8-KOther Events

AMEREN CORP 8-K Report (Jan 8, 2002)

Filed January 8, 2002For Securities:AEE

Summary

Ameren Corporation (AEE) announced a significant development regarding an earnings complaint case filed by the Missouri Public Service Commission (MPSC) staff against its subsidiary, Union Electric Company d/b/a AmerenUE. The MPSC issued an order on January 3, 2002, establishing a new procedural schedule and revising the test year for determining rates. Notably, the MPSC has agreed to use a more current test period (July 1, 2000 to June 30, 2001, with updates through Sept. 30, 2001), a departure from the MPSC staff's original proposal. This decision is seen as prudent by Ameren's management, who believe it will lead to a more accurate rate determination. Furthermore, Ameren Corporation has revised its 2001 earnings per share estimate upward, from $3.30-$3.45 to $3.40-$3.50. This revision is attributed to the expectation that the impact of future incentive regulation will not affect 2001 net income, contrary to previous assumptions. The company also highlighted that its 2001 earnings and 2002 estimates will be released on February 5, 2002. The regulatory proceedings will continue with testimony filings in March and May 2002, and hearings scheduled for July and August 2002.

Key Highlights

  • 1MPSC establishes a new procedural schedule and revises the test year for the earnings complaint case against AmerenUE.
  • 2The MPSC will utilize a more current test year (July 1, 2000 - June 30, 2001, with updates) for rate determination, aligning with a joint proposal.
  • 3AmerenUE will have the opportunity to propose an incentive regulation plan in the current proceeding.
  • 4Any potential rate decrease determined by the MPSC would be retroactive to April 1, 2002.
  • 5Ameren Corporation revises its 2001 earnings per share estimate upward to a range of $3.40 to $3.50.
  • 6The company excludes a 5-cent per share reduction related to the adoption of SFAS No. 133 for derivative instruments from its 2001 earnings estimate.

Frequently Asked Questions

The MPSC staff filed a complaint in July 2001 proposing a substantial reduction in AmerenUE's annual electric revenues in Missouri. This 8-K filing details the MPSC's order on filing requirements and a new procedural schedule for this case.

The MPSC's decision to use a more current test year (July 1, 2000 - June 30, 2001, with updates) is considered favorable by Ameren, as it uses more recent financial data. This could lead to a more accurate and potentially favorable rate determination. If a rate decrease is ultimately ordered, it will be retroactive to April 1, 2002.

Ameren has revised its 2001 earnings per share estimate upward to $3.40-$3.50 from $3.30-$3.45. This revision is because the company no longer anticipates that the impact of a future form of incentive regulation will negatively affect its 2001 net income, contrary to previous assumptions.

Ameren Corporation plans to release its 2001 earnings and estimates for 2002 earnings per share on February 5, 2002. A conference call and internet broadcast will be held on that date to discuss these details.