Judges Urge State Regulators to Slash Ameren Illinois Rate Hike Request by $44 Million
In a significant advisory ruling, state judges have recommended a substantial cut to Ameren Illinois’ proposed rate hike. The utility company initially sought a $128.8 million increase to its natural gas delivery services. However, the judges have suggested that this request should be reduced by $43.7 million.
Impact of the Rate Hike Request
The Illinois Commerce Commission, responsible for the final decision, is expected to announce its ruling by December 1. Consumer advocates are hoping for an even deeper cut to Ameren’s proposal. Jim Chilsen, a representative of the Citizens Utility Board, emphasized the need for the commission to act decisively. He stated, “For the sake of Ameren’s customers, who have suffered through one gas rate hike after another, we urge the Illinois Commerce Commission to go far beyond the proposed order and slash Ameren’s money grab.”
Ameren’s Rate Hike History
This request marks Ameren’s fourth rate hike proposal since 2018. The company serves over 800,000 customers in downstate Illinois, with its operational base in Collinsville. Initially, Ameren sought a $134 million increase earlier this year but has since reduced this amount.
Details of the Proposal
- Proposed increase: $128.8 million
- Judicial recommendation: Cut by $43.7 million
- Expected increase for customers: 13% or approximately $10 per month
- Number of customers served: Over 800,000
- Previous rate hikes since 2018: Four
Investment Justifications
Ameren claims that the funds from the rate increase would help ensure compliance with federal pipeline safety standards while providing reliable service. Brad Kleoppel, a senior director at Ameren, mentioned that the proposed investments are aimed at reducing gas leaks and enhancing reliability. To mitigate costs, Ameren strategically purchases most of its natural gas during the summer months when prices are lower.
Consumer Concerns
Despite these assurances, watchdog groups express concern regarding the financial burden on consumers. In recent times, residents in the Metro-East region have seen their utility bills rise by about $200. Darnell Tingle, executive director of United Congregations of Metro-East, noted the pressing issue, stating, “People are being forced to choose between heating their homes and feeding their families.” He acknowledged the proposal for a rate hike reduction but called for more substantial actions from Ameren.
As the Illinois Commerce Commission prepares to make its ruling, all eyes are on how they will respond to both the judges’ recommendations and the concerns of consumer advocates.
