Ameren Missouri supports the Missouri First Transmission Act
Legislation allows Missouri utilities to build the electric grid of the future
Regional transmission organizations, such as the Midcontinent Independent System Operator (MISO), have the power to decide when and where most of the electric transmission projects are built in the Midwest. Despite this power, federal law includes a mechanism allowing states to assert more control over these decisions. While many of Missouri's neighboring states have laws in place to exercise this type of authority, legislation would need to be passed by lawmakers in the Show-Me State to grant Missouri, not out-of-state entities, this same decision-making ability.
To help ensure investor-owned electric utilities and other current transmission asset owners in Missouri have the opportunity to develop these types of transmission projects, Ameren Missouri supports House Bill 1449 and Senate Bill 805. Commonly known as the Missouri First Transmission Act, these proposals give existing owners of in-state transmission assets the right-of-first refusal on all transmission projects that connect to their systems and are approved by MISO or other regional transmission organizations. In addition, the legislation includes language encouraging co-location of new transmission assets with other existing infrastructure, measures designed to control costs within these projects and agricultural land mitigation standards when new transmission lines are built on private property.
Representative Ed Lewis discusses the Missouri First Transmission Act during the bill's hearing in 2023.
“Transmission lines are important; we need them in our modern society, and we need transmission lines that are going to improve the reliability of our energy grid,” said Rep. Ed Lewis, R-Moberly, the sponsor of HB 1449. "In my mind, new transmission lines should be owned and operated by utility companies within our state, and those transmission lines should be co-located where there already are easements owned by utilities within the state."
As part of its Long-Range Transmission Planning (LRTP) initiative, MISO has identified 18 projects that make up phase one of its long-term plan. Of those 18 projects, portions of three will take place in northern Missouri — one of which was recently awarded to Ameren. In states with right-of-first-refusal laws, these LRTP projects can begin as soon as they are approved by MISO. In states without these policies in place, like Missouri, these transmission projects will be forced to go through a lengthy competitive bid process that could take up to two years to complete.
Supporters of the competitive bid process often point to the idea it drives down the cost of transmission projects. Despite these claims, a recent study released by the DATA Coalition prove the opposite to be true. According to the DATA report, two-thirds of the competitive bid projects cited by supporters of the process actually exceeded cost estimates. MISO's process not only delays the building of vital infrastructure but also results in potentially higher costs for customers.
The legislation was pre-filed in both chambers before the start of the 2024 legislative session. In the Missouri House of Representatives, Rep. Ed Lewis will sponsor the measure. On the other side of the State Capitol, Sen. Rusty Black, R-Chillicothe, is the sponsor of SB 805, the Senate version of the legislation.