JEFFERSON CITY, MO (KFVS) - 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.
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.
A typical residential customer currently pays an FAC of approximately $5.08 a month.
As a result of these two filings, the FAC will drop to approximately $2.10 a month.
The change is expected to take effect on January 27, 2016.
The fuel adjustment charge was authorized by the Commission for Ameren Missouri in a regular rate case in 2009.
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.
Any charges resulting from the fuel adjustment clause must appear in a separate category on customers' bills.
Ameren Missouri provides electric service to approximately 1.2 million electric customers in Missouri.