The Missouri Public Service Commission has approved a request filed by Union Electric Company (Ameren Missouri) to adjust the Energy Efficiency Investment Charge (EEIC) rider that appears on the monthly bills of its electric customers.
In its application, the electric company sought to adjust customer rates for changes in Ameren Missouri’s energy efficiency costs.
The current monthly charge for a typical residential customer is $3.70 a month. It will increase to $6 a month effective Jan. 27.
The Energy Efficiency Investment Charge (EEIC) is a charge which encourages utility companies to implement demand-side and energy efficiency programs and was part of the Missouri Energy Efficiency Investment Act (MEEIA). The mechanism is reflected as a separate line item on customer bills.
In a separate action, the PSC also approved two filings made by Ameren Missouri to adjust the fuel and purchased power adjustment charge (FAC) on the bills of its electric customers.
In its first filing, Ameren Missouri proposed to adjust the FAC to reflect changes in its fuel and purchased power costs, including transportation and net of off-system sales revenues experienced during the four month period of June through September 2014. The second filing was Ameren Missouri’s FAC true-up.
A typical residential customer currently pays an FAC of approximately $5.17 a month. As a result of these two filings, the FAC will drop to approximately $4.64 a month. The change is expected to take effect on Jan. 27, leaving Ameren customers with a net increase of $1.77 per month.
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.
Ameren Missouri serves approximately 1.2 million electric customers in Missouri.