Ameren’s $44M Overcharge Exposed by AG

  • Illinois Attorney General Kwame Raoul’s office claims Ameren’s proposed $129 million gas rate hike includes a $43.7 million overcharge to customers.
  • The AG alleges Ameren’s budgets are “poorly defined” and overstate costs without proper justification or historical data to back them up.
  • Consumer advocates are urging the Illinois Commerce Commission (ICC) to block the “unwarranted costs” before winter, citing Ameren’s history of frequent rate increases.
  • Ameren defends the hike as essential for maintaining system safety, reliability, and meeting strict federal pipeline standards.

Regulators Challenge Ameren’s Rate Hike

ILLINOIS, USA — Illinois residents are facing a potential $129 million increase in their natural gas bills, but the state’s top lawyer warns that a significant portion of the hike is an unjust overcharge. Attorney General Kwame Raoul’s office has formally challenged the proposal from utility giant Ameren, telling state regulators the company is attempting to overcharge its customers by a staggering $43.7 million.

H3: “Poorly Defined” Budgets Under Fire

In a document submitted to the Illinois Commerce Commission (ICC), the Attorney General’s office dismantled Ameren’s justification for the rate increase. The filing asserts that Ameren’s project budgets are “poorly defined,” significantly overstate actual costs, and in some cases, appear to be mere placeholders. Despite requests for details, Ameren allegedly failed to provide the necessary data, such as unit counts or cost drivers, that would connect their financial forecasts to historical spending or current conditions.

The AG’s office has officially asked the ICC to slash the $43.7 million from Ameren’s request, which would eliminate more than a third of the proposed increase and provide critical relief to households.

H3: Consumers Face Mounting Pressure

For many Illinois families, this isn’t a new battle. This marks Ameren’s fourth proposed gas rate hike in just over seven years, a pace that consumer advocates say has pushed gas bills into unaffordable territory, particularly for residents in St. Louis’ Metro East.

“With winter looming and the fallout from rising energy prices already afflicting households across Illinois, consumers are depending on state regulators to act as the strongest possible bulwark against Ameren’s profiteering,” said Sarah Moskowitz, Executive Director of the Citizens Utility Board, in a statement. The consumer group hopes the AG’s findings will encourage the ICC to scrutinize the rate hike even more intensely.

H4: Ameren Defends Its Position

Ameren maintains that the $129 million increase is vital. Brad Kleoppel, Ameren Illinois Senior Director of Gas Operations and Technical Services, argued the funds are necessary to uphold the “safety, integrity, and reliability” of the natural gas system. He stated the investments would help the company meet federal pipeline safety requirements, reduce leaks, and support a transition to cleaner energy, all while using the “lowest possible cost” methods.

H5: Community Action and a Looming Decision

As the deadline for a final decision approaches, advocacy groups are mobilizing. A “Future Energy Forum” is scheduled for Nov. 1 from 1 p.m. to 3 p.m. at East St. Louis’ Southern Mission Missionary Baptist Church. The event will provide residents with information on how to reduce their utility bills and apply for energy assistance. The final say rests with the Illinois utility regulators, who are expected to rule on the case soon, leaving consumers anxiously awaiting the outcome.

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