Watchdog group challenges Ameren rate hike before state regulators

Published 8:04 am Friday, July 31, 2026

CHICAGO — A consumer watchdog group is challenging a proposed rate increase and more than $300 million in spending in Ameren Illinois’ grid upgrade plan in two cases pending before the Illinois Commerce Commission, the Citizens Utility Board announced Thursday.

“Both of these cases will impact future Ameren electric bills, so we urge electricity customers in central and southern Illinois to let state regulators know that real people are impacted by these cases and Ameren shouldn’t get a blank check,” said Sarah Moskowitz, executive director of the Citizens Utility Board.

In the first case, Ameren is seeking to recover an additional $65.3 million from customers through a 2026 “reconciliation” filing, a yearly process that allows the utility to recoup costs that exceed its budget under a multi-year rate plan the Illinois Commerce Commission approved through 2027. The Citizens Utility Board opposes the reconciliation process generally and says it identified at least $14.8 million in overcharges within Ameren’s current request.

“We will always challenge wasteful spending in these reconciliation cases,” Moskowitz said. “But we support ending this reconciliation benefit for electric utilities. Ameren must manage its budget responsibly — when it doesn’t, the burden shouldn’t fall on customers.”

The second case involves a $2.8 billion, four-year plan Ameren filed in January to upgrade its local electric distribution system. Under the 2021 Climate and Equitable Jobs Act, Ameren must demonstrate that its grid investments advance the state’s clean energy goals while remaining affordable for customers. The commission rejected an earlier version of Ameren’s grid plan in 2023 for failing to prove affordability; an amended version was later approved after consumer advocates helped reduce the utility’s proposed spending.

In the current case, the Citizens Utility Board has filed testimony calling for more than $300 million in spending cuts, arguing Ameren overstated future electricity demand and should be required to justify major capital investments by showing it considered lower-cost alternatives.

“Ameren’s proposed grid plan is excessively costly to customers,” Moskowitz said. “It’s never okay to overspend with other people’s money. We urge state regulators to protect customers and hold this monopoly accountable.”

Among the group’s specific objections: $125 million in proposed capital spending tied to new reliability standards that the group says overlooks cheaper alternatives, such as vegetation management; a $78.4 million reduction it says is warranted because Ameren overstated projected customer growth; and rejection of a $44.1 million economic development fund the group says lacks an identified purpose. The group also flagged $59.2 million in spending for smaller reliability projects it says Ameren has consistently underspent in past years, a $20.3 million hydrogen generation pilot project it called financially risky, and $14.7 million tied to pole-replacement targets it says Ameren has a history of missing.

The Illinois Commerce Commission is expected to issue a proposed order in the grid plan case in October, with a final order likely in November or December. That case will determine the scope of the grid plan itself; a separate rate plan determining how customers will pay for the upgrades is expected to be proposed by Ameren in 2027.

The Citizens Utility Board is a nonprofit utility watchdog group created by the Illinois Legislature in 1984 to represent residential and small-business utility customers. The organization says it has helped save consumers more than $20 billion by blocking rate increases and securing refunds over more than four decades.