Fortnightly
Ameren Merger Hearing To Proceed Without New FERC Policy
January 01, 1997
By Lori A. Burkhart
With the proposed merger of Union Electric Co. and Central Illinois Public Service Co. to form "Ameren" having been set for hearing by an October order (Docket Nos. EC96-7-000 et al.), an administrative law judge at the Federal Energy Regulatory Commission (FERC) is now expected to issue a decision on the merits by April 30, 1997.
Another question, however, is whether the FERC will announce a new comprehensive merger policy between now and then.
In its October order, the FERC found three issues that required investigation; 1) costs and rates \(em
including the effect of the shared merger savings plan and the recovery mechanism for merger costs; 2) impairment of effective regulation; and 3) the effect on competition \(em especially how transmission constraints will affect relevant markets.
The FERC noted in October that it expected to complete its merger review "in the next several months." As a result, the Ameren proceeding will not reflect the new merger policy, according the FERC, but the commission said it would establish hearing procedures "to allow the parties to make progress toward resolving issues presented by this merger application pending the outcome of the merger [review]."
Commissioner James Hoecker said that the order called for an examination of the merger's effect on competition, which is what he believes the new merger policy should focus on. Hoecker added that he wanted "to register a certain amount of displeasure with this proceeding," because eight months after receiving the merger application, the companies still had not supplied certain needed information.
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