Citation of law--definitions--policy to value demand-side investmentsequal to traditional investments--development of cost recoverymechanisms--costs not to be assigned to customers,when--rulemaking authority--annual report.
393.1075. 1. This section shall be known as the "Missouri EnergyEfficiency Investment Act".
2. As used in this section, the following terms shall mean:
(1) "Commission", the Missouri public service commission;
(2) "Demand response", measures that decrease peak demand or shiftdemand to off-peak periods;
(3) "Demand-side program", any program conducted by the utility tomodify the net consumption of electricity on the retail customer's side ofthe electric meter, including but not limited to energy efficiencymeasures, load management, demand response, and interruptible orcurtailable load;
(4) "Energy efficiency", measures that reduce the amount ofelectricity required to achieve a given end use;
(5) "Interruptible or curtailable rate", a rate under which acustomer receives a reduced charge in exchange for agreeing to allow theutility to withdraw the supply of electricity under certain specifiedconditions;
(6) "Total resource cost test", a test that compares the sum ofavoided utility costs and avoided probable environmental compliance coststo the sum of all incremental costs of end-use measures that areimplemented due to the program, as defined by the commission in rules.
3. It shall be the policy of the state to value demand-sideinvestments equal to traditional investments in supply and deliveryinfrastructure and allow recovery of all reasonable and prudent costs ofdelivering cost-effective demand-side programs. In support of thispolicy, the commission shall:
(1) Provide timely cost recovery for utilities;
(2) Ensure that utility financial incentives are aligned with helpingcustomers use energy more efficiently and in a manner that sustains orenhances utility customers' incentives to use energy more efficiently; and
(3) Provide timely earnings opportunities associated withcost-effective measurable and verifiable efficiency savings.
4. The commission shall permit electric corporations to implementcommission-approved demand-side programs proposed pursuant to this sectionwith a goal of achieving all cost-effective demand-side savings. Recoveryfor such programs shall not be permitted unless the programs are approvedby the commission, result in energy or demand savings and are beneficial toall customers in the customer class in which the programs are proposed,regardless of whether the programs are utilized by all customers. Thecommission shall consider the total resource cost test a preferredcost-effectiveness test. Programs targeted to low-income customers orgeneral education campaigns do not need to meet a cost-effectiveness test,so long as the commission determines that the program or campaign is in thepublic interest. Nothing herein shall preclude the approval of demand-sideprograms that do not meet the test if the costs of the program above thelevel determined to be cost-effective are funded by the customersparticipating in the program or through tax or other governmental creditsor incentives specifically designed for that purpose.
5. To comply with this section the commission may develop costrecovery mechanisms to further encourage investments in demand-sideprograms including, in combination and without limitation: capitalizationof investments in and expenditures for demand-side programs, rate designmodifications, accelerated depreciation on demand-side investments, andallowing the utility to retain a portion of the net benefits of ademand-side program for its shareholders. In setting rates the commissionshall fairly apportion the costs and benefits of demand-side programs toeach customer class except as provided for in subsection 6 of this section.Prior to approving a rate design modification associated with demand-sidecost recovery, the commission shall conclude a docket studying the effectsthereof and promulgate an appropriate rule.
6. The commission may reduce or exempt allocation of demand-sideexpenditures to low-income classes, as defined in an appropriate rateproceeding, as a subclass of residential service.
7. Provided that the customer has notified the electric corporationthat the customer elects not to participate in demand-side measures offeredby an electrical corporation, none of the costs of demand-side measures ofan electric corporation offered under this section or by any otherauthority, and no other charges implemented in accordance with thissection, shall be assigned to any account of any customer, including itsaffiliates and subsidiaries, meeting one or more of the following criteria:
(1) The customer has one or more accounts within the serviceterritory of the electrical corporation that has a demand of five thousandkilowatts or more;
(2) The customer operates an interstate pipeline pumping station,regardless of size; or
(3) The customer has accounts within the service territory of theelectrical corporation that have, in aggregate, a demand of two thousandfive hundred kilowatts or more, and the customer has a comprehensivedemand-side or energy efficiency program and can demonstrate an achievementof savings at least equal to those expected from utility-provided programs.
8. Customers that have notified the electrical corporation that theydo not wish to participate in demand-side programs under this section shallnot subsequently be eligible to participate in demand-side programs exceptunder guidelines established by the commission in rulemaking.
9. Customers who participate in demand-side programs initiated afterAugust 1, 2009, shall be required to participate in program funding for aperiod of time to be established by the commission in rulemaking.
10. Customers electing not to participate in an electriccorporation's demand-side programs under this section shall still beallowed to participate in interruptible or curtailable rate schedules ortariffs offered by the electric corporation.
11. The commission shall provide oversight and may adopt rules andprocedures and approve corporation-specific settlements and tariffprovisions, independent evaluation of demand-side programs, as necessary,to ensure that electric corporations can achieve the goals of this section.Any rule or portion of a rule, as that term is defined in section 536.010,RSMo, that is created under the authority delegated in this section shallbecome effective only if it complies with and is subject to all of theprovisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo.This section and chapter 536, RSMo, are nonseverable and if any of thepowers vested with the general assembly pursuant to chapter 536, RSMo, toreview, to delay the effective date, or to disapprove and annul a rule aresubsequently held unconstitutional, then the grant of rulemaking authorityand any rule proposed or adopted after August 28, 2009, shall be invalidand void.
12. Each electric corporation shall submit an annual report to thecommission describing the demand-side programs implemented by the utilityin the previous year. The report shall document program expenditures,including incentive payments, peak demand and energy savings impacts andthe techniques used to estimate those impacts, avoided costs and thetechniques used to estimate those costs, the estimated cost-effectivenessof the demand-side programs, and the net economic benefits of thedemand-side programs.
13. Charges attributable to demand-side programs under this sectionshall be clearly shown as a separate line item on bills to the electricalcorporation's customers.
14. (1) Any customer of an electrical corporation who has received astate tax credit under sections 135.350 to 135.362, RSMo, or under sections253.545 to 253.561, RSMo, shall not be eligible for participation in anydemand-side program offered by an electrical corporation under this sectionif such program offers a monetary incentive to the customer.
(2) As a condition of participation in any demand-side programoffered by an electrical corporation under this section when such programoffers a monetary incentive to the customer, the commission shall developrules that require documentation to be provided by the customer to theelectrical corporation to show that the customer has not received a taxcredit listed in subdivision (1) of this subsection.
(3) The penalty for a customer who provides false documentation undersubdivision (2) of this subsection shall be a class A misdemeanor.
15. The commission shall develop rules that provide for disclosure ofparticipants in all demand-side programs offered by electrical corporationsunder this section when such programs provide monetary incentives to thecustomer. The disclosure required by this subsection may include, but notbe limited to, the following: the name of the participant, or the names ofthe principles if for a company, the property address, and the amount ofthe monetary incentive received.
Citation of law--definitions--policy to value demand-side investmentsequal to traditional investments--development of cost recoverymechanisms--costs not to be assigned to customers,when--rulemaking authority--annual report.
393.1075. 1. This section shall be known as the "Missouri EnergyEfficiency Investment Act".
2. As used in this section, the following terms shall mean:
(1) "Commission", the Missouri public service commission;
(2) "Demand response", measures that decrease peak demand or shiftdemand to off-peak periods;
(3) "Demand-side program", any program conducted by the utility tomodify the net consumption of electricity on the retail customer's side ofthe electric meter, including but not limited to energy efficiencymeasures, load management, demand response, and interruptible orcurtailable load;
(4) "Energy efficiency", measures that reduce the amount ofelectricity required to achieve a given end use;
(5) "Interruptible or curtailable rate", a rate under which acustomer receives a reduced charge in exchange for agreeing to allow theutility to withdraw the supply of electricity under certain specifiedconditions;
(6) "Total resource cost test", a test that compares the sum ofavoided utility costs and avoided probable environmental compliance coststo the sum of all incremental costs of end-use measures that areimplemented due to the program, as defined by the commission in rules.
3. It shall be the policy of the state to value demand-sideinvestments equal to traditional investments in supply and deliveryinfrastructure and allow recovery of all reasonable and prudent costs ofdelivering cost-effective demand-side programs. In support of thispolicy, the commission shall:
(1) Provide timely cost recovery for utilities;
(2) Ensure that utility financial incentives are aligned with helpingcustomers use energy more efficiently and in a manner that sustains orenhances utility customers' incentives to use energy more efficiently; and
(3) Provide timely earnings opportunities associated withcost-effective measurable and verifiable efficiency savings.
4. The commission shall permit electric corporations to implementcommission-approved demand-side programs proposed pursuant to this sectionwith a goal of achieving all cost-effective demand-side savings. Recoveryfor such programs shall not be permitted unless the programs are approvedby the commission, result in energy or demand savings and are beneficial toall customers in the customer class in which the programs are proposed,regardless of whether the programs are utilized by all customers. Thecommission shall consider the total resource cost test a preferredcost-effectiveness test. Programs targeted to low-income customers orgeneral education campaigns do not need to meet a cost-effectiveness test,so long as the commission determines that the program or campaign is in thepublic interest. Nothing herein shall preclude the approval of demand-sideprograms that do not meet the test if the costs of the program above thelevel determined to be cost-effective are funded by the customersparticipating in the program or through tax or other governmental creditsor incentives specifically designed for that purpose.
5. To comply with this section the commission may develop costrecovery mechanisms to further encourage investments in demand-sideprograms including, in combination and without limitation: capitalizationof investments in and expenditures for demand-side programs, rate designmodifications, accelerated depreciation on demand-side investments, andallowing the utility to retain a portion of the net benefits of ademand-side program for its shareholders. In setting rates the commissionshall fairly apportion the costs and benefits of demand-side programs toeach customer class except as provided for in subsection 6 of this section.Prior to approving a rate design modification associated with demand-sidecost recovery, the commission shall conclude a docket studying the effectsthereof and promulgate an appropriate rule.
6. The commission may reduce or exempt allocation of demand-sideexpenditures to low-income classes, as defined in an appropriate rateproceeding, as a subclass of residential service.
7. Provided that the customer has notified the electric corporationthat the customer elects not to participate in demand-side measures offeredby an electrical corporation, none of the costs of demand-side measures ofan electric corporation offered under this section or by any otherauthority, and no other charges implemented in accordance with thissection, shall be assigned to any account of any customer, including itsaffiliates and subsidiaries, meeting one or more of the following criteria:
(1) The customer has one or more accounts within the serviceterritory of the electrical corporation that has a demand of five thousandkilowatts or more;
(2) The customer operates an interstate pipeline pumping station,regardless of size; or
(3) The customer has accounts within the service territory of theelectrical corporation that have, in aggregate, a demand of two thousandfive hundred kilowatts or more, and the customer has a comprehensivedemand-side or energy efficiency program and can demonstrate an achievementof savings at least equal to those expected from utility-provided programs.
8. Customers that have notified the electrical corporation that theydo not wish to participate in demand-side programs under this section shallnot subsequently be eligible to participate in demand-side programs exceptunder guidelines established by the commission in rulemaking.
9. Customers who participate in demand-side programs initiated afterAugust 1, 2009, shall be required to participate in program funding for aperiod of time to be established by the commission in rulemaking.
10. Customers electing not to participate in an electriccorporation's demand-side programs under this section shall still beallowed to participate in interruptible or curtailable rate schedules ortariffs offered by the electric corporation.
11. The commission shall provide oversight and may adopt rules andprocedures and approve corporation-specific settlements and tariffprovisions, independent evaluation of demand-side programs, as necessary,to ensure that electric corporations can achieve the goals of this section.Any rule or portion of a rule, as that term is defined in section 536.010,RSMo, that is created under the authority delegated in this section shallbecome effective only if it complies with and is subject to all of theprovisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo.This section and chapter 536, RSMo, are nonseverable and if any of thepowers vested with the general assembly pursuant to chapter 536, RSMo, toreview, to delay the effective date, or to disapprove and annul a rule aresubsequently held unconstitutional, then the grant of rulemaking authorityand any rule proposed or adopted after August 28, 2009, shall be invalidand void.
12. Each electric corporation shall submit an annual report to thecommission describing the demand-side programs implemented by the utilityin the previous year. The report shall document program expenditures,including incentive payments, peak demand and energy savings impacts andthe techniques used to estimate those impacts, avoided costs and thetechniques used to estimate those costs, the estimated cost-effectivenessof the demand-side programs, and the net economic benefits of thedemand-side programs.
13. Charges attributable to demand-side programs under this sectionshall be clearly shown as a separate line item on bills to the electricalcorporation's customers.
14. (1) Any customer of an electrical corporation who has received astate tax credit under sections 135.350 to 135.362, RSMo, or under sections253.545 to 253.561, RSMo, shall not be eligible for participation in anydemand-side program offered by an electrical corporation under this sectionif such program offers a monetary incentive to the customer.
(2) As a condition of participation in any demand-side programoffered by an electrical corporation under this section when such programoffers a monetary incentive to the customer, the commission shall developrules that require documentation to be provided by the customer to theelectrical corporation to show that the customer has not received a taxcredit listed in subdivision (1) of this subsection.
(3) The penalty for a customer who provides false documentation undersubdivision (2) of this subsection shall be a class A misdemeanor.
15. The commission shall develop rules that provide for disclosure ofparticipants in all demand-side programs offered by electrical corporationsunder this section when such programs provide monetary incentives to thecustomer. The disclosure required by this subsection may include, but notbe limited to, the following: the name of the participant, or the names ofthe principles if for a company, the property address, and the amount ofthe monetary incentive received.
Citation of law--definitions--policy to value demand-side investmentsequal to traditional investments--development of cost recoverymechanisms--costs not to be assigned to customers,when--rulemaking authority--annual report.
393.1075. 1. This section shall be known as the "Missouri EnergyEfficiency Investment Act".
2. As used in this section, the following terms shall mean:
(1) "Commission", the Missouri public service commission;
(2) "Demand response", measures that decrease peak demand or shiftdemand to off-peak periods;
(3) "Demand-side program", any program conducted by the utility tomodify the net consumption of electricity on the retail customer's side ofthe electric meter, including but not limited to energy efficiencymeasures, load management, demand response, and interruptible orcurtailable load;
(4) "Energy efficiency", measures that reduce the amount ofelectricity required to achieve a given end use;
(5) "Interruptible or curtailable rate", a rate under which acustomer receives a reduced charge in exchange for agreeing to allow theutility to withdraw the supply of electricity under certain specifiedconditions;
(6) "Total resource cost test", a test that compares the sum ofavoided utility costs and avoided probable environmental compliance coststo the sum of all incremental costs of end-use measures that areimplemented due to the program, as defined by the commission in rules.
3. It shall be the policy of the state to value demand-sideinvestments equal to traditional investments in supply and deliveryinfrastructure and allow recovery of all reasonable and prudent costs ofdelivering cost-effective demand-side programs. In support of thispolicy, the commission shall:
(1) Provide timely cost recovery for utilities;
(2) Ensure that utility financial incentives are aligned with helpingcustomers use energy more efficiently and in a manner that sustains orenhances utility customers' incentives to use energy more efficiently; and
(3) Provide timely earnings opportunities associated withcost-effective measurable and verifiable efficiency savings.
4. The commission shall permit electric corporations to implementcommission-approved demand-side programs proposed pursuant to this sectionwith a goal of achieving all cost-effective demand-side savings. Recoveryfor such programs shall not be permitted unless the programs are approvedby the commission, result in energy or demand savings and are beneficial toall customers in the customer class in which the programs are proposed,regardless of whether the programs are utilized by all customers. Thecommission shall consider the total resource cost test a preferredcost-effectiveness test. Programs targeted to low-income customers orgeneral education campaigns do not need to meet a cost-effectiveness test,so long as the commission determines that the program or campaign is in thepublic interest. Nothing herein shall preclude the approval of demand-sideprograms that do not meet the test if the costs of the program above thelevel determined to be cost-effective are funded by the customersparticipating in the program or through tax or other governmental creditsor incentives specifically designed for that purpose.
5. To comply with this section the commission may develop costrecovery mechanisms to further encourage investments in demand-sideprograms including, in combination and without limitation: capitalizationof investments in and expenditures for demand-side programs, rate designmodifications, accelerated depreciation on demand-side investments, andallowing the utility to retain a portion of the net benefits of ademand-side program for its shareholders. In setting rates the commissionshall fairly apportion the costs and benefits of demand-side programs toeach customer class except as provided for in subsection 6 of this section.Prior to approving a rate design modification associated with demand-sidecost recovery, the commission shall conclude a docket studying the effectsthereof and promulgate an appropriate rule.
6. The commission may reduce or exempt allocation of demand-sideexpenditures to low-income classes, as defined in an appropriate rateproceeding, as a subclass of residential service.
7. Provided that the customer has notified the electric corporationthat the customer elects not to participate in demand-side measures offeredby an electrical corporation, none of the costs of demand-side measures ofan electric corporation offered under this section or by any otherauthority, and no other charges implemented in accordance with thissection, shall be assigned to any account of any customer, including itsaffiliates and subsidiaries, meeting one or more of the following criteria:
(1) The customer has one or more accounts within the serviceterritory of the electrical corporation that has a demand of five thousandkilowatts or more;
(2) The customer operates an interstate pipeline pumping station,regardless of size; or
(3) The customer has accounts within the service territory of theelectrical corporation that have, in aggregate, a demand of two thousandfive hundred kilowatts or more, and the customer has a comprehensivedemand-side or energy efficiency program and can demonstrate an achievementof savings at least equal to those expected from utility-provided programs.
8. Customers that have notified the electrical corporation that theydo not wish to participate in demand-side programs under this section shallnot subsequently be eligible to participate in demand-side programs exceptunder guidelines established by the commission in rulemaking.
9. Customers who participate in demand-side programs initiated afterAugust 1, 2009, shall be required to participate in program funding for aperiod of time to be established by the commission in rulemaking.
10. Customers electing not to participate in an electriccorporation's demand-side programs under this section shall still beallowed to participate in interruptible or curtailable rate schedules ortariffs offered by the electric corporation.
11. The commission shall provide oversight and may adopt rules andprocedures and approve corporation-specific settlements and tariffprovisions, independent evaluation of demand-side programs, as necessary,to ensure that electric corporations can achieve the goals of this section.Any rule or portion of a rule, as that term is defined in section 536.010,RSMo, that is created under the authority delegated in this section shallbecome effective only if it complies with and is subject to all of theprovisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo.This section and chapter 536, RSMo, are nonseverable and if any of thepowers vested with the general assembly pursuant to chapter 536, RSMo, toreview, to delay the effective date, or to disapprove and annul a rule aresubsequently held unconstitutional, then the grant of rulemaking authorityand any rule proposed or adopted after August 28, 2009, shall be invalidand void.
12. Each electric corporation shall submit an annual report to thecommission describing the demand-side programs implemented by the utilityin the previous year. The report shall document program expenditures,including incentive payments, peak demand and energy savings impacts andthe techniques used to estimate those impacts, avoided costs and thetechniques used to estimate those costs, the estimated cost-effectivenessof the demand-side programs, and the net economic benefits of thedemand-side programs.
13. Charges attributable to demand-side programs under this sectionshall be clearly shown as a separate line item on bills to the electricalcorporation's customers.
14. (1) Any customer of an electrical corporation who has received astate tax credit under sections 135.350 to 135.362, RSMo, or under sections253.545 to 253.561, RSMo, shall not be eligible for participation in anydemand-side program offered by an electrical corporation under this sectionif such program offers a monetary incentive to the customer.
(2) As a condition of participation in any demand-side programoffered by an electrical corporation under this section when such programoffers a monetary incentive to the customer, the commission shall developrules that require documentation to be provided by the customer to theelectrical corporation to show that the customer has not received a taxcredit listed in subdivision (1) of this subsection.
(3) The penalty for a customer who provides false documentation undersubdivision (2) of this subsection shall be a class A misdemeanor.
15. The commission shall develop rules that provide for disclosure ofparticipants in all demand-side programs offered by electrical corporationsunder this section when such programs provide monetary incentives to thecustomer. The disclosure required by this subsection may include, but notbe limited to, the following: the name of the participant, or the names ofthe principles if for a company, the property address, and the amount ofthe monetary incentive received.
