The Missouri Retailers Association has written a letter to the Missouri General Assembly, asking it to institute a 3 percent cap on electric rate increases during the next legislative session.
Based in Jefferson City, the group serves as the lobbying arm for retailers around Missouri. In the letter, MRA said the unpredictable nature of rate increases is hurting Missouri residents and businesses and making it harder for brick-and-mortar retailers to compete with internet retailers.
The group said it will commit to working on comprehensive energy legislation during the 2018 legislative session, which begins Jan. 3.
Over the past decade, electric rates in Missouri increased at a rate of four times the national average, the MRA said.
"These rate spikes are unpredictable and harmful to our economy," the association said in the letter. "This will give Missourians the stable and predictable pricing we need."
MRA President David Overfelt told the News Tribune the rate increases make it hard for brick-and-mortar retailers to compete with online retailers, who don't have to pay electricity costs for stores.
MRA also said it would oppose any legislation reducing the burden of proof needed by the Missouri Public Service commission to raise electric rates. If legislation is passed that caps electric rate increases, the group is willing to compromise on issues that increase PSC authority and make investments in Missouri's electric grid.
Overfelt said the MRA recognizes the importance of building an electric grid that provides reliable electricity to retailers. He added, though, utility customers seem to have borne a disproportionate share of the costs associated with it.
In March the PSC, which regulates electric rates statewide, approved an increase in rates for Ameren Missouri. In July 2016, Ameren asked for a revenue increase of about $206.4 million. The PSC agreed to increase Ameren's annual electric operating revenue by about $92 million in March, the Associated Press reported.
At that time, the commission's staff estimated the average monthly customer's bill would increase by about $3.70 per month, according to the AP. Ameren Missouri serves about 1.26 million customers statewide.
In May, the commission also increased rates for Kansas City Power & Light's 270,000 customers in Missouri. The utility originally asked for an increase of more than $12 per month, according to Fox 4 Kansas City. Instead, the commission granted a rate increase of about $4 per month, which netted $32 million for KCP&L.
Both utilities have programs for residential customers struggling to pay their bills.
Residential electric rates for Missourians trend high, according to personal finance site WalletHub. Missouri residents tend to spend more on electricity than residents in its border states, according to the firm. In a 2017 study, WalletHub found Missouri residents spent more on electricity than just 17 other states, with the average family spending $134 on electricity per month.
An Ameren spokeswoman Friday declined to answer questions about whether Ameren supports or opposes a rate cap. In a statement, Warren Wood, vice president of external affairs and communications for Ameren Missouri, said the utility will study the rate cap idea.
"We understand that action must be taken to update Missouri's century-old regulatory processes, with a goal of making rates more stable and predictable for our customers while bolstering the security and flexibility of the grid," Wood said. "We thank these Missouri retailers for their leadership and will study the rate cap idea closely."