Consumer advocates are pushing back against Ameren Illinois鈥� for natural gas services that鈥檚 currently before state regulators.
The massive utility provider in January that would raise a typical customer's bill between $8 to $10 per month, or about 11% to 13%.
The watchdog groups contend the Illinois Commerce Commission, the state regulatory body, should reject at least two-thirds of the proposal.
鈥淐onsumer advocates argue that Ameren鈥檚 bid for a $134 million rate hike is unjust, unreasonable 鈥� and it's at least triple what the utility can possibly justify,鈥� said Jim Chilsen, a spokesman for the Citizens Utility Board, at a press conference Wednesday.
The proposal would amount to Ameren鈥檚 fourth rate hike request since 2018, according to consumer advocates.
Ameren serves more than , according to the utility provider whose Illinois operations are based in Collinsville.
In a statement, the company said the request will help pay for maintaining the safety, integrity and reliability of the natural gas distribution system. The proposal also "includes incentives for renewable natural gas and zonal electrification to advance Illinois' clean energy goals,鈥� said Brad Kloeppel, Ameren鈥檚 senior director of gas operations.
The watchdog groups believe Ameren鈥檚 motivation to raise prices also stems from increasing shareholder profit.
Abe Scarr, director of the Illinois Public Interest Research Group, said that even though natural gas consumption from Ameren customers has decreased by roughly 20% in the past 10 years, the company continues to replace natural gas pipelines to meet federal regulations.
鈥淚t's time for Ameren to move beyond the business as usual practices that have led to four rate hikes since 2018,鈥� Scarr said. 鈥淏y considering alternatives to new fossil fuel infrastructure, Ameren can maintain a safe system, reduce rate hikes and facilitate the transition to safer, cleaner energy.鈥�
The critics argue Ameren doesn鈥檛 need to fully replace the pipelines to meet regulations. In a statement, Ameren defended its strategy, saying it鈥檚 the only option to be compliant.
鈥淭he investments we have proposed in our reliability plan will enable us to meet strict federal pipeline safety requirements, reduce leaks, and provide reliable and affordable natural gas service for our residential and business customers,鈥� Kloeppel said. "We evaluate all available methods to maintain compliance at the lowest possible cost based on operational feasibility and industry best practices."
The affordability issues and reducing expenditures on infrastructure by Ameren are 鈥渁lso the best solutions for a healthy, livable planet,鈥� said Curt Stokes, an attorney with the Environmental Defense Fund.
鈥淓xpanding and just doubling down on investments in this natural gas distribution system is not going to get Illinois to a zero carbon economy by 2050,鈥� Stokes said.
Two years ago, state regulators dramatically curtailed utility providers rate hike requests 鈥� including Ameren鈥檚 by 50.8%. The watchdog groups said they鈥檙e optimistic to see a similar result.
鈥淚'm very confident that we will get a substantial reduction,鈥� said Eric DeBellis, an attorney for CUB. 鈥淲e don't know exactly what it will see. We'll have to see the case play out, but, as I've said, I have faith in the commission to be fair.鈥�
Consumer advocates believe the Illinois Commerce Commission should make a final ruling on the request in November.
