ST. LOUIS, Dec. 8, 2011 /PRNewswire/ -- Ameren Transmission Company (ATX), a wholly owned subsidiary of Ameren Corporation (NYSE: AEE), will begin work on expansion plans to invest an estimated $1.3 billion over 10 years. The Midwest Independent Transmission System Operator (MISO) announced earlier today that its Board had approved its Transmission Expansion Plan 2011 (MTEP11), which includes the ATX projects.
According to MISO, the total investment for all of the MTEP11 projects is expected to be $6.5 billion over 10 years, including $5.1 billion with respect to 16 multi-value projects (MVPs). Three of those approved MVPs are the ATX projects.
The ATX projects approved by MISO's board are a part of the Grand Rivers projects, consisting of the Illinois Rivers and Spoon River transmission line projects in Illinois and Mark Twain transmission line project in Missouri. These projects address regional transmission needs as well as public policy goals. These projects also increase stakeholder value across the MISO footprint. A robust, regional transmission system enhances competition in power markets and increases consumer access to least-cost generation, regardless of fuel type.
"ATX is pleased to work with MISO to bring much needed transmission expansion and increased access to renewable energy to our region. MISO's approval is an important step for ATX to move forward with the Grand Rivers projects," said Maureen Borkowski, president and CEO, ATX. "These projects will not only benefit Midwest customers, but also create thousands of construction, supplier and other jobs which are so important to our economy today."
The ATX projects approved today by the MISO board consist of:
The Illinois Rivers project, preliminarily estimated to cost $860 million, will span 331 miles with a new 345-kilovolt transmission line, crossing the Mississippi River near Quincy, Ill., continuing east across Illinois to the Indiana border. Key benefits include improved power transfer capability in the region and delivery and integration of renewable generation.
The Spoon River project in Illinois, preliminarily estimated to cost $180 million, will span 70 miles of new 345-kilovolt transmission line from Oak Grove to Galesburg, Ill., continuing near Peoria, Ill. Key benefits include improved reliability in the northwestern Illinois area and integration of renewable generation.
The Mark Twain project in Missouri, preliminarily estimated to cost $230 million, will span 89 miles in Missouri of new 345-kilovolt transmission line from the Iowa border to Adair, Mo., on to Palmyra, Mo. Key benefits include enhanced ability to import power from the upper Midwest and delivery and integration of renewable generation.
MISO is a regional organization serving a 12-state region, including the service territories of the Ameren utilities. MTEP11 is MISO's comprehensive long-term regional plan for the Midwest electric grid that meets the reliability, policy and economic needs of the region, and provides benefits of an economically efficient energy market to MISO stakeholders.
ATX was formed in August 2010 to develop regional transmission projects within the Ameren companies' 64,000-square-mile service territory and throughout the region.
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, 2010, 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 ratemaking determinations, and future regulatory, judicial, or legislative actions that seek to change regulatory recovery mechanisms;
- changes in laws and other governmental actions, including monetary, fiscal, and tax policies;
- the effects of increased competition in the future;
- the effects on demand for our services resulting from technological advances, including advances in energy efficiency and distributed generation sources, which generate electricity at the site of consumption;
- increasing capital expenditure and operating expense requirements and our ability to recover these costs through our regulatory frameworks;
- the effects of our and other members' participation in, or potential withdrawal from, MISO and the effects of new members joining MISO;
- business and economic conditions, including their impact on interest rates, and demand for our products;
- disruptions of the capital markets 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;
- actions of credit rating agencies and the effects of such actions;
- transmission and distribution asset construction, installation, performance, and cost recovery;
- the effects of strategic initiatives, including mergers, acquisitions and divestitures;
- the impact of current environmental regulations on utilities and power generating companies and the expectation that new or more stringent requirements, including those related to greenhouse gases, other emissions, and energy efficiency, will be enacted over time, which could increase our costs, reduce our customers' demand for electricity or natural gas, or otherwise have a negative financial effect;
- the impact of complying with renewable energy portfolio requirements in Missouri;
- legal and administrative proceedings.
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.
With assets of $23 billion, St. Louis-based Ameren Corporation owns a diverse mix of electric generating plants strategically located in our Midwest market, with a generating capacity of more than 16,500 megawatts. Through our Missouri and Illinois subsidiaries, we serve 2.4 million electric customers and nearly 1 million natural gas customers in a 64,000-square-mile area. Our mission is to meet their energy needs in a safe, reliable, efficient and environmentally-responsible manner. For more information, visit Ameren.com.
SOURCE Ameren Corporation