KC Reporter

Today, Governor Mike Kehoe took significant action by signing Senate Bill 4 into law. This legislation aims to enhance Missouri's energy infrastructure and support economic development over the long term.

Governor Kehoe remarked, "With this legislation, Missouri is well-positioned to attract new industry, support job growth, and maintain affordable, reliable energy for our citizens." He further emphasized the importance of energy independence, stating, "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."

SB 4 addresses rising energy demand and modernizes existing energy policy. It introduces reforms to ensure Missouri meets its electricity needs while offering substantial consumer protections. The bill, sponsored by Senator Mike Cierpiot and Representative Josh Hurlbert, includes several key provisions.

The "Watt for Watt" requirement ensures that utilities replace current capacity with dispatchable energy sources before decommissioning a power plant. Construction Work in Progress (CWIP) Accounting incentivizes new power generation facilities and reduces financing costs, providing long-term savings and expanding Missouri's electrical grid. Plant in Service Accounting (PISA) allows for recovering depreciation expenses over 20 years, encouraging new power facility construction and managing rate shocks.

The Hot and Cold Weather Rule extends the disconnection grace period during extreme weather to protect vulnerable customers. Special Residential Customers Rates empower the Public Service Commission to create tailored rates for seniors, low-income families, and other burdened customers. Additionally, the bill allows optional participation in time-of-use rates or advanced meters programs for residential customers. It also imposes stricter limits on recoverable deferred costs to mitigate utility rates.

The significance of the bill is heightened by Missouri's recent selection by the National Governor's Association and the U.S. Department of Energy to host a nuclear summit, demonstrating the state's commitment to developing reliable energy resources.