FOR IMMEDIATE RELEASE -- January 03, 2019
Contact: Kevin Kelly (573) 751-9300
PSC Approves Changes to Ameren Missouri FAC and EEIC Charges
JEFFERSON CITY---The Missouri Public Service Commission has approved filings from Union Electric Company d/b/a Ameren Missouri which will adjust the fuel and purchased power adjustment charge (FAC) as well as the Energy Efficiency Investment Charge (EEIC) that appear as separate line items on the monthly bills of Ameren Missouri electric customers.
Under the filings approved by the Public Service Commission, a typical residential customer will see the FAC drop by approximately $2.15 a month (from $1.96 a month to a refund of $0.19 a month) and the EEIC drop by approximately $3.33 a month (from $3.74 a month to $0.41 a month). The two reductions total approximately $5.48 a month and will take effect on January 25, 2019.
FAC: Ameren Missouri made two filings with the Commission. In its first filing (Case No. ER-2019-0152), Ameren Missouri proposed to adjust the FAC to reflect changes in its fuel and purchased power costs, net off-system sales revenues and associated transportation experienced during the four month period of June through September 2018. The second filing was Ameren Missouri’s FAC true-up (Case No. ER-2019-0153).
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 purchased 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.
EEIC: The EEIC adjustment reflects costs of approved energy efficiency programs under the Missouri Energy Efficiency Investment Act (MEEIA). The EEIC is a charge which encourages utility companies to implement demand-side and energy efficiency programs and was part of the MEEIA.
Ameren Missouri provides electric service to approximately 1.26 million electric customers in Missouri.