ST. LOUIS, May 22 /PRNewswire-FirstCall/ -- AmerenUE, an operating company of Ameren Corporation (NYSE: AEE), today received a ruling from the Missouri Public Service Commission (MoPSC) granting the company its first electric rate increase in 20 years. This approximately $43 million increase challenges the company's ability to cover rising costs and make needed energy infrastructure investments.
AmerenUE electric rates are 37 percent below the national average and have dropped 13 percent in those 20 years.
The ruling would mean electric rates for an average residential customer will increase by about $2.33 a month. With this increase, a residential customer using approximately 1,000 kilowatthours of electricity monthly will still be paying about $7 less a month than in December 1987-when the last electric rate increase for AmerenUE took effect.
"We are obviously disappointed with this ruling," says Thomas R. Voss, president and chief executive officer of AmerenUE. "We have presented strong support for our rate request, and as we told the Commission, in response to customer needs and requests, we have been working to improve and expand our infrastructure at considerable cost. We have done this while meeting increasingly stringent environmental regulations. We have also seen significant increases in fuel and materials costs, and we have also contributed millions of dollars to support programs for energy conservation and low-income energy assistance. The limited rate increase approved today will make future investment in these programs and in our system very challenging."
Voss added that the company will review the entire ruling as it continues to focus on providing reliable energy and service to our customers. AmerenUE has not yet decided if the company will seek a rehearing on certain provisions of the ruling.
AmerenUE is a subsidiary of St. Louis-based Ameren Corporation. The Ameren companies serve 2.4 million electric customers and nearly one million natural gas customers in a 64,000-square-mile area of Missouri and Illinois.
Statements made in this release, which are not based on historical facts, are "forward-looking" and accordingly, involve risks and uncertainties that could cause actual results to differ materially from those discussed. Although such "forward-looking" statements have been made in good faith and are based on reasonable assumptions, there is no assurance that the expected results will be achieved. These statements include (without limitation) statements as to future expectations, beliefs, plans, strategies, objectives, events, conditions and financial performance. In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the company is providing this cautionary statement to identify important factors that could cause actual results to differ materially from those anticipated. The factors discussed elsewhere in this release and the company's past and subsequent filings with the Securities and Exchange Commission could cause actual results to differ materially from management expectations suggested in such forward-looking statements.
CONTACT: Media, Susan Gallagher, +1-314-554-2175, Tim Fox
+1-314-554-3120, Mike Cleary, +1-573-681-7137, all for AmerenUE; Analysts,
Bruce Steinke, +1-314-554-2574, firstname.lastname@example.org, Investors, Investor
Services, +1-800-255-2237, email@example.com , both of AmerenUE
Web site: http://www.ameren.com/