Effective - 28 Aug 2022, 2 histories
393.1655. Rate modifications, limitations on — definitions. — 1. This section applies to an electrical corporation that has elected to exercise any option under section 393.1400 and that has more than two hundred thousand Missouri retail customers in 2018, and shall continue to apply to such electrical corporation until December 31, 2023.
2. Notwithstanding any other provision of law and except as otherwise provided for by this section, an electrical corporation's base rates shall be held constant for a period starting on the date new base rates were established in the electrical corporation's last general rate proceeding concluded prior to the date the electrical corporation gave notice under subsection 5 of section 393.1400 and ending on the third anniversary of that date, unless a force majeure event as determined by the commission occurs. Whether a force majeure event has occurred shall be subject to commission review and approval in a general rate proceeding, and shall not preclude the commission from reviewing the prudence of any revenue reductions or costs incurred during any proceeding to set rates. This subsection shall not affect the electrical corporation's ability to adjust its nonbase rates during the three-year period provided for in this subsection as authorized by its commission-approved rate adjustment mechanisms arising under section 386.266, 393.1030, or 393.1075, or as authorized by any other rate adjustment mechanism authorized by law.
3. This subsection shall apply to electrical corporations that have a general rate proceeding pending before the commission as of the later of February 1, 2018, or August 28, 2018. If the difference between (a) the electrical corporation's average overall rate at any point in time while this section applies to the electrical corporation, and (b) the electrical corporation's average overall rate as of the date new base rates are set in the electrical corporation's most recent general rate proceeding concluded prior to the date the electrical corporation gave notice under section 393.1400, reflects a compound annual growth rate of more than three percent, the electrical corporation shall not recover any amount in excess of such three percent as a performance penalty.
4. This section shall apply to electrical corporations that do not have a general rate proceeding pending before the commission as of the later of February 1, 2018, or August 28, 2018. If the difference between (a) the electrical corporation's average overall rate at any point in time while this section applies to the electrical corporation, and (b) the average of (i) the electrical corporation's average overall rate as of the date new base rates are set in the electrical corporation's most recent general rate proceeding concluded prior to the date the electrical corporation gave notice under section 393.1400, and (ii) the electrical corporation's average overall rate set under section 393.137, reflects a compound annual growth rate of more than two and eighty-five hundredths percent, the electrical corporation shall not recover any amount in excess of such two and eighty-five hundredths percent as a performance penalty.
5. If a change in any rates charged under a rate adjustment mechanism approved by the commission under sections 386.266 and 393.1030 would cause an electrical corporation's average overall rate to exceed the compound annual growth rate limitation set forth in subsection 3 or 4 of this section, the electrical corporation shall reduce the rates charged under that rate adjustment mechanism in an amount sufficient to ensure that the compound annual growth rate limitation set forth in subsection 3 or 4 of this section is not exceeded due to the application of the rate charged under such mechanism and the performance penalties under such subsections are not triggered. Sums not recovered under any such mechanism because of any reduction in rates under such a mechanism pursuant to this subsection shall be deferred to and included in the regulatory asset arising under section 393.1400 or, if applicable, under the regulatory and ratemaking treatment ordered by the commission under section 393.1400, and recovered through an amortization in base rates in the same manner as deferrals under that section or order are recovered in base rates.
6. If the difference between (a) the electrical corporation's class average overall rate at any point in time while this section applies to the electrical corporation, and (b) the electrical corporation's class average overall rate as of the date rates are set in the electrical corporation's most recent general rate proceeding concluded prior to the date the electrical corporation gave notice under subsection 5 of section 393.1400, reflects a compound annual growth rate of more than two percent for the large power service rate class, the class average overall rate shall increase by an amount so that the increase shall equal a compound annual growth rate of two percent over such period for such large power service rate class, with the reduced revenues arising from limiting the large power service class average overall rate increase to two percent to be allocated to all the electrical corporation's other customer classes through the application of a uniform percentage adjustment to the revenue requirement responsibility of all the other customer classes.
7. For purposes of this section, the following terms shall mean:
(1) "Average base rate", a rate calculated by dividing the total retail revenue requirement for all the electrical corporation's rate classes by the total sales volumes stated in kilowatt-hours for all such rate classes used to set rates in the applicable general rate proceeding, exclusive of gross receipts tax, sales tax, and other similar pass-through taxes;
(2) "Average overall rate", a rate equal to the sum of the average base rate and the average rider rate;
(3) "Average rider rate", a rate calculated by dividing the total of the sums to be recovered from all customer classes under the electrical corporation's rate adjustment mechanisms in place other than a rate adjustment mechanism under section 393.1075 by the total sales volumes stated in kilowatt-hours for all of the electrical corporation's rate classes used to set rates under such rate adjustment mechanisms, exclusive of gross receipts tax, sales tax, and other similar pass-through taxes;
(4) "Class average base rate", a rate calculated by dividing the retail revenue requirement from the applicable general rate proceeding that is allocated to the electrical corporation's large power service rate class in that general rate proceeding, by the total sales volumes stated in kilowatt-hours for that class used to set rates in that general rate proceeding, exclusive of gross receipts tax, sales tax, and other similar pass-through taxes;
(5) "Class average overall rate", a rate equal to the sum of the class average base rate and the class average rider rate;
(6) "Class average rider rate", a rate calculated by dividing the total of the sums allocated for recovery from the large power service rate class under the electrical corporation's rate adjustment mechanisms in place other than a rate adjustment mechanism under section 393.1075 by the total sales volumes stated in kilowatt-hours for that class used to set rates under such rate adjustment mechanisms, exclusive of gross receipts tax, sales tax, and other similar pass-through taxes;
(7) "Force majeure event", an event or circumstance that occurs as a result of a weather event, an act of God, war, terrorism, or other event which threatens the financial integrity of the electrical corporation that causes a reduction in revenues, an increase in the cost of providing electrical service, or some combination thereof, and the event has an associated fiscal impact on the electrical corporation's operations equal to three percent or greater of the total revenue requirement established in the electrical corporation's last general rate proceeding after taking into account the financial impact specified in section 393.137. Any force majeure event shall be subject to commission review and approval, and shall not preclude the commission from reviewing the prudence of any revenue reductions or costs incurred during any proceeding to set rates;
(8) "Large power service rate class", the rate class of each corporation that requires the highest minimum monthly billing demand of all of the electrical corporation's rate classes in order to qualify as a member of such rate class, and that applies to qualifying customers only if they utilize the electrical corporation's distribution system.
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(L. 2018 S.B. 564, A.L. 2022 S.B. 745)
CROSS REFERENCE:
Nonseverability clause, 393.1675
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.