Power infrastructure: Allowing a surcharge
Back in 2003, Missouri lawmakers passed a law allowing water and gas utili-ties to request a surcharge to upgrade infrastructure deficiencies. This year electric utilities are asking for the same opportunity.
The bill would enable electric utili-ties to seek and receive expedited approval from the Public Service Commis-sion for a simple surcharge to upgrade power poles and other elements of the power grid without having to gain approval in more complex time consuming rate case.
Ameren Missouri, Kansas City Power & Light and The Empire District Electric Co. are asking for the simplified process, which they say could enhance chances for Missouri to receive a grant from the U.S. Department of Energy to build highly coveted small modular nuclear reactors.
The department awarded a grant to Tennessee but is expected to issue another. A plan developed by Ameren and Westinghouse relies on the existing Callaway nuclear site and collaboration with the University of Missouri. The infrastructure improvement plan sought in today’s legislation would improve the state’s chances, proponents say.
Even before the small nuclear generator option became popular as the best way to expand nuclear power generation, worry about the power grid existed. Utilities argue it makes no sense to bog down infrastructure maintenance in full blown rates cases involving fuel costs and other larger factors. An infrastructure case would have to be acted on by state regulators within 120 days and could only be levied on ratepayers for three years without an extension in a regular rate case.
Cybersecurity upgrades also could be funded in the accelerated process.
A surcharge would have to be approved by the regulatory commission after a public hearing.
Consumer protection lobbyists will argue against any rate increase as a matter of general principle, but a well-considered surcharge for this purpose makes sense. The new legislation does not authorize a rate increase. It merely allows a process for considering an expedited lim-ited surcharge.
Easier approval of funding for infrastructure projects would lead to in-creased employment and maintenance of all-important infrastructure. There is no reason the new process would result in higher costs overall.
-Henry J. Waters III
