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Ameren customers angered with rate increase proposal

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MARION - A hostile crowd of more than 200 gathered at the Williamson County Pavilion on Wednesday evening to voice displeasure with AmerenCIPS officials for proposing a rate increase of more than 4 percent per month for all electric users and 7 percent for natural gas users.

Craig Nelson, vice president of regulatory affairs and financial services for Ameren, presented a slideshow outlining the utility's added costs. He said in order for the company to continue to provide a high level of customer satisfaction, a rate increase is needed. Nelson managed to avoid bodily harm, but did take quite a tongue lashing from some residents.

Ameren's proposed increase is minuscule by comparison to last year's rate hike, but area residents made it clear they aren't agreeable to a second increase so soon.

Ameren officials are asking for $247 million more annually to help cover rising replacement costs for items such as utility grade wire, poles and plastic pipe. They claim the added revenue would not go toward offsetting the costs of rebates and refunds tied to this year's rate relief settlement.

The Illinois Commerce Commission, which ultimately will decide to accept or reject Ameren's proposal, hosted the public hearing - the first of six statewide and the only hearing in the region.

State Rep. John Bradley, D-Marion, who asked the ICC to make Marion one of its stops, was not impressed with Nelson's presentation. He said another rate increase for the utility is unconscionable given that Ameren only had to pay back $150 million in rebates to its customers as part of the $1 billion agreement forged with the legislature last year.

"They say they're suffering, but they ought to see the suffering put on the people of Southern Illinois," Bradley said. "I am demanding that the ICC reject this rate increase and impose sanctions against them. Stop this before it goes any further."

Forty-five residents signed up to speak, including a few Ameren employees.

Amy Paschedag of Edwardsville, speaking on behalf of the AARP, said she was "alarmed" by the utility's request for a rate increase.

"We cannot afford to pay these skyrocketing bills," she said. "People are being forced to choose between paying their electric bill and buying food and prescription drugs. We hope the ICC does the right thing and rejects Ameren's request."

Rich Whitney of Carbondale stressed that the utility had routinely shown profits even before a 10-year rate freeze was removed last year.

Ed Streamas of Marion described himself as a "lowly retiree" and asked Ameren officials to conduct a demographic study of Southern Illinois and explain how residents could continue to afford such increases based on their household income.

john.homan@thesouthern.com / 351-5805

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