Kansas Bill Tracker: How Missouri Legislature's Energy and Housing Bills Hit Kansas City Wallets

Two pieces of legislation advancing through the Missouri General Assembly will reshape how Kansas City residents pay for power and find affordable housing. Senate Bill 847, which cleared committee this week, allows investor-owned utilities to raise rates without the traditional public hearing process. House Bill 521, passed last month, loosens zoning rules for single-family neighborhoods to permit more apartment buildings. Together, they will directly affect thousands of Kansas City households' monthly expenses and rental options.

The bills arrive at a moment when Kansas City faces competing pressures. The region's population has grown 2.1 percent since 2020 according to the U.S. Census Bureau, straining housing supply even as Evergy, the utility serving much of Kansas City, has filed three rate increase requests in five years. Neither the legislature nor Kansas City's municipal government has successfully passed major housing production policies in over a decade. Local housing advocates have called the vacancy rate in Kansas City below 4 percent, well below the 5 to 6 percent threshold economists consider healthy.

Utility Bills and Consumer Protections

SB 847 changes how Missouri regulates utility rate increases. Under current law, companies like Evergy must file rate cases with the Public Service Commission, which holds public hearings where Kansas City residents and tenant organizations can testify before approving or rejecting increases. The bill creates an alternative process allowing utilities to recover some costs through what lawmakers call "rider mechanisms" that bypass the full hearing requirement. Policy analysts say this streamlines the process for utilities but reduces opportunities for public scrutiny of rate requests.

For a Kansas City household with an average electric bill of $125 monthly, according to the U.S. Energy Information Administration's 2024 data for the Kansas City metropolitan area, the change means faster cost increases without guaranteed public testimony periods. Evergy's last major rate case in 2021 resulted in a 4.9 percent increase affecting roughly 1.5 million customers across Missouri and Kansas. The company projects it will need additional increases to fund grid upgrades. Under SB 847, some of those increases could proceed on a faster timeline.

Housing Supply and Neighborhood Change

HB 521 directs Missouri municipalities to allow duplexes, triplexes, and small apartment buildings in single-family zoning districts without requiring variance hearings. Kansas City's planning department has estimated that roughly 40 percent of residential land is zoned exclusively for single-family homes. The bill, which takes effect January 1, 2027, requires the city to align its code within 12 months or face potential state penalties.

Local real estate analysts note that allowing apartments in single-family zones typically increases housing supply by 15 to 25 percent in affected neighborhoods over five years. For Kansas City renters paying median rents of $1,180 monthly according to Zillow data from March 2026, more supply could moderate price growth. However, residents in established neighborhoods near Midtown, the Plaza, and South Kansas City will see more intensive development with reduced parking and taller buildings allowed by-right. City Council will hold hearings on revised zoning language starting August 15.

Neither bill has local Kansas City officials signing off. The city's housing director stated in a planning committee meeting last month that the city preferred a gradual, neighborhood-by-neighborhood approach rather than statewide mandate. Meanwhile, the Kansas City Chamber of Commerce supports HB 521, saying it addresses workforce housing shortages affecting employers downtown and in the Northland.

Both bills continue moving toward Governor Holden's desk. SB 847 awaits a floor vote scheduled for late July. HB 521 is expected to be signed by early August. Kansas City residents should watch for the city's revised zoning draft and monitor Evergy filings at the Public Service Commission website for rate increase announcements.