form8-k.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date of
report (Date of earliest event reported):
August
28, 2008
Commission File
Number
|
Exact
Name of Registrant as
Specified
in Charter;
State
of Incorporation;
Address and Telephone
Number
|
IRS
Employer
Identification
Number
|
|
(Missouri
Corporation)
1901
Chouteau Avenue
St.
Louis, Missouri 63103
(314)
621-3222
|
|
1-2967
|
Union
Electric Company
(Missouri
Corporation)
1901
Chouteau Avenue
St.
Louis, MO 63103
(314)
621-3222
|
43-0559760
|
1-3672
|
Central
Illinois Public Service Company
(Illinois
Corporation)
607
East Adams Street
Springfield,
Illinois 62739
(888)
789-2477
|
37-0211380
|
2-95569
|
CILCORP
Inc.
(Illinois
Corporation)
300
Liberty Street
Peoria,
Illinois 61602
(309)
677-5271
|
37-1169387
|
1-2732
|
Central
Illinois Light Company
(Illinois
Corporation)
300
Liberty Street
Peoria,
Illinois 61602
(309)
677-5271
|
37-0211050
|
1-3004
|
Illinois
Power Company
(Illinois
Corporation)
370
South Main Street
Decatur,
Illinois 62523
(217)
424-6600
|
37-0344645
|
[ ] Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
[ ] Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
ITEM
8.01 Other Events.
Reference
is made to Note 2 – Rate and Regulatory Matters to our financial statements
under Part I, Item 1, Financial Statements and Outlook under Part I, Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of
Operations, each in the Form 10-Q for the quarterly period ended June 30, 2008,
of registrant Ameren Corporation and its registrant subsidiaries, Union Electric
Company, doing business as AmerenUE (“UE”), Central Illinois Public Service
Company, doing business as AmerenCIPS (“CIPS”), CILCORP Inc. (“CILCORP”),
Central Illinois Light Company, doing business as AmerenCILCO (“CILCO”), and
Illinois Power Company, doing business as AmerenIP (“IP”), for a discussion of
CIPS’, CILCO’s and IP’s requests with the Illinois Commerce Commission (“ICC”)
for adjustments to their annual revenues for electric and natural gas delivery
services and UE’s pending request with the Missouri Public Service Commission
(“MoPSC”) for an increase in its annual revenues for electric
service.. CIPS, CILCO and IP are collectively referred to herein as
the “Ameren Illinois Utilities.”
Ameren Illinois Utilities
Electric and Natural Gas Delivery Service Rate Cases
As
previously reported, CIPS, CILCO and IP requested that the ICC approve an
increase in their annual revenues for electric delivery service by $156
million in the aggregate (CIPS – $26 million, CILCO – $3 million and
IP – $127 million) and an increase in their annual revenues for
natural gas delivery service by $51 million in the aggregate (CIPS –
$10 million increase, CILCO – $7 million decrease and IP –
$48 million increase), based on a return on equity of approximately
10.7%. The Ameren Illinois Utilities also requested ICC approval to
implement rate adjustment mechanisms for electric infrastructure investments and
the decoupling of natural gas revenues from sales volumes.
On
September 24, 2008, the ICC issued a consolidated order approving a net increase
in annual revenues for electric delivery service of approximately $123 million
in the aggregate (CIPS – $22 million increase, CILCO – $3 million
decrease and IP – $104 million increase) and a net increase in annual revenues
for natural gas delivery service of approximately $39 million in the aggregate
(CIPS – $8 million increase, CILCO – $9 million decrease and
IP – $40 million increase), based on a 10.65% return on equity with
respect to electric delivery service and 10.68% return on equity with respect to
natural gas delivery service. Based on IP’s original recommendation
to cap the residential bundled electric rate increase for the majority of
customers at no more than 10%, IP will not recover approximately $10 million in
revenue from that class in the first year delivery service rates are in effect;
thereafter residential electric delivery service rates will be adjusted to
recover the full increase. The ICC rejected, however, the Ameren
Illinois Utilities’ requested rate adjustment mechanisms for electric
infrastructure investments. As an alternative to the Ameren Illinois
Utilities’ requested decoupling of natural gas revenues from sales volumes, the
ICC order approved an increase in the percentage of costs to be recovered
through fixed non-volumetric residential and commercial customer charges to 80%
from 53%. These rate changes are expected to become effective on
October 1, 2008. CIPS, CILCO and IP are evaluating the ICC’s order
and may decide to ask for rehearing of any aspect of the ICC’s order or
subsequently appeal any aspect of the order. Moreover, any of the
intervenor parties to these rate cases may similarly seek rehearing or
subsequently appeal any aspect of the order. The Ameren Illinois
Utilities cannot predict the outcome of any such application for rehearing or
appeal.
UE Electric Service Rate
Case
UE filed
a request with the MoPSC in April 2008 to increase its annual revenues for
electric service by $251 million based on a 10.9% return on
equity. In the filing, UE has also requested that the MoPSC approve
implementation of a fuel and purchased power cost recovery
mechanism.
On August
28, 2008, the MoPSC staff filed a report and direct testimony with the MoPSC
recommending an increase in annual revenues for electric service for UE of $51
million based on a 9.5% return on equity. The MoPSC staff in their
report and direct testimony also opposed UE’s request to implement a fuel and
purchased power cost recovery mechanism. The Office of Public Counsel
and intervenors also filed testimony with the MoPSC in August 2008 opposing UE’s
April 2008 request.
The MoPSC
proceeding relating to UE’s proposed electric service rate changes will take
place over a period of up to 11 months, and a decision by the MoPSC in such
proceeding is required by March 2009. UE cannot predict the level of
any electric service rate change the MoPSC may approve, when any rate change may
go into effect, whether the fuel and purchased power cost recovery mechanism
will be approved, or whether any rate increase that may eventually be approved
will be sufficient for UE to recover its costs and earn a reasonable return on
its investments when the increase goes into effect.
- - - - -
- - - - - - - - - - - - - - -
This
combined Form 8-K is being filed separately by Ameren, UE, CIPS, CILCORP, CILCO
and IP. Information contained herein relating to any individual
registrant has been filed by such registrant on its own behalf. No
registrant makes any representation as to information relating to any other
registrant.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, each registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized. The signature for each undersigned company shall be
deemed to relate only to matters having reference to such company or its
subsidiaries.
|
AMEREN
CORPORATION
(Registrant)
|
|
/s/ Martin J. Lyons
|
|
Martin
J. Lyons
Senior
Vice President and Chief Accounting Officer
|
|
|
|
UNION
ELECTRIC COMPANY
(Registrant)
|
|
/s/ Martin J. Lyons
|
|
Martin
J. Lyons
Senior
Vice President and Chief Accounting Officer
|
|
|
|
CENTRAL
ILLINOIS PUBLIC SERVICE COMPANY
(Registrant)
|
|
/s/ Martin J. Lyons
|
|
Martin
J. Lyons
Senior
Vice President and Chief Accounting Officer
|
|
|
|
CILCORP
INC.
(Registrant)
|
|
/s/ Martin J. Lyons
|
|
Martin
J. Lyons
Senior
Vice President and Chief Accounting Officer
|
|
|
|
CENTRAL
ILLINOIS LIGHT COMPANY
(Registrant)
|
|
/s/ Martin J. Lyons
|
|
Martin
J. Lyons
Senior
Vice President and Chief Accounting Officer
|
|
|
|
ILLINOIS
POWER COMPANY
(Registrant)
|
|
/s/ Martin J. Lyons
|
|
Martin
J. Lyons
Senior
Vice President and Chief Accounting
Officer
|
Date: September
26, 2008