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PSC approves Ameren Missouri filing for adjustment in fuel charge

Posted on Monday, May 26, 2014 at 11:07 am

The Missouri Public Service Commission (PSC) has approved a filing made by Union Electric Company d/b/a Ameren Missouri to adjust the fuel and purchased power adjustment charge (FAC) on the bills of its electric customers.

Ameren Missouri stated the proposed adjustment to customer rates primarily reflected changes in its fuel and purchased power costs, including transportation and net of off-system sales revenues experienced during the four month period of October 2013 through January 2014. It also reflected an FAC true-up filing for the period of June 2013 through January 2014.

A residential customer using 1,100 kWh (kilowatt-hours) per month will see the FAC charge increase by approximately $0.66 a month, from $2.97 to $3.63. The change will take effect on May 27, 2014.

The fuel adjustment charge was authorized by the Commission for Ameren Missouri in a regular rate case in 2009. The FAC tariff allows the company to pass increases or decreases in its net fuel and purchase power costs to customers outside of a general rate case.

The FAC allows the company to recover most – up to 95 percent – of its costs, but not all, to encourage conservation and prudence in fuel use by the company. Any charges resulting from the fuel adjustment clause must appear in a separate category on customers’ bills.

Fuel adjustment charges are intended to help companies deal with volatility in fuel pricing. The FAC tariff requires regular adjustments to reflect changes in prices the company has incurred for fuel and for wholesale power purchased to serve customers.

Ameren Missouri provides electric service to approximately 1.2 million electric customers in Missouri.