DIVERSITY AND SECURITY
Grid Modernization

Develop an effective policy that allows efficient and prudent cost recovery to utilities for making grid modernization improvements that go beyond regular repair and replacement activities, so long as performance metrics are maintained in the interest of the public good and penalties are established for noncompliance.
​

​MEI GRADE

REFERENCE TO 2015 PLAN   |   ACTION TAKEN
 |  SCORE   |   STEPS TO COMPLETION​

​REFERENCE POINT 
​ ​IN 2015 PLAN
- NONE PROVIDED FOR NOW - 

​ACTION TAKEN
A legislative proposal was considered during the 2016 legislative session but did not pass. DE staff provided best practice information and comments in “Working Case to Consider Policies to Improve Electric Utility Regulation” (EW-2016-0313). Several legislative proposals were considered in the 2017 regular session as well as in the first special session held in May 2017. Legislation passed in 2018 (SB 564) could allow utilities to more rapidly invest in grid modernization: Section 393.1400, RSMo. permits electric corporations to opt into plant-in-service accounting.​ ​

WHO TOOK ACTION​

.MEI GRADE / SCORE ​

MEI RATIONALE FOR GRADE
Issue only impacts IOUs. SB 564 addresses issue.

​​STEPS TO COMPLETION
Completion would involve improving effectiveness of passed legislation (likely through rulemakings.

Grid modernization legislation should require consumer
education programs targeted
​at the energy efficiency, demand response, and dynamic pricing elements of grid modernization activities.
​

​MEI GRADE

REFERENCE TO 2015 PLAN   |   ACTION TAKEN
 |  SCORE   |   STEPS TO COMPLETION​

​REFERENCE POINT 
​ ​IN 2015 PLAN
- NONE PROVIDED FOR NOW - 

​ACTION TAKEN
Advocated for consideration of this legislative issue in “Working Case to Consider Policies to Improve Electric Utility Regulation” (EW-2016-0313). ​

WHO TOOK ACTION​

​​MEI GRADE / SCORE ​​

​MEI RATIONALE FOR GRADE
Two of Mo IOUs will use metric to require this activity. ​​

​​STEPS TO COMPLETION
Further progress steps include exploring, in the context of rulemaking and rate cases, how the implementation of grid modernization can best provide adequate consumer education and protection.​
​
​​WHO IS IN CONTROL OF DESTINY

Legislation should consider both incentives for meeting minimum reliability standards and penalties for falling short of goals to better align utility, state, and customer motivations.
​

​MEI GRADE

REFERENCE TO 2015 PLAN   |   ACTION TAKEN
 |  SCORE   |   STEPS TO COMPLETION​

​REFERENCE POINT 
​ ​IN 2015 PLAN
- NONE PROVIDED FOR NOW - 

​ACTION TAKEN
Considered during 2016 legislative session as amendment to energy bills. Provided best practice information and comments in “Working Case to Consider Policies to Improve Electric Utility Regulation” (EW-2016-0313)​.

WHO TOOK ACTION​

​​MEI GRADE / SCORE ​​

​MEI RATIONALE FOR GRADE
Issues has been discussed/considered but failed to move fwd.

​​STEPS TO COMPLETION
Further progress steps include participating in dialogues with all affected stakeholders to determine if consensus recommendations can be developed and enacted (through statute or rule) to limit the use of RECs for RES compliance.
​
​​WHO IS IN CONTROL OF DESTINY

The PSC, in anticipation of smart grid deployment, should create guidelines or rules about how performance-based rates should
​be structured.
​

​MEI GRADE

REFERENCE TO 2015 PLAN   |   ACTION TAKEN
 |  SCORE   |   STEPS TO COMPLETION​

​REFERENCE POINT 
​ ​IN 2015 PLAN
- NONE PROVIDED FOR NOW - 

​ACTION TAKEN
DE staff researched other state policies and leading practices regarding PBR in preparation for 2017 and 2018 legislative sessions. DE filed comments in EW-2016-0313 regarding PBR. ​

WHO TOOK ACTION​

​​MEI GRADE / SCORE ​​

​MEI RATIONALE FOR GRADE
Only initial work taken. Need engagement of responsible parties. ​

​​STEPS TO COMPLETION
​Further progress steps include developing and considering implementation of frameworks to evaluate rate structures that include performance-based metrics to hold utilities accountable for delivering customer benefit and value from grid modernization and possibly improving statutory incentive provisions to incorporate more flexible performance-based metrics.
​
​​WHO IS IN CONTROL OF DESTINY