PSC Approves Agreement for Spire Renewable Natural Gas Project - pr-27-30

The first request was for a certificate of convenience and necessity (CCN) to construct, install, own, operate, maintain and otherwise control and manage equipment and facilities for the production, processing, pipeline interconnection, and distribution of RNG. The second request was to implement an RNG program.

The KC Water Project consists of construction of a biogas upgrading facility, a meter and regulation interconnect, and a transmission pipeline to Spire’s distribution system – all of which will be constructed/installed in Jackson County, Missouri. The project will capture biogas generated by the City of Kanas City’s Blue River Wastewater Treatment Plant, clean the biogas, and inject the resulting RNG into Spire’s western Missouri distribution system.

Under Missouri statute and Missouri Public Service Commission rule , investor-owned natural gas corporations can implement RNG programs but must first seek Commission approval. This project is the first ever RNG project approved by the Commission, and it notes that the agreement contains provisions for customer protection against any potentially excessive costs associated with the program.

Highlights of the Approved Agreement:

• Provides limits to the total capital investment for the project that Spire is allowed seek recovery for in a future rate case.
• Sets limits for the amount of associated fees paid by Spire that are allowed to be recovered in a future rate case. Any fee expenses above the designated limit will be borne by shareholders.
• Sets the Renewable Identification Number market value to be used in all future Spire rate cases for as long as the KC Water Project remains a Spire Missouri asset. If the actual market value falls below the agreed upon value, Spire must cover the shortfall.