Lawmakers are considering legislation to bolster Missouri’s utility infrastructure, a necessity for economic growth.
The Senate Commerce, Consumer Protection, Energy and the Environment Committee heard two wide-ranging pieces of utility legislation – SB 4 and SB 5. Both bills are sponsored by Sen. Mike Cierpiot (R-Lee’s Summit).
The bills contain several important provisions, including a new ratemaking standard known as “future test year.” This would allow utility companies to base rates on projected expenses, rather than historical costs.
Future test year would create more certainty for utility companies, allowing them to replace aging infrastructure and increase capacity at an aggressive pace.
Rich Svindland, president of Missouri American Water, said the legislation is vital to addressing Missouri’s infrastructure needs.
“According to the Regulatory Research Associates, which is the preeminent research report on utility regulations, Missouri ranks in the bottom third of all states for regulatory environments, because, among other things, we cannot use a future test year in the ratemaking process,” Svindland said. “This bottom third ranking is not just a theoretical talking point. It has hurt Missouri American Water’s ability to attract capital.”
SB 4 also includes a natural gas discount to help Missouri attract large economic development projects. The bill creates a rate discount of 25% for four years for high gas users, such as business campuses, schools, prisons, airports and large nursing homes. The discount would help communities attract new businesses and support the expansion of existing businesses when they increase their footprint and become larger consumers.
Jared Hankinson, director of legislative affairs for the Missouri Chamber, testified in support of both pieces of legislation, because reliable, resilient and affordable energy is essential to retaining and attracting business to the state.
Other supporters include Spire Missouri, Liberty Utilities and Ameren Missouri.
For more information, contact Hankinson at jhankinson@mochamber.com or call (573) 634-3511.
