SCS/SB 387 - This act provides that the Missouri Public Service Commission may allow electrical corporations which are not also gas corporations and which serve fewer than 175,000 retail customers in Missouri and which own at least 60% of a plant with a capacity of at least 300 megawatts which was under construction and at least 30% complete on January 1, 2001, (currently including Empire Electric) to recover reasonably and prudently incurred costs of the purchase of natural gas used in the production of electricity in such plants and costs of electricity purchased as an alternative to using such plants and impacted by the cost of natural gas. The recovery of purchased electricity costs shall be fully recoverable for one year after the section becomes effective and limited to 50% thereafter and the electrical corporation must clearly document the impact of the cost of natural gas on the purchase price of the electric energy. The recovery shall be according to rate schedules approved by the Commission.

The rate schedules will be initially established pursuant to a general order of ratemaking, but shall not be established if the Commission determines that it would not be in the long-term best interests of ratepayers to establish such a mechanism.

The electrical corporation shall file updated schedules every six months, even if no change is sought, unless the schedules have been replaced by a general rate order within the last six months. Updated schedules shall be reviewed separately from the general ratemaking process and decided upon within 45 days, unless the Commission determines an extra period of up to 30 days is required. If, in reviewing the update filing, the Commission finds a substantial possibility that the utility is overearning, the Commission shall initiate a general rate order proceeding. Such rate proceeding shall be completed in 11 months and any rate decrease shall be retroactive with interest calculated from the date that interim cost recovery was allowed under this act.

The Commission shall establish a process to "true-up" the recovery to refund any over-collection based upon the adjustments authorized pursuant to this act, with interest. A utility shall not be allowed to make up for under-collection in previous adjustment periods. Once determined, refunds shall be processed in the next billing cycle. Refund cases shall be considered on an expedited basis. The Public Counsel and any customer may intervene.

A utility which files under this act within 90 days of the effective day may request, at the time of filing, that emergency rate schedules be established under the expedited 45 day process without waiting for the conclusion of the general ratemaking order. These requests shall follow the same process used for update filings and shall only be allowed if the natural gas price has changed by more than 25% since the corporation's latest rate case.

The section allowing cost recovery for electrical corporations terminates on Dec. 31, 2004.

The act allows any non-profit electrical corporation to recover and pass through its costs associated with the purchase and transportation of electrical energy under an automatic adjustment provision.

The act contains an emergency clause.

This act is similar to HB 700 from 1999.
OTTO FAJEN