Ameren Illinois, a subsidiary of
Ameren Corporation
(
AEE">AEE
), has filed for the implementation of its Modernization Action
Plan ("MAP") with Illinois Commerce Commission. This marks the
first step for the MAP that is aimed to provide customers with an
improved, more reliable and modernized electric distribution
system.
In December 2011, the company enacted the Energy Infrastructure
Modernization Act. This Act is a statewide commitment that follows
a formularatemaking approach and is expected to create more than
2,400 jobs.
The Act calls for an investment of $3 billion over the next 10
years to renovate the state's electric system, and also includes
the installation of smart grid.Ameren Illinois is looking forward
to executing the new law as its MAP.
The key points of the initial action plan, during filing,
include investment of an additional $625 million in theAmeren
Illinois electric delivery system over the next 10 years, thus
creating 450 new jobs, improving service reliability by using
advanced distribution system automation, modernization of electric
substations and the installation of new transformers.
The MAP filing is expected to benefitAmeren customers in
multiple ways, by reducing the instances and length of electric
service outages with the introduction of new technologies. This
would help them to exercise greater control over their energy usage
and expenditure. The MAP also includes a provision for the
imposition of penalties, in case the company fails to meet its
goals.
These initiatives indicate that the company has begun focusing
on 2012 and beyond. Key growth drivers for the company include
consistent performances across its stable utility operations in the
Midwestern market, its focus on cost minimization and its strong
balance sheet.
However, we are concerned about its predominantly coal-based
generation assets and pending regulatory cases. The company
presently retains a short-termZacks #3 Rank (Hold) that corresponds
with our long-term Neutral recommendation on the stock.
St. Louis-basedAmeren Corporation is a holding company which
engages in the generation and distribution of electricity and
natural gas. It caters to residential, commercial, industrial and
wholesale end-markets in Missouri and Illinois. Some of its main
competitors include
CenterPoint Energy, Inc.
(
CNP">CNP
) and
Exelon Corporation
(
EXC">EXC
).
AMEREN CORP (
AEE
): Free Stock Analysis Report
CENTERPOINT EGY (
CNP
): Free Stock Analysis Report
EXELON CORP (
EXC
): Free Stock Analysis Report
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