Confidential - Submitted Pursuant to 16 USC 825 and 42 USC 16452
Do Not Release Pursuant to FOIA.
Ameren Illinois Company and Ameren Transmission Company of Illinois
Response to ICC Staff Data Requests
Docket No.
Response Date: 09/23/2014
ICC 1.1
What is the basis of assigning Administrative and General Expenses to ATXI? Why is
there such a large variation between the projection and the actual A&G expenses for
ATXI?
RESPONSE:
The projected 2013 revenue requirement calculation was performed in August 2012
based in part on information in Ameren’s corporate forecast model as well as year-to-date
information. At that time, ATXI was still a very new entity and the corporate forecast
model had not been updated to include all appropriate corporate allocation factors.
Therefore, we expected that the A&G used in the projected 2013 would be lower than
what we would actually experience for actual 2013 results. However, our preference was
to accept a lower amount in the projected rate calculations based on known 2012 results.
However, here are some more specific details behind the A&G increases from 2012 to
2013. In general, most A&G costs in 2013 were directly assigned to ATXI.
Account 920 A&G Salaries - All transmission employees are Ameren Service employees.
Certain leadership employees charge time to A&G account 920 when working on ATXI
non-capital issues. In 2013, these costs would have been directly assigned to account
920. As shown in the 2013 FERC Form 1, Account 920 increased from $199k in 2012 to
$511k in 2013.
Account 921 increased from $705k in 2012 to $2,264k in 2013. Almost the entire
amount for both years is related to credit facility fees for short-term borrowing utilized by
Ameren Corp. These borrowing facilities provide a source of credit for Ameren Corp to
provide short term financing for ATXI construction activities.
Account 923 - charges for outside services increased from $105k in 2012 to $328k in
2013. These costs would have been directly assigned.
Account 931 – rents increased from $100k, in 2012 to $263k in 2013 due to building
space rental, which is allocated from the service company based on a corporate indirect
allocation that is based on the results of all direct and direct allocated allocations. Since
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the growth of ATXI resulted in more direct and direct allocated expense from the service
company in 2013, ATXI also received a larger share of rent expense through the
corporate indirect allocation.
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ICC 1.2
Are any of the O&M costs assigned to AIC and/or ATXI related to participation in the
stakeholder processes of RTOs other than MISO? If so, are any of those costs associated
with participation in PJM’s Transmission Expansion Advisory Committee?
RESPONSE:
Ameren has been participating in the PJM and SPP stakeholder process on a limited basis
for many years. Ameren has multiple direct interconnections with both RTOs and must
follow the planning activities of each to keep abreast of cross-border projects and
proposals that would impact the MISO and Ameren systems. Participation also helps
Ameren understand how our customer may be impacted by other RTO actions and
provides Ameren opportunities to advocate on customers behalf. Costs incurred in 2013
by Ameren for the general purpose of following other RTO activities would be allocated
across the Ameren transmission-owning companies.
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