TERRE HAUTE, Ind. (WTWO/WAWV) — As electric bills for July start to arrive, many Ameren Illinois customers say the rise in electricity prices is burning through their checkbooks.
As you scroll through the Facebook page of Ameren Illinois, its comment section is riddled with customers showing their dissatisfaction with recent rate increases, including one commenter who claimed their bill recently increased by over $300.
“My bill went from $225 to $537 and that is NOT ok! Shame on you! I don’t know what’s going on to create this ridiculous issue but someone somewhere needs to intervene and straighten this out asap!!!!”
Another customer in WTWO/WAWV’s area also claimed that their bill increased by over 50% compared to last year.
WCIA, our sister station in Champaign, Illinois, has reported that the rate increases have also affected small businesses like Mad Goat Coffee, which recently opened a new location in Champaign just a year and a half ago.
“Every single dollar helps keep this place open, so yeah, it’s a big deal when those rates go up,” said Ben Karwoski, owner of Mad Goat Coffee. “They hit us just like they hit a family budget, and it makes things tough.”
WCIA also reported that the rate increase was the result of the Mid-Continent Independent System Operator’s annual capacity auction in April, which ensures there is sufficient electricity supply to provide power on peak days throughout the year.
The auction resulted in a twenty-fold increase in summer capacity prices over previous prices, but Ameren said they do not control these prices.
“These results highlight the ongoing energy challenge in downstate Illinois and the need for a more robust resource planning process on the state level,” Ameren said in a statement. “We understand that supply cost increases may cause financial strain for some customers. We encourage customers to explore ways to reduce their bills.”
As Illinois residents face these rate increases, the Citizens Utility Board called for Ameren to work with its customers.
“This will be a difficult summer for far too many customers,” CUB Executive Director Sarah Moskowitz said. “In this expensive summer, we urge Ameren to do everything possible to work with customers so they can stay connected and keep their homes safe and cool.”
The increase in electricity prices took effect on June 1 and will last until September 30, when the electric supply rate is expected to return to previous rates due to temperatures falling.
“High summer electric prices are the leading factor of high bills this summer, along with the long stretch of extremely hot temperatures,” said a representative with Ameren. “Simply put, supply and demand issues have led to these prices increasing. Ameren Illinois is a delivery-only company. We simply deliver electricity to our customers; we don’t produce it. The electricity we deliver either comes from third-party suppliers or through electricity contracts procured by the IPA and MISO. We pass along those supply costs, dollar-for-dollar, to customers without markup.
The representative also suggested families struggling to pay their bills should look into payment programs here.
“We know many families are facing challenging economic times, and no one wants to see rising energy bills. Ameren Illinois is here to assist our customers in managing these rising energy costs. We offer a variety of bill assistance programs, grants, and flexibly payment arrangements,” said the representative.
