Attorney General's News Release

July 16, 2002

State's challenge to AmerenUE results in rate reduction, secures future energy needs

Jefferson City, Mo. — A settlement agreement requiring AmerenUE to provide more than $400 million in benefits to Missouri consumers and commit more than $2.25 billion worth of infrastructure investment is a good deal for Missouri consumers and helps secure the future energy needs of the state, Missouri Attorney General Jay Nixon and Public Counsel John Coffman said today.

The agreement, signed today by the Public Service Commission staff, Nixon, Coffman and AmerenUE, requires the St. Louis-based utility to guarantee a $350 million cumulative savings by phasing in rate reductions over a four-year period and to post $40 million in credits to utility users to resolve the last year of a now-expired alternative regulation plan. A number of industry and retail utility consumers also signed the agreement.

"Reducing electric rates for consumers is an important element of this agreement," Nixon said. "Equally important is the written commitment that now requires AmerenUE to place billions into the state's energy infrastructure to meet Missouri's future energy needs. This settlement will help Missouri be energy secure and will prevent the rolling brownouts and other energy problems experienced in California."

While the settlement includes a three and one-half year moratorium on future rate cases by the PSC and AmerenUE, there is no such prohibition on the Attorney General. The settlement also requires AmerenUE to place $5 million in a low-income assistance fund to help meet the energy needs of low-income Missourians and $5 million in an economic development fund in 2002, with additional contributions of $1 million annually from 2003 to 2006 to each of these funds.

AmerenUE also will have to initially fund a $2 million low-income weatherization program and a $2 million residential and commercial energy efficiency program in 2002, with additional contributions of $500,000 to those funds annually from 2003 to 2006.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818