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Energy policy in Missouri

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Energy policy in Missouri
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Quick Facts
Energy Department Missouri Department of Economic Development[1]
State Population 6 million
Per Capita Income $39,049
Energy Consumption
Total Energy Consumption 1,878 trillion BTU[2][3]
Per Capita Energy Consumption 313 million BTU
Energy Spending
Total Energy Spending $26,750 million
Per Capita Energy Spending $4,452
Price of Residential Natural Gas $9.65 per thousand cubic foot
Price of Electricity 10.86 cents per kWh
See also
Energy on the ballot
Statewide fracking on the ballot
Local fracking on the ballot
Policypedia
Policypedia Energy logo.jpg
Energy Policy Project
Energy policy in the United States
Energy use in the United States
Energy terms and definitions
Energy policy in Missouri
Fracking in Missouri

Energy policy in Missouri depends on geography, natural energy resources, how electricity is generated, how much energy consumers use, politics and the influence of groups such as environmental and industry organizations. Decisions by policymakers, such as state and local governments, utilities and regulatory agencies, affect all citizens economically and environmentally, and are generally geared toward providing reliable, affordable energy. The cost of energy affects not only home heating and electricity bills, and thus disposable income, but also economic growth, including jobs, investment and the cost of doing business in the state.

How energy is produced and consumed also has an impact on the environment and pollution. Energy policy in Missouri, and many other states, focuses on decreasing emissions and dependence on fossil fuels by increasing energy efficiency and the use of renewable energy. As the infrastructure for producing and delivering renewable energy sources is not as advanced as it is for energy generation from traditional sources, these policies often require subsidies to make the produced energy affordable, and their effects are difficult to measure.

Energy policy involves tradeoffs between providing an affordable, consistent energy supply on the one hand, and limiting pollution and protecting the environment, on the other. How states attempt to balance these two differs between states, and often boils down to costs to consumers versus costs to the environment. This article provides general energy information about the state as the context within which energy policy is made, as well as information about major legislation and public and private groups that play a role in setting energy policy in the state.

See also: Energy policy in the United States for more information on energy policy.
See also: Fracking in Missouri

Energy overview

State facts

Below are quick facts about Missouri's energy climate.

Missouri

In Missouri

  • many households outside of urban areas receive most of their electricity from municipal utilities and electric cooperatives.
  • almost 83 percent of the electricity generated comes from coal.
  • natural gas is the main source of energy used in home heating.
  • statewide use of oxygenated motor gasoline is mandated.
  • transportation is the largest energy-consuming sector in the state.[4]

Available energy resources

Missouri has few traditional energy resources in the form of oil, coal and natural gas. This lack of traditional energy resources means that Missouri easily imports a large majority of the coal, natural gas and petroleum consumed in the state. Because Missouri is geographically centered in the lower 48 states, it is a natural transportation hub for the United States, including the transportation of energy resources. It ships resources by rail, truck and river.[4]

Missouri has renewable energy resources that contributed about three percent of the energy for electricity in 2011 according to the U.S. Energy Information Administration (EIA). Hydroelectric energy and wind energy make up most of the state's power generated from renewables. Missouri's wind potential ranks 14th in the United States. Both hydroelectric and wind power have not reached their full potential and could provide significant amounts of energy to Missouri. Small amounts of municipal solid waste, landfill gas and other biomass add to the net electricity generation. The state has substantial biomass resources with 14 million acres of forest. There are six ethanol production facilities which convert corn into ethanol. There are also nine biodiesel plants.[4]

Consumption and prices

Energy consumption in Missouri
MO energy consumption chart.png

Legend[5]
     Transportation       Residential     Industrial       Commercial
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As shown on the pie chart to the right, in 2011, 30 percent of Missouri's energy use was for transportation, almost 29 percent for residential, 22 percent for commercial and the rest was used in the industrial sector. Most of the energy used in the state is in the form of coal, followed by petroleum and natural gas.[4]

Gasoline, used in transportation, accounts for most of the petroleum consumed in the state. Generally the price of gasoline in the state tracks slightly below the national average.[6][7] According to the EIA's February 2014 report, the federal excise tax is 18.40 cents per gallon of gasoline and 24.40 cents per gallon of diesel fuel. In addition to that, Missouri collects a total tax of 17.3 cents on every gallon of gasoline and gasohol diesel fuel, which ranks it at the 45th highest in the United States.[8][9]

Comparisons tables

The table below compares Missouri's consumption and spending for energy, as well as prices for gas and electricity and carbon emissions to those of Illinois, which has similar resources and consumption needs because of climate and geography. Also given are the U.S. averages and the state rankings. All rankings are from highest to lowest, so, for example:

  • Missouri's rank of 14th in carbon emissions means that carbon emissions are lower in Missouri than in Illinois, which has a ranking of sixth.
  • Likewise, per capita energy spending in Missouri is close to the national average and different than Illinois, which at 40th, ranks 14 places behind Missouri ranking of 26th in per capita spending.
  • These two states are somewhat similarly placed in the mid to high rank on per capita consumption and electricity prices.

Per capita energy consumption in Missouri (at 24th) is similar to Illinois (at 27th), but per capita spending in Missouri is different since it ranks 26th to Illinois's ranking of 40th. This is somewhat surprising because electricity prices are low in both states but gas prices are very different in Missouri which was ranked at 14th highest price and Illinois 46th.[10][11]

Consumption and Expenditures Comparisons Summary
Type MissouriIllinoisU.S. Figures
FigureU.S. Rank*FigureU.S. Rank*Totals
Population6.0 million1812.9 million5313.9 million
Per Capita Income Average$39,04932$44,81517$42,693
Total Consumption1,878 trillion BTU193,978 trillion BTU597,301 quadrillion BTU
Per Capita Energy Consumption313 million BTU24309 million BTU27312 million BTU
Total Spending on Energy$26,750 million18$50,925 million7$1,394,088 million
Per Capita Spending on Energy$4,45226$3,96040$4,474
Price of Residential Natural Gas, dollar per thousand cubic feet$9.65147.6446$12.48
Price of Electricity, cents per kWh10.864310.213712.31
Total Carbon Dioxide Emissions, million metric tons (2010)135.714230.465,631
*Rank is from highest to lowest.

The low price of electricity in both states may result from the fact that they consume 825 trillion to 1,050 trillion BTU of coal energy annually, which is less than neighboring states, like Indiana, that consumes more than 1,300 BTU annually. Missouri has comparatively lower electricity costs through avoiding policies like capping greenhouse gas emissions, imposing automobile fuel economy standards, energy efficient building codes and appliance efficiency standards among other requirements imposed by other states.[12][13][14][15]

See also: State Energy Rankings to compare all 50 states
Consumption of energy for heating homes in Missouri
Source Missouri 2011 U.S. average 2011
Natural gas 52.2% 49.5%
Fuel oil 0.3% 6.5%
Electricity 33.4% 35.4%
Liquid Petroleum Gases (LPG) 9.7% 5%
Other/none 4.6% 3.6%


Production and transmission

Missouri produced 200.5 trillion BTU of energy in 2011. Of that 49 percent came from nuclear and 18 percent came from biofuels. Crude oil and coal together, make up just over five percent, and the remaining 28 percent came from what the U.S. Energy Information Administration classifies as 'other,' which is "assumed to equal consumption of all renewable energies except biofuels."[16]

Energy production by type in Missouri, 2011
Type Amount Generated
(trillion BTU)
% of State % of USA
Crude oil 0.7 0.35% 0.01%
Coal 10.1 5.04% 0.05%
Nuclear 98.1 48.93% 1.19%
Biofuels 36.2 18.05% 1.89%
Other 55.4 27.63% 0.78%

Electricity consumed in Missouri comes primarily from coal, which supplied almost 82 percent of net electricity production in 2011. Most of the coal used in electricity generation is shipped into Missouri by rail from Wyoming and small amounts from Indiana, Illinois and Colorado by rail, truck and river barges.[17]


Where electricity comes from in Missouri[18]
Type Amount generated (MWh) % of state** % of U.S.**
Petroleum-fired 6 0.08% 0%
Natural gas-fired 182 2.5% 0%
Coal-fired 6,022 82.8% 0%
Nuclear 892 12.26% 0%
Hydroelectric 41 0.56% 0%
Other renewables 130 1.79% 0%
Total net electricity generation 7,273 100% 0%
**Note: Because the U.S. Energy Information Administration (EIA) does not include all of a state's energy production in these figures, the EIA totals do not equal 100 percent. Instead, we have generated our own percentages.

Nuclear power provides one-tenth of electricity and is produced at Callaway (Union electric Co.) nuclear plant, which was built in 1984. The energy generated can sustain an average of 780,000 homes annually.[19]

There are no significant natural gas reserves or natural gas production in Missouri. Instead, natural gas is supplied by several interstate pipelines and comes mainly from Kansas, Arkansas, Nebraska and Oklahoma. The interstate pipeline companies that move the gas from the production area to local utilities and through to other states include: ANR Pipeline Co., Arkansas Western LLC, Centerpoint Energy Gas Transmission Co., Missouri Gas Co., Mississippi River Transmission Corp., Missouri Interstate Gas Co., Missouri Pipeline Co., Missouri Public Service Co., Natural Gas Pipeline Company of America, Panhandle Eastern Pipeline Co., Rockies Express Pipeline, Southern Star Central Gas Pipeline Co. and Texas Eastern Transmission Corp.[20]

In the Missouri Public Utility Alliance there are currently 67 municipal electric utilities and 11 gas commission members. The Missouri Joint Municipal Electric Utility Commission (MJMEUC) authorized by the state law to run as an electric utility. The MJMEUC is legally able to enter into contracts for power supply, transmission service and other services related to electric utility. The Municipal Gas Commission of Missouri is in partnership with Illinois and Kansas. Together the three states purchase bulk gas for resale to cities that are members of the alliance.[21]

Most of the coal used in electricity generation is shipped into Missouri by rail from Wyoming. The electric transmission system in Missouri is primarily supplied by two utilities: Midcontinent Independent System Operator, Inc. and the Southwest Power Pool, Inc.[22]

Energy policy

Policy Issues

The lower price of electricity in Missouri may result from the fact that the state uses relatively less coal compared to other states. In addition, the resource has not become expensive because the state does not yet have strict regulations on carbon emissions.[4]

See also: Fracking in Missouri

Energy policy is made, executed and influenced by many organizations, both public and private, and is codified in the laws and regulations of the state. Each state’s energy policy involves tradeoffs in which energy production and prices are weighed against environmental concerns and efficiency. Missouri has been relatively slow regarding energy efficiency and renewable energy use. In 2012, the state enacted the Missouri Energy Efficiency Investment Act (MEEIA) that required investor-owned utilities and electric cooperatives to use all cost-effective energy efficiency opportunities. The state's largest utility was required to complete a three-year energy efficiency program plan by 2013 as required in MEEIA. The program plan lays out guidelines that review the progress of the utilities and cooperatives in their goal of increasing cost-effective demand-side savings.[23] Missouri ranked 43rd on the Energy Efficiency Scorecard produced by the American Council for an Energy-Efficient Economy.[24][25] There are differing estimates about the economic impact of these mandates in terms of costs that may affect prices and jobs, as well as the impact on the environment and pollution. Thus, for example, there are many new studies of what is called the "rebound effect" which refers to the fact that "some of the theoretically estimated gains in energy efficiency will be eroded as consumers consume additional goods and services."[26][27]

Major legislation

  • The Missouri Energy Efficiency Investment Act (MEEIA), passed in 2009, changed the role of investor-owned electric utilities in the state by mandating that they must use all cost-effective energy efficiency opportunities available. At the beginning of 2012, one of Missouri's largest utilities started a full MEEIA program and began reporting on an annual three-year program plan. All other utilities within Missouri were required to apply and to report on their progress as of 2013. Missouri has found MEEIA to have notable changes compared to their limited energy efficiency programs in the past. The Missouri Energy Efficiency Investment Act provides full step-by-step program plans for a variety of different utilities to help them increase energy efficiency.[28]
  • Missouri Statutes 414.365 is a biodiesel requirement that mandates no less than 75 percent of Missouri Department of Transportation (MoDOT) vehicles and heavy equipment that runs off of diesel fuel be supplied with biodiesel blends of at least 20 percent (B20), if it is commercially available. Biodiesel fuel that is blended is considered commercially available if the cost of conventional diesel fuel is no more than .25 cents per gallon different. The Biodiesel Fuel Revolving Fund may supply funding for the incremental cost of the blended biodiesel fuel.[29]
  • Missouri S.B. 54 (2007) requires net metering to customers of all electric utilities, including investor-owned, electric cooperatives and municipal utilities. Qualified systems can be no larger than 100 kilowatts (kW) in wind energy, hydroelectric energy, solar-thermal energy, fuel cells using hydrogen, photovoltaics (PV) and any other source certified by the Missouri Department of Natural Resources. The main intention of the system must be to offset a portion of the customer's personal electricity requirements.[30]
  • The Property Assessed Clean Energy Act (PACE), passed in 2010, provides property owners funds to pay for energy improvement projects. Clean Energy Development Boards are created to establish and permit the development of PACE to underwrite renewable energy improvements or energy efficiency improvements. The money borrowed is usually repaid through special analysis on the property over a specified period of years. Some local governments have received Missouri authorization to develop these programs, but not all local jurisdictions offer PACE financing.[31]
  • The Renewable Electricity Standard requires that 2 percent of Missouri's renewable electricity is derived from solar energy. In relative terms, that covers about 2,000 homes worth of annual solar electricity generated power by 2021. By requiring utilities to fund a $2 minimum incentive per watt for customer-based installations, the energy costs are expected to be more affordable for customers. The net metering law in Missouri requires utility companies to buy the power generated by small scale renewable electricity generators up to the amount used by the customer.[32]
Policypedia
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State energy policy

State fracking policy

Energy policy terms

Fracking in the U.S.

Energy use in the U.S.

Energy policy in the U.S.


See also
Local fracking on the ballot

Statewide fracking on the ballot

Ballot measures

Below is a list of energy related ballot measures across Missouri that may or may not have been on the ballot. These ballot measures cover issues from fracking bans, to utilities and related tax questions.

Government agencies and committees

  • The Missouri Public Service Commission (PSC) is an independent regulatory agency that has been regulating Missouri public utilities since 1913, including those that are municipally-owned. The types of utilities that are regulated include electric, natural gas, steam, water, telephone and sewer utilities. Most of these must obtain PSC approval before they set new rates; issue stocks or bonds; or undertake major construction projects, such as water wells, power plants or transmission lines. The PSC is composed of five commissioners who decide the cases brought to the PSC for changes in utility operations, rates and for construction projects. Commissioners are appointed by the Governor and confirmed by the state Senate for staggered, six-year terms. The commissioners' office under the direction of a chairperson who is appointed by the governor for a two-year term, has oversight of all PSC staff related activities.[33][34]
  • The Missouri Division of Energy (MDE) is under the Missouri Department of Economic Development. The MDE assists, educates and encourages Missouri's communities and neighborhoods to use efficient and diverse energy resources. The MDE hopes to move the state toward a healthier environment, with higher levels of energy independence and security. The division cooperates with some state utilities and the Midwest Energy Efficiency Alliance (MEEA). Building Operator Certification (BOC) training is also provided.[35]

Major organizations

  • Renew Missouri is a non-profit that was organized in 2006. The group was developed to advance policy in energy efficiency and renewable energy in Missouri. Their mission is to dramatically transform the state into a leader of both renewable and efficient energy by 2016. Renew Missouri's plan for advancing policy is to join stakeholders and communities and provide encouraging dialogue on energy issues.[37][38]
  • Missouri Energy Initiative (MEI) challenges Missouri to collaborate on critical energy issues and increase the use of clean, reliable, abundant and affordable energy. Their solution to Missouri's energy problems is to "create a unique and one-of-a-kind approach to energy that will move this state beyond one-on-one conversation on energy issues into an environment of effective collaboration." This non-profit association aims to enhance and improve energy-related events in Missouri. Their target audiences are the general public, higher education institutions, private entities, other non-profit organization and other interest parties.[39]
  • Missouri Public Utility Alliance is a not-for-profit organization devoted to service. They represent municipally-owned natural gas, electric, water, wastewater and broadband utilities. They collaborate for the sake of bringing the most benefits to their customers. Alliance members include: The Missouri Association of Municipal Utilities, the Missouri Joint Municipal Electric Utility Commission and the Municipal Gas Commission of Missouri.[40]
  • Energy Management is the campus facility department in the University of Missouri. They aim to provide cost-effective and reliable energy services all over the University of Missouri campus. Specific information is provided through their website for the university and the community on energy efficiency, renewable energy and utility operation. What's more, they support the University's mission of research, teaching, outreach and economic growth. They provide utility services for three hospitals, multiple research facilities and laboratories, a research reactor and other university facilities, academic building and administrative buildings.[41]

In the news

This section displays the most recent stories in a Google news search for the term "Missouri+Energy+Policy"

All stories may not be relevant to this page due to the nature of the search engine.

Missouri Energy News Feed

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See also

External links

References

  1. National Association of State Energy Officials, "Missouri," accessed March 9, 2014
  2. These figures come from the U.S. Energy Information Administration's State Profiles and Energy Estimates, Missouri Overview. Statistics for population and per capita income are for the year 2012; consumption and spending estimates are for 2011; and prices are for October 2013. Updated pricing information is available on the state's EIA profile. Prices will be updated on this page biannually.
  3. U.S. Energy Information Administration, "Missouri Overview," accessed March 6, 2014
  4. 4.0 4.1 4.2 4.3 4.4 4.5 U.S. Energy Information Administration, "Missouri Profile Overview," accessed March 6, 2014
  5. This chart depicts the state's energy consumption as reported by the EIA for 2011. Click the image to enlarge.
  6. Gas Buddy, "Historical Gas Charts," accessed March 6, 2014
  7. To compare current gasoline prices in Missouri to the U.S average, go to GasBuddy.com
  8. U.S. Energy Information Administration, "Petroleum Marketing Monthly," February 2014, accessed February 14, 2014
  9. The Tax Foundation, "State Gasoline Tax Rates, 2009-2013," March 21, 2013
  10. U.S. Energy Information Administration, "Missouri Profile Overview," accessed March 7, 2014
  11. U.S. Energy Information Administration, "Illinois Profile Overview," accessed March 7, 2014
  12. The Institute for Energy Research, "The Status of Renewable Electricity Mandates in the States," accessed March 23, 2014
  13. The Institute for Energy Research Study, The Status of Renewable Electricity Mandates in the States, found that in 2010 electricity prices in states with RPS were an average of 38 percent higher than in states without a RPS.
  14. Off the Grid News, "Coal states fight back against strict EPA power plant regulations," accessed March 11, 2014
  15. Institute for Energy Research, "Missouri," accessed March 17, 2014
  16. U.S. Energy Information Administration, "State Energy Data System, Production," accessed February 18, 2014
  17. U.S. Energy Information Administration, "Missouri State Profile Overview," accessed March 7, 2014
  18. These figures come from the EIA State Profiles and Energy Estimates U.S. Energy Information Administration, "Missouri Overview," accessed March 6, 2014
  19. Ameren Missouri, "Ameren Missouri's Callaway Energy Center", accessed March 7, 2014
  20. U.S. Energy Information Administration, "Missouri State Profile Overview," accessed March 7, 2014
  21. Missouri Public Utility Alliance, "Home," accessed March 7, 2014
  22. Public Service Commission, "PSC Opens Docket Regarding MISO/SPP Seam In Missouri," December 2, 2013
  23. Midwest Energy Efficiency Alliance, "Energy Efficiency Policies and Practices in Missouri," accessed March 17, 2014
  24. For a full explanation of how the ACEEE calculates this ranking see the executive summary of their report here [1]
  25. American Council for an Energy-Efficient Economy, "State Energy Efficiency Policy Database," accessed February 27, 2014
  26. International Risk Governance Council, "The Rebound Effect: Implications of Consumer Behavior for Robust Energy Policies," accessed March 3, 2014
  27. Scientific American, "How Bad Is the Rebound from Energy Efficiency Efforts?," May 21, 2013, accessed March 3, 2014
  28. American Council for an Energy-Efficient Economy, "Missouri Utility Policy," accessed March 7, 2014
  29. U.S. Department of Energy, "Biodiesel Use Requirement," accessed March, 7 2014
  30. Database of State Incentives for Renewables & Efficiency, "Net Metering," accessed March 12, 2014
  31. Database of State Incentives for Renewables & Efficiency, "Local Option - Clean Energy Development Boards," July 12, 2013
  32. Natural Resources Defense Council, "Solar Energy," accessed March 7, 2014
  33. Missouri Public Service Commission, "Quick Guide to the PSC," accessed March 7, 2014
  34. Missouri Public Service Commission, "About the PSC," accessed March 7, 2014
  35. National Association of State Energy Officials, "Missouri," accessed March 7, 2014
  36. Missouri Department of Natural Resources, "Divisions and Programs", accessed June 3, 2014
  37. Renew Missouri, "About Renew Missouri," accessed March 7, 2014
  38. Renew Missouri, "About Renew Missouri," accessed March 7, 2014
  39. Missouri Energy Initiative, "About MEI," accessed March 7, 2014
  40. Missouri Public Utility Alliance, "Home," accessed March 7, 2014
  41. University of Missouri, "Energy Management," accessed March 7, 2014