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Ameren Illinois Rate Relief Programs - FAQs

     

1.

Q.

What does this agreement do?

 

A.

This agreement provides the immediate rate relief that our customers have been asking for since the beginning of the year. It provides comprehensive, across-the-board relief to our residential electric customers.
  

2.

Q.

How much of the statewide $1-billion rate relief package is earmarked for Ameren Illinois utility customers?

 

A.

Ameren Illinois utility electric customers will receive $488 million in rate relief from 2007 to 2010.
  

3.

Q.

Will every Ameren Illinois utility electricity customer receive rate relief?

 

A.

Yes, every residential electricity customer will see a reduction in their electric bill as a result of this agreement. The vast majority of residential customers–80 percent–will realize a cut of 40 percent or more from the expected increase in their 2007 electric bill.
  

4.

Q.

How much will I receive in credits or on my check?

 

A.

Residential customers using small amounts of electricity will get at least a $100 credit or rebate. A typical residential electric customer who doesn’t use electric heat will get a credit or rebate of about $130 in 2007. Typical residential customers who heat their homes with electricity should get a credit or rebate of about $400 this year. And residential customers who use large amounts of electricity could get more than $1,000 returned to them this year.
  

5.

Q.

When will I receive my credit or rebate?

 

A.

The Ameren Illinois utilities have filed with the Illinois Commerce Commission (ICC) their plan to issue credits or rebates with respect to customer bills. The plan does not require ICC approval. The Ameren Illinois utilities will begin applying credits and distributing rebates in mid-September.
  

6.

Q.

Will I receive a rebate check or a credit?

 

A.

Customers who have past due amounts less than 60 days will receive a check in the mail. Customers who have past due amounts older than 60 days will have a credit applied to their account.
  

7.

Q.

What if I have a current payment agreement?

 

A.

The relief payment will be applied in the form of a credit that will go toward your payment agreement.
  

8.

Q.

Will I receive future credits, and if so, will they be as much as the first one?

 

A.

Future credits will be applied to your account through 2009 to lessen the impact of the higher electric prices in effect, however they will not be as much as the initial credit since the initial credit covers a nine-month, retroactive billing period.
  

9.

Q.

How was this agreement reached?

 

A.

For several months, leaders of the Illinois House, Senate and the Illinois attorney general’s office have had extensive discussions with representatives from the Ameren Illinois utilities, Ameren Corp., Commonwealth Edison Company, Exelon Corp. and other generators to reach a constructive way to limit the electric rate increase that took effect in January 2007. The parties agreed this week on a rate relief package for Illinoisans. That agreement needs to be passed by the Illinois House and Senate and signed by the governor before it can be implemented.
  

10.

Q.

What are the main components of this rate relief package?

 

A.

The seven major elements are as follows:

   

For all residential electric customers of the Ameren Illinois utilities, the average increase for 2007, over 2006, will be approximately 19 percent. Annual residential electric bill increases in 2008 and 2009 will be limited with additional credits. Those bills may be impacted by a future delivery service rate case and the future cost of procuring power.

   

Late payment charges for residential customers with current outstanding balances will be waived until Oct. 1, 2007.

   

Millions of dollars in assistance will be directed toward the special needs of eligible low-income customers, senior citizens, small businesses, not-for-profit organizations and customers with unique hardships.

   

The utilities will make a strong commitment to energy conservation programs designed to reduce energy consumption through increased energy efficiency. In addition, a certain percentage of the utilities’ electricity will come from renewable sources.

   

Some 13,000 small business and not-for-profit customers whose 2007 rate increases exceeded 40 percent will receive credits to scale back their increases to 40 percent. Monthly credits will be based on each customer’s 2006 usage. Additional credits will limit increases in 2008 and 2009.

   

The Illinois attorney general has agreed to withdraw all related litigation and proceedings initiated by the attorney general against the Ameren companies.

   

The General Assembly leadership agrees not to pass legislation that would freeze or reduce electric rates, or impose a tax, special assessment or fee on electricity generators through Aug. 1, 2011.
  

11.

Q.

If I have a past due bill, can I just wait to have the credit applied before I pay the bill?

 

A.

Customers should continue to pay their bills by the due date. If you are financially unable to pay the full amount by the due date, you should immediately call the customer service number for your Ameren Illinois utility. Those numbers are: AmerenCILCO: 888.672.5252. AmerenCIPS: 888.789.2477. AmerenIP: 800.755.5000. Customer service representatives can establish a repayment plan best suited to your budget, taking into consideration your credit amount.
  

12.

Q.

What if the credit I receive does not cover my entire past-due amount?

 

A.

You will remain responsible for any past-due amount on your bill. If you are financially unable to pay the entire amount, please call the customer service number for your Ameren Illinois utility as listed above.
  

13.

Q.

Will my service be disconnected if I have an unpaid balance on my bill?

 

A.

The Ameren Illinois utilities will not disconnect any all-electric residential customer for non-payment through Sept. 1, 2007. To prevent a disconnection after that date, you must pay any past-due amount or enter into a repayment plan with your Ameren Illinois utility. If you now have a repayment plan, it is important that you continue to make the agreed-upon scheduled payments until your bill is current.
  

14.

Q.

Where is the money coming from to provide this rate relief?

 

A.

The $1-billion statewide rate relief package is funded by contributions of $150 million from Ameren-affiliated companies, $800 million from Exelon-affiliated companies and the remainder from various electric generating companies.
  

15.

Q.

You reported that additional assistance will be available for low-income customers, senior citizens, small businesses, not-for-profit organizations and customers with unique hardships. How much will be available? What are these programs?

 

A.

The Ameren Illinois utilities have earmarked $40 million for special assistance over the next four years. Those programs are as follows:

   

Cooling Assistance Program: The Ameren Illinois utilities will provide donations to the Illinois Low Income Home Energy Assistance Program (LIHEAP), which is administered by the Illinois Department of Healthcare & Family Services (DHFS) through a network of local agencies. The Ameren Illinois utilities’ contributions will help fund individual cooling assistance grants of $150 to qualifying seniors, the disabled and vulnerable households with children. $6 million will be allocated over four years.

   

Bill Payment Assistance Program: The Ameren Illinois utilities will provide $150 grants to low-income electric customers with household incomes of 150 percent to 200 percent of the federal poverty level ($30,975 to $41,300 for a family of four). The grants will be provided through the local community action agencies that administer the LIHEAP. $7 million will be allocated over four years.

   

Hardship Assistance for Residential Customers: The Ameren Illinois utilities will provide funds for bill payment assistance for certain residential customers with hardship situations. Local community action agencies will distribute the funds based on the hardship of customers with household incomes of up to 400 percent of the federal poverty level ($82,600 for a family of four). Based on agency discretion, a maximum of $600 per household may be provided. $8 million will be allocated over four years.

   

Hardship Assistance for Non-Residential Customers: Assistance will be made available to non-profit organizations, community centers and small businesses who buy electric service from the Ameren Illinois utilities. The Energy Assistance Foundation will administer the program. Assistance of up to $5,000 per customer may be provided. $6 million will be allocated over four years.

   

Percent-of-Income Payment Program (PIPP) Pilot: The Ameren Illinois utilities will partner with the Illinois DHFS in the development of a PIPP pilot. The pilot will target about 14,000 Ameren Illinois utility low-income electric space heat customers to determine if paying a percentage of income will make energy more affordable and develop regular bill paying habits. $6 million will be allocated over four years.

   

Space Heat Weatherization Aid: Assistance will be available to LIHEAP-approved customers, particularly those with high usage and all-electric households. The DHFS will be partnering with the Ameren Illinois utilities to implement this program. $3 million will be allocated over four years.

   

Compact Fluorescent Bulb Distribution: Nearly one million compact fluorescent light bulbs will be made available at reduced or no charge by the Ameren Illinois utilities to residential customers. The bulbs use as much as 75 percent less energy than standard incandescent bulbs, produce 75 percent less heat and last up to 10 times longer. Of special interest, customers can save $30 or more in electricity costs over the life of each CFL bulb. $2 million will be allocated over four years.
  

16.

Q.

What will be the future of electric rates in Illinois?

 

A.

No one can predict with any certainty what will happen to rates. However, the Ameren Illinois utilities have proposed to the Illinois Commerce Commission a rate redesign aimed at leveling out seasonal bill fluctuations for residential customers who use large amounts of electricity during the winter. Besides rates, individual bills are determined by usage and weather conditions.
  
The utilities also have endorsed legislation that creates the Illinois Power Agency (IPA). This new agency will be responsible for designing a system to procure power for the Ameren Illinois utilities and Commonwealth Edison, beginning in June 2009. This process will be subject to the approval of the ICC. The utilities will be allowed to fully recover the cost of that power from their electric customers.
  
In the interim, the existing auction format for power procurement will be replaced in June 2008 with an independently monitored request-for-proposal process overseen by the ICC. Furthermore, the Ameren Illinois utilities have agreed to enter into contracts to lock in the cost for a portion of their power requirements from 2008 to 2012 to minimize potential fluctuations in future price increases.
  

17.

Q.

Will this multi-million dollar expenditure limit the investment aimed at maintaining and improving the reliability of the power delivery system?

 

A.

No. The Ameren Illinois utilities are committed to investing in upgrading our electric system to ensure there is safe, reliable power for our customers.
  

     

   
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