Effective - 28 Aug 2022, 2 histories
393.1715. Retirement of generating facilities, ratemaking principles and treatment as applied to base rates, retirement date, useful life, and depreciation — procedure — monitoring — coal-fixed generating assets in rate base — rulemaking authority. — 1. An electrical corporation may petition the commission for a determination of the ratemaking principles and treatment, as proposed by the electrical corporation, that will apply to the reflection in base rates of the electrical corporation's capital and noncapital costs associated with the proposed retirement of one or more of the electrical corporation's generating facilities. Without limiting the foregoing, such principles and treatment may also establish the retirement date and useful life parameters used to set depreciation rates for such facilities. Except as provided for in subsection 4 of this section, the ratemaking principles and treatment approved by the commission under this section for such facilities shall apply to the determination of the revenue requirement in each of the electrical corporation's post-determination general rate proceedings until such time as such facility is fully depreciated on the electrical corporation's books.
2. If the commission fails to issue a determination within two hundred fifteen days that a petition for determination of ratemaking principles and treatment is filed, the ratemaking principles and treatment proposed by the petitioning electrical corporation shall be deemed to have been approved by the commission.
3. Subject to the provisions of subsection 4 of this section, ratemaking principles and treatment approved by the commission, or deemed to have been approved under subsection 2 of this section, shall be binding for ratemaking purposes.
4. (1) An electrical corporation with ratemaking principles and treatment approved by the commission, or deemed to have been approved under subsection 2 of this section, shall monitor the major factors and circumstances relating to the facility to which such principles and treatment apply. Such factors and circumstances include, but are not limited to:
(a) Terrorist activity or an act of God;
(b) A significant change in federal or state tax laws;
(c) A significant change in federal utility laws or regulations or a significant change in generally accepted accounting principles;
(d) An unexpected, extended outage or shutdown of a major generating unit, other than any major generating unit shut down due to an extended outage at the time of the approval of the ratemaking principles and treatment;
(e) A significant change in the cost or reliability of power generation technologies;
(f) A significant change in fuel prices and wholesale electric market conditions;
(g) A significant change in the cost or effectiveness of emission control technologies;
(h) A significant change in the price of emission allowances;
(i) A significant change in the electrical corporation's load forecast;
(j) A significant change in capital market conditions;
(k) A significant change in the scope or effective dates of environmental regulations; or
(l) A significant change in federal or state environmental laws.
(2) If the electrical corporation determines that one or more major factor or circumstance has changed in a manner that warrants a change in the approved ratemaking principles and treatment, then it shall file a notice in the docket in which the approved ratemaking principles and treatment were established within forty-five days of any such determination. In its notification, the electrical corporation shall:
(a) Explain and specify the changes it contends are appropriate to the ratemaking principles and treatment and the reasons for the proposed changes;
(b) Provide a description of the alternatives that it evaluated and the process that it went through in developing its proposed changes; and
(c) Provide detailed workpapers that support the evaluation and the process whereby proposed changes were developed.
(3) If a party has concerns regarding the proposed changes, that party shall file a notice of its concerns within thirty days of the electrical corporation's filing. If the parties agree on a resolution of the concerns, the agreement shall be submitted to the commission for approval. If the parties do not reach agreement on changes to the ratemaking principles and treatment within ninety days of the date the electrical corporation filed its notice, whether the previously approved ratemaking and treatment will be changed shall be determined by the commission. If a party to the docket in which the approved ratemaking principles and treatment were approved believes that one or more major factor or circumstance has changed in a manner that warrants a change in the approved ratemaking principles and treatment and if the electrical corporation does not agree the principles and treatment should be changed, such party shall file a notice in the docket in which the approved ratemaking principles and treatment were established within forty-five days of any such determination. In its notification, such party shall:
(a) Explain and specify the changes it contends are appropriate to the ratemaking principles and treatment and the reasons for the proposed changes;
(b) Provide a description of the alternatives that it evaluated and the process that it went through in developing its proposed changes; and
(c) Provide detailed workpapers that support the evaluation and the process whereby proposed changes were developed.
(4) If a party, including the electrical corporation, has concerns regarding the proposed changes, that party shall file a notice of its concerns within thirty days of the other party's filing. If the parties do not reach agreement on changes to the ratemaking principles and treatment within ninety days of the date the notice was filed, whether the previously approved ratemaking and treatment will be changed shall be determined by the commission.
5. A determination of ratemaking principles and treatment under this section does not preclude an electrical corporation from also petitioning the commission under either or both of sections 393.1700 and 393.1705, provided that any costs to which such ratemaking principles and treatment would have applied in the electrical corporation's general rate proceedings which become funded by securitized utility tariff bond proceeds from a securitized utility tariff bond issued under section 393.1700 shall not thereafter be reflected in the electrical corporation's base rates.
6. If determined by the commission to be just, reasonable, and necessary for the provision of safe and adequate service, the electrical corporation shall be permitted to retain coal-fired generating assets in rate base and recover prudently incurred costs associated with operating the coal-fired assets, including at a low capacity factor, or that are offline and providing capacity only in order to remain in service to customers for reliability during events such as extreme weather.
7. The commission may promulgate rules necessary to implement the provisions of sections 393.1700 to 393.1715. 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, 2021, shall be invalid and void.
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(L. 2021 H.B. 734, A.L. 2022 S.B. 745)
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.