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Missouri Senate Bill SB610

Missouri 2025 Regular Session

Missouri Senate Bill SB610 Compare Versions

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22 FIRST REGULAR SESSION
33 SENATE BILL NO. 610
44 103RD GENERAL ASSEMBLY
55 INTRODUCED BY SENATOR GREGORY (21).
66 2119S.01I KRISTINA MARTIN, Secretary
77 AN ACT
88 To repeal section 393.135, RSMo, and to enact in lieu thereof three new sections relating to electric
99 utilities.
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1212 Section A. Section 393.135, RSMo, is repealed a nd three 1
1313 new sections enacted in lieu thereof, to be known as sections 2
1414 393.135, 393.1250, 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 demanded 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 fo r 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 610 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 estimated 25
4040 construction period for such p roject. 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 delinquent 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 610 3
6363 393.1250. 1. This section shall be known and may be 1
6464 cited as the "Missouri Nuclear Clean Power Act", the purpose 2
6565 of which is to enable the construction of clean baseload 3
6666 electric generating plants. This section shall not apply to 4
6767 clean baseload electric generating plan ts that are in 5
6868 commercial operation before August 28, 2025. 6
6969 2. As used in this section, the following terms mean: 7
7070 (1) "Clean baseload generating plant", a new nuclear - 8
7171 fueled electric generating facility located in this state 9
7272 that is designed to be operated at six hundred megawatts or 10
7373 less and is intended in whole or in part to serve retail 11
7474 customers of an electrical corporation in Missouri; 12
7575 (2) "Construction work in progress", the electrical 13
7676 corporation's share of all capital costs a ssociated with a 14
7777 clean baseload generating plant or renewable source 15
7878 generating facility, which have been incurred but have not 16
7979 been included in the electrical corporation's plant in 17
8080 service, and are recorded in the Federal Energy Regulatory 18
8181 Commission's Uniform System of Accounts Prescribed for 19
8282 Public Utilities and Licensees Subject to the Provisions of 20
8383 the Federal Power Act, Balance Sheet Chart Accounts, as 21
8484 construction work in progress for electric plants in 18 CFR 22
8585 Part 101, or any other account established in the Uniform 23
8686 System of Accounts for the recording of construction work in 24
8787 progress. 25
8888 3. The provisions of section 393.135 shall not apply 26
8989 to a clean baseload generating plant if the plant is rated 27
9090 at six hundred megawatts or less. Before any such 28
9191 construction work begins, an electrical corporation seeking 29
9292 to include construction work in progress in rates shall file 30
9393 with the commission a plan detailing the projected costs of 31
9494 the project and the plan to recover those costs through 32 SB 610 4
9595 rates. Costs recovered by an electrical corporation under 33
9696 the provisions of this section are subject to inclusion or 34
9797 exclusion from rates in a ratemaking proceeding pursuant to 35
9898 the commission's authority to determine just and reasonable 36
9999 rates. In addition, the commission may authorize an 37
100100 electrical corporation to make or demand charges for service 38
101101 based in whole or in part on additional amortizations to 39
102102 maintain the electrical corporation's financial ratios that 40
103103 will, in the commission's judgmen t, better enable the 41
104104 electrical corporation to cost -effectively construct a clean 42
105105 baseload generating plant. 43
106106 4. The commission may promulgate rules to assist in 44
107107 the implementation of this section. Any rule or portion of 45
108108 a rule, as that term is d efined in section 536.010, that is 46
109109 created under the authority delegated in this section shall 47
110110 become effective only if it complies with and is subject to 48
111111 all of the provisions of chapter 536 and, if applicable, 49
112112 section 536.028. This section and chapt er 536 are 50
113113 nonseverable and if any of the powers vested with the 51
114114 general assembly pursuant to chapter 536 to review, to delay 52
115115 the effective date, or to disapprove and annul a rule are 53
116116 subsequently held unconstitutional, then the grant of 54
117117 rulemaking authority and any rule proposed or adopted after 55
118118 August 28, 2025, shall be invalid and void. 56
119119 393.1900. 1. The commission shall, by August 28, 1
120120 2026, and every four years or as needed thereafter, commence 2
121121 an integrated resource planning proceeding for electrical 3
122122 corporations. As part of such proceeding, the commission 4
123123 shall: 5
124124 (1) Identify any required planning reserve margins and 6
125125 applicable local clearing requirements, and any proposed 7
126126 planning reserve margins and local clearin g requirements 8 SB 610 5
127127 which are scheduled to take effect within a relevant future 9
128128 timeframe; 10
129129 (2) Identify significant existing or proposed state or 11
130130 federal environmental regulations, laws, or rules and 12
131131 identify how each such regulation, law, or rule may apply to 13
132132 electrical corporations in this state; 14
133133 (3) Establish an alternative resource plan or plans 15
134134 that shall be included in an electrical corporation's 16
135135 integrated resource plan filing pursuant to subsection 3 of 17
136136 this section, and the factors t hat each electrical 18
137137 corporation may take into account in developing such plans, 19
138138 including, but not limited to, all of the following: 20
139139 (a) Projected planning reserve margins and local 21
140140 clearing requirements and the environmental regulations, 22
141141 laws, or rules pursuant to subdivisions (1) and (2) of this 23
142142 subsection, respectively; 24
143143 (b) Projections of future loads, including both energy 25
144144 and capacity, over the planning period; 26
145145 (c) The supply-side and demand-side resources that may 27
146146 reasonably address any need for additional energy and 28
147147 capacity, including, but not limited to, the type of 29
148148 generation technology for any proposed generation facility, 30
149149 projected load impact due to electrification or economic 31
150150 development projects, and projected load management and 32
151151 demand response savings; 33
152152 (d) The projected cost of different types of 34
153153 technologies and fuel used for electric generation; and 35
154154 (e) Any other factors the commission may order to be 36
155155 considered; 37
156156 (4) Identify or designate an y software, data 38
157157 standards, and formatting to be used in modeling the 39 SB 610 6
158158 alternative resource plan or plans pursuant to subdivision 40
159159 (3) of this subsection; 41
160160 (5) Complete such proceeding no less than eighteen 42
161161 months prior to the first integrated resou rce plan filing 43
162162 pursuant to subsection 2 of this section. 44
163163 2. Not later than August 28, 2027, the commission 45
164164 shall publish a schedule for electrical corporations to file 46
165165 an integrated resource plan every four years, with the first 47
166166 integrated resource plan or plans filing to occur not before 48
167167 the first day of the nineteenth month after publication of 49
168168 such schedule. Each electrical corporation shall, pursuant 50
169169 to the published schedule, file with the commission an 51
170170 integrated resource plan that inc ludes an alternative 52
171171 resource plan or plans meeting the requirements of 53
172172 subdivision (3) of subsection 1 of this section, and such 54
173173 other alternative resource plans as the electrical 55
174174 corporation deems appropriate. All alternative resource 56
175175 plans shall cover a minimum sixteen -year planning horizon. 57
176176 All such plans shall reflect projections of an electrical 58
177177 corporation's load obligations and how under each such plan 59
178178 the electrical corporation would reliably meet its projected 60
179179 load obligations over such periods consistent with 61
180180 applicable planning reserve margins, local clearing 62
181181 requirements, and applicable state and federal environmental 63
182182 regulations, laws, or rules. 64
183183 3. Without limiting the requirements set forth in 65
184184 subsection 2 of this section, an electrical corporation's 66
185185 integrated resource plan filing shall include: 67
186186 (1) Information regarding generating units in the 68
187187 electrical corporation's existing portfolio, including, but 69
188188 not limited to, unit characteristics, current and expected 70
189189 accredited capacity by season, licensing status, current 71 SB 610 7
190190 depreciation rates for each generating unit, currently 72
191191 expected retirement dates and, if applicable, any remaining 73
192192 useful life of each generating unit, and identification of 74
193193 potential capital proj ects that are reasonably expected to 75
194194 result in the extension of the retirement date of each 76
195195 generating unit; 77
196196 (2) Plans for meeting current and future generation 78
197197 attribute needs, with estimates of the capital and operating 79
198198 and maintenance costs ov er the planning horizon for all 80
199199 proposed construction and major investments in new 81
200200 generating units, including costs associated with 82
201201 transmission or distribution infrastructure that would be 83
202202 required to integrate such investments into the electrical 84
203203 corporation's system; 85
204204 (3) Identification of the generation attribute 86
205205 necessary for the provision of safe and adequate service at 87
206206 just and reasonable rates; 88
207207 (4) Analysis of the cost, performance, expected 89
208208 accredited capacity by season, and via bility of all 90
209209 reasonable options available to meet projected generation 91
210210 attribute needs, including, but not limited to, existing 92
211211 electric generation facilities, and an explanation why an 93
212212 electrical corporation selected the options outlined in the 94
213213 plan; 95
214214 (5) Analysis of alternative resource plans to test 96
215215 risk factors identified by the electrical corporation; 97
216216 (6) An explanation of how the electrical corporation 98
217217 uses capacity expansion optimization software for the 99
218218 development of alternative resource plans; 100
219219 (7) Projections of rate impacts including rate impacts 101
220220 from fuel costs of the top four alternative resource plans 102 SB 610 8
221221 including the preferred plan for the periods covered by the 103
222222 plan; 104
223223 (8) Forecasts of the electrical corporation' s sales by 105
224224 hour under reasonable scenarios; 106
225225 (9) The types of generation technologies proposed for 107
226226 generation facilities contained in the plans and the 108
227227 proposed accredited capacity of the generation facilities as 109
228228 estimated by the corporation and t he relevant regional 110
229229 transmission organization or independent system operator, 111
230230 including projected fuel costs under reasonable scenarios; 112
231231 (10) An analysis of potential new or upgraded electric 113
232232 transmission and distribution options for the electric al 114
233233 corporation; 115
234234 (11) Analysis of the projected firm gas transportation 116
235235 contracts or natural gas storage the electrical corporation 117
236236 will hold to provide an adequate supply of fuel to new 118
237237 generation facilities; 119
238238 (12) Projected load management, demand response 120
239239 impact, and peak demand reduction for the electrical 121
240240 corporation, including, but not limited to, the magnitude of 122
241241 expected load impacts during the anticipated hours, seasons, 123
242242 and years and the projected costs for such plans; 124
243243 (13) An explanation of how the electrical corporation 125
244244 will comply with all applicable state and federal 126
245245 environmental regulations, laws, and rules, and the 127
246246 projected costs of complying with those regulations, laws, 128
247247 and rules; 129
248248 (14) Expected resource planning and system impacts of 130
249249 draft programs and mechanisms associated with new load, 131
250250 reduced load, or retained load associated with economic 132
251251 development rates or riders and programs offered in 133 SB 610 9
252252 accordance with section 393.1075, as well as other program s 134
253253 offered under current law; 135
254254 (15) Results from a request for information or 136
255255 proposals to provide any new supply -side resources needed to 137
256256 serve the corporation's projected electric load, applicable 138
257257 planning reserve margin, and local clearing requi rement 139
258258 during the initial four -year planning period. The request 140
259259 for information or proposals may define qualifying 141
260260 performance standards, contract terms, technical competence, 142
261261 capability, reliability, creditworthiness, past performance, 143
262262 and other criteria that responses or respondents to the 144
263263 request for information shall meet in order to be considered 145
264264 by the corporation in its integrated resource plan. 146
265265 Respondents to a request for information or proposals may 147
266266 request that certain proprietary inf ormation be treated as 148
267267 confidential or highly confidential pursuant to the 149
268268 commission's governing rules. A corporation that issues a 150
269269 request for information or proposals under this subsection 151
270270 shall use the resulting information or proposals to inform 152
271271 its integrated resource plan and include all of the 153
272272 submitted information or proposals as attachments to its 154
273273 integrated resource plan filing; 155
274274 (16) Selection of a preferred resource plan; 156
275275 (17) Delineation of an implementation plan covering a 157
276276 four-year implementation period ending three hundred sixty - 158
277277 five days after the electrical corporation's next -scheduled 159
278278 quadrennial integrated resource plan filing, which shall 160
279279 specify the construction or acquisition by the utility of 161
280280 specific supply-side resources or a specified quantity of 162
281281 supply-side resources by supply -side resource type, or both, 163
282282 for which construction or acquisition is planned to commence 164
283283 within said four-year implementation period; and 165 SB 610 10
284284 (18) Any other information that the commission may 166
285285 specify by rule. 167
286286 4. The commission shall, after a hearing is conducted, 168
287287 issue a report and order no later than three hundred sixty 169
288288 days after the electrical corporation files an integrated 170
289289 resource plan under this section, unless the commission 171
290290 grants itself an extension for good cause for the issuance 172
291291 of the report and order. Up to one hundred fifty days after 173
292292 an electrical corporation makes its initial integrated 174
293293 resource plan filing, the electrical corporation may file an 175
294294 update of the cost estimates provided under subdivision (2) 176
295295 of subsection 3 of this section if the cost estimates have 177
296296 materially changed. An electrical corporation shall not 178
297297 modify any other aspect of the initial integrated resource 179
298298 plan filing unless the commission grants the electrical 180
299299 corporation the ability to do so. The commission's report 181
300300 and order shall determine whether the electrical corporation 182
301301 has submitted sufficient documentation and selected a 183
302302 preferred resource plan that represents a reasonable and 184
303303 prudent means of meeting the electrical corporation's load 185
304304 serving obligations at just and reasonable rates. In making 186
305305 the determination, the commission shall consider whether the 187
306306 plan appropriately balances all of the following fact ors: 188
307307 (a) Resource adequacy to serve anticipated peak 189
308308 electric load and seasonal peak demand forecasts, applicable 190
309309 planning reserve margin, local clearing requirements, and 191
310310 the role of energy and capacity markets; 192
311311 (b) Reliability; 193
312312 (c) Rate impacts; 194
313313 (d) Overall cost-effectiveness in providing service; 195
314314 (e) Commodity price risks; 196
315315 (f) Diversity of supply-side resources; 197 SB 610 11
316316 (g) Competitive pricing; 198
317317 (h) Participation in regional transmission 199
318318 organization markets; and 200
319319 (i) Compliance with applicable state and federal 201
320320 environmental regulations. 202
321321 5. (1) If the commission determines that the 203
322322 preferred resource plan is a reasonable and prudent means of 204
323323 meeting the electrical corporation's load serving 205
324324 obligations, such determination shall constitute the 206
325325 commission's permission for the electrical corporation to 207
326326 construct or acquire the specified supply -side resources, or 208
327327 a specified quantity of supply -side resources by supply -side 209
328328 resource type, or both , that were reflected in the 210
329329 implementation plan submitted under subdivision (15) of 211
330330 subsection 3 of this section, provided that construction 212
331331 commences or the acquisition agreement is executed within 213
332332 the four-year implementation period. With respect to such 214
333333 resources, when the electrical corporation files an 215
334334 application for a certificate of convenience and necessity 216
335335 to authorize construction or acquisition of such resource or 217
336336 resources pursuant to subsection 1 of section 393.170, the 218
337337 commission shall be deemed to have determined that the 219
338338 supply-side resources for which such a determination was 220
339339 made are necessary or convenient for the public interest. 221
340340 In such a certificate of convenience and necessity 222
341341 proceeding, the commission's inquiry shall be limited to 223
342342 considering the electrical corporation's qualifications to 224
343343 construct and operate the resources, the electrical 225
344344 corporation's ability to finance the construction or 226
345345 acquisition of the resources, and siting considerations. 227
346346 The commission shall take all reasonable steps to expedite 228
347347 such a certificate of convenience and necessity proceeding 229 SB 610 12
348348 and shall issue its decision in such a proceeding within one 230
349349 hundred twenty days of the date that the electrical 231
350350 corporation files its application. An electrical 232
351351 corporation shall annually, or more frequently if required 233
352352 by the commission, report to the commission the status of 234
353353 supply-side resources being implemented during the 235
354354 implementation period. 236
355355 (2) If the commission determines that the preferred 237
356356 resource plan, in whole or in part, is not a reasonable and 238
357357 prudent means of meeting the electrical corporation's load 239
358358 serving obligations, the commission shall have the authority 240
359359 to specify in its report and order the deficiencies in the 241
360360 preferred resource plan and may require the electrical 242
361361 corporation to make a further filing within sixty days after 243
362362 issuance of the report and order addressing the deficiencies 244
363363 and the electrical corporation may propose modifications to 245
364364 its original preferred resource plan. If such an order 246
365365 requiring a further filing by the electrical corporation is 247
366366 issued, the commission's report and order issued under this 248
367367 subsection shall not be final for purposes of rehearing 249
368368 pursuant to section 386.500 or an ap peal pursuant to section 250
369369 386.510. Other parties to the integrated resource plan 251
370370 docket shall have sixty days to respond to the electrical 252
371371 corporation's further filing, unless the commission grants 253
372372 an extension for good cause to respond to the electric al 254
373373 corporation's further filing. Within sixty days after the 255
374374 deadline for such other parties' filings, the commission 256
375375 shall issue a report and order, which shall be final for 257
376376 purposes of rehearing pursuant to section 386.500, and 258
377377 appeal pursuant to s ection 386.510, indicating whether the 259
378378 deficiencies have been cured by the electrical corporation's 260
379379 further filing and the commission may approve the electrical 261 SB 610 13
380380 corporation's modified preferred resource plan and may 262
381381 approve specific supply -side resources, or a specified 263
382382 quantity of supply-side resources by supply -side resource 264
383383 type, or both. If the commission finds continued 265
384384 deficiencies in the electrical corporation's modified 266
385385 preferred resource plan: 267
386386 (a) The commission may initiate a compla int proceeding 268
387387 pursuant to the provisions of section 393.270; 269
388388 (b) The electrical corporation shall not be eligible 270
389389 for a limited inquiry in any proceeding under section 271
390390 393.170 as set forth in subdivision (1) of this subsection 272
391391 for any resource additions not approved by the commission; 273
392392 and 274
393393 (c) The electrical corporation shall not be eligible 275
394394 for construction work in progress as set forth in 276
395395 subdivision (3) of this subsection for any resource 277
396396 additions not approved by the commission. 278
397397 (3) Notwithstanding section 393.135 to the contrary, 279
398398 if approved in a proceeding granting permission and approval 280
399399 under subsection 1 of section 393.170, an electrical 281
400400 corporation may be permitted to include in the corporation's 282
401401 rate base any amounts recorded to construction work in 283
402402 progress for the investments for which permission is given 284
403403 under subdivision (1) of subsection 5 of this section. The 285
404404 inclusion of construction work in progress shall be in lieu 286
405405 of any otherwise applicable allowance fo r funds used during 287
406406 construction that would have accrued from and after the 288
407407 effective date of new base rates that reflect inclusion of 289
408408 the construction work in progress in rate base. The 290
409409 commission shall determine, in a proceeding under section 291
410410 393.170, the amount of construction work in progress that 292 SB 610 14
411411 may be included in rate base. The amount shall be limited 293
412412 by: 294
413413 (a) The estimated cost of such project; and 295
414414 (b) Project expenditures made within the estimated 296
415415 construction period for such p roject. Base rate recoveries 297
416416 arising from inclusion of construction work in progress in 298
417417 base rates are subject to refund, together with interest on 299
418418 the refunded amount at the same rate as the rate of interest 300
419419 for delinquent taxes determined by the dir ector of revenue 301
420420 in accordance with section 32.065, if and to the extent the 302
421421 commission determines, in a subsequent complaint or general 303
422422 rate proceeding, that construction costs giving rise to the 304
423423 construction work in progress included in rate base wer e 305
424424 imprudently incurred. Return deferred under subdivision (2) 306
425425 of subsection 3 of section 393.1400 for plant that has been 307
426426 included in base rates as construction work in progress 308
427427 shall offset the amounts deferred under section 393.1400. 309
428428 6. The commission shall promulgate rules necessary to 310
429429 implement the provisions of this section. Any rule or 311
430430 portion of a rule, as that term is defined in section 312
431431 536.010, that is created under the authority delegated in 313
432432 this section shall become effective only if it complies with 314
433433 and is subject to all of the provisions of chapter 536 and, 315
434434 if applicable, section 536.028. This section and chapter 316
435435 536 are nonseverable and if any of the powers vested with 317
436436 the general assembly pursuant to chapter 536 to review, to 318
437437 delay the effective date, or to disapprove and annul a rule 319
438438 are subsequently held unconstitutional, then the grant of 320
439439 rulemaking authority and any rule proposed or adopted after 321
440440 August 28, 2025, shall be invalid and void. 322
441441 7. As used in this section, the following terms shall 323
442442 mean: 324 SB 610 15
443443 (1) "Firm gas transportation", an anticipated 325
444444 agreement entered into between the electrical corporation 326
445445 and a natural gas transmission provider for a set period of 327
446446 time to provide firm delivery of natural g as to an electric 328
447447 generation facility; 329
448448 (2) "Generation attribute", the capacity, energy, and 330
449449 other generating unit capabilities used in regional energy 331
450450 and capacity markets to differentiate services that can be 332
451451 provided by various types of genera ting units. 333
452452