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Crowd opposed to Ameren rate hike

Posted February 19, 2008 10:00 pm

Michael Smothers

Another energy cost increase for central Illinois residents this year will help prevent more hikes in the future, a top official with the utility argued at a public hearing Tuesday night.

Peoria-area AmerenCILCO customers, for that matter, would see not only the lowest "delivery rate" increase among those proposed for downstate Illinois, their natural gas costs will decline, the official said.

It didn't matter, however, what arguments Craig Nelson, vice president for Ameren Illinois Utilities, made from the Woodruff High School auditorium stage.

One after another, speakers representing advocacy groups or just themselves rose in opposition to the proposed increases before an Illinois Commerce Commission hearing officer.

Under Ameren's proposals, average AmerenCILCO customers would see their electricity bills rise about $35 a year but their natural gas bills drop about $16 annually. AmerenCIPS and AmerenIP customers would see higher increases in both.

Perhaps privately owned Ameren has the right to make a fair profit as the only provider available in the now-deregulated energy business, but it shouldn't get greedy, said Ila Minson of rural Hopedale.

"Obviously, they're like the little boy in a candy store," she told the hearing officer. "We're not asking you to deprive them of the candy, but limit what they get."

The hearing was the fourth of sixth the ICC scheduled to hear citizens' and advocacy groups' comments on Ameren's request, which it submitted to the ICC in November. The ICC has a Sept. 30 deadline to decide.

The request comes under state regulatory authority because it involves Ameren's distribution of energy to its customers, "and you don't have a choice" to receive electricity or natural gas from another supplier, said state Sen. Dave Koehler, D-Peoria, who attended the hearing "to hear your (speakers') stories."

They came from about two dozen people who signed in to make comments, and were led off by Mary Patton, a former Peoria Circuit Court clerk and now local representative for the AARP.

The rate increase will strike hardest at older people on low fixed incomes, she said, and "will negate (the) victory" in which the state forced Ameren to rebate large amounts of the higher energy payments it charged last year after the end of state utility rate regulation saw its rates skyrocket.

Randy Fritz, representing the watchdog Citizens Utility Board, said Ameren seeks an increase only months "after it got its wrists slapped" with the rebates. "And now the power company is reaching for our pocketbooks again."

"No one likes price increases; I know I don't like price increases," Nelson said, but one now will help Ameren improve its bond rating, making borrowing for future needs cheaper and future rate increases less likely.

Michael Smothers can be reached at (309) 686-3287 or msmothers@pjstar.com.

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