Missouri Senate committee approves Power Predictability and Reliability Act

Legislation encouraging investment in reliable, on-demand electric generation moves forward

By a 5-3 vote, the Missouri Senate Commerce, Consumer Protection, Energy and the Environment committee put its stamp of approval on a wide-ranging electric utility bill during a meeting on Jan. 30. Made up of four components, Senate Bill 6 includes language establishing the Power Predictability and Reliability Act. To assure the state's utility companies can continue to meet the needs of their customers and maintain the state's status as an affordable and attractive place to do business, this measure aims to reduce the disincentives energy companies face when investing in new, on-demand power plants.

"As power-usage rates continue to skyrocket throughout the country, now is the time to act to ensure Missouri's utility companies can continue meeting the needs of our state's citizens and its businesses," said Warren Wood, vice president of regulatory and legislative affairs for Ameren Missouri. "This legislation is about more than just access to reliable electricity; it's also about economic development and making sure Missouri continues to be an attractive and affordable place to do business."

The Senate Commerce, Consumer Protection, Energy and the Environment committee hear testimony in support of SB 6.

During a presentation to the Missouri Public Service Commission (PSC) in August, the Department of Economic Development reported the state has several large-scale business-related projects in its planning pipeline requiring more than a gigawatt of power each. These projects represent the potential of thousands of new jobs and billions of dollars of investment in the Show-Me State.

Under the legislation passed by the committee, the PSC would still have broad authority to determine if a project is a reasonable means of meeting the state's needs and interests and to ensure the project is completed 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 investing hundreds of millions, or in some cases billions, of dollars in new dispatchable generation in the state.

"Our state's ability to supply large-scale economic development projects with the power they need is vital to the Show-Me State's ability to maintain its status as an attractive and affordable place to do business," said Wood. "Missouri law shouldn't disincentivize the state's utility companies from building reliable, on-demand generation — it should support these investments to move our state forward."

In addition to Ameren Missouri, representatives from organized labor, the Missouri Chamber of Commerce and Industry, WEG Transformers USA, Evergy, Liberty Utilities and several other pro-business groups testified in support of the measure. Following its approval by the Senate Commerce, Consumer Protection, Energy and the Environment committee, the measure is now eligible to be debated before the full Senate.