8-KOther EventsExhibits & Filings

AMEREN CORP 8-K Report, Corporate Update (Jul 24, 2009)

Filed July 24, 2009For Securities:AEE

Summary

Ameren Corporation (AEE), through its subsidiary Union Electric Company (AmerenUE), filed a request with the Missouri Public Service Commission (MoPSC) on July 24, 2009, seeking an approximate $402 million increase in annual electric service revenues. A significant portion of this request, $227 million, addresses anticipated increases in normalized net fuel costs above those currently authorized. The remaining increase is attributed to investments in system reliability, rising operational costs, and higher financing costs. This filing also includes a request for interim rate relief of approximately $37.3 million, effective October 1, 2009, subject to refund. The company also seeks approval for new mechanisms to recover environmental compliance costs and continue utilizing its existing fuel and purchased power cost adjustment mechanism (FAC), providing flexibility in rate adjustments outside of general rate proceedings.

Key Highlights

  • 1AmerenUE is requesting a $402 million increase in annual electric revenues.
  • 2The revenue increase is driven by $227 million in higher net fuel costs and investments in system reliability and operational expenses.
  • 3A request for interim rate relief of $37.3 million is sought for October 1, 2009, pending final decision.
  • 4Proposed is an environmental cost recovery mechanism allowing rate adjustments for prudently incurred environmental compliance costs.
  • 5AmerenUE seeks to continue its existing fuel and purchased power cost recovery mechanism (FAC).
  • 6A specific tariff revision is requested for Noranda Aluminum, Inc., to ensure revenue recovery regardless of the customer's operational levels.
  • 7The MoPSC proceeding is expected to take up to 11 months, with a decision by June 2010.

Frequently Asked Questions

The primary driver for the requested $402 million revenue increase is approximately $227 million in anticipated increases in normalized net fuel costs, along with investments in system reliability, increased operational costs, and higher financing costs.

AmerenUE has requested interim rate relief of $37.3 million to be effective October 1, 2009. This amount is subject to refund based on the final outcome of the rate proceeding, meaning customers could see a temporary increase that may be adjusted later.

AmerenUE is requesting approval for an environmental cost recovery mechanism to adjust rates for prudently incurred environmental compliance costs outside of general rate proceedings. They also wish to continue their existing fuel and purchased power cost recovery mechanism (FAC).

AmerenUE is seeking to revise the tariff for Noranda Aluminum, Inc., to ensure that AmerenUE can recover authorized revenues regardless of Noranda's operational levels. If Noranda operates below assumed levels, it would receive a credit for any energy sales to the grid resulting from decreased consumption, ensuring costs are recovered without impacting other customers.