HB 1850 Summary

• Establishes the Missouri Energy Efficiency Performance Standard requiring electrical corporations to achieve incremental energy savings ranging from 0.3% in 2012 to 1.9% annually by 2020, with 1% annual peak demand reduction targets.

• Requires gas corporations to achieve natural gas savings of 0.2% of baseline starting January 1, 2013, increasing to 1.5% by January 1, 2019 and thereafter.

• Mandates utilities develop biennial energy efficiency plans including programs for all customer classes, with at least 5% of program funding allocated to evaluation and measurement verification.

• Allows utilities to carry forward excess annual savings to the next year (up to one-third of following year's standard) and establishes penalties of $100 per megawatt-hour for electricity savings shortfalls and $10 per million BTU for natural gas savings shortfalls.

• Requires the Public Service Commission to promulgate rules within nine months, establish a statewide stakeholder collaborative to review programs and performance metrics, and produce comprehensive reports every five years on program effectiveness and recommendations for amendments.