JEFFERSON CITY (Jan. 20, 2026) –– Sen. Nick Schroer (St. Charles County), Rep. Tricia Byrnes (St. Charles County) and Rep. Don Mayhew (Miller and Pulaski Counties) re-introduced legislation aimed at ending Missouri’s monopoly utility model. The bills create electricity options for residents and businesses, providing consumers more power over their electric bills. The Retail Energy Advancement League (REAL), a national advocacy organization dedicated to the expansion and modernization of American retail energy markets, applauds Schroer, Mayhew and Byrnes for their legislation.

“Missouri residents and businesses are in search of better options as they continue to be overwhelmed by their monthly electric bills,” said Chris Ercoli, president and CEO of the Retail Energy Advancement League. “Competition has proven successful in other states with better price performance, reliability and the variety of products and contract options available to commercial and residential customers. Sen. Schroer and Reps. Mayhew and Byrnes are taking action to address a problem facing all Missourians with a solution that can help move the state forward.”

The bills, Senate Bill 1411, House Bill 2233, and House Bill 2207 create a free-market alternative to a vertically integrated energy structure. Both bills require the electric utilities to compete with electricity generators and suppliers to build power plants and sell electricity. All electric users will benefit from having more options to power their homes and businesses.

Sen. Nick Schroer, SB 1411 sponsor

“As Americans, we have the freedom to shop for just about anything in this country, but in Missouri we don’t have the right to shop for our own electricity,” said bill sponsor Sen. Nick Schroer. “Missourians are trapped, held captive by a monopoly utility structure and the financial risks these investor-owned utilities place on the backs of their customers. This must change. Missourians deserve the right to hold utility companies accountable by having the ability to choose who supplies their electricity and what that energy product is, forcing all suppliers to compete for the business of consumers.”

Rep. Don Mayhew, HB 2233 sponsor

“My constituents keep adjusting their thermostats as utility companies continue to drive up electric bills,” said bill sponsor Rep. Don Mayhew. “Utilities can now bill for billion-dollar power plants before a shovel ever hits the ground — printing themselves sky-high guaranteed profits — while families are left wondering if they can even afford to keep the lights on. This legislation is long overdue and is needed to give Missourians real energy choices and hold utilities accountable in a consumer-first market.”

Rep. Tricia Byrnes, HB 2233 sponsor

“I continue to hear the outcry from my constituents about how expensive electricity is as they struggle with the fear of price gouging in a monopoly energy market,” said bill sponsor Rep. Tricia Byrnes. “My colleagues Sen. Schroer and Rep. Mayhew gained traction last year with legislation to break up the monopoly market and give consumers energy choices. By introducing House Bill 2233, I’m helping to carry that momentum forward to help give consumers a stronger voice –– and options –– to hold utility companies more accountable.”

Large energy users and industry organizations have previously testified in strong support of the legislation to help reduce the cost of electricity and ensure energy reliability. A representative of the auto manufacturer Ford Motor Company, which employs more than 9,000 workers at its Claycomo, Missouri plant, pointed to the successes of Ford plants in other states that have introduced competitive energy options.

Testimony from Tony Reinhart, director of government relations for Ford Motor Company

“Our utility rates have become one of our largest cost challenges with no real ability to offset those increasing costs. … Missouri doesn’t normally look to Illinois for good public policy. But Illinois got it right where they have unbundled generation, transmission and distribution services in a fair and equitable manner, providing us the ability to purchase power on the open market and better manage our costs.”

BACKGROUND ON MISSOURI ENERGY MARKET

• Missouri ranks 5th worst among all states in price percentage change from 2008-2023, with an increase of 61% during that time
• Residential electric rates increased by 20% from 2020-2023, according to Consumers Council of Missouri
• Missouri is a net importer of electricity
  • The state consumes 8x more energy than its utility companies produce
  • Missouri utility companies have only built or updated ~2,000 megawatts (MW) of power generation from 2008-2023
• With the construction work in progress (CWIP) law, utilities can plan to build muli-million dollar power plants to increase generation and bill customers for those costs before construction even begins
• The Missouri Public Service Commission unanimously approved new rates for large electric users like data centers even after concerns were raised about increases to residential electric bills

MISSOURIANS ARE SPEAKING OUT

Missouri residents statewide are voicing opposition to the utility monopoly model and the need for choices.

“Unleash the free market that encourages companies to be innovative, compete for their customers’ business, provide return on investment, and offer respectful customer service. Had there been electric company competition, maybe Ameren wouldn’t have been so heavy.” -Mary Ann B., St. Peters

“Ameren has gone up nearly 40%. They want us to pay for future infrastructure, while banking OUR MONEY gaining THEM INTEREST!” -Lori W., Wentzville

“I hate the fact that I do not have a choice in who my utility company is. The only one available in my county is Ameren, and my average bill is $400 a month, with up to $900 during the summer months. This is a marked increase over even last year. How is anyone supposed to afford this?” -Rebecca S., Moberly

“Energy costs are much too high. Every time Evergy requests an increase in electric rates they always get what they ask for.” -Kristine S., Belton

“Evergy is monopolizing the entire two-state area. They overcharge and tack on all kinds of different fees. People deserve to have a choice on who their energy provider is.” -Melanie J., Kansas City

“It’s awful and killing our town. We have lost so many businesses this year because they can’t afford to operate under Liberty Utilities.” -Jacquelynn R., Bolivar

The post Lawmakers Working to Address Rising Electric Rates Re-Introduce Bills to Break up the Utility Monopoly first appeared on Retail Energy Advancement League.

In three weeks, an online petition that was launched in late July secured 3,000 signatures from Missouri residents who want to stop “excessive” rate increases by Ameren, the state’s largest utility. 

One petitioner named Marissa wrote:

She isn’t wrong. Missouri’s energy structure is vertically integrated, monopolized by the ratepayer-funded utility companies. This means the utility company controls the generation of electricity, the sale of the electric supply and the delivery of that product to your house. Without competition, it’s understandable to have the feeling of unfairness when you aren’t afforded any other options.

Missourians have also been expressing their frustration through the My Energy Choice campaign, a consumer advocacy campaign full of customers demanding state lawmakers take action to break up the utility monopoly. Melissa from Saint Joseph wrote:

This topic of utility monopolies was the focus of a recent article from KBIA, an NPR affiliate in Missouri. The authors of the article posed the question, Why are utility companies monopolies? The article includes perspectives from academics that riff on the idea that the mechanics of just one company monopolizing the power for a community is best to prevent various sets of poles and wires from attempting to deliver electricity. Another academic spoke to economies of scale and how utilities could produce cheaper electricity that would not occur if there was competition.

Unfortunately, this article or these experts did not address all the research or evaluate states with competitive markets, as there are 23 states that allow some or full electric competition.

THE DIFFERENCE BETWEEN MONOPOLY AND COMPETITIVE MARKETS

In a competitive market, utility companies still have an integral role in delivering electricity. There are not multiple sets of wires and poles for every supplier selling electricity. All power runs through the electric lines of the utility company, preventing energized spiderwebs on every street. A quick explainer can be found here.

When it comes to price, like any product that has ever been sold, competition applies pressure to any seller with a compatible product to keep prices down. The same goes for electricity. The academics from the article mentioned above used Pennsylvania as an example of where competition has not worked for consumers, but a recent analysis of electric rates and retail supply offers conducted by a former Pennsylvania public utilities commissioner suggests otherwise.

SIMILARITIES BETWEEN TODAY’S MISSOURI AND ’90s PENNSYLVANIA

Pennsylvania was once like Missouri: a state with growing demand and not enough supply, high electric rates, power generation inefficiencies, a push to spend a lot of money on nuclear energy, plus occasional blackouts. This was the energy market in the early 1990s for the then-utility-monopolized Pennsylvania. 

Knowing that a change needed to happen to protect consumers and ensure lights stayed on, state lawmakers passed legislation in 1996 that restructured Pennsylvania’s energy market, opening the doors for competition to generate and sell electricity. Nearly 30 years later, John Hanger, a Pennsylvania utility commissioner who was an architect for the Commonwealth’s market restructure, analyzed data to determine if the restructuring continues to be beneficial for consumers. The results speak for themselves.

PENNSYLVANIA CONSUMERS ARE BENEFITING FROM COMPETITION

Hanger recently compared the Pennsylvania utility electric rates in 1996 from seven different service territories to the utility rates and retail supply offers from 2024 in those same territories. What he found is that customers could have enrolled with retail suppliers in 2024 at electricity prices that were cheaper than utility rates in 1996 –– direct comparisons, no adjustments. When inflation adjustments were added to the 1996 rates to conservatively estimate what they would equate to in 2024, Hanger discovered that the 2024 utility rates were cheaper than what they would have been projected to be based on the 1996 rates. 

This demonstrates that price pressure from competition works. 

Because Pennsylvania has competition, anyone selling electricity has to compete for the business of consumers. If prices don’t fall in line with other electricity products on the market, it’s less likely the consumer will purchase the product, opting for another product.

Pennsylvanians have robust options in the type of electricity they can purchase and in the length of their contracts. If a customer wants to purchase a premium product, such as 100% solar energy, they can do that. If they want to lock in a rate for 36 months without the worry of price volatility, they can do that too.

In Missouri, there are no alternatives and energy users are stuck with the prices that are set by the utility and Public Service Commission. The Consumers’ Council of Missouri reported that electric rates increased 20% from 2020 to 2023. That’s an annual cost increase of $327 for the average household. Data also shows that in 2023, Missouri ranked 4th in the country for the biggest jump in electricity, starting in 2008.

MISSOURIANS FORCED TO PAY FOR NEW POWER GENERATION

One of the biggest factors coming out of the restructuring is that Pennsylvania has built more baseload power plants and new power generation than Missouri and other nearby monopoly states –– and it happened without customers paying for it. 

As a result of restructuring, competitive states have more power and better reliability than states that protected their utility monopolies. The new power generation projects in Pennsylvania are paid for by private investors with experience in producing energy from natural gas, wind, solar, hydro, nuclear, etc.  

Unfortunately, in Missouri, all power generation is paid for by the ratepayers (customers). In fact, legislation (Senate Bill 4) was recently signed into law, allowing utility companies to bill for “construction work in progress” or CWIP, meaning before any energy is even produced –– let alone a shovel breaking ground –– the utility company can start billing ratepayers. And if priority projects are nuclear facilities, Missouri could find itself even closer to Pennsylvania’s position pre-1996.

This is a concern for Missourians who have voiced their displeasure, including a video of a petitioner on the Change.org campaign. A guy named Dewayne in a video message said:

PUTTING POWER IN THE HANDS OF THE PEOPLE

Missourians want to see change. They want to have a choice. And the state can help by putting the power in the hands of consumers to have some control over their electric bills.

The 2025 legislative session included legislation introduced by Sen. Nick Schroer and Rep. Don Mayhew to give electric customers energy choice. The companion bills, Senate Bill 487 and House Bill 417, were designed to create a competitive market, make suppliers earn the business of consumers, and invite privately invested power generation into the state to better support demand without forcing the ratepayers to fund those financially risky projects. Unfortunately for Missourians, those bills were heavily opposed by –– you guessed it –– the utility companies.

Consumers are sounding alarms as utility companies maintain total control. As petitions for change continue to swirl, perhaps Missourians will see energy choice legislation reintroduced in 2026. 

The post Missourians Are Heating Up Over Electric Bills, Demanding Change first appeared on Retail Energy Advancement League.

“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.

Resources:

• Missouri Energy Fact Sheet
• Monopoly vs. Competitive Markets Explained
• Quotes from Missourians Statewide in Support of Legislation (Approved for Media Use)

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The post Missouri Legislators Support Breaking Up Utility Monopoly to Allow for Competition in Energy Market, Pass Bill Out of Committee first appeared on Retail Energy Advancement League.