AEE - Earnings call transcript Q1 2024

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Operator

Greetings, and welcome to Ameren Corporation's First Quarter 2024 Earnings Call. [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 and Corporate Modeling for Ameren Corporation. Mr. you, Thank begin. may Kirk you

Andrew Kirk

Thank you, good morning. and

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

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

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

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

Marty, who Now X. will Page here's start on

Martin Lyons

Thank results. you, discuss XXXX everyone, quarter for you first our as thank earnings us and today joining we Andrew. Good morning,

Our business team while to foundation allowing the successfully continues for strategic the deliver segments, and customers, future. our shareholders us laying all of a on plan environment, our across to strong our for execute

in marked warm natural mild however, announced of and well. drivers January quarter. during outlined operating operating On performance was to share key We our had balance, in per our and quarter $X temperatures quarter electric Turning was the quarter per X. teams of gas XXXX XXXX. our this periods cold the quarter, March. to, first February unseasonably strong weather performed we extreme The on now in of by during earnings systems share Overall, results first the Yesterday, weather and and Page earnings compared slide. of $X.XX our of are first

usage. and encouraging driven mild growth of Despite signs sales customer retail temperatures, grew our by the

Rush While by to experienced litigation. was proposed higher driven largely Center relief we expenses, Rush weather our the Despite to related New Review maintenance is headwinds the guidance $X.XX Energy $X.XX for charge, earnings we that to charge range steps track within mitigation per a deliver remain and our Island operations year-to-date per Island and and additional on XXXX share the of taking Source contain share. team to spend,

I'll Island Rush balance provide Energy bit and proceedings, on cover later. an our earnings in Michael of year the first the and Center detail will results a quarter update of more

XXXX I top processes. X. some our Page highlighted strategically, optimize and our to call priorities On operating of invest February, enhance business in Moving our for as our jurisdictions we

commitment to already see begun can unwavering team's Our Page objectives you produce results, X. on has to these as

to of service our Our and reliability, to resiliency, safety the continue efficiency our investments customers. improve

we this the X year, of In benefit customers. first capital significant have invested for our the months of

quarter, replacing switchgear XX Illinois, miles damage, a the installing cable XXX underground Missouri miles to at smart XX cable X installed storm smart customers aged hardened energized over of new of standard XX,XXX replacing Ameren our relocations, inspections overhead and substation due included XX substations. During X key investments and and replacement. poles and cable, miles upgraded lines In quarter of first underground meters, switches, for

storms. of result seeing Further, half and delivering we benefit of to in durations the transmission new are upgraded to support our terms reliable outages the reduced transmission in for shorter year. and critical investments first customers of upgraded and safe new energy outage of track XXXX a benefit substations the in our the and spring is commitment as or lines business our XX over of transmission complete on These or miles XX

rerouting and power due outages to customer For our avoided of over rapid by detection, were switches storm, system outages in these April automated were X.X minutes due recent restoration customer over example, Missouri million of X,XXX investments. the to during across prevented

XX,XXX constructive on or approval Resource of convenience representing first along approximately Ameren or and to total approval capable Moving The regulatory pathway our to Ameren investment, the March, homes. PSC projects of Missouri CCNs, quarter megawatts these projects Missouri is a certificates X Integrated solar for necessity, of our another of largest-ever XXX and Plan, In of Missouri step executing received IRP. legislative powering outcomes.

and would investments Assembly current in resources General the support is energy the by dispatchable and On front, X state's past the PISA, and to has legislation years. grid the accounting, in legislative reliability. quality PISA much supported investment that bills considering reliability addressing over the extend Missouri power plant-in-service enhance reliability or needed

these bills, the Senate short general have support, and XXX strong is XXXX, bill XX. ends bills and time current session While XXXX bipartisan House Friday, assembly in May

be priorities, will will many towards progress has projects, to legislature key continue to passage. beneficial in made moment. detail we and regional long-range the which in the on Transmission, While transmission continues work more At Ameren I cover with stakeholders a

electric Turning Illinois to delivery.

reliably. rate proceeding. plan Subsequently, level approval the electric rehearing our their revised multiyear updated to grid requirements stated rate incorporating ongoing revenue the commission diligently investment commission's and or Illinois an the plans grid prospective to in address and we March, grid In plan environment. of of to findings revised January, multiyear part the work granted overall for a Commerce in and in our the Then regulatory ICC plan, from Commission, We improved filed base as order. investments the we continue filed the February, of December address to partial of operate an an investment needed rehearing

with rate operating for proceedings The update rates XXXX. and through plan are and XXXX in grid multiyear parallel revised rehearing and

ICC decision rate a provide the would from June, July. interim which XXXX We the rehearing expect on adjustment by in a

rate decision beginning the which on of January the ICC revise by an would multiyear revised year, and expect end the We grid plans rates XXXX.

regulatory energy frameworks outcomes and support for We advocate state's the constructive continue work goals. all with to impacted to that stakeholders transition

for and essential the we is reliable and growth and communities invest in Our our energy region. support affordable serve will our and continued customers ability to deliver

cost maintaining to I'd safely working and XXXX Ameren to to We disciplined collaboratively efficiently, appreciation to our are expenses serve committed and our team on like levels. operations remain sincere in management Moving XXXX who members, express flat to to my operational to hold matters. customers. maintenance

moving Now case Missouri. the for securitization to Page details Rush on Island X at Ameren

make recovery our Our Center Missouri March, Island to continues of of request the ratemaking will investments PSC of of traditional In Hearings save issuance related these PSC the and the Refinancing the to as financing Rush staff customers were progress. costs by millions $XXX securitized recommended and expect balance our request million. $XXX decision Missouri of through the the June with securitize Energy to and in dollars. compared remaining securitization other million XX. PSC's April, bonds, completed versus through we

Source Rush Now the Island. proceeding turning to for update an Page New Review on X for

installation at system Labadie. district but U.S. respect to scrubbers Center, Upon appeal, Rush District upheld excess reported Air Labadie of injection Island. at scrubbers previously for the court's at A issued desulfurization system a Energy the Energy Island violating order XXXX, in for Rush the Missouri of Court sorbent the an the to circuit installation Island, overturn install of New flue on as the or As Clean Act the requiring Rush mitigation Source with Eastern provisions decision Center and our dry a of our ruling emissions gas respect Review with

The Ameren's proposal XX, Center The made than retirement accelerate allow the of In year, we October completion District Energy various to installing the both District planned the our proposals additional March more approved beyond of retirement mitigation this decision to the court to Justice Department Rush relief the Court our transmission XXXX and of additional ordered for center. U.S. of relief for the is economic to Court retirement scrubbers. reliability later for mitigation of Subsequently, was Island than which of energy a retirement date parties the established consider. file customers no projects. outlining seeking

filed towards its consists retirement XXXX previously a essential Missouri proposals. which programs proposal to electrification allowances. mitigation sulfur including and million, of first bus date, filter cost planned approximately Island, eliminates mitigation a Rush Wednesday, retirement all $XX their Ameren's On the underserved Ameren stations, DOJ customers through emissions air surrender program, buses these to X in earnings. respective program dioxide quarter charge geared estimated of resulted residential elements: charging are Collectively, which of an school and and

$XXX The million. their proposal stations DOJ Department approximately mitigation charging of cost includes of Justice a greater buses, significantly The and filters. be to program aggregate number advanced estimates

could an appeals. evidentiary final a issue during the XXXX sometime be this the half of to District Court we be summer, second expect scheduled subject hearing expect will and will ruling further that We

Protection Environmental series provide an to Before new moving by on, update last I'd rules of issued the the on week. like Agency

a to affordability. you to in early Missouri capture full-scale technologies, on with These energy reliability cycle manner, which new responsible capacity factors maintain to rely but current called and the in gas deployment. to reliability. generators for carbon The and than expect XXXXs the economy-wide existing facility units include balancing ready Ameren a system apply clean greater As storage would rules our know, investing coal-fired new heavily well, not gas-fired committed for not new XX% are in remain units, as rules only IRP which in transition combined

has in to rules directly and XXXX. will And co-firing between noted as XXXX, permitting a gas Center, coal would In our construction to requirements the comments These XXXX co-firing from Energy retiring and we XXXX. Labadie gas natural which the standpoint. retire impact proposed our with rules, presents for addition, in units XXXX scheduled and require by natural challenges units most

centers, or of new challenging making industry industry through still These time tight, significant are particularly growth, build of electrification transportation. maintain generation manufacturing when assessing Plan, we While dispatchable it and Resource is our the the existing and demand challenges these to potential new from rules costly seen the has and the supply dispatchable data are more Integrated a the come load on rules generation. impact at and

environmental would to stakeholders reliable if as in is meet our by to continue what's system. review regulations, a the compliance maintain various obligations and require investments modified, significant rules, will many XX-year likely. These regulations final beyond litigation We and pipeline current closely with not

ahead generation developments. Moving to Page our XX. future We look to renewable

a the County, Solar County Missouri. organizations renewable for is to total mid-May reflected and businesses Cass their if receive March Missouri's Solutions The online customers subscription. to Ameren eligible March, Program in be of their Missouri intent XXX Ameren for upon early projects project Cass Missouri X As County megawatts. subscription-based to Illinois fourth PSC XXX% Green, subscribe project facility, take Missouri expected auction with the The and all up the set Renewable CCNs Program. Solutions by I is in it under auction solar approved approval energies in with Renewable subscribed following from replacing PSC place Vandalia CCN The manage order program to businesses XXX-megawatt solar Missouri in Cass for a approved allows could mentioned its which Split in PSC also strong to notices carbon that April footprint the fully sources. interested and expected terms is located of of Rail, Bowling nonbinding will full the interest. Initial totaling subscription

site is Investing a of energy XXX-megawatt the of retired of dispatchable in could our by energy to an Center, in of CCN Meramec simple-cycle new file energy affordably Later including grid we long-term be turned a plans customers. for minutes Castle demand. part of expect to Bluff reliability IRP and which to for as on-demand Energy request ensure Energy Center The month, during of simple Ameren located energy needs meet resources, plant, for Missouri's cycle be needed a gas to matter on energy this peak the our periods XXXX, solar calls reliability Center. Energy on the this

Mid-Continent XX. Independent transmission Operator, to continues MISO, Moving to its System approval advance planning processes. The long-range and project or Page

deliver territory, assigned our addressing MISO projects to X XX% final pleased track project to being of emphasizes X, or Tranche For projects Ameren which of projects develop communities. in our in service our high-value our selected Tranche portfolio total of be service able the in the we competitive Ultimately, region and record again and were April cost-effective, awarded to was third approximately territory. XXX% Midwest to the

XXXX dates substantially X begin Tranche through with expect We XXXX. completion to in construction

ultimately the expects to portfolio our on assist MISO territories. the March, MISO to announced X within Looking third comment on stakeholders, approving transmission X significant and portfolio forward. of other ahead key to in $XX quarter Ameren MISO and Tranche MISO billion service in we, Tranche of been to have the XXXX. X, project which most a evaluate Missouri to included Since proposed estimated projects then, working in path Tranche vote billion, long-range to Ameren and with cost $XX are Illinois investments

Slide XX. to Moving

Looking a stakeholders ahead more grid by will investment over robust of our stronger, significant the deliver next than decade, $XX of and opportunities billion of making smarter all we value cleaner. energy our pipeline that have to

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

strong frameworks. The of growth by to of annual of growth included business X% to all growth XX. on X an resulting updated infrastructure segments deliver their to our annual our supported our and experienced long-term Page strategies our plan, strategic and dedicated investment we compound from team of through earnings X% rate in growth, XXXX. execute In investment compound and by February, in done. we it X.X%, expect Combined, return. growth segments primarily base X-year have is expectation to to Turning regulatory each driven of an plans confident earnings which rate dividend based our XXXX strong earnings attractive allocation our business I'm ability as get across to we total

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

Michael Moehn

and Thanks, Marty, morning, good everyone.

continue $X.XX our performance on making reported to our per earnings strategy, $X.XX quarter. We for of execute by segment presentation. highlighted share we to the we first to solid $X now of the including compared share drove customers. for during per delivered our Page The Turning that factors XX are ago overall infrastructure key decrease share, XXXX the this benefit page. quarter per investments year quarter of earnings the Yesterday, as

included Natural new in and Ameren service first The Ameren Missouri. Illinois quarter Gas

sales In X% were at electric which across higher to addition, customer retail weather-normalized strong Missouri weather milder customer contributed classes, by offset growth and all usage Ameren partially impact.

quarter past Missouri, O&M was mitigation a first by for additional In XX one an $X.XX third also Rush in fact, the in were charge in Energy by Ameren Earnings related the largely the reduced Center. Island proposed driven increase relief to years.

Moving XX. Page to

As expect range, the $X.XX of to of $X.XX be we and our year, remain XXXX in guidance the think share. we continue we to range to about per remainder confident earnings in the and

charge results we $X.XX expectations. our experienced versus we to But about to expectations, think weather $X.XX Rush and As weather-normalized first compared quarter of for lost the our sales normal related $X.XX for favorable beyond Island. the

includes As we half reductions second the and instituted in expected deferring reducing to initiatives year-over-year discretionary spend. throughout in year to year. our look meaningful the ahead, cost we are reflecting and build which savings O&M workforce, the see restrictions, expect several This hiring of consultant eliminating or XXXX, contractor

through technology better process investment leading have actively reductions for cost increased opportunities create and for further we continue and experiences before, customers. redesign productivity our costs discussed to we've As been to years for and managing digital

expect financing balance from year to drivers these for of earnings of you we for year. in addition, your to you timing project the into encourage expectation develop as quarterly expenditures. due the remainder the and Ameren supplemental consideration the In take I Transmission to earnings higher of earnings results benefit over

auction XXXX in resource the adequacy year, for concluded assesses planning seasonal which resource planning Finally, last week, zone. MISO late its XXXX to each

model CONE seasons. cost fall of prices changes showed Missouri's higher for capacity new entry through and generation nonpeak the load territory the shortfall requirements, capacity Zone result reduced and a available went of and import or spring X, capability, As the to of accreted load Ameren a

in customers. Unlike Missouri because zones results couple reinforce prices couple relatively year all of for generation impact with things. within auction what customer Illinois bill serve any remained do from nor the providing auction, MISO customers, years of Ameren ago, this MISO do flat. to our Ameren we throughout see a a service material Clearing available see our not resources we electric experienced to reliable other resulting issues The do at expect

us strong to integration to the continue the a service. for stakeholders stand to expansion of is the need significant loads called carbon-free And needed electric our renewable some execute an generation there new plans generation will second, region to locally IRP. large for and ensure work ready grid require transmission in needs. to projects reliable with to the capacity with We address First,

issues XX gas megawatts on moving increase electric have I'd selected that few economic are existing manufacturing, add we center, are mid-April, natural XXX territories. to development. demand have expansions projects data an and expected million successfully mining The next the Before processing food service provide XX projects across like locations territories, projects an will our supported update estimated these our These in by jobs of by X.X in to almost on, firms service the aerospace, and within years. industries. majority new which Through customer

Ameren and economic are and data considering including than location and XXX low others. manufacturers territories that development on the working aerospace local service more on Ameren and among industries, with Missouri projects agricultural our centers regional partners in state, actively Illinois large are automotive, in

thriving territory. development continue to on in our We service will to build work opportunities communities

Moving Illinois XX Ameren matters. to regulatory Page on

Illinois to multiyear updates plan revised XXXX the cover as reconciliation, grid rate including as distribution several well regulatory XXXX electric with filings. you, rate the annual have plan We XXXX and Ameren a rehearing through

million over file to time XXXX expired cash at or under cost would that in Illinois reflect the full reconciliation Under costs. revenue end and of the filed over we distribution of Illinois million The amount electric April, annual in prior requirements required the reconciliation replacing adjust being with collected Ameren is period during which from be up service flows XXXX period annual actual XXXX, In adjustment is $XXX collected requests for to ratemaking, costs. $XXX annual adjustment changes customers updates any to rate systematically our for reconciliation. the XXXX, Starting of for formula prior such XXXX. recovery true rate of to

total in or in effective expected in ahead decision customer of early a $XX and December matter million new net increase bill. this ICC a the year in average impact months The approximately with of For the review rates X.X% year. customer an next will residential

a multiyear reliability January, 'XX cumulative Turning has granted to additions. advised base Page rehearing We base partial level rates of ICC grid In a the Ameren XXXX of filed XXXX enable plan rate from a rate increase on investment and XXXX by by for Illinois XXXX. request to the through address our annual million revenue $XXX XX.

and the request, preventive inventory, to includes energy system. business our safety, maintain which investments and day-to-day preserve operations and related would new of metering, to customer us relocations reliability to appropriately corrective Our costs maintenance, allow and grid

renewal The the increase ICC certain variance benefits of staff other recommends of of of scope a the staff to outside deemed million, $XXX rehearing. driven post-employment from primarily this the rate base, the with the by and XXXX projects latter be cumulative which

We to new rates allow ICC expect by effective be XXXX which interim rehearing XX, on will proceeding the an decision June by July.

Moving multiyear plan. to filed rate plan Ameren Page electric and revised revised In grid XX. Illinois March, its multiyear

provided actual on ]. the and on rate through requirement recoverable based Annual million base [ a XX%. The revenues rates X.XX% equity adjusted incentives revenue or costs, request cumulative ratio of revenue a cap penalties, on with based not equity for is increase from of a granted and exceed Our XXXX on does $XXX the annual year-end return will rehearing. any for equity an revenues return Request performance reconciliation actual supersede

we'll transition, the Our plans for of remainder full an over support year. affordable energy the as proposed which advocate

with XXXX. week, May. ICC the intervenor decision effective last and ICC And by Missouri for other a our Missouri in next an review. rate expect January December rates filed We X, In notice Ameren matters, expect PSC service XX-day we electric the regulatory staff with testimony

to Page XX financing to fee. a Moving provide

from first Ameren our to XXXX. And and/or $XXX bonds or bonds mortgage issued $XXX million both due financial X, X.X% On Ameren very Net proceeds debt. Missouri shorten January position. X, to million continue issuances XXXX. due were Missouri first used fund on of We feel X.XX% expenditures about good April capital refinance mortgage issued

we our equity shares, approximately beyond. for consisting us to in strong robust our this balance ATM expect of support plan, ATM million which is program our the and for needs order issue infrastructure to sheet, common sold our million to or of equity XXXX under million approximately and issue our of at-the-market in X.X XXXX. in Further, ratings to XXX(k) we $XXX under and we the approximately year. our while We fund maintain expect programs, $XXX issuance by end Together program, expected with equity DRIPlus credit

XX. to solid to Finally, Page well positioned our and in start We're a XXXX plan. off executing to turning continue

earnings continue We successfully strategy. XXXX to expect a comprehensive strong to execute we deliver business growth in as

continue disciplined to the strong robust to share rate we driven term, expect management. by cost growth and per Looking base earnings longer growth

believe also story. attractive growth offer growth total, this return continue shareholder to We an peers. shares will with have investors Ameren compare an total of attractive the we dividend. favorably our In

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

Operator

Instructions]. [Operator

Shar Our from Partners. Guggenheim comes first with question Pourreza

Shahriar Pourreza

Marty, elaborate to did it bit pull potential versus impact on like the see the decision on do IRP recent mean makes kind as can spend? EPA should of could regs. but maybe year's just you with of and updated through the an opportunities thinking touched Rush if a forward it spending IRP I see update timing more some on Labadie, maybe pathway fleet courts. generation scale shifts you last thing? like expand What the I an the bit be you we we here of you mean, a

Martin Lyons

number a mean, considerations. of outlined of I just still you've first we're all, the the Shar, all absorbing rules. Well,

to uncertainties of creates. to we'll a these and we'll But revision take into litigation the that will thoroughly And IRP. to rules account mean, rules you on to certainly, potential too, expect are that could IRP. And impacts coming that have assess our the be know, studying weeks, the and so likely be teams trying it new course, the are and what as really over so the our litigated,

that have. In prepared concerns a the noted we notable I couple more remarks, of my

The I first in think all combined And really on our the ready prime would really being sequestration, rules for we and time we have, as that capture which impact it is rely the perspective carbon expect megawatts from a XXXX, know, retire do important you the we Sioux planned things that recognize today. reliability that which Plant, in X,XXX cycle as our for XXXX XXXX coal-fired facility, plant to time really IRP our frame. plan frame, Power time is power

cycle new greater certainly, operate capture a and XX% capacity -- than would sequestration. to with which one And factor, combined carbon would that we by would that this expect impacted be

So to it planned that. to that implications certainly cycle as think combined has we'll through significant relates that And and facility. reassess have

mentioned to is one Energy plant is it Labadie with of our other other The really half in and XXXX about Center. the of phases That XXXX. in half retire it I scheduled

that would implications facility well. that natural trying through with have life XXXX bit. get in amount co-firing able date, out of permitted maintain the to So time, the And of the XXXX. order proposes But in ultimate and require the for be course, to that as rule pulling rules retirement challenges things forward little frame. in The to of gas time a certainly constructed

so prepared remarks my today. in highlighted And those I

reliability the and the at end Those have as rules, of So feasibility were about But our absolutely day, right. the Shar, ultimately primary concerns. these we at system. we our think I the do look of you're concerns

greater would over maintain of could the to that years. XX on and revisions certainly it to next cause the be required a about of investment IRP suggest reliability we our think these level system As balance, rules,

Shahriar Pourreza

customer was maybe you. I just color we it's kind on then of with quite some And it. impact going auction backdrop. design Got bit administrative structural a nuanced, breakout mean, but But error? an neutral obviously, kind or Is the again a perspective, on should which what of Zone it this large PRA you a X. for really exactly from or just expect just highlighted. should in

Michael Moehn

new moved construct, quite Michael. things. I variability. of X, I bit Shar, it's Zone this to couple mean, we we've seasonal you A see mean of did obviously, noted, a as

in You in and $X.XX $XX [ in the the winter the had CONE and the summer and at spring, fall ]. $X.XX then

an issue. is you mean, not note, issue. I this as energy It's So a capacity

it's so start think And I to that. with always important just

We available we providing expect respect to obviously is important. issues don't customers any energy think for foresee service, have to with reliable which enough I

don't complicated. as a also well. impact really little a from if I And any goes shifting to customer MISO some that any gets And revenue mean is will a and it the model material, see customers neutral be standpoint, it model we impact so on.

X, settle it there generation to with a a them. signal think spoke We have respect mean increased so I to I were is load. mean just dispatchable back, things in price due generation couple send and to meeting we're as off But mean Marty you additional was that helps owns in about. of I noted able my remarks. prepared those point to right to trying when hedges, it I Missouri step Zone I it

there respect probably some of some I there And would there's There some That capabilities. couple the think opportunities next in were past over then that. with years. that performance. go reduction should got import generation. some also, away a was issues to for They relieve accreditation transmission gain And

So from does a do the trying perspective. again, dispatchable what think, we're years. some work of to I this it relief see think, to speak Shar, next and And to around way there's couple I over a

Operator

Tonet Chase. from is Our Morgan Jeremy next JP with question

Jeremy Tonet

for specifically there? as environment soon. Missouri wanted looking think I legislation? What guess, Just us, I thoughts the to on far session could you're is legislative and ending go as there, PISA and And provide initiatives the you if to

so And any thoughts there would helpful. be

Martin Lyons

Yes, Jeremy, it. you got

today, piece is is that most line, likely here to legislation that the a we that the as get legislation. I finish think sit across of

of calendar XXX-XX as House probably know, XXXX And at Senate and and of passed for Senate which as so and I'm passed Bill positioned Commerce house and Bill Bills and time Committee. they're Passage XXXX, this in I could with for on be any Senate XXX a Bill House point the brought as session, Bills XXXX be sure is supportive third through and informal XXXX well Bill the reading. been up could you vote say, on Senate would as following you They're #X you've Senate out very at It's listed that House now the also strong XXX.

So well things are positioned.

to challenge time the X is done, legislative session The is does The significant some in short. on highlighted remarks, have May legislature however, budget. weeks prepared including that I in XX, the things and ends the the get

concern window stakeholders in So to done. the is get key continue whether short. it to towards But will we'll meantime, that's run with really just have passage work a we time the if

Jeremy Tonet

maybe towards it. helpful. Illinois. Got pivoting That's just And then

far are plan question thoughts rehearing other more As really, expectations incremental the refiling, you potential side can with any on there regulatory is constructive the development? the secure electric as processes there? versus Do maybe I share to the with see And more guess the legislature. concerned progression the you with any grid

Michael Moehn

Jeremy, if one regulatory that. the to on the legislative do come it's certainly Marty one, Michael. Maybe I'll wants can you handle

think to there. continuing -- I but things are move along

we our working the I feel seeing prepared. I through a you're hearings, where this think [indiscernible] we as the team results today. a going of work really getting just of from process. hard good of we done. Again, And just workshops, prepared here about of really work a remarks, stand mean, rehearing that think public rehearing this producing are et process, number mentioned cetera, kind number through this in proud has I

around with the finality -- piece the decision we'll in the And interim have plan this grid rates half so in January. to effective an rates then frame time obviously, plan, with a in It's in will adjustment. And procedural great have more of June July, in schedule here around have some that, a in multiyear we year. sometime the be early comprehensive back have and December this rate should

piece, the point. us rehearing this to respect between staff fairly With are the minimal differences and at

As for are we still indicated, comes million, there. OPEB at We we issues million It continuing right spoken the the to in X we've We issue today. were really at it's thing. down advocate that it that. and past. about sits The $XXX think $XXX to

the that grid projects if plan different in really goes were itself. range And I were into some accommodates our then it that direction. there deferred think a

another advocate And we'll those. to so have opportunity for

And feel at put that So again, time. this point stability feel and focused it on as in can you some is as we getting process. team back in good

Martin Lyons

Missouri point, really, to, course, in this Jeremy, nothing both this point in I legislative at terms add Illinois. year, of and mean, of Yes, to to initiatives,

states We our to to of see for refusal now. in right reliability of have advocate for either those nothing but as for the In supported right time, first broadly, the states. benefit customers of continue and grid those both but legislation a moving forward this on do at tack the we

Operator

Carly Davenport from Sachs. Our next Goldman with comes question

Carly Davenport

to just really the process. Illinois on follow up rehearing Maybe quickly

that extent gap? that can for potential of you you $XXX just then out? time the remind the any laid there embedded us, some June the is of First, revenue to guidance there flexibility 'XX there's million and earlier kind late come decision what there to frame is increase requested in And that than

Michael Moehn

is Michael. this Carly,

and little should With that no, on part at July. I time first, kind decision frame in expectation here is the of have a second the think point, a this

In that obviously what's million that terms over of embedded, period. of X-year $XXX sort is

out the ended XXXX. so see that, perspective rate the we step where you just something there for up broken a positions at good To earning in have we back again, feel from that extent are. and can that Again, have what capital, the And about of component, look we'd X.XX%. it's it embedded you're that sort to and just I mean, have changing to base a extent there's

really what first. minimizes along there. So the framework and options see our additional impact flexibility see that are. better about and feel mean we mean to we with process I obviously have I some But just to move the the capital looking have just do

Carly Davenport

Island, helpful. a to Or talked Rush sticks DOJ program this that piece that debate? think there a be sort maybe of and delta the you there else the hearing super out summer. then anything proposal as And is point the about into as between Ameren's proposal just of on a you debate That's you of expect that sizing bit about matter it. of Is Got there. just

Martin Lyons

asking you're Yes. case, talking Carly? asking about? -- Were about you were about which Yes, one you NSR

were. that of we I $XX and prepared relates about Department Justice Listen, a to in outlined outlined And the $XXX of when infrastructure, in charging components of million. very million programs a the NSR, electric program similar. set estimated programs value similar air our so school you that at terms at they've are the series proposed you remarks, up X we've filtration of look it think, is buses, the of program, slide a as as very

the So of sort the them. of the of mix. them cost it really But is a matter extent seemingly not and program of

through order. parties orders that ultimately talked that sort the of book of this I positions a either predict about mitigation the at reached court just relief can't mitigation a and really would ultimately would expect Department we was just court degree and speculate But though, have of order. ends that Justice between what We the for the settlement generally the point. can't So proposed further ourselves for the that

Operator

Our with next Associates. Glenrock from question Patterson Paul is

Paul Patterson

place to It up I might seems might largely I different it. I a batteries? just wondering, So Would what it's start you challenges is Would that you of be follow the -- of remedy sense think Could us have so might the associated mentioned, about? you lower? it running -- because Would mentioned thought I sequestration general carbon just there as so EPA that reliability for you challenging, many mean, just I'm more or wanted sort to stuff. -- would just do guess. assuming in be and on rule. of what sort give with the things reliability that be and you be got happen? be something, that capture would when plants

sort of in potentially seems a I wondering, there with schedules? kind saying. sort of, to a so depreciation would it any what about that know IRP mean, thing the just Or changing talk also, just change of very radical I'm sounds plan I'm like be difficult you And if

Martin Lyons

Well, Marty. Paul, it's

hit and reassessment the to you rules likelihood our the litigation, think rules. thorough of early of through at a to assessment considerations. go We the We're back factored which just be well will when of IRP. the And I number the in the in said a got to to got look days. I you've But And as think I'll have It's what going before. go battery storage And on again, considerations. you planned I of between XXX now plan of between of think XXXX. given got these. rules, generation EPA as and importance all rules 'XX now and I things. renewables it currently XXXX. got the got megawatts underscores planned importance XXXX. think simple-cycle we of megawatts taking now have the We megawatts of between I we're underscore certainly, steps those these XXX We've X,XXX and outlined, by the We've of of

I think implications that broader line. the are the down

of got the be bit for recovery. half be retire in I gas by with to change of for have think planned little I Center, into to XXXX, if that But a rules. that the Labadie in I to think XXXX, bigger the Labadie Energy the again, The ability that. we've there, Center be retirement retired respect natural co-fire gas would thing XXXX, Labadie it then it XXXX earlier, with half of line a the we generally getting depreciation able with to that of Sioux Energy in and need so mentioned

simple cycle alternative more of that facility and what combined combined is mean to on what I capture. can of renewables. system. plan storage when -- technology, feasibility for again, battery that But then for rules. mix maintain reassess dispatchable really And of that about you of factor, an XX% less to have But going more which the capacity light of are consider, doing might operate a capture capture, to your you're cycle you you've first cycle it think these it in things carbon have the cost much again, resources generation, carbon Because, got I calls doing otherwise that all, and the think anything renewables reliability finger you gas-fire the be those right, carbon more think over would of sort is if of you're

Paul Patterson

Okay.

I So just, we'll monitor guess, this.

focus Okay. just thoughts wondering lot places of Ameren That's you enhancing I those any on and officials very great have then potential you respect And in Washington on and was thought how and might there's with technologies. part been And at other to the of on transmission, that? deployment just a the helpful. about

Martin Lyons

our I operations Schukar on transmission comment Maybe will let who Shawn runs that.

Shawn Schukar

Yes. Thanks question. the for

So to the technology, we across care those look grid-enhancing means be utilizing and which we'll that of take complementary capacity those They we as the system. as grid also the system, more some at the from both. And the see allow some don't we'll through technologies like generally to combination of be making enhancements we see investments, flow of needs. us grid-enhancing but you a transition MISO, the support

Operator

Instructions]. [Operator

Our Nick Campanella with comes next from question Barclays.

Nicholas Campanella

that asking $XXX still see go item is view? this if Or kind like your year. But is does nature? on an DOJ mentioned against quickly in for figure, I line, I but end booked million. just it Rush know that the ask you, is this your mitigation O&M where which proposal the at And of because on we'll then hit of was in wanted obviously, to the that you of the an $XX million goes Island, ongoing the you ongoing risk in kind onetime more

Martin Lyons

And think, a great settles, item, question. it onetime I a this it ultimately, is Nick, nonrecurring. wherever is it's really

of think we out. operations it it to didn't sort it our the as to with look ongoing the today, carve that of talked we to call, about savings. cost on respect we'd Given overcome size appropriate of And

again, bookends ultimately, operations it is and something that ongoing I propose is, outlined, However, an But million be as and this affects earnings. agree that million the of whatever and think won't potential $XXX nonrecurring DOJ we or proposed court $XX cost ultimate and the the onetime like about we order settlement I would as you here. with probably

Nicholas Campanella

that. of the the half you're to I that you 'XX, appreciate line O&M to in really And as it back kind know have just I of relates highlighting sight plan. of this

you're midpoint? feel Or any at comments full the your you number guess So like trending just how on I versus at point? Are you any comments 'XX this there?

Michael Moehn

flex here that mean, to flexing we it's a what team Nick, O&M The on our need to read an Yes, $XXX about from focused Good obviously here. perspective. really you. Yes. on aligned is million completely look, Michael the of We to range. talked range we Friday million of programs. $XXX number midpoint I of

those we put point looking good kinds of think freezes hiring up at some this respect those the to part about of spending programs things. all in and fully the at discretionary I And feeling place looking and travel, that first contractors, are again, it. year with at ramped

a have history We of this. long

I the systems, stuff taking of us all of deployed productivity fully advantage mean automation. office heard and are a and technology we we've of and talk full automation great distribution accounting We've deal feel done of. AMI of an we driving number those have now we're about from HR things back from terms We've this. improvements You've perspective. systems, perspective doing really investment been a in

flex right that of decisions and reflecting and on the at of that flex different. together but for that this situation And have terrible do within and team continue day, really going XXXX, any a of make only of of and about the to the the sales end I as don't look was opportunities guidance millions about continue lost year, we tens for sort I a worth to And COVID and the long the week, year. term see opportunities. to ability end down came of little XX% thinking looked up needed. up We'll hitting we we're we are the as dollars for our And ultimately, for these to

Nicholas Campanella

ability more helpful past. based especially thing. and on to definitely really That's One flex acknowledge here, the

number the needs equity that's but some fourth what about? internal basically you're in of very for 'XX talked DRIP, be guys still $XXX a of your you thinking to programs beyond, kind year maybe and think Just clear, the are just right I about done quarter? outside 'XX million and is

Michael Moehn

that's in still stands, Yes, we February. back there That delivered correct. yes,

Operator

Wolfe question final Research. Paz Our from with is David

David Paz

for just projects are investment side, you from would the seeing maybe But could an on -- the there, expand the potentially project? incremental how maybe other down mentioned opportunity them I you size a along investment with of typical you the center and centers sense any Ameren much the size pipe of opportunities? large that data just come on customers. know what data Could particularly mentioned some

Michael Moehn

serving rates quickly, proposition, when here. start comes And and mean, about I number a in et presented mean, a this. are, what We our I'll on of in I we both we a capabilities, of I sewer sites think chime But went data as well. strong in position certainly, we've can Midwest where national ramp really transmission up value terms below start the both talked right, manufacturers. it and water centers Marty will probably to from strong that just average, both well states cetera. have

really cetera. never just of together leaders on a are to, is I've regional for development, work in general beyond to things development data grants manufacturers taxes, seen what state combined now, right local state workforce trying come this use they as incentives again, centers, terms effort, in together but offer various et we around and

place size. available customers have are based here in to location on and number We of incentives a that

executed estimated we've That's us. Dave, for construction today, and for XXX-megawatt sizable agreement an here sit we got X lows. it's center a As data

seen We this say, in serving We working time. that growth really, that. would X,XXX-plus kind really we're I beyond haven't megawatts be customer a load XXXX. long should by And of actively

online to probably moving projects last they'll few this, fruition, dispatchable are the renewables years, we've these IRP mean, all is the really so we along won't of need. stages think them And nicely. come this been in again, But I these are think again, about of as And differently. some but just that I in generation adding all and the really, exactly we of the different and what adding come

that very of add amount And million here well. number to expansion. started in is Missouri, City growth. is as doing products continue the Illinois, expansion. a the happening some there a continue manufacturer side expansion. also largest a are billion to Boeing beyond I Wieland in mean rolled of Jefferson should mean, of state here a the data large I in Unilever manufacturing $XXX tremendous just projects significant -- there's centers, $X.X

it's net that means perspective, what a a capital positive. obviously, In terms of from

great going day. obviously continue and to certainly But the more and a see we're think back affordable certainly that. to investment for affordability it's customers customer of step it's it perspective, I to assess going at Because right? to all standpoint make the from end an

David Paz

one. just sneak a Maybe Great. quick

dollars? to I Tranche to size Is areas. what service in sounded terms sense the X concept be like think either same potential looks at that roughly the how initial initial Tranche of compare that your you for tranche, dollar your suggests some there X the concept guys? opportunities it will in Any map you or

Martin Lyons

we you of as And I'll Marty. tell in well, both lines, proposed our of we David, see the look and provided, our if service is in as think territory map as at all, additional first the you'll XX that shared. is you, Missouri. Slide eastern substantial encouraging half Central well in this I Illinois

portfolio was a be we that's so up XX% have X. about to happy in our about the the projects having We're else, that sure about was about as of to of some I'm directly. of And ended service the excited proud that, twice talked certainly all Tranche $XX on call, We're were awarded size won and Tranche recalls competitive were the very we exciting see. territory. to project billion portfolio. X overall Everybody X that We

certainly the turned feel good way Tranche we about So out. X

in One, would of proposed the I And that were plans project the soon be will level the do service now, of from really while through going Tranche -- expect MISO stakeholders in territory of say from service about is be would these considers investment excited that modified. from really too projects. that territory, for a what as as input input we're reasons. It's projects our stakeholders X we couple regarding to right say all you various our these know, MISO that process these getting a

one. premature there, it's number So

these when came put didn't really lines, particular substations It of MISO out didn't portfolio overall in quantification value or put two, cetera. up to particular X, they of an billion. et Number $XX $XX they investment billion with really assign investment while Tranche any

these shown map. opportunities would say So on how really premature to this much investment be even that are

would in or So greenfield. of be territory. much much say service for a And reasons, brownfield this ultimately, our would think how couple be it's how of I to premature

but through seems time, to we MISO very see targeting we're that I think excited to and will -- mid-September. much So the start to an this approval by portfolio iterations X be of Tranche

unfolds. it -- exciting over pretty should this so and next And as we the how months few see be

Operator

to the the I'd reached to closing now question-and-answer turn session. for of the end like over call Marty comments. Lyons back We've

Martin Lyons

hey, Well, weeks. And Andrew, a of next everybody weekend. for a With Michael great joining day Great. thank X. Annual invite have attend our on thanks, and May in We the I that, Meeting, then Shareholder which to us and couple you seeing Financial and today. AGA you of to is to a look want great Forum week at forward many

Operator

This concludes today's conference.

may you participation. disconnect time, and You your at lines thank we your for this

Ameren (AEE) 3 May 242024 Q1 Earnings call transcript