AmerenUE to ask for rate increase
Facing rising costs for everything from coal and natural gas to electric transformers and copper wire, AmerenUE will ask Missouri regulators this spring for permission to increase electric rates.
Ameren Corp. executives, speaking to financial analysts in New York on Thursday, didn’t specify how large of an increase they’ll seek or exactly when they’ll file the request. In May, The Missouri Public Service Commission approved a $43 million increase in electric rates — the first such increase for AmerenUE in two decades.
For years, Ameren and many other utilities saw costs decline, leading to flat or lower electric rates. But those days are over, Chief Executive Gary L. Rainwater said. Today, the company faces higher costs in almost every area of its business, especially fuel used to run its fleet of power plants. “We’re no longer a declining cost industry,” he said.
Ameren’s Illinois utilities sought a $247 million increase in electric and natural gas rates in November. Neither that rate case nor the expected request in Missouri this year will impact the company’s earnings until 2009, executives said.
The company expects 2008 earnings per share will be $2.80 to $3.20 a share, excluding certain costs. That’s about the same amount the company earned in 2007, and less than Wall Street analysts expected. On that basis, Ameren was expected to earn $3.57 a share this year.
“Earnings in 2008 are expected to be negatively impacted by rising costs and investments, most notably in our regulated businesses,” Rainwater said. “Current rate levels are not sufficient to recover our existing costs.”
Ameren shares fell $1.13 to $49.43 at 12:30 p.m. The stock has lost nearly $4 a share in the past 10 days.
You have got to be kidding me. They want more money?? Here’s a suggestion, perhaps if they kept everyone’s power on all year long they would generate enough revenue to not ask for a pay hike. If ever I have to sit in my house without power again they can sit and wait for their pay!!! See what it feels like to wait for something.