8-KOther Events

AMEREN CORP 8-K Report, Corporate Update (Apr 19, 2012)

Filed April 19, 2012For Securities:AEE

Summary

Ameren Corporation (AEE), through its subsidiary Ameren Missouri, announced on April 19, 2012, a strategic move to support Westinghouse Electric Company's application for Department of Energy (DOE) Small Modular Reactor (SMR) investment funds. This collaboration aims to secure funding for the design certification and Combined Construction and Operating License (COL) for up to two SMR designs. If Westinghouse secures the DOE funding, Ameren Missouri intends to pursue a COL from the Nuclear Regulatory Commission (NRC) for a Westinghouse SMR at its existing Callaway County, Missouri nuclear energy center site. This action is primarily to preserve an important energy option for the future and position Missouri to adopt SMR technology should market and regulatory conditions become favorable. Ameren Missouri estimates the cost to obtain the COL to be between $80-$100 million, with its own incremental investment being minimal due to prior investments and the potential DOE support.

Key Highlights

  • 1Ameren Missouri is partnering with Westinghouse Electric Company to support its application for up to $452 million in DOE SMR investment funds.
  • 2The DOE funds are intended for first-of-a-kind engineering, design certifications, and a Combined Construction and Operating License (COL) for SMRs.
  • 3If Westinghouse receives DOE funding, Ameren Missouri will seek an NRC COL for a Westinghouse SMR at its Callaway County, Missouri nuclear site.
  • 4Securing a COL does not obligate Ameren Missouri to build an SMR but preserves an important future energy option.
  • 5Ameren Missouri estimates the total cost for the SMR COL to be $80-$100 million, with its incremental investment expected to be minimal.
  • 6The company's agreement with Westinghouse is contingent on Westinghouse being awarded the DOE SMR investment funds.
  • 7Ameren Missouri is not currently pursuing legislative efforts for cost recovery of new nuclear plant development expenditures.

Frequently Asked Questions

The agreement signifies Ameren Missouri's proactive stance in exploring advanced nuclear technology. By supporting Westinghouse's bid for DOE SMR funds, Ameren Missouri aims to position itself to potentially develop Small Modular Reactors at its Callaway site in the future, securing a potentially cleaner and more flexible energy source.

No, this filing does not indicate an immediate plan to build a new reactor. Securing a Combined Construction and Operating License (COL) from the NRC is a preparatory step that preserves the option to build an SMR. The decision to proceed with construction would depend on various future factors, including the DOE funding outcome, regulatory approvals, and favorable economic conditions.

Ameren Missouri estimates the total cost to obtain the SMR COL will be in the range of $80-$100 million. The company anticipates its own direct investment to be minimal due to prior nuclear development expenditures and the potential support from DOE funding and its agreement with Westinghouse.

If Westinghouse is not awarded the DOE SMR investment funds, Ameren Missouri is not obligated to pursue the COL for the Westinghouse SMR. In such a scenario, the company may terminate its agreement with Westinghouse, and this particular path for SMR development would likely be abandoned.