Ameren Missouri officials say they appreciate the time and effort the Missouri Public Service Commission took to review the issues in the electric rate increase case. The decision is under review, according to Ameren Missouri.
Upon completion of the review of the Commission's order, Ameren officials said they will determine whether to seek rehearing or appeal to the courts.
According to a statement issued by Ameren, based on their "preliminary review of the order, the commission granted a $260 million electric rate increase. Key drivers of the increase are higher fuel costs for our power plants, increased investments in our energy infrastructure and costs for our new energy efficiency programs. For the average residential customer, the increase will be approximately 34 cents per day."
The increase will be effective Jan. 2, 2013.
The increase will have an impact on more than 30,000 residential and business customers in Morgan, Miller and Camden counties. Ameren provides service to Versailles, Eldon, Lake Ozark, Osage Beach and Linn Creek.
The commission approved a change to the current regulatory framework to support the implementation of Ameren's investment of nearly $150 million in new energy efficiency programs over three years. This portfolio of energy efficiency programs, the largest in the history of the state of Missouri, will help our customers manage their energy usage and will result in more than $500 million in customer benefits over the next 20 years.
The Commission retained Ameren was given the ability to reflect 95% of changes in fuel costs in a timely manner and approved a new storm cost mechanism that will more accurately reflect costs associated with restoration efforts for major storms.
The Commission lowered Ameren's current return on equity of 10.2% down to 9.8%, which is below the current national average for electric utilities.