JEFFERSON CITY | Some Missouri residents and businesses soon could see a new charge on their electric bills — a fee for using less energy.
Though it might seem illogical, the new energy efficiency charge has support from utilities, most lawmakers, the governor, environmentalists and even the state’s official utility consumer advocate. The charge covers the cost of utilities’ efforts to promote energy efficiency and cut power use.
The assumption is that charging consumers for those initiatives ultimately will cost less than charging them to build the new power plants that will be needed if electricity use isn’t curtailed.
Legislation pending before Gov. Jay Nixon would set the criteria for state utility regulators to approve the energy-savings charges. If he signs the bill, the new law would take effect Aug. 28.
When lawmakers adjourned in mid-May, Nixon listed the little-publicized energy legislation as among his proudest accomplishments, describing it as a “good, good start on an energy policy” to be developed by his Department of Natural Resources.
“To save power is the equivalent of making power,” Nixon said, “and it’s a pretty seismic shift” in Missouri’s energy strategy.
Usually, regulators allow utilities to recoup the cost of building power plants or buying more power to meet customer demand. Recently, the Missouri Public Service Commission began allowing some utilities to pass along to customers the cost of programs that reduce demand for electricity.
For example, the commission last week approved a program in which St. Louis-based AmerenUE can offer credits to businesses that voluntarily shut down or scale back their electricity use during peak demand. AmerenUE will be able to recoup the cost for the program that starts Thursday by increasing the rates it charges business customers.
Kansas City Power & Light Co. already has 19 energy efficiency and demand-reduction programs, said Chuck Caisley, the company’s senior director of public affairs. He said the Public Service Commission is allowing the company to recoup up to $50 million of the programs’ costs under a rate plan in effect through 2010.
One of the company’s more popular energy-saving initiatives has provided free programmable thermostats to about 34,000 residential customers in Missouri and Kansas. KCP&L can remotely control the devices to reduce the frequency at which air conditioners run during peak demand times. The power company overrode customers’ air conditioners four times last year and twice so far this summer, Caisley said.
Analysis | With new charge, saving electricity could end up costing Missourians - Kansas City Star
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