8-KOther EventsExhibits & Filings

AMEREN CORP 8-K Report, Corporate Update (Apr 4, 2008)

Filed April 4, 2008For Securities:AEE

Summary

Ameren Corporation's subsidiary, Union Electric Company (AmerenUE), has filed a request with the Missouri Public Service Commission (MoPSC) seeking an annual revenue increase of $251 million for its electric service. This filing, dated April 4, 2008, is a significant event for investors as it directly impacts the company's future revenue streams and profitability. The requested increase is based on specific financial metrics including a 10.9% return on equity and a proposed rate base of $5.9 billion. The MoPSC has up to 11 months to review this request, with a decision expected by March 2009. The outcome of this rate case is uncertain, as AmerenUE cannot guarantee the exact amount of any approved rate change, its effective date, or whether it will be sufficient to cover costs and provide a reasonable return. Additionally, AmerenUE is seeking approval for a fuel and purchased power cost recovery mechanism, which could help mitigate future cost volatility.

Key Highlights

  • 1AmerenUE filed a request for a $251 million annual electric service revenue increase with the MoPSC.
  • 2The proposed rate increase is based on a 10.9% return on equity and a $5.9 billion rate base.
  • 3The MoPSC has up to 11 months to decide on the rate increase, with a deadline of March 2009.
  • 4AmerenUE is also requesting approval for a fuel and purchased power cost recovery mechanism.
  • 5The final approved rate increase, its timing, and sufficiency are uncertain.
  • 6The filing is expected to impact AmerenUE's future financial performance and profitability.

Frequently Asked Questions

The main purpose of this 8-K filing is to inform investors that AmerenUE, a subsidiary of Ameren Corporation, has filed a request with the Missouri Public Service Commission (MoPSC) to increase its annual electric service revenues by $251 million and to request approval for a fuel and purchased power cost recovery mechanism.

The requested rate increase is based on a proposed 10.9 percent return on equity, a capital structure of 51 percent equity, and a rate base of $5.9 billion, using a test year ended March 31, 2008, with updates for known changes through June 30, 2008.

The MoPSC has a period of up to 11 months to review the filing, and a decision is required by March 2009.

This mechanism, if approved, would allow AmerenUE to recover costs associated with fuel and purchased power, potentially providing a more stable earnings environment by mitigating the impact of volatile energy prices on the company's profitability.