PR-09-136 -- PSC Grants Electric Rate Increase To AmerenUE

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- JANUARY 27, 2009

JEFFERSON CITY—The Missouri Public Service Commission voted today to grant an electric rate increase of approximately $162.6 million to AmerenUE.  The rate increase reflects the company’s increased costs of providing electric service to its customers.  The commission’s vote was 3 to 2.  Chairman Robert M. Clayton III and Commissioner Kevin Gunn issued a separate dissenting opinion.

As part of its decision, the commission authorized AmerenUE a return on equity of 10.76 percent; it granted a fuel adjustment clause with a 95 percent pass through of fuel expenses; and it included in rates costs associated with PSC rules on vegetation management, infrastructure inspections and service reliability.

The commission rejected AmerenUE’s request to include certain Callaway II construction and operating license application costs in electric rates.  Because AmerenUE accounted for the costs associated with its preparation and filing of the Callaway II COLA (Construction and Operating License Application) as CWIP (Construction Work In Progress) the commission did not include these costs in AmerenUE’s rate base.

Based on the commission’s decision, the PSC staff estimates the average monthly bill for a residential customer will increase by approximately $5.88 (8.1 percent).   

Regarding the fuel adjustment clause, the commission determined AmerenUE met the statutory standard to implement a fuel adjustment clause (FAC) to address fuel and purchased power volatility.  Electric rates established in this rate case reflect a base level of fuel and purchased power costs.  The fuel adjustment clause will reflect increases or decreases in those costs above or below the base level.  The FAC will be separately identified on customer bills. 

When AmerenUE filed its rate request on April 4, 2008, it sought to increase annual electric operating revenues by approximately $251 million.  The company stated the increase would allow the company to continue its system wide reliability improvements and to cover increasing costs for fuel, transportation and materials needed to generate and produce electricity.

AmerenUE serves approximately 1.2 million electric customers in Missouri.

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Case No. ER-2008-0318