Item 7.01 Regulation FD Disclosure.
On December 11, 2020, Spire Missouri Inc. (Spire), a wholly owned subsidiary of
Spire Inc. (NYSE: SR), filed a general rate case with the Missouri Public
Service Commission (MoPSC) that includes new proposed rates for its service
areas. The case proposes an increase in base rates, reflecting recovery of
system investments and operating costs necessary to maintain the safety and
reliability of its natural gas distribution systems as well as to support
enhancements to customer service.
Spire's request, if approved, represents a net base rate increase of $64.2
million. Spire is already recovering $47.3 million from customers through the
Infrastructure System Replacement Surcharge (ISRS), resulting in a total base
rate increase request of $111.5 million. The proposed rates are calculated on a
filed rate base of $2,780 million based on the end of fiscal year 2020.
The rate base has increased by 37% percent since Spire's last general rate
filing test year ended September 30, 2017, reflecting the significant investment
made in infrastructure upgrades and other systems. Among other things, the
filing changes rate design, proposes new customer programs, and aligns the
tariffs of the company's service areas.
The filing assumes a common equity ratio of 54.25% and a 9.95% return on equity.
We anticipate that certain measures, such as rate base, capital structure and
operating costs will be updated over the course of the rate proceeding.
In accordance with Missouri law, the MoPSC has 11 months to consider this
filing.
The information disclosed in this Item 7.01 is being furnished and shall not be
deemed "filed" for purposes of Section 18 of the Securities Exchange Act of
1934, as amended (the Exchange Act), or otherwise subject to the liabilities
under that section, nor shall it be deemed incorporated by reference in any
filing under the Securities Act of 1933, as amended, or the Exchange Act except
as expressly set forth by specific reference in such filing.
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