To amend chapter 393, RSMo, by adding thereto one new section relating to retail electric energy competition.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

     Section A. Chapter 393, RSMo, is amended by adding thereto one new section, to be known as section 393.800, to read as follows:

     393.800. Other provisions of law to the contrary notwithstanding, the Missouri public service commission may permit the development of competition in the retail distribution of electrical service by allowing the purchase of electric energy from suppliers other than the owner of the facilities over which the electric energy is distributed. The commission may initiate and approve pilot projects not to exceed two years, including statewide pilot projects, to identify the risks and benefits of competition in the supply of electric energy. These pilot projects shall not be exclusive and shall allow all electrical power suppliers including municipal electric systems and rural electric cooperatives to voluntarily participate in any pilot projects initiated by any electrical power supplier serving retail customers in Missouri. After a period of experimentation not to exceed two years, the commission may implement competition for the supply of retail electric energy, allowing for a reasonable transition period of not less than three years. In approving any tariff for the supply of retail electric energy by corporations or persons other than the owner of the facilities over which the energy is distributed, the commission shall ensure that:

     (1) All economic benefits of retail competition are balanced with respect to the interests of all classes of consumers;

     (2) The quality of the environment is safeguarded;

     (3) The safety and reliability of the electric generation, transmission and distribution system is not impaired;

     (4) Verifiable stranded costs are recovered;

     (5) The same standards and financial requirements are applied to all energy providers; and

     (6) The service areas and service restrictions provided under current Missouri statutes are maintained.

The commission shall ensure universal access to reliable electric energy service throughout the state at reasonable rates and shall ensure that retail competition is implemented with due regard for those costs reflected in the rate base of electrical corporations, as approved under sections 393.110 to 393.285.