OPINION|
In recent years, residents of Missouri have started witnessing something that previous generations only worried about but rarely experienced—a strained electrical grid. For half a century, Missouri benefited from some of the most reliable and affordable electricity in the nation. This stability was the result of leaders in the past who prioritized building robust power plants and transmission lines, anticipating the state’s long-term energy needs. Today, those mid-20th-century baseload power plants are approaching the end of their operational lifespan.
To address this impending crisis, Senate Bill 4 (SB 4) has emerged as a critical piece of legislation, which I wholeheartedly support. This bill lays the groundwork for Missouri’s energy future, ensuring that it remains as reliable and cost-effective as it has been in the past. SB 4 emphasizes strategic planning and responsible rebuilding while directly addressing the genuine causes behind the rising costs of energy.
It is important to clarify that the recent spikes in electricity rates are not the result of SB 4. The law itself will not take effect until August 2025, well after utility companies finalize their requests for the years 2024 and 2025. The reasons behind the current rate hikes are rooted in more complex issues:
- Over the past decade, Missouri has decommissioned more than 4,000 megawatts (MW) of reliable coal-generated power.
- Federal regulations now make upgrades to those plants nearly impossible, resulting in premature shutdowns.
- The escalating costs of essential materials—fuel, steel, copper, aluminum, transformers, and various construction materials—have become significant financial barriers to new plant construction.
- Missouri’s energy demand has consistently exceeded its production capacity, forcing the state to import energy at premium prices from neighboring states, just to keep our lights on and appliances functioning.
For context, in 2012, Missouri generated 717 gigawatt-hours (GWh) more electricity than it consumed. Fast forward to today, and we are consuming 869 GWh more than we produce. This critical imbalance offers a clearer explanation of today’s rising utility bills than any politically motivated narrative.
When a state becomes reliant on imported electricity, it risks losing control over its energy costs. SB 4 aims to return that control to the people of Missouri. It strengthens our position, ensuring our energy future remains in our own hands.
Our Grid is Aging—and That’s a Major Cost Driver
Missouri’s transmission network is experiencing the same age-related challenges as our legacy power plants. The poles, lines, and substations that were installed mid-century are now in dire need of replacement, creating immense financial pressure on all types of utilities—whether they are investor-owned, cooperatives, or municipal.
A national transformer shortage compounds these difficulties. Critical components needed for everything from substations to rural feeders now take two years or more to procure, and their costs have tripled since 2015. Additionally, prices for copper and aluminum—essential materials for power lines—have surged significantly.
These realities, rather than SB 4, are primarily responsible for the considerable pressure on Missouri’s electric rates.
Demand is Rising Faster than Supply
Missouri is becoming a hub for new industries, including semiconductor manufacturing, agricultural processing, electric vehicle facilities, and massive data centers. To highlight the heightened demand, consider that the average large industrial project required 3 MW of power in 2019; by 2023, that figure had skyrocketed to 162 MW—a shocking increase of 5,300% in just four years.
These burgeoning industries hold tremendous potential for Missouri’s economic growth, but only if the state engages in thoughtful, strategic planning.
Fortunately, unlike deregulated markets found in eastern states where data centers can outbid consumers for scarce energy, Missouri is a regulated state. This means that large energy demands must be integrated into our long-range planning, rather than distorting prices or destabilizing the grid. SB 4 bolsters these essential protections.
Separating Myth from Fact
Let’s address some myths surrounding SB 4:
Myth: SB 4 caused recent rate increases.
Fact: SB 4 was not even enacted when those rate increases were filed.
Myth: SB 4 gives utility companies a blank check.
Fact: The Construction Work in Progress (CWIP) provisions under SB 4 are tightly controlled. CWIP can only be applied with Public Service Commission (PSC) approval for projects included in a utility’s approved four-year Integrated Resource Plan (IRP), and these IRP rules are scheduled for an update in 2027.
Furthermore, SB 4 introduces one of the most rigorous consumer protection frameworks in the nation: if a project is delayed, canceled, or incurs significant cost overruns, the PSC can recover 100% of its CWIP charges. Additionally, the law sunsets in 2035, necessitating a reevaluation by the General Assembly to ensure its efficacy.
Myth: Missouri will face the same data-center price spikes seen in Virginia or Maryland.
Fact: Those price spikes resulted from deregulated wholesale markets. Missouri’s regulated environment prevents data centers from directly bidding against families for power.
Myth: SB 4 increases long-term costs.
Fact: SB 4 effectively lowers future costs by reducing financing expenses, increasing oversight, strengthening consumer protections, and allowing for in-state plants that replace costly energy imports.
SB 4 reforms outdated Missouri laws that hindered the construction of modern, efficient baseload power for almost five decades. Specifically, SB 4:
- Reduces financing costs for new generation by eliminating unnecessary interest expenses from the past.
- Modernizes Missouri’s IRP to transparently evaluate and approve energy generation and grid needs.
- Extends grid modernization tools necessary for upgrading our aging transmission and distribution networks.
- Establishes a State Reliability Metric to guarantee that Missouri never again suffers a capacity shortfall.
- Strengthens consumer protections, including lowering the rate cap on annual increases, expanding oversight, and ensuring that federal tax savings are passed directly to customers.
These interlinked reforms are designed to lower costs, restore long-term reliability, and eliminate Missouri’s dependency on imported electricity.
The previous generations took proactive measures to address growing energy needs, and it is now our turn to meet this challenge. The stakes are incredibly high: failing to modernize our grid and invest in new generation will inevitably lead to rolling brownouts, job losses, and skyrocketing utility costs.
SB 4 places Missouri in a favorable position to address this critical moment—not through slogans or transient solutions but with enduring policy designed to benefit future generations.
For those interested in accessing detailed facts, charts, and analyses to support SB 4, a comprehensive white paper is available for download.
The future is reserved for states capable of providing reliable and affordable electricity. With SB 4 as a foundation, Missouri has made its choice.
Curtis Trent is a Missouri Senator representing District 20, which includes Barton, Dade, and Webster counties and part of Greene County. He is running for reelection this year and will face a primary challenge from Lori Rook.