EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE BILL NO. 214
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR TRENT.
0086S.05I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 137.010, 137.080, 137.115, 137.122, 204.300, 204.610, 393.135, 393.150,
393.320, 393.1030, 393.1506, 393.1700, and 523.010, RSMo, and to enact in lieu
thereof sixteen new sections relating to utilities.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 137.010, 137.080, 137.115, 137.122, 1
204.300, 204.6 10, 393.135, 393.150, 393.320, 393.1030, 2
393.1506, 393.1700, and 523.010, RSMo, are repealed and sixteen 3
new sections enacted in lieu thereof, to be known as sections 4
137.010, 137.077, 137.080, 137.115, 137.122, 204.300, 204.610, 5
393.135, 393.150, 393.320, 393.1030, 393.1506, 393.1645, 6
393.1700, 393.1900, and 523.010, to read as follows:7
137.010. The following words, terms and phrases when 1
used in laws governing taxation and revenue in the state of 2
Missouri shall have the meanings ascribed to them in this 3
section, except when the context clearly indicates a 4
different meaning: 5
(1) "Grain and other agricultural crops in an 6
unmanufactured condition" shall mean grains and feeds 7
including, but not limited to, soybeans, cow peas, wheat, 8
corn, oats, barley, kafir, rye, flax, grain sorghums, 9
cotton, and such other products as are usually stored in 10
grain and other elevators and on farms; but excluding such 11
grains and other agricultural crops after being processed 12
into products of such processin g, when packaged or sacked. 13 SB 214 2
The term "processing" shall not include hulling, cleaning, 14
drying, grating, or polishing; 15
(2) "Hydroelectric power generating equipment", very - 16
low-head turbine generators with a nameplate generating 17
capacity of at least four hundred kilowatts but not more 18
than six hundred kilowatts and machinery and equipment used 19
directly in the production, generation, conversion, storage, 20
or conveyance of hydroelectric power to land -based devices 21
and appurtenances used in the tra nsmission of electrical 22
energy; 23
(3) "Intangible personal property", for the purpose of 24
taxation, shall include all property other than real 25
property and tangible personal property, as defined by this 26
section; 27
(4) "Real property" includes la nd itself, whether laid 28
out in town lots or otherwise, and all growing crops, 29
buildings, structures, improvements and fixtures of whatever 30
kind thereon, hydroelectric power generating equipment, the 31
installed poles used in the transmission or reception of 32
electrical energy, audio signals, video signals or similar 33
purposes, provided the owner of such installed poles is also 34
an owner of a fee simple interest, possessor of an easement, 35
holder of a license or franchise, or is the beneficiary of a 36
right-of-way dedicated for public utility purposes for the 37
underlying land; attached wires, transformers, amplifiers, 38
substations, and other such devices and appurtenances used 39
in the transmission or reception of electrical energy, audio 40
signals, video signals or similar purposes when owned by the 41
owner of the installed poles, otherwise such items are 42
considered personal property; and stationary property used 43
for transportation or storage of liquid and gaseous 44 SB 214 3
products, including, but not limited to, pet roleum products, 45
natural gas, propane or LP gas equipment, water, and sewage; 46
(5) "Reliever airport", any land and improvements, 47
exclusive of structures, on privately owned airports that 48
qualify as reliever airports under the National Plan of 49
Integrated Airport Systems that may receive federal airport 50
improvement project funds through the Federal Aviation 51
Administration; 52
(6) "Tangible personal property" includes every 53
tangible thing being the subject of ownership or part 54
ownership whether animate or inanimate, other than money, 55
and not forming part or parcel of real property as herein 56
defined, but does not include household goods, furniture, 57
wearing apparel and articles of personal use and adornment, 58
as defined by the state tax commis sion, owned and used by a 59
person in his home or dwelling place. "Tangible personal 60
property" shall include solar panels, racking systems, 61
inverters, and related solar equipment, components, 62
materials, and supplies installed at commercial solar 63
photovoltaic energy systems, as described in subdivision 64
(46) of subsection 2 of section 144.030, that were 65
constructed and producing solar energy prior to August 9, 66
2022. 67
137.077. 1. (1) Beginning January 1, 2026, for 1
purposes of assessing all real property, excluding land, or 2
tangible personal property associated with a project that 3
uses solar energy directly to generate electricity, the 4
assessor shall determine the true value in money of such 5
property, provided that all solar ener gy property built 6
prior to December 31, 2025, or with a placard output value 7
of one megawatt or less shall be considered to be de minimis 8
in value. The assessor shall request any documentation 9 SB 214 4
necessary to determine the true value in money of such 10
property. 11
(2) Notwithstanding the provisions of subdivision (1) 12
of this subsection to the contrary, the tax liability 13
actually owed for solar energy property that was built prior 14
to December 31, 2025, shall not exceed five hundred dollars 15
per megawatt. For such projects for which the land 16
associated with such project is reclassified due to the 17
project, the property tax liability incurred from such land 18
shall be included in the limit established in this 19
subdivision. 20
2. Nothing in this sect ion shall be construed to 21
prohibit an entity from engaging in a project which was 22
originally constructed utilizing financing authorized 23
pursuant to chapter 100 for construction, from engaging in 24
enhanced enterprise zone agreements under sections 135.95 0 25
to 135.973 or similar tax abatement agreements authorized 26
pursuant to state law with state or local officials, or to 27
affect any existing enhanced enterprise zone or chapter 100 28
agreements. 29
3. Notwithstanding any provision of law to the 30
contrary, no taxpayer shall be liable for property taxes not 31
paid in any tax year on property that was exempted from 32
property tax pursuant to section 137.100 during such tax 33
year. 34
4. The provisions of this section shall expire on 35
December 31, 2050. 36
137.080. Real estate and tangible personal property 1
shall be assessed annually at the assessment which commences 2
on the first day of January. For purposes of assessing and 3
taxing tangible personal property, all tangible personal 4
property shall be divided into the following subclasses: 5 SB 214 5
(1) Grain and other agricultural crops in an 6
unmanufactured condition; 7
(2) Livestock; 8
(3) Farm machinery; 9
(4) Vehicles, including recreational vehicles, but not 10
including manufactured homes, as defined in section 700.010, 11
which are actually used as dwelling units; 12
(5) Manufactured homes, as defined in section 700.010, 13
which are actually used as dwelling units; 14
(6) Motor vehicles which are eligible for registratio n 15
and are registered as historic motor vehicles under section 16
301.131; 17
(7) Solar panels, racking systems, inverters, and 18
related solar equipment, components, materials, and supplies 19
installed at commercial solar photovoltaic energy systems, 20
as described in subdivision (46) of subsection 2 of section 21
144.030, that were constructed and producing solar energy 22
prior to August 9, 2022; and 23
(8) All taxable tangible personal property not 24
included in subclass (1), subclass (2), subclass (3), 25
subclass (4), subclass (5), [or] subclass (6), or subclass 26
(7). 27
137.115. 1. All other laws to the contrary 1
notwithstanding, the assessor or the assessor's deputies in 2
all counties of this state including the City of St. Louis 3
shall annually make a list of all real and tangible personal 4
property taxable in the assessor's city, county, town or 5
district. Except as otherwise provided in subsection 3 of 6
this section and section 137.078, the assessor shall 7
annually assess all personal p roperty at thirty-three and 8
one-third percent of its true value in money as of January 9
first of each calendar year. The assessor shall annually 10 SB 214 6
assess all real property, including any new construction and 11
improvements to real property, and possessory interests in 12
real property at the percent of its true value in money set 13
in subsection 5 of this section. The true value in money of 14
any possessory interest in real property in subclass (3), 15
where such real property is on or lies within the ultimate 16
airport boundary as shown by a federal airport layout plan, 17
as defined by 14 CFR 151.5, of a commercial airport having a 18
FAR Part 139 certification and owned by a political 19
subdivision, shall be the otherwise applicable true value in 20
money of any such possessory interest in real property, less 21
the total dollar amount of costs paid by a party, other than 22
the political subdivision, towards any new construction or 23
improvements on such real property completed after January 24
1, 2008, and which are include d in the above-mentioned 25
possessory interest, regardless of the year in which such 26
costs were incurred or whether such costs were considered in 27
any prior year. The assessor shall annually assess all real 28
property in the following manner: new assessed values shall 29
be determined as of January first of each odd -numbered year 30
and shall be entered in the assessor's books; those same 31
assessed values shall apply in the following even -numbered 32
year, except for new construction and property improvements 33
which shall be valued as though they had been completed as 34
of January first of the preceding odd -numbered year. The 35
assessor may call at the office, place of doing business, or 36
residence of each person required by this chapter to list 37
property, and require the person to make a correct statement 38
of all taxable tangible personal property owned by the 39
person or under his or her care, charge or management, 40
taxable in the county. On or before January first of each 41
even-numbered year, the assessor shall p repare and submit a 42 SB 214 7
two-year assessment maintenance plan to the county governing 43
body and the state tax commission for their respective 44
approval or modification. The county governing body shall 45
approve and forward such plan or its alternative to the p lan 46
to the state tax commission by February first. If the 47
county governing body fails to forward the plan or its 48
alternative to the plan to the state tax commission by 49
February first, the assessor's plan shall be considered 50
approved by the county gov erning body. If the state tax 51
commission fails to approve a plan and if the state tax 52
commission and the assessor and the governing body of the 53
county involved are unable to resolve the differences, in 54
order to receive state cost -share funds outlined in section 55
137.750, the county or the assessor shall petition the 56
administrative hearing commission, by May first, to decide 57
all matters in dispute regarding the assessment maintenance 58
plan. Upon agreement of the parties, the matter may be 59
stayed while the parties proceed with mediation or 60
arbitration upon terms agreed to by the parties. The final 61
decision of the administrative hearing commission shall be 62
subject to judicial review in the circuit court of the 63
county involved. In the event a valuation of subclass (1) 64
real property within any county with a charter form of 65
government, or within a city not within a county, is made by 66
a computer, computer -assisted method or a computer program, 67
the burden of proof, supported by clear, convincing an d 68
cogent evidence to sustain such valuation, shall be on the 69
assessor at any hearing or appeal. In any such county, 70
unless the assessor proves otherwise, there shall be a 71
presumption that the assessment was made by a computer, 72
computer-assisted method or a computer program. Such 73 SB 214 8
evidence shall include, but shall not be limited to, the 74
following: 75
(1) The findings of the assessor based on an appraisal 76
of the property by generally accepted appraisal techniques; 77
and 78
(2) The purchase prices from sales of at least three 79
comparable properties and the address or location thereof. 80
As used in this subdivision, the word "comparable" means 81
that: 82
(a) Such sale was closed at a date relevant to the 83
property valuation; and 84
(b) Such properties are not more than one mile from 85
the site of the disputed property, except where no similar 86
properties exist within one mile of the disputed property, 87
the nearest comparable property shall be used. Such 88
property shall be within five hundred sq uare feet in size of 89
the disputed property, and resemble the disputed property in 90
age, floor plan, number of rooms, and other relevant 91
characteristics. 92
2. Assessors in each county of this state and the City 93
of St. Louis may send personal property assessment forms 94
through the mail. 95
3. The following items of personal property shall each 96
constitute separate subclasses of tangible personal property 97
and shall be assessed and valued for the purposes of 98
taxation at the following percentages of their true value in 99
money: 100
(1) Grain and other agricultural crops in an 101
unmanufactured condition, one -half of one percent; 102
(2) Livestock, twelve percent; 103
(3) Farm machinery, twelve percent; 104 SB 214 9
(4) Motor vehicles which are eligible fo r registration 105
as and are registered as historic motor vehicles pursuant to 106
section 301.131 and aircraft which are at least twenty -five 107
years old and which are used solely for noncommercial 108
purposes and are operated less than two hundred hours per 109
year or aircraft that are home built from a kit, five 110
percent; 111
(5) Poultry, twelve percent; [and] 112
(6) Tools and equipment used for pollution control and 113
tools and equipment used in retooling for the purpose of 114
introducing new product lines or u sed for making 115
improvements to existing products by any company which is 116
located in a state enterprise zone and which is identified 117
by any standard industrial classification number cited in 118
subdivision (7) of section 135.200, twenty -five percent; and 119
(7) Solar panels, racking systems, inverters, and 120
related solar equipment, components, materials, and supplies 121
installed at commercial solar photovoltaic energy systems, 122
as described in subdivision (46) of subsection 2 of section 123
144.030, that were constructed and producing solar energy 124
prior to August 9, 2022, three percent . 125
4. The person listing the property shall enter a true 126
and correct statement of the property, in a printed blank 127
prepared for that purpose. The statement, after being 128
filled out, shall be signed and either affirmed or sworn to 129
as provided in section 137.155. The list shall then be 130
delivered to the assessor. 131
5. (1) All subclasses of real property, as such 132
subclasses are established in Section 4(b) of Article X of 133
the Missouri Constitution and defined in section 137.016, 134
shall be assessed at the following percentages of true value: 135 SB 214 10
(a) For real property in subclass (1), nineteen 136
percent; 137
(b) For real property in subclass (2), twelve percent; 138
and 139
(c) For real property in subclass (3), thirty -two 140
percent. 141
(2) A taxpayer may apply to the county assessor, or, 142
if not located within a county, then the assessor of such 143
city, for the reclassification of such taxpayer's real 144
property if the use or purpose of such real property is 145
changed after such property is assessed under the provisions 146
of this chapter. If the assessor determines that such 147
property shall be reclassified, he or she shall determine 148
the assessment under this subsectio n based on the percentage 149
of the tax year that such property was classified in each 150
subclassification. 151
6. Manufactured homes, as defined in section 700.010, 152
which are actually used as dwelling units shall be assessed 153
at the same percentage of tru e value as residential real 154
property for the purpose of taxation. The percentage of 155
assessment of true value for such manufactured homes shall 156
be the same as for residential real property. If the county 157
collector cannot identify or find the manufactu red home when 158
attempting to attach the manufactured home for payment of 159
taxes owed by the manufactured home owner, the county 160
collector may request the county commission to have the 161
manufactured home removed from the tax books, and such 162
request shall be granted within thirty days after the 163
request is made; however, the removal from the tax books 164
does not remove the tax lien on the manufactured home if it 165
is later identified or found. For purposes of this section, 166
a manufactured home located in a m anufactured home rental 167 SB 214 11
park, rental community or on real estate not owned by the 168
manufactured home owner shall be considered personal 169
property. For purposes of this section, a manufactured home 170
located on real estate owned by the manufactured home ow ner 171
may be considered real property. 172
7. Each manufactured home assessed shall be considered 173
a parcel for the purpose of reimbursement pursuant to 174
section 137.750, unless the manufactured home is deemed to 175
be real estate as defined in subsection 7 of section 442.015 176
and assessed as a realty improvement to the existing real 177
estate parcel. 178
8. Any amount of tax due and owing based on the 179
assessment of a manufactured home shall be included on the 180
personal property tax statement of the manufac tured home 181
owner unless the manufactured home is deemed to be real 182
estate as defined in subsection 7 of section 442.015, in 183
which case the amount of tax due and owing on the assessment 184
of the manufactured home as a realty improvement to the 185
existing real estate parcel shall be included on the real 186
property tax statement of the real estate owner. 187
9. The assessor of each county and each city not 188
within a county shall use the trade -in value published in 189
the October issue of the National Automobil e Dealers' 190
Association Official Used Car Guide, or its successor 191
publication, as the recommended guide of information for 192
determining the true value of motor vehicles described in 193
such publication. The assessor shall not use a value that 194
is greater than the average trade -in value in determining 195
the true value of the motor vehicle without performing a 196
physical inspection of the motor vehicle. For vehicles two 197
years old or newer from a vehicle's model year, the assessor 198
may use a value other than a verage without performing a 199 SB 214 12
physical inspection of the motor vehicle. In the absence of 200
a listing for a particular motor vehicle in such 201
publication, the assessor shall use such information or 202
publications which in the assessor's judgment will fairly 203
estimate the true value in money of the motor vehicle. 204
10. Before the assessor may increase the assessed 205
valuation of any parcel of subclass (1) real property by 206
more than fifteen percent since the last assessment, 207
excluding increases due to new construction or improvements, 208
the assessor shall conduct a physical inspection of such 209
property. 210
11. If a physical inspection is required, pursuant to 211
subsection 10 of this section, the assessor shall notify the 212
property owner of that fact in wri ting and shall provide the 213
owner clear written notice of the owner's rights relating to 214
the physical inspection. If a physical inspection is 215
required, the property owner may request that an interior 216
inspection be performed during the physical inspecti on. The 217
owner shall have no less than thirty days to notify the 218
assessor of a request for an interior physical inspection. 219
12. A physical inspection, as required by subsection 220
10 of this section, shall include, but not be limited to, an 221
on-site personal observation and review of all exterior 222
portions of the land and any buildings and improvements to 223
which the inspector has or may reasonably and lawfully gain 224
external access, and shall include an observation and review 225
of the interior of any b uildings or improvements on the 226
property upon the timely request of the owner pursuant to 227
subsection 11 of this section. Mere observation of the 228
property via a drive -by inspection or the like shall not be 229
considered sufficient to constitute a physical inspection as 230
required by this section. 231 SB 214 13
13. A county or city collector may accept credit cards 232
as proper form of payment of outstanding property tax or 233
license due. No county or city collector may charge 234
surcharge for payment by credit card whi ch exceeds the fee 235
or surcharge charged by the credit card bank, processor, or 236
issuer for its service. A county or city collector may 237
accept payment by electronic transfers of funds in payment 238
of any tax or license and charge the person making such 239
payment a fee equal to the fee charged the county by the 240
bank, processor, or issuer of such electronic payment. 241
14. Any county or city not within a county in this 242
state may, by an affirmative vote of the governing body of 243
such county, opt out of th e provisions of this section and 244
sections 137.073, 138.060, and 138.100 as enacted by house 245
bill no. 1150 of the ninety -first general assembly, second 246
regular session and section 137.073 as modified by house 247
committee substitute for senate substitute f or senate 248
committee substitute for senate bill no. 960, ninety -second 249
general assembly, second regular session, for the next year 250
of the general reassessment, prior to January first of any 251
year. No county or city not within a county shall exercise 252
this opt-out provision after implementing the provisions of 253
this section and sections 137.073, 138.060, and 138.100 as 254
enacted by house bill no. 1150 of the ninety -first general 255
assembly, second regular session and section 137.073 as 256
modified by house co mmittee substitute for senate substitute 257
for senate committee substitute for senate bill no. 960, 258
ninety-second general assembly, second regular session, in a 259
year of general reassessment. For the purposes of applying 260
the provisions of this subsection , a political subdivision 261
contained within two or more counties where at least one of 262
such counties has opted out and at least one of such 263 SB 214 14
counties has not opted out shall calculate a single tax rate 264
as in effect prior to the enactment of house bill no . 1150 265
of the ninety-first general assembly, second regular 266
session. A governing body of a city not within a county or 267
a county that has opted out under the provisions of this 268
subsection may choose to implement the provisions of this 269
section and sections 137.073, 138.060, and 138.100 as 270
enacted by house bill no. 1150 of the ninety -first general 271
assembly, second regular session, and section 137.073 as 272
modified by house committee substitute for senate substitute 273
for senate committee substitute for s enate bill no. 960, 274
ninety-second general assembly, second regular session, for 275
the next year of general reassessment, by an affirmative 276
vote of the governing body prior to December thirty -first of 277
any year. 278
15. The governing body of any city of the third 279
classification with more than twenty -six thousand three 280
hundred but fewer than twenty -six thousand seven hundred 281
inhabitants located in any county that has exercised its 282
authority to opt out under subsection 14 of this section may 283
levy separate and differing tax rates for real and personal 284
property only if such city bills and collects its own 285
property taxes or satisfies the entire cost of the billing 286
and collection of such separate and differing tax rates. 287
Such separate and differing rat es shall not exceed such 288
city's tax rate ceiling. 289
16. Any portion of real property that is available as 290
reserve for strip, surface, or coal mining for minerals for 291
purposes of excavation for future use or sale to others that 292
has not been bonded a nd permitted under chapter 444 shall be 293
assessed based upon how the real property is currently being 294
used. Any information provided to a county assessor, state 295 SB 214 15
tax commission, state agency, or political subdivision 296
responsible for the administration o f tax policies shall, in 297
the performance of its duties, make available all books, 298
records, and information requested, except such books, 299
records, and information as are by law declared confidential 300
in nature, including individually identifiable informa tion 301
regarding a specific taxpayer or taxpayer's mine property. 302
For purposes of this subsection, "mine property" shall mean 303
all real property that is in use or readily available as a 304
reserve for strip, surface, or coal mining for minerals for 305
purposes of excavation for current or future use or sale to 306
others that has been bonded and permitted under chapter 444. 307
137.122. 1. As used in this section, the following 1
terms mean: 2
(1) "Business personal property", tangible persona l 3
property which is used in a trade or business or used for 4
production of income and which has a determinable life of 5
longer than one year except that supplies used by a business 6
shall also be considered business personal property, but 7
shall not include livestock, farm machinery, grain and other 8
agricultural crops in an unmanufactured condition, property 9
subject to the motor vehicle registration provisions of 10
chapter 301, property assessed under section 137.078, the 11
property of rural electric coope ratives under chapter 394, 12
or property assessed by the state tax commission under 13
chapters 151, 153, and 155, section 137.022, and sections 14
137.1000 to 137.1030; 15
(2) "Class life", the class life of property as set 16
out in the federal Modified Acce lerated Cost Recovery System 17
life tables or their successors under the Internal Revenue 18
Code as amended; 19 SB 214 16
(3) "Economic or functional obsolescence", a loss in 20
value of personal property above and beyond physical 21
deterioration and age of the proper ty. Such loss may be the 22
result of economic or functional obsolescence or both; 23
(4) "Original cost", the price the current owner, the 24
taxpayer, paid for the item without freight, installation, 25
or sales or use tax. In the case of acquisition of i tems of 26
personal property as part of an acquisition of an entity, 27
the original cost shall be the historical cost of those 28
assets remaining in place and in use and the placed -in- 29
service date shall be the date of acquisition by the entity 30
being acquired; 31
(5) "Placed in service", property is placed in service 32
when it is ready and available for a specific use, whether 33
in a business activity, an income -producing activity, a tax - 34
exempt activity, or a personal activity. Even if the 35
property is not being used, the property is in service when 36
it is ready and available for its specific use; 37
(6) "Recovery period", the period over which the 38
original cost of depreciable tangible personal property 39
shall be depreciated for property tax purposes and shall be 40
the same as the recovery period allowed for such property 41
under the Internal Revenue Code. 42
2. To establish uniformity in the assessment of 43
depreciable tangible personal property, each assessor shall 44
use the standardized schedule of depr eciation in this 45
section to determine the assessed valuation of depreciable 46
tangible personal property for the purpose of estimating the 47
value of such property subject to taxation under this 48
chapter. 49
3. For purposes of this section, and to estima te the 50
value of depreciable tangible personal property for mass 51 SB 214 17
appraisal purposes, each assessor shall value depreciable 52
tangible personal property by applying the class life and 53
recovery period to the original cost of the property 54
according to the following depreciation schedule. The 55
percentage shown for the first year shall be the percentage 56
of the original cost used for January first of the year 57
following the year of acquisition of the property, and the 58
percentage shown for each succeeding yea r shall be the 59
percentage of the original cost used for January first of 60
the respective succeeding year as follows: 61
62 Year Recovery Period in Years
63 3 5 7 10 15 20
64 1 75.00 85.00 89.29 92.50 95.00 96.25
65 2 37.50 59.50 70.16 78.62 85.50 89.03
66 3 12.50 41.65 55.13 66.83 76.95 82.35
67 4 5.00 24.99 42.88 56.81 69.25 76.18
68 5 10.00 30.63 48.07 62.32 70.46
69 6 18.38 39.33 56.09 65.18
70 7 10.00 30.59 50.19 60.29
71 8 21.85 44.29 55.77
72 9 15.00 38.38 51.31
73 10 32.48 46.85
74 11 26.57 42.38
75 12 20.67 37.92
76 13 15.00 33.46
77 14 29.00
78 15 24.54
79 16 20.08
80 17 20.00 SB 214 18
Depreciable tangible personal property in all recovery 81
periods shall continue in subsequent years to have the 82
depreciation factor last listed in the appropriate column so 83
long as it is owned or held by the taxpayer. The state tax 84
commission shall study and analyze the values established by 85
this method of assessment and in every odd -numbered year 86
make recommendations to the joint committee on tax policy 87
pertaining to any changes in this methodology, if any, that 88
are warranted. 89
4. Such estimate of value determined under this 90
section shall be presumed to be correct for the purpose of 91
determining the true value in money of the depreciable 92
tangible personal property , but such estimation may be 93
disproved by a taxpayer by substantial and persuasive 94
evidence of the true value in money under any method 95
determined by the state tax commission to be correct, 96
including, but not limited to, an appraisal of the tangible 97
personal property specifically utilizing generally accepted 98
appraisal techniques, and contained in a narrative appraisal 99
report in accordance with the Uniform Standards of 100
Professional Appraisal Practice or by proof of economic or 101
functional obsolescenc e or evidence of excessive physical 102
deterioration. For purposes of appeal of the provisions of 103
this section, the salvage or scrap value of depreciable 104
tangible personal property may only be considered if the 105
property is not in use as of the assessment date. 106
5. This section shall not apply to business personal 107
property placed in service before January 2, 2006. Nothing 108
in this section shall create a presumption as to the proper 109
method of determining the assessed valuation of business 110
personal property placed in service before January 2, 2006. 111 SB 214 19
6. The provisions of this section are not intended to 112
modify the definition of tangible personal property as 113
defined in section 137.010. 114
7. (1) As of January 1, 2026, this section shall 115
apply to all real property, placed in service at any time, 116
that is stationary property used for transportation or 117
storage of liquid and gaseous products including water, 118
sewage, and natural gas that is not propane or LP gas, but 119
not including petroleum pr oducts. 120
(2) To estimate the value of the real property 121
described in this subsection, each assessor shall value such 122
property by applying a twenty -year recovery period to the 123
original cost of the property according to the twenty -year 124
depreciation schedule set forth in subsection 3 of this 125
section. Notwithstanding subsection 5 of this section to 126
the contrary, the presumption as to the proper method of 127
determining the assessed value of such property shall apply 128
regardless of when such property w as placed in service. 129
(3) Each taxpayer owning real property described in 130
this subsection shall provide to an assessor, no later than 131
May first of the applicable tax year, the original cost and 132
year placed in service of such property summarized in a 133
format that is substantially similar to the real property 134
reporting and valuation forms contained in section 7.4 of 135
the state tax commission assessor manual (revision date 136
March 23, 2016, or any revision adopted by the state tax 137
commission thereafter). Upon the written request of the 138
assessor, such information shall be provided for each taxing 139
district within the assessor's jurisdiction. If requested 140
by the taxpayer, the assessor shall provide to the taxpayer 141
geographic information system maps in readable layers on 142
which a taxpayer may provide the information in this 143 SB 214 20
subsection. The taxpayer shall certify under penalty of 144
perjury that the information provided to the assessor 145
pursuant to this subsection is accurate to the best of its 146
knowledge. All information provided to an assessor pursuant 147
to this subsection shall be considered proprietary 148
information and shall be accessible only to the assessor and 149
the assessor's staff for internal use only. 150
204.300. 1. In all counties except counties of the 1
first classification which have a charter form of government 2
and which contain all or any portion of a city with a 3
population of three hundred fifty thousand or more 4
inhabitants, the governing body of the county, by 5
resolution, order, or ordinance, shall appoint five 6
trustees, the majority of whom shall reside within the 7
boundaries of the district. In the event the district 8
extends into any county bordering the county in which the 9
greater portion of the district li es, the presiding 10
commissioner or other chief executive officer of the 11
adjoining county shall be an additional member of the 12
appointed board of trustees. Subject to the provisions of 13
section 105.454, the trustees may be paid reasonable 14
compensation by the district for their services [; except 15
that, any compensation schedule shall be approved by 16
resolution of the board of trustees ] outside their duties as 17
trustees. Each trustee of the board may receive an 18
attendance fee not to exceed one hundred do llars for 19
attending each regularly called board meeting, or special 20
meeting, but shall not be paid for attending more than two 21
meetings in any calendar month, except that in a county of 22
the first classification, a trustee shall not be paid for 23
attending more than four meetings in any calendar month. 24
However, no trustee shall be paid more than one attendance 25 SB 214 21
fee if such trustee attends more than one board meeting in a 26
calendar week. Each trustee of the board shall be 27
reimbursed for his or her actu al expenditures in the 28
performance of his or her duties on behalf of the district . 29
The board of trustees shall be responsible for the control 30
and operation of the sewer district. The term of each board 31
member shall be five years; except that, members of the 32
governing body of the county sitting upon the board shall 33
not serve beyond the expiration of their term as members of 34
such governing body of the county. The first board of 35
trustees shall be appointed for terms ranging from one to 36
five years so as to establish one vacancy per year 37
thereafter. If the governing body of the county with the 38
right of appointment under this section fails to appoint a 39
trustee to fill a vacancy on the board within sixty days 40
after receiving written notice from the common sewer 41
district of the existence of such vacancy, then the vacancy 42
may be filled by a majority of the remaining members then in 43
office of the board of trustees of such common sewer 44
district. Subject to the provisions of section 105.454, the 45
trustees may be paid reasonable compensation by the district 46
for their services[; except that, any compensation schedule 47
shall be approved by resolution, order, or ordinance of the 48
governing body of the county. Any and all expenses incurred 49
in the performance of their duties shall be reimbursed by 50
the district] outside their duties as trustees. Each 51
trustee of the board may receive an attendance fee not to 52
exceed one hundred dollars for attending each regularly 53
called board meeting, or special meeti ng, but shall not be 54
paid for attending more than two meetings in any calendar 55
month, except that in a county of the first classification, 56
a trustee shall not be paid for attending more than four 57 SB 214 22
meetings in any calendar month. However, no trustee sha ll 58
be paid more than one attendance fee if such trustee attends 59
more than one board meeting in a calendar week. Each 60
trustee of the board shall be reimbursed for his or her 61
actual expenditures in the performance of his or her duties 62
on behalf of the district. The board of trustees shall have 63
the power to employ and fix the compensation of such staff 64
as may be necessary to discharge the business and purposes 65
of the district, including clerks, attorneys, administrative 66
assistants, and any other nec essary personnel. The board of 67
trustees shall select a treasurer, who may be either a 68
member of the board of trustees or another qualified 69
individual. The treasurer selected by the board shall give 70
such bond as may be required by the board of trustee s. The 71
board of trustees shall appoint the sewer engineer for the 72
county in which the greater part of the district lies as 73
chief engineer for the district, and the sewer engineer 74
shall have the same powers, responsibilities and duties in 75
regard to planning, construction and maintenance of the 76
sewers, and treatment facilities of the district as he now 77
has by virtue of law in regard to the sewer facilities 78
within the county for which he is elected. If there is no 79
sewer engineer in the county in whi ch the greater part of 80
the district lies, the board of trustees may employ a 81
registered professional engineer as chief engineer for the 82
district under such terms and conditions as may be necessary 83
to discharge the business and purposes of the district. The 84
provisions of this subsection shall not apply to any county 85
of the first classification which has a charter form of 86
government and which contains all or any portion of a city 87
with a population of three hundred fifty thousand or more 88
inhabitants. 89 SB 214 23
2. In any county of the first classification which has 90
a charter form of government and which contains all or any 91
portion of a city with a population of three hundred fifty 92
thousand or more inhabitants, [and in any county of the 93
first classification without a charter form of government 94
and which has a population of more than sixty -three thousand 95
seven hundred but less than seventy -five thousand,] there 96
shall be a ten-member board of trustees to consist of the 97
county executive, the mayors of t he five cities constituting 98
the largest users by flow during the previous fiscal year, 99
the mayors of three cities which are not among the five 100
largest users and who are members of the advisory board of 101
the district established pursuant to section 204.3 10, and 102
one member of the county legislature to be appointed by the 103
county executive, with the concurrence of the county 104
legislature. If the county executive does not appoint such 105
members of the county legislature to the board of trustees 106
within sixty days, the county legislature shall make the 107
appointments. The advisory board members shall be appointed 108
annually by the advisory board. In the event the district 109
extends into any county bordering the county in which the 110
greater portion of the distr ict lies, the number of members 111
on the board of trustees shall be increased to a total of 112
eleven and the presiding commissioner or county executive of 113
the adjoining county shall be an additional member of the 114
board of trustees. The trustees of a district with an 115
eleven-member board and located in two counties shall 116
receive no compensation for their services [,] but may be 117
compensated for their reasonable expenses normally incurred 118
in the performance of their duties. Each trustee of a ten - 119
member board may receive an attendance fee not to exceed one 120
hundred dollars for attending each regularly called board 121 SB 214 24
meeting, or special meeting, but shall not be paid for 122
attending more than two meetings in any calendar month. 123
However, no trustee of a ten -member board shall be paid more 124
than one attendance fee if such trustee attends more than 125
one board meeting in a calendar week. Each trustee of a ten - 126
member board shall be reimbursed for his or her actual 127
expenditures in the performance of his or her d uties on 128
behalf of the district. Subject to the provisions of 129
section 105.454, the trustees of a ten -member board may be 130
paid reasonable compensation by the district for their 131
services outside their duties as trustees. The board of 132
trustees may employ and fix the compensation of such staff 133
as may be necessary to discharge the business and purposes 134
of the district, including clerks, attorneys, administrative 135
assistants, and any other necessary personnel. The board of 136
trustees may employ and fix t he duties and compensation of 137
an administrator for the district. The administrator shall 138
be the chief executive officer of the district subject to 139
the supervision and direction of the board of trustees and 140
shall exercise the powers, responsibilities a nd duties 141
heretofore exercised by the chief engineer prior to 142
September 28, 1983. The administrator of the district may, 143
with the approval of the board of trustees, retain 144
consulting engineers for the district under such terms and 145
conditions as may be necessary to discharge the business and 146
purposes of the district. The provisions of this subsection 147
shall only apply to counties of the first classification 148
which have a charter form of government and which contain 149
all or any portion of a city with a population of three 150
hundred fifty thousand or more inhabitants. 151
204.610. 1. There shall be five trustees, appointed 1
or elected as provided for in the circuit court decree or 2 SB 214 25
amended decree of incorporation for a reorganized common 3
sewer district, who shall reside within the boundaries of 4
the district. Each trustee shall be a voter of the district 5
and shall have resided in said district for twelve months 6
immediately prior to the trustee's election or appointment. 7
A trustee shall be at least twenty -five years of age and 8
shall not be delinquent in the payment of taxes at the time 9
of the trustee's election or appointment. Regardless of 10
whether or not the trustees are elected or appointed, in the 11
event the district extends in to any county bordering the 12
county in which the greater portion of the district lies, 13
the presiding commissioner or other chief executive officer 14
of the adjoining county shall be an additional member of the 15
board of trustees, or the governing body of s uch bordering 16
county may appoint a citizen from such county to serve as an 17
additional member of the board of trustees. Said additional 18
trustee shall meet the qualifications set forth in this 19
section for a trustee. 20
2. [The trustees shall receive no compensation for 21
their services but may be compensated for reasonable 22
expenses normally incurred in the performance of their 23
duties.] Each trustee of the board may receive an attendance 24
fee not to exceed one hundred dollars for attending each 25
regularly called board meeting, or special meeting, but 26
shall not be paid for attending more than two meetings in 27
any calendar month. However, no trustee shall be paid more 28
than one attendance fee if such trustee attends more than 29
one board meeting in a ca lendar week. Each trustee of the 30
board shall be reimbursed for his or her actual expenditures 31
in the performance of his or her duties on behalf of the 32
district. Subject to the provisions of section 105.454, the 33
trustees may be paid reasonable compens ation by the district 34 SB 214 26
for their services outside their duties as trustees. The 35
board of trustees may employ and fix the compensation of 36
such staff as may be necessary to discharge the business and 37
purposes of the district, including clerks, attorneys, 38
administrative assistants, and any other necessary 39
personnel. The board of trustees may employ and fix the 40
duties and compensation of an administrator for the 41
district. The administrator shall be the chief executive 42
officer of the district subject to the supervision and 43
direction of the board of trustees. The administrator of 44
the district may, with the approval of the board of 45
trustees, retain consulting engineers for the district under 46
such terms and conditions as may be necessary to discharge 47
the business and purposes of the district. 48
3. Except as provided in subsection 1 of this section, 49
the term of office of a trustee shall be five years. The 50
remaining trustees shall appoint a person qualified under 51
this section to fill any vacanc y on the board. The initial 52
trustees appointed by the circuit court shall serve until 53
the first Tuesday after the first Monday in June or until 54
the first Tuesday after the first Monday in April, depending 55
upon the resolution of the trustees. In the event that the 56
trustees are elected, said elections shall be conducted by 57
the appropriate election authority under chapter 115. 58
Otherwise, trustees shall be appointed by the county 59
commission in accordance with the qualifications set forth 60
in subsection 1 of this section. 61
4. Notwithstanding any other provision of law, if 62
there is only one candidate for the post of trustee, then no 63
election shall be held, and the candidate shall assume the 64
responsibilities of office at the same time and in the same 65
manner as if elected. If there is no candidate for the post 66 SB 214 27
of trustee, then no election shall be held for that post and 67
it shall be considered vacant, to be filled under the 68
provisions of subsection 3 of this section. 69
393.135. 1. Except as provided in subsection 2 of 1
this section, any charge made or demanded by an electrical 2
corporation for service, or in connection therewith, which 3
is based on the costs of construction in progress upon any 4
existing or new facility of the electrical corporation, or 5
any other cost associated with owning, operating, 6
maintaining, or financing any property before it is fully 7
operational and used for service, is unjust and 8
unreasonable, and is prohibited. 9
2. (1) An electrical corpora tion shall be permitted, 10
subject to the limitations provided for in this subsection, 11
to include any amounts recorded to construction work in 12
progress for any new natural gas generating unit in the 13
corporation's ratemaking rate base. The inclusion of 14
construction work in progress allowed under this subsection 15
shall be in lieu of any otherwise applicable allowance for 16
funds used during construction that would have accrued from 17
and after the effective date of new base rates that reflect 18
inclusion of the construction work in progress in rate 19
base. The commission shall determine, in a proceeding under 20
section 393.170, the amount of construction work in progress 21
that may be included in rate base. The amount shall be 22
limited by: 23
(a) The estimated cost of such project; and 24
(b) Project expenditures made within the estimated 25
construction period for such project. 26
Base rate recoveries arising from inclusion of construction 27
work in progress in base rates are subject to refund, 28 SB 214 28
together with interest on the refunded amount at the same 29
rate as the rate of interest for delinquent taxes determined 30
by the director of revenue in accordance with section 31
32.065, if and to the extent the commission determines, in a 32
subsequent complaint or general rate proceeding, that 33
construction costs giving rise to the construction work in 34
progress included in rate base were imprudently incurred. 35
Return deferred under subdivision (2) of subsection 3 of 36
section 393.1400 for plant that has been included in ba se 37
rates as construction work in progress shall offset the 38
amounts deferred under section 393.1400. 39
(2) Provisions of this subsection shall expire on 40
December 31, 2035, unless the commission determines, after a 41
hearing conducted in 2035 upon a su bmission from an 42
electrical corporation of an application requesting an 43
extension, that good cause exists to extend the provisions 44
of this subsection through December 31, 2045. The secretary 45
of the commission shall notify the revisor of statutes when 46
the conditions set forth for the extension of this 47
subsection have been met. 48
393.150. 1. Whenever there shall be filed with the 1
commission by any gas corporation, electrical corporation, 2
water corporation or sewer corporation any s chedule stating 3
a new rate or charge, or any new form of contract or 4
agreement, or any new rule, regulation or practice relating 5
to any rate, charge or service or to any general privilege 6
or facility, the commission shall have, and it is hereby 7
given, authority, either upon complaint or upon its own 8
initiative without complaint, at once, and if it so orders 9
without answer or other formal pleading by the interested 10
gas corporation, electrical corporation, water corporation 11
or sewer corporation, but upon reasonable notice, to enter 12 SB 214 29
upon a hearing concerning the propriety of such rate, 13
charge, form of contract or agreement, rule, regulation or 14
practice, and pending such hearing and the decision thereon, 15
the commission upon filing with such schedule , and 16
delivering to the gas corporation, electrical corporation, 17
water corporation or sewer corporation affected thereby, a 18
statement in writing of its reasons for such suspension, may 19
suspend the operation of such schedule and defer the use of 20
such rate, charge, form of contract or agreement, rule, 21
regulation or practice, but not for a longer period than one 22
hundred and twenty days beyond the time when such rate, 23
charge, form of contract or agreement, rule, regulation or 24
practice would otherwise g o into effect; and after full 25
hearing, whether completed before or after the rate, charge, 26
form of contract or agreement, rule, regulation or practice 27
goes into effect, the commission may make such order in 28
reference to such rate, charge, form of contr act or 29
agreement, rule, regulation or practice as would be proper 30
in a proceeding initiated after the rate, charge, form of 31
contract or agreement, rule, regulation or practice had 32
become effective. 33
2. If any such hearing cannot be concluded withi n the 34
period of suspension, as above stated, the commission may, 35
in its discretion, extend the time of suspension for a 36
further period not exceeding six months , the last day of 37
which period shall be considered the operation of law date . 38
At any hearing involving a rate sought to be increased, the 39
burden of proof to show that the increased rate or proposed 40
increased rate is just and reasonable shall be upon the gas 41
corporation, electrical corporation, water corporation or 42
sewer corporation, and the commission shall give to the 43
hearing and decision of such questions preference over all 44 SB 214 30
other questions pending before it and decide the same as 45
speedily as possible. 46
3. (1) Beginning July 1, 2026, the test year for 47
proceedings under this sectio n shall, if requested by a gas 48
corporation, water corporation, or sewer corporation, be a 49
future year consisting of the first twelve full calendar 50
months after the operation of law date determined as 51
provided in subsections 1 and 2 of this section for 52
schedules stating new base rates filed by a gas corporation, 53
water corporation, or sewer corporation under this section, 54
unless the commission makes a determination that using a 55
future test year under this section is detrimental to the 56
public interest. For ratemaking purposes, the projected 57
total rate base at the end of the future test year as 58
authorized by the commission shall be used to establish new 59
base rates. Unless otherwise ordered by the commission, new 60
base rates shall not go into effect before the first day of 61
the future test year. 62
(2) With respect to gas corporations, water 63
corporations, or sewer corporations that elect to utilize a 64
future test year and notwithstanding section 393.270 to the 65
contrary, within forty -five days of the end of the future 66
test year, such gas corporation, water corporation, or sewer 67
corporation shall update its base rates that were approved 68
by the commission in its report and order issued under 69
subsections 1 and 2 of this section to reflect the tot al 70
rate base, annualized depreciation expense, income tax 71
expense, payroll expense, employee benefits (other than 72
pensions and other post -retirement benefits) and rate case 73
expense at the end of the future test year. The total 74
ending rate base and ex pense items reflected in this update 75
shall not be greater than the total ending rate base and 76 SB 214 31
expense items approved by the commission in its report and 77
order establishing base rates. The commission and parties 78
to the case shall have sixty days to rev iew the accuracy of 79
the updated information provided by a gas corporation, water 80
corporation, or sewer corporation. The commission shall 81
order the corporation to file new tariff sheets that reflect 82
the update, unless any party who was a party to the r ate 83
case files a request for a hearing at which point the 84
commission shall suspend the filed tariffs and order a 85
procedural schedule. 86
4. A gas corporation, water corporation, or sewer 87
corporation that requests a test year under subsection 3 of 88
this section shall not recover the costs of any plant 89
investments made during the test year period under any of 90
the mechanisms provided for in sections 393.1000, 393.1003, 91
393.1006, 393.1009, 393.1012, 393.1015, 393.1500, 393.1503, 92
393.1506, or 393.1509 . 93
5. For a gas corporation, water corporation, or sewer 94
corporation that elected to use a future test year, a 95
reconciliation of the rate base at the end of the future 96
test year shall be provided to the commission within forty - 97
five days of the end of the future test year. If the actual 98
rate base is less than the rate base used to set base rates 99
in the prior general rate proceeding under subsections 1 and 100
2 of this section, and notwithstanding section 393.270 to 101
the contrary, the portion of the annual revenue requirement 102
comprising the rate base difference shall be returned to 103
customers. The revenue requirement shall be calculated 104
using rate base, depreciation expense, income tax expense, 105
and the pre-tax rate of return from the prior genera l rate 106
proceeding under subsections 1 and 2 of this section. The 107
difference in revenue requirement shall be placed into a 108 SB 214 32
regulatory liability to be returned to customers in the next 109
general rate proceeding with such regulatory liability to 110
accrue carrying costs at the utility's weighted average cost 111
of capital. 112
6. The commission may take into account any change in 113
business risk to the corporation resulting from 114
implementation of the adjustment mechanism in setting the 115
corporation's allowed return in any rate proceeding, in 116
addition to any other changes in business risk experienced 117
by the corporation. 118
7. For a gas corporation, water corporation, or sewer 119
corporation that elected to use a future test year, a 120
reconciliation of payroll expense, employee benefits except 121
for pensions and other post -retirement benefits, and rate 122
case expense at the end of the future test year shall be 123
provided to the commission within forty -five days of the end 124
of the future test year. If the actual amounts for these 125
expenses are less than the amounts used to calculate the 126
revenue requirement in the prior general rate proceeding 127
under subsections 1 and 2 of this section, and 128
notwithstanding section 393.270 to the contrary, the 129
differences shall be returned to customers. The difference 130
in revenue requirement shall be placed into a regulatory 131
liability to be returned to customers in the next general 132
rate case with such regulatory liability to accrue carrying 133
costs at the utility's weighted avera ge cost of capital. 134
8. The commission may promulgate rules to implement 135
the provisions of this section. Any rule or portion of a 136
rule, as that term is defined in section 536.010, that is 137
created under the authority delegated in this section shall 138
become effective only if it complies with and is subject to 139
all of the provisions of chapter 536 and, if applicable, 140 SB 214 33
section 536.028. This section and chapter 536 are 141
nonseverable and if any of the powers vested with the 142
general assembly pursuant to chapter 536 to review, to delay 143
the effective date, or to disapprove and annul a rule are 144
subsequently held unconstitutional, then the grant of 145
rulemaking authority and any rule proposed or adopted after 146
August 28, 2025, shall be invalid and void. 147
9. For purposes of this section, the following terms 148
shall mean: 149
(1) "Base rates", rates or charges for public utility 150
service other than rates or charges under any rate 151
adjustment mechanism including, but not limited to, those 152
approved under the provisions of sections 386.266, 393.1000, 153
393.1009, 393.1030, 393.1075, and 393.1500; 154
(2) "Revenue requirement", the amount of retail 155
revenues from base rates charged to retail customers for 156
public utility service needed for a public utility t o 157
recover its cost to provide utility service including 158
reasonable and necessary expenses, prudent investments, and 159
the cost of capital. 160
393.320. 1. As used in this section, the following 1
terms mean: 2
(1) "Large water public u tility", a public utility : 3
(a) That regularly provides water service [or sewer 4
service] to more than eight thousand customer connections , 5
regularly provides sewer service to more than eight thousand 6
customer connections, or regularly provides a c ombination of 7
either to more than eight thousand customer connections; and 8
(b) That provides safe and adequate service but shall 9
not include a sewer district established under Section 10
30(a), Article VI of the Missouri Constitution, sewer 11
districts established under the provisions of chapter 204, 12 SB 214 34
249, or 250, public water supply districts established under 13
the provisions of chapter 247, or municipalities that own 14
water or sewer systems; 15
(2) "Small water utility", a public utility that 16
regularly provides water service or sewer service to eight 17
thousand or fewer customer connections; a water district 18
established under the provisions of chapter 247 that 19
regularly provides water or sewer service to eight thousand 20
or fewer customer connect ions; a sewer district established 21
under the provisions of chapter 204, 249, or 250 that 22
regularly provides sewer service to eight thousand or fewer 23
customer connections; or a water system or sewer system 24
owned by a municipality that regularly provides water 25
service or sewer service to eight thousand or fewer customer 26
connections; and all other entities that regularly provide 27
water service or sewer service to eight thousand or fewer 28
customer connections. 29
2. The procedures contained in this sec tion may be 30
chosen by a large water public utility, and if so chosen 31
shall be used by the public service commission to establish 32
the ratemaking rate base of a small water utility during an 33
acquisition, provided that the public service commission 34
independently concludes that a certificate of convenience 35
and necessity should be granted pursuant to section 393.170, 36
unless the public service commission finds that the 37
application of this section results in rates that are unjust 38
and unreasonable. 39
3. (1) An appraisal shall be performed by three 40
appraisers. One appraiser shall be appointed by the small 41
water utility, one appraiser shall be appointed by the large 42
water public utility, and the third appraiser shall be 43
appointed by the two appraise rs so appointed. Each of the 44 SB 214 35
appraisers shall be a disinterested person who is a 45
certified general appraiser under chapter 339. 46
(2) The appraisers shall: 47
(a) Jointly prepare an appraisal of the fair market 48
value of the water system and/or s ewer system. The 49
determination of fair market value shall be in accordance 50
with Missouri law and with the Uniform Standards of 51
Professional Appraisal Practice; and 52
(b) Return their appraisal, in writing, to the small 53
water utility and large wate r public utility in a reasonable 54
and timely manner. 55
(3) If all three appraisers cannot agree as to the 56
appraised value, the appraisal, when signed by two of the 57
appraisers, constitutes a good and valid appraisal. 58
4. Nothing in this section s hall prohibit a party from 59
declining to proceed with an acquisition or be deemed as 60
establishing the final purchase price of an acquisition. 61
5. (1) The lesser of the purchase price or the 62
appraised value, together with the reasonable and prudent 63
transaction, closing, and transition costs incurred by the 64
large water public utility, shall constitute the ratemaking 65
rate base for the small water utility as acquired by the 66
acquiring large water public utility; provided, however, 67
that if the small water utility is a public utility subject 68
to chapter 386 and the small water utility completed a rate 69
case prior to the acquisition, the public service commission 70
may select as the ratemaking rate base for the small water 71
utility as acquired by the acq uiring large water public 72
utility a ratemaking rate base in between: 73
(a) The lesser of the purchase price or the appraised 74
value, together with the reasonable and prudent transaction, 75
closing, and transition costs incurred by the large water 76 SB 214 36
public utility unless such transaction, closing, and 77
transition costs are elsewhere recoverable in rates; and 78
(b) The ratemaking rate base of the small water 79
utility as ordered by the public service commission in the 80
small water utility's last previou s rate case as adjusted by 81
improvements and depreciation reserve since the previous 82
rate case together with the transaction, closing, and 83
transition costs incurred by the large water public utility 84
unless such transaction, closing, and transition costs are 85
elsewhere recoverable in rates. If the small water utility 86
and large water public utility proceed with the sale, any 87
past-due fees due to the state from the small water utility 88
or its customers under chapter 640 or 644 shall be resolved 89
prior to the transfer of ownership or the liability for such 90
past-due fees becomes the responsibility of the large water 91
public utility. Such fees shall not be included in the 92
large water public utility's rate base. 93
(2) The public service commission shal l issue its 94
decision establishing the ratemaking rate base of the small 95
water utility in its order approving the acquisition. For 96
any acquisition with an appraised value of five million 97
dollars or less, such decision shall be issued within six 98
months from the submission of the application by the large 99
public water utility to acquire the small water utility. 100
(3) Prior to the expiration of the six -month period, 101
the public service commission staff or the office of public 102
counsel may request, upo n a showing of good cause, from the 103
public service commission an extension for approval of the 104
application for an additional thirty days. 105
6. Upon the date of the acquisition of a small water 106
utility by a large water public utility, whether or not the 107
procedures for establishing ratemaking rate base provided by 108 SB 214 37
this section have been utilized, the small water utility 109
shall, for ratemaking purposes, become part of an existing 110
service area, as defined by the public service commission, 111
of the acquiring large water public utility that is either 112
contiguous to the small water utility, the closest 113
geographically to the small water utility, or best suited 114
due to operational or other factors. This consolidation 115
shall be approved by the public servic e commission in its 116
order approving the acquisition. 117
7. Any new permit issued pursuant to chapters 640 and 118
644, when a small water utility is acquired by a large water 119
public utility, shall include a plan to resolve all 120
outstanding permit complia nce issues. After the transfer of 121
ownership, the acquiring large public water utility shall 122
continue providing service to all customers that were served 123
by the small water utility at the time of sale. 124
8. This section is intended for the specific and 125
unique purpose of determining the ratemaking rate base of 126
small water utilities and shall be exclusively applied to 127
large water public utilities in the acquisition of a small 128
water utility. A large water public utility's choice to 129
comply with the provisions of this section shall not 130
automatically ensure that the transaction is in the public 131
interest. The public service commission shall independently 132
determine whether the acquisition is in the public interest, 133
regardless of whether the matter has been put to a vote of 134
the small water utility's ratepayers. This section is not 135
intended to apply beyond its specific purpose and shall not 136
be construed in any manner to apply to electric 137
corporations, natural gas corporations, or any other utilit y 138
regulated by the public service commission. 139 SB 214 38
393.1030. 1. The commission shall, in consultation 1
with the department, prescribe by rule a portfolio 2
requirement for all electric utilities to generate or 3
purchase electricity generate d from renewable energy 4
resources. Such portfolio requirement shall provide that 5
electricity from renewable energy resources shall constitute 6
the following portions of each electric utility's sales: 7
(1) No less than two percent for calendar years 2011 8
through 2013; 9
(2) No less than five percent for calendar years 2014 10
through 2017; 11
(3) No less than ten percent for calendar years 2018 12
through 2020; and 13
(4) No less than fifteen percent in each calendar year 14
beginning in 2021. 15
At least two percent of each portfolio requirement shall be 16
derived from solar energy. The portfolio requirements shall 17
apply to all power sold to Missouri consumers whether such 18
power is self-generated or purchased from another source in 19
or outside of this state. A utility may comply with the 20
standard in whole or in part by purchasing RECs. Each 21
kilowatt-hour of eligible energy generated in Missouri shall 22
count as 1.25 kilowatt -hours for purposes of compliance. 23
2. (1) This subsection appl ies to electric utilities 24
with more than two hundred fifty thousand but less than one 25
million retail customers in Missouri as of the end of 26
calendar year 2022. 27
(2) Energy meeting the criteria of the renewable 28
energy portfolio requirements set for th in subsection 1 of 29
this section that is generated from renewable energy 30 SB 214 39
resources and contracted for by an accelerated renewable 31
buyer shall: 32
(a) Have all associated renewable energy certificates 33
retired by the accelerated renewable buyer, or on their 34
behalf, and the certificates shall not be used to meet the 35
electric utility's portfolio requirements pursuant to 36
subsection 1 of this section; 37
(b) Be excluded from the total electric utility's 38
sales used to determine the portfolio requir ements pursuant 39
to subsection 1 of this section; and 40
(c) Be used to offset all or a portion of its electric 41
load for purposes of determining compliance with the 42
portfolio requirements pursuant to subsection 1 of this 43
section. 44
(3) The accelerated renewable buyer shall be exempt 45
from any renewable energy standard compliance costs as may 46
be established by the utility and approved by the 47
commission, based on the amount of renewable energy 48
certificates retired pursuant to this subsection in 49
proportion to the accelerated renewable buyer's total 50
electric energy consumption, on an annual basis. 51
(4) An "accelerated renewable buyer" means a customer 52
of an electric utility, with an aggregate load over eighty 53
average megawatts, that enters into a contract or contracts 54
to obtain: 55
(a) Renewable energy certificates from renewable 56
energy resources as defined in section 393.1025; or 57
(b) Energy and renewable energy certificates from 58
solar or wind generation resources located within the 59
Southwest Power Pool or Midcontinent Independent System 60
Operator regions and initially placed in commercial 61
operation after January 1, 2020, including any contract with 62 SB 214 40
the electric utility for such generation resources that does 63
not allocate to or recover from any other customer of the 64
utility the cost of such resources. 65
(5) Each electric utility shall certify, and verify as 66
necessary, to the commission that the accelerated renewable 67
buyer has satisfied the exemption requirements of this 68
subsection for each year, or an accelerated renewable buyer 69
may choose to certify satisfaction of this exemption by 70
reporting to the commission individually. The commission 71
may promulgate such rules and regulations as may be 72
necessary to implement th e provisions of this subsection. 73
Nothing in this section shall be construed as imposing or 74
authorizing the imposition of any reporting, regulatory, or 75
financial burden on an accelerated renewable buyer. 76
3. The commission, in consultation with the department 77
and within one year of November 4, 2008, shall select a 78
program for tracking and verifying the trading of renewable 79
energy credits. An unused credit may exist for up to three 80
years from the date of its creation. A credit may be used 81
only once to comply with sections 393.1020 to 393.1030 and 82
may not also be used to satisfy any similar nonfederal 83
requirement. An electric utility may not use a credit 84
derived from a green pricing program. Certificates from net - 85
metered sources shall init ially be owned by the customer - 86
generator. The commission, except where the department is 87
specified, shall make whatever rules are necessary to 88
enforce the renewable energy standard. Such rules shall 89
include: 90
(1) A maximum average retail rate in crease of one 91
percent determined by estimating and comparing the electric 92
utility's cost of compliance with least -cost renewable 93
generation and the cost of continuing to generate or 94 SB 214 41
purchase electricity from entirely nonrenewable sources, 95
taking into proper account future environmental regulatory 96
risk including the risk of greenhouse gas regulation. 97
Notwithstanding the foregoing, until June 30, 2020, if the 98
maximum average retail rate increase would be less than or 99
equal to one percent if an elect ric utility's investment in 100
solar-related projects initiated, owned or operated by the 101
electric utility is ignored for purposes of calculating the 102
increase, then additional solar rebates shall be paid and 103
included in rates in an amount up to the amount that would 104
produce a retail rate increase equal to the difference 105
between a one percent retail rate increase and the retail 106
rate increase calculated when ignoring an electric utility's 107
investment in solar-related projects initiated, owned, or 108
operated by the electric utility. Notwithstanding any 109
provision to the contrary in this section, even if the 110
payment of additional solar rebates will produce a maximum 111
average retail rate increase of greater than one percent 112
when an electric utility's invest ment in solar-related 113
projects initiated, owned or operated by the electric 114
utility are included in the calculation, the additional 115
solar rebate costs shall be included in the prudently 116
incurred costs to be recovered as contemplated by 117
subdivision (4) of this subsection; 118
(2) Penalties of at least twice the average market 119
value of renewable energy credits for the compliance period 120
for failure to meet the targets of subsection 1 of this 121
section. An electric utility will be excused if it proves 122
to the commission that failure was due to events beyond its 123
reasonable control that could not have been reasonably 124
mitigated, or that the maximum average retail rate increase 125
has been reached. Penalties shall not be recovered from 126 SB 214 42
customers. Amounts forfeited under this section shall be 127
remitted to the department to purchase renewable energy 128
credits needed for compliance. Any excess forfeited 129
revenues shall be used by the division of energy solely for 130
renewable energy and energy efficiency proje cts; 131
(3) Provisions for an annual report to be filed by 132
each electric utility in a format sufficient to document its 133
progress in meeting the targets; 134
(4) Provision for recovery outside the context of a 135
regular rate case of prudently incurred costs and the pass- 136
through of benefits to customers of any savings achieved by 137
an electrical corporation in meeting the requirements of 138
this section. 139
[3.] 4. As provided for in this section, except for 140
those electrical corporations that qualify for an exemption 141
under section 393.1050, each electric utility shall make 142
available to its retail customers a solar rebate for new or 143
expanded solar electric systems sited on customers' 144
premises, up to a maximum of twenty -five kilowatts per 145
system, measured in direct current that were confirmed by 146
the electric utility to have become operational in 147
compliance with the provisions of section 386.890. The 148
solar rebates shall be two dollars per watt for systems 149
becoming operational on or before June 30 , 2014; one dollar 150
and fifty cents per watt for systems becoming operational 151
between July 1, 2014, and June 30, 2015; one dollar per watt 152
for systems becoming operational between July 1, 2015, and 153
June 30, 2016; fifty cents per watt for systems becomin g 154
operational between July 1, 2016, and June 30, 2017; fifty 155
cents per watt for systems becoming operational between July 156
1, 2017, and June 30, 2019; twenty -five cents per watt for 157
systems becoming operational between July 1, 2019, and June 158 SB 214 43
30, 2020; and zero cents per watt for systems becoming 159
operational after June 30, 2020. An electric utility may, 160
through its tariffs, require applications for rebates to be 161
submitted up to one hundred eighty -two days prior to the 162
June thirtieth operational date . Nothing in this section 163
shall prevent an electrical corporation from offering 164
rebates after July 1, 2020, through an approved tariff. If 165
the electric utility determines the maximum average retail 166
rate increase provided for in subdivision (1) of sub section 167
[2] 3 of this section will be reached in any calendar year, 168
the electric utility shall be entitled to cease paying 169
rebates to the extent necessary to avoid exceeding the 170
maximum average retail rate increase if the electrical 171
corporation files with the commission to suspend its rebate 172
tariff for the remainder of that calendar year at least 173
sixty days prior to the change taking effect. The filing 174
with the commission to suspend the electrical corporation's 175
rebate tariff shall include the calc ulation reflecting that 176
the maximum average retail rate increase will be reached and 177
supporting documentation reflecting that the maximum average 178
retail rate increase will be reached. The commission shall 179
rule on the suspension filing within sixty day s of the date 180
it is filed. If the commission determines that the maximum 181
average retail rate increase will be reached, the commission 182
shall approve the tariff suspension. The electric utility 183
shall continue to process and pay applicable solar rebates 184
until a final commission ruling; however, if the continued 185
payment causes the electric utility to pay rebates that 186
cause it to exceed the maximum average retail rate increase, 187
the expenditures shall be considered prudently incurred 188
costs as contemplated by subdivision (4) of subsection [2] 3 189
of this section and shall be recoverable as such by the 190 SB 214 44
electric utility. As a condition of receiving a rebate, 191
customers shall transfer to the electric utility all right, 192
title, and interest in and to the re newable energy credits 193
associated with the new or expanded solar electric system 194
that qualified the customer for the solar rebate for a 195
period of ten years from the date the electric utility 196
confirmed that the solar electric system was installed and 197
operational. 198
[4.] 5. The department shall, in consultation with the 199
commission, establish by rule a certification process for 200
electricity generated from renewable resources and used to 201
fulfill the requirements of subsection 1 of this section. 202
Certification criteria for renewable energy generation shall 203
be determined by factors that include fuel type, technology, 204
and the environmental impacts of the generating facility. 205
Renewable energy facilities shall not cause undue adverse 206
air, water, or land use impacts, including impacts 207
associated with the gathering of generation feedstocks. If 208
any amount of fossil fuel is used with renewable energy 209
resources, only the portion of electrical output 210
attributable to renewable energy resources shall be used to 211
fulfill the portfolio requirements. 212
[5.] 6. In carrying out the provisions of this 213
section, the commission and the department shall include 214
methane generated from the anaerobic digestion of farm 215
animal waste and thermal depolymerization o r pyrolysis for 216
converting waste material to energy as renewable energy 217
resources for purposes of this section. 218
[6.] 7. The commission shall have the authority to 219
promulgate rules for the implementation of this section, but 220
only to the extent suc h rules are consistent with, and do 221
not delay the implementation of, the provisions of this 222 SB 214 45
section. Any rule or portion of a rule, as that term is 223
defined in section 536.010, that is created under the 224
authority delegated in this section shall become effective 225
only if it complies with and is subject to all of the 226
provisions of chapter 536 and, if applicable, section 227
536.028. This section and chapter 536 are nonseverable and 228
if any of the powers vested with the general assembly 229
pursuant to chapter 536 to review, to delay the effective 230
date, or to disapprove and annul a rule are subsequently 231
held unconstitutional, then the grant of rulemaking 232
authority and any rule proposed or adopted after August 28, 233
2013, shall be invalid and void. 234
393.1506. 1. Notwithstanding any provisions of 1
chapter 386 and this chapter to the contrary, a water or 2
sewer corporation that provides water [or sewer] service to 3
more than eight thousand customer connections , sewer service 4
to more than eight thousand customer connections, or a 5
combination of either to more than eight thousand customer 6
connections may file a petition and proposed rate schedules 7
with the commission to establish or change a WSIRA that will 8
provide for the recovery of the ap propriate pretax revenues 9
associated with the eligible infrastructure system projects, 10
less the appropriate pretax revenues associated with any 11
retired utility plant that is being replaced by the eligible 12
infrastructure system projects. The WSIRA shall not produce 13
revenues in excess of fifteen percent of the water or sewer 14
corporation's base revenue requirement approved by the 15
commission in the water or sewer corporation's most recent 16
general rate proceeding; provided, however, that neither 17
WSIRA revenues attributable to replacement of customer -owned 18
lead service lines, nor any reconciliation amounts described 19
in subdivision (2) of subsection 5 of section 393.1509, 20 SB 214 46
shall count toward the program cap. The WSIRA and any 21
future changes thereto sh all be calculated and implemented 22
in accordance with the provisions of sections 393.1503 to 23
393.1509. WSIRA revenues shall be subject to refund based 24
upon a finding and order of the commission, to the extent 25
provided in subsections 5 and 8 of section 3 93.1509. 26
2. The commission shall not approve a WSIRA for a 27
water or sewer corporation that has not had a general rate 28
proceeding decided or dismissed by issuance of a commission 29
order within the past three years of the filing of a 30
petition pursuant to this section unless the water or sewer 31
corporation has filed for or is the subject of a new general 32
rate proceeding. 33
3. In no event shall a water or sewer corporation 34
collect a WSIRA for a period exceeding three years unless 35
the water or sewer corporation has filed for or is the 36
subject of a pending general rate proceeding; provided that 37
the WSIRA may be collected until the effective date of new 38
rate schedules established as a result of the new general 39
rate proceeding or until the subjec t general rate proceeding 40
is otherwise decided or dismissed by issuance of a 41
commission order without new rates being established. 42
4. Except as provided in this subsection, in no event 43
shall a water or sewer corporation collect a WSIRA if also 44
collecting revenues from a commission approved 45
infrastructure system replacement surcharge as provided in 46
sections 393.1000 to 393.1006. In no event shall a customer 47
be charged both an infrastructure system replacement 48
surcharge as provided in sections 393.1000 to 393.1006 and a 49
WSIRA. In the event a water or sewer corporation is 50
collecting infrastructure system replacement surcharge 51
revenues under sections 393.1000 to 393.1006, that was 52 SB 214 47
approved prior to August 28, 2021, when the initial WSIRA is 53
filed, the approved infrastructure system replacement 54
surcharge revenues shall be included in the new WSIRA filing. 55
393.1645. 1. Subject to the limitations provided for 1
in subsection 2 of this section, and upon proper application 2
by an eligible customer prior to public announcement of a 3
growth project, a new or existing account meeting the 4
criteria in this subsection shall qualify for one of the 5
discounts set forth in subdivision (1) or (2) of this 6
subsection: 7
(1) When the customer is a new customer and the new 8
load is reasonably projected to be at least two hundred 9
seventy thousand ccf annually, the discount shall equal up 10
to twenty-five percent subject to the limiting provisions of 11
this section and shall apply for four years; or 12
(2) When the customer is an existing customer and the 13
new load is reasonably projected to be at least one hundred 14
thirty-five thousand ccf annually, the discount shall equal 15
twenty-five percent subject to the limiting provisions of 16
this section and shall apply for four years. 17
To obtain one of the discounts set forth in subdivision (1) 18
or (2) of this subsection, the customer's load shall be 19
incremental, net of any offsetting load reductions due to 20
the termination of other accounts of the customer or an 21
affiliate of the customer within twelve months prior to the 22
commencement of service to the new load, the customer shall 23
receive an economic development incentive from the local, 24
regional, state, or federal government, or from an agen cy or 25
program of any such government, in conjunction with the 26
incremental load, and the customer shall meet the criteria 27
set forth in the gas corporation's economic development 28 SB 214 48
rider tariff sheet, as approved by the commission, that are 29
not inconsistent with the provisions of this subsection. 30
Unless otherwise provided for by the gas corporation's 31
tariff, the applicable discount shall be a percentage 32
applied to all variable base -rate components of the bill. 33
The discount shall be applied to such in cremental load from 34
the date when the meter has been permanently set until the 35
date that such incremental load no longer meets the criteria 36
required to qualify for the discount as determined under the 37
provisions of subsection 2 of this section, or a ma ximum of 38
four years. The gas corporation may include in its tariff 39
additional or alternative terms and conditions to a 40
customer's utilization of the discount, subject to approval 41
of such terms and conditions by the commission. The 42
customer, on forms supplied by the gas corporation, shall 43
apply for the applicable discount provided for by this 44
subsection at least ninety days prior to the date the 45
customer requests that the incremental usage receive one of 46
the discounts provided for by this subsecti on and shall 47
enter into a written agreement with the gas corporation 48
reflecting the discount percentages and other pertinent 49
details prior to which no discount will be available. If 50
the incremental usage is not separately metered, the gas 51
corporation's determination of the incremental usage shall 52
control. The gas corporation shall verify the customer's 53
consumption annually to determine continued qualification 54
for the applicable discount. Notwithstanding the foregoing 55
provisions of this subsectio n, the cents-per-ccf realization 56
resulting from application of any discounted rates as 57
calculated shall be higher than the gas corporation's 58
variable cost to serve such incremental usage and the 59
applicable discounted rate also shall make a positive 60 SB 214 49
contribution to fixed costs associated with service to such 61
incremental usage. If in a subsequent general rate 62
proceeding the commission determines that application of a 63
discounted rate is not adequate to cover the gas 64
corporation's variable cost to ser ve accounts in question 65
and provide a positive contribution to fixed costs, then the 66
commission shall reduce the discount for those accounts 67
prospectively to the extent necessary to do so. 68
2. In each general rate proceeding concluded after 69
August 28, 2025, the difference in revenues generated by 70
applying the discounted rates provided for by this section 71
and the revenues that would have been generated without such 72
discounts shall not be imputed into the gas corporation's 73
revenue requirement, bu t instead such revenue requirement 74
shall be set using the revenues generated by such discounted 75
rates, and the impact of the discounts provided for by this 76
section shall be allocated to all the gas corporation's 77
customer classes, including the classes with customers that 78
qualify for discounts under this section, through the 79
application of a uniform percentage adjustment to the 80
revenue requirement responsibility of all customer classes. 81
To qualify for the discounted rates provided for in this 82
section, customers shall meet the applicable criteria within 83
twenty-four months of initially receiving discounts based on 84
metering data for calendar months thirteen through twenty - 85
four and annually thereafter. If such data indicates that 86
the customer did not meet the applicable criteria for any 87
subsequent twelve-month period, it shall thereafter no 88
longer qualify for a discounted rate. Customer usage 89
existing at the time the customer makes application for 90
discounted rates under this section shall not c onstitute 91
incremental usage. The discounted rates provided for by 92 SB 214 50
this section apply only to variable base -rate components, 93
with charges or credits arising from any rate adjustment 94
mechanism authorized by law to be applied to customers 95
qualifying for discounted rates under this section in the 96
same manner as such rate adjustments would apply in absence 97
of this section. 98
3. For purposes of this section, "gas corporation" 99
shall mean the same as defined in section 386.020. 100
393.1700. 1. For purposes of sections 393.1700 to 1
393.1715, the following terms shall mean: 2
(1) "Ancillary agreement", a bond, insurance policy, 3
letter of credit, reserve account, surety bond, interest 4
rate lock or swap arrangement, hedging arrangeme nt, 5
liquidity or credit support arrangement, or other financial 6
arrangement entered into in connection with securitized 7
utility tariff bonds; 8
(2) "Assignee", a legally recognized entity to which 9
an electrical corporation assigns, sells, or transf ers, 10
other than as security, all or a portion of its interest in 11
or right to securitized utility tariff property. The term 12
includes a corporation, limited liability company, general 13
partnership or limited partnership, public authority, trust, 14
financing entity, or any entity to which an assignee 15
assigns, sells, or transfers, other than as security, its 16
interest in or right to securitized utility tariff property; 17
(3) "Bondholder", a person who holds a securitized 18
utility tariff bond; 19
(4) "Code", the uniform commercial code, chapter 400; 20
(5) "Commission", the Missouri public service 21
commission; 22 SB 214 51
(6) "Electrical corporation", the same as defined in 23
section 386.020, but shall not include an electrical 24
corporation as described in subsection 2 of section 393.110; 25
(7) "Energy transition costs" include all of the 26
following: 27
(a) Pretax costs with respect to a retired or 28
abandoned or to be retired or abandoned electric generating 29
facility that is the subject of a petitio n for a financing 30
order filed under this section where such early retirement 31
or abandonment is deemed reasonable and prudent by the 32
commission through a final order issued by the commission, 33
include, but are not limited to, the undepreciated 34
investment in the retired or abandoned or to be retired or 35
abandoned electric generating facility and any facilities 36
ancillary thereto or used in conjunction therewith, costs of 37
decommissioning and restoring the site of the electric 38
generating facility, other a pplicable capital and operating 39
costs, accrued carrying charges, and deferred expenses, with 40
the foregoing to be reduced by applicable tax benefits of 41
accumulated and excess deferred income taxes, insurance, 42
scrap and salvage proceeds, and may include the cost of 43
retiring any existing indebtedness, fees, costs, and 44
expenses to modify existing debt agreements or for waivers 45
or consents related to existing debt agreements; 46
(b) Pretax costs that an electrical corporation has 47
previously incurred r elated to the retirement or abandonment 48
of such an electric generating facility occurring before 49
August 28, 2021; 50
(8) "Financing costs" includes all of the following: 51
(a) Interest and acquisition, defeasance, or 52
redemption premiums payable o n securitized utility tariff 53
bonds; 54 SB 214 52
(b) Any payment required under an ancillary agreement 55
and any amount required to fund or replenish a reserve 56
account or other accounts established under the terms of any 57
indenture, ancillary agreement, or other financing documents 58
pertaining to securitized utility tariff bonds; 59
(c) Any other cost related to issuing, supporting, 60
repaying, refunding, and servicing securitized utility 61
tariff bonds, including servicing fees, accounting and 62
auditing fees, trustee fees, legal fees, consulting fees, 63
structuring adviser fees, administrative fees, placement and 64
underwriting fees, independent director and manager fees, 65
capitalized interest, rating agency fees, stock exchange 66
listing and compliance fees, secur ity registration fees, 67
filing fees, information technology programming costs, and 68
any other costs necessary to otherwise ensure the timely 69
payment of securitized utility tariff bonds or other amounts 70
or charges payable in connection with the bonds, inc luding 71
costs related to obtaining the financing order; 72
(d) Any taxes and license fees or other fees imposed 73
on the revenues generated from the collection of the 74
securitized utility tariff charge or otherwise resulting 75
from the collection of secur itized utility tariff charges, 76
in any such case whether paid, payable, or accrued; 77
(e) Any state and local taxes, franchise, gross 78
receipts, and other taxes or similar charges, including 79
commission assessment fees, whether paid, payable, or 80
accrued; 81
(f) Any costs associated with performance of the 82
commission's responsibilities under this section in 83
connection with approving, approving subject to conditions, 84
or rejecting a petition for a financing order, and in 85
performing its duties in co nnection with the issuance advice 86 SB 214 53
letter process, including costs to retain counsel, one or 87
more financial advisors, or other consultants as deemed 88
appropriate by the commission and paid pursuant to this 89
section; 90
(9) "Financing order", an order f rom the commission 91
that authorizes the issuance of securitized utility tariff 92
bonds; the imposition, collection, and periodic adjustments 93
of a securitized utility tariff charge; the creation of 94
securitized utility tariff property; and the sale, 95
assignment, or transfer of securitized utility tariff 96
property to an assignee; 97
(10) "Financing party", bondholders and trustees, 98
collateral agents, any party under an ancillary agreement, 99
or any other person acting for the benefit of bondholders; 100
(11) "Financing statement", the same as defined in 101
article 9 of the code; 102
(12) "Pledgee", a financing party to which an 103
electrical corporation or its successors or assignees 104
mortgages, negotiates, pledges, or creates a security 105
interest or lien on all or any portion of its interest in or 106
right to securitized utility tariff property; 107
(13) "Qualified extraordinary costs", costs incurred 108
prudently before, on, or after August 28, 2021, of an 109
extraordinary nature which would cause extreme cust omer rate 110
impacts if reflected in retail customer rates recovered 111
through customary ratemaking, such as but not limited to 112
those related to purchases of fuel or power, inclusive of 113
carrying charges, during anomalous weather events; 114
(14) "Rate base cutoff date", the same as defined in 115
subdivision (4) of subsection 1 of section 393.1400 as such 116
term existed on August 28, 2021; 117 SB 214 54
(15) "Securitized utility tariff bonds", bonds, 118
debentures, notes, certificates of participation, 119
certificates of beneficial interest, certificates of 120
ownership, or other evidences of indebtedness or ownership 121
that are issued by an electrical corporation or an assignee 122
pursuant to a financing order, the proceeds of which are 123
used directly or indirectly to recover, finance, or 124
refinance commission -approved securitized utility tariff 125
costs and financing costs, and that are secured by or 126
payable from securitized utility tariff property. If 127
certificates of participation or ownership are issued, 128
references in this section to principal, interest, or 129
premium shall be construed to refer to comparable amounts 130
under those certificates; 131
(16) "Securitized utility tariff charge", the amounts 132
authorized by the commission to repay, finance, or refinance 133
securitized utility tariff costs and financing costs and 134
that are, except as otherwise provided for in this section, 135
nonbypassable charges imposed on and part of all retail 136
customer bills, collected by an electrical corporation or 137
its successors or assignees, or a collection agent, in full, 138
separate and apart from the electrical corporation's base 139
rates, and paid by all existing or future retail customers 140
receiving electrical service from the electrical corporation 141
or its successors or assignees under commissi on-approved 142
rate schedules, except for customers receiving electrical 143
service under special contracts as of August 28, 2021, even 144
if a retail customer elects to purchase electricity from an 145
alternative electricity supplier following a fundamental 146
change in regulation of public utilities in this state; 147 SB 214 55
(17) "Securitized utility tariff costs", either energy 148
transition costs or qualified extraordinary costs as the 149
case may be; 150
(18) "Securitized utility tariff property", all of the 151
following: 152
(a) All rights and interests of an electrical 153
corporation or successor or assignee of the electrical 154
corporation under a financing order, including the right to 155
impose, bill, charge, collect, and receive securitized 156
utility tariff charges autho rized under the financing order 157
and to obtain periodic adjustments to such charges as 158
provided in the financing order; 159
(b) All revenues, collections, claims, rights to 160
payments, payments, money, or proceeds arising from the 161
rights and interests s pecified in the financing order, 162
regardless of whether such revenues, collections, claims, 163
rights to payment, payments, money, or proceeds are imposed, 164
billed, received, collected, or maintained together with or 165
commingled with other revenues, collecti ons, rights to 166
payment, payments, money, or proceeds; 167
(19) "Special contract", electrical service provided 168
under the terms of a special incremental load rate schedule 169
at a fixed price rate approved by the commission. 170
2. (1) An electrical corporation may petition the 171
commission for a financing order to finance energy 172
transition costs through an issuance of securitized utility 173
tariff bonds. The petition shall include all of the 174
following: 175
(a) A description of the electric generating facility 176
or facilities that the electrical corporation has retired or 177
abandoned, or proposes to retire or abandon, prior to the 178
date that all undepreciated investment relating thereto has 179 SB 214 56
been recovered through rates and the reasons for undertaking 180
such early retirement or abandonment, or if the electrical 181
corporation is subject to a separate commission order or 182
proceeding relating to such retirement or abandonment as 183
contemplated by subdivision (2) of this subsection, and a 184
description of the ord er or other proceeding; 185
(b) The energy transition costs; 186
(c) An indicator of whether the electrical corporation 187
proposes to finance all or a portion of the energy 188
transition costs using securitized utility tariff bonds. If 189
the electrical corporation proposes to finance a portion of 190
the costs, the electrical corporation shall identify the 191
specific portion in the petition. By electing not to 192
finance all or any portion of such energy transition costs 193
using securitized utility tariff bonds, an electrical 194
corporation shall not be deemed to waive its right to 195
recover such costs pursuant to a separate proceeding with 196
the commission; 197
(d) An estimate of the financing costs related to the 198
securitized utility tariff bonds; 199
(e) An estimate of the securitized utility tariff 200
charges necessary to recover the securitized utility tariff 201
costs and financing costs and the period for recovery of 202
such costs; 203
(f) A comparison between the net present value of the 204
costs to customers that are estimated to result from the 205
issuance of securitized utility tariff bonds and the costs 206
that would result from the application of the traditional 207
method of financing and recovering the undepreciated 208
investment of facilities that may become securit ized utility 209
tariff costs from customers. The comparison should 210
demonstrate that the issuance of securitized utility tariff 211 SB 214 57
bonds and the imposition of securitized utility tariff 212
charges are expected to provide quantifiable net present 213
value benefits to customers; 214
(g) A proposed future ratemaking process to reconcile 215
any differences between securitized utility tariff costs 216
financed by securitized utility tariff bonds and the final 217
securitized costs incurred by the electrical corporation or 218
assignee provided that any such reconciliation shall not 219
affect the amount of securitized utility tariff bonds or the 220
associated securitized utility tariff charges paid by 221
customers; and 222
(h) Direct testimony supporting the petition. 223
(2) An electrical corporation may petition the 224
commission for a financing order to finance qualified 225
extraordinary costs. The petition shall include all of the 226
following: 227
(a) A description of the qualified extraordinary 228
costs, including their magnitude, the reasons those costs 229
were incurred by the electrical corporation and the retail 230
customer rate impact that would result from customary 231
ratemaking treatment of such costs; 232
(b) An indicator of whether the electrical corporation 233
proposes to finance all or a portion of the qualified 234
extraordinary costs using securitized utility tariff bonds. 235
If the electrical corporation proposes to finance a portion 236
of the costs, the electrical corporation shall identify the 237
specific portion in the petition. By electing not to 238
finance all or any portion of such qualified extraordinary 239
costs using securitized utility tariff bonds, an electrical 240
corporation shall not be deemed to waive its right to 241
reflect such costs in its retail rates pursuant to a 242
separate proceeding with the commission; 243 SB 214 58
(c) An estimate of the financing costs related to the 244
securitized utility tariff bonds; 245
(d) An estimate of the securitized utility tariff 246
charges necessary to recover the qualified extraordinary 247
costs and financing costs and the period for recovery of 248
such costs; 249
(e) A comparison between the net present value of the 250
costs to customers that are estimated to result from the 251
issuance of securitized utility tariff bonds and the costs 252
that would result from the application of the customary 253
method of financing and reflecting the qualified 254
extraordinary costs in retail customer rates. The 255
comparison should demonstrate that the issuance of 256
securitized utility tariff bonds and the imposition of 257
securitized utility tariff charges are expected to provide 258
quantifiable net present value benefits to retail customers; 259
(f) A proposed future ratemaking process to reconcile 260
any differences between securitized utility tariff costs 261
financed by securitized utility tariff bonds and the final 262
securitized costs incurred by the electrical corporation or 263
assignee provided that any such reconciliation shall not 264
affect the amount of securitized utility tariff bonds or the 265
associated securitized utility tariff charges paid by 266
customers; and 267
(g) Direct testimony supporting the petition. 268
(3) (a) Proceedings on a petition submitted pursuant 269
to this subsection begin with the petition by an electrical 270
corporation and shall be disposed of in accordance with the 271
requirements of this section and the rules of the 272
commission, except as follows: 273
a. The commission shall establish a procedural 274
schedule that permits a commission decision no later than 275 SB 214 59
two hundred fifteen days after the date the petiti on is 276
filed; 277
b. No later than two hundred fifteen days after the 278
date the petition is filed, the commission shall issue a 279
financing order approving the petition, an order approving 280
the petition subject to conditions, or an order rejecting 281
the petition; provided, however, that the electrical 282
corporation shall provide notice of intent to file a 283
petition for a financing order to the commission no less 284
than sixty days in advance of such filing; 285
c. Judicial review of a financing order may be had 286
only in accordance with sections 386.500 and 386.510. 287
(b) In performing its responsibilities under this 288
section in approving, approving subject to conditions, or 289
rejecting a petition for a financing order, the commission 290
may retain counsel, o ne or more financial advisors, or other 291
consultants as it deems appropriate. Such outside counsel, 292
advisor or advisors, or consultants shall owe a duty of 293
loyalty solely to the commission and shall have no interest 294
in the proposed securitized utility tariff bonds. The costs 295
associated with any such engagements shall be paid by the 296
petitioning corporation and shall be included as financed 297
costs in the securitized utility tariff charge and shall not 298
be an obligation of the state and shall be assigne d solely 299
to the subject transaction. The commission may directly 300
contract counsel, financial advisors, or other consultants 301
as necessary for effectuating the purposes of this section. 302
Such contracting procedures shall not be subject to the 303
provisions of chapter 34. However, the commission shall 304
establish a policy for the bid process. Such policy shall 305
be publicly available and any information related to 306 SB 214 60
contracts under the established policy shall be included in 307
publicly available rate case doc umentation. 308
(c) A financing order issued by the commission, after 309
a hearing, to an electrical corporation shall include all of 310
the following elements: 311
a. The amount of securitized utility tariff costs to 312
be financed using securitized utility tariff bonds and a 313
finding that recovery of such costs is just and reasonable 314
and in the public interest. The commission shall describe 315
and estimate the amount of financing costs that may be 316
recovered through securitized utility tariff charges and 317
specify the period over which securitized utility tariff 318
costs and financing costs may be recovered; 319
b. A finding that the proposed issuance of securitized 320
utility tariff bonds and the imposition and collection of a 321
securitized utility tariff charg e are just and reasonable 322
and in the public interest and are expected to provide 323
quantifiable net present value benefits to customers as 324
compared to recovery of the components of securitized 325
utility tariff costs that would have been incurred absent 326
the issuance of securitized utility tariff bonds. 327
Notwithstanding any provisions of this section to the 328
contrary, in considering whether to find the proposed 329
issuance of securitized utility tariff bonds and the 330
imposition and collection of a securitized utility tariff 331
charge are just and reasonable and in the public interest, 332
the commission may consider previous instances where it has 333
issued financing orders to the petitioning electrical 334
corporation and such electrical corporation has previously 335
issued securitized utility tariff bonds; 336
c. A finding that the proposed structuring and pricing 337
of the securitized utility tariff bonds are reasonably 338 SB 214 61
expected to result in the lowest securitized utility tariff 339
charges consistent with market conditio ns at the time the 340
securitized utility tariff bonds are priced and the terms of 341
the financing order; 342
d. A requirement that, for so long as the securitized 343
utility tariff bonds are outstanding and until all financing 344
costs have been paid in full, the imposition and collection 345
of securitized utility tariff charges authorized under a 346
financing order shall be nonbypassable and paid by all 347
existing and future retail customers receiving electrical 348
service from the electrical corporation or its succe ssors or 349
assignees under commission -approved rate schedules except 350
for customers receiving electrical service under special 351
contracts on August 28, 2021, even if a retail customer 352
elects to purchase electricity from an alternative electric 353
supplier following a fundamental change in regulation of 354
public utilities in this state; 355
e. A formula-based true-up mechanism for making, at 356
least annually, expeditious periodic adjustments in the 357
securitized utility tariff charges that customers are 358
required to pay pursuant to the financing order and for 359
making any adjustments that are necessary to correct for any 360
overcollection or undercollection of the charges or to 361
otherwise ensure the timely payment of securitized utility 362
tariff bonds and financing costs and other required amounts 363
and charges payable under the securitized utility tariff 364
bonds; 365
f. The securitized utility tariff property that is, or 366
shall be, created in favor of an electrical corporation or 367
its successors or assignees and tha t shall be used to pay or 368
secure securitized utility tariff bonds and approved 369
financing costs; 370 SB 214 62
g. The degree of flexibility to be afforded to the 371
electrical corporation in establishing the terms and 372
conditions of the securitized utility tariff b onds, 373
including, but not limited to, repayment schedules, expected 374
interest rates, and other financing costs; 375
h. How securitized utility tariff charges will be 376
allocated among retail customer classes. The initial 377
allocation shall remain in effec t until the electrical 378
corporation completes a general rate proceeding, and once 379
the commission's order from that general rate proceeding 380
becomes final, all subsequent applications of an adjustment 381
mechanism regarding securitized utility tariff charges shall 382
incorporate changes in the allocation of costs to customers 383
as detailed in the commission's order from the electrical 384
corporation's most recent general rate proceeding; 385
i. A requirement that, after the final terms of an 386
issuance of securitized utility tariff bonds have been 387
established and before the issuance of securitized utility 388
tariff bonds, the electrical corporation determines the 389
resulting initial securitized utility tariff charge in 390
accordance with the financing order, and that such initial 391
securitized utility tariff charge be final and effective 392
upon the issuance of such securitized utility tariff bonds 393
with such charge to be reflected on a compliance tariff 394
sheet bearing such charge; 395
j. A method of tracing funds colle cted as securitized 396
utility tariff charges, or other proceeds of securitized 397
utility tariff property, determining that such method shall 398
be deemed the method of tracing such funds and determining 399
the identifiable cash proceeds of any securitized utilit y 400
tariff property subject to a financing order under 401
applicable law; 402 SB 214 63
k. A statement specifying a future ratemaking process 403
to reconcile any differences between the actual securitized 404
utility tariff costs financed by securitized utility tariff 405
bonds and the final securitized utility tariff costs 406
incurred by the electrical corporation or assignee provided 407
that any such reconciliation shall not affect the amount of 408
securitized utility tariff bonds or the associated 409
securitized utility tariff cha rges paid by customers; 410
l. A procedure that shall allow the electrical 411
corporation to earn a return, at the cost of capital 412
authorized from time to time by the commission in the 413
electrical corporation's rate proceedings, on any moneys 414
advanced by the electrical corporation to fund reserves, if 415
any, or capital accounts established under the terms of any 416
indenture, ancillary agreement, or other financing documents 417
pertaining to the securitized utility tariff bonds; 418
m. In a financing order g ranting authorization to 419
securitize energy transition costs or in a financing order 420
granting authorization to securitize qualified extraordinary 421
costs that include retired or abandoned facility costs, a 422
procedure for the treatment of accumulated deferr ed income 423
taxes and excess deferred income taxes in connection with 424
the retired or abandoned or to be retired or abandoned 425
electric generating facility, or in connection with retired 426
or abandoned facilities included in qualified extraordinary 427
costs. The accumulated deferred income taxes, including 428
excess deferred income taxes, shall be excluded from rate 429
base in future general rate cases and the net tax benefits 430
relating to amounts that will be recovered through the 431
issuance of securitized utility tariff bonds shall be 432
credited to retail customers by reducing the amount of such 433
securitized utility tariff bonds that would otherwise be 434 SB 214 64
issued. The customer credit shall include the net present 435
value of the tax benefits, calculated using a discoun t rate 436
equal to the expected interest rate of the securitized 437
utility tariff bonds, for the estimated accumulated and 438
excess deferred income taxes at the time of securitization 439
including timing differences created by the issuance of 440
securitized utility tariff bonds amortized over the period 441
of the bonds multiplied by the expected interest rate on 442
such securitized utility tariff bonds; 443
n. An outside date, which shall not be earlier than 444
one year after the date the financing order is no longer 445
subject to appeal, when the authority to issue securitized 446
utility tariff bonds granted in such financing order shall 447
expire; and 448
o. Include any other conditions that the commission 449
considers appropriate and that are not inconsistent with 450
this section. 451
(d) A financing order issued to an electrical 452
corporation may provide that creation of the electrical 453
corporation's securitized utility tariff property is 454
conditioned upon, and simultaneous with, the sale or other 455
transfer of the securitiz ed utility tariff property to an 456
assignee and the pledge of the securitized utility tariff 457
property to secure securitized utility tariff bonds. 458
(e) If the commission issues a financing order, the 459
electrical corporation shall file with the commissi on at 460
least annually a petition or a letter applying the formula - 461
based true-up mechanism and, based on estimates of 462
consumption for each rate class and other mathematical 463
factors, requesting administrative approval to make the 464
applicable adjustments. The review of the filing shall be 465
limited to determining whether there are any mathematical or 466 SB 214 65
clerical errors in the application of the formula -based true- 467
up mechanism relating to the appropriate amount of any 468
overcollection or undercollection of sec uritized utility 469
tariff charges and the amount of an adjustment. The 470
adjustments shall ensure the recovery of revenues sufficient 471
to provide for the payment of principal, interest, 472
acquisition, defeasance, financing costs, or redemption 473
premium and other fees, costs, and charges in respect of 474
securitized utility tariff bonds approved under the 475
financing order. Within thirty days after receiving an 476
electrical corporation's request pursuant to this paragraph, 477
the commission shall either approve the request or inform 478
the electrical corporation of any mathematical or clerical 479
errors in its calculation. If the commission informs the 480
electrical corporation of mathematical or clerical errors in 481
its calculation, the electrical corporation shall corre ct 482
its error and refile its request. The time frames 483
previously described in this paragraph shall apply to a 484
refiled request. 485
(f) At the time of any transfer of securitized utility 486
tariff property to an assignee or the issuance of 487
securitized utility tariff bonds authorized thereby, 488
whichever is earlier, a financing order is irrevocable and, 489
except for changes made pursuant to the formula -based true- 490
up mechanism authorized in this section, the commission may 491
not amend, modify, or terminate t he financing order by any 492
subsequent action or reduce, impair, postpone, terminate, or 493
otherwise adjust securitized utility tariff charges approved 494
in the financing order. After the issuance of a financing 495
order, the electrical corporation retains sol e discretion 496
regarding whether to assign, sell, or otherwise transfer 497
securitized utility tariff property or to cause securitized 498 SB 214 66
utility tariff bonds to be issued, including the right to 499
defer or postpone such assignment, sale, transfer, or 500
issuance. 501
(g) The commission, in a financing order and subject 502
to the issuance advice letter process under paragraph (h) of 503
this subdivision, shall specify the degree of flexibility to 504
be afforded the electrical corporation in establishing the 505
terms and conditions for the securitized utility tariff 506
bonds to accommodate changes in market conditions, including 507
repayment schedules, interest rates, financing costs, 508
collateral requirements, required debt service and other 509
reserves and the ability of the ele ctrical corporation, at 510
its option, to effect a series of issuances of securitized 511
utility tariff bonds and correlated assignments, sales, 512
pledges, or other transfers of securitized utility tariff 513
property. Any changes made under this paragraph to ter ms 514
and conditions for the securitized utility tariff bonds 515
shall be in conformance with the financing order. 516
(h) As the actual structure and pricing of the 517
securitized utility tariff bonds will be unknown at the time 518
the financing order is issued , prior to the issuance of each 519
series of bonds, an issuance advice letter shall be provided 520
to the commission by the electrical corporation following 521
the determination of the final terms of such series of bonds 522
no later than one day after the pricing of the securitized 523
utility tariff bonds. The commission shall have the 524
authority to designate a representative or representatives 525
from commission staff, who may be advised by a financial 526
advisor or advisors contracted with the commission, to 527
provide input to the electrical corporation and collaborate 528
with the electrical corporation in all facets of the process 529
undertaken by the electrical corporation to place the 530 SB 214 67
securitized utility tariff bonds to market so the 531
commission's representative or repr esentatives can provide 532
the commission with an opinion on the reasonableness of the 533
pricing, terms, and conditions of the securitized utility 534
tariff bonds on an expedited basis. Neither the designated 535
representative or representatives from the commiss ion staff 536
nor one or more financial advisors advising commission staff 537
shall have authority to direct how the electrical 538
corporation places the bonds to market although they shall 539
be permitted to attend all meetings convened by the 540
electrical corporation to address placement of the bonds to 541
market. The form of such issuance advice letter shall be 542
included in the financing order and shall indicate the final 543
structure of the securitized utility tariff bonds and 544
provide the best available estimate of total ongoing 545
financing costs. The issuance advice letter shall report 546
the initial securitized utility tariff charges and other 547
information specific to the securitized utility tariff bonds 548
to be issued, as the commission may require. Unless an 549
earlier date is specified in the financing order, the 550
electrical corporation may proceed with the issuance of the 551
securitized utility tariff bonds unless, prior to noon on 552
the fourth business day after the commission receives the 553
issuance advice letter, th e commission issues a disapproval 554
letter directing that the bonds as proposed shall not be 555
issued and the basis for that disapproval. The financing 556
order may provide such additional provisions relating to the 557
issuance advice letter process as the comm ission considers 558
appropriate and as are not inconsistent with this section. 559
(4) (a) In performing the responsibilities of this 560
section in connection with the issuance of a financing 561
order, approving the petition, an order approving the 562 SB 214 68
petition subject to conditions, or an order rejecting the 563
petition, the commission shall undertake due diligence as it 564
deems appropriate prior to the issuance of the order 565
regarding the petition pursuant to which the commission may 566
request additional informatio n from the electrical 567
corporation and may engage one or more financial advisors, 568
one or more consultants, and counsel as the commission deems 569
necessary. Any financial advisor or advisors, counsel, and 570
consultants engaged by the commission shall have a fiduciary 571
duty with respect to the proposed issuance of securitized 572
utility bonds solely to the commission. All expenses 573
associated with such services shall be included as part of 574
the financing costs of the securitized utility tariff bonds 575
and shall be included in the securitized utility tariff 576
charge. 577
(b) If an electrical corporation's petition for a 578
financing order is denied or withdrawn, or for any reason 579
securitized utility tariff bonds are not issued, any costs 580
of retaining one or more financial advisors, one or more 581
consultants, and counsel on behalf of the commission shall 582
be paid by the petitioning electrical corporation and shall 583
be eligible for full recovery, including carrying costs, if 584
approved by the commission in the electr ical corporation's 585
future rates. 586
(5) At the request of an electrical corporation, the 587
commission may commence a proceeding and issue a subsequent 588
financing order that provides for refinancing, retiring, or 589
refunding securitized utility tariff bon ds issued pursuant 590
to the original financing order if the commission finds that 591
the subsequent financing order satisfies all of the criteria 592
specified in this section for a financing order. Effective 593
upon retirement of the refunded securitized utility tariff 594 SB 214 69
bonds and the issuance of new securitized utility tariff 595
bonds, the commission shall adjust the related securitized 596
utility tariff charges accordingly. 597
(6) (a) A financing order remains in effect and 598
securitized utility tariff property u nder the financing 599
order continues to exist until securitized utility tariff 600
bonds issued pursuant to the financing order have been paid 601
in full or defeased and, in each case, all commission - 602
approved financing costs of such securitized utility tariff 603
bonds have been recovered in full. 604
(b) A financing order issued to an electrical 605
corporation remains in effect and unabated notwithstanding 606
the reorganization, bankruptcy, or other insolvency 607
proceedings, merger, or sale of the electrical corporat ion 608
or its successors or assignees. 609
3. (1) The commission may not, in exercising its 610
powers and carrying out its duties regarding any matter 611
within its authority, consider the securitized utility 612
tariff bonds issued pursuant to a financing order to be the 613
debt of the electrical corporation other than for federal 614
and state income tax purposes, consider the securitized 615
utility tariff charges paid under the financing order to be 616
the revenue of the electrical corporation for any purpose, 617
consider the securitized utility tariff costs or financing 618
costs specified in the financing order to be the costs of 619
the electrical corporation, nor may the commission determine 620
any action taken by an electrical corporation which is 621
consistent with the financ ing order to be unjust or 622
unreasonable, and section 386.300 shall not apply to the 623
issuance of securitized utility tariff bonds. 624
(2) Securitized utility tariff charges shall not be 625
utilized or accounted for in determining the electrical 626 SB 214 70
corporation's average overall rate, as defined in section 627
393.1655 and as used to determine the maximum retail rate 628
impact limitations provided for by subsections 3 and 4 of 629
section 393.1655. 630
(3) No electrical corporation is required to file a 631
petition for a financing order under this section or 632
otherwise utilize this section. An electrical corporation's 633
decision not to file a petition for a financing order under 634
this section shall not be admissible in any commission 635
proceeding nor shall it be otherwi se utilized or relied on 636
by the commission in any proceeding respecting the 637
electrical corporation's rates or its accounting, including, 638
without limitation, any general rate proceeding, fuel 639
adjustment clause docket, or proceedings relating to 640
accounting authority, whether initiated by the electrical 641
corporation or otherwise. The commission may not order or 642
otherwise directly or indirectly require an electrical 643
corporation to use securitized utility tariff bonds to 644
recover securitized utility tari ff costs or to finance any 645
project, addition, plant, facility, extension, capital 646
improvement, equipment, or any other expenditure. 647
(4) The commission may not refuse to allow an 648
electrical corporation to recover securitized utility tariff 649
costs in an otherwise permissible fashion, or refuse or 650
condition authorization or approval of the issuance and sale 651
by an electrical corporation of securities or the assumption 652
by the electrical corporation of liabilities or obligations, 653
because of the poten tial availability of securitized utility 654
tariff bond financing. 655
(5) After the issuance of a financing order with or 656
without conditions, the electrical corporation retains sole 657
discretion regarding whether to cause the securitized 658 SB 214 71
utility tariff bonds to be issued, including the right to 659
defer or postpone such sale, assignment, transfer, or 660
issuance. Nothing shall prevent the electrical corporation 661
from abandoning the issuance of securitized utility tariff 662
bonds under the financing order by fi ling with the 663
commission a statement of abandonment and the reasons 664
therefor; provided, that the electrical corporation's 665
abandonment decision shall not be deemed imprudent because 666
of the potential availability of securitized utility tariff 667
bond financing; and provided further, that an electrical 668
corporation's decision to abandon issuance of such bonds may 669
be raised by any party, including the commission, as a 670
reason the commission should not authorize, or should 671
modify, the rate-making treatment proposed by the electrical 672
corporation of the costs associated with the electric 673
generating facility that was the subject of a petition under 674
this section that would have been securitized as energy 675
transition costs had such abandonment decision not been 676
made, but only if the electrical corporation requests 677
nonstandard plant retirement treatment of such costs for 678
rate-making purposes. 679
(6) The commission may not, directly or indirectly, 680
utilize or consider the debt reflected by the securitized 681
utility tariff bonds in establishing the electrical 682
corporation's capital structure used to determine any 683
regulatory matter, including but not limited to the 684
electrical corporation's revenue requirement used to set its 685
rates. 686
(7) The commission may not, directly or indirectly, 687
consider the existence of securitized utility tariff bonds 688
or the potential use of securitized utility tariff bond 689
financing proceeds in determining the electrical 690 SB 214 72
corporation's authorized rate of return used to determine 691
the electrical corporation's revenue requirement used to set 692
its rates. 693
4. The electric bills of an electrical corporation 694
that has obtained a financing order and caused securitized 695
utility tariff bonds to be issued shall comply with the 696
provisions of this subsection; however, the failure of an 697
electrical corporation to comply with this subsection does 698
not invalidate, impair, or affect any financing order, 699
securitized utility tariff property, securitized utility 700
tariff charge, or securitized utility tariff bonds. The 701
electrical corporation shall do the following: 702
(1) Explicitly reflect that a portion of the charges 703
on such bill represents securitized utility tariff charges 704
approved in a financing order issued to the electrical 705
corporation and, if the securitized utility tariff property 706
has been transferred to an assignee, shall include a 707
statement to the effect that the assignee is the owner of 708
the rights to securitized utility tariff charges and that 709
the electrical corporation or other entity, if applicable, 710
is acting as a collection agent or servicer for the 711
assignee. The tariff applicable to customers shall indicate 712
the securitized utility tariff charge and the ownership of 713
the charge; 714
(2) Include the securitized ut ility tariff charge on 715
each customer's bill as a separate line item and include 716
both the rate and the amount of the charge on each bill. 717
5. (1) (a) All securitized utility tariff property 718
that is specified in a financing order constitutes an 719
existing, present intangible property right or interest 720
therein, notwithstanding that the imposition and collection 721
of securitized utility tariff charges depends on the 722 SB 214 73
electrical corporation, to which the financing order is 723
issued, performing its servic ing functions relating to the 724
collection of securitized utility tariff charges and on 725
future electricity consumption. The property exists: 726
a. Regardless of whether or not the revenues or 727
proceeds arising from the property have been billed, have 728
accrued, or have been collected; and 729
b. Notwithstanding the fact that the value or amount 730
of the property is dependent on the future provision of 731
service to customers by the electrical corporation or its 732
successors or assignees and the future cons umption of 733
electricity by customers. 734
(b) Securitized utility tariff property specified in a 735
financing order exists until securitized utility tariff 736
bonds issued pursuant to the financing order are paid in 737
full and all financing costs and other co sts of such 738
securitized utility tariff bonds have been recovered in full. 739
(c) All or any portion of securitized utility tariff 740
property specified in a financing order issued to an 741
electrical corporation may be transferred, sold, conveyed, 742
or assigned to a successor or assignee that is wholly owned, 743
directly or indirectly, by the electrical corporation and 744
created for the limited purpose of acquiring, owning, or 745
administering securitized utility tariff property or issuing 746
securitized utility ta riff bonds under the financing order. 747
All or any portion of securitized utility tariff property 748
may be pledged to secure securitized utility tariff bonds 749
issued pursuant to the financing order, amounts payable to 750
financing parties and to counterpartie s under any ancillary 751
agreements, and other financing costs. Any transfer, sale, 752
conveyance, assignment, grant of a security interest in or 753
pledge of securitized utility tariff property by an 754 SB 214 74
electrical corporation, or an affiliate of the electrical 755
corporation, to an assignee, to the extent previously 756
authorized in a financing order, does not require the prior 757
consent and approval of the commission. 758
(d) If an electrical corporation defaults on any 759
required remittance of securitized utility t ariff charges 760
arising from securitized utility tariff property specified 761
in a financing order, a court, upon application by an 762
interested party, and without limiting any other remedies 763
available to the applying party, shall order the 764
sequestration and payment of the revenues arising from the 765
securitized utility tariff property to the financing parties 766
or their assignees. Any such financing order remains in 767
full force and effect notwithstanding any reorganization, 768
bankruptcy, or other insolvency pr oceedings with respect to 769
the electrical corporation or its successors or assignees. 770
(e) The interest of a transferee, purchaser, acquirer, 771
assignee, or pledgee in securitized utility tariff property 772
specified in a financing order issued to an ele ctrical 773
corporation, and in the revenue and collections arising from 774
that property, is not subject to setoff, counterclaim, 775
surcharge, or defense by the electrical corporation or any 776
other person or in connection with the reorganization, 777
bankruptcy, or other insolvency of the electrical 778
corporation or any other entity. 779
(f) Any successor to an electrical corporation, 780
whether pursuant to any reorganization, bankruptcy, or other 781
insolvency proceeding or whether pursuant to any merger or 782
acquisition, sale, or other business combination, or 783
transfer by operation of law, as a result of electrical 784
corporation restructuring or otherwise, shall perform and 785
satisfy all obligations of, and have the same rights under a 786 SB 214 75
financing order as, the electric al corporation under the 787
financing order in the same manner and to the same extent as 788
the electrical corporation, including collecting and paying 789
to the person entitled to receive the revenues, collections, 790
payments, or proceeds of the securitized util ity tariff 791
property. Nothing in this section is intended to limit or 792
impair any authority of the commission concerning the 793
transfer or succession of interests of public utilities. 794
(g) Securitized utility tariff bonds shall be 795
nonrecourse to the credit or any assets of the electrical 796
corporation other than the securitized utility tariff 797
property as specified in the financing order and any rights 798
under any ancillary agreement. 799
(2) (a) The creation, perfection, priority, and 800
enforcement of any security interest in securitized utility 801
tariff property to secure the repayment of the principal and 802
interest and other amounts payable in respect of securitized 803
utility tariff bonds, amounts payable under any ancillary 804
agreement and other finan cing costs are governed by this 805
section and not by the provisions of the code, except as 806
otherwise provided in this section. 807
(b) A security interest in securitized utility tariff 808
property is created, valid, and binding at the later of the 809
time: 810
a. The financing order is issued; 811
b. A security agreement is executed and delivered by 812
the debtor granting such security interest; 813
c. The debtor has rights in such securitized utility 814
tariff property or the power to transfer rights in su ch 815
securitized utility tariff property; or 816
d. Value is received for the securitized utility 817
tariff property. 818 SB 214 76
The description of securitized utility tariff property in a 819
security agreement is sufficient if the description refers 820
to this section and the financing order creating the 821
securitized utility tariff property. A security interest 822
shall attach as provided in this paragraph without any 823
physical delivery of collateral or other act. 824
(c) Upon the filing of a financing statement with the 825
office of the secretary of state as provided in this 826
section, a security interest in securitized utility tariff 827
property shall be perfected against all parties having 828
claims of any kind in tort, contract, or otherwise against 829
the person granting the security interest, and regardless of 830
whether the parties have notice of the security interest. 831
Without limiting the foregoing, upon such filing a security 832
interest in securitized utility tariff property shall be 833
perfected against all claims of lien cr editors, and shall 834
have priority over all competing security interests and 835
other claims other than any security interest previously 836
perfected in accordance with this section. 837
(d) The priority of a security interest in securitized 838
utility tariff property is not affected by the commingling 839
of securitized utility tariff charges with other amounts. 840
Any pledgee or secured party shall have a perfected security 841
interest in the amount of all securitized utility tariff 842
charges that are deposited in an y cash or deposit account of 843
the qualifying electrical corporation in which securitized 844
utility tariff charges have been commingled with other funds 845
and any other security interest that may apply to those 846
funds shall be terminated when they are transfe rred to a 847
segregated account for the assignee or a financing party. 848
(e) No application of the formula -based true-up 849
mechanism as provided in this section will affect the 850 SB 214 77
validity, perfection, or priority of a security interest in 851
or transfer of securitized utility tariff property. 852
(f) If a default occurs under the securitized utility 853
tariff bonds that are secured by a security interest in 854
securitized utility tariff property, the financing parties 855
or their representatives may exercise the rights and 856
remedies available to a secured party under the code, 857
including the rights and remedies available under part 6 of 858
article 9 of the code. The commission may also order 859
amounts arising from securitized utility tariff charges be 860
transferred to a separate account for the financing parties' 861
benefit, to which their lien and security interest shall 862
apply. On application by or on behalf of the financing 863
parties, the circuit court for the county or city in which 864
the electrical corporation's hea dquarters is located shall 865
order the sequestration and payment to them of revenues 866
arising from the securitized utility tariff charges. 867
(3) (a) Any sale, assignment, or other transfer of 868
securitized utility tariff property shall be an absolute 869
transfer and true sale of, and not a pledge of or secured 870
transaction relating to, the seller's right, title, and 871
interest in, to, and under the securitized utility tariff 872
property if the documents governing the transaction 873
expressly state that the tran saction is a sale or other 874
absolute transfer other than for federal and state income 875
tax purposes. For all purposes other than federal and state 876
income tax purposes, the parties' characterization of a 877
transaction as a sale of an interest in securitize d utility 878
tariff property shall be conclusive that the transaction is 879
a true sale and that ownership has passed to the party 880
characterized as the purchaser, regardless of whether the 881
purchaser has possession of any documents evidencing or 882 SB 214 78
pertaining to the interest. A sale or similar outright 883
transfer of an interest in securitized utility tariff 884
property may occur only when all of the following have 885
occurred: 886
a. The financing order creating the securitized 887
utility tariff property has become effective; 888
b. The documents evidencing the transfer of 889
securitized utility tariff property have been executed by 890
the assignor and delivered to the assignee; and 891
c. Value is received for the securitized utility 892
tariff property. 893
After such a transaction, the securitized utility tariff 894
property is not subject to any claims of the transferor or 895
the transferor's creditors, other than creditors holding a 896
prior security interest in the securitized utility tariff 897
property perfected in accordance with this section. 898
(b) The characterization of the sale, assignment, or 899
other transfer as an absolute transfer and true sale and the 900
corresponding characterization of the property interest of 901
the purchaser shall not be affected or impaired by the 902
occurrence of any of the following factors: 903
a. Commingling of securitized utility tariff charges 904
with other amounts; 905
b. The retention by the seller of (i) a partial or 906
residual interest, including an equity interest, in the 907
securitized utility tariff property, whether direct or 908
indirect, or whether subordinate or otherwise, or (ii) the 909
right to recover costs associated with taxes, franchise 910
fees, or license fees imposed on the collection of 911
securitized utility tariff charges; 912 SB 214 79
c. Any recourse that the purchaser may have against 913
the seller; 914
d. Any indemnification rights, obligations, or 915
repurchase rights made or provided by the seller; 916
e. The obligation of the seller to collect securitized 917
utility tariff charges on beha lf of an assignee; 918
f. The transferor acting as the servicer of the 919
securitized utility tariff charges or the existence of any 920
contract that authorizes or requires the electrical 921
corporation, to the extent that any interest in securitized 922
utility tariff property is sold or assigned, to contract 923
with the assignee or any financing party that it will 924
continue to operate its system to provide service to its 925
customers, will collect amounts in respect of the 926
securitized utility tariff charges for the benefit and 927
account of such assignee or financing party, and will 928
account for and remit such amounts to or for the account of 929
such assignee or financing party; 930
g. The treatment of the sale, conveyance, assignment, 931
or other transfer for tax, fina ncial reporting, or other 932
purposes; 933
h. The granting or providing to bondholders a 934
preferred right to the securitized utility tariff property 935
or credit enhancement by the electrical corporation or its 936
affiliates with respect to such securitized ut ility tariff 937
bonds; 938
i. Any application of the formula -based true-up 939
mechanism as provided in this section. 940
(c) Any right that an electrical corporation has in 941
the securitized utility tariff property before its pledge, 942
sale, or transfer or a ny other right created under this 943
section or created in the financing order and assignable 944 SB 214 80
under this section or assignable pursuant to a financing 945
order is property in the form of a contract right or a chose 946
in action. Transfer of an interest in secu ritized utility 947
tariff property to an assignee is enforceable only upon the 948
later of: 949
a. The issuance of a financing order; 950
b. The assignor having rights in such securitized 951
utility tariff property or the power to transfer rights in 952
such securitized utility tariff property to an assignee; 953
c. The execution and delivery by the assignor of 954
transfer documents in connection with the issuance of 955
securitized utility tariff bonds; and 956
d. The receipt of value for the securitized utility 957
tariff property. 958
An enforceable transfer of an interest in securitized 959
utility tariff property to an assignee is perfected against 960
all third parties, including subsequent judicial or other 961
lien creditors, when a notice of that transfer has been 962
given by the filing of a financing statement in accordance 963
with subsection 7 of this section. The transfer is 964
perfected against third parties as of the date of filing. 965
(d) The priority of a transfer perfected under this 966
section is not impaired by any later modification of the 967
financing order or securitized utility tariff property or by 968
the commingling of funds arising from securitized utility 969
tariff property with other funds. Any other security 970
interest that may apply to those funds, other than a 971
security interest perfected under this section, is 972
terminated when they are transferred to a segregated account 973
for the assignee or a financing party. If securitized 974
utility tariff property has been transferred to an assignee 975 SB 214 81
or financing party, any proceeds of that property shall be 976
held in trust for the assignee or financing party. 977
(e) The priority of the conflicting interests of 978
assignees in the same interest or rights in any securitized 979
utility tariff property is determined as follows: 980
a. Conflicting perfected interests or rights of 981
assignees rank according to priority in time of perfection. 982
Priority dates from the time a filing covering the transfer 983
is made in accordance with subsection 7 of this section; 984
b. A perfected interest or right of an assignee has 985
priority over a conflicting unperfected interest or right of 986
an assignee; 987
c. A perfected interest or right of an assignee has 988
priority over a person who becomes a lien creditor after the 989
perfection of such assig nee's interest or right. 990
6. The description of securitized utility tariff 991
property being transferred to an assignee in any sale 992
agreement, purchase agreement, or other transfer agreement, 993
granted or pledged to a pledgee in any security agreement, 994
pledge agreement, or other security document, or indicated 995
in any financing statement is only sufficient if such 996
description or indication refers to the financing order that 997
created the securitized utility tariff property and states 998
that the agreement or financing statement covers all or part 999
of the property described in the financing order. This 1000
section applies to all purported transfers of, and all 1001
purported grants or liens or security interests in, 1002
securitized utility tariff property, regardles s of whether 1003
the related sale agreement, purchase agreement, other 1004
transfer agreement, security agreement, pledge agreement, or 1005
other security document was entered into, or any financing 1006
statement was filed. 1007 SB 214 82
7. The secretary of state shall mainta in any financing 1008
statement filed to perfect a sale or other transfer of 1009
securitized utility tariff property and any security 1010
interest in securitized utility tariff property under this 1011
section in the same manner that the secretary of state 1012
maintains financing statements filed under the code to 1013
perfect a security interest in collateral owned by a 1014
transmitting utility. Except as otherwise provided in this 1015
section, all financing statements filed pursuant to this 1016
section shall be governed by the provis ions regarding 1017
financing statements and the filing thereof under the code, 1018
including part 5 of article 9 of the code. A security 1019
interest in securitized utility tariff property may be 1020
perfected only by the filing of a financing statement in 1021
accordance with this section, and no other method of 1022
perfection shall be effective. Notwithstanding any 1023
provision of the code to the contrary, a financing statement 1024
filed pursuant to this section is effective until a 1025
termination statement is filed under the co de, and no 1026
continuation statement need be filed to maintain its 1027
effectiveness. A financing statement filed pursuant to this 1028
section may indicate that the debtor is a transmitting 1029
utility, and without regard to whether the debtor is an 1030
electrical corporation, an assignee or otherwise qualifies 1031
as a transmitting utility under the code, but the failure to 1032
make such indication shall not impair the duration and 1033
effectiveness of the financing statement. 1034
8. The law governing the validity, enforceabi lity, 1035
attachment, perfection, priority, and exercise of remedies 1036
with respect to the transfer of an interest or right or the 1037
pledge or creation of a security interest in any securitized 1038
utility tariff property shall be the laws of this state. 1039 SB 214 83
9. Neither the state nor its political subdivisions 1040
are liable on any securitized utility tariff bonds, and the 1041
bonds are not a debt or a general obligation of the state or 1042
any of its political subdivisions, agencies, or 1043
instrumentalities, nor are they sp ecial obligations or 1044
indebtedness of the state or any agency or political 1045
subdivision. An issue of securitized utility tariff bonds 1046
does not, directly, indirectly, or contingently, obligate 1047
the state or any agency, political subdivision, or 1048
instrumentality of the state to levy any tax or make any 1049
appropriation for payment of the securitized utility tariff 1050
bonds, other than in their capacity as consumers of 1051
electricity. All securitized utility tariff bonds shall 1052
contain on the face thereof a state ment to the following 1053
effect: "Neither the full faith and credit nor the taxing 1054
power of the state of Missouri is pledged to the payment of 1055
the principal of, or interest on, this bond.". 1056
10. All of the following entities may legally invest 1057
any sinking funds, moneys, or other funds in securitized 1058
utility tariff bonds: 1059
(1) Subject to applicable statutory restrictions on 1060
state or local investment authority, the state, units of 1061
local government, political subdivisions, public bodies, and 1062
public officers, except for members of the commission, the 1063
commission's technical advisory and other staff, or 1064
employees of the office of the public counsel; 1065
(2) Banks and bankers, savings and loan associations, 1066
credit unions, trust companies, savin gs banks and 1067
institutions, investment companies, insurance companies, 1068
insurance associations, and other persons carrying on a 1069
banking or insurance business; 1070 SB 214 84
(3) Personal representatives, guardians, trustees, and 1071
other fiduciaries; 1072
(4) All other persons authorized to invest in bonds or 1073
other obligations of a similar nature. 1074
11. (1) The state and its agencies, including the 1075
commission, pledge and agree with bondholders, the owners of 1076
the securitized utility tariff property, and other financing 1077
parties that the state and its agencies will not take any 1078
action listed in this subdivision. This subdivision does 1079
not preclude limitation or alteration if full compensation 1080
is made by law for the full protection of the securitized 1081
utility tariff charges collected pursuant to a financing 1082
order and of the bondholders and any assignee or financing 1083
party entering into a contract with the electrical 1084
corporation. The prohibited actions are as follows: 1085
(a) Alter the provisions of this s ection, which 1086
authorize the commission to create an irrevocable contract 1087
right or chose in action by the issuance of a financing 1088
order, to create securitized utility tariff property, and 1089
make the securitized utility tariff charges imposed by a 1090
financing order irrevocable, binding, or nonbypassable 1091
charges for all existing and future retail customers of the 1092
electrical corporation except its existing special contract 1093
customers; 1094
(b) Take or permit any action that impairs or would 1095
impair the value of securitized utility tariff property or 1096
the security for the securitized utility tariff bonds or 1097
revises the securitized utility tariff costs for which 1098
recovery is authorized; 1099
(c) In any way impair the rights and remedies of the 1100
bondholders, assignees, and other financing parties; 1101 SB 214 85
(d) Except for changes made pursuant to the formula - 1102
based true-up mechanism authorized under this section, 1103
reduce, alter, or impair securitized utility tariff charges 1104
that are to be imposed, billed, charged, collected, and 1105
remitted for the benefit of the bondholders, any assignee, 1106
and any other financing parties until any and all principal, 1107
interest, premium, financing costs and other fees, expenses, 1108
or charges incurred, and any contracts to be performed, in 1109
connection with the related securitized utility tariff bonds 1110
have been paid and performed in full. 1111
(2) Any person or entity that issues securitized 1112
utility tariff bonds may include the language specified in 1113
this subsection in the securitized utility tariff bonds and 1114
related documentation. 1115
12. An assignee or financing party is not an 1116
electrical corporation or person providing electric service 1117
by virtue of engaging in the transactions described in this 1118
section. 1119
13. If there is a conflict between this section and 1120
any other law regarding the attachment, assignment, or 1121
perfection, or the effect of perfection, or priority of, 1122
assignment or transfer of, or security interest in 1123
securitized utility tariff property, this section shall 1124
govern. 1125
14. If any provision of this section is held invalid 1126
or is invalidated, superseded, replaced, repealed, or 1127
expires for any reason, that occurrence does not affect the 1128
validity of any action allowed under this section which is 1129
taken by an electrical corporation, an assignee, a financing 1130
party, a collection agent, or a party to an ancillary 1131
agreement; and any such action remains in full force and 1132
effect with respect to all securitized utility tariff bonds 1133 SB 214 86
issued or authorized in a fina ncing order issued under this 1134
section before the date that such provision is held invalid 1135
or is invalidated, superseded, replaced, or repealed, or 1136
expires for any reason. 1137
393.1900. 1. The commission shall, by August 28, 1
2026, and every four years or as needed thereafter, commence 2
an integrated resource planning proceeding for electrical 3
corporations. As part of such proceeding, the commission 4
shall: 5
(1) Identify any required planning reserve margins and 6
applicable local clearing requirements, and any proposed 7
planning reserve margins and local clearing requirements 8
which are scheduled to take effect within a relevant future 9
timeframe; 10
(2) Identify significant existing or proposed state or 11
federal environmental re gulations, laws, or rules and 12
identify how each such regulation, law, or rule may apply to 13
electrical corporations in this state; 14
(3) Establish an alternative resource plan or plans 15
that shall be included in an electrical corporation's 16
integrated resource plan filing pursuant to subsection 3 of 17
this section, and the factors that each electrical 18
corporation may take into account in developing such plans, 19
including, but not limited to, all of the following: 20
(a) Projected planning reserve ma rgins and local 21
clearing requirements and the environmental regulations, 22
laws, or rules pursuant to subdivisions (1) and (2) of this 23
subsection, respectively; 24
(b) Projections of future loads including both energy 25
and capacity over the planning pe riod; 26
(c) The supply-side and demand-side resources that may 27
reasonably address any need for additional energy and 28 SB 214 87
capacity, including but not limited to, the type of 29
generation technology for any proposed generation facility, 30
projected load impact due to electrification or economic 31
development projects, and projected load management and 32
demand response savings; 33
(d) The projected cost of different types of 34
technologies and fuel used for electric generation; and 35
(e) Any other factors the commission may order to be 36
considered; 37
(4) Identify or designate any software, data 38
standards, and formatting to be used in modeling the 39
alternative resource plan or plans pursuant to subdivision 40
(3) of this subsection; 41
(5) Complete such proceeding no less than eighteen 42
months prior to the first integrated resource plan filing 43
pursuant to subsection 2 of this section. 44
2. Not later than August 28, 2027, the commission 45
shall publish a schedule for electrical corporations to file 46
an integrated resource plan every four years, with the first 47
integrated resource plan or plans filing to occur not before 48
the first day of the nineteenth month after publication of 49
such schedule. Each electrical corporation shall, pursuant 50
to the published schedule, file with the commission an 51
integrated resource plan that includes an alternative 52
resource plan or plans meeting the requirements of 53
subdivision (3) of subsection 1 of this section, and such 54
other alternative resource plans as the elec trical 55
corporation deems appropriate. All alternative resource 56
plans shall cover a minimum sixteen -year planning horizon. 57
All such plans shall reflect projections of an electrical 58
corporation's load obligations and how under each such plan 59
the electrical corporation would reliably meet its projected 60 SB 214 88
load obligations over such periods consistent with 61
applicable planning reserve margins, local clearing 62
requirements, and applicable state and federal environmental 63
regulations, laws, or rules. 64
3. Without limiting the requirements set forth in 65
subsection 2 of this section, an electrical corporation's 66
integrated resource plan filing shall include: 67
(1) Information regarding generating units in the 68
electrical corporation's existing portfolio , including, but 69
not limited to, unit characteristics, current and expected 70
accredited capacity by season, licensing status, current 71
depreciation rates for each generating unit, currently 72
expected retirement dates and, if applicable, any remaining 73
useful life of each generating unit, and identification of 74
potential capital projects that are reasonably expected to 75
result in the extension of the retirement date of each 76
generating unit; 77
(2) Plans for meeting current and future generation 78
attribute needs, with estimates of the capital and operating 79
and maintenance costs over the planning horizon for all 80
proposed construction and major investments in new 81
generating units, including costs associated with 82
transmission or distribution infrastructu re that would be 83
required to integrate such investments into the electrical 84
corporation's system; 85
(3) Identification of the generation attribute 86
necessary for the provision of safe and adequate service at 87
just and reasonable rates; 88
(4) Analysis of the cost, performance, expected 89
accredited capacity by season, and viability of all 90
reasonable options available to meet projected generation 91
attribute needs, including, but not limited to, existing 92 SB 214 89
electric generation facilities, and an explan ation why an 93
electrical corporation selected the options outlined in the 94
plan; 95
(5) Analysis of alternative resource plans to test 96
risk factors identified by the electrical corporation; 97
(6) An explanation of how the electrical corporation 98
uses capacity expansion optimization software for the 99
development of alternative resource plans; 100
(7) Projections of rate impacts including rate impacts 101
from fuel costs of the top four alternative resource plans 102
including the preferred plan for the p eriods covered by the 103
plan; 104
(8) Forecasts of the electrical corporation's sales by 105
hour under reasonable scenarios; 106
(9) The types of generation technologies proposed for 107
generation facilities contained in the plans and the 108
proposed accredited capacity of the generation facilities as 109
estimated by the corporation and the relevant regional 110
transmission organization or independent system operator, 111
including projected fuel costs under reasonable scenarios; 112
(10) An analysis of potential n ew or upgraded electric 113
transmission and distribution options for the electrical 114
corporation; 115
(11) Analysis of the projected firm gas transportation 116
contracts or natural gas storage the electrical corporation 117
will hold to provide an adequate supp ly of fuel to new 118
generation facilities; 119
(12) Projected load management, demand response 120
impact, and peak demand reduction for the electrical 121
corporation, including but not limited to, the magnitude of 122
expected load impacts during the anticipated hours, seasons, 123
and years and the projected costs for such plans; 124 SB 214 90
(13) An explanation of how the electrical corporation 125
will comply with all applicable state and federal 126
environmental regulations, laws, and rules, and the 127
projected costs of comp lying with those regulations, laws, 128
and rules; 129
(14) Expected resource planning and system impacts of 130
draft programs and mechanisms associated with new load, 131
reduced load, or retained load associated with economic 132
development rates or riders and p rograms offered in 133
accordance with section 393.1075, as well as other programs 134
offered under current law; 135
(15) Results from a request for information or 136
proposals to provide any new supply -side resources needed to 137
serve the corporation's projecte d electric load, applicable 138
planning reserve margin, and local clearing requirement 139
during the initial four -year planning period. The request 140
for information or proposals may define qualifying 141
performance standards, contract terms, technical competenc e, 142
capability, reliability, creditworthiness, past performance, 143
and other criteria that responses or respondents to the 144
request for information shall meet in order to be considered 145
by the corporation in its integrated resource plan. 146
Respondents to a request for information or proposals may 147
request that certain proprietary information be treated as 148
confidential or highly confidential pursuant to the 149
commission's governing rules. A corporation that issues a 150
request for information or proposals unde r this subsection 151
shall use the resulting information or proposals to inform 152
its integrated resource plan and include all of the 153
submitted information or proposals as attachments to its 154
integrated resource plan filing; 155
(16) Selection of a preferr ed resource plan; 156 SB 214 91
(17) Delineation of an implementation plan covering a 157
four-year implementation period ending three hundred sixty - 158
five days after the electrical corporation's next -scheduled 159
quadrennial integrated resource plan filing, which shall 160
specify the construction or acquisition by the utility of 161
specific supply-side resources or a specified quantity of 162
supply-side resources by supply -side resource type, or both, 163
for which construction or acquisition is planned to commence 164
within said four-year implementation period; and 165
(18) Any other information that the commission may 166
specify by rule. 167
4. The commission shall, after a hearing is conducted, 168
issue a report and order no later than three hundred sixty 169
days after the electri cal corporation files an integrated 170
resource plan under this section, unless the commission 171
grants itself an extension for good cause for the issuance 172
of the report and order. Up to one hundred fifty days after 173
an electrical corporation makes its init ial integrated 174
resource plan filing, the electrical corporation may file an 175
update of the cost estimates provided under subdivision (2) 176
of subsection 3 of this section if the cost estimates have 177
materially changed. An electrical corporation shall not 178
modify any other aspect of the initial integrated resource 179
plan filing unless the commission grants the electrical 180
corporation the ability to do so. The commission's report 181
and order shall determine whether the electrical corporation 182
has submitted sufficient documentation and selected a 183
preferred resource plan that represents a reasonable and 184
prudent means of meeting the electrical corporation's load 185
serving obligations at just and reasonable rates. In making 186
the determination, the commission sha ll consider whether the 187
plan appropriately balances all of the following factors: 188 SB 214 92
(a) Resource adequacy to serve anticipated peak 189
electric load and seasonal peak demand forecasts, applicable 190
planning reserve margin, local clearing requirements, an d 191
the role of energy and capacity markets; 192
(b) Reliability; 193
(c) Rate impacts; 194
(d) Overall cost-effectiveness in providing service; 195
(e) Commodity price risks; 196
(f) Diversity of supply-side resources; 197
(g) Competitive pricing; 198
(h) Participation in regional transmission 199
organization markets; and 200
(i) Compliance with applicable state and federal 201
environmental regulations. 202
5. (1) If the commission determines that the 203
preferred resource plan is a reasonabl e and prudent means of 204
meeting the electrical corporation's load serving 205
obligations, such determination shall constitute the 206
commission's permission for the electrical corporation to 207
construct or acquire the specified supply -side resources, or 208
a specified quantity of supply -side resources by supply -side 209
resource type, or both, that were reflected in the 210
implementation plan submitted under subdivision (15) of 211
subsection 3 of this section, provided that construction 212
commences or the acquisition agre ement is executed within 213
the four-year implementation period. With respect to such 214
resources, when the electrical corporation files an 215
application for a certificate of convenience and necessity 216
to authorize construction or acquisition of such resource or 217
resources pursuant to subsection 1 of section 393.170, the 218
commission shall be deemed to have determined that the 219
supply-side resources for which such a determination was 220 SB 214 93
made are necessary or convenient for the public interest. 221
In such a certificate of convenience and necessity 222
proceeding, the commission's inquiry shall be limited to 223
considering the electrical corporation's qualifications to 224
construct and operate the resources, the electrical 225
corporation's ability to finance the construction or 226
acquisition of the resources, and siting considerations. 227
The commission shall take all reasonable steps to expedite 228
such a certificate of convenience and necessity proceeding 229
and shall issue its decision in such a proceeding within one 230
hundred twenty days of the date that the electrical 231
corporation files its application. An electrical 232
corporation shall annually, or more frequently if required 233
by the commission, report to the commission the status of 234
supply-side resources being implemented duri ng the 235
implementation period. 236
(2) If the commission determines that the preferred 237
resource plan, in whole or in part, is not a reasonable and 238
prudent means of meeting the electrical corporation's load 239
serving obligations, the commission shall hav e the authority 240
to specify in its report and order the deficiencies in the 241
preferred resource plan and may require the electrical 242
corporation to make a further filing within sixty days after 243
issuance of the report and order addressing the deficiencies 244
and the electrical corporation may propose modifications to 245
its original preferred resource plan. If such an order 246
requiring a further filing by the electrical corporation is 247
issued, the commission's report and order issued under this 248
subsection shall not be final for purposes of rehearing 249
pursuant to section 386.500 or an appeal pursuant to section 250
386.510. Other parties to the integrated resource plan 251
docket shall have sixty days to respond to the electrical 252 SB 214 94
corporation's further filing, unless the commission grants 253
an extension for good cause to respond to the electrical 254
corporation's further filing. Within sixty days after the 255
deadline for such other parties' filings, the commission 256
shall issue a report and order, which shall be final for 257
purposes of rehearing pursuant to section 386.500, and 258
appeal pursuant to section 386.510, indicating whether the 259
deficiencies have been cured by the electrical corporation's 260
further filing and the commission may approve the electrical 261
corporation's modified preferred resource plan and may 262
approve specific supply -side resources, or a specified 263
quantity of supply-side resources by supply -side resource 264
type, or both. If the commission finds continued 265
deficiencies in the electrical corporation's modi fied 266
preferred resource plan: 267
(a) The commission may initiate a complaint proceeding 268
pursuant to the provisions of section 393.270; 269
(b) The electrical corporation shall not be eligible 270
for a limited inquiry in any proceeding under section 271
393.170 as set forth in subdivision (1) of this subsection 272
for any resource additions not approved by the commission; 273
and 274
(c) The electrical corporation shall not be eligible 275
for construction work in progress as set forth in 276
subdivision (3) of thi s subsection for any resource 277
additions not approved by the commission. 278
(3) Notwithstanding section 393.135 to the contrary, 279
if approved in a proceeding granting permission and approval 280
under subsection 1 of section 393.170, an electrical 281
corporation may be permitted to include in the corporation's 282
rate base any amounts recorded to construction work in 283
progress for the investments for which permission is given 284 SB 214 95
under subdivision (1) of subsection 5 of this section. The 285
inclusion of constructio n work in progress shall be in lieu 286
of any otherwise applicable allowance for funds used during 287
construction that would have accrued from and after the 288
effective date of new base rates that reflect inclusion of 289
the construction work in progress in rate base. The 290
commission shall determine, in a proceeding under section 291
393.170, the amount of construction work in progress that 292
may be included in rate base. The amount shall be limited 293
by: 294
(a) The estimated cost of such project; and 295
(b) Project expenditures made within the estimated 296
construction period for such project. Base rate recoveries 297
arising from inclusion of construction work in progress in 298
base rates are subject to refund, together with interest on 299
the refunded amount at the same rate as the rate of interest 300
for delinquent taxes determined by the director of revenue 301
in accordance with section 32.065, if and to the extent the 302
commission determines, in a subsequent complaint or general 303
rate proceeding, that construction cost s giving rise to the 304
construction work in progress included in rate base were 305
imprudently incurred. Return deferred under subdivision (2) 306
of subsection 3 of section 393.1400 for plant that has been 307
included in base rates as construction work in progre ss 308
shall offset the amounts deferred under section 393.1400. 309
6. The commission shall promulgate rules necessary to 310
implement the provisions of this section. Any rule or 311
portion of a rule, as that term is defined in section 312
536.010, that is creat ed under the authority delegated in 313
this section shall become effective only if it complies with 314
and is subject to all of the provisions of chapter 536 and, 315
if applicable, section 536.028. This section and chapter 316 SB 214 96
536 are nonseverable and if any of th e powers vested with 317
the general assembly pursuant to chapter 536 to review, to 318
delay the effective date, or to disapprove and annul a rule 319
are subsequently held unconstitutional, then the grant of 320
rulemaking authority and any rule proposed or adopted after 321
August 28, 2025, shall be invalid and void. 322
7. As used in this section, the following terms shall 323
mean: 324
(1) "Firm gas transportation", an anticipated 325
agreement entered into between the electrical corporation 326
and a natural gas transmis sion provider for a set period of 327
time to provide firm delivery of natural gas to an electric 328
generation facility; 329
(2) "Generation attribute", the capacity, energy, and 330
other generating unit capabilities used in regional energy 331
and capacity markets to differentiate services that can be 332
provided by various types of generating units. 333
523.010. 1. In case land, or other property, is 1
sought to be appropriated by any road, railroad, street 2
railway, telephone, telegraph or any ele ctrical corporation 3
organized for the manufacture or transmission of electric 4
current for light, heat or power, including the 5
construction, when that is the case, of necessary dams and 6
appurtenant canals, flumes, tunnels and tailraces and 7
including the erection, when that is the case, of necessary 8
electric steam powerhouses, hydroelectric powerhouses and 9
electric substations or any oil, pipeline or gas corporation 10
engaged in the business of transporting or carrying oil, 11
liquid fertilizer solutions, or gas by means of pipes or 12
pipelines laid underneath the surface of the ground, or 13
other corporation created under the laws of this state for 14
public use, and such corporation and the owners cannot agree 15 SB 214 97
upon the proper compensation to be paid, or in the case the 16
owner is incapable of contracting, be unknown, or be a 17
nonresident of the state, such corporation may apply to the 18
circuit court of the county of this state where such land or 19
any part thereof lies by petition setting forth the general 20
directions in which it is desired to construct its road, 21
railroad, street railway, telephone, or telegraph line or 22
electric line, including, when that is the case, the 23
construction and maintenance of necessary dams and 24
appurtenant canals, tunnels, flumes and tailraces and, when 25
that is the case, the appropriation of land submerged by the 26
construction of such dam, and including the erection and 27
maintenance, when that is the case, of necessary electric 28
steam powerhouses, hydroelectric powerhouses and el ectric 29
substations, or oil, pipeline, liquid fertilizer solution 30
pipeline, or gas line over or underneath the surface of such 31
lands, a description of the real estate, or other property, 32
which the company seeks to acquire; the names of the owners 33
thereof, if known; or if unknown, a pertinent description of 34
the property whose owners are unknown and praying the 35
appointment of three disinterested residents of the county, 36
as commissioners, or a jury, to assess the damages which 37
such owners may severally sustain in consequence of the 38
establishment, erection and maintenance of such road, 39
railroad, street railway, telephone, telegraph line, or 40
electrical line including damages from the construction and 41
maintenance of necessary dams and the condemnation of land 42
submerged thereby, and the construction and maintenance of 43
appurtenant canals, flumes, tunnels and tailraces and the 44
erection and maintenance of necessary electric steam 45
powerhouses, hydroelectric powerhouses and electric 46
substations, or oil, pipeline, or gas line over or 47 SB 214 98
underneath the surface of such lands; to which petition the 48
owners of any or all as the plaintiff may elect of such 49
parcels as lie within the county or circuit may be made 50
parties defendant by names if the names are known, and by 51
the description of the unknown owners of the land therein 52
described if their names are unknown. 53
2. If the proceedings seek to affect the lands of 54
persons under conservatorship, the conservators must be made 55
parties defendant. If the present owner of any land to be 56
affected has less estate than a fee, the person having the 57
next vested estate in remainder may at the option of the 58
petitioners be made party defendant; but if such 59
remaindermen are not made parties, their interest shall not 60
be bound by the proceedings. 61
3. It shall not be necessary to make any persons party 62
defendants in respect to their ownership unless they are 63
either in actual possession of the premises to be affected 64
claiming title or having a title of the premi ses appearing 65
of record upon the proper records of the county. 66
4. Except as provided in subsection 5 of this section, 67
nothing in this chapter shall be construed to give a public 68
utility, as defined in section 386.020, or a rural electric 69
cooperative, as provided in chapter 394, the power to 70
condemn property which is currently used by another provider 71
of public utility service, including a municipality or a 72
special purpose district, when such property is used or 73
useful in providing utility serv ices, if the public utility 74
or cooperative seeking to condemn such property, directly or 75
indirectly, will use or proposes to use the property for the 76
same purpose, or a purpose substantially similar to the 77
purpose for which the property is being used b y the provider 78
of the public utility service. 79 SB 214 99
5. A public utility or a rural electric cooperative 80
may only condemn the property of another provider of public 81
utility service, even if the property is used or useful in 82
providing utility services by such provider, if the 83
condemnation is necessary for the public purpose of 84
acquiring a nonexclusive easement or right -of-way across the 85
property of such provider and only if the acquisition will 86
not materially impair or interfere with the current use o f 87
such property by the utility or cooperative and will not 88
prevent or materially impair such provider of public utility 89
service from any future expansion of its facilities on such 90
property. 91
6. If a public utility or rural electric cooperative 92
seeks to condemn the property of another provider of public 93
utility service, and the conditions in subsection 4 of this 94
section do not apply, this section does not limit the 95
condemnation powers otherwise possessed by such public 96
utility or rural electric cooperative. 97
7. Suits in inverse condemnation or involving 98
dangerous conditions of public property against a municipal 99
corporation established under Article VI, Section 30(a) of 100
the Missouri Constitution shall be brought only in the 101
county where such land or any part thereof lies. 102
8. For purposes of this chapter, the authority for an 103
electrical corporation as defined in section 386.020, except 104
for an electrical corporation operating under a cooperative 105
business plan as described in secti on 393.110, to condemn 106
property for purposes of constructing an electric plant 107
subject to a certificate of public convenience and necessity 108
under subsection 1 of section 393.170 shall not extend to 109
the construction of a merchant transmission line with 110
Federal Energy Regulatory Commission negotiated rate 111 SB 214 100
authority unless such line has a substation or converter 112
station located in Missouri which is capable of delivering 113
an amount of its electrical capacity to electrical customers 114
in this state that is greater than or equal to the 115
proportionate number of miles of the line that passes 116
through the state. The provisions of this subsection shall 117
not apply to applications filed pursuant to section 393.170 118
prior to August 28, 2022. 119
9. For the purposes of this chapter, the authority of 120
any corporation set forth in subsection 1 of this section to 121
condemn property shall not extend to: 122
(1) The construction or erection of any plant, tower, 123
panel, or facility that utilizes, captures, or converts wind 124
or air currents to generate or manufacture electricity; or 125
(2) The construction or erection of any plant, tower, 126
panel, or facility that utilizes, captures, or converts the 127
light or heat generated by the sun to generate or 128
manufacture electricity. 129
10. Subject to the provisions of subsection 8 of this 130
section, but notwithstanding the provisions of subsection 9 131
of this section to the contrary, the authority of any 132
corporation set forth in subsection 1 of this section to 133
condemn property shall extend to acquisition of rights 134
needed to construct, operate, and maintain collection lines, 135
distribution lines, transmission lines, communications 136
lines, substations, switchyards, and other facilities needed 137
to collect and deliver energy gen erated or manufactured by 138
the facilities described in subsection 9 of this section to 139
the distribution or transmission grid. 140
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