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).
Coal Cost Reduction Saves Big for Utilities [View article]
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).