First Extraordinary Session 2017 – Missouri House of Representatives Newsroom

Despite Governor’s call, House postpones utility modernization debate to another day

The state House has worked to answer Governor Eric Greitens’ (R) call to an extraordinary session on one of the two issues he set before it, but not the other.

Representative Jay Barnes (photo; Tim Bommel, Missouri House Communications)

It sent to the Senate on Wednesday a bill that would let the Public Service Commission (PSC) consider lower rates for new facilities that use more than 50 megawatts of electricity per month. It was prompted by two companies – one looking to restart an aluminum smelter near Marston; the other saying it will build a new steel mill at New Madrid. Both are in Southeast Missouri where lawmakers agreed jobs are needed badly.

Earlier story: House uses special session to pass bill aiming to bring jobs to Bootheel

The House did not include language that would give utilities more leeway to set new rates ahead of new infrastructure investments. That was part of Greitens’ call, but the issue is considered controversial and lawmakers in the House thought including it would keep the rest of the legislation from passing in the Senate.

Some lawmakers, however, said the issue is one that needs to be discussed.

“I think our state needs to have a conversation about energy policy for the next 40 years and not just the next four months,” said Representative Jay Barnes (R-Jefferson City), who brought the infrastructure-related language to the floor in order to have legislators discuss it before he withdrew it.

Barnes said the language that was originally in House Bill 1 was too broad, and instead supports legislation that would allow the PSC to consider increasing rates ahead of improvements to power grids and other infrastructure in order to pay for those improvements.

“At least for one utility in this state there are four coal plants that are on average at least 50 years old. Some of those need retrofitting and there are those in American society who would want those closed down altogether,” said Barnes. “Half of the substations for the utility company that services my area are over 40 years old … much of the electrical infrastructure underground in St. Louis that supports our state’s biggest city is 80 to 100 years old. As a state we are living on the investments of our grandparents … there are tough decisions to be made about how to modernize that infrastructure.”

Critics like St. Louis Democrat Tracy McCreery say what Barnes is discussing would give a “monopoly utility” the chance to get “extra money.”

“That’s what grid modernization is. It’s the ability for them to get money ahead of time and faster in order to do things that I think they should be doing already,” said McCreery.

Representative Tracy McCreery (photo; Tim Bommel, Missouri House Communications)

Barnes said he hopes the legislature will revisit the discussion of grid modernization incentives. House Speaker Todd Richardson (R-Poplar Bluff) agrees.

“I think the State of Missouri needs to have a longer-term conversation about energy policy and what that needs to look like. The status quo with energy policy right now isn’t working particularly well,” said Richardson. “Our ratepayers in Missouri are seeing significant increases almost every 12 to 18 months.”

Richardson said the House in this week’s special session was focused on passing the other issue called for by the governor so those two companies would not pull out of plans to come to Missouri. Barnes noted grid modernization legislation in the past has been “stymied” in the Senate.

House uses special session to pass bill aiming to bring jobs to Bootheel

The Missouri House worked quickly this week to let the Public Service Commission (PSC) clear the way for some 500 or more jobs in Southeast Missouri.

Representative Don Rone (photo; Tim Bommel, Missouri House Communications)

The House has passed to the Senate a bill that would let the PSC consider lower utility rates for two companies – one that says it will reopen the Noranda aluminum smelter near Marston; the other saying it will to build a new steel mill at New Madrid, both in Southeast Missouri.

Both companies want lower utility rates that would allow those facilities to be profitable. House Bill 1’s main provision would allow the PSC to consider whether to grant those rates.

Its sponsor, Representative Don Rone (R-Portageville), spoke passionately numerous times to his colleagues about the need for jobs in his region and the need for this legislation.

“On behalf of the people from my district I want to thank everybody in this body on both sides of the aisle whether you voted for it or against it, that’s fine. The outcome was good for my people,” said Rone.

House Speaker Todd Richardson (R-Poplar Bluff) said it is poetic that one of the facilities will be in an industrial park that bears the name St. Jude.

“I cannot think of anything more appropriate than to have the patron saint of lost causes be the location for this extraordinary project,” said Richardson. “If you travel across rural Missouri there are people that believe industry is never coming back to rural Missouri … but the notion that we cannot bring industry and we cannot bring business back to rural Missouri is wrong, and we’re going to show it today.”

Similar language passed out of the House during the regular session 148-2, but did not pass out of the Senate. Governor Eric Greitens (R) called legislators back to Jefferson City to reconsider the issue, and it was met with less support.

Some Democrats, including Fred Wessels (D-St. Louis), said granting lower utility rates doesn’t make sense when the state has other incentives to help lure businesses to Missouri.

“This is a nutty way to do business when you have alternative sources,” said Wessels.

Representatives Judy Morgan (D-Kansas City) and Sarah Unsicker (D-St. Louis) were among Democrats who didn’t feel comfortable with the fact that the name of the company proposing the steel mill hasn’t been shared publicly.

“I was just so uncomfortable with the fact that there was no guarantee on the number of jobs, there was no guarantee on a clawback provision, there was no guarantee on a salary … I think I would’ve supported the bill if it had some of those items in it,” said Morgan.

“We’re letting this unknown company dictate the terms of the negotiation without holding their feet to the fire to say, ‘You need to do what you’re promising,” said Unsicker.

Representative Fred Wessels (photo; Tim Bommel, Missouri House Communications)

Some Democrats also contend that if the PSC grants a lower utility rate for those two companies other Ameren customers will have to pay more to make up the difference.

“My constituents, our constituents, don’t really care whether they’re writing a check to the IRS or the Missouri Department of Revenue or to Ameren, I mean it’s still money,” said Representative Tracy McCreery (D-St. Louis). “Should we be doing economic development on the backs of people who pay their electric bills, and is that the right way to make policy for this state?”

Rone said there’s no way to know for sure whether Ameren customers’ rates will increase.

“Everybody’s assuming – they don’t know. What crystal ball are they looking at?” asked Rone. “I’ve been working this since last January and I can’t tell you what the average rate is at that location.”

The special session was called by Greitens one week after Rone called attention to the issue in a passionate floor speech, in which he called several senators “heartless,” and “selfish,” for rejecting his proposal.

Rone’s bill goes to the Senate on the strength of a bipartisan 120-17 vote. It includes a clause that would make it effective immediately upon being signed by the governor.

Legislature called back for extraordinary session to consider Southeast Missouri jobs issue

State lawmakers will return to Jefferson City next week for a special legislative session. Governor Eric Greitens (R) is calling them back to address an economic development issue in Southeast Missouri.

Representative Don Rone (at microphone) (photo; Tim Bommel, Missouri House Communications)

The legislature did not pass in its session that ended last week language that backers say could allow one company to proceed with plans to reopen the Noranda aluminum smelter at Marston; and another company to build a new steel mill at New Madrid, both in Southeast Missouri.

Both companies hope for lower utility rates that would allow those facilities to be profitable. To consider lower rates the Public Service Commission (PSC) says it needs the legislature’s approval.

Representative Don Rone (R-Portageville) attached that language to several bills in the final days of the session, but it did not become law. He said people in that region are in desperate need of jobs, especially after Noranda closed last year eliminating nearly 900 jobs. He said these two projects could create more than 500 new jobs.

Greitens wants legislators to come back and focus on that one issue.

“I cannot thank the governor enough for the people of Southeast Missouri – all of Southeast Missouri,” said Rone. “I can’t tell you what it means to these people here to have hope, and the governor saw fit to give us hope by calling a special.”

The House voted for Rone’s language 148-2, and its support in that chamber is expected to remain high, but at least one senator who Rone said blocked it in that chamber – Senator Doug Libla (R-Poplar Bluff) – remains opposed to the proposal.

Rone said he believes the bill can get through both chambers and to Greitens.

“[Senator Libla] can keep his position. We’ve never asked – in the many conversations I’ve had with him and his people – we’ve never asked him to change his vote. We’ve always asked him just to allow it to come to the floor and let the people in the Senate vote,” said Rone. “All we’re wanting to do is let democracy work, let the 34 senators take vote their conscience, and see where it takes us.”

Rone said the entities behind the two facilities are expected to decide soon whether to give up on progressing with their plans for those two sites. He said if the legislature can quickly pass his bill he is confident those companies will postpone their decisions until they can meet with the PSC.

“I would think that [Governor Greitens] was well aware of the timeline and how critical it is,” said Rone.

The call for the special session comes one week after Rone called attention to the issue in a passionate floor speech in which he called out Libla and two other senators, saying they were, “heartless,” “selfish,” and “egotistical,” in rebuffing his proposal.

The House and Senate will begin the extraordinary session at 4 p.m. Monday.