Ameren customers recently received terrible news: Power prices will skyrocket June 1.
It’s all because of an exponential increase in capacity costs—what consumers pay to ensure power plants are able to deliver electricity on the highest-demand days of the year. The average household could see electric bills rise by as much as $150 annually because of the change, according to Crain’s Chicago Business.
Ameren (the utility) isn’t a power generator so it doesn’t profit off these supply rates. This hike is tied to significant flaws in the way electricity prices are set in Illinois—and the big power generators are laughing all the way to the bank. (For more information, read CUB’s FAQ about the rate hikes.)
“Illinois has a surplus of electricity, so the fact that Ameren customers might have to pay skyrocketing power rates on June 1 raises serious questions,” CUB Executive Director David Kolata said. “This is another sign that the electricity market is not working for Illinois consumers, and we need to get to the bottom of it.”
We can’t afford this nonsense. Please send a message to the Federal Energy Regulatory Commission today: Investigate these insane rate hikes!
This hike will not affect customers enrolled with an alternative supplier, including those who get their electricity through community power deals. But Ameren supply customers, those who have a variable rate plan with an alternative supplier, and those who are negotiating new supplier deals can expect to see much higher rates come June 1. Stay tuned to the WatchBlog for updates.
