Ameren and the Growing Storm

More than 120 people turned out at the University of Missouri-St. Louis' student center this morning to voice their concerns to the Missouri Public Service Commission over AmerenUE's request for a 17.7% rate increase, approximately $360.7 million.

AmerenUE says the average residential customer would see an increase of six dollars a month, based on 1,000 killowat-hour usage per month.

The PSC's hearing brought out residents and elected officials alike.

Sen. Joan Bray (D-University City) was the first to speak. Bray commented that she always said, "AmerenUE was a well run company," when it came to ensuring a, "return to its investors."

Bray also warned those present that AmerenUE was not only asking for a rate increase, but to be allowed to include a fuel surcharge and environmental cost recovery in future billing. Even if the general rate increase is rejected, she said, the surcharges, which are permitted by a bill passed by the Missouri Legislature in 2005 (SB 179), may still be applied.

Approximately 45 people signed up to give sworn testimony before the committee. The board also noted that customers could submit statements by mail or through the PSC's website.

Two of the PSC Commissioners, Steve Gaw and Linward "Lin" Appling, asked questions of those testifying. Doug Healy, assistant to the chairman, also appeared as a representative of PSC Chair Jeff Davis.

The complaints were detailed. James Strawhun of Florrisant has kept an record of outages in his neighborhood since 1992. He submitted his log saying the number of incidents has increased since AmerenUE took over service.

University City Councilman Byron Price, 3rd ward, cited his own records of outages. He said opposed the increase because of service issues which he said, "Cause tremendous financial hardship, medical issues and potential loss of life."

Price criticized AmerenUE spokespeople who claimed that this year was different because the storm had been one of the "worst in history". Noting that he worked as a forecaster for Southwestern Bell in his younger days, Price received loud applause saying, "This is not the greatest storm in the history of St. Louis."

One woman wanted the PSC to consider the effect of a rate increase on the elderly and others on fixed incomes.

PSC commissioner Steve Gaw asked staff to drive out after the meeting to photograph evidence of neglected maintenance behind the home of Bethany Porter of Ferguson, who has experienced 12 outages in the past four years.

The staff of the PSC has already recommended against a rate increase saying that based on an audit of AmerenUE's books, the utility is over-earning by $136-168 million.

The PSC will continue to hold hearings and take testimony in the coming months.