Ameren Missouri will spend $61 million on projects to mitigate Clean Air Act violations, including 14 years of unpermitted excess sulfur dioxide emissions, under an order issued on Tuesday by the U.S. District Court for the Eastern District of Missouri.
The order resolves litigation that started with a Department of Justice lawsuit in 2011, which alleged that Ameren Missouri operated its 1,178-MW, coal-fired Rush Island power plant near Festus, Missouri, without required air emission controls, the Environmental Protection Agency said.
Under the order, Ameren Missouri will spend $25 million on vouchers for about 125,000 mainly low-income households in Eastern Missouri to buy high efficiency particulate air filters designed to improve indoor air quality, the EPA said.
The utility will also spend $36 million to help St. Louis school districts switch to zero-emission, all-electric school buses, the EPA said. If Ameren Missouri fails to meet benchmarks on the projects, the utility will implement a third project funding weatherization and energy efficiency upgrades in the St. Louis area, the agency said.
In advance of the Rush Island order, Ameren, the parent company, and Ameren Missouri recorded liabilities of $40 million and $24 million, respectively, on their consolidated balance sheets and recorded charges of $15 million and $44 million, respectively, Ameren said in a quarterly report filed with the U.S. Securities and Exchange Commission on Nov 7.
Instead of installing required pollution control equipment at the Rush Island power plant, Ameren Missouri retired it early on Oct. 15.
The Missouri Public Service Commission in June said Ameren Missouri could issue securitized bonds to finance about $470 million of costs related to Rush Island’s early retirement, according to the SEC filing. The utility will collect from ratepayers revenue needed to repay the bonds over about 15 years after the bonds are issued.
The commission said Ameren Missouri’s decision to retire the Rush Island plant was reasonable and prudent, according to the filing. The Missouri PSC, however, did not make a determination on the utility’s actions related to the New Source Review and Clean Air Act litigation and the issue could be addressed in future regulatory proceedings, according to Ameren.
