Share and Follow
SPRINGFIELD, Ill. — In a decisive move on Wednesday, the Illinois Commerce Commission (ICC) significantly reduced Ameren Illinois’ proposed increase in natural gas rates. The ICC trimmed nearly $55.8 million from the original request, slashing the proposed $128.8 million hike by almost half.
The commissioners emphasized that their decision aimed to strike a balance between the utility’s operational needs and the affordability of services for consumers.
“Our duty at the ICC is to weigh the needs of Illinois utilities against those of their consumers,” stated ICC Chairman Doug Scott. “We chose to eliminate excessive charges, approving only the projects deemed necessary and justified.”
In its ruling, the commission targeted Ameren’s transmission investment plans, which it criticized as being overly aggressive and heavily focused on replacement. Furthermore, the ICC directed Ameren to maintain a 3% energy burden for low-income customers by adjusting its discount program, adhering to a widely accepted standard of affordability.
Ameren Illinois, which provides natural gas service to 800,000 customers across central and southern Illinois, announced that it is currently evaluating the commission’s decision.
“We are conducting an in-depth review of the ICC’s order to determine how it will impact our customers and our ability to meet federal pipeline safety requirements and other critical investments to our natural gas delivery infrastructure system.” said Brad Kloeppel, Ameren’s senior director of gas operations and technical services.
Kloeppel also said that Ameren is committed to reliability and affordability, noting that their natural gas prices have dropped 30% over the past five years, saying it’s because of the company’s purchasing strategies and operations.
“As we enter the winter season, the safety and vitality of our customers depends on our ability to deliver natural gas on the coldest of days without interruption,” he said.
According to the ICC, the impact on individual bills will vary by usage and service class. Customers struggling to pay are encouraged to apply for the state’s Low-Income Home Energy Assistance Program and check their eligibility for Ameren’s low-income discount programs.