One of Illinois’ top consumer watchdogs is warning customers that Ameren Illinois is asking to raise electric rates by nearly $60 million next year after it went over its capital expenditures budget this year.
The Citizens Utility Board said that Ameren is returning to the Illinois Commerce Commission this month to request an additional $59.6 million on top of an increase of $308.6 million that had been approved last year for its electric service. The initial increase was to be phased in over a period of four years, but a provision in state law allows for the ICC to recover yearly expenses through reconciliation if the utility goes over budget on capital expenditures over the past year.
CUB says that Ameren’s proposal would have $14 million in what they called “wasteful” spending, with $10.8 million being used to reimburse shareholders for contributions to their employees’ retirement fund that the watchdog says they cannot prove they made. CUB also says that Ameren is also attempting to use $200,000 for an “unexplained” increase in expenses for meter-reading and $62,928 to pay for outside contractors used for work on a $775,000 project that was supposed to be handled internally.
Sarah Moskovitz, CUB’s executive director, says that customers shouldn’t have to foot the bill if a utility goes over their budget in a given year.
“We will always challenge wasteful spending by the utilities,” Moskovitz said in a news release. “And, while consumer protections have improved, we support ending this reconciliation benefit for utilities. If Ameren blows through its budget in a given year, customers shouldn’t have to pay the excess.”
Regulatory judges have already approved a recommended decrease of $9.8 million for Ameren, with the members of the ICC allowed to follow the recommendation or adjust it up or down as they see fit. A final ruling is expected to be handed down by Dec. 20, with CUB asking customers to sign a petition to the ICC asking them to reject Ameren’s request.
Ellie Leonard, a spokesperson for Ameren, said that the company was required by state law to make the reconciliation filing with the ICC in order to identify the cost of managing and operating the electric system. She said that if the full $59.6 million increase is approved, customers would see a monthly increase of 39 cents per month on their electric bills.
This article originally appeared on Journal Star: Ameren Illinois seeks new electric rate increase. Here’s what to know
Reporting by Zach Roth, Peoria Journal Star / Journal Star
USA TODAY Network via Reuters Connect
