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Interest groups: Ameren prioritizes profits over rate affordability

Interest groups:  Ameren prioritizes profits over rate affordability

Photo: Shutterstock


Springfield, IL (CAPITOL CITY NOW) – First high summertime electric rates, now potentially high gas rates.

The Citizens Utility Board (CUB) and other organizations are, in a way, celebrating a judge’s recommendation reducing gas rate requests by Ameren Illinois.

Ameren has asked the Illinois Commerce Commission to raise rates on both next year, but a proposed order would cut a requested $129 million rate hike for natural gas delivery by about one third, or, $44 million.

“The proposed order is a step in the right direction,” said Jim Chilsen, CUB spokesperson.  “It reinforces that Ameren’s rate hike is bloated and must be cut.  But it only accounts for about half of the overcharges in Ameren’s rate hike requests.  So it still falls short of giving consumers their just due.”

Ameren has said the hikes are needed in order to meet federal standards and make upgrades.  CUB claims it would be the fourth such rate hike in seven years.  CUB claims “…Ameren’s gas segment and the utility’s parent company…have recorded staggering profit increases of 112 percent and 45 percent, respectively, over the same period,” according to a separate news release, on top of a summer that saw electricity rates spike due to various factors, which was out of the utility’s control.

“Ameren does not always consider all alternatives to typically replacing infrastructure, and that they are biased toward choosing the most expensive option, when considering different options for how to maintain safe, reliable service,” said Abe Scaar, Director, Illinois Public Interest Research Group (PIRG).

The ICC must still make its final decision, expected around December 1.  If left alone, the proposed rate hike would increase your gas delivery bill by as much as $10 a month.  The groups want to see the rate hike cut by two-thirds, instead of just one-third.

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