Association Intervenes in Ameren Rate Case Posted on 9/10/2009
In June, Ameren filed for a rate increase of approximately 20% for both electricity and gas delivery service. These changes could significantly increase energy delivery prices for members. The Association has decided to intervene and will work on members’ behalf to minimize any adverse affects.
Ameren has proposed eliminating the seasonal natural gas winter use restriction of no more than 5% of annual volume for AmerenCILCO and AmerenCIPS and replacing it with a temperature based rate. This will allow natural gas use on days when the day-ahead forecasted temperature is above 25 degrees Fahrenheit without incurring demand charges. If gas is used on days when the forecasted temperature is 25 degrees or below demand charges will be incurred. In addition, more uniform billing components are being pursued across the three Ameren Illinois Utilities (AIU) - CIPS, CILCO and IP.
Other potential changes specific to gas usage are CIPS GDS 4 customers will have a delivery charge instead of a demand charge. All GDS 4 and GDS 7 customers will require a dedicated phone line regardless of supply option but for GDS 2, GDS 3 and GDS 5, no dedicated line is necessary. Also, Ameren IP transport customers on GDS 2 or 3 will have a per-therm delivery charge instead of a MDCQ charge.
On the electricity side, one component of the rate case is to retain the rate limiters but hold the increase to the same percentage increase as the rest of the rates. A summary of present and proposed rate limiters along with the
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Present (¢/kWh)
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Proposed (¢/kWh)
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Percentage Increase
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AmerenIP
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$ 0.02613
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$ 0.04000
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53%
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AmerenCIPS
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$ 0.02223
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$ 0.03000
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35%
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AmerenCILCO
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$ 0.01953
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$ 0.03000
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54%
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This decision to intervene will result in a significant investment of Association resources but was based upon the mission of the organization to "represent, promote and advance the common interests of a viable grain and feed industry…"
All members are encouraged to explore the potential repercussions of this rate case. The AIU are developing a rate comparison tool to allow customers to identify the impact of the rate proposal on their specific operations. This can be found on the Ameren website in the near future. For additional information contact the Association office at 217.787.2417.
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