In 1997, Illinois liberalized its energy market and allowed private companies to compete with utility companies like Ameren. Today, Ameren serves 2.4 million electric and 900,000 natural gas users in Illinois and Missouri.
Ameren Illinois Rates
Your electricity bill consists of two parts – delivery service and charges for supply. Your monthly bill will contain about one-half to two thirds of the cost of energy supply. These costs cover construction, maintenance and improvements to your electricity distribution system plus the employees who maintain it and keep the power flowing to you.
In Illinois, customers who participate in municipal aggregation, or who choose to let ameren illinois be the power supplier paying an additional electricity rate than normal. These rates are based upon Ameren’s efforts in purchasing large blocks of power supplies from wholesale electricity markets.
Municipal aggregation is when all the businesses and residents in a community are joined into a power supplier for the city. This usually happens on a 1-year, 2-year, or 3-year contract.
Residential and small business customers who opt out the program can re-join Ameren. Business or residential customers can also switch to another electric supplier if they wish.
Commercial customers can sign up for a 1 or 2-year contract with a third party electric company. The company will bid for the right to supply energy to the business and lock in lower prices.
The Midcontinent Indepedent System Operator, which encompasses 15 states as well as regions of Canada, determines the cost of electricity for the city’s electric customers. MISO runs an annual capacity auction which results in higher prices, however they also consider global market pressures and recent public policy that favors renewable energy.
However, Ameren does not profit from these supply charges. Instead, Ameren Illinois takes these costs and passes them to their customers in the form delivery charges.
This is the amount you pay for your electricity and natural gases supply charges. These charges are paid by the various electric and gas suppliers who send their natural gas or electricity through Ameren Illinois to your home and business. The supply charge on your electricity bill is comprised of a number of elements that are not easily changed such as transformers, wires meters, wires, and other components of the power delivery system.
Ameren Illinois filed a request to the Illinois Commerce Commission to increase the rates of its DS-1, Residential and DS-2 Small General Delivery Services. The filing will be effective starting January 2023. This change will cost Ameren Illinois customers an average of 8.6 percent in additional costs. It will also require Ameren to invest $625 million in modernizing their electrical system over the next 10 years. This will result in increased reliability in energy, shorter interruptions, and enhance customer service.