AMERENUE REPRESENTATIVE TALKS ABOUT DEREGULATION

Energy deregulation is coming to Missouri.

It may not be this year, or next, but the electric utility industry is going to be deregulated.

That's what an AmerenUE representative told a group of manufacturing representatives meeting Thursday on the Southeast Missouri State University campus.

AmerenUE business development executive Glen W. "Skip" Smallwood said it is likely the electric utility serving the community today will continue to deliver that energy for the community in the future. It will maintain the lines and repair outages.

Customers, however, in the future may choose to purchase the "actual energy" from suppliers other than their present utility.

No one is sure when the deregulation, or restructuring, is going to unfold here, Smallwood said, "but it's being discussed by the Missouri Legislature now."

Smallwood met with manufacturing representatives at the Manufacturing Technology Resource Center, in the Serene Building.

He discussed deregulation and how to prepare for it.

"Ameren's feeling is that if we're going to do it, let's start now," Smallwood said.

Smallwood, and AmerenUE, is familiar with deregulation.

"Illinois is doing it OK," he said, "and Ameren operates in Illinois."

There's a lot of talk about deregulation these days, especially in view of the happenings in California, where much of the western half of the country is paying a high price for energy.

Good deregulation

Everything went wrong there, Smallwood said, then told of states where deregulation attempts have paid off.

"More than 20 states have deregulation," said Smallwood. "Pennsylvania and Illinois, which started Oct. 1, 1999, went slowly, with their reorganization efforts. Their examples proves it can work."

Smallwood said there were many unanswered questions about deregulation, then suggested ways to prepare for deregulation.

He suggested users do their homework look at their needs, energy policy and efficiency.

All customers must benefit from the changes in a deregulated industry.

Consumers don't have to change. They can stay with their supplier unless they actively choose to switch to another supplier, he said.

Smallwood didn't offer any particular numbers in savings, but said the Illinois rate decrease ranged from 5 to 15 percent. The Illinois rates, however, were higher than AmerenCIPS and AmerenUE rates to start with.

"When dereg comes, it will be like starting all over," said Smallwood. "Power brokers will be out there contacting everyone, starting with the big users first."