ST. LOUIS, July 12 /PRNewswire-FirstCall/ -- AmerenUE, a utility operating company of Ameren Corporation (NYSE: AEE), plans to invest $1 billion over the next three years to improve reliability, upgrade delivery systems, and enhance the environmental performance of its power plants.
"With the severe weather patterns of the past few years and a focus on improving air quality, we are working even harder to ensure reliability for our customers of today and tomorrow," said Thomas R. Voss, president and chief executive officer of AmerenUE. "We've been working closely with community officials and leaders across our system to determine the best approach for improving our delivery system, while ensuring that we meet the growing demand for energy."
Named "Project Power On," this three-year initiative involves a commitment over and above the $500 million per year the company has been spending on efforts to upgrade and maintain the system.
Project Power On involves four components designed to address the region's current and future energy and environmental needs. These include:
-- $300 million over three years for undergrounding and reliability
improvement -- AmerenUE is planning to increase company spending by
$100 million per year to better protect the system against severe
weather. This includes a substantial underground cabling effort in
neighborhoods most at risk of electric service disruption and where
undergrounding is feasible, improves reliability, and makes economic
sense.
-- $135 million over three years ($45 million annually) for tree-trimming
-- Nearly twice the budget of a few years ago, AmerenUE is pursuing a
more aggressive tree removal and trimming plan that will include
trimming on private property with the property owner's consent. This
program targets electric lines built to serve new developments over the
past four decades; many new trees planted during that time now
jeopardize the system in severe weather. The company will continue to
work with local governments on ways to handle tree issues both on
public lands and private property.
-- $84 million over three years (approximately $28 million per year) for
circuit and device inspection and repair -- AmerenUE is increasing the
frequency of pole repair and replacement and establishing a "foot
patrol" inspection program, in addition to the visual inspection done
by tree-trimming staff. This aggressive preventive maintenance will
help identify, repair, and/or replace poles and other equipment prior
to failure. The company is expanding its pole and line inspection
programs to include all poles. These efforts will be supported by new
technology that allows crews to check the integrity of lines throughout
the distribution system.
-- $500 million over three years to address the growing energy needs of
the region by installing environmental controls on existing plants so
that they meet or do better than federal environmental standards -- The
U.S. Environmental Protection Agency (EPA) Clean Air Interstate Rule
(CAIR) calls for reductions of nitrogen oxide emissions by 70 percent
and sulfur dioxide by 65 percent - both by 2015 - and the Clean Air
Mercury Rule (CAMR) calls for mercury emission reductions of 70 percent
by 2018. With this $500 million investment, AmerenUE expects to improve
air quality for future generations. Most of the funding will go toward
installing scrubbers at AmerenUE's Sioux Plant, helping AmerenUE
achieve compliance with EPA and state requirements.
"We know what our customers want," Voss said. "When they flip a switch, they want the lights to come on, and these initiatives will help us reliably supply that electricity -- now and into the future. A significant part of this goal is continuing our environmental leadership role, ensuring our plants are clean and efficient, while addressing the increasing energy needs of our region."
Voss added that, in addition to committing funding for a range of projects, the company has appointed a full-time project manager as the primary contact for this effort. In April, AmerenUE hired an experienced consultant to help evaluate its reliability and storm response. KEMA Inc. has extensive experience in the areas of emergency response, reliability, and maintenance practices. KEMA will develop a Storm Adequacy Study that will be shared with regulators.
Voss stressed that AmerenUE continues to welcome a public dialogue to determine future actions and investments that are necessary to prepare the AmerenUE system for severe storms. He said that working with the regulators, community leaders, and customers will be key in determining the best public policy approach to investment in greater reliability.
With 1.2 million customers, AmerenUE is Missouri's largest electric company and third largest provider of natural gas. Ameren, through its operating companies, serves 2.4 million electric and 1 million natural gas customers in a 64,000-square-mile area of Illinois and Missouri.
FORWARD-LOOKING STATEMENTS
Statements in this release not based on historical facts are considered "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, we are providing this cautionary statement to identify important factors that could cause actual results to differ materially from those anticipated. The following factors, in addition to those discussed elsewhere in this release and in our filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations suggested in such forward-looking statements:
-- Regulatory or legislative actions, including changes in regulatory
policies and ratemaking determinations
-- Changes in laws and other governmental actions, including monetary and
fiscal policies
-- Business and economic conditions, including their impact on interest
rates
-- Disruptions of the capital markets or other events that make access to
necessary capital more difficult or costly
-- Actions of credit rating agencies and the effects of such actions
-- Weather conditions and other natural phenomena
-- The impact of system outages caused by severe weather conditions or
other events
-- Generation plant construction, installation, and performance
-- The impact of current environmental regulations on utilities and power
generating companies and the expectation that more stringent
requirements, including those related to greenhouse gases, will be
introduced over time, which could have a negative financial effect
-- Legal and administrative proceedings
-- Acts of sabotage, war, terrorism, or intentionally disruptive acts
Given these uncertainties, undue reliance should not be placed on these forward-looking statements. Except to the extent required by the federal securities laws, we undertake no obligation to update or revise publicly any forward-looking statements to reflect new information or future events.
Project Power On
Undergrounding Project Investment by County
Missouri County Customers Three-Year
Investment
SAINT LOUIS 486,621 $121,032,000
SAINT LOUIS CITY 179,770 $44,709,000
SAINT CHARLES 119,420 $29,700,000
JEFFERSON 85,428 $21,246,000
FRANKLIN 43,734 $10,890,000
COLE 29,276 $7,287,000
SAINT FRANCOIS 25,814 $6,405,000
CAPE GIRARDEAU 24,218 $6,024,000
CAMDEN 21,923 $5,451,000
LINCOLN 11,493 $2,865,000
WASHINGTON 10,782 $2,688,000
ADAIR 10,690 $2,667,000
RANDOLPH 10,679 $2,664,000
SCOTT 9,203 $2,295,000
WARREN 8,982 $2,241,000
MILLER 8,600 $2,145,000
PEMISCOT 8,312 $2,073,000
PIKE 7,872 $1,962,000
STODDARD 7,592 $1,893,000
AUDRAIN 7,585 $1,890,000
MORGAN 6,918 $1,725,000
CLAY 6,694 $1,668,000
COOPER 6,159 $1,536,000
MISSISSIPPI 5,408 $1,350,000
NEW MADRID 5,415 $1,350,000
MONTGOMERY 5,183 $1,293,000
IRON 5,101 $1,272,000
CALLAWAY 4,637 $1,155,000
BOONE 3,723 $927,000
DUNKLIN 3,558 $888,000
LINN 3,475 $867,000
CALDWELL 3,020 $753,000
LEWIS 2,821 $702,000
OSAGE 2,796 $696,000
GASCONADE 2,454 $612,000
CLINTON 2,414 $603,000
MONITEAU 2,048 $510,000
MARIES 1,656 $414,000
RAY 1,644 $411,000
KNOX 1,504 $375,000
DEKALB 1,318 $330,000
RALLS 1,170 $291,000
CLARK 953 $237,000
HOWARD 866 $216,000
SCHUYLER 690 $171,000
SULLIVAN 673 $168,000
MONROE 664 $165,000
LIVINGSTON 444 $111,000
PETTIS 347 $87,000
DAVIESS 342 $84,000
MADISON 320 $81,000
BUTLER 1 $75,000
CHARITON 2 $75,000
DENT 3 $75,000
GENTRY 89 $75,000
MACON 3 $75,000
MARION 74 $75,000
PHELPS 3 $75,000
REYNOLDS 14 $75,000
SAINTE GENEVIEVE 72 $75,000
SALINE 113 $75,000
SCOTLAND 233 $75,000
Total 1,203,016 $300,000,000
SOURCE: Ameren Corporation
CONTACT: media, Tim Fox, +1-314-554-3120, or Mike Cleary,
+1-573-681-7137, or investors, Bruce Steinke, +1-314-554-2574, all of Ameren
Corporation
Web site: http://www.ameren.com/