Ameren to cut 75 jobs at merchant generation business
Ameren Corp. will cut 75 jobs at its merchant generation business, which produces electricity for the commercial and wholesale power markets.
The jobs, both management and union-represented, are at several power plants and support service facilities in Illinois and Missouri. Affected employees will be notified in mid-May. No further details were given.
"While it is always difficult to reduce staffing, we believe these reductions are critical to meet the realities of today’s depressed power markets. Prices for the power we sell today are far below the levels of earlier years," said Chuck Naslund, president and chief executive of Ameren Energy Resources Co., which operates St. Louis-based Ameren’s merchant generation business.
These staffing reductions, coupled with other planned spending cuts, will reduce net expenses by about $20 million in 2010, Ameren said Monday in a news release. Ameren Energy Resources will also evaluate temporarily ceasing operations at its least-efficient plants and taking actions to reduce its benefits costs.
Monday’s announcement follows the elimination of about 135 Ameren Energy Resources positions in 2009.
The company said the layoffs are unrelated to the Illinois Commerce Commission’s decision to slash Ameren’s request to raise electricity and natural gas rates.
Last week, Illinois regulators permitted Ameren to collect only an additional $5 million a year in electricity delivery charges after it initially sought a $162 million increase to help meet rising costs and pay for infrastructure improvements. The ICC also ordered a reduction in the gas delivery charges for all Ameren customers in that state.