Summary
On February 3, 2012, Ameren Corporation's subsidiary, Union Electric Company (Ameren Missouri), filed a significant request with the Missouri Public Service Commission (MoPSC) seeking an annual revenue increase of approximately $376 million for electric service. This request is primarily driven by substantial infrastructure investments aimed at enhancing reliability and complying with environmental regulations, along with recovery of costs associated with energy efficiency programs mandated by the Missouri Energy Efficiency Investment Act (MEEIA). A notable portion of the request is also attributed to increased fuel costs above previously authorized rates. Beyond the core revenue increase, Ameren Missouri is also seeking approval for a storm cost tracking mechanism and plant-in-service accounting. These mechanisms aim to provide more timely recovery of storm-related expenses and deferred costs for assets placed in service but not yet reflected in rates, respectively. The MoPSC proceeding is expected to conclude with a decision in December 2012, though the outcome and the final approved rate increase remain uncertain.
Key Highlights
- 1Ameren Missouri filed a request for a $376 million annual revenue increase for electric service with the MoPSC.
- 2The revenue increase is driven by infrastructure investments, environmental compliance costs, and energy efficiency program costs.
- 3A significant portion of the request ($103 million) is for increased net fuel costs above authorized base rates.
- 4Ameren Missouri is seeking approval for a storm cost tracking mechanism to recover major storm restoration expenses.
- 5The company also requested plant-in-service accounting to recover return and defer depreciation on new assets.
- 6The MoPSC is expected to issue a decision on the rate increase request by December 2012.
- 7The filing indicates a requested return on equity of 10.75% and an electric rate base of $6.8 billion.