PEORIA, Ill. (WMBD) — Ameren Illinois is asking state regulators for permission to raise its natural gas delivery rates by more than $128 million, a move the company says is necessary to meet federal safety mandates and replace aging infrastructure.
Consumer watchdogs argue the request would put too much pressure on families already struggling with high costs.
The Illinois Commerce Commission (ICC) is currently reviewing the proposal, which Ameren says would add about $6 a month to the average residential customer’s bill.
Watchdogs Call for Deeper Cuts
The request comes after Ameren filed an original proposal for a $134 million increase, later adjusted to $128.8 million during the review process.
An administrative law judge has already recommended cutting that request by about $44 million, but groups like the Citizens Utility Board (CUB) and Illinois PIRG say that doesn’t go far enough.
“Since 2018, Ameren has increased gas delivery rates by about $200 million while profits have soared,” said Jim Chilsen, Director of Communications for CUB. “Customers see these constant hikes and say enough is enough.”
Chilsen said Ameren’s proposed rate hike would be its fourth since 2018, totaling nearly $200 million in increases over seven years. He urged the ICC to reject what he called a “money grab” and cut the increase further.
Ameren Responds
Ameren officials defend the rate case, saying the funds are needed to comply with federal regulations and to ensure the company can safely deliver gas to homes across Central and Southern Illinois.
“About 40% of our increase is to meet new federal requirements for testing transmission pipelines by 2035,” said Brad Kloeppel, Senior Director of Gas Technical Services for Ameren Illinois. “Another portion goes toward replacing leak-prone pipe to keep our system safe and reliable.”
Kloeppel added that roughly half of Ameren’s pipeline network is more than 50 years old, and continued upgrades are essential to maintaining safety. He also noted that even with the proposed hike, Ameren’s average total gas rate would remain below the national average, around $1.50 per unit, compared to $1.85 nationally.
What Happens Next
The Illinois Commerce Commission is expected to issue its final decision by Dec. 1.
Consumer groups are planning a public forum on Nov. 1 in East St. Louis to discuss the proposal and the broader future of gas utilities in Illinois.
WMBD TV can be reached at News@WJBC.com.
