Legislature passes bill to cut and cap electric rates, modernize Missouri’s energy grid
The Missouri General Assembly has given final passage to legislation that hastens the refund of more than $133 million in federal tax savings to Missouri utility customers and caps electric rates to prevent high, unpredictable energy bills.
Senate Bill 564, sponsored by Sen. Ed Emery, enables Missouri utility companies to quickly pass their recent federal corporate tax cut savings on to their customers. Current state regulations prevent energy companies from doing so outside of a rate case. This bill means energy customers will receive the full benefit of the tax cuts in a timely manner.
Over the last decade, Missourians have been burdened with energy rates climbing approximately four times faster than the national average. Under SB 564, they will see rate increases capped at either a 2.85 or three percent annual average, depending on the service area. This bill also freezes rates for the next three years to help offset past rate hikes. These provisions will bring much needed stability to customers’ energy bills.
SB 564 will also help to modernize the state’s outdated energy grid to improve its reliability and security, making Missouri a more competitive location for business investment and job growth.
“The passage of Senate Bill 564 marks a significant step toward our Missouri 2030 goals to address Missouri’s energy challenges and aging utility infrastructure. Having affordable and reliable energy will be a strong advantage in our state’s efforts to retain and attract business,” said Daniel P. Mehan, Missouri Chamber president and CEO. “When signed into law, this bill will ensure the rates of Missouri families and businesses alike are predictable and competitive for years to come, while also making Missouri’s energy grid smarter and more secure.”