Change to Ameren Missouri electric fuel adjustment charge approved
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JEFFERSON CITY – The Missouri Public Service Commission has approved a filing made by Union Electric Company d/b/a Ameren Missouri to adjust the fuel adjustment clause (FAC) charge on the bills of its electric customers.
Ameren Missouri made two filings with the Commission. In its first filing, 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 June through September 2022.
The second filing was Ameren Missouri’s FAC. For a residential customer using 1,000 kWh (kilowatt-hours) of electricity a month, the FAC will increase from a current FAC of approximately $2.70 a month to an FAC of approximately $6.27 a month. The change will take effect on February 1, 2023.
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.