1135361--2/26/2010--CENTRAL_ILLINOIS_LIGHT

related topics

{cost, contract, operation}

{operation, natural, condition}

{debt, indebtedness, cash}

{capital, credit, financial}

{loss, insurance, financial}

{property, intellectual, protect}

{cost, regulation, environmental}

The electric and gas rates that UE, CIPS, CILCO and IP are allowed to charge are determined through regulatory proceedings and are subject to legislative actions, which are largely outside of their control. Any such events that prevent UE, CIPS, CILCO or IP from recovering their respective costs or from earning appropriate returns on their investments could have a material adverse effect on future results of operations, financial position, and liquidity. We are subject to various environmental laws and regulations that require significant capital expenditures or could result in closure of facilities, could increase our operating costs, and could adversely influence or limit our results of operations, financial position, and liquidity or expose us to environmental fines and liabilities. Future limits on greenhouse gas emissions would likely require UE, Genco, CILCO (through AERG) and EEI to incur significant increases in capital expenditures and operating costs, which, if excessive, could result in the closures of coal-fired generating plants, impairment of assets, or otherwise materially adversely affect our results of operations, financial position, and liquidity. Future limits on greenhouse gas emissions would likely require UE, Genco, CILCO (through AERG) and EEI to incur significant increases in capital expenditures and operating costs, which, if excessive, could result in the closures of coal-fired generating plants, impairment of assets, or otherwise materially adversely affect our results of operations, financial position, and liquidity. Our counterparties may not meet their obligations to us. Increasing costs associated with our defined benefit and postretirement plans, health care plans, and other employee-related benefits could materially adversely affect our results of operations, financial position, and liquidity. Our electric generating, transmission and distribution facilities are subject to operational risks that could materially adversely affect our results of operations, financial position, and liquidity. Our counterparties may not meet their obligations to us. Increasing costs associated with our defined benefit and postretirement plans, health care plans, and other employee-related benefits could materially adversely affect our results of operations, financial position, and liquidity. Our electric generating, transmission and distribution facilities are subject to operational risks that could materially adversely affect our results of operations, financial position, and liquidity. Our natural gas distribution and storage activities involve numerous risks that may result in accidents and other operating risks and costs that could materially adversely affect our results of operations, financial position, and liquidity. Even though agreements have been reached with the state of Missouri and the FERC, the breach of the upper reservoir of UE s Taum Sauk pumped-storage hydroelectric facility could continue to have a material adverse effect on Ameren s and UE s results of operations, liquidity, and financial condition. Our natural gas distribution and storage activities involve numerous risks that may result in accidents and other operating risks and costs that could materially adversely affect our results of operations, financial position, and liquidity. Even though agreements have been reached with the state of Missouri and the FERC, the breach of the upper reservoir of UE s Taum Sauk pumped-storage hydroelectric facility could continue to have a material 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. Our energy risk management strategies may not be effective in managing fuel and electricity procurement and pricing risks, which could result in unanticipated liabilities or increased volatility in our earnings and cash flows. 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. Our energy risk management strategies may not be effective in managing fuel and electricity procurement and pricing risks, which could result in unanticipated liabilities or increased volatility in our earnings and cash flows.

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1135361--2/26/2010--CENTRAL_ILLINOIS_LIGHT_CO