A packed room near the Missouri Capitol was the setting for a public hearing on Thursday, where Missouri residents gathered to express their concerns about Ameren Missouri’s proposed electric rate hike. The utility company is seeking an average rate increase of $17.45 per month for its customers, amounting to a 15.77% rise in electricity rates. This would result in an additional $446 million in revenue for Ameren every year. The emotional reactions from residents during the hearing showed the impact such an increase could have on families and communities across the state.
Lindsey Phoenix, a public attorney from Jefferson City, told members of the Missouri Public Service Commission (PSC) that she felt the increase was unjustified. Speaking during the long hearing, she said, “Here I am spending my lunch hour, and now my vacation pay, begging a company to set their greed aside so that I can afford to keep my children warm in their beds at night.”
Many attendees at the hearing echoed similar sentiments, questioning why they should have to shoulder the burden of higher electricity costs. Bill Abbott, who traveled to Jefferson City from Eldon, spoke with frustration, asking, “How much profit is enough?” He highlighted the concern that the proposed increase would disproportionately affect the poor and elderly, many of whom are on fixed incomes.
Residents of smaller communities also raised their voices in opposition. Johnnie Briggs-Taylor, from the town of Olean, expressed concern about how the increase would affect the local population, saying, “Olean is a very small town. People there are low income and this rate increase will hurt them even more.”
In response, Warren Wood, Vice President of Legislative and Regulatory Affairs for Ameren Missouri, explained that the company was proposing the rate hike to cover the increasing costs of maintaining and upgrading its infrastructure. This includes replacing aging poles, wires, and transformers, as well as building new solar power plants to meet future energy demands.
“We’re hardening the grid, replacing old power lines, strengthening poles, upgrading substations, and now serving customers with some new energy resources,” Wood said, acknowledging the rising costs of infrastructure materials. “We’re seeing much higher prices of the infrastructure we need to use to upgrade the system and sometimes the timeline it actually takes to get it.”
The public hearing is part of the ongoing rate case process, which allows utility companies to present proposals for adjusting the prices they charge customers. In Missouri, utilities like Ameren are regulated monopolies, meaning they are the sole provider of services in certain areas, and their rates are subject to state oversight by the PSC.
Ameren filed its rate case in June 2024, starting an 11-month regulatory review process. The company’s request is being carefully audited by the PSC staff, as well as the Office of Public Counsel, a state agency tasked with representing the interests of Missouri residents in rate cases. The Office of Public Counsel advocates for fair and reasonable utility rates while ensuring that customers continue to receive safe and reliable service.
While Ameren’s original proposal seeks a 15.77% rate increase, the PSC staff has recommended a slightly smaller increase of 14.18%. This would raise the company’s revenue by $406.9 million annually, approximately $40 million less than Ameren’s initial request. The PSC commissioners, five of whom are appointed by the governor and confirmed by the Missouri Senate, are expected to make a final decision on the rate increase in May.
In the meantime, a virtual public hearing will be held on Friday at 12 p.m. for those unable to attend in person. Details on how to join the meeting via WebEx are available on the PSC website.
Chair Kayla Hahn of the Public Service Commission expressed her gratitude to those who attended the hearing, noting that their feedback would be crucial in guiding the commission’s decision. “Undoubtedly your comments and feedback will help inform our decision and help us make a better decision because of it,” Hahn said.
Ameren Missouri has also reminded customers that there are payment assistance options available for those struggling with their utility costs. Customers in need of support can call 800-552-7583 or visit amerenmissouri.com/energyassistance for more information on available programs.
Ameren currently provides electricity to approximately 1.2 million customers across Missouri. Although the company also supplies gas to a few communities in mid-Missouri, this rate case only pertains to electric prices.
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