The Missouri Public Service Commission recently approved a settlement agreement regarding Ameren’s proposal to expand their Montgomery County solar generating facility. Consumers Council played a pivotal role in ensuring that the needs of low-income communities are not forgotten as Ameren expands solar production. As part of the settlement, Ameren agreed to meet with Consumers Council, along with any other interested party, to discuss the potential creation of a future community solar pilot project, to be located in an urban or rural area within Missouri that is designated as disadvantaged, and that would leverage federal funding to provide savings on the electric bills of subscribing customers within that community solar pilot project area.

See EA-2024-0212: https://efis.psc.mo.gov/Case/Display/84159

Energy insecurity is an increasingly important social and public health concern.

As costs for residential heating, cooling and other household energy needs steadily increase, they account for a higher percentage of household budgets and represent emerging disparities between households that are low-income and those who are more affluent.

In Missouri, thousands of families have suffered utility disconnections. In September 2024, Ameren Missouri disconnected over 16,000 households. In October 2024, Ameren Missouri disconnected over 17,000 households. Over 233,000 Ameren MO households were behind in their bills with an average past due amount of $199.91.

Energy insecurity leads to adverse health and social consequences, such as poor health, hospitalizations, and food insecurity. For many, this requires making a choice between purchasing food or heating their home.

When families lose utility service, they are placed at higher risk of investigation by child protective agencies.

Moving may be an option, but can result in challenges regarding changing schools, social networking, and adult work productivity.

Socioeconomic status and race/ethnicity are closely linked to energy insecurity with African Americans across the economic spectrum experiencing energy insecurity at the highest rates.

For more information:

https://www.sciencedirect.com/science/article/pii/S0277953616304658

https://www.researchgate.net/publication/351440651_Surviving_a_Shut-Off_US_Households_at_Greatest_Risk_of_Utility_Disconnections_and_How_They_Cope

https://energyrights.info/content/living-without-power-health-impacts-utility-shutoffs-california

The Missouri Public Service Commission will hold local public hearings starting on October 28, 2024, to receive customer comment in the + 34% rate increase case filed by Missouri-American Water Company (MAWC). There will be in-person and virtual local public hearings conducted by the Public Service Commission.

A blog post recently released by the Energy and Policy Institute reveals that Missouri PSC Chair Kayla Hahn asked Governor Parson to deny a proposed rule because it required utilities to report disconnections at the zip code level.

As many Americans saw their energy bills rise substantially in the past year, investor-owned electric and gas utilities and the country’s largest publicly owned utility paid their CEOs over $647 million in 2023, an increase of 9 percent over 2022.

By Linda Truman, Member of Consumers Council

This past year, 2023, was the warmest year in a 174-year climate record, and 2024 is expected to bring record heat.

Nearly 25% of the US population are vulnerable. Approximately 1,220 US citizens die yearly from extreme heat. Our most vulnerable neighbors are seniors, children, low to moderate income populations, disabled and chronically ill persons, and outdoor workers. Urban heat islands bring increased risk to vulnerable populations by increasing high all-day temperatures and pollution, energy consumption, and utility bills. Heat events result in $1 billion in excess health care costs and could cost the US economy over $14.5 trillion over the next 50 years.

The energy burden is already disproportionately higher on low-income people. The percentage of gross household income they spend on energy is three times higher than it is for non-low income-Americans.  An analysis of zip-code-level disconnection data showed customers in non-white neighborhoods were four to five times more likely to have their power disconnected.

Here are strategies that can combat extreme heat and utility unaffordability:

• Robust, tiered discount rates of percentage of income payment plans (PIPPs), or both
• Summer moratorium protections
• Increase funding for the Low In-come Home Energy Assistance Program (LIHEAP) and weatherization programs
• Disconnection protections for vulnerable populations
• New credit and collection provisions that lock in more flexibility, les punitive practices
• Monthly reporting of disconnections, arrearages and other affordability metrics via zip code level data filing

For more information, see the report written by Karen Lusson at NCLC with support from and collaboration with the Center for Energy, Poverty, and Climate.

NCLC Article: Protecting Access to Essential Utility Service During Extreme Heat and Climate Change

Full PDF: Protecting Access to Essential Utility Service During Extreme Heat and Climate Change

A report by Strategen Consulting that shows from 2020 to 2023, residential customers of both Ameren and Spire have experienced rate increases that outpace both national inflation and Missouri wage growth.

Following on the heels of Ameren, on July 2, 2024, Missouri American Water Company (“MAWC”) requested a general rate increase of approximately +$166.6 million or +34.4% annually for water and sewer services. Consumers Council is continuing to review MAWC’s rate request and has intervened in this case.

On June 28, 2024, Ameren Missouri filed a request for approval of a +15% increase in electric utility rates designed to increase Ameren’s gross revenues by approximately +$446.2 million. Consumers Council has intervened in this case.