Exhibit 99.1
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Ameren Services
101 Madison/P.O. Box 780
Jefferson City, MO 65102
Contacts:
Media: Analysts: Investors:
Mike Cleary Bruce Steinke Investor Services
(573) 681-7137 (314) 554-2574 invest@ameren.com
mcleary@ameren.com bsteinke@ameren.com
FOR IMMEDIATE RELEASE
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AMERENUE SEEKS NATURAL GAS RATE INCREASE; PROPOSES PHASE-IN
AND OTHER PROVISIONS TO MINIMIZE CUSTOMER IMPACT
JEFFERSON CITY, MO., May 23, 2003--Citing significant investments in the
energy infrastructure of its gas business and rising operating expenses,
AmerenUE, an operating company of Ameren Corporation (NYSE:AEE), today filed a
request with the Missouri Public Service Commission (PSC) for a phased-in $26.7
million increase in natural gas delivery rates for its approximately 111,000
Missouri gas customers. In the filing, AmerenUE notes that this would be only
the third increase in the company's Missouri gas delivery rates since 1987. The
request will not have any immediate effect on customers' gas bills, as it must
first go through the process of PSC review and hearings.
To minimize the impact on customers, AmerenUE is proposing to phase in the
new rates over two years, with one half of the increase taking effect Dec. 1,
2003 and the other half taking effect Nov. 1, 2004. AmerenUE would also agree
not to seek additional increases in gas delivery rates through Nov. 1,
2006--excluding any special provisions for the recovery of certain
infrastructure costs that may be provided by law.
The proposal also calls for the company to contribute $1.75 million to its
Dollar More energy assistance program to help low-income customers pay their
utility bills, with the first $1 million contribution set for Dec. 1, 2003 and
$250,000 in each of the following three years. When coupled with the $9 million
commitment to Dollar More that AmerenUE made as part of its electric rate case
settlement in 2002, the company will have committed $10.75 million in new
support for this important energy assistance program in the last year. AmerenUE
notes that these contributions will not be recovered in its electric or natural
gas rates.
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first add
"Our innovative rate proposal mitigates the impact of increased rates on
customers' bills, particularly low-income customers, while it permits timely
recovery of critical energy infrastructure investments," says AmerenUE President
and Chief Operating Officer Gary L. Rainwater. "This proposal balances the
interests of all stakeholders and will ensure continued reliability and strong
service to all of our natural gas customers."
In the filing, the company is seeking to recover expenses associated with
more than $50 million of investments in gas system improvements, including
significant replacement of cast iron mains and unprotected steel service lines
as well as costs for customer service system improvements that have been
completed since the last rate case.
Thomas R. Voss, AmerenUE senior vice president for Energy Delivery, says
that since May 1, 2000, the company has replaced about 55 miles of old cast iron
pipes and more than 3,000 service lines with modern, more durable polyethylene
pipe, largely to comply with state regulations. "In addition, we have added
about 142 miles of new gas mains and more than 7,000 service connections to
accommodate new growth," Voss says. "AmerenUE customers are receiving the
benefits of these expenditures, but our current rates do not reflect these
higher costs."
The requested rate change would result in an overall increase of about 9
percent in customers' natural gas costs beginning Dec. 1, 2003, and another 9
percent beginning Nov. 1, 2004. With the completion of this phase-in period, the
net increase in an average monthly residential gas bill would be about $16.26,
compared to current bills.
This amount does not include any changes that may occur in the Purchased
Gas Adjustment (PGA), which reflects the commodity cost of gas from the
company's suppliers. Supplier costs are not regulated, and go up or down based
on supply and demand without "mark-up" by AmerenUE.
Gas delivery rates reflect the cost of constructing, operating and
maintaining the company's natural gas system. These costs usually account for
about a third of a typical residential customer's total gas bill, while the PGA
accounts for the rest, excluding taxes.
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second add
Changes in AmerenUE's Missouri PGA factor usually occur twice a year, while
the company's gas delivery rates have not changed since Nov. 1, 2000.
To help customers control their energy costs, Ameren provides a range of
energy-saving tips on its Web site: www.ameren.com. AmerenUE also offers a
Budget Billing Plan that enables customers to minimize the impact of rate
changes and big seasonal changes in energy use by spreading their energy costs
out over the entire year. Customers can sign up for Budget Billing through the
Ameren Web site or by calling 1-800-55-ASK-UE (1-800-552-7583).
AmerenUE is a subsidiary of St. Louis-based Ameren Corporation. Ameren
companies serve 1.7 million electric customers and 500,000 natural gas customers
in a 49,000-square-mile area of Missouri and Illinois.
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Forward-Looking Statements
Statements made in this release, which are not based on historical facts, are
"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, strategies, objectives, events, conditions, and
financial performance. In connection with the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995, AmerenUE is providing this
cautionary statement to identify important factors that could cause actual
results to differ materially from those anticipated. The factors, discussed
elsewhere in this release and in AmerenUE's annual report on SEC Form 10-K for
the fiscal year ended December 31, 2002, and subsequent securities filings,
could cause results to differ materially from management expectations, as
suggested by such "forward-looking" statements.