CUB Takes Firm Stand Against Ameren's $134 Million Gas Rate Increase Proposal

CUB Challenges Ameren's Proposed Gas Rate Hike

In a significant move, the Citizens Utility Board (CUB) announced that it will challenge Ameren's proposal for a whopping $134 million increase in gas rates within Illinois. This decision comes as the utility company has already amassed $111 million in rate hikes since 2021, placing substantial financial strain on consumers throughout the state.

CUB highlights that this latest proposal includes a drastic increase in key delivery charges by more than 20%, which will further burden many customers who are already feeling the pinch of rising utility costs. Sarah Moskowitz, Executive Director of CUB, emphasized the urgent need for the Illinois Commerce Commission (ICC) to scrutinize Ameren's expenditures and demand accountability from the utility provider.

The discussion surrounding Ameren's financial habits reveals a troubling narrative. While customers struggle with surging costs, Ameren's parent corporation enjoyed a staggering profit of $975 million in the first nine months of 2024. This juxtaposition raises valid concerns about the fairness of pricing strategies that prioritize shareholder profits over consumer welfare.

Details of the Proposed Hike

Ameren filed its request on January 8, 2025, outlining its need for a gas rate increase under the Docket #25-0084. Notably, the proposal amounts to closer to $187 million when taxes are factored in, indicating a significant financial strain on Illinois households. According to initial filings, customers will see an approximately 24% rise in monthly charges—raising the base charge to $25.16—and a staggering 28% increase in per-therm distribution charges, pushing the rate to 56.207 cents per therm. Furthermore, the utility seeks to elevate its Return on Equity (ROE) from 9.44% to 10.7%, benefitting shareholders while customers bear the brunt of this hike.

A considerable portion of gas bills arises from delivery rate charges, accounting for one-third to one-half of the total costs. It is critical to note that these charges are designed to recoup the costs of delivering gas to homes and are where utilities often secure their profit margins.

Implications for Consumers

CUB's staunch opposition comes in response to what they describe as a damaging trend in Illinois’s utility landscape. Over the past few years, Ameren has amassed multiple rate increases, including a $76 million hike in 2021 and a $35.2 million increase in 2023, compounding the ongoing crisis faced by consumers.

In response to the proposed hike, CUB is mobilizing public support through petitions and urging Illinois residents to voice their opinions to regulatory bodies. They are also disseminating resources for customers struggling to pay their bills, highlighting available programs such as the Low Income Home Energy Assistance Program (LIHEAP).

For over four decades, CUB has advocated for the rights of residential and small business customers in Illinois, effectively saving them more than $20 billion by opposing unjustified rate increases and securing refunds. This enduring commitment to consumer advocacy positions CUB as a significant force in the ongoing battle against utility price escalations.

As the Albert Docket No. 25-0084 enters an 11-month case, discussions will unfold about Ameren’s proposed hikes and their broader implications for Illinois households. As consumer advocates rally, now more than ever, it is essential for residents to stay informed and engage in advocating for fair utility rates.

For additional support, consumers can reach out to CUB's Consumer Hotline at 1-800-669-5556 or visit their official website, www.CitizensUtilityBoard.org. As discussions continue, the importance of maintaining accessible, affordable energy solutions remains crucial for community well-being.

This article is based on announcements and statements from the Citizens Utility Board regarding the proposed gas rate increase by Ameren Illinois. Further updates will follow as the Illinois Commerce Commission reviews the concern raised.