HB 676 -- Utilities Sponsor: Mays (50) This bill establishes the Electric Reliability and Economy Act of 2001. In its main provisions, the bill: (1) Changes the way distributable property of electric power and light companies are assessed for property tax purposes and the values distributed if any distributable property is sold or transferred to an affiliate; (2) Requires the State Tax Commission to make rules governing methodologies for assessing the distributable property, according to specified criteria; (3) Includes in the meaning of "local property" real or tangible personal property used directly in generation of electric power and placed in service after January 1, 2001; (4) Allows an electric utility to implement a reorganization and sell, assign, lease, or otherwise transfer all or substantially all of its generation plant and generation-related assets to an affiliate without Public Service Commission (PSC) approval; (5) Requires an electric utility that transfers its generation assets to enter into a power purchase agreement with its affiliate for 5 years, with successive renewals for minimum 3-- year terms at cost-of-service rates regulated by the Federal Energy Regulatory Commission (FERC); (6) Requires an electric utility to give 30 days' notice to the PSC of its intent to reorganize and transfer generation assets. The bill specifies information that must be included in the notice; (7) Authorizes the PSC to prohibit the transaction only if it will render the electric utility unable to provide its tariffed services in a safe and reliable manner; (8) Specifies that no PSC approval is required for the sale or other disposition of transmission facilities to a regional transmission organization or similar entity under the jurisdiction of the FERC, as long as the FERC has approved the sale or disposition; (9) Requires any electric utility affiliate acquiring coal-- fired or hydro-powered generation assets according to the bill's provisions to seek approval from the PSC to subsequently transfer these assets. Specified notice requirements are outlined in the bill. The PSC is authorized to prohibit the proposed transaction only if it will result in a substantial adverse impact on the rates paid or reliability of electric service received by retail customers in the state; (10) Prohibits any electric utility that implements a reorganization and transfers generation assets by December 31, 2001, from increasing rates that were in effect on the effective date of the bill until December 31, 2006. For transfers taking place after December 31, 2001, rates that were in effect on the date of notice of reorganization and sale will not be increased for a 5-year period; (11) Prohibits the PSC from ordering a decrease, restructuring, or unbundling of the rates of an electric utility, unless requested by the electric utility, prior to December 31, 2001, or during any period in which the electric utility is prohibited from increasing its rates; (12) Requires an electric utility transferring its generation assets, within 30 days of filing a reorganization and transfer notice, to file a tariff that enables retail customers that have a maximum hourly electric demand of 2 megawatts or more to arrange for dedicated power supplies to be acquired and delivered; (13) Outlines information required in the tariff filing; (14) Requires retail customers taking service under such a tariff to pay the electric utility a basic rate consisting of applicable distribution service charges, transmission service charges, decommissioning charges, contract rates for power provided, applicable taxes, and franchise fees or similar charges; (15) Authorizes electric utilities transferring generation assets to issue bills and receive payment in electronic format, if the retail customer agrees. The PSC is authorized to make rules governing electronic billing and payment; (16) Requires the PSC to adopt rules prior to December 31, 2001, to protect the confidentiality of the data provided by participating suppliers; (17) Allows electric utilities to conduct at least one experiment on billing on a consolidated or aggregated basis, real-time pricing, or other billing or pricing experiments, including programs offered to groups of retail customers with common attributes; (18) Authorizes the PSC to require electric utilities conducting such billing experiments to file annual reports detailing costs and effects of the experiments; (19) Gives the PSC jurisdiction over safety only for a heating company serving only commercial customers in an area served by an electric utility with a tariff in effect according to the bill's provisions; (20) Requires that, in the event of a transfer of ownership of one or more Missouri division or business units, or generation stations or units, the contract with the acquiring entity contain provisions requiring the entity to hire a sufficient number of nonsupervisory employees to operate and maintain the stations by making employment offers to the nonsupervisory employees of the electric utility's division, business unit, generating station or unit at no less than the wage rates and substantially equivalent fringe benefits and terms of employment that are in effect at the time of transfer for a period of at least 30 months. The utility must offer a transition plan to those nonsupervisory employees not offered jobs by the acquiring entity; (21) Requires each electric utility owning an interest in or retaining responsibility for the decommissioning costs of one or more nuclear power plants and which is transferring its interest to recover decommissioning costs and deposit the funds in its decommissioning trust fund; (22) Authorizes an electric utility that enters into a power purchase agreement with an affiliated entity to attempt to procure power competitively for any portion of its retail load in the state at a cost less than that available under the agreement and at equivalent levels of reliability before December 31, 2006. Starting December 31, 2005, the utility may file a plan with the PSC to procure power competitively for all or a portion of its retail load. The PSC must review the plan and within 90 days after the plan is filed, enter an order approving or rejecting the plan. The bill outlines criteria for approving the plan; (23) Outlines factors utilities may consider in evaluating competitive alternatives for power supply; (24) Prohibits any obligation to build new generation plants to supply retail customers for any electric utility that transfers the generation assets or for the affiliate; and (25) Requires suppliers of electricity to register with the PSC, outlines registration requirements, authorizes the PSC to revoke registrations for specified reasons, and requires the PSC to make rules by January 1, 2002, regarding the registration form and contents, including a registration fee.Copyright (c) Missouri House of Representatives