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SECOND REGULAR SESSION
HOUSE BILL NO. 1731
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE WELLENKAMP .
4557H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 393, RSMo, by adding thereto one new section relating to rebates by
electrical corporations.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 393, RSMo, is amended by adding thereto one new section, to be
2 known as section 393.2500, to read as follows:
393.2500. 1. As used in this section, the following terms shall mean:
2 (1) "Commission", the Missouri public service commission;
3 (2) "Customer -generator", the same as defined in section 386.890;
4 (3) "Electrical corporation", the same as defined in section 386.020;
5 (4) "Energy storage system", commer cially available technology that is capable
6 of absorbing energy and storing it for a period of time for use at a later time including,
7 but not limited to, electr ochemical, thermal, and electr omechanical technologies, and
8 may be interconn ected behind the customer's meter or inter connected behind its own
9 meter;
10 (5) "Smart inverter", a device that converts dir ect curren t fr om solar panels into
11 alternating curr ent and meets all applicable safety , performance, intercon nection, and
12 r eliability standards established by the National Electrical Code, the National Electrical
13 Safety Code, the Institute of Electrical and Electr onics Engineers, Underwriters
14 Laboratories, the Federal Energy Regulatory Commission, and any local governing
15 authorities.
16 2. Within ninety days after August 28, 2026, an electrical corporation shall file
17 an application with the commission req uesting appr oval of the corporation's tariff to
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
18 pr ovide a r ebate to any customer -generator installing any energy storage system and, if
19 applicable, a new solar electric system at the customer -generator's pr emises for the
20 customer -generator's own use. The r ebate shall be as follows:
21 (1) T wo dollars per watt for systems becoming operational on or befor e June 30,
22 2027;
23 (2) One dollar and fifty cents per watt for systems becoming operational between
24 July 1, 2027, and June 30, 2028;
25 (3) One dollar per watt for systems becoming operational between July 1, 2027,
26 and June 30, 2029;
27 (4) Fifty cents per watt for systems becoming operational between July 1, 2028,
28 and June 30, 2030;
29 (5) Fifty cents per watt for systems becoming operational between July 1, 2029,
30 and June 30, 2031; or
31 (6) T wenty-five cents per watt for systems becoming operational between July 1,
32 2030, and June 30, 2032.
33
34 The rebate amounts under this subsection shall be issued until such funds expir e or
35 exceed the allotted amounts. An electrical corporation may , thr ough its tariffs, requi re
36 applications for reba tes to be submitted by customer -generators up to one hundr ed and
37 eighty days prior to June 30, 2027.
38 3. The commission shall rev iew the application under subsection 2 of this section
39 and make modifications, if necessary , that ar e consistent with the commission's
40 authority under chapter 386. No later than one hundred and eighty days after the
41 electrical corporation files the application under subsection 2 of this section, the
42 commission shall hold a hearing and issue an order appr oving, or appr oving with
43 modifications, the tariff.
44 4. T o be eligible for a reb ate under this section, a customer -generator shall:
45 (1) Have a smart inverter installed at the customer's pr emises that is
46 inter connected to distribution facilities owned or operated by an electrical corporation;
47 (2) Install an energy storage system;
48 (3) Connect an energy storage system to a new or existing solar electric system
49 sited on the customer -generator's pr emises that is confirmed by the electrical
50 corporation to have become operational and in compliance with the prov isions of
51 section 386.890; and
52 (4) T ransfer to the electrical corporation all rights, titles, and intere st in and to
53 the r enewable energy credits associated with the solar electric system and energy
54 storage system that qualified the customer -generator for the rebate for a period of ten
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55 years fr om the date the electrical corporation confirmed that the energy storage system
56 was installed and operational.
57 5. An electrical corporation's obligation to make r ebate payments under this
58 section shall not exceed the following limitations:
59 (1) As of August 28, 2026, an electrical corporation with one million or mor e
60 customers in the state shall not be obligated to pay reb ates in any calendar year fr om
61 2026 thr ough 2032 in an amount exceeding five million six hundr ed thousand dollars or
62 in an aggr egate amount exceeding twenty-eight million dollars;
63 (2) As of August 28, 2026, an electrical corporation with less than one million but
64 mor e than two hundred thousand customers in the state shall not be obligated to pay
65 r ebates in any calendar year fr om 2026 thr ough 2032 in an amount exceeding one
66 million six hundre d thousand dollars or in an aggr egate amount exceeding eight million
67 dollars; and
68 (3) As of August 28, 2026, an electrical corporation with two hundr ed thousand
69 or less customers in the state shall not be obligated to pay reba tes in any calendar year
70 fr om 2026 thr ough 2032 in an amount exceeding one million four hundr ed thousand
71 dollars or in an aggr egate amount exceeding seven million dollars.
72 6. After the issuance of the rebate under this section, an electrical corporation
73 shall be permitted to r ecover the cost of all reba te payments it has made thr ough either
74 base rates or a rate adjustment mechanism under section 393.1030 and shall also be
75 permitted to defer and amortize the reco very of such costs, including interes t at the
76 electrical corporation's short-term borrow ing rate, thr ough either base rates or a
77 sur charge over a period of the electrical corporation's choice, not to exceed five years,
78 pr ovided that if reco very of such costs in such manner and over such a time period
79 would cause the electrical corporation to exceed the one percen t maximum average
80 r etail rate incr ease limitation r equir ed by subdivision (1) of subsection 2 of section
81 393.1030. The re covery of such costs that would exceed the one per cent maximum
82 average ret ail rate incre ase limitation shall be deferre d by the electrical corporation to a
83 r egulatory asset to which carrying costs at the electrical corporation's weighted average
84 cost of capital shall be added and r ecovered thr ough base rates or thr ough a rate
85 adjustment mechanism under section 393.1030 as soon as practicable.
86 7. The commission shall pro mulgate rules to implement the pr ovisions of this
87 section. Any rule or portion of a rule, as that term is defined in section 536.010, that is
88 cr eated under the authority delegated in this section shall become effective only if it
89 complies with and is subject to all of the pr ovisions of chapter 536 and, if applicable,
90 section 536.028. This section and chapter 536 are nonseverable and if any of the powers
91 vested with the general assembly pursuant to chapter 536 to r eview , to delay the
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92 effective date, or to disappr ove and annul a rule are subsequently held unconstitutional,
93 then the grant of rulemaking authority and any rule pro posed or adopted after August
94 28, 2026, shall be invalid and void.
✔
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