Missouri 2025 Regular Session

Missouri Senate Bill SB487 Latest Draft

Bill / Introduced Version Filed 12/12/2024

                             
FIRST REGULAR SESSION 
SENATE BILL NO. 487 
103RD GENERAL ASSEMBLY  
INTRODUCED BY SENATOR SCHROER. 
1580S.01I 	KRISTINA MARTIN, Secretary  
AN ACT 
To amend chapter 393, RSMo, by adding thereto thirteen new sections relating to a competitive 
retail electricity market. 
 
Be it enacted by the General Assembly of the State of Missouri, as follows: 
     Section A.  Chapter 393, RSMo, is amended by adding thereto 1 
thirteen new sections, to be known as sections 393.2000, 2 
393.2003, 393.2006, 393.2009, 393.2012, 393.2015, 393.2018, 3 
393.2021, 393.2024, 393.2027, 393.2030, 393.2033, and 393.2036, 4 
to read as follows:5 
     393.2000.  1. Sections 393.2000 to 393.2036 shall be 1 
known and may be cited as "The Electrical Choice and 2 
Competition Law". 3 
     2.  Consistent with the timelines established in 4 
section 393.2006, the provisions of sections 393.2000 to 5 
393.2036 shall govern the sale of electric ener gy in the  6 
state of Missouri and any provision of law that conflicts 7 
with the provisions of sections 393.2000 to 393.2036 shall 8 
be null and void. 9 
     3.  For purposes of sections 393.2000 to 393.2036, the 10 
commission shall promulgate rules to implement the  11 
provisions in sections 393.2000 to 393.2036.  Any rule or  12 
portion of a rule, as that term is defined in section 13 
536.010, that is created under the authority delegated in 14 
this section shall become effective only if it complies with 15 
and is subject to all of the provisions of chapter 536 and, 16   SB 487 	2 
if applicable, section 536.028.  This section and chapter 17 
536 are nonseverable and if any of the powers vested with 18 
the general assembly pursuant to chapter 536 to review, to 19 
delay the effective date, or to d isapprove and annul a rule 20 
are subsequently held unconstitutional, then the grant of 21 
rulemaking authority and any rule proposed or adopted after 22 
August 28, 2025, shall be invalid and void. 23 
     393.2003.  As used in sections 393.2000 to 39 3.2036,  1 
the following terms shall mean: 2 
     (1)  "Aggregation program", a grouping of retail 3 
customers into a buying group to purchase energy generation 4 
services in bulk from a retail electric supplier; 5 
     (2)  "Anticompetitive conduct" or "discrimin atory  6 
conduct", actions by an electric utility that inhibit the 7 
ability of retail electric suppliers to provide electric 8 
supply to retail customers or that create an impression that 9 
any electric supply by an electric utility is superior to 10 
offerings in the competitive market or provides an advantage 11 
to any related retail electric supplier over nonaffiliated 12 
retail electric suppliers; 13 
     (3)  "Commission", the public service commission of the 14 
state of Missouri; 15 
     (4)  "Competitive procurement pr ocess", an auction or 16 
other competitive process in which wholesale electric 17 
suppliers submit bids to supply electric supply to an 18 
electric utility for purposes of serving default supply 19 
service; 20 
     (5)  "Competitive transition charge", non -bypassable  21 
charge mechanism for the recovery of transition or stranded 22 
costs by an electric utility over a limited time period; 23 
     (6)  "Default supply service", electric supply service 24 
provided by an electric utility, or a non -utility entity  25   SB 487 	3 
selected by the commission, upon transition to a competitive 26 
market for customers who do not choose a retail electric 27 
supplier; 28 
     (7)  "Delivery service rates", the charges for the 29 
delivery or transmission of electric power or energy; 30 
     (8)  "Dual bill", an invoic ing framework in which a 31 
retail customer receives a bill from a retail electric 32 
supplier that includes charges for electric supply services 33 
and another bill from the electric utility for transmission 34 
and distribution services; 35 
     (9)  "Electric supply" or "electric supply services", 36 
the sale or purchase of electricity by a retail customer 37 
from a retail supplier or from a default supply service 38 
provider; 39 
     (10)  "Electric utility" or "investor -owned utilities",  40 
an electrical corporation as defin ed in section 386.020.   41 
"Electric utility" or "investor -owned utilities" shall not 42 
include municipally owned electric utilities operating under 43 
chapter 91 or rural electric cooperatives operating under 44 
chapter 394, but such municipally owned or rural e lectric  45 
cooperatives may choose to opt in to a competitive retail 46 
market pursuant the provisions of sections 393.2000 to 47 
393.2036; 48 
     (11)  "Energy assistance customers", residential 49 
customers who are eligible for energy billing assistance due 50 
to their income level and who are enrolled in an energy 51 
assistance program; 52 
     (12)  "Hourly prices", charges for default supply 53 
service that vary hour to hour and are determined from 54 
wholesale market prices using a methodology approved by the 55 
commission; 56   SB 487 	4 
     (13)  "Independent system operator", an independent and 57 
federally regulated entity that coordinates regional 58 
transmission to ensure non -discriminatory access to the 59 
electric grid and a reliable electricity system; 60 
     (14)  "Large commercial and industrial customer", a 61 
customer receiving transmission and distribution service 62 
from an electric utility under a non -residential tariff and 63 
whose maximum registered peak load is one thousand kilowatt 64 
or greater within the last twelve months; 65 
     (15)  "Market power", a company's ability to manipulate 66 
the market clearing price of an item by manipulating the 67 
level of supply, demand, or both; 68 
     (16)  "Medium commercial or industrial customer", a 69 
customer receiving transmission and distribution serv ice  70 
from the electric utility under a non -residential tariff and 71 
whose maximum registered peak load is one hundred fifty or 72 
more kilowatt, but less than one thousand kilowatt, within 73 
the last twelve months; 74 
     (17)  "Non-bypassable", a charge that al l customers  75 
must pay irrespective of their energy supplier; 76 
     (18)  "Rate unbundling", the process of separating the 77 
cost components of delivery services from electric supply 78 
services in the electric utility tariffs; 79 
     (19)  "Residential customer" , a customer receiving 80 
transmission and distribution service from the electric 81 
utility under a residential tariff; 82 
     (20)  "Retail customer", a customer purchasing electric 83 
supply from an electric utility supplier or from a retail 84 
electric supplier; 85 
     (21)  "Retail electric supplier", a person or entity 86 
licensed by the commission to furnish electric supply to 87 
retail customers; 88   SB 487 	5 
     (22)  "Small commercial or industrial customer", a 89 
customer receiving transmission and distribution service 90 
from an electric utility under a non -residential tariff and 91 
whose maximum registered peak load is less than one hundred 92 
fifty kilowatt, within the last twelve months; 93 
     (23)  "Supplier consolidated bill", an invoicing 94 
framework in which a single bill is p rovided to a retail 95 
customer by a retail electric supplier that includes charges 96 
for electric supply services and transmission and 97 
distribution services; 98 
     (24)  "Transition costs" or "stranded costs", costs by 99 
electric utilities that are not recove rable in a competitive 100 
generation market.  Such costs include electric generation 101 
related assets and other deferred charges, the unfunded 102 
portion of nuclear decommissioning costs, environmental 103 
expenses previously incurred, cost obligations under long - 104 
term contracts, and consumer education and other costs 105 
associated with implementing electric choice, in addition to 106 
any costs approved by the commission.  These costs are to be 107 
collected over a limited time period by the competitive 108 
transition charge; 109 
     (25)  "Transmission and distribution service", delivery 110 
of electricity provided by an electric utility over its 111 
transmission and distribution systems; 112 
     (26)  "Utility consolidated bill", an invoicing 113 
framework in which a single bill is provide d to a retail  114 
customer by an electric utility that includes charges for 115 
electric supply services and transmission and distribution 116 
services. 117 
     393.2006.  1.  An electric utility shall provide equal 1 
and open access to electric supply ov er the electric  2 
utility's transmission and distribution systems to allow 3   SB 487 	6 
retail electric suppliers to sell electricity directly to 4 
retail customers in the state. 5 
     2.  Twenty-four months after August 28, 2025, the 6 
commission shall permit commercial and industrial customers 7 
of electric utilities to choose a retail electric supplier. 8 
     3.  On a time frame selected by the commission, but no 9 
later than eighteen months following the date at which 10 
commercial and industrial customers are permitted to choose  11 
a retail electric supplier, the commission shall permit 12 
residential customers to choose a retail electric supplier.   13 
Nothing in this section shall adversely affect the ability 14 
of energy assistance residential customers to retain access 15 
to all financial assistance benefits currently available to 16 
qualifying low-income customers, regardless of the retail 17 
customer's choice of supplier of electric supply services. 18 
     393.2009.  1.  Each electric utility shall submit to 1 
the commission a restructuring plan to assist retail 2 
customers to choose a retail electric supplier for electric 3 
supply services under section 393.2006.  The plan shall be  4 
submitted pursuant to a schedule established by the 5 
commission on or before the date that is twelve months prior 6 
to the date when commercial and industrial customers are 7 
able to choose a retail electric supplier. 8 
     2.  A restructuring plan under this section shall 9 
include, but is not limited to, the following: 10 
     (1)  Identification of tr ansition costs and an 11 
explanation of mitigation efforts taken by electric 12 
utilities to minimize such costs; 13 
     (2)  Proposed non-bypassable transition charges for 14 
each customer class for the recovery of transition costs; 15   SB 487 	7 
     (3)  Proposed unbundled r ates for each retail customer 16 
class for generation, transmission, and distribution 17 
services; 18 
     (4)  A description of the unbundling process, including 19 
an explanation of the steps taken by an electric utility to 20 
ensure that the proposed unbundled rat es do not result in 21 
the creation of cross -subsidies that adversely affect 22 
residential customers; 23 
     (5)  Procedures for ensuring the ability of customers 24 
to choose a retail electric supplier for electric supply 25 
services; 26 
     (6)  Procedures describing the ability of retail 27 
suppliers to obtain historic usage data, and other relevant 28 
information for pricing, invoicing, and communication 29 
functions with retail customers; 30 
     (7)  Procedures describing the process for electric 31 
utilities to provide to retail electric suppliers access to 32 
retail customer data necessary for pricing, contracting, 33 
dual billing, utility consolidated billing, and supplier 34 
consolidated billing functions; 35 
     (8)  Procedures governing the default supply service 36 
supply rates; and 37 
     (9)  Tariffs and rate schedules implementing each of 38 
the procedures in subdivisions (1) to (8) of this subsection. 39 
     3.  The commission shall review each restructuring plan 40 
and, after conducting a hearing, issue an order accepting, 41 
modifying, or rejecting the plan no later than six months 42 
from the filing date of the plan.  If the commission rejects 43 
the plan, the commission shall state the specific reasons 44 
and order the electric utility to file an alternative plan 45 
within thirty days.  The commission shall review the 46   SB 487 	8 
alternative plan and accept comments from interested parties 47 
in a timely manner. 48 
     393.2012.  1.  Electric utilities shall unbundle the 1 
rates charged for generation, transmission, and distribution 2 
services for all customer classes consistent with the 3 
provisions of sections 393.2006 and 393.2009. 4 
     2.  Following the implementation of the unbundled rates 5 
under this section, the commission shall regulate the 6 
manufacture, sale, and distribution of electr icity pursuant  7 
to the provisions of sections 393.2000 to 393.2036. 8 
     393.2015.  1.  Each electric utility shall be permitted 1 
to recover transition costs pursuant to the time frame under 2 
section 393.2006 and the divestiture process unde r section  3 
393.2018. 4 
     2.  The commission shall approve the recovery and time 5 
periods over which the stranded costs are to be collected by 6 
the competitive transition charge.  The commission shall 7 
take into consideration the electric utility's expecte d rate  8 
of return on the generation assets, the proceeds obtained in 9 
the divestiture process under section 393.2018, and the 10 
effect on a retail customer's electricity costs.  The  11 
commission may also consider other criteria deemed 12 
appropriate by the com mission in assessing the stranded cost 13 
recovery and the collection period of such costs. 14 
     393.2018.  1.  At any time prior to and consistent with 1 
the timeline under section 393.2006, electric utilities 2 
shall divest their generation ass ets.  Such generation  3 
assets may be divested in one, or both, of the following 4 
options with the approval of the commission: 5 
     (1)  Sell generation assets to an unaffiliated entity, 6 
or entities, at a fair market value; or 7   SB 487 	9 
     (2)  Transfer generation assets to a non-utility  8 
affiliate at a fair market value. 9 
     2.  During and after the divestiture process under this 10 
section, the commission shall determine whether it is 11 
necessary to establish, in addition to existing independent 12 
system operator market power protections that may be 13 
applicable, an independent market monitor to ensure that no 14 
entity owns generation assets in an amount that gives that 15 
entity market power. 16 
     393.2021.  1.  Consistent with the time frame for 1 
choosing a retail electric supplier pursuant to sections 2 
393.2006 and 393.2009, electric utilities shall provide 3 
default supply service to retail customers that do not 4 
choose a retail electric supplier. 5 
     2.  Default supply service for large commercial and 6 
industrial customers shall consist of hourly prices for 7 
electric energy, along with any additional costs incurred in 8 
the provision of such services by the independent system 9 
operator.  10 
     3.  Default supply service for medium commercial and 11 
industrial customers shall commence with a rate set every 12 
six months through a competitive procurement process along 13 
with any additional costs incurred in the provision of such 14 
services by the independent system operator.  If at any time  15 
less than seventy perc ent of the annual megawatt -hour  16 
consumption of such rate class is supplied by the electric 17 
supply established by the competitive procurement process, 18 
the commission shall initiate a proceeding within three 19 
months of when the less than seventy percent t hreshold was  20 
reached to phase out the electric supply established by the 21 
competitive procurement process and replace it with the 22 
hourly priced default supply service. 23   SB 487 	10 
     4.  Default supply service for small commercial and 24 
industrial customers shall c ommence with a rate set annually 25 
through a competitive procurement process along with any 26 
additional costs incurred in the provision of such services 27 
by the independent system operator.  If at any time less 28 
than sixty percent of the annual megawatt -hour consumption  29 
of such rate class is supplied by the electric supply 30 
established by the competitive procurement process, the 31 
commission shall initiate a proceeding within three months 32 
of when the less than sixty percent threshold was reached to 33 
phase out the electric supply established by the competitive 34 
procurement process and replace it with the hourly priced 35 
default supply service. 36 
     5.  Default supply service for residential customers 37 
shall commence with a rate set annually through a 38 
competitive procurement process along with any additional 39 
costs incurred in the provision of such services by the 40 
independent system operator.  If at any time less than fifty 41 
percent of the annual megawatt -hour consumption of such rate 42 
class is supplied by the electric supply established by the 43 
competitive procurement process, the commission shall 44 
initiate a proceeding within three months of when the less 45 
than fifty percent threshold was reached to phase out the 46 
electric supply established by the competitiv e procurement  47 
process and replace it with the hourly priced default supply 48 
service or another default supply service approved by the 49 
commission. 50 
     6.  The competitive procurement processes under this 51 
section shall consist of a wholesale power auctio n or  52 
similar competitive process to establish a clearing price or 53 
rate including electric supply, capacity, transmission, 54 
ancillary services, and other services identified by the 55   SB 487 	11 
commission, for the retail customers in each rate class that 56 
do not choose a retail electric supplier.  Such auctions  57 
shall occur pursuant to a schedule approved by the 58 
commission consistent with the default supply services under 59 
this section and as frequently as necessary. 60 
     7.  For each default supply service rate clas s category  61 
under this section, the retail rate shall also include all 62 
administrative and operational costs, including direct and 63 
indirect costs, that are incurred to provide default supply 64 
service to retail customers. 65 
     (1)  Direct costs to provide default supply service 66 
shall be fully allocated to the rate for each rate class.   67 
Indirect or shared costs incurred to provide default supply 68 
service shall also be allocated to the rate for each rate 69 
class.  Allocation of indirect or shared costs shall be  70 
determined in accordance with the provisions of this chapter 71 
and through a fully allocated cost study performed by the 72 
electric utility and presented to the commission, subject to 73 
stakeholder input.  This cost study shall include each and 74 
every cost category that can reasonably be deemed necessary 75 
to provide or support the provision of default supply 76 
service. 77 
     (2)  Indirect costs to be recovered in the default 78 
supply service rate under this section shall be re -evaluated  79 
at a time period dee med appropriate by the commission but no 80 
later than every six months.  A commission-approved tariff  81 
shall be established to administer the cost allocation 82 
mechanism under this section. 83 
     8.  For each rate class, once an hourly priced default 84 
supply service has been in operation for six months, the 85 
commission shall initiate a proceeding to establish a 86 
process to phase out the default supply service with an 87   SB 487 	12 
alternative electric supply service provided by one or more 88 
retail electric suppliers for th e purpose of supplying 89 
retail customers in the rate class who do not choose a 90 
retail electric supplier. 91 
     393.2024.  1. The commission may establish a separate 1 
process for the supply of electric supply service for energy 2 
assistance customers in each electric utility service 3 
geographical area. This process shall include the grouping 4 
of the subset of energy assistance residential customers 5 
into an aggregation program. 6 
     2.  The aggregation of customers to be supplied 7 
electric supply services by a retail supplier shall be 8 
chosen by a competitive bidding process for a term length 9 
established by the commission.  The competitive bidding 10 
process may be repeated in advance of the expiration of the 11 
initial term length for the next term . 12 
     3.  The retail supplier selected in the competitive 13 
bidding process under this section shall offer a price at or 14 
below the default supply service rate set annually through a 15 
competitive procurement process for residential customers 16 
for the same or similar term length.  If the electric supply 17 
service chosen by a competitive procurement process for 18 
default supply service is replaced with an hourly default 19 
supply service, the commission may institute an alternative 20 
pricing threshold for purposes of the energy assistance 21 
customer aggregation program under this section. 22 
     4.  Energy assistance customers shall have the ability 23 
to opt-out of the electric supply service aggregation 24 
program. If the energy assistance customers choose to opt - 25 
out, such customers shall no longer be eligible for any 26 
energy assistance relief. 27   SB 487 	13 
     5.  The commission shall hold a public hearing 28 
regarding the energy assistance residential customers 29 
aggregation program under this section prior to the 30 
implementation of the aggregation program.  31 
     393.2027.  1.  All electric utilities shall provide 1 
open and nondiscriminatory access to their data and systems 2 
as needed to retail electric suppliers.  All electric  3 
utilities shall continue to provide mete ring services but  4 
customer-specific data and other relevant customer 5 
information shall be made available to retail electric 6 
suppliers so long as the retail electric suppliers receive a 7 
retail customer's consent for the release of the customer 8 
data. 9 
    2.  The commission shall develop a process to obtain 10 
customer consent for the release of customer data under this 11 
section.  Commonly used digital signatures or similar 12 
methods consistent with the current technological 13 
capabilities shall be sufficien t to receive customer consent. 14 
     3.  Customer data under this section shall include: 15 
     (1)  At least two years of customer usage and metering 16 
data and other information, including, but not limited to, 17 
customer details, transmission details, or any issues with  18 
transmission, distribution, or billing; 19 
     (2)  Monthly summaries and hourly interval data, if 20 
available, of customer usage at the kilowatt -hour and  21 
kilowatt measurements. 22 
     4.  During the time period when a retail customer 23 
receives electric supply from a retail electric supplier, 24 
the electric utility shall make available to the retail 25 
electric supplier customer usage data under subsection 3 of 26 
this section as necessary to facilitate invoicing in a 27 
timely manner. 28   SB 487 	14 
     5.  Retail customers shall be able to select their 29 
preferred billing method including, but not limited to, a 30 
utility consolidated bill of electric supply services and 31 
delivery service rates, a retail electric supplier 32 
consolidated bill of electric supply services an d delivery  33 
service rates, as well as the dual billing option for such 34 
charges. 35 
     6.  The dual billing option shall be available at the 36 
time commercial and industrial customers choose their retail 37 
supplier for electric supply services pursuant to sec tion  38 
393.2006. 39 
     7.  The commission shall promulgate rules to develop 40 
the necessary procedures and requirements to implement the 41 
utility consolidated billing and supplier consolidated 42 
billing methods under this section to be available at the 43 
time residential customers choose their retail electric 44 
supplier. 45 
     8.  Within six months after residential customers 46 
choose a retail electric supplier, electric utilities shall 47 
implement an accelerated switching process where residential 48 
customers may change retail electric suppliers within three 49 
business days after the customers are permitted to choose a 50 
retail electric supplier pursuant to the provision of 51 
section 393.2006.  Additionally, residential and small 52 
commercial and industrial customers mov ing within an  53 
electric utility's geographic service area shall continue to 54 
receive electric supply services from the same retail 55 
electric supplier without being required to switch to a 56 
different retail electric supplier. 57 
     9.  The commission shall h ave the authority to 58 
investigate and establish rules for additional programs 59 
designed to improve the retail customer's experience in 60   SB 487 	15 
choosing a retail electric supplier for electric supply 61 
services.  Such programs may include, but are not limited 62 
to, net-metering incentives, community solar programs, 63 
customer referrals, and municipal aggregation programs. 64 
     393.2030.  1.  Six months after August 28, 2025, the 1 
commission shall develop a customer education program to 2 
ensure that all retail customers have access to accurate 3 
information about their ability to choose a retail electric 4 
supplier.  The program shall explore ways for the commission 5 
to work with electric utilities and retail electric 6 
suppliers to distribute educational pie ces as well as  7 
appropriate cost recovery from all customers to support the 8 
customer education program.  The commission may delegate to 9 
the office of retail market development under section 10 
393.2033 some or all the administrative work required in the 11 
development of the customer education program. 12 
     2.  To the extent the cost of the customer education 13 
program are known when the restructuring plans under section 14 
393.2009 are submitted to the commission, costs may be 15 
approved for recovery through the non-bypassable competitive 16 
transition charge. 17 
     3.  The commission shall explore the use of a website 18 
that explains a retail electric supplier's services and 19 
makes comparisons between the electric supply services and 20 
related products being offered by retail electric suppliers. 21 
     393.2033.  1.  The commission shall establish the 1 
"Office of Retail Market Development and Oversight", to be 2 
funded by an annual assessment of retail electric suppliers 3 
based on a formula to be determined by the commission not to 4 
exceed twenty thousand dollars annually per license under 5 
section 393.2036. 6   SB 487 	16 
     (1)  The office shall have the authority to seek input 7 
from all interested parties and to develop a thorough 8 
understanding and critical analyses of the tools and  9 
techniques used to promote retail energy competition. 10 
     (2)  The office shall monitor existing competitive 11 
power market related conditions in the state, identify 12 
barriers to retail competition for all customer classes, and 13 
actively explore and propose to the commission solutions to 14 
overcome identified barriers and enhance the competitive 15 
retail power market. 16 
     (3)  The office shall publish a report at the request 17 
of the commission, but no less than annually.  The report  18 
shall include a number of complaints filed against each 19 
retail electric supplier, steps taken to resolve the 20 
complaints, and any other information deemed relevant by the 21 
office. 22 
     (4)  The office shall have the authority to address any 23 
violations by a retail electric supplier through an 24 
imposition of a probationary status which may include, but 25 
is not be limited to, enhanced oversight and additional 26 
reporting requirements. 27 
     (5)  The office shall submit to the commission any 28 
recommendation for suspe nsion or revocation of a retail 29 
supplier's license if a violation occurred. 30 
     (6)  The office shall develop and implement a 31 
commission-approved online-training program that requires a 32 
designated representative for each retail electric 33 
supplier.  By participating in the program, the designated 34 
representative shall demonstrate a thorough understanding of 35 
the commission's regulations regarding electric supply 36 
services, consumer protection, and any other matter the 37 
commission deems appropriate. 38   SB 487 	17 
     (7)  At the conclusion of the online -training program  39 
under subdivision (6) of this subsection, the office shall 40 
conduct an online examination and, on a satisfactory score, 41 
certify that the designated representative of the retail 42 
electric supplier has successfully completed the online - 43 
training program in a timely manner. 44 
     (8)  The office shall determine the schedule and 45 
frequency by which a designated representative of a retail 46 
electric supplier shall complete the training and 47 
certification.  The commission shall not issue a license to 48 
a retail electric supplier for the provision of electric 49 
supply service in the state until a designated 50 
representative has completed the online -training program and 51 
received the certification. 52 
     2.  The office shall make recommendations to the 53 
commission concerning the establishment of guidelines for 54 
the provision of electric supply services to residential 55 
customers that ensure: 56 
     (1)  Accurate and adequate pricing information through 57 
marketing and disclosure statements; 58 
     (2)  An understandable format that enables comparing 59 
prices and services on a uniform basis; and 60 
     (3)  Processes to confirm and document a customer's 61 
intent to switch retail electric suppliers to avoid any 62 
unauthorized switches of retail electric suppliers for 63 
electric supply services. 64 
     3.  The office, at the discretion of the commission, 65 
may be tasked with some or all of the administrative work 66 
required in the development of the guidelines under 67 
subsection 2 of this section. 68 
     393.2036.  1.  No person or company shall engage in the 1 
business of electric supply services in this state unless 2   SB 487 	18 
the person or company holds a retail electric supplier 3 
license issued by the commission. 4 
     2.  The commission shall develop a licensing process to 5 
ensure retail electric suppliers seeking to do business in 6 
the state are capable of providing adequate electric supply 7 
service in the state.  The licensing process shall include, 8 
but is not limited to: 9 
     (1)  An application to gather information as to whether 10 
an applicant has the capacity to provide electric supply 11 
service in the state; 12 
     (2)  Internal procedures to process the application 13 
under this section no later than ninety days after the 14 
application is submitted; 15 
     (3)  Establishing reasonable financial requirements to 16 
ensure an applicant is capable of providing electric supply 17 
service in the state; 18 
     (4)  A licensing fee and a bond or other financial 19 
surety instrument issued by a qualifying financial  20 
institution authorized to do business in the state. 21 
     (a)  The amount of the licensing fee shall not exceed 22 
ten thousand dollars. 23 
     (b)  The amount of the surety shall equal five hundred 24 
thousand dollars per retail electric supplier lic ense issued  25 
by the commission. 26 
     (c)  The financial surety shall be conditioned upon the 27 
full and faithful performance of all duties and obligations 28 
of the applicant as a retail electric supplier and shall be 29 
valid for a period of not less than one year.  The cost of  30 
the surety shall be paid by the applicant.  The applicant  31 
shall submit a copy of the surety with a notarized 32 
verification page from the issuer together with the 33 
application; 34   SB 487 	19 
     (5)  Training to ensure the applicant shall comply wit h  35 
all state laws and commission rules. 36 
     3.  The commission shall monitor the retail power 37 
market for the supply and distribution of electricity to 38 
retail customers to ensure retail electric suppliers are not 39 
engaged in anticompetitive or discrimina tory practices. 40 
     (1)  If the commission finds that a retail electric 41 
supplier engaged in anticompetitive or discriminatory 42 
practices, the commission shall request the attorney general 43 
to commence a civil action against the retail electric 44 
supplier in a court of competent jurisdiction. 45 
     (2)  If the court finds that a violation occurred, the 46 
court may impose civil penalties in the amount not to exceed 47 
one hundred thousand dollars per violation, damages, 48 
injunctive relief, attorney fees, and any such other relief  49 
the court finds appropriate. 50 
     (3)  Any proceedings initiated pursuant to this section 51 
shall be subject to the provisions of sections 386.400 to 52 
386.610 and sections 386.700 and 386.710.  Provisions of  53 
sections 393.2000 to 393.203 6 that are applicable to 54 
proceedings involving electric utilities shall also apply to 55 
retail electric suppliers. 56 
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