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 

Taum Sauk staffing questioned decades before collapse

Monday, June 25th, 2007

By David A. Lieb

THE ASSOCIATED PRESS

06/24/2007
JEFFERSON CITY — As Union Electric Co. prepared to open a mountaintop hydroelectric plant in 1963, some workers raised concerns about a staffing schedule that left no one onsite overnight to prevent potential problems from escalating into a disaster.

But state utility regulators sided with the electric company, ruling the plant was not inherently dangerous and required no overnight staff.   For the the rest of the story, click here.

An open letter regarding Ameren’s performance

Monday, June 4th, 2007

Before we are all brainwashed by high paid AmerenUE executivies into thinking they did a “Great Job” in restoring power to thousands of customers, let’s review the facts.

…Most of the outages occurred on Thursday night or in the early morning hours

of Friday, December 1st.

…There was little or no power restoration over the weekend based on Ameren’s

own numbers on the internet.

…AmerenUE claimed crews from other locations couldn’t get here quickly

because of impassable roads.

…150,000 customers still without service on Monday, December 4th
For all of the open letter, click here.

PSC To Hold Local Public Hearings In St. Louis In AmerenUE Rate Case

Monday, December 11th, 2006

Saint Louis, MO, December 11, 2006 – The Missouri Public Service Commission will hold four local public hearings in the St. Louis area in early January to receive customer comment on an electric rate case filed by Union Electric Company
d/b/a AmerenUE. Two local public hearings will be held on January 2, 2007, and two more will be held on January 8, 2007.

January 2, 2007
St. Louis County Library
Thornhill Branch
12863 Willowyck Drive
11:30 am *

January 2, 2007
Wohl Community Center
Auditorium
1515 North Kingshighway
5:30 pm *

January 8, 2007
Univ. of Missouri-St. Louis
Century Rm.-Millennium Student Center
One University Boulevard
11:30 am *

January 8, 2007
St. Louis Community College of Forest Park
Highlander Lounge of the Student Center
5600 Oakland Avenue
5:30 pm *

* Informal question and answer session begins. The local public hearing starts approximately 30 minutes later and will conclude when the last witness has testified. For more of the PSC release, click here.

Consumers Council of Missouri: “Is the PSC a division of Ameren?”

Thursday, September 7th, 2006

Saint Louis, MO, September 7, 2006 -The Consumers Council of Missouri today took a strong stand against the electric fuel surcharge proposal being considered by the Missouri Public Service Commission, saying the concept has been unfairly and heavily influenced by the electric industry, particularly AmerenUE… For the full news release, click here.