Ameren 20-year plan includes more renewable energy sources

For Ameren Missouri, the future of the company and its energy base is all about diversity and time.

The energy company that serves 64 counties across the state submitted its 20-year Integrated Resource Plan to the Missouri Public Service Commission in October. The plan calls for the significant expansion of renewable energy, adding 400 megawatts of wind power, 45 megawatts of solar, 28 megawatts of hydroelectric and five megawatts of landfill gas -- all which would power about 319,000 homes.

Use of coal and nuclear power are included in Ameren Missouri's plan.

Vice president of external affairs and communication Warren Wood describes the measures as "a plan for responsibly transitioning our fleet to a more diverse mix of energy resources." Ameren Missouri has taken some steps toward that transition, with its first utility-scale solar energy center opening in O'Fallon, Missouri, on Dec. 4. It covers an area of about 19 football fields.

The Integrated Resource Plan calls for constructing a second solar energy center in 2016. Wood said it will be about twice the size of the O'Fallon center. It would be the largest solar energy center in the state.

Another priority is reducing greenhouse gas emissions. Wood said the company started working on this reduction at the request of customers, but the federal Environmental Protection Agency also released its Clean Power Plan this year that requires a 30 percent reduction in emissions by 2030. The goal behind the agency's plan is to "maintain an affordable, reliable energy system, while cutting pollution and protecting our health and environment now and for future generations," according to its website.

The EPA's plan differs from Ameren Missouri's 20-year plan, but the differences in many cases are slight. The two ultimately achieve the same goals as far as greenhouse gas emissions are concerned, with the differences noticeable in the timelines.

Wood said the timelines set by the EPA are aggressive and would be costly to the energy company and its customers.

Meetings were held with the EPA, federal and state officials and stakeholders across the state to discuss possible changes to the plan. Ameren specifically calls for three key changes.

The first would eliminate interim requirements prescribed by the EPA to make the majority of the greenhouse gas emission reductions by 2020. Ameren favors eliminating interim requirements, allowing for more flexibility to meet targets.

Wood said the idea was to "put in more of a glide path, rather than a cliff."

The second key change is to provide adequate credit when energy companies retire and do not replace coal-fired plants.

As part of its Integrated Resource Plan, Ameren Missouri is retiring about one-third, or 1,800 megawatts, of its coal-fired generating capacity.

Two units at the Meramec Energy Center in south St. Louis County would be converted to natural gas in 2016. Other units would be retired in phases by 2033.

Ameren outlined its request in a Nov. 28 letter to the EPA:

"Under the proposed rule, coal plant retirements are provided little credit for the emission reductions achieved via the retirement due to the rate-based methodology design. When a plant is retired, its emissions [pounds of carbon dioxide] are removed from the numerator of the formula, and its generation [megawatt hours] is also removed from the denominator. The result is effectively no change in rate despite the obvious reduction in [carbon dioxide] emissions. Ameren proposes that when a coal plant is retired and is not replaced by fossil generation, the associated [megawatt hours] should remain in the denominator, similar to the treatment of zero-emitting resources, thus properly reflecting the benefits of the retirement."

The final change is to extend the compliance date to meet the 30 percent emission reduction from 2030 to 2035. Ameren said making these adjustments would result in less cost to the company, meaning less cost would be shifted to customers.

"If we can get those three key changes made, we can get where the EPA wants to go, but for a price tag $4 billion less for our customers," Wood said.

The EPA accepted comments from stakeholders, with the final remarks turned in Dec. 1. It has until June 1 to respond to comments and issue its final carbon dioxide standards.

The agency's Clean Power Plan is available at www2.epa.gov/carbon-pollution-standards/clean-power-plan-proposed-rule.

Ameren's Integrated Resource Plan may be viewed at ameren.com/missouri/environment/renewables/ameren-missouri-irp.

srinehart@semissourian.com

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