Judge recommends Ameren spread rate increases
by Mike Riopell, Bloomington Pantagraph
Feb. 25, 2010—Ameren wouldn’t get to raise its natural gas and electric rates for Illinois customers nearly as much as it wanted under a key recommendation filed Thursday.

A judge that presided over Ameren’s bid to increase rates recommended the utility spread out $56 million in increases among its power and gas customers.

Ameren asked for $130 million.

“This amount will not allow us to provide the service our customers expect,” said Ameren spokesman Leigh Morris.

The 317-page proposal released Thursday suggests Ameren actually lower natural gas delivery rates for two of its three utilities. Electricity delivery rates would go up for all three.

Now, the Illinois Commerce Commission will review Administrative Law Judge John D. Albers’ report and make a final decision by the end of April. Only then would any rate changes kick in.

Even though Ameren was disappointed by the recommendation, some consumer advocates were, too.

“It’s a step in the right direction,” Citizens Utility Board Director David Kolata said of the decision. “But it doesn’t go nearly far enough.”

And AARP argued the judge’s suggestion to reduce the increase shows Ameren’s proposal was “excessive.”

State Rep. Bob Flider, D-Mount Zion, said he was happy to see a proposed reduction in natural gas rates but said electricity rate hikes are problematic.

“I hope the commission still takes a closer look at this,” Flider said.

Because the lengthy report was just released, the specifics of how individual customers would fare under the judge’s proposal are still unclear.

However, Ameren has set up a Web site at www.Illinoisratefacts.com that shows people how their rates would change under their $130 million proposal.

Now that the judge’s report is complete, Ameren and organizations interested in the case can file additional arguments in a final effort to sway the Commerce Commission’s decision.

“We will file our response once we complete this review,” Ameren’s Morris said.

The full report can be found at: http://www.icc.illinois.gov/docket/files.aspx?no09-0306&docId147212.