PSC approves adjusted charge for Ameren customers

The Missouri Public Service Commission has approved a filing made by Ameren Missouri to adjust the fuel and purchased power adjustment charge (FAC) on the bills of its electric customers.

For a residential customer using 1,000 kWh (kilowatt-hours) of electricity a month, the FAC will change from approximately $3.08 a month to approximately $4.14 a month, an increase of approximately $1.06 a month. The change is expected to take effect Oct. 1.

PSC officials said the FAC tariff allows the company to pass increases or decreases in its net fuel and purchased power costs to customers outside of a general rate case.

The FAC allows the company to recover most up to 95 percent of its costs, but not all, to encourage conservation and prudence in fuel use by the company, PSC officials added. Any charges resulting from the fuel adjustment clause must appear in a separate category on customers' bills.

Fuel adjustment charges are intended to help companies deal with volatility in fuel pricing. The FAC tariff requires regular adjustments to reflect changes in prices the company has incurred for fuel and for wholesale power purchased to serve customers.