Seeking Alpha

CrossProfit_ » Comments » AEE

  • Coal Cost Reduction Saves Big for Utilities [View article]
    Re: Ameren Corporation (AEE), total of 1.2M electricity and 125,000 gas customers in Missouri in addition to 1.2M electricity and 835,000 gas customers in Illinois. Of particular significance is the 20% to 40% price increase to Illinois electric customers effective 01/01/07 after a 10 year rate freeze and supply contracts expired at end of 2006.

    Competitors are trying to lure customers away emphasizing the new rate hikes (see; electricityiq.com/illi... ). Overall, rate hike should yield higher returns, most likely leading to higher dividends as well.

    Company expects cost of coal to increase 15-20% in 2007 from current levels! AEE hedges quite heavily. Lower spot prices probably won’t kick in for another 6 to 8 months (presumption only – no info).

    CrossProfit
    (CrossProfit website is down until the end of the month. All urgent notices posted on SA, in short comments).
    Jan 14 08:12 am |Rating: 0 0 |Link to Comment
More on AEE by CrossProfit_
Comments by Ticker
AA, AAP, AAPL, ABK, ABT, ABX, ACI, ADBE, ADM, ADP, ADRE, ADRU, ADSK, AEE, AEO, AET, AFG, AGEN, AGN, AGO, AHBIF.PK, AHL, AIG, AKAM, AL, ALE, ALL, ALTR, ALVR, AMAT, AMD, AMLN, AMR, AMSC, AMTD, AMZN, AN, ANAD, ANF, ANR, ANSW, APA, APOG, ARLP, ARO, ASBC, ATHR, ATI, AUO, AUY,
CrossProfit_'s
Comments Stats
567 comments
Rating: 19 (21 - 2 )