Business Context and Reporting Period
This Form 8-K is a current report filed by Ameren Corporation and its subsidiary, Ameren Illinois Company, on January 10, 2012. The filing addresses a regulatory event concerning Ameren Illinois's natural gas delivery services.
Key Financial Metrics
The filing does not provide consolidated revenue, profit, cash flow, or debt metrics for the reporting period. It specifically details the following regulatory financial parameters:
- Approved Revenue Increase: $32 million annually for natural gas delivery services.
- Return on Equity: 9.06%.
- Capital Structure: 53.3% common equity.
- Rate Base: Approximately $1 billion.
- Test Year: 2012.
Material Changes
On January 10, 2012, the Illinois Commerce Commission (ICC) issued a rate order approving the $32 million annual revenue increase for Ameren Illinois. This order is based on a revised request originally filed in February 2011. The rate changes are scheduled to become effective on January 20, 2012.
Outlook, Risks, and Contingencies
Ameren Illinois is currently evaluating the ICC's order. The company may seek a rehearing or appeal aspects of the order. Similarly, intervenor parties may also seek rehearing or appeal. The filing explicitly states that Ameren Illinois cannot predict the outcome of any such applications for rehearing or appeal, representing a material contingency regarding the finality of the approved revenue increase.
Investor Verification Checklist
- Confirm the effective date of the rate changes (January 20, 2012).
- Monitor for any filings regarding rehearing requests or appeals by Ameren Illinois or intervenor parties.
- Review the Form 10-Q for the period ended September 30, 2011, for broader context on the "Overview and Outlook" referenced in this filing.
- Verify the impact of the $32 million revenue increase on future earnings per share once the rate order becomes final.