The Missouri Public Service Commission will hold public hearings Tuesday in Cape Girardeau and Charleston about an electric rate increase requested by Ameren Missouri.

Hearings are scheduled for noon at the Osage Centre in Cape Girardeau and 6 p.m. at Charleston High School.

In addition to commissioners, representatives from Ameren and the Missouri Office of Public Counsel, which represents consumers in rate cases, are expected to attend the hearings.

In July, Ameren Missouri filed a request with the Public Service Commission seeking to hike its annual electric revenue by more than $206 million.

According to the filing, residential customers would pay about $99 more per year if the rate increase is approved.

State Sen. Doug Libla, R-Poplar Bluff, urged Southeast Missouri residents to attend the hearings and voice their views.

Libla expressed concern about the proposed rate increase.

"We have seen evidence in recent years that Ameren continues to earn more than it's authorized as a monopoly utility," the senator said in a statement.

He said Ameren seeks to raise charges on Missouri customers, who have "no other avenues" to buy electric power.

"These increases jeopardize the ability of local businesses to operate, fall most heavily on the backs of struggling families and frequently seem unnecessary," he said in a statement.

Libla added it is important rate cases are properly vetted, which includes gathering public testimony.

James Owen, acting director of the Office of Public Counsel, said Ameren has stated part of the requested rate increase would offset the loss of electric sales to the Noranda aluminum plant.

The plant in New Madrid County closed last year. It accounted for 10 percent of Ameren's electric sales, Owen said.

The St. Louis-based utility also wants the rate increase to fund upgrades to the electric infrastructure in the state and help offset higher transmission costs.

Ameren officials said last year the rate request would amount to a 7.8 percent average rate increase for electric customers.

Owen said the Public Service Commission staff has concluded Ameren is entitled to increase annual electric revenue by $52 million. The Office of Public Counsel believes an increase of $40 million in revenue would be warranted, Owen said.

Ameren has talked about the need to improve the power grid. But Owen said he has seen no details as to what needs to be upgraded.

Owen said he would encourage area residents and business owners to speak up at the hearings.

"I think this is a real effective way to get in front of the commission," he said.

The Cape Girardeau and Charleston hearings are two of about a dozen hearings the commission is scheduled to hold around the state. Several hearings have been held. The final hearing is scheduled for Jan. 30, Owen said.

The commission could make a decision by April, and any resulting rate increase could take effect in May, he said.

State Sen. Wayne Wallingford, R-Cape Girardeau, said he is pleased the commission will hold a hearing in Cape Girardeau.

"No one wants prices to increase," Wallingford said.

But he said "you are going to have rate increases" to fund utility operations.

Wallingford said business and residential utility customers want reliable power.

"We have to update our infrastructure," he said.

mbliss@semissourian.com

(573) 388-3641

Pertinent address:

1625 N. Kingshighway, Cape Girardeau, Mo.

606 S. Thorn St., Charleston, Mo.