Small crowd at hearing opposes Ameren rate hike

Only three people testified Wednesday night before members of the Missouri Public Service Commission (PSC) in Jefferson City about a proposed electric rate increase by Ameren Missouri.

Although all three said they were pleased with the service the company was providing, they asked the commissioners to deny the request.

The request was filed by Ameren in July. If approved, it would lead to an increase in revenue of $206 million, which company officials said would equate to a 7.8 percent average increase in rates for consumers. That translates to about $8.27 a month more in the average customer's bill, Ameren officials said.

At the hearing at the PSC Offices in the Governor Office Building, company officials said they're asking for the increase because they've made $1.4 billion in investments since their last rate review two years ago. That includes maintenance on the company's electric grid, clean energy development projects and enhancing security to the electric grid. They also had to pay $34 million for upgrades to regional energy transmission systems, and they're dealing with the loss of their largest energy consumer, Noranda Aluminum, which closed its New Madrid facility as part of a bankruptcy in March. The company continuously used approximately the same amount of energy as all of Springfield, the state's third-largest city.

"This is just too much for those of us who are on a fixed income," Cole County resident Thomas Huber said. "If we're having to make up for the loss the company is experiencing due to the loss of their biggest customer, it's just not equitable."

The state Office of Public Counsel (OPC) issued a statement saying it will carefully review Ameren's proposal. The statement indicated some of Ameren's numbers are already being challenged.

"While Ameren characterizes the overall increase to be approximately 7.8 percent, the proposed increase for residential customers is actually closer to 8.29 percent since Ameren proposes to apply more of the increase to residential customers than other customer classes," the OPC release stated.

The OPC response also indicated the office will look closely at a proposed "system access charge," which it alleges would effectively raise the fixed customer service fee from $8 per month to $12.89 - a 61 percent increase.

"Last year, the company showed a profit of $6 billion," resident Bryan Struebig said. "Why should I have to pay more in my bill to make sure the shareholders are getting their profits. My income hasn't gone up, and wages are staying stagnant."

"As I've said at other commission meetings, my issue is that none of you (commissioners) are elected," Jefferson City resident Leonard Steinman said. "It's taxation without representation. I'm mad because it's my taxes that pay your salary."

Company officials said this is Ameren's seventh request for a rate review in the last decade, and it's the smallest amount they've sought. The review process will include an audit of Ameren's finances before a final determination is due at the end of May.