Jefferson City, MO – Missouri electric customers are one step closer to having new options for their electricity supply. House Bill 417, “The Electrical Choice and Competition Act,” was voted out of the Missouri House General Laws Committee today/yesterday. The bill, introduced by state Rep. Don Mayhew, will break up the electric utility monopoly and allow for competition in the generation and sale of electricity.
“The House General Laws Committee took a major step forward to support Missourians who have been struggling with their electric bills,” said Chris Ercoli, the president and CEO of the Retail Energy Advancement League. “This bill will introduce competition into the electricity market with new companies competing to bring the most affordable electricity to residents, while attracting private investments in energy generation and innovations. We applaud these legislators that took a step forward in breaking their constituents free of utility monopoly control.”
Electric ratepayers in Missouri are currently served by either the investor-owned utility (Ameren, Evergy West/Metro, Empire) distribution cooperatives or municipal-owned systems. House Bill 417 only applies to the three utilities and their customers.
According to the U.S. Energy Information Administration, Missouri is a net importer of electricity, consuming eight times more energy than its utility companies produce. State utilities have not kept pace to build enough power generation to meet customer demand and are buying power from other states, power generators and the wholesale market.
The Consumer’s Council of Missouri reports the average residential electric rates increased by 20 percent from 2020-2023 and in 2023, Missouri ranked 4th in the U.S. for the biggest jump in electric rate increases.
As rates are increasing, utilities have announced that half of the existing power generated in Missouri is planned to be retired in the next 10 years. Utilities have published plans to build new generation. Ameren projects costs to build new power plants to be $13 billion over the next ten years. Adding to customer concerns, new legislation recently passed in the Senate (Senate Bill 4) that will allow utility companies to start charging ratepayers to build power plants before they even break ground.
In Missouri, ratepayers have no choice but to pay for these costs. Utilities build generation and delivery infrastructure with guaranteed return on equity –– profit –– paid for by taxpayers.
Dennis Ganahl, director of MO Tax Relief Now, spoke about the passage of House Bill 417, saying “I applaud the passage of House Bill 417 out of the General Laws Committee and Rep. Don Mayhew’s leadership. Missouri shouldn’t be protecting a monopoly on any business, especially with how much electric rates have increased recently. Free markets and competition are always in the best interest of the customer. I look forward to seeing new businesses invest in Missouri’s energy market and the benefit to our economy when big energy users to small businesses and families across the state have the power to shop and save.”
There are 22 states that allow for full or partial energy competition, providing options to ratepayers. In 14 of those states, the utilities have to compete when building their electric generation and can’t force ratepayers to pay for the costs.
The price of electricity is rising across the country. Compared to monopoly utility states, states that broke up the utility have fared better on price performance, generation built and performance, reliability and carbon emission reductions. Customers have access to a wide variety of energy plans and products and use their buying power to hold companies accountable for costs and drive investments in energy innovation.
Customers throughout Missouri are sharing their frustrations with their utility company and inability to change electric suppliers.
“I find it absolutely disgusting that we don’t get a choice and the one utility company in my city racks up endless charges because they can,” proclaimed Amanda H. of Kansas City.
Caleb B. of Springfield insisted that “energy companies should have to compete. When there is competition we win.”
“There is no other electric company we can call and their rates are ridiculous,” said Flora R. of Florissant
House Bill 417 now heads to the House Rules Committee. A companion bill (Senate Bill 487) has been introduced in the Senate, filed by Sen. Nick Schroer. Senate Bill 487 has been referred to the Senate Commerce, Consumer Protection, Energy And The Environment Committee.
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