394.312. Territorial agreements authorized, procedure--public service commission, duties, fees may be set.

MISSOURI STATUTES AND CODES

394.312. Territorial agreements authorized, procedure--public service commission, duties, fees may be set.

Territorial agreements authorized, procedure--public servicecommission, duties, fees may be set.

394.312. 1. Competition to provide retail electric service, asbetween rural electric cooperatives, electrical corporations andmunicipally owned utilities may be displaced by written territorialagreements, but only to the extent hereinafter provided for in thissection.

2. Such territorial agreements shall specifically designate theboundaries of the electric service area of each electric service suppliersubject to the agreement, any and all powers granted to a rural electriccooperative by a municipality, pursuant to the agreement, to operate withinthe corporate boundaries of that municipality, notwithstanding theprovisions of section 394.020 and of section 394.080 to the contrary, andany and all powers granted to a municipally owned utility, pursuant to theagreement, to operate in areas beyond the corporate municipal boundaries ofits municipality.

3. Where the parties cannot agree upon the boundaries of the electricservice areas that are to be set forth in the agreement, they may, bymutual consent of all parties involved, petition the public servicecommission to designate the boundaries of the electric service areas to beserved by each party and such designations by the commission shall bebinding on all such parties. Petitions shall be made pursuant to the rulesand regulations of the commission governing applications for certificatesof public convenience and necessity and the commission shall holdevidentiary hearings on all petitions so received as required in subsection5 of this section. The commission shall base its final determinationregarding such petitions upon a finding that the commission's designationof electric service areas is in the public interest.

4. The provisions of sections 386.310, RSMo, and 393.106, RSMo, andsections 394.160 and 394.315 to the contrary notwithstanding, beforebecoming effective, all territorial agreements entered into under theprovisions of this section, including any subsequent amendments to suchagreements, or the transfer or assignment of the agreement or any rights orobligations of any party to an agreement, shall receive the approval of thepublic service commission by report and order. Applications for commissionapproval shall be made and notice of such filing shall be given to otherelectrical suppliers pursuant to the rules and regulations of thecommission governing applications for certificates of public convenienceand necessity. Unless otherwise ordered by the commission for good causeshown, the commission shall rule on such applications not later than onehundred twenty days after the application is properly filed with thesecretary of the commission.

5. The commission shall hold evidentiary hearings to determinewhether such territorial agreements should be approved or disapproved,except that in those instances where the matter is resolved by astipulation and agreement submitted to the commission by all the partiessuch hearings may be waived by agreement of the parties. The commissionmay approve the application if it determines that approval of theterritorial agreement in total is not detrimental to the public interest.Review of commission decisions under this section shall be governed by theprovisions of sections 386.500 to 386.550, RSMo.

6. Commission approval of any territorial agreement entered intounder the provisions of this section shall in no way affect or diminish therights and duties of any supplier not a party to the agreement or of anyelectrical corporation authorized by law to provide service within theboundaries designated in such territorial agreement. In the event anyelectrical corporation which is not a party to the territorial agreementand which is subject to the jurisdiction, control and regulation of thecommission under chapters 386, RSMo, and 393, RSMo, has heretofore soughtor hereafter seeks authorization from the commission to render electricservice or construct, operate and maintain electric facilities within theboundaries designated in any such territorial agreement, the commission, inmaking its determination regarding such requested authority, shall give noconsideration or weight to the existence of any such territorial agreementand any actual rendition of retail electric service by any of the partiesto such territorial agreement will not preclude the commission fromgranting the requested authority.

7. The commission shall have jurisdiction to entertain and hearcomplaints involving any commission-approved territorial agreement. Suchcomplaints shall be brought and prosecuted in the same manner as othercomplaints before the commission. The commission shall hold an evidentiaryhearing regarding such complaints, except that in those instances where thematter is resolved by a stipulation and agreement submitted to thecommission by all the parties, such hearings may be waived by agreement ofthe parties. If the commission determines that a territorial agreementthat is the subject of a complaint is no longer in the public interest, itshall have the authority to suspend or revoke the territorial agreement.If the commission determines that the territorial agreement is still in thepublic interest, such territorial agreement shall remain in full force andeffect. Except as provided in this section, nothing in this section shallbe construed as otherwise conferring upon the commission jurisdiction overthe service, rates, financing, accounting, or management of any ruralelectric cooperative or municipally owned utility, or to amend, modify, orotherwise limit the rights of electrical suppliers to provide service asotherwise provided by law.

8. Notwithstanding the provisions of section 386.410, RSMo, thecommission shall by rule set a schedule of fees based upon its costs inreviewing proposed territorial agreements for approval or disapproval.Responsibility for payment of the fees shall be that of the parties to theproceeding as ordered by the commission in each case. The fees shall bepaid to the director of revenue who shall remit such payments to the statetreasurer. The state treasurer shall credit such payments to the publicservice commission fund, or its successor fund, as established in section33.571, RSMo. Nothing in this section shall be construed as otherwiseconferring upon the commission jurisdiction over the service, rates,financing, accounting or management of any rural electric cooperative ormunicipally owned utility and except as provided in this section nothingshall affect the rights, privileges or duties of rural electriccooperatives, electrical corporations or municipally owned utilities.

9. Notwithstanding any other provisions of this section, thecommission may hold a hearing regarding any application, complaint orpetition filed under this section upon its own motion.