Union Electric Company

  • Overview

Union Electric unites electricity and natural gas services under the Gateway Arch. The utility (a subsidiary of Ameren) operates as Ameren Missouri and serves 1.2 million power customers and 127,000 gas customers. The utility's service territory includes 57 Missouri counties; more than half of its customers reside in the St. Louis metropolitan area. The company owns about 3,270 miles of natural gas transmission and distribution mains and 33,000 of electric distribution lines (and 295 miles of power transmission lines). Ameren Missouri owns or has interests in nine power plants (primarily thermal) with a capacity of almost 10,300 MW, and it also engages in wholesale power transactions.

Geographic Reach

The company serves customers in a 24,000-square-mile area service area (57 counties) in central and eastern Missouri.

Operations

Ameren Missouri accounts for about 60% of parent Ameren's total power generation capacity. Ameren Missouri sources gas supply via the  the interstate pipeline systems of Panhandle Eastern Pipe Line , Trunkline Gas, Natural Gas Pipeline Company of America, and the Mississippi River Transmission Corporation.

It also has uranium and fabrication contracts to procure the fuel supply for its Callaway nuclear energy center.

Sales and Marketing

Its largest customer is aluminum producer Noranda, which has a major plant in Missouri.

Financial Performance

The utility's revenues increased by 8% to $3.5 billion in 2013 thanks to higher electric rates (based on a 9.8% return on equity, a capital structure composed of 52.3% common equity, and a rate base of $6.8 billion) and a $1 million annual increase in gas rates.

However, Ameren Missouri's net income declined by 5% to $398 million in 2013 due to higher fuel and purchased power costs.

Strategy

In a move to go green (to meet state environmental goals), in 2014 the company announced plans to build a multi-million-dollar solar energy facility on a 19-acre site next to its electrical substation in O’Fallon. The solar plant’s 19,000 panels will provide 5.7 MW of electricity, enough to power some 650 residences in the St. Louis area.

The company also has a major environmental compliance strategy to meet stringent federal requirements for significant reductions in sulfur dioxide emissions via a long-term contract for 91 million tons of ultra-low sulfur coal from Peabody Energy through 2017. The purchase of the cleaner coal, along with the already completed installation of $600 million-worth of scrubbers at its fossil-fueled power plants allows Ameren Missouri to avoid needing to make additional expensive plant retrofits and making major rate hikes. 

Company Background

Seeking to bring down power costs for its business customers, in 2009 the company launched Business Energy Efficiency Program. In the first year of operating the scheme the company received more than 1,000 applications from business customers for the installation of more efficient lighting, motors, heating/ventilation/air conditioning (HVAC), and refrigeration units, and paid out more than $1.8 million in program incentives.

Ameren Missouri was founded in 1922 and is the successor of a number of companies, the oldest of which was set up in 1881.

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Union Electric Company


1901 Chouteau Ave
Saint Louis, MO 63103-3003
Phone: 1 (314) 621-3222
Fax: 1 (314) 5543268
www.ameren.com/sites/aue/Pages/home.aspx

STATS


  • Employer Type: Subsidiary
  • Vp And Treasurer: Jerre Birdsong
  • Chief Technology Officer: Robert Carothers
  • President: Glen Hastings

Major Office Locations

  • Saint Louis, MO

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