Holsman: Committee hears bill to help Prop C implementation

Disputes over wording have held up2008 renewable energy law

JEFFERSON CITY, Mo. - The House Special Committee on Renewable Energy on Tuesday held a hearing on legislation sponsored by State Rep. Jason Holsman that would fix flaws in a voter-approved law to expand and promote renewable energy in Missouri.

Proposition C, which 66 percent of Missouri voters approved in November 2008, requires that minimum percentages of electricity sold in Missouri by investor-owned utilities be derived from renewable sources such as solar, wind, biomass and hydropower. Differences over how certain provisions of the law should be interpreted, however, have kept the measure from being implemented.A series of electricity-generating windmills.

House Bill 613 sponsored by Holsman, D-Kansas City, would clarify that utility companies would only get credit for renewable energy generated and delivered to Missouri customers. Some companies have claimed the existing law allows energy created and sold in other states to count toward its Missouri obligations under Proposition C.

"If this fix doesn't pass, utility companies could have Missouri consumers pick up the tab for renewable energy generated and delivered to California customers," said Holsman, who chairs the House Renewable Energy Committee. "The intent of Missouri voters was to promote renewable energy in Missouri, not other states, and it is my goal to ensure that intent is followed."

The bill also would establish a hard 1 percent annual cap on costs that utilities can pass on to consumers. The change is expected to save ratepayers $1.8 billion from what the Missouri Public Service Commission estimates the existing wording of Proposition C would allow companies to pass on to their Missouri customers.

The committee will vote on the legislation next week.