ӣ����Ƶ

Is it OK for utility companies to raise costs for consumers on a promise to build more infrastructure to power potential large artificial intelligence and manufacturing plants that could threaten the future reliability of Missouri’s electricity grid?

The Senate answered that question with a resounding yes, passing the legislation to the House on a 22-11 vote. Though the vote wasn’t close, it fell on unusual ideological lines.

According to a Consumers Council of Missouri report, Missourians with Ameren electric, Spire gas and Missouri American Water service will most likely be faced with an increase of at least $1,100 annually to their utility bills if the legislation goes into law. Research done by groups representing large consumers estimate the cost could exceed $2,500 annually for the average ratepayer.

Five Democrats and six Republicans spoke up strongly against the legislation. “My constituents don’t mind paying for service, but they don’t want to pay a penny more than they have to, and that’s what we’re fighting about right now,” Sen. Tracy McCreery, D-Olivette, the legislation’s main opponent, said in an interview.

After adjustments to the policy to ease some consumer concerns, McCreery still called it a “bad bill.”

The legislation’s sponsor Sen. Mike Cierpoit, R-Lee’s Summit, said it’s possible the proposal would raise rates — but that he predicts rates are going to go up, regardless. He said that the bill would allow rates to rise more gradually, and it would be easier to build new facilities to meet rising demand.

One provision repeals a measure Missouri voters approved by a wide margin in 1976 prohibiting what’s known as “construction work in progress.” CWIP allows companies to be paid by ratepayers as they build projects, rather than wait until after they are in use.

Utility company justifications for CWIP in 1976 nearly mimic Cierpoit’s arguments for the law. Utility companies claimed that without it, they would not be able to attract enough investment to meet Missouri’s energy needs. Companies also argued that with the change, rates would raise more gradually.

The corporate push then came as Union Electric began work on the Callaway Nuclear Plant near Fulton. The plant was completed without CWIP.

“I have a fundamental disagreement with an interest-free loan being placed on the back of my constituents,” said Sen. Joe Nicola, R-Independence, speaking out against the CWIP provision.

Sen. Mike Moon, R-Ash Grove, complained utility companies “get all the breaks.” He tried and failed to remove the “construction work in progress” language from the bill.

Other Republicans were moved by interactions with constituents. “They (constituents) were very clear they didn’t want this utility bill to pass,” said Sen. Brad Hudson, R-Cape Fair, a member of the hard-right Freedom Caucus.

While McCreery and four other Democrats were staunchly against the legislation, it drove a wedge in the Senate Democratic caucus. Five Democrats voted for the bill despite the state party repeatedly saying their priority this session is to lower costs for consumers.

Senate Minority Leader Doug Beck, D-south ӣ����Ƶ County, said he voted for the bill, “because there will be a lot of jobs created (and) economic activity that will come (with the legislation).” Beck added that he thinks utility rates are likely to increase in the future, and the bill could help bring good-paying manufacturing jobs into Missouri.

Major labor unions supported the bill. A political action committee associated with Beck received $150,000 last year from the United Association, a labor union with around 384,000 members nationally.

Beck is a pipefitter and member of United Association Local 562. Scott Ramshaw, representing UA Local 562 spoke in favor of Cierpoit’s legislation during a committee hearing.

The legislation is Sena