HB 324 -- Utility Contracts and Projects

Co-Sponsors:  Richard, Stevenson, Dixon, Rector, Sager, Viebrock,
Willoughby, Skaggs, LeVota

This bill allows gas and electric corporations, prior to entering
into certain new contracts or construction projects, to file a
petition with the Public Service Commission requesting a
determination of how costs will be recovered in retail rates over
the term of the contract or useful life of the constructed
facility.  To be eligible, contracts must be for the purchase of
at least $5 million of electric power; and projects must involve
construction of a new electric or gas plant costing at least $5
million for companies serving up to 100,000 Missouri customers,
at least $12 million for companies serving 100,000 to one million
Missouri customers, or at least $25 million for companies serving
more than one million Missouri customers.

After receiving the petition, the commission must issue an order
within 180 days stating the rate-making principles and treatments
that will be used in all cost-related proceedings involving the
contract or facility.  If the commission does not act within 180
days, the rate-making principles and treatments proposed by the
corporation will be considered approved.  Within one year after
the determination, the corporation must notify the commission if
it plans to participate in the contract or construction project.
If the corporation decides not to participate, the determination
will be invalid and have no precedential value in subsequent
proceedings.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am