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Missouri

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Select Economic and Energy Data Value State Rank
Real Gross Domestic Product, per capita $32,779 15th lowest
Unemployment 9.4% 23rd highest
Gasoline Price, per gallon $2.59 1st lowest
Electricity Price, per kWh 7.24¢ 11th lowest

Despite not having many energy resources, Missouri has some of the most affordable energy prices in the United States. Missouri has lower electricity prices, in large part, because over 80 percent of its electricity is generated from coal. Nuclear provides more than 10 percent of the state’s electricity.

Even though Missouri was the first state west of the Mississippi to commercially produce coal, the state’s coal production is now minimal.  Most of the coal used for Missouri’s electricity generation is delivered from Wyoming.

Regulatory Impediments to Affordable Energy

Although affordable energy is a vital component of a healthy economy, regulations frequently increase energy costs. Regulations imposed in the name of reducing carbon dioxide and greenhouse gas emissions are especially costly. Carbon dioxide is a natural byproduct of the combustion of all carbon-containing fuels, such as natural gas, petroleum, coal, wood, and other organic materials. Today, there is no cost-effective way to capture the carbon dioxide output of the combustion of these fuels, so any regulations that limit carbon dioxide emissions will either limit the use of natural gas, petroleum, and coal, or dramatically increase their prices.

Below are some facts about Missouri’s regulatory environment that are likely to affect the cost of energy or the cost of using energy. Missouri has thus far avoided many of the costly energy policies other states are implementing.

  • Missouri does not cap greenhouse gas emissions.
  • Missouri is not a member of a regional agreement to cap greenhouse gas emissions.
  • Missouri requires utilities to sell a certain percentage of electricity from renewable sources. The state’s renewable portfolio standard requires that investor-owned utilities provide 15 percent of retail electricity sales from renewable sources by 2021 and thereafter, of which 0.3 percent must be from solar. [i] Utilities may be excused from their obligation for events beyond their control or if the cost of compliance with the standard increases retail electricity rates by more than 1 percent.
  • Missouri requires gasoline to be mixed with renewable fuels. House Bills 1270 and 1027, passed in 2006, mandate that all non-premium gasoline must contain 10 percent ethanol.[ii] Also, Missouri requires that St. Louis and Kansas City metropolitan areas use reformulated gasoline blended with ethanol.[iii]
  • Missouri does not impose automobile fuel economy standards similar to California’s, which include attempts to regulate greenhouse gas emissions from new vehicles.
  • Missouri does not require new residential and commercial buildings to meet energy efficiency standards. State-owned and state-leased buildings, however, must meet a standard at least as stringent as the 2006 International Energy Conservation Code (IECC).[iv] The IECC, developed by the International Code Council, is a model code that mandates certain energy efficiency standards.
  • Missouri does not impose state-based appliance efficiency standards. Senate Bill 376, enacted in 2009, requires appliances purchased with state funds to be Energy Star certified.[v]
  • Missouri does not allow utilities to “decouple” revenue from the sale of electricity and natural gas. Some states decouple revenue from actual sales, allowing utilities to increase their revenue by selling less electricity and natural gas.

Data Sources: Real GDP per capita 2008: Bureau of Economic Analysis, News Release: GDP by State (June 2, 2009), http://www.bea.gov/newsreleases/regional/gdp_ state/gsp_newsrelease.htm; Unemployment: Bureau of Labor Statistics, Regional and State Employment and Unemployment–February 2010 (Mar. 10, 2010); Gasoline Prices: American Automobile Association, AAA Daily Fuel Gauge Report (Mar. 30, 2010); Electricity Prices: Energy Information Administration, Electric Power Monthly, Table 5.6.B., Average Retail Price of Electricity,  (March 15, 2010), http://www.eia.doe.gov/cneaf/electricity/epm/table5_6_b.html; Electricity Generation Data: Energy Information Administration, Electricity Generation 2009, http://www.eia.doe.gov/cneaf/electricity/epa/generation_state_mon.xls.

[i] Mo. Rev. Stat. § 393.1030 (2010), http://www.moga.mo.gov/statutes/chapters/chap393.htm.

[ii] H.B. 1270 & 1027 (Mo. 2006), http://www.house.mo.gov/content.aspx?info=/bills061/biltxt/truly/HB1270T.HTM.

[iii] Energy Information Administration, Missouri, Apr. 8, 2010, http://tonto.eia.doe.gov/state/state_energy_profiles.cfm?sid=MO.

[iv] Database of State Incentives for Renewables and Efficiency, Missouri Life-Cycle Analysis and Energy Efficiency in State Buildings, http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=MO09R&re=0&ee=1.

[v] S.B. 376 (Mo. 2009), http://www.senate.mo.gov/09info/pdf-bill/tat/SB376.pdf.

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