I was in Jefferson City for a few days. Was able to meet with the Governor's office, SEMA director and local officials. The Governor has signed the FEMA application and sent it on the feds.
The members of the Missouri House of Representatives came together Wednesday to approve a piece of legislation meant to bring hundreds of good-paying jobs to the south east part of the state. As part of an extraordinary session called by Governor Greitens, lawmakers met to discuss the merits of a bill that would allow two companies interested in setting up operation in Missouri to negotiate a lower electricity rate.
The legislation is necessary to bring one company with plans to open a steel mill in New Madrid, and a second company that wants to reopen an aluminum smelter formerly operated by Noranda. When the smelter closed last year it caused the area to lose 900 jobs. If Missouri can entice the two interested companies to move forward with their projects, they would create as many as 400 new jobs at the re-opened smelter, and at least 95 jobs at the steel mill.
The legislation approved by the House would authorize the Missouri Public Service Commission to approve a special, lower rate for a longer contract of service for companies like the smelter and steel mill that use tremendous amounts of electricity. The PSC already has the authority to negotiate special rates for companies currently operating in Missouri, but supporters say the legislative change is necessary to grant the commission the authority to negotiate rates for new companies interested in operating in the state.
The bill approved by the House would include not only the two proposed projects, but also any new facility that would use more than 50 megawatts of electricity per month and that can show a true need for the special rate. The final bill also includes consumer protections to ensure the PSC keeps the cost to other ratepayers in mind with any special rate it approves. With this provision, lawmakers hope to keep costs from being shifted to other customers.
The special utility rate is important for Missouri to be able to compete with other states that can offer cheaper rates to attract businesses that consume large amounts of electricity. The lower rates are vital for
a smelting operation like the one under consideration. The now-closed Noranda smelter consumed as much electricity as the city of Springfield. The new smelter would use as much as 190 megawatts each month, while the proposed steel mill would use between 50 and 60 megawatts of electricity per month.
The legislation approved by the House includes an emergency clause that would allow it to go into effect as soon as it is approved by both chambers and signed into law by the governor. Time is of the essence because the company that wants to build the steel mill hopes to decide on a location in June. Supporters of the bill say it will position Missouri as the company's top option.
The bill now moves to the Senate for consideration. If the Senate approves the bill as it was passed by the House, it will then go to the governor. If the Senate makes changes to the legislation, the House will then have to accept those changes, or head to a conference committee where negotiators can work toward a compromise. (Note: The legislation passed the Senate Friday and will be signed by the governor.)
As always, it is an honor to serve the good folks of the 153rd District.