The Municipal Utility Emergency Loan Program provides municipal utilities and commissions the opportunity to recover from the high costs associated with the extraordinary cold snap we experienced in February 2021. A $750,000 interest-free emergency loan to the City of Hannibal will lessen the financial impacts for the city and its residents.
The loan program was established when Governor Parson signed legislation on May 13, 2021, to provide $50 million for interest-free emergency loans. The program is administered by the Missouri Department of Natural Resources’ Division of Energy and 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 from February 10-20, 2021.
When the unusual cold snap occurred in February 2021, 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 honored to be able to assist Missouri utilities that experienced unprecedented energy prices earlier this year,” said Dru Buntin, Director of the Department of Natural Resources. “The priority has been to meet the needs of our communities and provide financial stability for municipal utilities and their customers."