Missouri Senate

House Committee Substitute

SECTION 8.305 - ENERGY EFFICIENT STATE APPLIANCES

The act requires any appliance purchased by the state until August 28, 2011 to be an Energy Star rated appliance, unless the appliance is exempted by the Commissioner of the Office of Administration because the cost of compliance outweighs the energy savings.

This provision is similar to a provision in SCS/SB 430 (2009).

SECTION 393.275 - NATURAL GAS UTILITY BAD DEBT

Under current law, rate adjustments in the purchase price of natural gas that are approved by the Public Service Commission (PSC) shall be exempt from certain provisions relating to business license taxation. The act adds a qualifying provision that any such purchased gas adjustment rates shall include the gas cost portion of net write-offs (i.e., bad debt) incurred by the gas company in providing service to customers. Any such net write-offs may only be recovered once through purchased gas adjustment rates, the act requires an annual true-up of the net write-offs, and the PSC shall annually review gas companies' debt collection efforts.

This provision is almost identical to the provision in SS/SCS/SB 299 (2009).

SECTIONS 393.1016 TO 393.1018 - ELECTRIC UTILITY INFRASTRUCTURE SYSTEM REPLACEMENT SURCHARGE (ISRS)

Under current law, natural gas companies can request approval from the PSC to charge customers an infrastructure system replacement surcharge (ISRS), which allows a company to recover costs associated with replacing or upgrading utility service infrastructure. This act allows electric companies to request an ISRS in the same manner except that natural gas companies may not use an ISRS longer than 3 years without a new general rate hearing and this act increases the allowable timeframe to 5 years for electric companies.

SECTION 393.1124 - ENERGY EFFICIENCY PROGRAMS OFFERED BY ELECTRIC COMPANIES

This act creates the Missouri Energy Efficiency Investment Act.

The PSC must allow electric companies to implement and recover costs related to PSC-approved energy efficiency programs. Cost recovery shall only occur when the program has been approved by the PSC, the program results in energy savings, and the program is beneficial to all customers in the class for which the program is proposed. In determining recovery of costs, the PSC shall use a cost-effectiveness test as described. The act allows the electric companies to implement certain programs that are paid for through alternate measures even if the programs do not meet the cost-effectiveness test.

The PSC may develop cost recovery methods to encourage further investments in energy efficiency programs, which may include capitalization of investments, rate design modifications, accelerated depreciation, and allowing the company to retain a portion of the net benefits for its shareholders. The PSC shall fairly apportion the costs and benefits of energy efficiency programs to each customer class except that it may reduce or exempt costs to low-income classes.

Customers may elect not to participate in an electric company's energy efficiency program and not be charged for the associated costs provided the customer meets certain criteria. The PSC must promulgate rules that require customers electing not to participate to demonstrate the existence and financing of their own energy efficiency measures. Customers who elect not to participate will not be eligible to participate in the programs in the future, except as provided by rule by the PSC. Customers who participate in programs starting after August 1, 2009 must participate in the funding recovery for a certain period of time as established by rule by the PSC.

Electric companies must annually report on their energy efficiency activities under the act, with requirements as listed.

Electric companies must list out separately on its customers' bills the cost associated with its energy efficiency programs.

The act prohibits any customer from participating in a company's energy efficiency program that offers a monetary reward for participating if the customer has received a tax credit through the low-income housing or historic preservation tax credit programs. The PSC shall develop rules to prescribe documentation to be provided to the electric company by the customer to prove that he or she did not receive either such tax credit. It shall be a Class A misdemeanor for providing false documentation.

The PSC must develop rules that provide for public disclosure of all the recipients of monetary rewards through energy efficiency programs offered by electric companies under the act.

This section is similar to HB 882 (2009).

SECTION 660.121 TO 660.122 - UTILICARE

Members of households that receive financial assistance through Utilicare or through the federal low-income energy assistance program are eligible to receive an assessment of additional needs and shall be encouraged to attend certain educational workshops on energy conservation and financial management.

The act removes the current requirement that households have had their service disconnected before being eligible for energy financial assistance. Any attempt to pay, or actual payment of, an electric or gas utility bill shall not adversely affect the assistance that an otherwise eligible household may receive through Utilicare or federal energy assistance program.

Electric or gas companies shall allow low-income customers who develop an arrearage during the Cold Weather Rule to pay one-third of the arrearage in each of the 3 months following the Cold Weather Rule period in order to retain service.

These sections are similar to SS/SCS/SB 299 (2009).

ERIKA JAQUES