8-KOther Events

AMEREN CORP 8-K Report, Corporate Update (Nov 26, 2021)

Filed November 26, 2021For Securities:AEE

Summary

Ameren Corporation (AEE) and its subsidiary Ameren Missouri have reached a stipulation and agreement with the Missouri Public Service Commission (MoPSC) staff and other intervenors regarding Ameren Missouri's electric service rate review. This agreement, filed on November 24, 2021, proposes a $220 million annual increase in Ameren Missouri's revenue requirement for electric service, a significant step towards resolving the rate case initiated in March 2021. The proposed settlement is based on a $10.2 billion rate base and a common equity ratio of 51.97%. Key terms of the agreement include the continuation of mechanisms for fuel adjustment, pension and postretirement benefits, uncertain income tax positions, excess deferred income taxes, and renewable energy standard costs. Importantly, the agreement also provides for the recovery of $61 million in remaining non-labor operating costs and related returns associated with the Meramec Energy Center, which is slated for retirement in 2022, to be recovered over five years. The proposed effective date for the new rates is February 28, 2022, though the MoPSC's final approval is pending, and the outcome of any potential rehearing or appeal remains uncertain.

Key Highlights

  • 1Ameren Missouri has reached a stipulation and agreement for a $220 million annual increase in its electric service revenue requirement.
  • 2The proposed settlement is based on a $10.2 billion rate base and a 51.97% common equity ratio.
  • 3The agreement includes the continuation of key regulatory tracking mechanisms for fuel, pensions, taxes, and renewable energy costs.
  • 4A provision for the recovery of $61 million in costs related to the Meramec Energy Center retirement is included, spread over five years.
  • 5The proposed effective date for the new rates is February 28, 2022, subject to MoPSC approval.
  • 6The stipulation reflects a lower depreciation and amortization expense compared to Ameren Missouri's initial request.
  • 7The allowed return on equity (ROE) was not specified in the stipulation and agreement.

Frequently Asked Questions

The filing announces a stipulation and agreement proposing a $220 million annual increase in Ameren Missouri's electric service revenue requirement. This increase is subject to approval by the Missouri Public Service Commission (MoPSC).

The stipulation and agreement contemplates that new rates will become effective on February 28, 2022, contingent upon MoPSC approval.

The agreement allows Ameren Missouri to recover $61 million in remaining non-labor operating costs and related returns for the Meramec Energy Center over a five-year period, beginning when the new rates are effective. This facility is scheduled to be retired in 2022.

Yes, the stipulation and agreement includes the continuation of the fuel adjustment clause and regulatory tracking mechanisms for pension and postretirement benefits, uncertain income tax positions, excess deferred income taxes, and renewable energy standard costs, which were previously authorized by the MoPSC.