2015 Annual Attachment O Stakeholder Meeting Ameren Missouri

July 15, 2015

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AGENDA

Primary purpose is to review AMMO Pricing Zone Historical 2014 Transmission Rate Calculations which became effective June 1, 2015

• Protocol Timeline• Comparison to Previous Revenue Requirement• 2014 AMMO Pricing Zone NITS Charge

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PROTOCOL TIMELINE

DateAction

(Historical)June 1 Posting of annual update

Information exchange period begins. Review period begins.

September 1 Deadline for annual meeting

November 1 Deadline for joint meeting on regional cost-shared projects

December 1 Deadline for Interested Parties to submit information requests

January 10 Deadline for Transmission Owners to respond to information requests

January 31 Deadline for Interested Parties to submit Informal Challenges

February 28 Deadline for Transmission Owners to respond to Informal Challenges Any rate changes agreed to by the Transmission Owner will be included in

the Information Filing and will be reflected in the Annual Update for the following Rate Year.

March 15 Transmission Owners submit informational filing to the Commission.

March 31 Deadline for Interested Parties to file Formal Challenge at the Commission

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Ameren Missouri

Revenue Requirement

June 2014 vs June 2015 Calculation

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AMEREN MISSOURI JUNE 2015 CALCULATION

Rate Base

Page.Line Jun-14 Jun-15 Change Percent2.6 Total Gross Plant 843,566,308 973,505,027 129,938,719 15%

2.12 Total Accum Depreciation 282,535,080 297,149,632 14,614,552 5%2.18 TOTAL NET PLANT 561,031,228 676,355,395 115,324,166 21%

ADJUSTMENTS TO RATE BASE 2.20 Account No. 282 -151,726,236 -186,057,383 -34,331,147 23%2.21 Account No. 283 -6,995,936 -10,290,367 -3,294,432 47%2.22 Account No. 190 5,296,917 8,195,106 2,898,189 55%2.25 Land Held for Future Use 799,480 3,334,568 2,535,088 317%2.26 CWC 3,090,433 3,795,767 705,334 23%2.27 Materials & Supplies 6,883,099 4,625,788 -2,257,311 -33%2.28 Prepayments 901,287 1,197,264 295,977 33%

TOTAL ADJUSTMENTS -141,750,957 -175,199,258 -33,448,301 24%

2.30 TOTAL RATE BASE 419,280,272 501,156,137 81,875,865 20%

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AMEREN MISSOURI JUNE 2015 CALCULATION

Expenses

Page.Line Jun-14 Jun-15 Change PercentO&M

3.1 Transmission 56,001,557 57,433,561 1,432,004 3%3.1a Less LSE Expenses 6,469,229 6,344,330 -124,899 -2%3.2 Less Account 565 30,809,160 28,061,521 -2,747,639 -9%3.3 A&G 5,704,062 6,903,236 1,199,175 21%3.4 Less FERC Annual Fees 0 0 0 N/A3.5 Less EPRI, ect. 445,447 543,536 98,089 22%3.5a Plus Trans. Reg. Comm. Exp 67,179 170,481 103,302 154%3.7 Transmission Lease Payments 674,502 808,248 133,746 20%3.8 TOTAL O&M 24,723,464 30,366,139 5,642,675 23%

3.12 TOTAL DEPRECIATION 18,065,642 20,805,412 2,739,770 15%

TAXES3.13 Payroll 477,114 524,054 46,940 10%3.16 Property 7,898,117 8,806,314 908,197 11%3.18 Other 87,186 69,111 -18,076 -21%3.27 Income Taxes 16,529,798 19,292,707 2,762,909 17%

TOTAL TAXES 24,992,215 28,692,186 3,699,971 15%

TOTAL EXPENSES 67,781,322 79,863,737 12,082,415 18%

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AMEREN MISSOURI JUNE 2015 CALCULATION

Capital StructureCapital Structure - 2014

Page.Line $ % Cost Weighted4.27 Long Term Debt 3,465,276,000 46% 0.0588 0.02734.28 Preferred Stock 80,759,500 1% 0.0424 0.00054.29 Common Stock 3,912,960,927 52% 0.1238 0.06494.3 Total 7,458,996,427 100% 0.0927

Capital Structure - 2015

Page.Line $ % Cost Weighted4.27 Long Term Debt 3,711,276,000 48% 0.0538 0.02574.28 Preferred Stock 80,759,500 1% 0.0424 0.00044.29 Common Stock 3,971,807,203 51% 0.1238 0.06334.3 Total 7,763,842,703 100% 0.0895

Change in Return -0.3221%

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AMEREN MISSOURI JUNE 2015 CALCULATION

Revenue Requirement

Page.Line Jun-14 Jun-15 Change Percent2.30 TOTAL RATE BASE 419,280,272 501,156,137 81,875,865 20%4.30 Rate of Return on ACS 9.27% 8.95% -0.32% -3%3.28 Return from ACS 38,875,220 44,852,283 5,977,062 15%

Total Expenses 67,781,322 79,863,737 12,082,415 18%3.29 TOTAL GROSS REV. REQ. 106,656,542 124,716,019 18,059,477 17%

3.30 Less ATT. GG Adjustment 8,879,847 8,089,316 -790,531 -9%3.30a Less ATT. MM Adjustment 0 0 0 N/A3.31 GROSS REV. REQ. UNDER ATT. O 97,776,695 116,626,703 18,850,008 19%

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AMEREN MISSOURI JUNE 2015 CALCULATION

Net Revenue Requirement

The Prior Period Adjustment relates to the FERC Audit Refund in Docket No. FA13-2-000

Page.Line Jun-14 Jun-15 Change Percent1.1 Gross Revenue Requirement 97,776,695 116,626,703 18,850,008 19%1.6 Total Revenue Credits 9,091,089 7,031,833 -2,059,256 -23%

1.6c Total Prior Period Adjustment (with interest) -976,420 -976,420 N/A

1.7 NET REVENUE REQUIREMENT 88,685,606 108,618,450 19,932,843 22%

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AMEREN MISSOURI JUNE 2015 CALCULATION

AMMO Schedule 9 Rate Calculation

Page.Line Jun-14 Jun-15 Change Percent1.7 Net Revenue Requirement 88,685,606 108,618,450 19,932,843 22%

1.15 Ameren Missouri Divisor 6,900,307 6,996,822 96,515 1%Annual Cost ($/kW/Yr) 12.852 15.524 2.672 21%Network & P-to-P Rate ($/kW/Mo) 1.071 1.294 0.223 21%

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AMEREN MISSOURI JUNE 2015 CALCULATION

Attachment GG Calculation - Page 1

(1) (2) (3) (4)Attachment O

Line Page, Line, Col. Transmission AllocatorNo.

1 Gross Transmission Plant - Total Attach O, p 2, line 2 col 5 (Note A) 954,634,1662 Net Transmission Plant - Total Attach O, p 2, line 14 and 23b col 5 (Note B) 665,462,357

O&M EXPENSE3 Total O&M Allocated to Transmission Attach O, p 3, line 8 col 5 30,366,1394 Annual Allocation Factor for O&M (line 3 divided by line 1 col 3) 3.18% 3.18%

GENERAL AND COMMON (G&C) DEPRECIATION EXPENSE5 Total G&C Depreciation Expense Attach O, p 3, lines 10 & 11, col 5 (Note H) 839,9366 Annual Allocation Factor for G&C Depreciation Expense (line 5 divided by line 1 col 3) 0.09% 0.09%

TAXES OTHER THAN INCOME TAXES7 Total Other Taxes Attach O, p 3, line 20 col 5 9,399,4798 Annual Allocation Factor for Other Taxes (line 7 divided by line 1 col 3) 0.98% 0.98%

9 Annual Allocation Factor for Expense Sum of line 4, 6, and 8 4.25%

INCOME TAXES10 Total Income Taxes Attach O, p 3, line 27 col 5 19,292,70711 Annual Allocation Factor for Income Taxes (line 10 divided by line 2 col 3) 2.90% 2.90%

RETURN 12 Return on Rate Base Attach O, p 3, line 28 col 5 44,852,28313 Annual Allocation Factor for Return on Rate Base (line 12 divided by line 2 col 3) 6.74% 6.74%

14 Annual Allocation Factor for Return Sum of line 11 and 13 9.64%

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AMEREN MISSOURI JUNE 2015 CALCULATION

Attachment GG Calculation - Page 2

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)

Line No.   Project Name

MTEP Project Number

Project Gross Plant

Annual Allocation Factor for Expense

Annual Expense Charge

Project Net Plant

Annual Allocation Factor for

Return

Annual Return Charge

Project Depreciation

ExpenseAnnual Revenue

RequirementTrue-Up

AdjustmentNetwork

Upgrade Charge

        (Note C) (Page 1 line 9) (Col. 3 * Col. 4) (Note D) (Page 1 line 14) (Col. 6 * Col. 7) (Note E) (Sum Col. 5, 8 & 9) (Note F)Sum Col. 10 & 11

(Note G)

         

1a Big River-Rockwood 138 kV 152 $ 15,537,893 4.25% $660,907.37

$ 14,866,278 9.64%

$1,432,984.54 $237,192 $2,331,083.79 $ - 2,331,084

1b Reconductor Sioux-Huster-1 and -3 138 kV 1240 $ 15,620,832 4.25% $664,435.20

$ 14,680,724 9.64%

$1,415,098.67 $336,452 $2,415,986.33 $ - 2,415,986

1c Gray Summit : 2nd 345/138 kV Transformer 2061 $ 22,410,810 4.25% $953,248.26

$ 20,653,854 9.64%

$1,990,858.25 $398,139 $3,342,245.79

$ - 3,342,246

1dLutesville: Northwest Cape 345/161 kV sub and new lines 2306

$ - 4.25% $0.00

$ - 9.64% $0.00 $0 $0.00

$ - 0

         

         

                           

2 Annual Totals $8,089,316 $0 $8,089,316

3 Rev. Req. Adj For Attachment O $8,089,316

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2014 SIGNIFICANT TRANSMISSION PROJECTS

Transmission Lines

Project Name Total Cost

Montgomery - Spencer Creek - Sub T $63 Million

Mason - Labadie $15 Million

Thomas Hill - Adair $9 Million

Labadie - Montgomery $9 Million

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FUTURE SIGNIFICANT TRANSMISSION PROJECTS

Project Name Total Cost ISD MTEP MISO ID# MTEP Description

Cape Girardeau Electric Reliability Project (Northwest Cape Area 345/161 kV Substation)

$60 M 2016 MTEP11 2306 Install 560 MVA, 345/161 kV Transformer. Provide 345 kV supply from 11 mile 345 kV line extension from Lutesville Substation

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MISO WEB LINKS

• Transmission Pricing - Attachments O, GG & MM Information• https://www.misoenergy.org/MarketsOperations/TransmissionSettlement

s/Pages/TransmissionPricing.aspx

• Ameren OASIS• http://www.oasis.oati.com/AMRN/index.html

• MTEP 14• https://www.misoenergy.org/Planning/TransmissionExpansionPlanning/

Pages/MTEP14.aspx

• MTEP 15• https://www.misoenergy.org/Planning/TransmissionExpansionPlanning/

Pages/MTEP15.aspx

• Schedule 26 & 26-A Indicative Charges • https://www.misoenergy.org/Planning/TransmissionExpansionPlanning/

Pages/MTEPStudies.aspx

QUESTIONS?

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Appendix

Supplemental Background Information

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AMEREN MISSOURI TRANSMISSION

• Ameren Missouri is a transmission-owning subsidiary of Ameren

Corporation, as well as a MISO Transmission Owner (TO)• Ameren Illinois and Ameren Transmission Company of Illinois (ATXI)

are two other Ameren subsidiaries that are MISO TOs.• ATXI was formed to build and own new regional transmission

projects such as the MISO Multi-Value Projects• Ameren Missouri will continue to build and own traditional reliability

projects needed to meet local needs and continue to maintain its existing transmission system

• Ameren Missouri is currently building a new local reliability project in Southeast Missouri.

• Ameren Missouri is the only MISO Transmission Owner in the AMMO pricing zone.

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MISO ATTACHMENTS O & GG

Calculate rates for Schedules 9, 26 & 26-A• Attachment GG - Schedule 26• Attachment MM – Schedule 26-A• Attachment O - net revenue requirement billed under Schedule 9• Schedules 26 and 26-A are billed by MISO• Schedule 9 is billed by Ameren

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MISO ATTACHMENT GG

• Cost Recovery for certain Network Upgrades• Eligible projects

• Market Efficiency• Generator Interconnections

• Cost shared based upon project type• MISO-wide based on load• Subregional based on LODF (Line Outage Distribution Factor)

• Ameren Missouri has three Attachment GG projects completed• One additional project under construction

• These projects were approved by MISO under prior Tariff provisions which allowed limited cost sharing for certain reliability projects

• Attachment MM is very similar to Attachment GG• Applies to MISO Multi-Value Projects, but is not applicable to Ameren

Missouri since it is not building or developing any MVPs.

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MISO ATTACHMENT O & GG

• All transmission costs included in Attachment O calculation • Schedule 9 based on net revenue requirement – reductions for:

• Any costs recovered in Schedules 26 & 26-A• Revenue Credits

• Point-to-Point revenue in Schedules 7 & 8• Rental revenue• Revenue from generator interconnections

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MISO TRANSMISSION EXPANSION PLAN (MTEP)

• Developed on an annual basis building upon previous analysis• MISO, Transmission Owners & Stakeholders• Includes subregional planning meetings

• MTEP goals• Ensure the reliability of the transmission system• Ensure compliance with NERC Standards• Provide economic benefits, such as increased market efficiency• Facilitate public policy objectives, such as meeting Renewable Portfolio

Standards• Address other issues or goals identified through the stakeholder process

• Multiple future scenarios analyzed• End result – comprehensive, cohesive plan for MISO footprint

• MTEP approved by MISO Board of Directors

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AMMO RATE INPUTS

• Rates calculated using prior year FERC Form 1 data (historical calculation)

• Rate base items based on Dec 31 ending balances• Only wholesale customers pay the Schedule 9 Rate in AMMO

– About 7% of load

• Ameren Missouri retail customers– Do not pay AMMO Schedule 9 Rate– Ameren Missouri transmission facilities & costs included in bundled

rates set by MoPSC– Other transmission related costs also included in retail rate case

• Note that some Transmission Owners’ rate calculations are different– Rates are initially set based on projected data– Annual True-up calculation to reflect actual costs reported in Form 1