Ameren Rate Hike Battle, Take Two

A group of Missouri businesses have fired another warning shot against a plan to allow AmerenUE to raise rates its by 18 percent.

The plan is before the state's Public Service Commission and FERAF -- Fair Electricity Rate Action Fund -- said Thursday it will "educated Missourians through every available means about the impact" of the hike at a time when Missouri's unemployment rate hangs around 9 percent.

"As FERAF members, we respect the PSC and its process and want to make sure as many Missourians as possible know about Ameren’s requested 18% rate hike,” said Bob Quinn, Executive Director of the Missouri Association for Social Welfare, and a FERAF member.

Members of FERAF include the AARP, the Missouri Rice Research & Merchandising Council and the Consumer Council of Missouri.

Ameren had planned to build a second nuclear reactor in mid-Missouri. But earlier this year, the company suspended those plans after lawmakers failed to repeal a 1976 law barring utilities from charging customers for certain costs of a new power plant before it starts producing electricity.

Nixon: Ameren Wouldn't Budge

Governor Jay Nixon suggested Thursday that Ameren UE's unwillingness to negotiate killed a plan that would have allowed the power company to construct a new nuclear plant.

"Adding . . . 15, 20, 30, 40 percent to businesses and individuals bills in the short run in this economy right now, I don't think is the right thing to do," Nixon said at a media availability in Columbia. "They came in with a position and that position never really shifted," he added later.

The legislative proposal -- that now appears to be dead -- would have allowed the utility to charge customers for some of the costs of the plant before it was fully operational. Nixon said he had hoped for a 2-step process, but said he didn't think Ameren has "ever absorbed that point."

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A spokesman for the Fair Electricity Rate Action Fund (FERAF), a group that fought to kill the bill, said it was unfortunate Ameren took "a my way or the highway approach."

"If and when Ameren is ever willing to enter into honest negotiations which don’t imperil Missouri’s energy consumers, we at FERAF will be happy to discuss their proposal further," said FERAF spokesman Gregg Keller.

Irl Scissors, Executive Director of Missourians for a Balanced Energy Future (MBEF), replied: "There is no question that Missouri lost today."

"We lost a $6 billion investment in our state that would have created the largest construction project in Missouri history. We lost the creation of 3,000 good-paying jobs in a time of record unemployment. We lost millions of dollars that would have gone to local governments for public safety and education. And equally important, we lost the prospect of expanding reliable nuclear power in Missouri to meet our growing future baseload energy needs," said Scissors.

Senate Cmt. Approves Ameren Bill

A Senate committee has passed legislation allowing Ameren UE to charge ratepayers in advance of a new power plant's construction.

The 6-4 vote pushes SB228 to the full Senate.

Missourians for a Balanced Energy future applauded the vote:

"The balanced legislation will create 3,000 of those jobs, invest over $6 billion in Missouri, and result in a clean, non-carbon emitting power plant," said spokesperson Scott Charton. "The opposition’s deceptive and negative campaign tactics could not trump common sense in the Missouri Legislature."

The legislation is paving the way for Callaway 2, a nuclear plant and the largest construction project in Missouri history. Ameren UE has argued that a change in law is needed to proceed with the plant.

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The Fair Electricity Rate Action Fund is vowing a fight:

"Ameren should be ashamed. With Missouri’s jobless rate above 8%, you’d think that Ameren would want what’s best for Missouri’s families and seniors. Instead, Ameren is only looking out for their own bottom line, pushing a bill which will raise utility rates on our families and seniors by 40% every single month and guaranteeing job losses in our state," said Gregg Keller, FERAF spokesman.

FERAF believes the bill is a wish-list for Ameren, rather than a comprehensive plan to meet Missouri's energy needs.

Judge Allows Group to Run Anti-Ameren Ad

A judge ruled Saturday that a group fighting Ameren's plan to raise power rates could air television commercials during Missouri's NCAA tournament game Saturday.
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FERAF or the Fair Electricity Rate Action Fund is fighting Ameren's proposed rate plan. The group announced a judge rejected Ameren's temporary restraining order to block their commercials. Ameren argued the public would be "confused" by the ads, but a U.S. District Court judge rejected that complaint.

"We are gratified that the court agreed with us on this important issue and that we can continue to communicate directly with Missourians regarding Ameren’s proposed rate hike plan,"said FERAF spokesman Gregg Keller. "Ameren’s rate hike plan will cause Missourians’ monthly utility bills to go up by as much as 40% and is guaranteed to cost Missouri jobs during difficult economic times and our advertisements accurately reflect these facts," Keller added.

WATCH THE COMMERCIAL HERE

According to the St. Louis Business Journal, in January, Missouri regulators approved an electric rate increase of $162.6 million. But Ameren has argued that increase will still fall short of paying for rising operating and financing costs.