A new legislative proposal in Missouri could significantly alter the timeline for fossil fuel plant retirements by tying closures to strict reliability standards. Senate Bill 6 (SB6) sets a precedent for how states might balance decarbonization goals with the increasing pressure to maintain a stable electric grid.
The bill requires electric utilities to certify that any generation facility of 100 MW or more cannot be closed unless the grid has already received equivalent or greater accredited capacity. This definition, drawn from the standards of regional transmission organizations (RTOs) like MISO or SPP, prioritizes firm and dispatchable power sources—such as natural gas, nuclear, or energy storage—over intermittent renewables unless those renewables are paired with proven reliability mechanisms.
The requirement would take effect starting January 1, 2026.
“This could become a blueprint for other states looking to maintain reliability while managing the energy transition,” said an energy attorney familiar with the bill. “But it may also slow the pace of decarbonization in the name of caution.”
While the bill does not explicitly favor any energy source, its structure may disadvantage wind and solar unless paired with storage or demand-side flexibility. This is especially notable as Missouri utilities have pledged to increase renewable adoption through their Integrated Resource Plans.
SB6 also modifies the state’s Renewable Energy Standard (RES), allowing large customers to opt out of utility-provided renewable procurement if they acquire their own qualifying clean energy. This paves the way for more power purchase agreements (PPAs) and corporate-led sustainability procurement, aligning with national trends.
The bill mandates that a quarter of a utility’s annual capital expenditures (excluding generation and storage) be allocated to grid modernization projects, such as digital infrastructure, automation, and system resilience. Smart meters are capped at 6% of these investments annually, a sign of regulatory caution over data privacy and consumer cost.
In a nod to investor pressure and cost mitigation, SB6 also allows securitization—a financial tool that enables utilities to issue low-interest bonds to recover the cost of early plant closures, extreme weather response, and other “extraordinary costs.” This approach spreads the burden across time and customers, with oversight from the Missouri Public Service Commission.
For large industrial and commercial customers, SB6 offers greater autonomy and transparency in meeting sustainability targets. For utilities, it reinforces a capital-intensive pathway with regulatory support for long-term planning and debt recovery.
However, environmental advocates warn that the reliability-first approach could lock in fossil fuel assets longer than necessary and raise questions about the role of distributed generation. While the bill aims to protect ratepayers from price shocks, securitization carries long-term repayment risks if not closely monitored.
