State Regulators Approve Higher Rates for Ameren For 2016
Delivery rates will be going up in January for Ameren gas and electricity customers in Illinois. The Illinois Commerce Commission approved the increases on Wednesday, granting Ameren slightly less than what it had requested.
They’ve been granted an 11.44% increase for electric delivery rates --- which Ameren says will add $2 to $7 to the average monthly residential bill, and a 12.44% increase for natural gas delivery rates, or a $2 to $6 monthly increase. The increase will vary according to which of Ameren's three Illinois service zones a customer lives in. The zones follow the territories of the old Illinois Power, CILCO and CIPS utilities, all of which have been aquired by Ameren.
Delivery rates are what utility companies charge for delivering gas and electricity to their customers, separate from the charge for the energy itself. Ameren says the delivery charge is the smaller part of the utility bill. The Citizens Utility Board, a watchdog group for Illinois utility customers, says the delivery rate can take up about a third to a half of a bill.
Ameren emphasizes the improvements the rate increases will pay for, as directed under state laws outlining multi-year infrastructure improvement programs for both electric and natural gas utilities. Improvements include stronger electric utility poles and power lines, outage detection technology and new, higher-capacity gas pipelines.
Rate changes under these laws don't always lead to increases. On the same day it granted rate increases for Ameren, the Illinoic Commerce Commission approved a $66.5 million decrease in electric delivery rates for ComEd, which had requested a $50.5 million decrease.
Those improvements can’t come fast enough for the Citizens Utility Board. But while the rate increases are slightly less than what Ameren request, the watchdog group for Illinois utility customers says Ameren got more than it needed or deserved from the ICC.
“And that’s we’re filing a petition for rehearing," said CUB spokesman Jim Chilsen. "We think that the company can continue to make upgrades and maintain its system, without charging customers as much money.”
CUB has 30 days to file its petition challenging the new delivery rates.