The loan was administered through Department of Natural Resources (DNR) The Energy Division and is part of Parson’s Emergency Utility Loan Program last month. The General Assembly disbursed $ 50 million in interest-free loans to help local utility companies offset the impact of the hurricane; Since its inception this month, 52 municipalities have applied for the program, according to DNR.
Parson presented a check to the city on Tuesday touting an opportunity for the state to support utilities that are struggling with costs due to extreme weather.
“The Emergency Loan Program for Municipal Utilities provides municipal utilities and commissions with an opportunity to recover from the high costs associated with the extreme cold weather we experienced in February,” Parson said. “A nearly $ 3.4 million emergency loan for the City of Fulton will reduce the financial impact on the city and, more importantly, on its residents. This loan program assists municipalities like Fulton in their recovery efforts and eliminates the need to immediately pass on excessive spending to clients. ”
Winter storms hit the Midwest in February, affecting everything from distribution of the vaccine to the legislature and forcing companies to initiate rolling blackouts… While investor-owned utilities are looking at ways to mitigate the impact on consumers’ bills, local companies are struggling with tight budgets; Macon Municipal Utilities CEO Stephanie Wilson said her company’s $ 1.8 million annual budget was depleted in a four-day period due to astronomical price increases, which required to shift costs to customers and suspend planned infrastructure investments.
IN The Missouri Public Utilities Union (MPUA) has been a supporter of the fund, taking part in virtual press call with lawmakers in March to protect the fund.
“On behalf of our hometown Missouri utilities, we want to thank the Governor and the General Assembly for providing these funds to the state’s utilities,” said MPUA President and CEO John Twitty. “This program is expanding much needed assistance to communities across the state.”
A bipartisan group of lawmakers from both houses urged Parson to request a fund after the February cold snap. Parson obliged next weekby placing it in the remit additional budget… The bill was signed last month.
The Department started accepting applications 2 June. Loans will be repayable for up to five years without interest.