FIRST REGULAR SESSION
SENATE BILL NO. 48
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR TRENT.
0870S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 393.135, RSMo, and to enact in lieu thereof two new sections relating to
electrical corporations regulated by the Missouri public service commission.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 393.135, RSMo, is repealed and two new 1
sections enacted in lieu thereof, to be known as sections 2
393.135 and 393.1900, to read as follows:3
393.135. 1. Except as provided in subsection 2 of 1
this section, any charge made or demand ed 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 corporation 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 SB 48 2
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 estimat ed 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
together with interest on the refunded amount at the same 29
rate as the rate of interest for delinq uent 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 base 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 submission 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 SB 48 3
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 regulations, 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 resour ce 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 margins 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 period; 26
(c) The supply-side and demand-side resources that may 27
reasonably address any need for additional energy and 28
capacity, including, but not limited to, the typ e of 29
generation technology for any proposed generation facility, 30
projected load impact due to electrification or economic 31 SB 48 4
development projects, and projected load management and 32
demand response savings; 33
(d) The projected cost of different types o f 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 2 8, 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 p ublication 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 electrical 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
load obligations over such periods consistent with 61
applicable planning reserve margins, local clearing 62 SB 48 5
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 genera ting 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 eac h 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 infrastructure 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
electric generation facilities, and an explanation why an 93 SB 48 6
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 periods 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 new 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 supply 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 48 7
(13) An explanation of how the electrical corporation 125
will comply with all applicable state an d federal 126
environmental regulations, laws, and rules, and the 127
projected costs of complying 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 programs 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 projected 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 prop osals may define qualifying 141
performance standards, contract terms, technical competence, 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 under 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 preferred resource plan; 156 SB 48 8
(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 conduct ed, 168
issue a report and order no later than three hundred sixty 169
days after the electrical 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 initial 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 sectio n 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 shall consider whether the 187
plan appropriately balances all of the following factors: 188 SB 48 9
(a) Resource adequacy to serve anticipated peak 189
electric load and seasonal peak demand forecasts, applicable 190
planning reserve margin, local clearing requirements, and 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 reasonable 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 electric al 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 agreement 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 determina tion was 220 SB 48 10
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 necessit y 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 during 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 have 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 corpo ration 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 48 11
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 par ties' 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 corp oration'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 modified 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 no t be eligible 275
for construction work in progress as set forth in 276
subdivision (3) of this 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 grantin g 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 give n 284 SB 48 12
under subdivision (1) of subsection 5 of this section. The 285
inclusion of construction 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 costs 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 progress 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 created 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 48 13
536 are nonseverable and if any of the 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 unc onstitutional, 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 anticipate d 325
agreement entered into between the electrical corporation 326
and a natural gas transmission 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, ene rgy, 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