2014 Attachment O True-Up Stakeholder Meeting Ameren Transmission Company of Illinois July 31, 2015 AGENDA Main Purpose is to review ATXI 2014 Transmission Rate True-Up Calculations • Timeline • ATXI 2014 True Up An additional meeting will held in October to review the 2016 Projected Transmission Rate calculations. 2 PROTOCOL TIMELINE Schedule (Forward-Looking Protocols) Date June 1 Posting of annual true-up for prior year September 1 Deadline for annual true-up meeting September 1 Posting of net projected revenue requirement for following year October 15 Deadline for annual projected rate meeting November 1 Deadline for joint meeting on regional cost-shared projects March 15 Transmission Owners submit informational filing to the Commission 3 ATXI Revenue Requirement Projected 2014 vs Actual 2014 4 ATXI 2014 ATTACHMENT O TRUE UP Ameren Transmission Company of Illinois Attachment O Revenue Requirement True-Up (WP 4) For the Year Ended 12/31/2014 Attachment O Net Actual Revenue Requirement (Attachment O, Pg 1, Line 7) $ 10,933,054 Net Projected Revenue Requirement (2014 Projected Attachment O, Pg 1, Line 7) $ 10,761,294 Under/(Over) Recovery of Net Revenue Requirement $ 171,760 Historic Year Actual Divisor for Pricing Zone (AIC Attachment O, Pg 1, Line 15) Projected Year Divisor for Pricing Zone (AIC 2014 Projected Attachment O, Pg 1, Line 15) Difference between Historic & Projected Yr Divisor Prior Year Projected Annual Cost ($ per kw per yr) Prior Year Under/(Over) Divisor True-up $ $ $ 7,205,351 7,045,000 160,351 1.53 (244,936) Total Under/(Over) Recovery $ (73,176) Monthly Interest Rate (to be updated through July 31, 2015) Interest For 24 Months $ Total Under/(Over) Recovery Including Interest (Amount to be included in Projected 2016 Attachment O) $ 0.2708% (4,756) (77,932) 5 ATXI 2014 RATE BASE 2014 Projection Page.Line 2.6 2.12 2.18 Total Gross Plant Total Accum Depreciation TOTAL NET PLANT 2.18a 2014 Actual Change Percent 72,401,000 3,701,000 68,700,000 72,397,529 3,737,481 68,660,048 -3,471 36,481 -39,952 0% 1% 0% 100% CWIP RECOVERY 166,179,000 158,255,653 -7,923,347 -5% 2.20 2.21 2.22 2.25 2.26 2.27 2.28 ADJUSTMENTS TO RATE BASE Account No. 282 Account No. 283 Account No. 190 Land Held for Future Use CWC Materials & Supplies Prepayments TOTAL ADJUSTMENTS -15,292,000 -1,009,000 2,877,000 0 395,500 0 0 -13,028,500 -11,973,024 -2,605,466 1,363,222 0 846,504 0 289,825 -12,078,939 3,318,976 -1,596,466 -1,513,778 0 451,004 0 289,825 949,561 -22% 158% -53% N/A 114% N/A N/A -7% 2.30 TOTAL RATE BASE 221,850,500 214,836,762 -7,013,738 -3% 6 ATXI 2014 EXPENSES 2014 Projection Page.Line 2014 Actual 3.1 3.1a 3.2 3.3 3.4 3.5 3.5a 3.8 O&M Transmission Less LSE Expenses Less Account 565 A&G Less FERC Annual Fees Less EPRI, ect. Plus Trans. Reg. Comm. Exp TOTAL O&M 184,000 0 0 2,980,000 0 68,720 68,720 3,164,000 293,915 0 0 6,478,117 0 51,164 51,164 6,772,031 3.12 TOTAL DEPRECIATION 1,064,000 1,343,909 3.13 3.16 3.18 3.27 TAXES Payroll Property Other Income Taxes TOTAL TAXES 0 0 82,000 10,819,901 10,901,901 0 136,093 79,293 10,424,975 10,640,361 TOTAL EXPENSES 15,129,901 18,756,301 Change Percent 109,915 0 N/A 0 N/A 3,498,117 0 N/A -17,556 -17,556 3,608,031 279,909 0 N/A 136,093 N/A -2,707 -394,926 -261,540 3,626,401 60% 117% -26% -26% 114% 26% -3% -4% -2% 24% 7 ATXI 2014 CAPITAL STRUCTURE Capital Structure - 2014 Projection Page.Line 4.27 4.28 4.29 4.3 Long Term Debt Preferred Stock Common Stock Total $ 91,077,000 0 121,344,000 212,421,000 % 43% 0% 57% 100% Cost Weighted 0.0386 0.0165 0.0000 0.0000 0.1238 0.0707 0.0873 44% 0% 56% 100% Cost Weighted 0.0380 0.0167 0.0000 0.0000 0.1238 0.0693 0.0860 Capital Structure - 2014 Actual Page.Line 4.27 4.28 4.29 4.3 Long Term Debt Preferred Stock Common Stock Total Change in Return $ 69,846,154 0 88,870,491 158,716,645 % -0.1214% 8 ATXI 2014 TOTAL REVENUE REQUIREMENT Page.Line 2.30 4.30 3.28 TOTAL RATE BASE Rate of Return on ACS Return from ACS 2.30a 4.30e 3.28a 100% CWIP RECOVERY Incremental Rate of Return on HCS Incremental Return from HCS 2014 Projection 2014 Actual 221,850,500 214,836,762 8.73% 8.60% 19,359,229 18,486,299 Change -7,013,738 -0.12% -872,930 Percent -3% -1% -5% 166,179,000 -0.10% -159,215 158,255,653 0.00% 926 -7,923,347 0.10% 160,141 -5% -101% -101% 3.29 Total Return Total Expenses TOTAL GROSS REV. REQ. 19,200,014 15,129,901 34,329,914 18,487,226 18,756,301 37,243,527 -712,788 3,626,401 2,913,613 -4% 24% 8% 3.30 3.30a 3.31 Less ATT. GG Adjustment Less ATT. MM Adjustment GROSS REV. REQ. UNDER ATT. O 0 25,755,419 8,574,496 0 28,053,247 9,190,280 0 N/A 2,297,829 615,784 9% 7% 9 ATXI 2014 TRUE UP & NET REVENUE REQUIREMENT Page.Line 1.1 1.6 Gross Revenue Requirement Total Revenue Credits 1.6a 1.6b 1.6c 1.6d 1.6e Historic Year Actual ATRR * Projected ATRR from Prior Year Prior Year ATRR True-Up Prior Year Divisor True-Up Interest on Prior Year True-Up 1.7 NET REVENUE REQUIREMENT 2014 Projection 2014 Actual 8,574,496 9,190,280 502,000 946,023 Change 615,784 444,023 Percent 7% 88% 9,892,717 7,270,263 2,622,454 30,874 35,470 9,892,717 7,270,263 2,622,454 30,874 35,470 (0) 0 (0) 0 (0) 0% 0% 0% 0% 0% 10,761,294 10,933,054 171,760 2% * 2012 True-up included in 2014 Projection and Actual. 10 ATXI 2014 ATTACHMENT MM ATXI Attachment MM Calculation - Page 1 Line No. Page, Line, Col. Attach O, p 2, line 2 + 18a col 5 (Note A) Attach O, p 2, line 8 col 5 Line 1 minus Line 1a (Note B) Transmission Allocator 1 1a 2 Gross Transmission Plant - Total Transmission Accumulated Depreciation Net Transmission Plant - Total 3 3a 3b 3c 3d O&M TRANSMISSION EXPENSE Total O&M Allocated to Transmission Transmission O&M Less: LSE Expenses included in above, if any Less: Account 565 included in above, if any Adjusted Transmission O&M 4 Annual Allocation Factor for Transmission O&M 4a 4b OTHER O&M EXPENSE Other O&M Allocated to Transmission Annual Allocation Factor for Other O&M 5 6 GENERAL AND COMMON (G&C) DEPRECIATION EXPENSE Total G&C Depreciation Expense Annual Allocation Factor for G&C Depreciation Expense 7 8 TAXES OTHER THAN INCOME TAXES Total Other Taxes Annual Allocation Factor for Other Taxes 9 Annual Allocation Factor for Other Expense 10 11 INCOME TAXES Total Income Taxes Annual Allocation Factor for Income Taxes Attach O, p 3, line 27 col 5 (line 10 divided by line 2 col 3) 10,424,975 4.61% 4.61% 12 13 RETURN Return on Rate Base (Note I) Annual Allocation Factor for Return on Rate Base Attach O, p 3, line 28 col 5 (line 12 divided by line 2 col 3) 18,486,299 8.18% 8.18% 14 Annual Allocation Factor for Return 15 HYPOTHETICAL CAPITAL STRUCTURE (HCS) RETURN Annual Allocation Factor HCS Return (Note J) Attach O, p 3, line 8 col 5 Attach O, p 3, line 1 col 5 Attach O, p 3, line 1a col 5, if any Attach O, p 3, line 2 col 5, if any Line 3a minus Line 3b minus Line 3c (Line 3d divided by line 1a, col 3) 229,682,093 3,659,671 226,022,422 6,772,031 293,915 293,915 8.03% 8.03% 6,478,116 2.82% 2.82% Attach O, p 3, lines 10 & 11, col 5 (Note H) (line 5 divided by line 1 col 3) 332,558 0.14% 0.14% Attach O, p 3, line 20 col 5 (line 7 divided by line 1 col 3) 215,386 0.09% 0.09% Line 3 minus Line 3d Line 4a divided by Line 1, col 3 Sum of line 4b, 6, and 8 3.06% Sum of line 11 and 13 Attach O, p 4, line 30e 12.79% 0.00% 0.00% 11 ATXI 2014 ATTACHMENT MM ATXI Attachment MM Calculation - Page 2 (1) Line No. Project Name Multi-Value Projects (MVP) 1a Pana-Sugar Creek - CWIP 1b Pana-Sugar Creek - Plant in Service - No HCS 1c Pana-Sugar Creek - Land - No HCS 1d Sidney-Rising - CWIP 1e Sidney-Rising - Plant in Service - No HCS 1f Sidney-Rising - Land - No HCS 1g Adair-Ottumwa - CWIP 1h Adair-Ottumwa - Plant in Service - No HCS 1i Adair-Ottumwa - Land - No HCS 1j Palmyra-Pawnee - CWIP 1k Palmyra-Pawnee - Plant in Service - No HCS 1l Palmyra-Pawnee - Land - No HCS 1m Fargo-Galesburg-Oak Grove - CWIP Fargo-Galesburg-Oak Grove - Plant in Service - No 1n HCS 1o Fargo-Galesburg-Oak Grove - Land - No HCS 1p Pawnee-Pana - CWIP 1q Pawnee-Pana - Plant in Service - No HCS 1r Pawnee-Pana - Land - No HCS 1s Adair-Palmyra - CWIP 1t Adair-Palmyra - Plant in Service - No HCS 1u Adair-Palmyra - Land - No HCS (2) (3) MTEP Project Number (4) (5) Project Accumulated Depreciation Project Gross Plant (Note C) Transmission O&M Annual Allocation Factor Page 1 line 4 (6) (7) (8) (9) Annual Allocation for Transmission O&M Expense (Col 4 * Col 5) Other Expense Annual Allocation Factor Page 1 line 9 Annual Allocation for Other Expense (Col 3 * Col 7) Annual Expense Charge (Col 6 + Col 8) 2237 2237 2237 2239 2239 2239 2248 2248 2248 3017 3017 3017 3022 $ $ $ $ $ $ $ $ $ $ $ $ $ 36,573,425 1,991,065 13,598,616 1,277,725 130,615 358,986 85,415,094 8,129,151 1,868,202 $ $ $ $ $ $ $ $ $ $ $ $ $ - 8.03% 8.03% 8.03% 8.03% 8.03% 8.03% 8.03% 8.03% 8.03% 8.03% 8.03% 8.03% 8.03% $ $ $ $ $ $ $ $ $ $ $ $ $ - 3.06% 3.06% 3.06% 3.06% 3.06% 3.06% 3.06% 3.06% 3.06% 3.06% 3.06% 3.06% 3.06% $1,118,794.66 $0.00 $60,907.42 $415,986.71 $0.00 $39,086.10 $3,995.56 $0.00 $10,981.51 $2,612,879.43 $0.00 $248,673.76 $57,149.01 $1,118,794.66 $0.00 $60,907.42 $415,986.71 $0.00 $39,086.10 $3,995.56 $0.00 $10,981.51 $2,612,879.43 $0.00 $248,673.76 $57,149.01 3022 3022 3169 3169 3169 3170 3170 3170 $ $ $ $ $ $ $ $ 3,392,205 6,650,913 2,813,762 14,018,788 769,450 $ $ $ $ $ $ $ $ - 8.03% 8.03% 8.03% 8.03% 8.03% 8.03% 8.03% 8.03% $ $ $ $ $ $ $ $ - 3.06% 3.06% 3.06% 3.06% 3.06% 3.06% 3.06% 3.06% $0.00 $103,768.82 $203,453.90 $0.00 $86,074.03 $428,839.92 $0.00 $23,537.75 $0.00 $103,768.82 $203,453.90 $0.00 $86,074.03 $428,839.92 $0.00 $23,537.75 12 ATXI 2014 ATTACHMENT MM ATXI Attachment MM Calculation - Page 2 (continued) Line No. (1) (2) Project Name MTEP Project Number Multi-Value Projects (MVP) 1a Pana-Sugar Creek - CWIP 1b Pana-Sugar Creek - Plant in Service - No HCS 1c Pana-Sugar Creek - Land - No HCS 1d Sidney-Rising - CWIP 1e Sidney-Rising - Plant in Service - No HCS 1f Sidney-Rising - Land - No HCS 1g Adair-Ottumwa - CWIP 1h Adair-Ottumwa - Plant in Service - No HCS 1i Adair-Ottumwa - Land - No HCS 1j Palmyra-Pawnee - CWIP 1k Palmyra-Pawnee - Plant in Service - No HCS 1l Palmyra-Pawnee - Land - No HCS 1m Fargo-Galesburg-Oak Grove - CWIP 1n Fargo-Galesburg-Oak Grove - Plant in Service - No HCS 1o Fargo-Galesburg-Oak Grove - Land - No HCS 1p Pawnee-Pana - CWIP 1q Pawnee-Pana - Plant in Service - No HCS 1r Pawnee-Pana - Land - No HCS 1s Adair-Palmyra - CWIP 1t Adair-Palmyra - Plant in Service - No HCS 1u Adair-Palmyra - Land - No HCS 2237 2237 2237 2239 2239 2239 2248 2248 2248 3017 3017 3017 3022 3022 3022 3169 3169 3169 3170 3170 3170 (10) (11) (11a) (12) (13) (14) Project Net Plant Annual Allocation Factor for Return Annual Allocation Factor for HCS Return Annual Return Charge Project Depreciation Expense Annual Revenue Requirement (Col 3 - Col 4) (Page 1 line 14) (Page 1 line 15) (Note J) (Col 10 * (Col 11 + 11a)) (Note E) (Sum Col. 9, 12 & 13) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 36,573,425 1,991,065 13,598,616 1,277,725 130,615 358,986 85,415,094 8,129,151 1,868,202 3,392,205 6,650,913 2,813,762 14,018,788 769,450 12.79% 12.79% 12.79% 12.79% 12.79% 12.79% 12.79% 12.79% 12.79% 12.79% 12.79% 12.79% 12.79% 12.79% 12.79% 12.79% 12.79% 12.79% 12.79% 12.79% 12.79% 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 4,678,228 254,684 1,739,444 163,438 16,707 45,919 10,925,727 1,039,827 238,968 433,908 850,740 359,918 1,793,189 98,423 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 5,797,022 315,591 2,155,431 202,524 20,703 56,901 13,538,606 1,288,500 296,117 537,677 1,054,194 445,992 2,222,029 121,961 2 MVP Total Annual Revenue Requirements $28,053,247 3 Rev. Req. Adj For Attachment O $28,053,247 (15) (16) MVP Annual Adjusted True-Up Adjustment Revenue Requirement Sum Col. 14 & 15 (Note G) (Note F) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 161,958 (200,123) (413,430) 23 108,884 28,623 - -$314,065 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 5,958,980 315,591 1,955,308 202,524 20,703 56,901 13,125,176 1,288,500 296,140 537,677 1,163,078 445,992 2,250,652 121,961 $27,739,182 13 ATXI 2014 ATTACHMENT MM TRUE-UP (a) (b) (c) (d) (e) MTEP Actual Projected Annual Line Project Project Attachment MM No. Name Number 1 2a 2b 2c 2d 2e 2f 2g 2h 2i 2j 2k 2l 2m 2n Actual Attachment MM revenues for True-Up Year 1 Pana-Sugar Creek - CWIP Pana-Sugar Creek - Land - No HCS Sidney-Rising - CWIP Sidney-Rising - Land - No HCS Adair-Ottumwa - CWIP Adair-Ottumwa - Land - No HCS Palmyra-Pawnee - CWIP Palmyra-Pawnee - Land - No HCS Fargo-Galesburg-Oak Grove - CWIP Fargo-Galesburg-Oak Grove - Land - No HCS Pawnee-Pana - CWIP Pawnee-Pana - Land - No HCS Adair-Palmyra - CWIP Adair-Palmyra - Land - No HCS 3 Subtotal 4 Under/(Over) Recovery 5 Applicable Interest rate per month (expressed to four decimal places) Revenues (f) Actual Attachment MM Revenues (g) (h) (i) (j) (k) Actual Annual True-Up Adjustment Applicable Interest True-Up Adjustment Total Revenue Allocated Revenue Principal Rate on Interest True-Up Requirement 1 Projected Attachment MM to Projects 1 [Col. (d), line 1 x (Col. (e), line 2x / Requirement 1 Actual Attachment MM Under/(Over) Under/(Over) Under/(Over) Adjustment p 2 of 2, Col. 142 Col. (e), line 3)]2 p 2 of 2, Col. 142 Col. (g) - Col. (f) Line 5 Col. (h) x Col. (i) x 24 months 2 Col. (h) + Col. (j) $ 23,828,085 2237 2237 2239 2239 2248 2248 3017 3017 3022 3022 3169 3169 3170 3170 5,743,325 191,794 1,338,153 113,109 74,113 73,406 12,663,053 1,089,588 598,737 455,648 1,035,565 397,509 1,872,691 108,729 $ 25,755,420 $ 5,313,539 177,442 1,238,016 104,645 68,567 67,913 11,715,449 1,008,052 553,932 421,551 958,071 367,763 1,732,553 100,593 23,828,086 $ 5,797,022 315,591 2,155,431 202,524 20,703 56,901 13,538,606 1,288,500 296,117 537,677 1,054,194 445,992 2,222,029 121,961 483,483 138,149 917,415 97,879 (47,864) (11,012) 1,823,157 280,448 (257,815) 116,126 96,123 78,229 489,476 21,368 1 Amount excludes True-Up Adjustment, as reported in True-Up Year projected Attachment MM, page 2, column 15. 2 Rounded to whole dollars. 3,980 1,137 7,552 806 (394) (91) 15,008 2,309 (2,122) 956 791 644 4,029 176 487,463 139,286 924,967 98,685 (48,258) (11,103) 1,838,165 282,757 (259,937) 117,082 96,914 78,873 493,505 21,544 34,781 $ 4,259,942 28,053,247 $ interest rate to be updated through July 31, 2015 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% 4,225,161 $ 0.0343% 14 ATXI 2014 MVP SPEND Ameren MVPs Ameren Name 2014 CAPEX MTEP #s MTEP Description 2237 2239 3017 3169 3170 Pana - Mt. Zion - Kansas - Sugar Creek 345 kV line Sidney to Rising 345 kV line Palmyra-Quincy-Meredosia - Ipava & Meredosia-Pawnee 345 kV Line Pawnee to Pana - 345 kV Line New Palmyra Substation (Maywood) Illinois Rivers $226.6 million Spoon River $3.6 million 3022 Fargo-Galesburg-Oak Grove 345 kV Line Mark Twain $2.7 million 2248 3170 Adair - Ottumwa 345 Adair-Palmyra 345 kV Line 15 QUESTIONS? Appendix Supplemental Background Information (Not covered during presentation) 17 APPENDIX - MISO ATTACHMENTS O & MM Calculate rates for Schedules 9, 26 & 26-A • • • • • Attachment GG - Schedule 26 Attachment MM - Schedule 26-A Attachment O - net revenue requirement billed under Schedule 9 Schedules 26 and 26-A are billed by MISO Schedule 9 is billed by Ameren 18 APPENDIX - MISO ATTACHMENT MM • Cost recovery for Multi-Value Projects (MVPs) • Criteria for being considered • Developed through planning process and support energy policy • Multiple types of economic value across multiple pricing zones with benefit to costs > 1 • Address at least one: • Projected NERC violation • Economic-based issue • Cost shared across MISO based on load • AMIL Zone is approximately 9% • Ameren MVPs will primarily be built by ATXI • AIC will be responsible for modifications needed to its existing facilities 19 APPENDIX - MISO ATTACHMENT O & MM • All transmission costs included in Attachment O calculation • Schedule 9 based on net revenue requirement – reductions for: • Costs recovered in Schedules 26 & 26-A • Since ATXI has no Attachment GG projects, there is no deduction for 26 • Revenue Credits • Point-to-Point revenue in Schedules 7 & 8 • Rental revenue • Revenue from generator interconnections 20 APPENDIX - MISO TRANSMISSION EXPANSION PLAN (MTEP) • Developed on an annual basis building upon previous analysis • • MISO, Transmission Owners & Stakeholders Includes subregional planning meetings • MTEP goals • • • • • • • Ensure the reliability of the transmission system Ensure compliance with NERC Standards Provide economic benefits, such as increased market efficiency Facilitate public policy objectives, such as meeting Renewable Portfolio Standards Address other issues or goals identified through the stakeholder process Multiple future scenarios analyzed End result – comprehensive, cohesive plan for MISO footprint • MTEP approved by MISO Board of Directors 21 MISO MVPS • Brief history of development • Began investigating value added expansion in 2003 • 2008 Regional Generation Outlet Study (RGOS) - formed basis of Candidate MVP portfolio • Portfolio refined due to additional analysis • MISO approved portfolio of 17 Projects • Seven transmission line segments (MTEP proj numbers) in Ameren territory • Ameren identifies these three projects as: • Illinois Rivers (four line segments) • Spoon River • Mark Twain (two line segments) • Broadly cost-shared, AMIL pricing zone allocated 9% of each MVP no matter where project is located or who builds it 22 APPENDIX - MAP OF AMEREN MVPS 23 APPENDIX - RATE INCENTIVES • FERC approved the following rate incentives for Illinois Rivers in Docket No. EL10-80 – CWIP (no AFUDC) – Abandonment (requires additional filing prior to recovery) – Hypothetical capital structure during construction for ATXI • FERC approved similar incentives for Spoon River and Mark Twain Projects in Docket No. ER12-2216 24 APPENDIX - MISO WEB LINKS • Transmission Pricing - Attachments O, GG & MM Information • https://www.misoenergy.org/MarketsOperations/TransmissionSettlement s/Pages/TransmissionPricing.aspx • Ameren OASIS • http://www.oasis.oati.com/AMRN/index.html • MTEP 14 • https://www.misoenergy.org/Planning/TransmissionExpansionPlanning/ Pages/MTEP14.aspx • MTEP 15 • https://www.misoenergy.org/Planning/TransmissionExpansionPlanning/ Pages/MTEP15.aspx • Schedule 26 & 26-A Indicative Charges • https://www.misoenergy.org/Planning/TransmissionExpansionPlanning/ Pages/MTEPStudies.aspx 25 APPENDIX - ATXI • Additional questions on these topics can be sent to Ameren at: – MISOFormulaRates@ameren.com 26