ILLINOIS (WCIA) — Over the next four months, electric bills for the average Ameren Illinois customer will increase by approximately $45 after the results of a recent resource auction by a system operations company.
The Mid-Continent Independent System Operator (MISO), the regional grid operator for the Ameren service territory, held its annual capacity auction in April to ensure there is sufficient electricity supply to provide power on peak days throughout the year. MISO and Ameren officials said the results of that auction indicate there will be a sufficient supply, but the prices reflect a tightening supply-demand balance, thus driving prices upward.
The auction resulted in a twenty-fold increase in summer capacity prices over current prices. Ameren, however, does 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.”
Ameren officials explained that they are a delivery-only utility, with no electricity generation of their own, and that state rules require utilities to procure electric capacity from generators at the prices secured by MISO and the Illinois Power Agency. The costs then get passed to customers, dollar-for-dollar, without markup.
They also explained that a customer’s electric bill is split between two components: the delivery charge and the supply charge. The delivery charge covers the costs of Ameren’s wires and poles; technology and operating systems; and maintenance and modernization. The supply charge is the cost of electricity itself, and it accounts for more than half the bill.
The increase in electricity price will take effect on June 1 and last until Oct. 1, when the electric supply rate is expected to return to current rates due to falling temperatures.
