Missouri debates nuclear plant financing: ratepayers pay upfront or later for carbon-free power

Missouri lawmakers are debating who should pay for new nuclear power plants as electricity demand rises and states seek carbon-free energy sources. A policy called construction-work-in-progress (CWIP) lets utilities charge customers during construction rather than after plants start operating. Supporters say upfront payment avoids higher interest costs, while critics argue ratepayers are used as a bank for risky projects with a history of budget overruns. States like Missouri, Kansas, and North Carolina have passed CWIP policies in recent years, reviving a financing model from the 1970s energy crisis. Energy economist Michael Sykuta notes that without CWIP, utilities have less incentive to build expensive projects, potentially slowing the transition to low-carbon power. The debate highlights the tension between accelerating clean energy investment and protecting consumers from rising utility bills.