JEFFERSON CITY—Ameren Missouri electric customers should see a decrease in the fuel adjustment charge (FAC) on their electric bill after the Missouri Public Service Commission approved a lower tariff that takes effect on January 27, 2014.
The new tariff will mean a reduction of about $1.13 a month -- from $4.10 to $2.97 a month -- for the average residential customer. In its filing, Ameren Missouri stated the proposed adjustment to customer rates 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 June 2013 through September 2013 (Case No. ER-2014-0163). The filing also reflected the company’s annual FAC true-up (Case No. ER-2014-0164) and a customer refund ordered by the Commission in a July 2013 decision (Case No. EO-2012-0074). In its annual FAC true-up filing, Ameren Missouri stated the true-up reflected an undercollection of approximately $105,339 from customers.
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. Fuel adjustment charges are intended to help companies deal with volatility in fuel pricing. Any charges resulting from the fuel adjustment clause must appear in a separate category on customers’ bills.
Ameren Missouri provides electric service to approximately 1.2 million customers in Missouri.