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5853S.02C
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SENATE COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 1396
AN ACT
To repeal section 393.1640, RSMo, and to enact in
lieu thereof one new section relating to discounts by
electrical corporations.
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Section A. Section 393.1640, RSMo, is repealed and one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 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, and upon proper application
by an eligible customer prior to public announcement of a
growth project, a new or existing account meeting the
criteria in this subsection shall qualify for one of the
discounts set forth in subdivision (1) or (2) of this
subsection:
(1) When the new load is reasonably projected to be at
least three hundred kilowatts but not more than ten
megawatts and have a load factor of at least forty-five
percent, the discount shall equal thirty-five percent and
shall apply for five years, provided that if it is expected
as of the date the discount is to commence that a thirty-
five percent discount would produce revenues from the
applicant's total bill that would not exceed the electrical
corporation's variable cost to serve the applicant's account
or accounts that are to receive the discount, the discount
shall be determined so that the percentage discount, rounded
to the nearest one percent, is expected, as of the date the
discount percentage is determined, to provide revenues equal
to one hundred twenty percent of the electrical
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corporation's variable cost to serve the applicant's account
or accounts that are to receive the discount;
(2) When the new load is reasonably projected to be
more than ten megawatts but less than seventy-five megawatts
and have a load factor of at least fifty-five percent, the
discount percentage[, rounded to the nearest one percent,
shall be determined such that the applicant's total bill is
expected, as of the date the discount percentage is
determined, to provide revenues equal to one hundred twenty
percent of the electrical corporation's variable cost to
serve the applicant's account or accounts that are to
receive the discount. Such discount shall apply for ten
years] shall equal thirty-five percent and shall apply for
five years, provided that if it is expected as of the date
the discount is to commence that a thirty-five percent
discount would produce revenues from the applicant's total
bill that would not exceed the electrical corporation's
variable cost to serve the applicant's account or accounts
that are to receive the discount, the discount shall be
determined so that the percentage discount, rounded to the
nearest one percent, is expected, as of the date the
discount percentage is determined, to provide revenues
sufficient to recover the electrical corporation's variable
cost to serve the applicant's account or accounts that are
to receive the discount.
[For the purposes of this section, the variable cost to
serve new load for purposes of establishing a discount under
this section shall be determined using (a) the energy and
capacity market prices that underlie the net base energy
costs reflected in the revenue requirement from the
electrical corporation's most recent general rate
proceeding; (b) any operations and maintenance expenses that
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vary with respect to the total number of customers or load
served by the electrical corporation, excluding operations
and maintenance expenses associated with generating
electricity; and (c) any other incremental costs to serve
the customer.]
To obtain one of the discounts set forth in subdivision (1)
or (2) of this subsection, the customer's load shall be
incremental, net of any offsetting load reductions due to
the termination of other accounts of the customer or an
affiliate of the customer within twelve months prior to the
commencement of service to the new load, the customer shall
receive an economic development incentive from the local,
regional, state, or federal government, or from an agency or
program of any such government, in conjunction with the
incremental load, and the customer shall meet the criteria
set forth in the electrical corporation's economic
development rider tariff sheet, as approved by the
commission, that are not inconsistent with the provisions of
this subsection. An applicant shall not be eligible for a
discount authorized by this subsection for any new or
expanded facility that is determined by an electrical
corporation to be a nonqualifying facility as defined in
this section.
Unless otherwise provided for by the electrical
corporation's tariff, the applicable discount shall be a
percentage applied to all base-rate components of the bill.
The discount shall be applied to such incremental load from
the date when the meter has been permanently set until the
date that such incremental load no longer meets the criteria
required to qualify for the discount, as determined under
the provisions of subsection 2 of this section. An eligible
customer shall also receive a ten percent discount of all
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base-rate components of the bill applied to such incremental
load for an additional one-year period beyond the period
during which the applicable discount under subdivision (1)
or (2) of this subsection applies if the electrical
corporation determines that the customer is taking service
from an under-utilized circuit. The electrical corporation
may include in its tariff additional or alternative terms
and conditions to a customer's utilization of the discount,
subject to approval of such terms and conditions by the
commission. The customer, on forms supplied by the
electrical corporation, shall apply for the applicable
discount provided for by this subsection at least ninety
days prior to the date the customer requests that the
incremental demand receive one of the discounts provided for
by this subsection and shall enter into a written agreement
with the electrical corporation reflecting the discount
percentages and other pertinent details. If the incremental
demand is not separately metered, the electrical
corporation's determination of the incremental demand shall
control. The electrical corporation shall verify the
customer's incremental demand annually to determine
continued qualification for the applicable discount.
[Notwithstanding the foregoing provisions of this
subsection, the cents-per-kilowatt-hour realization
resulting from application of any discounted rates as
calculated shall be higher than the electrical corporation's
variable cost to serve such incremental demand and the
applicable discounted rate also shall make a positive
contribution to fixed costs associated with service to such
incremental demand. If in a subsequent general rate
proceeding the commission determines that application of a
discounted rate is not adequate to cover the electrical
corporation's variable cost to serve the accounts in
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question and provide a positive contribution to fixed costs
then the commission shall increase the rate for those
accounts prospectively to the extent necessary to do so.]
2. In each general rate proceeding concluded after
August 28, 2022, the difference in revenues generated by
applying the discounted rates provided for by this section
and the revenues that would have been generated without such
discounts shall not be imputed into the electrical
corporation's revenue requirement. Instead, such revenue
requirement shall be set using the revenues generated by
such discounted rates and the impact of the discounts
provided for by this section shall be allocated to all the
electrical corporation's customer classes, including the
classes with customers that qualify for discounts under this
section through the application of a uniform percentage
adjustment to the revenue requirement responsibility of all
customer classes. To qualify for the discounted rates
provided for in this section, customers shall meet the
applicable criteria within twenty-four months of initially
receiving discounts based on metering data for calendar
months thirteen through twenty-four and annually
thereafter. If such data indicates that the customer did
not meet both of the three hundred kilowatt and forty-five
percent load factor requirements for any applicable twelve-
month period, it shall thereafter no longer qualify for a
discounted rate. For customers receiving service under
subdivision (2) of subsection 1 of this section, if after
the fourth year, the demand has not exceeded ten thousand
kilowatts during any twelve-month period, the customer's
qualification shall revert to subdivision (1) of subsection
1 of this section. The provisions of this section do not
supersede or limit the ability of an electrical corporation
to continue to utilize economic development or retention
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tariffs previously approved by the commission that are in
effect on August 28, 2022. If, however, a customer is
receiving any economic development or retention-related
discounts as of the date it would otherwise qualify for a
discount provided for by this section, the customer shall
agree to relinquish the prior discount concurrently with the
date it begins to receive a discount under this section;
otherwise, the customer shall not be eligible to receive any
discount under this section. Customer demand existing at
the time the customer begins to receive discounted rates
under this section shall not constitute incremental demand.
The discounted rates provided for by this section apply only
to base-rate components, with the charges or credits arising
from any rate adjustment mechanism authorized by law to be
applied to customers qualifying for discounted rates under
this section in the same manner as such rate adjustments
would apply in the absence of this section.
3. For purposes of this section, the following terms
shall mean:
(1) "Electrical corporation" [shall mean], the same as
defined in section 386.020, but shall not include an
electrical corporation as described in subsection 2 of
section 393.110;
(2) "Nonqualifying facility", one or more buildings
that are constructed, reconstructed, enlarged, remodeled, or
leased to house a group of networked computer servers in
this state to centralize the storage, management, and
dissemination of data and information pertaining to a
particular business, taxonomy, or body of knowledge and such
buildings are connected to each other by fiber and
associated equipment required for operating a fiber
transmission network between the buildings and internet
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points for the purpose of providing redundancy and
resiliency for the services provided in each building.
4. An electrical corporation's authority to offer the
discounts provided for by this section shall terminate on
the date that such electrical corporation's authority to
make the deferrals required by subsection 2 of section
393.1400 expires.