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Federal regulators have approved Ameren Missouri's plans to reduce its boundary along the Lake of the Ozarks, which will include more than 1,500 homes and other structures previously targeted for demolition.

The Federal Energy Regulatory Commission has approved Ameren's proposal to remove unneeded land around the lake.

The issue exploded last summer when FERC announced that hundreds of homes and businesses at the lake would have to be torn down because they encroach on Ameren land.

Marsha Sapp, a shoreline homeowner, said,  "It's just become such a nightmare, such a nightmare.  And it's one that we just can't wake up from.”

Elected officials were quick to get involved.

Senator Claire McCaskill, D-Mo., said,  "It's ridiculous what FERC is trying to do.  You can't say to people who have owned their homes for decades, 'Whoops, we're going to have to tear it down.'”

The political fallout was too much to bear, and Ameren immediately moved to rewrite its shoreline management plan.  This week, FERC signed off.

Jeff Wright, FERC energy projects director, said,  "In all, 28,251 acres are gonna be removed from the project boundary.”

The revised plan sets the boundary at 662 feet above sea level.  That's a foot above the flood pool for the Lake of the Ozarks and a level exceeded only once since 1977, when Truman Reservoir opened.

“Ameren will retain some flowage easements, with the right to flow water over these lands if necessary,” Wright said. “And any concern over this is between Ameren and the landowners.  It's outside the commission's jurisdiction.”

Even so, no homes or commercial structures now lie within the boundary, though some outbuildings, gazebos, or piers could be affected. 

As far as property rights are concerned, Wright said, "Inclusion of lands within the project boundary will not restrict landowner uses.  The inclusion does not create or alter property rights.  And if further compensation is due landowners for use of their land, Ameren must provide it.”

The FERC ruling has special provisions for the Duncan Point subdivison and Pebble Creek development. There are also special restrictions on Ameren involving park lands.

Wright said Ameren must submit a report within the next year assessing the impact of the revised boundary.