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PSC approves 4 new tariffs, looks towards busy summer

JEFFERSON CITY, Mo. – The Missouri Public Service Commission (PSC) met for their regularly scheduled agenda meeting this morning, approving 4 new tariffs. One tariff on the agenda, an Order Regarding Adjusted ISRS Rates and Granting Motion For Expedited Treatment, was withdrawn with the possibility of being addressed at a later time.

There was minimal discussion on the four approved tariffs, which included an order approving a change in the fuel adjustment clause for Ameren and an order regarding adjusted infrastructure system replacement surcharge (ISRS) rates and granting expedited treatment for Missouri Gas Energy.

Ameren Missouri proposed to adjust the FAC to reflect changes in its fuel and purchased power costs, net off-system sales revenues and associated transportation experienced during the four month period of October 2014 through January 2015.

A typical residential customer currently pays an FAC of approximately $4.64 a month. As a result of these two filings, the FAC will drop to approximately $4.62 a month. The change is expected to take effect on May 27, 2015.

The fuel adjustment charge was authorized by the Commission for Ameren Missouri in a regular rate case in 2009. The FAC tariff allows the company to pass increases or decreases in its net fuel and purchased power costs to customers outside of a general rate case.

The FAC allows the company to recover most – up to 95 percent – of its costs, but not all, to encourage conservation and prudence in fuel use by the company. Any charges resulting from the fuel adjustment clause must appear in a separate category on customers’ bills.

Fuel adjustment charges are intended to help companies deal with volatility in fuel pricing. The FAC tariff requires regular adjustments to reflect changes in prices the company has incurred for fuel and for wholesale power purchased to serve customers.

A second filing was Ameren Missouri’s FAC true-up (Case No. ER-2015-0234).

Commissioner Bill Kenney raised questions regarding an order approving a fuel adjustment clause true-up for Ameren, relating to the interest rate, which were answered by staff.

“Interest is calculated cumulatively on a monthly basis,” said Staff Attorney Jeff Keevil. The motion was approved 5-0.

The ISRS request filed by Missouri Gas Energy, a division of Laclede Gas Company (MGE), will adjust the ISRS on the bills of its natural gas customers.  The surcharge first appeared on customer bills in April 2004.

The ISRS adjustment reflects infrastructure replacement investments made by the natural gas company from September 1, 2014 through February 28, 2015.  These costs for natural gas pipeline replacements and relocations are not currently included in MGE’s rates.

The current ISRS for residential customers of MGE is $0.29 a month.  As a result of this case, residential customers will pay an ISRS of $0.71 a month effective May 22, 2015.

The only motion which was not approved unanimously was regarding the first matter on the agenda, which was addressed last regarding Staff’s motion to reject Ameren’s compliance tariff. Chairman Kenney shared that there were several options to choose from and Commissioner Steve Stoll voted in dissension, preferring a different version of the motion. Commissioners Kenney, Hall, and Rupp pointed to Staff’s points as being the most persuasive.

Staff’s motion was approved 4-1, rejecting the compliance tariff.

Closed personnel discussion occurred after the agenda meeting before the commission adjourned.

PSC Chairman Robert Kenney videoconferenced in, while the other four commissioners were present.

The PSC will meet next Wednesday, May 20 at 9:30 a.m. for the next agenda. A presentation will be given by the Natural Resources Defense Council, a New York City-based, non-profit international environmental advocacy group, with offices in Washington, D.C., San Francisco, Los Angeles, Chicago, and Beijing, (NRDC) regarding the findings of a “Missouri specific potential study.”

Following this next week, several evidentiary hearings are scheduled, changing June agenda meeting times. In June, the PSC will meet on Tuesday, June 2 at 9:30 a.m.; (tentatively) on Thursday, June 11 at 11:00 a.m.; Wednesday, June 17 at noon; Wednesday, June 24 at 9:30 a.m.

 

Tariff and New Orders
Item No. Case/Tracking No. Company Name/Brief Description Lead Staff/Additional Staff Contact(s)
1. ER-2014-0258 Union Electric Company — Order Regarding Staff’s Motion To Reject Compliance Tariff Woodruff
2. ER-2015-0234 Union Electric Company — Order Approving Fuel Adjustment Clause True-Up Pridgin
3. ER-2015-0233 Union Electric Company — Order Approving Tariff To Change Fuel Adjustment Clause Rates Pridgin
4. GO-2015-0270 Missouri Gas Energy (Laclede) — Order Regarding Adjusted ISRS Rates and Granting Motion For Expedited Treatment Burton
5. GO-2015-0269 Laclede Gas Company — Order Regarding Adjusted ISRS Rates and Granting Motion For Expedited Treatment Burton
Case Discussion

Other Discussion
Other Description Brief Description Lead Staff/Additional Staff Contact(s)
Commission Scheduling Matters Kenney (Robert)
Legislation Kenney (Robert)
Budget Kenney (Robert)
Closed Session Kenney (Robert)
Litigation Kenney (Robert)
Personnel Kenney (Robert)
Personnel Closed Personnel Discussion Brueggemann