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The Lake News Online
  • PSC determines Ameren Missouri electric customers should receive $26.3 million refund

  • The Missouri Public Service Commission has determined that certain Ameren Missouri power sales agreements with American Electric Power Operating Companies (AEP) and to Wabash Valley Power Association, Inc. (Wabash) should be considered as off-system sales and, therefore, those revenues should be flowed through the company's F...
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  • The Missouri Public Service Commission has determined that certain Ameren Missouri power sales agreements with American Electric Power Operating Companies (AEP) and to Wabash Valley Power Association, Inc. (Wabash) should be considered as off-system sales and, therefore, those revenues should be flowed through the company's Fuel Adjustment Clause (FAC). As a result, the Commission has determined electric customers of Ameren Missouri should receive a $26.3 million refund to be applied in a future Ameren Missouri FAC filing. The Commission's vote was 3 to 1.
    The Commission determined, based upon the evidence in the case, that Ameren Missouri should not have excluded revenues derived from the power sales agreements with AEP and Wabash from off-system sales revenue when calculating the rates charged under its fuel adjustment clause.
    Ameren Missouri had contended that the power sales to AEP and Wabash did not fall under the definition of off-system sales under the FAC. Ameren Missouri further contended that these contracts were intended to replace the loss of power sales to its largest customer, Noranda Aluminum, due to the terrible ice storm that struck southeast Missouri on Jan. 27, 2009, disrupting Noranda's operations for an extended period of time.
    This case was the second prudence review of costs subject to Ameren Missouri's fuel and purchased power adjustment clause. Such a review is required to take place at least every 18 months. In this case, the PSC staff reviewed for prudence, the costs and revenues associated with Ameren Missouri's FAC for the period of Oct. 1, 2009-May 31, 2011.
    Based upon its review, the PSC staff had alleged that Ameren Missouri was imprudent for not including all costs and revenues associated with certain sales to AEP and Wabash in determining the associated FAC charges that are billed to its customers. The PSC Staff took the same position in its first prudence review which covered the period of March 1-Sept. 30, 2009. In that case, the Commission determined Ameren Missouri should refund approximately $17.1 million to customers.
    Ameren Missouri provides electric service to approximately 1.2 million customers in Missouri.
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