Modifies certain provisions relating to deferrals by electrical corporations
Should SB51 pass, electrical corporations will be required to submit comprehensive five-year capital investment plans to the Public Service Commission (PSC) detailing their infrastructure investments. Each of these plans must include specific priorities for projects, especially concerning grid modernization and efficiency improvements, such as the integration of smart technologies and renewable energy sources. The bill mandates that these corporations inform the PSC of their investment plans and provide updates on the quantitative evaluations of benefits and costs for any capital investments exceeding twenty million dollars. This requirement for transparency aims to ensure that the investments made serve the best interests of the consumers and promote sustainable energy practices.
Senate Bill 51, introduced by Senator Black, aims to modify existing provisions relating to deferrals by electrical corporations in Missouri. The bill proposes a new section to repeal and replace section 393.1400 of the Revised Statutes of Missouri. Its central theme revolves around allowing electrical corporations to defer a significant portion of depreciation expense and return associated with qualifying electric plants, thereby impacting their rate base. If enacted, this bill would enable electrical corporations to record ninety percent of these costs as regulatory assets, which they could then recover over an extended period during general rate proceedings.
The bill has raised points of contention regarding its potential implications for consumer costs and the ability of the PSC to oversee and regulate these activities effectively. Critics may argue that allowing such deferrals without stringent oversight could lead to increased rates for consumers as companies pass on costs associated with infrastructure projects that may not yield immediate benefits. Supporters assert that this legislation promotes necessary investment in the electric grid and modernization efforts crucial for meeting future energy demands, thus possibly preventing future crises and enhancing overall service reliability.