This change presents an opportunity today, but it is also a risk that must be managed over the long term. I believe the location and low cost of our generation assets position Ameren very well to compete in the new Illinois market. And, with our entry into the Midwest Independent Transmission System

Operator in 2004, led by Dave Whiteley, we are equally well positioned to compete beyond our traditional market area. Another regulatory challenge is that electric rates for Ameren’s operating companies have been either frozen or declining for periods ranging from 12 years to 22 years. As I have said, due to our cost control efforts, we have succeeded even with these fixed or declining rates – but we must be ready for the future. During 2005 and 2006, we will submit regulatory filings in Missouri and Illinois intended to ensure that you, our shareholders, continue to earn a fair return on your investments.

A CULTURE OF SUCCESS

The intent of the combined initiatives I’ve described is to raise Ameren’s overall performance to industry-leading levels. We are no longer content to rank “among” the best utilities in the U.S. We want to be “the best.” Of course, achieving that distinction requires highly engaged employees who are focused and committed to great results.

We have these employees at Ameren, and in 2004, we established a new program to acknowledge them. The President’s Performance Leadership Award affirms our belief that people are the foundation of our success and the key to achieving our vision. Part of a broader culture-change effort being led by Donna Martin, our chief human resources officer, this program recognizes a small number of Ameren employees as the “best of the best” each year by rewarding and recognizing high achievers at Ameren – the kind of employees we will need to continue delivering on our promises to you, our shareholders, in 2005 and beyond.