Rebuild of AmerenUE Taum Sauk Plant Reservoir To Serve As Engine For Missouri and...

Fri Feb 1, 2008 11:45am EST

* Reuters is not responsible for the content in this press release.

Rebuild of AmerenUE Taum Sauk Plant Reservoir To Serve As Engine For Missouri
and Regional Economic Growth, Recent Study Shows
Rebuild Expected to Add 635 jobs, $48 million in Income

ST. LOUIS, Feb. 1 /PRNewswire/ -- Rebuilding the upper reservoir of the
AmerenUE Taum Sauk pumped-storage hydroelectric plant, which is estimated to
cost $450 million, is expected to add 635 new jobs to the state's economy,
while raising state income by $48 million, a study conducted by the Center for
Economic & Business Research at Southeast Missouri State University shows.
    Serving as an engine for economic growth for Missouri, the two-year
reconstruction of the upper reservoir that was destroyed by a Dec. 14, 2005,
breach, will directly benefit Iron, Madison, Reynolds, St. Francois and Wayne
Counties in Southeast Missouri but will have a favorable impact across the
state.  Of the estimated 300 people expected to be employed to rebuild the
facility, 177 will be from a 10-county region within Missouri and will earn
approximately $17 million annually for each of the projected two years of the
rebuild.  The spending by these contract employees is expected to add an
additional $5 million of income and another 95 jobs in this 10-county region.
    The spending by all 300 contract employees is expected to lead to
increased employment and income in other economic sectors, with estimates that
this spending will create an additional 248 jobs in the state. Therefore, the
total number of new jobs added to state employment rolls by the project is
expected to stand at 548, creating approximately $43 million in additional
income.  Added to these 548 new jobs are the jobs expected to result from
construction spending of about $5.25 million in each of the projected two
years of the rebuild, adding another 87 jobs.  Completed in early 2008, the
full economic impact study of this major construction project can be found at
http://www.ameren.com/taumsauk/.
    The rebuild comes almost two years after the Dec. 14, 2005, breach in the
plant's upper reservoir caused significant flooding in the Johnson's Shut-Ins
State Park.  The upper reservoir will be constructed with roller compacted
concrete (RCC); once rebuilt, this 54.5-acre reservoir will be the largest RCC
dam in North America.
    In August 2007, AmerenUE received approval from the Federal Energy
Regulatory Commission to rebuild the upper reservoir, and in early November,
the company announced it had engaged Ozark Constructors, LLC, to rebuild the
reservoir. Ozark Constructors is a venture partnership formed by
Colorado-based ASI Constructors, Inc., and St. Louis-based Fred Weber, Inc.
AmerenUE also announced that Paul Rizzo Associates, Inc., based in
Pennsylvania, was selected engineer of record and project manager.  RIZZO is a
world-recognized engineering and construction management firm for dams. Since
the company first announced its intent to rebuild in early 2007, AmerenUE has
stressed that the reservoir would be rebuilt following criteria used in
current dam design and construction practice.  Insurance is expected to cover
substantially all the costs of the rebuild.
    AmerenUE is a subsidiary of St. Louis-based Ameren Corporation
(NYSE: AEE). Ameren companies serve 2.4 million electric customers and nearly
one million natural gas customers over a 64,000-square-mile area of Missouri
and Illinois. Built in 1963, AmerenUE's Taum Sauk Plant, as a pumped-storage
hydroelectric plant, stored water from the Black River in the upper reservoir
atop a mountain and released the water to generate electricity when power was
needed.
    FORWARD-LOOKING STATEMENTS
    Statements in this press 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 elsewhere in this release
and in our filings with the Securities and Exchange Commission, could cause
actual results to differ materially from management expectations suggested in
such forward-looking statements:    -- regulatory or legislative actions,
including changes in regulatory
       policies and ratemaking determinations;
    -- changes in laws and other governmental actions, including monetary and
       fiscal policies;
    -- costs associated with AmerenUE's Taum Sauk pumped-storage hydroelectric
       plant incident, including rebuilding costs;
    -- recoverability through insurance of costs associated with the Taum Sauk
       pumped-storage hydroelectric plant incident; and
    -- legal and administrative proceedings.


    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.
SOURCE  AmerenUE

Susan Gallagher, +1-314-554-2175, sgallagher@ameren.com, or Tim Fox,
+1-314-554-3120, tfox@ameren.com, or Mike Cleary, +1-573-681-7137,
mcleary@ameren.com, all of AmerenUE
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