Missouri House committee holds hearing on Power Predictability and Reliability Act

Legislation designed to encourage utility companies to build new, on-demand generation

As power plants are retired throughout the country, policymakers in state legislatures are debating a variety of proposals on how to replace this critical generation. When it comes to building new power plants and bringing those assets online, Missouri currently lacks the regulatory certainty needed to ensure these important investments can be utilized in a timely fashion.

Since the last natural gas generation plant was brought online in Missouri in 2015, more than 40 power-generating assets have been retired by utility companies throughout the Show-Me State. To ensure Missourians continue to have access to reliable electricity, the House Utilities Committee heard testimony on House Bill 2541. Commonly known as the Power Predictability and Reliability Act, this legislation gives in-state utility companies certain regulatory assurances when they decide to build new, on-demand energy generation.

Warren Wood, Ameren Missouri’s vice president of regulatory and legislative affairs, testifies in support of HB 2541. Photo courtesy of Tim Bommel/House Communications.

Under HB 2541, the Missouri Public Service Commission would still have the power to determine if a project is a reasonable means of meeting the state's needs and interests and to ensure the project is executed in a prudent manner. If a company meets these standards, the legislation is designed to provide a level of regulatory certainty and security for utility companies when it comes to investing hundreds of millions of dollars in new dispatchable generation in the state.

"With power-usage rates expected to set record highs throughout our country in the coming years, now is the time to act to ensure Missouri's electric utility companies can meet the future needs of our state's citizens and its businesses," said Warren Wood, vice president of regulatory and legislative affairs for Ameren Missouri. "Missouri law shouldn't disincentivize the state's utility companies from building reliable and on-demand generation — it should encourage these companies to invest and move our state forward."

Ameren Missouri was joined by Evergy and several other businesses from around the state in testifying in support of the legislation. Additionally, the Missouri Chamber of Commerce and Industry also voiced their support for the measure.

Following the bill's hearing on Feb. 7, the committee did not take any further action on the legislation. Over in the Missouri Senate, the Commerce, Consumer Protection, Energy and the Environment Committee heard testimony on a similar piece of legislation on Feb. 6.