Documentation to be submitted--notice to be published--examinationof proposal--authorization by commission, when--pretax revenues,factors to be considered--revised rate schedule, filedwhen--rulemaking authority.
393.1015. 1. (1) At the time that a gas corporation files apetition with the commission seeking to* establish or change an ISRS, itshall submit proposed ISRS rate schedules and its supporting documentationregarding the calculation of the proposed ISRS with the petition, and shallserve the office of the public counsel with a copy of its petition, itsproposed rate schedules, and its supporting documentation.
(2) Upon the filing of a petition, and any associated rate schedules,seeking to establish or change an ISRS, the commission shall publish noticeof the filing.
2. (1) When a petition, along with any associated proposed rateschedules, is filed pursuant to the provisions of sections 393.1009 to393.1015, the commission shall conduct an examination of the proposed ISRS.
(2) The staff of the commission may examine information of the gascorporation to confirm that the underlying costs are in accordance with theprovisions of sections 393.1009 to 393.1015, and to confirm propercalculation of the proposed charge, and may submit a report regarding itsexamination to the commission not later than sixty days after the petitionis filed. No other revenue requirement or ratemaking issues may beexamined in consideration of the petition or associated proposed rateschedules filed pursuant to the provisions of sections 393.1009 to393.1015.
(3) The commission may hold a hearing on the petition and anyassociated rate schedules and shall issue an order to become effective notlater than one hundred twenty days after the petition is filed.
(4) If the commission finds that a petition complies with therequirements of sections 393.1009 to 393.1015, the commission shall enteran order authorizing the corporation to impose an ISRS that is sufficientto recover appropriate pretax revenue, as determined by the commissionpursuant to the provisions of sections 393.1009 to 393.1015.
3. A gas corporation may effectuate a change in its rate pursuant tothe provisions of this section no more often than two times every twelvemonths.
4. In determining the appropriate pretax revenue, the commissionshall consider only the following factors:
(1) The current state, federal, and local income tax or excise rates;
(2) The gas corporation's actual regulatory capital structure asdetermined during the most recent general rate proceeding of the gascorporation;
(3) The actual cost rates for the gas corporation's debt andpreferred stock as determined during the most recent general rateproceeding of the gas corporation;
(4) The gas corporation's cost of common equity as determined duringthe most recent general rate proceeding of the gas corporation;
(5) The current property tax rate or rates applicable to the eligibleinfrastructure system replacements;
(6) The current depreciation rates applicable to the eligibleinfrastructure system replacements; and
(7) In the event information pursuant to subdivisions (2), (3), and(4) of this subsection is unavailable and the commission is not providedwith such information on an agreed-upon basis, the commission shall referto the testimony submitted during the most recent general rate proceedingof the gas corporation and use, in lieu of any such unavailableinformation, the recommended capital structure, recommended cost rates fordebt and preferred stock, and recommended cost of common equity that wouldproduce the average weighted cost of capital based upon the variousrecommendations contained in such testimony.
5. (1) The monthly ISRS charge may be calculated based on areasonable estimate of billing units in the period in which the charge willbe in effect, which shall be conclusively established by dividing theappropriate pretax revenues by the customer numbers reported by the gascorporation in the annual report it most recently filed with the commissionpursuant to subdivision (6) of section 393.140, and then further dividingthis quotient by twelve. Provided, however, that the monthly ISRS may varyaccording to customer class and may be calculated based on customer numbersas determined during the most recent general rate proceeding of the gascorporation so long as the monthly ISRS for each customer class maintains aproportional relationship equivalent to the proportional relationship ofthe monthly customer charge for each customer class.
(2) At the end of each twelve-month calendar period the ISRS is ineffect, the gas corporation shall reconcile the differences between therevenues resulting from an ISRS and the appropriate pretax revenues asfound by the commission for that period and shall submit the reconciliationand a proposed ISRS adjustment to the commission for approval to recover orrefund the difference, as appropriate, through adjustments of an ISRScharge.
6. (1) A gas corporation that has implemented an ISRS pursuant tothe provisions of sections 393.1009 to 393.1015 shall file revised rateschedules to reset the ISRS to zero when new base rates and charges becomeeffective for the gas corporation following a commission order establishingcustomer rates in a general rate proceeding that incorporates in theutility's base rates subject to subsections 8 and 9 of this sectioneligible costs previously reflected in an ISRS.
(2) Upon the inclusion in a gas corporation's base rates subject tosubsections 8 and 9 of this section of eligible costs previously reflectedin an ISRS, the gas corporation shall immediately thereafter reconcile anypreviously unreconciled ISRS revenues as necessary to ensure that revenuesresulting from the ISRS match as closely as possible the appropriate pretaxrevenues as found by the commission for that period.
7. A gas corporation's filing of a petition or change to** an ISRSpursuant to the provisions of sections 393.1009 to 393.1015 shall not beconsidered a request for a general increase in the gas corporation's baserates and charges.
8. Commission approval of a petition, and any associated rateschedules, to establish or change an ISRS pursuant to the provisions ofsections 393.1009 to 393.1015 shall in no way be binding upon thecommission in determining the ratemaking treatment to be applied toeligible infrastructure system replacements during a subsequent generalrate proceeding when the commission may undertake to review the prudence ofsuch costs. In the event the commission disallows, during a subsequentgeneral rate proceeding, recovery of costs associated with eligibleinfrastructure system replacements previously included in an ISRS, the gascorporation shall offset its ISRS in the future as necessary to recognizeand account for any such overcollections.
9. Nothing in this section shall be construed as limiting theauthority of the commission to review and consider infrastructure systemreplacement costs along with other costs during any general rate proceedingof any gas corporation.
10. Nothing contained in sections 393.1009 to 393.1015 shall beconstrued to impair in any way the authority of the commission to reviewthe reasonableness of the rates or charges of a gas corporation, includingreview of the prudence of eligible infrastructure system replacements madeby a gas corporation, pursuant to the provisions of section 386.390, RSMo.
11. The commission shall have authority to promulgate rules for theimplementation of sections 393.1009 to 393.1015, but only to the extentsuch rules are consistent with, and do not delay the implementation of, theprovisions of sections 393.1009 to 393.1015. Any rule or portion of arule, as that term is defined in section 536.010, RSMo, that is createdunder the authority delegated in this section shall become effective onlyif it complies with and is subject to all of the provisions of chapter 536,RSMo, and, if applicable, section 536.028, RSMo. This section and chapter536, RSMo, are nonseverable and if any of the powers vested with thegeneral assembly pursuant to chapter 536, RSMo, to review, to delay theeffective date, or to disapprove and annul a rule are subsequently heldunconstitutional, then the grant of rulemaking authority and any ruleproposed or adopted after August 28, 2003, shall be invalid and void.
Documentation to be submitted--notice to be published--examinationof proposal--authorization by commission, when--pretax revenues,factors to be considered--revised rate schedule, filedwhen--rulemaking authority.
393.1015. 1. (1) At the time that a gas corporation files apetition with the commission seeking to* establish or change an ISRS, itshall submit proposed ISRS rate schedules and its supporting documentationregarding the calculation of the proposed ISRS with the petition, and shallserve the office of the public counsel with a copy of its petition, itsproposed rate schedules, and its supporting documentation.
(2) Upon the filing of a petition, and any associated rate schedules,seeking to establish or change an ISRS, the commission shall publish noticeof the filing.
2. (1) When a petition, along with any associated proposed rateschedules, is filed pursuant to the provisions of sections 393.1009 to393.1015, the commission shall conduct an examination of the proposed ISRS.
(2) The staff of the commission may examine information of the gascorporation to confirm that the underlying costs are in accordance with theprovisions of sections 393.1009 to 393.1015, and to confirm propercalculation of the proposed charge, and may submit a report regarding itsexamination to the commission not later than sixty days after the petitionis filed. No other revenue requirement or ratemaking issues may beexamined in consideration of the petition or associated proposed rateschedules filed pursuant to the provisions of sections 393.1009 to393.1015.
(3) The commission may hold a hearing on the petition and anyassociated rate schedules and shall issue an order to become effective notlater than one hundred twenty days after the petition is filed.
(4) If the commission finds that a petition complies with therequirements of sections 393.1009 to 393.1015, the commission shall enteran order authorizing the corporation to impose an ISRS that is sufficientto recover appropriate pretax revenue, as determined by the commissionpursuant to the provisions of sections 393.1009 to 393.1015.
3. A gas corporation may effectuate a change in its rate pursuant tothe provisions of this section no more often than two times every twelvemonths.
4. In determining the appropriate pretax revenue, the commissionshall consider only the following factors:
(1) The current state, federal, and local income tax or excise rates;
(2) The gas corporation's actual regulatory capital structure asdetermined during the most recent general rate proceeding of the gascorporation;
(3) The actual cost rates for the gas corporation's debt andpreferred stock as determined during the most recent general rateproceeding of the gas corporation;
(4) The gas corporation's cost of common equity as determined duringthe most recent general rate proceeding of the gas corporation;
(5) The current property tax rate or rates applicable to the eligibleinfrastructure system replacements;
(6) The current depreciation rates applicable to the eligibleinfrastructure system replacements; and
(7) In the event information pursuant to subdivisions (2), (3), and(4) of this subsection is unavailable and the commission is not providedwith such information on an agreed-upon basis, the commission shall referto the testimony submitted during the most recent general rate proceedingof the gas corporation and use, in lieu of any such unavailableinformation, the recommended capital structure, recommended cost rates fordebt and preferred stock, and recommended cost of common equity that wouldproduce the average weighted cost of capital based upon the variousrecommendations contained in such testimony.
5. (1) The monthly ISRS charge may be calculated based on areasonable estimate of billing units in the period in which the charge willbe in effect, which shall be conclusively established by dividing theappropriate pretax revenues by the customer numbers reported by the gascorporation in the annual report it most recently filed with the commissionpursuant to subdivision (6) of section 393.140, and then further dividingthis quotient by twelve. Provided, however, that the monthly ISRS may varyaccording to customer class and may be calculated based on customer numbersas determined during the most recent general rate proceeding of the gascorporation so long as the monthly ISRS for each customer class maintains aproportional relationship equivalent to the proportional relationship ofthe monthly customer charge for each customer class.
(2) At the end of each twelve-month calendar period the ISRS is ineffect, the gas corporation shall reconcile the differences between therevenues resulting from an ISRS and the appropriate pretax revenues asfound by the commission for that period and shall submit the reconciliationand a proposed ISRS adjustment to the commission for approval to recover orrefund the difference, as appropriate, through adjustments of an ISRScharge.
6. (1) A gas corporation that has implemented an ISRS pursuant tothe provisions of sections 393.1009 to 393.1015 shall file revised rateschedules to reset the ISRS to zero when new base rates and charges becomeeffective for the gas corporation following a commission order establishingcustomer rates in a general rate proceeding that incorporates in theutility's base rates subject to subsections 8 and 9 of this sectioneligible costs previously reflected in an ISRS.
(2) Upon the inclusion in a gas corporation's base rates subject tosubsections 8 and 9 of this section of eligible costs previously reflectedin an ISRS, the gas corporation shall immediately thereafter reconcile anypreviously unreconciled ISRS revenues as necessary to ensure that revenuesresulting from the ISRS match as closely as possible the appropriate pretaxrevenues as found by the commission for that period.
7. A gas corporation's filing of a petition or change to** an ISRSpursuant to the provisions of sections 393.1009 to 393.1015 shall not beconsidered a request for a general increase in the gas corporation's baserates and charges.
8. Commission approval of a petition, and any associated rateschedules, to establish or change an ISRS pursuant to the provisions ofsections 393.1009 to 393.1015 shall in no way be binding upon thecommission in determining the ratemaking treatment to be applied toeligible infrastructure system replacements during a subsequent generalrate proceeding when the commission may undertake to review the prudence ofsuch costs. In the event the commission disallows, during a subsequentgeneral rate proceeding, recovery of costs associated with eligibleinfrastructure system replacements previously included in an ISRS, the gascorporation shall offset its ISRS in the future as necessary to recognizeand account for any such overcollections.
9. Nothing in this section shall be construed as limiting theauthority of the commission to review and consider infrastructure systemreplacement costs along with other costs during any general rate proceedingof any gas corporation.
10. Nothing contained in sections 393.1009 to 393.1015 shall beconstrued to impair in any way the authority of the commission to reviewthe reasonableness of the rates or charges of a gas corporation, includingreview of the prudence of eligible infrastructure system replacements madeby a gas corporation, pursuant to the provisions of section 386.390, RSMo.
11. The commission shall have authority to promulgate rules for theimplementation of sections 393.1009 to 393.1015, but only to the extentsuch rules are consistent with, and do not delay the implementation of, theprovisions of sections 393.1009 to 393.1015. Any rule or portion of arule, as that term is defined in section 536.010, RSMo, that is createdunder the authority delegated in this section shall become effective onlyif it complies with and is subject to all of the provisions of chapter 536,RSMo, and, if applicable, section 536.028, RSMo. This section and chapter536, RSMo, are nonseverable and if any of the powers vested with thegeneral assembly pursuant to chapter 536, RSMo, to review, to delay theeffective date, or to disapprove and annul a rule are subsequently heldunconstitutional, then the grant of rulemaking authority and any ruleproposed or adopted after August 28, 2003, shall be invalid and void.
Documentation to be submitted--notice to be published--examinationof proposal--authorization by commission, when--pretax revenues,factors to be considered--revised rate schedule, filedwhen--rulemaking authority.
393.1015. 1. (1) At the time that a gas corporation files apetition with the commission seeking to* establish or change an ISRS, itshall submit proposed ISRS rate schedules and its supporting documentationregarding the calculation of the proposed ISRS with the petition, and shallserve the office of the public counsel with a copy of its petition, itsproposed rate schedules, and its supporting documentation.
(2) Upon the filing of a petition, and any associated rate schedules,seeking to establish or change an ISRS, the commission shall publish noticeof the filing.
2. (1) When a petition, along with any associated proposed rateschedules, is filed pursuant to the provisions of sections 393.1009 to393.1015, the commission shall conduct an examination of the proposed ISRS.
(2) The staff of the commission may examine information of the gascorporation to confirm that the underlying costs are in accordance with theprovisions of sections 393.1009 to 393.1015, and to confirm propercalculation of the proposed charge, and may submit a report regarding itsexamination to the commission not later than sixty days after the petitionis filed. No other revenue requirement or ratemaking issues may beexamined in consideration of the petition or associated proposed rateschedules filed pursuant to the provisions of sections 393.1009 to393.1015.
(3) The commission may hold a hearing on the petition and anyassociated rate schedules and shall issue an order to become effective notlater than one hundred twenty days after the petition is filed.
(4) If the commission finds that a petition complies with therequirements of sections 393.1009 to 393.1015, the commission shall enteran order authorizing the corporation to impose an ISRS that is sufficientto recover appropriate pretax revenue, as determined by the commissionpursuant to the provisions of sections 393.1009 to 393.1015.
3. A gas corporation may effectuate a change in its rate pursuant tothe provisions of this section no more often than two times every twelvemonths.
4. In determining the appropriate pretax revenue, the commissionshall consider only the following factors:
(1) The current state, federal, and local income tax or excise rates;
(2) The gas corporation's actual regulatory capital structure asdetermined during the most recent general rate proceeding of the gascorporation;
(3) The actual cost rates for the gas corporation's debt andpreferred stock as determined during the most recent general rateproceeding of the gas corporation;
(4) The gas corporation's cost of common equity as determined duringthe most recent general rate proceeding of the gas corporation;
(5) The current property tax rate or rates applicable to the eligibleinfrastructure system replacements;
(6) The current depreciation rates applicable to the eligibleinfrastructure system replacements; and
(7) In the event information pursuant to subdivisions (2), (3), and(4) of this subsection is unavailable and the commission is not providedwith such information on an agreed-upon basis, the commission shall referto the testimony submitted during the most recent general rate proceedingof the gas corporation and use, in lieu of any such unavailableinformation, the recommended capital structure, recommended cost rates fordebt and preferred stock, and recommended cost of common equity that wouldproduce the average weighted cost of capital based upon the variousrecommendations contained in such testimony.
5. (1) The monthly ISRS charge may be calculated based on areasonable estimate of billing units in the period in which the charge willbe in effect, which shall be conclusively established by dividing theappropriate pretax revenues by the customer numbers reported by the gascorporation in the annual report it most recently filed with the commissionpursuant to subdivision (6) of section 393.140, and then further dividingthis quotient by twelve. Provided, however, that the monthly ISRS may varyaccording to customer class and may be calculated based on customer numbersas determined during the most recent general rate proceeding of the gascorporation so long as the monthly ISRS for each customer class maintains aproportional relationship equivalent to the proportional relationship ofthe monthly customer charge for each customer class.
(2) At the end of each twelve-month calendar period the ISRS is ineffect, the gas corporation shall reconcile the differences between therevenues resulting from an ISRS and the appropriate pretax revenues asfound by the commission for that period and shall submit the reconciliationand a proposed ISRS adjustment to the commission for approval to recover orrefund the difference, as appropriate, through adjustments of an ISRScharge.
6. (1) A gas corporation that has implemented an ISRS pursuant tothe provisions of sections 393.1009 to 393.1015 shall file revised rateschedules to reset the ISRS to zero when new base rates and charges becomeeffective for the gas corporation following a commission order establishingcustomer rates in a general rate proceeding that incorporates in theutility's base rates subject to subsections 8 and 9 of this sectioneligible costs previously reflected in an ISRS.
(2) Upon the inclusion in a gas corporation's base rates subject tosubsections 8 and 9 of this section of eligible costs previously reflectedin an ISRS, the gas corporation shall immediately thereafter reconcile anypreviously unreconciled ISRS revenues as necessary to ensure that revenuesresulting from the ISRS match as closely as possible the appropriate pretaxrevenues as found by the commission for that period.
7. A gas corporation's filing of a petition or change to** an ISRSpursuant to the provisions of sections 393.1009 to 393.1015 shall not beconsidered a request for a general increase in the gas corporation's baserates and charges.
8. Commission approval of a petition, and any associated rateschedules, to establish or change an ISRS pursuant to the provisions ofsections 393.1009 to 393.1015 shall in no way be binding upon thecommission in determining the ratemaking treatment to be applied toeligible infrastructure system replacements during a subsequent generalrate proceeding when the commission may undertake to review the prudence ofsuch costs. In the event the commission disallows, during a subsequentgeneral rate proceeding, recovery of costs associated with eligibleinfrastructure system replacements previously included in an ISRS, the gascorporation shall offset its ISRS in the future as necessary to recognizeand account for any such overcollections.
9. Nothing in this section shall be construed as limiting theauthority of the commission to review and consider infrastructure systemreplacement costs along with other costs during any general rate proceedingof any gas corporation.
10. Nothing contained in sections 393.1009 to 393.1015 shall beconstrued to impair in any way the authority of the commission to reviewthe reasonableness of the rates or charges of a gas corporation, includingreview of the prudence of eligible infrastructure system replacements madeby a gas corporation, pursuant to the provisions of section 386.390, RSMo.
11. The commission shall have authority to promulgate rules for theimplementation of sections 393.1009 to 393.1015, but only to the extentsuch rules are consistent with, and do not delay the implementation of, theprovisions of sections 393.1009 to 393.1015. Any rule or portion of arule, as that term is defined in section 536.010, RSMo, that is createdunder the authority delegated in this section shall become effective onlyif it complies with and is subject to all of the provisions of chapter 536,RSMo, and, if applicable, section 536.028, RSMo. This section and chapter536, RSMo, are nonseverable and if any of the powers vested with thegeneral assembly pursuant to chapter 536, RSMo, to review, to delay theeffective date, or to disapprove and annul a rule are subsequently heldunconstitutional, then the grant of rulemaking authority and any ruleproposed or adopted after August 28, 2003, shall be invalid and void.
