GALESBURG, Illinois - As youngsters prepare for a Salvation Army camp, it seems the best of times. But word of Ameren's rate request is tough on a Galesburg community that already knows about the worst of times.

"It really scares me," said Bea Doran, East Galesburg. "The cost of food is going up. Transportation is going up."

Doran, a single mom with three kids, could pay about $150 dollars more each year for utilities. Two-thirds of that figure would pay for electricity and a third for natural gas.

"We're already to the point where you're stretching budgets trying to make things come together," she said.

Ameren says it needs the $226 million hike to remain viable. Costs associated with everything from labor to storm damage are increasing. And the credit crunch is hitting the company, too.

It comes at a bad time for Galesburg area businesses like Gates Rubber. The longtime plant installed its own energy efficient measures to save money. But higher utility rates make it harder to grow business while competing in a global economy.

"It gets to the point where price is the bottom line," said Plant Manager Logan Stiers. "And if we have to raise our costs, it can affect everyone's business."

Galesburg's Salvation Army spent nearly $900 on utilities in May. That's a big chunk of its operating budget.

"Maybe show a little compassion," said Rick Ray, Salvation Army. "We've got to give someone a break somewhere."

It will be about an eleven month long process with the Illinois Commerce Commission. If approved, Ameren utility bills would likely increase in May 2010.

Starting in August, Ameren will begin to print the impact of new rates on bills. That way, residential and business customers will have an idea of what the rate increase could cost them.

While Ameren says it understands the challenges and impact, on customers, struggling families say that the timing is all wrong.

"It's just hard to find a job," said Meranda Ashby, East Galesburg. "You more or less work to pay your power bills any more."

"It is a big deal," Doran added. "It's impacting a lot of people especially in our community."

A community with happy days at the camp countered by economic reality.