Missouri Gov. Mike Kehoe has signed a bill into law that will change the way utility rates are set.
SB 4 will give utility companies the authority to use a so-called “future test year” model for setting rates based on projected costs. It will also let private electric companies regulated by the Missouri Public Service Commission to seek rate increases for construction work in progress on new natural gas-generating plants.
“With this legislation, Missouri is well-positioned to attract new industry, support job growth, and maintain affordable, reliable energy for our citizens,” Kehoe said in a written statement. “This is about powering Missouri for Missourians and not relying on other states and countries to produce our power. This legislation strengthens our economic development opportunities, helps secure our energy independence, and provides consumer protections to build a resilient energy future for generations to come.”
The legislation received bipartisan support and bipartisan opposition. The arguments made in support of the bill centered around a need to give a substantial boost to the electric grid for reliability purposes. The arguments made against the bill centered around the impact it could have on customer utility bills.
State Sen. Tracy McCreery, D-Olivette, said utility bills for residential customers will go up.
“Ameren Electric, Missouri American Water, Empire Electric, Liberty Water and Sewer, Ameren Gas. Evergy West, and Spire…we’re going to be adding additional rate increases,” she said during Senate debate of the bill in February.
State Sen. Joe Nicola, R-Grain Valley, also spoke against the bill on the Senate floor.
“We do know our rates are going to be going up,” he said. “I’m extremely concerned, once again, because, in my district, I have many elderly people on fixed incomes.”
But the new law requires Missouri utility companies to wait 72 hours before disconnecting a customer’s service for nonpayment when the temperature is expected to fall below 32 degrees or soar above 95 degrees. Current law allows disconnection after 24 hours. The new law is set to take effect August 28.
Alisa Nelson contributed to this report.
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