St. Louis-based Ameren Corp. announced an asset transfer among several of its subsidiaries of about 550 MW in power generation, as well as some gas and electric distribution and transmission assets last week.
Subsidiary AmerenUE transferred electric distribution and transmission assets and natural gas distribution assets, along with about 100 personnel, to AmerenCIPS for net book value of $138 million. And to meet current generation capacity needs, AmerenEnergy Generating Co. transferred 550 MW of peaking combustion turbines at Pinckneyville and Kinmundy, IL, to AmerenUE for net book value of $240 million. The generation transfer completes AmerenUE's 2002 Missouri electric rate case settlement commitment. All of the asset transfers have been approved by regulators.
"This initiative will allow us to more effectively allocate our energy resources, and it will help us reduce future administrative costs," said Ameren CEO Gary L. Rainwater. "Consolidating the two Illinois territories establishes a clean division between Illinois and Missouri for AmerenUE and AmerenCIPS. This action reflects our commitment to reducing costs, increasing efficiency and ensuring reliable energy supply."
Ameren said the consolidation of its Illinois gas and electric distribution and transmission assets won't impact reliability or rates for any customer class. AmerenUE's Illinois operations provide natural gas to 18,000 customers and electricity to 62,000 customers in four southwestern Illinois counties: Jersey, Macoupin, Madison and St. Clair. AmerenUE's electric generating facilities and some of its electric transmission and communications facilities in Illinois were not part of the transfer.
Ameren serves a total of 3.2 million customers in Missouri and Illinois through utility subsidiaries AmerenCIPS, AmerenCILCO, AmerenIP and AmerenUE.
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