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State Energy Efficiency Policy Database
Missouri
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(Research Report - 3/5/2013)
(Research Report - 5/16/2012)
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(Press Release - 10/3/2012)
(Press Release - 5/16/2012)
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Missouri Utility Policies
Missouri seemed poised for a major transformation in the implementation of utility-sector energy efficiency programs in 2009 when the state adopted SB 376, the Missouri Energy Efficiency Investment Act (MEEIA), which, among other provisions, requires Missouri’s investor-owned electric utilities to capture all cost-effective energy efficiency opportunities. Since the passage of MEEIA and the finalization of its accompanying rules, progress towards implementation has hit major barriers as regulators, utilities, and stakeholders try and come to consensus on how to move forward with comprehensive utility programs.
In January 2012, Ameren Missouri filed a three-year energy efficiency plan that calls for about $145 million in energy efficiency investments over three years, which would substantially improve its program offerings. The plan's approval is pending. KCP&L also filed a three-year plan, but subsequently withdrew it over concerns over rate impacts.
The central barrier to full energy efficiency program implementation, according to some in the state, is that as the MEEIA rules are written, utilities may not recover lost revenues or program costs quickly enough. Others simply argue that the state’s IOUs are reluctant to support energy efficiency no matter what the regulations may be. Whatever the case may be, a great deal of uncertainty remains as to whether IOUs will embrace energy efficiency moving forward, or if the PSC will use more “stick” than “carrot” and implement savings targets.
Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.
Prior to the developments of the past few years, Missouri has historically had limited energy efficiency programs for utility customers. While fundamental rules have been in place since the early 1990s for integrated resource planning (IRP) and demand-side management (DSM), such rules had not yielded significant levels of utility spending on DSM programs until very recently.
For further reading, in August 2011, as part of the State Clean Energy Resource Project, ACEEE completed the report Missouri's Energy Efficiency Potential: Opportunities for Economic Growth and Energy Sustainability.
Links:
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March 28, 2013
The eight energy utilities rate-regulated by the Missouri Public Service Commission have implemented an array of DSM programs. Nearly all of Missouri Cooperative Electric Companies offer rebates for energy audits, Energy Star® appliances (window air conditioners, dishwashers, clothes dryers), water heaters, ground source heat pumps, air source heat pumps, and dual source heat pumps.
In January 2012, Ameren Missouri filed a three-year energy efficiency plan that calls for about $145 million in energy efficiency investments over three years, which would substantially improve its program offerings. The plan's approval is pending. KCP&L also filed a three-year plan, but subsequently withdrew it over concerns over rate impacts.
The Missouri Energy Efficiency Investment Act of 2009 allows customers to opt-out of all cost-recovery mechanism (CRM) fees if they have a demand of at least 5,000 kW in the previous twelve months, if they are an interstate pumping station of any size, or if they show they a "comprehensive" demand or energy efficiency program in place that is saving an amount at least equal to utility-provided programs and have a demand of at least 2,500 kW. Customers opting out under the 2,500 kW/comprehensive demand-side management plan category must submit their plan to the Missouri Public Service Commission for review. Customers wishing to opt out under either of the other categories simply provide notification to their utilities that they wish to opt out. There is currently no follow-up or ongoing monitoring of the efficiency investments made by any opt-out customers due to a dispute among interested parties regarding statutory authority. More information on large customer self-direct programs can be found in the ACEEE report, Follow the Leaders: Improving Large Customer Self-Direct Programs.
Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.
Links:
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March 28, 2013
The eight energy utilities rate-regulated by the Missouri Public Service Commission have implemented a wide array of DSM programs (see DSIRE database). Nearly all of Missouri Cooperative Electric Companies offer rebates for energy audits, Energy Star® appliances (window air conditioners, dishwashers, clothes dryers), water heaters, ground source heat pumps, air source heat pumps, and dual source heat pumps. Some municipal electric providers are also providing energy efficiency rebates, most notably Springfield and Columbia.
Recently, some regulated electric utilities have sought to curtail investment in DSM programs. However, The Missouri Public Service Commission has directed them to continue. Please refer to the Report and Orders issued in the recent KCP&L and KCP&L-Greater Missouri Operations rate cases (ER-2010-0355 and ER-2010-0356, linked below.)
Reported budgets for energy efficiency programs for 2011 are in the State Spending and Savings Tables.
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November 5, 2012
Missouri has a voluntary EERS in place. SB 376 set out voluntary goals for electric utilities to achieve 0.3% annual savings in 2012, ramping up annually to 0.9% in 2015 and 1.7% in 2019 for cumulative annual savings of 9.9% by 2020. The standard also includes peak demand reduction goals.
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July 19, 2012
In 2011 the Missouri Public Service Commission promulgated rules that authorize utilities to file for recovery of lost revenues. (See 4 CSR 240-3.163, 4 CSR 240-3.164, 4 CSR 240-20.093, and 4 CSR 240-20.094)
One gas utility, Atmos, has been granted a straight-fixed-variable rate structure. (See case no. GR-2006-0387. Feb. 2007 PSC order).
Links:
- Missouri Public Service Commission docket search.
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October 10, 2012
The rule implementing SB 376 provides for more timely cost recovery of DSM program costs by allowing adjustments to the funds collected between rate cases. Currently costs are recovered over a 6 or 10 year period. The SB 376 rule allows a regulated electric utility to propose performance incentives that are based on net shared benefits from the DSM programs it implements. Any utility incentive component of a DSIM shall be based on the performance of demand side programs approved by the commission in accordance with 4 CSR 240-20.094 Demand- Side Programs and shall include a methodology for determining the utility’s portion of annual net shared benefits achieved and documented through EM&V reports for approved demand-side programs. Each utility incentive component of a DSIM shall define the relationship between the utility’s portion of annual net shared benefits achieved and documented through EM&V reports, annual energy savings achieved and documented through EM&V reports as a percentage of annual energy savings targets, and annual demand savings achieved and documented through EM&V reports as a percentage of annual demand savings targets. Utilities may also propose recovery of lost revenues as measured and verified through EM&V prior to recovery on a restrospective basis.
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March 28, 2013
The Missouri Energy Efficiency Investment Act of 2009 (MEEIA) established a new standard in the state for electric utility investment in demand side management: The Act directs the Missouri Public Service Commission to permit electric corporations to implement commission-approved demand-side programs proposed pursuant to this section with a goal of achieving all cost-effective demand-side savings. The Missouri PSC also completed a revision of its IRP rules in Case No. EX-2010-0254 and requires demand side and supply side measures to be evaluated on an equivalent basis.
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August 8, 2011
- Cost-effectiveness test(s) used: TRC, PCT, SCT, RIM
- Uses a deemed savings database: no
The evaluation of ratepayer-funded energy efficiency programs in Missouri relies on regulatory orders (4 CSR 240-3.163, 4 CSR 240-20.093). Evaluations are administered by both the utilities and the Missouri Public Service Commission. Missouri has formal requirements for evaluation articulated in 4 CSR 240-3.163, 4 CSR 240-20.093. Evaluations for each of the utilities are conducted. Missouri uses four of the five classic benefit-cost tests identified in the California Standard Practice Manual. These are the Total Resource Cost (TRC), Participant (PCT), Social Cost (SCT), and Ratepayer Impact Measure (RIM). Missouri specifies the TRC to be its primary test for decision making. The benefit-cost tests are required for portfolio and total program level screening. The rules for benefit-cost tests are stated in Section 393.1075.4 RSMo, 4 CSR 240-20.094(3)(A) and 4 CSR 240-3.164(2)(B) and 4 CSR 240-3.163(7).Some exceptions exist for low-income programs, pilots, and new technologies.
Links:
- Authority: 4 CSR 240-3.163, 4 CSR 240-20.093
- Authority: Section 393.1075.4 RSMo
- Authority: 4 CSR 240-20.094(3)(A) and 4 CSR 240-3.164(2)(B) and 4 CSR 240-3.163(7).
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March 27, 2013