2014 Transmission Stakeholder Meeting
Ameren Transmission Company of Illinois and
Ameren Illinois Company
October 29, 2013
AGENDA
Main Purpose is to review ATXI and AIC Projected 2014 Transmission
Rate Calculations
•
•
•
•
•
•
•
•
•
Background on Attachment O, GG & MM
Overview of MTEP and MVPs
Forward Looking Rates
New Rate Protocols
Approved Incentives
ATXI Comparison to Current Revenue Requirement
ATXI 2012 True Up
AIC Comparison to Current Revenue Requirement
2014 AMIL Pricing Zone NITS Charge
2
AIC AND ATXI
• Both AIC and ATXI are transmission owning subsidiaries of Ameren
Corporation, as well as MISO Transmission Owners (TOs)
• AIC will continue to build and own traditional reliability projects
• ATXI is in the process of building and will own new regional
transmission projects
• Prairie Power, Inc. became a TO in the AMIL pricing zone effective
June 1, 2013.
• The sum of their Attachment O net revenue requirements equals the
total revenue requirement for AMIL pricing zone to be collected
under Schedule 9 (NITS)
3
MISO ATTACHMENTS O, GG & MM
Calculate rates for Schedules 9, 26 & 26-A
•
•
•
•
•
Attachment GG - Schedule 26 (page 5)
Attachment MM - Schedule 26-A (page 6)
Attachment O - net revenue requirement billed under Schedule 9 (page 7)
Schedules 26 and 26-A are billed by MISO
Schedule 9 is billed by Ameren
4
MISO ATTACHMENT GG
• Cost Recovery for certain Network Upgrades
• Eligible projects
• Market Efficiency
• Generator Interconnections
• Cost shared based upon project type
• MISO-wide based on load
• Subregional based on LODF (Line Outage Distribution Factor)
• AIC has three Attachment GG projects completed
• Three additional projects under construction
• ATXI has no Attachment GG projects
5
MISO ATTACHMENT MM
• Cost recovery for Multi-Value Projects (MVPs)
• Very similar format as Attachment GG
• 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
6
MISO ATTACHMENT O, GG & 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
Point-to-Point revenue in Schedules 7 & 8
Rental revenue
Revenue from generator interconnections
• Questions on Tariffs?
7
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
8
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
9
MAP OF AMEREN MVPS
10
FORWARD LOOKING RATES
• Rates better reflect current costs
• Implemented by several MISO TOs
• Requires true-up to actual year costs
•
•
•
•
New calculations based on projected 2014 data
Rate base items -13 month average balance
Interest on over/under recovery
2014 true-up calculated in 2015 and reflected in 2016 rates
• FERC approved forward looking rates for ATXI effective March 1,
2012
• FERC approved forward looking rates for AIC effective January 1,
2013
11
FORWARD LOOKING RATES TIMELINE
• September 1, 2013
• Calculate 2014 revenue requirements for AIC & ATXI
• Includes 2012 true up with interest for ATXI
• October 31, 2013
• Meet with Customers to discuss rate input projections and cost detail
• January 1, 2014
• New rates in effect based on 2014 projections and 2012 true-up for ATXI
• July 1, 2014
• Calculate and post 2013 true-up for AIC and ATXI
• September 1, 2014
• Calculate 2015 revenue requirements for AIC & ATXI
• Includes 2013 true up with interest for AIC & ATXI
• October 31, 2014
• Meet with Customers to discuss rate input projections and cost detail
• January 1, 2015
• New rates in effect based on 2015 projections and 2013 true-ups
12
NEW RATE PROTOCOLS
• On May 16, 2013, FERC issued order EL12-35 concerning required
modifications to MISO rate protocols.
• The order requires MISO and the MISO Transmission Owners to
modify the formula rate protocols to
• Allow for increased scope of participation by Interested Parties
• Allow for increased transparency concerning the implementation of the
formula rate,
• Define a process for the information exchange
• Allow for a provision of additional information, and well-defined and clearlystructured challenge procedure
• Require MISO and the MISO Transmission Owners to make an annual
informational filing with FERC
• The TOs filed compliance filings on September 13, 2013
• Requested an effective date of January 1, 2014
• The protocols will be applicable for the first subsequent Annual Update and
Annual True-Up, which will take place on June 1, 2014
13
NEW PROTOCOL TIMELINE
Date
June 1

Between June 1 and October 1



October 1
November 1
December 1




Proposed Schedule
(Historical and Forward-Looking)
Posting of Annual Update (historical) or True-Up (forwardlooking).
Information Exchange begins.
Informal Challenge Process begins.
Each Transmission Owner must hold an open meeting during which
the Annual Update or True-Up (at a minimum) is reviewed and
Interested Parties may ask questions.
Information Exchange ends.
Informal Challenge Process ends.
Deadline for Transmission Owners to respond to Informal
Challenges submitted by the end date of the Informal Challenge
Process.
For forward-looking rates: any rate changes agreed to by the
Transmission Owner by this date would be included in the projected
rate for the following rate year (changes after this date would be
included in the following year’s True-Up).
December 30

Deadline to submit Formal Challenge to the Commission.
January 31 (following the process)

Transmission Owners submit informational filing to the
Commission.
14
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
15
ATXI Revenue Requirement
Projected 2013 vs Projected 2014
16
ATXI PROJECTIONS FOR 2014
ATXI Rate Base
2.6
2.12
2.18
Total Gross Plant
Total Accum Depreciation
TOTAL NET PLANT
Jan-13
63,438,000
2,652,000
60,786,000
2.18a
100% CWIP RECOVERY
33,665,000
166,179,000
132,514,000
394%
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
-12,172,000
-8,000
3,984,000
0
115,500
0
0
-8,080,500
-15,292,000
-1,009,000
2,877,000
0
395,500
0
0
-13,028,500
-3,120,000
-1,001,000
-1,107,000
0
280,000
0
0
-4,948,000
26%
12513%
-28%
N/A
242%
N/A
N/A
61%
2.30
TOTAL RATE BASE
86,370,500
221,850,500
135,480,000
157%
Page.Line
Jan-14
72,401,000
3,701,000
68,700,000
Change
8,963,000
1,049,000
7,914,000
Percent
14%
40%
13%
17
ATXI PROJECTIONS FOR 2014
ATXI Expenses
Jan-13
Page.Line
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
3.12
TOTAL DEPRECIATION
3.13
3.16
3.18
3.27
TAXES
Payroll
Property
Other
Income Taxes
TOTAL TAXES
TOTAL EXPENSES
Jan-14
Change
Percent
41,000
0
0
883,000
0
0
0
924,000
184,000
0
0
2,980,000
0
68,720
68,720
3,164,000
143,000
0
0
2,097,000
0
68,720
68,720
2,240,000
349%
N/A
N/A
237%
N/A
N/A
N/A
242%
1,006,000
1,064,000
58,000
6%
0
0
25,000
4,189,084
4,214,084
0
0
82,000
10,819,901
10,901,901
0
0
0
57,000
6,630,816
6,687,816
N/A
N/A
N/A
228%
158%
159%
6,144,084
15,129,901
8,985,816
146%
18
ATXI PROJECTIONS FOR 2014
Total ATXI Revenue Requirement
Jan-13
Page.Line
Jan-14
Change
Percent
2.30
TOTAL RATE BASE
86,370,500
221,850,500
135,480,000
157%
4.30
Rate of Return on ACS
8.49%
8.73%
0.23%
3%
3.28
Return from ACS
7,336,763
19,359,229
12,022,466
164%
2.30a
100% CWIP RECOVERY
33,665,000
166,179,000
132,514,000
394%
4.30e
Incremental Rate of Return on HCS
0.00%
-0.10%
-0.10%
-2368%
3.28a
Incremental Return from HCS
1,422
-159,215
-160,637
-11296%
Total Return
7,338,185
19,200,014
11,861,828
162%
Total Expenses
6,144,084
15,129,901
8,985,816
146%
13,482,270
34,329,914
20,847,645
155%
0
0
0
N/A
3.29
TOTAL GROSS REV. REQ.
3.30
Less ATT. GG Adjustment
3.30a
Less ATT. MM Adjustment
5,588,351
25,755,419
20,167,068
361%
3.31
GROSS REV. REQ. UNDER ATT. O
7,893,919
8,574,496
680,577
9%
19
ATXI PROJECTIONS FOR 2014
ATXI 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
Jan-13
7,893,919
487,917
Jan-14
8,574,496
502,000
Change
680,577
14,083
Percent
9%
3%
0
0
0
0
0
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
N/A
N/A
N/A
N/A
N/A
7,406,002
10,761,294
3,355,292
45%
20
ATXI PROJECTIONS FOR 2014
ATXI Attachment MM Calculation - Page 1
(1)
Line No.
1
1a
2
Gross Transmission Plant - Total
Transmission Accumulated Depreciation
Net Transmission Plant - Total
(2)
Attachment O
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)
(3)
(4)
Transmission
238,580,000
Allocator
3,701,000
234,879,000
O&M TRANSMISSION EXPENSE
3
Total O&M Allocated to Transmission
3a
3b
3c
Transmission O&M
Less: LSE Expenses included in above, if any
Less: Account 565 included in above, if any
3d
Adjusted Transmission O&M
4
Annual Allocation Factor for Transmission O&M
Attach O, p 3, line 8 col 5
3,164,000
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
184,000
-
Line 3a minus Line 3b minus Line 3c
184,000
(Line 3d divided by line 1a, col 3)
4.97%
4.97%
2,980,000
1.25%
1.25%
0.00%
0.00%
82,000
0.03%
0.03%
OTHER O&M EXPENSE
4a
4b
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
Line 3 minus Line 3d
Line 4a divided by Line 1, col 3
Attach O, p 3, lines 10 & 11, col 5 (Note H)
(line 5 divided by line 1 col 3)
TAXES OTHER THAN INCOME TAXES
7
8
Total Other Taxes
Annual Allocation Factor for Other Taxes
Attach O, p 3, line 20 col 5
(line 7 divided by line 1 col 3)
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)
10,819,901
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)
19,359,229
8.24%
8.24%
14
Annual Allocation Factor for Return
Sum of line 11 and 13
15
HYPOTHETICAL CAPITAL STRUCTURE (HCS) RETURN
Annual Allocation Factor HCS Return (Note J)
Attach O, p 4, line 30e
Sum of line 4b, 6, and 8
1.28%
12.85%
-0.10%
-0.10%
21
ATXI PROJECTIONS FOR 2014
ATXI Attachment MM Calculation - Page 2
Line No.
(1)
(2)
Project Name
MTEP
Project
Number
Multi-Value Projects (MVP)
1a
Pana-Sugar Creek
1b
Pana-Sugar Creek - Land - No HCS
1c
Sidney-Rising
1d
Sidney-Rising - Land - No HCS
1e
Adair-Ottumwa
1f
Adair-Ottumwa - Land - No HCS
1g
Palmyra-Pawnee
1h
Palmyra-Pawnee - Land - No HCS
1i
Fargo-Galesburg-Oak Grove
1j
Fargo-Galesburg-Oak Grove - Land - No HCS
1k
Pawnee-Pana
1l
Pawnee-Pana - Land - No HCS
1m
Adair-Palmyra
1n
Adair-Palmyra - Land - No HCS
(1)
Line No.
Project Name
2237
2237
2239
2239
2248
2248
3017
3017
3022
3022
3169
3169
3170
3170
(3)
Project Gross
Plant
(Note C)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(2)
MTEP
Project
Number
(4)
(5)
(6)
Transmission
Project
O&M Annual
Accumulated
Allocation
Depreciation
Factor
Page 1 line 4
40,917,314
1,357,137
9,533,439
800,360
528,003
519,420
90,215,717
7,709,954
4,265,599
3,224,180
7,377,699
2,812,781
13,341,659
769,371
4.97%
4.97%
4.97%
4.97%
4.97%
4.97%
4.97%
4.97%
4.97%
4.97%
4.97%
4.97%
4.97%
4.97%
Annual
Allocation for
Transmission
O&M Expense
(Col 4 * Col 5)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(7)
(8)
(9)
Other
Expense
Annual
Annual
Allocation
Allocation for Annual Expense
Factor
Other Expense
Charge
Page 1 line 9 (Col 3 * Col 7) (Col 6 + Col 8)
-
1.28%
1.28%
1.28%
1.28%
1.28%
1.28%
1.28%
1.28%
1.28%
1.28%
1.28%
1.28%
1.28%
1.28%
$525,143.84
$17,417.86
$122,354.72
$10,272.04
$6,776.53
$6,666.38
$1,157,852.82
$98,951.62
$54,745.84
$41,379.99
$94,687.38
$36,099.99
$171,230.45
$9,874.32
$525,143.84
$17,417.86
$122,354.72
$10,272.04
$6,776.53
$6,666.38
$1,157,852.82
$98,951.62
$54,745.84
$41,379.99
$94,687.38
$36,099.99
$171,230.45
$9,874.32
(10)
(11)
(11a)
(12)
(13)
(14)
(15)
(16)
Project Net Plant
Annual
Allocation
Factor for
Return
Annual
Allocation
Factor for HCS
Return
Annual Return
Charge
Project
Depreciation
Expense
Annual
Revenue
Requirement
True-Up
Adjustment
MVP Annual Adjusted
Revenue Requirement
(Note E)
(Sum Col. 9, 12
& 13)
(Note F)
Sum Col. 14 & 15
(Note G)
(Col 3 - Col 4)
(Page 1 line (Page 1 line 15) (Col 10 * (Col 11
14)
(Note J)
+ 11a))
Multi-Value Projects (MVP)
1a
Pana-Sugar Creek
2237
$
40,917,314
12.85%
-0.10% $
5,218,181
$
-
$
5,743,325 $
161,958 $
5,905,282
1b
1c
Pana-Sugar Creek - Land - No HCS
Sidney-Rising
2237
2239
$
$
1,357,137
9,533,439
12.85%
12.85%
0.00% $
-0.10% $
174,376 $
1,215,798 $
-
$
$
191,794 $
1,338,153 $
- $
(200,123) $
191,794
1,138,030
1d
Sidney-Rising - Land - No HCS
2239
$
800,360
12.85%
0.00% $
102,837 $
-
$
113,109 $
-
$
113,109
1e
Adair-Ottumwa
2248
$
528,003
12.85%
-0.10% $
67,336 $
-
$
74,113 $
-
$
74,113
1f
1g
1h
Adair-Ottumwa - Land - No HCS
Palmyra-Pawnee
Palmyra-Pawnee - Land - No HCS
2248
3017
3017
$
$
$
519,420
90,215,717
7,709,954
12.85%
12.85%
12.85%
0.00% $
-0.10% $
0.00% $
66,739 $
11,505,201 $
990,636 $
-
$
$
$
73,406 $
12,663,053 $
1,089,588 $
- $
(413,430) $
- $
73,406
12,249,623
1,089,588
1i
Fargo-Galesburg-Oak Grove
3022
$
4,265,599
12.85%
-0.10% $
543,991 $
-
$
598,737 $
23 $
598,761
1j
1k
Fargo-Galesburg-Oak Grove - Land - No HCS
Pawnee-Pana
3022
3169
$
$
3,224,180
7,377,699
12.85%
12.85%
0.00% $
-0.10% $
414,268 $
940,877 $
-
$
$
455,648 $
1,035,565 $
- $
108,884 $
455,648
1,144,449
1l
1m
Pawnee-Pana - Land - No HCS
Adair-Palmyra
3169
3170
$
$
2,812,781
13,341,659
12.85%
12.85%
0.00% $
-0.10% $
361,409 $
1,701,460 $
-
$
$
397,509 $
1,872,691 $
- $
28,623 $
397,509
1,901,314
1n
Adair-Palmyra - Land - No HCS
3170
$
769,371
12.85%
0.00% $
98,855 $
-
$
108,729 $
2
MVP Total Annual Revenue Requirements
$25,755,419
3
Rev. Req. Adj For Attachment O
$25,755,419
-
-$314,065
$
108,729
$25,441,354
22
ATXI PROJECTIONS FOR 2014
Ameren MVPs
Ameren Name
2013-2014 CAPEX MTEP #s
MTEP Description
Illinois Rivers
$267 million
2237
2239
3017
3169
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
Spoon River
$12 million
3022
Fargo-Galesburg-Oak Grove 345 kV Line
Mark Twain
$7 million
2248
3170
Adair - Ottumwa 345
Adair-Palmyra 345 kV Line
23
ATXI Revenue Requirement
2012 True Up
Projected 2012 vs Actual 2012
24
ATXI 2012 TRUE UP
ATXI Rate Base
Page.Line
2.6
2.12
2.18
Total Gross Plant
Total Accum Depreciation
TOTAL NET PLANT
2.18a
100% CWIP RECOVERY
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
2.30
TOTAL RATE BASE
2012 Projected Effective Mar 12 2012 Actual
53,171,000
52,637,808
1,653,000
1,646,760
51,518,000
50,991,048
Change
-533,192
-6,240
-526,952
Percent
-1%
0%
-1%
4,883,265
-3,858,735
-44%
-11,550,000
0
4,009,000
0
68,110
0
0
-7,472,891
-11,796,750
-573,717
4,241,715
0
155,678
0
0
-7,973,074
0
-246,750
-573,717
232,715
0
87,568
0
0
-500,184
N/A
2%
N/A
6%
N/A
129%
N/A
N/A
7%
52,787,110
47,901,239
-4,885,871
-9%
8,742,000
25
ATXI 2012 TRUE UP
ATXI Expenses
2012 Projected Effective Mar 12
Page.Line
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
3.12
TOTAL DEPRECIATION
3.13
3.16
3.18
3.27
TAXES
Payroll
Property
Other
Income Taxes
TOTAL TAXES
TOTAL EXPENSES
2012 Actual
Change
Percent
44,876
0
0
500,000
0
0
0
544,876
64,071
0
0
1,181,351
0
68,720
68,720
1,245,422
19,195
0
0
681,351
0
68,720
68,720
700,546
43%
N/A
N/A
136%
N/A
N/A
N/A
129%
1,013,856
1,004,914
-8,942
-1%
0
0
0
2,391,316
2,391,316
0
0
60,473
3,430,764
3,491,237
0
0
0
60,473
1,039,448
1,099,921
N/A
N/A
N/A
N/A
43%
46%
3,950,048
5,741,573
1,791,525
45%
26
ATXI 2012 TRUE UP
Total ATXI Revenue Requirement
Page.Line
2012 Projected Effective Mar 12 2012 Actual
52,787,110
47,901,239
9.43%
11.76%
4,980,379
5,631,738
Change
-4,885,871
2.32%
651,359
Percent
-9%
25%
13%
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
8,742,000
0.04%
3,628
4,883,265
-2.53%
-123,554
-3,858,735
-2.57%
-127,182
-44%
-6196%
-3505%
3.29
Total Return
Total Expenses
TOTAL GROSS REV. REQ.
4,984,007
3,950,048
8,934,055
5,508,184
5,741,573
11,249,758
524,177
1,791,525
2,315,702
11%
45%
26%
3.30
3.30a
3.31
Less ATT. GG Adjustment
Less ATT. MM Adjustment
GROSS REV. REQ. UNDER ATT. O
0
1,143,454
7,790,601
0
773,909
10,475,848
0
-369,545
2,685,247
N/A
-32%
34%
27
ATXI 2012 TRUE UP
ATXI 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
2012 Projected Effective Mar 12 2012 Actual
7,790,601
10,475,848
611,000
583,131
Change
2,685,247
-27,869
Percent
34%
-5%
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
N/A
N/A
N/A
N/A
N/A
7,179,601
9,892,717
2,713,116
38%
28
ATXI 2012 TRUE UP
ATXI 2012 Actual Attachment MM Calculation - Page 1
(1)
Line
No.
1
1a
2
Gross Transmission Plant - Total
Transmission Accumulated Depreciation
Net Transmission Plant - Total
(2)
Attachment O
Page, Line, Col.
Attach O, p 2, line 2 + 18a col 5 (Note A)
Attach O, p 2, line 8 col 5 (Note A)
Line 1 minus Line 1a (Note B)
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
Attach O, p 3, lines 10 & 11, col 5 (Note H)
Annual Allocation Factor for G&C Depreciation Expense
(line 5 divided by line 1 col 3)
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
12
13
RETURN
Return on Rate Base (Note I)
Annual Allocation Factor for Return on Rate Base
14
Annual Allocation Factor for Return
Sum of line 11 and 13
15
HYPOTHETICAL CAPITAL STRUCTURE (HCS) RETURN
Annual Allocation Factor HCS Return (Note J)
Attach O, p 4, line 30e
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)
(3)
(4)
Transmission
Allocator
57,521,073
1,646,760
55,874,313
1,245,422
64,071
64,071
3.89%
3.89%
1,181,351
2.05%
2.05%
0.00%
0.00%
Attach O, p 3, line 20 col 5
(line 7 divided by line 1 col 3)
60,473
0.11%
0.11%
Sum of line 4b, 6, and 8
2.16%
2.16%
Attach O, p 3, line 27 col 5
(line 10 divided by line 2 col 3)
3,430,764
6.14%
6.14%
Attach O, p 3, line 28 col 5
(line 12 divided by line 2 col 3)
5,631,738
10.08%
10.08%
Line 3 minus Line 3d
Line 4a divided by Line 1, col 3
16.22%
-2.53%
-2.53%
29
ATXI 2012 ACTUALS
ATXI 2012 Actual Attachment MM Calculation - Page 2
(1)
Line
No.
Project Name
(2)
(3)
MTEP
Project
Number Project Gross Plant
(Note C)
Multi-Value Projects (MVP)
1a
Pana-Sugar Creek
1b
Sidney-Rising
1c
Palmyra-Pawnee
1d
Pawnee-Pana
1e
Adair-Palmyra
1f
Adair-Ottumwa
2237
2239
3017
3169
3170
2248
$
$
$
$
$
$
1g
3022
$
Fargo-Galesburg-Oak Grove
Line
No.
(4)
(1)
(2)
Project Name
MTEP
Project
Number
959,566
251,466
2,857,391
645,114
169,587
-
(5)
Project
Accumulated
Depreciation
(6)
(8)
(9)
Transmission O&M Annual Allocation Other Expense Annual Allocation
Annual Allocation for Transmission Annual Allocation
for Other
Annual Expense
Factor
O&M Expense
Factor
Expense
Charge
Page 1 line 4
(Col 4 * Col 5)
Page 1 line 9
(Col 3 * Col 7)
(Col 6 + Col 8)
$
$
$
$
$
$
-
3.89%
3.89%
3.89%
3.89%
3.89%
3.89%
$
$
$
$
$
$
-
2.16% $
2.16% $
2.16% $
2.16% $
2.16% $
2.16% $
141 $
-
3.89% $
-
2.16% $
(10)
(11)
Project Net Plant
Annual
Allocation
Factor for
Return
(Col 3 - Col 4)
(Page 1 line 14)
(11a)
(12)
Annual Allocation
Factor for HCS
Return
(Page 1 line 15)
(Note J)
Annual Return
Charge
(Col 10 * Col 11 +
11a)
Multi-Value Projects (MVP)
1a
Pana-Sugar Creek
1b
Sidney-Rising
1c
Palmyra-Pawnee
1d
Pawnee-Pana
1e
Adair-Palmyra
1f
Adair-Ottumwa
2237
2239
3017
3169
3170
2248
$
$
$
$
$
$
959,566
251,466
2,857,391
645,114
169,587
-
16.22%
16.22%
16.22%
16.22%
16.22%
16.22%
-2.53%
-2.53%
-2.53%
-2.53%
-2.53%
-2.53%
1g
3022
$
141
16.22%
-2.53% $
Fargo-Galesburg-Oak Grove
(7)
$
$
$
$
$
$
(13)
131,358
34,424
391,157
88,312
23,215
-
Project
Depreciation
Expense
(Note E)
$
$
$
$
$
$
19 $
-
20,716
5,429
61,688
13,927
3,661
-
$
$
$
$
$
$
20,716
5,429
61,688
13,927
3,661
-
3 $
3
(14)
(15)
(16)
Annual Revenue
Requirement
(Sum Col. 9, 12 &
13)
True-Up
Adjustment
MVP Annual Adjusted
Revenue Requirement
Sum Col. 14 & 15
(Note G)
$
$
$
$
$
$
- $
152,074
39,853
452,845
102,239
26,876
-
(Note F)
$
$
$
$
$
$
161,958
(200,123)
(413,430)
108,884
28,623
-
$
$
$
$
$
$
314,032
(160,270)
39,415
211,123
55,500
-
22 $
23
$
46
2
MVP Total Annual Revenue Requirements
$773,909
3
Rev. Req. Adj For Attachment
O
$773,909
-$314,065
$459,845
30
ATXI 2012 TRUE UP
ATXI 2012 Attachment MM True Up
(a)
(b)
Line
No.
1
Project
Name
(c)
(d)
(e)
Projected
Annual
Revenue
Requirement 1
Projected
Attachment MM
p 2 of 2, Col. 14 2
MTEP
Actual
Project Attachment MM
Number
Revenues
Actual Attachment MM revenues for TrueUp Year 1
$
(f)
Actual
Attachment MM
Revenues
Allocated
to Projects 1
[Col. (d), line 1
x (Col. (e), line 2x /
Col. (e), line 3)]2
(g)
(h)
(i)
(j)
(k)
Actual
Annual
Revenue
Requirement 1
Actual
Attachment MM
p 2 of 2, Col. 14 2
True-Up
Adjustment
Principal
Under/(Over)
Applicable
Interest
Rate on
Under/(Over)
True-Up
Adjustment
Interest
Under/(Over)
Total
True-Up
Adjustment
Col. (g) - Col. (f)
Line 5
Col. (h) x Col. (i)
x 24 months 2
Col. (h) + Col. (j)
1,068,808
2a Pana-Sugar Creek
2237
2b Sidney-Rising
2239
243,670
2c Palmyra-Pawnee
3017
899,784
2d Pawnee-Pana
3169
-
2e Adair-Palmyra
2f Adair-Ottumwa
3170
2248
3022
-
-
152,074
152,074
0.27%
9,884
161,958
227,763
39,853
(187,910)
0.27%
(12,213)
(200,123)
841,045
452,845
(388,200)
0.27%
(25,230)
(413,430)
102,239
102,239
0.27%
6,645
108,884
-
26,876
-
26,876
-
0.27%
0.27%
1,747
-
28,623
-
-
22
22
0.27%
1
23
-
Fargo-Galesburg-Oak
2g Grove
3
Subtotal
4
5
Under/(Over) Recovery
Interest rate per month on Under Recovery (expressed to four decimal places)
Amount excludes True-Up Adjustment, as reported in True-Up Year projected Attachment MM, page 2, column 15.
1
$
1,143,454
$
1,068,808 $
773,909
$
(294,899)
$
(19,166) $
(314,065)
0.27%
31
ATXI 2012 TRUE UP
ATXI 2012 Load True Up
2012 ATXI Load and Rate
Months Applicable
Net Att O Revenue Requirement in Effect
AMIL Divisor for Period
ATXI Annual Projected Rate for period
Historic Year Actual Divisor for Pricing Zone
Projected Year Divisor for Pricing Zone
Difference between Historic & Projected Yr Divisor
Prior Year Projected Annual Cost ($ per kw per yr)
Prior Year Divisor True-up
Jan- Feb 1/
2
$7,723,571
7,188,902
$1.0744
Mar - May
3
$7,179,601
7,188,902
$0.9987
June - Dec
7
$7,179,601
7,256,406
$0.9894
Average
12
$7,270,263
7,228,279
$1.0058
7,197,583
7,228,279
30,696
$1.0058
$30,874
1/ - ATXI testimony in ER12-749 included the following statement: "Note that the first true-up for 2012, to be posted in July 2013, will include
revenues for January and February 2012 which are based on 2010 historical costs, plus revenues for the last 10 months of 2012 based on the
new projected ATRR". Therefore, ATXI is including January and February in the volume and rate True-Up Calculation.
32
ATXI 2012 TRUE UP
Ameren Transmission Company of Illinois
Interest on 2012 Attachment O Load True Up
FERC interest rate
ATXI short term debt rate
3.25%
0.668%
Interest Rate updated through July 2013
Rate to be applied to 2012 under recovery
Monthly interest rate
Total True up
Interest on True up
0.6683%
0.0557%
$2,653,328.47
$35,469.69
33
AIC Revenue Requirement
Projected 2013 vs Projected 2014
34
AIC PROJECTIONS FOR 2014
AIC Rate Base
Page.Line
2.6
2.12
2.18
Total Gross Plant
Total Accum Depreciation
TOTAL NET PLANT
2.18a
100% CWIP RECOVERY
2.20
2.21
2.22
2.23
2.25
2.26
2.27
2.28
ADJUSTMENTS TO RATE BASE
Account No. 282
Account No. 283
Account No. 190
Account No. 255
Land Held for Future Use
CWC
Materials & Supplies
Prepayments
TOTAL ADJUSTMENTS
2.30
TOTAL RATE BASE
Jan-13
1,196,828,998
446,390,099
750,438,898
Jan-14
1,327,622,018
465,639,921
861,982,097
Change
130,793,020
19,249,822
111,543,198
Percent
11%
4%
15%
0
0
0
N/A
-220,140,173
-10,556,597
47,301,777
0
528,800
4,399,010
4,093,957
932,348
-173,440,877
-229,080,460
-17,757,369
40,041,062
0
425,040
4,767,079
8,000,238
1,049,481
-192,554,928
0
-8,940,287
-7,200,772
-7,260,714
0
-103,760
368,069
3,906,281
117,132
-19,114,051
N/A
4%
68%
-15%
N/A
-20%
8%
95%
13%
11%
576,998,022
669,427,168
92,429,147
16%
35
AIC PROJECTIONS FOR 2014
AIC Expenses
Jan-13
Page.Line
Jan-14
Change
Percent
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
39,184,517
3,090,097
11,657,490
11,319,374
0
596,873
32,649
35,192,080
42,031,093
2,577,054
13,190,160
12,184,795
0
408,626
96,587
38,136,635
2,846,577
-513,043
1,532,671
865,421
0
-188,247
63,938
2,944,555
7%
-17%
13%
8%
N/A
-32%
196%
8%
3.12
TOTAL DEPRECIATION
22,002,475
22,612,545
610,070
3%
3.13
3.16
3.18
3.27
TAXES
Payroll
Property
Other
Income Taxes
TOTAL TAXES
875,947
1,001,216
367,419
26,404,240
28,648,821
894,566
1,048,910
388,574
31,970,516
34,302,566
0
18,619
47,695
21,155
5,566,277
5,653,745
N/A
2%
5%
6%
21%
20%
TOTAL EXPENSES
85,843,376
95,051,746
9,208,370
11%
36
AIC PROJECTIONS FOR 2014
Total AIC Revenue Requirement
2.30
4.30
3.28
TOTAL RATE BASE
Rate of Return
Return
Jan-13
576,998,022
10.06%
58,068,885
3.29
Total Expenses
TOTAL GROSS REV. REQ.
85,843,376
143,912,261
95,051,746
159,126,620
9,208,370
15,214,359
11%
11%
3.30
3.30a
3.31
Less ATT. GG Adjustment
Less ATT. MM Adjustment
GROSS REV. REQ. UNDER ATT. O
2,393,291
0
141,518,970
5,567,662
0
153,558,958
3,174,371
0
12,039,988
133%
N/A
9%
Page.Line
Jan-14
669,427,168
9.57%
64,074,874
Change
92,429,147
-0.49%
6,005,989
Percent
16%
-5%
10%
37
AIC PROJECTIONS FOR 2014
AIC 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
1.7a
1.7b
1.7
NET REVENUE REQUIREMENT
Prairie Power
AIC Adjusted Revenue Requirement
Jan-13
141,518,970
8,011,058
Jan-14
153,558,958
10,558,034
Change
12,039,988
2,546,976
Percent
9%
32%
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
N/A
N/A
N/A
N/A
N/A
133,507,911
583,724
134,091,635
143,000,924
0
143,000,924
9,493,013
-583,724
8,909,289
7%
N/A
7%
38
AIC PROJECTIONS FOR 2014
AIC Attachment GG Calculation - Page 1
(1)
Line
No.
1
Gross Transmission Plant - Total
2
Net Transmission Plant - Total
(2)
Attachment O
Page, Line, Col.
(3)
(4)
Transmission
Allocator
Attach O, p 2, line 2 col 5 (Note
A)
1,288,643,141
Attach O, p 2, line 14 and 23b
col 5 (Note B)
835,965,823
O&M EXPENSE
3
Total O&M Allocated to Transmission
4
Annual Allocation Factor for O&M
Attach O, p 3, line 8 col 5
(line 3 divided by line 1 col 3)
38,136,635
2.96%
2.96%
GENERAL AND COMMON (G&C) DEPRECIATION EXPENSE
5
Total G&C Depreciation Expense
6
Annual Allocation Factor for G&C Depreciation Expense
Attach O, p 3, lines 10 & 11, col
5 (Note H)
(line 5 divided by line 1 col 3)
1,605,096
0.12%
0.12%
TAXES OTHER THAN INCOME TAXES
7
Total Other Taxes
Attach O, p 3, line 20 col 5
8
Annual Allocation Factor for Other Taxes
(line 7 divided by line 1 col 3)
9
Annual Allocation Factor for Expense
Sum of line 4, 6, and 8
2,332,050
0.18%
0.18%
3.26%
INCOME TAXES
10
Total Income Taxes
11
Annual Allocation Factor for Income Taxes
Attach O, p 3, line 27 col 5
(line 10 divided by line 2 col 3)
31,970,516
3.82%
3.82%
RETURN
12
13
Return on Rate Base
Annual Allocation Factor for Return on Rate
Base
14
Annual Allocation Factor for Return
Attach O, p 3, line 28 col 5
(line 12 divided by line 2 col 3)
Sum of line 11 and 13
64,074,874
7.66%
7.66%
11.49%
39
AIC PROJECTIONS FOR 2014
AIC Attachment GG Calculation - Page 2
(1)
Line
No.
Project Name
(2)
(3)
MTEP Project Project Gross
Number
Plant
(Note C)
1a
1b
1c
1d
Wood River-Roxford 1502 138kV line
Sidney-Paxton 138kV Reconductor 18 miles
Coffeen Plant-Coffeen, North - 2nd. Bus tie
Latham - Oreana 8.5 mile 345kV line
728
870
2829
2068
$3,424,487
$5,972,222
$5,592,558
$18,579,825
(4)
Annual
Allocation
Factor for
Expense
(Page 1 line
9)
3.26%
3.26%
3.26%
3.26%
(5)
(6)
(7)
Annual
Expense
Charge
Project Net
Plant
Annual
Allocation
Factor for
Return
(Col. 3 * Col. 4)
(Note D)
$111,808
$194,991
$182,595
$606,625
$2,985,993
$5,146,204
$5,194,191
$18,312,180
(8)
Project
Annual Return Depreciation
Charge
Expense
(Page 1 line
14)
(Col. 6 * Col. 7)
11.49%
11.49%
11.49%
11.49%
(9)
$343,065
$591,255
$596,769
$2,103,914
(Note E)
$72,620
$149,094
$94,119
$520,805
(10)
(11)
(12)
Annual Revenue
Requirement
True-Up
Adjustment
(Sum Col. 5, 8 & 9)
(Note F)
Network
Upgrade
Charge
Sum Col. 10 &
11
(Note G)
$527,494
$935,341
$873,483
$3,231,345
$0.00
$0.00
$0.00
$0.00
527,494
935,341
873,483
3,231,345
$0
$5,567,662
2
Annual Totals
$5,567,662
3
Rev. Req. Adj For Attachment O
$5,567,662
40
AIC PROJECTIONS FOR 2014
Significant Line Expansion Projects Requiring CoCN (> $25 Million)
Project Name
Latham-Oreana
approval granted
(Attach GG)
Brokaw-S Bloomington
approval granted
(Attach GG)
Total Cost
$25 M
$26 M
ISD
MTEP
2014 MTEP08
2014 MTEP08
MISO ID#
MTEP Description
2068
Convert Oreana 345 kV Bus to 6-Position Ring Bus with 3000 A Capability;
Construct 8.5 miles of 345 kV line (2-954 kcmil ACSR conductor or equivalent
capability) from Oreana Substation to 345 kV Line 4571 tap to Latham
Substation. 3-345 kV PCB's at Oreana Substation.
2069
South Bloomington Area 345/138 kV Substation - Install 345/138 kV, 560 MVA
Transformer. Extend new 345 kV line approximately 5 miles from Brokaw
Substation to South Bloomington Substation. Install 1-138 kV PCB at South
Bloomington Substation, and 2-345 kV PCB's at Brokaw Substation.
Fargo-Mapleridge
approval granted
(Attach GG)
$57 M
2016 MTEP09
2472
Tap existing 345kV line from Duck Creek to Tazewell and create new Maple
Ridge Substation. Build a new supply line to the Fargo Substation by extending
20 miles of 345kV from the new Maple Ridge Substation. Create Fargo Station
and install 560 MVA 345/138kV Transformer.
Bondville-SW Campus
approval granted
$36 M
2015 MTEP10
2992
Bondville-S.W. Campus 138 kV - Construct 8 miles of new 138 kV line. Construct
138 kV Ring Bus at Bondville (2 new PCB's) and a 138 kV Ring Bus at Champaign
S.W. Campus (4 new PCB's).
41
AIC PROJECTIONS FOR 2014
Modifications to Existing Facilities
Category
Reliability/aging infrastructure
replacement
Clearance for planned line rating
2013-2014 CAPEX Projects
$197 million
$168 million
216
92
Right of way expansion
$46 million
39
Improved Reliability
$12 million
18
Description
These projects are primarily driven by the need to upgrade the transmission system based on meeting NERC
standards or Ameren Planning Criteria and Guidelines. The NERC TPL standards set forth a set of tests that a
transmission system must meet for a list of plausible scenarios, including contingent scenarios. Ameren Planning
Criteria and Guidelines (C&G) are filed each year at FERC and constitute an additional, or complementary, set of
tests that the transmission system must meet.
These projects are primarily driven by the need to upgrade the transmission system to support expected flows
on the transmission circuits. Load growth, plant additions/retirements, and flow changes due to future system
expansions are primary inputs into the decision to either increase ground clearances using existing wire or in
some cases, increasing ground clearances with wire replacement, in order to achieve higher circuit ratings.
These projects are driven by the need to increase the rights and rights-of-way associated with 40 transmission
corridors. The primary benefit of this set of projects is increased reliability of the system in the area of
vegetation. In many cases, the existing rights-of-way are much narrower than the widths specified in Ameren's
Planning Criteria and Guidelines for reliable circuit operation. The 2003 blackout and the recent 2011 Northeast
US major outage event had vegetation as an incipient cause. After both events, and with the adoption of the
FAC-003 standard, FERC has emphasized the need for increased vegetation management efforts which these
projects support.
These projects are driven by the need to address reliability concerns driven by system topology, configuration,
or condition. Operating issues, including outages, usually identify these kinds of projects. The majority of these
projects involve additions of equipment in substations, e.g. relaying and/or circuit breakers.
42
AMIL SCHEDULE 9 NITS RATE FOR 2014
AMIL Schedule 9 Rate Calculation
Page.Line
1.7
1.7
1.7
1.15
.
.
*
AIC Adjusted Revenue Requirement
ATXI Adjusted Revenue Requirement
PPI Adjusted Revenue Requirement
Total Revenue Requirement
Ameren Illinois Divisor
Annual Cost ($/kW/Yr)
Network & P-to-P Rate ($/kW/Mo)
2013 *
133,507,912
7,406,002
3,555,338
144,469,252
7,175,041
20.135
1.678
2014
143,000,924
10,761,294
3,555,338
157,317,556
7,045,000
22.330
1.861
Change
9,493,012
3,355,292
0
12,848,304
(130,041)
2.195
0.183
Percent
7%
45%
0%
9%
-2%
11%
11%
2013 rates above include PPI effective June 1, 2013. PPI revenue requirement subject to outcome of
FERC Dockets EL13-69 and EL13-83. Actual AMIL Network & P-to-P Rate for 1/1/13 - 5/31/13 was
$1.643/kW/Mo. The PPI revenue requirement will be updated annually on June 1st.
43
MISO WEB LINKS
• Transmission Pricing - Attachments O, GG & MM Information
• https://www.midwestiso.org/MarketsOperations/MarketInformation/Page
s/TransmissionPricing.aspx
• Ameren OASIS
• http://oasis.midwestiso.org/oasis/AMRN
• MTEP 11
• https://www.midwestiso.org/Planning/TransmissionExpansionPlanning/P
ages/MTEP11.aspx
• Schedule 26 & 26-A Indicative Charges
• https://www.midwestiso.org/Planning/TransmissionExpansionPlanning/P
ages/MTEPStudies.aspx
44
QUESTIONS?