Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 4240 - Public Service Commission
Chapter 20 - Electric Utilities
Section 20 CSR 4240-20.100 - Electric Utility Renewable Energy Standard Requirements
Universal Citation: 20 MO Code of State Regs 4240-20.100
Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This rule sets the definitions, structure, operation, and procedures relevant to compliance with the Renewable Energy Standard.
(1) Definitions. For the purpose of this rule-
(A) Calendar
year means a period of three hundred sixty-five (365) days (or three hundred
sixty-six (366) days for leap years) that includes January 1 of the year and
all subsequent days through and including December 31 of the same
year;
(B) Co-fire means
simultaneously using multiple fuels in a single generating unit to produce
electricity;
(C) Commission means
the Public Service Commission of the state of Missouri;
(D) Customer-generator means the owner,
lessee, or operator of an electric energy generation unit that meets all of the
following criteria:
1. Is powered by a
renewable energy resource;
2. Is
located on premises that are owned, operated, leased, or otherwise controlled
by the party as retail account holder and which corresponds to the service
address for the retail account;
3.
Is interconnected and operates in parallel phase and synchronization with an
electric utility and has been approved for interconnection by said electric
utility; and
4. Meets all
applicable safety, performance, interconnection, and reliability standards of
the net metering rule,
4 CSR
240-20.065(1)(C) 6. and
4 CSR
240-20.065(1)(C) 7.
(E) Division means the Division of
Energy, Department of Economic Development;
(F) Electric utility means an electrical
corporation as defined in section
386.020,
RSMo;
(G) General rate proceeding
means a general rate proceeding before the commission where the commission
considers all relevant factors that may affect the costs or rates and charges
of the electric utility when setting rates;
(H) Green pricing program means a voluntary
program that provides an electric utility's retail customers an opportunity to
purchase renewable energy or renewable energy credits (RECs);
(I) OPC means the Office of the Public
Counsel;
(J) Operational means all
of the major components of the on-site solar photovoltaic system have been
purchased and installed on the customer generator's premises, and the
production of rated net electrical generation has been measured by the utility.
If a customer has satisfied all of the System Completion Requirements by June
30 of indicated years, but the electric utility is not able to complete all of
the electric utility's steps needed to establish an Operational Date on or
before June 30, the rebate rate will be determined as though the Operational
Date was June 30. If it is subsequently determined that the customer or the
System did not satisfy all Completion Requirements required of the customer on
or before June 30, the rebate rate will be determined based on the Operational
Date;
(K) PVWatts[TM] means the
site specific data calculator that uses hourly typical meteorological year
weather data and a photovoltaic performance model to estimate annual energy
production and costs savings for a photovoltaic system;
(L) Rate class means a customer class defined
in an electric utility's tariff. Generally, rate classes include Residential,
Small General Service, Large General Service, and Large Power Service, but may
include additional rate classes. Each rate class includes all customers served
under all variations of the rate schedules available to that class;
(M) REC, Renewable Energy Credit, or
Renewable Energy Certificate means a trad-able certificate, that is either
certified by an entity approved as an acceptable authority by the commission or
as validated through the commission's approved REC tracking system or a
generator's attestation. RECs validated through an attestation must be signed
by an authorized individual of the company that owns the renewable energy
resource. Such attestation shall contain the name and address of the generator,
the type of renewable energy resource technology, and the time and date of the
generation. A REC represents that one (1) megawatt-hour of electricity has been
generated from renewable energy resources. RECs include, but are not limited
to, solar renewable energy credits. A REC expires three (3) years from the date
the electricity associated with that REC was generated;
(N) Renewable energy resource(s) means
electric energy, produced from the following:
1. Wind;
2. Solar, including solar thermal sources
utilized to generate electricity, photovoltaic cells, or photovoltaic
panels;
3. Dedicated crops grown
for energy production;
4.
Cellulosic agricultural residues;
5. Plant residues;
6. Methane from landfills, from agricultural
operations or wastewater treatment;
7. Thermal depolymerization or pyroly-sis for
converting waste material to energy;
8. Clean and untreated wood, such as
pallets;
9. Hydropower (not
including pumped storage) that does not require a new diversion or impoundment
of water and that has generator nameplate ratings of ten (10) megawatts or
less;
10. Fuel cells using hydrogen
produced by any of the renewable energy technologies in paragraphs 1. through
9. of this subsection; and
11.
Other sources of energy not including nuclear that become available after
November 4, 2008, and are certified as renewable by rule by the
division;
(O) RES or
Renewable Energy Standard means sections
393.1025 and
393.1030,
RSMo;
(P) RESRAM or Renewable
Energy Standard Rate Adjustment Mechanism means a mechanism that allows
periodic rate adjustments to recover prudently incurred RES compliance costs
and pass-through to customers the benefits of any savings achieved in meeting
the requirements of the Renewable Energy Standard;
(Q) RES compliance costs means prudently
incurred costs, both capital and expense, directly related to compliance with
the Renewable Energy Standard. Prudently incurred costs do not include any
increased costs resulting from negligent or wrongful acts or omissions by the
electric utility;
(R) RES portfolio
requirements mean the numeric values and other requirements established by
section 393.1030.1, RSMo, which are-
1. No
less than two percent (2%) in each calendar year 2011 through 2013;
2. No less than five percent (5%) in each
calendar year 2014 through 2017;
3.
No less than ten percent (10%) in each calendar year 2018 through 2020;
and
4. No less than fifteen percent
(15%) in each calendar year beginning in 2021.
5. At least two percent (2%) of each RES
portfolio requirement listed in this section shall be derived from solar
energy. The RES portfolio requirements for solar energy are-
A. No less than four-hundredths percent
(0.04%) in each calendar year 2011 through 2013;
B. No less than one-tenth percent (0.1%) in
each calendar year 2014 through 2017;
C. No less than two-tenths percent (0.2%) in
each calendar year 2018 through 2020; and
D. No less than three-tenths percent (0.3%)
in each calendar year beginning in 2021;
(S) The RES revenue requirement means the
following:
1. All expensed RES compliance
costs (other than taxes and depreciation associated with capital projects) that
are included in the electric utility's revenue requirement in the proceeding in
which the RESRAM is established, continued, modified, or discontinued;
and
2. The costs (i.e., the return,
taxes, and depreciation) of any capital projects whose primary purpose is to
permit the electric utility to comply with any RES requirement. The costs of
such capital projects shall be those identified on the electric utility's books
and records as of the last day of the test year, as updated, utilized in the
proceeding in which the RESRAM is established, continued, modified, or
discontinued;
(T) Solar
renewable energy credit or S-REC means a REC created by generation of electric
energy from solar thermal sources, photovoltaic cells, and photovoltaic
panels;
(U) Staff means all
commission employees, except the secretary to the commission, general counsel,
technical advisory staff as defined by section
386.135,
RSMo, hearing officer, or administrative or regulatory law judge;
(V) Standard Test Conditions means solar
incidence of one (1) kilowatt (kW) per square meter and a cell or panel
temperature of twenty-five degrees centigrade (25 °C) for measuring the
capability of solar electrical generating equipment;
(W) Total retail electric sales, or total
retail electric energy usage, means the megawatt-hours (MWh) of electricity
delivered in a specified time period by an electric utility to its Missouri
retail customers as reflected in the retail customers' monthly billing
statements; and
(X) Utility
renewable energy resources mean those renewable energy resources that are
owned, controlled, or purchased by the electric utility.
(2) Requirements. Pursuant to the provisions of this rule and sections 393.1025 and 393.1030, RSMo, all electric utilities must generate or purchase RECs and S-RECs associated with electricity from renewable energy resources in sufficient quantity to meet the RES portfolio requirements (renewable and solar) on a calendar year basis. Utility renewable energy resources utilized for compliance with this rule must include the RECs or S-RECs associated with the generation. The RES portfolio requirements are based on total retail electric sales of the electric utility. The requirements set forth in this rule shall not preclude an electric utility from recovering all of its prudently incurred investment and costs incurred for renewable energy resources that exceed the requirements or limits of this rule but are consistent with the prudent implementation of any resource acquisition strategy the electric utility developed in compliance with 4 CSR 240-22, Electric Utility Resource Planning. RECs or S-RECs produced from these additional renewable energy resources may count toward the RES portfolio requirements.
(A) Reserved*
(B) The amount of renewable energy resources
or RECs that can be counted towards meeting the RES portfolio requirements are
as follows:
1. If the facility generating the
renewable energy resource is located in Missouri, the allowed amount is the
kilowatt-hours (kWhs) generated by the applicable generating facility,
multiplied by one and twenty-five hundredths (1.25) to effectuate the credit
pursuant to section 393.1030.1, RSMo and subsection (3)(G) of this rule;
and
2. Reserved*;
3. RECs created by the operation of
customer-generator facilities and acquired by the Missouri electric utility
shall qualify for RES compliance if the customer-generator is a Missouri
electric energy retail customer, regardless of the amount of energy the
customer-generator provides to the associated retail electric provider through
net metering in accordance with
4 CSR
240-20.065, Net Metering. RECs are created by the
operation of the customer-generator facility, even if a significant amount or
the total amount of electrical energy is consumed on-site at the location of
the customer-generator.
(C) If compliance with the RES portfolio
requirements would cause the retail rates of an electric utility to increase on
average in excess of one percent (1%) as calculated per section (5) of this
rule, then compliance with those mandates shall be limited so that the cost of
them would not cause retail rates of the electric utility to increase on
average one percent (1%) as calculated per section (5) of this rule.
(D) If an electric utility is not required to
meet the RES portfolio requirements in a calendar year, because doing so would
cause retail rates to increase on average in excess of one percent (1%) as
calculated per section (5) of this rule, then the RES portfolio requirement for
solar energy shall be no less than two percent (2%) of the renewable energy
resources that can be acquired subject to the one percent (1%) average retail
rates limit as calculated per section (5) of this rule.
(E) If an electric utility intends to accept
proposals for renewable energy resources to be owned by the electric utility or
an affiliate of the electric utility, it shall comply with the necessary
requirements of 4 CSR 240-20.015, Affiliate
Transactions.
(3) RECs and S-RECs. Subject to the requirements of section (2) of this rule, RECs and S-RECs shall be utilized to satisfy the RES requirements of this rule. S-RECs shall be utilized to comply with the RES portfolio requirements for solar energy and may be utilized to comply with the RES portfolio requirements for other renewable energy resources.
(A) The REC
or S-REC creation is linked to the associated renewable energy resource. For
purposes of retaining RECs or S-RECs, the utility, person, or entity
responsible for creation of the REC or S-REC must maintain verifiable records
that prove the creation date. The electric utility shall comply with the
requirement of this subsection through the registration of the REC in the
commission's approved REC tracking system.
(B) A REC may only be used once to comply
with this rule. RECs or S-RECs used to comply with this rule may not also be
used to satisfy any other nonfederal renewable energy standard or requirement.
Electric utilities may not use RECs or S-RECs retired under a green pricing
program to comply with this rule. RECs and S-RECs may be used to comply with
the RES portfolio requirements of this rule for a calendar year in which it
expired so long as it was valid at any time in that year.
(C) Customer-generators own the RECs and
S-RECs associated with their customer-generated net-metered renewable energy
resources; however, if a customer generator receives a solar rebate, the
customer-generator transfers to the electric utility all right, title, and
interest in and to the RECs associated with the new or expanded solar electric
system that qualifies the customer-generator for the solar rebate for a period
of ten (10) years from the date the electric utility confirms the
customer-generator's solar electric system is operational.
1. All standard offer contracts between
electric utilities and the owners of net-metered renewable resources that are
entered into after the effective date of these rules shall clearly specify who
owns the RECs or S-RECs associated with the energy generated by the net-metered
generation resource, and when the ownership will change, if it will.
2. Electric metering associated with
net-metered renewable resources shall meet the meter accuracy and testing
requirements of 4 CSR 240-10.030, Standards of
Quality.
(D) RECs that
are generated with fuel cell energy using hydrogen derived from a renewable
energy resource are eligible for compliance purposes only to the extent that
the energy used to generate the hydrogen did not create RECs.
(E) If an eligible renewable energy fuel
source is co-fired with an ineligible fuel source, only the proportion of the
electrical energy output associated with the eligible renewable energy fuel
source shall be permitted to count toward compliance with the RES portfolio
requirements. For co-fired generation of electricity, the renewable energy
resources shall be determined by multiplying the electricity output by the
direct proportion of the as-fired British thermal unit (BTU) content of the
fuel burned that is a source of renewable energy resources as defined in this
rule to the as-fired BTU content of the total fuel burned.
(F) All electric utilities shall use a
commission designated common central third-party registry for REC accounting
for RES portfolio requirements, unless otherwise ordered for good cause
shown.
(G) RECs created by the
generation of electricity by a renewable energy resource physically located in
the state of Missouri shall count as one and twenty-five hundredths (1.25) RECs
for purposes of compliance with this rule. This additional credit shall not be
tracked in the tracking systems specified in subsection (F) of this section.
This additional credit of twenty-five hundredths (0.25) shall be recognized
when the electric utility files its annual compliance report in accordance with
section (7) of this rule.
(H) RECs
created by the generation of electricity at a facility that subsequently fails
to meet the requirements for renewable energy resources are valid if they were
created before the date at which the facility is decertified.
(I) Electric utilities required to comply
with this rule may purchase or sell RECs, either bilaterally or in any open
market system, inside or outside the state, without prior commission
approval.
(J) For compliance
purposes, electric utilities shall retire RECs in sufficient quantities to meet
the RES portfolio requirements of this rule. The RECs shall be retired during
the calendar year for which compliance is sought. Electric utilities may retire
RECs from January 1 through April 15 of the following year, following the
calendar year for which compliance is being sought and designate those retired
RECs as counting towards the requirements of that previous calendar year. Any
RECs retired in this manner shall be specifically annotated in the registry
designated in accordance with subsection (F) of this section and the annual
compliance report filed in accordance with section (7) of this rule. RECs
retired from January 1 through April 15 of the following year, to be counted
towards compliance for the previous calendar year in accordance with this
subsection shall not exceed ten percent (10%) of the total RECs necessary to be
retired for compliance for that calendar year.
(K) RECs may be aggregated with other RECs
for compliance purposes. RECs shall be issued in whole increments. Any
fractional RECs, aggregated or non-aggregated, remaining after certificate
issuance will be carried forward to the next reporting period for the specific
facility(ies). REC aggregation may be performed by electric utilities,
customer-generators, or others.
(L)
Fractional RECs may be aggregated with other fractional RECs and utilized for
compliance with this rule.
(4) Solar Rebate. Pursuant to sections 393.1030 and 393.1670, RSMo, and this rule, electric utilities shall include in their tariffs a provision regarding retail account holder rebates for solar electric systems. These rebates shall be available to Missouri electric utility retail account holders who install new or expanded solar electric systems comprised of photovoltaic cells or photovoltaic panels. As used in this section, customer means retail account holder.
(A) The retail account holder must be
an active account on the electric utility's system and in good payment
standing.
(B) The solar electric
system must be permanently installed on the account holder's premises. As
installed, the solar electric system shall be situated in a location where a
minimum of eighty-five percent (85%) of the solar resource is available to the
system as verified by the customer or the customer's installer at the time of
installation.
(C) The installed
solar electric system must remain in place on the account holder's
(customer-generator's) premises for ten (10) years unless determined otherwise
by the commission.
(D) Solar
electric systems installed by retail account holders must consist of equipment
that is commercially available and factory new when installed on the original
account holder's premises, and the principal system components (i.e.,
photovoltaic modules and inverters) shall be covered by a functional warranty
from the manufacturer for a minimum period of ten (10) years, unless determined
otherwise by the commission, with the exception of solar battery components.
Rebuilt, used, or refurbished equipment is not eligible to receive the rebate.
1. Solar rebates made available prior to
January 1, 2019, shall be limited to twenty-five (25) kW for any applicable
retail account. Retail accounts which have been awarded rebates for an
aggregate of less than twenty-five (25) kW shall qualify to apply for rebates
for system expansions up to an aggregate of twenty-five (25) kW. Systems
greater than twenty-five (25) kW but less than one hundred (100) kW in size
shall be eligible for a solar rebate up to the twenty-five (25) kW limit of
this section.
2. Solar rebates for
systems that become operational after January 1, 2019 shall be available for
new or expanded solar electric systems up to twenty-five (25) kW for
residential customers and one hundred and fifty (150) kW for non-residential
customers. Residential net-metered or interconnected solar electric systems
greater than twenty-five (25) kW but less than one hundred (100) kW in size
shall be eligible for a solar rebate up to the twenty-five (25) kW limit of
this section. Customers shall be eligible for rebates on new or expanded
systems for the increment of new or expanded capacity and not for capacity on
which rebates offered under any other provision of law have previously been
paid, up to the system kilowatt limits outlined in this section.
(E) Solar electric systems which
are less than 100 kW in size shall meet all requirements of
4 CSR
240-20.065, Net Metering, or all the requirements a
customer-generator must meet under
4 CSR
240-20.100(1)(D).
(F) The electric utility may physically audit
customer-generator owned solar electric systems for which it has paid a solar
rebate pursuant to this section, at any reasonable time, with prior notice of
at least three (3) business days provided to the retail account
holder.
(G) For the purpose of
determining the amount of solar rebate, the solar electric system wattage
rating shall be established as the direct current wattage rating provided by
the original manufacturer with respect to standard test conditions.
(H) Standard Offer Contracts.
1. The electric utility may, at its
discretion, offer a standard contract for the purchase of S-RECs created by the
customer-generator's installed solar electric system.
2. If the electric utility chooses to offer a
standard offer contract, the electric utility shall file tariff sheets
detailing the provision of the contract no later than November 1 each year for
the following compliance year. Workpapers documenting the purchase prices shall
be submitted with the tariff filing.
(I) No customer-generator is required by this
rule to sell any or all S-RECs to the electric utility; however, a condition of
receiving a solar rebate from an electric utility is that all right, title, and
interest in and to the RECs associated with the new or expanded solar electric
system that qualifies the customer-generator for the solar rebate is
transferred to the electric utility paying the rebate for a period of ten (10)
years from the date the electric utility confirms the customer-generator's
solar electric system is operational.
(J) Electric utilities that have acquired
S-RECs under a one- (1-) time lump sum payment in accordance with subsection
(H) of this section or as a result of the solar rebate S-RECs transferred
through the solar rebate may continue to account for purchased S-RECs even if
the owner of the solar electric system ceases to operate the system or the
system is decertified as a renewable energy resource. S-RECs originated under
this subsection shall only be utilized by the original purchasing utility for
compliance with this rule. S-RECs originated under this subsection shall not be
sold or traded.
(K) Electric
utilities that have purchased S-RECs under a one- (1-) time lump sum payment or
otherwise have acquired right, title, and interest in and to S-RECs associated
with solar rebates annually shall estimate, using PVWatts, or actually measure
the S-RECs generated from the customer-generator's operational solar electric
system.
(L) The electric utility
shall provide the solar rebate payment to qualified customer-generators within
thirty (30) days of confirming the customer-generator's solar electric system
is operational.
(M) Any future
payment of valid solar rebate applications, queued for payment prior to August
28, 2018, shall not count toward the annual or aggregate limits prescribed in
section 393.1670(1),
RSMo.
(N) For electric utilities
with less than two hundred thousand (200,000) Missouri retail customers-
1. Solar rebate payments made prior to
January 1, 2019 shall be limited to twenty-five (25) kW for both residential
and non-residential customers; and
2. In the event the limit has been reached,
the electric utility shall continue to process and pay solar rebates until the
electric utility meets or exceeds the retail rate impact limits of section (5)
of this rule. However, these solar rebates shall be limited to twenty-five (25)
kW for both residential and non-residential customers.
(O) An electric utility may, through its
tariff, require applications for solar rebates to be submitted up to one
hundred eighty-two (182) days prior to the June 30 operational dates. The
electric utility will pay the pre-June 30 rebate amount as defined in this
subsection to customer-generators who comply with the submission and system
operational requirements on or before June 30 of the following year.
Customer-generators that fail to meet the submission or system operational
requirements on or before the June 30 date will receive the post-June 30 rebate
amount if the electric utility confirms their solar electric systems are
operational within one (1) year of their application. If a customer has
satisfied all of the System Completion Requirements by June 30 of indicated
years, but the electric utility is not able to complete all of the electric
utility's steps needed to establish an Operational Date on or before June 30,
the rebate rate will be determined as though the Operational Date was June 30.
If it is subsequently determined that the customer or the System did not
satisfy all Completion Requirements required of the customer on or before June
30, the rebate rate will be determined based on the Operational Date.
(P) Unless the commission orders otherwise,
if the electric utility meets or exceeds the retail rate impact limits of
section (5) of this rule, the solar rebates shall be paid as determined by the
solar system operational date. Any solar rebate applications that are not
honored in a particular calendar year due to the requirements of this
subsection shall be considered in the following calendar year.
(Q) An electric utility shall maintain on its
website, current information related to-
1.
The electric utility's solar rebate application and review processes, including
standards for determining application eligibility;
2. The solar rebate amount associated with
pending applications that have been submitted, but not yet reviewed;
3. The current level of solar rebate
payments; and
4. The rebate amount
associated with applications that are approved, but where the solar electric
system is not yet operational.
(5) Retail Rate Impact.
(A) The retail rate impact (RRI), as
calculated in subsection (5)(B), may not exceed one percent (1%) for prudent
costs of renewable energy resources directly attributable to RES compliance.
The retail rate impact shall be calculated annually on an incremental basis for
each planning year based on procurement or development of renewable energy
resources averaged over the succeeding ten- (10-) year period. The retail rate
impact shall exclude renewable energy resources owned or under contract prior
to September 30, 2010.
(B) The RES
retail rate impact shall be determined by subtracting the total retail revenue
requirement incorporating an incremental non-renewable generation and purchased
power portfolio from the total retail revenue requirement including an
incremental RES-compliant generation and purchased power portfolio.
1. The non-renewable generation and purchased
power portfolio shall be determined by adding, to the utility's existing
generation and purchased power resource portfolio excluding all renewable
resources, additional non-renewable resources sufficient to meet the utility's
needs on a least-cost basis for the next ten (10) years.
2. The RES-compliant portfolio shall be
determined by adding to the utility's existing generation and purchased power
resource portfolio an amount of least cost renewable resources sufficient to
achieve the portfolio requirements set forth in section (2) of this rule and an
amount of least-cost non-renewable resources, the combination of which is
sufficient to meet the utility's needs for the next ten (10) years.
3. The cost of the RES-compliant portfolio
shall also include the positive or negative cumulative carry-forward amount as
determined in subsection (5)(G).
4.
Assumptions regarding projected renewable energy resource additions will
utilize the most recent electric utility resource planning analysis. These
comparisons will be conducted utilizing incremental revenue requirement for new
renewable energy resources, less the avoided cost for non-renewable energy
resources due to the addition of renewable energy resources. Such avoided costs
shall be limited to those that may be included in a utility's revenue
requirement for setting rates In addition, the projected impact on revenue
requirements by non-renewable energy resources shall include the expected value
of greenhouse gas emissions compliance costs, assuming that such costs are made
at the expected value of the cost per ton of greenhouse gas emissions
allowances, cost per ton of a greenhouse gas emissions tax (e.g., a carbon
tax), or the cost per ton of greenhouse gas emissions reductions for any
greenhouse gas emission reduction technology that is applicable to the
utility's generation portfolio, whichever is lower. Calculations of the
expected value of costs associated with greenhouse gas emissions shall be
derived by applying the probability of the occurrence of future greenhouse gas
regulations to expected level(s) of costs per ton associated with those
regulations over the next ten (10) years. The impact on revenue requirements by
non-renewable energy resources shall also include consideration of
environmental risks other than those related to regulation or greenhouse gases.
Any costs included to reflect consideration of such risks shall be limited to
those that may be included in a utility's revenue requirement for setting
rates. Any variables utilized in the modeling shall be consistent with values
established in prior rate proceedings, electric utility resource planning
filings, or RES compliance plans, unless specific justification is provided for
deviations. In no event shall the calculation of rate impact double count the
cost of fuel or environmental compliance cost savings.
(C) Solar rebates payments made during any
calendar year in accordance with section (4) of this rule shall be included in
the cost of generation from renewable energy resources.
(D) For purposes of the determination in
accordance with subsection (B) of this section, if the revenue requirement
including the RES-compliant resource mix, averaged over the ten- (10-) year
period, exceeds the revenue requirement that includes the non-renewable
resource mix by more than one percent (1%), the utility shall adjust downward
the proportion of renewable resources so that the average annual revenue
requirement differential does not exceed one percent (1%). In making this
adjustment, the solar requirement shall be in accordance with subsection (2)(D)
of this rule. Prudently incurred costs to comply with the RES portfolio
requirements, and passing this rate impact test, may be recovered in accordance
with section (6) of this rule or through a rate proceeding outside or in a
general rate case. When adjusting downward the proportion of renewable energy
resources, in accordance with this subsection, the utility shall give first
priority to reducing or eliminating the amount of RECs not associated with
electricity delivered to Missouri customers.
(E) Costs or benefits attributed to
compliance with a federal renewable energy standard or portfolio requirement
shall be considered as part of compliance with the Missouri RES if they would
otherwise qualify under the Missouri RES without regard to the federal
requirements.
(F) If the electric
utility determines the maximum average retail rate increase provided for in
section (5) will be reached in any calendar year, the electric utility may
cease paying rebates to the extent necessary to avoid exceeding the maximum
average retail rate increase by filing a request with the commission, at least
sixty (60) days in advance, to suspend the solar rebate provisions in its
tariff for the remainder of the calendar year.
1. The filing with the commission to suspend
the electric corporation's solar rebate tariff provision shall include:
A. Its calculation reflecting that the
maximum average retail rate increase will be reached with supporting
documentation;
B. A proposed
procedural schedule; and
C. A
description of the process that it will use to cease or conclude the solar
rebate payments to solar customers if the commission suspends its solar rebate
tariff provision.
2. The
commission shall rule on the suspension filing within sixty (60) days of the
date it is filed. If the commission determines the maximum average retail rate
increase will be reached, the commission shall suspend solar rebate payments.
The commission will not suspend payment of solar rebates unless it expressly
finds that the electric utility has accurately calculated the retail rate
impact in the manner prescribed by this section (5).
3. The electric utility shall continue to
process and pay applicable solar rebates until a final commission ruling.
A. If continuing to pay solar rebates causes
the electric utility to exceed the maximum average retail rate increase, the
excess payments shall not be considered to have been imprudently incurred for
that reason.
(G) The utility shall calculate for each
actual compliance year an annual carry-forward amount, illustration included
herein as Attachment A. This amount shall be calculated as the positive or
negative difference between the actual costs of RES compliance and an amount
equal to the one percent (1%) cap, as calculated in subsection (5)(B), for the
non-renewable generation and purchased power portfolio from its most recent
annual RES compliance plan filed pursuant to subsection (7)(B) of this rule.
The positive or negative cumulative carry-forward amount shall be calculated by
accumulating the annual positive or negative annual carry-forward amounts. The
initial cumulative carry-forward amount shall be equal to the sum of the annual
carry-forward amounts for the period January 1, 2015, through December 31,
2015. Any annual carry-forward amounts shall be based on the revenue
requirements analysis included in the utility's Annual RES Compliance Plan
filed pursuant to subsection (8)(B) for each respective year. The positive or
negative cumulative carry-forward amount shall be included in the cost of the
RES-compliant portfolio for purposes of calculating the retail rate impact, as
calculated in subsection (5)(B). Nothing in this subsection shall authorize
recovery in excess of the one percent (1%) cap, as defined in subsection
(5)(B).
(H) If in reliance on a
calculation of the RRI as provided for herein, an electric utility commits to
fund a utility-owned renewable energy resource, or contracts to acquire energy
or capacity from a renewable energy resource that, based on the relied-upon RRI
calculation would not cause the electric utility to exceed such RRI, then the
prudently incurred costs of such renewable energy resource and such energy and
capacity shall constitute RES compliance costs even if including such costs in
later calculations will cause the electric utility to exceed the RRI calculated
at a later time. To the extent the prudently incurred costs of a utility-owned
renewable energy resource, or contracted for energy or capacity from a
renewable energy resource, cause an electric utility to exceed the RRI
calculated at a later time, such excess sum shall be included in the
determination of the carry-forward amount in accordance with subsection
(5)(G).
(I) Not withstanding
anything in subsection (5)(H), until June 30, 2020, if the maximum average
retail rate increase, as calculated pursuant to subsection (5)(B) would be less
than or equal to one percent (1%) if an electric utility's investment in
solar-related projects initiated, owned, or operated by the electric utility is
ignored for purposes of calculating the increase, then additional solar rebates
shall be made available and included in rates in an amount up to the amount
that would produce a retail rate increase equal to the difference between a one
percent (1%) retail rate increase and the retail rate increase calculated when
ignoring an electric utility's investment in solar projects initiated, owned,
or operated by the electric utility.
(J) Each electric utility shall calculate its
actual calendar year RRI each year and shall file those calculations as part of
its annual RES compliance plan. The electric utility may designate all or part
of those calculations as highly confidential, proprietary, or public as
appropriate under the commission's rules.
(6) Cost Recovery and Pass-through of Benefits. An electric utility outside or in a general rate proceeding may file an application and rate schedules with the commission to establish, continue, modify, or discontinue a Renewable Energy Standard Rate Adjustment Mechanism (RESRAM) that shall allow for the adjustment of its rates and charges to provide for recovery of prudently incurred costs or pass-through of benefits received as a result of compliance with the RES; provided that the average annual impact on retail customer rates does not exceed one percent (1%) over a ten-(10-) year period as set out in subsections (5)(A), (B) and (G). In all RESRAM applications, the increase in electric utility revenue requirements shall be calculated as the amount of additional RES compliance costs incurred since the electric utility's last RESRAM application or general rate proceeding, net of any reduction in RES compliance costs included in the electric utility's prior RESRAM application or general rate case, and any new RES compliance benefits.
(A) For all RESRAM
filings, except the initial filings by the electric utility, if the actual
increase in utility revenue requirement is less than two percent (2%),
subsection (B) of this section shall be utilized. If the actual increase in
utility revenue requirement is equal to or greater than two percent (2%),
subsection (C) of this section shall be utilized. For the initial filing by the
electric utility in accordance with this section, subsection (B) of this
section shall be utilized as well, except that the staff, and individuals or
entities granted intervention by the commission, may file a report or comments
no later than one hundred twenty (120) days after the electric utility files
its application and rate schedules to establish a RESRAM.
1. The pass-through of benefits has no
single-year cap or limit.
2. Any
party in a rate proceeding in which a RESRAM is in effect or proposed may seek
to continue as is, modify, or oppose the RESRAM. The commission shall approve,
modify, or reject such applications and rate schedules to establish a RESRAM
only after providing the opportunity for an evidentiary hearing.
3. If the electric utility incurs costs in
complying with the RES that exceed the one percent (1%) rate limit determined
in accordance with section (5) of this rule for any year, those excess costs
may be carried forward to future years for cost recovery permitted under this
rule. Any costs carried forward shall have a carrying cost applied to them
monthly equal to the interest on those carried forward costs calculated at the
electric utility's short-term borrowing rate. These carried forward costs plus
accrued carrying costs plus additional annual costs remain subject to the one
percent (1%) rate limit for any subsequent years. In any calendar year that
costs from a previous compliance year are carried forward, the carried forward
costs will be considered for cost recovery prior to any new costs for the
current calendar year.
4. For
ownership investments in eligible renewable energy technologies in a RESRAM
application, the electric utility shall be entitled to a rate of return equal
to the electric utility's most recent authorized rate of return on rate base.
Recovery of the rate of return for investment in renewable energy technologies
in a RESRAM application is subject to the one percent (1%) limit specified in
section (5) of this rule.
5. Upon
the filing of proposed rate schedules with the commission seeking to recover
costs or pass-through benefits of RES compliance, the commission will provide
general notice of the filing.
6.
The electric utility shall provide the following notices to its customers, with
such notices to be approved by the commission in accordance with paragraph 7.
of this subsection before the notices are sent to customers:
A. An initial, one- (1-) time notice to all
potentially affected customers, such notice being sent to customers no later
than when customers will receive their first bill that includes a RESRAM,
explaining the utility's RES compliance and identifying the statutory authority
under which it is implementing a RESRAM;
B. An annual notice to affected customers
each year that a RESRAM is in effect explaining the continuation of its RESRAM
and RES compliance; and
C. A RESRAM
line item on all customer bills, which informs the customers of the presence
and amount of the RESRAM charge.
7. Along with the electric utility's filing
of proposed rate schedules to establish a RESRAM, the utility shall file the
following items with the commission for approval or rejection, and the OPC may,
within ten (10) days of the utility's filing of this information, submit
comments regarding these notices to the commission:
A. An example of the notice required by
subparagraph (A)6.A. of this section;
B. An example of the notice required by
subparagraph (A)6.B. of this section; and
C. An example customer bill showing how the
RESRAM will be described on affected customers' bills in accordance with
subparagraph (A)6.C. of this section.
8. An electric utility may effectuate a
change in its RESRAM no more often than one (1) time during any calendar year,
not including changes as a result of paragraph 11. of this
subsection.
9. Submission of
Surveillance Monitoring Reports. Each electric utility with an approved RESRAM
shall submit to staff, OPC, and parties approved by the commission, a
Surveillance Monitoring Report. The form of the Surveillance Monitoring Report
is included herein.
A. The Surveillance
Monitoring Report shall be submitted within fifteen (15) days of the electric
utility's next scheduled United States Securities and Exchange Commission (SEC)
10-Q or 10-K filing with the initial submission within fifteen (15) days of the
electric utility's next scheduled SEC 10-Q or 10-K filing following the
effective date of the commission order establishing the RESRAM.
B. If the electric utility also has an
approved fuel rate adjustment mechanism or environmental cost recovery
mechanism (ECRM), the electric utility shall submit a single Surveillance
Monitoring Report for the RESRAM, ECRM, the fuel rate adjustment mechanism, or
any combination of the three (3). The electric utility shall designate on the
single Surveillance Monitoring Report whether the submission is for RESRAM,
ECRM, fuel rate adjustment mechanism, or any combination of the three
(3).
C. Upon a finding that a
utility has knowingly or recklessly provided materially false or inaccurate
information to the commission regarding the surveillance data prescribed in
this paragraph, after notice and an opportunity for a hearing, the commission
may suspend its RESRAM or order other appropriate remedies as provided by
law.
10. The RESRAM
charge will be calculated as a percentage of the customer's energy charge for
the applicable billing period.
11.
Commission approval of proposed rate schedules, to establish or modify a
RESRAM, shall in no way be binding upon the commission in determining the
ratemaking treatment to be applied to RES compliance costs during a subsequent
general rate proceeding when the commission may undertake to review the
prudence of such costs. If the commission disallows, during a subsequent
general rate proceeding, recovery of RES compliance costs previously in a
RESRAM, or pass-through of benefits previously in a RESRAM, the electric
utility shall offset its RESRAM in the future as necessary to recognize and
account for any such costs or benefits. The offset amount shall include a
calculation of interest at the electric utility's short-term borrowing rate as
calculated in subparagraph (A)26.A. of this section. The RESRAM offset will be
designed to reconcile such disallowed costs or benefits within the six- (6-)
month period immediately subsequent to any commission order regarding such
disallowance.
12. At the end of
each twelve- (12-) month period that a RESRAM is in effect, the electric
utility shall reconcile the differences between the revenues resulting from the
RESRAM and the pretax revenues as found by the commission for that period and
shall submit the reconciliation to the commission with its next sequential
proposed rate schedules for RESRAM continuation or modification.
13. An electric utility that has implemented
a RESRAM shall file revised RESRAM rate schedules to reset the RESRAM charge to
zero (0) when new base rates and charges become effective following a
commission report and order establishing customer rates in a general rate
proceeding that incorporates RES compliance costs or benefits previously
reflected in a RESRAM in the utility's base rates. If an over- or
under-recovery of RESRAM revenues or over- or under-pass-through of RESRAM
benefits exists after the RESRAM charge has been reset to zero (0), that amount
of over- or under-recovery, or over- or under-pass-through, shall be tracked in
an account and considered in the next RESRAM filing of the electric
utility.
14. Upon the inclusion of
RES compliance cost or benefit pass-through previously reflected in a RESRAM
into an electric utility's base rates, the electric utility shall immediately
thereafter reconcile any previously unreconciled RESRAM revenues or RESRAM
benefits and track them as necessary to ensure that revenues or pass-through
benefits resulting from the RESRAM match, as closely as possible, the
appropriate pretax revenues or pass-through benefits as found by the commission
for that period.
15. In addition to
the information required by subsection (B) or (C) of this section, the electric
utility shall also provide the following information when it files proposed
rate schedules with the commission seeking to establish, modify, or reconcile a
RESRAM:
A. A description of all information
posted on the utility's website regarding the RESRAM; and
B. A description of all instructions provided
to personnel at the utility's call center regarding how those personnel should
respond to calls pertaining to the RESRAM.
16. RES compliance costs shall only be
recovered through a RESRAM or as part of a general rate proceeding and shall
not be considered for cost recovery through an environmental cost recovery
mechanism, fuel adjustment clause, or interim energy charge.
17. Pre-existing adjustment mechanisms,
tariffs, and regulatory plans. The provisions of this rule shall not affect-
A. Any adjustment mechanism, rate schedule,
tariff, incentive plan, or other ratemaking mechanism that was approved by the
commission and in effect prior to September 30, 2010; and
B. Any experimental regulatory plan that was
approved by the commission and in effect prior to September 30, 2010;
and
C. The commission's reports and
orders in file numbers ET-2014-0059, ET-2014-0071, and ET-2014-0085.
18. Each electric utility with a
RESRAM shall submit, with an affidavit attesting to the veracity of the
information, the following information on a monthly basis to the manager of the
auditing unit of the commission and to OPC. The information shall be submitted
to the manager of the auditing department through the electronic filing and
information system (EFIS). The following information shall be aggregated by
month and supplied no later than sixty (60) days after the end of each month
when the RESRAM is in effect. The first submission shall be made within sixty
(60) days after the end of the first complete month after the RESRAM goes into
effect. It shall contain, at a minimum-
A.
The revenues billed pursuant to the RESRAM by rate class and voltage level, as
applicable;
B. The revenues billed
through the electric utility's base rate allowance by rate class and voltage
level;
C. All significant factors
that have affected the level of RESRAM revenues along with workpapers
documenting these significant factors;
D. The difference, by rate class and voltage
level, as applicable, between the total billed RESRAM revenues and the
projected RESRAM revenues;
E. Any
additional information the commission orders be provided; and
F. To the extent any of the requested
information outlined above is provided in response to another section, the
information only needs to be provided once.
19. Information required to be filed with the
commission or submitted to the manager of the auditing unit of the commission
and to OPC in this section shall also be, in the same format, served on or
submitted to any party to the related rate proceeding in which the RESRAM was
approved by the commission, periodic adjustment proceeding, prudence review, or
general rate case to modify, continue, or discontinue the same RESRAM, pursuant
to the procedures in 4 CSR 240-2.135 for handling
confidential information, including any commission order issued
thereunder.
20. A person or entity
granted intervention in a rate proceeding in which a RESRAM is approved by the
commission shall be a party to any subsequent related periodic adjustment
proceeding or prudence review, without the necessity of applying to the
commission for intervention; and the commission shall issue an order
identifying them. In any subsequent general rate proceeding, such person or
entity must seek and be granted status as an intervenor to be a party to that
case. Affidavits, testimony, information, reports, and workpapers to be filed
or submitted in connection with a subsequent related periodic adjustment
proceeding, prudence review, or general rate case to modify, continue, or
discontinue the same RESRAM shall be served on or submitted to all parties from
the prior related rate proceeding and on all parties from any subsequent
related periodic adjustment proceeding, prudence review, or general rate case
to modify, continue, or discontinue the same RESRAM, concurrently with filing
the same with the commission or submitting the same to the manager of the
auditing unit of the commission and OPC, pursuant to the procedures in
4 CSR
240-2.135 for handling confidential information,
including any commission order issued thereunder.
21. A person or entity not a party to the
rate proceeding in which the commission approves a RESRAM may timely apply to
the commission for intervention, pursuant to sections
4 CSR
240-2.075(2) through (4) of the
commission's rule on intervention, respecting any related subsequent periodic
adjustment proceeding, or prudence review, or, pursuant to sections
4 CSR
240-2.075(1) through (5), respecting
any subsequent general rate case to modify, continue, or discontinue the same
RESRAM. If no party to a subsequent periodic adjustment proceeding or prudence
review objects within ten (10) days of the filing of an application for
intervention, the applicant shall be deemed as having been granted intervention
without a specific commission order granting intervention, unless, within the
above-referenced ten- (10-) day period, the commission denies the application
for intervention on its own motion. If an objection to the application for
intervention is filed on or before the end of the above-referenced ten- (10-)
day period, the commission shall rule on the application and the objection
within ten (10) days of the filing of the objection.
22. The results of discovery from a rate
proceeding where the commission may approve, modify, reject, continue, or
discontinue a RESRAM, or from any subsequent periodic adjustment proceeding or
prudence review relating to the same RESRAM, may be used without a party
resubmitting the same discovery requests (data requests, interrogatories,
requests for production, requests for admission, or depositions) in the
subsequent proceeding to parties that produced the discovery in the prior
proceeding, subject to a ruling by the commission concerning any evidentiary
objection made in the subsequent proceeding.
23. If a party which submitted data requests
relating to a proposed RESRAM in the rate proceeding where the RESRAM was
established or in any subsequent related periodic adjustment proceeding or
prudence review wants the responding party to whom the prior data requests were
submitted to supplement or update that responding party's prior responses for
possible use in a subsequent related periodic adjustment proceeding, prudence
review, or general rate case to modify, continue, or discontinue the same
RESRAM, the party which previously submitted the data requests shall submit an
additional data request to the responding party to whom the data requests were
previously submitted which clearly identifies the particular data requests to
be supplemented or updated and the particular period to be covered by the
updated response. A responding party to a request to supplement or update shall
supplement or update a data request response from a related rate proceeding
where a RESRAM was established, reviewed for prudence, modified, continued, or
discontinued, if the responding party has learned or subsequently learns that
the data request response is in some material respect incomplete or incorrect.
24. Each rate proceeding where
commission establishment, continuation, modification, or discontinuation of a
RESRAM is the sole issue shall comprise a separate case. The same procedures
for handling confidential information shall apply, pursuant to
4 CSR
240-2.135, as in the immediately preceding RESRAM case
for the particular electric utility, unless otherwise directed by the
commission on its own motion or as requested by a party and directed by the
commission.
25. In addressing
certain discovery matters and the provision of certain information by electric
utilities, this rule is not intended to restrict the discovery rights of any
party.
26. Prudence reviews
respecting a RESRAM. A prudence review of the costs subject to the RESRAM shall
be conducted no less frequently than at intervals established in the rate
proceeding in which the RESRAM is established.
A. All amounts ordered refunded by the
commission shall include interest at the electric utility's short-term
borrowing rate. The interest shall be calculated on a monthly basis for each
month the RESRAM rate is in effect, equal to the weighted average interest rate
paid by the electric utility on short-term debt for that calendar month. This
rate shall then be applied to a simple average of the same month's beginning
and ending cumulative RESRAM over-collection or under-collection balance. Each
month's accumulated interest shall be included in the RESRAM over-collection or
under-collection balances on an ongoing basis.
B. The staff shall submit a recommendation
regarding its examination and analysis to the commission not later than one
hundred eighty (180) days after the staff initiates its prudence audit. The
staff shall file notice within ten (10) days of starting its prudence audit.
The commission shall issue an order not later than two hundred ten (210) days
after the staff commences its prudence audit if no party to the proceeding in
which the prudence audit is occurring files, within one hundred ninety (190)
days of the staff's commencement of its prudence audit, a request for a
hearing.
(I) If the staff, OPC, or other party
auditing the RESRAM believes that insufficient information has been supplied to
make a recommendation regarding the prudence of the electric utility's RESRAM,
it may utilize discovery to obtain the information it seeks. If the electric
utility does not timely supply the information, the party asserting the failure
to provide the required information shall timely file a motion to compel with
the commission. While the commission is considering the motion to compel, the
processing time line shall be suspended. If the commission then issues an order
requiring the information to be provided, the time necessary for the
information to be provided shall further extend the processing time line. For
good cause shown the commission may further suspend this time line.
(II) If the time line is extended due to an
electric utility's failure to timely provide sufficient responses to discovery
and a refund is due to the customers, the electric utility shall refund all
imprudently incurred costs plus interest at the electric utility's short-term
borrowing rate. The interest shall be calculated on a monthly basis in the same
manner as described in subparagraph (A)26.A. of this
section.
(B) RESRAM filing requirements for less than
two percent (2%) actual increase in utility revenue requirements.
1. When an electric utility files proposed
rate schedules pursuant to sections
393.1020 and
393.1030,
RSMo, and the provisions of this rule, the commission staff shall conduct an
examination of the proposed RESRAM.
2. The staff of the commission shall examine
and analyze the information submitted by the electric utility to determine if
the proposed RESRAM is in accordance with provisions of this rule and the
statutes governing the RES and shall submit a report regarding its examination
to the commission not later than sixty (60) days after the electric utility
files its proposed rate schedules.
3. The commission may hold a hearing on the
proposed rate schedules and shall issue an order to become effective not later
than one hundred twenty (120) days after the electric utility files the
proposed rate schedules.
4. If the
commission finds that the proposed rate schedules or substitute filed rate
schedules comply with the applicable requirements, the commission shall enter
an order authorizing the electric utility to utilize said RESRAM rate schedules
with an appropriate effective date, as determined by the commission.
5. At the time an electric utility files
proposed rate schedules with the commission seeking to establish, modify, or
reconcile a RESRAM, it shall submit its supporting documentation regarding the
calculation of the proposed RESRAM and shall serve the OPC with a copy of its
proposed rate schedules and its supporting documentation. The utility's
supporting documentation shall include work-papers showing the calculation of
the proposed RESRAM and shall include, at a minimum, the following information:
A. A complete explanation of all of the
costs, both capital and expense, incurred for RES compliance that the electric
utility is proposing be included in rates and the specific account used for
each item;
B. The state, federal,
and local income or excise tax rates used in calculating the proposed RESRAM,
and an explanation of the source of and the basis for using those tax
rates;
C. The regulatory capital
structure used in calculating the proposed RESRAM, and an explanation of the
source of and the basis for using the capital structure;
D. The cost rates for debt and preferred
stock used in calculating the proposed RESRAM, and an explanation of the source
of and the basis for using those rates;
E. The cost of common equity used in
calculating the proposed RESRAM, and an explanation of the source of and the
basis for that equity cost;
F. The
depreciation rates used in calculating the proposed RESRAM, and an explanation
of the source of and the basis for using those depreciation rates;
G. The rate base used in calculating the
proposed RESRAM, including an updated depreciation reserve total incorporating
the impact of all RES plant investments previously reflected in general rate
proceedings or RESRAM application proceedings initiated following enactment of
the RES rules;
H. The applicable
customer class billing methodology used in calculating the proposed RESRAM, and
an explanation of the source of and basis for using that methodology;
I. An explanation of how the proposed RESRAM
is allocated among affected customer classes, if applicable; and
J. For purchase of electrical energy from
eligible renewable energy resources bundled with the associated RECs or for the
purchase of unbundled RECs, the cost of the purchases, and an explanation of
the source of the energy or RECs and the basis for making that specific
purchase, including an explanation of the request for proposal (RFP) process,
or the reason(s) for not using a RFP process, used to establish which entity
provided the energy or RECs associated with the RESRAM.
(C) RESRAM for equal to or greater
than two percent (2%) actual increase in utility revenue requirements.
1. If an electric utility files an
application and rate schedules to establish, continue, modify, or discontinue a
RESRAM outside of a general rate proceeding, the staff shall examine and
analyze the information filed in accordance with this section and additional
information obtained through discovery, if any, to determine if the proposed
RESRAM is in accordance with provisions of this rule and the statutes governing
the RES. The commission shall establish a procedural schedule providing for an
evidentiary hearing and commission report and order regarding the electric
utility's filing. The staff shall submit a report regarding its examination and
analysis to the commission not later than seventy-five (75) days after the
electric utility files its application and rate schedules to establish a
RESRAM. An individual or entity granted intervention by the commission may file
comments not later than seventy-five (75) days after the electric utility files
its application and rate schedules to establish a RESRAM. The electric utility
shall have no less than fifteen (15) days from the filing of the staff's report
and any intervener's comments to file a reply. The commission shall have no
less than thirty (30) days from the filing of the electric utility's reply to
hold a hearing and issue a report and order approving the electric utility's
rate schedules subject to, or not subject to, conditions rejecting the electric
utility's rate schedules, or rejecting the electric utility's rate schedules
and authorizing the electric utility to file substitute rate schedules subject
to, or not subject to, conditions.
2. When an electric utility files an application and rate
schedules as described in this subsection, the electric utility shall file at
the same time supporting direct testimony and the following supporting
information as part of, or in addition to, its supporting direct testimony:
A. Proposed RESRAM rate schedules;
B. A general description of the design and
intended operation of the proposed RESRAM;
C. A complete description of how the proposed
RESRAM is compatible with the requirement for prudence reviews;
D. A complete explanation of all the costs
that shall be considered for recovery under the proposed RESRAM and the
specific account used for each cost item on the electric utility's books and
records;
E. A complete explanation
of all of the costs, both capital and expense, incurred for RES compliance that
the electric utility is proposing be included in rates and the specific account
used for each cost item on the electric utility's books and records;
F. A complete explanation of all of the
costs, both capital and expense, incurred for RES compliance that the electric
utility is proposing be included in base rates and the specific account used
for each cost item on the electric utility's books and records;
G. A complete explanation of all the revenues
that shall be considered in the determination of the amount eligible for
recovery under the proposed RESRAM and the specific account where each such
revenue item is recorded on the electric utility's books and records;
H. A complete explanation of any feature
designed into the proposed RESRAM or any existing electric utility policy,
procedure, or practice that can be relied upon to ensure that only prudent
costs shall be eligible for recovery under the proposed RESRAM;
I. For each of the major categories of costs,
that the electric utility seeks to recover through its proposed RESRAM, a
complete explanation of the specific rate class cost allocations and rate
design used to calculate the proposed RES compliance revenue requirement and
any subsequent RESRAM rate adjustments during the term of the proposed RESRAM;
and
J. Any additional information
that may have been ordered by the commission in a prior rate proceeding to be
provided.
3. When an
electric utility files rate schedules as described in this subsection, and
serves upon parties as provided in paragraph (A)20. of this section, the rate
schedules must be accompanied by supporting direct testimony, and at least the
following supporting information:
A. The
following information shall be included with the filing:
(I) For the period from which historical
costs are used to adjust the RESRAM rate:
(a)
REC costs differentiated by purchases, swaps, and loans;
(b) Net revenues from REC sales, swaps, and
loans;
(c) Extraordinary costs not
to be passed through, if any, due to such costs being an insured loss, or
subject to reduction due to litigation, or for any other reason;
(d) Base rate component of RES compliance
costs and revenues;
(e)
Identification of capital projects placed in service that were not anticipated
in the previous general rate proceeding; and
(f) Any additional requirements ordered by
the commission in the prior rate proceeding;
(II) The levels of RES compliance capital
costs and expenses in the base rate revenue requirement from the prior general
rate proceeding;
(III) The levels
of RES compliance capital cost in the base rate revenue requirement from the
prior general rate proceeding as adjusted for the proposed date of the periodic
adjustment;
(IV) The capital
structure as determined in the prior rate proceeding;
(V) The cost rates for the electric utility's
debt and preferred stock as determined in the prior rate proceeding;
(VI) The electric utility's cost of common
equity as determined in the prior rate proceeding;
(VII) The rate base used in calculating the
proposed RESRAM, including an updated depreciation reserve total incorporating
the impact of all RES plant investments previously reflected in general rate
proceedings or RESRAM application proceedings initiated following enactment of
the RES rules; and
(VIII)
Calculation of the proposed RESRAM collection rates; and
B. Workpapers supporting all items in
subparagraph (C)3.A. of this section shall be submitted to the manager of the
auditing department and served upon parties as provided in paragraph (A)20. in
this section. The workpapers may be submitted to the manager of the auditing
department through EFIS.
(D) Alternatively, an electric utility may
recover RES compliance costs without use of the RESRAM procedure through rates
established in a general rate proceeding. In the interim between general rate
proceedings the electric utility may defer the costs in a regulatory asset
account, and monthly calculate a carrying charge on the balance in that
regulatory asset account equal to its short-term cost of borrowing. All
questions pertaining to rate recovery of the RES compliance costs in a
subsequent general rate proceeding will be reserved to that proceeding,
including the prudence of the costs for which rate recovery is sought and the
period of time over which any costs allowed rate recovery will be amortized.
Any rate recovery granted to RES compliance costs under this alternative
approach will be fully subject to the rate limit set forth in section (5) of
this rule.
(7) Nothing in sections (5) and (6) of this rule shall relieve the electric utility from reviewing its initial or ongoing decisions related to adding renewable resource additions or affect the commission's ability to review the prudence of the electric utility's renewable resource additions.
(8) Annual RES Compliance Report and RES Compliance Plan. Each electric utility shall file a RES compliance report no later than April 15 to report on the status of both its compliance with the RES and its compliance plan as described in this section for the most recently completed calendar year. Each electric utility shall file an annual RES compliance plan with the commission. The plan shall be filed no later than April 15 of each year.
(A) Annual RES
Compliance Report.
1. The annual RES
compliance report shall provide the following information for the most recently
completed calendar year for the electric utility:
A. Total retail electric sales for the
utility, as defined by this rule;
B. Total jurisdictional revenue from the
total retail electric sales to Missouri customers as measured at the customers'
meters;
C. Total retail electric
sales supplied by renewable energy resources, as defined by section
393.1025(5),
RSMo, including the source of the
energy;
D. The number of RECs and
S-RECs created by electrical energy produced by renewable energy resources
owned by the electric utility. For the electrical energy produced by these
utility-owned renewable energy resources, the value of the energy created. For
the RECs and S-RECs, a calculated REC or S-REC value for each source and each
category of REC;
E. The number of
RECs acquired, sold, transferred, or retired by the utility during the calendar
year;
F. The source of all RECs
acquired during the calendar year;
G. The identification, by source and serial
number, or some other identifier sufficient to establish the vintage and source
of the REC, of any RECs that have been carried forward to a future calendar
year;
H. An explanation of how any
gains or losses from sale or purchase of RECs for the calendar year have been
accounted for in any rate adjustment mechanism that was in effect for the
electric utility;
I. For
acquisition of electrical energy and/or RECs from a renewable energy resource
that is not owned by the electric utility, except for systems owned by
customer-generators, the following information for each resource that has a
rated capacity of ten (10) kW or greater:
(I)
Facility name, location (city, state), and owner;
(II) That the energy was derived from an
eligible renewable energy technology and that the renewable attributes of the
energy have not been used to meet the requirements of any other local or state
mandate;
(III) The renewable energy
technology utilized at the facility;
(IV) The dates and amounts of all payments
from the electric utility to the owner of the facility; and
(V) All meter readings used for calculation
of the payments referenced in part (IV) of this paragraph;
J. For acquisition of electrical energy
and/or RECs from a customer generator-
(I)
Location (zip code);
(II) Name of
aggregated subaccount in which RECs are being tracked in;
(III) Interconnection date;
(IV) Annual estimated or measured generation;
and
(V) The start and end date of
any estimated or measured RECs being acquired;
K. The total number of customers that applied
and received a solar rebate in accordance with section (4) of this
rule;
L. The total number of
customers that were denied a solar rebate and the reason(s) for each
denial;
M. The amount expended by
the electric utility for solar rebates, including the price and terms of future
S-REC contracts associated with the facilities that qualified for the solar
rebates;
N. An affidavit
documenting the electric utility's compliance with the RES compliance plan as
described in this section during the calendar year;
O. If compliance was not achieved, an
explanation why the electric utility failed to meet the RES; and
P. A calculation of its actual calendar year
retail rate impact.
2.
On the same date that the electric utility files its annual RES compliance
report, the utility shall post an electronic copy of its annual RES compliance
report, excluding highly confidential or proprietary material, on its website
to facilitate public access and review.
3. On the same date that the electric utility
files its annual RES compliance report, the utility shall provide the
commission with separate electronic copies of its annual RES compliance report
including and excluding highly confidential and proprietary material. The
commission shall place the redacted electronic copies of each electric
utility's annual RES compliance reports on the commission's website in order to
facilitate public viewing, as appropriate.
(B) RES Compliance Plan.
1. The plan shall cover the current year and
the immediately following two (2) calendar years. The RES compliance plan shall
include, at a minimum-
A. A specific
description of the electric utility's planned actions to comply with the
RES;
B. A list of executed
contracts to purchase RECs (whether or not bundled with energy), including type
of renewable energy resource, expected amount of energy to be delivered, and
contract duration and terms;
C. The
projected total retail electric sales for each year;
D. Any differences, as a result of RES
compliance, from the utility's preferred resource plan as described in the most
recent electric utility resource plan filed with the commission in accordance
with 4 CSR 240-22, Electric Utility Resource Planning;
E. A detailed analysis providing information
necessary to verify that the RES compliance plan is the least cost, prudent
methodology to achieve compliance with the RES;
F. A calculation of the RES retail impact
limit calculated in accordance with section (5) of this rule. The calculation
should be accompanied by workpapers including all the relevant inputs used to
calculate the retail impact limits for the planning interval which is included
in the RES compliance plan. The electric utility may designate all or part of
those calculations as highly confidential, proprietary, or public as
appropriate under the commission's rules; and
G. Verification that the utility has met the
requirements for not causing undue adverse air, water, or land use impacts
pursuant to subsection 393.1030.4., RSMo, and the regulations of the
division.
(C)
Upon receipt of the electric utility's annual RES compliance report and RES
compliance plan, the commission shall establish a docket for the purpose of
receiving the report and plan. The commission shall issue a general notice of
the filing.
(D) The staff of the
commission shall examine each electric utility's annual RES compliance report
and RES compliance plan and file a report of its review with the commission
within forty-five (45) days of the filing of the annual RES compliance report
and RES compliance plan with the commission. The staff's report shall identify
any deficiencies in the electric utility's compliance with the RES.
(E) OPC and any interested persons or
entities may file comments based on their review of the electric utility's
annual RES compliance report and RES compliance plan within forty-five (45)
days of the electric utility's filing of its compliance report with the
commission.
(F) The commission may
direct the electric utility to provide additional information or to address any
concerns or deficiencies identified in the comments of staff or other
interested persons or entities.
(9) Penalties. An electric utility shall be subject to penalties of at least twice the average market value of RECs or S-RECs for the calendar year for failure to meet the targets of section 393.1030.1, RSMo, and section (2) of this rule.
(A) Any allegation of a failure to comply
with the RES shall be filed as a complaint under the statutes and regulations
governing complaints.
(B) An
electric utility shall be excused if it proves to the commission that failure
was due to events beyond its reasonable control that could not have been
reasonably mitigated or to the extent that the maximum average retail rate
impact increase, as determined in accordance with section (5) of this rule,
would be exceeded.
(C) Any penalty
payments assessed by the courts shall be remitted to the division. These
payments shall be utilized by the division for the following purposes:
1. Purchase RECs or S-RECs in sufficient
quantity to offset the shortfall of the utility to meet the RES portfolio
requirements; and
2. Payments in
excess of those required in paragraph (C)1. of this section shall be utilized
to provide funding for renewable energy and energy efficiency projects. These
projects shall be selected by the division in consultation with the
staff.
(D) Upon
determination by the commission that an electric utility has not complied with
the RES, penalty amounts shall be calculated by determining the electric
utility's shortfall relative to the RES portfolio requirements (total and
solar) for the calendar year. The penalty amount recommended by the commission
to the court of jurisdiction shall be twice the average market value during the
calendar year for RECs or S-RECs in sufficient quantity to make up the
utility's shortfall for RES total requirements or RES solar energy
requirements. The average market value for RECs or S-RECs for the calendar year
shall be based on RECs and S-RECs utilized for compliance with this rule. A
recommended average market value for the compliance period shall be calculated
by the staff. OPC and any interested persons or entities may file comments
based on their review of the staff's recommendation. The commission may issue
an order which establishes a further procedural schedule, or the commission may
determine the average market value as part of the complaint
proceeding.
(E) Any electric
utility that is subject to penalties as prescribed by this section shall not
seek recovery of the penalties through section (6) of this rule or any other
rate-making activity.
(10) Nothing in this rule shall preclude a complaint case from being filed, as provided by law, on the grounds that an electric utility is earning more than a fair return on equity, nor shall an electric utility be permitted to use the existence of its RESRAM as a defense to a complaint case based upon an allegation that it is earning more than a fair return on equity.
(11) Variances. Upon written application, and after notice and an opportunity for hearing, the commission may grant a variance from any provision of this rule for good cause shown.
(A) The granting of a
variance to one (1) electric utility which affects the required compliance with
a provision of this rule does not constitute a variance respecting, or
otherwise affect, the compliance required of any other electric
utility.
(B) The commission may not
grant a variance from this rule in total.
Electric Company
12 Months Ended ________________
Per Books
(IN THOUSANDS OF DOLLARS)
FINANCIAL SURVEILLANCE MONITORING REPORT
RATE BASE AND RATE OF RETURN
Electric Company
12 Months Ended ________________
Per Books
(IN THOUSANDS OF DOLLARS)
FINANCIAL SURVEILLANCE MONITORING REPORT
CAPITAL STRUCTURE AND RATE OF RETURN
Electric Company
Quarter Ended and 12 Months Ended ___________________
Per Books
(IN THOUSANDS OF DOLLARS)
FINANCIAL SURVEILLANCE MONITORING REPORT
OPERATING INCOME STATEMENT
Electric Company
12 Months Ended _________________
FINANCIAL SURVEILLANCE MONITORING REPORT
Missouri Jurisdictional Allocation Factors
Electric Company
Quarter Ended and 12 Months Ended _________________
Per Books
FINANCIAL SURVEILLANCE MONITORING REPORT
NOTES TO FINANCIAL SURVEILLANCE REPORT
Illustration - Attachment A
*Original authority: 386.040, RSMo 1939; 386.250, RSMo 1939, amended 1963, 1967, 1977, 1980, 1987, 1988, 1991, 1993, 1995, 1996; and 393.1030, RSMo 2007, amended 2008, 2010, 2013, 2018.
*Ruling by the Joint Committee on Administrative Rules. On July 1, 2010, the Joint Committee on Administrative Rules voted to disapprove subsection (2)(A) and paragraph (2)(B)2. of 4 CSR 240-20.100. Those portions contained provisions on geographic sourcing. The committee considered those portions which were disapproved to be held in abeyance and asked that they not be published.
Public Service Commission action. On January 26, 2011 , the Public Service Commission filed an order with the Administrative Rules Division of the Office of the Secretary of State withdrawing the geographic sourcing provisions found in subsection (2)(A) and paragraph (2)(B)2. of 4 CSR 240-20.100. This commission order renewed the request of the Public Service Commission submitted by letter with its final order of rulemaking on July 6, 2010, that subsection (2)(A) and paragraph (2)(B)2. not be published in the Code of State Regulations and that these portions of the rule not become effective. A copy of this order appeared in the April 1, 2011 , issue of the Missouri Register (36 MoReg 1002-1007).
Legislative action. On January 24, 2011, Senate Concurrent Resolution No. 1 regarding 4 CSR 240-20.100 was adopted by the Senate and was concurred in by the House of Representatives on February 1, 2011 . On February 16, 2011 , the governor sent a letter to the speaker of the Missouri House of Representatives and the president pro tem of the Missouri Senate serving as notice of his action on the resolution. This concurrent resolution upheld a ruling issued by the Joint Committee on Administrative Rules disapproving subsection (2)(A) and paragraph (2)(B)2. of 4 CSR 240-20.100. The concurrent resolution permanently disapproves and suspends the final order of rulemaking for the proposed amendment to the above stated subsection and paragraph. The concurrent resolution and the letter from the governor were published in the April 1, 2011 , issue of the Missouri Register (36 MoReg 1008-1011).
Disclaimer: These regulations may not be the most recent version. Missouri may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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