Federal Energy Regulatory Commission Approval Will Help Ameren
Transmission Company of Illinois Bolster Infrastructure, Improve
Reliability, Create Jobs
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
projects.
"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.
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 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:
- regulatory, judicial, or legislative actions, including
changes in regulatory policies and recovery mechanisms and
ratemaking determinations;
- changes in laws and other governmental actions, including
monetary, fiscal, and tax policies;
- the 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;
- increasing capital expenditure and operating expense
requirements and our ability to recover these costs;
- the level and volatility of future prices for power in the
Midwest;
- the development of a multi-year capacity market within MISO
and the outcomes of MISO's inaugural annual capacity auction in
2013;
- business and economic conditions, including their impact on
interest rates, bad debt expense, and demand for our
products;
- disruptions 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 costly;
- our assessment of our liquidity;
- transmission asset construction, installation, performance,
and cost recovery;
- the 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;
- the effects of strategic initiatives, including mergers,
acquisitions and divestitures, and any related tax
implications;
- labor disputes, workforce reductions, future wage and
employee benefits costs, including changes in discount rates and
returns on benefit plan assets;
- the inability of our counterparties and affiliates to meet
their obligations with respect to contracts, credit facilities, and
financial instruments;
- legal and administrative proceedings; and
- acts of sabotage, war, terrorism, cybersecurity attacks 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.
About Ameren
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