Are Electricity Prices Going Up Everywhere?

For the second time this year, announcements came out that Ameren electric customers will see increases in their service that will ultimately result in higher electric bills.

The Midcontinent ISO capacity auction for 2015-16 came back at a clearing price of $150.00/MW-day. That is almost ten times higher than the current capacity price.

Capacity is a large component of the supply portion of electric supply. It is a cost that is designed to entice generators to ensure there is enough energy on the electric grid at any one time to cover all customers’ peak demand.

This news comes out on the heels of the major increase in delivery charges that took effect for Ameren customers in January of this year. The delivery increases is designed to improve the quality of the grid that electricity flows on. This 17.4% increase will only compound the overall cost for electric supply, once Ameren sets its supply rates. Ameren rates for electric supply will change on June 1, 2015.

To start creating an energy strategy for your business, contact one of our senior advisors today at 1.800.920.4631. We are here to answer any questions you have.

Matt Helland
Sr. VP of Client Relations