(JEFFERSON CITY, Mo.) Missouri Governor Mike Kehoe signed Senate Bill 4 into law.
The legislation is designed to respond to energy demand and introduce reforms to ensure Missouri can meet its growing electricity needs.
“With this legislation, Missouri is well-positioned to attract new industry, support job growth, and maintain affordable, reliable energy for our citizens,” Kehoe said. “This is about powering Missouri for Missourians and not relying on other states and countries to produce our power. This legislation strengthens our economic development opportunities, helps secure our energy independence, and provides consumer protections to build a resilient energy future for generations to come.”
Provisions included in SB 4 are:
- “Watt for Watt”: Requires utilities to replace current capacity with dispatchable sources of energy prior to decommissioning an existing power plant, ensuring Missouri continues to have reliable power generation resources.
- Construction Work in Progress (CWIP) Accounting: Incentives new power generation facilities and reduces financing costs, saving Missourians money in the long run and expanding Missouri’s electrical grid capacity.
- Plant in Service Accounting (PISA): Allows utilities to recover certain depreciation expenses from new natural gas power plants over a 20-year period, incentivizing the construction of new power generation facilities and helping to avoid rate shocks for consumers.
- Hot and Cold Weather Rule: Extends the disconnection grace period during extreme weather from 24 to 72 hours to protect vulnerable customers.
- Special Residential Customer Rates: Authorizes the Public Service Commission (PSC) to create tailored utility rates for seniors, low-income families, and other overly burdened customers.
- Advanced Meters and Time-of-Use Rates: Provides residential customers the option whether to participate in time-of-use rates or advanced meters programs.
- Lowering of the Revenue Requirement Impact Cap: Places stricter limits on recoverable deferred costs to help keep utility rates in check.
The bill was sponsored by State Senator Mike Cierpiot and State Representative Josh Hurlbert.