Last week, DGA Vice President Ryan Hodum – along with a team from Wal-mart, General Motors, and the R Street Institute – met with Missouri lawmakers to discuss the broad support for renewable energy and customer choice policy in the state. PPAs are contracts between an energy consumer (like a factory) and a provider (in this case a renewable energy supplier). The renewable energy can be either onsite or offsite and is owned and operated by the energy provider.

Since PPAs allow companies to enter into contracts for renewable energy with non-utility energy service providers, they can enable competition without undercutting the business of incumbent electric power suppliers. Currently, Missouri’s policies are restrictive for companies trying to enter into PPAs with renewable energy providers. However, Missouri has the opportunity to join the many states – such as Utah, Texas, Georgia, and Iowa – that already enable energy choice. Representative Bill Kidd (R-20) introduced House Bill 439, the Missouri Energy Freedom Act, which would enable onsite and offsite third party PPAs for renewable energy and has already received wide support from Missouri companies, energy developers, and the United States Army.