Lower taxes are good for Ameren Missouri's customers

An opinion article by Cape Girardeau County Assessor Bob Adams ("Ameren trying to game system, forgo $20M in taxes owed," Aug. 11) contained factual inaccuracies. Although I won't detail every incorrect claim, the important points for local readers to know are:

• Lower taxes are good. One reason is because overpaying gas taxes that are improperly assessed hurts Ameren Missouri customers. In short, higher gas taxes not fairly assessed means higher rates because taxes are pass-through costs paid by our customers.
• Following tax guidelines helps Ameren Missouri customers. In properly following tax guidelines for depreciation by gas utilities, Ameren Missouri helps keep gas rates lower. It's also important to note application of the state tax rules does not affect our earnings. This is about tax fairness and protecting our customers from unnecessary cost increases.

As another example of how lower taxes are helping our customers in Southeast Missouri, I wanted to note that our electric customers saw their base electric rates decrease by 6 percent on Aug. 1. That amounts to a $167 million rate cut, thanks to federal tax reductions passed by the U.S. Congress in December. The rate cut is the first benefit customers will receive as part of Ameren Missouri's Smart Energy Plan, made possible by the new consumer-friendly energy law (SB 564) that had support from customers, businesses and more than 85 percent of the Missouri General Assembly. Also as part of the bipartisan legislation, base electric rates for all Missouri customers are by law frozen until April 2020.

In the months ahead, we look forward to a hearing conducted by the State Tax Commission and a final resolution that will determine the appropriate tax amount. This issue is ultimately about keeping our rates lower for all our customers based on Ameren adhering to the rules for how assets should be appraised.

In closing, I'd ask readers: Would you overpay your taxes? Most people would not. Nor does Ameren Missouri, because it would cost our customers more.

Russell Burger is the director of the SEMO Division for Ameren Missouri.