Earnings call transcript Q2 2023

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Operator

Greetings and welcome to Ameren Corporation's Second Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Andrew Kirk, Director of Investor Relations for Ameren Corporation. Mr. you, Thank Kirk.

begin. You may

Andrew Kirk

and good you morning. Thank

as On President and call Senior Ameren Vice Financial management with of other Michael me our Lyons, Executive Officer, Chief and Marty team. are President as Chief the our the members today Moehn, the well Executive and Officer;

as and This this redistribution call only broadcast contains of date is that data the time-sensitive of today's accurate prohibited. is of live broadcast

referenced presentation a the homepage. by on our be speakers. We have posted That amereninvestors.com will

comments presentation, plans, the for during of and two Please page on statements could referred expectations, noted those call refer anticipated. news conference to we in future to similar commonly contain statements. the projections, from as made may as are section cause As differ this performance, forward-looking forward-looking to the materially matters issued about release statements which financial various factors information actual more about SEC results that well the filings yesterday as our

Now, four. here's Marty, who page will start on

Marty Lyons

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

we which and our results, a and work significant storm power month of we our was a major would across June of customers of to like approximately the series like to XX-years. events restore discuss to Before to quarter in Ameren July I and second number power. and this Missouri. I disrupted proud worst for late as has Collectively, their electric Illinois occurred the earnings cover also would their Ameren for thank events storm experienced for grateful patience in team. our I'm customers

to outages in reliability ever four. as and no conditions man of believe and resiliency me hours customers, continued significant page as investment Importantly, challenging grid our team thousands we of necessary our employee brings These injuries. why worked which with remains for important emphasize hundreds in

and affordable team safe, business execute to our energy clean, to and natural which customers. across will our deliver infrastructure continue our reliable, investing segments, of dedicated proactively gas to electric services plan all strategic entails in Our

page to moving And five.

pillars of governance, growth. sustainability plan, integrates strong strategic strong positive Our stewardship, our sustainable environmental balancing four social the impact, value proposition, and

we at strong strategy. sustainability Way sustainability Here our we details I which doing updated and called amereninvestors.com, more available of and how read been customers, we investor Leading our many take are we things have a to shareholders. summarize sustainability presentation integrating fully to proposition. some you for And our value into Sustainable published about effectively Energy the time communities, our some corporate encourage more our practices to values today, Future, co-workers, the

earnings quarter quarter announced Turning page six. XXXX. compared of Yesterday, to of results on drivers $X.XX quarter slide. outlined second are our share, second to key this of the share per in second we XXXX of The $X.XX earnings per

first-half to in our share guidance XXXX of strong per the result that $X.XX to remain per As track on execution report earnings year, to range share. $X.XX our pleased I'm a we of the deliver within of

our objectives seven. page strategic for some February, to XXXX. in key of highlighted On Moving call business I our

progress to result of dedication. continue our make great a team's We as

this accomplishments key few quarter. a are eight, page on Outlined

for to investments make we improve capital efficiency resiliency, can nearly spending customers. clean right our as benefit period. year, of compared you year the invested we've the a ago business As XX%, These continue the of and our system of on to during will this increasing first-half significant transition our in the see page, of safety, of this reliability, the side energy segments each

customers for and over pipes. XXX Ameren amongst XXX,XXX meters, year, focus choice Missouri customers X,XXX gas substations. and continue smart underground these first new XX of have cable Over Missouri better and smart meters, Ameren our service smart our switches XX% six over months from replacing now During Illinois, smart we miles allowing installed rates upgraded of energized on year-to-date, distribution and electric switches, electric benefiting to are poles XX circuits In and the offered. eight electric understanding mechanically-coupled on reinforced several time-of-use usage new energy or of

transmission economic which delivery XXX transmission transmission transmission first-half supporting the Intelligrid of overall as well this interconnections, was for projects of business in includes to of line our rebuilds, aging completed other replacements, energy year, our the including transformer completed the a circuits, renewable resources customers, program of our the This Further, upgrades and total new the generator infrastructure, spring. resiliency portion the as of system.

technologies, system functionality a Ameren's durations full Ameren of secure potentially is network milliseconds of smart to greater outage which grid giving awareness hours. the and instead reducing enables minutes of conditions, Intelligrid safe and network, or private telecommunications frequencies,

and times our a year appreciation wait work, express costs customers. for it my result, collaboration hard will to like so team's customers. I'd for dedication, this for to value the reduce and Ameren deliver far As

the on Moving for which called constructive million annual to a increase. June, rate Missouri electric terms regulatory settlement of Ameren approved Missouri Public revenue In the Service matters. review, $XXX Commission

providing customer New representing since is make July increase Ameren and which effective at least Missouri through X, prior compounded benefits plant-in-service approximately customers. allows X% XXXX PISA. our April effective meaningful Missouri annually Ameren an XXXX, PISA, were to infrastructure adopting significant to rates X, timely of accounting, to investments, or

generation transition make to our through on portfolio. the the to energy continue also addition We of solar progress clean

Moving Illinois. to Ameren

will team stakeholders date. in diligently rebuttal We or a are answer respectively, in working and reviews. June been detail rebuttal and filed rate our discuss July, key plan, in rate ongoing moment. electric distribution natural constructive these made in the testimony and -- with encouraged by Our gas more to has MYRP, Michael multi-year progress

on by cost-effective transmission slide. vehicle construction matters, Ameren projects, approved was incentives, and passed of or will we include more timely of programs, to development. in was million which beneficial which XXXX electrification Bill through electric In the bill supportive infrastructure June, by the for and commission next would updated General plan $XX the legislative House were rates the the Assembly and cooperation transmission in and encouraging I law, In Illinois March support efficiency XXXX, touch on This May. Illinois adoption

possible keeping continuous operating energy safe, on improvement, to through as matters. reliable, and bills business through investment provide Moving our cleaner customers. We ensure performance our as management, our low customer as focused sustainably we we optimizing and for transform cost onto remain disciplined operational

is Finally, Callaway in fall. early scheduled May, brought brief was for back Callaway and the was maintenance a Energy The maintenance on which following schedule. safely online this outage, Center and next planned outage planned refueling completed

to page Turning nine.

transmission the efficiency mentioned, enacted, including just passed Assembly cooperation of law I House the XXXX General May, the end would year the enacted, customers If long-range right XXXX MISO MISO build projects if benefiting planning communities in and HB clean first to As transition, by or approved and Illinois incumbent region. utilities, transmission broader Illinois refusal Ameren, and energy our which, XXXX. the Bill support provide will

operate, assets customer the believe and begin well-positioned realized these quicker. to As right build, to benefits time. much efficiently and utility, process transmission allows maintain are we to the of construction The first refusal over sooner be resulting we local for the

suppliers Importantly, competitively the we economy. bid projects contractors local our of local and and each support who component utilized

construction in the bill projects, XXXX July in the The with sent we landowners legislation Should long-term automatically addition, communities and cost-effective one of approved transmission transmission relationships the expected signature and Tranche first-half bill become veto, has will to The who Governor closely MISO to or the Tranche XX, timely work lines. and the XX with In on projects key be of citing region was stakeholders long-range on project in Governor and approved including the until to abstain, when X supports abstain have the from bill. XXXX. August acting for law. sign, June the X

Turning to page XX.

proposal course X process Tranche are related submitted competitive We evaluation in begin take discussed planning, the have in design the through expected transmission issued. a May. is outlining the Tranche projects for into mid-XXXX. work, study the a proposal of Detailed projects this to in place XXXX. requests for XXXX The we construction year. The Orient-Denny-Fairport MISO to November project expect in is we've and road of the a two map underway, and completed competitive procurement and $XXX As of remaining first XXXX. and its for our X October to over assigned past, MISO and bids million Ameren projects of due estimated been projects bid potential for to

continue Tranche Looking ahead of the year. next X, remainder will to into the first-half will and XXXX. MISO's of X for approved of of analysis year the and portfolio be well Tranche is in the potential projects anticipates underway projects MISO

is transmission renewables to transfer of the region in needed capability online. Continued retires and more dispatchable energy generation the as facilitate come investment across

environmental independent consultant equity, and impact, costs the to the benefits affordability, and The On welfare July MISO, ICC, determine Illinois MISO of Ameren general at Interconnection safety another MISO, residents Illinois' transmission which remaining in regional continued in compared in Ameren customers conclusion, for that reliability, review of independent Illinois was resiliency, economic avoids residents. significant to resource related the request study Illinois the and more of the health, participation considered the an broadly. of Ameren matter evaluated In organization. adequacy, PJM Illinois completed

capacity May significantly XX, moving May, events energy compared Before XXXX this year. in happy set June procurement through and which on, last I'm past XXXX, Illinois prices prices the to that Power say to from lower Agency's X, resulted

Illinois' Basic of in rate. expect In Ameren decline we fact, a over XX% Generation Service

percentage decreases assuming Illinois, power on normal relief overall providing electric weather, taking double-digit this welcome could customers their For customers. in Ameren for result from bill

Moving now to page XX.

the April. necessity, Boomtown and approvals our the In Missouri construction out of were and February Plan, expected generation investing IRP, July as of Solar of measured retirement. a or or Project approach convenience Boomtown we're and support certificates older the in in laid Project this of Integrated Missouri of Finn Huck taking Huck is June As our Finn in in to in centers transition, with energy for near to October. we Solar begin in began and pleased Resource XXXX new CCNs, thoughtful Construction PSC

Subject XXXX affordability projects go customers the additional PSC our our expect. by megawatts renewable are new territory. adding In bring while expected maintaining solar between the reliability for construction these ongoing to area. generation projects jobs of and and we generation Missouri new XXX with XXX These approval, These to service for service will over support revenues XXXX. transformation, four and payments in our projects across June, megawatts generation XXXX, which the additional other CCNs solar filed to totaling and tax X,XXX of calls

issue these CCN While in quarter decisions first under no the on is order expect we the of XXXX. deadline Missouri PSC to filings, an

process in over plan to approach measured Ameren XXXX the We renewables is includes it the next believe September. end adding and the the Missouri of in Missouri of filing to we and filed with balanced IRP, look forward its PSC a finalizing by time.

reliability on in of cleaner the cold system, a we summer As generation in hot portfolio, and we particular the focused months. and transition winter continue diverse to more are the

a future evaluating MISO's As we region. consistent for prior need to view in is result, are capacity generation the with of dispatchable our XXXX, which needs also energy more

page XX, look On next to we ahead decade. the

We stakeholders by totaling our opportunities, will a more value to of making and our stronger, deliver billion significant robust smarter, of cleaner. have that pipeline grid than all investment $XX energy

course, expectations. constructive of and create customers' energy energy our energy transition to investments support policies our that needs cleaner our infrastructure a Maintaining also thousands country's economies. critical local in on our for fashion will to in delivering Of a jobs responsible be and investment future a meeting robust

growth supported our XXXX. we constructive rate Turning strategic through X% plan, growth regulatory our to February, frameworks. of a of is by primarily each of page infrastructure expectation based operating to our to earnings annual segments of X.X%, rate by XX. driven compound on base growth which growth investment five-year included earnings compound allocation strong X% from This their XXXX our updated annual In

earnings to Combined, ability to in and done. strong return resulting we attractive it execute investment all confident regulated and deliver an get have with we our compares our team segments peers. that utility plans our favorably to business and growth, in dedicated strategies expect across I'm experienced long-term total as dividend of four our an

all, call today, us and for the you, will thank over turn to Again, I Michael. joining now

Michael Moehn

everyone. morning, good and Marty, Thanks,

each reported of $X.XX share to XX share, earnings segment. second This per summarizes page Yesterday, to our impacting drivers compared of $X.XX key page presentation. now the year-ago Turning quarter at we XXXX earnings quarter. for per

of you in able business still the strong quarter, year-ago the cost temperatures quarter in were our regulatory impacted to a were can negatively to we temperatures under warmer-than-normal Ameren compared disciplined investments in We in management. by all earnings as earnings experienced segments. normal see business driven increased during growth frameworks, the constructive As infrastructure Missouri a mix of by and deliver period. our earnings our result performance diverse

on distribution. and about Year-to-date Missouri industrial touch customers residential respectively. sales I'll on, and X% sales trends kilowatt-hour Illinois electric moving for Before Ameren X.X%, decreased and Ameren to Missouri weather-normalized

Missouri expected normalized people pre-pandemic has about increased in hour sales modest nearly kilowatt the compared to increase in weather X.X%. Year-to-date decline as to yet were sales there customers more a to levels. X% commercial office, year-over-year as residential been residential The sales return

to sales, do our Year-to-date that weather cause, have customers no sales last declined electric Illinois year. normalized compared decoupling. kilowatt X.X%, we affect about hour Recall revenue Illinois full not earnings, changes in the to since matter have

the economic within $X program of have development new plans XXX front, Boeing for and been our On would build Missouri, nearly create to billion expand territory. announcements jobs. there In its several expansion or aerospace

large-scale of first EV battery plant in In its material XXX and manufacturing Louis, creating their type an will plant be the production support in of will which addition, additional ICL expand the jobs. the batteries country, Group St. plans lithium to

say I'm XXX cable, below market energy unemployment labor jobs in facilities state. to see average. with that to collectively we announced components Manner plans electric Prysmian nearly manufacturing which national create and well renewable in of would Illinois, in and continue X.X%, a an build the pleased Group strong vehicle the a And Missouri, the to rate Polymers

your our $X.XX impacting select These to expectations I guidance the this to these On remainder XXXX earnings as our and results of of to Moving consideration we've considerations on year. develop remainder key the assumptions share. for the our encourage earnings drivers to page, quarterly page XXXX reaffirmed discussed you supplemental you highlighted XX. the call for earnings Yesterday, in guidance into are the for we earnings of range per February. year. $X.XX take

for did proceedings. details box continuation did black update trackers the The Turning and on an agreement the not rate settlement now key regulatory review million to In our the page in $XXX of electric a approved specify adjustment and rate Missouri rate provide and return Missouri or was increase. fuel XX, Ameren revenue annual base. provide equity, agreement our agreement structure, certain PSC a on clause. including June, I'll capital stipulation including riders, for The

service effective New rates Xth. electric were July

Island Missouri Rush associated Ameren retirement on Island Center. filed for week the our with the other Center, in preparation matters, notice PSC planned already of Energy a regulatory the has Missouri costs for with In XX-day securitization last Rush Energy the

net with of Center retirement, finance value Energy seek the the the Rush the will We to costs through Island associated remaining securitization. including our book

As $XXX June was the net XX, of XXXX, value book approximately million.

the of filed, We expect quarter to as file our petition fourth take seeking to commission the are early year. Once months to seven the proceedings complete. approval securitization to up this of regulatory as expected

first the XX, with Moving ICC. in rate distribution filed plan, multi-year Illinois to Ameren its electric or MYRP, January, Page

to energy as MYRP deploying energy the Climate a Our our and accept elements: request The electric designed system Act grid Providing around four reliable supports next a renewables way our achieves planned is revenue modernization safe customers, the for includes Equitable MYRP details objectives fulfilling investments over plan preparing three annual Jobs time. more vehicles and and transition clean that metrics, that our capital the our increase by our to included distribution performance and electric key in in and years.

X.X%, July XX, staff a includes XX% a ratio. On on reflecting adopted, includes basis updated through also staff in XXXX XXX recommending average annually. the XX-year equity on revenue XXXX. of plus ICC would If XXXX increase equity testimony of be return the $XXX equity rate, a cumulative It a suggested for treasury This return million rebuttal points. filed the

and equity rates increase January revenues. accumulative a cumulative Ameren million the equity up July The and the updated by of recommended is staff's variance of primarily is on new Ameren on in $XXX million return for of makes ICC return of equity Illinois effective and variance. includes XX, an million equity with which common request XXXX by This driven increase XX%. ratio Illinois’ required An the On in by $XX the December a XXXX. XX.X% $XXX increase request cumulative the its decision ratio,

following a Turning our variance the annual $XXX in have revenue compared base amount recommended actual our to in reconcile late equity we cost. to increase, staff collected we June, ICC distribution The December In the electric will base as updated ratio from is million rate million request increase. of million customers a by full proposed driven requirement decision $XX is An reconciliation filed compared XXXX page primarily rate ICC $XXX the common difference to XX. In XXXX April, the to to XX%. recommended and XXXX. be by the XX%, staff's ICC required rate

an filed million July, annual a XX% future increase rate requesting on rates and testimony with Illinois also ICC reflecting in equity $XXX test gas a a based the rebuttal natural equity we base. Staff XXXX ratio. billion third equity year, increase we and distribution $X.X In for ratio, has a return using this increase a a year. ROE, $XXX on a Earlier recommended XX.X% Ameren XX% X.X% filed million a

recommended million equity a and Other XXXX X.X% November of with by to to ratio. equity late An a this in year. interveners have of an million, a reflecting effective ICC early decision increase rates December is return be on XX% $XX $XXX expected required

On financing XX, we provide page update. a

feel bonds to repay offering were very mortgage financial repay Illinois Ameren and position. June $XXX million, X.XXX% bonds short-term mortgage first XXXX. XX, On our that a good $XXX or first to a May portion of of million issued used about Proceeds due continue a of We in XX. to matured X.XX% this debt

$XXX end equity were approximately of program. shares million ratings of for a sold million forward by $X.X our balance fund to These year. we approximately the shares previously our ATM while infrastructure consisting robust under this we maintain credit equity, of to us our in strong issue Further, sheet order expect and plan, common

have we to needs. to forward Additionally, sales support our into XXXX equity begun enter agreements

for As the needs forward million sold under ATM under our of program. Together expected million to XXXX June is program our XXXX support approximately in has $XX the $XXX XXX(k) equity outlined DRPlus equity beyond. our been of programs, XX, equity issuance and of the and with

page a continue start to executing And turning strong our and to to XX. We're off plan. well-positioned

deliver expect our term, over growth Further, in story. with this attractive of driven and return strong favorably Ameren offer growth total earnings an disciplined management. to shares cost compare base and by we investors believe and will rate growth dividend shareholder long XXXX to growth peers. robust We the the continue

This concludes prepared We questions. remarks. your our now invite

Operator

Thank you. At session. your question-and-answer [Operator question Julien we'll a time, comes from this with Bank Our America. conducting question. be Instructions] Please proceed Dumoulin-Smith first of with

Julien Dumoulin-Smith

for Hey, all time. Maybe up for just Rush team. the on good equation. thing morning, the the side Appreciate so this it. of the much Thanks Thanks comments. kicking Island

Just the base that $XXX will. the the about takes think thinking value, the of that, Can the comment you about bit Just seems little it maybe size offset securitization on net here, you like transmission you with additional articulated? and opportunities timing if million. you when otherwise will, you if in the and to and book puts the a rate

Michael Moehn

Hey, it mean, items should into be that lines. around $XXX then from again, couple of morning, It of you some be we from not a we do into depreciation, roughly this here million. that, again, etc., question. good with really back million would is inventory, And as I overall value and I can will probably to get that well. terms think go $XXX lot Yes. incorporate million, But of occur. flexibility of Yes, around It's other and etc. Julien. obviously additional as needs of what book the I that infrastructure. in investments. things There's past will We $XXX year in buyback, have in now. we've those think debt, that mean, Michael. appreciate amount, the This a talked But really about to we an terms provide in restricted. I use just like

our to I lots there's plan, capital mean given do But there.

plenty in very earnings over we're what being I determine that we there. sort get to replace of sure hit to that about think that advance of us of give and well retirement a Hopefully, timing from time to -- to any actual this perspective, continue date the avoid that's that make thoughtful helps. itself, base rate trying time

Julien Dumoulin-Smith

Can Rush offsets then bit No, alluded just that, what Transmission about bit one a probably you being different here, element XXXX, Island, of you year absolutely. think right, when securitization, the a talked what if Obviously, most the things to elaborate you ago. okay, there. little Thanks, does? And again. just out. I single to further a a number push notable the got about on HB you maybe few moment right, little

Just opportunity on just to again, X, separately, pieces then here I you Trance trying mean, that I And for especially from there -- think as well, and/or see the emphasis right, and puts what Tranche on timing the the opportunities. mean about, competitive like, X?

Marty Lyons

again, Julien. for is Hey, This questions. your Marty. thanks, Hey,

Just first at out year-by-year on when filing. then the we expenditures thoughtful tack looked questions, we a but Island this of about to and and timing planned of timing specific to said this potential we your what five were Rush basis, on closure and answer years and amount securitization for the our Michael some capital

that to, in growth out if don't so, as within the some base capital of have had Michael comes our our any and our rate earnings trajectory rate ensure will, base, Rush thoughtful expenditures manner that, a And said, of Island already you of as that in we growth. timed kink, we

first baked our some and guess, plan, So, foremost. that's already of Julien, I into

signature. legislation some as you did really efficiency potential it's the transmission Governor's now And May desk XXXX that Assembly on remarks, and Illinois, referenced. this law, Now the in and you specifically his ask coming the There, year. the cooperation transmission we passed in was through which investment, that of legislation our about explained for of prepared about, General the HB

come August that, to the mean XX. if and were the projects has that's any that were So, XX, that one us, means late transmission 'XX, X first-half X -- of sign and XX-days, anytime Governor in is come June, Tranche Governor XXXX the to the which would the as to owner. in us approved in June our that it but also to in And Tranche got on would Illinois decision then you deadline would he the expectation, incumbent for project

some that Now, the about expressed concerns legislation. Governor has

what share of take. the ourselves, takes continue I'll including no unsure as the benefits his becomes to obviously the and it's that he of mentioned the as So, law well. law, legislation hopefully will tell becomes in supporters we bill, prepared And if he bill remarks, our actions you he concerns. If signs obviously, the law. address action, that bill

So, of we'll really to and refusal right takes. see interests continue ultimately But he what that, the we residents of believe in action State customers is best of first of Illinois. that the the our

an fruition MISO than on X. mentioned really portfolio be to in part just point as expected. terms projects. might Again, had previously approved as projects of more what gone that things, in in that these I will say we X. the the believe that's doing of evaluating doing analysis, is expect work through that that's one to IRA you there to larger come they've Tranche would out they're renewables because, which the come And than legislation they we D.C., been is of what you Then means MISO obviously, that know, this overall that Tranche overall of what is continue

those projects Illinois what exactly Missouri. be year. But fall our to that that exactly planning or something first or they'll large in portfolio half approve through to continue of in may Future to a that. sort And transmission service next we so, MISO Future continues how expect X. projects of It's that's they'll X MISO into that premature again, say is believe work between will towards And territories the and

Julien Dumoulin-Smith

response, it. Got you thoughtful it. Speakers] Take appreciate guys. for Really [Multiple the Excellent, care thank

Marty Lyons

Julien. Thanks,

Michael Moehn

Julien. Thanks,

Operator

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

Paul Patterson

morning, good guys. Hey,

Marty Lyons

morning, Paul. Good

Paul Patterson

regarding it's country just Texas, to that Circuit wondering Fifth this the that have allowed any but what and apologize, in on you Julien's involved Court stand? the ROFR are was decision I do wider in questions I in could to you about ROFR, implications is think guys -- I follow the up Supreme the So, that if know

Marty Lyons

were apologize. okay. be -- to states -- Julien or passed be in said to to seem yes, continue the law, would well pursue sign applicable been have I -- it this Tranche to that -- again. some and think too, that Governor before, and it's going so, a particular we've actions look, of Paul, X that MISO various taken projects X But applicable it's to as way We sorry, it's into approved look, or, it. apologize, projects, are both to the Paul, as I legislation XXXX. in was we're as the if that Tranche

So, guess, today, look, here I we but sit as would that time we will think I this tell, think stand.

Paul Patterson

it You would stand. think

So, got I you.

of in the the understand -- Fifth words, would what that signed. -- individual passed Illinois in wrong, Circuit, differences were a the So, which situation, the if if law tell it's because that of if Texas I right? the other is because Texas because of assuming me you between you don't I'm think apply Is correctly, walls and Illinois differences that to

Marty Lyons

that. do I believe

Paul Patterson

Thanks Okay. so That's great. much.

Marty Lyons

Paul. Thanks,

Operator

Morgan. proceed with Please comes question. J.P. Tonet, Our from next Jeremy your question

Jeremy Tonet

morning. good Hi,

Marty Lyons

Hey, morning, Jeremy. good

Michael Moehn

Jeremy. Hey,

Jeremy Tonet

Hey.

And to you bit that touched a the into and your been wanted on little with just recently. on case. if how have conversations Illinois more Just dial just Illinois I rate trending color stakeholders updates possible we wondering know commentary. of regulators the any could, electric to maybe more and if tone provide But in it's

Marty Lyons

Yes.

as perhaps is This on Michael to here want tack start I Marty. and I'll think that would well. maybe

you with work we this we remarks, heard stakeholders think our I again, prepared through process. as that really what is working constructively in feel we're like

Of first filing. is rate course, and multi-year this the grid multi-year

you're to that expected, to ultimately, still [CEJA] of state. some goals outcome, I But going as had that the the get for the so, policy through believe constructive a be going to that mechanics. we're to And have work accomplishes (ph) something

been of you'll that the direct this was through rounds able and we've our ask. we able them to And down of of recommendation testimony, to support about notice -- there increase this XX% we've provide overall were suggested additional staff, been request. work staff's about testimony started is our now ICC XX% the that And when constructively with to path revenue and with the

So, there. progress we've made positive

for still we our between million that the there's about difference that by down slides, in the of $XXX is recommended that that a our some In broke four-year over difference And or, requested staff. detailed recommended period. components And cumulative we -- increase you.

we're And to policy get I of And think work goals outcome. to like going a importantly, look, stakeholders. to CEJA. I be constructively to constructive So, the continue we'll that with said, able accomplishes

if have or any know Michael, don't you you I want to something? more So, add questions, specific

Michael Moehn

Yes.

a Just Marty, work -- overview. and think to really collaboratively, comments, through has continue trying to and a And do couple very issues. the staff these others, us good I I team between collectively, look, work of

I and is the think customers, of about, about answer, on that XX% sure about want tied talked we're all structure. making cap think in for to $XXX well. really obviously, of of that million, And the talked delivering up policy that really that wanting CEJA as that I all Marty today difference is best we objectives achieve ROE Marty about, as

law plus of was old formula mean, aside, XXX that mark fundamental if today. And really basically commission thing the I so, something of the current a govern ROE there -- the ROE you by look, XX-year took we They're state on XXX think authority XX. the under still points that it's putting their the that But the that is on reviews. treasury approaching was cost under basis rate it's these too, mean, to under points, approved difference I basis even the laws at remember I versus today important of think EMIA, which this determined recommending sort a equity says,

And of capital, kind -- only staff did is point I but cost under XX.XX out, been or and think point like would I I back too, have CAPN at of I the make this other about then would traditional think to formula. DCF, under it they revert a also think the

Jeremy. think a because anyway, the those I So where terms difference of gave does narrow is, you of it in I lot details the issues of kind

Jeremy Tonet

anything is more, left Got to And if helpful. that can it. a little if said I can, be That's very here. back there a maybe bit peel follow-up

strategy overfunded with the specifically $XXX notably ROE, Just million lower-than-expected to discrepancy, regards medical $XXX capital million on your balance. the OPEB rebuttal

Just wondering Ameren's given overall to rebuttal? could in any changes you speak if receptivity

Michael Moehn

I Yes, I receptivity that shown this in again. I fact Michael that that Yes, be Jeremy, again just we've the to think Hey has mean, gap. closed think is clear,

So gap. you is the referred gap to today. you -- that $XXX million continue I'd about $XXX say million

of So some ahead I the on -- done those. go XX% accept mentioned a been part that's ask, both Marty and look, ultimately it. and some that been to to work was additional of That good agree mean, that, here's support going large really XX% from really sides there's

months. customers, ultimately next are that gains we'll make actually off goes through see to it be that items process do should of rates throwing et going reducing overfunded Customers for cetera. couple to the continue where those post-retirement noted you it still an continue plan. It's that other are are The argue think that to out included. we for, from the over and It's We're issue the there, we'll this. benefiting arguments,

Jeremy Tonet

one, very I That's quick One could. last it. Got helpful. just if

With policymakers? in in the pressure the of decrease energy of with front prices, is kind conversations and Or faded seen, public as we've from mind it has bid discussions? the still

Michael Moehn

No, given I I much mean, think today gas both commodity is better the mean, overall prices look, what's natural side. on the backdrop with happened I

PGAs, some actually benefits And on of start so through you've et the those cetera. already seen rolling

to possible And talked making in terms thing good auctions these some think the we're certainly, that. then about a lowest are see, of right, I just to capacity customers. That's of trying bill we've auctions sure customers. energy the for certainly providing that corresponding always and to get relief

it's and it's the a future. today tailwind about we So think good conversation as of a I'd less say

Jeremy Tonet

Thanks. helpful. makes there. That it leave it. sense. That’s I’ll Got

Michael Moehn

Okay. Thanks, Jeremy.

Operator

question. comes question KeyBanc Capital Sophie from with with Please proceed your Markets. next Karp Our

Sophie Karp

Hi, staff legal is good -- and curious the morning that thank just to used of and think [Multiple color already, in gold if my you you argument in this to for taken the formula a provided too why there's formula old why the a question. you Illinois legitimate but lot I'm The new here. should more? as framework, situation little taking Speakers] be

Marty Lyons

Yes.

Marty. Sophie, this is

language required in formulaic. like CEJA One the IEIMA of analysis, determined things means which methods capital of we cash explicit the discounted very of the pricing traditional use flow practice the and use law. believe that equity commission was consistent had And the with that the some called legislation, was cost of asset for be model, legislation that prior

So was the use its methodology. of traditional to CEJA intent certainly we've commission argued that the for

of used would recommending X.XX. rate I in that they of And a about pending, note our of as DCF there part that's ROE there that of instead case staff that and the and recommendation. CAPM an kind testimony their plan, as the a would staff get XX.XX course, multiyear And analysis of the traditional was gas rate

end So our at CEJA use the that methodology. of that's called the believe is for that of hanging on kind we're what day, we the head of that

Sophie Karp

for And ones then or ask just and maybe how it, you're to about equipment in it. as if to your them, that influence can respect your things with solar to -- on going yourself I what building are you. thinking building strategy adders curious content domestic these? Got your participate procurement a potentially question. Does Missouri procure you the getting solar particularly that that. for I'm Thank like got projects, decision

Marty Lyons

Yes.

Sophie, it certainly does.

look construction we projects where as when agreements we in considerations point taking procure being developed ourselves by are are plan of finalize and of certainly, to terms build slides are they're then self-build. developers, saw that do and built our to what in with. projects a built that you certain And built are them being at into a then the some we transfer we're these projects our and account and host have So build-out, that

us strategies advantage incremental of site do opportunities, can take of provides resources credits, we can if procurement value that. us that do to we that maximize advantage that. to of tax the take we'll so -- that allow with a If And going credit we're

our cost extent And customers, the those possible is the build maximize requirements of look lowest again a we'll for customers. our with of diversity, that tax at value our to present to really good for deliver So portfolio customers. the provides goal this our for reliability end low projects the to revenue of a day, credits to

Sophie Karp

you you them be would monetize self-consume And the looking Thank those Great. to Or to you. do credits? party? tax to third expect

Michael Moehn

both, involved these it's we move We've both these forward. today. credit think of mean, very a through in some of I of sitting issues, absolutely we'll that not issues cetera. combination on thoughtful et build be could into transferability agency combination lot again be as as certainly rating I we're Sophie. clarification on a we of about. a mean, I a been But and But these, it think get very Ultimately, working I

Sophie Karp

Thank me. you so all That’s much. from

Michael Moehn

You bet. Thanks.

Operator

[Operator Instructions] from Our Dumoulin-Smith question. of proceed with comes your next Bank with Julien question America. Please

Julien Dumoulin-Smith

are seeing to But to here. was like guys going I but that Illinois -- could going about into tell I to reform Look, Illinois real wanted perhaps on being couple you hearing But like me, in that, it at look on there what it what thoughts be that. you front some here? seems to akin squeeze there. you or was back or Hey, end Colorado you conversations 'XX something might a I to wanted guys. Minnesota any gas any or guys know preliminary, quickly. have was discussed on worried come earlier. very I that's Do

Marty Lyons

there's I or now in. percolating involved of Yes, anything legislation next that say year, we're of for right Julien, in terms aware can't that

that is pending getting also resolution electric a our constructive And Illinois focus I this on think now, Illinois right multiyear rate obviously side. case. the our gas plan on of

we that's discussion I end positioned some in year. right forward rate gas but right in the of for think know this Illinois of around now, so there our we the cases the course, expiring at And as past, business. that's we're focus well QIP, utilize now. our was And

Julien. you on that nothing with So to share really front right now,

Julien Dumoulin-Smith

you've side. And going got on enough. Fair the CCNs new these right. obviously, All Missouri

learned Boomtown, lessons cetera? any Huck, Just et from

Marty Lyons

there think any We receive and learned. to move were are received lessons certainly Boomtown resolution authorization with with forward the pleased and the those. and to don't pleased Huck specific commission's orders I the of

wouldn't to plan along all that learned. And of the out IRP path say we that out are the September. investments that any our another We I of we have in us laid consistent there's for IRP got lesson the with towards XXXX our lay the we that and proposed this And that path as are well. those benefit file four excellent we've think part were move of specific customers projects So projects think IRP. certainly, as we'll the projects

Julien Dumoulin-Smith

Thank Awesome. quick. you. Alright, guys. Super

Marty Lyons

Julien. you, Thank

Operator

floor like back no are questions for I there that would appears over Marty further this to at It time. closing now turn Lyons the to remarks.

Marty Lyons

absolutely for of thank and strong strong focused half remainder us the year. Yes. had of this Terrific. execution first today. We remain joining we all you on Well, a XXXX, for

forward and have So great day. coming we months, seeing to thanks look in conferences many you at again, of the

Operator

concludes This conference. today's

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

Ameren (AEE) 3 Aug 232023 Q2 Earnings call transcript