CHICAGO, Feb. 16, 2018 /PRNewswire-USNewswire/ -- Ameren
Illinois has proposed a $46.6 million
natural gas rate hike. CUB is reviewing the increase, and we will
fight every nickel the company can't justify. While we continue to
analyze the proposed increase, we are pleased that Ameren is taking
into consideration the change in the corporate tax rate and has
committed to spending on energy efficiency programs. However, we
are concerned that Ameren is asking for a high 10.3 percent Return
on Equity (ROE), or profit rate for shareholders.
Background:
- On Jan. 31, Ameren requested a $46.6 million natural gas rate hike. Ameren
reportedly estimates that the typical customer using 745 therms
annually will pay on average about 24
cents per month more on the delivery part of their
bill.
- The filing takes into consideration the decrease in the federal
corporate income tax rate, from 35 percent to 21 percent, which had
the effect of reducing the rate request by $24 million. (It would have been $24 million more if not for the tax rate
reduction.)
- The company is requesting a 10.3 percent Return on Equity
(ROE), or profit rate for shareholders. Ameren's current ROE
is 9.6 percent.
- Ameren has committed to spending $21
million over the next four years on low- and moderate-income
energy efficiency programs.
- This increase will impact delivery rates, which take up about a
third to a half of gas bills. That's what Ameren charges customers
to cover the costs of delivering gas to homes—plus a
profit.
Created by the Illinois Legislature, CUB opened its doors in
1984 to represent the interests of residential and small-business
utility customers. Since then, the nonprofit utility watchdog group
has saved consumers more than $20
billion by helping to block rate hikes and secure refunds.
For more details, call CUB's Consumer Hotline, 1-800-669-5556, or
visit CUB's award-winning website,
www.CitizensUtilityBoard.org.
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content:http://www.prnewswire.com/news-releases/statement-by-cub-executive-director-david-kolata-alerting-ameren-illinois-customers-to-proposed-gas-rate-hike-300600364.html
SOURCE Citizens Utility Board