2015 Annual Attachment O Stakeholder Meeting
Ameren Missouri
July 15, 2015
AGENDA
Primary purpose is to review AMMO Pricing Zone Historical 2014
Transmission Rate Calculations which became effective June 1, 2015
• Protocol Timeline
• Comparison to Previous Revenue Requirement
• 2014 AMMO Pricing Zone NITS Charge
2
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
3
Ameren Missouri
Revenue Requirement
June 2014 vs June 2015 Calculation
4
AMEREN MISSOURI JUNE 2015 CALCULATION
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-14
843,566,308
282,535,080
561,031,228
Jun-15
973,505,027
297,149,632
676,355,395
Change
129,938,719
14,614,552
115,324,166
Percent
15%
5%
21%
-151,726,236
-6,995,936
5,296,917
799,480
3,090,433
6,883,099
901,287
-141,750,957
-186,057,383
-10,290,367
8,195,106
3,334,568
3,795,767
4,625,788
1,197,264
-175,199,258
-34,331,147
-3,294,432
2,898,189
2,535,088
705,334
-2,257,311
295,977
-33,448,301
23%
47%
55%
317%
23%
-33%
33%
24%
419,280,272
501,156,137
81,875,865
20%
5
AMEREN MISSOURI JUNE 2015 CALCULATION
Expenses
Jun-14
Jun-15
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
56,001,557
6,469,229
30,809,160
5,704,062
0
445,447
67,179
674,502
24,723,464
57,433,561
6,344,330
28,061,521
6,903,236
0
543,536
170,481
808,248
30,366,139
1,432,004
-124,899
-2,747,639
1,199,175
0
98,089
103,302
133,746
5,642,675
3%
-2%
-9%
21%
N/A
22%
154%
20%
23%
3.12
TOTAL DEPRECIATION
18,065,642
20,805,412
2,739,770
15%
3.13
3.16
3.18
3.27
TAXES
Payroll
Property
Other
Income Taxes
TOTAL TAXES
477,114
7,898,117
87,186
16,529,798
24,992,215
524,054
8,806,314
69,111
19,292,707
28,692,186
46,940
908,197
-18,076
2,762,909
3,699,971
10%
11%
-21%
17%
15%
TOTAL EXPENSES
67,781,322
79,863,737
12,082,415
18%
Page.Line
Change
Percent
6
AMEREN MISSOURI JUNE 2015 CALCULATION
Capital Structure
Capital Structure - 2014
Page.Line
4.27
4.28
4.29
4.3
Long Term Debt
Preferred Stock
Common Stock
Total
$
3,465,276,000
80,759,500
3,912,960,927
7,458,996,427
%
46%
1%
52%
100%
Cost
Weighted
0.0588
0.0273
0.0424
0.0005
0.1238
0.0649
0.0927
48%
1%
51%
100%
Cost
Weighted
0.0538
0.0257
0.0424
0.0004
0.1238
0.0633
0.0895
Capital Structure - 2015
Page.Line
4.27
4.28
4.29
4.3
Long Term Debt
Preferred Stock
Common Stock
Total
Change in Return
$
3,711,276,000
80,759,500
3,971,807,203
7,763,842,703
%
-0.3221%
7
AMEREN MISSOURI JUNE 2015 CALCULATION
Revenue Requirement
2.30
4.30
3.28
TOTAL RATE BASE
Rate of Return on ACS
Return from ACS
Jun-14
419,280,272
9.27%
38,875,220
3.29
Total Expenses
TOTAL GROSS REV. REQ.
67,781,322
106,656,542
79,863,737
124,716,019
12,082,415
18,059,477
18%
17%
3.30
3.30a
3.31
Less ATT. GG Adjustment
Less ATT. MM Adjustment
GROSS REV. REQ. UNDER ATT. O
8,879,847
0
97,776,695
8,089,316
0
116,626,703
-790,531
0
18,850,008
-9%
N/A
19%
Page.Line
Jun-15
501,156,137
8.95%
44,852,283
Change
81,875,865
-0.32%
5,977,062
Percent
20%
-3%
15%
8
AMEREN MISSOURI JUNE 2015 CALCULATION
Net Revenue Requirement
Page.Line
1.1
1.6
Gross Revenue Requirement
Total Revenue Credits
1.6c
Total Prior Period Adjustment (with interest)
1.7
NET REVENUE REQUIREMENT
Jun-14
97,776,695
9,091,089
88,685,606
Jun-15
116,626,703
7,031,833
Change
18,850,008
-2,059,256
Percent
19%
-23%
-976,420
-976,420
N/A
108,618,450
19,932,843
22%
The Prior Period Adjustment relates to the FERC Audit Refund in Docket No. FA13-2-000
9
AMEREN MISSOURI JUNE 2015 CALCULATION
AMMO 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)
Jun-14
88,685,606
6,900,307
12.852
1.071
Jun-15
108,618,450
6,996,822
15.524
1.294
Change
19,932,843
96,515
2.672
0.223
Percent
22%
1%
21%
21%
10
AMEREN MISSOURI JUNE 2015 CALCULATION
Attachment GG Calculation - Page 1
(1)
Line
No.
(2)
Attachment O
Page, Line, Col.
Attach O, p 2, line 2 col 5 (Note A)
Attach O, p 2, line 14 and 23b col 5 (Note B)
(3)
(4)
Transmission
Allocator
1
2
Gross Transmission Plant - Total
Net Transmission Plant - Total
3
4
O&M EXPENSE
Total O&M Allocated to Transmission
Annual Allocation Factor for 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
Attach O, p 3, line 20 col 5
(line 7 divided by line 1 col 3)
9
Annual Allocation Factor for Expense
Sum of line 4, 6, and 8
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)
19,292,707
2.90%
2.90%
12
13
RETURN
Return on Rate Base
Annual Allocation Factor for Return on Rate Base
Attach O, p 3, line 28 col 5
(line 12 divided by line 2 col 3)
44,852,283
6.74%
6.74%
14
Annual Allocation Factor for Return
Attach O, p 3, line 8 col 5
(line 3 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)
Sum of line 11 and 13
954,634,166
665,462,357
30,366,139
3.18%
3.18%
839,936
0.09%
0.09%
9,399,479
0.98%
0.98%
4.25%
9.64%
11
AMEREN MISSOURI JUNE 2015 CALCULATION
Attachment GG Calculation - Page 2
(1)
Line
No.
Project Name
(2)
MTEP
Project
Number
(3)
(4)
Project Gross
Plant
Annual
Allocation
Factor for
Expense
(Note C)
(5)
Annual Expense
Charge
(Page 1 line 9) (Col. 3 * Col. 4)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
Project Net
Plant
Annual
Allocation
Factor for
Return
Annual Return
Charge
Project
Depreciation
Expense
Annual Revenue
Requirement
True-Up
Adjustment
Network
Upgrade Charge
(Note E)
(Sum Col. 5, 8 & 9)
(Note F)
Sum Col. 10 & 11
(Note G)
(Note D)
(Page 1 line 14) (Col. 6 * Col. 7)
1a
Big River-Rockwood 138 kV
152
$
15,537,893
4.25%
$660,907.37 $
14,866,278
9.64% $1,432,984.54
$237,192
$2,331,083.79 $
-
2,331,084
1b
Reconductor Sioux-Huster-1 and -3 138 kV
1240
$
15,620,832
4.25%
$664,435.20 $
14,680,724
9.64% $1,415,098.67
$336,452
$2,415,986.33 $
-
2,415,986
1c
1d
Gray Summit : 2nd 345/138 kV Transformer
Lutesville: Northwest Cape 345/161 kV sub and new lines
2061
2306
$
$
22,410,810
-
4.25%
4.25%
$953,248.26 $
$0.00 $
20,653,854
-
9.64% $1,990,858.25
9.64%
$0.00
$398,139
$0
$3,342,245.79 $
$0.00 $
-
3,342,246
0
2
Annual Totals
$8,089,316
3
Rev. Req. Adj For Attachment O
$8,089,316
$0
$8,089,316
12
2014 SIGNIFICANT TRANSMISSION PROJECTS
Transmission Lines
Project Name
Total Cost
Montgomery - Spencer Creek - Sub T
$63 Million
Mason - Labadie
$15 Million
Thomas Hill - Adair
$9 Million
Labadie - Montgomery
$9 Million
13
FUTURE SIGNIFICANT TRANSMISSION PROJECTS
Project Name
Total Cost
Cape Girardeau Electric
Reliability Project
(Northwest Cape Area
345/161 kV Substation)
$60 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
14
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
15
QUESTIONS?
Appendix
Supplemental Background Information
17
AMEREN MISSOURI TRANSMISSION
• 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.
18
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
19
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.
20
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
21
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
22
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 7% of load
• Ameren Missouri retail customers
– Do not pay AMMO Schedule 9 Rate
– Ameren Missouri transmission facilities & costs included in bundled
rates set by MoPSC
– Other transmission related costs also included in retail rate case
• 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
23