SPRINGFIELD — In the middle of the winter heating season, the Illinois Commerce Commission has allowed Ameren Illinois to raise the natural gas rates of their customers in central and southern Illinois, influencing a consumer advocacy group to appeal their decision.
The Chicago-based Citizens Utility Board said it planed to appeal the ICC’s decision that gave Ameren Illinois permission to increase their natural gas rates, allowing them to collect $32.2 million in additional annual revenues.
“CUB is disappointed that it’s still more than Ameren needed or deserved,” said CUB Executive Director David Kolata in a news release. “This increase hits customers in the heart of the winter heating season, and threatens to wipe out potential savings thanks to a mild winter. This is the worst possible time for a rate hike.”
The ICC’s decision that allowed Missouri-based Ameren Corp. to raise natural gas rates for its Ameren Illinois customers came nearly 11 months after the investor-owned utility company filed a natural gas delivery service rate case.
“We filed a natural gas delivery service rate case on February 18, 2011, and so this has been under consideration by the Illinois Commerce Commission since that time,” said Ameren Corp. Spokesman Leigh Morris. “They have under law 11 months to conduct hearings, take evidence, completely review and study the case. The public has an opportunity then to weigh it with their opinions, various groups and organizations can offer their views — all that was done.”
The rate case was “designed to recover expenses that this company incurs that are above and beyond what current rates allow us to recover, plus secure what would be an adequate return on equity,” said Morris.
“One of the reasons why we need to increase our revenue is the cost of everything we buy has gone up,” said Morris.
Originally, Ameren Illinois requested a natural gas rate increase that would allow them to collect $51 million in additional annual revenues. However, the ICC cut about $19 million from that request.
On January 20, Ameren Illinois raised natural gas rates for around 813,000 of its natural gas customers in central and southern Illinois.
According to Ameren Illinois, a typical residential customer who uses about 785 therm of natural gas per year will see an increase of 86 cents per month in Rate Zone 1, $3.44 per month in Rate Zone 2 and $2.68 per month in Rate Zone 3.
Ameren Illinois natural gas customers can find out how the rate increase will affect them individually by visiting the website illinoisratefacts.com, beginning February 1.
“By entering their account number (on the website), they’ll be able to see exactly what the increase would mean for them individually,” said Morris.
Although Ameren Illinois customers have to adjust to paying higher natural gas rates, they can lower their natural gas bills by participating in the utility company’s ActOnEnergy program, said Morris.
“Go to ActOnEnergy.com and the information is all there,” said Morris. “In addition to free advice, the program provides financial rebates and financial incentives for both residential and business customers.
“For example, if you were to get a programmable thermostat and use it, you could cut your year round energy spending at your home by somewhere in the neighborhood of about $200. If you need a new furnace, we offer incentives of up to $200 for high efficiency natural gas furnaces, which will save you money and will cover your investment and then some if you do it. Those are just two examples.”