2014 Annual Attachment O Stakeholder Meeting
Ameren Missouri
August 18,2014
AGENDA
Primary purpose is to review AMMO Pricing Zone Historical 2013
Transmission Rate Calculations which became effective June 1, 2014
•
•
•
•
•
•
Background on Attachment O,GG & MM
Overview of MTEP
Ameren Missouri Rate Inputs
New Rate Protocols
Comparison to Previous Revenue Requirement
2014 AMMO Pricing Zone NITS Charge
2
AMEREN MISSOURI
• Ameren Missouri is a transmission-owning subsidiary of Ameren
Corporation, as well as a MISO Transmission Owner (TO)
• Ameren Illinois and Ameren Transmission Company of Illinois (ATXI)
are two other Ameren subsidiaries that are MISO TOs.
• ATXI was formed to build and own new regional transmission
projects such as the MISO Multi-Value Projects
• Ameren Missouri will continue to build and own traditional reliability
projects needed to meet local needs and continue to maintain its
existing transmission system
• Ameren Missouri is currently building a new local reliability project in
Southeast Missouri.
• Ameren Missouri is the only MISO Transmission Owner in the
AMMO pricing zone.
3
MISO ATTACHMENTS O & GG
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
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)
• Ameren Missouri has three Attachment GG projects completed
• One additional project under construction
• These projects were approved by MISO under prior Tariff provisions
which allowed limited cost sharing for certain reliability projects
• Attachment MM is very similar to Attachment GG
• Applies to MISO Multi-Value Projects, but is not applicable to Ameren
Missouri since it is not building or developing any MVPs.
5
MISO ATTACHMENT O & GG
• All transmission costs included in Attachment O calculation
• Schedule 9 based on net revenue requirement – reductions for:
• Any costs recovered in Schedules 26 & 26-A
• Revenue Credits
• Point-to-Point revenue in Schedules 7 & 8
• Rental revenue
• Revenue from generator interconnections
• Questions on Tariffs?
6
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
7
AMMO RATE INPUTS
• Rates calculated using prior year FERC Form 1 data (historical
calculation)
• Rate base items based on Dec 31 ending balances
• Only wholesale customers pay the Schedule 9 Rate in AMMO
– About 6% of load
• Ameren Missouri retail customers
– Transmission facilities & costs included in bundled rates set by MoPSC
– Pay for other MISO transmission related costs through the FAC
• Note that some Transmission Owners’ rate calculations are different
– Rates are initially set based on projected data
– Annual True-up calculation to reflect actual costs reported in Form 1
8
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 information exchange
• Allow for 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
9
NEW RATE PROTOCOLS
• On March 20, 2014, FERC issued order ER13-2379 concerning
additional required modifications to MISO rate protocols.
• The TOs filed compliance filings on May 19, 2014
• The protocols were applicable for the first subsequent Annual Update and
Annual True-Up, which took place on June 1, 2014
10
NEW PROTOCOL TIMELINE
Action
(Historical)
Date
June 1



Posting of annual update
Information exchange period begins.
Review period begins.
September 1

Deadline for annual meeting
November 1
December 1
January 10
January 31
February 28






Deadline for joint meeting on regional cost-shared projects
Deadline for Interested Parties to submit information requests
Deadline for Transmission Owners to respond to information requests
Deadline for Interested Parties to submit Informal Challenges
Deadline for Transmission Owners to respond to Informal Challenges
Any rate changes agreed to by the Transmission Owner will be included in the
Information Filing and will be reflected in the Annual Update for the
following Rate Year.
March 15

Transmission Owners submit informational filing to the Commission.
March 31

Deadline for Interested Parties to file Formal Challenge at the Commission
11
AMMO Revenue
Requirement
June 2013 vs June 2014 Filings
12
AMMO JUNE 2014 FILING
Rate Base
Page.Line
2.6
2.12
2.18
Total Gross Plant
Total Accum Depreciation
TOTAL NET PLANT
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
Jun-13
776,445,309
269,340,644
507,104,666
Jun-14
843,566,308
282,535,080
561,031,228
Change
67,120,999
13,194,436
53,926,563
Percent
9%
5%
11%
-131,790,859
-8,122,036
2,918,080
762,157
3,098,421
5,034,721
847,278
-127,252,239
-151,726,236
-6,995,936
5,296,917
799,480
3,090,433
6,883,099
901,287
-141,750,957
-19,935,377
1,126,101
2,378,837
37,323
-7,988
1,848,378
54,009
-14,498,717
15%
-14%
82%
5%
0%
37%
6%
11%
379,852,426
419,280,272
39,427,845
10%
13
AMMO JUNE 2014 FILING
Expenses
Jun-13
Jun-14
3.1
3.1a
3.2
3.3
3.4
3.5
3.5a
3.7
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
Transmission Lease Payments
TOTAL O&M
48,403,470
7,206,932
22,683,675
6,135,752
0
559,298
9,639
688,410
24,787,367
56,001,557
6,469,229
30,809,160
5,704,062
0
445,447
67,179
674,502
24,723,464
7,598,087
-737,703
8,125,485
-431,691
0
-113,851
57,540
-13,908
-63,903
16%
-10%
36%
-7%
N/A
-20%
597%
-2%
0%
3.12
TOTAL DEPRECIATION
17,210,309
18,065,642
855,333
5%
3.13
3.16
3.18
3.27
TAXES
Payroll
Property
Other
Income Taxes
TOTAL TAXES
568,377
7,105,907
103,478
14,594,551
22,372,313
477,114
7,898,117
87,186
16,529,798
24,992,215
-91,263
792,211
-16,291
1,935,246
2,619,902
-16%
11%
-16%
13%
12%
TOTAL EXPENSES
64,369,990
67,781,322
3,411,332
5%
Page.Line
Change
Percent
14
AMMO JUNE 2014 FILING
Capital Structure
Capital Structure - 2013
Page.Line
4.27
4.28
4.29
4.30
Long Term Debt
Preferred Stock
Common Stock
Total
$
3,709,271,000
80,759,500
3,973,425,626
7,763,456,126
%
48%
1%
51%
100%
Cost
Weighted
0.0567
0.0271
0.0424
0.0004
0.1238
0.0634
0.0909
46%
1%
52%
100%
Cost
Weighted
0.0588
0.0273
0.0424
0.0005
0.1238
0.0649
0.0927
Capital Structure - 2014
Page.Line
4.27
4.28
4.29
4.30
Long Term Debt
Preferred Stock
Common Stock
Total
Change in Return
$
3,465,276,000
80,759,500
3,912,960,927
7,458,996,427
%
0.1846%
15
AMMO JUNE 2014 FILING
Revenue Requirement
Page.Line
Jun-13
379,852,426
9.09%
34,518,214
Jun-14
419,280,272
9.27%
38,875,220
Change
39,427,845
0.18%
4,357,006
Percent
10%
2%
13%
2.30
4.30
3.28
TOTAL RATE BASE
Rate of Return
Return
3.29
Total Expenses
TOTAL GROSS REV. REQ.
64,369,990
98,888,204
67,781,322
106,656,542
3,411,332
7,768,338
5%
8%
3.30
3.30a
3.31
Less ATT. GG Adjustment
Less ATT. MM Adjustment
GROSS REV. REQ. UNDER ATT. O
9,037,581
0
89,850,623
8,879,847
0
97,776,695
-157,734
0
7,926,072
-2%
N/A
9%
16
AMMO JUNE 2014 FILING
Net Revenue Requirement
1.1
1.6
Gross Revenue Requirement
Total Revenue Credits
Jun-13
89,850,623
8,417,404
1.7
NET REVENUE REQUIREMENT
81,433,219
Page.Line
Jun-14
97,776,695
9,091,089
Change
7,926,072
673,685
Percent
9%
8%
88,685,606
7,252,387
9%
17
AMMO JUNE 2014 FILING
Schedule 9 Rate Calculation
Page.Line
1.7
1.15
.
.
Net Revenue Requirement
Ameren Missouri Divisor
Annual Cost ($/kW/Yr)
Network & P-to-P Rate ($/kW/Mo)
2013
81,433,219
6,847,897
11.892
0.991
2014
88,685,606
6,900,307
12.852
1.071
Change
7,252,387
52,410
0.961
0.080
Percent
9%
1%
8%
8%
18
AMMO JUNE 2014 FILING
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)
829,297,144
Attach O, p 2, line 14 and 23b
col 5 (Note B)
553,300,739
Attach O, p 3, line 8 col 5
24,723,464
O&M EXPENSE
3
Total O&M Allocated to Transmission
4
Annual Allocation Factor for O&M
(line 3 divided by line 1 col 3)
2.98%
2.98%
GENERAL AND COMMON (G&C) DEPRECIATION EXPENSE
5
Total G&C Depreciation Expense
Attach O, p 3, lines 10 & 11,
col 5 (Note H)
618,458
6
Annual Allocation Factor for G&C Depreciation Expense
(line 5 divided by line 1 col 3)
0.07%
0.07%
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
8,462,417
1.02%
1.02%
4.08%
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)
16,529,798
2.99%
2.99%
RETURN
12
Return on Rate Base
13
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
38,875,220
7.03%
7.03%
10.01%
19
AMMO JUNE 2014 FILING
Attachment GG Calculation - Page 2
(1)
Line
No.
(2)
(3)
Big River-Rockwood 138 kV
Reconductor Sioux-Huster-1 and -3 138 kV
Gray Summit : 2nd 345/138 kV Transformer
(1)
Line
No.
1a
1b
1c
(5)
MTEP Project Project Gross Annual Allocation Annual Expense
Number
Plant
Factor for Expense
Charge
Project Name
(Note C)
1a
1b
1c
(4)
Project Name
Big River-Rockwood 138 kV
Reconductor Sioux-Huster-1 and -3 138 kV
Gray Summit : 2nd 345/138 kV Transformer
152
1240
2061
$
$
$
(Page 1 line 9)
19,927,624
15,481,687
22,610,367
(Col. 3 * Col. 4)
4.08%
4.08%
4.08%
(9)
(10)
(11)
MTEP Project
Number
Project
Depreciation
Expense
Annual Revenue
Requirement
True-Up
Adjustment
(Note E)
(Sum Col. 5, 8 & 9)
(Note F)
152
1240
2061
$293,785
$284,683
$407,350
$3,031,514.04 $
$2,396,017.40 $
$3,452,315.33 $
2
Annual Totals
$8,879,847
3
Rev. Req. Adj For Attachment O
$8,879,847
(7)
(8)
Project Net
Plant
Annual
Allocation
Factor for
Return
(Page 1 line
14)
Annual Return
Charge
(Note D)
$812,302.53 $
$631,074.43 $
$921,658.23 $
(2)
(6)
19,228,224
14,782,578
21,204,346
(Col. 6 * Col. 7)
10.01% $1,925,426.82
10.01% $1,480,260.12
10.01% $2,123,306.73
(12)
Network
Upgrade
Charge
Sum Col. 10 &
11
(Note G)
-
3,031,514
2,396,017
3,452,315
$0
$8,879,847
20
AMEREN MISSOURI
Significant Line Expansion Projects Not in Service
Project Name
Total Cost
Cape Girardeau Electric
Reliability Project
(Northwest Cape Area
345/161 kV Substation)
$50 M
ISD
MTEP
2016 MTEP11
MISO ID#
2306
MTEP Description
Install 560 MVA, 345/161 kV Transformer. Provide 345 kV supply from 11 mile
345 kV line extension from Lutesville Substation
21
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 13
• https://www.misoenergy.org/Planning/TransmissionExpansionPlanning/
Pages/MTEP13.aspx
• MTEP 14
• https://www.misoenergy.org/Planning/TransmissionExpansionPlanning/
Pages/MTEP14.aspx
• Schedule 26 & 26-A Indicative Charges
• https://www.misoenergy.org/Planning/TransmissionExpansionPlanning/
Pages/MTEPStudies.aspx
22
QUESTIONS?