Ameren Illinois customers may see electricity, gas rates decrease

Ameren Illinois says its customers could expect to see electricity and gas rate drops.

Under an electric service delivery plan the company plans to file on April 15, Ameren Illinois is expected to request an approximately $14 million decrease in delivery service rates for 2017, the utility said.

If approved by the Illinois Commerce Commission, it will be the fourth rate decrease in the years since the Energy Infrastructure Modernization Act was passed in 2011, which enabled Ameren Illinois to accelerate its efforts to modernize the grid and provide consumers more efficient, reliable energy delivery.

Overall, Ameren, which has 1.2 million electric customers in Illinois, is asking for a little more than a $1 billion for its service delivery charges.

An estimated savings for the typical residential customer has yet to be determined, said Marcelyn Love, an Ameren Illinois spokeswoman.

As Ameren continues to invest in infrastructure, the lower cost of financing allows the utility to decrease its delivery rate request, Love said.

“Under formula rates, the lower costs are credited back to the customers,” Love said.

Love said there are a number of factors the company is waiting for including the results of an annual electricity capacity auction conducted by the Midcontinent Independent System Operator.

Love added the annual rate request is a requirement under the grid modernization law.

“We made a long-term commitment to our customers to strengthen the power grid and deliver cost-saving enhancements and it’s working,” said Craig Nelson, senior vice president of Regulatory Affairs and Financial Services for Ameren Illinois. “When combined with expected lower electric supply costs, our customers will continue to see stable prices for an advanced energy delivery system.”

The utility said its natural gas customers could expect to save on the supply portion of their utility bill beginning this month. A nearly four-cent drop in the per-therm cost of natural gas is expected to save most customers $28 annually or $2.35 a month.

Ameren Illinois’ gas supply charges are at their lowest levels since February 2002, the utility said.

Under the grid modernization law, Ameren Illinois has installed storm-resilient utility poles, automated switches and enhanced technology. The automation allows Ameren Illinois to restore power 18 percent faster on average, the utility said. These reliability improvements are saving customers an estimated $47 million each year.

“The smart grid legislation is working exactly as designed,” Nelson said. “It’s giving us the regulatory certainty to make much-needed enhancements to an aging energy infrastructure, while providing customers with more reliable service.”

The Illinois Commerce Commission will have eight months to review and make a determination on Ameren Illinois’ electricity rate reduction request. If approved, the new lower electric delivery service rates would go into effect beginning in January 2017.

This story was originally published April 7, 2016 at 10:40 AM with the headline "Ameren Illinois customers may see electricity, gas rates decrease."