JEFFERSON CITY (MissouriNet) -- Ameren Missouri plans to increase its electricity rates for the 1.3 million customers it serves in the central and eastern parts of the state.

The Missouri Public Service Commission has approved the St. Louis-based utility’s request to raise rates for its residential, commercial, and industrial customers.

The average residential customer is expected to see their monthly bill increase by about $5.50. The rate hike is set to begin on July 1.

Ameren sought to increase its annual revenues by about $316 million, but $140 million is what was ultimately agreed upon by the company and the commission.

Last August, the company cited that investments in the Ameren Missouri system as part of its Smart Energy Plan, increases in the cost of capital since the last rate review, higher depreciation costs, and other changes in the cost of providing service to its customers are among the reasons in why it made the request to raise rates to begin with.

“Our electric customers are experiencing greater reliability and benefiting from cleaner energy because of the investments we have made for a stronger, smarter, and more resilient grid," said Mark Birk, Chairman and President of Ameren Missouri. "We will continue working to keep rates as low as possible while focusing on necessary and prudent system upgrades our customers depend on for long-term energy resiliency and reliable service.”