May 17, 2023 – The Citizens Utility Board says Ameren Illinois’ proposed four-year electric rate hike should be slashed by at least $492 million.
“While a utility has to maintain its system, Ameren should not get a blank check,” CUB Executive Director David Kolata said. “Our expert witnesses combed through Ameren’s rate-hike proposal and cut out the fat, including an excessive profit rate for shareholders. We are hoping other parties will be able to recommend further reductions.”
CUB is asking Ameren customers to visit CUBHelpCenter.com to sign a petition to the Illinois Commerce Commission (ICC) against the proposed increase.
On January 20, Ameren Illinois filed for a four-year, $1.3 billion rate hike with the ICC. For a customer who uses about 10,000 kilowatt-hours (kWh) of electricity annually (or about 833 kWh a month), the hike would increase Ameren delivery rates by an average of roughly $6.27 a month each year, for a cumulative increase of about $25 a month by 2027.
The company is also asking for a $160.4 million gas rate hike, which will increase bills by an average of about $6.68 a month for customers who use about 745 therms a year (or about 62 therms monthly).
Consumer advocates have sounded the alarm in 2023, as major Illinois gas and electric utilities are pushing for a record six rate hikes totaling $3.7 billion. In response to this unprecedented attack, several groups and agencies are challenging increases, including the Illinois Attorney General’s Office, Environmental Defense Fund, Illinois PIRG and CUB.
The ICC will rule on the rate-hike request around November, after an 11-month rate case. The proposed increase would take effect on Jan. 1, 2024 and impact delivery rates–what the utility charges to cover the costs of delivering electricity to customer homes, plus a profit. Those rates take up about a third to a half of electric bills.
Ameren Illinois serves about 1.2 million electric customers in Central and Southern Illinois.
