386.315. Commission shall not change terms of employment subject to collective bargaining or certain accounting standards--use of accounting standard by utility, requirements--tariff filing allowed, c

MISSOURI STATUTES AND CODES

386.315. Commission shall not change terms of employment subject to collective bargaining or certain accounting standards--use of accounting standard by utility, requirements--tariff filing allowed, c

Commission shall not change terms of employment subject to collectivebargaining or certain accounting standards--use of accountingstandard by utility, requirements--tariff filing allowed,conditions--examination of tariffs, review period.

386.315. 1. In establishing public utility rates, thecommission shall not reduce or otherwise change any wage rate,benefit, working condition, or other term or condition ofemployment that is the subject of a collective bargainingagreement between the public utility and a labor organization.Additionally, the commission shall not disallow or refuse torecognize the actual level of expenses the utility is required byFinancial Accounting Standard 106 to record for postretirementemployee benefits for all the utility's employees, includingretirees, if the assumptions and estimates used by a publicutility in determining the Financial Accounting Standard 106expenses have been reviewed and approved by the commission, andsuch review and approval shall be based on sound actuarialprinciples.

2. A public utility which uses Financial AccountingStandard 106 shall be required to use an independent externalfunding mechanism that restricts disbursements only for qualifiedretiree benefits. In no event shall any funds remaining in suchfunding mechanism revert to the utility after all qualifiedbenefits have been paid; rather, the funding mechanism shallinclude terms which require all funds to be used for employee orretiree benefits. This section shall not in any manner beconstrued to limit the authority of the commission to set ratesfor any service rendered or to be rendered that are just andreasonable pursuant to sections 392.240, 393.140 and 393.150,RSMo.

3. Any public utility which was the subject of a rateproceeding resulting in the issuance of a report and ordersubsequent to January 1, 1993, and prior to August 28, 1994,directing or permitting the establishment of new rates by suchutility, may file one set of tariffs modifying its rates toreflect the revenue requirement associated with the utility'sexpenses for postretirement employee benefits other thanpensions, as determined by Financial Accounting Standard 106,including the utility's transition benefit obligation, regardlessof whether the deferral or immediate expense recognition methodwas used, if such utility is funding the full extent of itsFinancial Accounting Standard 106 obligation at the time suchtariffs are filed. The tariffs shall reflect the annual level ofexpenses as determined in accordance with Financial AccountingStandard 106. The commission may suspend such tariffs for nolonger than one hundred fifty days to examine the assumptions andestimates used and to review and approve the expenses required byFinancial Accounting Standard 106, including an amortization ofthe transition benefit obligation over no greater amortizationperiod than twenty years based upon sound actuarial principles,and to address any rate design issues associated with theutility's Financial Accounting Standard 106-based revenuerequirement. The commission shall not examine any other revenuerequirement issues.