Will Missouri’s New Utilities Bill Raise Your Power Bill?

📈 POSSIBLE INCREASES IN UTILITY BILLS

1. Assessment Increase to Public Utilities (Section 386.370)

• What it says: Raises the total amount that can be assessed to public utilities from 0.315% to 0.45% of gross intrastate operating revenues.

• What it means: Utilities often pass these increased regulatory costs to customers. So, while it’s a small percentage increase, it could translate to slightly higher rates on bills—especially if utilities push these costs through rate cases.

2. Advanced Meter Opt-Out Fees (Section 386.820)

• What it says: If you want to opt out of a smart/advanced meter, you can, but:

  • You may pay up to $125 one-time for meter removal and install.

  • You may also pay up to $15/month for the manual-read traditional meter.

• What it means: Customers concerned about smart meters will have a financial penalty to opt out, which could add up fast.

3. Construction Work in Progress (Section 393.135)

• What it says: Utilities can now include new natural gas project construction costs in the rate base (i.e., the portion of costs used to calculate your bill).

• What it means: This shifts some cost burden earlier to consumers, before a plant is even operational. Could raise rates, especially if multiple big projects occur.

4. Discount Incentives for Big Gas Users (Section 393.1645)

• What it says: Large gas users can get 25% discounts.

• What it means: While great for economic development, residential customers may shoulder more of the cost burden to make up for this discount if the utility doesn’t fully recover expenses through growth.

🛑 PROTECTIONS OR POTENTIAL REDUCTIONS

5. Hot and Cold Weather Rules (Sections 393.108 & 393.109)

• What it says: Disconnection is prohibited if temps:

  • Are forecast above 95°F or below 32°F within the next 72 hours (up from 24).

• What it means: Residents are less likely to have power shut off during extreme weather, offering more stability and protection.

6. Rate Reconciliation (Section 393.150)

• What it says: If utilities overestimate costs during rate-setting using “future test years,” the overcharged amount must be returned to customers.

• What it means: This is a strong consumer safeguard—it limits long-term overpayment and forces utilities to reconcile bills to actual spending.

7. Federal Tax Reduction Pass-Through (Section 393.138)

• What it says: If the federal corporate tax rate drops, the savings must be calculated and eventually reflected in consumer rates.

• What it means: If Congress cuts taxes for utilities, Missourians should see bill reductions down the road.

8. Special Residential Discount Program (Section 393.1680)

• What it says: PSC can approve discounted residential rates based on household “utility burden.”

• What it means: This opens the door for income-based rate relief, which could reduce bills for lower-income households if implemented.

✅ Conclusion: Will Utility Bills Go Up or Down?

➡ Short-term: Some fees and cost shifts (e.g., smart meter opt-outs, construction work) could increase bills modestly.

➡ Long-term: The bill builds in protections, refund mechanisms, and the possibility of rate reductions, especially tied to future corporate tax cuts or if utilities overcharge based on projections.

➡ Variable Impact: If you’re low-income or eligible for new discount programs, you might pay less. If you’re a general ratepayer or opt out of smart meters, you could pay more.

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