1.2 Million Missourians Can Expect a Rise in the Cost of Electricity

1 year 11 months 1 week ago May 21, 2014 May 21, 2014 Wednesday, May 21 2014 Wednesday, May 21, 2014 3:04:00 PM CDT in News
By: Shannon Shaver, KOMU 8 Digital Producer

JEFFERSON CITY - The Missouri Public Service Commission has approved a filing made by Ameren Missouri to adjust the fuel and purchased power adjustment charge, or FAC, on the bills of its electric customers.

A residential customer using 1,100 kilowatt hours per month will see the FAC charge increase by approximately $0.66 a month, from $2.97 to $3.63. The change will take effect May 27.

Ameren Missouri stated the proposed adjustment to customer rates primarily reflected changes in its fuel and purchased power costs, including transportation and net of off-system sales revenues experienced during the four month period of October 2013 through January 2014. It also reflected an FAC true-up filing for the period of June 2013 through January 2014.

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 purchase power costs to customers outside of a general rate case.

The FAC allows the company to recover up to 95 percent of its costs 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.

Ameren Missouri provides electric service to approximately 1.2 million electric customers in Missouri.

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