Bill > HB154

This bill modifies provisions related to utility rate-setting processes, primarily focusing on gas, water, and sewer corporations. Starting July 1, 2026, utilities will have the option to use a future 12-month test year when filing for new base rates, allowing them to project their financial information for the upcoming year instead of using historical data. If a utility chooses this option, they must update their rates within 45 days of the test year's end to reflect actual expenses and rate base, ensuring that the updated figures do not exceed the originally approved amounts. The bill introduces mechanisms to protect consumers by requiring utilities to return any excess revenues to customers through a regulatory liability in future rate proceedings. Utilities using the future test year will be prohibited from recovering certain plant investment costs through existing adjustment mechanisms. The bill also gives the utility commission authority to review and adjust these updates, potentially considering changes in business risk. Additionally, the commission is empowered to create rules and regulations for implementing these new provisions, with the understanding that any such rules must comply with existing state administrative procedures.

https://house.mo.gov/Bill.aspx?bill=HB154&year=2025&code=R