8-KOther Events

AMEREN CORP 8-K Report, Corporate Update (Mar 16, 2011)

Filed March 16, 2011For Securities:AEE

Summary

This 8-K filing from Ameren Corporation and its subsidiary Union Electric Company (Ameren Missouri) on March 16, 2011, addresses a key regulatory development. The Missouri Public Service Commission (MoPSC) denied a request by the Missouri Office of Public Counsel (MoOPC) to suspend the currently effective electric rate schedules approved in the 2010 rate order and reinstate the previously effective 2009 rate schedules. This decision effectively also denied a similar request from the Missouri Industrial Energy Consumers. For investors, this news is significant as it means the current electric rate schedules, including the fuel adjustment clause, remain in effect. This provides a degree of regulatory certainty regarding Ameren Missouri's revenue streams and operational costs, as opposed to a potential rollback to older, likely less favorable (from a revenue perspective) rate structures. The report refers back to the company's 2010 10-K for further details on the ongoing judicial review and regulatory proceedings related to these rate orders.

Key Highlights

  • 1Missouri PSC denied request to suspend current electric rate schedules (2010 order).
  • 2Current electric rate schedules, including the fuel adjustment clause, remain in effect.
  • 3The denial effectively rejects a proposal to revert to the 2009 electric rate schedules.
  • 4Missouri Industrial Energy Consumers' similar request to revert to the 2007 electric rate order was also effectively denied.
  • 5This decision provides regulatory stability concerning Ameren Missouri's revenue.
  • 6The filing is a follow-up to ongoing judicial review and regulatory proceedings concerning the 2010 and 2009 Missouri electric rate orders.

Frequently Asked Questions

The main news is that the Missouri Public Service Commission (MoPSC) denied a request to suspend Ameren Missouri's current electric rate schedules (approved in the 2010 rate order) and reinstate older schedules. This means the current rates, including the fuel adjustment clause, remain in place.

The fuel adjustment clause allows Ameren Missouri to adjust its rates based on the cost of fuel used to generate electricity. By keeping the current rate schedules in effect, the fuel adjustment clause continues to operate as approved, providing the company with the ability to recover fuel costs.

No, this filing addresses a specific request to suspend current rates. The 8-K filing refers to ongoing judicial review and regulatory proceedings regarding the 2010 and 2009 Missouri electric rate orders, indicating that other aspects of rate regulation are still under consideration.

The primary parties involved in the request that was denied were the Missouri Office of Public Counsel (MoOPC) and the Missouri Industrial Energy Consumers. They sought to suspend the current rates and reinstate older rate schedules.