Power Predictability and Reliability Act moves forward in the Missouri Senate

Legislation encourages investment in reliable, on-demand electric generation

With a vote of 7-1, the Missouri Senate's Commerce, Consumer Protection, Energy and the Environment Committee put its stamp of approval on a wide-ranging utility bill. House Bill 1746 contains several reforms to the state's utility industry, including language establishing the Power Predictability and Reliability Act. This measure is designed to remove barriers to investment for in-state utility companies building new, on-demand natural gas power plants and energy storage systems. Since the last natural gas power plant was brought online in 2015, more than 40 power-generating assets have been shut down throughout the Show-Me State.

Warren Wood speaks in support of the Power Predictability and Reliability Act during the bill’s hearing in the Missouri House of Representatives.

"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 continue to meet 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 ensuring Missouri continues to be an attractive and affordable place to do business."

Under the legislation approved by the Senate committee, the Missouri Public Service Commission would still have the ability to determine if a project is a reasonable means of meeting the state's needs and to ensure the project is executed in a prudent manner. If a utility meets these standards and moves forward with building a new natural gas power plant, the legislation provides a level of security for in-state utility companies when it comes to investing hundreds of millions of dollars in new, on-demand energy generation.

The committee's actions on HB 1746 come as the Midcontinent Independent System Operator (MISO) released the results of its 2024 Planning Resource Auction (PRA). The PRA determines whether there is sufficient electric generation capacity to meet the region's energy demands in the upcoming year. In situations where there is not enough generation capacity, the PRA establishes the price utilities and other load-serving entities must pay to acquire the power needed to meet their obligations.

MISO's regions are divided into 10 zones, spanning from Minnesota to Louisiana. The PRA revealed sufficient capacity in every zone except for Zone 5, which includes Ameren Missouri. While Ameren Missouri expects to have enough generation capacity to meet the needs of its customers over the next year, the results of the PRA reinforce the importance of adding additional, on-demand generation throughout the state.

"The results of MISO's PRA send a strong message that additional electric generation is desperately needed to ensure Missourians continue to have access to affordable and reliable power," said Wood. "MISO's announcement should serve as the 'canary in the coal mine' moment for policymakers. Now is the time to take action and reduce the disincentives utilities face when investing in new, on-demand power plants."

With the committee's actions, HB 1746 is now eligible for consideration before the Missouri Senate. The 2024 legislative session ends on Friday, May 17.