PSC approves pact to help low-income utility customers

The Missouri Public Service Commission has approved a second modified agreement between Ameren Missouri and the Office of the Public Counsel, which authorizes Ameren to re-direct approximately $3.5 million to further help low-income customers needing assistance due to the COVID-19 pandemic.

The OPC is a separate state agency that represents the public before the PSC.

Under the second modified agreement, the $3.5 million, which was originally scheduled to be used for a low-income weatherization program, will now be re-directed as: Approximately $1.3 million to fund a low-income energy efficiency program; approximately $1.2 million to fund additional low-income energy assistance in 2021; and approximately $1 million to fund administrative costs for the agencies charged with administering the distribution of energy assistance funding to low-income customers.

The order is to begin in less than 30 days.

In March 2020, the PSC approved an agreement among parties in an Ameren Missouri rate case, which reduced Ameren's annual electric revenue by approximately $32 million, effective April 1, 2020.

In that case, the PSC also approved a separate agreement between Ameren and OPC in which the electric company would donate approximately $7 million to the 14 consumer action agencies in the state that administer low-income weatherization assistance programs in the Ameren service territory, to be spent on low-income weatherization or for assistance to low-income customers for such customers' participation in Ameren's energy efficiency programs.

In a May 2020 filing with the PSC, OPC and Ameren sought PSC approval to modify the agreement. In that filing, they stated, "The impacts of COVID-19 on Ameren's low-income customers is particularly acute in terms of those customers' ability to pay their utility bills."

The filing also noted while low-income customers would ultimately benefit from the implementation of weatherization measures at their residences, weatherization activity in the state had all but stopped due to the pandemic.

Under the first modified agreement approved by the PSC on May 21, 2020, $3.5 million of the approximate $7 million was used to provide low-income energy assistance to Ameren's electric customers needing assistance with paying their electric bills. The other $3.5 million was to be used for low-income weatherization/energy efficiency as originally agreed to between Ameren Missouri and OPC.