2014 Annual Attachment O Stakeholder Meeting Ameren Missouri

2014 Annual Attachment O Stakeholder Meeting Ameren Missouri

August 18,2014

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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

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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.

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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

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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.

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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?

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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

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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

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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 clearly-

structured 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

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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

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NEW PROTOCOL TIMELINE

DateAction

(Historical)June 1 Posting of annual update

Information exchange period begins. Review period begins.

September 1 Deadline for annual meeting

November 1 Deadline for joint meeting on regional cost-shared projects

December 1 Deadline for Interested Parties to submit information requests

January 10 Deadline for Transmission Owners to respond to information requests

January 31 Deadline for Interested Parties to submit Informal Challenges

February 28 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

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AMMO Revenue Requirement

June 2013 vs June 2014 Filings

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AMMO JUNE 2014 FILING

Rate Base

Page.Line Jun-13 Jun-14 Change Percent2.6 Total Gross Plant 776,445,309 843,566,308 67,120,999 9%

2.12 Total Accum Depreciation 269,340,644 282,535,080 13,194,436 5%2.18 TOTAL NET PLANT 507,104,666 561,031,228 53,926,563 11%

ADJUSTMENTS TO RATE BASE 2.20 Account No. 282 -131,790,859 -151,726,236 -19,935,377 15%2.21 Account No. 283 -8,122,036 -6,995,936 1,126,101 -14%2.22 Account No. 190 2,918,080 5,296,917 2,378,837 82%2.25 Land Held for Future Use 762,157 799,480 37,323 5%2.26 CWC 3,098,421 3,090,433 -7,988 0%2.27 Materials & Supplies 5,034,721 6,883,099 1,848,378 37%2.28 Prepayments 847,278 901,287 54,009 6%

TOTAL ADJUSTMENTS -127,252,239 -141,750,957 -14,498,717 11%

2.30 TOTAL RATE BASE 379,852,426 419,280,272 39,427,845 10%

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AMMO JUNE 2014 FILING

Expenses

Page.Line Jun-13 Jun-14 Change PercentO&M

3.1 Transmission 48,403,470 56,001,557 7,598,087 16%3.1a Less LSE Expenses 7,206,932 6,469,229 -737,703 -10%3.2 Less Account 565 22,683,675 30,809,160 8,125,485 36%3.3 A&G 6,135,752 5,704,062 -431,691 -7%3.4 Less FERC Annual Fees 0 0 0 N/A3.5 Less EPRI, ect. 559,298 445,447 -113,851 -20%3.5a Plus Trans. Reg. Comm. Exp 9,639 67,179 57,540 597%3.7 Transmission Lease Payments 688,410 674,502 -13,908 -2%3.8 TOTAL O&M 24,787,367 24,723,464 -63,903 0%

3.12 TOTAL DEPRECIATION 17,210,309 18,065,642 855,333 5%

TAXES3.13 Payroll 568,377 477,114 -91,263 -16%3.16 Property 7,105,907 7,898,117 792,211 11%3.18 Other 103,478 87,186 -16,291 -16%3.27 Income Taxes 14,594,551 16,529,798 1,935,246 13%

TOTAL TAXES 22,372,313 24,992,215 2,619,902 12%

TOTAL EXPENSES 64,369,990 67,781,322 3,411,332 5%

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AMMO JUNE 2014 FILING

Capital Structure

Capital Structure - 2013

Page.Line $ % Cost Weighted4.27 Long Term Debt 3,709,271,000 48% 0.0567 0.02714.28 Preferred Stock 80,759,500 1% 0.0424 0.00044.29 Common Stock 3,973,425,626 51% 0.1238 0.06344.30 Total 7,763,456,126 100% 0.0909

Capital Structure - 2014

Page.Line $ % Cost Weighted4.27 Long Term Debt 3,465,276,000 46% 0.0588 0.02734.28 Preferred Stock 80,759,500 1% 0.0424 0.00054.29 Common Stock 3,912,960,927 52% 0.1238 0.06494.30 Total 7,458,996,427 100% 0.0927

Change in Return 0.1846%

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AMMO JUNE 2014 FILING

Revenue Requirement

Page.Line Jun-13 Jun-14 Change Percent2.30 TOTAL RATE BASE 379,852,426 419,280,272 39,427,845 10%4.30 Rate of Return 9.09% 9.27% 0.18% 2%3.28 Return 34,518,214 38,875,220 4,357,006 13%

Total Expenses 64,369,990 67,781,322 3,411,332 5%3.29 TOTAL GROSS REV. REQ. 98,888,204 106,656,542 7,768,338 8%

3.30 Less ATT. GG Adjustment 9,037,581 8,879,847 -157,734 -2%3.30a Less ATT. MM Adjustment 0 0 0 N/A3.31 GROSS REV. REQ. UNDER ATT. O 89,850,623 97,776,695 7,926,072 9%

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AMMO JUNE 2014 FILING

Net Revenue Requirement

Page.Line Jun-13 Jun-14 Change Percent1.1 Gross Revenue Requirement 89,850,623 97,776,695 7,926,072 9%1.6 Total Revenue Credits 8,417,404 9,091,089 673,685 8%

1.7 NET REVENUE REQUIREMENT 81,433,219 88,685,606 7,252,387 9%

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AMMO JUNE 2014 FILING

Schedule 9 Rate Calculation

Page.Line 2013 2014 Change Percent1.7 Net Revenue Requirement 81,433,219 88,685,606 7,252,387 9%

1.15 Ameren Missouri Divisor 6,847,897 6,900,307 52,410 1%. Annual Cost ($/kW/Yr) 11.892 12.852 0.961 8%. Network & P-to-P Rate ($/kW/Mo) 0.991 1.071 0.080 8%

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AMMO JUNE 2014 FILING

Attachment GG Calculation - Page 1

(1) (2) (3) (4)Attachment O

Line Page, Line, Col. Transmission AllocatorNo.

1 Gross Transmission Plant - TotalAttach O, p 2, line 2 col 5 (Note

A) 829,297,144

2 Net Transmission Plant - TotalAttach O, p 2, line 14 and 23b

col 5 (Note B) 553,300,739

O&M EXPENSE

3 Total O&M Allocated to Transmission Attach O, p 3, line 8 col 5 24,723,464

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 ExpenseAttach 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 8,462,417

8 Annual Allocation Factor for Other Taxes (line 7 divided by line 1 col 3) 1.02% 1.02%

9 Annual Allocation Factor for Expense Sum of line 4, 6, and 8 4.08%

INCOME TAXES

10 Total Income Taxes Attach O, p 3, line 27 col 5 16,529,798

11 Annual Allocation Factor for Income Taxes (line 10 divided by line 2 col 3) 2.99% 2.99%

RETURN

12 Return on Rate Base Attach O, p 3, line 28 col 5 38,875,220

13 Annual Allocation Factor for Return on Rate Base (line 12 divided by line 2 col 3) 7.03% 7.03%

14 Annual Allocation Factor for Return Sum of line 11 and 13 10.01%

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AMMO JUNE 2014 FILING

Attachment GG Calculation - Page 2

(1) (2) (3) (4) (5) (6) (7) (8)

Line No.   Project Name

MTEP Project Number

Project Gross Plant

Annual Allocation Factor for Expense

Annual Expense Charge

Project Net Plant

Annual Allocation Factor for

Return

Annual Return Charge

        (Note C) (Page 1 line 9) (Col. 3 * Col. 4) (Note D) (Page 1 line 14) (Col. 6 * Col. 7)     

1a Big River-Rockwood 138 kV 152 $ 19,927,624 4.08% $812,302.53

$ 19,228,224 10.01%

$1,925,426.82

1b Reconductor Sioux-Huster-1 and -3 138 kV 1240 $ 15,481,687 4.08% $631,074.43

$ 14,782,578 10.01%

$1,480,260.12

1c   Gray Summit : 2nd 345/138 kV Transformer 2061 $ 22,610,367 4.08% $921,658.23

$ 21,204,346 10.01%

$2,123,306.73

(1) (2) (9) (10) (11) (12)

Line No.   Project Name

MTEP Project Number

Project Depreciation

ExpenseAnnual Revenue

RequirementTrue-Up

Adjustment

Network Upgrade Charge

        (Note E) (Sum Col. 5, 8 & 9) (Note F)

Sum Col. 10 & 11

(Note G)     

1a Big River-Rockwood 138 kV 152 $293,785 $3,031,514.04 $ - 3,031,514

1b Reconductor Sioux-Huster-1 and -3 138 kV 1240 $284,683 $2,396,017.40 $ - 2,396,017

1c   Gray Summit : 2nd 345/138 kV Transformer 2061 $407,350 $3,452,315.33 $ - 3,452,315

2 Annual Totals $8,879,847 $0 $8,879,847

3 Rev. Req. Adj For Attachment O $8,879,847

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AMEREN MISSOURI

Significant Line Expansion Projects Not in ServiceProject Name Total Cost ISD MTEP MISO ID# MTEP Description

Cape Girardeau Electric Reliability Project (Northwest Cape Area 345/161 kV Substation)

$50 M 2016 MTEP11 2306 Install 560 MVA, 345/161 kV Transformer. Provide 345 kV supply from 11 mile 345 kV line extension from Lutesville Substation

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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

QUESTIONS?