East Central Reporter

Ameren is facing scrutiny over increased utility bills. Consumers want answers on the skyrocketing rates. 

 Noble resident Mary Miller posted an Ameran press release on Facebook. 

“Illinois is a deregulated state and customers can take their electric supply from a third party. Ameren Illinois is a delivery-only utility. If a small commercial customer switches from a third party supplier to the Basic Generation Service provided through Ameren Illinois, their overall bill amount from Ameren Illinois will increase (because Ameren Illinois is now billing for Delivery and Supply),” the press release said. 

Ameran added that "When a small commercial customer receives electric supply from a third party, Ameren Illinois does not have visibility into what that customer is paying for supply because it is billed separately by the supplier.” 

“When a customer receives Basic Generation Service supply through Ameren Illinois, it is a pass through cost," Ameran said. "Electricity is purchased for Ameren Illinois Basic Generation Service customers by a state agency, Ameren Illinois enters into a contract to obtain that supply for our customers at that cost, and we pass those costs on to the customer, dollar for dollar, with no mark-up or profit. In June of 2022, the price of energy supply spiked due to a shortage of generation in Downstate Illinois and increased demand. Supply makes up a significant portion of the monthly bill. Rising supply prices are the primary reason why Ameren Illinois customers have seen higher monthly bills during the last 8-9 months.” 

Downstate legislators have vowed action on Ameren’s increased rates. State Sen. Terri Bryant (R-Murphysboro) is one of several Republican lawmakers seeking rate relief for downstate Ameren customers.

“They've got to heat, they've got to eat or they've got to buy their medicine, and that's really what it boils down to,” Bryant said in a press conference, according to South West Illinois News. “The rate increases are because of many factors. But to put it simply, prices are going up because of some global market pressures and capacity shortage in the region.“ 

State Sen. Chapin Rose (R-Mahomet) said the situation in downstate Illinois is dire. “Last week in Kincaid, Illinois, an entire grocery store went out of business because they couldn't pay the power bill for their coolers,” Rose said in a press conference, Chambana Sun reported. “That community is without a grocery store and I think Rep. (Dave) Severin, when he talks he's got the exact same thing happen in his district, a different place. So this is a significant crisis. It is a serious crisis. Families cannot afford what is happening to them.”

Current rate increases have led the Citizen’s Utility Board to note this winter could be the costliest in history for Ameren customers. The typical Ameren Illinois residential customer has seen a $626 annual increase in their power bill.

Ameran had sent out a press release in June 2022 explaining its costs.

“Higher energy prices (electricity and natural gas) will continue to impact monthly utility bills into the winter heating season," Ameran said. "The causes are varied but include a tight supply/demand balance, record low coal inventories and high coal prices driving increased natural gas power generation, and a rise in U.S. natural gas consumption compared to 2021. We know this is frustrating for our customers; it's frustrating for us at Ameren Illinois, too. Many people are facing challenging times, and no one wants to see higher energy bills.”