AmerenCIPS transferred $600 million in power generationfacilities (2,900 MW) to a newly created nonregulated Ameren Corp.subsidiary, AmerenEnergy Generating Co. The generation holdings ofthe new unit are expected to balloon to 5,400 MW and $1.7 billionin book value by 2005, the company said, noting it is in theprocess of building another 2,500 MW.

The five existing AmerenCIPS power plants being transferred areall located in Illinois. The power will be marketed by anonregulated affiliate, AmerenEnergy Marketing Co.

“As the nation’s 17th largest generator, our company isexpanding and capitalizing on a core company strength – low-cost,highly reliable generation – and on our strategic position in aneconomically strong region,” said Ameren CEO Charles W. Mueller.”This action reflects our commitment to significantly growing thegeneration portion of our business and expanding it beyond ourtraditional service area.”

The new generating subsidiary, as well as the transfer ofAmerenCIPS’ generating assets and liabilities and certain powersales contracts, have won approvals from various state and federalregulatory agencies. The creation of the new subsidiary will haveno negative impact on the existing electric customers ofAmerenCIPS, the company said. AmerenCIPS has in place a long-termpower purchase agreement with the new generating company, whichwill provide energy supply reliability and energy price stability.

St. Louis-based Ameren’s provides energy services to 1.8 millioncustomers in Missouri and Illinois.

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