Gary Rainwater, as
president of Ameren Corporation, created new nonregulated generating,
marketing and fuels services organizations in 2000 under the holding company,
AmerenEnergy Resources.
AmerenEnergy Resources
has four subsidiaries:
* AmerenEnergy Development
- a generation development company;
* AmerenEnergy Generating Company, operator of more than 3,500 megawatts
of generating capacity;
* AmerenEnergy Marketing, charged with selling the generating company's
power in the deregulated Illinois and Midwest
markets; and
* AmerenEnergy Fuels & Services, supplier of coal, natural gas, oil, ash
management and emission services for its affiliated
companies and other customers in Midwest energy markets.
Based in St. Louis,
Ameren Corporation companies provide energy services to 1.8 million customers
in a 44,500-square-mile area of Missouri and Illinois. AmerenUE is the
largest electric utility in Missouri and the third largest distributor
of natural gas. Both an electric and natural gas utility, AmerenCIPS serves
a 20,000-square-mile territory - the largest geographic area of any Illinois-based
utility company.
The transfer to the
nonregulated AmerenEnergy Generating Company of the five existing plants
of AmerenCIPS--representing 2,900 megawatts of capacity-formed the nucleus
of Ameren's nonregulated power producer. In 2000, Ameren created AmerenEnergy
Development which
* develops strategic
plans for new generation sites,
* evaluates and initiates upgrades to existing facilities,
* analyzes and recommends future capacity expansion for Ameren and
* acquires equipment and sites, obtains permits and development agreements
with local, state and federal authorities.
In 2000, the development
company expanded Ameren's generating capacity by approximately 630 megawatts
with the start-up of almost a dozen combustion turbine generating units
sited in Illinois. And the company plans to expand its nonregulated generation
by adding another 2,400 of planned new capacity by 2005-nearly 850 megawatts
of this total is expected to be available for the 2001 summer season.
The company's regulated
utility with 325,000 electric customers, AmerenCIPS, will buy energy from
the marketing subsidiary through 2004 to supply its regulated customers
in Illinois.
"The combination
of coal-fired plants for base-load periods, and gas-fired plants for peak
periods, is a very cost-effective strategy," says AmerenEnergy Resources
President Gary Rainwater. "The creation of AmerenEnergy Resources
has offered Ameren the opportunity to build an energy company that combines
generation, trading and marketing and fuels services expertise on the
platform of a financially strong, asset-based corporation."
"The five existing
AmerenCIPS plants, combined with the combustion turbines, are well suited
to operate as a nonregulated power producer," Rainwater adds. "They
have wide variations in size and design, giving them added flexibility.
In addition, these units are located across a geographically far-flung
area of Illinois, with access to many customers through interconnected
transmission ties. Most importantly, each of these plants is staffed by
experienced and dedicated personnel who are aware of the challenges of
competition and are prepared to meet those challenges."
On the marketing
side, Andrew Serri, vice president of AmerenEnergy Marketing, says the
new company is a natural addition to AmerenEnergy's efforts to help Ameren
Corporation succeed in an increasingly competitive environment.
"AmerenEnergy's
current operations will necessarily complement the business that AmerenEnergy
Resources conducts. In the short term, energy produced by AmerenEnergy
Resources is sold through the corporation's trading operation-AmerenEnergy--in
the wholesale markets. However, through AmerenEnergy Marketing, we are
effectively balancing our strong wholesale activities with longer term
sales to municipalities, cooperatives, and larger retail customers in
the commercial and industrial sectors-and we are looking at resource and
sales opportunities outside our traditional service territory."
Evidence of the strategy
at work is the fall of 2000 contract AmerenEnergy Marketing forged with
Illinois Energy consortium. Through this contract, Ameren began supplying
energy this fall to 500 school buildings and 120 school districts in Illinois.
AmerenEnergy Resources
third subsidiary, AmerenEnergy Fuels and Services Company, directed by
Vice President Michael G. Mueller, provides approximately $1 billion in
fuel procurement and gas supply services for its affiliated companies
and other customers in the Midwest energy markets. It supplies coal, natural
gas, oil, ash management and emission services to Ameren's 12,000 megawatts
of generating capacity and manages the supply of natural gas to Ameren's
300,000 retail gas customers.
The Ameren fuels
organization annually buys, trades and transports 30 million tons of coal
from the Powder River and Illinois basins. The organization operates a
fleet of more than 5,000 railcars and is constructing new coal trans-load
facilities on the Mississippi River.
"The creation
of AmerenEnergy Fuels and Services enhances Ameren's competitive position
in the Midwestern energy markets," said Mueller.
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