The Illinois Commerce Commission (ICC) announced Wednesday that it reduced Ameren Illinois’ natural gas delivery rate request by $55.8 million.
The decision cuts Ameren’s original $128.8 million request by about 43% and lowers the company’s return on equity to 9.6%, down from the 10.7% it had sought.
“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 said the ruling followed an 11-month review that involved detailed examinations of Ameren’s filings and other supporting materials. Officials noted that the decision helps ensure oversight of utility spending and shields customers from long-term energy infrastructure costs.
The final order also requires Ameren to maintain a 3% energy burden for all customers by adjusting its low-income discount program.
Ameren Illinois Senior Director of Gas Operations and Technical Services Brad Kloeppel told WAND News that the company is conducting a thorough 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,” Kloeppel said. He noted that these storage sites allow Ameren to buy gas during lower-priced summer months and deliver it to customers during the winter, helping keep seasonal prices stable.
Ameren Illinois provides natural gas to 800,000 residential, public sector, and business customers across central and southern Illinois.
The impact on individual customer bills will vary based on energy usage and service class.
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