Ameren seeking rate hike despite increasing revenue

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by KMOV.com Staff

KMOV.com

Posted on May 8, 2014 at 5:51 PM

Updated Thursday, May 8 at 6:38 PM

(KMOV.com) – News 4 has learned Ameren Missouri is seeking a rate increase even though the company $97 million in revenue during the first quarter of 2014.

Ameren recently announced the amount of net income it took home in the first quarter of 2014 is $40 million more than its net income in the first quarter of 2013. Ameren said the use of natural gas furnaces and furnace fans was one reason for the large increase in income.

Ameren also plans to ask for permission to add a fuel adjustment charge of 66 cents In July, the utility will also ask for a rate increase to pay for solar panel rebates, fuel costs, and new substations and improvements at existing plants.

Many people told News 4 they do not understand why a rate increase is necessary when the company is making a large amount of money.

All rate increases must be approved by the Missouri Public Service Commission (PSC). An expert told News 4 the PSC rarely gives the utility everything it wants.

 

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