Ameren's rebate program for energy efficiency could end

ST. LOUIS -- An Ameren Missouri program that offers rebates for energy efficiency could shut down by the end of the year after state regulators rejected a plan to extend it for three years.

For the last three years, Ameren Missouri has offered several energy-saving programs under a state law that reimburses the utility for reducing its customers' energy use. A separate charge on customers' bills funds the programs, and Ameren uses the funds to cover lost sales and pay for rebates.

The Missouri Public Service Commission voted Thursday against continuing the program unless the utility develops a better method to measure electricity savings so it doesn't collect more than it needs to offset lower sales, The St. Louis Post-Dispatch reported.

"In order to approve a plan of this size, it is absolutely critical we have accurate (measurements) so that we can know with some degree of certainty what amount of savings, energy savings, are on the table," PSC chairman Daniel Hall said.

Ameren is not required to offer efficiency programs, and the utility wouldn't say whether it will try to renegotiate with the commission or will end the rebates. Ameren said in a statement it was "disappointed" with the commission's decision and was determining its next steps.

"The proposal we submitted is mutually beneficial to all stakeholders, including our customers, who rely on our energy-efficiency programs to better manage their energy usage and costs," Ameren Missouri president Michael Moehn said in a statement.

The program has caused conflict for several months between the utility and the Missouri Office of Public Counsel, which represents ratepayers, and the commission's staff.

Ameren argued subjecting the revenue to auditing and revision after it is collected would conflict with accounting rules. Public counsel Dustin Allison said he disagrees, but his office and the commission's staff have tried to work with Ameren to find a solution.

Hall said he was convinced Ameren recovered more money than needed to offset lost sales. The commission must ensure Ameren's efficiency program benefits all ratepayers by cutting the need for new power generation. Otherwise, only those who receive rebates benefit, while others pay for both efficiency and new power, he said.

Asked whether the vote derails negotiations, Allison said: "I think it's entirely up to Ameren at this point. From our standpoint, it does not."