Once these plants are separated from the regulated utility, the state would lose its authority to ensure that sufficient generation supplies exist to provide reliable service to Missouri customers. The state would also lose its authority to determine the appropriate level of power supply costs that should be included in Missouri utility rates. Missouri's current system of regulation ensures reliable power supplies for Missouri customers. Hogerty said her biggest fear was that Missouri would lose control over the price and reliability of electric generation. The bills would give away Missouri's authority to assure that its consumers have a reliable power supply at stable and reasonable prices.
Electricity is vital to the state s economy and to the basic needs of Missouri customers.
She noted that California also allowed its utilities to separate their electric generation assets from the regulated utility and also transferred jurisdiction over the reliability and the wholesale prices of its generation to the federal government. The proposed Missouri experiment, like the California plan, is a move to a type of deregulation that has never been tried before. With passage of these bills, the benefits that Missourians now receive from that low cost generation will be lost forever. In Missouri, three large base-load plants are nearing completion on the western side of the state and another 1600 MW of new generation is planned for the eastern side. Current Missouri law requires electric utilities to provide adequate generation supplies.