PSC, Ameren get earful of public comment at hearing

Greg Ochoa of the Public Service Commission explains how the commission works at the public hearing of the Ameren Missouri rate hike Monday. Photo by Stephen Brooks.

By Jeff Haldiman

Tuesday, July 31, 2012

As expected, the overwhelming response was “don’t raise the rates.”

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About 100 people showed up for the Missouri Public Service Commission (PSC) public hearing on Ameren Missouri’s electric rate increase case Monday night.

“Think about when you become a senior citizen and won’t be able to get out and work and have to live on a fixed income,” said Imagine Hajny, who lives in Hyder Apartments in Jefferson City.

Speaking to PSC commissioners, Hajny told commissioners, “Right now you have the luxury of making a living. I’d love to still be able to work, but I’m 78. They tell me I make too much money to qualify for help; they won’t say I’m too old.”

Ameren Missouri asked the PSC on Feb. 3 to increase the company’s annual electric operating revenues by approximately $375.6 million. That would be a 14 percent increase, which would mean about a $14 a month increase for the average customer.

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willows 9 months, 3 weeks ago

AMEREN IS AND HAS ALWAYS BEEN A BUNCH OF THIEVES NOT CARING ABOUT THE PUBLIC

RobHunterJohnson 9 months, 3 weeks ago

Check out the rates, some of the lowest in the country, wait until you get a big power company! Rob

JCLifer 9 months, 3 weeks ago

Lowest wages in the country make it hard to pay all these increases in utilities, taxes, high grocery prices, fire fighters new stations, new high school, transformation, and the roads are still in bad shape.

Littleinvestor 9 months, 3 weeks ago

Ameren is a BIG power company, traded on the NY Stock Exchange. The PSC guarantees Ameren a profit margin of 10 percent or more. Other than utilities, what other company's, big or small, have a "guaranteed" rate of return? None.

RobHunterJohnson 9 months, 3 weeks ago

Why don't you both go Grease your WINDMILLS! Rob

LaTda 9 months, 3 weeks ago

I may not complain as much for a small increase, but an average of $14.00 is robbery! There have been too many increases in the last couple of years to justify this rate increase. The service is horrible! Where I live, I am constantly having one power surge after another...I have even lost 2 televisions, a DVD player and my air conditioner! Gurr!

whocares 9 months, 3 weeks ago

there is a reason they sell surge protectors ALL over the world. It's not just because of Ameren. I suggest you invest in a few around your house, sounds like you would come out better in the long run. I am on a co-op that buys from Ameren. I wish I was on Ameren's lower rates.

JCLifer 9 months, 3 weeks ago

Sadly, Rob is correct. We have some of the lowest electric rates in the country. Western Canada may have us beat with their lower hydro rates, but other than that, we are doing pretty good.

Low wages are making it hard to pay the bills, however.

I am an Ameren investor. Their stock has somewhat increased in value over the years, but it is a minimal increase. Dividends paid are pretty minimal too. I don't begrudge them an increase if they can keep providing electricity reliably. However, I do wish they would get busy on building that reactor expansion.

Too bad Obama's stimulus went to rescue weathy wall street bankers and mismanaged auto companies.I would have rather had just a bit of the stimulus go to help home owners insulate their houses better and to upgrade old inefficient heating and air conditioning equipment. They could have used the stimulus to build more nuclear plants and provide JOBS to out of work construction folks.

Oh well, the economy is going to really take a big dump after the election. Our old friend skyrocketing inflation will be back as they print money like mad to try to pay off some of the deficit that Obama created. Things may seem bad right now, but next year they are going to be real bad.

JonH 9 months, 3 weeks ago

Why would you invest in such an anti-capitalistic structure? Almost seems wrong?

John 9 months, 3 weeks ago

What about the TVA?

Littleinvestor 9 months, 3 weeks ago

I don't have to go grease my windmill Rob. Ameren is already buying windpower and solar power, as are some of the coops in the state. they can grease the windmills without my help. I was just pointing out the fact that Ameren is not a tiny company and the Missouri PSC has always highly favored utilities in its decision making. Sure wish all of my stock earned 10 percent or more but most of it is in companies that are out competing in the world markets and have no income guarantee from a governmental agency.

JCLifer 9 months, 3 weeks ago

Ameren is FORCED to buy expensive solar and wind power due to law. People thought that was a great idea to force AMEREN to by alternative energy. Now they are complaining that they don't want to pay for it. Did they think it was FREE?

The 10 percen figure is way off base. There is no way Ameren earns 10%. If it was true, I sure as hell wouldn't be here anymore. I'd be on the beach.

Littleinvestor 9 months, 3 weeks ago

What is paid to you in dividends comes out of the profit but not all of the profit is paid out. It's up to the board of directors to decide what you get each quarter. And Ameren has more than one class of stock. Some classes of stock pay a higher dividend than others. I don't begrudge them a profit but they do get a guaranteed rate of return and most businesses do not.

bluesfan13 9 months, 3 weeks ago

You seem to be way off base. 2011 1st and 2nd quarter revenues were just over $3 billion, with profit over that period about $200 million. That's 6.667% not anywhere close to your 10% figure.

Sequoia 9 months, 3 weeks ago

That ten percent return is an opportunity, not a guarantee. The utility commission sets rates and allowed return in advance. Variables like hot/cold winters/summers, big storm outages etc. all affect how much power the company actually sells at those rates, which affects the return the utility actually earns and distributes to shareholders.

RobHunterJohnson 9 months, 3 weeks ago

Thanks J C, I agree with a lot of what you said as well, we need to be proactive on the Nuke Plant. Right now Ameren does not buy a lot off the grid or our bills would look a lot higher than they were this month. Rob

LuckNLove 9 months, 3 weeks ago

Unless, I'm mistaken, Jefferson City dosn't get their power from the Nuke Plant so I'm not really sure how adding another tower would lower rates for us...please explain.

dokeus6 9 months, 3 weeks ago

Whether the electricity comes from solar panels, windmills, coal fired plants, nuke plants, gas plants Ameren will buy the electricity we use from the cheapest source at the moment. They will buy power from the electrical co-ops and the co-ops buy it back and so forth. If the electricity coming from the nuke plant is cheaper than the coal fired plants the co-ops will buy the electricity from there. The co-ops will sell Ameren the electricity from coal fired plants and gas turbine plants in southern Missouri along with the power generated by the dams.

Folks, electricity is electricity. Doesn't matter how it is produced it costs the same coming off the grid to the companies that supply it.

The Grid is connected.

Sequoia 9 months, 3 weeks ago

A new nuke plant would make all our rates skyrocket. Building a new nuclear power is THE MOST EXPENSIVE source of power there is.

asb 9 months, 3 weeks ago

I would modify that a little, nuke is the most expensive non-carbon source. It is also very plentiful, but yes, expensive compared to other non-carbon sources. The truely most expensive source of energy is carbon. Whether emitted directly and causing massive future environmental costs, or sequestered at nuke-grade costs, carbon is the king of cost. We subsidize it massively and lie about the future costs, so it seems like the right stuff, but it ain't.

asb 9 months, 3 weeks ago

That would be your, and the carbon sellers' reality, but it is not actual reality.

RobHunterJohnson 9 months, 3 weeks ago

Thanks Grace! Rob

JCLifer 9 months, 3 weeks ago

Why do you keep spouting that lie about nuclear power being the most expensive? It is not true- nuclear does have a large investment up front, but the per megawatt hour lifelong cost is some of the cheapest of all electrical generation expenses. I provided a couple of links on the last article you spouted this lie- did you not read them?

JCLifer 9 months, 3 weeks ago

Our rates are going to skyrocket anyway. The cheap older coal-fired plants are nearying the end of their life. Coal power is being choked to death by environuts. What do you think the rates are going to do when the Labadie (coal) plant is shut down? That one plant supplies something like 15% of the power in this region.

Ameren doesn't care too much one way or the other. They have a captive market of people who are gonna buy electricity from them whether or not it is produced by their cheap nuke plants, Bagnall, natural gas, or whatever. If they don't have capacity or can get the power cheaper, they are going to buy it from whereever they can get it and pass the costs on to the customers. If they build the nuclear plant now, they can retain considerable of their own generating capacity at a reletively cheap rate, and not have to buy more expensive power elsewhere. Costs are going to go up-- it is that we an help keep them lower than they will otherwise if we can let Ameren get going on the nuclear plant NOW. Besides, we need the JOBS and we need the JOBS HERE AND NOW.

mommyof2 9 months, 3 weeks ago

I had a robo call urging me to attend the meeting.... Nothing makes me madder than when people don't check their facts before bothering me. I DON'T HAVE AMEREN.

RobHunterJohnson 9 months, 3 weeks ago

Mommy who is your utility,I would say they probably buy some from their power from Ameren and you may be paying someone's dividend. Rob

RobHunterJohnson 9 months, 3 weeks ago

Luck, The sooner Ameren builds the cheaper it will be. Meremac is probably the oldest in their fleet ( coal 1953 ) if they don't replace those old units at some point we will pay through the nose for our power later and if we have to go on the grid ( peak alert) We will really be in trouble. The Coops, Columbia, K C P L, and Ameren are involved in this latest Nuke deal . Rob

LuckNLove 9 months, 3 weeks ago

Thanks for the info. I'll have to do some more reading!

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