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ILLINOIS POLLUTION CONTROL BOARD
Testimony by
Michael S. Kearney
Manager, Economic Development
Ameren Corporation
August 15, 2000
IN THE MATTER OF:
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NATURAL GAS-FIRED, PEAK LOAD
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R01-10
ELECTRICAL POWER GENERATING
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FACILITIES (PEAKER PLANTS)
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I, Michael S. Kearney, am a resident of Missouri but spend at least 70 percent of my time
in Illinois. I am a native of Westchester, Ill., near Chicago. I hold a bachelor’s degree in
economics and a master’s degree in urban and regional planning and have worked in the
utility industry since 1986. For six years, I was an urban planner with city government
urban planning departments in Ohio and Minnesota. In 1986, I joined Central Illinois
Public Service Company as an economic development representative in eastern Illinois. I
worked with local regional development organizations to promote business growth; in
1998, Central Illinois Public Service Company merged with Union Electric Company to
become Ameren Corporation. Both predecessor companies were founded in 1902, and
Ameren has a strong reputation as a financially strong, conservatively managed, low-cost
provider of energy services to 1.8 million customers in Missouri and Illinois, where the
two utility companies – AmerenUE and AmerenCIPS – have been extensively involved
in local community activities and programs.
Today, I work in Illinois on behalf of communities to promote economic development
throughout the state. My experience with natural gas peak-load electric power generation
began when I served as a technical resource to city government officials who were being
approached about siting generation in their towns. These towns included Neoga, Beecher
City and other communities in southern Illinois. In all these locations, officials and
citizens have approve the necessary agreements to make these projects feasible, and the
feedback I have received from officials and citizens is that these communities have
realized significant benefits from this development. The few difficulties that have been
encountered have been overcome.
About 18 months ago, I became involved in working with local officials in siting
Ameren facilities in central Illinois. I supported Ameren’s engineering staff in
identifying industrial sites that could be appropriate for developing peaking generation.
Once options on real estate were secured, I served as a liaison with development officials
from those communities and worked with other key Ameren officials to respond to
development issues related to these sites. Those issues included determining appropriate
use of public infrastructure and tax benefits, in addition to securing of resources. All this
led to negotiating a development agreement that would be beneficial for all parties.
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The communities where we have sited this generation ---Patoka, Pinckneyville, and
Gibson City—have recognized the important role that generation infrastructure can play
on the future development of Illinois. These communities became receptive to this
investment when they realized that we, at Ameren, are committed to managing public and
environmental resources prudently and with a sensitivity to our neighboring businesses
and residents. Officials in these communities have strongly endorsed the projects
because of the benefits these developments have brought to their citizens both through
additional tax revenues and the contributions Ameren has made to these communities.
Gibson City and other officials have gone on record to commend Ameren’s approach to
developing these projects, and because of their cooperation, over the past several months
Ameren has added more than 400 megawatts to available generating capacity. An
additional 560 megawatts are slated to come on line in first and second quarters of 2001.
(NOTE: We have also added in the year 2000 another 232 megawatts at the 60%-
Ameren-owned Joppa, Ill., plant.) This generation helps improve reliability for all
midwesterners—especially the residents and businesses of Illinois.
I appreciate the opportunity to testify at this hearing.