UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| | | | | |
| ☒ | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended March 31, 20222023 |
OR
| | | | | |
| ☐ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
for the transition period from to |
| | | | | | | | |
Commission
File Number | Exact name of registrant as specified in its charter;
State of Incorporation;
Address and Telephone Number | IRS Employer
Identification No. |
| 1-14756 | Ameren Corporation | 43-1723446 |
(Missouri Corporation)
1901 Chouteau Avenue
St. Louis, Missouri 63103
(314) 621-3222
| | | | | | | | |
| 1-2967 | Union Electric Company | 43-0559760 |
(Missouri Corporation)
1901 Chouteau Avenue
St. Louis, Missouri 63103
(314) 621-3222
| | | | | | | | |
| 1-3672 | Ameren Illinois Company | 37-0211380 |
(Illinois Corporation)
10 Executive DriveRichard Mark Way
Collinsville, Illinois 62234
(618) 343-8150
Securities Registered Pursuant to Section 12(b) of the Act:
| | | | | | | | |
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, $0.01 par value per share | AEE | New York Stock Exchange |
Indicate by check mark whether the registrants: (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ameren Corporation | | Yes | | ☒ | | No | | ☐ |
| Union Electric Company | | Yes | | ☒ | | No | | ☐ |
| Ameren Illinois Company | | Yes | | ☒ | | No | | ☐ |
Indicate by check mark whether each registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ameren Corporation | | Yes | | ☒ | | No | | ☐ |
| Union Electric Company | | Yes | | ☒ | | No | | ☐ |
| Ameren Illinois Company | | Yes | | ☒ | | No | | ☐ |
Indicate by check mark whether each registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| | | | | | | | | | | | | | | | | | | | |
| Ameren Corporation | Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ |
| | | Smaller reporting company | ☐ | Emerging growth company | ☐ |
| Union Electric Company | Large accelerated filer | ☐ | Accelerated filer | ☐ | Non-accelerated filer | ☒ |
| | | Smaller reporting company | ☐ | Emerging growth company | ☐ |
| Ameren Illinois Company | Large accelerated filer | ☐ | Accelerated filer | ☐ | Non-accelerated filer | ☒ |
| | | Smaller reporting company | ☐ | Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
| | | | | |
| Ameren Corporation | ☐ |
| Union Electric Company | ☐ |
| Ameren Illinois Company | ☐ |
Indicate by check mark whether each registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ameren Corporation | | Yes | | ☐ | | No | | ☒ |
| Union Electric Company | | Yes | | ☐ | | No | | ☒ |
| Ameren Illinois Company | | Yes | | ☐ | | No | | ☒ |
The number of shares outstanding of each registrant’s classes of common stock as of April 29, 2022,28, 2023, was as follows:
| | | | | | | | | | | |
| Registrant | | Title of each class of common stock | Shares outstanding |
| Ameren Corporation | | Common stock, $0.01 par value per share | 258,226,506262,609,472 | |
| Union Electric Company | | Common stock, $5 par value per share, held by Ameren Corporation | 102,123,834 | |
| Ameren Illinois Company | | Common stock, no par value, held by Ameren Corporation | 25,452,373 | |
| | | |
This combined Form 10-Q is separately filed by Ameren Corporation, Union Electric Company, and Ameren Illinois Company. Each registrant hereto is filing on its own behalf all of the information contained in this quarterly report that relates to such registrant. Each registrant hereto is not filing any information that does not relate to such registrant, and therefore makes no representation as to any such information.
TABLE OF CONTENTS
| | | | | | | | |
| | | Page |
| |
| |
| |
| |
| |
| | |
| Item 1. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Item 2. | | |
| Item 3. | | |
| Item 4. | | |
| |
| |
| | |
| Item 1. | | |
| Item 1A. | | |
| Item 2. | | |
| Item 6. | | |
| |
| |
GLOSSARY OF TERMS AND ABBREVIATIONS
We use the words “our,” “we” or “us” with respect to certain information that relates to Ameren, Ameren Missouri, and Ameren Illinois, collectively. When appropriate, subsidiaries of Ameren Corporation are named specifically as their various business activities are discussed. Refer to the Form 10-K for a complete listing of glossary terms and abbreviations. Only new or significantly changed terms and abbreviations are included below.
CCN – Certificate of convenience and necessity.
Form 10-K – The combined Annual Report on Form 10-K for the year ended December 31, 2021,2022, filed by the Ameren Companies with the SEC.
FORWARD-LOOKING STATEMENTS
Statements in this report not based on historical facts are considered “forward-looking” and, accordingly, involve risks and uncertainties that could cause actual results to differ materially from those discussed. Although such forward-looking statements have been made in good faith and are based on reasonable assumptions, there is no assurance that the expected results will be achieved. These statements include (without limitation) statements as to future expectations, beliefs, plans, projections, strategies, targets, estimates, objectives, events, conditions, and financial performance. In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, we are providing this cautionary statement to identify important factors that could cause actual results to differ materially from those anticipated. The following factors, in addition to those discussed within Risk Factors in the Form 10-K, and in this report, and elsewhere in this report and in our other filings with the SEC, could cause actual results to differ materially from management expectations suggested in such forward-looking statements:
•regulatory, judicial, or legislative actions, and any changes in regulatory policies and ratemaking determinations, that may change regulatory recovery mechanisms, such as those that may result from the impact of a final ruling to be issued by the United States District Court for the Eastern District of Missouri regarding its September 2019 remedy order for the Rush Island Energy Center, the MoPSC staff review of the planned Rush Island Energy Center retirement, Ameren Missouri’s electric regulatory rate review filed in August 2022 with the July 2020 appeal filed byMoPSC, Ameren Missouri, Ameren Illinois, and ATXI challenging the refund period related to the FERC’s May 2020 order determining the allowed base ROEMissouri’s proposed customer energy-efficiency plan under the MISO tariff,MEEIA filed with the July 2020 appealMoPSC in March 2023, Ameren Illinois’ MYRP electric distribution service regulatory rate review filed byin January 2023 with the ICC, Ameren Missouri, Ameren Illinois, and ATXI challengingIllinois’ natural gas regulatory rate review filed in January 2023 with the FERC’s rehearing denials in the transmission formula rate revision cases, andICC, Ameren Illinois’ electric distribution service raterevenue requirement reconciliation adjustment request filed with the ICC in April 2022;2023, and the August 2022 United States Court of Appeals for the District of Columbia Circuit ruling that vacated FERC’s MISO ROE-determining orders and remanded the proceedings to the FERC;
•the length and severity of the COVID-19 pandemic, and its impacts on our business continuity plans and our results of operations, financial position, and liquidity, including but not limited to changes in customer demand resulting in changes to sales volumes; customers’ payment for our services; the health, welfare, and availability of our workforce and contractors; supplier disruptions; delays in the completion of construction projects, which could impact our expected capital expenditures and rate base growth; changes in how we operate our business and increased data security risks as a result of remote working arrangements for a significant portion of our workforce; and our ability to access the capital markets on reasonable termscontrol costs and when needed;make substantial investments in our businesses, including our ability to recover costs and investments, and to earn our allowed ROEs, within frameworks established by our regulators, while maintaining affordability of our services for our customers;
•the effect of Ameren Illinois’ use of the performance-based formula ratemaking framework for its electric distribution service under the IEIMA, which will establishestablished and allowallows for a reconciliation of electric distribution service rates through 2023, its participation in electric energy-efficiency programs, and the related impact of the direct relationship between Ameren Illinois’ ROE and the 30-year United States Treasury bond yields;
•the effect and duration of Ameren Illinois’ election to either utilize traditional regulatory rate reviews or MYRPs for electric distribution service ratemaking effective for rates beginning in 2024;
•2024, including the effect of the reconciliation cap on Ameren Missouri’s investment plan and earnings if an extension to use PISA is not sought by Ameren Missouri or approved by the MoPSC;electric distribution revenue requirement;
•the effect on Ameren Missouri of any customer rate caps or limitations on increasing the electric service revenue requirement pursuant to Ameren Missouri’s election to use the PISA,PISA;
•Ameren Missouri’s ability to construct and/or acquire wind, solar, and other renewable energy generation facilities and battery storage, as well as natural gas-fired combined cycle energy centers, retire fossil fuel-fired energy centers, and implement new or existing customer energy-efficiency programs, including an extensionany such construction, acquisition, retirement, or implementation in connection with its Smart Energy Plan, integrated resource plan, or emissions reduction goals, and to recover its cost of use beyond 2023 if requested by Ameren Missouriinvestment, a related return, and, approvedin the case of customer energy-efficiency programs, any lost margins in a timely manner, each of which is affected by the MoPSC under current Missouri law, or beyond 2028 if requestedability to obtain all necessary regulatory and approved byproject approvals, including CCNs from the MoPSC if Missouri Senate Bill 745or any other required approvals for the addition of renewable resources;
•Ameren Missouri’s ability to use or transfer federal production and investment tax credits related to renewable energy projects; the cost of wind, solar, and other renewable generation and storage technologies; and our ability to obtain timely interconnection agreements with the MISO or other RTOs at an acceptable cost for each facility;
•the success of competitive bids related to requests for proposals associated with the MISO’s long-range transmission planning;
•the inability of our counterparties to meet their obligations with respect to contracts, credit agreements, and financial instruments, including as they relate to the construction and acquisition of electric and natural gas utility infrastructure and the ability of counterparties
to complete projects, which is enacted;dependent upon the availability of necessary materials and equipment, including those obligations that are affected by supply chain disruptions;
•advancements in energy technologies, including carbon capture, utilization, and sequestration, hydrogen fuel for electric production and energy storage, next generation nuclear, and large-scale long-cycle battery energy storage, and the impact of federal and state energy and economic policies with respect to those technologies;
•the effects of changes in federal, state, or local laws and other governmental actions, including monetary, fiscal, foreign trade, and energy policies;
•the effects of changes in federal, state, or local tax laws or rates, including the effects of the IRA and the 15% minimum tax on adjusted financial statement income, as well as additional regulations, interpretations, amendments, or rates,technical corrections to or in connection with the IRA, and challenges, if any, to the tax positions taken by the Ameren Companies, if any, as well as resulting effects on customer rates;rates and the recoverability of the minimum tax imposed under the IRA;
•the effects on energy prices and demand for our services resulting from technological advances, including advances in customer energy efficiency, electric vehicles, electrification of various industries, energy storage, and private generation sources, which generate electricity at the site of consumption and are becoming more cost-competitive;
•the effectiveness of Ameren Missouri’s customer energy-efficiency programs and the related revenues and performance incentives earned under its MEEIA programs;
•Ameren Illinois’ ability to achieve the performance standards applicable to its electric distribution business and electric customer energy-efficiency goals and the resulting impact on its allowed ROE;
•our ability to control costs and make substantial investments in our businesses, including our ability to recover costs and investments, and to earn our allowed ROEs, within frameworks established by our regulators, while maintaining affordability of our services for our customers;
•the cost and availability of fuel, such as low-sulfur coal, natural gas, and enriched uranium used to produce electricity; the cost and availability of natural gas for distribution and purchased power, including capacity, zero emission credits, renewable energy credits, and emission allowances, and natural gas for distribution;allowances; and the level and volatility of future market prices for such commodities and credits;
•disruptions in the delivery of fuel, failure of our fuel suppliers to provide adequate quantities or quality of fuel, or lack of adequate inventories of fuel, including nuclear fuel assemblies from the one NRC-licensed supplier of Ameren Missouri’s Callaway Energy Center assemblies;
•the cost and availability of transmission capacity for the energy generated by Ameren Missouri’s energy centers or required to satisfy Ameren Missouri’sour energy sales;
•the effectiveness of our risk management strategies and our use of financial and derivative instruments;
•the ability to obtain sufficient insurance, or, in the absence of insurance, the ability to timely recover uninsured losses from our customers;
•the impact of cyberattacks and data security risks on us or our suppliers, which could, among other things, result in the loss of operational control of energy centers and electric and natural gas transmission and distribution systems and/or the loss of data, such as customer, employee, financial, and operating system information;
•business and economic conditions,acts of sabotage, which have been affected by, and will be affected by the lengthincreased in frequency and severity of,within the COVID-19 pandemic,utility industry, war, terrorism, or other intentionally disruptive acts;
•business, economic, and capital market conditions, including the impact of such conditions on interest rates, inflation, and inflation;investments;
•the impact of inflation or a recession on our customers and the related impact on our results of operations, financial position, and liquidity;
•disruptions of the capital and credit markets, deterioration in credit metrics of the Ameren Companies, or other events that may have an adverse effect on the cost or availability of capital, including short-term credit and liquidity;liquidity, and our ability to access the capital and credit markets on reasonable terms when needed;
•the actions of credit rating agencies and the effects of such actions, including any impacts on our credit ratings that may result from the economic conditions of the COVID-19 pandemic;
•the inability of our counterparties to meet their obligations with respect to contracts, credit agreements, and financial instruments, including as they relate to the construction and acquisition of electric and natural gas utility infrastructure and the ability of counterparties to complete projects, which is dependent upon the availability of necessary materials and equipment, including those obligations that are affected by disruptions in the global supply chain caused by the COVID-19 pandemic;actions;
•the impact of weather conditions and other natural phenomena on us and our customers, including the impact of system outages and the level of wind and solar resources;
•the construction, installation, performance, and cost recovery of generation, transmission, and distribution assets;
•the ability to maintain system reliability during the transition to clean energy generation by Ameren Missouri and the electric utility industry, including within the MISO, as well as Ameren Missouri’s ability to meet generation capacity obligations;
•the effects of failures of electric generation, electric and natural gas transmission or distribution, or natural gas storage facilities systems and equipment, which could result in unanticipated liabilities or unplanned outages;
•the operation of Ameren Missouri’s Callaway Energy Center, including planned and unplanned outages, as well as the ability to recover costs associated with such outages and the impact of such outages on off-system sales and purchased power, among other things;
•Ameren Missouri’s ability to recover the remaining investment and decommissioning costs associated with the retirement of an energy center, as well as the ability to earn a return on that remaining investment and those decommissioning costs;
•the impact of current environmental laws and new, more stringent, or changing requirements, including those related to NSR, and CO2, NOx, andother emissions and discharges, Illinois emission standards, cooling water intake structures, CCR, energy efficiency, and wildlife protection, that could limit or terminate the operation of certain of Ameren Missouri’s energy centers, increase our operating costs or investment requirements, result in an impairment of our assets, cause us to sell our assets, reduce our customers’ demand for electricity or natural gas, or otherwise have a negative financial effect;
•the impact of complying with renewable energy standards in Missouri and Illinois and with the zero emission standard in Illinois;
•the effectiveness of Ameren Missouri’s ability to construct and/or acquire wind, solar, and other renewable energy generation facilities, retire energy centers, and implement new or existing customer energy-efficiency programs including any such construction, acquisition, retirement, or implementation in connection withand the related revenues and performance incentives earned under its Smart Energy Plan, integrated resource plan, or emissions reduction goals, and to recover its cost of investment, related return, and, in the case of customer energy-efficiency programs, any lost margins in a timely manner, which is affected by the ability to obtain all necessary regulatory and project approvals, including certificates of convenience and necessity from the MoPSC or any other required approvals for the addition of renewable resources;MEEIA programs;
•the availability of federal production and investment tax credits related to renewable energy and Ameren Missouri’sIllinois’ ability to use such credits;achieve the cost of wind, solar,performance standards applicable to its electric distribution business and other renewable generation and storage technologies; and our ability to obtain timely interconnection agreements with the MISO or other RTOs at an acceptable cost for each facility;
•advancements in carbon-free generation and storage technologies,electric customer energy-efficiency goals and the resulting impact on its allowed ROE;
•labor disputes, work force reductions, changes in future wage and employee benefits costs, including those resulting from changes in discount rates, mortality tables, returns on benefit plan assets, and other assumptions;
•the impact of negative opinions of us or our utility services that our customers, investors, legislators, regulators, creditors, or other stakeholders may have or develop, which could result from a variety of factors, including failures in system reliability, failure to implement our
investment plans or to protect sensitive customer information, increases in rates, negative media coverage, or concerns about ESG practices;
•the impact of adopting new accounting guidance;
•the effects of strategic initiatives, including mergers, acquisitions, and divestitures;
•legal and administrative proceedings;
•pandemics or other health events, including the COVID-19 pandemic, and their impacts on our results of operations, financial position, and liquidity; and
•the impacts of the Russian invasion of Ukraine, related sanctions imposed by the U.S. and other governments, and any broadening of the conflict, including potential impacts on the cost and availability of fuel, natural gas, enriched uranium, orand other commodities, materials, orand services, the inability of our counterparties to perform their obligations, disruptions in the capital and credit markets, and other impacts on business, economic, and geopolitical conditions, including inflation; and
•acts of sabotage, war, terrorism, or other intentionally disruptive acts.inflation.
New factors emerge from time to time, and it is not possible for managementus to predict all of such factors, nor can itwe assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement. Given these uncertainties, undue reliance should not be placed on these forward-looking statements. Except to the extent required by the federal securities laws, we undertake no obligation to update or revise publicly any forward-looking statements to reflect new information or future events.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
AMEREN CORPORATION
CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME
(Unaudited) (In millions, except per share amounts)
| | | | | Three Months Ended March 31, | | | Three Months Ended March 31, |
| | | | 2022 | | 2021 | | | 2023 | | 2022 |
| Operating Revenues: | Operating Revenues: | | | | | Operating Revenues: | | | | |
| Electric | Electric | | $ | 1,318 | | | $ | 1,156 | | Electric | | $ | 1,590 | | | $ | 1,318 | |
| Natural gas | Natural gas | | 561 | | | 410 | | Natural gas | | 472 | | | 561 | |
| Total operating revenues | Total operating revenues | | 1,879 | | | 1,566 | | Total operating revenues | | 2,062 | | | 1,879 | |
| Operating Expenses: | Operating Expenses: | | | | | Operating Expenses: | | | | |
| Fuel | Fuel | | 176 | | | 65 | | Fuel | | 113 | | | 176 | |
| Purchased power | Purchased power | | 177 | | | 191 | | Purchased power | | 495 | | | 177 | |
| Natural gas purchased for resale | Natural gas purchased for resale | | 293 | | | 165 | | Natural gas purchased for resale | | 208 | | | 293 | |
| Other operations and maintenance | Other operations and maintenance | | 461 | | | 420 | | Other operations and maintenance | | 448 | | | 461 | |
| | Depreciation and amortization | Depreciation and amortization | | 299 | | | 281 | | Depreciation and amortization | | 320 | | | 299 | |
| Taxes other than income taxes | Taxes other than income taxes | | 142 | | | 128 | | Taxes other than income taxes | | 127 | | | 142 | |
| Total operating expenses | Total operating expenses | | 1,548 | | | 1,250 | | Total operating expenses | | 1,711 | | | 1,548 | |
| Operating Income | Operating Income | | 331 | | | 316 | | Operating Income | | 351 | | | 331 | |
| | Other Income, Net | Other Income, Net | | 60 | | | 46 | | Other Income, Net | | 78 | | | 60 | |
| Interest Charges | Interest Charges | | 104 | | | 100 | | Interest Charges | | 127 | | | 104 | |
| Income Before Income Taxes | Income Before Income Taxes | | 287 | | | 262 | | Income Before Income Taxes | | 302 | | | 287 | |
| Income Taxes | Income Taxes | | 34 | | | 27 | | Income Taxes | | 37 | | | 34 | |
| | Net Income | Net Income | | 253 | | | 235 | | Net Income | | 265 | | | 253 | |
| Less: Net Income Attributable to Noncontrolling Interests | Less: Net Income Attributable to Noncontrolling Interests | | 1 | | | 2 | | Less: Net Income Attributable to Noncontrolling Interests | | 1 | | | 1 | |
| | Net Income Attributable to Ameren Common Shareholders | Net Income Attributable to Ameren Common Shareholders | | $ | 252 | | | $ | 233 | | Net Income Attributable to Ameren Common Shareholders | | $ | 264 | | | $ | 252 | |
| | | Net Income | Net Income | | $ | 253 | | | $ | 235 | | Net Income | | $ | 265 | | | $ | 253 | |
| Other Comprehensive Income, Net of Taxes | | | |
| Other Comprehensive Income (Loss), Net of Taxes | | Other Comprehensive Income (Loss), Net of Taxes | | |
| Pension and other postretirement benefit plan activity, net of income taxes of $— and $—, respectively | Pension and other postretirement benefit plan activity, net of income taxes of $— and $—, respectively | | 1 | | | 1 | | Pension and other postretirement benefit plan activity, net of income taxes of $— and $—, respectively | | (1) | | | 1 | |
| Comprehensive Income | Comprehensive Income | | 254 | | | 236 | | Comprehensive Income | | 264 | | | 254 | |
| Less: Comprehensive Income Attributable to Noncontrolling Interests | Less: Comprehensive Income Attributable to Noncontrolling Interests | | 1 | | | 2 | | Less: Comprehensive Income Attributable to Noncontrolling Interests | | 1 | | | 1 | |
| Comprehensive Income Attributable to Ameren Common Shareholders | Comprehensive Income Attributable to Ameren Common Shareholders | | $ | 253 | | | $ | 234 | | Comprehensive Income Attributable to Ameren Common Shareholders | | $ | 263 | | | $ | 253 | |
| | | | Earnings per Common Share – Basic | Earnings per Common Share – Basic | | $ | 0.98 | | | $ | 0.92 | | Earnings per Common Share – Basic | | $ | 1.01 | | | $ | 0.98 | |
| | | Earnings per Common Share – Diluted | Earnings per Common Share – Diluted | | $ | 0.97 | | | $ | 0.91 | | Earnings per Common Share – Diluted | | $ | 1.00 | | | $ | 0.97 | |
| | Weighted-average Common Shares Outstanding – Basic | Weighted-average Common Shares Outstanding – Basic | | 257.9 | | | 254.4 | | Weighted-average Common Shares Outstanding – Basic | | 262.2 | | | 257.9 | |
| Weighted-average Common Shares Outstanding – Diluted | Weighted-average Common Shares Outstanding – Diluted | | 259.0 | | | 255.9 | | Weighted-average Common Shares Outstanding – Diluted | | 263.1 | | | 259.0 | |
The accompanying notes are an integral part of these consolidated financial statements.
AMEREN CORPORATION
CONSOLIDATED BALANCE SHEET
(Unaudited) (In millions, except per share amounts)
| | | March 31, 2022 | | December 31, 2021 | | March 31,
2023 | | December 31, 2022 |
| ASSETS | ASSETS | | | | ASSETS | | | |
| Current Assets: | Current Assets: | | Current Assets: | |
| Cash and cash equivalents | Cash and cash equivalents | $ | 7 | | | $ | 8 | | Cash and cash equivalents | $ | 10 | | | $ | 10 | |
| Accounts receivable – trade (less allowance for doubtful accounts of $28 and $29, respectively) | 560 | | | 434 | | |
| Accounts receivable – trade (less allowance for doubtful accounts of $34 and $31, respectively) | | Accounts receivable – trade (less allowance for doubtful accounts of $34 and $31, respectively) | 625 | | | 600 | |
| Unbilled revenue | Unbilled revenue | 283 | | | 301 | | Unbilled revenue | 299 | | | 446 | |
| Miscellaneous accounts receivable | Miscellaneous accounts receivable | 87 | | | 85 | | Miscellaneous accounts receivable | 62 | | | 54 | |
| Inventories | Inventories | 520 | | | 592 | | Inventories | 630 | | | 667 | |
| Mark-to-market derivative assets | 137 | | | 66 | | |
| | | Current regulatory assets | Current regulatory assets | 244 | | | 319 | | Current regulatory assets | 292 | | | 354 | |
| | Investment in industrial development revenue bonds | | Investment in industrial development revenue bonds | — | | | 240 | |
| Current collateral assets | Current collateral assets | 110 | | | 66 | | Current collateral assets | 29 | | | 142 | |
| Other current assets | Other current assets | 83 | | | 97 | | Other current assets | 115 | | | 155 | |
| | Total current assets | Total current assets | 2,031 | | | 1,968 | | Total current assets | 2,062 | | | 2,668 | |
| Property, Plant, and Equipment, Net | Property, Plant, and Equipment, Net | 29,578 | | | 29,261 | | Property, Plant, and Equipment, Net | 31,735 | | | 31,262 | |
| Investments and Other Assets: | Investments and Other Assets: | | Investments and Other Assets: | |
| Nuclear decommissioning trust fund | Nuclear decommissioning trust fund | 1,094 | | | 1,159 | | Nuclear decommissioning trust fund | 1,019 | | | 958 | |
| Goodwill | Goodwill | 411 | | | 411 | | Goodwill | 411 | | | 411 | |
| | Regulatory assets | Regulatory assets | 1,377 | | | 1,289 | | Regulatory assets | 1,599 | | | 1,426 | |
| Pension and other postretirement benefits | Pension and other postretirement benefits | 772 | | | 756 | | Pension and other postretirement benefits | 423 | | | 411 | |
| Other assets | Other assets | 934 | | | 891 | | Other assets | 815 | | | 768 | |
| | Total investments and other assets | Total investments and other assets | 4,588 | | | 4,506 | | Total investments and other assets | 4,267 | | | 3,974 | |
| TOTAL ASSETS | TOTAL ASSETS | $ | 36,197 | | | $ | 35,735 | | TOTAL ASSETS | $ | 38,064 | | | $ | 37,904 | |
| LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | | | | LIABILITIES AND EQUITY | | | |
| Current Liabilities: | Current Liabilities: | | Current Liabilities: | |
| Current maturities of long-term debt | Current maturities of long-term debt | $ | 505 | | | $ | 505 | | Current maturities of long-term debt | $ | 100 | | | $ | 340 | |
| Short-term debt | Short-term debt | 1,101 | | | 545 | | Short-term debt | 1,248 | | | 1,070 | |
| Accounts and wages payable | Accounts and wages payable | 690 | | | 1,095 | | Accounts and wages payable | 664 | | | 1,159 | |
| | Current regulatory liabilities | 219 | | | 113 | | |
| | | Other current liabilities | Other current liabilities | 630 | | | 568 | | Other current liabilities | 745 | | | 797 | |
| | Total current liabilities | Total current liabilities | 3,145 | | | 2,826 | | Total current liabilities | 2,757 | | | 3,366 | |
| Long-term Debt, Net | Long-term Debt, Net | 12,563 | | | 12,562 | | Long-term Debt, Net | 14,181 | | | 13,685 | |
| Deferred Credits and Other Liabilities: | Deferred Credits and Other Liabilities: | | Deferred Credits and Other Liabilities: | |
| Accumulated deferred income taxes and tax credits, net | Accumulated deferred income taxes and tax credits, net | 3,550 | | | 3,499 | | Accumulated deferred income taxes and tax credits, net | 3,856 | | | 3,804 | |
| | Regulatory liabilities | Regulatory liabilities | 5,841 | | | 5,848 | | Regulatory liabilities | 5,395 | | | 5,309 | |
| Asset retirement obligations | Asset retirement obligations | 769 | | | 757 | | Asset retirement obligations | 769 | | | 763 | |
| | Other deferred credits and liabilities | Other deferred credits and liabilities | 394 | | | 414 | | Other deferred credits and liabilities | 370 | | | 340 | |
| | Total deferred credits and other liabilities | Total deferred credits and other liabilities | 10,554 | | | 10,518 | | Total deferred credits and other liabilities | 10,390 | | | 10,216 | |
| Commitments and Contingencies (Notes 2, 9, and 10) | Commitments and Contingencies (Notes 2, 9, and 10) | 0 | | 0 | Commitments and Contingencies (Notes 2, 9, and 10) | | | |
| Shareholders’ Equity: | Shareholders’ Equity: | | Shareholders’ Equity: | |
| Common stock, $.01 par value, 400.0 shares authorized – shares outstanding of 258.2 and 257.7, respectively | 3 | | | 3 | | |
| Common stock, $.01 par value, 400.0 shares authorized – shares outstanding of 262.6 and 262.0, respectively | | Common stock, $.01 par value, 400.0 shares authorized – shares outstanding of 262.6 and 262.0, respectively | 3 | | | 3 | |
| Other paid-in capital, principally premium on common stock | Other paid-in capital, principally premium on common stock | 6,507 | | | 6,502 | | Other paid-in capital, principally premium on common stock | 6,861 | | | 6,860 | |
| Retained earnings | Retained earnings | 3,282 | | | 3,182 | | Retained earnings | 3,745 | | | 3,646 | |
| Accumulated other comprehensive income | 14 | | | 13 | | |
| Accumulated other comprehensive loss | | Accumulated other comprehensive loss | (2) | | | (1) | |
| | Total shareholders’ equity | Total shareholders’ equity | 9,806 | | | 9,700 | | Total shareholders’ equity | 10,607 | | | 10,508 | |
| Noncontrolling Interests | Noncontrolling Interests | 129 | | | 129 | | Noncontrolling Interests | 129 | | | 129 | |
| Total equity | Total equity | 9,935 | | | 9,829 | | Total equity | 10,736 | | | 10,637 | |
| TOTAL LIABILITIES AND EQUITY | TOTAL LIABILITIES AND EQUITY | $ | 36,197 | | | $ | 35,735 | | TOTAL LIABILITIES AND EQUITY | $ | 38,064 | | | $ | 37,904 | |
The accompanying notes are an integral part of these consolidated financial statements.
| | AMEREN CORPORATION | AMEREN CORPORATION | AMEREN CORPORATION |
| CONSOLIDATED STATEMENT OF CASH FLOWS | CONSOLIDATED STATEMENT OF CASH FLOWS | CONSOLIDATED STATEMENT OF CASH FLOWS |
| (Unaudited) (In millions) | (Unaudited) (In millions) | (Unaudited) (In millions) |
| | | Three Months Ended March 31, | | Three Months Ended March 31, |
| | | 2022 | | 2021 | | 2023 | | 2022 |
| Cash Flows From Operating Activities: | Cash Flows From Operating Activities: | | | | Cash Flows From Operating Activities: | | | |
| Net income | Net income | $ | 253 | | | $ | 235 | | Net income | $ | 265 | | | $ | 253 | |
| | Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | | Adjustments to reconcile net income to net cash provided by operating activities: | |
| | Depreciation and amortization | Depreciation and amortization | 324 | | | 295 | | Depreciation and amortization | 350 | | | 324 | |
| Amortization of nuclear fuel | Amortization of nuclear fuel | 22 | | | — | | Amortization of nuclear fuel | 19 | | | 22 | |
| Amortization of debt issuance costs and premium/discounts | Amortization of debt issuance costs and premium/discounts | 4 | | | 5 | | Amortization of debt issuance costs and premium/discounts | 3 | | | 4 | |
| Deferred income taxes and investment tax credits, net | Deferred income taxes and investment tax credits, net | 31 | | | 26 | | Deferred income taxes and investment tax credits, net | 35 | | | 31 | |
| Allowance for equity funds used during construction | Allowance for equity funds used during construction | (8) | | | (7) | | Allowance for equity funds used during construction | (9) | | | (8) | |
| Stock-based compensation costs | Stock-based compensation costs | 4 | | | 6 | | Stock-based compensation costs | 8 | | | 4 | |
| Other | Other | 11 | | | 8 | | Other | (6) | | | 11 | |
| Changes in assets and liabilities: | Changes in assets and liabilities: | | Changes in assets and liabilities: | |
| Receivables | Receivables | (117) | | | (5) | | Receivables | 112 | | | (117) | |
| Inventories | Inventories | 72 | | | 54 | | Inventories | 37 | | | 72 | |
| Accounts and wages payable | Accounts and wages payable | (235) | | | (252) | | Accounts and wages payable | (362) | | | (235) | |
| Taxes accrued | Taxes accrued | 47 | | | 60 | | Taxes accrued | 50 | | | 47 | |
| Regulatory assets and liabilities | Regulatory assets and liabilities | 75 | | | (421) | | Regulatory assets and liabilities | (40) | | | 75 | |
| Assets, other | Assets, other | (54) | | | (9) | | Assets, other | (14) | | | (10) | |
| Liabilities, other | Liabilities, other | (26) | | | (34) | | Liabilities, other | (6) | | | (39) | |
| Pension and other postretirement benefits | Pension and other postretirement benefits | (15) | | | 4 | | Pension and other postretirement benefits | (58) | | | (15) | |
| Counterparty collateral, net | | Counterparty collateral, net | 112 | | | (31) | |
| | Net cash provided by (used in) operating activities | 388 | | | (35) | | |
| Net cash provided by operating activities | | Net cash provided by operating activities | 496 | | | 388 | |
| Cash Flows From Investing Activities: | Cash Flows From Investing Activities: | | | | Cash Flows From Investing Activities: | | | |
| Capital expenditures | Capital expenditures | (774) | | | (887) | | Capital expenditures | (931) | | | (774) | |
| | Nuclear fuel expenditures | Nuclear fuel expenditures | (16) | | | (1) | | Nuclear fuel expenditures | (20) | | | (16) | |
| Purchases of securities – nuclear decommissioning trust fund | Purchases of securities – nuclear decommissioning trust fund | (97) | | | (152) | | Purchases of securities – nuclear decommissioning trust fund | (29) | | | (97) | |
| Sales and maturities of securities – nuclear decommissioning trust fund | Sales and maturities of securities – nuclear decommissioning trust fund | 92 | | | 150 | | Sales and maturities of securities – nuclear decommissioning trust fund | 17 | | | 92 | |
| | Other | Other | 15 | | | 1 | | Other | (1) | | | 15 | |
| | Net cash used in investing activities | Net cash used in investing activities | (780) | | | (889) | | Net cash used in investing activities | (964) | | | (780) | |
| Cash Flows From Financing Activities: | Cash Flows From Financing Activities: | | | | Cash Flows From Financing Activities: | | | |
| Dividends on common stock | Dividends on common stock | (152) | | | (140) | | Dividends on common stock | (165) | | | (152) | |
| Dividends paid to noncontrolling interest holders | Dividends paid to noncontrolling interest holders | (1) | | | (2) | | Dividends paid to noncontrolling interest holders | (1) | | | (1) | |
| Short-term debt, net | Short-term debt, net | 555 | | | 399 | | Short-term debt, net | 179 | | | 555 | |
| | Issuances of long-term debt | Issuances of long-term debt | — | | | 450 | | Issuances of long-term debt | 499 | | | — | |
| Issuances of common stock | Issuances of common stock | 5 | | | 125 | | Issuances of common stock | 5 | | | 5 | |
| | Redemptions of Ameren Illinois preferred stock | — | | | (13) | | |
| | Employee payroll taxes related to stock-based compensation | Employee payroll taxes related to stock-based compensation | (16) | | | (17) | | Employee payroll taxes related to stock-based compensation | (20) | | | (16) | |
| Debt issuance costs | Debt issuance costs | — | | | (3) | | Debt issuance costs | (5) | | | — | |
| Other | Other | — | | | (4) | | Other | (3) | | | — | |
| | Net cash provided by financing activities | Net cash provided by financing activities | 391 | | | 795 | | Net cash provided by financing activities | 489 | | | 391 | |
| Net change in cash, cash equivalents, and restricted cash | Net change in cash, cash equivalents, and restricted cash | (1) | | | (129) | | Net change in cash, cash equivalents, and restricted cash | 21 | | | (1) | |
| Cash, cash equivalents, and restricted cash at beginning of year | Cash, cash equivalents, and restricted cash at beginning of year | 155 | | | 301 | | Cash, cash equivalents, and restricted cash at beginning of year | 216 | | | 155 | |
| | Cash, cash equivalents, and restricted cash at end of period | Cash, cash equivalents, and restricted cash at end of period | $ | 154 | | | $ | 172 | | Cash, cash equivalents, and restricted cash at end of period | $ | 237 | | | $ | 154 | |
|
The accompanying notes are an integral part of these consolidated financial statements.
AMEREN CORPORATION
CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY
(Unaudited) (In millions, except per share amounts)
| | | | | Three Months Ended March 31, | | | Three Months Ended March 31, |
| | | | 2022 | | 2021 | | | 2023 | | 2022 |
| | Common Stock | Common Stock | | $ | 3 | | | $ | 3 | | Common Stock | | $ | 3 | | | $ | 3 | |
| | | Other Paid-in Capital: | Other Paid-in Capital: | | | Other Paid-in Capital: | | |
| Beginning of year | Beginning of year | | 6,502 | | | 6,179 | | Beginning of year | | 6,860 | | | 6,502 | |
| Settlement of forward sale agreement through common shares issuance | | — | | | 113 | | |
| | | Shares issued under the DRPlus and 401(k) plan | Shares issued under the DRPlus and 401(k) plan | | 13 | | | 12 | | Shares issued under the DRPlus and 401(k) plan | | 12 | | | 13 | |
| Stock-based compensation activity | Stock-based compensation activity | | (8) | | | (9) | | Stock-based compensation activity | | (11) | | | (8) | |
| | Other paid-in capital, end of period | Other paid-in capital, end of period | | 6,507 | | | 6,295 | | Other paid-in capital, end of period | | 6,861 | | | 6,507 | |
| | Retained Earnings: | Retained Earnings: | | | Retained Earnings: | | |
| Beginning of year | Beginning of year | | 3,182 | | | 2,757 | | Beginning of year | | 3,646 | | | 3,182 | |
| Net income attributable to Ameren common shareholders | Net income attributable to Ameren common shareholders | | 252 | | | 233 | | Net income attributable to Ameren common shareholders | | 264 | | | 252 | |
| Dividends on common stock | Dividends on common stock | | (152) | | | (140) | | Dividends on common stock | | (165) | | | (152) | |
| | Retained earnings, end of period | Retained earnings, end of period | | 3,282 | | | 2,850 | | Retained earnings, end of period | | 3,745 | | | 3,282 | |
| | Accumulated Other Comprehensive Income: | | | |
| Accumulated Other Comprehensive Income (Loss): | | Accumulated Other Comprehensive Income (Loss): | | |
| | Deferred retirement benefit costs, beginning of year | Deferred retirement benefit costs, beginning of year | | 13 | | | (1) | | Deferred retirement benefit costs, beginning of year | | (1) | | | 13 | |
| | Change in deferred retirement benefit costs | Change in deferred retirement benefit costs | | 1 | | | 1 | | Change in deferred retirement benefit costs | | (1) | | | 1 | |
| | Deferred retirement benefit costs, end of period | Deferred retirement benefit costs, end of period | | 14 | | | — | | Deferred retirement benefit costs, end of period | | (2) | | | 14 | |
| Total accumulated other comprehensive income, end of period | | 14 | | | — | | |
| Total accumulated other comprehensive income (loss), end of period | | Total accumulated other comprehensive income (loss), end of period | | (2) | | | 14 | |
| Total Shareholders’ Equity | Total Shareholders’ Equity | | $ | 9,806 | | | $ | 9,148 | | Total Shareholders’ Equity | | $ | 10,607 | | | $ | 9,806 | |
| | Noncontrolling Interests: | Noncontrolling Interests: | | | Noncontrolling Interests: | | |
| Beginning of year | Beginning of year | | 129 | | | 142 | | Beginning of year | | 129 | | | 129 | |
| Net income attributable to noncontrolling interest holders | Net income attributable to noncontrolling interest holders | | 1 | | | 2 | | Net income attributable to noncontrolling interest holders | | 1 | | | 1 | |
| Dividends paid to noncontrolling interest holders | Dividends paid to noncontrolling interest holders | | (1) | | | (2) | | Dividends paid to noncontrolling interest holders | | (1) | | | (1) | |
| Redemptions of Ameren Illinois preferred stock | | — | | | (13) | | |
| | | Noncontrolling interests, end of period | Noncontrolling interests, end of period | | 129 | | | 129 | | Noncontrolling interests, end of period | | 129 | | | 129 | |
| Total Equity | Total Equity | | $ | 9,935 | | | $ | 9,277 | | Total Equity | | $ | 10,736 | | | $ | 9,935 | |
| | | Common stock shares outstanding at beginning of year | Common stock shares outstanding at beginning of year | | 257.7 | | | 253.3 | | Common stock shares outstanding at beginning of year | | 262.0 | | | 257.7 | |
| Shares issued under forward sale agreement | | — | | | 1.6 | | |
| | | Shares issued under the DRPlus and 401(k) plan | Shares issued under the DRPlus and 401(k) plan | | 0.1 | | | 0.1 | | Shares issued under the DRPlus and 401(k) plan | | 0.1 | | | 0.1 | |
| Shares issued for stock-based compensation | Shares issued for stock-based compensation | | 0.4 | | | 0.5 | | Shares issued for stock-based compensation | | 0.5 | | | 0.4 | |
| Common stock shares outstanding at end of period | Common stock shares outstanding at end of period | | 258.2 | | | 255.5 | | Common stock shares outstanding at end of period | | 262.6 | | | 258.2 | |
| | Dividends per common share | Dividends per common share | | $ | 0.59 | | | $ | 0.55 | | Dividends per common share | | $ | 0.63 | | | $ | 0.59 | |
The accompanying notes are an integral part of these consolidated financial statements.
UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
CONSOLIDATED STATEMENT OF INCOME
(Unaudited) (In millions)
| | | | | Three Months Ended March 31, | | | Three Months Ended March 31, |
| | | | 2022 | | 2021 | | | 2023 | | 2022 |
| Operating Revenues: | Operating Revenues: | | | | | Operating Revenues: | | | | |
| Electric | Electric | | $ | 738 | | | $ | 641 | | Electric | | $ | 841 | | | $ | 738 | |
| Natural gas | Natural gas | | 80 | | | 63 | | Natural gas | | 82 | | | 80 | |
| | Total operating revenues | Total operating revenues | | 818 | | | 704 | | Total operating revenues | | 923 | | | 818 | |
| Operating Expenses: | Operating Expenses: | | | | | Operating Expenses: | | | | |
| Fuel | Fuel | | 176 | | | 65 | | Fuel | | 113 | | | 176 | |
| Purchased power | Purchased power | | 50 | | | 88 | | Purchased power | | 208 | | | 50 | |
| Natural gas purchased for resale | Natural gas purchased for resale | | 46 | | | 31 | | Natural gas purchased for resale | | 47 | | | 46 | |
| Other operations and maintenance | Other operations and maintenance | | 232 | | | 225 | | Other operations and maintenance | | 239 | | | 232 | |
| | Depreciation and amortization | Depreciation and amortization | | 164 | | | 156 | | Depreciation and amortization | | 176 | | | 164 | |
| Taxes other than income taxes | Taxes other than income taxes | | 85 | | | 77 | | Taxes other than income taxes | | 80 | | | 85 | |
| Total operating expenses | Total operating expenses | | 753 | | | 642 | | Total operating expenses | | 863 | | | 753 | |
| Operating Income | Operating Income | | 65 | | | 62 | | Operating Income | | 60 | | | 65 | |
| | Other Income, Net | Other Income, Net | | 23 | | | 23 | | Other Income, Net | | 19 | | | 23 | |
| Interest Charges | Interest Charges | | 39 | | | 39 | | Interest Charges | | 51 | | | 39 | |
| Income Before Income Taxes | Income Before Income Taxes | | 49 | | | 46 | | Income Before Income Taxes | | 28 | | | 49 | |
| Income Taxes (Benefit) | | (2) | | | (2) | | |
| Income Taxes Benefit | | Income Taxes Benefit | | (1) | | | (2) | |
| Net Income | Net Income | | 51 | | | 48 | | Net Income | | 29 | | | 51 | |
| | Preferred Stock Dividends | Preferred Stock Dividends | | 1 | | | 1 | | Preferred Stock Dividends | | 1 | | | 1 | |
| Net Income Available to Common Shareholder | Net Income Available to Common Shareholder | | $ | 50 | | | $ | 47 | | Net Income Available to Common Shareholder | | $ | 28 | | | $ | 50 | |
The accompanying notes as they relate to Ameren Missouri are an integral part of these consolidated financial statements.
UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
CONSOLIDATED BALANCE SHEET
(Unaudited) (In millions, except per share amounts)
| | | March 31, 2022 | | December 31, 2021 | | March 31,
2023 | | December 31, 2022 |
| ASSETS | ASSETS | | | | ASSETS | | | |
| Current Assets: | Current Assets: | | Current Assets: | |
| Cash and cash equivalents | Cash and cash equivalents | $ | 1 | | | $ | — | | Cash and cash equivalents | $ | 3 | | | $ | — | |
| | Accounts receivable – trade (less allowance for doubtful accounts of $11 and $13, respectively) | 190 | | | 190 | | |
| Accounts receivable – trade (less allowance for doubtful accounts of $12 and $13, respectively) | | Accounts receivable – trade (less allowance for doubtful accounts of $12 and $13, respectively) | 205 | | | 244 | |
| Accounts receivable – affiliates | Accounts receivable – affiliates | 47 | | | 44 | | Accounts receivable – affiliates | 70 | | | 51 | |
| Unbilled revenue | Unbilled revenue | 134 | | | 142 | | Unbilled revenue | 148 | | | 184 | |
| Miscellaneous accounts receivable | Miscellaneous accounts receivable | 57 | | | 71 | | Miscellaneous accounts receivable | 18 | | | 18 | |
| Inventories | Inventories | 414 | | | 419 | | Inventories | 475 | | | 434 | |
| | Current regulatory assets | Current regulatory assets | 141 | | | 127 | | Current regulatory assets | 194 | | | 254 | |
| Investment in industrial development revenue bonds | | Investment in industrial development revenue bonds | — | | | 240 | |
| Current collateral assets | Current collateral assets | 110 | | | 66 | | Current collateral assets | 29 | | | 101 | |
| Other current assets | Other current assets | 86 | | | 76 | | Other current assets | 40 | | | 66 | |
| Total current assets | Total current assets | 1,180 | | | 1,135 | | Total current assets | 1,182 | | | 1,592 | |
| Property, Plant, and Equipment, Net | Property, Plant, and Equipment, Net | 15,434 | | | 15,296 | | Property, Plant, and Equipment, Net | 16,326 | | | 16,124 | |
| Investments and Other Assets: | Investments and Other Assets: | | Investments and Other Assets: | |
| Nuclear decommissioning trust fund | Nuclear decommissioning trust fund | 1,094 | | | 1,159 | | Nuclear decommissioning trust fund | 1,019 | | | 958 | |
| | Regulatory assets | Regulatory assets | 582 | | | 523 | | Regulatory assets | 628 | | | 594 | |
| Pension and other postretirement benefits | Pension and other postretirement benefits | 212 | | | 208 | | Pension and other postretirement benefits | 102 | | | 98 | |
| Other assets | Other assets | 418 | | | 401 | | Other assets | 136 | | | 140 | |
| Total investments and other assets | Total investments and other assets | 2,306 | | | 2,291 | | Total investments and other assets | 1,885 | | | 1,790 | |
| TOTAL ASSETS | TOTAL ASSETS | $ | 18,920 | | | $ | 18,722 | | TOTAL ASSETS | $ | 19,393 | | | $ | 19,506 | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | LIABILITIES AND SHAREHOLDERS’ EQUITY | | | |
| Current Liabilities: | Current Liabilities: | | Current Liabilities: | |
| Current maturities of long-term debt | Current maturities of long-term debt | $ | 55 | | | $ | 55 | | Current maturities of long-term debt | $ | — | | | $ | 240 | |
| Short-term debt | Short-term debt | 528 | | | 165 | | Short-term debt | 197 | | | 329 | |
| | Accounts and wages payable | Accounts and wages payable | 342 | | | 631 | | Accounts and wages payable | 294 | | | 606 | |
| Accounts payable – affiliates | Accounts payable – affiliates | 36 | | | 46 | | Accounts payable – affiliates | 36 | | | 43 | |
| Taxes accrued | Taxes accrued | 80 | | | 34 | | Taxes accrued | 76 | | | 29 | |
| Interest accrued | | Interest accrued | 50 | | | 63 | |
| | Mark-to-market derivative liabilities | 109 | | | 53 | | |
| | Current regulatory liabilities | 101 | | | 58 | | |
| | Other current liabilities | Other current liabilities | 159 | | | 175 | | Other current liabilities | 187 | | | 260 | |
| Total current liabilities | Total current liabilities | 1,410 | | | 1,217 | | Total current liabilities | 840 | | | 1,570 | |
| Long-term Debt, Net | Long-term Debt, Net | 5,564 | | | 5,564 | | Long-term Debt, Net | 6,341 | | | 5,846 | |
| Deferred Credits and Other Liabilities: | Deferred Credits and Other Liabilities: | | Deferred Credits and Other Liabilities: | |
| Accumulated deferred income taxes and tax credits, net | Accumulated deferred income taxes and tax credits, net | 1,866 | | | 1,852 | | Accumulated deferred income taxes and tax credits, net | 2,003 | | | 1,982 | |
| | Regulatory liabilities | Regulatory liabilities | 3,278 | | | 3,354 | | Regulatory liabilities | 2,934 | | | 2,871 | |
| Asset retirement obligations | Asset retirement obligations | 765 | | | 753 | | Asset retirement obligations | 765 | | | 759 | |
| | Other deferred credits and liabilities | Other deferred credits and liabilities | 76 | | | 71 | | Other deferred credits and liabilities | 55 | | | 51 | |
| Total deferred credits and other liabilities | Total deferred credits and other liabilities | 5,985 | | | 6,030 | | Total deferred credits and other liabilities | 5,757 | | | 5,663 | |
| Commitments and Contingencies (Notes 2, 8, 9, and 10) | Commitments and Contingencies (Notes 2, 8, 9, and 10) | 0 | | 0 | Commitments and Contingencies (Notes 2, 8, 9, and 10) | | | |
| Shareholders’ Equity: | Shareholders’ Equity: | | Shareholders’ Equity: | |
| Common stock, $5 par value, 150.0 shares authorized – 102.1 shares outstanding | Common stock, $5 par value, 150.0 shares authorized – 102.1 shares outstanding | 511 | | | 511 | | Common stock, $5 par value, 150.0 shares authorized – 102.1 shares outstanding | 511 | | | 511 | |
| Other paid-in capital, principally premium on common stock | Other paid-in capital, principally premium on common stock | 2,725 | | | 2,725 | | Other paid-in capital, principally premium on common stock | 2,725 | | | 2,725 | |
| Preferred stock | Preferred stock | 80 | | | 80 | | Preferred stock | 80 | | | 80 | |
| Retained earnings | Retained earnings | 2,645 | | | 2,595 | | Retained earnings | 3,139 | | | 3,111 | |
| Total shareholders’ equity | Total shareholders’ equity | 5,961 | | | 5,911 | | Total shareholders’ equity | 6,455 | | | 6,427 | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 18,920 | | | $ | 18,722 | | TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 19,393 | | | $ | 19,506 | |
The accompanying notes as they relate to Ameren Missouri are an integral part of these consolidated financial statements.
UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited) (In millions)
| | | Three Months Ended March 31, | | Three Months Ended March 31, |
| | 2022 | | 2021 | | 2023 | | 2022 |
| Cash Flows From Operating Activities: | Cash Flows From Operating Activities: | | | | Cash Flows From Operating Activities: | | | |
| Net income | Net income | $ | 51 | | | $ | 48 | | Net income | $ | 29 | | | $ | 51 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | | Adjustments to reconcile net income to net cash provided by operating activities: | |
| | Depreciation and amortization | Depreciation and amortization | 189 | | | 171 | | Depreciation and amortization | 205 | | | 189 | |
| Amortization of nuclear fuel | Amortization of nuclear fuel | 22 | | | — | | Amortization of nuclear fuel | 19 | | | 22 | |
| | Amortization of debt issuance costs and premium/discounts | Amortization of debt issuance costs and premium/discounts | 1 | | | 1 | | Amortization of debt issuance costs and premium/discounts | 2 | | | 1 | |
| Deferred income taxes and investment tax credits, net | Deferred income taxes and investment tax credits, net | 4 | | | 4 | | Deferred income taxes and investment tax credits, net | 15 | | | 4 | |
| Allowance for equity funds used during construction | Allowance for equity funds used during construction | (4) | | | (4) | | Allowance for equity funds used during construction | (4) | | | (4) | |
| Other | Other | — | | | 3 | | Other | (3) | | | — | |
| Changes in assets and liabilities: | Changes in assets and liabilities: | | Changes in assets and liabilities: | |
| Receivables | Receivables | 7 | | | 20 | | Receivables | 74 | | | 7 | |
| Inventories | Inventories | 5 | | | 24 | | Inventories | (41) | | | 5 | |
| Accounts and wages payable | Accounts and wages payable | (201) | | | (201) | | Accounts and wages payable | (238) | | | (201) | |
| Taxes accrued | Taxes accrued | 41 | | | 39 | | Taxes accrued | 38 | | | 41 | |
| Regulatory assets and liabilities | Regulatory assets and liabilities | (3) | | | (164) | | Regulatory assets and liabilities | 14 | | | (3) | |
| Assets, other | Assets, other | (34) | | | 13 | | Assets, other | 2 | | | 10 | |
| Liabilities, other | Liabilities, other | (18) | | | (9) | | Liabilities, other | (11) | | | (23) | |
| Pension and other postretirement benefits | Pension and other postretirement benefits | (4) | | | 4 | | Pension and other postretirement benefits | (21) | | | (4) | |
| | Net cash provided by (used in) operating activities | 56 | | | (51) | | |
| Counterparty collateral, net | | Counterparty collateral, net | 73 | | | (39) | |
| Net cash provided by operating activities | | Net cash provided by operating activities | 153 | | | 56 | |
| Cash Flows From Investing Activities: | Cash Flows From Investing Activities: | | | | Cash Flows From Investing Activities: | | | |
| Capital expenditures | Capital expenditures | (414) | | | (534) | | Capital expenditures | (481) | | | (414) | |
| | Nuclear fuel expenditures | Nuclear fuel expenditures | (16) | | | (1) | | Nuclear fuel expenditures | (20) | | | (16) | |
| Purchases of securities – nuclear decommissioning trust fund | Purchases of securities – nuclear decommissioning trust fund | (97) | | | (152) | | Purchases of securities – nuclear decommissioning trust fund | (29) | | | (97) | |
| Sales and maturities of securities – nuclear decommissioning trust fund | Sales and maturities of securities – nuclear decommissioning trust fund | 92 | | | 150 | | Sales and maturities of securities – nuclear decommissioning trust fund | 17 | | | 92 | |
| | Money pool advances, net | — | | | 139 | | |
| | Other | Other | 18 | | | — | | Other | — | | | 18 | |
| Net cash used in investing activities | Net cash used in investing activities | (417) | | | (398) | | Net cash used in investing activities | (513) | | | (417) | |
| Cash Flows From Financing Activities: | Cash Flows From Financing Activities: | | | | Cash Flows From Financing Activities: | | | |
| | Dividends on preferred stock | Dividends on preferred stock | (1) | | | (1) | | Dividends on preferred stock | (1) | | | (1) | |
| Short-term debt, net | Short-term debt, net | 363 | | | 204 | | Short-term debt, net | (132) | | | 363 | |
| | Issuances of long-term debt | | Issuances of long-term debt | 499 | | | — | |
| | Capital contribution from parent | — | | | 113 | | |
| | Debt issuance costs | | Debt issuance costs | (5) | | | — | |
| Other | | Other | (3) | | | — | |
| Net cash provided by financing activities | Net cash provided by financing activities | 362 | | | 316 | | Net cash provided by financing activities | 358 | | | 362 | |
| Net change in cash, cash equivalents, and restricted cash | Net change in cash, cash equivalents, and restricted cash | 1 | | | (133) | | Net change in cash, cash equivalents, and restricted cash | (2) | | | 1 | |
| Cash, cash equivalents, and restricted cash at beginning of year | Cash, cash equivalents, and restricted cash at beginning of year | 8 | | | 145 | | Cash, cash equivalents, and restricted cash at beginning of year | 13 | | | 8 | |
| Cash, cash equivalents, and restricted cash at end of period | Cash, cash equivalents, and restricted cash at end of period | $ | 9 | | | $ | 12 | | Cash, cash equivalents, and restricted cash at end of period | $ | 11 | | | $ | 9 | |
The accompanying notes as they relate to Ameren Missouri are an integral part of these consolidated financial statements.
UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY
(Unaudited) (In millions)
| | | | | Three Months Ended March 31, | | | Three Months Ended March 31, |
| | | | 2022 | | 2021 | | | 2023 | | 2022 |
| Common Stock | Common Stock | | $ | 511 | | | $ | 511 | | Common Stock | | $ | 511 | | | $ | 511 | |
| | Other Paid-in Capital: | | | |
| Beginning of year | | 2,725 | | | 2,518 | | |
| Capital contributions from parent | | — | | | 113 | | |
| Other Paid-in Capital | | Other Paid-in Capital | | 2,725 | | | 2,725 | |
| | Other paid-in capital, end of period | | 2,725 | | | 2,631 | | |
| | | | Preferred Stock | Preferred Stock | | 80 | | | 80 | | Preferred Stock | | 80 | | | 80 | |
| | Retained Earnings: | Retained Earnings: | | | Retained Earnings: | | |
| Beginning of year | Beginning of year | | 2,595 | | | 2,101 | | Beginning of year | | 3,111 | | | 2,595 | |
| Net income | Net income | | 51 | | | 48 | | Net income | | 29 | | | 51 | |
| | Dividends on preferred stock | Dividends on preferred stock | | (1) | | | (1) | | Dividends on preferred stock | | (1) | | | (1) | |
| Retained earnings, end of period | Retained earnings, end of period | | 2,645 | | | 2,148 | | Retained earnings, end of period | | 3,139 | | | 2,645 | |
| | Total Shareholders’ Equity | Total Shareholders’ Equity | | $ | 5,961 | | | $ | 5,370 | | Total Shareholders’ Equity | | $ | 6,455 | | | $ | 5,961 | |
The accompanying notes as they relate to Ameren Missouri are an integral part of these consolidated financial statements.
AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
STATEMENT OF INCOME
(Unaudited) (In millions)
| | | | | Three Months Ended March 31, | | | Three Months Ended March 31, |
| | | | 2022 | | 2021 | | | 2023 | | 2022 |
| Operating Revenues: | Operating Revenues: | | | | | Operating Revenues: | | | | |
| Electric | Electric | | $ | 543 | | | $ | 476 | | Electric | | $ | 710 | | | $ | 543 | |
| Natural gas | Natural gas | | 481 | | | 347 | | Natural gas | | 391 | | | 481 | |
| Total operating revenues | Total operating revenues | | 1,024 | | | 823 | | Total operating revenues | | 1,101 | | | 1,024 | |
| Operating Expenses: | Operating Expenses: | | | | | Operating Expenses: | | | | |
| Purchased power | Purchased power | | 131 | | | 106 | | Purchased power | | 287 | | | 131 | |
| Natural gas purchased for resale | Natural gas purchased for resale | | 247 | | | 134 | | Natural gas purchased for resale | | 161 | | | 247 | |
| Other operations and maintenance | Other operations and maintenance | | 223 | | | 194 | | Other operations and maintenance | | 202 | | | 223 | |
| Depreciation and amortization | Depreciation and amortization | | 124 | | | 115 | | Depreciation and amortization | | 133 | | | 124 | |
| Taxes other than income taxes | Taxes other than income taxes | | 53 | | | 46 | | Taxes other than income taxes | | 42 | | | 53 | |
| Total operating expenses | Total operating expenses | | 778 | | | 595 | | Total operating expenses | | 825 | | | 778 | |
| Operating Income | Operating Income | | 246 | | | 228 | | Operating Income | | 276 | | | 246 | |
| | Other Income, Net | Other Income, Net | | 24 | | | 14 | | Other Income, Net | | 37 | | | 24 | |
| Interest Charges | Interest Charges | | 42 | | | 42 | | Interest Charges | | 47 | | | 42 | |
| Income Before Income Taxes | Income Before Income Taxes | | 228 | | | 200 | | Income Before Income Taxes | | 266 | | | 228 | |
| Income Taxes | Income Taxes | | 59 | | | 50 | | Income Taxes | | 68 | | | 59 | |
| Net Income | | 169 | | | 150 | | |
| | Preferred Stock Dividends | | — | | | 1 | | |
| | Net Income Available to Common Shareholder | Net Income Available to Common Shareholder | | $ | 169 | | | $ | 149 | | Net Income Available to Common Shareholder | | $ | 198 | | | $ | 169 | |
The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.
AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
BALANCE SHEET
(Unaudited) (In millions)
| | | March 31, 2022 | | December 31, 2021 | | March 31,
2023 | | December 31, 2022 |
| ASSETS | ASSETS | | | | ASSETS | | | |
| Current Assets: | Current Assets: | | Current Assets: | |
| Cash and cash equivalents | Cash and cash equivalents | $ | — | | | $ | — | | Cash and cash equivalents | $ | — | | | $ | — | |
| | Accounts receivable – trade (less allowance for doubtful accounts of $17 and $16, respectively) | 356 | | | 228 | | |
| Accounts receivable – trade (less allowance for doubtful accounts of $22 and $18, respectively) | | Accounts receivable – trade (less allowance for doubtful accounts of $22 and $18, respectively) | 406 | | | 341 | |
| Accounts receivable – affiliates | Accounts receivable – affiliates | 12 | | | 24 | | Accounts receivable – affiliates | 14 | | | 12 | |
| Unbilled revenue | Unbilled revenue | 149 | | | 159 | | Unbilled revenue | 151 | | | 262 | |
| Miscellaneous accounts receivable | Miscellaneous accounts receivable | 12 | | | 1 | | Miscellaneous accounts receivable | 32 | | | 23 | |
| Inventories | Inventories | 106 | | | 173 | | Inventories | 155 | | | 233 | |
| Mark-to-market derivative assets | 79 | | | 28 | | |
| | | Current regulatory assets | Current regulatory assets | 93 | | | 180 | | Current regulatory assets | 89 | | | 87 | |
| | Other current assets | Other current assets | 26 | | | 30 | | Other current assets | 36 | | | 98 | |
| Total current assets | Total current assets | 833 | | | 823 | | Total current assets | 883 | | | 1,056 | |
| Property, Plant, and Equipment, Net | Property, Plant, and Equipment, Net | 12,396 | | | 12,223 | | Property, Plant, and Equipment, Net | 13,602 | | | 13,353 | |
| Investments and Other Assets: | Investments and Other Assets: | | Investments and Other Assets: | |
| Goodwill | Goodwill | 411 | | | 411 | | Goodwill | 411 | | | 411 | |
| Regulatory assets | Regulatory assets | 780 | | | 752 | | Regulatory assets | 954 | | | 821 | |
| Pension and other postretirement benefits | Pension and other postretirement benefits | 435 | | | 427 | | Pension and other postretirement benefits | 324 | | | 318 | |
| Other assets | Other assets | 436 | | | 399 | | Other assets | 510 | | | 482 | |
| Total investments and other assets | Total investments and other assets | 2,062 | | | 1,989 | | Total investments and other assets | 2,199 | | | 2,032 | |
| TOTAL ASSETS | TOTAL ASSETS | $ | 15,291 | | | $ | 15,035 | | TOTAL ASSETS | $ | 16,684 | | | $ | 16,441 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | LIABILITIES AND SHAREHOLDERS’ EQUITY | | | |
| Current Liabilities: | Current Liabilities: | | Current Liabilities: | |
| Current maturities of long-term debt | Current maturities of long-term debt | $ | 400 | | | $ | 400 | | Current maturities of long-term debt | $ | 100 | | | $ | 100 | |
| Short-term debt | Short-term debt | 107 | | | 103 | | Short-term debt | 324 | | | 264 | |
| | Accounts and wages payable | Accounts and wages payable | 286 | | | 361 | | Accounts and wages payable | 304 | | | 451 | |
| Accounts payable – affiliates | Accounts payable – affiliates | 80 | | | 64 | | Accounts payable – affiliates | 117 | | | 93 | |
| | Current regulatory liabilities | 118 | | | 54 | | |
| | Other current liabilities | Other current liabilities | 251 | | | 251 | | Other current liabilities | 398 | | | 383 | |
| Total current liabilities | Total current liabilities | 1,242 | | | 1,233 | | Total current liabilities | 1,243 | | | 1,291 | |
| Long-term Debt, Net | Long-term Debt, Net | 3,993 | | | 3,992 | | Long-term Debt, Net | 4,736 | | | 4,735 | |
| Deferred Credits and Other Liabilities: | Deferred Credits and Other Liabilities: | | Deferred Credits and Other Liabilities: | |
| Accumulated deferred income taxes and investment tax credits, net | Accumulated deferred income taxes and investment tax credits, net | 1,593 | | | 1,558 | | Accumulated deferred income taxes and investment tax credits, net | 1,744 | | | 1,699 | |
| | Regulatory liabilities | Regulatory liabilities | 2,442 | | | 2,374 | | Regulatory liabilities | 2,334 | | | 2,313 | |
| | Other deferred credits and liabilities | Other deferred credits and liabilities | 212 | | | 238 | | Other deferred credits and liabilities | 261 | | | 235 | |
| Total deferred credits and other liabilities | Total deferred credits and other liabilities | 4,247 | | | 4,170 | | Total deferred credits and other liabilities | 4,339 | | | 4,247 | |
| Commitments and Contingencies (Notes 2, 8, and 9) | Commitments and Contingencies (Notes 2, 8, and 9) | 0 | | 0 | Commitments and Contingencies (Notes 2, 8, and 9) | | | |
| Shareholders' Equity: | | |
| Shareholders’ Equity: | | Shareholders’ Equity: | |
| Common stock, no par value, 45.0 shares authorized – 25.5 shares outstanding | Common stock, no par value, 45.0 shares authorized – 25.5 shares outstanding | — | | | — | | Common stock, no par value, 45.0 shares authorized – 25.5 shares outstanding | — | | | — | |
| Other paid-in capital | Other paid-in capital | 2,914 | | | 2,914 | | Other paid-in capital | 2,929 | | | 2,929 | |
| Preferred stock | Preferred stock | 49 | | | 49 | | Preferred stock | 49 | | | 49 | |
| Retained earnings | Retained earnings | 2,846 | | | 2,677 | | Retained earnings | 3,388 | | | 3,190 | |
| | Total shareholders' equity | 5,809 | | | 5,640 | | |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 15,291 | | | $ | 15,035 | | |
| Total shareholders’ equity | | Total shareholders’ equity | 6,366 | | | 6,168 | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 16,684 | | | $ | 16,441 | |
The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.
AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
STATEMENT OF CASH FLOWS
(Unaudited) (In millions)
| | | Three Months Ended March 31, | | Three Months Ended March 31, |
| | 2022 | | 2021 | | 2023 | | 2022 |
| Cash Flows From Operating Activities: | Cash Flows From Operating Activities: | | | | Cash Flows From Operating Activities: | | | |
| Net income | Net income | $ | 169 | | | $ | 150 | | Net income | $ | 198 | | | $ | 169 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | | Adjustments to reconcile net income to net cash provided by operating activities: | |
| Depreciation and amortization | Depreciation and amortization | 124 | | | 115 | | Depreciation and amortization | 133 | | | 124 | |
| Amortization of debt issuance costs and premium/discounts | Amortization of debt issuance costs and premium/discounts | 3 | | | 3 | | Amortization of debt issuance costs and premium/discounts | 1 | | | 3 | |
| Deferred income taxes and investment tax credits, net | Deferred income taxes and investment tax credits, net | 27 | | | 53 | | Deferred income taxes and investment tax credits, net | 37 | | | 27 | |
| | Allowance for equity funds used during construction | Allowance for equity funds used during construction | (4) | | | (3) | | Allowance for equity funds used during construction | (4) | | | (4) | |
| Other | Other | 2 | | | 6 | | Other | 6 | | | 2 | |
| Changes in assets and liabilities: | Changes in assets and liabilities: | | Changes in assets and liabilities: | |
| Receivables | Receivables | (126) | | | (24) | | Receivables | 26 | | | (126) | |
| Inventories | Inventories | 67 | | | 30 | | Inventories | 78 | | | 67 | |
| Accounts and wages payable | Accounts and wages payable | (18) | | | (40) | | Accounts and wages payable | (112) | | | (18) | |
| Taxes accrued | Taxes accrued | 32 | | | 3 | | Taxes accrued | 25 | | | 32 | |
| Regulatory assets and liabilities | Regulatory assets and liabilities | 79 | | | (255) | | Regulatory assets and liabilities | (52) | | | 79 | |
| Assets, other | Assets, other | (18) | | | (15) | | Assets, other | (8) | | | (18) | |
| Liabilities, other | Liabilities, other | 13 | | | (9) | | Liabilities, other | 30 | | | 5 | |
| Pension and other postretirement benefits | Pension and other postretirement benefits | (8) | | | (1) | | Pension and other postretirement benefits | (24) | | | (8) | |
| | Counterparty collateral, net | | Counterparty collateral, net | 39 | | | 8 | |
| | Net cash provided by operating activities | Net cash provided by operating activities | 342 | | | 13 | | Net cash provided by operating activities | 373 | | | 342 | |
| Cash Flows From Investing Activities: | Cash Flows From Investing Activities: | | | | Cash Flows From Investing Activities: | | | |
| Capital expenditures | Capital expenditures | (342) | | | (337) | | Capital expenditures | (407) | | | (342) | |
| | Net cash used in investing activities | Net cash used in investing activities | (342) | | | (337) | | Net cash used in investing activities | (407) | | | (342) | |
| Cash Flows From Financing Activities: | Cash Flows From Financing Activities: | | | | Cash Flows From Financing Activities: | | | |
| | Dividends on preferred stock | — | | | (1) | | |
| | Short-term debt, net | Short-term debt, net | 4 | | | 323 | | Short-term debt, net | 60 | | | 4 | |
| Money pool borrowings, net | — | | | (19) | | |
| | Capital contributions from parent | — | | | 40 | | |
| Redemption of preferred stock | — | | | (13) | | |
| | Other | — | | | (4) | | |
| | Net cash provided by financing activities | Net cash provided by financing activities | 4 | | | 326 | | Net cash provided by financing activities | 60 | | | 4 | |
| Net change in cash, cash equivalents, and restricted cash | Net change in cash, cash equivalents, and restricted cash | 4 | | | 2 | | Net change in cash, cash equivalents, and restricted cash | 26 | | | 4 | |
| Cash, cash equivalents and restricted cash at beginning of year | Cash, cash equivalents and restricted cash at beginning of year | 133 | | | 147 | | Cash, cash equivalents and restricted cash at beginning of year | 191 | | | 133 | |
| Cash, cash equivalents, and restricted cash at end of period | Cash, cash equivalents, and restricted cash at end of period | $ | 137 | | | $ | 149 | | Cash, cash equivalents, and restricted cash at end of period | $ | 217 | | | $ | 137 | |
The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.
AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
STATEMENT OF SHAREHOLDERS’ EQUITY
(Unaudited) (In millions)
| | | | | Three Months Ended March 31, | | | Three Months Ended March 31, |
| | | | 2022 | | 2021 | | | 2023 | | 2022 |
| Common Stock | Common Stock | | $ | — | | | $ | — | | Common Stock | | $ | — | | | $ | — | |
| | Other Paid-in Capital: | | | |
| Beginning of year | | 2,914 | | | 2,652 | | |
| Capital contributions from parent | | — | | | 40 | | |
| | Other paid-in capital, end of period | | 2,914 | | | 2,692 | | |
| Other Paid-in Capital | | Other Paid-in Capital | | 2,929 | | | 2,914 | |
| | | Preferred Stock: | | | |
| Beginning of year | | 49 | | | 62 | | |
| Redemptions of preferred stock | | — | | | (13) | | |
| | Preferred stock, end of period | | 49 | | | 49 | | |
| | | | Preferred Stock | | Preferred Stock | | 49 | | | 49 | |
| | | Retained Earnings: | Retained Earnings: | | | Retained Earnings: | | |
| Beginning of year | Beginning of year | | 2,677 | | | 2,252 | | Beginning of year | | 3,190 | | | 2,677 | |
| Net income | Net income | | 169 | | | 150 | | Net income | | 198 | | | 169 | |
| | Dividends on preferred stock | | — | | | (1) | | |
| | | Retained earnings, end of period | Retained earnings, end of period | | 2,846 | | | 2,401 | | Retained earnings, end of period | | 3,388 | | | 2,846 | |
| | | Total Shareholders’ Equity | Total Shareholders’ Equity | | $ | 5,809 | | | $ | 5,142 | | Total Shareholders’ Equity | | $ | 6,366 | | | $ | 5,809 | |
The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.
AMEREN CORPORATION (Consolidated)
UNION ELECTRIC COMPANY (Consolidated) (d/b/a Ameren Missouri)
AMEREN ILLINOIS COMPANY (d/b/a Ameren Illinois)
COMBINED NOTES TO FINANCIAL STATEMENTS
(Unaudited)
March 31, 20222023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General
Ameren, headquartered in St. Louis, Missouri, is a public utility holding company whose primary assets are its equity interests in its subsidiaries. Ameren’s subsidiaries are separate, independent legal entities with separate businesses, assets, and liabilities. Dividends on Ameren’s common stock and the payment of expenses by Ameren depend on distributions made to it by its subsidiaries. Ameren’s principal subsidiaries are listed below. Ameren has other subsidiaries that conduct other activities, such as providing shared services.
•Union Electric Company, doing business as Ameren Missouri, operates a rate-regulated electric generation, transmission, and distribution business and a rate-regulated natural gas distribution business in Missouri.
•Ameren Illinois Company, doing business as Ameren Illinois, operates rate-regulated electric transmission, electric distribution, and natural gas distribution businesses in Illinois.
•ATXI operates a FERC rate-regulated electric transmission business in the MISO.
The COVID-19 pandemic continues to affect our results of operations, financial position, and liquidity. While our electric sales volumes, excluding the estimated effects of weather and customer energy-efficiency programs, were comparable to the same period in 2021, and total sales volume levels were comparable to pre-pandemic levels, there has been a shift in sales volumes by customer class, which began in 2020, with an increase in residential sales, and a decrease in commercial and industrial sales. While the revenues from Ameren Illinois’ electric distribution business, residential and small nonresidential customers of Ameren Illinois’ natural gas distribution business, and Ameren Illinois’ and ATXI’s electric transmission businesses are decoupled from changes in sales volumes, earnings at Ameren Missouri and those associated with Ameren Illinois’ large nonresidential natural gas customers are exposed to such changes. The continued effect of the COVID-19 pandemic on our results of operations, financial position, and liquidity in subsequent periods will depend on its severity and longevity, future regulatory or legislative actions with respect thereto, and the resulting impact on business, economic, and capital market conditions.
Ameren’s and Ameren Missouri’s financial statements are prepared on a consolidated basis and therefore include the accounts of their majority-owned subsidiaries. All intercompany transactions have been eliminated. Ameren Missouri’s subsidiaries were created for the ownership of renewable generation projects. Ameren Illinois has no subsidiaries. All tabular dollar amounts are in millions, unless otherwise indicated.
Our accounting policies conform to GAAP. Our financial statements reflect all adjustments (which include normal, recurring adjustments) that are necessary, in our opinion, for a fair presentation of our results. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. Such estimates and assumptions affect reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the dates of financial statements, and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for an interim period may not give a true indication of results that may be expected for a full year. These financial statements should be read in conjunction with the financial statements and accompanying notes included in the Form 10-K.
Variable Interest Entities
As of March 31, 2022,2023, and December 31, 2021,2022, Ameren had unconsolidated variable interests as a limited partner in various equity method investments, primarily to advance clean and resilient energy technologies, totaling $60$72 million and $56$68 million, respectively, included in “Other assets” on Ameren’s consolidated balance sheet. Any earnings or losses related to these investments are included in “Other Income, Net” on Ameren’s consolidated statement of income and comprehensive income. Ameren is not the primary beneficiary of these investments because it does not have the power to direct matters that most significantly affect the activities of these variable interest entities. As of March 31, 2022,2023, the maximum exposure to loss related to these variable interests is limited to the investment in these partnerships of $60$72 million plus associated outstanding funding commitments of $28$17 million.
Company-owned Life InsuranceCOLI
Ameren and Ameren Illinois have company-owned life insurance,COLI, which is recorded at the net cash surrender value. The net cash
surrender value is the amount that can be realized under the insurance policies at the balance sheet date. As of March 31, 2022,2023, the cash surrender value of company-owned life insuranceCOLI at Ameren and Ameren Illinois was $258$254 million (December 31, 20212022 – $278$246 million) and $112$120 million (December 31, 20212022 – $117$118 million), respectively, while total borrowings against the policies were $103$110 million (December 31, 20212022 – $109$110 million) at both Ameren and Ameren Illinois. Ameren and Ameren Illinois have the right to offset the borrowings against the cash surrender value of the policies and, consequently, present the net asset in “Other assets” on their respective balance sheets. The net cash surrender value of Ameren’s company-owned life insuranceCOLI is affected by the investment performance of a separate account in which Ameren holds a beneficial interest.
NOTE 2 – RATE AND REGULATORY MATTERS
Below is a summary of updates to significant regulatory proceedings and related legal proceedings. See Note 2 – Rate and Regulatory Matters under Part II, Item 8, of the Form 10-K for additional information and a summary of our regulatory frameworks. We are unable to
predict the ultimate outcome of these matters, the timing of final decisions of the various agencies and courts, or the impact on our results of operations, financial position, or liquidity.
Missouri
December 2021 MoPSC2022 Electric and Natural GasService Regulatory Rate OrdersReview
In December 2021,August 2022, Ameren Missouri filed a request with the MoPSC issued orders inseeking approval to increase its annual revenues for electric service by $316 million. In April 2023, Ameren Missouri, the MoPSC staff, the MoOPC, and certain intervenors filed a nonunanimous stipulation and agreement with the MoPSC to increase Ameren Missouri’s 2021annual revenues for electric service by $140 million. The remaining intervenors did not object to the agreement. The stipulation and natural gas delivery service regulatoryagreement, which is subject to MoPSC approval, did not specify an allowed ROE, capital structure, rate reviews.base, or any rate base disallowances. The stipulation and agreement includes the continued use of the FAC and trackers for pension and postretirement benefits, uncertain income tax positions, certain excess deferred income taxes, and renewable energy standard costs that the MoPSC previously authorized in earlier electric rate orders, as well as the use of an electric property tax tracker. It also includes a tracker for future production and investment tax credits and proceeds from the sale of tax credits allowed under the IRA. For additional information regarding the property tax tracker and the IRA, see Note 2 – Rate and Regulatory Matters and Note 12 – Income Taxes under Part II, Item 8, in the Form 10-K.
A decision by the MoPSC on the nonunanimous stipulation and agreement is expected by June 2023, with new electric and natural gas rates approved by these orders went intoexpected to take effect on February 28,July 1, 2023. Ameren Missouri cannot predict whether the MoPSC will approve the stipulation and agreement, or, if approved, whether any application for rehearing or appeal will be filed, or the outcome if so filed. In addition, if the MoPSC does not approve the stipulation and agreement, Ameren Missouri cannot predict the level of any electric service rate change the MoPSC may approve, whether the requested regulatory recovery mechanisms will be approved, or whether any rate change that may eventually be approved will be sufficient for Ameren Missouri to recover its costs and earn a reasonable return on its investments when the rate change goes into effect.
Solar Generation Facilities
In 2022, Ameren Missouri, through its subsidiaries, entered into build-transfer agreements to acquire, after construction, the solar facilities below. The following table provides information with respect to each build-transfer agreement:
| | | | | | | | | | | |
| | Boomtown Solar Project(a) | Huck Finn Solar Project(b) |
| Agreement date | | February 2022 | June 2022 |
| | | |
| Developer | | Invenergy Renewables, LLC | EDF Renewables, Inc. |
| Facility size | | 150-MW | 200-MW |
| Location | | Southeastern Illinois | Central Missouri |
| Status of MoPSC CCN | | Approved April 2023 | Approved February 2023 |
| Status of FERC approval of acquisition | | Expect to request by mid-2023 | Received March 2023 |
Expected completion date(c) | | As early as fourth quarter 2024 | As early as fourth quarter 2024 |
(a)The Boomtown Solar Project is expected to support Ameren Missouri’s transition to renewable energy generation and serve customers under the Renewable Solutions Program discussed below.
(b)The Huck Finn Solar Project represents approximately $0.35 billion of capital expenditures and is expected to support Ameren Missouri’s compliance with the state of Missouri’s requirement of achieving 15% of retail sales from renewable energy sources, of which 2% must be derived from solar energy sources.
(c)The expected completion dates may be impacted by the timing of FERC approval for the Boomtown Solar Project and potential sourcing issues resulting from a United States Department of Commerce investigation of solar panel components imported from four Southeast Asian countries initiated in March 2022 and the detention of certain solar panel components sourced from China as a result of the Uyghur Forced Labor Prevention Act that became effective in June 2022.
Renewable Solutions Program
The April 2023 MoPSC order approving the CCN for the Boomtown Solar Project also approved Ameren Missouri’s Renewable Solutions Program and a tariff related to participation in the program. The program will allow certain commercial, industrial, and governmental customers who enroll in the program to receive up to 100% of their energy from renewable resources.
MoPSC Staff Review of Planned Rush Island Energy Center Retirement
In February 2022, the MoPSC issued an order directing the MoPSC staff to review Ameren Missouri’s planned accelerated retirement of the Rush Island Energy Center as a result of the NSR and Clean Air Act Litigation discussed in Note 9 – Commitments and Contingencies. The MoPSC staff’s review will includeincludes potential impacts on the reliability and cost of Ameren Missouri’s service to its customers,customers; Ameren Missouri’s plans to mitigate the customer impacts of the accelerated retirement,retirement; and the prudence of Ameren Missouri’s actions and decisions with regard to the Rush Island Energy Center, among other things. In April 2022, the MoPSC staff filed an initial report with the MoPSC in which the staff concluded early retirement of the Rush Island Energy Center may cause reliability concerns. The MoPSC staff is under no deadline to complete this review. Ameren Missouri is unable to predict the results of this matter; however, resultsmatter. Results of the review could be used
in other MoPSC proceedings, which could have a material adverse effect on the results of operations, financial position, and liquidity of Ameren and Ameren Missouri.
MEEIA
In March 2023, Ameren Missouri filed a proposed customer energy-efficiency plan with the MoPSC under the MEEIA. This filing proposed a three-year plan, which includes a portfolio of customer energy-efficiency programs, along with the continued use of the MEEIA rider, which allows Ameren Missouri to collect from, or refund to, customers any difference in actual MEEIA program costs and related lost electric margins and the amounts collected from customers. If the plan is approved, Ameren Missouri intends to invest $122 million annually in the proposed customer energy-efficiency programs from 2024 to 2026. In addition, Ameren Missouri requested performance incentives applicable to each plan year to earn additional revenues by achieving certain customer energy-efficiency and target spending goals. If 100% of the goals are achieved, Ameren Missouri would earn additional revenues totaling $55 million over the three-year plan. Ameren Missouri also requested additional performance incentives applicable to each plan year totaling up to $14 million over the three-year plan, if Ameren Missouri exceeds 100% of the goals. The MoPSC is under no deadline to issue an order in this proceeding.
Illinois
MYRP
In January 2023, Ameren Illinois filed an MYRP with the ICC to be used in setting electric distribution service rates for 2024 through 2027. Under the MYRP, the ICC would approve base rates for electric distribution service to be charged to customers for each calendar year of the four-year period. The following table includes the forecasted revenue requirement, the requested ROE, Performance Metricsthe requested capital structure common equity percentage, and the forecasted average annual rate base for 2024 through 2027, as reflected in Ameren Illinois’ MYRP:
| | | | | | | | | | | | | | |
| Year | Forecasted Revenue Requirement (in millions) | Requested ROE | Requested Capital Structure Common Equity Percentage(a) | Forecasted Average Annual Rate Base (in billions) |
| 2024 | $1,282 | 10.5% | 53.99% | $4.3 |
| 2025 | $1,373 | 10.5% | 53.97% | $4.6 |
| 2026 | $1,477 | 10.5% | 54.02% | $5.0 |
| 2027 | $1,556 | 10.5% | 54.03% | $5.3 |
(a)A capital structure of up to and including 50% common equity is deemed prudent and reasonable by law. A higher equity ratio requires specific ICC approval.
Under an MYRP, the IETL permits any initial rate increase to be phased in, with at least 50% of the first annual period’s approved rate increase reflected in rates in the first annual period, with the remaining portion deferred as a regulatory asset that earns a return at the applicable WACC and is collected from customers over a period not to exceed two years beginning within one year after the second annual period’s rates are effective. Ameren Illinois’ MYRP filing utilizes this phase-in provision and proposes to defer 50% of the requested 2024 rate increase of $171 million as a regulatory asset to be collected from customers in 2026. Ameren Illinois recognizes revenues when amounts are expected to be collected from customers within two years from the end of an applicable year. An ICC decision in this proceeding is required by December 2023, with new rates effective starting in January 2024. Ameren Illinois cannot predict the level of any electric distribution service rate change the ICC may approve, or whether any rate change that may eventually be approved will be sufficient for Ameren Illinois to recover its costs to the extent those costs are subject to and exceed the reconciliation cap discussed below and earn a reasonable return on its investments when the rate change goes into effect.
The MYRP also allows Ameren Illinois to reconcile its actual revenue requirement, as adjusted for certain cost variations, to ICC-approved electric distribution service rates on an annual basis, subject to a reconciliation cap. The reconciliation cap limits the annual adjustment to 105% of the annual revenue requirement approved by the ICC. Certain variations from forecasted costs would be excluded from the reconciliation cap, including those associated with major storms; new business and facility relocations; changes in the timing of certain expenditures or investments into or out of the applicable calendar year; and changes in interest rates, income taxes, taxes other than income taxes, pension and other post-retirement benefits costs, and amortization of certain assets. The reconciliation cap also excludes costs recovered through riders outside of base rates, such as riders for electric energy-efficiency investments, power procurement and transmission services, renewable energy credit compliance, zero emission credits, certain environmental costs, and bad debt write-offs, among others. Ameren Illinois’ existing riders will remain effective and electric distribution service revenues will continue to be decoupled from sales volumes under the MYRP. The actual revenue requirement for a particular year would incorporate Ameren Illinois’ year-end rate base and actual capital structure for such year, provided that the common equity ratio in such capital structure may not exceed that approved by the ICC in the MYRP. Excluding the phase-in of the initial rate increase discussed above, and subject to the reconciliation cap, if a given year’s revenue amount collected from customers varies from the approved revenue requirement, an adjustment would be made to electric operating revenues with an offset to a regulatory asset or liability to reflect that year’s actual revenue requirement, independent of actual sales volumes. The regulatory balance would then be collected from, or refunded to, customers within two years from the end of the applicable annual period.
Under the MYRP, the ROE approved by the ICC wouldwill be subject to annual adjustments during the four-year period based on certainseven performance metrics, with aggregate symmetrical performance-basedmetrics. In 2022, the ICC issued an order approving total ROE incentives and penalties ranging from 20 to 60of 24 basis points, annually. allocated among the seven performance metrics. These performance metrics include improvements in service reliability in both the frequency and duration of outages, a reduction in peak loads, an increased percentage of spend with diverse suppliers, a reduction in disconnections for certain customers, and improved timeliness in response to customer requests for interconnection of distributed energy resources. These performance metrics will apply annually from 2024 through 2027 under the MYRP, and the impact of any incentives and penalties will be excluded from the reconciliation cap described above.
2022 Electric Distribution Revenue Requirement Reconciliation Adjustment Request
In January 2022,April 2023, Ameren Illinois filed for a requestreconciliation adjustment to its 2022 electric distribution service revenue requirement with the ICC, proposing performance metrics that would be used in determining ROE incentives and penalties.requesting recovery of $127 million. The ICC is required to issue an order on this matter by September 30, 2022.
Electric Distribution Service Rates Under IEIMA
In Aprilreconciliation adjustment reflects Ameren Illinois’ actual 2022 Ameren Illinois filed its annual electric distribution service performance-based formula rate update with the ICC to be used for 2023 rates, requesting an increase of $83 million. This update reflects an increase to the annual performance-based formula rate based on 2021 actual recoverable costs, year-end rate base, and expected net plant additions for 2022, an increase to include the 2021 revenue requirement reconciliation adjustment including a capital structure, which was composed of 54%53.99% common equity, and a decrease for the conclusion of the 2020 revenue requirement reconciliation adjustment, which will be fully collected from customers in 2022, consistent with the ICC’s December 2021 annual update filing order.equity. An ICC decision in this proceeding is required by December 2022, with new rates effective in January 2023.
Electric Customer Energy-Efficiency Investments
In April 2022, Ameren Illinois filed a revised energy-efficiency plan with the ICC to invest approximately $120 million per year in electric energy-efficiency programs through 2025, which reflects the increased level of annual investments allowed under the IETL. The ICC has the ability to reduce the amount of electric energy-efficiency savings goals in future plan program years if there are insufficient cost-effective programs available, which could reduce the investments in electric energy-efficiency programs. The electric energy-efficiency program investments2023, and the return on those investments areany approved adjustment would be collected from customers through a rider and are not recovered through the electric distribution service performance-based formula ratemaking framework. The ICC is under no deadline to issue an order in this proceeding.2024.
QIP Reconciliation Hearing2023 Natural Gas Delivery Service Regulatory Rate Review
In March 2020,January 2023, Ameren Illinois filed a request with the ICC for a reconciliation hearingseeking approval to determine the accuracy and prudence ofincrease its annual revenues for natural gas capital investmentsdelivery service by $160 million, which included an estimated $77 million of annual revenues that would otherwise be recovered under the QIP rider during 2019.and other riders. The request is based on a 10.7% allowed ROE, a capital structure composed of 53.99% common equity, and a rate base of $2.9 billion. In August 2021, thean attempt to reduce regulatory lag, Ameren Illinois Attorney General’s office challenged the recovery of capital investments that were made during 2019, alleging that the ICC should disallow approximately $70 millionused a 2024 future test year in natural gas capital investments as improper and imprudent, providing a potential over-recovery of approximately $3 million in 2019. In August and December 2021, the ICC staff filed testimony that supports the prudence and reasonableness of the capital investments made during 2019. Ameren Illinois’ 2019 QIP rate recovery request under reviewthis proceeding. A decision by the ICC is within the rate increase limitations allowed by law. The ICC is under no deadline to issue an order in this proceeding.
Federal
Transmission Formula Rate Revisions
In February 2020, the MISO, on behalf of Ameren Missouri, Ameren Illinois, and ATXI, filed requestsproceeding is required by late November 2023, with the FERC to revise each company’s transmission formula rate calculations with respect to the calculation used for materials and supplies inventories included in rate base. In May 2020, the FERC issued orders approving the revisions prospectively. In addition, the FERC declined to order refunds for earlier periods, as requested by intervenors in Ameren Illinois’ filing, but directed its audit staff to review historical rate recovery in connection with an ongoing FERC audit. Separately, in March 2021, the FERC issued an order related to an intervenor challenge to Ameren Illinois’ 2020 transmission formula rate update. As a result of this order, in March 2021, Ameren Illinois recorded a regulatory liability of $9 million, largely as a reduction of electric operating revenues, to reflect expected refunds, including interest, primarily related to the historical rate recovery of materials and supplies inventories included in rate base. The refund amount was reflected innew rates as of January 2022 and will be refunded to customers by the end of 2022. Ameren Missouri, Ameren Illinois, and ATXI filed appeals of the FERC's May 2020 and March 2021 orders, and related FERC orders denying requests for rehearing, to the United States Court of Appeals for the District of Columbia Circuit. In January 2022, the appeals were consolidated by the court. The court is under no deadline to address the appeal. Regardless of the outcome of the appeal, the impact of the May 2020 and March 2021 orders is not expected to be materialeffective in early December 2023. Ameren Illinois cannot predict the level of any delivery service rate change the ICC may approve, nor whether any rate change that may eventually be approved will be sufficient to Ameren’s,enable Ameren Missouri’s, or Ameren Illinois’ results of operations, financial position, or liquidity.Illinois to recover its costs and to earn a reasonable return on investments when the rate changes go into effect.
Federal
FERC Complaint Cases
Since November 2013, the allowed base ROE for FERC-regulated transmission rate base under the MISO tariff has been subject to customer complaint cases and has been changed by various FERC orders. In May 2020, the FERC issued an order, which set the allowed base ROE to 10.02%, and required refunds, with interest, for the periods November 2013 to February 2015 and from late September 2016 forward. Ameren and Ameren Illinois paid these refunds, including interest, by March 31, 2022. In June 2020, various parties filed requests for rehearing with the FERC, challenging the new ROE methodology established by the May 2020 order. In July 2020, the FERC denied the rehearing requests without addressing the issues raised, and indicated it will address the requests for rehearing in a future order. Also in July 2020, Ameren Missouri, Ameren Illinois, and ATXI, filed an appeal of the May 2020 order toas well as various customers, petitioned the United States Court of Appeals for the District of Columbia Circuit for review of the May 2020 order, challenging certain aspects of the new ROE methodology established. The petition filed by Ameren Missouri, Ameren Illinois, and ATXI challenged the refunds required for the period from September 2016 to May 2020. In August 2022, the court issued a ruling that granted the customers’ petition for review, vacated the FERC’s previous MISO ROE-determining orders, and remanded the proceedings to the FERC. The court elected not to rule on the issues raised by Ameren Missouri, Ameren Illinois, and ATXI; however, they may raise the issues again in the future. The currently allowed base ROE of 10.02% will remain effective for customer billings, but is subject to refund if the base ROE is changed by the FERC in a future order. The FERC is under no deadline to addressissue an order related to these proceedings. A 50 basis point change in the appeal.
As of March 31, 2022, AmerenFERC-allowed ROE would affect Ameren’s and Ameren Illinois had paid the refunds, including interest, associated with the allowed base ROE setIllinois’ annual revenue by the May 2020 order.an estimated $19 million and $13 million, respectively, based on each company’s 2023 projected rate base.
NOTE 3 – SHORT-TERM DEBT AND LIQUIDITY
The liquidity needs of the Ameren Companies are typically supported through the use of available cash, drawings under committed credit agreements, commercial paper issuances, and, in the case of Ameren Missouri and Ameren Illinois, short-term affiliate borrowings. See Note 4 – Short-term Debt and Liquidity under Part II, Item 8, in the Form 10-K for a description of our indebtedness provisions and other covenants as well as a description of money pool arrangements.
Short-term Borrowings
The Missouri Credit Agreement and the Illinois Credit Agreement are available to support issuances under Ameren (parent)’s, Ameren Missouri’s, and Ameren Illinois’ commercial paper programs, respectively, subject to borrowing sublimits, and the issuance of letters of credit. As of March 31, 2022,2023, based on commercial paper outstanding and letters of credit issued under the Credit Agreements, along with cash and cash equivalents, the net liquidity available to Ameren (parent), Ameren Missouri, and Ameren Illinois, collectively, was $1.2$1.4 billion. The Ameren Companies were in compliance with the covenants in their Credit Agreements as of March 31, 2022.2023. As of March 31, 2022,2023, the ratios of consolidated indebtedness to consolidated total capitalization, calculated in accordance with the provisions of the Credit Agreements, were 59%, 50%51%, and 44%45% for Ameren, Ameren Missouri, and Ameren Illinois, respectively.
The following table presents commercial paper outstanding, net of issuance discounts, as of March 31, 2022,2023, and December 31, 2021.2022. There were no borrowings outstanding under the Credit Agreements as of March 31, 2022,2023, or December 31, 2021.2022.
| | | March 31, 2022 | | December 31, 2021 | | March 31, 2023 | | December 31, 2022 |
| Ameren (parent) | Ameren (parent) | $ | 466 | | | $ | 277 | | Ameren (parent) | $ | 727 | | | $ | 477 | |
| Ameren Missouri | Ameren Missouri | 528 | | | 165 | | Ameren Missouri | 197 | | | 329 | |
| Ameren Illinois | Ameren Illinois | 107 | | | 103 | | Ameren Illinois | 324 | | | 264 | |
| Ameren consolidated | Ameren consolidated | $ | 1,101 | | | $ | 545 | | Ameren consolidated | $ | 1,248 | | | $ | 1,070 | |
The following table summarizes the activity and relevant interest rates for Ameren (parent)’s, Ameren Missouri’s, and Ameren Illinois’ commercial paper issuances and borrowings under the Credit Agreements in the aggregate for the three months ended March 31, 20222023 and 2021:2022:
| | | Ameren
(parent) | | Ameren
Missouri | | Ameren
Illinois | | Ameren
Consolidated | | | Ameren
(parent) | | Ameren
Missouri | | Ameren
Illinois | | Ameren
Consolidated | |
| 2023 | | 2023 | |
| Average daily amount outstanding | | Average daily amount outstanding | | $ | 506 | | | $ | 436 | | | $ | 233 | | | $ | 1,175 | | |
| | Weighted-average interest rate | | Weighted-average interest rate | | 4.89 | % | | 4.86 | % | | 4.89 | % | | 4.88 | % | |
Peak amount outstanding during period(a) | | Peak amount outstanding during period(a) | | $ | 728 | | | $ | 592 | | | $ | 325 | | | $ | 1,381 | | |
| Peak interest rate | | Peak interest rate | | 5.55 | % | | 5.55 | % | | 5.60 | % | | 5.60 | % | |
| 2022 | 2022 | | 2022 | |
| Average daily amount outstanding | Average daily amount outstanding | | $ | 282 | | | $ | 408 | | | $ | 99 | | | $ | 789 | | | Average daily amount outstanding | | $ | 282 | | | $ | 408 | | | $ | 99 | | | $ | 789 | | |
| | Weighted-average interest rate | Weighted-average interest rate | | 0.41 | % | | 0.44 | % | | 0.33 | % | | 0.41 | % | | Weighted-average interest rate | | 0.41 | % | | 0.44 | % | | 0.33 | % | | 0.41 | % | |
Peak amount outstanding during period(a) | Peak amount outstanding during period(a) | | $ | 466 | | | $ | 539 | | | $ | 142 | | | $ | 1,101 | | | Peak amount outstanding during period(a) | | $ | 466 | | | $ | 539 | | | $ | 142 | | | $ | 1,101 | | |
| Peak interest rate | Peak interest rate | | 1.05 | % | | 1.06 | % | | 1.15 | % | | 1.15 | % | | Peak interest rate | | 1.05 | % | | 1.06 | % | | 1.15 | % | | 1.15 | % | |
| 2021 | | |
| Average daily amount outstanding | | $ | 454 | | | $ | 99 | | | $ | 96 | | | $ | 649 | | | |
| | Weighted-average interest rate | | 0.25 | % | | 0.22 | % | | 0.21 | % | | 0.24 | % | | |
Peak amount outstanding during period(a) | | $ | 650 | | | $ | 206 | | | $ | 353 | | | $ | 916 | | | |
| Peak interest rate | | 0.33 | % | | 0.25 | % | | 0.25 | % | | 0.33 | % | | |
(a)The timing of peak outstanding commercial paper issuances and borrowings under the Credit Agreements varies by company. Therefore, the sum of individual company peak amounts may not equal the Ameren consolidated peak for the period.
Money Pools
Ameren has money pool agreements with and among its subsidiaries to coordinate and provide for certain short-term cash and working capital requirements. The average interest rate for borrowings under the utility money pool for the three months ended March 31, 2022,2023, was 0.39% (20214.80% (2022 – 0.22% ).0.39%). See Note 8 – Related-party Transactions for the amount of interest income and expense from the utility money pool arrangements recorded by Ameren Missouri and Ameren Illinois for the three months ended March 31, 20222023 and 2021.2022.
NOTE 4 – LONG-TERM DEBT AND EQUITY FINANCINGS
Ameren
For the three months ended March 31, 2022,2023, Ameren issued a total of 0.1 million shares of common stock under its DRPlus and 401(k) plan, and received proceeds of $5 million and had a receivable of $8$7 million. In addition, in the first quarter of 2022,2023, Ameren issued 0.40.5 million shares of common stock valued at $31$37 million upon the settlement of stock-based compensation awards.
In May 2021, Ameren entered into an equity distribution sales agreement pursuant to which Ameren may offer and sell from time to time up to $750 million of its common stock through an ATM program, which includes the ability to enter into forward sales agreements. There were no shares issued under the ATM program for the three months ended March 31, 2022.2023. As of March 31, 2022,2023, Ameren had approximately $320$980 million of common stock available to issuefor sale under the ATM program, which takes into account the forward sale agreements in effect as of March 31, 2022,2023, discussed below.
As of April 30, 2023, Ameren has entered intohad multiple forward sale agreements including the April 2022 forward sale agreement discussed below,that could be settled under the ATM program with various counterparties relating to 3.43.8 million shares of common stock. Ameren expects to settle the forward sale agreements by December 31, 2022.
Related to theThe forward sale agreements outstanding as of March 31, 2022, these agreements2023, can be settled at Ameren’s discretion on or prior to dates ranging from MayJanuary 10, 2024 to October 3, 2023 to September 30, 2023.2024. On a settlement date or dates, if Ameren elects to physically settle thea forward sale agreement, Ameren will issue shares of common stock to the counterparties at the then-applicable forward sale price. The initial forward sale price for the agreements ranged from $86.35$89.31 to $88.81$94.80, with a weightedan average initial forward sale price of $87.61.$92.66. Each initial forward sale price is subject to adjustment based on a floating interest rate factor equal to the overnight bank funding rate less a spread of 75 basis points, and will be subject to decrease on certain dates specified in the forward sale agreements by specified amounts related to expected dividends on shares of the common stock during the term of the forward sale agreements. If the overnight bank funding rate is less than the spread on any day, the interest rate factor will result in a reduction of the forward sale price. The forward sale agreements will be physically
settled unless Ameren elects to settle in cash or to net share settle. At March 31, 2022,2023, Ameren could have settled the forward sale agreements with physical delivery of 3.23.4 million shares of common stock to the respective counterparties in exchange for cash of $276$317 million. TheAlternatively, the forward sale agreements could have also been settled at March 31, 2022,2023, with delivery ofthe counterparties delivering approximately $21 million of cash or approximately 0.2 million shares of common stock to the counterparties.Ameren. In connection towith the forward sale agreements, the various counterparties, or their affiliates, borrowed from third parties and sold 3.23.4 million shares of common stock. The gross sales price of these
shares totaled $280$321 million. In connection with such sales, the counterparties were deemed to have received commissions of $3 million. Ameren has not received any proceeds from such sales of borrowed shares. The forward sale agreements have been classified as equity transactions.
In April 2022,2023, Ameren entered into a forward sale agreement under the ATM program relating to 0.20.4 million shares of common stock. The April 20222023 forward sale agreement can be settled at Ameren’s discretion on or prior to September 30, 2023.January 14, 2025. The initial forward sale price was initially $91.41 for the April 2022 forward sale agreement.$89.11.
Ameren Missouri
In April 2022,January 2023, Ameren Missouri and Audrain County mutually agreed to terminate a financing obligation agreement related to the CT energy center in Audrain County, which was scheduled to expire in December 2023. No cash was exchanged in connection with the termination of the agreement as the $240 million principal amount of the financing obligation due from Ameren Missouri was equal to the amount of bond service payments due to Ameren Missouri. Ownership of the energy center was transferred to Ameren Missouri in January 2023, at which time the property, plant, and equipment became subject to the lien of the Ameren Missouri mortgage bond indenture.
In March 2023, Ameren Missouri issued $525$500 million of 3.90%5.45% first mortgage bonds due April 2052,March 2053, with interest payable semiannually on April 1March 15 and October 1September 15 of each year, beginning October 1, 2022.September 15, 2023. Ameren Missouri received net proceeds of $519$495 million, which were used to repay short-term debt and for near-term capital expenditures. Ameren Missouri intends to allocate an amount equal to the net proceeds to sustainability projects meeting certain eligibility criteria.
ATXI
In November 2021, pursuant to a note purchase agreement, ATXI agreed to issue $95 million of its 2.96% senior unsecured notes due 2052, with interest payable semiannually on February 25 and August 25 of each year, beginning February 25, 2023, through a private placement offering exempt from registration under the Securities Act of 1933, as amended. ATXI expects to issue the notes and receive net proceeds of $95 million in August 2022, which will be used to refinance the remaining portion of an intercompany long-term note with Ameren (parent), repay a $50 million principal payment of its 3.43% senior unsecured notes,expenditures and to repay short-term debt.
Indenture Provisions and Other Covenants
See Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, in the Form 10-K for a description of our indenture provisions and other covenants, as well as restrictions on the payment of dividends. At March 31, 2022,2023, the Ameren Companies were in compliance with the provisions and covenants contained in their indentures and articles of incorporation, as applicable, and ATXI was in compliance with the provisions and covenants contained in its note purchase agreements.
Off-balance-sheet Arrangements
At March 31, 2022,2023, none of the Ameren Companies had any significantmaterial off-balance-sheet financing arrangements, other than Ameren’s investment in variable interest entities and the multiple forward sale agreements under the ATM program relating to common stock. See Note 1 – Summary of Significant Accounting Policies for further detail concerning variable interest entities.
NOTE 5 – OTHER INCOME, NET
The following table presents the components of “Other Income, Net” in the Ameren Companies’ statements of income for the three months ended March 31, 20222023 and 2021:2022:
| | | | Three Months | | | | Three Months | |
| | | 2022 | | 2021 | | | | 2023 | | 2022 | |
| Ameren: | Ameren: | | | Ameren: | | |
| | Allowance for equity funds used during construction | Allowance for equity funds used during construction | | $ | 8 | | | $ | 7 | | | Allowance for equity funds used during construction | | $ | 9 | | | $ | 8 | | |
| Interest income on industrial development revenue bonds | Interest income on industrial development revenue bonds | | 6 | | | 6 | | | Interest income on industrial development revenue bonds | | 1 | | | 6 | | |
| Non-service cost components of net periodic benefit income(a) | Non-service cost components of net periodic benefit income(a) | | 46 | | | 34 | | | Non-service cost components of net periodic benefit income(a) | | 64 | | | 46 | | |
| Miscellaneous income | Miscellaneous income | | 7 | | | 5 | | | Miscellaneous income | | 9 | | | 4 | | |
| Earnings related to equity method investments | | Earnings related to equity method investments | | 2 | | | 3 | | |
| Donations | Donations | | (2) | | | (3) | | | Donations | | (2) | | | (2) | | |
| Miscellaneous expense | Miscellaneous expense | | (5) | | | (3) | | | Miscellaneous expense | | (5) | | | (5) | | |
| Total Other Income, Net | Total Other Income, Net | | $ | 60 | | | $ | 46 | | | Total Other Income, Net | | $ | 78 | | | $ | 60 | | |
| Ameren Missouri: | Ameren Missouri: | | | Ameren Missouri: | | |
| | Allowance for equity funds used during construction | Allowance for equity funds used during construction | | $ | 4 | | | $ | 4 | | | Allowance for equity funds used during construction | | $ | 4 | | | $ | 4 | | |
| Interest income on industrial development revenue bonds | Interest income on industrial development revenue bonds | | 6 | | | 6 | | | Interest income on industrial development revenue bonds | | 1 | | | 6 | | |
| Non-service cost components of net periodic benefit income(a) | Non-service cost components of net periodic benefit income(a) | | 14 | | | 14 | | | Non-service cost components of net periodic benefit income(a) | | 14 | | | 14 | | |
| Miscellaneous income | Miscellaneous income | | 2 | | | 1 | | | Miscellaneous income | | 4 | | | 2 | | |
| Donations | Donations | | (1) | | | — | | | Donations | | (1) | | | (1) | | |
| Miscellaneous expense | Miscellaneous expense | | (2) | | | (2) | | | Miscellaneous expense | | (3) | | | (2) | | |
| Total Other Income, Net | Total Other Income, Net | | $ | 23 | | | $ | 23 | | | Total Other Income, Net | | $ | 19 | | | $ | 23 | | |
| Ameren Illinois: | Ameren Illinois: | | | Ameren Illinois: | | |
| | Allowance for equity funds used during construction | Allowance for equity funds used during construction | | $ | 4 | | | $ | 3 | | | Allowance for equity funds used during construction | | $ | 4 | | | $ | 4 | | |
| | Non-service cost components of net periodic benefit income | Non-service cost components of net periodic benefit income | | 21 | | | 14 | | | Non-service cost components of net periodic benefit income | | 31 | | | 21 | | |
| Miscellaneous income | Miscellaneous income | | 2 | | | 1 | | | Miscellaneous income | | 5 | | | 2 | | |
| Donations | Donations | | (1) | | | (3) | | | Donations | | (1) | | | (1) | | |
| Miscellaneous expense | Miscellaneous expense | | (2) | | | (1) | | | Miscellaneous expense | | (2) | | | (2) | | |
| Total Other Income, Net | Total Other Income, Net | | $ | 24 | | | $ | 14 | | | Total Other Income, Net | | $ | 37 | | | $ | 24 | | |
(a)For the three months ended March 31, 20222023 and 2021,2022, the non-service cost components of net periodic benefit income were adjusted by amounts deferred of $6$17 million and less than $(1)$6 million, respectively, due to a regulatory tracking mechanism for the difference between the level of such costs incurred by Ameren Missouri under GAAP and the level of such costs included in rates. See Note 11– Retirement Benefits for additional information.
NOTE 6 – DERIVATIVE FINANCIAL INSTRUMENTS
We use derivatives to manage the risk of changes in market prices for natural gas, power, and uranium, as well as the risk of changes in rail transportation surcharges through fuel oil hedges. Such price fluctuations may cause the following:
•an unrealized appreciation or depreciation of our contracted commitments to purchase or sell when purchase or sale prices under the commitments are compared with current commodity prices;
•market values of natural gas and uranium inventories that differ from the cost of those commodities in inventory;
•actual cash outlays for the purchase of these commodities that differ from anticipated cash outlays; and
•actual off-system sales revenues that differ from anticipated revenues.
The derivatives that we use to hedge these risks are governed by our risk management policies for forward contracts, futures, options, and swaps. Our net positions are continually assessed within our structured hedging programs to determine whether new or offsetting transactions are required. The goal of the hedging program is generally to mitigate financial risks while ensuring that sufficient volumes are available to meet our requirements. Contracts we enter into as part of our risk management program may be settled financially, settled by physical delivery, or net settled with the counterparty.
All contracts considered to be derivative instruments are required to be recorded on the balance sheet at their fair values, unless the NPNS exception applies. Many of our physical contracts, such as our purchased power contracts, qualify for the NPNS exception to derivative accounting rules. The revenue or expense on NPNS contracts is recognized at the contract price upon physical delivery. The following disclosures exclude NPNS contracts and other non-derivative commodity contracts that are accounted for under the accrual method of accounting.
If we determine that a contract meets the definition of a derivative and is not eligible for the NPNS exception, we review the contract to determine whether the resulting gains or losses qualify for regulatory deferral. Derivative contracts that qualify for regulatory deferral are
recorded at fair value, with changes in fair value recorded as regulatory assets or liabilities in the period in which the change occurs. We
believe derivative losses and gains deferred as regulatory assets and liabilities are probable of recovery, or refund, through future rates charged to customers. Regulatory assets and liabilities are amortized to operating income as related losses and gains are reflected in rates charged to customers. Therefore, gains and losses on these derivatives have no effect on operating income. As of March 31, 2022,2023, and December 31, 2021,2022, all contracts that met the definition of a derivative and were not eligible for the NPNS exception received regulatory deferral. Cash flows for all derivative financial instruments are classified in cash flows from operating activities.
The following table presents open gross commodity contract volumes by commodity type for derivative assets and liabilities as of March 31, 2022,2023, and December 31, 2021.2022. As of March 31, 2022,2023, these contracts extended through October 2024,2025, October 2027,2029, May 2032 and March 2024 for fuel oils, natural gas, power and uranium, respectively.
| | | Quantity (in millions) | | Quantity (in millions) |
| | March 31, 2022 | December 31, 2021 | | March 31, 2023 | December 31, 2022 |
| Commodity | Commodity | Ameren Missouri | Ameren Illinois | Ameren | Ameren Missouri | Ameren Illinois | Ameren | Commodity | Ameren Missouri | Ameren Illinois | Ameren | Ameren Missouri | Ameren Illinois | Ameren |
| Fuel oils (in gallons) | Fuel oils (in gallons) | 25 | | — | | 25 | | 30 | | — | | 30 | | Fuel oils (in gallons) | 18 | | — | | 18 | | 18 | | — | | 18 | |
| Natural gas (in mmbtu) | Natural gas (in mmbtu) | 36 | | 146 | | 182 | | 35 | | 144 | | 179 | | Natural gas (in mmbtu) | 60 | | 185 | | 245 | | 48 | | 157 | | 205 | |
| Power (in MWhs) | Power (in MWhs) | 4 | | 6 | | 10 | | 6 | | 6 | | 12 | | Power (in MWhs) | 1 | | 6 | | 7 | | 1 | | 6 | | 7 | |
| Uranium (pounds in thousands) | Uranium (pounds in thousands) | 496 | | — | | 496 | | 586 | | — | | 586 | | Uranium (pounds in thousands) | 186 | | — | | 186 | | 514 | | — | | 514 | |
The following table presents the carrying value and balance sheet location of all derivative commodity contracts, none of which were designated as hedging instruments, as of March 31, 2022,2023, and December 31, 2021:2022:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | March 31, 2022 | December 31, 2021 |
| Balance Sheet Location | | Ameren
Missouri | | | Ameren
Illinois | | | Ameren | | | | Ameren
Missouri | | | Ameren
Illinois | | | Ameren |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Fuel oils | Mark-to-market derivative assets | $ | (a) | | $ | — | | | $ | 18 | | | | $ | (a) | | $ | — | | | $ | 8 | |
| | | | | | | | | | | | | | | | | | | |
| Other current assets | | 18 | | | | — | | | | — | | | | | 8 | | | | — | | | | — | |
| Other assets | | 8 | | | | — | | | | 8 | | | | | 5 | | | | — | | | | 5 | |
| Natural gas | Mark-to-market derivative assets | | (a) | | | 74 | | | | 90 | | | | | (a) | | | 28 | | | | 35 | |
| | | | | | | | | | | | | | | | | | | |
| Other current assets | | 16 | | | | — | | | | — | | | | | 7 | | | | — | | | | — | |
| Other assets | | 10 | | | | 23 | | | | 33 | | | | | 5 | | | | 13 | | | | 18 | |
| Power | Mark-to-market derivative assets | | (a) | | | 5 | | | | 24 | | | | | (a) | | | — | | | | 23 | |
| | | | | | | | | | | | | | | | | | | |
| Other current assets | | 19 | | | | — | | | | — | | | | | 23 | | | | — | | | | — | |
| Other assets | | — | | | | — | | | | — | | | | | — | | | | — | | | | — | |
| Uranium | Mark-to-market derivative assets | | (a) | | | — | | | | 5 | | | | | (a) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | |
| Other current assets | | 5 | | | | — | | | | — | | | | | — | | | | — | | | | — | |
| Other assets | | 2 | | | | — | | | | 2 | | | | | 1 | | | | — | | | | 1 | |
| Total assets | $ | 78 | | | $ | 102 | | | $ | 180 | | | | $ | 49 | | | $ | 41 | | | $ | 90 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Natural gas | Mark-to-market derivative liabilities | | — | | | | (a) | | | (a) | | | | 2 | | | | (a) | | | (a) |
| | | | | | | | | | | | | | | | | | | |
| Other current liabilities | | — | | | | 2 | | | | 2 | | | | | — | | | | 6 | | | | 8 | |
| Other deferred credits and liabilities | | 1 | | | | 1 | | | | 2 | | | | | 1 | | | | 2 | | | | 3 | |
| Power | Mark-to-market derivative liabilities | | 109 | | | | (a) | | | (a) | | | | 50 | | | | (a) | | | (a) |
| | | | | | | | | | | | | | | | | | | |
| Other current liabilities | | — | | | | 1 | | | | 110 | | | | | — | | | | 9 | | | | 59 | |
| Other deferred credits and liabilities | | 26 | | | | 78 | | | | 104 | | | | | 23 | | | | 108 | | | | 131 | |
| Uranium | Mark-to-market derivative liabilities | | — | | | | (a) | | | (a) | | | | 1 | | | | (a) | | | (a) |
| | | | | | | | | | | | | | | | | | | |
| Other current liabilities | | — | | | | — | | | | — | | | | | — | | | | — | | | | 1 | |
| | | | | | | | | | | | | | | | | | | |
| Total liabilities | $ | 136 | | | $ | 82 | | | $ | 218 | | | | $ | 77 | | | $ | 125 | | | $ | 202 | |
(a)Balance sheet line item not applicable to registrant. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | March 31, 2023 | December 31, 2022 |
| Balance Sheet Location | | Ameren
Missouri | | | Ameren
Illinois | | | Ameren | | | | Ameren
Missouri | | | Ameren
Illinois | | | Ameren |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Fuel oils | Other current assets | $ | 8 | | | $ | — | | | $ | 8 | | | | $ | 13 | | | $ | — | | | $ | 13 | |
| Other assets | | 2 | | | | — | | | | 2 | | | | | 3 | | | | — | | | | 3 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Natural gas | Other current assets | | 1 | | | | 5 | | | | 6 | | | | | 7 | | | | 23 | | | | 30 | |
| Other assets | | 8 | | | | 8 | | | | 16 | | | | | 9 | | | | 11 | | | | 20 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Power | Other current assets | | 5 | | | | — | | | | 5 | | | | | 14 | | | | 2 | | | | 16 | |
| Other assets | | — | | | | 1 | | | | 1 | | | | | — | | | | 4 | | | | 4 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Uranium | Other current assets | | 1 | | | | — | | | | 1 | | | | | 2 | | | | — | | | | 2 | |
| Other assets | | — | | | | — | | | | — | | | | | 1 | | | | — | | | | 1 | |
| Total assets | $ | 25 | | | $ | 14 | | | $ | 39 | | | | $ | 49 | | | $ | 40 | | | $ | 89 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Fuel oils | Other deferred credits and liabilities | $ | 1 | | | $ | — | | | $ | 1 | | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Natural gas | Other current liabilities | | 9 | | | | 33 | | | | 42 | | | | | 7 | | | | 20 | | | | 27 | |
| Other deferred credits and liabilities | | 5 | | | | 12 | | | | 17 | | | | | 2 | | | | 9 | | | | 11 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Power | Other current liabilities | | 17 | | | | 10 | | | | 27 | | | | | 59 | | | | 2 | | | | 61 | |
| Other deferred credits and liabilities | | — | | | | 43 | | | | 43 | | | | | — | | | | 37 | | | | 37 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Total liabilities | $ | 32 | | | $ | 98 | | | $ | 130 | | | | $ | 68 | | | $ | 68 | | | $ | 136 | |
We believe that entering into master netting arrangements or similar agreements mitigates the level of financial loss that could result from default by allowing net settlement of derivative assets and liabilities. These master netting arrangements allow the counterparties to net settle sale and purchase transactions. Further, collateral requirements are calculated at the master netting arrangement or similar agreement level by counterparty.
TheThe following table providesprovides the recognized gross derivative balances and the net amounts of those derivatives subject to an enforceable master netting arrangement or similar agreement as of March 31, 2022,2023, and December 31, 2021.2022:
| | | Gross Amounts Not Offset in the Balance Sheet | | | Gross Amounts Not Offset in the Balance Sheet | |
| Commodity Contracts Eligible to be Offset | Commodity Contracts Eligible to be Offset | | Gross Amounts Recognized in the Balance Sheet | | Derivative Instruments | | Cash Collateral Received/Posted(a) | | Net
Amount | Commodity Contracts Eligible to be Offset | | Gross Amounts Recognized in the Balance Sheet | | Derivative Instruments | | Cash Collateral Received/Posted(a) | | Net
Amount |
| 2022 | | |
| March 31, 2023 | | March 31, 2023 | |
| Assets: | Assets: | | Assets: | |
| Ameren Missouri | Ameren Missouri | | $ | 78 | | | $ | 19 | | | $ | 5 | | | $ | 54 | | Ameren Missouri | | $ | 25 | | | $ | 9 | | | $ | — | | | $ | 16 | |
| Ameren Illinois | Ameren Illinois | | 102 | | | 6 | | | 9 | | | 87 | | Ameren Illinois | | 14 | | | 11 | | | — | | | 3 | |
| Ameren | Ameren | | $ | 180 | | | $ | 25 | | | $ | 14 | | | $ | 141 | | Ameren | | $ | 39 | | | $ | 20 | | | $ | — | | | $ | 19 | |
| Liabilities: | Liabilities: | | Liabilities: | |
| Ameren Missouri | Ameren Missouri | | $ | 136 | | | $ | 19 | | | $ | 92 | | | $ | 25 | | Ameren Missouri | | $ | 32 | | | $ | 9 | | | $ | 16 | | | $ | 7 | |
| Ameren Illinois | Ameren Illinois | | 82 | | | 6 | | | — | | | 76 | | Ameren Illinois | | 98 | | | 11 | | | — | | | 87 | |
| Ameren | Ameren | | $ | 218 | | | $ | 25 | | | $ | 92 | | | $ | 101 | | Ameren | | $ | 130 | | | $ | 20 | | | $ | 16 | | | $ | 94 | |
| 2021 | | |
| December 31, 2022 | | December 31, 2022 | |
| Assets: | Assets: | | Assets: | |
| Ameren Missouri | Ameren Missouri | | $ | 49 | | | $ | 15 | | | $ | — | | | $ | 34 | | Ameren Missouri | | $ | 49 | | | $ | 9 | | | $ | — | | | $ | 40 | |
| Ameren Illinois | Ameren Illinois | | 41 | | | 4 | | | — | | | 37 | | Ameren Illinois | | 40 | | | 20 | | | — | | | 20 | |
| Ameren | Ameren | | $ | 90 | | | $ | 19 | | | $ | — | | | $ | 71 | | Ameren | | $ | 89 | | | $ | 29 | | | $ | — | | | $ | 60 | |
| Liabilities: | Liabilities: | | Liabilities: | |
| Ameren Missouri | Ameren Missouri | | $ | 77 | | | $ | 15 | | | $ | 47 | | | $ | 15 | | Ameren Missouri | | $ | 68 | | | $ | 9 | | | $ | 56 | | | $ | 3 | |
| Ameren Illinois | Ameren Illinois | | 125 | | | 4 | | | — | | | 121 | | Ameren Illinois | | 68 | | | 20 | | | — | | | 48 | |
| Ameren | Ameren | | $ | 202 | | | $ | 19 | | | $ | 47 | | | $ | 136 | | Ameren | | $ | 136 | | | $ | 29 | | | $ | 56 | | | $ | 51 | |
| |
(a)Cash collateral received reduces gross asset balances and is included in “Other current liabilities” and “Other deferred credits and liabilities” on the balance sheet. Cash collateral posted reduces gross liability balances and is included in “Other current“Current collateral assets” and “Other assets” on the balance sheet.sheet for Ameren and Ameren Missouri and “Other current assets” and “Other assets” for Ameren Illinois.
Credit Risk
In determining our concentrations of credit risk related to derivative instruments, we review our individual counterparties and categorize each counterparty into groupings according to the primary business in which each engages. As of March 31, 2022,2023, if counterparty groups were to fail completely to perform on contracts, the Ameren Ameren Missouri, and Ameren Illinois'Companies’ maximum exposure related to derivative assets, predominantly from financial institutions, was $176 million, $79 million, and $97 million, respectively. The potential loss on counterparty exposures may be reducedwould have been immaterial with or eliminated by the application of master netting arrangements or similar agreements and collateral held. As of March 31, 2022, the potential loss afterwithout consideration of the application of master netting arrangements or similar agreements and collateral held for Ameren, Ameren Missouri, and Ameren Illinois was $144 million, $56 million, and $88 million, respectively.held.
Certain of our derivative instruments contain collateral provisions tied to the Ameren Companies’ credit ratings. If our credit ratings were downgraded below investment grade, or if a counterparty with reasonable grounds for uncertainty regarding our ability to satisfy an obligation requested adequate assurance of performance, additional collateral postings might be required. The additional collateral required is the net liability position allowed under master netting arrangements or similar agreements, assuming (1) the credit risk-related contingent features underlying these arrangements were triggered and (2) those counterparties with rights to do so requested collateral. The following table presents, as of March 31, 2022,2023, the aggregate fair value of all derivative instruments with credit risk-related contingent features in a gross liability position, the cash collateral posted, and the aggregate amount of additional collateral that counterparties could require.require:
| | | | Aggregate Fair Value of Derivative Liabilities(a) | | Cash
Collateral Posted | | Potential Aggregate Amount of Additional Collateral Required(b) | | Aggregate Fair Value of Derivative Liabilities(a) | | Cash
Collateral Posted | | Potential Aggregate Amount of Additional Collateral Required(b) |
| Ameren Missouri | Ameren Missouri | $ | 36 | | | $ | 18 | | | $ | 7 | | Ameren Missouri | $ | 16 | | | $ | — | | | $ | 7 | |
| Ameren Illinois | Ameren Illinois | 4 | | | — | | | 4 | | Ameren Illinois | 45 | | | — | | | 36 | |
| Ameren | Ameren | $ | 40 | | | $ | 18 | | | $ | 11 | | Ameren | $ | 61 | | | $ | — | | | $ | 43 | |
(a)Before consideration of master netting arrangements or similar agreements.
(b)As collateral requirements with certain counterparties are based on master netting arrangements or similar agreements, the aggregate amount of additional collateral required to be posted is determined after consideration of the effects of such arrangements.
NOTE 7 – FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurements are classified in three levels based on the fair value hierarchy as defined by GAAP. See Note 8 – Fair Value Measurements under Part II, Item 8, of the Form 10-K for information related to hierarchy levels and valuation techniques.
We consider nonperformance risk in our valuation of derivative instruments by analyzing our own credit standing and the credit standing of our counterparties, and by considering any credit enhancements (e.g., collateral). Included in our valuation, and based on current market conditions, is a valuation adjustment for counterparty default derived from market data such as the price of credit default swaps, bond yields, and credit ratings. No material gains or losses related to valuation adjustments for counterparty default risk were recorded at Ameren, Ameren Missouri, or Ameren Illinois in the three months ended March 31, 20222023 or 2021.2022. At March 31, 2022,2023, and December 31, 2021,2022, the counterparty default risk valuation adjustment related to derivative contracts was immaterial for Ameren, Ameren Missouri, and Ameren Illinois.
The following table sets forth, by level within the fair value hierarchy, our assets and liabilities measured at fair value on a recurring basis as of March 31, 2022,2023, and December 31, 2021:2022:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | March 31, 2022 | | | December 31, 2021 | |
| | Level 1 | Level 2 | Level 3 | Total | | | Level 1 | Level 2 | Level 3 | Total | |
| Assets: | | | | | | | | | | | |
| Ameren Missouri | | | | | | | | | | | |
| Derivative assets – commodity contracts: | | | | | | | | | | | |
| Fuel oils | $ | 24 | | $ | — | | $ | 2 | | $ | 26 | | | | $ | 13 | | $ | — | | $ | — | | $ | 13 | | |
| Natural gas | — | | 26 | | — | | 26 | | | | — | | 12 | | — | | 12 | | |
| Power | 18 | | — | | 1 | | 19 | | | | 10 | | — | | 13 | | 23 | | |
| Uranium | — | | — | | 7 | | 7 | | | | — | | — | | 1 | | 1 | | |
| Total derivative assets – commodity contracts | $ | 42 | | $ | 26 | | $ | 10 | | $ | 78 | | | | $ | 23 | | $ | 12 | | $ | 14 | | $ | 49 | | |
| Nuclear decommissioning trust fund: | | | | | | | | | | | |
| | | | | | | | | | | | |
| Equity securities: | | | | | | | | | | | |
| U.S. large capitalization | $ | 719 | | $ | — | | $ | — | | $ | 719 | | | | $ | 824 | | $ | — | | $ | — | | $ | 824 | | |
| Debt securities: | | | | | | | | | | | |
| U.S. Treasury and agency securities | — | | 174 | | — | | 174 | | | | — | | 141 | | — | | 141 | | |
| Corporate bonds | — | | 133 | | — | | 133 | | | | — | | 131 | | — | | 131 | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Other | — | | 61 | | — | | 61 | | | | — | | 56 | | — | | 56 | | |
| Total nuclear decommissioning trust fund | $ | 719 | | $ | 368 | | $ | — | | $ | 1,087 | | (a) | | $ | 824 | | $ | 328 | | $ | — | | $ | 1,152 | | (a) |
| Total Ameren Missouri | $ | 761 | | $ | 394 | | $ | 10 | | $ | 1,165 | | | | $ | 847 | | $ | 340 | | $ | 14 | | $ | 1,201 | | |
| Ameren Illinois | | | | | | | | | | | |
| Derivative assets – commodity contracts: | | | | | | | | | | | |
| Natural gas | $ | 7 | | $ | 77 | | $ | 13 | | $ | 97 | | | | $ | 1 | | $ | 33 | | $ | 7 | | $ | 41 | | |
| Power | — | | — | | 5 | | 5 | | | | — | | — | | — | | — | | |
| Total Ameren Illinois | $ | 7 | | $ | 77 | | $ | 18 | | $ | 102 | | | | $ | 1 | | $ | 33 | | $ | 7 | | $ | 41 | | |
| Ameren | | | | | | | | | | | |
| Derivative assets – commodity contracts(b) | $ | 49 | | $ | 103 | | $ | 28 | | $ | 180 | | | | $ | 24 | | $ | 45 | | $ | 21 | | $ | 90 | | |
| Nuclear decommissioning trust fund(c) | 719 | | 368 | | — | | 1,087 | | (a) | | 824 | | 328 | | — | | 1,152 | | (a) |
| Total Ameren | $ | 768 | | $ | 471 | | $ | 28 | | $ | 1,267 | | | | $ | 848 | | $ | 373 | | $ | 21 | | $ | 1,242 | | |
| Liabilities: | | | | | | | | | | | |
| Ameren Missouri | | | | | | | | | | | |
| Derivative liabilities – commodity contracts: | | | | | | | | | | | |
| | | | | | | | | | | | |
| Natural gas | $ | — | | $ | 1 | | $ | — | | $ | 1 | | | | $ | — | | $ | 2 | | $ | 1 | | $ | 3 | | |
| Power | 81 | | — | | 54 | | 135 | | | | 45 | | — | | 28 | | 73 | | |
| Uranium | — | | — | | — | | — | | | | — | | — | | 1 | | 1 | | |
| Total Ameren Missouri | $ | 81 | | $ | 1 | | $ | 54 | | $ | 136 | | | | $ | 45 | | $ | 2 | | $ | 30 | | $ | 77 | | |
| | | | March 31, 2023 | | | December 31, 2022 | |
| | | Level 1 | Level 2 | Level 3 | Total | | | Level 1 | Level 2 | Level 3 | Total | |
| Assets: | | Assets: | | | |
| Ameren Missouri | | Ameren Missouri | | | |
| | | Derivative assets – commodity contracts: | | | |
| | | Fuel oils | $ | 10 | | $ | — | | $ | — | | $ | 10 | | | | $ | 16 | | $ | — | | $ | — | | $ | 16 | | |
| | | Natural gas | — | | 9 | | — | | 9 | | | | 1 | | 15 | | — | | 16 | | |
| | | Power | — | | — | | 5 | | 5 | | | | — | | — | | 14 | | 14 | | |
| | | Uranium | — | | — | | 1 | | 1 | | | | — | | — | | 3 | | 3 | | |
| | | Total derivative assets – commodity contracts | $ | 10 | | $ | 9 | | $ | 6 | | $ | 25 | | | | $ | 17 | | $ | 15 | | $ | 17 | | $ | 49 | | |
| | | Nuclear decommissioning trust fund: | | | |
| | | | Equity securities: | | | |
| | | U.S. large capitalization | $ | 668 | | $ | — | | $ | — | | $ | 668 | | | | $ | 618 | | $ | — | | $ | — | | $ | 618 | | |
| | | Debt securities: | | | |
| | | U.S. Treasury and agency securities | — | | 149 | | — | | 149 | | | | — | | 137 | | — | | 137 | | |
| | | Corporate bonds | — | | 123 | | — | | 123 | | | | — | | 122 | | — | | 122 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other | — | | 74 | | — | | 74 | | | | — | | 70 | | — | | 70 | | |
| | March 31, 2022 | | | December 31, 2021 | | | Total nuclear decommissioning trust fund | $ | 668 | | $ | 346 | | $ | — | | $ | 1,014 | | (a) | | $ | 618 | | $ | 329 | | $ | — | | $ | 947 | | (a) |
| | Level 1 | Level 2 | Level 3 | Total | | | Level 1 | Level 2 | Level 3 | Total | | | Total Ameren Missouri | $ | 678 | | $ | 355 | | $ | 6 | | $ | 1,039 | | | | $ | 635 | | $ | 344 | | $ | 17 | | $ | 996 | | |
| Ameren Illinois | Ameren Illinois | | | | Ameren Illinois | | | |
| | Derivative liabilities – commodity contracts: | | | | | Derivative assets – commodity contracts: | | | |
| | Natural gas | $ | — | | $ | 1 | | $ | 2 | | $ | 3 | | | | $ | — | | $ | 5 | | $ | 3 | | $ | 8 | | | | Natural gas | $ | — | | $ | 10 | | $ | 3 | | $ | 13 | | | | $ | 1 | | $ | 28 | | $ | 5 | | $ | 34 | | |
| | Power | — | | — | | 79 | | 79 | | | | — | | — | | 117 | | 117 | | | | Power | — | | — | | 1 | | 1 | | | | — | | — | | 6 | | 6 | | |
| | Total Ameren Illinois | $ | — | | $ | 1 | | $ | 81 | | $ | 82 | | | | $ | — | | $ | 5 | | $ | 120 | | $ | 125 | | | | Total Ameren Illinois | $ | — | | $ | 10 | | $ | 4 | | $ | 14 | | | | $ | 1 | | $ | 28 | | $ | 11 | | $ | 40 | | |
| Ameren | Ameren | | | | Ameren | | | |
| | Derivative liabilities – commodity contracts(b) | $ | 81 | | $ | 2 | | $ | 135 | | $ | 218 | | | | $ | 45 | | $ | 7 | | $ | 150 | | $ | 202 | | | | Derivative assets – commodity contracts(b) | $ | 10 | | $ | 19 | | $ | 10 | | $ | 39 | | | | $ | 18 | | $ | 43 | | $ | 28 | | $ | 89 | | |
| | | Nuclear decommissioning trust fund(c) | 668 | | 346 | | — | | 1,014 | | (a) | | 618 | | 329 | | — | | 947 | | (a) |
| | | Total Ameren | $ | 678 | | $ | 365 | | $ | 10 | | $ | 1,053 | | | | $ | 636 | | $ | 372 | | $ | 28 | | $ | 1,036 | | |
| Liabilities: | | Liabilities: | | | |
| Ameren Missouri | | Ameren Missouri | | | |
| | | Derivative liabilities – commodity contracts: | | | |
| | | Fuel oils | $ | 1 | | $ | — | | $ | — | | $ | 1 | | | | $ | — | | $ | — | | $ | — | | $ | — | | |
| | | Natural gas | — | | 11 | | 3 | | 14 | | | | — | | 6 | | 3 | | 9 | | |
| | | Power | 17 | | — | | — | | 17 | | | | 57 | | — | | 2 | | 59 | | |
| | | | Total Ameren Missouri | $ | 18 | | $ | 11 | | $ | 3 | | $ | 32 | | | | $ | 57 | | $ | 6 | | $ | 5 | | $ | 68 | | |
| Ameren Illinois | | Ameren Illinois | | | |
| | | Derivative liabilities – commodity contracts: | | | |
| | | Natural gas | $ | 1 | | $ | 36 | | $ | 8 | | $ | 45 | | | | $ | — | | $ | 19 | | $ | 10 | | $ | 29 | | |
| | | Power | — | | — | | 53 | | 53 | | | | — | | — | | 39 | | 39 | | |
| | | Total Ameren Illinois | $ | 1 | | $ | 36 | | $ | 61 | | $ | 98 | | | | $ | — | | $ | 19 | | $ | 49 | | $ | 68 | | |
| Ameren | | Ameren | | | |
| | | Derivative liabilities – commodity contracts(b) | $ | 19 | | $ | 47 | | $ | 64 | | $ | 130 | | | | $ | 57 | | $ | 25 | | $ | 54 | | $ | 136 | | |
(a)Balance excludes $7excludes $5 million and $11 million of cash and cash equivalents, receivables, payables, and accrued income, net, for both March 31, 2022,2023, and December 31, 2021.2022, respectively.
(b)See the Ameren Missouri and Ameren Illinois sections of the table for a breakout of the fair value of Ameren’s derivative assets and liabilities by type of commodity.
(c)See the Ameren Missouri section of the table for a breakout of the fair value of Ameren'sAmeren’s nuclear decommissioning trust fund by investment type.
Level 3 fuel oils, natural gas, and uranium derivative contract assets and liabilities measured at fair value on a recurring basis were immaterial for all periods presented. The following table presents the fair value reconciliation of Level 3 power derivative contract assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 20222023 and 2021:2022:
| | | 2022 | | | 2021 | | 2023 | | | 2022 |
| | Ameren Missouri | Ameren Illinois | | Ameren | | | Ameren Missouri | Ameren Illinois | Ameren | | Ameren Missouri | Ameren Illinois | | Ameren | | | Ameren Missouri | Ameren Illinois | Ameren |
| | For the three months ended March 31: | For the three months ended March 31: | | | | | | For the three months ended March 31: | | | | | |
| Beginning balance at January 1 | Beginning balance at January 1 | $ | (15) | | $ | (117) | | | $ | (132) | | | | $ | 2 | | $ | (198) | | $ | (196) | | Beginning balance at January 1 | $ | 12 | | $ | (33) | | | $ | (21) | | | | $ | (15) | | $ | (117) | | $ | (132) | |
| Realized and unrealized gains/(losses) included in regulatory assets/liabilities | Realized and unrealized gains/(losses) included in regulatory assets/liabilities | (41) | | 42 | | | 1 | | | | (5) | | 9 | | 4 | | Realized and unrealized gains/(losses) included in regulatory assets/liabilities | (6) | | (20) | | | (26) | | | | (41) | | 42 | | 1 | |
| | Settlements | Settlements | 3 | | 1 | | | 4 | | | | — | | 4 | | 4 | | Settlements | (1) | | 1 | | | — | | | | 3 | | 1 | | 4 | |
| | Ending balance at March 31 | Ending balance at March 31 | $ | (53) | | $ | (74) | | | $ | (127) | | | | $ | (3) | | $ | (185) | | $ | (188) | | Ending balance at March 31 | $ | 5 | | $ | (52) | | | $ | (47) | | | | $ | (53) | | $ | (74) | | $ | (127) | |
| Change in unrealized gains/(losses) related to assets/liabilities held at March 31 | Change in unrealized gains/(losses) related to assets/liabilities held at March 31 | $ | (38) | | $ | 42 | | | $ | 4 | | | | $ | (3) | | $ | 9 | | $ | 6 | | Change in unrealized gains/(losses) related to assets/liabilities held at March 31 | $ | (2) | | $ | (18) | | | $ | (20) | | | | $ | (38) | | $ | 42 | | $ | 4 | |
All gains or losses related to our Level 3 derivative commodity contracts are expected to be recovered or returned through customer rates; therefore, there is no impact to either net income or other comprehensive income resulting from changes in the fair value of these instruments.
The following table describes the valuation techniques and significant unobservable inputs utilized for the fair value of our Level 3 power derivative contract assets and liabilities as of March 31, 2022,2023, and December 31, 2021:2022:
| | | Fair Value | | Weighted Average(b) | | | Fair Value | | Weighted Average(b) | |
| | Commodity | | Assets | | Liabilities | Valuation Technique(s) | Unobservable Input(a) | Range | | | Commodity | | Assets | | Liabilities | Valuation Technique(s) | Unobservable Input(a) | Range | |
| | 2023 | | 2023 | Power(c) | $ | 6 | $ | (53) | Discounted cash flow | Average forward peak and off-peak pricing – forwards/swaps ($/MWh) | 22 – 74 | 46 | |
| | | | Nodal basis ($/MWh) | (9) – (1) | (4) | |
| | 2022 | 2022 | Power(c) | $ | 6 | $ | (133) | Discounted cash flow | Average forward peak and off-peak pricing – forwards/swaps ($/MWh) | 35 – 82 | 51 | | 2022 | Power(d) | $ | 20 | $ | (41) | Discounted cash flow | Average forward peak and off-peak pricing – forwards/swaps ($/MWh) | 38 – 89 | 51 | |
| | | Nodal basis ($/MWh) | (16) – 0 | (3) | | | Nodal basis ($/MWh) | (10) – (1) | (4) | |
| | | Trend rate (%) | (e) | (1) | | | Trend rate (%) | 0 – 1 | 0 | |
| | 2021 | Power(d) | $ | 13 | $ | (145) | Discounted cash flow | Average forward peak and off-peak pricing – forwards/swaps ($/MWh) | 32 – 55 | 40 | | |
| | Nodal basis ($/MWh) | (14) – 0 | (2) | | |
| | Trend rate (%) | (e) | 0 | | |
|
(a)Generally, significant increases (decreases) in these inputs in isolation would result in a significantly higher (lower) fair value measurement.
(b)Unobservable inputs were weighted by relative fair value.
(c)Valuations use visible forward prices adjusted for nodal-to-hub basis differentials.
(d)Valuations through 2031 use visible forward prices adjusted for nodal-to-hub basis differentials. Valuations beyond 2031 use a trend rate factor and are similarly adjusted for nodal-to-hub basis differentials.
(d)Valuations through 2029 use visible forward prices adjusted for nodal-to-hub basis differentials. Valuations beyond 2029 use a trend rate factor and are similarly adjusted for nodal-to-hub basis differentials.
(e)No meaningful range around weighted average.
The following table sets forth the carrying amount and, by level within the fair value hierarchy, the fair value of financial assets and liabilities disclosed, but not recorded, at fair value as of March 31, 2022,2023, and December 31, 2021:2022:
| | | Carrying
Amount | | Fair Value | | | Carrying
Amount | | Fair Value | |
| | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Total |
| | March 31, 2022 | | March 31, 2023 |
| Ameren: | Ameren: | | Ameren: | |
| Cash, cash equivalents, and restricted cash | Cash, cash equivalents, and restricted cash | $ | 154 | | | $ | 154 | | | $ | — | | | $ | — | | | $ | 154 | | Cash, cash equivalents, and restricted cash | $ | 237 | | | $ | 237 | | | $ | — | | | $ | — | | | $ | 237 | |
Investments in industrial development revenue bonds(a) | 248 | | | — | | | 248 | | | — | | | 248 | | |
| | Short-term debt | Short-term debt | 1,101 | | | — | | | 1,101 | | | — | | | 1,101 | | Short-term debt | 1,248 | | | — | | | 1,248 | | | — | | | 1,248 | |
Long-term debt (including current portion)(a) | 13,068 | | (b) | — | | | 12,615 | | | 526 | | (c) | 13,141 | | |
| Long-term debt (including current portion) | | Long-term debt (including current portion) | 14,281 | | (a) | — | | | 12,408 | | | 473 | | (b) | 12,881 | |
| Ameren Missouri: | Ameren Missouri: | | Ameren Missouri: | |
| Cash, cash equivalents, and restricted cash | Cash, cash equivalents, and restricted cash | $ | 9 | | | $ | 9 | | | $ | — | | | $ | — | | | $ | 9 | | Cash, cash equivalents, and restricted cash | $ | 11 | | | $ | 11 | | | $ | — | | | $ | — | | | $ | 11 | |
| Investments in industrial development revenue bonds(a) | 248 | | | — | | | 248 | | | — | | | 248 | | |
| | Short-term debt | Short-term debt | 528 | | | — | | | 528 | | | — | | | 528 | | Short-term debt | 197 | | | — | | | 197 | | | — | | | 197 | |
| Long-term debt (including current portion)(a) | 5,619 | | (b) | — | | | 5,701 | | | — | | | 5,701 | | |
| Long-term debt (including current portion) | | Long-term debt (including current portion) | 6,341 | | (a) | — | | | 5,706 | | | — | | | 5,706 | |
| Ameren Illinois: | Ameren Illinois: | | Ameren Illinois: | |
| Cash, cash equivalents, and restricted cash | Cash, cash equivalents, and restricted cash | $ | 137 | | | $ | 137 | | | $ | — | | | $ | — | | | $ | 137 | | Cash, cash equivalents, and restricted cash | $ | 217 | | | $ | 217 | | | $ | — | | | $ | — | | | $ | 217 | |
| | Short-term debt | Short-term debt | 107 | | | — | | | 107 | | | — | | | 107 | | Short-term debt | 324 | | | — | | | 324 | | | — | | | 324 | |
| | Long-term debt (including current portion) | Long-term debt (including current portion) | 4,393 | | (b) | — | | | 4,457 | | | — | | | 4,457 | | Long-term debt (including current portion) | 4,836 | | (a) | — | | | 4,368 | | | — | | | 4,368 | |
| | December 31, 2021 | | December 31, 2022 |
| Ameren: | Ameren: | | Ameren: | |
| Cash, cash equivalents, and restricted cash | Cash, cash equivalents, and restricted cash | $ | 155 | | | $ | 155 | | | $ | — | | | $ | — | | | $ | 155 | | Cash, cash equivalents, and restricted cash | $ | 216 | | | $ | 216 | | | $ | — | | | $ | — | | | $ | 216 | |
Investments in industrial development revenue bonds(a) | 248 | | | — | | | 248 | | | — | | | 248 | | |
Investment in industrial development revenue bonds(c) | | Investment in industrial development revenue bonds(c) | 240 | | | — | | | 240 | | | — | | | 240 | |
| Short-term debt | Short-term debt | 545 | | | — | | | 545 | | | — | | | 545 | | Short-term debt | 1,070 | | | — | | | 1,070 | | | — | | | 1,070 | |
Long-term debt (including current portion)(a) | 13,067 | | (b) | — | | | 13,930 | | | 591 | | (c) | 14,521 | | |
Long-term debt (including current portion)(c) | | Long-term debt (including current portion)(c) | 14,025 | | (a) | — | | | 11,989 | | | 464 | | (b) | 12,453 | |
| Ameren Missouri: | Ameren Missouri: | | Ameren Missouri: | |
| Cash, cash equivalents, and restricted cash | Cash, cash equivalents, and restricted cash | $ | 8 | | | $ | 8 | | | $ | — | | | $ | — | | | $ | 8 | | Cash, cash equivalents, and restricted cash | $ | 13 | | | $ | 13 | | | $ | — | | | $ | — | | | $ | 13 | |
| Investments in industrial development revenue bonds(a) | 248 | | | — | | | 248 | | | — | | | 248 | | |
Investment in industrial development revenue bonds(c) | | Investment in industrial development revenue bonds(c) | 240 | | | — | | | 240 | | | — | | | 240 | |
| Short-term debt | Short-term debt | 165 | | | — | | | 165 | | | — | | | 165 | | Short-term debt | 329 | | | — | | | 329 | | | — | | | 329 | |
Long-term debt (including current portion)(a) | 5,619 | | (b) | — | | | 6,321 | | | — | | | 6,321 | | |
Long-term debt (including current portion)(c) | | Long-term debt (including current portion)(c) | 6,086 | | (a) | — | | | 5,365 | | | — | | | 5,365 | |
| Ameren Illinois: | Ameren Illinois: | | Ameren Illinois: | |
| Cash, cash equivalents, and restricted cash | Cash, cash equivalents, and restricted cash | $ | 133 | | | $ | 133 | | | $ | — | | | $ | — | | | $ | 133 | | Cash, cash equivalents, and restricted cash | $ | 191 | | | $ | 191 | | | $ | — | | | $ | — | | | $ | 191 | |
| Short-term debt | Short-term debt | 103 | | | — | | | 103 | | | — | | | 103 | | Short-term debt | 264 | | | — | | | 264 | | | — | | | 264 | |
| | Long-term debt (including current portion) | Long-term debt (including current portion) | 4,392 | | (b) | — | | | 4,971 | | | — | | | 4,971 | | Long-term debt (including current portion) | 4,835 | | (a) | — | | | 4,320 | | | — | | | 4,320 | |
(a)Included unamortized debt issuance costs, which were excluded from the fair value measurement, of $103 million, $45 million, and $44 million for Ameren, Ameren Missouri, and Ameren Illinois, respectively, as of March 31, 2023. Included unamortized debt issuance costs, which were excluded from the fair value measurement, of $99 million, $41 million, and $44 million for Ameren, Ameren Missouri, and Ameren Illinois, respectively, as of December 31, 2022.
(b)The Level 3 fair value amount consists of ATXI’s senior unsecured notes.
(c)Ameren and Ameren Missouri have investmentshad an investment in industrial development revenue bonds, classified as held-to-maturity and recorded in “Other Assets,” that arewere equal to the finance obligationsobligation for the Peno Creek and Audrain CT energy centers.center. As of MarchDecember 31, 2022, and December 31, 2021, the carrying amount of both the investmentsinvestment in industrial development revenue bonds and the finance obligationsobligation approximated fair value.
(b)Included unamortized debt issuance costs, which were excluded from the fair value measurement, of $94 million, $38 million, and $38 million for Ameren, Ameren Missouri, and Ameren Illinois, respectively, as of March 31, 2022. Included unamortized debt issuance costs, which were excluded from the fair value measurement, of $94 million, $38 million, and $39 million for Ameren, Ameren Missouri, and Ameren Illinois, respectively, as of December 31, 2021.
(c)The Level 3 fair value amount consists of ATXI’s senior unsecured notes.
NOTE 8 – RELATED-PARTY TRANSACTIONS
In the ordinary course of business, Ameren Missouri and Ameren Illinois have engaged in, and may in the future engage in, affiliate transactions. These transactions primarily consist of natural gas and power purchases and sales, services received or rendered, and borrowings and lendings. Transactions between Ameren’s subsidiaries are reported as affiliate transactions on their individual financial statements, but those transactions are eliminated in consolidation for Ameren’s consolidated financial statements. For a discussion of material related-party agreements and money pool arrangements, see Note 13 – Related-party Transactions and Note 4 – Short-term Debt and Liquidity under Part II, Item 8, of the Form 10-K.
Support Services Agreements
At both March 31, 2022 and December 31, 2021, Ameren Missouri and Ameren Illinois had long-term receivables included in “Other assets” from Ameren Services of $77$36 million and $80$39 million, respectively, as of March 31, 2023, and $41 million and $43 million, respectively, as of December 31, 2022, related to Ameren Services’ allocated portion of Ameren’s pension and postretirement benefit plans.
Tax Allocation Agreement
See Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of the Form 10-K for a discussion of the tax allocation agreement. The following table presents the affiliate balances related to income taxes for Ameren Missouri and Ameren Illinois as of March 31, 2022,2023, and December 31, 2021:2022:
| | | | | | | | | | | | | | | | | | | | |
| March 31, 2022 | | | December 31, 2021 |
| Ameren Missouri | Ameren Illinois | | | Ameren Missouri | Ameren Illinois |
Income taxes payable to parent(a) | $ | — | | $ | 42 | | | | $ | — | | $ | 8 | |
Income taxes receivable from parent(b) | 33 | | — | | | | 27 | | 18 | |
| | | | | | | | | | | | | | | | | | | | |
| March 31, 2023 | | | December 31, 2022 |
| Ameren Missouri | Ameren Illinois | | | Ameren Missouri | Ameren Illinois |
Income taxes payable to parent(a) | $ | — | | $ | 80 | | | | $ | — | | $ | 50 | |
Income taxes receivable from parent(b) | 54 | | — | | | | 39 | | — | |
(a)Included in “Accounts payable – affiliates” on the balance sheet.
(b)Included in “Accounts receivable – affiliates” on the balance sheet.
Effects of Related-party Transactions on the Statement of Income
The following table presents the impact on Ameren Missouri and Ameren Illinois of related-party transactions for the three months ended March 31, 20222023 and 2021:2022:
| | | | | Three Months | | | | Three Months |
| Agreement | Agreement | Income Statement
Line Item | | | | Ameren
Missouri | | Ameren
Illinois | Agreement | Income Statement
Line Item | | | | Ameren
Missouri | | Ameren
Illinois |
| Ameren Missouri power supply | Ameren Missouri power supply | Operating Revenues | 2022 | | $ | 4 | | $ | (a) | Ameren Missouri power supply | Operating Revenues | 2023 | | $ | (b) | $ | (a) |
| agreements with Ameren Illinois | agreements with Ameren Illinois | | 2021 | | | 2 | | | (a) | agreements with Ameren Illinois | | 2022 | | | 4 | | | (a) |
| Ameren Missouri and Ameren Illinois | Ameren Missouri and Ameren Illinois | Operating Revenues | 2022 | | $ | 6 | | $ | (b) | Ameren Missouri and Ameren Illinois | Operating Revenues | 2023 | | $ | 10 | | $ | (b) |
| rent and facility services | rent and facility services | | 2021 | | | 7 | | | (b) | rent and facility services | | 2022 | | | 6 | | | (b) |
| Ameren Missouri and Ameren Illinois miscellaneous | Ameren Missouri and Ameren Illinois miscellaneous | Operating Revenues | 2022 | | $ | (b) | $ | 1 | | Ameren Missouri and Ameren Illinois miscellaneous | Operating Revenues | 2023 | | $ | (b) | $ | (b) |
| support services and other services provided to ATXI | | 2021 | | | (b) | | (b) | |
| support services | | support services | | 2022 | | | (b) | | 1 | |
| Total Operating Revenues | Total Operating Revenues | | 2022 | | $ | 10 | | $ | 1 | | Total Operating Revenues | | 2023 | | $ | 10 | | $ | (b) |
| | 2021 | | | 9 | | | (b) | | 2022 | | | 10 | | | 1 | |
| Ameren Illinois power supply | Ameren Illinois power supply | Purchased Power | 2022 | | $ | (a) | $ | 4 | | Ameren Illinois power supply | Purchased Power | 2023 | | $ | (a) | $ | (b) |
| agreements with Ameren Missouri | agreements with Ameren Missouri | | 2021 | | | (a) | | 2 | | agreements with Ameren Missouri | | 2022 | | | (a) | | 4 | |
| Ameren Missouri and Ameren Illinois | Ameren Missouri and Ameren Illinois | Purchased Power | 2022 | | $ | (b) | $ | (b) | Ameren Missouri and Ameren Illinois | Purchased Power | 2023 | | $ | (b) | $ | (b) |
| transmission services from ATXI | transmission services from ATXI | | 2021 | | | 1 | | | (b) | transmission services from ATXI | | 2022 | | | (b) | | (b) |
| Total Purchased Power | Total Purchased Power | | 2022 | | $ | (b) | $ | 4 | | Total Purchased Power | | 2023 | | $ | (b) | $ | (b) |
| | 2021 | | | 1 | | | 2 | | | 2022 | | | (b) | | 4 | |
| Ameren Missouri and Ameren Illinois | Ameren Missouri and Ameren Illinois | Other Operations and Maintenance | 2022 | | $ | (b) | $ | 1 | | Ameren Missouri and Ameren Illinois | Other Operations and Maintenance | 2023 | | $ | (b) | $ | 2 | |
| rent and facility services | rent and facility services | | 2021 | | | (b) | | 1 | | rent and facility services | | 2022 | | | (b) | | 1 | |
| Ameren Services support services | Ameren Services support services | Other Operations and Maintenance | 2022 | | $ | 38 | | $ | 35 | | Ameren Services support services | Other Operations and Maintenance | 2023 | | $ | 35 | | $ | 35 | |
| agreement | agreement | | 2021 | | | 35 | | | 33 | | agreement | | 2022 | | | 38 | | | 35 | |
| Total Other Operations and | Total Other Operations and | | 2022 | | $ | 38 | | $ | 36 | | Total Other Operations and | | 2023 | | $ | 35 | | $ | 37 | |
| Maintenance | Maintenance | | 2021 | | | 35 | | | 34 | | Maintenance | | 2022 | | | 38 | | | 36 | |
| Money pool borrowings (advances) | Money pool borrowings (advances) | (Interest Charges)/Other Income, Net | 2022 | | $ | (b) | $ | (b) | Money pool borrowings (advances) | (Interest Charges)/Other Income, Net | 2023 | | $ | (b) | $ | (b) |
| | 2021 | | | (b) | | (b) | | 2022 | | | (b) | | (b) |
(a)Not applicable.
(b)Amount less than $1 million.
NOTE 9 – COMMITMENTS AND CONTINGENCIES
We are involved in legal, tax, and regulatory proceedings before various courts, regulatory commissions, authorities, and governmental agencies with respect to matters that arise in the ordinary course of business, some of which involve substantial amounts of money. We believe that the final disposition of these proceedings, except as otherwise disclosed in the notes to our financial statements in this report and in the Form 10-K, will not have a material adverse effect on our results of operations, financial position, or liquidity.
Reference is made to Note 1 – Summary of Significant Accounting Policies, Note 2 – Rate and Regulatory Matters, Note 9 – Callaway Energy Center, Note 13 – Related-party Transactions, and Note 14 – Commitments and Contingencies under Part II, Item 8, of the Form 10-K. See also Note 1 – Summary of Significant Accounting Policies, Note 2 – Rate and Regulatory Matters, Note 8 – Related-party Transactions, and Note 10 – Callaway Energy Center of this report.
Environmental Matters
Our electric generation, transmission, and distribution and natural gas distribution and storage operations must comply with a variety of statutes and regulations relating to the protection of the environment and human health and safety including permitting programs implemented viaby federal, state, and local authorities. Such environmental laws address air emissions; discharges to water bodies; the storage, handling and disposal of hazardous substances and waste materials; siting and land use requirements; and potential ecological impacts. Complex and lengthy processes are required to obtain and renew approvals, permits, and licenses for new, existing, or modified facilities.
Additionally, the use and handling of various chemicals or hazardous materials require release prevention plans and emergency response procedures. We employ dedicated personnel knowledgeable in environmental matters to oversee our business activities’ compliance with regulatory requirements.requirements of environmental laws.
Environmental regulations have a significant impact on the electric utility industry and compliance with these regulations could be costly for Ameren Missouri, which operates coal-fired power plants. Regulations under the Clean Air Act regulations that apply to the electric utility industry include the NSPS, the CSAPR, the MATS, and the National Ambient Air Quality Standards, which are subject to periodic review for certain pollutants. Collectively, these regulations cover a variety of pollutants, such as SO2, particulate matter, NOx,NOx, mercury, toxic metals and acid gases, and CO2 emissions from new power plants.emissions. Regulations implementing the Clean Water Act govern both intake and discharges of water, and may requireas well as evaluation of the ecological and biological impact of our operations and could require modifications to water intake structures or more stringent limitations on wastewater discharges. Depending upon the scope of modifications ultimately required by state regulators, these capital expenditures associated with these modifications could be significant. The management and disposal of coal ash is regulated under the Resource Conservation and Recovery Act and the CCR Rule, which require the closure of our surface impoundments at Ameren Missouri’s coal-fired energy centers. The individual or combined effects of compliance with existing and new environmental regulations could result in significant capital expenditures, increased operating costs, or the closure or alteration of operations at some of Ameren Missouri’s energy centers. Ameren and Ameren Missouri expect that such compliance costs would be recoverable through rates, subject to MoPSC prudence review, but the timing of costs and their recovery could be subject to regulatory lag.
Additionally, Ameren Missouri’s wind generation facilities may be subject to operating restrictions to limit the impact on protected species. From April through October, in both 2021 and 2022, Ameren Missouri's High Prairie Renewable Energy Center curtailed nighttime operations to limit impacts on protected species. Seasonal nighttime curtailment began again in April 2023 as the critical biological season resumed, but the extent and duration of the curtailment is unknown at this time as assessment of mitigation technologies is ongoing. Ameren Missouri does not anticipate these operating curtailments to have a material impact on its results of operations, financial position, or liquidity.
Ameren and Ameren Missouri estimate that they will need to make capital expenditures of $125$90 million to $175$120 million from 20222023 through 20262027 in order to comply with existing environmental regulations. Additional environmental controls beyond 20262027 could be required. This estimate of capital expenditures includes ash pondsurface impoundment closure and corrective action measures required by the CCR Rule and the effluent limitation guidelines applicable to steam electric generating units, and potential modifications to cooling water intake structures at existing power plants under Clean Water Act rules, all of which are discussed below. In addition to planned retirements of coal-fired energy centers as set forth in the 2022 Change to the 2020 IRP filed with the MoPSC in June 2022 and as noted in the NSR and Clean Air Act litigation and Illinois emissions standards discussed below, Ameren Missouri’s current plan for compliance with existing air emission regulations includes the closure of the Venice Energy Center by 2030 as discussed below in Illinois Emission Standards, burning low-sulfur coal and installing new or optimizing existing air pollution control equipment. The actual amount of capital expenditures required to comply with existing environmental regulations may vary substantially from the above estimates because of uncertainty as to future permitting requirements made by state regulators and the EPA, potential revisions to regulatory obligations, and thevarying cost of potential compliance strategies, among other things.
The following sections describe the more significant environmental laws and rules and environmental enforcement and remediation matters that affect or could affect our operations. The EPA has initiated an administrative review of severalperiodically amends and revises its regulations and proposedproposes amendments to regulations and guidelines, including the CSAPR, which could ultimately result in the revision of all or part of such rules. Additionally, Ameren Missouri’s wind generation facilities may be subject to operating restrictions to limit the impact on protected species. Seasonal nighttime curtailment began at the High Prairie Renewable Energy Center at the end of March 2022, but the extent and duration of the curtailment is unknown at this time as assessment of mitigation technologies is ongoing. Nighttime operating restrictions may be required during the critical biological season, which typically occurs from April through October. Ameren Missouri does not anticipate these operating curtailments to result in significant impacts on its results of operations, financial position, or liquidity.
Clean Air Act
Federal and state laws, including the CSAPR, regulate emissions of SO2 and NOx through the reduction of emissions at their source and the use and retirement of emission allowances. The CSAPR is implemented through a series of phases, and the second phase became effective in 2017. In April 2022, the EPA proposed plans for additional NOx emission reductions from power plants in Missouri, Illinois, and other states through revisions to the CSAPR. In January 2023, the EPA issued its final disapproval of Missouri’s proposed state implementation plan for addressing the transport of ozone under the Good Neighbor Plan of the Clean Air Act. The disapproval of the state plan allows the EPA to implement revisions to the CSAPR through a federal implementation plan. In March 2023, the EPA announced federal implementation plan requirements for Missouri, Illinois, and additional emission reduction requirements may apply in subsequent years.other states under the Good Neighbor Plan of the Clean Air Act. In April 2023, the Missouri Attorney General and Ameren Missouri compliesseparately filed lawsuits in the Eighth Circuit Court of Appeals challenging the EPA’s disapproval of the Missouri state plan. Unless stayed by a judicial action, in mid-2023, the EPA is expected to finalize a federal implementation plan reducing the amount of NOx allowances available for state budgets and imposing NOx emission limits on electric generating units. Ameren Missouri has complied with the current CSAPR requirements by minimizing emissions through the use of low-sulfur coal, operation of 2two scrubbers at its Sioux Energy Center, and optimization of other existing NOxair pollution control equipment. Restrictions on state budget NOx allowances could result in additional controls on Ameren Missouri’s generating units and/or the reduction of operations. Ameren Missouri could incur additional costs to lower its emissions at one or more of its energy centersis evaluating potential options to comply with additional CSAPR requirements in future years. Thesethe federal implementation plan. Any additional costs for compliance are expected to be recovered from customers, subject to MoPSC prudence review, through the FAC or higher base rates.
CO2 Emissions Standards
The EPA’s Affordable Clean Energy Rule repealedIn June 2022, the Clean Power Plan and replaced it with a new rule that established emission guidelines for states to follow in developing plans to limit CO2 emissions and identified certain efficiency measures as the best system of
emission reduction for coal-fired electric generating units. In January 2021, the United States Court of Appeals for the District of Columbia Circuit vacated the Affordable Clean Energy Rule, and ruled that the EPA had the discretion to consider emission reduction measures that include efficiency measures and generation shifting to lower carbon emissions. The United States Supreme Court agreedissued its decision in West Virginia v. EPA, clarifying that there are limits on how the EPA may regulate greenhouse gases absent further direction from the United States Congress. The court concluded that emission caps designed to reviewshift generation from fossil-fuel-fired power plants to renewable energy facilities would require specific congressional authorization and that such authorization had not been given under the court of appeals’ ruling and oral arguments occurred in February 2022, with a decision expected by mid-2022. AClean Air Act. The decision by the United States Supreme Court could impactmay affect the EPA’s development of any new regulations to address carbonCO2 emissions from coal- and natural gas-fired electric generating units. Atpower plants; however, at this time, Ameren Missouri cannot predict the outcomeimpact of any such regulations or the legal challenge or future rulemakings. As such, any impactdecision by the United States Supreme Court on the results of operations, financial position, and liquidity of Ameren andor Ameren Missouri is uncertain.Missouri.
NSR and Clean Air Act Litigation
In January 2011, the United States Department of Justice, on behalf of the EPA, filed a complaint against Ameren Missouri in the United States District Court for the Eastern District of Missouri alleging that projects performed in performing projects2007 and 2010 at itsthe coal-fired Rush Island Energy Center in 2007 and 2010, Ameren Missouri violated provisions of the Clean Air Act and Missouri law. In January 2017, the district court issued a liability ruling against Ameren Missouri and, in September 2019, entered a remedy order that required Ameren Missouri to install a flue gas desulfurization system at the Rush Island Energy Center and a dry sorbent injection system at the Labadie Energy Center. Following an appeal from Ameren Missouri appealed both the liability and remedy orders and, in August 2021, the United States Court of Appeals for the Eighth Circuit issued a decision that affirmed the liability ruling and the district court’s remedy order as it related to the installation of a flue gas desulfurization system at the Rush Island Energy Center, but reversed the order as it related to the installation of a dry sorbent injection system at the Labadie Energy Center. In November 2021, the court of appeals issued an order denying requests for consideration previouslyre-consideration sought by both Ameren Missouri and the United States Department of Justice.
Based on its assessment of available legal, operational, and regulatory alternatives, Ameren Missouri has determined not to further appeal the court rulings and,filed a motion in December 2021, filed a motion with the district court to modify the remedy order to allow the retirement of the Rush Island Energy Center in advance of its previously expected useful life in lieu of installing a flue gas desulfurization system. The March 31, 2024 compliance date contained in the district courtcourt’s September 2019 remedy order remains in effect unless extended by the district court. In 2022, in response to an Ameren Missouri request for a final, binding reliability assessment, the MISO designated the Rush Island Energy Center as a system support resource and concluded that certain mitigation measures, including transmission upgrades, should occur before the energy center is retired. The transmission upgrade projects have been approved by the MISO, and design and procurement activities necessary to complete the upgrades are underway. Ameren Missouri expects to complete the upgrades by mid-2025. In 2022, the FERC approved a system support resource agreement, which became effective as of September 1, 2022. The agreement details the manner of continued operation for a system support resource that results in operating during peak demand times and emergencies. The system support resource designation and the related agreement are subject to annual renewal and revision. In September 2022, the Rush Island Energy Center began operating consistent with the system support resource agreement. In addition, in October 2022, the FERC established hearing and settlement procedures in response to an August 2022 request from Ameren Missouri for recovery of non-energy costs under the related MISO tariff. The FERC is under no deadline to issue a ruling revising the remedy order. In January 2022,an order related to this proceeding. Revenues and costs under the MISO completed a preliminary informational assessment regarding potential impacts of the retirement to the regional electric power system, which indicated transmission upgrades and voltage support would be needed in advance of the retirement of the Rush Island Energy Center to address reliability concerns. In February 2022, Ameren Missouri formally notified the MISO of its intent to retire the Rush Island Energy Center and requested the MISO to perform a final reliability assessment, which is expected to be completed in May 2022. The MISO must also separately approve the specific upgrades and transmission support required to address reliability concerns notedtariff are included in the final assessment. Additionally, the MISO will determine whether reliability concerns require the Rush Island Energy Center to be classified as a system support resource, which should continue operating until the completion of to-be-specified transmission upgrades. If the Rush Island Energy Center were identified as a system support resource, an agreement detailing the manner of and time for continued operation would be filed with the FERC for approval.FAC. The district court has the authority to determine the retirement date and operating parameters for the Rush Island Energy Center and is not bound by the MISO determination of the Rush Island Energy Center as a system support resource or the FERC’s approval. The district court is under no deadline to issue a ruling modifying the remedy order. Related to this matter, in February 2022, the MoPSC issued an order directing the MoPSC staff to review the planned accelerated retirement of the Rush Island Energy Center. See Note 2 – Rate and Regulatory Matters for additional information.
In connection with the planned accelerated retirement of the Rush Island Energy Center, Ameren Missouri expects to seek approval from the MoPSC to finance the costs associated with the retirement, including the remaining unrecovered net plant balance associated with the facility, through the issuance of securitized utility tariff bonds pursuant to the MissouriMissouri’s securitization statute that became effective in August 2021.statute. As of March 31, 2022,2023, the Rush Island Energy Center had a net plant balance of approximately $0.6 billion included in plant to be abandoned, net, within “Property, Plant, and Equipment, Net” and a rate base of approximately $0.4 billion. See Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of the Form 10-K for additional information regarding plant to be abandoned, net. In addition, Ameren Missouri expects to file an update to the 2020 IRP with the MoPSC in June 2022 to reflect the planned acceleration of the retirement of the Rush Island Energy Center from 2039, the retirement year for the facility as reflected in the 2020 IRP and reflected in depreciation rates approved by the December 2021 MoPSC electric rate order.
Ameren Missouri is unable to predict the ultimate resolution of this matter; however, such resolution could have a material adverse effect on the results of operations, financial position, and liquidity of Ameren and Ameren Missouri.
Clean Water Act
The EPA’s regulations implementing Section 316(b) of the Clean Water Act require power plant operators to evaluate cooling water intake structures and identify measures for reducing the number of aquatic organisms impinged on a power plant’s cooling water intake screens or entrained through the plant’s cooling water system. All of Ameren Missouri’s coal-fired and nuclear energy centers are subject to the cooling water intake structures rule. Requirements of the rule are implemented by state regulators through the permit renewal process of each power plant’s water discharge permit, which is expected to be completed by 2023permit. Permits for Ameren Missouri.Missouri’s coal-fired and nuclear energy centers have been issued or are in the process of renewal.
In 2015, the EPA issued a rule to revise the effluent limitation guidelines applicable to steam electric generating units. These guidelines established national standards for water discharges, prohibit effluent discharges of certain waste streams, and impose more stringent
limitations on certain water discharges from power plants.plants by 2025. To meet the requirements of thecomply with these guidelines, Ameren Missouri installed dry ash handling systems and in 2020 completed construction of wastewater treatment facilities at 3 of its 4 coal-fired energy centers. The Meramec Energy Center is scheduled to retire in 2022 and, as a result, does not require new wastewater and dry ash handling systems.
CCR Management
The EPA’s CCR Rule establishes requirements for the management and disposal of CCR from coal-fired power plants and will resulthas resulted in the closure of certain surface impoundments at Ameren Missouri’s energy centers. Ameren Missouri completed the closure of all surface impoundments at its Labadie and Rush Island energy centers in 2021, and has made significant progress by closing several impoundments at its Sioux and Meramec energy centers. Ameren Missouri plans to substantially complete the closures of the remaining surface impoundments at its Sioux Energy Center and retired Meramec Energy Center as required by the CCR Rule in 2023. In January 2022, Ameren Missouri received notice of a proposed determination by the EPA that it has rejectedend of 2024. Ameren Missouri’s requests to extend the timeline for operating certain impoundments located at the SiouxCCR management compliance plan includes installation of groundwater monitoring equipment and Meramec energy centers. Pursuant to the terms of the proposed determination, compliance with the CCR Rule’s requirements for closure of the impoundments would be required 135 days after the EPA issues a final determination, which Ameren Missouri expects to be issued in the spring of 2022. If Ameren Missouri was no longer able to use the surface impoundments at the Sioux or Meramec energy centers, Ameren Missouri would not be able to operate the energy centers unless an alternative for handling the CCR material was available. Ameren Missouri will retire the Meramec Energy Center in 2022, and construction is underway to complete a CCR Rule-compliant impoundment at the Sioux Energy Center to allow for continued operations. Additionally, Ameren Missouri is seeking a reliability determination from the MISO, which, if granted and accepted by the EPA, would extend the deadline to comply with the requirement to close the surface impoundments and allow the energy centers to operate. Ameren expects the MISO determination to be completed in June 2022. Ameren Missouri does not expect that this matter will have a material adverse effect on its results of operations, financial position, or liquidity.
groundwater treatment facilities. Ameren and Ameren Missouri have AROs of $79$48 million recorded on their respective balance sheets as of March 31, 2022,2023, associated with CCR storage facilities. Ameren Missouri estimates it will need to make capital expenditures of $60 million to $80 million from 2022 through 2026 to implement its CCR management compliance plan, which includes installation of groundwater monitoring equipment and groundwater treatment facilities.
Remediation
The Ameren Companies are involved in a number of remediation actions to clean up sites impacted by the use or disposal of materials containing hazardous substances. Federal and state laws can require responsible parties to fund remediation regardless of their degree of fault, the legality of original disposal, or the ownership of a disposal site.
As of March 31, 2022,2023, Ameren Illinois has remediated the majority of the 44 former MGP sites in Illinois and could substantially conclude remediation efforts at the remaining sites byin 2023. The ICC allows Ameren Illinois to recover such remediation and related litigation costs from its electric and natural gas utility customers through environmental cost riders that are subject to annual prudence reviews by the ICC. As of March 31, 2022,2023, Ameren Illinois estimated the remaining obligation related to these former MGP sites at $68$58 million to $125$108 million. Ameren and Ameren Illinois recorded a liability of $68$58 million to represent the estimated minimum obligation for these sites, as no other amount within the range was a better estimate. About half of the remaining liability recorded relates to remediation activities that are expected to be completed after 2023.
The scope of the remediation activities at these former MGP sites may increase as remediation efforts continue. Considerable uncertainty remains in these estimates because many site-specific factors can influence the actual costs, including unanticipated underground structures, the degree to which groundwater is encountered, regulatory changes, local ordinances, and site accessibility. The actual costs and timing of completion may vary substantially from these estimates.
Our operations or those of our predecessor companies involve the use of, disposal of, and, in appropriate circumstances, the cleanup of substances regulated under environmental laws. We are unable to determine whether such historical practices will result in future environmental commitments, including additional or more stringent cleanup standards, or will affect our results of operations, financial position, or liquidity.
Illinois Emission Standards
The IETL established emission standards that became effective in September 2021. Ameren Missouri's natural gas-fired energy centers in Illinois are subject to limits on emissions, including CO2 and NOx, equal to their unit-specific average emissions from 2018 through 2020, for any rolling twelve-month period beginning October 1, 2021, through 2029. Further reductions to emissions limits will become effective between 2030 and 2040, which could limit the operations of Ameren Missouri's 5 natural gas-fired energy centers located in the state of Illinois, and will result in the closure of the Venice Energy Center by 2030. These energy centers are utilized to support peak loads. Subject to conditions in the IETL, these energy centers may be allowed to exceed the emissions limits in order to maintain reliability of electric utility service as necessary. Ameren Missouri is reviewing the emission standards and the effect they may have on its generation strategy, including any increases in capital expenditures or operating costs, and changes to the useful life of the Venice Energy Center. Ameren Missouri expects to file an update to the 2020 IRP with the MoPSC in June 2022 to reflect, among other things, the impact of these new emissions standards.
NOTE 10 – CALLAWAY ENERGY CENTER
See Note 9 – Callaway Energy Center under Part II, Item 8, of the Form 10-K for information regarding spent nuclear fuel recovery, recovery of decommissioning costs, and the nuclear decommissioning trust fund. The fair value of the trust fund for Ameren Missouri’s Callaway Energy Center is reported as “Nuclear decommissioning trust fund” in Ameren’s and Ameren Missouri’s balance sheets. This amount is legally restricted and may be used only to fund the costs of nuclear decommissioning. Changes in the fair value of the trust fund are recorded as an increase or decrease to the nuclear decommissioning trust fund, with an offsetting adjustment to the related regulatory liability. Ameren and Ameren Missouri have recorded an ARO for the Callaway Energy Center decommissioning costs at fair value, which represents the present value of estimated future cash outflows. Annual decommissioning costs of $7 million are included in the costs used to establish electric rates for Ameren Missouri’s customers. Every three years, the MoPSC requires Ameren Missouri to file an updated cost study and funding analysis for decommissioning its Callaway Energy Center. An updated cost study and funding analysis was filed with the MoPSC in November 2020 and reflected within the ARO. In February 2021, the MoPSC approved no change in electric rates for decommissioning costs based on Ameren Missouri’s updated cost study funding analysis. See Note 13 – Supplemental Information for more information on Ameren Missouri’s AROs.
See Note 9 – Callaway Energy Center under Part II, Item 8,Insurance
The following table presents insurance coverage at Ameren Missouri’s Callaway Energy Center at April 1, 2022:2023:
| | Type and Source of Coverage | Type and Source of Coverage | Most Recent
Renewal Date | Maximum Coverages | | Maximum Assessments
for Single Incidents | | Type and Source of Coverage | Most Recent
Renewal Date | Maximum Coverages | | Maximum Assessments
for Single Incidents | |
| Public liability and nuclear worker liability: | Public liability and nuclear worker liability: | | Public liability and nuclear worker liability: | |
| American Nuclear Insurers | American Nuclear Insurers | January 1, 2022 | $ | 450 | | | $ | — | | | American Nuclear Insurers | January 1, 2023 | $ | 450 | | | $ | — | | |
| Pool participation | Pool participation | (a) | 13,073 | | (a) | 138 | | (b) | Pool participation | (a) | 13,210 | | (a) | 138 | | (b) |
| | $ | 13,523 | | (c) | $ | 138 | | | | $ | 13,660 | | (c) | $ | 138 | | |
| Property damage: | Property damage: | | Property damage: | |
| NEIL and EMANI | NEIL and EMANI | April 1, 2022 | $ | 3,200 | | (d) | $ | 26 | | (e) | NEIL and EMANI | April 1, 2023 | $ | 3,200 | | (d) | $ | 28 | | (e) |
| Accidental outage: | Accidental outage: | | Accidental outage: | |
| NEIL | NEIL | April 1, 2022 | $ | 490 | | (f) | $ | 7 | | (e) | NEIL | April 1, 2023 | $ | 490 | | (f) | $ | 9 | | (e) |
(a)Provided through mandatory participation in an industrywide retrospective premium assessment program. The maximum coverage available is dependent on the number of United States commercial reactors participating in the program.
(b)Retrospective premium under the Price-Anderson Act. This is subject to retrospective assessment with respect to a covered loss in excess of $450 million in the event of an incident at any licensed United States commercial reactor, payable at $21 million per year.
(c)Limit of liability for each incident under the Price-Anderson liability provisions of the Atomic Energy Act of 1954, as amended. This limit is subject to change to account for the effects of inflation and changes in the number of licensed power reactors.
(d)NEIL provides $2.7 billion in property damage, stabilization, decontamination, and premature decommissioning insurance for radiation events and $2.3 billion in property damage insurance for nonradiation events. EMANI provides $490 million in property damage insurance for both radiation and nonradiation events.
(e)All NEIL-insured plants could be subject to assessments should losses exceed the accumulated funds from NEIL.
(f)Accidental outage insurance provides for lost sales in the event of a prolonged accidental outage. Weekly indemnity up to $4.5 million for 52 weeks, which commences after the first 12 weeks of an outage, plus up to $3.6 million per week for a minimum of 71 weeks thereafter for a total not exceeding the policy limit of $490 million. Nonradiation events are limited to $328 million.
The Price-Anderson Act is a federal law that limits the liability for claims from an incident involving any licensed United States commercial nuclear energy center. The limit is based on the number of licensed reactors. The limit of liability and the maximum potential annual payments are adjusted at least every five years for inflation to reflect changes in the Consumer Price Index. The most recent five-year inflationary adjustment became effective in November 2018. Owners of a nuclear reactor cover this exposure through a combination of private insurance and mandatory participation in a financial protection pool, as established by the Price-Anderson Act.
Losses resulting from terrorist attacks on nuclear facilities insured by NEIL are subject to industrywide aggregates, such that terrorist acts against one or more commercial nuclear power plants within a stated time period would be treated as a single event, and the owners of the nuclear power plants would share the limit of liability. NEIL policies have an aggregate limit of $3.2 billion within a 12-month period for radiation events, or $1.8 billion for events not involving radiation contamination, resulting from terrorist attacks. The EMANI policies are not subject to industrywide aggregates in the event of terrorist attacks on nuclear facilities.
If losses from a nuclear incident at the Callaway Energy Center exceed theinsurance limits, of, or are not covered by insurance, or if coverage is unavailable, Ameren Missouri is at risk for any uninsured losses. If a serious nuclear incident were to occur, it could have a material adverse effect on Ameren’s and Ameren Missouri’s results of operations, financial position, or liquidity.
NOTE 11 – RETIREMENT BENEFITS
The following table presents the components of the net periodic benefit cost (income) incurred for Ameren’s pension and postretirement benefit plans for the three months ended March 31, 20222023 and 2021:2022:
| | | | Pension Benefits | | | | Postretirement Benefits | | | Pension Benefits | | | | Postretirement Benefits |
| | | Three Months | | | | Three Months | | | Three Months | | | | Three Months |
| | | 2022 | | 2021 | | | | 2022 | | 2021 | | | 2023 | | 2022 | | | | 2023 | | 2022 |
Service cost(a) | Service cost(a) | | $ | 33 | | | $ | 33 | | | | | $ | 5 | | | $ | 6 | | Service cost(a) | | $ | 23 | | | $ | 33 | | | | | $ | 3 | | | $ | 5 | |
| Non-service cost components: | Non-service cost components: | | | | | | Non-service cost components: | | | | | |
| Interest cost | Interest cost | | 40 | | | 38 | | | | | 8 | | | 8 | | Interest cost | | 55 | | | 40 | | | | | 11 | | | 8 | |
Expected return on plan assets | Expected return on plan assets | | (80) | | | (75) | | | | | (21) | | | (20) | | Expected return on plan assets | | (83) | | | (80) | | | | | (23) | | | (21) | |
| Amortization of: | | | | | | |
Amortization of(b): | | Amortization of(b): | | | | | |
| | Prior service benefit | Prior service benefit | | — | | | — | | | | | (1) | | | (1) | | Prior service benefit | | — | | | — | | | | | (1) | | | (1) | |
| Actuarial loss (gain) | Actuarial loss (gain) | | 6 | | | 17 | | | | | (4) | | | (1) | | Actuarial loss (gain) | | (29) | | | 6 | | | | | (11) | | | (4) | |
Total non-service cost components(b)(c) | Total non-service cost components(b)(c) | | $ | (34) | | | $ | (20) | | | | | $ | (18) | | | $ | (14) | | Total non-service cost components(b)(c) | | $ | (57) | | | $ | (34) | | | | | $ | (24) | | | $ | (18) | |
| | Net periodic benefit cost (income) | | $ | (1) | | | $ | 13 | | | | | $ | (13) | | | $ | (8) | | |
Net periodic benefit income(d) | | Net periodic benefit income(d) | | $ | (34) | | | $ | (1) | | | | | $ | (21) | | | $ | (13) | |
(a)Service cost, net of capitalization, is reflected in “Operating Expenses – Other operations and maintenance” on Ameren’s statement of income.
(b)Prior service benefit is amortized on a straight-line basis over the average future service of active participants benefiting under a plan amendment. Net actuarial gains or losses related to the net benefit obligation subject to amortization are amortized on a straight-line basis over 10 years. The difference between the actual and expected return on plan assets is amortized over 4 years.
(c)Non-service cost components are reflected in “Other Income, Net” on Ameren’s consolidated statement of income. See Note 5 – Other Income, Net for additional information.
(d)Does not include the impact of the tracker for the difference between the level of pension and postretirement benefit costs (income) incurred by Ameren Missouri under GAAP and the level of such costs included in rates.
Ameren Missouri and Ameren Illinois are responsible for their respective share of Ameren’s pension and other postretirement costs. The following table presents the respective share of net periodic pension and other postretirement benefit costs (income) incurred for the three months ended March 31, 20222023 and 2021:2022:
| | | | Pension Benefits | | | | Postretirement Benefits | | | Pension Benefits | | | | Postretirement Benefits |
| | | Three Months | | | | Three Months | | | Three Months | | | | Three Months |
| | | 2022 | | 2021 | | | | 2022 | | 2021 | | | 2023 | | 2022 | | | | 2023 | | 2022 |
Ameren Missouri(a) | Ameren Missouri(a) | | $ | (1) | | | $ | 6 | | | | | $ | (3) | | | $ | (1) | | Ameren Missouri(a) | | $ | (18) | | | $ | (1) | | | | | $ | (8) | | | $ | (3) | |
| Ameren Illinois | Ameren Illinois | | 1 | | | 8 | | | | | (10) | | | (7) | | Ameren Illinois | | (14) | | | 1 | | | | | (13) | | | (10) | |
| Other | Other | | (1) | | | (1) | | | | | — | | | — | | Other | | (2) | | | (1) | | | | | — | | | — | |
Ameren(a) | Ameren(a) | | $ | (1) | | | $ | 13 | | | | | $ | (13) | | | $ | (8) | | Ameren(a) | | $ | (34) | | | $ | (1) | | | | | $ | (21) | | | $ | (13) | |
(a)Does not include the impact of the regulatory tracking mechanismtracker for the difference between the level of pension and postretirement benefit costs (income) incurred by Ameren Missouri under GAAP and the level of such costs included in rates.
NOTE 12 – INCOME TAXES
The following table presents a reconciliation of the federal statutory corporate income tax rate to the effective income tax rate for the three months ended March 31, 20222023 and 2021:2022:
| | Ameren | | Ameren Missouri | | Ameren Illinois | | |
| 2022 | | 2021 | | 2022 | | 2021 | | 2022 | | 2021 | | |
| Three Months | | |
| Federal statutory corporate income tax rate | 21 | % | | 21 | % | | 21 | % | | 21 | % | | 21 | % | | 21 | % | | |
| Increases (decreases) from: | | |
| Amortization of deferred investment tax credit | — | | | (1) | | | (1) | | | (1) | | | — | | | — | | | |
Amortization of excess deferred taxes(a) | (8) | | | (9) | |
| (16) | | | (17) | |
| (2) | | | (2) | | | |
| Depreciation differences | — | | | — | | | — | | | 1 | | | — | | | (1) | | | |
| Renewable and other tax credits(b) | (5) | | | (6) | | | (11) | | | (11) | | | — | | | — | | | |
| State tax | 5 | | | 6 | | | 3 | | | 3 | | | 7 | | | 7 | | | |
| Stock-based compensation | (1) | | | (1) | | | — | | | — | | | — | | | — | | | |
| | Effective income tax rate | 12 | % | | 10 | % | | (4) | % | | (4) | % | | 26 | % | | 25 | % | | |
| | | | Ameren | | Ameren Missouri | | Ameren Illinois | |
| | | 2023 | | 2022 | | 2023 | | 2022 | | 2023 | | 2022 | |
| | | Three Months | | Three Months | |
| Federal statutory corporate income tax rate | | Federal statutory corporate income tax rate | 21 | % | | 21 | % | | 21 | % | | 21 | % | | 21 | % | | 21 | % | |
| Increases (decreases) from: | | Increases (decreases) from: | |
| Amortization of deferred investment tax credit | | Amortization of deferred investment tax credit | — | | | — | | | — | | | (1) | | | — | | | — | | |
Amortization of excess deferred taxes(a) | | Amortization of excess deferred taxes(a) | (8) | | | (8) | |
| (16) | | | (16) | |
| (2) | | | (2) | | |
| Renewable and other tax credits(b) | | Renewable and other tax credits(b) | (5) | | | (5) | | | (10) | | | (11) | | | — | | | — | | |
| State tax | | State tax | 6 | | | 5 | | | 4 | | | 3 | | | 7 | | | 7 | | |
| Stock-based compensation | | Stock-based compensation | (1) | | | (1) | | | — | | | — | | | — | | | — | | |
| Other permanent items | | Other permanent items | (1) | | | — | | | (3) | | | — | | | (1) | | | — | | |
| Effective income tax rate | | Effective income tax rate | 12 | % | | 12 | % | | (4) | % | | (4) | % | | 25 | % | | 26 | % | |
(a)Reflects the amortization of amounts resulting from the revaluation of deferred income taxes subject to regulatory ratemaking, which are being refunded to customers. Deferred income taxes are revalued when federal or state income tax rates change, and the offset to the revaluation of deferred income taxes subject to regulatory ratemaking is recorded to a regulatory asset or liability.
(b)Includes credits associated with the High Prairie and Atchison renewable energy centers. Ameren Missouri placed the High Prairie renewable energy center in service in December 2020. Additionally, Ameren Missouri placed in service the wind turbines at its Atchison renewable energy center throughout the first half of 2021. The benefit of the credits associated with Missouri renewable energy standard compliance is refunded to customers through the RESRAM.
NOTE 13 – SUPPLEMENTAL INFORMATION
Cash, Cash Equivalents, and Restricted Cash
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheets and the statements of cash flows at March 31, 2022,2023, and December 31, 2021:2022:
| | | March 31, 2022 | | | December 31, 2021 | | March 31, 2023 | | | December 31, 2022 |
| Ameren | | Ameren
Missouri | | Ameren
Illinois | | | Ameren | | Ameren
Missouri | | Ameren
Illinois | Ameren | | Ameren
Missouri | | Ameren
Illinois | | | Ameren | | Ameren
Missouri | | Ameren
Illinois |
| “Cash and cash equivalents” | “Cash and cash equivalents” | $ | 7 | | | $ | 1 | | | $ | — | | | | $ | 8 | | | $ | — | | | $ | — | | “Cash and cash equivalents” | $ | 10 | | | $ | 3 | | | $ | — | | | | $ | 10 | | | $ | — | | | $ | — | |
| | Restricted cash included in “Other current assets” | Restricted cash included in “Other current assets” | 10 | | | 3 | | | 5 | | | | 16 | | | 4 | | | 6 | | Restricted cash included in “Other current assets” | 13 | | | 5 | | | 6 | | | | 13 | | | 5 | | | 6 | |
| Restricted cash included in “Other assets” | Restricted cash included in “Other assets” | 132 | | | — | | | 132 | | | | 127 | | | — | | | 127 | | Restricted cash included in “Other assets” | 211 | | | — | | | 211 | | | | 185 | | | — | | | 185 | |
| Restricted cash included in “Nuclear decommissioning trust fund” | Restricted cash included in “Nuclear decommissioning trust fund” | 5 | | | 5 | | | — | | | | 4 | | | 4 | | | — | | Restricted cash included in “Nuclear decommissioning trust fund” | 3 | | | 3 | | | — | | | | 8 | | | 8 | | | — | |
| Total cash, cash equivalents, and restricted cash | Total cash, cash equivalents, and restricted cash | $ | 154 | | | $ | 9 | | | $ | 137 | | | | $ | 155 | | | $ | 8 | | | $ | 133 | | Total cash, cash equivalents, and restricted cash | $ | 237 | | | $ | 11 | | | $ | 217 | | | | $ | 216 | | | $ | 13 | | | $ | 191 | |
Restricted cash included in “Other current assets” primarily represents funds held by an irrevocable Voluntary Employee Beneficiary Association (VEBA) trust, which provides health care benefits for active employees. Restricted cash included in “Other assets” on Ameren’s
and Ameren Illinois’ balance sheets primarily represents amounts collected under a cost recovery rider restricted for use in the procurement of renewable energy credits and amounts in a trust fund restricted for the use of funding certain asbestos-related claims.
Accounts Receivable
“Accounts receivable – trade” on Ameren’s and Ameren Illinois’ balance sheets include certain receivables purchased at a discount from alternative retail electric suppliers that elect to participate in the utility consolidated billing program. At March 31, 2022,2023, and December 31, 2021,2022, “Other current liabilities” on Ameren’s and Ameren Illinois’ balance sheets included payables for purchased receivables of $29$35 million and $27$31 million, respectively.
The following table provides a reconciliation of the beginning and ending amount of the allowance for doubtful accounts for the three months ended March 31, 20222023 and 2021:2022:
| | | | Three Months | | | Three Months |
| | | 2022 | | 2021 | | | 2023 | | 2022 | |
| Ameren: | Ameren: | | | Ameren: | | |
| Beginning of period | Beginning of period | | $ | 29 | | | $ | 50 | | Beginning of period | | $ | 31 | | | $ | 29 | | |
| Bad debt expense | Bad debt expense | | 4 | | | 4 | | Bad debt expense | | 10 | | | 4 | | |
| | Net write-offs | Net write-offs | | (5) | | | (7) | | Net write-offs | | (7) | | | (5) | | |
| | End of period | End of period | | $ | 28 | | | $ | 47 | | End of period | | $ | 34 | | | $ | 28 | | |
| Ameren Missouri: | Ameren Missouri: | | | Ameren Missouri: | | |
| Beginning of period | Beginning of period | | $ | 13 | | | $ | 16 | | Beginning of period | | $ | 13 | | | $ | 13 | | |
| Bad debt expense | Bad debt expense | | 1 | | | 1 | | Bad debt expense | | 2 | | | 1 | | |
| | Net write-offs | Net write-offs | | (3) | | | (2) | | Net write-offs | | (3) | | | (3) | | |
| End of period | End of period | | $ | 11 | | | $ | 15 | | End of period | | $ | 12 | | | $ | 11 | | |
Ameren Illinois:(a) | Ameren Illinois:(a) | | | Ameren Illinois:(a) | | |
| Beginning of period | Beginning of period | | $ | 16 | | | $ | 34 | | Beginning of period | | $ | 18 | | | $ | 16 | | |
| Bad debt expense | Bad debt expense | | 3 | | | 3 | | Bad debt expense | | 8 | | | 3 | | |
| | Net write-offs | Net write-offs | | (2) | | | (5) | | Net write-offs | | (4) | | | (2) | | |
| | End of period | End of period | | $ | 17 | | | $ | 32 | | End of period | | $ | 22 | | | $ | 17 | | |
(a)Ameren Illinois has rate-adjustment mechanisms that allow it to recover the difference between its actual net bad debt write-offs under GAAP, including those associated with receivables purchased from alternative retail electric suppliers, and the amount of net bad debt write-offs included in its base rates.
As of March 31, 2023, accounts receivable balances that were 30 days or greater past due or that were a part of a deferred payment arrangement represented 23%, 15%, and 28%, or $153 million, $33 million, and $120 million, of Ameren’s, Ameren Missouri’s, and Ameren Illinois’ customer trade receivables before allowance for doubtful accounts, respectively. In comparison, as of March 31, 2022, these percentages were 20%, 15%, and 23%, or $116 million, $31 million, and $85 million, for Ameren, Ameren Missouri, and Ameren Illinois, respectively.
Supplemental Cash Flow Information
Capital expenditures at Ameren and Ameren Missouri included wind generation expenditures of an immaterial amount for the three months ended March 31, 2022, and $193 million for the three months ended March 31, 2021.
The following table provides noncash financing and investing activity excluded from the statements of cash flows for the three months ended March 31, 20222023 and 2021:2022:
| | | March 31, 2022 | | March 31, 2021 | | March 31, 2023 | | March 31, 2022 |
| Ameren | Ameren
Missouri | | Ameren
Illinois | Ameren | Ameren
Missouri | Ameren
Illinois | | Ameren | Ameren
Missouri | | Ameren
Illinois | Ameren | Ameren
Missouri | Ameren
Illinois |
| Investing | | | | |
| Investing: | | Investing: | | | |
| Accrued capital expenditures | Accrued capital expenditures | $ | 345 | | $ | 194 | | | $ | 147 | | | $ | 271 | | $ | 141 | | $ | 139 | | Accrued capital expenditures | $ | 298 | | $ | 153 | | | $ | 138 | | | $ | 345 | | $ | 194 | | $ | 147 | |
| | Net realized and unrealized gain/(loss) – nuclear decommissioning trust fund | Net realized and unrealized gain/(loss) – nuclear decommissioning trust fund | (71) | | (71) | | | — | | | 22 | | 22 | | — | | Net realized and unrealized gain/(loss) – nuclear decommissioning trust fund | 54 | | 54 | | | — | | | (71) | | (71) | | — | |
| Financing | | | | |
Return of investment in industrial development revenue bonds(a) | | Return of investment in industrial development revenue bonds(a) | 240 | | 240 | | | — | | | — | | — | | — | |
| Financing: | | Financing: | | | |
| Issuance of common stock for stock-based compensation | Issuance of common stock for stock-based compensation | $ | 31 | | $ | — | | | $ | — | | | $ | 33 | | $ | — | | $ | — | | Issuance of common stock for stock-based compensation | $ | 37 | | $ | — | | | $ | — | | | $ | 31 | | $ | — | | $ | — | |
| Issuance of common stock under the DRPlus | Issuance of common stock under the DRPlus | 8 | | — | | | — | | | — | | — | | — | | Issuance of common stock under the DRPlus | 7 | | — | | | — | | | 8 | | — | | — | |
Termination of a financing obligation(a) | | Termination of a financing obligation(a) | 240 | | 240 | | | — | | | — | | — | | — | |
(a)In January 2023, Ameren Missouri and Audrain County mutually agreed to terminate a financing obligation agreement related to the CT energy center in Audrain County, which was scheduled to expire in December 2023. No cash was exchanged in connection with the termination of the agreement as the $240 million principal amount of the financing obligation due from Ameren Missouri was equal to the amount of bond service payments due to Ameren Missouri.
Asset Retirement Obligations
The following table provides a reconciliation of the beginning and ending carrying amount of AROs for the three months ended March 31, 2022:2023:
| | | | | | | | | | | | | | | | | | | | | | |
| Ameren
Missouri | | Ameren
Illinois | | | | Ameren | |
| Balance at December 31, 2021 | $ | 760 | | (a) | $ | 4 | | | | (b) | $ | 764 | | (a) |
| | | | | | | | |
| | | | | | | | |
| Accretion | 8 | | (c) | — | | | |
| 8 | | (c) |
| Change in estimates | 4 | | (d) | — | | | | | 4 | | (d) |
| Balance at March 31, 2022 | $ | 772 | | (a) | $ | 4 | | | | (b) | $ | 776 | | (a) |
| | | | | | | | | | | | | | | | | | | | | | |
| Ameren
Missouri | | Ameren
Illinois | | | | Ameren | |
| Balance at December 31, 2022 | $ | 782 | | (a) | $ | 4 | | | | (b) | $ | 786 | | (a) |
| | | | | | | | |
| Liabilities settled | (2) | | | — | | | | | (2) | | |
| Accretion | 8 | | (c) | — | | | |
| 8 | | (c) |
| | | | | | | | |
| Balance at March 31, 2023 | $ | 788 | | (a) | $ | 4 | | | | (b) | $ | 792 | | (a) |
(a)Balance included $7$23 million in “Other current liabilities” on the balance sheet as of both March 31, 2022,2023, and December 31, 2021.2022.
(b)Included in “Other deferred credits and liabilities” on the balance sheet.
(c)Accretion expense attributable to Ameren Missouri was recorded as a decrease to regulatory liabilities.
(d)Ameren Missouri changed its fair value estimate primarily due to the change in useful life of the Sioux Energy Center, as reflected in depreciation rates approved by the December 2021 electric rate order, which became effective in 2022.
Stock-based Compensation
In the first quarter of 2022,2023, Ameren granted 267,849265,422 performance share units with a grant date fair value of $25$24 million and 122,882116,701 restricted share units with a grant date fair value of $11$10 million. Awards vest approximately 3 years after the grant date or on a pro-rata basis upon death or eligible retirement. The performance share units vest based on the achievement of certain specified market performance measures (229,566(227,494 performance share units) or clean energy transition targets (38,283(37,928 performance share units). The exact number of shares issued pursuant to a performance share unit varies from 0% to 200% of the target award, depending on actual company performance relative to the performance goals.
For the three months ended March 31, 20222023 and 2021,2022, excess tax benefits associated with the settlement of stock-based compensation awards reduced income tax expense by $6 million and $5 million, in both periods.respectively.
Deferred Compensation
At March 31, 2022,2023, and December 31, 2021,2022, the present value of benefits to be paid for deferred compensation obligations was $91$85 million in both periods,and $87 million, respectively, which was primarily reflected in “Other deferred credits and liabilities” on Ameren'sAmeren’s consolidated balance sheet.
Operating Revenues
As of March 31, 20222023 and 2021,2022, our remaining performance obligations for contracts with a term greater than one year were immaterial. The Ameren Companies elected not to disclose the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied as of the end of the reporting period for contracts with an initial expected term of one year or less.
See Note 14 – Segment Information for disaggregated revenue information.
Excise Taxes
Ameren Missouri and Ameren Illinois collect from their customers excise taxes, including municipal and state excise taxes and gross receipts taxes that are levied on the sale or distribution of natural gas and electricity. The following table presents the excise taxes recorded on a gross basis in “Operating Revenues – Electric,” “Operating Revenues – Natural gas” and “Operating Expenses – Taxes other than income taxes” on the statements of income for the three months ended March 31, 20222023 and 2021:2022:
| | | | Three Months | | | Three Months |
| | | 2022 | | 2021 | | | 2023 | | 2022 |
| Ameren Missouri | Ameren Missouri | | $ | 34 | | | $ | 31 | | Ameren Missouri | | $ | 34 | | | $ | 34 | |
| Ameren Illinois | Ameren Illinois | | 45 | | | 39 | | Ameren Illinois | | 37 | | | 45 | |
| Ameren | Ameren | | $ | 79 | | | $ | 70 | | Ameren | | $ | 71 | | | $ | 79 | |
Earnings per Share
The following table reconciles the basic weighted-average number of common shares outstanding to the diluted weighted-average number of common shares outstanding for the three months ended March 31, 20222023 and 2021:2022:
| | | | Three Months | | | Three Months |
| | | 2022 | | 2021 | | | 2023 | | 2022 |
| | Weighted-average Common Shares Outstanding – Basic | Weighted-average Common Shares Outstanding – Basic | | 257.9 | | | 254.4 | | Weighted-average Common Shares Outstanding – Basic | | 262.2 | | | 257.9 | |
| Assumed settlement of performance share units and restricted stock units | Assumed settlement of performance share units and restricted stock units | | 1.1 | | | 1.5 | | Assumed settlement of performance share units and restricted stock units | | 0.9 | | | 1.1 | |
| Weighted-average Common Shares Outstanding – Diluted(a) | Weighted-average Common Shares Outstanding – Diluted(a) | | 259.0 | | | 255.9 | | Weighted-average Common Shares Outstanding – Diluted(a) | | 263.1 | | | 259.0 | |
|
(a)There was an immaterial number of anti-dilutive securitiesperformance share units excluded from the earnings per diluted share calculations for the three months ended March 31, 2023 and 2022. ThereThe outstanding forward sale agreements as of March 31, 2023, were no anti-dilutive securitiesand excluded from the earnings per diluted share calculations forcalculation as calculated using the three months ended March 31, 2021.treasury stock method.
NOTE 14 – SEGMENT INFORMATION
The following tables present revenues, net income attributable to common shareholders, and capital expenditures by segment at Ameren and Ameren Illinois for the three months ended March 31, 20222023 and 2021.2022. Ameren, Ameren Missouri, and Ameren Illinois management review segment capital expenditure information rather than any individual or total asset amount. For additional information about our segments, see Note 16 – Segment Information under Part II, Item 8, of the Form 10-K.
Ameren
| | | Ameren Missouri | | Ameren Illinois Electric Distribution | | Ameren Illinois Natural Gas | | Ameren Transmission | | Other | | Intersegment Eliminations | | Ameren | | | Ameren Missouri | | Ameren Illinois Electric Distribution | | Ameren Illinois Natural Gas | | Ameren Transmission | | Other | | Intersegment Eliminations | | Ameren | |
| | Three Months 2023: | | Three Months 2023: | |
| External revenues | | External revenues | $ | 913 | | | $ | 624 | | | $ | 391 | | | $ | 134 | | | $ | — | | | $ | — | | | $ | 2,062 | | |
| Intersegment revenues | | Intersegment revenues | 10 | | | — | | | — | | | 29 | | | — | | | (39) | | | — | | |
| Net income attributable to Ameren common shareholders | | Net income attributable to Ameren common shareholders | 28 | | | 61 | | | 87 | | | 71 | | (a) | 17 | | | — | | | 264 | | |
| Capital expenditures | | Capital expenditures | 481 | | | 170 | | | 51 | | | 213 | | | 3 | | | 13 | | | 931 | | |
| Three Months 2022: | Three Months 2022: | | Three Months 2022: | |
| External revenues | External revenues | $ | 808 | | | $ | 464 | | | $ | 481 | | | $ | 126 | | | $ | — | | | $ | — | | | $ | 1,879 | | | External revenues | $ | 808 | | | $ | 464 | | | $ | 481 | | | $ | 126 | | | $ | — | | | $ | — | | | $ | 1,879 | | |
| Intersegment revenues | Intersegment revenues | 10 | | | 1 | | | — | | | 20 | | | — | | | (31) | | | — | | | Intersegment revenues | 10 | | | 1 | | | — | | | 20 | | | — | | | (31) | | | — | | |
| Net income attributable to Ameren common shareholders | Net income attributable to Ameren common shareholders | 50 | | | 49 | | | 80 | | | 58 | | (a) | 15 | | | — | | | 252 | | | Net income attributable to Ameren common shareholders | 50 | | | 49 | | | 80 | | | 58 | | (a) | 15 | | | — | | | 252 | | |
| Capital expenditures | Capital expenditures | 414 | | | 138 | | | 49 | | | 172 | | | 2 | | | (1) | | | 774 | | | Capital expenditures | 414 | | | 138 | | | 49 | | | 172 | | | 2 | | | (1) | | | 774 | | |
| Three Months 2021: | | |
| External revenues | $ | 695 | | | $ | 411 | | | $ | 347 | | | $ | 113 | | | $ | — | | | $ | — | | | $ | 1,566 | | | |
| Intersegment revenues | 9 | | | — | | | — | | | 17 | | | — | | | (26) | | | — | | | |
| Net income attributable to Ameren common shareholders | 47 | | | 46 | | | 75 | | | 47 | | (a) | 18 | | | — | | | 233 | | | |
| Capital expenditures | 534 | | (b) | 157 | | | 48 | | | 141 | | | 1 | | | 6 | | | 887 | | (b) | |
(a)Ameren Transmission earnings reflect an allocation of financing costs from Ameren (parent).
(b)Includes $193 million at Ameren and Ameren Missouri for wind generation expenditures for the three months ended March 31, 2021.
Ameren Illinois
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ameren Illinois Electric Distribution | | Ameren Illinois Natural Gas | | Ameren Illinois Transmission | | Intersegment Eliminations | | Ameren Illinois |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Three Months 2022: | | | | | | | | | |
| External revenues | $ | 465 | | | $ | 481 | | | $ | 78 | | | $ | — | | | $ | 1,024 | |
| Intersegment revenues | — | | | — | | | 20 | | | (20) | | | — | |
| Net income available to common shareholder | 49 | | | 80 | | | 40 | | | — | | | 169 | |
| Capital expenditures | 138 | | | 49 | | | 155 | | | — | | | 342 | |
| Three Months 2021: | | | | | | | | | |
| External revenues | $ | 411 | | | $ | 347 | | | $ | 65 | | | $ | — | | | $ | 823 | |
| Intersegment revenues | — | | | — | | | 16 | | | (16) | | | — | |
| Net income available to common shareholder | 46 | | | 75 | | | 28 | | | — | | | 149 | |
| Capital expenditures | 157 | | | 48 | | | 132 | | | — | | | 337 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ameren Illinois Electric Distribution | | Ameren Illinois Natural Gas | | Ameren Illinois Transmission | | Intersegment Eliminations | | Ameren Illinois |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Three Months 2023: | | | | | | | | | |
| External revenues | $ | 624 | | | $ | 391 | | | $ | 86 | | | $ | — | | | $ | 1,101 | |
| Intersegment revenues | — | | | — | | | 28 | | | (28) | | | — | |
| Net income available to common shareholder | 61 | | | 87 | | | 50 | | | — | | | 198 | |
| Capital expenditures | 170 | | | 51 | | | 186 | | | — | | | 407 | |
| Three Months 2022: | | | | | | | | | |
| External revenues | $ | 465 | | | $ | 481 | | | $ | 78 | | | $ | — | | | $ | 1,024 | |
| Intersegment revenues | — | | | — | | | 20 | | | (20) | | | — | |
| Net income available to common shareholder | 49 | | | 80 | | | 40 | | | — | | | 169 | |
| Capital expenditures | 138 | | | 49 | | | 155 | | | — | | | 342 | |
The following tables present disaggregated revenues by segment at Ameren and Ameren Illinois for the three months ended March 31, 20222023 and 2021.2022. Economic factors affect the nature, timing, amount, and uncertainty of revenues and cash flows in a similar manner across customer classes. Revenues from alternative revenue programs have a similar distribution among customer classes as revenues from contracts with customers. Other revenues not associated with contracts with customers are presented in the Other customer classification, along with electric transmission, off-system sales, and off-systemcapacity revenues.
Ameren
| | | Ameren Missouri | | Ameren Illinois Electric Distribution | | Ameren Illinois Natural Gas | | Ameren Transmission | | | Intersegment Eliminations | | Ameren | | | Ameren Missouri | | Ameren Illinois Electric Distribution | | Ameren Illinois Natural Gas | | Ameren Transmission | | | Intersegment Eliminations | | Ameren | |
| | Three Months 2023: | | Three Months 2023: | | | |
| Residential | | Residential | $ | 324 | | | $ | 382 | | | $ | — | | | $ | — | | | | $ | — | | | $ | 706 | | |
| Commercial | | Commercial | 247 | | | 200 | | | — | | | — | | | | — | | | 447 | | |
| Industrial | | Industrial | 61 | | | 48 | | | — | | | — | | | | — | | | 109 | | |
| Other | | Other | 209 | | | (6) | | | — | | | 163 | | | | (38) | | | 328 | | |
| Total electric revenues | | Total electric revenues | $ | 841 | | | $ | 624 | | | $ | — | | | $ | 163 | | | | $ | (38) | | | $ | 1,590 | | |
| Residential | | Residential | $ | 52 | | | $ | — | | | $ | 296 | | | $ | — | | | | $ | — | | | $ | 348 | | |
| Commercial | | Commercial | 23 | | | — | | | 77 | | | — | | | | — | | | 100 | | |
| Industrial | | Industrial | 2 | | | — | | | 7 | | | — | | | | — | | | 9 | | |
| Other | | Other | 5 | | | — | | | 11 | | | — | | | | (1) | | | 15 | | |
| Total natural gas revenues | | Total natural gas revenues | $ | 82 | | | $ | — | | | $ | 391 | | | $ | — | | | | $ | (1) | | | $ | 472 | | |
Total revenues(a) | | Total revenues(a) | $ | 923 | | | $ | 624 | | | $ | 391 | | | $ | 163 | | | | $ | (39) | | | $ | 2,062 | | |
| Three Months 2022: | Three Months 2022: | | | | Three Months 2022: | | | |
| Residential | Residential | $ | 332 | | | $ | 263 | | | $ | — | | | $ | — | | | | $ | — | | | $ | 595 | | | Residential | $ | 332 | | | $ | 263 | | | $ | — | | | $ | — | | | | $ | — | | | $ | 595 | | |
| Commercial | Commercial | 240 | | | 158 | | | — | | | — | | | | — | | | 398 | | | Commercial | 240 | | | 158 | | | — | | | — | | | | — | | | 398 | | |
| Industrial | Industrial | 57 | | | 45 | | | — | | | — | | | | — | | | 102 | | | Industrial | 57 | | | 45 | | | — | | | — | | | | — | | | 102 | | |
| Other | Other | 109 | | | (1) | | | — | | | 146 | | | | (31) | | | 223 | | | Other | 109 | | | (1) | | | — | | | 146 | | | | (31) | | | 223 | | |
| Total electric revenues | Total electric revenues | $ | 738 | | | $ | 465 | | | $ | — | | | $ | 146 | | | | $ | (31) | | | $ | 1,318 | | | Total electric revenues | $ | 738 | | | $ | 465 | | | $ | — | | | $ | 146 | | | | $ | (31) | | | $ | 1,318 | | |
| Residential | Residential | $ | 51 | | | $ | — | | | $ | 369 | | | $ | — | | | | $ | — | | | $ | 420 | | | Residential | $ | 51 | | | $ | — | | | $ | 369 | | | $ | — | | | | $ | — | | | $ | 420 | | |
| Commercial | Commercial | 22 | | | — | | | 97 | | | — | | | | — | | | 119 | | | Commercial | 22 | | | — | | | 97 | | | — | | | | — | | | 119 | | |
| Industrial | Industrial | 2 | | | — | | | 17 | | | — | | | | — | | | 19 | | | Industrial | 2 | | | — | | | 17 | | | — | | | | — | | | 19 | | |
| Other | Other | 5 | | | — | | | (2) | | | — | | | | — | | | 3 | | | Other | 5 | | | — | | | (2) | | | — | | | | — | | | 3 | | |
| Total natural gas revenues | Total natural gas revenues | $ | 80 | | | $ | — | | | $ | 481 | | | $ | — | | | | $ | — | | | $ | 561 | | | Total natural gas revenues | $ | 80 | | | $ | — | | | $ | 481 | | | $ | — | | | | $ | — | | | $ | 561 | | |
Total revenues(a) | Total revenues(a) | $ | 818 | | | $ | 465 | | | $ | 481 | | | $ | 146 | | | | $ | (31) | | | $ | 1,879 | | | Total revenues(a) | $ | 818 | | | $ | 465 | | | $ | 481 | | | $ | 146 | | | | $ | (31) | | | $ | 1,879 | | |
| Three Months 2021: | | | | |
| Residential | $ | 312 | | | $ | 229 | | | $ | — | | | $ | — | | | | $ | — | | | $ | 541 | | | |
| Commercial | 216 | | | 132 | | | — | | | — | | | | — | | | 348 | | | |
| Industrial | 52 | | | 34 | | | — | | | — | | | | — | | | 86 | | | |
| Other | 61 | | | 16 | | | — | | | 130 | | | | (26) | | | 181 | | | |
| Total electric revenues | $ | 641 | | | $ | 411 | | | $ | — | | | $ | 130 | | | | $ | (26) | | | $ | 1,156 | | | |
| Residential | $ | 34 | | | $ | — | | | $ | 251 | | | $ | — | | | | $ | — | | | $ | 285 | | | |
| Commercial | 15 | | | — | | | 64 | | | — | | | | — | | | 79 | | | |
| Industrial | 1 | | | — | | | 14 | | | — | | | | — | | | 15 | | | |
| Other | 13 | | | — | | | 18 | | | — | | | | — | | | 31 | | | |
| Total natural gas revenues | $ | 63 | | | $ | — | | | $ | 347 | | | $ | — | | | | $ | — | | | $ | 410 | | | |
Total revenues(a) | $ | 704 | | | $ | 411 | | | $ | 347 | | | $ | 130 | | | | $ | (26) | | | $ | 1,566 | | | |
(a)The following table presents increases/(decreases) in revenues from alternative revenue programs and other revenues not from contracts with customers for the three months ended March 31, 20222023 and 2021:2022:
| | | Ameren Missouri | | Ameren Illinois Electric Distribution | | Ameren Illinois Natural Gas | | Ameren Transmission | | Ameren | | | Ameren Missouri | | Ameren Illinois Electric Distribution | | Ameren Illinois Natural Gas | | Ameren Transmission | | Ameren | |
| | Three Months 2023: | | Three Months 2023: | |
| Revenues from alternative revenue programs | | Revenues from alternative revenue programs | $ | (2) | | | $ | 64 | | | $ | 28 | | | $ | 8 | | | $ | 98 | | |
| Other revenues not from contracts with customers | | Other revenues not from contracts with customers | (6) | | (a) | 2 | | | 1 | | | — | | | (3) | | (a) |
| Three Months 2022: | Three Months 2022: | | Three Months 2022: | |
| Revenues from alternative revenue programs | Revenues from alternative revenue programs | $ | (6) | | | $ | 55 | | | $ | (5) | | | $ | 1 | | | $ | 45 | | | Revenues from alternative revenue programs | $ | (6) | | | $ | 55 | | | $ | (5) | | | $ | 1 | | | $ | 45 | | |
| Other revenues not from contracts with customers | Other revenues not from contracts with customers | — | | (a) | 2 | | | 1 | | | — | | | 3 | | (a) | Other revenues not from contracts with customers | — | | (a) | 2 | | | 1 | | | — | | | 3 | | (a) |
| | Three Months 2021: | | |
| Revenues from alternative revenue programs | $ | (10) | | | $ | 61 | | | $ | 3 | | | $ | (1) | | | $ | 53 | | | |
| Other revenues not from contracts with customers | (2) | | | 3 | | | 1 | | | — | | | 2 | | | |
|
(a)Includes insurance recoveries related to lost sales associated with the Callaway Energy Center maintenance outage. See Note 10 – Callaway Energy Center for additional information.net realized losses on derivative power contracts.
Ameren Illinois
| | | Ameren Illinois Electric Distribution | | Ameren Illinois Natural Gas | | Ameren Illinois Transmission | | Intersegment Eliminations | | Ameren Illinois | | | Ameren Illinois Electric Distribution | | Ameren Illinois Natural Gas | | Ameren Illinois Transmission | | Intersegment Eliminations | | Ameren Illinois | |
| | Three Months 2023: | | Three Months 2023: | |
| Residential | | Residential | $ | 382 | | | $ | 296 | | | $ | — | | | $ | — | | | $ | 678 | | |
| Commercial | | Commercial | 200 | | | 77 | | | — | | | — | | | 277 | | |
| Industrial | | Industrial | 48 | | | 7 | | | — | | | — | | | 55 | | |
| Other | | Other | (6) | | | 11 | | | 114 | | | (28) | | | 91 | | |
Total revenues(a) | | Total revenues(a) | $ | 624 | | | $ | 391 | | | $ | 114 | | | $ | (28) | | | $ | 1,101 | | |
| Three Months 2022: | Three Months 2022: | | Three Months 2022: | |
| Residential | Residential | $ | 263 | | | $ | 369 | | | $ | — | | | $ | — | | | $ | 632 | | | Residential | $ | 263 | | | $ | 369 | | | $ | — | | | $ | — | | | $ | 632 | | |
| Commercial | Commercial | 158 | | | 97 | | | — | | | — | | | 255 | | | Commercial | 158 | | | 97 | | | — | | | — | | | 255 | | |
| Industrial | Industrial | 45 | | | 17 | | | — | | | — | | | 62 | | | Industrial | 45 | | | 17 | | | — | | | — | | | 62 | | |
| Other | Other | (1) | | | (2) | | | 98 | | | (20) | | | 75 | | | Other | (1) | | | (2) | | | 98 | | | (20) | | | 75 | | |
Total revenues(a) | Total revenues(a) | $ | 465 | | | $ | 481 | | | $ | 98 | | | $ | (20) | | | $ | 1,024 | | | Total revenues(a) | $ | 465 | | | $ | 481 | | | $ | 98 | | | $ | (20) | | | $ | 1,024 | | |
| Three Months 2021: | | |
| Residential | $ | 229 | | | $ | 251 | | | $ | — | | | $ | — | | | $ | 480 | | | |
| Commercial | 132 | | | 64 | | | — | | | — | | | 196 | | | |
| Industrial | 34 | | | 14 | | | — | | | — | | | 48 | | | |
| Other | 16 | | | 18 | | | 81 | | | (16) | | | 99 | | | |
Total revenues(a) | $ | 411 | | | $ | 347 | | | $ | 81 | | | $ | (16) | | | $ | 823 | | | |
(a)The following table presents increases/(decreases) in revenues from alternative revenue programs and other revenues not from contracts with customers for the Ameren Illinois segments for the three months ended March 31, 20222023 and 2021:2022:
| | | Ameren Illinois Electric Distribution | | Ameren Illinois Natural Gas | | Ameren Illinois Transmission | | Ameren Illinois | | Ameren Illinois Electric Distribution | | Ameren Illinois Natural Gas | | Ameren Illinois Transmission | | Ameren Illinois |
| | Three Months 2023: | | Three Months 2023: | |
| Revenues from alternative revenue programs | | Revenues from alternative revenue programs | $ | 64 | | | $ | 28 | | | $ | 7 | | | $ | 99 | |
| Other revenues not from contracts with customers | | Other revenues not from contracts with customers | 2 | | | 1 | | | — | | | 3 | |
| | Three Months 2022: | Three Months 2022: | | Three Months 2022: | |
| Revenues from alternative revenue programs | Revenues from alternative revenue programs | $ | 55 | | | $ | (5) | | | $ | 1 | | | $ | 51 | | Revenues from alternative revenue programs | $ | 55 | | | $ | (5) | | | $ | 1 | | | $ | 51 | |
| Other revenues not from contracts with customers | Other revenues not from contracts with customers | 2 | | | 1 | | | — | | | 3 | | Other revenues not from contracts with customers | 2 | | | 1 | | | — | | | 3 | |
| | Three Months 2021: | | |
| Revenues from alternative revenue programs | $ | 61 | | | $ | 3 | | | $ | (1) | | | $ | 63 | | |
| Other revenues not from contracts with customers | 3 | | | 1 | | | — | | | 4 | | |
|
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
The following discussion should be read in conjunction with the financial statements contained in this Form 10-Q, as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors contained in the Form 10-K. We intend for this discussion to provide the reader with information that will assist in understanding our financial statements, the changes in certain key items in those financial statements, and the primary factors that accounted for those changes, as well as how certain accounting principles affect our financial statements. The discussion also provides information about the financial results of our business segments to provide a better understanding of how those segments and their results affect the financial condition and results of operations of Ameren as a whole. Also see the Glossary of Terms and Abbreviations at the front of this report and in the Form 10-K.
Ameren, headquartered in St. Louis, Missouri, is a public utility holding company whose primary assets are its equity interests in its subsidiaries. Ameren’s subsidiaries are separate, independent legal entities with separate businesses, assets, and liabilities. Dividends on Ameren’s common stock and the payment of expenses by Ameren depend on distributions made to it by its subsidiaries. Ameren’s principal subsidiaries are listed below. Ameren has other subsidiaries that conduct other activities, such as providing shared services.
•Union Electric Company, doing business as Ameren Missouri operates a rate-regulated electric generation, transmission, and distribution business and a rate-regulated natural gas distribution business in Missouri.
•Ameren Illinois Company, doing business as Ameren Illinois operates rate-regulated electric transmission, electric distribution, and natural gas distribution businesses in Illinois.
•ATXI operates a FERC rate-regulated electric transmission business in the MISO.
Ameren’s and Ameren Missouri’s financial statements are prepared on a consolidated basis and therefore include the accounts of their majority-owned subsidiaries. All intercompany transactions have been eliminated. Ameren Missouri’s subsidiaries were created for the ownership of renewable generation projects. Ameren Illinois has no subsidiaries. All tabular dollar amounts are in millions, unless otherwise indicated.
In addition to presenting results of operations and earnings amounts in total, we present certain information in cents per share. These amounts reflect factors that directly affect Ameren’s earnings. We believe this per share information helps readers to understand the impact of these factors on Ameren’s earnings per share.
OVERVIEW
Net income attributable to Ameren common shareholders in the three months ended March 31, 2022,2023, was $252$264 million, or $0.97$1.00 per diluted share, compared with $233$252 million, or $0.91$0.97 per diluted share, in the year-ago period. Net income for the three months ended March 31, 2022, compared to the year-ago period,2023, was favorably affected by increased rate base investments across all segments, and a higher recognized ROE at Ameren Illinois Electric Distribution,. Earnings and decreased other operations and maintenance expenses not subject to formula rates, riders, or trackers, including an increase in the cash surrender value of COLI. Net income for the three months ended March 31, 2022,2023, compared to the year-ago period, was also favorably affected by the absence in 2022 of the FERC’s March 2021 order, primarily related to the historical recovery of materials and supplies inventories, and increased retail electric sales volumes at Ameren Missouri, primarily resulting from colder temperatures experienced in 2022. Earnings for the three months ended March 31, 2022, compared towith the year-ago period, was unfavorably affected by increased other operations and maintenance expenses, primarily due to a reduction in the cash surrender value of company-owned life insurance and an increase due to the expiration of contracts relating to refined coal tax credits decreased electric retail sales at Ameren Missouri, primarily resulting from warmer winter temperatures experienced in 2021,2023, and increased financing costs from the issuance of long-term debt issuances,at Ameren Missouri and the effects of dilution.higher interest rates on short-term borrowings.
Ameren’s strategic plan includes investing and operating its utilities in a manner consistent with existingrate-regulated energy infrastructure, enhancing regulatory frameworks, enhancing those frameworks and advocating for responsible energypolicies, and economic policies, as well as creating and capitalizingoptimizing operating performance to capitalize on opportunities for investment for theto benefit of itsour customers, our shareholders, and the environment. Ameren remains focused on disciplined cost management and strategic capital allocation. Ameren invested $0.8$0.9 billion in its rate-regulated businesses in the three months ended March 31, 2022.2023.
In April 2023, Ameren Missouri, the MoPSC staff, the MoOPC, and certain intervenors filed a nonunanimous stipulation and agreement with the MoPSC to increase Ameren Missouri’s annual revenues for electric service by $140 million. The COVID-19 pandemic continues to affect our results of operations, financial position, and liquidity. While our electric sales volumes, excluding the estimated effects of weather and customer energy-efficiency programs, were comparableremaining intervenors did not object to the same period in 2021,agreement. The stipulation and total sales volume levels were comparableagreement, which is subject to pre-pandemic levels, there has been a shift in sales volumes by customer class, which began in 2020, withMoPSC approval, did not specify an increase in residential sales,allowed ROE, capital structure, rate base, or any rate base disallowances. The stipulation and a decrease in commercial and industrial sales. Theagreement includes the continued effectuse of the COVID-19 pandemicFAC and trackers for pension and postretirement benefits, uncertain income tax positions, certain excess deferred income taxes, and renewable energy standard costs that the MoPSC previously authorized in earlier electric rate orders, as well as the use of an electric property tax tracker. It also includes a tracker for future production and investment tax credits and proceeds from the sale of tax credits allowed under the IRA. A decision by the MoPSC on our results of operations, financial position,the nonunanimous stipulation and liquidityagreement is expected by June 2023, with new rates expected to take effect on July 1, 2023.
In April 2023, the MoPSC issued an order approving a requested CCN for the Boomtown Solar Project. In February 2023, the MoPSC issued an order approving a nonunanimous stipulation and agreement regarding a requested CCN for the Huck Finn Solar Project. In 2022, Ameren Missouri entered into an engineering, supply, and construction agreement to construct the Vandalia Solar Project, a 50-MW solar generation facility expected to be located in subsequent periods will depend on its severitycentral Missouri and longevity, future regulatory or legislative actions with respect thereto, andsupport Ameren Missouri’s transition to renewable generation. Ameren Missouri expects to construct the resulting impact on business, economic, and capital market conditions. We continueVandalia Solar Project after obtaining a CCN from the MoPSC, which it expects to assess the impacts the COVID-19 pandemic is having on our businesses, including impacts on electric and natural gas sales volumes, liquidity, bad debt expense, and supply chain operations. For further discussion of these and other matters discussed below, see Note 1 – Summary of Significant Accounting Policies and Note 2 – Rate and Regulatory Matters under Part I, Item 1, of this report, and Results of Operations, Liquidity and Capital Resources, and Outlook sections below.file by mid-2023.
In December 2021,March 2023, Ameren Missouri filed a motionproposed customer energy-efficiency plan with the United States District Court forMoPSC under the Eastern DistrictMEEIA. This filing proposed a three-year plan, which includes a portfolio of customer energy-efficiency programs, along with the continued use of the MEEIA rider, which allows Ameren Missouri to modify a September 2019 remedy order issuedcollect from, or refund to, customers any difference in actual MEEIA program costs and related lost electric margins and the amounts collected from customers. If the plan is approved, Ameren Missouri intends to invest $122 million annually in the proposed customer energy-efficiency programs from 2024 to 2026. In addition, Ameren Missouri requested performance incentives applicable to each plan year to earn additional revenues by the district court to allow the retirementachieving certain customer energy-efficiency and target spending goals. If 100% of the Rush Island Energy Center in advancegoals are achieved, Ameren Missouri would earn additional revenues totaling $55 million over the three-year plan. Ameren Missouri also requested additional performance incentives applicable to each plan year totaling up to $14 million over the three-year plan, if Ameren Missouri exceeds 100% of its previously expected useful life in lieu of installing a flue gas desulfurization system.the goals. The district courtMoPSC is under no deadline to issue a ruling revising the remedy order. In January 2022, the MISO completed a preliminary informational assessment regarding potential impacts of the retirement to the regional electric power system, which indicated transmission upgrades and voltage support would be needed in advance of the retirement of the Rush Island Energy Center to address reliability concerns. In February 2022, Ameren Missouri formally notified the MISO of its intent to retire the Rush Island Energy Center and requested the MISO to perform a final reliability assessment, which is expected to be completed in May 2022. The MISO must also separately approve the specific upgrades and transmission support required to address reliability concerns noted in the final assessment. Additionally, the MISO will determine whether reliability concerns require the Rush Island Energy Center to be classified as a system support resource, which should continue operating until the completion of to-be-specified transmission upgrades. If the Rush Island Energy Center were identified as a system support resource, an agreement detailing the manner of and time for continued operation would be filed with the FERC for approval. The district court has the authority to determine the retirement date and operating parameters for the Rush Island Energy Center and is not bound by the MISO determination or FERC’s approval. Related to this matter, in February 2022, the MoPSC issued an order directing the MoPSC staff to review Ameren Missouri’s planned accelerated retirement of the Rush Island Energy Center, including potential impacts on the reliability and cost of Ameren Missouri’s service to its customers, Ameren Missouri’s plans to mitigate the customer impacts of the accelerated retirement, and the prudence of Ameren Missouri’s actions and decisions with regard to the Rush Island Energy Center, among other things. In April 2022, the MoPSC staff filed an initial report with the MoPSC in which the staff concluded early retirement of the Rush Island Energy Center may cause reliability concerns. The MoPSC staff is under no deadline to complete this review. Ameren Missouri expects to seek approval from the MoPSC to finance the costs associated with the retirement, including the remaining unrecovered net plant balance associated with the facility, through the issuance of securitized utility tariff bonds pursuant to the Missouri securitization statute that became effective in August 2021. See Note 9 – Commitments and Contingencies under Part I, Item 1, of this report for additional information.proceeding.
In February 2022,2023, Ameren Missouri filed an update to its Smart Energy Plan with the MoPSC, which includes a five-year capital investment overview with a detailed one-year plan for 2022.2023. The plan is designed to upgrade Ameren Missouri’s electric infrastructure and includes investments that will upgrade the grid and accommodate more renewable energy. Investments under the plan are expected to total approximately $8.4$9.9 billion over the five-year period from 20222023 through 2026,2027, with expenditures largely recoverable under the PISA and the RESRAM. The plannedAmeren Missouri’s Smart Energy Plan excludes investments in its natural gas distribution business, as well as removal costs, net of salvage.
In April 2023, Ameren Illinois filed for a reconciliation adjustment to its 2022 electric distribution service revenue requirement with the ICC, requesting recovery of $127 million. The reconciliation adjustment reflects Ameren Illinois’ actual 2022 recoverable costs, year-end rate base, and capital structure, which was composed of 54% common equity. An ICC decision in this proceeding is required by December 2023, and any approved adjustment would be collected from customers in 2024.
In January 2023, Ameren Illinois filed an MYRP with the ICC to be used in setting electric distribution service rates for 2024 through 2026 are based on2027. Under the assumption that Ameren Missouri requests and receives MoPSC approval of an extension ofMYRP, the PISA from December 2023ICC would approve base rates for electric distribution service to December 2028.be charged to customers for each calendar year
of the four-year period. The following table includes the forecasted revenue requirement, the requested ROE, the requested capital structure common equity percentage, and the forecasted average annual rate base for 2024 through 2027, as reflected in Ameren Illinois’ MYRP:
| | | | | | | | | | | | | | |
| Year | Forecasted Revenue Requirement (in millions) | Requested ROE | Requested Capital Structure Common Equity Percentage(a) | Forecasted Average Annual Rate Base (in billions) |
| 2024 | $1,282 | 10.5% | 53.99% | $4.3 |
| 2025 | $1,373 | 10.5% | 53.97% | $4.6 |
| 2026 | $1,477 | 10.5% | 54.02% | $5.0 |
| 2027 | $1,556 | 10.5% | 54.03% | $5.3 |
(a)A capital structure of up to and including 50% common equity is deemed prudent and reasonable by law. A higher equity ratio requires specific ICC approval.
Under an MYRP, the IETL permits any initial rate increase to be phased in, with at least 50% of the first annual period’s approved rate increase reflected in rates in the first annual period, with the remaining portion deferred as a regulatory asset that earns a return at the applicable WACC and is collected from customers over a period not to exceed two years beginning within one year after the second annual period’s rates are effective. Ameren Illinois’ MYRP filing utilizes this phase-in provision and proposes to defer 50% of the requested 2024 rate increase of $171 million as a regulatory asset to be collected from customers in 2026. An ICC decision in this proceeding is required by December 2023, with new rates effective starting in January 2024.
In May 2022, Senate Bill 745 passedJanuary 2023, Ameren Illinois filed a request with the Missouri General AssemblyICC seeking approval to increase its annual revenues for natural gas delivery service by $160 million, which included an estimated $77 million of annual revenues that would otherwise be recovered under the QIP and was sentother riders. The request is based on a 10.7% allowed ROE, a capital structure composed of 53.99% common equity, and a rate base of $2.9 billion. In an attempt to the governor for approval. If enacted, among other things, the bill would extend the PISA election through December 2028 and allow for an additional five-year extension through December 2033 if requested byreduce regulatory lag, Ameren Missouri and approvedIllinois used a 2024 future test year in this proceeding.A decision by the MoPSC. In addition, a 2.5% limit on customer rate increases resulting from PISA deferrals would becomeICC in this proceeding is required by late November 2023, with new rates expected to be effective beginning in 2024. early December 2023.
For further information on the rate increase limitation effective through 2023,matters discussed above, see Note 2 – Rate and Regulatory Matters under Part II,I, Item 8,I, of the Form 10-K.
In January 2022, Ameren Illinois filed a request with the ICC proposing performance metrics that would be used in determining ROE incentives and penalties under an MYRP. The ICC is required to issue an order on this matter by September 30, 2022.
In April 2022, Ameren Illinois filed its annual electric distribution service performance-based formula rate update with the ICC to be used for 2023 rates, requesting an increase of $83 million. This update reflects an increase to the annual performance-based formula rate based on 2021 actual recoverable costs and expected net plant additions for 2022, an increase to include the 2021 revenue requirement reconciliation adjustment including a capital structure composed of 54% common equity, and a decrease for the conclusion of the 2020 revenue requirement reconciliation adjustment, which will be fully collected from customers in 2022, consistent with the ICC’s December 2021 annual update filing order. An ICC decision in this proceeding is required by December 2022, with new rates effective in January 2023.
In April 2022, Ameren Illinois filed a revised energy-efficiency plan with the ICC to invest approximately $120 million per year in electric energy-efficiency programs through 2025, which reflects the increased level of annual investments allowed under the IETL. The ICC has the ability to reduce the amount of electric energy-efficiency savings goals in future plan program years if there are insufficient cost-effective programs available, which could reduce the investments in electric energy-efficiency programs. The electric energy-efficiency program investmentsreport, and the return on those investments are collected from customers through a rider and are not recovered through the electric distribution service performance-based formula ratemaking framework. The ICC is under no deadline to issue an order in this proceeding.Outlook section below.
RESULTS OF OPERATIONS
Our results of operations and financial position are affected by many factors. Economic conditions, including those resulting from the COVID-19 pandemic discussed below, energy-efficiency investments by our customers and by us, technological advances, distributed generation, and the actions of key customers can significantly affect the demand for our services. Ameren and Ameren Missouri results are also affected by seasonal fluctuations in winter heating and summer cooling demands, as well as by energy center maintenance outages. Additionally, fluctuations in interest rates and conditions in the capital and credit markets affect our cost of borrowing, and our pension and postretirement benefits costs.costs, the cash surrender value of COLI, and the asset value of Ameren Missouri’s nuclear decommissioning trust fund. Almost all of Ameren’s revenues are subject to state or federal regulation. This regulation has a material impact on the rates we charge customers for our services. Our results of operations, financial position, and liquidity are affected by our ability to align our overall spending, both operating and capital, with the frameworks established by our regulators. See Note 2 – Rate and Regulatory Matters under Part I, Item 1, of this report and Note 2 – Rate and Regulatory Matters under Part II, Item 8, of the Form 10-K for additional information regarding Ameren Missouri’s, Ameren Illinois’, and ATXI’s regulatory mechanisms.
We continueare observing inflationary pressures on the prices of commodities, labor, services, materials, and supplies, as well as increasing interest rates. Ameren Missouri and Ameren Illinois are generally allowed to monitor the impacts of the COVID-19 pandemicpass on our businesses, including impacts on electricto customers prudently incurred costs for fuel, purchased power, and natural gas sales volumes, liquidity, supply chain operations,supply. Additionally, for certain non-commodity cost changes, the use of trackers, riders, and bad debt expense. Regarding uncollectible accounts receivable, Ameren Illinois’ electric distribution and natural gas distribution businesses have bad debt riders, which provide for recovery of bad debt write-offs, net of any subsequent recoveries. Ameren Missouri does not have a bad debt rider or tracker, and thus its earnings are exposed to increases in bad debt expense, absent regulatory relief. However, Ameren Missouri has not experienced and does not expect a material impact to earnings from increases in bad debt expense.formula ratemaking, as applicable, mitigates our exposure.
Ameren Missouri principally uses coal and enriched uranium for fuel in its electric operations and purchases natural gas for its customers. Ameren Illinois purchases power and natural gas for its customers. The prices for these commodities can fluctuate significantly because of the global economic and political environment, weather, supply, demand, and many other factors. We have natural gas cost recovery mechanisms for our Illinois and Missouri natural gas distribution businesses, a purchased power cost recovery mechanism for Ameren Illinois’ electric distribution business, and a FAC for Ameren Missouri’s electric business.
We employ various risk management strategies to reduce our exposure to commodity risk and other risks inherent in our business. The reliability of Ameren Missouri’s energy centers and our transmission and distribution systems, and the level and timing of operations and maintenance costs and capital investment, are key factors that we seek to manage in order to optimize our results of operations, financial position, and liquidity.
Earnings Summary
The following table presents a summary of Ameren’s earnings for the three months ended March 31, 20222023 and 2021:2022:
| | | | Three Months | | | Three Months |
| | | 2022 | | 2021 | | | 2023 | | 2022 |
| Net income attributable to Ameren common shareholders | Net income attributable to Ameren common shareholders | | $ | 252 | | | $ | 233 | | Net income attributable to Ameren common shareholders | | $ | 264 | | | $ | 252 | |
Earnings per common share – diluted | Earnings per common share – diluted | | 0.97 | | | 0.91 | | Earnings per common share – diluted | | 1.00 | | | 0.97 | |
Net income attributable to Ameren common shareholders increased $19$12 million, or 63 cents per diluted share, in the three months ended March 31, 2022, 2023, compared with the year-ago period. The increase was due to net income increases of $11$13 million, $5$12 million, $3$7 million, $3and $2 million at Ameren Transmission, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, Ameren Missouri, and Ameren Illinois Electric Distribution, respectively. These increases were partially offset by a $3 million decrease in the net income for activity not reported as part of a segment, primarily at Ameren (parent)., respectively. These earnings increases were partially offset by a $22 million net income decrease at Ameren Missouri.
Earnings per diluted share were favorably affected in the three months ended March 31, 2022,2023, compared to the year-ago period,, by:
•increased rate base investments at Ameren Transmission and Ameren Illinois Electric Distribution and a higher recognized ROE due to a higher estimated annual average of the monthly yields of the 30-year United States Treasury bonds at Ameren Illinois Electric Distribution, which increased revenues at these segments (4(7 cents per share);
•decreased other operations and maintenance expenses not subject to formula rates, riders, or trackers, including an increase in the cash surrender value of COLI (3 cents per share);
•decreased taxes other than income taxes, primarily at Ameren Missouri, largely resulting from employee retention tax credits received under the Coronavirus Aid, Relief, and Economic Security Act (2 cents per share);
•increased base rate revenues at Ameren Missouri for the inclusion of previously deferred interest charges pursuant to the December 2021 MoPSC electric rate order effective February 28, 2022, partially offset by increased interest charges resulting from lower deferrals related to infrastructure investments associated with the PISA and RESRAM (2 cents per share);
•increased other income, net, largely due to increased non-service cost components of net periodic benefit income not subject to formula rates or trackers (2 cents per share);
•increased base rate revenues at Ameren Missouri effective February 28, 2022, pursuant to the December 2021 MoPSC electric rate order, partially offset by the amortization of previously deferred depreciation expense under the PISA and RESRAM, financing costs otherwise recoverable under the PISA and RESRAM, a higher base level of expenses, and the net recovery for amounts associated with the reduction in sales volumes resulting from MEEIA programs (1 cent per share); and
•increased Ameren Illinois Natural Gas earnings from investments in qualifying infrastructure recovered under the QIP and higher base rates pursuant to the ICC's January 2021 natural gas rate order (3 cents per share);
•the absence in 2022 of the FERC’s March 2021 order, primarily related to the historical recovery of materials and supplies inventories, which decreased Ameren Transmission revenues in 2021 (3 cents per share);
•increased base rate revenues for the inclusion of previously deferred interest charges pursuant to the December 2021 MoPSC electric rate order and increased deferral of interest charges related to infrastructure investments associated with the PISA and RESRAM (3 cents per share); and
•increased electric retail sales at Ameren Missouri, primarily resulting from colder temperatures experienced in 2022 (estimated at 3 cents(1 cent per share).
Earnings per diluted share were unfavorably affected in the three months ended March 31, 2022,2023, compared to the year-ago period, by:
•increased other operations and maintenance expenses not subject to riders and trackers, primarily due to a reduction in the cash surrender value of company-owned life insurance and an increase due to the expiration of contracts relating to refined coal tax credits decreased electric retail sales at Ameren Missouri, primarily resulting from warmer winter temperatures experienced in 2021 (82023 (estimated at 10 cents per share);
•increased financing costs, primarily at Ameren (parent)Missouri and Ameren Missouri, largely(parent), due to higher long-term debt balances (2at Ameren Missouri and higher interest rates on short-term borrowings (4 cents per share); and
•increased weighted-average basic common shares outstanding resulting from issuances of common shares as detailed in Note 4 – Long-term Debt and Equity Financings under Part I, Item 1, of this report, and Note 5 – Long TermLong-term Debt and Equity Financings under Part II, Item 8, of the Form 10-K (1 cent(2 cents per share).
The cents per share variances above are presented based on the weighted-average basic common shares outstanding in the three months ended March 31, 2021,2022, and do not reflect the impact of dilution on earnings per share, unless otherwise noted. AmountsThe amounts above other than variances related to income taxes have been presented net of income taxes using Ameren’s 20222023 blended federal and state statutory tax rate of 26%. For additional details regarding the Ameren Companies’ results of operations, including explanations of Electric and Natural Gas Margins,Margins; Other Operations and Maintenance Expenses,Expenses; Depreciation and Amortization Expenses,Expenses; Taxes Other Than Income Taxes,Taxes; Other Income, Net,Net; Interest Charges,Charges; and Income Taxes, see the major headings below.
Below is Ameren’s table of income statement components by segment for the three months ended March 31, 20222023 and 2021:2022:
| | | Ameren
Missouri | | Ameren
Illinois
Electric
Distribution | | Ameren
Illinois
Natural Gas | | Ameren Transmission | | Other /
Intersegment
Eliminations | | Ameren | | Ameren
Missouri | | Ameren
Illinois
Electric
Distribution | | Ameren
Illinois
Natural Gas | | Ameren Transmission | | Other /
Intersegment
Eliminations | | Ameren |
| | Three Months 2023: | | Three Months 2023: | |
| Electric revenues | | Electric revenues | $ | 841 | | | $ | 624 | | | $ | — | | | $ | 163 | | | $ | (38) | | | $ | 1,590 | |
| Fuel | | Fuel | (113) | | | — | | | — | | | — | | | — | | | (113) | |
| Purchased power | | Purchased power | (208) | | | (315) | | | — | | | — | | | 28 | | | (495) | |
| Electric margins | | Electric margins | 520 | | | 309 | | | — | | | 163 | | | (10) | | | 982 | |
| Natural gas revenues | | Natural gas revenues | 82 | | | — | | | 391 | | | — | | | (1) | | | 472 | |
| Natural gas purchased for resale | | Natural gas purchased for resale | (47) | | | — | | | (161) | | | — | | | — | | | (208) | |
| Natural gas margins | | Natural gas margins | 35 | | | — | | | 230 | | | — | | | (1) | | | 264 | |
| Other operations and maintenance expenses | | Other operations and maintenance expenses | (239) | | | (129) | | | (59) | | | (16) | | | (5) | | | (448) | |
| Depreciation and amortization expenses | | Depreciation and amortization expenses | (176) | | | (84) | | | (26) | | | (33) | | | (1) | | | (320) | |
| Taxes other than income taxes | | Taxes other than income taxes | (80) | | | (18) | | | (23) | | | (2) | | | (4) | | | (127) | |
| Operating income (loss) | | Operating income (loss) | 60 | | | 78 | | | 122 | | | 112 | | | (21) | | | 351 | |
| Other income, net | | Other income, net | 19 | | | 24 | | | 8 | | | 6 | | | 21 | | | 78 | |
| Interest charges | | Interest charges | (51) | | | (21) | | | (13) | | | (22) | | | (20) | | | (127) | |
| Income (taxes) benefit | | Income (taxes) benefit | 1 | | | (20) | | | (30) | | | (25) | | | 37 | | | (37) | |
| Net income | | Net income | 29 | | | 61 | | | 87 | | | 71 | | | 17 | | | 265 | |
Noncontrolling interests – preferred stock dividends | | Noncontrolling interests – preferred stock dividends | (1) | | | — | | | — | | | — | | | — | | | (1) | |
| Net income attributable to Ameren common shareholders | | Net income attributable to Ameren common shareholders | $ | 28 | | | $ | 61 | | | $ | 87 | | | $ | 71 | | | $ | 17 | | | $ | 264 | |
| Three Months 2022: | Three Months 2022: | | Three Months 2022: | |
| Electric revenues | Electric revenues | $ | 738 | | | $ | 465 | | | $ | — | | | $ | 146 | | | $ | (31) | | | $ | 1,318 | | Electric revenues | $ | 738 | | | $ | 465 | | | $ | — | | | $ | 146 | | | $ | (31) | | | $ | 1,318 | |
| Fuel | Fuel | (176) | | | — | | | — | | | — | | | — | | | (176) | | Fuel | (176) | | | — | | | — | | | — | | | — | | | (176) | |
| Purchased power | Purchased power | (50) | | | (151) | | | — | | | — | | | 24 | | | (177) | | Purchased power | (50) | | | (151) | | | — | | | — | | | 24 | | | (177) | |
| Electric margins | Electric margins | 512 | | | 314 | | | — | | | 146 | | | (7) | | | 965 | | Electric margins | 512 | | | 314 | | | — | | | 146 | | | (7) | | | 965 | |
| Natural gas revenues | Natural gas revenues | 80 | | | — | | | 481 | | | — | | | — | | | 561 | | Natural gas revenues | 80 | | | — | | | 481 | | | — | | | — | | | 561 | |
| Natural gas purchased for resale | Natural gas purchased for resale | (46) | | | — | | | (247) | | | — | | | — | | | (293) | | Natural gas purchased for resale | (46) | | | — | | | (247) | | | — | | | — | | | (293) | |
| Natural gas margins | Natural gas margins | 34 | | | — | | | 234 | | | — | | | — | | | 268 | | Natural gas margins | 34 | | | — | | | 234 | | | — | | | — | | | 268 | |
| Other operations and maintenance expenses | Other operations and maintenance expenses | (232) | | | (147) | | | (63) | | | (16) | | | (3) | | | (461) | | Other operations and maintenance expenses | (232) | | | (147) | | | (63) | | | (16) | | | (3) | | | (461) | |
| Depreciation and amortization expenses | Depreciation and amortization expenses | (164) | | | (81) | | | (23) | | | (30) | | | (1) | | | (299) | | Depreciation and amortization expenses | (164) | | | (81) | | | (23) | | | (30) | | | (1) | | | (299) | |
| Taxes other than income taxes | Taxes other than income taxes | (85) | | | (20) | | | (31) | | | (2) | | | (4) | | | (142) | | Taxes other than income taxes | (85) | | | (20) | | | (31) | | | (2) | | | (4) | | | (142) | |
| Operating income (loss) | Operating income (loss) | 65 | | | 66 | | | 117 | | | 98 | | | (15) | | | 331 | | Operating income (loss) | 65 | | | 66 | | | 117 | | | 98 | | | (15) | | | 331 | |
| Other income, net | Other income, net | 23 | | | 16 | | | 4 | | | 3 | | | 14 | | | 60 | | Other income, net | 23 | | | 16 | | | 4 | | | 3 | | | 14 | | | 60 | |
| Interest charges | Interest charges | (39) | | | (18) | | | (11) | | | (22) | | | (14) | | | (104) | | Interest charges | (39) | | | (18) | | | (11) | | | (22) | | | (14) | | | (104) | |
| Income (taxes) benefit | Income (taxes) benefit | 2 | | | (15) | | | (30) | | | (21) | | | 30 | | | (34) | | Income (taxes) benefit | 2 | | | (15) | | | (30) | | | (21) | | | 30 | | | (34) | |
| Net income | Net income | 51 | | | 49 | | | 80 | | | 58 | | | 15 | | | 253 | | Net income | 51 | | | 49 | | | 80 | | | 58 | | | 15 | | | 253 | |
Noncontrolling interests – preferred stock dividends | Noncontrolling interests – preferred stock dividends | (1) | | | — | | | — | | | — | | | — | | | (1) | | Noncontrolling interests – preferred stock dividends | (1) | | | — | | | — | | | — | | | — | | | (1) | |
| Net income attributable to Ameren common shareholders | Net income attributable to Ameren common shareholders | $ | 50 | | | $ | 49 | | | $ | 80 | | | $ | 58 | | | $ | 15 | | | $ | 252 | | Net income attributable to Ameren common shareholders | $ | 50 | | | $ | 49 | | | $ | 80 | | | $ | 58 | | | $ | 15 | | | $ | 252 | |
| Three Months 2021: | | |
| Electric revenues | $ | 641 | | | $ | 411 | | | $ | — | | | $ | 130 | | | $ | (26) | | | $ | 1,156 | | |
| Fuel | (65) | | | — | | | — | | | — | | | — | | | (65) | | |
| Purchased power | (88) | | | (122) | | | — | | | — | | | 19 | | | (191) | | |
| Electric margins | 488 | | | 289 | | | — | | | 130 | | | (7) | | | 900 | | |
| Natural gas revenues | 63 | | | — | | | 347 | | | — | | | — | | | 410 | | |
| Natural gas purchased for resale | (31) | | | — | | | (134) | | | — | | | — | | | (165) | | |
| Natural gas margins | 32 | | | — | | | 213 | | | — | | | — | | | 245 | | |
| Other operations and maintenance expenses | (225) | | | (125) | | | (56) | | | (16) | | | 2 | | | (420) | | |
| Depreciation and amortization expenses | (156) | | | (75) | | | (22) | | | (28) | | | — | | | (281) | | |
| Taxes other than income taxes | (77) | | | (20) | | | (25) | | | (2) | | | (4) | | | (128) | | |
| Operating income (loss) | 62 | | | 69 | | | 110 | | | 84 | | | (9) | | | 316 | | |
| Other income, net | 23 | | | 8 | | | 3 | | | 3 | | | 9 | | | 46 | | |
| Interest charges | (39) | | | (18) | | | (10) | | | (23) | | | (10) | | | (100) | | |
| Income (taxes) benefit | 2 | | | (12) | | | (28) | | | (17) | | | 28 | | | (27) | | |
| Net income | 48 | | | 47 | | | 75 | | | 47 | | | 18 | | | 235 | | |
Noncontrolling interests – preferred stock dividends | (1) | | | (1) | | | — | | | — | | | — | | | (2) | | |
| Net income attributable to Ameren common shareholders | $ | 47 | | | $ | 46 | | | $ | 75 | | | $ | 47 | | | $ | 18 | | | $ | 233 | | |
Below is Ameren Illinois’ table of income statement components by segment for the three months ended March 31, 20222023 and 2021:2022:
| | | Ameren
Illinois
Electric
Distribution | | Ameren
Illinois
Natural Gas | | Ameren
Illinois Transmission | | Other /
Intersegment
Eliminations | | Ameren Illinois | | Ameren
Illinois
Electric
Distribution | | Ameren
Illinois
Natural Gas | | Ameren
Illinois Transmission | | Other /
Intersegment
Eliminations | | Ameren Illinois |
| | Three Months 2023: | | Three Months 2023: | |
| Electric revenues | | Electric revenues | $ | 624 | | | $ | — | | | $ | 114 | | | $ | (28) | | | $ | 710 | |
| Purchased power | | Purchased power | (315) | | | — | | | — | | | 28 | | | (287) | |
| Electric margins | | Electric margins | 309 | | | — | | | 114 | | | — | | | 423 | |
| Natural gas revenues | | Natural gas revenues | — | | | 391 | | | — | | | — | | | 391 | |
| Natural gas purchased for resale | | Natural gas purchased for resale | — | | | (161) | | | — | | | — | | | (161) | |
| Natural gas margins | | Natural gas margins | — | | | 230 | | | — | | | — | | | 230 | |
| Other operations and maintenance expenses | | Other operations and maintenance expenses | (129) | | | (59) | | | (14) | | | — | | | (202) | |
| Depreciation and amortization expenses | | Depreciation and amortization expenses | (84) | | | (26) | | | (23) | | | — | | | (133) | |
| Taxes other than income taxes | | Taxes other than income taxes | (18) | | | (23) | | | (1) | | | — | | | (42) | |
| Operating income (loss) | | Operating income (loss) | 78 | | | 122 | | | 76 | | | — | | | 276 | |
| Other income, net | | Other income, net | 24 | | | 8 | | | 5 | | | — | | | 37 | |
| Interest charges | | Interest charges | (21) | | | (13) | | | (13) | | | — | | | (47) | |
| Income taxes | | Income taxes | (20) | | | (30) | | | (18) | | | — | | | (68) | |
| | Net income attributable to common shareholder | | Net income attributable to common shareholder | $ | 61 | | | $ | 87 | | | $ | 50 | | | $ | — | | | $ | 198 | |
| Three Months 2022: | Three Months 2022: | | Three Months 2022: | |
| Electric revenues | Electric revenues | $ | 465 | | | $ | — | | | $ | 98 | | | $ | (20) | | | $ | 543 | | Electric revenues | $ | 465 | | | $ | — | | | $ | 98 | | | $ | (20) | | | $ | 543 | |
| Purchased power | Purchased power | (151) | | | — | | | — | | | 20 | | | (131) | | Purchased power | (151) | | | — | | | — | | | 20 | | | (131) | |
| Electric margins | Electric margins | 314 | | | — | | | 98 | | | — | | | 412 | | Electric margins | 314 | | | — | | | 98 | | | — | | | 412 | |
| Natural gas revenues | Natural gas revenues | — | | | 481 | | | — | | | — | | | 481 | | Natural gas revenues | — | | | 481 | | | — | | | — | | | 481 | |
| Natural gas purchased for resale | Natural gas purchased for resale | — | | | (247) | | | — | | | — | | | (247) | | Natural gas purchased for resale | — | | | (247) | | | — | | | — | | | (247) | |
| Natural gas margins | Natural gas margins | — | | | 234 | | | — | | | — | | | 234 | | Natural gas margins | — | | | 234 | | | — | | | — | | | 234 | |
| Other operations and maintenance expenses | Other operations and maintenance expenses | (147) | | | (63) | | | (13) | | | — | | | (223) | | Other operations and maintenance expenses | (147) | | | (63) | | | (13) | | | — | | | (223) | |
| Depreciation and amortization expenses | Depreciation and amortization expenses | (81) | | | (23) | | | (20) | | | — | | | (124) | | Depreciation and amortization expenses | (81) | | | (23) | | | (20) | | | — | | | (124) | |
| Taxes other than income taxes | Taxes other than income taxes | (20) | | | (31) | | | (2) | | | — | | | (53) | | Taxes other than income taxes | (20) | | | (31) | | | (2) | | | — | | | (53) | |
| Operating income (loss) | Operating income (loss) | 66 | | | 117 | | | 63 | | | — | | | 246 | | Operating income (loss) | 66 | | | 117 | | | 63 | | | — | | | 246 | |
| Other income, net | Other income, net | 16 | | | 4 | | | 4 | | | — | | | 24 | | Other income, net | 16 | | | 4 | | | 4 | | | — | | | 24 | |
| Interest charges | Interest charges | (18) | | | (11) | | | (13) | | | — | | | (42) | | Interest charges | (18) | | | (11) | | | (13) | | | — | | | (42) | |
| Income taxes | Income taxes | (15) | | | (30) | | | (14) | | | — | | | (59) | | Income taxes | (15) | | | (30) | | | (14) | | | — | | | (59) | |
| | Net income attributable to common shareholder | Net income attributable to common shareholder | $ | 49 | | | $ | 80 | | | $ | 40 | | | $ | — | | | $ | 169 | | Net income attributable to common shareholder | $ | 49 | | | $ | 80 | | | $ | 40 | | | $ | — | | | $ | 169 | |
| Three Months 2021: | | |
| Electric revenues | $ | 411 | | | $ | — | | | $ | 81 | | | $ | (16) | | | $ | 476 | | |
| Purchased power | (122) | | | — | | | — | | | 16 | | | (106) | | |
| Electric margins | 289 | | | — | | | 81 | | | — | | | 370 | | |
| Natural gas revenues | — | | | 347 | | | — | | | — | | | 347 | | |
| Natural gas purchased for resale | — | | | (134) | | | — | | | — | | | (134) | | |
| Natural gas margins | — | | | 213 | | | — | | | — | | | 213 | | |
| Other operations and maintenance expenses | (125) | | | (56) | | | (13) | | | — | | | (194) | | |
| Depreciation and amortization expenses | (75) | | | (22) | | | (18) | | | — | | | (115) | | |
| Taxes other than income taxes | (20) | | | (25) | | | (1) | | | — | | | (46) | | |
| Operating income (loss) | 69 | | | 110 | | | 49 | | | — | | | 228 | | |
| Other income, net | 8 | | | 3 | | | 3 | | | — | | | 14 | | |
| Interest charges | (18) | | | (10) | | | (14) | | | — | | | (42) | | |
| Income taxes | (12) | | | (28) | | | (10) | | | — | | | (50) | | |
| Net income | 47 | | | 75 | | | 28 | | | — | | | 150 | | |
| Preferred stock dividends | (1) | | | — | | | — | | | — | | | (1) | | |
| Net income attributable to common shareholder | $ | 46 | | | $ | 75 | | | $ | 28 | | | $ | — | | | $ | 149 | | |
Electric and Natural Gas Margins
Electric margins are defined as electric revenues less fuel and purchased power costs. Natural gas margins are defined as natural gas revenues less natural gas purchased for resale. We consider electric and natural gas margins useful measures to analyze the change in profitability of our electric and natural gas operations between periods. We have included the analysis below to complement the financial information we provide in accordance with GAAP. However, these margins may not be a presentation defined under GAAP, and they may not be comparable to other companies’ presentations or more useful than the GAAP information we provide elsewhere in this report.
| | | | | | | | | | | | | | |
| | | Increase (Decrease) by Segment | |
| Total by Segment(a) | | Overall Ameren Increase of $65$17 Million | |
(a)Includes other/intersegment eliminations of $(7)$(10) million and $(7) million in the three months ended March 31, 20222023 and 2021,2022, respectively.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Ameren Missouri | | | Ameren Illinois Electric Distribution | | Ameren Transmission | | | Other/Intersegment Eliminations | |
Natural Gas Margins
| | | | | | | | | | | | | | |
| | | Increase (Decrease) by Segment | |
| Total by Segment(b) | | Overall Ameren IncreaseDecrease of $23$4 Million | |
(b)Includes other/intersegment eliminations of $(1) million in the three months ended March 31, 2023.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Ameren Missouri | | | Ameren Illinois Natural Gas | | | Other/Intersegment Eliminations |
| | | | | | | | | |
The following tables present the favorable (unfavorable) variations by Ameren segment for electric and natural gas margins for the three months ended March 31, 2022,2023, compared with the year-ago period:
| | Electric and Natural Gas Margins | Electric and Natural Gas Margins | | Electric and Natural Gas Margins | |
| Three Months | Three Months | Ameren Missouri | | Ameren Illinois
Electric Distribution | | Ameren Illinois
Natural Gas | | Ameren Transmission(a) | | Other /Intersegment Eliminations | | Ameren | | Three Months | Ameren Missouri | | Ameren Illinois
Electric Distribution | | Ameren Illinois
Natural Gas | | Ameren Transmission(a) | | Other /Intersegment Eliminations | | Ameren | |
| Electric revenue change: | Electric revenue change: | | | Electric revenue change: | | |
Effect of weather (estimate)(b) | $ | 7 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 7 | | | |
Base rates (estimate)(c) | 18 | | | 19 | | | — | | | 16 | | | — | | | 53 | | | |
| Base rates (estimate)(b) | | Base rates (estimate)(b) | $ | 38 | | | $ | (4) | | | $ | — | | | $ | 17 | | | $ | — | | | $ | 51 | | |
Effect of weather (estimate)(c) | | Effect of weather (estimate)(c) | (33) | | | — | | | — | | | — | | | — | | | (33) | | |
| Sales volumes and changes in customer usage patterns (excluding the estimated effects of weather and MEEIA) | Sales volumes and changes in customer usage patterns (excluding the estimated effects of weather and MEEIA) | 4 | | | — | | | — | | | — | | | — | | | 4 | | | Sales volumes and changes in customer usage patterns (excluding the estimated effects of weather and MEEIA) | (7) | | | — | | | — | | | — | | | — | | | (7) | | |
| | Customer demand charges | | Customer demand charges | 2 | | | — | | | — | | | — | | | — | | | 2 | | |
| Off-system sales, capacity, and FAC revenues, net | Off-system sales, capacity, and FAC revenues, net | 52 | | | — | | | — | | | — | | | — | | | 52 | | | Off-system sales, capacity, and FAC revenues, net | 90 | | | — | | | — | | | — | | | — | | | 90 | | |
| Ameren Illinois energy-efficiency program investment revenues | Ameren Illinois energy-efficiency program investment revenues | — | | | 3 | | | — | | | — | | | — | | | 3 | | | Ameren Illinois energy-efficiency program investment revenues | — | | | 4 | | | — | | | — | | | — | | | 4 | | |
| Other | Other | (1) | | | — | | | — | | | — | | | — | | | (1) | | | Other | — | | | 3 | | | — | | | — | | | (3) | | | — | | |
Cost recovery mechanisms – offset in fuel and purchased power(d) | Cost recovery mechanisms – offset in fuel and purchased power(d) | 24 | | | 29 | | | — | | | — | | | (5) | | | 48 | | | Cost recovery mechanisms – offset in fuel and purchased power(d) | 12 | | | 164 | | | — | | | — | | | (4) | | | 172 | | |
Other cost recovery mechanisms(e) | Other cost recovery mechanisms(e) | (7) | | | 3 | | | — | | | — | | | — | | | (4) | | | Other cost recovery mechanisms(e) | 1 | | | (8) | | | — | | | — | | | — | | | (7) | | |
| Total electric revenue change | Total electric revenue change | $ | 97 | | | $ | 54 | | | $ | — | | | $ | 16 | | | $ | (5) | | | $ | 162 | | | Total electric revenue change | $ | 103 | | | $ | 159 | | | $ | — | | | $ | 17 | | | $ | (7) | | | $ | 272 | | |
| Fuel and purchased power change: | Fuel and purchased power change: | | | Fuel and purchased power change: | | |
| Energy costs (excluding the estimated effect of weather) | Energy costs (excluding the estimated effect of weather) | $ | (47) | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (47) | | | Energy costs (excluding the estimated effect of weather) | $ | (90) | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (90) | | |
Effect of weather (estimate)(b) | Effect of weather (estimate)(b) | (1) | | | — | | | — | | | — | | | — | | | (1) | | | Effect of weather (estimate)(b) | 7 | | | — | | | — | | | — | | | — | | | 7 | | |
| Effect of higher net energy costs included in base rates | Effect of higher net energy costs included in base rates | (1) | | | — | | | — | | | — | | | — | | | (1) | | | Effect of higher net energy costs included in base rates | (1) | | | — | | | — | | | — | | | — | | | (1) | | |
| | Other | | Other | 1 | | | — | | | — | | | — | | | — | | | 1 | | |
Cost recovery mechanisms – offset in electric revenue(d) | Cost recovery mechanisms – offset in electric revenue(d) | (24) | | | (29) | | | — | | | — | | | 5 | | | (48) | | | Cost recovery mechanisms – offset in electric revenue(d) | (12) | | | (164) | | | — | | | — | | | 4 | | | (172) | | |
| Total fuel and purchased power change | Total fuel and purchased power change | $ | (73) | | | $ | (29) | | | $ | — | | | $ | — | | | $ | 5 | | | $ | (97) | | | Total fuel and purchased power change | $ | (95) | | | $ | (164) | | | $ | — | | | $ | — | | | $ | 4 | | | $ | (255) | | |
| Net change in electric margins | Net change in electric margins | $ | 24 | | | $ | 25 | | | $ | — | | | $ | 16 | | | $ | — | | | $ | 65 | | | Net change in electric margins | $ | 8 | | | $ | (5) | | | $ | — | | | $ | 17 | | | $ | (3) | | | $ | 17 | | |
| Natural gas revenue change: | Natural gas revenue change: | | | Natural gas revenue change: | | |
| Effect of weather (estimate)(b) | | Effect of weather (estimate)(b) | $ | (9) | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (9) | | |
| Base rates (estimate) | Base rates (estimate) | $ | 1 | | | $ | — | | | $ | 3 | | | $ | — | | | $ | — | | | $ | 4 | | | Base rates (estimate) | 2 | | | — | | | — | | | — | | | — | | | 2 | | |
| Change in rate design | — | | | — | | | 1 | | | — | | | — | | | 1 | | | |
| QIP rider | — | | | — | | | 9 | | | — | | | — | | | 9 | | | |
| | QIP | | QIP | — | | | — | | | 3 | | | — | | | — | | | 3 | | |
| Other | Other | — | | | — | | | 2 | | | — | | | — | | | 2 | | | Other | — | | | — | | | — | | | — | | | (1) | | | (1) | | |
Cost recovery mechanisms – offset in natural gas purchased for resale(d) | Cost recovery mechanisms – offset in natural gas purchased for resale(d) | 15 | | | — | | | 113 | | | — | | | — | | | 128 | | | Cost recovery mechanisms – offset in natural gas purchased for resale(d) | 9 | | | — | | | (86) | | | — | | | — | | | (77) | | |
Other cost recovery mechanisms(e) | Other cost recovery mechanisms(e) | 1 | | | — | | | 6 | | | — | | | — | | | 7 | | | Other cost recovery mechanisms(e) | — | | | — | | | (7) | | | — | | | — | | | (7) | | |
| Total natural gas revenue change | Total natural gas revenue change | $ | 17 | | | $ | — | | | $ | 134 | | | $ | — | | | $ | — | | | $ | 151 | | | Total natural gas revenue change | $ | 2 | | | $ | — | | | $ | (90) | | | $ | — | | | $ | (1) | | | $ | (89) | | |
| Natural gas purchased for resale change: | Natural gas purchased for resale change: | | | Natural gas purchased for resale change: | | |
| Effect of weather (estimate)(b) | | Effect of weather (estimate)(b) | $ | 8 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 8 | | |
Cost recovery mechanisms – offset in natural gas revenue(d) | Cost recovery mechanisms – offset in natural gas revenue(d) | $ | (15) | | | $ | — | | | $ | (113) | | | $ | — | | | $ | — | | | $ | (128) | | | Cost recovery mechanisms – offset in natural gas revenue(d) | (9) | | | — | | | 86 | | | — | | | — | | | 77 | | |
| Total natural gas purchased for resale change | Total natural gas purchased for resale change | $ | (15) | | | $ | — | | | $ | (113) | | | $ | — | | | $ | — | | | $ | (128) | | | Total natural gas purchased for resale change | $ | (1) | | | $ | — | | | $ | 86 | | | $ | — | | | $ | — | | | $ | 85 | | |
| Net change in natural gas margins | Net change in natural gas margins | $ | 2 | | | $ | — | | | $ | 21 | | | $ | — | | | $ | — | | | $ | 23 | | | Net change in natural gas margins | $ | 1 | | | $ | — | | | $ | (4) | | | $ | — | | | $ | (1) | | | $ | (4) | | |
|
(a)Includes an increase in transmission margins of $17$16 million at Ameren Illinois for the three months ended March 31, 2022,2023, compared with the year-ago period.
(b)Represents the estimated variation resulting primarily from changes in cooling and heating degree-days on electric and natural gas demand compared with the year-ago period; this variation is based on temperature readings from the National Oceanic and Atmospheric Administration weather stations at local airports in our service territories.
(c)For Ameren Illinois Electric Distribution and Ameren Transmission, base rates include increases or decreases to operating revenues related to the revenue requirement reconciliation adjustment under formula rates. For Ameren Missouri, base rates exclude an increase for the recovery of lost electric margins resulting from the MEEIA customer energy-efficiency programs and an increasea decrease in base rates for RESRAM. These changes in Ameren Missouri base rates are included in the “Sales volumes and changes in customer usage patterns (excluding the estimated effects of weather and MEEIA)” and “Cost recovery mechanisms”mechanisms - offset in fuel and purchased power” line items, respectively.
(c)Represents the estimated variation resulting primarily from changes in cooling and heating degree-days on electric and natural gas demand compared with the year-ago period; this variation is based on temperature readings from the National Oceanic and Atmospheric Administration weather stations at local airports in our service territories.
(d)Electric and natural gas revenue changes are offset by corresponding changes in “Fuel,” “Purchased power,” and “Natural gas purchased for resale” on the statement of income, resulting in no change to electric and natural gas margins. Activity in Other/Intersegment Eliminations represents the elimination of related-party transactions between Ameren Missouri, Ameren Illinois, and ATXI, as well as Ameren Transmission revenue from transmission services provided to Ameren Illinois Electric Distribution. See Note 8 – Related-party Transactions and Note 14 – Segment Information under Part I, Item 1, of this report for additional information on intersegment eliminations.
(e)Offsetting expense increases or decreases are reflected in “Other operations and maintenance,” “Depreciation and amortization,” or in “Taxes other than income taxes,” within the “Operating Expenses” section and "Income Taxes" in the statement of income. These items have no overall impact on earnings.
Ameren
Ameren’s electric margins increased $65$17 million, or 7%2%, for the three months ended March 31, 2022,2023, compared with the year-ago period, due to increased margins at Ameren Transmission and Ameren Missouri, partially offset by decreased margins at Ameren Illinois Electric Distribution, and Ameren Transmission, as discussed below. Ameren’s natural gas margins increased $23decreased $4 million, or 9%1%, for the three months ended March 31, 2022,2023, compared with the year-ago period, primarily because of increaseddue to decreased margins at Ameren Illinois Natural Gas, as discussed below.
Ameren Transmission
Ameren Transmission’s margins increased $16$17 million, or 12%, for the three months ended March 31, 2022,2023, compared with the year-ago period. Base rate revenues were favorably affected by the absence in 2022 of the FERC’s March 2021 orderhigher recoverable expenses (+$711 million), and increased capital investment, investment (+$6 million), as evidenced by a 10% increasean 11% increase in rate base used to calculate the revenue requirement (+$5 million), and higher recoverable expenses (+$4 million). See Transmission Formula Rate Revisions in Note 2 – Rate and Regulatory Matters under Part I, Item 1, of this report for additional information regarding the March 2021 FERC order.requirement.
Ameren Missouri
Ameren Missouri’s electric margins increased $24$8 million, or 5%2%, for the three months ended March 31, 2022,2023, compared with the year-ago period. Revenues associated with “Cost recovery mechanisms – offset in fuel and purchased power” increased $24$12 million for the three months ended March 31, 2022. The increased revenues are fully offset by an increase in fuel and purchased power costs, which increased primarily2023, due to 2022changes in amortization of costs previously deferred under the FAC.FAC that were reflected in customer rates. The changes to “Cost recovery mechanisms - offset in fuel and purchased power” are fully offset by “Cost recovery mechanisms - offset in electric revenue,” in the table above, and result in no impact to margins. Ameren Missouri’s 5% exposure to net energy cost variances under the FAC is reflected within “Off-system sales, capacity, and FAC revenues, net” and “Energy costs (excluding(excluding the estimated effect of weather),” which was comparable between periods. The change in net energy costs is the sum of “Off-system sales, capacity and FAC revenues, net” (+$90 million) and “Energy costs (excluding the estimated effect of weather)” (-$90 million) in the table above. In the three months ended March 31, 2023, these revenues and costs increased primarily due to higher capacity prices, partially offset by the effect of decreased generation volumes. ”.Ameren Missouri sells nearly all of its capacity to the MISO and purchases the capacity it needs to supply its native load sales from the MISO.
Capacity revenues increased $154 million and capacity costs increased $149 million. Capacity revenues and costs increased as the capacity price set by the annual MISO auction in 2022 increased from $5 per MW-day to $237 per MW-day. The following items had a favorableApril 2021 MISO auction pricing was effective from June 2021 through May 2022, while the April 2022 MISO auction pricing established the annual rate beginning in June 2022. See Outlook for additional information related to the April 2022 MISO auction. These increases in capacity revenues and costs were partially offset by the effect on Ameren Missouri’s electric margins between periods:
•The December 2021 MoPSC electric rate order effective February 28, 2022, thatof lower market prices for power, which resulted in highera decrease in off-system sales and related fuel costs.
Higher electric base rates, excluding the change in base rates for the MEEIA customer energy efficiencyenergy-efficiency programs and the RESRAM, resulting from the December 2021 MoPSC electric rate order effective February 28, 2022, partially offset by higher net energy costs included in base rates, increased margins $17an estimated $37 million. for the three months ended March 31, 2023. The change in electric base rates is the sum of the change in “Base rates (estimate)” (+$1838 million) and the “Effect of higher net energy costs included in base rates” (-$1 million) in the table above.
The following items had an unfavorable effect on Ameren Missouri’s electric margins between periods:
•Winter temperatures were colderwarmer as heating degree days increased 1%decreased 18% for the three months ended March 31, 2022.2023. The aggregate effect of weather increaseddecreased margins an estimated $6 million.$26 million for the three months ended March 31, 2023. The change in margins due to weather is the sum of the “Effect of weather (estimate)” on electric revenues (+(-$7 million)33 million) and the “Effect of weather (estimate)” on fuel and purchased power (-$1 million) in the table above.
•Lower net energy costs increased margins $5 million. In 2021, the absence of the Callaway Energy Center generation and the significant increase in cost and customer demand caused by the extremely cold weather in February 2021 drove higher net energy costs resulting from Ameren Missouri’s 5% exposure to net energy cost variances from base rates under the FAC. The change in net energy costs is the sum of “Off-system sales, capacity and FAC revenues, net” (+$52 million) and “Energy costs (excluding the estimated effect of weather)” (-$477 million) in the table above.
•Excluding the estimated effects of weather and the MEEIA customer energy-efficiency programs, electric revenues increaseddecreased an estimated $4 million. The increase $7 million. This was primarily due to an increasea decrease in retail sales volumes and a decrease in the average retail price per kilowatthour duerelated to changes in customer usage patterns and shifts in commercial and industrial usage within rate classes.patterns.
Ameren Missouri’s other cost recovery mechanisms decreased margins $7 million primarily due to a reduction of recoverable MEEIA program costs.
Ameren Missouri’s natural gas margins were comparable between periods. Purchased gas costs increased $15$9 million for the three months ended March 31, 2023, due to 2022 amortization of natural gas costs previously deferred under the PGA, driven by a significant increase in cost and customer demand as result of the extremely cold weather in February 2021, partially offset by lower natural gas prices in 2022.mid-February 2021. The increased purchased natural gas costs are fully offset by an increase in natural gas revenues under the PGA, rider, resulting in no impact to margin. The increase in purchased natural gas cost is reflected in “Cost recovery mechanisms – offset in natural gas revenue” and the associated recoverability from customers is reflected in “Cost recovery mechanisms – offset in natural gas purchased for resale” in the table above.
Ameren Illinois
Ameren Illinois’ electric margins increased $42$11 million, or 11%3%, for the three months ended March 31, 2022,2023, compared with the year-ago period, driven by increased margins at Ameren Illinois Electric Distribution andTransmission, partially offset by decreased margins at Ameren Illinois Transmission.Electric Distribution. Ameren Illinois Natural Gas’ margins increased $21decreased $4 million, or 10%2%, for the three months ended March 31, 2022,2023, compared with the year-ago period.
the year-ago period.
Ameren Illinois Electric Distribution
Ameren Illinois Electric Distribution’s margins increased $25decreased $5 million,, or 9%2%, for the three months ended March 31, 2022,2023, compared with the year-ago period. Purchased power costs increased $29$164 million for the three months ended March 31, 2022,2023, primarily due to increased energy prices (+$97 million) largely reflecting the results of IPA procurement events, and increased capacity prices (+$44 million). In the three months ended March 31, 2023, capacity costs increased as the capacity price set by the annual MISO auction in 2022 increased from $5 per MW-day to $237 per MW-day. The April 2021 MISO auction pricing was effective from June 2021 through May 2022, while the April 2022 MISO auction pricing established the annual rate beginning in June 2022. See Outlook for additional information related to the April 2022 MISO auction. In addition to increased energy and capacity prices, higher volumes increased purchased power costs (+$17 million), primarily resultingdue to residential and small commercial customer switching from higheralternative retail electric prices. suppliers to Ameren Illinois’ supplied power. The increased purchased power costs are fully offset by an increase in electric revenues under the cost recovery mechanisms for purchased power, resulting in no impact to margin. The increase in purchased power cost is reflected in “Cost recovery mechanisms – offset in electric revenue” and the associated recoverability from customers is reflected in “Cost recovery mechanisms – offset in fuel and purchased power” in the table above.
The following items had a favorablean unfavorable effect on Ameren Illinois Electric Distribution’s margins between periods:
•Other cost recovery mechanisms decreased margins by $8 million, primarily due to a lower amount of bad debt costs included in customer rates pursuant to the associated rider.
•Base rates increaseddecreased margins by $4 million due to lower recoverable non-purchased power expenses (-$13 million), partially offset by a higher recognized ROE (+$26 million), as evidenced by an increase of 29115 basis points in the estimated annual average of the monthly yields of the 30-year United States Treasury bonds, and increased capital investment (+$23 million), as evidenced by a 6%an 8% increase in rate base used to calculate the revenue requirement, and higher recoverable non-purchased power expensesrequirement. (+$19 million), partially offset by
For the absence in 2022 of revenue requirement reconciliation adjustment true-ups (-$4 million). The sum of these changes collectivelythree months ended March 31, 2023, revenues increased margins $19 million.
•Revenues increased$3$4 million due to the recovery of and return on increased energy-efficiency program investments under performance-based formula ratemaking.
Ameren Illinois Natural Gas
Ameren Illinois Natural Gas’ margins increased $21decreased $4 million, or 10%2%, for the three months ended March 31, 2022,2023, compared with the year-ago period. Purchased gas costs increased $113decreased $86 million forfor the three months ended March 31, 2022,2023, primarily due to 2022lower amortization of natural gas costs that were previously deferred under the PGA driven by a significant increase in cost and customer demand as a result of the extremely cold weather in February 2021, partially offset by lower natural gas prices in 2023. Those deferred natural gas costs in 2022. related to the mid-February 2021 weather event were fully recovered from customers by the end of 2022. The increaseddecreased purchased natural gas costs are fully offset by an increasea decrease in natural gas revenues under the PGA, rider, resulting in no impact to margin. The increasedecrease in purchased natural gas cost is reflected in “Cost recovery mechanisms – offset in natural gas revenue” and the associated recoverability from customers is reflected in “Cost recovery mechanisms – offset in natural gas purchased for resale” in the table above.
The following items had a favorable effect on Ameren Illinois Natural Gas’ margins between periods:
• Other cost recovery mechanisms decreased revenues $7 million for the three months ended March 31, 2023, primarily due to decreased revenues for excise taxes. Revenues increased $9$3 million due to additional investment in qualified natural gas infrastructure under the QIP.
•Other cost recovery mechanisms increased revenues $6 million, primarily due to increased revenuesQIP for excise taxes.
•Revenues increased $3 million during January 2022 due to higher natural gas base rates as a result of the January 2021 natural gas rate order.three months ended March 31, 2023.
Ameren Illinois Transmission
Ameren Illinois Transmission’s margins increased $17$16 million, or 21%16%, for the three months ended March 31, 2022,2023, compared with the year-ago period. Base rate revenues were favorably affected by the absence in 2022 of the FERC’s March 2021 orderhigher recoverable expenses (+$79 million), and increased capital investment (+$57 million), as evidenced by a 16%17% increase in rate base used to calculate the revenue requirement, and higher recoverable expenses (+$5 million). See Transmission Formula Rate Revisions in Note 2 – Rate and Regulatory Matters under Part I, Item 1, of this report for additional information regarding the March 2021 FERC order.ement.
Other Operations and Maintenance Expenses
| | | | | | | | | | | | | | |
| | | Increase (Decrease) by Segment | |
| Total by Segment(a) | | Overall Ameren IncreaseDecrease of $41$13 Million | |
(a)Includes other/intersegment eliminations of $3$5 million and $(2)$3 million in the three months ended March 31, 20222023 and 2021,2022, respectively.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Ameren Missouri | | | Ameren Illinois Natural Gas | | | Other/Intersegment Eliminations |
| | | | | | | | | |
| | Ameren Illinois Electric Distribution | | Ameren Transmission | | | | |
Ameren
Other operations and maintenance expenses increased $41decreased $13 million in the three months ended March 31, 2022,2023, compared with the year-ago period. In additionperiod, due to changes by segments discussed below, other operations and maintenance expenses increased $5 million for activity not reported as part of a segment, as reflected in “Other/Intersegment Eliminations” above, primarily because of increased costs for support services.below.
Ameren Transmission
Other operations and maintenance expenses were comparable between periods.
Ameren Missouri
The $7 million increase in other operations and maintenance in the three months ended March 31, 2022, compared with the year-ago period, was primarily due to the following items:
•The absence in 2022 of $6 million service fees received from third parties under refined coal production agreements, as the result of the expiration of refined coal tax credits at the end of 2021.
•The cash surrender value of company-owned life insurance decreased $6 million, primarily because of unfavorable market returns in 2022.
•The absence of a $5 million deferral to a regulatory asset of certain costs previously incurred related to the COVID-19 pandemic, pursuant to the March 2021 MoPSC orders.
•Energy center operating costs, increased $3 million, primarily because of costs related to new wind generation facilities, which are recovered under the RESRAM.
The above increases were partially offset by a $13 million decrease in MEEIA customer energy-efficiency program spend as approved by the MoPSC, compared with the year-ago period.
Ameren Illinois
Other operations and maintenance expenses increased $29 million in the three months ended March 31, 2022, compared with the year-ago period, as discussed below. Other operations and maintenance expenses were comparable between periods at Ameren Illinois Transmission.
Ameren Illinois Electric Distribution
The $22 million increase in other operations and maintenance expenses in the three months ended March 31, 2022, compared with the year-ago period, was primarily due to the following items:
•Distribution system expenditures increased $10 million, primarily because of projects deferred in 2021 as a result of storm restoration efforts that were deferred as a regulatory asset in 2021.
•Increased bad debt expense of $5 million, primarily because of increased recovery of bad debt costs allowed by the ICC.
•The cash surrender value of company-owned life insurance decreased $3 million, primarily because of unfavorable market returns in 2022.
•Amortization of regulatory assets associated with customer energy-efficiency program investments under formula ratemaking increased $2 million.
Ameren Illinois Natural Gas
Other operations and maintenance expenses increased $7 million in the three months ended March 31, 2023, compared with the year-ago period, primarily due to the following items:
•Labor and benefit costs increased $6 million, primarily because of a higher base level of pension service costs reflected in electric service rates effective February 28, 2022,pursuant to the December 2021 MoPSC rate order.
•Transmission and distribution expenditures increased $5 million, primarily because of timing of system maintenance expenditures.
•MEEIA customer energy-efficiency program spend increased $4 million, as approved by the MoPSC.
The above increases were partially offset by a $9 million increase in the cash surrender value of COLI. In the three months ended March 31, 2023, the effect of changes in the cash surrender value of COLI was a gain of $3 million, compared with a loss of $6 million in the year-ago period.
Ameren Illinois
Other operations and maintenance expenses decreased $21 million in the three months ended March 31, 2023, compared with the year-ago period, as discussed below. Other operations and maintenance expenses were comparable at Ameren Illinois Transmission between periods.
Ameren Illinois Electric Distribution
Other operations and maintenance expenses decreased $18 million in the three months ended March 31, 2023, compared with the year-ago period primarily because of the following items:
•Bad debt costs decreased $13 million due to a lower amount of costs included in customer rates pursuant to the associated rider.
•Distribution system expenditures decreased $7 million, primarily because of disciplined cost management and timing of vegetation management expenses.
•The cash surrender value of COLI increased $4 million, primarily because of favorable market returns in 2023, compared with unfavorable market returns in the year-ago period.
The above decreases were partially offset by a $3 million increase in the amortization of regulatory assets associated with customer energy-efficiency program investments under formula ratemaking.
Ameren Illinois Natural Gas
Other operations and maintenance expenses decreased $4 million in the three months ended March 31, 2023, compared with the year-ago period, primarily because of a $4$2 million increase in distribution system expenditures, related to higher labor and contract service costs. Other operations and maintenance expenses also increased $2 million, primarily because of a decrease in the cash surrender value of company-owned life insurance becauseCOLI. In the three months ended March 31, 2023, the effect of unfavorable market returnschanges in 2022. These increases were partially offset bythe cash surrender value of COLI was a $2gain of $1 million, reductioncompared with a loss of $1 million in costs recovered through riders.
Depreciation and Amortization Expenses
| | | | | | | | | | | | | | |
| | | Increase by Segment | |
| Total by Segment(a) | | Overall Ameren Increase of $18$21 Million | |
(a)Includes other/intersegment eliminations of $1 million and $—$1 million in the three months ended March 31, 20222023 and 2021,2022, respectively.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Ameren Missouri | | | Ameren Illinois Natural Gas | | | Other/Intersegment Eliminations |
| | | | | | | | | |
| | Ameren Illinois Electric Distribution | | Ameren Transmission | | | | |
Depreciation and amortization expenses increased $18$21 million, $9$12 million, and $8$9 million in the three months ended March 31, 2022,2023, compared with the year-ago period, at Ameren, Ameren Illinois,Missouri, and Ameren Missouri,Illinois, respectively, primarily because of additional property, plant, and equipment investments across their respective segments. Ameren’s and Ameren Missouri’s depreciation and amortization expenses for the three months ended March 31, 2023, compared with the year-ago period, were affected by the following, which include the effect of the additional investments at Ameren Missouri:
•Depreciation and amortization rate changes effective February 28, 2022, pursuant to the December 2021 MoPSC electric rate order, which increased depreciation and amortization expenses by $11 million.
•Increased depreciation and amortization expenses of $11 million for amounts previously deferred under the PISA and RESRAM and subsequently reflected in base rates effective February 28, 2022, pursuant to the December 2021 MoPSC electric rate order, largely due to investments in wind generation.
•The absence in 2023 of 2022 deferrals and increased amortization of Meramec Energy Center retirement costs increased depreciation and amortization expenses by $8 million pursuant to the December 2021 MoPSC electric rate order, which established a five-year recovery period for certain Meramec Energy Center costs beginning February 28, 2022.
•Depreciation and amortization at Ameren and Ameren Missouri reflected a deferral to a regulatory asset of depreciation and amortization expenses pursuant to the PISA and the RESRAM. The PISA and RESRAM deferrals of depreciation and amortization were $24 million and $19 million for the three months ended March 31, 2022 and 2021, respectively. The amount of depreciation and amortization expenses included in base rates for PISA and RESRAM deferrals was updated when new customer rates became effective on February 28, 2022, pursuant to the December 2021 MoPSC electric rate order, which incorporated deferrals through September 30, 2021. Lower deferrals, due to the inclusion in base rates of depreciation and amortization associated with certain property, plant, and equipment previously deferred under the PISA and RESRAM, increased depreciation and amortization expenses by $8 million.
50•The retirement of the Meramec Energy Center in December 2022, which decreased depreciation and amortization expenses by $14 million.
Table•The net under-recovery of ContentsRESRAM eligible expenses decreased depreciation and amortization expenses by $13 million.
Taxes Other Than Income Taxes
| | | | | | | | | | | | | | |
| | | Increase (Decrease) by Segment | |
| Total by Segment(a) | | Overall Ameren IncreaseDecrease of $14$15 Million | |
(a)Includes $2 million and $2 million at Ameren Transmission in the three months ended March 31, 20222023 and 2021,2022, respectively, and other/intersegment eliminations of $4 million and $4 million in the three months ended March 31, 20222023 and 2021,2022, respectively.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Ameren Missouri | | | Ameren Illinois Natural Gas | | | Other/Intersegment Eliminations |
| | | | | | | | | |
| | Ameren Illinois Electric Distribution | | Ameren Transmission | | | | |
Taxes other than income taxes increased $14decreased $15 million in the three months ended March 31, 2022,2023, compared with the year-ago period, primarily because of $6a $7 million and $3 million increasesdecrease in excise taxes at Ameren Illinois Natural Gas, and Ameren Missouri, respectively, primarily because of increasedresulting from decreased sales. Taxes other than income taxes also increased $4decreased $5 million at Ameren Missouri because of increased property taxes, primarily resulting from propertyemployee retention tax refundscredits received in 2021.under the Coronavirus Aid, Relief, and Economic Security Act.
Other Income, Net
| | | | | | | | | | | | | | |
| | | Increase (Decrease) by Segment | |
| Total by Segment(a) | | Overall Ameren Increase of $14$18 Million | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Ameren Missouri | | | Ameren Illinois Natural Gas | | | Other/Intersegment Eliminations |
| | | | | | | | | |
| | Ameren Illinois Electric Distribution | | Ameren Transmission | | | | |
Other income, net, increased $14$18 million in the three months ended March 31, 2022,2023, compared with the year-ago period, primarily because of increases in the non-service cost component of net periodic benefit income of $5$8 million, $4$7 million, and $2$3 million for Ameren Illinois Electric Distribution, activity not reported as part of a segment, Ameren Illinois Electric Distribution, and Ameren Illinois Natural Gas, respectively. Other income, net, also increased because of a $2 million increase in the equity portion of allowance for funds used during construction for Ameren Transmission. These increases in other income, net, were partially offset by a $5 million decrease in interest income on industrial development revenue bonds at Ameren Missouri, as these bonds were settled in December 2022 and January 2023.
See Note 5 – Other Income, Net, under Part I, Item 1, of this report for additional information. See Note 11 – Retirement Benefits under Part I, Item 1, of this report for more information on the non-service cost components of net periodic benefit income.
Interest Charges
| | | | | | | | | | | | | | |
| | | Increase (Decrease) by Segment | |
| Total by Segment | | Overall Ameren Increase of $4$23 Million | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Ameren Missouri | | | Ameren Illinois Natural Gas | | | Other/Intersegment Eliminations |
| | | | | | | | | |
| | Ameren Illinois Electric Distribution | | Ameren Transmission | | | | |
Interest charges increased $4$23 million in the three months ended March 31, 2022,2023, compared with the year-ago period, primarily because of issuances of long-term debt at Ameren (parent) in March and November of 2021. the following items:
•Interest charges at Ameren and Ameren Missouri reflected a deferral to a regulatory asset of interest charges pursuant to PISA and RESRAM. The PISA and RESRAM deferrals of interest charges were $18 million and $15 million for the three months ended March 31, 2022 and 2021, respectively. A reduction in interest charges related to the increase in PISA and RESRAM deferrals at Ameren Missouri was offset by the issuance of long-term debt at Ameren Missouri in June 2021, which increased interest charges by $3 million. The amount of interest charges included in base rates for PISA and RESRAM deferrals was updated when new customer rates became effective on February 28, 2022, pursuant to the December 2021 MoPSC electric rate order, which incorporated deferrals through September 30, 2021. Lower deferrals, due to the inclusion in base rates of interest associated with certain property, plant, and equipment previously deferred under the PISA and RESRAM, increased interest charges by $9 million.
•Issuances of long-term debt at Ameren Missouri in April 2022 and March 2023 collectively increased interest charges by $6 million.
•Interest charges increased $6 million and $5 million at Ameren (parent) and Ameren Missouri, respectively, because of higher interest rates on increased levels of short-term borrowings.
•Issuances of long-term debt at Ameren Illinois Electric Distribution in August and November 2022 collectively increased interest charges by $4 million.
The following items partially offset the above increases in interest charges:
•Interest charges decreased $5 million at Ameren Missouri because of an increase in the allowance for borrowed funds, primarily due to increased eligible construction work in process balances and a higher applicable borrowing rate.
•Interest charges decreased $5 million at Ameren Missouri, primarily due to the termination of a financing obligation agreement related to the CT energy center in Audrain County.
See Note 3 – Short-term Debt and Liquidity under Part I, Item 1, of this report and the Long-term Debt and Equity section below for additional information on short-term borrowings and long-term debt, respectively. See Note 4 – Long-term Debt and Equity Financings under Part I, Item 1, of this report for additional information on the termination of the financing obligation agreement.
Income Taxes
The following table presents effective income tax rates for the three months ended March 31, 20222023 and 2021:2022:
| | | | Three Months(a) | | | | Three Months(a) |
| | | 2022 | | 2021 | | | | 2023 | | 2022 |
| Ameren | Ameren | | | 12 | % | | 10 | % | Ameren | | | 12 | % | | 12 | % |
| Ameren Missouri | Ameren Missouri | | | (4) | % | | (4) | % | Ameren Missouri | | | (4) | % | | (4) | % |
| Ameren Illinois | Ameren Illinois | | | 26 | % | | 25 | % | Ameren Illinois | | | 25 | % | | 26 | % |
| Ameren Illinois Electric Distribution | Ameren Illinois Electric Distribution | | | 24 | % | | 22 | % | Ameren Illinois Electric Distribution | | | 24 | % | | 24 | % |
| Ameren Illinois Natural Gas | Ameren Illinois Natural Gas | | | 27 | % | | 27 | % | Ameren Illinois Natural Gas | | | 26 | % | | 27 | % |
| Ameren Illinois Transmission | Ameren Illinois Transmission | | | 26 | % | | 25 | % | Ameren Illinois Transmission | | | 26 | % | | 26 | % |
| Ameren Transmission | Ameren Transmission | | | 27 | % | | 27 | % | Ameren Transmission | | | 26 | % | | 27 | % |
|
(a)Estimate of the annual effective income tax rate adjusted to reflect the tax effect of items discrete to the three months ended March 31, 20222023 and 2021.2022.
See Note 12 – Income Taxes under Part I, Item 1, of this report for a reconciliation of the federal statutory corporate income tax rate to the effective income tax rate for the Ameren Companies.
The effective income tax rate was higher at Ameren Illinois Electric Distribution in the three months ended March 31, 2022, compared with the year-ago period, primarily because of lower amortization of excess deferred taxes.
LIQUIDITY AND CAPITAL RESOURCES
Collections from our tariff-based revenues are our principal source of cash provided by operating activities. A diversified retail customer mix, primarily consisting of rate-regulated residential, commercial, and industrial customers, provides us with a reasonably predictable source of cash. In addition to using cash provided by operating activities, we use available cash, drawings under committed credit agreements, commercial paper issuances, and/or, in the case of Ameren Missouri and Ameren Illinois, short-term affiliate borrowings to support normal operations and temporary capital requirements. We may reduce our short-term borrowings with cash provided by operations or, at our discretion, with long-term borrowings, or, in the case of Ameren Missouri and Ameren Illinois, with capital contributions from Ameren (parent). As of March 31, 2022,2023, there have been no material changes other than in the ordinary course of business related to cash requirements arising from these long-term commitments provided in Item 7 of the Form 10-K for the year ended December 31, 2021.10-K.
We expect to make significant capital expenditures over the next five years, supported by a combination of long-term debt and equity, as we invest in our electric and natural gas utility infrastructure to support overall system reliability, grid modernization, renewable energy target requirements, environmental compliance, and other improvements. For additional information about our long-term debt outstanding, including maturities due within one year, and the applicable interest rates, see Note 5 – Long-term Debt and Equity Financings under Part II, Item 8 of the Form 10-K and Note 4 – Long-term Debt and Equity Financings under Part I, Item 1, of this report. As part of its funding plan for capital expenditures, Ameren is using newly issued shares of common stock, rather than market-purchased shares, to satisfy requirements under the DRPlus and employee benefit plans and expects to continue to do so through at least 2026.2027. Ameren expects these equity issuances to provide equity oftotal about $100 million annually. In addition, in 2021, Ameren establishedhas an ATM program under which Ameren may offer and sell from time to time up to $750 million of its common stock, which includes the ability to enter into forward sales agreements, subject to market conditions and other factors. There were no shares issued under the ATM program for the three months ended March 31, 2022.2023. As of April 30, 2023, Ameren has entered into multiple forward sale agreements under the ATM program with various counterparties relating to 3.43.8 million shares of common stock. Ameren expects to settle approximately $300 million of the forward sale agreements with physical delivery of 3.2 million shares of common stock by December 31, 2022.2023. Also, Ameren plans to issue approximately $300$500 million of equity each year from 20222024 to 20262027, in addition to issuances under the DRPlus and employee benefit plans. As of March 31, 2023, Ameren had approximately $980 million of common stock available for sale under the ATM program, which takes into account the forward sale agreements in effect as of March 31, 2023. Ameren expects its equity to total capitalization ratio to be approximatelyabout 45% through December 31, 2026,2027, with the long-term intent to support solid investment-grade credit ratings. See Long-term Debt and Equity below and Note 4 – Long-term Debt and Equity Financings under Part I, Item 1, of this report for additional information on the ATM program, including the forward sale agreements under the ATM program relating to common stock.
The use of cash provided by operating activities and short-term borrowings to fund capital expenditures and other long-term investments at the Ameren Companies frequently results in a working capital deficit, defined as current liabilities exceeding current assets, as was the case at March 31, 2022,2023, for Ameren Ameren Missouri, and Ameren Illinois. With the credit capacity available under the Credit Agreements, and cash and cash equivalents, Ameren (parent), Ameren Missouri, and Ameren Illinois, collectively, had net available liquidity of $1.2$1.4 billion at March 31, 2022.2023. Additionally, as of March 31, 2023, Ameren could have settled the forward sale agreements with physical delivery of 3.4 million shares of common stock to the respective counterparties in exchange for cash of $317 million. See Credit Facility Borrowings and Liquidity and Long-term Debt and Equity below for additional information.
The following table presents net cash provided by (used in) operating, investing, and financing activities for the three months ended March 31, 2023 and 2022:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Cash Provided By
Operating Activities | | Net Cash Used In
Investing Activities | | Net Cash Provided By
Financing Activities |
| 2023 | | 2022 | | Variance | | 2023 | | 2022 | | Variance | | 2023 | | 2022 | | Variance |
| Ameren | $ | 496 | | (a) | $ | 388 | | (a) | $ | 108 | | | $ | (964) | | | $ | (780) | | | $ | (184) | | | $ | 489 | | | $ | 391 | | | $ | 98 | |
| | | | | | | | | | | | | | | | | |
| Ameren Missouri | 153 | | | 56 | | | 97 | | | (513) | | | (417) | | | (96) | | | 358 | | | 362 | | | (4) | |
| Ameren Illinois | 373 | | (a) | 342 | | (a) | 31 | | | (407) | | | (342) | | | (65) | | | 60 | | | 4 | | | 56 | |
(a)Both Ameren and Ameren Illinois’ cash provided by operating activities included cash outflows of $25 million and $16 million for the FEJA electric energy-efficiency rider and $2 million and $3 million for the customer generation rebate program for the three months ended March 31, 2023 and 2022, and 2021:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Cash Provided By (Used In)
Operating Activities | | Net Cash Used In
Investing Activities | | Net Cash Provided By
Financing Activities |
| 2022 | | 2021 | | Variance | | 2022 | | 2021 | | Variance | | 2022 | | 2021 | | Variance |
| Ameren | $ | 388 | | | $ | (35) | | | $ | 423 | | | $ | (780) | | | $ | (889) | | | $ | 109 | | | $ | 391 | | | $ | 795 | | | $ | (404) | |
| | | | | | | | | | | | | | | | | |
| Ameren Missouri | 56 | | | (51) | | | 107 | | | (417) | | | (398) | | | (19) | | | 362 | | | 316 | | | 46 | |
| Ameren Illinois | 342 | | | 13 | | | 329 | | | (342) | | | (337) | | | (5) | | | 4 | | | 326 | | | (322) | |
Cash Flows from Operating Activities
Our cash provided by operating activities is affected by fluctuations of trade accounts receivable, inventories, and accounts and wages payable, among other things, as well as the unique regulatory environment for each of our businesses. Substantially all expenditures related to fuel, purchased power, and natural gas purchased for resale are recovered from customers through rate adjustment mechanisms, which may be adjusted without a traditional regulatory rate proceeding.review, subject to prudence reviews. Similar regulatory mechanisms exist for certain other operating expenses that can also affect the timing of cash provided by operating activities. The timing of cash payments for costs recoverable under our regulatory mechanisms differs from the recovery period of those costs. Additionally, the seasonality of our electric and natural gas businesses, primarily caused by seasonal customer rates and changes in customer demand due to weather, such as increased demand resulting from the extremely cold weather in mid-February 2021, significantly affects the amount and timing of our cash provided by operating activities.
Ameren
Ameren’s cash provided by operating activities increased $423 million in the first three months of 2022, compared with the year-ago period. The following items contributed to the increase:
•A $471 million increase resulting from increased customer collections and decreased expenditures under the PGA and FAC, primarily asAs a result of the significant increase fromin customer demand and prices for natural gas and electricity experienced in mid-February 2021 due to extremely cold weather, Ameren Missouri and a net increase attributable to other regulatory recover mechanisms. See Outlook below for additional information about the extension of the collection periodAmeren Illinois had under-recovered costs for the month of February 2021 under their PGA relatedclauses and, for Ameren Missouri, under the FAC (Ameren Missouri – PGA $53 million, FAC $50 million; Ameren Illinois – PGA $221 million). Ameren Missouri’s PGA under-recovery is being collected from customers over 36 months beginning November 2021, pursuant to an October 2021 MoPSC order, and the FAC under-recovery was collected over eight months beginning October 2021. Ameren Illinois collected the PGA under-recovery over 18 months beginning April 2021.
Ameren
Ameren’s cash provided by operating activities increased $108 million in the first three months of 2023, compared with the year-ago period. The following items contributed to the extremely cold weather in mid-February 2021.increase:
•A $41$143 million decrease in the cost of natural gas held in storage, primarily at Ameren Illinois, because of higher prices as a result of extremely cold winter weather in mid-February 2021.
•A $15 million decrease in major storm restoration costs at Ameren Illinois, primarily due to a January 2021 storm.
The following items partially offset the increase in Ameren’s cash from operating activities between periods:
•A $25 million increase in net collateral posted with counterparties, primarily due to changes in the market prices of power, natural gas, and other fuels.
•A $15$10 million decrease in the cost of natural gas held in storage, primarily at Ameren Illinois, because of lower prices.
•An $8 million increase resulting from increased customer collections, primarily from base rate increases effective February 28, 2022 pursuant to Ameren Missouri’s December 2021 electric rate order, partially offset by a decrease under Ameren Illinois’ PGA resulting from the recovery in 2022 of costs for the mid-February 2021 weather event discussed above and a decrease attributable to other regulatory mechanisms.
The following items partially offset the increase in Ameren’s cash from operating activities between periods:
•A $33 million increase in coal inventory levels at Ameren Missouri, primarily due to fewer transportation delays and less coal burned in 2023 as a result of lower off-system sales driven by lower market power prices and decreased retail load because of warmer winter temperatures.
•An $11 million increase in purchases of materials and supplies inventories to support operations as levels were increased to mitigate against potential supply disruptions.
•An $11 million increase in interest payments, primarily due to an increase in the average outstanding debt.debt and an increase in interest rates.
•A $14 million decrease resulting from an increase in coal inventory levels at Ameren Missouri, as less coal was purchased in 2021 due to service-related delivery disruptions.
•A $12$9 million increase in property tax payments at Ameren Missouri, primarily due to higher assessed property tax values.
•A $10 million increase in payments for certain cloud computing arrangements.
Ameren Missouri
Ameren Missouri’s cash provided by operating activities increased $107$97 million in the first three months of 2022,2023, compared with the year-ago period,period. The following items contributed to the increase:
•A $112 million decrease in net collateral posted with counterparties, primarily as a result of a $181 million increase from higher customer collections and decreased expenditures under the FAC and PGA due to changes in the significant increase from customer demand andmarket prices forof power, natural gas, and electricity experienced in mid-Februaryother fuels.
•A $35 million increase resulting from increased customer collections primarily from base rate increases effective February 28, 2022 pursuant to the December 2021 due to extremely cold weather, andelectric rate order, partially offset by a net increasedecrease attributable to other regulatory recovery mechanisms. See Outlook below for additional information about the extension of the collection period for the PGA related to the extremely cold weather in mid-February 2021.
The following items partially offset the increase in Ameren Missouri’s cash from operating activities between periods:
•A $33 million increase in net collateral posted with counterparties,coal inventory levels, primarily due to changesfewer transportation delays and less coal burned in the2023 as a result of lower off-system sales driven by lower market power prices and decreased retail load because of power, natural gas, and other fuels.warmer winter temperatures.
•A $14$12 million decrease resulting from an increase in coal inventorypurchases of materials and supplies inventories to support operations as levels as less coal was purchased in 2021 duewere increased to service-related deliverymitigate against potential supply disruptions.
•A $12$9 million increase in property tax payments, primarily due to higher assessed property tax values.
•A $9 million increase in interest payments, primarily due to an increase in the average outstanding debt.
•A $7 million increase in payments for certain cloud computing arrangements.
Ameren Illinois
Ameren Illinois’ cash provided by operating activities increased $329$31 million in the first three months of 2022,2023, compared with the year-ago period. The following items contributed to the increase:
•A $289$31 million increase resulting from increased customer collections and decreased expenditures under the PGA,decrease in net collateral posted with counterparties, primarily as a result of the significant increase from customer demand and prices for natural gas and electricity experienced in mid-February due to extremely cold weatherchanges in the market prices of power and a net increase attributable to other regulatory recover mechanisms. See Outlook below for additional information about the extension of the collection period for the PGA related to the extremely cold weather in mid-February 2021.natural gas.
•A $39$10 million decrease in the cost of natural gas held in storage because of higher prices as a result of extremely cold winter weather in mid-February 2021.
•A $15 million decrease in major storm restoration costs, primarily due to a January 2021 storm.
•An $8 million increase in net collateral received from counterparties, primarily due to changes in the market prices of natural gas.lower prices.
The increase in Ameren Illinois’ cash from operating activities between periods was partially offset by an $8a $22 million decrease in customer collections, primarily because of a decrease under the PGA resulting from the recovery in 2022 of costs for the mid-February 2021 weather event discussed above, partially offset by a net increase in payments for certain cloud computing arrangements.attributable to other regulatory recovery mechanisms.
Cash Flows from Investing Activities
Ameren’s cash used in investing activities decreased $109increased $184 million during the first three months of 2022,2023, compared with the year-ago period, primarily as a result of a $113$157 million decreaseincrease in capital expenditures, largely resulting from a reduction inincreased expenditures related to wind generation assetsfor electric transmission and distribution infrastructure upgrades at Ameren Missouri and Ameren Illinois. In addition, in 2022, Ameren Missouri received $17 million in insurance proceeds for the Callaway Energy Center’s generator. The decrease in Ameren’s cash used in investing activities was partially offset by a $15 million increase due to the timing of nuclear fuel expenditures at Ameren Missouri.
Ameren Missouri’s cash used in investing activities increased $19$96 million during the first three months of 2022,2023, compared with the year-ago period, primarily as a result of a $139$67 million return of net money pool advances in the year-ago period, and a $15 million increase due to the timing of nuclear fuel expenditures. This increase was partially offset by a $120 million decrease in capital expenditures, primarilylargely resulting from a reductionincreased expenditures for electric transmission and distribution infrastructure upgrades. In addition, in expenditures related to wind generation assets, and2022, Ameren Missouri received $17 million in insurance proceeds for the Callaway Energy Center’s generator.
Ameren Illinois’ cash used in investing activities increased $5$65 million during the first three months of 2022,2023, compared with the year-ago period, as a result of a $5$65 million increase in capital expenditures.expenditures, largely resulting from increased expenditures for electric transmission and distribution infrastructure upgrades.
Cash Flows from Financing Activities
Cash provided by, or used in, financing activities is a result of our financing needs, which depend on the level of cash provided by operating activities, the level of cash used in investing activities, the level of dividends, and our long-term debt maturities, among other things. Due to extremely cold winter weather in mid-February 2021, Ameren Missouri and Ameren Illinois experienced higher than anticipated commodity costs for natural gas purchased for resale and purchased power, which contributed to the acceleration of the timing of certain planned 2021 debt issuances.
Ameren’s cash provided by consolidated financing activities decreased $404increased $98 million during the first three months of 2022,2023, compared with the year-ago period. During the first three months of 2023, Ameren utilized proceeds from the issuance of long-term debt of $499 million for capital expenditures and to repay then-outstanding short-term debt. In addition, during the first three months of 2023, Ameren utilized proceeds from net commercial paper issuances of $179 million along with cash provided by operating activities to fund, in part, capital expenditures. In comparison, during the first three months of 2022, Ameren utilized proceeds from net commercial paper issuances of $555 million along with cash provided by operating activities to fund, in part, investing activities. In addition, Ameren received aggregate cash proceeds of $5 million from the issuance of common stock under the DRPlus and the 401(k) plan. In comparison, during the first three months of 2021, Ameren utilized proceeds from the issuance of $450 million of long-term debt for general corporate purposes, including to repay then-outstanding short-term debt, and to fund, in part, investing activities. Ameren also utilized proceeds from net commercial paper issuances of $399 million and cash on hand to fund operating activities, including increased purchases in natural gas for resale and purchased power costs as a result of the significant increase in customer demand and prices for natural gas and electricity experienced in mid-February 2021 due to extremely cold weather, and to fund, in part, investing activities. In addition, Ameren received aggregate cash proceeds of $125 million from the settlement of the remaining portion of the forward sale agreement of common stock and the issuance of common stock under the DRPlus and the 401(k) plan.capital expenditures. During the first three months of 2022,2023, Ameren paid common stock dividends of $152$165 million, compared with $140$152 million in the year-ago period, as a result of an increase in both the dividend rate and the number of common shares outstanding.
Ameren Missouri’s cash provided by financing activities increased $46 million duringwas comparable between periods. During the first three months of 2022, compared with2023, Ameren Missouri utilized proceeds from the year-ago period.issuance of long-term debt of $499 million for capital expenditures and to repay then-outstanding short-term debt. During the first three months of 2023, Ameren Missouri repaid net commercial paper borrowings totaling $132 million. In comparison, during the first three months of 2022, Ameren Missouri utilized net proceeds from net commercial paper issuances of $363 million and cash provided by operating activities to fund, in part, investing activities. In comparison, during the first three monthscapital expenditures.
Ameren Illinois’ cash provided by financing activities decreased $322increased $56 million during the first three months of 2022,2023, compared with the year-ago period. During the first three months of 2021,2023, Ameren Illinois utilized proceeds from net commercial paper issuances of $323$60 million to fundand cash provided by operating activities including increased purchases in natural gas for resale and purchased power costs as a result of the significant increase in customer demand and prices for natural gas and electricity experienced in mid-February 2021 due to extremely cold weather, and to fund, in part, investing activities. Ameren Illinois also received a $40capital expenditures, compared to $4 million capital contribution from Ameren (parent) duringin such proceeds in the first three months of 2021. In addition, Ameren repaid $19 million of money pool borrowings and redeemed $13 million of preferred stock during the first three months of 2021.year-ago period.
See Long-term Debt and Equity in this section for additional information on maturities and issuances of long-term debt, issuances of common stock, and redemptionsnoncash settlement of preferred stock.a financing obligation.
Credit Facility Borrowings and Liquidity
The following table presents Ameren’s consolidated liquidity as of March 31, 2022:2023:
| | | | | | | | | |
| | | | | Available at March 31, 20222023 |
Ameren (parent) and Ameren Missouri: | | | | | |
Missouri Credit Agreement – borrowing capacity | | | | | $ | 1,2001,400 | |
| | | | | |
| Less: Ameren (parent) commercial paper outstanding | | | | | 300428 | |
| Less: Ameren Missouri commercial paper outstanding | | | | | 528197 | |
| | | | | |
| Less: Ameren Missouri letters of credit | | | | | 21 | |
| Missouri Credit Agreement – subtotal | | | | | 370774 | |
| Ameren (parent) and Ameren Illinois: | | | | | |
Illinois Credit Agreement – borrowing capacity | | | | | 1,1001,200 | |
| | | | | |
| Less: Ameren (parent) commercial paper outstanding | | | | | 166299 | |
| Less: Ameren Illinois commercial paper outstanding | | | | | 107324 | |
| | | | | |
| | | | | |
Illinois Credit Agreement – subtotal | | | | | 827577 | |
| Subtotal | | | | | $ | 1,1971,351 | |
| Add: Cash and cash equivalents | | | | | 710 | |
Net Available Liquidity(a) | | | | | $ | 1,2041,361 | |
(a)Does not include Ameren’s forward equity sale agreements. See Note 4 – Long-term Debt and Equity Financings under Part I, Item 1, of this report for additional information.
The Credit Agreements, among other things, provide $2.3$2.6 billion of credit until maturity in December 2025.2027. See Note 3 – Short-term Debt and Liquidity under Part I, Item 1, of this report for additional information on the Credit Agreements. During the three months ended March 31, 2022,2023, Ameren (parent), Ameren Missouri, and Ameren Illinois each issued commercial paper. Borrowings under the Credit Agreements and commercial paper issuances are based upon available interest rates at thatthe time of the borrowing or issuance.
Ameren has a money pool agreement with and among its utility subsidiaries to coordinate and to provide for certain short-term cash and working capital requirements. As short-term capital needs arise, and based on availability of funding sources, Ameren Missouri and Ameren Illinois will access funds from the utility money pool, the Credit Agreements, or the commercial paper programs depending on which option has the lowest interest rates.
See Note 3 – Short-term Debt and Liquidity under Part I, Item 1, of this report for additional information on credit agreements, commercial paper issuances, Ameren’s money pool arrangements and related borrowings, and relevant interest rates.
The issuance of short-term debt securities by Ameren’s utility subsidiaries is subject to FERC approval under the Federal Power Act. In March 2022,January 2023, the FERC issued an orderorders authorizing Ameren Missouri, Ameren Illinois, and ATXI to issue up to $1 billion, $1 billion, and $300 million, respectively, of short-term debt securities through March 2024. In 2020, the FERC issued an order authorizing Ameren Illinois to issue up to $1 billion of short-term debt securities through September 2022. In 2021, the FERC issued an order authorizing ATXI to issue up to $300 million of short-term debt securities, which expires in July 2023.January 2025.
The Ameren Companies continually evaluate the adequacy and appropriateness of their liquidity arrangements for changing business conditions. When business conditions warrant, changes may be made to existing credit agreements or to other borrowing arrangements, or other arrangements may be made.
Long-term Debt and Equity
The following table presents Ameren’s issuances (net of any issuance premiums or discounts) of long-term debt and equity, redemptionsas well as maturities of preferred stocklong-term debt for the three months ended March 31, 20222023 and 2021:2022:
| | | | | | | | | | | | | | | | | | | | |
| Month Issued, Redeemed, or Matured | | 2022 | | 2021 | |
| Issuances of Long-term Debt | | | | | | |
| Ameren: | | | | | | |
| 1.75% Senior unsecured notes due 2028 | March | | $ | — | | | $ | 450 | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Total Ameren long-term debt issuances | | | $ | — | | | $ | 450 | | |
| Issuances of Common Stock | | | | | | |
| Ameren: | | | | | | |
DRPlus and 401(k) (a) | Various | | $ | 5 | | (b) | $ | 12 | | |
August 2019 forward sale agreement (c) | February | | — | | | 113 | | |
| | | | | | |
Total Ameren common stock issuances (d) | | | $ | 5 | | | $ | 125 | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Redemptions of Preferred Stock | | | | | | |
| Ameren Illinois: | | | | | | |
| 6.625% Series | March | | $ | — | | | $ | 12 | | |
| 7.75% Series | March | | — | | | 1 | | |
| Total Ameren Illinois preferred stock redemptions | | | $ | — | | | $ | 13 | | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Month Issued, Redeemed, or Matured | | 2023 | | 2022 | |
| Issuances of Long-term Debt | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Ameren Missouri: | | | | | | |
| 5.45% First mortgage bonds due 2053 | March | | 499 | | | — | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Total Ameren long-term debt issuances | | | $ | 499 | | | $ | — | | |
| Issuances of Common Stock | | | | | | |
| Ameren: | | | | | | |
DRPlus and 401(k)(a)(b) | Various | | $ | 5 | | | $ | 5 | | |
| | | | | | |
| | | | | | |
Total Ameren common stock issuances(c) | | | $ | 5 | | | $ | 5 | | |
| | | | | | |
| Maturities of Long-term Debt | | | | | | |
| Ameren Missouri: | | | | | | |
| Audrain County agreement (Audrain County CT) due 2023 | January | | $ | 240 | | (d) | $ | — | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Total Ameren long-term debt maturities | | | $ | 240 | | | $ | — | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
(a)Ameren issued a total of 0.1 million and 0.1 million shares of common stock under its DRPlus and 401(k) plan in the three months ended March 31, 20222023 and 2021,2022, respectively.
(b)Excludes ana $7 million and $8 million receivable at March 31, 2023 and 2022, respectively.
(c)Ameren issued 1.6 million shares of common stock to settle the remainder of the August 2019 forward sale agreement.
(d)Excludes 0.40.5 million and 0.50.4 million shares of common stock valued at $31$37 million and $33$31 million issued for no cash consideration in connection with stock-based compensation for the three months ended March 31, 2023 and 2022, respectively.
(d)In January 2023, Ameren Missouri and 2021, respectively.Audrain County mutually agreed to terminate a financing obligation agreement related to the CT energy center in Audrain County, which was scheduled to expire in December 2023. No cash was exchanged in connection with the termination of the agreement as the $240 million principal amount of the financing obligation due from Ameren Missouri was equal to the amount of bond service payments due to Ameren Missouri.
See Note 4 – Long-term Debt and Equity Financings under Part I, Item 1, of this report for additional information, including proceeds from issuances of long-term debt, including Ameren Missouri’s April 2022March 2023 issuance of first mortgage bonds, the use of those proceeds, Ameren’s forward equity sale agreements, and the ATM program.
Indebtedness Provisions and Other Covenants
At March 31, 2022,2023, the Ameren Companies were in compliance with the provisions and covenants contained in their credit agreements, indentures, and articles of incorporation, as applicable, and ATXI was in compliance with the provisions and covenants contained in its note purchase agreements. See Note 3 – Short-term Debt and Liquidity under Part I, Item 1, of this report and Note 4 – Short-term Debt and Liquidity and Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of the Form 10-K for a discussion of provisions, applicable cross-default provisions, and covenants contained in our credit agreements, in ATXI’s note purchase agreements, and in certain of the Ameren Companies’ indentures and articles of incorporation.
We consider access to short-term and long-term capital and credit markets to be a significant source of funding for capital requirements not satisfied by cash provided by our operating activities. Inability to raise capital on reasonable terms, particularly during times of uncertainty in the capital and credit markets, could negatively affect our ability to maintain and expand our businesses. After assessing itstheir respective current operating performance, liquidity, and credit ratings (see Credit Ratings below), Ameren, Ameren Missouri, and Ameren Illinois each believes that it will continue to have access to the capital and credit markets on reasonable terms. However, events beyond Ameren’s, Ameren Missouri’s, and Ameren Illinois’ control may create uncertainty in the capital and credit markets or make access to the capital and credit markets uncertain or limited. Such events could increase our cost of capital and adversely affect our ability to access the capital and credit markets.
Dividends
The amount and timing of dividends payable on Ameren’s common stock are within the sole discretion of Ameren’s board of directors. Ameren’s board of directors has not set specific targets or payout parameters when declaring common stock dividends, but it considers various factors, including Ameren’s overall payout ratio, payout ratios of our peers, projected cash flow and potential future cash flow requirements, historical earnings and cash flow, projected earnings, impacts of regulatory orders or legislation, and other key business considerations. Ameren expects its dividend payout ratio to be between 55% and 70% of annual earnings over the next few years.
See Note 4 – Short-term Debt and Liquidity and Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of the Form 10-K for additional discussion of covenants and provisions contained in certain of the Ameren Companies’ financial agreements and articles of incorporation that would restrict the Ameren Companies’ payment of dividends in certain circumstances. At March 31, 2022,2023, none of these
circumstances existed at Ameren, Ameren Missouri, or Ameren Illinois and, as a result, these companies were not restricted from paying dividends.
The following table presents common stock dividends declared and paid by Ameren Corporation to its common shareholders and by Ameren subsidiaries to their parent, Ameren Corporation, for the three months ended March 31, 20222023 and 2021:2022:
| | | Three Months | | Three Months |
| | 2022 | | 2021 | | 2023 | | 2022 |
| Ameren | Ameren | $ | 152 | | | $ | 140 | | Ameren | $ | 165 | | | $ | 152 | |
| | ATXI | ATXI | — | | | 25 | | ATXI | 55 | | | — | |
Credit Ratings
Our credit ratings affect our liquidity, our access to the capital markets and credit markets, our cost of borrowing under our credit facilities and our commercial paper programs, and our collateral posting requirements under commodity contracts.
The following table presents the principal credit ratings by Moody’s and S&P, as applicable, effective on the date of this report:
| | | | | | | | | | | | | | |
| | Moody’s | | S&P |
| Ameren: | | | | |
| Issuer/corporate credit rating | | Baa1 | | BBB+ |
| Senior unsecured debt | | Baa1 | | BBB |
| Commercial paper | | P-2 | | A-2 |
| Ameren Missouri: | | | | |
| Issuer/corporate credit rating | | Baa1 | | BBB+ |
| Secured debt | | A2 | | A |
| Senior unsecured debt | | Baa1 | | Not Rated |
| Commercial paper | | P-2 | | A-2 |
| Ameren Illinois: | | | | |
| Issuer/corporate credit rating | | A3 | | BBB+ |
| Secured debt | | A1 | | A |
| Senior unsecured debt | | A3 | | BBB+ |
| Commercial paper | | P-2 | | A-2 |
| ATXI: | | | | |
| Issuer credit rating | | A2 | | Not Rated |
| Senior unsecured debt | | A2 | | Not Rated |
A credit rating is not a recommendation to buy, sell, or hold securities. It should be evaluated independently of any other rating. Ratings are subject to revision or withdrawal at any time by the rating organization.
Collateral Postings
Any weakening of our credit ratings may reduce access to capital and trigger additional collateral postings and prepayments. Such changes may also increase the cost of borrowing, resulting in an adverse effect on earnings. Cash collateral postings and prepayments made with external parties, including postings related to exchange-traded contracts, were $110 million for Ameren and Ameren Missouri and cash collateral posted by external parties were $35 million, $4 million, and $31 million for Ameren, Ameren Missouri, and Ameren Illinois, respectively,immaterial at March 31, 2022.2023. A sub-investment-grade issuer or senior unsecured debt rating (below “Baa3” from Moody’s or below “BBB-” from S&P) at March 31, 2022,2023, could have resulted in Ameren, Ameren Missouri, or Ameren Illinois being required to post additional collateral or other assurances for certain trade obligations amounting to $98$122 million, $68$59 million, and $30$63 million, respectively.
Changes in commodity prices could trigger additional collateral postings and prepayments. Based on credit ratings at March 31, 2022,2023, if market prices were 15% higher or lower than March 31, 20222023 levels in the next 12 months and 20% higher or lower thereafter through the end of the term of the commodity contracts, then Ameren, Ameren Missouri, and Ameren MissouriIllinois could be required to post an immaterial amount, compared to each company’s liquidity, of collateral or provide other assurances for certain trade obligations.
OUTLOOK
Below are some key trends, events, and uncertainties that may reasonably affect our results of operations, financial condition, or liquidity, as well as our ability to achieve strategic and financial objectives, for 20222023 and beyond. The continued effect of the COVID-19 pandemic on our results of operations, financial position, and liquidity in subsequent periods will depend on its severity and longevity, future
regulatory or legislative actions with respect thereto, and the resulting impact on business, economic, and capital market conditions. Although restrictions on social activities and nonessential businesses implemented in our service territories in 2020 have been relaxed, additional restrictions may be imposed in the future. We continue to monitor the impacts the COVID-19 pandemic is having on our businesses, including but not limited to impacts on our liquidity; demand for residential, commercial, and industrial electric and natural gas services; supply chain operations; the availability of our employees and contractors; counterparty credit; capital construction; infrastructure operations and maintenance; and pension valuations. For additional information regarding recent rate orders, lawsuits, and pending requests filed with state and federal regulatory commissions, including those discussed below, see
Note 2 – Rate and Regulatory Matters under Part I, Item 1, of this report and Note 2 – Rate and Regulatory Matters under Part II, Item 8, of the Form 10-K.
Operations
•We are observing inflationary pressures on the prices of commodities, labor, services, materials, and supplies, as well as increasing interest rates. Ameren Missouri and Ameren Illinois are generally allowed to pass on to customers prudently incurred costs for fuel, purchased power, and natural gas supply. Additionally, for certain non-commodity cost changes, the use of trackers, riders, and formula ratemaking, as applicable, mitigates our exposure. The inflationary pressures and increasing interest rates could impact our ability to control costs and/or make substantial investments in our businesses, including our ability to recover costs and investments, and to earn our allowed ROEs within frameworks established by our regulators, while maintaining rates that are affordable to our customers. In addition, these inflationary pressures and increasing interest rates could adversely affect our customers’ usage of, or payment for, our services. In April 2022, the first three monthsMISO released the results of its 2022 our sales volumes,capacity auction, which have been,projected a capacity shortage in the central region of the MISO footprint, which includes Ameren Missouri’s and continueAmeren Illinois’ service territories. The annual auction resulted in a capacity price increase from $5 per MW-day for June 2021 through May 2022 to $237 per MW-day for June 2022 through May 2023. Ameren Illinois’ purchased power costs increased by nearly $500 million for calendar year 2022, compared to 2021, largely due to higher energy and capacity prices. Higher purchased power costs for calendar year 2023, compared to 2021, are also likely but Ameren Illinois cannot reasonably estimate the amount of the increase as capacity pricing for June 2023 through December 2023 will be affecteddetermined once the results of the 2023 MISO capacity auction are announced in mid-May 2023. Because of the power procurement riders, the difference between actual purchased power costs and costs billed to customers in a given period is deferred as a regulatory asset or liability. These pass-through costs do not affect Ameren Illinois’ net income, as any change in costs are offset by a corresponding change in revenues. Also, largely due to the capacity price set by the COVID-19 pandemic, among other things, were comparableApril 2022 MISO auction, Ameren Missouri’s capacity revenues and purchased power costs increased by approximately $370 million and $360 million, respectively, for the calendar year 2022, compared to 2021. Ameren Missouri sells nearly all of its capacity to the same periodMISO and purchases the capacity it needs to supply its native load sales from the MISO. Higher capacity revenues and purchased power costs for calendar year 2023, compared to 2021, are also likely but Ameren Missouri cannot reasonably estimate the amount of the increases as capacity pricing for June 2023 through December 2023 will be determined once the results of the 2023 MISO capacity auction are announced in 2021, excludingmid-May 2023. Capacity revenues and purchased power costs are a part of the estimated effectsnet energy costs recoverable under the FAC, with 95% of weatherthe variance between net energy costs and customer energy-efficiency programs. While total sales volume levels were also comparable to pre-pandemic levels, there has been a shiftthe amount set in sales volumes by customer class, which began in 2020, with an increase in residential sales, and a decrease in commercial and industrial sales. Because of their regulatory frameworks, Ameren Illinois’ and ATXI’s revenues are largely decoupled from changes in sales volumes.base rates recovered or refunded through the FAC.
•The PISA permits Ameren Missouri to defer and recover 85% of the depreciation expense and earn a return at the applicable WACC onfor investments in certainqualifying property, plant, and equipment placed in service and not included in base rates. Investments not eligible for recovery under the PISA include amounts related to new nuclear and natural gas generating units and service to new customer premises. Additionally, the PISA permits Ameren Missouri to earn a return at the applicable WACC on rate base that incorporates those qualifying investments, as well as changes in total accumulated depreciation excluding retirements and plant-related deferred income taxes since the previous regulatory rate review. The regulatory asset for accumulated PISA deferrals also earns a return at the applicable WACC with all approved PISA deferralsuntil added to rate base prospectivelyprospectively. Ameren Missouri recognizes an offset to interest charges for its cost of debt relating to each return allowed under the PISA, with the difference between the applicable WACC and its cost of debt recognized in revenues when recovery of PISA deferrals is reflected in customer rates. Approved PISA deferrals are recovered over a period of 20 years following a regulatory rate review. Additionally, under the RESRAM, Ameren Missouri is permitted to recover the 15% of depreciation expense not recovered under the PISA, and earn a return at the applicable WACC for investments in renewable generation plant placed in service to comply with Missouri’s renewable energy standard. Accumulated RESRAM deferrals earn carrying costs at short-term interest rates. The PISA and the RESRAM mitigate the effects of regulatory lag between regulatory rate reviews. Those investments not eligible for recovery under the PISA and the remaining 15% of certain property, plant, and equipment placed in service, unless eligible for recovery under the RESRAM, remain subject to regulatory lag. Ameren Missouri defers its cost of debt relating to PISA eligible investments as an offset to interest charges with the difference between the applicable WACC and its cost of debt recognized in revenues when recovery of such deferrals is reflected in customer rates. As a result of the PISA election, additional provisions of the law apply to Ameren Missouri, including limitations on electric customer rate increases. The current rate limitation, which is effective through 2023, is a 2.85% cap on the compound annual growth rate in the average overall customer rate per kilowatthour, based on the electric rates that became effective in April 2017, less half of the annual savings from the TCJA that was passed on to customers as approved in a July 2018 MoPSC order. The rate increase proposed in the April 2023 nonunanimous stipulation and agreement filed in Ameren MissouriMissouri's 2022 electric service regulatory rate review does not expect to exceed thesethis rate increase limitations in 2022. Both the rate increase limitation and the PISA are effective through December 2023, unless Amerenlimitation. Missouri requests and the MoPSC approves an extension through December 2028. In May 2022, Senate Bill 745 passed the Missouri General Assembly and was sent to the governor for approval. If enacted, among other things, the bill would extend thebecame effective on August 28, 2022. The law extended Ameren Missouri’s PISA election through December 2028 and allowallows for an additional five-year extension through December 2033 if requested by Ameren Missouri and approved by the MoPSC. In addition,MoPSC, among other things. The law established a 2.5% annual limit on increases to the electric service revenue requirement used to set customer rate increases resulting fromrates due to the inclusion of incremental PISA deferrals would becomein the revenue requirement. The limitation will be effective beginning in 2024. For informationfor revenue requirements approved by the MoPSC after January 1, 2024, and will be based on the revenue requirement established in the immediately preceding rate increase limitation effective through 2023, see Note 2 – Rate and Regulatory Matters under Part II, Item 8, of the Form 10-K.order.
•In 2018, the MoPSC issued an order approving Ameren Missouri’s MEEIA 2019 plan. The plan includes a portfolio of customer energy-efficiency and demand response programs through December 2023 and low-income customer energy-efficiency programs through December 2024, along with a rider.2023. Ameren Missouri intends to invest approximately $360$350 million over the life of the plan, including $70 million in 2022 and $75 million in 2023. The plan includes the continued use of the MEEIA rider, which allows Ameren Missouri
to collect from, or refund to, customers any difference in actual MEEIA program costs and related lost electric margins and the amounts collected from customers. In addition, the plan includes a performance incentive that provides Ameren Missouri an opportunity to earn additional revenues by achieving certain customer energy-efficiency goals. If the target goals were achieved for 2021 and are achieved for 2022, additional revenues of $24 million would be recognized in 2022, and, if targetspending goals are achieved for 2023, the performance incentive would result in revenues of $12 million in 2023.
•In March 2023, Ameren Missouri filed a proposed customer energy-efficiency plan with the MoPSC under the MEEIA. This filing proposed a three-year plan, which includes a portfolio of customer energy-efficiency programs, along with the continued use of the MEEIA rider discussed above. If the plan is approved, Ameren Missouri intends to invest $122 million annually in the proposed customer energy-efficiency programs from 2024 to 2026. In addition, Ameren Missouri requested performance incentives applicable to each plan year to earn additional revenues by achieving certain customer energy-efficiency and target spending goals. If 100% of $13the goals are achieved, Ameren Missouri would earn additional revenues totaling $55 million would be recognizedover the three-year plan. Ameren Missouri also requested additional performance incentives applicable to each plan year totaling up to $14 million over the three-year plan, if Ameren Missouri exceeds 100% of the goals. The MoPSC is under no deadline to issue an order in 2023.this proceeding.
•In December 2021,August 2022, Ameren Missouri filed a request with the MoPSC issued an order in Ameren Missouri’s 2021seeking approval to increase its annual revenues for electric service regulatory rate review, resulting in anby $316 million. In April 2023, Ameren Missouri, the MoPSC staff, the MoOPC, and certain intervenors filed a nonunanimous stipulation and agreement with the MoPSC to increase of $220 million to Ameren Missouri’s annual revenue requirementrevenues for electric retail service. As a result of this order,service by $140 million. The remaining intervenors did not object to the agreement. A decision by the MoPSC on the nonunanimous stipulation and agreement is expected by June 2023, with new rates expected to take effect on July 1, 2023. Ameren Missouri expects a year-over-year increase to 2022 earnings, compared to 2021, primarily incannot predict whether the third quarter of 2022 due to seasonal electric customer ratesMoPSC will approve the stipulation and higher demand duringagreement, or, if approved, whether any application for rehearing or appeal will be filed, or the summer.outcome if so filed. In addition, if the MoPSC does not approve the stipulation and agreement, Ameren Missouri expects earningscannot predict the level of any electric service rate change the MoPSC may approve, whether the requested regulatory recovery mechanisms will be approved, or whether any rate change that may eventually be approved will be sufficient for Ameren Missouri to increase approximately $23 million inrecover its costs and earn a reasonable return on its investments when the third quarter of 2022, compared to the same period in 2021.rate change goes into effect.
•Ameren Illinois and ATXI use a forward-looking rate calculation with an annual revenue requirement reconciliation for each company’s electric transmission business. Based on expected rate base and the currently allowed 10.52% ROE, which includes a 50 basis point incentive adder for participation in an RTO, the revenue requirements included in 20222023 rates for Ameren Illinois’ and ATXI’s electric transmission businesses are $422$476 million and $195$194 million, respectively. These revenue requirements represent an increase in Ameren Illinois’ revenue requirement of $42$54 million and a decrease in ATXI’s revenue requirementsrequirement of $5$1 million from the revenue requirements reflected in 20212022 rates, primarily due to higher expected rate base at Ameren Illinois and a lower expected rate base at ATXI. These
rates will affect Ameren Illinois’ and ATXI’s cash receipts during 2022,2023, but will not determine their respective electric transmission service operating revenues, which will instead be based on 20222023 actual recoverable costs, rate base, and a return on rate base at the applicable WACC as calculated under the FERC formula ratemaking framework.
•The allowed base ROE for FERC-regulated transmission rates previously charged under the MISO tariff is the subject of an appeal filed with the United States Court of Appeals for the District of Columbia Circuit.pending proceedings. Depending on the outcome of the appeal,proceedings, the transmission rates charged during previous periods and the currently effective rates may be subject to change. Additionally, in March 2019, the FERC issued a Notice of Inquiry regarding its transmission incentives policy.change and refund. In March 2020, the FERC issued a Notice of Proposed Rulemaking on its transmission incentives policy, which addressed many ofincreased the issues in the Notice of Inquiry on transmission incentives. The Notice of Proposed Rulemaking included an increased incentive in the allowed base ROE for participation in an RTO to 100 basis points from the current 50 basis points and revised the parameters for awarding incentives, while limiting the overall incentives to a cap of 250 basis points, among other things. In April 2021, the FERC issued a Supplemental Notice of Proposed Rulemaking, which proposes to modify the Notice of Proposed Rulemaking’s incentive for participation in an RTO by limiting this incentive for utilities that join an RTO to 50 basis points and only allowing them to earn the incentive for three years, among other things. If this proposal is included in a final rule, Ameren Illinois and ATXI would no longer be eligible for the 50 basis point RTO incentive adder, prospectively. The FERC is under no deadline to issue a final rule on this matter. Ameren is unable to predict the ultimate impact of any changes to the FERC’s incentives policy, or any further order on base ROE. A 50 basis point change in the FERC-allowed base ROE would affect Ameren’s and Ameren Illinois’ annual net income by an estimated $12$14 million and $8$10 million, respectively, based on each company’s 20222023 projected rate base.
•Ameren Illinois’ electric distribution service performance-based formula ratemaking framework under the IEIMA allows Ameren Illinois to reconcile electric distribution service rates to its actual revenue requirement on an annual basis to reflect actual recoverable costs incurred and a return at the applicable WACC on year-end rate base.base through 2023. If a given year’s revenue requirement varies from the amount collected from customers, an adjustment is made to electric operating revenues with an offset to a regulatory asset or liability to reflect that year’s actual revenue requirement, independent of actual sales volumes. The regulatory balance is then collected from, or refunded to, customers within two years from the end of the year. Pursuant to an order issued by the ICC inDecember 2022 and March 2021 ICC orders, Ameren Illinois expects to useused the current IEIMA formula framework to establish annual customer rates effective through 2023, and expects to reconcile the related revenue requirement for customer rates established for 2022 and 2023. As such, Ameren Illinois’ 2022 and 2023 revenues wouldwill reflect, each year’s actual recoverable costs, year-end rate base, and a return at the applicable WACC, with the ROE component based on the annual average of the monthly yields of the 30-year United States Treasury bonds plus 580 basis points. For more information on the March 2021 ICC order, see Note 2 – Rate and Regulatory Matters under Part II, Item 8, of the Form 10-K. By law, the decoupling provisions extend beyond the end of existing performance-based formula ratemaking, which ensures that Ameren Illinois’ electric distribution revenues authorized
in a regulatory rate review are not affected by changes in sales volumes. In April 2023, Ameren Illinois filed for a reconciliation adjustment to its 2022 electric distribution service revenue requirement with the ICC, requesting recovery of $127 million. An ICC decision in this proceeding is required by December 2023, and any approved adjustment would be collected from customers in 2024.
•Pursuant to the IETL, which was enacted in September 2021, Ameren Illinois may file an MYRP with the ICC to establish base rates for electric distribution service to be charged to customers for each calendar year of a four-year period. The base rates for a particular calendar year are based on forecasted recoverable costs and an ICC-determined ROE applied to Ameren Illinois’ forecasted average annual rate base using a forecasted capital structure, with a common equity ratio of up to 50% being deemed prudent and reasonable by law and a higher equity ratio requiring specific ICC approval. The ROE determined by the ICC for each calendar year of the four-year period is subject to annual adjustments based on certain performance incentives and penalties. An MYRP would allowallows Ameren Illinois to reconcile electric distribution service rates to its actual revenue requirement on an annual basis, subject to a reconciliation cap and adjustments to the ICC-determined ROE for performance incentives and penalties.ROE. If a given year’s revenue amount collected from customers varies from the approved revenue requirement, an adjustment would be made to electric operating revenues with an offset to a regulatory asset or liability to reflect that year’s actual revenue requirement, independent of actual sales volumes. The regulatory balance would then be collected from, or refunded to, customers within two years from the end of the applicable annual period. Ameren Illinois’ existing riders will remain effective under the January 2023 MYRP discussed below, and will continue to remain effective beyond 2027 whether it elects to file an MYRP or a traditional regulatory rate review. Additionally, electric distribution service revenues would continue to be decoupled from sales volumes under either election. Subject to a constructive outcome regarding the ICC’s determination of performance metrics, Ameren Illinois anticipates filing an MYRP by mid-January 2023, with rates effective beginning in 2024. If Ameren Illinois does not file an MYRP for rates effective beginning in 2024, its next opportunity to file an MYRP would be for rates effective beginning in 2028. For additional information regarding ratemaking under an MYRP, including details of the reconciliation cap, see Note 2 – Rate and Regulatory Matters under Part II, Item 8, of the Form 10-K.
•In 2021,January 2023, Ameren Illinois filed an MYRP with the ICC requesting approval of forecasted revenue requirements for electric distribution service for 2024, 2025, 2026, and 2027 of $1,282 million, $1,373 million, $1,477 million, and $1,556 million, respectively. Pursuant to a provision under the IETL that permits initial rate increases under an MYRP to be phased in, Ameren Illinois’ filing proposes to defer 50% of the requested 2024 rate increase of $171 million as a regulatory asset to be collected from customers in 2026. That regulatory asset would earn a return at the applicable WACC. An ICC decision in this proceeding is required by December 2023, with new rates effective starting in January 2024. Ameren Illinois cannot predict the level of any electric distribution service rate change the ICC may approve, or whether any rate change that may eventually be approved will be sufficient for Ameren Illinois to recover its costs to the extent those costs are subject to and exceed the MYRP reconciliation cap and earn a reasonable return on its investments when the rate change goes into effect.
•In December 2022, the ICC issued an order in Ameren Illinois’ annual update filing that approved a $58$61 million increase in Ameren Illinois’ electric distribution service rates beginning in January 2022.2023. Ameren Illinois’ 20222023 electric distribution service revenues will be based on its 20222023 actual recoverable costs, 20222023 year-end rate base, and a return at the applicable WACC, with the ROE component based on the annual average of the monthly yields of the 30-year United States Treasury bonds plus 580 basis points. As of March 31, 2022,2023, Ameren Illinois expects its 20222023 electric distribution year-end rate base to be $3.9$4.2 billion. The 20222023 revenue requirement reconciliation adjustment will be collected from, or refunded to, customers in 2024.2025. A 50 basis point change in the annual average of the monthly yields of the 30-year United States Treasury bonds would result in an estimated $11$12 million change in Ameren’s and Ameren Illinois’ annual net income, based on Ameren Illinois’ 20222023 projected year-end rate base, including electric energy-efficiency investments. Ameren Illinois’ allowedrecognized ROE for the first three months of 20222023 was based on an estimated annual average of the monthly yields of the 30-year United States Treasury bonds of 2.66%3.81%.
•In April 2022,January 2023, Ameren Illinois filed its annual electric distribution service performance-based formula rate updatea request with the ICC seeking approval to increase its annual revenues for natural gas delivery service by $160 million, which included an estimated $77 million of annual revenues that would otherwise be used for 2023 rates, requesting an increase of $83 million. Anrecovered under the QIP and other riders. A decision by the ICC decision in this proceeding is required by December 2022,late November 2023, with new rates expected to be effective in Januaryearly December 2023. These rates will affect Ameren Illinois' cash receipts during 2023, but will not affect electric distributionIllinois cannot predict the level of any delivery service
revenues, which rate change the ICC may approve, nor whether any rate change that may eventually be approved will be basedsufficient to enable Ameren Illinois to recover its costs and to earn a reasonable return on 2023 actual recoverable costs, 2023 year-endinvestments when the rate base, and a return atchanges go into effect. Without legislative action, the applicable WACC as calculated under the Illinois performance-based formula ratemaking framework.QIP will expire after December 2023.
•Pursuant to Illinois law, Ameren Illinois’ electric energy-efficiency investments are deferred as a regulatory asset and earn a return at the applicable WACC, with the ROE component based on the annual average of the monthly yields of the 30-year United States Treasury bonds plus 580 basis points. The allowed ROE on electric energy-efficiency investments can be increased or decreased by up to 200 basis points, depending on the achievement of annual energy savings goals. While the ICC has approved a plan for Ameren Illinois to invest approximately $100$120 million per year in electric energy-efficiency programs through 2025, the ICC has the ability to reduce the amount of electric energy-efficiency savings goals in future plan program years if there are insufficient cost-effective programs available, which could reduce the investments in electric energy-efficiency programs. The electric energy-efficiency program investments and the return on those investments are collected from customers through a rider and are not recovered through the electric distribution service performance-based formula ratemaking framework. In April 2022, Ameren Illinois filed a revised energy-efficiency plan with the ICC to invest approximately $120 million per year in electric energy-efficiency programs through 2025, which reflects the increased level
•Ameren Missouri's scheduledMissouri’s next refueling and maintenance outage at its Callaway Energy Center began in April 2022. Ameren Missouri expects to incur approximately $50 million in maintenance expenses related tois scheduled for the outage.fall of 2023. During a scheduled refueling, which occurs every 18 months, maintenance expenses are deferred as a regulatory asset and amortized until the completion of the next refueling and maintenance outage. During an outage, depending on the availability of its other generation sources and the market prices for power, Ameren Missouri’s purchased power costs may increase and the amount of excess power available for sale may decrease versus non-outage years. Changes in purchased power costs and excess power available for sale are included in the FAC, which results in limited impacts to earnings. In addition, Ameren Missouri may incur increased non-nuclear energy center maintenance costs in non-outage years. Ameren Missouri’s next refueling and maintenance outage at its Callaway energy center is scheduled for the fall of 2023.
•In December 2021, Ameren Missouri filed a motion with the United States District Court for the Eastern District of Missouri to modify a September 2019 remedy order issued by the district court to allow the retirement of the Rush Island Energy Center in advance of its previously expected useful life in lieu of installing a flue gas desulfurization system. The March 31, 2024 compliance date contained in the district courtcourt’s September 2019 remedy order remains in effect unless extended by the district court. In 2022, in response to an Ameren Missouri request for a final, binding reliability assessment, the MISO designated the Rush Island Energy Center as a system support resource and concluded that certain mitigation measures, including transmission upgrades, should occur before the energy center is retired. The transmission upgrade projects have been approved by the MISO, and design and procurement activities necessary to complete the upgrades are underway. Ameren Missouri expects to complete the upgrades by mid-2025. In 2022, the FERC approved a system support resource agreement, which became effective as of September 1, 2022. The agreement details the manner of continued operation for a system support resource that results in operating during peak demand times and emergencies. The system support resource designation and the related agreement are subject to annual renewal and revision. In September 2022, the Rush Island Energy Center began operating consistent with the system support resource agreement. In addition, in October 2022, the FERC established hearing and settlement procedures in response to an August 2022 request from Ameren Missouri for recovery of non-energy costs under the related MISO tariff. The FERC is under no deadline to issue a ruling revising the remedy order. In January 2022,an order related to this proceeding. Revenues and costs under the MISO completed a preliminary informational assessment regarding potential impacts of the retirement to the regional electric power system, which indicated transmission upgrades and voltage support would be needed in advance of the retirement of the Rush Island Energy Center to address reliability concerns. In February 2022, Ameren Missouri formally notified the MISO of its intent to retire the Rush Island Energy Center and requested the MISO to perform a final reliability assessment, which is expected to be completed in May 2022. The MISO must also separately approve the specific upgrades and transmission support required to address reliability concerns notedtariff are included in the final assessment. Additionally, the MISO will determine whether reliability concerns require the Rush Island Energy Center to be classified as a system support resource, which should continue operating until the completion of to-be-specified transmission upgrades. If the Rush Island Energy Center were identified as a system support resource, an agreement detailing the manner of and time for continued operation would be filed with the FERC for approval.FAC. The district court has the authority to determine the retirement date and operating parameters for the Rush Island Energy Center and is not bound by the MISO determination of the Rush Island Energy Center as a system support resource or the FERC’s approval. The district court is under no deadline to issue a ruling modifying the remedy order. For additional information on the NSR and Clean Air Act litigation, see Note 9 – Commitments and Contingencies under Part I, Item 1, of this report. Ameren Missouri expects to file an update to the 2020 IRP with the MoPSC in June 2022 to reflect the planned acceleration of the retirement of the Rush Island Energy Center from 2039, the retirement year for the facility as reflected in the 2020 IRP. In February 2022, the MoPSC issued an order directing the MoPSC staff to review Ameren Missouri’s planned accelerated retirement of the Rush Island Energy Center, including potential impacts on the reliability and cost of Ameren Missouri’s service to its customers,customers; Ameren Missouri’s plans to mitigate the customer impacts of the accelerated retirement,retirement; and the prudence of Ameren Missouri’s actions and decisions with regard to the Rush Island Energy Center, among other things. In April 2022, the MoPSC staff filed an initial report with the MoPSC in which the staff concluded early retirement of the Rush Island Energy Center may cause reliability concerns. The MoPSC staff is under no deadline to complete this review. As ofSince December 31, 2021, and March 31, 2022, Ameren and Ameren Missouri classified the remaining net book value of the Rush Island Energy Center as plant to be abandoned, net, within “Property, Plant, and Equipment, Net” on Ameren’s and Ameren Missouri’s balance sheets. As part of the assessment of any potential future abandonment loss, consideration will be given to rate and securitization orders issued by the MoPSC to Ameren Missouri and to orders issued to other Missouri utilities with similar facts.
•In January 2022, Ameren Missouri received notice of a proposed determination by the EPA that it has rejected Ameren Missouri’s requests to extend the timeline for operating certain impoundments located at the Sioux and Meramec energy centers. Pursuant to the terms of the proposed determination, compliance with the CCR Rule’s requirements for closure of the impoundments would be required 135 days after the EPA issues a final determination, whichIllinois state law, Ameren Missouri expects to be issued in the spring of 2022. If Ameren Missouri was no longer able to use the surface impoundments at the Sioux or Meramec energy centers, Ameren Missouri would not be able to operate the energy centers unless an alternative for handling the CCR material was available. Ameren Missouri will retire the Meramec Energy Center in 2022, and construction is underway to complete a CCR Rule-compliant impoundment at the Sioux Energy Center to allow for continued operations. Additionally, Ameren Missouri is seeking a reliability determination from the MISO, which, if
granted and accepted by the EPA, would extend the deadline to comply with the requirement to close the surface impoundments and allow the energy centers to operate. Ameren expects the MISO determination to be completed in June 2022. Ameren Missouri does not expect that this matter will have a material adverse effect on its results of operations, financial position, or liquidity.
•The IETL established emission standards that became effective in September 2021. Ameren Missouri'sMissouri’s natural gas-fired energy centers in Illinois are subject to limits on emissions, including CO2 and NOx,NOx, equal to their unit-specific average annual emissions from 2018 through 2020, for any rolling twelve-month period beginning October 1, 2021, through 2029. Further reductions to emissions limits will become effective between 2030 and 2040, whichresulting in the closure of the Venice Energy Center by 2029. The reductions could also limit the operations of Ameren Missouri's fiveMissouri’s other four natural gas-fired energy centers located in the state of Illinois, and will result in thetheir closure of the Venice Energy Center by 2030.2040. These energy centers are utilized to support peak loads. Subject to certain conditions, in the IETL, these energy centers may be allowed to exceed the emissions limits in order to maintain reliability of electric utility service as necessary. Ameren Missouri is reviewing the emission standards and the effect they may have on its generation strategy, including any increases in capital expenditures or operating costs, and changes to the useful life of the Venice Energy Center. Ameren Missouri expects to file an update to the 2020 IRP with the MoPSC in June 2022 to reflect, among other things, the impact of these new emissions standards.
•In April 2022, the MISO released the results of its 2022 capacity auction, which projected a capacity shortage in the central region of the MISO footprint, which includes Ameren Missouri’s and Ameren Illinois’ service territories. The projected shortage resulted in higher capacity prices for June 2022 through May 2023, and the MISO indicated that the shortage may lead to temporary, controlled interruptions of service to maintain system reliability.
•We are observing inflationary pressures on the prices of commodities, labor, services, materials, and supplies. Ameren Missouri and Ameren Illinois are generally allowed to pass on to customers prudently incurred costs for fuel, purchased power, and natural gas supply. Additionally, for certain non-commodity cost changes, the use of trackers, riders, and formula ratemaking, as applicable, mitigates our exposure. The inflationary pressures could impact our ability to control costs and/or make substantial investments in our businesses, including our ability to recover costs and investments, and to earn our allowed ROEs within frameworks established by our regulators, while maintaining rates that are affordable to our customers. Based on estimated power prices and customer demand, the capacity price set by the April 2022 MISO auction, and the amounts of energy and capacity hedged through IPA procurement events, Ameren Illinois estimates an increase to purchased power costs for calendar year 2022, compared to 2021, of approximately $400 million. The actual increase to purchased power costs will vary due to differences between estimated and realized power prices as well as customer demand, which will be affected by changes in customers' elections to use Ameren Illinois or an alternative retail electric supplier for their energy needs. Because of the power procurement riders, the difference between actual purchased power costs and costs billed to customers in a given period is deferred as a regulatory asset or liability. The deferred amount is either billed or refunded to customers in a subsequent period. These pass-through costs do not affect Ameren Illinois' net income, as any change in costs are offset by a corresponding change in revenues.service.
•Ameren Missouri and Ameren Illinois continue to make infrastructure investments and expect to seek increases to electric and natural gas rates to recover the cost of investments and earn an adequate return. Ameren Missouri and Ameren Illinois will also seek new, or to maintain existing, legislative solutions to address regulatory lag and to support investment in their utility infrastructure for the benefit of their customers. Ameren Missouri and Ameren Illinois continue to face cost recovery pressures, including limited economic growth in their service territories, increasing inflation, economic impactshigher cost of the COVID-19 pandemic,debt, customer conservation efforts, the impacts of additional customer energy-efficiency programs, and increased customer use of increasingly cost-effective technological advances,advancements in innovative energy technologies, including private generation and energy storage. However, over the long-term, we expect the decreased demand to be partially offset by increased demand resulting from increased electrification of the economy for efficiencies and as a means to address economy-wide CO2 emission concerns. We expect that increased investments, including expected future investments for environmental compliance, system reliability improvements, and new generation sources, will result in rate base and revenue growth but also higher depreciation and financing costs.
Liquidity and Capital Resources
•While our customers’ payment for our services had previously been adversely affected by the COVID-19 pandemic, payment activity has returned to levels more comparable to pre-pandemic levels. However, our liquidity and our capital expenditure plans could be adversely affected by other impacts resulting from the COVID-19 pandemic, including but not limited to potential impacts on our ability to access the capital markets on reasonable terms when needed and the timing of tax payments and the utilization of tax credits. We expect to make significant capital expenditures to improve our electric and natural gas utility infrastructure, however, disruptionsAmeren Missouri’s preferred resource plan is included in its 2022 Change to the capital markets and the ability of our suppliers and contractors to perform as required under their contracts could impact the execution of our capital investment strategy. For further discussion on the impacts to our ability to access the capital markets, see below.
•In February 2022, Ameren Missouri filed an update to its Smart Energy Plan with the MoPSC, which includes a five-year capital investment overview with a detailed one-year plan for 2022. The plan is designed to upgrade Ameren Missouri’s electric infrastructure
and includes investments that will upgrade the grid and accommodate more renewable energy. Investments under the plan are expected to total approximately $8.4 billion over the five-year period from 2022 through 2026, with expenditures largely recoverable under the PISA and the RESRAM. The planned investments in 2024 through 2026 are based on the assumption that Ameren Missouri requests and receives MoPSC approval of an extension of the PISA from December 2023 to December 2028. For additional information on Senate Bill 745, and its impact on the PISA, see above.
•2020 IRP. In connection with this plan, Ameren Missouri’s 2020 IRP, Ameren established a goal of achievingis targeting net-zero carbon emissions by 2050. Ameren is also targeting2045, as well as a 50% CO2 emission60% reduction by 2030 and an 85% reduction by 2040 from thebased on 2005 level. levels.
Ameren’s CO2 emission reduction targets encompassgoals include both direct emissions from operations (scope 1), as well as electricity usage at Ameren Missouri’sbuildings (scope 2), including other greenhouse gas emissions of methane, nitrous oxide, and Ameren Illinois’ operations, with nearly allsulfur hexafluoride. Achieving these goals will be dependent on a variety of those emitted by Ameren Missouri’s generation fleet. In 2021, the MoPSC issued an order affirming the plan’s compliance with Missouri law.factors, including cost-effective advancements in innovative clean energy technologies and constructive federal and state energy and economic policies. The plan targets cleaner and more diverse sources of energy generation, including solar, wind, hydro, and nuclear power, and supports increased investment in new energy technologies. It also includes expanding renewable sources by adding 3,100 MWs of renewable generation by the end of 2030 and a total of 5,400 MWs of renewable generation by 2040. These amounts include 700 MWs related2022 Change to the High Prairie Renewable and Atchison Renewable energy centers, which support Ameren Missouri’s compliance with2020 IRP includes, among other things, the state of Missouri’s requirement of achieving 15% of native load sales from renewable energy sources that began in 2021. The plan also includes accelerating the retirement dates of the Sioux and Rush Island coal-fired energy centers to 2028 and 2039, respectively, following:
•the continued implementation of customer energy-efficiency programs,programs;
•expanding renewable sources by adding 2,800 MWs of renewable generation by 2030, 400 MWs of battery storage by 2035, and a total of 4,700 MWs of renewable generation and 800 MWs of battery storage by 2040. These amounts include the solar generation projects discussed below;
•adding 1,200 MWs of natural gas-fired combined cycle generation by 2031, with plans to switch to hydrogen fuel and/or blend hydrogen fuel with natural gas and install carbon capture technology if these technologies become commercially available at a reasonable cost;
•adding 1,200 MWs of additional clean dispatchable generation by 2043;
•the expectation that Ameren Missouri will seek and receive NRC approval for an extension of the operating license for the Callaway Energy Center beyond its current 2044 expiration date. Additionally,date;
•extending the plan includes retirement date of the coal-fired Sioux Energy Center from 2028 to 2030 to ensure reliability during the transition to clean energy generation, which is subject to the approval of a change in the asset’s depreciable life by the MoPSC in Ameren Missouri’s 2022 electric service regulatory rate review;
•accelerating the retirement date of the Rush Island coal-fired energy center to 2025;
•retiring the Meramec andcoal-fired energy center at the end of its useful life in 2022, which was completed in December 2022;
•retiring the generating units at the Labadie coal-fired energy centerscenter at the end of their useful lives (by 2022(two generating units by 2036 and 2042, respectively). the other two by 2042);
•accelerating the retirement date of the Venice natural gas-fired energy center to 2029; and
•retiring Ameren Missouri’s other natural gas-fired energy centers in Illinois by 2040.
Ameren Missouri’s plan could be affected by, among other factors: Ameren Missouri’s ability to obtain certificates of convenience and necessityCCNs from the MoPSC, and any other required approvals for the addition of renewable resources or natural gas-fired combined cycle generation, retirement of energy centers, and new or continued customer energy-efficiency programs; the ability to enter into build-transfer agreements for renewable or natural gas-fired combined cycle generation and acquire or construct that generation at a reasonable cost; the ability of suppliers, contractors, and developers to meet contractual commitments and timely complete projects, which is dependent upon the availability of necessary labor, materials, and equipment, including those that are affected by the disruptions in the global supply chain caused by the COVID-19 pandemic, geopolitical conflict, or government actions, among other things; changes in the scope and timing of projects; the availability ofability to qualify for, and use or transfer, federal production andor investment tax credits related to renewable energy and Ameren Missouri’s ability to use such credits; the cost of wind, solar, and other renewable generation and battery storage technologies; the cost of natural gas or hydrogen CT technologies; the ability to maintain system reliability during and after the transition to clean energy generation; changes in environmental regulations, including those related to carbonCO2 and other greenhouse gas emissions; energy prices and demand; and Ameren Missouri’s ability to obtain necessary rights-of-way, easements, and transmission interconnection agreements at an acceptable cost and in a timely fashion. In December 2021,fashion, the MoPSC issuedinability to earn an order in Ameren Missouri’s 2021 electric service regulatory rate review, which, among other things, approved a change in the depreciable lives of the Sioux and Rush Island energy centers’ assets consistent with Ameren Missouri’s 2020 IRP. Due to the NSR and Clean Air Act Litigation discussed in Note 9 – Commitments and Contingencies under Part I, Item 1, of this report, Ameren Missouri plans to retire the Rush Island Energy Center prior to the 2039 date discussed above. Ameren Missouri expects to file an update to the 2020 IRP with the MoPSC in June 2022 to reflect an accelerated retirement date for the Rush Island Energy Centeradequate return on invested capital; and the impact of new emission standards pursuantability to the IETL, as discussed in Note 9 – Commitments and Contingencies, among other things.raise capital on reasonable terms. The next integrated resource plan is expected to be filed in September 2023.
•Missouri law allows Missouri electric utility companies to petition the MoPSC for a financing order to authorize the issuance of securitized utility tariff bonds to finance the cost of retiring electric generation facilities before the end of their useful lives, including the repayment of existing debt.lives. In connection with the planned accelerated retirement of the Rush Island Energy Center due to the NSR and Clean Air Act Litigation discussed above, Ameren Missouri expects to seek approval from the MoPSC to finance the costs associated with the retirement, including the remaining unrecovered net plant balance associated with the facility, through the issuance of securitized utility tariff bonds.
•In FebruaryDuring 2022 and 2023, Ameren Missouri through a subsidiary, entered into a build-transfer agreementagreements to acquire a 150-MWand/or construct various solar generation facility after construction.facilities. The facilityfollowing table provides information with respect to each solar generation facility:
| | | | | | | | | | | | | | | | | |
| | Boomtown Solar Project(a) | Huck Finn Solar Project(b) | Vandalia Solar Project(c) | | | |
| Agreement date | | February 2022 | June 2022 | September 2022 | | | |
| Agreement type | | Build-transfer | Build-transfer | Self-build(d) | | | |
| Developer | | Invenergy Renewables, LLC | EDF Renewables, Inc. | Ameren Missouri(d) | | | |
| Facility size | | 150-MW | 200-MW | 50-MW | | | |
| Location | | Southeastern Illinois | Central Missouri | Central Missouri | | | |
| Status of MoPSC CCN | | Approved April 2023 | Approved February 2023 | Expect to file by mid-2023 | | | |
| Status of FERC approval of acquisition | | Expect to request by mid-2023 | Received March 2023 | (e) | | | |
| Expected completion date | | As early as fourth quarter 2024(f)(g) | As early as fourth quarter 2024(g) | As early as mid-2025(f) | | | |
(a)The Boomtown Solar Project is expected to support Ameren Missouri’s transition to renewable energy generation and serve customers under the Renewable Solutions Program.
(b)The Huck Finn Solar project is expected to support Ameren Missouri’s compliance with the state of Missouri’s requirement of achieving 15% of retail sales from renewable energy sources, of which 2% must be located in southeastern Illinois. derived from solar energy sources.
(c)The acquisitionVandalia Solar Project is subjectexpected to certain conditions, including the issuance of a certificate of convenience and necessity by the MoPSC, obtaining a MISO transmission interconnection agreement, and approval by the FERC. support Ameren Missouri’s transition to renewable energy generation.
(d)Ameren Missouri expectsentered into an engineering, supply, and construction agreement to file for a certificate of convenienceconstruct the Vandalia Solar Project.
(e)Because Ameren Missouri will develop and necessity withconstruct the MoPSC by mid-2022. DependingVandalia Solar Project, there is no acquisition requiring FERC approval.
(f)Expected completion dates are dependent on the timing of regulatory approvals andapprovals.
(g)Expected completion dates are dependent on the impact of potential sourcing issues discussed below,below.
All of the project could be completed as early as 2024.solar projects above are aligned with the 2022 Change to the 2020 IRP discussed above, and are subject to certain conditions, including approval by the FERC for the Boomtown Solar Project and the issuance of a CCN by the MoPSC for the Vandalia Solar Project. Capital expenditures related to this facilitythese facilities are not included in Ameren’s and Ameren Missouri’s expected capital investments discussed below.
•Ameren Missouri's 2022 Change to the 2020 IRP targets cleaner and more diverse sources of energy generation, including solar generation. While rights to acquire and/or construct the 150-MW solar facilityfacilities discussed above were secured through a build-transfer agreement,agreements, supply chain disruptions, including solar panel shortages and increasing material costs as a result of government tariffs and other factors, could affect the costs, as well as the timing, of this projectthese projects and other solar generation projects. The supply of solar panelspanel components to the United States has beenwas significantly disrupted as a result of an investigation initiated by the United States Department of Commerce in late March 2022, which could result in punitivesignificant tariffs on solar panelspanel components imported from four Southeast Asian countries. The investigation is in response to complaints ofa petition, which alleged that Chinese solar manufacturers shiftingshifted solar cellspanel component manufacturing to these countries to avoid tariffs requiredimposed on imports from China. TheIn December 2022, the United States Department of Commerce is
requiredsolar panel components from the four Southeast Asian countries, with a few exceptions, have been circumventing tariffs imposed on imports from China. As a result of the preliminary determination, importers and exporters may avoid the imposition of increased tariffs by certifying to the United States Department of Commerce that the entry of solar panel components into the United States are not subject to the investigation or that they fall within the scope of the 24-month waiver of tariffs discussed below. Failure to submit the applicable certifications, or denial of the submitted certifications by the United States Department of Commerce, could result in increased tariffs on solar panel components that are subject to the investigation and entered the United States on or after April 1, 2022. The United States Department of Commerce is expected to issue a preliminary determination within 150 days of its initiation of an investigation, with final determination taking 300 days or more.by mid-August 2023. Additionally, certain solar panelspanel components from China have been subject to detention by the United States Customs and Border Protection Agency as a result of the Uyghur Forced Labor Prevention Act that was passedbecame effective in December 2021.June 2022. Also, in June 2022, President Biden authorized the United States Department of Energy to use the Defense Production Act to rapidly expand American manufacturing of five critical clean energy technologies, including solar panel components. President Biden also took executive action to temporarily lift certain tariffs on solar panel components imported from the four Southeast Asian countries under investigation by the United States Department of Commerce for 24 months in order to allow the United States access to a sufficient supply of solar panel components to meet electricity generation needs while domestic manufacturing scales up. Any future tariffs or other outcomes resulting from the investigation by the United States Department of Commerce or actions by the United States Customs and Border Protection Agency could affect the cost and the availability of solar panelspanel components and the timing and amount of Ameren Missouri's estimated capital expenditures associated with solar generation investments.
•Through 2026,2027, we expect to make significant capital expenditures to improve our electric and natural gas utility infrastructure, with a major portion directed to our transmission and distribution systems. We estimate that we will invest up to $18.0$20.5 billion (Ameren Missouri – up to $9.2$10.8 billion; Ameren Illinois – up to $8.6$9.5 billion; ATXI – up to $0.2 billion) of capital expenditures during the period from 20222023 through 2026.2027. These planned investments are based on the assumption of continued constructive regulatory frameworks, including an assumption that Ameren Missouri requests and receives MoPSC approval of an extension of the PISA from December 2023 to December 2028.frameworks. Ameren’s and Ameren Missouri’s estimates excludeinclude $2.5 billion of renewable generation investment opportunities of 1,200 MWs by 2026, which are includedinvestments through 2027 consistent with investments outlined in Ameren Missouri’s 2022 Change to the 2020 IRP, and additional investment opportunities that may be approved byIRP. Ameren’s estimate also includes $0.8 billion of capital expenditures through 2027 related to projects assigned to Ameren pursuant to the MISO to address reliability concerns in connection withfirst tranche of projects under the planned accelerated retirement of the Rush Island Energy Center.MISO’s long-range transmission planning roadmap discussed below.
•In 2021, the MISO issued a report outlining a preliminary long-range transmission planning roadmap of projects through 2039, which considers the rapidly changing generation mix within MISO resulting from significant additions of renewable generation, actual and expected generation plant closures, and state mandates or goals for clean energy or carbon emissions reductions. In FebruaryJuly 2022, the MISO updated a listapproved the first tranche of projects under consideration for the first phase of the roadmap,roadmap. A portion of these projects were assigned to various utilities, of which Ameren was awarded projects that are estimated to cost approximately $1.8 billion, based on the MISO’s cost estimate. Construction on the Ameren projects is expected to begin in 2025, with completion dates expected near the end of this decade. The MISO initiated requests for proposals for additional first tranche competitive bid projects in December 2022, with proposals due in May 2023, and is expected to approve certaininitiate additional requests for proposals in June and July 2023, with proposals due in November and October 2023, respectively. These competitive-bid projects are estimated by the MISO to cost approximately $0.7 billion and are expected to be awarded between late-2023 and mid-2024. In November 2022, the MISO released plans for a second tranche of projects and began the process of identifying a list of projects for consideration under this tranche. Ameren expects the second tranche of
projects to be approved in the first phase in latehalf of 2024. In July 2022. Expenditures2022, a group of industrial customers filed a complaint with the FERC, challenging provisions of a MISO tariff that resultexclude regional transmission projects from the MISO’s competitive bid process based on state laws related to the right of first refusal, which provide an incumbent utility the right to build, maintain, and own transmission lines located within its service territory. The complaint seeks to require MISO to revise its tariff to prohibit the application of state laws related to the right of first refusal in the MISO’s long-range transmission planning roadmap may cause adjustmentsand require projects to our estimatedbe bid on a competitive basis, to the maximum extent possible. It also is asking for refunds related to any costs under the tariff that would not comply with the sought-after revisions. The FERC is under no deadline to issue an order in this proceeding.
•In July 2022, through 2026 capital expenditures.an Illinois law prohibiting the state’s oversight of certain electric utilities’ choice of RTO membership ceased to be effective. Given the change in law and the high prices resulting from MISO’s April 2022 capacity auction, the ICC issued an order requiring Ameren Illinois to perform a cost-benefit study of continued participation in the MISO compared to participation in PJM Interconnection LLC, another RTO. The cost-benefit study will examine the impacts of participation in each RTO, including reliability, resiliency, affordability, and environmental impacts, among other things, for a period of five to 10 years beginning June 2024. The ICC order requires Ameren Illinois to file the study by July 2023. A 30-day comment period will follow. The ICC is under no obligation to issue an order related to the cost-benefit study.
•Environmental regulations, including those related to CO2emissions, or other actions taken by the EPA or state regulators, or requirements that may result from the NSR and Clean Air Act Litigation discussed in Note 9 – Commitments and Contingencies under Part I, Item 1, of this report, could result in significant increases in capital expenditures and operating costs. Regulations enacted by a prior federal administration can be reviewed and repealed, and replacement or alternative regulations can be proposed or adopted by the current federal administration, including the EPA. The ultimate implementation of any of these new regulations, as well as the timing of any such implementation, is uncertain. However, the individual or combined effects of existing and new environmental regulations could result in significant capital expenditures, increased operating costs, or the closure or alteration of some of Ameren Missouri’s coal and natural gas-fired energy centers. Ameren Missouri’s capital expenditures are subject to MoPSC prudence reviews, which could result in cost disallowances as well as regulatory lag. The cost of Ameren Illinois’ purchased power and natural gas purchased for resale could increase. However, Ameren Illinois expects that these costs would be recovered from customers with no material adverse effect on its results of operations, financial position, or liquidity. Ameren’s and Ameren Missouri’s earnings could benefit from increased investment to comply with environmental regulations if those investments are reflected and recovered on a timely basis in customer rates.
•The Ameren Companies have multiyear credit agreements that cumulatively provide $2.3$2.6 billion of credit through December 2025,2027, subject to a 364-day repayment term for Ameren Missouri and Ameren Illinois, with the option to seek incremental commitments to increase the cumulative credit provided to $2.7$3.2 billion. See Note 3 – Short-term Debt and Liquidity under Part I, Item 1, of this report and Note 4 – Short-term Debt and Liquidity under Part II, Item 8, in the Form 10-K for additional information regarding the Credit Agreements. BySee Note 5 – Long-Term Debt and Equity Financings under Part II, Item 8, in the end of 2022, $55 million, $400 million, and $50 million ofForm 10-K for long-term debt obligations are duematurities from 2023 to mature2027 and beyond at Ameren (parent), Ameren Missouri, Ameren Illinois, and ATXI, respectively.ATXI. Ameren, Ameren Missouri, and Ameren Illinois each believe that their liquidity is adequate given their respective expected operating cash flows, capital expenditures, and financing plans. To date,plans, and expect to continue to have access to the Ameren Companies have been able to access the capital and credit markets on reasonable terms when needed. However, there can be no assurance that significant changes in economic conditions, disruptions in the capital and credit markets, or other unforeseen events will not materially affect their ability to execute their expected operating, capital, or financing plans.
•Ameren expects its cash used for currently planned capital expenditures and dividends to exceed cash provided by operating activities over the next several years. As part of its funding plan for capital expenditures, Ameren is using newly issued shares of common stock, rather than market-purchased shares, to satisfy requirements under the DRPlus and employee benefit plans and expects to continue to do so through at least 2026.2027. Ameren expects these equity issuances to provide equity oftotal about $100 million annually. In addition, in 2021, Ameren establishedhas an ATM program under which Ameren may offer and sell from time to time up to $750 million of its common stock, which includes the ability to enter into forward sales agreements, subject to market conditions and other factors. For additional information regarding outstandingAs of April 30, 2023, Ameren has multiple forward sale agreements including settlement dates, see Note 4 – Long-Term Debt and Liquidityoutstanding under Part I, Item 1,the ATM program with various counterparties relating to 3.8 million shares of this report.common stock. Ameren expects to settle approximately $300 million of the forward sale agreements with physical delivery of 3.2 million shares of common stock by December 31, 2022.2023. Also, Ameren plans to issue approximately $300$500 million of equity each year from 20222024 to 20262027, in addition to issuances under the DRPlus and employee benefit plans. As of March 31, 2023, Ameren had approximately $980 million of common stock available for sale under the ATM program, which takes into account the forward sale agreements in effect as of March 31, 2023. Ameren expects its equity to total capitalization ratio to be approximatelyabout 45% through December 31, 2026,2027, with the long-term intent to support solid investment-grade credit ratings. Ameren Missouri and Ameren Illinois expect to fund cash flow needs through debt issuances, adjustments of dividends to Ameren (parent), and/or capital contributions from Ameren (parent).
•The IRA was enacted in August 2022, and includes various income tax provisions, among other things. The law extends federal production and investment tax credits for projects beginning construction through 2024 and allows for a 10% adder to the production and investment tax credits for siting projects at existing energy communities as defined in the law, which includes sites previously used for coal-fired generation. The law also creates clean energy tax credits for projects placed in service after 2024. The clean energy tax
credits will apply to renewable energy production and investments, along with certain nuclear energy production, and will be phased out beginning in 2033, at the earliest. The phase-out is triggered when greenhouse gas emissions from the electric generation industry are reduced by at least 75% from the annual 2022 emission rate or at the beginning of 2033, whichever is later. The law allows for transferability to an unrelated party for cash of up to 100% of certain tax credits generated after 2022. In addition, the new law imposes a 15% minimum tax on adjusted financial statement income, as defined in the law, for corporations whose average annual adjusted financial statement income exceeds $1 billion for three consecutive preceding tax years effective for tax years beginning after December 31, 2022. Once a corporation exceeds this three-year average annual adjusted financial statement income threshold, it will be subject to the minimum tax for all future tax years. Additional regulations, interpretations, amendments, or technical corrections to or in connection with the IRA are expected to be issued by the IRS or United States Department of Treasury, which may impact the timing of when the 15% minimum tax becomes applicable for Ameren as discussed below.
•As of March 31, 2022,2023, Ameren had $136$184 million in tax benefits from federal and state income tax credit carryforwards and $35$48 million in tax benefits from federal and state net operating loss carryforwards, which will be utilized in future periods. Future expected income tax payments are based on expected taxable income, available income tax credit and net operating loss carryforwards, and current tax law. Expected taxable income is affected by expected capital expenditures, when property, plant, and equipment is placed in-service or retired, and the timing of regulatory reviews, among other things. Ameren expects federal income tax payments at the required minimum levels from 20222023 to 20262027 resulting from the anticipated use of existing production tax credits generated by Ameren Missouri’s High Prairie Renewable and Atchison Renewable energy centers, existing income tax credit and net operating losses, tax creditloss carryforwards, tax overpayments, and outstanding refunds.
•As a result of the significant increase in customer demand and prices for natural gas and electricity experienced in mid-February 2021 due to extremely cold weather, for the month of February 2021, Based on its preliminary calculations, Ameren Missouri and Ameren Illinois had under-recovered costs under their PGA clauses and, for Ameren Missouri, under the FAC (Ameren Missouri - PGA $53 million, FAC $50 million; Ameren Illinois - PGA $221 million). Ameren Missouri’s PGA and FAC under-recoveries are designeddoes not expect to be collected from customers over 12 months beginning November 2021subject to the 15% minimum tax on adjusted financial statement income imposed by the IRA in 2023 and eight months beginning October 2021, respectively. In October 2021,2024. Ameren expects annual federal income tax payments, including payments related to the MoPSC issued an order allowing Ameren Missouri15% minimum tax pursuant to extend the collection period for the cumulative PGA under-recovery as of August 2021, which includes the February 2021 under-recovery, from 12 monthsIRA, to 36 months beginning November 2021, to lessen the impact on customer rates. Ameren Illinois is collecting the PGA under-recovery over 18 months beginning April 2021.be immaterial through 2027.
The above items could have a material impact on our results of operations, financial position, and liquidity. Additionally, in the ordinary course of business, we evaluate strategies to enhance our results of operations, financial position, and liquidity. These strategies may include acquisitions, divestitures, opportunities to reduce costs or increase revenues, and other strategic initiatives to increase Ameren’s shareholder value. We are unable to predict which, if any, of these initiatives will be executed. The execution of these initiatives may have a material impact on our future results of operations, financial position, or liquidity.
REGULATORY MATTERS
See Note 2 – Rate and Regulatory Matters under Part I, Item 1, of this report.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
There have been no material changes to the quantitative and qualitative disclosures about interest rate risk, credit risk, commodity price risk, investment price risk, and commodity supplier risk included in the Form 10-K, except for as discussed below. See Item 7A under Part II of the Form 10-K for a more detailed discussion of our market risk.
Ameren Missouri has an immaterial amountreceived planned deliveries of enriched uranium that will be utilized later this decade sourced from a Russian supplier that could become subject to future sanctions.in the spring of 2023. The agreement with this Russian supplier has been fulfilled in its entirety, and Ameren Missouri is reviewing options to reduce its exposure fromdoes not have any outstanding supply contracts with Russian uranium suppliers. Ameren Missouri has inventories and supply contracts fromwith non-Russian suppliers sufficient tothat adequately meet all of its uranium (concentrate and hexafluoride), conversion, and enrichment requirements at leastthe nuclear fuel needs of the Callaway Energy Center through the 2026 refueling of the Callaway Energy Center.reload.
ITEM 4. CONTROLS AND PROCEDURES.
(a)Evaluation of Disclosure Controls and Procedures
As of March 31, 2022,2023, evaluations were performed under the supervision and with the participation of management, including the principal executive officer and the principal financial officer of each of the Ameren Companies, of the effectiveness of the design and operation of such registrant’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act). Based on those evaluations, as of March 31, 2022,2023, the principal executive officer and the principal financial officer of each of the Ameren Companies concluded that such disclosure controls and procedures are effective to provide assurance that information required to be disclosed in such registrant’s reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms and such information is accumulated and communicated to its management, including its principal executive officer and its principal financial officer, to allow timely decisions regarding required disclosure.
(b)Changes in Internal Controls over Financial Reporting
There has been no change in any of the Ameren Companies’ internal control over financial reporting during their most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, each of their internal control over financial reporting.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
We are involved in legal and administrative proceedings before various courts and agencies with respect to matters that arise in the ordinary course of business, some of which involve substantial amounts of money. We believe that the final disposition of these proceedings, except as otherwise disclosed in this report, will not have a material adverse effect on our results of operations, financial position, or liquidity.
Risk of loss is mitigated, in some cases, by insurance or contractual or statutory indemnification. We believe that we have established appropriate reserves for potential losses. For additional information on material legal and administrative proceedings, see Note 2 – Rate and Regulatory Matters, Note 9 – Commitments and Contingencies, and Note 10 – Callaway Energy Center, under Part I, Item 1, of this report. Pursuant to Item 103(c)(3)(iii) of Regulation S-K, our policy is to disclose environmental proceedings to which a governmental entity is a party if we reasonably believe such proceedings will result in monetary sanctions of $1 million or more. ITEM 1A. RISK FACTORS.
There have been no material changes to the risk factors disclosed in Part I, Item 1A, Risk Factors in the Form 10-K.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
Ameren Corporation, Ameren Missouri, and Ameren Illinois did not purchase equity securities reportable under Item 703 of Regulation S-K during the period from January 1, 2022,2023, to March 31, 2022.2023.
ITEM 6. EXHIBITS.
The documents listed below are being filed or have previously been filed on behalf of the Ameren Companies and are incorporated herein by reference from the documents indicated and made a part hereof. Exhibits not identified as previously filed are filed herewith.
| | | | | | | | | | | | | | | | | | | | |
Exhibit
Designation | | Registrant(s) | | Nature of Exhibit | | Previously Filed as Exhibit to: |
|
| | | | | | |
| Instruments Defining Rights of Security Holders, Including Indentures |
| 4.1 | | Ameren
Ameren Missouri | | | | April 1, 2022March 13, 2023 Form 8-K, Exhibit 4.2,
1-29671-14756 |
| Rule 13a-14(a) / 15d-14(a) Certifications |
| 31.1 | | Ameren | | | | |
| 31.2 | | Ameren | | | | |
| 31.3 | | Ameren Missouri | | | | |
| 31.4 | | Ameren Missouri | | | | |
| 31.5 | | Ameren Illinois | | | | |
| 31.6 | | Ameren Illinois | | | | |
| Section 1350 Certifications |
| 32.1 | | Ameren | | | | |
| 32.2 | | Ameren Missouri | | | | |
| 32.3 | | Ameren Illinois | | | | |
| Interactive Data Files |
| 101.INS | | Ameren Companies | | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | | |
| 101.SCH | | Ameren Companies | | Inline XBRL Taxonomy Extension Schema Document | | |
| 101.CAL | | Ameren Companies | | Inline XBRL Taxonomy Extension Calculation Linkbase Document | | |
| 101.LAB | | Ameren Companies | | Inline XBRL Taxonomy Extension Label Linkbase Document | | |
| 101.PRE | | Ameren Companies | | Inline XBRL Taxonomy Extension Presentation Linkbase Document | | |
| 101.DEF | | Ameren Companies | | Inline XBRL Taxonomy Extension Definition Document | | |
| 104 | | Ameren Companies | | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | | |
The file number references for the Ameren Companies’ filings with the SEC are: Ameren, 1-14756; Ameren Missouri, 1-2967; and Ameren Illinois, 1-3672.
Each registrant hereby undertakes to furnish to the SEC upon request a copy of any long-term debt instrument not listed above that such registrant has not filed as an exhibit pursuant to the exemption provided by Item 601(b)(4)(iii)(A) of Regulation S-K.
SIGNATURES
Pursuant to the requirements of the Exchange Act, each registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature for each undersigned company shall be deemed to relate only to matters having reference to such company or its subsidiaries.
| | |
|
AMEREN CORPORATION
(Registrant) |
|
| /s/ Michael L. Moehn |
Michael L. Moehn
Senior Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
|
|
UNION ELECTRIC COMPANY
(Registrant) |
|
| /s/ Michael L. Moehn |
Michael L. Moehn
Senior Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
|
|
AMEREN ILLINOIS COMPANY
(Registrant) |
|
| /s/ Michael L. Moehn |
Michael L. Moehn
Senior Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
Date: May 6, 20225, 2023
