100826--2/29/2008--AMEREN_CORP

related topics
{cost, contract, operation}
{capital, credit, financial}
{property, intellectual, protect}
{debt, indebtedness, cash}
Increased federal and state environmental regulation will cause UE, Genco, CILCO (through AERG) and EEI to incur large capital expenditures and increased operating costs. Future limits on greenhouse gas emissions would likely require UE, Genco, CILCO (through AERG) and EEI to incur significant additional increases in capital expenditures and operating costs. Such expenses, if excessive, could result in the closures of coal-fired generating plants. Our counterparties may not meet their obligations to us. Increasing costs associated with our defined benefit retirement plans, health care plans, and other employee-related benefits may adversely affect our results of operations, financial position, or liquidity. UE s, Genco s, AERG s, Medina Valley s and EEI s electric generating facilities are subject to operational risks that could result in unscheduled plant outages, unanticipated operation and maintenance expenses, liability, and increased purchased power costs. Even though agreements have been reached with state and federal authorities, the breach of the upper reservoir of UE s Taum Sauk pumped-storage hydroelectric facility could continue to have an adverse effect on Ameren s and UE s results of operations, liquidity, and financial condition. Genco s, AERG s, and EEI s electric generating facilities must compete for the sale of energy and capacity, which exposes them to price risks. UE s ownership and operation of a nuclear generating facility creates business, financial, and waste disposal risks.

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