Bill > HB949

This bill modifies provisions related to utility rate setting and regulation, primarily focusing on gas, electrical, water, and sewer corporations. The bill allows utility corporations to request a future test year for rate proceedings beginning July 1, 2026, which means they can base their rate calculations on projected financial data for the 12 months following their proposed rate change, instead of using historical data. If approved, utilities must update their base rates within 45 days of the test year's end to reflect actual financial information, ensuring that the updated rates do not exceed the originally approved rates. The bill requires utilities using a future test year to provide reconciliations of rate base, expenses, and other financial metrics, and mandates that any cost savings or differences be returned to customers through a regulatory liability in future rate proceedings. The legislation also prevents utilities using a future test year from recovering certain plant investment costs through existing adjustment mechanisms and gives the utility commission authority to consider changes in business risk when setting allowed returns. The bill defines key terms like "base rates" and "revenue requirement" and allows the commission to create rules for implementing these new provisions, with rules subject to legislative review.

Transportation and Infrastructure

https://house.mo.gov/Bill.aspx?bill=HB949&year=2025&code=R