Ameren Illinois’ $128.8 million rate hike request for natural gas delivery services should be cut by $43.7 million, according to an advisory ruling from two state judges.
The final decision will be left to the Illinois Commerce Commission, which is expected to make a ruling by Dec. 1 in the case. However, consumer advocates are celebrating the judge’s recommendation and hoping the commission cuts the request even further.
“For the sake of Ameren’s customers, who have suffered through one gas rate hike after another, we urge the Illinois Commerce Commission to go far beyond the proposed order — and slash Ameren’s money grab,” said Jim Chilsen with the Citizens Utility Board on a call with reporters on Thursday.
The proposal amounts to Ameren’s fourth rate hike request since 2018, according to consumer advocates. Ameren serves more than 800,000 customers in downstate Illinois, according to the utility provider whose Illinois operations are based in Collinsville.
Originally, Ameren Illinois requested a $134 million rate hike earlier this year. The utility company has since whittled that down to $128.8 million. The proposal would amount to a 13% increase, or $10 per month, the consumer advocates said.
The request would help pay for Ameren’s delivery of gas to customers, but it would not increase the price that customers pay for the natural gas.
"The investments we have proposed in our reliability plan will enable us to meet strict federal pipeline safety requirements, reduce leaks, and provide reliable and affordable natural gas to our residential and business customers," Brad Kleoppel, a senior director of gas operations and technical services, said in a statement. "We evaluate all available methods to maintain compliance at the lowest possible cost based on operational feasibility and industry best practices."
To save customers money, Kleoppel also said Ameren Illinois purchases a majority of its natural gas in the summer when prices are typically lower and stores it to be used in colder months.
Two years ago, state regulators dramatically curtailed utility providers rate hike requests — including Ameren’s by 50.8%. Watchdog groups say they’re optimistic to see a similar result later this year.
"In the Metro-East region, families' utility bills have already risen by about $200,” Darnell Tingle, executive director of United Congregations of Metro-East, said in a statement. “People are being forced to choose between heating their homes and feeding their families. The proposed rate hike reduction is a start but it’s not enough. Ameren must do more.”
