Ameren Missouri seeks 14.6 percent rate hike

Friday, February 3, 2012

By JIM SALTER

Associated Press

ST. LOUIS (AP) — Customers of Ameren Missouri would see their average monthly electric bills rise about $14 under a rate increase proposal filed Friday with the Missouri Public Service Commission.

Ameren Missouri asked regulators to raise electric rates by $376 million, or 14.6 percent. Company leaders said the increase necessary to pay for work to reduce outages, infrastructure upgrades and environmental improvements, as well as to offset higher fuel costs. A consumer group said the increase would create a hardship for many struggling Missouri families.

The PSC could take up to 11 months to review the request. Ameren Missouri serves customers in the St. Louis region and parts of eastern, central and southern Missouri.

Warner Baxter, chairman, president and chief executive officer for St. Louis-based Ameren Missouri, said the utility has spent $3.2 billion since 2007 to upgrade an aging infrastructure, including millions on a tree-trimming program to help prevent outages. Air pollution near power plants is being reduced.

“Our customers have consistently told us that reliability is their highest priority and that they also want cleaner air,” Baxter said. “Over the last several years, we have made significant investments in our infrastructure that are producing results.”

If approved, the increase would be Ameren’s fifth in six years. But Baxter said the money has been well-spent, citing 27 percent drops in both the number of outages and in sulphur emissions. Meanwhile, he said, power plant performance has improved.

But Joan Bray, president of the Consumers Council of Missouri, said the latest rate increase is stunning given the struggles of the economy.

“This would be another blow to consumers,” said Bray, a former state lawmaker from suburban St. Louis. “It almost takes my breath away.

“We will be making every effort to try to get the best deal we can out of this for the consumers because we have been hit hard, and at a terrible time for everybody’s pocketbook,” she said.

Ameren officials said budget billing and energy assistance programs are available for needy customers.

Baxter said the company’s electric rate increases haven’t kept pace with inflation over the past two decades. Ameren’s current electric costs, he said, are just 12 percent higher than 1991 — inflation in general is up 65 percent nationwide over that same period. And he also said Ameren’s rate is 16 percent less than the average rate in neighboring states.

Lewis Mills, the state public counsel who represents customers before PSC, was out of the office Friday and did not return a message seeking comment.

Ameren said the rate increase would break down this way:

—$85 million for investments that have already improved reliability and helped the company comply with environmental and renewable energy regulations.

—$103 million to offset higher fuel costs.

—$81 million for recently proposed energy-efficiency programs that the company believes will provide $500 million in customer benefits over the next two decades.

The remainder for other cost increases related to things such as materials and employee benefits.

Baxter said Ameren has been cutting costs since the recession hit in 2008 in an effort to keep rates down. He said 2011 expenditures were more than $300 million less than in 2008. About 340 jobs were eliminated last year through a voluntary severance program.

Among Ameren’s recent projects is a Renewable Energy Center in suburban St. Louis that will take methane gas from decaying trash at a landfill and use it to generate renewable electricity — enough to meet the needs of about 10,000 homes.

Ameren is also seeking to recover costs from several major storms, including an April tornado that tore through St. Louis County.

More like this story

JCLifer 1 year, 3 months ago

Cool! Utilities going up again same time as City Council wants a tax increase!!!

What will they think of next?

How about an increase in health insurance premiums too???

purple 1 year, 3 months ago

When was the last time you heard of Ameren doing something not self-serving? I get that they are a money making business, but what would Pizza Hut's or Dominoes or Papa John's customers say if all the sudden the pizza was 14% more? Yes sir, that pizza is $114. No sir, it is the same exact pizza as last year. Um, yes our corporate execs got multi-millioin dollar bonuses...

We don't have a choice but to eat from Ameren. Open up some competition and then let us see who wants a rate increase.

14.6 is a lot too high. Ameren just got a $160,000,000 rate increase. newstribune.com/news/2011/nov/08/mo-appeals-court-upholds-2009-utility-rate-case/

I am going to order pizza while I can still afford it.

wow 1 year, 3 months ago

Wait let me put my hands are held high above my head and turn my back to the Ameren-Man. Now go ahead a rob me the right way.

What I don't get is there are a lot of people who won't like this Ameren rate increase, because all it is Ameren ala "big business" hurting the little people/consumers. Yet these same people cannot understand why the rich should be paying a higher tax rate and should not be allowed all those tax loop holes.

JCsleeper 1 year, 3 months ago

Wish the utilities, gas cartel, taxing entities, insurance providers, would hurry up and just take it all. That way we wouldn't have to worry about what they're gonna take next.

viktorkowski 1 year, 3 months ago

this is all a big joke anyway. the PSC goes with whatever ameren asks of them.

herekitty 1 year, 3 months ago

Have anybody here ever heard of a electric or gas company saying we earned so much last year that we're lowing your rate this year? The dams were built mostly with your tax dollars.

RetiredOne 1 year, 3 months ago

Don't forget, your city/county taxes will take a hefty hike too because of the rate increase. The 1/2 cent tax that the Transform people are seeking will affect your bill too. At least it will take about 11 months for this increase to be approved. I wonder if the "fuel adjustment charge" will increase too.

JCLifer 1 year, 3 months ago

Ambulance tax. Hotel tax. Walmart roundabout tax Kohls stoplight tax. Transformation tax. Uptown Disrtic tax. New high school tax. I-70 tax.
New library tax?
Special needs/Sheltered Workshop tax?

No plans for repaving crumbling streets. No plans for paying operating/maintenance costs of convention center. No plans for replacing 100 year old sewer system. No plans for replacing 100 year old water mains. No plans for building sidewalks in our neighborhoods. No plans for multipurpose civic center.

DIAGNOSIS: Dead rundown town deep in debt with very high taxes in five years.

JCLifer 1 year, 3 months ago

Trash rates incresing. Sewer rates increasing. Water rates increasing. Electricity rates increasing. Gasline prices increasing. Cable TV rates increasing.

Wages stagnant. Hundreds of Layoffs every year. Health insurance premiums increasing.

TAX INCREASE NOw? ROTFALMAO!

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