MBEF Summer Update 2025
Greetings MBEF Members:
I hope you all had a wonderful Independence Day weekend. As we celebrate the freedoms we enjoy as a nation, let us appreciate our charge toward energy independence and the significant steps taken in both the Missouri General Assembly and the U.S. Congress.
New Missouri Utility Infrastructure Investment
Earlier this year Governor Kehoe signed into law Senator Cierpiot’s SB4, perhaps the most significant energy legislation since SB564 passed in 2018. Some of the most significant changes include:
Construction Work In Progress
A provision that allows utility companies to recover costs for new plant construction (natural gas only) prior to the conclusion of a rate case. This is known as construction work in progress. Opponents say it could lead to higher utility rates, but others suggest it is a more efficient and affordable way to finance new domestic energy generation avoiding higher interest loan payments and long-term finance charges.
In concert with the passage of this bill, Evergy announced it will be building a new natural gas plant in Nodaway county creating hundreds of jobs and spurring millions in economic development.
And Ameren Missouri recently announced a major investment in Jefferson County, constructing an 800MW simple-cycle gas plant, along with a 400MW battery storage facility, the first of its kind in Missouri.
Future Test Year
The bill also allows water and gas companies to base their customer’s rates on projected costs, not actual costs, again in the interest of better planning and future projection, which can benefit consumers.
Customer Opt-outs
It also allows Missouri residents more freedom to opt-out of smart meter programs. Smart meters gather critical information allowing utilities to better serve their customers, but in Missouri freedom comes first and we understand this should be voluntary, so residents should not be penalized for opting out.
Legacy Consumer Protections
There are also strong consumer protections in this bill. Senators Beck, McCreery, and Roberts worked hard to include guard rails to protect low-income households and seniors from undue or burdensome charges. Some of those protections include:
Overall, SB4’s passage should be looked at as one of the most significant pieces of legislation this session, that is already impacting our energy economy in a positive way.
Meanwhile in Washington, D.C…
The President’s Big Beautiful Bill Impacts Energy Sector
As promised, the President delivered on his commitment to end certain subsidies in the renewable energy sector. The massive tax and spending package passed by Congress did just that, though it encourages investment in other domestic, more traditional energy production as well. Critics say that this will drive up consumer utility rates and cost jobs, while others say it will encourage more infrastructure investment by speeding up the permitting process and reducing red tape.
Only time will tell how this bill will truly impact our energy economy. The renewable energy industry is now a multi-billion dollar industry, no longer in its infancy. While it may experience some new challenges, it will continue to grow and provide new domestic energy generation from coast to coast.
Some of the significant sections include:
Clean‑Energy Tax Credit Rollbacks & Expirations
Commercial Energy & Low‑Carbon Infrastructure
These tax credit rollbacks are a tough pill to swallow for the renewable and EV sectors, but as mentioned above, these industries will adjust, adapt, and continue to provide domestic energy generation and economic growth in Missouri and across the country.
