SS#2/SB 4 - The act modifies and creates new provisions relating to utilities.SOLAR ENERGY GENERATION SYSTEMS AS TANGIBLE PERSONAL PROPERTY (Sections 137.010, 137.080, and 137.115)
This act provides that the definition of "tangible personal property" shall, for the purposes of property taxation, include solar panels, racking systems, inverters, and related solar equipment, components, materials, and supplies installed in connection with solar photovoltaic energy systems that were constructed and producing solar energy prior to August 9, 2022. (Section 137.010)
This act also creates a new subclass of tangible personal property that includes solar panels, racking systems, inverters, and related solar equipment, components, materials, and supplies installed in connection with solar photovoltaic energy systems that were constructed and producing solar energy prior to August 9, 2022, and provides that such subclass shall be assessed at five percent of its true value in money. (Sections 137.080 and 137.115)
These provisions are similar to SB 414 (2025), SB 1219 (2024) and to provisions in HCS/HB 1836 (2024).
COMPENSATION OF TRUSTEES OF COMMON SEWER DISTRICTS (Sections 204.300 and 204.610)
Trustees appointed by the governing body of certain counties may be paid reasonable compensation by the common sewer district for their services outside their duties as trustees. Monetary compensation of such trustees is described in the act. The act repeals certain provisions relating to the compensation schedule and expenses incurred by the trustees.
The trustees of a district with an eleven-member board and located in two counties shall receive no compensation for their services but may be reimbursed for expenses. Reimbursement of trustees of a ten-member board are described in the act.
Each trustee appointed or elected in the circuit court decree or amended decree of incorporation for a reorganized common sewer district may receive certain monetary compensation for their services as trustees as described in the act. The act repeals the provisions stating that such trustees shall receive no compensation for their services but may be compensated for reasonable expenses normally incurred in the performance of their duties.
These provisions are similar to provisions in SB 5 (2025), SB 896 (2024), HB 2476 (2024), HCS/SB 155 (2023), and similar to provisions in SCS/HCS/HB 1746 (2024).
ASSESSMENTS TO TELECOMMUNICATION CORPORATIONS (Section 386.370)
Under the act, the total amount assessed by the Commission to public utilities shall not exceed .45%, instead of .315% as currently provided, of the total gross intrastate operating revenues of all public utilities, except telecommunications corporations. The total amount to be assessed to all telecommunications corporations, including interconnected voice over internet protocol service providers, shall not exceed .25% of the total gross intrastate operating revenue of all telecommunications corporations and interconnected voice over internet protocol service providers.
NATURAL GAS SAFETY STANDARDS (Section 386.572)
The act repeals certain provisions relating to maximum penalties for violations of federally mandated natural gas safety standards and provides that the maximum penalties shall not exceed an amount as determined by the Secretary of Transportation of the United States.
This provision has an emergency clause.
This provision is substantially similar to SB 1470 (2024), a provision in SCS/HCS/HB 1746 (2024), HB 2660 (2024), SB 450 (2023), SB 953 (2022), SB 172 (2021) and HB 1054 (2021), SB 827 (2020), SB 169 (2019), HB 589 (2019), SB 815 (2018).
ENFORCEMENT OF COMMISSION POWERS (Section 386.600)
Under the act, an action against a public utility may be prosecuted for certain violations involving HVAC services and may be brought by the Attorney General. No filing or docket fee shall be required of the Attorney General.
This provision is similar to a provision in SB 491 (2025).
DUTIES OF THE OFFICE OF THE PUBLIC COUNSEL (Section 386.720)
Under the act, prior to the beginning of each fiscal year on or after July 1, 2026, the Public Counsel shall make an estimate of the expenses to be incurred by his or her office during such fiscal year reasonably attributable to the performance of his or her powers, duties, and functions, and shall separately estimate the amount of such expenses attributable to such duties for each group of public utilities as described in the act. Telephone and telegraph corporations shall be exempt from this provision.
The Public Counsel shall allocate to each group of public utilities the estimated expenses directly attributable to the regulation of each group of the public utilities as described in the act.
The Public Counsel shall render a statement of the assessment of each public utility on or before July 1st of each year and the amount so assessed to each public utility shall be paid by the utility to the Director of Revenue as described in the act. The total amount to be assessed shall not exceed .057%.
The State Treasurer shall credit such payment to a fund, known as "The Office of the Public Counsel Fund", or its successor fund. The Fund shall be used to pay expenditures incurred by the Public Counsel for the regulation of public utilities under the jurisdiction of the Public Service Commission. Any amount remaining in the Fund at the end of a fiscal year shall not revert to the general revenue fund, but shall be applicable by appropriation of the General Assembly to the payment of the expenditures of the Public Counsel as described in the act.
THE FAIR COMPETITION LAW (Section 386.752, 386.754, 386.756, 386.760)
The act creates the "Fair Competition Law."
The act modifies certain provisions relating to HVAC services.
Any utility that engages a utility contractor that provides HVAC services shall develop a qualification process and make the process open to all contractors seeking to provide HVAC services. Such contractors shall be able to register on the utility's vendor registration site and be evaluated for bid opportunities.
After receiving information that provisions of the Fair Competition Law have been violated by any person or entity subject to the Commission's jurisdiction, the Commission's staff shall investigate and report any findings to the Commission. If the Commission finds that a violation occurred, the Commission may open a case to abate the violation and seek penalties. Any person informing the Commission of any such violation may intervene into the proceeding before the Commission. The person and any other interested person shall be provided a copy of the final disposition of the complaint, but not the work-product or attorney client privileged documents of the Commission's staff or General Counsel or the Attorney General.
The Commission shall not adopt any rule, tariff, order, or any other action that purports to allow violations of the Fair Competition Law.
ADVANCED METERS (Section 386.820)
Under the act, the Public Service Commission shall promulgate commercially reasonable rules governing the opt-out process using an advanced or hub meter for customers no later than June 30, 2026. As of July 1, 2026, a residential utility customer may communicate with the utility that the customer would like to opt-out of using an advanced meter or hub meter.
Within a commercially reasonable time after receiving a customer's request to remove an advanced meter from the customer's residence or business, a utility shall remove the advanced meter and replace it with a traditional meter. A utility may charge a one-time fee, not to exceed $125, to remove the advanced meter and to provide a traditional meter. A utility may charge a monthly fee, not to exceed $15, for the use of a traditional meter.
If a residential customer utilizes a traditional meter and desires to read his or her own meter, the customer shall report accurate electricity usage to the utility once per a billing cycle. A utility shall provide the customer with the detailed process to report meter readings as described in the act. At least once every 12 months, the utility shall obtain an actual meter reading of the customer's energy usage to verity the accuracy of readings reported. A representative of a utility may manually read the customer's meter once per a billing cycle and correct a reading as necessary. If the customer fails to report usage, inaccurately reports usage, or the utility does not receive the customer's usage report on time, the utility may manually read the customer's meter or charge the customer based on an estimate of prior energy use. The utility may charge the customer interest on any unpaid amount. Such interest rate shall be no greater than 5%. The Commission is authorized to approve charges to be assesses pursuant to an electrical corporation's rate schedule to be assessed on customers that intentionally report inaccurate electricity usage.
A utility shall not be liable for any injuries or other damages sustained by a customer or other individuals due to a customer's reading of the customer's energy usage unless such injuries or damages are caused by the willful misconduct or gross negligence of the utility.
TIME-OF-USE RATES (Section 386.1100)
If the Public Service Commission has ordered adoption of time-of-use rates on a mandatory basis for an electrical corporation's residential customers before the affective date of this provision, then within one year from the effective date of this provision, the Commission shall issue an order to allow mandated time-of-use rate customers to opt-out of participating in time-of-use rates and elect to participate in non-time-of-use rates. The transition to opt-out of time-of-use rates may occur in a general rate case or in a standalone tariff proceeding to allow for the transition to conclude no later than one year from the effective date of this provision.
HOT WEATHER RULE FOR UTILITIES (Section 393.108)
Under the act, it shall be prohibited for utilities to disconnect electric and gas service to residential customers for nonpayment of bills between June 1st to September 30th between 6 a.m. to 9 p.m. if the National Weather Service local forecast predicts for the following seventy-two hours, instead of twenty-four hours as currently provided, that the temperature shall rise between such times above 95 degrees Fahrenheit.
COLD WEATHER RULE FOR UTILITIES (Section 393.109)
Under the act, it shall be prohibited for utilities to disconnect gas and electric service to residential customers for nonpayment of bills between November 1st to March 31st between 6 a.m. and 9 p.m. for the following seventy-two hours if the National Weather Service local forecast predicts that the temperature shall fall during such times below 32 degrees Fahrenheit.
AN ELECTRICAL CORPORATION'S SERVICE TARIFF (Section 393.130)
Under the act, an electrical corporation with more than 250,000 customers shall develop and submit to the Public Service Commission schedules to include its service tariff applicable to customers who are projected to have above an annual peak demand of 100 megawatts or more. The schedules should ensure such customers' rates will reflect a representative share of the costs incurred to serve the customers and prevent other customer classes' rates from reflecting any unjust or unreasonable costs arising from service to such customers.
Each electrical corporation with 250,000 or fewer customers as of January 1, 2025, shall develop and submit to the Commission such schedules applicable to customers who are reasonably projected to have above an annual peak demand of 50 megawatts or more. The Commission may order an electrical corporation to submit similar tariffs to reasonably ensure that rates of customers who are reasonably projected to have annual peak demands below the above-referenced levels will reflect the customer's representative share of certain costs.
AMOUNTS INCLUDED IN CONSTRUCTION WORK IN PROGRESS (Section 393.135)
The act provides that, subject to certain limitations, an electrical corporation may be permitted to include construction work in progress for any new natural gas-generating unit in rate base. The inclusion of construction work in progress shall be in lieu of any applicable allowance for funds used during construction that would have accrued after the effective date of new base rates reflecting inclusion of the construction work in progress in rate base. The Public Service Commission shall determine the amount of construction work in progress that may be included in rate base. The amount shall be limited by the estimated cost of the project and project expenditures made within the estimated construction period for such project.
Base rate recoveries arising from inclusion of construction work in progress in rate base are subject to refund, as described in the act.
These provisions shall expire on December 31, 2035, unless the Commission determines, after a hearing as described in the act, that good cause exists to extend these provisions through December 31, 2045. The secretary of the Commission shall notify the Revisor of Statutes when the conditions for the extension have been met.
This provision is identical to a provision in SCS/SB 186 (2025), and similar to a provision in SB 618 (2028), a provision in HB 92 (2025), a provision in HB 853 (2025), a provision in HB 963 (2025), a provision in SB 48 (2025), a provision in SB 214 (2025).
REDUCTION TO THE FEDERAL INCOME TAX RATES OF ELECTRICAL CORPORATIONS (Section 393.138)
If a reduction is made to the federal income tax rates of electrical corporations between January 20, 2025, and December 31, 2029, the Commission shall have one-time authority to adjust each electrical corporation's rates prospectively as described in the act. Beginning with the effective date of the federal corporate income tax reduction through the date the electrical corporation's rates are adjusted on a one-time basis, the Commission shall require electrical corporations to defer to a regulatory asset the financial impact of such federal act. The amounts deferred shall be included in the revenue requirement used to set the electrical corporation's rates.
The Commission may alternatively allow a deferral of such federal act's financial impacts to a regulatory asset starting with the effective date of the federal corporate income tax reduction through the effective date of new rates. The deferred amounts shall be included in the revenue requirement used to set the electrical corporation's rates in its subsequent general rate proceeding through an amortization over a period determined by the Commission.
TEST YEAR FOR RATE PROCEEDINGS FOR CERTAIN UTILITIES (Section 393.150)
Under the act, beginning July 1, 2026, the test year for rate proceedings, if requested by certain utilities, shall be a future year consisting of the first 12 full calendar months after the operation of law date for schedules stating new base rates filed by the utilities, unless the Public Service Commission makes a determination that using a future test year is detrimental to the public interest. The projected total rate base at the end of the future test year shall be used to establish new base rates. New base rates shall not go into effect before the 1st day of the future test year.
Certain public utilities that elect to utilize a future test year within 45 days of the end of the future test year shall update their base rates as described in the act. The total ending rate base and expense items in the update shall not be greater than the total ending rate base and expense items approved by the Commission in its report and order establishing base rates. The Commission and parties to the case shall have 60 days to review the accuracy of the updated information provided by the utility. The Commission shall order the utility to file new tariff sheets reflecting the update, as described in the act.
Certain utilities that request a test year shall not recover the costs of any plant investments made during the test year period under certain mechanisms described in current law.
For utilities that elected to use a future test year, a reconciliation of the rate base at the end of the future test year shall be provided to the Commission within 45 days of the end of the future test year. If the actual rate base is less than the rate base used to set base rates in the prior general rate proceeding, the portion of the annual revenue requirement reflecting the rate base difference shall be returned to customers. The revenue requirement calculations are described in the act. The difference in revenue requirement shall be placed into a regulatory liability to be returned to customers in the next general rate proceeding with such regulatory liability to accrue carrying costs at the utility's weighted average cost of capital.
The Commission may consider any change in business risk to the utility resulting from implementation of the adjustment mechanism in setting the utility's allowed return in any rate proceeding, in addition to any other changes in business risk experienced by the utility.
For a utility that elected to use a future test year, a reconciliation of payroll expense, certain employee benefits, and rate case expense at the end of the future test year shall be provided to the Commission within 45 days of the end of the future test year. If the actual amounts are less than the amounts used to calculate the revenue requirement in the prior general rate proceeding, the difference shall be returned to customers. The difference in revenue requirement shall be placed into a regulatory liability to be returned to customers in the next general rate case with such regulatory liability to accrue carrying costs at the utility’s weighted average cost of capital.
The act creates definitions for "base rates" and "revenue requirement".
These provisions are identical to provisions in SB 5 (2025), and similar to SCS/SB 1280 (2024), a provision in SCS/HCS/HB 1746 (2024), and a provision in HB 2167 (2024).
A LARGE WATER PUBLIC UTILITY ACQUIRING A SMALL WATER UTILITY (Sections 393.320 and 393.1506)
Under the act, if a large water public utility chooses certain provisions for the acquisition of a small water utility, the Public Service Commission shall use such procedures to establish the rate making rate base of a small water utility during the acquisition, provided that the Commission independently concludes that a certificate of convenience and necessity should be granted. In making such determination, the Commission may take into account rates that may result from such acquisition.
An appraisal of a small water utility shall be performed by no less than two appraisers, instead of three appraisers as currently provided. One appraiser shall be appointed by the small water utility, one appraiser shall be appointed by the large water public utility, and the third appraiser may be appointed by the Commission. The act repeals the provision that the third appraiser shall be appointed by the two appraisers so appointed. Duties of the appraisers are described in the act.
For any acquisition of a small water utility by a large public water utility with an appraised value of $5,000,000 or less, the Public Service Commission shall issue a decision of such acquisition within six months from the submission of the application for such acquisition by the large public water utility. Prior to the expiration of the six-months period, the Commission staff or the office of the Public Counsel may request, upon a showing of good cause, from the Commission an extension for approval of the application for an additional 30 days.
A large water public utility's choice to comply with the provisions of this section does not ensure that the transaction is in the public interest. The Commission shall independently determine whether the acquisition is in the public interest, regardless of whether the matter has been put to a vote of the small water utility's ratepayers.
This act also modifies the definition of "large water public utility".
These provisions are identical to provisions in SB 5 (2025), SCS/SB 741 (2024), provisions in SCS/SB 740 (2024), SB 896 (2024), similar to provisions in SCS/HCS/HB 1746 (2024), SCS/SB 567 (2023), and similar to provisions in HB 1152 (2023) and HCS/SB 275 (2023).
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 reliable electric generation as accredited power resources based on the regional transmission operator's resource accreditation. 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, as described in the act. Dispatchable power resources shall comprise at least 80% of the average of the summer and winter capacity of the replacement reliable electric generation.
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 within 180 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, an electrical corporation shall be required to follow a procedure as described in the act.
The average of the summer and winter accredited capacity of the replacement reliable electric generation shall be equal to or greater than the average summer and winter accredited capacity of the closing dispatchable existing electric generating power plant, as described in the act.
The Commission may consider information regarding anticipated loss of load submitted by the electrical corporation to the pertinent regional transmission operator for purposes of its long term resource plans. The Commission shall certify that the requirements under the act by the replacement reliable electric generation have been met.
If the information is submitted to the Commission that the electrical corporation has experienced a significant and long-term loss of load, the Commission, prior to a review of potential replacement reliable electric generation, shall determine if the acquisition or construction of full replacement generation is in the public interest. If the Commission determines that full replacement generation is not in the public interest, the provisions of this section shall not apply.
Reliable electric generation may be constructed in Missouri or in a state that neighbors Missouri if it is connected to the electric grid of the regional transmission operator of which the electrical corporation is a member or is located in a neighboring regional transmission operator which operates in the state and shares a seam with the member's regional transmission operator.
On or before the date that the new reliable electric generation is placed in service, the electrical corporation shall provide certification to the Commission, the General Assembly, and the Governor that it has met the requirements of the act.
The existing electric generating power plant capacity shall not be replaced with certain renewable energy replacement resources as defined in current law.
These provisions are similar to provisions in SB 6 (2025), SCS/SB 757 (2024), 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.
This provision is identical a provision in SB 6 (2025), 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).
ELECTRICAL CORPORATION'S PLAN TO OWN SUFFICIENT CAPACITY (Section 393.1080)
The Public Service Commission may require an electrical corporation to provide documentation annually reflecting the corporation's plan to own or have rights to sufficient capacity to meet its capacity obligations for the upcoming planning year and each of the three subsequent planning years. An electrical corporation shall submit such documentation, which shall include its actual capacity position for the upcoming planning year and a reasonable forecast of its capacity position for the three subsequent planning years as described in the act.
The Commission may require any additional audits and reporting as the Commission considers necessary to determine if an electrical corporation's plan provides for electrical corporation ownership or contractual rights to sufficient capacity for the planning year beginning four years after the beginning of the current planning year.
If an electrical corporation fails to have sufficient capacity for the upcoming planning year and it is determined by the Commission to be the result of the electrical corporation's imprudence, the Commission may disallow any associated costs related to the failure in a future proceeding. The Commission may require submission of a plan within six months to resolve any expected capacity deficiency for the subsequent three planning years.
This provision is identical to a provision in SCS/SB 186 (2025), and similar to a provision in SB 618 (2025), HB 92 (2025), SB 853 (2025), and a provision in HB 963 (2025).
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".
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 identical to a provision in SB 6 (2025), similar to SB 1422 (2024), a provision in SCS/HCS/HB 1746 (2024), and HCS/HB 2541 (2024).
DISCOUNTS BY GAS CORPORATIONS (Section 393.1645)
Under the act, subject to certain limitations, a new or an existing gas corporation account meeting the criteria under the act shall qualify for one of the following discounts:
(1) When the customer is a new customer and the new load is reasonably projected to be at least 270,000 CCF annually, the discount shall equal 25% and shall apply for four years; or
(2) When the customer is an existing customer and the new load is reasonably projected to be at least 135,000 CCF annually, the discount shall equal 25% and shall apply for four years.
To obtain one of the discounts, the customer's load shall be incremental, net of any offsetting load reductions due to the termination of other accounts of the customer or an affiliate of the customer within twelve months prior to the commencement of service to the new load. The customer shall receive an economic development incentive from a governmental entity, as described in the act, in conjunction with the incremental load. The customer shall meet the criteria set forth in the gas corporation’s economic development rider tariff sheet, as approved by the Public Service Commission, that are not inconsistent with the act.
Unless otherwise provided by the gas corporation's tariff, the applicable discount shall be a percentage applied to all variable base-rate components of the bill. The discount shall be applied to such incremental load from the date when the meter has been permanently set until the date that such incremental load no longer meets the criteria required to qualify for the discount as determined under the act, or a maximum of four years. The gas corporation may include in its tariff additional or alternative terms and conditions relating to the discount, subject to approval of such terms and conditions by the Commission.
The customer, on forms supplied by the gas corporation, shall apply for the applicable discount as described in the act. If the incremental usage is not separately metered, the gas corporation's determination of the incremental usage shall control. The gas corporation shall verify the customer's annual consumption to determine continued qualification for the discount as described in the act. If in a subsequent general rate proceeding the Commission determines that application of a discounted rate is not adequate to cover the gas corporation's variable cost to serve the accounts in question and provide a positive contribution to fixed costs, then the Commission shall reduce the discount for those accounts as necessary.
In each general rate proceeding concluded after August 28, 2025, the difference in revenues with the discounts and the revenues without such discounts shall not be imputed into the gas corporation's revenue requirement. Instead, such revenue requirement shall be set using the revenues by the discounted rates as described in the act. To qualify for discounted rates, customers shall meet the applicable criteria within 24 months of initially receiving discounts based on metering data for calendar months 13-24 and annually thereafter. If such data indicates that the customer did not meet the applicable criteria for any subsequent 12-month period, the customer shall no longer qualify for a discounted rate. Customer usage existing at the time the customer makes application for a discounted rate shall not constitute incremental usage. The discounted rates apply only for variable base-rate components, with charges or credits arising from any rate adjustment mechanism authorized by law to be applied to customers qualifying for discounted rates in the same manner as such rate adjustments would apply in the absence of these provisions.
The act creates a definition for "variable base-rate components".
These provisions are identical to provisions in SCS/HCS/HB 1746 (2024), substantially similar to SB 896 (2024), HB 2045 (2024), and similar to SB 638 (2023) and HB 1143 (2023).
REVENUE REQUIREMENT IMPACT CAP (Section 393.1656)
Under the act, "revenue requirement impact cap" means the product of one-twelfth of two and one-quarter percent, instead of two and one-half percent as currently provided, multiplied by the number of months that have elapsed from the effective date of new base rates in the electrical corporation's most recently completed general rate proceeding as provided in current law.
SPECIAL RESIDENTIAL CUSTOMER RATES (Section 393.1680)
Under the act, the Public Service Commission may approve a special alternative residential customer rate or discount from a utility company, based on household utility burden, as defined in the act. The rate or discount shall incorporate a Commission authorized discount from the appropriate base residential rate. Any eligibility verification needed to implement the alternative rate shall be done by an independent third party as described in the act.
SECURITIZED UTILITY TARIFF (Section 393.1700)
Under the act, if an electrical corporation has a Commission-approved market-based tariff as of 2022, any customer receiving electrical service under the market-based tariff with a load of at least 80 megawatts is exempt from any securitized utility tariff charges if the charge was approved by the Commission prior to customer energization and from any future securitized utility tariff charges as described in the act. No such exemption shall apply for electrical service that is not received by the customer under a Commission-approved market-based tariff.
This provision is similar to a provision in SCS/SB 740 (2024) and SB 838 (2024).
REVIEW OF FINANCING ORDERS FOR ENERGY TRANSITION COSTS (Section 393.1700)
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 SB 6 (2025), 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).
INTEGRATED RESOURCE PLANNING (Section 393.1900)
Under the act, by August 28, 2027, the Public Service Commission, and every four years as needed thereafter, shall commence an integrated resource planning proceeding for electrical corporations. The Commission's responsibilities pursuant to the integrated resource planing proceeding are described in the act.
No later than August 28, 2027, the Commission shall publish a schedule for electrical corporations to file an integrated resource plan every four years. Each integrated resource plan shall include an alternative resource plan meeting the requirements under the act. All alternative resource plans shall cover a minimum 16-year planning horizon. All such plans shall reflect projections of an electrical corporations's load obligations and how an electrical corporation under such plan would reliably meet its projected load obligations. Other requirements to be included in the plan are described in the act.
After a hearing, the Commission shall issue a report and order no later than 360 days after the electrical corporation files an integrated resource plan, unless the Commission grants itself an extension for good cause for the issuance of the report and order. Up to 150 days after an electrical corporation makes its initial integrated resource plan filing, the electrical corporation may file an update of the cost estimates if the cost estimates have materially changed. The Commission's report and order shall determine whether the electrical corporation has submitted sufficient documentation and selected a preferred resource plan representing a reasonable and prudent means of meeting the electrical corporation's load serving obligations at just and reasonable rates. In making this determination, the Commission shall consider whether the plan appropriately balances specific factors described in the act.
If the Commission determines that the preferred resource plan is a reasonable and prudent means of meeting the electrical corporation's load serving obligations, such determination shall constitute the Commission's permission for the electrical corporation to construct or acquire the specified supply-side resources, identified by the Commission, that were reflected in the implementation plan, as described in the act. When the electrical corporation files an application for a certificate of convenience and necessity to authorize construction or acquisition of such resources, the Commission shall be deemed to have determined that the supply-side resources are necessary or convenient for the public interest. In the certificate of convenience and necessity proceeding, the Commission's inquiry shall be limited, as described in the act.
If the Commission determines that the preferred resource plan is not a reasonable and prudent means of meeting the electrical corporation's load serving obligations, the Commission shall have the authority to specify in its report and order the deficiencies in the preferred resource plan. Procedures to cure the deficiencies as described in the act.
If approved in a proceeding granting permission and approval to construct an electric plant, an electrical corporation may, subject to certain limitations, be permitted to include in its rate base any amounts recorded to construction work in progress for the investments for which permission is granted. The inclusion of construction work in progress shall be in lieu of any applicable allowance for funds used during construction that would have accrued from the effective date of new base rates that reflect inclusion of the construction work in progress in rate base. The Commission shall determine the amount of construction work in progress that may be included in rate base, as described in the act. The amount shall be limited by specifics described in the act.
This provision is substantially similar to a provision in SCS/SB 186 (2025), and similar to a provision in SB 618 (2025), a provision in SB 48 (2025), a provision in SB 214 (2025), a provision in HB 92 (2025), and a provision in HB 853 (2025).
JULIA SHEVELEVA