PSC WAYS PUBLIC INPUT WILL HAVE BEARING ON RATE

If the decision belonged to AmerenUE customers in Cape Girardeau, the company could forget it proposed 20 percent rate increase for natural-gas service.

About 45 people last week attended a hearing on AmerenUE's proposal held by the Missouri Public Service Commission, which will ultimately decide the issue. As could be expected, no customers at the hearing supported taking more money out of their own pockets and giving it to the company.

The high level of public interest isn't limited to Cape Girardeau. Similar hearings throughout the state were also well attended, including the one in Columbia, Mo., Monday that drew more than 100 citizens. The response to the company's proposal in other communities was about the same.

The PSC will decide the issue sometime before the end of the year. A commission spokesman says the panel will weigh all of the evidence, including the company's financial records and public opinion. The spokesman says an increase isn't automatic. Sometimes requests for rate increases actually result in rate reductions based on the evidence.

That isn't likely in this case. Although AmerenUE's request would increase revenue by $12 million, the PSC staff has suggested a much smaller increase that would bring the company an additional $2.8 million. In the end, some rate hike is likely, but the public's views on the matter will be a factor.