Summary
On September 3, 2010, Union Electric Company (AmerenUE), a subsidiary of Ameren Corporation, filed a significant request with the Missouri Public Service Commission (MoPSC) seeking an approximate $263 million annual increase in electric service revenues. This filing is driven by substantial investments in energy infrastructure, environmental control systems (including approximately $110 million for scrubbers at its Sioux plant), and ongoing efforts to enhance system reliability. The proposed rate increase is based on a projected rate base of $6.8 billion and a requested return on equity of 10.9%.
Key Highlights
- 1AmerenUE filed a request for a $263 million annual electric revenue increase with the MoPSC.
- 2The requested increase is primarily to recover costs for infrastructure investments and environmental controls (e.g., $110 million for Sioux plant scrubbers).
- 3The filing also includes a $70 million anticipated increase in normalized net fuel costs.
- 4AmerenUE is seeking approval for an infrastructure investment tracking mechanism to defer certain costs and depreciation.
- 5The company also requested enhanced cost recovery for energy efficiency programs, allowing three-year recovery instead of six.
- 6The MoPSC proceeding is expected to take up to 11 months, with a decision due by August 2011.
- 7AmerenUE acknowledges uncertainty regarding the final approved rate increase and its sufficiency to cover costs and earn a reasonable return.
Frequently Asked Questions
The primary reasons for the requested rate increase are to recover costs associated with significant investments in energy infrastructure, the installation of environmental control systems (like scrubbers at the Sioux plant), and efforts to improve system reliability for customers.
The proposed increase includes approximately $110 million for the cost of installing scrubbers at the Sioux plant, an estimated $70 million increase in normalized net fuel costs, and recovery for other infrastructure investments and system reliability improvements.
The Missouri Public Service Commission (MoPSC) proceeding is expected to last up to 11 months, with a decision required by August 2011.
Yes, AmerenUE has requested the implementation of an infrastructure investment tracking mechanism to allow for the deferral of certain costs and depreciation beyond their in-service dates, which would be recoverable in future rate proceedings. They also seek enhanced cost recovery for energy efficiency programs.