Ameren Missouri's proposal to adjust the fuel and purchased power adjustment charge (FAC) on the bills of its electric customers was approved by the Missouri Public Service Commission Thursday.
The commission received two filings from Ameren Missouri, with the first proposing 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 period of February-to- May 2019. The second filing Ameren Missouri made with the commission was a FAC true-up.
For a residential customer using 1,000 kilowatt-hours of electricity a month, the FAC will increase by 40 cents a month — from a current refund of approximately $1.76 a month to a refund of $1.36 a month. The commission expects the change to take effect on Sept. 24, 2019.
The FAC tariff allows the company to pass an increase or decrease in its net fuel purchased power costs to customers outside of a general rate case, according to the commission on Thursday. The FAC allows the company to recover up to 95 percent of its costs. This encourages conservation and prudence in fuel use by the company, according to the commission. Any charges resulting from the fuel adjustment clause must appear in a separate category on customers’ bills.
The commission says, fuel adjustment charges are intended to help companies deal with volatility in fuel pricing, with the FAC tariff requiring regular adjustments to reflect changes in prices the company has incurred for fuel and for wholesale power purchased to serve customers.
Ameren Missouri provides electric service to 1.28 million electric customers in Missouri.