Presentation on theme: "2013 Transmission Stakeholder Meeting"— Presentation transcript:
1 2013 Transmission Stakeholder Meeting Ameren Transmission Company of Illinois and Ameren Illinois CompanyOctober 17, 2012
2 AgendaMain Purpose is to review ATXI and AIC Projected 2013 Transmission Rate CalculationsBackground on Attachment O, GG & MMOverview of MTEP and MVPsForward Looking RatesApproved IncentivesATXI Comparison to Current Revenue RequirementAIC Comparison to Current Revenue Requirement2013 AMIL Pricing Zone NITS Charge
3 Aic and AtxiBoth 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 projectsATXI 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-AAttachment 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 MISOSchedule 9 is billed by Ameren
5 Cost Recovery for certain Network Upgrades Eligible projects MISO ATTACHMENT ggCost Recovery for certain Network UpgradesEligible projectsBaseline ReliabilityMarket EfficiencyGenerator InterconnectionsCost shared based upon project typeMISO-wide based on loadSubregional based on LODF (Line Outage Distribution Factor)AIC has three Attachment GG projects completedATXI has no Attachment GG projects
6 Cost recovery for Multi-Value Projects (MVPs) MISO ATTACHMENT MMCost recovery for Multi-Value Projects (MVPs)Very similar format as Attachment GGCriteria for being consideredDeveloped through planning process and support energy policyMultiple types of economic value across multiple pricing zones with benefit to costs > 1Address at least one:Projected NERC violationEconomic-based issueCost shared across MISO based on loadAMIL Zone is approximately 9%Ameren MVPs will primarily be built by ATXIAIC will be responsible for modifications needed to its existing facilities
7 MISO ATTACHMENT O, GG & MM All transmission costs included in Attachment O calculationSchedule 9 based on net revenue requirement – reductions for:Costs recovered in Schedules 26 & 26-APoint-to-Point revenue in Schedules 7 & 8Rental revenueRevenue from generator interconnectionsQuestions on Tariffs?
8 Miso transmission expansion plan (MTEP) Developed on an annual basis building upon previous analysisMISO, Transmission Owners & StakeholdersIncludes subregional planning meetingsMTEP goalsEnsure the reliability of the transmission systemEnsure compliance with NERC StandardsProvide economic benefits, such as increased market efficiencyFacilitate public policy objectives, such as meeting Renewable Portfolio StandardsAddress other issues or goals identified through the stakeholder processMultiple future scenarios analyzedEnd result – comprehensive, cohesive plan for MISO footprintMTEP approved by MISO Board of Directors
9 Brief history of development MISO MVPSBrief history of developmentBegan investigating value added expansion in 20032008 Regional Generation Outlet Study (RGOS) - formed basis of Candidate MVP portfolioPortfolio refined due to additional analysisMISO approved portfolio of 17 ProjectsSeven transmission line segments (MTEP proj numbers) in Ameren territoryAmeren identifies these three projects as:Illinois Rivers (four line segments)Spoon RiverMark 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
11 Rates better reflect current costs Implemented by several MISO TOs Forward looking ratesRates better reflect current costsImplemented by several MISO TOsRequires true-up to actual year costsNew calculations based on projected 2013 dataRate base items -13 month average balanceInterest on over/under recovery2013 true-up calculated in 2014 and reflected in 2015 ratesFERC approved forward looking rates for ATXI effective March 1, 2012AIC filed request at FERC in July 2012 and expects an Order by the end of 2012.
12 Forward looking rates timeline September 1, 2012Calculate 2013 revenue requirements for AIC & ATXIOctober 31, 2012Meet with Customers to discuss rate input projections and cost detailJanuary 1, 2013New rates in effectJuly 1, 2013Calculate and post 2012 true-up (Only ATXI in 2013)September 1, 2013Calculate 2014 revenue requirements for AIC & ATXIIncludes 2012 true up with interest for ATXIOctober 31, 2013January 1, 2014New rates in effect based on 2014 projections and 2012 true-up for ATXI
13 Rate incentivesFERC approved the following rate incentives for Illinois River in Docket No. EL10-80CWIP (no AFUDC)Abandonment (requires additional filing prior to recovery)Hypothetical capital structure during construction for ATXIJuly 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 Mar-12 Jan-13 Change Percent Page.LineMar-12Jan-13ChangePercent2.6Total 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 BASEN/A2.20Account No. 282-11,550,000-12,172,000-622,0005%2.21Account No. 283-8,0002.22Account No. 1904,009,0003,984,000-25,000-1%2.25Land Held for Future Use2.26CWC68,110115,50047,39170%2.27Materials & Supplies2.28PrepaymentsTOTAL ADJUSTMENTS-7,472,891-8,080,500-607,6108%2.30TOTAL RATE BASE52,787,11086,370,50033,583,39164%
17 ATXI True-up & Net Revenue Requirement Atxi Projections for 2013ATXI True-up & Net Revenue RequirementPage.LineMar-12Jan-13ChangePercent1.1Gross Revenue Requirement7,790,6017,845,15854,5571%1.6Total Revenue Credits611,000488,000-123,000-20%1.6aHistoric Year Actual ATRRN/A1.6bProjected ATRR from Prior Year1.6cPrior Year ATRR True-Up1.6dPrior Year Divisor True-Up1.6eInterest on Prior Year True-Up1.7NET REVENUE REQUIREMENT7,179,6017,357,158177,5572%
18 ATXI Attachment MM Calculation - Page 1 Atxi Projections for 2013ATXI Attachment MM Calculation - Page 1(1)(3)(4)Line No.TransmissionAllocator1Gross Transmission Plant - Total97,103,0001aTransmission Accumulated Depreciation2,652,0002Net Transmission Plant - Total94,451,000O&M TRANSMISSION EXPENSE3Total O&M Allocated to Transmission924,0003aTransmission O&M41,0003bLess: LSE Expenses included in above, if any-3cLess: Account 565 included in above, if any3dAdjusted Transmission O&M4Annual Allocation Factor for Transmission O&M1.55%OTHER O&M EXPENSE4aOther O&M Allocated to Transmission883,0004bAnnual Allocation Factor for Other O&M0.91%GENERAL AND COMMON (G&C) DEPRECIATION EXPENSE5Total G&C Depreciation Expense6Annual Allocation Factor for G&C Depreciation Expense0.00%TAXES OTHER THAN INCOME TAXES7Total Other Taxes25,0008Annual Allocation Factor for Other Taxes0.03%9Annual Allocation Factor for Other Expense0.94%INCOME TAXES10Total Income Taxes4,188,90111Annual Allocation Factor for Income Taxes4.43%RETURN (Note I)12Return on Rate Base7,336,76313Annual Allocation Factor for Return on Rate Base7.77%14Annual Allocation Factor for Return12.20%HYPOTHETICAL CAPITAL STRUCTURE (HCS) RETURN15Annual Allocation Factor HCS Return (Note J)0.0042%
19 ATXI Attachment MM Calculation - Page 2 Atxi Projections for 2013ATXI Attachment MM Calculation - Page 2(1)(2)(3)(4)(5)(6)(7)(8)(9)Line No.Project NameMTEP Project NumberProject Gross PlantProject Accumulated DepreciationTransmission O&M Annual Allocation FactorAnnual Allocation for Transmission O&M ExpenseOther Expense Annual Allocation FactorAnnual Allocation for Other ExpenseAnnual 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)1aPana-Sugar Creek2237$13,801,511$01.55%0.94%$129,056.491bSidney-Rising2239$3,083,519$28,833.661cPalmyra-Pawnee3017$23,644,040$221,092.951dPawnee-Pana3169$2,363,032$22,096.47(10)(11)(11a)(12)(13)(14)(15)(16)Project Net PlantAnnual Allocation Factor for ReturnAnnual Allocation Factor for HCS ReturnAnnual Return ChargeProject Depreciation ExpenseAnnual Revenue RequirementTrue-Up AdjustmentMVP Annual Adjusted Revenue Requirement(Col 3 - Col 4)(Pg 1 line 14)(Pg 1 line 15) (Note J)(Col 10 * (Col Col 11a))(Note E)(Sum Col. 9, 12 & 13)(Note F)Sum Col 14 & 15 (Note G)12.20%0.0042%$ ,684,753$ 1,813,810$1,813,809.87$ ,406$ ,239$405,239.48$ ,886,233$ 3,107,326$3,107,325.94$ ,456$ ,552$310,552.282MVP Total Annual Revenue Requirements$5,636,9283Rev. Req. Adj For Attachment O
20 Atxi Projections for 2013 Ameren MVPS Ameren Name 2012-2013 CAPEX MTEP #sMTEP DescriptionIllinois Rivers$78 million2237Pana - Mt. Zion - Kansas - Sugar Creek 345 kV line2239Sidney to Rising 345 kV line3017Palmyra-Quincy-Meredosia - Ipava & Meredosia-Pawnee 345 kV Line3169Pawnee to Pana kV LineSpoon River$0.0 million3022Fargo-Galesburg-Oak Grove 345 kV LineMark Twain2248Adair - Ottumwa 3453170Adair-Palmyra 345 kV Line
21 AIC Revenue Requirement June 2012 vs Projected 2013
22 Aic Projections for 2013 AIC Rate Base Jun-12 Jan-13 Change Percent Page.LineJun-12Jan-13ChangePercent2.6Total 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 RECOVERYN/AADJUSTMENTS TO RATE BASE2.20Account No. 282-136,971,095-221,677,954-84,706,86062%2.21Account No. 283-1,155,409-10,630,339-9,474,930820%2.22Account No. 19026,320,34247,632,20221,311,86081%2.23Account No. 255-785,4252.25Land Held for Future Use1,637,671528,800-1,108,871-68%2.26CWC3,755,5314,399,010643,47917%2.27Materials & Supplies4,038,5584,093,95755,3991%2.28Prepayments1,015,306936,720-78,585-8%TOTAL ADJUSTMENTS-101,359,096-175,503,029-74,143,93373%2.30TOTAL RATE BASE426,442,071581,596,185155,154,11436%
24 Total AIC Revenue Requirement Aic Projections for 2013Total AIC Revenue RequirementPage.LineJun-12Jan-13ChangePercent2.30TOTAL 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 AdjustmentN/A3.31GROSS REV. REQ. UNDER ATT. O112,463,734141,069,15828,605,42325%
25 AIC True-up & Net Revenue Requirement Aic Projections for 2013AIC True-up & Net Revenue RequirementPage.LineJun-12Jan-13ChangePercent1.1Gross Revenue Requirement112,463,734141,069,15828,605,42325%1.6Total Revenue Credits7,886,6188,011,058124,4402%1.6aHistoric Year Actual ATRRN/A1.6bProjected ATRR from Prior Year1.6cPrior Year ATRR True-Up1.6dPrior Year Divisor True-Up1.6eInterest on Prior Year True-Up1.7aNET REVENUE REQUIREMENT104,577,116133,058,09928,480,98327%1.7bPrairie Power583,7240%1.7AIC Adjusted Revenue Requirement105,160,840133,641,82328,480,984
26 AIC Attachment GG Calculation - Page 1 Aic Projections for 2013AIC Attachment GG Calculation - Page 1(1)(2)(3)(4)Attachment OLinePage, Line, Col.TransmissionAllocatorNo.1Gross Transmission Plant - TotalAttach O, p 2, line 2 col 5 (Note A)1,171,789,3602Net Transmission Plant - TotalAttach O, p 2, line 14 and 23b col 5 (Note B)737,577,578O&M EXPENSE3Total O&M Allocated to TransmissionAttach O, p 3, line 8 col 535,192,0804Annual Allocation Factor for O&M(line 3 divided by line 1 col 3)3.00%GENERAL AND COMMON (G&C) DEPRECIATION EXPENSE5Total G&C Depreciation ExpenseAttach O, p 3, lines 10 & 11, col 5 (Note H)974,9166Annual Allocation Factor for G&C Depreciation Expense(line 5 divided by line 1 col 3)0.08%TAXES OTHER THAN INCOME TAXES7Total Other TaxesAttach O, p 3, line 20 col 52,250,9998Annual Allocation Factor for Other Taxes(line 7 divided by line 1 col 3)0.19%9Annual Allocation Factor for ExpenseSum of line 4, 6, and 83.28%INCOME TAXES10Total Income TaxesAttach O, p 3, line 27 col 526,615,06411Annual Allocation Factor for Income Taxes(line 10 divided by line 2 col 3)3.61%RETURN12Return on Rate BaseAttach O, p 3, line 28 col 558,531,64313Annual Allocation Factor for Return on Rate Base(line 12 divided by line 2 col 3)7.94%14Annual Allocation Factor for ReturnSum of line 11 and 1311.54%
27 AIC Attachment GG Calculation - Page 2 Aic Projections for 2013AIC Attachment GG Calculation - Page 2(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12)Line No.Project NameMTEP Project NumberProject Gross PlantAnnual Allocation Factor for ExpenseAnnual Expense ChargeProject Net PlantAnnual Allocation Factor for ReturnAnnual Return ChargeProject 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)1aWood River-Roxford kV line728$3,424,4873.28%$112,274.38$3,126,88111.54%$360,970.35$62,088$535,333.19$0535,3331bSidney-Paxton 138kV Reconductor 18 miles870$5,994,479$196,533.50$5,457,597$630,030.56$121,199$947,763.37947,7631cCoffeen Plant-Coffeen, North - 2nd. Bus tie2829$5,593,763$183,395.74$5,394,027$622,691.99$99,459$905,546.32905,5461dStallings Sub transformer/ring bus2065$7,298,067$239,272.60$7,229,100$834,534.64$137,933$1,211,740.701,211,7412Annual Totals$3,600,3843Rev. Req. Adj For Attachment O
28 Significant Line Expansion Projects Requiring CoCN (> $25 Million) AIC Projections for 2013Significant Line Expansion Projects Requiring CoCN (> $25 Million)Project NameTotal CostISDMTEPMISO ID#MTEP DescriptionLaSalle-Fox River approval granted$64 M2012MTEP05725/726N. 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 OttawaLatham-Oreana approval granted$26 M2014MTEP082068Convert 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 granted2069South 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 SubstationDuck Creek-Fargo (Maple Ridge)$78 M2016MTEP092472Tap 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 M2015MTEP102992Bondville-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 Modifications to Existing Facilities AIC Projections for 2013Modifications to Existing FacilitiesCategoryCAPEXProjectsDescriptionReliability/aging infrastructure replacement$178 million196These 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 million54These 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 million38These 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 million36These 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.