KBIA Local
(2010-02-09)
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COLUMBIA, MO
(KBIA) -
The Missouri Public Service Commission may approve even higher electric rates for residents. One civil rights organization says that's unfair to low-income residents. The state chapter of the NAACP is urging the Missouri Public Service Commission to address the difference in electric rates for residents versus large industrial companies. Currently, Ameren UE charges residents seven-point-seven cents per kilowatt hour while only charging industrial customers three-point-three cents.
Now, the Missouri Public Service Commission is reviewing a proposal by Missouri Industrial Energy Consumers. It would increase electric rates for Missouri residents by thirteen-point-three percent while decreasing rates for industrial companies even further. Executive Director of the Missouri Public Service Commission Wess Henderson says there are several reasons why industrial customers are charged a lower rate.
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"A large industrial customer could just have one line going from the electric plant out to their site where, in order to serve residential customers it would take numerous lines, it would take substations, it could take numerous distribution lines and things like that that add to the cost of those rates"
National Board Member of the NAACP Harold Crumpton is a former public service commissioner. Crumpton says he understands the costs that go into residential electric rates, but that lower-income families simply cannot afford these increases."The rates should track very closely with the cost of providing that service. But if it's unreasonable to force all of the costs onto the residential customers who have least in many instances the lowest ability to pay, I think that's unreasonable"
Henderson says all five members of the commission will ultimately determine whether or not any further increases will be made by June 21st. © Copyright 2012, KBIA