1.0Citizens Utility Boardhttps://www.citizensutilityboard.orgrich600338<blockquote class="wp-embedded-content" data-secret="72Cu6A3Pyt"><a href="https://www.citizensutilityboard.org/blog/2025/08/26/update-on-amerens-gas-rate-hike-request/">Update on Ameren’s gas rate-hike request</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://www.citizensutilityboard.org/blog/2025/08/26/update-on-amerens-gas-rate-hike-request/embed/#?secret=72Cu6A3Pyt" width="600" height="338" title="“Update on Ameren’s gas rate-hike request” — Citizens Utility Board" data-secret="72Cu6A3Pyt" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script type="text/javascript"> /* <![CDATA[ */ /*! This file is auto-generated */ !function(d,l){"use strict";l.querySelector&&d.addEventListener&&"undefined"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!/[^a-zA-Z0-9]/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret="'+t.secret+'"]'),o=l.querySelectorAll('blockquote[data-secret="'+t.secret+'"]'),c=new RegExp("^https?:$","i"),i=0;i<o.length;i++)o[i].style.display="none";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute("style"),"height"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):"link"===t.message&&(r=new URL(s.getAttribute("src")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener("message",d.wp.receiveEmbedMessage,!1),l.addEventListener("DOMContentLoaded",function(){for(var e,t,s=l.querySelectorAll("iframe.wp-embedded-content"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute("data-secret"))||(t=Math.random().toString(36).substring(2,12),e.src+="#?secret="+t,e.setAttribute("data-secret",t)),e.contentWindow.postMessage({message:"ready",secret:t},"*")},!1)))}(window,document); /* ]]> */ </script> Since we first reported on Ameren Illinois’ gas rate-hike request in January, the utility has adjusted its rate hike. Here’s a quick review:  Ameren’s Rate-hike Request: The company has adjusted the amount from about $134.4 million to $131.1 million. It’s not unusual for a rate-hike total to be adjusted as an 11-month case proceeds before the Illinois Commerce Commission (ICC).  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.  What Consumer Advocates says: CUB has uncovered about $61 million in overcharges in Ameren’s 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’s Office, Illinois PIRG and Environmental Defense Fund, the reductions total about $82 million. That means the testimony of consumer advocates shows that Ameren’s rate-hike request is nearly triple what the company can possibly justify.  CUB focused on the following issues:    Return on Equity. Ameren proposed an increase in its “return on equity” (ROE)—or profit rate for shareholders—from 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’s expert testimony also found problems with “capital structure”—basically how it finances infrastructure projects. Ameren wants to raise its “common equity ratio”—how much of the utility’s financing comes from issuing stocks—to 52 percent. CUB’s 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’s testimony revealed that Ameren’s accounting treatment of these costs would likely result in customers being double- or triple-charged for these fees—or worse—between now and Ameren’s 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’s financial adjustments related to the utility’s 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.  Among the findings of other advocates:  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.  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 […]https://www.citizensutilityboard.org/wp-content/uploads/2023/07/Ameren-Illinois-rate-hike-Instagram-Post-Square.png10801080