8-KOther Events

AMEREN CORP 8-K Report, Corporate Update (Apr 14, 2011)

Filed April 14, 2011For Securities:AEE

Summary

Ameren Corporation (AEE) and its subsidiary Union Electric Company (UE) filed an 8-K on April 14, 2011, to report on key developments in ongoing regulatory and judicial proceedings concerning their 2010 Missouri electric rate order. The primary event reported is the Circuit Court of Cole County's denial of a motion by the Missouri Industrial Energy Consumers (MIEC) and the Missouri Office of Public Counsel (MoOPC). This motion sought to extend a previously granted stay, which had allowed four industrial customers to pay the difference between new and old rates into a court registry, to all UE electric customers. The court ruled that the stay order was specific to the four industrial customers and did not mandate that UE cease charging the rates approved in the 2010 rate order to all customers. This decision reinforces the rates approved by the 2010 Missouri electric rate order for the broader customer base, pending further appeals. This ruling is significant as it effectively upholds the current rate structure for the majority of Ameren Missouri's customers, at least in the short term. It follows previous denials of similar requests by the Missouri Public Service Commission (MoPSC) and the Missouri Court of Appeals. While the company will continue to litigate the merits of the 2009 and 2010 rate orders, this court decision provides a measure of clarity and stability regarding current revenue streams from electric rates. Investors should monitor any further legal challenges and their potential impact on future earnings and cash flows.

Key Highlights

  • 1Circuit Court of Cole County denied a motion to extend a rate stay to all UE electric customers.
  • 2The court ruled the previous stay order applied only to four specific industrial customers.
  • 3UE will continue to charge rates approved by the 2010 Missouri electric rate order to all customers.
  • 4This decision upholds the current rate structure for the majority of Ameren Missouri's customer base.
  • 5The ruling follows similar denials by the Missouri Public Service Commission and the Missouri Court of Appeals.
  • 6Ameren and UE will continue to address the merits of the 2009 and 2010 rate orders through legal processes.

Frequently Asked Questions

The primary purpose of this 8-K filing was to inform investors about a court ruling that denied a motion to extend a stay on electric rates to all customers of Ameren Missouri (UE). This means the rates approved in the 2010 Missouri electric rate order will continue to apply to all customers, not just a select few industrial customers as requested by intervenors.

The Circuit Court's decision is significant because it upheld the current rates approved by the 2010 Missouri electric rate order for all UE customers. This provides a degree of certainty regarding current revenue collection, preventing a potential rollback of rates to a 2007 level for the general customer base.

Ameren Corporation and Union Electric Company will continue to defend the merits of the 2009 and 2010 Missouri electric rate orders through the ongoing judicial and regulatory review processes. While this specific motion was denied, further appeals or challenges related to the underlying rate orders are still possible.

No, this ruling does not immediately resolve all rate disputes. It specifically addresses a motion to extend a stay on rates. The underlying legal and regulatory proceedings concerning the merits of the 2009 and 2010 Missouri electric rate orders are ongoing, and further developments could still impact future rates.