Missouri PSC Seeking Comments on Renewable Standard

The Missouri Public Service Commission is seeking comments from stakeholders and the general public on possible legislative and/or regulatory ways to improve and clarify the Renewable Energy Standard Law in Missouri.

In June, the Public Service Commission, in a 3-2 vote, adopted rules that set the structure, operation and procedures for increasing the amount of electricity generated from renewable sources of energy and also to further diversify the energy portfolio of Missouri’s four regulated electric companies.  The rules were designed to carry out Proposition C, approved by Missouri voters in November of 2008.

The rules provided the procedures by which utilities are to meet the statutory obligations for renewable energy.  Missouri law requires that by 2011, electric companies must either generate or purchase at least 2 percent of the electricity they sell from renewable sources.  That percentage increases to approximately 15 percent by 2021.  The electric companies are required to meet those required percentages by either generating the electricity through the use of renewable energy sources or by purchasing renewable energy credits.  Under the rules, at least 2 percent of the renewable energy must be from solar.

In addition, the Commission determined that if a utility company needs to purchase renewable energy credits to meet rule requirements, the renewable energy associated with those credits must be sold to Missouri customers (known as geographic sourcing).

The Commission-adopted rules were sent to the Joint Committee on Administrative Rules (JCAR) which disallowed the language regarding geographic sourcing.  Therefore, uncertainty regarding that requirement remains.

The Commission is asking stakeholders to resume discussions in order to try and resolve the single issue of geographic sourcing through developing legislative proposals and regulatory options that will promote the development of renewable energy in Missouri while protecting retail customers.

Stakeholders, interested parties and the general public have been asked to submit initial written comments to the Public Service Commission by October 1, 2010.  Comments should reference the case number (EW-2011-0031).


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