We know this is frustrating for our customers; it's frustrating for us at Ameren Illinois, too. Many people are facing challenging times, and no one wants to see higher energy bills.
Energy customers across the nation are facing soaring electricity and natural gas prices. We know our customers count on us every day for the energy they need, and no one wants to see increases in their energy bills. We are committed to helping you navigate these challenging times. The Energy Care Plan includes low-cost, easy to implement steps to manage your monthly energy bills.
The price of natural gas is determined by factors such as supply and demand, weather, imports and exports, underground storage levels, and natural gas production.
The Illinois Power Agency (IPA) buys wholesale electricity for residential and small commercial customers who have not made the switch to an alternative supplier. Utilities like Ameren Illinois are required to fulfill the IPA's pricing contracts and deliver that power to customers.
A subcomponent of supply, the capacity charge, is paid to electricity generators to ensure that there is enough power available on days when demand is high (like on extremely hot days). Capacity prices are set according to an annual auction conducted by the federal grid operator – MISO.
The cost of energy supply makes up more than half of the typical residential customer's bill. (The other portion is the delivery charge, paid to Ameren Illinois to maintain the pipeline infrastructure and distribute the natural gas to the homes and businesses).
Important: Ameren Illinois does not profit from energy supply. The costs of energy supply are passed through directly to our customers, dollar-for-dollar.
Ameren Illinois mitigates the impact of higher supply prices through storing and price hedging. More than 83% of the natural gas Ameren Illinois will deliver this year has already been purchased, at a fixed price, protecting our customers from extreme price volatility. Natural gas is purchased in the summer when prices are typically lower, stored in our underground storage fields, and ready for distribution to our customers.
The Ameren Illinois natural gas delivery system is well-supplied and able to meet customer demand throughout the winter.
We know this is frustrating for our customers; it's frustrating for us at Ameren Illinois, too. Many people are facing challenging times, and no one wants to see higher energy bills. We're being proactive. We want our customers to understand what goes into their bill, the factors causing the increases, and what actions they can take to conserve before temperatures drop.
Your Budget Billing amount is reviewed three times a year and adjusted based on your energy usage and changes in energy costs.