Ameren Corporation
07/01/2024 | Press release | Distributed by Public on 07/01/2024 04:56
Material Event Form 8 K
ITEM 8.01 Other Events.
On June 28, 2024, Union Electric Company, doing business as Ameren Missouri ("Ameren Missouri"), filed a request with the Missouri Public Service Commission ("MoPSC") seeking approval to increase its annual revenues for electric service by $446 million. The electric rate increase request is based on a 10.25% return on common equity, a capital structure composed of 52% common equity, a rate base of $14 billion, and a test year ended March 31, 2024, with certain pro-forma adjustments expected through an anticipated true-up date of December 31, 2024. Ameren Missouri also requested the continued use of the fuel adjustment clause and trackers for pension and postretirement benefits, uncertain income tax positions, certain excess deferred income taxes, and the utilization of production and investment tax credits or proceeds from the sale of tax credits, which the MoPSC previously authorized in earlier electric rate orders. The electric rate increase request reflects the following:
| · | increased infrastructure investments made under Ameren Missouri's Smart Energy Plan, including increased cost of capital and depreciation expense; |
| · | investments in generation resources, including 500 megawatts of solar generation investment for the Boomtown, Cass County and Huck Finn solar projects along with the investments in the Callaway nuclear energy center and other dispatchable generation to support a reliable, low-cost and cleaner mix of energy resources; |
| · | decreased costs resulting from the planned retirement of the Rush Island Energy Center; and |
| · | decreased costs related to the extension of the retirement date of the Sioux Energy Center from 2030 to 2032, consistent with Ameren Missouri's integrated resource plan filed with the MoPSC in September 2023, to ensure reliability. |
The MoPSC proceeding relating to the proposed electric service rate changes will take place over a period of up to 11 months, with a decision by the MoPSC expected by May 2025 and new rates effective by June 2025. Ameren Missouri cannot predict the level of any electric service rate change the MoPSC may approve, whether the requested regulatory recovery mechanisms will be continued, or whether any rate change that may eventually be approved will be sufficient for Ameren Missouri to recover its costs and earn a reasonable return on its investments when the rate change goes into effect.
This combined Form 8-K is being filed separately by Ameren Corporation and Union Electric Company (each a "registrant"). 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.