Ameren Corporation & Ameren Illinois Company - 8-K Summary
Business Context and Reporting Period
This Form 8-K was filed on January 25, 2013, by Ameren Corporation and its subsidiary, Ameren Illinois Company (AIC). The filing reports a specific regulatory event concerning AIC's natural gas delivery service rates.
Key Financial Metrics and Event Details
The filing does not report consolidated revenue, profit, cash flow, or debt metrics for the period. Instead, it details a specific rate increase request:
- Requested Increase: $50 million annually in natural gas delivery service rates.
- Proposed Return on Equity: 10.4 percent.
- Capital Structure: 51.82 percent equity.
- Rate Base: $1.063 billion.
- Test Year: Ended December 31, 2014.
Material Changes and Regulatory Proceedings
AIC filed a request with the Illinois Commerce Commission (ICC) on January 25, 2013. The proceedings are expected to last up to 11 months, with decisions required by December 2013. The filing explicitly states that AIC cannot predict the final approved rate change, the effective date, or whether the approved increase will be sufficient to recover costs and earn a reasonable return.
Outlook, Risks, and Contingencies
Management provided extensive forward-looking statements identifying factors that could cause actual results to differ from expectations. Key risks include:
- Regulatory, judicial, or legislative actions affecting ratemaking.
- Cost and availability of natural gas and market price volatility.
- Disruptions in capital markets affecting access to liquidity.
- Environmental regulations regarding greenhouse gases and emissions.
- Weather conditions impacting demand and operations.
- Cybersecurity attacks and acts of terrorism.
Investor Verification Checklist
- Verify the final outcome of the ICC proceedings scheduled for decision by December 2013.
- Confirm the actual approved rate increase amount versus the requested $50 million.
- Monitor the effective date of any approved rate changes.
- Assess whether the approved rates allow for full cost recovery and the targeted 10.4% return on equity.
- Review subsequent filings for updates on natural gas cost recovery mechanisms.