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What changed in Ameren's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Ameren's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+666 added−676 removedSource: 10-K (2024-02-29) vs 10-K (2023-02-22)

Top changes in Ameren's 2023 10-K

666 paragraphs added · 676 removed · 477 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

83 edited+11 added−12 removed62 unchanged
Biggest changeThe preferred approach includes, among other things, the following: • the continued implementation of customer energy-efficiency programs; • expanding renewable sources by adding 2,800 MWs of renewable generation by 2030 and a total of 4,700 MWs of renewable generation by 2040, representing investment opportunities of $7.5 billion, inclusive of the 350 MWs of solar generation projects discussed in Note 2 – Rates and Regulatory Matters under Part II, Item 8, of this report; • adding 800 MWs of battery storage by 2040, representing investment opportunities of $650 million; • adding 1,200 MWs of natural gas-fired combined cycle generation by 2031, representing an investment opportunity of $1.7 billion, with plans to switch to hydrogen fuel and/or blend hydrogen fuel with natural gas and install carbon capture technology if these technologies become commercially available at a reasonable cost; • adding 1,200 MWs of additional clean dispatchable generation by 2043; • the expectation that Ameren Missouri will seek and receive NRC approval for an extension of the operating license for the Callaway Energy Center beyond its current 2044 expiration date; • extending the retirement date of the coal-fired Sioux Energy Center from 2028 to 2030 to ensure reliability during the transition to clean energy generation, which is subject to the approval of a change in the asset’s depreciable life by the MoPSC in Ameren Missouri’s 2022 electric service regulatory rate review; • accelerating the retirement date of the Rush Island coal-fired energy center to 2025; • retiring the remaining coal-fired energy centers as they reach the end of their useful lives; • accelerating the retirement date of the Venice natural gas-fired energy center to 2029; and • retiring Ameren Missouri’s other natural gas-fired energy centers in Illinois by 2040.
Biggest changeThe preferred plan includes, among other things, the following: • adding an 800-MW natural gas-fired simple-cycle energy center by 2027 and an additional 1,200-MW natural gas-fired combined-cycle energy center by 2033, representing investment opportunities of $0.8 billion and $1.7 billion, respectively; • adding 2,800 MWs of renewable generation by 2030, which includes the 900 MWs of solar generation projects discussed in Note 2 – Rate and Regulatory Matters under Part II, Item 8, of this report, and an additional 1,900 MWs by 2036, representing investment opportunities of $5.3 billion and $4.1 billion, respectively; • adding 400 MWs of battery storage by 2030 and an additional 400 MWs by 2035, representing investment opportunities of $0.6 billion and $0.7 billion, respectively; • adding 1,200 MWs of other clean dispatchable generation resources by 2040 and an additional 1,200 MWs by 2043; • retiring all of Ameren Missouri’s coal-fired energy centers by 2042; • accelerating the retirement date of the Rush Island coal-fired energy center from 2025 to 2024; • extending the retirement date of the Sioux coal-fired energy center from 2030 to 2032 to ensure reliability during the transition to clean energy generation, which is subject to the approval of a change in depreciable lives of the energy center’s assets by the MoPSC; • retiring 1,800 MWs of Ameren Missouri’s natural gas-fired energy centers by 2040 to comply with Illinois law; • the continued implementation of customer energy-efficiency and demand response programs; and • the expectation that Ameren Missouri will seek and receive NRC approval for an extension of the operating license for the Callaway Energy Center beyond its current 2044 expiration date.
Ameren Illinois State law requires Ameren Illinois to offer customer energy-efficiency programs, and imposes electric energy-efficiency savings goals and a maximum annual amount of investment in electric energy-efficiency programs, which is approximately $120 million annually through 2029 and may increase by up to approximately $30 million from 2026 to 2029 depending on the election of certain customers to participate in the programs.
Ameren Illinois Illinois law requires Ameren Illinois to offer customer energy-efficiency programs, and imposes electric energy-efficiency savings goals and a maximum annual amount of investment in electric energy-efficiency programs, which is approximately $120 million annually through 2029 and may increase by up to approximately $30 million from 2026 to 2029 depending on the election of certain customers to participate in the programs.
HUMAN CAPITAL MANAGEMENT The execution of Ameren’s core strategy to invest in rate-regulated energy infrastructure, enhance regulatory frameworks and advocate for responsible policies, and optimize operating performance to capitalize on opportunities to benefit our customers, our shareholders, and the environment is driven by the capabilities and engagement of our workforce.
HUMAN CAPITAL MANAGEMENT The execution of Ameren’s core strategy to invest in rate-regulated energy infrastructure, enhance regulatory frameworks and advocate for responsible policies, and optimize operating performance to capitalize on opportunities to benefit our customers, communities, shareholders, and the environment is driven by the capabilities and engagement of our workforce.
Ameren Missouri and Ameren Illinois primarily use Panhandle Eastern Pipe Line Company, Trunkline Gas Company, Natural Gas Pipeline Company of America, Mississippi River Transmission Corporation, Northern Border Pipeline Company, and Texas Eastern Transmission Corporation interstate pipeline systems to transport natural gas to their systems.
Ameren Missouri and Ameren Illinois primarily use Panhandle Eastern Pipe Line Company, Trunkline Gas Company, Natural Gas Pipeline Company of America, Mississippi River Transmission Corporation, Northern Border Pipeline Company, MoGas Pipeline, and Texas Eastern Transmission Corporation interstate pipeline systems to transport natural gas to their systems.
For information regarding the percentages of Ameren Missouri’s projected required supply of coal and coal transportation that are price-hedged through 2027, see Commodity Price Risk under Part II, Item 7A, of this report. About 97% of Ameren Missouri’s coal is purchased from the Powder River Basin in Wyoming, which has a limited number of suppliers.
For information regarding the percentages of Ameren Missouri’s projected required supply of coal and coal transportation that are price-hedged through 2028, see Commodity Price Risk under Part II, Item 7A, of this report. About 97% of Ameren Missouri’s coal is purchased from the Powder River Basin in Wyoming, which has a limited number of suppliers.
The Ameren Companies also make available free of charge through Ameren’s website the charters of Ameren’s board of directors’ Audit and Risk Committee, Human Resources Committee, Finance Committee, Nominating and Corporate Governance Committee, and Nuclear, Operations and Environmental Sustainability Committee; the corporate governance guidelines; a policy regarding communications to the board of directors; a policy and procedures document with respect to related-person transactions; a code of ethics applicable to all directors, officers and employees; a supplemental code of ethics for principal executive and senior financial officers; and a director nomination policy that applies to the Ameren Companies.
The Ameren Companies also make available free of charge through Ameren’s website the charters of Ameren’s board of directors’ Audit and Risk Committee, Cybersecurity and Digital Technology Committee, Finance Committee, Human Resources Committee, Nominating and Corporate Governance Committee, and Nuclear, Operations and Environmental Sustainability Committee; the corporate governance guidelines; a policy regarding communications to the board of directors; a policy and procedures document with respect to related-person transactions; a code of ethics applicable to all directors, officers and employees; a supplemental code of ethics for principal executive and senior financial officers; and a director nomination policy that applies to the Ameren Companies.
For information regarding the percentage of Ameren Missouri’s and Ameren Illinois’ projected remaining natural gas supply requirements that are price-hedged through 2027, see Commodity Price Risk under Part II, Item 7A, of this report.
For information regarding the percentage of Ameren Missouri’s and Ameren Illinois’ projected remaining natural gas supply requirements that are price-hedged through 2028, see Commodity Price Risk under Part II, Item 7A, of this report.
The utility rates charged to customers are determined by governmental entities, including the MoPSC, the ICC, and the FERC. 7 Table of Contents Decisions by these entities are influenced by many factors, including the cost of providing service, the prudency of expenditures, the quality of service, regulatory staff knowledge and experience, customer intervention, and economic conditions, as well as social and political views.
The utility rates charged to customers are determined by governmental entities, including the MoPSC, the ICC, and the FERC. Decisions by these entities are influenced by many factors, including the cost of providing service, the prudency of expenditures, the quality of service, regulatory staff knowledge and experience, customer intervention, and economic conditions, as well as social and political views.
Ameren Missouri has inventories and supply contracts sufficient to meet all of its uranium (concentrate and hexafluoride), conversion, enrichment, and fabrication requirements at least through the 2026 refueling. RENEWABLE ENERGY AND ZERO EMISSION STANDARDS Missouri and Illinois laws require electric utilities to include renewable energy resources in their portfolios.
Ameren Missouri has inventories and supply contracts sufficient to meet all of its uranium (concentrate and hexafluoride), conversion, enrichment, and fabrication requirements at least through the spring 2028 refueling. RENEWABLE ENERGY AND ZERO EMISSION STANDARDS Missouri and Illinois laws require electric utilities to include renewable energy resources in their portfolios.
Dividends on Ameren’s common stock and the payment of expenses by Ameren depend on distributions made to it by its subsidiaries. 6 Table of Contents Below is a summary description of Ameren’s principal subsidiaries – Ameren Missouri, Ameren Illinois, and ATXI. Ameren also has other subsidiaries that conduct other activities, such as providing shared services.
Dividends on Ameren’s common stock and the payment of expenses by Ameren depend on distributions made to it by its subsidiaries. Below is a summary description of Ameren’s principal subsidiaries – Ameren Missouri, Ameren Illinois, and ATXI. Ameren also has other subsidiaries that conduct other activities, such as providing shared services.
Based on IPA procurement events that align with the IPA’s plan, Ameren Illinois has contractual commitments of approximately 0.7 million wind renewable energy credits per year and approximately 1.7 million solar renewable energy credits per year. Ameren Illinois has also entered into contracts, ending in 2032, to purchase approximately 0.6 million wind renewable energy credits per year.
Based on IPA procurement events that align with the IPA’s plan, Ameren Illinois has contractual commitments to purchase approximately 1.0 million wind renewable energy credits per year and approximately 3.1 million solar renewable energy credits per year. Ameren Illinois has also entered into contracts, ending in 2032, to purchase approximately 0.6 million wind renewable energy credits per year.
Historically, the auctions were designed to cover annual peak demand plus a target reserve margin. Beginning with the April 2023 auction for the June 2023 to May 2024 planning year, auctions will include four seasonal load forecasts and available capacity levels and will be designed to cover each season’s peak demand plus a target reserve margin.
Historically, the auctions were designed to cover annual peak demand plus a target reserve margin. Beginning with the April 2023 auction for the June 2023 to May 2024 planning year, auctions include four seasonal load forecasts and available capacity levels and are designed to cover each season’s peak demand plus a target reserve margin.
These issues include: • the potential for changes in laws, regulations, enforcement efforts, and policies at the state and federal levels; • corporate tax law changes, including the IRA, as well as additional interpretations, regulations, amendments, or technical corrections that affect the amount and timing of income tax payments, reduce or limit the ability to claim certain deductions and use carryforward tax benefits and/or credits, or result in rate base reductions; • cybersecurity risks, cyber attacks, including ransomware and other ransom-based attacks, hacking, social engineering, and other forms of malicious cybersecurity and/or privacy events, which could result in the loss of operational control of energy centers and electric and natural gas transmission and distribution systems and/or the theft or inappropriate release of certain types of information, including sensitive customer, employee, financial, and operating system information; • acts of sabotage, which have increased in frequency and severity within the utility industry, terrorism, and other intentionally disruptive acts; • political, regulatory, and customer resistance to higher rates; • the potential for more intense competition in generation, supply, and distribution, including new technologies and their declining costs; • the impact and effectiveness of vegetation management programs; • the potential for reliability issues as fossil-fuel-fired and nuclear generation facilities are retired and replaced with renewable energy generation sources, and the impact on available capacity, capacity prices, and customer rates; 16 Table of Contents • the need to place new transmission and generation facilities in service, which is dependent upon timely regulatory approvals and the availability of necessary labor and materials, among other things, to maintain grid reliability; • the modernization of the electric grid to accommodate a two-way flow of electricity and increase capacity for distributed generation interconnection; • net metering rules and other changes in existing regulatory frameworks and recovery mechanisms to address the allocation of costs to customers who own generation resources that enable them both to sell power to us and to purchase power from us through the use of our transmission and distribution assets; • legislation or programs to encourage or mandate energy efficiency, energy conservation, and renewable sources of power, and the lack of consensus as to how those programs should be paid for; • pressure and uncertainty on customer growth and sales volumes in light of economic conditions; • distributed generation, energy storage, technological advances, and energy-efficiency or conservation initiatives; • changes in the structure of the industry as a result of changes in federal and state laws, including the formation and growth of independent transmission entities; • changes in the allowed ROE, including ROE incentive adders, on FERC-regulated electric transmission assets; • the availability of fuel and fluctuations in fuel prices; • the availability of materials and equipment, and the potential disruptions in supply chains; • the availability of a skilled work force, including transferring the specialized knowledge of those who are nearing retirement to employees succeeding them; • inflationary pressures on the prices of commodities, labor, services, materials, and supplies, increasing interest rates, and impacts associated with extended recovery periods from customers; • the potential for reduced efficiency and productivity due to challenges of hybrid remote working arrangements for non-field employees; • regulatory lag; • the influence of macroeconomic factors on yields of United States Treasury securities and on the allowed ROE provided by regulators; • higher levels of infrastructure and technology investments and adjustments to customer rates associated with the refund of excess deferred income taxes that have resulted in, and are expected to continue to result in, negative or decreased free cash flow, which is defined as cash flows from operating activities less cash flows from investing activities and dividends paid; • the demand for access to renewable energy generation at rates acceptable to customers; • public concerns about the siting of new facilities, and challenges that members of the public can assert against applications for governmental permits and other approvals required to site and build new facilities that can result in significant cost increases, delays and denial of the permits and approvals by the regulators; • complex new and proposed environmental laws including statutes, regulations, and requirements, such as air and water quality standards, mercury emissions standards, limitations on the use of natural gas in generation, CCR management requirements, and potential CO 2 limitations, which may limit, or result in the cessation of, the operation of electric generating units; • public concerns about the potential environmental impacts from the combustion of fossil fuels, as well as pressure from public interest groups regarding limiting the use of natural gas; • certain investors’ concerns about investing in, as well as certain insurers’ concerns about providing coverage to, utility companies that have coal-fired generation assets; • increasing scrutiny by investors and other stakeholders of ESG practices; • aging infrastructure and the need to construct new power generation, transmission, and distribution facilities, which have long time frames for completion, with limited long-term ability to predict power and commodity prices and regulatory requirements; • public concerns about nuclear generation, decommissioning, and the disposal of nuclear waste; • industry reputational challenges resulting from inappropriate lobbying and similar activities by certain utility companies; and • consolidation of electric and natural gas utility companies.
These issues include: • the potential for changes in laws, regulations, enforcement efforts, and policies at the state and federal levels; • corporate tax law changes, including the IRA, as well as additional interpretations, regulations, amendments, or technical corrections that affect the amount and timing of income tax payments, reduce or limit the ability to claim certain deductions and use carryforward tax benefits and/or credits, or result in rate base reductions; • cybersecurity risks, cyber attacks, including ransomware and other ransom-based attacks and those attacks arising from or generated by artificial intelligence, hacking, social engineering, and other forms of malicious cybersecurity and/or privacy events, which could result in the loss of operational control of energy centers and electric and natural gas transmission and distribution systems and/or the theft or inappropriate release of certain types of information, including sensitive customer, employee, financial, and operating system information; • acts of sabotage, which have increased in frequency and severity within the utility industry, terrorism, and other intentionally disruptive acts; • political, regulatory, and customer resistance to higher rates; • the potential for more intense competition in generation, supply, and distribution, including new technologies and their declining costs; • the impact and effectiveness of vegetation management programs; • the potential for reliability issues due to inadequate resources resulting from the retirement of fossil-fuel-fired and nuclear generation facilities as they are replaced with renewable energy generation sources, market inefficiencies related to prices for purchased power, capacity, and ancillary services, and other factors; • the need to place new transmission and generation facilities in service, which is dependent upon timely regulatory approvals and the availability of necessary labor and materials, among other things, to maintain grid reliability; • the modernization of the electric grid to accommodate a two-way flow of electricity and increase capacity for distributed generation interconnection; • net metering rules and other changes in existing regulatory frameworks and recovery mechanisms to address the allocation of costs to customers who own generation resources that enable them both to sell power to us and to purchase power from us through the use of our transmission and distribution assets; • legislation or programs to encourage or mandate energy efficiency, energy conservation, and renewable sources of power, and the lack of consensus as to how those programs should be paid for; • pressure and uncertainty on customer growth and sales volumes in light of economic conditions; • distributed generation, energy storage, technological advances, and energy-efficiency or conservation initiatives; 16 Table of Conten t s • changes in the structure of the industry as a result of changes in federal and state laws, including the formation and growth of independent transmission entities; • changes in the allowed ROE, including ROE incentive adders, on FERC-regulated electric transmission assets; • the availability of fuel and fluctuations in fuel prices; • the availability of materials and equipment, and the potential disruptions in supply chains; • the availability of a skilled work force, including transferring the specialized knowledge of those who are nearing retirement to employees succeeding them; • inflationary pressures on the prices of commodities, labor, services, materials, and supplies, high interest rates, and impacts associated with extended recovery periods from customers; • maintaining affordability of electric and natural gas utility services for customers; • the potential for reduced efficiency and productivity due to challenges of hybrid remote working arrangements for non-field employees; • regulatory lag; • the influence of macroeconomic factors on yields of United States Treasury securities and on the allowed ROE provided by regulators; • higher levels of infrastructure and technology investments and adjustments to customer rates associated with the refund of excess deferred income taxes that have resulted in, and are expected to continue to result in, negative or decreased free cash flow, which is defined as cash flows from operating activities less cash flows from investing activities and dividends paid; • the demand for access to renewable energy generation at rates acceptable to customers; • public concerns about the siting of new facilities, and challenges that members of the public can assert against applications for governmental permits and other approvals required to site and build new facilities that can result in significant cost increases, delays and denial of the permits and approvals by the regulators; • complex new and proposed environmental laws including statutes, regulations, and requirements, such as air and water quality standards, mercury emissions standards, limitations on the use of natural gas in generation, CCR management requirements, and potential CO 2 limitations, which may limit, or result in the cessation of, the operation of electric generating units; • public concerns about the potential environmental impacts from the combustion of fossil fuels; • pressure from public interest groups regarding limiting the use of natural gas, as well as proposed restrictions on the use of natural gas by state and local authorities; • certain investors’ concerns about investing in, as well as certain insurers’ concerns about providing coverage to, utility companies that have coal-fired generation assets; • increasing scrutiny by investors and other stakeholders of ESG practices; • aging infrastructure and the need to construct new power generation, transmission, and distribution facilities, which have long time frames for completion, with limited long-term ability to predict power and commodity prices and regulatory requirements; • public concerns about nuclear generation, decommissioning, and the disposal of nuclear waste; • industry reputational challenges resulting from alleged or actual legal, regulatory or compliance failures, including in connection with lobbying and political activities or liabilities arising out of wildfires or other catastrophic events; and • consolidation of electric and natural gas utility companies.
The Ameren Companies expect continued constructive relationships with their respective labor unions. The Ameren Missouri collective bargaining unit contracts expire in 2025 and 2026, which cover 4% and 96% of represented employees, respectively. The Ameren Illinois collective bargaining unit contracts expire in 2023 and 2026, which cover 8% and 92% of represented employees, respectively.
The Ameren Companies expect continued constructive relationships with their respective labor unions. The Ameren Missouri collective bargaining unit contracts expire in 2025 and 2026, and cover 4% and 96% of represented employees, respectively. The Ameren Illinois collective bargaining unit contracts expire in 2026 and 2027, and cover 92% and 8% of represented employees, respectively.
Depending on the jurisdiction, the effects of regulatory lag are mitigated by various means, including annual revenue requirement reconciliations, the decoupling of revenues from sales volumes to ensure revenues approved in a regulatory rate review are not affected by changes in sales volumes, the recovery of certain capital investments between traditional regulatory rate reviews, the level and timing of expenditures, the use of future test years to establish customer rates, and the use of trackers and riders.
Depending on the 7 Table of Conten t s jurisdiction, the effects of regulatory lag are mitigated by various means, including annual revenue requirement reconciliations, the decoupling of revenues from sales volumes to ensure revenues approved in a regulatory rate review are not affected by changes in sales volumes, the recovery of certain capital investments between traditional regulatory rate reviews, the level and timing of expenditures, the use of future test years to establish customer rates, and the use of trackers and riders.
The seasonal auction structure will help to address variability in resources as the MISO begins to rely more heavily on renewable generation. Ameren Missouri Ameren Missouri’s electric supply is primarily generated from its energy centers.
The seasonal auction structure was established to help to address variability in resources as the MISO begins to rely more heavily on renewable generation. Ameren Missouri Ameren Missouri’s electric supply is primarily generated from its energy centers.
The requirement is subject to an average 1% annual increase on customer rates over any 10-year period. For renewable generation facilities located in Missouri, 125% of the electricity generated counts towards meeting the requirement.
The requirement is subject to an average 1% annual limit on increases to customer rates over any 10-year period. For renewable generation facilities located in Missouri, 125% of the electricity generated counts towards meeting the requirement.
The AMIL balancing authority area includes the load of Ameren Illinois and certain natural gas-fired energy centers of Ameren Missouri, and had a peak demand of 8,510 MWs in 2022. The Ameren transmission system directly connects with 15 other balancing authority areas for the exchange of electric energy. Ameren Missouri, Ameren Illinois, and ATXI are transmission-owning members of the MISO.
The AMIL balancing authority area includes the load of Ameren Illinois and certain natural gas-fired energy centers of Ameren Missouri, and had a peak demand of 8,859 MWs in 2023. The Ameren transmission system directly connects with 15 other balancing authority areas for the exchange of electric energy. Ameren Missouri, Ameren Illinois, and ATXI are transmission-owning members of the MISO.
The purchased power and related procurement costs incurred by Ameren Illinois are passed directly to its electric distribution customers through a cost recovery mechanism. Transmission costs are charged to customers who purchase electricity from Ameren Illinois and to alternative retail electric suppliers through a cost recovery mechanism.
The purchased power and related procurement costs incurred by Ameren Illinois are passed directly to its electric distribution customers through a cost recovery mechanism. Transmission costs are charged to customers who purchase electricity from Ameren Illinois through a cost recovery mechanism.
In 2022, 2021, and 2020, Ameren Illinois procured power on behalf of its customers for 28%, 23%, and 23%, respectively, of its total kilowatthour sales.
In 2023, 2022, and 2021, Ameren Illinois procured power on behalf of its customers for 28%, 28%, and 23%, respectively, of its total kilowatthour sales.
Steps include evaluating the potential for further diversification of Ameren Missouri’s generation portfolio through 10 Table of Contents renewable energy generation, including wind and solar generation, natural gas-fired combined cycle generation, including the potential to switch to hydrogen fuel and/or blend hydrogen fuel with natural gas and install carbon capture technology, extending the operating license for the Callaway Energy Center, additional customer energy-efficiency and demand response programs, distributed energy resources, and energy storage.
Steps include evaluating the potential for further diversification of Ameren Missouri’s generation portfolio through renewable energy generation, including wind and solar generation, natural gas-fired generation, including the potential to switch to hydrogen fuel and/or blend hydrogen fuel with natural gas and install carbon capture technology, extending the operating license for the Callaway Energy Center, additional customer energy-efficiency and demand response programs, distributed energy resources, and energy storage.
TRANSMISSION Ameren owns an integrated transmission system that is composed of the transmission assets of Ameren Missouri, Ameren Illinois, and ATXI. Ameren also operates two MISO balancing authority areas: AMMO and AMIL. The AMMO balancing authority area includes the load and most energy centers of Ameren Missouri, and had a peak demand of 7,584 MWs in 2022.
TRANSMISSION Ameren owns an integrated transmission system that is composed of the transmission assets of Ameren Missouri, Ameren Illinois, and ATXI. Ameren also operates two MISO balancing authority areas: AMMO and AMIL. The AMMO balancing authority area includes the load and most energy centers of Ameren Missouri, and had a peak demand of 7,836 MWs in 2023.
As a component of the energy-efficiency programs, Ameren Missouri and Ameren Illinois have invested in electric smart meters to provide customers more visibility to their energy consumption and facilitate more efficient use of energy. As of December 31, 2022, smart meters have been installed for 61% of Ameren Missouri’s electric customers.
As a component of the energy-efficiency programs, Ameren Missouri and Ameren Illinois have invested in electric smart meters to provide customers more visibility to their energy consumption and facilitate more efficient use of energy. As of December 31, 2023, smart meters have been installed for 88% of Ameren Missouri’s electric customers.
Ameren Illinois’ natural gas energy-efficiency program costs are recovered through a rider. 13 Table of Contents NATURAL GAS SUPPLY FOR DISTRIBUTION Ameren Missouri and Ameren Illinois are responsible for the purchase and delivery of natural gas to their customers. Ameren Missouri and Ameren Illinois each develop and manage a portfolio of natural gas supply resources.
Ameren Illinois’ natural gas energy-efficiency program costs are recovered through a rider. 13 Table of Conten t s NATURAL GAS SUPPLY FOR DISTRIBUTION Ameren Missouri and Ameren Illinois are responsible for the purchase and delivery of natural gas to their customers. Ameren Missouri and Ameren Illinois each develop and manage a portfolio of natural gas supply resources.
A more detailed description can be found in Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of this report. • Ameren Missouri operates a rate-regulated electric generation, transmission, and distribution business and a rate-regulated natural gas distribution business in Missouri. • Ameren Illinois operates rate-regulated electric transmission, electric distribution, and natural gas distribution businesses in Illinois. • ATXI operates a FERC rate-regulated electric transmission business in the MISO.
A more detailed description can be found in Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of this report. • Ameren Missouri operates a rate-regulated electric generation, transmission, and distribution business and a rate-regulated natural gas distribution business in Missouri. 6 Table of Conten t s • Ameren Illinois operates rate-regulated electric transmission, electric distribution, and natural gas distribution businesses in Illinois. • ATXI operates a FERC rate-regulated electric transmission business in the MISO.
Both renewable energy credits and zero emission credits have cost recovery mechanisms, which allow Ameren Illinois to collect from, or refund to, customers differences between actual costs incurred from the resulting contracts and the amounts collected from customers.
Both renewable energy credits and zero emission credits have cost recovery mechanisms, which allow Ameren Illinois to collect from, or refund to, customers differences between actual costs incurred from the purchase of the credits and the amounts collected from customers.
In connection with the planned accelerated retirement of the Rush Island Energy Center, Ameren Missouri expects to seek approval from the MoPSC to finance the costs associated with the retirement, including the remaining unrecovered net plant balance associated with the facility, through the issuance of securitized utility tariff bonds pursuant to the Missouri securitization statute.
In connection with the accelerated retirement of the Rush Island Energy Center, Ameren Missouri is seeking approval from the MoPSC to finance the costs associated with the retirement, including the remaining unrecovered net plant balance associated with the facility, through the issuance of securitized utility tariff bonds pursuant to the Missouri securitization statute.
While Ameren Missouri has minimum purchase obligations associated with these agreements, the majority of these agreements are not associated with any specific coal-fired energy center. Ameren Missouri burned approximately 14.5 million tons of coal in 2022.
While Ameren Missouri has minimum purchase obligations associated with these agreements, the majority of these agreements are not associated with any specific coal-fired energy center. Ameren Missouri burned approximately 11.5 million tons of coal in 2023.
Customers that elect to receive a generation rebate and are enrolled in net metering are allowed to net their supply service charges, but not their distribution service charges. Effective January 2023, customers that elect to receive energy storage rebates and have not received generation rebates are allowed to net their supply and distribution service charges.
Customers that elect to receive a generation rebate and are enrolled in net metering are allowed to net their power supply service charges, but not their distribution service charges. Customers that elect to receive energy storage rebates and have not received generation rebates are allowed to net their power supply and distribution service charges.
The SERC is one of six regional entities and represents all or portions of 16 central and southeastern states under authority from the NERC for the purpose of implementing and enforcing reliability standards approved by the FERC.
The SERC is one of six regional entities and represents all or portions of 16 central and southeastern states under authority from the NERC for the purpose of 8 Table of Conten t s implementing and enforcing reliability standards approved by the FERC.
Ameren Missouri has entered into uranium, uranium conversion, uranium enrichment, and fabrication contracts to procure the fuel supply for its Callaway Energy Center. The Callaway Energy Center requires refueling at 18-month intervals. The last refueling was completed in May 2022. The next refueling is scheduled for the fall of 2023.
Ameren Missouri has entered into uranium, uranium conversion, uranium enrichment, and fabrication contracts to procure the fuel supply for its Callaway Energy Center. The Callaway Energy Center requires refueling at 18-month intervals. The last refueling was completed in November 2023. The next refueling is scheduled for the spring of 2025.
General Regulatory Matters Ameren Missouri, Ameren Illinois, and ATXI must receive FERC approval to enter into various transactions, such as issuing short-term debt securities and conducting certain acquisitions, mergers, and consolidations involving electric utility holding companies.
General Regulatory Matters Ameren Missouri, Ameren Illinois, and ATXI must receive FERC approval to enter into various transactions, such as issuing short-term debt securities and conducting certain acquisitions, mergers, and consolidations.
As a part of our assessment, we conduct confidential employee engagement surveys at least annually to identify areas of strength and opportunities for improvement in our employees’ experience, and take actions aimed at increasing employee engagement.
As a part of our assessment, we conduct confidential employee engagement surveys twice each year to identify areas of strength and opportunities for improvement in our employees’ experience, and take actions aimed at increasing employee engagement.
The plan includes a portfolio of customer energy-efficiency and demand response programs through December 2023. Ameren Missouri intends to invest approximately $350 million over the life of the plan, including $75 million in 2023. In addition, the plan includes a performance incentive that provides Ameren Missouri an opportunity to earn additional revenues by achieving certain customer energy-efficiency goals.
The plan includes a portfolio of customer energy-efficiency and demand response programs through December 2024. Ameren Missouri intends to invest approximately $420 million over the life of the plan, including $76 million in 2024. In addition, the plan includes a performance incentive that provides Ameren Missouri an opportunity to earn revenues by achieving certain customer energy-efficiency goals.
The remaining coal is typically purchased from the Illinois Basin. Targeted coal inventory levels may be adjusted because of generation levels 11 Table of Contents or uncertainties of supply due to potential work stoppages, delays in coal deliveries, equipment breakdowns, and other factors.
The remaining coal is typically purchased from the Illinois Basin. Targeted coal inventory levels may be adjusted because of generation levels or uncertainties of supply due to delays in coal deliveries, equipment breakdowns, and other factors.
The extent of the regulatory lag varies for each of Ameren’s electric and natural gas jurisdictions, with the Ameren Transmission and Ameren Illinois Electric Distribution businesses experiencing the least amount of regulatory lag.
The extent of the regulatory lag varies for each of Ameren’s electric and natural gas jurisdictions, with the Ameren Transmission business experiencing the least amount of regulatory lag.
In the April 2022 MISO capacity auction, Ameren Missouri’s generation resources exceeded its native load capacity requirements. Ameren Illinois purchases capacity from the MISO and through bilateral contracts resulting from IPA procurement events. In August 2022, the FERC issued an order approving changes to the annual MISO capacity auction.
In the April 2023 MISO capacity auction, Ameren Missouri’s generation resources exceeded its native load capacity requirements for the June 2023 through May 2024 period. Ameren Illinois purchases capacity from the MISO and through bilateral contracts resulting from IPA procurement events. In 2022, the FERC issued an order approving changes to the annual MISO capacity auction.
In July 2022, the ICC issued an order requiring Ameren Illinois to perform a cost-benefit study of continued participation in the MISO compared to participation in PJM Interconnection LLC, another RTO, and file the study by July 2023.
In July 2022, the ICC issued an order requiring Ameren Illinois to perform a cost-benefit study of continued participation in the MISO compared to participation in PJM Interconnection LLC, another RTO. In July 2023, Ameren Illinois filed its cost-benefit study with the ICC.
The electric energy-efficiency program investments and the return on those investments are collected from customers through a rider and are not included in the electric distribution service performance-based formula ratemaking framework.
The electric energy-efficiency program investments and the return on those investments are collected from customers through a rider and are not included in the electric distribution service MYRP framework.
In doing so, we strive to align our employees to our mission and vision, improve safety, enhance innovation, increase productivity, attract and retain top talent, and recognize employee contributions, among other things. We assess employee engagement through a variety of channels.
In doing so, we strive to align our employees to our mission and vision, improve safety, continuously improve operating performance, attract and retain top talent, and recognize employee contributions, among other things. We assess employee engagement through a variety of channels.
Ameren Missouri and Ameren Illinois satisfied their renewable energy portfolio requirements in 2022. Ameren Missouri In Missouri, utilities are required to purchase or generate electricity equal to at least 15% of native load sales from renewable energy sources, with at least 2% of the requirement derived from solar energy.
Ameren Missouri and Ameren Illinois satisfied their renewable energy portfolio requirements in 2023, pending regulatory review by the MoPSC for Ameren Missouri. Ameren Missouri In Missouri, utilities are required to purchase or generate electricity equal to at least 15% of native load sales from renewable energy sources, with at least 2% of the requirement derived from solar energy.
(b) Includes $104 million, $66 million, and $52 million in 2022, 2021, and 2020, respectively, of electric operating revenues from transmission services provided to Ameren Illinois Electric Distribution. 18 Table of Contents Electric Operating Statistics – Year Ended December 31, 2022 2021 2020 Ameren Missouri fuel costs (cents per kilowatthour generated) (a) 1.41 ¢ 1.46 ¢ 1.38 ¢ Source of Ameren Missouri energy supply: Coal 61.6 % 73.0 % 67.3 % Nuclear 21.6 10.5 19.4 Hydroelectric 3.2 4.2 4.5 Wind 4.7 3.7 — Natural gas 1.1 1.0 0.5 Methane gas and solar 0.2 0.2 0.5 Purchased power – wind 0.8 0.6 0.6 Purchased power – other 6.8 6.8 7.2 Ameren Missouri total 100.0 % 100.0 % 100.0 % (a) Ameren Missouri fuel costs exclude $(98) million, $1 million, and $(49) million in 2022, 2021, and 2020, respectively, for changes in FAC recoveries.
(b) Includes $113 million, $104 million, and $66 million in 2023, 2022, and 2021, respectively, of electric operating revenues from transmission services provided to Ameren Illinois Electric Distribution. 18 Table of Conten t s Electric Operating Statistics – Year Ended December 31, 2023 2022 2021 Ameren Missouri fuel costs (cents per kilowatthour generated) (a) 1.29 ¢ 1.41 ¢ 1.46 ¢ Source of Ameren Missouri energy supply: Coal 54.6 % 61.6 % 73.0 % Nuclear 25.6 21.6 10.5 Hydroelectric 2.4 3.2 4.2 Wind 4.9 4.7 3.7 Natural gas 1.1 1.1 1.0 Methane gas and solar 0.2 0.2 0.2 Purchased power – wind 0.6 0.8 0.6 Purchased power – other 10.6 6.8 6.8 Ameren Missouri total 100.0 % 100.0 % 100.0 % (a) Ameren Missouri fuel costs exclude $72 million, $(98) million, and $1 million in 2023, 2022, and 2021, respectively, for changes in FAC recoveries.
Natural Gas Operating Statistics – Year Ended December 31, 2022 2021 2020 Natural Gas Sales – dekatherms (in millions): Ameren Missouri: Residential 8 7 7 Commercial 4 4 3 Industrial 1 1 1 Transport 9 9 9 Ameren Missouri total 22 21 20 Ameren Illinois Natural Gas: Residential 59 54 55 Commercial 18 16 15 Industrial 6 4 7 Transport 99 100 96 Ameren Illinois Natural Gas total 182 174 173 Ameren total 204 195 193 Natural Gas Operating Revenues (in millions): Ameren Missouri: Residential $ 119 $ 79 $ 76 Commercial 56 34 29 Industrial 7 4 4 Transport and other 15 24 16 Ameren Missouri total $ 197 $ 141 $ 125 Ameren Illinois Natural Gas: Residential $ 846 $ 657 $ 541 Commercial 221 172 136 Industrial 41 35 14 Transport and other 72 93 69 Ameren Illinois Natural Gas total $ 1,180 $ 957 $ 760 Other and intercompany eliminations (1) (1) (2) Ameren total $ 1,376 $ 1,097 $ 883 Rate Base Statistics – At December 31, 2022 2021 2020 Rate Base (in billions): Electric transmission and distribution $ 15.4 $ 13.5 $ 12.1 Natural gas transmission and distribution 2.9 2.7 2.4 Coal generation: Labadie Energy Center 0.9 0.9 0.9 Sioux Energy Center 0.7 0.7 0.7 Rush Island Energy Center 0.4 0.4 0.4 Meramec Energy Center (retired in December 2022) — 0.1 0.1 Coal generation total 2.0 2.1 2.1 Nuclear generation 1.5 1.5 1.5 Renewable generation (hydroelectric, wind, solar, methane gas) 1.5 1.5 1.0 Natural gas generation 0.3 0.3 0.3 Rate base total $ 23.6 $ 21.6 $ 19.4 19 Table of Contents AVAILABLE INFORMATION The Ameren Companies make available free of charge through Ameren’s website (www.amereninvestors.com) their annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports filed with or furnished to the SEC pursuant to Sections 13(a) or 15(d) of the Exchange Act as soon as reasonably possible after such reports are electronically filed with, or furnished to, the SEC.
Natural Gas Operating Statistics – Year Ended December 31, 2023 2022 2021 Natural Gas Sales – dekatherms (in millions): Ameren Missouri: Residential 6 8 7 Commercial 3 4 4 Industrial 1 1 1 Transport 9 9 9 Ameren Missouri total 19 22 21 Ameren Illinois Natural Gas: Residential 47 59 54 Commercial 14 18 16 Industrial 3 6 4 Transport 99 99 100 Ameren Illinois Natural Gas total 163 182 174 Ameren total 182 204 195 Natural Gas Operating Revenues (in millions): Ameren Missouri: Residential $ 100 $ 119 $ 79 Commercial 46 56 34 Industrial 5 7 4 Transport and other 14 15 24 Ameren Missouri total $ 165 $ 197 $ 141 Ameren Illinois Natural Gas: Residential $ 657 $ 846 $ 657 Commercial 164 221 172 Industrial 14 41 35 Transport and other 62 72 93 Ameren Illinois Natural Gas total $ 897 $ 1,180 $ 957 Other and intercompany eliminations (1) (1) (1) Ameren total $ 1,061 $ 1,376 $ 1,097 Rate Base Statistics – At December 31, 2023 2022 2021 Rate Base (in billions): Electric transmission and distribution $ 17.5 $ 15.4 $ 13.5 Natural gas transmission and distribution 3.2 2.9 2.7 Coal generation: Labadie Energy Center 0.9 0.9 0.9 Sioux Energy Center 0.6 0.7 0.7 Rush Island Energy Center (scheduled to be retired in October 2024) 0.4 0.4 0.4 Meramec Energy Center (retired in December 2022) — — 0.1 Coal generation total 1.9 2.0 2.1 Nuclear generation 1.5 1.5 1.5 Renewable generation (hydroelectric, wind, solar, methane gas) 1.4 1.5 1.5 Natural gas generation 0.3 0.3 0.3 Rate base total $ 25.8 $ 23.6 $ 21.6 19 Table of Conten t s AVAILABLE INFORMATION The Ameren Companies make available free of charge through Ameren’s website (www.amereninvestors.com) their annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports filed with or furnished to the SEC pursuant to Sections 13(a) or 15(d) of the Exchange Act as soon as reasonably possible after such reports are electronically filed with, or furnished to, the SEC.
Pursuant to the IETL, if funds collected from customers are not used to procure renewable energy credits, they would be refunded to customers pursuant to a reconciliation proceeding, the first of which is expected to be initiated after August 2023.
Pursuant to the CEJA, if funds collected from customers are not used to procure renewable energy credits, they would be refunded to customers pursuant to a reconciliation proceeding, the first of which was initiated in August 2023.
The following table summarizes the key terms of the rate orders in effect for customer billings for each of Ameren’s rate-regulated utilities as of January 1, 2023, except as noted: Rate Regulator Effective Rate Order Issued In Allowed ROE Percent of Common Equity Rate Base (in billions) Portion of Ameren’s 2022 Operating Revenues (a) Ameren Missouri Electric service (b) MoPSC December 2021 (c) (c) (c) $10.2 (d) 48% Natural gas delivery service MoPSC December 2021 (e) (e) (e) $0.3 3% Ameren Illinois Electric distribution delivery service (f) ICC December 2022 7.85% 50.00% $3.9 28% Natural gas delivery service (g) ICC January 2021 9.67% 52.00% $2.1 15% Electric transmission service (h) FERC (h) 10.52% 54.48% $3.4 4% ATXI Electric transmission service (h) FERC (h) 10.52% 60.16% $1.3 2% (a) Includes pass-through costs recovered from customers, such as purchased power for electric distribution delivery service and natural gas purchased for resale for natural gas delivery service, and intercompany eliminations.
The following table summarizes the key terms of the rate orders in effect for customer billings for each of Ameren’s rate-regulated utilities as of January 1, 2024, except as noted: Rate Regulator Effective Rate Order Issued In Rates Effective Allowed ROE Percent of Common Equity Rate Base (in billions) Portion of Ameren’s 2023 Operating Revenues (a) Ameren Missouri Electric service (b) MoPSC June 2023 July 2023 (c) (c) (c) 49% Natural gas delivery service MoPSC December 2021 February 2022 (d) (d) $0.3 2% Ameren Illinois Electric distribution delivery service (e) ICC December 2023 January 2024 8.72% 50.00% $3.9 29% Natural gas delivery service (f) ICC November 2023 November 2023 9.44% 50.00% $2.8 12% Electric transmission service (g) FERC (g) January 2024 10.52% 54.90% $3.9 5% ATXI Electric transmission service (g) FERC (g) January 2024 10.52% 60.16% $1.5 3% (a) Includes pass-through costs recovered from customers, such as purchased power for electric distribution delivery service and natural gas purchased for resale for natural gas delivery service, and intercompany eliminations.
The addition of renewable and natural gas-fired combined cycle generation facilities is subject to obtaining necessary project approvals, including FERC approval and the issuance of a certificate of convenience and necessity by the MoPSC, as applicable.
The addition of renewable or natural gas-fired generation facilities is subject to obtaining necessary project approvals, including FERC approval and the issuance of a CCN by the MoPSC, as applicable.
In addition to comprehensive safety and security standards, and mandatory health, safety, and security training programs for applicable employees, we promote programs designed to encourage employees to provide feedback on practices or actions that could harm employees, customers, or the Ameren Companies, including perceived issues related to safety, security (both physical and cyber), ethics and compliance violations, or acts of discrimination.
In addition to comprehensive safety and security standards, and mandatory health, safety, and security training programs for applicable employees, we promote programs designed to encourage employees to provide feedback on practices or actions that could harm employees, customers, or the Ameren Companies, including perceived issues related to safety, security (both physical and cyber), ethics and compliance violations, or acts of discrimination. 14 Table of Conten t s We seek to foster diversity, equity, and inclusion across our organization.
For additional information regarding the July 2022 ICC order, see Note 2 – Rate and Regulatory Matters under Part II, Item 8, of this report. 9 Table of Contents SUPPLY OF ELECTRIC POWER Capacity Ameren Missouri sells nearly all of its capacity to the MISO and purchases the capacity it needs to supply its native load sales from the MISO.
For additional information regarding the RTO cost-benefit study, see Note 2 – Rate and Regulatory Matters under Part II, Item 8, of this report. 9 Table of Conten t s SUPPLY OF ELECTRIC POWER Capacity Ameren Missouri sells nearly all of its capacity to the MISO and purchases the capacity it needs to supply its native load sales from the MISO.
For additional information, see Risk Factors under Part I, Item 1A, Outlook in Management’s Discussion and Analysis of Financial Condition and Results of Operations under Part II, Item 7, and Note 2 – Rate and Regulatory Matters, Note 9 – Callaway Energy Center, and Note 14 – Commitments and Contingencies under Part II, Item 8, of this report. 17 Table of Contents OPERATING STATISTICS The following tables present key electric and natural gas operating statistics for Ameren for the past three years: Electric Operating Statistics – Year Ended December 31, 2022 2021 2020 Electric Sales – kilowatthours (in millions): Ameren Missouri: Residential 13,915 13,366 13,267 Commercial 13,826 13,556 13,117 Industrial 4,090 4,151 4,158 Street lighting and public authority 76 81 88 Ameren Missouri retail load subtotal 31,907 31,154 30,630 Off-system sales 7,645 7,425 7,578 Ameren Missouri total 39,552 38,579 38,208 Ameren Illinois Electric Distribution (a) : Residential 11,708 11,620 11,491 Commercial 11,867 11,795 11,414 Industrial 10,981 11,076 10,674 Street lighting and public authority 410 430 442 Ameren Illinois Electric Distribution total 34,966 34,921 34,021 Eliminate affiliate sales (190) (412) (322) Ameren total 74,328 73,088 71,907 Electric Operating Revenues (in millions): Ameren Missouri: Residential $ 1,578 $ 1,445 $ 1,373 Commercial 1,219 1,126 1,025 Industrial 290 280 261 Other, including street lighting and public authority 171 170 155 Ameren Missouri retail load subtotal $ 3,258 $ 3,021 $ 2,814 Off-system sales and capacity 591 191 170 Ameren Missouri total $ 3,849 $ 3,212 $ 2,984 Ameren Illinois Electric Distribution: Residential $ 1,325 $ 933 $ 867 Commercial 768 545 486 Industrial 199 135 124 Other, including street lighting and public authority (36) 26 21 Ameren Illinois Electric Distribution total $ 2,256 $ 1,639 $ 1,498 Ameren Transmission: Ameren Illinois Transmission (b) $ 424 $ 365 $ 329 ATXI 192 199 194 Eliminate affiliate revenues (1) (2) — Ameren Transmission total $ 615 $ 562 $ 523 Other and intersegment eliminations (139) (116) (94) Ameren total $ 6,581 $ 5,297 $ 4,911 (a) Sales for which power was supplied by Ameren Illinois as well as alternative retail electric suppliers.
For additional information, see Risk Factors under Part I, Item 1A, Outlook in Management’s Discussion and Analysis of Financial Condition and Results of Operations under Part II, Item 7, and Note 2 – Rate and Regulatory Matters, Note 9 – Callaway Energy Center, and Note 14 – Commitments and Contingencies under Part II, Item 8, of this report. 17 Table of Conten t s OPERATING STATISTICS The following tables present key electric and natural gas operating statistics for Ameren for the past three years: Electric Operating Statistics – Year Ended December 31, 2023 2022 2021 Electric Sales – kilowatthours (in millions): Ameren Missouri: Residential 12,839 13,915 13,366 Commercial 13,466 13,826 13,556 Industrial 3,977 4,090 4,151 Street lighting and public authority 71 76 81 Ameren Missouri retail load subtotal 30,353 31,907 31,154 Off-system sales 4,145 7,645 7,425 Ameren Missouri total 34,498 39,552 38,579 Ameren Illinois Electric Distribution (a) : Residential 10,774 11,708 11,620 Commercial 11,602 11,867 11,795 Industrial 10,740 10,981 11,076 Street lighting and public authority 385 410 430 Ameren Illinois Electric Distribution total 33,501 34,966 34,921 Eliminate affiliate sales (30) (190) (412) Ameren total 67,969 74,328 73,088 Electric Operating Revenues (in millions): Ameren Missouri: Residential $ 1,577 $ 1,578 $ 1,445 Commercial 1,280 1,219 1,126 Industrial 306 290 280 Other, including street lighting and public authority 124 171 170 Ameren Missouri retail load subtotal $ 3,287 $ 3,258 $ 3,021 Off-system sales and capacity 407 591 191 Ameren Missouri total $ 3,694 $ 3,849 $ 3,212 Ameren Illinois Electric Distribution: Residential $ 1,344 $ 1,325 $ 933 Commercial 747 768 545 Industrial 186 199 135 Other, including street lighting and public authority (59) (36) 26 Ameren Illinois Electric Distribution total $ 2,218 $ 2,256 $ 1,639 Ameren Transmission: Ameren Illinois Transmission (b) $ 480 $ 424 $ 365 ATXI 198 192 199 Eliminate affiliate revenues (1) (1) (2) Ameren Transmission total $ 677 $ 615 $ 562 Other and intersegment eliminations (150) (139) (116) Ameren total $ 6,439 $ 6,581 $ 5,297 (a) Sales for which power was supplied by Ameren Illinois as well as alternative retail electric suppliers.
The next integrated resource plan is expected to be filed in September 2023. Ameren Missouri continues to evaluate its longer-term needs for new generating capacity.
The next integrated resource plan is expected to be filed in September 2026. 10 Table of Conten t s Ameren Missouri continues to evaluate its longer-term needs for new generating capacity.
Federal and state authorities continually revise these regulations and adopt new regulations, which may impact our planning process and the ultimate implementation of these or other new or revised regulations.
Federal and state authorities continually revise these regulations and adopt new regulations, which may impact our planning process and the ultimate implementation of these or other new or revised regulations. Local and state land use requirements can also potentially impact our planning activities.
The following table presents our employee count and their average tenure at December 31, 2022, and the attrition rate in 2022: Employee Count Average Tenure (in years) Attrition Rate Ameren 9,244 13 8% Ameren Missouri 4,039 14 7% Ameren Illinois 3,243 13 8% Ameren Services 1,962 11 10% 15 Table of Contents Ameren’s workforce is diverse in many ways.
The following table presents our employee count and their average tenure at December 31, 2023, and the attrition rate in 2023: Employee Count Average Tenure (in years) Attrition Rate Ameren 9,372 13 7% Ameren Missouri 4,011 14 8% Ameren Illinois 3,280 13 7% Ameren Services 2,081 10 7% Ameren’s workforce is diverse in many ways.
Our workforce has been stable, with a total attrition rate of 8% in 2022. The majority of employee attrition is attributable to employee retirements, generally allowing for thoughtful workforce and succession planning in advance of these planned transitions.
The majority of employee attrition is attributable to employee retirements, generally allowing for thoughtful workforce and succession planning in advance of these planned transitions.
Ameren Missouri expects to satisfy the nonsolar requirement in 2023 with its High Prairie Renewable, Atchison Renewable, Keokuk, and Maryland Heights energy centers, a 102-MW power purchase agreement with a wind farm operator, and immaterial renewable energy credit purchases in the market. The High Prairie Renewable and Atchison Renewable energy centers are wind generation facilities.
Ameren Missouri expects to satisfy the non-solar requirement in 2024 with its High Prairie Renewable, Atchison Renewable, Keokuk, and Maryland Heights energy centers, a 102-MW power purchase agreement with a wind farm operator, which expires in August 2024, and previously purchased renewable energy credits. The High Prairie Renewable and Atchison Renewable energy centers are wind generation facilities.
The Callaway Energy Center began operation in 1984 and is licensed to operate until 2044. As of December 31, 2022, Ameren Missouri’s coal-fired energy centers represented 9% and 17% of Ameren’s and Ameren Missouri’s rate base, respectively. The Meramec Energy Center was retired at the end of its useful life in December 2022.
As of December 31, 2023, Ameren Missouri’s coal-fired energy centers represented 8% and 16% of Ameren’s and Ameren Missouri’s rate base, respectively. The Callaway Energy Center began operation in 1984 and is licensed to operate until 2044.
The IPA establishes its long-term renewable resources procurement plans in a filing made every two years. In July 2022, the ICC approved the IPA’s latest long-term renewable resources procurement plan.
The IPA establishes its long-term renewable resources procurement plans in a filing made every two years. In February 2024, the ICC approved the IPA’s latest long-term renewable resources procurement plan, which established the 2024 and 2025 renewable energy credit procurement targets.
Missouri law requires Ameren Missouri to offer solar rebates and net metering to certain customers that install renewable generation at their premises. The difference between the cost of the rebates and the amount set in base rates are deferred as a regulatory asset or liability under the RESRAM, and earn carrying costs at short-term interest rates.
The difference between the cost of the solar rebates and the amount set in base rates was deferred as a regulatory asset or liability under the RESRAM, and earn carrying costs at short-term interest rates. Customers that elect to enroll in net metering are allowed to net their generation against their distribution usage within each billing month.
These standards are developed and enforced by the NERC, pursuant to authority delegated to it by the FERC. Ameren Missouri, Ameren Illinois, and ATXI are members of the SERC.
Ameren Missouri, Ameren Illinois, and ATXI are also subject to mandatory reliability standards, including cybersecurity standards adopted by the FERC, to ensure the reliability of the bulk electric power system. These standards are developed and enforced by the NERC, pursuant to authority delegated to it by the FERC. Ameren Missouri, Ameren Illinois, and ATXI are members of the SERC.
Ameren Illinois’ next multi-year integrated grid plan is required by mid-January 2026. Illinois law requires Ameren Illinois to offer rebates and net metering to certain customers that install renewable generation or paired energy storage systems at their premises. The cost of the rebates are deferred as a regulatory asset, which earn a return at the applicable WACC.
Illinois law requires Ameren Illinois to offer rebates and net metering to certain customers who install renewable generation or paired energy storage systems at their premises. The cost of the customer generation rebate program is deferred as a regulatory asset, which earns a return at the applicable WACC.
If the target spending goals are achieved for 2023, additional revenues of $13 million would be recognized in 2023. Through 2022, Ameren Missouri has invested approximately $270 million in MEEIA 2019 customer energy-efficiency programs. Additionally, as part of its Smart Energy Plan, Ameren Missouri has invested $270 million in smart meters since 2019.
If the target program spending goal is achieved for 2024, the performance incentive would result in revenues of $12 million in 2024. Through 2023, Ameren Missouri has invested approximately $343 million in MEEIA 2019 customer energy-efficiency programs. Additionally, as part of its Smart Energy Plan, Ameren Missouri has invested $336 million in smart meters since 2019.
Coal Ameren Missouri has an ongoing need for coal as fuel for generation, and pursues a price-hedging strategy consistent with this requirement. Ameren Missouri has agreements in place to purchase and transport coal to its energy centers.
See Item 2 – Properties under Part I of this report for information regarding our energy centers. 11 Table of Conten t s Coal Ameren Missouri has an ongoing need for coal as fuel for generation, and pursues a price-hedging strategy consistent with this requirement. Ameren Missouri has agreements in place to purchase and transport coal to its energy centers.
The plan outlines how Ameren Illinois expects to operate and invest in electric distribution infrastructure in order to support grid modernization, clean energy, energy efficiency, and the state of Illinois’ renewable energy, equity, climate, electrification, and environmental goals, while providing safe, secure, reliable, and resilient electric distribution service to customers.
The Grid Plan outlines how Ameren Illinois expects to invest in electric distribution infrastructure in order to support grid modernization, clean energy, energy efficiency, and the state of Illinois’ renewable energy, equity, climate, electrification, and environmental goals. Ameren Illinois’ next Grid Plan is required to be filed by mid-January 2026.
In addition, Ameren Missouri, Ameren Illinois, and ATXI must receive authorization from the applicable state public utility regulatory agency to issue stock and long-term debt securities and to conduct mergers, affiliate transactions, and various other activities. 8 Table of Contents Ameren Missouri, Ameren Illinois, and ATXI are also subject to mandatory reliability standards, including cybersecurity standards adopted by the FERC, to ensure the reliability of the bulk electric power system.
In addition, Ameren Missouri, Ameren Illinois, and ATXI must receive authorization from the applicable state public utility regulatory agency to issue stock and long-term debt securities and to conduct mergers, affiliate transactions, and various other activities.
Additionally, each year management and the Human Resources Committee of Ameren’s board of directors review the diversity of our workforce, leadership team, and leadership development pipeline, as well as the actions taken to further enhance the diversity of our leadership team. Workforce The majority of our workforce is comprised of skilled-craft and STEM-related professional and technical employees.
Additionally, each year management and the Human Resources Committee of Ameren’s board of directors review the diversity of our workforce, leadership team, and leadership pipeline. Workforce The majority of our workforce is comprised of skilled-craft and STEM-related professional and technical employees. Our workforce has been stable, with a total attrition rate of 7% in 2023.
The most recent integrated resource plan was filed in September 2020 and changed in June 2022 to include certain modifications to Ameren Missouri’s preferred approach for meeting customers’ projected long-term energy needs in a cost-effective manner while maintaining system reliability and customer affordability.
The most recent integrated resource plan was filed in September 2023 and includes Ameren Missouri’s preferred plan for meeting customers’ projected long-term energy needs in a manner that maintains system reliability and customer affordability while transitioning to clean energy generation in an environmentally responsible manner.
Although electric customers are allowed to purchase power from an alternative retail electric supplier, Ameren Illinois is required to be the provider of last resort for its electric distribution customers. In 2022, 2021, and 2020, Ameren Illinois procured power on behalf of its customers for 28%, 23%, and 23%, respectively, of its total kilowatthour sales.
Ameren Illinois In Illinois, while electric transmission and distribution service rates are regulated, power supply prices are not. Although electric customers are allowed to purchase power from an alternative retail electric supplier, Ameren Illinois is required to be the provider of last resort for its electric distribution customers.
The following table presents Ameren’s employees by generation at December 31, 2022: Generation Description Ameren Ameren Missouri Ameren Illinois Ameren Services Baby Boomer (birth years between 1946 and 1964) 17% 18% 16% 17% Generation X (birth years between 1965 and 1980) 41% 40% 40% 43% Millennials (birth years between 1981 and 1996) 38% 37% 40% 37% Generation Z/Post Millennial (birth years after 1997) 4% 5% 4% 3% Collective bargaining units at Ameren’s subsidiaries consist of the International Brotherhood of Electrical Workers, the International Union of Operating Engineers, the Laborer’s International Union of North America, the United Association of Plumbers and Pipefitters, and the United Government Security Officers of America.
The following table presents our total employee population that is represented by a collective bargaining unit, is a female, or is racially and/or ethnically diverse at December 31, 2023: Collective Bargaining Unit Female (a) Racially and/or Ethnically Diverse (a) Ameren 46% 24% 16% Ameren Missouri 58% 17% 14% Ameren Illinois 54% 23% 14% Ameren Services 10% 41% 23% (a) Gender, race, and ethnicity were self-reported by our employees. 15 Table of Conten t s The following table presents Ameren’s employees by generation at December 31, 2023: Generation Description Ameren Ameren Missouri Ameren Illinois Ameren Services Baby Boomer (birth years between 1946 and 1964) 13% 13% 13% 13% Generation X (birth years between 1965 and 1980) 40% 40% 39% 42% Millennials (birth years between 1981 and 1996) 41% 40% 42% 39% Generation Z/Post Millennial (birth years after 1997) 6% 7% 6% 6% Collective bargaining units at Ameren’s subsidiaries consist of the International Brotherhood of Electrical Workers, the International Union of Operating Engineers, the Laborer’s International Union of North America, the United Association of Plumbers and Pipefitters, and the United Government Security Officers of America.
In addition, we evaluate our organizational structure and make adjustments and expand roles to facilitate execution of our strategy and organizational efficiency. Talent In order to attract and retain a skilled and diverse workforce, we promote an inclusive work environment, provide opportunities for employees to expand their knowledge and skill sets, and support career development.
Talent In order to attract and retain a skilled and diverse workforce, we promote an inclusive work environment, provide opportunities for employees to expand their knowledge and skill sets, and support career development. Our talent management initiatives include a wide range of recruiting partnerships and programs, including those programs discussed below.
Leadership Ameren’s leaders play a critical role in setting and executing Ameren’s strategic initiatives, modeling our values and culture, and engaging and enabling the workforce. As such, we seek to develop a strong, diverse leadership team. Management engages in an extensive succession planning process annually, which includes the involvement of Ameren’s board of directors.
As such, we seek to develop a strong, diverse leadership team. Management engages in an extensive succession planning process annually, which includes the involvement of Ameren’s board of directors. We develop our leaders both individually, through job rotations, work experiences, and leadership development programs, and as a team, through collaborative learning and mentoring relationships.
We have established programs to recruit early and mid-career talent to further enhance the diversity of our workforce pipelines.
As our business needs change, we remain focused on ensuring that our workforce has the tools and skills necessary to deliver on our strategic initiatives. We have established programs to recruit early and mid-career talent to further enhance the diversity of our workforce pipelines.
We also have employee resource groups, which bring together groups of employees who share common interests or backgrounds. Within these groups, employees collaborate to address concerns and provide training and development opportunities related to challenges or barriers, and offer support for each other, among other things.
We also have employee resource groups, which bring together groups of employees who share common interests or backgrounds. Within these groups, employees collaborate to address concerns and provide training and development opportunities, among other things. Leadership Ameren’s leaders play a critical role in setting and executing Ameren’s strategic initiatives, modeling our values and culture, and engaging and enabling the workforce.
Additionally, employees are encouraged to participate in technical, professional, and leadership development opportunities, and outreach initiatives to engage with the communities that we serve, among other things. As our business needs change, we remain focused on ensuring that our workforce has the tools and skills necessary to deliver on our strategic initiatives.
Our onboarding efforts are designed to ensure early engagement, including the opportunity to participate in mentoring programs. Additionally, employees are encouraged to participate in technical, professional, and leadership development opportunities, and outreach initiatives to engage with the communities that we serve, among other things.
Foundational to our workforce strategy are our core values of: • Safety and security • Commitment to excellence • Respect • Accountability • Diversity, equity, and inclusion • Integrity • Teamwork • Stewardship Ameren’s chief executive officer and chief human resources officer, with the support of other leaders of the Ameren Companies, are responsible for developing and executing our workforce strategy.
Foundational to our workforce strategy are our core competencies of: • Be Strategic • Continuously Improve • Deliver Results • Engage Respectfully • Foster Collaboration • Think Customer Ameren’s chief executive officer and chief human resources officer, with the support of other leaders of the Ameren Companies, are responsible for developing and executing our workforce strategy.
The IPA is expected to file its next long-term renewable resources procurement plan in 2023, which, once approved by the ICC, will establish the 2023 and 2024 renewable energy credit procurement targets. 12 Table of Contents Illinois law also required Ameren Illinois to enter into contracts for zero emission credits in an amount equal to approximately 16% of the actual amount of electricity delivered to retail customers during calendar year 2014, pursuant to Illinois’ zero emission standard.
Based on amounts collected from customers and renewable energy credit purchases under contract, the August 2023 reconciliation proceeding did not result in refunds to customers. 12 Table of Conten t s Illinois law also required Ameren Illinois to enter into contracts to purchase zero emission credits in an amount equal to approximately 16% of the actual amount of electricity delivered to retail customers during calendar year 2014, pursuant to Illinois’ zero emission standard.
We also capitalized on opportunities presented by the COVID-19 pandemic and implemented work-from-home policies, advanced the digital enablement of our workforce, and enhanced our facilities and workforce policies and practices to increase collaboration and productivity. 14 Table of Contents As a part of our culture, every employee is expected to challenge any unsafe act, complete each workday safely, and provide feedback on safety and security matters.
As a part of our culture, every employee is expected to challenge any unsafe act, complete each workday safely, and provide feedback on safety and security matters.
We develop our leaders both individually, through job rotations, work experiences, and leadership development programs, and as a team, through collaborative learning and mentoring relationships. Throughout the year, we offer a variety of forums intended to connect our leaders to our mission, values, strategy and culture, build leadership skills and capabilities, and to promote connection and inclusion.
Throughout the year, we offer a variety of forums intended to connect our leaders to our mission, values, strategy and culture, build leadership skills and capabilities, and to promote connection and inclusion. In addition, we evaluate our organizational structure and make adjustments and expand roles to facilitate execution of our strategy and organizational efficiency.
Pursuant to the IETL, Ameren Illinois is required to file a multi-year integrated grid plan with the ICC every four years. In January 2023, Ameren Illinois filed its first multi-year integrated grid plan for the years 2023 to 2027.
Pursuant to the CEJA, Ameren Illinois is required to file a Grid Plan with the ICC every four years. Ameren Illinois expects to file a revised Grid Plan with the ICC in March 2024 after its initial Grid Plan for the years 2023 to 2027 was rejected by the ICC’s December 2023 order in Ameren Illinois’ MYRP proceeding.
(h) Transmission rates are updated annually and become effective each January. They are determined by a company-specific, forward-looking formula ratemaking framework based on each year’s forecasted information. The 10.52% return, which includes a 50 basis points incentive adder for participation in an RTO, is based on the FERC’s May 2020 order.
(f) This rate order was based on a 2024 future test year. (g) Transmission rates are updated annually and become effective each January. They are determined by a company-specific, forward-looking formula ratemaking framework based on each year’s forecasted information.
At the officer level, which represents 48 individuals, 19% are female, and 21% are racially and/or ethnically diverse.
At the officer level, which represented 50 individuals as of December 31, 2023, 26% were female, and 26% were racially and/or ethnically diverse.
Also in December 2022, Ameren Illinois placed a solar generation facility in service, which is one of two pilot solar projects Ameren Illinois is allowed to invest in under the IETL. See Item 2 – Properties under Part I of this report for information regarding our energy centers.
Ameren Illinois operates a solar generation facility, which is one of two pilot solar projects Ameren Illinois is allowed to invest in under the CEJA. The second solar generation facility is planned be placed in service before the end of 2025.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeWith respect to the transition of Ameren Missouri’s generation fleet and carbon emission reduction targets outlined in the 2022 Change to the 2020 IRP, factors also include MoPSC approval for the retirement of energy centers and new or continued customer energy-efficiency programs; the ability to enter into build-transfer agreements for renewable generation and acquire that generation at a reasonable cost; levels of customer participation in the energy-efficiency programs; the cost and commercial availability of wind, solar, and other renewable generation and battery storage technologies; the cost of natural gas or hydrogen CT technologies; the ability to qualify for, and use or transfer, federal production or investment tax credits; changes in environmental laws or requirements, including those related to CO 2 and other greenhouse gas emissions; and energy prices and demand.
Biggest changeWith respect to the transition of Ameren Missouri’s generation fleet and carbon emission reduction targets outlined in the 2023 IRP, factors also include Ameren Missouri’s ability to obtain CCNs from the MoPSC, and any other required approvals for the addition of renewable resources or natural gas-fired generation, retirement of energy centers, and new or continued customer energy-efficiency 25 Table of Conten t s programs; the ability to enter into agreements for renewable or natural gas-fired generation and acquire or construct that generation at a reasonable cost; the ability to obtain NRC approval for an extension of the operating license for the Callaway Energy Center beyond its current 2044 expiration date; the ability to qualify for, and use or transfer, federal production or investment tax credits; the cost of wind, solar, and other renewable generation and battery storage technologies; the cost of natural gas or hydrogen CT technologies; the ability to maintain system reliability during and after the transition to clean energy generation; new and/or changes in environmental regulations, including those related to CO 2 and other greenhouse gas emissions; energy prices and demand.
Federal, state, and local authorities, including the United States Congress, have considered initiatives to further restrict greenhouse gases to address global climate change. Additionally, international agreements could lead to future federal or state legislation or regulations.
Further, federal, state, and local authorities, including the United States Congress, have considered initiatives to further restrict greenhouse gases to address global climate change. Additionally, international agreements could lead to future federal or state legislation or regulations.
Ameren Missouri’s ownership of the Callaway Energy Center subjects it to risks associated with nuclear generation, including: • potential harmful effects on the environment and human health resulting from radiological releases associated with the operation of nuclear facilities and the storage, handling, and disposal of radioactive materials; • continued uncertainty regarding the federal government’s plan to permanently store spent nuclear fuel and, as a result, the need to provide for long-term storage of spent nuclear fuel at the Callaway Energy Center; • limitations on the amounts and types of insurance available to cover losses that might arise in connection with the Callaway Energy Center or other United States nuclear facilities; • uncertainties about contingencies and retrospective premium assessments relating to claims at the Callaway Energy Center or other United States nuclear facilities; • public and governmental concerns about the safety and adequacy of security at nuclear facilities; • limited availability of fuel supply and our reliance on licensed fuel assemblies from the one NRC-licensed supplier of Callaway Energy Center’s assemblies; • costly and extended outages for scheduled or unscheduled maintenance and refueling; • uncertainties about the technological and financial aspects of decommissioning nuclear facilities at the end of their licensed lives; • the ability to continue to attract and maintain qualified labor to operate the Callaway Energy Center; • the adverse effect of poor market performance and other economic factors on the asset values of nuclear decommissioning trust funds and the corresponding increase, upon MoPSC approval, in customer rates to fund the estimated decommissioning costs; and • potential adverse effects of a natural disaster, acts of sabotage or terrorism, including a cyber attack, or any accident leading to a radiological release.
Ameren Missouri’s ownership of the Callaway Energy Center subjects it to risks associated with nuclear generation, including: • potential harmful effects on the environment and human health resulting from radiological releases associated with the operation of nuclear facilities and the storage, handling, and disposal of radioactive materials; • continued uncertainty regarding the federal government’s plan to permanently store spent nuclear fuel and, as a result, the need to provide for long-term storage of spent nuclear fuel at the Callaway Energy Center; • limitations on the amounts and types of insurance available to cover losses that might arise in connection with the Callaway Energy Center or other United States nuclear facilities; • uncertainties about contingencies and retrospective premium assessments relating to claims at the Callaway Energy Center or other United States nuclear facilities; • public and governmental concerns about the safety and adequacy of security at nuclear facilities; • limited availability of fuel supply and our reliance on licensed fuel assemblies from primarily one NRC-licensed supplier of Callaway Energy Center’s assemblies; • costly and extended outages for scheduled or unscheduled maintenance and refueling; • uncertainties about the technological and financial aspects of decommissioning nuclear facilities at the end of their licensed lives; • the ability to continue to attract and maintain qualified labor to operate the Callaway Energy Center; • the adverse effect of poor market performance and other economic factors on the asset values of nuclear decommissioning trust funds and the corresponding increase, upon MoPSC approval, in customer rates to fund the estimated decommissioning costs; and • potential adverse effects of a natural disaster, acts of sabotage or terrorism, including a cyber attack, or any accident leading to a radiological release.
Depending upon the scope of modifications ultimately required by state regulators, capital expenditures associated with these modifications could be significant. The management and disposal of coal ash is regulated under the Resource Conservation and Recovery Act and the CCR Rule, which require the closure of our surface impoundments at Ameren Missouri’s coal-fired energy centers.
Depending upon the scope of modifications ultimately required by state regulators, capital expenditures associated with these modifications could be significant. The management and disposal of coal ash is regulated under the Resource Conservation and Recovery Act and the CCR Rule, which require the closure of surface impoundments at Ameren Missouri’s coal-fired energy centers.
In addition, new regulations could require changes in our security measures and result in increased costs. The occurrence of any of these events could adversely affect our results of operations, financial position, and liquidity. Our businesses are dependent on our ability to access the capital markets successfully.
In addition, new regulations could require changes in our security measures and result in increased costs. The occurrence of any of these events could adversely affect our results of operations, financial position, and liquidity. Our businesses are dependent on our ability to access the capital and credit markets successfully.
Failure to comply with these laws could result in the closing of facilities, alterations to the manner in which these facilities operate, increased operating costs, delays and increased costs of building new facilities, or exposure to fines and liabilities.
Failure to comply with these laws could result in the closing of facilities, alterations to the manner in which these facilities operate, increased operating costs, delays and increased costs of building new facilities, and exposure to fines and liabilities.
The higher maintenance costs associated with aging infrastructure and capital expenditures for new or replacement infrastructure, compounded by increasing interest rates and inflationary pressures, could cause additional rate volatility for our customers, resistance by our regulators to allow customer rate increases, and/or regulatory lag in some of our jurisdictions, any of which could adversely affect our results of operations, financial position, and liquidity.
The higher maintenance costs associated with aging infrastructure and capital expenditures for new or replacement infrastructure, compounded by high interest rates and inflationary pressures, could cause additional rate volatility for our customers, resistance by our regulators to allow customer rate increases, and/or regulatory lag in some of our jurisdictions, any of which could adversely affect our results of operations, financial position, and liquidity.
In addition, the EPA has announced plans to implement new climate change programs, including potential regulation of greenhouse gas emissions targeting the utility industry. As a result of our diverse fuel portfolio, our emissions of greenhouse gases vary among our energy centers, but coal-fired power plants are significant sources of CO 2 emissions.
In addition, the EPA has announced plans to implement new climate change programs, including potential regulation of greenhouse gas emissions from the utility industry. As a result of our diverse fuel portfolio, our emissions of greenhouse gases vary among our energy centers, but coal-fired power plants are significant sources of CO 2 emissions.
Such environmental laws address air emissions; discharges to water bodies; the storage, handling and disposal of hazardous substances and waste materials; siting and land use requirements; and potential ecological impacts. Complex and lengthy processes are required to obtain and renew approvals, permits, and licenses for new, existing, or modified facilities.
Such environmental laws address air emissions; discharges to water bodies; the storage, handling and disposal of hazardous substances and waste materials; siting and land use requirements; and potential ecological impacts. Complex and lengthy processes are required to obtain and renew approvals, permits, and licenses for new, existing, or modified energy-related facilities.
In addition to system reliability issues, the success of modernization efforts, our ability to safeguard sensitive customer information and protect our systems from cyber attacks, and other actions can affect customer satisfaction. The level of rates, the timing and magnitude of rate increases, and the volatility of rates can also affect regulator and customer satisfaction.
In addition to system reliability issues, the success of modernization efforts, our ability to safeguard sensitive customer information and protect our systems from physical or cyber attacks, and other actions can affect customer satisfaction. The level of rates, the timing and magnitude of rate increases, and the volatility of rates can also affect regulator and customer satisfaction.
In addition, these inflationary pressures and increasing interest rates could adversely affect our customers’ usage of, or payment for, our services. Additionally, volatility in the commodities market could increase collateral postings and prepayments. Also, market volatility could significantly affect the investment performance of Ameren’s COLI.
In addition, these inflationary pressures and high interest rates could adversely affect our customers’ usage of, or payment for, our services. Additionally, volatility in the commodities market could increase collateral postings and prepayments. Also, market volatility could significantly affect the investment performance of Ameren’s COLI.
The FERC also conducts audits and reviews of Ameren Missouri’s, Ameren Illinois’, and ATXI’s accounting records to assess the accuracy of their respective formula ratemaking process, and it can require refunds to customers for previously billed amounts, with interest.
The FERC also conducts audits and reviews of Ameren Missouri’s, Ameren Illinois’, and ATXI’s accounting records to assess the accuracy of their respective formula ratemaking process, and it can require refunds to be issued to customers for previously billed amounts, with interest.
Regulations implementing the Clean Water Act govern both intake and discharges of water, as well as evaluation of the ecological and biological impact of our operations and could require modifications to water intake structures or more stringent limitations on wastewater discharges.
Regulations implementing the Clean Water Act govern both intake and discharges of water, as well as evaluation of the ecological and biological impact of those operations, and could require modifications to water intake structures or more stringent limitations on wastewater discharges.
Certain variations from forecasted costs would be excluded from the reconciliation cap, including those associated with major storms; new business and facility relocations; changes in the timing of certain expenditures or investments into or out of the applicable calendar year; and changes in interest rates, income taxes, taxes other than income taxes, pension and other post-retirement benefits costs, and amortization of certain assets.
Certain variations from forecasted costs are excluded from the reconciliation cap, including those associated with major storms; new business and facility relocations; changes in the timing of certain expenditures or investments into or out of the applicable calendar year; and changes in interest rates, income taxes, taxes other than income taxes, pension and other post-retirement benefits costs, and amortization of certain assets.
We are subject to employee work force factors that could adversely affect our operations. Our businesses depend upon our ability to employ and retain key officers and other skilled professional and technical employees. Certain specialized knowledge that focuses on skilled-craft and STEM-related disciplines is required to construct and operate generation, transmission, and distribution assets.
We are subject to employee workforce factors that could adversely affect our operations. Our businesses depend upon our ability to employ and retain key officers and other skilled professional and technical employees. Certain specialized knowledge that focuses on skilled-craft and STEM-related disciplines is required to construct and operate generation, transmission, and distribution assets.
If customers, investors, legislators, regulators, or creditors have or develop a negative opinion of us and our utility services, this could result in increased costs associated with regulatory oversight and could affect the ROEs we are allowed to earn, as well as the access to, and 29 Table of Contents the cost of, capital.
If customers, investors, legislators, regulators, or creditors have or develop a negative opinion of us and our utility services, this could result in increased costs associated with regulatory oversight and could affect the ROEs we are allowed to earn, as well as the access to, and the cost of, capital.
Additionally, negative perceptions or publicity resulting from increasing scrutiny of ESG practices could negatively impact our reputation, investment in our common stock, or our access to capital markets.
Additionally, negative perceptions or publicity resulting from increasing scrutiny of ESG practices could negatively impact our reputation, investment in our common stock, or our access to capital and credit markets.
The law authorizes the ICC to initiate an investigation into how customer funds were used if ethical misconduct is determined to have occurred at an Illinois utility, potentially requiring the utility to issue refunds and imposing a potential penalty of up to $0.5 million per violation.
The law authorizes the ICC to initiate an investigation into how customer funds were used if a violation of the law is determined to have occurred at an Illinois utility, potentially requiring the utility to issue refunds and imposing a penalty of up to $0.5 million per violation.
These factors include depressed economic conditions, a recession, 30 Table of Contents increasing interest rates, inflation, sanctions, trade restrictions, political instability, war, terrorism, and extreme volatility in the debt, equity, or credit markets. Any adverse change in our credit ratings could reduce access to capital and trigger collateral postings and prepayments.
These factors include depressed economic conditions, a recession, increasing interest rates, inflation, sanctions, trade restrictions, political instability, war, terrorism, and extreme volatility in the debt, equity, or credit markets. Any adverse change in our credit ratings could reduce access to capital and trigger collateral postings and prepayments.
Assumptions related to future costs, returns on investments, interest rates, timing of employee retirements, and mortality, as well as other actuarial matters, have a significant impact on our customers’ rates and our plan funding requirements. Ameren’s total pension and postretirement benefit plans were overfunded by $377 million as of December 31, 2022.
Assumptions related to future costs, returns on investments, interest rates, timing of employee retirements, and mortality, as well as other actuarial matters, have a significant impact on our customers’ rates and our plan funding requirements. Ameren’s total pension and postretirement benefit plans were overfunded by $551 million as of December 31, 2023.
The location of 27 Table of Contents transmission and distribution mains and storage facilities near populated areas, including residential areas, business centers, industrial sites, and other public gathering places, could increase the level of damages resulting from these risks.
The location of transmission and distribution mains and storage facilities near populated areas, including residential areas, business centers, industrial sites, and other public gathering places, could increase the level of damages resulting from these risks.
The frequency and duration of customer outages are among the IEIMA and IETL performance standards. Any failure to achieve these standards will result in a reduction in Ameren Illinois’ allowed ROE on electric distribution assets.
The frequency and duration of customer outages are among the CEJA performance standards. Any failure to achieve these standards will result in a reduction in Ameren Illinois’ allowed ROE on electric distribution assets.
Under the IRA, a 15% minimum tax on adjusted financial statement income, as defined in the law, is assessed against corporations whose average annual adjusted financial statement income exceeds $1 billion for three consecutive preceding tax years, effective for tax 28 Table of Contents years beginning after December 31, 2022.
Under the IRA, a 15% minimum tax on adjusted financial statement income, as defined in the law, is assessed against corporations whose average annual adjusted financial statement income exceeds $1 billion for three consecutive preceding tax years effective for tax years beginning after December 31, 2022.
The MYRP also allows Ameren Illinois to reconcile its actual revenue requirement, as adjusted for certain cost variations, to ICC-approved electric distribution service rates on an annual basis, subject to a reconciliation cap. The reconciliation cap limits the annual adjustment to 105% of the annual revenue requirement approved by the ICC.
Under the MYRP, Ameren Illinois will reconcile its actual revenue requirement, as adjusted for certain cost variations, to ICC-approved electric distribution service rates on an annual basis, subject to a reconciliation cap. The reconciliation cap limits the annual adjustment to 105% of the annual revenue requirement approved by the ICC.
Operation of electric generation, transmission, and distribution facilities involves many risks, including: • facility shutdowns due to operator error, or a failure of equipment or processes; • longer-than-anticipated maintenance outages; • failures of equipment that can result in unanticipated liabilities or unplanned outages; • aging infrastructure that may require significant expenditures to operate and maintain; • lack of adequate water required for cooling plant operations and to operate hydorelectric energy centers; • labor disputes; • disruptions in the delivery of electricity to our customers; • inability to maintain reliability of our electric utility services as coal-fired energy centers are retired and renewable energy generation is placed in service; • disruptions to the global supply chain as a result of shortages for labor, materials, or equipment, international trade relations, delivery delays, economic pressures, including increased interest rates and inflation, and the impact of COVID-19, among other things; • suppliers and contractors who do not perform as required under their contracts, including those obligations that are affected by supply chain disruptions; • failure of other operators’ facilities and the effect of that failure on our electric system and customers; • inability to comply with regulatory or permit requirements, including those relating to environmental laws; • handling, storage, and disposition of CCR; • unusual or adverse weather conditions or other natural disasters, including those that may result from climate change, such as severe storms, droughts, floods, tornadoes, earthquakes, icing, sustained high or low temperatures, solar flares, and electromagnetic pulses; • the level of wind and solar resources; • inability to operate wind generation facilities at full capacity resulting from requirements to protect natural resources, including wildlife; • the occurrence of catastrophic events such as fires, explosions, acts of sabotage, which have increased in frequency and severity within the utility industry, acts of terrorism, civil unrest, pandemic health events, including the COVID-19 pandemic, or other similar events; • accidents that might result in injury or loss of life, extensive property damage, or environmental damage; • ineffective vegetation management programs; • cybersecurity risks, including loss of operational control of Ameren Missouri’s energy centers and our transmission and distribution systems and loss of data, including sensitive customer, employee, financial, and operating system information, through insider or outsider actions; • limitations on amounts of insurance available to cover losses that might arise in connection with operating our electric generation, transmission, and distribution facilities; • inability to implement or maintain information systems; • failure to keep pace with and the ability to adapt to rapid technological change; and • other unanticipated operations and maintenance expenses and liabilities. 26 Table of Contents The foregoing risks could affect the controls and operations of our facilities or impede our ability to meet regulatory requirements, which could increase operating costs, increase our capital requirements and costs, reduce our revenues, or have an adverse effect on our liquidity.
Operation of electric generation, transmission, and distribution facilities involves many risks, including: • facility shutdowns due to operator error, or a failure of equipment or processes; • longer-than-anticipated maintenance outages; • failures of equipment that can result in unanticipated liabilities or unplanned outages; • aging infrastructure that may require significant expenditures to operate and maintain; • lack of adequate water required for cooling plant operations and to operate hydroelectric energy centers; • labor disputes; • disruptions in the delivery of electricity to our customers; • inability to maintain reliability of our electric utility services as coal-fired energy centers are retired and renewable energy generation is placed in service; • disruptions to the global supply chain as a result of shortages for labor, materials, or equipment, international trade relations, geopolitical conflict, delivery delays, economic pressures, including increased interest rates and inflation, among other things; • suppliers and contractors who do not perform as required under their contracts, including those obligations that are affected by supply chain disruptions; • failure of other operators’ facilities and the effect of that failure on our electric system and customers; • inability to comply with regulatory requirements or obtain permits, including those relating to environmental laws; • handling, storage, and disposition of CCR; • unusual or adverse weather conditions or other natural disasters, including those that may result from climate change, such as severe storms, droughts, floods, tornadoes, earthquakes, icing, sustained high or low temperatures, solar flares, and electromagnetic pulses; • the level of wind and solar resources; • inability to operate wind generation facilities at full capacity resulting from requirements to protect natural resources, including wildlife; • the occurrence of catastrophic events such as fires, explosions, acts of sabotage, which have increased in frequency and severity within the utility industry, acts of terrorism, civil unrest, pandemic health events, or other similar events; • accidents that might result in injury or loss of life, extensive property damage, or environmental damage; • ineffective vegetation management programs; • cybersecurity risks, including loss of operational control of Ameren Missouri’s energy centers and our transmission and distribution systems and loss of data, including sensitive customer, employee, financial, and operating system information, through insider or outsider actions; • limitations on amounts of insurance available to cover losses that might arise in connection with operating our electric generation, transmission, and distribution facilities; • inability to implement or maintain information systems; • failure to keep pace with and the ability to adapt to rapid technological change; and • other unanticipated operations and maintenance expenses and liabilities.
Our ability to successfully execute our strategic plan, including the transition of Ameren Missouri’s generation fleet and achievement of the carbon emission reduction targets outlined in the 2022 Change to the 2020 IRP, may affect customers’, investors’, legislators’, regulators’, and creditors’ opinions and actions.
Our ability to successfully execute our strategic plan, including the transition of Ameren Missouri’s generation fleet and achievement of the carbon emission reduction targets outlined in the 2023 IRP, may affect customers’, investors’, legislators’, regulators’, and creditors’ opinions and actions.
Cyber attacks could include viruses, malicious or destructive code, phishing attacks, denial of service attacks, supply chain attacks, ransomware and other extortion-based attacks, improper access by third parties, attacks on email systems, and attacks leading to data loss, operational control, or exploitation of vulnerabilities specific to internally developed systems or to those provided and/or maintained by our suppliers, among various other security breaches.
Cyber attacks could include viruses, malicious or destructive code, phishing attacks, denial of service attacks, supply chain attacks, ransomware and other extortion-based attacks, improper access by third parties, attacks on email systems, and attacks leading to data loss, operational control, or exploitation of vulnerabilities specific to internally developed systems or to those provided and/or maintained by our suppliers, including those attacks arising from or generated by artificial intelligence, among various other security breaches.
OPERATIONAL RISKS The construction and acquisition of, and capital improvements to, electric and natural gas utility infrastructure, along with Ameren Missouri’s ability to implement its Smart Energy Plan, which is aligned with its 2022 Change to the 2020 IRP, involve substantial risks.
OPERATIONAL RISKS The construction and acquisition of, and capital improvements to, electric and natural gas utility infrastructure, along with Ameren Missouri’s ability to implement its Smart Energy Plan, which is aligned with its 2023 IRP, involve substantial risks.
Our aging infrastructure may pose risks to system reliability and expose us to expedited or unplanned significant capital expenditures and operating costs. All of Ameren Missouri’s coal-fired energy centers were constructed prior to 1978, and the Callaway Energy Center began operating in 1984.
Our aging infrastructure may pose risks to system reliability and expose us to expedited or unplanned significant capital expenditures and operating costs. All of Ameren Missouri’s coal-fired energy centers were constructed prior to 1978, and the Callaway Energy Center 27 Table of Conten t s began operating in 1984.
Additional delays or disruptions in the delivery of coal, failure of our coal suppliers to provide adequate quantities or quality of coal, or lack of adequate inventories of coal, including low-sulfur coal used to comply with environmental regulations, could have adverse effects on Ameren Missouri’s electric generation operations.
Additional delays or disruptions in the delivery of coal, failure of our coal suppliers to provide adequate quantities or quality of coal, or lack of adequate inventories of coal, including low-sulfur coal used to comply with environmental regulations, 26 Table of Conten t s could have adverse effects on Ameren Missouri’s electric generation operations.
The Biden administration has a policy commitment regarding a reduction in greenhouse gas emissions for the United States, but rulemaking to achieve such reductions has not yet been implemented. Actions taken to implement the Paris Agreement could result in future additional greenhouse gas reduction requirements in the 24 Table of Contents United States.
The Biden administration made a policy commitment regarding a reduction in greenhouse gas emissions for the United States, but rulemaking to achieve such reductions has not yet been implemented. Actions taken to implement the Paris Agreement could result in future additional greenhouse gas reduction requirements in the United States.
These factors include, but are not limited to, the following: project management expertise; escalating costs and/or shortages for labor, materials, and equipment, including changes to tariffs on materials or government actions; the ability of suppliers, contractors, and developers to meet contractual commitments and timely complete projects; changes in the scope and timing of projects; the ability to obtain required regulatory, project, and permit approvals; the ability to obtain necessary rights-of-way, easements, and transmission connections at an acceptable cost in a timely fashion; unsatisfactory performance by the projects when completed; the inability to earn an adequate return on invested capital; the ability to raise capital on reasonable terms; and other events beyond our control, including construction delays due to weather.
These factors include, but are not limited to, the following: project management expertise; the ability of suppliers, contractors, and developers to meet contractual commitments and timely complete projects, which is dependent upon the availability of necessary labor, materials, and equipment; escalating costs, including but not limited to changes to tariffs on materials or government actions; changes in the scope and timing of projects; the ability to obtain required regulatory, project, and permit approvals; the ability to obtain necessary rights-of-way, easements, and transmission connection agreements at an acceptable cost in a timely fashion; unsatisfactory performance by the projects when completed; the inability to earn an adequate return on invested capital; the ability to raise capital on reasonable terms; geopolitical conflict and other events beyond our control, including construction delays due to weather.
Environmental regulations have a significant impact on the electric utility industry and compliance with these regulations could be costly for Ameren Missouri, which operates coal-fired power plants. As of December 31, 2022, Ameren Missouri’s coal-fired energy centers represented 9% and 17% of Ameren’s and Ameren Missouri’s rate base, respectively.
Environmental regulations have a significant impact on the electric utility industry and compliance with these regulations could be costly for Ameren Missouri, which operates coal-fired power plants. As of December 31, 2023, Ameren Missouri’s coal-fired energy centers represented 8% and 16% of Ameren’s and Ameren Missouri’s rate base, respectively.
Collectively, these regulations cover a variety of pollutants, such as SO 2 , particulate matter, NO x , mercury, toxic metals, and acid gases, and CO 2 emissions from new power plants.
Collectively, these regulations cover a variety of pollutants, such as SO 2 , particulate matter, NO x , mercury, toxic metals and acid gases, and CO 2 emissions.
Additionally, pursuant to the IETL, Illinois utilities are subject to new requirements and provisions related to ethical conduct and transparency, including submitting an annual ethics and compliance report to the ICC.
Additionally, pursuant to the CEJA, Illinois utilities are subject to requirements and provisions related to ethical conduct, including submitting an annual ethics and compliance report to the ICC.
These energy centers are utilized to support peak loads. Subject to conditions in the IETL, these energy centers may be allowed to exceed the emissions limits in order to maintain reliability of electric utility service. Ameren and Ameren Missouri have incurred, and expect to incur, significant costs with respect to environmental compliance and site remediation.
Subject to conditions in the CEJA, these energy centers may be allowed to exceed the emissions limits in order to maintain reliability of electric utility service. Ameren and Ameren Missouri have incurred, and expect to incur, significant costs with respect to environmental compliance and site remediation.
These inflationary pressures, as well as increasing interest rates, could impact our ability to control costs, to make substantial investments in our businesses, to recover costs and investments, to earn our allowed ROEs within frameworks established by our regulators, and/or to maintain affordability of our services for our customers.
These inflationary pressures, as well as high interest rates, could impact our ability to control costs, to make substantial investments in our businesses, to recover costs and investments, to earn our allowed ROEs within 28 Table of Conten t s frameworks established by our regulators, and/or to maintain affordability of our services for our customers.
Beginning in 2024 through at least 2027, Ameren Illinois’ electric distribution rates will be established through an MYRP as discussed in the following risk factor, which will be based on estimated future costs and an applicable revenue requirement reconciliation, which may not allow for full recovery of actual costs due to a reconciliation cap.
Effective for rates beginning in 2024 through at least 2027, Ameren Illinois’ electric distribution rates will be established through an MYRP as discussed in the following risk factor. An MYRP includes a revenue requirement reconciliation, which may not allow for full recovery of actual costs due to a reconciliation cap.
Based on its assumptions at December 31, 2022, its investment performance in 2022, and its pension funding policy, Ameren does not expect to make material contributions in 2023 through 2025, and expects to make aggregate contributions of $170 million in 2026 and 2027.
Based on its assumptions at December 31, 2023, its investment performance in 2023, and its pension funding policy, Ameren does not expect to make material contributions in 2024 and 2025, and expects to make aggregate contributions of $120 million in 2026 through 2028.
The IETL resulted in changes to the regulatory framework applicable to Ameren Illinois’ electric distribution business by giving Ameren Illinois the option to file an MYRP with the ICC by mid-January 2023, with rates effective beginning in 2024, or establish future rates through a traditional regulatory rate review, among other things.
The CEJA resulted in changes to the regulatory framework applicable to Ameren Illinois’ electric distribution business by giving Ameren Illinois the option to file an MYRP with the ICC or establish future rates through a traditional regulatory rate review, among other things.
The law established a 2.5% annual limit on increases to the electric service revenue requirement used to set customer rates due to the inclusion of incremental PISA deferrals in the revenue requirement.
This law also established a 2.5% annual limit on increases to the electric service revenue requirement used to set customer rates, compared to the revenue requirement established in the immediately preceding rate order, due to the inclusion of incremental PISA deferrals in the revenue requirement.
An MYRP would establish rates for a four-year period, and Ameren Illinois has the option to file for an MYRP every four years. Ameren Illinois elected to file an MYRP in January 2023 for rates effective in 2024 through 2027 with the ICC.
An MYRP establishes rates for a four-year period, and Ameren Illinois has the option to file for an MYRP every four years. Ameren Illinois elected to file an MYRP for rates effective in 2024 through 2027.
If Ameren Illinois is unable to recover investments under the QIP or there is no other regulatory change, Ameren Illinois will be subject to increased regulatory lag on its natural gas infrastructure investments that are placed in service between regulatory rate reviews, which could adversely affect Ameren’s and Ameren Illinois’ investment plans and results of operations, financial position, and liquidity.
As a result of the expiration of the QIP, Ameren Illinois is subject to increased regulatory lag on its natural gas infrastructure investments that are placed in service between regulatory rate reviews, which could adversely affect Ameren’s and Ameren Illinois’ investment plans and results of operations, financial position, and liquidity.
Ameren Illinois’ natural gas rates established in those proceedings are 20 Table of Contents based on estimated future costs, revenues, and sales volumes.
Ameren Missouri’s electric and natural gas utility rates established in those proceedings 20 Table of Conten t s are primarily based on historical costs, revenues, and sales volumes. Ameren Illinois’ natural gas rates established in those proceedings are based on estimated future costs, revenues, and sales volumes.
Significant increases in prices of commodities, labor, services, materials, and supplies and other costs, including costs associated with our defined benefit retirement and postretirement plans, health care plans, and other employee benefits, could adversely affect our results of operations, financial position, or liquidity.
Significant increases in prices of labor, services, materials and supplies and other costs, including costs associated with our defined benefit retirement and postretirement plans, health care plans, and other employee benefits, could adversely affect our results of operations, financial position, or liquidity. A part of our core strategy focuses on disciplined cost management, including prudently monitoring all of our expenses.
Decisions by these entities are influenced by many factors, including the cost of providing service, the prudency of expenditures, the quality of service, regulatory staff knowledge and experience, customer intervention, and economic conditions, as well as social and political views. Decisions made by these governmental entities regarding customer rates are largely outside of our control.
The utility rates charged to customers are determined by governmental entities, including the MoPSC, the ICC, and the FERC. Decisions by these entities are influenced by many factors, including the cost of providing service, the prudency of expenditures, the quality of service, regulatory staff knowledge and experience, customer intervention, and economic conditions, as well as social and political views.
As a result of the election to use the PISA, Ameren Missouri’s electric service rates are subject to a rate cap through 2023. Effective 2024, Ameren Missouri’s electric service business is subject to a limitation on increasing the annual revenue requirement due to the inclusion of incremental PISA deferrals in the revenue requirement.
Ameren Illinois cannot predict the ultimate outcome of this regulatory proceeding. As a result of the election to use the PISA, effective in 2024, Ameren Missouri’s electric service business is subject to a limitation on increasing the annual revenue requirement due to the inclusion of incremental PISA deferrals in the revenue requirement.
Excessive costs to comply with future legislation or regulations related to climate change might force Ameren Missouri to close some coal-fired energy centers earlier than planned, which could lead to possible loss on abandonment and reduced revenues. As a result, mandatory limits could have a material adverse impact on Ameren’s and Ameren Missouri’s results of operations, financial position, and liquidity.
Excessive costs to comply with future legislation or regulations related to climate change might force Ameren Missouri to close some coal-fired energy centers earlier than planned, which could lead to possible loss on abandonment and reduced revenues.
Missouri Senate Bill 745 became effective on August 28, 2022. The law extended Ameren Missouri’s PISA election through December 2028 and allows for an additional extension through December 2033 if requested by Ameren Missouri and approved by the MoPSC, among other things.
Pursuant to a Missouri law that became effective in August 2022, Ameren Missouri’s PISA election was extended through December 2028 and an additional extension through December 2033 is allowed if requested by Ameren Missouri and approved by the MoPSC, among other things.
In July 2022, in response to an Ameren Missouri request for a final, binding reliability assessment, the MISO designated the Rush Island Energy Center as a system support resource and concluded that certain mitigation measures, including transmission upgrades, should occur before the energy center is retired.
The MISO designated the energy center as a system support resource in 2022 and concluded that certain reliability mitigation measures, including transmission upgrades, should occur before the energy center is retired. The Rush Island Energy Center began operating as a system support resource on September 1, 2022.
EPA, clarifying that there are limits on how the EPA may regulate greenhouse gases absent further direction from the United States Congress. The court concluded that emission caps designed to shift generation from fossil-fuel-fired power plants to renewable energy facilities would require specific congressional authorization and that such authorization had not been given under the Clean Air Act.
EPA, clarifying that there are limits on how the EPA may regulate greenhouse gases absent further direction from the United States Congress. The court concluded that the EPA’s proposed rules were designed to shift generation from fossil-fuel-fired power plants to renewable energy facilities, which was improper absent specific congressional authorization.
Ameren Illinois’ existing riders will remain effective and electric distribution service revenues will continue to be decoupled from sales volumes under the MYRP.
The reconciliation cap also excludes costs recovered outside of base rates through riders. Ameren Illinois’ existing riders remain effective and electric distribution service revenues continue to be decoupled from sales volumes under the MYRP.
Investments in Ameren’s rate-regulated operations are expected to be recoverable from customers, but they are subject to prudence reviews and are exposed to regulatory lag of varying degrees by jurisdiction. 25 Table of Contents Our ability to complete construction projects successfully within projected estimates, including schedule, performance, and/or cost, and to implement Ameren Missouri’s Smart Energy Plan, which may include acquisition of generation facilities after they are constructed, is contingent upon many factors and subject to substantial risks.
Our ability to complete construction projects successfully within projected estimates, including schedule, performance, and/or cost, and to implement Ameren Missouri’s Smart Energy Plan, which may include acquisition of generation facilities after they are constructed, is contingent upon many factors and subject to substantial risks.
The actual revenue requirement for a particular year would incorporate Ameren Illinois’ year-end rate base and actual capital structure for such year, provided that the common equity ratio in such capital structure may not exceed that approved by the ICC in the MYRP. In addition, the ICC will determine the ROE applicable to each year of the four-year period.
The actual revenue requirement for a particular year incorporates Ameren Illinois’ year-end rate base and actual capital structure for such year, provided that the resulting revenue requirement does not exceed the 105% reconciliation cap and the common equity ratio in such capital structure may not exceed that approved by the ICC in the MYRP.
Further, a significant portion of our work force is nearing retirement. As of December 31, 2022, approximately 25%, 25%, and 23% of Ameren’s, Ameren Missouri’s, and Ameren Illinois’ total employees were 55 years old or older, respectively.
Further, a significant portion of our work force is nearing retirement. As of December 31, 2023, approximately 23% of Ameren’s, Ameren Missouri’s, and Ameren Illinois’ total employees were 55 years old or older. We are also party to collective bargaining agreements that collectively represent about 46%, 58%, and 54% of Ameren’s, Ameren Missouri’s and Ameren Illinois’ total employees, respectively.
A part of our core strategy focuses on disciplined cost management, including prudently monitoring all of our expenses. However, we have observed inflationary pressures related to prices of commodities, labor, services, materials and supplies, and other costs. We are uncertain whether these inflationary pressures will continue and at what rate.
However, we have observed inflationary pressures related to prices of labor, services, materials and supplies, and other costs. We are uncertain whether these inflationary pressures will continue and at what rate.
The electric and natural gas rates that we are allowed to charge are determined through regulatory proceedings, which are subject to intervention and appeal. Rates are also subject to legislative actions, which are largely outside of our control. Certain events could prevent us from recovering our costs in a timely manner or from earning adequate returns on our investments.
The electric and natural gas rates that we are allowed to charge are determined through regulatory proceedings, which are subject to intervention and appeal. Rates are also subject to legislative actions, which are largely outside of our control.
Further reductions to emissions limits will become effective between 2030 and 2040, resulting in the closure of the Venice Energy Center by 2029. The reductions could also limit the operations of Ameren Missouri's four natural gas-fired energy centers located in the state of Illinois, and will result in their closure by 2040.
Ameren Missouri's natural gas-fired energy centers in Illinois are subject to annual limits on emissions, including CO 2 and NO x . Further reductions to emissions limits will become effective between 2030 and 2040, resulting in the closure of the Venice Energy Center by the end of 2029.
Additionally, increasing rates could result in regulatory or legislative actions, as well as competitive or political pressures, all of which could adversely affect our results of operations, financial position, and liquidity. Ameren Illinois is utilizing the IEIMA performance-based formula ratemaking framework to establish annual customer rates effective through 2023.
Additionally, increasing rates could result in regulatory or legislative actions, as well as competitive or political pressures, all of which could adversely affect our results of operations, financial position, and liquidity.
Additionally, private individuals may seek to enforce environmental laws against us. They could allege injury from exposure to hazardous materials, allege a failure to comply with environmental laws, seek to compel remediation of environmental contamination, or seek to recover damages resulting from that contamination.
Such properties include MGP sites, substations, and third-party sites, such as landfills. Additionally, individuals and non-governmental organizations may seek to enforce environmental laws against us, allege injury from exposure to hazardous materials, allege a failure to comply with environmental laws, seek to compel remediation of environmental contamination, or seek to recover damages resulting from purported contamination.
Based on its assessment of available legal, operational and regulatory alternatives, Ameren Missouri filed a motion in December 2021 with the district court to modify the remedy order to allow the retirement of the Rush Island Energy Center in advance of its previously expected useful life in lieu of installing a flue gas desulfurization system.
In September 2023, the district court granted Ameren Missouri’s request to modify the remedy order to allow the retirement of the Rush Island Energy Center in advance of its previously expected useful life in lieu of installing a flue gas desulfurization system.
Ameren Missouri’s electric and natural gas utility rates and Ameren Illinois’ natural gas utility rates are typically established in regulatory proceedings that take up to 11 months to complete. Ameren Missouri’s electric and natural gas utility rates established in those proceedings are primarily based on historical costs, revenues, and sales volumes.
These mechanisms could be changed or terminated. Ameren Missouri’s electric and natural gas utility rates and Ameren Illinois’ natural gas utility rates are typically established in regulatory proceedings that take up to 11 months to complete.
We estimate that we will invest up to $20.5 billion (Ameren Missouri – up to $10.8 billion; Ameren Illinois – up to $9.5 billion; ATXI – up to $0.2 billion) of capital expenditures from 2023 through 2027.
We estimate that we will invest up to $22.8 billion (Ameren Missouri – up to $13.5 billion; Ameren Illinois – up to $7.6 billion; ATXI – up to $1.7 billion) of capital expenditures from 2024 through 2028.
Ameren is targeting net-zero carbon emissions by 2045, as well as a 60% reduction by 2030 and an 85% reduction by 2040 based on 2005 levels. Ameren’s goals include both direct emissions from operations, as well as electricity usage at Ameren buildings, including other greenhouse gas emissions of methane, nitrous oxide, and sulfur hexafluoride.
Ameren’s goals include both direct emissions from operations (scope 1), as well as electricity usage at Ameren buildings (scope 2), including other greenhouse gas emissions of methane, nitrous oxide, and sulfur hexafluoride.
From time to time, our regulators may approve trackers, riders, or other recovery mechanisms that allow electric or natural gas rates to be adjusted without a traditional regulatory rate review. These mechanisms could be changed or terminated.
Rate orders are also subject to appeal, which creates additional uncertainty as to the rates that we will ultimately be allowed to charge for our services. From time to time, our regulators may approve trackers, riders, or other recovery mechanisms that allow electric or natural gas rates to be adjusted without a traditional regulatory rate review.
Deliveries from the Powder River Basin have occasionally been restricted because of rail congestion, staffing and equipment issues, infrastructure maintenance, derailments, weather, and supplier financial hardship.
Ameren Missouri owns and operates coal-fired energy centers. About 97% of Ameren Missouri’s coal is purchased from the Powder River Basin in Wyoming, which has a limited number of suppliers. Deliveries from the Powder River Basin have occasionally been restricted because of rail congestion, staffing and equipment issues, infrastructure maintenance, derailments, weather, and supplier financial hardship.
We are exposed to regulatory lag, including the impact of inflationary pressures, and cost disallowances to varying degrees by jurisdiction, which, if unmitigated, could adversely affect our results of operations, financial position, and liquidity. Rate orders are also subject to appeal, which creates additional uncertainty as to the rates that we will ultimately be allowed to charge for our services.
Decisions made by these governmental entities regarding customer rates are largely outside of our control. We are exposed to regulatory lag, including the impact of inflationary pressures, and cost disallowances to varying degrees by jurisdiction, which, if unmitigated, could adversely affect our results of operations, financial position, and liquidity.
In addition, government investigations relating to the importation of solar panel components could affect the cost and the availability of solar panel components. Any of these risks could result in higher costs, the inability to complete anticipated projects, or facility closures, and could adversely affect our results of operations, financial position, and liquidity.
Any of these risks could result in higher costs, the inability to complete anticipated projects, or facility closures, and could adversely affect our results of operations, financial position, and liquidity. Our electric generation, transmission, and distribution facilities are subject to operational risks. Our financial performance depends on the successful operation of electric generation, transmission, and distribution facilities.
The Ameren Illinois collective bargaining unit contracts expire in 2023 and 2026, which cover 8% and 92% of represented employees, respectively. Remote working arrangements could increase our data security risks, including loss of data related to sensitive customer, employee, financial, and operating system information, through insider or outsider actions.
Remote working arrangements could increase our data security risks, including loss of data 29 Table of Conten t s related to sensitive customer, employee, financial, and operating system information, through insider or outsider actions.
In January 2017, the district court issued a liability ruling against Ameren Missouri and, in September 2019, entered a remedy order.
In January 2017, the district court issued a liability ruling against Ameren Missouri and, in September 2019, entered a remedy order that required Ameren Missouri to install a flue gas desulfurization system at the Rush Island Energy Center and a dry sorbent injection system at the Labadie Energy Center.
Increased capital expenditures could cause incremental PISA deferrals to exceed the 2.5% limitation when it is effective, and such amounts exceeding the 2.5% limitation would be excluded from recovery under future revenue requirements. Failure to align capital investments under the 2.5% limitation could adversely affect Ameren’s and Ameren Missouri’s results of operations, financial position, and liquidity.
The limitation will be effective for revenue requirements approved by the MoPSC after January 1, 2024. Increased capital expenditures could cause incremental PISA deferrals to exceed the 2.5% limitation, and such amounts exceeding the 2.5% limitation would be excluded from recovery under future revenue requirements.
As of December 31, 2022, coal inventories at the Labadie and Sioux energy centers were below targeted levels due to transportation delays in 2022.
As of December 31, 2023, coal inventory at the Labadie Energy Center was below targeted levels and coal inventory at the Sioux Energy Center was at targeted levels.
The age of these energy centers increases the risks of unplanned outages, reduced generation output, and higher maintenance expense.
The age of these energy centers increases the risks of unplanned outages, reduced generation output, and higher maintenance expense. Also, as discussed above, Ameren Missouri expects to retire the Rush Island Energy Center by October 15, 2024.
Additionally, the use and handling of various chemicals or hazardous materials require release prevention plans and emergency response procedures. Further, we are subject to risks from changing or conflicting interpretations of existing laws, modification to existing laws, new laws, and new or modified permit terms.
Additionally, the use and handling of various chemicals or hazardous materials require release prevention plans and emergency response procedures.
We are also subject to liability under environmental laws that address the remediation of environmental contamination on property currently or formerly owned by us or by our predecessors, as well as property contaminated by hazardous substances that we generated. Such properties include MGP sites, substations, and third-party sites, such as landfills.
Further, we are subject to risks from changing or conflicting interpretations of existing laws, modifications to existing laws, new laws, new or modified permit terms, and enforcement of environmental laws and permits by federal, state, and local authorities. 22 Table of Conten t s We are also subject to liability under environmental laws that address the remediation of environmental contamination on property currently or formerly owned by us or by our predecessors, as well as property contaminated by hazardous substances that we generated.
With respect to its natural gas delivery service business, unless extended, Ameren Illinois’ QIP will expire after December 2023. The QIP provides Ameren Illinois with recovery of, and a return on, qualifying natural gas infrastructure investments that are placed in service between regulatory rate reviews. Infrastructure investments under the QIP earn a return at the applicable WACC.
In addition, reconciliation hearings to determine the accuracy and prudence of natural gas capital investments recovered under the QIP are still ongoing. The QIP expired in December 2023. Previously, it provided Ameren Illinois with recovery of, and a return on, qualifying natural gas infrastructure investments that were placed in service between regulatory rate reviews.
The rates that we are allowed to charge for our utility services significantly influence our results of operations, financial position, and liquidity. The electric and natural gas utility industry is highly regulated. The utility rates charged to customers are determined by governmental entities, including the MoPSC, the ICC, and the FERC.
Certain events could prevent us from recovering our costs in a timely manner or at all, or from earning adequate returns on our investments. The rates that we are allowed to charge for our utility services significantly influence our results of operations, financial position, and liquidity. The electric and natural gas utility industry is highly regulated.
The allowed ROE on energy-efficiency investments can be increased or decreased up to 200 basis points, depending on the achievement of annual energy savings goals. Any adjustments to the allowed ROE for energy-efficiency investments will depend on annual performance for a historical period relative to energy savings goals.
These performance metrics apply annually from 2024 through 2027 under the MYRP, and the impact of any incentives and penalties will be excluded from the reconciliation cap described above. In addition, the allowed ROE on energy-efficiency investments can be increased or decreased up to 200 basis points, depending on the achievement of annual energy savings goals.
We are also party to collective bargaining agreements that collectively represent about 47%, 59%, and 55% of Ameren’s, Ameren Missouri’s and Ameren Illinois’ total employees, respectively. The Ameren Missouri collective bargaining unit contracts expire in 2025 and 2026, which cover 4% and 96% of represented employees, respectively.
The Ameren Missouri collective bargaining unit contracts expire in 2025 and 2026, and cover 4% and 96% of represented employees, respectively. The Ameren Illinois collective bargaining unit contracts expire in 2026 and 2027, and cover 92% and 8% of represented employees, respectively.
Ameren Missouri is unable to predict the ultimate resolution of this matter; however, such resolution could have a material adverse effect on the results of operations, financial position, and liquidity of Ameren and Ameren Missouri. In June 2022, the United States Supreme Court issued its decision in West Virginia v.
If Ameren Missouri is not allowed to recover Rush Island Energy Center costs through securitization or if future rate reviews result in revenue reductions based on Ameren Missouri’s prior actions that resulted in the adverse ruling discussed above, it could have a material adverse effect on the results of operations, financial position, and liquidity of Ameren and Ameren Missouri. 23 Table of Conten t s In June 2022, the United States Supreme Court issued its decision in West Virginia v.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeHowever, changes to the retirement date are subject to a final judgment to be issued by the United States District Court for the Eastern District of Missouri regarding a September 2019 remedy order. For additional information, see Note 14 – Commitments and Contingencies under Part II, Item 8, of this report.
Biggest changeFor additional information, see NSR and Clean Air Act Litigation in Note 14 – Commitments and Contingencies under Part II, Item 8, of this report.
Charles County, Missouri 972,000 Total coal 4,522,000 Nuclear Callaway (f) Callaway County, Missouri 1,194,000 Hydroelectric Osage (f) Lakeside, Missouri 235,000 Keokuk Keokuk, Iowa 148,000 Total hydroelectric 383,000 Pumped-storage Taum Sauk (f) Reynolds County, Missouri 440,000 Wind High Prairie Renewable Adair and Schuyler Counties, Missouri 400,000 Atchison Renewable Atchison County, Missouri 298,800 Total wind 698,800 Natural gas (CTs) Audrain (g) Audrain County, Missouri 608,000 Venice (h) Venice, Illinois 489,000 Goose Creek (h) Piatt County, Illinois 438,000 Pinckneyville (h) Pinckneyville, Illinois 316,000 Raccoon Creek (h) Clay County, Illinois 304,000 Kinmundy (h) Kinmundy, Illinois 210,000 Peno Creek (g) Bowling Green, Missouri 172,000 Total natural gas 2,537,000 Oil (CTs) Fairgrounds (e) Jefferson City, Missouri 55,000 Mexico (e) Mexico, Missouri 54,000 Moberly (e) Moberly, Missouri 54,000 Moreau (e) Jefferson City, Missouri 54,000 Total oil 217,000 Methane gas (CT) Maryland Heights Maryland Heights, Missouri 9,000 Solar Montgomery County Montgomery County, Missouri 5,700 O’Fallon O’Fallon, Missouri 4,500 BJC St.
Charles County, Missouri 972,000 Total coal 4,522,000 Nuclear Callaway (e) Callaway County, Missouri 1,194,000 Hydroelectric Osage (e) Lakeside, Missouri 235,000 Keokuk Keokuk, Iowa 148,000 Total hydroelectric 383,000 Pumped-storage Taum Sauk (e) Reynolds County, Missouri 440,000 Wind High Prairie Renewable Adair and Schuyler Counties, Missouri 400,000 Atchison Renewable Atchison County, Missouri 298,800 Total wind 698,800 Natural gas (CTs) Audrain Audrain County, Missouri 608,000 Venice (f) Venice, Illinois 487,000 Goose Creek (f) Piatt County, Illinois 438,000 Pinckneyville (f) Pinckneyville, Illinois 316,000 Raccoon Creek (f) Clay County, Illinois 304,000 Kinmundy (f) Kinmundy, Illinois 210,000 Peno Creek Bowling Green, Missouri 172,000 Total natural gas 2,535,000 Oil (CTs) Fairgrounds (g) Jefferson City, Missouri 55,000 Mexico (g) Mexico, Missouri 54,000 Moberly (g) Moberly, Missouri 54,000 Moreau (g) Jefferson City, Missouri 54,000 Total oil 217,000 Methane gas (CT) Maryland Heights Maryland Heights, Missouri 9,000 Solar Montgomery County Montgomery County, Missouri 5,700 O’Fallon O’Fallon, Missouri 4,500 BJC St.
That property includes a portion of Ameren Missouri’s Osage Energy Center reservoir; certain facilities at Ameren Missouri’s Sioux Energy Center; most of Ameren Missouri’s High Prairie Renewable and Atchison Renewable energy centers; Ameren Missouri’s Maryland Heights, Lambert, and BJC energy centers; certain substations; and most transmission and distribution lines and natural gas mains.
That property includes a portion of Ameren Missouri’s Osage Energy Center reservoir; certain facilities at Ameren Missouri’s Sioux Energy Center; most of Ameren Missouri’s High Prairie Renewable and Atchison Renewable energy centers; Ameren Missouri’s BJC, Cape Girardeau, Lambert, and Maryland Heights energy centers; certain substations; and most transmission and distribution lines and natural gas mains.
See also Note 5 – Long-term Debt and Equity Financings and Note 14 – Commitments and Contingencies under Part II, Item 8, of this report. 31 Table of Contents The following table shows the anticipated capability of our energy centers at the time of the expected 2023 peak summer electrical demand for all energy centers owned as of December 31, 2022: Primary Fuel Source Energy Center Location Net Kilowatt Capability (a) Ameren Missouri: Coal Labadie (b) Franklin County, Missouri 2,372,000 Rush Island (c) Jefferson County, Missouri 1,178,000 Sioux (d) St.
See also Note 5 – Long-term Debt and Equity Financings and Note 14 – Commitments and Contingencies under Part II, Item 8, of this report. 31 Table of Conten t s The following table shows the anticipated capability of our energy centers at the time of the expected 2024 peak summer electrical demand for all energy centers owned as of December 31, 2023: Primary Fuel Source Energy Center Location Net Kilowatt Capability (a) Ameren Missouri: Coal Labadie (b) Franklin County, Missouri 2,372,000 Rush Island (c) Jefferson County, Missouri 1,178,000 Sioux (d) St.
The exceptions as of January 31, 2023 are as follows: • Certain property is situated on lands occupied under leases, easements, franchises, licenses, or permits.
The exceptions as of December 31, 2023 are as follows: • Certain property is situated on lands occupied under leases, easements, franchises, licenses, or permits.
Louis, Illinois 2,500 Total Ameren 10,017,400 (a) Net kilowatt capability, except for wind and solar generating facilities, is the generating capacity available for dispatch from the energy center into the electric transmission grid. Capability for wind and solar generating facilities represents nameplate capacity. This capacity is only attainable when wind/solar conditions are sufficiently available.
Louis, Illinois 2,500 Total Ameren 10,016,600 (a) Net kilowatt capability, except for wind and solar generating facilities, is the generating capacity available for dispatch from the energy center into the electric transmission grid. Capability for wind and solar generating facilities represents nameplate capacity. This capacity is only attainable when wind/solar conditions are sufficiently available.
Louis, Missouri 1,600 Cape Girardeau Cape Girardeau, Missouri 1,200 Lambert St. Louis County, Missouri 900 South St. Louis St. Louis, Missouri 200 Total solar 14,100 Total Ameren Missouri 10,014,900 Ameren Illinois: Solar East St. Louis East St.
Louis, Missouri 1,600 Cape Girardeau Cape Girardeau, Missouri 1,200 Lambert St. Louis County, Missouri 900 Other Solar (h) Various 1,400 Total solar 15,300 Total Ameren Missouri 10,014,100 Ameren Illinois: Solar East St. Louis East St.
Substantially all of the properties and plant of Ameren Missouri and Ameren Illinois are subject to the liens of the indentures securing their respective mortgage bonds. Ameren Missouri conveyed most of its Peno Creek CT Energy Center to the city of Bowling Green, Missouri through December 2022.
Substantially all of the properties and plant of Ameren Missouri and Ameren Illinois are subject to the liens of the indentures securing their respective mortgage bonds.
(d) As noted in the 2022 Change to the 2020 IRP, Ameren Missouri has requested to extend the retirement date of the Sioux Energy Center from 2028 to 2030, which is subject to the approval of a change in the asset’s depreciable life by the MoPSC in Ameren Missouri’s 2022 electric service regulatory rate review.
(d) As noted in the 2023 IRP, Ameren Missouri plans to extend the retirement date of the Sioux Energy Center from 2030 to 2032, which is subject to the approval of a change in depreciable lives of the energy center’s assets by the MoPSC.
The on-demand capability for wind and solar units is zero. (b) The Labadie Energy Center is scheduled to retire 1,186,000 kilowatts by 2036 and 1,186,000 kilowatts by 2042. (c) The Rush Island Energy Center is scheduled to retire by 2025 as noted in the 2022 Change to the 2020 IRP.
The on-demand capability for wind and solar units is zero. (b) The Labadie Energy Center is scheduled to retire 1,186,000 kilowatts by 2036 and 1,186,000 kilowatts by 2042. (c) The Rush Island Energy Center is scheduled to retire by October 15, 2024 per the remedy order of the United States District Court for the Eastern District of Missouri.
See Illinois Emissions Standards in Note 14 – Commitments and Contingencies under Part II, Item 8, of this report. 32 Table of Contents The following table presents in-service electric and natural gas utility-related properties for Ameren Missouri and Ameren Illinois as of December 31, 2022: Ameren Missouri Ameren Illinois Circuit miles of electric transmission lines (a) 3,126 4,716 Circuit miles of electric distribution lines 33,846 45,972 Percentage of circuit miles of electric distribution lines underground 24 % 16 % Miles of natural gas transmission and distribution mains 3,509 18,680 Underground natural gas storage fields — 12 Total working capacity of underground natural gas storage fields in billion cubic feet — 24 (a) ATXI owns 545 circuit miles of electric transmission lines not reflected in this table.
(h) Includes five solar energy centers that each have a nameplate capacity of 500 kilowatts or less. 32 Table of Conten t s The following table presents in-service electric and natural gas utility-related properties for Ameren Missouri and Ameren Illinois as of December 31, 2023: Ameren Missouri Ameren Illinois Circuit miles of electric transmission lines (a) 3,140 4,761 Circuit miles of electric distribution lines 33,927 45,984 Percentage of circuit miles of electric distribution lines underground 24 % 16 % Miles of natural gas transmission and distribution mains 3,532 18,713 Underground natural gas storage fields — 12 Total working capacity of underground natural gas storage fields in billion cubic feet — 24 (a) ATXI owns 561 circuit miles of electric transmission lines not reflected in this table.
(h) The Venice Energy Center is scheduled to retire by 2029 and the Goose Creek, Pinckneyville, Raccoon Creek, and Kinmundy energy centers are scheduled to retire by 2040 as noted in the 2022 Change to the 2020 IRP.
(e) The operating licenses for the Callaway, Osage, and Taum Sauk energy centers expire in 2044, 2047, and 2044, respectively. (f) The Venice Energy Center is scheduled to retire by the end of 2029 and the Goose Creek, Pinckneyville, Raccoon Creek, and Kinmundy energy centers are scheduled to retire by the end of 2039 as noted in the 2023 IRP.
See Note 2 – Rate and Regulatory Matters under Part II, Item 8, of this report for additional information on Ameren Missouri’s request to extend the retirement date of the Sioux Energy Center. (e) The Fairgrounds, Mexico, Moberly, and Moreau energy centers are scheduled to be retired by 2026 as noted in the 2020 IRP.
See Illinois Emissions Standards in Note 14 – Commitments and Contingencies under Part II, Item 8, of this report. (g) The Fairgrounds, Mexico, Moberly, and Moreau energy centers are scheduled to be retired by the end of 2029 as noted in the 2023 IRP.
Removed
(f) The operating licenses for the Callaway, Osage, and Taum Sauk energy centers expire in 2044, 2047, and 2044, respectively. (g) There were economic development arrangements applicable to these CTs, as discussed below.
Removed
Ameren Missouri had rights and obligations as the operator of the energy center under a long-term agreement with the city of Bowling Green. Under the terms of this agreement, Ameren Missouri was responsible for all operation and maintenance at the energy center.
Removed
Ownership of the energy center transferred to Ameren Missouri in December 2022, at which time the property, plant, and equipment became subject to the lien of the Ameren Missouri mortgage bond indenture. Ameren Missouri operates a CT energy center located in Audrain County, Missouri.
Removed
Ameren Missouri had rights and obligations as the operator of the energy center under a long-term agreement with Audrain County. Under the terms of this agreement, Ameren Missouri was responsible for all operation and maintenance at the energy center.
Removed
While the agreement was scheduled to expire in December 2023, Ameren Missouri and Audrain County mutually agreed to terminate the agreement in January 2023. Ownership of the energy center was transferred to Ameren Missouri in January 2023, at which time the property, plant, and equipment became subject to the lien of the Ameren Missouri mortgage bond indenture.
Removed
See Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of this report for additional information for both agreements associated with the Peno Creek CT and Audrain County CT energy centers.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changePursuant to Item 103(c)(3)(iii) of Regulation S-K, our policy is to disclose environmental proceedings to which a governmental entity is a party if we reasonably believe such proceedings will result in monetary sanctions of $1 million or more. 33 Table of Contents
Biggest changePursuant to Item 103(c)(3)(iii) of Regulation S-K, our policy is to disclose environmental proceedings to which a governmental entity is a party if we reasonably believe such proceedings will result in monetary sanctions of $1 million or more.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeShaw 50 Senior Vice President, Finance, and Chief Accounting Officer; Ameren August 2021 – Present Senior Vice President, Regulatory Affairs and Financial Services; Ameren Illinois September 2019 – August 2021 Vice President, Regulatory Affairs and Financial Services; Ameren Illinois July 2018 – August 2019 Vice President, Internal Audit; Ameren June 2014 – July 2018 (a) Elected President of Ameren in February 2014, Chief Executive Officer of Ameren in April 2014, and Chairman of Ameren in July 2014. 34 Table of Contents SUBSIDIARIES: Name Age Positions Period Bhavani Amirthalingam 47 Senior Vice President and Chief Digital Information Officer; Ameren Services March 2018 (a) – Present Mark C.
Biggest changeShaw 51 Senior Vice President, Finance, and Chief Accounting Officer; Ameren August 2021 – Present Senior Vice President, Regulatory Affairs and Financial Services; Ameren Illinois September 2019 – August 2021 Vice President, Regulatory Affairs and Financial Services; Ameren Illinois July 2018 – August 2019 (a) Elected President and Chief Executive Officer of Ameren in January 2022, and Chairman of Ameren in November 2023. 34 Table of Conten t s SUBSIDIARIES: Name Age Positions Period Bhavani Amirthalingam 48 Executive Vice President and Chief Customer and Technology Officer; Ameren Services March 2023 – Present Senior Vice President and Chief Digital Information Officer; Ameren Services March 2018 – February 2023 Mark C.
Except as noted, the above-named executive officers have been employed by an Ameren company for more than five years in executive or management positions. 35 Table of Contents PART II
Except as noted, the above-named executive officers have been employed by an Ameren company for more than five years in executive or management positions. 35 Table of Conten t s PART II
Birk 58 Chairman and President; Ameren Missouri January 2022 – Present Senior Vice President, Customer and Power Operations; Ameren Missouri October 2017 – January 2022 Fadi M. Diya 60 Senior Vice President and Chief Nuclear Officer; Ameren Missouri January 2014 – Present Mark C.
Birk 59 Chairman and President; Ameren Missouri January 2022 – Present Senior Vice President, Customer and Power Operations; Ameren Missouri October 2017 – January 2022 Fadi M. Diya 61 Senior Vice President and Chief Nuclear Officer; Ameren Missouri January 2014 – Present Mark C.
Mizell 61 Vice President, Chief Sustainability, Diversity, & Philanthropy Officer; Ameren Services March 2022 – Present Vice President, Innovation, and Chief Sustainability Officer; Ameren Services January 2021 – March 2022 Vice President, Sustainability and Electrification; Ameren Services June 2019 – January 2021 Senior Director, Corporate Social Responsibility; Ameren Services March 2018 – June 2019 Director, Diversity, Equity and Inclusion; Ameren Services October 2015 – March 2018 Shawn E.
Mizell 62 Senior Vice President and Chief Sustainability, Diversity, & Philanthropy Officer; Ameren Services March 2023 – Present Vice President, Chief Sustainability, Diversity, & Philanthropy Officer; Ameren Services March 2022 – February 2023 Vice President, Innovation, and Chief Sustainability Officer; Ameren Services January 2021 – March 2022 Vice President, Sustainability and Electrification; Ameren Services June 2019 – January 2021 Senior Director, Corporate Social Responsibility; Ameren Services March 2018 – June 2019 Shawn E.
Moehn 53 Executive Vice President and Chief Financial Officer; Ameren December 2019 – Present Chairman and President; Ameren Services December 2019 – Present Chairman and President; Ameren Missouri April 2014 – December 2019 Chonda J.
Moehn 54 Senior Executive Vice President and Chief Financial Officer; Ameren March 2023 – Present Chairman and President; Ameren Services December 2019 – Present Executive Vice President and Chief Financial Officer; Ameren December 2019 – February 2023 Chairman and President; Ameren Missouri April 2014 – December 2019 Chonda J.
Lindgren 55 Senior Vice President, Corporate Communications, and Chief Human Resources Officer; Ameren Services September 2015 – Present Gwendolyn G.
Lindgren 56 Executive Vice President, Corporate Communications, and Chief Human Resources Officer; Ameren Services March 2023 – Present Senior Vice President, Corporate Communications, and Chief Human Resources Officer; Ameren Services September 2015 – February 2023 Gwendolyn G.
INFORMATION ABOUT OUR EXECUTIVE OFFICERS: The executive officers of the Ameren Companies, including major subsidiaries, are listed below, along with their ages as of December 31, 2022, all their positions and offices held with the Ameren Companies as of February 21, 2023, and their tenures as officers, and their titles for at least the last five years.
MINE SAFETY DISCLOSURES Not applicable. 33 Table of Conten t s INFORMATION ABOUT OUR EXECUTIVE OFFICERS: The executive officers of the Ameren Companies, including major subsidiaries, are listed below, along with their ages as of December 31, 2023, all their positions and offices held with the Ameren Companies as of February 29, 2024, and their tenures as officers, and their titles for at least the last five years.
Lyons, Jr. 56 President and Chief Executive Officer; Ameren January 2022 – Present Chairman and President; Ameren Missouri December 2019 – January 2022 Chairman and President; Ameren Services March 2016 – December 2019 Executive Vice President and Chief Financial Officer; Ameren January 2013 – December 2019 Michael L.
AMEREN CORPORATION: Name Age Positions Period Martin J. Lyons, Jr. 57 Chairman, President, and Chief Executive Officer; Ameren January 2022 (a) – Present Chairman and President; Ameren Missouri December 2019 – January 2022 Chairman and President; Ameren Services March 2016 – December 2019 Executive Vice President and Chief Financial Officer; Ameren January 2013 – December 2019 Michael L.
Nwamu 51 Senior Vice President, General Counsel, and Secretary; Ameren August 2019 – Present Senior Vice President and Deputy General Counsel; Ameren Services January 2019 – August 2019 Vice President and Deputy General Counsel; Ameren Services September 2016 – January 2019 Theresa A.
Nwamu 52 Executive Vice President, General Counsel, and Secretary; Ameren March 2023 – Present Senior Vice President, General Counsel, and Secretary; Ameren August 2019 – February 2023 Senior Vice President and Deputy General Counsel; Ameren Services January 2019 – August 2019 Theresa A.
Schukar 61 Chairman and President; ATXI May 2017 – Present Leonard P. Singh 53 Chairman and President; Ameren Illinois August 2022 (b) – Present (a) Bhavani Amirthalingam served as the Chief Information Officer and Vice President North America for Schneider Electric SE from January 2015 to March 2018. (b) Leonard P.
Schukar 62 Chairman and President; ATXI May 2017 – Present Leonard P. Singh 54 Chairman and President; Ameren Illinois August 2022 (a) – Present (a) Leonard P.
Removed
AMEREN CORPORATION: Name Age Positions Period Warner L. Baxter 61 Executive Chairman; Ameren January 2022 – Present Chairman, President, and Chief Executive Officer; Ameren 2014 (a) – January 2022 Martin J.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeComparison of Five-Year Cumulative Return 36 Table of Contents December 31, 2017 2018 2019 2020 2021 2022 Ameren (AEE) $ 100.00 $ 113.98 $ 137.71 $ 143.59 $ 168.13 $ 172.40 S&P 500 Index 100.00 95.61 125.70 148.81 191.48 156.77 S&P 500 Utility Index 100.00 104.11 131.54 132.23 155.60 158.03 Philadelphia Utility Index 100.00 103.52 131.28 134.85 159.45 160.49 Ameren management cautions that the stock price performance shown above should not be considered indicative of future stock price performance.
Biggest changeComparison of Five-Year Cumulative Return 36 Table of Conten t s December 31, 2018 2019 2020 2021 2022 2023 Ameren (AEE) $ 100.00 $ 120.82 $ 125.98 $ 147.51 $ 151.26 $ 126.94 S&P 500 Index 100.00 131.47 155.65 200.29 163.98 207.04 S&P 500 Utility Index 100.00 126.35 127.01 149.46 151.79 141.05 Philadelphia Utility Index 100.00 126.82 130.27 154.03 155.03 140.83 Ameren management cautions that the stock price performance shown above should not be considered indicative of future stock price performance.
Ameren holds all outstanding common stock of Ameren Missouri and Ameren Illinois. Purchases of Equity Securities Ameren Corporation, Ameren Missouri, and Ameren Illinois did not purchase any equity securities reportable under Item 703 of Regulation S-K during the period from October 1, 2022, to December 31, 2022.
Ameren holds all outstanding common stock of Ameren Missouri and Ameren Illinois. Purchases of Equity Securities Ameren Corporation, Ameren Missouri, and Ameren Illinois did not purchase any equity securities reportable under Item 703 of Regulation S-K during the period from October 1, 2023, to December 31, 2023.
Performance Graph The following graph shows Ameren’s cumulative TSR during the five years ended December 31, 2022. The graph also shows the cumulative total returns of the S&P 500 Index, S&P 500 Utility Index, and the Philadelphia Utility Index. The S&P 500 Utility Index and the Philadelphia Utility Index are market capitalization-weighted indices of U.S. public utility companies.
Performance Graph The following graph shows Ameren’s cumulative TSR during the five years ended December 31, 2023. The graph also shows the cumulative total returns of the S&P 500 Index, S&P 500 Utility Index, and the Philadelphia Utility Index. The S&P 500 Utility Index and the Philadelphia Utility Index are market capitalization-weighted indices of U.S. public utility companies.
The comparison assumes that $100 was invested on December 31, 2017, in Ameren common stock and in each of the indices shown and that all of the dividends were reinvested.
The comparison assumes that $100 was invested on December 31, 2018, in Ameren common stock and in each of the indices shown and that all of the dividends were reinvested.
ITEM 5. MARKET FOR REGISTRANTS’ COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASE OF EQUITY SECURITIES Ameren’s common stock is listed on the NYSE (ticker symbol: AEE). Ameren common shareholders of record totaled 37,798 on January 31, 2023. There is no trading market for the common stock of Ameren Missouri and Ameren Illinois.
ITEM 5. MARKET FOR REGISTRANTS’ COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES Ameren’s common stock is listed on the NYSE (ticker symbol: AEE). Ameren common shareholders of record totaled 35,157 on January 31, 2024. There is no trading market for the common stock of Ameren Missouri and Ameren Illinois.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeChanges in and Disagreements with Accountants on Accounting and Financial Disclosure 161 Item 9A. Controls and Procedures 162 Item 9B. Other Information 162
Biggest changeChanges in and Disagreements with Accountants on Accounting and Financial Disclosure 160 Item 9A. Controls and Procedures 161 Item 9B. Other Information 161
Financial Statements and Supplementary Data 82 Ameren Corporation 88 Union Electric 92 Ameren Illinois 96 Note 1. Summary of Significant Accounting Policies 100 Note 2. Rate and Regulatory Matters 104 Note 3. Property, Plant, and Equipment, Net 116 Note 4. Short-term Debt and Liquidity 117 Note 5. Long-term Debt and Equity Financings 120 Note 6.
Financial Statements and Supplementary Data 82 Ameren Corporation 88 Union Electric 92 Ameren Illinois 96 Note 1. Summary of Significant Accounting Policies 100 Note 2. Rate and Regulatory Matters 105 Note 3. Property, Plant, and Equipment, Net 116 Note 4. Short-term Debt and Liquidity 117 Note 5. Long-term Debt and Equity Financings 120 Note 6.
Other Income, Net 127 Note 7. Derivative Financial Instruments 127 Note 8. Fair Value Measurements 129 Note 9. Callaway Energy Center 133 Note 10. Retirement Benefits 136 Note 11. Stock-based Compensation 142 Note 12. Income Taxes 144 Note 13. Related-party Transactions 147 Note 14. Commitments and Contingencies 150 Note 15. Supplemental Information 154 Note 16. Segment Information 157 Item 9.
Other Income, Net 127 Note 7. Derivative Financial Instruments 127 Note 8. Fair Value Measurements 130 Note 9. Callaway Energy Center 133 Note 10. Retirement Benefits 136 Note 11. Stock-based Compensation 142 Note 12. Income Taxes 144 Note 13. Related-party Transactions 147 Note 14. Commitments and Contingencies 150 Note 15. Supplemental Information 153 Note 16. Segment Information 156 Item 9.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeEarnings per share in 2022, compared with 2021, were favorably affected by: • increased rate base investments at Ameren Transmission and Ameren Illinois Electric Distribution and a higher recognized ROE due to a higher annual average of the monthly yields of the 30-year United States Treasury bonds at Ameren Illinois Electric Distribution, which increased revenues at these segments (23 cents per share); • increased electric retail sales at Ameren Missouri, primarily resulting from colder winter temperatures and warmer summer temperatures experienced in 2022 (estimated at 13 cents per share); • higher base rate revenues at Ameren Missouri pursuant to the December 2021 MoPSC electric rate order, partially offset by the amortization of previously deferred depreciation expense under the PISA and RESRAM, financing costs otherwise recoverable under the PISA and RESRAM, a higher base level of expenses, and the net recovery for amounts associated with the reduction in sales volumes resulting from MEEIA programs (10 cents per share); • increased Ameren Illinois Natural Gas earnings from investments in qualifying infrastructure recovered under the QIP and higher base rates, pursuant to the ICC’s January 2021 natural gas rate order (7 cents per share); • increased base rate revenues at Ameren Missouri for the inclusion of previously deferred interest charges pursuant to the December 2021 MoPSC electric rate order, partially offset by lower deferral of interest charges related to infrastructure investments associated with the PISA and RESRAM (6 cents per share); • increased electric retail sales at Ameren Missouri, excluding the estimated effects of weather, primarily due to increased sales volumes for commercial and residential customers (5 cents per share); 43 Table of Contents • a change in the method of earning MEEIA performance incentives from metrics-based to spend-based, which resulted in an increased level of MEEIA performance incentives due to the recognition of incentives from two program years in 2022, compared with one program year in 2021 (4 cents per share); • increased Ameren Missouri margins resulting from increased electric demand and customer charges, higher base rates pursuant to the December 2021 MoPSC natural gas rate order, and increased electric transmission service revenues (3 cents per share); • increased other income, net, primarily due to increased non-service cost components of net periodic benefit income not subject to formula rates or trackers largely due to a decrease in net actuarial losses (3 cents per share); and • the absence in 2022 of the FERC’s March 2021 order, primarily related to the historical recovery of materials and supplies inventories, which decreased Ameren Transmission revenues in 2021 (3 cents per share).
Biggest changeEarnings per share in 2023, compared with 2022, were favorably affected by: • increased rate base investments at Ameren Transmission and Ameren Illinois Electric Distribution and a higher recognized ROE due to a higher annual average of the monthly yields of the 30-year United States Treasury bonds at Ameren Illinois Electric Distribution, which increased revenues at these segments (25 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 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 (12 cents per share); • decreased other operations and maintenance expenses not subject to formula rates, riders, or trackers, including an increase in the cash surrender value of COLI, primarily at Ameren Missouri and Ameren Illinois Natural Gas (11 cents per share); • decreased income tax expense not subject to formula rates or riders due, in part, to decreased income tax expense recognized at Ameren (parent) because of changes in the state income taxes apportioned to Missouri and Illinois, reflecting changes in revenues, as well as the effect of favorable market returns on COLI, compared with unfavorable returns in the year-ago period (6 cents per share); • increased base rate revenues at Ameren Missouri for the inclusion of previously deferred PISA and RESRAM interest charges pursuant to the December 2021 and June 2023 MoPSC electric rate orders effective February 28, 2022, and July 9, 2023, respectively, partially offset by increased interest charges resulting from lower deferrals related to infrastructure investments associated with the PISA and RESRAM (6 cents per share); • decreased taxes other than income taxes, primarily at Ameren Missouri, largely resulting from employee retention tax credits received under the Coronavirus Aid, Relief, and Economic Security Act in 2023 (3 cents per share); • increased Ameren Illinois Natural Gas earnings from investments in qualifying infrastructure recovered under the QIP (3 cents per share); • increased other income, net, largely due to increased non-service cost components of net periodic benefit income not subject to formula rates or trackers (3 cents per share); and • recovery of previously incurred expenses at Ameren Illinois Electric Distribution (2 cents per share).
In July 2022, the MISO approved the first tranche of projects under the first phase of the roadmap. A portion of these projects were assigned to various utilities, of which Ameren was awarded projects that are estimated to cost approximately $1.8 billion, based on the MISO’s cost estimate.
In July 2022, the MISO approved the first tranche of projects under the first phase of the roadmap. A portion of these projects were assigned to various utilities, of which Ameren was awarded projects that are estimated to cost approximately $1.8 billion, based on the MISO’s cost estimate.
After assessing its 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 markets on reasonable terms.
After assessing its 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.
Ameren Missouri and Ameren Illinois will also seek new, or to maintain existing, legislative solutions to address regulatory lag and to support investment in their utility infrastructure for the benefit of their customers.
Ameren Missouri and Ameren Illinois will also seek new, or to maintain existing, regulatory and legislative solutions to address regulatory lag and to support investment in their utility infrastructure for the benefit of their customers.
In July 2022, the MISO approved the first tranche of projects under the first phase of the roadmap. A portion of these projects were assigned to various utilities, of which Ameren was awarded projects that are estimated to cost approximately $1.8 billion, based on the MISO’s cost estimate.
In July 2022, the MISO approved the first tranche of projects under the first phase of the roadmap. A portion of these projects were assigned to various utilities, of which Ameren was awarded projects that are estimated to cost approximately $1.8 billion, based on the MISO’s cost estimate.
See Note 10 – Retirement Benefits under Part II, Item 8, of this report. • Valuation inputs and assumptions used in the fair value measurements of plan assets, excluding those inputs that are readily observable • Discount rate • Cash balance plan interest crediting rate on certain plans • Future compensation increase assumption • Health care cost trend rates • Assumptions on the timing of employee retirements, terminations, benefit payments, and mortality • Ability to recover certain benefit plan costs from our customers • Changing market conditions that may affect investment and interest rate environments • Future rate of return on pension and other plan assets Basis for Judgment Ameren has defined benefit pension plans covering substantially all of its employees and has postretirement benefit plans covering non-union employees hired before October 2015 and union employees hired before January 2020.
See Note 10 – Retirement Benefits under Part II, Item 8, of this report. • Valuation inputs and assumptions used in the fair value measurements of plan assets, excluding those inputs that are readily observable • Discount rate • Cash balance plan interest crediting rate on certain plans • Future compensation increase • Health care cost trend rates • The timing of employee retirements, terminations, benefit payments, and mortality • Ability to recover certain benefit plan costs from our customers • Changing market conditions that may affect investment and interest rate environments • Future rate of return on pension and other plan assets Basis for Judgment Ameren has defined benefit pension plans covering substantially all of its employees and has postretirement benefit plans covering non-union employees hired before October 2015 and union employees hired before January 2020.
The following table presents the principal credit ratings of the Ameren Companies by Moody’s and S&P effective on the date of this report: Moody’s S&P Ameren: Issuer/corporate credit rating Baa1 BBB+ Senior unsecured debt Baa1 BBB Commercial paper P-2 A-2 Ameren Missouri: Issuer/corporate credit rating Baa1 BBB+ Secured debt A2 A Senior unsecured debt Baa1 Not Rated Commercial paper P-2 A-2 Ameren Illinois: Issuer/corporate credit rating A3 BBB+ Secured debt A1 A Senior unsecured debt A3 BBB+ Commercial paper P-2 A-2 ATXI: Issuer credit rating A2 Not Rated Senior unsecured debt A2 Not Rated A credit rating is not a recommendation to buy, sell, or hold securities.
The following table presents the principal credit ratings of the Ameren Companies by Moody’s and S&P effective on the date of this report: Moody’s S&P Ameren: Issuer/corporate credit rating Baa1 BBB+ Senior unsecured debt Baa1 BBB Commercial paper P-2 A-2 Ameren Missouri: Issuer/corporate credit rating Baa1 BBB+ Senior debt A2 A Senior unsecured debt Baa1 Not Rated Commercial paper P-2 A-2 Ameren Illinois: Issuer/corporate credit rating A3 BBB+ Senior debt A1 A Senior unsecured debt A3 BBB+ Commercial paper P-2 A-2 ATXI: Issuer credit rating A2 Not Rated Senior unsecured debt A2 Not Rated A credit rating is not a recommendation to buy, sell, or hold securities.
We consider access to short-term and long-term capital 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 markets, could negatively affect our ability to maintain and expand our businesses.
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.
In April 2021, the FERC issued a Supplemental Notice of Proposed Rulemaking, which proposes to modify the Notice of Proposed Rulemaking’s incentive for participation in an RTO by limiting this incentive for utilities that join an RTO to 50 basis points and only allowing them to earn the incentive for three years, among other things.
In April 2021, the FERC issued a Supplemental Notice of Proposed Rulemaking, which proposed to modify the Notice of Proposed Rulemaking’s incentive for participation in an RTO by limiting this incentive for utilities that join an RTO to 50 basis points and only allowing them to earn the incentive for three years, among other things.
The Biden administration has a policy commitment regarding a reduction in greenhouse gas emissions for the United States, but rulemaking to achieve such reductions has not yet been implemented. Actions taken to implement the Paris Agreement could result in future additional greenhouse gas reduction requirements in the United States.
The Biden administration made a policy commitment regarding a reduction in greenhouse gas emissions for the United States, but rulemaking to achieve such reductions has not yet been implemented. Actions taken to implement the Paris Agreement could result in future additional greenhouse gas reduction requirements in the United States.
If a given year’s revenue requirement varies from the amount collected from customers, an adjustment is made to electric operating revenues with an offset to a regulatory asset or liability to reflect that year’s actual revenue requirement, independent of actual sales volumes.
If a given year’s revenue amount collected from customers varies from the approved revenue requirement, an adjustment is made to electric operating revenues with an offset to a regulatory asset or liability to reflect that year’s actual revenue requirement, independent of actual sales volumes.
However, events beyond Ameren’s, Ameren Missouri’s, and Ameren Illinois’ control may create uncertainty in the capital markets or make access to the capital markets uncertain or limited. Such events could increase our cost of capital and adversely affect our ability to access the capital markets.
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.
In addition to presenting results of operations and earnings amounts in total, we present certain information in cents per diluted share. These amounts reflect factors that directly affect Ameren’s earnings.
In addition to presenting results of operations and earnings amounts in total, we present certain information in cents per share. These amounts reflect factors that directly affect Ameren’s earnings.
In addition, the plan includes a performance incentive that provides Ameren Missouri an opportunity to earn additional revenues by achieving certain customer energy-efficiency goals.
In addition, the plan includes a performance incentive that provides Ameren Missouri an opportunity to earn revenues by achieving certain customer energy-efficiency goals.
See Note 12 – Income Taxes under Part II, Item 8, of this report for additional information on the IRA and the amount of deferred income taxes recorded at December 31, 2022. Accounting Estimate Uncertainties Affecting Application Accounting for Asset Retirement Obligations We record the estimated fair value of legal obligations associated with the retirement of tangible long-lived assets.
See Note 12 – Income Taxes under Part II, Item 8, of this report for additional information on the IRA and the amount of deferred income taxes recorded at December 31, 2023. Accounting Estimate Uncertainties Affecting Application Accounting for Asset Retirement Obligations We record the estimated fair value of legal obligations associated with the retirement of tangible long-lived assets.
The phase-out is triggered when greenhouse gas emissions from the electric generation industry are reduced by at least 75% from the annual 2022 emission rate or at the beginning of 2033, whichever is later. The law allows for transferability to an unrelated party for cash of certain tax credits generated after 2022.
The phase-out is triggered when greenhouse gas emissions from the electric generation industry are reduced by at least 75% from the annual 2022 emission rate or at the beginning of 2033, whichever is later. The law allows for transferability to an unrelated party for cash of up to 100% of certain tax credits generated after 2022.
In February 2023, Ameren Missouri filed an update to its Smart Energy Plan with the MoPSC, which includes a five-year capital investment overview with a detailed one-year plan for 2023. The plan is designed to upgrade Ameren Missouri’s electric infrastructure and includes investments that will upgrade the grid and accommodate more renewable energy.
In February 2024, Ameren Missouri filed an update to its Smart Energy Plan with the MoPSC, which includes a five-year capital investment overview with a detailed one-year plan for 2024. The plan is designed to upgrade Ameren Missouri’s electric infrastructure and includes investments that will upgrade the grid and accommodate more renewable energy.
See Note 14 – Commitments and Contingencies under Part II, Item 8, of this report for a discussion of existing and proposed environmental laws, including those that may address climate change, that affect, or may affect, our facilities, operations, and capital expenditures to comply with such laws.
See Note 14 – Commitments and Contingencies under Part II, Item 8, of this report for a discussion of existing and proposed environmental laws, including those that relate to climate change, that affect, or may affect, our facilities, operations, and capital expenditures to comply with such laws.
Further reductions to emissions limits will become effective between 2030 and 2040, resulting in the closure of the Venice Energy Center by 2029. The reductions could also limit the operations of Ameren Missouri's four natural gas-fired energy centers located in the state of Illinois, and will result in their closure by 2040.
Further reductions to emissions limits will become effective between 2030 and 2040, resulting in the closure of the Venice Energy Center by the end of 2029. The reductions could also limit the operations of Ameren Missouri's four other natural gas-fired energy centers located in the state of Illinois, and will result in their closure by 2040.
Based on credit ratings at December 31, 2022, if market prices were 15% higher or lower than December 31, 2022 levels in the next 12 months and 20% higher or lower thereafter through the end of the term of the commodity contracts, then Ameren, Ameren Missouri, or Ameren Illinois could be required to post an immaterial amount, compared to each company’s liquidity, of collateral or provide other assurances for certain trade obligations.
Based on credit ratings at December 31, 2023, if market prices were 15% higher or lower than December 31, 2023 levels in the next 12 months and 20% higher or lower thereafter through the end of the term of the commodity contracts, then Ameren, Ameren Missouri, or Ameren Illinois could be required to post an immaterial amount, compared to each company’s liquidity, of collateral or provide other assurances for certain trade and contractual obligations.
See Note 4 – Short-term Debt and Liquidity under Part II, Item 8, of this report for additional information on the Credit Agreements. During the year ended December 31, 2022, Ameren (parent), Ameren Missouri, and Ameren Illinois each issued commercial paper.
See Note 4 – Short-term Debt and Liquidity under Part II, Item 8, of this report for additional information on the Credit Agreements. During the year ended December 31, 2023, Ameren (parent), Ameren Missouri, and Ameren Illinois each issued commercial paper.
In addition, the new law imposes a 15% minimum tax on adjusted financial statement income, as defined in the law, assessed against corporations whose average annual adjusted financial statement income exceeds $1 billion for three consecutive preceding tax years, effective for tax years beginning after December 31, 2022.
In addition, the new law imposes a 15% minimum tax on adjusted financial statement income, as defined in the law, for corporations whose average annual adjusted financial statement income exceeds $1 billion for three consecutive preceding tax years effective for tax years beginning after December 31, 2022.
The inflationary pressures and increasing interest rates could impact our ability to control costs and/or make substantial investments in our businesses, including our ability to recover costs and investments, and to earn our allowed ROEs within frameworks established by our regulators, while maintaining rates that are affordable to our customers.
The inflationary pressures and high interest rates could impact our ability to control costs and/or make substantial investments in our businesses, including our ability to recover costs and investments, and to earn our allowed ROEs within frameworks established by our regulators, while maintaining rates that are affordable to our customers.
ACCOUNTING MATTERS Critical Accounting Estimates Preparation of the financial statements and related disclosures in compliance with GAAP requires the application of appropriate technical accounting rules and guidance, as well as the use of estimates. These estimates involve judgments regarding many factors that in and of themselves could materially affect the financial statements and disclosures.
ACCOUNTING MATTERS Critical Accounting Estimates Preparation of the financial statements and related disclosures in compliance with GAAP requires the application of accounting rules and guidance, as well as the use of estimates. These estimates involve judgments regarding many factors that in and of themselves could materially affect the financial statements and disclosures.
Failure to submit the applicable certifications, or denial of the submitted certifications by the United States Department of Commerce, could result in increased tariffs on solar panel components that are subject to the investigation and entered the United States on or after April 1, 2022.
Failure to submit the applicable certifications, or denial of the submitted certifications by the United States Department of Commerce, could result in increased tariffs on solar panel components that were subject to the investigation and entered the United States on or after April 1, 2022.
OUTLOOK Below are some key trends, events, and uncertainties that may reasonably affect our results of operations, financial condition, or liquidity, as well as our ability to achieve strategic and financial objectives, for 2023 and beyond.
OUTLOOK Below are some key trends, events, and uncertainties that may reasonably affect our results of operations, financial condition, or liquidity, as well as our ability to achieve strategic and financial objectives, for 2024 and beyond.
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.
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 sale agreements, subject to market conditions and other factors.
In 2015, the United Nations Framework Convention on Climate Change reached consensus among approximately 190 nations on an agreement, known as the Paris Agreement, that establishes a framework for greenhouse gas mitigation actions by all countries, with a goal of holding the increase in global 66 Table of Contents average temperature to below 2 degrees Celsius above pre-industrial levels and an aspiration to limit the increase to 1.5 degrees Celsius.
In 2015, the United Nations Framework Convention on Climate Change reached consensus among approximately 190 nations on an agreement, known as the Paris 66 Table of Conten t s Agreement, that establishes a framework for greenhouse gas mitigation actions by all countries, with a goal of holding the increase in global average temperature to below 2 degrees Celsius above pre-industrial levels and an aspiration to limit the increase to 1.5 degrees Celsius.
See Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of this report. • Discount rates • Cost escalation rates • Changes in regulation, expected scope of work, technology, or timing of environmental remediation • Estimates as to the probability, timing, or amount of cash expenditures associated with AROs Basis for Judgment We record the estimated fair value of legal obligations associated with the retirement of tangible long-lived assets in the period in which the liabilities are incurred and capitalize a corresponding amount as part of the book value of the related long-lived asset.
See Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of this report. • Discount rates • Cost escalation rates • Changes in regulation, expected scope of work, technology, or timing of environmental remediation • Estimates as to the probability, timing, or amount of cash expenditures associated with AROs Basis for Judgment 77 Table of Conten t s We record the estimated fair value of legal obligations associated with the retirement of tangible long-lived assets in the period in which the liabilities are incurred and capitalize a corresponding amount as part of the book value of the related long-lived asset.
The use of cash provided by operating activities and short-term borrowings to fund capital expenditures and other long-term investments at the Ameren Companies frequently results in a working capital deficit, defined as current liabilities exceeding current assets, as was the case at December 31, 2022, for Ameren and Ameren Illinois.
The use of cash provided by operating activities and short-term borrowings to fund capital expenditures and other long-term investments at the Ameren Companies frequently results in a working capital deficit, defined as current liabilities exceeding current assets, as was the case at December 31, 2023, for Ameren, Ameren Missouri, and Ameren Illinois.
We believe this per diluted share information helps readers to understand the impact of these factors on Ameren’s earnings per diluted share. 37 Table of Contents OVERVIEW Our core strategy is driven by the following three pillars, which allow us to capitalize on opportunities to benefit our customers, our shareholders, and the environment: Investing in rate-regulated energy infrastructure Enhancing regulatory frameworks and advocating for responsible policies Optimizing operating performance To capitalize on opportunities to benefit our customers, our shareholders, and the environment We invest in rate-regulated energy infrastructure and seek to earn competitive returns on our investments.
We believe this per share information helps readers to understand the impact of these factors on Ameren’s earnings per diluted share. 37 Table of Conten t s OVERVIEW Our core strategy is driven by the following three pillars, which allow us to capitalize on opportunities to benefit our customers, communities, shareholders, and the environment: Investing in rate-regulated energy infrastructure Enhancing regulatory frameworks and advocating for responsible policies Optimizing operating performance To capitalize on opportunities to benefit our customers, communities, shareholders, and the environment We invest in rate-regulated energy infrastructure and seek to earn competitive returns on our investments.
We record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. • Estimating financial impact of events • Estimating likelihood of various potential outcomes • Regulatory and political environments and requirements • Outcome of legal proceedings, settlements, or other factors • Changes in regulation, expected scope of work, technology, or timing of environmental remediation Basis for Judgment The determination of a loss contingency requires significant judgment as to the expected outcome of the contingency in future periods.
We record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. • Estimating financial impact of events • Estimating likelihood of various potential outcomes • Regulatory and political environments and requirements • Outcome of legal proceedings, settlements, or other factors • Changes in regulation, expected scope of work, technology, or timing of environmental remediation 76 Table of Conten t s Basis for Judgment The determination of a loss contingency requires significant judgment as to the expected outcome of the contingency in future periods.
We also recognize revenues for alternative revenue programs authorized by our regulators that allow for an automatic rate adjustment, are probable of recovery, and are collected within 24 months following the end of the annual period in which they are recognized.
We also recognize revenues for alternative revenue programs authorized by our regulators that allow for an automatic rate adjustment, are probable of recovery or refund, and are collected or refunded within 24 months following the end of the annual period in which they are recognized.
See Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of this report for further detail concerning the preferred stock issuances. 65 Table of Contents Credit Ratings Our credit ratings affect our liquidity, our access to the capital markets and credit markets, our cost of borrowing under our credit facilities and our commercial paper programs, and our collateral posting requirements under commodity contracts.
See Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of this report for further detail concerning the preferred stock issuances. 65 Table of Conten t s Credit Ratings Our credit ratings affect our liquidity, our access to the capital and credit markets and credit markets, our cost of borrowing under our credit facilities and our commercial paper programs, and our collateral posting requirements under commodity contracts.
Our ultimate selection of the discount rate, health care trend rate, and expected rate of return on pension and other postretirement benefit plan assets is based on our consistent application of assumption-setting methodologies and our review of available historical, current, and projected rates, as applicable.
Our ultimate selection of the discount rate, health care trend rate, future compensation, and expected rate of return on pension and other postretirement benefit plan assets is based on our consistent application of assumption-setting methodologies, including our review of available historical, current, and projected rates, as applicable.
For information regarding long-term debt issuances and maturities, common stock issuances, and outstanding forward sale agreements entered into under the ATM program through the date of this report, see Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of this report. 41 Table of Contents Ameren remains focused on strategic capital allocation.
For information regarding long-term debt issuances and maturities, common stock issuances, and outstanding forward sale agreements entered into under the ATM program through the date of this report, see Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of this report. 41 Table of Conten t s Ameren remains focused on strategic capital allocation.
The increase in purchased power cost is reflected in “Cost recovery mechanisms – offset in electric revenue” and the associated recoveries from customers is reflected in “Cost recovery mechanisms – offset in fuel and purchased power” in the table above.
The decrease in purchased power cost is reflected in “Cost recovery mechanisms – offset in electric revenue” and the associated recoveries from customers is reflected in “Cost recovery mechanisms – offset in fuel and purchased power” in the table above.
The timing and amount of investments could vary because of changes in expected capacity, the condition of transmission and distribution systems, and our ability and willingness to pursue transmission investments, as well as our ability to obtain necessary regulatory approvals, among other factors.
The timing and amount of investments could vary because of changes in expected capacity, the condition of transmission and distribution systems, future rate orders, and our ability and willingness to pursue transmission investments, as well as our ability to obtain necessary regulatory approvals, among other factors.
Environmental Capital Expenditures Ameren Missouri will continue to incur costs to comply with federal and state regulations, including those requiring the reduction of SO 2 , NO x , and mercury emissions from its coal-fired energy centers, compliance with the CCR Rule, and potential modifications to cooling water intake structures at existing power plants under Clean Water Act rules.
Environmental Capital Expenditures Ameren Missouri will continue to incur costs to comply with federal and state regulations, including those requiring the reduction of SO 2 , NO x , and mercury emissions from its coal-fired energy centers, compliance with the CCR Rule, and potential modifications to cooling water 61 Table of Conten t s intake structures at existing power plants under Clean Water Act rules.
While rights to acquire the solar facilities discussed above were secured through build-transfer agreements, supply chain disruptions, including solar panel shortages and increasing material costs as a result of government tariffs and other factors, could affect the costs, as well as the timing, of these projects and other solar generation projects.
While rights to acquire build-transfer solar facilities and supplies for development-transfer and self-build solar facilities discussed above were secured through agreements, supply chain disruptions, including solar panel shortages and increasing material costs as a result of government tariffs and other factors, could affect the costs, as well as the timing, of these projects and other solar generation projects.
During 2022, Ameren Missouri utilized net proceeds of $524 million from the issuance of long-term debt to repay then-outstanding short-term debt and for capital expenditures. In addition, Ameren Missouri utilized proceeds from net commercial paper issuances of $164 million along with cash provided by operating activities to fund, in part, capital expenditures.
In comparison, in 2022, Ameren Missouri utilized net proceeds of $524 million from the issuance of long-term debt to repay then-outstanding short-term debt and for capital expenditures. Ameren Missouri also utilized proceeds from net commercial paper issuances of $164 million along with cash provided by operating activities to fund, in part, capital expenditures.
See Note 4 – Short-term Debt and Liquidity and Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of this report for a discussion of covenants and provisions (and applicable cross-default provisions) contained in our credit agreements, certain of the Ameren Companies’ indentures and articles of incorporation, and ATXI’s note purchase agreements.
See Note 4 – Short-term Debt and Liquidity and Note 5 – Long-term Debt and Equity Financings 64 Table of Conten t s under Part II, Item 8, of this report for a discussion of covenants and provisions (and applicable cross-default provisions) contained in our credit agreements, certain of the Ameren Companies’ indentures and articles of incorporation, and ATXI’s note purchase agreements.
In addition, the EPA has announced plans to implement new climate change programs, including potential regulation of greenhouse gas emissions targeting the utility industry. We provide information regarding our sustainability initiatives through our website, including in our annual sustainability report, our responses to the annual climate change and water surveys conducted by CDP, and an ESG investor presentation.
In addition, the EPA has announced plans to implement new climate change programs, including potential regulation of greenhouse gas emissions from the utility industry. We provide information regarding our sustainability initiatives through our website, including in our annual sustainability report, our responses to the annual climate change and water surveys conducted by CDP, and a sustainability investor presentation.
The regulatory balance would then be collected from, or refunded to, customers within two years from the end of the applicable annual period. Ameren Illinois’ existing riders will remain effective under the January 2023 MYRP discussed below, and will continue to remain effective beyond 2027 whether it elects to file an MYRP or a traditional regulatory rate review.
The regulatory balance is then collected from, or refunded to, customers within two years from the end of the applicable annual period. Ameren Illinois’ existing riders will remain effective under the MYRP discussed below, and will continue to remain effective beyond 2027 whether it elects to file an MYRP or a traditional regulatory rate review.
During 2022, Ameren Illinois utilized net proceeds of $848 million from the issuance of long-term debt to repay $400 million of maturities of long-term debt and to repay a portion of the then-outstanding short-term debt.
In comparison, in 2022, Ameren Illinois utilized net proceeds of $848 million from the issuance of long-term debt to repay $400 million of maturities of long-term debt and to repay a portion of then-outstanding short-term debt.
These rates will affect Ameren Illinois’ and ATXI’s cash receipts during 2023, but will not determine their respective electric transmission service operating revenues, which will instead be based on 2023 actual recoverable costs, rate base, and a return on rate base at the applicable WACC as calculated under the FERC formula ratemaking framework. • The allowed base ROE for FERC-regulated transmission rates previously charged under the MISO tariff is the subject of pending proceedings.
These rates will affect Ameren Illinois’ and ATXI’s cash receipts during 2024, but will not determine their respective electric transmission service operating revenues, which will instead be based on 2024 actual recoverable costs, rate base, and a return on rate base at the applicable WACC as calculated under the FERC formula ratemaking framework. • The allowed base ROE for FERC-regulated transmission rates previously charged under the MISO tariff has been the subject of pending proceedings since 2013.
The law also creates new federal production and investment tax credits for projects placed in service after 2024. The federal production and investment tax credits will apply to renewable energy production and investments, along with certain nuclear energy production, and will be phased out beginning in 2033, at the earliest.
The law also creates clean energy tax credits for projects placed in service after 2024. The clean energy tax credits will apply to renewable energy production and investments, along with certain nuclear energy production, and will be phased out beginning in 2033, at the earliest.
The following table reflects the sensitivity of potential changes in key assumptions to Ameren Missouri’s Callaway Energy Center decommissioning obligation as of December 31, 2022: Change in Callaway Energy Center’s Key ARO Assumptions Increase (Decrease) to ARO Discount rate decreased by 0.10% $ 11 Cost escalation rate increased by 0.25% 27 Increase in the estimated decommissioning costs by 10% 43 Two-year deferral in timing of cash expenditures (28) Impact of New Accounting Pronouncements See Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of this report.
The following table reflects the sensitivity of potential changes in key assumptions to Ameren Missouri’s Callaway Energy Center decommissioning obligation as of December 31, 2023: Change in Callaway Energy Center’s Key ARO Assumptions Increase (Decrease) to ARO Discount rate decreased by 0.10% $ 12 Cost escalation rate increased by 0.25% 28 Increase in the estimated decommissioning costs by 10% 45 Two-year deferral in timing of cash expenditures (30) Impact of New Accounting Pronouncements See Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of this report.
Ameren Missouri and Ameren Illinois also have entered into various long-term commitments for purchased power and natural gas for distribution. Ameren’s, Ameren Missouri’s, and Ameren Illinois’ estimated minimum purchase obligations associated with these commitments totaled $2.3 billion, $1.0 billion, and, $1.3 billion, respectively, which include $1.1 billion, $0.4 billion, and, $0.7 billion, respectively, in 2023.
Ameren Missouri and Ameren Illinois also have entered into various long-term commitments for purchased power and natural gas for distribution. Ameren’s, Ameren Missouri’s, and Ameren Illinois’ estimated minimum purchase obligations associated with these commitments totaled $2.3 billion, $1.1 billion, and, $1.2 billion, respectively, which include $0.9 billion, $0.4 billion, and, $0.6 billion, respectively, in 2024.
Given the change in law and the high prices resulting from the MISO’s April 2022 capacity auction, the ICC issued an order requiring Ameren Illinois to perform a cost-benefit study of continued participation in the MISO compared to participation in PJM Interconnection LLC, another RTO.
Given the change in law and the high prices resulting from the MISO’s April 2022 capacity auction, the ICC issued an order requiring Ameren Illinois to perform a cost-benefit study of continued participation in the MISO compared to participation in PJM Interconnection LLC, another RTO. In July 2023, Ameren Illinois filed its cost-benefit study with the ICC.
Based on expected rate base and the currently allowed 10.52% ROE, which includes a 50 basis point incentive adder for participation in an RTO, the revenue requirements that will be included in 2023 rates for Ameren Illinois’ and ATXI’s electric transmission businesses are $476 million and $194 million, respectively.
Based on expected rate base and the currently allowed 10.52% ROE, which includes a 50-basis-point incentive adder for participation in an RTO, the revenue requirements that will be included in 2024 rates for Ameren Illinois’ and ATXI’s electric transmission businesses are $549 million and $223 million, respectively.
At December 31, 2022, the amount of restricted net assets of Ameren’s subsidiaries that may not be distributed to Ameren in the form of a loan or dividend was $4.0 billion.
At December 31, 2023, the amount of restricted net assets of Ameren’s subsidiaries that may not be distributed to Ameren in the form of a loan or dividend was $4.6 billion.
As such, Ameren Illinois’ 2022 revenues reflected, and its 2023 revenues will reflect, each year’s actual recoverable costs, year-end rate base, and a return at the applicable WACC, with the ROE component based on the annual average of the monthly yields of the 30-year United States Treasury bonds plus 580 basis points.
As such, Ameren Illinois’ 2023 revenues reflected actual recoverable costs, year-end rate base, and a return at the applicable WACC, with the ROE component based on the annual average of the monthly yields of the 30-year United States Treasury bonds plus 580 basis points.
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 this report.
For additional information about our long-term debt outstanding, including maturities due within one year, and the applicable interest rates, see 57 Table of Conten t s Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of this report.
Ameren Missouri’s plan could be affected by, among other factors: Ameren Missouri’s ability to obtain certificates of convenience and necessity from the MoPSC, and any other required approvals for the addition of renewable resources or natural gas-fired combined cycle generation, retirement of energy centers, and new or continued customer energy-efficiency programs; the ability to enter into agreements for renewable or natural gas-fired combined cycle generation and acquire or construct that generation at a reasonable cost; the ability of suppliers, contractors, and developers to meet contractual commitments and timely complete projects, which is dependent upon the availability of necessary labor, materials, and equipment, including those that are affected by the disruptions in the global supply chain caused by the COVID-19 pandemic, geopolitical conflict, or government actions, among other things; changes in the scope and timing of projects; the ability to qualify for, and use or transfer, federal production or investment tax credits; the cost of wind, solar, and other renewable generation and battery storage technologies; the cost of natural gas or hydrogen CT technologies; the ability to maintain system reliability during and after the transition to clean energy generation; changes in environmental regulations, including 71 Table of Contents those related to CO 2 and other greenhouse gas emissions; energy prices and demand; Ameren Missouri’s ability to obtain necessary rights-of-way, easements, and transmission interconnection agreements at an acceptable cost and in a timely fashion, the inability to earn an adequate return on invested capital; and the ability to raise capital on reasonable terms.
Ameren Missouri’s plan could be affected by, among other factors: Ameren Missouri’s ability to obtain CCNs from the MoPSC, and any other required approvals for the addition of renewable resources or natural gas-fired generation, retirement of energy centers, and new or continued customer energy-efficiency programs; the ability to enter into agreements for renewable or natural gas-fired generation and acquire or construct that generation at a reasonable cost; the ability of suppliers, contractors, and developers to meet contractual commitments and timely complete projects, which is dependent upon the availability of necessary labor, materials, and equipment, geopolitical conflict, or government actions, among other things; changes in the scope and timing of projects; the ability to qualify for, and use or transfer, federal production or investment tax credits; the cost of wind, solar, and other renewable generation and battery storage technologies; the cost of natural gas or hydrogen CT technologies; the ability to maintain system reliability during and after the transition to clean energy generation; new and/or changes in environmental regulations, including those related to CO 2 and other greenhouse gas emissions; energy prices and demand; Ameren Missouri’s ability to obtain necessary rights-of-way, easements, and transmission interconnection agreements at an acceptable cost and in a timely fashion; the ability to earn an adequate return on invested capital; and the ability to raise capital on reasonable terms.
Ameren Missouri Ameren Illinois Natural Gas Other/Intersegment Eliminations Ameren Illinois Electric Distribution Ameren Transmission The $143 million, $100 million, and $42 million increases in depreciation and amortization expenses in 2022, compared with 2021, at Ameren, Ameren Missouri, and Ameren Illinois, respectively, were primarily due to additional property, plant, and equipment across their respective segments.
Ameren Missouri Ameren Illinois Natural Gas Other/Intersegment Eliminations Ameren Illinois Electric Distribution Ameren Transmission The $98 million, $51 million, and $42 million increases in depreciation and amortization expenses in 2023, compared with 2022, at Ameren, Ameren Missouri, and Ameren Illinois, respectively, were primarily due to additional property, plant, and equipment across their respective segments.
Any future tariffs or other outcomes resulting from the investigation by the United States Department of Commerce or actions by the United States Customs and Border Protection Agency could affect the cost and the availability of solar panel components and the timing and amount of Ameren Missouri's estimated capital expenditures associated with solar generation investments. • Through 2027, we expect to make significant capital expenditures to improve our electric and natural gas utility infrastructure, with a major portion directed to our transmission and distribution systems.
Any future tariffs or actions by the United States Customs and Border Protection Agency could affect the cost and the availability of solar panel components and the timing and amount of Ameren Missouri's estimated capital expenditures associated with solar generation investments. • Through 2028, we expect to make significant capital expenditures to improve our electric and natural gas utility infrastructure, with a major portion directed to our transmission and distribution systems.
The following table reflects the sensitivity of Ameren’s pension and postretirement plans to potential changes in key assumptions for the year ended December 31, 2022: Pension Benefits Postretirement Benefits Net Periodic Benefit Cost Projected Pension Benefit Obligation Net Periodic Benefit Cost Projected Postretirement Benefit Obligation 0.25% decrease in discount rate $ 13 $ 113 $ 2 $ 22 0.25% decrease in return on assets 12 (a) 3 (a) 0.25% increase in future compensation 4 12 (a) (a) (a) Not applicable.
The following table reflects the sensitivity of Ameren’s pension and postretirement plans to potential changes in key assumptions for the year ended December 31, 2023: Pension Benefits Postretirement Benefits Net Periodic Benefit Cost Projected Pension Benefit Obligation Net Periodic Benefit Cost Projected Postretirement Benefit Obligation 0.25% decrease in discount rate $ 12 $ 121 $ 2 $ 23 0.25% decrease in return on assets 12 (a) 4 (a) 0.25% increase in future compensation 3 11 (a) (a) (a) Not applicable.
When business conditions warrant, changes may be made to existing credit agreements or to other short-term borrowing arrangements, or other arrangements may be made. 63 Table of Contents Long-term Debt and Equity The following table presents Ameren’s issuances (net of any issuance premiums or discounts) of long-term debt and equity, as well as redemptions and maturities of long-term debt and preferred stock for the years ended December 31, 2022 and 2021.
When business conditions warrant, changes may be made to existing credit agreements or to other short-term borrowing arrangements, or other arrangements may be made. 63 Table of Conten t s Long-term Debt and Equity The following table presents Ameren’s issuances (net of any issuance premiums or discounts) of long-term debt and equity, as well as redemptions and maturities of long-term debt for the years ended December 31, 2023 and 2022.
In addition, 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.
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 sale agreements, subject to market conditions and other factors.
Any change in the assumptions or judgments applied in determining the following matters, among others, could have a material impact on future financial results. 74 Table of Contents Accounting Estimate Uncertainties Affecting Application Regulatory Mechanisms and Cost Recovery We defer costs and recognize revenues that we intend to collect in future rates. • Regulatory environment and external regulatory decisions and requirements • Anticipated future regulatory decisions and our assessment of their impact • The impact of prudence reviews, complaint cases, limitations on electric rate increases in Missouri and Illinois, and opposition during the ratemaking process that may limit our ability to timely recover costs and earn a fair return on our investments • Ameren Illinois’ assessment of and ability to estimate the current year’s electric distribution service costs to be reflected in revenues and recovered from customers in a subsequent year under the IEIMA performance-based formula ratemaking framework and under the MYRP process, which will be effective beginning in 2024 • Ameren Illinois’ and ATXI’s assessment of and ability to estimate the current year’s electric transmission service costs to be reflected in revenues and recovered from customers in a subsequent year under the FERC ratemaking frameworks • Ameren Missouri’s estimate of revenue recovery under the MEEIA plans Basis for Judgment The application of accounting guidance for rate-regulated businesses results in recording regulatory assets and liabilities.
Any change in the assumptions or judgments applied in determining the following matters, among others, could have a material impact on future financial results. 74 Table of Conten t s Accounting Estimate Uncertainties Affecting Application Regulatory Mechanisms and Cost Recovery We defer costs and recognize revenues that we intend to collect in future rates. • Regulatory environment and external regulatory decisions and requirements • Anticipated future regulatory decisions and our assessment of their impact • The impact of prudence reviews, complaint cases, limitations on electric rate increases in Missouri and Illinois, and opposition during the ratemaking process that may limit our ability to timely recover costs and earn a fair return on our investments • Ameren Illinois’ assessment of and ability to estimate the current year’s electric distribution service costs to be reflected in revenues and recovered from customers in a subsequent year under the MYRP process, effective in 2024, which includes a revenue requirement reconciliation, which may not allow for full recovery of actual costs due to a reconciliation cap • Ameren Illinois’ and ATXI’s assessment of and ability to estimate the current year’s electric transmission service costs to be reflected in revenues and recovered from customers in a subsequent year under the FERC ratemaking frameworks • Ameren Missouri’s estimate of revenue recovery under the MEEIA plans Basis for Judgment The application of accounting guidance for rate-regulated businesses results in recording regulatory assets and liabilities.
The non-service cost component of net periodic benefit cost or income at Ameren Services is allocated to the segments and primarily included in the segments’ other operations and maintenance expenses.
The non-service cost component of net periodic benefit cost or income at Ameren Services is allocated to the segments and primarily included in the segments’ other operations and maintenance expenses. Other operations and maintenance expenses were comparable at Ameren Transmission between periods.
Dividends Ameren paid to its shareholders common stock dividends totaling $610 million, or $2.36 per share, in 2022 and $565 million, or $2.20 per share, in 2021. The amount and timing of dividends payable on Ameren’s common stock are within the sole discretion of Ameren’s board of directors.
Dividends Ameren paid to its shareholders common stock dividends totaling $662 million, or $2.52 per share, in 2023 and $610 million, or $2.36 per share, in 2022. The amount and timing of dividends payable on Ameren’s common stock are within the sole discretion of Ameren’s board of directors.
In addition to changes by segment as discussed below, other operations and maintenance expenses increased $22 million in 2022 for activity not reported as part of a segment, as reflected in “Other/Intersegment Eliminations” above, primarily because of an increase in the elimination of the non-service cost component of net periodic benefit income at Ameren Services.
In addition to changes by segment as discussed below, other operations and maintenance expenses increased $18 million in 2023 for activity not reported as part of a 51 Table of Conten t s segment, as reflected in “Other/Intersegment Eliminations” above, primarily because of an increase in the elimination of the non-service cost component of net periodic benefit income at Ameren Services.
A sub-investment-grade issuer or senior unsecured debt rating (below “Baa3” from Moody’s or below “BBB-” from S&P) at December 31, 2022, could have resulted in Ameren, Ameren Missouri, or Ameren Illinois being required to post additional collateral or other assurances for certain trade obligations amounting to $124 million, $58 million, and $66 million, respectively.
A sub-investment-grade issuer or senior unsecured debt rating (below “Baa3” from Moody’s or below “BBB-” from S&P) at December 31, 2023, could have resulted in Ameren, Ameren Missouri, or Ameren Illinois being required to post additional collateral or other assurances for certain trade and contractual obligations amounting to $685 million, $604 million, and $81 million, respectively.
I n addition, Ameren utilized proceeds from net commercial paper issuances of $522 million, aggregate cash proceeds of $333 million from the issuance of common stock under the ATM program, the DRPlus, and the 401(k) plan, and cash provided by operating activities to fund, in part, capital expenditures.
I n addition, Ameren utilized aggregate cash proceeds of $346 million from the issuance of common stock under the ATM program, the DRPlus, and the 401(k) plan, and cash provided by operating activities to fund, in part, capital expenditures.
Discussion regarding our financial condition and results of operations for the year ended December 31, 2020, including comparisons with the year ended December 31, 2021, is included in Item 7 of our Form 10-K for the year ended December 31, 2021, filed with the SEC on February 23, 2022.
Discussion regarding our financial condition and results of operations for the year ended December 31, 2021, including comparisons with the year ended December 31, 2022, is included in Item 7 of our Form 10-K for the year ended December 31, 2022.
The plan is designed to upgrade Ameren Missouri’s electric infrastructure and includes investments that will upgrade the grid and accommodate more renewable energy. Investments under the plan are expected to total approximately $9.9 billion over the five-year period from 2023 through 2027, with expenditures largely recoverable under the PISA and the RESRAM.
The plan is designed to upgrade Ameren Missouri’s electric infrastructure and includes investments that will upgrade the grid and accommodate more renewable energy. Investments under the plan are expected to total approximately $12.4 billion over the five-year period from 2024 through 2028, with expenditures largely recoverable under the PISA.
Ameren, Ameren Missouri, and Ameren Illinois each believe that their liquidity is adequate given their respective expected operating cash flows, capital expenditures, and financing plans. To date, the Ameren Companies have been able to access the capital markets on reasonable terms when needed.
Ameren, Ameren Missouri, and Ameren Illinois each believe that their liquidity is adequate given their respective expected operating cash flows, capital expenditures, and financing plans, and expect to continue to have access to the capital and credit markets on reasonable terms when needed.
The increases in net income were partially offset by an increase in the net loss for activity not reported as part of a segment, primarily at Ameren (parent), of $45 million.
The increases in net income were partially offset by a net income decrease of $17 million at Ameren Missouri and an increase in the net loss for activity not reported as part of a segment, primarily at Ameren (parent), of $5 million.
However, these margins may not be a presentation defined under GAAP, and they may not be comparable to other companies’ presentations or more useful than the GAAP information we provide elsewhere in this report. 46 Table of Contents Electric Margins Total by Segment (a) Increase by Segment Overall Ameren Increase of $451 Million (a) Includes other/intersegment eliminations of $(25) million and $(29) million in 2022 and 2021, respectively.
However, these margins may not be a presentation defined under GAAP, and they may not be comparable to other companies’ presentations or more useful than the GAAP information we provide elsewhere in this report. 46 Table of Conten t s Electric Margins Total by Segment (a) Increase (Decrease) by Segment Overall Ameren Increase of $66 Million (a) Includes other/intersegment eliminations of $(32) million and $(25) million in 2023 and 2022, respectively.
In February 2022, Ameren’s board of directors increased the quarterly common stock dividend to 59 cents per share, resulting in an annualized equivalent dividend rate of $2.36 per share. In February 2023, Ameren’s board of directors increased the quarterly common stock dividend to 63 cents per share, resulting in an annualized equivalent dividend rate of $2.52 per share.
In February 2023, Ameren’s board of directors increased the quarterly common stock dividend to 63 cents per share, resulting in an annualized equivalent dividend rate of $2.52 per share. In February 2024, Ameren’s board of directors increased the quarterly common stock dividend to 67 cents per share, resulting in an annualized equivalent dividend rate of $2.68 per share.
Ameren Missouri Ameren Illinois Electric Distribution Ameren Transmission Other/Intersegment Eliminations Natural Gas Margins Total by Segment (a) Increase by Segment Overall Ameren Increase of $64 Million (a) Includes other/intersegment eliminations of $(1) million and $(1) million in 2022 and 2021, respectively.
Ameren Missouri Ameren Illinois Electric Distribution Ameren Transmission Other/Intersegment Eliminations Natural Gas Margins Total by Segment (a) Decrease by Segment Overall Ameren Decrease of $13 Million (a) Includes other/intersegment eliminations of $(1) million and $(1) million in 2023 and 2022, respectively.
In November 2022, the MISO released plans for a second tranche of projects and began the process of identifying a list of projects for consideration under this tranche. Ameren expects the second tranche of projects to be approved in the first half of 2024.
A decision by the ICC is expected by February 2025. In November 2022, the MISO released plans for a second tranche of projects and began the process of identifying a list of projects for consideration under this tranche. Ameren expects the second tranche of projects to be approved in the first half of 2024.
Additionally, the proceeds from the issuance of long-term debt, proceeds from net commercial paper issuances of $161 million, capital contributions from Ameren (parent) of $15 million, and cash provided by operating activities were used to fund, in part, capital expenditures.
Additionally, the proceeds from the issuance of long-term debt, proceeds from net commercial paper issuances of $161 million, capital contributions from Ameren (parent) of $15 million, and cash provided by operating activities were used to fund, in part, capital expenditures. During 2023, Ameren Illinois paid common stock dividends of $41 million.
As of December 31, 2022, Ameren had approximately $1 billion of common stock available for sale under the ATM program, which takes into account the forward sale agreements in effect as of December 31, 2022.
As of December 31, 2023, 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 December 31, 2023.
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: 2022 2021 Ameren $ 610 $ 565 Ameren Missouri 46 24 ATXI 30 99 Ameren Missouri and Ameren Illinois each have issued preferred stock, which provide for cumulative 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: 2023 2022 Ameren $ 662 $ 610 Ameren Missouri 9 46 Ameren Illinois 41 — ATXI 123 30 Ameren Missouri and Ameren Illinois each have issued preferred stock, which provide for cumulative dividends.
Ameren Missouri recognizes an offset to interest charges for its cost of debt relating to each return allowed under the PISA, with the difference between the applicable WACC and its cost of debt recognized in revenues when recovery of PISA deferrals is reflected in customer rates.
Ameren Missouri recognizes an offset to “Interest Charges” on its consolidated statement of income for its carrying cost of debt relating to each return allowed under the PISA, with the difference between the applicable WACC and its carrying cost of debt recognized in revenues when recovery of PISA deferrals is reflected in customer rates.
Capital expenditures related to these facilities are included in Ameren’s and Ameren Missouri’s expected capital investments discussed below. • Ameren Missouri's 2022 Change to the 2020 IRP targets cleaner and more diverse sources of energy generation, including solar generation.
All of the solar generation facilities are aligned with the 2023 IRP discussed above, and expected capital expenditures related to these facilities are included in Ameren’s and Ameren Missouri’s expected capital investments discussed below. • Ameren Missouri's 2023 IRP targets cleaner and more diverse sources of energy generation, including solar generation.
Earnings Summary The following table presents a summary of Ameren’s earnings for the years ended December 31, 2022 and 2021: 2022 2021 Net income attributable to Ameren common shareholders $ 1,074 $ 990 Earnings per common share – diluted 4.14 3.84 Net income attributable to Ameren common shareholders in 2022 increased $84 million, or $0.30 per diluted share, from 2021.
Earnings Summary The following table presents a summary of Ameren’s earnings for the years ended December 31, 2023 and 2022: 2023 2022 Net income attributable to Ameren common shareholders $ 1,152 $ 1,074 Earnings per common share – diluted 4.38 4.14 Net income attributable to Ameren common shareholders in 2023 increased $78 million, or $0.24 per diluted share, from 2022.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeAmeren Illinois purchases energy and capacity through the MISO and through bilateral contracts resulting from IPA procurement events. Typically, Ameren Illinois purchases a total of 50% of its capacity needs bilaterally, with the remaining balance to be procured through the annual MISO capacity auction. Daily energy balancing is also handled through the MISO marketplace.
Biggest changeIn 2023, Ameren Illinois procured power on behalf of its customers for 28% of its total kilowatthour sales. Ameren Illinois purchases energy and capacity through bilateral contracts resulting from IPA procurement events, with any remaining needs procured through the MISO marketplace.
To the extent not recovered through rates, changes in the market values of these contracts are reflected in earnings. Commodity Price Risk Ameren Missouri’s and Ameren Illinois’ electric and natural gas distribution businesses’ exposure to changing market prices for commodities is in large part mitigated by the fact that there are cost recovery mechanisms in place.
To the extent not recovered through customer rates, changes in the market values of these contracts are reflected in earnings. Commodity Price Risk Ameren Missouri’s and Ameren Illinois’ electric and natural gas distribution businesses’ exposure to changing market prices for commodities is in large part mitigated by the fact that there are cost recovery mechanisms in place.
Contributions to the plans and future costs could increase materially if we do not achieve pension and postretirement asset portfolio investment returns equal to or in excess of our 2023 assumed return on plan assets of 6.75%. Ameren Missouri also maintains a trust fund, as required by the NRC and Missouri law, to fund certain costs of nuclear plant decommissioning.
Contributions to the plans and future costs could increase materially if we do not achieve pension and postretirement asset portfolio investment returns equal to or in excess of our 2024 assumed return on plan assets of 6.75%. Ameren Missouri also maintains a trust fund, as required by the NRC and Missouri law, to fund certain costs of nuclear plant decommissioning.
This continues each successive year through March 2027. (d) Represents the percentage of purchased power price-hedged for fixed-price residential and nonresidential customers with less than 150 kilowatts of demand. Our exposure to commodity price risk for construction and maintenance activities is related to changes in market prices for metal commodities and to labor availability.
This continues each successive year through March 2028. (d) Represents the percentage of purchased power price-hedged for fixed-price residential and nonresidential customers with less than 150 kilowatts of demand. Our exposure to commodity price risk for construction and maintenance activities is related to changes in market prices for metal commodities and to labor availability.
See Note 7 – Derivative Financial Instruments under Part II, Item 8, of this report for information on the potential loss on counterparty exposure as of December 31, 2022. Our revenues are primarily derived from sales or delivery of electricity and natural gas to customers in Missouri and Illinois.
See Note 7 – Derivative Financial Instruments under Part II, Item 8, of this report for information on the potential loss on counterparty exposure as of December 31, 2023. Our revenues are primarily derived from sales or delivery of electricity and natural gas to customers in Missouri and Illinois.
Also see Note 14 – Commitments and Contingencies under Part II, Item 8, of this report for additional information. Commodity Supplier Risk The use of low-sulfur coal is part of Ameren Missouri’s environmental compliance strategy. Ameren Missouri has agreements with multiple suppliers to purchase low-sulfur coal through 2027 to comply with environmental regulations.
Also see Note 14 – Commitments and Contingencies under Part II, Item 8, of this report for additional information. Commodity Supplier Risk The use of low-sulfur coal is part of Ameren Missouri’s environmental compliance strategy. Ameren Missouri has agreements with multiple suppliers to purchase low-sulfur coal through 2028 to comply with environmental regulations.
As there is no refueling and maintenance outage scheduled to occur during 2024, there are also no nuclear fuel deliveries anticipated to occur in 2024. (c) Represents the percentage of natural gas price-hedged for peak winter season of November through March. The year 2023 represents January 2023 through March 2023. The year 2024 represents November 2023 through March 2024.
As there is no refueling and maintenance outage scheduled to occur during 2024, there are also no nuclear fuel deliveries anticipated to occur in 2024. (c) Represents the percentage of natural gas price-hedged for peak winter season of November through March. The year 2024 represents January 2024 through March 2024. The year 2025 represents November 2024 through March 2025.
Our risk management objectives are to optimize our physical generating assets and to pursue market opportunities within prudent risk parameters. Our risk management policies are set by a risk management steering committee, which is composed of senior-level Ameren officers, with Ameren board of directors’ oversight.
Our risk management objectives are to optimize our physical generating assets and to pursue market opportunities within prudent risk parameters. Our risk management policies are set by the risk management steering committee, which is composed of senior-level Ameren officers, with Ameren board of directors’ oversight.
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. As of December 31, 2022, that separate account is comprised of approximately 50% equity securities and 50% debt securities.
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. As of December 31, 2023, that separate account is comprised of approximately 50% equity securities and 50% debt securities.
The estimated increase in our annual interest expense and decrease in net income if interest rates were to increase by 100 basis points on variable-rate debt outstanding at December 31, 2022 is immaterial.
The estimated increase in our annual interest expense and decrease in net income if interest rates were to increase by 100 basis points on variable-rate debt outstanding at December 31, 2023 is immaterial.
See Note 1 – Summary of Significant Accounting Policies and Note 10 – Retirement Benefits under Part II, Item 8, of this report for additional information related to asset retirement obligations, goodwill, and the defined pension and postretirement benefit plans.
See Note 1 – Summary of Significant Accounting Policies and Note 10 – Retirement Benefits under Part II, Item 8, of this report for additional information related to AROs, goodwill, and the defined pension and postretirement benefit plans.
Interest rate levels also influence the ROE allowed by our regulators in our other ratemaking jurisdictions, as well as the carrying costs associated with certain regulatory assets and liabilities. 78 Table of Contents Credit Risk Credit risk represents the loss that would be recognized if counterparties should fail to perform as contracted.
Interest rate levels also influence the ROE allowed by our regulators in our other ratemaking jurisdictions, as well as the carrying costs associated with certain regulatory assets and liabilities. Credit Risk Credit risk represents the loss that would be recognized if counterparties should fail to perform as contracted.
The following table presents, as of December 31, 2022, the percentages of the projected required supply of coal and coal transportation for Ameren Missouri’s coal-fired energy centers, nuclear fuel for Ameren Missouri’s Callaway Energy Center, natural gas for Ameren Missouri’s and Ameren Illinois’ retail distribution, and purchased power for Ameren Illinois that are price-hedged over the period 2023 through 2027.
The following table presents, as of December 31, 2023, the percentages of the projected required supply of coal and coal transportation for Ameren Missouri’s coal-fired energy centers, nuclear fuel for Ameren Missouri’s Callaway Energy Center, natural gas for Ameren Missouri’s and Ameren Illinois’ retail distribution, and purchased power for Ameren Illinois that are price-hedged over the period 2024 through 2028.
The IPA has proposed and the ICC has approved multiple procurement events covering portions of years through 2025 for capacity and energy.
The IPA has proposed and the ICC has approved multiple procurement events covering portions of years through 2027 for capacity and energy.
Interest Rate Risk We are exposed to market risk through changes in interest rates associated with: • short-term variable-rate debt; • fixed-rate debt; • United States Treasury bonds; and • the discount rate applicable to asset retirement obligations, goodwill, and defined pension and postretirement benefit plans.
Interest Rate Risk We are exposed to market risk through changes in interest rates associated with: • short-term variable-rate debt; • fixed-rate debt; • United States Treasury bonds; and • the discount rate applicable to AROs, goodwill, and defined pension and postretirement benefit plans.
While Ameren Missouri has minimum purchase obligations associated with these agreements, the majority of these agreements are not associated with any specific coal-fired energy center. 80 Table of Contents (b) The Callaway Energy Center requires refueling at 18-month intervals.
While Ameren Missouri has minimum purchase obligations associated with these agreements, the majority of these agreements are not associated with any specific coal-fired energy center. 80 Table of Conten t s (b) The Callaway Energy Center requires refueling at 18-month intervals.
As of December 31, 2022, this fund was invested in domestic equity securities (65%) and debt securities (34%). By maintaining a portfolio that includes long-term equity investments, Ameren Missouri seeks to maximize the returns to be used to fund nuclear decommissioning costs within acceptable parameters of risk.
As of December 31, 2023, this fund was invested in domestic equity securities (68%) and debt securities (31%). By maintaining a portfolio that includes long-term equity investments, Ameren Missouri seeks to maximize the returns to be used to fund nuclear decommissioning costs within acceptable parameters of risk.
While rights to acquire solar generation facilities totaling 350 MWs were secured through build-transfer agreements, supply chain disruptions, including solar panel shortages and increasing material costs as a result of government tariffs and other factors, could affect the costs, as well as the timing, of these projects and other solar generation projects.
While rights to acquire build-transfer solar facilities and supplies for development-transfer and self-build solar facilities totaling 900 MWs were secured through agreements, supply chain disruptions, including solar panel shortages and increasing material costs as a result of government tariffs and other factors, could affect the costs, as well as the timing, of these projects and other solar generation projects.
When that option is selected, Ameren Illinois produces consolidated bills for the applicable retail customers to reflect charges for electric distribution and purchased receivables. As of December 31, 2022, Ameren Illinois’ balance of purchased accounts receivable associated with the utility consolidated billing and purchase of receivables services was $31 million.
When that option is selected, Ameren Illinois produces consolidated bills for the applicable retail customers to reflect charges for electric distribution and purchased receivables from the alternative retail electric suppler. As of December 31, 2023, Ameren Illinois’ balance of purchased accounts receivable associated with the utility consolidated billing and purchase of receivables services was $42 million.
The allowed ROE under Ameren Illinois’ IEIMA electric distribution service and its electric energy-efficiency investments formula ratemaking recovery mechanisms is based on the annual average of the monthly yields of the 30-year United States Treasury bonds plus 580 basis points.
The allowed ROE under Ameren Illinois’ electric energy-efficiency investments formula ratemaking recovery mechanisms is based on the annual average of the monthly yields of the 30-year United States Treasury bonds plus 580 basis points.
Ameren Missouri’s exposure to equity price market risk is in large part mitigated because Ameren Missouri is currently allowed to recover its decommissioning costs, which would include unfavorable investment results, through electric rates. 79 Table of Contents Additionally, Ameren and Ameren Illinois have COLI contracts with net cash surrender values of $136 million and $8 million, respectively, as of December 31, 2022.
Ameren Missouri’s exposure to equity price market risk is in large part mitigated because Ameren Missouri is currently allowed to recover its decommissioning costs, which would include unfavorable investment results, through electric rates. 79 Table of Conten t s Additionally, Ameren and Ameren Illinois have COLI contracts with net cash surrender values of $144 million and $7 million, respectively, as of December 31, 2023.
Ameren Illinois has also entered into ICC-approved contracts for zero emission credits through 2026 and for renewable energy credits with various terms, including contracts with a 20-year term ending 2032, and contracts entered into beginning in 2018 through 2022 with 15-year terms.
Ameren Illinois has also entered into ICC-approved contracts for zero emission credits through May 2027 and for renewable energy credits with various terms, including contracts with 20-year terms ending 2032, and contracts entered into beginning in 2018 through 2024 with 15- to 20-year terms.
Ameren Missouri would then need to purchase power necessary to meet demand. Currently, the Callaway Energy Center has a single NRC-licensed supplier able to provide fuel assemblies to the Callaway Energy Center. Ameren Missouri is pursuing a program to qualify an alternate NRC-licensed supplier, and expects to obtain NRC approval in the near term.
Ameren Missouri would then need to purchase power necessary to meet demand. Currently, the Callaway Energy Center has a single NRC-licensed supplier able to provide fuel assemblies to the Callaway Energy Center. Ameren Missouri is pursuing a program to qualify an alternate NRC-licensed supplier for contingency purposes.
Any future tariffs or other outcomes resulting from the investigation by the United States Department of Commerce or actions by the United States Customs and Border Protection Agency could affect the cost and the availability of solar panel components and the timing and amount of Ameren Missouri's estimated capital expenditures associated with solar generation investments. 81 Table of Contents
Any future tariffs or actions by the United States Customs and Border Protection Agency could affect the cost and the availability of solar panel components and the timing and amount of Ameren Missouri's estimated capital expenditures associated with solar generation investments. 81 Table of Conten t s
See Results of Operations in Management’s Discussion and Analysis of Financial Condition and Results of Operations under Part II, Item 7, of this report for more information on Ameren’s, Ameren Missouri’s, and Ameren Illinois’ accounts receivable balances that were 30 days or greater past due or that were a part of a deferred payment arrangement as of December 31, 2022.
See Note 15 – Supplemental Information under Part II, Item 8, of this report for more information on Ameren’s, Ameren Missouri’s, and Ameren Illinois’ accounts receivable balances that were 30 days or greater past due or that were a part of a deferred payment arrangement as of December 31, 2023.
The projected required supply of these commodities could be significantly affected by changes in our assumptions about customer demand for electricity and natural gas supplied by us and inventory levels, as well as Ameren Missouri’s generation output, among other matters. 2023 2024 2025 – 2027 Ameren: Coal (a) 91 % 84 % 40 % Coal transportation (a) 100 97 74 Nuclear fuel 97 (b) 96 Natural gas for distribution (c) 88 42 15 Purchased power for Ameren Illinois (d) 70 35 9 Ameren Missouri: Coal (a) 91 % 84 % 40 % Coal transportation (a) 100 97 74 Nuclear fuel 97 (b) 96 Natural gas for distribution (c) 81 49 28 Ameren Illinois: Natural gas for distribution (c) 89 % 41 % 13 % Purchased power (d) 70 35 9 (a) Ameren Missouri has agreements in place to purchase and transport coal to its energy centers.
The projected required supply of these commodities could be significantly affected by changes in our assumptions about customer demand for electricity and natural gas supplied by us and inventory levels, as well as Ameren Missouri’s generation output, among other matters. 2024 2025 2026 – 2028 Ameren: Coal (a) 98 % 85 % 48 % Coal transportation (a) 100 100 98 Nuclear fuel (b) 100 100 Natural gas for distribution (c) 97 50 27 Purchased power for Ameren Illinois (d) 77 37 11 Ameren Missouri: Coal (a) 98 % 85 % 48 % Coal transportation (a) 100 100 98 Nuclear fuel (b) 100 100 Natural gas for distribution (c) 90 57 31 Ameren Illinois: Natural gas for distribution (c) 98 % 49 % 26 % Purchased power (d) 77 37 11 (a) Ameren Missouri has agreements in place to purchase and transport coal to its energy centers.
At December 31, 2022, no nonaffiliated customer represented more than 10% of our accounts receivable. Additionally, Ameren Illinois faces risks associated with the purchase of receivables. The Illinois Public Utilities Act requires Ameren Illinois to establish electric utility consolidated billing and purchase of receivables services.
Additionally, Ameren Illinois faces risks associated with the purchase of receivables. The Illinois Public Utilities Act requires Ameren Illinois to establish electric utility consolidated billing and purchase of receivables services.
Ameren Missouri remains exposed to the remaining 5% of such changes. Ameren Illinois has cost recovery mechanisms for power purchased, capacity, zero emission credit, and renewable energy credit costs and expects full recovery of such costs.
Ameren Missouri remains exposed to the remaining 5% of such changes. Ameren Illinois has cost recovery mechanisms for power purchased, capacity, zero emission credit, and renewable energy credit costs. Ameren Illinois is required to serve as the provider of last resort for electric customers in its service territory who have not chosen an alternative retail electric supplier.
Ameren Missouri has inventories and supply contracts from non-Russian suppliers sufficient to meet all of its uranium (concentrate and hexafluoride), conversion, and enrichment requirements at least through the 2026 refueling of the Callaway Energy Center. Ameren Missouri's 2022 Change to the 2020 IRP targets cleaner and more diverse sources of energy generation, including solar generation.
Ameren Missouri has sufficient inventory and supply contracts with non-Russian suppliers that adequately meet all of the nuclear fuel needs of the Callaway Energy Center through the spring 2028 refueling. Ameren Missouri's 2023 IRP targets cleaner and more diverse sources of energy generation, including solar generation.
Our physical and financial instruments are subject to credit risk consisting of trade accounts receivables and executory contracts with market risk exposures. The risk associated with trade receivables is mitigated by the large number of customers in a broad range of industry groups who make up our customer base.
Our physical and financial instruments subject to credit risk primarily consist of trade accounts receivables and executory contracts with market risk exposures. Credit risk associated with trade receivables is mitigated by our diversified customer base. At December 31, 2023, no nonaffiliated customer represented more than 10% of our accounts receivable.
Therefore, Ameren Illinois’ annual ROE for its electric distribution business is directly correlated to the yields on such bonds, which are outside of Ameren Illinois’ control. Ameren Illinois expects to use the current IEIMA formula framework to establish annual customer rates effective through 2023 and reconcile the related revenue requirements.
Therefore, Ameren Illinois’ 78 Table of Conten t s annual ROE for its electric energy-efficiency investments is directly correlated to the yields on such bonds, which are outside of Ameren Illinois’ control.
Removed
A 50 basis point change in the annual average of the monthly yields of the 30-year United States Treasury bonds would result in an estimated $12 million change in Ameren’s and Ameren Illinois’ annual net income, based on Ameren Illinois’ 2023 projected year-end rate base, including electric energy-efficiency investments.
Added
Ameren Illinois has purchased approximately 15% of its June 2024 to May 2025 capacity needs bilaterally, however, this percentage beyond May 2025 will be dependent on the results of future IPA procurement events. Daily energy balancing is also handled through the MISO marketplace.
Removed
Ameren Illinois is required to serve as the provider of last resort for electric customers in its service territory who have not chosen an alternative retail electric supplier. In 2022, Ameren Illinois procured power on behalf of its customers for 28% of its total kilowatthour sales.
Added
Ameren Missouri is awaiting approval from the NRC, which is under no deadline to issue the approval. Ameren Missouri received a planned delivery of enriched uranium from a Russian supplier in the spring of 2023. The planned delivery concluded the nuclear fuel supply agreement with this Russian supplier with no future deliveries planned with any Russian suppliers.
Removed
Ameren Missouri is expecting a delivery for an immaterial amount of enriched uranium sourced from a Russian supplier. This material is planned to be utilized in the near-term and could become subject to potential sanctions. Ameren Missouri has established contingency plans to minimize its exposure risk to Russian-sourced fuel.
Added
See Note 2 – Rate and Regulatory Matters under Part II, Item 8, of this report for additional information on the solar facilities.

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