Ameren customers push back against proposed natural gas rate increase during Springfield meeting

The residents, including a state senator, said they were against a potential hike, with many saying they didn’t feel customers are responsible for updating some of Ameren’s outdated infrastructure.

Ameren announced a proposal earlier this year that would effectively raise its natural gas rates about $8 to $10 a month per household, for a total of about $131.1 million.

The utility company said the money would be used to replace and upgrade aging infrastructure around the state.

Because Ameren proposed the rate hike, the Illinois Commerce Commission is required to scrutinize the proposal.

The public comment on Wednesday in Springfield, as well at a session Thursday in East St. Louis, is part of the commission’s investigation.

“We are trying to decarbonize our gas system, but we have guardrails where we’re going to advocate for sound policies for our customers that maintain affordability and reliability,” Brad Kloeppel, Ameren’s senior director of gas operations and technical services, said after Wednesday’s session.

The ICC, which also regulates utility companies’ profits, is expected to announce around November if it will accept, reject or alter Ameren’s proposal.

Ameren isn’t the only natural gas utility company asking for a rate increase. Nicor, which serves northern Illinois and far western parts of west-central Illinois, wants to raise its monthly rate by about $7.50.

Ameren and Nicor both also requested the ability to have a higher return on equity, the amount of money paid to shareholders. The ICC typically has rejected those requests.

Ameren customers and advocates who spoke Wednesday said they couldn’t afford to pay more for utilities that have gotten more expensive.

Terri Lamb, who has a daughter in nursing school whom she helps financially, said rising costs are becoming unbearable.

“Current utility costs for the two of our homes are $600 to $800 per month,” Lamb said. “And as we all know, when electricity bills are lower, gas bills are higher, which means that there’s no relief all year round. Any increase could stretch our finances to a breaking point.”

Ameren pointed out it has financial support programs for people who are struggling to pay bills, though customers in turn said those programs are paid for with profits from other customers and can be hard to apply for.

“Anyone who’s ever had to rely on said assistance or has tried to help someone else get it knows that it’s not that simple,” said Sarah Blanco, a Springfield librarian. “There are so many hoops to jump through.”

Retired lawyer Donald Hanrahan focused on Ameren’s intent to pay for infrastructure upgrades via a rate increase.

“For all these years, you (Ameren) let the infrastructure sit there and rot, I guess,” Hanrahan said. “It seems to me that if you pay for it as you go instead of taking higher profits and instead of loading up with huge debt and the interest expense of the debt, you’re a lot better off, and I don’t know why Ameren wouldn’t do that.”

State Sen. Steve McClure, R-Springfield, who also gave public comment, told the Journal-Courier that his office often gets calls from constituents about their utility bills.

“We’ve got people calling us and sending us copies of their bills where it’s, like, doubling, and they just can’t afford it,” McClure said. “So it’s a desperate plea from some people to try to preserve their home, preserve their well-being right now because they can’t afford these prices.”

Proponents weren’t absent from the meeting. Representatives of the Illinois Manufacturing Association, Springfield Growth Alliance and the Chemical Industry Council of Illinois were supportive of Ameren’s rate increase proposal.

Public comments also can be made via the Illinois Commerce Commission’s website.