Jon Styslinger, Altec senior vice president, second from right, leads Missouri Gov. Jay Nixon on a tour of the facility Monday morning in St. Joseph. Gov. Nixon was in town to sign the Energy Efficient Investment Act into law.

Gov. Jay Nixon attempted to shed some light on new energy efficiency legislation in St. Joseph on Monday.

He toured the campus of Altec Industries, which already is participating in a program with KCP&L to replace old overhead lighting with greener bulbs.

It’s a move that normally would pay them back in savings within six years, but with an incentive payment from the power company, Altec will reap the benefits within three years.

Kansas City Power & Light only was able to help Altec with one of its buildings on the St. Joseph campus, however, because of limitations in the electrical rate structure.

That’s all supposed to change, under a bill the governor signed into law Monday morning.

“The Missouri Energy Efficient Investment Act is proof that the state of Missouri is serious about investing in energy efficiency programs,” Mr. Nixon said.

SB 376 will allow electric companies to recoup costs from energy conservation programs by permitting them to change their rates accordingly. That can only happen if the Public Service Commission deems that the new rates are equal to or less than what the electric companies would’ve charged if they’d opted to build a new power plant, according to the bill.

“My friends, that is a big turn,” the Democratic governor told a group of Altec and KCP&L executives Monday morning, along with other community members. “It is an important, historic step for the state of Missouri.”

Mr. Nixon faulted the current rate structure for giving utility companies incentives for higher power outputs and disincentives for efficiency efforts.

This bill, which goes into effect Aug. 28, will let the PSC establish rates that make energy efficiency at least as profitable as building a new power plant, Mr. Nixon said.

“An amount of energy saved (will be counted) as the same exact value as a unit of energy produced,” said Senate President Pro Tem Charlie Shields, R-St. Joseph.

Bill author Sen. Brad Lager, a Savannah Republican, said the bill is designed to deter the creation of coal and nuclear plants and instead incent homeowners and companies to partner with utilities to find ways to reduce energy.

Mr. Lager said energy efficiency is an essential part of becoming more energy independent.

“It’s something we can do today that has an immediate impact,” Mr. Lager said.

In the coming weeks and months, Mr. Nixon said the PSC and Missouri Department of Natural Resources will implement and release a new rate matrix for consumers based on the law.

The law also will require the state to buy appliances that meet energy efficiency specifications under the Energy Star program, part of a U.S. Environmental Protection Agency effort, unless the cost exceeds the energy savings.

Alyson E. Raletz can be reached at alysonraletz@npgco.com.

Jay’s busy day

On Monday, Gov. Jay Nixon also:

* Vetoed legislation intended to lighten the caseloads of Missouri’s public defenders.

* Vetoed a bill that would have loosened the state’s bingo regulations and eliminated taxes on bingo cards.

* Signed legislation expanding state regulation of private jails.

* Signed a bill that requires students to stay in school longer before being allowed to drop out, lets school districts adopt four-day school weeks and establishes a voluntary merit pay system for teachers in St. Louis.

— Associated Press