8-KRegulation FDOther EventsExhibits & Filings

AMEREN CORP 8-K Report, Regulation FD Disclosure (Sep 18, 2006)

Filed September 18, 2006For Securities:AEE

Summary

Ameren Corporation (AEE) has filed an 8-K to disclose the results of a competitive power procurement auction in Illinois, managed by NERA Economic Consulting. The auction determined the cost of power for Ameren's Illinois utility companies (CIPS, CILCO, and IP) for fixed-price customers in 2007, which represents the vast majority of their customer base. This event is significant as it occurs prior to the expiration of the current Illinois electric rate freeze and power supply contracts at the end of 2006, marking a transition to a new power procurement strategy. The company also noted that a separate press release discusses the potential impact on Illinois residential customer rates, considering both the auction results and potential increases from pending delivery service cases before the Illinois Commerce Commission. Investors should pay close attention to these developments as they will influence future electricity costs and the company's regulatory environment.

Key Highlights

  • 1NERA Economic Consulting declared a successful outcome for the Illinois competitive power procurement auction for fixed-price customers on September 15, 2006.
  • 2The auction results will determine the cost of power for Ameren's Illinois utilities (CIPS, CILCO, and IP) for their fixed-price customers in 2007.
  • 3This auction is crucial given the impending expiration of the Illinois electric rate freeze and power supply contracts on December 31, 2006.
  • 4A press release indicates potential increases in Illinois residential customer rates, stemming from both auction outcomes and pending delivery service cases.
  • 5The filing incorporates by reference press releases from NERA Economic Consulting (Exhibit 99.1) and Ameren's Illinois utilities (Exhibit 99.2) detailing these events.
  • 6The company explicitly states that information furnished under Item 7.01 is not deemed 'filed' and thus not subject to Section 18 of the Exchange Act.

Frequently Asked Questions

The primary purpose of this 8-K filing was to disclose the results of a competitive power procurement auction for Ameren's Illinois utility companies (CIPS, CILCO, and IP) and to highlight the potential impact on customer rates as the Illinois electric rate freeze and power supply contracts expire at the end of 2006.

NERA Economic Consulting managed the auction and declared a successful result for fixed-price customers. This means the auction determined the cost of power that CIPS, CILCO, and IP will purchase on behalf of these customers for the year 2007.

Yes, a press release mentioned by Ameren indicates potential increases in Illinois residential customer rates. These increases could arise from the outcomes of the competitive power procurement auction and from separate delivery service cases that are currently pending before the Illinois Commerce Commission.

The expiration of the rate freeze and contracts at the end of 2006 is significant because it marks a transition period for Ameren's Illinois utilities. The results of the power procurement auction will directly influence the cost of electricity for customers moving forward, in a less regulated environment than before.