The Missouri Public Service Commission (PSC) has approved a significant reduction in Ameren‘s requested general rate increase, from $316 million to $140 million, following the intervention of the Consumers Council. The decision, issued on June 14, 2023, came after numerous testimonies from consumers during local public hearings, who shared their struggles with high electric bills, forcing them to make tough choices between utilities and other essentials like food and medication.
In August 2022, Ameren, a leading provider of power in the region, sought a rate hike of $316 million for electric service. The move triggered an intervention by the Consumers Council, which sought to protect the interests of Missouri consumers, particularly those on low and moderate incomes. The case was led by John Coffman of the Utility Consumer Council, with Jackie Hutchinson, Director of Advocacy, providing expert witness testimony.
Despite the rate increase, the fixed customer charge will remain at $9.00 per month. The PSC cited Hutchinson’s testimony, asserting that “customers cannot avoid paying the customer charge because it is a fixed charge, and is not dependent on energy usage or demand. Higher customer charges negatively affect a customer’s ability to lower their utility bill through conservation of energy.”
In a bid to support low-income customers, the Keeping Current and Keeping Cool budget, which aids in maintaining affordability, will receive a boost of approximately $4.25 million, funded equally by customer contributions and Ameren’s shareholders.
Ameren has also pledged to meet with the Low-Income Collaborative Group to discuss ways to reduce legal disconnections in areas with high percentages of involuntary disconnections. This move follows a zip code disconnection analysis by the Consumers Council, which showed that areas with a larger population of non-white residents faced a higher rate of disconnections.
Furthermore, Ameren will establish a Rehousing Program with an annual budget of $500,000, aimed at assisting previously unhoused individuals. Funding for this initiative will be provided equally by customers and shareholders. In addition, the Critical Medical Needs Program, supporting those with serious medical conditions, will see its budget increase to $500,000 annually, again, funded 50% by customers and 50% by shareholders.
The Consumers Council expressed its gratitude to its numerous collaborators and donors, specifically recognizing the Missouri Foundation for Health for its financial support in the Ameren case. Other collaborators acknowledged include The Sierra Club, Homes for All St Louis, Missouri Veterans Endeavor, Metropolitan Congregations United, and EHOC- StL.
The approved reduction in Ameren’s rate hike is seen as a significant win for consumers in Missouri, especially those who are already struggling financially, and a testament to the critical role of advocacy groups like the Consumers Council.
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