Witnesses attack AmerenUE

AmerenUE took a verbal pounding over service issues and its request to impose dramatically higher electric rates Thursday night during a public hearing conducted by the Missouri Public Service Commission.

While business leaders from Cape Girardeau and Dexter detailed the damage higher rates would cause their bottom lines, civic leaders and members of the public focused on poor response to outages and other service issues. The utility had few defenders. Anyone with something nice to say about the utility company generally added their own complaints to the list of shortcomings.

The hearing, a video conference linking the 50 attendees Glenn Auditorium on the Southeast Missouri State University campus with the Dexter Armory and the PSC's hearing chamber in Jefferson City, was called to gain public reaction to Ameren's request for $360 million in additional revenue. Ameren filed the request in July. The PSC has until June to decide whether to grant some or all of the increase or accept a staff audit arguing for a rate cut of up to $168 million.

Not all customers would be treated equally under the proposed rate increase. While residential customers would see costs rise 10 percent, the largest industrial users are pegged for a 43 percent increase.

"The sheer effrontery of this rate increase would be comical if not for the severe economic impact," said Bill Hinckley, plant manager of BioKyowa in Cape Girardeau. Hinkley testified that the amino-acid manufacturer uses $1.8 million worth of electricity annually. If approved in full, the rate increase would cost the company $800,000.

Each of the witnesses testified under oath before an administrative hearing officer. The hearing was monitored by attorneys for the PSC staff. Ameren had an attorney on hand in Jefferson City and local representatives, who made no comments.

The attorney representing Ameren took part in a question period before the testimony and assured audiences in the two locations that the rate request does not include any money to pay for damages caused by the collapse of a reservoir at the Taum Sauk hydroelectric plant. Jim Fischer, the attorney, also said the rate increase doesn't include any money to rebuild the reservoir.

Several people who testified from Dexter cited power outages and power surges as constant headaches.

Carolyn Nichols-Johnson of Dexter said the power outages are especially prevalent in the summer when storms move through the area.

Ameren's storm responses have come under heavy criticism in the St. Louis area, where hundreds of thousands of customers lost power in summer storms and again after a winter storm Dec. 1. AmerenUE on Thursday gave the PSC its plan to improve reliability during severe storms.

Dexter residents complained that crews from Southeast Missouri are moved to urban areas when problems strike, aggravating local problems.

Economic impact

Cape Girardeau Mayor Jay Knudtson echoed those criticisms as he attacked the proposed rate increase and Ameren's service record. The proposed increases, Knudtson said, could severely damage Cape Girardeau's competitive position as it seeks to attract and retain industry.

After an Aug. 19 storm, Knudtson testified, more than 1,000 customers were left without power in northeast Cape Girardeau. "There was a lack of communication and coordination that clearly represents a breakdown," Knudtson said.

Cape Girardeau residents are patient, Knudtson said. If they are told a problem will be fixed in a set period of time, "they won't like it, but they will plan for it." While individual crews worked diligently, he said, the utility overall has been responsible for "a steady decline in Ameren's presence in the community and response to service needs."

Poor service shouldn't be viewed as a rationale for the rate increase, Knudtson said. "They need to re-establish a relationship with the community they serve. They are not performing at an acceptable level, and I have seen no evidence or plan that their service will improve."

In addition to PSC staff and Ameren representatives, Lewis Mills, director of the Office of Public Counsel, also attended the Cape Girardeau hearing. Mills' office is the consumer advocate in utility rate cases. After the hearing, he said he expects Ameren will be ordered to cut rates rather than given a boost.

"I can't see how the commission in good conscience can ignore" the testimony and staff audit, he said. "You don't reward a utility for not giving good service."

rkeller@semissourian.com

335-6611, extension 126