Missouri HB 1084: Creates new provisions relating to electric utilities

Bill Text

FIRST REGULAR SESSION
HOUSE BILL NO. 1084
103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE OEHLERKING.
2518H.01I JOSEPH ENGLER, Chief Clerk
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:
SectionA. Section393.135,RSMo,isrepealedandthreenewsectionsenactedinlieu
2 thereof, to be known as sections 393.135, 393.1250, and 393.1900, to read as follows:
393.135. 1. Except as provided in subsection 2 of this section, any charge made or
2 demanded by an electrical corporation for service, or in connection therewith, which is based
3 on the costs of construction in progress upon any existing or new facility of the electrical
4 corporation, or any other cost associated with owning, operating, maintaining, or financing
5 any property before it is fully operational and used for service, is unjust and unreasonable,
6 and is prohibited.
7 2. (1) An electrical corporation shall be permitted, subject to the limitations
8 providedforinthissubsection,toincludeanyamountsrecordedtoconstructionworkin
9 progress for any new natural gas generating unit in the corporation's ratemaking rate
10 base. Theinclusionofconstructionworkinprogressallowedunderthissubsectionshall
11 be in lieu of any otherwise applicable allowance for funds used during construction that
12 would have accrued from and after the effective date of new base rates that reflect
13 inclusion of the construction work in progress in rate base. The commission shall
14 determine, in a proceeding under section 393.170, the amount of construction work in
15 progress that may be included in rate base. The amount shall be limited by:
16 (a) The estimated cost of such project; and
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language.

17 (b) Project expendituresmade within the estimated construction period for such
18 project.
19
20 Base rate recoveries arising from inclusion of construction work in progress in base
21 rates are subject to refund, together with interest on the refunded amount at the same
22 rate as the rate of interest for delinquent taxes determined by the director of revenue in
23 accordance with section 32.065, if and to the extent the commission determines, in a
24 subsequent complaint or general rate proceeding, that construction costs giving rise to
25 the construction work in progress included in rate base were imprudently incurred.
26 Return deferred under subdivision (2) of subsection 3 of section 393.1400 for plant that
27 hasbeenincludedinbaseratesasconstructionworkinprogressshalloffsettheamounts
28 deferred under section 393.1400.
29 (2) Provisions of this subsection shall expire on December 31, 2035, unless the
30 commission determines, after a hearing conducted in 2035 upon a submission from an
31 electricalcorporationofanapplicationrequestinganextension,thatgoodcauseexiststo
32 extend the provisions of this subsection through December 31, 2045. The secretary of
33 the commission shall notify the revisor of statutes when the conditions set forth for the
34 extension of this subsection have been met.
393.1250. 1. This section shall be known and may be cited as the "Missouri
2 Nuclear Clean Power Act", the purpose of which is to enable the construction of clean
3 baseload electric generating plants. This section shall not apply to clean baseload
4 electric generating plants that are in commercial operation before August 28, 2025.
5 2. As used in this section, the following terms mean:
6 (1) "Clean baseload generating plant", a new nuclear-fueled electric generating
7 facility located in this state that is designed to be operated at six hundred megawatts or
8 less and is intended in whole or in part to serve retail customers of an electrical
9 corporation in Missouri;
10 (2) "Construction work in progress", the electrical corporation's share of all
11 capital costs associated with a clean baseload generating plant or renewable source
12 generating facility, which have been incurred but have not been included in the
13 electrical corporation's plant in service, and are recorded in the Federal Energy
14 Regulatory Commission's Uniform System of Accounts Prescribed for Public Utilities
15 and Licensees Subject to the Provisions of the Federal Power Act, Balance Sheet Chart
16 Accounts, as construction work in progress for electric plants in 18 CFR Part 101, or
17 any other account established in the Uniform System of Accounts for the recording of
18 construction work in progress.
HB 1084 2

19 3. The provisions of section 393.135 shall not apply to a clean baseload
20 generating plant if the plant is rated at six hundred megawatts or less. Before any such
21 construction work begins, an electrical corporation seeking to include construction
22 work in progr