Ameren Files for New Electric Delivery Rates
Ameren is disputing news reports that its latest filing for electric delivery rates in Illinois amounts to a rate hike.
But spokesman Leigh Morris said some customers would see an increase in delivery rates, but not others. He says this is the first rate application Ameren is seeking in connection with an upgrade of the electric grid --- and he said it's based on a new formula that accepts a lower return on equity and accounts for lower interest rates.
"This is based on actual spending," Morris said. "There's not forecasting involved with this. And this rate case will result in an overall reduction of approximately $19 million. That's an annual number."
However, Morris said customers in Ameren Illinois' Rate Zone Two - the former CILCO territory - will see an increase in rates. He said the other two zones, which serve former Illinois Power and CIPS customers, would see modest decreases in their rates.
But a spokesman with the Citizens Utility Board said there's more to the latest Ameren rate case than an initial change in rates. Jim Chilsen said the Ameren filing also sets the stage for Ameren's rate structure throughout the rollout of the improved electrical grid.
"Consumer advocates need to get involved, and need to make sure that Ameren is sticking to the law and that Ameren is being fair to consumers," Chilsen said. "And this is one of the biggest cases that we'll ever deal with, because it's determining what this formula will be that will determine rates for up to the next decade."
Morris said the rate filing with the Illinois Commerce Commission replaces a rate hike request filed last February. The new filing covers the first $17 million of what will eventually be $625 million in electric grid improvements over the next decade. If approved, the new rates should take effect in October.
Morris said consumers will be able to learn how the rate request would affect their personal electric bills starting Feb. 1. He said Ameren customers will be able to use the online rate estimator at IllinoisRateFaces.com, or call Ameren Customer Service at 1-800-755-5000.