Wednesday, February 13, 2008 4:54 PM CST
Ameren rate hike considered by Illinois Commerce Commission
By CHRIS LUSVARDI, Staff Writer
clusvardi@herald-review.com
DECATUR — Concerned utility customers called on the Illinois Commerce Commission on Monday to reject an Ameren Illinois proposal to raise utility rates during a public meeting at the Decatur Civic Center.
The utility company, including AmerenIP, AmerenCIPS and AmerenCILCO, hopes to increase its revenue $247 million by charging customers more for delivering power and gas, the portion of the bill where the utilities make their profit.
Most of those who attended the meeting weren’t pleased to hear their bills might go up again, expressing frustration at what they see as another in recent a series of unfair rate increases.
“I was shocked when I found out they were coming back for more,” said Betty Conover. “I don’t think they deserve it, and I hope they don’t get it.”
Charles Jacobs of Moweaqua said people he has talked to have had to make choices about whether to pay power bills or take medicine.
“This proposed rate increase is simply unattainable for people on fixed incomes,” Jacobs said.
State lawmakers echoed the customers’ sentiments.
“I’m not against power companies making profits, but the profits must be made fairly,” said state Rep. Bob Flider, D-Mount Zion, who handed over to the commission petitions containing 1,600 signatures of people opposed to the increase. “I have no doubt Ameren’s costs are increasing, but everybody’s costs are increasing. It will cause undue suffering for the people of Central Illinois.”
Ameren officials explained during a PowerPoint presentation why they see the increases as necessary.
“We carefully weighed our options before filing these rate cases,” said Craig Nelson, Ameren’s vice president of regulatory affairs and financial services. “We truly think it’s in the best interest of our customers to have this increase.”
AmerenIP customers would see increases that would amount to $7.75 a month on electric bills and $8.67 for gas delivery, Nelson said. All-electric customers would pay $11.33 more on average on their bills, Nelson said.
Nelson said AmerenIP increases would be the highest of the companies’ Illinois utilities because of higher operation and maintenance costs in the area.
Coming on the heels of a $488 million rate relief package approved in the legislature last year, state Rep. Bill Mitchell and other customers weren’t buying into Ameren’s new proposal.
“Deregulation hasn’t worked and it’s costing you the consumer,” said Mitchell, a Forsyth Republican. “The rate relief turned out to be too little and too late.”
Gary Mathias of Macon said, “The only reason they’re asking for a rate increase is because they can.”
More than 100 people attended the meeting, including a group of AARP members. With the cold weather and threat of snow, many of those who spoke said they knew more people who would have come had the weather been nicer.
“They’ve lost confidence,” Mathias said. “They don’t think they will make any difference.”
Bernie Hart added that she was sorry it was such a cold night. She lives with her sister and brother-in-law, yet still has found power bills hard to take.
“If this rate increase goes in, it is just one more thing that digs in our pocket,” Hart said.
The ICC held the meeting to gather information for its commissioners to consider when deciding whether to approve the increase. It is one of six similar meetings being held around the state this month as part of the approval process.
All testimony and written statements taken at the meetings will be given to the commissioners to consider.
The commission’s decision is due by Sept. 30, said Robert Bensko, the ICC official presiding over the meeting. If they don’t issue a decision by that date, Bensko said the increase would automatically go into effect. However, he added that the commission usually acts on rate increase proposals.
Customers at the meeting urged the commission to reject the proposal.
“It’s hard to put aside money for things you want to do,” said Debra Sansom of Decatur. “No one should be penalized for trying to make ends meet.”
Chris Lusvardi can be reached at clusvardi@herald-review.com or 421-7972.
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medic57 wrote on Feb 13, 2008 9:26 AM: