Some Ameren Illinois customers in central and southern Illinois will receive a credit on upcoming power bills. The credit comes from a $38 million settlement between the state and Dynegy Inc.
The decade of investigation and litigation that lead to the settlement stemmed from a 2015 electricity capacity auction conducted by the Midcontinent Independent System Operator [MISO]. That resulted in an electricity capacity price 40 times higher than all other zones and nearly nine times higher than the prior year price, according to the Illinois attorney general’s office.
“Dynegy manipulated the market to overcharge electric customers by taking advantage of rules that have already been deemed unjust and unreasonable,” said Attorney General Kwame Raoul.
The public interest organization Public Citizen, Southwestern Electric Cooperative and Illinois Industrial Energy Consumers argued the MISO price was unjust and unreasonable.
At the time, Dynegy had recently acquired several Ameren power plants. As a result, Dynegy was able to set the capacity price for central and southern Illinois at $150, up from $16.75.
The consumer advocates argued Dynegy’s unchecked market power let them charge far more than a competitive amount because the demand for power in Illinois could not be met without it.
The Federal Energy Regulatory Commission approved the settlement in August.
Under the agreement, Ameren residential and small commercial customers on Basic Generation Service or Real Time Pricing supply rates will get one-time credit refunds to offset their Ameren electricity bill. Consumers can expect to see the credits applied beginning this month based on energy use.
