8-KOther Events

AMEREN CORP 8-K Report, Corporate Update (Jan 13, 2012)

Filed January 13, 2012For Securities:AEE

Summary

Ameren Corporation (AEE) filed an 8-K on January 13, 2012, reporting an event from January 10, 2012. The key information for investors pertains to a rate order issued by the Illinois Commerce Commission (ICC) concerning Ameren Illinois Company, a subsidiary. The ICC approved an increase in Ameren Illinois' annual revenues for natural gas delivery services amounting to $32 million. This rate increase, based on a 9.06% return on equity and a rate base of approximately $1 billion, is set to become effective around January 20, 2012. While this represents a positive development for revenue generation, investors should note that Ameren Illinois is still evaluating the ICC's order and reserves the right to seek rehearing or appeal certain aspects. Similarly, intervenor parties may also pursue appeals, introducing a degree of uncertainty regarding the final outcome.

Key Highlights

  • 1Illinois Commerce Commission (ICC) approved a $32 million annual revenue increase for Ameren Illinois' natural gas delivery services.
  • 2The approved revenue increase is based on a 9.06% return on equity and a rate base of approximately $1 billion.
  • 3The rate changes are expected to take effect around January 20, 2012.
  • 4Ameren Illinois is currently evaluating the ICC's rate order.
  • 5The company may seek rehearing or appeal aspects of the ICC's decision.
  • 6Intervenor parties in the rate case also have the option to seek rehearing or appeal the order.
  • 7The potential for rehearings or appeals introduces uncertainty regarding the final revenue figures.

Frequently Asked Questions

The main event is the Illinois Commerce Commission (ICC) issuing a rate order approving a $32 million increase in annual revenues for Ameren Illinois' natural gas delivery services.

The approved revenue increase is expected to enhance Ameren Illinois' financial performance by allowing it to collect an additional $32 million annually for its natural gas delivery services, based on specific rate base and return on equity parameters.

No, the increase is not entirely guaranteed. Ameren Illinois is still evaluating the ICC's order and has the option to seek rehearing or appeal parts of it. Additionally, other parties involved in the rate case may also appeal the decision, which could alter the final outcome.

The ICC approved a 9.06% return on equity, a capital structure with 53.3% common equity, a rate base of approximately $1 billion, and utilized a 2012 future test year for its calculations.