Bill > HB238

This bill modifies provisions relating to utilities, specifically establishing a comprehensive framework for electrical corporations to issue "securitized utility tariff bonds" to finance energy transition costs and qualified extraordinary costs. The bill creates a detailed process by which electrical corporations can petition the Missouri Public Service Commission (PSC) to issue financing orders that allow them to recover certain costs through specialized utility tariff charges. These bonds would be non-recourse to the electrical corporation's credit and would be paid through a separate, non-bypassable charge on customer utility bills. Key provisions include defining numerous technical terms, outlining the petition and approval process for such bonds, establishing protections for bondholders, specifying how the bonds will be structured and managed, and ensuring that the state and its agencies cannot impair the bonds or the associated utility tariff charges. The bill provides electrical corporations with flexibility in issuing these bonds while creating a transparent mechanism for recovering specific types of utility-related costs, such as early retirement of generating facilities or extraordinary expenses, with the aim of potentially reducing long-term customer rate impacts. The legislation also includes provisions to protect bondholders and specify that these bonds are not state obligations and do not represent a direct financial liability for the state of Missouri.

https://house.mo.gov/Bill.aspx?bill=HB238&year=2025&code=R