HB 1626: Missouri Nuclear Clean Power Act
Sponsor: Rep. Willard Haley
STRONGLY OPPOSE
Shifts risk to families & expands PSC power
HB 1626 (the “Missouri Nuclear Clean Power Act”) continues to weaken Missouri’s once strong ban on charging customers for construction work in progress (CWIP) by carving out a big new exception for new nuclear plants and extends a similar exception that already exists for new natural-gas plants. In plain terms, it lets investor-owned utilities start billing Missouri families while a new nuclear plant is still being built, years before it produces a single kilowatt of power.
What Does This Bill Do?
- Nuclear Construction Charges (CWIP): Allows utilities to include Construction Work in Progress (CWIP) in their rate base for new nuclear plants. This means customers begin paying for the plant while it is being built, rather than waiting until it is operational, shifting financing risk from investors to ratepayers.
- Extends Gas Plant Financing: Extends the existing exception for natural gas plants, allowing the Public Service Commission (PSC) to keep this pre-charge regime active potentially until 2046, instead of letting it expire in 2035.
- Expands Regulatory Discretion: Gives the unelected PSC broad power to decide how much construction cost goes into rates and grants them the authority to extend these financing regimes for another decade upon a showing of "good cause," without a new vote from the legislature.
Constitutional or Critical Context
While the bill claims to focus on "Nuclear Clean Power," it significantly alters the financial relationship between utilities and customers. By allowing utilities to collect "Construction Work in Progress" (CWIP), the bill undermines the traditional regulatory compact where investors bear the risk of construction and customers only pay for "used and useful" assets. Furthermore, the bill creates a potential "clear title" vulnerability (Mo. Const. Art. III §23) by significantly modifying natural gas regulations under a title that only mentions nuclear power.
Red Flags & Recommended Amendments
Forced Financing Risk for Families
Families become involuntary lenders to utility projects. If a project is delayed or over budget, rates rise immediately. If cancelled, refunds are limited to "imprudent" costs, meaning families may never be fully repaid for years of higher bills.
Unelected Power to Extend Taxes
The bill allows the PSC—not the legislature—to extend this special financing regime from 2036 to 2046 based on a vague "good cause" standard, removing accountability from elected representatives.
Act for Missouri Recommendation:
Act for Missouri recommends a Strongly Oppose stance. HB 1626 fundamentally changes who carries the risk for major projects—shifting it from investors to Missouri families. It grows government power in the hands of an unelected commission and blurs the line between fair ratemaking and forced financing. While nuclear energy has benefits, this financing method violates principles of limited government and economic freedom.