Show-Me State Times

Lawmakers in Missouri are evaluating new legislation aimed at improving the state's utility infrastructure, a key factor for economic development. The Senate Commerce, Consumer Protection, Energy and the Environment Committee reviewed two significant bills, SB 4 and SB 5, both introduced by Senator Mike Cierpiot from Lee’s Summit.

The proposed bills include a notable provision known as "future test year," which would allow utility companies to set rates based on projected expenses rather than past costs. This change is expected to provide more stability for utility firms, enabling them to upgrade outdated infrastructure and expand capacity more swiftly.

Rich Svindland, president of Missouri American Water, emphasized the importance of this legislation for addressing the state's infrastructure challenges. He stated that Missouri's current regulatory environment ranks poorly among states due to its inability to use future test years in ratemaking. "This bottom third ranking is not just a theoretical talking point. It has hurt Missouri American Water’s ability to attract capital," Svindland noted.

Additionally, SB 4 proposes a natural gas discount intended to draw large-scale economic projects to Missouri. The bill suggests a 25% rate reduction over four years for high gas consumers such as business campuses, schools, prisons, airports, and sizable nursing homes. This incentive aims to help communities lure new businesses and support existing ones as they grow.

Jared Hankinson from the Missouri Chamber expressed support for both bills during his testimony, highlighting the necessity of reliable and affordable energy for attracting and retaining businesses in the state. Other proponents include Spire Missouri, Liberty Utilities, and Ameren Missouri.