Missouri Senate

Introduced

The act removes the 2% requirement for the years 2011 to 2013, increases the minimum requirement from 5% to 7% for years 2014 to 2017, and increases the minimum requirement from 10% to 12% for years 2018 to 2020. The act removes the current requirement that at least 2% of the RES must be met with solar energy.

Renewable energy credits (RECs) for energy produced anywhere in the continental U.S. may be used to meet the RES through calendar year 2016, but after that, only RECs associated with energy generated in Missouri or any of its bordering states may be used.

The act provides an exemption to the RES if the utility's cost of compliance exceeds the total amount recovered from ratepayers for the RES. The costs to the utility for renewable energy resources that it would have acquired or contracted to use regardless of the RES are not to be included in the cost calculation of compliance with the RES.

The act allows the utility to charge its customers a surcharge to recover the costs of compliance with the RES. The total revenue from the surcharge should not generate more than an additional 1% of the utility's base rate portion of its revenue requirement as determined in the utility's most recent general rate case prior to the calendar year of the surcharge. The surcharge may be applied beginning in calendar year 2013 and each year thereafter. Any overrecovery or underrecovery of actual costs from the surcharge must either be returned to, or collected from, ratepayers during the following calendar year.

The act describes how a utility should calculate its gross and net costs of compliance with the RES. Net cost is determined by subtracting from the gross cost the total value of the energy produced from the renewable energy resources, where the total value of the energy is the amount of energy multiplied by the time-differentiated kilowatt-hour price as set in the utility's rate tariffs.

Under current law, the monetary penalty for non-compliance with the RES is at least twice the average market value of RECs. The act modifies this amount to at least twice the per kilowatt-hour price for the utility.

The act modifies the solar rebate provisions. Solar rebates must be available to customers who install and operate solar electric systems on their property after 2012, instead of 2009. The rebate must be $2 per watt in the year 2013, with the amount of the rebate reduced by 25 cents each year thereafter. No solar rebates are required to be offered after the year 2020. Customers who receive solar rebates must transfer all rights, title, and interest in any RECs associated with the solar energy to the utility for ten years.

Under current law, any energy facilities certified as renewable by the Department of Natural Resources must not cause certain undue adverse environmental impacts. The act removes this provision and instead specifies that any renewable energy facility that meets all laws and regulations is deemed to meet all requirements for certification.

The act requires electric companies to be able to recover RES costs from their ratepayers through use of the RES surcharge, regardless of a previous decision made by the Public Service Commission as specified.

The Department of Natural Resources must charge and collect from electric companies an assessment to fund the Department's costs to develop biomass energy projects. Revenue from the assessment will be deposited in the Agricultural Energy Fund, which is created in the act.

ERIKA JAQUES