitized utility tariff 211 SB 214 57
1776	1776	bonds and the imposition of securitized utility tariff 212
1777	1777	charges are expected to provide quantifiable net present 213
1778	1778	value benefits to customers; 214
1779	1779	(g) A proposed future ratemaking process to reconcile 215
1780	1780	any differences between securitized utility tariff costs 216
1781	1781	financed by securitized utility tariff bonds and the final 217
1782	1782	securitized costs incurred by the electrical corporation or 218
1783	1783	assignee provided that any such reconciliation shall not 219
1784	1784	affect the amount of securitized utility tariff bonds or the 220
1785	1785	associated securitized utility tariff charges paid by 221
1786	1786	customers; and 222
1787	1787	(h) Direct testimony supporting the petition. 223
1788	1788	(2) An electrical corporation may petition the 224
1789	1789	commission for a financing order to finance qualified 225
1790	1790	extraordinary costs. The petition shall include all of the 226
1791	1791	following: 227
1792	1792	(a) A description of the qualified extraordinary 228
1793	1793	costs, including their magnitude, the reasons those costs 229
1794	1794	were incurred by the electrical corporation and the retail 230
1795	1795	customer rate impact that would result from customary 231
1796	1796	ratemaking treatment of such costs; 232
1797	1797	(b) An indicator of whether the electrical corporation 233
1798	1798	proposes to finance all or a portion of the qualified 234
1799	1799	extraordinary costs using securitized utility tariff bonds. 235
1800	1800	If the electrical corporation proposes to finance a portion 236
1801	1801	of the costs, the electrical corporation shall identify the 237
1802	1802	specific portion in the petition. By electing not to 238
1803	1803	finance all or any portion of such qualified extraordinary 239
1804	1804	costs using securitized utility tariff bonds, an electrical 240
1805	1805	corporation shall not be deemed to waive its right to 241
1806	1806	reflect such costs in its retail rates pursuant to a 242
1807	1807	separate proceeding with the commission; 243 SB 214 58
1808	1808	(c) An estimate of the financing costs related to the 244
1809	1809	securitized utility tariff bonds; 245
1810	1810	(d) An estimate of the securitized utility tariff 246
1811	1811	charges necessary to recover the qualified extraordinary 247
1812	1812	costs and financing costs and the period for recovery of 248
1813	1813	such costs; 249
1814	1814	(e) A comparison between the net present value of the 250
1815	1815	costs to customers that are estimated to result from the 251
1816	1816	issuance of securitized utility tariff bonds and the costs 252
1817	1817	that would result from the application of the customary 253
1818	1818	method of financing and reflecting the qualified 254
1819	1819	extraordinary costs in retail customer rates. The 255
1820	1820	comparison should demonstrate that the issuance of 256
1821	1821	securitized utility tariff bonds and the imposition of 257
1822	1822	securitized utility tariff charges are expected to provide 258
1823	1823	quantifiable net present value benefits to retail customers; 259
1824	1824	(f) A proposed future ratemaking process to reconcile 260
1825	1825	any differences between securitized utility tariff costs 261
1826	1826	financed by securitized utility tariff bonds and the final 262
1827	1827	securitized costs incurred by the electrical corporation or 263
1828	1828	assignee provided that any such reconciliation shall not 264
1829	1829	affect the amount of securitized utility tariff bonds or the 265
1830	1830	associated securitized utility tariff charges paid by 266
1831	1831	customers; and 267
1832	1832	(g) Direct testimony supporting the petition. 268
1833	1833	(3) (a) Proceedings on a petition submitted pursuant 269
1834	1834	to this subsection begin with the petition by an electrical 270
1835	1835	corporation and shall be disposed of in accordance with the 271
1836	1836	requirements of this section and the rules of the 272
1837	1837	commission, except as follows: 273
1838	1838	a. The commission shall establish a procedural 274
1839	1839	schedule that permits a commission decision no later than 275 SB 214 59
1840	1840	two hundred fifteen days after the date the petiti on is 276
1841	1841	filed; 277
1842	1842	b. No later than two hundred fifteen days after the 278
1843	1843	date the petition is filed, the commission shall issue a 279
1844	1844	financing order approving the petition, an order approving 280
1845	1845	the petition subject to conditions, or an order rejecting 281
1846	1846	the petition; provided, however, that the electrical 282
1847	1847	corporation shall provide notice of intent to file a 283
1848	1848	petition for a financing order to the commission no less 284
1849	1849	than sixty days in advance of such filing; 285
1850	1850	c. Judicial review of a financing order may be had 286
1851	1851	only in accordance with sections 386.500 and 386.510. 287
1852	1852	(b) In performing its responsibilities under this 288
1853	1853	section in approving, approving subject to conditions, or 289
1854	1854	rejecting a petition for a financing order, the commission 290
1855	1855	may retain counsel, o ne or more financial advisors, or other 291
1856	1856	consultants as it deems appropriate. Such outside counsel, 292
1857	1857	advisor or advisors, or consultants shall owe a duty of 293
1858	1858	loyalty solely to the commission and shall have no interest 294
1859	1859	in the proposed securitized utility tariff bonds. The costs 295
1860	1860	associated with any such engagements shall be paid by the 296
1861	1861	petitioning corporation and shall be included as financed 297
1862	1862	costs in the securitized utility tariff charge and shall not 298
1863	1863	be an obligation of the state and shall be assigne d solely 299
1864	1864	to the subject transaction. The commission may directly 300
1865	1865	contract counsel, financial advisors, or other consultants 301
1866	1866	as necessary for effectuating the purposes of this section. 302
1867	1867	Such contracting procedures shall not be subject to the 303
1868	1868	provisions of chapter 34. However, the commission shall 304
1869	1869	establish a policy for the bid process. Such policy shall 305
1870	1870	be publicly available and any information related to 306 SB 214 60
1871	1871	contracts under the established policy shall be included in 307
1872	1872	publicly available rate case doc umentation. 308
1873	1873	(c) A financing order issued by the commission, after 309
1874	1874	a hearing, to an electrical corporation shall include all of 310
1875	1875	the following elements: 311
1876	1876	a. The amount of securitized utility tariff costs to 312
1877	1877	be financed using securitized utility tariff bonds and a 313
1878	1878	finding that recovery of such costs is just and reasonable 314
1879	1879	and in the public interest. The commission shall describe 315
1880	1880	and estimate the amount of financing costs that may be 316
1881	1881	recovered through securitized utility tariff charges and 317
1882	1882	specify the period over which securitized utility tariff 318
1883	1883	costs and financing costs may be recovered; 319
1884	1884	b. A finding that the proposed issuance of securitized 320
1885	1885	utility tariff bonds and the imposition and collection of a 321
1886	1886	securitized utility tariff charg e are just and reasonable 322
1887	1887	and in the public interest and are expected to provide 323
1888	1888	quantifiable net present value benefits to customers as 324
1889	1889	compared to recovery of the components of securitized 325
1890	1890	utility tariff costs that would have been incurred absent 326
1891	1891	the issuance of securitized utility tariff bonds. 327
1892	1892	Notwithstanding any provisions of this section to the 328
1893	1893	contrary, in considering whether to find the proposed 329
1894	1894	issuance of securitized utility tariff bonds and the 330
1895	1895	imposition and collection of a securitized utility tariff 331
1896	1896	charge are just and reasonable and in the public interest, 332
1897	1897	the commission may consider previous instances where it has 333
1898	1898	issued financing orders to the petitioning electrical 334
1899	1899	corporation and such electrical corporation has previously 335
1900	1900	issued securitized utility tariff bonds; 336
1901	1901	c. A finding that the proposed structuring and pricing 337
1902	1902	of the securitized utility tariff bonds are reasonably 338 SB 214 61
1903	1903	expected to result in the lowest securitized utility tariff 339
1904	1904	charges consistent with market conditio ns at the time the 340
1905	1905	securitized utility tariff bonds are priced and the terms of 341
1906	1906	the financing order; 342
1907	1907	d. A requirement that, for so long as the securitized 343
1908	1908	utility tariff bonds are outstanding and until all financing 344
1909	1909	costs have been paid in full, the imposition and collection 345
1910	1910	of securitized utility tariff charges authorized under a 346
1911	1911	financing order shall be nonbypassable and paid by all 347
1912	1912	existing and future retail customers receiving electrical 348
1913	1913	service from the electrical corporation or its succe ssors or 349
1914	1914	assignees under commission -approved rate schedules except 350
1915	1915	for customers receiving electrical service under special 351
1916	1916	contracts on August 28, 2021, even if a retail customer 352
1917	1917	elects to purchase electricity from an alternative electric 353
1918	1918	supplier following a fundamental change in regulation of 354
1919	1919	public utilities in this state; 355
1920	1920	e. A formula-based true-up mechanism for making, at 356
1921	1921	least annually, expeditious periodic adjustments in the 357
1922	1922	securitized utility tariff charges that customers are 358
1923	1923	required to pay pursuant to the financing order and for 359
1924	1924	making any adjustments that are necessary to correct for any 360
1925	1925	overcollection or undercollection of the charges or to 361
1926	1926	otherwise ensure the timely payment of securitized utility 362
1927	1927	tariff bonds and financing costs and other required amounts 363
1928	1928	and charges payable under the securitized utility tariff 364
1929	1929	bonds; 365
1930	1930	f. The securitized utility tariff property that is, or 366
1931	1931	shall be, created in favor of an electrical corporation or 367
1932	1932	its successors or assignees and tha t shall be used to pay or 368
1933	1933	secure securitized utility tariff bonds and approved 369
1934	1934	financing costs; 370 SB 214 62
1935	1935	g. The degree of flexibility to be afforded to the 371
1936	1936	electrical corporation in establishing the terms and 372
1937	1937	conditions of the securitized utility tariff b onds, 373
1938	1938	including, but not limited to, repayment schedules, expected 374
1939	1939	interest rates, and other financing costs; 375
1940	1940	h. How securitized utility tariff charges will be 376
1941	1941	allocated among retail customer classes. The initial 377
1942	1942	allocation shall remain in effec t until the electrical 378
1943	1943	corporation completes a general rate proceeding, and once 379
1944	1944	the commission's order from that general rate proceeding 380
1945	1945	becomes final, all subsequent applications of an adjustment 381
1946	1946	mechanism regarding securitized utility tariff charges shall 382
1947	1947	incorporate changes in the allocation of costs to customers 383
1948	1948	as detailed in the commission's order from the electrical 384
1949	1949	corporation's most recent general rate proceeding; 385
1950	1950	i. A requirement that, after the final terms of an 386
1951	1951	issuance of securitized utility tariff bonds have been 387
1952	1952	established and before the issuance of securitized utility 388
1953	1953	tariff bonds, the electrical corporation determines the 389
1954	1954	resulting initial securitized utility tariff charge in 390
1955	1955	accordance with the financing order, and that such initial 391
1956	1956	securitized utility tariff charge be final and effective 392
1957	1957	upon the issuance of such securitized utility tariff bonds 393
1958	1958	with such charge to be reflected on a compliance tariff 394
1959	1959	sheet bearing such charge; 395
1960	1960	j. A method of tracing funds colle cted as securitized 396
1961	1961	utility tariff charges, or other proceeds of securitized 397
1962	1962	utility tariff property, determining that such method shall 398
1963	1963	be deemed the method of tracing such funds and determining 399
1964	1964	the identifiable cash proceeds of any securitized utilit y 400
1965	1965	tariff property subject to a financing order under 401
1966	1966	applicable law; 402 SB 214 63
1967	1967	k. A statement specifying a future ratemaking process 403
1968	1968	to reconcile any differences between the actual securitized 404
1969	1969	utility tariff costs financed by securitized utility tariff 405
1970	1970	bonds and the final securitized utility tariff costs 406
1971	1971	incurred by the electrical corporation or assignee provided 407
1972	1972	that any such reconciliation shall not affect the amount of 408
1973	1973	securitized utility tariff bonds or the associated 409
1974	1974	securitized utility tariff cha rges paid by customers; 410
1975	1975	l. A procedure that shall allow the electrical 411
1976	1976	corporation to earn a return, at the cost of capital 412
1977	1977	authorized from time to time by the commission in the 413
1978	1978	electrical corporation's rate proceedings, on any moneys 414
1979	1979	advanced by the electrical corporation to fund reserves, if 415
1980	1980	any, or capital accounts established under the terms of any 416
1981	1981	indenture, ancillary agreement, or other financing documents 417
1982	1982	pertaining to the securitized utility tariff bonds; 418
1983	1983	m. In a financing order g ranting authorization to 419
1984	1984	securitize energy transition costs or in a financing order 420
1985	1985	granting authorization to securitize qualified extraordinary 421
1986	1986	costs that include retired or abandoned facility costs, a 422
1987	1987	procedure for the treatment of accumulated deferr ed income 423
1988	1988	taxes and excess deferred income taxes in connection with 424
1989	1989	the retired or abandoned or to be retired or abandoned 425
1990	1990	electric generating facility, or in connection with retired 426
1991	1991	or abandoned facilities included in qualified extraordinary 427
1992	1992	costs. The accumulated deferred income taxes, including 428
1993	1993	excess deferred income taxes, shall be excluded from rate 429
1994	1994	base in future general rate cases and the net tax benefits 430
1995	1995	relating to amounts that will be recovered through the 431
1996	1996	issuance of securitized utility tariff bonds shall be 432
1997	1997	credited to retail customers by reducing the amount of such 433
1998	1998	securitized utility tariff bonds that would otherwise be 434 SB 214 64
1999	1999	issued. The customer credit shall include the net present 435
2000	2000	value of the tax benefits, calculated using a discoun t rate 436
2001	2001	equal to the expected interest rate of the securitized 437
2002	2002	utility tariff bonds, for the estimated accumulated and 438
2003	2003	excess deferred income taxes at the time of securitization 439
2004	2004	including timing differences created by the issuance of 440
2005	2005	securitized utility tariff bonds amortized over the period 441
2006	2006	of the bonds multiplied by the expected interest rate on 442
2007	2007	such securitized utility tariff bonds; 443
2008	2008	n. An outside date, which shall not be earlier than 444
2009	2009	one year after the date the financing order is no longer 445
2010	2010	subject to appeal, when the authority to issue securitized 446
2011	2011	utility tariff bonds granted in such financing order shall 447
2012	2012	expire; and 448
2013	2013	o. Include any other conditions that the commission 449
2014	2014	considers appropriate and that are not inconsistent with 450
2015	2015	this section. 451
2016	2016	(d) A financing order issued to an electrical 452
2017	2017	corporation may provide that creation of the electrical 453
2018	2018	corporation's securitized utility tariff property is 454
2019	2019	conditioned upon, and simultaneous with, the sale or other 455
2020	2020	transfer of the securitiz ed utility tariff property to an 456
2021	2021	assignee and the pledge of the securitized utility tariff 457
2022	2022	property to secure securitized utility tariff bonds. 458
2023	2023	(e) If the commission issues a financing order, the 459
2024	2024	electrical corporation shall file with the commissi on at 460
2025	2025	least annually a petition or a letter applying the formula - 461
2026	2026	based true-up mechanism and, based on estimates of 462
2027	2027	consumption for each rate class and other mathematical 463
2028	2028	factors, requesting administrative approval to make the 464
2029	2029	applicable adjustments. The review of the filing shall be 465
2030	2030	limited to determining whether there are any mathematical or 466 SB 214 65
2031	2031	clerical errors in the application of the formula -based true- 467
2032	2032	up mechanism relating to the appropriate amount of any 468
2033	2033	overcollection or undercollection of sec uritized utility 469
2034	2034	tariff charges and the amount of an adjustment. The 470
2035	2035	adjustments shall ensure the recovery of revenues sufficient 471
2036	2036	to provide for the payment of principal, interest, 472
2037	2037	acquisition, defeasance, financing costs, or redemption 473
2038	2038	premium and other fees, costs, and charges in respect of 474
2039	2039	securitized utility tariff bonds approved under the 475
2040	2040	financing order. Within thirty days after receiving an 476
2041	2041	electrical corporation's request pursuant to this paragraph, 477
2042	2042	the commission shall either approve the request or inform 478
2043	2043	the electrical corporation of any mathematical or clerical 479
2044	2044	errors in its calculation. If the commission informs the 480
2045	2045	electrical corporation of mathematical or clerical errors in 481
2046	2046	its calculation, the electrical corporation shall corre ct 482
2047	2047	its error and refile its request. The time frames 483
2048	2048	previously described in this paragraph shall apply to a 484
2049	2049	refiled request. 485
2050	2050	(f) At the time of any transfer of securitized utility 486
2051	2051	tariff property to an assignee or the issuance of 487
2052	2052	securitized utility tariff bonds authorized thereby, 488
2053	2053	whichever is earlier, a financing order is irrevocable and, 489
2054	2054	except for changes made pursuant to the formula -based true- 490
2055	2055	up mechanism authorized in this section, the commission may 491
2056	2056	not amend, modify, or terminate t he financing order by any 492
2057	2057	subsequent action or reduce, impair, postpone, terminate, or 493
2058	2058	otherwise adjust securitized utility tariff charges approved 494
2059	2059	in the financing order. After the issuance of a financing 495
2060	2060	order, the electrical corporation retains sol e discretion 496
2061	2061	regarding whether to assign, sell, or otherwise transfer 497
2062	2062	securitized utility tariff property or to cause securitized 498 SB 214 66
2063	2063	utility tariff bonds to be issued, including the right to 499
2064	2064	defer or postpone such assignment, sale, transfer, or 500
2065	2065	issuance. 501
2066	2066	(g) The commission, in a financing order and subject 502
2067	2067	to the issuance advice letter process under paragraph (h) of 503
2068	2068	this subdivision, shall specify the degree of flexibility to 504
2069	2069	be afforded the electrical corporation in establishing the 505
2070	2070	terms and conditions for the securitized utility tariff 506
2071	2071	bonds to accommodate changes in market conditions, including 507
2072	2072	repayment schedules, interest rates, financing costs, 508
2073	2073	collateral requirements, required debt service and other 509
2074	2074	reserves and the ability of the ele ctrical corporation, at 510
2075	2075	its option, to effect a series of issuances of securitized 511
2076	2076	utility tariff bonds and correlated assignments, sales, 512
2077	2077	pledges, or other transfers of securitized utility tariff 513
2078	2078	property. Any changes made under this paragraph to ter ms 514
2079	2079	and conditions for the securitized utility tariff bonds 515
2080	2080	shall be in conformance with the financing order. 516
2081	2081	(h) As the actual structure and pricing of the 517
2082	2082	securitized utility tariff bonds will be unknown at the time 518
2083	2083	the financing order is issued , prior to the issuance of each 519
2084	2084	series of bonds, an issuance advice letter shall be provided 520
2085	2085	to the commission by the electrical corporation following 521
2086	2086	the determination of the final terms of such series of bonds 522
2087	2087	no later than one day after the pricing of the securitized 523
2088	2088	utility tariff bonds. The commission shall have the 524
2089	2089	authority to designate a representative or representatives 525
2090	2090	from commission staff, who may be advised by a financial 526
2091	2091	advisor or advisors contracted with the commission, to 527
2092	2092	provide input to the electrical corporation and collaborate 528
2093	2093	with the electrical corporation in all facets of the process 529
2094	2094	undertaken by the electrical corporation to place the 530 SB 214 67
2095	2095	securitized utility tariff bonds to market so the 531
2096	2096	commission's representative or repr esentatives can provide 532
2097	2097	the commission with an opinion on the reasonableness of the 533
2098	2098	pricing, terms, and conditions of the securitized utility 534
2099	2099	tariff bonds on an expedited basis. Neither the designated 535
2100	2100	representative or representatives from the commiss ion staff 536
2101	2101	nor one or more financial advisors advising commission staff 537
2102	2102	shall have authority to direct how the electrical 538
2103	2103	corporation places the bonds to market although they shall 539
2104	2104	be permitted to attend all meetings convened by the 540
2105	2105	electrical corporation to address placement of the bonds to 541
2106	2106	market. The form of such issuance advice letter shall be 542
2107	2107	included in the financing order and shall indicate the final 543
2108	2108	structure of the securitized utility tariff bonds and 544
2109	2109	provide the best available estimate of total ongoing 545
2110	2110	financing costs. The issuance advice letter shall report 546
2111	2111	the initial securitized utility tariff charges and other 547
2112	2112	information specific to the securitized utility tariff bonds 548
2113	2113	to be issued, as the commission may require. Unless an 549
2114	2114	earlier date is specified in the financing order, the 550
2115	2115	electrical corporation may proceed with the issuance of the 551
2116	2116	securitized utility tariff bonds unless, prior to noon on 552
2117	2117	the fourth business day after the commission receives the 553
2118	2118	issuance advice letter, th e commission issues a disapproval 554
2119	2119	letter directing that the bonds as proposed shall not be 555
2120	2120	issued and the basis for that disapproval. The financing 556
2121	2121	order may provide such additional provisions relating to the 557
2122	2122	issuance advice letter process as the comm ission considers 558
2123	2123	appropriate and as are not inconsistent with this section. 559
2124	2124	(4) (a) In performing the responsibilities of this 560
2125	2125	section in connection with the issuance of a financing 561
2126	2126	order, approving the petition, an order approving the 562 SB 214 68
2127	2127	petition subject to conditions, or an order rejecting the 563
2128	2128	petition, the commission shall undertake due diligence as it 564
2129	2129	deems appropriate prior to the issuance of the order 565
2130	2130	regarding the petition pursuant to which the commission may 566
2131	2131	request additional informatio n from the electrical 567
2132	2132	corporation and may engage one or more financial advisors, 568
2133	2133	one or more consultants, and counsel as the commission deems 569
2134	2134	necessary. Any financial advisor or advisors, counsel, and 570
2135	2135	consultants engaged by the commission shall have a fiduciary 571
2136	2136	duty with respect to the proposed issuance of securitized 572
2137	2137	utility bonds solely to the commission. All expenses 573
2138	2138	associated with such services shall be included as part of 574
2139	2139	the financing costs of the securitized utility tariff bonds 575
2140	2140	and shall be included in the securitized utility tariff 576
2141	2141	charge. 577
2142	2142	(b) If an electrical corporation's petition for a 578
2143	2143	financing order is denied or withdrawn, or for any reason 579
2144	2144	securitized utility tariff bonds are not issued, any costs 580
2145	2145	of retaining one or more financial advisors, one or more 581
2146	2146	consultants, and counsel on behalf of the commission shall 582
2147	2147	be paid by the petitioning electrical corporation and shall 583
2148	2148	be eligible for full recovery, including carrying costs, if 584
2149	2149	approved by the commission in the electr ical corporation's 585
2150	2150	future rates. 586
2151	2151	(5) At the request of an electrical corporation, the 587
2152	2152	commission may commence a proceeding and issue a subsequent 588
2153	2153	financing order that provides for refinancing, retiring, or 589
2154	2154	refunding securitized utility tariff bon ds issued pursuant 590
2155	2155	to the original financing order if the commission finds that 591
2156	2156	the subsequent financing order satisfies all of the criteria 592
2157	2157	specified in this section for a financing order. Effective 593
2158	2158	upon retirement of the refunded securitized utility tariff 594 SB 214 69
2159	2159	bonds and the issuance of new securitized utility tariff 595
2160	2160	bonds, the commission shall adjust the related securitized 596
2161	2161	utility tariff charges accordingly. 597
2162	2162	(6) (a) A financing order remains in effect and 598
2163	2163	securitized utility tariff property u nder the financing 599
2164	2164	order continues to exist until securitized utility tariff 600
2165	2165	bonds issued pursuant to the financing order have been paid 601
2166	2166	in full or defeased and, in each case, all commission - 602
2167	2167	approved financing costs of such securitized utility tariff 603
2168	2168	bonds have been recovered in full. 604
2169	2169	(b) A financing order issued to an electrical 605
2170	2170	corporation remains in effect and unabated notwithstanding 606
2171	2171	the reorganization, bankruptcy, or other insolvency 607
2172	2172	proceedings, merger, or sale of the electrical corporat ion 608
2173	2173	or its successors or assignees. 609
2174	2174	3. (1) The commission may not, in exercising its 610
2175	2175	powers and carrying out its duties regarding any matter 611
2176	2176	within its authority, consider the securitized utility 612
2177	2177	tariff bonds issued pursuant to a financing order to be the 613
2178	2178	debt of the electrical corporation other than for federal 614
2179	2179	and state income tax purposes, consider the securitized 615
2180	2180	utility tariff charges paid under the financing order to be 616
2181	2181	the revenue of the electrical corporation for any purpose, 617
2182	2182	consider the securitized utility tariff costs or financing 618
2183	2183	costs specified in the financing order to be the costs of 619
2184	2184	the electrical corporation, nor may the commission determine 620
2185	2185	any action taken by an electrical corporation which is 621
2186	2186	consistent with the financ ing order to be unjust or 622
2187	2187	unreasonable, and section 386.300 shall not apply to the 623
2188	2188	issuance of securitized utility tariff bonds. 624
2189	2189	(2) Securitized utility tariff charges shall not be 625
2190	2190	utilized or accounted for in determining the electrical 626 SB 214 70
2191	2191	corporation's average overall rate, as defined in section 627
2192	2192	393.1655 and as used to determine the maximum retail rate 628
2193	2193	impact limitations provided for by subsections 3 and 4 of 629
2194	2194	section 393.1655. 630
2195	2195	(3) No electrical corporation is required to file a 631
2196	2196	petition for a financing order under this section or 632
2197	2197	otherwise utilize this section. An electrical corporation's 633
2198	2198	decision not to file a petition for a financing order under 634
2199	2199	this section shall not be admissible in any commission 635
2200	2200	proceeding nor shall it be otherwi se utilized or relied on 636
2201	2201	by the commission in any proceeding respecting the 637
2202	2202	electrical corporation's rates or its accounting, including, 638
2203	2203	without limitation, any general rate proceeding, fuel 639
2204	2204	adjustment clause docket, or proceedings relating to 640
2205	2205	accounting authority, whether initiated by the electrical 641
2206	2206	corporation or otherwise. The commission may not order or 642
2207	2207	otherwise directly or indirectly require an electrical 643
2208	2208	corporation to use securitized utility tariff bonds to 644
2209	2209	recover securitized utility tari ff costs or to finance any 645
2210	2210	project, addition, plant, facility, extension, capital 646
2211	2211	improvement, equipment, or any other expenditure. 647
2212	2212	(4) The commission may not refuse to allow an 648
2213	2213	electrical corporation to recover securitized utility tariff 649
2214	2214	costs in an otherwise permissible fashion, or refuse or 650
2215	2215	condition authorization or approval of the issuance and sale 651
2216	2216	by an electrical corporation of securities or the assumption 652
2217	2217	by the electrical corporation of liabilities or obligations, 653
2218	2218	because of the poten tial availability of securitized utility 654
2219	2219	tariff bond financing. 655
2220	2220	(5) After the issuance of a financing order with or 656
2221	2221	without conditions, the electrical corporation retains sole 657
2222	2222	discretion regarding whether to cause the securitized 658 SB 214 71
2223	2223	utility tariff bonds to be issued, including the right to 659
2224	2224	defer or postpone such sale, assignment, transfer, or 660
2225	2225	issuance. Nothing shall prevent the electrical corporation 661
2226	2226	from abandoning the issuance of securitized utility tariff 662
2227	2227	bonds under the financing order by fi ling with the 663
2228	2228	commission a statement of abandonment and the reasons 664
2229	2229	therefor; provided, that the electrical corporation's 665
2230	2230	abandonment decision shall not be deemed imprudent because 666
2231	2231	of the potential availability of securitized utility tariff 667
2232	2232	bond financing; and provided further, that an electrical 668
2233	2233	corporation's decision to abandon issuance of such bonds may 669
2234	2234	be raised by any party, including the commission, as a 670
2235	2235	reason the commission should not authorize, or should 671
2236	2236	modify, the rate-making treatment proposed by the electrical 672
2237	2237	corporation of the costs associated with the electric 673
2238	2238	generating facility that was the subject of a petition under 674
2239	2239	this section that would have been securitized as energy 675
2240	2240	transition costs had such abandonment decision not been 676
2241	2241	made, but only if the electrical corporation requests 677
2242	2242	nonstandard plant retirement treatment of such costs for 678
2243	2243	rate-making purposes. 679
2244	2244	(6) The commission may not, directly or indirectly, 680
2245	2245	utilize or consider the debt reflected by the securitized 681
2246	2246	utility tariff bonds in establishing the electrical 682
2247	2247	corporation's capital structure used to determine any 683
2248	2248	regulatory matter, including but not limited to the 684
2249	2249	electrical corporation's revenue requirement used to set its 685
2250	2250	rates. 686
2251	2251	(7) The commission may not, directly or indirectly, 687
2252	2252	consider the existence of securitized utility tariff bonds 688
2253	2253	or the potential use of securitized utility tariff bond 689
2254	2254	financing proceeds in determining the electrical 690 SB 214 72
2255	2255	corporation's authorized rate of return used to determine 691
2256	2256	the electrical corporation's revenue requirement used to set 692
2257	2257	its rates. 693
2258	2258	4. The electric bills of an electrical corporation 694
2259	2259	that has obtained a financing order and caused securitized 695
2260	2260	utility tariff bonds to be issued shall comply with the 696
2261	2261	provisions of this subsection; however, the failure of an 697
2262	2262	electrical corporation to comply with this subsection does 698
2263	2263	not invalidate, impair, or affect any financing order, 699
2264	2264	securitized utility tariff property, securitized utility 700
2265	2265	tariff charge, or securitized utility tariff bonds. The 701
2266	2266	electrical corporation shall do the following: 702
2267	2267	(1) Explicitly reflect that a portion of the charges 703
2268	2268	on such bill represents securitized utility tariff charges 704
2269	2269	approved in a financing order issued to the electrical 705
2270	2270	corporation and, if the securitized utility tariff property 706
2271	2271	has been transferred to an assignee, shall include a 707
2272	2272	statement to the effect that the assignee is the owner of 708
2273	2273	the rights to securitized utility tariff charges and that 709
2274	2274	the electrical corporation or other entity, if applicable, 710
2275	2275	is acting as a collection agent or servicer for the 711
2276	2276	assignee. The tariff applicable to customers shall indicate 712
2277	2277	the securitized utility tariff charge and the ownership of 713
2278	2278	the charge; 714
2279	2279	(2) Include the securitized ut ility tariff charge on 715
2280	2280	each customer's bill as a separate line item and include 716
2281	2281	both the rate and the amount of the charge on each bill. 717
2282	2282	5. (1) (a) All securitized utility tariff property 718
2283	2283	that is specified in a financing order constitutes an 719
2284	2284	existing, present intangible property right or interest 720
2285	2285	therein, notwithstanding that the imposition and collection 721
2286	2286	of securitized utility tariff charges depends on the 722 SB 214 73
2287	2287	electrical corporation, to which the financing order is 723
2288	2288	issued, performing its servic ing functions relating to the 724
2289	2289	collection of securitized utility tariff charges and on 725
2290	2290	future electricity consumption. The property exists: 726
2291	2291	a. Regardless of whether or not the revenues or 727
2292	2292	proceeds arising from the property have been billed, have 728
2293	2293	accrued, or have been collected; and 729
2294	2294	b. Notwithstanding the fact that the value or amount 730
2295	2295	of the property is dependent on the future provision of 731
2296	2296	service to customers by the electrical corporation or its 732
2297	2297	successors or assignees and the future cons umption of 733
2298	2298	electricity by customers. 734
2299	2299	(b) Securitized utility tariff property specified in a 735
2300	2300	financing order exists until securitized utility tariff 736
2301	2301	bonds issued pursuant to the financing order are paid in 737
2302	2302	full and all financing costs and other co sts of such 738
2303	2303	securitized utility tariff bonds have been recovered in full. 739
2304	2304	(c) All or any portion of securitized utility tariff 740
2305	2305	property specified in a financing order issued to an 741
2306	2306	electrical corporation may be transferred, sold, conveyed, 742
2307	2307	or assigned to a successor or assignee that is wholly owned, 743
2308	2308	directly or indirectly, by the electrical corporation and 744
2309	2309	created for the limited purpose of acquiring, owning, or 745
2310	2310	administering securitized utility tariff property or issuing 746
2311	2311	securitized utility ta riff bonds under the financing order. 747
2312	2312	All or any portion of securitized utility tariff property 748
2313	2313	may be pledged to secure securitized utility tariff bonds 749
2314	2314	issued pursuant to the financing order, amounts payable to 750
2315	2315	financing parties and to counterpartie s under any ancillary 751
2316	2316	agreements, and other financing costs. Any transfer, sale, 752
2317	2317	conveyance, assignment, grant of a security interest in or 753
2318	2318	pledge of securitized utility tariff property by an 754 SB 214 74
2319	2319	electrical corporation, or an affiliate of the electrical 755
2320	2320	corporation, to an assignee, to the extent previously 756
2321	2321	authorized in a financing order, does not require the prior 757
2322	2322	consent and approval of the commission. 758
2323	2323	(d) If an electrical corporation defaults on any 759
2324	2324	required remittance of securitized utility t ariff charges 760
2325	2325	arising from securitized utility tariff property specified 761
2326	2326	in a financing order, a court, upon application by an 762
2327	2327	interested party, and without limiting any other remedies 763
2328	2328	available to the applying party, shall order the 764
2329	2329	sequestration and payment of the revenues arising from the 765
2330	2330	securitized utility tariff property to the financing parties 766
2331	2331	or their assignees. Any such financing order remains in 767
2332	2332	full force and effect notwithstanding any reorganization, 768
2333	2333	bankruptcy, or other insolvency pr oceedings with respect to 769
2334	2334	the electrical corporation or its successors or assignees. 770
2335	2335	(e) The interest of a transferee, purchaser, acquirer, 771
2336	2336	assignee, or pledgee in securitized utility tariff property 772
2337	2337	specified in a financing order issued to an ele ctrical 773
2338	2338	corporation, and in the revenue and collections arising from 774
2339	2339	that property, is not subject to setoff, counterclaim, 775
2340	2340	surcharge, or defense by the electrical corporation or any 776
2341	2341	other person or in connection with the reorganization, 777
2342	2342	bankruptcy, or other insolvency of the electrical 778
2343	2343	corporation or any other entity. 779
2344	2344	(f) Any successor to an electrical corporation, 780
2345	2345	whether pursuant to any reorganization, bankruptcy, or other 781
2346	2346	insolvency proceeding or whether pursuant to any merger or 782
2347	2347	acquisition, sale, or other business combination, or 783
2348	2348	transfer by operation of law, as a result of electrical 784
2349	2349	corporation restructuring or otherwise, shall perform and 785
2350	2350	satisfy all obligations of, and have the same rights under a 786 SB 214 75
2351	2351	financing order as, the electric al corporation under the 787
2352	2352	financing order in the same manner and to the same extent as 788
2353	2353	the electrical corporation, including collecting and paying 789
2354	2354	to the person entitled to receive the revenues, collections, 790
2355	2355	payments, or proceeds of the securitized util ity tariff 791
2356	2356	property. Nothing in this section is intended to limit or 792
2357	2357	impair any authority of the commission concerning the 793
2358	2358	transfer or succession of interests of public utilities. 794
2359	2359	(g) Securitized utility tariff bonds shall be 795
2360	2360	nonrecourse to the credit or any assets of the electrical 796
2361	2361	corporation other than the securitized utility tariff 797
2362	2362	property as specified in the financing order and any rights 798
2363	2363	under any ancillary agreement. 799
2364	2364	(2) (a) The creation, perfection, priority, and 800
2365	2365	enforcement of any security interest in securitized utility 801
2366	2366	tariff property to secure the repayment of the principal and 802
2367	2367	interest and other amounts payable in respect of securitized 803
2368	2368	utility tariff bonds, amounts payable under any ancillary 804
2369	2369	agreement and other finan cing costs are governed by this 805
2370	2370	section and not by the provisions of the code, except as 806
2371	2371	otherwise provided in this section. 807
2372	2372	(b) A security interest in securitized utility tariff 808
2373	2373	property is created, valid, and binding at the later of the 809
2374	2374	time: 810
2375	2375	a. The financing order is issued; 811
2376	2376	b. A security agreement is executed and delivered by 812
2377	2377	the debtor granting such security interest; 813
2378	2378	c. The debtor has rights in such securitized utility 814
2379	2379	tariff property or the power to transfer rights in su ch 815
2380	2380	securitized utility tariff property; or 816
2381	2381	d. Value is received for the securitized utility 817
2382	2382	tariff property. 818 SB 214 76
2383	2383	The description of securitized utility tariff property in a 819
2384	2384	security agreement is sufficient if the description refers 820
2385	2385	to this section and the financing order creating the 821
2386	2386	securitized utility tariff property. A security interest 822
2387	2387	shall attach as provided in this paragraph without any 823
2388	2388	physical delivery of collateral or other act. 824
2389	2389	(c) Upon the filing of a financing statement with the 825
2390	2390	office of the secretary of state as provided in this 826
2391	2391	section, a security interest in securitized utility tariff 827
2392	2392	property shall be perfected against all parties having 828
2393	2393	claims of any kind in tort, contract, or otherwise against 829
2394	2394	the person granting the security interest, and regardless of 830
2395	2395	whether the parties have notice of the security interest. 831
2396	2396	Without limiting the foregoing, upon such filing a security 832
2397	2397	interest in securitized utility tariff property shall be 833
2398	2398	perfected against all claims of lien cr editors, and shall 834
2399	2399	have priority over all competing security interests and 835
2400	2400	other claims other than any security interest previously 836
2401	2401	perfected in accordance with this section. 837
2402	2402	(d) The priority of a security interest in securitized 838
2403	2403	utility tariff property is not affected by the commingling 839
2404	2404	of securitized utility tariff charges with other amounts. 840
2405	2405	Any pledgee or secured party shall have a perfected security 841
2406	2406	interest in the amount of all securitized utility tariff 842
2407	2407	charges that are deposited in an y cash or deposit account of 843
2408	2408	the qualifying electrical corporation in which securitized 844
2409	2409	utility tariff charges have been commingled with other funds 845
2410	2410	and any other security interest that may apply to those 846
2411	2411	funds shall be terminated when they are transfe rred to a 847
2412	2412	segregated account for the assignee or a financing party. 848
2413	2413	(e) No application of the formula -based true-up 849
2414	2414	mechanism as provided in this section will affect the 850 SB 214 77
2415	2415	validity, perfection, or priority of a security interest in 851
2416	2416	or transfer of securitized utility tariff property. 852
2417	2417	(f) If a default occurs under the securitized utility 853
2418	2418	tariff bonds that are secured by a security interest in 854
2419	2419	securitized utility tariff property, the financing parties 855
2420	2420	or their representatives may exercise the rights and 856
2421	2421	remedies available to a secured party under the code, 857
2422	2422	including the rights and remedies available under part 6 of 858
2423	2423	article 9 of the code. The commission may also order 859
2424	2424	amounts arising from securitized utility tariff charges be 860
2425	2425	transferred to a separate account for the financing parties' 861
2426	2426	benefit, to which their lien and security interest shall 862
2427	2427	apply. On application by or on behalf of the financing 863
2428	2428	parties, the circuit court for the county or city in which 864
2429	2429	the electrical corporation's hea dquarters is located shall 865
2430	2430	order the sequestration and payment to them of revenues 866
2431	2431	arising from the securitized utility tariff charges. 867
2432	2432	(3) (a) Any sale, assignment, or other transfer of 868
2433	2433	securitized utility tariff property shall be an absolute 869
2434	2434	transfer and true sale of, and not a pledge of or secured 870
2435	2435	transaction relating to, the seller's right, title, and 871
2436	2436	interest in, to, and under the securitized utility tariff 872
2437	2437	property if the documents governing the transaction 873
2438	2438	expressly state that the tran saction is a sale or other 874
2439	2439	absolute transfer other than for federal and state income 875
2440	2440	tax purposes. For all purposes other than federal and state 876
2441	2441	income tax purposes, the parties' characterization of a 877
2442	2442	transaction as a sale of an interest in securitize d utility 878
2443	2443	tariff property shall be conclusive that the transaction is 879
2444	2444	a true sale and that ownership has passed to the party 880
2445	2445	characterized as the purchaser, regardless of whether the 881
2446	2446	purchaser has possession of any documents evidencing or 882 SB 214 78
2447	2447	pertaining to the interest. A sale or similar outright 883
2448	2448	transfer of an interest in securitized utility tariff 884
2449	2449	property may occur only when all of the following have 885
2450	2450	occurred: 886
2451	2451	a. The financing order creating the securitized 887
2452	2452	utility tariff property has become effective; 888
2453	2453	b. The documents evidencing the transfer of 889
2454	2454	securitized utility tariff property have been executed by 890
2455	2455	the assignor and delivered to the assignee; and 891
2456	2456	c. Value is received for the securitized utility 892
2457	2457	tariff property. 893
2458	2458	After such a transaction, the securitized utility tariff 894
2459	2459	property is not subject to any claims of the transferor or 895
2460	2460	the transferor's creditors, other than creditors holding a 896
2461	2461	prior security interest in the securitized utility tariff 897
2462	2462	property perfected in accordance with this section. 898
2463	2463	(b) The characterization of the sale, assignment, or 899
2464	2464	other transfer as an absolute transfer and true sale and the 900
2465	2465	corresponding characterization of the property interest of 901
2466	2466	the purchaser shall not be affected or impaired by the 902
2467	2467	occurrence of any of the following factors: 903
2468	2468	a. Commingling of securitized utility tariff charges 904
2469	2469	with other amounts; 905
2470	2470	b. The retention by the seller of (i) a partial or 906
2471	2471	residual interest, including an equity interest, in the 907
2472	2472	securitized utility tariff property, whether direct or 908
2473	2473	indirect, or whether subordinate or otherwise, or (ii) the 909
2474	2474	right to recover costs associated with taxes, franchise 910
2475	2475	fees, or license fees imposed on the collection of 911
2476	2476	securitized utility tariff charges; 912 SB 214 79
2477	2477	c. Any recourse that the purchaser may have against 913
2478	2478	the seller; 914
2479	2479	d. Any indemnification rights, obligations, or 915
2480	2480	repurchase rights made or provided by the seller; 916
2481	2481	e. The obligation of the seller to collect securitized 917
2482	2482	utility tariff charges on beha lf of an assignee; 918
2483	2483	f. The transferor acting as the servicer of the 919
2484	2484	securitized utility tariff charges or the existence of any 920
2485	2485	contract that authorizes or requires the electrical 921
2486	2486	corporation, to the extent that any interest in securitized 922
2487	2487	utility tariff property is sold or assigned, to contract 923
2488	2488	with the assignee or any financing party that it will 924
2489	2489	continue to operate its system to provide service to its 925
2490	2490	customers, will collect amounts in respect of the 926
2491	2491	securitized utility tariff charges for the benefit and 927
2492	2492	account of such assignee or financing party, and will 928
2493	2493	account for and remit such amounts to or for the account of 929
2494	2494	such assignee or financing party; 930
2495	2495	g. The treatment of the sale, conveyance, assignment, 931
2496	2496	or other transfer for tax, fina ncial reporting, or other 932
2497	2497	purposes; 933
2498	2498	h. The granting or providing to bondholders a 934
2499	2499	preferred right to the securitized utility tariff property 935
2500	2500	or credit enhancement by the electrical corporation or its 936
2501	2501	affiliates with respect to such securitized ut ility tariff 937
2502	2502	bonds; 938
2503	2503	i. Any application of the formula -based true-up 939
2504	2504	mechanism as provided in this section. 940
2505	2505	(c) Any right that an electrical corporation has in 941
2506	2506	the securitized utility tariff property before its pledge, 942
2507	2507	sale, or transfer or a ny other right created under this 943
2508	2508	section or created in the financing order and assignable 944 SB 214 80
2509	2509	under this section or assignable pursuant to a financing 945
2510	2510	order is property in the form of a contract right or a chose 946
2511	2511	in action. Transfer of an interest in secu ritized utility 947
2512	2512	tariff property to an assignee is enforceable only upon the 948
2513	2513	later of: 949
2514	2514	a. The issuance of a financing order; 950
2515	2515	b. The assignor having rights in such securitized 951
2516	2516	utility tariff property or the power to transfer rights in 952
2517	2517	such securitized utility tariff property to an assignee; 953
2518	2518	c. The execution and delivery by the assignor of 954
2519	2519	transfer documents in connection with the issuance of 955
2520	2520	securitized utility tariff bonds; and 956
2521	2521	d. The receipt of value for the securitized utility 957
2522	2522	tariff property. 958
2523	2523	An enforceable transfer of an interest in securitized 959
2524	2524	utility tariff property to an assignee is perfected against 960
2525	2525	all third parties, including subsequent judicial or other 961
2526	2526	lien creditors, when a notice of that transfer has been 962
2527	2527	given by the filing of a financing statement in accordance 963
2528	2528	with subsection 7 of this section. The transfer is 964
2529	2529	perfected against third parties as of the date of filing. 965
2530	2530	(d) The priority of a transfer perfected under this 966
2531	2531	section is not impaired by any later modification of the 967
2532	2532	financing order or securitized utility tariff property or by 968
2533	2533	the commingling of funds arising from securitized utility 969
2534	2534	tariff property with other funds. Any other security 970
2535	2535	interest that may apply to those funds, other than a 971
2536	2536	security interest perfected under this section, is 972
2537	2537	terminated when they are transferred to a segregated account 973
2538	2538	for the assignee or a financing party. If securitized 974
2539	2539	utility tariff property has been transferred to an assignee 975 SB 214 81
2540	2540	or financing party, any proceeds of that property shall be 976
2541	2541	held in trust for the assignee or financing party. 977
2542	2542	(e) The priority of the conflicting interests of 978
2543	2543	assignees in the same interest or rights in any securitized 979
2544	2544	utility tariff property is determined as follows: 980
2545	2545	a. Conflicting perfected interests or rights of 981
2546	2546	assignees rank according to priority in time of perfection. 982
2547	2547	Priority dates from the time a filing covering the transfer 983
2548	2548	is made in accordance with subsection 7 of this section; 984
2549	2549	b. A perfected interest or right of an assignee has 985
2550	2550	priority over a conflicting unperfected interest or right of 986
2551	2551	an assignee; 987
2552	2552	c. A perfected interest or right of an assignee has 988
2553	2553	priority over a person who becomes a lien creditor after the 989
2554	2554	perfection of such assig nee's interest or right. 990
2555	2555	6. The description of securitized utility tariff 991
2556	2556	property being transferred to an assignee in any sale 992
2557	2557	agreement, purchase agreement, or other transfer agreement, 993
2558	2558	granted or pledged to a pledgee in any security agreement, 994
2559	2559	pledge agreement, or other security document, or indicated 995
2560	2560	in any financing statement is only sufficient if such 996
2561	2561	description or indication refers to the financing order that 997
2562	2562	created the securitized utility tariff property and states 998
2563	2563	that the agreement or financing statement covers all or part 999
2564	2564	of the property described in the financing order. This 1000
2565	2565	section applies to all purported transfers of, and all 1001
2566	2566	purported grants or liens or security interests in, 1002
2567	2567	securitized utility tariff property, regardles s of whether 1003
2568	2568	the related sale agreement, purchase agreement, other 1004
2569	2569	transfer agreement, security agreement, pledge agreement, or 1005
2570	2570	other security document was entered into, or any financing 1006
2571	2571	statement was filed. 1007 SB 214 82
2572	2572	7. The secretary of state shall mainta in any financing 1008
2573	2573	statement filed to perfect a sale or other transfer of 1009
2574	2574	securitized utility tariff property and any security 1010
2575	2575	interest in securitized utility tariff property under this 1011
2576	2576	section in the same manner that the secretary of state 1012
2577	2577	maintains financing statements filed under the code to 1013
2578	2578	perfect a security interest in collateral owned by a 1014
2579	2579	transmitting utility. Except as otherwise provided in this 1015
2580	2580	section, all financing statements filed pursuant to this 1016
2581	2581	section shall be governed by the provis ions regarding 1017
2582	2582	financing statements and the filing thereof under the code, 1018
2583	2583	including part 5 of article 9 of the code. A security 1019
2584	2584	interest in securitized utility tariff property may be 1020
2585	2585	perfected only by the filing of a financing statement in 1021
2586	2586	accordance with this section, and no other method of 1022
2587	2587	perfection shall be effective. Notwithstanding any 1023
2588	2588	provision of the code to the contrary, a financing statement 1024
2589	2589	filed pursuant to this section is effective until a 1025
2590	2590	termination statement is filed under the co de, and no 1026
2591	2591	continuation statement need be filed to maintain its 1027
2592	2592	effectiveness. A financing statement filed pursuant to this 1028
2593	2593	section may indicate that the debtor is a transmitting 1029
2594	2594	utility, and without regard to whether the debtor is an 1030
2595	2595	electrical corporation, an assignee or otherwise qualifies 1031
2596	2596	as a transmitting utility under the code, but the failure to 1032
2597	2597	make such indication shall not impair the duration and 1033
2598	2598	effectiveness of the financing statement. 1034
2599	2599	8. The law governing the validity, enforceabi lity, 1035
2600	2600	attachment, perfection, priority, and exercise of remedies 1036
2601	2601	with respect to the transfer of an interest or right or the 1037
2602	2602	pledge or creation of a security interest in any securitized 1038
2603	2603	utility tariff property shall be the laws of this state. 1039 SB 214 83
2604	2604	9. Neither the state nor its political subdivisions 1040
2605	2605	are liable on any securitized utility tariff bonds, and the 1041
2606	2606	bonds are not a debt or a general obligation of the state or 1042
2607	2607	any of its political subdivisions, agencies, or 1043
2608	2608	instrumentalities, nor are they sp ecial obligations or 1044
2609	2609	indebtedness of the state or any agency or political 1045
2610	2610	subdivision. An issue of securitized utility tariff bonds 1046
2611	2611	does not, directly, indirectly, or contingently, obligate 1047
2612	2612	the state or any agency, political subdivision, or 1048
2613	2613	instrumentality of the state to levy any tax or make any 1049
2614	2614	appropriation for payment of the securitized utility tariff 1050
2615	2615	bonds, other than in their capacity as consumers of 1051
2616	2616	electricity. All securitized utility tariff bonds shall 1052
2617	2617	contain on the face thereof a state ment to the following 1053
2618	2618	effect: "Neither the full faith and credit nor the taxing 1054
2619	2619	power of the state of Missouri is pledged to the payment of 1055
2620	2620	the principal of, or interest on, this bond.". 1056
2621	2621	10. All of the following entities may legally invest 1057
2622	2622	any sinking funds, moneys, or other funds in securitized 1058
2623	2623	utility tariff bonds: 1059
2624	2624	(1) Subject to applicable statutory restrictions on 1060
2625	2625	state or local investment authority, the state, units of 1061
2626	2626	local government, political subdivisions, public bodies, and 1062
2627	2627	public officers, except for members of the commission, the 1063
2628	2628	commission's technical advisory and other staff, or 1064
2629	2629	employees of the office of the public counsel; 1065
2630	2630	(2) Banks and bankers, savings and loan associations, 1066
2631	2631	credit unions, trust companies, savin gs banks and 1067
2632	2632	institutions, investment companies, insurance companies, 1068
2633	2633	insurance associations, and other persons carrying on a 1069
2634	2634	banking or insurance business; 1070 SB 214 84
2635	2635	(3) Personal representatives, guardians, trustees, and 1071
2636	2636	other fiduciaries; 1072
2637	2637	(4) All other persons authorized to invest in bonds or 1073
2638	2638	other obligations of a similar nature. 1074
2639	2639	11. (1) The state and its agencies, including the 1075
2640	2640	commission, pledge and agree with bondholders, the owners of 1076
2641	2641	the securitized utility tariff property, and other financing 1077
2642	2642	parties that the state and its agencies will not take any 1078
2643	2643	action listed in this subdivision. This subdivision does 1079
2644	2644	not preclude limitation or alteration if full compensation 1080
2645	2645	is made by law for the full protection of the securitized 1081
2646	2646	utility tariff charges collected pursuant to a financing 1082
2647	2647	order and of the bondholders and any assignee or financing 1083
2648	2648	party entering into a contract with the electrical 1084
2649	2649	corporation. The prohibited actions are as follows: 1085
2650	2650	(a) Alter the provisions of this s ection, which 1086
2651	2651	authorize the commission to create an irrevocable contract 1087
2652	2652	right or chose in action by the issuance of a financing 1088
2653	2653	order, to create securitized utility tariff property, and 1089
2654	2654	make the securitized utility tariff charges imposed by a 1090
2655	2655	financing order irrevocable, binding, or nonbypassable 1091
2656	2656	charges for all existing and future retail customers of the 1092
2657	2657	electrical corporation except its existing special contract 1093
2658	2658	customers; 1094
2659	2659	(b) Take or permit any action that impairs or would 1095
2660	2660	impair the value of securitized utility tariff property or 1096
2661	2661	the security for the securitized utility tariff bonds or 1097
2662	2662	revises the securitized utility tariff costs for which 1098
2663	2663	recovery is authorized; 1099
2664	2664	(c) In any way impair the rights and remedies of the 1100
2665	2665	bondholders, assignees, and other financing parties; 1101 SB 214 85
2666	2666	(d) Except for changes made pursuant to the formula - 1102
2667	2667	based true-up mechanism authorized under this section, 1103
2668	2668	reduce, alter, or impair securitized utility tariff charges 1104
2669	2669	that are to be imposed, billed, charged, collected, and 1105
2670	2670	remitted for the benefit of the bondholders, any assignee, 1106
2671	2671	and any other financing parties until any and all principal, 1107
2672	2672	interest, premium, financing costs and other fees, expenses, 1108
2673	2673	or charges incurred, and any contracts to be performed, in 1109
2674	2674	connection with the related securitized utility tariff bonds 1110
2675	2675	have been paid and performed in full. 1111
2676	2676	(2) Any person or entity that issues securitized 1112
2677	2677	utility tariff bonds may include the language specified in 1113
2678	2678	this subsection in the securitized utility tariff bonds and 1114
2679	2679	related documentation. 1115
2680	2680	12. An assignee or financing party is not an 1116
2681	2681	electrical corporation or person providing electric service 1117
2682	2682	by virtue of engaging in the transactions described in this 1118
2683	2683	section. 1119
2684	2684	13. If there is a conflict between this section and 1120
2685	2685	any other law regarding the attachment, assignment, or 1121
2686	2686	perfection, or the effect of perfection, or priority of, 1122
2687	2687	assignment or transfer of, or security interest in 1123
2688	2688	securitized utility tariff property, this section shall 1124
2689	2689	govern. 1125
2690	2690	14. If any provision of this section is held invalid 1126
2691	2691	or is invalidated, superseded, replaced, repealed, or 1127
2692	2692	expires for any reason, that occurrence does not affect the 1128
2693	2693	validity of any action allowed under this section which is 1129
2694	2694	taken by an electrical corporation, an assignee, a financing 1130
2695	2695	party, a collection agent, or a party to an ancillary 1131
2696	2696	agreement; and any such action remains in full force and 1132
2697	2697	effect with respect to all securitized utility tariff bonds 1133 SB 214 86
2698	2698	issued or authorized in a fina ncing order issued under this 1134
2699	2699	section before the date that such provision is held invalid 1135
2700	2700	or is invalidated, superseded, replaced, or repealed, or 1136
2701	2701	expires for any reason. 1137
2702	2702	393.1900. 1. The commission shall, by August 28, 1
2703	2703	2026, and every four years or as needed thereafter, commence 2
2704	2704	an integrated resource planning proceeding for electrical 3
2705	2705	corporations. As part of such proceeding, the commission 4
2706	2706	shall: 5
2707	2707	(1) Identify any required planning reserve margins and 6
2708	2708	applicable local clearing requirements, and any proposed 7
2709	2709	planning reserve margins and local clearing requirements 8
2710	2710	which are scheduled to take effect within a relevant future 9
2711	2711	timeframe; 10
2712	2712	(2) Identify significant existing or proposed state or 11
2713	2713	federal environmental re gulations, laws, or rules and 12
2714	2714	identify how each such regulation, law, or rule may apply to 13
2715	2715	electrical corporations in this state; 14
2716	2716	(3) Establish an alternative resource plan or plans 15
2717	2717	that shall be included in an electrical corporation's 16
2718	2718	integrated resource plan filing pursuant to subsection 3 of 17
2719	2719	this section, and the factors that each electrical 18
2720	2720	corporation may take into account in developing such plans, 19
2721	2721	including, but not limited to, all of the following: 20
2722	2722	(a) Projected planning reserve ma rgins and local 21
2723	2723	clearing requirements and the environmental regulations, 22
2724	2724	laws, or rules pursuant to subdivisions (1) and (2) of this 23
2725	2725	subsection, respectively; 24
2726	2726	(b) Projections of future loads including both energy 25
2727	2727	and capacity over the planning pe riod; 26
2728	2728	(c) The supply-side and demand-side resources that may 27
2729	2729	reasonably address any need for additional energy and 28 SB 214 87
2730	2730	capacity, including but not limited to, the type of 29
2731	2731	generation technology for any proposed generation facility, 30
2732	2732	projected load impact due to electrification or economic 31
2733	2733	development projects, and projected load management and 32
2734	2734	demand response savings; 33
2735	2735	(d) The projected cost of different types of 34
2736	2736	technologies and fuel used for electric generation; and 35
2737	2737	(e) Any other factors the commission may order to be 36
2738	2738	considered; 37
2739	2739	(4) Identify or designate any software, data 38
2740	2740	standards, and formatting to be used in modeling the 39
2741	2741	alternative resource plan or plans pursuant to subdivision 40
2742	2742	(3) of this subsection; 41
2743	2743	(5) Complete such proceeding no less than eighteen 42
2744	2744	months prior to the first integrated resource plan filing 43
2745	2745	pursuant to subsection 2 of this section. 44
2746	2746	2. Not later than August 28, 2027, the commission 45
2747	2747	shall publish a schedule for electrical corporations to file 46
2748	2748	an integrated resource plan every four years, with the first 47
2749	2749	integrated resource plan or plans filing to occur not before 48
2750	2750	the first day of the nineteenth month after publication of 49
2751	2751	such schedule. Each electrical corporation shall, pursuant 50
2752	2752	to the published schedule, file with the commission an 51
2753	2753	integrated resource plan that includes an alternative 52
2754	2754	resource plan or plans meeting the requirements of 53
2755	2755	subdivision (3) of subsection 1 of this section, and such 54
2756	2756	other alternative resource plans as the elec trical 55
2757	2757	corporation deems appropriate. All alternative resource 56
2758	2758	plans shall cover a minimum sixteen -year planning horizon. 57
2759	2759	All such plans shall reflect projections of an electrical 58
2760	2760	corporation's load obligations and how under each such plan 59
2761	2761	the electrical corporation would reliably meet its projected 60 SB 214 88
2762	2762	load obligations over such periods consistent with 61
2763	2763	applicable planning reserve margins, local clearing 62
2764	2764	requirements, and applicable state and federal environmental 63
2765	2765	regulations, laws, or rules. 64
2766	2766	3. Without limiting the requirements set forth in 65
2767	2767	subsection 2 of this section, an electrical corporation's 66
2768	2768	integrated resource plan filing shall include: 67
2769	2769	(1) Information regarding generating units in the 68
2770	2770	electrical corporation's existing portfolio , including, but 69
2771	2771	not limited to, unit characteristics, current and expected 70
2772	2772	accredited capacity by season, licensing status, current 71
2773	2773	depreciation rates for each generating unit, currently 72
2774	2774	expected retirement dates and, if applicable, any remaining 73
2775	2775	useful life of each generating unit, and identification of 74
2776	2776	potential capital projects that are reasonably expected to 75
2777	2777	result in the extension of the retirement date of each 76
2778	2778	generating unit; 77
2779	2779	(2) Plans for meeting current and future generation 78
2780	2780	attribute needs, with estimates of the capital and operating 79
2781	2781	and maintenance costs over the planning horizon for all 80
2782	2782	proposed construction and major investments in new 81
2783	2783	generating units, including costs associated with 82
2784	2784	transmission or distribution infrastructu re that would be 83
2785	2785	required to integrate such investments into the electrical 84
2786	2786	corporation's system; 85
2787	2787	(3) Identification of the generation attribute 86
2788	2788	necessary for the provision of safe and adequate service at 87
2789	2789	just and reasonable rates; 88
2790	2790	(4) Analysis of the cost, performance, expected 89
2791	2791	accredited capacity by season, and viability of all 90
2792	2792	reasonable options available to meet projected generation 91
2793	2793	attribute needs, including, but not limited to, existing 92 SB 214 89
2794	2794	electric generation facilities, and an explan ation why an 93
2795	2795	electrical corporation selected the options outlined in the 94
2796	2796	plan; 95
2797	2797	(5) Analysis of alternative resource plans to test 96
2798	2798	risk factors identified by the electrical corporation; 97
2799	2799	(6) An explanation of how the electrical corporation 98
2800	2800	uses capacity expansion optimization software for the 99
2801	2801	development of alternative resource plans; 100
2802	2802	(7) Projections of rate impacts including rate impacts 101
2803	2803	from fuel costs of the top four alternative resource plans 102
2804	2804	including the preferred plan for the p eriods covered by the 103
2805	2805	plan; 104
2806	2806	(8) Forecasts of the electrical corporation's sales by 105
2807	2807	hour under reasonable scenarios; 106
2808	2808	(9) The types of generation technologies proposed for 107
2809	2809	generation facilities contained in the plans and the 108
2810	2810	proposed accredited capacity of the generation facilities as 109
2811	2811	estimated by the corporation and the relevant regional 110
2812	2812	transmission organization or independent system operator, 111
2813	2813	including projected fuel costs under reasonable scenarios; 112
2814	2814	(10) An analysis of potential n ew or upgraded electric 113
2815	2815	transmission and distribution options for the electrical 114
2816	2816	corporation; 115
2817	2817	(11) Analysis of the projected firm gas transportation 116
2818	2818	contracts or natural gas storage the electrical corporation 117
2819	2819	will hold to provide an adequate supp ly of fuel to new 118
2820	2820	generation facilities; 119
2821	2821	(12) Projected load management, demand response 120
2822	2822	impact, and peak demand reduction for the electrical 121
2823	2823	corporation, including but not limited to, the magnitude of 122
2824	2824	expected load impacts during the anticipated hours, seasons, 123
2825	2825	and years and the projected costs for such plans; 124 SB 214 90
2826	2826	(13) An explanation of how the electrical corporation 125
2827	2827	will comply with all applicable state and federal 126
2828	2828	environmental regulations, laws, and rules, and the 127
2829	2829	projected costs of comp lying with those regulations, laws, 128
2830	2830	and rules; 129
2831	2831	(14) Expected resource planning and system impacts of 130
2832	2832	draft programs and mechanisms associated with new load, 131
2833	2833	reduced load, or retained load associated with economic 132
2834	2834	development rates or riders and p rograms offered in 133
2835	2835	accordance with section 393.1075, as well as other programs 134
2836	2836	offered under current law; 135
2837	2837	(15) Results from a request for information or 136
2838	2838	proposals to provide any new supply -side resources needed to 137
2839	2839	serve the corporation's projecte d electric load, applicable 138
2840	2840	planning reserve margin, and local clearing requirement 139
2841	2841	during the initial four -year planning period. The request 140
2842	2842	for information or proposals may define qualifying 141
2843	2843	performance standards, contract terms, technical competenc e, 142
2844	2844	capability, reliability, creditworthiness, past performance, 143
2845	2845	and other criteria that responses or respondents to the 144
2846	2846	request for information shall meet in order to be considered 145
2847	2847	by the corporation in its integrated resource plan. 146
2848	2848	Respondents to a request for information or proposals may 147
2849	2849	request that certain proprietary information be treated as 148
2850	2850	confidential or highly confidential pursuant to the 149
2851	2851	commission's governing rules. A corporation that issues a 150
2852	2852	request for information or proposals unde r this subsection 151
2853	2853	shall use the resulting information or proposals to inform 152
2854	2854	its integrated resource plan and include all of the 153
2855	2855	submitted information or proposals as attachments to its 154
2856	2856	integrated resource plan filing; 155
2857	2857	(16) Selection of a preferr ed resource plan; 156 SB 214 91
2858	2858	(17) Delineation of an implementation plan covering a 157
2859	2859	four-year implementation period ending three hundred sixty - 158
2860	2860	five days after the electrical corporation's next -scheduled 159
2861	2861	quadrennial integrated resource plan filing, which shall 160
2862	2862	specify the construction or acquisition by the utility of 161
2863	2863	specific supply-side resources or a specified quantity of 162
2864	2864	supply-side resources by supply -side resource type, or both, 163
2865	2865	for which construction or acquisition is planned to commence 164
2866	2866	within said four-year implementation period; and 165
2867	2867	(18) Any other information that the commission may 166
2868	2868	specify by rule. 167
2869	2869	4. The commission shall, after a hearing is conducted, 168
2870	2870	issue a report and order no later than three hundred sixty 169
2871	2871	days after the electri cal corporation files an integrated 170
2872	2872	resource plan under this section, unless the commission 171
2873	2873	grants itself an extension for good cause for the issuance 172
2874	2874	of the report and order. Up to one hundred fifty days after 173
2875	2875	an electrical corporation makes its init ial integrated 174
2876	2876	resource plan filing, the electrical corporation may file an 175
2877	2877	update of the cost estimates provided under subdivision (2) 176
2878	2878	of subsection 3 of this section if the cost estimates have 177
2879	2879	materially changed. An electrical corporation shall not 178
2880	2880	modify any other aspect of the initial integrated resource 179
2881	2881	plan filing unless the commission grants the electrical 180
2882	2882	corporation the ability to do so. The commission's report 181
2883	2883	and order shall determine whether the electrical corporation 182
2884	2884	has submitted sufficient documentation and selected a 183
2885	2885	preferred resource plan that represents a reasonable and 184
2886	2886	prudent means of meeting the electrical corporation's load 185
2887	2887	serving obligations at just and reasonable rates. In making 186
2888	2888	the determination, the commission sha ll consider whether the 187
2889	2889	plan appropriately balances all of the following factors: 188 SB 214 92
2890	2890	(a) Resource adequacy to serve anticipated peak 189
2891	2891	electric load and seasonal peak demand forecasts, applicable 190
2892	2892	planning reserve margin, local clearing requirements, an d 191
2893	2893	the role of energy and capacity markets; 192
2894	2894	(b) Reliability; 193
2895	2895	(c) Rate impacts; 194
2896	2896	(d) Overall cost-effectiveness in providing service; 195
2897	2897	(e) Commodity price risks; 196
2898	2898	(f) Diversity of supply-side resources; 197
2899	2899	(g) Competitive pricing; 198
2900	2900	(h) Participation in regional transmission 199
2901	2901	organization markets; and 200
2902	2902	(i) Compliance with applicable state and federal 201
2903	2903	environmental regulations. 202
2904	2904	5. (1) If the commission determines that the 203
2905	2905	preferred resource plan is a reasonabl e and prudent means of 204
2906	2906	meeting the electrical corporation's load serving 205
2907	2907	obligations, such determination shall constitute the 206
2908	2908	commission's permission for the electrical corporation to 207
2909	2909	construct or acquire the specified supply -side resources, or 208
2910	2910	a specified quantity of supply -side resources by supply -side 209
2911	2911	resource type, or both, that were reflected in the 210
2912	2912	implementation plan submitted under subdivision (15) of 211
2913	2913	subsection 3 of this section, provided that construction 212
2914	2914	commences or the acquisition agre ement is executed within 213
2915	2915	the four-year implementation period. With respect to such 214
2916	2916	resources, when the electrical corporation files an 215
2917	2917	application for a certificate of convenience and necessity 216
2918	2918	to authorize construction or acquisition of such resource or 217
2919	2919	resources pursuant to subsection 1 of section 393.170, the 218
2920	2920	commission shall be deemed to have determined that the 219
2921	2921	supply-side resources for which such a determination was 220 SB 214 93
2922	2922	made are necessary or convenient for the public interest. 221
2923	2923	In such a certificate of convenience and necessity 222
2924	2924	proceeding, the commission's inquiry shall be limited to 223
2925	2925	considering the electrical corporation's qualifications to 224
2926	2926	construct and operate the resources, the electrical 225
2927	2927	corporation's ability to finance the construction or 226
2928	2928	acquisition of the resources, and siting considerations. 227
2929	2929	The commission shall take all reasonable steps to expedite 228
2930	2930	such a certificate of convenience and necessity proceeding 229
2931	2931	and shall issue its decision in such a proceeding within one 230
2932	2932	hundred twenty days of the date that the electrical 231
2933	2933	corporation files its application. An electrical 232
2934	2934	corporation shall annually, or more frequently if required 233
2935	2935	by the commission, report to the commission the status of 234
2936	2936	supply-side resources being implemented duri ng the 235
2937	2937	implementation period. 236
2938	2938	(2) If the commission determines that the preferred 237
2939	2939	resource plan, in whole or in part, is not a reasonable and 238
2940	2940	prudent means of meeting the electrical corporation's load 239
2941	2941	serving obligations, the commission shall hav e the authority 240
2942	2942	to specify in its report and order the deficiencies in the 241
2943	2943	preferred resource plan and may require the electrical 242
2944	2944	corporation to make a further filing within sixty days after 243
2945	2945	issuance of the report and order addressing the deficiencies 244
2946	2946	and the electrical corporation may propose modifications to 245
2947	2947	its original preferred resource plan. If such an order 246
2948	2948	requiring a further filing by the electrical corporation is 247
2949	2949	issued, the commission's report and order issued under this 248
2950	2950	subsection shall not be final for purposes of rehearing 249
2951	2951	pursuant to section 386.500 or an appeal pursuant to section 250
2952	2952	386.510. Other parties to the integrated resource plan 251
2953	2953	docket shall have sixty days to respond to the electrical 252 SB 214 94
2954	2954	corporation's further filing, unless the commission grants 253
2955	2955	an extension for good cause to respond to the electrical 254
2956	2956	corporation's further filing. Within sixty days after the 255
2957	2957	deadline for such other parties' filings, the commission 256
2958	2958	shall issue a report and order, which shall be final for 257
2959	2959	purposes of rehearing pursuant to section 386.500, and 258
2960	2960	appeal pursuant to section 386.510, indicating whether the 259
2961	2961	deficiencies have been cured by the electrical corporation's 260
2962	2962	further filing and the commission may approve the electrical 261
2963	2963	corporation's modified preferred resource plan and may 262
2964	2964	approve specific supply -side resources, or a specified 263
2965	2965	quantity of supply-side resources by supply -side resource 264
2966	2966	type, or both. If the commission finds continued 265
2967	2967	deficiencies in the electrical corporation's modi fied 266
2968	2968	preferred resource plan: 267
2969	2969	(a) The commission may initiate a complaint proceeding 268
2970	2970	pursuant to the provisions of section 393.270; 269
2971	2971	(b) The electrical corporation shall not be eligible 270
2972	2972	for a limited inquiry in any proceeding under section 271
2973	2973	393.170 as set forth in subdivision (1) of this subsection 272
2974	2974	for any resource additions not approved by the commission; 273
2975	2975	and 274
2976	2976	(c) The electrical corporation shall not be eligible 275
2977	2977	for construction work in progress as set forth in 276
2978	2978	subdivision (3) of thi s subsection for any resource 277
2979	2979	additions not approved by the commission. 278
2980	2980	(3) Notwithstanding section 393.135 to the contrary, 279
2981	2981	if approved in a proceeding granting permission and approval 280
2982	2982	under subsection 1 of section 393.170, an electrical 281
2983	2983	corporation may be permitted to include in the corporation's 282
2984	2984	rate base any amounts recorded to construction work in 283
2985	2985	progress for the investments for which permission is given 284 SB 214 95
2986	2986	under subdivision (1) of subsection 5 of this section. The 285
2987	2987	inclusion of constructio n work in progress shall be in lieu 286
2988	2988	of any otherwise applicable allowance for funds used during 287
2989	2989	construction that would have accrued from and after the 288
2990	2990	effective date of new base rates that reflect inclusion of 289
2991	2991	the construction work in progress in rate base. The 290
2992	2992	commission shall determine, in a proceeding under section 291
2993	2993	393.170, the amount of construction work in progress that 292
2994	2994	may be included in rate base. The amount shall be limited 293
2995	2995	by: 294
2996	2996	(a) The estimated cost of such project; and 295
2997	2997	(b) Project expenditures made within the estimated 296
2998	2998	construction period for such project. Base rate recoveries 297
2999	2999	arising from inclusion of construction work in progress in 298
3000	3000	base rates are subject to refund, together with interest on 299
3001	3001	the refunded amount at the same rate as the rate of interest 300
3002	3002	for delinquent taxes determined by the director of revenue 301
3003	3003	in accordance with section 32.065, if and to the extent the 302
3004	3004	commission determines, in a subsequent complaint or general 303
3005	3005	rate proceeding, that construction cost s giving rise to the 304
3006	3006	construction work in progress included in rate base were 305
3007	3007	imprudently incurred. Return deferred under subdivision (2) 306
3008	3008	of subsection 3 of section 393.1400 for plant that has been 307
3009	3009	included in base rates as construction work in progre ss 308
3010	3010	shall offset the amounts deferred under section 393.1400. 309
3011	3011	6. The commission shall promulgate rules necessary to 310
3012	3012	implement the provisions of this section. Any rule or 311
3013	3013	portion of a rule, as that term is defined in section 312
3014	3014	536.010, that is creat ed under the authority delegated in 313
3015	3015	this section shall become effective only if it complies with 314
3016	3016	and is subject to all of the provisions of chapter 536 and, 315
3017	3017	if applicable, section 536.028. This section and chapter 316 SB 214 96
3018	3018	536 are nonseverable and if any of th e powers vested with 317
3019	3019	the general assembly pursuant to chapter 536 to review, to 318
3020	3020	delay the effective date, or to disapprove and annul a rule 319
3021	3021	are subsequently held unconstitutional, then the grant of 320
3022	3022	rulemaking authority and any rule proposed or adopted after 321
3023	3023	August 28, 2025, shall be invalid and void. 322
3024	3024	7. As used in this section, the following terms shall 323
3025	3025	mean: 324
3026	3026	(1) "Firm gas transportation", an anticipated 325
3027	3027	agreement entered into between the electrical corporation 326
3028	3028	and a natural gas transmis sion provider for a set period of 327
3029	3029	time to provide firm delivery of natural gas to an electric 328
3030	3030	generation facility; 329
3031	3031	(2) "Generation attribute", the capacity, energy, and 330
3032	3032	other generating unit capabilities used in regional energy 331
3033	3033	and capacity markets to differentiate services that can be 332
3034	3034	provided by various types of generating units. 333
3035	3035	523.010. 1. In case land, or other property, is 1
3036	3036	sought to be appropriated by any road, railroad, street 2
3037	3037	railway, telephone, telegraph or any ele ctrical corporation 3
3038	3038	organized for the manufacture or transmission of electric 4
3039	3039	current for light, heat or power, including the 5
3040	3040	construction, when that is the case, of necessary dams and 6
3041	3041	appurtenant canals, flumes, tunnels and tailraces and 7
3042	3042	including the erection, when that is the case, of necessary 8
3043	3043	electric steam powerhouses, hydroelectric powerhouses and 9
3044	3044	electric substations or any oil, pipeline or gas corporation 10
3045	3045	engaged in the business of transporting or carrying oil, 11
3046	3046	liquid fertilizer solutions, or gas by means of pipes or 12
3047	3047	pipelines laid underneath the surface of the ground, or 13
3048	3048	other corporation created under the laws of this state for 14
3049	3049	public use, and such corporation and the owners cannot agree 15 SB 214 97
3050	3050	upon the proper compensation to be paid, or in the case the 16
3051	3051	owner is incapable of contracting, be unknown, or be a 17
3052	3052	nonresident of the state, such corporation may apply to the 18
3053	3053	circuit court of the county of this state where such land or 19
3054	3054	any part thereof lies by petition setting forth the general 20
3055	3055	directions in which it is desired to construct its road, 21
3056	3056	railroad, street railway, telephone, or telegraph line or 22
3057	3057	electric line, including, when that is the case, the 23
3058	3058	construction and maintenance of necessary dams and 24
3059	3059	appurtenant canals, tunnels, flumes and tailraces and, when 25
3060	3060	that is the case, the appropriation of land submerged by the 26
3061	3061	construction of such dam, and including the erection and 27
3062	3062	maintenance, when that is the case, of necessary electric 28
3063	3063	steam powerhouses, hydroelectric powerhouses and el ectric 29
3064	3064	substations, or oil, pipeline, liquid fertilizer solution 30
3065	3065	pipeline, or gas line over or underneath the surface of such 31
3066	3066	lands, a description of the real estate, or other property, 32
3067	3067	which the company seeks to acquire; the names of the owners 33
3068	3068	thereof, if known; or if unknown, a pertinent description of 34
3069	3069	the property whose owners are unknown and praying the 35
3070	3070	appointment of three disinterested residents of the county, 36
3071	3071	as commissioners, or a jury, to assess the damages which 37
3072	3072	such owners may severally sustain in consequence of the 38
3073	3073	establishment, erection and maintenance of such road, 39
3074	3074	railroad, street railway, telephone, telegraph line, or 40
3075	3075	electrical line including damages from the construction and 41
3076	3076	maintenance of necessary dams and the condemnation of land 42
3077	3077	submerged thereby, and the construction and maintenance of 43
3078	3078	appurtenant canals, flumes, tunnels and tailraces and the 44
3079	3079	erection and maintenance of necessary electric steam 45
3080	3080	powerhouses, hydroelectric powerhouses and electric 46
3081	3081	substations, or oil, pipeline, or gas line over or 47 SB 214 98
3082	3082	underneath the surface of such lands; to which petition the 48
3083	3083	owners of any or all as the plaintiff may elect of such 49
3084	3084	parcels as lie within the county or circuit may be made 50
3085	3085	parties defendant by names if the names are known, and by 51
3086	3086	the description of the unknown owners of the land therein 52
3087	3087	described if their names are unknown. 53
3088	3088	2. If the proceedings seek to affect the lands of 54
3089	3089	persons under conservatorship, the conservators must be made 55
3090	3090	parties defendant. If the present owner of any land to be 56
3091	3091	affected has less estate than a fee, the person having the 57
3092	3092	next vested estate in remainder may at the option of the 58
3093	3093	petitioners be made party defendant; but if such 59
3094	3094	remaindermen are not made parties, their interest shall not 60
3095	3095	be bound by the proceedings. 61
3096	3096	3. It shall not be necessary to make any persons party 62
3097	3097	defendants in respect to their ownership unless they are 63
3098	3098	either in actual possession of the premises to be affected 64
3099	3099	claiming title or having a title of the premi ses appearing 65
3100	3100	of record upon the proper records of the county. 66
3101	3101	4. Except as provided in subsection 5 of this section, 67
3102	3102	nothing in this chapter shall be construed to give a public 68
3103	3103	utility, as defined in section 386.020, or a rural electric 69
3104	3104	cooperative, as provided in chapter 394, the power to 70
3105	3105	condemn property which is currently used by another provider 71
3106	3106	of public utility service, including a municipality or a 72
3107	3107	special purpose district, when such property is used or 73
3108	3108	useful in providing utility serv ices, if the public utility 74
3109	3109	or cooperative seeking to condemn such property, directly or 75
3110	3110	indirectly, will use or proposes to use the property for the 76
3111	3111	same purpose, or a purpose substantially similar to the 77
3112	3112	purpose for which the property is being used b y the provider 78
3113	3113	of the public utility service. 79 SB 214 99
3114	3114	5. A public utility or a rural electric cooperative 80
3115	3115	may only condemn the property of another provider of public 81
3116	3116	utility service, even if the property is used or useful in 82
3117	3117	providing utility services by such provider, if the 83
3118	3118	condemnation is necessary for the public purpose of 84
3119	3119	acquiring a nonexclusive easement or right -of-way across the 85
3120	3120	property of such provider and only if the acquisition will 86
3121	3121	not materially impair or interfere with the current use o f 87
3122	3122	such property by the utility or cooperative and will not 88
3123	3123	prevent or materially impair such provider of public utility 89
3124	3124	service from any future expansion of its facilities on such 90
3125	3125	property. 91
3126	3126	6. If a public utility or rural electric cooperative 92
3127	3127	seeks to condemn the property of another provider of public 93
3128	3128	utility service, and the conditions in subsection 4 of this 94
3129	3129	section do not apply, this section does not limit the 95
3130	3130	condemnation powers otherwise possessed by such public 96
3131	3131	utility or rural electric cooperative. 97
3132	3132	7. Suits in inverse condemnation or involving 98
3133	3133	dangerous conditions of public property against a municipal 99
3134	3134	corporation established under Article VI, Section 30(a) of 100
3135	3135	the Missouri Constitution shall be brought only in the 101
3136	3136	county where such land or any part thereof lies. 102
3137	3137	8. For purposes of this chapter, the authority for an 103
3138	3138	electrical corporation as defined in section 386.020, except 104
3139	3139	for an electrical corporation operating under a cooperative 105
3140	3140	business plan as described in secti on 393.110, to condemn 106
3141	3141	property for purposes of constructing an electric plant 107
3142	3142	subject to a certificate of public convenience and necessity 108
3143	3143	under subsection 1 of section 393.170 shall not extend to 109
3144	3144	the construction of a merchant transmission line with 110
3145	3145	Federal Energy Regulatory Commission negotiated rate 111 SB 214 100
3146	3146	authority unless such line has a substation or converter 112
3147	3147	station located in Missouri which is capable of delivering 113
3148	3148	an amount of its electrical capacity to electrical customers 114
3149	3149	in this state that is greater than or equal to the 115
3150	3150	proportionate number of miles of the line that passes 116
3151	3151	through the state. The provisions of this subsection shall 117
3152	3152	not apply to applications filed pursuant to section 393.170 118
3153	3153	prior to August 28, 2022. 119
3154	3154	9. For the purposes of this chapter, the authority of 120
3155	3155	any corporation set forth in subsection 1 of this section to 121
3156	3156	condemn property shall not extend to: 122
3157	3157	(1) The construction or erection of any plant, tower, 123
3158	3158	panel, or facility that utilizes, captures, or converts wind 124
3159	3159	or air currents to generate or manufacture electricity; or 125
3160	3160	(2) The construction or erection of any plant, tower, 126
3161	3161	panel, or facility that utilizes, captures, or converts the 127
3162	3162	light or heat generated by the sun to generate or 128
3163	3163	manufacture electricity. 129
3164	3164	10. Subject to the provisions of subsection 8 of this 130
3165	3165	section, but notwithstanding the provisions of subsection 9 131
3166	3166	of this section to the contrary, the authority of any 132
3167	3167	corporation set forth in subsection 1 of this section to 133
3168	3168	condemn property shall extend to acquisition of rights 134
3169	3169	needed to construct, operate, and maintain collection lines, 135
3170	3170	distribution lines, transmission lines, communications 136
3171	3171	lines, substations, switchyards, and other facilities needed 137
3172	3172	to collect and deliver energy gen erated or manufactured by 138
3173	3173	the facilities described in subsection 9 of this section to 139
3174	3174	the distribution or transmission grid. 140
3175	3175	