Ameren seeks increase in electric, gas rates

Ameren, the electric and natural-gas utility that powers much of Missouri, including Cape Girardeau, has filed a rate case with the Missouri Public Service Commission (PSC), seeking a $206 million increase in revenue.

According to the rate-case paperwork filed July 1, the rate is driven by the need for investment in the company’s generation and energy-delivery systems.

“Since our last filing, we’ve invested nearly $1.4 billion in infrastructure, and that’s the primary driver,” said Warren Wood, vice president for external affairs and communications for Ameren.

But the utility also is coping with the loss of Noranda Aluminum Inc. Wood said Noranda kept utility rates low for everyone because the company used a significant amount of energy.

“Now we’ve lost that benefit, since they’re largely off the system now,” he said.

Ameren last sought an increase two years ago, when officials requested a 9.7 percent increase and were granted a 4.9 percent increase by the PSC.

The current rate case requests a 7.8 percent increase overall, though in the customer breakdown, residential customers would see an average annual increase of 8.29 percent, or $99 per year.

“It comes to about $8 to $9 per month,” Wood said.

The rate increase would affect 1,260,609 Ameren Missouri customers, which includes 1,048,075 residential customers, according to the rate-case filing.

Ameren has sought rate increases seven times over the last decade.

Wood said before 2007, the rate increases were fewer and further between.

But aging infrastructure and flat or declining growth has been an issue for all electric-service providers in Missouri, and every one of them is either just finishing or in the middle of a rate review, Wood said.

The review process, Wood said, will include considerable audits of Ameren’s files and finances.

“The public can expect OPC will vigorously prosecute any aspects of this matter not in their best interests,” the Office of Public Counsel (OPC) said in an official statement.

OPC officials said the office will scrutinize many aspects of the filing before reaching a decision, including Ameren’s customer-service charge.

“Ameren maintains they are seeking to maintain the current $8.00 customer charge for residential ratepayers,” the OPC said in the statement. “But this does not include a newly proposed ‘system-access charge’ that will push the monthly charge to over $12.89.”

Ameren is not seeking an expedited review of the filing, a fact the OPC applauds because it will give the office and interested parties ample time to review the request.

“This will also give us a chance to work with Ameren on issues that we do believe benefit the public at large,” the OPC said.

Ameren anticipates a decision from the PSC regarding the current rate case in April.

bbrown@semissourian.com

(573) 388-3630