CHICAGO, (WAND) — On Thursday, Ameren was granted an electric rate hike of 7% less than they originally asked the Illinois Commerce Commission (ICC) for grid maintenance and improvements. The $309 million rate hike will be spread out through 2027.
Ameren had initially proposed a billion-dollar rate hike. The ICC cut the spending by more than 60%. The ICC also approved an 8.715% return equity, and the company proposed an ROE of 9.27%.
The ICC Chairman, Doug Scott, said this plan invests in the future,
"After extensive review, the Commission is confident that both Ameren and ComEd have the tools necessary to make needed investments to drive the clean energy transition and continue modernizing Illinois' electric grid. These plans are a key component to meeting the goals of CEJA and represent significant improvement in meeting its requirements," said, Scott.
The ICC said customer impact will depend on service class and energy usage.
Scott added, "The investments approved will deliver significant benefits to the utilities' customers in an affordable, cost-effective manner."
ICC Commissioner Stacey Paradis said this was not done overnight. It took over nine months of legal proceedings, multiple workshops, and discussions with stakeholders.
"Grid planning is not a one-time task. It is a dynamic, iterative process that will require continued refinement and adaptation in future grid plans," said Paradis. "The grid of the future will be shaped by emerging technologies, evolving regulatory review, and changing energy demands. To meet these challenges, the utilities, ICC staff, advocacy groups, and other stakeholders must continue to work together."
The Citizens Utility Board, fighting for Illinois consumers, sent a statement on the amended plan and rate hike:
"While we are concerned how any rate hike will impact consumers, it's a step in the right direction that the ICC has cut Ameren's wasteful spending by hundreds of millions of dollars, denied the company's unfair request for a higher profit rate for shareholders and reduced its proposed rate hike. In the face of foot-dragging by Ameren, this ICC has shown concern for affordability and reducing reckless utility spending. Of course, an increase of any kind will be difficult to bear for far too many customers who have been hit with multiple rate hikes from Ameren over the last decade. We still have a lot of work to do to secure a clean, affordable energy future for Ameren customers. Under the Climate and Equitable Jobs Act (CEJA), Ameren is required to make investments that are beneficial and affordable for customers.
CUB is committed to working with electric customers, regulators, legislators and other consumer advocates to hold Ameren accountable to that standard in the years to come."
To read more about the multi-year grid plan, click here.
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