The Federal Power Act mandates that the Federal Energy Regulatory Commission (FERC) include shoreline management in any license for a hydroelectric power plant. Ameren Missouri's FERC license to operate Bagnell Dam and the Osage Renewable Energy Center requires the company to manage the shoreline by balancing recreational, environmental and operational aspects of the project.

As part of its standard licensing conditions for hydroelectric projects, FERC requires that properties located in areas designated as being within the Project Boundary comply with various shoreline and use requirements. The Project Boundary at the Lake of the Ozarks is an elevation-based, Ameren Missouri-controlled strip of land surrounding the Lake's shoreline. Prior to 1983, the U.S. Army Corps of Engineers was responsible for, and implemented, various permitting requirements for structures - such as boat docks - located within that boundary. Since that time, Ameren Missouri has been responsible for permitting.</br></br> Projects regulated by FERC that have been issued a new license or a license renewal are generally required to have a comprehensive Shoreline Management Plan where it appears that the project's shoreline may be subject to competing developmental pressures such that public access or environmental resources are at risk. Ameren Missouri was required to file a formal Shoreline Management Plan for the Lake of the Ozarks under provisions of a new 40-year license for the Osage Hydroelectric Project approved by FERC in March 2007.

Union Electric Company (now Ameren Missouri) established the Project Boundary when it built Bagnell Dam and the first license was issued by the federal government in the early 1930s. Like all hydroelectric projects, establishment of this boundary was necessary to ensure that lands required for project purposes were preserved. Those purposes include power production, recreation, environmental protection, flood control, shoreline control, irrigation, and water supply.

Ameren Missouri owns or has an easement on all of the property within the Project Boundary. In most cases, Ameren Missouri's ownership includes the Lake and a portion of the shoreline extending to a specified elevation. Many of the adjoining property owners have the benefit of a reserved easement to access the Lake over Ameren Missouri's property. However, boat docks and other structures built within the Project Boundary require a permit from Ameren Missouri.

Under federal law, as the FERC licensee for Bagnell Dam and the electric generating facility at the dam, Ameren Missouri is responsible for shoreline management. Local governments retain considerable authority to enact and enforce requirements relating to land use, such as zoning and building codes, but such entities do not have jurisdiction over a hydroelectric project authorized and licensed by the federal government.

No. Ameren Missouri collects fees only to defray the cost of managing the shoreline. In fact, our FERC license does not allow us to collect any fees that exceed our costs of managing the shoreline. Any costs that are not recovered through fees must come from the utility rates approved by the Missouri Public Service Commission.

Most of the fees are one-time fees, with the exception of annual fees for large docks that exceed 3,000 square feet in size. The fees are charged so the owners of Lake facilities pay for the cost of issuing permits and monitoring compliance with permit requirements. We believe that is the fairest way to charge for these services, rather than having Ameren Missouri's utility customers across the state pay for these services through their electric rates.