The Missouri Public Service Commission has approved a request from Ameren Missouri to increase the fuel adjustment charge (FAC) on the bills of its electric customers.
Ameren proposed to adjust the FAC to reflect changes in its fuel and purchased power costs, sales revenues and associated transportation costs experienced during the four month period of February through May.
For a residential customer using 1,000 kWh (kilowatt-hours) of electricity a month, the FAC will increase from 41 cents a month to approximately $2.70 a month. The change will 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 also allows the company to recover most -- up to 95 percent -- of its costs, but not all, to encourage conservation in fuel use by the company. Any charges resulting from the fuel adjustment clause must appear in a separate category on customers' bills.
PSC officials also said 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.