AmerenUE, which provides electricity and natural gas to 1.2 million customers in Missouri, has filed a request with the Missouri Public Service Commission for its first electric-rate increase since 1987 and for an increase in natural-gas delivery charges. If both requests are approved, Ameren would see its annual revenue go up more than $370 million.
Ameren says the electric-rate increase is needed because the price of coal, used to generate 80 percent of the company's electricity, is rapidly increasing, and because the company anticipates it will spend $1 billion over the next 10 years to meet EPA emission standards.
Ameren's net income in 2005 was $606 million, up 14 percent from 2004.
The Missouri Public Service Commission ensures "that Missourians receive safe and reliable utility services at just, reasonable and affordable rates." Missouri's public counsel, a separate part of state government, is the consumer advocate in such cases.
Buzzi Unicem USA, which produces cement and is the largest consumer of electricity in Cape Girardeau, says its bill could go up as much as $240,000 during peak months.
Ameren's says its rate request is not tied to costs -- perhaps more than $70 million -- associated with the failure of the dam at the utility's Taum Sauk Reservoir last year. It will be up tot he PSC and public counsel to make sure they aren't.
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