SOUTHERN ILLINOIS — Despite earlier announcements that the Illinois Commerce Commission has approved an order requiring utilities to pass along their federal tax overhaul savings to customers, the Citizens Utility Board is warning of possible rate hikes for utility customers in Southern Illinois.
Ameren Illinois has asked the Illinois Commerce Commission (ICC) for an electric delivery rate increase of $71.75 million.
This is on top of the company’s $46.6 million natural gas increase proposed earlier this year, so Ameren customers could get hit with a double whammy of gas and electric hikes in 2019.
According to the Citizens Utility Board, Ameren filed for a $71.75 million rate-hike request on Monday, April 16. If approved, it would take effect in January of 2019.
This proposal for new delivery rates is in accordance with the state’s 2011 “Energy Infrastructure and Modernization Act,” or the “smart-grid bill.” The new law uses a formula to determine Ameren rates each year to pay for about $625 million in system upgrades.
The rate hike affects delivery charges—what customers pay to have the electricity delivered to their homes.
Those charges take up about a third to a half of the bill. (The rest of the bill is taken up by the cost of the electricity itself.)
Since this increase involves delivery rates, all customers will pay the higher rates—even those with an alternative electricity supplier.