SB4

This past week, the Missouri Senate passed SB 4, an omnibus utility bill. While this legislation addresses various utility policies—including gas, electricity, sewer, and water—two of its most concerning provisions will have a direct and costly impact on Missouri citizens: Construction Work In Progress (CWIP) and future test years. I stood in opposition to SB 4, recognizing the financial burden it will place on hard-working families and businesses across the state.

CWIP is a utility policy that allows utility companies to charge customers for the costs of new power plant construction before the plant is completed and operational. This means that ratepayers are forced to finance these projects in advance, bearing the financial risk that traditionally falls on the utility companies and their investors. Missouri voters prohibited CWIP in a statutory ballot initiative in the 1970s, rejecting the idea that consumers should pay for something they are not yet receiving.  This piece of legislation would overturn the will of the people.  This was reason enough for me to vote no on this bill.

SB 4 also included provisions for future test years, which is policy allowing rates to be determined by future expense projections vs. historical expenses which can easily be proven.  Projecting expenses to justify rate increases isn't what the people deserve.

I opposed SB 4 because it will drive up utility rates for Missouri families, both large and small businesses, and manufacturers. At a time when citizens are already grappling with rising costs, this bill forces them to shoulder even more financial strain.

There is great potential for economic damage caused by significant utility rate increases, particularly for the manufacturing sector where commercial rates are already high and the electricity usage is more than the average citizen can imagine. When utility costs rise, businesses have fewer resources to invest in growth, hiring, and wages. Many companies, especially in manufacturing, have been operating on thin margins due to the current state of our economy.  I'm very concerned these increases in cost could lead to widespread job losses across Missouri.  

Even if several jobs aren't lost, the increased overhead due to enormous rate increases will be passed on to the customers, giving the average citizen not only increased utility bills but increased prices on their purchases.

The policies within SB 4 are in direct contradiction to the pro-growth, pro-tax relief agenda championed by President Trump. Instead of cutting costs for citizens and reducing government intervention, this bill increases financial burdens, expands government oversight, and shifts financial risks from utility companies to Missouri consumers. This is precisely the kind of legislation that stifles economic opportunity rather than promoting it.

A July 17, 2024, article by Politico quotes President Trump as saying,

Every county in Missouri chose President Trump over his competitor.  What in the world are we doing in the Missouri legislature by enacting policy that is the opposite of President Trump's agenda and raising costs for the people? 

The videos below explain more about my thoughts on this bill.