8-KOther Events

AMEREN CORP 8-K Report (Oct 3, 2003)

Filed October 3, 2003For Securities:AEE

Summary

Ameren Corporation (AEE) filed an 8-K on October 3, 2003, detailing a significant operational restructuring within its subsidiary, Central Illinois Light Company (AmerenCILCO). AmerenCILCO transferred substantially all of its electric generation assets, including the Duck Creek and E. D. Edwards coal-fired plants and Sterling Avenue combustion turbine facilities, to a newly named non-rate regulated subsidiary, AmerenEnergy Resources Generating Company (AERG). This transaction, involving approximately 1,100 megawatts of generating capacity with a net book value of $380 million as of June 30, 2003, aims to separate regulated utility operations from competitive generation assets. As part of the deal, about 23% of AmerenCILCO's employees were transferred to AERG. To ensure reliable power for its customers, AmerenCILCO entered into a power supply agreement with AERG, initially expiring December 31, 2004, with plans to extend it through December 31, 2006, a move previously authorized by the Illinois Commerce Commission.

Key Highlights

  • 1AmerenCILCO transferred significant electric generation assets, including two coal-fired plants and combustion turbine facilities, to its subsidiary AERG.
  • 2The transferred assets represent approximately 1,100 megawatts of generating capacity.
  • 3The net book value of the transferred assets was approximately $380 million as of June 30, 2003.
  • 4This move separates AmerenCILCO's regulated operations from its non-rate regulated generation subsidiary, AERG.
  • 5Approximately 23% of AmerenCILCO's employees were transferred to AERG.
  • 6A power supply agreement was established between AmerenCILCO and AERG to ensure continued power supply to AmerenCILCO's customers.
  • 7The power supply agreement is planned for an extension through December 31, 2006, with prior authorization from the Illinois Commerce Commission.

Frequently Asked Questions

The primary purpose is to separate AmerenCILCO's regulated electric utility operations from its competitive, non-rate regulated generation business, now housed in AmerenEnergy Resources Generating Company (AERG). This restructuring allows for clearer operational focus and potentially different strategic approaches for each segment.

AmerenCILCO entered into an electric power supply agreement with its subsidiary AERG. This agreement ensures that AERG will supply AmerenCILCO with sufficient power to meet its customers' needs. The initial agreement is through December 31, 2004, with plans to extend it further.

The net book value of the transferred generation assets was approximately $380 million as of June 30, 2003. The transaction involved AERG assuming certain liabilities and issuing its stock in exchange for the assets, indicating a shift in how these assets are capitalized and managed.

Yes, approximately 23% of AmerenCILCO's employees were transferred to the new subsidiary, AERG, as part of this transaction. This indicates a significant reallocation of personnel to the competitive generation business.