Public hearings over Ameren rate increase request coming up this week

Before the Missouri Public Service Commission begins evidentiary hearings in April, it will sponsor of series of public hearings this week allowing customers to ask questions about Ameren Missouri's September request for a rate increase.

While the meetings closest to Cape Girardeau are in Dexter, Mo., and Hayti, Mo., customers can submit written questions and comments to the commission.

Last year Ameren filed a request for an 11 percent increase to electric rates in all rate classes, amounting to $263 million annually.

Lisa A. Manzo, communications executive with Ameren, said the increase is not in anticipation of future projects but is a reimbursement for previous work. Under Missouri law, she said, Ameren and other investor-owned utilities must first spend money on a project and have that project operational and benefiting customers before it can seek reimbursement.

Manzo said the $263 million increase will cover expenses for a variety of improvements and projects, with the largest being new clean-air filtration systems at the company's Sioux, Mo., plant. The systems, also known as scrubbers, remove up to 45,000 tons of sulfur dioxide annually from plant emissions, she said. The installation of the scrubbers was in response to environmental regulations.

If the commission grants the rate increase, Ameren estimates the average residential customer will pay an additional $9.30 a month, based on 1,100 kilowatt-hours.

Tausha Colclasure of Cape Girardeau said in the current economic climate, an 11 percent increase is quite a bit. She's off from working with the autistic as she prepares to have back surgery. Making her fixed income meet the needs of her household is tough.

"The increase is upsetting. Ameren chews up a lot of my money," she said. "A dollar doesn't seem to stretch as far as it used to."

While the estimated average increase is a little more than $9, Colclasure's bill typically runs about $186 a month, amounting to a $20 increase. She sees that in terms of items and services she and her family need.

"That's a copay on medicine, doctor's visits. That's gas," she said.

Colclasure said it seems like Ameren is always asking for a rate increase. The company received a $226 million increase in May, adding about $9 a month to the average residential bill.

Manzo said Ameren is sensitive to customer concerns about the increase and offers a variety of assistance programs. She also said the company works hard to keep its operating costs down and has been reducing costs through separation agreements, management wage freezes and giving each project careful consideration.

"We look at projects and see what we can postpone and do later without sacrificing safety and reliability," she said.

Ameren is also asking the commission for permission to continue its fuel adjustment clause, which allows the company to add or subtract from customer bills as fuel costs fluctuate. Manzo said the cost of fuel, especially coal, continues to rise, meaning a surcharge can be added to the monthly bill. In the event of lower fuel costs, a credit will be issued.

"From October 2009 to January 2010 we gave customers money back," she said. Ameren does not profit from these adjustments, she said.

The hearing in Dexter will be at noon Tuesday at the National Guard Armory, and Hayti's will be at 6 p.m. Tuesday at the high school.

Calls to the public service commission for more information about the proceedings and the increase request were not returned.

Ameren has about 25,000 electric customers in Cape Girardeau County.

Customers unable to attend may submit comments to the Office of Public Counsel at P.O. Box 2230, Jefferson City, MO 65102 or via e-mail at opcservice@ded.mo.gov, or to the Missouri Public Service Commission at P.O. Box 360 Jefferson City, MO 65102 or via e-mail pscinfo@psc.mo.gov.

cbartholomew@semissourian.com

243-8600

Pertinent address:

1702 Highway 114 East, Dexter, MO

400 N. Fourth St., Hayti, MO