Establishes new provisions for renewable energy contracts

HB 2540, known as the Missouri Energy Freedom Act, creates a legal framework allowing large business customers to purchase renewable electricity directly from facility owners or developers. To qualify for these contracts, customers must have an annual peak demand of at least one megawatt, though they can combine multiple locations to meet this threshold. The bill outlines specific rules for pricing, contract duration, and the transfer of renewable energy credits to the buyer, while also defining the limited role of existing utility companies in facilitating these transactions. Additionally, the legislation sets a threshold where a utility must stop allowing such direct renewable energy deliveries if the volume reaches five percent of its total retail sales.