Making auto seating and door trim for Toyota trucks may seem a highly specialized small enterprise, but moving this industry to tiny Lawrenceville, Ill., represents a $12 million investment.
AmerenCIPS' economic development efforts helped bring this industry, Trim Masters, Inc., to Lawrenceville. The plant's AmerenCIPS-designed and installed distribution facilities are expected to attract other industrial customers to this growing area.
With headquarters in Harrodsburg, Ky., the maker of seating and door panel systems was created in 1987 as a joint venture between Johnson Controls, Araco and Toyota Tsusho America, Inc.
In Missouri, you'll find yet another major distribution services customer Emerson Electric Co.'s World Headquarters. In 1998, Emerson selected AmerenUE in a competitive bidding process to design and build an electrical substation, replacing decades-old equipment. This new equipment will ensure a high level of power reliability for several Emerson divisions located at the Ferguson, Mo., site.
Keeping the electrons moving to industrial and commercial enterprises and residents across multiple states requires an investment in generation and transmission facilities. These investments kept several plants generating at the highest levels this past summer when rising temperatures and other utilities' energy shortages sent energy prices soaring.
To further bolster generation supply, Ameren committed in 1998 to purchase six combustion turbines - primarily fueled by natural gas. They are slated to be in operation in 2000 and 2001, adding more than 700 megawatts to our system's more than 11,000 megawatts of total capacity.
On the transmission side of our energy delivery system, in 1998 we fulfilled a regulatory condition for merger approval by joining 9 other utility companies to form the Midwest Independent System Operator (Midwest ISO). Ameren management played a major role in shaping the rules for the Midwest ISO. In the summer of 1998, the Federal Energy Regulatory Commission conditionally approved the entity, which will operate, but not own, transmission systems. On an hour-by-hour basis, the Midwest ISO would play traffic cop for buyers and sellers using our transmission system. Expected to be in operation by the year 2001, the Midwest ISO covers 8 states and represents portions of 40,000 miles of transmission line and 62,000 megawatts of electric power. Collectively, the member companies serve more than 7 million customers. In 1998, we invested in improvements and new technology to relieve major bottlenecks and ease the flow of power along transmission systems in Illinois.
Ameren also centralized dispatching to efficiently respond to customers who face power interruptions. And to analyze power disruption data and more efficiently dispatch crews, the company is introducing sophisticated, Ameren-developed computer systems across its territory. AmerenUE customers can get automated responses when they call to find out when to expect their power to be restored - a service that will be systemwide in 1999.
To help customer contact staffs anticipate and respond to service and product needs, Ameren is creating a new state-of-the-art customer information system. It can handle complex billing arrangements and provide comprehensive customer information.
Finally, efficient natural gas distribution, use of financial instruments to hedge against volatile pricing and upgraded natural gas storage fields help ensure delivery of affordable energy to our 300,000 natural gas customers. Storing natural gas in the summer, when the fuel is less expensive, and withdrawing it in winter, when its value is at a premium, help us reduce required reserved pipeline capacity, lowering costs. Storage also helps us avoid price spikes and offers a reliable supply in bitter winter weather, when purchased gas availability declines.
What innovative technology does one of the nation's top universities and its renowned medical school purchase from our company? Ameren Abacus. Washington University in St. Louis has joined industrial giants in embracing Ameren Abacus. This wireless energy management tool allows customers to monitor energy use within each building, department or production process. Ameren Abacus combines state-of-the-art meter technology with the power of the Internet to help customers make informed operating decisions. This product is one of a number we've developed to leverage our investment in new technologies.
Another is a test product - Ameren Abillity, a central processing point for customers' many utility bills - water, sewer, waste disposal, and yes, electric and natural gas service. The typical Ameren Abillity customer pays 80 or more utility bills for 20 or more locations. Consumption and summary information goes to that customer via the Internet, a computer disk or a printed copy. Through Ameren Abillity, Ameren staffers help resolve discrepancies, saving customers administrative time and money. Ameren Abillity has helped businesses identify high-energy-use processes, facilities and time periods. Ameren Abillity also helps customers compare various energy providers' pricing, giving businesses a tool for selecting power providers in states where provider choice is available.
Ameren is also using the Internet to offer enhanced automated bill presentment and payment services to the residential customer. In 1997, AmerenUE customers began paying their bills through several payment options - pay-by-phone, pay-by-web, and direct payment. Now more than 40,000 customers use these services that allow them to authorize automated bank account deductions of both electric and natural gas charges. We are launching yet another payment service. It makes paying bills a speedy, paperless, electronic round-trip process - sending a replica of the energy bill through the Internet. Once the customer okays the payment, the service directly withdraws the payment from the customer's checking or savings account, while updating records through a link to the customer's financial software.
Our customers have also benefited from the expansion of Ameren's network of automated meters. Providing hourly usage data, these meters are now in 800,000 homes and businesses in the St. Louis area. With the world's largest network, Ameren can provide greater information to customers on energy usage, respond to outages more quickly and eliminate estimated bills - to name only a few of the benefits.
In 1998, we began installing automated meters in rural areas. Our goal is to have 1.3 million meters in the homes and businesses of AmerenUE Missouri and Illinois electric and natural gas customers by the year 2000. The success of this radio-based, wireless network has led Ameren to pursue a new business venture that would offer meter installation and energy information services.
Finally, even Ameren's less high-tech facilities are generating added revenue. In 1998, we signed joint-use agreements with major wireless companies, granting them access to dozens of our distribution poles and transmission towers. These phone and cable companies rent space on our poles for personal communications service antennas.
Electricity is fast becoming one of the nation's largest commodity markets.The number of independent power trading companies approved by the Federal Energy Regulatory Commission has grown to more than 400; more than 75 utilities have opened trading subsidiaries. AmerenEnergy, the corporation's energy marketing and trading affiliate, uses advanced state-of-the-art technology to track the buying and selling of electricity and natural gas and to provide customized energy services.
AmerenEnergy also has a seasoned corps of risk management experts. These professionals are not only structuring products to protect customers from volatile pricing, they are also working to limit Ameren's own exposure to price movements. Another of the corporation's major ventures involves partnerships with major design and engineering firms. Foremost among these is Gateway Energy Systems, a firm that designs, builds, finances, owns and operates utility systems for large institutional and industrial customers. The types of utilities include steam, hot water, chilled water, compressed air, water treatment and wastewater treatment. Gateway Energy is a joint venture of Ameren, Environmental Management Corp. and Energy Equities LLC. Gateway Energy has several pending projects, including management of an energy center for a major office and research campus. In 1998, Gateway Energy began construction of a $20 million steam facility through a 20-year contract with a Fortune 500 company. Ventures like this one, attractive products and services, coupled with a continued focus on cost control, will allow our company to capitalize on our strong fundamentals, while pursuing effective solutions. Given these strengths, we are confident of our ability to manage the changes that are reshaping our industry.