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Thursday, April 3, 2025

Legislation introduced by senators aims to stabilize energy rates across six states

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Sen. Jerry Moran, US Senator for Kansas | Official U.S. Senate headshot

Sen. Jerry Moran, US Senator for Kansas | Official U.S. Senate headshot

U.S. Senators Jerry Moran, Roger Marshall, and Josh Hawley have introduced a legislative proposal aimed at providing stable energy rates and a reliable electric grid for states under the Southwestern Power Administration (SWPA). The states affected include Kansas, Arkansas, Louisiana, Missouri, Oklahoma, and Texas.

The proposed legislation, known as the Southwestern Power Administration Fund Establishment Act, seeks to authorize SWPA to operate using a self-funding revolving Treasury fund. This mechanism is intended to provide SWPA with a consistent financing source to stabilize customer rates which can fluctuate due to market demand and weather conditions. Additionally, it aims to help SWPA plan long-term infrastructure improvements and avoid sudden spikes in power rates during extreme weather events or prolonged droughts.

Senator Moran emphasized the importance of stable electricity access in Kansas: “It is critical that Kansans have access to reliable electricity at stable rates, especially during extreme and dangerous weather.” He added that the bill would support necessary infrastructure upgrades while preventing mass outages.

Senator Marshall highlighted the need for affordable power in Kansas: “Kansans – especially our farmers and ranchers – need reliable and affordable power.” He expressed pride in supporting this legislation alongside his colleagues.

Senator Hawley noted recent natural disasters in Missouri as evidence of the necessity for dependable energy: “After the devastating tornadoes last weekend that left victims without power for days, Missourians deserve consistent and affordable energy.”

Kansas Electric Cooperatives, Inc. has voiced strong support for the act. They believe it will improve grid reliability while stabilizing rates. Their statement acknowledged Senators Moran and Marshall's efforts in promoting beneficial legislation for rural cooperatives.

The National Rural Electric Cooperative Association (NRECA) also supports the act. They see potential benefits from the self-financed revolving loan fund authorized by this bill which would enhance SWPA's ability to manage infrastructure needs effectively amidst changing market conditions.

The American Public Power Association praised the introduction of this act as well. They pointed out its potential role in streamlining funding processes that could prevent rate spikes during adverse weather conditions while ensuring customers cover all generation costs associated with hydropower produced at Army Corps dams.

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