The Missouri Department of Natural Resources’ Division of Energy announces the Municipal Utility Emergency Loan Program to provide relief to municipal utilities facing price surges as a result of the February polar vortex.
Gov. Mike Parson signed legislation on May 13 to provide $50 million for no-interest emergency loans to municipal electric and natural gas utilities, as well as municipal utility commissions, for wholesale electric or natural gas costs incurred as a result of extraordinary prices between Feb. 10 - 20.
The department will begin accepting applications on June 2. Loans will be awarded on a first-come, first-served basis and will be repayable for a term of up to five years, with no penalty for early repayment.
“This past February, communities all over Missouri faced unexpectedly high prices for the energy that citizens need to keep warm,” said Carol Comer, director of the Department of Natural Resources. “We are pleased to offer a Municipal Utility Emergency Loan Program to lessen the impacts of the spike in energy costs as part of our mission to assist in meeting the urgent needs of these communities.”
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.
To learn more about the Municipal Utility Emergency Loan Program, please visit energy.mo.gov/content/municipal-utility-emergency-loan-program or contact the Missouri Department of Natural Resources’ Division of Energy at (573) 751-2254, or toll-free at (855) 522-2796.