Dive Brief:

• Ameren has filed a new rate case with the Missouri Public Service Commission to raise customer rates by $264 million, or 10%, starting June 2015.
• The utility cited higher net fuel costs, which have gone up as prices for the wholesale power it sells to other utilities have gone down.
• The utility is also seeking a return on equity (ROE) of 10.4% for its investments, above the 9.8% ROE it is currently allowed by Missouri regulators.

Dive Insight:

The new rate increase would result in around a $10 per month average rate increase for households, according to the utility. Ameren said it needs the increase to further invest in renewable energy. Other factors include: grid and infrastructure modernization needs, the cost of meeting state and federal environmental regulations, higher taxes, and expected costs from the closure of its Meramec coal plant in 2022.

This is the sixth rate increase filed by the utility since 2006 with state regulators. Over that time, electricity rates have gone up about 42%. If this case goes through they will have gone up by more than 50%, although regulators tend to lower the amount before approval is granted.