By Joe Rinzel
Not very long ago, the Missouri Chamber of Commerce released an exhaustive report called “Missouri 2030,” a policy roadmap to “move the state forward” and ensure Missouri’s competitiveness in the future. One vitally important area that still needs considerable attention is the overall strategy on infrastructure development, particularly with regard to roads, bridges, and utility generation, and transmission. For Missouri to compete in the modern economy, our connectivity through traditional roadways and the information superhighway must be significantly upgraded.
The study acknowledges that one key part of that connectivity, our electric power grid, is aging and seriously deficient in meeting the needs of the future. It goes on to suggest that in order to protect Missouri’s current advantage as a low-cost energy and utility state, business and policy leaders need to develop a long-term plan to address future needs. By any standard, renewable energy is very much a part of any real plan to prepare for the future. Not much has been done in this space to date but legislators have another opportunity in front of them to “move the state forward.”
Senator Gary Romine (R-Farmington) has introduced The Missouri Energy Freedom Act, which would allow large electricity users to purchase renewable energy from third-party providers through long-term contracts and reduce the cost of doing business. This approach is already proving itself in many states and would create a more competitive business environment now and for the foreseeable future.
The legislation would allow companies to enter into power purchase agreements (PPAs) for renewable energy with non-utility energy service providers. PPAs are important because they allow users to procure energy without making major capital expenditures up front or taking on the risk associated with operating and maintaining a power generation system. In addition, powering our facilities with renewable energy allows users to: avoid power price fluctuations by locking in rates over a long period of time; reduce our greenhouse gas emissions profile; meet business strategies and consumer preferences; and save money that we can put back into our businesses and pass on to customers. For Missouri, allowing PPAs will create more jobs and opportunity for those who build, install, and maintain renewable projects, keep Missouri competitive with other states that allow companies access to renewable energy choices, and promote a clean and healthy environment.
There is no reason that we can’t pursue free markets and consumer choice and, at the same time, protect the investments of incumbent electric power suppliers. The future demands we do both. Traditional sources are a finite resource and will fall far short of our needs. Renewable energy from wind solar and other sources is the only way to meet the demand.
As it stands, the Missouri Energy Freedom Act has not been given a hearing. While other bills that support increasing utility rates faster and more frequently get debated, this pro-business policy has to date been sidelined.
The American people are looking for the business community to lead in many policy areas and American competitiveness is at the top of the list. But rightly, we have to balance the protections that our modern systems depend on while keeping the doors of innovation open. Policymakers need to “Show Me” – the business community, our citizens, and future generations – that they understand the difference.
Joe Rinzel is the Executive Director of the Employers for Renewable Energy, a coalition of like-minded businesses and job creators who support state policies that enable greater customer choice of renewable energy and strong competition among producers.
