The Public Service Commission made two changes which will affect Lake Area residents. First the P.S.C. adjusted Ameren Missouri’s fuel and purchased power adjustment charge to reflect the higher costs of fuel. A typical residential customer will see an increase from $3.63 currently paid to approximately $5.17 per month. The P.S.C. is also reducing the surcharge on monthly phone bills for Relay Missouri. The charge will go from 8 cents to 6 cents in December. The full releases are below:
The Missouri Public Service Commission has approved a filing made by Union Electric Company d/b/a Ameren Missouri to adjust the fuel and purchased power adjustment charge (FAC) on the bills of its electric customers. Ameren Missouri stated the proposed adjustment to customer rates primarily reflected changes in its fuel and purchased power costs, including transportation and net of off-system sales revenues experienced during the four month period of February 2014 through May 2014. It also reflected an FAC true-up filing (Case No. ER-2015-0021).
A typical residential customer currently pays an FAC of approximately $3.63 a month. As a result of these two filings, the FAC will increase to approximately $5.17 a month. The change is expected to take effect on September 24, 2014. The fuel adjustment charge was authorized by the Commission for Ameren Missouri in a regular rate case in 2009. 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. Ameren Missouri provides electric service to approximately 1.2 million electric customers in Missouri.
The Missouri Public Service Commission has reduced the surcharge that consumers pay to fund Relay Missouri, a statewide dual-party telephone relay service for the deaf, hearing-impaired and speech-impaired. The surcharge appears on the monthly telephone bills of Missouri consumers. Relay Missouri provides telephone accessibility to people who are deaf, hearing-impaired and speech-impaired and is funded through a monthly, per line surcharge. The current surcharge is $0.08 a month. The surcharge will drop to $0.06 a month effective December 1, 2014.
The surcharge was reduced after Commission review of a recommendation made by the Public Service Commission Staff. The PSC Staff reviewed anticipated fund expenditures and payments and recommended the surcharge be reduced. “The Commission finds the Staff’s review was properly conducted. Technological changes, such as internet-based relay services, are resulting in traditional relay users migrating away from Relay Missouri. Thus, adopting Staff’s recommendation should allow the fund to remain solvent and available for those customers who need it, while reducing the bills of all Missouri landline subscribers,” said the Commission.
The Missouri General Assembly established Relay Missouri in 1990. Under state law, the Commission is required to review the surcharge at least every two years, but not more than on an annual basis. The review is to ascertain that necessary funds are available for providing the program.