PSC rejects Ameren request to clarify rules

JEFFERSON CITY, Mo. -- Missouri utility regulators decided Wednesday to not wade into a dispute between AmerenUE and a group that has organized opposition to a proposed increase in electric rates.

St. Louis-based AmerenUE wanted the Public Service Commission to clarify the kinds of public relations activities allowed during utility rate cases after a group called the Fair Electricity Rate Action Fund has urged consumers to speak out against AmerenUE's request for an 18 percent rate increase.

Commissioners voted 4-1 to deny the utility's request to clarify their existing rules and urged AmerenUE to file a complaint if it believed someone had violated a specific rule. Regulators said they will continue to monitor the activities of those associated with the rate case.

The rule at issue states: "It is improper for any person interested in a case before the commission to attempt to sway the judgment of the commission by undertaking, directly or indirectly, outside the hearing process to bring pressure or influence to bear upon the commission, its staff or the presiding officer."

A spokesman for AmerenUE said the utility was not seeking to stifle debate and wanted to better understand what kind of public outreach was permitted during rate cases.

Critics of the utility's request had argued in a filing with the Public Service Commission that regulators didn't have the authority to issue broad pronouncements without a formal rule-making process. Critics also raised free speech concerns.

The Fair Electricity Rate Action Fund is a coalition of business and senior groups that has tussled previously with Ameren.

Last year, the action fund organized public resistance to proposed legislation favored by Ameren that would have allowed it to charge electric customers sooner for the cost of building new power plants. This year, the action fund has urged consumers to attend public hearings about the proposed rate increase by running radio ads and placing automated phone calls.

Gregg Keller, a spokesman for the action fund, praised regulators' decision to reject AmerenUE's request.

"We're pleased that the dedicated public servants of the Missouri Public Service Commission have ruled we can continue to educate Missourians on the ... increase currently moving its way through Jefferson City," Keller said.

Commissioner Jeff Davis, who voted against the denial, said regulators should investigate to learn more about the Fair Electricity Rate Action Fund.

"We have transparency where Ameren is concerned, we do not have transparency where these other parties are concerned," Davis said. "It certainly gives the appearance that there is an influence either directly or indirectly."

Attendance at local public hearings has exploded for the current rate case. Electric customers have pointedly questioned AmerenUE leaders and regulators. Dozens of witnesses have testified for hours before regulators.

The Public Service Commission estimates that more than 800 people have attended four public hearings for the current rate case. In September 2008 for Ameren's last case, about 100 people attended 14 hearings.

Regulators' rejection of AmerenUE's clarification request came Wednesday morning after a long night of public testimony Tuesday at the commission's headquarters in Jefferson City.

Numerous witnesses warned of dire consequences that could result from higher electric rates and many people wore yellow stickers opposing the rate increase with the Fair Electricity Rate Action Fund's name on them. Several people who attended said they came after receiving a phone call telling them about the hearing.

AmerenUE has said it needs to increase electricity rates to pay for efforts to improve power reliability, cover higher fuel costs and make up for less sales outside the utility's system.

The utility serves about 1.2 million customers in Missouri and is a subsidiary of Ameren Corp., which provides electricity and natural gas in Missouri and Illinois.