Oct. 29--PEORIA -- The $226 million rate increase proposed by Ameren Illinois Utilities comes at a bad time -- especially for senior citizens, an AARP representative said Tuesday night at an Illinois Commerce Commission hearing in Pekin.

"We feel it's the wrong time, with the economy the way it is," said Mary Patton, an AARP lobbyist since 1998. "With all their other expenses going up, seniors are in a bind."

Many senior citizens already are spending as much as 20 percent of their income on utilities, she said.

"This issue doesn't only affect seniors, but anyone paying utilities, including small businesses," Patton said.

Patton was one of 12 people who attended what was the third in a series of statewide hearings conducted by the ICC.

Ameren Illinois has petitioned the ICC to increase natural gas rates by $45 million and electricity rates by $180.6 million.

For Ameren CILCO customers, the hikes would amount to an additional $38 per year for gas usage and $63 per year for electricity in the average household.

"We recognize that any rate increase will be cause for concern," said Scott A. Cisel, president and chief executive officer of Ameren Illinois Utilities. "However, be assured that our proposed rate increases are necessary to provide the essential financial resources to meet our obligations to our customers."

The commission is expected to make a decision by April, said Jim Chilsen, communications director for the Citizens Utility Board, a Chicago-based state watchdog group that also opposes the rate hike.

"We think the company has overstated its expenses and doesn't deserve such a rate hike," said Chilsen, noting Ameren received a $162 million rate increase last year.

Referring to a recent study by Madison, Wis.-based consultant Steve Fenrick, Chilsen said as Ameren fought for a rate hike in 2008, its electric utilities spent $158.5 million beyond what even an average utility would be expected to spend.

"That puts Ameren in the bottom third of the study's 115 utilities," Chilsen said. "This is a company that should put its own house in order before going to Illinois consumers for a bailout."

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