Senate bill could raise utility rates for Missourians

By Ellie Coatar
(MDN News) -- Officials from Missouri's biggest power companies told a Senate panel on Tuesday, Feb. 5, that they need more cash for infrastructure upgrades, with that money potentially coming out of the pockets of Missourians.

The legislation, sponsored by Sen. Mike Kehoe, R-Jefferson City, would enable a rate increase to fund improvements to the electrical infrastructure that would allow utility companies to raise rates. The measure is largely supported by an electric alliance formed among Ameren Missouri, Kansas City Power & Light and The Empire District Electric Company.

Warner Baxter, Ameren's president and chief executive officer, told members of the Senate Commerce Committee Tuesday that the proposal would create jobs for thousands of Missourians. An Ameren study found that the bill will cause about a 50-cent increase for average residential electrical consumers.

Consumer advocate groups that oppose the bill, such as Missouri Industrial Energy Consumers, worry that the increased rates will negatively affect Missourians, especially the elderly, those with disabilities and low-wage workers.

Steve Spinner, the chairman of Missouri Industrial Energy Consumers, said the power companies are trying to go around state regulators and use the General Assembly to get their money. Spinner is also the manager of energy procurement at Monsanto.

"Streamlining the regulatory process is the goal of all regulated monopolies and it only benefits utilities, allowing them to get into the pockets of ratepayers faster with less oversight and less recourse," Spinner said.

The committee has not yet voted on the bill.

Unique Collaboration for Modern Regulations, Good Jobs, Reliable Power Infrastructure

The Missouri Electric Alliance (MEA), a collaboration of our state's investor-owned electric companies, is united in support of Senate Bill 207. The proposal by Senator Mike Kehoe of Jefferson City has gained bipartisan, urban and rural co-sponsors who want modernized utility regulations, good jobs and reliable energy infrastructure.




MEA's principal members are Kansas City Power & Light Co., The Empire District Electric Co. and Ameren Missouri. Together, the companies that keep the lights on across Missouri are urging lawmakers to update our 100-year-old utility regulations. This will enable more timely investment and re-investment in safe, efficient, reliable electric infrastructure as gas and water utilities have been able to do for a decade.



"Senate Bill 207, the Infrastructure Strengthening and Regulatory Streamlining (ISRS) bill, provides the first substantial modernization of Missouri's electric utility regulations in support of investments in infrastructure in 100 years. It will allow new reinvestment faster, creating jobs now and boosting reliability of Missouri's power grid. Similar updated regulations and consumer protections have been in place for a decade for Missouri's gas and water utilities. SB207 has bipartisan support from rural and urban lawmakers because it is good for Missouri's economic and high-technology future," said Scott Charton, spokesman for MEA.



Charton noted that the Association of Missouri Electric Cooperatives recently told Governor Jay Nixon by letter why it supports modernizing Missouri's aging power infrastructure: "Having a modern, safe and reliable transmission grid better positions Missouri to capture exciting new economic development opportunities and helps ensure stability in disaster situations."



To learn more about the powerful boost SB207 provides for economic development and electric grid reliability, visit Missouri Electric Alliance's website at http://www.moelectricalliance.org