FOR IMMEDIATE RELEASE -- September 04, 2012
Contact: Kevin Kelly (573) 751-9300
Ameren Missouri Customers Should See Lower FAC Rates As Public Service Commission Approves New Fuel Adjustment Tariff
JEFFERSON CITY---Ameren Missouri customers should see a slight decrease in the fuel adjustment charge on their electric bill after the Missouri Public Service Commission adopted a lower tariff that takes effect Sept. 24.
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.
“In a time of increasing costs for consumers, any decrease in price – even a modest one – should be welcomed by consumers,” PSC Chairman Kevin Gunn said. “We’re pleased to adopt a tariff that will bring a lower fuel adjustment charge for these ratepayers.”
The new tariff will mean a reduction of about $0.21 a month -- from $3.17 to $2.96 a month -- for the average residential customer who uses 1,100 kWh of electricity a month. The adjustment reflects Ameren Missouri’s fuel and purchased power costs to serve customers in its service territory during the four month period of February to May.
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 purchased power costs to serve customers in its service areas. Any off-system sales outside of that service territory must be refunded back to consumers.
“These fuel prices are adjusted regularly to reflect actual price changes,” Gunn said. In this case, the good news is a decline in fuel prices for the company and a lower FAC on customers’ bills.
Ameren Missouri provides electric service to approximately 1.2 million customers in Missouri.