ICC Approves Amended Ameren Grid Plan

 

[December 20, 2024]  Chicago, IL – Today, the Illinois Commerce Commission (ICC) approved Ameren Illinois’ refiled multi-year grid plan (2024-2027) with modifications. The Commission approved $356 million in investments and system improvements needed to strengthen power grid reliability and support the ongoing electrification of the state’s power system. The decision cut the utility’s proposed $1 billion in spending by approximately 66 percent.

The Climate and Equitable Jobs Act (CEJA) required the state’s largest investor-owned electric utilities to file grid plans designed to accelerate progress toward Illinois’ clean energy goals and hold electric companies accountable for their performance.

“After extensive review, the Commission is confident that both Ameren and ComEd have the tools necessary to make needed investments to drive the clean energy transition and continue modernizing Illinois’ electric grid. These plans are a key component to meeting the goals of CEJA and represent significant improvement in meeting its requirements,” said ICC Chairman Doug Scott. “The investments approved today will deliver significant benefits to the utilities’ customers in an affordable, cost-effective manner.”

Ameren was required to refile its grid plan earlier this year after the ICC rejected the utility’s initial proposal in 2023, finding the original plan failed to comply with several consumer affordability and cost effectiveness components of CEJA.

“Grid planning is not a one-time task. It is a dynamic, iterative process that will require continued refinement and adaptation in future grid plans,” said ICC Commissioner Stacey Paradis. “The grid of the future will be shaped by emerging technologies, evolving regulatory review, and changing energy demands. To meet these challenges, the utilities, ICC staff, advocacy groups, and other stakeholders must continue to work together.”

Ameren’s grid plan is consolidated with its multi-year rate plan (2024-2027) to determine which system maintenance and upgrade costs can be passed on to ratepayers at a reasonable cost. In accordance with the Public Utilities Act, these costs are only recoverable if the utility demonstrates they are reasonable and prudent.

The ICC’s decision reduced Ameren’s rate increase request by 7 percent for an overall increase of $309 million. It also approves a 8.715 percent return on equity (ROE) for the company, down from Ameren’s requested 9.27 percent ROE.

The impact of the decision on individual customers will vary based on service class and energy usage.

The ICC has issued its decision after closely scrutinizing Ameren’s refiled grid plan and additional materials submitted by the utility, ICC staff, and various intervenors over a nine-month legal proceeding, as well as multiple stakeholder workshops. Ameren was required by CEJA to conduct a robust, transparent stakeholder process in the design of its grid plan. In preparation for its refiled plan, the utility conducted over 30 hours of discussions with 15 different stakeholder organizations via various sessions and one-on-one discussions.

More information regarding Ameren’s multi-year integrated grid plan can be found in Dockets No. 22-0487/24-0238.

[Text received from ICC | Cayli Baker]