This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Illinois Senate Votes For Electric Reliability; New Jobs

COLLINSVILLE, Ill., Nov. 30, 2012 /PRNewswire/ -- The Illinois Senate voted overwhelmingly Thursday to pass a resolution calling for the modernization of the Ameren Illinois electricity distribution grid that will improve reliability and create hundreds of jobs throughout the state.

The resolution, which passed 47-4, states the Illinois Commerce Commission (ICC) must follow the rules set by the Energy Infrastructure Modernization Act (EIMA) that the Illinois General Assembly approved in 2011. The legislation provides incentives for investor-owned electric utilities to make significant upgrades and investments to its electric grid while meeting performance metrics, which will result in increased reliability, faster restoration times after outages and significant savings for consumers.

"The rationale behind the Energy Infrastructure Modernization Act was simple," said Ameren Illinois President and CEO Richard Mark, during a Senate hearing to support the resolution. "Utilities like Ameren Illinois would have the financial certainty to move forward with much-needed enhancements to the state's electric grid under a performance-based formula rate mechanism."

After the Legislature passed the EIMA last year, Ameren Illinois launched its 10-year, $625 Modernization Action Plan (MAP) that included: replacing and refurbishing underground distribution cables and fortifying utility poles; planning for the installation of new technology to detect outages and restore services; construction of a new training center to prepare the next generation of high-tech utility workers; the selection of a test bed location to enable entrepreneurs to tie into the grid to test new technologies and business models; and – most important – the process of hiring the 450 new Illinois employees.

But during the utility's formula rate case earlier this year, the ICC reduced Ameren's revenue by $48 million annually, making it impossible for it to cover the investments it committed to make and that lawmakers approved under the EIMA. Until the regulatory certainty intended by the EIMA is restored, Ameren Illinois has no choice but to reduce those investments.

"Ameren Illinois employees work every day to maintain the integrity of over 43,000 miles of transmission and distribution lines that deliver power safely to 1.2 million customers," Mark testified. "We opted into the Modernization Act to prepare this massive electric infrastructure for the 21 st century. If the Illinois Commerce Commission is compelled to apply the statutory directives as intended by the Illinois General Assembly, Illinois consumers and the Illinois economy will realize substantial benefits."

The resolution passed by the Illinois Senate calls on the ICC to order the utilities to file changes to their performance-based formula rate tariffs that: 1) apply an interest rate set at the utility's weighted average cost of capital; 2) set rate base and capital structure using final year-end values reflected in the FERC (Federal Energy Regulatory Commission) Form 1 rather than average numbers; and 3) correct errors the regulatory authority made. It instructs the ICC to approve those changes by Dec. 31.

Ameren Illinois has been providing energy delivery service for more than a century. We deliver energy to 1.2 million electric and 813,000 natural gas customers in Downstate Illinois, and our mission is to meet their energy needs in a safe, reliable, efficient and environmentally responsible manner. Our service area covers more than 1,200 communities and 43,700 square miles. For more information, visit AmerenIllinois.com.

SOURCE Ameren Illinois

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,114.83 +8.13 0.05%
S&P 500 1,998.85 -1.17 -0.06%
NASDAQ 4,566.9940 -3.6430 -0.08%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs