Electricity Rates are Going Up: But not as much as Ameren would like

Last July, Ameren Missouri filed a rate increase with the Missouri Public Service Commission, requesting a rate increase of 7.8% for residential consumers. This requested increase would have meant an average household increase of around $100 a year and annual operating revenue increase of $206.4 million.

After months of hearings, the Missouri Public Service Commission last week approved an agreement with Ameren that authorizes an increase which is significantly lower than requested by Ameren. The increase will amount to around an additional $3.70 to monthly bills for the average residential customer and a total increase to its yearly operating revenues by around $92 million, significantly lower than the requested increase of $206.4 million.

Perhaps most significantly, the requested monthly fixed “grid access fee” of $4.89 was successfully blocked. Fixed fees hit hardest low-usage customers, disproportionately impact low-income families and can discourage conservation by reducing the variability in the overall bill.

The Ameren agreement also includes significant increase in the budget for the Keeping Current program, which provides bill payment assistance to low-income customers which puts the total program at roughly $1.25 million.

Consumer advocates are hailing this agreement as a success. “Ameren has raised rates about 50% over the last ten years and there was simply no justification for such a large additional increase.” Utility Council John Coffman says “and blocking the fixed fee is a huge win for consumers.”

The Consumers Council of Missouri (CCM), was a crucial intervener in the case. Director Cara Spencer adds “the increase to the Keeping Current program is especially important as the federal government considers slashing programs that help low-income families pay utility bills.”

The PSC voted unanimously to approve Ameren Missouri's increase which takes effect on April 1. The agreement will also change the way customer bills look. Ameren Missouri will label and display customer and volumetric charges separately. The company will also be adding billing information to its website.

Ameren Missouri has around 1.26 million electric customers across the state, according to the PSC.

Cara Spencer

Consumers Council of Missouri

The Caldwell County News

101 South Davis
P.O. Box 218
Hamilton, MO 64644
Phone: 816-583-2116
news@mycaldwellcounty.com

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