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Regulator's Staff: Utility's Methodology For Classifying Costs Between Default Service and Delivery Does Not Demonstrate Material Misallocation Which Would Warrant Further Action At This Time; Staff Offers Recommendations On Cost Information Collection
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Staff of the Illinois Commerce Commission said in a report that, "while
Ameren’s allocation methodology is not without limitations," the information reviewed by Staff and Ameren’s
practices, "do not demonstrate a clear or material misallocation of costs between supply
and delivery services that would warrant further Commission action at this time."
The report was an outgrowth of an electric rate case order
The Illinois Competitive Energy
Association and Retail Energy Supply Association had raised concerns about the potential misallocation of costs between supply and delivery at Ameren
Staff in the report said, "ICEA-RESA does not identify specific
cost categories that are improperly assigned between supply and delivery functions, nor
does it demonstrate that Ameren’s current methodology results in a measurable or
material misallocation of costs."
"Accordingly, Staff does not recommend that the
Commission initiate a separate proceeding to further evaluate cost classification," Staff said
Staff further said that any examination of cost allocation between supply and delivery is inherently tied to a distribution service revenue requirement, and is thus better addressed in a rate case
While Staff does not recommend immediate changes to Ameren’s allocation
methodology, Staff said that certain areas would benefit from "further evaluation" in a
future rate case or similar proceeding
Staff noted that Ameren has identified "limitations" associated with certain data for categorizing customer service calls, including calls which address multiple issues
Staff recommended that Ameren "consider" enhancements to its call center
data collection practices, including the development of categories to capture customer
interactions involving multiple issues or unclear classification.
"To the extent such
categories are developed, the Company should evaluate reasonable and supportable
methods for assigning those costs between supply and delivery functions, including
approaches that reflect the underlying mix of activities associated with those interactions,
such as customer mix or proportion of call types," Staff said
Staff stressed that Staff is not recommending
that Ameren immediately incorporate customer interaction data into Ameren's allocation
methodology.
Staff said that, in Ameren's next rate case or similar proceeding, Ameren should include:
• a detailed narrative explaining its customer interaction tracking
practices and the extent to which customer interaction data may be
relevant to the evaluation of customer-related cost allocation issues.
• a description of the customer interaction data currently collected by the
Company, including "reason for call" categories and identified limitations
associated with the data;
• a discussion of any planned enhancements or refinements to the
Company’s customer interaction tracking practices, including treatment
of calls involving multiple issues or unclear categorization;
• an evaluation of whether customer interaction data may reasonably
support future analysis of customer-related cost allocation
methodologies;
• where the Company determines refinements are appropriate, an
explanation of its proposed methodology, implementation approach, and
supporting rationale; and
• an explanation of the principal customer-related cost categories
supporting the Company's allocation methodology, including the basis
for assigning those functions to supply, delivery, or shared activities
where applicable.
Docket 25-0083
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August 10, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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