Company also details benefits from Smart Energy Plan
investments in a stronger grid that saved customers 8 million
minutes in outages in 2024
ST.
LOUIS, Feb. 14, 2025 /PRNewswire/ -- Ameren
Missouri, a subsidiary of Ameren Corporation (NYSE: AEE), announced
a significant change to its generation strategy, aiming to
accelerate generation investments to support robust economic
expansion, bolster reliability and create jobs across Missouri. The revision to Ameren Missouri's
Preferred Resource Plan in its Integrated Resource
Plan (IRP) is designed to provide for 1.5 gigawatts (GW)
of expected new energy demand by 2032, with a balanced mix of
generation resources to deliver reliable, affordable and cleaner
energy for all customers.
Building off the success of bringing in nearly two dozen new
economic development projects in 2024, Ameren Missouri has
construction agreements with potential large load customers for new
energy demand.
"These agreements are an initial step," said Mark Birk, chairman and president of Ameren
Missouri. "Work remains with key stakeholders to secure these
customers and provide benefits to our communities."
To support these investments in new energy generation and to
provide the reliable delivery of that energy to customers, today,
Ameren Missouri also filed its updated Smart Energy
Plan with the Missouri Public Service Commission. The
$16.2 billion, five-year plan calls
for continued investments in modern infrastructure to enhance grid
reliability and resiliency.
"Our customers depend on Ameren Missouri to continue investing
in reliability, whether that's through a balanced mix of energy
resources or strengthening the grid by upgrading and maintaining
aging infrastructure. Through these continued investments, we are
ensuring that we have a reliable and resilient energy system to
serve customers today and well into the future," Birk said.
The updated generation strategy within the new Preferred
Resource Plan (PRP) of the IRP, which is designed to reliably serve
customers and support economic development, is detailed at
AmerenMissouri.com/Reliable. It includes:
- Building 1,600 megawatts (MW) of natural gas generation
resources by 2030, with a total planned addition of 6,100 MW by
2045.
- Continuing investments in renewable generation resources across
the region, which includes another 2,700 MW of wind and solar
energy by 2030, with a total planned addition of 4,200 MW by
2045.
- Deploying a significant amount of battery storage across
the Ameren Missouri service territory. The PRP calls for 1,000
MW to be installed by 2030 and a total of 1,800 MW by 2045.
- Planning for 1,500 MW of new nuclear energy generation by 2045.
Nuclear operates regardless of weather and can provide a clean,
steady supply of energy that customers will need in the future.
Ameren Missouri continues to expect to seek an extension to operate
the Callaway Energy Center beyond 2044.
The IRP reflects an overall increase of 1.8 GW of capacity
between now and 2030 and a total of 2.3 GW of capacity by 2035.
When factoring in updated costs for all planned resources, the IRP
represents an additional investment opportunity of $5 billion by 2030 and a total of $7 billion by 2035.
"For the past decade, we have made significant investments in a
balanced mix of generation resources to provide reliable,
lowest-cost, cleaner energy for our customers. Our continued focus
on modernizing our infrastructure is designed to make sure
Missouri remains an attractive
destination for new and expanding businesses," said Ajay Arora, senior vice president and chief
development officer at Ameren Missouri.
Significant Investments in Reliable Infrastructure
Through the Smart Energy Plan, Ameren Missouri will continue its
investments in modern energy delivery infrastructure. These efforts
support reliability for customers by upgrading aging equipment,
increasing capacity and grid flexibility, installing stronger poles
to increase resiliency during severe storms and adding smart
technology to reduce outages and respond faster when they do
occur.
Smart Energy Plan upgrades through 2024 include:
- 134 new or upgraded substations to better serve communities
across Missouri.
- Approximately 250 miles of upgraded subtransmission lines,
improving storm resiliency and providing more flexibility to
reroute power during an outage.
- 1.3 million smart meters to automatically detect and report
outages and provide customers detailed energy usage information and
expanded rate options.
- 1,700 additional smart switches on the system to reduce outages
from hours to minutes and even seconds.
"Smart switch technology has been a critical component of our
efforts to provide the reliability our customers have come to
expect," said Tim Lafser,
senior vice president of energy delivery for Ameren Missouri.
"These devices rapidly detected outages and automatically restored
power for more than 50,000 customers during major storms in 2024 –
eliminating what would otherwise have been 8 million minutes' worth
of outages."
Reliable infrastructure, enabled by the Smart Energy Plan, is
crucial to supporting the energy needs of businesses and the
ability to attract investment in our region. In 2024, businesses
announced more than $3.1 billion in
planned capital investment to relocate or expand in Ameren
Missouri's service territory.
"Ameren Missouri has spent approximately $2 billion with Missouri-based suppliers and contractors
through the Smart Energy Plan, representing more than 1,200
businesses in 60 counties," Birk said. "And we are seeing increased
interest and opportunity for businesses to locate their operations
in our communities. The reliable, resilient energy Ameren Missouri
provides is fundamental to economic expansion and vital to
supporting our nation's critical infrastructure."
Additional information about Smart Energy Plan investments and
benefits can be found in the 2024 Progress Report.
About Ameren Missouri
Ameren Missouri has been providing electric and gas service for
more than 100 years, and the company's electric rates are among the
lowest in the nation. Ameren Missouri's mission is to power the
quality of life for its approximately 1.3 million electric and
100,000 natural gas customers in central and eastern Missouri. The company's service area covers
approximately 60 counties and more than 500 communities, including
the greater St. Louis area. For
more information, visit Ameren.com/Missouri or follow us at
@AmerenMissouri or Facebook.com/AmerenMissouri.
Forward-Looking Statements
Statements in this release not based on historical facts are
considered "forward-looking" and, accordingly, involve risks and
uncertainties that could cause actual results to differ materially
from those discussed. Although such forward-looking statements have
been made in good faith and are based on reasonable assumptions,
there is no assurance that the expected results will be achieved.
These statements include (without limitation) statements as to
future expectations, beliefs, plans, projections, strategies,
targets, estimates, objectives, events, conditions, and financial
performance. In connection with the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995, we are providing
this cautionary statement to identify important factors that could
cause actual results to differ materially from those anticipated.
The following factors, in addition to those discussed under Risk
Factors in Ameren's and Ameren Missouri's Annual Report on Form
10-K for the year ended December 21,
2023, and elsewhere in this release and in our other filings
with the Securities and Exchange Commission, could cause actual
results to differ materially from management expectations suggested
in such forward-looking statements:
- regulatory, judicial, or legislative actions, and any changes
in regulatory policies and ratemaking determinations that may
change regulatory recovery mechanisms, such as those that may
result from Ameren Missouri's electric service regulatory rate
review filed with the Missouri Public Service Commission ("MoPSC")
in June 2024, Ameren Missouri's
natural gas delivery service regulatory rate review filed with the
MoPSC in September 2024, and the
Federal Energy Regulatory Commission's (FERC) December 2024 notice indicating a future order
will be issued related to rehearing requests on the October 2024 FERC order regarding the allowed
base return on equity ("ROE") under the Midcontinent Independent
System Operator, Inc., a regional transmission organization
("MISO") tariff along with the January
2025 appeal of FERC's October
2024 order by the MISO transmission owners, including Ameren
Missouri;
- our ability to control costs and make substantial investments
in our businesses, including our ability to recover costs and
investments, and to earn our allowed ROEs, within frameworks
established by our regulators, while maintaining affordability of
services for our customers;
- the effect on Ameren Missouri of any customer rate caps or
limitations on increasing the electric service revenue requirement
pursuant to Ameren Missouri's election to use the plant-in-service
accounting regulatory mechanism;
- Ameren Missouri's ability to construct and/or acquire wind,
solar, and other renewable energy generation facilities and battery
storage, as well as natural gas-fired energy centers, extend the
operating license for the Callaway Energy Center, retire fossil
fuel-fired energy centers, and implement new or existing customer
energy-efficiency programs, including any such construction,
acquisition, retirement, or implementation in connection with its
Smart Energy Plan, preferred resource plan, or emissions reduction
goals, and to recover its cost of investment, a related return,
and, in the case of customer energy-efficiency programs, any lost
electric revenues in a timely manner, each of which is affected by
the ability to obtain all necessary regulatory and project
approvals, including certificates of convenience and necessity from
the MoPSC or any other required approvals;
- Ameren Missouri's ability to use or transfer federal production
and investment tax credits related to renewable energy projects and
nuclear energy production; the cost of wind, solar, and other
renewable generation and battery storage technologies; and our
ability to obtain timely interconnection agreements with the MISO
or other regional transmission organizations at an acceptable cost
for each facility;
- the inability of our counterparties to meet their obligations
with respect to contracts, credit agreements, and financial
instruments, including as they relate to the construction and
acquisition of electric and natural gas utility infrastructure and
the ability of counterparties to complete projects, which is
dependent upon the availability of necessary materials and
equipment, including those obligations that are affected by supply
chain disruptions;
- advancements in energy technologies, including carbon capture,
utilization, and sequestration, hydrogen fuel for electric
production and energy storage, next generation nuclear, and
large-scale long-cycle battery energy storage, and the impact of
federal and state energy and economic policies with respect to
those technologies;
- the effects of changes in federal, state, or local laws and
other domestic or international governmental actions, including
monetary, fiscal, foreign trade, and energy policies, tariffs, or
extended federal government shutdowns or defunding;
- the effects of changes in federal, state, or local tax laws or
rates; additional regulations, interpretations, amendments, or
technical corrections to, or in connection with the Inflation
Reduction Act of 2022 ("IRA"), including the effects of the IRA as
it relates to income tax payments or the transferability of
production and investment tax credits and the 15% minimum tax on
adjusted financial statement income; and challenges to the tax
positions taken by us, if any, as well as resulting effects on
customer rates and the recoverability of the minimum tax imposed
under the IRA;
- the effects on energy prices and demand for our services
resulting from customer growth patterns or usage, including demand
from data centers, technological advances, including advances in
customer energy efficiency, electric vehicles, electrification of
various industries, energy storage, and private generation sources,
which generate electricity at the site of consumption and are
becoming increasingly cost-competitive;
- the cost and availability of fuel, such as low-sulfur coal,
natural gas, and enriched uranium used to produce electricity; the
cost and availability of natural gas for distribution and the cost
and availability of purchased power, including capacity, zero
emission credits, renewable energy credits, and emission
allowances; and the level and volatility of future market prices
for such commodities and credits;
- disruptions in the delivery of fuel, failure of our fuel
suppliers to provide adequate quantities or quality of fuel, or
lack of adequate inventories of fuel, including nuclear fuel
assemblies primarily from the one Nuclear Regulatory
Commission-licensed supplier of assemblies for Ameren Missouri's
Callaway Energy Center;
- the cost and availability of transmission capacity required for
the energy generated by Ameren Missouri's energy centers or
required to satisfy our energy sales;
- the effectiveness of our risk management strategies and our use
of financial and derivative instruments;
- the ability to obtain sufficient insurance or, in the absence
of insurance, the ability to timely recover uninsured losses from
our customers;
- the impact of cyberattacks and data security risks on us, our
suppliers, or other entities on the grid, which could, among other
things, result in the loss of operational control of energy centers
and electric and natural gas transmission and distribution systems
and/or the loss of data, such as customer, employee, financial, and
operating system information;
- acts of sabotage, which have increased in frequency and
severity within the utility industry, war, terrorism, or other
intentionally disruptive acts;
- business, economic, geopolitical, and capital market
conditions, including tariffs or trade wars, evolving federal
regulatory priorities, and the impact of such conditions on
interest rates, inflation, and investments;
- the impact of inflation or a recession on our customers and
suppliers and the related impact on our results of operations,
financial position, and liquidity;
- disruptions of the capital and credit markets, deterioration in
our credit metrics, or other events that may have an adverse effect
on the cost or availability of capital, including short-term credit
and liquidity, and our ability to access the capital and credit
markets on reasonable terms when needed;
- the actions of credit rating agencies and the effects of such
actions;
- the impact of weather conditions and other natural conditions
on us and our customers, including the impact of system outages and
the level of wind and solar resources;
- the construction, installation, performance, and cost recovery
of generation, transmission, and distribution assets;
- the ability to maintain system reliability during and after the
transition to clean energy generation by Ameren Missouri and the
electric utility industry as well as Ameren Missouri's ability to
meet generation capacity obligations;
- the effects of failures of electric generation, electric and
natural gas transmission or distribution, or natural gas storage
facilities systems and equipment, which could result in
unanticipated liabilities or unplanned outages;
- the operation of Ameren Missouri's Callaway Energy Center,
including planned and unplanned outages, as well as the ability to
recover costs associated with such outages and the impact of such
outages on off-system sales and purchased power, among other
things;
- Ameren Missouri's ability to recover the remaining investment
and decommissioning costs associated with the retirement of an
energy center, as well as the ability to earn a return on that
remaining investment and those decommissioning costs;
- the impact of current environmental laws or their
interpretation and new, more stringent, or changing requirements,
including those related to New Source Review provisions of the
Clean Air Act, carbon dioxide, nitrogen oxides, and other emissions
and discharges, cooling water intake structures, coal combustion
residuals, energy efficiency, and wildlife protection, that could
limit or terminate the operation of certain of Ameren Missouri's
energy centers, increase our operating costs or investment
requirements, result in an impairment of our assets, cause us to
sell our assets, reduce our customers' demand for electricity or
natural gas, or otherwise have a negative financial effect;
- the impact of complying with renewable energy standards in
Missouri;
- the effectiveness of Ameren Missouri's customer
energy-efficiency programs and the related revenues and performance
incentives earned under its Missouri Energy Efficiency Investment
Act programs;
- labor disputes, work force reductions, our ability to attract
and retain professional and skilled-craft employees, changes in
future wage and employee benefits costs, including those resulting
from changes in discount rates, mortality tables, returns on
benefit plan assets, and other assumptions;
- the impact of negative opinions of us or our utility services
that our customers, investors, legislators, regulators, creditors,
rating agencies or other stakeholders may have or develop, which
could result from a variety of factors, including failures in
system reliability, failure to implement our investment plans or to
protect sensitive customer information, increases in rates,
negative media coverage, or concerns about company policies or
practices;
- the impact of adopting new accounting and reporting
guidance;
- the effects of strategic initiatives, including mergers,
acquisitions, and divestitures;
- legal and administrative proceedings;
- pandemics or other significant global health events, and their
impacts on our results of operations, financial position, and
liquidity;
- the impacts of the Russian invasion of Ukraine and conflicts in the Middle East, related sanctions imposed by
the United States and other
governments, and any broadening of these or other global conflicts,
including potential impacts on the cost and availability of fuel,
natural gas, enriched uranium, and other commodities, materials,
and services; and
- the inability of our counterparties to perform their
obligations, disruptions in the capital and credit markets,
prolonged government shutdowns or defunding, acts of sabotage or
terrorism, including cyberattacks and physical attacks, and other
impacts on business, economic, and geopolitical conditions,
including inflation, tariffs, trade wars, or recession.
New factors emerge from time to time, and it is not possible for
management to predict all of such factors, nor can it assess the
impact of each such factor on the business or the extent to which
any factor, or combination of factors, may cause actual results to
differ materially from those contained or implied in any
forward-looking statement. Given these uncertainties, undue
reliance should not be placed on these forward-looking statements.
Except to the extent required by the federal securities laws, we
undertake no obligation to update or revise publicly any
forward-looking statements to reflect new information or future
events.
View original
content:https://www.prnewswire.com/news-releases/ameren-missouri-unveils-plan-to-enable-economic-growth-boost-reliability-and-create-jobs-in-the-state-302376636.html
SOURCE Ameren Missouri
