by Don Corrigan
Missouri legislators are once again poised to overturn the will of the people after voters made their wishes known at the ballot box. Media attention is focused on two ballot measures from Nov. 4, 2024, but another measure grabbing attention goes back to 1976.
The two most recent measures involve a minimum wage increase and reproductive rights. Conservative lawmakers want to amend the wage measure (Prop A) to exclude substantial segments of workers from an increase to $13.75 per hour from the current $12.30 hourly.
Gov. Mike Kehoe and Lt. Gov. David Wasinger are urging legislators to void provisions of Amendment 3 legalizing abortions. They say voters were misled in 2024 by special interests and Missouri must be restored “as one of the top states protecting innocent life.”
Although news headlines have focused on actions in Jefferson City to void voter approval of Amendment 3 and the minimum wage ballot measure, there is also a move to nullify a 1976 citizen vote to protect ratepayers in the state from CWIP.
Utilities, including Ameren Missouri, are lobbying lawmakers to overturn a four-decades old prohibition on “Construction Work In Progress” (CWIP). CWIP allows utilities to bill consumers to finance new plants and other construction before they’re built.
Missouri voters in 1976 said a resounding “No” to prior financing of utility plants by a 2-1 margin. That will-of-the-people vote has been under constant attack ever since.
Gov. Kehoe now supports the legislation that would void the 1976 voter decision. Gas, sewer, water and electric utilities would allowed to base their rate requests on projected construction.
Kehoe supported a similar bill In the state legislature in 2011 when he was a state senator. Under that bill, consumers would have been charged $40 million to construct a second nuclear plant in Calloway County near Fulton.
The nuclear reactor was never built, confirming environmentalists’ contentions that it was not needed and, in any case, should not be paid for by utility ratepayers before going on-line.
PSC Throws Curve?
Tony Messenger of the Post-Dispatch reported in the daily’s Feb. 9 edition that the chair of the Public Service Commission (PSC), threw a curve when she testified in favor of utilities on the CWIP issue.
Commissioners are normally not lobbyists, and they are supposed to balance the interests of utilities and ratepayers. However, Chair Kayla Hahn testified this statehouse session in favor of CWIP legislation.
Such actions in the past have spurred ethics complaints. PSC chairs have been deemed as out of line when they appear to forget the word “Public” with regard to the obligations of the service commission.
The Public Service Commission’s job is normally to be an umpire in such disputes that involve proposals hiking rates or charging consumers with facilities costs.
More Hikes Coming?
Beyond extra costs that legislative approval of CWIP would impose on ratepayers, several Missouri utilities are asking for substantial rate hikes. Residents have made their unhappiness known at several public hearings.
Ameren Missouri has proposed a 15.77% rate increase. Consumers Council of Missouri is advocating for what it says is a more reasonable increase, while calling for an expansion of Ameren’s customer assistance programs.
Local public hearings on the Ameren hike across the state have been well attended with standing-room-only crowds at some locations.
Missouri American Water Company has asked to raise residential water rates by a staggering 41%, according to the Missouri Consumers Council. An evidentiary hearing on the hike is scheduled in Jefferson City beginning Feb. 27.
Consumers Council will present testimony in support of a significantly lower rate increase and will also push for stronger protections for low-income households..
Spire’s proposed rate hike for natural gas could add an average of $13.87 to monthly residential bills, a change that could take effect by Oct. 24 or earlier.
Missouri Public Service Commission has scheduled local public hearings from June 2-5, giving residents a chance to testify on their experiences with the utility and gas bill affordability.
Consumers may want to scrutinize Spire’s request and provide feedback on the increase proposal. With significant rate increases on the horizon for all utilities, important discussions about energy costs in the state have never been more crucial.
Environmental Echo 