JEFFERSON CITY,MO -- The Missouri Public Service Commission announced Wednesday they have approved a request filed by Union Electric Company d/b/a Ameren Missouri to lower the fuel and purchased power adjustment charge (FAC) on the bills of its electric customers. A residential customer using 1,100 kWh (kilowatt-hours) per month currently pays an FAC of $4.61 a month. That will drop to $2.07 a month, a decrease of $2.54 a month. The change will take effect on September 23, 2011.
The FAC change is primarily driven by Ameren Missouri's fuel and purchased power costs net of off-system sales revenues experienced during the four month period ending May 31, 2011 and a customer refund of over $17.1 million ordered by the Public Service Commission in an April 2011 decision. In that case, the Commission determined that certain Ameren Missouri power sales agreements with American Electric Power Operating Companies (AEP) and to Wabash Valley Power Association, Inc. (Wabash) during the period of March 1, 2009 through September 30, 2009, should be considered as off-system sales, and, therefore, those revenues should be flowed through the company's FAC.
The case was the first 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.
Ameren Missouri serves approximately 1.2 million electric customers in Missouri.
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