Keeping An Eye on the Bottom-line - An American [Ameren] Tale

Utility Commission Filings  

 

Included below are certain Ameren regulatory filings. Those listed do not reflect all filings made by all Ameren companies. Ameren will periodically include a selected filing based on its judgment as to the relevance and importance of filed material.

Ameren is unable to predict the ultimate outcome of pending regulatory proceedings, the timing of the final decisions of the various agencies, or the impact on our results of operations, financial position or liquidity.

Select Filings with the Missouri Public Service Commission (MoPSC)

• Ameren Missouri Electric Rate Case
  Case No. ER-2011-0028  
  Description: In a July 13, 2011 rate order, the MoPSC authorized a $172 million increase in annual electric rates for Ameren Missouri, effective in late July 2011.   

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7/14/2011 - JEFFERSON CITY, Mo. -- MISSOURI NEWS HORIZON -- The Missouri Public Service Commission this week approved a roughly $172 million electric rate increase for Ameren Missouri, approximately $91 million less than what the company originally filed for last year.

The commission voted unanimously to allow the rate increase which Ameren says reflects the increase in costs to provide service. However, in its decision, the commission denied the utility company’s request to include any of the cost to rebuild the upper reservoir of the Taum Sauk in the rate increase. The hydroelectric power station suffered a catastrophic failure in 2005.

In Ameren’s original request for $263 million, the company cited costs associated with energy infrastructure investments, higher fuel costs and the installation of two new scrubbers at its Sioux Power Plant as major reasons for seeking a rate increase.

PSC officials estimate that typical residential customers will pay an average of $8 a month more on their electricity bills once the new rates take effect in August.

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Funny, when you originally ask for $263 million and end up getting only $172 million rate increase it almost makes the customers seem like the winner............almost! A typical residential customer will pay on average about eight dollars more a month and Ameren INVESTORS will be able to hang on to their $2.00+ per share earnings. In 2009 per share earning was $2.79, in 2010 it was $2.75 and per share earnings for 2011 is estimated to be $2.38.

On August 12, 2011 Ameren announced:

Ameren Corporation Declares Quarterly Dividend, Payable September 30, 2011

Ameren Corporation declared a quarterly dividend on its common stock of 38.5 cents per share. The common share dividend is payable September 30, 2011, to shareholders of record on September 8, 2011.

As of this writing Ameren stock is trading for $30.68 per share. Let's see if I didn't have to pay the rate increase I could buy 3.1290 shares of Ameren stock, which based on current estimates would earn me $7.447 and if things really went well I might be entitled to get a $1.20 dividend to boot next year. All this whilst in the midst of a 'crappy' economy.

So you see folks, how good or how bad things really are depends a great deal on where you are standing at the time.

But beware fat cats, because if the unemployment rate continues to grow, more and more people won't be opening the front doors of their homes and flicking on the light switches. And bailing out Wall Street guys with their private jets won't seem important at all, because in the end what keeps American strong is the middle-class and no matter how hard to look, it is quickly becoming more and more invisible.

End of Tale - For Now