The Missouri Public Service Commission has approved a filing made by Ameren Missouri to reduce 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 decrease by approximately $1.35 a month, from a current rate of approximately $4.14 a month to an average of approximately $2.79 a month. The change will take effect Feb. 1.
The FAC tariff allows the company to pass increases or decreases in its net fuel and purchased power costs to customers outside of doing a general rate case with the PSC.
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. 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.