Energy rates to increase by 30 percent for Ameren customers

Posted on June 2, 2015
Ameren Bill
Ameren customers in Southern and Central Illinois will see a 30% increase in fees this year. (WJBC File Photo)

By Andy Dahn

BLOOMINGTON – Residents in Southern and Central Illinois that receive power from Ameren will soon notice a 30-percent increase in electricity supply rates.

The price spike is due to a rise in capacity costs, which are what consumers pay to ensure power plants are able to deliver electricity on the highest-demand days of the year. The increase has left many wanting answers, including the Citizens Utility Board.

“Ameren isn’t making any money off of this increase, it’s really the power generators that are making a lot of money,” said CUB Communications Director Jim Chilsen. “And that’s a big concern of ours. So we’ve called on federal regulators to investigate this increase and find out what happened in the market to cause this huge increase.”

Chilsen said the numbers don’t add up.

“The power generators need to have enough capacity, meaning they need to be prepared for those high-demand days,” Chilsen said. “And these fees go to them. It’s something that’s wrapped into the supply prices. Well for whatever reason, the capacity auction in Illinois was nearly 50 times what it was in all these other states surrounding Illinois.”

Chilsen added that residents must now cut back on their energy use to save money.

“What it comes down to is that you can’t count on the markets to lower your electric bill,” said Chilsen. “You have to take matters into your own hands by practicing energy efficiency. That’s the most reliable to cut your power bill.”

Some ways Chilsen suggested cutting back were cleaning air conditioning filters, turning off the A/C when leaving the home, and replacing air conditioners with fans. It is estimated that average Ameren customers on the company’s supply rates could pay more than $130 extra over the next year. The new prices will last through September of this year.

Ameren Illinois officials said they have had ongoing conversations with Midcontinent Independent System Services, or ISO, to express concern with the increase and the impact on Ameren customers

“In our discussions with MISO, they have confirmed they will provide an $83.86 million refund to downstate Illinois customers for the over collection of capacity costs,” stated Ameren Illinois President Richard Mark.
“Ameren Illinois intends to monitor the $83.86 million refund process. We will continue to work with MISO to review and refine the capacity auction rules so that capacity can be provided at the lowest possible cost to Ameren Illinois customers.”

 

Andy Dahn can be reached at [email protected].

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