RATEMAKING FOR WATER UTILITIES (Sections 393.1000-393.1003) The definitions of eligible infrastructure system replacements and appropriate pretax revenues are expanded to apply to sewer corporations. Additionally, eligible infrastructure system replacements may now apply to water or sewer corporation energy efficiency projects so long as the projects are in service, do not increase revenues, and were not included in the corporation's most recent general rate case. Applications to establish or change an infrastructure system replacement surcharge (ISRS) with the Public Service Commission, should on an annualized basis, produce ISRS revenues of at least $1 million for a water or sewer corporation or $10,000 for a small water or sewer corporation, but not more than 10% of the water or sewer corporation's base revenue. Depreciation expenses on eligible infrastructure system capital investments are now included as an ISRS cost pursuant to this act. This act also includes algae grown for energy production as a renewable energy resource. The provisions of these sections are similar to SB 297 (2013).

The provisions of these sections are similar to the perfected SCS/SB 297 (2013) and HCS/HB 198 (2013).

RENEWABLE ENERGY (Section 393.1032) - This act allows all hydroelectric generation facilities to be classified as a certified renewable energy resource beginning January 1, 2018. Beginning January 1, 2021, all electric generation from hydroelectric sources will be classified as a certified renewable energy resource. The certifications set forth in this act will be automatic on the effective dates and will not require additional certifications from the Missouri Department of Natural Resources, Division of Energy. Prior to August 28, 2013, existing hydroelectric generation facilities certified by the Department of Natural Resources, Division of Energy, will be considered renewable energy resources.

KAYLA CRIDER