Kehoe signs energy infrastructure bill; opponents protest against potential rate increases
COLUMBIA, Mo. (KMIZ)
Gov. Mike Kehoe signed Senate Bill 4 into law Wednesday morning, with supporters saying it will strengthen Missouri's energy infrastructure.
"This is about powering Missouri for Missourians and not relying on other states and countries to produce our power," Kehoe said in a press release. "This legislation strengthens our economic development opportunities, helps secure our energy independence, and provides consumer protections to build a resilient energy future for generations to come."
The bill covers a range of policies from solar energy to utility rate changes. The most controversial provisions in SB 4 overturn the Construction Work in Progress statute, allow companies to use "future test year" rates and expand Plant in Service Accounting.
The previous CWIP statute banned utility plants from charging customers while a plant is in the middle of construction and only increased rates at the completion of the project.
Under "future test year" rates companies can charge customers on projected costs instead of actual costs.
The PISA change allows companies to increase utility rates to account for the cost of projects that are still in early stages.
Supporters argue that allowing increased rates helps with efficiency by letting businesses recover costs faster and the test year rates allow companies to better plan for the future.
"It's a big step for Missouri, it's going to help us going forward with some of our energy problems and it's been a long time coming," bill sponsor Mike Cierpiot said. "Everything in that bill really has been vetted over the last three or four years."
Cierpot acknowledges that utility bills may increase but will ultimately not have a major effect.
"People have asked me, 'Well, if you pass this, are rates going to go up?' Well, quite honestly, rates are going to go up whether we pass or not, that's just the nature," Cierpot said. "Our rates are still very low compared to the national averages."
Opponents argue that low-income residents can't afford the additional fees and disagree with being charged for utility projects that aren't fully reviewed or built.
"When these bills are passed, they affect everyone in Missouri, every single household who pays utilities," executive director of Consumers Council of Missouri Sandra Padgett. "This bill is nothing more than a profit-driven package that benefits utilities at the expense of hardworking Missouri families."
The Missouri Consumers Council hosted a protest in response to the bill signing Wednesday afternoon at the Capitol.
— MO Consumers Council (@MOconsumer) April 8, 2025
Gov. Kehoe will sign SB4—raising utility bills by $1,115 for MO families.
Capitol, North Side (by the River)
Wed, April 9
12:15–1PM
Rally + Press Conference
Stand up for affordable energy! #StopSB4 #MOleg #EnergyJustice pic.twitter.com/xk7TMzxPWv
Parts of the bill that have received support include increasing funding to the Office of the Public Counsel. The office represents the public in discussions with utility companies.
Another supported change extends the time frame before utilities can shut off service for customers who are behind on payments during extreme heat or cold. Initially, the shut-off was after 24 hours. The new law extends that to 72 hours.
Owners of solar power systems older than August 9, 2022 will also get a tax cut by having their solar equipment assessed at 5% of its true value.
Critics of the bill argue that while there are some positives to the bill, the benefits don't match the rate increase especially since the bill is focused on incentivising major natural gas production.
"This is not the way to do it, this is just fancy accounting," Barwick said. "Legislators are cutting off their nose to spite their face because this bill specifically subsidizes fossil fuels, not renewable energy."
Cierpiot claims that SB 4 was the most beneficial to both energy producers and their clients.
"I think it's got a good balance, the portion that some people say they're upset about is what they call construction work in progress, if you look at our bill, what we've done, there is more protections for consumers in that than anybody, any state in the country," Cierpiot said.
The Consumers Council of Missouri and other opponents of the bill hope to have initiative petitions to overturn sections of the text next year.
