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In an already tight economy, consumers are getting hit with higher prices at the gas pump, the grocery store and even get hit in their own homes with higher utility rates—if Illinois utility companies ComEd and Ameren get their way. The companies are looking to nail consumers with over $600 million in higher rates and even more in new surcharges. 

After seeing record rate increases in 2007, Illinois consumers are bracing for increases to their utility bills, as both ComEd and Ameren are back at the trough again. The new rate increases and surcharges would all but wipe out the historic $1 billion rate relief package signed into law last year to combat the rate hikes and bring about essential reforms to the utility industry in Illinois. 

AARP was a crucial voice in advocating for the passage of last year’s rate relief law and is now fighting the latest attempt from Illinois utility companies to balance their corporate checkbooks on the backs of consumers. AARP has set up a Rate Hike Hotline (1-800-719-3020) to allow consumers to voice their opposition to the hikes and surcharges.

ComEd has requested over $360 million in rate increases. Their request includes an increase in the Customer Charge and the Meter Charge and Distribution Facilities Charge—an estimated $6/month increase on a $75 monthly bill. In addition, ComEd is seeking to tack two new surcharges (called riders) on to your bill, resulting in a “rubber stamp” approval process and even higher bills for consumers, with little to no public input:
 
--“System Modernization Project” Adjustment Rider – forces customers to subsidize new technological investments unrelated to basic electric service (such as a “Smart Grid”), with rate increases that would occur without the benefit of a full rate case review.
 
--“Storm Expense Adjustment” Rider – allows ComEd to increase rates in between rate cases for expenses related to storm damages, on top of the amount that is already included in your electric rate for this purpose, and without any offset for reductions in other expenses.

Ameren Illinois Utilities (AmerenCILCO, AmerenCIPS, and AmerenIP) has requested a $247 million annual increase for electric and natural gas customers. In addition to the rate increases, Ameren is also seeking approval for three surcharges (riders) that, if approved, will be added to customer’s bills:

--“Qualifying Infrastructure Plant (electric)” – Shifts responsibility and risk of capital investments between rate cases away from shareholders and onto ratepayers.
-- “Uncollectibles” – Shifts the risk for fluctuations in bad debt expenses between rate cases away from shareholders onto ratepayers.
--“Decoupling” (natural gas only) – “Save more – Pay more” - Punishes consumers for conserving gas, by charging higher rates when people use less gas.

AARP has led the charge in fighting this most recent round of proposed hikes, and has been joined by the Citizen’s Utility Board and the Attorney General in the effort–but we need your help as consumers too! Contact AARP’s Energy Rate Hotline at 1-800-719-3020 to tell the ICC “No Way!” to the additional rate hikes.

The ICC has held a series of public hearings on the proposed Ameren and ComEd rate hikes.  Consumers and AARP volunteers have been out in full force at each hearing, demanding that the ICC reject the Ameren and ComEd proposals. Make your voice heard—call AARP’s Rate Hike Hotline (1-800-719-3020) and say “No Way” to more Ameren and ComEd rate hikes.