Ameren Rate Increase in Illinois - Electricity and Gas Hike

Ameren Illinois, a leading electric and gas delivery company in the state, has submitted proposals for electric and gas rate hikes.

The proposals include a $160.4 million gas rate increase over one year and a four-year $435.6 million increase in electric rates, which will be reviewed by the Illinois Commerce Commission. The requests are due to various factors, such as the Climate and Equitable Jobs Act, which aims to make the state's energy sources 100% carbon-free by 2050. This act requires electric utility companies to file a multi-year integrated grid plan with the ICC. The plan will help Ameren maintain the stability of its grid during severe weather conditions and transition to clean energy.

However, the citizens Utility Board and other groups are concerned about the high rates, especially after a monthly increase of $52 for the average Ameren customer last year.

The reasons for the rate increases include supply and demand challenges, the COVID-19 pandemic, the war in Ukraine, and the requirement to shut down coal-powered facilities in the state. Ameren expects to see a 25% increase in energy costs for customers this winter. The company serves 1.2 million electric and 816,000 natural gas customers in central and southern Illinois.

According to their website, Ameren covers three-quarters of the state and serves 1.2 million electric and 816,000 natural gas customers in central and southern Illinois.

A customer's bill covers supply and delivery costs, but Ameren claims that they do not profit from the increased rates. According to the company's documents, the cost of energy makes up less than half of the typical monthly bill.

The CUB, a non-partisan non-profit organization, has opposed the rate hikes and will challenge every penny that Ameren cannot justify.

“This is awful news for Ameren customers who already were suffering under some of the highest electric and gas supply prices in Illinois history as well as earlier Ameren rate hikes,” said CUB Executive Director, David Kolata.

The 11-month ICC review process, including public comment, will conclude in December.

The state of Illinois provides a low-income home energy assistance program to help households struggling with their utility bills, with eligible customers able to apply until May 31 or until funding runs out.