All Roll Calls
Yes: 28 • No: 8
MissouriSB42025 Regular SessionSenateWALLET
Modifies and creates new provisions relating to utilities
Sponsored By: Mike Cierpiot (Republican)
Signed by Governor
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
22 provisions identified: 10 benefits, 1 costs, 11 mixed.
Households gain heat and cold shutoff protections
Residential gas and electric customers, including apartment tenants, gain protections against shutoffs for unpaid bills during dangerous weather. From June 1–September 30, cooling service is protected when forecasts predict temperatures above 95°F or heat index above 105°F. From November 1–March 31, heating service is protected when forecasts predict temperatures below 32°F. These rules use local National Weather Service forecasts issued between 6 a.m. and 9 p.m., looking ahead 72 hours. Service must provide heating or cooling, or run the home's only equipment for that purpose. Protection also covers periods when utility staff cannot reconnect service during qualifying weather.
Lower tax assessments for older solar equipment
Qualifying solar equipment is assessed for property taxes at 5% of its true value. The solar system must have been built and producing energy before August 9, 2022. Covered equipment includes panels, racks, inverters, and related equipment. Actual tax savings depend on local tax rates.
Approved power plans speed project reviews
Commission approval of a reasonable and prudent preferred power plan can authorize construction or acquisition of named power resources. Construction must start, or an acquisition agreement must be signed, within the four-year action period. The related certificate review then covers company qualifications, financing ability, and project location. A decision is due within 120 days, with up to 60 extra days for good cause. Where plan flaws remain, unapproved additions do not qualify for this limited review or the linked early construction-cost recovery.
Large gas users gain growth discounts
Qualifying new gas customers adding at least 270,000 CCF annually can receive discounts up to 25% for up to four years. Existing customers adding at least 135,000 CCF annually can receive 25% for up to four years. Discounts cover only variable base-rate charges and require a government economic-development incentive and written agreement. Customers must apply before publicly announcing the project and at least 90 days before requesting the discount. Added load excludes offsets from customer or affiliate accounts closed within 12 months; eligibility is checked within 24 months and annually afterward. Discounts must be reduced prospectively if they fail to cover variable costs and contribute to fixed costs.
More water companies can seek infrastructure surcharges
Water or sewer companies above 8,000 connections can seek approval for an infrastructure replacement surcharge on customer bills. They qualify through water connections, sewer connections, or the law's specified combination of both. The existing cap remains 15% of the water or sewer base revenue requirement, with statutory exceptions. Approval requires a general rate case decided or dismissed within three years, or a newly filed or pending case.
Traditional meter choice brings fees and duties
Beginning July 1, 2026, residential customers of rate-regulated utilities can replace advanced or hub meters with traditional meters. Utilities choose the location and must replace meters within a commercially reasonable time; fees cannot exceed $125 once and $15 monthly. The Public Service Commission must issue opt-out rules by June 30, 2026. Customers choosing self-reading must report accurate usage each billing cycle through a secure process, with a utility reading every 12 months. Missing, late, or inaccurate reports allow manual readings or approved estimates; certain unpaid amounts face interest capped at 5%. Intentional false reports can bring approved charges, and utilities generally are not liable for self-reading injuries except for gross negligence or willful misconduct.
Electric companies must plan sixteen years ahead
The commission must begin a resource-planning proceeding by August 28, 2027, and repeat it every four years or as needed. Covered electric companies must file plans every four years, looking at least 16 years ahead. Plans must compare resource options, costs, bill impacts, environmental compliance, and a four-year action plan. Initial filings cannot begin before the first day of the nineteenth month after the filing schedule is published. The law excludes the corporation identified in its statutory exception.
Electric customers can pay construction costs sooner
With commission approval, electric companies can include qualifying construction costs in rates before projects begin operating. This replaces the usual accounting allowance for financing those construction costs. Eligible amounts cannot exceed estimated project costs or eligible spending within the estimated construction period. Customers must receive refunds with interest for costs later found imprudent or projects not placed in service within a reasonable time. Separate authority for new natural gas generating units expires December 31, 2035, unless extended through December 31, 2045. That extension requires a hearing in 2035 and a showing of good cause.
Federal tax cuts can change electric rates
Federal electric-company income tax cuts between January 20, 2025, and December 31, 2029, trigger one-time commission authority to adjust rates. The commission must record the financial impact as a deferred regulatory asset until rates change. Deferred amounts are then spread over time in a later rate case. The commission can instead delay all or part of the impact until the next general rate case after a public-interest finding.
Longer electric cost deferrals face tighter caps
Electric companies already using the covered cost deferrals can continue through December 31, 2035. They can seek five more years by applying by December 31, 2033, with commission approval after a hearing. For deferrals from January 1, 2024, the recovery cap uses 2.25% annually, down from 2.5%, prorated monthly against the prior retail revenue requirement. The cap covers rate cases concluded on or after August 31, 2023, while deferral authority continues. Amounts above the cap must be excluded from the investment base used to set rates and deducted from deferred balances. The section expires December 31, 2040, but approved recovery of remaining balances continues.
Power plant closures face reliability safeguards
Electric companies must make reasonable efforts to put approved replacement generation into service when an existing plant closes. Until it operates fully, they must seek available firm capacity sufficient to meet regional reserve requirements. Replacement power must meet summer and winter capacity standards and be in Missouri or a qualifying neighboring state. Companies must certify compliance when it enters service; the commission can allow less replacement after a significant, long-term demand loss. Plant-closing settlements require company findings that they serve customers' best interests and maintain reliability. Companies cannot use those settlements to pursue pollution cuts or corporate or societal goals beyond legal requirements.
Projected utility costs face customer refund checks
Beginning July 1, 2026, gas, water, and sewer companies can request rates based on projected costs. The projection covers the first 12 full calendar months after the legal deadline for the rate case. The commission can reject this approach when it harms the public interest. Companies must reconcile covered investments and expenses within 45 days after that year ends. Lower actual amounts must be returned in the next general rate case, with carrying costs at the company's weighted average cost of capital. Companies cannot also recover that year's plant investments through the separate adjustment mechanisms listed in the law.
Utility bonds add charges with customer safeguards
Electric companies can seek bonds for prudent plant-retirement costs or extraordinary costs that otherwise cause extreme rate impacts. The commission must issue a financing order within 215 days and find the financing reasonable, publicly beneficial, and financially beneficial to customers. Approved bill charges generally cannot be avoided and are adjusted at least annually; qualifying special-contract customers served on August 28, 2021, are excluded. For covered plant costs, related net tax benefits reduce bonds issued, and specified deferred taxes stay outside future rate-setting investment balances. Financing orders must allow companies a return at their approved cost of capital on money advanced for bond reserves. After bonds are issued, legal protections limit changes to the charges securing repayment.
Households can leave mandatory time-based electric rates
Affected residential electric customers can choose rates that do not vary by time of use. This applies where the commission ordered mandatory time-of-use rates before the section's effective date. The commission must authorize the choice and finish the transition within one year after that date. The law does not set savings for customers who switch.
Possible utility discounts for high-burden households
The Public Service Commission can approve lower residential electricity, gas, or water rates based partly on household utility burden. Approved discounts reduce the normal base residential rate. Any eligibility checks must come from an independent third party chosen through a commission process involving utilities and Public Counsel. The law sets no discount amount and does not require approval of a discount program.
Gas safety penalties follow federal limits
Maximum penalties for covered natural gas safety violations now follow amounts set by the U.S. Secretary of Transportation. This replaces older state dollar limits and scheduled increases. The rule covers federally required safety standards and stricter commission-approved standards. City-owned gas plants are covered only for violations of natural gas safety laws, rules, or orders.
Large power users must cover service costs
Electric companies serving more than 250,000 customers must submit special rates for users expecting peak demand of at least 100 megawatts. Companies with 250,000 or fewer customers on January 1, 2025, must cover users expecting at least 50 megawatts. The commission can require similar rates below those thresholds. These schedules must aim to make large users cover their share of service costs without shifting costs to other customers.
Large renewable buyers avoid some compliance costs
Qualifying buyers using over 80 average megawatts can avoid renewable-standard compliance costs in proportion to retired certificates and annual usage. Their utility must have had more than 250,000 but fewer than 1 million Missouri retail customers at year-end 2024. Buyers must contract for qualifying certificates or qualifying solar or wind energy and certificates. Qualifying solar or wind resources must be in the Southwest Power Pool region and have begun operating after January 1, 2020. Certificates are retired for the buyer, not utility compliance; qualifying energy is removed from sales used to calculate utility renewable obligations. Eligibility must be verified annually by the utility, or the buyer can report directly to the commission.
Some large users avoid utility bond charges
Electric customers with at least 80 megawatts of load can avoid specified bond charges under approved market-based rates. Their utility must have had an approved market-based rate plan by the end of 2022. The exemption covers charges approved before the customer's service began. Future extraordinary-energy charges are also excluded when the customer directly paid its own energy costs through that rate plan. Service outside the qualifying plan is not exempt.
Sewer trustee pay depends on board type
Covered sewer trustees can receive up to $100 per regular or special meeting, generally limited to two monthly and one weekly. Common sewer districts in first-classification counties can pay for four meetings monthly, still limited to one weekly. Common, ten-member, and reorganized district boards must repay actual duty expenses. Ten-member and reorganized board trustees can also receive reasonable pay for non-trustee services, subject to state conflict-of-interest law. Trustees on the specified eleven-member board serving two counties receive no compensation, but can receive reasonable expense repayment.
Utility heating services face competition safeguards
Utilities generally cannot directly provide heating, ventilation, and air conditioning services; affiliate services remain subject to the Fair Competition Law. Grandfathered utilities must have provided service five years before August 28, 1998, generally in areas served before August 28, 1993. Exceptions also allow specified emergency, legally required, and qualifying program services. Utilities hiring contractors for this work must offer an open qualification process, vendor registration, and consideration for bids. The Public Service Commission cannot issue rules, rates, or orders that permit violations of the Fair Competition Law.
Utilities fund regulators under new assessment caps
The commission's assessment cap for non-telecom utilities rises from 0.315% to 0.450% of gross in-state operating revenue. Covered phone and internet voice providers have a separate 0.250% cap on their combined revenue. Assessments fund regulation and are allocated using regulatory expenses and revenues; year-end balances reduce the next year's assessments. Beginning July 1, 2026, utilities also fund Public Counsel's regulatory work, capped at 0.057% of gross in-state operating revenue. Water and sewer companies form one group for that assessment; telephone and telegraph companies are exempt. These are utility payments, not automatic household charges, though utilities can seek to pass costs into bills.
Sponsors & Cosponsors
Sponsor
Mike Cierpiot
Republican • Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 3/13/2025
Reported Do Pass
Yes: 5 • No: 2
House vote • 3/11/2025
Reported Do Pass
Yes: 6 • No: 2 • Other: 1
House vote • 3/10/2025
Reported Do Pass
Yes: 17 • No: 4 • Other: 2
Actions Timeline
Delivered to Secretary of State (G)
4/9/2025Approved by Governor (G)
4/9/2025Delivered to Governor
3/25/2025Signed by House Speaker
3/24/2025HouseHouse Message
3/13/2025HouseTruly Agreed To and Finally Passed
3/13/2025Title of Bill - Agreed To
3/13/2025Taken Up for Third Reading
3/13/2025HouseReported Do Pass - AYES: 5 NOES: 2 PRESENT: 0
3/13/2025HouseVoted Do Pass
3/13/2025HouseExecutive Session Completed
3/13/2025HouseReferred: Fiscal Review
3/11/2025HouseReported Do Pass - AYES: 6 NOES: 2 PRESENT: 1
3/11/2025HouseVoted Do Pass
3/11/2025HouseExecutive Session Completed
3/11/2025HouseReferred: Rules - Administrative
3/10/2025HouseReported Do Pass - AYES: 17 NOES: 4 PRESENT: 2
3/10/2025HouseVoted Do Pass
3/10/2025HouseExecutive Session Completed
3/10/2025HousePublic Hearing Completed
3/10/2025HouseReferred: Utilities
2/27/2025HouseRead Second Time
2/26/2025HouseReported to the House and First Read
2/25/2025House
Bill Text
Truly Agreed to and Finally Passed
3/13/2025
Introduced
Perfected
Related Bills
HB3, Appropriates money for the expenses, grants, refunds, and distributions of the Department of Higher Education and Workforce Development
HB8, Appropriates money for the expenses, grants, refunds, and distributions of the Department of Public Safety and the Department of National Guard
HB11, Appropriates money for the expenses, grants, refunds, and distributions of the Department of Social Services
HB10, Appropriates money for the expenses, grants, refunds, and distributions of the Department of Mental Health, the Department of Health and Senior Services, and the Missouri Health Facilities Review Committee
SB79, Modifies provisions relating to health care
SB271, Modifies provisions relating to emergency services