Testimony in Opposition to SB 4 – Utility Bill Increase

Date: March 10, 2025
To: Chairman Bromley and Members, House Utilities Committee
From: Lucas Caldwell-McMillan, Chief of Policy Staff, Empower Missouri
Re: Our opposition to SB 4

Empower Missouri has spent more than 120 years fighting poverty in Missouri. Today, we come to present testimony on a bill which specifically targets our neighbors with the lowest incomes. On behalf of our staff, board, and coalition members we are asking you to oppose Senate Bill 4.

Senate Bill 4 has been estimated to increase utility bills by $1,115 per Missouri household. This large increase will impact all Missourians and it will especially impact low-income households, families with children, and seniors. Housing costs, including utility bills, are often the largest monthly costs a household pays. The U.S. Energy Information Agency found that 1 in 3 households with children and 1 in 5 senior households experience energy insecurity.  Twenty-nine percent of households with children report that they had to reduce or forgo food or medicine to pay energy costs. The increased costs in Senate Bill 4 will exacerbate this phenomenon referred to as “heat or eat” that forces low-income families to choose between a utility disconnect or skipping a meal. Increased utility costs also increase homelessness as households cannot keep up with the growing cost of staying in their home. Older adults are the fastest growing age group experiencing homelessness with one study predicting that the number of homeless older adults will triple by 2030.  

The hidden costs of high energy bills for low-income families

Increased utility costs on Missouri families will have negative downstream effects on the economy and costs to taxpayers. Numerous studies have linked energy insecurity from high energy bills to negative health outcomes such as respiratory illness, anxiety, and depression. Poor health outcomes lead to decreased employment and increased health costs. High utility bills also lead to homelessness as families cannot afford the cost of rent and utility bills. One individual experiencing chronic homelessness is estimated to cost taxpayers $35,000 annually. Increased utility costs do not just impact individual families, they also increase healthcare costs, increase costs to taxpayers, and slow down Missouri’s economy. 

SB 4 will pile on higher utility bills for Missouri families who are already struggling with the increased costs of groceries, rent, and other necessities. For these reasons, we urge the committee to oppose SB 4. Thank you for your time and consideration of this matter.