Ameren
Annual Report 2005

Plain-text annual report

2005 Annual Report A m e r e n 2 0 0 5 A n n u a l R e p o r t a n d F o r m 1 0 - K P.O. Box 66149 St. Louis, Missouri 63166-6149 www.ameren.com Geared Up 14471rrdD1R2.indd 1 3/3/06 5:14:10 PM Geared Up I n v e S TO r I n f O r m AT I O n Common Stock and Dividend Information Ameren’s common stock is listed on the New York Stock Exchange (ticker symbol: AEE). Ameren began trading on January 2, 1998, following the merger of Union Electric Company and CIPSCO Inc. on December 31, 1997. Ameren common shareholders of record totaled 83,737 on December 31, 2005. The following table presents the price ranges and dividends paid per Ameren common share for each quarter during 2005 and 2004. AEE 2005 Quarter Ended March 31 June 30 September 30 December 31 AEE 2004 Quarter Ended March 31 June 30 September 30 December 31 High Low Close $52.00 58.84 56.77 54.46 $47.51 $49.01 48.70 55.30 53.49 52.05 51.24 49.61 Dividends Paid 63 1⁄2 ¢ 63 1⁄2 63 1⁄2 63 1⁄2 High Low Close $48.34 $44.91 $46.09 40.55 46.28 42.96 46.15 42.00 46.99 50.14 45.95 50.36 Dividends Paid 63 1⁄2 ¢ 63 1⁄2 63 1⁄2 63 1⁄2 Annual meeting The annual meeting of Ameren Corporation shareholders will convene at 9 a.m., Tuesday, May 2, 2006, at the Saint Louis Art Museum, One Fine Arts Drive, Forest Park, St. Louis, Missouri. The annual shareholder meetings of Central Illinois Light Company, Central Illinois Public Service Company, Illinois Power Company and Union Electric Company will be held at the same time. DrPlus Any person of legal age or entity, whether or not an Ameren shareholder, is eligible to participate in DRPlus, Ameren’s dividend reinvestment and stock purchase plan. Participants can: n make cash investments by check or automatic direct debit to their bank accounts to purchase Ameren common stock, totaling up to $120,000 annually, n reinvest their dividends in Ameren common stock or receive Ameren dividends in cash, and n place Ameren common stock certificates in safekeeping and receive regular account statements. For more information about DRPlus, you may obtain a prospectus from the company’s Investor Services representatives. Direct Deposit of Dividends All registered Ameren common and Union Electric Company, Central Illinois Light Company, Central Illinois Public Service Company and Illinois Power Company preferred shareholders r e p a P l d e c y c e R n o d e t n i r P . c n I , i n g s e D a t a b O : y h p a r g o t o h P j r o a M d n a i n g s e D page 6 Financial Highlights page 8 Letter to Shareholders page 14 Corporate Responsibility page 16 Ameren Corporation and Subsidiaries Officers Form 10-K inside back cover Investor Information A m e r e n 2 0 0 5 14471rrdD1R2.indd 2 can have their cash dividends automatically deposited to their bank accounts. This service gives shareholders immediate access to their dividend on the dividend payment date and eliminates the possibility of lost or stolen dividend checks. Corporate Governance Documents Ameren makes available, free of charge through its Web site (www.ameren.com), the charters of the board of directors’ audit committee, human resources committee, nominating and corporate governance committee, nuclear oversight committee, and public policy committee. Also available on Ameren’s Web site are its corporate governance guidelines, director nomination policy, shareholder communications policy, Code of Business Conduct (referred to as the “Corporate Compliance Policy”) and its Code of Ethics for principal executive and senior financial officers. These documents are also available in print, free of charge upon written request, from the Office of the Secretary, Ameren Corporation, P.O. Box 66149, Mail Code 1370, St. Louis, MO 63166-6149. Ameren also makes available, free of charge through its Web site, the company’s annual reports on SEC Form 10-K, quarterly reports on SEC Form 10-Q, and its current reports on SEC Form 8-K, including the chief executive officer and chief financial officer certifications required to be filed with the Securities and Exchange Commission with the annual and quarterly reports. Online Stock Account Access Ameren’s Web site (www.ameren.com) allows registered shareholders to access their account information online. Shareholders can securely change their reinvestment options, view account summaries, receive DRPlus statements, vote their proxies and more through the Web site. This is a free service. Investor Services Ameren’s Investor Services representatives are available to help you each business day from 8:00 a.m. to 4:00 p.m. (Central Time). Please write or call: Ameren Services Company, Investor Services, P.O. Box 66887, St. Louis, MO 63166-6887. Phone: 314-554-3502 or toll-free: 800-255-2237. Email: invest@ameren.com Transfer Agent, registrar and Paying Agent The Transfer Agent, Registrar and Paying Agent for Ameren common stock and Union Electric Company, Central Illinois Light Company, Central Illinois Public Service Company and Illinois Power Company preferred stock is Ameren Services Company. Office Ameren Corporation One Ameren Plaza 1901 Chouteau Avenue St. Louis, MO 63103 314-621-3222 3/7/06 9:53:05 AM We build on our strengths. 14471rrdD2R2.indd 1 3/1/06 1:13:21 AM Geared Up 2 A m e r e n 2 0 0 5 14471rrdD2R2.indd 2 3/1/06 1:13:25 AM We create opportunity. 14471rrdD2R2.indd 3 3/3/06 5:18:47 PM Geared Up 4 A m e r e n 2 0 0 5 14471rrdD2R2.indd 4 3/1/06 1:13:34 AM We deliver results. 14471rrdD2R2.indd 5 3/3/06 3:15:31 PM Financial Highlights Ameren Consolidated (In millions, except per share amounts and as noted) Year Ended December 31, 2003 2004 2005 results of operations Operating revenues (millions) Operating expenses Operating income Income before cumulative effect of change in accounting principle Cumulative effect of change in accounting principle, net of income taxes Net income Common stock data Earnings per basic and diluted share (a) Dividends per common share Dividend yield (year-end) Market price per common share (year-end, closing) Shares outstanding (weighted average) Total market value of common shares (year-end) Book value per common share Balance sheet data Property and plant, net Total assets Long-term debt obligations, excluding current maturities Capitalization ratios Common equity Preferred stock Debt, net of cash Operating data Native electric sales (KwH) Interchange electric sales (KwH) Total electric sales (KwH) Native gas sales (thousands of MMBtus) Generating capacity at peak (MW) Net generation (KwH) Electric customers Gas customers $6,780 $5,135 $4,574 $5,496 $4,057 $3,484 $1,284 $1,078 $1,090 $628 $(22) $606 $3.13 $2.54 5.0% $530 $506 $ – $18 $530 $524 $2.84 $2.95 $2.54 $2.54 5.1% 5.5% $51.24 $50.14 $46.00 200.8 186.4 161.1 $10,489 $9,788 $7,492 $31.13 $29.71 $26.73 $13,572 $13,297 $10,920 $18,162 $17,450 $14,236 $5,354 $5,021 $4,070 52.5% 1.6% 45.9% 49.1% 47.5% 1.7% 2.0% 49.2% 50.5% 84,835 69,764 65,687 11,224 13,801 12,094 96,059 83,565 77,781 114,182 87,545 71,348 16,237 15,220 14,623 77,941 76,839 73,348 2.4 1.0 2.3 0.9 1.7 0.5 (a) 2005 excludes charges for the cumulative effect of a change in accounting principle of $22 million (11 cents per share), net of taxes. 2003 excludes gains for the cumulative effect of a change in accounting principle of $18 million (11 cents per share), net of taxes, and the settlement of a dispute over certain mine reclamation issues with a coal supplier of $31 million (19 cents per share), net of taxes. 6 A m e r e n 2 0 0 5 14471rrdD2R2.indd 6 3/3/06 4:11:17 PM Ameren Consolidated (In millions, except per share amounts and as noted) Year Ended December 31, 2005 2004 2003 Results of operations Operating revenues (millions) Operating expenses Operating income Income before cumulative effect of change in accounting principle Cumulative effect of change in accounting principle, net of income taxes Net income Common stock data Earnings per basic and diluted share (a) Dividends per common share Dividend yield (year-end) Market price per common share (year-end, closing) Shares outstanding (weighted average) Total market value of common shares (year-end) Book value per common share Long-term debt obligations, excluding current maturities Balance sheet data Property and plant, net Total assets Capitalization ratios Common equity Preferred stock Debt, net of cash Operating data Native electric sales (KwH) Interchange electric sales (KwH) Total electric sales (KwH) Native gas sales (thousands of MMBtus) Generating capacity at peak (MW) Net generation (KwH) Electric customers Gas customers $6,780 $5,135 $4,574 $5,496 $4,057 $3,484 $1,284 $1,078 $1,090 $628 $(22) $606 $3.13 $2.54 5.0% $530 $506 $ – $18 $530 $524 $2.84 $2.95 $2.54 $2.54 5.1% 5.5% $51.24 $50.14 $46.00 200.8 186.4 161.1 $10,489 $9,788 $7,492 $31.13 $29.71 $26.73 $13,572 $13,297 $10,920 $18,162 $17,450 $14,236 $5,354 $5,021 $4,070 52.5% 1.6% 45.9% 49.1% 47.5% 1.7% 2.0% 49.2% 50.5% 84,835 69,764 65,687 11,224 13,801 12,094 96,059 83,565 77,781 114,182 87,545 71,348 16,237 15,220 14,623 77,941 76,839 73,348 2.4 1.0 2.3 0.9 1.7 0.5 (a) 2005 excludes charges for the cumulative effect of a change in accounting principle of $22 million (11 cents per share), net of taxes. 2003 excludes gains for the cumulative effect of a change in accounting principle of $18 million (11 cents per share), net of taxes, and the settlement of a dispute over certain mine reclamation issues with a coal supplier of $31 million (19 cents per share), net of taxes. E A R N I N G S P E R S H A R E 3 1 3 $ . 5 9 2 $ . 4 8 2 $ . O P E R AT I N G R E V E N U E S 5 3 1 5 $ , 4 7 5 4 $ , 0 8 7 6 $ , ) s n o i l l i m n I ( N E T G E N E R AT I O N 9 3 8 6 7 , 1 4 9 7, 7 8 4 3 3 7 , ) s n o i l l i m n i H w K ( 03(a) 03 0404 05 05 (a) 03 03 0404 05 05 03 03 0404 05 05 AmerenIP, Plant Availability Drive 2005 Earnings Ameren’s operating earnings improved in 2005 resulting from the successful integration of Illinois Power Company and the greater availability of our low-cost coal-fired power plants. Illinois Power, now doing business as AmerenIP, added revenues of $1.3 billion, contributing to a total revenue increase of $1.6 billion. Record plant availability allowed us Ameren’s 64,000-square- mile service territory in Missouri and Illinois includes a diverse base of residential, commercial and large industrial customers in both urban and rural areas. Demand growth in this area is solid, averaging about 2 percent each year. PEORIA SPRINGFIELD DECATUR to enhance operating margins as we supplied increased native load demand resulting from ST. LOUIS warmer summer weather and took advantage of higher power prices on short-term energy sales. Ameren’s operating earnings also benefited from organic growth in our service territory and from the sale of certain assets from our leveraged lease portfolio. These benefits more than offset increased fuel and purchased power expenses, including higher costs of operating in the Midwest Independent Transmission System Operator Day Two energy market. In 2005, we also continued to focus on financial strength and flexibility, as evidenced by our 46% debt-to-equity ratio. Company and Subsidiary Headquarters Electric Service Territory Electric and Gas Service Territory For a more detailed discussion and analysis of fi nancial condition and results of operations, along with fi nancial statements and related footnotes, certifi cations required by the Securities and Exchange Commission and the New York Stock Exchange, risk factors and forward-looking statements for Ameren Corporation, see Ameren’s combined Annual Report on Form 10-K for the period ended December 31, 2005. That document was fi led with the Securities and Exchange Commission. A M E R E N 2 0 0 5 7 14471rrdD2R2.indd 7 3/3/06 6:17:58 PM Geared Up We build on our strengths. We build on our strengths. We build on our strengths. b ld b ld h h 14471rrdD2R2.indd 8 14471rrdD2R2.indd 8 1144447711rrrrddDD22RR22..iinnddddd d 8888 3/3/06 5:40:22 PM 3/3/06 5:40:22 PM 55::4400::2222 PPMM 33//33//0066 2 2 To My Fellow Shareholders, To m y F e L L o w S h A r e h o L d e r S , For our linemen, power plant workers and other that they are always “geared up” to meet any challenge employees, “geared up” means having the equipment and to do so with compassion and integrity. to do the job right and to do the job safely. But “geared up” is also an attitude – a commitment to being excited about the job at hand and ready to succeed, despite whatever challenges may be encountered. Illinois: Geared Up for a Changing regulatory Landscape One very significant issue affecting Ameren in 2006 is the changing regulatory landscape in Illinois. It is also how my senior management team and I feel as we head into 2006, a year that will be pivotal for the At year-end, a rate freeze that has been in place in Illinois since 1997 will expire – as will the power supply contracts future of your company. Ameren’s Illinois utilities currently hold. In many ways, 2005 was a year of setting the stage for the challenges and opportunities ahead. Throughout the year, we again kept the promises we made to you and our other stakeholders. For 2006, our plan is to stay focused on our core business as we do the hard work needed to: n Develop constructive solutions to important regulatory matters in Illinois and Missouri; n Continue to increase power plant availability and improve operations, while completing our compliance plans for new environmental regulations; n Continue leveraging the acquisitions of Central Illinois Light Company and Illinois Power Company; n Continue to improve customer service and reliability; and n Control costs in all areas of our business. When the rate freeze ends, electric rates at our three companies in Illinois will have been fixed or declining for up to 25 years. Since the 1997 rate freeze went into effect, costs have continued to rise, and Ameren’s Illinois utilities have invested about $1.4 billion in transmission and distribution infrastructure. In December 2005, our Illinois utilities filed proposals with the Illinois Commerce Commission (ICC) to increase the delivery service portion of their Illinois electric rates by $200 million so that we can begin recovering our increased costs. We expect a ruling from the ICC on these proposals and rate filings in mid-November 2006. Previously, in February 2005, we proposed a carefully monitored, fully transparent auction process for our Illinois utilities to procure power at the end of 2006 when our power supply contracts expire. The ICC unanimously approved our proposal in January 2006. The auction we proposed would allow us to recover purchased power costs once we begin procuring power in the energy We also have one other very important job in 2006 – markets. However, the ICC’s approval is subject to appeal. keeping the commitments we have made to our communities, particularly the areas affected by the Dec. 14, 2005, breach at our Taum Sauk pumped storage hydroelectric plant. As we have told our customers and other stakeholders, the switch from artificially low rates to market prices will mean higher electric rates. Certain Illinois legislators, the Illinois attorney general and the Illinois governor have The challenges of Taum Sauk are far from behind us. sought, and continue to seek, various methods, including However, our swift response to that crisis demonstrated legislation, to block the power procurement auction or that we live by our values in the good times and bad. the recovery of related costs for power supply resulting All of our employees stepped up to the plate to show from the auction through rates to customers. t s o m a l d n a c i r t c e e l n o i l l i m 4 2 . s e v r e s n e r e m A . i s o n i l l I d n a i r u o s s M n i i s r e m o t s u c s a g l a r u t a n n o i l l i m 1 Ameren is focused on its core business of generating electricity, delivering electricity and distributing natural gas for its 3.4 million customers in Missouri and Illinois. Industrial customers, like Keystone Steel & Wire of Peoria, Ill., depend on our reliable supply of energy to fuel their businesses and the local economy. A m e r e n 2 0 0 5 9 14471rrdD2R2.indd 9 3/6/06 8:22:14 AM Any decision or action that impairs our ability to fully will review the cost-of-service study and may also make rate recover costs from our electric customers in a timely recommendations based upon their analyses. manner could result in a host of adverse consequences for Ameren. We will continue to take the required actions to protect our legal and financial interests. As we have clearly stated in the past, we are willing to work to ease the burden of higher energy prices on our residential Ultimately, we will continue to work hard to keep our Missouri customers’ costs among the lowest in the nation, but we will work equally hard to ensure fair and timely recovery of our investments and costs. customers through a rate increase phase-in plan, as long Generation: Geared Up to meet Demand as such a plan allows for the full and timely recovery of our costs and does not adversely impact our credit ratings. missouri: Geared Up for a Potential rate Case You may recall that following the 2002 settlement of our Missouri electric rate case, approved by the Missouri Public Service Commission, AmerenUE began phasing in $110 million in electric rate cuts for our Missouri customers. After the final cuts took effect in 2004, rates were frozen through June 2006. It has been about 20 years since AmerenUE’s last electric rate increase. Our Missouri residential electric rates are now about 30 percent below average United States utility rates. Two-thousand-five was another solid year for our baseload power plants. They generated nearly 78 million megawatthours of power, another all-time record, and six of our Missouri and Illinois coal-fired facilities set new plant generation output records. Just as importantly, our largest coal-fired plant – AmerenUE’s Labadie Plant – had its first year ever with zero lost workday away accidents. One of the most amazing achievements for our generating fleet was the refueling and maintenance outage at our Callaway nuclear plant. This outage included replacing all four steam generators and turbine rotors, in addition to thousands of maintenance activities, modifications, inspections and tests throughout Meanwhile, since 2002 alone we have invested more the plant. than $2.3 billion in new lines, generating facilities and other infrastructure to serve our Missouri customers. We have made these investments as fuel, purchased power, benefits and other costs have risen significantly. As required by the settlement of our Missouri electric rate case, we submitted an electric cost-of-service study filing in late 2005. Also in 2005, a change in Missouri law enabled the Missouri Public Service Commission to provide utilities with mechanisms to recover fuel, Despite the massive amount of work, the outage was completed in only 63 days – a new world record for an outage that included the replacement of four steam generators. Significantly, the crews did the work with no accidents. As a result, we expect the Callaway plant to operate with even greater efficiency, reliability and safety for many years to come – a critical milestone at a time when the need for emission-free power is greater than ever. purchased power and environmental costs. We anticipate Though several of our plants are national leaders in controlling rules governing how these cost-recovery mechanisms emissions, the federal Clean Air Interstate Rule and Clean Air will be implemented to be finalized later this year. Mercury Rule, passed in 2005, call for even further reductions Several factors will determine what course of action in emissions of sulfur dioxide, nitrogen oxide and mercury. should be taken in resetting electric rates for Missouri. We estimate that our costs to comply with these new These include assessing the appropriate test year to regulations will range between $2.1 billion and $2.9 billion by use in a potential case to set future rates, economic 2016, and state plans currently being considered in Missouri and energy market conditions, and the status of the and Illinois may add even more to this estimate. Of course, fuel, purchased power and environmental cost recovery we support keeping our air clean, but we must do so in a rulemaking proceedings, among other things. The Missouri responsible manner, making sure the costs of environmental Public Service Commission staff and other stakeholders compliance are balanced with the benefits. d e x i f n e e b e v a h s e t a r ’ s n e r e m A . s r a e y 5 2 o t p u r o f g n n i i l c e d r o 1 0 A m e r e n 2 0 0 5 address critical economic development initiatives in the state. Druids Woodworking was one of many minority-owned and other businesses to benefit from $5.7 million in Ameren Community Development Corporation grants to date. Created with the 2002 Missouri Public Service Commission-approved settlement of AmerenUE’s Missouri electric rate case, the AmerenCDC grants 14471rrdD2R2.indd 10 3/3/06 5:01:04 PM Geared Up We create opportunity. 14471rrdD2R2.indd 11 3/1/06 1:14:06 AM Geared Up We deliver results. 14471rrdD2R2.indd 12 3/1/06 1:14:16 AM Finally, toward year-end 2005, we also announced AmerenUE’s purchase of three combustion turbine generating facilities, adding almost 1,500 megawatts of generating capacity. These purchases, subject to regulatory approval, will help us meet immediate generating capacity needs and improve AmerenUE’s flexibility in determining its need for future baseload generating plant additions. AmerenIP: Geared Up to Add Value Ameren also completed its first full year of ownership of Illinois Power Company in 2005. AmerenIP has added 12 cents per share to earnings since the acquisition date, Ameren’s Senior Management Team which was within our expectations. We also kept the commitments we made to the community – including Seated, left to right: Warner L. Baxter, Thomas R. Voss, Gary L. Rainwater. Standing, left to right: Scott A. Cisel, Daniel F. Cole, Richard J. Mark, Steven R. Sullivan, our commitments to invest in improved reliability for Charles D. Naslund, David A. Whiteley, Michael G. Mueller, the AmerenIP system and to increase the company’s Donna K. Martin, R. Alan Kelley and Andrew M. Serri. charitable contributions in the company’s service territory. AmerenIP is the second Illinois utility we have purchased And of course we are committed to tree-trimming – and restored to investment-grade quality, to the benefit one of our best defenses against outages. of customers, communities and employees. Our employees’ commitment to completing the work of integrating AmerenIP into our operation is a great example of teamwork – one of our core corporate values. As with the 2003 acquisition of Central Illinois Light Company, this deal was conservatively financed and swiftly completed, another demonstration of Ameren’s financial discipline and responsibility. In terms of grid reliability, Ameren is a member of the Midwest Independent Transmission System Operator, or MISO – a reliability organization for 1.1 million square miles of the upper Midwest. However, our participation in the MISO and its Day Two energy market has led to higher operating costs. We will continue to monitor these costs and work to control them – just as we control costs in all areas Ameren: Geared Up to Serve Customers of our business. Finally, in 2005 Ameren continued its initiative to become a performance leader in the critical areas of customer service and reliability. To sum up, I am proud of the work our employees have done to prepare us for 2006 and beyond. I look forward to sharing with you more details about the opportunities ahead at this year’s annual shareholders meeting, which For example, we have been employing voice recognition will be held at 9 a.m. on May 2, 2006, at the Saint Louis software that will allow our first responders to deliver Art Museum. information from cell phones directly into our automated outage analysis system, speeding our response time during major outages. We are also working with community leaders to improve Gary L. Rainwater emergency communication efforts when major storms strike. Chairman, Chief Executive Officer and President n i s r e d a e l y r t s u d n i e r a l s t n a p g n i t a r e n e g ’ s n e r e m A . l s e v e l i h g h t a i g n m r o f r e p d n a s n o s s i i m e g n i l l o r t n o c AmerenUE’s Callaway nuclear plant set a new world record for the shortest time taken to conduct a refueling outage that included replacing four steam generators – the giant “boilers” that produce steam for generating electricity. The plant also replaced its turbine rotors, increasing efficiency and durability for this critical part of Ameren’s generating portfolio. A m e r e n 2 0 0 5 1 3 14471rrdD2R2.indd 13 3/3/06 5:07:35 PM S TAT e m e n T O F C O r P O r AT e r e S P O n S I B I L I T y Ameren has incorporated a core set of values into its corporate strategic plan that provides the foundation for how the company conducts its business. These core values are fully integrated into all aspects of Ameren’s strategies, objectives and action plans. Ameren’s corporate core values are integrity, respect, stewardship, teamwork and commitment. More specfically, Ameren pledges special The environment obligations to: Safety Ameren’s commitment to protecting our employees, the public and the environment is a corporate value. We will provide a safe working environment for our employees, and we take seriously our responsibility to conduct business in a manner that protects the safety and health of our employees and the people Ameren is committed to protecting the environment. We believe that a sound environmental policy benefits our customers, shareholders and employees by enhancing the communities we serve. It is the duty of each employee to comply with environmental laws and regulations, and it is the responsibility of each operating group to ensure such compliance. of the communities we serve. This policy The Community guides our daily operations, and it will not be We define our success by the success of the compromised in our business endeavors. communities and customers we serve. By diversity To succeed in today’s business climate, Ameren believes it is essential to provide an environment where people are allowed to achieve to their fullest potential and are valued for their contributions to corporate goals. This is the essence of diversity at Ameren, listening to our customers, we develop programs and charitable giving guidelines that benefit our communities. Each year, the Ameren Corporation Charitable Trust donates millions of dollars to programs in education, services for the youth and elderly, and the environment in the company’s Missouri and Illinois service areas. where we seek to work through differences More information about Ameren’s and embrace variations in thoughts and work Corporate Governance policies can be found styles in order to achieve the best overall in the “Investors” area of our Web site, corporate performance. www.ameren.com. . o d e w g n h t y r e v e i f o t r a e h e h t t a e r a s e u a v l e r o c r u O 1 4 A m e r e n 2 0 0 5 ensure that funds are spread across our service area. The Abraham Lincoln Presidential Library and Museum in Springfield, Ill., received a $250,000 grant from the Ameren Corporation Charitable Trust. The library and museum houses the most complete collection of Lincoln documents and artifacts in the world. Ameren’s charitable giving guidelines 14471rrdD2R2.indd 14 3/1/06 1:14:24 AM Geared Up “Commitment is what transforms a promise into a reality.” – Abraham Lincoln 14471rrdD2R2.indd 15 3/3/06 4:49:06 PM A m e r e n c o r p o r AT i o n A n d S u b S i d i A r i e S o f f i c e r S Senior management Team other officers Gary L. Rainwater Chairman, Chief Executive Officer and President Warner L. Baxter Executive Vice President and Chief Financial Officer Thomas R. Voss Executive Vice President and Chief Operating Officer Scott A. Cisel * President and Chief Operating Officer, AmerenCILCO, AmerenCIPS and AmerenIP Daniel F. Cole* Senior Vice President, Administration R. Alan Kelley * Senior Vice President, Generation Richard J. Mark* Senior Vice President, Missouri Energy Delivery Donna K. Martin* Senior Vice President and Chief Human Resources Officer Michael G. Mueller* President, AmerenEnergy Fuels and Services Company Charles D. Naslund * Senior Vice President and Chief Nuclear Officer Andrew M. Serri * President, AmerenEnergy, Inc. and AmerenEnergy Marketing Company Steven R. Sullivan Senior Vice President, General Counsel and Secretary David A. Whiteley * Senior Vice President, Energy Delivery Jerre E. Birdsong Vice President and Treasurer Mark C. Birk* Vice President, Power Operations Maureen A. Borkowski * Vice President, Transmission Charles A. Bremer* Vice President, Information Technology and Ameren Services Center J. L. Davis* Vice President, Energy Delivery Gas Operations Support Ronald K. Evans* Vice President and Deputy General Counsel Scott A. Glaeser* Vice President, Gas Supply and System Control Adam C. Heflin* Vice President, Nuclear Operations Timothy E. Herrmann* Vice President, Engineering, Callaway Nuclear Plant Martin J. Lyons Vice President and Controller Michael L. Menne* Vice President, Environmental, Safety and Health Michael L. Moehn* Vice President, Corporate Planning Robert K. Neff * Vice President, Coal Supply and Transportation Craig D. Nelson* Vice President, Strategic Initiatives Gregory L. Nelson* Vice President and Tax Counsel Joseph M. Power* Vice President, Federal Legislative and Regulatory Affairs Robert L. Powers* Vice President, Generation Technical Services William J. Prebil * Vice President, Regional Operations David J. Schepers* Vice President, Energy Delivery Technical Services Shawn E. Schukar* Vice President, AmerenEnergy, Inc. Jerry L. Simpson* Vice President, AmerenEnergy Generating Company James A. Sobule* Vice President and Deputy General Counsel Dennis W. Weisenborn* Vice President, Supply Services Ronald C. Zdellar* Vice President, Energy Delivery Distribution Services * Officer of an Ameren Corporation subsidiary only Thanks to the Ameren employees who appeared in the 2005 Annual Report: Jorden Drummond, Rick Eastman, Phil Mansfield, Nathan Mifflin, Quentin Page, Heidi Powers and Ron Ray. At Druids Woodworking: Kimberly MacLean and Albert Morris. At Keystone Steel & Wire: Aaron Williams. 1 6 A m e r e n 2 0 0 5 14471rrdD2R2.indd 16 3/6/06 9:54:53 AM Geared Up I n v e S TO r I n f O r m AT I O n Common Stock and Dividend Information Ameren’s common stock is listed on the New York Stock Exchange (ticker symbol: AEE). Ameren began trading on January 2, 1998, following the merger of Union Electric Company and CIPSCO Inc. on December 31, 1997. Ameren common shareholders of record totaled 83,737 on December 31, 2005. The following table presents the price ranges and dividends paid per Ameren common share for each quarter during 2005 and 2004. AEE 2005 Quarter Ended March 31 June 30 September 30 December 31 AEE 2004 Quarter Ended March 31 June 30 September 30 December 31 High Low Close $52.00 58.84 56.77 54.46 $47.51 $49.01 48.70 55.30 53.49 52.05 51.24 49.61 Dividends Paid 63 1⁄2 ¢ 63 1⁄2 63 1⁄2 63 1⁄2 High Low Close $48.34 $44.91 $46.09 40.55 46.28 42.96 46.15 42.00 46.99 50.14 45.95 50.36 Dividends Paid 63 1⁄2 ¢ 63 1⁄2 63 1⁄2 63 1⁄2 Annual meeting The annual meeting of Ameren Corporation shareholders will convene at 9 a.m., Tuesday, May 2, 2006, at the Saint Louis Art Museum, One Fine Arts Drive, Forest Park, St. Louis, Missouri. The annual shareholder meetings of Central Illinois Light Company, Central Illinois Public Service Company, Illinois Power Company and Union Electric Company will be held at the same time. DrPlus Any person of legal age or entity, whether or not an Ameren shareholder, is eligible to participate in DRPlus, Ameren’s dividend reinvestment and stock purchase plan. Participants can: n make cash investments by check or automatic direct debit to their bank accounts to purchase Ameren common stock, totaling up to $120,000 annually, n reinvest their dividends in Ameren common stock or receive Ameren dividends in cash, and n place Ameren common stock certificates in safekeeping and receive regular account statements. For more information about DRPlus, you may obtain a prospectus from the company’s Investor Services representatives. Direct Deposit of Dividends All registered Ameren common and Union Electric Company, Central Illinois Light Company, Central Illinois Public Service Company and Illinois Power Company preferred shareholders r e p a P l d e c y c e R n o d e t n i r P . c n I , i n g s e D a t a b O : y h p a r g o t o h P j r o a M d n a i n g s e D page 6 Financial Highlights page 8 Letter to Shareholders page 14 Corporate Responsibility page 16 Ameren Corporation and Subsidiaries Officers Form 10-K inside back cover Investor Information A m e r e n 2 0 0 5 14471rrdD1R2.indd 2 can have their cash dividends automatically deposited to their bank accounts. This service gives shareholders immediate access to their dividend on the dividend payment date and eliminates the possibility of lost or stolen dividend checks. Corporate Governance Documents Ameren makes available, free of charge through its Web site (www.ameren.com), the charters of the board of directors’ audit committee, human resources committee, nominating and corporate governance committee, nuclear oversight committee, and public policy committee. Also available on Ameren’s Web site are its corporate governance guidelines, director nomination policy, shareholder communications policy, Code of Business Conduct (referred to as the “Corporate Compliance Policy”) and its Code of Ethics for principal executive and senior financial officers. These documents are also available in print, free of charge upon written request, from the Office of the Secretary, Ameren Corporation, P.O. Box 66149, Mail Code 1370, St. Louis, MO 63166-6149. Ameren also makes available, free of charge through its Web site, the company’s annual reports on SEC Form 10-K, quarterly reports on SEC Form 10-Q, and its current reports on SEC Form 8-K, including the chief executive officer and chief financial officer certifications required to be filed with the Securities and Exchange Commission with the annual and quarterly reports. Online Stock Account Access Ameren’s Web site (www.ameren.com) allows registered shareholders to access their account information online. Shareholders can securely change their reinvestment options, view account summaries, receive DRPlus statements, vote their proxies and more through the Web site. This is a free service. Investor Services Ameren’s Investor Services representatives are available to help you each business day from 8:00 a.m. to 4:00 p.m. (Central Time). Please write or call: Ameren Services Company, Investor Services, P.O. Box 66887, St. Louis, MO 63166-6887. Phone: 314-554-3502 or toll-free: 800-255-2237. Email: invest@ameren.com Transfer Agent, registrar and Paying Agent The Transfer Agent, Registrar and Paying Agent for Ameren common stock and Union Electric Company, Central Illinois Light Company, Central Illinois Public Service Company and Illinois Power Company preferred stock is Ameren Services Company. Office Ameren Corporation One Ameren Plaza 1901 Chouteau Avenue St. Louis, MO 63103 314-621-3222 3/7/06 9:53:05 AM 2005 Annual Report A m e r e n 2 0 0 5 A n n u a l R e p o r t a n d F o r m 1 0 - K P.O. Box 66149 St. Louis, Missouri 63166-6149 www.ameren.com Geared Up 14471rrdD1R2.indd 1 3/3/06 5:14:10 PM 

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