No Fixed-Fee Increases for Ameren Missouri Residential Customers

Ameren proposed a $316 million increase; received $140 million
Contact

Edward Smith, edward.smith@sierraclub.org 

St. Louis, MO – Today, the Missouri Public Service Commission (PSC) approved an agreement between interveners and Ameren Missouri to increase electric rates by $140 million annually, down from the $316 million the state’s largest monopoly electric utility applied for last year. 

The PSC also ordered Ameren to identify avoided costs at its Sioux and Labadie coal-burning power plants if either plant is required to retire earlier than Ameren’s current planning. If Ameren decides to retire these facilities early in its future energy plans, then the utility must provide the PSC with estimates on avoided costs. Ameren’s Labadie plant is the second deadliest in the country and faces a host of environmental controls.  

The settlement also provided large boosts for low-income customers, including no increase in the fixed-fee on electric bills, increased funding for low-income utility assistance, and a goal of decreasing disconnections in zip codes with the highest percentage of disconnection for late payment. 

From the PSC’s news release: 

Under the agreement approved by the Commission, Ameren Missouri’s Keeping Current and Keeping Cool budget will increase to approximately $4.25 million with funding provided 50% from customers and 50% from the Company. Ameren Missouri has agreed to meet, as part of the Low-Income Collaborative Group, to discuss methods for legally reducing disconnections in zip codes with the highest percentage of customers being involuntarily disconnected. 

Under the agreement, the Keeping Current/Keeping Cool program will undergo some changes such as: 1) increase the Keeping Cool amount seniors receive to $50; and 2) increase flexibility for enrollment criteria by allowing participants with up to two weeks of a past due balance. 

Also under the agreement, the Rehousing Program budget and the Critical Needs Program budget will be $500,000 each annually, with funding provided 50% from customers and 50% from the Company. In addition, the Low-Income Weatherization Program budget will be approximately $1.2 million annually. 

The full report and order can be found here

Statement from Jenn DeRose, Missouri Campaign Representative for Sierra Club’s Beyond Coal Campaign: 

“Today’s outcome was made possible by the thousands of customers who spoke out on the unnecessary rate increases in the face of mounting utility disconnections and record stock prices for Ameren shareholders. It goes to show that everyday folks can make a difference, and that if you’re an Ameren customer, that your voice matters in processes like public hearings. People have the power to make a difference, even when opposing a multi-billion dollar utility. I’m thankful for our community partners, including but not limited to Homes for All St. Louis, Consumers Council of Missouri, Missouri Veterans Endeavor, and Metropolitan Congregations United.

“The PSC’s order protects customers from the expensive repairs beyond operation and maintenance that Ameren is currently planning at Labadie. Ameren needs to pivot now and plan for the retirement of this massive polluting plant, both for the benefit of its customers' wallets and health and our shared environment.”

About the Sierra Club

The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.