Missouri is doing something most states have failed to do. While other states scramble to react to the surge in data center demand, Missouri is constructing regulatory guardrails to ensure these massive power users pay their fair share. That framework is why I support the new large load rates. If Missouri’s legislative and executive branches are going to court data centers in the name of economic development, these new rates are the only logical step to protect our families and small businesses.
The energy needs are unprecedented. Many data centers will have the electricity needs of a small town. Meeting that demand requires new generation, new transmission, and new infrastructure. In too many states, the cost of those upgrades quietly gets pushed onto ordinary ratepayers. Missouri chose a better path. The Missouri Public Service Commission will require companies creating the demand to cover the direct costs of serving that demand. The large load rates enforce that principle. They ensure that as these facilities expand, they are the ones paying for the infrastructure needed to support them.
Without a dedicated rate for large industrial users, utilities would have no option but to spread the cost across all customers. That is unfair to households already stressed by rising bills and to small businesses running on tight margins. The large load rate is a fairness tool. Governor Kehoe and the Legislature are telling data centers they are welcome here, and the large load rates ensure they will not be subsidized by Missourians who are simply trying to keep the lights on.
Supporting these rates does not mean overlooking the utilities shortcomings. Renew Missouri has challenged the state’s utilities often and will again. My support comes from a clear recognition of what is happening across the country. Data centers are not a temporary spike. They are the future of digital infrastructure. States that fail to plan will end up paying more later through rushed builds, emergency rate cases, and strained grids. Missouri is now ahead of that curve.
The new large load rates also strengthen our clean energy goals. Data centers made clear they want renewable power and, in many cases, are willing to help pay for it. We fought for optional renewable programs to be included in the new rates. When data centers shoulder the costs of new wind, solar, or battery storage projects or the transmission lines needed to deliver that energy, the entire system benefits. Grid infrastructure is upgraded and becomes more reliable. More renewable and dispatchable projects become possible and everyday customers avoid rate hikes tied to infrastructure being built for someone else.
Missouri’s large load rates are pro-consumer and pro-small business. They keep us competitive without sacrificing fairness. Other states are scrambling to adjust their rules because they waited too long. Missouri acted early. We built a framework that puts the financial burden where it belongs.
Renew Missouri has continuously advocated that good policy protects people first. These rates – one approved and one pending- do exactly that. It is smart planning. It is good for ratepayers. It shows that large demand- from data centers or industry – can be serviced here without compromising our hardworking families, small businesses, or environmental responsibility. That is worth celebrating.
James Owen is the executive director of Renew Missouri and a clean energy advocate. He is an attorney, a longtime public advocate, and a frequent commentator on Missouri’s utility and regulatory issues.
