ICC cuts over $58 million from Ameren Illinois gas rate request

(WAND) — The Illinois Commerce Commission (ICC) cut $55.8 million from Ameren Illinois' rate request for its natural gas delivery services Wednesday.

The ICC said the decision reduces Ameren's $128.8 million request by about 43% and approves a 9.6% return on equity (ROE) a reduction from the company's requested 10.7% ROE.

"The ICC's responsibility is to balance the interests of Illinois' utilities and their consumers," said ICC Chairman Doug Scott. "We recognize that any decision impacting Illinoisans' bills is not a small one, and after careful review of Ameren's proposed investments, the Commission opted to strike excess charges and approve necessary and justified projects."

The ICC issued its decision after "closely scrutinizing" Ameren's filings, along with various other added materials, over an 11-month legal proceeding.

According to the ICC, the decision provides important oversight to restrict spending and protect ratepayers from energy infrastructure costs they might otherwise fund for decades.

The final order also directs Ameren to maintain a 3% energy burden for all customers by adjusting the utility's low-income discount.

Ameren Illinois Senior Director of Gas Operations and Technical Services Brad Kloeppel told WAND news they are conducting an in-depth review of the ICC's order.

"Over the last five years, Ameren Illinois' natural gas supply prices have declined 30%, driven in part by Ameren's purchasing and price hedging strategies, as well as the efficient operation of our underground storage fields," said Kloeppel. "These storage facilities allow Ameren Illinois to purchase gas during the summer months — when prices are typically lower — and deliver it to customers during the winter heating season. As a result, this heating season, customers will again see stable natural gas prices."

Ameren Illinois delivers natural gas to 800,000 residential, public sector, and business customers across central and southern Illinois.

The impact of the rate case decision on individual customers will vary based on service class and energy usage. More information can be found on the ICC website.

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