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| Current regulatory assets | | | | | |
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| Other current assets | | | | | |
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| Total current assets | | | | | |
| Property, Plant, and Equipment, Net | | | | | |
| Investments and Other Assets: | | | |
| Nuclear decommissioning trust fund | | | | | |
| Goodwill | | | | | |
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| Regulatory assets | | | | | |
| Pension and other postretirement benefits | | | | | |
| Other assets | | | | | |
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| Total investments and other assets | | | | | |
| TOTAL ASSETS | $ | | | | $ | | |
| LIABILITIES AND EQUITY | | | |
| Current Liabilities: | | | |
| Current maturities of long-term debt | $ | | | | $ | | |
| Short-term debt | | | | | |
| Accounts and wages payable | | | | | |
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| Customer deposits | | | | | |
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| Other current liabilities | | | | | |
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| Total current liabilities | | | | | |
| Long-term Debt, Net | | | | | |
| Deferred Credits and Other Liabilities: | | | |
| Accumulated deferred income taxes and tax credits, net | | | | | |
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| Regulatory liabilities | | | | | |
| Asset retirement obligations | | | | | |
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| Other deferred credits and liabilities | | | | | |
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| Total deferred credits and other liabilities | | | | | |
| Commitments and Contingencies (Notes 2, 9, and 10) | par value, shares authorized – shares outstanding of and , respectively | | | | | |
| Other paid-in capital, principally premium on common stock | | | | | |
| Retained earnings | | | | | |
| Accumulated other comprehensive loss | () | | | () | |
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| Total shareholders’ equity | | | | | |
| Noncontrolling Interests | | | | | |
| Total equity | | | | | |
| TOTAL LIABILITIES AND EQUITY | $ | | | | $ | | |
The accompanying notes are an integral part of these consolidated financial statements.
| | | | | | | | | | | |
| AMEREN CORPORATION |
| CONSOLIDATED STATEMENT OF CASH FLOWS |
| (Unaudited) (In millions) |
| | Three Months Ended March 31, |
| | 2024 | | 2023 |
| Cash Flows From Operating Activities: | | | |
| Net income | $ | | | | $ | | |
|
| Adjustments to reconcile net income to net cash provided by operating activities: | | | |
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| Depreciation and amortization | | | | | |
| Amortization of nuclear fuel | | | | | |
| Amortization of debt issuance costs and premium/discounts | | | | | |
| Deferred income taxes and investment tax credits, net | | | | | |
| Allowance for equity funds used during construction | () | | | () | |
| Stock-based compensation costs | | | | | |
| Other | | | | () | |
| Changes in assets and liabilities: | | | |
| Receivables | | | | | |
| Inventories | | | | | |
| Accounts and wages payable | () | | | () | |
| Taxes accrued | | | | | |
| Regulatory assets and liabilities | () | | | () | |
| Assets, other | | | | () | |
| Liabilities, other | | | | () | |
| Pension and other postretirement benefits | () | | | () | |
| Counterparty collateral, net | | | | | |
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| Net cash provided by operating activities | | | | | |
| Cash Flows From Investing Activities: | | | |
| Capital expenditures | () | | | () | |
|
| Nuclear fuel expenditures | () | | | () | |
| Purchases of securities – nuclear decommissioning trust fund | () | | | () | |
| Sales and maturities of securities – nuclear decommissioning trust fund | | | | | |
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| Other | | | | () | |
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| Net cash used in investing activities | () | | | () | |
| Cash Flows From Financing Activities: | | | |
| Dividends on common stock | () | | | () | |
| Dividends paid to noncontrolling interest holders | () | | | () | |
| Short-term debt, net | | | | | |
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| Issuances of long-term debt | | | | | |
| Issuances of common stock | | | | | |
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| Employee payroll taxes related to stock-based compensation | () | | | () | |
| Debt issuance costs | () | | | () | |
| Other | | | | () | |
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| Net cash provided by financing activities | | | | | |
| Net change in cash, cash equivalents, and restricted cash | | | | | |
| Cash, cash equivalents, and restricted cash at beginning of year | | | | | |
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| Cash, cash equivalents, and restricted cash at end of period | $ | | | | $ | | |
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The accompanying notes as they relate to Ameren Missouri are an integral part of these consolidated financial statements.
UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
CONSOLIDATED BALANCE SHEET
(Unaudited) (In millions, except per share amounts)
| | | | | | | | | | | |
| March 31,
2024 | | December 31, 2023 |
| ASSETS | | | |
| Current Assets: | | | |
| Cash and cash equivalents | $ | | | | $ | | |
|
Accounts receivable – trade (less allowance for doubtful accounts of $ and $, respectively) | | | | | |
| Accounts receivable – affiliates | | | | | |
| Unbilled revenue | | | | | |
| Miscellaneous accounts receivable | | | | | |
| Inventories | | | | | |
|
| Current regulatory assets | | | | | |
|
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| Other current assets | | | | | |
| Total current assets | | | | | |
| Property, Plant, and Equipment, Net | | | | | |
| Investments and Other Assets: | | | |
| Nuclear decommissioning trust fund | | | | | |
|
| Regulatory assets | | | | | |
| Pension and other postretirement benefits | | | | | |
| Other assets | | | | | |
| Total investments and other assets | | | | | |
| TOTAL ASSETS | $ | | | | $ | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | |
| Current Liabilities: | | | |
| Current maturities of long-term debt | $ | | | | $ | | |
| Short-term debt | | | | | |
| Borrowings from money pool | | | | | |
| Accounts and wages payable | | | | | |
| Accounts payable – affiliates | | | | | |
| Taxes accrued | | | | | |
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| Other current liabilities | | | | | |
| Total current liabilities | | | | | |
| Long-term Debt, Net | | | | | |
| Deferred Credits and Other Liabilities: | | | |
| Accumulated deferred income taxes and tax credits, net | | | | | |
|
| Regulatory liabilities | | | | | |
| Asset retirement obligations | | | | | |
|
| Other deferred credits and liabilities | | | | | |
| Total deferred credits and other liabilities | | | | | |
| Commitments and Contingencies (Notes 2, 8, 9, and 10) | par value, shares authorized – shares outstanding | | | | | |
| Other paid-in capital, principally premium on common stock | | | | | |
| Preferred stock | | | | | |
| Retained earnings | | | | | |
| Total shareholders’ equity | | | | | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | | | | $ | | |
The accompanying notes as they relate to Ameren Missouri are an integral part of these consolidated financial statements.
UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited) (In millions)
| | | | | | | | | | | |
| Three Months Ended March 31, |
| 2024 | | 2023 |
| Cash Flows From Operating Activities: | | | |
| Net income | $ | | | | $ | | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | |
|
| Depreciation and amortization | | | | | |
| Amortization of nuclear fuel | | | | | |
|
| Amortization of debt issuance costs and premium/discounts | | | | | |
| Deferred income taxes and investment tax credits, net | | | | | |
| Allowance for equity funds used during construction | () | | | () | |
| Other | | | | () | |
| Changes in assets and liabilities: | | | |
| Receivables | | | | | |
| Inventories | | | | () | |
| Accounts and wages payable | () | | | () | |
| Taxes accrued | | | | | |
| Regulatory assets and liabilities | () | | | | |
| Assets, other | | | | | |
| Liabilities, other | | | | () | |
| Pension and other postretirement benefits | () | | | () | |
| Counterparty collateral, net | | | | | |
| Net cash provided by operating activities | | | | | |
| Cash Flows From Investing Activities: | | | |
| Capital expenditures | () | | | () | |
|
| Nuclear fuel expenditures | () | | | () | |
| Purchases of securities – nuclear decommissioning trust fund | () | | | () | |
| Sales and maturities of securities – nuclear decommissioning trust fund | | | | | |
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| Net cash used in investing activities | () | | | () | |
| Cash Flows From Financing Activities: | | | |
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| Dividends on preferred stock | () | | | () | |
| Short-term debt, net | | | | () | |
| Money pool borrowings, net | () | | | | |
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| Issuances of long-term debt | | | | | |
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The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.
AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
BALANCE SHEET
(Unaudited) (In millions)
| | | | | | | | | | | |
| March 31,
2024 | | December 31, 2023 |
| ASSETS | | | |
| Current Assets: | | | |
| Cash and cash equivalents | $ | | | | $ | | |
|
Accounts receivable – trade (less allowance for doubtful accounts of $ and $, respectively) | | | | | |
| Accounts receivable – affiliates | | | | | |
| Unbilled revenue | | | | | |
| Miscellaneous accounts receivable | | | | | |
| Inventories | | | | | |
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|
| Current regulatory assets | | | | | |
|
| Other current assets | | | | | |
| Total current assets | | | | | |
| Property, Plant, and Equipment, Net | | | | | |
| Investments and Other Assets: | | | |
| Goodwill | | | | | |
| Regulatory assets | | | | | |
| Pension and other postretirement benefits | | | | | |
| Other assets | | | | | |
| Total investments and other assets | | | | | |
| TOTAL ASSETS | $ | | | | $ | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | |
| Current Liabilities: | | | |
| Current maturities of long-term debt | $ | | | | $ | | |
| Short-term debt | | | | | |
| Borrowings from money pool | | | | | |
| Accounts and wages payable | | | | | |
| Accounts payable – affiliates | | | | | |
|
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| Customer deposits | | | | | |
|
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| Current regulatory liabilities | | | | | |
| Other current liabilities | | | | | |
| Total current liabilities | | | | | |
| Long-term Debt, Net | | | | | |
| Deferred Credits and Other Liabilities: | | | |
| Accumulated deferred income taxes and investment tax credits, net | | | | | |
|
| Regulatory liabilities | | | | | |
|
|
| Other deferred credits and liabilities | | | | | |
| Total deferred credits and other liabilities | | | | | |
| Commitments and Contingencies (Notes 2, 8, and 9) | par value, shares authorized – shares outstanding | | | | | |
| Other paid-in capital | | | | | |
| Preferred stock | | | | | |
| Retained earnings | | | | | |
|
| Total shareholders’ equity | | | | | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | | | | $ | | |
The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.
AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
STATEMENT OF CASH FLOWS
(Unaudited) (In millions)
| | | | | | | | | | | |
| Three Months Ended March 31, |
| 2024 | | 2023 |
| Cash Flows From Operating Activities: | | | |
| Net income | $ | | | | $ | | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | |
| Depreciation and amortization | | | | | |
| Amortization of debt issuance costs and premium/discounts | | | | | |
| Deferred income taxes and investment tax credits, net | | | | | |
|
| Allowance for equity funds used during construction | | | | () | |
| Other | | | | | |
| Changes in assets and liabilities: | | | |
| Receivables | | | | | |
| Inventories | | | | | |
| Accounts and wages payable | () | | | () | |
| Taxes accrued | | | | | |
| Regulatory assets and liabilities | () | | | () | |
| Assets, other | | | | () | |
| Liabilities, other | | | | | |
| Pension and other postretirement benefits | () | | | () | |
| Counterparty collateral, net | | | | | |
|
| Net cash provided by operating activities | | | | | |
| Cash Flows From Investing Activities: | | | |
| Capital expenditures | () | | | () | |
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| Other | | | | | |
| Net cash used in investing activities | () | | | () | |
| Cash Flows From Financing Activities: | | | |
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| Short-term debt, net | | | | | |
| Money pool borrowings, net | () | | | | |
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The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.
AMEREN CORPORATION (Consolidated)
UNION ELECTRIC COMPANY (Consolidated) (d/b/a Ameren Missouri)
AMEREN ILLINOIS COMPANY (d/b/a Ameren Illinois)
COMBINED NOTES TO FINANCIAL STATEMENTS
(Unaudited)
March 31, 2024
NOTE 1 –
million and $ million, respectively, included in “Other assets” on Ameren’s consolidated balance sheet. Any earnings or losses related to these investments are included in “Other Income, Net” on Ameren’s consolidated statement of income and comprehensive income. Ameren is not the primary beneficiary of these investments because it does not have the power to direct matters that most significantly affect the activities of these variable interest entities. As of March 31, 2024, Ameren’s maximum exposure to loss related to these variable interests is limited to its investment of $ million plus associated outstanding funding commitments of $ million. As of March 31, 2024, the cash surrender value of COLI at Ameren and Ameren Illinois was $ million (December 31, 2023 – $ million) and $ million (December 31, 2023 – $ million), respectively, while total borrowings against the policies were $ million (December 31, 2023 – $ million) at both Ameren and Ameren Illinois. Ameren and Ameren Illinois have the right to offset the borrowings against the cash surrender value of the policies and, consequently, present the net asset in “Other assets” on their respective balance sheets. The net cash surrender value of Ameren’s COLI is affected by the investment performance of a separate account in which Ameren holds a beneficial interest.
NOTE 2 –
-MW-MW | -MW | -MW | -MW | -MW | | Status of MoPSC CCN | Approved February 2023 | Approved April 2023 | Approved March 2024 | Filed June 2023(g) | Approved March 2024 | Approved March 2024 |
| Status of FERC approval of acquisition | Received March 2023 | Received October 2023 | Expect to request by mid-2024 | Not applicable | Not applicable | Not applicable |
Earliest completion date(h) | Fourth quarter 2024 | Fourth quarter 2024 | Mid-2026 | Fourth quarter 2024 | Fourth quarter 2025 | First quarter 2026 |
(a)The Huck Finn Solar Project is expected to support Ameren Missouri’s compliance with the state of Missouri’s renewable energy standard. Investments in the project will be eligible for recovery under the RESRAM.
(b)These projects collectively represent approximately $ billion of expected capital expenditures.
(c)The Boomtown and Cass County solar projects are expected to support Ameren Missouri’s transition to renewable energy generation and serve customers under the Renewable Solutions Program.
(d)These solar projects are expected to support Ameren Missouri’s transition to renewable energy generation.
(e)Ameren Missouri entered into an agreement to acquire the Cass County Solar Project, which includes project design, land rights, and engineering, procurement, and construction agreements for a solar generation facility. Ameren Missouri will take over construction management of the Cass County facility after obtaining a CCN from the MoPSC and acquiring the project. Acquisition of the project is expected by mid-2024.
(f)Ameren Missouri entered into engineering, procurement, and construction agreements to construct these solar projects.
(g)Approval for the CCN is conditioned upon full subscription of the project capacity under the Renewable Solutions Program, a commercial, industrial, and governmental customer program. Ameren Missouri expects a decision by the MoPSC on the Cass County Solar Project CCN once this project’s capacity under the Renewable Solutions Program is fully subscribed.
(h)Expected completion dates are dependent on the timing of regulatory approvals, among other things.
Securitization of Rush Island Energy Center Costs
In November 2023, Ameren Missouri petitioned the MoPSC for a financing order to authorize the issuance of securitized utility tariff bonds to finance $ million of costs related to the planned accelerated retirement of the Rush Island Energy Center, which includes the expected remaining unrecovered net plant balance associated with the facility, among other costs. Ameren Missouri requested to collect the amounts necessary to repay the bonds over approximately years from the date of bond issuance. In March 2024, the MoPSC staff filed an updated response to Ameren Missouri’s petition that stated Ameren Missouri’s decision to accelerate the retirement of the Rush Island Energy Center was prudent and recommended that $ million of costs be financed through securitized utility tariff bonds. However, the MoPSC staff claimed Ameren Missouri’s prior actions that resulted in the adverse ruling in the NSR and Clean Air Act Litigation discussed in Note 9 – Commitments and Contingencies were imprudent and recommended that the impact of those actions on customers be considered in future regulatory proceedings. In February 2024, the MoOPC filed a response to Ameren Missouri’s petition that opposes the issuance of securitized utility tariff bonds. If Ameren Missouri is not allowed to recover Rush Island Energy Center costs through securitization or if future regulatory proceedings result in revenue reductions based on Ameren Missouri’s prior actions that resulted in the adverse ruling in the NSR and Clean Air Act litigation, it could have a material adverse effect on the results of operations, financial position, and liquidity of Ameren and Ameren Missouri. Ameren Missouri expects a decision by the MoPSC by the end of June 2024, but cannot predict the ultimate outcome of this regulatory proceeding.
MEEIA
In January 2024, Ameren Missouri filed a proposed customer energy-efficiency plan with the MoPSC under the MEEIA. This filing proposed a three-year plan, which includes a portfolio of customer energy-efficiency programs, along with the continued use of the MEEIA rider, which allows Ameren Missouri to collect from, or refund to, customers any difference in actual MEEIA program costs and related lost
million annually in the proposed customer energy-efficiency programs from 2025 to 2027. In addition, Ameren Missouri requested performance incentives applicable to each plan year to earn revenues by achieving certain customer energy-efficiency savings and target spending goals. If % of the goals are achieved, Ameren Missouri would earn performance incentive revenues totaling $ million over the three-year plan. Ameren Missouri also requested additional performance incentives applicable to each plan year totaling up to $ million over the three-year plan, if Ameren Missouri exceeds % of the goals. Ameren Missouri expects a decision by the MoPSC by October 2024, but cannot predict the ultimate outcome of this regulatory proceeding.Illinois
MYRP
In December 2023, the ICC issued an order in Ameren Illinois' MYRP proceeding approving base rates for electric distribution services for 2024 through 2027 and rejecting Ameren Illinois' Grid Plan, which was addressed as part of the MYRP proceeding. Rate changes consistent with the order became effective in January 2024. The December 2023 order adopted an alternative methodology to establish a rate base and revenue requirements for the years 2024 through 2027 using Ameren Illinois’ previously approved 2022 year-end rate base. The 2022 year-end rate base will remain in effect through 2027 unless subsequently changed by the ICC in the rehearing discussed below or if approval of a revised Grid Plan results in an update of each year’s revenue requirement. Pursuant to the order, in March 2024, Ameren Illinois filed a revised Grid Plan and a revised MYRP to update the requested revenue requirements for 2024 through 2027. An ICC decision on the revised Grid Plan and updated revenue requirements is expected by December 2024 with rates effective in January 2025.
In January 2024, the ICC partially denied a rehearing requested by Ameren Illinois to revise the allowed ROE in the December 2023 order and granted Ameren Illinois’ rehearing request to consider whether it is appropriate to use the 2022 year-end rate base for each year of the MYRP and to include a base level of investments to maintain grid reliability in each year of the MYRP. Additionally, the scope of the rehearing includes a review of certain operations and maintenance expenses in each year of the MYRP. In February 2024, Ameren Illinois filed its request in the rehearing proceeding, and subsequently updated the request in April 2024, proposing an updated 2024 revenue requirement of $ million, which is based on a $ billion rate base, a capital structure composed of % common equity, and an allowed ROE of %. In April 2024, the ICC staff filed its recommendation in the rehearing proceeding. The ICC staff recommended a 2024 revenue requirement of $ million, which is based on a $ billion rate base, a capital structure composed of % common equity, and an allowed ROE of %. An ICC decision in the rehearing proceeding is expected by late June 2024, with new rates effective July 2024. Also, in January 2024, Ameren Illinois filed an appeal of the December 2023 ICC order and the partial denial of Ameren Illinois’ request for rehearing, including the % ROE, to the Illinois Appellate Court for the Fifth Judicial District. The court is under no deadline to address the appeal. Ameren Illinois cannot predict the ultimate outcome of the revised Grid Plan filing, its request to update the associated MYRP revenue requirements for 2024 through 2027, the rehearing proceeding, or the appeal to the Illinois Appellate Court for the Fifth Judicial District.
% | % | $ | | 2025 | $ | % | % | $ |
| 2026 | $ | % | % | $ |
| 2027 | $ | % | % | $ |
| Ameren Illinois’ March 2024 Revised MYRP: | | | | |
| 2024 | $ | (a) | % | $ |
| 2025 | $ | (a) | % | $ |
| 2026 | $ | (a) | % | $ |
| 2027 | $ | (a) | % | $ |
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| (a)Based on an allowed ROE of %. Ameren Illinois’ filing requests the ICC to increase the allowed ROE to %.
The approved revenue requirements in the ICC’s December 2023 order represent a cumulative four-year increase of $ million compared to a cumulative increase of $ million in Ameren Illinois’ March 2024 revised MYRP.
million. The reconciliation adjustment reflects a capital structure composed of % common equity and Ameren Illinois’ actual 2023 recoverable costs and year-end rate base. An ICC decision in this proceeding is required by December 2024, and any approved adjustment would be collected from customers in 2025. This is the final revenue requirement reconciliation under the IEIMA formula framework.2023 Natural Gas Delivery Service Rate Order
In November 2023, the ICC issued an order in Ameren Illinois’ January 2023 natural gas delivery service regulatory rate review, which resulted in an increase to its annual revenues for natural gas delivery service of $ million based on a % allowed ROE, a capital structure composed of % common equity, and a rate base of approximately $ billion. The order reflected a reduction of approximately $ million of planned distribution and transmission capital investments included in Ameren Illinois’ requested revenue increase, which used a 2024 future test year. The new rates became effective on November 28, 2023.
In December 2023, Ameren Illinois filed a request for rehearing of the ICC’s November 2023 order. The filing requested the ICC revise the order to include an allowed ROE of at least %, a capital structure composed of % common equity, and the reversal of the approximately $ million reduction of planned distribution and transmission capital investments included in the order, among other things. In January 2024, the ICC denied Ameren Illinois’ rehearing request. Subsequently, in January 2024, Ameren Illinois filed an appeal of the November 2023 ICC order and the January 2024 ICC denial of Ameren Illinois’ request for rehearing to the Illinois Appellate Court for the Fifth Judicial District. The court is under no deadline to address the appeal. Ameren Illinois cannot predict the ultimate outcome of this appeal.
QIP Reconciliation Hearing
In March 2021, Ameren Illinois filed a request with the ICC to initiate a reconciliation proceeding to determine the accuracy and prudence of natural gas capital investments recovered under the QIP rider during 2020. In October 2023, the Illinois Attorney General’s office challenged the recovery of capital investments that were made during 2020, alleging that the ICC should disallow approximately $ million in natural gas capital investments as improper and imprudent, providing a potential over-recovery of approximately $ million in 2020. In October 2023, the ICC staff filed testimony that supports the prudence and reasonableness of the capital investments made during 2020. Ameren Illinois’ 2020 QIP rate recovery request under review by the ICC was within the rate increase limitations allowed by law. The ICC is under no deadline to issue an order in this proceeding. Ameren Illinois cannot predict the ultimate outcome of this regulatory proceeding.
MISO Long-Range Transmission Projects CCN
In July 2022, the MISO approved the first tranche of projects related to a preliminary long-range transmission planning roadmap of projects through 2039. A portion of these projects were assigned to various utilities, including Ameren. In February 2024, Ameren Illinois and ATXI filed a request for a CCN, among other things, with the ICC related to the portion of the MISO long-range transmission projects that will be constructed within the ICC’s jurisdiction. A decision by the ICC is expected by mid-2025.
Federal
FERC Complaint Cases
Since November 2013, the allowed base ROE for FERC-regulated transmission rate base under the MISO tariff has been subject to customer complaint cases and has been changed by various FERC orders. In May 2020, the FERC issued an order, which set the allowed base ROE to % and required refunds, with interest, for the periods November 2013 to February 2015 and from late September 2016 forward. Ameren and Ameren Illinois paid these refunds, including interest, by March 31, 2022. In June and July 2020, Ameren Missouri, Ameren Illinois, and ATXI, as well as various customers, petitioned the United States Court of Appeals for the District of Columbia Circuit for review of the May 2020 order, challenging certain aspects of the new ROE methodology established. The petition filed by Ameren Missouri, Ameren Illinois, and ATXI challenged the refunds required for the period from September 2016 to May 2020. In August 2022, the court issued a ruling that granted the customers’ petition for review, vacated the FERC’s previous MISO ROE-determining orders, and remanded the proceedings to the FERC. The court elected not to rule on the issues raised by Ameren Missouri, Ameren Illinois, and ATXI. The currently allowed base ROE of % will remain effective for customer billings, but the transmission rates charged during previous periods and the currently effective rates may be subject to refund if the base ROE is changed by the FERC in a future order. The FERC is under no deadline to issue an order related to these proceedings. A -basis-point change in the FERC-allowed ROE would affect Ameren’s and Ameren Illinois’ annual revenue by an estimated $ million and $ million, respectively, based on each company’s 2024 projected rate base.
NOTE 3 –
billion. The Ameren Companies were in compliance with the covenants in their Credit Agreements as of March 31, 2024. As of March 31, 2024, the ratios of consolidated indebtedness to consolidated total capitalization, calculated in accordance with the provisions of the Credit Agreements, were %, %, and % for Ameren, Ameren Missouri, and Ameren Illinois, respectively. | | | $ | | |
| Ameren Missouri | | | | | | |
| Ameren Illinois | | | | | | |
| Ameren consolidated | $ | | | | | $ | | |
The following table summarizes the activity and relevant interest rates for Ameren (parent)’s, Ameren Missouri’s, and Ameren Illinois’ commercial paper issuances and borrowings under the Credit Agreements in the aggregate for the three months ended March 31, 2024 and 2023:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Ameren
(parent) | | Ameren
Missouri | | Ameren
Illinois | | Ameren
Consolidated | |
| 2024 | | | | | | | | | |
| Average daily amount outstanding | | $ | | | | $ | | | | $ | | | | $ | | | |
| |
| Weighted-average interest rate | | | % | | | % | | | % | | | % | |
Peak amount outstanding during period(a) | | $ | | | | $ | | | | $ | | | | $ | | | |
| Peak interest rate | | | % | | | % | | | % | | | % | |
| 2023 | | | | | | | | | |
| Average daily amount outstanding | | $ | | | | $ | | | | $ | | | | $ | | | |
| |
|
|
|
| | | | |
|
))
|
))
|
| | | | |
|
))| | | | $ | | | |
(a)For the three months ended March 31, 2024 and 2023, the non-service cost components of net periodic benefit income were adjusted by amounts deferred of $() million and $ million, respectively, due to a regulatory tracking mechanism for the difference between the level of such costs incurred by Ameren Missouri under GAAP and the level of such costs included in rates. See Note 11 – Retirement Benefits for additional information.
NOTE 6 –
As of March 31, 2024, and December 31, 2023, all contracts that met the definition of a derivative and were not eligible for the NPNS exception received regulatory deferral. The cash flows from our derivative financial instruments follow the cash flow classification of the hedged item. | | | | | | | | | | | | Natural gas (in mmbtu) | | | | | | | | | | | | |
| Power (in MWhs) | | | | | | | | | | | | |
| Uranium (pounds in thousands) | | | | | | | | | | | | |
| | | $ | | | | | $ | | | | | | $ | | | | | $ | | | | | $ | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Natural gas | Other current assets | | | | | | | | | | | | | | | | | | | | | | | | |
| Other assets | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Power | Other current assets | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Uranium | Other current assets | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| Total assets | | $ | | | | | $ | | | | | $ | | | | | | $ | | | | | $ | | | | | $ | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Fuel oils | Other current liabilities | | $ | | | | | $ | | | | | $ | | | | | | $ | | | | | $ | | | | | $ | | |
| Other deferred credits and liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Natural gas | Other current liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
| Other deferred credits and liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Power | Other current liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
| Other deferred credits and liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Total liabilities | | $ | | | | | $ | | | | | $ | | | | | | $ | | | | | $ | | | | | $ | | |
| | $ | | | | $ | | | | $ | | | | Ameren Illinois | | | | | | | | | | | | |
| Ameren | | $ | | | | $ | | | | $ | | | | $ | | |
| Liabilities: | | | | | | | | |
| Ameren Missouri | | $ | | | | $ | | | | $ | | | | $ | | |
| Ameren Illinois | | | | | | | | | | | | |
| Ameren | | $ | | | | $ | | | | $ | | | | $ | | |
| December 31, 2023 | | | | | | | | |
| Assets: | | | | | | | | |
| Ameren Missouri | | $ | | | | $ | | | | $ | | | | $ | | |
| Ameren Illinois | | | | | | | | | | | | |
| Ameren | | $ | | | | $ | | | | $ | | | | $ | | |
| Liabilities: | | | | | | | | |
| Ameren Missouri | | $ | | | | $ | | | | $ | | | | $ | | |
| Ameren Illinois | | | | | | | | | | | | |
| Ameren | | $ | | | | $ | | | | $ | | | | $ | | |
| | |
|
|
|
|
| (a)Cash collateral received reduces gross asset balances and is included in “Other current liabilities” and “Other deferred credits and liabilities” on the balance sheet. Cash collateral posted reduces gross liability balances and is included in “Current collateral assets” and “Other assets” on the balance sheet for Ameren and Ameren Missouri and “Other current assets” and “Other assets” for Ameren Illinois.
Credit Risk
In determining our concentrations of credit risk related to derivative instruments, we review our individual counterparties and categorize each counterparty into groupings according to the primary business in which each engages. As of March 31, 2024, if counterparty groups were to fail completely to perform on contracts, the Ameren Companies’ maximum exposure related to derivative assets, predominantly from financial institutions, would have been immaterial with or without consideration of the application of master netting arrangements or similar agreements and collateral held.
Certain of our derivative instruments contain collateral provisions tied to the Ameren Companies’ credit ratings. If our credit ratings were downgraded below investment grade, or if a counterparty with reasonable grounds for uncertainty regarding our ability to satisfy an obligation requested adequate assurance of performance, additional collateral postings might be required. The additional collateral required is the net liability position allowed under master netting arrangements or similar agreements, assuming (1) the credit risk-related contingent features underlying these arrangements were triggered and (2) those counterparties with rights to do so requested collateral.
| | $ | | | | $ | | |
| Ameren Illinois | | | | | | | | |
| Ameren | $ | | | | $ | | | | $ | | |
(a)Before consideration of master netting arrangements or similar agreements.
.NOTE 7 –
| $ | | | $ | | | $ | | | | | $ | | | $ | | | $ | | | $ | | | | | Natural gas | | | | | | | | | | | | | | | | | | | |
| Power | | | | | | | | | | | | | | | | | | | |
| Uranium | | | | | | | | | | | | | | | | | | | |
| Total derivative assets – commodity contracts | $ | | | $ | | | $ | | | $ | | | | | $ | | | $ | | | $ | | | $ | | | |
| Nuclear decommissioning trust fund: | | | | | | | | | | | |
| | | | |
| Equity securities: | | | | | | | | | | | |
| U.S. large capitalization | $ | | | $ | | | $ | | | $ | | | | | $ | | | $ | | | $ | | | $ | | | |
| Debt securities: | | | | | | | | | | | |
| U.S. Treasury and agency securities | | | | | | | | | | | | | | | | | | | |
| Corporate bonds | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | | |
| Other | | | | | | | | | | | | | | | | | | | |
| Total nuclear decommissioning trust fund | $ | | | $ | | | $ | | | $ | | | (a) | | $ | | | $ | | | $ | | | $ | | | (a) |
| Total Ameren Missouri | $ | | | $ | | | $ | | | $ | | | | | $ | | | $ | | | $ | | | $ | | | |
| Ameren Illinois | | | | | | | | | | | |
| Derivative assets – commodity contracts: | | | | | | | | | | | |
| Natural gas | $ | | | $ | | | $ | | | $ | | | | | $ | | | $ | | | $ | | | $ | | | |
| Power | | | | | | | | | | | | | | | | | | | |
| Total Ameren Illinois | $ | | | $ | | | $ | | | $ | | | | | $ | | | $ | | | $ | | | $ | | | |
| Ameren | | | | | | | | | | | |
| Derivative assets – commodity contracts(b) | $ | | | $ | | | $ | | | $ | | | | | $ | | | $ | | | $ | | | $ | | | |
| Nuclear decommissioning trust fund(c) | | | | | | | | | (a) | | | | | | | | | | (a) |
| Total Ameren | $ | | | $ | | | $ | | | $ | | | | | $ | | | $ | | | $ | | | $ | | | |
| Liabilities: | | | | | | | | | | | |
| Ameren Missouri | | | | | | | | | | | |
| Derivative liabilities – commodity contracts: | | | | | | | | | | | |
| Fuel oils | $ | | | $ | | | $ | | | $ | | | | | $ | | | $ | | | $ | | | $ | | | |
| Natural gas | | | | | | | | | | | | | | | | | | | |
| Power | | | | | | | | | | | | | | | | | | | |
| | | | |
|
|
| | | () | | () | | () | |
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| | |
| | | () | | | | | |
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| | |
| | | | | $ | () | | $ | () | | $ | () | |
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| | |
|
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|
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| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | | | Level 3 | | Total |
| March 31, 2024 |
| |
| |
| |
| |
| | | | (b) | | |
| |
| |
| |
| |
| |
| |
| | | | | | |
| |
| |
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| | | | | | |
| December 31, 2023 |
| |
| |
| |
| | | | (b) | | |
| |
| |
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| |
| |
| |
| | | | | | |
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|
|
|
|
))
| | | | | | | | |
)))| () | | | $ | () | |
| | | | | | | | |
|
|
|
)))| () | | | $ | () | |
(a)Does not include the impact of the tracker for the difference between the level of pension and postretirement benefit costs (income) incurred by Ameren Missouri under GAAP and the level of such costs included in rates.
NOTE 12 –
% | | | % | | | % | | | % | | | % | | | % | | | Increases (decreases) from: | | | | | | | | | | | | |
| | | | |
Amortization of excess deferred taxes(a) | () | | | () | |
| () | | | () | |
| () | | | () | | |
| | | | |
Renewable and other tax credits(b) | () | | | () | | | () | | | () | | | | | | | | |
| State tax | | | | | | | | | | | | | | | | | | |
| Stock-based compensation | | | | () | | | | | | | | | | | | | | |
| Other depreciation differences | () | | | | | | () | | | | | | | | | | | |
| Other permanent items | () | | | () | | | | | | () | | | | | | () | | |
| Effective income tax rate | | % | | | % | | | % | | () | % | | | % | | | % | |
(a)Reflects the amortization of amounts resulting from the revaluation of deferred income taxes subject to regulatory ratemaking, which are being refunded to customers. Deferred income taxes are revalued when federal or state income tax rates change, and the offset to the revaluation of deferred income taxes subject to regulatory ratemaking is recorded to a regulatory asset or liability.
(b)The benefit of the credits associated with Missouri renewable energy standard compliance is refunded to customers through the RESRAM.
NOTE 13 –
| | $ | | | | $ | | | | | $ | | | | $ | | | | $ | | | | | | | |
|
|
|
)
)
)
| | | | $ | | | $ | | | $ | | |
|
|
|
| $ | | | (a) |
|
)| | | (c) |
|
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| 2023 |
|
|
| | | |
|
| | | |
|
|
(a)There was an number of anti-dilutive performance share units excluded from the earnings per diluted share calculations for the three months ended March 31, 2024 and 2023. The outstanding forward sale agreements as of March 31, 2024 and 2023, were anti-dilutive for the three months ended March 31, 2024 and 2023, and were excluded from the earnings per diluted share calculation as calculated using the treasury stock method. For additional information about our outstanding forward sale agreements, see Note 4 – Long-term Debt and Equity Financings.
NOTE 14 –
| | $ | | | | $ | | | | $ | | | | $ | — | | | $ | — | | | $ | | | |
| Intersegment revenues | | | | | | | | | | | | | — | | | () | | | — | | |
| Net income attributable to Ameren common shareholders | | | | | | | | | | | | (a) | | | | — | | | | | |
| Capital expenditures | | | | | | | | | | | | | | | | | | | | | |
| Three Months 2023: | | | | | | | | | | | | | | |
| External revenues | $ | | | | $ | | | | $ | | | | $ | | | | $ | — | | | $ | — | | | $ | | | |
| Intersegment revenues | | | | | | | | | | | | | — | | | () | | | — | | |
| Net income attributable to Ameren common shareholders | | | | | | | | | | | | (a) | | | | — | | | | | |
| Capital expenditures | | | | | | | | | | | | | | | | | | | | | |
(a)Ameren Transmission earnings reflect an allocation of financing costs from Ameren (parent).
Ameren Illinois
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ameren Illinois Electric Distribution | | Ameren Illinois Natural Gas | | Ameren Illinois Transmission | | Intersegment Eliminations | | Ameren Illinois |
| |
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|
| Ameren | |
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|
)
) )| () | | | $ | | | |
(a)Includes over-recoveries of various riders.
(b)The following table presents increases/(decreases) in revenues from alternative revenue programs and other revenues not from contracts with customers for the three months ended March 31, 2024 and 2023:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ameren Missouri | | Ameren Illinois Electric Distribution | | Ameren Illinois Natural Gas | | Ameren Transmission | | Ameren | |
| | |
| | |
| | |
| | |
| | |
| | |
| Three Months 2024: | | | | | | | | | | |
| Revenues from alternative revenue programs | $ | () | | | $ | | | | $ | | | | $ | | | | $ | | | |
| Other revenues not from contracts with customers | | | | | | | | | | | | | | | |
| Three Months 2023: | | | | | | | | | | |
| Revenues from alternative revenue programs | $ | () | | | $ | | | | $ | | | | $ | | | | $ | | | |
| Other revenues not from contracts with customers | () | | (a) | | | | | | | | | | () | | (a) |
(a)Includes net realized losses on derivative power contracts.
| | $ | | | | $ | | | | $ | | | | $ | | | | | Commercial | | | | | | | | | | | | | | | |
| Industrial | | | | | | | | | | | | | | | |
| Other | () | | (a) | | | | | | | () | | | | | |
Total revenues(b) | $ | | | | $ | | | | $ | | | | $ | () | | | $ | | | |
| Three Months 2023: | | | | | | | | | | |
| Residential | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | |
| Commercial | | | | | | | | | | | | | | | |
| Industrial | | | | | | | | | | | | | | | |
| Other | () | | (a) | | | | | | | () | | | | | |
Total revenues(b) | $ | | | | $ | | | | $ | | | | $ | () | | | $ | | | |
(a)Includes over-recoveries of various riders.
(b)The following table presents increases/(decreases) in revenues from alternative revenue programs and other revenues not from contracts with customers for the Ameren Illinois segments for the three months ended March 31, 2024 and 2023:
| | | | | | | | | | | | | | | | | | | | | | | |
| Ameren Illinois Electric Distribution | | Ameren Illinois Natural Gas | | Ameren Illinois Transmission | | Ameren Illinois |
|
|
|
|
|
|
|
|
| Three Months 2024: | | | | | | | |
| Revenues from alternative revenue programs | $ | | | | $ | | | | $ | | | | $ | | |
| Other revenues not from contracts with customers | | | | | | | | | | | |
|
| Three Months 2023: | | | | | | | |
| Revenues from alternative revenue programs | $ | | | | $ | | | | $ | | | | $ | | |
| Other revenues not from contracts with customers | | | | | | | | | | | |
|
|
| | 1.00 | |
Net income attributable to Ameren common shareholders decreased $3 million, or 2 cents per diluted share, in the three months ended March 31, 2024, compared with the year-ago period. The decrease was due to net income decreases of $15 million, $5 million, and $3 million as activity not reported as part of a segment, primarily at Ameren (parent), Ameren Illinois Electric Distribution, and Ameren Missouri, respectively. These decreases were partially offset by net income increases of $19 million and $1 million at Ameren Illinois Natural Gas and Ameren Transmission, respectively.
Earnings per diluted share were unfavorably affected in the three months ended March 31, 2024, compared to the year-ago period, by:
•a charge recorded by Ameren Missouri, included in other operation and maintenance expenses, related to an increase in the estimated minimum cost of additional mitigation relief associated with NSR and Clean Air Act litigation applicable to the Rush Island Energy Center, see Note 9 - Commitments and Contingencies under Part 1, Item 1, of this report for more information (4 cents per share);
•increased income tax expense not subject to formula rates or riders, primarily due to a decrease in income tax benefits at Ameren (parent) related to stock-based compensation (4 cents per share);
•increased other operations and maintenance expenses not subject to formula rates, riders, or trackers, primarily at Ameren Missouri, excluding a charge related to an increase in the estimated minimum cost of additional mitigation relief discussed above (3 cents per share);
•increased financing costs at Ameren Missouri primarily due to higher long term debt balances and interest rates (3 cents per share);
•lower revenue at Ameren Illinois Electric Distribution due to a lower recognized ROE under the MYRP (2 cents per share);
•increased weighted-average basic common shares outstanding resulting from issuances of common shares as detailed in Note 4 – Long-term Debt and Equity Financings under Part I, Item 1, of this report, and Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of the Form 10-K (2 cents per share); and
•increased taxes other than income taxes, primarily at Ameren Missouri, largely resulting from the absence in 2024 of employee retention tax credits received under the Coronavirus Aid, Relief, and Economic Security Act (1 cent per share).
Earnings per diluted share were favorably affected in the three months ended March 31, 2024, compared to the year-ago period, by:
•increased base rate revenues at Ameren Illinois Natural Gas effective November 28, 2023, pursuant to the November 2023 ICC natural gas rate order, partially offset by increased depreciation and amortization expenses included in base rates (4 cents per share);
•increased base rate revenues at Ameren Missouri effective July 9, 2023, pursuant to the June 2023 MoPSC electric rate order, partially offset by the net effect of amortization of previously deferred depreciation expense under the PISA and RESRAM, financing costs otherwise recoverable under the PISA and RESRAM, a lower base level of expenses included in trackers, and the net recovery for amounts associated with the reduction in sales volumes resulting from MEEIA programs (4 cents per share);
•increased allowance for equity funds used during construction and increased base rate revenues for the inclusion of previously deferred PISA and RESRAM interest charges pursuant to the June 2023 MoPSC electric rate order effective July 9, 2023, partially offset by increased interest charges resulting from lower deferrals related to infrastructure investments associated with the PISA and RESRAM, both at Ameren Missouri (3 cents per share);
•a change in rate design at Ameren Illinois Natural Gas pursuant to the November 2023 ICC natural gas rate order that concentrates more revenues in the winter heating season due to an increase in volumetric rates, which increased earnings for the three months ended March 31, 2024, but is not expected to materially impact full year results (3 cents per share);
•increased rate base investments at Ameren Transmission, which increased earnings in this segment (3 cents per share); and
•increased retail electric sales volumes at Ameren Missouri, excluding the estimated effects of weather and customer energy-efficiency programs, partially offset by lower sales volumes due to milder winter temperatures in 2024 (estimated at 2 cents per share).
The cents per share variances above are presented based on the weighted-average basic common shares outstanding in the three months ended March 31, 2023, and do not reflect the impact of dilution on earnings per share, unless otherwise noted. The amounts above other than variances related to income taxes have been presented net of income taxes using Ameren’s 2024 blended federal and state statutory tax rate of 26%. For additional details regarding the Ameren Companies’ results of operations, including explanations of Operating Revenues for both Electric Revenues and Natural Gas Revenues; Fuel and Purchased Power Expenses; Other Operations and Maintenance Expenses; Depreciation and Amortization Expenses; Taxes Other Than Income Taxes; Other Income, Net; Interest Charges; and Income Taxes, see the major headings below.
Below is Ameren’s table of income statement components by segment for the three months ended March 31, 2024 and 2023:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ameren
Missouri | | Ameren
Illinois
Electric
Distribution | | Ameren
Illinois
Natural Gas | | Ameren Transmission | | Other /
Intersegment
Eliminations | | Ameren |
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| Three Months 2024: | | | | | | | | | | | |
| Electric revenues | $ | 714 | | | $ | 506 | | | $ | — | | | $ | 185 | | | $ | (41) | | | $ | 1,364 | |
| Natural gas revenues | 61 | | | — | | | 391 | | | — | | | — | | | 452 | |
| Fuel and purchased power | (166) | | | (192) | | | — | | | — | | | 30 | | | (328) | |
| Natural gas purchased for resale | (28) | | | — | | | (123) | | | — | | | — | | | (151) | |
| Other operations and maintenance expenses | (254) | | | (136) | | | (58) | | | (19) | | | (3) | | | (470) | |
| Depreciation and amortization expenses | (195) | | | (93) | | | (33) | | | (39) | | | (1) | | | (361) | |
| Taxes other than income taxes | (87) | | | (17) | | | (26) | | | (2) | | | (3) | | | (135) | |
| Operating income (loss) | 45 | | | 68 | | | 151 | | | 125 | | | (18) | | | 371 | |
| Other income, net | 44 | | | 22 | | | 7 | | | 2 | | | 14 | | | 89 | |
| Interest charges | (62) | | | (22) | | | (15) | | | (29) | | | (26) | | | (154) | |
| Income (taxes) benefit | (1) | | | (12) | | | (37) | | | (26) | | | 32 | | | (44) | |
| Net income | 26 | | | 56 | | | 106 | | | 72 | | | 2 | | | 262 | |
Noncontrolling interests – preferred stock dividends | (1) | | | — | | | — | | | — | | | — | | | (1) | |
| Net income attributable to Ameren common shareholders | $ | 25 | | | $ | 56 | | | $ | 106 | | | $ | 72 | | | $ | 2 | | | $ | 261 | |
| Three Months 2023: | | | | | | | | | | | |
| Electric revenues | $ | 841 | | | $ | 624 | | | $ | — | | | $ | 163 | | | $ | (38) | | | $ | 1,590 | |
| Natural gas revenues | 82 | | | — | | | 391 | | | — | | | (1) | | | 472 | |
| Fuel and purchased power | (321) | | | (315) | | | — | | | — | | | 28 | | | (608) | |
| Natural gas purchased for resale | (47) | | | — | | | (161) | | | — | | | — | | | (208) | |
| Other operations and maintenance expenses | (239) | | | (129) | | | (59) | | | (16) | | | (5) | | | (448) | |
| Depreciation and amortization expenses | (176) | | | (84) | | | (26) | | | (33) | | | (1) | | | (320) | |
| Taxes other than income taxes | (80) | | | (18) | | | (23) | | | (2) | | | (4) | | | (127) | |
| Operating income (loss) | 60 | | | 78 | | | 122 | | | 112 | | | (21) | | | 351 | |
| Other income, net | 19 | | | 24 | | | 8 | | | 6 | | | 21 | | | 78 | |
| Interest charges | (51) | | | (21) | | | (13) | | | (22) | | | (20) | | | (127) | |
| Income (taxes) benefit | 1 | | | (20) | | | (30) | | | (25) | | | 37 | | | (37) | |
| Net income | 29 | | | 61 | | | 87 | | | 71 | | | 17 | | | 265 | |
Noncontrolling interests – preferred stock dividends | (1) | | | — | | | — | | | — | | | — | | | (1) | |
| Net income attributable to Ameren common shareholders | $ | 28 | | | $ | 61 | | | $ | 87 | | | $ | 71 | | | $ | 17 | | | $ | 264 | |
Below is Ameren Illinois’ table of income statement components by segment for the three months ended March 31, 2024 and 2023:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ameren
Illinois
Electric
Distribution | | Ameren
Illinois
Natural Gas | | Ameren
Illinois Transmission | | Other /
Intersegment
Eliminations | | Ameren Illinois |
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| Three Months 2024: | | | | | | | | | |
| Electric revenues | $ | 506 | | | $ | — | | | $ | 131 | | | $ | (28) | | | $ | 609 | |
| Natural gas revenues | — | | | 391 | | | — | | | — | | | 391 | |
| Purchased power | (192) | | | — | | | — | | | 28 | | | (164) | |
| Natural gas purchased for resale | — | | | (123) | | | — | | | — | | | (123) | |
| Other operations and maintenance expenses | (136) | | | (58) | | | (16) | | | — | | | (210) | |
| Depreciation and amortization expenses | (93) | | | (33) | | | (27) | | | — | | | (153) | |
| Taxes other than income taxes | (17) | | | (26) | | | (1) | | | — | | | (44) | |
| Operating income | 68 | | | 151 | | | 87 | | | — | | | 306 | |
| Other income, net | 22 | | | 7 | | | 2 | | | — | | | 31 | |
| Interest charges | (22) | | | (15) | | | (18) | | | — | | | (55) | |
| Income taxes | (12) | | | (37) | | | (18) | | | — | | | (67) | |
| |
| |
| Net income attributable to common shareholder | $ | 56 | | | $ | 106 | | | $ | 53 | | | $ | — | | | $ | 215 | |
| Three Months 2023: | | | | | | | | | |
| Electric revenues | $ | 624 | | | $ | — | | | $ | 114 | | | $ | (28) | | | $ | 710 | |
| Natural gas revenues | — | | | 391 | | | — | | | — | | | 391 | |
| Purchased power | (315) | | | — | | | — | | | 28 | | | (287) | |
| Natural gas purchased for resale | — | | | (161) | | | — | | | — | | | (161) | |
| Other operations and maintenance expenses | (129) | | | (59) | | | (14) | | | — | | | (202) | |
| Depreciation and amortization expenses | (84) | | | (26) | | | (23) | | | — | | | (133) | |
| Taxes other than income taxes | (18) | | | (23) | | | (1) | | | — | | | (42) | |
| Operating income | 78 | | | 122 | | | 76 | | | — | | | 276 | |
| Other income, net | 24 | | | 8 | | | 5 | | | — | | | 37 | |
| Interest charges | (21) | | | (13) | | | (13) | | | — | | | (47) | |
| Income taxes | (20) | | | (30) | | | (18) | | | — | | | (68) | |
| |
| |
| Net income attributable to common shareholder | $ | 61 | | | $ | 87 | | | $ | 50 | | | $ | — | | | $ | 198 | |
Operating Revenues
The following table presents the increases (decreases) by Ameren segment for electric and natural gas revenues, for the three months ended March 31, 2024, compared with the year-ago period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months | Ameren Missouri | | Ameren Illinois
Electric Distribution | | Ameren Illinois
Natural Gas | | Ameren Transmission(a) | | Other /Intersegment Eliminations | | Ameren | |
| Electric revenue change: | | | | | | | | | | | | |
Base rates (estimate)(b) | $ | 29 | | | $ | 8 | | | $ | — | | | $ | 19 | | | $ | — | | | $ | 56 | | |
Effect of weather (estimate)(c) | (6) | | | — | | | — | | | — | | | — | | | (6) | | |
| Sales volumes and changes in customer usage patterns (excluding the estimated effects of weather and MEEIA) | 16 | | | — | | | — | | | — | | | — | | | 16 | | |
| | | | | | | | |
| | | | | | | | |
| Off-system sales, capacity, and FAC revenues, net | (151) | | | — | | | — | | | — | | | — | | | (151) | | |
| Ameren Illinois energy-efficiency program investment revenues | — | | | 4 | | | — | | | — | | | — | | | 4 | | |
Electric deferred income tax adjustment(d) | — | | | (5) | | | — | | | — | | | — | | | (5) | | |
| Other | (3) | | | (2) | | | — | | | 3 | | | (1) | | | (3) | | |
Cost recovery mechanisms – offset in fuel and purchased power(e) | (17) | | | (123) | | | — | | | — | | | (2) | | | (142) | | |
Other cost recovery mechanisms(f) | 5 | | | — | | | — | | | — | | | — | | | 5 | | |
| Total electric revenue change | $ | (127) | | | $ | (118) | | | $ | — | | | $ | 22 | | | $ | (3) | | | $ | (226) | | |
| Natural gas revenue change: | | | | | | | | | | | | |
| Base rates (estimate) | $ | — | | | $ | — | | | $ | 24 | | | $ | — | | | $ | — | | | $ | 24 | | |
| Change in rate design (estimate) | — | | | — | | | 11 | | | — | | | — | | | 11 | | |
Effect of weather (estimate)(c) | 1 | | | — | | | — | | | — | | | — | | | 1 | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Other | — | | | — | | | 3 | | | — | | | 1 | | | 4 | | |
Cost recovery mechanisms – offset in natural gas purchased for resale(e) | (21) | | | — | | | (38) | | | — | | | — | | | (59) | | |
Other cost recovery mechanisms(f) | (1) | | | — | | | — | | | — | | | — | | | (1) | | |
| Total natural gas revenue change | $ | (21) | | | $ | — | | | $ | — | | | $ | — | | | $ | 1 | | | $ | (20) | | |
| | | | | | | | |
(a)Includes an increase in transmission revenues of $17 million at Ameren Illinois for the three months ended March 31, 2024, compared with the year-ago period.
(b)For Ameren Illinois Electric Distribution and Ameren Transmission, base rates include increases or decreases in operating revenues related to the revenue requirement reconciliation adjustment under formula rates. For Ameren Missouri, base rates exclude an increase for the recovery of lost electric revenue, less the associated fuel and purchased power expenses, resulting from the MEEIA customer energy-efficiency programs and a decrease in base rates for RESRAM. These changes in Ameren Missouri base rates are included in the “Sales volumes and changes in customer usage patterns (excluding the estimated effects of weather and MEEIA)” and “Cost recovery mechanisms - offset in fuel and purchased power” line items, respectively.
(c)Represents the estimated variation resulting primarily from changes in cooling and heating degree-days on electric and natural gas demand compared with the year-ago period; this variation is based on temperature readings from the National Oceanic and Atmospheric Administration weather stations at local airports in our service territories.
(d)The electric deferred income tax adjustment relates to the remaining balance of certain excess deferred income taxes that will be amortized through 2025. Offsetting expense increases or decreases are reflected within the "Income Taxes" section of the statement of income. This item has no overall impact on earnings.
(e)Electric and natural gas revenue changes are offset by corresponding changes in “Fuel and purchased power” and “Natural gas purchased for resale” on the statement of income. Activity in Other/Intersegment Eliminations represents the elimination of related-party transactions between Ameren Missouri, Ameren Illinois, and ATXI, as well as Ameren Transmission revenue from transmission services provided to Ameren Illinois Electric Distribution. See Note 8 – Related-party Transactions and Note 14 – Segment Information under Part I, Item 1, of this report for additional information on intersegment eliminations. These items have no overall impact on earnings.
(f)Offsetting expense increases or decreases are reflected in “Other operations and maintenance,” “Depreciation and amortization,” or in “Taxes other than income taxes,” within the “Operating Expenses” section of the statement of income. These items have no overall impact on earnings.
Electric Revenues
Ameren
Ameren’s electric revenues decreased $226 million, or 14%, for the three months ended March 31, 2024, compared with the year-ago period, primarily due to decreased revenues at Ameren Missouri and Ameren Illinois Electric Distribution, partially offset by increased revenues at Ameren Transmission, as discussed below.
Ameren Transmission
Ameren Transmission’s electric revenues increased $22 million, or 13%, for the three months ended March 31, 2024, compared with the year-ago period. Revenues were favorably affected by higher recoverable expenses (+$10 million), increased capital investment
(+$9 million), as evidenced by a 14% increase in rate base used to calculate the revenue requirement, and increased facility rental revenues (+$3 million) related to ATXI’s transmission operations control center, which was placed in service in December 2023. ATXI provides affiliates with access to this facility. Rental revenues associated with this facility are affiliate transactions and eliminated in consolidation for Ameren’s consolidated financial statements. See Note 8 – Related-party Transactions under Part I, Item 1, of this report for additional information.
Ameren Missouri
Ameren Missouri’s electric revenues decreased $127 million, or 15%, for the three months ended March 31, 2024, compared with the year-ago period.
The following items decreased Ameren Missouri’s electric revenues between periods:
•“Off-system sales, capacity and FAC revenues, net” decreased $151 million due to lower capacity prices, (-$156 million) which were set by the annual MISO auction in April 2023 and became effective June 2023, partially offset by higher off-system sales revenue
(+$5 million). Ameren Missouri’s 5% exposure to net energy cost variances under the FAC is included within “Off-system sales, capacity, and FAC revenues, net” and “Energy costs (excluding the estimated effect of weather)” in fuel and purchased power.
•Revenues associated with “Cost recovery mechanisms – offset in fuel and purchased power” decreased $17 million due to decreased revenue related to the amortization of costs previously deferred under the FAC that were reflected in customer rates. The changes to “Cost recovery mechanisms - offset in fuel and purchased power” are fully offset by “Cost recovery mechanisms - offset in electric revenue” in fuel and purchased power.
•Winter temperatures were warmer as heating degree days decreased 4%, which decreased revenues an estimated $6 million.
The following items increased Ameren Missouri’s electric revenues between periods:
•Higher electric base rates, resulting from the June 2023 MoPSC electric rate order effective July 9, 2023, increased revenues an estimated $29 million.
•Excluding the estimated effects of weather and the MEEIA customer energy-efficiency programs, electric revenues increased an estimated $16 million, due to an increase in retail sales volumes, which were, in part, favorably affected by an additional day in 2024 as a result of the leap year.
•Revenues associated with other cost recovery mechanisms increased $5 million, primarily due to an increase in RESRAM revenues and an increase in excise taxes due to an increase in retail sales revenue.
Ameren Illinois
Ameren Illinois’ electric revenues decreased $101 million, or 14%, for the three months ended March 31, 2024, compared with the year-ago period, driven by decreased revenues at Ameren Illinois Electric Distribution, partially offset by increased revenues at Ameren Illinois Transmission.
Ameren Illinois Electric Distribution
Ameren Illinois Electric Distribution’s revenues decreased $118 million, or 19%, for the three months ended March 31, 2024, compared with the year-ago period.
The following items decreased Ameren Illinois Electric Distribution’s revenues between periods:
•Revenues associated with “Cost recovery mechanisms – offset in fuel and purchased power” decreased $123 million due to decreased recovery of purchased power expenses. The decrease in electric revenues is fully offset by a decrease in purchased power expenses under cost recovery mechanisms for purchased power, as discussed below.
•Pursuant to an ICC order, revenues decreased $5 million due to changes in the amortization rate for certain excess deferred income taxes.
The following items increased Ameren Illinois Electric Distribution’s revenues between periods:
•Base rates increased revenues by $8 million due to higher recoverable non-purchased power expenses (+$13 million), partially offset by a lower recognized ROE (-$5 million). The MYRP utilizes a fixed ROE approved by the ICC of 8.72%, with adjustments for any performance incentives and penalties, while the IEIMA formula-based ROE was based on the annual average of the monthly yields of the 30-year United States Treasury bonds plus 580 basis points (estimated at 9.61% for the three months ended March 31, 2023).
•Revenues increased $4 million due to the recovery of and return on increased energy-efficiency program investments under performance-based formula ratemaking.
Ameren Illinois Transmission
Ameren Illinois Transmission’s revenues increased $17 million, or 15%, for the three months ended March 31, 2024, compared with the year-ago period. Base rate revenues were favorably affected by higher recoverable expenses (+$11 million) and increased capital investment (+$6 million), as evidenced by a 15% increase in rate base used to calculate the revenue requirement.
Natural Gas Revenues
Ameren
Ameren’s natural gas revenues decreased $20 million, or 4%, for the three months ended March 31, 2024, compared with the year-ago period, primarily due to decreased revenues at Ameren Missouri, as discussed below.
Ameren Missouri
Ameren Missouri’s natural gas revenues decreased $21 million, or 26%, for the three months ended March 31, 2024, compared with the year-ago period. Revenues associated with “Cost recovery mechanisms – offset in natural gas purchased for resale” decreased $21 million due to lower commodity prices and the absence of amortization of natural gas costs deferred under the PGA related to the extremely cold weather in mid-February 2021. The decrease in natural gas revenues under the PGA are fully offset by a decrease in natural gas purchased for resale expenses.
Ameren Illinois Natural Gas
Ameren Illinois Natural Gas’ revenues were comparable between periods. “Cost recovery mechanisms – offset in natural gas purchased for resale” decreased revenues $38 million for the three months ended March 31, 2024, due to lower collection of natural gas costs previously deferred under the PGA. The decrease in natural gas revenues under the PGA are fully offset by a decrease in natural gas purchased for resale expenses.
The following items increased Ameren Illinois Natural Gas’ revenues between periods:
•Revenues increased an estimated $24 million due to higher natural gas base rates as a result of the November 2023 natural gas rate order.
•Revenues increased an estimated $11 million due to a change in rate design as a result of the November 2023 natural gas rate order. This change in rate design concentrates more revenues in the winter heating season due to an increase in volumetric rates and a decrease in fixed customer rates. As such, the change is not expected to materially affect annual earnings comparisons.
Fuel and Purchased Power
The following table presents the increases (decreases) by Ameren segment for fuel and purchased power for the three months ended March 31, 2024, compared with the year-ago period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months | Ameren Missouri | | Ameren Illinois
Electric Distribution | | Ameren Illinois
Natural Gas | | Ameren Transmission | | Other /Intersegment Eliminations | | Ameren |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fuel and purchased power change: | | | | | | | | | | | | |
| Energy costs (excluding the estimated effect of weather) | $ | (148) | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (148) | | |
Effect of weather (estimate)(a) | (1) | | | — | | | — | | | — | | | — | | | (1) | | |
| Effect of higher net energy costs included in base rates | 11 | | | — | | | — | | | — | | | — | | | 11 | | |
| | | | | | | | |
Cost recovery mechanisms – offset in electric revenue(b) | (17) | | | (123) | | | — | | | — | | | (2) | | | (142) | | |
| Total fuel and purchased power change | $ | (155) | | | $ | (123) | | | $ | — | | | $ | — | | | $ | (2) | | | $ | (280) | | |
(a)Represents the estimated variation resulting primarily from changes in cooling and heating degree-days on electric demand compared with the year-ago period; this variation is based on temperature readings from the National Oceanic and Atmospheric Administration weather stations at local airports in our service territories.
(b)“Cost recovery mechanisms — offset in electric revenue” changes are offset by corresponding changes in “Cost recovery mechanisms — offset in fuel and purchased power” in electric revenues. Activity in Other/Intersegment Eliminations represents the elimination of related-party transactions between Ameren Missouri, Ameren Illinois, and ATXI, as well as Ameren Transmission revenue from transmission services provided to Ameren Illinois Electric Distribution. See Note 8 – Related-party Transactions and Note 14 – Segment Information under Part I, Item 1, of this report for additional information on intersegment eliminations. These items have no overall impact on earnings.
Ameren
Ameren Missouri and Ameren Illinois are generally allowed to pass on to customers prudently incurred costs for fuel and purchased power. Ameren’s electric fuel and purchased power expenses decreased $280 million, or 46%, for the three months ended March 31, 2024, compared with the year-ago period, primarily due to decreased fuel and purchased power expenses at Ameren Missouri and Ameren Illinois Electric Distribution, as discussed below.
Ameren Missouri
Ameren Missouri’s fuel and purchased power expenses decreased $155 million, or 48%, for the three months ended March 31, 2024, compared with the year-ago period.
The following items decreased Ameren Missouri’s fuel and purchased power expense:
•Energy costs decreased $148 million due to decreased capacity prices (-$149 million), which were set by the annual MISO auction in April 2023 and became effective June 2023, and lower fuel costs (-$7 million), partially offset by increased purchased power expense
(+$5 million) and decreased deferrals under the FAC (+$3 million). Ameren Missouri’s 5% exposure to net energy cost variances under the FAC is included within “Energy costs (excluding the estimated effect of weather)” and “Off-system sales, capacity, and FAC revenues, net” in electric revenues.
•“Cost recovery mechanisms — offset in electric revenue” decreased $17 million due to decreased amortization of costs previously deferred under the FAC. The changes to “Cost recovery mechanisms - offset in electric revenue” are fully offset by “Cost recovery mechanisms - offset in fuel and purchased power” in electric revenues.
Ameren Missouri’s fuel and purchased power expenses increased $11 million due to the effect of higher net energy costs included in base rates as a result of the June 2023 MoPSC electric rate order.
Ameren Illinois Electric Distribution
Ameren Illinois Electric Distribution’s purchased power expenses decreased $123 million, or 39%, for the three months ended March 31, 2024, compared with the year-ago period, primarily due to decreased energy prices (-$57 million), which largely reflect the results of IPA procurement events, decreased capacity prices (-$39 million), which were set by the annual MISO auction in April 2023 and became effective in June 2023, and lower volumes (-$28 million) primarily due to residential and small commercial customers switching from Ameren Illinois’ supplied power to alternative retail electric suppliers. The changes to “Cost recovery mechanisms - offset in electric revenue” are fully offset by “Cost recovery mechanisms - offset in fuel and purchased power” in electric revenues.
Natural Gas Purchased for Resale
The following table presents the increases (decreases) by Ameren segment for natural gas purchased for resale, for the three months ended March 31, 2024, compared with the year-ago period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months | Ameren Missouri | | Ameren Illinois
Electric Distribution | | Ameren Illinois
Natural Gas | | Ameren Transmission | | Other /Intersegment Eliminations | | Ameren | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Natural gas purchased for resale change: | | | | | | | | | | | | |
Effect of weather (estimate)(a) | $ | 2 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 2 | | |
Cost recovery mechanisms – offset in natural gas revenue(b) | (21) | | | — | | | (38) | | | — | | | — | | | (59) | | |
| Total natural gas purchased for resale change | $ | (19) | | | $ | — | | | $ | (38) | | | $ | — | | | $ | — | | | $ | (57) | | |
| % | | 26 | % |
| (a)Estimate of the annual effective income tax rate adjusted to reflect the tax effect of items discrete to the three months ended March 31, 2024 and 2023.
See Note 12 – Income Taxes under Part I, Item 1, of this report for a reconciliation of the federal statutory corporate income tax rate to the effective income tax rate for the Ameren Companies.
The effective tax rate was lower at Ameren Illinois Electric Distribution in the three months ended March 31, 2024, compared with the year-ago period, primarily because of an increase in excess deferred tax amortization pursuant to an ICC order which was offset by a corresponding decrease in revenues.
LIQUIDITY AND CAPITAL RESOURCES
Collections from our tariff-based revenues are our principal source of cash provided by operating activities. A diversified retail customer mix, primarily consisting of rate-regulated residential, commercial, and industrial customers, provides us with a reasonably predictable source of cash. In addition to using cash provided by operating activities, we use available cash, drawings under committed credit agreements, commercial paper issuances, and/or, in the case of Ameren Missouri and Ameren Illinois, short-term affiliate borrowings to support normal operations and temporary capital requirements. We may reduce our short-term borrowings with cash provided by operations or, at our discretion, with long-term borrowings, or, in the case of Ameren Missouri and Ameren Illinois, with capital contributions from Ameren (parent). As of March 31, 2024, there have been no material changes other than in the ordinary course of business related to cash requirements arising from these long-term commitments provided in Item 7 of the Form 10-K.
We expect to make significant capital expenditures over the next five years, supported by a combination of long-term debt and equity, as we invest in our electric and natural gas utility infrastructure to support overall system reliability, grid modernization, renewable energy target requirements, environmental compliance, and other improvements. For additional information about our long-term debt outstanding, including maturities due within one year, and the applicable interest rates, see Note 5 – Long-term Debt and Equity Financings under Part II, Item 8 of the Form 10-K and Note 4 – Long-term Debt and Equity Financings under Part I, Item 1, of this report. As part of its funding plan for capital expenditures, Ameren is using newly issued shares of common stock to satisfy requirements under the DRPlus and employee benefit plans and expects to continue to do so through at least 2028. Additionally, Ameren has an ATM program under which Ameren may offer and sell from time to time common stock, which includes the ability to enter into forward sales agreements, subject to market conditions and other factors. There were no shares issued under the ATM program during the three months ended March 31, 2024. As of March 31, 2024, Ameren had multiple forward sale agreements that could be settled under the ATM program with various counterparties relating to 2.9 million shares of common stock. Ameren expects to settle approximately $230 million of the forward sale agreements with physical delivery of 2.9 million shares of common stock by December 31, 2024. Including issuances under the DRPlus and employee benefit plans, Ameren plans to issue approximately $300 million of equity in 2024 and approximately $600 million of equity each year from 2025 to 2028. As of March 31, 2024, Ameren had approximately $770 million of common stock available for sale under the ATM program, which takes into account the forward sale agreements in effect as of March 31, 2024. Ameren expects its equity to total capitalization to support solid investment-grade credit ratings. See Long-term Debt and Equity below and Note 4 – Long-term Debt and Equity Financings under Part I, Item 1, of this report for additional information on the ATM program, including the forward sale agreements under the ATM program relating to common stock.
The following table presents net cash provided by (used in) operating, investing, and financing activities for the three months ended March 31, 2024 and 2023:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Cash Provided By
Operating Activities | | Net Cash Used In
Investing Activities | | Net Cash Provided By (Used In)
Financing Activities |
| 2024 | | 2023 | | Variance | | 2024 | | 2023 | | Variance | | 2024 | | 2023 | | Variance |
| Ameren | $ | 492 | | (a) | $ | 496 | | (a) | $ | (4) | | | $ | (906) | | | $ | (964) | | | $ | 58 | | | $ | 497 | | | $ | 489 | | | $ | 8 | |
| | | | | | | | | |
|
|
|
| 1,400 | |
| |
| |
|
| |
|
|
| |
| |
|
| |
| |
| 1,812 | |
(a)Does not include Ameren’s forward equity sale agreements. See Note 4 – Long-term Debt and Equity Financings under Part I, Item 1, of this report for additional information.
The Credit Agreements, among other things, provide $2.6 billion of credit until maturity in December 2027. See Note 3 – Short-term Debt and Liquidity under Part I, Item 1, of this report for additional information on the Credit Agreements. During the three months ended March 31, 2024, Ameren Missouri and Ameren Illinois each issued commercial paper. Borrowings under the Credit Agreements and commercial paper issuances are based upon available interest rates at the time of the borrowing or issuance.
Ameren has a money pool agreement with and among its utility subsidiaries to coordinate and to provide for certain short-term cash and working capital requirements. As short-term capital needs arise, and based on availability of funding sources, Ameren Missouri and Ameren Illinois will access funds from the utility money pool, the Credit Agreements, or the commercial paper programs depending on which option has the lowest interest rates.
See Note 3 – Short-term Debt and Liquidity under Part I, Item 1, of this report for additional information on credit agreements, commercial paper issuances, Ameren’s money pool agreements and related borrowings, and relevant interest rates.
The issuance of short-term debt securities by Ameren’s utility subsidiaries is subject to FERC approval under the Federal Power Act. In January 2023, the FERC issued orders authorizing Ameren Missouri, Ameren Illinois, and ATXI to issue up to $1 billion, $1 billion, and $300 million, respectively, of short-term debt securities through January 2025.
The Ameren Companies continually evaluate the adequacy and appropriateness of their liquidity arrangements for changing business conditions. When business conditions warrant, changes may be made to existing credit agreements or to other borrowing arrangements, or other arrangements may be made.
Long-term Debt and Equity
The following table presents issuances (net of any issuance premiums or discounts) of long-term debt and equity, as well as maturities of long-term debt for the three months ended March 31, 2024 and 2023:
| | | | | | | | | | | | | | | | | | | | |
| Month Issued, Redeemed, or Matured | | 2024 | | 2023 | |
| Issuances of Long-term Debt | | | | | | |
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| Ameren Missouri: | | | | | | |
| 5.25% First mortgage bonds due 2054 | January | | $ | 347 | | | $ | — | | |
| 5.45% First mortgage bonds due 2053 | March | | — | | | 499 | | |
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| Total Ameren long-term debt issuances | | | $ | 347 | | | $ | 499 | | |
| Issuances of Common Stock | | | | | | |
| Ameren: | | | | | | |
DRPlus and 401(k)(a)(b) | Various | | $ | 10 | | | $ | 5 | | |
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Total Ameren common stock issuances(c) | | | $ | 10 | | | $ | 5 | | |
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| Maturities of Long-term Debt | | | | | | |
| Ameren Missouri: | | | | | | |
| Audrain County agreement (Audrain County CT) due 2023 | January | | $ | — | | | $ | 240 | | (d) |
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| Total Ameren long-term debt maturities | | | $ | — | | | $ | 240 | | |
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(a)Ameren issued a total of 0.1 million and 0.1 million shares of common stock under its DRPlus and 401(k) plan for the three months ended March 31, 2024 and 2023, respectively.
(b)Excludes a $7 million and $7 million receivable at March 31, 2024 and 2023, respectively.
(c)Excludes 0.2 million and 0.5 million shares of common stock valued at $16 million and $37 million issued for no cash consideration in connection with stock-based compensation for the three months ended March 31, 2024 and 2023, respectively.
(d)In January 2023, Ameren Missouri and Audrain County mutually agreed to terminate a financing obligation agreement related to the CT energy center in Audrain County, which was scheduled to expire in December 2023. No cash was exchanged in connection with the termination of the agreement as the $240 million principal amount of the financing obligation due from Ameren Missouri was equal to the amount of bond service payments due to Ameren Missouri.
In April 2024, Ameren Missouri issued $500 million of 5.20% first mortgage bonds due April 2034, with interest payable semiannually on April 1 and October 1 of each year, beginning October 1, 2024. Net proceeds from this issuance were used for capital expenditures and to repay short-term debt.
In April 2024, $350 million principal amount of Ameren Missouri’s 3.50% senior secured notes matured and were repaid with cash on hand.
In April 2024, Ameren Missouri received capital contributions totaling $350 million from Ameren (parent).
See Note 4 – Long-term Debt and Equity Financings under Part I, Item 1, of this report for additional information, including proceeds from issuances of long-term debt, the use of those proceeds, Ameren’s forward equity sale agreements, and the ATM program.
Indebtedness Provisions and Other Covenants
At March 31, 2024, the Ameren Companies were in compliance with the provisions and covenants contained in their credit agreements, indentures, and articles of incorporation, as applicable, and ATXI was in compliance with the provisions and covenants contained in its note purchase agreements. See Note 3 – Short-term Debt and Liquidity under Part I, Item 1, of this report and Note 4 – Short-term Debt and Liquidity and Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of the Form 10-K for a discussion of provisions, applicable cross-default provisions, and covenants contained in our credit agreements, in ATXI’s note purchase agreements, and in certain of the Ameren Companies’ indentures and articles of incorporation.
We consider access to short-term and long-term capital and credit markets to be a significant source of funding for capital requirements not satisfied by cash provided by our operating activities. Inability to raise capital on reasonable terms, particularly during times of uncertainty in the capital and credit markets, could negatively affect our ability to maintain and expand our businesses. After assessing their respective current operating performance, liquidity, and credit ratings (see Credit Ratings below), Ameren, Ameren Missouri, and Ameren Illinois each believes that it will continue to have access to the capital and credit markets on reasonable terms. However, events beyond Ameren’s, Ameren Missouri’s, and Ameren Illinois’ control may create uncertainty in the capital and credit markets or make access to the capital and credit markets uncertain or limited. Such events could increase our cost of capital and adversely affect our ability to access the capital and credit markets.
Dividends
The amount and timing of dividends payable on Ameren’s common stock are within the sole discretion of Ameren’s board of directors. Ameren’s board of directors has not set specific targets or payout parameters when declaring common stock dividends, but it considers various factors, including Ameren’s overall payout ratio, payout ratios of our peers, projected cash flow and potential future cash flow requirements, historical earnings and cash flow, projected earnings, impacts of regulatory orders or legislation, and other key business considerations. Ameren expects its dividend payout ratio to be between 55% and 65% of annual earnings over the next few years.
See Note 4 – Short-term Debt and Liquidity and Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of the Form 10-K for additional discussion of covenants and provisions contained in certain of the Ameren Companies’ financial agreements and articles of incorporation that would restrict the Ameren Companies’ payment of dividends in certain circumstances. At March 31, 2024, none of these circumstances existed at Ameren, Ameren Missouri, or Ameren Illinois and, as a result, these companies were not restricted from paying dividends.
The following table presents common stock dividends declared and paid by Ameren Corporation to its common shareholders and by Ameren subsidiaries to their parent, Ameren Corporation, for the three months ended March 31, 2024 and 2023:
| | | | | | | | | | | |
| Three Months |
| 2024 | | 2023 |
| Ameren | $ | 178 | | | $ | 165 | |
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| Instruments Defining Rights of Security Holders, Including Indentures |
| 4.1 | | Ameren Ameren Missouri | | | | January 9, 2024 Form 8-K, Exhibit 4.2, File No. 1-14756 |
| 4.2 | | Ameren Ameren Missouri | | | | April 4, 2024 Form 8-K, Exhibit 4.2, File No. 1-14756 |
| Rule 13a-14(a) / 15d-14(a) Certifications |
| 31.1 | | Ameren | | | | |
| 31.2 | | Ameren | | | | |
| 31.3 | | Ameren Missouri | | | | |
| 31.4 | | Ameren Missouri | | | | |
| 31.5 | | Ameren Illinois | | | | |
| 31.6 | | Ameren Illinois | | | | |
| Section 1350 Certifications |
| 32.1 | | Ameren | | | | |
| 32.2 | | Ameren Missouri | | | | |
| 32.3 | | Ameren Illinois | | | | |
| Interactive Data Files |
| 101.INS | | Ameren Companies | | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | | |
| 101.SCH | | Ameren Companies | | Inline XBRL Taxonomy Extension Schema Document | | |
| 101.CAL | | Ameren Companies | | Inline XBRL Taxonomy Extension Calculation Linkbase Document | | |
| 101.LAB | | Ameren Companies | | Inline XBRL Taxonomy Extension Label Linkbase Document | | |
| 101.PRE | | Ameren Companies | | Inline XBRL Taxonomy Extension Presentation Linkbase Document | | |
| 101.DEF | | Ameren Companies | | Inline XBRL Taxonomy Extension Definition Document | | |
| 104 | | Ameren Companies | | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | | |
The file number references for the Ameren Companies’ filings with the SEC are: Ameren, 1-14756; Ameren Missouri, 1-2967; and Ameren Illinois, 1-3672.
Each registrant hereby undertakes to furnish to the SEC upon request a copy of any long-term debt instrument not listed above that such registrant has not filed as an exhibit pursuant to the exemption provided by Item 601(b)(4)(iii)(A) of Regulation S-K.
SIGNATURES
Pursuant to the requirements of the Exchange Act, each registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature for each undersigned company shall be deemed to relate only to matters having reference to such company or its subsidiaries.
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AMEREN CORPORATION
(Registrant) |
|
| /s/ Michael L. Moehn |
Michael L. Moehn
Senior Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
|
|
UNION ELECTRIC COMPANY
(Registrant) |
|
| /s/ Michael L. Moehn |
Michael L. Moehn
Senior Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
|
|
AMEREN ILLINOIS COMPANY
(Registrant) |
|
| /s/ Michael L. Moehn |
Michael L. Moehn
Senior Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
Date: May 6, 2024
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