At a session of the Public Service
Commission held at its office in Jefferson City on the 26th day of August,
2015.
In the Matter of the First Prudence Review of )
KCP&L Greater Missouri Operation’s Company )
Implementation of Energy Efficiency Programs in ) File No. EO-2015-0180
Furtherance of the Missouri Energy Efficiency )
Investment Act (MEEIA) )
ORDER
APPROVING STAFF’S PRUDENCE REVIEW
Issue Date: August 26, 2015 Effective Date: September 25, 2015
Under Missouri law[1] the Commission must allow recovery of all reasonable and prudent costs of delivering cost-effective demand-side programs. On November 15, 2012, the Commission issued an Order Approving Non-Unanimous Stipulation and Agreement Resolving KCP&L Greater Missouri Operations Company’s MEEIA Filing.[2] The Commission’s approval authorized KCP&L Greater Missouri Operations Company (GMO) to implement a three-year plan, which included 15 demand-side programs and a demand-side programs investment mechanism (DSIM).
Commission rule 4 CSR 240-20.093(10) requires the Commission to conduct a prudence review of the utility’s DSIM costs no less than every 24 months. On February 3, 2015, the Staff of the Commission filed a notice of its first prudence audit of GMO’s MEEIA[3] Programs’ costs. Rule 4 CSR 240-20.093(10) also requires the Staff of the Commission to file a report of its audit within 150 days of initiating the audit and that the Commission issue an order regarding Staff’s audit within 60 days thereafter.
Staff filed its report on July 6, 2015. With the exception of minor corrections to the interest calculations related to GMO’s demand-side programs’ costs and to its throughput disincentive cost recovery mechanism, Staff found no imprudence by GMO for the period of January 26, 2013, through December 31, 2014. The interest calculations totaled $707.07, and GMO has corrected its accounting records accordingly.
Upon review of Staff’s report, the Commission finds that the costs associated with GMO’s demand-side programs were reasonable, prudent and consistent with Section 393.1075 RSMo. The Commission will therefore approve Staff’s evaluation of GMO’s demand-side programs.
THE COMMISSION ORDERS THAT:
1. The Staff of the Commission’s report, reflecting its audit of the costs incurred by KCP&L Greater Missouri Operations Company from January 26, 2013, through December 31, 2014, in compliance with the Missouri Energy Efficiency Investment Act for electric operations, is approved.
2. This order shall become effective on September 25, 2015.
3. This file shall be closed on September 26, 2015.
BY THE COMMISSION
Morris L. Woodruff
Secretary
Hall, Chm.,
Stoll, Kenney, and
Rupp, CC., concur;
Coleman, C.,
absent.
Jones,
Senior Regulatory Law Judge