(WAND) — Ameren Illinois’ summer electric rate will take effect next month, raising rates for customers. Starting June 1, the rate will rise to 11 cents per kilowatt hour and remain in effect through September.
The rate is lower than last summer, but is still up 29% from the current price of electricity.
The Citizens Utility Board (CUB) said the increase is deeply concerning, especially during the summer months.
“Depending on a number of factors, including weather and individual usage, people could end up paying well over $100 more to cool their homes this summer,” CUB Director of Communications Jim Chilsen said.
Several factors are contributing to the increase, but Chilsen said higher demand on the power grid is the main cause.
“The two reasons are the proliferation of data centers, which is causing higher energy demand, and poor policy from MISO. They have a pricing methodology that unfairly compromises affordability,” Chilsen said.
MISO is the power grid operator for central and southern Illinois. Chilsen said Ameren is not making a profit from the rate increase.
“The money goes through customers’ electric bills, but it ultimately goes to big power generators. If demand goes through the roof on those hot summer days when everybody’s cranking up the air conditioner and factories are humming, you want the assurance that there will be enough power available,” Chilsen said.
CUB urged customers not to fall into bad deals with alternative suppliers because rates have increased.
“It is likely that Ameren is your best bet for utility supply,” Chilsen said.
Ameren said the temporary increase will end in October. The supply price then will reset to a lower rate through May 31, 2027.
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