Citizen groups challenge $134M Ameren Illinois rate increase
PEORIA, Ill. (WMBD) — Citizen advocacy groups, on Wednesday, argued that a proposed $134 million rate hike for natural gas use is beyond what is needed.
The Citizens Utility Board and the Illinois Public Interest Research Group held a joint news conference, saying Ameren Illinois' request to the Illinois Commerce Commission asking to raise the gas prices is overly excessive, said Jim Chilsen, CUB's communications director.
'Consumer advocates argue Ameren's bid for $134 million rate hike is unjust, unreasonable, and it's at least triple what the utility could justify' he said.
In a release, Ameren said that the price increase is a necessary step in order to ensure safety and meet federal guidelines, according to Brad Kloeppel, an company spokesman.
Ameren files electric and gas rate hikes before Illinois Commerce Commission
'The investments we have proposed in our reliability plan will enable us to meet strict federal pipeline safety requirements, reduce leaks, and provide reliable and affordable natural gas to our residential and business customer,' he said. 'We evaluate all available methods to maintain compliance at the lowest possible cost based on operational feasibility and industry best practices.'
The proposed hike would be the fourth rate increase since 2018. CUB says it will raise monthly bills by 12% to 13%. That comes to about $10 more a month, or more than $100 a year for the average person, Chilsen said.
He argued that the ICC should reject at least two-thirds of the proposed rate hike. Eric DeBellis, general counsel for CUB, accused Ameren of using money from customers to pay for things that stockholders should pay for.
'Ameren's proposed increase is at least triple what the utility can justify under law. In this case, we and other parties have already exposed more than $85 million in excessive, unjustified charges, largely driven by Ameren's push for an excessive shareholder profit margin and questionable accounting practices,' he said.
DeBellis said CUB and others are pushing for lawmakers to approve the Utility Transparency Act, which would work to stop companies from doing just that.
Kloeppel says that there is a strategic process Ameren uses to keep gas rates affordable for their customers.
'Ameren Illinois takes a strategic approach to maintaining the natural gas system and keeping customer rates affordable. A significant amount of natural gas is purchased in the summer, when prices are typically lower, and stored in twelve underground storage fields for withdrawal during the colder winter months,' he said. 'Up to 24.2 billion cubic feet of natural gas are in reserve and available for distribution at lower prices.'
Kloeppel added they understand a price increase can be difficult for some customers to pay, and said anyone who needs assistance can find programs on Ameren's website.
The ICC will give their final decision on whether Ameren can raise the rates sometime in November.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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