Planning for Missouri’s energy future

 

What's at stake? 

Demand for electricity in Missouri is expected to increase by about 25 percent over the next 20 years. While coal-fired power plants generate much of Missouri’s electricity – about 80 percent – these plants will either need to be upgraded or shut down as federal environmental regulations tighten. However, no single source of energy can provide all of our needs. To ensure that Missouri residents continue to get reliable, secure, affordable and clean energy, we must expand our existing sources, such as nuclear, and explore new ones like biomass, solar and wind. We must also look at developing clean coal technologies.

By focusing on securing our energy future, we can boost the economy, create jobs and cut emissions statewide. There are two important elements that will help drive this strategy, including a clean energy standard and further development of safe, nuclear energy.

Keys to a better future

Clean energy standard 

Clean energy projects, whether they are from wind or solar, nuclear energy or other sources, are crucial to the future energy and economic stability of our state. A clean energy standard typically requires a state to supply a specific percentage of its electricity from qualifying clean energy resources. Such a standard can bolster the economy, generate new jobs and reduce emissions.

We support a broad – but aggressive – energy standard as long as it does not burden Missouri’s residents, municipalities and businesses, which enjoy some of the lowest utility rates in the nation. Any potential rate increase should be fairly distributed across the rate base and not favor one group over another. We also support a standard with renewable energy credits that can be used for compliance, as long as they come from a Missouri-based energy-producing facility and/or surrounding states.

State regulators must also determine whether the compliance costs related to a clean energy standard are in the best interest of Missouri ratepayers. Any compliance process should be fair and efficient as well as encourage investment and development of energy projects in the state.

Nuclear energy 

There is no debate that nuclear power plants provide clean and reliable energy. These plants also provide jobs and boost the economies in their local communities. For example, Ameren’s nuclear plant in Callaway County, Mo., which has been operating since 1984, provides electricity for about 780,000 households. It also employs more than 1,000 workers and generates $9 million in annual tax revenue to the county.

Even if we invest in aggressive energy efficiency programs and other renewable sources, expanding the use of nuclear energy may be our best option for keeping energy costs down over the long term. In 2011, a bill that would have kept open the option of the possible construction of a second nuclear power plant in Callaway County stalled in the Missouri Legislature. The legislation did not commit the state to build the plant. The bill would have also allowed investor-owned utilities to recover the costs for a nuclear site permit after it is awarded.

The cost to the average Missouri household to keep nuclear power an option was less than $2 a year. The legislation also would have saved Missouri consumers about $80 million in interest costs if the plant was actually built. Moreover, since all of Missouri’s electric service providers were collaborating on this project, their customers would have benefited from energy produced by the plant.

MBEF continues to support and encourage legislative initiatives that might bring more affordable and clean power sources to our state.

Reaping the benefits

Affordable electricity 

Missouri consumers already pay some of the lowest energy rates in the nation. Given the need to replace our aging power plants, it’s vital that Missouri keep all energy options on the table since that may be the state’s best strategy for keeping future costs low.

Jobs and economic growth 

The investment and development of renewable energy would be a boon to Missouri’s economy, attracting new businesses and creating needed jobs. But the state seriously must also consider expanding current energy sources – mainly nuclear power.

For example, it was estimated that a second Ameren nuclear plant in Callaway County would create about 3,000 new construction jobs. During the six years it would take to build the plant, it would also spur 8,000 indirect jobs and contribute more than $1.2 billion per year to Missouri’s economy. After it’s built, a second plant would add about 400 permanent jobs with an annual payroll of $37 million.