Press Release

FOR IMMEDIATE RELEASE -- August 24, 2023
Contact: Kevin Kelly (573) 751-9300
PR-24-20

PSC Approves Agreement Reached in Spire East ACA Case

JEFFERSON CITY---The Missouri Public Service Commission has approved an agreement reached among parties which resolves all issues related to a case involving Spire Missouri’s (Spire Missouri East) Actual Cost Adjustment (ACA) for the 2019-2020 ACA period. The 2019-2020 Spire Missouri ACA period contained the first costs incurred for service to Spire Missouri under its contract with its affiliate, Spire STL Pipeline.

The Commission previously determined in case GR-2017-0215 that a future ACA proceeding was the appropriate proceeding to address the Spire STL Pipeline transaction, and the Commission designated this ACA review as the appropriate review to address the prudence of those pipeline transportation costs.

The agreement filed in this case was submitted by the Public Service Commission Staff (PSC Staff), the Office of the Public Counsel (OPC), Spire Missouri, Inc., Consumers Council of Missouri and the Environmental Defense Fund. The Midwest Energy Consumers Group, while not a signatory to the agreement, does not object to the agreement.

The agreement approved by the Commission includes:
  • Customer Assistance Program Funding. Spire Missouri will commit $500,000 per year, for five years, of additional shareholder funding for low-income heating assistance (for a total of $2.5 million), with funding to begin on October 1, 2023. The allocation of the $500,000 per year is addressed in the Weatherization and Bill Assistance paragraphs below.
  • Weatherization. Spire Missouri will contribute $300,000 to agencies focused on weatherization for outreach efforts and weatherization training and certification for Community Action Agency employees.
  • Bill Assistance. Starting on October 1, 2023, Spire Missouri will contribute an additional $200,000 in annual funding to its Payment Partner Program and/or the Critical Needs Program. This additional commitment terminates after five years. Spire Missouri also commits to filing a tariff for a new program similar to Ameren Missouri’s Keeping Cool Program in its next general rate case.
  • Exclusion of Spire STL Pipeline LLC Litigation Costs In Utility Rates. Under the agreement approved by the Commission, Spire Missouri will not seek to recover in rates any litigation costs associated with Federal Energy Regulatory Commission (FERC) certificates of convenience and necessity for the Spire STL Pipeline LLC, and associated appeals. All such costs within the test year of the Company’s next general rate case will be identified and excluded from the revenue requirement.
  • Integrated Resource Plan. Beginning in 2024 and no later than 12 months following Commission approval of the agreement, Spire Missouri will file, in a formal docket, an Integrated Resource Plan, to be updated at least once every three years in a formal docket. The IRP is to include a Long-Term Climate Plan and a Non-Pipes Alternative Pilot to identify cost-effective and environmentally beneficial pathways to meet customer demand.
  • New Recordkeeping Requirements for Capacity Projects. For all future proposed interstate transmission projects on which the Company intends to be an anchor shipper, Spire Missouri’s Gas Supply Department will coordinate a Request for Proposal (RFP) (or other competitive bid process) and maintain copies of all RFPs sent, all responses received, relevant analysis of responses, and documents demonstrating the rationale for any decisions to move forward with a project. These documents will be maintained together and be available for review by the PSC Staff and OPC upon request in an appropriate ACA case.
  • GHG Emissions Reporting. Spire Missouri will continue to report Scope 1 and Scope 2 emissions reductions to baseline as part of its Sustainability Report. The Company will report reductions by program for pipeline replacement, energy efficiency and other discrete programs as appropriate/feasible.
The agreement provides that the Signatories will not make any argument relating to the prudence of Spire Missouri’s contract on STL Pipeline, risks related to the FERC certificates of convenience and necessity for the STL Pipeline, or customer impacts from threats to STL Pipeline service associated with the FERC certificate of the STL Pipeline, in any subsequent Spire initiated general rate case.

“After reviewing the Stipulation, the Commission finds that it is a reasonable resolution of the issues contained therein and should be approved,” said the Commission.

Spire Missouri East provides natural gas service to approximately 664,523 customers in the City of St. Louis as well as the Missouri counties of St. Louis, St. Charles, Butler, Iron, Franklin, Jefferson, Madison, Crawford, St. Francois and Ste. Genevieve.
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