Press release submitted by Ameren|
The Illinois Commerce Commission Wednesday approved new electricity delivery rates for Ameren Illinois for 2013 that will take effect January 1. The 2013 rates reflect a further reduction of $5 million in revenue from the rates set under the initial formula rates approved in September.
The vote was 4-1 with Commissioner Erin O'Connell-Diaz dissenting.
Electric delivery rates are set annually according to the Energy Infrastructure Modernization Act (EIMA) which established a formula rate to recover actual, prudently incurred costs for the delivery of electricity to customers. Utilities such as Ameren Illinois that elect formula rates under EIMA are required to upgrade and modernize their distribution system, including deployment of a smart grid metering system.
Ameren Illinois filed a proposal in January requesting approval of its Modernization Action Plan–Pricing tariff to implement formula rates under the EIMA. The Commission order in that case, Docket No. 12-0001, reduced revenue by $48.1 million. The company had proposed a reduction of $19.9 million. Those rates expire at the end of 2012.
The largest adjustments to the company's proposal were made in the areas of state income tax rates and in the capital structure that contributes to the determination of the overall rate of return.
The return on equity for Ameren Illinois is 9.71 percent and the overall rate of return is 8.66 percent.
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