Missouri Governor Mike Kehoe recently signed into law a bill that includes a provision called “construction work in progress” (CWIP), which allows power companies to bill their customers for the costs of building power plants during the construction phase. This marks a significant shift in utility regulations in the state, as it repeals a previous ban on CWIP that was initiated by Missouri voters in 1976.
CWIP is a contentious issue in the energy industry, as it raises questions about when utility companies should collect money for capital investments in power plants. Traditionally, these costs were recovered after the completion of a project, but CWIP allows for the collection of funds during the construction phase.
The new law in Missouri is part of a larger trend seen in several state legislatures, with neighboring states like Arkansas and Mississippi also passing laws that include CWIP provisions. Proponents of CWIP argue that collecting funds during construction can save customers money in the long run by avoiding interest payments on loans. However, opponents raise concerns that CWIP policies give utility companies guaranteed capital and reduce their financial risk, potentially leading to riskier decisions in planning and spending.
The sponsors of the Missouri bill, Senator Mike Cierpiot and Representative Josh Hurlbert, have defended the CWIP provisions by stating that they only apply to gas generation plants and not nuclear projects. They also highlighted a clawback provision in the bill, which would require companies to pay back customers with interest if a plant is canceled. This provision is intended to discourage the use of CWIP for more risky projects like nuclear plants.
The history of CWIP laws dates back to the 1970s when utility companies argued for alternative financing models to address rising construction costs and predicted growth in power demand. However, the demand for electricity did not materialize as expected, leading to abandoned projects and questions about charging ratepayers for incomplete work. States with CWIP laws in place faced a different scenario, as ratepayers had already contributed significant funds towards construction costs.
Overall, the debate over CWIP continues to evolve as states grapple with the balance between ensuring a reliable energy supply and protecting consumers from potential financial risks. The passage of the new law in Missouri reflects a broader trend towards revisiting utility regulations and exploring new approaches to financing energy infrastructure projects. A recent investigation by The Post and Courier in 2017 uncovered the risky spending practices associated with CWIP and similar policies in 11 states. These policies have funded major energy projects that turned into costly failures, such as the Kemper Project in Mississippi, the V.C. Summer expansion project in South Carolina, and Units 3 and 4 at Plant Vogtle in Georgia. These projects resulted in billions of dollars in losses for ratepayers.
When a CWIP-financed project fails, ratepayers are left with little recourse to recover their money. In some cases, like with the Kemper Project, legal action was necessary to hold the utility accountable. However, in other instances, such as the V.C. Summer project, ratepayers continue to bear the financial burden without any restitution.
The investigation highlighted the case of Ohio, where a utility bribery scandal led to the introduction of a bill aimed at reversing prior CWIP policies. The scandal revealed that funds intended for construction were misappropriated for other purposes, leaving ratepayers on the hook for potential costs.
Despite the risks associated with CWIP, several Republican-dominated legislatures are pushing for similar policies in other states. These bills come at a time when electricity demand is expected to surge due to the expansion of AI technology. States are eager to attract data centers with incentives like CWIP, but the uncertainty surrounding future energy needs raises concerns about who will ultimately bear the costs.
Environmental advocates also caution against locking in plans that may not align with sustainable energy goals. CWIP policies incentivize the construction of traditional power plants over more environmentally-friendly alternatives like microgrids and batteries. This narrow focus on capital-intensive projects could limit innovation in the energy sector and hinder progress towards a cleaner future.
The influence of utility companies in shaping energy policy is evident in the generous campaign contributions made to politicians. This cozy relationship raises questions about the motivations behind CWIP bills and whether they truly serve the best interests of ratepayers.
In conclusion, the investigation sheds light on the risks and uncertainties associated with CWIP policies and underscores the need for greater transparency and accountability in the energy sector. Ratepayers deserve protection from costly mistakes and should have a say in how their money is spent on energy projects. “5 Tips for Improving Your Mental Health”
Taking care of your mental health is just as important as taking care of your physical health. In today’s fast-paced world, it’s easy to get caught up in the hustle and bustle of everyday life and neglect our mental well-being. However, there are simple and effective ways to improve your mental health and overall well-being. Here are 5 tips to help you on your journey to better mental health:
1. Practice mindfulness: Mindfulness is the practice of being present in the moment and fully aware of your thoughts, feelings, and surroundings. By practicing mindfulness, you can reduce stress, anxiety, and depression. You can start by taking a few minutes each day to sit quietly and focus on your breath. This can help calm your mind and bring you into the present moment.
2. Exercise regularly: Exercise is not only good for your physical health but also for your mental health. Physical activity releases endorphins, which are known as the “feel-good” hormones. Regular exercise can help reduce symptoms of anxiety and depression, improve your mood, and boost your self-esteem. Aim for at least 30 minutes of moderate exercise each day, such as walking, jogging, or yoga.
3. Get enough sleep: Sleep is essential for your mental health. Lack of sleep can affect your mood, concentration, and overall well-being. Aim for 7-9 hours of quality sleep each night. Create a bedtime routine, such as turning off electronic devices an hour before bed, and practicing relaxation techniques like deep breathing or meditation to help you unwind and prepare for sleep.
4. Eat a balanced diet: What you eat can have a significant impact on your mental health. Eating a diet rich in fruits, vegetables, whole grains, and lean proteins can help improve your mood and overall well-being. Avoid processed foods, sugary snacks, and excessive caffeine, as they can affect your energy levels and mood. Stay hydrated by drinking plenty of water throughout the day.
5. Seek support: It’s important to reach out for help if you’re struggling with your mental health. Talk to a trusted friend, family member, or mental health professional about how you’re feeling. Support from others can provide comfort, guidance, and perspective. Don’t hesitate to seek professional help if you need it. Therapy, counseling, or medication can be effective treatments for mental health conditions.
Improving your mental health is a journey that requires patience, self-care, and dedication. By practicing mindfulness, exercising regularly, getting enough sleep, eating a balanced diet, and seeking support, you can take positive steps towards better mental health and overall well-being. Remember to be kind to yourself and prioritize your mental health as you navigate life’s challenges.
