393.155. Electric corporation's rates, increase in, phase-in of, when, how--powers of commission. - Missouri Statutes

Electric corporation's rates, increase in, phase-in of, when,how--powers of commission.

393.155. 1. If, after hearing, the commission determinesthat any electrical corporation should be allowed a totalincrease in revenue that is primarily due to an unusually largeincrease in the corporation's rate base, the commission, in itsdiscretion, need not allow the full amount of such increase totake effect at one time, but may instead phase in such increaseover a reasonable number of years. Any such phase-in shall allowthe electrical corporation to recover the revenue which wouldhave been allowed in the absence of a phase-in and shall make ajust and reasonable adjustment thereto to reflect the fact thatrecovery of a part of such revenue is deferred to future years.In order to implement the phase-in, the commission may, in itsdiscretion, approve tariff schedules which will take effect fromtime to time after the phase-in is initially approved.

2. If, after hearing, the commission determines that anelectrical corporation, which is a wholly owned subsidiary of apublic utility holding company registered under the PublicUtility Holding Company Act of 1935, should be allowed anunusually large increase in total revenue which is primarily dueto an unusually large increase in expense resulting from theFederal Energy Regulatory Commission regulation of expensesrelated to a generating facility owned by another wholly ownedsubsidiary of the same public utility holding company; then thecommission, in its discretion, need not allow the full amount ofsuch increase in total revenue to take effect at one time, butmay instead phase in such increase over a reasonable number ofyears. Any phase-in authorized pursuant to this subsection shallallow the electrical corporation to recover the revenue whichwould have been allowed in the absence of a phase-in and shallmake a just and reasonable adjustment thereto to reflect the factthat recovery of a part of such revenue is deferred to futureyears, including reasonable financing costs incurred inconnection therewith. In order to implement a phase-inauthorized pursuant to this subsection, the commission may, inits discretion, approve tariff schedules which will take effectfrom time to time after the phase-in is initially approved.

(L. 1984 H.B. 1477, A.L. 1986 H.B. 1429)

Effective 5-1-86