Federal Energy Regulatory Commission Approval Will Help Ameren Transmission
Company of Illinois Bolster Infrastructure, Improve Reliability, Create Jobs
ST. LOUIS, Nov. 19, 2012
ST. LOUIS, Nov. 19, 2012 /PRNewswire/ --Ameren Transmission Company of
Illinois (ATXI), a wholly owned subsidiary of Ameren Corporation (NYSE: AEE),
received important regulatory approval from the Federal Energy Regulatory
Commission (FERC) to continue to move its Spoon River and Mark Twain
transmission construction projects forward. FERC approved similar regulatory
treatment for the Illinois Rivers transmission project in May 2011.
The three projects are part of the $1.3 billion multi-value projects approved
by the Midwest Independent Transmission System Operator Inc. (MISO) board in
December 2011. MISO is a regional transmission organization serving an
11-state region, including the service territories of the Ameren utilities,
and the Canadian province of Manitoba.
"We are very pleased with FERC's approvals of the incentive regulatory
treatment," said Maureen Borkowski, president and CEO of ATXI. "This approval
paves the way for important new investment by Ameren Transmission Company of
Illinois to deliver renewable energy in the Midwest, promote electric power
reliability, lower costs for consumers by reducing transmission congestion and
create jobs which are important to the economy."
FERC's approved regulatory treatment includes enhanced cost-recovery
mechanisms and protections for Ameren Transmission Company of Illinois that
support the investments and facilitate the cost-effective financing of the
"Growth in our transmission business is a key part of our corporate strategy.
This FERC approval is an important milestone in implementing this strategy,"
said Thomas R. Voss, chairman, president and CEO of Ameren Corporation.
ATXI Project Facts
The Spoon River project in Illinois, preliminarily estimated to cost $208
million, will span approximately 70 miles of new 345-kilovolt transmission
line from Oak Grove to Galesburg, Ill., continuing near Peoria, Ill.
The Mark Twain project in Missouri, preliminarily estimated to cost $155
million, will span approximately 90 miles in Missouri of new 345-kilovolt
transmission line from the Iowa border to Adair, Mo., on to Palmyra, Mo.
The Illinois Rivers project, preliminarily estimated to cost $1 billion, will
span approximately 400 miles with a new 345-kilovolt transmission line,
crossing the Mississippi River near Quincy, Ill., continuing east across
Illinois to the Indiana border. ATXI has filed a petition with the Illinois
Commerce Commission (ICC) for a certificate to build the Illinois Rivers
project. ATXI expects the ICC to issue a decision by mid-2013.
The recent FERC order also approved forward-looking formula rates for Ameren
Illinois Company's transmission facilities. The primary benefit of a
forward-looking formula rate is to provide timely cash flows in order to be
able to efficiently finance investments.
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 under Risk Factors in
Ameren's Form 10-K for the year ended December 31, 2011, and in the Form 10-Q
for the quarter ended September 30, 2012, and elsewhere in this release and in
our other filings with the Securities and Exchange Commission, could cause
actual results to differ materially from management expectations suggested in
such forward-looking statements:
oregulatory, judicial, or legislative actions, including changes in
regulatory policies and recovery mechanisms and ratemaking determinations;
ochanges in laws and other governmental actions, including monetary,
fiscal, and tax policies;
othe effects of increased competition in the future due to, among other
things, deregulation of certain aspects of our business at both the state
and federal levels, and the implementation of deregulation;
oincreasing capital expenditure and operating expense requirements and our
ability to recover these costs;
othe level and volatility of future prices for power in the Midwest;
othe development of a multi-year capacity market within MISO and the
outcomes of MISO's inaugural annual capacity auction in 2013;
obusiness and economic conditions, including their impact on interest
rates, bad debt expense, and demand for our products;
odisruptions of the capital markets, deterioration in our credit metrics,
or other events that make our access to necessary capital, including
short-term credit and liquidity, impossible, more difficult, or more
oour assessment of our liquidity;
otransmission asset construction, installation, performance, and cost
othe effects of our increasing investment in electric transmission projects
and uncertainty as to whether we will achieve our expected returns in a
timely fashion, if at all;
othe effects of strategic initiatives, including mergers, acquisitions and
divestitures, and any related tax implications;
olabor disputes, workforce reductions, future wage and employee benefits
costs, including changes in discount rates and returns on benefit plan
othe inability of our counterparties and affiliates to meet their
obligations with respect to contracts, credit facilities, and financial
olegal and administrative proceedings; and
oacts of sabotage, war, terrorism, cybersecurity attacks or intentionally
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.
St. Louis-based Ameren Corporation owns a diverse mix of electric energy
centers strategically located in our Midwest market, with a generating
capacity of 15,900 megawatts. Through our Missouri and Illinois subsidiaries,
we serve 2.4 million electric customers and more than 900,000 natural gas
customers in a 64,000-square-mile area. Our mission is to meet our customers'
energy needs in a safe, reliable, efficient and environmentally-responsible
manner. For more information, visit Ameren.com.
SOURCE Ameren Corporation
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