Ameren Transmission Rate Stakeholder Presentation
Questions at 10/17/2012 Meeting
1. ICC
Who will make the 205 filing?
Ameren recalls this question in regards to the 205 filing to change the cost allocation
methodology for Baseline Reliability Projects. MISO and the MISO Transmission
Owners made this filing on October 25, 2012 (Docket No. ER13-186).
2. PPI
Concerning the FERC filing, is it going to change the way projects can be bid on?
ER13-186 did not address bidding on transmission projects. However, the
MISO/MISO Transmission Owners compliance filing for Order 1000 filed on the same
day addressed competitive bidding on future transmission projects (Docket No. ER13187)
3. PPI
Are the existing facilities in GG?
AIC has three completed projects that are include in its Attachment GG revenue
requirement. MISO MTEP projects 728, 870 and 2829. Please note that the posted
calculation also shows project 2065. After the information was posted, MISO
informed Ameren that this was inappropriately labeled as a cost-shared project on
their website. The final rates for 2013 will reflect this change.
4. PPI
Any specific projects in Schedule 9 or is it the legacy system? Does MISO have a say?
Any new projects that would alter the basic characteristics of the transmission
system would be submitted to MISO for review in MTEP. This would include the
construction of new lines, upgrading facilities or new interconnections. New projects
would be reviewed in the subregional planning meetings. MISO would not need to
review replacement-in-kind projects or other repairs that maintain the existing
system.
5. PPI
What is in GG versus the Attachment O?
Technically, all projects are in the Attachment O calculation. However, certain
projects eligible for cost sharing under Attachment GG and MM are removed before
determining the zonal Schedule 9 rate. As noted above, only three AIC projects
eligible for cost-sharing have been completed. All other facilities are included in the
Net Attachment O revenue requirement (Schedule 9).
6. PPI
What is the Big Muddy Project status?
Ameren has received FERC approval for rate incentives for the Big Muddy project,
contingent on the project being approved in MTEP. The Big Muddy project is listed
as three separate projects in MISO MTEP11 report. Baldwin-Grand Tower-NW Cape
(#3010) is in Appendix B. The other two projects Grand Tower-EW Frankfurt (#3015)
and Grand Tower-Joppa (#3039) are in Appendix C.
7. ICC
Why is there less Attachment MM in table of presentation?
Ameren may not have captured this question correctly, but believes the question
may be asking why Attachment MM revenue requirement is deducted from
Attachment O on page 3, line 30a. Attachment O calculates the total transmission
revenue requirement for all transmission facilities. Attachment GG and MM allocate
a portion of the total revenue requirement to specific projects that are eligible for
cost sharing. Therefore, the Attachment GG and MM revenue requirements to be
recovered under Schedules 26 and 26-A must be removed from Attachment O before
determining the Schedule 9 rate.
8. ICC
How is point to point revenue distributed?
The Transmission Owners Agreement addresses revenue distribution. Revenue from
point to point transactions that go through or out of MISO are distributed to TOs as
follows: 50% based on gross book plant of each Transmission Owner and 50% based
on load flows from the transaction. Therefore, the revenue distribution must be
calculated for each reservation.
9. ICC
Question was raised about clarifying dates of June 12 and January 13.
On slides 23-26, there are two columns labeled Jun-12 and Jan-13. These columns
compare the revenue requirement components for AIC revenue requirement
calculation currently in effect as of June 2012 based on historical 2011 FERC Form 1
data; versus the projected 2013 revenue requirement calculation which will become
effective January 2013.
10. ICC
Rate of Return – is it indicative of debt cost or does it take into account adjustment
for Good Will?
Slide 25 shows the projected overall rate of return for 2013 is 10.06% compared to
the current rate of return of 10.44%. Two primary factors explain the lower overall
ROR. First, the average debt cost decreased from 7.84% in 2011 to 7.55% in 2013.
Second, the 2013 calculation reflects total equity being reduced by $411 million of
goodwill in 2013. This lowered the equity ratio to 53%.
11. ICC
Is the large increase in gross plant because of new projects? Is CWIP included?
Yes. The gross transmission plant for 2013 has increased due to significant capital
expenditures. As of the stakeholder meeting, the Illinois Rivers project was the only
Ameren project eligible for CWIP. Therefore, some CWIP is included for ATXI. While
we expect AIC to incur some capital expenditures related to Illinois Rivers for
modifications to its existing facilities, there are none in 2013.
12. ICC
Is the return based on 13 month average?
The capital structure is based on 13 month average balances for debt, preferred and
common stock. The overall rate of return is applied to the 13 month average rate
base. The only exception is that deferred income taxes are a simple average of the
beginning and end of year balances.
13. ICC
Regarding the new projects being built in 2013; was a filing was made? Any projects
subject to cost-sharing under Attachment GG?
The 2013 AIC revenue requirement reflects any projects expected to be in service
before the end of 2013. While there are currently three new AIC projects already
approved by MISO and eligible for cost sharing under Attachment GG, none of the
three are expected to be in service by the end of 2013. The three projects are
Brokaw-South Bloomington, Latham-Oreana and Fargo-Mapleridge. Since these
projects have already been approved under previous MTEPs, they will be cost-shared
once completed.
14. PPI
What is the forecast for Cap Ex for next year and 2014?
Ameren has not publically disclosed its annual forecasted CapEx.
15. ICC
How are the mechanics of true-up and carry charge handled? What about overcollecting?
The true-up is a two step process. The first true-up is for projected versus actual
revenue requirement. The second true-up is for projected load used in calculating
the projected rate versus the actual load for the year. The AIC true-up for 2013 will
be calculated in 2014 after the 2013 FERC Form 1 is available. The true-up
calculation will be shared with customers at the October 2014 stakeholder meeting.
If an over-collection occurs, the refund, including 24 months of interest at the FERC
interest rate, will be included in the projected 2015 transmission rates. ATXI will
have its first true-up for 2012 included in the projected 2014 transmission rates.