Last week, I talked about how quickly things were moving in the Missouri Senate. This week, we hit a snag. Starting Wednesday evening a small group of senators filibustered legislation, which promotes investment in our energy infrastructure and grid modernization under the Public Service Commission’s (PSC’s) regulatory framework. Senate Bill 564 will bring stability, predictability and security to our energy grid. The filibuster lasted for more than 20 hours.
Missouri’s energy policy is old, outdated and broken. While 46 other states have already modified and improved their regulatory environment, Missouri’s rates have gone up four times faster than the national average over the past decade. Our energy costs have increased 46.7 percent since 2007. Our century-old regulations have prevented our grid from being modernized in the same, safe, secure ways other states have experienced.
Senate Bill 564 will cap rate increases at 28.5 percent for utility companies that file a five-year capital investment plan with the PSC. This will allow the utility company to replace, modernize and secure its infrastructure while the PSC still has authority and oversight over the project. The bill also contains a measure that will help consumers maximize the benefits of the recently passed federal tax cut. Because the federal legislation cut the corporate income tax rate from roughly 39 percent to 21 percent, regulated utilities in Missouri will pay less in taxes. This measure will make sure money goes back to customers who are paying utility rates based on the old tax brackets, and would cut electric bills by more than $100 million per year and put that money back into Missourians’ pockets.
Missouri needs a competitive edge when it comes to our energy policy. Businesses need a reliable, quality energy source. Consumers want stable and predictable pricing. They want a smart, secure and stable electrical grid. By capping rates and updating the grid, Missouri consumers will save millions. Low electricity prices mean families get to keep more of their paycheck and Missouri businesses can operate at a lower cost. Current and future jobs depend on low energy costs.
By modernizing the grid, we also increase its security, and utility companies can better protect consumers from cyber-attacks. These are real threats, and they must be addressed sooner than later. Grid improvements also prevent power outages and reduce outage time. This component is critical to existing businesses and any business looking to move to our state.
Current rate increases are out-of-control, sometimes at 5 or 6 percent, hurting businesses and Missouri families who foot the bill. Other states that have modernized their electrical grids have found energy costs to be stable and predictable, and in some cases even lower over time. This measure will help advance smart technologies while keeping intact strict regulatory oversight and consumer protections. By capping rates and updating the grid, Missouri consumers could save millions and would again make the Show-Me State a low-energy cost state. If we don’t act now, it’s our Missouri families and economy who will lose.
While this legislation is important for citizens across the state it does not affect anyone in the 33rd Senatorial District, only customers of certain, larger utility companies will be affected. We are served by municipalities and the electric co-ops who provide us with excellent service, and their rates are not affected by this bill.
As always, I appreciate it when groups from around Missouri and from our community back home come to visit me at the Capitol. If you would like to arrange a time to come and visit me in Jefferson City, or if you ever have any questions, please don’t hesitate to contact my Capitol office at (573) 751-1882.