Ameren to Increase POR Discount Rate

Ameren has filed tariff revisions to modify its electric purchase of receivables discount rate due to an error in the prior calculation.

Specifically, Ameren filed to increase the POR discount to 1.29% effective November 1, 2013, from the current rate of 1.22%.

Ameren said that the discount rate is being updated to account for a correction to the "Fair Cost Allocation Adjustment" (FCAA) component of the calculation. The FCAA component adds to the Discount Rate as a means to apportion a slightly greater portion of UCB/POR start-up costs to Retail Electric Suppliers participating in the UCB/POR program. The FCAA is computed via a formula by dividing the expected UCB/POR Program Charge revenue by expected receivables under the UCB/POR program.

The FCAA applicable June 1, 2013 was calculated assuming a UCB/POR Program Charge equal to 3 cents; however, FCAA should have been calculated assuming a UCB/POR Program Charge equal to 5 cents. As a result, the Discount Rate will change from 1.22% to 1.29%, raising the FCAA contribution by 0.07%. The revised Discount Rate will become effective November 1, 2013 to allow for a 60 day notice as contemplated in the Supplier Terms and Conditions tariff governing the determination of the discount rate.