AEE - Earnings call transcript Q4 2017

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Operator

Greetings, and welcome to the Ameren Corporation’s Fourth Quarter 2017 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Doug Fischer, Senior Director of Investor Relations for Ameren Corporation. Thank you, Mr. Fischer.

begin. may You

Doug Fischer

good and Thank morning. you,

Chief questions. On the discuss provide the the our for our Ameren Then are well our and Baxter, update. management as team. Marty results me President with Executive other and will call of President Lyons, earnings today well Chairman, Marty Chief Warner and and a open as as and call business Executive members Officer; will Financial Warner we Vice as Officer; guidance

Before me data details. is broadcast, referenced website amereninvestors.com the a let our this we call accurate This will this by that with today’s our homepage speakers. assist of of call of posted administrative presentation begin, broadcast morning, few on a cover To have be is as contains the live that time-sensitive redistribution date prohibited. and only we

presentation, statements Page call statements. referred caution on Such of performance. may X objectives, anticipated. results plans, We about factors cause to those events, conditions statements you strategies, actual noted to that contain materially conference and differ could As made commonly financial include expectations, future are from the various during beliefs, that this forward-looking those as comments

the information Forward-looking issued Forward-looking For please with release SEC. Factors filings the and section factors, concerning sections news additional Risk today in the these Statements Statements the read we and in our

diluted otherwise earnings during unless presentation, are today’s a share on including discussed per amounts guidance, all basis, Lastly, presented noted. earnings

the Now, here’s start Warner, X will Page presentation. who on of

Warner Baxter

joining morning, Good us. you everyone, Doug. and for Thanks, thank

those been group who historic offer to our year coworkers restoration their to begin as in my to It’s a to heading the as displayed and of extra update, for important well teamwork our appreciation Before Florida which so they work. to families this life. well to handled support as of efforts to stayed impacted efforts Puerto express this who Rico leave wishes best of my hurricane this and first to want and These all volunteered mission to proud Texas, so were Puerto coworkers continue efforts quality commitment of island business I many who power work restoration restoration and incredible in Harvey, Maria, a Irma coworkers behind support the weeks I our important Rico. while who deep efforts following duties Hurricanes I’m are as second to volunteered gone.

moving strong marks to execution share to XXXX Now share businesses. growth financial of of strategy compared core per our $X.XX across another by announced $X.XX year driven the we This our XXXX. in Earlier per results. our successful today, earnings earned of

cost a allocated While discipline, by drivers constructive of regulatory minutes, and discuss exercise in results year, areas to the team’s we businesses our were Last capital continue Marty frameworks. highlight few to strong to our performance like these some XXXX. in will I’d strategically that of management supported

also noted We across all projects page. our well, on transmission projects customers. value three this delivered very proceeded major ultimately our of to businesses, which effectively as ATXI’s managed capital

and natural electric distribution continued meters to electric of two-thirds modernization gas deployment now Illinois which are modules, smart investments complete. make gas in including good We businesses, continue combined, our about significant the and

major concluded refueling maintenance In December. outage and its safely in addition, Callaway

outcome Another Missouri achieved electric was review. XXXX rate its accomplishment constructive key the by Ameren in

the Commission, our Ameren for more power shareholders. customers last infrastructure benefits filed will Public our our the advocated federal important of to with utility electric rates fall, provisions key return on earn As results Missouri customers. in efforts Missouri’s And nation’s fair supporting investor-owned to Plan made electric we income for a advances both change need impacting new many new result, a generation the that reform Integrated Resource would diverse in tax to Missouri and portfolio. cleaner, effect utilities, a law Further, meaningfully of Ameren together the successfully with and tax enacted April, investments a energy heavily finally, for recently Service income benefit which of tax transition working the

can in XXXX, customers for successfully strategy which you our executed we delivered see, our value As shareholders. significant and

to now in guidance. earnings Turning X, Page

will First, earnings in be our growth share. XXXX expect to within a per range this again $X.XX per Earnings to XXXX. we share of in $X.XX strong range deliver

will I As X% moment, rolled provide per this compound reflect using on continued over the in core would infrastructure XXXX to growth X% XXXX we opportunities through expect in also strategy, And, guidance bit earnings I long-term outlook forward this base. pleased earnings Building announce by customers. years, long-term share our later. more to details past as XXXX including XXXX core results. a the a as earnings represents nearly annual further growth for benefit the X% driven investment our the that execution for guidance incremental you of our earnings investing a does discuss guidance several growth midpoint, a compared Missouri. XXXX am guidance, strong to in growth significant with This on earnings period, have robust Marty not we of infrastructure is and

Page Turning to X.

compound annual We period. XXXX over XXXX in to our approximately grow rate rate expect an base through X%

that deferred reform of the would also lowered our base is in page. capital expected graph strategically in as driving businesses This Our those the with reflected plan tax federal the each each for jurisdictions. to regulatory is faster side allocating right rate again frameworks. businesses jurisdictions to base of growth balances operate I this rate growth noted in that these in related constructive tax of on note includes

the discuss later rate in on in the reform for in X.X%, impacts growth federal would’ve of will greater call. impacts For tax of not been positive example, detail the base. range reform X% rate Marty Missouri’s base to tax

in that earlier. by Missouri’s year earnings growth incremental discussed wind rate proposed Ameren approximately five Resource do of projections include XXXX, the Plan of investment our base billion not Importantly, and opportunity Integrated $X generation I

I base few these negotiations add pending in rate Missouri, process will cover investments further multiyear outlook We moments. into our approval finalize we regulatory wind as a expect which the with and move developers in to to

addition, a rate incremental for to is and expenditures not plan legislation that to approximately include grid potential modernization would does execute $X XXXX, five if support capital earnings infrastructure expect enacted In base billion we year of investment. and growth

legislation, Speaking to of now Page direct this of you presentation. important I the X

Missouri, know, for expectations support grid, Consistent around framework more on As state’s create in with we, critical been to investor-owned the we’ve our the to customers in focused smarter and modernized country, energy energy needs meet will the electric tools energy infrastructure us investments their for colleagues significant you support and seen regulatory to benefits several a our provide to along Missouri. jobs with Illinois greater years, for reliable industry energy and enhancing and have infrastructure to manage future quality investment. energy position lead customers rising policies usage,

XX, this on also savings legislation With of head of these to is PSC. development and timely fashion. The can vote. would create frozen passed well for now if Bill drive provide federal certain on the in XXXX rates X.XX% legislation Senate Utility the collaboration will Representatives. electric XXX XXXX XXXX. Bill of to Commission benefits fair as will benefit this investments. Further, corporate from the in The hard most of this overall to to be stemming yesterday bill and support lower is The Bill report approved of provide are this the requested the passage in be annually and Electric Senate raise The incremental increases legislation Service for of an the at paying am a result pleased mind, strong a that Missouri customers, long-term by outlined ability many certainty as as extended The I sales. infrastructure rate provisions also March be rate bipartisan Base income a by on provide. provisions capped incremental XXXX. XXX significant tax average by authority benefits the will invest customers utility would to through that XXX If Public In good compounded Key benefits Senate House billion pass significant parties. currently page. our service electric those jobs legislation Senate enacted, earn Missouri $X the written, through returns to in customer by one the that will Bill rates compromise onetime economic very through work,

Finally, legislative on this PSC bill oversight. Missouri strong XXXX. would maintain May session The continued ends

plans update an Moving our now investment I X on for referenced generation earlier. that Page wind to

reaching the rate the important to negotiations achieve be the in compliance And Organization our use energy least costs agreements benefits Standard. multiple filings plan wind with projects. provides Transmission are State’s Renewable generation of necessity We’re and Energy studies Standard for customers, wind adjustment these will construction we convenience interconnection we timely megawatts requests Standard. the This XXXX. Energy the first half Missouri recovery Missouri’s mechanism. with the to We Plan purchase development, will with environment we certificates component and Integrated the because We it look of the of developers, PSC, developers we Upon believe certificate will communities clear to to for executing forward for our this project the file underway of to at in mechanism advanced Energy for which already compliance XXX with in of expect include Missouri of for each renewable Renewable authorization finally, deliver with related Resource made rate serve. Renewable and request Regional to

now Turning X. to Page

investments only the industry delivering next needs position be will long-term strong This future success of execution in we to Ameren over that we not value of and processes. expect XXXX, bring look for future, our customers’ transportation our and energy are we to We making technologies With of beyond. decade and to designed expectations. electrification Ameren mind, position the plan other year we successful rising also customers, critical will on and the the results and also focused will grid shareholders. Ameren increasingly meet greater believe this serve industrial even enablers as sector that advancing be will our energy put As our our the is for already five to important to view it’s that communities increased

diverse portfolio investment XXXX to included September, Missouri’s In targets grid, the a also XX% reducing an in we fashion. IRP a reduction cleaner, Ameren levels. to emissions, on in by more energy transitioning last committed carbon issued to from responsible XXXX Ameren for are included Missouri’s generation focusing addition

beyond. and at We’re we to to are position also is issues, actively taking five next Ameren The electrification. looking engaged and Illinois line regulatory that including bottom increasing support and next that industry for are across-the-board and years, the XXXX, the emerging success grid decade today both modernization Missouri in continue steps proceedings in in

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I’ll our business a will conditions. approximately driven growth, X.X%, all results the future our you other thank joining yield earnings and call turn course, outlook, peers. attractive over of which strong now utility Marty. very be us combined currently dividend, dividend for return Of opportunity total believe our provides for by decisions compared Marty? to regulated in and Together, with we earnings Again, a today, solid to escrows shareholders

Martin Lyons

good everyone. and morning Warner, Thanks,

earnings we GAAP Turning Page earnings $X.XX to share compared of GAAP per presentation. of for prior of $X.XX now the Today, XX to our share reported year. per XXXX

or $X.XX taxes a the included noncash earnings see that deferred combined can as the you reflecting a parent two charges, federal decreased result primarily Illinois rates. XXXX in and of per the at of revaluation income $XXX diluted table in As the share, tax GAAP earnings by company, page, on changes million this

$X.XX GAAP $XXX of compared these per earnings for earnings range share. $X.XX share, were diluted to guidance to per last of or between our which differences core no Excluding charges, There XXXX $X.XX Ameren XXXX. and recorded core favorably million

per investments to at ATXI average that allowed with FERC ROE for of XXXX the In factors infrastructure was Page to higher in Turning the benefited the return late overall prior core for a from per a share by that adjusted XXXX highlight to XXXX share increased extended lower approximately here, compared $X.XX XX% our level. earnings We XXXX XX. Ameren key $X.XX September equity year. earnings to based on $X.XX driven segment ROE This in drove $X.XX offset Ameren by XXXX on share to increased growth to Transmission, segment from earnings Illinois, by mid-May in per Transmission results. its increase MISOs contribution primarily the Starting XX.X% temporarily and an current XX.XX% of partially compared XXXX, the FERC-allowed XXXX. when from

Treasury Turning to in rate grew investments share segment formulaic higher XXXX a per Electric this as in on $X.XX $X.XX well based a under making of Distribution. reflecting allowed average slightly as equity were share XXXX, X.X%. of ROE X.X% of XXXX Illinois due increasing year for allowed Ameren Earnings XXXX distribution up XXXX for compared to X.X%, X.X% Natural per the from infrastructure return investment. earnings from to Gas up XX- The prior Ameren yield to infrastructure the was average year. on Illinois

to largest Moving Ameren Missouri, our segment.

primarily electric from the rates earnings per efficiency to of incentive sales, the Here, the was depreciation milder in by increased largely performance by share from related earnings unfavorable new through energy higher plan. $X.XX temperatures, of service lower per XXXX XXXX XXXX and and XXXX. impacts share to expenses the driven in summer The benefit retail offset electric XXXX transmission award absence $X.XX

lower income tax lower comparison rate, with largely Ameren impacted share- was by results the positively core associated parent Finally, offset effective compensation. by other benefits and which was a based tax

Missouri electric provides and plan leap energy on benefit XXXX of recovery Kilowatt-hour energy sales a to to the quarter due do resulting moving, cover no residential Distribution flat, sales X%, XXXX agricultural efforts. and X%, large during customers Ameren me the basis Missouri for efficiency electric effects first in ensure while of energy sales basis Ameren kilowatt-hour excluding Weather-normalized Recall industrial and to MEEIA. Illinois excluding revenue decreased not which impact to Illinois commercial day briefly to XXXX. electric lower sales X.X%, combined beginning Missouri customers rate day earnings primarily Madrid a Before driven the Energy margin down New shut sales and the affected reduced full operations trends for our kilowatt- changes hour sales products. Weather-normalized exclude of sales in plan to Electric effects. are and from since smelter, the earnings to let on processor were to in commercial to We not our residential because that and sales the low- Jobs decreased XXXX compared MEEIA Act excluding that sales Illinois, XXXX. provided kilowatt-hour Future combined leap cause, MEEIA customers matter industrial by effects our Missouri under the by increased customers efficiency efficiency, a decoupling to sales Illinois the sales

Page to now XX. Turning

and to utilities, federal flow of discuss capital would outlook, reform. I of impacts tax benefits many our customers for we with to discuss investor-owned top tax the our retain page. investment the together earnings new on nation’s both I important like Working outlined XXXX and cash this five-year as portion were shareholders and plans Before of able income

and expect the the that XXXX taxes, In the flowback deferred operations base lower billion the at depreciation bottom XXXX decrease flow $X rate terms end-of-bonus noted by the period. on new approximately rate tax the will of cash taxes as of we for increase excess over of of and page, impacts deferred through Ameren, combination from the

we be deductible. company to our interest expense addition, parent In expect

associated the and tax company costs. unrecoverable benefits reduced parent with the federal However, other lower rate

a rate Overall, significant customers in corporate charge Warner non-core outlook, delivers earlier. earnings the federal income to strong federal earnings I XXXX in the Finally, change tax resulted that benefits noncash, supports as our and discussed reform growth mentioned. to tax

Moving to presentation. XX the of Page

$XX Warner shown of base page modernization business legislation. rate period incremental Missouri billion an expenditures XXXX growth the overview proposed for related capital the by this generation Note, planned provide discussed pending supports on investments expenditures earlier. grid approximately rate segment wind and Ameren that Missouri’s XXXX and exclude capital through Here, we our the of to base

XX. to Turning Page

federal $XXX a assets depreciation at tax Here, depreciation makers, include the tax assets, in the under law. the sources, we tax page. significant new expected are The and tax retained not deferrals was substantial noted infrastructure outlined the currently funding prior primarily between accelerated and for income earning approximately tax tax including investments parent million the are company return. driven that The differences on for timing purposes deferrals financial statement by which

cash flows issued, plans, of year I period. our impact benefit capital flow tax expect as reinvestment discussed, newly reform Given shares over expected now we and so to other including and to market-purchased, are expenditures five the cash continue using our for our guidance cash and than the just rather do as operations, requirements, from that we well dividend employee

equity enable this a million funding credit of expect will and to XX% to target metrics of approximately capitalization This approximately strong equity. $XX provide action We annually. maintain us

to our I of discussion Moving to Page earnings a XX our key like now transition of drivers guidance. to impacting XXXX would presentation.

Illinois to on federal income ratemaking. formula change expected earnings made ATXI and Beginning variances rate. variances benefit earnings key we The Ameren EPS down Transmission, stated, XXXX XXXX page per earnings earnings noted results. the $X.XX under our be range share. $X.XX to and difference Ameren quarterly next, On XXXX guidance, additional current with are drivers to tax compared provided of earnings a of between investments as the segment and Warner you behind this in expect we to comparable to in the by broken FERC’s assumptions and reflect diluted in from projects have As calls our listed XXXX

XX.XX% a the point from adder continuation current membership. of MISO guidance ROE, Our which allowed XX assumes includes basis

when second case decided. The the remains and pending know MISO will at complaint FERC, don’t case be ROE we the

Electric increased Ameren to XXXX from we ratemaking. additional investments infrastructure anticipate XXXX Illinois Distribution, Illinois compared formula made For under earnings in

yield like XXXX formula-based ROE Gas sensitivity the rider. discussion qualified X.X% Transmission Completing Distribution ROE X.X% earnings XXXX. from incorporates investments Ameren of allowed Our allowed Illinois a X.X% on year Illinois bond of average basis page. businesses, under that to have distribution gas for guidance Ameren benefit the of Treasury forecasted in the our allowed are an changes in this to to provided infrastructure state’s Natural a earnings we expected XX- using ROEs also are compared included for Electric the rates timely in mention a would that I the Illinois and to segments Ameren the on

Turning Page XX. to

earnings Ameren that affected first Missouri effect increased in are Our Missouri XXXX. by to favorably took be to in are rise quarter expected Service expected XXXX. Electric April Earnings rates X, the

Callaway positive scheduled of higher higher-than-normal nonnuclear expect in increase In expect outage approximately earnings by refueling these to in XXXX XXXX. to maintenance year other weather operations nuclear XXXX expense an Center addition, driven outages. Energy are refueling approximately by and is Partially $X.XX is we plant to XXXX there The impact expected offsetting compared scheduled cycle. would favorably and The per XXXX. Callaway XX-month and XXXX, a our we the $X.XX outage of this earnings is per share share of by refinancing scheduled Further, Ameren the on maintenance lower expenses, no of maintenance expenses debt absence the next XXXX spring for since primarily results. drivers, these and XXXX compared benefit to outages these result and return-to-normal for earnings interest Missouri

Missouri’s with to expect lag associated we expenses. XXXX regulatory increased depreciation addition, results In Ameren reflect

assumptions. to now and Moving Ameren-wide drivers

ratemaking. the decrease tax taxes. deferred excludes effective XX% last and the flow reflecting tax Ameren Illinois of will a an rates temporary lower possible year would as beginning benefits that lower this and service of guidance rate rate. of rate benefits income approximately of The corporate federal of formula of retention Ameren rate year’s of of Transmission the tax expect from core reviews result rate year, a this tax substantially earnings We note flowback Electric federal cash XX%, from be I lower in our reflected XXXX Distribution or any excess as

expect While we Gas in our the and these unfavorably rates by be be reduced to per of Missouri Illinois Natural do to share federal reviews determined, with $X.XX parent year Ameren rate customer to XXXX timing lower and costs. of customer adjusted earnings tax we the in has the tax benefit for been company Ameren expect not benefits rate. the comparison Further, impacted for associated unrecoverable last other reflecting

reinvestment XXXX a like the employee impact use earnings I we benefit plans by our for minute to of issued Finally, also sales our shares newly per outlook. discuss and to share. dividend to take unfavorably expect would $X.XX electric

as MEEIA up efficiency to the our well We expect sales year, commercial compared last programs. effects to to as flat to weather-normalized Missouri energy kilowatt-hour to of and residential industrial slightly be customers our excluding customers

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then to Page Turning XX.

free XXXX, $XXX flow approximately anticipate For we of negative cash million.

billion expenditures side by provide business. our of right this capital a of $X.X we breakdown of XXXX the planned On page,

reinvestment combination short-and employee shares through the expect mentioned long-term benefit debt well negative and to and previously issuances debt as flow We plans. as fund for maturities cash a our borrowings this free of dividend year’s primarily and common of issuance

Moving a select now regulatory discussion XX to for matters. Page of

the pending Ameren to MISO second base-allowed the reduce at as Transmission, mentioned. previously remains FERC that they seeks For owners complaint transmission ROE for case

New expect England as complaint transmission take both consider court ruling case to FERC. motion as the dismiss the FERC that second We case influence ROE ROE recent owners’ the the MISO will the MISO well may time as to the commissioners in

this electric effective intended. Illinois a annual with Electric work Illinois distribution at Ameren approved is year. ratemaking This continues of that to December, rate In in ICC as the to beginning update Moving change our formula consistent the rates filing assigned new outcome Distribution. the rate proceeding with

filed Page rates Last $XX $XX estimated for Moving to of a Gas in million the $XX distribution million a million that year test request Natural increase an XXXX revenues we and with regulatory XX ICC. annual Ameren month, This would infrastructure Particulars this or is rate this by plant, otherwise noted be be expected XXXX rider. XXXX. new qualifying December QIP, rates in of recovered filing gas page. XXXX Ameren decision in of case Illinois effective required using ICC gas matters. under are includes a future January with annual on An to

Missouri the utility regulatory pursue this customers. recommending matters. issued to open income federal PSE its for Turning Earlier proceeding Missouri week, the savings the commission rate pass rate report tax staff to on a to to from each lower reductions

if XXX a federal lower course, on as the written, its rate would enacted, timely pursuant fashion, provisions. Of income Bill pass to electric to tax savings Ameren Missouri currently in Senate customers is from

our deliver Finally, growth strong will and as turning XXXX core to successfully to in Page strong summarize. growth XX, we again XXXX earnings expect continue execute in I earnings strategy. delivered We to

peers. investors favorably believe an to prepared story total, offer total Ameren compares we remarks. concludes your an look management. and we to our to growth expect peers, attractive utility invite growth now continue attractive rate by of with growth disciplined financial the we favorably driven As ahead, growth share this our regulated earnings per Further, compare we shares we our base to shareholder and We expect In dividend. continue strong return have This questions. that

Operator

of your Please Our with question. from with Merrill [Operator Julien first proceed Dumoulin-Smith Bank Lynch. Instructions] America is question

Julien Dumoulin-Smith

Hey Congratulations. good morning.

Warner Baxter

Good morning, are Julien. doing? How you

Julien Dumoulin-Smith

Great. Thank you.

first contemplate? quickly tax give you much the to So new and they’re that hash against latitude these I billion putting et inflation $X you against previously does that when the rates the ask How much of that on wanted there? reform, out legislation kind does How in cetera, program. in $X real bills billion contemplated that

Michael Moehn

think said. and Michael we’ve it investment, XXX, this as we this cap. prescribed of $X billion that legislation really – certainly been we is could about written, incremental is that Julien, what don’t that Moehn. it I clear support we think that we do would I underneath mean, is haven’t

Julien Dumoulin-Smith

how Clearly, strong committed your Got two are get And that a either spend, you how equity Excellent. reform you’re existing can financing if multitude then metrics, the projects? to I you factors credit commitments? hear front, on committed? a you if financing successful, about it. elaborate but drive higher of of needs thinking the bit clearly, there’s Perhaps to tax your on your incremental needs saying incremental little and either you your debt would

Martin Lyons

Julien, this is metrics you we today. Marty. ratings today, very we When at credit the look Yes. that that we credit and ratings the with credit happy have the have are

is issue the for are S&P S&P materials; in FFO with to debt Ameren at BBB+, mean, at of our XX%. To sense, for shown ratings threshold that there, today out BaaX FFO-to-debt you Our us a has the for BBB+, threshold as I is and BaaX. Moody’s, give the for metric, that And XX%. the Moody’s,

as business you strong in to of the we several those on years to worked today, going forward. see So we’re as and We’ve and provided can always looked move to the company, hard sheet, past to we’ve materials time, both we of the balance over risk say, improve, strong the continue credit a work through we metrics. I’d go fronts look, this profile maintain

As sheet and goal investment growth keeping go reform, looked tax was we strong we employee the balance base looked with we plan capital today, flows, at we the of cash and the at impacts plans up ended including the our that thinking out laid and the ahead keeping certainly dividend strong credit programs, prudent the that reinvestment and issue benefit again some it metrics. under of equity rate we

seek and the looking capital success ahead assess as regulatory we’ll the we on rate to with expenditure positioning we overall sure a metrics, plans, the back step of but update in and again growth sheet, returns keep As environment base a needs the to backdrop those funding strong and earn ahead the we that equity look investments and capital make wanting for plans, as investments. importantly, credit balance fair we’re those plan

Julien Dumoulin-Smith

and specifically, to program nuance can. under on you this, legislation proposal? what timing expense, of over of do And just $X at the commencement earlier present, start When you period your could the or intent a that actually you time, billion What’s further if is contemplated? spending? the spend

Warner Baxter

Warner. is this Julien,

I out is would We is of been said it lot plan we ultimately $X be. for these what That’s would through a think what And the be we clear. when five-year XXXX. legislation had plan would a passed, billion. but expenditures spend we’ve this a predicated there. That’s

And talking what is been we’ve so through XXXX about.

Julien Dumoulin-Smith

Got it.

fairly so ratable. And

Warner Baxter

sorry? I’m

Julien Dumoulin-Smith

ratable. Fairly

Warner Baxter

a speaking, good Relatively yes. way think is ratable fairly I Yes, think it. to about

Julien Dumoulin-Smith

you. That all. Thank

Warner Baxter

Sure. Thank Julien. you

Operator

from question. Glenrock is with Please proceed with Paul Associates. question Patterson next Our your

Paul Patterson

morning on everything. and congratulations Good

Warner Baxter

morning, Paul. doing? Good are How you

Paul Patterson

doing I’m great.

Just X.X% growth your with long-term see does pretty growth, in to rate base Missouri, base that respect include – happening legislative you this impact? in for include the that what does much slides the rate

Martin Lyons

Marty. this Paul, is does it not. No,

when expected. what the it at the I’d as rate then left. the from, see look tax you Warner of otherwise the we billion taxes out $X.X base changes conference in on and we to expenditures And includes shown in say, slide, it pointed that are would includes that So of deferred impacts the call, table on the versus the reform impacts have

Paul Patterson

Okay.

think in good there’s point, about Is this? could Julien’s to it? a that that way guess, see additional I we to upside So

Martin Lyons

Yes. Yes.

Paul Patterson

range base the end what rate – that you, you on you look this long-term earnings not top at lowered Is sales of at maybe lower little to then credit guys higher growth rate I’m saying? have little what a has a sorry, your we earnings know why a in follow higher look growth just compared through and Okay. a but top growth rate base? simply just growth previous rate a you’ve you, of It’s and growth you’ve lower – have you down. have base that that X% we completely and it Do of the what the function gone And bit the now intuitive got the that when could And and change? end the earnings bit. I’m walk the rate I

Martin Lyons

strong, X% growth a compound especially that look, goes have EPS the base with And Well, at of Yes. very plan strong I of is annual, it, have off X%. think I we coming our rate very base a strong X% we think $X.XX. that growth earning along XXXX also to

that, we that. again, it the levels, those also of for of that believe would funding is, the variety our equity outcomes, spending base equity – case employee and plan. But growth very the think funding the about is we plans like. assumptions, should a produce about and base the rate think that think certainly of it’s you assumptions $XX Paul, is reinvestment to assumptions all use I including And the laid it, Treasury of rate economic Again, strong, dividend terms X%, X% benefit we’ve in rate I And it laid given about and right what does conditions which incorporates of I out. just as that annually. So say from million out, includes that

Paul Patterson

of made of are a there there and fine. was guys thinking is not necessarily Okay, a just there that? ratings And this I’m in wondering, you. opportunity And commitment is another of don’t supportive cap guys obviously I’m you like anything be utility, perhaps looks on like double sort the now your among But – at general, additional any – the what about or PSE wondering some and could have regarding just been that consolidated leverage – credit just yesterday basically to perhaps comments you the it or Missouri discussion structure. commissioners them majority have

Martin Lyons

both And utility company you we well entities, case had that Paul, in time our capitalization time, say, the And sheets Missouri the would credit out parent I subsidiaries. that Ameren is for on at our utility’s all relates time, we I think be look a strong and as the have Ameren through over maintain slides worked target around mean, We we’ve it is ratemaking third always on as capital of Missouri Missouri, legal balance laid if our through to metrics to based as would I that the to expect time. for XX-XX. structure. our

Paul Patterson

much. Great. Thanks so

Operator

your with is with Steve proceed Research. Our Please question. next from question Fleishman Wolfe

Steve Fleishman

the you base when talked likely it. just At about are you now, some of suggested of base? base plan assume then wind wind passes, this if we this could as point to if adjustment then do should those any part doing you this additive, to the and the the first modification that legislation do So the And projects, – is be not plan? just we meaningful if you the see

Warner Baxter

is this Warner. Steven,

as plan, additions, pointed for very I We as think base on. to meaningful for work presented clearly we’d our hard continue well execute wind modernization. out opportunities opportunities two have both grid the to for and we that we’ll

line, we’ll going saying we’re the it’d But plan we the any do so see to the as make premature plan. exactly to changes with today. be And not we’re it bottom what overall say to

Steve Fleishman

projects, winners, proceeding. process just on So And part both of and little explicit kind approved you kind Okay. CCN in would The of – treatment that filing, project have file the then be wind rider CCN. file rate the you’ll how more is so all could a on of be renewable we you’ll the once just one works? the

Michael Moehn

Steve, Moehn. right. Yes. got you Yes, it is Michael this

filing, we filing been And up telling we’ll so for wrap XXXX. we these I to part could to that folks mechanism correct, in I you’re we’ve been that first CCN for use the think regulatory renewable anywhere the to make mean, of what And saying recovery would half contracts think, the I projects. the that called months as XX from these have of be And we as of complete. the process, conclusion six what’s take RESRAM, the request

Steve Fleishman

Good.

you. Thank that’s it think I me. from

Michael Moehn

Thanks, Steve.

Operator

Avon your Please Our Capital Advisors. is with with Levi next Andrew question. from question proceed

Andrew Levi

Hi guys. Levi Andrew

Warner Baxter

How Good morning, are Andy. you?

Andrew Levi

It’s Levi. Andrew

from going O&M that came But of plants, questions. incremental what’s exactly on two into to relating was can $X.XX and maybe EEI in there XXXX? part not that away disclosures because or you goes on just the that more whether of and one of where Missouri go Just kind that your of

Martin Lyons

look our a particular costs. O&M company schedule you a would I’d is number goal higher when basis. a been some to And – as non-Callaway And year I year. When say a certainly step recurring some it our back know, a just that this I in this look, our outage as of at improving Yes. well this higher-than-normal you necessarily overall, other especially Missouri of Andy, primary not driver a that think bit be overall, expect the we’ve to or And year-over-year. as and close number was as of allowed we continue consolidated little to it’s each very have Marty. earn that’s our you it for jurisdictions return nonnuclear returns. through earn in that on to thought to time our year, Missouri, prudent we outage have in

Andrew Levi

Okay.

kind of put don’t to how the at of was I is the back of out nature, say onetime the in – – Callaway $X.XX, So want much there because but Callaway outage?

Martin Lyons

Andy, that breakdown through don’t concentration on just other some outages necessarily of say onetime. I in a higher occur exactly this guess These I years. other I do of for you, call year to have number wouldn’t kinds them than them time, than a

Andrew Levi

Okay. capped Got fuel increase that. then or Missouri? And Does X.XX% on that that’s include the not? in

Martin Lyons

That’s Andy an all-in cap,

Andrew Levi

that does So fuel. include

part So that if would the go cap? up, fuel would of be X.XX%

Martin Lyons

That’s correct.

Andrew Levi

And Okay. something that is part cap is – well? project, wind that on as the to the

Martin Lyons

it Yes, is. is. It

Andrew Levi

much. Thank it. Got very you Okay.

Martin Lyons

you. Thank you Andy. Thank

Operator

Please is proceed from Ashar Visium question. Khan question with Our Asset next with Management. your

Ashar Khan

morning. Good Congratulations.

Warner Baxter

you? Hi, Ashar. are How

Ashar Khan

approvals at that kind we the an tell kind the you just year? half in of – look of first by look months? of Could us we timing just RFP, next, you as this said, wind how the of four Could the some the should of you announcement timing describe two,

Warner Baxter

that, to address Michael, please? want you

Michael Moehn

first we which serious RFP up CCN talked been and we were XXXX. are couple of now soon. filing Yes. And hope have contract committed through times, a negotiations, to wrapping Again, of to be process just the we the we’ve the as in in half this of middle going

Ashar Khan

once we how then frame – file should And look you what at? it, time Okay. approval should

Michael Moehn

to about a approval been of kind we’ve process, saying CCN The process. that XX-month six- it follows typically

Ashar Khan

XX to months Six months.

so you much. Thank Okay.

Operator

from with your with is question Markets. question. Please proceed Paul Capital KeyBanc next Our Ridzon

Paul Ridzon

because been of you’ve House? hurdle, that on focus Just so the sense a you and but there’s give in clearly can tone cleared much Senate the the

Warner Baxter

Yes. think discussing now is, said, Paul, the ask is the turn members step this is forward Representatives. bottom Senate we Michael And our significant that Warner, to the comment. benefits in to Look, we’ve of we’re forward, the the House. a Bill Senate passage of the positive all I this to to line to bill but attention look with do and going I’ll real House going we’re of the is of what as XXX

conversations. You over the bill on so that have mind it’s and the so looking those to just to in to we’re passed House, forward this Senate that keep now moved having

Michael Moehn

the mean, bill compromise. hard excellent and add, this would I it’s Yes. of I bill. an work just look, I is result lot a

to so the benefits benefits we’re I our the the demonstrate think as that, to us Warner going Missouri. customers, said, to benefits to of and obviously state

the look House. with engaging forward we So to

Warner Baxter

clear of $X mean, Bill talking significantly significantly investment spend we what Michael, And, I to at this what to bill, Senate is little we before. bit a state and that is if Steve’s just passed, this a that XXX add about. question make billion, in guess or we’ve maybe the will I Missouri. and little we’re more to When investments was been look more

so And absolutely that is our plan.

tools robust them even consumer Michael of, And what this more our terms compromise compromise. was energy they also This to so talked with manage grid, a giving just have customers benefits them not the that that modernizing made the comes bill to already robust. and our that in significant usage. but protection want took about

House about by So these with types driven the will Representatives, going the are this including that significant jobs things number bill. of that of we’re a talk to of be

Paul Ridzon

color. good That’s you. Thank

Operator

Kalton Our next question is Please proceed from Securities. question. Wells your Fargo with Neil with

Neil Kalton

Hi, guys, are you? how

Warner Baxter

Good morning Neil, you? how are

Neil Kalton

Good, thanks.

Just a question Missouri. in on wind

you too the unique? you us not sequenced that you closely would little to before proposal that, Or for good think project? your maybe of I a proxy advise Empire Is bit are proposals to and sort Empire between that a look guys.

Michael Moehn

Which mean, in referring terms Neil, are you of their… I assets, to?

Neil Kalton

comes something you would advise that your be What unique would out, there’s if I’m the Empire – that a getting proposal to that goes, how that’s is good Or us proposal? that is your versus depending readthrough of process simply that proposal? on kind is to negative

Michael Moehn

Yes.

conclusion. the really through that’s yes. us which to proposal, you mean, Again, mean, requires RFP robust I renewables renewable this. our just of in in XXXX. that’s I doing about We process, there bringing you have we’re to think, I think behind back if by the driver why the the standard this, a process place went step have out that and a we’re you

that, along We’re with that we’re working through then the to all issues file going and the come CCN. transmission

And so in commission the Missouri. typically with file think state that’s you I of – and the here the that process

So very I overall about ours. about comment very, our strong feel we good about think but can’t really feel Empire’s process. I

Neil Kalton

on capital plan. Okay. Fair the then enough. follow-up just a And

the So be the spend might a moving else plan should the be pieces that be I as way? the would plan some everything somewhat lot there and base base be there’s through we And of – additive? comes plan? of fluid there that could if Or base and but Missouri, being incremental know would sequenced capital then think here, of in some

Martin Lyons

is Marty Yes. again. Neil, this

and we’ll Warner before, plan any case, today. As we Senate to whether premature have plan step discuss it’s funding we this the base expenditures, we But we’ll whether as Bill overall to – that the reassess and back they’d said to stop said, to we’ve the capital XXX, make related changes plans. would the said the whether in be we’ve capital they’d always and extent wind, related to additional have be

of We are the certain Missouri. state have line get we XXX that finish if Senate across Bill we the will put that to significantly in capital that we said repeatedly more work

think of And sort look our of thoughts those the we so I’d about expenditures. and that as say incremental those ahead are possibility

Warner Baxter

the add Marty. line. I similarly That’s wind, would just And with said, right. Well bottom

energy We will the that have is Both contained important the investments of renewable a very in things Missouri. then those state constructive of regulatory mechanism standard. than and drive

Neil Kalton

much. very Thank makes That you sense.

Operator

question. [Operator your Capital with proceed question Avon Please Instructions] We have follow-up Advisors. a from

Andrew Levi

part legislation of spending. me the It’s me parts X, described Slide read of is and infrastructure where to you because the I subject It’s again. the would but wind this I’m mean, the having I’m the not just legislation, sure – reading why still not cap? be

Warner Baxter

maybe bit if I’m It’s sorry, you. – don’t you to mind, could a little Andy, your So hard you hear loud question? repeat it’s

Andrew Levi

battery I’m headset off, so to down. the is going sorry. – take I’m going

Okay.

legislation, than your do. be based Page on investment Am obviously or… and that legislation of on X better obviously to your be on of I would subject that reading the look deck, slide you’ve you – cap. slide you was, But I and mean, if not I the wind would your know So not parts – wrong understanding the my

Michael Moehn

underneath fall cap. does wind the the So

get able potentially I again, you is to exceed that and you’re, trying that case as et cause the to what a you’re defer X.XX% future slide is underneath that that the if the to for riders think cap, FAC, either long cetera, explain these RESRAM, as rate the recovered.

Andrew Levi

Okay.

it’s would XXXX know, defer So over. max where like rate and it then to what in let’s case. that Arkansas say, that million you $XX you’re left but X%, like you there’s XXXX, saying? in you plus If in added true-up, so number, that so don’t next the I the just to just – million the amount, FRP X.XX, $XX another kind rate capped it or X% would of or say, the in certain $XX Is a is rate recover it’s on case – but XXXX case it know, at don’t I million. at be out you’re in be But like let’s

Warner Baxter

much clarifies That you. better. Thank great. That’s Yes.

Operator

I closing gentlemen, Fischer reached session. back and have the remarks. of our question-and-answer we to call Ladies to Doug like end for the would any turn

Doug Fischer

this on participating for you call. Thank

on year That Let our you available me one the remind will call again. a be replay of for website.

or contacts Joe should Fischer; questions may release. directed me, analysts Muehlenkamp. Kirk. call have be Financial If listed Media you associate on Doug my inquiries Andrew our to the should earnings call

thank you interest have your and release. a Our day. for great and contact in Again, Ameren, thank you the on numbers are

Operator

conference. concludes This you. Thank today’s

You you your may And at this for thank lines participation. time. disconnect your

Ameren (AEE) 16 Feb 182017 Q4 Earnings call transcript