Missouri Governor Mike Kehoe has signed Senate Bill 4 into law, marking a move to strengthen the state’s energy infrastructure and support long-term economic development.
Kehoe stated the legislation aims to improve energy reliability and reduce dependence on out-of-state and foreign energy sources.
“With this legislation, Missouri is well-positioned to attract new industry, support job growth, and maintain affordable, reliable energy for our citizens,” Kehoe said. “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.”
Senate Bill 4 is intended to address rising electricity demand and outdated energy policy. The bill was sponsored by Senator Mike Cierpiot and Representative Josh Hurlbert.
Key provisions of the bill include:
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“Watt for Watt”: Requires utilities to replace existing capacity with dispatchable energy sources before shutting down power plants. The provision is intended to ensure continued reliability in energy production.
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Construction Work in Progress (CWIP) Accounting: Aims to lower financing costs by allowing utilities to recover certain costs during construction, which could reduce long-term electricity expenses and expand the state’s electrical grid.
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Plant in Service Accounting (PISA): Allows utilities to recoup depreciation expenses from new natural gas facilities over a 20-year period. This is expected to encourage the construction of new power plants and minimize sharp rate increases.
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Hot and Cold Weather Rule: Extends the utility disconnection grace period from 24 to 72 hours during extreme weather to provide additional protection for vulnerable customers.
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Special Residential Customers Rates: Permits the Public Service Commission to implement utility rate programs for seniors, low-income households, and other financially burdened customers.
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Advanced Meters and Time-of-Use Rates: Enables residential customers to choose whether to participate in time-based utility rate plans or use advanced metering systems.
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Lowering of the Revenue Requirement Impact Cap: Introduces tighter limitations on deferred cost recovery to manage potential utility rate increases.
Missouri’s energy policy direction was further highlighted by its recent selection by the National Governors Association and the Department of Energy to host a nuclear energy summit. The summit reflects Missouri’s commitment to expanding reliable energy options.
For more information on SB 4, click here.
