Missouri Cities Challenge Ameren Over Skyrocketing Utility Rates Following Coal Plant Closure

Five Missouri cities are seeking state intervention after Ameren Missouri closed the Rush Island Coal Plant, resulting in utility rates 191% higher than other MISO zones, according to a complaint. The Missouri Public Service Commission will hear arguments this week regarding the rate hikes affecting Fulton, Marceline, New Madrid, Hannibal, and Kirkwood.

Why did electricity rates increase for these Missouri cities?

The closure of the 1.1GW Rush Island Coal Plant and a rise in local demand caused electricity prices to spike for the affected municipalities, according to the Public Service Commission. In the fall of 2024 and spring of 2025, cities in Ameren Missouri’s coverage area paid a clearing price of $719.81/MW-Day.

This figure contrasts sharply with other coverage zones across the Midwest and Great Plains. In those areas, the average clearing price was $15/MW-Day in fall 2024 and $24.10/MW-Day in spring 2025, according to the commission.

Did You Know? Ameren reached a $61 million federal court settlement in 2024 after it was found the company had illegally polluted the air.

How did pollution violations lead to the plant’s closure?

The dispute began when the cities accused Ameren of violating federal air pollution rules at the Rush Island plant. The News Tribune reported that Ameren added power generation to the facility in 2007 and 2010 without adding the required air pollution control devices.

Ameren Missouri asking for rate hike

Following the federal settlement, Ameren decided to shut down the plant in October 2024 with court approval. The company determined that closing the facility was more cost-effective than installing the necessary pollution control devices.

Expert Insight: Samantha Carter notes that this situation highlights the financial tension between environmental compliance and utility costs. When a provider opts for decommissioning over infrastructure upgrades, the resulting shift in power sourcing can lead to volatile clearing prices for local municipalities.

What may happen next in the Public Service Commission case?

The Missouri Public Service Commission is currently reviewing whether Ameren violated its PSC tariff or the original 1971 PSC order issued when Rush Island first opened. Arguments regarding these specific violations are scheduled for this week.

The cities may not secure financial compensation through this specific case. The PSC has already ruled that its jurisdiction is limited to tariff and order violations and does not extend to awarding damages.

Frequently Asked Questions

Which Missouri cities are affected by the rate increases?

The affected cities are Fulton, Marceline, New Madrid, Hannibal, and Kirkwood.

Why did Ameren close the Rush Island Coal Plant?

Ameren decided it would be cheaper to shut down the plant than to install required air pollution control devices.

How much did the affected cities pay compared to other zones?

According to a complaint, these cities paid 191% more than cities in other MISO zones.

Do you believe utility companies should be held financially responsible for rate hikes following the closure of non-compliant power plants?