Effective - 28 Aug 2017, 3 histories
393.1075. Citation of law — definitions — policy to value demand-side investments equal to traditional investments — development of cost recovery mechanisms — costs not to be assigned to customers, when — rulemaking authority — annual report — certain charges to appear on bill. — 1. This section shall be known as the "Missouri Energy Efficiency Investment Act".
2. As used in this section, the following terms shall mean:
(1) "Commission", the Missouri public service commission;
(2) "Demand response", measures that decrease peak demand or shift demand to off-peak periods;
(3) "Demand-side program", any program conducted by the utility to modify the net consumption of electricity on the retail customer's side of the electric meter, including but not limited to energy efficiency measures, rate management, demand response, and interruptible or curtailable load;
(4) "Energy efficiency", measures that reduce the amount of electricity required to achieve a given end use;
(5) "Interruptible or curtailable rate", a rate under which a customer receives a reduced charge in exchange for agreeing to allow the utility to withdraw the supply of electricity under certain specified conditions;
(6) "Total resource cost test", a test that compares the sum of avoided utility costs and avoided probable environmental compliance costs to the sum of all incremental costs of end-use measures that are implemented due to the program, as defined by the commission in rules.
3. It shall be the policy of the state to value demand-side investments equal to traditional investments in supply and delivery infrastructure and allow recovery of all reasonable and prudent costs of delivering cost-effective demand-side programs. In support of this policy, the commission shall:
(1) Provide timely cost recovery for utilities;
(2) Ensure that utility financial incentives are aligned with helping customers use energy more efficiently and in a manner that sustains or enhances utility customers' incentives to use energy more efficiently; and
(3) Provide timely earnings opportunities associated with cost-effective measurable and verifiable efficiency savings.
4. The commission shall permit electric corporations to implement commission-approved demand-side programs proposed pursuant to this section with a goal of achieving all cost-effective demand-side savings. Recovery for such programs shall not be permitted unless the programs are approved by the commission, result in energy or demand savings and are beneficial to all customers in the customer class in which the programs are proposed, regardless of whether the programs are utilized by all customers. The commission shall consider the total resource cost test a preferred cost-effectiveness test. Programs targeted to low-income customers or general education campaigns do not need to meet a cost-effectiveness test, so long as the commission determines that the program or campaign is in the public interest. Nothing herein shall preclude the approval of demand-side programs that do not meet the test if the costs of the program above the level determined to be cost-effective are funded by the customers participating in the program or through tax or other governmental credits or incentives specifically designed for that purpose.
5. To comply with this section the commission may develop cost recovery mechanisms to further encourage investments in demand-side programs including, in combination and without limitation: capitalization of investments in and expenditures for demand-side programs, rate design modifications, accelerated depreciation on demand-side investments, and allowing the utility to retain a portion of the net benefits of a demand-side program for its shareholders. In setting rates the commission shall fairly apportion the costs and benefits of demand-side programs to each customer class except as provided for in subsection 6 of this section. Prior to approving a rate design modification associated with demand-side cost recovery, the commission shall conclude a docket studying the effects thereof and promulgate an appropriate rule.
6. The commission may reduce or exempt allocation of demand-side expenditures to low-income classes, as defined in an appropriate rate proceeding, as a subclass of residential service.
7. Provided that the customer has notified the electric corporation that the customer elects not to participate in demand-side measures offered by an electrical corporation, none of the costs of demand-side measures of an electric corporation offered under this section or by any other authority, and no other charges implemented in accordance with this section, shall be assigned to any account of any customer, including its affiliates and subsidiaries, meeting one or more of the following criteria:
(1) The customer has one or more accounts within the service territory of the electrical corporation that has a demand of five thousand kilowatts or more;
(2) The customer operates an interstate pipeline pumping station, regardless of size; or
(3) The customer has accounts within the service territory of the electrical corporation that have, in aggregate, a demand of two thousand five hundred kilowatts or more, and the customer has a comprehensive demand-side or energy efficiency program and can demonstrate an achievement of savings at least equal to those expected from utility-provided programs.
8. Customers that have notified the electrical corporation that they do not wish to participate in demand-side programs under this section shall not subsequently be eligible to participate in demand-side programs except under guidelines established by the commission in rulemaking.
9. Customers who participate in demand-side programs initiated after August 1, 2009, shall be required to participate in program funding for a period of time to be established by the commission in rulemaking.
10. Customers electing not to participate in an electric corporation's demand-side programs under this section shall still be allowed to participate in interruptible or curtailable rate schedules or tariffs offered by the electric corporation.
11. The commission shall provide oversight and may adopt rules and procedures and approve corporation-specific settlements and tariff provisions, independent evaluation of demand-side programs, as necessary, to ensure that electric corporations can achieve the goals of this section. Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2009, shall be invalid and void.
12. Each electric corporation shall submit an annual report to the commission describing the demand-side programs implemented by the utility in the previous year. The report shall document program expenditures, including incentive payments, peak demand and energy savings impacts and the techniques used to estimate those impacts, avoided costs and the techniques used to estimate those costs, the estimated cost-effectiveness of the demand-side programs, and the net economic benefits of the demand-side programs.
13. Charges attributable to demand-side programs under this section shall be clearly shown as a separate line item on bills to the electrical corporation's customers.
14. The commission shall develop rules that provide for disclosure of participants in all demand-side programs offered by electrical corporations under this section when such programs provide monetary incentives to the customer. The disclosure required by this subsection may include, but not be limited to, the following: the name of the participant, or the names of the principals if for a company, the property address, and the amount of the monetary incentive received.
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(L. 2009 S.B. 376 § 393.1124, A.L. 2013 H.B. 142, A.L. 2017 S.B. 112)
Structure Missouri Revised Statutes
Title XXV - Incorporation and Regulation of Certain Utilities and Carriers
Chapter 393 - Gas, Electric, Water, Heating and Sewer Companies
Section 393.010 - Corporations supplying gas, electricity or water — powers.
Section 393.020 - Authorizing laying of underground water mains — power of eminent domain.
Section 393.050 - Court shall appoint three commissioners to assess damages — payment of damages.
Section 393.060 - Number of owners may be joined in one petition.
Section 393.070 - Clerk of court shall give notice of petitions.
Section 393.080 - Cost of proceeding — how paid.
Section 393.090 - Corporation not authorized to enter or appropriate certain buildings.
Section 393.100 - Concerning the appropriation of property held by another corporation.
Section 393.108 - Hot weather rule, discontinuance of service prohibited, when.
Section 393.120 - Definition of terms.
Section 393.135 - Charges based on nonoperational property of electrical corporation prohibited.
Section 393.136 - Retroactive operation prohibited.
Section 393.147 - Loan programs, certain sewer and water corporations — authorized when, how.
Section 393.150 - Commission may fix rates after hearing — stay increase — burden of proof.
Section 393.160 - Inspection of gas, water and electric meters.
Section 393.170 - Approval of incorporation and franchises — certificate.
Section 393.180 - Right to issue stocks, bonds, notes subject to regulation.
Section 393.200 - Approval of issues of stocks, bonds and other forms of indebtedness.
Section 393.210 - Certificate of commission to be recorded — stock dividend prohibited.
Section 393.250 - Reorganizations of gas, electrical, water and sewer corporations.
Section 393.280 - Defense in case of excessive charges for gas, water, electricity or sewer service.
Section 393.291 - Steam heating companies, may file under small company rate procedures, when.
Section 393.292 - Nuclear power plant decommissioning, expense of, rate increase allowed, when, how.
Section 393.297 - Purpose of sections 393.298 to 393.302.
Section 393.298 - Definitions.
Section 393.300 - Customer bills in Braille or bold-faced type on request.
Section 393.302 - Tax on energy consumption, ordinance imposing tax, ballot measure required.
Section 393.356 - No modification or elimination of special rate under section 393.355.
Section 393.410 - Definitions.
Section 393.420 - Acquisition of right to use storage reservoir under publicly owned lands.
Section 393.430 - Gas storage company may exercise eminent domain — purposes — procedure.
Section 393.440 - Powers not to be exercised until approved by public service commission.
Section 393.450 - Buildings not to be condemned.
Section 393.460 - Strata and formations not subject to condemnation.
Section 393.470 - Limitation on condemnation of property held for public uses.
Section 393.480 - Law not to restrict other powers of eminent domain.
Section 393.490 - Rights of owner of land in condemned strata.
Section 393.500 - Gas in underground storage personal property.
Section 393.510 - Limitations to begin, when — cause deemed to accrue, when.
Section 393.550 - Definitions.
Section 393.553 - Written demand, notice, contents, refusal of access deemed denial of access, when.
Section 393.557 - Final order of access, exception — bond, amount — hearing.
Section 393.559 - Access, with sheriff, expenses of sheriff.
Section 393.561 - Damages awarded to utility customer, when — costs, court to determine who pays.
Section 393.563 - Other rights of access, not affected.
Section 393.565 - Appeals, customer must give bond.
Section 393.700 - Short title.
Section 393.705 - Definitions.
Section 393.720 - Commissions to be bodies public and corporate.
Section 393.725 - Bonds issued to be revenue bonds only — form of bonds.
Section 393.730 - Requirements of resolution authorizing bonds.
Section 393.735 - Additional security for bonds issued may be given, how.
Section 393.740 - Certain taxes applicable.
Section 393.745 - Refunding bonds may be issued.
Section 393.750 - Bonds legal investments for enumerated purposes.
Section 393.755 - Bonds may be repurchased.
Section 393.770 - Purchase agreements authorized — terms — not to constitute debt.
Section 393.831 - Articles of incorporation, amendment requirements.
Section 393.833 - Principal office, change of, procedure.
Section 393.837 - Securities law of Missouri not to apply, when.
Section 393.839 - Membership — meetings, annual, special — quorum — voting.
Section 393.841 - Voting districts may be provided, when, procedure.
Section 393.843 - Board of directors, powers and duties.
Section 393.845 - Officers, annual election, removal from office — employees and agents.
Section 393.849 - Excess revenues.
Section 393.851 - Prepayment of debt not prohibited.
Section 393.853 - Voluntary dissolution, articles, contents, submission to secretary of state.
Section 393.855 - Voluntary dissolution, procedure for winding up affairs.
Section 393.857 - Construction of laws relating to nonprofit sewer companies.
Section 393.861 - Private property of members exempt from execution for debts of company.
Section 393.900 - Nonprofit water companies may be organized — articles of incorporation.
Section 393.903 - Corporations may convert to nonprofit water companies, how.
Section 393.906 - Powers and duties.
Section 393.909 - May amend articles of incorporation, how.
Section 393.912 - Change of principal office, how.
Section 393.918 - Securities law not to apply, when.
Section 393.924 - Company territory may be divided into voting districts.
Section 393.927 - Board of directors, powers, duties, number, terms of office, procedure.
Section 393.930 - Officers, qualifications, powers and duties, terms of office.
Section 393.936 - Revenues to be distributed, when.
Section 393.939 - Prepayment of indebtedness permitted.
Section 393.942 - Voluntary dissolution before commencing operations.
Section 393.945 - Voluntary dissolution and windup of affairs after commencing operations.
Section 393.954 - Claims against insured nonprofit water company after dissolution, procedure.
Section 393.1000 - Definitions.
Section 393.1003 - Rate schedules, procedures to establish or change (St. Louis County).
Section 393.1009 - Definitions.
Section 393.1020 - Citation of law.
Section 393.1025 - Definitions.
Section 393.1040 - Encouragement of reduced consumption, objective of act.
Section 393.1045 - Cap on increase in retail charges based on renewable mandates.
Section 393.1150 - Suit or claim brought, measure of damages.
Section 393.1500 - Citation of law.
Section 393.1503 - Definitions.
Section 393.1610 - Small scale and private innovative technology investments — definitions.
Section 393.1640 - Growth project, discounts, when — requirements — discounts expire, when.
Section 393.1655 - Rate modifications, limitations on — definitions.