Legislator slams Ameren’s $207 million rate-hike request, tells regulators:
‘The increase should be zero.’
Tuesday, September 16, 2008—State Rep. John E. Bradley of Marion on Tuesday urged the Illinois Commerce Commission (ICC) to wipe out Ameren’s proposed $207 million rate increase when it decides on the company’s request in about a week.

“I am against any increase of any amount,” Bradley said in prepared remarks before the ICC. “I believe the increase should be zero.”

The ICC is expected to announce a decision on Sept. 24.

Ameren’s latest request first came in 2007, just months after the Illinois General Assembly and Gov. Rod Blagojevich forced the utility to agree to a settlement package that abolished the company’s new “reverse-auction” power-pricing system and gave consumers about $1 billion in refunds.

“Ameren is leading you, leading all of us down the same path as two years ago.”
The huge electric-bill increases—more than 200 percent in some cases—resulting from the Ameren’s auction system led to widespread anger throughout Illinois last year, and Bradley’s fiery speeches helped ignite that rate-hike rebellion.

Most of last year’s increase was connected to the cost of the actual electricity, but part of it also was connected to a $100 million increase in the rates the Ameren utilities charged to deliver power to customers’ homes. That’s why consumer advocates were disappointed at Ameren’s new $207 million “delivery” rate-hike request.

After the Illinois Attorney General’s office, CUB, and the ICC staff all recommended big cuts in Ameren’s rate-hike request, three of the ICC’s Administrative Law Judges (ALJ) recommended that Ameren get a $163 million increase. Bradley doesn’t agree.

“I believe your staff had the best and most extensive opportunity to review this matter, and should be given more weight than the ALJ(s),” Bradley said. “The staff recommendation is more in line with reality than the recent administrative finding.”

Bradley also called for more clarity regarding the impact the rate hike would have on individual customers, rather than just providing averages. He said in the past, Ameren has provided “fuzzy information,” which sparked anger among customers.

“Ameren is leading you, leading all of us down the same path as two years ago,” Bradley said. “You would think that they would have learned their lesson, they obviously haven’t.”

He ended with a plea to the ICC. “Commissioners, this is your chance. Please stop the increase. Please stop it now,” Bradley said.