Business Context and Reporting Period
This Form 8-K was filed on January 23, 2015, by Ameren Corporation and its subsidiary, Ameren Illinois Company (AIC). The filing reports a regulatory event involving AIC's request to the Illinois Commerce Commission (ICC) for approval of increased natural gas delivery service rates.
Key Financial Metrics
The filing does not provide consolidated revenue, profit, cash flow, or debt figures for the reporting period. Specific financial parameters related to the rate request include:
- Requested Annual Rate Increase: $53 million
- Proposed Return on Equity: 10.25%
- Proposed Capital Structure: 50% equity
- Rate Base: $1.2 billion
- Test Year: Ended December 31, 2016
Material Changes
The primary material event is the initiation of a regulatory proceeding to increase natural gas delivery service rates. No historical financial comparisons or changes in operating metrics versus prior periods are disclosed in this document.
Outlook, Risks, and Contingencies
Regulatory Timeline: ICC proceedings are expected to last up to 11 months, with a decision required by December 2015. New rates, if approved, are expected to be effective in January 2016.
Risks and Uncertainties: AIC explicitly states it cannot predict the final level of any rate change approved by the ICC, the effective date, or whether the approved increase will be sufficient to recover costs and earn a reasonable return on investment.
Investor Verification Checklist
- Monitor the status of the ICC proceedings for the natural gas rate increase request.
- Verify the final approved rate increase amount against the requested $53 million annual increase.
- Confirm the actual effective date of any approved rate changes.
- Assess whether the final approved return on equity and rate base align with the company's cost recovery needs.