8-KOther Events

AMEREN CORP 8-K Report, Corporate Update (Apr 7, 2023)

Filed April 7, 2023For Securities:AEE

Summary

Ameren Corporation (AEE) and its subsidiary Union Electric Company (Ameren Missouri) have filed an 8-K detailing a significant development in their electric service regulatory rate review in Missouri. On April 7, 2023, Ameren Missouri, alongside the Missouri Public Service Commission (MoPSC) staff and other intervenors, submitted a non-unanimous stipulation and agreement. This agreement, if approved by the MoPSC, proposes a $140 million increase in Ameren Missouri's annual revenue requirement for electric service, representing a key update from the previous December 2021 rate order. The proposed new rates are anticipated to take effect on July 1, 2023. The stipulation also includes the continuation of established regulatory tracking mechanisms for various costs, such as fuel, pension and postretirement benefits, uncertain income tax positions, excess deferred income taxes, and renewable energy standard costs. These mechanisms allow for adjustments to rates based on actual expenses, creating regulatory assets or liabilities. While the agreement outlines the revenue increase, it does not specify the allowed return on equity, common equity ratio, rate base amount, or any rate base disallowances. Investors will be closely watching for MoPSC approval and any subsequent regulatory actions.

Key Highlights

  • 1Ameren Missouri filed a stipulation and agreement on April 7, 2023, proposing a $140 million increase in annual electric service revenue requirement.
  • 2The proposed rate increase is subject to approval by the Missouri Public Service Commission (MoPSC).
  • 3New rates are expected to become effective on July 1, 2023, pending regulatory approval.
  • 4The agreement includes the continued use of established regulatory tracking mechanisms for fuel, pension/postretirement benefits, income taxes, and renewable energy costs.
  • 5Key financial metrics like allowed return on equity and common equity ratio were not specified in the stipulation.
  • 6The MoPSC's approval of the stipulation and any potential subsequent appeals or rehearings are currently unpredictable.
  • 7This filing provides an update to the electric service regulatory rate review initiated in August 2022.

Frequently Asked Questions

This 8-K filing reports on a significant development in Ameren Missouri's electric service regulatory rate review. Specifically, it announces that Ameren Missouri, along with other parties, has filed a stipulation and agreement with the Missouri Public Service Commission (MoPSC) that proposes a $140 million increase in annual revenue requirements.

If approved by the MoPSC, the new rates reflecting the stipulation and agreement are expected to become effective on July 1, 2023.

These are authorized mechanisms by the MoPSC that allow Ameren Missouri to adjust base electric rates based on actual incurred expenses for specific items like fuel, pension and postretirement benefits, uncertain income tax positions, certain excess deferred income taxes, and renewable energy standard costs. Differences between actual expenses and the base rate allowances are recorded as regulatory assets or liabilities.

No, the stipulation and agreement filed with the MoPSC did not specify an allowed return on equity or common equity ratio, nor did it specify a rate base amount or any rate base disallowances.