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Missouri Senate Bill SB48

Missouri 2025 Regular Session

Missouri Senate Bill SB48 Compare Versions

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22 FIRST REGULAR SESSION
33 SENATE BILL NO. 48
44 103RD GENERAL ASSEMBLY
55 INTRODUCED BY SENATOR TRENT.
66 0870S.01I KRISTINA MARTIN, Secretary
77 AN ACT
88 To repeal section 393.135, RSMo, and to enact in lieu thereof two new sections relating to
99 electrical corporations regulated by the Missouri public service commission.
1010
1111 Be it enacted by the General Assembly of the State of Missouri, as follows:
1212 Section A. Section 393.135, RSMo, is repealed and two new 1
1313 sections enacted in lieu thereof, to be known as sections 2
1414 393.135 and 393.1900, to read as follows:3
1515 393.135. 1. Except as provided in subsection 2 of 1
1616 this section, any charge made or demand ed by an electrical 2
1717 corporation for service, or in connection therewith, which 3
1818 is based on the costs of construction in progress upon any 4
1919 existing or new facility of the electrical corporation, or 5
2020 any other cost associated with owning, operating, 6
2121 maintaining, or financing any property before it is fully 7
2222 operational and used for service, is unjust and 8
2323 unreasonable, and is prohibited. 9
2424 2. (1) An electrical corporation shall be permitted, 10
2525 subject to the limitations provided for in this subsection , 11
2626 to include any amounts recorded to construction work in 12
2727 progress for any new natural gas generating unit in the 13
2828 corporation's ratemaking rate base. The inclusion of 14
2929 construction work in progress allowed under this subsection 15
3030 shall be in lieu of any otherwise applicable allowance for 16
3131 funds used during construction that would have accrued from 17
3232 and after the effective date of new base rates that reflect 18 SB 48 2
3333 inclusion of the construction work in progress in rate 19
3434 base. The commission shall determine, in a proceeding under 20
3535 section 393.170, the amount of construction work in progress 21
3636 that may be included in rate base. The amount shall be 22
3737 limited by: 23
3838 (a) The estimated cost of such project; and 24
3939 (b) Project expenditures made within the estimat ed 25
4040 construction period for such project. 26
4141 Base rate recoveries arising from inclusion of construction 27
4242 work in progress in base rates are subject to refund, 28
4343 together with interest on the refunded amount at the same 29
4444 rate as the rate of interest for delinq uent taxes determined 30
4545 by the director of revenue in accordance with section 31
4646 32.065, if and to the extent the commission determines, in a 32
4747 subsequent complaint or general rate proceeding, that 33
4848 construction costs giving rise to the construction work in 34
4949 progress included in rate base were imprudently incurred. 35
5050 Return deferred under subdivision (2) of subsection 3 of 36
5151 section 393.1400 for plant that has been included in base 37
5252 rates as construction work in progress shall offset the 38
5353 amounts deferred under section 393.1400. 39
5454 (2) Provisions of this subsection shall expire on 40
5555 December 31, 2035, unless the commission determines, after a 41
5656 hearing conducted in 2035 upon a submission from an 42
5757 electrical corporation of an application requesting an 43
5858 extension, that good cause exists to extend the provisions 44
5959 of this subsection through December 31, 2045. The secretary 45
6060 of the commission shall notify the revisor of statutes when 46
6161 the conditions set forth for the extension of this 47
6262 subsection have been met. 48 SB 48 3
6363 393.1900. 1. The commission shall, by August 28, 1
6464 2026, and every four years or as needed thereafter, commence 2
6565 an integrated resource planning proceeding for electrical 3
6666 corporations. As part of such proceeding, the commission 4
6767 shall: 5
6868 (1) Identify any required planning reserve margins and 6
6969 applicable local clearing requirements, and any proposed 7
7070 planning reserve margins and local clearing requirements 8
7171 which are scheduled to take effect within a relevant future 9
7272 timeframe; 10
7373 (2) Identify significant existing or proposed state or 11
7474 federal environmental regulations, laws, or rules and 12
7575 identify how each such regulation, law, or rule may apply to 13
7676 electrical corporations in this state; 14
7777 (3) Establish an alternative resour ce plan or plans 15
7878 that shall be included in an electrical corporation's 16
7979 integrated resource plan filing pursuant to subsection 3 of 17
8080 this section, and the factors that each electrical 18
8181 corporation may take into account in developing such plans, 19
8282 including, but not limited to, all of the following: 20
8383 (a) Projected planning reserve margins and local 21
8484 clearing requirements and the environmental regulations, 22
8585 laws, or rules pursuant to subdivisions (1) and (2) of this 23
8686 subsection, respectively; 24
8787 (b) Projections of future loads, including both energy 25
8888 and capacity, over the planning period; 26
8989 (c) The supply-side and demand-side resources that may 27
9090 reasonably address any need for additional energy and 28
9191 capacity, including, but not limited to, the typ e of 29
9292 generation technology for any proposed generation facility, 30
9393 projected load impact due to electrification or economic 31 SB 48 4
9494 development projects, and projected load management and 32
9595 demand response savings; 33
9696 (d) The projected cost of different types o f 34
9797 technologies and fuel used for electric generation; and 35
9898 (e) Any other factors the commission may order to be 36
9999 considered; 37
100100 (4) Identify or designate any software, data 38
101101 standards, and formatting to be used in modeling the 39
102102 alternative resource plan or plans pursuant to subdivision 40
103103 (3) of this subsection; 41
104104 (5) Complete such proceeding no less than eighteen 42
105105 months prior to the first integrated resource plan filing 43
106106 pursuant to subsection 2 of this section. 44
107107 2. Not later than August 2 8, 2027, the commission 45
108108 shall publish a schedule for electrical corporations to file 46
109109 an integrated resource plan every four years, with the first 47
110110 integrated resource plan or plans filing to occur not before 48
111111 the first day of the nineteenth month after p ublication of 49
112112 such schedule. Each electrical corporation shall, pursuant 50
113113 to the published schedule, file with the commission an 51
114114 integrated resource plan that includes an alternative 52
115115 resource plan or plans meeting the requirements of 53
116116 subdivision (3) of subsection 1 of this section, and such 54
117117 other alternative resource plans as the electrical 55
118118 corporation deems appropriate. All alternative resource 56
119119 plans shall cover a minimum sixteen -year planning horizon. 57
120120 All such plans shall reflect projections of an electrical 58
121121 corporation's load obligations and how under each such plan 59
122122 the electrical corporation would reliably meet its projected 60
123123 load obligations over such periods consistent with 61
124124 applicable planning reserve margins, local clearing 62 SB 48 5
125125 requirements, and applicable state and federal environmental 63
126126 regulations, laws, or rules. 64
127127 3. Without limiting the requirements set forth in 65
128128 subsection 2 of this section, an electrical corporation's 66
129129 integrated resource plan filing shall include: 67
130130 (1) Information regarding generating units in the 68
131131 electrical corporation's existing portfolio, including, but 69
132132 not limited to, unit characteristics, current and expected 70
133133 accredited capacity by season, licensing status, current 71
134134 depreciation rates for each genera ting unit, currently 72
135135 expected retirement dates and, if applicable, any remaining 73
136136 useful life of each generating unit, and identification of 74
137137 potential capital projects that are reasonably expected to 75
138138 result in the extension of the retirement date of eac h 76
139139 generating unit; 77
140140 (2) Plans for meeting current and future generation 78
141141 attribute needs, with estimates of the capital and operating 79
142142 and maintenance costs over the planning horizon for all 80
143143 proposed construction and major investments in new 81
144144 generating units, including costs associated with 82
145145 transmission or distribution infrastructure that would be 83
146146 required to integrate such investments into the electrical 84
147147 corporation's system; 85
148148 (3) Identification of the generation attribute 86
149149 necessary for the provision of safe and adequate service at 87
150150 just and reasonable rates; 88
151151 (4) Analysis of the cost, performance, expected 89
152152 accredited capacity by season, and viability of all 90
153153 reasonable options available to meet projected generation 91
154154 attribute needs, including, but not limited to, existing 92
155155 electric generation facilities, and an explanation why an 93 SB 48 6
156156 electrical corporation selected the options outlined in the 94
157157 plan; 95
158158 (5) Analysis of alternative resource plans to test 96
159159 risk factors identified by the electrical corporation; 97
160160 (6) An explanation of how the electrical corporation 98
161161 uses capacity expansion optimization software for the 99
162162 development of alternative resource plans; 100
163163 (7) Projections of rate impacts including rate impacts 101
164164 from fuel costs of the top four alternative resource plans 102
165165 including the preferred plan for the periods covered by the 103
166166 plan; 104
167167 (8) Forecasts of the electrical corporation's sales by 105
168168 hour under reasonable scenarios; 106
169169 (9) The types of generation technologies proposed for 107
170170 generation facilities contained in the plans and the 108
171171 proposed accredited capacity of the generation facilities as 109
172172 estimated by the corporation and the relevant regional 110
173173 transmission organization or independent system operator, 111
174174 including projected fuel costs under reasonable scenarios; 112
175175 (10) An analysis of potential new or upgraded electric 113
176176 transmission and distribution options for the electrical 114
177177 corporation; 115
178178 (11) Analysis of the projected firm gas transportation 116
179179 contracts or natural gas storage the electrical corporation 117
180180 will hold to provide an adequate supply of fuel to new 118
181181 generation facilities; 119
182182 (12) Projected load management, demand response 120
183183 impact, and peak demand reduction for the electrical 121
184184 corporation, including, but not limited to, the magnitude of 122
185185 expected load impacts during the anticipated hours, seasons, 123
186186 and years and the projected costs for such plans; 124 SB 48 7
187187 (13) An explanation of how the electrical corporation 125
188188 will comply with all applicable state an d federal 126
189189 environmental regulations, laws, and rules, and the 127
190190 projected costs of complying with those regulations, laws, 128
191191 and rules; 129
192192 (14) Expected resource planning and system impacts of 130
193193 draft programs and mechanisms associated with new load, 131
194194 reduced load, or retained load associated with economic 132
195195 development rates or riders and programs offered in 133
196196 accordance with section 393.1075, as well as other programs 134
197197 offered under current law; 135
198198 (15) Results from a request for information or 136
199199 proposals to provide any new supply -side resources needed to 137
200200 serve the corporation's projected electric load, applicable 138
201201 planning reserve margin, and local clearing requirement 139
202202 during the initial four -year planning period. The request 140
203203 for information or prop osals may define qualifying 141
204204 performance standards, contract terms, technical competence, 142
205205 capability, reliability, creditworthiness, past performance, 143
206206 and other criteria that responses or respondents to the 144
207207 request for information shall meet in order to be considered 145
208208 by the corporation in its integrated resource plan. 146
209209 Respondents to a request for information or proposals may 147
210210 request that certain proprietary information be treated as 148
211211 confidential or highly confidential pursuant to the 149
212212 commission's governing rules. A corporation that issues a 150
213213 request for information or proposals under this subsection 151
214214 shall use the resulting information or proposals to inform 152
215215 its integrated resource plan and include all of the 153
216216 submitted information or proposals as attachments to its 154
217217 integrated resource plan filing; 155
218218 (16) Selection of a preferred resource plan; 156 SB 48 8
219219 (17) Delineation of an implementation plan covering a 157
220220 four-year implementation period ending three hundred sixty - 158
221221 five days after the electrical corporation's next-scheduled 159
222222 quadrennial integrated resource plan filing, which shall 160
223223 specify the construction or acquisition by the utility of 161
224224 specific supply-side resources or a specified quantity of 162
225225 supply-side resources by supply -side resource type, or both, 163
226226 for which construction or acquisition is planned to commence 164
227227 within said four-year implementation period; and 165
228228 (18) Any other information that the commission may 166
229229 specify by rule. 167
230230 4. The commission shall, after a hearing is conduct ed, 168
231231 issue a report and order no later than three hundred sixty 169
232232 days after the electrical corporation files an integrated 170
233233 resource plan under this section, unless the commission 171
234234 grants itself an extension for good cause for the issuance 172
235235 of the report and order. Up to one hundred fifty days after 173
236236 an electrical corporation makes its initial integrated 174
237237 resource plan filing, the electrical corporation may file an 175
238238 update of the cost estimates provided under subdivision (2) 176
239239 of subsection 3 of this sectio n if the cost estimates have 177
240240 materially changed. An electrical corporation shall not 178
241241 modify any other aspect of the initial integrated resource 179
242242 plan filing unless the commission grants the electrical 180
243243 corporation the ability to do so. The commission's report 181
244244 and order shall determine whether the electrical corporation 182
245245 has submitted sufficient documentation and selected a 183
246246 preferred resource plan that represents a reasonable and 184
247247 prudent means of meeting the electrical corporation's load 185
248248 serving obligations at just and reasonable rates. In making 186
249249 the determination, the commission shall consider whether the 187
250250 plan appropriately balances all of the following factors: 188 SB 48 9
251251 (a) Resource adequacy to serve anticipated peak 189
252252 electric load and seasonal peak demand forecasts, applicable 190
253253 planning reserve margin, local clearing requirements, and 191
254254 the role of energy and capacity markets; 192
255255 (b) Reliability; 193
256256 (c) Rate impacts; 194
257257 (d) Overall cost-effectiveness in providing service; 195
258258 (e) Commodity price risks; 196
259259 (f) Diversity of supply-side resources; 197
260260 (g) Competitive pricing; 198
261261 (h) Participation in regional transmission 199
262262 organization markets; and 200
263263 (i) Compliance with applicable state and federal 201
264264 environmental regulations. 202
265265 5. (1) If the commission determines that the 203
266266 preferred resource plan is a reasonable and prudent means of 204
267267 meeting the electrical corporation's load serving 205
268268 obligations, such determination shall constitute the 206
269269 commission's permission for the electric al corporation to 207
270270 construct or acquire the specified supply -side resources, or 208
271271 a specified quantity of supply -side resources by supply -side 209
272272 resource type, or both, that were reflected in the 210
273273 implementation plan submitted under subdivision (15) of 211
274274 subsection 3 of this section, provided that construction 212
275275 commences or the acquisition agreement is executed within 213
276276 the four-year implementation period. With respect to such 214
277277 resources, when the electrical corporation files an 215
278278 application for a certificate of convenience and necessity 216
279279 to authorize construction or acquisition of such resource or 217
280280 resources pursuant to subsection 1 of section 393.170, the 218
281281 commission shall be deemed to have determined that the 219
282282 supply-side resources for which such a determina tion was 220 SB 48 10
283283 made are necessary or convenient for the public interest. 221
284284 In such a certificate of convenience and necessity 222
285285 proceeding, the commission's inquiry shall be limited to 223
286286 considering the electrical corporation's qualifications to 224
287287 construct and operate the resources, the electrical 225
288288 corporation's ability to finance the construction or 226
289289 acquisition of the resources, and siting considerations. 227
290290 The commission shall take all reasonable steps to expedite 228
291291 such a certificate of convenience and necessit y proceeding 229
292292 and shall issue its decision in such a proceeding within one 230
293293 hundred twenty days of the date that the electrical 231
294294 corporation files its application. An electrical 232
295295 corporation shall annually, or more frequently if required 233
296296 by the commission, report to the commission the status of 234
297297 supply-side resources being implemented during the 235
298298 implementation period. 236
299299 (2) If the commission determines that the preferred 237
300300 resource plan, in whole or in part, is not a reasonable and 238
301301 prudent means of meeting the electrical corporation's load 239
302302 serving obligations, the commission shall have the authority 240
303303 to specify in its report and order the deficiencies in the 241
304304 preferred resource plan and may require the electrical 242
305305 corporation to make a further filing within sixty days after 243
306306 issuance of the report and order addressing the deficiencies 244
307307 and the electrical corporation may propose modifications to 245
308308 its original preferred resource plan. If such an order 246
309309 requiring a further filing by the electrical corpo ration is 247
310310 issued, the commission's report and order issued under this 248
311311 subsection shall not be final for purposes of rehearing 249
312312 pursuant to section 386.500 or an appeal pursuant to section 250
313313 386.510. Other parties to the integrated resource plan 251
314314 docket shall have sixty days to respond to the electrical 252 SB 48 11
315315 corporation's further filing, unless the commission grants 253
316316 an extension for good cause to respond to the electrical 254
317317 corporation's further filing. Within sixty days after the 255
318318 deadline for such other par ties' filings, the commission 256
319319 shall issue a report and order, which shall be final for 257
320320 purposes of rehearing pursuant to section 386.500, and 258
321321 appeal pursuant to section 386.510, indicating whether the 259
322322 deficiencies have been cured by the electrical corp oration's 260
323323 further filing and the commission may approve the electrical 261
324324 corporation's modified preferred resource plan and may 262
325325 approve specific supply -side resources, or a specified 263
326326 quantity of supply-side resources by supply -side resource 264
327327 type, or both. If the commission finds continued 265
328328 deficiencies in the electrical corporation's modified 266
329329 preferred resource plan: 267
330330 (a) The commission may initiate a complaint proceeding 268
331331 pursuant to the provisions of section 393.270; 269
332332 (b) The electrical corporation shall not be eligible 270
333333 for a limited inquiry in any proceeding under section 271
334334 393.170 as set forth in subdivision (1) of this subsection 272
335335 for any resource additions not approved by the commission; 273
336336 and 274
337337 (c) The electrical corporation shall no t be eligible 275
338338 for construction work in progress as set forth in 276
339339 subdivision (3) of this subsection for any resource 277
340340 additions not approved by the commission. 278
341341 (3) Notwithstanding section 393.135 to the contrary, 279
342342 if approved in a proceeding grantin g permission and approval 280
343343 under subsection 1 of section 393.170, an electrical 281
344344 corporation may be permitted to include in the corporation's 282
345345 rate base any amounts recorded to construction work in 283
346346 progress for the investments for which permission is give n 284 SB 48 12
347347 under subdivision (1) of subsection 5 of this section. The 285
348348 inclusion of construction work in progress shall be in lieu 286
349349 of any otherwise applicable allowance for funds used during 287
350350 construction that would have accrued from and after the 288
351351 effective date of new base rates that reflect inclusion of 289
352352 the construction work in progress in rate base. The 290
353353 commission shall determine, in a proceeding under section 291
354354 393.170, the amount of construction work in progress that 292
355355 may be included in rate base. The amount shall be limited 293
356356 by: 294
357357 (a) The estimated cost of such project; and 295
358358 (b) Project expenditures made within the estimated 296
359359 construction period for such project. Base rate recoveries 297
360360 arising from inclusion of construction work in progress in 298
361361 base rates are subject to refund, together with interest on 299
362362 the refunded amount at the same rate as the rate of interest 300
363363 for delinquent taxes determined by the director of revenue 301
364364 in accordance with section 32.065, if and to the extent the 302
365365 commission determines, in a subsequent complaint or general 303
366366 rate proceeding, that construction costs giving rise to the 304
367367 construction work in progress included in rate base were 305
368368 imprudently incurred. Return deferred under subdivision (2) 306
369369 of subsection 3 of section 393.1400 for plant that has been 307
370370 included in base rates as construction work in progress 308
371371 shall offset the amounts deferred under section 393.1400. 309
372372 6. The commission shall promulgate rules necessary to 310
373373 implement the provisions of this section. Any rule or 311
374374 portion of a rule, as that term is defined in section 312
375375 536.010, that is created under the authority delegated in 313
376376 this section shall become effective only if it complies with 314
377377 and is subject to all of the provisions of chapter 536 and, 315
378378 if applicable, section 536.028. This section and chapter 316 SB 48 13
379379 536 are nonseverable and if any of the powers vested with 317
380380 the general assembly pursuant to chapter 536 to review, to 318
381381 delay the effective date, or to disapprove and annul a rule 319
382382 are subsequently held unc onstitutional, then the grant of 320
383383 rulemaking authority and any rule proposed or adopted after 321
384384 August 28, 2025, shall be invalid and void. 322
385385 7. As used in this section, the following terms shall 323
386386 mean: 324
387387 (1) "Firm gas transportation", an anticipate d 325
388388 agreement entered into between the electrical corporation 326
389389 and a natural gas transmission provider for a set period of 327
390390 time to provide firm delivery of natural gas to an electric 328
391391 generation facility; 329
392392 (2) "Generation attribute", the capacity, ene rgy, and 330
393393 other generating unit capabilities used in regional energy 331
394394 and capacity markets to differentiate services that can be 332
395395 provided by various types of generating units. 333
396396