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11.28.2007 5:13 pm

Is the Ameren settlement sufficient? Should the reservoir be rebuilt?

St. Louis Post-Dispatch

It’ll cost Ameren nearly $180 million to settle the mess that was made almost two years ago, when the Taum Sauk reservoir burst, spilling millions of gallons through Johnson’s Shut-Ins State Park.

Here’s a few paragraphs from our story today:

Ameren Corp. reached a settlement agreement that will require the state’s largest utility company to pay $179.7 million in cash and property to compensate for damages resulting from the Taum Sauk reservoir collapse, the Missouri attorney general’s office said this morning.

Ameren’s settlement brings an end to months of negotiations between the St. Louis-based company and three state agencies, said Scott Holste, a spokesman for the attorney general. The agreement will end a lawsuit filed in December by Attorney General Jay Nixon and settle all other state demands for compensation.

The story for Thursday’s Post-Dispatch says the settlement has the practical effect of letting Ameren move ahead with rebuilding the reservoir — a move that some environmentalists don’t like, but some residents of Reynolds County like a lot.

Is the settlement sufficient? Should the reservoir be rebuilt?

15 comments

Comments are closed.

Sadly, the sufficiency of the amount is a moot point. This judgement against them will somehow be added to consumer costs rather than coming out of executives bonuses and high pay or company profits.

— nutmegs
5:28 pm November 28th, 2007

Why not? It’s going to be rebuilt using current technology and current design: basically a solid concrete liner that will include a spillway. The rebuilding costs will be paid by insurance, not the ratepayers.

What WOULD environmentalists like for electric generation? The answer is that they want to say ‘no’ to virtually everything when it comes right down to it. Hydro is about as “green” as it gets, folks.

— hs
5:30 pm November 28th, 2007

The answer to the rebuild question is no, but no one asked me.

This pumped storage hydro isn’t a net energy source. It never has been. It just moves the energy availability around the clock, and makes a tidy profit for Ameren doing so. There are many types of green hydro dams– this isn’t one of them. The major reason they want to rebuild is because of the major investment they have in the newly refurbished power plant. They’ve not gotten their money back out of that, and therefore feel compelled to try again.

I visited the old facility about four or five times during its lifetime starting in 1963 or 64: the upper and lower reservoirs, inside the power plant twice. This company lied to the public about the old reservoir (said it was in solid rock when it was a fill-dam and never changed that original story until it came crashing down). They told the public it could not over-top. It did. They told people there were control workers on site (they weren’t– they ran it from Bagnell Dam).

How many lies does one have to tolerate before someone says, “Hey, I don’t trust that corporation to tell the truth anymore?”

The only think AmerenUE could do to mitigate the rebuild would be to allow public access down the mountain on the scar side. Put in a museum on THEIR property to explain the incident and the geology it uncovered. After it is complete, allow public access up the mountain once again, and tell THEIR story — the old engineering and the new. Every time this has been suggested, there are a million and one reasons why this is a ‘bad idea.’

At least Union Electric understood they needed to make a good faith PR effort to actually educate the public on this installation, even if the explanation was liberally laced with wink-wink lies. Redi-Kilowatt and all that.

AmerenUE doesn’t have a clue. I saw the leaks in the sidewalls in 2001 with my very own eyes. And knowing the geology below, I have no faith in their ability to make this thing ‘bombproof’ the second time around.

— Teresa
7:16 pm November 28th, 2007

If this collapse would have happened any time other than in the middle of winter, Ameren would be out of business. I cannot believe the state is allowing Ameren to build this again.

j

— John2
4:35 am November 29th, 2007

John2 (#6) says it all. Had this happened at any other time of year, the loss of human life would have been catastrophic. The lawsuits filed by the families of the dead would alone have bankrupted Ameren. I’m sure criminal charges would have been filed. There wouldn’t be any Ameren left to rebuild Taum Sauk.

Now, I’ll be the first to admit that no amount of money will undo what’s been done. We’ve had that discussion on this blog before. And I’m certainly glad that the fine will not come out of the customers’ pockets (or is that just another lie?) But allowing these clowns to rebuild what should have never existed in the first place boggles my mind. I mean, my God, it’s not like this “beast” ever did produce that much power in the first place. I have one suggestion. Maybe the Big Dogs at Ameren should be forced to house their families downstream of the “damned dam.” That might be a safety incentive!

— Pat Carpenter
7:17 am November 29th, 2007

I meant John2 (#4) Unless I’m clairvoyant and can see who was going to post the #6th comment. (Could be because I’m sitting here in a cubicle where the temperature is 62 degrees and my brain as well as my fingers are frozen.)

Just another little thought. We’ve got a potential icestorm coming in Saturday morning. Considering Ameren never got their butts into the ‘hood to do any tree trimming or line repair, I sure hope I have power this weekend. Oh, that’s right, they had to save up their nickles and dimes to come up with this settlement.

I liked Teresa’s remarks too. She covered a lot of ground on what all is wrong with this picture. I still can’t believe that there were no personnel at Taum Sauk 24/7. That’s the one issue I really have a problem getting my mind around. Given the potential–even if it were only freak outside chance–for a disaster, there was no one on-site to physically monitor what the hell was going on???

Something else I thought should be mentioned (in light of the so-called “power production” at the Taum Sauk facility.) I understand that one of the reasons Ameren’s customers enjoyed fairly cheap engery for so many years was that the company owned a massive production plant in Louisiana that kept our lights on and our air cons/furnaces humming. But someone at Ameren decided that since the Louisiana plant was so productive, they could make more money selling that productivity to other power companies rather than “waste” it on their own customers. Even at that, Taum Sauk was a “back up” facility, popping out maybe 6% extra energy during summer heat waves. It’s not like we’re all going to be having rolling brown-outs if this reservoir isn’t rebuilt.

There are so many things wrong with this utility company. If I were their PR provider, I’d be running for the hills. You can’t make a silk purse out of a sow’s ear, and we’re stuck with a real porker!

— Pat Carpenter
8:03 am November 29th, 2007

I agree with #1 post from Nutmegs. What else can you say? They are like many companies, putting safety in the back seat behind profits. They knew, they were warned, yet they continued unsafe practices and runined a gift from Mamma Nature that can’t be replaced easily. Meanwhile, the media and this administration continues to say alternative energy sources can’t provide what we need. BULL! The technology was in place four decades ago, but both policial parties chose to give subsidies to the “underground” utilities like coal, gas, nuc-u-lar (see GB I am listening) and oil. Our maker is shaking her head at us saying…BUT I PUT THEM RIGHT IN FRONT OF YOU TO PICK UP AND USE.

— Slugger
9:46 am November 29th, 2007

A few comments RE the above:

Teresa, as I’m sure you know, there is NO energy conversion technology that delivers more energy that is put into it. A storage system, which is what Taum Sauk IS, by definition delivers less power than is put into it. What it does do is two important functions: It stores power produced during off-peak hours and provides it during peak hours, and the cost differential from one time to another provides you, the customer, with an economic benefit.

The problems with the original system are all addressed within the rebuilding designs:

The new design is essentially a concrete basin poured into the shell of the mountain. There will certainly be earthwork around the outside, but the actual basin will be solid concrete.

The new design does include a spillway, in the event an overflow occurs.

The new design includes a completely different type of level measuring and controlling equipment.

The new design includes real-time video surveillance.

Also, many of you guys seem to think it would be a good idea for Ameren to go bankrupt as “punishment”. Do any of you have any idea what that would mean? Fundamentally, it would mean musical chairs at the top, and Ameren would be absorbed into a bigger utility conglomerate. You think it’s tough dealing with Ameren, where at least you can walk into the downtown building? Consider what would happen if Ameren were a part of American Electric Power or Southern Companies. There, I can guarantee that the person on the other end of the phone would be hundreds of miles from St. Louis, and your ability to actually talk to someone who could do something would be about nil.

— hs
4:20 pm November 29th, 2007

I don’t buy the economic benefit to the customer. The economic benefit goes to the power co. I keep a/c at about 80, heat at about 67 (electric furnace) and rarely have a utility bill over $100. No thanks to the lectric company.

I also don’t need a lesson on pumped hydro. I learned that stuff first when I was 7 years old. Did you?

BTW, you can pour all the concrete you want, but the concrete of any construction is no more strong than the rock on which it rests. The rock of that mountain has faults in it. They didn’t know it when they built it, and tried to engineer around it. Duh. Ever wonder why the original reservoir was such a strange shape? It didn’t matter. That much water stuck up in the sky is gonna want to come down eventually.

Yes, I will probably be dead before a new pumped hydro reservoir fails. But mark my words: it will fail. And next time, I doubt if we will be so lucky.

It makes no sense to put all that money into rebuilding Taum Sauk, when a second unit at Callaway would make infinitely more sense from a financial and energy standpoint.

— Teresa
11:53 pm November 29th, 2007

Well, well. Here we have resident expert Teresa spouting all kinds of professional engineer talk. All of you need to consider one thing. What do the people who live in the area think about the plant being rebuilt? Don’t try to tell me they don’t want it either! If not for the taxes generated by the plant, several local taxing entities would have to have severe cut backs, etc. Also, Pat #6, in my life time AmerenUE or UE never owned a power plant in Louisiana. Do you mean the state of LA or the city in MO? Either way, Ameren or UE has only closed disposed of four plants in it’s history. (Cahokia, Mound St., Ashley, and Venice 1 and 2.

— leftout
4:51 am November 30th, 2007

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