PLAN CALLS FOR LOWER UE RATES

The Missouri Public Service Commission soon will consider a proposal that would reduce Union Electric Co.'s electric rate by $40 million effective Jan. 1, the PSC staff announced.

Filed Aug. 24, the agreement was submitted by UE, the PSC staff, several UE industrial customers and the Office of the Public Counsel. As part of the agreement a rate increase or decrease could only be sought under certain conditions prior to Sept. 1, 1994.

A rate moratorium on UE expires Jan. 1.

PSC staff member Brent Stewart said, "The joint agreement is the result of the staff's ongoing monitoring of the company's financial situation and discussions held with Union Electric on a variety of matters.

"In the staff's opinion, the agreement represents a reasonable approach to the conclusion of the amortization of the Callaway nuclear plant phase-in deferrals at the end of this year and provides rate stability for the company and its customers in 1994," said Sewart.

For an average residential customer using 900 kilowatt hours a month, electric rates would drop by approximately $20 a year under the agreement, the PSC staff said.