 On Tuesday, the Illinois Commerce Commission, or ICC, held the only
scheduled public hearing on gas and electricity rate increases for
the 1.2 million Ameren customers.Ameren estimates the increases,
which would start in 2012, would cause the average customer's
electric bill to increase $36 a year and the average customer's
natural gas bill jump by up to $38 a year.
Nancy Nelson is the advocacy manager for AARP Illinois, an
organization that lobbies on behalf of people 50 and older. She also
was one of the two dozen people attending Tuesday's hearing.
AARP Illinois estimates utility bills equal about 14 percent of
their members' average monthly income.
"With the economy, (our members) are very concerned. They're very
concerned about being able to pay their utility bills, and as a
result, we are advocating in the Legislature and with rate hike
hearings like this, to not have unnecessary rate hikes," Nelson
said.
AARP Illinois said that Ameren's profit margins for the past year
-- about 11 percent for the electricity side of the business and
about 10 percent for the gas side of the business -- were high
enough and that any rate increase would only increase those margins.
The actual rate increases vary depending on where customers live:
-
Ameren customers
in the former CIPS coverage area -- mainly western and southern
Illinois -- would see an 11 percent increase in electricity
rates and a 15.5 percent increase for the cost of natural gas.
-
Ameren customers
in the former CILCO service area -- mainly central Illinois ---
would see a 16.5 percent electricity rate increase and a 24
percent hike for the cost of natural gas.
-
Ameren customers
in the former Illinois Power coverage area -- mainly pockets of
areas north of Peoria and east of St. Louis -- would see a 2.5
percent increase in electricity rates and a 14.5 percent
increase for the cost of natural gas.
Carol Howe lives in Lincoln and is an Ameren customer in the
former CILCO area.
"I'll have to buy not as much ice cream, but I think I could
handle it. I'm not sure other people could. I've got some friends
who literally live hand-to-mouth," she said.
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Originally, Ameren was asking for $110 million from rate
increases, but has since dropped that figure to about $90 million.
Jacqueline Voiles, director of regulatory affairs for Ameren
Illinois, said the influx of money is needed to upgrade
infrastructure for the delivery of gas and electricity and to help
replace an aging vehicle fleet. Any upgrades would create a more
consistent delivery of electricity and natural gas to customers, she
said.
"There's really no good time to ask for a rate increase, but we
continue to see costs increase, and there's only so much we can do
if we try to cut costs and contain our costs," Voiles said.
The ICC will review Ameren's request during the next four months
and will determine whether the company can increase rates, either by
what the company requested or by a lower number set by the ICC. The
commission also could deny Ameren's rate-increase request.
Last year, Ameren was awarded a $43.7 million total rate increase
after initially asking for $162 million.
Residents can estimate their specific rate increases at
http://www.illinoisratefacts.com/.
[Illinois
Statehouse News; By ANDREW THOMASON]
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