{"id":43516,"date":"2025-08-26T13:26:25","date_gmt":"2025-08-26T18:26:25","guid":{"rendered":"https:\/\/www.citizensutilityboard.org\/?p=43516"},"modified":"2025-08-26T13:26:25","modified_gmt":"2025-08-26T18:26:25","slug":"update-on-amerens-gas-rate-hike-request","status":"publish","type":"post","link":"https:\/\/www.citizensutilityboard.org\/blog\/2025\/08\/26\/update-on-amerens-gas-rate-hike-request\/","title":{"rendered":"Update on Ameren\u2019s gas rate-hike request"},"content":{"rendered":"<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2023\/07\/Ameren-Illinois-rate-hike-Instagram-Post-Square.png\"><img fetchpriority=\"high\" decoding=\"async\" width=\"300\" height=\"300\" class=\"alignright size-medium wp-image-37850\" src=\"https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2023\/07\/Ameren-Illinois-rate-hike-Instagram-Post-Square-300x300.png\" alt=\"\" srcset=\"https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2023\/07\/Ameren-Illinois-rate-hike-Instagram-Post-Square-300x300.png 300w, https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2023\/07\/Ameren-Illinois-rate-hike-Instagram-Post-Square-800x800.png 800w, https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2023\/07\/Ameren-Illinois-rate-hike-Instagram-Post-Square-150x150.png 150w, https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2023\/07\/Ameren-Illinois-rate-hike-Instagram-Post-Square-768x768.png 768w, https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2023\/07\/Ameren-Illinois-rate-hike-Instagram-Post-Square-958x958.png 958w, https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2023\/07\/Ameren-Illinois-rate-hike-Instagram-Post-Square-70x70.png 70w, https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2023\/07\/Ameren-Illinois-rate-hike-Instagram-Post-Square.png 1080w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a>Since <\/span><strong><a href=\"https:\/\/www.citizensutilityboard.org\/blog\/2025\/01\/21\/casework-roundup-enough-gas-utility-pushes-for-record-rate-hike\/\">we first reported<\/a><\/strong><span style=\"font-weight: 400;\"> on Ameren Illinois\u2019 gas rate-hike request in January, the utility has adjusted its rate hike. Here\u2019s a quick review:\u00a0<\/span><\/p>\n<p><strong>Ameren\u2019s Rate-hike Request:<\/strong><span style=\"font-weight: 400;\"> The company has adjusted the amount from about $134.4 million to $131.1 million. It\u2019s not unusual for a rate-hike total to be adjusted as an 11-month case proceeds before the Illinois Commerce Commission (ICC).\u00a0<\/span><\/p>\n<p><strong>Impact on Customers:<\/strong> <span style=\"font-weight: 400;\">Ameren said originally its increase would raise average monthly residential customer bills by roughly 12 to 13 percent, or $8 to $10 per month. The numbers are estimated to be similar to that, despite the decrease in the overall total of the hike.\u00a0<\/span><\/p>\n<p><strong>What Consumer Advocates says:<\/strong> <span style=\"font-weight: 400;\">CUB has uncovered about $61 million in overcharges in Ameren\u2019s proposed rate hike, which is about 46 percent of the total request. When you include recommendations from consumer advocates such as the Illinois Attorney General\u2019s Office, Illinois PIRG and Environmental Defense Fund, the reductions total about $82 million. That means the testimony of consumer advocates shows that Ameren\u2019s rate-hike request is nearly triple what the company can possibly justify.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">CUB focused on the following issues:\u00a0\u00a0\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Return on Equity.<\/strong><span style=\"font-weight: 400;\"> Ameren proposed an increase in its \u201creturn on equity\u201d (ROE)\u2014or profit rate for shareholders\u2014from about 9.44 percent to 10.7 percent. That would give the company the highest ROE among major gas utilities in Illinois. CUB argues for a more reasonable 9.45 percent ROE, which would reduce the rate hike by $29.9 million.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Capital Structure.<\/strong><span style=\"font-weight: 400;\"> CUB\u2019s expert testimony also found problems with \u201ccapital structure\u201d\u2014basically how it finances infrastructure projects. Ameren wants to raise its \u201ccommon equity ratio\u201d\u2014how much of the utility\u2019s financing comes from issuing stocks\u2014to 52 percent. CUB\u2019s testimony recommends keeping it at its current level, 50 percent, which would reduce the rate hike by another $5.8 million.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Rate-case Expense.<\/strong><span style=\"font-weight: 400;\"> Under Illinois law, utilities are allowed to recover expenses for outside lawyers and expert witnesses in rate cases. It is already offensive that Ameren customers have to pay for pro-utility lawyers and consultants who argue for increasing their bills, but adding insult to injury, CUB\u2019s testimony revealed that Ameren\u2019s accounting treatment of these costs would likely result in customers being double- or triple-charged for these fees\u2014or worse\u2014between now and Ameren\u2019s next gas rate case. Correcting this practice would reduce the rate hike by another $1.8 million. (<\/span><strong>Note:<\/strong> <span style=\"font-weight: 400;\">In Springfield, CUB is working for a reform that would bar utilities from charging customers for this and other expenses that should instead be covered by shareholders.)<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The remainder of <\/span><span style=\"font-weight: 400;\">CUB\u2019s financial adjustments related to the utility\u2019s questionable forecasts for gas sales, inflation and cash working capital, which is the amount of money Ameren has available to fund day-to-day operations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Among the findings of other advocates:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">EDF and PIRG argued for the ICC to reduce planned transmission spending by up to $84 million, because the utility failed to adequately justify its spending.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">EDF, PIRG and the Illinois Attorney General also found that Ameren frequently replaces transmission pipes, which drives up its profits and customer bills, when other, less expensive compliance measures are viable.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">EDF and PIRG recommended that the ICC reject a proposal to subsidize the use of so-called \u201crenewable natural gas.\u201d\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">EDF and PIG called on the ICC to lower the fixed monthly charge customers pay before using any gas.\u00a0<\/span><\/li>\n<\/ul>\n<p><strong>Next Steps:<\/strong> <span style=\"font-weight: 400;\">Administrative Law Judges are set to make a proposed order\u2013a recommendation of how the full ICC should rule\u2013in early October. The ICC is set to rule on the rate case by December. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Since we first reported on Ameren Illinois\u2019 gas rate-hike request in January, the utility has adjusted its rate hike. Here\u2019s a quick review:\u00a0 Ameren\u2019s Rate-hike Request: The company has adjusted the amount from about $134.4 million to $131.1 million. It\u2019s not unusual for a rate-hike total to be adjusted as an 11-month case proceeds before the Illinois Commerce Commission (ICC).\u00a0 Impact on Customers: Ameren said originally its increase would raise average monthly residential customer bills by roughly 12 to 13 percent, or $8 to $10 per month. The numbers are estimated to be similar to that, despite the decrease in the overall total of the hike.\u00a0 What Consumer Advocates says: CUB has uncovered about $61 million in overcharges in Ameren\u2019s proposed rate hike, which is about 46 percent of the total request. When you include recommendations from consumer advocates such as the Illinois Attorney General\u2019s Office, Illinois PIRG and Environmental Defense Fund, the reductions total about $82 million. That means the testimony of consumer advocates shows that Ameren\u2019s rate-hike request is nearly triple what the company can possibly justify.\u00a0 CUB focused on the following issues:\u00a0\u00a0\u00a0 Return on Equity. Ameren proposed an increase in its \u201creturn on equity\u201d (ROE)\u2014or profit rate for shareholders\u2014from about 9.44 percent to 10.7 percent. That would give the company the highest ROE among major gas utilities in Illinois. CUB argues for a more reasonable 9.45 percent ROE, which would reduce the rate hike by $29.9 million. Capital Structure. CUB\u2019s expert testimony also found problems with \u201ccapital structure\u201d\u2014basically how it finances infrastructure projects. Ameren wants to raise its \u201ccommon equity ratio\u201d\u2014how much of the utility\u2019s financing comes from issuing stocks\u2014to 52 percent. CUB\u2019s testimony recommends keeping it at its current level, 50 percent, which would reduce the rate hike by another $5.8 million. Rate-case Expense. Under Illinois law, utilities are allowed to recover expenses for outside lawyers and expert witnesses in rate cases. It is already offensive that Ameren customers have to pay for pro-utility lawyers and consultants who argue for increasing their bills, but adding insult to injury, CUB\u2019s testimony revealed that Ameren\u2019s accounting treatment of these costs would likely result in customers being double- or triple-charged for these fees\u2014or worse\u2014between now and Ameren\u2019s next gas rate case. Correcting this practice would reduce the rate hike by another $1.8 million. (Note: In Springfield, CUB is working for a reform that would bar utilities from charging customers for this and other expenses that should instead be covered by shareholders.) The remainder of CUB\u2019s financial adjustments related to the utility\u2019s questionable forecasts for gas sales, inflation and cash working capital, which is the amount of money Ameren has available to fund day-to-day operations.\u00a0 Among the findings of other advocates:\u00a0 EDF and PIRG argued for the ICC to reduce planned transmission spending by up to $84 million, because the utility failed to adequately justify its spending.\u00a0 EDF, PIRG and the Illinois Attorney General also found that Ameren frequently replaces transmission pipes, which drives up its profits and customer bills, when other, less expensive compliance measures are viable. EDF and PIRG recommended that the ICC reject a proposal to subsidize [&hellip;]<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":"","_wpscppro_dont_share_socialmedia":null,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"default","_twitter_share_type":"default","_linkedin_share_type":"default","_pinterest_share_type":"default","_linkedin_share_type_page":"","_instagram_share_type":"default","_medium_share_type":"default","_threads_share_type":"default","_google_business_share_type":"default","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[302,1751,321],"tags":[934,139,1530],"class_list":["post-43516","post","type-post","status-publish","format-standard","hentry","category-ameren","category-illinois-commerce-commission","category-rate-hike-2","tag-ameren-gas","tag-rate-hike","tag-rate-hike-request"],"cp_meta_data":{"_facebook_share_type":["default"],"_twitter_share_type":["default"],"_linkedin_share_type":["default"],"_pinterest_share_type":["default"],"_instagram_share_type":["default"],"_medium_share_type":["default"],"_threads_share_type":["default"],"_google_business_share_type":["default"],"_wpsp_custom_templates":["a:7:{s:8:\"facebook\";a:3:{s:8:\"template\";s:0:\"\";s:8:\"profiles\";a:0:{}s:9:\"is_global\";b:0;}s:7:\"twitter\";a:3:{s:8:\"template\";s:0:\"\";s:8:\"profiles\";a:0:{}s:9:\"is_global\";b:0;}s:8:\"linkedin\";a:3:{s:8:\"template\";s:0:\"\";s:8:\"profiles\";a:0:{}s:9:\"is_global\";b:0;}s:9:\"pinterest\";a:3:{s:8:\"template\";s:0:\"\";s:8:\"profiles\";a:0:{}s:9:\"is_global\";b:0;}s:9:\"instagram\";a:3:{s:8:\"template\";s:0:\"\";s:8:\"profiles\";a:0:{}s:9:\"is_global\";b:0;}s:6:\"medium\";a:3:{s:8:\"template\";s:0:\"\";s:8:\"profiles\";a:0:{}s:9:\"is_global\";b:0;}s:7:\"threads\";a:3:{s:8:\"template\";s:0:\"\";s:8:\"profiles\";a:0:{}s:9:\"is_global\";b:0;}}"],"classic-editor-remember":["classic-editor"],"_edit_lock":["1756232813:25"],"_edit_last":["25"],"_wp_page_template":["default"],"borntogive_page_header_show_hide":["2"],"borntogive_pages_title_show":["1"],"borntogive_pages_Choose_slider_display":["2"],"borntogive_pages_select_revolution_from_list":["3"],"borntogive_pages_slider_pagination":["yes"],"borntogive_pages_slider_auto_slide":["yes"],"borntogive_pages_slider_direction_arrows":["yes"],"borntogive_pages_slider_effects":["fade"],"borntogive_pages_body_bg_wide":["0"],"borntogive_pages_body_bg_repeat":["repeat"],"borntogive_pages_content_bg_wide":["0"],"borntogive_pages_content_bg_repeat":["repeat"],"borntogive_pages_social_show":["1"],"borntogive_strict_no_sidebar":["0"],"borntogive_sidebar_columns_layout":["3"],"borntogive_gallery_slider_pagination":["yes"],"borntogive_gallery_slider_auto_slide":["yes"],"borntogive_gallery_slider_direction_arrows":["yes"],"borntogive_gallery_slider_effects":["fade"],"_wpb_vc_js_status":["true"],"_wpb_vc_editor_type":["backend"],"_wpscppro_custom_social_share_image":[""],"_wpscppro_dont_share_socialmedia":["off"],"_wpsp_is_facebook_share":["off"],"_wpsp_is_twitter_share":["off"],"_wpsp_is_linkedin_share":["off"],"_wpsp_is_pinterest_share":["off"],"_selected_social_profile":["a:0:{}"],"_yoast_wpseo_primary_category":["302"],"_yoast_wpseo_content_score":["30"],"_yoast_wpseo_estimated-reading-time-minutes":["3"]},"_links":{"self":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/posts\/43516","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/comments?post=43516"}],"version-history":[{"count":1,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/posts\/43516\/revisions"}],"predecessor-version":[{"id":43517,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/posts\/43516\/revisions\/43517"}],"wp:attachment":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/media?parent=43516"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/categories?post=43516"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/tags?post=43516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}