Statement by CUB Executive Director David Kolata Alerting Ameren Illinois Customers to Proposed Gas Rate Hike
FOR IMMEDIATE RELEASE: March 2, 2020
CONTACT: Jim Chilsen (o) 312-263-4282, (c) 312-513-1784
STATEMENT BY CUB EXECUTIVE DIRECTOR DAVID KOLATA ALERTING AMEREN ILLINOIS CUSTOMERS TO PROPOSED GAS RATE HIKE
Ameren Illinois has filed a $102 million natural gas rate increase before the Illinois Commerce Commission (ICC). The Citizens Utility Board (CUB) is still reviewing the utility’s request, but Ameren’s high 10.5 percent profit rate for its shareholders is of immediate concern. A rate hike is always bad news for consumers—especially one that would hit in the middle of next winter. CUB’s legal team will fight every penny the company can’t justify.
*On Feb. 21, Ameren requested a $102.031 million natural gas rate hike.
*The company is requesting a 10.5 percent Return on Equity (ROE), or profit rate for shareholders. Ameren’s current ROE is 9.87 percent.
*This increase would impact delivery rates, which take up about a third to a half of gas bills. Delivery charges cover the costs of delivering gas to homes—plus a profit.
*The Illinois Commerce Commission (ICC) will consider this rate-hike proposal over an 11-month case. Any rate hike would take effect in early 2021.
CUB is Illinois’ leading nonprofit utility watchdog. Created by the Illinois Legislature, CUB opened its doors in 1984 to represent the interests of residential and small-business utility customers. Since then, it has saved consumers more than $20 billion by helping block rate hikes, secure refunds, and fight for clean, low-cost energy. For more information, call CUB’s Consumer Hotline, 1-800-669-5556, or visit its award-winning website, www.CitizensUtilityBoard.org.