FIRST REGULAR SESSION
SENATE BILL NO. 610
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR GREGORY (21).
2119S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 393.135, RSMo, and to enact in lieu thereof three new sections relating to electric
utilities.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 393.135, RSMo, is repealed a nd three 1
new sections enacted in lieu thereof, to be known as sections 2
393.135, 393.1250, 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 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 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 fo r 16
funds used during construction that would have accrued from 17
and after the effective date of new base rates that reflect 18 SB 610 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 estimated 25
construction period for such p roject. 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 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 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 610 3
393.1250. 1. This section shall be known and may be 1
cited as the "Missouri Nuclear Clean Power Act", the purpose 2
of which is to enable the construction of clean baseload 3
electric generating plants. This section shall not apply to 4
clean baseload electric generating plan ts that are in 5
commercial operation before August 28, 2025. 6
2. As used in this section, the following terms mean: 7
(1) "Clean baseload generating plant", a new nuclear - 8
fueled electric generating facility located in this state 9
that is designed to be operated at six hundred megawatts or 10
less and is intended in whole or in part to serve retail 11
customers of an electrical corporation in Missouri; 12
(2) "Construction work in progress", the electrical 13
corporation's share of all capital costs a ssociated with a 14
clean baseload generating plant or renewable source 15
generating facility, which have been incurred but have not 16
been included in the electrical corporation's plant in 17
service, and are recorded in the Federal Energy Regulatory 18
Commission's Uniform System of Accounts Prescribed for 19
Public Utilities and Licensees Subject to the Provisions of 20
the Federal Power Act, Balance Sheet Chart Accounts, as 21
construction work in progress for electric plants in 18 CFR 22
Part 101, or any other account established in the Uniform 23
System of Accounts for the recording of construction work in 24
progress. 25
3. The provisions of section 393.135 shall not apply 26
to a clean baseload generating plant if the plant is rated 27
at six hundred megawatts or less. Before any such 28
construction work begins, an electrical corporation seeking 29
to include construction work in progress in rates shall file 30
with the commission a plan detailing the projected costs of 31
the project and the plan to recover those costs through 32 SB 610 4
rates. Costs recovered by an electrical corporation under 33
the provisions of this section are subject to inclusion or 34
exclusion from rates in a ratemaking proceeding pursuant to 35
the commission's authority to determine just and reasonable 36
rates. In addition, the commission may authorize an 37
electrical corporation to make or demand charges for service 38
based in whole or in part on additional amortizations to 39
maintain the electrical corporation's financial ratios that 40
will, in the commission's judgmen t, better enable the 41
electrical corporation to cost -effectively construct a clean 42
baseload generating plant. 43
4. The commission may promulgate rules to assist in 44
the implementation of this section. Any rule or portion of 45
a rule, as that term is d efined in section 536.010, that is 46
created under the authority delegated in this section shall 47
become effective only if it complies with and is subject to 48
all of the provisions of chapter 536 and, if applicable, 49
section 536.028. This section and chapt er 536 are 50
nonseverable and if any of the powers vested with the 51
general assembly pursuant to chapter 536 to review, to delay 52
the effective date, or to disapprove and annul a rule are 53
subsequently held unconstitutional, then the grant of 54
rulemaking authority and any rule proposed or adopted after 55
August 28, 2025, shall be invalid and void. 56
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 clearin g requirements 8 SB 610 5
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 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 t hat 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 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 an y software, data 38
standards, and formatting to be used in modeling the 39 SB 610 6
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 resou rce 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 inc ludes 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
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 SB 610 7
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 proj ects 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 ov er 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 via bility 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
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 SB 610 8
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 t he 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 electric al 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
(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 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 SB 610 9
accordance with section 393.1075, as well as other program s 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 requi rement 139
during the initial four -year planning period. The request 140
for information or proposals 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 inf ormation 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
(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 SB 610 10
(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 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 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 shall consider whether the 187
plan appropriately balances all of the following fact ors: 188
(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 SB 610 11
(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 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 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 determination was 220
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 SB 610 12
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 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 ap peal 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
corporation's further filing, unless the commission grants 253
an extension for good cause to respond to the electric al 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 s ection 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 SB 610 13
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 compla int 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 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 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
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 fo r 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 SB 610 14
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 p roject. 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 dir ector 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 wer e 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
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 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 SB 610 15
(1) "Firm gas transportation", an anticipated 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 g as 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 genera ting units. 333