JEFFERSON CITY –– Missouri legislation to break up the electric utility monopoly continues to advance, presenting a free-market alternative to Senate Bill 4 –– legislation that allows utility companies to charge customers to build future power generation projects in the state.
Senate Bill 487, sponsored by Sen. Nick Schroer was heard by the Senate Commerce, Consumer Protection, Energy & the Environment Committee on April 1. Companion legislation, House Bill 417, sponsored by Rep. Don Mayhew, was heard and voted favorably out of the House General Laws committee in March and is awaiting referral to a House Rules Committee.
Both bills would require the electric utilities to compete with electricity generators and suppliers to build power plants and sell electricity to continue serving Missouri customers. The bills have received strong support from the business community, residents and companies that wish to invest in Missouri.
Large energy users and industry organizations have testified in strong support of the legislation to help reduce electricity costs and ensure energy reliability. A representative of the auto manufacturer Ford Motor Company, which employs more than 9,000 workers at its Claycomo, Missouri plant, pointed to the successes of Ford plants in other states that have introduced competitive energy options.
Testimony from Ford and General Motors included:
“Our utility rates have become one of our largest cost challenges with no real ability to offset those increasing costs. Should various energy legislation proposals become law this year we anticipate continued increases annually for the foreseeable future,” Tony Reinhart, director of government relations for Ford, shared in written testimony to the committee. “Missouri doesn’t normally look to Illinois for good public policy. But Illinois got it right where they have unbundled generation, transmission and distribution services in a fair and equitable manner, providing us the ability to purchase power on the open market and better manage our costs. … We are in support of HB 417.”
“As electricity costs continue to rise, GM supports legislation that ensures reliable and
affordable electricity for our operations. HB 417 will assist industrial customers in managing their anticipated rising energy costs,” Rob Threlkeld, global energy strategy director for General Motors, shared in his written testimony.
“Missouri businesses and residents are excited about the progress of legislation allowing competition and the potential for price relief in the face of rising energy costs,” said Chris Ercoli, president and CEO of the Retail Energy Advancement League. “Competition has proven successful in other states with better price performance, reliability and the variety of options available to commercial and residential customers.”
The Consumers Council of Missouri reports the average residential electric rates increased by 20 percent from 2020-2023. Missouri ranked fourth among states in the U.S. in 2023 for the biggest jump in electric rate increases.
Residential electric customers have shared their concerns with rising energy and no alternative options. Missouri energy users are currently served by an investor-owned utility (Ameren, Evergy West/Metro, Empire), distribution cooperatives or municipal-owned systems. House Bill 417 and Senate Bill 487 only apply to the three utilities and their customers.
Adding to customer concerns is legislation –– Senate Bill 4 –– that awaits Governor Kehoe’s signature. This bill allows utility companies to start charging customers to build power plants before construction on the plant even begins. The need for new power generation stems from the lack of generation built in the last two decades and retirements within the next 10 years, causing a loss of half of the existing power that is generated. Ameren projects costs to build new power plants to be $13 billion over the next ten years.
According to the U.S. Energy Information Administration, Missouri is a net importer of electricity, consuming eight times more energy than its utility companies produce. State utilities have not kept pace to build enough power generation to meet customer demand and are buying power from other states, power generators and the wholesale energy market.
Missouri residents statewide are voicing opposition to the utility monopoly model and the need for choices.
“I hate the fact that I do not have a choice in who my utility company is. The only one available in my county is Ameren, and my average bill is $400 a month, with up to $900 during the summer months. This is a marked increase over even last year. How is anyone supposed to afford this?” -Rebecca S., Moberly
“Energy costs are much too high. Every time Evergy requests an increase in electric rates they always get what they ask for.” -Kristine S., Belton
“Evergy is monopolizing the entire two-state area. They overcharge and tack on all kinds of different fees. People deserve to have a choice on who their energy provider is.” -Melanie J., Kansas City
“It’s awful and killing our town. We have lost so many businesses this year because they can’t afford to operate under Liberty Utilities.” -Jacquelynn R., Bolivar
Both bills are continuing to move through the legislative process to either be heard again or voted on in assigned committees.