|
Although delivery rates will vary for customers in each Ameren
service area, all natural gas customers will see a reduction in
delivery rates as a result of the ICC order.
AmerenIllinois filed a request with the ICC in June 2009, seeking
authorization to increase annual revenue by $226 million. Over the
course of the commission's review, the company reduced its revenue
request to $130 million and then revised it once again to $162
million. The commission's decision will allow Ameren Illinois to
collect $4.75 million in additional annual revenue through rates
charged by AmerenCILCO, AmerenIP and AmerenCIPS for delivery of
natural gas and electricity to customers.
Acting ICC Chairman Manuel Flores said the commission's order "is
a product of a careful and thorough analysis of Ameren's rate
request and evidence submitted by all parties to the case.
"Our decision limits cost increases for Illinois families and
businesses while allowing Ameren to maintain effective and reliable
service," he said.
Delivery service charges account for about 30 percent of a
typical residential customer's bill. The average increase in
delivery costs for CILCO electric customers is estimated to be
approximately 1.2 percent. CILCO gas customers will see a reduction
in rates of approximately 12 percent.
The average increase in delivery rates for CIPS electric
customers is estimated to be approximately 7.6 percent. CIPS gas
customers will see a reduction in rates of approximately 4 percent.
The average increase in delivery costs for IP electric customers
is approximately 3.1 percent. IP gas customers will see a reduction
of approximately 8.5 percent.
In its order, the commission made adjustments and reductions in
areas ranging from operations and maintenance to rate of return. The
largest reductions to the company's request were in cash working
capital, accumulated depreciation, administrative and operations
budgets, rate of return, plant additions, material and supplies,
employee benefits, and incentive compensation.
The commission's decision follows an 11-month financial review of
the company proposal, thousands of pages of evidence, lengthy legal
pleadings and an oral argument before the commission. In addition to
the formal hearings, public hearings were held in Springfield,
Collinsville, Pekin and Decatur. Public comments were transcribed
and made available to all parties on the commission's electronic
docketing system. More than 1,800 public comments were submitted
from public hearings, the ICC's public comment website, through a
toll-free telephone number and the mail.
The company request and the commission-approved revenue are as
follows:
AmerenCILCO:
[to top of second column] |
AmerenCIPS:
AmerenIP:
The commission also adopted a return on equity and a rate of
return for each gas and electric company. They are:
AmerenCILCO:
-
Electric -- rate
of return, 8.05 percent; return on equity, 9.90 percent
-
Natural gas -- rate of return, 7.83
percent; return on equity, 9.40 percent
AmerenCIPS:
-
Electric -- rate
of return, 8.02 percent; return on equity, 10.06 percent
-
Natural gas -- rate of return, 7.59
percent; return on equity, 9.19 percent
AmerenIP:
-
Electric -- rate
of return, 8.97 percent; return on equity, 10.26 percent
-
Natural gas -- rate of return, 8.59
percent; return on equity, 9.40 percent
Ameren Illinois was directed to file new tariffs for each
company, reflecting the changes the commission made to its proposal.
ICC staff will review those tariffs to ensure they comply with the
commission's order. New rates are expected to go into effect by
early May.
[Text from
Illinois Commerce Commission
file] |
