Presentation on theme: "2013 Transmission Stakeholder Meeting Ameren Transmission Company of Illinois and Ameren Illinois Company October 17, 2012."— Presentation transcript:
2013 Transmission Stakeholder Meeting Ameren Transmission Company of Illinois and Ameren Illinois Company October 17, 2012
2 AGENDA Main Purpose is to review ATXI and AIC Projected 2013 Transmission Rate Calculations Background on Attachment O, GG & MM Overview of MTEP and MVPs Forward Looking Rates Approved Incentives ATXI Comparison to Current Revenue Requirement AIC Comparison to Current Revenue Requirement 2013 AMIL Pricing Zone NITS Charge
3 AIC AND ATXI Both AIC and ATXI are transmission owning subsidiaries of Ameren Corporation, as well as MISO Transmission Owners (TOs) The sum of their Attachment O net revenue requirements equals the total revenue requirement for AMIL pricing zone to be collected under Schedule 9 (NITS) AIC will continue to build and own traditional reliability projects ATXI is in the process of building and will own new regional transmission projects
4 MISO ATTACHMENTS O, GG & MM Calculate rates for Schedules 9, 26 & 26-A Attachment GG - Schedule 26 (page 5) Attachment MM - Schedule 26-A (page 6) Attachment O - net revenue requirement billed under Schedule 9 (page 7) Schedules 26 and 26-A are billed by MISO Schedule 9 is billed by Ameren
5 MISO ATTACHMENT GG Cost Recovery for certain Network Upgrades Eligible projects Baseline Reliability Market Efficiency Generator Interconnections Cost shared based upon project type MISO-wide based on load Subregional based on LODF (Line Outage Distribution Factor) AIC has three Attachment GG projects completed ATXI has no Attachment GG projects
6 MISO ATTACHMENT MM Cost recovery for Multi-Value Projects (MVPs) Very similar format as Attachment GG Criteria for being considered Developed through planning process and support energy policy Multiple types of economic value across multiple pricing zones with benefit to costs > 1 Address at least one: Projected NERC violation Economic-based issue Cost shared across MISO based on load AMIL Zone is approximately 9% Ameren MVPs will primarily be built by ATXI AIC will be responsible for modifications needed to its existing facilities
7 MISO ATTACHMENT O, GG & MM All transmission costs included in Attachment O calculation Schedule 9 based on net revenue requirement – reductions for: Costs recovered in Schedules 26 & 26-A Point-to-Point revenue in Schedules 7 & 8 Rental revenue Revenue from generator interconnections Questions on Tariffs?
8 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
9 MISO MVPS Brief history of development Began investigating value added expansion in Regional Generation Outlet Study (RGOS) - formed basis of Candidate MVP portfolio Portfolio refined due to additional analysis MISO approved portfolio of 17 Projects Seven transmission line segments (MTEP proj numbers) in Ameren territory Ameren identifies these three projects as: Illinois Rivers (four line segments) Spoon River Mark Twain (two line segments) Broadly cost-shared, AMIL pricing zone allocated 9% of each MVP no matter where project is located or who builds it
10 MAP OF AMEREN MVPS
11 FORWARD LOOKING RATES Rates better reflect current costs Implemented by several MISO TOs Requires true-up to actual year costs New calculations based on projected 2013 data Rate base items -13 month average balance Interest on over/under recovery 2013 true-up calculated in 2014 and reflected in 2015 rates FERC approved forward looking rates for ATXI effective March 1, 2012 AIC filed request at FERC in July 2012 and expects an Order by the end of 2012.
12 FORWARD LOOKING RATES TIMELINE September 1, 2012 Calculate 2013 revenue requirements for AIC & ATXI October 31, 2012 Meet with Customers to discuss rate input projections and cost detail January 1, 2013 New rates in effect July 1, 2013 Calculate and post 2012 true-up (Only ATXI in 2013) September 1, 2013 Calculate 2014 revenue requirements for AIC & ATXI Includes 2012 true up with interest for ATXI October 31, 2013 Meet with Customers to discuss rate input projections and cost detail January 1, 2014 New rates in effect based on 2014 projections and 2012 true-up for ATXI
13 RATE INCENTIVES FERC approved the following rate incentives for Illinois River in Docket No. EL10-80 –CWIP (no AFUDC) –Abandonment (requires additional filing prior to recovery) –Hypothetical capital structure during construction for ATXI July 2012 filing requested similar incentives for Spoon River and Mark Twain Projects
14 ATXI Revenue Requirement Projected 2012 vs Projected 2013
15 ATXI PROJECTIONS FOR 2013 ATXI Rate Base Page.Line Mar-12Jan-13ChangePercent 2.6Total Gross Plant53,171,00063,438,00010,267,00019% 2.12Total Accum Depreciation1,653,0002,652,000999,00060% 2.18TOTAL NET PLANT51,518,00060,786,0009,268,00018% 2.18a100% CWIP RECOVERY8,742,00033,665,00024,923,000285% ADJUSTMENTS TO RATE BASE0N/A 2.20 Account No ,550,000-12,172, ,0005% 2.21 Account No ,000 N/A 2.22 Account No. 1904,009,0003,984,000-25,000-1% 2.25 Land Held for Future Use000N/A 2.26 CWC68,110115,50047,39170% 2.27 Materials & Supplies000N/A 2.28 Prepayments000N/A TOTAL ADJUSTMENTS-7,472,891-8,080, ,6108% 2.30TOTAL RATE BASE52,787,11086,370,50033,583,39164%
16 ATXI PROJECTIONS FOR 2013 ATXI Expenses Page.Line Mar-12Jan-13ChangePercent O&M 3.1 Transmission44,87641,000-3,876-9% 3.1a Less LSE Expenses000N/A 3.2 Less Account N/A 3.3 A&G500,000883,000383,00077% 3.4 Less FERC Annual Fees000N/A 3.5 Less EPRI, ect.000N/A 3.5a Plus Trans. Reg. Comm. Exp000N/A 3.8TOTAL O&M544,876924,000379,12470% 3.12TOTAL DEPRECIATION1,013,8561,006,000-7,856-1% TAXES0N/A 3.13 Payroll000N/A 3.16 Property000N/A 3.18 Other025,000 N/A 3.27 Income Taxes2,391,3164,188,9011,797,58475% TOTAL TAXES2,391,3164,213,9011,822,58476% TOTAL EXPENSES3,950,0486,143,9012,193,85256%
17 ATXI PROJECTIONS FOR 2013 ATXI True-up & Net Revenue Requirement Page.Line Mar-12Jan-13ChangePercent 1.1Gross Revenue Requirement7,790,6017,845,15854,5571% 1.6Total Revenue Credits611,000488, ,000-20% 1.6aHistoric Year Actual ATRR000N/A 1.6bProjected ATRR from Prior Year000N/A 1.6cPrior Year ATRR True-Up000N/A 1.6dPrior Year Divisor True-Up000N/A 1.6eInterest on Prior Year True-Up000N/A 1.7NET REVENUE REQUIREMENT7,179,6017,357,158177,5572%
18 ATXI PROJECTIONS FOR 2013 ATXI Attachment MM Calculation - Page 1 (1)(3)(4) Line No.TransmissionAllocator 1Gross Transmission Plant - Total 97,103,000 1aTransmission Accumulated Depreciation 2,652,000 2Net Transmission Plant - Total 94,451,000 O&M TRANSMISSION EXPENSE 3Total O&M Allocated to Transmission 924,000 3aTransmission O&M 41,000 3bLess: LSE Expenses included in above, if any - 3cLess: Account 565 included in above, if any - 3dAdjusted Transmission O&M 41,000 4Annual Allocation Factor for Transmission O&M1.55% OTHER O&M EXPENSE 4aOther O&M Allocated to Transmission 883,000 4bAnnual Allocation Factor for Other O&M0.91% GENERAL AND COMMON (G&C) DEPRECIATION EXPENSE 5Total G&C Depreciation Expense - 6Annual Allocation Factor for G&C Depreciation Expense0.00% TAXES OTHER THAN INCOME TAXES 7Total Other Taxes 25,000 8Annual Allocation Factor for Other Taxes0.03% 9Annual Allocation Factor for Other Expense0.94% INCOME TAXES 10Total Income Taxes 4,188,901 11Annual Allocation Factor for Income Taxes4.43% RETURN (Note I) 12Return on Rate Base 7,336,763 13Annual Allocation Factor for Return on Rate Base7.77% 14Annual Allocation Factor for Return12.20% HYPOTHETICAL CAPITAL STRUCTURE (HCS) RETURN 15Annual Allocation Factor HCS Return (Note J)0.0042%
19 ATXI PROJECTIONS FOR 2013 ATXI Attachment MM Calculation - Page 2 (1)(2)(3)(4)(5)(6)(7)(8)(9) Line No. Project Name MTEP Project Number Project Gross Plant Project Accumulated Depreciation Transmission O&M Annual Allocation Factor Annual Allocation for Transmission O&M Expense Other Expense Annual Allocation Factor Annual Allocation for Other Expense Annual Expense Charge (Note C) Page 1 line 4(Col 4 * Col 5)Page 1 line 9(Col 3 * Col 7)(Col 6 + Col 8) Multi-Value Projects (MVP) 1a Pana-Sugar Creek2237$13,801,511$01.55%$00.94%$129, b Sidney-Rising2239$3,083,519$01.55%$00.94%$28, c Palmyra-Pawnee3017$23,644,040$01.55%$00.94%$221, d Pawnee-Pana3169$2,363,032$01.55%$00.94%$22, (1)(2)(10)(11)(11a)(12)(13)(14)(15)(16) Line No. Project Name MTEP Project Number Project Net Plant Annual Allocation Factor for Return Annual Allocation Factor for HCS Return Annual Return Charge Project Depreciation Expense Annual Revenue Requirement True-Up Adjustment MVP Annual Adjusted Revenue Requirement (Col 3 - Col 4)(Pg 1 line 14) (Pg 1 line 15) (Note J) (Col 10 * (Col 11 + Col 11a))(Note E) (Sum Col. 9, 12 & 13)(Note F) Sum Col 14 & 15 (Note G) Multi-Value Projects (MVP) 1a Pana-Sugar Creek2237$13,801, %0.0042% $ 1,684,753$0 $ 1,813,810$0$1,813, b Sidney-Rising2239$3,083, %0.0042% $ 376,406$0 $ 405,239$0$405, c Palmyra-Pawnee3017$23,644, %0.0042% $ 2,886,233$0 $ 3,107,326$0$3,107, d Pawnee-Pana3169$2,363, %0.0042% $ 288,456$0 $ 310,552$0$310, MVP Total Annual Revenue Requirements$5,636,928$0$5,636,928 3Rev. Req. Adj For Attachment O$5,636,928
20 ATXI PROJECTIONS FOR 2013 Ameren MVPS Ameren Name CAPEXMTEP #sMTEP Description Illinois Rivers$78 million 2237Pana - Mt. Zion - Kansas - Sugar Creek 345 kV line 2239Sidney to Rising 345 kV line 3017Palmyra-Quincy-Meredosia - Ipava & Meredosia-Pawnee 345 kV Line 3169Pawnee to Pana kV Line Spoon River$0.0 million 3022Fargo-Galesburg-Oak Grove 345 kV Line Mark Twain$0.0 million 2248Adair - Ottumwa Adair-Palmyra 345 kV Line
21 AIC Revenue Requirement June 2012 vs Projected 2013
22 AIC PROJECTIONS FOR 2013 AIC Rate Base Page.Line Jun-12Jan-13ChangePercent 2.6Total Gross Plant953,216,9651,203,711,514250,494,54926% 2.12Total Accum Depreciation425,415,799446,612,30021,196,5025% 2.18TOTAL NET PLANT527,801,167757,099,214229,298,04743% 2.18a100% CWIP RECOVERY000N/A ADJUSTMENTS TO RATE BASE0N/A 2.20 Account No ,971, ,677,954-84,706,86062% 2.21 Account No ,155,409-10,630,339-9,474,930820% 2.22 Account No ,320,34247,632,20221,311,86081% 2.23 Account No ,425 N/A 2.25 Land Held for Future Use1,637,671528,800-1,108,871-68% 2.26 CWC3,755,5314,399,010643,47917% 2.27 Materials & Supplies4,038,5584,093,95755,3991% 2.28 Prepayments1,015,306936,720-78,585-8% TOTAL ADJUSTMENTS-101,359, ,503,029-74,143,93373% 2.30TOTAL RATE BASE426,442,071581,596,185155,154,11436%
23 AIC PROJECTIONS FOR 2013 AIC Expenses Page.Line Jun-12Jan-13ChangePercent O&M 3.1 Transmission38,237,88939,184,517946,6282% 3.1a Less LSE Expenses3,090,097 00% 3.2 Less Account 56514,522,51611,657,490-2,865,027-20% 3.3 A&G9,969,18311,319,3741,350,19114% 3.4 Less FERC Annual Fees000N/A 3.5 Less EPRI, ect.582,803596,87314,0702% 3.5a Plus Trans. Reg. Comm. Exp32,59332,649560% 3.8TOTAL O&M30,044,24835,192,0805,147,83217% 3.12TOTAL DEPRECIATION17,308,46622,079,7564,771,29128% TAXES0N/A 3.13 Payroll642,493875,947233,45336% 3.16 Property802,4351,005,911203,47525% 3.18 Other241,057369,141128,08553% 3.27 Income Taxes21,427,19326,615,0645,187,87124% TOTAL TAXES23,113,17928,866,0635,752,88425% TOTAL EXPENSES70,465,89286,137,89915,672,00722%
24 AIC PROJECTIONS FOR 2013 Total AIC Revenue Requirement Page.Line Jun-12Jan-13ChangePercent 2.30TOTAL RATE BASE426,442,071581,596,185155,154,11436% 4.30Rate of Return10.44%10.06%-0.38%-4% 3.28Return44,537,53058,531,64313,994,11331% Total Expenses70,465,89286,137,89915,672,00722% 3.29TOTAL GROSS REV. REQ.115,003,422144,669,54229,666,12026% 3.30Less ATT. GG Adjustment2,539,6873,600,3841,060,69742% 3.30aLess ATT. MM Adjustment000N/A 3.31GROSS REV. REQ. UNDER ATT. O112,463,734141,069,15828,605,42325%
25 AIC PROJECTIONS FOR 2013 AIC True-up & Net Revenue Requirement Page.Line Jun-12Jan-13ChangePercent 1.1Gross Revenue Requirement112,463,734141,069,15828,605,42325% 1.6Total Revenue Credits7,886,6188,011,058124,4402% 1.6a Historic Year Actual ATRR000N/A 1.6b Projected ATRR from Prior Year000N/A 1.6cPrior Year ATRR True-Up000N/A 1.6dPrior Year Divisor True-Up000N/A 1.6e Interest on Prior Year True-Up000N/A 1.7aNET REVENUE REQUIREMENT104,577,116133,058,09928,480,98327% 1.7bPrairie Power583,724 00% 1.7AIC Adjusted Revenue Requirement105,160,840133,641,82328,480,98427%
26 AIC PROJECTIONS FOR 2013 AIC Attachment GG Calculation - Page 1 (1)(2)(3)(4) Attachment O LinePage, Line, Col.TransmissionAllocator No. 1Gross Transmission Plant - Total Attach O, p 2, line 2 col 5 (Note A)1,171,789,360 2Net Transmission Plant - Total Attach O, p 2, line 14 and 23b col 5 (Note B) 737,577,578 O&M EXPENSE 3Total O&M Allocated to Transmission Attach O, p 3, line 8 col 535,192,080 4Annual Allocation Factor for O&M (line 3 divided by line 1 col 3)3.00% GENERAL AND COMMON (G&C) DEPRECIATION EXPENSE 5Total G&C Depreciation Expense Attach O, p 3, lines 10 & 11, col 5 (Note H)974,916 6Annual Allocation Factor for G&C Depreciation Expense (line 5 divided by line 1 col 3)0.08% TAXES OTHER THAN INCOME TAXES 7Total Other Taxes Attach O, p 3, line 20 col 52,250,999 8Annual Allocation Factor for Other Taxes (line 7 divided by line 1 col 3)0.19% 9Annual Allocation Factor for Expense Sum of line 4, 6, and 83.28% INCOME TAXES 10Total Income Taxes Attach O, p 3, line 27 col 526,615,064 11Annual Allocation Factor for Income Taxes (line 10 divided by line 2 col 3)3.61% RETURN 12Return on Rate Base Attach O, p 3, line 28 col 558,531,643 13Annual Allocation Factor for Return on Rate Base (line 12 divided by line 2 col 3)7.94% 14Annual Allocation Factor for Return Sum of line 11 and %
27 AIC PROJECTIONS FOR 2013 AIC 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 Expense Annual Revenue Requirement True-Up Adjustment Network 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) 1aWood River-Roxford kV line728$3,424, %$112,274.38$3,126, %$360,970.35$62,088$535,333.19$0535,333 1bSidney-Paxton 138kV Reconductor 18 miles870$5,994, %$196,533.50$5,457, %$630,030.56$121,199$947,763.37$0947,763 1cCoffeen Plant-Coffeen, North - 2nd. Bus tie2829$5,593, %$183,395.74$5,394, %$622,691.99$99,459$905,546.32$0905,546 1dStallings Sub transformer/ring bus2065$7,298, %$239,272.60$7,229, %$834,534.64$137,933$1,211,740.70$01,211,741 2Annual Totals$3,600,384$0$3,600,384 3Rev. Req. Adj For Attachment O$3,600,384
28 AIC PROJECTIONS FOR 2013 Significant Line Expansion Projects Requiring CoCN (> $25 Million) Project NameTotal CostISDMTEPMISO ID#MTEP Description LaSalle-Fox River approval granted $64 M2012MTEP05725/726 N. LaSalle-Wedron Fox River 138 kV - 24 miles new line, kV breakers at N. LaSalle, kV Breaker at Wedron Fox River. Ottawa-Wedron Fox River 138 kV - Construct 9 miles new 138 kV line, 1 new 138 kV breaker at Ottawa Latham-Oreana approval granted $26 M2014MTEP Convert Oreana 345 kV Bus to 6-Position Ring Bus with 3000 A Capability; Construct 8.5 miles of 345 kV line (2-954 kcmil ACSR conductor or equivalent capability) from Oreana Substation to 345 kV Line 4571 tap to Latham Substation kV PCB's at Oreana Substation. Brokaw-S Bloomington approval granted $26 M2014MTEP South Bloomington Area 345/138 kV Substation - Install 345/138 kV, 560 MVA Transformer. Extend new 345 kV line approximately 5 miles from Brokaw Substation to South Bloomington Substation. Install kV PCB at South Bloomington Substation, and kV PCB's at Brokaw Substation Duck Creek-Fargo (Maple Ridge) $78 M2016MTEP Tap existing 345kV line from Duck Creek to Tazewell and create new Maple Ridge Substation ($6.5M). Build a new supply line to the Fargo Substation by extending 20 miles of 345kV from the new Maple Ridge Substation ($50.1M). Create Fargo Station and install 560 MVA 345/138kV Transformer ($9.4M) Bondville-SW Campus approval granted $42 M2015MTEP Bondville-S.W. Campus 138 kV - Construct 8 miles of new 138 kV line. Construct 138 kV Ring Bus at Bondville (2 new PCB's) and a 138 kV Ring Bus at Champaign S.W. Campus (4 new PCB's).
29 AIC PROJECTIONS FOR 2013 Modifications to Existing Facilities Category CAPEXProjectsDescription Reliability/aging infrastructure replacement $178 million196 These projects are primarily driven by the need to upgrade the transmission system based on meeting NERC standards or Ameren Planning Criteria and Guidelines. The NERC TPL standards set forth a set of tests that a transmission system must meet for a list of plausible scenarios, including contingent scenarios. Ameren Planning Criteria and Guidelines (C&G) are filed each year at FERC and constitute an additional, or complementary, set of tests that the transmission system must meet. Clearance for planned line rating $127 million54 These projects are primarily driven by the need to upgrade the transmission system to support expected flows on the transmission circuits. Load growth, plant additions/retirements, and flow changes due to future system expansions are primary inputs into the decision to either increase ground clearances using existing wire or in some cases, increasing ground clearances with wire replacement, in order to achieve higher circuit ratings. Right of way expansion$22 million38 These projects are driven by the need to increase the rights and rights-of-way associated with 40 transmission corridors. The primary benefit of this set of projects is increased reliability of the system in the area of vegetation. In many cases, the existing rights-of-way are much narrower than the widths specified in Ameren's Planning Criteria and Guidelines for reliable circuit operation. The 2003 blackout and the recent 2011 Northeast US major outage event had vegetation as an incipient cause. After both events, and with the adoption of the FAC-003 standard, FERC has emphasized the need for increased vegetation management efforts which these projects support. Improved Reliability$31 million36 These projects are driven by the need to address reliability concerns driven by system topology, configuration, or condition. Operating issues, including outages, usually identify these kinds of projects. The majority of these projects involve additions of equipment in substations, e.g. relaying and/or circuit breakers.