Illinois
Electric bills set to jump for Ameren customers in Illinois this summer. Here’s how much
Electric costs for Ameren Illinois customers across the state are likely to increase around 20% this summer.
The company said that depending on usage, the monthly bill for a typical customer could increase between 18% to 22% between June and September. That translates to somewhere in the range of $37.62 to $45.98 more on monthly bills, according to the Citizens Utility Board.
CUB said that the supply charge for customers could increase to 12 cents per kilowatt hour on June 1, a 50% increase from the current rate. Ameren said that the specific supply charge, also known as the “price to compare,” will be made public the week of May 26.
On Friday, the state’s Plug In Illinois website listed the price to compare at 12.18 cents per kilowatt hour, in line with the estimates. Ameren’s current rate, charged October through May, is 8.2 cents per kilowatt hour.
Why are Ameren Illinois electric rates going up this summer?
The increase comes after Midcontinent Independent System Operator’s planning resource auction last month showed reduced capacity for electricity across the region.
Ameren said that it is required by the state of Illinois to secure its electric capacity from generators such as MISO and pass on the costs without markup.
The price for capacity makes up more than half of a typical energy bill, according to Ameren. The increase is slated to last for four months, with prices expected to drop in October when winter rates go into effect.
CUB released a statement Thursday calling on Ameren to help customers struggling to pay their bills as a result of the price increase. It put the blame on MISO for introducing a new pricing methodology – the Reliability-Based Demand Curve – that it says compromised affordability during the last auction.
CUB said that Ameren does not profit off of the increase in prices for electricity – only on delivery-side rate hikes, which this is not. Both Ameren and CUB said that the price increase highlighted the need for further help to increase resource supply in Illinois.
“Balanced solutions, including transmission, energy storage, renewables, natural gas, nuclear, energy efficiency, and demand response, are needed to provide residents and businesses with affordable and reliable energy,” Ameren said in a statement.
CUB is currently supporting a pair of bills in the Illinois General Assembly – SB2473 and HB3779 – that would expand energy efficiency across the state and help programs that can reduce the demand on the electrical grid. Sarah Moskowitz, executive director for CUB, said that people should check on their friends, family and neighbors to make sure that they keep cool during the hot summer months.
“High bills can be stressful, so we ask people across central and southern Illinois to check on neighbors, friends and family this summer to make sure nobody is taking risks by keeping their homes too hot,” Moskowitz said. “Long-term, this price spike just shows we’ve got to keep working for consumer protections for electric customers.”
Ameren recommends that customers explore options for flexible payment plans and other energy-saving incentives by logging on to amerenillinois.com/options.