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Quincy Reporter

Wednesday, May 15, 2024

Tracy on Ameren prices: ‘It's mainly downstate families that have suffered’

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State Sen. Jil Tracy (R-Quincy) along with several Republican legislators held a press conference addressing the increasing cost of energy. | Courtesy photo

State Sen. Jil Tracy (R-Quincy) along with several Republican legislators held a press conference addressing the increasing cost of energy. | Courtesy photo

State Sen. Jil Tracy (R-Quincy) is seeking relief for downstate families who find themselves paying more than double the price they paid last year for electric service provided by Ameren. 

Tracy spoke at a press conference along with other lawmakers seeking $200 million in rate relief as well as other reforms to bring the cost of energy down. 

“It's mainly downstate families that have suffered, and perhaps the governor and our colleagues in the northern part of the state aren't aware of what we're suffering,” Tracy said at the press conference. “We want to make that loud and clear, especially by this press conference, but these folks are suffering every day. They look at whether they can buy food or put gas or gas in their car because of inflation or provide the necessary heat. You ask people what their temperatures are set right now in their homes. They're about 62 degrees is what I've been told by people that can't pay them. And so we've got to listen to this. It is a crisis.”

Tracy is pushing a legislative fix. She is sponsoring two bills meant to resolve the crisis. Senate Bill 1548 will cut regulations barring new power plants from coming online. Senate Bill 1547 creates the Power Grid Task Force which will set up a team of lawmakers to inspect the state’s energy policy and the real effects it is having on ratepayers, WICS ABC Newschannel 20 reported.

The Citizen’s Utility Board (CUB) noted the rate hike earlier this year. The current rate is 116% higher than last year. “Ameren Illinois, the electric utility in Central and Southern Illinois, is only responsible for delivery and not supply. Thus, it does not profit off the supply portion of bills – Ameren simply passes along what they pay for supply, with no markup,” the CUB said.

The CUB cited several reasons for the price hike. "Natural gas prices have been at extremely high levels for more than a year because of multiple factors, including, most recently, the Russian invasion of Ukraine. The high gas prices have now led to high electricity prices–because natural gas is often used to generate power."

The rate increase led the CUB to note this winter could be the costliest in history for Ameren customers. The typical Ameren Illinois residential customer has seen a $626 annual increase in their power bill.

 “Higher energy prices (electricity and natural gas) will continue to impact monthly utility bills into the winter heating season. The causes are varied but include a tight supply/demand balance, record low coal inventories and high coal prices driving increased natural gas power generation, and a rise in U.S. natural gas consumption compared to 2021,” Ameren said in June 2022 when prices started rising. “We know this is frustrating for our customers; it's frustrating for us at Ameren Illinois, too.  Many people are facing challenging times, and no one wants to see higher energy bills.”

Ameren has filed paperwork to push power bills even higher, which saw immediate pushback from the CUB. “In one month, Ameren Illinois has filed for a $160.4 million gas rate hike and a four-year $435.6 million electric increase, and they couldn’t have come at a worse time,” CUB Executive Director David Kolata said in a press release. "This is awful news for Ameren customers who already were suffering under some of the highest electric and gas supply prices in Illinois history as well as earlier Ameren rate hikes. CUB will do a thorough review of these rate cases, and we will challenge every penny Ameren can't justify."

Radio host Corey Hall, a Saint Elmo resident, took to Facebook to decry the situation. “Apparently having working lights and heat in Illinois is unacceptable and we should all be sitting in the dark and cold,” Hall said, according to South Central Reporter. “Rates are the highest they’ve ever been, with a massive recent increase, and now they want me to pay more??!!”

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