Missouri Public Service Commission 101 - NARUC

Missouri Public Service Commission

101

Missouri Public Service Commission | Jefferson City, MO


101 and Power Sector Overview

Robert S. Kenney

Chairman

December 2014


Organization and Management of the Missouri Public Service

Commission


Main office in Jefferson City

Offices in St. Louis and Kansas City

Approximately 200 Employees (permanent and temporary)

180 in Jefferson City

10 in St. Louis

6 in Kansas City

3 Field Inspectors for Manufactured Housing

Regulated Utilities: Investor-Owned Public Utilities


Electric: 4

Natural Gas: 7

Steam Heat: 2

Water & Sewer: 73 (not municipals, water districts or

sewer districts)

Telephone: 650 (not VOIP or wireless)

Manufactured Housing Dealers/Manufacturers: 250

What is a Public Utility?


Corporation or person

Owning or controlling plant

To facilitate the sale of gas, water, electricity

For public use

Water – for “gain”

Sewer – for “gain” and at least 25 outlets

The PSC Regulates Monopolies


PSC is the surrogate for competition

Municipals, Electric Cooperatives, Water and sewer

districts are non-profit

Municipals, cooperatives and districts serve citizens and

members, who have opportunity to participate in running

the enterprise

Who’s Affected by PSC Decisions?


1.9 million electric customers

1.3 million gas

About 500,000 water customers

Wireline Telephone Customers

Buyers of manufactured and modular homes

Who Works at the PSC?


The PSC employs experts in many areas

Economists

Management and Financial specialists

Accountants/Auditors

Engineers

Attorneys

What Statutes and Rules

Apply to PSC Practice


Chapter 386: Organization and Powers

Chapter 392: Telephone

Chapter 393: Powers of Utilities and Regulation

Chapter 700: Manufactured Housing

Chapter 536: Missouri Administrative Procedures Act

4 CSR 240-2: Practice and Procedure

Organization of the Commission


Commissioners

General Counsel/Secretary

Adjudication, Data Center,

External litigation, standards of conduct

Staff Counsel

Administration and Regulatory Policy

Budget, human resources, legislation, IS, consumer services

Regulatory Review

Utility Services, Utility Operations

Commissioners


Chairman Robert S. Kenney ------------

Commissioner Steve Stoll --------------------------

Commissioner William Kenney -----------

Commissioner Daniel Hall -----------------------

Commissioner Scott Rupp ----------------

Legal/Policy Advisors

Designated Principal Assistants

Appointed by Governor, confirmed by Senate, six year terms

http://psc.mo.gov/Commissioners/Robert_S_Kenney

General Counsel/Secretary


General Counsel (Mo. Rev. Stat. § 386.071)

Secretary (Mo. Rev. Stat. § 386.090)

Adjudication (6 Regulatory Law Judges)

Data Center (Records Management, Electronic Filing and

Information System (EFIS))

External Litigation (Appeals, Injunctions, Penalties,

Receiverships, Federal Energy Regulatory Commission)

Staff Counsel


Represents Staff (Services and Operations) of the

Commission

13 Attorneys Plus Support Staff

Litigation Specialist, Deputies for Electric, Gas, Water &

Sewer, Telecom, Manufactured Housing

Consumer Services (7 Specialists, 2 Coordinators,

Manager)

Administration and Regulatory Policy


Human Resources Department

Budget and Fiscal Services Department

Regulatory Policy and Public Information Department

Information Services Department

Consumer Services Department

1 Manager

1 Public Information Coordinator

2 Consumer Services Coordinators

6 Consumer Services Specialists

Regulatory Review Division


Utility Services Department

Engineering Management Services

Financial Analysis Unit

Procurement Analysis Unit

Auditing Unit

Regulatory Review Division


Utility Operations Department

Telecommunications Unit

Water and Sewer Unit

Manufactured Housing Unit

Energy Unit (Electric and Natural Gas)

Energy Rate Design and Tariffs

Energy Resource Analysis

Energy Infrastructure Reliability

Commission Activities


Adjudication of Contested Cases at the PSC:

Ratemaking, mergers, transfer of assets

Certificates to Operate

Complaints for violation of statutes, rules, tariffs

Mediation, Arbitration

Rulemaking (Implement legislation, procedures before the Commission)

Investigations (Safety; Service quality; Violations of laws, rules or tariffs; Reasonable Rates)

Workshops (Rulemaking, Policy)

Participation at FERC, FCC, NRC, MISO, SPP, EISPC

Management of Activities:

Adjudication of Contested Cases Before the Commission


Decision Makers:

Commissioners act as Judges

Regulatory Law Judges assist Commissioners by presiding over

hearings and writing decisions

Advisors and DPAs assist Commissioners

Rules prohibiting ex parte communications between

Commissioners and parties apply

Commissioners decide cases by majority vote at a public agenda

meeting

Management of Activities: Adjudication of Contested Cases

Before the Commission (cont.)


Parties to Contested Cases

Applicant-utility, Intervenors, Office of the Public Counsel,

Complainant-customers

Staff of the Commission (Regulatory Review, Utility Services,

Utility Operations) appear as a Party to cases before the

Commission

Staff Counsel Represents Staff before the Commission

Management of Commission Activities:

Rulemaking and Workshops


Rulemakings and Workshops are not Contested Cases

Rulemakings gather information and comments from

interested stakeholders to create a rule

Workshops gather information and comments prior to

rulemaking or establishing policy

Prohibitions on Ex Parte communications do not apply

Management of Commission Activities: Investigations


Conducted by Staff, Commissioners

Sometimes informal, no case or official file is opened

Sometimes formal, a case is opened and docketed

Ex Parte prohibitions do not apply but disclosure of certain

communications between Staff and Commissioners may be

required

Management of Commission Activities: Federal Activities


Federal Energy Regulatory Commission

Federal Communications Commission

Environmental Protection Agency

Nuclear Regulatory Commission

Southwest Power Pool

Midcontinent Independent System Operator

Eastern Interconnection Planning Council

Funding


Commission is funded by assessments paid by regulated

utilities

The expense of regulating each group of utilities is

calculated

Each utility is assessed a portion of expenses of the group

in proportion to their gross intrastate operating revenues in

previous year

Utilities may pay in four installments

Legislation


Legislative Coordinator

State legislature is in session January through May each

year

Commission provides information and testimony to the

legislature regarding issues within its expertise

Recent legislation: Renewable Energy Standards, Energy

Efficiency Investment Act, Early site permit for nuclear

plants

Power Sector Overview


Missouri Demographic Information


Population: 6,044,171 (2013 Estimate)

Unemployment Rate: 5.9% (as of October 2014)

Geography: 68,714.52 square miles

Gross State Product: $276,345,000,000.00 Manufacturing – $36,282,000,000

Utilities – $5,619,000,000

Industry: Aerospace

Transportation

Food Processing

Light Manufacturing

Beer

Missouri’s Regulated Utilities


Four regulated electric utilities

Ameren Missouri

Empire District Electric

Kansas City Power & Light

KCP&L Greater Missouri Operations

Companies serve more than 1.9 million electric customers

More than 50% served by Ameren Missouri

Missouri’s Regulated Utilities


Seven regulated gas utilities Ameren

Laclede

Missouri Gas Energy (now merged with Laclede)

Liberty

Empire

Summit

Companies serve more than 1.3 million natural gas customers

About 83% served by Laclede and the former Missouri Gas Energy

Missouri’s Regulated Electric Utilities


Ameren Missouri

Serves the eastern half of the state

Approximately 1.2 million customers

2900 circuit miles of transmission

33,000 circuit miles of distribution



Kansas City Power and Light and KCP&L Greater

Missouri Operations

Serve the western and northwester parts of the state

Approximately 520,000 customers total

KCP&L serves 270,000

KCP&L-GMO serves 250,000

3600 circuit miles of transmission

22,000 circuit miles of distribution (includes portions of

neighboring state of Kansas)



Empire District Electric Company

Serves the southwestern portion of the state

Approximately 148,000

1300 circuit miles of transmission lines

6900 circuit miles of distribution lines (includes

portions of neighboring states of Kansas,

Arkansas, and Oklahoma)

Missouri’s Energy Profile


Total Customers – 3,081,211

Investor Owned – 1,926,286

Public/Municipal – 10,836,368

Cooperative – 14,142,514

Total Net Electricity Generation – 91,804,321 MWh

Coal Fired Generation – 82.4%

Nuclear Generation – 10.1%

Natural Gas Fired Generation – 6.1%

Renewables (including hydro) – 1.3%



Total Summer Electric Capacity – 22,004 MW

Ten Largest Plants by Capacity 1. Labadie Coal Plant – 2412 MW

2. Iatan Coal Plant – 1586 MW

3. Rush Island – 1212 MW

4. New Madrid – 1199 MW

5. Callaway Nuclear Plant – 1190 MW

6. Thomas Hill Coal Plant – 1145 MW

7. Sioux Coal Plant – 966 MW

8. Hawthorn – 950 MW

9. Meramec Coal Plant – 948 MW

10. Dogwood Energy Facility Natural Gas Plant – 616 MW



Retail Sales – 82,435,359 MWh

Investor Owned – 57,430,487

Public/Municipal 10,836,368

Cooperative – 14,142,514

Revenue from Retail Sales -- $7.03 Billion

Investor Owned -- $4.74 Billion

Public/Municipal -- $974.25 Million

Cooperative -- $1.31 Billion

Laws Affecting the Electric Sector


Net Metering and Easy Connection Act

Missouri Renewable Energy Standard

Missouri Energy Efficiency Investment Act

Net Metering and

Easy Connection Act

What is net metering?

Who does the statute affect?

Net Metering and

Easy Connection Act

"'Net metering' [is the use of] metering equipment

sufficient to measure the difference between the electrical

energy supplied to a customer-generator by a retail

electric supplier and the electrical energy supplied by the

customer-generator to the retail electric supplier over the

applicable billing period[.]"

Mo. Rev. Stat. § 386.890.2 (5) (emphasis added).

Net Metering and

Easy Connection Act

"'Retail electric supplier' . . . [is] any municipal utility,

electrical corporation . . . or rural electric cooperative . . .

that provides retail electric service . . . ."

Mo. Rev. Stat. § 386.890.2 (7).

Net Metering and

Easy Connection Act

"'Customer-generator' [is] the owner or operator of a qualified electric energy generation unit which: (a) Is powered by a renewable energy resource;

(b) Has an electrical generating system with a capacity of not more than one hundred kilowatts;

(c) Is located on a premises owned, operated, leased, or otherwise controlled by the customer-generator;

(d) Is interconnected and operates in parallel phase and synchronization with a retail electrical supplier and has been approved by said retail electric supplier;

(e) Is intended primarily to offset part or all of the customer-generator’s own electrical energy requirements;

(f) Meets all applicable safety, performance, interconnection, and reliability standards . . . ;

(g) Contains a mechanism that automatically disables the unit and interrupts the flow of electricity back onto the supplier's electricity lines in the event that service to the customer-generator is interrupted[.]"

Mo. Rev. Stat. § 386.890.2 (3) (a) – (g) (emphasis added).

Net Metering and

Easy Connection Act

"'Renewable energy resources' . . . [are] electrical energy

produced from wind, solar, thermal sources, hydroelectric

sources, photovoltaic cells and panels, fuel cells using

hydrogen produced by one of the above-named electrical

energy sources . . ."

Mo. Rev. Stat. § 386.890.2(6)

Renewable Energy Standard

What is it?

What resources qualify?

How are solar resources treated?


In 2008, the citizens of the State of Missouri adopted by

initiative petition, commonly referred to as Proposition C, an

amendment that established Missouri’s Renewable Energy

Standard.

Renewable Energy requirements to be generated or purchased:

2011 to 2013 = No less than 2%

2014 to 2017 = No less than 5%

2018 to 2020 = No less than 10%

2021 and beyond = No less than 15%

Mo. Rev. Stat. § 393.1030.1 (1) – (4).

What is a renewable energy resource? Wind; Solar thermal; Photovoltaic cells/panels; Dedicated Crops; Cellulosic agricultural residues; Plant residues; Methane from landfills, from agricultural operations, or from wastewater

treatment; Thermal depolymerization or pyrolysis for converting waste material to

energy; Clean and untreated wood; Hydropower (not including pumped storage) 10 MW or less; Hydrogen fuel cells; Other resources not including nuclear that become available at a later date and

that are approved by the Department of Natural Resources.

Mo. Rev. Stat. § 393.1025 (5).


Renewable Energy Standard Two percent of the RES requirements must come from solar energy.

Each electric utility must make available to its customers a rebate of at least two dollars for each installed watt for solar electric systems sited on the customer's premises.

$2.00 per watt through June 30, 2014

$1.50 per watt July 1, 2014 through June 30, 2015




$0.00 per watt beyond June 30, 2020

Mo. Rev. Stat. § 393.1030.1 and 393.1030.3 (as amended by HB 142, effective August 28, 2013).

Energy Efficiency Investment Act


• It shall be the policy of the state to value demand-side investments equal to traditional investments in supply and delivery infrastructure and allow recovery of all reasonable and prudent costs of delivering cost-effective demand-side programs. In support of this policy, the commission shall:

• (1) Provide timely cost recovery for utilities;

• (2) Ensure that utility financial incentives are aligned with helping customers use energy more efficiently and in a manner that sustains or enhances utility customers' incentives to use energy more efficiently; and

• (3) Provide timely earnings opportunities associated with cost-effective measurable and verifiable efficiency savings.

• Mo. Rev. Stat. § 393.1075.3 (1) – (3).

Questions?

Robert S. Kenney, Chairman Missouri Public Service Commission

P.O. Box 360 Jefferson City, MO 65102

(573) 751-4132 [email protected]

www.psc.mo.gov

mailto:[email protected]

http://www.psc.mo.gov/

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