{"id":1710,"date":"2016-10-26T10:23:10","date_gmt":"2016-10-26T15:23:10","guid":{"rendered":"https:\/\/www.citizensutilityboard.org\/?page_id=1710"},"modified":"2016-11-16T15:56:56","modified_gmt":"2016-11-16T21:56:56","slug":"20160420_amerenbills","status":"publish","type":"page","link":"https:\/\/www.citizensutilityboard.org\/20160420_amerenbills\/","title":{"rendered":"CUB Statement On Two Developments Concerning Ameren Electric Bills"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column width=&#8221;5\/6&#8243;][vc_custom_heading text=&#8221;CUB Statement On Two Developments Concerning Ameren Electric Bills<br \/>\n&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text]<ul class=\"icon \"><li><i class=\"fa fa-caret-right\"><\/i> <a href=\"https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2016\/11\/20160420_AmerenBills.pdf\" target=\"_blank\"><strong>PDF version<\/strong>\u00a0<strong>of this release<\/strong><\/a><\/li><\/ul>[\/vc_column_text][vc_column_text]<strong>Contact:<\/strong><br \/>\nJim Chilsen, <strong><a href=\"mailto:chilsen@citizensutilityboard.org\">chilsen@citizensutilityboard.org<\/a><\/strong>, <strong>(312) 513-1784<\/strong>[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text]<strong>Statement on Ameren&#8217;s Proposed $14 Million Delivery Rate\u00a0Decrease: <\/strong><\/p>\n<p>&#8220;CUB is always happy to hear that customers will be paying lower electricity rates. We will review Ameren\u2019s proposal for a delivery rate cut, and we will continue to push Ameren to spend revenue wisely to improve the power grid in a way that maximizes consumer\u00a0benefits.&#8221;<\/p>\n<p><strong>Background on Ameren&#8217;s Proposed $14 Million Delivery Rate\u00a0Decrease:<\/strong><\/p>\n<ul>\n<li>On April 15, Ameren proposed a $14.37 million rate cut, which would take effect on Jan. 1, 2017.<\/li>\n<li>Ameren\u2019s proposal affects &#8220;delivery&#8221; rates\u2014what the company charges to deliver electricity to homes. Those rates take up about a third to a half of a bill.<\/li>\n<li>Ameren determines electric delivery rates annually by formula, under the &#8220;Energy Infrastructure and Modernization Act,&#8221; passed by the Illinois General Assembly in 2011 to pay for about $600 million in power-grid upgrades.<\/li>\n<li>Under the formula rate system, Ameren increased delivery rates by about $105.8 million in January 2016. The Illinois Commerce Commission (ICC) will review Ameren\u2019s proposal for a $14 million rate decrease in 2017. The ICC will issue a final ruling this December.<\/li>\n<\/ul>\n<p><strong>Statement on Drop in Ameren Electricity Supply Rates:<\/strong><\/p>\n<p>&#8220;After a year-long campaign against a 30 percent increase in electricity prices, CUB is pleased that Ameren customers who pay the company\u2019s supply rate will see slightly lower prices on June 1. Although this decrease won\u2019t make up for last year\u2019s price spike, this is a step in the right direction toward reforming the electricity market so it better protects Ameren customers from unjust increases. CUB thanks the Federal Energy Regulatory Commission (FERC) for making key changes to power market rules, but we continue to call on FERC to order refunds for Illinois seniors and families who were hit with the high prices last summer.&#8221;<\/p>\n<p><strong>Background on Ameren Supply Price Reduction:<\/strong><\/p>\n<ul>\n<li>The Midcontinent Independent System Operator (MISO) is the power grid operator for all or parts of 15 states, including Central and Southern Illinois. It holds a yearly auction to determine &#8220;capacity&#8221; costs for the next year (June 1-May 31).<\/li>\n<li>Capacity costs are fees wrapped in electricity prices that ensure power plants produce enough energy when demand is high. In the April 2015 auction, Illinois\u2019 capacity cost increased nine-fold to $150\/megawatt-day. That caused a 30 percent increase in Ameren\u2019s supply price, beginning last June.<\/li>\n<li>Illinois Attorney General Lisa Madigan, Illinois Industrial Energy Consumers (IIEC), Southwestern Electric Cooperative, Public Citizen, and CUB called for a probe into the price spike, which led to a windfall for power generators. (Ameren, the regulated utility, doesn\u2019t profit off supply rates, because it\u2019s not a power generator.)<\/li>\n<li>After pleas from Illinois consumer advocates, a Dec. 31 FERC ruling required MISO to make key changes to auction rules. In this spring\u2019s auction, capacity costs for Illinois consumers were cut in half, to $72\/megawatt-day.<\/li>\n<li>After pleas from Illinois consumer advocates, a Dec. 31 FERC ruling required MISO to make key changes to auction rules. In this spring\u2019s auction, capacity costs for Illinois consumers were cut in half, to $72\/megawatt-day.<\/li>\n<li>Ameren has estimated that this drop in capacity cost means a typical residential customer who uses about 10,000 kilowatt-hours of electricity a year and pays the utility\u2019s supply rates could see bills reduced by about $1.75 per month. However, Ameren\u2019s exact supply prices won\u2019t be known until closer to June 1.<\/li>\n<\/ul>\n<p>CUB is Illinois&#8217; leading nonprofit utility watchdog organization. Created by the Illinois Legislature, CUB opened its doors in 1984 to represent the interests of residential and small-business utility customers. Since then, CUB has saved consumers more than $20\u00a0billion by helping to block rate hikes and secure consumer refunds. For more information, call CUB&#8217;s Consumer Hotline, at <strong>1-800-669-5556<\/strong>, or visit CUB&#8217;s award-winning website, <strong>www.CitizensUtilityBoard.org<\/strong>.[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space][\/vc_column][\/vc_row][vc_row full_width=&#8221;stretch_row&#8221; parallax=&#8221;content-moving&#8221; css=&#8221;.vc_custom_1475700006657{padding-top: 5px !important;padding-bottom: 5px !important;background-color: #0f4b91 !important;}&#8221;][vc_column][vc_custom_heading text=&#8221;Help CUB fight utility rate hikes and rip-offs!&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:center|color:%23ffffff&#8221; use_theme_fonts=&#8221;yes&#8221;][vc_row_inner][vc_column_inner width=&#8221;1\/2&#8243;][vc_btn title=&#8221;Donate&#8221; style=&#8221;flat&#8221; color=&#8221;sky&#8221; align=&#8221;right&#8221; link=&#8221;url:https%3A%2F%2Fsecure3.convio.net%2Fcerf%2Fsite%2FDonation2%3Bjsessionid%3D84A6C7C3E6006F4D563E8BA56235E430.app30102b%3Fdf_id%3D8324%26mfc_pref%3DT%268324.donation%3Dform1%26autologin%3DTRUE||target:%20_blank|&#8221;][\/vc_column_inner][vc_column_inner width=&#8221;1\/2&#8243;][vc_btn title=&#8221;Renew&#8221; style=&#8221;outline&#8221; color=&#8221;white&#8221; align=&#8221;left&#8221; link=&#8221;url:https%3A%2F%2Fsecure3.convio.net%2Fcerf%2Fsite%2FDonation2%3Bjsessionid%3D84A6C7C3E6006F4D563E8BA56235E430.app30102b%3Fdf_id%3D8324%26mfc_pref%3DT%268324.donation%3Dform1%26autologin%3DTRUE||target:%20_blank|&#8221;][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column width=&#8221;5\/6&#8243;][vc_custom_heading text=&#8221;CUB Statement On Two Developments Concerning Ameren Electric Bills &#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text][\/vc_column_text][vc_column_text]Contact: Jim Chilsen, chilsen@citizensutilityboard.org, (312) 513-1784[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text]Statement on Ameren&#8217;s Proposed $14 Million Delivery Rate\u00a0Decrease: &#8220;CUB is always happy to hear that customers will be paying lower electricity rates. We will review Ameren\u2019s proposal for a delivery rate cut, and we will continue to push Ameren to spend revenue wisely to improve the power grid in a way that maximizes consumer\u00a0benefits.&#8221; Background on Ameren&#8217;s Proposed $14 Million Delivery Rate\u00a0Decrease: On April 15, Ameren proposed a $14.37 million rate cut, which would take effect on Jan. 1, 2017. Ameren\u2019s proposal affects &#8220;delivery&#8221; rates\u2014what the company charges to deliver electricity to homes. Those rates take up about a third to a half of a bill. Ameren determines electric delivery rates annually by formula, under the &#8220;Energy Infrastructure and Modernization Act,&#8221; passed by the Illinois General Assembly in 2011 to pay for about $600 million in power-grid upgrades. Under the formula rate system, Ameren increased delivery rates by about $105.8 million in January 2016. The Illinois Commerce Commission (ICC) will review Ameren\u2019s proposal for a $14 million rate decrease in 2017. The ICC will issue a final ruling this December. Statement on Drop in Ameren Electricity Supply Rates: &#8220;After a year-long campaign against a 30 percent increase in electricity prices, CUB is pleased that Ameren customers who pay the company\u2019s supply rate will see slightly lower prices on June 1. Although this decrease won\u2019t make up for last year\u2019s price spike, this is a step in the right direction toward reforming the electricity market so it better protects Ameren customers from unjust increases. CUB thanks the Federal Energy Regulatory Commission (FERC) for making key changes to power market rules, but we continue to call on FERC to order refunds for Illinois seniors and families who were hit with the high prices last summer.&#8221; Background on Ameren Supply Price Reduction: The Midcontinent Independent System Operator (MISO) is the power grid operator for all or parts of 15 states, including Central and Southern Illinois. It holds a yearly auction to determine &#8220;capacity&#8221; costs for the next year (June 1-May 31). Capacity costs are fees wrapped in electricity prices that ensure power plants produce enough energy when demand is high. In the April 2015 auction, Illinois\u2019 capacity cost increased nine-fold to $150\/megawatt-day. That caused a 30 percent increase in Ameren\u2019s supply price, beginning last June. Illinois Attorney General Lisa Madigan, Illinois Industrial Energy Consumers (IIEC), Southwestern Electric Cooperative, Public Citizen, and CUB called for a probe into the price spike, which led to a windfall for power generators. (Ameren, the regulated utility, doesn\u2019t profit off supply rates, because it\u2019s not a power generator.) After pleas from Illinois consumer advocates, a Dec. 31 FERC ruling required MISO to make key changes to auction rules. In this spring\u2019s auction, capacity costs for Illinois consumers were cut in half, to $72\/megawatt-day. After pleas from Illinois consumer advocates, a Dec. 31 FERC ruling required MISO to make key changes to auction rules. In this spring\u2019s auction, capacity costs for Illinois consumers were cut in half, [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"footnotes":""},"class_list":["post-1710","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/pages\/1710","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/comments?post=1710"}],"version-history":[{"count":0,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/pages\/1710\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/media?parent=1710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}