Missouri Public Service Commission 101. Missouri Public Service Commission Jefferson City, MO

Transcription

1 101 Missouri Public Service Commission Jefferson City, MO

2 101 and Power Sector Overview Robert S. Kenney Chairman December 2014 Missouri Public Service Commission Jefferson City, MO

3 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

4 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

5 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

6 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

7 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

8 Who Works at the PSC? The PSC employs experts in many areas Economists Management and Financial specialists Accountants/Auditors Engineers Attorneys

9 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

10 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

11 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

12 General Counsel/Secretary General Counsel (Mo. Rev. Stat ) Secretary (Mo. Rev. Stat ) 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)

13 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)

14 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

15 Regulatory Review Division Utility Services Department Engineering Management Services Financial Analysis Unit Procurement Analysis Unit Auditing Unit

16 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

17 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

18 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

19 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

20 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

21 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

22 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

23 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

24 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

25 Power Sector Overview Missouri Public Service Commission Jefferson City, MO

26 Missouri Demographic Information Population: 6,044,171 (2013 Estimate) Unemployment Rate: 5.9% (as of October 2014) Geography: 68, square miles Gross State Product: $276,345,000, Manufacturing $36,282,000,000 Utilities $5,619,000,000 Industry: Aerospace Transportation Food Processing Light Manufacturing Beer

27 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

28 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

29 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

30 Missouri s Regulated Electric Utilities 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, circuit miles of transmission 22,000 circuit miles of distribution (includes portions of neighboring state of Kansas)

31 Missouri s Regulated Electric Utilities Empire District Electric Company Serves the southwestern portion of the state Approximately 148, circuit miles of transmission lines 6900 circuit miles of distribution lines (includes portions of neighboring states of Kansas, Arkansas, and Oklahoma)

32 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%

33 Missouri s Energy Profile 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

34 Missouri s Energy Profile 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 -- $ Million Cooperative -- $1.31 Billion

35 Laws Affecting the Electric Sector Net Metering and Easy Connection Act Missouri Renewable Energy Standard Missouri Energy Efficiency Investment Act

36 Net Metering and Easy Connection Act What is net metering? Who does the statute affect?

37 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 (5) (emphasis added).

38 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 (7).

39 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 customergenerator; (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 customergenerator is interrupted[.]" Mo. Rev. Stat (3) (a) (g) (emphasis added).

40 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 (6)

41 Renewable Energy Standard What is it? What resources qualify? How are solar resources treated?

42 Renewable Energy Standard 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 (1) (4).

43 Renewable Energy Standard 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 (5).

44 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 $1.00 per watt July 1, 2015 through June 30, 2016 $0.50 per watt July 1, 2016 through June 30, 2019 $0.25 per watt July 1, 2019 through June 30, 2020 $0.00 per watt beyond June 30, 2020 Mo. Rev. Stat and (as amended by HB 142, effective August 28, 2013).

45 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 (1) (3).

46 Questions? Robert S. Kenney, Chairman Missouri Public Service Commission P.O. Box 360 Jefferson City, MO (573)