Reference is made to Note 2 – Rate and Regulatory Matters to the financial statements under Part I, Item 1. Financial Statements and to Overview and Outlook under Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, each in the Quarterly Report on Form
10-Q
for the quarterly period ended September 30, 2021 (“Form
10-Q”),
of registrants Ameren Corporation and Union Electric Company, doing business as Ameren Missouri (“Ameren Missouri”), for a discussion of Ameren Missouri’s electric service rate review filed with the Missouri Public Service Commission (“MoPSC”) in March 2021.
On November 24, 2021, Ameren Missouri, the staff of the MoPSC, the Missouri Office of Public Counsel, and certain other intervenors filed a stipulation and agreement with the MoPSC. The stipulation and agreement, which is subject to MoPSC approval, would result in a $220 million increase in Ameren Missouri’s annual revenue requirement for electric service compared to its prior revenue requirement established in the MoPSC’s March 2020 electric rate order. The stipulation and agreement is based on a $10.2 billion rate base and a common equity ratio of 51.97%; an allowed return on equity (“ROE”) was not specified. The stipulation and agreement reflects the MoPSC staff’s recommendation of lower depreciation, primarily on distribution investments, and amortization expense of approximately $45 million, as compared to Ameren Missouri’s request.
The stipulation and agreement includes the continued use of the fuel adjustment clause and the regulatory tracking mechanisms for pension and postretirement benefits, uncertain income tax positions, certain excess deferred income taxes, and renewable energy standard costs that the MoPSC previously authorized in earlier electric rate orders. These regulatory tracking mechanisms provide for a base level of expense to be reflected in Ameren Missouri’s base electric rates with differences in the actual expenses incurred recorded as a regulatory asset or liability. The stipulation and agreement also includes the recovery, over a five-year period beginning with the effectiveness of new rates, of $61 million of remaining
non-labor
operating costs, including undepreciated plant
in-service,
and related return associated with the Meramec Energy Center, which is scheduled to be retired in 2022.
The stipulation and agreement contemplates that new rates will become effective on February 28, 2022. Ameren Missouri cannot predict whether the MoPSC will approve the stipulation and agreement or, if approved, whether any application for rehearing or appeal will be filed or the outcome if so filed.
This combined Form
8-K
is being filed separately by Ameren Corporation and Union Electric Company. Information contained herein relating to any individual registrant has been filed by such registrant on its own behalf. No registrant makes any representation as to information relating to any other registrant.
