Order

              1
STATE OF ILLINOIS
ILLINOIS COMMERCE COMMISSION
Illinois Commerce Commission :
On Its Own Motion :
:
-vs- :
:
Ameren Illinois Company : 12-0211
d/b/a Ameren Illinois :
:
Reconciliation of revenues collected :
under Hazardous Materials Adjustment :
Clause Rider with actual and prudent :
associated costs. :
ORDER COMMENCING RECONCILIATION PROCEEDING
By the Commission:
In the final Order entered in Docket No. 04—0294 on September 22, 2004, the Commission approved, with modifications, the rider under which Illinois Power Company d/b/a/ AmerenIP would share the costs of asbestos litigation between shareholders and electric service ratepayers (“Hazardous Materials Adjustment Clause” or “HMAC Rider”). The Order directed AmerenIP to file the HMAC Rider to be effective January 2, 2007. On October 1, 2010, Illinois Power Company d/b/a AmerenIP and Central Illinois Light Company d/b/a/ AmerenCILCO were merged into Central Illinois Public Service Company d/b/a AmerenCIPS, which was then renamed Ameren Illinois Company d/b/a Ameren Illinois (“Ameren”). In its current form, Rider HMAC applies only to electric service ratepayers in Ameren’s Rate Zone III, which corresponds to the territory formerly served by AmerenIP. The rider is subject to annual reconciliation proceedings, and it is now appropriate to begin the investigation for the most recent reconciliation period.
The HMAC Rider was established along with a trust fund with an initial balance of $20 million funded by the company’s shareholders. The HMAC Rider provides that the utility may withdraw from the trust fund 90% of the amount by which its annual cash expenditures for prudently incurred HMAC costs exceed the amount in base rates, and, alternatively, that the utility shall deposit in the trust fund 90% of the amount by which the amount in base rates exceeds the utility’s cash expenditures for prudently incurred HMAC costs.