8-KOther Events

AMEREN CORP 8-K Report, Corporate Update (Jan 23, 2015)

Filed January 23, 2015For Securities:AEE

Summary

Ameren Corporation, through its subsidiary Ameren Illinois Company (AIC), has filed a request with the Illinois Commerce Commission (ICC) to increase annual natural gas delivery service rates by $53 million. This filing, dated January 23, 2015, outlines AIC's proposed rate hike based on a requested 10.25% return on equity, a 50% equity capital structure, and a $1.2 billion rate base, with a test year ending December 31, 2016. Investors should note that the ICC process is expected to take up to 11 months, with a decision due by December 2015 and new rates potentially effective in January 2016. Ameren Illinois cannot guarantee the outcome of this regulatory process, including the final approved rate amount or its sufficiency to cover costs and achieve a reasonable return on investment. This event is significant as it directly impacts the future revenue and profitability of AIC's natural gas operations.

Key Highlights

  • 1Ameren Illinois Company (AIC) is seeking a $53 million annual increase in natural gas delivery service rates.
  • 2The request was filed with the Illinois Commerce Commission (ICC) on January 23, 2015.
  • 3AIC is proposing a 10.25% return on equity and a rate base of $1.2 billion.
  • 4The proposed rate change is based on a test year ending December 31, 2016.
  • 5The ICC is expected to make a decision by December 2015, with new rates potentially effective in January 2016.
  • 6The final approved rate increase is uncertain and subject to ICC determination.
  • 7The outcome of this rate case could impact AIC's financial performance and Ameren Corporation's overall profitability.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report that Ameren Illinois Company (AIC), a subsidiary of Ameren Corporation, has filed a request with the Illinois Commerce Commission (ICC) to increase its natural gas delivery service rates by $53 million annually.

The ICC proceedings are expected to last up to 11 months, with a decision anticipated by December 2015. If approved, the new rates could become effective in January 2016.

AIC is basing its request on a proposed 10.25 percent return on equity, a capital structure of 50% equity, and a rate base of $1.2 billion. The proposed rates are designed for a test year ending December 31, 2016.

No, the $53 million is the amount AIC is seeking. The ICC will review the request and can approve, deny, or modify the proposed increase. Ameren Illinois cannot predict the final outcome or if the approved rates will be sufficient to cover costs and earn a reasonable return.