Archive for the ‘Ameren’ Category

Business paying its own costs of doing business

Tuesday, June 24th, 2008

Ameren UE needs to be stopped a lot sooner than later. Why should it be the burden of all customers to pay for tree removal encroaching on power lines. What about those who have no trees on their property? Ameren UE should have buried their lines years ago. Now they want a nuclear plant, compliments of consumers? This trend of utility companies especially, expecting consumers to pay for the costs of operating their businesses is ridiculous. Goods and services cost more today than ever. These windfall profits are not being circulated into jobs and wages but being siphoned off at the top of these organizations. Daimler-Chrysler sold Fenton a bill of goods when it skated out on 70+% of it taxes with promises of not leaving and taking away jobs. Now half of its plant is shutting down, along with half of the jobs. Citizens do not get 70% tax exemption! Everyone (including businesses) needs to carry their share of the costs of having a governing system - not just Jane and John Doe.

April Fool’s Day (actually 10 pm) Hearing Attempts to Hoodwink Consumers

Friday, April 4th, 2008

Consumers are rejected in late night meeting with legislators

by Michael Sorkin, St. Louis Post-Dispatch

Consumers complain that they don’t get much respect from Missouri legislators, even in an election year.

A group of consumer representatives asked a key legislative committee to block surcharges that could be tacked onto consumer electric bills starting this year. Critics say it could add millions of dollars to monthly electric bills statewide.

The legislators agreed to hear the consumers — at 10 p.m. Tuesday, on April Fools’ Day. Please click here to read the full story.

The Trojan Horse Gallops around Jeff City

Thursday, March 20th, 2008

Power switch

Missouri utilities want to change state law to encourage energy efficiency programs. They’re willing to help their customers pay for installing energy-saving equipment, insulation or even new energy-saving air-conditioning systems.

Saving power is a good thing — for the nation, for consumers and especially for electric companies. It means they don’t have to build expensive new power plants to meet increasing demand. The economic benefits for utilities are so great, in fact, that legislators should be asking why Senate Bill 1277 and House Bill 2298 are needed to encourage them.

The answer is that they are not. Not the way they’re currently written, anyway, and probably not at all.  Please click here to read the full editorial that ran in the St. Louis Post-Dispatch on Sunday, March 16, 2008.

Consumers Ignored Again…..

Friday, February 29th, 2008

Regulators OK rules for environmental surcharge

By Jeffrey Tomich of the St. Louis Post Dispatch

02/28/2008 4:03 pm

The Missouri Public Service Commission voted 4-1 Thursday approving rules that may allow electric utilities to impose a customer surcharge to recover environmental expenses, PSC spokesman Kevin Kelly said.

Commissioner Robert Clayton III voted against the rules, which will take effect later this year.

The rules are based on 2005 legislation that was pushed by the utilities to help them recoup certain expenses without having to go through a rate case, a thorough, 11-month review of all a utility’s costs and expenses.

Utilities would need individual approval from the PSC to add a surcharge, which would be a separate line item on bills and could be adjusted from year to year. The amount of the surcharge would be limited to 2.5 percent of a utility’s revenue. St. Louis-based AmerenUE’s revenue exceeded $2 billion in 2007.

AmerenUE seeking new rate hike!

Friday, January 25th, 2008

Despite a $43 million increase granted by the Missouri Public Service Commission in May, AmerenUE is seeking another rate hike.  AmerenUE said they would seek more frequent rate increases in the future.  See the attached Post Dispatch story:

http://www.stltoday.com/blogzone/business-news/business-ticker/2008/01/amerenue-to-ask-for-rate-increase/

Taum Sauk infomercial- news blurb or news blur?

Thursday, September 13th, 2007

ST. LOUIS POST-DISPATCH EDITORIAL

In prime time, KSDK-TV was scheduled to air “A New Beginning: Johnson’s Shut-ins State Park.” Its subject, as the title suggests, was the popular Missouri state park that essentially was destroyed in December 2005 by a wall of water released by the catastrophic failure of AmerenUE’s Taum Sauk hydroelectric reservoir.

Because “A New Beginning” uses the presentation styles and techniques of television news, it looks like a news special. It is not. Because “A New Beginning” aired on a station that identifies itself as “Newschannel 5,” viewers might think that it was produced by the station’s news department. It was not. Because promos for “A New Beginning” promise to deliver “the full story” of the disaster, viewers might conclude that it tells them the full story of the disaster. It does not.  Please click here to read the St. Louis Post-Dispatch’s editorial on this  infomercial paid for by Ameren’s customers.

Ameren: Redefining the definition of News

Wednesday, September 12th, 2007

By Todd C. Frankel

ST. LOUIS POST-DISPATCH

 

Airing in primetime on KSDK is a half-hour show on a controversial topic: the Taum Sauk reservoir disaster. A perfect subject for a news show.

The program looks and feels like a TV news show. Karen Foss, the former longtime KSDK news anchor, hosts it. Experts are interviewed. So are executives and state officials. They discuss in a seemingly frank manner the environmental catastrophe and rebuilding efforts that followed the December 2005 breach at AmerenUE’s massive reservoir, when 1.3 billion gallons of water crashed through Johnson’s Shut-Ins State Park.”Get the full story on what happened,” proclaim the print and online ads touting the show.But the “full story” is actually a polished infomercial. Click here to read the full story.

Ameren rebate checks begin to flow

Monday, September 10th, 2007

By Jeffrey Tomich
ST. LOUIS POST-DISPATCH
09/10/2007

Ameren Corp. said it will begin refunding $140 million to its Illinois (NOT Missouri) electric customers beginning this week, with nearly 1 million customers getting at least $85.

Customers will get either a bill credit or a rebate check in the mail over the next month, St. Louis-based Ameren said today.

The checks will be mailed to 935,000 residential customers who are current on their bills starting Wednesday, Ameren officials announced during a series of press conferences around the state. For the full Post-Dispatch story, click here.

For Ameren’s news release, click here.

MoPSC Proposes Weak Customer Credits for Storm Outages . . . Relief Available Only After 5 days

Tuesday, August 14th, 2007

What kind of refund should customers receive when they suffer through power outages that last for days at a time?  Amazingly, there remains a controversy within the Missouri Public Service Commission (MoPSC) about whether to order any credits to such customers.  As for the AmerenUE and the other regulated electric utilities, they are pulling out all the stops to lobby the MoPSC against rate relief to customers that are inconvenienced by long storm outages. 

Last week, a strongly divided commission voted 3-2 to simply consider the adoption of rules that include credit provisions, and then sent the proposed rules to the Department of Economic Development for its political consideration.  Ultimately, the rules will be published and then public comment can take place formally.  The issue is far from being ultimately decided because one or more commissioner may yet change their minds prior to adoption of the final rule.

 

The Consumers Council of Missouri is pleased that at least a majority of the MoPSC is moving forward with some recognition of the inconvenience that customers suffer suring the kind of long outages that the St. Louis area experienced twice last year.  However, the current proposal is weak compared with the credits granted to consumers in other states.  Pacific Gas & Electric (PGE) voluntarily grants a $25 credit for each day after 48 hours of an outage (up to a maximum of $100)—no matter the reason for the outage.  The 48-hour mark recognizes the fact that 2 days is a reasonable threshold for being out of power, even after a major storm. 

 

By comparison, the MoPSC is proposing that there be only a one-time credit of $25 and only after 120 hours (5 days) in case of a major event (i.e., storm outage).  There are proposing a one-time credit of $25 if your power is not restored within 16 hours, if the interruption occurred “under normal conditions”.

 

Here is the wording of the PSC’s relevant portions of the rule dealing with customer credits:

Unless an electrical corporation requests a waiver pursuant to (§_____) of these rules, an electrical corporation that fails to restore service to a customer within 120 hours after an interruption that occurred during the course of a major event shall provide to any affected customer a bill credit on the customer’s next bill.  The amount of the credit provided to a residential customer shall be the greater of $25.00 or the customer’s monthly customer charge. 

Unless an electrical corporation request a waiver pursuant to _____ of these rules, an electrical corporation that fails to restore service to a customer within 16 hours after an interruption that occurred during normal conditions shall provide to any affected customer that notifies the electrical corporation of the interruption a bill credit on the customer’s next bill.  The amount of the credit provided to a residential customer shall be the greater of $25.00 or the customer’s monthly customer charge.  The amount of the credit provided to any other distribution customer shall be the customer’s minimum bill prorated on a daily basis.

Many customers were forced to throw out everything in their refrigerators twice last year.  And those that couldn’t survive without heat or air conditioning had to search out extraordinarily costly alternatives, such as finding hotel rooms many miles away or purchase gasoline-powered generators.  The average AmerenUE customer who was out of power for periods lasting longer than 48 hours during the 2006 outages suffered expenses that far exceeded $25.

 

The Consumers Council of Missouri is shocked that AmerenUE has not decided to implement any voluntary program that would be similar to what PGE and other electric utilities have offered to their customers.  It would be a nice gesture to let consumers know that AmerenUE was putting its money where its mouth is as far as ensuring reliable service, and could help to improve that company’s image.  It might even serve as an incentive to finding the best ways to improve its system and avoid the disastrous outages of 2006.

 

Of course, AmerenUE is the company that chose to give its top executives bonuses as a result of the “good job” that they did during the storm outages last year.

 

Here is a link to a newspaper article about the action that the MoPSC has recently taken on customer credits—

http://www.semissourian.com/story/1236729.html 

Informal comments can be sent to MoPSC Chairman Jeff Davis at the Public Service Commission, P.O. Box 360, Jefferson City MO 65102.  Reference “Customers credits for storm outages”.

Comments may also be submitted electronically at—

https://www.efis.psc.mo.gov/mpsc/Comments.html

AmerenUE upgrades ???

Wednesday, July 18th, 2007

If you were among the hundreds of thousands without power as a result of severe storms last year, it is good news to hear that AmerenUE is planning to upgrade its system and improve its tree trimming program.  Will it be enough, or once again will more than 600,000 customers face extended outages if the region is hit with severe storms in the future?  Only time will tell.

The Consumers Council is a bit skeptical, and it is continuing to ask the MO Public Service Commision for rules requiring AmerenUE to give rebates (or credits) of $25 a day for outages lasting longer than 48 hours.  We encourage you to support this plan with a message to the PSC.  The Chairman is Jeff Davis, and the e-mail address is www.psc.mo.gov or Box 360, Jefferson City, MO 65102.  See the following St. Louis Post Dispatch article for detailed plans of the upgrades.

 The Balm before the Storm

Author: Jeffrey Tomich

A year after thunderstorms packing hurricane force winds ripped through the area leaving 600,000 AmerenUE customers in the dark, the utility says it will invest hundreds of millions of dollars to fortify the power grid and make it less prone to widespread outages. Much of the spending - $100 million a year for three years - will be used to bury miles of overhead power lines, especially those most susceptible to falling trees and limbs. An additional $28 million a year over the same period will go for more inspections and repairs to fix problems with poles and hardware before they fail. St. Louis-based Ameren, which has 1.2 million Missouri customers, will announce the plans this morning as part of a three-year, $1 billion initiative called Project Power On. The project includes more funding for tree trimming and $500 million to install pollution controls at the 40-year-old Sioux power plant in St. Charles County. Ameren doesn’t have any plans to roll out a similar reliability project at its three utilities in Illinois, which are grappling with the response by customers and legislators to a steep jump in electricity prices after rate caps expired at the end of last year. Utility infrastructure projects rarely generate a public relations blitz. But few utilities have faced the fierce public backlash that Ameren did after three widespread power outages over a six-month period last year. And executives said they want customers to know they’re listening. “We have always made investments, we just didn’t talk about it,” Thomas R. Voss, AmerenUE’s chief executive, said in an interview at the company’s Chouteau Avenue headquarters. “We realized that was a mistake.” But AmerenUE officials insist that the project to “harden” its electric delivery system, and make it less prone to storms, isn’t an admission of any past failures. “This isn’t an issue of trying to improve something that was broken,” said Voss, who was named AmerenUE’s CEO last year. “This is trying to make it better than it was, especially for severe weather. This is all about going a step further.” Project Power On was conceived in January. Ameren spent six months and met with more than 150 local officials and neighborhood groups to identify and prioritize individual projects, and determine how much to spend on each, said Richard J. Mark, AmerenUE’s senior vice president of energy delivery. “It surprised all of us the amount of analysis it took to look at each of the 62 counties we serve and where the projects would be and determine manpower,” he said. At a cost of $1 million a mile, the $300 million set aside to bury some overhead power lines will cover only a tiny fraction of the utility’s 27,000 miles of existing overhead electric wire. Ameren also is encouraging cities to require underground utilities in new subdivisions. “We’re not on a path to put everything on our system underground,” Voss said. “It’s just to shore it up in areas where we think the system is weak. We think this will be an answer for what have been troublesome areas.” The first project, replacing 2,000 feet of overhead line with 2,800 feet of underground wire in the heavily wooded Talisman Way subdivision in north St. Louis County, is almost complete. A second is in the planning stages, Ameren spokesman Tim Fox said. The subdivision, made up of about two dozen homes, has been plagued by power surges and failures for more than two years, said Lorrie Backowski, a neighborhood association trustee who spent nine days without electricity after the storms last summer and also lost power in the December ice storm. “I’ve lived in the subdivision about 13 years, and I’ve probably made three or four food claims against my insurance for food spoilage,” she said. It required persistence to get Ameren’s attention, but Backowski said she is encouraged by efforts to permanently put an end to flickering lights, summer afternoons without air conditioning and spoiled food. Besides burying more lines, Ameren is beefing up inspections of infrastructure by establishing a “foot patrol” of circuit inspectors who will walk neighborhoods in search of problems. They’ll also test thermal imaging devices used on larger power lines to look for hot spots where corrosion or a loose connection could cause a power failure. The company says poles will be tested and replaced more frequently. The annual tree trimming budget has been boosted 40 percent to $45 million, as approved by Missouri regulators. And AmerenUE is voluntarily adopting the 2007 National Electric Safety Code for larger subtransmission lines even though it’s not required to do so. The reliability projects won’t prevent storm-related outages altogether but should help minimize damage, Voss said. And when outages do occur, customers will be able to check online whether their power has been restored with just a phone number, rather than being required to register with the website and establish a user name and password. The utility also established a team dedicated to more accurate restoration times during a major outage. “That’s something that no one’s been able to figure out at any utility anywhere,” Voss said. “But we’re going to make a better effort updating those.” Next week marks the anniversary of two severe thunderstorms that roared through the bistate region last July and left 1 million customers without power, some for more than a week. Hundreds of thousands of customers lost power in December and January after crippling ice storms coated trees and limbs, causing them to snap and topple power lines. The widespread outages prompted regulators in Missouri and Illinois to investigate Ameren’s preparation and response to the storms. The Missouri Public Service Commission has written new rules aimed at beefing up tree trimming requirements and implementing new standards for power line inspections across the state. The commission will conduct a public hearing on the rules next month in Jefferson City. A separate rule that would establish new reliability standards is still being discussed. Missouri’s top utility regulator, PSC Chairman Jeff Davis, said he is encouraged by some steps Ameren has taken over the past year and said two of the new rules could be in place by year’s end. “We need to see some results before we’re really content with how things are going,” Davis said. “It’s going to take a little time, but I think they’ve gotten started on it. We just need to keep pushing and making sure that they’re following through.” Ameren has questioned the need for reliability rules, which would require tens of millions of dollars in equipment to record momentary power blips. “There’s an awful lot of money needed for equipment to measure reliability and not actually fixing reliability, and we think that’s a mistake,” Voss said. The Consumers Council of Missouri is pushing regulators to establish what it considers an important provision in the rules being considered - $25 credits for customers who are without power for more than two days.”We’d certainly be unhappy if the commission doesn’t propose any type of customer credit,” said John Coffman, the group’s interim president. “I think most people are willing to persevere, but after 48 hours I think that goes beyond what customers expect.”

Reprinted with permission of the St. Louis Post-Dispatch