Repeals and modifies certain provisions relating to the regulation of public utilities

CONSTRUCTION WORK IN PROGRESS (Section 393.135) The act repeals provisions relating to the construction work in progress of any facility by a public utility.

Current law provides that base rate recoveries arising from inclusion of construction work in progress in a public utility's rate base are subject to refund if the construction costs giving rise to the construction work in progress included in the rate base were imprudently incurred or if the project for which construction costs have been included in the rate base is not placed in service within a reasonable amount of time, as determine by the Public Service Commission. The act provides that such base rate recoveries are subject to a refund if the construction costs are otherwise unreasonable.

The act further repeals the provisions relating to the expiration date of the provisions relating to the construction work in progress.

FUTURE TEST YEAR (393.150) The act repeals provisions relating to a test year being a future test year if a public utility elected to use a future test year, including provisions relating to updating the public utility's base rates, recovery of costs of any plant investments, reconciliation of a public utility's rate base, reconciliation of certain expenses by a public utility, and a provision relating to the Public Service Commission's rulemaking authority. JULIA SHEVELEVA