8-KEarnings & ResultsMaterial AgreementsOther Events+1

AMEREN CORP 8-K Report, Agreement Terminated (Nov 3, 2006)

Filed November 3, 2006For Securities:AEE

Summary

Ameren Corporation (AEE) has filed an 8-K detailing the mutually agreed termination of the "Genco-Marketing Company PSA" (Power Supply Agreement) between its subsidiaries Genco and Marketing Company, effective December 31, 2006. This termination is directly linked to the expiration of a separate "Marketing Company-CIPS PSA" with its subsidiary CIPS on the same date. The Genco-Marketing Company PSA was instrumental in supplying energy and capacity to CIPS to meet its retail customer obligations. Investors should note that this move is a planned consequence of the expiration of the CIPS rate freeze and existing power supply agreements, as previously discussed in earlier filings and risk factors. Additionally, the 8-K includes Ameren's earnings press release for the quarterly period ended September 30, 2006, and unaudited consolidated financial statements. While the press release is furnished, the financial statements are incorporated by reference as filed, providing investors with updated financial performance information. The termination of the internal power supply agreement signals a shift in Ameren's power procurement strategy post-rate freeze, a crucial factor for future operational and financial planning.

Key Highlights

  • 1Mutual termination of the Genco-Marketing Company Power Supply Agreement (PSA) effective December 31, 2006.
  • 2This termination is a direct result of the expiration of the Marketing Company-CIPS PSA on the same date.
  • 3The Genco-Marketing Company PSA was a key agreement for supplying energy and capacity to CIPS for retail customer loads.
  • 4The termination was mutually agreed upon, waiving the standard one-year notice period.
  • 5This action requires acceptance by the Federal Energy Regulatory Commission (FERC).
  • 6The 8-K includes Ameren's Q3 2006 earnings press release and updated financial statements.
  • 7The updated financial statements (Balance Sheet, Statement of Income, Statement of Cash Flows) are incorporated as filed, not just furnished.

Frequently Asked Questions

The Genco-Marketing Company PSA is being terminated by mutual consent because the Marketing Company-CIPS PSA, which it supported, will expire on December 31, 2006. This planned termination aligns with the expiration of the Illinois electric utility rate freeze and existing power supply agreements.

This termination represents a planned restructuring of Ameren's internal power supply arrangements as the existing rate freeze and power contracts expire. It signals a transition in how Ameren will procure power to serve its customers after December 31, 2006, which could have future impacts on operational costs and customer rates, subject to regulatory approvals.

Yes, the mutual termination of the Genco-Marketing Company PSA requires acceptance by the Federal Energy Regulatory Commission (FERC).

This 8-K filing includes Ameren's earnings press release for the quarter ended September 30, 2006, and unaudited consolidated financial statements (Statement of Income, Statement of Cash Flows, and Balance Sheet) as of and for the periods ended September 30, 2006, and compares them to prior periods. These financial statements are incorporated by reference as filed.