MO SB677

Repeals and replaces section 386.266, RSMo, to eliminate provisions allowing electrical, gas, or water corporations to request periodic rate adjustments for environmental compliance costs up to 2.5% annually and provisions for gas corporations to adjust rates for non-gas revenue effects from weather or conservation changes.

Retains authority for electrical corporations to apply for interim energy charges and periodic rate adjustments to reflect increases and decreases in prudently incurred fuel and purchased-power costs, including transportation.

Requires the Public Service Commission to approve, modify, or reject any adjustment mechanism only after a full hearing in a general rate proceeding and must find the mechanism provides fair return on equity, includes annual true-ups, and requires utilities to file a general rate case within four years.

Mandates adjustment mechanisms include provisions for prudence reviews at least every 18 months and require refund of any imprudently incurred costs with interest at the utility's short-term borrowing rate.

Directs the Public Service Commission to appoint a task force of all interested parties to study and make recommendations on cost recovery and implementation of conservation and weatherization programs for electrical and gas corporations.