(Missourinet) – A sweeping new law allows Missouri utility companies to use an accounting practice that lets them recover depreciation on investments up front.
Ameren, the state’s largest power company, says it stimulates investment in long-needed infrastructure upgrades. Cara Spencer with Consumers Council considers the accounting practice a ploy on the part of utilities to boost profits.
The new utility law approved by the state legislature this year goes into effect August 28th. Ameren’s Warren Wood notes many interest groups decided to support utility legislation for the first time because of what the new law means for the electric grid.
David Woodsmall with Midwest Energy Consumers Group thinks Ameren misleadingly sold the legislation as a driver of grid modernization.
Utility watchdog groups say the new law is too vague and allows the utilities to spend money on almost anything they want.