Energy Infrastructure Report Card

MISSOURI

Energy Infrastructure Report Card

NI: NEEDS IMPROVEMENT

Missouri is heading toward an energy crisis. From the generating plants to distribution networks, much of the energy infrastructure in Missouri is nearing or reached the end of its lifecycle. This could lead to potential power failures that put our families at risk and our businesses at a loss. In fact, according to the American Society of Civil Engineers (ASCE), the average cost to a commercial business of a one-hour power outage is $1,000 – and that’s just one hour.

Granted, Missouri energy companies have been striving to diversify this state’s energy portfolio with advancements in solar, wind and nuclear energy development. However, even with aggressive state and federal energy policies that require renewable production standards in the coming decades, Missouri needs to ensure our current power grid is up-to-date, dependable, and affordable to consumers.

There are several dozen electricity-generating power plants in Missouri that are operated by investor-owned utilities, rural electric cooperatives, municipalities and even one by the University of Missouri.These facilities produce power for millions of Missouri consumers. With the exception of two newer coal fired power plants in Kansas City and Springfield, most of the power plants operating in Missouri were built more than 40 years ago and some more than 60 years ago.  Missouri’s sole nuclear plant has been on line for over 30 years.

Nationally, with the advent of the small kitchen appliance, air conditioner, and television set in the 1950’s and 60’s came an appetite for energy that was insatiable. As a result, infrastructure to support this new-found demand was built rapidly and paid for by the new growth in a seemingly ever-expanding market.

It’s in the best interest of Missouri’s consumers that the utilities put available investment dollars into the upkeep of power plants; however, many of these aging facilities are still in need of major repairs and modernization.

Transmission facilities are the next step in the process of getting the electricity that’s generated in the power plants, across the state to large substations that bring this high voltage down to one that can more easily be distributed to communities.  Many of these transmission systems are also in need of modernization. Technology around this part of the energy delivery process has advanced tremendously in recent decades, but the equipment in these facilities is from the mid-part of the last century.

Not only would updated transmission equipment ensure a far less likely scenario of disrupted service, newer technology would ensure efficient power that would cost consumers less.

Distribution equipment is what brings the electricity into our communities, homes and businesses.Substations, transformers, poles, wires and underground cables deliver this equipment to the end-user; the consumer.

These facilities, which include major networks of poles and power lines are mostly above ground, outside enduring the elements. So, in addition to the equipment being some of the oldest parts of our electric utility infrastructure, it also has to endure the elements.  Furthermore, when severe weather hits, substations, poles and wires need to be in good enough condition to stand up to cold temperatures, snow and ice storms, high winds and even tornadoes. However, with structures that date back a half a century many substations and distribution lines are in need of immediate repair.

A network of power lines that consumers cannot see and may be in far worse condition are those below ground, which are commonly found in larger cities. The tunnels that lie beneath manhole covers found on many city streets are also home to electric lines and wires that carry power to residents and businesses. These tunnels and below ground systems date back to the initial development of the city itself, which, in some cases, goes back more than one hundred years. These lines are challenging to maintain and are subject to the strength of the structures that carry them.

Missouri isn’t leading the country in clean and renewable energy sources, but the state’s energy providers have made enormous leaps in recent years. In fact, some providers and municipalities have renewable energy standards plans that rival federal mandates.  Missouri has a renewable energy standard in place for investor owned utilities and as a result, we’ve seen growth in Missouri generated renewable energy. Policy issues remain to encourage further growth, but Missouri, though gradually, is moving in the right direction.

Nuclear power is another early example of a clean energy source for Missouri. The Callaway Energy Center has been in operation since the 1984. Callaway has had upgrades to its major components in recent years to help ensure it’s ready for a 20-year license extension.

This safe, clean, dependable, low-cost workhorse has been in service for 30 years, and with its recent Nuclear Regulatory Commission (NRC) approval, will operate until 2044.The NRC’s study of earthquake vulnerabilities to nuclear plants across the country put Callaway as having the lowest probability of risk. As endeavors like the Small Nuclear Reactor remain options, other advancements in this field may still come to our state.

The U.S. Department of Energy and experts across the globe see nuclear power as a crucial element to moving toward a cleaner, more efficient U.S. energy portfolio.

Solar power has made great strides as an energy source in Missouri. We are seeing significant advances in residential solar use.  Utility scale solar projects are also on the rise. 

Late last year, Ameren Missouri flipped the switch to turn on the largest investor-owned solar park in Missouri that provides power to 650 homes. This 19-acre property channels energy from 19,000 solar panels that produce 5.7 megawatts of power. When projects like this are combined with other large scale operations like those in Springfield and Butler, it’s clear that the sun, as an energy source offers growing opportunities for Missouri.

Missouri’s energy policies date back further than most of the state’s rapidly aging infrastructure nearly 100 years. As a result, there is no incentive structure to enable many of our state’s utilities to repair or replace these critical facilities and equipment.

In fact, Moody’s Investor Service said in 2013, “historically, Missouri has been considered one of the more difficult regulatory jurisdictions in the US for electric utilities, characterized by regulatory lag and contentious disallowances at times.”

Without a major overhaul of energy policies at the state level, Missouri consumers are unlikely to see the energy grid brought up to date, not to mention incorporate new, efficiency-driven technology.

Finally, neglecting a change to these policies minimizes the ability of our state’s electric utilities to make the needed investments in our grid, which puts Missourians and business at risk.

The General Assembly has much work to do on this subject.  If we want to live in a high tech, high efficiency state, then we must adopt a regulatory framework that encourages investment in energy infrastructure while preserving reliability, security and affordability.