Missouri Utilities Want to Charge Customers Upfront Costs to Build Gas Plants
Date Posted: January 30, 2025
Posted In: Discussion, News,
From KSDK: Missouri’s two largest electric utilities want the state’s permission to charge customers for natural gas power plants before they’re completed.
Both Evergy and Ameren Missouri asked the Missouri House Utilities Committee on Wednesday to support legislation that would allow them to charge customers for natural, or methane, gas power plants even before they’re completed, saying the state needs more electrical power.
Because Ameren, Evergy and other Missouri electric companies are monopolies, the rates they charge customers must be approved by state regulators. Right now, they’re only permitted to charge customers for the cost to build power plants once they’re completed.
The utility companies — along with business groups and economic development officials — say Missouri is losing out on attracting major employers to the state because it doesn’t have enough power supply.
“With the strain on our grid, the first question business locators are asking local economic developers is not what your workforce looks like or what the tax structure is,” said the bill’s sponsor, Republican state Rep. Josh Hurlbert of Smithville. “It’s, ‘Do you have the power necessary for our project?’”
Hurlbert claims his district missed out on a major economic development project because of power supply issues, though he didn’t offer any specifics at Wednesday’s hearing.
But environmental and consumer advocates say the legislation, known as “construction work in progress,” just allows more profit for monopoly companies at the expense of consumers.