Ameren rate increase challenged by green groups

The Missouri Coalition for the Environment, Missourians for Safe Energy and the Great Rivers Environmental Law Center want to legally intervene in the case before the state Public Service Commission, which must approve any increases. The groups say that a 1976 state law prohibits a utility from charging ratepayers for a new plant before it is built.

"This is a direct attempt to circumvent the will of Missouri voters and start charging us for a power plant before it is built," said Mark Haim, spokesman for Missourians for Safe Energy.

The Construction Work in Progress law, or CWIP, was approved by state voters during a grassroots campaign to stop the utility--known then as Union Electric Co.--from building a second nuclear plant southeast of Fulton.

The utility recently submitted an application for a second reactor to the federal Nuclear Regulatory Commission, and plans to ask state lawmakers to overturn the construction restriction in the next legislative session.

AmerenUE in April asked state utility regulators for a 12.1 percent electric rate increase that would boost revenues by $251 million each year. The utility has spent an estimated $51 million preparing the nuclear plant license application and wants to include that amount in its rate increase.

"Anyone can intervene," said AmerenUE spokesman Mike Cleary. "It's up to the PSC to decide."

The state agency will convene hearings to consider the rate increase starting Nov. 17. The quasi-judicial proceedings could last seven business days, Cleary said.

Public Service Commission auditors, engineers and accountants are advising the oversight board to deny Ameren's request related to nuclear license expenses, the St. Louis Post-Dispatch has reported.

The St. Louis-based utility estimates that the full rate increase, if approved, would cost the average household $9 per month--an amount that could vary with usage.