Missouri utility regulators on Thursday approved a tariff to ensure large power users on its system are responsible for paying their fair share of the effect their usage has on the power grid and other customers.
The Missouri Public Service Commission approved a large-load tariff submitted by Evergy, which operates in Kansas and Missouri, and that was supported by most parties in the case.
Unlike in Kansas, where a large-user tariff was unanimously agreed to by all intervenors, including business, environmental groups and a data service coalition, two groups did not support the Missouri order.
Missouri Public Service Commission staff and the Missouri Office of Public Counsel, an organization that advocates for small business and residential customers, did not support the order.
In fact, the staff and OPC submitted a separate proposal that commission chairwoman Kayla Hahn said was too confusing and could cause large users to avoid locating in Missouri.
“Staff’s proposal requires upwards of 25 different charges that a large user could be subject to paying,” she said. “The evidence showed us the vast amount of charges and uncertainty make it unclear if a large user would be paying too much, too little or more likely if a large user would forgo locating in Missouri altogether as even a sophisticated user would be unable to predict what its ultimate bill responsibility would be.”
The tariff reflects broad stakeholder consensus and “contains strong safeguards to ensure that large new loads pay their fair share while enabling growth that benefits Missouri,” the commissioners said in the order.
Large-load users were defined in the order as those requiring 75 megawatts per month at peak times, a parallel to the Kansas order approved Nov. 6 by the Kansas Corporation Commission.
“I’m satisfied that this will result in the large-load customers bearing the financial responsibility for the costs that are incurred for infrastructure improvement, be they transmission or generation,” said commissioner John Mitchell. “I’m also satisfied that the agreement does establish reasonable protections both for the existing customers and for the large-load customers, and ensure that the large-load customers will pay their fair share.”
Evergy spokeswoman Gina Penzig said Missouri rates include similar protections to those put in place in Kansas for existing customers by ensuring that companies pay their fair share for access to the grid. The rate for these new large customers is higher than that paid by existing commercial and industrial customers.
“This premium rate helps pay for modernization and maintenance of the power grid that is shared by all our customers,” she said. “In both Kansas and Missouri the commissions have recognized the value of attracting large energy users and the importance of making sure existing customers don’t foot the bill.”
This story was originally published in the Kansas Reflector.
