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HB 2248

Modifies provisions for utility growth projects

2026 Regular Session Introduced by Josh Hurlbert

Missouri HB 2248 replaces the large-load discount with a 35% incremental load discount capped at 75 MW for 5 years, ensuring costs don’t exceed variable cost to serve.

HCS Reported Do Pass (H) - AYES: 18 NOES: 1 PRESENT: 0
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Bill Summary · HB 2248

HB 2248 (2026) — Missouri: Utility Growth Projects

Overview
- Purpose: Adjust the structure and terms of electric utility growth-project discounts, replacing the current framework with new limits and criteria. The bill aims to modernize incentives for large new loads while restricting project size and duration of discounts, and by repealing the prior method for calculating the variable cost to serve new load.
- Sponsor: Rep. Hurlbert; Co-sponsor: Rep. Josh Hurlbert
- Committee action: Do Pass with House Committee Substitute (HCS) by Utilities, 18-1

Key Provisions and Changes
- Discount structure (subsection 1):
- Replaces the existing program where large new loads (over 10 MW with high load factor) could receive a discount tied to 120% of the cost to serve for up to 10 years.
- New framework sets:
- A discount of 35% for incremental new load.
- Project size cap: 75 MW maximum for eligibility (previously no explicit cap on that range, but the bill now limits growth-project eligibility to 75 MW).
- Discount duration: 5 years (previously up to 10 years).
- The discount is contingent on meeting criteria and is designed to ensure the discount does not exceed the utility’s variable cost to serve, with a mechanism to determine discount percentage to cover only allowable costs. If the new load would cause revenues to exceed the variable cost, the discount percentage is adjusted accordingly to target recoverability of variable costs.

  • Elimination of a prior methodology (subsection 1):

    • Repeals the current method for determining the variable cost to serve new load.

  • Eligibility and nonqualifying facilities (subsection 3):

    • An applicant must not be classified as a “nonqualifying facility.”
    • The bill defines nonqualifying facilities to include certain data-center-like structures (as defined in the bill) with servers in multiple buildings connected via fiber for redundancy.

  • Tariff and cost allocation:

    • Discounted base-rate components apply to incremental load; other tariff terms may be added by the electrical utility tariff, subject to commission approval.
    • If incremental demand is not separately metered, the utility’s determination controls.
    • Annual verification of incremental demand is required to confirm continued qualification.

  • Revenue treatment and rate design (subsection 2):

    • In general rate proceedings after Aug. 28, 2022, the difference in revenues from discounted rates versus no-discount does not get imputed into the utility’s revenue requirement.
    • Instead, discounted-rate revenues and their effects are allocated to all customer classes through a uniform percentage adjustment to each class’s revenue responsibility.
    • If a customer’s data shows failure to meet criteria within 24 months of initial discounts, they lose eligibility; after four years, if nonqualifying demand remains below 10,000 kW, the customer’s qualification reverts to the other tier.

  • Expiration of authority (subsection 4):

    • The utility’s authority to offer these discounts ends when the deferrals authorized by a related statute (section 393.1400) expire.

Impacts and Stakeholders
- Affected entities: Electric utilities (and their customers), large load customers (10–75 MW range), and customers subject to the 35% incremental-discount model.
- Data centers excluded? The bill creates a defined “nonqualifying facility” category that could exclude some data-center configurations.
- Ratepayers: The bill directs any shortfall from discounts to be allocated across all customer classes, which could affect non-participating customers.

Fiscal and Administrative Aspects
- Fiscal notes show no expected net impact on state or local funds.
- No change in FTE requirements anticipated.

Notes
- Public testimony raised concerns about ratepayer equity and potential legal challenges related to cost allocation and fixed-cost contributions; proponents argued updates modernize incentives and focus on job-creating growth. The bill’s structure remains subject to commission review and potential challenges under traditional rate-making principles.

Compiled from official sources — confirm details with the bill’s official record.

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