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SECOND REGULAR SESSION
HOUSE COMMITTEE SUBSTITUTE FOR
HOUSE BILL NO. 2248
103RD GENERAL ASSEMBL Y
5923H.03C JOSEPH ENGLER, Chief Clerk
AN ACT
T o repeal section 393.1640, RSMo, and to enact in lieu thereof one new section relating to
utility growth projects.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 393.1640, RSMo, is repealed and one new section enacted in lieu
2 thereof, to be known as section 393.1640, to read as follows:
393.1640. 1. Subject to the limitations provided for in subsection 2 of this section,
2 and upon proper application by an eligible customer prior to public announcement of a
3 growth project, a new or existing account meeting the criteria in this subsection shall qualify
4 for one of the discounts set forth in subdivision (1) or (2) of this subsection:
5 (1) When the new load is reasonably projected to be at least three hundred kilowatts
6 but not more than ten megawatts and have a load factor of at least forty-five percent, the
7 discount shall equal thirty-five percent and shall apply for five years, provided that if it is
8 expected as of the date the discount is to commence that a thirty-five percent discount would
9 produce revenues from the applicant's total bill that would not exceed the electrical
10 corporation's variable cost to serve the applicant's account or accounts that are to receive the
11 discount, the discount shall be determined so that the percentage discount, rounded to the
12 nearest one percent, is expected, as of the date the discount percentage is determined, to
13 provide revenues [ equal to one hundred twenty percent of ] that exceed the electrical
14 corporation's variable cost to serve the applicant's account or accounts that are to receive the
15 discount;
16 (2) When the new load is reasonably projected to be more than ten megawatts but
17 less than seventy-five megawatts and have a load factor of at least fifty-five percent, the
18 discount percentage[ , rounded to the nearest one percent, shall be determined such that the
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.
19 applicant's total bill is expected, as of the date the discount percentage is determined, to
20 provide revenues equal to one hundred twenty percent of the electrical corporation's variable
21 cost to serve the applicant's account or accounts that are to receive the discount. Such
22 discount shall apply for ten years ] shall equal thirty-five percen t and shall apply for five
23 years, pro vided that if it is expected as of the date the discount is to commence that a
24 thirty-five percen t discount would pro duce r evenues fr om the applicant's total bill that
25 would not exceed the electrical corporation's variable cost to serve the applicant's
26 account or accounts that ar e to receive the discount, the discount shall be determined so
27 that the percen tage discount, roun ded to the near est one per cent, is expected, as of the
28 date the discount per centage is determined, to pro vide reve nues that exceed the
29 electrical corporation's variable cost to serve the applicant's account or accounts that
30 ar e to receive the discount .
31
32 [For the purposes of this section, the variable cost to serve new load for purposes of
33 establishing a discount under this section shall be determined using (a) the ener gy and
34 capacity market prices that underlie the net base ener gy costs reflected in the revenue
35 requirement from the electrical corporation's most recent general rate proceeding; (b) any
36 operations and maintenance expenses that vary with respect to the total number of customers
37 or load served by the electrical corporation, excluding operations and maintenance expenses
38 associated with generating electricity; and (c) any other incremental costs to serve the
39 customer .]
40
41 T o obtain one of the discounts set forth in subdivision (1) or (2) of this subsection, the
42 customer's load shall be incremental, net of any of fsetting load reductions due to the
43 termination of other accounts of the customer or an af filiate of the customer within twelve
44 months prior to the commencement of service to the new load, the customer shall receive an
45 economic development incentive from the local, regional, state, or federal government, or
46 from an agency or program of any such government, in conjunction with the incremental
47 load, and the customer shall meet the criteria set forth in the electrical corporation's economic
48 development rider tariff sheet, as approved by the commission, that are not inconsistent with
49 the provisions of this subsection. An applicant shall not be eligible for a discount
50 authorized by this subsection for any new or expanded facility that is determined by an
51 electrical corporation to be a nonqualifying facility as defined in this section.
52
53 Unless otherwise provided for by the electrical corporation's tariff , the applicable discount
54 shall be a percentage applied to all base-rate components of the bill. The discount shall be
55 applied to such incremental load from the date when the meter has been permanently set until
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56 the date that such incremental load no longer meets the criteria required to qualify for the
57 discount, as determined under the provisions of subsection 2 of this section. An eligible
58 customer shall also receive a ten percent discount of all base-rate components of the bill
59 applied to such incremental load for an additional one-year period beyond the period during
60 which the applicable discount under subdivision (1) or (2) of this subsection applies if the
61 electrical corporation determines that the customer is taking service from an under- utilized
62 circuit. The electrical corporation may include in its tarif f additional or alternative terms and
63 conditions to a customer's utilization of the discount, subject to approval of such terms and
64 conditions by the commission. The customer , on forms supplied by the electrical corporation,
65 shall apply for the applicable discount provided for by this subsection at least ninety days
66 prior to the date the customer requests that the incremental demand receive one of the
67 discounts provided for by this subsection and shall enter into a written agreement with the
68 electrical corporation reflecting the discount percentages and other pertinent details. If the
69 incremental demand is not separately metered, the electrical corporation's determination of
70 the incremental demand shall control. The electrical corporation shall verify the customer's
71 incremental demand annually to determine continued qualification for the applicable
72 discount. Notwithstanding the foregoing provisions of this subsection, the cents-per -kilowatt-
73 hour realization resulting from application of any discounted rates as calculated shall be
74 higher than the electrical corporation's variable cost to serve such incremental demand and the
75 applicable discounted rate also shall make a positive contribution to fixed costs associated
76 with service to such incremental demand. If in a subsequent general rate proceeding the
77 commission determines that application of a discounted rate is not adequate to cover the
78 electrical corporation's variable cost to serve the accounts in question and provide a positive
79 contribution to fixed costs then the commission shall increase the rate for those accounts
80 prospectively to the extent necessary to do so.
81 2. In each general rate proceeding concluded after August 28, 2022, the dif ference in
82 revenues generated by applying the discounted rates provided for by this section and the
83 revenues that would have been generated without such discounts shall not be imputed into the
84 electrical corporation's revenue requirement. Instead, such revenue requirement shall be set
85 using the revenues generated by such discounted rates and the impact of the discounts
86 provided for by this section shall be allocated to all the electrical corporation's customer
87 classes, including the classes with customers that qualify for discounts under this section
88 through the application of a uniform percentage adjustment to the revenue requirement
89 responsibility of all customer classes. T o qualify for the discounted rates provided for in this
90 section, customers shall meet the applicable criteria within twenty-four months of initially
91 receiving discounts based on metering data for calendar months thirteen through twenty-four
92 and annually thereafter . If such data indicates that the customer did not meet both of the three
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93 hundred kilowatt and forty-five percent load factor requirements for any applicable twelve-
94 month period, it shall thereafter no longer qualify for a discounted rate. For customers
95 receiving service under subdivision (2) of subsection 1 of this section, if after the fourth year ,
96 the demand has not exceeded ten thousand kilowatts during any twelve-month period, the
97 customer's qualification shall revert to subdivision (1) of subsection 1 of this section. The
98 provisions of this section do not supersede or limit the ability of an electrical corporation to
99 continue to utilize economic development or retention tarif fs previously approved by the
100 commission that are in effect on August 28, 2022. If, however , a customer is receiving any
101 economic development or retention-related discounts as of the date it would otherwise qualify
102 for a discount provided for by this section, the customer shall agree to relinquish the prior
103 discount concurrently with the date it begins to receive a discount under this section;
104 otherwise, the customer shall not be eligible to receive any discount under this section.
105 Customer demand existing at the time the customer begins to receive discounted rates under
106 this section shall not constitute incremental demand. The discounted rates provided for by
107 this section apply only to base-rate components, with the char ges or credits arising from any
108 rate adjustment mechanism authorized by law to be applied to customers qualifying for
109 discounted rates under this section in the same manner as such rate adjustments would apply
110 in the absence of this section.
111 3. For purposes of this section, the following terms shall mean:
112 (1) "Electrical corporation" [ shall mean ] , the same as defined in section 386.020, but
113 shall not include an electrical corporation as described in subsection 2 of section 393.1 10 ;
114 (2) "Nonqualifying facility", one or mor e buildings that are constructed,
115 r econstructed, enlarged, rem odeled, or leased to house a gro up of networked computer
116 servers in this state to centralize the storage, management, and dissemination of data
117 and information pertaining to a particular business, taxonomy , or body of knowledge
118 and such buildings are connected to each other by fiber and associated equipment
119 r equir ed for operating a fiber transmission network between the buildings and internet
120 points for the purpose of pro viding r edundancy and res iliency for the services pr ovided
121 in each building .
122 4. An electrical corporation's authority to of fer the discounts provided for by this
123 section shall terminate on the date that such electrical corporation's authority to make the
124 deferrals required by subsection 2 of section 393.1400 expires.
✔
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