Missouri § 393.1012 - Rate schedules, procedures to establish or change — prequalification process, requirements — report to general assembly.

§ 393.1012. Rate schedules, procedures to establish or change — prequalification process, requirements — report to general assembly.

1.  Notwithstanding any provisions of chapter 386 and this chapter to the contrary, beginning August 28, 2003, a gas corporation providing gas service may file a petition and proposed rate schedules with the commission to establish or change ISRS rate schedules that will allow for the adjustment of the gas corporation's rates and charges to provide for the recovery of costs for eligible infrastructure system replacements.  The commission may not approve an ISRS to the extent it would produce total annualized ISRS revenues below the lesser of one million dollars or one-half of one percent of the gas corporation's base revenue level approved by the commission in the gas corporation's most recent general rate proceeding.  The commission may not approve an ISRS to the extent it would produce total annualized ISRS revenues exceeding ten percent of the gas corporation's base revenue level approved by the commission in the gas corporation's most recent general rate proceeding.  An ISRS and any future changes thereto shall be calculated and implemented in accordance with the provisions of sections 393.1009 to 393.1015.  ISRS revenues shall be subject to a refund based upon a finding and order of the commission to the extent provided in subsections 5 and 8 of section 393.1015.

2.  The commission shall not approve an ISRS for any gas corporation that has not had a general rate proceeding decided or dismissed by issuance of a commission order within the past three years, unless the gas corporation has filed for or is the subject of a new general rate proceeding.

3.  In no event shall a gas corporation collect an ISRS for a period exceeding three years unless the gas corporation has filed for or is the subject of a new general rate proceeding; provided that the ISRS may be collected until the effective date of new rate schedules established as a result of the new general rate proceeding, or until the subject general rate proceeding is otherwise decided or dismissed by issuance of a commission order without new rates being established.

4.  In order for a gas corporation to file a petition with the commission to establish or change an ISRS, such corporation shall, by July 1, 2021, develop and file with the commission a prequalification process for contractors seeking to participate in competitive bidding to install ISRS-eligible gas utility plant projects.  Under the prequalification process, the gas corporation may specify certain eligibility requirements typically accepted by the industry, including but not limited to, experience, performance criteria, safety policies, and insurance or indemnification requirements to be met by any contractor seeking to participate in competitive bidding to install ISRS-eligible gas utility plant projects.  Contractors that meet the prequalification criteria set by the gas corporation shall be eligible to participate in the competitive bidding process for installing ISRS-eligible gas utility plant projects, with the winning bid awarded to the contractor making the overall lowest and best bid, as defined in subsection 2 of section 34.010.  The gas corporation shall file, by January 1, 2022, a verified statement with the commission confirming that it has in place a prequalification process for the competitive bidding of ISRS-eligible gas utility plant projects, and that such process conforms with the requirements of this section.  The commission shall have the authority to verify the statement to ensure compliance with this section.  After January 1, 2022, the gas corporation shall submit with each petition filing to establish or change an ISRS a verified statement confirming that it is using a competitive bidding process for no less than twenty-five percent of the combined external installation expenditures made by the gas corporation's operating units in Missouri for installing ISRS-eligible gas utility plant projects, and that such process conforms with the requirements set forth in this section.  The commission shall have the authority to verify the statement to ensure compliance with this section.  Nothing in this section shall be construed as requiring any gas corporation to use a prequalified contractor or competitive bidding process in the case of an emergency project, or to terminate any existing contract with a contractor prior to its expiration; provided however, that the use of any preexisting contract for the installation of ISRS-eligible gas utility plant projects shall not qualify as fulfilling the twenty-five percent requirement set forth in this section beyond December 31, 2022.  For contractors not qualifying through the competitive bid process, the gas corporation, upon request from the contractor, shall provide information from the process in which the contractor can be informed as to how to be better positioned to qualify for such bid opportunities in the future.

5.  By December 31, 2023, and annually thereafter, the commission shall submit a report to the general assembly on the effects of subsection 4 of this section, including gas corporation compliance, potential legislative action regarding subsection 4 of this section, the costs of installing ISRS-eligible gas utility plant projects prior to the implementation of subsection 4 of this section compared to after the implementation of subsection 4 of this section, and any other information regarding the processes established under subsection 4 of this section that the commission deems necessary.

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(L. 2003 H.B. 208, A.L. 2020 H.B. 2120)

Expires 8-28-29; see § 393.1015

---- end of effective  28 Aug 2020 ----

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