AEE - Earnings call transcript Q1 2018

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Operator

Greetings, and welcome to the Ameren Corporation First Quarter 2018 Earnings Conference 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, sir.

begin. may You

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

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

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

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

Warner Baxter

quarter share compared electric well for Ameren to of first Missouri everyone, April to increase rates you XXXX we and joining morning, year-ago Ameren the earned effective temperatures due of in first year mild Thanks, winter share X, $X.XX the thank service period. Missouri XXXX, share per primarily as as experienced was sales, year-over-year colder The this to in $X.XX earnings driven very temperatures by higher compared Earlier higher retail electric Good per of us. quarter Doug. XXXX. announced per $X.XX the today,

Gas. pleased discuss earnings factors Ameren the in $X.XX on made in and moment. on and will Marty results from share. at benefited comparison the Natural increased the more quarterly Ameren investments detail report XXXX Transmission, other Distribution these range Electric am Illinois Illinois addition, In earnings infrastructure track results driving a that share remain in deliver to to strong $X.XX of to I we per per in also Ameren

our We management. strategic cost strategically operating focus plan, businesses includes executing our continue on safely, capital which to and exercising allocating while disciplined

to Moving Page X.

continue Here over is we plan, plan very our we years. in strong executing long-term growth. earnings been That expected which to have to strategic reiterate last result several well the

As you invested can businesses, total recovery. capital see over we supported predictable frameworks are where right months side fair, this expenditures of transmission and timely during of on first X and or nearly page, XX% million, year, regulatory that investments our by the $XXX provide distribution of in this the cost

the completion projects. we Transmission, rivers reliability Ameren schedule Illinois Ameren projects to end Mark and continue Twain on make investments Illinois local XXXX, and by in For significant the of remain for

including replacing a continue, system. investments Missouri, For entire for infrastructure, deploying additions, to reliability and service investments finally, Gas making aging focused modules. continue and grid meter meters on be improvements Electric and our Ameren Ameren electric Natural system businesses, and substantial supporting gas Distribution Illinois across adequate providing And modernization capacity smart safe

to that the key Ameren portfolio. to electric of of initiatives are Missouri. enhance significant energy strategic the wind incremental are support deliver customers and Ameren long-term efforts Missouri's benefits we Speaking add X These will our framework, and significant Missouri to plan investments regulatory that Missouri, important our State initiatives our to working on generation

you update the through our of Missouri regulatory strategic to enhance efforts Page X. the framework these to first I'll now legislation. Turning on initiatives,

benefits other Missouri legislation utilities, grid. to in with last the state's with over stakeholders state modernize has policies investments would reliable tools and Consistent key energy as leaders to several investment have Ameren smarter more around investor-owned and As the incremental customers usage. we seen for future lead to in the infrastructure through well support know, policies manage energy electric Illinois grid you support as a modernized the energy years, energy worked energy their provide and country, Missouri greater to to

policies significant energy customers' modernized expectations quality meet create In jobs our addition, to for and and will rising position needs Missouri. us

passed Missouri's be benefits to our would the customers enhance sent to significantly deliver invest consideration it our this In now an Senate $X Senate infrastructure by without strong framework. is to billion electric earlier year would As Bill particular, enacted, future. a passes for will better in taken Representatives. it you Senate significant House up to full the Missouri If Bill XXX support incremental on for bill Missouri the ability The bill regulatory the of XXXX know, for Governor. most of the position House bipartisan amendments, Missouri vote. ready XXX be the to If and

Electric provide In and the our addition, compounded granted electric in maintain oversight would win-win X.XX% retroactive PSC will legislation that the legislation until would protections. development strong authority savings continued our April certainty rate at passage to X, XXXX. larger Missouri line of is benefit of economic The January and very and shareholders. fashion, annually the certain to rates to the pass create sales frozen capped customers on also it consumer and customers, XXXX. timely State income a Missouri for be a PSC average The increases rate for stemming customers, rate would this onetime X, rates XXXX, Further, customers, tax bottom be incremental would the the legislation from base from Missouri would be this overall to lower will provides. federal

closely important XX to of end passed. this continue will get session on the We May key the work through to stakeholders legislation with

Page on plans. key Moving another to an generation on for wind our initiative, investment X update strategic

generation Missouri's with compliance Energy in Missouri's proposed investment billion approximately Ameren at on to least of achieve for progress Renewable megawatts make Standard. to continue XXX We wind $X

In executing Missouri these with continue to expect sites balance for within customers, needs fact, clear we to serve. PSC. by to ownership at forward our and we this important wind of months XXX necessity Organization are benefits Transmission XX certificates And the consideration. file on look expected generation certificates and with Regional the of communities the already because of for interconnection least of our of Resource We underway filings. discussions under would hold we are Integrated and to we June X finally, developers of and component wind deliver of studies our for file Plan other for this Further, Decisions expect year. XX to convenience megawatts it believe to ownership for requests necessity convenience environment

X. growth XXXX we choosing includes XXXX is base growth a rolled by Page same to per for earnings X% our Turning earnings to share X% to driven of earnings period. expected February, forward X-year period, XXXX now plan, compound the rate annual primarily annual our expectation share X% the as growth In per growth which core This compound base. over

incremental approximately of long-term through our incremental $X billion earnings Missouri not by Bill attractive which dividend, believe potential shareholders with the results and XXXX. of combined strong strong include our rate currently utility peers. generation earnings wind In $X solid of our a Importantly, outlook, investment our in return compared opportunity approximately a infrastructure we yield a pipeline provides growth or for to projections billion associated Senate investment have total XXXX with Further, XXXX. the X.X%, expenditures XXX base closing, capital do of beyond we opportunity very regulated X-year

like would I and recent turn Marty, important environmental, mention before governance Now the over I matters. to disclosures to social our to enhancements call and about X

the electric ESG/sustainability in initial is First, these industry Ameren's part issues. to reporting social, the This a for metrics. Again, over environmental, sustainability Edison issued initiative, And available amereninvestors.com. will turn Electric uniform coordinated to March, now and corporate call substantial Both on governance supplement reports consistent Institute, annual and our which all last are investors industry we already finally, we you at week, more of thank EEI I'll just with Marty. by voluntary and today, responsibility us report. our joining report, provide issued social report related

Martin Lyons

and good everyone. Thanks, morning, Warner,

presentation. XX Page to our now Turning of

mentioned, year-ago of $X.XX $X.XX key $X.XX XXXX per share per per today, The the are earnings this the segment reported share earnings increase to quarter. of share quarter by for highlighted As compared Warner on first overall factors we that drove page.

the the entirely in First, were XXXX I would federal of revenue, a passthrough to those reduction lower expected corporate note like customers. savings expenses that reflecting offset tax income by to almost

is savings segments, For nearly pass electric on the to our And of respectively, $XXX Illinois XXXX and Senate have Bill Missouri enacted, and XXX federal that $XXX million approximately received we would in if gas tax million. to ICC, from total transmission distribution FERC customers. reach approvals already

Missouri, largest X earnings higher Ameren retail also the temperatures due higher period. primarily to back share, service share driven largest electric Now driver by results. to effective an up $X.XX $X.XX of improvement, This reported our per higher to per increase in segment, quarter share per and from of $X.XX XXXX. in XXXX improvement year-over-year was operations temperatures higher-than-normal maintenance experienced favorable mild the primarily first sales, the colder to offset April X, outages. in the very electric nonnuclear These XXXX, as scheduled by were other well to winter year-ago this plant and as compared due factors partially expenses, year rates

grew segment well per to though XXXX Gas reflecting income Natural expected as $X.XX rate, investments tax benefits increased Earnings year-end tax by reverse this federal share, to almost benefit for is as to Turning Illinois entirely related XXXX. infrastructure the lower Ameren results. this

and start Ameren operating increased reflecting all investments. across increased Finally, the were Illinois earnings year with had each up earnings Distribution we positive Electric a Transmission Ameren In segments. for infrastructure four summary, to slightly,

our me Illinois kilowatt-hour revenue program are combined to earnings reduced of efficiency Future let resulting for sales Electric basis because that a increased and sales the affect commercial Act Illinois this We beginning affected briefly Distribution months matter Before to provided X.X%, kilowatt-hour commercial for not that customers Weather-normalized Ameren do effects exclude effects energy sales the X no our trends the on customers Missouri Illinois, Recall combined year. basis of first first of moving sales, provides excluding full residential in electric sales and increased plan months by the Ameren X changes Weather-normalized MEEIA year X%. ensure on, electric in compared to decoupling XXXX. residential the Jobs a from energy cost, efficiency about rate Missouri earnings in MEEIA. our the since cover last under for Energy about on efforts. electric recovery and not to

drivers XX Moving would on our to to key now impacting guidance. touch our of briefly earnings I presentation. like Page XXXX

balance the XXXX XXXX listed of the continue be $X.XX per earnings a earnings and consistent expect not diluted since Select largely specifically will and As considerations we to assumptions $X.XX to they of I are in to page. the earnings Warner comment drivers for call. with February are discussed share. our this year on considerations stated, on self-explanatory on earnings range these

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

has Ameren second the no owners. of allowed status the the been to MISO pending case for For that change Transmission, in reduce transmission seeks the there base at FERC ROE complaint

expect allowed the to case in ruling commissioners the MISO the second MISO to motion the continue that We FERC will as both ROE New may future complaint ROE court the MISO as case, transmission the as owners' well England dismiss ROE. influence consider

cost decision months ICC cost. required formula next Illinois the ratemaking, The required new systematically review over time ahead, of annual or changes true-up cash this regulatory recovery rate distribution matters. Last file the month, flows our rates will in early the to we made Moving Illinois' updates is effective filing. year our expected year. any Electric update under over electric period to and of annual for in rate of utility in to December service such with adjust Distribution prior Under matter and to Ameren

after an of For requested Illinois for is electric decreased benefit update formula perspective, the service investments since residential substantial Ameren if incorporating all-in will approved ICC, by ratemaking customers. X% estimated began for the customers even energy the grades made XXXX, infrastructure have from rate in electric taking XXXX by and delivery

with XX. rates filed gas with the regulatory ICC Page updated our In future gas a this to year, Moving distribution Ameren's the with that matters, staff a and XXXX we earlier required incorporate A expected test have ratio. X.XX% to is for ROE request natural January December new up to year. in effective an this annual using agreements and by equity we in stipulations XXXX. decision XXXX, page, On XX% increase of rates allowed a for ICC be

tax open PSC recommending reductions income from lower staff February, the the Missouri regulatory onto proceeding a Missouri customers. the commission In issued pass rate Turning now and federal its pursue matters. for report utility rate late to savings each

a Missouri savings XXX and from enacted, XXXX, fashion rate to Senate pursuant electric if federal retroactively onto provisions. to the would Ameren bill's Bill lower X, course, January the is Of timely in customers pass apply

to will Finally, summarize. Page XX, turning I

We in expect we successfully XXXX, to as deliver execute earnings strategy. growth strong our

longer disciplined expect to As driven strong we the financial the we per peers. over utility regulated and share expect term, our to with we growth look growth of growth this growth by compare rate-based Further, earnings favorably management. continue

attractive In investors your that, our compares addition, our shareholder peers. That Ameren shares return an In have remarks. continue total, story questions. to concludes total we We to an offer invite dividend. now very attractive prepared believe, we favorably

Operator

Instructions]. [Operator

Merrill America question Lynch. Our Dumoulin-Smith line from Bank of Julien first the comes of with

Julien Dumoulin-Smith

dig with side of equation. a the the bit and thinking about little the CapEx this, You ultimately sort remainder the I the you little about here CapEx, about to XXX to on the awarded as if And investment time when will. of the if how and be Can wanted wanted the first incremental? XX. talk see filed by breakdown the the respect So balance, plan? the a up cadence line the I just June vis-à-vis you as dollars? XXX the on between the here XXX time should What they are megawatts the you in talked the wind being follow far we about it to of

Warner Baxter

timing Warner. with I'll on bit and the piece. comment more So I'll then Marty let overall start CapEx little is a this the Julien,

Public expect in agreements that with the for at June expectation wind with we by file filings of end said, we've XXX least generation And we'll XXXX. the and by then rest as of Missouri Commission to Now is certificates convenience needs megawatts our the XX. our fill of Service it

do his been they will and team Ameren hard continue Missouri so. in Michael So with many have to and developers, the working of

So a Marty, and comment that? about associated bit cadence to the with CapEx do little you want the

Martin Lyons

cadences, CapEx Yes. Julien, plan. when would the occur taking your question of our in terms relative to the

I our to production end by them service projects, the to all of regard how objective advantage upon order XXXX to think credits these get we tax the in in with is take finalize of negotiations. depending of

that megawatts XXX the goal here time with billion CapEx if they would frame. then, ended agreements, again, XXX up least example, really For occur were in approximately at And being or build-transfer the spending. of likely, $X approximately megawatts XXXX is overall

Julien Dumoulin-Smith

XXX were this? the the And why I just XXX? to clarify, is if established it be broken build basically, you've Is to read between on would interpret Is the XXX right a lines, XXX likely between and of transfer? that and to up the it sort way

Warner Baxter

negotiations. not, it's Julien. just No, our status really ongoing the It's of

with do negotiations a unfolding with really It's negotiating sites. the get otherwise. the time Yes, multiple the where into providing situation to all to developers day, of the not with and have we multiple developers, of we to whether see terms multiple be CCMs respect just just negotiations in So XXXX ongoing XXX the anything build-transfer megawatts service, the the completing ultimate really it end time with those that's that in or agreement, value at line customers -- the how of does and to have for It year but frame. is this goal filed. getting nature you're

Julien Dumoulin-Smith

the of here session even are then we the just And legislative end in there an if as you will, of beyond come assuming curious, the is -- the the to of sort options, session what be end spring? Excellent. here, extension

Warner Baxter

legislative understand we're passed received House but on. mean the focused not tell options, by Senate I'm is We're all on let which has sure the Warner. the by XXX, a positioned Bill -- now the well if final what just for is you very approval all necessary committees. this you -- focused with of Representatives. It what me I House quite Julien, now in vote

know this every deal I been strong this, the following has work, And now. to hard get been of a support. way, have, you've committees, has to been where time bill efforts bipartisan this and received there's compromise by it the along one collaborative it's as reviewed so positioned And of you great bill

May And XX. so now, we have until

his are stakeholders make sure that floor to so and Representatives. Michael focused with in a adequate team gets and key on Moehn vote House of very in And working the time bill the

Julien Dumoulin-Smith

Got it.

So it time. another point sounds focused like, we'll deadline the anything that after talk and for on the time about in May being, XX in then

Warner Baxter

XX. on focused May are We

Operator

from comes of Paul Patterson with the Glenrock Our next question Associates. line

Paul Patterson

you impact you what in I'm what impact We're seen might focused you as about rates, thinking the on are remind wind going the anyway, terms down. are projects talk thinking. what on just on be utilities could the of May wind just XX, rates actual guys think me We've wondering some guys the But on well. you of of rates?

Martin Lyons

Yes. Paul, this Marty. is

provide the expect in Renewable period, really much of that that rise place. would That's rates Renewable make comply overall that period a projected Renewable with XX-year with said over file be. the we'll to which not average XXX on and and X% on as Overall, certainly is is the to And law, impact the the on a we that own in the specifically on compliance Standard, plans to less not have rates of updates, Energy necessarily convenience megawatts investment what commission our than the We said, the and Energy information Energy -- can following average. being need for put the believe we ultimately on have would the that we rates, Standard. what to we the certificates the that customer that's consistent we -- that them. average, requirement do Standard, for Over expect it'll however, result impact wind time, rising with we say,

expected could be from note, wind time the time. benefits depending you certainly especially are on what over power prices there As over

haven't any the -- time. through specifically, I these said, those in we So the to impact that and keep we rates on but under And do providing commissions event, we'll be will that deliver average. able updates to that, projects like be said we X% expect

Paul Patterson

then if if me? that this guess, of how follow you legislation booking the happen, would you terms Okay. tax in this, tax earnings about to Great. were, benefit have, think guys don't the we -- were offset in reason, think how the side, legislation you if in the but for it? think how expect for about that some And about we guys on your if know I I should the we would impacting the -- tax benefit, should happen, How think to we not about

Warner Baxter

Again, be comes out Well, number legislation first and have accrual that we've to tax any up Michael, how and as be end Right don't figure what financial results, benefit that proceeding customers. for benefits it assume time to that passed, as shareholders required over we of quarter providing we financial I would would expect retained that results then by have our relates to our do established if the period commission customers. to for could initiated. finer proceeding that one, the the an by point? would of of providing think, the law, now, just the a reform is back the the clear, you much ultimately to benefit expectation

Michael Moehn

passed, refunding be to amount to going XX just customers. I we is would add, days, within legislation the clear, that to be will assuming just back

clearly. legislation in out the And so that's very spelled

Paul Patterson

Okay.

me? our you to that other correctly? that Is to as from expect earnings So impact the clarify, as being way reported, or the we that follow just far one Do understanding perspective. should legislation

Warner Baxter

understanding Paul. are you correctly, Yes, that

Paul Patterson

see Okay. happens. to wait And what just we'll XXth the till

Warner Baxter

You bet.

Operator

Paul question Ridzon the KeyBanc from with next Our Markets. Capital of comes line

Paul Ridzon

a decide would to to follow-up legislation tax If a to to require it Paul's not peers? pass, to Just -- rate would the advantage back give case question. rate

Michael Moehn

out have would to that to we that get proceeding normal and, correct. customers. rate through And the Yes. go to process ultimately, That's back figure

Paul Ridzon

January be retroactive of to that X would 'XX? And

Michael Moehn

determined. be to Yet

Paul Ridzon

could potential of and just rate completely your -- Would now -- kind to reshuffle base then be? legislation top some would place what be another the projects? just this on you've if this the And wind capital to you $X CAGR billion additive? Would added of the Or passes.

Martin Lyons

to more for Marty. into with would about legislation to the we in Paul, the It bring this said the this Missouri. And portfolio passes, over investment we is be We've compliance a the need will frequently wind State that we've Renewable this the billion extent Standard. largely $X of of potential Energy talked for that additive. period. invest Look, X-year

would more back, what invest step will not we take plan. spending we a X-year expenditure in look rate we our holistic $X repeatedly, And a said this growth plan. overall, that said be. that, company, and overall largely, We may said we to however, some that billion would as would -- We've Missouri. modification capital at make additive. So exactly But our be

Paul Ridzon

have So been rate. the more growth extending patterns

just then in what And up? XXX who And Okay. the House, the trip are could on hurdles? this

Warner Baxter

terms It's in to be said the is ready calendar. more floor as all hearings specifics. I is the hurdles, it the are of House go have I'll let to Paul, It at House There on no the that go legislative of and some leadership when on to it to to committees. comment chooses more the gone Michael And floor. committee the outset, the through had.

any that? commentary so other And beyond Michael,

Michael Moehn

just again, than, to has think, that I it experience, continued reiterate to bipartisan other No, support. strong

through said, Rules. As Utilities, been the the House committees, it's all House Warner various

week the it's with so. time. next optimistic and we So within certainly on can debated at or remain -- any debated the be And be calendar will it

Warner Baxter

we've the bipartisan Because bottom support. line, lot about a talked

I support think state recognize this stakeholders that from legislation. key to it's important across the

House the at the so it'll the to legislative and remain have session. the of day, by end [indiscernible] that on with now the opportunity And floor an have hopeful the debated this bill end we of of

Paul Ridzon

I it those it's or are X. enjoyed now? bipartisan X legislation parties past, Where the similar has but support, takes mean, In only

Michael Moehn

the Senate House. that the we've had difficulty think issues votes. in with the getting This Senate is I Bill look, Well, in past, a

I important think just that's recognize. to

to compromise a a again, and again, of bill Senate, And good a came XX long through the a out going it's did, X, bipartisan back had support. to that we various and, filibuster committees. gone the ultimately, strong So February,

never never through far So been close, been we this have this the process.

certainly again, next hopeful gets or within And it we so that debated so. remain the week

I think we've rate benefits obviously, the refund, are talked in of for of the Clearly, is creation Missouri, development in cetera. about State rate jobs, of the the it. terms there the the cap, investment riders, in for tax economic freeze, there the of Missouri the support what the income State et the

Operator

[Operator Instructions].

Our with next question from the Michael comes Goldman Sachs. of line Lapides

Michael Lapides

and One in and actually, then, maybe Missouri for total. then one Illinois question a housekeeping three one, so

the Missouri First, question.

not broader, have made Has Governor House bigger, bills of or in by but way last general. last days in actually Just XX so? XX the -- to and the new been Senate legislation just the in signed this legislation, the XX any the in days, its out

Warner Baxter

been went There on why out the... but talk Governor. went it this that a Warner. hasn't environmental bill Michael, is that about Michael, matters you So was signed that approved, don't by out has been the

Michael Moehn

its us. to specific the mean, obviously, that's of Missouri to business. bill think I conduct State a on I continues commenting Warner's

being and Governor the legislature I combustion to some week. bills a [indiscernible].specifically, there's or us, signed. I has not passed as that said what know the residuals do think can't bill Warner can But related I we last passed, coal signed to comment on

Michael Lapides

Okay. law. been now Governor's signature is awaiting or signed And that the bill officially is and has

Michael Moehn

signature. Governor's awaiting It is the

Michael Lapides

X on that plan, laid not of next are now? back the fall putting these on the to the are and Want make versus mean, we're a look And out that your plan for and/or year very what your incremental plan about change of on I Illinois side? could show starting question decks CapEx the the incremental Illinois "Hey, some need outlook," years. things that the in into but either guidance, this the -- But that slide I transmission side T in CapEx time D you've different it. What or really things you CapEx needle the this that for things the move could our kind distribution could, next Got just what curious, ask know investment. are

Martin Lyons

Michael, Yes. this Marty. is

X.X% mean, business. Illinois transmission -- rates, a you robust I compound overall, about significant rates our a are We've actually our of today. annual know, think rate. we've there's look, XX.X% And growth got the in distribution. Ameren at electric in of the growth amount gas. And I pretty growing business, is XX% kind got Illinois that, for that's as for

So already good pretty growing at clips.

continuation investment grid see additions relates various regulator ahead, of aging storage growth strong In electric aging obviously, switches, a I'd shield modernization of replacements, structures, poor transmission investment the quite be conductors, businesses. cetera. look for rebuilds, we all areas. a transformer there's safety. business, gas those thing next general, wire of line to to bit underground the reliability breakers, business, as cetera, years for over as it transformers, and those As gas say, infrastructure, of in we substation, capacity beyond, replacement a coupled system station there's steel relates lot as et The still do and so of of to replacement, transmission X replacement, well compressors, rebuilds, Same et done filled and as it replacements,

us it's a of So But over But as beyond to for that that five increase for even us put to cause point beyond -- infrastructure. of position of investment some gas of there business some terms need and opportunity further you extends know X the compliance expenditures the of to that modernization anything and obviously, modernization investment. with that in don't should investment those level years a of components time think things, we lot in that rules. are We've we've if the I have new years. really good future look the may of certainly, in to. for in next got specific planned about been in our one now there's regulations waiting terms is there's the

Michael Lapides

a just it. once X that either outages it's bit in or a planned planned it's is And all XXXX that thing? headwind $X.XX $X.XX kind Missouri the last on -- the 'XX or bit XX XXXX. in go work Got of away of years' a little beyond? will I expected The side. 'XX, it's of Will it's just into but when think just fleet, to one about drag a and item? of so item, we 'XX, then housekeeping nonnuclear incremental or an bump some of every XXXX, a little think Or that

Martin Lyons

no What on is, more light we of fact in was outage. there that the of refueling that seeing Yes. this took we're year there Callaway

It's noted So onetime in think consider expect would to in that those at I XXXX. down occurring that of really and But but look to something do more we type that that's that year. think I I I And would refueling really expenses, don't you you'd be that this should reoccur year. of year, that drop expense, a from to year. as in non-Callaway as I year into the move we amount terms varies something of next see February, won't wouldn't those expect as

next bottom is, I guess, the I of perhaps, but, line would some year. expect Michael, this that nature seeing further year, So at that we're expenses not level

Operator

with Fund Management. line comes question of Khan next from Verition Our Ashar the

Ashar Khan

those a XXXX a fully be investments we on as you to so would fair to as I -- return on year, show legislation, well by take have should, that as wind understand as we know investment in able they part able legislation be that, but that a just fully done guess, of can are shareholder, wind and certain gaps, price should we on the in by the XXXX right, be of Marty, completed? the the to the, the as return to book, one those make, expecting on them say we all investments on -- they're that that once we part I have thing? the the I get as under the as is be investments earnings, it and get to

Michael Moehn

is should we to we'll to cost have the the Moehn. things X.XX% expecting side. wind the absolutely, manage cap. on we've respect of that been I talked from you continue management underneath obviously, as those And investments. have But discipled be return a a This closely X.XX% With referenced, those assuming Michael to we caps, the billion incremental mean, that investment all about, the $X you are yes, investment,

Operator

next line Paul comes the question from with Ridzon of Our KeyBanc.

Paul Ridzon

quick A follow-up.

Illinois issues. You said that? How much timing gas tax some from that was benefited

Warner Baxter

$X.XX good honestly, a it's timing to Paul. impact. question. terms $X.XX the of in It's, Yes, about

Paul Ridzon

the And by reverse end the that year, of yes. will

Warner Baxter

Yes, exactly.

of segment remainder up gas said, to the the $X.XX over natural $X.XX of that about reverse So the were year. And I $X.XX. earnings would like

Paul Ridzon

balance fossil and shoulder the are we we to that months, should for the in XQ the are -- then And the XQ? in those year, be $X.XX going outages of think that the should those

Warner Baxter

Yes, yes.

the those we -- we think fair gave in terms O&M said when overall $X.XX When beginning talked of in talked of and scheduled we But about vegetation a nonnuclear the for management, outages, you're assumption Missouri expenses. year. the of ratable guidance our in in which and right, year as line higher routine we that's I shoulder more inspections, talked occur months. of generally outage relates about and you're the right would timing absolutely Also to would which cost. be it the

Operator

Fallon Our next of comes question from line Citadel. the with Kevin

Kevin Fallon

transmission on you the a Just businesses. for question

at at ratio transmission. transmission you to -- do Ameren the Illinois equity ATXI Ameren how equity XX%? so, up the Is And than you at thicker ratio increase could Illinois chance have that? any you do You do to a guys the there that have at if

Martin Lyons

would assume the entity, Illinois Marty. going reflect Ameren capital of that Ameren it's so Illinois Yes, is and And course, I Kevin. with of structure At business, would say the electric gas, a holistic -- This transmission. that legal really to forward.

with for distribution in the keeping equity agreements we As both ratemaking earlier, those gas noted we in a and ratio X both businesses, the targeting we're have of XX% areas. electric the under there

you the look future, business overall. Illinois at I and Kevin, Ameren the for I'd would look, in today ratio simply equity as again, ahead look of the So

Kevin Fallon

legislation timing helpful. actually a CapEx XXth, the the And refresh refresh, on by on position Missouri gets done when in assuming to a That's guys a be then outlook? you to in your Okay. are going

Warner Baxter

to both I as plans the quarter conjunction Look, in But we I think, situation by third updated we've with obviously, on again, our in again prepared has early done reasonable that the file we've it'd then, some by out our more call. June as that look update in of and terms as the as might given of ahead, the CCNs you looking later assume wind we remarks We've be year. reported ongoing for sort the year-end the the negotiations, legislation. spot, our think in been Q&A Kevin, today, they're some mean, to typical, XX, status I the call.

year So an I in think next initiatives, both those progressing little and of again, terms we'll think we on well let both will -- out either thinking early a we're again, update. but be of or things late I of those this play further

Kevin Fallon

like, billion? know the to of are the projects you just to clarify, to related have of line guys And the sight you $X what want correct, do, a you CapEx, behind what already legislative on

Michael Moehn

I that a headed sure Yes. I got make projects. in say we would grid where And refine a filing we glimpse outlined on that we're exactly mean, on that But pretty that continue we and right you XXXX the that $X back modernization. billion. filed gives good to

Operator

is Michael Sachs. a from Goldman with Lapides question next Our follow-up

Michael Lapides

you the deferred horizon reform time tax excess to And customers? the what or what horizon the back what bill level in all income refunding Illinois, time something Missouri -- the Nitty-gritty either probably is question tax Have for federal accumulated Marty. in quantified that or on is? for unprotected the

Martin Lyons

be probably number. Michael, that embedded. it on Missouri flowback up line back be we probably don't the where And with details especially or regulatory of are flowing definitive filings, I -- But think top have I head, with as in off the time that that in honest would the I'll do those you, to things yet in is actual timing still my a the the -- the of somewhat have don't customers. to relates air amount

provide over in at don't can something, to that our We either. my I Michael, it top you either the can that don't have -- just to head. that's that we have if But time. we plan think I So see we of XX-Q file,

we'll provide time. to over something you maybe that's have So

Operator

to Fischer have of comments. for I end turn session. back now question-and-answer floor the We like the Mr. to closing would the over reached

Douglas Fischer

in call. for this Thank you you. participating Thank

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

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

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

Operator

this gentlemen, and Ladies conclude does teleconference. today's

at participation, have lines your You may this and a disconnect Thank wonderful you time. day. your for

Ameren (AEE) 9 May 182018 Q1 Earnings call transcript