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Ameren customers angered with rate increase proposal

BY JOHN D. HOMAN, THE SOUTHERN

Wednesday, February 6, 2008 11:24 PM CST

MARION - A hostile crowd of more than 200 gathered at the Williamson County Pavilion on Wednesday evening to voice displeasure with AmerenCIPS officials for proposing a rate increase of more than 4 percent per month for all electric users and 7 percent for natural gas users.

Craig Nelson, vice president of regulatory affairs and financial services for Ameren, presented a slideshow outlining the utility's added costs. He said in order for the company to continue to provide a high level of customer satisfaction, a rate increase is needed. Nelson managed to avoid bodily harm, but did take quite a tongue lashing from some residents.

Ameren's proposed increase is minuscule by comparison to last year's rate hike, but area residents made it clear they aren't agreeable to a second increase so soon.

Ameren officials are asking for $247 million more annually to help cover rising replacement costs for items such as utility grade wire, poles and plastic pipe. They claim the added revenue would not go toward offsetting the costs of rebates and refunds tied to this year's rate relief settlement.

The Illinois Commerce Commission, which ultimately will decide to accept or reject Ameren's proposal, hosted the public hearing - the first of six statewide and the only hearing in the region.

State Rep. John Bradley, D-Marion, who asked the ICC to make Marion one of its stops, was not impressed with Nelson's presentation. He said another rate increase for the utility is unconscionable given that Ameren only had to pay back $150 million in rebates to its customers as part of the $1 billion agreement forged with the legislature last year.

"They say they're suffering, but they ought to see the suffering put on the people of Southern Illinois," Bradley said. "I am demanding that the ICC reject this rate increase and impose sanctions against them. Stop this before it goes any further."

Forty-five residents signed up to speak, including a few Ameren employees.

Amy Paschedag of Edwardsville, speaking on behalf of the AARP, said she was "alarmed" by the utility's request for a rate increase.

"We cannot afford to pay these skyrocketing bills," she said. "People are being forced to choose between paying their electric bill and buying food and prescription drugs. We hope the ICC does the right thing and rejects Ameren's request."

Rich Whitney of Carbondale stressed that the utility had routinely shown profits even before a 10-year rate freeze was removed last year.

Ed Streamas of Marion described himself as a "lowly retiree" and asked Ameren officials to conduct a demographic study of Southern Illinois and explain how residents could continue to afford such increases based on their household income.

john.homan@thesouthern.com / 351-5805

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Melissa wrote on Feb 14, 2008 8:30 PM:

" I do not care what they need the money for we shouldnt have to pay for it, it is part of running a business and they already charge us too much. I seriously do not believe it is not to replace what they had to pay out in refunds, which my the way I had to send their checks back 3 times to get one the bank would cash. "

Conservation pays wrote on Feb 14, 2008 10:03 AM:

" Conserve people! Conserve! Don't keep your furnace set on 75 in the winter and 65 in the summer. Find a happy medium and help the environment all at the same time. I don't like Ameren any more than the next guy, but we STILL have among the lowest utility rates in the nation. And no, I am not an Ameren employee, so don't even start that. "

gmon wrote on Feb 13, 2008 4:21 PM:

" I wonder if this latest storm will give Ameren more ammo to come after our pocketbooks? I can just hear it now, "Well... if we'd gotten that 4% increase when we asked for it, we could have had employees on standby as soon as the weather started getting bad and would have had this mess already cleaned up..." "

Anon wrote on Feb 13, 2008 2:46 PM:

" Re: Tina: And evidently YOU don't even READ a post before spewing off at the keyboard. First of all, I am retired and my income is about 700 per month, hardly working for Ameren! Second, if ya drain the water from your pipes they aren't going to "blown out" on you. At least in the almost 3 winters this house has sat empty with NO heat on, they haven't, but with trailer trash, things are pretty cheaply made, so those pipes probably will get "blown". I wasn't even referring to you as living beyond your means, but since you took such an offense, maybe there is something to it after all, ya think? Some people have 2 kids and will build a 5 br house, WHY?? That's my example of NOT living within your means. But as they say, it takes all kinds to make the world go round.. "

WSR wrote on Feb 13, 2008 2:44 PM:

" I am not complaining nor am I condoning the rate increase. I am not familar enough with the situation to do that. I am here to commend all the Ameren employees who have been working in sub-freezing weather and inclimate conditions to keep our power on during this winter storm. I have never in my 60 years of living seen so many Ameren trucks and employees out working all hours of the night. We live in Marion and were without power for only four hours last night.It seems the crews from all over the state were called in to assist. I realize they are doing their jobs and the overtime pay is an incentive. Still...bottom line is they are all doing a good job to make sure we have heat. Kudos guys for a job well done. Let's all give credit where credit is due and stop complaining! BTW...I am not an Ameren employee. "

Tina wrote on Feb 12, 2008 9:16 AM:

" To Anon: You missed the total point of my post--why is a house that does not have anything running in it have a utility bill higher than the place where we are acually living. As far as living within our means, our "house" in Illinois is a manufactured home(aka trailor) that cost $42 thousand dollars. I hardly think that is living over anyone's means. We left the power on because our move to Wisconsin was only temporary and it didn't make sense to unhook everything and have the pipes blown out and all that done when we would be returning shortly.
Anon, you must be well off or work for Ameren too! You won't find any symphathy here for being an Ameren lover so find some place else to spew your comments. "

xxx wrote on Feb 11, 2008 6:19 PM:

" Ameren employee you bet their is a lot of complainers out there. Not everybody makes $33.00 per hour like you. You make more in 2 1/2 hours than the average person earns all day. If it was not for the IBEW you would get what you are worth maybe $10.00 per hour. Then you would be crying along with the rest of us. "

Ameren Employee wrote on Feb 11, 2008 1:41 PM:

" Good golly! There sure are a lot of complainers. How about passing around some thanks for all those who work in the elements to keep and maintain great electrical service. You know, it's not like you are living in Russia or some third world country as you get the best electrical and gas service that can be had anywhere on this planet! Most of you complain about everything and, after a while, it GETS OLD!! Deal with it and find something else to worry about because this issue is done! "

I just have 1 Q wrote on Feb 11, 2008 11:16 AM:

" Just a little question. Howcome before the big rate increase we paid higher in the summer and less over the winter and now it switched? No one seems to be able to tell us why.Could it be they "conned" so many of us into electric heat that they stand to make more money off us then they did from summer AC. The Democrats are for the people not big business. What a crock. Get out and vote in Nov. People, take back the power from Chicago, send them packing. Maybe then we can help ourselves. "

fed up wrote on Feb 11, 2008 9:45 AM:

" Okay Ameren employee's why do you have five hugh bulbs on day and night? How much does Ameren pay you? We use electric and gas rarely in our home. Our family wears sweaters and we keep all lights off at night. Most of our block does except for the Ameren employee who blast his. I don't know what Ameren is thinking but it is pretty scary when your electric bill is getting up to where your mortgate payment is. Ameren start letting some of your employees go. We have done everything we can in our home. Actually our home is now a house because a home is some place where you can be comfortable in. Our home is cold in the winter. Lights off. Maybe you should start turning your lights off in your million dollar homes. I know most of us wish we could afford solar panels but we can't. I know if I had the chance I would sell my property and move some place where Ameren is not. I would like to know why so many employees of Ameren use more lights then our whole neighborhood. I am tired, as all of the rest of us are, of Ameren and their whinning. Clean your house first before you try and cause all of us to lose our homes because of electric. "

Anon wrote on Feb 11, 2008 9:00 AM:

" Re: Observation: Are you sure you are not observing employees of Verizon 'dialing' and not employees of Ameren? I can't imagine an employee of Ameren dialing anything in their line of work. And to the people living in Wisconsin.. why didn't you just cut the gas off? My moms old house has both gas & elec. We have the elec on & the gas off. We drained all the water from the pipes. I dry clothes there maybe 6 times a month and there are lights on every now and again. The bill there ranges fron 8 to 11 dollars a month. Seems silly to power up an empty house, but its your dollars and they are your to spend. I live in a 2 br apt. have 3 computers, 2 of which are almost always on, and my winter bill has never went over 125 a month. Same can be said in the summer, running a 110 in the window. Live within your means! I survive on less than 700 a month and have money left over. Some of you people have huge houses and are so in debt, I hardly feel sorry for any of you whiners! "

Lynn McCombs wrote on Feb 11, 2008 8:54 AM:

" I wonder if any thought has been given to socializing our electric service. Water is city. Electric should be too. "

Observation wrote on Feb 10, 2008 7:14 PM:

" Perhaps the employees of Ameren could sharpen up their work ethics to save their beloved company some of the expenses that they experience. I have witnessed, on more than one occasion, three to four of their fine, outstanding technicians standing around dialing and redialing with no luck due to their old, outdated equipment. To cut expenses, maybe just have ONE employee stand around to listen to the tones as they fail! Maybe this is the union mentality, maybe it is comfort in numbers. Either way, besides being comical, it is wasteful to spend time in such a way. "

Tina wrote on Feb 10, 2008 1:46 PM:

" Okay Ameren, please answer this question. What is your base rate that you are charging just for the priviledge of having your gas and electric? It must be outrageous because our house in southern Illinois, where no one is living and everything is turned off and unplugged, had an electric/gas bill last month of $122.50! That is with nothing running except the thermastat being set at 55 to keep the pipes from freezing. In contrast our electric bill in Wisconsin where we are presenting living and where the temperature routinely runs below 0 outside, was $110.00 last month, with three people here and everything running including a refrigerator, computer, television, etc. Please tell me how you explain that? "

Vicki wrote on Feb 10, 2008 7:06 AM:

" I am angered with this inconsiderate group of "businessmen/women". How they can actually have the "bravery" to actually stand in front of this small but mighty group representing this area and actually with a good conscious, ask for more money. How can they, knowing that the figures are out in black and white, want more. How can they sit there with their homes nice and toasty and plenty of food on their table ask for more money all the while many struggling to keep their homes warm and still be able to put food on the table for their children and families. They should be ashamed and want to be in hiding for being so greedy. How, God, how can they even take the time to go to the meeting and still go home with no regrets of wanting so much more. I just don't understand their greed.

Do like the rest and give something up to help....give up a mercedes so many can heat their homes and eat that week. "

B.Wildered wrote on Feb 7, 2008 5:54 PM:

" Ameren must think Southern Illinois' residents must take home salary ranges in the high five and six digit ranges, not unlike most of the senior management and execs throughout Ameren and their associated companies. How about they whittle down some of those bloated salaries to more realistic levels for the actual work those folks in suits perform each day? Im sure they would make up quite a bit of whatever defecit they think they are experiencing that would cause them to cast another rate increase upon us so soon after the devastating one last year at this time!
I agree with the other comments above--re-evaluate the executive branch, its perks, salaries, and poor performers and trim that pork! Then see where they are at. Oh, and don't forget to start at the very, very top, Mr. CEO! "

Guest Speaker wrote on Feb 7, 2008 5:26 PM:

" Feel free to google Mr. Larry Ivory as he evidently has numerous ties with the current Gov. Blagojevich. It appears that his elevation in the business community coincides with this Governor being elected to office. As for being the director of Black Chamber of Commerce, that pans out. However, if you look at that particular organization, they have received over $200,000 from Exxon in various endeavors among other power/fuel companies. It is quite humorous to think these companies think we can't tie their associations and vested interests together! If you recall, Mr. Ivory stated numerous times that we needed to be educated before making decisions and look at the whole picture. I couldn't agree more!! "

Fact Check wrote on Feb 7, 2008 2:45 PM:

" This week, the ICC approved a very similar rate hike for a provider in the Chicago area. Peoples Gas had requested $102.5 million but the ICC slashed it to a measly $71 million. Among the issues argued were familiar sounding proposals such as - energy efficiency incentives/rebates, balancing baad debt accounts, and the all famous "decouple" or separate the utilites fixed delivery cost recovery from the amount of gas it sells. Folks, this is just a formality these boys are going through. They put such outlandish items such as 'decoupler' so as to have items that can be removed from the bargaining table while they slide through the underlying trojan horse of their argument. Essentially, they are going to pass a substantial increase and the ICC is going to counter that they were able to cut it back so many millions. It's a very transparent game, but they act like none of us will ever figure it out! I'm just glad I don't work for Ameren or have anyone I care about working for them as I can only imagine the shame they must fee. "

Your Avg Consumer wrote on Feb 7, 2008 1:51 PM:

" Of course the ICC will let Ameren have their way. Why would this time be any different? The ICC has failed us every time before. This time will be no different. I honestly don't know how some people are able to pay their bills. I really don't. My household is fortunate enough to have two average steady incomes, but between the high gas prices and even higher utility rates, we are basically living paycheck to paycheck. I don't know how some people survive. I really think it's going to take people freezing to death and dying of heat strokes before Ameren finally backs off. "

Had Enough? wrote on Feb 7, 2008 11:41 AM:

" Sorry I missed Ameren's meeting last night in Marion, but it was Ash Wednesday and I had church.

Interesting scheduleing, wasn't it?

Well, after paying my current bill, I will be AHEAD $940! Now how many of you give your creditors an EXTRA $900 to "hold" for you??

Where are our legislators??! "

pj wrote on Feb 7, 2008 10:33 AM:

" WHAT electric officials don't tell you or share with you is the budget....DO they reallllly NEED to advertise? Do the execs and wives REALLLLLY need a high roller week in Boca Raton in Feb? Do they REALLLY NEED layers of bureacracies, lush offices, paid vehicles, I THINK NOT....so don't say they need money to replace poles, tadah ,tadah IT IS ALL A FACADE to line their own pockets a bit thicker.... "

KJ HAMILL wrote on Feb 7, 2008 10:28 AM:

" Ameren needs to get off their high spending horse and see where the rest of the world is. They have routinely shown profits. Where are these profits going and why are WE being made to choose beteen our prescriptions, food and staying warm. ICC needs to do their job and listen to the people of the state and not the ones lining their pockets with the profits coninually showen. "

A. Sane Voice wrote on Feb 7, 2008 9:43 AM:

" I'm glad to see all the people who showed up last night and spoke out. I feel though that the ICC will give Ameren there way in the end. A gentleman last night asked "How much is the Chairman was paid last year? That answer sir is not available, but I can tell you this Mr Gary L Rainwater the President of Ameren holds 62,984 shares of stock in them. Mr. Charles W. Mueller another Officer of the company holds 51,572 shares. As of this writing Ameren stock is going for $44.75, a share. You do the math and see what kind of financial share they have in this. If you find there financial statements you will see that Ameren is projecting a down year for 2008 but profits after this year are projected to be even higher then before the "needed" rate increases.It's also reported by Ameren that they are at "Junk Bond" status.The last change in there status was 11/1/06 when the research firm Bank of America Sec. downgraded them to a hold or neutral. Note this was long before the fight over rates. Keep fighting the good fight people. "

Ed wrote on Feb 7, 2008 6:58 AM:

" Ameren can start doing some cost cutting in their own office! I have done all the cost cutting my familey can do, short of cutting ameren power lines from our house. My familey income will not stretch any more!! "

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