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Southern Illinois University Carbondale

Power in number displayed to Ameren, government representatives

Hundreds gather to voice an opinion about proposed rate-increase

Barton Lorimor

Issue date: 2/5/08 Section: City
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MARION - As he spoke of his struggles with rising energy costs, Thomas Headd said his wife was sitting next to an oil heater to keep warm.

Headd, a 75-year-old customer from Marion, was one of hundreds in attendance at an Illinois Commerce Commission public forum about a potential rate increase for all Ameren utility customers in Illinois. Headd and nearly 40 others shared words of frustration and disapproval directed at the thought of paying more for electricity and natural gas.

The request, filed on Nov. 2 to the Illinois Commerce Commission, would provide the power company with $247 million to compensate for increasing maintenance costs, said Craig Nelson, an Ameren vice president.

Wednesday night's forum at Williamson County Pavilion came at the request of State Rep. John Bradley, D-Marion, who was one of the state legislators supporting a bill that would require the commission to host such an event in areas with the most interest. Five similar events will be held in other Illinois cities, such as Champaign, Decatur and Quincy.

A court reporter was on the scene to record all testimony for commissioners in Springfield and Chicago to review before their vote on the request, which must be taken by Sept. 30.

Headd said his wife has recently suffered from health problems, and the two were forced to sell their two-story home for a smaller house because of their inability to pay its energy costs. But even after their move, he said his fixed Social Security and pension checks were still not enough to pay his electricity bill.

Nelson said the increase in infrastructure costs, as well as the company's possession of "junk bonds", were the main reasons Ameren filed the increase request. Ameren's request also includes riders, which would place a surcharge on each customer's bill for improvements that may not be related to the services and would cover the cost of unpaid energy bills.

Nelson said electricity customers in southern Illinois would pay an extra $4.17 per month, while natural gas users could face $5.42.

As soon as Nelson's presentation was finished, Bradley, a former attorney, made a speech that sent audience members to their feet.

"What I've just heard is the weakest case I've ever heard," he said. "They have sufficient resources, currently, to provide for infrastructure. This is about profits."

The only speaker to voice support for Ameren's request by 8:45 p.m. was Larry Ivory, president of the Illinois State Black Chamber of Commerce. Ivory said he would challenge utility companies, such as Ameren, to educate their customers with ways of how to conserve their energy and save money.

But Ivory's message did not hit home with speakers skeptical of the request, such as Don Phillips of Marion.

Phillips voiced aggravation with Ameren for increasing rates in southern Illinois, where most residents have a fixed income. Phillips said his 83-year-old father will not adjust his thermostat in fear it will cost him more money.

"Southern Illinois has a lower cost of living and lower wages," Phillips said. "There are a lot of people in this community with fixed incomes."

Mike Eberhart, an employee with Ameren in Marion for 27 years, said the company has been replacing underground cables, trimming trees and replacing worn-out equipment in Illinois' southern 14 counties. Infrastructure costs for the region are estimated to be $3.5 million in 2008, and $4.3 million for the year after, he said.

Eberhart said these improvements are needed in order to continue the company's commitment to reliability.

"I think we have to be able to step back and make, what I consider, fundamental business decisions that is not only good short-term," Ivory said.

Erica Abbett, a spokeswoman for Ameren, said her company was in Marion for the same reason as the commission - to listen and help their customers.

Daily Egyptian writer Barton Lorimor can be reached at 536-3311 ext. 274 or barton.lorimor@siude.com.


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