Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 4240 - Public Service Commission › Chapter 3 - Filing and Reporting Requirements › Section 20 CSR 4240-3.162 - Electric Utility Environmental Cost Recovery Mechanisms Filing and Submission Requirements

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule implements the provisions of
				  Senate Bill 179, codified at section
				  386.266,
				  RSMo Supp. 2008, which permits the commission to authorize the inclusion of an
				  environmental cost recovery mechanism in utility rates.
(1) As used in this rule, the following terms
				mean:
(A) EFIS means the electronic filing
				and information system of the commission;
(B) Electric utility means electrical
				corporation as defined in section
				386.020, RSMo,
				subject to commission regulation pursuant to Chapters 386 and 393,
				RSMo;
(C) Environmental compliance
				plan means a twenty (20)-year forecast of environmental compliance investments
				and a detailed four (4)-year plan for complying with federal, state, and local
				environmental laws, regulations, and rules. The four (4)-year plan will include
				plans to use emission allowances for compliance, plans for emission allowance
				transactions, and, on a generation unit basis, plans for investments in
				emission control equipment. The environmental compliance plan shall be
				consistent with the implementation plan of the most recent resource plan filing
				except as otherwise explained by the electric utility. Approval of an
				Environmental Cost Recovery Mechanism (ECRM) does not imply approval or
				predetermination of prudence of the environmental compliance plan;
(D) 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 environmental revenue
				requirement, plus additional environmental costs incurred since the prior
				general rate proceeding;
(E)
				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
				240-3.161(1)(A).
2. Prudently incurred costs do not include
				any increased costs resulting from negligent or wrongful acts or omissions by
				the utility;
(F) 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 precip-itators, fabric
				filters, nitrous oxide emissions control equipment, and flue gas
				desulfuriza-tion 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;
(G)
				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; and
(H) Rate class is 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.