Ameren Missouri highlights key provisions of state’s new rate reform law
With Missouri’s recent enactment of a rate reform law, customers of investor-owned utilities in the state will see a 5 percent rate reduction this year, a rate freeze extending through 2020 and future rate caps.
Ameren Missouri officials have indicated that the reforms will pave the way for $1 billion in grid modernization investments and smart technology upgrades and will immediately enable $100 million in federal tax reform savings to be passed on to customers in the form of a 5 percent rate reduction.
“For years our customers have expressed a desire for more stable and predictable energy bills, as well as a modernized electric grid that is smarter and more resilient to outages,” Michael Moehn, president of Ameren Missouri, said. “The new law delivers on this important task. We look forward to delivering a plan that will greatly benefit our customers, create jobs, bolster the grid and enable new economic growth in Missouri. We thank the coalition of customers, businesses, community organizations and lawmakers that came together this year to upend the status quo and make energy infrastructure improvement and customer rate stability a reality.”
Ameren Missouri states that customer rates will be frozen until 2020 under the law. Then, going forward, annual rate increases will be capped at 2.85 percent of compound annual growth. The new law also offers $28 million in solar rebates to encourage the use of renewable energy, and for Ameren Missouri to invest $14 million in utility-owned solar by 2023.
Chris Ventura, Midwest executive director of the Consumer Energy Alliance, said the group looks forward to working with Missouri policymakers to support building an energy infrastructure that “not only provides upgraded capabilities but also protects the pocketbooks of people on fixed income or living paycheck to paycheck.”
“Nothing is more important to us than ensuring energy consumers — especially those struggling to make ends meet — are treated fairly,” Ventura said. “We also support provisions of the new law that help grow Missouri’s economy through job creation, as a result of energy grid modernization, and by providing incentives for large energy users who expand their businesses. Business growth helps keep energy costs down for all consumers.”
However, critics of Senate Bill 564 argue that companies will have more flexibility to determine how and when rates are adjusted under the bill, resulting in higher consumer prices in the long run.
