MO passes major utility bill, heads to Governor’s desk

The El Dorado Sun

Missouri lawmakers have passed Senate Bill 4 (SB 4), a sweeping utility bill that significantly changes energy regulations across the state. The bill now heads to Gov. Mike Kehoe’s desk for his signature. If signed into law, the provisions will take effect Aug 28, 2025.

The bill, sponsored by Sen. Mike Cierpiot, R-Lee’s Summit, changes rules for solar panel taxation, smart meters, utility shutoffs, and power plant closures. Supporters argue the bill strengthens grid reliability and protects consumers, while critics warn it could lead to higher utility bills and weakened safety regulations.

Key Changes in SB 4

• Solar panel taxation – Solar systems installed before Aug 9, 2022, will be classified as tangible personal property for tax purposes. These systems will now be taxed at only 5% of their true value, potentially lowering costs for solar panel owners.

• Utility shutoff protections – The bill strengthens Missouri’s hot and cold weather rules, preventing utility companies from disconnecting electricity or gas during extreme weather. Utilities cannot cut service from June 1 to Sept. 30 if temperatures are forecasted above 95°F for the next three days. Similarly, from Nov. 1 to March 31, utilities cannot disconnect service if temperatures are expected to fall below 32°F for the next three days.

• Smart meter opt-out option—Beginning July 1, 2026, residential customers may opt out of using smart meters. However, they must pay a $125 one-time fee to replace the meter and a $15 monthly fee to continue using a traditional meter.

• Power plant closures – Before shutting down an existing power plant, electric companies must prove they have an equal or greater amount of reliable replacement power available to avoid grid instability.

• Rate changes for large users—Utility companies serving more than 250,000 customers must submit new rate plans to ensure large commercial users pay their fair share.

• Gas rate discounts for large businesses – Businesses that use high amounts of natural gas may qualify for a 25% rate discount for up to four years, an effort to encourage business growth.

Impact on rural areas

While SB 4 primarily affects investor-owned utilities, such as Ameren and Evergy, its effects on rural Missouri remain a topic of concern. Rural electric cooperatives (co-ops) are largely unaffected, except for potential tax changes related to solar energy. However, the bill’s broader changes to utility rate structures could have unintended consequences for rural communities.

One major concern is the potential for higher utility rates. The bill aligns Missouri’s penalties for natural gas safety violations with federal standards, which could increase compliance costs for utility companies. Critics worry these added expenses may be passed on to customers, leading to higher bills—something that could be particularly burdensome for rural residents, where energy debt is already a significant issue.

Additionally, the bill permits water and gas companies to set customer rates based on projected future costs rather than actual past expenses. This shift could result in inflated rates, disproportionately affecting lower-income households in rural areas.

Some lawmakers and advocacy groups argue that SB 4’s focus on large-scale utilities and industrial energy users fails to address the unique challenges faced by rural communities, where access to affordable energy is already a pressing issue.

How Did Local Representatives Vote?

Cedar County’s state representatives took opposite positions on SB 4:

• Rep. Dane Diehl, R-District 125 – Voted Yes

• Rep. Ann Kelley, R-District 127 – Voted No

While Diehl has not publicly commented on his vote, his support suggests he views the bill as beneficial for business investment and infrastructure stability. Kelley’s opposition may reflect concerns about the potential cost increases for consumers or the impact on specific local utility providers, such as Liberty Utilities, which serves portions of southwest Missouri.

The Cedar County Republican Women’s Club has invited both representatives to speak about their votes. The meeting dates will be announced later.

What’s Next?

Gov. Mike Kehoe must now decide whether to sign the bill into law. If approved, it will take effect on Aug 28, 2025.