Amid major system upgrades to ensure reliability and resiliency, Ameren Missouri requests PSC review to adjust rates next summer

Rhea-AI Summary

Ameren Missouri has filed a request with the Missouri Public Service Commission to adjust electric base rates, aiming for a mid-2023 implementation. This adjustment is to recover costs from significant upgrades for grid reliability and cleaner energy initiatives. If approved, average residential customers could see a rise of about $12 per month, equating to a 2.3% average yearly increase since 2017. The company claims its rates remain over 23% below national averages, emphasizing ongoing cost management amid economic challenges.

Positive

• Request to adjust rates for infrastructure upgrades enhances grid reliability.
• Current rates are over 23% below national and Midwest averages.
• Improvements in energy reliability reported, with a 40% reduction in outage durations.

Negative

• Approval of rate adjustment increases customer costs by an average of $12/month.
• Potential scrutiny from the PSC and stakeholders could delay implementation.

Customer benefits of investments include bolstering electric grid and more clean energy 

ST. LOUIS, Aug. 1, 2022 /PRNewswire/ -- Today, Ameren Missouri filed with the Missouri Public Service Commission (PSC) a request to adjust its electric base rates next year. The new rates would take effect in mid-2023 to recover the cost of major upgrades for electric system reliability and resiliency for customers, as well as investments to support the transition to cleaner energy for the benefit of customers and local communities.

The filing made today will be carefully reviewed by the PSC and many other stakeholders over the next 11 months. If the request is approved by regulators, the rate adjustment in 2023 would cost an average residential electric customer about $12 a month (based on approximately 1,017 kilowatt-hours of usage per month). Ameren Missouri's electric rates today are only slightly higher than they were five years ago and this rate adjustment request, if approved, would reflect a yearly average increase of approximately 2.3% since 2017.

"The electric system upgrades Ameren Missouri has made are crucial to ensuring our customers have safe and reliable energy during the continued transition to cleaner sources of generation," said Mark Birk, chairman and president of Ameren Missouri, a subsidiary of Ameren Corporation, (NYSE: AEE). "Our customers depend on us to deliver reliable service and they're seeing fewer outages with shorter durations, delivering up to a 40% improvement in reliability on circuits with innovative technology. Thanks to these investments, our system performs better even in extreme weather events such as Winter Storm Uri last year and the intense heat we are experiencing this summer."

Even in this challenging economic climate, Ameren Missouri is working to keep electric rates as low as possible for customers by cutting its costs and making prudent investments. Residential rates for Ameren Missouri customers are more than 23% below national and Midwest averages, according to the latest Edison Electric Institute Typical Bills and Average Rates Report.

"Our goal is to keep rates as low as possible, while protecting long-term energy reliability and resiliency for our customers," said Warren Wood, vice president of regulatory and legislative affairs at Ameren Missouri. "We do this by focusing on necessary and prudent system investments our customers depend on, while also reducing our operational costs wherever possible in these uncertain economic times. We work to meet the needs of our customers today while transitioning to a stronger, smarter, cleaner, more reliable and resilient grid for future generations."

The need for reliable, resilient and affordable energy has never been greater. Ameren Missouri changed its long-term energy plan earlier this summer to address these needs while thoughtfully transitioning to cleaner sources of energy and to achieve its net-zero carbon emissions goal by 2045. 

Key components of the rate review adjustment request include:

• Strengthening the grid through Ameren Missouri's Smart Energy Plan, including infrastructure upgrades bolstering reliability and resiliency, more renewable generation, installation of smart meters, and the addition of programs to stimulate economic growth for communities across the state.
• Offering rate options that fit a range of customer lifestyles, thanks to how smart meters communicate with the updated grid. Customer benefits include the opportunity to reduce costs by using information from their smart meter to help shift the timing of their energy usage. Smart meters also enable quicker restoration in the event of an outage and faster connection when moving or starting service.
• Evolving our generation plans for cleaner energy and to ensure the system remains reliable and resilient for all customers.
• Providing cleaner energy to the communities we serve through the Neighborhood Solar program by installing parking lot solar facilities in partnership with local organizations.

A slide presentation with additional details regarding Ameren Missouri's rate review adjustment request will be available at AmerenInvestors.com beginning at 4 p.m. Central time on Aug. 1, 2022.

As the communities we serve manage current economic conditions, Ameren Missouri has made even more energy assistance available. The company recently expanded its Clean Slate program by adding $1 million in additional funding to help those who may not qualify for state or federal assistance. Ameren Missouri also offers flexible payment options and connects customers with government and community assistance funding programs through the Low-Income Home Energy Assistance Program (LIHEAP).

"We want our customers to know we are here to help them," Birk said. "Any customers in need of assistance should contact us today for information regarding access to energy assistance grants with expanded eligibility requirements and to arrange flexible payment options. We also have energy efficiency programs and energy management tools to make it easier for customers to manage their energy use."

For more information about the filing, visit AmerenMissouri.com/InvestingInMissouri.

About Ameren Missouri

Ameren Missouri has been providing electric and gas service for more than 100 years, and the company's electric rates are among the lowest in the nation. Ameren Missouri's mission is to power the quality of life for its 1.2 million electric and 135,000 natural gas customers in central and eastern Missouri. The company's service area covers 64 counties and more than 500 communities, including the greater St. Louis area. For more information, visit Ameren.com/Missouri or follow us on Twitter at @AmerenMissouri or Facebook.com/AmerenMissouri.

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SOURCE Ameren Missouri

FAQ

What is Ameren Missouri's proposed rate adjustment for 2023?

Ameren Missouri proposes a rate adjustment that could increase average residential electric bills by about $12 per month.

How much have Ameren Missouri's rates increased since 2017?

If the proposed rate adjustment is approved, it would reflect an average yearly increase of approximately 2.3% since 2017.

Why is Ameren Missouri seeking a rate adjustment?

The rate adjustment is aimed at recovering costs associated with major upgrades for electric system reliability and resiliency, as well as investments in cleaner energy.

What impact will the rate increase have on customers?

If approved, the average residential electric customer will see an increase of about $12 a month.

What percentage below national averages are Ameren Missouri's rates?

Ameren Missouri's residential rates are more than 23% below national and Midwest averages.