Zero-interest loan will ease impact of electricity, natural gas costs from February cold snap
JEFFERSON CITY, MO, JUNE 29, 2021- Today, Governor Mike Parson joined City of Fulton officials and the Missouri Department of Natural Resources’ Division of Energy to announce a $3.39 million zero-interest loan to the City of Fulton to ease the impact of extraordinary wholesale electricity and natural gas costs associated with the February 2021 weather event.
The loan was made possible through the Municipal Utility Emergency Loan Program, established when Governor Parson signed legislation on May 13 to provide $50 million for interest-free emergency loans. The program serves municipal electric and natural gas utilities, as well as municipal utility commissions, by providing loans for wholesale electric or natural gas costs incurred as a result of extraordinary prices Feb. 10 through Feb. 20, 2021. Approximately 52 municipalities have applied individually or through municipal utility commissions since the department began accepting applications on June 2.
“The Municipal Utility Emergency Loan Program provides municipal utilities and commissions the opportunity to recover from the high costs associated with the extreme cold we experienced in February,” said Governor Mike Parson. “The nearly $3.4 million emergency loan to the City of Fulton will lessen the financial impacts for the city and more importantly its residents. This loan program aids municipalities, like Fulton, in their recovery efforts and prevents them from having to immediately pass excessive costs on to customers.”
When the unusual cold snap occurred in February of this year, prices for wholesale natural gas and electricity rose as demand increased and production stopped at some facilities in the United States. These increased prices severely impacted Missouri communities.
“We’re proud to be able to assist Missouri utilities that experienced unexpected high energy prices in February,” said Dru Buntin, acting director of the Department of Natural Resources. “The priority has been to meet the needs of our communities and provide financial stability for Missouri utilities and their customers. We are grateful to the Governor for acting so quickly to work with the legislature to secure the funding.”
The combined amount requested in the applications totals approximately $40 million. Funding is still available. To learn more about the Municipal Utility Emergency Loan Program, visit energy.mo.gov/content/municipal-utility-emergency-loan-program or contact Daniel Dahler at 573-522-3371 or daniel.dahler@dnr.mo.gov.