St. Louis Post-Dispatch November 16, 2007

Ameren rolls energy efficiency plan in Illinois

ST. LOUIS POST-DISPATCH

11/16/2007

Two weeks after seeking a $247 million annual increase in electricity and natural gas rates, Ameren Corp. on Thursday announced a sweeping energy efficiency plan in Illinois that could help those same customers lower their bills.

The plans were required by legislation approved during the summer that ordered $1 billion in rebates and refunds to customers of Ameren and Commonwealth Edison after electricity prices skyrocketed this year.

The measure required the state's two largest utilities to come up with plans to cut energy consumption, helping Illinois residents reduce their bills and postpone the need for new power plants. Thursday was the deadline for filing plans with the Illinois Commerce Commission.

Specifically, the law requires St. Louis-based Ameren and Commonwealth Edison, the Chicago-based utility, to cut electricity demand by 0.2 percent a year through 2015 while still allowing for growth as new customers move into the area and factories add production linesWhile the energy savings might seem small, targeted cuts in energy use by Ameren customers in the first year represent enough electricity to power 7,700 homes for a year, the company said. By contrast, energy usage by Ameren customers has increased 11 percent since 1997, utility spokeswoman Erica Abbett said.

"It's critical that we get started doing these programs," said Rob Kelter, senior attorney for the Environmental Law and Policy Center in Chicago . "Energy efficiency is good for the environment and its good for consumers. But the devil is in the details and we need to look very closely at this filing to make sure we're maximizing savings at the lowest possible cost."

Efficiency programs will be implemented beginning in June and require approval by the Illinois Commerce Commission.

Utilities are allowed to recover the costs of implementing the programs up to a certain level.

Ameren estimates the initial year of efficiency programs will cost $14 million, or about 30 cents a month for the typical residential customer. But customers who take advantage of the efficiency initiatives will more than offset the costs through savings on their bills, the company said.

Many details of specific programs have yet to be developed, Abbett said. They will mostly involve rebates and incentives to help offset the cost of weatherizing homes and purchasing energy-efficient appliances and compact fluorescent light bulbs.

The plans were submitted to Illinois regulators on the same day that governors from the Midwest agreed to work together to reduce energy consumption, focus more on renewable energy and limit greenhouse gas emissions. It was part of a regional summit on energy and climate change in Milwaukee .

The Associated Press contributed to this report.
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