Power On—FAQs
		What is Project Power On?
		What are the components of Project Power On?
		Will my electricity rates increase to fund Project Power On?
		Is the Power On initiative in response to the major storm-related outages in recent years?
		What is the connection between environmental controls and reliability?
		Will tree-trimmers be working on private property?
		What else is being done to limit the extent of outages along local power lines?
		How soon can we expect to see the benefits of improved service reliability?
		What percentage of your lines is underground today?
		Why isn't the undergrounding of power lines already more widespread?
		Why aren’t all overhead lines being placed underground since power outages due to trees are reduced?
		Are there other electric utilities in the United States undergrounding overhead lines like AmerenUE?
		How are you choosing which power lines to convert to underground?
		Where are you working first?
		Who is doing the actual undergrounding work?
		How many new jobs will be created through this effort? Are these union or nonunion jobs?
		Whom do customers contact to report concerns regarding trees, poles, or anything else?
1.	Q.	What is Project Power On?
	A.	Project Power On is a $1 billion, three-year investment initiative by AmerenUE to improve service reliability and environmental stewardship for our electric customers in Missouri. These efforts are on top of the $500 million a year AmerenUE spends on ongoing efforts to upgrade and maintain our system. Combined, this the largest current investment in the state of Missouri.
2.	Q.	What are the components of Project Power On?
	A.	There are four major elements to this three-year plan:
		1.	$300 Million Underground Conversion and Reliability Improvement Program. This includes substantial underground cabling in those areas where the conversion of existing overhead or underground equipment is feasible, improves electric service reliability and makes economic sense. Investments in underground conversions are being planned for most of the UE electric service territory.
		2.	$84 Million Comprehensive Circuit Inspection and Repair Program. This initiates an ongoing “foot patrol” program to help AmerenUE identify and repair or replace poles and other equipment before potential failures occur. It includes the implementation of new technology that enables us to evaluate the integrity of our distribution lines. Tree-trimmers will continue to provide visual inspections as they have been doing for many years. This program also marks our early adoption of the 2007 National Electrical Safety Code, which will result in a more robust and reliable overhead distribution system for AmerenUE customers.
		3.	$135 Million Expanded Tree-Trimming Program. This substantially increases tree-trimming funding, with special focus being placed on lines that were built to accommodate residential housing growth over the past four decades, when trees were planted that now jeopardize the system during severe weather.
		4.	$500 Million Investment to Reduce Power Plant Emissions. This addresses Missouri’s growing energy needs, while meeting or exceeding federal environmental standards. The Sioux Plant in Missouri is installing “scrubbers” to remove approximately 95% of the sulfur dioxide and nitrogen oxide content from emissions when burning either low-sulfur or high-sulfur coal. The new scrubbers will also reduce mercury emissions. Overall, Ameren will spend $3.5 billion to $4.5 billion between 2006 and 2016 to retrofit other Missouri power plants with pollution control equipment, all well ahead of federal mandates.
3.	Q.	Will my electricity rates increase to fund Project Power On?
	A.	Because of the magnitude of this investment, we initially used debt as a primary financing method. However, future rates should appropriately reflect the cost of our infrastructure improvements, as well as our operating costs. This will allow us to invest further in our infrastructure to ensure the safe and reliable supply and delivery of energy.
4.	Q.	Is the Power On initiative in response to the major storm-related outages in recent years?
	A.	Unusually severe weather has increased the frequency and duration of power outages over the past few years, and we have heard our customers and understand their concerns. Because of increased weather severity, combined with increasing consumer dependence on power in general, AmerenUE has sought ways to effectively “harden” the region’s electrical network. As part of Project Power On, we have worked with industry experts, community leaders, and customers to identify the areas of greatest need and develop courses of action that have the greatest potential impact. On the environmental front, we seek to generate power in as clean and as responsible a manner as possible, well in advance of federal mandates. Our goal is to ensure the production and delivery of safe, clean, reliable power to meet the current and future energy needs of our region.
5.	Q.	What is the connection between environmental controls and reliability?
	A.	AmerenUE is committed to providing energy in an environmentally responsible way. Investing wisely in environmental controls allows us to meet federal standards so we can continue to generate our own low-cost power to meet our customers’ needs. Having power generated closer to customers provides greater reliability and lower costs. And, as part of our corporate responsibility, we must meet federal emissions mandates. We have chosen to act in advance of federally mandated timelines, protecting both the environment and electrical supply for our customers.
6.	Q.	Will tree-trimmers be working on private property?
	A.	The trimming of trees and branches hanging over power lines is allowed on private property only in those rights-of-way where AmerenUE has easement rights. Homeowners are responsible for keeping lines clear that cross into their properties, like the lines connecting directly to their homes or places of business. AmerenUE will continue to discuss concerns regarding tree-trimming plans with homeowners and municipal authorities. With the recent outages caused by severe weather events, we have found that property owners are more understanding when these issues are raised.
7.	Q.	What else is being done to limit the extent of outages along local power lines?
	A.	In addition to the new undergrounding conversion program, our expanded tree-trimming efforts, and the new comprehensive circuit inspection and repair program associated with Project Power On, we are continuing our long-standing practice of installing “tap fuses.” These devices help minimize the number of customer outages down the line in the case of fallen tree limbs or other weather-related damage. Similar to the fuses or circuit breakers in the home, when a tap fuse operates or “trips,” it interrupts power only to the specifically affected lines and allows power to continue to flow elsewhere. AmerenUE has been installing these tap fuses for about 10 years. We are also expanding our use of “automated switches.” These are devices that can automatically detect when damage has occurred on a section of line and switch around the damage location, thus restoring power to as many customers as possible even before the problem is fully diagnosed.
8.	Q.	How soon can we expect to see the benefits of improved service reliability?
	A.	Between all the reliability initiatives associated with Project Power On and the expanded use of tap fuses and automated switching technology, AmerenUE has projects in work all over Missouri right now that will result in fewer outages and benefit thousands of customers immediately. The three-year, $300 million undergrounding commitment through Project Power On will improve reliability for thousands more customers. Unfortunately, no one can predict the nature or the location of damage that will be caused by any future severe weather system. Our project prioritization process is designed to help us make the greatest possible impact for the most customers.
9.	Q.	What percentage of your lines is underground today?
	A.	Only about 20 percent. However, today in Missouri, 70 percent of the new electric line miles added to the system each year are underground – the remaining 30 percent are overhead.
10.	Q.	Why isn’t the undergrounding of power lines already more widespread?
	A.	Placing overhead power lines underground along already developed streets and rights-of-way is extremely expensive and can present some major construction and maintenance challenges. Many new housing and commercial developments are putting power lines underground today. We also work with property owners who choose to bury their own lines. With Project Power On, we are using our undergrounding efforts to address areas that are particularly vulnerable to failures due to downing of overhead lines and where it makes economic sense.    Individual projects have to be evaluated on a long-term basis, which includes the consideration of both the benefits and the cost. We have been in discussions with government officials on the possibility of their adopting local undergrounding ordinances that would require buried lines for all new, upgraded and/or relocated electric services. Many townships and municipalities in Missouri have ordinances like this in place already.
11.	Q.	Why aren’t all overhead lines being placed underground since power outages due to trees are reduced?
	A.	AmerenUE has nearly 27,000 miles of overhead lines in the state of Missouri. A very small percentage of this total length is actually exposed to the type of tree growth responsible for power outages. Our undergrounding efforts associated with Power On will involve the close examination of overhead lines that are particularly susceptible to outages by trees and a determination of whether a practical and economical undergrounding solution exists for those lines.
12.	Q.	Are there other electric utilities in the United States undergrounding overhead lines like AmerenUE?
	A.	Like AmerenUE, virtually all regulated electric utilities have provisions in their tariffs for doing underground conversions at a cost to a customer or developer who requests it. They also perform conversions along roadways that are being improved when such improvements affect the right-of-way in which the overhead lines exist—these may or may not involve charges to the local governmental authority. There are also documented cases of municipal utilities around the country having done undergrounding conversions to improve reliability at no charge to customers, but most of these were limited to individual residential subdivisions. Some investor-owned utilities have also begun undergrounding programs that involve varying degrees of cost-sharing with affected customers. All told, we know of no other utility that has initiated an undergrounding program to anywhere near the scale that we have with Project Power On.
13.	Q.	How are you choosing which power lines to convert to underground?
	A.	Each of the eight AmerenUE construction divisions in Missouri are developing and prioritizing undergrounding proposals based on objective criteria intended to maximize the benefit to the greatest number of customers. Considering our three-year goal to underground 150 to 200 miles of overhead lines in a Missouri system that has a total of 27,000 miles, a heavily “targeted” approach to project selection is required. And while there are many criteria that will ultimately go into making such decisions, the ones that are weighted the most are as follows:
				The reliability performance of the lines in recent years (including during storms) and their potential for improvement
				The numbers of customers positively impacted
				The ease of design and construction
14.	Q.	Who is doing the actual undergrounding work?
	A.	The work is being performed all over the state of Missouri by AmerenUE-approved design and construction contractors. AmerenUE personnel are monitoring all facets of the work at every step of each undergrounding project to ensure it is being performed safely, efficiently and in conformance to strict specifications.
15.	Q.	How many new jobs will be created through this effort? Are these union or nonunion jobs?
	A.	Between the engineers, designers, technicians, safety and real estate representatives, project managers, construction, tree trimmers and foot patrol personnel required, Project Power On could generate as many as 470 union and nonunion jobs at AmerenUE. We expect the program to support an additional 2,400 outside construction jobs each year. In total, these jobs represent some $200 million in annual wages for our region.
16.	Q.	Whom do customers contact to report concerns regarding trees, poles, or anything else?
	A.	Customers with specific questions regarding Project Power On are encouraged to call AmerenUE’s Power On Customer Contact Center at 877.365.POWR (877.365.7697). For any other general concerns, please contact us at 800.552.7583. You may also contact us via email at eNews@ameren.com or by using our Contact Us form.