Summer 2022 Update
Greetings MBEF Members,
I hope this message finds you well in these hot summer months. With the stroke of a pen, Governor Parson moved our state forward signing legislation into law that creates new opportunities for local energy generation, continues the build out of our energy infrastructure, and creates new jobs and economic development.
The Governor signed three key pieces of energy legislation:
SB 745 – Modifies provisions relating to public utilities:
- Protects the personal information of municipal utility customers from disclosure under the Sunshine Law;
- Expands certain utilities’ ability to apply to the Public Service Commission
sfor a one-time rate adjustment for rate variations caused by weather, conservation, or both outside of a general rate proceeding; - Creates a legislative task force to review proper taxation on solar energy systems; and
- Establishes two discount rate options for new, large electric customers that project certain electric loads over 5- and 10-year periods.
SB 820 – Modifies provisions relating to utilities:
- Exempts solar energy systems that are purchased and installed by a solar energy company from sales tax;
- Establishes the Office of Broadband Development in state law, including criteria and deliverables for the broadband grant program; and
- Prohibits deeds, covenants, or other binding agreements that limit or prohibit property owners from installing solar panels on their rooftops.
HB 2005 – Expands protections for landowners in certain Eminent Domain proceedings:
- Electrical corporations must have a substation or converter station in Missouri that provides an amount of energy proportional to the length of their transmission line within the state;
- Electrical corporations must secure necessary financial commitments within seven years of when an involuntary easement is obtained or the easement must be returned to the original title holder without repayment to the utility;
- The compensation rate for agricultural or horticultural land is increased to 150 percent of the fair market value, which is determined by the court; and
- In condemnation proceedings where disinterested commissioners are appointed, at least one member must be a local farmer who has operated in the county for at least 10 years.
These bills allow our investor-owned utility companies to continue upgrading infrastructure to provide a more safe, secure, and reliable electric grid. Continued investment leads to fewer and shorter outages and stable and affordable rates for Missouri electric consumers. We are seeing rolling blackouts and strained utility grids in other states, but Missouri continues to move away from those potential outcomes with a stronger, more resilient electric grid.
Newly signed legislation also allows for more solar development, large and small scale, in both rural and urban areas. Missouri continues to generate more locally sourced renewable energy, which only adds to our diverse portfolio and lessens our reliance on non-Missouri sources. It also streamlined the state’s broadband grant program with the intent to extend wireless broadband to all corners of the state.
Lastly, a long fought battle on how to build a new transmission line to provide more wind generation across the country, while respecting private property rights, came to a compromise this session. The bill, as mentioned above, applies strict criteria when using eminent domain for transmission projects. It also guarantees that a portion of the wind energy generated in Missouri stays in Missouri. While energy generation from Missouri wind and sun continues to expand, protection of our property rights remains a top priority.
With a safer and more reliable electric grid and the expansion of locally sourced renewable energy, Missouri’s energy future looks bright.
