Governor Parson announces $ 750,000 emergency energy loan to Hannibal
Governor Mike Parson announced an interest-free loan of $ 750,000 to the town of Hannibal to mitigate the impact of the excessive wholesale costs of electricity and natural gas associated with the extreme weather event of February 2021. The loan was made possible thanks to the Emergency loan program for municipal utilities.
“The Municipal Utilities Emergency Loan Program provides an opportunity for utilities and city boards to recoup the high costs associated with the extraordinary cold snap we experienced in February,” said Governor Parson. “We were happy to create this program which has helped our towns and villages and helped Missourians avoid excessive increases in monthly utility bills. This emergency loan of $ 750,000 to the town of Hannibal will reduce the financial impact on the town and its residents. “
The loan program was established when Governor Parson signed into law on May 13, 2021, providing $ 50 million for emergency interest-free loans. The program is administered by the Energy Division of the Missouri Department of Natural Resources and serves municipal electricity and natural gas utilities, as well as municipal utility boards, providing loans for wholesale costs electricity or natural gas incurred due to the extraordinary prices of Feb. 10-20, 2021. About 53 municipalities have applied individually or through municipal utility boards since the ministry began accepting requests on June 2.
When the unusual cold snap hit in February of this year, wholesale prices for natural gas and electricity rose as demand increased and production came to a halt at some facilities in the United States. . These price increases have severely affected communities in Missouri.
“We are honored to be able to help the Missouri utilities which 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 ensure financial stability for municipal utilities and their customers. We are grateful to the governor for moving so quickly to work with the legislature to secure funding. “
The combined amount requested in the requests to date is approximately $ 41 million. Funding is still available. To learn more about the Emergency loan program for municipal utilities, contact Daniel Dahler of the Missouri Department of Natural Resources at 800-361-4827 or 573-522-3371.