Dear Senator Quick:
This opinion letter is in response to your request for our interpretation of the meaning of certain language in Section
Section
260.805 . Electric suppliers to purchase electricity generated, rate allowable. — When any portion of a waste to energy facility is owned, operated or leased by a governing body, the electrical supplier serving the area shall be required to enter into long-term contracts to purchase the electricity generated by the waste to energy facility at the same rate the utility charges the governing body for energy used. Provided, however, that the rate paid by the electric supplier for such energy shall be such that no other customer class or classes shall ever directly or indirectly subsidize any part of the cost of owning, operating or maintaining the trash to energy facility, unless they receive a direct or indirect benefit.
Your first question asks:
In the first sentence of Section
260.805 , RSMo, does the phrase "the same rate the utility charges the governing body for energy used," mean the total charges from the utility to the governing body for electricity purchased from the utility including the rates for electric capacity which vary with the time of purchase, and the rate for electric energy actually consumed?
We answer in the affirmative. The word "energy" appears no fewer than five times in Section
Your second question asks:
In the second sentence of Section
260.805 , RSMo, what is meant by the phrase "directly or indirectly subsidize any part of the cost of owning, operating or maintaining the [waste] to energy facility?"
We believe that the quoted excerpt from the second sentence in Section
Your third question asks:
Finally, in the second sentence of Section
260.805 , RSMo, does the phrase "direct or indirect benefits [sic]" to other customers or classes of customers include the societal benefits of more efficiently, economically and environmentally benignly treating wastes generated by residents of Missouri as the true test of whether such customers of classes of customers receive a direct or indirect benefit from the waste to energy facility?
We answer in the negative. We do not believe that the societal benefit of more efficient, economical or environmentally benign treatment of wastes generated by residents of Missouri is the kind of "direct or indirect benefit" contemplated by the concluding clause in Section
Very truly yours,
WILLIAM L. WEBSTER Attorney General
