Central Illinois Public Service Company
| Company type | Public |
|---|---|
| Industry | Electric utility |
| Founded | 1902 |
| Fate | Merged with Union Electric Company in 1997 to form Ameren Corporation |
| Headquarters | Springfield , United States |
Area served | Central Illinois |
| Parent | CIPSCO Inc. (holding company) |
The Central Illinois Public Service Company originated as an electric streetcar holding entity and power utility founded in 1902. Eventually operating under the quarter-billion-dollar holding company CIPSCO Inc. (previously ), it merged in 1997 with the larger adjacent Union Electric Company of Missouri (formerly ), leading to the creation of Ameren Corporation (), headquartered in St. Louis, Missouri. Presently a subsidiary, Ameren Illinois maintains its headquarters in Springfield, Illinois.
History
The company was initially established in 1902 as the Mattoon City Railway Streetcar company and had transformed into the Central Illinois Public Service Company by 1910.
By 1912, CIPS became part of Samuel Insull's Middle West Utilities Company, which acquired 60 utility assets and constructed the 6,000-kilowatt Kincaid Power Station in 1913.
In 1921, CIPS relocated its headquarters to Springfield and purchased the Farmers Bank Building, renaming it the Public Service Building. The firm expanded its operations through mergers such as with Middle West Power Company in 1923, which added seven power plants and two interurban rail lines.
A new 15-story skyscraper replaced CIPS’s Springfield headquarters in 1931; this building was later designated the Illinois Building. Following the reorganization of Middle West Utilities into Middle West Corporation in 1932, CIPS remained under its ownership but ceased electric railway services by 1933.
After World War II, the company expanded Hutsonville Power Station and gained independence from Middle West Corp. in 1948. That year, CIPS began trading on the New York Stock Exchange under the ticker CIP and initiated dividend payments. Concurrently, it divested its ice manufacturing facilities as electric refrigeration became prevalent.
Operational difficulties included damage to transmission lines caused by a severe ice storm in 1949. In 1952, CIPS collaborated with Union Electric Company and Illinois Power Company to form the Midwest Power Pool system.
By the early 1990s, CIPSCO Inc. was established as a holding company for Central Illinois Public Service Company while maintaining public trading under CIP. In 1993, it managed flooding effects from the Missouri and Mississippi Rivers.
The merger with Union Electric Company in 1997 resulted in Ameren Corporation's formation. At that time, CIPSCO held approximately US$210 million in assets but carried nearly half of nearly US$1 billion in long-term debt accrued since the 1980s.
Following the merger, CIPSCO operated as AmerenCIPS until 2010 when Ameren unified its Illinois subsidiaries—AmerenCIPS, Illinois Power (AmerenIP), and Central Illinois Light Company (AmerenCILCO)—to create Ameren Illinois.
Criticisms
After Illinois ended its energy price freeze in 2007, AmerenCIPS along with its subsidiaries AmerenIP and AmerenCILCO faced criticism for insufficient readiness for subsequent electricity cost increases. While Ameren forecasted a rise in electric bills ranging from 22% to 55%, some customers reportedly encountered hikes reaching up to 300%.