Storm hardening, electric grid upgrades and new generation underpin request to update electric rates in mid-2027
Ameren Missouri has filed a request with the Missouri Public Service Commission to increase electric rates in mid-2027, citing costs for system upgrades and new power generation. The utility states that data center projects will contribute $21 million in customer savings over the next two years and that data centers are required to pay 100% of their connection costs. The PSC will conduct an 11-month review of the proposal.
Ameren Missouri has submitted a request to the Missouri Public Service Commission (PSC) to update its electric rates, which, if approved, would take effect in mid-2027. The utility seeks to recover costs associated with electric system upgrades, storm hardening, and the construction of new power generation assets, asserting these investments provide reliability and economic benefits to customers. Aaron Melda, Chairman and President of Ameren Missouri, highlighted that recent infrastructure and smart technology installations have already prevented over 260,000 customer outages during major storms.
The proposed rate adjustment would increase the average residential electric bill by approximately $13 per month for customers using 1,011 kilowatt-hours. Despite this potential increase, Ameren Missouri states that its residential rates would remain well below Midwest and national averages. The PSC is expected to conduct an 11-month review before a final decision is made.
A significant aspect of the request involves how data centers impact customer rates. Ameren Missouri emphasized that it is not currently serving any large load data center customers and that the costs for infrastructure to support announced data centers are not driving this rate review. Vice President Rob Dixon noted that commitments from new data center customers are projected to deliver $21 million in base rate savings for other customers over the next two years, equating to about $11 million annually. The company’s "Powering Missouri Growth Plan" requires data centers to pay 100% upfront for all costs related to grid connection, aligning with Missouri Senate Bill 4, which establishes strict regulations for supplying power to data centers and ensuring customer protections.
Ameren Missouri also detailed various financial assistance programs and flexible payment options available to help customers manage their energy costs, including a proposed income-eligible discount rate to offset the adjustment for vulnerable customers. These initiatives, like Dollar More, LIHEAP, and Keeping Cool, aim to provide support and tools for energy management to the 1.3 million electric and 135,000 natural gas customers across central and eastern Missouri, including the greater St. Louis area.