AmerenUE feigns nuclear indecision
This editorial is just a place holder. We haven’t decided yet whether to write about one of the biggest issues facing Missouri legislators this year.
Our colleague Tony Messenger did. In a column published Tuesday, Mr. Messenger wrote that executives from utility giant AmerenUE danced around the “gorilla in the room” when they briefed lawmakers on energy issues.
That gorilla would be a new nuclear reactor the utility applied to build in Callaway County. Strictly as an option, of course.
“No decision has yet been made,” utility lobbyist Matthew Forck insisted. It’s the same line utility executives have used for months.
We wouldn’t want to jump the gun. But if we did decide to write about the issue, we’d mention that AmerenUE filed an 8,000-page application to build the plant with the U.S. Nuclear Regulatory Commission last July. It expects the facility to cost at least $6 billion.
AmerenUE asked state utility regulators for a rate hike that includes between $5 million and $7 million a year to pay for the application. The company spent about $50 million on it last year.
Maybe it’s just us, but we wouldn’t spend $50 million and fill out an 8,000-page application unless we were pretty sure we were going ahead.
There may be a good reason to spend that much money. As Mr. Forck told state senators, “nuclear (power) could be the option that is best for Missouri.”
But the only way to build it — according to House Speaker Ron Richard, R-Joplin, and Sen. Delbert Scott, R-Lowry City — is to repeal an important consumer protection law that voters enacted in 1976.
The law prohibits utilities from charging customers for the cost of building new power plants until those facilities begin to produce electricity. It’s commonly known as an “anti-CWIP law.” CWIP stands for construction work in progress.
Perhaps it was Mr. Richard and Mr. Scott who jumped the gun. AmerenUE executives have said they won’t make a final decision to build the plant — assuming there is a plant, or plans for a plant, which we’re not saying there are or are not — until at least 2011, assuming there is a 2011.
AmerenUE executives and the Public Service Commission don’t even want to discuss alternative ways to pay for the plant, assuming there is a plant and assuming the commission still is interested in public service, which we very much doubt.
Still, Mr. Richard and Mr. Scott want to repeal the anti-CWIP law this year. Mr. Richard proposed doing it as part of a package he’s calling the “Family Recovery Plan.” He never mentioned consumer protection or how higher electric bills would help anyone recover. He talked about creating jobs instead.
Mr. Scott introduced a bill to repeal the anti-CWIP law. He calls it the “Missouri Clean and Renewable Energy Construction Act.” It’s an environmental issue, see?
Here’s something they decided not to mention: Ameren and its executives gave more than $300,000 to political candidates during last year’s election campaign. At least $7,500 went to Mr. Richard. Mr. Scott got $150 from an Ameren lobbyist.
Speaking of which, Irl L. Scissors — a longtime advocate of environmental causes — announced he’s switching sides. He’s now working to repeal the anti-CWIP law. Boy, is he going to be embarrassed when he finds out there’s no real plan to build a plant.
Utility executives are sophisticated businessmen. They don’t throw money around unless they think it’ll earn some kind of return.
Legislators and electric customers are sophisticated, too, although they don’t always get credit for it. They know $50 million plus $300,000 equals one new nuclear plant coming down the pike.
We’ll be sure to point that out if we decide to write the editorial. We expect to make up our minds pretty soon.
Good thing, too. The suspense is killing us.


It’s not all that complicated. Ameren is saying that Callaway II is needed, and they’d like to place an order for the equipment..which takes several years to build…but they don’t have the ability to make the down payment to whoever is going to build it for them.
Without CWIP it’s not going to be built. It’s that simple. Why? Because Ameren can’t go out and borrow the equivalent of 125% of their total capitalization based on an unknown ability to repay the loan. They want to know, up front, whether the income stream to repay the loan is going to exist before they bankrupt themselves.
Nobody wants to see their rates go up. That’s a given. If, however, the lights go out because the rates that are being paid are insufficient to increase capacity to meet the demand, will those who sit on the sidelines saying “NO!” look in the mirror?