Investor Presentation - September 2021
Alabama regulatory summary
•
Top-rated regulatory jurisdiction by RRA
Rate Stabilization and Equalization (RSE) annual rate-setting process
RSE parameters evaluated every four years
.
Spire Alabama RSE reset - Oct. 1, 2022
Spire Gulf RSE reset - Oct. 1, 2021
- Rates set based on forward-year budget, retained
shareholders' equity, and current recovery of planned capex
Spire Alabama: 10.40% allowed ROE and 55.5% equity ratio
Spire Gulf: 10.7% allowed ROE and 55.5% equity ratio
• Cost Control Measurement (CCM)
Incentive to manage O&M costs relative to target benchmark
and provide for cost-sharing with customers outside of band.
Good recovery mechanisms
Spire Alabama
O&M per customer
2018
Gas costs, weather normalization and certain other non-recurring costs
75% Company
25% Customer
1.5%
Cost Target
1.5%
50% Company
50% Customer
Opportunity for enhanced return for pipeline replacement (Spire Alabama's AIM – 10 bp additional
ROE) and certain infrastructure investments (Spire Gulf's CIMFR)
Spire Alabama Off-System Sales and Capacity Release - 75%/25% value sharing with customers
Alabama Public Service Commission - commissioners elected to 4-year term
Twinkle Andress Cavanaugh, President (R) - 2024
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Chris "Chip" Beeker (R) – 2022
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Jeremy H. Oden (R) - 2022
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