Government Energy Policy, Business and Technology

New electricity rate in Missouri expected to benefit efficiency and renewables

Midwest Energy News: A key step to saving energy, efficiency advocates say, is to reward customers for using less by offering them a lower rate.

Earlier this month, the Missouri Public Service Commission ordered Kansas City Power & Light to begin using an “inclining block” rate system starting on May 28 — tying the rate customers pay for electricity to their overall usage. The two-tiered policy essentially provides a small savings for modest use of energy and imposes a small penalty on customers who use larger amounts.

The rate structure, versions of which are in use by utilities in Minnesota, Colorado and other states, is also likely to improve the economics of efficiency upgrades and renewable energy, according to one clean-energy promoter.

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