PEORIA, Ill. – Ameren Illinois says they don’t like the increase in power prices any more than you do.
But, by and large, spokesperson Tucker Kennedy says power bill increases as much as 55 percent on some customers’ bills, are all but out of their hands.
“The natural inclination is to say that Ameren Illinois is the cause of this, or Ameren Illinois is raising these prices and these rates,” said Kennedy. “The reality of this is it’s a market issue. It’s a market phenomenon.”
Kennedy says it’s a variety of factors: increased natural gas prices, which power power plants, economic conditions, and yes, even the situation in Ukraine.
Speaking of natural gas prices, remember that problem with the Texas power grid back in February of last year, right in the middle of an extreme cold snap?
“When demand really spiked in that February, 2021 time period, we had to go out on the open market and get gas — so did a lot of other energy companies,” said Kennedy. “That price went up significantly,” but it was able to be amortized over an 18 month time period.
Another factor in the rise in prices, Kennedy says, has to do with renewable energy, and production not yet even with energy demand, which is increasing.
“Some of these renewable sources, as we know, are not always on. The sun doesn’t always shine. The wind doesn’t always blow,” said Kennedy. “There’s a gap to fill there, and that’s part of the reason we’re in this situation now. We’ve got to get more of that renewable energy online, so that we can begin to close that gap.”
Kennedy says Ameren Illinois supports Illinois’ clean energy laws, requiring coal-fired power plants to be gradually shut down, and increasing the use of renewable sources.
He says one more reason you should not blame Ameren for the price increases: they just distribute the energy, not produce it.
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