hb0208t_22.ps
FIRST REGULAR SESSION
[TRULY AGREED TO AND FINALLY PASSED]
SENATE SUBSTITUTE FOR
SENATE COMMITTEE SUBSTITUTE FOR
HOUSE BILL NO. 208
92ND GENERAL ASSEMBLY
0941S.14T 2003
AN ACT
To repeal sections 91.030, 386.050, 386.210, 386.756, 392.200, 393.110, and 393.310, RSMo,
and to enact in lieu thereof sixteen new sections relating to the public service
commission, with an emergency clause for certain sections.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 91.030, 386.050, 386.210, 386.756, 392.200, 393.110, and 393.310,
RSMo, are repealed and sixteen new sections enacted in lieu thereof, to be known as sections
91.026, 91.030, 386.050, 386.135, 386.210, 386.756, 392.200, 393.110, 393.310, 393.1000,
393.1003, 393.1006, 393.1009, 393.1012, 393.1015, and 1, to read as follows:
91.026. 1. As used in this section, the following terms mean:
(1) "Commission", the Missouri public service commission;
(2) "Aluminum smelting facility", a facility whose primary industry is the smelting
of aluminum and primary metals, Standard Industrial Classification Code 3334, is located
in a county of the second classification, which has used over three million megawatt hours
of electricity during a calendar year, and has had electrical service provided to said facility
in the past, in part or whole, by a municipally owned utility and, in part or whole, by an
electric generating cooperative owned by rural electric cooperatives;
(3) "Delivery services", transmission, distribution, or metering of electric power
and energy or services ancillary thereto or related services;
(4) "Municipally owned utility", a utility as defined in subdivision (1) of subsection
1 of section 91.025;
(5) "Local electric service utility", an electrical corporation engaged in the
furnishing of local electric service to consumers under a certificate of convenience and
necessity issued by the commission, any municipal electric distribution system or electric
cooperative.
2. Notwithstanding any provisions of law to the contrary, any aluminum smelting
facility shall have the right to purchase and contract to purchase electric power and energy
and delivery services from any provider, wherever found or located, at whatever rates or
charges as contracted for, and such periods or times as is needed or necessary or
convenient for the operation of such aluminum smelting facility and for no other purpose,
notwithstanding any past circumstances of supply. Any aluminum smelting facility
purchasing or contracting to purchase electric power and energy pursuant to this section
shall not resell such electric power and energy to any party except the original providers
of such electric power and energy.
3. Notwithstanding the provisions of section 91.025, section 393.106, RSMo, and
section 394.315, RSMo, to the contrary, any provider of such electric power and energy
and delivery services, whether or not otherwise under Missouri regulatory jurisdiction,
shall have the right to transact for and sell electric power and energy and delivery services
to an aluminum smelting facility. Any transactions or contracts pursuant to this section
for electric power and energy and delivery services shall not be subject to the jurisdiction
of the commission with regard to the determination of rates.
4. When current electric power and energy is being supplied in part or in whole by
a municipally owned utility and in part or whole by an electric generating cooperative
owned by rural electric cooperatives and not under any contract authorized pursuant to
this section, a replacement contract pursuant to the provisions of subsections 2 and 3 of this
section shall provide for all of the electric power and energy and delivery services
requirements of the aluminum smelter and shall meet the following criteria:
(1) The aluminum smelting facility's change of supplier shall have no negative
financial impact on any past supplier or suppliers or to other electricity customers of such
supplier or suppliers;
(2) The supply arrangements made by the aluminum smelting facility when
operated in coordination with the local electric infrastructure shall not reduce the
reliability of service to other customers or the safety of any person;
(3) The aluminum smelting facility's change of electric supplier shall not cause a
reduction in tax revenue to the state of Missouri or any political subdivision;
(4) No billing or metering functions of any municipally owned utility will be
changed or affected as a result of a change of electric supplier by such aluminum smelting
facility.
5. No local electric service utility provider of electric power and energy or delivery
services shall have any obligation to supply or deliver backup, peaking or emergency
power to a aluminum smelting facility exercising its rights under this section, nor liability
for inability or failure to provide such power, except as may be established by written
contract.
6. Once an aluminum smelting facility has purchased electric power pursuant to
its rights pursuant to this section, no past supplier of energy and related services shall have
any obligation to provide electric power and energy and delivery services to such
aluminum smelting facility except as may be established by written contract.
7. The provisions of this section recognize highly unique circumstances of
aluminum smelting facilities and are not to be interpreted as condoning or conceding the
suitability of retail electric restructuring for any customer or class of customers in the state
of Missouri.
91.030. Any city, town or village in this state, having authority to maintain and operate
an electric light and power plant, may procure electric current and ancillary services for that
purpose from any other city, owning and operating such plant, or other lawful supplier and to
that end may enter into a contract therefor with such city or other supplier having such plant
for such period and upon such terms as may be agreed by the contracting parties solely on
the approval by the governing board or council of such municipality owned or operated
electric power system or by its duly authorized representative without further regulatory
or public approval, notwithstanding any provisions of law to the contrary.
386.050. 1. The commission shall consist of five members who shall be appointed by
the governor, with the advice and consent of the senate, and one of whom shall be designated by
the governor to be [chairman] chair of [said] the commission. Each commissioner, at the time
of [his] the commissioner's appointment and qualification, shall be a resident of the state of
Missouri, and shall have resided in [said] the state for a period of at least five years next
preceding [his] the appointment and qualification, and [he] shall also be a qualified voter therein
and not less than twenty-five years of age. Upon the expiration of each of the terms of office of
the first commissioners, the term of office of each commissioner thereafter appointed shall be
six years from the time of [his] the commissioner's appointment and qualification and until his
successor shall qualify. Vacancies in [said] the commission shall be filled by the governor for
the unexpired term.
386.135. 1. The commission shall have an independent technical advisory staff of
up to six full time employees. The advisory staff shall have expertise in accounting,
economics, finance, engineering/utility operations, law, or public policy.
2. In addition, each commissioner shall also have the authority to retain one
personal advisor, who shall be deemed a member of the technical advisory staff. The
personal advisors will serve at the pleasure of the individual commissioner whom they
serve and shall possess expertise in one or more of the following fields: accounting,
economics, finance, engineering/utility operations, law, or public policy.
3. The commission shall only hire technical advisory staff pursuant to subsections
1 and 2 of this section if there is a corresponding elimination in comparable staff positions
for commission staff to offset the hiring of such technical advisory staff on a cost neutral
basis. Such technical advisory staff shall be hired on or before July 1, 2005.
4. It shall be the duty of the technical advisory staff to render advice and assistance
to the commissioners and the commission's hearing officers on technical matters within
their respective areas of expertise that may arise during the course of proceedings before
the commission.
5. The technical advisory staff shall also update the commission and the
commission's hearing officers periodically on developments and trends in public utility
regulation, including updates comparing the use, nature, and effect of various regulatory
practices and procedures as employed by the commission and public utility commissions
in other jurisdictions.
6. Each member of the technical advisory staff shall be subject to any applicable
ex parte or conflict of interest requirements in the same manner and to the same degree as
any commissioner, provided that neither any person regulated by, appearing before, or
employed by the commission shall be permitted to offer such member a different
appointment or position during that member's tenure on the technical advisory staff.
7. No employee of a company or corporation regulated by the public service
commission, no employee of the office of public counsel or the public counsel, and no staff
members of either the utility operations division or utility services division, who, were an
employee or staff member on, during the two years immediately preceding, or anytime
after August 28, 2003, may be a member of the commission's technical advisory staff for
two years following the termination of their employment with the corporation, office of
public counsel or commission staff member.
8. The technical advisory staff shall never be a party to any case before the
commission.
386.210. 1. The commission may confer in person, or by correspondence, by attending
conventions, or in any other way, with the members of the public, any public utility or similar
commission of this and other states and the United States of America, or any official, agency
or instrumentality thereof, on any matter relating to the performance of its duties.
2. Such communications may address any issue that at the time of such
communication is not the subject of a case that has been filed with the commission.
3. Such communications may also address substantive or procedural matters that
are the subject of a pending filing or case in which no evidentiary hearing has been
scheduled, provided that the communication:
(1) Is made at a public agenda meeting of the commission where such matter has
been posted in advance as an item for discussion or decision;
(2) Is made at a forum where representatives of the public utility affected thereby,
the office of public counsel, and any other party to the case are present; or
(3) If made outside such agenda meeting or forum, is subsequently disclosed to the
public utility, the office of the public counsel, and any other party to the case in accordance
with the following procedure:
(a) If the communication is written, the person or party making the communication
shall no later than the next business day following the communication, file a copy of the
written communication in the official case file of the pending filing or case and serve it
upon all parties of record;
(b) If the communication is oral, the party making the oral communication shall
no later than the next business day following the communication file a memorandum in the
official case file of the pending case disclosing the communication and serve such
memorandum on all parties of record. The memorandum must contain a summary of the
substance of the communication and not merely a listing of the subjects covered.
4. Nothing in this section or any other provision of law shall be construed as
imposing any limitation on the free exchange of ideas, views, and information between any
person and the commission or any commissioner, provided that such communications
relate to matters of general regulatory policy and do not address the merits of the specific
facts, evidence, claims, or positions presented or taken in a pending case unless such
communications comply with the provisions of subsection 3 of this section.
5. The commission and any commissioner may also advise any member of the
general assembly or other governmental official of the issues or factual allegations that are
the subject of a pending case, provided that the commission or commissioner does not
express an opinion as to the merits of such issues or allegations, and may discuss in a public
agenda meeting with parties to a case in which an evidentiary hearing has been scheduled,
any procedural matter in such case or any matter relating to a unanimous stipulation or
agreement resolving all of the issues in such case.
[2.] 6. The commission may enter into and establish fair and equitable cooperative
agreements or contracts with or act as an agent or licensee for the United States of America, or
any official, agency or instrumentality thereof, or any public utility or similar commission of
other states, that are proper, expedient, fair and equitable and in the interest of the state of
Missouri and the citizens thereof, for the purpose of carrying out its duties [under] pursuant to
section 386.250 as limited and supplemented by section 386.030 and to that end the commission
may receive and disburse any contributions, grants or other financial assistance as a result of or
pursuant to such agreements or contracts. Any contributions, grants or other financial assistance
so received shall be deposited in the public service commission utility fund or the state highway
commission fund depending upon the purposes for which they are received.
[3.] 7. The commission may make joint investigations, hold joint hearings within or
without the state, and issue joint or concurrent orders in conjunction or concurrence with any
railroad, public utility or similar commission, of other states or the United States of America, or
any official, agency or any instrumentality thereof, except that in the holding of such
investigations or hearings, or in the making of such orders, the commission shall function under
agreements or contracts between states or under the concurrent power of states to regulate
interstate commerce, or as an agent of the United States of America, or any official, agency or
instrumentality thereof, or otherwise.
386.756. 1. Except by an affiliate, a utility may not engage in HVAC services, unless
otherwise provided in subsection 7 or subsection 8 of this section.
2. No affiliate or utility contractor may use any vehicles, service tools, instruments,
employees, or any other utility assets, the cost of which are recoverable in the regulated rates for
utility service, to engage in HVAC services unless the utility is compensated for the use of such
assets at cost to the utility.
3. A utility may not use or allow any affiliate or utility contractor to use the name of such
utility to engage in HVAC services unless the utility, affiliate or utility contractor discloses, in
plain view and in bold type on the same page as the name is used on all advertisements or in
plain audible language during all solicitations of such services, a disclaimer that states the
services provided are not regulated by the public service commission.
4. A utility may not engage in or assist any affiliate or utility contractor in engaging in
HVAC services in a manner which subsidizes the activities of such utility, affiliate or utility
contractor to the extent of changing the rates or charges for the utility's regulated services above
or below the rates or charges that would be in effect if the utility were not engaged in or assisting
any affiliate or utility contractor in engaging in such activities.
5. Any affiliates or utility contractors engaged in HVAC services shall maintain accounts,
books and records separate and distinct from the utility.
6. The provisions of this section shall apply to any affiliate or utility contractor engaged
in HVAC services that is owned, controlled or under common control with a utility providing
regulated utility service in this state or any other state.
7. A utility engaging in HVAC services in this state five years prior to August 28, 1998,
may continue providing, to existing as well as new customers, the same type of services as those
provided by the utility five years prior to August 28, 1998. The provisions of this section only
apply to the area of service which the utility was actually supplying service to on a regular
basis prior to August 28, 1993. The provisions of this section shall not apply to any
subsequently expanded areas of service made by a utility through either existing affiliates
or subsidiaries or through affiliates or subsidiaries purchased after August 28, 1993, unless
such services were being provided in the expanded area prior to August 28, 1993.
8. The provisions of this section shall not be construed to prohibit a utility from providing
emergency service, providing any service required by law or providing a program pursuant to an
existing tariff, rule or order of the public service commission.
9. A utility that violates any provision of this section is guilty of a civil offense and may
be subject to a civil penalty of up to twelve thousand five hundred dollars for each violation. The
attorney general may enforce the provisions of this section pursuant to any powers granted
to him or her pursuant to any relevant provisions provided by Missouri statutes or the
Missouri Constitution.
10. Any utility claiming an exemption as provided in subsection 7 of this section
shall comply with all applicable state and local laws, ordinances or regulations relating to
the installation or maintenance of HVAC systems including all permit requirements. A
continuing pattern of failure to comply with said requirements shall provide the basis for
a finding by any court of competent jurisdiction or the public service commission that the
utility has waived its claim of exemption pursuant to subsection 7 of this section.
392.200. 1. Every telecommunications company shall furnish and provide with respect
to its business such instrumentalities and facilities as shall be adequate and in all respects just
and reasonable. All charges made and demanded by any telecommunications company for any
service rendered or to be rendered in connection therewith shall be just and reasonable and not
more than allowed by law or by order or decision of the commission. Every unjust or
unreasonable charge made or demanded for any such service or in connection therewith or in
excess of that allowed by law or by order or decision of the commission is prohibited and
declared to be unlawful.
2. No telecommunications company shall directly or indirectly or by any special rate,
rebate, drawback or other device or method charge, demand, collect or receive from any person
or corporation a greater or less compensation for any service rendered or to be rendered with
respect to telecommunications or in connection therewith, except as authorized in this chapter,
than it charges, demands, collects or receives from any other person or corporation for doing a
like and contemporaneous service with respect to telecommunications under the same or
substantially the same circumstances and conditions. Promotional programs for
telecommunications services may be offered by telecommunications companies for periods of
time so long as the offer is otherwise consistent with the provisions of this chapter and approved
by the commission. Neither this subsection nor subsection 3 of this section shall be construed
to prohibit an economy rate telephone service offering. This section and section 392.220 to the
contrary notwithstanding, the commission is authorized to approve tariffs filed by local exchange
telecommunications companies which elect to provide reduced charges for residential
telecommunications connection services pursuant to the lifeline connection assistance plan as
promulgated by the federal communications commission. Eligible subscribers for such
connection services shall be those as defined by participating local exchange telecommunications
company tariffs.
3. No telecommunications company shall make or give any undue or unreasonable
preference or advantage to any person, corporation or locality, or subject any particular person,
corporation or locality to any undue or unreasonable prejudice or disadvantage in any respect
whatsoever except that telecommunications messages may be classified into such classes as are
just and reasonable, and different rates may be charged for the different classes of messages.
4. (1) No telecommunications company may define a telecommunications service as a
different telecommunications service based on the geographic area or other market segmentation
within which such telecommunications service is offered or provided, unless the
telecommunications company makes application and files a tariff or tariffs which propose relief
from this subsection. Any such tariff shall be subject to the provisions of sections 392.220 and
392.230 and in any hearing thereon the burden shall be on the telecommunications company to
show, by clear and convincing evidence, that the definition of such service based on the
geographic area or other market within which such service is offered is reasonably necessary to
promote the public interest and the purposes and policies of this chapter.
(2) It is the intent of this act to bring the benefits of competition to all customers and to
ensure that incumbent and alternative local exchange telecommunications companies have the
opportunity to price and market telecommunications services to all prospective customers in any
geographic area in which they compete. To promote the goals of the federal
Telecommunications Act of 1996, for an incumbent local exchange telecommunications
company in any exchange where an alternative local exchange telecommunications company has
been certified and is providing basic local telecommunications services or switched exchange
access services, or for an alternative local exchange telecommunications company, the
commission shall review and approve or reject, within forty-five days of filing, tariffs for
proposed different services as follows:
(a) For services proposed on an exchange-wide basis, it shall be presumed that a tariff
which defines and establishes prices for a local exchange telecommunications service or
exchange access service as a different telecommunications service in the geographic area, no
smaller than an exchange, within which such local exchange telecommunications service or
exchange access service is offered is reasonably necessary to promote the public interest and the
purposes and policies of this chapter;
(b) For services proposed in a geographic area smaller than an exchange or other market
segmentation within which or to whom such telecommunications service is proposed to be
offered, a local exchange telecommunications company may petition the commission to define
and establish a local exchange telecommunications service or exchange access service as a
different local exchange telecommunications service or exchange access service. The
commission shall approve such a proposal if it finds, based upon clear and convincing evidence,
that such service in a smaller geographic area or such other market segmentation is in the public
interest and is reasonably necessary to promote competition and the purposes of this chapter.
Upon approval of such a smaller geographic area or such other market segmentation for a
different service for one local exchange telecommunications company, all other local exchange
telecommunications companies certified to provide service in that exchange may file a tariff to
use such smaller geographic area or such other market segmentation to provide that service;
(c) For proposed different services described in paragraphs (a) and (b) of this
subdivision, the local exchange telecommunications company which files a tariff to provide such
service shall provide the service to all similarly situated customers, upon request in accordance
with that company's approved tariff, in the exchange or geographic area smaller than an exchange
or such other market segmentation for which the tariff was filed, and no price proposed for such
service by an incumbent local exchange telecommunications company, other than for a
competitive service, shall be lower than its long run incremental cost, as defined in section
386.020, RSMo;
(3) The commission, on its own motion or upon motion of the public counsel, may by
order, after notice and hearing, define a telecommunications service offered or provided by a
telecommunications company as a different telecommunications service dependent upon the
geographic area or other market within which such telecommunications service is offered or
provided and apply different service classifications to such service only upon a finding, based
on clear and convincing evidence, that such different treatment is reasonably necessary to
promote the public interest and the purposes and policies of this chapter.
5. No telecommunications company may charge a different price per minute or other unit
of measure for the same, substitutable, or equivalent interexchange telecommunications service
provided over the same or equivalent distance between two points without filing a tariff for the
offer or provision of such service pursuant to sections 392.220 and 392.230. In any proceeding
under sections 392.220 and 392.230 wherein a telecommunications company seeks to charge a
different price per minute or other unit of measure for the same, substitutable, or equivalent
interexchange service, the burden shall be on the subject telecommunications company to show
that such charges are in the public interest and consistent with the provisions and purposes of this
chapter. The commission may modify or prohibit such charges if the subject telecommunications
company fails to show that such charges are in the public interest and consistent with the
provisions and purposes of this chapter. This subsection shall not apply to reasonable price
discounts based on the volume of service provided, so long as such discounts are
nondiscriminatory and offered under the same rates, terms, and conditions throughout a
telecommunications company's certificated or service area.
6. Every telecommunications company operating in this state shall receive, transmit and
deliver, without discrimination or delay, the conversations and messages of every other
telecommunications company with whose facilities a connection may have been made.
7. The commission shall have power to provide the limits within which
telecommunications messages shall be delivered without extra charge.
8. Customer specific pricing is authorized for dedicated, nonswitched, private line and
special access services and for central office-based switching systems which substitute for
customer premise, private branch exchange (PBX) services, provided such customer specific
pricing shall be equally available to incumbent and alternative local exchange
telecommunications companies.
9. This act shall not be construed to prohibit the commission, upon determining that it
is in the public interest, from altering local exchange boundaries, provided that the incumbent
local exchange telecommunications company or companies serving each exchange for which the
boundaries are altered provide notice to the commission that the companies approve the
alteration of exchange boundaries.
10. Notwithstanding any other provision of this section, every telecommunications
company is authorized to offer term agreements of up to five years on any of its
telecommunications services.
11. Notwithstanding any other provision of this section, every telecommunications
company is authorized to offer discounted rates or other special promotions on any of its
telecommunications services to any new and/or former customers.
393.110. 1. Sections 393.110 to 393.285 shall apply to the manufacture and furnishing
of gas for light, heat or power and the furnishing of natural gas for light, heat or power, and the
generation, furnishing and transmission of electricity for light, heat or power, the supplying and
distributing of water for any purpose whatsoever, and the furnishing of a sewer system for the
collection, carriage, treatment or disposal of sewage for municipal, domestic or other beneficial
or necessary purpose.
2. Notwithstanding any provision in chapter 386, RSMo, or this chapter to the
contrary, the public service commission shall not have jurisdiction over the rates,
financing, accounting, or management of any electrical corporation which is required by
its bylaws to operate on the not-for-profit cooperative business plan, with its consumers
who receive service as the stockholders of such corporation, and which holds a certificate
of public convenience and necessity to serve a majority of its consumer-owners in counties
of the third classification as of August 28, 2003. Nothing in this section shall be construed
as amending or superseding the commission's authority granted in subsection 1 of section
386.310, RSMo, in section 393.106, and sections 386.800 and 394.312,RSMo.
393.310. 1. This section shall only apply to gas corporations as defined in section
386.020, RSMo. This section shall not affect any existing laws and shall only apply to the
program established pursuant to this section.
2. As used in this section, the following terms mean:
(1) "Aggregate", the combination of natural gas supply and transportation services,
including storage, requirements of eligible school entities served through a Missouri gas
corporation's delivery system;
(2) "Commission", the Missouri public service commission; and
(3) "Eligible school entity" shall include any seven-director, urban or metropolitan
school district as defined pursuant to section 160.011, RSMo, and shall also include, one year
after July 11, 2002, and thereafter, any school for elementary or secondary education situated in
this state, whether a charter, private, or parochial school or school district.
3. Each Missouri gas corporation shall file with the commission, by August 1, 2002, a
set of experimental tariffs applicable the first year to public school districts and applicable to all
school districts, whether charter, private, public, or parochial, thereafter.
4. The tariffs required pursuant to subsection 3 of this section shall, at a minimum:
(1) Provide for the aggregate purchasing of natural gas supplies and pipeline
transportation services on behalf of eligible school entities in accordance with aggregate
purchasing contracts negotiated by and through a not-for-profit school association;
(2) Provide for the resale of such natural gas supplies, including related transportation
service costs, to the eligible school entities at the gas corporation's cost of purchasing of such gas
supplies and transportation, plus all applicable distribution costs, plus an aggregation and
balancing fee to be determined by the commission, not to exceed four- tenths of one cent per
therm delivered during the first year; and
(3) Not require telemetry or special metering, except for individual school meters over
one hundred thousand therms annually.
5. The commission may suspend the tariff as required pursuant to subsection 3 of this
section for a period ending no later than November 1, 2002, and shall approve such tariffs upon
finding that implementation of the aggregation program set forth in such tariffs will not have any
negative financial impact on the gas corporation, its other customers or local taxing authorities,
and that the aggregation charge is sufficient to generate revenue at least equal to all incremental
costs caused by the experimental aggregation program. Except as may be mutually agreed by
the gas corporation and eligible school entities and approved by the commission, such
tariffs shall not require eligible school entities to be responsible for pipeline capacity
charges for longer than is required by the gas corporation's tariff for large industrial or
commercial basic transportation customers.
6. The commission shall treat the gas corporation's pipeline capacity costs for
associated eligible school entities in the same manner as for large industrial or commercial
basic transportation customers, which shall not be considered a negative financial impact
on the gas corporation, its other customers, or local taxing authorities, and the commission
may adopt by order such other procedures not inconsistent with this section which the
commission determines are reasonable or necessary to administer the experimental program.
7. This section shall terminate June 30, 2005.
393.1000. As used in sections 393.1000 to 393.1006, the following terms mean:
(1) “Appropriate pretax revenues”, the revenues necessary to produce net operating
income equal to:
(a) The water corporation's weighted cost of capital multiplied by the net original
cost of eligible infrastructure system replacements, including recognition of accumulated
deferred income taxes and accumulated depreciation associated with eligible infrastructure
system replacements which are included in a currently effective ISRS; and
(b) Recover state, federal, and local income or excise taxes applicable to such
income; and
(c) Recover all other ISRS costs;
(2) “Commission”, the Missouri public service commission;
(3) “Eligible infrastructure system replacements”, water utility plant projects that:
(a) Replace or extend the useful life of existing infrastructure;
(b) Are in service and used and useful;
(c) Do not increase revenues by directly connecting the infrastructure replacement
to new customers; and
(d) Were not included in the water corporation's rate base in its most recent general
rate case;
(4) “ISRS”, infrastructure system replacement surcharge;
(5) “ISRS costs”, depreciation expenses, and property taxes that will be due within
twelve months of the ISRS filing;
(6) “ISRS revenues”, revenues produced through an ISRS, exclusive of revenues
from all other rates and charges;
(7) “Water corporation”, every corporation, company, association, joint stock
company or association, partnership, and person, their lessees, trustees, or receivers
appointed by any court whatsoever, owning, operating, controlling, or managing any plant
or property, dam or water supply, canal, or power station, distributing or selling for
distribution, or selling or supplying for gain any water to more than ten thousand
customers;
(8) “Water utility plant projects”, may consist only of the following:
(a) Mains, and associated valves and hydrants, installed as replacements for existing
facilities that have worn out or are in deteriorated condition;
(b) Main cleaning and relining projects; and
(c) Facilities relocations required due to construction or improvement of a highway,
road, street, public way, or other public work by or on behalf of the United States, this
state, a political subdivision of this state, or another entity having the power of eminent
domain provided that the costs related to such projects have not been reimbursed to the
water corporation.
393.1003. 1. Notwithstanding any provisions of chapter 386, RSMo, and this chapter
to the contrary, as of August 28, 2003, a water corporation providing water service in a
county with a charter form of government and with more than one million inhabitants may
file a petition and proposed rate schedules with the commission to establish or change ISRS
rate schedules that will allow for the adjustment of the water corporation's rates and
charges to provide for the recovery of costs for eligible infrastructure system replacements
made in such county with a charter form of government and with more than one million
inhabitants; provided that an ISRS, on an annualized basis, must produce ISRS revenues
of at least one million dollars but not in excess of ten percent of the water corporation's
base revenue level approved by the commission in the water corporation's most recent
general rate proceeding. An ISRS and any future changes thereto shall be calculated and
implemented in accordance with the provisions of sections 393.1000 to 393.1006. ISRS
revenues shall be subject to refund based upon a finding and order of the commission, to
the extent provided in subsections 5 and 8 of section 393.1006.
2. The commission shall not approve an ISRS for a water corporation in a county
with a charter form of government and with more than one million inhabitants that has
not had a general rate proceeding decided or dismissed by issuance of a commission order
within the past three years, unless the water corporation has filed for or is the subject of
a new general rate proceeding.
3. In no event shall a water corporation collect an ISRS for a period exceeding three
years unless the water corporation has filed for or is the subject of a new general rate
proceeding; provided that the ISRS may be collected until the effective date of new rate
schedules established as a result of the new general rate proceeding, or until the subject
general rate proceeding is otherwise decided or dismissed by issuance of a commission
order without new rates being established.
393.1006. 1. (1) At the time that a water corporation files a petition with the
commission seeking to establish or change an ISRS, it shall submit proposed ISRS rate
schedules and its supporting documentation regarding the calculation of the proposed
ISRS with the petition, and shall serve the office of the public counsel with a copy of its
petition, its proposed rate schedules and its supporting documentation.
(2) Upon the filing of a petition, and any associated rate schedules, seeking to
establish or change an ISRS, the commission shall publish notice of the filing.
2. (1) When a petition, along with any associated proposed rate schedules, is filed
pursuant to the provisions of sections 393.1000 to 393.1006, the commission shall conduct
an examination of the proposed ISRS.
(2) The staff of the commission may examine information of the water corporation
to confirm that the underlying costs are in accordance with the provisions of sections
393.1000 to 393.1006, and to confirm proper calculation of the proposed charge, and may
submit a report regarding its examination to the commission not later than sixty days after
the petition is filed. No other revenue requirement or ratemaking issues shall be examined
in consideration of the petition or associated proposed rate schedules filed pursuant to the
provisions of sections 393.1000 to 393.1006.
(3) The commission may hold a hearing on the petition and any associated rate
schedules and shall issue an order to become effective not later than one hundred twenty
days after the petition is filed.
(4) If the commission finds that a petition complies with the requirements of sections
393.1000 to 393.1006, the commission shall enter an order authorizing the water
corporation to impose an ISRS that is sufficient to recover appropriate pretax revenues,
as determined by the commission pursuant to the provisions of sections 393.1000 to
393.1006.
3. A water corporation may effectuate a change in its rate pursuant to this section
no more often than two times every twelve months.
4. In determining the appropriate pretax revenues, the commission shall consider
only the following factors:
(1) The current state, federal, and local income or excise tax rates;
(2) The water corporation's actual regulatory capital structure as determined
during the most recent general rate proceeding of the water corporation;
(3) The actual cost rates for the water corporation's debt and preferred stock as
determined during the most recent general rate proceeding of the water corporation;
(4) The water corporation's cost of common equity as determined during the most
recent general rate proceeding of the water corporation;
(5) The current property tax rate or rates applicable to the eligible infrastructure
system replacements;
(6) The current depreciation rates applicable to the eligible infrastructure system
replacements;
(7) In the event information called for in subdivisions (2), (3), and (4) is unavailable
and the commission is not provided with such information on an agreed-upon basis, the
commission shall refer to the testimony submitted during the most recent general rate
proceeding of the water corporation and use, in lieu of any such unavailable information,
the recommended capital structure, recommended cost rates for debt and preferred stock,
and recommended cost of common equity that would produce the average weighted cost
of capital based upon the various recommendations contained in such testimony.
5. (1) An ISRS shall be calculated based upon the amount of ISRS costs that are
eligible for recovery during the period in which the surcharge will be in effect and upon
the applicable customer class billing determinants utilized in designing the water
corporation's customer rates in its most recent general rate proceeding. The commission
shall, however, only allow such surcharges to apply to classes of customers receiving a
benefit from the subject water utility plant projects or shall prorate the surcharge
according to the benefit received by each class of customers; provided that the ISRS shall
be applied in a manner consistent with the customer class cost-of-service study recognized
by the commission in the water corporation's most recent general rate proceeding, if
applicable, and with the rate design methodology utilized to develop the water
corporation's rates resulting from its most recent general rate proceeding.
(2) At the end of each twelve-month calendar period that an ISRS is in effect, the
water corporation shall reconcile the differences between the revenues resulting from an
ISRS and the appropriate pretax revenues as found by the commission for that period and
shall submit the reconciliation and a proposed ISRS adjustment to the commission for
approval to recover or refund the difference, as appropriate, through adjustment of an
ISRS.
6. (1) A water corporation that has implemented an ISRS pursuant to the provisions
of sections 393.1000 to 393.1006 shall file revised rate schedules to reset the ISRS to zero
when new base rates and charges become effective for the water corporation following a
commission order establishing customer rates in a general rate proceeding that
incorporates in the utility's base rates subject to subsections 8 and 9 of this section eligible
costs previously reflected in an ISRS.
(2) Upon the inclusion in a water corporation's base rates subject to subsections 8
and 9 of this section of eligible costs previously reflected in an ISRS, the water corporation
shall immediately thereafter reconcile any previously unreconciled ISRS revenues as
necessary to ensure that revenues resulting from the ISRS match as closely as possible the
appropriate pretax revenues as found by the commission for that period.
7. A water corporation's filing of a petition to establish or change an ISRS pursuant
to the provisions of sections 393.1000 to 393.1006 shall not be considered a request for a
general increase in the water corporation's base rates and charges.
8. Commission approval of a petition, and any associated rate schedules, to establish
or change an ISRS pursuant to the provisions of sections 393.1000 to 393.1006 shall in no
way be binding upon the commission in determining the ratemaking treatment to be
applied to eligible infrastructure system replacements during a subsequent general rate
proceeding when the commission may undertake to review the prudence of such costs. In
the event the commission disallows, during a subsequent general rate proceeding, recovery
of costs associated with eligible infrastructure system replacements previously included in
an ISRS, the water corporation shall offset its ISRS in the future as necessary to recognize
and account for any such overcollections.
9. Nothing contained in sections 393.1000 to 393.1006 shall be construed to impair
in any way the authority of the commission to review the reasonableness of the rates or
charges of a water corporation, including review of the prudence of eligible infrastructure
system replacements made by a water corporation, pursuant to the provisions of section
386.390 RSMo.
10. The commission shall have authority to promulgate rules for the implementation
of sections 393.1000 to 393.1006, but only to the extent such rules are consistent with, and
do not delay the implementation of, the provisions of sections 393.1000 to 393.1006. Any
rule or portion of a rule, as that term is defined in section 536.010, RSMo, 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, RSMo, and, if applicable, section
536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the
powers vested with the general assembly pursuant to chapter 536, RSMo, 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, 2003, shall be invalid and void.
393.1009. As used in sections 393.1009 to 393.1015, the following terms mean:
(1) “Appropriate pretax revenues”, the revenues necessary to produce net operating
income equal to:
(a) The gas corporation's weighted cost of capital multiplied by the net original cost
of eligible infrastructure system replacements, including recognition of accumulated
deferred income taxes and accumulated depreciation associated with eligible infrastructure
system replacements which are included in a currently effective ISRS; and
(b) Recover state, federal, and local income or excise taxes applicable to such
income; and
(c) Recover all other ISRS costs;
(2) “Commission”, the Missouri public service commission;
(3) “Eligible infrastructure system replacements”, gas utility plant projects that:
(a) Do not increase revenues by directly connecting the infrastructure replacement
to new customers;
(b) Are in service and used and useful;
(c) Were not included in the gas corporation's rate base in its most recent general
rate case; and
(d) Replace, or extend the useful life of an existing infrastructure;
(4) “Gas corporation”, every corporation, company, association, joint stock
company or association, partnership and person, their lessees, trustees or receivers
appointed by any court whatsoever, owning, operating, controlling, or managing any gas
plant operating for public use under privilege, license, or franchise now or hereafter
granted by the state or any political subdivision, county, or municipality thereof as defined
in section 386.020, RSMo;
(5) “Gas utility plant projects”, may consist only of the following:
(a) Mains, valves, service lines, regulator stations, vaults, and other pipeline system
components installed to comply with state or federal safety requirements as replacements
for existing facilities that have worn out or are in deteriorated condition;
(b) Main relining projects, service line insertion projects, joint encapsulation
projects, and other similar projects extending the useful life, or enhancing the integrity of
pipeline system components undertaken to comply with state or federal safety
requirements; and
(c) Facilities relocations required due to construction or improvement of a highway,
road, street, public way, or other public work by or on behalf of the United States, this
state, a political subdivision of this state, or another entity having the power of eminent
domain provided that the costs related to such projects have not been reimbursed to the
gas corporation;
(6) “ISRS”, infrastructure system replacement surcharge;
(7) “ISRS costs”, depreciation expense and property taxes that will be due within
twelve months of the ISRS filing;
(8) “ISRS revenues”, revenues produced through an ISRS exclusive of revenues
from all other rates and charges.
393.1012. 1. Notwithstanding any provisions of chapter 386, RSMo, and this chapter
to the contrary, beginning August 28, 2003, a gas corporation providing gas service may
file a petition and proposed rate schedules with the commission to establish or change ISRS
rate schedules that will allow for the adjustment of the gas corporation's rates and charges
to provide for the recovery of costs for eligible infrastructure system replacements. The
commission may not approve an ISRS to the extent it would produce total annualized ISRS
revenues below the lesser of one million dollars or one-half of one percent of the gas
corporation's base revenue level approved by the commission in the gas corporation's most
recent general rate proceeding. The commission may not approve an ISRS to the extent it
would produce total annualized ISRS revenues exceeding ten percent of the gas
corporation's base revenue level approved by the commission in the gas corporation's most
recent general rate proceeding. An ISRS and any future changes thereto shall be calculated
and implemented in accordance with the provisions of sections 393.1009 to 393.1015. ISRS
revenues shall be subject to a refund based upon a finding and order of the commission to
the extent provided in subsections 5 and 8 of section 393.1009.
2. The commission shall not approve an ISRS for any gas corporation that has not
had a general rate proceeding decided or dismissed by issuance of a commission order
within the past three years, unless the gas corporation has filed for or is the subject of a
new general rate proceeding.
3. In no event shall a gas corporation collect an ISRS for a period exceeding three
years unless the gas corporation has filed for or is the subject of a new general rate
proceeding; provided that the ISRS may be collected until the effective date of new rate
schedules established as a result of the new general rate proceeding, or until the subject
general rate proceeding is otherwise decided or dismissed by issuance of a commission
order without new rates being established.
393.1015. 1. (1) At the time that a gas corporation files a petition with the
commission seeking the establish or change an ISRS, it shall submit proposed ISRS rate
schedules and its supporting documentation regarding the calculation of the proposed
ISRS with the petition, and shall serve the office of the public counsel with a copy of its
petition, its proposed rate schedules, and its supporting documentation.
(2) Upon the filing of a petition, and any associated rate schedules, seeking to
establish or change an ISRS, the commission shall publish notice of the filing.
2. (1) When a petition, along with any associated proposed rate schedules, is filed
pursuant to the provisions of sections 393.1009 to 393.1015, the commission shall conduct
an examination of the proposed ISRS.
(2) The staff of the commission may examine information of the gas corporation to
confirm that the underlying costs are in accordance with the provisions of sections
393.1009 to 393.1015, and to confirm proper calculation of the proposed charge, and may
submit a report regarding its examination to the commission not later than sixty days after
the petition is filed. No other revenue requirement or ratemaking issues may be examined
in consideration of the petition or associated proposed rate schedules filed pursuant to the
provisions of sections 393.1009 to 393.1015.
(3) The commission may hold a hearing on the petition and any associated rate
schedules and shall issue an order to become effective not later than one hundred twenty
days after the petition is filed.
(4) If the commission finds that a petition complies with the requirements of sections
393.1009 to 393.1015, the commission shall enter an order authorizing the corporation to
impose an ISRS that is sufficient to recover appropriate pretax revenue, as determined by
the commission pursuant to the provisions of sections 393.1009 to 393.1015.
3. A gas corporation may effectuate a change in its rate pursuant to the provisions
of this section no more often than two times every twelve months.
4. In determining the appropriate pretax revenue, the commission shall consider
only the following factors:
(1) The current state, federal, and local income tax or excise rates;
(2) The gas corporation's actual regulatory capital structure as determined during
the most recent general rate proceeding of the gas corporation;
(3) The actual cost rates for the gas corporation's debt and preferred stock as
determined during the most recent general rate proceeding of the gas corporation;
(4) The gas corporation's cost of common equity as determined during the most
recent general rate proceeding of the gas corporation;
(5) The current property tax rate or rates applicable to the eligible infrastructure
system replacements;
(6) The current depreciation rates applicable to the eligible infrastructure system
replacements; and
(7) In the event information pursuant to subdivisions (2), (3), and (4) of this
subsection is unavailable and the commission is not provided with such information on an
agreed upon basis, the commission shall refer to the testimony submitted during the most
recent general rate proceeding of the gas corporation and use, in lieu of any such
unavailable information, the recommended capital structure, recommended cost rates for
debt and preferred stock, and recommended cost of common equity that would produce
the average weighted cost of capital based upon the various recommendations contained
in such testimony.
5. (1) The monthly ISRS charge may be calculated based on a reasonable estimate
of billing units in the period in which the charge will be in effect, which shall be
conclusively established by dividing the appropriate pretax revenues by the customer
numbers reported by the gas corporation in the annual report it most recently filed with
the commission pursuant to subdivision (6) of section 393.140, and then further dividing
this quotient by twelve. Provided, however, that the monthly ISRS may vary according to
customer class and may be calculated based on customer numbers as determined during
the most recent general rate proceeding of the gas corporation so long as the monthly ISRS
for each customer class maintains a proportional relationship equivalent to the
proportional relationship of the monthly customer charge for each customer class.
(2) At the end of each twelve month calendar period the ISRS is in effect, the gas
corporation shall reconcile the differences between the revenues resulting from an ISRS
and the appropriate pretax revenues as found by the commission for that period and shall
submit the reconciliation and a proposed ISRS adjustment to the commission for approval
to recover or refund the difference, as appropriate, through adjustments of an ISRS
charge.
6. (1) A gas corporation that has implemented an ISRS pursuant to the provisions
of sections 393.1009 to 393.1015 shall file revised rate schedules to reset the ISRS to zero
when new base rates and charges become effective for the gas corporation following a
commission order establishing customer rates in a general rate proceeding that
incorporates in the utility's base rates subject to subsections 8 and 9 of this section eligible
costs previously reflected in an ISRS.
(2) Upon the inclusion in a gas corporation's base rates subject to subsections 8 and
9 of this section of eligible costs previously reflected in an ISRS, the gas corporation shall
immediately thereafter reconcile any previously unreconciled ISRS revenues as necessary
to ensure that revenues resulting from the ISRS match as closely as possible the
appropriate pretax revenues as found by the commission for that period.
7. A gas corporation's filing of a petition or change an ISRS pursuant to the
provisions of sections 393.1009 to 393.1015 shall not be considered a request for a general
increase in the gas corporation's base rates and charges.
8. Commission approval of a petition, and any associated rate schedules, to establish
or change an ISRS pursuant to the provisions of sections 393.1009 to 393.1015 shall in no
way be binding upon the commission in determining the ratemaking treatment to be
applied to eligible infrastructure system replacements during a subsequent general rate
proceeding when the commission may undertake to review the prudence of such costs. In
the event the commission disallows, during a subsequent general rate proceeding, recovery
of costs associated with eligible infrastructure system replacements previously included in
an ISRS, the gas corporation shall offset its ISRS in the future as necessary to recognize
and account for any such overcollections.
9. Nothing in this section shall be construed as limiting the authority of the
commission to review and consider infrastructure system replacement costs along with
other costs during any general rate proceeding of any gas corporation.
10. Nothing contained in sections 393.1009 to 393.1015 shall be construed to impair
in any way the authority of the commission to review the reasonableness of the rates or
charges of a gas corporation, including review of the prudence of eligible infrastructure
system replacements made by a gas corporation, pursuant to the provisions of section
386.390, RSMo.
11. The commission shall have authority to promulgate rules for the implementation
of sections 393.1009 to 393.1015, but only to the extent such rules are consistent with, and
do not delay the implementation of, the provisions of sections 393.1009 to 393.1015. Any
rule or portion of a rule, as that term is defined in section 536.010, RSMo, 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, RSMo, and, if applicable, section
536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the
powers vested with the general assembly pursuant to chapter 536, RSMo, 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, 2003, shall be invalid and void.
Section 1. A steam heating company having fewer than one hundred customers in
this state may file under a small company rate procedure promulgated by the commission
which shall be consistent with 4 CSR 240-3.240 by giving notice to the secretary of the
commission, the public counsel, each customer, and each gas corporation or electric
corporation providing utility service in the area. Any customer, gas corporation, or electric
corporation responding within thirty days of the date of the notice shall be entitled to
copies of all filings subsequently made in the case and may participate in any conferences
or hearings therein.
Section B. Because immediate action is necessary in order to ensure the continued
operation of certain aluminum smelting facilities in this state, the enactment of section 91.026
and the repeal and reenactment of section 91.030 of section A of this act is deemed necessary for
the immediate preservation of the public health, welfare, peace and safety, and is hereby declared
to be an emergency act within the meaning of the constitution, and section 91.026 and the repeal
and reenactment of section 91.030 section A of this act shall be in full force and effect upon its
passage and approval.