HB 723 -- Recovery of Certain Costs by Electrical Corporations

Co-Sponsors:  Mays (50), Burton

This bill establishes a procedure to allow electrical
corporations an opportunity to recover their reasonably and
prudently incurred costs of natural gas associated with the
production of electricity in certain plants for retail
customers.  Until one year following the effective date of the
bill, 100% recovery of costs for natural gas used to generate
electricity and transportation is authorized and thereafter 50%
of costs may be recovered.  The rate schedules for this recovery
mechanism must be initially established in a general rate
proceeding for each electrical corporation before the Public
Service Commission.  Once the recovery rate schedule is
established, replacement schedules must be filed with the
commission every 6 months, regardless of whether or not a change
is sought.

The bill outlines information required for each filing.  The
filings will be considered on an expedited basis and the
commission must issue a ruling within 45 days of the filing
date.  The Office of Public Counsel and any customer have
standing to intervene in any proceeding.  If, when reviewing any
recovery rate schedule filing, the commission finds evidence of
a substantial possibility that an electrical corporation is
over-earning, the commission is required to initiate a general
rate proceeding for that corporation.

The bill requires the commission to establish a "true-up"
mechanism similar to that used for purchased gas cost recovery
by gas corporations.  This true-up mechanism will accurately and
appropriately remedy any over-collections from previous
adjustment periods through a refund procedure including
interest.  The electrical corporation is not entitled to collect
under-collections from any previous adjustment periods.

The bill also authorizes electrical corporations to request,
within 90 days of the effective date of the bill, emergency
establishment of interim schedules in the manner specified in
the bill.  Emergency schedules will only be established when, at
the time of the filing, the electrical corporation is
experiencing at least a 25% increase in the price of natural gas
as compared to the price used to establish its current rate
schedules.

The bill has an emergency clause.

Missouri House of Representatives
Last Updated September 13, 2001 at 2:03 pm