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Ameren Illinois Utilities Report Lower Natural Gas Prices, Adequate Supplies as 2008-09 Heating Season Begins
Utilities Offer Advice on Reducing Energy Bills

PEORIA, Ill., Oct. 21 /PRNewswire-FirstCall/ -- Ameren Illinois Utilities natural gas customers will see a significant drop in the cost of natural gas as the 2008-09 heating season begins, while the utilities are continuing to encourage customers to take the steps that will allow them to spend less by using less energy.

The drop in prices is the result of the softening worldwide demand for energy that has led to a reduction in the market prices of both crude oil and natural gas.

The cost of natural gas paid by residential customers during November will be much lower than the price paid in October. Natural gas prices for November 2008 are as follows: AmerenCILCO -- $0.95 per therm as compared to $1.29 in October 2008, AmerenCIPS -- $0.95 per therm as compared to $1.21 in October 2008, and AmerenIP -- $0.93 per therm as compared to $1.44 in October 2008, reflecting decreases of 27 percent, 22 percent and 35 percent respectively.

"The price of natural gas fluctuates from one month to the next based on supply and demand. Global economic conditions have weakened demand, resulting in lower costs. We are cautiously optimistic that natural gas market prices will remain lower than originally predicted throughout this heating season. The Ameren Illinois Utilities currently have the majority their natural gas supplies hedged or 'price protected' for the upcoming winter to insulate customers from market uncertainty," said Ameren Vice President of Gas Supply and System Control Scott A. Glaeser.

"While these lower than predicted costs are good news, we recognize and are concerned about the impact natural gas prices may have on our customers," Glaeser said. "We will continue to do all we can to make certain our customers understand this issue and have the information they need to better manage their energy usage."

The Ameren Illinois Utilities are energy delivery companies. As such, they must purchase natural gas from producers for delivery to their customers. The wholesale price paid to producers is not regulated, but rises and falls based upon market conditions caused by supply and demand. The Ameren Illinois Utilities do not profit from the cost of natural gas paid by customers.

Glaeser stressed that the Ameren Illinois Utilities have secured adequate natural gas supplies to meet customer needs during the 2008-09 heating season.

Customers are encouraged to adopt proven energy conservation practices that will help reduce bills without sacrificing personal comfort. With colder weather approaching, customers are urged to apply caulk and weather stripping to block drafts. Furnaces and flues should be inspected and cleaned annually by a heating system professional to make certain systems are safe and operating efficiently.

To reduce bills, set the water heater temperature at 120 degrees Fahrenheit or on "low." Using this setting can reduce annual energy costs by 3 to 5 percent. When away from home for an extended period of time, select the "vacation" setting if the unit is so equipped.

Hot water usage can be reduced by using cold or warm water in the washing machine, a step that saves money and can extend the life of clothing. Get more life out of the water heater and reduce energy costs by periodically draining the tank to eliminate the buildup of sediment.

A list of conservation suggestions is available on the Ameren Web site (http://www.ameren.com/) in the "My Home" section under "Energy Savings Tips." There also are conservation tips at the new http://www.actonenergy.net/ Web site. (Note: See addendum to this release for conservation tips.)

Customers may enroll in the Budget Billing plan as a way to better manage their energy bills. This plan allows residential customers to pay the same amount each month. By enrolling now, customers can begin leveling out their monthly payments. The plan allows customers to pay an average monthly bill amount based on the last 12 months of usage. The payment level is periodically reviewed and adjusted as necessary. On the 12th month, the account is reviewed to calculate the difference between the amount of energy used during the year and the amount paid under Budget Billing. If the amount paid exceeds the actual cost of providing the energy, the customer receives a credit. If the amount billed is less than the actual cost of providing the energy, the customer is billed for the difference.

Customers may enroll in Budget Billing by visiting Ameren's Web site or by calling their Ameren Illinois Utility company (AmerenCIPS: 1-888-789-2477, AmerenCILCO: 1- 888-672-5252, and AmerenIP: 1-800-755-5000). Customers may enroll in the program or drop out at any time. There is no cost to enroll in Budget Billing.

The Ameren Illinois Utilities serve 1.2 million electric and more than 840,000 natural gas customers in a 43,700-square-mile area of Illinois.

  Heating Season Tips from the Ameren Illinois Utilities

  Saving Money Today
  -- You can save 2 to 3 percent on your heating costs for each degree you
     lower your thermostat during the heating season.
  -- Install a programmable thermostat to automatically adjust your home's
     temperature settings when you are away or sleeping.
  -- Never place a thermostat on an exterior wall, where it may be affected
     by outdoor temperatures.
  -- Consider replacing a thermostat that is 10 years old or older with a
     newer model for greater accuracy and efficiency.
  -- Regularly change or wash (depending on type) furnace filters.  This is
     especially important if you have pets.
  -- Take advantage of solar heat by opening curtains, blinds and shades on
     sunny days.  Close curtains, blinds and shades at night.
  -- Have your heating system checked and serviced by a professional before
     the start of the heating system.  Improperly operating fossil fuel
     furnaces can pose serious health and safety hazards, as well as use
     more energy. Fireplace and wood-burning stove flues should be inspected
     and cleaned by a professional, as well.
  -- Check for heating system duct air leaks.  Begin by sealing ducts that
     run through the attic, crawlspace, unheated basement or garage by using
     duct sealant (mastic) or metal-backed (foil) tape to seal the seams and
     connections of ducts. After sealing the ducts in those spaces, wrap the
     ducts in insulation to keep them from getting hot in the summer or cold
     in the winter.  Next, seal ducts that you can access in the heated or
     cooled part of the house.  Properly sealed ducts can improve your
     heating system's efficiency by up to 20 percent.
  -- Replace incandescent bulbs with ENERGY STAR qualified compact
     fluorescent lights (CFLs).  Unlike incandescent bulbs, CFLs emit little
     heat and last seven or more years.
  -- Use low-cost ceiling fans or other types of circulating fans. Fans help
     to evenly distribute air, eliminating both hot and cold spots.
  -- Set the water heater thermostat to the 120 degrees Fahrenheit (or
     "low") setting.  Higher temperatures not only are unnecessary, but pose
     a safety hazard for children.  Use the "vacation" or "standby" setting
     when away from home for an extended period of time.
  -- Follow the manufacturer's guidelines to drain a quart of water from the
     water heater every 3 month to remove sediments that cause the water
     heater to use more energy.
  -- When not in use, keep fireplace and wood stove dampers closed.

  Look in on others

-- Check in on the elderly and those with medical conditions to make certain they are safe and comfortable.

  Saving Money Tomorrow
  -- There is no substitute for insulation.  Add insulation if attic floor
     joists are visible.
  -- Use of weather-stripping and caulking helps prevents drafts, keeping
     homes warmer while saving energy.
  -- Make certain exterior doors have a tight fit.
  -- Look for the ENERGY STAR qualified label when buying appliances,
     lights, heating and cooling equipment, doors, windows, home electronic
     products, office equipment and more. Americans, with the help of ENERGY
     STAR, saved enough energy in 2007 alone to avoid greenhouse gas
     emissions equivalent to those from 27 million cars -- all while saving
     $16 billion on their utility bills.  For information, call 1-888-STAR-
     YES or visit: http://www.energystar.gov/.
  -- Significant savings can be realized by installing a high-efficiency
     heating system.  An ENERGY STAR qualified high-efficiency heating
     system can save you up to 20 percent on energy costs.
  -- The Ameren Illinois Utilities recommend customers enroll in the Budget
     Billing plan.  This free service allows customers to pay the same
     amount each month of the year.  Customers can enroll on the Ameren Web
     site (http://www.ameren.com/) or by calling toll-free 888-789-2477.
  -- Plant trees around the house.  Trees substantially reduce energy use by
     shading roofs and walls from the summer sun and serving as a barrier
     against winter winds.  For a free copy of "Planting Trees" for more
     details on proper tree selection, send an e-mail request to

SOURCE: Ameren Illinois Utilities

CONTACT: Leigh Morris, +1-217-535-5228, or Neal Johnson,
+1-309-677-5284, or Victoria Busch, +1-618-346-1286, all of Ameren Illinois

Web site: http://www.ameren.com/