T&D World Magazine

Ameren Illinois Asserts that ICC's Cuts Could Harm Modernization

The Illinois Commerce Commission ordered a cut of US$48.1 million, or 5.6%, in Ameren Illinois revenue and approved new rates reflecting the cut. The cut falls under a new state law, the Energy Infrastructure and Modernization Act, which links allowable rates to a utility's performance. A spokesperson for Ameren Illinois said the utility will seek a rehearing, based partly on the fact that two commissioners dissented. Commissioners Lula Ford and Erin O'Connell-Diaz argued the order “did not comply with the new mandates in the law,” the ICC stated.

Ameren Illinois proposed a revenue cut of $19.3 million from current revenue, then increased the proposed cut to $19.9 million. The commission approved an annual overall rate of return of 8.86%, including a return on common equity of 10.05%.

Consumer advocate group Citizens Utility Board (CUB) supported the ICC's ruling. “A first step in building a smarter grid that benefits Illinois consumers is making sure they don't pay inflated rates,” said a CUB spokesperson. The cut affects the amount customers pay to have power delivered to their homes. Those charges amount to 33% of the bill, with the cost of power as the remainder of the bill. CUB had advocated for a rate cut of $54.5 million.

For more information, visit www.icc.illinois.gov.

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