Ameren signs deal for power supply

Tuesday, November 19, 2002

Calling it a "very, very important agreement" for the city of Jackson, Mayor Paul Sander stressed to the Jackson Board of Aldermen during their meeting Monday night his support for the city to enter into a three-year contract with Ameren Energy Marketing Company to fulfill the city's electric power supply needs.

The board members unanimously approved the agreement, which begins June 1, 2003, and will expire at the end of 2006.

Jackson is one of the few cities in the region which produces its own power. However, the city does purchase some energy from AEM during peak summer hours.

The city's existing power supply agreements expire in May of 2003. Officials began looking for a new supplier last year. With this agreement, Jackson will have guaranteed pricing for its retail customers through 2006.

However, city administrator Jim Roach would not divulge what rate the city agreed to pay when it purchases energy from AEM or what rate it will charge if it sells energy to the company.

"Ameren has asked us to keep that confidential," Roach said after Monday night's meeting.

Roach would say the rates are based on megawatt usage per hour and that the selling rate would be several times higher than the buying rate.

However, the amount sold by the city to AEM will be relatively minor when compared to what will be purchased from the company, he said.

The new agreement includes credits for the city's owned generation, which could be used by AEM to supply a portion of the city's needs or for sale to others.

Ameren will also serve as the city's transmission agent and obtain the necessary transmission to support delivery of the power for Jackson.

Easement acceptedIn other business, the board accepted the dedication of sanitary sewer easement deeds from Bruce and Lisa Brown and Harold and Mary Robinson.

The board set a public hearing for 7:30 p.m. Dec. 16 to consider the city's proposed 2003 budget.

Board members approved a payment of $111,740.77 to Lappe Cement Finishing Inc. of Perryville, Mo., for the Dogwood Avenue improvement project.

In addition, the board authorized a transportation enhancement funds program agreement with the Missouri Highways and Transportation Commission to build a hiking and biking trial along West Independence, linking the Orchard Elementary and Jackson Middle School campuses with a city park.

335-6611, extension 160

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