Just reviewed my neighbor's Empire Electric bill here in Springfield and they're charging $47 monthly for something called an Infrastructure System Replacement Surcharge. For a residential customer! The bill shows 847 kWh usage at $0.087/kWh but then this massive $47 infrastructure fee that's bigger than the actual electricity charge. This has to be illegal - residential customers shouldn't be paying for utility infrastructure improvements through surcharges. Anyone else seeing Empire Electric pull this scam?
Empire Electric infrastructure rider - $47/month for residential?!
Elmer, that sounds like highway robbery! Here in Arkansas, Entergy tried to implement a similar infrastructure rider a few years ago but the PSC shot it down. Residential customers are supposed to get infrastructure improvements through base rate increases, not add-on surcharges. You need to file a complaint with the Missouri PSC immediately. That $47 monthly charge is probably more than most customers pay for actual electricity usage.
This is exactly the kind of abuse that gives our industry a bad name. Idaho Power tried something similar with a "grid modernization surcharge" but we fought it tooth and nail. The problem is utilities know most residential customers won't challenge a $47 monthly fee, even though it's outrageous. Elmer, check if Empire Electric even filed the proper tariff with Missouri PSC. Often these surcharges are implemented without proper regulatory approval.
Warren's right about checking regulatory approval. Xcel Energy here in Colorado got slapped down by PUC for implementing infrastructure charges without proper proceedings. The issue is utilities are trying to accelerate cost recovery for capital improvements instead of waiting for rate cases. Elmer, you should organize other Empire customers and file a class action complaint. A $47 monthly surcharge affecting thousands of customers adds up to serious money.
I know this thread is old but I'm seeing similar issues with MLGW here in Memphis trying to sneak through infrastructure surcharges. The pattern is always the same - utilities claim they need the extra revenue for system improvements but the improvements benefit their shareholders more than customers. These surcharges are essentially unregulated rate increases that bypass normal regulatory oversight. File complaints early and often, and demand detailed justification for every dollar.
Randy makes a great point about unregulated rate increases. Here in Florida, FPL has been pushing infrastructure riders for years claiming storm hardening and grid modernization. The reality is they're using these riders to boost profits while shifting risk to customers. I've recovered thousands for clients by challenging the supporting documentation. Most utilities can't justify the calculations when you demand detailed workpapers.