Storms hurt these two power utilities

Article Excerpt

AMEREN CORP. $52 (New York symbol AEE; Income Portfolio, Utilities sector; Shares outstanding: 206.7 million; Market cap: $10.7 billion; WSSF Rating: Average) provides electrical power and gas to 2.4 million customers in Missouri and Illinois. In the past year, severe storms have cut service to many of Ameren’s customers. Consumer groups are now pressuring regulators to force Ameren to compensate customers who lose their power for 48 consecutive hours. That could cost Ameren millions of dollars. In 2006, Ameren’s profit fell 11.9% to $2.66 a share (total $547 million) from $3.02 a share ($606 million) a year earlier. If you disregard storm costs and other unusual items, the company would have earned $2.92 a share in 2006, which implies a 3.3% drop. Revenue crept up to $6.9 billion from$6.8 billion. Illinois accounts for 60% of Ameren’s electricity revenue, and the company received regulatory approval to hike rates by between 40% and 55% in 2007 after several years of no increases. But the state…