Company also Establishes Goal to Cut Carbon Emissions by 80 Percent
St. Louis /PRNewswire/ - Ameren Missouri announced today a forward-thinking plan to dramatically increase the amount of wind and solar generation to provide cost-effective and sustainable energy for its customers.
Ameren Missouri, a subsidiary of Ameren Corporation (NYSE: AEE), plans to add at least 700 megawatts of wind generation by 2020, representing an investment of approximately $1 billion. The potential exists to add even more wind generation in the coming years as a result of improving technology and economics, as well as renewable energy initiatives with large customers.
The company also plans to add 100 megawatts of solar generation over the next 10 years, with 50 megawatts expected to come online by 2025.
"This is Ameren Missouri's largest-ever commitment to clean, renewable energy," said Michael Moehn, president of Ameren Missouri. "We are committed to bringing our customers innovative solutions that are both cost-effective and environmentally responsible while maintaining the reliability our customers expect."
The new wind generation is expected to be located in Missouri and neighboring states using American-made turbines. The source, location and cost of the new wind generation is still under negotiation with several developers.
"We expect this tremendous growth in wind generation to provide great value to our customers, who will save money on energy costs," Moehn said. "Because of significant advancement in technology, harnessing wind is less expensive than other forms of new generation."
The planned generation is expected to be operational by 2020.
"We believe it is in our customers' long-term best interest for Ameren Missouri to own this wind generation," said Ajay Arora, vice president of environmental services and generation resource planning at Ameren.
The addition of 100 megawatts of solar generation over the next 10 years is expected to be developed in multiple phases.
Planning is underway on two projects. Earlier this year, Ameren Missouri announced plans to build a solar generation facility at St. Louis Lambert International Airport. That facility is expected to be complete in 2018. A separate project creates partnerships with business customers to locate an Ameren Missouri-owned solar generation facility on their property.
"These innovative solar programs have great promise," Arora said. "Moving generation assets closer to where the energy is needed most is one of the ways we're making the grid smarter, stronger and more resilient."
Further, the company is establishing a goal of reducing its carbon emissions 80 percent by 2050 from the 2005 level.
"We are the first investor-owned utility in the state, and among the first in the country, to announce a carbon emissions goal of this magnitude," Moehn said.
To meet this goal, Ameren Missouri is targeting a 35 percent carbon emissions reduction by 2030 and a 50 percent reduction by 2040 from the 2005 level. Since 2005, Ameren Missouri has significantly reduced emissions, including a 26 percent reduction in carbon emissions in 2016.
Specifics of Ameren Missouri's plan also include:
Ameren Missouri's Integrated Resource Plan (IRP), a 20-year outlook that supports cleaner energy in Missouri, was filed today with the Missouri Public Service Commission, and is consistent with Missouri's Renewable Energy Standard. The IRP, which is filed every three years, examines electric customers' projected long-term energy needs and describes Ameren Missouri's preferred approach to meeting those needs in a cost-effective fashion that maintains system reliability.
"The IRP is developed with the input of a wide variety of stakeholders and is consistent with Ameren's goal of transitioning its energy generation in a responsible fashion to ensure reliability while keeping customer rates affordable," Arora said.
In order to add these resources to its generation portfolio, Ameren Missouri is required to seek certificates of convenience and necessity from the Missouri Public Service Commission for projects located in Missouri and to obtain interconnection agreements so that it can use transmission services of the appropriate Regional Transmission Authority.
More information can be found at AmerenMissouri.com/IRP.
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 1.2 million electric and 127,000 natural gas customers in central and eastern Missouri. The company's service area covers 64 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.
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, strategies, 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 Annual Report on Form 10-K for the year ended December 31, 2016, 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:
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.
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