MO House Panel Approves Bill for Nuclear Plant
March 3, 2009
(The Associated Press)
A Missouri House committee added some consumer protections Tuesday
while endorsing legislation designed to help AmerenUE build a second nuclear power plant.
But the bill still has a long way to go before passage.
The House Utilities Committee approved the bill 12-1 after making
some changes designed to help consumers. But the legislation still
faces resistance from some senators and from Gov. Jay Nixon, who
contends AmerenUE should get a federal license for a second power
plant before any state laws are changed.
The issue hinges on how utilities should pay for new power plants.
A 1976 law approved by voters requires that electric companies wait
until a new power plant is online before customers can be charged for
the construction costs. Lawmakers this session are considering whether
to allow utilities to bill customers for the financing costs of
unfinished plants that use nuclear, new coal technologies and
renewable energy sources such as wind and solar.
The legislation is backed by labor groups and utilities and
condemned by some environmentalists, consumer activists and
corporations that use large amounts of electricity.
St. Louis-based AmerenUE has applied with the federal Nuclear
Regulatory Commission for a license to build a second nuclear reactor
about 25 miles northeast of Jefferson City. AmerenUE hasn't yet decided
whether it will actually build the new plant but contends that the
only way to afford the multibillion project is to repeal the 1976 law.
Lawmakers have proposed giving state utility regulators the
authority to decide whether to allow construction cost recovery and
letting utilities seek quarterly rate increases to cover additional
capital costs.
That initial proposal included deadlines for the Public Service
Commission to decide whether to let utilities bill customers for new
power plants and limited the ability of the courts to consider
disputes.
The version approved by the House committee Tuesday includes
several changes, such as giving state utility regulators six months
instead of three months to decide whether to let utilities recover
some costs during plant construction.
Under the original bill, utilities that abandon new power plant
construction could still charge consumers for those construction
costs. The committee's version allows for that but makes utilities
wait before recouping all their costs and requires that consumers be
reimbursed first if a utility abandons a project and then sells a
federal license.
Rep. Ed Emery, the House sponsor of the utility legislation, said
he thinks the changes steer the bill back to it's original purpose.
"It will make available to the citizens of Missouri the financing
that is needed to produce baseload (power) generation," said Emery, R-
Lamar.
At least one of the lawmakers endorsing the legislation called the
original version "an absolute piece of junk" that was filled with
provisions that would hurt consumers. Rep. Jake Zimmerman said there
are still problems and that he voted for it because he wanted the
debate to continue but predicted the Senate would never accept the
legislation without changes.
The House version is "dead with a capital 'D' courtesy of our
friends on the Senate side," said Zimmerman, D-Olivette.
Senators have been skeptical of the legislation, citing a lack of
consumer protections. AmerenUE leaders were grilled for more than an
hour last month when a Senate committee considered the legislation.
Sen. Brad Lager, the chairman of the panel considering the
Senate's version of the utility bill, said he still thinks a bill can
pass this session but that lawmakers are seeking the right mix for
protecting electric customers and meeting utilities' needs.
"I think there's still a will to do it, but there's a balance that
has to be met," said Lager, R-Savannah. "And that's just taking time."
(The Associated Press)
A Missouri House committee added some consumer protections Tuesday
while endorsing legislation designed to help AmerenUE build a second nuclear power plant.
But the bill still has a long way to go before passage.
The House Utilities Committee approved the bill 12-1 after making
some changes designed to help consumers. But the legislation still
faces resistance from some senators and from Gov. Jay Nixon, who
contends AmerenUE should get a federal license for a second power
plant before any state laws are changed.
The issue hinges on how utilities should pay for new power plants.
A 1976 law approved by voters requires that electric companies wait
until a new power plant is online before customers can be charged for
the construction costs. Lawmakers this session are considering whether
to allow utilities to bill customers for the financing costs of
unfinished plants that use nuclear, new coal technologies and
renewable energy sources such as wind and solar.
The legislation is backed by labor groups and utilities and
condemned by some environmentalists, consumer activists and
corporations that use large amounts of electricity.
St. Louis-based AmerenUE has applied with the federal Nuclear
Regulatory Commission for a license to build a second nuclear reactor
about 25 miles northeast of Jefferson City. AmerenUE hasn't yet decided
whether it will actually build the new plant but contends that the
only way to afford the multibillion project is to repeal the 1976 law.
Lawmakers have proposed giving state utility regulators the
authority to decide whether to allow construction cost recovery and
letting utilities seek quarterly rate increases to cover additional
capital costs.
That initial proposal included deadlines for the Public Service
Commission to decide whether to let utilities bill customers for new
power plants and limited the ability of the courts to consider
disputes.
The version approved by the House committee Tuesday includes
several changes, such as giving state utility regulators six months
instead of three months to decide whether to let utilities recover
some costs during plant construction.
Under the original bill, utilities that abandon new power plant
construction could still charge consumers for those construction
costs. The committee's version allows for that but makes utilities
wait before recouping all their costs and requires that consumers be
reimbursed first if a utility abandons a project and then sells a
federal license.
Rep. Ed Emery, the House sponsor of the utility legislation, said
he thinks the changes steer the bill back to it's original purpose.
"It will make available to the citizens of Missouri the financing
that is needed to produce baseload (power) generation," said Emery, R-
Lamar.
At least one of the lawmakers endorsing the legislation called the
original version "an absolute piece of junk" that was filled with
provisions that would hurt consumers. Rep. Jake Zimmerman said there
are still problems and that he voted for it because he wanted the
debate to continue but predicted the Senate would never accept the
legislation without changes.
The House version is "dead with a capital 'D' courtesy of our
friends on the Senate side," said Zimmerman, D-Olivette.
Senators have been skeptical of the legislation, citing a lack of
consumer protections. AmerenUE leaders were grilled for more than an
hour last month when a Senate committee considered the legislation.
Sen. Brad Lager, the chairman of the panel considering the
Senate's version of the utility bill, said he still thinks a bill can
pass this session but that lawmakers are seeking the right mix for
protecting electric customers and meeting utilities' needs.
"I think there's still a will to do it, but there's a balance that
has to be met," said Lager, R-Savannah. "And that's just taking time."