8-KOther Events

AMEREN CORP 8-K Report, Corporate Update (Sep 21, 2012)

Filed September 21, 2012For Securities:AEE

Summary

Ameren Corporation (AEE) announced on September 21, 2012, that its subsidiary, Ameren Energy Resources Company (AER), received a variance from the Illinois Pollution Control Board (IPCB) on September 20, 2012. This variance extends compliance deadlines for sulfur dioxide (SO2) emission levels under the Illinois Multi-Pollutant Standards (MPS) through December 31, 2019, although AER had requested an extension until December 31, 2020. The IPCB also approved AER's plan to restrict SO2 emissions below MPS levels through 2014 to mitigate environmental impact and mandated specific deadlines for completing scrubber project installations at the Genco Newton energy center. This ruling provides AER with crucial additional time to pursue economic recovery and achieve the necessary power price improvements required to fund the installation of pollution control equipment, such as scrubbers, at its energy centers. The company is currently evaluating the terms of the variance and has 45 days to formally accept them. The delays in scrubber installations at Newton and precipitator upgrades at E.D. Edwards energy center are ongoing, and Ameren's merchant generation business will continue to adapt its compliance plans based on market conditions and evolving regulatory landscapes.

Key Highlights

  • 1IPCB granted AER a variance extending SO2 emission compliance deadlines through December 31, 2019.
  • 2The variance is subject to specific conditions, including the completion of scrubber project milestones at the Genco Newton energy center by September 1, 2019.
  • 3AER must restrict SO2 emissions to below MPS levels through 2014 to offset environmental impacts from the variance.
  • 4The Meredosia and Hutsonville energy centers are restricted from operation through December 31, 2020.
  • 5The ruling provides AER additional time for economic recovery and power price improvements needed for pollution control investments.
  • 6Ameren is currently reviewing the variance terms and has 45 days to decide whether to accept them.
  • 7Delays in installing scrubbers at Newton and upgrades at E.D. Edwards energy center are acknowledged.

Frequently Asked Questions

The primary impact is that Ameren's subsidiary, AER, has received an extended deadline to comply with certain sulfur dioxide (SO2) emission standards, providing crucial time for economic recovery and funding pollution control installations. It also imposes operational restrictions on specific energy centers and mandates project deadlines.

Yes, the Meredosia and Hutsonville energy centers are restricted from operating through December 31, 2020, as part of the variance conditions. However, Meredosia may be considered for repowering by third parties.

Key conditions include completing engineering design for scrubbers at the Newton energy center by July 2015, having major equipment components in place by September 1, 2019, restricting SO2 emissions through 2014, and AER formally accepting the variance terms within 45 days of September 20, 2012.

No, this variance specifically addresses SO2 emission compliance dates for the Illinois Multi-Pollutant Standards. Ameren's subsidiaries are still undertaking projects to reduce mercury, nitrogen oxide (NOx), and SO2 emissions, and will continue to adjust compliance plans based on market and regulatory factors.