8-KMaterial Agreements

AMEREN CORP 8-K Report, Agreement Terminated (Apr 7, 2005)

Filed April 7, 2005For Securities:AEE

Summary

Ameren Corporation (AEE) announced on April 7, 2005, that its subsidiaries, Union Electric Company (UE) and Central Illinois Public Service Company (CIPS), have provided notice to terminate their participation in the GridAmerica independent transmission company (ITC) and related agreements. This decision is driven by the belief that direct participation in the Midwest Independent Transmission System Operator (MISO) will offer equivalent or greater value compared to their current involvement through GridAmerica LLC. The withdrawal is effective November 1, 2005. Importantly, the company stated that these agreements do not impose any early termination penalties on UE or CIPS for this action. Following their withdrawal, UE and CIPS will operate directly within the MISO framework, similar to their affiliates AmerenCILCO and AmerenIP. This move signifies a strategic shift in how Ameren manages its transmission assets within the evolving regional transmission organization landscape.

Key Highlights

  • 1Ameren subsidiaries UE and CIPS are withdrawing from the GridAmerica independent transmission company (ITC).
  • 2The withdrawal from GridAmerica LLC and related agreements is effective November 1, 2005.
  • 3Ameren believes direct participation in the Midwest Independent Transmission System Operator (MISO) will provide comparable or greater value.
  • 4No early termination penalties will be incurred by UE or CIPS due to this withdrawal.
  • 5Following withdrawal, UE and CIPS will participate directly in MISO, aligning with other Ameren affiliates.
  • 6This action is a strategic adjustment to Ameren's transmission management strategy within MISO.

Frequently Asked Questions

Ameren's subsidiaries, UE and CIPS, are withdrawing because they believe their continuing participation in MISO through GridAmerica LLC will not provide significant added value compared to participating directly in MISO, as their affiliates AmerenCILCO and AmerenIP are already doing.

The withdrawal from GridAmerica and termination of participation in the related agreements will be effective on November 1, 2005.

No, the company explicitly stated that the Master Agreement and Operation Agreement do not assess any early termination penalties on UE or CIPS for taking this action.

Upon withdrawal and termination, UE and CIPS will participate directly in the Midwest Independent Transmission System Operator (MISO), similar to how their affiliates AmerenCILCO and AmerenIP currently operate.