Several communities affected by a steep increase in electric rates plan to hire a Columbia legal firm that specializes in utility issues. The move comes amid a significant rate increase from wholesale supplier Sho-Me Power Corp. of Marshfield, which says it is adopting a new rate structure.
Members of the Houston City Council authorized contributing to a multi-community effort that includes hiring Stewart & Keevil, a Boone County legal firm that is expected to challenge Sho-Me Power’s rate structure shift. Houston said last week its increase amounts to about 24 percent. Houston is among 17 towns that buy their electrical power from Sho-Me Power Corp. Many face big jumps, including Ava, where the increase is estimated at 74 percent.
For its part, Sho-Me Power Corp. says it is passing along the cost of its own increased expenses from its power source, Associated Electric Cooperative. The communities say the new structure punishes growth through industrial expansion and future development. The rate is based on an inverted formula scale – increased use equals an increased rate.
Members of the Houston City Council on Monday approved contributing $5,000 to a fund that will aid in any legal challenge developed to fight the Sho-Me Power Corp. increase, which is effective April 1. Houston is among several communities expected to join.
Additionally, the communities are talking to the area’s Jefferson City delegation. Sho-Me Power Corp., formed as public utility, was regulated by the Missouri Public Service Commission until 1985 when it converted to an electric cooperative. The change removed it from oversight from the PSC.