Ameren's upgrade

AmerenUE proposes spending $1 billion over the next three years to protect its Missouri customers from the extended debilitating outages such as those caused by storms in St. Louis and eastern Missouri in recent years. The program calls for burying major feeder lines and cutting back trees that could down branch lines in a storm. Part of the investment -- $84 million -- would pay for inspection and repair.

Half the total amount AmerenUE proposes spending would go toward upgrading environmental controls at some of the company's power plants to meet federal standards that will go into effect in 2015.

In Cape Girardeau, AmerenUE would bury about 6 miles of feeder lines, each of which serves 1,500 to 3,000 customers.

The Missouri Public Service Commission recently gave the utility only a small part of the rate increase it was seeking due in part to questions about the reliability of AmerenUE's service. The company's credibility also has been damaged by the Taum Sauk Reservoir collapse and subsequent revelations about its handling of the facility.

This program shows that AmerenUE is getting the message that utility customers expect their service to be restored within a reasonable amount of time -- particularly after a severe storm. Of course, the upgrade, to be financed as debt initially, eventually will be part of the next rate case AmerenUE brings to the PSC.