Nov. 4--HOLLYWOOD, Fla. -- Ameren Corp. told power industry analysts Tuesday that its path to raising prices is being eased by superior customer service and because the request by its utilities to jack up electricity and natural gas delivery rates by $181 million had produced little negative reaction.

The comments came from Thomas Voss, Ameren president and chief executive, speaking to industry analysts at the Edison Electric Institute Financial Conference in Hollywood, Fla. The event was hosted at the luxury Westin Diplomat Resort and Spa and was attended by several of Ameren's top corporate officers and Voss' wife, Carol.

Voss seemed unaware of reaction Monday night in Decatur when a public hearing hosted by the Illinois Commerce Commission, the state's power industry regulators, saw speaker after speaker denounce the rate hike plans. Members of the public said they could not afford to pay any more in bills to utilities AmerenIP, AmerenCIPS and AmerenCILCO.

Speaking to the Edison meeting, Voss said the rate hike had been filed to recover the rising costs of "providing reliable service" and to allow the utilities to get a "fair return on investment." He added, "This (rate hike) was done during the legislative session and received a very, very mild response."

He said customers and regulators looked more favorably on the Ameren Illinois utilities because they were delivering better service. "Our focus on investments in reliability has resulted in higher-quality service, improved safety, better customer satisfaction and a more favorable image among our customers and our regulators," he added.

Voss did say, however, that the company realized higher bills were going to mean hardship for its customers at a time when the economy is struggling. "We are focused on controlling costs to moderate our need for higher rates," he said.

Chief Financial Officer Martin Lyons Jr. pointed to some $2 billion in cuts across the various divisions of Ameren and said a round of voluntary layoffs was being followed with an "involuntary separation program" happening now.

Lyons said Ameren's utilities deserved a decent return on their investments in reliability. He said the companies wanted to move more of the electricity delivery charges into "fixed monthly rates" rather then have them tied to the volume of electric use. He said the return on investment sought in the latest rate case ranged from 10.8 percent to 11.7 percent among the various utilities.

treid@herald-review.com 421-7977

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