NE Missouri News

Congressman Sam Graves of Missouri and Representative Tracey Mann of Kansas have introduced a legislative proposal aimed at ensuring stable energy rates and maintaining a reliable energy grid across several states served by the Southwestern Power Administration (SWPA). These states include Missouri, Arkansas, Louisiana, Kansas, Oklahoma, and Texas.

Highlighting the historical collaboration between Missouri's rural electric cooperatives and the SWPA, Congressman Graves stated, “But the way SWPA is set up, droughts and other disruptions can cause rate spikes that are passed on to co-ops and municipalities that have no choice but to increase electric rates on Missouri families.” He emphasized that the new legislation would establish a revolving fund to provide stable funding, which would help avoid rate spikes and lower costs for consumers.

Representative Mann echoed similar sentiments about the situation in Kansas, remarking that, “Under the current funding structure, SWPA has not had the flexibility to make necessary investments into their infrastructure.” Mann believes that a revolving fund would help maintain infrastructure and prevent the additional costs that Kansans incur due to natural disasters affecting power production.

The SWPA, operating under the Department of Energy, markets hydropower from federal dams to various utilities across the states mentioned. The proposed Southwestern Power Administration Fund Establishment Act would enable SWPA to manage its operations through a self-sustaining Treasury fund, aimed at preventing severe rate fluctuations during times of environmental adversity.

This legislative effort has garnered support from several associations. Caleb Jones of the Association of Missouri Electric Cooperatives expressed gratitude, stating that the bill "ensures we can keep providing affordable, reliable electric service to Missouri families for decades to come." Similarly, Steven Stodden of the Missouri Public Utilities Association described the act as a forward-thinking plan that "preserves Missouri’s legacy of affordable, renewable energy."

Brian Ackermann of the Southwestern Power Resources Association underscored the importance of cutting unnecessary red tape to maintain affordable energy rates, while Nicki Fuller, also from the Southwestern Power Resources Association, said the bill ensures grid reliability across a six-state region.

The National Rural Electric Cooperative Association (NRECA) also voiced support, emphasizing the role of the bill in allowing SWPA to better manage its infrastructure needs. The American Public Power Association hailed the bill as a significant improvement in managing power rates during extreme weather, describing it as a "win-win for the federal government and communities served by not-for-profit electric utilities."

The full text of the legislation is available for review.