HB 1804 Modifies provisions relating to state energy policies

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Current Bill Summary

- Prepared by Senate Research -


SCS/HCS/HB 1804 - This act modifies provisions relating to state energy policies.

GAS CORPORATIONS FILING ISRS PETITIONS (Section 393.1012) - Currently, the Public Service Commission may not approve a gas infrastructure system replacement surcharge (ISRS) to the extent that it would produce total annualized ISRS revenues exceeding 10% of the gas corporation's base revenue level. Under this act, the Public Service Commission may not approve a gas ISRS to the extent it would produce such revenues in any consecutive 3-year period during which an ISRS is in effect, provided that ISRS charges for residential customers shall not be increased by more than $1.50 per month annually, adjusted for any net increase or decrease in gas pipeline construction costs. This act also requires that certain gas pipeline system components shall be in worn out or deteriorated condition.

Currently, the Public Service Commission shall not approve a gas ISRS without having issued a general rate proceeding decision within the last 3 years, and a gas corporation cannot collect an ISRS for more than 3 years unless they have filed or are the subject of a new general rate proceeding. Under this act, these provisions are changed from 3 years to 5 years.

Nothing in this act shall be construed to limit the rights of certain groups to file a complaint alleging that the rates or charges of a gas corporation are unreasonable or unlawful.

These provisions are substantially similar to SB 849 (2016), and is similar to HB 1471 (2016), SCS/SB 403 (2015), HCS/HB 956 (2015), SCS/SB 240 (2013), and HCS/HB 473 (2013).

COMPETITIVE BIDDING FOR ISRS-ELIGIBLE GAS UTILITY PLANT PROJECTS (Section 393.1012) - This act requires gas corporations utilizing ISRS to develop and file with the Public Service Commission a pre-qualification process for contractors seeking to participate in competitive bidding to install ISRS-eligible gas utility plant projects. The gas corporation may specify the criteria that the contractor shall meet in order to qualify to participate in the competitive bidding process, but such criteria shall not be based on whether or not the contractor contracts with a union. Under this act, the gas corporation shall file a verified statement with the Public Service Commission stating that it has in place a pre-qualification process by January 1, 2017. Any ISRS petition thereafter shall be accompanied with a verified statement that the gas corporation is using a competitive bidding process for installing no less than 10% of ISRS-eligible gas utility plant projects. Under this act, the lowest and best bid in the competitive bidding process shall receive the contract to perform the project.

Under this act, the Public Service Commission shall prepare a report for the General Assembly annually, with the first report being submitted by December 31, 2018, on the competitive bidding process established under this act.

This act expires all provisions relating to gas ISRS on December 31, 2036.

All provisions relating to gas ISRS are identical to provisions contained in SCS/SB 848 (2016).

COMPREHENSIVE STATE ENERGY PLAN (Section 620.3150) - This act requires that the comprehensive state energy plan implemented by the Division of Energy shall be reviewed by the Division by January 1, 2018, and biennially thereafter, and updated if necessary. This act requires the Division of Energy to consult with diverse stakeholder groups to facilitate the review, or to contract with a certain nonprofit organization to facilitate the review. Further, this act requires the Division of Energy to issue a report, along with the review, suggesting policy changes as set forth in this act.

This provision is similar to a provision contained in the perfected HCS/HB 2689 (2016).

KAYLA HAHN

SA 1 - THIS AMENDMENT PROVIDES THAT ONCE A COUNTY HAS COME UNDER OPERATION OF LAW ALLOWING WATER CORPORATIONS IN ST. LOUIS COUNTY TO ESTABLISH AN ISRS, A SUBSEQUENT CHANGE IN POPULATION SHALL NOT REMOVE SUCH COUNTY FROM THE OPERATION OF SUCH LAW.


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