2016 Attachment O True-Up Stakeholder Meeting - PowerPoint Presentation

Slide1

2016 Attachment O True-Up Stakeholder Meeting

Ameren Transmission Company of Illinois

July

27, 2017

AgendaPurpose is to review ATXI 2016 Transmission Rate True-Up Calculations

Protocol TimelineROE Complaint Cases and Impact on True-up calculations2016 True Up CalculationTotal Revenue Requirement Comparison – Projected vs ActualSummary of Revenue Requirements at 12.38% and 10.82% ROE

Attachment O/Schedule 9 Weighted True-up

Attachment

MM/Schedule 26-A Weighted True-up

2016 MVP Spend

2016 Significant Projects Placed In Service

An separate meeting will held to review the 2018 Projected Transmission Rate calculations. Tentatively set for September 21,

2017.

Protocol timeline

Date

Schedule

(Forward-Looking Protocols)

June 1

Posting of

annual true-up for prior

year

September

1

Deadline for annual

t

rue-up meeting

September

1

Posting of

net projected revenue requirement for following year

October 15

Deadline for annual projected rate meeting

November 1

Deadline for joint meeting on regional cost-shared projects

March 15

Transmission Owners submit informational filing to the Commission

ROE complaintsMISO ROE Complaints1st Complaint (EL14-12)Covers November 12, 2013 through February 11, 2015FERC order received September 28, 2016; set the Base ROE at 10.32%

Applicable going forward until 2nd complaint order2nd Complaint (EL15-45)Covers February 12, 2015 through May 11, 2016Initial decision issued June 30, 2016; recommended Base ROE at 9.70%Additional refunds will be required upon receipt of Final Order

RTO

Adder (ER15-358)

FERC approved a 50 basis point adder for participation in an RTO

Effective January 6, 2015, applicable to complaint case refunds after that date and going forward (i.e., total ROE is now 10.82%)

ROE complaintsMISO ROEs for the 2016 True-Up12.38% ROE for January 1 – September 2710.82% ROE for September 28 – December 31

Refunds already provided for EL14-12Two phase processPhase 1 related to ROE impact on projected rates for forward looking TOs and annual updates for historical TOs. These were settled in February 2017.2013, 2014 & 2015 projected rates from 11/12/13 to 2/11/15Phase 2 related to the ROE impact on true-ups calculations for

forward looking

TOs. These were settled in June 2017.

2013

, 2014

&

2015

True-ups

included in 2015, 2016 and 2017 projected rates

Refunds for Schedules 7

, 8

, 26, 37, 38, 26A were completed by MISO

Refunds for Schedule 9 were

processed

by

Ameren

Schedule

9 Refund amounts and supporting documents are posted on

Ameren’s OASIS

ATXI 2016 ROE WeightingsSchedule 9 has been weighted based on the actual 2016 Load in the AMIL pricing zone

Schedule 26-A has been weighted on the monthly percentage of applicable withdrawals from the prior year consistent with the monthly allocation of the total MVP revenue requirementSeptember load and revenue split based on number of days (i.e., 27 days at 12.38% and 3 days at 10.82%)

ATXI Revenue Requirement ComparisonProjected 2016 vs Actual 2016

(Complete 2016 True-up calculations with ROE at 12.38 % and 10.32% are included in the posted file.)

Atxi 2016 Rate Base

Page.Line

2016 Proj

2016 Act

Change

Percent

2.6

Total Gross Plant

244,237,971

262,579,385

18,341,414

8%

2.12

Total Accum Depreciation

9,096,778

8,301,568

(795,211)

-9%

2.18

TOTAL NET PLANT

235,141,193

254,277,817

19,136,625

8%

2.18a

100% CWIP RECOVERY

684,234,021

690,164,995

5,930,974

1%

ADJUSTMENTS TO RATE BASE

2.20

Account No. 282

(39,044,786)

(89,023,692)

(49,978,906)

128%

2.21

Account No. 283

(3,708,928)

(2,415,951)

1,292,977

-35%

2.22

Account No. 190

28,380,390

31,112,986

2,732,596

10%

2.25

Land Held for Future Use

-

-

-

N/A

2.26

CWC

1,575,005

1,386,593

(188,411)

-12%

2.27

Materials & Supplies

-

-

-

N/A

2.28

Prepayments

392,795

377,426

(15,369)

-4%

TOTAL ADJUSTMENTS

(12,405,525)

(58,562,638)

(46,157,113)

372%

2.30

TOTAL RATE BASE

906,969,689

885,880,175

(21,089,514)

-2%

ATXI 2016 Expenses

Page.Line

2016 Proj

2016 Act

Change

Percent

O&M

3.1

Transmission

1,200,387

2,861,811

1,661,424

138%

3.1a

Less LSE Expenses

-

-

-

N/A

3.2

Less Account 565

- - - N/A3.3 A&G 11,399,650 8,230,935 (3,168,715)-28%3.4 Less FERC Annual Fees - - - N/A3.5 Less EPRI, ect. 51,164 26,233 (24,931)-49%3.5a Plus Trans. Reg. Comm. Exp 51,164 26,233 (24,931)-49%3.8TOTAL O&M 12,600,037 11,092,746 (1,507,291)-12%3.12TOTAL DEPRECIATION 5,736,352 5,386,753 (349,599)-6%TAXES3.13 Payroll - - - N/A3.16 Property 763,426 681,375 (82,051)-11%3.18 Other 500,000 516,357 16,357 3%3.27 Income Taxes @10.82% ROE 36,714,667 35,771,390 (943,276)-3%TOTAL TAXES 37,978,093 36,969,122 (1,008,970)-3%TOTAL EXPENSES 56,314,482 53,448,621 (2,865,860)-5%

Income Taxes based on 12.38% ROE were

$42,008,093

for projected and

$40,928,818

for actuals resulting in Total Expenses of

$61,607,909

for projected and $

58,606,049

for actuals.

Atxi 2016 capital structure

12.38% ROE

Actual Capital Structure - 2016 Projection

Hypothetical Capital Structure - 2016 Projection  Page.Line  $%CostWeightedActual Capital Structure Return8.6638%  4.27 Long Term Debt303,846,15444%3.9095%1.7152%Hypothetical Capital Structure Return8.6530%  4.28 Preferred Stock 00%0.0000%0.0000%Difference applied to Attachment MM-0.0109%  4.29 Common Stock388,732,96156%12.3800%6.9487%  4.3Total 692,579,115100%8.6638%    Actual Capital Structure - 2016 ActualHypothetical Capital Structure - 2016 Actual  Page.Line  $%CostWeighted

Actual Capital Structure Return

8.3565%

4.27

Long Term Debt

326,923,077

44%

3.1866%

1.3946%

Hypothetical Capital Structure Return

8.3349%

4.28

Preferred Stock

0

0%

0.0000%

0.0000%

Difference applied to Attachment MM

-0.0216%

4.29

Common Stock

420,079,280

56%

12.3800%

6.9619%

4.3

Total

747,002,357

100%

8.3565%

Change in Actual Return

-0.3073%

Change in Hypothetical Return

-0.3181%

10.82% ROE

Actual Capital Structure - 2016 Projection

Hypothetical Capital Structure - 2016 Projection

Page.Line

$

%

Cost

Weighted

Actual Capital Structure Return

7.7882%

4.27

Long Term Debt

303,846,154

44%

3.9095%

1.7152%

Hypothetical Capital Structure Return

7.7794%

4.28

Preferred Stock

0

0%

0.0000%

0.0000%

Difference applied to Attachment MM

-0.0089%

4.29

Common Stock

388,732,961

56%

10.8200%

6.0731%

4.3

Total

692,579,115

100%

7.7882%

Actual Capital Structure - 2016 Actual

Hypothetical Capital Structure - 2016 Actual

Page.Line

$

%

Cost

Weighted

Actual Capital Structure Return

7.4793%

4.27

Long Term Debt

326,923,077

44%

3.1866%

1.3946%

Hypothetical Capital Structure Return

7.4613%

4.28

Preferred Stock

0

0%

0.0000%

0.0000%

Difference applied to Attachment MM

-0.0180%

4.29

Common Stock

420,079,280

56%

10.8200%

6.0847%

4.3

Total

747,002,357

100%

7.4793%

Change in Actual Return

-0.3090%

Change in Hypothetical Return

-0.3181%

ATXI 2016 total revenue requirement

12.38% ROE

Page.Line

Projected

Actual

Change

Percent

2.30

TOTAL RATE BASE

906,969,689

885,880,175

(21,089,514)

-2%

4.30

Rate of Return on ACS

8.66%

8.36%

-0.31%

-4%

3.28

Return from ACS

78,578,452 74,028,860 (4,549,592)-6%2.30a100% CWIP RECOVERY 684,234,021 690,164,995 5,930,974 1%4.30eIncremental Rate of Return on HCS-0.01%-0.02%-0.01%99%3.28aIncremental Return from HCS (74,367) (149,320) (74,953)101%Total Return 78,504,085 73,879,540 (4,624,545)-6%Total Expenses 61,607,909 58,606,049 (3,001,860)-5%3.29TOTAL GROSS REV. REQ. 140,111,994 132,485,590 (7,626,404)-5%3.30Less ATT. GG Adjustment - - - N/A3.30aLess ATT. MM Adjustment 130,383,256 122,311,970 (8,071,286)-6%3.31GROSS REV. REQ. UNDER ATT. O 9,728,737 10,173,620 444,882 5%10.82% ROEPage.LineProjectedActualChangePercent2.30TOTAL RATE BASE 906,969,689 885,880,175 (21,089,514)-2%4.30Rate of Return on ACS7.79%7.48%-0.31%-4%3.28Return from ACS 70,637,010 66,257,288 (4,379,722)-6%

2.30a

100% CWIP RECOVERY

684,234,021

690,164,995

5,930,974

1%

4.30e

Incremental Rate of Return on HCS

-0.01%

-0.02%

-0.01%

103%

3.28a

Incremental Return from HCS

(60,671)

(123,982)

(63,311)

104%

Total Return

70,576,339

66,133,306

(4,443,033)

-6%

Total Expenses

56,314,482

53,448,621

(2,865,860)

-5%

3.29

TOTAL GROSS REV. REQ.

126,890,821

119,581,927

(7,308,894)

-6%

3.30

Less ATT. GG Adjustment

-

-

-

N/A

3.30a

Less ATT. MM Adjustment

117,855,536

110,071,470

(7,784,066)

-7%

3.31

GROSS REV. REQ. UNDER ATT. O

9,035,285

9,510,458

475,172

5%

Atxi 2016 Net Revenue Requirement For Schedule 9Prior year true-ups shown above represent the 2014 revised true-up at 10.32% ROE as a result of the Order in Docket EL14-12. The 2014 true –up at 12.38% ROE was originally included in 2016 rates.

12.38% ROE

Page.Line

Projected

Actual

Change

Percent

1.1

Gross Revenue Requirement

9,728,737

10,173,620

444,882

5%

1.6

Total Revenue Credits

990,564

908,498

(82,066)

-8%

1.6a

Historic Year Actual ATRR

10,018,898 10,018,898 - 0%1.6bProjected ATRR from Prior Year 9,793,999 9,793,999 - 0%1.6cPrior Year ATRR True-Up 224,899 224,899 - 0%1.6dPrior Year Divisor True-Up (222,920) (222,920) - 0%1.6eInterest on Prior Year True-Up 31,082 31,082 - 0%1.7NET REVENUE REQUIREMENT 8,771,234 9,298,182 526,948 6%10.82% ROEPage.LineProjectedActualChangePercent1.1Gross Revenue Requirement 9,035,285 9,510,458 475,172 5%Total Revenue Credits 990,564 908,498 (82,066)-8%1.6aHistoric Year Actual ATRR 10,018,898 10,018,898 - 0%1.6bProjected ATRR from Prior Year 9,793,999 9,793,999 - 0%1.6cPrior Year ATRR True-Up 224,899 224,899 - 0%1.6dPrior Year Divisor True-Up (222,920) (222,920) - 0%

1.6e

Interest on Prior Year True-Up

31,082

31,082

-

0%

1.7

NET REVENUE REQUIREMENT

8,077,782

8,635,020

557,239

7%

Attachment O & MM Revenue Requirement Summary Prior year true-ups shown above represent the 2014 revised true-up at 10.32% ROE as a result of the Order in Docket EL14-12. The 2014 true –up at 12.38% ROE was originally included in 2016 rates.

12.38% ROE

Projected

Actual

Change

Percent

Total Revenue Requirement

140,111,994

132,485,590

-7,626,404

-5.4%

Less Attachment MM Rev Req

130,383,256

122,311,970

-8,071,286

-6.2%

Gross Attachment O Rev Req

9,728,737

10,173,620

444,882

4.6%

Less Revenue Credits990,564908,498-82,066-8.3%Plus Total Prior Year True-up33,06133,06100.0%Net Attachment O Rev Req8,771,2349,298,182526,9486.0%10.82% ROEProjectedActualChangePercentTotal Revenue Requirement126,890,821119,581,927-7,308,894-5.8%Less Attachment MM Rev Req117,855,536110,071,470-7,784,066-6.6%Gross Attachment O Rev Req9,035,2859,510,458475,1725.3%Less Revenue Credits990,564908,498-82,066-8.3%Plus Total Prior Year True-up33,06133,06100.0%Net Attachment O Rev Req8,077,7828,635,020557,2396.9%Shaded cells used in True-up calculations 

ATXI 2016 attachment o true up for Schedule 9

Attachment O 2016 True-up calculation (Schedule 9)

2016 Rev Req at

2016 Rev Req at

2016 Weighted

Calculation of 2016 Weighted Attachment O Rev Req

12.38%

10.82%

Rev Req

Net Actual 2016 Rev Req (Actual Attach O, Pg 1, Line 7)

$9,298,182

$8,635,020

Percent of Actual Revenue Requirement at ROE

76.48%

23.52%

Weighted Net Actual 2016 Rev Requirement$7,111,250$2,030,957$9,142,207  Net Projected 2016 Rev Req (Projected Attach O, Pg 1, Line 7)1$8,771,234$8,077,782 Percent of Projected Revenue at ROE76.48%23.52% Weighted Net Projected 2016 Rev Requirement$6,708,240$1,899,894$8,608,134  Under/(Over) Collection of 2016 Weighted Net Rev Req 403,010 131,063 534,073   Historic Year Actual Divisor for Transmission Owner (AIC Attach O, Pg 1, Line 15) 6,995,394 Proj'd Yr Divisor for Transmission Owner (AIC Projected Attach O, Pg 1, Line 15) 7,118,197 Difference between Historic & Projected Yr Divisor 122,804   Prior Year Projected Annual Cost ($ per kw per yr)$1.2322$1.1348 Percent of Revenue Received at ROE76.48%23.52% Weighted Prior Yr projected Annual Cost ($ per kw per year)$0.9424$0.2669$1.2093  Under/(Over) Collection of 2016 Divisor True-up  $148,507    

Total Under/(Over) Recovery

682,580

Monthly Interest Rate (Over collection = FERC rate, Under collection = company rate)

0.0561%

Interest For 24 Months

$9,190

Total 2016 Attachment O True-up Under/(Over) Recovery (To be included in Projected 2018)

$ 691,770

ATXI 2016 attachment MM true-up for Schedule 26-A

ATXI 2016 attachment MM true-up for Schedule 26-AATXI 2016 Weighted Attachment MM True Up by Project

2016 Attachment MM True-Up Adjustment -

Weighted

To be completed after the Attachment MM using actual data is completed for the True-Up Year

           Company Name: ATXI       True-Up Year: 2016        (a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)     Actual      ProjectedAttachment MMActualTrue-UpApplicableTrue-Up  MTEPActualAnnualRevenuesAnnualAdjustmentInterestAdjustmentTotalLineProjectProjectAttachment MMRevenueAllocatedRevenuePrincipalRate onInterestTrue-UpNo.NameNumberRevenuesRequirement 1to Projects 1Requirement 1Under/(Over)

Under/(Over)

Under/(Over)

Adjustment

Projected

[Col. (d), line 1

Actual

Attachment MM

x (Col. (e), line 2x /

Attachment MM

Col. (h) x Col. (i)

p 2 of 2, Col. 14

2

Col. (e), line 3)]

2

p 2 of 2, Col. 14

2

Col. (g) - Col. (f)

Line 5

x 24 months

2

Col. (h) + Col. (j)

1

Actual Attachment MM revenues for True-Up Year

1

$ 118,545,497

1a

Pana-Sugar Creek - CWIP

2237

$ 18,739,217

$ 17,421,338

$ 15,031,901

$ (2,389,437)

0.056%

$ (32,171)

$ (2,421,608)

1b

Pana-Sugar Creek - Plant in Service - No HCS

2237

$ 6,598,547

$ 6,134,489

$ 8,284,965

$ 2,150,476

0.056%

$ 28,954

$ 2,179,430

1c

Pana-Sugar Creek - Land - No HCS

2237

$ 647,187

$ 601,672

$ 585,097

$ (16,575)

0.056%

$ (223)

$ (16,798)

1d

Sidney-Rising - CWIP

2239

$ 7,357,601

$ 6,840,161

$ 5,320,101

$ (1,520,060)

0.056%

$ (20,466)

$ (1,540,526)

1e

Sidney-Rising - Plant in Service - No HCS

2239

$ 3,765,799

$ 3,500,960

$ 5,063,211

$ 1,562,251

0.056%

$ 21,034

$ 1,583,285

1f

Sidney-Rising - Land - No HCS

2239

$ 183,954

$ 171,017

$ 167,243

$ (3,774)

0.056%

$ (51)

$ (3,825)

1g

Adair-Ottumwa - CWIP

2248

$ 607,000

$ 564,311

$ 414,322

$ (149,989)

0.056%

$ (2,019)

$ (152,008)

1h

Adair-Ottumwa - Plant in Service - No HCS

2248

$ -

$ -

$ -

$ -

0.056%

$ -

$ -

1i

Adair-Ottumwa - Land - No HCS

2248

$ 93,865

$ 87,264

$ 85,344

$ (1,920)

0.056%

$ (26)

$ (1,946)

1j

Palmyra-Pawnee - CWIP

3017

$ 52,940,322

$ 49,217,171

$ 53,842,364

$ 4,625,193

0.056%

$ 62,274

$ 4,687,467

1k

Palmyra-Pawnee - Plant in Service - No HCS

3017

$ 14,363,412

$ 13,353,272

$ 9,881,934

$ (3,471,338)

0.056%

$ (46,738)

$ (3,518,076)

1l

Palmyra-Pawnee - Land - No HCS

3017

$ 1,168,662

$ 1,086,473

$ 1,144,888

$ 58,415

0.056%

$ 786

$ 59,201

1m

Fargo-Galesburg-Oak Grove - CWIP

3022

$ 6,097,868

$ 5,669,021

$ 4,937,941

$ (731,080)

0.056%

$ (9,843)

$ (740,923)

1n

Fargo-Galesburg-Oak Grove - Plant in Service - No HCS

3022

$ 844,203

$ 784,832

$ 1,117,750

$ 332,918

0.056%

$ 4,482

$ 337,400

1o

Fargo-Galesburg-Oak Grove - Land - No HCS

3022

$ 485,892

$ 451,721

$ 440,852

$ (10,869)

0.056%

$ (146)

$ (11,015)

1p

Pawnee-Pana - CWIP

3169

$ 7,536,882

$ 7,006,833

$ 6,614,602

$ (392,231)

0.056%

$ (5,281)

$ (397,512)

1q

Pawnee-Pana - Plant in Service - No HCS

3169

$ 486,482

$ 452,269

$ 1,418,901

$ 966,632

0.056%

$ 13,015

$ 979,647

1r

Pawnee-Pana - Land - No HCS

3169

$ 556,817

$ 517,658

$ 430,130

$ (87,528)

0.056%

$ (1,178)

$ (88,706)

1s

Adair-Palmyra - CWIP

3170

$ 4,531,940

$ 4,213,221

$ 3,463,383

$ (749,838)

0.056%

$ (10,096)

$ (759,934)

1t

Adair-Palmyra - Plant in Service - No HCS

3170

$ 397,433

$ 369,483

$ 1,162,663

$ 793,180

0.056%

$ 10,679

$ 803,859

1u

Adair-Palmyra - Land - No HCS

3170

$ 110,073

$ 102,332

$ 100,080

$ (2,252)

0.056%

$ (30)

$ (2,282)

3

Subtotal

$ 127,513,156

$ 118,545,498

$ 119,507,672

4

Under/(Over) Recovery

$ 962,174

$ 12,956

$ 975,130

5

Applicable Interest rate per month (expressed to four decimal places)

Interest Rate to be updated through July 2017

0.0561%

1

Amount excludes True-Up Adjustment, as reported in True-Up Year projected Attachment MM, page 2, column 15.

2

Rounded to whole dollars.

Atxi 2016 MVP SPEND

Ameren

MVPs

Ameren Name

2016

CAPEX

MTEP #s

MTEP Description

Illinois Rivers

$354

million

2237

Pana - Mt. Zion - Kansas - Sugar Creek 345 kV line

2239

Sidney to Rising 345 kV line

3017

Palmyra-Quincy-Meredosia - Ipava & Meredosia-Pawnee 345 kV Line

3169

Pawnee to Pana - 345 kV Line

3170New Palmyra Substation (Maywood)Spoon River$36 million  3022Fargo-Galesburg-Oak Grove 345 kV Line  Mark Twain$9 million  2248Adair - Ottumwa 3453170Adair-Palmyra 345 kV Line  

MVP Facilities in service

Illinois Rivers

All 10 Substations

4 of 9 Line Segments

Austin

Faraday-Pana (32.4 mi)

Faraday

Sidney-Rising (24.2 mi)

Herleman

Maywood-Herleman (14.7 mi)

Ipava

Herleman-Meredosia (46.6 mi)

 Kansas   Maywood2 of 3 River Crossings MeredosiaHerleman-Maywood PanaMeredosia-Herleman Rising  Sidney   Spoon River Fargo Substation   Sandburg Substation  

Additional informationAdditional questions can be sent to Ameren at: MISOFormulaRates@ameren.com

MISO Web LinksTransmission Pricing - Attachments O, GG & MM Informationhttps://www.misoenergy.org/MarketsOperations/TransmissionSettlements/Pages/TransmissionPricing.aspxAmeren OASIS

http://www.oasis.oati.com/AMRN/index.html

MTEP 16

https

://www.misoenergy.org/Planning/TransmissionExpansionPlanning/Pages/MTEP16.aspx

MTEP 17

https://www.misoenergy.org/Planning/TransmissionExpansionPlanning/Pages/MTEP17.aspx

Schedule 26 & 26-A Indicative Charges

https

://

www.misoenergy.org/Planning/TransmissionExpansionPlanning/Pages/MTEPStudies.aspx