SB 6 - The act modifies and creates new provisions relating to electric utilities.CLOSURE OF ELECTRIC POWER PLANTS (Section 393.401)
Under the act, prior to the closure of an existing electric generating power plant if the closure occurs on or after January 1, 2026, an electrical corporation, registered and doing business in Missouri, shall first certify to the Public Service Commission that it has secured and placed on the electric grid an equal or greater amount of replacement reliable electric generation as accredited power resources as defined by the regional transmission operator. To determine if an equal or greater amount of reliable electric generation is being placed on the electric grid, the electrical corporation shall compare the relevant regional transmission operator's average of the summer and winter accredited capacity for the generation technology of the closing electric plant to the relevant regional transmission operator's average of the summer and winter accredited capacity of the replacement reliable electric generation. Such average accredited capacity shall equal or exceed average accredited capacity for the existing electric generating plant.
Adequate electric transmission lines shall be in place and the replacement reliable electric generation shall be fully operational concurrently with the closure of the existing electric generating plant, except where some or all of the replacement reliable electric generation utilizes interconnection facilities used by the existing electric generating power plant as described in the act. If replacement reliable electric generation utilizes interconnection facilities utilized by the existing electric power plant, the replacement facilities shall be fully operational without 120 days of the closure of the existing electric plant. If an existing electric power plant is closed as a result of an unexpected or unplanned cause or event, as defined in the act, the electrical corporation shall install replacement reliable electric generation as soon as is practical. During any periods where the replacement reliable electric generation is not fully operational by the time of the closure of an existing power plant, the electrical corporation shall acquire additional available generation capacity through a firm purchase power contract as described in the act.
The average of the summer and winter accredited capacity of the replacement reliable electric generation under the act shall be equal to or greater than the average accredited capacity of the existing electric generation power plant recorded by the regional transmission operator as of the time construction begins on the replacement reliable electric generation. The Public Service Commission shall promulgate rules that the requirements under the act shall be met by the replacement reliable electric generation.
Reliable electric generation may be constructed outside the state if it is connected to the electric grid of the regional transmission operator of which the electrical corporation is a member.
On or before the date that the new reliable electric generation is placed in service, the electrical corporation shall provide certification to the Public Service Commission, the General Assembly, and the Governor that it has met the requirements of the act.
This provision is identical to SCS/SB 757 (2024), and similar to provisions in SCS/HCS/HB 1746 (2024), HCS/HB 1753 (2024), SB 709 (2023) and SB 717 (2023).
RENEWABLE ENERGY STANDARD (Section 393.1030)
Energy meeting the criteria of the renewable energy portfolio requirements under the act that is generated from renewable energy resources and contracted for by an accelerated renewable buyer, as defined in the act, shall be subject to certain requirements described in the act.
The accelerated renewable buyer shall be exempt from any renewable energy standard compliance costs as may be established by the utility and approved by the Public Service Commission as described in the act.
Each electric utility shall certify and verify to the Commission that the accelerated renewable buyer has satisfied the exemption requirements under the act for each year, or an accelerated renewable buyer may choose to certify satisfaction of this exemption by reporting to the Commission individually. Nothing in the act shall be construed as imposing or authorizing the imposition of any reporting, regulatory or financial burden on an accelerated renewable buyer.
These provisions apply to electric utilities with more than 250,000 but less than 1 million retail customers in the state as of the end of the calendar year 2024.
These provision is identical to SCS/SB 740 (2024), HCS/HB 1746 (2024), provisions in SB 838 (2024), similar to SCS/SB 374 (2023), provisions in SB 896 (2024).
DEFERRALS BY ELECTRICAL CORPORATIONS (Section 393.1400)
The act modifies certain provisions relating to deferrals by electrical corporations.
The act removes "new natural gas units" from the definition of "qualifying electric plant" and modifies the definition of "weighted average cost of capital".
Electrical corporations shall defer to a regulatory asset 90%, instead of 85% as provided in current law, of all depreciation expense and return associated with all qualifying electric plant recorded to plant-in-service on the utility's books.
The act excludes the cost of investments in new generating units and energy storage systems from the requirement that at least 25% of the cost of investments reflected in each year's capital investment plan shall be comprised of grid modernization projects.
The act extends the sunset date of certain provisions relating to deferrals by electrical corporations from December 31, 2028 to December 31, 2035. The deadline to file an application seeking permission from the Public Service Commission relating to deferrals shall be extended from December 31, 2026 to December 31, 2033.
Provisions relating to electrical corporations seeking deferrals shall expire on December 31, 2040, instead of on December 31, 2033.
This provision is similar to SB 1422 (2024), a provision in SCS/HCS/HB 1746 (2024), and HCS/HB 2541 (2024).
REVIEW OF FINANCING ORDERS FOR ENERGY TRANSITION COSTS (Section 393.1700)
Under the act, the Public Service Commission may directly contract counsel, financial advisors or other consultants as necessary for the purpose of reviewing financing orders for energy transition costs. This provision shall not be subject to state purchasing provisions. However, the Commission shall establish a policy for the bid process. Such policy shall be publicly available and any information related to contracts under the established policy shall be included in publicly available rate case documents.
This provision is identical to a provision in SCS/SB 740 (2024), HB 1728 (2024), a provision in HCS/HB 1746 (2024), a provision in SB 899 (2024), HCS/HB 1071 (2023) and similar to SB 520 (2023).
JULIA SHEVELEVA