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Rising Power Prices

Ameren Illinois Updates

Higher energy prices (electricity and natural gas) will continue to impact monthly utility bills into the winter heating season. The causes are varied but include a tight supply/demand balance, record low coal inventories and high coal prices driving increased natural gas power generation, and a rise in U.S. natural gas consumption compared to 2021.

 
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 Care Plan

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.


 

Frequently Asked Questions

Some factors driving higher winter costs and creating price volatility:
  • Tight supply/demand balance, combined with low stored-gas inventory nationally.  
  • Record low coal inventories and high coal prices driving increased natural gas power generation. 
  • U.S. consumption of natural gas is up in 2022 over 2021. 
  • The Russian invasion of Ukraine has constrained domestic energy supply as producers export LNG to eastern European countries.  
  • Natural gas is the principal fuel source to generate electricity.  Higher demand for electricity this summer drove up the costs of natural gas.  
Actual bill impacts are weather and usage dependent. With normal temperatures, Ameren Illinois estimates utility bills for residential customers who heat their homes with natural gas will be 25% higher than last season.

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). 

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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.   

  • The price impact will depend on the agreement between you and your retail supplier (which Ameren Illinois does not have knowledge of). Approximately 60 percent of Ameren Illinois customers are served by a third-party supplier.
  • Neither Ameren Illinois nor the IPA establishes power prices for alternative suppliers.
  • As a delivery-only company, Ameren Illinois supports customers’ ability to choose an alternative electric supplier.
  • Customers can visit the Illinois Commerce Commission website at www.pluginillinois.org to learn more about electric choice and review a list of approved suppliers.

Your Budget Billing amount is reviewed three times a year and adjusted based on your energy usage and changes in energy costs.

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