ST. LOUIS - Ameren Corp. says its utilities ought to be earning more money in Illinois, and it's ready to file paperwork before the end of the year requesting a profit increase.

Am ;eren, parent company of Am ;erenIP, AmerenCIPS and AmerenCILCO, says it expects to earn a less than 5 percent return on its utility businesses in 2007, but state regulators have set the maximum it can get at 10 percent.

Addressing power industry analysts at a New York City conference Wednesday, St. Louis-based Ameren said it needs more money to cover its costs and earn reasonable profits from delivering electricity and gas to homes and businesses. It wants to edge closer to that 10 percent ceiling but didn't say how much closer; every 1 percent upwards is worth more than $20 million in pretax dollars to the company.

Ameren utilities only make their profits from charges made to deliver electricity and natural gas, a small part of the overall power and energy bill. The company says electricity delivery rates are tied to cost figures four years out of date, and it claims gas delivery charges have been stagnant for "some time."

Warner Baxter, Ameren's executive vice president and chief financial officer, said the fact his company wants more should come as no surprise to the Illinois political leadership.

"We've made it very clear to all of the leadership, in ;cluding the governor's office and others, that we could not continue to sustain these types of returns on our Illinois-regulated businesses," Baxter said. "So we have informed them that we plan to file (rate increases) by the end of the year."

The Citizens Utility Board, a watchdog group on behalf of consumers, said it was aware of Ameren's plans and opposes them. The group disputes that Illinois utility profits will total only 5 percent and says Ameren doesn't need a raise.

"Obviously, we are going to do everything we can to stop it," said David Kolata, the board's executive director. "We certainly don't see any evidence that they deserve more."

News that Ameren is seeking extra profits comes at a delicate time for the company. Gov. Rod Blagojevich recently signed off on a $1 billion electricity bill relief package negotiated between state legislators and Ameren and Commonwealth Edison.

The package gave amounts ranging from $100 to $1,000 back to customers in cash and credits; those same customers have seen bills jump between 45 percent and 80 percent after a 10-year rate freeze ended at the start of the year.

Blagojevich warned the power companies, however, that he was signing the measure reluctantly, and he said consumers should have received more help.

Analysts at the Lehman Brothers CEO Energy/Power Conference questioned Baxter on whether he anticipated a legislative backlash when the request for higher rates goes before the Illinois Commerce Commission, the state's utility regulators.

Baxter emphasized the fair warning the company had given about its intentions and said it was important to remember it was only asking for a raise in the section of the bill covering power and gas delivery charges, where it makes its money.

"In terms of the impact on customers, it's important to be mindful that the distribution piece ¦ is only 25 percent of their total bill," he added. "¦ The overall impact on customers is mitigated. ¦"

In clarifying comments later, AmerenIP spokeswoman Natalie Hemmer said customers also should note that the commerce commission review process would take 11 months and the outcome for Ameren was far from certain.

"In our last electric delivery service increase, we had asked for $200 million," she said. "But by the time all was said and done, there was over $100 million that was disallowed. The ICC doesn't necessarily sign off on requests; they generally make changes."

In his presentation, Baxter was keen to show analysts that, despite the uncertainties of the regulatory process, Ameren still looked like a good bet for investors.

He pointed to overall dividend yields of 5 percent, which puts Ameren in the top five financial performers among power companies. Earnings per share this year were expected to be in a range of $2.80 to $3.05, and Baxter said the company had made solid investments to ensure it provided solid, reliable service at reasonable rates.

Tony Reid can be reached at treid@herald-review.com or 421-7977.