Introduced

COMPENSATION OF TRUSTEES OF COMMON SEWER DISTRICTS

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. This act repeals certain provisions that any such compensation must be approved by resolution of the board of trustees, or by a resolution, order, or ordinance of the governing body of the county. The act further repeals the provision that all expenses incurred by the trustees in the performance of their duties must be reimbursed by the district. This act also repeals certain provisions regarding counties with a ten-member board of 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.(Section 204.300)

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. (Section 204.610)

These provisions are identical to provisions in HCS/SB 155 (2023).

A LARGE WATER PUBLIC UTILITY ACQUIRING A SMALL WATER UTILITY

Under the act, the Public Service Commission shall issue its decision establishing the ratemaking rate base of the small water utility in its order approving the acquisition of a small water utility by a large water public utility within 6 months of the submission of the application. This act further modifies the definition of "large water public utility".

Prior to the expiration of the six-month period, the Commission staff or the Office of Public Counsel may request from the Commission an extension for approval of the application for an additional 30 days. (Section 393.320)

This act is substantially similar to SCS/SB 567 (2023), and similar to provisions in HB 1152 (2023) and provisions in HCS/SB 275 (2023).

RENEWABLE ENERGY STANDARD

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 this provision 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 2023. (Section 393.1030)

These provisions are similar to SCS/SB 374 (2023).

DISCOUNTED GAS RATES FOR GAS CORPORATION CUSTOMERS

This act creates provisions for gas corporation customers to be considered for a discounted gas rate.

Under the act, a new or an existing gas corporation account meeting the criteria under the act shall qualify for 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 under the act, 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 to a customer's utilization of 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 at least 90 days prior to the date the customer requests that the incremental usage receive one of the discounts provided for by this subsection and shall enter into a written agreement with the gas corporation reflecting the discount percentages and other pertinent details prior to which no discount will be available. 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 consumption annually to determine continued qualification for the applicable discount. The cents-pre-CCF realization resulting from application of any discounted rates as calculated shall be higher than the gas corporation’s variable cost to serve such incremental usage and the applicable discounted rate shall also make a positive contribution to fixed costs associated with service to such incremental usage. 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 prospectively to the extent necessary to do so.

In each general rate proceeding concluded after August 28, 2024, the difference in revenues with the discounts under the act and the revenues without such discounts shall not be imputed into the gas corporation’s revenue requirement. Instead, such revenue requirement shall be set 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 under the act shall not constitute incremental usage. The discounted rates under the act 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 under the act in the same manner as such rate adjustments would apply in absence of these provisions.(Section 393.1645)

These provisions are similar to SB 638 (2023) and HB 1143 (2023).

REVIEW OF FINANCING ORDERS FOR ENERGY TRANSITION COSTS

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. (Section 393.1700)

These provisions are identical to HCS/HB 1071 (2023) and similar to SB 520 (2023).

SECURITIZED UTILITY TARIFF

Any customer receiving electrical service under a Commission-approved market-based tariff with a load of at least 80 megawatts, where the servicing electrical corporation has a Commission-approved mark-based tariff as of the end of 2023, is exempt from any securitized utility tariff charges as described in the act. (Section 393.1700)

HYDRANT INSPECTION PROGRAM

Currently, all community water systems are required to create a hydrant inspection program which includes annual testing of every hydrant of such community water systems. This act repeals the annual testing requirement of such hydrants and provides for a scheduled testing of such hydrants. (Section 640.144)

These provisions are identical to SB 629 (2023) and HB 891 (2023).

JULIA SHEVELEVA