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The AmerenUE residential rate structure includes a flat monthly charge and an energy charge. The monthly charge covers the costs of making service available—meter reading, billing, and customer service, for example. The energy or usage charge goes up or down depending on how much electricity is used. (AmerenUE Rates)
  
The rate UE uses to assess your energy charges is referred to as a base rate. This type of rate covers UE’s basic infrastructure costs, including operation and maintenance of plants, transmission lines, substations and distribution infrastructure. The base rate also covers the cost of employee salaries and other general business expenses, including taxes, technology and billing tasks.

As a regulated utility in the state of Missouri, UE can only change base rates through a legal proceeding before the Missouri Public Service Commission (PSC) with input from a range of other parties who represent customer interests.

The Missouri PSC proceedings are outlined below. For more information, visit the PSC Web site.
 

 
 

Role of Regulators
The PSC is comprised of five commissioners. Before a regulated utility can change a rate, it must first file that request with the Missouri PSC.
  

 
 

Rate Case Schedule
When a utility files for a price increase with the Missouri PSC, the Commission sets a procedural schedule that includes hearing dates.
  
By law, the Commission has 11 months from the filing date to make a decision. Because most rate proposals are complex, the Commission suspends the proposed rates to allow for a thorough investigation (existing rates remain in effect during the suspension period).
  

 
 

PSC Staff Investigation
Prior to any hearings, the PSC staff will conduct an independent on-site investigation of the utility’s books and records. This allows the PSC staff to provide the Commission with a recommendation regarding the filing.
  
Other parties, such as consumer groups or industrial customers, may also submit recommendations to the Commission. Parties then meet in a pre-hearing conference to discuss the issues of the filing. This procedure may help parties reach agreements that can settle all or some of the issues of the filing.

The Commission must approve any proposed agreements to ensure that they are reasonable and in the public’s interest.
  

 
 

Hearings
Formal evidentiary hearings are held. Testimony is prepared, exhibits are marked and a court reporter records all proceedings and live testimony. The utility presents expert witnesses to testify and answer questions. Most cases include written testimony submitted by the utility, PSC staff, Public Counsel and any intervenors.
    
The Commission also holds local public hearings to give the public an opportunity to express their opinions.
    

 
 

Commissioners’ Review and Decision
After the hearings are completed, a transcript of the case is prepared, and briefs from other parties are filed. The Commissioners review the record in making their decision.
  
Through this regulatory process, the Commissioners have a duty to approve cases that allow the utility a reasonable opportunity to earn an allowed rate of return—enough money to meet reasonable expenses, pay interest on debts and provide a reasonable return to stockholders.

When a decision is made, the Commission announces it through a written report and order. That order is subject to appeal by any of the participants in the case, except the PSC staff.
  

 
     
     
     
     

   
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