New Rules Aim to Protect Ratepayers Amid Rising Power Demand
Missouri has become the latest state in the central U.S. to adopt new regulatory measures designed to control the rapid expansion of data centers while preventing ratepayers from absorbing the high cost of supplying their massive power needs.
The Missouri Public Service Commission (PSC) voted to approve a large-load tariff submitted by Evergy, the utility serving both Missouri and Kansas. The tariff is intended to ensure that high-capacity users, such as hyperscale data centers, pay a fair and predictable share of costs associated with grid expansion and increased demand.
Split Views Within the Commission and Consumer Advocates
PSC Staff and Public Counsel Declined to Join Settlement
While Kansas regulators reached a unanimous agreement on the same large-load tariff earlier this year, two groups in Missouri did not join the settlement:
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The Missouri Public Service Commission staff, and
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The Missouri Office of Public Counsel, which represents residential and small business consumers.
Both groups expressed concerns about rate design complexity and potential cost impacts for existing customers, arguing that additional provisions were needed to better protect smaller consumers.
Chair Kayla Hahn Defends Simplified Tariff Structure
Concerns That Complexity Could Deter Investment
PSC Chair Kayla Hahn said she believed the alternative proposal offered by staff would have created excessive complexity, potentially discouraging major energy users from locating in Missouri.
“Staff’s proposal requires upwards of 25 different charges that a large user could be subject to paying,” Hahn said.
“The evidence showed us the vast amount of charges and uncertainty make it unclear if a large user would be paying too much, too little or, more likely, would forgo locating in Missouri altogether as even a sophisticated user would be unable to predict what its ultimate bill responsibility would be.”
Hahn emphasized that the approved Evergy tariff provides clarity and consistency—a key factor as Missouri seeks to attract data center development without burdening residential and small commercial customers.
Regional Context: States Move to Regulate Data Center Power Use
Following Kansas and Oklahoma Examples
Missouri’s move mirrors recent regulatory trends in neighboring states. Both Kansas and Oklahoma have enacted or proposed large-load rate structures to address the explosive energy demand created by data centers and AI infrastructure.
Regulators across the region are working to balance economic growth with grid reliability, ensuring that industrial-scale power users—not everyday consumers—cover the costs of their electricity-intensive operations.
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