8-KOther EventsExhibits & Filings

AMEREN CORP 8-K Report, Corporate Update (Apr 23, 2009)

Filed April 23, 2009For Securities:AEE

Summary

Ameren Corporation (AEE) announced through its subsidiary, Union Electric Company (UE), on April 23, 2009, that it is suspending efforts to build a new nuclear unit at its Callaway County, Missouri site. This decision follows the request by UE to withdraw proposed Missouri legislation (Missouri Clean and Renewable Energy Construction Act) designed to allow utilities to recover financing and tax costs during new plant construction. UE stated that the legislation, in its current form, did not provide the necessary financial and regulatory certainty for project completion. While the nuclear project is suspended, AmerenUE has capitalized approximately $75 million in costs related to the construction permit application and long-lead equipment. An additional $85 million in contractual commitments for equipment remains. Management will assess options to maximize the value of this investment, but the ultimate realization of these costs and any potential impact on Ameren's financial results remain uncertain at this time. AmerenUE will continue to evaluate other options to meet future electricity needs.

Key Highlights

  • 1AmerenUE suspends efforts to build a new nuclear unit at its Callaway County, Missouri site.
  • 2Suspension is due to a lack of sufficient financial and regulatory certainty from proposed state legislation (Missouri Clean and Renewable Energy Construction Act).
  • 3UE requested the withdrawal of the critical enabling legislation from the Missouri General Assembly.
  • 4Approximately $75 million has been capitalized as construction work in progress for permit applications and equipment.
  • 5Remaining contractual commitments for long-lead equipment amount to approximately $85 million.
  • 6AmerenUE will explore options to maximize the value of its investment in the suspended project.
  • 7The company is still evaluating future generation capacity needs for its customers.

Frequently Asked Questions

AmerenUE is suspending the project because proposed Missouri legislation, designed to provide financial and regulatory certainty for new power plant construction, was not expected to be enacted in a form that would support the project's viability. UE requested the withdrawal of this legislation.

As of March 31, 2009, AmerenUE has capitalized approximately $75 million as construction work in progress, primarily related to the construction and operating license application and long-lead time equipment. There are also remaining contractual commitments of approximately $85 million for this equipment.

AmerenUE states that management will assess options to maximize the value of its investment. However, it is currently uncertain whether any or all of this investment will be realized or if there will be a material impact on Ameren's and UE's results of operations. Further evaluation is required.

No, AmerenUE has indicated that it will continue to evaluate options for providing the electricity its customers will need in the coming years. The suspension specifically pertains to the new nuclear unit project at the Callaway County site.