Ameren Corporation moves up net-zero carbon emissions goal by
five years
ST.
LOUIS, June 23, 2022 /PRNewswire/ -- Ameren
Missouri, a subsidiary of Ameren Corporation (NYSE: AEE), is
announcing an update to its 20-year energy plan to ensure
reliability and resiliency for customers for years to come. The
updated plan accelerates clean energy additions, reduces carbon
emissions even further in the short-term and moves up Ameren
Corporation's net-zero carbon emissions goal by five years to
2045.
LONG-TERM ENERGY PLAN FOCUSES ON CLEAN AND RELIABLE ENERGY
FOR MISSOURIANS
The need for reliable, resilient and affordable energy has never
been greater. Ameren Missouri's updated Integrated Resource Plan
(IRP) addresses meeting those critical needs over the coming
decades.
"Our newly updated long-term energy plan accelerates the
addition of clean wind and solar energy sources and further reduces
emissions by 2030," said Mark
Birk, chairman and president of Ameren Missouri. "By
thoughtfully transitioning energy generation sources, we continue
to get the energy we provide as clean as we can, as fast as we can,
without compromising on reliability, resiliency or affordability
for our customers."
Highlights of the updated plan include:
- Accelerating Ameren's companywide net-zero carbon emissions
goal to 2045. This goal now encompasses both Scope 1 and 2
emissions including other greenhouse gas emissions of methane,
nitrous oxide and sulfur hexafluoride. This goal is dependent on a
variety of factors including cost-effective advancements in
innovative clean energy technologies as well as constructive
federal and state energy and economic policies.
- Increasing the 2030 carbon emissions reduction target from 50%
to 60% based on 2005 levels. Ameren maintains its interim goal of
an 85% carbon emissions reduction by 2040. These goals are
consistent with the objectives of the Paris Agreement and limiting
global temperature rise to 1.5 degrees Celsius.
- Retiring more than 3,500 MW of fossil-fired generation by 2030,
an increase from the 2020 IRP by more than 1,600 MW. By the end of
2030, three of the four Ameren Missouri coal-fired facilities are
expected to retire.
- Adding 2,800 MW of clean wind and solar generation by 2030, an
increase of 400 MW from the 2020 IRP, representing a potential
investment of approximately $4.3
billion.
- Adding a total of 4,700 MW of renewable generation by 2040,
which reflects a potential investment of approximately $7.5 billion.
- Deploying 800 MW of battery energy storage, representing a
potential investment of approximately $650
million.
"We're building upon our previous commitments to support
communities across Missouri by
investing billions of dollars in clean energy, creating thousands
of jobs and growing our solid base of carbon-free generation," said
Ajay Arora, chief renewable
development officer at Ameren Missouri. "Our plan relies on a broad
mix of resources alongside focused energy efficiency and demand
response programs, which further support families and businesses in
the state by saving them money on their energy statements."
New technologies are critical to achieving the company's
net-zero goal. To maintain energy reliability and resiliency for
customers after the retirement of three coal-fired energy centers
by the end of 2030, the company plans a 1,200 MW combined-cycle
energy center to be in service by 2031. Plans call for this
dispatchable resource to be capable of utilizing a portion of
hydrogen fuels and the ability to be retrofitted for carbon capture
and storage once those technologies become fully mature. The
location of the planned energy center has not yet been
determined.
"Ensuring reliability and resiliency while continuing to reduce
emissions is imperative," Birk said. "A responsible transition,
taking advantage of maturing technologies when they're ready, can
accomplish both."
The company also plans to continue robust, cost-effective
customer energy efficiency and demand response programs with peak
demand reduction of more than 1,200 MW by 2030 and cumulative
energy savings surpassing 2.5 million megawatt-hours by 2030.
That's enough energy to power more than 220,000 homes for a year.
Since 2019 and inclusive of preliminary 2021 data, these programs
have saved approximately 800,000 megawatt-hours.
The plan is available at AmerenMissouri.com/Clean, along with
detailed information about clean energy and energy efficiency
programs for residential customers and businesses. In addition to
this update, Ameren Missouri anticipates filing its regular,
triennial IRP in September 2023.
WHAT EXPERTS ARE SAYING ABOUT THE PLAN
Integral to the IRP process is an ongoing dialogue and
information sharing with stakeholders including consumer,
environmental and community groups. Leaders from across the region
support Ameren's updated plan and its focus on reliability while
accelerating renewable energy additions.
"Southeast Missouri State University
is proud to be an Ameren Missouri customer and a partner on the
Neighborhood Solar project being constructed on our main campus in
Cape Girardeau. This project will
bring clean, renewable solar energy to our community, including our
university. The solar panels also provide covered parking at the
Show Me Center. We are excited and thankful for these benefits
which are part of Ameren Missouri's Smart Energy Plan and the
company's efforts to bring more green energy to the grid as part of
its commitment to a net-zero carbon emissions goal by 2045. This
project represents meaningful progress that will impact our
students, our state, and our energy future." – Dr.
Carlos Vargas, President,
Southeast Missouri State
University
"We rely on energy for so much in our daily lives. We count on
reliable electricity to provide lighting, heating and cooling for
our homes and businesses; power our many devices; and provide
energy to our factories that manufacture products and provide jobs.
With so many states announcing the likelihood of summer brownouts
or blackouts, it is important that we recognize Ameren Missouri for
always providing safe, secure and stable energy for its millions of
customers and for bringing more renewable energy into their
generation mix as they look to the future." –
Chris Ventura, Executive
Director, Consumer Energy Alliance – Midwest
"The Missouri Chamber recognizes the advantage of reliable,
resilient and affordable electricity and natural gas in retaining
and attracting business to our state. The Missouri Chamber supports
Ameren Missouri's all-of-the-above approach to electricity
generation including coal, natural gas, nuclear, hydro and
renewable sources as they make the transition to clean energy. We
also support their grid modernization efforts that drive greater
resiliency, rate affordability and economic development
opportunities." – Dan Mehan,
Missouri Chamber of Commerce and
Industry
Ameren Missouri has been providing electric and gas service for
more than 100 years. Ameren Missouri's mission is to power the
quality of life for its 1.2 million electric and 135,000 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 on Twitter at
@AmerenMissouri or Facebook.com/AmerenMissouri.
Forward-looking Statements
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, projections, strategies,
targets, estimates, objectives, events, conditions, and financial
performance. In connection with the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995, Ameren and Ameren
Missouri 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 and Ameren
Missouri's Annual Report on Form 10-K for the year ended
December 31, 2021, and their other
reports filed with the Securities and Exchange Commission under the
Securities Exchange Act of 1934, could cause actual results to
differ materially from management expectations suggested in such
"forward-looking" statements. All "forward-looking" statements
included in this report are based upon information presently
available, and Ameren and Ameren Missouri, except to the extent
required by the federal securities laws, undertake no obligation to
update or revise publicly any "forward-looking" statements to
reflect new information or current events.
- regulatory, judicial, or legislative actions, and any changes
in regulatory policies and ratemaking determinations, that may
change regulatory recovery mechanisms, such as those that may
result from the impact of a final ruling to be issued by
the United States Court for the
Eastern District of Missouri
regarding its September 2019 remedy
order for the Rush Island Energy Center, the Missouri Public
Service Commission ("MoPSC") staff review of the planned Rush
Island Energy Center retirement;
- the effect on Ameren Missouri's investment plan and earnings if
an extension to use plant-in-service accounting ("PISA") is not sought by Ameren Missouri or
approved by the MoPSC;
- the effect on Ameren Missouri of any customer rate caps
pursuant to Ameren Missouri's election to use the PISA, including an extension of use beyond
2023 if requested by Ameren Missouri and approved by the MoPSC
under current Missouri law, or
beyond 2028 if requested and approved by the MoPSC if Missouri Senate Bill 745 is enacted;
- the effects of changes in federal, state, or local laws and
other governmental actions, including monetary, fiscal, foreign
trade, and energy policies;
- the effects of changes in federal, state, or local tax laws,
regulations, interpretations, or rates, and challenges to the tax
positions taken by the Ameren Companies, if any, as well as
resulting effects on customer rates;
- the effects on energy prices and demand for our services
resulting from technological advances, including advances in
customer energy efficiency, electric vehicles, electrification of
various industries, energy storage, and private generation sources,
which generate electricity at the site of consumption and are
becoming more cost-competitive;
- the effectiveness of Ameren Missouri's customer
energy-efficiency programs and the related revenues and performance
incentives earned under its Missouri Energy Efficiency Investment
Act programs;
- our ability to control costs and make substantial investments
in our businesses, including our ability to recover costs and
investments, and to earn our allowed returns on equity, within
frameworks established by our regulators, while maintaining
affordability of our services for our customers;
- the cost and availability of fuel, such as low-sulfur coal,
natural gas, and enriched uranium used to produce electricity; the
cost and availability of purchased power, zero emission credits,
renewable energy credits, emission allowances, and natural gas for
distribution; and the level and volatility of future market prices
for such commodities and credits;
- the cost and availability of transmission capacity for the
energy generated by Ameren Missouri's energy centers or required to
satisfy Ameren Missouri's energy sales;
- the ability to obtain sufficient insurance, or in the absence
of insurance, the ability to timely recover uninsured losses from
our customers;
- the impact of cyberattacks on us or our suppliers, which could,
among other things, result in the loss of operational control of
energy centers and electric and natural gas transmission and
distribution systems and/or the loss of data, such as customer,
employee, financial, and operating system information;
- business and economic conditions, which have been affected by,
and will be affected by the length and severity of, the COVID-19
pandemic, including the impact of such conditions on interest rates
and inflation;
- disruptions of the capital markets, deterioration in credit
metrics of the Ameren Companies, or other events that may have an
adverse effect on the cost or availability of capital, including
short-term credit and liquidity;
- the actions of credit rating agencies and the effects of such
actions, including any impacts on our credit ratings that may
result from the economic conditions of the COVID-19 pandemic;
- the inability of our counterparties to meet their obligations
with respect to contracts, credit agreements, and financial
instruments, including as they relate to the construction and
acquisition of electric and natural gas utility infrastructure and
the ability of counterparties to complete projects, which is
dependent upon the availability of necessary materials and
equipment, including those obligations that are affected by
disruptions in the global supply chain caused by the COVID-19
pandemic;
- the impact of weather conditions and other natural phenomena on
us and our customers, including the impact of system outages and
the level of wind and solar resources;
- the construction, installation, performance, and cost recovery
of generation, transmission, and distribution assets;
- the effects of failures of electric generation, electric and
natural gas transmission or distribution, or natural gas storage
facilities systems and equipment, which could result in
unanticipated liabilities or unplanned outages;
- the operation of Ameren Missouri's Callaway Energy Center,
including planned and unplanned outages, as well as the ability to
recover costs associated with such outages and the impact of such
outages on off-system sales and purchased power, among other
things;
- Ameren Missouri's ability to recover the remaining investment
and decommissioning costs associated with the retirement of an
energy center, as well as the ability to earn a return on that
remaining investment and those decommissioning costs;
- the impact of current environmental laws and new, more
stringent, or changing requirements, including those related to New
Source Review and CO2, other emissions and discharges,
Illinois emission standards,
cooling water intake structures, coal combustion residuals, energy
efficiency, and wildlife protection, that could limit or terminate
the operation of certain of Ameren Missouri's energy centers,
increase our operating costs or investment requirements, result in
an impairment of our assets, cause us to sell our assets, reduce
our customers' demand for electricity or natural gas, or otherwise
have a negative financial effect;
- the impact of complying with renewable energy standards in
Missouri and Illinois and with the zero emission standard
in Illinois;
- Ameren Missouri's ability to construct and/or acquire wind,
solar, and other renewable energy generation facilities, retire
energy centers, and implement new or existing customer
energy-efficiency programs, including any such construction,
acquisition, retirement, or implementation in connection with its
Smart Energy Plan, integrated resource plan, or emissions reduction
goals, and to recover its cost of investment, related return, and,
in the case of customer energy-efficiency programs, any lost
margins in a timely manner, which is affected by the ability to
obtain all necessary regulatory and project approvals, including
certificates of convenience and necessity from the MoPSC or any
other required approvals for the addition of renewable
resources;
- the availability of federal production and investment tax
credits related to renewable energy and Ameren Missouri's ability
to use such credits; the cost of wind, solar, and other renewable
generation and storage technologies; and our ability to obtain
timely interconnection agreements with the Midcontinent Independent
System Operator, Inc. or other regional transmission organizations
at an acceptable cost for each facility;
- cost-effective advancements in clean energy technologies, and
the impact of constructive federal and state energy and economic
policies with respect to those technologies;
- labor disputes, work force reductions, changes in future wage
and employee benefits costs, including those resulting from changes
in discount rates, mortality tables, returns on benefit plan
assets, and other assumptions;
- the impact of negative opinions of us or our utility services
that our customers, investors, legislators, regulators, or other
stakeholders may have or develop, which could result from a variety
of factors, including failures in system reliability, failure to
implement our investment plans or to protect sensitive customer
information, increases in rates, negative media coverage, or
concerns about environmental, social and governance practices;
- the impact of adopting new accounting guidance;
- the effects of strategic initiatives, including mergers,
acquisitions, and divestitures;
- legal and administrative proceedings; and
- acts of sabotage, war, terrorism, or other intentionally
disruptive acts.
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,
Ameren and Ameren Missouri undertake no obligation to update or
revise publicly any forward-looking statements to reflect new
information or future events.
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SOURCE Ameren Corporation