(WAND) — Ameren won’t be receiving the full rate hike it expected.
The Illinois Commerce Commission (ICC) has disallowed $36.34 million to Ameren Illinois’ rate request for its natural gas delivery services in Illinois.
“Ameren customers, over the past couple of years, have been raked over the coals by high gas bills. So we never like to see higher rates, especially at the hands of Ameren which has been rolling in high profits,” Jim Chilsen, Director of Communications for the Citizen’s Utility Board explained.
The decision is around 50 percent lower than Ameren’s initial request for a $71.57 million increase.
“The Illinois Commerce Commission today sent a message to Ameren and other gas utilities in the state — it’s no more business as usual,” Chilsen added.
The ICC has issued its decision after closely scrutinizing Ameren’s rate case filings and additional materials submitted by the utility, Commission Staff, and various interveners over an 11-month legal proceeding.
The process aims to ensure the utility receives the necessary funds to provide safe and reliable service to customers and to maintain and replace aging infrastructure at a reasonable cost to ratepayers. In accordance with the Illinois Public Utilities Act, these costs are only recoverable if a utility demonstrates they are reasonable and prudent.
“Ameren was pushing for an excessive profit rate for shareholders. It was trying to get more profits by raising customer rates, and the ICC today said ‘no you’re not going to do that,'” Chilsen explained.
The decision initiates a two-step future of gas proceeding that includes a detailed action plan for the utility’s future infrastructure investments to evaluate the impacts of Illinois’ decarbonization and electrification goals on the natural gas system.
“We have to start this process, a long term process, of moving people to cleaner, cheaper way to heat their homes,” Chilsen added.
The decision also establishes a new low-income discount rate for eligible customers whose incomes are up to 300 percent of the Federal Poverty Level (FPL). The rate will offer a five-75 percent monthly total bill credit for qualifying customers beginning October 1, 2024. Customers already enrolled in the state’s Low-Income Home Energy Assistance Program (LIHEAP) will automatically qualify for the newly-established low-income discount rate.


