BEFORE THE PUBLIC SERVICE COMMISSION
STATE OF MISSOURI

In the Matter of the tariff filing of		)	
Union Electric Company			)	Case No. GT-2003-0034
						)	Tariff No. JG-2003-0050
						)

UNANIMOUS STIPULATION AND AGREEMENT

	COME NOW Union Electric Company d/b/a AmerenUE (UE), the Staff of the Missouri Public Service Commission (Staff), the Office of the Public Counsel (OPC), and the Missouri School Boards’ Association (Association) (collectively referred to as the parties) and submit this Unanimous Stipulation and Agreement (Stipulation and Agreement) for approval by the Missouri Public Service Commission (Commission). 
BACKGROUND
1.	On August 1, 2002, UE submitted proposed tariff sheets dealing with natural gas aggregation for schools pursuant to § 393.310 RSMo Supp. 2002.  The sheets bore a proposed effective date of November 1, 2002.  
2.	On August 13, 2002, a procedural conference was held, and the date of August 26, 2002, was set for the submission of a proposed procedural schedule.  On August 22, 2002, the Commission granted the Association intervention.  On August 23, 2002, a technical conference involving all of the parties was held.  On August 26, 2002, a proposed procedural schedule in this case was filed by the Staff.  The Procedural Schedule was adopted by the Commission on August 29, 2002.  
	3.	The parties have held several discussions concerning the content of the proposed tariff, the intentions of the General Assembly in passing the new legislation, and the most practical means to accomplish the intention of the legislation.  As a result of those discussions, the parties have agreed to the following Stipulation and Agreement, which resolves all issues in this proceeding in the manner set out herein.
RESOLUTION OF ISSUES
	4.	Tariff Sheets.  The parties agree that the Commission should approve the illustrative tariff sheets shown in Appendix A, attached hereto, and should issue an order authorizing the filing by UE of tariff sheets which are identical in content to the illustrative sheets shown in Appendix A to be effective on November 1, 2002.  The Commission is required by the new legislation to act on the proposed sheets by November 1, 2002.  As indicated, the proposed sheets would institute new procedures for the transportation of natural gas by school districts on an experimental basis.  Those particular dates are requested to minimize the amount of effort and cost needed to institute this new program.  The Association desires that the sheets take effect at the earliest practical time. 
	5.	Revenue Impact.  The parties believe that the agreed-upon changes to UE’s transportation procedures reflected in the proposed tariff sheets will not result in a material change to its revenue requirement.
	6.	Reporting Requirements.  UE shall, no later than June 1st of each year of the experimental program, provide records of the revenues generated and expenses incurred as a result of this experimental program.  These records shall be provided to the Staff and OPC and shall be categorized in sufficient detail to permit the Staff and OPC to determine what under - or over-recovery of expenses may be taking place at that time and determine if any action may be appropriate at that time to prevent any harm to the groups identified in Section 393.310 RSMo Supp. 2002.  The statute provides that the Commission may, no later than November 1st of each year of the experimental program, implement any adjustments in aggregation or balancing fees deemed appropriate to comply with Section 393.310 RSMo Supp. 2002.
	7.	Legislative Requirements.   
		A.	The new legislation provides that the Commission “shall approve such tariffs upon finding that implementation of the aggregation program set forth in such tariffs will not have any negative financial impact on the gas corporation, its other customers or local taxing authorities, and that the aggregation charge is sufficient to generate revenue at least equal to all incremental costs caused by the experimental aggregation program.” § 393.310.5 RSMo Supp. 2002.
		B.	The parties have discussed the intentions of the sponsors and drafters of this legislation and have also discussed latent internal inconsistencies in the legislation, including, but not limited to, the conflict between the “hold harmless” provisions in subsection 5 and the specific price cap provision for an “aggregation and balancing fee” in subdivision (2) of subsection 4.  The parties have also discussed practical alternatives which are consistent with the overall intention of the legislation to launch an experimental program to afford a means of natural gas aggregation and transportation to school districts and individual schools in the state.
		C.	The parties have also discussed the findings the Commission is required by § 393.310.5 RSMo Supp. 2002 to make in order to approve the proposed tariffs, and to aid the Commission in making such findings, respectfully state as follows:
			1.	The parties agree that the illustrative tariff sheets in Appendix A have been designed to preclude material financial impacts on local taxing authorities by requiring eligible school entities to agree to pay local taxes or similar fees in a manner similar to the way such taxes are levied on sales customers. 
			2.	The parties agree that the illustrative tariff sheets in Appendix A have been designed to preclude negative, material financial impacts on UE.
			3.	The parties agree that the illustrative tariff sheets in Appendix A have been designed to preclude negative, material financial impacts on the other customers of UE, since there are no changes to the rates being paid by UE’s other customers. 
	8.	Reservations Due to Nature of Experiment.  The parties acknowledge that UE’s actual experience under this experimental program may be considerably different from the estimates which were, of necessity, used in the development of the provisions.  The parties also acknowledge that, as with any new piece of legislation, there may be unforeseen complications or circumstances which no party has yet discovered or fully appreciated.  As a result, and giving due consideration to the legislative directive that this experiment “not have any negative financial impact on the gas corporation, its other customers or local taxing authorities,” the parties agree that they will not seek to unreasonably delay the implementation of changes which UE may propose to the provisions shown in Appendix A if the actual implementation of the program varies significantly from what was originally contemplated and UE is experiencing negative financial impacts as a result of implementing or offering this program.  No party shall oppose any reasonable request by UE for expedited treatment of such changes. 
GENERAL PROVISIONS
	9. 	Reservations.  
		A.	This Stipulation and Agreement has resulted from extensive negotiations among the parties and the terms hereof are interdependent.  In the event the Commission does not adopt this Stipulation and Agreement in total, then this Stipulation and Agreement shall be void and no party shall be bound, prejudiced, or in any way affected by any of the agreements or provisions hereof.  The stipulations herein are specific to the resolution of this proceeding, and all stipulations are made without prejudice to the rights of the parties to take other positions in other proceedings, or in this proceeding should the Commission decide either not to approve this Stipulation and Agreement or to in any way condition its approval of same.
		B. 	It is specifically understood and agreed that this Stipulation and Agreement represents a negotiated settlement of the issues in this proceeding settled in a manner that is in the public interest.  Neither UE, the Association, the Commission, its Staff, nor the OPC, shall be deemed to have approved, accepted, agreed, or consented to any accounting principle, ratemaking principle or cost of service determination underlying, or supposed to underlie any of the issues provided for herein.
		C.	All parties further understand and agree that the provisions of this Stipulation and Agreement relate only to the specific matters referred to herein, and no party or person waives any claim or right which it otherwise may have with respect to any matters not expressly provided for in this Stipulation and Agreement.
	10.	Contingent Waiver of Rights.  In the event the Commission accepts the specific terms of this Stipulation and Agreement, the parties waive with respect to the issues resolved herein: their respective rights pursuant to Section 536.070(2), RSMo 2000 to call, examine and cross-examine witnesses; their respective rights to present oral argument or written briefs pursuant to Section 536.080.1, RSMo 2000; their respective rights to the reading of the transcript by the Commission pursuant to Section 536.080.2, RSMo 2000; their respective rights to seek rehearing pursuant to Section 386.500, RSMo 2000; and their respective rights to judicial review pursuant to Section 386.510, RSMo 2000.  If this Stipulation and Agreement is not approved by the Commission, the parties request that a procedural schedule be established which provides for the filing of testimony and a hearing, to include the opportunity for cross-examination.
	11.	Staff’s Rights.  
		A.	The Staff shall file suggestions or a memorandum in support of this Stipulation and Agreement and the other parties shall have the right to file responses within five (5) days of receipt of Staff’s supporting pleading.  The parties agree that any and all discussions related to this Stipulation and Agreement shall be privileged and shall not be subject to discovery, admissible in evidence, or in any way used, described or discussed in any proceeding, except as expressly specified herein.  The contents of any memorandum provided by any party are its own and are not acquiesced in or otherwise adopted by the other signatories to this Stipulation and Agreement, whether or not the Commission approves and adopts this Stipulation and Agreement.
		B.	The Staff shall also have the right to provide, at any agenda meeting at which this Stipulation and Agreement is noticed to be considered by the Commission, whatever oral explanation the Commission requests, provided that the Staff shall, to the extent reasonably practicable, promptly provide other parties with advance notice of when the Staff shall respond to the Commission’s request for such explanation once such explanation is requested from Staff.  Staff’s oral explanation shall be subject to public disclosure, except to the extent it refers to matters that are privileged or protected from disclosure pursuant to any Protective Order issued in this case.
	12.	Provision of Additional Information.  To assist the Commission in its review of this Stipulation and Agreement, the parties also request that the Commission advise them of any additional information that the Commission may desire from the parties relating to the matters addressed in this Stipulation and Agreement, including any procedures for furnishing such information to the Commission.
	13.	Suspension of Procedural Schedule; Admission of Pre-filed Testimony.  The parties ask that, in view of this Stipulation and Agreement, the Commission suspend the balance of the procedural schedule and admit the pre-filed testimony filed by the parties into the record.
	WHEREFORE, the undersigned parties respectfully request that the Commission issue its Order:
	a)	Approving all of the specific terms and conditions of this Stipulation and Agreement; 
	b)	Suspending the procedural schedule; 
	c)	Admitting the pre-filed testimony into the record; and,
	d)	Granting such further relief as the Commission should find reasonable and just.

						Respectfully submitted,
						DANA K. JOYCE
						General Counsel

						/s/ Robert V. Franson
	__________________________________________
						Robert V. Franson 	MBE # 34643
						Associate General Counsel
						Missouri Public Service Commission
						P.O. Box 360
						Jefferson City, MO 65102
					Tel:   573 751-6651
						Fax:   573 751-9285
						Email: robertfranson@psc.state.mo.us
						
Attorney for the Staff of the Public Service 			Commission

						/s/ Thomas M. Byrne
						__________________________________________
					Thomas M. Byrne MBE #33340			
Associate General Counsel			
Ameren Service Company			
1901 Chouteau Avenue			
P. O. Box 66149 (MC 1310)		
St. Louis, MO  66149-6649			
(314) 554-2514				
(314) 554-4014 (Fax)	
tbyrne@ameren.com	
					
Attorney for Union ElectricCompany d/b/a AmerenUE

						/s/ Douglas E. Micheel
	__________________________________________
						Douglas E. Micheel   MBE #38371
						Senior Public Counsel
						P.O. Box 7800, Suite 650
						Jefferson City, MO  65102
						(573) 751-5560   Telephone
						(573) 751-5562 (Fax)
						Email:  

						Attorney for the Office of the Public Counsel

						
/s/ Richard S. Brownlee
__________________________________________
						Richard S. Brownlee III         MBE # 22422
						221 Bolivar Street, Suite 300
						P.O. Box 1069
						Jefferson City, MO 65102
						Tel: 573 636-8135
						Fax: 573 636-4905
						Email:  richardb@hendrenandrae.com

Certificate of Service

I hereby certify that copies of the foregoing have been mailed, hand-delivered, transmitted by facsimile or e-mailed to all counsel of record this Thursday, September 26, 2002.

						/s/ Robert V. Franson
						__________________________________________