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| Serving Callaway County communities since 1875. | www.fultonsun.com | Saturday, March 20, 2010 |
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Ameren customers give voice to concerns over proposed rate increase By BEN YARNELL For the Fulton Sun
The meeting was one of 14 the Missouri Public Service Commission is hosting across the state on the 18 percent increase sought by AmerenUE. The meeting was broken up into two portions. The first allowed Ameren customers to question Warner Baxter, the company's chief executive officer. Many of the questions came from personal experiences. One issue raised was how utility officials expected individuals on fixed incomes or struggling to make ends meet to pay if rates rise while the company anticipates an 11.5 percent return on equity. "It would seem that AmerenUE should have to share the pain of the rest of us," one member of the crowd commented. Baxter said the money was necessary for the company "to invest in the energy infrastructure on a timely basis and to continue to improve the liability, as well as for the overall economy of the state." Baxter also cited competitors as proof that Ameren's requests were not unreasonable. Some questions, however, took a more direct aim at how the AmerenUE CEO would profit from the increase. The point was raised by Michael Brownstein, who told those in attendance that he had Baxter's income tax figures from 2008. Using those numbers, along with statements by Ameren's board that Baxter would receive a 60 percent incentive if he does "really well" in 2010, Brownstien claimed that the CEO would stand to earn close to an estimated $380,000 bonus, pushing his yearly earnings to nearly $2.34 million. Baxter claimed the only thing reflected in customers' rates is his base salary and said there would be no change in executive salaries for the 2010 fiscal year. His comments drew audible skepticism from the crowd. The second part of the meeting was handled similar to a court hearing as individuals from the crowd were called to give testimony regarding their views on the proposed hike, which is estimated to cost $402 million. The majority of those who testified echoed many of the questions asked earlier. Many cited personal financial struggles as reasons for why the average consumer should not have to shoulder the burden being asked of them. Not everyone testified in opposition to the rate hike. Mike Walter, who was at the meeting representing the International Brotherhood of Electrical Workers Local 1439, described the partnership between the IBEW and AmerenUE. He said from what he could see in his dealings, the need for an increase was necessary, whether it be a full 18 percent or some portion. "There is some merit for some type of increase or we are not going to continue to make up what we have lost in the last 17 years," Walter said, referring to impacts he said that came from deregulation in 1992, along with a cut by utility companies of staffing and extended maintenance schedules. By law, the commission is required to make a decision regarding the requested increase 11 months from the time it was first submitted, which was on July 24, 2009. |
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