STATE OF MISSOURI

PUBLIC SERVICE COMMISSION

 

At a session of the Public Service Commission held at its office in Jefferson City on the 9th day of January, 2013.

 

 

In the Matter of the Adjustment of Union Electric Company†† )File No. ††ER-2013-0310

d/b/a Ameren Missouri's Fuel Adjustment Clause for the†††††† )Tariff No. YE-2013-0240

11th Accumulation Period††††††††††††††††††††††††††††††††††††††††††††††††††† )

 

ORDER REGARDING FUEL ADJUSTMENT CLAUSE TARIFF

 

Issue Date: January 9, 2013†††††††††††††††††††††††††† ††† ††††† ††††††Effective Date: January 25, 2013

Syllabus

††††††††† This order approves Ameren Missouriís tariff to implement a FAC rate adjustment.

Background

On November 26, 2012, Union Electric Company, d/b/a Ameren Missouri (ďAmeren MissouriĒ), submitted an application and tariff designed to implement an adjustment to its current Fuel and Purchased Power Adjustment (FPAc) per kWh rate of its Fuel Adjustment Clause (FAC) to $0.00440 per kWh (without voltage level adjustment).The tariff bears an effective date of January 25, 2013.

††††††††† Along with its tariff filing, Ameren Missouri filed the testimony of Eric C. Wenberg, Ameren Missouriís Manager of Wholesale Power and Fuel Accounting.Mr. Wenberg testified that the purpose of the tariff is ďto adjust customer rates for changes in Ameren Missouriís fuel and purchased power costs net of off-system sales revenues (i.e., net fuel costs), which were experienced during the four-month period June 2012 through September 2012.Ē[1]

Mr. Wenberg further explained:

Ameren Missouriís net fuel costs during the June 1, 2012 to September 30, 2012, Accumulation Period have increased as compared to the NBFC [net base fuel costs] applicable to that period. The factors driving this cost increase were lower off-system sales margins, and higher base load fuel costs. Specifically, for the subject Accumulation Period Ameren Missouriís net fuel costs are more than the NBFC for that period by approximately $86,493,018.[2] In accordance with the Commissionís rule and Ameren Missouriís approved Rider FAC, Ameren Missouri is making this filing to set its FPAc rate so that customers will pay 95% of this cost increase. Also included in this FPAc rate is an amount reflected in the Companyís eighth true-up filing, which is being filed concurrently with the initiation of this docket (which increases net fuel costs by $1,327,563). The new FPAc rate will appear as a separate line item on the customersí bills starting with the February, 2013 billing month, when the Recovery Period applicable to the subject Accumulation Period begins.

 

The fuel costs, and the related kilowatt-hours generated, from the Maryland Heights Energy Center (ďMHECĒ), starting June 15, 2012, when it began providing service, have been included in Ameren Missouriís calculations.[3]The Recovery Period applicable to this filing will consist of the billing months of February 2013 through September 2013. The total increase, using estimated kWh sales for the February 2013 to September 2013 Recovery Period, as also provided for in Rider FAC, results in the following FPAc rates for the Companyís customers during that Recovery Period, beginning with the billing month of February 2013:

 

Service

Proposed Recovery Period (ďRPĒ)

RP 11

FPAc

 

Current RP10

FPAc

 

Difference

Secondary

$0.00465/kWh

$0.00269/kWh

$0.00196/kWh

Primary

$0.00450/kWh

$0.00261/kWh

$0.00189/kWh

Large Transmission

$0.00436/kWh

$0.00253/kWh

$0.00183/kWh

 

Based on a monthly usage of 1,100 kWh, the proposed change to the Secondary FPAC per kWh rate will increase the Fuel Adjustment Charge of an Ameren Missouri residential customerís bill from $2.96 to $5.12, an increase of $2.16 per month.

Staffís Recommendation

On December 26, 2012, the Commissionís Staff filed its recommendation regarding Ameren Missouriís FAC tariff. Staff reviewed Ameren Missouri proposed tariff sheet, the direct testimony of Ameren Missouri witness Erik C. Wenberg and associated Ameren Missouri work papers, as well as, Ameren Missouriís monthly information submitted in compliance with 4 CSR 240-3.161(5).Staff verified that the actual fuel and purchased power costs match the fuel and purchased power costs in Ameren Missouriís proposed tariff.Staff reviewed Ameren Missouriís monthly reports and verified that the kWh billed shown on the monthly reports match the accumulation period sales used to calculate the FPA rates. Staff also reviewed Ameren Missouriís monthly interest rates that are applied to 95% of the over/under Base Energy Cost amount and verified that the interest rates and calculations of interest amounts are correct for Accumulation Period 11.

Additionally, Staff acknowledge that the Commission approved Ameren Missouriís request for a waiver from Commission Rule 4 CSR 240-20.100(6)(A)16, regarding passing the fuel costs from MHEC through the FAC.Staff states it will continue to work with the Company to reach a resolution concerning the treatment of the costs of landfill gas purchased for the Companyís Maryland Heights generating units.

Staff has verified that Ameren Missouri is not delinquent on any assessment and has filed its 2011 Annual Report. Ameren Missouri is current on its submission of its Surveillance Monitoring reports as required in 4 CSR 240-20.090(10) and its monthly reports as required by 4 CSR 240-3.161(5). Staff is not aware of any other matter before the Commission that affects or is affected by this filing, except as noted herein.Consequently, Staff recommends the Commission issue an order approving the proposed tariff sheet, as filed on November 26, 2012, to become effective on January 25, 2013, as requested by Ameren Missouri.

Analysis and Decision

††††††††† The Commissionís rule regarding FACs requires the Commission to issue an order approving or rejecting the companyís tariff within 60 days of its filing.[4]And, if the FAC rate adjustment complies with the Commissionís rule, Section 386.266, RSMo Supp. 2011, and the FAC mechanism established in the most recent general rate proceeding, the Commission is required to approve the rate adjustment or allow the proposed tariff implementing the adjustment go into effect by operation of law.[5]

††††††††† The Commission has reviewed Ameren Missouriís tariff filings, and Staff's verified recommendation and memorandum, and finds that the tariff sheet implementing the FAC rate adjustment is in compliance with the Commissionís order establishing the FAC and with all applicable statutes and regulations.As such, 4 CSR 240-20.090(4) requires the Commission to approve Ameren Missouriís tariff or allow it to go into effect by operation of law.††††††

THE COMMISSION ORDERS THAT:

1.     Union Electric Company, d/b/a Ameren Missouriís revised tariff filing, assigned Tariff No. YE-2013-0240 is approved to be effective January 25, 2013, as an interim rate adjustment, subject to true‑up and prudence reviews.The tariff approved is:

MO. P.S.C.No. 5
4th Revised Sheet No. 98.21, Canceling 3rd Revised Sheet No. 98.21

 

2.     This order shall become effective on January 25, 2013.

3.     This file shall be closed on January 26, 2013.

BY THE COMMISSION

 

 

( S E A L )

 

Shelley Brueggemann

Acting Secretary

 

 

Gunn, Chm., Jarrett, Kenney, and

Stoll, CC., concur.

 

Stearley, Deputy Chief Regulatory Law Judge



[1] This four-month period is the eleventh overall Accumulation Period under Ameren Missouriís Rider FAC, which was first approved by the Commission in File No. ER-2008-0318, and which has subsequently been re-authorized, with certain modifications, in File Nos. ER-2010-0036 and ER-2011-0028.

[2] This figure includes $1.9 million (plus interest) of the refund Ameren Missouri received from Entergy as a result of FERC Opinion No. 505-A in Docket No. ER07-956-002, as agreed upon in the Nonunanimous Stipulation and Agreement as to Certain Revenue Requirement. These amounts were included in the Purchased Power for OSS line shown on the Actual Fuel Costs worksheet included in Schedule EW-FPA attached to this testimony.

[3] The Commission granted Ameren Missouri a waiver from Commission Rule 4 CSR 240-20.100(6)(A)16 in its Report and Order in File Number ER-2012-0166 that allows the company to pass the costs of the landfill gas, purchased from the owner of a landfill, to operate the MHEC through the FAC even though some of those costs may be categorized as Renewable Energy Standard compliance costs.See EFIS Docket Entry 553, Report and Order, issued December 12, 2012 in File Number ER-2012-0166, In the Matter of Union Electric Company d/b/a Ameren Missouri's Tariffs to Increase Its Revenues for Electric Service, pp.118-119.EFIS is the Commissionís Electronic Information and Filing System.†††

[4] Commission Rule CSR 240-20.090(4).

[5] Id.