Utilities committee adopts substitute merging HB 2122 and HB 1626, adds CWIP clawback; passes 12–7

JEFFERSON CITY — The House Committee on Utilities voted to adopt a committee substitute that combines House Bills 2122 and 1626 and to send that substitute forward with a recommendation of ‘do pass.’ The committee adopted the substitute and then voted the measure do pass by roll call, 12 ayes to 7 noes.

Representative Black, who explained the substitute, said the measure has two primary changes: combining the earlier bills and inserting a clawback provision that mirrors language in a Senate bill approved last year. Black read the substitute’s language saying that "base rate recoveries arising from the inclusion of construction work in progress and base rates are subject to refund together with interest on the refunded amount" if the Public Service Commission later determines construction costs were "imprudently incurred" or if the project is "not placed in service within a reasonable amount of time as determined by the commission." He said the change brings Missouri’s language into alignment with the Senate version and argued removing Missouri’s CWIP ban is necessary for the state to remain competitive with neighboring states.

Representative Taylor said he planned to vote no, expressing concern about unknown costs, uncertain timelines and technology questions that he said make the changes premature. "We're never going to know everything but right now we have unknown costs, unknown timelines," Taylor said, and added he would vote against the substitute.

Representative Costello said earlier clarifications — including that the bill would include a 600-megawatt cap — eased his concerns and that including clawback provisions shifts risk back to the utilities if projects fail or incur imprudent costs. He said he intended to support the bill.

Madam Clerk called the roll; after members recorded their votes, Chair Brumley announced that by a vote of 12 ayes and 7 noes, the committee had voted the House Committee substitute for House Bills 2122 and 1626 do pass.

Next steps: The committee forwarded the substitute with the 'do pass' recommendation; further floor action in the House will determine whether the substitute becomes law.

Actions and vote: The committee adopted the committee substitute and then voted the committee substitute for House Bills 2122 and 1626 'do pass' (roll call 12–7).