 Downstate Illinois' largest utility has filed the paperwork with the
Illinois Commerce Commission for more than $100 million in delivery
rate increases. Ameren is asking for $51 million in what it calls
"cost recovery" for natural gas delivery service and another $60
million in cost recovery for its electric delivery service.
Ameren officials said in a statement that the rate increases are
necessary. Delivery rate charges make up about 30 percent of monthly
utility bills.
"We are sensitive to the impact that any delivery service rate
increase may have on our customers," said Craig Nelson, senior vice
president of Ameren Illinois. "However, we must have the financial
ability to provide a safe and reliable energy delivery system that
will accommodate future economic growth and development."
The Commerce Commission will begin what can be a long process of
review. Both the ICC and Ameren expect it will be at least 11 months
before anything is decided. The utility said it will be at least
2012 before customers would see the new, higher rates.
But Ameren customers just saw their power bills go up. The ICC OK'd
a $4 million rate increase for Ameren electric customers last April.
The company wanted $160 million, but Illinois regulators said Ameren
could not make the case for such a large increase.
And consumer watchdogs and lawmakers are not sure the utility will be
able to make the case this year, either.
State Rep. John Bradley, D-Marion, said he can't support Ameren's
request.
"This company is doing pretty well," said Bradley "This is not a
situation where the money will end up with employees or
infrastructure. This looks like it's going to go straight to
bottom-line profit."
Bradley was one of the key players in the 2007 settlement between
Illinois and its major utilities. He is quick to say that many
people, particularly in southern Illinois, still remember the
shockingly high electric bills they received after the state's
electric rate freeze expired.
The Citizens Utility Board remembers the hot summer of '07 as well.
And Dave Kolata, who works with the watchdog group, said they also
remember Ameren's case for a rate hike last time around. He said not
much could have changed since then.
"I think consumers have reason to be skeptical about this rate hike
request. The bottom line is Ameren's Illinois profits have doubled
over the last year. This is a corporation that is doing very well
overall," said Kolata.
But Ameren is not the only Illinois utility asking for more. A
number of others, including the Chicago-area's largest electricity
provider, Commonwealth Edison Co., have either asked the ICC or the
General Assembly for permission to increase rates. Kolata said
that's not gone unnoticed.
"It's like open season on consumers," he said. "We haven't seen this
type of activity in a long time. It seems like there are rate
increase requests coming from left, right and center."
If there is something going on, state Sen. John O. Jones, R-Mount
Vernon, wants to know.
[to top of second column] |
"Are the generation plants costing them more money?" Jones asked.
"Are they paying more money to get the electricity to pass on to the
consumer? What is going on? Is there something out there driving up
their costs that we aren't being told?"
Jones said that until he hears a good reason from Ameren, he cannot
support a rate increase.
"It's something that the (ICC) is going to really have to take a
serious look at. And if they approve a rate increase, it would
surprise me at this point and time," said Jones
Attorney General Lisa Madigan on Friday came out against Ameren's
hike request..
"Ameren's last rate case ended just a few months ago. The companies
had rate increases in 2008 and 2010. Asking consumers to bear yet
another increase is something we will investigate thoroughly,"
Madigan representative Robyn Ziegler wrote in an e-mail to Illinois
Statehouse News. "The Attorney General's office will do everything
we can to protect Ameren customers from these relentless requests
for rate increases. This latest demand for higher rates is even more
disturbing given the fact that they are currently seeking
legislation in the Illinois General Assembly that would allow
automatic annual rate increases going forward."
Ameren Illinois delivered its rate request and support documents to
the Illinois Commerce Commission headquarters in Springfield on
Friday.
[Illinois
Statehouse News; By BENJAMIN YOUNT]
 |
