Missouri Revised Statutes













Chapter 386

Public Service Commission

←386.310

Section 386.315.1

386.320→

August 28, 2015

Commission shall not change terms of employment subject to collective bargaining or certain accounting standards--use of accounting standard by utility, requirements--tariff filing allowed, conditions--examination of tariffs, review period.

386.315. 1. In establishing public utility rates, the commission shall

not reduce or otherwise change any wage rate, benefit, working condition, or

other term or condition of employment that is the subject of a collective

bargaining agreement between the public utility and a labor organization.

Additionally, the commission shall not disallow or refuse to recognize the

actual level of expenses the utility is required by Financial Accounting

Standard 106 to record for postretirement employee benefits for all the

utility's employees, including retirees, if the assumptions and estimates

used by a public utility in determining the Financial Accounting Standard 106

expenses have been reviewed and approved by the commission, and such review

and approval shall be based on sound actuarial principles.



2. A public utility which uses Financial Accounting Standard 106 shall

be required to use an independent external funding mechanism that restricts

disbursements only for qualified retiree benefits. In no event shall any

funds remaining in such funding mechanism revert to the utility after all

qualified benefits have been paid; rather, the funding mechanism shall

include terms which require all funds to be used for employee or retiree

benefits. This section shall not in any manner be construed to limit the

authority of the commission to set rates for any service rendered or to be

rendered that are just and reasonable pursuant to sections 392.240, 393.140

and 393.150.



3. Any public utility which was the subject of a rate proceeding

resulting in the issuance of a report and order subsequent to January 1,

1993, and prior to August 28, 1994, directing or permitting the establishment

of new rates by such utility, may file one set of tariffs modifying its rates

to reflect the revenue requirement associated with the utility's expenses for

postretirement employee benefits other than pensions, as determined by

Financial Accounting Standard 106, including the utility's transition benefit

obligation, regardless of whether the deferral or immediate expense

recognition method was used, if such utility is funding the full extent of

its Financial Accounting Standard 106 obligation at the time such tariffs are

filed. The tariffs shall reflect the annual level of expenses as determined

in accordance with Financial Accounting Standard 106. The commission may

suspend such tariffs for no longer than one hundred fifty days to examine the

assumptions and estimates used and to review and approve the expenses

required by Financial Accounting Standard 106, including an amortization of

the transition benefit obligation over no greater amortization period than

twenty years based upon sound actuarial principles, and to address any rate

design issues associated with the utility's Financial Accounting Standard

106-based revenue requirement. The commission shall not examine any other

revenue requirement issues.



(L. 1993 S.B. 289, A.L. 1994 H.B. 1405)







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