Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 4240 - Public Service Commission › Chapter 20 - Electric Utilities › Section 20 CSR 4240-20.091 - Electric Utility Environmental Cost Recovery Mechanisms

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule allows the establishment of an
				  Environmental Cost Recovery Mechanism, which allows periodic rate adjustments
				  to reflect net increases or decreases in an electric utility's prudently
				  incurred costs directly related to compliance with any federal, state, or local
				  environmental law, regulation, or rule.
(1) Definitions. As used in this rule, the
				following terms mean as follows:
(A) Electric
				utility means electrical corporation as defined in section
				386.020, RSMo,
				subject to commission regulation pursuant to Chapters 386 and 393,
				RSMo;
(B) Environmental Cost
				Recovery Mechanism (ECRM) means a mechanism established in a general rate
				proceeding that allows periodic rate adjustments, outside a general rate
				proceeding, to reflect the net increases or decreases in an electric utility's
				incurred environmental costs;
(C)
				Environmental costs means prudently incurred costs, both capital and expense,
				directly related to compliance with any federal, state, or local environmental
				law, regulation, or rule.
1. Environmental
				costs do not include fuel and purchased power costs as defined in
				4 CSR
				240-20.090(1)(B).
2. Prudently incurred costs do not include
				any increased costs resulting from negligent or wrongful acts or omissions by
				the utility;
(D) The
				environmental revenue requirement shall be comprised of the following:
1. All expensed environmental costs (other
				than taxes and depreciation associated with capital projects) that are included
				in the electric utility's revenue requirement in the general rate proceeding in
				which the ECRM is established; and
2. The costs (i.e., the return, taxes, and
				depreciation) of any major capital projects whose primary purpose is to permit
				the electric utility to comply with any federal, state, or local environmental
				law, regulation, or rule. Representative examples of such capital projects to
				be included (as of the date of adoption of this rule) are electrostatic
				precipitators, fabric filters, nitrous oxide emissions control equipment, and
				flue gas desulfurization equipment. 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 general rate proceeding in which
				the ECRM is established;
(E) General rate proceeding means a general
				rate increase proceeding or complaint proceeding before the commission in which
				all relevant factors that may affect the costs, or rates and charges, of the
				electric utility are considered by the commission;
(F) Rate class is a customer class as 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;
(G) Staff means the staff of the Public
				Service Commission; and
(H) True-up
				year means the twelve (12)-month period beginning on the first day of the first
				calendar month following the effective date of the commission order approving
				an ECRM unless the effective date is on the first day of the calendar month. If
				the effective date of the commission order approving a rate mechanism is on the
				first day of a calendar month, then the true-up year begins on the effective
				date of the commission order. The first annual true-up period shall end on the
				last day of the twelfth calendar month following the effective date of the
				commission order establishing the ECRM. Subsequent true-up years shall be the
				succeeding twelve (12)-month periods. If a general rate proceeding is concluded
				prior to the conclusion of a true-up year, the true-up year may be less than
				twelve (12) months. If the commission approves both a fuel adjustment clause
				mechanism and an ECRM for the electric utility, the true-up year will be the
				same for both.