8-KOther Events

AMEREN CORP 8-K Report, Corporate Update (Jul 3, 2014)

Filed July 3, 2014For Securities:AEE

Summary

Ameren Corporation, through its subsidiary Ameren Missouri, has officially filed a request with the Missouri Public Service Commission (MoPSC) to increase its annual electric service revenues by $264 million. This rate case aims to recover significant investments in electric infrastructure totaling $1.4 billion, alongside increased net energy costs and rebates for customer-installed solar generation. Key investments include upgrades to environmental controls at the Labadie energy center, a new reactor vessel head for the Callaway energy center, new substations in St. Louis, and the O'Fallon solar facility. The proposed rate increase is based on a 10.4% return on equity, a capital structure of 51.6% equity, and a rate base of $7.3 billion. Ameren Missouri is also seeking to continue utilizing existing regulatory mechanisms for fuel and purchased power costs (FAC), storm costs, vegetation management, pension benefits, and tax positions. The MoPSC is expected to make a decision on this rate case by May 2015, with potential rate adjustments effective in June 2015.

Key Highlights

  • 1Ameren Missouri filed a request on July 3, 2014, to increase annual electric service revenues by $264 million.
  • 2The rate increase seeks to recover $1.4 billion in electric infrastructure investments and increased net energy costs.
  • 3Significant infrastructure investments include environmental upgrades at Labadie, nuclear reactor replacement at Callaway, new substations, and a new solar facility.
  • 4The filing proposes a 10.4% return on equity and a rate base of $7.3 billion, using a test year ending March 31, 2014.
  • 5Ameren Missouri is requesting continued use of the Fuel and Purchased Power Cost Adjustment (FAC) mechanism and other regulatory tracking mechanisms.
  • 6A decision from the Missouri Public Service Commission (MoPSC) is anticipated by May 2015, with potential rate changes effective June 2015.

Frequently Asked Questions

Ameren Missouri is requesting a rate increase primarily to recover substantial investments made in electric infrastructure totaling $1.4 billion, increased net energy costs, and rebates provided to customers for installing solar generation. These investments are aimed at improving reliability, meeting environmental regulations, and enhancing service for customers.

The Missouri Public Service Commission (MoPSC) proceeding is expected to take up to 11 months. A decision is anticipated by May 2015, with any approved rate changes potentially becoming effective in June 2015.

Ameren Missouri is seeking approval to increase its annual revenues for electric service by $264 million.

The FAC mechanism allows Ameren Missouri to adjust customer rates to reflect 95% of changes in net energy costs (fuel and purchased power) without a traditional rate proceeding, subject to regulatory prudence reviews. Ameren Missouri is requesting its continued use to efficiently manage and recover fluctuations in energy costs.