1. This section applies beginning January 1, 2024, to an electrical corporation that has elected to exercise any option under section 393.1400 and shall continue to apply to such electrical corporation until such electrical corporation’s permission to make the deferrals authorized by subsection 2 of section 393.1400 expires.

2. That part of the electrical corporation’s retail revenue requirement used to set the electrical corporation’s base rates in each of the electrical corporation’s general rate proceedings that are concluded on or after August 31, 2023, that consists of revenue requirement arising from inclusion in rate base of the section 393.1400 regulatory asset balance shall not exceed the revenue requirement impact cap. If inclusion in rate base of the full balance of the subject section 393.1400 regulatory asset would cause the electrical corporation to exceed the revenue requirement impact cap, that part of the balance necessary to prevent inclusion of the full balance from causing an exceedance of the revenue requirement impact cap shall not be included in rate base and the section 393.1400 regulatory asset balance shall be reduced accordingly as a penalty.

3. For purposes of this section, the following terms shall mean:

(1) “Commission”, the public service commission;

(2) “Electrical corporation”, the same as defined in section 386.020, but shall not include an electrical corporation as described in subsection 2 of section 393.110;

(3) “Rate-base cutoff date”, the date rate-base additions are accounted for in a general rate proceeding. In the absence of a commission order that specifies the rate-base cutoff date, such date as reflected in any jointly proposed procedural schedule submitted by the parties in the applicable general rate proceeding, or as otherwise agreed to by such parties, shall be used;

(4) “Revenue requirement impact cap”, the product of (i) one-twelfth of two and one-half percent, multiplied by (ii) the number of months that have elapsed from the effective date of new base rates in the electrical corporation’s most recently completed general rate proceeding to the effective date of new base rates in the general rate proceeding in which the cap is being applied, with that product to be multiplied by the retail revenue requirement used to set base rates in the electrical corporation’s most recently completed general rate proceeding concluded prior to the general rate proceeding in which the cap is being applied;

(5) “Subject section 393.1400 regulatory asset”, deferrals under section 393.1400 from the rate-base cutoff date in the electrical corporation’s prior general rate proceeding to the rate-base cutoff date in the current general rate proceeding in which the cap reflected in subsection 2 of this section is being applied.