Water and electricity rates for St. Louis-area residents could simultaneously increase, resulting in higher customer bills, after the area’s biggest water and power monopolies filed for nine-figure revenue increases in recent days.
The back-to-back moves from Missouri American Water and Ameren come after each utility had rate increases take effect last year, following a roughly yearlong approval process. The requests were filed with the Missouri Public Service Commission.
Both companies said in filings that investments in infrastructure were the primary catalysts to seek boosts in revenue.
Missouri American Water serves approximately 1.6 million people in the state — the bulk of whom live in suburban St. Louis. The utility aims to secure $195.6 million more than its previously authorized revenues of $437.5 million — a proposed leap of 45%.
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If approved in full, the request would result in statewide residential customers paying about $18 more per month, if they use about 5,500 gallons of water per month, said Christie Barnhart, a spokeswoman for the company. But she warned that bill impacts could “vary a lot regionally.”
Missouri American Water said the proposed rate hike marks “an opportunity to recover its reasonable cost of service and earn a reasonable return on capital invested in its water and wastewater systems,” according to one filing. It added that its infrastructure investments account for 83% of its total requested rate increase.
Ameren, the St. Louis-based electric company, said its new push for an increase follows a “fairly typical” schedule, according to Steve Wills, a senior director of regulatory affairs for the utility.
Ameren is seeking an annual increase of $446.2 million, or about 15% more than its currently authorized revenue. Company officials cited its investments in power grid resilience and reliability as principal justifications for the proposed rate hike.
If approved without changes, the rates proposed by Ameren would raise bills by about $17 per month for typical residential customers, said Wills. Even so, he said the company’s customers would still pay less for power than people in other parts of the region.
It will be a while before the rate increases sought by either utility are approved or take effect. The requests must be reviewed by Missouri utility regulators, while state and independent watchdogs have chances to review the proposals and raise concerns.
The process typically takes about a year before any new rates are finalized.
View life in St. Louis through the Post-Dispatch photographers' lenses. Edited by Jenna Jones.