Instead of us paying more, Ameren execs could take less
AmerenUE now wants an 18% rate hike. The third requested in 3 years.
Here is a better idea. Why don’t we have Mr. Baxter and all the high-paid execs take a big pay cut.
Instead of making their millions in pay, bonuses & stock options, how about all of them taking a pay cut to $500,000 a year and no bonuses for the next 5 years. Think of the millions they would then have to help pay for what they say they need.
Oh, my - only living on half a million instead of $3-4 million?
But, while everyone else is out of work and others taking pay cuts, they want another rate increase.
The PSC should just say no. But we know that Ameren & Laclede Gas have them in their pockets, so while we are unemployed we will have to put up with another increase.
Jo Donze
St Louis
What’s it to you how much employees of a company make in salary/bonuses? You have no idea what it takes to run a big company. No clue whatsoever.
Following your line of reasoning (if you can call it reason) we should ask Pujols and his friends to reduce their exhorbitant salaries and play for $50,000 a year so tickets will cost less. Or how about asking the Rams players to play for $49,000 a year (unlike the new draftee who signed for $60,000,000 MILLION) so we can go see a game for less? Get real.
You are absolutely correct there Frank. Isnt it interesting how these liberals are so much against corporations. However, so many of them are the first in line to demand the owners of the Cardinals to pay more to all the stars. Also, I dont see those liberals complaining about what Oprah makes or so many of the stars of Hollywood.
Actually…a few FACTS about Ameren and the rate case….(and no, I’m not shill for Ameren)…
FACT: Ameren has several operating divisions, in 2 states. BY LAW, money earned in Illinois cannot be used to support Missouri operations, and money earned in Missouri cannot be used to support Illinois operations.
THEREFORE: The Ameren UE rate case is to cover operating costs for the Missouri operations ONLY.
FACT: In 2008, 55% (more or less) of the corporate earnings came from Illinois operations in the deregulated market. With the collapse of electric power wholesale costs, that number is expected to drop to less than 35% in 2009.
THEREFORE: Executive bonuses are based on earnings per share of the corporation. That number is going to be WAY DOWN in 2009. The bonuses of the big boys will be considerably lower next year than they were this year.
FACT: The Taum Sauk rebuild is not being paid for out of rates. The legal decision in that case stated that from the get-go. It’s being paid for out of a combination of an insurance settlement and reduced dividends.
Do they need to full rate increase? I can’t say. I could suggest that if you’re going to argue against it, argue with facts, not screaming talking points. Don’t ever forget that Utility regulation came into existence a long time ago as an ultimate carrot-stick device. The company is REQUIRED to provide a service to all who apply for it. In return for meeting that requirement, they company is entitled to a reasonable return on the massive infrastructure investment made to provide that service. Nothing is free, folks. The only numbers that matter in this rate case are the costs of the Missouri electric operation, and whether the rate is sufficient to provide for those costs plus a legally defined profit margin. Money earned in Illinois means nothing to the rate case.
Jo, I’m totally with you. They are making too much–especially when they have such a poor record (oh, trim trees AFTER a major outage? Taum Sauk? That was definitely some excellent management.) BTW, Frank and SuperDave–I have never understood why “entertainers” make so much. I do agree that doctors should make what they do (for the most part.) Anyone who is responsible for delivering a baby or emergency surgery when it is necessary and not “scheduled” and is required to have high level skills and an extensive education–yup, I agree they have earned it. However, I think the discrepancy between emergency workers, teachers, etc. and the supersalaries of the not very talented (Ryan Seacrest, I mean, really!) is disgusting. (I’ve never heard of liberals wanting baseball players to earn higher salaries, SuperDave, where did that come from?)
All those who want to continue to take a baseball bat to Ameren…..go right ahead. Keep in mind that they still have the cheapest rates nationwide and their service is very comparable compared to other electric utilities. Get real facts to complain about before just complaining because the media hyped you up to it.
Rate increase aside, the real consideration should be finding ways to decentralize power. By that, I mean the centralization of power as in electricity and concentration of power as in corporations. Afterall, Ameren finds themselves in the enviable position of controlling the power requjirements of millions of citizens. The issue should be not the consideration of a rate increase, but the consideration for enabling consumers to divest themselves from Ameren.
What the planet needs is not concentrated electrical power but distributed electricity where each home becomes its own power supply. Now, I’ve heard all these cost arguments against solar and wind running up to $30,000 dollars per home. Where there is a will there is a way, so by doing a little investigation I found that between 0 and $30,000, I put together a solar wind system for about $4500, which is capable of powering most of my house. So, the question is how do we extrapolate the cost of 18% and provide it directly to home owners for distributed power, and tell Ameren to take a hike.
Al
There’s a word for a culture that imposes controls over business conduct and pay, while pretending that the business’ are private. While we’re not permitted to use that word in polite talk, it is ruining / has ruined what was once a great country.
egoist: I know what you’re saying in the background. Before you apply that term to Utilities, you might want to study the background and history of utility regulation and why it exists. It begins and ends with this: An electric utility company is, in economic terms, a natural monopoly. Understand that concept, and then you’ll understand the regulatory system.
Frank, Superdave, and the Egoist…There’s no such thing as a purely private company. Being the experts you are, you should understand that all economic systems must have rules and regulations in order for capitalism to work. Every economist in the free world agrees.
HS is correct, Ameren is a monopoly. Unless you want to invest $60,000 in solar cells and hope it doesn’t rain for 3 days, you don’t have much choice.
Frank, you do have a choice to paint your face red and scream “Go Cardinals”…and if it cost you $250 to bring you family, go for it….Albert should get a cut of your frivolous spending. Before the players union said enough in 1970, the multi-million dollar owners were paying ballplayers $32,000 a year.
If you don’t like regulations placed on businesses and corporations, move to China….There, Alice Walton can chain 12 year old girls to sewing machines for 16 hours a day @ 23 cents/hr… so she can buy another $78 million dollar Rembrandt. The 3 stooges I named above will call you a commie or a socialist is you’re against such human injustices…
But I ask, who’s the real communists here who unknowingly and ignorantly espouse a 2 class society?
What a beautiful economic system you clowns strive to achieve.
Garrison - “free world”?
Thomas Sowell, Walter Williams, Richard Salsman