UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
September 24, 1998
AMEREN CORPORATION
(Exact name of registrant as specified in its charter)
Missouri 1-14756 43-1723446
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1901 Chouteau Avenue, St. Louis, Missouri 63103
(Address of principal executive offices and Zip Code)
Registrant's telephone number, including area code: (314) 621-3222
ITEM 5. OTHER EVENTS
In March 1998, Ameren Corporation (the Registrant) announced plans to reduce its
operating expenses, including plans to eliminate approximately 400 employee
positions by mid-1999 through a hiring freeze and a targeted separation plan
(the Plan). (See the Registrant's Form 10-Q for the quarterly period ended March
31, 1998.) In July 1998, the Registrant offered separation packages to employees
whose positions are to be eliminated. In the third quarter of 1998, the
Registrant will record a one-time charge of $25 million (which will reduce
earnings $15 million, or $.11 per share) representing costs incurred to
implement the Plan.
The Registrant expects that the hiring freeze and targeted separation plan will
reduce its operating expenses by approximately $10-$15 million in 1998 and
$20-$25 million annually thereafter.
In July 1997, the United States Environmental Protection Agency (EPA) issued
final regulations revising the National Ambient Air Quality Standards for ozone
and particulate matter. At that time, specific emission control requirements
were still being developed. In September 1998, the EPA issued a final rule
pertaining to nitrogen oxide emissions, which will require significant
additional reductions in emissions from coal-fired boilers. Both Missouri and
Illinois (where all of the Registrant's coal-fired power plant boilers are
located) are included in the area targeted for nitrogen oxide emissions
reductions as part of the EPA's regional control program. Reduction requirements
in nitrogen oxide emissions from the Registrant's coal-fired boilers will exceed
75% from 1990 levels by the year 2003. Because of the magnitude of these
additional reductions, the Registrant will be required to incur significantly
higher capital costs to meet future compliance obligations for its coal-fired
boilers or purchase power from other sources, either of which could have
significantly higher operating expenses associated with compliance. The
significant nitrogen oxide emissions reductions already achieved on several of
the Registrant's coal-fired power plants will help to reduce the costs of
compliance with this regulation.
It is not yet possible to determine the exact magnitude of the nitrogen oxide
emission reductions required on the Registrant's power plants because each State
has up to one year to develop a plan to comply with the EPA rule. However,
preliminary analysis of the regulations indicate that selective catalytic
reduction technology will be required for some of the Registrant's units, as
well as other additional controls.
The full details of these requirements are under study by the Registrant.
Currently, the Registrant estimates that its additional capital expenditures to
comply with these regulations could range from $250-$350 million over the period
from 1999 to 2002. Associated operations and maintenance expenditures could
increase $10-$15 million annually, beginning in 2003. The Registrant will
explore alternatives to comply with these new regulations in order to minimize,
to the extent possible, its capital costs and operating expenses. At this time,
the Registrant is unable to predict the ultimate impact of these revised air
quality standards on its future financial condition, results of operations or
liquidity.
Statements made in this filing 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 "Safe Harbor" provisions of the
Private Securities Litigation Reform Act of 1995, the Registrant is providing
this cautionary statement to identify important factors that could cause actual
results to differ materially from those anticipated. Factors include, but are
not limited to, the effects of regulatory actions; changes in laws and other
governmental actions; competition; future market prices for electricity; average
rates for electricity in the Midwest; changes in future technologies; business
and economic conditions; weather conditions; fuel prices and availability;
generation plant performance; monetary and fiscal policies; and legal and
administrative proceedings.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
AMEREN CORPORATION
(Registrant)
By /s/ Warner L. Baxter
------------------------
Warner L. Baxter
Vice President and Controller
Date: October 8, 1998