Haley Swaino
COLUMBIA, Mo. (KMIZ)
Over the last two years, federal and state regulators have worked to establish what they believe are effective safeguards to protect average ratepayers from data center power costs.
Amid a surge in large-scale data center projects across the Show-Me State, Missouri Senate Bill 4 helped lay the groundwork for consumer protections.
“Large load customers and data centers have always kind of been operating in Missouri for several decades,” said Rich Germinder, senior policy adviser with the Missouri Public Service Commission. “But the scale of the load growth that we’re seeing really dictated, ‘We need to have a different approach.’”
Signed into law by Gov. Mike Kehoe in April 2025, SB 4 requires large-load customers to pay their full share of grid and power costs. A specific provision also changed the way the Public Service Commission deals with electric rates and the adoption of electric facilities.
The provision requires utility companies to establish large-load tariffs. By December 2025, the Public Service Commission had approved contracts for both Ameren Missouri and Evergy.
“This large-load tariff enabled us to, before we connect these customers, they have to sign these contracts,” Ameren Missouri Economic Development Manager James O’Mara said. “Because we understand the costs that could be required to serve them. They have to pay that cost.”
Source: Charles River Associates
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In accordance with Senate Bill 4, the large-load tariffs were critical in outlining specific requirements for customers using 75 megawatts or more a month.
When these customers plug into the grid, they’re under contract to:
Sign a minimum 12-year contract, with an option to extend the contract for five more years if the company scales up operations.
Cover full grid hookup and infrastructure costs upfront.
Pay a monthly demand charge set at 80% of their contracted maximum electric demand, even if they use less electricity than projected.
Provide collateral funds equal to two years of minimum monthly bills, in the event of bankruptcy or closure.
Give 36 months’ written notice to end service and pay exit and early termination fees.
Strategic upfront planning for hyperscale data centers has been key to ensuring everyday Missouri customers don’t have to pick up part of the tab, Germinder said.
“What was really unique or interesting about the large-load tariff requirement and Senate Bill 4 was Missouri was one of the first states to actually pursue that requirement,” Germinder said.
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State regulators took note of what was happening across the country with increasing data center construction and really got ahead of the artificial intelligence boom in the Show-Me State, according to Germinder.
Senate Bill 4 also restructured the Public Service Commission’s Integrated Resource Planning process.
“Basically understanding that we’ve, for the first time in several decades, have had large-load growth. So what do we need to do from a planning perspective to be more prepared,” Germinder said.
Under the year-old law, the PSC can now offer a fast-track approval process for power generation projects.
As the process operates now, when a utility submits a plan to the commission, the commission doesn’t have any authority to approve the plan or to disprove components of the plan. Germinder said the new process would be a contested one, where the commission will give feedback-driven decisions in determining whether a plan is sufficient to meet the needs of customers, safely and at a reasonable rate.
The commission is considering rules for fully implementing the changes, according to Germinder.
At the federal level, multiple major technology and AI companies — including Google and Amazon — signed onto the White House Ratepayer Protection Pledge in March.
The initiative ensures the energy demands of a data center are fully funded by its tech company.
According to White House data, the pledge covers roughly 80% of power delivered to U.S. homes and businesses, affecting an estimated 263 million Americans.
“It essentially established a lot of the things that we talked about in relation to large-load tariffs and essentially assigning those costs for those large loads,” Germinder said.
While both Missouri SB 4 and the White House Ratepayer Protection Pledge provide similar safeguards, they differ in legal nature.
President Donald Trump’s proclamation relies on voluntary commitments from tech giants, utilities and governors. It is not a legally binding statute, as SB 4 is.
Ameren Missouri not only claims there are safeguards in place to protect average ratepayers from the power costs brought on by data centers, but that these centers can actually bring savings to other customers.
By 2028, data center growth is expected to deliver about $21 million in savings to Ameren Missouri customers, according to the utility.
“Historically, in the utility industry, it’s always been advantageous to connect high energy-intensive users,” O’Mara said. “Because at the end of the day we have fixed costs. And by having larger users to use that electricity, it spreads those fixed costs amongst a larger user base.”
Some consumer advocacy groups say current legislation will not prevent data centers from raising rates, and power plant production already underway could be a factor.
Look for the full report on data centers and power costs Monday on abc17news.com and after Monday Night Football.
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