SALES TAX EXEMPTIONS

This act authorizes a sales tax exemption for purchases by a Missouri company, as defined in the act, of solar photovoltaic energy systems and all purchases of supplies used directly to make improvements to such systems, provided that such systems allow for energy storage, include advanced or smart meter inverter capacity, or allow for utility scale projects greater than twenty megawatts. (Section 144.030)

This provision is substantially similar to SB 881 (2022) and HB 2658 (2020).

NET METERING

The act establishes the Task Force on Distributed Energy Resources and Net Metering, to conduct hearings and research information related to net metering as set forth in the act. The Task Force shall compile a report for the General Assembly by June 30, 2023. The Task Force shall dissolve on June 30, 2023, or when the Task Force concludes its work, whichever is sooner. (Section 386.885)

The act modifies the definitions of "department", which is changed from the Department of Economic Development to the Department of Natural Resources, and "retail electric supplier", which now includes municipally-owned utilities.

The sale of qualified electric energy units to any customer-generator shall be subject to provisions of law related to consumer protection. (Section 386.890)

These provisions are substantially similar to SCS/SB 763 (2022) and similar to HB 1852 (2022), SCS/SB 178 (2021), HB 539 (2021), SB 1065 (2020), and HB 2608 (2020).

ACCOUNTING PRACTICES OF UTILITIES

Under this act, electrical corporations, gas corporations, sewer corporations, and water corporations shall defer to a regulatory asset or liability account any difference in state or local property tax expenses actually incurred, and those on which the revenue requirement used to set rates in the corporation's most recently completed general rate proceeding was based. The regulatory asset or liability account balances shall be included in the revenue requirement used to set rates through an amortization over a reasonable period of time in such corporation's subsequent general rate proceedings. Such expenditures deferred under this provision are subject to Commission prudence review in the next general rate proceeding after deferral. (Section 393.1275)

This provision is similar to a provision contained in SCS/SB 756 (2022) and HCS/HB 1734 (2022).

FINANCING ORDERS

The act allows the Public Service Commission to directly contract counsel, financial advisors, or other consultants as necessary to carry out the Commission's duties related to financing orders and the Commission shall not be subject to provisions of law relating to competitive bidding for state entities. (Section 393.1700)

Current provisions of law regarding utility financing orders state that an electrical corporation may be permitted to retain coal-fired generating assets in rate base and recover costs associated with operating the coal-fired assets that remain in service to provide greater certainty that generating capacity will be available to provide essential service to customers, including during extreme weather events, and the Public Service Commission shall not disallow any portion of such cost recovery on the basis that such coal-fired generating assets operate at a low capacity factor, or are off-line and providing capacity only, during normal operating conditions.

Under this act, the electrical corporation shall be permitted to retain coal-fired generating assets in rate base and recover prudently incurred costs associated with such assets, including at a low capacity factor, or that are offline and providing capacity only in order to remain in service to customers for reliability during events such as extreme weather. (Section 393.1715)

This provision is identical to a provision contained in SCS/SB 756 (2022) and HCS/HB 1734 (2022).

SUNSHINE LAW

This act adds individually identifiable customer usage and billing records for customers of a municipally owned utility, unless the records are requested by the customer or authorized for release by the customer, to the list of records that may be closed under the Sunshine Law. A municipally owned utility shall make available to the public the customer's name, billing address, location of service, and dates of service provided for any commercial service account. (Section 610.021)

This provision is identical to SB 827 (2022), a provision contained in the truly agreed SCS/HCS/HB 362 (2021), SB 214 (2021), SCS/HB 657 (2021), SS#2/SCS/HCS/HB 1854 (2020), HB 1953 (2020), HCS/HB 1098 (2019), and SCS/SB 453 (2019), and is similar to SB 828 (2020).

JAMIE ANDREWS