Transforming
For Our Future
202 1 ANNUAL R EPORT
Financial Highlights
AMEREN CONSOLIDATED
2021
2020
2019
(In millions, except per share amounts and as noted)
RESULTS OF OPERATIONS
Operating revenues
Operating expenses
Operating income
Net income attributable to Ameren common shareholders
COMMON STOCK DATA
Earnings per diluted share
Dividends per common share
Dividend yield (year-end)
Market price per common share (year-end closing)
Weighted-average common shares outstanding – diluted
Weighted-average common shares outstanding – basic
Total market value of common shares (year-end)
Book value per common share (year-end)
BAL ANCE SHEET DATA
Property, plant and equipment, net
Total assets
Long-term debt obligations, including current maturities
Total equity
$
$
$
$
$
$
$
$
$
$
$
$
$
OPERATING DATA
Electric sales (kilowatt-hours)
Natural gas sales (dekatherms in thousands)
Electric customers
Natural gas customers
$
$
$
$
$
$
$
$
$
$
$
$
$
6,394
5,061
1,333
990
3.84
2.20
2.5 %
89.01
257.6
256.3
22,938
37.64
29,261
35,735
13,067
9,829
73,088
193,681
2.4
0.9
5,794
4,494
1,300
871
3.50
2.00
2.6 %
78.06
248.7
247.0
19,773
35.29
26,807
32,030
11,086
9,080
71,907
193,761
2.4
0.9
$
$
$
$
$
$
$
$
$
$
$
$
$
5,910
4,643
1,267
828
3.35
1.92
2.6 %
76.80
247.1
245.6
18,908
32.73
24,376
28,933
9,357
8,201
73,629
205,899
2.4
0.9
1
Executive Chairman
To Our Fellow Shareholders:
President and CEO
In the fall of 2021, as part of our robust succession planning process, Ameren announced a new forward-thinking
leadership structure with the creation of an executive chairman position, effective Jan. 1, 2022. The executive chairman
role will focus on key strategic matters impacting the company, including the energy and economic policies that are
critical to the exciting transformation taking place in our industry, while the president and chief executive officer will
continue to be responsible for strategy development and day-to-day execution across the entire enterprise. Together,
we will continue to support our mission — To Power the Quality of Life for millions of electric and natural gas customers
throughout Missouri and Illinois, all while continuing to deliver strong results for shareholders.
We and the Ameren team remain passionate about creating value for our customers, shareholders and communities by
executing on our vision to Lead the Way to a Sustainable Energy Future by achieving transformative environmental goals,
delivering meaningful social impact, continuing robust corporate governance and delivering strong sustainable growth.
2021 AMEREN ANNUAL REPORT AS WE EMBARK ON THIS LEADERSHIP TRANSITION,
we do so keeping our customers at the center of everything we do to deliver safe, reliable, cleaner and affordable energy.
As testament to our focus on customers, we are proud to report that an industry-leading consumer sentiment survey recently
ranked Ameren Illinois first and Ameren Missouri third in residential customer satisfaction among our electric peers in the
Midwest. We deeply appreciate the extraordinary efforts made by our co-workers, day in and day out and throughout
the COVID-19 pandemic, to safely execute our strategy and deliver for our customers and the communities we serve.
We have and will continue to positively impact customers
and communities through environmental stewardship and are
making progress toward our goal of net-zero carbon emissions
by 2050. We are also supporting and partnering with local
nonprofits and organizations that create meaningful, long-
lasting social impact.
We are operating our company with a commitment to the
highest levels of ethical business practices and strong
corporate governance. And we are committed to continuous
improvement with an unwavering focus on providing ever-
growing value to our customers and to you, our shareholders.
TRANSFORMATIVE
ENVIRONMENTAL GOALS:
Committed to Net-Zero Emissions
In 2020, in connection with Ameren Missouri’s Integrated
Resource Plan filing with the Missouri Public Service
Commission, we established a goal of achieving net-zero
carbon emissions by 2050 across all operations.
To meet our goals, we’ve made significant investments
in renewable energy. In 2021, we saw the first year of
operation for our two large-scale wind facilities in northern
Missouri, which added 700 megawatts of generation through
an approximately $1 billion investment. In addition, we
are making significant electric and natural gas investments
in other innovative technologies that are transforming
the grid, making it cleaner, safer, more reliable, resilient
and secure. In addition, our Ameren natural gas distri-
bution systems are comprised almost entirely of
polyethylene and protective-coated steel pipelines,
with the remaining few miles of unprotected, leak-prone
steel pipe replaced in 2021, helping to further reduce
methane emissions from our
operations.
Greenhouse gas
reductions
will be amplified in Missouri
with the planned retirement
of our Meramec Energy Center
0NET
5
0
2
Y
B
ZERO
3
later this year and the expected accelerated closure of the
Rush Island Energy Center. In addition, the expansion of
solar energy programs offers additional opportunities to
grow renewable energy for our customers in both Missouri
and Illinois.
year-round community outreach and educational initiatives.
We once again hosted a DE&I Leadership Summit for the
Ameren team and community leaders featuring local and
national speakers, to provide a unique learning and engage-
ment experience.
7
1
0
2
E
C
N
S
I
invested more
We have
than
$3 billion since 2017 in transmission
the
infrastructure,
strengthening
our
backbone
and
of
grid
enabling greater
levels of clean
renewable energy to be accessed. Throughout 2021, we
led efforts to revolutionize transportation through the
expansion of electric vehicle charging stations across
the Midwest, supporting our own initiatives and national
efforts led by the Edison Electric Institute (EEI) and others.
And we further demonstrated our commitment to a sustain-
able energy future by naming our first chief sustainability
officer to help guide these continued efforts.
SOCIAL IMPACT:
Promoting Diversity, Equity and Inclusion
in Our Business and Communities
We are committed to diversity, equity and inclusion (DE&I)
at our company and in our communities. Though this strong
commitment starts at the highest levels of leadership, we
expect the entire Ameren team to live our core values, which
include respect, teamwork and DE&I.
initiatives
Throughout 2021, we enhanced our DE&I
through successful programs,
including our Employee
Resource Groups. These multicultural groups are led by
our co-workers who support our business goals through
Our industry-recognized supplier diversity program continued
to drive inclusive economic growth opportunities for minority-
owned, women-owned and veteran-owned businesses
through diverse supplier spend that totaled approximately
$900 million in 2021. In addition, we have once again
partnered with the University of Missouri–St. Louis
Diversity, Equity &
Inclusion Accelerator program to
put underrepresented entrepreneurs at the center of a
purpose-driven initiative, to fuel their creative business
models and address the region’s economic disparities.
These efforts and more have garnered Ameren several
national recognitions, including being named by DiversityInc
as the nation’s Top Utility for DE&I in 2021; the EEI Excellence
Award for contributions to diverse supplier inclusion and
development; as well as being named a Best Place to Work
for Disability Inclusion by the Disability Equality Index.
Investing in Our Communities
The pandemic has had a long-lasting impact on the
communities we serve. So many families find themselves
in unforeseen financial and personal situations. At Ameren,
we’ve been working since the onset of the pandemic to provide
multiple avenues of support for those struggling economically.
Our ongoing efforts include the use of flexible payment plans
to assist those facing financial hardship. In addition, we’ve
worked with customers to connect them to millions of dollars
A few Awards and Recognitions earned by Ameren during 2021:
2021 AMEREN ANNUAL REPORT3B$
4
OUR
VALUES
in energy assistance from state and federal sources and
expanded unique company-funded programs, such as Clean
Slate in Missouri and Fresh Start in Illinois, to assist those
who may not qualify for other assistance programs.
We continue to build on our long history of philanthropic
support. In addition to supporting donations targeting energy
and other assistance programs, the company donated
more than $10 million in 2021 to nonprofits focused on
addressing critical human needs, advancing wellness in
our communities, improving educational opportunities for
children and job readiness for young adults, encouraging
revitalization efforts to grow the regional economy, and
much more. We as a team also contributed our time and
talents throughout the year to various volunteer initiatives.
These included distributing school supplies to educators from
underserved school districts and giving out energy-efficient
air conditioners to seniors and people with disabilities to
help them stay safe and cool during the summer. Ameren
remains focused on serving our communities and giving back
to our neighbors in times of need.
GOVERNANCE
Our steadfast commitment to our corporate values —
including integrity — means that we always strive to
conduct our business with the highest ethical standards.
This is key to our long-range success, and this tone is set
at the top by our experienced, engaged board of directors
and senior leadership. This diverse group of leaders oversees
the pursuit of our strategic objectives and sets a high bar
for performance.
SAFETY AND SECURITY
NEVER COMPROMISE
INTEGRITY
DO THE RIGHT THING
RESPECT
VALUE OTHERS
DIVERSITY, EQUITY AND INCLUSION
BE COURAGEOUS
COMMITMENT TO EXCELLENCE
BRING YOUR BEST
TEAMWORK
WORK TOGETHER
ACCOUNTABILITY
OWN YOUR ACTIONS AND INACTIONS
STEWARDSHIP
LEAVE IT BETTER
STRATEGY
TRANSFORMING FOR OUR FUTUREPhoto taken pre-COVID-19.
VALUES
5
tied
To ensure ongoing progress, our board of directors has
established executive compensation metrics
to
sustainable
long-term earnings and dividend growth,
operating performance, safety, DE&I and progress toward
clean energy goals. These metrics are reinforced by
empowering and encouraging all Ameren co-workers to
speak up and engage on issues impacting the company, our
customers and the communities we serve.
Results are important, but more important is how we get them.
Guided by an enduring strategy, lasting core values, including
a promise to always do business the right way, and a
continuous improvement mindset — we will achieve even
higher heights together.
Delivering
SUSTAINABLE GROWTH
Our long-term sustainable growth strategy is bringing
value to our customers and providing strong results for
our shareholders.
Ameren is effectively managing billions of dollars of infra-
structure investments, working with stakeholders to put in
place constructive energy policies and achieve constructive
regulatory outcomes. This includes the recent Illinois clean
energy and Missouri securitization bills passed in their
respective states that we expect will have a positive impact
on future investments for the benefit of our customers.
Our infrastructure investments, coupled with our disciplined
cost management, are delivering results for our customers
and shareholders. Our customers experience electric rates
among the lowest in the country — well below the national
average — and reliability that has improved 12% since 2013.
Our weather-normalized earnings per share grew nearly 8%
over 2020 results. Since the transition to an all rate-regulated
business in 2013, Ameren has delivered weather-normalized
core earnings per share growth of 84%, or an approximate 8%
compound annual growth rate. Reflecting the confidence of
Ameren’s board of directors, we recently announced a more
than 7% increase to our dividend, further demonstrating
WE WILL INVEST AND OPERATE IN A MANNER CONSISTENT WITH EXISTING REGULATORY
FRAMEWORKS, ADVOCATE FOR RESPONSIBLE POLICIES AND CAPITALIZE ON INVESTMENT
OPPORTUNITIES TO DELIVER SUPERIOR CUSTOMER AND SHAREHOLDER VALUE.
AMEREN’S
STRATEGY
2021 AMEREN ANNUAL REPORT
6
our successful growth strategy — the ninth consecutive
year increasing our dividend. For a second consecutive year,
Ameren received the total shareholder return Index Award
from the EEI as the top-ranking mid-cap company in our
industry. This recognition signals successful execution of our
strategy to deliver superior customer and shareholder value.
Over the next five years, we plan to execute approxi-
mately $17 billion in capital projects to enhance the reliability
and resiliency of our energy grid, transition to a cleaner
and more diverse generation portfolio, and implement
new digital technologies and cybersecurity tools.
These investments are expected to deliver strong com-
pound annual earnings per share growth of 6% to 8% from
2022–2026 (using our 2022 earnings per diluted share
guidance range midpoint of $4.05 as the base).* Looking
investment
ahead, we see customer value-enhancing
opportunities for Ameren totaling more than $45 billion
over the next decade to achieve our clean energy trans-
formation. These factors, when coupled with a strong
dividend, position Ameren to continue delivering sustainable
and superior long-term value.
CLOSING
Our relentless focus on our customers and the com-
munities we serve has driven our ability to deliver
ever-increasing value to them
in terms of reliability,
cleaner energy, affordability and community service,
even during
the challenging period we have been
operating under for more than two years due to the
1.0
0.9
0.8
0.7
0.6
0.5
IMPROVED RELIABILITY
0.89
BETTER
0.78
2021
As measured by the System Average Interruption
Frequency Index (SAIFI). Represents the average
of Ameren Illinois and Ameren Missouri.
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AFFORDABLE RATES
13.62
12.89
9.70
10.06
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0
Ameren Illinois’ residential rates are
22% lower than the Midwest Average
and 26% lower than the U.S. Average.
Ameren Missouri’s residential rates
are 25% lower than the Midwest Average
and 29% lower than the U.S. Average.
Average Residential Electric Prices
are provided by Edison Electric Institute,
“Typical Bills and Average Rates Report”
for the 12 months ended June 30, 2021.
*Effective as of Feb. 18, 2022, Earnings Conference Call.
TRANSFORMING FOR OUR FUTURE2013 12%
$4.15
$3.75
$3.35
$2.95
$2.55
$2.15
$1.75
WEATHER-NORMALIZED CORE
EARNINGS PER DILUTED SHARE
84%
SINCE 2013
2
8
3
$
.
4
5
.
3
$
2
3
3
$
.
5
0
3
$
.
8
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$
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$
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$
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$
3
1
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2
4
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2
5
1
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6
1
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7
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0
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8
1
0
2
9
1
0
2
0
2
0
2
1
2
0
2
See inside back cover for GAAP to core
and weather-normalized earnings per
share reconciliations.
pandemic. Moreover, execution of our strategy will
continue to deliver on a strong long-term sustainability
value proposition.
For us, being able to lead such a dedicated and committed
Ameren team is an honor and humbling responsibility.
As we look ahead, central to our success will be keeping
our customers at the center of our strategy and our focus
on continuous improvement, including:
> Our ongoing commitment to Ameren’s strategy and
organizational values.
> Continuing to enhance customer satisfaction.
> Investing in a smarter, more reliable and resilient grid,
as well as in cleaner energy resources.
> Driving a clean energy transformation in a
responsible fashion.
> Managing costs to continue keeping customers’
electric and natural gas bills affordable.
> Advocating for constructive energy policies to support
investment and benefits to our customers.
> Supporting regional economic development
and electrification.
7
$2.27
$2.16
$2.05
$1.94
$1.83
$1.72
$1.61
$1.50
DIVIDENDS PAID PER SHARE
$2.20
38%
SINCE 2013
$2.00
$1.92
$1.85
$1.78
$1.72
$1.66
$1.60
$1.61
2013
2014
2015
2016
2017
2018
2019
2020
2021
Unrounded dividends 2015–2018 are $1.655, $1.715, $1.7775 and $1.8475.
TOTAL SHAREHOLDER RETURN: 2013–2021
AMEREN
218%
PHILADELPHIA UTILITY INDEX
171%
S&P 500 UTILITY INDEX
149%
120%
140%
160%
180%
200%
220%
Eight-Year Total Cumulative Shareholder Return, Dec. 31, 2013 through Dec. 31, 2021.
WE BELIEVE THAT IF WE DELIVER
for our customers and keep them at the center of every-
thing we do, we’ll deliver for you, our shareholders. That’s
what we’ve been able to do for many years and will
continue to do as we transform for our future together.
It’s exciting to work with such a dedicated team that is
committed to our mission, To Power the Quality of Life,
while successfully executing our strategy and delivering
tremendous value to our customers, communities and
shareholders. And even more exciting is that this team is
well positioned to continue doing so. Thank you for your
continued support of Ameren.
WARNER L. BAXTER
Executive Chairman
Ameren Corporation
MARTIN J. LYONS JR.
President and CEO
Ameren Corporation
March 1, 2022
*Effective as of Feb. 18, 2022, Earnings Conference Call.
2021 AMEREN ANNUAL REPORT 8
Executive Leadership Team
9. MARY P. HEGER
Senior Vice President,
Customer Experience,
Ameren Illinois
10. MARK C. LINDGREN
Senior Vice President,
Corporate Communications
and Chief Human
Resources Officer,
Ameren Services
11. CHONDA J. NWAMU
Senior Vice President,
General Counsel
and Secretary,
Ameren Corporation
1. WARNER L. BAXTER
Executive Chairman,
Ameren Corporation
2. MARTIN J. LYONS JR.
President and Chief
Executive Officer,
Ameren Corporation
3. RICHARD J. MARK
Chairman and President,
Ameren Illinois
4. MARK C. BIRK
Chairman and President,
Ameren Missouri
5. SHAWN E. SCHUKAR
Chairman and President,
Ameren Transmission
Company of Illinois
6. MICHAEL L. MOEHN
Executive Vice President
and Chief Financial Officer,
Ameren Corporation;
Chairman and President,
Ameren Services
7. BHAVANI AMIRTHALINGAM
Senior Vice President and
Chief Digital Information Officer,
Ameren Services
8. FADI M. DIYA
Senior Vice President and
Chief Nuclear Officer,
Ameren Missouri
2
1
4
8
3
7
5
6
9
10
11
TRANSFORMING FOR OUR FUTURE Ameren Corporation & Subsidiaries Officers
9
KEVIN D. ANDERS
Vice President, Operations
and Technical Services,
Ameren Missouri
RYAN M. ARNOLD
Vice President,
Division Operations,
Ameren Missouri
AJAY K. ARORA
Vice President and Chief
Renewable Development Officer,
Ameren Missouri
STEPHANIE P. BANKER
Vice President, Nuclear
Engineering and Support,
Ameren Missouri
KRISTA G. BAUER
Vice President, Human Resources,
Ameren Services
JAMES C. BLESSING
Vice President, Regulatory
Policy and Energy Supply,
Ameren Illinois
ROBERT L. CHILDS JR.
Vice President,
Digital Products,
Ameren Services
BARRY L. COX
Nuclear Site Vice President,
Ameren Missouri
KEVIN A. DEGRAW
Vice President, Nuclear
Corporate Oversight,
Ameren Services
MATTHEW A. FORCK
Vice President, Federal
Legislative Affairs,
Ameren Services
MARK J. FRONMULLER
Senior Vice President, Strategy,
Innovation, Sustainability and Risk,
Ameren Services
PARDEEP S. GILL
Vice President, Supply Chain
and Chief Procurement Officer,
Ameren Services
JERRY L. GRANT
Vice President, Financial Services,
Ameren Services
MICHAEL K. GREEN
Vice President and Chief
Information Security Officer,
Ameren Services
SHARON HARVEY DAVIS
Vice President, Diversity,
Equity and Inclusion and
Chief Diversity Officer,
Ameren Services
GEORGE T. JUSTICE
Vice President, Electric Operations
and Technical Services,
Ameren Illinois
ROBIN M. KIES
Vice President, Financial Services
and Performance Management,
Ameren Illinois
ERIC M. KOZAK
Vice President, Gas Operations
and Distribution,
Ameren Illinois
TIMOTHY E. LAFSER
Vice President, Power Operations,
Ameren Missouri
STEPHEN C. LEE
Vice President and Deputy
General Counsel,
Ameren Services
DAVID R. LOESCH
Vice President and Controller,
Ameren Corporation
GERALYNN M. LORD
Vice President, Corporate
Communications,
Ameren Services
RYAN J. MARTIN
Vice President, Internal Audit
and Chief Audit Executive,
Ameren Services
GWEN G. MIZELL
Vice President, Innovation and
Chief Sustainability Officer,
Ameren Services
MICHAEL G. MUELLER
Vice President,
Economic Development,
Ameren Illinois
TARA K. OGLESBY
Vice President,
Customer Experience,
Ameren Missouri
TIMOTHY E. REAGAN
Vice President, Corporate
Security and Crisis Management,
Ameren Services
JOHN D. RHEA
Vice President and Chief
Ethics and Compliance Officer,
Ameren Services
DAVID ROSENBERG
Vice President, Digital
Technology and Operations,
Ameren Services
DARRYL T. SAGEL
Vice President and Treasurer,
Ameren Corporation
ERIC V. SEIDLER
Senior Vice President,
Corporate Safety, Security
and Operations Oversight,
Ameren Services
THERESA A. SHAW
Senior Vice President, Finance
and Chief Accounting Officer,
Ameren Corporation
JAMIE SIMLER
Vice President, Federal
Regulatory Affairs,
Ameren Services
PATRICK E. SMITH
Vice President, Economic,
Community and Business
Development,
Ameren Missouri
BRUCE A. STEINKE
Chief Transformation Officer,
Ameren Services
HAROON TAQI
Vice President, Digital Portfolio,
Architecture and Governance,
Ameren Services
DAVID N. WAKEMAN
Senior Vice President, Operations
and Technical Services,
Ameren Illinois
DENNIS W. WEISENBORN
Vice President, Corporate Safety,
Ameren Services
LUKE N. WOLLIN
Vice President, Engineering
and Construction,
Ameren Services
WARREN T. WOOD
Vice President, Regulatory
and Legislative Affairs,
Ameren Missouri
PLEA SE JOIN U S FO R T HE ANNUAL MEETI NG OF SHAREHO LDE RS MAY 12 ONLIN E AT 10 A.M. CD T
The officers also include the Ameren Executive Leadership Team on Page 8.
The officer and Board of Directors listings are as of Feb. 22, 2022.
2021 AMEREN ANNUAL REPORT 10
Ameren’s Board of Directors
1. WARNER L. BAXTER
Executive Chairman,
Ameren Corporation
2. CYNTHIA J. BRINKLEY
Retired Chief
Administrative and
Markets Officer,
Centene Corporation
Human Resources
Committee; Nuclear,
Operations and
Environmental
Sustainability
Committee
3. CATHERINE S. BRUNE
Retired President,
Allstate Protection
Eastern Territory of
Allstate Insurance
Company
Nominating and
Corporate
Governance
Committee (Chair);
Audit and Risk
Committee
4. J. EDWARD
COLEMAN
Retired Executive
Chairman, CIOX Health
Audit and Risk
Committee (Chair);
Finance Committee
5. WARD H. DICKSON
Retired Executive Vice
President and Chief
Financial Officer,
WestRock Company
Audit and Risk
Committee;
Finance Committee
(Chair)
6. NOELLE K. EDER
Executive Vice
President and Global
Chief Information
Officer, Cigna
Corporation
Audit and Risk
Committee;
Nominating and
Corporate
Governance
Committee
7. ELLEN M.
FITZSIMMONS
Chief Legal Officer
and Head of
Public Affairs,
Truist Financial
Corporation
Finance Committee;
Nuclear, Operations
and Environmental
Sustainability
Committee
11. JAMES C. JOHNSON
Retired General Counsel,
Loop Capital Markets LLC
Human Resources
Committee (Chair);
Nominating and Corporate
Governance Committee
12. STEVEN H. LIPSTEIN
Retired President and
Chief Executive Officer,
BJC HealthCare
Human Resources
Committee; Nominating
and Corporate Governance
Committee
8. RAFAEL FLORES
Retired Senior Vice
President and Chief
Nuclear Officer,
Luminant Corporation
Nominating and Corporate
Governance Committee;
Nuclear, Operations
and Environmental
Sustainability Committee
9. RICHARD J. HARSHMAN
Retired Executive
Chairman, President and
Chief Executive Officer,
Allegheny Technologies
Incorporated
Lead Director; Human
Resources Committee;
Nuclear, Operations
and Environmental
Sustainability
Committee (Chair)
13. MARTIN J. LYONS JR.
President and Chief
Executive Officer,
Ameren Corporation
14. LEO S. MACKAY JR.
Senior Vice President,
Ethics and Enterprise
Assurance, Lockheed
Martin Corporation
Audit and Risk
Committee; Nuclear,
Operations and
Environmental
Sustainability Committee
1
4
3
2
8
10. CRAIG S. IVEY
Retired President,
Consolidated Edison
Company of
New York Inc.
Finance Committee;
Nuclear, Operations
and Environmental
Sustainability Committee
6
7
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12
5
10
14
9
13
TRANSFORMING FOR OUR FUTURE UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
☒
Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
for the fiscal year ended December 31, 2021
OR
☐
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
for the transition period from to
Commission
File Number
1-14756
1-2967
1-3672
Exact name of registrant as specified in its charter;
State of Incorporation;
Address and Telephone Number
Ameren Corporation
(Missouri Corporation)
1901 Chouteau Avenue
St. Louis, Missouri 63103
(314) 621-3222
Union Electric Company
(Missouri Corporation)
1901 Chouteau Avenue
St. Louis, Missouri 63103
(314) 621-3222
Ameren Illinois Company
(Illinois Corporation)
10 Executive Drive
Collinsville, Illinois 62234
(618) 343-8150
IRS Employer
Identification No.
43-1723446
43-0559760
37-0211380
Securities Registered Pursuant to Section 12(b) of the Act:
The following security is registered pursuant to Section 12(b) of the Securities Exchange Act of 1934 and is listed on the New York Stock
Exchange:
Title of each class
Common Stock, $0.01 par value per share
Trading Symbol(s)
AEE
Name of each exchange on which registered
New York Stock Exchange
Securities Registered Pursuant to Section 12(g) of the Act:
Registrant
Union Electric Company
Title of each class
Preferred Stock, cumulative, no par value, stated value $100 per share
Ameren Illinois Company
Preferred Stock, cumulative, $100 par value
Indicate by checkmark if each registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Ameren Corporation
Union Electric Company
Ameren Illinois Company
Yes
Yes
Yes
☒
☒
☒
No
No
No
Indicate by checkmark if each registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Ameren Corporation
Union Electric Company
Ameren Illinois Company
Yes
Yes
Yes
☐
☐
☐
No
No
No
Indicate by checkmark whether the registrants: (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and
(2) have been subject to such filing requirements for the past 90 days.
Ameren Corporation
Union Electric Company
Ameren Illinois Company
Yes
Yes
Yes
☒
☒
☒
No
No
No
☐
☐
☐
☒
☒
☒
☐
☐
☐
Indicate by checkmark whether each registrant has submitted electronically every Interactive Data File required to be submitted pursuant
to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was
required to submit such files).
Ameren Corporation
Union Electric Company
Ameren Illinois Company
Yes
Yes
Yes
☒
☒
☒
No
No
No
☐
☐
☐
Indicate by checkmark whether each registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting
company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and
“emerging growth company” in Rule 12b-2 of the Exchange Act.
Ameren Corporation
Large accelerated filer
☒ Accelerated filer
Union Electric Company
Large accelerated filer
☐ Accelerated filer
Ameren Illinois Company
Large accelerated filer
☐ Accelerated filer
Smaller reporting company
Smaller reporting company
Smaller reporting company
☐ Non-accelerated filer
☐ Emerging growth company
☐ Non-accelerated filer
☐ Emerging growth company
☐ Non-accelerated filer
☐ Emerging growth company
☐
☐
☒
☐
☒
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Ameren Corporation
Union Electric Company
Ameren Illinois Company
Indicate by check mark whether each registrant has filed a report on and attestation to its management’s assessment of the
effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the
registered public accounting firm that prepared or issued its audit report.
Ameren Corporation
Union Electric Company
Ameren Illinois Company
Indicate by checkmark whether each registrant is a shell company (as defined in Rule 12b-2 of the Act).
Ameren Corporation
Union Electric Company
Ameren Illinois Company
Yes
Yes
Yes
☐
☐
☐
No
No
No
☐
☐
☐
☒
☐
☐
☒
☒
☒
As of June 30, 2021, the aggregate market value of Ameren Corporation’s common stock, $0.01 par value, (based upon the closing
price of the common stock on the New York Stock Exchange on June 30, 2021) held by nonaffiliates was $20,481,306,104. All of the shares
of common stock of the other registrants were held by Ameren Corporation as of June 30, 2021.
The number of shares outstanding of each registrant’s classes of common stock as of January 31, 2022, were as follows:
Registrant
Ameren Corporation
Title of each class of common stock
Common stock, $0.01 par value per share
Union Electric Company
Common stock, $5 par value per share, held by Ameren Corporation
Ameren Illinois Company
Common stock, no par value, held by Ameren Corporation
DOCUMENTS INCORPORATED BY REFERENCE
Shares
257,724,783
102,123,834
25,452,373
Portions of the definitive proxy statement of Ameren Corporation and portions of the definitive information statements of Union Electric
Company and Ameren Illinois Company for the 2022 annual meetings of shareholders are incorporated by reference into Part III of this
Form 10-K.
This combined Form 10-K is separately filed by Ameren Corporation, Union Electric Company, and Ameren Illinois Company. Each
registrant hereto is filing on its own behalf all of the information contained in this annual report that relates to such registrant. Each registrant
hereto is not filing any information that does not relate to such registrant, and therefore makes no representation as to any such information.
(This page has been left blank intentionally.)
TABLE OF CONTENTS
GLOSSARY OF TERMS AND ABBREVIATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FORWARD-LOOKING STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART I
Item 1.
Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business Segments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rates and Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transmission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supply of Electric Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Power Generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Renewable Energy and Zero Emission Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer Energy-Efficiency Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural Gas Supply for Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Human Capital Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The COVID-19 Pandemic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Industry Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Available Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 1A.
Unresolved Staff Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 1B.
Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 2.
Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 3.
Item 4.
Mine Safety Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Information about Our Executive Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART II
Item 5.
Item 6.
Item 7.
Item 7A.
Item 8.
Market for Registrants’ Common Equity, Related Stockholder Matters, and Issuer Purchase of Equity Securities . . . . . .
(Reserved) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Management’s Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . . . .
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liquidity and Capital Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Regulatory Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounting Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quantitative and Qualitative Disclosures About Market Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Statements and Supplementary Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Union Electric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 1. Summary of Significant Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 2. Rate and Regulatory Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 3. Property, Plant, and Equipment, Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 4. Short-term Debt and Liquidity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 5. Long-term Debt and Equity Financings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 6. Other Income, Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 7. Derivative Financial Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 8. Fair Value Measurements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Note 9. Callaway Energy Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 10. Retirement Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 11. Stock-based Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 12. Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 13. Related-party Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 14. Commitments and Contingencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 15. Supplemental Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 16. Segment Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure . . . . . . . . . . . . . . . . . . . . . .
Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Directors, Executive Officers, and Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Executive Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters . . . . . . . . . . . . . .
Certain Relationships and Related Transactions and Director Independence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Principal Accountant Fees and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 9.
Item 9A.
Item 9B.
Item 9C.
PART III
Item 10.
Item 11.
Item 12.
Item 13.
Item 14.
PART IV
Exhibits and Financial Statement Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 15.
Form 10-K Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 16.
EXHIBIT INDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
131
134
140
141
144
147
151
154
159
159
159
159
159
160
160
161
161
162
167
168
176
This report contains “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements should be read with the cautionary statements and important factors under the heading “Forward-
looking Statements.” Forward-looking statements are all statements other than statements of historical fact, including those statements that
are identified by the use of the words “anticipates,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” and similar expressions.
GLOSSARY OF TERMS AND ABBREVIATIONS
We use the words “our,” “we” or “us” with respect to certain information that relates to Ameren, Ameren Missouri, and Ameren Illinois,
collectively. When appropriate, subsidiaries of Ameren Corporation are named specifically as their various business activities are discussed.
2020 IRP – Integrated Resource Plan, a long-term nonbinding plan that Ameren Missouri filed with the MoPSC in September 2020, which
includes Ameren Missouri’s preferred approach for meeting customers’ projected long-term energy needs in a cost-effective manner while
maintaining system reliability and achieving a goal of net-zero CO2 emissions by 2050.
Ameren – Ameren Corporation and its subsidiaries on a consolidated basis. In references to financing activities, acquisition activities, or
liquidity arrangements, Ameren is defined as Ameren Corporation, the parent.
Ameren Companies – Ameren Corporation, Ameren Missouri, and Ameren Illinois, collectively, which are individual registrants within the
Ameren consolidated group.
Ameren Illinois – Ameren Illinois Company, an Ameren Corporation subsidiary that operates rate-regulated electric transmission, electric
distribution, and natural gas distribution businesses in Illinois, doing business as Ameren Illinois.
Ameren Illinois Electric Distribution – An Ameren Corporation and Ameren Illinois financial reporting segment consisting of the rate-
regulated electric distribution business of Ameren Illinois.
Ameren Illinois Natural Gas – An Ameren Corporation and Ameren Illinois financial reporting segment consisting of the rate-regulated
natural gas distribution business of Ameren Illinois.
Ameren Illinois Transmission – An Ameren Illinois financial reporting segment consisting of the rate-regulated electric transmission
business of Ameren Illinois.
Ameren Missouri – Union Electric Company, an Ameren Corporation subsidiary that operates a rate-regulated electric generation,
transmission, and distribution business and a rate-regulated natural gas distribution business in Missouri, doing business as Ameren
Missouri. Ameren Missouri is a financial reporting segment of Ameren Corporation.
Ameren Services – Ameren Services Company, an Ameren Corporation subsidiary that provides support services, such as accounting,
legal, treasury, and asset management services, to Ameren (parent) and its subsidiaries.
Ameren Transmission – An Ameren Corporation financial reporting segment primarily consisting of the aggregated electric transmission
businesses of Ameren Illinois and ATXI.
ARO – Asset retirement obligations.
ATM program – At-the-market equity distribution program.
ATXI – Ameren Transmission Company of Illinois, an Ameren Corporation subsidiary that operates a FERC rate-regulated electric
transmission business in the MISO.
Baseload – The minimum amount of electric power delivered or required over a given period of time at a steady rate.
Base rate – The service rate charged to customers, which varies by segmentation within customer classes, excludes rates applicable to
riders, and is determined by the ratemaking process used to establish the annual revenue requirement applicable to such service.
Btu – British thermal unit, a standard unit for measuring the quantity of heat energy required to raise the temperature of one pound of water
by one degree Fahrenheit.
CCR – Coal combustion residuals, which include fly ash, bottom ash, boiler slag, and flue gas desulfurization materials generated from
burning coal to generate electricity.
CCR Rule – Coal Combustion Residuals Rule, a rule promulgated by the EPA that established regulations for the disposal of CCR in landfills
and surface impoundments, and the operation and closure of such landfills and surface impoundments.
CO2 – Carbon dioxide.
COVID-19 pandemic – The global pandemic resulting from the outbreak of the 2019 novel coronavirus, which causes coronavirus disease
2019 (COVID-19).
Customer demand charges – Revenues from nonresidential customers based on their peak demand during a specified time interval.
Cooling degree days – The summation of positive differences between the average daily temperature and a 65-degree Fahrenheit base.
This statistic is useful as an indicator of electricity demand by residential and commercial customers for summer cooling.
Credit Agreements – The Illinois Credit Agreement and the Missouri Credit Agreement, collectively.
CSAPR – Cross-State Air Pollution Rule, an EPA rule that requires states that contribute to air pollution in downwind states to limit air
emissions from fossil-fuel-fired electric generating units.
CT – Combustion turbine, used primarily for peaking electric generation capacity.
DCA – Delivery charge adjustment, a rate-adjustment mechanism that decouples natural gas revenues from actual sales volumes for
Ameren Missouri’s natural gas business and allows Ameren Missouri to adjust customer rates without a traditional regulatory rate review,
subject to MoPSC prudence reviews. This mechanism ensures that Ameren Missouri’s natural gas revenues are not affected by changes in
sales volumes, including those resulting from deviations from normal weather conditions. This rate-adjustment mechanism will be replaced by
the WNAR in late February 2022.
Deferred payment arrangement – A payment option that allows certain Ameren Missouri and Ameren Illinois retail customers to pay a utility
bill balance over a period of time, generally over a period of up to 12 months. On a temporary basis through June 2021, Ameren Illinois’
residential retail customers could have elected to pay a utility bill balance over a period of up to 18 months.
Dekatherm – A standard unit of energy equivalent to approximately one million Btus.
1
DOE – Department of Energy, a United States government agency.
DRPlus – Ameren Corporation’s dividend reinvestment and direct stock purchase plan.
Electric margins – Electric revenues less fuel and purchased power costs.
EMANI – European Mutual Association for Nuclear Insurance.
EPA – Environmental Protection Agency, a United States government agency.
ERISA – Employee Retirement Income Security Act of 1974, as amended.
ESG – Environmental, social, and governance.
Excess deferred income taxes – Amounts resulting from the revaluation of deferred income taxes subject to regulatory ratemaking, which
will be collected from, or refunded to, customers. Deferred income taxes are revalued when federal or state income tax rates change, and the
offset to the revaluation of deferred income taxes subject to regulatory ratemaking is recorded to a regulatory asset or liability.
Exchange Act – Securities Exchange Act of 1934, as amended.
FAC – Fuel adjustment clause, a fuel and purchased power rate-adjustment mechanism that allows Ameren Missouri to recover or refund,
through customer rates, 95% of the variance in net energy costs from the amount set in base rates without a traditional regulatory rate
review, subject to MoPSC prudence reviews.
FEJA – Future Energy Jobs Act, an Illinois law that allows Ameren Illinois to earn a return on its electric energy-efficiency investments,
decouples electric distribution revenues from sales volumes, offers customer rebates for installing distributed generation, and includes
extensions and modifications of certain IEIMA performance-based framework provisions, among other things. The decoupling provisions
ensure that electric distribution revenues are not affected by changes in sales volumes, including those resulting from deviations from normal
weather conditions.
FERC – Federal Energy Regulatory Commission, a United States government agency that regulates utility businesses and associated
activities of holding and related service companies, including Ameren (parent), Ameren Missouri, Ameren Illinois, ATXI, and Ameren
Services.
GAAP – Generally accepted accounting principles in the United States.
Heating degree days – The summation of negative differences between the average daily temperature and a 65-degree Fahrenheit base.
This statistic is useful as an indicator of demand for electricity and natural gas for winter heating by residential and commercial customers.
ICC – Illinois Commerce Commission, a state agency that regulates Illinois utility businesses, including Ameren Illinois and ATXI.
IEIMA – Illinois Energy Infrastructure Modernization Act, an Illinois law that established a performance-based formula process for determining
electric distribution service rates. Ameren Illinois expects to establish electric distribution rates and reconcile related revenue requirements
under this process through 2023.
IETL – Illinois Energy Transition Legislation, Illinois legislation enacted in September 2021 that, among other things, gives Ameren Illinois the
option to establish new electric distribution rates through either a traditional regulatory rate review, which may be based on a future test year,
or an MYRP for a four-year period.
Illinois Credit Agreement – Ameren’s and Ameren Illinois’ $1.1 billion senior unsecured credit agreement, which expires in December 2025,
unless extended.
IPA – Illinois Power Agency, a state government agency that has broad authority to assist in the procurement of electric power for residential
and small commercial customers.
IRS – Internal Revenue Service, a United States government agency.
Kilowatthour – A measure of electricity consumption equivalent to the use of 1,000 watts of power over one hour.
MATS – Mercury and Air Toxics Standards, an EPA rule that limits emissions of mercury and other air toxics from coal- and oil-fired electric
generating units.
MEEIA – A rate-adjustment mechanism allowed under the Missouri Energy Efficiency Investment Act, a Missouri law that allows electric
utilities to recover costs and performance incentives, if any, related to MoPSC-approved customer energy-efficiency programs without a
traditional regulatory rate review, subject to MoPSC prudence reviews.
MEEIA 2019 – Ameren Missouri’s portfolio of customer energy-efficiency programs, recovery of lost electric margins, and performance
incentives for March 2019 through December 2024, pursuant to Missouri law, as approved by the MoPSC in December 2018.
Megawatthour or MWh – One thousand kilowatthours.
MGP – Manufactured gas plant.
MISO – Midcontinent Independent System Operator, Inc., an RTO.
Missouri Credit Agreement – Ameren’s and Ameren Missouri’s $1.2 billion senior unsecured credit agreement, which expires in December
2025, unless extended.
Missouri Environmental Authority – Environmental Improvement and Energy Resources Authority of the state of Missouri, a governmental
body authorized to finance environmental projects by issuing tax-exempt bonds and notes.
Mmbtu – One million Btus.
Money pool – Borrowing agreements among Ameren and its subsidiaries to coordinate and provide for certain short-term cash and working
capital requirements.
Moody’s – Moody’s Investors Service, Inc., a credit rating agency.
MoPSC – Missouri Public Service Commission, a state agency that regulates Missouri utility businesses, including Ameren Missouri.
MTM – Mark-to-market.
2
MW – Megawatt.
MYRP – Multi-year rate plan, a four-year electric distribution service rate plan allowed to be filed with the ICC under the IETL. Under a multi-
year rate plan, the ICC would approve base rates for electric distribution service charged to customers for each calendar year of a four-year
period. Ameren Illinois would be allowed to reconcile each year's base rates to its actual revenue requirement, subject to a reconciliation cap
with exclusions for certain costs and riders, and adjustments to the ICC-determined ROE for performance incentives and penalties. Subject to
a constructive outcome regarding the ICC’s determination of performance metrics, Ameren Illinois anticipates filing an MYRP for rates
effective beginning in 2024.
Native load – End-use retail customers whom Ameren Missouri or Ameren Illinois is obligated to serve by statute, franchise, contract, or
other regulatory requirement.
Natural gas margins – Natural gas revenues less natural gas purchased for resale.
NAV – Net asset value per share.
NEIL – Nuclear Electric Insurance Limited, which includes all of its affiliated companies.
NERC – North American Electric Reliability Corporation.
Net energy costs – Net energy costs, as defined in the FAC, which include fuel, fuel transportation, certain fuel additives, ash disposal costs
and revenues, emission allowances, and purchased power costs, net of off-system sales and capacity revenues. Substantially all
transmission revenues and charges are excluded from net energy costs. The MoPSC’s March 2020 electric rate order changed the FAC to
include certain fuel additives and ash disposal costs and revenues as of April 2020. Pursuant to the MoPSC’s December 2021 electric rate
order, effective February 28, 2022, all off-system sales from the High Prairie Renewable and Atchison Renewable energy centers will be
excluded as those sales will be included in the RESRAM. Prior to this change, 95% of these sales were included in the FAC and 5% were
included in the RESRAM.
Net metering – Net metering allows customers who generate their own electricity or subscribe to receive output from eligible facilities to feed
electricity they do not use back into the grid. The customers receive a credit for the energy they add to the grid.
NOx – Nitrogen oxides.
NPNS – Normal purchases and normal sales.
NRC – Nuclear Regulatory Commission, a United States government agency that regulates commercial nuclear power plants and uses of
nuclear materials.
NSPS – New Source Performance Standards, provisions under the Clean Air Act.
NSR – New Source Review provisions of the Clean Air Act, which include Nonattainment New Source Review and Prevention of Significant
Deterioration regulations.
NYSE – New York Stock Exchange, LLC.
OCI – Other comprehensive income (loss) as defined by GAAP.
Off-system sales revenues – Revenues from other than native load sales, including wholesale sales.
PGA – Purchased gas adjustment tariffs, a rate-adjustment mechanism that permits prudently incurred natural gas costs to be recovered
directly from utility customers without a traditional regulatory rate review, subject to regulatory prudence reviews.
PHMSA – Pipeline and Hazardous Materials Safety Administration.
PISA – Plant-in-service accounting regulatory mechanism, a mechanism under Missouri law that permits electric utilities to defer and recover
85% of the depreciation expense and earn a return at the applicable WACC on rate base for certain property, plant, and equipment placed in
service, and not included in base rates, subject to MoPSC prudence reviews. The rate base on which the return is calculated incorporates
qualifying capital expenditures not included in base rates, as well as changes in total accumulated depreciation excluding retirements and
plant-related deferred income taxes. The regulatory asset for accumulated PISA deferrals earns a return at the applicable WACC. For
Ameren Missouri, the PISA is effective through December 2023, unless Ameren Missouri requests and receives MoPSC approval of an
extension through December 2028.
QIP – Qualifying infrastructure plant, a rate-adjustment mechanism that provides Ameren Illinois’ natural gas business with recovery of, and a
return on, qualifying infrastructure plant investments that are placed in service between regulatory rate reviews, subject to ICC prudence
reviews. Without legislative action, the QIP will expire in December 2023.
Rate base – The basis on which a rate-regulated utility is permitted to earn a WACC. This basis is the net investment in assets used to
provide utility service, which generally consists of in-service property, plant, and equipment, net of accumulated depreciation and
accumulated deferred income taxes, inventories, and, depending on jurisdiction, construction work in progress.
Regulatory lag – The exposure to differences in costs incurred and actual sales volumes as compared with the associated amounts included
in customer rates. Rate increase requests in traditional regulatory rate reviews can take up to 11 months to be acted upon by the MoPSC and
the ICC. As a result, revenue increases authorized by regulators will lag changing costs and sales volumes when based on historical periods.
RESRAM – Renewable energy standard rate-adjustment mechanism, a regulatory mechanism allowed under Missouri law that enables
Ameren Missouri to recover costs relating to compliance with Missouri’s renewable energy standard, including recovery of investments in
wind generation and other renewables, and earn a return at the applicable WACC on those investments not already provided for in customer
rates or any other recovery mechanism by adjusting customer rates on an annual basis without a traditional regulatory rate review, subject to
MoPSC prudence reviews. RESRAM regulatory assets will earn carrying costs at short-term interest rates.
3
Revenue requirement – The cost of providing utility service to customers, which is calculated as the sum of a utility’s recoverable operating
expenses, a return at the weighted-average cost of capital on rate base, and an amount for income taxes, based on the currently applicable
statutory income tax rates and amortization associated with excess deferred income taxes.
RFP – Request for proposal.
Rider – A rate-adjustment mechanism that allows for the recovery, or refund, through customer rates of amounts specified by the mechanism
without a traditional regulatory rate review.
ROE – Return on common equity.
RTO – Regional transmission organization.
S&P – S&P Global Ratings, a credit rating agency.
SEC – Securities and Exchange Commission, a United States government agency.
SERC – SERC Reliability Corporation, one of the regional electric reliability councils organized for coordinating the planning and operation of
the nation’s bulk power supply.
Smart Energy Plan – Ameren Missouri’s plan to upgrade Missouri’s electric grid through at least 2026, which assumes continuation of the
PISA. Upgrades include investments to improve reliability and accommodate more renewable energy.
SO2 – Sulfur dioxide.
STEM – Science, technology, engineering, and math.
TCJA – The Tax Cuts and Jobs Act of 2017, federal income tax legislation enacted in December 2017, which significantly changed the tax
laws applicable to business entities. The TCJA includes specific provisions related to regulated public utilities.
Test year – The selected period of time, typically a 12-month period, for which a utility’s historical or forecasted operating results are used to
determine the revenue requirement in a regulatory rate review.
Tracker – a regulatory recovery mechanism that allows for the deferral of differences between actual costs incurred and base level expenses
included in customer rates as a regulatory asset or liability. The difference is included in base rates and recovered from, or refunded to,
customers over a period of time as determined in a subsequent regulatory rate review.
TSR – Total shareholder return, the cumulative return of a common stock or index over a specified period of time assuming all dividends are
reinvested.
VBA – Volume balancing adjustment, a rate-adjustment mechanism for Ameren Illinois’ natural gas business that decouples natural gas
revenues from actual sales volumes and allows Ameren Illinois to adjust customer rates without a traditional regulatory rate review, subject to
ICC prudence reviews. The rider ensures that Ameren Illinois’ natural gas revenues are not affected by changes in sales volumes, including
those resulting from deviations from normal weather conditions, for residential and small nonresidential customers.
WACC – Weighted-average cost of capital, which is the weighted-average cost of debt and equity, as allowed by the applicable regulator.
WNAR – Weather normalization adjustment rider, a rate-adjustment mechanism that allows Ameren Missouri to adjust natural gas delivery
service rates charged to residential customers without a traditional regulatory rate review, subject to MoPSC prudence reviews, when
deviations from normal weather conditions cause natural gas revenues to vary from the related revenue requirement approved by the MoPSC
in the previous regulatory rate review. This rate-adjustment mechanism will replace the DCA beginning February 28, 2022.
Zero emission credit – A credit that represents the environmental attributes of one MWh of energy produced from certain zero emissions
nuclear-powered generation facilities, which certain Illinois utilities are required to purchase pursuant to the FEJA.
FORWARD-LOOKING STATEMENTS
Statements in this report not based on historical facts are considered “forward-looking” and, accordingly, involve risks and uncertainties
that could cause actual results to differ materially from those discussed. Although such forward-looking statements have been made in good
faith and are based on reasonable assumptions, there is no assurance that the expected results will be achieved. These statements include
(without limitation) statements as to future expectations, beliefs, plans, projections, strategies, targets, estimates, objectives, events,
conditions, and financial performance. In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995,
we are providing this cautionary statement to identify important factors that could cause actual results to differ materially from those
anticipated. The following factors, in addition to those discussed within Risk Factors under Part I, Item 1A, of this report, and elsewhere in this
report and in our other filings with the SEC, could cause actual results to differ materially from management expectations suggested in such
forward-looking statements:
•
•
regulatory, judicial, or legislative actions, and any changes in regulatory policies and ratemaking determinations, that may change
regulatory recovery mechanisms, such as those that may result from the impact of a final ruling to be issued by the United States Court
for the Eastern District of Missouri regarding its September 2019 remedy order for the Rush Island Energy Center, the July 2020 appeal
filed by Ameren Missouri, Ameren Illinois, and ATXI challenging the refund period related to the FERC’s May 2020 order determining the
allowed base ROE under the MISO tariff, and the July 2020 appeal filed by Ameren Missouri, Ameren Illinois, and ATXI challenging the
FERC’s rehearing denials in the transmission formula rate revision cases;
the length and severity of the COVID-19 pandemic, and its impacts on our business continuity plans and our results of operations,
financial position, and liquidity, including but not limited to: changes in customer demand resulting in changes to sales volumes;
customers’ payment for our services and their use of deferred payment arrangements; the health, welfare, and availability of our
4
workforce and contractors; supplier disruptions; delays in the completion of construction projects, which could impact our expected
capital expenditures and rate base growth; changes in how we operate our business and increased data security risks as a result of
remote working arrangements for a significant portion of our workforce; and our ability to access the capital markets on reasonable
terms and when needed;
the effect of Ameren Illinois’ use of the performance-based formula ratemaking framework for its electric distribution service under the
IEIMA, which will establish and allow for a reconciliation of electric distribution service rates through 2023, its participation in electric
energy-efficiency programs, and the related impact of the direct relationship between Ameren Illinois’ ROE and the 30-year United
States Treasury bond yields;
the effect and duration of Ameren Illinois’ election to either utilize traditional regulatory rate reviews or MYRPs for electric distribution
service ratemaking effective for rates beginning in 2024;
the effect on Ameren Missouri’s investment plan and earnings if an extension to use PISA is not sought by Ameren Missouri or approved
by the MoPSC;
the effect on Ameren Missouri of any customer rate caps pursuant to Ameren Missouri’s election to use the PISA, including an extension
of use beyond 2023, if requested by Ameren Missouri and approved by the MoPSC;
the effects of changes in federal, state, or local laws and other governmental actions, including monetary, fiscal, and energy policies;
the effects of changes in federal, state, or local tax laws, regulations, interpretations, or rates, and challenges to the tax positions taken
by the Ameren Companies, if any, as well as resulting effects on customer rates;
the effects on energy prices and demand for our services resulting from technological advances, including advances in customer energy
efficiency, electric vehicles, electrification of various industries, energy storage, and private generation sources, which generate
electricity at the site of consumption and are becoming more cost-competitive;
the effectiveness of Ameren Missouri’s customer energy-efficiency programs and the related revenues and performance incentives
earned under its MEEIA programs;
Ameren Illinois’ ability to achieve the performance standards applicable to its electric distribution business and electric customer energy-
efficiency goals and the resulting impact on its allowed ROE;
our ability to control costs and 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 affordability of our services for our
customers;
the cost and availability of fuel, such as low-sulfur coal, natural gas, and enriched uranium used to produce electricity; the cost and
availability of purchased power, zero emission credits, renewable energy credits, emission allowances, and natural gas for distribution;
and the level and volatility of future market prices for such commodities and credits;
disruptions in the delivery of fuel, failure of our fuel suppliers to provide adequate quantities or quality of fuel, or lack of adequate
inventories of fuel, including nuclear fuel assemblies from the one NRC-licensed supplier of Ameren Missouri’s Callaway Energy Center
assemblies;
the cost and availability of transmission capacity for the energy generated by Ameren Missouri’s energy centers or required to satisfy
Ameren Missouri’s energy sales;
the effectiveness of our risk management strategies and our use of financial and derivative instruments;
the ability to obtain sufficient insurance, or in the absence of insurance, the ability to timely recover uninsured losses from our
customers;
the impact of cyberattacks on us or our suppliers, which could, among other things, result in the loss of operational control of energy
centers and electric and natural gas transmission and distribution systems and/or the loss of data, such as customer, employee,
financial, and operating system information;
business and economic conditions, which have been affected by, and will be affected by the length and severity of, the COVID-19
pandemic, including the impact of such conditions on interest rates and inflation;
disruptions of the capital markets, deterioration in credit metrics of the Ameren Companies, or other events that may have an adverse
effect on the cost or availability of capital, including short-term credit and liquidity;
the actions of credit rating agencies and the effects of such actions, including any impacts on our credit ratings that may result from the
economic conditions of the COVID-19 pandemic;
the inability of our counterparties to meet their obligations with respect to contracts, credit agreements, and financial instruments,
including as they relate to the construction and acquisition of electric and natural gas utility infrastructure and the ability of counterparties
to complete projects which is dependent upon the availability of necessary materials and equipment, including those that are affected by
disruptions in the global supply chain caused by the COVID-19 pandemic;
the impact of weather conditions and other natural phenomena on us and our customers, including the impact of system outages and
the level of wind and solar resources;
the construction, installation, performance, and cost recovery of generation, transmission, and distribution assets;
the effects of failures of electric generation, electric and natural gas transmission or distribution, or natural gas storage facilities systems
and equipment, which could result in unanticipated liabilities or unplanned outages;
the operation of Ameren Missouri’s Callaway Energy Center, including planned and unplanned outages, as well as the ability to recover
costs associated with such outages and the impact of such outages on off-system sales and purchased power, among other things;
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•
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Ameren Missouri’s ability to recover the remaining investment and decommissioning costs associated with the retirement of an energy
center, as well as the ability to earn a return on that remaining investment and those decommissioning costs;
the impact of current environmental laws and new, more stringent, or changing requirements, including those related to NSR, and CO2,
other emissions and discharges, Illinois emission standards, cooling water intake structures, CCR, energy efficiency, and wildlife
protection, that could limit or terminate the operation of certain of Ameren Missouri’s energy centers, increase our operating costs or
investment requirements, result in an impairment of our assets, cause us to sell our assets, reduce our customers’ demand for electricity
or natural gas, or otherwise have a negative financial effect;
the impact of complying with renewable energy standards in Missouri and Illinois and with the zero emission standard in Illinois;
Ameren Missouri’s ability to construct and/or acquire wind, solar, and other renewable energy generation facilities, retire energy centers,
and implement new or existing customer energy efficiency programs, including any such construction, acquisition, retirement, or
implementation in connection with its Smart Energy Plan, integrated resource plan, or emissions reduction goals, and to recover its cost
of investment, related return, and, in the case of customer energy-efficiency programs, any lost margins in a timely manner, which is
affected by the ability to obtain all necessary regulatory and project approvals, including certificates of convenience and necessity from
the MoPSC or any other required approvals for the addition of renewable resources;
the availability of federal production and investment tax credits related to renewable energy and Ameren Missouri’s ability to use such
credits; the cost of wind, solar, and other renewable generation and storage technologies; and our ability to obtain timely interconnection
agreements with the MISO or other RTOs at an acceptable cost for each facility;
advancements in carbon-free generation and storage technologies, and the impact of constructive federal and state energy and
economic policies with respect to those technologies;
labor disputes, work force reductions, changes in future wage and employee benefits costs, including those resulting from changes in
discount rates, mortality tables, returns on benefit plan assets, and other assumptions;
the impact of negative opinions of us or our utility services that our customers, investors, legislators, regulators or other stakeholders
may have or develop, which could result from a variety of factors, including failures in system reliability, failure to implement our
investment plans or to protect sensitive customer information, increases in rates, negative media coverage, or concerns about ESG
practices;
the impact of adopting new accounting guidance;
the effects of strategic initiatives, including mergers, acquisitions, and divestitures;
legal and administrative proceedings; and
acts of sabotage, war, terrorism, or other intentionally disruptive acts.
New factors emerge from time to time, and it is not possible for management to predict all of such factors, nor can it assess the impact of
each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially
from those contained or implied in any forward-looking statement. Given these uncertainties, undue reliance should not be placed on these
forward-looking statements. Except to the extent required by the federal securities laws, we undertake no obligation to update or revise
publicly any forward-looking statements to reflect new information or future events.
ITEM 1.
BUSINESS
GENERAL
PART I
Ameren, formed in 1997 and headquartered in St. Louis, Missouri, is a public utility holding company whose primary assets are its equity
interests in its subsidiaries. Ameren’s subsidiaries are separate, independent legal entities with separate businesses, assets, and liabilities.
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. 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.
For additional information about the development of our businesses, our business operations, and factors affecting our results of
operations, financial position, and liquidity, see Management’s Discussion and Analysis of Financial Condition and Results of Operations
under Part II, Item 7, and Note 1 – Summary of Significant Accounting Policies and Note 2 – Rate and Regulatory Matters under Part II,
Item 8, of this report.
6
BUSINESS SEGMENTS
Ameren has four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren
Transmission. The Ameren Missouri segment includes all of the operations of Ameren Missouri. Ameren Illinois Electric Distribution consists
of the electric distribution business of Ameren Illinois. Ameren Illinois Natural Gas consists of the natural gas business of Ameren Illinois.
Ameren Transmission primarily consists of the aggregated electric transmission businesses of Ameren Illinois and ATXI.
Ameren Missouri has one segment. Ameren Illinois has three segments: Ameren Illinois Electric Distribution, Ameren Illinois Natural
Gas, and Ameren Illinois Transmission.
An illustration of the Ameren Companies’ reporting structures is provided below:
(a)
The Ameren Transmission segment also includes allocated Ameren (parent) interest charges, as well as other subsidiaries engaged in electric transmission project
development and investment.
RATES AND REGULATION
Rates
The rates that Ameren Missouri, Ameren Illinois, and ATXI are allowed to charge for their utility services significantly influence the
results of operations, financial position, and liquidity of these companies and Ameren. 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.
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. These decisions, as well as the
regulatory lag involved in the process of obtaining approval for new customer rates, could have a material adverse effect on the results of
operations, financial position, and liquidity of the Ameren Companies. 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. 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 a future test year, and the use of trackers and riders.
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The MoPSC regulates rates and other matters for Ameren Missouri. The ICC regulates rates and other matters for Ameren Illinois. The
MoPSC and the ICC regulate non-rate utility matters for ATXI. ATXI does not have retail distribution customers; therefore, the MoPSC and
the ICC do not have authority to regulate ATXI’s rates. The FERC regulates Ameren Missouri’s, Ameren Illinois’, and ATXI’s cost-based rates
for the wholesale transmission and distribution of energy in interstate commerce and various other matters discussed below under General
Regulatory Matters.
For additional information on Ameren Missouri, Ameren Illinois, and ATXI rate matters, see Results of Operations and Outlook in
Management’s Discussion and Analysis of Financial Condition and Results of Operations under Part II, Item 7, Quantitative and Qualitative
Disclosures About Market Risk under Part II, Item 7A, and Note 2 – Rate and Regulatory Matters under Part II, Item 8, of this report.
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 2022, except as noted:
Ameren Missouri
Electric service(b)(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas delivery service(b) . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois
Electric distribution delivery service(f) . . . . . . . . . . . . . . . .
Natural gas delivery service(g) . . . . . . . . . . . . . . . . . . . . .
Electric transmission service(h) . . . . . . . . . . . . . . . . . . . .
ATXI
Electric transmission service(h) . . . . . . . . . . . . . . . . . . . .
Rate
Regulator
Effective
Rate Order
Issued In
MoPSC
MoPSC
December 2021(d)
December 2021(e)
ICC
ICC
FERC
FERC
December 2021
January 2021
(g)
(g)
Allowed
ROE
Percent of
Common Equity
Rate Base
(in billions)
Portion of
Ameren’s 2021
Operating
(a)
Revenues
(d)
(e)
7.36%
9.67%
10.52%
(d)
(e)
51.00%
52.00%
54.02%
10.52%
59.96%
$10.2
$0.3
$3.7
$2.1
$3.0
$1.4
50%
2%
25%
15%
5%
3%
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
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.
New rates approved by the MoPSC’s December 2021 electric and natural gas rate orders will become effective on February 28, 2022.
Ameren Missouri’s electric generation, transmission, and delivery service rates are bundled together and charged to retail customers under a combined electric service
rate. Because the bundled rates charged to MoPSC retail customers include the revenue requirement associated with Ameren Missouri's FERC-regulated transmission
services, the table above does not separately reflect a FERC-authorized rate base or allowed ROE.
This rate order did not specify an ROE, but specified that Ameren Missouri’s September 30, 2021 capital structure, which was composed of 51.97% common equity, will be
used in the PISA and RESRAM.
This rate order did not specify an ROE or a capital structure.
Ameren Illinois electric distribution delivery service rates are updated annually and become effective each January. This rate order was based on 2020 actual costs,
expected net plant additions for 2021, and the annual average of the monthly yields during 2020 of the 30-year United States Treasury bonds plus 580 basis points, which
was 1.56%. Ameren Illinois’ 2022 electric distribution delivery service revenues will be based on its 2022 actual recoverable costs, rate base, common equity percentage,
and an allowed ROE, as calculated under the IEIMA’s performance-based formula ratemaking framework.
This rate order was based on a 2021 future test year.
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. For additional information regarding this order and related requests for rehearing, see Note 2 – Rate and Regulatory Matters under Part II, Item 8, of this
report.
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. 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.
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. The SERC is one
of six regional entities representing 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 regional entities of the NERC work to safeguard the reliability of
the bulk power systems throughout North America. If any of Ameren Missouri, Ameren Illinois, or ATXI is found not to be in compliance with
these mandatory reliability standards, it could incur substantial monetary penalties and other sanctions.
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Under the Public Utility Holding Company Act of 2005, the FERC and the state public utility regulatory agencies in each state Ameren
and its subsidiaries operate in may access books and records of Ameren and its subsidiaries that are found to be relevant to costs incurred
by Ameren’s rate-regulated subsidiaries that may affect jurisdictional rates. The act also permits the MoPSC and the ICC to request that the
FERC review cost allocations by Ameren Services to other Ameren subsidiaries.
Operation of Ameren Missouri’s Callaway Energy Center is subject to regulation by the NRC. The license for the Callaway Energy
Center expires in 2044. Ameren Missouri’s hydroelectric Osage Energy Center and pumped-storage hydroelectric Taum Sauk Energy Center,
as licensed projects under the Federal Power Act, are subject to FERC regulations affecting, among other aspects, the general operation and
maintenance of the projects. The licenses for the Osage Energy Center and the Taum Sauk Energy Center expire in 2047 and 2044,
respectively. Ameren Missouri’s Keokuk Energy Center and its dam on the Mississippi River between Hamilton, Illinois, and Keokuk, Iowa,
are operated under authority granted by an Act of Congress in 1905.
For additional information on regulatory matters, see 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.
Environmental Matters
Our electric generation, transmission, and distribution and natural gas distribution and storage operations must comply with a variety of
statutes and regulations relating to the protection of the environment and human health and safety. These environmental statutes and
regulations are comprehensive and include the storage, handling, and disposal of waste materials, emergency planning and response
requirements, limitations and standards applicable to discharges from our facilities into the air or water that are enforced through permitting
requirements, and wildlife protection laws, including those related to endangered species. These environmental regulations could also affect
the availability of, the cost of, and the demand for electricity and natural gas sold to Ameren Missouri’s and Ameren Illinois’ customers as well
as the demand for off-system sales. Federal, state, and local authorities continually revise these regulations, which adds uncertainty to our
planning process and to the ultimate implementation of these or other new or revised regulations. Failure to comply with these laws could
have a material adverse effect on us. We could be subject to criminal or civil penalties by regulatory agencies, or we could be ordered by the
courts to pay private parties. Except as indicated in this report, we believe that we are in material compliance with existing laws that currently
apply to our operations.
For discussion of environmental matters, including NOx and SO2 emission reduction requirements, regulation of CO2 emissions,
wastewater discharge standards, remediation efforts, CCR management regulations, and a discussion of litigation against Ameren Missouri
with respect to NSR, the Clean Air Act, and Missouri law in connection with projects at Ameren Missouri’s Rush Island Energy Center, see
Note 14 – Commitments and Contingencies under Part II, Item 8, of this report.
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 energy centers of Ameren Missouri, and had a peak demand of 7,390 MWs in 2021. The AMIL balancing authority area includes the load
of Ameren Illinois, and had a peak demand of 8,504 MWs in 2021. 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. Ameren Missouri is authorized by the
MoPSC to participate in the MISO through May 2024. Ameren Missouri is periodically required to make a filing with the MoPSC regarding its
continued participation in the MISO. The next filing is due in 2023.
SUPPLY OF ELECTRIC POWER
Ameren Missouri
Ameren Missouri’s electric supply is primarily generated from its energy centers. Factors that could cause Ameren Missouri to purchase
power include, among other things, energy center outages, the fulfillment of renewable energy requirements, extreme weather conditions, the
availability of power at a cost lower than its generation cost, and the lack of sufficient owned generation.
Ameren Missouri files a long-term nonbinding integrated resource plan with the MoPSC every three years. The most recent integrated
resource plan, filed in September 2020, includes 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. In August 2021, the MoPSC issued an order
affirming the plan’s compliance with Missouri law. The plan targets cleaner and more diverse sources of energy generation, including solar,
wind, hydro, and nuclear power, and supports increased investment in new energy technologies. It also includes expanding renewable
sources by adding 3,100 MWs of renewable generation by the end of 2030 and a total of 5,400 MWs of renewable generation by 2040,
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inclusive of the High Prairie Renewable and Atchison Renewable energy centers, the expectation that Ameren Missouri will seek NRC
approval for an extension of the operating license for the Callaway Energy Center, expanding customer energy-efficiency programs, adding
cost-effective demand response programs, accelerating the retirement dates of the Sioux and Rush Island coal-fired energy centers to 2028
and 2039, respectively, and retiring the remaining coal-fired energy centers as they reach the end of their useful lives, including the Meramec
Energy Center by the end of 2022. The addition of a renewable generation facility 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. Ameren Missouri
would be adversely affected if the MoPSC does not allow recovery of the remaining investment and decommissioning costs associated with
the retirement of an energy center, as well as the ability to earn a return on that remaining investment and those decommissioning costs. In
December 2021, the MoPSC issued an order in Ameren Missouri’s 2021 electric service regulatory rate review, which, among other things,
approved a change in the depreciable lives of the Sioux and Rush Island energy centers’ assets consistent with Ameren Missouri’s 2020 IRP.
Due to the NSR and Clean Air Act Litigation discussed in Note 14 – Commitments and Contingencies under Part II, Item 8, of this report,
Ameren Missouri plans to retire the Rush Island Energy Center prior to the 2039 date discussed above. Ameren Missouri expects to file an
update to the 2020 IRP with the MoPSC in the first half of 2022 to reflect an accelerated retirement date for the Rush Island Energy Center
and the impact of new emission standards pursuant to the IETL, as discussed in Note 14 – Commitments and Contingencies, among other
things. 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 need for investment in new sources of
energy is dependent on several key factors, including continuation of and customer participation in energy-efficiency programs, the amount of
distributed generation from customers, load growth, technological advancements, costs of generation alternatives, environmental regulation
of coal-fired power plants, and state renewable energy requirements, which could lead to the retirement of current baseload assets before the
end of their current useful lives or alterations in the way those assets operate, which could result in increased capital expenditures and/or
increased operations and maintenance expenses. Because of the significant time required to plan, acquire permits for, and build a baseload
energy center, Ameren Missouri continues to study alternatives and to take steps to preserve options to meet future demand. Steps include
evaluating the potential for further diversification of Ameren Missouri’s generation portfolio through renewable energy generation, including
wind and solar generation, extending the operating license for the Callaway Energy Center, additional customer energy-efficiency and
demand response programs, distributed energy resources, and energy storage.
Missouri law requires Ameren Missouri to offer solar rebates and net metering to certain customers that install renewable generation at
their premises. The cost of the rebates are deferred as a regulatory asset 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 usage within each billing month.
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. In 2021, 2020, and 2019, Ameren Illinois procured power on behalf of its customers for 23%,
23%, and 22%, respectively, of its total kilowatthour sales. Power purchased by Ameren Illinois for its electric distribution customers who do
not elect to purchase their power from an alternative retail electric supplier comes either through procurement processes conducted by the
IPA or through markets operated by the MISO. The IPA administers an RFP process through which Ameren Illinois procures its expected
supply. The 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 power, power procurement, and transmission costs are reflected in Ameren
Illinois Electric Distribution’s results of operations, but do not affect Ameren Illinois Electric Distribution’s earnings because these costs are
offset by corresponding revenues. Ameren Illinois charges distribution service rates to electric distribution customers who purchase
electricity, regardless of supplier, which does affect Ameren Illinois Electric Distribution’s earnings.
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. Customers that elect to receive a rebate and are enrolled in net metering are allowed to net their supply service charges, but not their
distribution service charges. By law, Ameren Illinois’ electric distribution revenues are decoupled from sales volumes, which ensures that the
electric distribution revenues authorized in a regulatory rate review are not affected by changes in sales volumes.
POWER GENERATION
Ameren Missouri owns energy centers that rely on a diverse fuel portfolio, including coal, nuclear, and natural gas, as well as renewable
sources of generation, which include hydroelectric, wind, methane gas, and solar. All of Ameren Missouri’s coal-fired energy centers were
constructed prior to 1978. The Callaway nuclear energy center began operation in 1984 and is licensed to operate until 2044. As of
December 31, 2021, Ameren Missouri’s coal-fired energy centers represented 10% and 20% of Ameren’s and Ameren Missouri’s rate base,
respectively. See Item 2 – Properties under Part I of this report for information regarding Ameren Missouri’s energy centers.
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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. 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. As of December 31, 2021, Ameren Missouri had price-hedged 99% of its expected coal supply and 100% of its coal
transportation requirements for generation in 2022. Ameren Missouri has additional coal supply under contract through 2025. The Powder
River Basin coal transport agreements that Ameren Missouri has with Union Pacific Railroad and Burlington Northern Santa Fe Railway are
currently set to expire at the end of 2024. Ameren Missouri burned approximately 16.5 million tons of coal in 2021.
About 98% of Ameren Missouri’s coal is purchased from the Powder River Basin in Wyoming, which has a limited number of suppliers.
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 potential work stoppages, delays in coal deliveries, equipment breakdowns, and other factors. 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. Coal suppliers in the Powder River Basin are experiencing financial
hardship because of a decrease in demand resulting from increased natural gas and renewable energy generation, and the impact of
environmental regulations and concerns related to coal-fired generation. These financial hardships have resulted in bankruptcy filings by
certain coal suppliers in recent years. As of December 31, 2021, coal inventories at the Sioux and Rush Island energy centers were near
targeted levels, and coal inventories at the Labadie Energy Center were below targeted levels due to transportation disruptions in 2021.
Ameren Missouri is actively managing inventories at the Meramec Energy Center in preparation for its expected 2022 retirement. Disruptions
in coal deliveries could cause Ameren Missouri to pursue a strategy that could include reducing off-system sales of power during low-margin
periods, buying higher-cost fuels to generate required electricity, and purchasing power from other sources.
Nuclear
The production of nuclear fuel involves the mining and milling of uranium ore to produce uranium concentrates, the conversion of
uranium concentrates to uranium hexafluoride gas, the enrichment of that gas, the conversion of the enriched uranium hexafluoride gas into
uranium dioxide fuel pellets, and the fabrication into fuel assemblies. 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 has historically required refueling at 18-month intervals. During its return to full power after the completion
of the last refueling and maintenance outage in late December 2020, the Callaway Energy Center experienced a non-nuclear operating issue
related to its generator. After replacement of certain key components of the generator, the energy center returned to service in early August
2021. The next refueling is scheduled for the spring of 2022. Ameren Missouri has inventories and supply contracts sufficient to meet all of its
uranium (concentrate and hexafluoride), conversion, and enrichment requirements at least through the 2026 refueling. Fuel fabrication
service contracts extend through 2023, and procurement efforts are ongoing to extend this coverage.
RENEWABLE ENERGY AND ZERO EMISSION STANDARDS
Missouri and Illinois laws require electric utilities to include renewable energy resources in their portfolios. Ameren Missouri and Ameren
Illinois satisfied their renewable energy portfolio requirements in 2021.
Ameren Missouri
In Missouri, utilities were required to purchase or generate electricity equal to at least 15% of native load sales from renewable energy
sources in 2021. The requirement, which is applicable to 2022 and each year thereafter, is subject to an average 1% annual increase on
customer rates over any 10-year period. At least 2% of the annual renewable energy requirement must be derived from solar energy. Ameren
Missouri expects to satisfy the nonsolar requirement in 2022 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. The Keokuk Energy
Center generates electricity using a hydroelectric dam located on the Mississippi River. The Maryland Heights Energy Center generates
electricity by burning methane gas collected from a landfill. Ameren Missouri is meeting the solar energy requirement by purchasing solar-
generated renewable energy credits from customer-installed systems and by generating energy at its solar facilities.
Ameren Illinois
In accordance with Illinois law, Ameren Illinois is required to collect funds from all electric distribution customers to fund IPA procurement
events for renewable energy credits. The IPA establishes its long-term renewable resources procurement plans in a filing made every two
years. Based on IPA procurement events, Ameren Illinois has contractual commitments of approximately 0.9 million wind renewable energy
credits per year and approximately 1.1 million solar renewable energy credits per year. Ameren Illinois has also entered into 20-year
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contracts, ending in 2032, to purchase approximately 0.6 million wind renewable energy credits per year. The IETL, which was enacted in
September 2021, increased the amount Ameren Illinois collects from customers to fund IPA renewable energy credit procurement events
from $1.81 per MWh to $4.58 per MWh, beginning in February 2022. Also, 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. Based on amounts collected from customers and renewable energy credit purchases under
contract, Ameren Illinois does not expect the first reconciliation proceeding to result in refunds to customers. The IPA is expected to file its
first long-term renewable resources procurement plan under the IETL in March 2022, which, once approved by the ICC, will establish the
2022 and 2023 renewable energy credit procurement targets.
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. As a result of
a 2018 IPA procurement event, which was approved by the ICC, Ameren Illinois entered into agreements to acquire zero emission credits
through 2026. Annual zero emission credit commitment amounts will be published by the IPA each May prior to the start of the subsequent
planning year. 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.
CUSTOMER ENERGY-EFFICIENCY PROGRAMS
Ameren Missouri and Ameren Illinois have implemented energy-efficiency programs to educate their customers and to help them
become more efficient energy consumers. These programs provide incentives to customers for installing newer, more efficient technology,
and for using energy in a more conservation-minded manner. 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, 2021, smart meters have been installed for approximately 37% of Ameren Missouri’s electric
customers and nearly all of Ameren Illinois’ electric customers.
Ameren Missouri
In Missouri, the Missouri Energy Efficiency Investment Act established a rider that, among other things, allows electric utilities to recover
costs with respect to MoPSC-approved customer energy-efficiency programs. The law requires the MoPSC to ensure that a utility’s financial
incentives are aligned to help customers use energy more efficiently, to provide timely cost recovery, and to provide earnings opportunities
associated with cost-effective energy-efficiency programs. Missouri does not have a law mandating energy-efficiency programs.
In 2018, the MoPSC issued an order approving Ameren Missouri’s MEEIA 2019 plan. The plan includes a portfolio of customer energy-
efficiency programs through December 2023 and low-income customer energy-efficiency programs through December 2024, along with a
rider. Ameren Missouri intends to invest approximately $360 million over the life of the plan, including $70 million in 2022 and $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. If the target goals are achieved for 2021 and 2022, additional revenues of $24 million
would be recognized in 2022, and, if target goals are achieved for 2023, additional revenues of $13 million would be recognized in 2023.
Through 2021, Ameren Missouri has invested $202 million in MEEIA 2019 customer energy-efficiency programs. Additionally, as part of its
Smart Energy Plan, Ameren Missouri has invested $195 million in smart meters since 2019.
The MEEIA 2019 plan includes the continued use of the MEEIA rider. The MEEIA rider allows Ameren Missouri to collect from, or refund
to, customers any difference between actual program costs, lost electric margins, and any performance incentive and the amounts collected
from customers, without a traditional regulatory rate review, subject to MoPSC prudence reviews, until lower volumes resulting from the
MEEIA programs are reflected in base rates. Customer rates, based upon both forecasted program costs and lost electric margins and
collected via the MEEIA rider, are reconciled annually to actual results.
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. Every four years, Ameren Illinois is required to file a
four-year electric energy-efficiency plan with the ICC. In July 2021, the ICC issued an order approving Ameren Illinois’ electric and natural
gas energy-efficiency plans for 2022 through 2025, as well as regulatory recovery mechanisms. The order authorized electric and natural gas
energy-efficiency program expenditures of $425 million and $66 million, respectively, over the four-year period. Subsequent to this order, the
IETL was enacted, which increased the allowed annual investments in electric energy-efficiency programs from approximately $100 million to
approximately $120 million for the 2022 to 2025 period, among other things. Ameren Illinois expects to file a revised energy-efficiency plan
with the ICC by early March 2022 to reflect the increased level of annual investments allowed under the IETL. Pursuant to the IETL, the
annual maximum amount of investment for 2026 to 2029 is approximately $120 million and may increase by up to approximately $30 million
depending on the election of certain customers to participate in the programs.
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Illinois law allows Ameren Illinois to earn a return on its electric energy-efficiency program investments. Ameren Illinois’ electric energy-
efficiency investments are deferred as a regulatory asset and earn a return at the applicable WACC, with the ROE based on the annual
average of the monthly yields of the 30-year United States Treasury bonds plus 580 basis points. The allowed ROE on electric energy-
efficiency investments can be increased or decreased by up to 200 basis points, depending on the achievement of annual energy savings
goals. While the ICC approves Ameren Illinois’ four-year electric energy-efficiency plans, the ICC has the ability to reduce the amount of
approved electric energy-efficiency savings goals in future plan program years if there are insufficient cost-effective programs available,
which could reduce the investments in electric energy-efficiency programs. 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. Ameren Illinois’ natural gas energy-efficiency program costs are recovered through a rider.
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. These resources include firm natural gas supply
agreements with producers, firm interstate and intrastate transportation capacity, firm no-notice storage capacity leased from interstate
pipelines, and on-system storage facilities to maintain natural gas deliveries to customers throughout the year and especially during peak
demand periods. 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. In addition to transactions requiring
physical delivery, certain financial instruments, including those entered into in the New York Mercantile Exchange futures market and in the
over-the-counter financial markets, are used to hedge the price paid for natural gas. Natural gas supply costs are passed on to customers of
Ameren Missouri and Ameren Illinois under PGA clauses, subject to prudence reviews by the MoPSC and the ICC. As of December 31,
2021, Ameren Missouri and Ameren Illinois had price-hedged 96% and 93%, respectively, of their expected remaining natural gas supply
requirements for the peak winter season through March 2022.
For additional information on our fuel, purchased power, and natural gas for distribution supply, see Results of Operations and Liquidity
and Capital Resources in Management’s Discussion and Analysis of Financial Condition and Results of Operations under Part II, Item 7, and
Commodity Price Risk under Part II, Item 7A, of this report. Also see Note 1 – Summary of Significant Accounting Policies, Note 7 –
Derivative Financial Instruments, Note 13 – Related-party Transactions, Note 14 – Commitments and Contingencies, and Note 15 –
Supplemental Information under Part II, Item 8 of this report.
HUMAN CAPITAL MANAGEMENT
The execution of Ameren’s core strategy to invest and operate in a manner consistent with existing regulatory frameworks, advocate for
responsible policies, and capitalize on investment opportunities to deliver superior customer and shareholder value is driven by the
capabilities and engagement of our workforce. Ameren’s workforce strategy is designed to promote a skilled and diverse workforce that is
prepared to deliver on Ameren’s mission (To Power the Quality of Life) and vision (Leading the Way to a Sustainable Energy Future), both
today and in the future. Our workforce strategy is anchored in four key pillars: Culture, Leadership, Talent, and Rewards, which are discussed
further below. 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. In addition to reviewing and determining the Ameren Companies’
compensation practices and policies for the chief executive officer and other executive officers, the Human Resources Committee of
Ameren’s board of directors is responsible for oversight of Ameren’s human capital management practices and policies, including those
related to diversity, equity, and inclusion. The Human Resources Committee and Ameren’s board of directors are updated regularly on
human capital matters.
Culture
We strive to cultivate a values-based “All-In” culture that enables the sustainable execution of our core strategy and reflects the following
characteristics:
• We Care about our customers, our communities, and each other
• We Serve with Passion
• We Deliver for our customers and stakeholders, today and
tomorrow
• We Win Together as a result of our teamwork and collaboration
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We design our human capital management practices and policies to reinforce our core values, foster our culture, and drive employee
engagement. 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. 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 All-In culture, every employee is expected to challenge any unsafe act, complete each workday safely, and provide
feedback on safety and security matters. 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. For additional information about the actions taken that
were designed to protect the safety of our employees and customers during the COVID-19 pandemic, see The COVID-19 Pandemic section
below.
We seek to foster diversity, equity, and inclusion across our organization. We contribute to community-based organizations, hold
diversity, equity, and inclusion leadership summits for employees and community leaders, and offer various training programs. We also offer
a program to provide paid-time off for employees who engage in volunteer or learning opportunities with organizations that support diversity,
equity, and inclusion. 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.
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 by 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. 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.
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. 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. 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. These
programs include skilled craft education and training for individuals interested in skilled craft roles, an intern/co-op program that serves as a
pipeline for STEM-related careers, a career reentry program for experienced professionals transitioning from voluntary career breaks, a
program for individuals transitioning from military service, and an early career rotation program. 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. Our workforce has
been stable, with a total attrition rate of 8% in 2021. The majority of employee attrition is attributable to employee retirements, generally
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allowing for thoughtful workforce and succession planning in advance of these planned transitions. The following table presents our employee
count and their average tenure as of December 31, 2021, and the attrition rate in 2021:
Ameren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employee
Count
9,116
3,998
3,239
1,879
Average Tenure
(in years)
14
15
14
11
Attrition
Rate
8%
7%
9%
9%
Ameren’s workforce is diverse in many ways. At the officer level, which represents 54 individuals, 22% are female, and 20% are racially
and/or ethnically diverse. 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, 2021:
Ameren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48%
58%
55%
12%
The following table presents Ameren’s employees by generation at December 31, 2021:
Collective
Bargaining Unit
Female
24%
17%
24%
40%
Racially and/or
Ethnically Diverse
16%
15%
13%
23%
Generation Description
Ameren
Ameren Missouri
Ameren Illinois
Ameren Services
Baby Boomer (birth years between 1946 and 1964) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Generation X (birth years between 1965 and 1980) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Millennials (birth years between 1981 and 1996) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Generation Z/Post Millennial (birth years after 1997) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20%
41%
36%
3%
21%
41%
35%
3%
19%
40%
39%
2%
20%
42%
35%
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 Ameren Companies expect continued constructive relationships with their
respective labor unions. All of the Ameren Missouri collective bargaining unit contracts expire in 2022. The Ameren Illinois collective
bargaining unit contracts expire in 2022 and 2023, which cover 92% and 8% of represented employees, respectively. Ameren Missouri and
Ameren Illinois expect to renew these contracts prior to their expiration.
Rewards
The primary objective of our rewards program is to provide a total rewards package that attracts and retains a talented workforce and
reinforces strong performance in a financially sustainable manner. Management continuously evaluates our core benefits in an effort to
create a market-competitive, performance-based, shareholder-aligned total rewards package with a view towards balancing employee value
and financial sustainability. We recognize that the rewards package required to attract and retain talent over the long term is about more than
pay and benefits; it is about the total employee experience and supporting their overall well-being. In addition to base salary, medical
benefits, and retirement benefits, including 401(k) savings and pension, our total rewards package includes short-term incentives and long-
term stock-based compensation for certain employees. Further, we offer our employees various programs that encourage overall well-being,
including wellness and employee assistance programs. We strive to provide a competitive and sustainable rewards package that supports
our ability to attract, engage, and retain a talented and diverse workforce, while at the same time reinforcing and rewarding strong
performance.
THE COVID-19 PANDEMIC
The COVID-19 pandemic continues to affect our results of operations, financial position, and liquidity. While our electric sales volumes,
excluding the estimated effects of weather and customer energy-efficiency programs, increased in 2021, compared to 2020, and total sales
volume levels were more comparable to pre-pandemic levels, there has been a shift in sales volumes by customer class, with an increase in
residential sales, and a decrease in commercial and industrial sales. The continued effect of the COVID-19 pandemic on our results of
operations, financial position, and liquidity in subsequent periods will depend on its severity and longevity, future regulatory or legislative
actions with respect thereto, and the resulting impact on business, economic, and capital market conditions. Although restrictions on social
activities and nonessential businesses implemented in our service territories in 2020 have been relaxed, additional restrictions may be
imposed in the future.
15
During the COVID-19 pandemic, Ameren has taken significant actions designed to protect the safety of our employees and customers,
including restricting travel for employees, implementing work-from-home policies, offering voluntary leave of absence arrangements and
flexible reduced work schedules, enhancing paid time off programs for impacted employees, securing and supplying personal protective
equipment, and implementing work practices to protect the safety of our employees and customers. In addition to our existing employee
assistance program, we continue to provide additional resources on physical, emotional, and financial well-being throughout the pandemic.
We are capitalizing on the opportunities presented by the COVID-19 pandemic, including advancing the digital enablement of our workforce
and enhancing our facilities and workforce policies and practices to increase collaboration and productivity.
For further discussion of the impact to our businesses related to the pandemic and regulatory mechanisms that reduce these impacts,
see Overview, Results of Operations, and Outlook in Management’s Discussion and Analysis of Financial Condition and Results of
Operations under Part II, Item 7, and Note 1 – Summary of Significant Accounting Policies and Note 2 – Rate and Regulatory Matters under
Part II, Item 8, of this report.
INDUSTRY ISSUES
We are facing issues common to the electric and natural gas utility industry. These issues include:
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the potential for changes in laws, regulations, enforcement efforts, and policies at the state and federal levels;
corporate tax law changes, 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;
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 customer rates;
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 the COVID-19 pandemic and other 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 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, including those resulting from the COVID-19
pandemic;
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;
the potential for reduced efficiency and productivity due to the transition to 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;
16
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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 CO2 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 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.
We are monitoring all these issues. Except as otherwise noted in this report, we are unable to predict what impact, if any, these issues
will have on our results of operations, financial position, or liquidity. 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
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,
2021
2020
2019
Electric Sales – kilowatthours (in millions):
Ameren Missouri:
Residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Street lighting and public authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Missouri retail load subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Off-system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Missouri total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois Electric Distribution(a):
Residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Street lighting and public authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois Electric Distribution total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Eliminate affiliate sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electric Operating Revenues (in millions):
Ameren Missouri:
Residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other, including street lighting and public authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13,366
13,556
4,151
81
31,154
7,425
38,579
11,620
11,795
11,076
430
34,921
(412)
73,088
1,445
1,126
280
170
Ameren Missouri retail load subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
3,021
Off-system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
191
Ameren Missouri total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
3,212
Ameren Illinois Electric Distribution:
Residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other, including street lighting and public authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
933
545
135
26
Ameren Illinois Electric Distribution total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
1,639
Ameren Transmission:
Ameren Illinois Transmission(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
ATXI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Eliminate affiliate revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Transmission total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Other and intersegment eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
365
199
(2)
562
(116)
Ameren total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
5,297
13,267
13,117
4,158
88
30,630
7,578
38,208
11,491
11,414
10,674
442
34,021
(322)
71,907
1,373
1,025
261
155
2,814
170
2,984
867
486
124
21
1,498
329
194
—
523
(94)
4,911
$
$
$
$
$
$
$
$
13,532
14,269
4,242
99
32,142
5,477
37,619
11,675
12,341
11,587
491
36,094
(84)
73,629
1,403
1,157
278
127
2,965
144
3,109
848
497
127
32
1,504
288
176
—
464
(96)
4,981
$
$
$
$
$
$
$
$
(a)
(b)
Sales for which power was supplied by Ameren Illinois as well as alternative retail electric suppliers. In 2021, 2020, and 2019, Ameren Illinois procured power on behalf of
its customers for 23%, 23%, and 22%, respectively, of its total kilowatthour sales.
Includes $66 million, $52 million, and $62 million in 2021, 2020, and 2019, respectively, of electric operating revenues from transmission services provided to Ameren
Illinois Electric Distribution.
18
Electric Operating Statistics – Year Ended December 31,
Ameren Missouri fuel costs (cents per kilowatthour generated)(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Source of Ameren Missouri energy supply:
2021
1.46 ¢
Coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nuclear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
73.0 %
10.5
Hydroelectric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Methane gas and solar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchased power – wind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchased power – other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Missouri total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.2
3.7
1.0
0.2
0.6
6.8
2020
1.38 ¢
67.3 %
19.4
4.5
—
0.5
0.5
0.6
7.2
2019
1.38 ¢
63.4 %
23.3
5.0
—
0.5
0.2
0.7
6.9
100.0 %
100.0 %
100.0 %
(a) Ameren Missouri fuel costs exclude $1 million, $(49) million and $5 million in 2021, 2020, and 2019, respectively, for changes in FAC recoveries.
Natural Gas Operating Statistics – Year Ended December 31,
2021
2020
2019
Natural Gas Sales – dekatherms (in millions):
Ameren Missouri:
Residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Missouri total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois Natural Gas:
Residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois Natural Gas total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural Gas Operating Revenues (in millions):
Ameren Missouri:
Residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transport and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
4
1
9
21
54
16
4
100
174
195
79
34
4
24
Ameren Missouri total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
141
Ameren Illinois Natural Gas:
Residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transport and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois Natural Gas total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Other and intercompany eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
657
172
35
93
957
(1)
Ameren total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
1,097
Rate Base Statistics – At December 31,
2021
Rate Base (in billions):
Electric transmission and distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Natural gas transmission and distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13.5
2.7
Coal generation:
Labadie Energy Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sioux Energy Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rush Island Energy Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Meramec Energy Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Coal generation total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nuclear generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Renewable generation (hydroelectric, wind, solar, methane gas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.9
0.7
0.4
0.1
2.1
1.5
1.5
0.3
7
3
1
9
20
55
15
7
96
173
193
76
29
4
16
125
541
136
14
69
760
(2)
883
2020
12.1
2.4
0.9
0.7
0.4
0.1
2.1
1.5
1.0
0.3
$
$
$
$
$
$
7
4
1
9
21
61
19
4
101
185
206
81
34
4
15
134
570
154
13
60
797
(2)
929
2019
10.7
2.1
0.9
0.6
0.5
0.1
2.1
1.4
0.5
0.4
$
$
$
$
$
$
Rate base total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
21.6
$
19.4
$
17.2
19
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. These documents are also available through the SEC’s website (www.sec.gov). Ameren’s website is a channel of
distribution for material information about the Ameren Companies. Financial and other material information is routinely posted to, and
accessible at, Ameren’s website.
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, Nominating and Corporate Governance Committee, Finance 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 information on Ameren’s website, or any other website referenced in this report, is not
incorporated by reference into this report.
ITEM 1A. RISK FACTORS
Investors should review carefully the following material risk factors and the other information contained in this report. The risks that the
Ameren Companies face are not limited to those in this section. There may be further risks and uncertainties that are not presently known or
that are not currently believed to be material that may adversely affect the results of operations, financial position, and liquidity of the Ameren
Companies.
REGULATORY AND LEGISLATIVE RISKS
We are subject to extensive regulation of our businesses.
We are subject to federal, state, and local regulation. The extensive regulatory frameworks, some of which are more specifically
identified in the following risk factors, regulate, among other matters, the electric and natural gas utility industries; the rate and cost structure
of utilities, including an allowed ROE; the operation of nuclear power plants; the construction and operation of generation, transmission, and
distribution facilities; the acquisition, disposal, depreciation and amortization of assets and facilities; the electric transmission system
reliability; and wholesale and retail competition. In the planning and management of our operations, we must address the effects of existing
and proposed laws and regulations and potential changes in our regulatory frameworks, including initiatives by federal and state legislatures,
RTOs, utility regulators, and taxing authorities. Significant changes in the nature of the regulation of our businesses, including expiration or
discontinuation of, or significant changes to, existing regulatory mechanisms, could require changes to our business planning and
management of our businesses and could adversely affect our results of operations, financial position, and liquidity. Failure to obtain
adequate rates or regulatory approvals in a timely manner; failure to obtain necessary licenses or permits from regulatory authorities; the
impact of new or modified laws, regulations, standards, interpretations, or other legal requirements; or increased compliance costs could
adversely affect our results of operations, financial position, and liquidity.
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 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. 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. We are exposed to regulatory lag 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. 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.
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 and revenues. Ameren Illinois’ natural gas rates established in those proceedings are based on
20
estimated future costs and revenues. Thus, the rates that we are allowed to charge for utility services may not match our actual costs at any
given time.
Rates include an allowed return on investments established by the regulator, including a return at the applicable WACC on rate base,
and an amount for income taxes based on the currently applicable statutory income tax rates and amortization associated with excess
deferred income taxes. Although rate regulation is premised on providing an opportunity to earn a reasonable rate of return on rate base,
there can be no assurance that the regulator will determine that our costs were prudently incurred or that the regulatory process will result in
rates that will produce full recovery of such costs or provide for an opportunity to earn a reasonable return on those investments. Ameren
Missouri and Ameren Illinois, and the utility industry generally, have an increased need for cost recovery, primarily driven by capital
investments, which is likely to continue in the future. The resulting increase to the revenue requirement needed to recover such costs and
earn a return on investments could result in more frequent regulatory rate reviews and requests for cost recovery mechanisms. 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 expects to use the IEIMA performance-based formula ratemaking framework to establish annual customer
rates effective through 2023. Effective for rates beginning in 2024, Ameren Illinois will establish electric distribution rates through
either a traditional regulatory rate review or an MYRP. As a result of its participation in the IEIMA performance-based formula
ratemaking, Ameren Illinois’ ROE for its electric distribution service through 2023 and its electric energy-efficiency investments is
directly correlated to yields on United States Treasury bonds. Additionally, Ameren Illinois is subject to certain performance
standards. With respect to its natural gas delivery service business, unless extended, Ameren Illinois’ QIP will expire after
December 2023.
Ameren Illinois expects to continue to use the current IEIMA performance-based formula ratemaking framework to establish annual
customer rates effective through 2023 and reconcile the related revenue requirements through an IEIMA reconciliation. 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, among other things. Subject to a constructive outcome
regarding the ICC’s determination of performance metrics, Ameren Illinois anticipates filing an MYRP for rates effective beginning in 2024. An
MYRP would establish rates for a four-year period, and Ameren Illinois has the option to file for an MYRP every four years. For rates effective
beginning in 2024, Ameren Illinois will be required to establish future rates through a traditional regulatory rate review or an MYRP with the
ICC, which might result in rates that do not produce a full or timely recovery of costs or provide for an adequate return on investments and
would expose Ameren Illinois’ electric distribution business to the risks described in the immediately preceding risk factor. By law, Ameren
Illinois’ electric distribution revenues are decoupled from sales volumes regardless of the process used to establish electric distribution rates,
which ensures that the electric distribution revenues authorized in a regulatory rate review are not affected by changes in sales volumes.
Ameren Illinois also has an electric energy-efficiency program rider, which includes a return at the applicable WACC on its program
investments, that is subject to performance-based formula ratemaking. The ICC annually reviews Ameren Illinois’ rate filings for
reasonableness and prudency. If the ICC were to conclude that Ameren Illinois’ costs were not prudently incurred, the ICC would disallow
recovery of such costs.
The allowed ROE under the IEIMA and electric energy-efficiency 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. 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. 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
$11 million change in Ameren’s and Ameren Illinois’ annual net income, based on Ameren Illinois’ 2022 projected year-end rate base,
including electric energy-efficiency investments.
Ameren Illinois’ electric distribution business is also subject to performance standards. Failure to achieve the standards would result in a
reduction in the company’s allowed ROE calculated under the formula ratemaking recovery mechanisms. The performance standards
applicable to electric distribution service under the IEIMA include improvements in service reliability to reduce both the frequency and
duration of outages, a reduction in the number of estimated bills, a reduction of consumption from inactive meters, and a reduction in bad
debt expense. The allowed ROE for electric distribution service may be decreased for penalties up to 38 basis points in 2022 and up to 10
basis points in 2023 if these performance standards are not met. 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. In 2021, 2020, and
2019, there were no performance-related basis point adjustments that materially affected financial results. With respect to the MYRP, the
ICC-determined ROE would be subject to annual adjustments during the four-year period based on certain performance metrics, with
aggregate symmetrical performance-based ROE incentives and penalties ranging from 20 to 60 basis points annually.
21
While the ICC has approved a plan for Ameren Illinois to invest approximately $100 million per year in electric energy-efficiency
programs through 2025, the ICC has the ability to reduce the amount of electric energy-efficiency savings goals in the future plan program
years if there are insufficient cost-effective programs available, which could reduce the investments in electric energy-efficiency programs.
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. Ameren Illinois’ QIP
is subject to a rate impact limitation of a cumulative 4% per year since the most recent delivery service rate order, with no single year
exceeding 5.5%. If the rate impact limitation was met in a particular year, the amount of rate base causing the QIP rate to exceed the
limitation would be exposed to regulatory lag until a year when that amount could be recovered under QIP or is added to rate base as a part
of a regulatory rate review. Upon issuance of a natural gas delivery service rate order, QIP rate base is transferred to base rates and the QIP
is reset to zero. Without legislative action, the QIP will expire after December 2023. 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 election to use the PISA, Ameren Missouri’s electric rates are subject to a rate cap. Additionally, Ameren
Missouri’s investment plan assumes use of PISA through December 2028, which is subject to MoPSC approval that has not yet
been requested.
As a result of Ameren Missouri’s election to use the PISA, its rate increases are limited to a 2.85% compound annual growth rate in the
average overall customer rate per kilowatthour, based on the electric rates that became effective in April 2017, less half of the annual savings
from the TCJA that was passed on to customers as approved in a July 2018 MoPSC order. Both the rate cap and the PISA election are
effective through December 2023, unless Ameren Missouri requests and receives MoPSC approval of an extension through December 2028.
Increased capital investments and operating costs could cause customer rates to exceed the rate cap. In addition, a decrease in off-
system sales, which are included in net energy costs within the FAC, could also contribute to customer rates exceeding the rate cap. Off-
system sales are affected by generation availability, which is affected by planned and unplanned outages at Ameren Missouri’s energy
centers, curtailment of generation resulting from unfavorable economic conditions, the addition of new generation sources, and retirements of
Ameren Missouri’s energy centers, among other things. If rate changes from the FAC or the RESRAM riders would cause rates to temporarily
exceed the 2.85% rate cap, the overage would be deferred for future recovery in the next regulatory rate review; however, rates established
in such regulatory rate review would be subject to the rate cap. Any deferred overages approved for recovery would be recovered over a
period of 20 years following approval of amounts in a regulatory rate review. Excluding customer rates under the MEEIA rider, which are not
subject to the rate cap, Ameren Missouri would incur a penalty equal to the amount of deferred overage that would cause customer rates to
exceed the 2.85% rate cap. A penalty incurred as the result of exceeding the rate cap could adversely affect Ameren’s and Ameren
Missouri’s results of operations, financial position, and liquidity.
Ameren Missouri’s planned capital expenditures of up to $9.2 billion from 2022 through 2026 are based on the assumption of continued
constructive regulatory frameworks, including an assumption that Ameren Missouri requests and receives MoPSC approval of an extension
of the PISA through December 2028. If Ameren Missouri does not obtain approval to use the PISA through December 2028, it could
adversely affect Ameren’s and Ameren Missouri’s investment plans and results of operations, financial position, and liquidity.
We are subject to various environmental laws. Significant capital expenditures may be required to achieve and to maintain
compliance with these environmental laws. 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.
Our electric generation, transmission, and distribution and natural gas distribution and storage operations must comply with a variety of
statutes and regulations relating to the protection of the environment and human health and safety including permitting programs
implemented via federal, state, and local authorities. 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. 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.
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 and third-party sites, such as landfills. 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.
22
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, 2021, Ameren Missouri’s coal-fired energy centers
represented 10% and 20% of Ameren’s and Ameren Missouri’s rate base, respectively. Clean Air Act regulations that apply to the electric
utility industry include the NSPS, the CSAPR, the MATS, and the National Ambient Air Quality Standards, which are subject to periodic
review for certain pollutants. Collectively, these regulations cover a variety of pollutants, such as SO2, particulate matter, NOx, mercury, toxic
metals, and acid gases, and CO2 emissions from new power plants. Regulations implementing the Clean Water Act govern both intake and
discharges of water and may require 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. Depending upon the scope of modifications ultimately
required by state regulators, these capital expenditures 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. The individual or combined effects of existing and new environmental regulations could result in significant capital
expenditures, increased operating costs, or the closure or alteration of operations at some of Ameren Missouri’s energy centers.
In January 2011, the United States Department of Justice, on behalf of the EPA, filed a complaint against Ameren Missouri in the United
States District Court for the Eastern District of Missouri alleging that in performing projects at its coal-fired Rush Island Energy Center in 2007
and 2010, Ameren Missouri violated provisions of the Clean Air Act and Missouri law. In January 2017, the district court issued a liability
ruling against Ameren Missouri and, in September 2019, entered a remedy order. That remedy order included a requirement to install a flue
gas desulfurization system at the Rush Island Energy Center, which was upheld through an appeals process by the United States Court of
Appeals for the Eighth Circuit in the fourth quarter of 2021. Based on its assessment of available legal, operational and regulatory
alternatives, Ameren Missouri has determined not to further appeal the court rulings and, in December 2021, filed a motion 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. The district court is under no deadline to issue a ruling revising the remedy order. In
January 2022, the MISO completed a preliminary assessment regarding potential impacts of the retirement to the regional electric power
system, which indicated transmission upgrades and voltage support would be needed in advance of the retirement to address reliability
concerns. In February 2022, Ameren Missouri expects to formally notify the MISO of its intent to retire the Rush Island Energy Center. Upon
receipt of the formal notification, the MISO will conduct a final reliability assessment. The MISO must also separately approve the specific
upgrades and transmission support required to address reliability concerns noted in the assessment. Related to this matter, in February
2022, the MoPSC issued an order directing the MoPSC staff to review Ameren Missouri’s planned accelerated retirement of the Rush Island
Energy Center, including potential impacts on the reliability and cost of Ameren Missouri’s service to its customers, Ameren Missouri’s plans
to mitigate the customer impacts of the accelerated retirement, and the prudence of Ameren Missouri’s actions and decisions with regard to
the Rush Island Energy Center, among other things. The MoPSC staff is under no deadline to complete this review. As of December 31,
2021, the Rush Island Energy Center had a net plant balance of approximately $0.6 billion and a rate base of approximately $0.4 billion. In
addition, Ameren Missouri expects to file an update to the 2020 IRP with the MoPSC in the first half of 2022 to reflect the planned
acceleration of the retirement of the Rush Island Energy Center from 2039, the retirement year for the facility as reflected in the 2020 IRP and
reflected in depreciation rates approved by the December 2021 MoPSC electric rate order. 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.
The EPA’s Affordable Clean Energy Rule repealed the Clean Power Plan and replaced it with a new rule that established emission
guidelines for states to follow in developing plans to limit CO2 emissions and identified certain efficiency measures as the best system of
emission reduction for coal-fired electric generating units. In January 2021, the United States Court of Appeals for the District of Columbia
Circuit vacated the Affordable Clean Energy Rule, and ruled that the EPA had the discretion to consider emission reduction measures that
include efficiency measures and generation shifting to lower carbon emissions. The United States Supreme Court agreed to review the court
of appeals’ ruling and oral arguments will occur in February 2022 with a decision expected by mid-2022. A decision by the United States
Supreme Court could impact the EPA’s development of new regulations to address carbon emissions from coal- and natural gas-fired electric
generating units. At this time, Ameren Missouri cannot predict the outcome of the legal challenge or future rulemakings. As such, any impact
on the results of operations, financial position, and liquidity of Ameren and Ameren Missouri is uncertain.
The EPA’s CCR Rule establishes requirements for the management and disposal of CCR from coal-fired power plants and will result in
the closure of surface impoundments at Ameren Missouri’s energy centers. In January 2022, Ameren Missouri received notice of a proposed
determination by the EPA that it has rejected Ameren Missouri’s requests to extend the timeline for operating certain impoundments located
at the Sioux and Meramec energy centers. Compliance with the CCR Rule’s requirements for closure of the impoundments would be required
135 days after the EPA issues a final determination, which Ameren Missouri expects to be issued in the spring of 2022. If Ameren Missouri
was no longer able to use the surface impoundments at the Sioux or Meramec energy centers, Ameren Missouri would not be able to operate
the energy centers unless an alternative for handling the CCR material is in place. Ameren Missouri plans to retire the Meramec Energy
Center in 2022, and is accelerating its construction plans to build a CCR Rule-compliant impoundment at the Sioux Energy Center to allow for
continued operations. Additionally, Ameren Missouri is seeking a reliability determination from the MISO, which, if granted, would extend the
deadline to comply with the requirement to close the impoundments and allow the energy centers to operate.
23
The IETL established emission standards that became effective in September 2021. Ameren Missouri's natural gas-fired energy centers
in Illinois will be subject to limits on emissions, including CO2 and NOx, equal to their unit-specific average emissions from 2018 through
2020, for any rolling twelve-month period beginning October 1, 2021, through 2029. Further reductions to emissions limits will become
effective between 2030 and 2040, which could limit the operations of Ameren Missouri's five natural gas-fired energy centers located in the
state of Illinois, and will result in the closure of one or more energy centers earlier than anticipated. 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 as necessary. Ameren Missouri is reviewing the emission standards and the effect they may have
on its generation strategy, including any increases in capital expenditures or operating costs, and changes to the useful lives of the five
natural gas-fired energy centers. Ameren Missouri expects to file an update to the 2020 IRP with the MoPSC in the first half of 2022 to reflect,
among other things, the impact of these new emissions standards.
Ameren and Ameren Missouri have incurred, and expect to incur, significant costs with respect to environmental compliance and site
remediation. New or revised environmental regulations, enforcement initiatives, or legislation could result in a significant increase in capital
expenditures and operating costs, decreased revenues, penalties or fines, reduced operations or closure of some of Ameren Missouri’s coal-
and natural gas-fired energy centers, which, in turn, could lead to increased liquidity and financing needs, and higher financing costs. Actions
required to ensure that Ameren Missouri’s facilities and operations are in compliance with environmental laws could be prohibitively
expensive for Ameren Missouri if the costs are not fully recovered through rates. Environmental laws could require Ameren Missouri to close
or to alter significantly the operations of its energy centers. If Ameren Missouri requests recovery of capital expenditures and costs for
environmental compliance through rates, the MoPSC could deny recovery of all or a portion of these costs, prevent timely recovery, or make
changes to the regulatory framework in an effort to minimize rate volatility and customer rate increases. Capital expenditures and costs to
comply with future legislation or regulations might result in Ameren Missouri closing coal-fired energy centers earlier than planned. If these
costs are not recoverable through base rates or other regulatory mechanisms, it could lead to an impairment of assets and reduced
revenues. Any of the foregoing could have an adverse effect on our results of operations, financial positions, and liquidity.
We are subject to business and financial risks related to the impact of climate change legislation, regulation, and emission
reduction goals.
There is increasing concern and activism among various external stakeholders, both nationally and internationally, about climate
change, including 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. State and federal 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. 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 average temperature to below 2 degrees Celsius above
pre-industrial levels and an aspiration to limit the increase to 1.5 degrees Celsius. The Biden administration has announced a new 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. In addition, the Biden administration 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 CO2 emissions. Future federal and state legislation or regulations that mandate limits on the emission of, or impose
taxation on, greenhouse gases could result in a significant increase in capital expenditures and operating costs, decreased revenues,
penalties or fines, or reduced operations of some of Ameren Missouri’s coal- and natural gas-fired energy centers, which, in turn, could lead
to increased liquidity and financing needs, and higher financing costs. Moreover, to the extent Ameren Missouri requests recovery of these
costs through rates, its regulators might deny some or all of, or defer timely recovery of, these costs. 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.
Ameren established a goal of achieving net-zero carbon emissions by 2050. Ameren is also targeting a 50% CO2 emission reduction by
2030 and an 85% reduction by 2040 from the 2005 levels. Achievement of these goals is dependent on many factors, including the pace and
extent of development and deployment of low- to zero-carbon energy technologies and carbon capture technologies, and the cost of those
technologies; natural gas prices; new transmission infrastructure; and constructive energy policies, including those that address investment in
energy infrastructure, global climate change, incentives for clean energy technologies, and environmental regulations. Additional factors
associated with operational risks for the construction and acquisition of electric and natural gas infrastructure may also affect the
achievement of these goals, as further discussed below. The strategy to achieve these goals also relies on continuing to pursue a diverse
portfolio including low-carbon and carbon-free resources and energy-efficiency resources; continuing to participate in efforts to help advance
the development of technologies such as carbon capture, utilization, and sequestration; the use of hydrogen fuel for electric production and
24
energy storage, next generation nuclear, and large-scale long-cycle battery energy storage; and constructively engaging with legislators,
regulators, investors, customers, and other stakeholders to support outcomes leading to a net-zero future.
We are subject to federal regulatory compliance and proceedings, which could result in increasing costs and the potential for
regulatory penalties and other sanctions.
We are subject to FERC regulations, rules, and orders, including standards required by the NERC. As owners and operators of bulk
power transmission systems and electric energy centers, we are subject to mandatory NERC reliability standards, including cybersecurity
standards. In addition, our natural gas transmission, distribution, and storage facilities systems are subject to PHMSA rules and regulations.
Compliance with these reliability standards, rules, and regulations may subject us to higher operating costs and may result in increased
capital expenditures. We may also incur higher operating costs to comply with potential new regulations issued by these regulatory bodies. If
we were found not to be in compliance with these mandatory NERC reliability standards, PHMSA rules and regulations, or FERC regulations,
rules, and orders, we could incur substantial monetary penalties and other sanctions, which could adversely affect our results of operations,
financial position, and liquidity. The FERC can impose civil penalties of approximately $1.4 million per violation per day for violation of its
regulations, rules, and orders, including mandatory NERC reliability standards. 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.
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 2020 IRP, involve substantial risks.
We expect to make significant capital expenditures to maintain and improve our electric and natural gas utility infrastructure and to
comply with existing environmental regulations. We estimate that we will invest up to $18.0 billion (Ameren Missouri – up to $9.2 billion;
Ameren Illinois – up to $8.6 billion; ATXI – up to $0.2 billion) of capital expenditures from 2022 through 2026. For additional information on
these estimates, see Liquidity and Capital Resources – Capital Expenditures in Management’s Discussion and Analysis of Financial
Condition and Results of Operations under Part II, Item 7, of this report. 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.
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. 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; the ability of
suppliers, contractors, and developers to meet contractual commitments timely; 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. With respect to the transition of Ameren Missouri’s generation fleet and achievement of the carbon
emission reduction targets outlined in 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 storage technologies; the ability to qualify for, and use, federal production or investment tax
credits; changes in environmental laws or requirements, including those related to carbon emissions; and energy prices and demand.
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. Operation
of electric generation, transmission, and distribution facilities involves many risks, including:
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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, such as the unplanned outage resulting from non-
nuclear operating issues related to the Callaway Energy Center’s generator that occurred from December 2020 to August 2021;
aging infrastructure that may require significant expenditures to operate and maintain;
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an energy center that might not be permitted to continue to operate if pollution control equipment is not installed by prescribed deadlines
or does not perform as expected;
lack of adequate water required for cooling plant operations;
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;
suppliers and contractors who do not perform as required under their contracts;
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, such as the extremely low temperatures
experienced in mid-February 2021, 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 or 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.
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.
Ameren Missouri’s ability to obtain an adequate supply of coal could limit operation of its coal-fired energy centers.
Ameren Missouri owns and operates coal-fired energy centers. About 98% 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.
Coal suppliers in the Powder River Basin are experiencing financial hardship because of a decrease in demand resulting from increased
natural gas and renewable energy generation, and the impact of environmental regulations and concerns related to coal-fired generation.
These financial hardships have resulted in bankruptcy filings by certain coal suppliers in recent years. As of December 31, 2021, coal
inventories at the Sioux and Rush Island energy centers were near targeted levels, and coal inventories at the Labadie Energy Center were
below targeted levels due to transportation disruptions in 2021. Ameren Missouri is actively managing inventories at the Meramec Energy
Center in preparation for its expected 2022 retirement. However, additional 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. If Ameren Missouri is unable to
obtain an adequate supply of coal under existing agreements, it may be required to purchase coal at higher prices or be forced to reduce
generation at its coal-fired energy centers, which could adversely affect Ameren’s and Ameren Missouri’s results of operations, financial
position, and liquidity.
Ameren Missouri’s ownership and operation of a nuclear energy center creates business, financial, and waste disposal risks.
Ameren Missouri’s ownership of the Callaway Energy Center subjects it to risks associated with nuclear generation, including:
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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;
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uncertainties about contingencies and retrospective premium assessments relating to claims at the Callaway Energy Center or any 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, such as the unplanned outage resulting from
non-nuclear operating issues related to the Callaway Energy Center’s generator that occurred from December 2020 to August 2021;
uncertainties about the technological and financial aspects of decommissioning nuclear facilities at the end of their licensed lives;
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.
The NRC has broad authority under federal law to impose licensing and safety requirements for nuclear facilities. In the event of
noncompliance, the NRC has the authority to impose fines or to shut down a unit, or both, depending upon its assessment of the severity of
the situation, until compliance is achieved. Revised safety requirements promulgated from time to time by the NRC could necessitate
substantial capital expenditures at the Callaway Energy Center. In addition, if a serious nuclear incident were to occur, it could adversely
affect Ameren’s and Ameren Missouri’s results of operations, financial condition, and liquidity. A major incident at a nuclear facility anywhere
in the world could cause the NRC to limit or prohibit the operation of any domestic nuclear unit and could also cause the NRC to impose
additional conditions or requirements on the industry, which could increase costs and result in additional capital expenditures. While the
Callaway Energy Center is in compliance with the current NRC standards relating to seismic design and risk, these standards also require
Ameren Missouri to address periodic changes to seismic hazard data and evaluation methods for the impact of an earthquake on its
Callaway Energy Center due to its proximity to a fault line, which could require seismic risk evaluation updates and installation of additional
capital equipment.
Our natural gas distribution and storage activities involve numerous risks that may result in accidents and increased operating
costs.
Inherent in our natural gas distribution and storage activities are a variety of hazards and operating risks, such as leaks, explosions,
mechanical problems and cybersecurity risks, which could cause substantial financial losses, including fines and penalties. In addition, these
hazards could result in serious injury, loss of human life, significant damage to property, environmental impacts, and impairment of our
operations, which in turn could lead us to incur substantial losses. The location of 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. A major domestic incident involving natural gas distribution, and storage systems could result in additional capital
expenditures and/or increased operations and maintenance expenses for us and increased regulation of natural gas utilities. The occurrence
of any of these events could adversely affect our results of operations, financial position, and liquidity.
Significant portions of our electric generation, transmission, and distribution facilities and natural gas transmission and
distribution facilities are aging. This aging infrastructure may require significant additional maintenance or replacement. Ameren
Missouri could be adversely affected if it is unable to recover the remaining investment, if any, and decommissioning costs
associated with the retirement of an energy center, as well as the ability to earn a return on that remaining investment and those
decommissioning costs.
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. The age of these energy centers increases the risks of unplanned outages, reduced generation output, and higher
maintenance expense. Further, Ameren Missouri would be adversely affected if the MoPSC does not allow recovery of the remaining
investment and decommissioning costs associated with the retirement of an energy center, as well as the ability to earn a return on that
remaining investment and those decommissioning costs. In addition, as discussed above, Ameren Missouri expects the retirement date of its
Rush Island Energy Center to be accelerated from the date reflected in depreciation rates approved in the December 2021 MoPSC electric
rate order. Aging transmission and distribution facilities are more prone to failure than new facilities, which results in higher maintenance
expense and the need to replace these facilities with new infrastructure. Even when the system is properly maintained, its reliability may
ultimately deteriorate and negatively affect our ability to serve our customers, which could result in increased costs associated with regulatory
oversight. The frequency and duration of customer outages are among the IEIMA performance standards. Any failure to achieve these
standards will result in a reduction in Ameren Illinois’ allowed ROE on electric distribution assets. The higher maintenance costs associated
with aging infrastructure and capital expenditures for new or replacement infrastructure 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.
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Energy conservation, energy efficiency, distributed generation, energy storage, technological advances, and other factors
could reduce energy demand from our customers.
Without a regulatory mechanism to ensure recovery, declines in energy usage could result in an under-recovery of our revenue
requirement or an increase in our customer rates, as the revenue requirement would be spread over less sales volumes, which could
adversely affect our results of operations, financial position, and liquidity. Such declines could occur due to a number of factors, including:
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customer energy-efficiency programs that are designed to reduce energy demand;
energy-efficiency efforts by customers not related to our energy-efficiency programs;
increased customer use of distributed generation sources, such as solar panels and other technologies, which have become more cost-
competitive, with decreasing costs expected in the future, as well as the use of energy storage technologies; and
macroeconomic factors resulting in low economic growth or contraction within our service territories, which could reduce energy
demand.
Decreased use of our generation, transmission, and distribution services might result in stranded costs, which ultimately might not be
recovered through rates, and therefore, could lead to an impairment or abandonment of assets.
FINANCIAL, ECONOMIC, AND MARKET RISKS
Ameren’s holding company structure could limit its ability to pay common stock dividends and to service its debt obligations.
Ameren is a holding company; therefore, its primary assets are its investments in the common stock of its subsidiaries, including Ameren
Missouri, Ameren Illinois, and ATXI. As a result, Ameren’s ability to pay dividends on its common stock depends on the earnings of its
subsidiaries and the ability of its subsidiaries to pay dividends or otherwise transfer funds to Ameren. Similarly, Ameren’s ability to service its
debt obligations is dependent upon the earnings of its operating subsidiaries and the distribution of those earnings and other payments,
including payments of principal and interest under affiliate indebtedness. The payment of dividends to Ameren by its subsidiaries in turn
depends on their results of operations, and other items affecting retained earnings, and available cash. Ameren’s subsidiaries are separate
and distinct legal entities and have no obligation, contingent or otherwise, to pay any dividends or make any other distributions (except for
payments required pursuant to the terms of affiliate borrowing arrangements and cash payments under the tax allocation agreement) to
Ameren. Certain financing agreements, corporate organizational documents, and certain statutory and regulatory requirements may impose
restrictions on the ability of Ameren Missouri, Ameren Illinois, and ATXI to transfer funds to Ameren in the form of cash dividends, loans, or
advances.
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.
A part of our core strategy focuses on disciplined cost management, including prudently monitoring all of our expenses. However, we
have observed and expect future inflationary pressures related to prices of commodities, labor, services, materials, and supplies and other
costs, including in the areas of health care and pension costs. These inflationary pressures 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. Significant increases in our costs could increase our financing
needs and otherwise adversely affect our results of operations, financial position, and liquidity.
Related to benefits, 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. 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 $717 million as of December 31, 2021. Ameren expects to fund its pension plans at a level equal to the greater of the pension
cost or the legally required minimum contribution. Based on its assumptions at December 31, 2021, its investment performance in 2021, and
its pension funding policy, Ameren, Ameren Missouri, and Ameren Illinois do not expect to make material contributions in the aggregate over
the next five years. These estimated contributions may change based on actual investment performance, changes in interest rates, changes
in our assumptions, changes in government regulations, and any voluntary contributions. In addition to the costs of our pension plans, the
costs of providing health care benefits to our employees and retirees have increased in recent years. We believe that our employee benefit
costs, including costs of health care plans for our employees and former employees, will continue to rise. Future legislative changes related
to health care could also significantly change our benefit programs and costs.
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GENERAL RISKS
Our results of operations, financial position, and liquidity have been and are expected to continue to be adversely affected by
the international public health emergency associated with the COVID-19 pandemic.
The COVID-19 pandemic continues to affect our results of operations, financial position, and liquidity. While our electric sales volumes,
excluding the estimated effects of weather and customer energy-efficiency programs, increased in 2021, compared to 2020, and total sales
volume levels were more comparable to pre-pandemic levels, there has been a shift in sales volumes by customer class, with an increase in
residential sales, and a decrease in commercial and industrial sales. The continued effect of the COVID-19 pandemic on our results of
operations, financial position, and liquidity in subsequent periods will depend on its severity and longevity, future regulatory or legislative
actions with respect thereto, and the resulting impact on business, economic, and capital market conditions. In addition, although restrictions
on social activities and nonessential businesses implemented in our service territories in 2020 have been relaxed, additional restrictions may
be imposed in the future. As a result of the COVID-19 pandemic, economic activity has been disrupted in the service territories of Ameren
Missouri and Ameren Illinois.
The COVID-19 pandemic could continue to affect total electric sales volumes and sales by customer class. Pursuant to the PISA,
Ameren Missouri’s electric rates are limited to a 2.85% rate cap. Long-term declines in sales volumes, along with increased capital
investments and operating costs, could result in Ameren Missouri’s inability to recover amounts exceeding the rate cap. While the revenues
from Ameren Illinois’ electric distribution business, residential and small nonresidential customers of Ameren Illinois’ natural gas distribution
business, and Ameren Illinois’ and ATXI’s electric transmission businesses are decoupled from changes in sales volumes, earnings at
Ameren Missouri and those associated with Ameren Illinois’ large nonresidential natural gas customers are exposed to such changes.
Our customers’ payment for our services has been impacted by the COVID-19 pandemic, resulting in a decrease to cash from
operations. For most of the period from March 2020 through June 2021, the ICC limited disconnection activities and late fees for customer
nonpayment to varying degrees based on customer class. A March 2021 ICC order also required Ameren Illinois to offer deferred payment
arrangements extending to 18 months to all residential customers through June 2021. Ameren Illinois’ electric distribution and natural gas
distribution businesses have bad debt riders, which provide for recovery of bad debt write-offs, net of any subsequent recoveries. Ameren
Missouri does not have a bad debt rider or tracker, and thus its earnings are exposed to increases in bad debt expense, absent regulatory
relief. However, Ameren Missouri has not experienced and does not expect a material impact to earnings from increases in bad debt
expense.
In addition, suppliers and contractors may not perform as provided under their contracts. This could cause delays in construction
projects, or the performance of necessary maintenance to our electric and natural gas infrastructure, which could lead to failures of
equipment that can result in unanticipated liabilities or unplanned outages. Delays in our construction projects could also result in reduced
planned capital expenditures and decreased rate base growth.
Also, our businesses depend on skilled professional and technical employees. Our operations could be adversely affected if a large
portion of our employees contracted COVID-19 or became quarantined at the same time. This could lead to facility shutdowns and
disruptions in the delivery of electricity and natural gas to our customers. In addition, remote working arrangements increase our data security
risks, including loss of data related to sensitive customer, employee, financial, and operating system information, through insider or outsider
actions. Further, compliance with any future vaccine mandates associated with COVID-19 may result in labor shortages, including shortages
in skilled professional and technical labor, supply chain disruptions, delays in contractors’ performance or completion of work, and/or
increased costs for us, our contractors, or our suppliers.
Ameren cannot predict the extent or duration of the COVID-19 pandemic or its effects on the global, national, or local economy, the
capital markets, or its customers, suppliers, business continuity plans, results of operations, financial position, liquidity, planned rate base
growth, or sales volumes.
Customers’, investors’, legislators’, and regulators’ opinions of us are affected by many factors, including system reliability,
implementation of our strategic plan, protection of customer information, rates, media coverage, and ESG practices, as well as
actions by other utility companies. Negative opinions developed by customers, investors, legislators, or regulators could harm our
reputation.
Our results are influenced by the expectations of our customers, investors, legislators, and regulators. Those expectations are based, in
part, on the reliability and affordability of our utility services. Service interruptions and facility shutdowns can occur due to failures of
equipment as a result of severe or destructive weather or other causes. The ability of Ameren Missouri and Ameren Illinois to respond
promptly to such failures can affect 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 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 customer satisfaction.
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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 2020 IRP, may affect customers’, investors’, legislators’, and regulators’ opinions and
actions. 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. Customers’, investors’, legislators’, and regulators’ opinions of
us can also be affected by media coverage, including social media, which may include information, whether factual or not, that damages our
brand and reputation.
If customers, investors, legislators, or regulators 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 opinions about us or other utility companies could make it more difficult for our businesses to achieve
favorable legislative or regulatory outcomes. Negative opinions could also result in sales volume reductions or increased use of distributed
generation by our customers. Any of these consequences could adversely affect our results of operations, financial position, and liquidity.
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. Further, a significant portion of our work force is nearing retirement. As of December 31, 2021,
approximately 26%, 27%, and 25% of Ameren’s, Ameren Missouri’s, and Ameren Illinois’ total employees were 55 years old or older,
respectively. We are also party to collective bargaining agreements that collectively represent about 48%, 58%, and 55% of Ameren’s,
Ameren Missouri’s and Ameren Illinois’ total employees, respectively. All of the Ameren Missouri collective bargaining unit contracts expire in
2022. The Ameren Illinois collective bargaining unit contracts expire in 2022 and 2023, which cover 92% and 8% of represented employees,
respectively. Due to the COVID-19 pandemic, a large portion of our non-field employees have been primarily working from home since March
2020. While our workforce has largely been stable, we experienced an increase in our attrition rate in 2021. Certain events, such as
significant delays in finding appropriate replacement talent, inadequately trained replacement employees, a mismatch of skill sets to future
needs, any work stoppage experienced in connection with negotiations of collective bargaining agreements, or challenges with transitioning
working arrangements, could adversely affect our operations.
Our operations are subject to acts of terrorism, cyber attacks, and other intentionally disruptive acts.
Like other electric and natural gas utilities, our energy centers, fuel storage facilities, transmission and distribution facilities, and
enterprise information systems may be affected by malicious acts, terrorist activities and other intentionally disruptive acts, including cyber
attacks, which could disrupt our ability to produce or distribute our energy products. There have been attacks in the industry on energy
infrastructure, such as substations and related assets, in the past, and there may be more attacks in the future as technology becomes more
prevalent in energy infrastructure and the threat landscape continues to expand. Any such incident could limit our ability to generate,
purchase, or transmit power or natural gas and could have significant regional economic consequences. Any such disruption could result in a
significant decrease in revenues, a significant increase in costs including those for repair, or adversely affect economic activity in our service
territory which, in turn, could adversely affect our results of operations, financial position, and liquidity.
There has been an increase in the number and sophistication of physical and cyber attacks across all industries worldwide. Cyber
attacks could include viruses, malicious or destructive code, phishing attacks, denial of service attacks, ransomware and other ransom-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. A security breach at our physical assets or in our information systems could affect the reliability of the transmission and distribution
system, disrupt electric generation, including nuclear generation, and/or subject us to financial harm resulting from theft or the inappropriate
release or destruction of certain types of information, including sensitive customer, employee, financial, and operating system information.
Many of our suppliers, vendors, contractors, and information technology providers have access to systems that support our operations and
maintain customer and employee data. A breach of these third-party systems could adversely affect our business as if it was a breach of our
own system. If a significant breach occurred, our reputation could be adversely affected, customer confidence could be diminished, and/or we
could be subject to increased costs associated with regulatory oversight, fines or legal claims, any of which could result in a significant
decrease in revenues or significant costs for remedying the impacts of such a breach. Our generation, transmission, and distribution systems
are part of an interconnected grid. Therefore, a disruption caused by a cyber incident at another utility, electric generator, RTO, or commodity
supplier could also adversely affect our businesses. Insurance might not be adequate to cover losses that arise in connection with these
events. 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.
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Our businesses are dependent on our ability to access the capital markets successfully. We might not have access to
sufficient capital in the amounts and at the times needed, as well as on reasonable terms.
We rely on the issuance of short-term and long-term debt and equity as significant sources of liquidity and funding for capital
requirements not satisfied by our operating cash flow, as well as to refinance existing long-term debt. The inability to raise debt or equity
capital on reasonable terms, or at all, could negatively affect our ability to maintain or to expand our businesses. Events beyond our control,
such as depressed economic conditions, the COVID-19 pandemic, or extreme volatility in the debt, equity, or credit markets, might create
uncertainty that could increase our cost of capital or impair or eliminate our ability to access the debt, equity, or credit markets, including our
ability to draw on bank credit facilities. Any adverse change in our credit ratings could reduce access to capital and trigger collateral postings
and prepayments. Such changes could also increase the cost of borrowing and the costs of fuel, power, and natural gas supply, among other
things, which could adversely affect our results of operations, financial position, and liquidity.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
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ITEM 2. PROPERTIES
For information on our principal properties, see the energy center and in-service utility-related properties tables below. See also Liquidity
and Capital Resources and Regulatory Matters in Management’s Discussion and Analysis of Financial Condition and Results of Operations
under Part II, Item 7, of this report for a discussion of planned additions. See also Note 5 – Long-term Debt and Equity Financings and
Note 14 – Commitments and Contingencies under Part II, Item 8, of this report.
The following table shows the anticipated capability of Ameren Missouri’s energy centers at the time of Ameren Missouri’s expected
2022 peak summer electrical demand for all energy centers owned as of December 31, 2021:
Primary Fuel Source
Coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nuclear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hydroelectric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total hydroelectric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pumped-storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total wind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total natural gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Oil (CTs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total oil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Methane gas (CT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Solar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total solar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Ameren and Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . .
Energy Center
Labadie(b)
Rush Island(c)
Sioux(d)
Meramec(d)
Callaway(e)
Osage(e)
Keokuk
Location
Franklin County, Missouri
Jefferson County, Missouri
St. Charles County, Missouri
St. Louis County, Missouri
Callaway County, Missouri
Lakeside, Missouri
Keokuk, Iowa
Taum Sauk(e)
High Prairie Renewable
Reynolds County, Missouri
Adair and Schuyler Counties, Missouri
Atchison Renewable
Atchison County, Missouri
Audrain(f)
Venice(g)
Goose Creek(g)
Pinckneyville(g)
Raccoon Creek(g)
Meramec(d)
Kinmundy(g)
Peno Creek(f)
Fairgrounds(d)
Mexico(d)
Moberly(d)
Moreau(d)
Audrain County, Missouri
Venice, Illinois
Piatt County, Illinois
Pinckneyville, Illinois
Clay County, Illinois
St. Louis County, Missouri
Kinmundy, Illinois
Bowling Green, Missouri
Jefferson City, Missouri
Mexico, Missouri
Moberly, Missouri
Jefferson City, Missouri
Maryland Heights
Maryland Heights, Missouri
O’Fallon
Lambert
BJC
South St. Louis
O’Fallon, Missouri
St. Louis County, Missouri
St. Louis, Missouri
St. Louis, Missouri
Net Kilowatt Capability(a)
2,372,000
1,178,000
972,000
510,000
5,032,000
1,194,000
235,000
148,000
383,000
440,000
400,000
298,800
698,800
616,000
489,000
444,000
316,000
308,000
226,000
210,000
172,000
2,781,000
55,000
55,000
55,000
55,000
220,000
9,000
4,500
900
1,600
200
7,200
10,765,000
(a)
(b)
(c)
(d)
(e)
(f)
(g)
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. The on-demand capability for wind and solar units is zero.
The Labadie Energy Center is scheduled to retire 1,186,000 kilowatts by 2036 and 1,186,000 kilowatts by 2042.
The Rush Island Energy Center was scheduled to retire by 2039 as noted in the 2020 IRP. However, 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.
The Sioux and Meramec energy centers are scheduled to retire by 2028 and 2022, respectively. The Fairgrounds, Mexico, Moberly, and Moreau energy centers are
scheduled to be retired by 2026 as noted in the 2020 IRP.
The operating licenses for the Callaway, Osage, and Taum Sauk energy centers expire in 2044, 2047, and 2044, respectively.
There are economic development arrangements applicable to these CTs, as discussed below.
See Illinois Emissions Standards in Note 14 – Commitments and Contingencies under Part II, Item 8, of this report.
32
The following table presents in-service electric and natural gas utility-related properties for Ameren Missouri and Ameren Illinois as of
December 31, 2021:
Circuit miles of electric transmission lines(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Circuit miles of electric distribution lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Percentage of circuit miles of electric distribution lines underground . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miles of natural gas transmission and distribution mains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Underground natural gas storage fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total working capacity of underground natural gas storage fields in billion cubic feet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a)
ATXI owns 545 miles of transmission lines not reflected in this table.
Our other properties include office buildings, warehouses, garages, and repair shops.
Ameren
Missouri
3,109
33,656
Ameren
Illinois
4,659
45,890
24 %
16 %
3,480
—
—
18,620
12
24
With only a few exceptions, we have fee title to all principal energy centers and other units of property material to the operation of our
businesses, and to the real property on which such facilities are located (subject to mortgage liens securing our outstanding first mortgage
bonds and to certain permitted liens and judgment liens). The exceptions are as follows:
•
•
Certain property is situated on lands occupied under leases, easements, franchises, licenses, or permits. 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, Atchison Renewable, Peno Creek CT and Audrain CT energy centers; Ameren Missouri’s
Maryland Heights, Lambert, and BJC energy centers; certain substations; and most transmission and distribution lines and natural gas
mains. The United States or the state of Missouri may own or may have paramount rights with respect to certain lands lying in the bed of
the Osage River or located between the inner and outer harbor lines of the Mississippi River on which certain of Ameren Missouri’s
energy centers and other properties are located.
The United States, the state of Illinois, the state of Iowa, or the city of Keokuk, Iowa, may own or may have paramount rights with
respect to certain lands lying in the bed of the Mississippi River on which a portion of Ameren Missouri’s Keokuk Energy Center is
located.
Substantially all of the properties and plant of Ameren Missouri and Ameren Illinois are subject to the liens of the indentures securing
their mortgage bonds.
Ameren Missouri has conveyed most of its Peno Creek CT Energy Center to the city of Bowling Green, Missouri through December
2022. Ameren Missouri has 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 is responsible for all operation and maintenance for the energy center.
Ownership of the energy center will transfer to Ameren Missouri at the expiration of the agreement, at which time the property, plant, and
equipment will become subject to the lien of the Ameren Missouri mortgage bond indenture.
Ameren Missouri operates a CT energy center located in Audrain County, Missouri. Ameren Missouri has 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 is
responsible for all operation and maintenance for the energy center. The agreement will expire in December 2023. Ownership of the energy
center will transfer to Ameren Missouri at the expiration of the agreement, at which time the property, plant, and equipment will become
subject to the lien of the Ameren Missouri mortgage bond indenture.
ITEM 3.
LEGAL PROCEEDINGS
We are involved in legal and administrative proceedings before various courts and agencies with respect to matters that arise in the
ordinary course of business, some of which involve substantial amounts of money. We believe that the final disposition of these proceedings,
except as otherwise disclosed in this report, will not have a material adverse effect on our results of operations, financial position, or liquidity.
Risk of loss is mitigated, in some cases, by insurance or contractual or statutory indemnification. We believe that we have established
appropriate reserves for potential losses. For additional information on material legal and administrative proceedings, see 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.
Pursuant 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
Not applicable.
33
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, 2021, all their positions and offices held with the Ameren Companies as of February 22, 2022, and their tenures as officers,
and their titles for at least the last five years.
AMEREN CORPORATION:
Name
Age Positions
Period
Warner L. Baxter............
Martin J. Lyons, Jr. .........
60 Executive Chairman; Ameren .......................................................... January 2022 – Present
Chairman, President, and Chief Executive Officer; Ameren................ 2014(a) – January 2022
55 President and Chief Executive Officer; Ameren................................. January 2022 – Present
Michael L. Moehn...........
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
52 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. Nwamu..........
50 Senior Vice President, General Counsel, and Secretary; Ameren ....... August 2019 – Present
Senior Vice President and Deputy General Counsel; Ameren
Services ........................................................................................
Vice President and Deputy General Counsel; Ameren Services ......... September 2016 – January 2019
January 2019 – August 2019
Theresa A. Shaw............
49 Senior Vice President, Finance, and Chief Accounting Officer;
August 2021 – Present
Ameren .........................................................................................
Senior Vice President, Regulatory Affairs and Financial Services;
Ameren Illinois ...............................................................................
September 2019 – August 2021
Vice President, Regulatory Affairs and Financial Services; Ameren
Illinois ...........................................................................................
Vice President, Internal Audit; Ameren ............................................. June 2014 – July 2018
July 2018 – August 2019
(a)
Elected President of Ameren in February 2014, Chief Executive Officer of Ameren in April 2014, and Chairman of Ameren in July 2014.
34
SUBSIDIARIES:
Name
Age Positions
Period
Bhavani Amirthalingam ...
46 Senior Vice President and Chief Digital Information Officer; Ameren
March 2018(a) – Present
Services ........................................................................................
Mark C. Birk...................
57 Chairman and President; Ameren Missouri....................................... January 2022 – Present
Senior Vice President, Customer and Power Operations; Ameren
Missouri ........................................................................................
Senior Vice President, Customer Operations; Ameren Missouri.......... January 2017 – October 2017
Senior Vice President, Corporate Safety, Planning and Operations
Oversight; Ameren Services............................................................
October 2017 – January 2022
April 2015 – January 2017
Fadi M. Diya ..................
Mary P. Heger................
59 Senior Vice President and Chief Nuclear Officer; Ameren Missouri ..... January 2014 – Present
65 Senior Vice President, Customer Experience; Ameren Illinois ............ February 2019 – Present
Mark C. Lindgren............
Senior Vice President and Chief Information Officer; Ameren
Services ........................................................................................
54 Senior Vice President, Corporate Communications, and Chief Human
Resources Officer; Ameren Services................................................
September 2015 – February 2019
September 2015 – Present
Richard J. Mark..............
Shawn E. Schukar..........
66 Chairman and President; Ameren Illinois.......................................... June 2012 – Present
60 Chairman and President; ATXI ........................................................ May 2017 – Present
Senior Vice President, Transmission Operations, Construction and
Project Management; ATXI .............................................................
December 2013 – May 2017
(a)
Bhavani Amirthalingam served as the Chief Information Officer and Vice President North America for Schneider Electric SE from January 2015 to March 2018.
Officers are generally elected or appointed annually by the respective board of directors of each company, following the election of
board members at the annual meetings of shareholders. No special arrangement or understanding exists between any of the above-named
executive officers and the Ameren Companies nor, to our knowledge, with any other person or persons pursuant to which any executive
officer was selected as an officer. There are no family relationships among the executive officers or between any executive officers and any
directors of the Ameren Companies. 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
PART II
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 40,340 on
January 31, 2022. There is no trading market for the common stock of Ameren Missouri and Ameren Illinois. 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, 2021, to December 31, 2021.
Performance Graph
The following graph shows Ameren’s cumulative TSR during the five years ended December 31, 2021. 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, 2016, in Ameren common stock and in each of the indices shown and that all of the dividends were reinvested.
Comparison of Five-Year Cumulative Return
$225
$200
$175
$150
$125
$100
2016
2017
2018
2019
2020
2021
Ameren (AEE)
S&P 500 Index
S&P 500 Utility Index
Philadelphia Utility Index
36
December 31,
Ameren (AEE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
S&P 500 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S&P 500 Utility Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Philadelphia Utility Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016
100.00
100.00
100.00
100.00
$
2017
115.96
121.83
112.11
112.82
$
2018
132.17
116.49
116.72
116.79
$
2019
159.69
153.18
147.47
148.11
$
2020
166.51
181.36
148.18
152.14
$
2021
194.96
233.43
174.36
179.90
Ameren management cautions that the stock price performance shown above should not be considered indicative of future stock price
performance.
ITEM 6.
(RESERVED)
ITEM 7.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Ameren, headquartered in St. Louis, Missouri, is a public utility holding company whose primary assets are its equity interests in its
subsidiaries. Ameren’s subsidiaries are separate, independent legal entities with separate businesses, assets, and liabilities. 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. 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.
Ameren has four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren
Transmission. The Ameren Missouri segment includes all of the operations of Ameren Missouri. Ameren Illinois Electric Distribution consists
of the electric distribution business of Ameren Illinois. Ameren Illinois Natural Gas consists of the natural gas business of Ameren Illinois.
Ameren Transmission primarily consists of the aggregated electric transmission businesses of Ameren Illinois and ATXI. See Note 16 –
Segment Information under Part II, Item 8, of this report for further discussion of Ameren’s and Ameren Illinois’ segments.
Ameren’s financial statements are prepared on a consolidated basis and therefore include the accounts of its majority-owned
subsidiaries. All intercompany transactions have been eliminated, except as disclosed in Note 13 – Related-party Transactions under Part II,
Item 8, of this report. Ameren Missouri and Ameren Illinois have no subsidiaries. All tabular and graphical dollar amounts are in millions,
unless otherwise indicated.
The following discussion should be read in conjunction with the financial statements contained in this Form 10-K. We intend for this
discussion to provide the reader with information that will assist in understanding our financial statements, the changes in certain key items in
those financial statements, and the primary factors that accounted for those changes, as well as how certain accounting principles affect our
financial statements. The discussion also provides information about the financial results of our business segments to provide a better
understanding of how those segments and their results affect the financial condition and results of operations of Ameren as a whole.
Discussion regarding our financial condition and results of operations for the year ended December 31, 2019, including comparisons with the
year ended December 31, 2020, is included in Item 7 of our Form 10-K for the year ended December 31, 2020, filed with the SEC
on February 22, 2021.
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. We believe this per diluted share information helps readers to
understand the impact of these factors on Ameren’s earnings per diluted share.
37
OVERVIEW
Our core strategy is driven by the following three pillars:
Investing in and operating our utilities in
a manner consistent with existing
regulatory frameworks
Enhancing regulatory frameworks and
advocating for responsible energy and
economic policies
We seek to earn competitive returns on
investments in our businesses. Accordingly,
we remain focused on disciplined cost
management and strategic capital allocation.
We align our overall spending, both
operating and capital, with economic
conditions and with the frameworks
established by our regulators, to create and
capitalize on investment opportunities for the
benefit of our customers and shareholders.
We focus on minimizing the gap between
allowed and earned ROEs and allocating
capital resources to business opportunities
that we expect will provide the most benefit
to our customers and offer the most
attractive risk-adjusted return potential.
We seek to partner with our stakeholders,
including our customers, regulators, federal
and state legislators, and RTOs, to enhance
our regulatory frameworks and advocate for
responsible energy and economic policies
for the benefit of our customers and
shareholders. We believe constructive
regulatory frameworks for investment exist at
all of our business segments. Accordingly,
we expect to earn competitive returns on
investments in our businesses and realize
timely recovery of our costs in the coming
years with the benefits accruing to both
customers and shareholders.
Rate Base ($ in billions)(a)
Constructive Regulatory Frameworks(c)
Creating and capitalizing on
opportunities for investment for the
benefit of our customers and
shareholders
We seek to make prudent investments that
benefit our customers. The goal of these
investments is to maintain and enhance the
reliability of our services, develop cleaner
sources of energy, create economic
development opportunities in our region, and
provide customers with more options and
greater control over their energy usage,
among other things. By prudently investing
in our businesses, we believe that we deliver
superior value to both customers and
shareholders.
Improved Reliability(f)
Segment
Regulatory Framework
Ameren
Transmission
Formula ratemaking
Allowed ROE of 10.52%
Ameren Illinois
Natural Gas
Future test year ratemaking and
QIP, PGA, VBA
Allowed ROE of 9.67%
Ameren Illinois
Electric
Distribution
Ameren
Missouri
Formula ratemaking
Allowed ROE of 30-year U.S.
Treasury + 5.8%(d)
Historical test year ratemaking and
PISA, RESRAM, FAC, MEEIA, PGA
Allowed ROE is not specified(e)
Customer Rates, (¢/KWH)(g)
TSR 2016-2021(h)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
Reflects year-end rate base except for Ameren Transmission, which is average rate base.
Compound annual growth rate.
As of January 2022 for Ameren Transmission, Ameren Illinois Natural Gas, and Ameren Illinois Electric
Distribution. As of February 28, 2022, for Ameren Missouri.
Allowed ROE is subject to performance standards as discussed in Note 2 – Rate and Regulatory Matters
under Part II, Item 8, of this report.
Allowed ROE applicable to electric and natural gas delivery service.
As measured by the System Average Interruption Frequency Index (SAIFI). Represents the average of
Ameren Missouri and Ameren Illinois.
Average residential electric prices. Source: Edison Electric Institute, “Typical Bills and Average Rates Report”
for the 12 months ended June 30, 2021.
Ameren management cautions that the stock price performance shown above should not be considered
indicative of future stock price performance.
Key announcements, updates, and regulatory outcomes
The COVID-19 pandemic continues to affect our results of operations, financial position, and liquidity. While our electric sales volumes,
excluding the estimated effects of weather and customer energy-efficiency programs, increased in 2021, compared to 2020, and total sales
volume levels were more comparable to pre-pandemic levels, there has been a shift in sales volumes by customer class, with an increase in
residential sales, and a decrease in commercial and industrial sales. The continued effect of the COVID-19 pandemic on our results of
operations, financial position, and liquidity in subsequent periods will depend on its severity and longevity, future regulatory or legislative
actions with respect thereto, and the resulting impact on business, economic, and capital market conditions. We continue to assess the
impacts the COVID-19 pandemic is having on our businesses, including impacts on electric and natural gas sales volumes, liquidity, bad debt
expense, and supply chain operations. For further discussion of these and other matters discussed below, see Note 1 – Summary of
Significant Accounting Policies and Note 2 – Rate and Regulatory Matters under Part II, Item 8, of this report, and Results of Operations,
Liquidity and Capital Resources, and Outlook sections below. In addition, for information regarding Ameren Illinois’ suspension and
38
subsequent reinstatement of customer disconnection activities and late fee charges for nonpayment, see Note 2 – Rate and Regulatory
Matters under Part II, Item 8, of this report.
Due to extremely cold winter weather in mid-February 2021, Ameren Missouri and Ameren Illinois experienced higher than anticipated
commodity costs for natural gas purchased for resale and purchased power, which contributed to the acceleration of the timing of certain
planned 2021 long-term debt issuances. Ameren Missouri and Ameren Illinois have cost recovery mechanisms in place that provide recovery
of the higher natural gas costs and purchased power from customers over periods of time established under the applicable mechanisms.
In January 2021, Ameren Missouri acquired a 300-MW wind generation project located in northwestern Missouri. As of June 30, 2021,
Ameren Missouri had placed the project in service as the Atchison Renewable Energy Center. The purchase price of the energy center was
approximately $500 million, including an immaterial amount of transaction costs. In December 2020, Ameren Missouri acquired a 400-MW
wind generation project located in northeastern Missouri for approximately $615 million, and placed the assets in service as the High Prairie
Renewable Energy Center. The purchase price included $564 million of cash, a deferred purchase price obligation withheld as credit support
in relation to certain potential claims, contingent consideration, and transaction costs. Both renewable energy centers support Ameren
Missouri’s compliance with the Missouri renewable energy standard.
During its return to full power after the completion of the last refueling and maintenance outage in late December 2020, the Callaway
Energy Center experienced a non-nuclear operating issue related to its generator. After replacement of certain key components of the
generator, the energy center returned to service in early August 2021. The cost of generator repairs was approximately $60 million, which
was largely capital expenditures. See Note 9 – Callaway Energy Center under Part II, Item 8, of this report for additional information.
In August 2021, the United States Court of Appeals for the Eighth Circuit issued a decision that affirmed the United States District Court
for the Eastern District of Missouri’s January 2017 liability ruling and the district court’s September 2019 remedy order as it related to the
installation of a flue gas desulfurization system at the Rush Island Energy Center, but reversed the order as it related to the installation of a
dry sorbent injection system at the Labadie Energy Center. In November 2021, the court of appeals issued an order denying requests for
consideration previously sought by both Ameren Missouri and the United States Department of Justice. Based on its assessment of available
legal, operational and regulatory alternatives, Ameren Missouri has determined not to further appeal the court rulings and, in December 2021,
filed a motion 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. The district court is under no deadline to issue a ruling
revising the remedy order. In January 2022, the MISO completed a preliminary assessment regarding potential impacts of the retirement to
the regional electric power system, which indicated transmission upgrades and voltage support would be needed in advance of the retirement
to address reliability concerns. In February 2022, Ameren Missouri expects to formally notify the MISO of its intent to retire the Rush Island
Energy Center. Upon receipt of the formal notification, the MISO will conduct a final reliability assessment. The MISO must also separately
approve the specific upgrades and transmission support required to address reliability concerns noted in the assessment. Related to this
matter, in February 2022, the MoPSC issued an order directing the MoPSC staff to review Ameren Missouri’s planned accelerated retirement
of the Rush Island Energy Center, including potential impacts on the reliability and cost of Ameren Missouri’s service to its customers,
Ameren Missouri’s plans to mitigate the customer impacts of the accelerated retirement, and the prudence of Ameren Missouri’s actions and
decisions with regard to the Rush Island Energy Center, among other things. The MoPSC staff is under no deadline to complete this review.
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 that became effective in August 2021. See Note 14 – Commitments and Contingencies under Part II, Item 8, of this
report for additional information.
In September 2021, the MoPSC issued an order approving Ameren Missouri’s energy savings results for the second year of the MEEIA
2019 program. As a result of this order, and in accordance with revenue recognition guidance, Ameren Missouri recognized revenues of
$9 million in 2021.
In December 2021, the MoPSC issued orders in Ameren Missouri’s 2021 electric service and natural gas delivery service regulatory rate
reviews. The orders will result in increases of $220 million and $5 million to Ameren Missouri’s annual revenue requirements for electric retail
service and natural gas delivery service, respectively. The electric revenue requirement increase is based on a rate base of $10.2 billion,
infrastructure investments as of September 30, 2021, and a change in the depreciable lives of the Sioux and Rush Island energy centers’
assets consistent with Ameren Missouri’s 2020 IRP. The electric order did not specify an ROE, but specified that Ameren Missouri’s
September 30, 2021 capital structure, which was composed of 51.97% common equity, will be used in the PISA and RESRAM. The electric
rate order provides for the continued use of the FAC and trackers for pension and postretirement benefits, uncertain income tax positions,
certain excess deferred income taxes, and renewable energy standard costs that the MoPSC previously authorized in earlier electric rate
orders. It also establishes a five-year recovery period for $61 million of certain costs associated with the Meramec Energy Center, which is
expected to be retired in 2022. The orders also approved for recovery $9 million of certain costs and forgone customer late fee and
reconnection fee revenues resulting from the COVID-19 pandemic that were accumulated pursuant to March 2021 MoPSC orders. The new
electric and natural gas rates will become effective on February 28, 2022.
39
In February 2022, 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 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 $8.4 billion over the five-year period from 2022 through 2026, with expenditures largely recoverable under the PISA and the
RESRAM. The planned investments in 2024 through 2026 are based on the assumption that Ameren Missouri requests and receives MoPSC
approval of an extension of the PISA from December 2023 to December 2028.
In March 2021, the ICC issued an order approving Ameren Illinois’ requested tariff to reconcile its electric distribution service revenue
requirement once Ameren Illinois ceases to update customer rates under performance-based formula ratemaking. The last update under
such ratemaking is anticipated to be for 2023 customer rates. The tariff would allow Ameren Illinois to reconcile its revenue requirement for
customer rates established for 2022 and 2023. To utilize the reconciliation, Ameren Illinois is required to file a request to update its electric
distribution service rates through either a traditional regulatory rate review, which may be based on a future test year and would reflect a
proposed ROE subject to ICC approval, or through the filing of an MYRP, which Ameren Illinois expects to file for rates effective beginning in
2024 pursuant to the IETL as described below. The rate update request would need to be filed by mid-January 2023. Pursuant to the order,
Ameren Illinois’ 2022 and 2023 revenues would 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. The revenue requirement reconciliation adjustment would be collected from, or refunded to, customers within two years
from the end of the reconciled year.
In September 2021, the IETL was enacted, which resulted in changes to the regulatory framework applicable to Ameren Illinois’ electric
distribution business, among other things. The IETL allows Ameren Illinois to file an MYRP with the ICC by mid-January 2023, with rates
effective beginning in 2024. Subject to a constructive outcome regarding the ICC’s determination of performance metrics, Ameren Illinois
anticipates filing an MYRP by mid-January 2023 to establish rates for 2024. Under the MYRP, the ICC would approve base rates for electric
distribution service to be charged to customers for each calendar year of a four-year period, based on each year's forecasted recoverable
costs, an ICC-determined ROE applied to each calendar year of the four-year period, and a common equity ratio of up to 50% being deemed
prudent and reasonable by law, with a higher equity ratio requiring specific ICC approval. The approved ROE would be subject to adjustment
during the four-year period based on certain performance metrics, with aggregate symmetrical performance-based ROE incentives and
penalties ranging from 20 to 60 basis points. The MYRP would also allow Ameren Illinois to reconcile electric distribution service rates to its
actual revenue requirement on an annual basis, subject to an aggregate reconciliation cap of 105% of the annual revenue requirement
approved by the ICC. Certain variations from forecasted costs and costs recovered through riders outside of base rates would be excluded
from the reconciliation cap. Electric distribution service revenues would continue to be decoupled from sales volumes under an MYRP. If
Ameren Illinois does not file an MYRP for rates effective beginning in 2024, its next opportunity to file an MYRP would be for rates effective
beginning in 2028.
In July 2021, the ICC issued an order approving Ameren Illinois’ energy-efficiency plan that includes annual investments in electric
energy-efficiency programs of approximately $100 million per year from 2022 through 2025. Pursuant to the IETL, the planned annual
investments in electric energy-efficiency programs will increase to approximately $120 million. Ameren Illinois expects to file a revised
energy-efficiency plan with the ICC by early March 2022 to reflect the expected increased level of annual investments. The ICC has the ability
to reduce the amount of electric energy-efficiency savings goals in future plan program years if there are insufficient cost-effective programs
available, which could reduce the investments in electric energy-efficiency programs. The electric energy-efficiency program investments and
the return on those investments are collected from customers through a rider and are not recovered through the electric distribution service
performance-based formula ratemaking framework.
In December 2021, the ICC issued an order in Ameren Illinois’ annual update filing that approved a $58 million increase in Ameren
Illinois’ electric distribution service rates beginning in January 2022. This order reflected an increase to the annual performance-based
formula rate based on 2020 actual recoverable costs and expected net plant additions for 2021, an increase to include the 2020 revenue
requirement reconciliation adjustment including a capital structure composed of 51% common equity, and an increase for the conclusion of
the 2019 revenue requirement reconciliation adjustment, which was fully refunded to customers in 2021, consistent with the ICC’s December
2020 annual update filing order.
In December 2021, the ICC issued an order in Ameren Illinois’ annual update filing that approved electric customer energy-efficiency
rates of $61 million beginning in January 2022, which represents an increase of $10 million from 2021 rates.
In February 2021, Ameren’s board of directors increased the quarterly common stock dividend to 55 cents per share, resulting in an
annualized equivalent dividend rate of $2.20 per share. 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.
40
Earnings
Net income attributable to Ameren common shareholders was $990 million, or $3.84 per diluted share, for 2021, and $871 million, or
$3.50 per diluted share, for 2020. Net income was favorably affected in 2021, compared with 2020, by increased infrastructure investments
across all business segments; increased Ameren Missouri electric retail sales, primarily resulting from improving economic conditions and the
effects of weather; and by the results of Ameren Missouri’s March 2020 electric rate order. Earnings in 2021, compared with 2020, were also
favorably affected by higher delivery service rates at Ameren Illinois Natural Gas and a higher recognized ROE at Ameren Illinois Electric
Distribution. Net income was unfavorably affected in 2021, compared with 2020, by the effect of dilution and higher other operations and
maintenance expenses at Ameren Missouri due to the amortization of expenses related to the 2020 scheduled refueling and maintenance
outage at the Callaway Energy Center and increased non-nuclear energy center and distribution maintenance costs, as well as higher other
operations and maintenance expenses due to increased infrastructure maintenance and compliance costs at Ameren Illinois Natural Gas.
Earnings in 2021, compared with 2020, were also unfavorably affected by the absence in 2021 of the FERC’s May 2020 order addressing the
allowed base ROE for FERC regulated transmission rate base under the MISO tariff, which increased earnings in the year-ago period, and
the result of the FERC’s March 2021 order, primarily related to the historical recovery of materials and supplies inventories; increased
financing costs at Ameren (parent) and Ameren Missouri, primarily due to higher long-term debt balances; and increased depreciation and
amortization expenses not recoverable under riders or trackers at Ameren Missouri and Ameren Illinois Natural Gas, primarily due to
additional property, plant, and equipment investments.
Liquidity
At December 31, 2021, Ameren, on a consolidated basis, had available liquidity in the form of cash on hand and amounts available
under the Credit Agreements of $1.8 billion.
In May 2021, Ameren entered into an equity distribution sales agreement pursuant to which Ameren may offer and sell from time to time
up to $750 million of its common stock through an ATM program, which includes the ability to enter into forward sales agreements. During
2021, Ameren issued 1.8 million shares of common stock and received proceeds of $148 million. In September 2021, December 2021, and
January 2022, Ameren entered into forward sale agreements under the ATM program with counterparties relating to 0.4 million, 0.5 million,
and 0.2 million shares of common stock, respectively. See Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of this report
for additional information.
41
Ameren remains focused on strategic capital allocation. The following chart presents 2021 capital expenditures by segment and the
midpoint of projected cumulative capital expenditures for 2022 through 2026 by segment:
2021 Capital Expenditures by Segment
(Total Ameren – $3.5 billion)
(in billions)
Midpoint of 2022 – 2026 Projected Capital
Expenditures by Segment (Total Ameren – $17.3 billion)
(in billions)
$0.6
$0.3
$0.6
$3.5
$2.0
$1.8
$8.9
$3.1
Ameren Missouri(a)
Ameren Illinois Natural Gas
Ameren Illinois Electric Distribution
Ameren Transmission
(a)
Ameren Missouri’s capital expenditures include $525 million for wind generation expenditures for the year ended December 31, 2021. Ameren Missouri’s projected capital
expenditures for 2022 through 2026 includes approximately $0.7 billion of capital expenditures related to coal-fired generation.
For 2022 through 2026, Ameren’s cumulative capital expenditures are projected to range from $16.6 billion to $18.0 billion. The following
table presents the range of projected spending by segment:
Ameren Missouri(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois Electric Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois Natural Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Transmission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Range (in billions)
$
8.5 –
3.0 –
1.7 –
3.4 –
$ 16.6 –
$
9.2
3.3
1.8
3.7
$ 18.0
(a)
Amounts exclude renewable generation investment opportunities of 1,200 MWs by 2026, which are included in Ameren Missouri’s 2020 IRP, and additional investment
opportunities that may be approved by the MISO to address reliability concerns in connection with the planned accelerated retirement of the Rush Island Energy Center.
RESULTS OF OPERATIONS
Our results of operations and financial position are affected by many factors. Economic conditions, including those resulting from the
COVID-19 pandemic discussed below, energy-efficiency investments by our customers and by us, technological advances, distributed
generation, and the actions of key customers can significantly affect the demand for our services. Ameren and Ameren Missouri results are
also affected by seasonal fluctuations in winter heating and summer cooling demands, as well as by energy center maintenance outages.
Additionally, fluctuations in interest rates and conditions in the capital and credit markets affect our cost of borrowing, and our pension and
postretirement benefits costs. Almost all of our revenues are subject to state or federal regulation. This regulation has a material impact on
the rates we charge customers for our services. Our results of operations, financial position, and liquidity are affected by our ability to align
our overall spending, both operating and capital, with the frameworks established by our regulators. See Note 2 – Rate and Regulatory
Matters under Part II, Item 8, of this report for additional information regarding Ameren Missouri’s, Ameren Illinois’, and ATXI’s regulatory
frameworks.
42
We continue to assess the impacts of the COVID-19 pandemic on our businesses, including impacts on electric and natural gas sales
volumes, supply chain operations, and bad debt expense. Regarding uncollectible accounts receivable, Ameren Illinois’ electric distribution
and natural gas distribution businesses have bad debt riders, which provide for recovery of bad debt write-offs, net of any subsequent
recoveries. Ameren Missouri does not have a bad debt rider or tracker, and thus its earnings are exposed to increases in bad debt expense,
absent regulatory relief. However, Ameren Missouri has not experienced and does not expect a material impact to earnings from increases in
bad debt expense. Our accounts receivable balances that were past due or that were a part of a deferred payment arrangement are more
comparable to pre-pandemic levels. As of December 31, 2021, accounts receivable balances that were 30 days or greater past due or that
were a part of a deferred payment arrangement represented 20%, 17%, and 24%, or $94 million, $34 million, and $60 million, of Ameren’s,
Ameren Missouri’s, and Ameren Illinois’ customer trade receivables before allowance for doubtful accounts, respectively. As of December 31,
2019, these percentages were 18%, 18%, and 20%, or $75 million, $30 million, and $45 million, for Ameren, Ameren Missouri, and Ameren
Illinois, respectively. Ameren Missouri’s electric sales volumes have been, and continue to be, affected by the COVID-19 pandemic, including
a shift in sales volumes by customer class compared to pre-pandemic levels, with an increase in residential sales, and a decrease in
commercial and industrial sales, excluding the estimated effects of weather and customer energy-efficiency programs.
Ameren Missouri principally uses coal and enriched uranium for fuel in its electric operations and purchases natural gas for its
customers. Ameren Illinois purchases power and natural gas for its customers. The prices for these commodities can fluctuate significantly
because of the global economic and political environment, weather, supply, demand, inflation, and many other factors. We have natural gas
cost recovery mechanisms for our Illinois and Missouri natural gas distribution businesses, a purchased power cost recovery mechanism for
Ameren Illinois’ electric distribution business, and a FAC for Ameren Missouri’s electric business.
We employ various risk management strategies to reduce our exposure to commodity risk and other risks inherent in our business. The
reliability of Ameren Missouri’s energy centers and our transmission and distribution systems and the level and timing of operations and
maintenance costs and capital investment are key factors that we seek to manage in order to optimize our results of operations, financial
position, and liquidity.
Earnings Summary
The following table presents a summary of Ameren’s earnings for the years ended December 31, 2021 and 2020:
Net income attributable to Ameren common shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Earnings per common share – diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
990
3.84
871
3.50
2021
2020
Net income attributable to Ameren common shareholders in 2021 increased $119 million, or $0.34 per diluted share, from 2020. The
increase was due to net income increases of $82 million, $22 million, $14 million, and $9 million at Ameren Missouri, Ameren Illinois Electric
Distribution, Ameren Transmission, and Ameren Illinois Natural Gas, respectively. 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 $8 million.
Earnings per share in 2021, compared with 2020, were favorably affected by:
•
•
•
•
•
•
•
•
investments in infrastructure and wind generation pursuant to the PISA and the RESRAM, which resulted in increased deferral of
interest expense (21 cents per share);
increased rate base investments at Ameren Transmission and Ameren Illinois Electric Distribution and a higher recognized ROE at
Ameren Illinois Electric Distribution, which increased revenues at these segments (19 cents per share);
the results of the MoPSC’s March 2020 electric rate order, which reduced the base level of expenses at Ameren Missouri, partially offset
by lower base rates, net of recovery for amounts associated with the reduction in sales volumes resulting from MEEIA programs and
recoverable depreciation under the PISA (10 cents per share);
increased electric retail sales, excluding the estimated effects of weather and MEEIA, at Ameren Missouri, largely due to improving
economic conditions, which resulted in increased sales volumes (10 cents per share);
higher base rates pursuant to the ICC's January 2021 natural gas rate order, which increased margins at Ameren Illinois Natural Gas
(8 cents per share);
higher other income, net, due to the absence of charitable donations made in 2020 pursuant to the MoPSC’s March 2020 electric rate
order, increased earnings from equity method investments to advance clean and resilient energy technologies, and a return to more
normal levels of charitable donations at Ameren (parent) (8 cents per share);
the impact of weather on electric retail sales at Ameren Missouri, primarily resulting from warmer summer temperatures experienced in
2021 (estimated at 6 cents per share); and
the results of true-ups to the 2020 revenue requirement reconciliation adjustment in 2021 related to Ameren Illinois’ rates for electric
distribution delivery service and electric customer energy-efficiency program investments (2 cents per share).
43
Earnings per share in 2021, compared with 2020, were unfavorably affected by:
•
•
•
•
•
•
increased other operations and maintenance expenses at Ameren Missouri, primarily due to the amortization of expenses related to the
2020 scheduled refueling and maintenance outage at the Callaway Energy Center and increased non-nuclear energy center and
distribution maintenance costs, and at Ameren Illinois Natural Gas due to increased infrastructure maintenance and compliance activity
(17 cents per share);
the effect of dilution, primarily due to increased weighted-average basic common shares outstanding resulting from issuances of
common shares as detailed in Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of this report (14 cents per share);
the absence in 2021 of the FERC’s May 2020 order addressing the allowed base ROE for FERC regulated transmission rate base under
the MISO tariff, which increased Ameren Transmission earnings in the year-ago period, and the result of the FERC’s March 2021 order,
primarily related to the historical recovery of materials and supplies inventories, which decreased Ameren Transmission earnings in
2021 (7 cents per share);
increased financing costs, primarily at Ameren (parent) and Ameren Missouri, largely due to higher long-term debt balances (5 cents per
share);
increased depreciation and amortization expenses not recoverable under riders or trackers at Ameren Missouri and Ameren Illinois
Natural Gas, primarily due to additional property, plant, and equipment investments (5 cents per share); and
decreased income tax benefits at Ameren (parent), primarily related to employee retention tax credits, changes in the distribution of
taxable income by state, and company owned life insurance, partially offset by increased amortization of excess deferred income taxes
at Ameren Missouri (3 cents per share).
The cents per share information presented is based on the weighted-average basic shares outstanding in 2020 and does not reflect any
change in earnings per share resulting from dilution, unless otherwise noted. Amounts other than variances related to income taxes have
been presented net of income taxes using Ameren’s 2021 statutory tax rate of 26%. For additional details regarding the Ameren Companies’
results of operations, including explanations of Electric and Natural Gas Margins, Other Operations and Maintenance Expenses, Depreciation
and Amortization, Taxes Other Than Income Taxes, Other Income, Net, Interest Charges, and Income Taxes, see the major headings below.
44
Below is Ameren’s table of income statement components by segment for the years ended December 31, 2021 and 2020:
2021
Ameren
Missouri
Electric revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchased power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electric margins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas purchased for resale . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas margins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other operations and maintenance expenses . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes other than income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income (taxes) benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests – preferred stock dividends . . . . . . . . . . . . .
Net income (loss) attributable to Ameren common shareholders . . . . $
2020
Electric revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchased power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electric margins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas purchased for resale . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas margins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other operations and maintenance expenses . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes other than income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income (taxes) benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests – preferred stock dividends . . . . . . . . . . . . .
Net income (loss) attributable to Ameren common shareholders . . . . $
Ameren
Illinois
Electric
Distribution
$
1,639
—
(466)
1,173
Ameren
Illinois
Natural Gas
$
—
—
—
—
Ameren
Transmission
562
$
—
—
562
Other /
Intersegment
Eliminations
$
(116) $
—
87
(29)
—
—
—
(534)
(309)
(76)
254
39
(74)
(53)
166
(1)
957
(382)
575
(236)
(90)
(73)
176
13
(42)
(39)
108
—
—
—
—
(62)
(111)
(8)
381
15
(83)
(82)
231
(1)
(1)
—
(1)
6
(4)
(12)
(40)
36
(47)
20
(31)
—
3,212
(581)
(227)
2,404
141
(60)
81
(948)
(632)
(343)
562
99
(137)
(3)
521
(3)
518
$
165
$
108
$
230
$
(31) $
Ameren
5,297
(581)
(606)
4,110
1,097
(442)
655
(1,774)
(1,146)
(512)
1,333
202
(383)
(157)
995
(5)
990
$
523
$
(94) $
4,911
2,984
$
1,498
$
(490)
(171)
2,323
125
(43)
82
(886)
(604)
(328)
587
76
(190)
(34)
439
(3)
—
(407)
1,091
—
—
—
(506)
(288)
(72)
225
33
(72)
(42)
144
(1)
—
—
—
—
760
(229)
531
(221)
(81)
(65)
164
13
(41)
(36)
100
(1)
—
—
523
—
—
—
(57)
(98)
(8)
360
13
(78)
(78)
217
(1)
—
65
(29)
(2)
—
(2)
9
(4)
(10)
(36)
16
(38)
35
(23)
—
(490)
(513)
3,908
883
(272)
611
(1,661)
(1,075)
(483)
1,300
151
(419)
(155)
877
(6)
871
436
$
143
$
99
$
216
$
(23) $
45
Below is Ameren Illinois’ table of income statement components by segment for the years ended December 31, 2021 and 2020:
2021
Ameren
Illinois
Electric
Distribution
Ameren
Illinois
Natural Gas
Electric revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Purchased power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electric margins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
1,639
(466)
1,173
Natural gas revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas purchased for resale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas margins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other operations and maintenance expenses . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes other than income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Preferred stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income attributable to common shareholder . . . . . . . . . . . . . . . . . . . . . $
2020
Electric revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Purchased power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electric margins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas purchased for resale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas margins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other operations and maintenance expenses . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes other than income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Preferred stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income attributable to common shareholder . . . . . . . . . . . . . . . . . . . . . $
Margins
—
—
—
(534)
(309)
(76)
254
39
(74)
(53)
166
(1)
165
$
$
1,498
(407)
1,091
—
—
—
(506)
(288)
(72)
225
33
(72)
(42)
144
(1)
143
$
—
—
—
957
(382)
575
(236)
(90)
(73)
176
13
(42)
(39)
108
—
108
—
—
—
760
(229)
531
(221)
(81)
(65)
164
13
(41)
(36)
100
(1)
99
Ameren
Illinois
Transmission
$
365
—
Other /
Intersegment
Eliminations
$
Ameren Illinois
1,938
(400)
(66) $
66
365
—
—
—
(50)
(73)
(4)
238
14
(48)
(51)
153
(1)
152
$
—
—
—
—
—
—
—
—
—
—
—
—
—
—
$
329
—
329
—
—
—
(48)
(65)
(3)
213
13
(42)
(46)
138
(1)
137
$
(52) $
52
—
—
—
—
—
—
—
—
—
—
—
—
—
—
$
$
1,538
957
(382)
575
(820)
(472)
(153)
668
66
(164)
(143)
427
(2)
425
1,775
(355)
1,420
760
(229)
531
(775)
(434)
(140)
602
59
(155)
(124)
382
(3)
379
$
$
$
Electric margins are defined as electric revenues less fuel and purchased power costs. Natural gas margins are defined as natural gas
revenues less natural gas purchased for resale. We consider electric and natural gas margins useful measures to analyze the change in
profitability of our electric and natural gas operations between periods. We have included the analysis below as a complement to the financial
information we provide in accordance with GAAP. 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
Electric Margins
)
s
n
o
i
l
l
i
M
(
$
$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
Total by Segment(a)
$4,110
$562
$1,173
$3,908
$523
$1,091
$2,404
$2,323
2021
2020
)
s
n
o
i
l
l
i
M
(
$
$100
$80
$60
$40
$20
$0
Increase by Segment
Overall Ameren Increase of $202 Million
$81
$82
$39
$—
(a)
Includes other/intersegment eliminations of $(29) million and $(29) million in 2021 and 2020, respectively.
Ameren Missouri
Ameren Illinois Electric Distribution
Ameren Transmission
Other/Intersegment Eliminations
Natural Gas Margins
Total by Segment(a)
$655
$575
$611
$531
$81
2021
$82
2020
)
s
n
o
i
l
l
i
M
(
$
$700
$600
$500
$400
$300
$200
$100
$0
)
s
n
o
i
l
l
i
M
(
$
$50
$45
$40
$35
$30
$25
$20
$15
$10
$5
$0
$(5)
Increase (Decrease) by Segment
Overall Ameren Increase of $44 Million
$44
$1
$(1)
(a)
Includes other/intersegment eliminations of $(1) million and $(2) million in 2021 and 2020, respectively.
Ameren Missouri
Ameren Illinois Natural Gas
Other/Intersegment Eliminations
47
The following table presents the favorable (unfavorable) variations by segment for electric and natural gas margins in 2021, compared
with 2020:
Electric revenue change:
2021 versus 2020
Electric and Natural Gas Margins
Ameren
Illinois
Electric
Distribution
Ameren
Missouri
Ameren
Illinois
Natural
Gas
Ameren
Transmission(a)
Other /
Intersegment
Eliminations
Ameren
Effect of weather (estimate)(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Base rates (estimate)(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
$
(6)
Sales volumes and changes in customer usage patterns (excluding the estimated
effects of weather and MEEIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MEEIA performance incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Off-system sales, capacity, and FAC revenues, net . . . . . . . . . . . . . . . . . . . . . . .
Customer energy-efficiency program investments . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost recovery mechanisms – offset in fuel and purchased power(d) . . . . . . . . . . . .
Other cost recovery mechanisms(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total electric revenue change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Fuel and purchased power change:
Energy costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Sales volumes (excluding the estimated effects of weather) . . . . . . . . . . . . . . . . .
Effect of weather (estimate)(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of lower net energy costs included in base rates . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost recovery mechanisms – offset in electric revenue(d) . . . . . . . . . . . . . . . . . . .
Total fuel and purchased power change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Net change in electric margins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Natural gas revenue change:
Effect of weather (estimate)(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Base rates (estimate) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in rate design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
QIP rider . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost recovery mechanisms – offset in natural gas purchased for resale(d) . . . . . . . .
Other cost recovery mechanisms(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total natural gas revenue change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Natural gas purchased for resale change:
Effect of weather (estimate)(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Cost recovery mechanisms – offset in natural gas revenue(d) . . . . . . . . . . . . . . . . .
Total natural gas purchased for resale change . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Net change in natural gas margins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
$
—
63
—
—
—
12
6
59
1
—
—
—
—
—
—
—
—
—
—
$
$
—
39
—
—
—
—
—
—
—
$
—
—
—
—
—
—
—
(22)
—
24
96
35
3
96
12
12
107
1
$
39
$
(22) $
386
35
3
96
—
6
70
—
228
$
141
$
(99) $
—
$
—
$
—
$
(3)
(4)
36
(7)
(70)
(147) $
81
$
(4) $
—
—
—
(1)
21
—
16
$
4
$
(21)
(17) $
(1) $
—
—
—
(59)
(59) $
82
$
—
—
—
—
—
—
—
—
—
—
—
—
$
$
$
$
$
$
$
$
—
—
—
—
—
—
—
28
(2)
9
—
153
9
197
$
—
$
(153)
(153) $
44
$
—
—
—
—
—
39
—
—
—
—
—
—
—
—
—
—
—
—
$
$
$
$
$
$
$
—
—
—
—
—
22
22
—
—
—
—
—
1
—
—
1
—
—
—
1
$
(99)
(3)
(4)
36
(7)
(107)
(184)
202
(4)
28
(2)
9
—
174
9
214
4
(174)
(170)
44
$
$
$
$
$
$
$
(c)
(a)
(b)
Includes an increase in transmission electric margins of $36 million in 2021, compared with 2020, at Ameren Illinois.
Represents the estimated variation resulting primarily from changes in cooling and heating degree days on electric and natural gas demand compared with the prior year;
this variation is based on temperature readings from the National Oceanic and Atmospheric Administration weather stations at local airports in our service territories.
For Ameren Illinois Electric Distribution and Ameren Transmission, base rates include increases or decreases to operating revenues related to the revenue requirement
reconciliation adjustment under formula rates. For Ameren Missouri, base rates exclude an increase of $7 million for the recovery of lost electric margins in 2021,
compared with 2020, resulting from the MEEIA customer energy-efficiency programs. This amount is included in the “sales volumes and changes in customer usage
patterns (excluding the estimated effects of weather and MEEIA)” line item.
Electric and natural gas revenue changes are offset by corresponding changes in “Fuel,” “Purchased power,” and “Natural gas purchased for resale” on the statement of
income, resulting in no change to electric and natural gas margins. Activity in Other/Intersegment Eliminations represents the elimination of related-party transactions
between Ameren Missouri, Ameren Illinois, and ATXI, as well as Ameren Transmission revenue from transmission services provided to Ameren Illinois Electric Distribution.
See Note 13 – Related-party Transactions and Note 16 – Segment Information under Part II, Item 8, of this report for additional information on intersegment eliminations.
(e) Offsetting expense increases or decreases are reflected in “Other operations and maintenance,” “Depreciation and amortization,” or in “Taxes other than income taxes”
(d)
within the “Operating Expenses” section of the statement of income. These items have no overall impact on earnings.
48
Ameren
Ameren’s electric margins increased $202 million, or 5%, in 2021, compared with 2020, because of increased margins at Ameren
Missouri, Ameren Illinois Electric Distribution, and Ameren Transmission, as discussed below. Ameren’s natural gas margins increased
$44 million, or 7%, between years primarily because of increased margins at Ameren Illinois Natural Gas, as discussed below.
Ameren Transmission
Ameren Transmission’s electric margins increased $39 million, or 7%, in 2021, compared with 2020. Base rate revenues were favorably
affected by continued capital investment (+$23 million), as evidenced by a 12% increase in rate base used to calculate the revenue
requirement, and higher recoverable expenses (+$33 million). These increases were partially offset by the absence in 2021 of the FERC’s
May 2020 order addressing the allowed base ROE and the effect of the FERC’s March 2021 order (-$17 million), which required refunds
primarily related to historical recovery of materials and supplies inventories. See Transmission Formula Rate Revisions in Note 2 – Rate and
Regulatory Matters under Part II, Item 8, of this report for additional information regarding the May 2020 and March 2021 FERC orders.
Ameren Missouri
Ameren Missouri’s electric margins increased $81 million, or 3%, in 2021, compared with 2020. Revenues associated with “Cost
recovery mechanisms – offset in fuel and purchased power” increased $70 million in 2021, compared with 2020. The increased revenues are
fully offset by an increase in fuel and purchased power costs, which increased primarily due to higher electric prices, the absence of the
Callaway Energy Center generation and a significant increase in customer demand for electricity in mid-February 2021 due to extremely cold
weather. The changes to “Cost recovery mechanisms – offset in fuel and purchased power” are fully offset by “Cost recovery mechanisms –
offset in electric revenue” in the table above, and result in no impact to margins. Ameren Missouri’s 5% exposure to net energy costs
variances under the FAC is reflected within “Off-system sales, capacity and FAC revenues, net” and “Energy costs”.
The following items had a favorable effect on Ameren Missouri’s electric margins in 2021, compared with 2020:
•
•
•
Excluding the estimated effects of weather and the MEEIA customer energy-efficiency programs, electric sales margins increased an
estimated $32 million. The increase was primarily due to an increase in retail sales volumes in 2021, which were unfavorably affected by
the COVID-19 pandemic in 2020, partially offset by a decrease in the average retail price per kilowatthour due to changes in customer
usage patterns. The change in sales margins is the sum of the change in “Sales volumes and changes in customer usage patterns
(excluding the estimated effects of weather and MEEIA)” on electric revenues (+$35 million) and “Sales volumes (excluding the
estimated effects of weather)” on fuel and purchased power (-$3 million). While the MEEIA customer energy-efficiency programs
reduced retail sales volumes, the recovery of lost electric margins under the MEEIA ensured that electric margins were not affected.
The March 2020 MoPSC electric rate order that resulted in lower net energy costs included in base rates, partially offset by lower electric
base rates, increased margins $30 million. The change in electric base rates is the sum of the change in “Base rates (estimate)” (-$6
million) and the “Effect of lower net energy costs included in base rates” (+$36 million) in the table above.
Summer temperatures were warmer as cooling degree days increased 12%, and winter temperatures were warmer as heating degree
days decreased 4%. The aggregate effect of weather increased margins by an estimated $20 million. The change in margins due to
weather is the sum of the “Effect of weather (estimate)” on electric revenues (+$24 million) and the “Effect of weather (estimate)” on fuel
and purchased power (-$4 million) in the table above.
Ameren Missouri’s electric margins decreased $3 million due to higher net energy costs. The absence of the Callaway Energy Center
generation and the extremely cold weather in mid-February 2021, partially offset by insurance recoveries related to the unplanned Callaway
Energy Center maintenance outage, drove net energy costs higher than those reflected in base rates, resulting from Ameren Missouri’s 5%
exposure to net energy cost variances under the FAC. The change in net energy costs is the sum of “Off-system sales, capacity and FAC
revenues, net” (+$96 million) and “Energy costs” (-$99 million) in the table above.
Ameren Missouri’s natural gas margins were comparable between years. Purchased gas costs increased $21 million in 2021, compared
with 2020, primarily resulting from higher natural gas prices throughout 2021 and the significant increase in customer demand and prices for
natural gas in mid-February 2021 due to extremely cold weather. The increased purchased gas costs are fully offset by an increase in natural
gas revenues under the PGA, resulting in no impact to margin. The increase in purchased gas cost is reflected in “Cost recovery
mechanisms – offset in natural gas revenue” and the associated recoveries from customers is reflected in “Cost recovery mechanisms –
offset in natural gas purchased for resale” in the table above.
Ameren Illinois
Ameren Illinois’ electric margins increased $118 million, or 8%, in 2021, compared with 2020, driven by increased margins at Ameren
Illinois Electric Distribution and Ameren Illinois Transmission. Ameren Illinois Natural Gas’ margins increased $44 million, or 8%, between
years.
49
Ameren Illinois Electric Distribution
Ameren Illinois Electric Distribution’s margins increased $82 million, or 8%, in 2021, compared with 2020. Purchased power costs
increased $59 million in 2021, compared with 2020, primarily resulting from higher electric prices and the significant increase in customer
demand for electricity in mid-February 2021 due to extremely cold weather. The increased purchased power costs are fully offset by an
increase in electric revenues under the cost recovery mechanisms for purchased power, resulting in no impact to margin. 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 following items had a favorable effect on Ameren Illinois Electric Distribution’s margins in 2021, compared with 2020:
•
•
Base rates increased due to a higher recognized ROE (+$9 million), as evidenced by an increase of 49 basis points in the annual
average of the monthly yields of the 30-year United States Treasury bonds, increased capital investment (+$10 million), as evidenced by
a 8% increase in year-end rate base, higher recoverable non-purchased power expenses (+$35 million), and revenue requirement
reconciliation adjustment true-ups for 2020 (+$9 million). The sum of these changes collectively increased margins $63 million.
Revenues increased $12 million due to the recovery of and return on increased customer energy-efficiency program investments under
performance-based formula ratemaking.
Ameren Illinois Natural Gas
Ameren Illinois Natural Gas’ margins increased $44 million, or 8%, in 2021, compared with 2020. Purchased gas costs increased
$153 million in 2021, compared with 2020, primarily resulting from higher natural gas prices throughout 2021 and the significant increase in
customer demand for natural gas in mid-February 2021 due to extremely cold weather. The increased purchased gas costs are fully offset by
an increase in natural gas revenues under the PGA, resulting in no impact to margin. The increase in purchased gas cost is reflected in “Cost
recovery mechanisms – offset in natural gas revenue” and the associated recoveries from customers is reflected in “Cost recovery
mechanisms – offset in natural gas purchased for resale” in the table above. The following items had a favorable effect on Ameren Illinois
Natural Gas’ margins in 2021, compared with 2020:
•
•
•
Revenues increased $28 million due to higher natural gas base rates as a result of the January 2021 natural gas rate order.
Revenues increased $9 million due to additional investment in qualified natural gas infrastructure under the QIP.
Other cost recovery mechanisms increased revenues $9 million, primarily due to increased revenues for excise taxes.
Ameren Illinois Transmission
Ameren Illinois Transmission’s electric margins increased $36 million, or 11%, in 2021, compared with 2020. Margins were favorably
affected by increased capital investment (+$23 million), as evidenced by an 18% increase in rate base used to calculate the revenue
requirement, and higher recoverable expenses (+$26 million). These increases were partially offset by the absence in 2021 of the FERC’s
May 2020 order addressing the allowed base ROE and the effect of the FERC’s March 2021 order (-$13 million), which required refunds
primarily related to historical recovery of materials and supplies inventories. See Transmission Formula Rate Revisions in Note 2 – Rate and
Regulatory Matters under Part II, Item 8, of this report for additional information regarding the May 2020 and March 2021 FERC orders.
50
Other Operations and Maintenance Expenses
$2,000
$1,500
)
s
n
o
i
l
l
i
M
(
$
$1,000
$500
$0
Total by Segment(a)
$1,774
$236
$534
$1,661
$221
$506
$948
$886
2021
2020
Increase by Segment
Overall Ameren Increase of $113 Million
$64
$62
)
s
n
o
i
l
l
i
M
(
$
$48
$32
$16
$0
$28
$15
$5
$3
(a)
Includes $62 million and $57 million at Ameren Transmission in 2021 and 2020, respectively, and other/intersegment eliminations of $(6) million and $(9) million in 2021
and 2020, respectively.
Ameren Missouri
Ameren Illinois Natural Gas
Other/Intersegment Eliminations
Ameren Illinois Electric Distribution
Ameren Transmission
Ameren
Other operations and maintenance expenses at Ameren increased $113 million in 2021, compared with 2020. In addition to changes by
segments discussed below, other operations and maintenance expenses increased $3 million in 2021 for activity not reported as part of a
segment, as reflected in “Other/Intersegment Eliminations” above, primarily because of increased costs for support services.
Ameren Transmission
Other operations and maintenance expenses at Ameren Transmission increased $5 million in 2021, compared with 2020, primarily
because of increased maintenance activity.
Ameren Missouri
The $62 million increase in Ameren Missouri’s other operations and maintenance expenses in 2021, compared with 2020, was primarily
due to the following items:
•
•
•
•
•
•
Energy center maintenance costs, other than Callaway refueling and maintenance costs, increased $29 million, primarily because of
costs related to new wind generation facilities, which are recovered under the RESRAM, and the deferral of projects in 2020.
Callaway Energy Center refueling and maintenance costs increased $28 million because of the amortization of those costs, beginning in
January 2021, which were previously deferred as a regulatory asset, pursuant to the MoPSC’s February 2020 order.
Recoverable customer energy-efficiency program costs increased $16 million because of increased participation in the MEEIA programs
in 2021.
Technology-related expenditures increased $11 million, primarily because of cloud computing licensing costs and software maintenance.
Transmission and distribution expenditures increased $6 million, primarily because of increased storm costs.
The cash surrender value of company-owned life insurance decreased $6 million because of less favorable market returns in 2021,
compared with 2020.
51
The following items partially offset the above increases in other operations and maintenance expenses between years:
•
•
•
•
Labor and benefit costs decreased $12 million, primarily because of higher capitalization of costs resulting from increased construction
activity.
Amortization of regulatory balances, primarily solar rebate costs pursuant to the MoPSC’s March 2020 electric rate order and RESRAM
deferrals, decreased $11 million.
Expenses decreased $10 million because of increased bad debt costs in 2020 largely due to the COVID-19 pandemic.
Deferral to a regulatory asset of $5 million of certain costs incurred in 2020 related to the COVID-19 pandemic, pursuant to the MoPSC’s
March 2021 orders.
Ameren Illinois
Other operations and maintenance expenses increased $45 million at Ameren Illinois in 2021, compared with 2020, as discussed below.
Other operations and maintenance expenses were comparable at Ameren Illinois Transmission between 2021 and 2020.
Ameren Illinois Electric Distribution
The $28 million increase in Ameren Illinois Electric Distribution’s other operations and maintenance expenses in 2021, compared with
2020, was primarily due to the following items:
•
•
•
•
•
Amortization of regulatory assets associated with customer energy-efficiency program investments under formula ratemaking increased
$8 million.
Technology-related expenditures increased $8 million, primarily because of cloud computing licensing costs and software maintenance.
Increased bad debt expense of $7 million, primarily because of increased recovery of bad debt costs allowed by the ICC.
Expenses increased $5 million because of the true-up of vegetation management expenditures consistent with the December 2021 ICC
electric distribution service rate order.
The cash surrender value of company-owned life insurance decreased $3 million because of less favorable market returns in 2021
compared with 2020.
The above increases were partially offset by a $7 million reduction in environmental remediation rider costs, which resulted from a
decline in the required remediation efforts.
Ameren Illinois Natural Gas
Other operations and maintenance expenses at Ameren Illinois Natural Gas increased $15 million in 2021, compared with 2020, largely
due to an $8 million increase in infrastructure maintenance and compliance activity. Other operations and maintenance expenses also
increased $5 million because of the absence in 2021 of miscellaneous amortizations of regulatory liabilities, which lowered expenses in 2020.
These increases were partially offset by $3 million reduction in recoverable bad debt expense and environmental remediation rider costs
consistent with the amounts allowed by the ICC.
52
Depreciation and Amortization
Total by Segment(a)
$1,200
$1,146
$111
$90
$309
$1,075
$98
$81
$288
$632
$604
)
s
n
o
i
l
l
i
M
(
$
$1,000
$800
$600
$400
$200
$0
Increase by Segment
Overall Ameren Increase of $71 Million
$30
$28
$21
)
s
n
o
i
l
l
i
M
(
$
$20
$10
$0
$13
$9
$—
(a)
Includes other/intersegment eliminations of $4 million and $4 million in 2021 and 2020, respectively.
2021
2020
Ameren Missouri
Ameren Illinois Natural Gas
Other/Intersegment Eliminations
Ameren Illinois Electric Distribution
Ameren Transmission
The $71 million, $28 million, and $38 million increase in depreciation and amortization expenses in 2021, compared with 2020, at
Ameren, Ameren Missouri, and Ameren Illinois, respectively, was primarily due to additional property, plant, and equipment across their
respective segments. Ameren’s and Ameren Missouri’s depreciation and amortization expenses reflected a deferral to a regulatory asset of
depreciation and amortization expenses pursuant to the PISA and the RESRAM. The PISA and RESRAM deferrals of depreciation and
amortization expenses was $98 million and $27 million in 2021 and 2020, respectively.
53
Taxes Other Than Income Taxes
Total by Segment(a)
Increase by Segment
Overall Ameren Increase of $29 Million
$512
$73
$76
$343
$483
$65
$72
$328
)
s
n
o
i
l
l
i
M
(
$
$550
$440
$330
$220
$110
$0
$16
$15
)
s
n
o
i
l
l
i
M
(
$
$12
$8
$4
$0
$8
$4
$2
$—
2021
2020
(a)
Includes $8 million and $8 million at Ameren Transmission in 2021 and 2020, respectively, and other/intersegment eliminations of $12 million and $10 million in 2021 and
2020, respectively.
Ameren Missouri
Ameren Illinois Natural Gas
Other/Intersegment Eliminations
Ameren Illinois Electric Distribution
Ameren Transmission
Taxes other than income taxes increased $29 million at Ameren in 2021, compared with 2020, primarily because of increased excise
taxes of $11 million and $7 million at Ameren Missouri and Ameren Illinois Natural Gas, respectively, resulting from increased sales.
Additionally, taxes other than income taxes increased $5 million, compared with the year-ago period, at Ameren Missouri because of
increased property taxes, primarily resulting from the addition of wind generation properties and higher assessed values, partially offset by
lower natural gas property taxes. Taxes other than income taxes also increased $3 million at Ameren Illinois Electric Distribution because of
increased excise taxes, resulting from decreased tax credits compared with 2020.
See Excise Taxes in Note 15 – Supplemental Information under Part II, Item 8, of this report for additional information.
54
Other Income, Net
Total by Segment
Increase by Segment
Overall Ameren Increase of $51 Million
$202
$36
$15
$13
$39
$99
$151
$16
$13
$13
$33
$76
)
s
n
o
i
l
l
i
M
(
$
$210
$180
$150
$120
$90
$60
$30
$0
)
s
n
o
i
l
l
i
M
(
$
$25
$20
$15
$10
$5
$0
$23
$20
$6
$2
$—
2021
2020
Ameren Missouri
Ameren Illinois Natural Gas
Other/Intersegment Eliminations
Ameren Illinois Electric Distribution
Ameren Transmission
Other income, net, increased $51 million at Ameren in 2021, compared with 2020, primarily because of the following items:
•
•
•
•
The non-service cost component of net periodic benefit income increased $20 million, primarily because of increases of $9 million,
$5 million, and $4 million for Ameren Missouri, Ameren Illinois Electric Distribution, and activity not reported as part of a segment,
respectively.
Income from equity method investments to advance clean and resilient energy technologies increased $9 million for activity not reported
as part of a segment.
Charitable donations were $8 million lower at Ameren Missouri due to the absence of charitable donations made in the year-ago period
pursuant to the MoPSC’s March 2020 electric rate order. Charitable donations were $7 million lower for activity not reported as part of a
segment due to a return to normal levels at Ameren (parent).
The equity portion of allowance for funds used during construction increased $7 million at Ameren Missouri due to higher construction
work in progress balances during 2021.
See Note 6 – Other Income, Net under Part II, Item 8, of this report for additional information. See Note 10 – Retirement Benefits under
Part II, Item 8, of this report for more information on the non-service cost components of net periodic benefit income.
55
Increase (Decrease) by Segment
Overall Ameren Decrease of $36 Million
$9
$5
$2
$1
Interest Charges
Total by Segment
$419
$38
$78
$41
$72
$190
$383
$47
$83
$42
$74
$137
$11
$0
$(11)
$(22)
$(33)
$(44)
)
s
n
o
i
l
l
i
M
(
$
)
s
n
o
i
l
l
i
M
(
$
$450
$360
$270
$180
$90
$0
2021
2020
$(55)
$(53)
Ameren Missouri
Ameren Illinois Natural Gas
Other/Intersegment Eliminations
Ameren Illinois Electric Distribution
Ameren Transmission
Interest charges decreased $36 million and $53 million in 2021, compared with 2020, at Ameren and Ameren Missouri, respectively,
primarily because of increased deferrals to a regulatory asset of interest charges pursuant to the PISA and RESRAM. The PISA and
RESRAM deferrals of interest charges were $82 million and $12 million in 2021 and 2020, respectively. Interest charges increased $9 million
at Ameren Illinois in 2021, compared with 2020, as discussed below.
The following items partially offset the above decreases in interest charges in 2021, compared with 2020:
•
•
•
Issuances of long-term debt at Ameren Missouri in October 2020 and June 2021 collectively increased interest charges by $11 million
and $6 million, respectively.
Issuance of long-term debt at Ameren (parent) in April 2020 increased interest charges by $7 million.
Interest charges at Ameren Illinois Transmission increased by $5 million as a result of the Ameren Illinois issuances of long-term debt in
November 2020 and June 2021 and a March 2021 FERC order, primarily related to the historical recovery of materials and supplies
inventories.
56
Income Taxes
The following table presents effective income tax rates for the years ended December 31, 2021 and 2020:
Ameren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois Electric Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois Natural Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois Transmission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Transmission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2021
14%
1%
25%
24%
27%
25%
26%
2020
15%
7%
24%
22%
26%
25%
26%
See Note 12 – Income Taxes under Part II, Item 8, of this report for information regarding reconciliations of effective income tax rates for
Ameren, Ameren Missouri, and Ameren Illinois.
The effective income tax rate was higher at Ameren Illinois Electric Distribution in 2021, compared with 2020, primarily because of
decreased tax benefits from certain depreciation differences on property-related items largely attributable to lower amortization of excess
deferred taxes.
LIQUIDITY AND CAPITAL RESOURCES
Collections from our tariff-based revenues are our principal source of cash provided by operating activities. A diversified retail customer
mix, primarily consisting of rate-regulated residential, commercial, and industrial customers, provides us with a reasonably predictable source
of cash. In addition to using cash provided by operating activities, we use available cash, drawings under committed credit agreements,
commercial paper issuances, and/or, in the case of Ameren Missouri and Ameren Illinois, short-term affiliate borrowings to support normal
operations and temporary capital requirements. We may reduce our short-term borrowings with cash provided by operations or, at our
discretion, with long-term borrowings, or, in the case of Ameren Missouri and Ameren Illinois, with capital contributions from Ameren (parent).
In addition, to support a portion of its fuel requirements for generation, Ameren Missouri has entered into various long-term commitments to
meet these requirements. 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 $1.6 billion, $0.7 billion, and, $0.8 billion, respectively, which include $0.7 billion, $0.3 billion, and, $0.4 billion,
respectively, in 2022.
We expect to make significant capital expenditures over the next five years, as discussed in the Capital Expenditures sections below,
supported by a combination of long-term debt and equity, as we invest in our electric and natural gas utility infrastructure to support overall
system reliability, grid modernization, renewable energy target requirements, environmental compliance, and other improvements. For
additional information about our long-term debt outstanding, including maturities due within one year, and the applicable interest rates, see
Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of this report. As part of its funding plan for capital expenditures,
Ameren is using newly issued shares of common stock, rather than market-purchased shares, to satisfy requirements under the DRPlus and
employee benefit plans and expects to continue to do so through at least 2026. Ameren expects these issuances to provide equity of about
$100 million annually. In addition, in 2021, Ameren established an ATM program under which Ameren may offer and sell from time to time up
to $750 million of its common stock, which includes the ability to enter into forward sales agreements, subject to market conditions and other
factors. During 2021, Ameren issued a total of 3.4 million shares of common stock and received aggregate proceeds of $261 million under
the ATM program and the settlement of the remaining portion of the August 2019 forward sale agreement. Ameren plans to issue
approximately $300 million of equity each year from 2022 to 2026 in addition to issuances under the DRPlus and employee benefit plans.
Ameren expects its equity to total capitalization to be about 45% through December 31, 2026, with the long-term intent to support solid
investment-grade credit ratings. See Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of this report for additional
information on the ATM program, the 2021 settlement of the remaining portion of the August 2019 forward sale agreement, and the
September 2021, December 2021, and January 2022 forward sale agreements.
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, 2021, for Ameren, Ameren Missouri, and Ameren Illinois. With the credit capacity available under the Credit
Agreements, and cash and cash equivalents, Ameren (parent), Ameren Missouri, and Ameren Illinois, collectively had net available liquidity
of $1.8 billion at December 31, 2021. See Credit Facility Borrowings and Liquidity and Long-term Debt and Equity below for additional
information.
57
The following table presents net cash provided by (used in) operating, investing, and financing activities for the years ended
December 31, 2021 and 2020:
Net Cash Provided By
Operating Activities
2020
Variance
2021
Net Cash Used In
Investing Activities
2020
Variance
2021
Net Cash Provided By
Financing Activities
2020
Variance
2021
Ameren . . . . . . . . . . . . . . . . . . . . . . . . $
Ameren Missouri . . . . . . . . . . . . . . . . .
Ameren Illinois . . . . . . . . . . . . . . . . . . .
1,661
$
1,727
$
(66) $
(3,528) $
(3,329) $
(199) $
1,721
$
1,727
$
929
662
911
679
18
(17)
(1,922)
(1,437)
(1,904)
(1,444)
(18)
7
856
761
1,099
787
(6)
(243)
(26)
Cash Flows from Operating Activities
Our cash provided by operating activities is affected by fluctuations of trade accounts receivable, inventories, and accounts and wages
payable, among other things, as well as the unique regulatory environment for each of our businesses. Substantially all expenditures related
to fuel, purchased power, and natural gas purchased for resale are recovered from customers through rate adjustment mechanisms, which
may be adjusted without a traditional regulatory rate review, subject to prudence reviews. Similar regulatory mechanisms exist for certain
other operating expenses that can also affect the timing of cash provided by operating activities. The timing of cash payments for costs
recoverable under our regulatory mechanisms differs from the recovery period of those costs. Additionally, the seasonality of our electric and
natural gas businesses, primarily caused by seasonal customer rates and changes in customer demand due to weather, such as increased
demand resulting from the extremely cold weather in mid-February 2021, significantly affects the amount and timing of our cash provided by
operating activities. See Note 2 – Rate and Regulatory Matters under Part II, Item 8, of this report for more information about our regulatory
frameworks.
Ameren
Ameren’s cash provided by operating activities decreased $66 million in 2021, compared with 2020. The following items contributed to
the decrease:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
A $62 million increase in payroll tax payments primarily due to the employer portion of Social Security taxes as a result of a payment
deferral allowed in 2020 under the Coronavirus Aid, Relief, and Economic Security Act. Half of the 2020 deferral was paid at the end of
2021 and the remaining half will be paid at the end of 2022.
A $49 million increase in the cost of natural gas held in storage, primarily at Ameren Illinois, because of higher prices.
A $44 million decrease in net collateral activity with counterparties, primarily resulting from changes in the market prices of power,
natural gas, and other fuels.
A $43 million increase in interest payments, primarily due to an increase in the average outstanding debt.
An $18 million increase in energy center maintenance costs, other than those associated with the Callaway refueling and maintenance
outage, at Ameren Missouri, primarily because of costs related to new wind generation facilities.
A $15 million increase in major storm restoration costs at Ameren Illinois, primarily due to a January 2021 storm.
An $8 million increase in pension and postretirement benefit plan contributions.
A $6 million increase in payments to contractors at Ameren Illinois, primarily related to distribution expenditures for increased natural gas
infrastructure maintenance and compliance costs.
A $6 million increase in property tax payments at Ameren Missouri due to higher assessed property tax values.
The following items partially offset the decrease in Ameren’s cash from operating activities between periods:
A $74 million increase due to the net impact of customer collections, the effect of riders, and increased commodity costs. An increase at
Ameren Missouri, as discussed below, and increased customer collections at ATXI were partially offset by a decrease at Ameren Illinois,
as discussed below.
A $30 million decrease in payments for nuclear refueling and maintenance outages at Ameren Missouri’s Callaway Energy Center.
There was no scheduled refueling and maintenance outage in 2021.
A $21 million decrease in payments to settle ARO liabilities, primarily related to the closure of Ameren Missouri’s CCR storage facilities.
A $21 million increase, primarily resulting from reduced purchases of materials and supplies at Ameren Illinois to support operations in
2021 as levels were increased in 2020 to mitigate against potential supply disruptions associated with the COVID-19 pandemic.
A $21 million increase resulting from a reduction in payments for certain cloud computing arrangements.
A $14 million increase resulting from income tax refunds of $1 million in 2021, compared with income tax payments of $13 million in
2020, primarily from lower taxable income and the timing of payments in 2021.
A $12 million decrease in payments related to charitable donations.
58
Ameren Missouri
Ameren Missouri’s cash provided by operating activities increased $18 million in 2021, compared with 2020. The following items
contributed to the increase:
•
•
•
•
•
•
•
•
•
•
An $86 million increase due to the net impact of customer collections, the effect of riders, and increased commodity costs. The increase
resulted from increased retail sales and a net increase attributable to riders, excluding the PGA. These increases were partially offset by
increased purchases for natural gas for resale and purchased power as a result of the significant increase in customer demand and
increased prices for natural gas and electricity experienced in mid-February 2021 due to extremely cold weather, which also contributed
to a net decrease under the PGA, and a decrease in collections of outstanding account receivables. See Outlook below for additional
information about the extension of the collection period for the PGA related to the extremely cold weather in mid-February 2021.
A $30 million decrease in payments for nuclear refueling and maintenance outages at the Callaway Energy Center. There was no
scheduled refueling and maintenance outage in 2021.
A $22 million decrease in payments to settle ARO liabilities, primarily related to the closure of CCR storage facilities.
An $11 million increase resulting from a reduction in payments for certain cloud computing arrangements.
The following items partially offset the increase in Ameren Missouri’s cash from operating activities between periods:
A $45 million decrease in net collateral activity with counterparties, primarily resulting from changes in the market prices of power,
natural gas, and other fuels.
A $28 million increase in payroll tax payments primarily due to the employer portion of Social Security taxes as a result of a payment
deferral allowed in 2020 under the Coronavirus Aid, Relief, and Economic Security Act. Half of the 2020 deferral was paid at the end of
2021 and the remaining half will be paid at the end of 2022.
An $18 million increase in energy center maintenance costs, other than those associated with the Callaway refueling and maintenance
outage, primarily because of costs related to new wind generation facilities.
A $15 million increase in interest payments, primarily due to an increase in the average outstanding debt.
A $6 million increase in property tax payments due to higher assessed property tax values.
A $5 million increase in pension and postretirement benefit plan contributions.
Ameren Illinois
Ameren Illinois’ cash provided by operating activities decreased $17 million in 2021, compared with 2020. The following items
contributed to the decrease:
•
•
•
•
•
•
•
•
•
A $45 million increase in the cost of natural gas held in storage because of higher prices.
A $27 million decrease due to the net impact of commodity costs, the effect of riders, and customer collections. The decrease resulted
from increased purchases for natural gas for resale and purchased power as a result of the significant increase in customer demand and
increased prices for natural gas and electricity experienced in mid-February 2021 due to extremely cold weather, which also contributed
to a net decrease under the PGA, and a net decrease attributable to other riders. The decrease from riders was partially offset by
increased retail sales; the effect of the phase-in of collection activities beginning in April 2021, which had been suspended for most of
2020; increased customer collections resulting from base rate increases pursuant to the January 2021 natural gas rate order and due to
electric transmission rate base growth; and state funding received for customer billing assistance. See Outlook below for additional
information about the extension of the collection period for the PGA related to the extremely cold weather in mid-February 2021.
A $21 million increase in payroll tax payments primarily due to the employer portion of Social Security taxes as a result of a payment
deferral allowed in 2020 under the Coronavirus Aid, Relief, and Economic Security Act. Half of the 2020 deferral was paid at the end of
2021 and the remaining half will be paid at the end of 2022.
A $15 million increase in major storm restoration costs, primarily due to a January 2021 storm.
An $11 million increase in interest payments, primarily due to an increase in the average outstanding debt.
A $6 million increase in payments to contractors primarily related to distribution expenditures for increased natural gas infrastructure
maintenance and compliance costs.
The following items partially offset the decrease in Ameren Illinois’ cash from operating activities between periods:
An $82 million increase resulting from income tax refunds of $41 million in 2021, compared with income tax payments of $41 million in
2020, from Ameren (parent) pursuant to the tax allocation agreement, primarily from lower taxable income and the timing of payments in
2021.
A $21 million increase, primarily resulting from reduced purchases of materials and supplies to support operations in 2021 as levels
were increased in 2020 to mitigate against potential supply disruptions associated with the COVID-19 pandemic.
A $10 million increase resulting from a reduction in payments for certain cloud computing arrangements.
59
Cash Flows from Investing Activities
Ameren’s cash used in investing activities increased $199 million during 2021, compared with 2020, primarily as a result of a
$246 million increase in capital expenditures, net of a decrease in wind generation expenditures. Increased capital expenditures at Ameren
Missouri were partially offset by decreased expenditures at Ameren Illinois and ATXI. See discussion of changes at Ameren Missouri and
Ameren Illinois below. ATXI’s capital expenditures decreased $66 million, primarily as a result of placing the ninth and final line segment of
the Illinois Rivers transmission line in service in December 2020. Ameren’s increase in capital expenditures was partially offset by a
$28 million decrease in net investment activity in the nuclear decommissioning trust fund at Ameren Missouri and a $22 million decrease due
to the timing of nuclear fuel expenditures.
Ameren Missouri’s cash used in investing activities increased $18 million during 2021, compared with 2020, primarily as a result of a
$349 million increase in capital expenditures, primarily related to electric delivery infrastructure upgrades and electric transmission system
reliability projects partially offset by a decrease in wind generation expenditures. The increase in capital expenditures was partially offset by a
$278 million decrease related to money pool advances activity, a $28 million decrease in net investment activity in the nuclear
decommissioning trust fund, and a $22 million decrease due to the timing of nuclear fuel expenditures.
Ameren Illinois’ cash used in investing activities decreased $7 million during 2021, compared with 2020, due to decreased capital
expenditures, primarily related to electric transmission system reliability projects and natural gas infrastructure, partially offset by electric
delivery infrastructure upgrades.
Capital Expenditures
The following charts present our capital expenditures for the years ended December 31, 2021 and 2020:
2021 – Total Ameren $3,479(a)
2020 – Total Ameren $3,233(a)
$41
$575
$278
$579
$113
$603
$2,015
$301
$1,666
$543
Ameren Missouri(b)
Ameren Illinois Natural Gas
ATXI and other electric transmission subsidiaries
Ameren Illinois Electric Distribution
Ameren Illinois Transmission
(a)
(b)
Includes Other capital expenditures of $(9) million and $7 million for the years ended December 31, 2021 and 2020, respectively, which includes amounts for the
elimination of intercompany transfers.
Ameren Missouri’s capital expenditures include $525 million and $564 million for wind generation expenditures for the years ended December 31, 2021 and 2020,
respectively.
Ameren’s 2021 capital expenditures consisted of expenditures made by its subsidiaries, including ATXI and other electric transmission
subsidiaries, which spent $41 million. Of the $278 million in capital expenditures spent by Ameren Illinois Natural Gas during 2021,
$170 million related to natural gas projects eligible for QIP recovery. In addition, Ameren Missouri expenditures included $525 million for wind
generation, primarily for the acquisition of the Atchison Renewable Energy Center. In both years, other capital expenditures were made
principally to maintain, upgrade, and improve the reliability of the transmission and distribution systems of Ameren Missouri and Ameren
Illinois by investing in substation upgrades, energy center projects, and smart-grid technology. Additionally, the Ameren Companies invested
60
in various software projects. As of December 31, 2021, Ameren Illinois exceeded the minimum capital spending levels required pursuant to
IEIMA.
Ameren’s 2020 capital expenditures consisted of expenditures made by its subsidiaries, including ATXI and other electric transmission
subsidiaries, which spent $113 million primarily on the Illinois Rivers transmission line. Of the $301 million in capital expenditures spent by
Ameren Illinois Natural Gas during 2020, $189 million related to natural gas projects eligible for QIP recovery. In addition, Ameren Missouri
expenditures included $564 million for the acquisition of the High Prairie Renewable Energy Center.
The following table presents Ameren’s estimate of capital expenditures that will be incurred from 2022 through 2026, including
construction expenditures, allowance for funds used during construction, and expenditures for compliance with existing environmental
regulations:
Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Ameren Illinois Electric Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois Natural Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois Transmission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ATXI and other electric transmission subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2022
2023 – 2026
1,690
$
580
370
650
85
5
3,380
$
6,805 – $
2,405 –
1,320 –
2,580 –
105 –
20 –
13,235 – $
7,520
2,660
1,455
2,855
115
20
14,625
Total
8,495 – $
2,985 –
1,690 –
3,230 –
190 –
25 –
16,615 – $
$
$
9,210
3,240
1,825
3,505
200
25
18,005
Ameren Missouri’s estimated capital expenditures include transmission, distribution, grid modernization, and generation-related
investments, as well as expenditures for compliance with environmental regulations. Capital expenditures related to coal-fired generation of
approximately $0.7 billion are included in Ameren Missouri’s estimated capital expenditures. Ameren Illinois’ estimated capital expenditures
are primarily for electric and natural gas transmission and distribution-related investments, including capital expenditures to modernize its
electric and gas distribution systems. These planned investments are based on the assumption of continued constructive regulatory
frameworks, including an assumption that Ameren Missouri requests and receives MoPSC approval of an extension of the PISA from
December 2023 to December 2028. Ameren’s and Ameren Missouri’s estimated capital expenditures exclude renewable generation
investment opportunities of 1,200 MWs by 2026, which are included in Ameren Missouri’s 2020 IRP, and additional investment opportunities
that may be approved by the MISO to address reliability concerns in connection with the planned accelerated retirement of the Rush Island
Energy Center.
In April 2021, the MISO issued a report outlining a preliminary long-range transmission planning roadmap of projects through 2039,
which considers the rapidly changing generation mix within MISO resulting from significant additions of renewable generation, actual and
expected generation plant closures, and state mandates or goals for clean energy or carbon emissions reductions. In February 2022, the
MISO updated a list of projects under consideration for the first phase of the roadmap, and is expected to approve certain projects for the first
phase by mid-2022. Expenditures that result from the MISO long-range transmission planning roadmap may cause adjustments to our
estimated 2022 through 2026 capital expenditures.
Ameren Missouri continually reviews its generation portfolio and expected power needs. As a result, Ameren Missouri could modify its
plan for generation capacity, the type of generation asset technology that will be employed, and whether capacity or power may be
purchased, among other changes. Additionally, we continually review the reliability of our transmission and distribution systems, expected
capacity needs, and opportunities for transmission investments within and outside our service territories. 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. Any
changes in future generation, transmission, or distribution needs could result in significant changes in capital expenditures or losses, which
could be material. Compliance with environmental regulations could also have significant impacts on the level of capital expenditures.
Environmental Capital Expenditures
Ameren Missouri will continue to incur costs to comply with federal and state regulations, including those requiring the reduction of SO2,
NOx, and mercury emissions from its coal-fired energy centers. See Note 14 – Commitments and Contingencies under Part II, Item 8, of this
report for a discussion of existing and proposed environmental laws that affect, or may affect, our facilities and capital expenditures to comply
with such laws.
Cash Flows from Financing Activities
Cash provided by, or used in, financing activities is a result of our financing needs, which depend on the level of cash provided by
operating activities, the level of cash used in investing activities, the level of dividends, and our long-term debt maturities, among other things.
61
Ameren’s cash provided by consolidated financing activities decreased $6 million during 2021, compared with 2020. During 2021,
Ameren utilized net proceeds of $1,997 million from the issuance of long-term debt for general corporate purposes, including to repay then-
outstanding short-term debt, including short-term debt incurred in connection with the increased purchases for natural gas for resale and
purchased power costs discussed above, and to fund, in part, investing activities. In 2021, Ameren received $55 million from net commercial
paper issuances. In addition, Ameren received aggregate cash proceeds of $308 million from the issuance of common stock under the ATM
program, the DRPlus, and the 401(k) plan and the settlement of the remaining portion of the August 2019 forward sale agreement. These
proceeds, along with cash on hand, were used to fund a portion of Ameren Missouri’s wind generation investments and to fund, in part, other
investing activities. In comparison, in 2020, Ameren utilized net proceeds of $2,183 million from the issuance of long-term debt for general
corporate purposes, including to repay then-outstanding short-term debt, including short-term debt incurred in connection with the repayment
at maturity of long-term debt, to partially finance the acquisition of two wind generation facilities, and to repay other long-term debt. In
addition, in 2020, Ameren received cash proceeds of $425 million from the partial settlement of a forward sale agreement of common stock
that were used to fund a portion of Ameren Missouri’s wind generation investments. Collectively, in 2020, Ameren repaid long-term debt of
$442 million, received $50 million from net commercial paper issuances, and used cash provided by financing activities to fund, in part,
investing activities. During 2021, Ameren paid common stock dividends of $565 million, compared with $494 million in dividend payments in
2020.
Ameren Missouri’s cash provided by financing activities decreased $243 million during 2021, compared with 2020. During 2021, Ameren
Missouri utilized net proceeds of $524 million from the issuance of long-term debt to repay then-outstanding short-term debt, including short-
term debt incurred in connection with the increased purchases for natural gas for resale and purchased power costs discussed above.
Additionally, the proceeds from the issuance of long-term debt and $207 million of capital contributions from Ameren (parent) were used to
fund, in part, investing activities. In 2021, Ameren Missouri also received $165 million from commercial paper issuances. In comparison, in
2020, Ameren Missouri utilized cash on hand and net proceeds of $1,012 million from the issuance of long-term debt to repay then-
outstanding short-term debt, including short-term debt incurred in connection with the repayment of maturity of long-term debt, and to partially
finance the acquisition of two wind generation facilities. In 2020, Ameren Missouri also received $491 million in capital contributions from
Ameren (parent). Collectively, in 2020, Ameren Missouri repaid long-term debt of $92 million, repaid net short-term debt of $234 million, and
used cash provided by financing activities to fund, in part, investing activities. During 2021, Ameren Missouri paid common stock dividends of
$24 million, compared with $66 million in dividend payments in 2020.
Ameren Illinois’ cash provided by financing activities decreased $26 million during 2021, compared with 2020. During 2021, Ameren
Illinois utilized net proceeds of $449 million from the issuance of long-term debt to repay then-outstanding short-term debt, including short-
term debt incurred in connection with the increased purchases for natural gas for resale and purchased power costs discussed above.
Additionally, the proceeds from the issuance of long-term debt and $262 million of capital contributions from Ameren (parent) were used to
fund, in part, investing activities. In 2021, Ameren Illinois also received $103 million from commercial paper issuances. In addition, Ameren
Illinois repaid $19 million of money pool borrowings and redeemed $13 million of preferred stock in 2021. In comparison, in 2020, Ameren
Illinois received $464 million in capital contributions from Ameren (parent). In addition, in 2020, Ameren Illinois utilized net proceeds of
$373 million from the issuance of long-term debt to repay then-outstanding short-term debt. Collectively, in 2020 Ameren Illinois repaid net
short-term debt of $53 million, borrowed $19 million from the money pool, and used cash provided by financing activities to fund, in part,
investing activities.
Credit Facility Borrowings and Liquidity
The liquidity needs of the Ameren Companies are typically supported through the use of available cash, drawings under committed
credit agreements, commercial paper issuances, and/or, in the case of Ameren Missouri and Ameren Illinois, short-term affiliate borrowings.
See Note 4 – Short-term Debt and Liquidity under Part II, Item 8, of this report for additional information on credit agreements, commercial
paper issuances, Ameren’s money pool arrangements and related borrowings, and relevant interest rates.
62
The following table presents Ameren’s consolidated net available liquidity as of December 31, 2021:
Available at
December 31, 2021
Ameren (parent) and Ameren Missouri(a):
Missouri Credit Agreement – borrowing capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Ameren (parent) commercial paper outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Ameren Missouri commercial paper outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
Less: Letters of credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Missouri Credit Agreement – subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren (parent) and Ameren Illinois(b):
Illinois Credit Agreement – borrowing capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Ameren (parent) commercial paper outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Ameren Illinois commercial paper outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Illinois Credit Agreement – subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net available liquidity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
$
1,200
178
165
2
855
1,100
99
103
898
1,753
8
1,761
(a) The maximum aggregate amount available to Ameren (parent) and Ameren Missouri under the Missouri Credit Agreement is $900 million and $850 million, respectively.
See Note 4 – Short-term Debt and Liquidity under Part II, Item 8, of this report for further discussion of the Credit Agreements.
(b) The maximum aggregate amount available to Ameren (parent) and Ameren Illinois under the Illinois Credit Agreement is $500 million and $800 million, respectively. See
Note 4 – Short-term Debt and Liquidity under Part II, Item 8, of this report for further discussion of the Credit Agreements.
In December 2021, the Credit Agreements, which were scheduled to mature in December 2024, were extended and now mature in
December 2025. The Credit Agreements provide $2.3 billion of credit through December 2025. 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, 2021, Ameren
(parent), Ameren Missouri, and Ameren Illinois each issued commercial paper. Borrowings under the Credit Agreements and commercial
paper issuances are based upon available interest rates at that time of the borrowing or issuance.
Ameren has a money pool agreement with and among its utility subsidiaries to coordinate and to provide for certain short-term cash and
working capital requirements. As short-term capital needs arise, and based on availability of funding sources, Ameren Missouri and Ameren
Illinois will access funds from the utility money pool, the Credit Agreements, or the commercial paper programs depending on which option
has the lowest interest rates.
The issuance of short-term debt securities by Ameren’s utility subsidiaries is subject to FERC approval under the Federal Power Act. In
2020, the FERC issued orders authorizing Ameren Missouri and Ameren Illinois to each issue up to $1 billion of short-term debt securities
through March 2022 and September 2022, respectively. In July 2021, the FERC issued an order authorizing ATXI to issue up to $300 million
of short-term debt securities through July 2023.
The Ameren Companies continually evaluate the adequacy and appropriateness of their liquidity arrangements for changing business
conditions. When business conditions warrant, changes may be made to existing credit agreements or to other short-term borrowing
arrangements, or other arrangements may be made.
63
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, 2021 and 2020. For additional
information related to the terms and uses of these issuances and effective registration statements, and Ameren’s forward sale agreements
relating to common stock, see Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of this report. For information on capital
contributions received by Ameren Missouri and Ameren Illinois from Ameren (parent), see Note 13 – Related-party Transactions under Part II,
Item 8, of this report.
Month Issued, Redeemed,
Repurchased, or Matured
2021
2020
Issuances of Long-term Debt
Ameren:
1.75% Senior unsecured notes due 2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.95% Senior unsecured notes due 2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.50% Senior unsecured notes due 2031 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Missouri:
2.15% First mortgage bonds due 2032 (green bonds) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.95% First mortgage bonds due 2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.625% First mortgage bonds due 2051 (green bonds) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois:
2.90% First mortgage bonds due 2051 (green bonds) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.375% First mortgage bonds due 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.55% First mortgage bonds due 2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ATXI:(a)
2.45% Senior unsecured notes due 2036 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Ameren long-term debt issuances
Issuances of Common Stock
Ameren:
DRPlus and 401(k)(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
August 2019 forward sale agreement(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ATM program(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Ameren common stock issuances(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Maturities of Long-term Debt
Ameren:
2.70% Senior unsecured notes due 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Missouri:
5.00% Senior secured notes due 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
City of Bowling Green financing obligation (Peno Creek CT) . . . . . . . . . . . . . . . . . . . . . . . . .
Total long-term debt redemptions, repurchases, and maturities . . . . . . . . . . . . . . . . . . . . . . . . . .
Redemptions of Preferred Stock
Ameren Illinois:
March
November
April
June
March
October
June
June
November
November
Various
Various
Various
October
February
December
6.625% Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.75% Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March
March
Total Ameren Illinois preferred stock redemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
$
$
$
$
$
$
$
450
499
—
524
—
—
349
100
—
75
1,997
47
113
148
308
—
—
8
8
12
1
13
$
$
$
$
$
$
$
$
—
—
798
—
465
547
—
373
—
2,183
51
425
—
476
350
85
7
442
—
—
—
(a) Pursuant to a note purchase agreement, ATXI agreed to issue $95 million principal amount of 2.96% senior unsecured notes due 2052, see Note 5 – Long-term Debt and
Equity Financings under Part II, Item 8, of this report for further information.
(b) Ameren issued a total of 0.5 million and 0.7 million shares of common stock under its DRPlus and 401(k) plan in 2021 and 2020, respectively.
(c) Ameren issued 1.6 million shares of common stock in February 2021 to settle the remainder of the August 2019 forward sale agreement. Ameren issued 5.9 million shares
of common stock pursuant to a partial settlement of the August 2019 forward sale agreement in December 2020.
(d) Ameren issued 1.8 million shares of common stock under the ATM program in 2021.
(e) Excludes 0.5 million and 0.5 million shares of common stock valued at $33 million and $38 million issued for no cash consideration in connection with stock-based
compensation in 2021 and 2020, respectively
The Ameren Companies may sell securities registered under their effective registration statements if market conditions and capital
requirements warrant such sales. Any offer and sale will be made only by means of a prospectus that meets the requirements of the
Securities Act of 1933 and the rules and regulations thereunder.
64
Indebtedness Provisions and Other Covenants
At December 31, 2021, the Ameren Companies were in compliance with the provisions and covenants contained within their credit
agreements, indentures, and articles of incorporation, as applicable, and ATXI was in compliance with the provisions and covenants
contained in its note purchase agreements. See Note 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.
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. 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. 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.
Dividends
Ameren paid to its shareholders common stock dividends totaling $565 million, or $2.20 per share, in 2021 and $494 million, or $2.00
per share, in 2020. The amount and timing of dividends payable on Ameren’s common stock are within the sole discretion of Ameren’s board
of directors. Ameren’s board of directors has not set specific targets or payout parameters when declaring common stock dividends, but it
considers various factors, including Ameren’s overall payout ratio, payout ratios of our peers, projected cash flow and potential future cash
flow requirements, historical earnings and cash flow, projected earnings, impacts of regulatory orders or legislation, and other key business
considerations. Ameren expects its dividend payout ratio to be between 55% and 70% of earnings over the next few years. On February 11,
2022, the board of directors of Ameren declared a quarterly dividend on Ameren’s common stock of 59 cents per share, payable on
March 31, 2022, to shareholders of record on March 9, 2022.
Certain of our financial agreements and corporate organizational documents contain covenants and conditions that, among other things,
restrict the Ameren Companies’ payment of dividends in certain circumstances.
Ameren Illinois’ articles of incorporation require its dividend payments on common stock to be based on ratios of common stock to total
capitalization and other provisions with respect to certain operating expenses and accumulations of earned surplus. Additionally, Ameren has
committed to the FERC to maintain a minimum of 30% equity in the capital structure at Ameren Illinois.
Ameren Missouri and Ameren Illinois, as well as certain other nonregistrant Ameren subsidiaries, are subject to Section 305(a) of the
Federal Power Act, which makes it unlawful for any officer or director of a public utility, as defined in the Federal Power Act, to participate in
the making or paying of any dividend from any funds “properly included in capital account.” The FERC has consistently interpreted the
provision to allow dividends to be paid as long as (1) the source of the dividends is clearly disclosed, (2) the dividends are not excessive, and
(3) there is no self-dealing on the part of corporate officials. At a minimum, Ameren believes that dividends can be paid by its subsidiaries that
are public utilities from net income and from retained earnings. In addition, under Illinois law, Ameren Illinois and ATXI may not pay any
dividend on their respective stock unless, among other things, their respective earnings and earned surplus are sufficient to declare and pay
a dividend after provisions are made for reasonable and proper reserves, or unless Ameren Illinois or ATXI has specific authorization from
the ICC.
At December 31, 2021, 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 $3.8 billion.
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:
Ameren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ATXI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2021
2020
565
$
24
—
99
494
66
9
30
Ameren Missouri and Ameren Illinois each have issued preferred stock, which provide for cumulative dividends. Each company’s board
of directors considers the declaration of preferred stock dividends to shareholders of record on a certain date, stating the date on which the
dividend is payable and the amount to be paid. 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
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.
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Senior unsecured debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Missouri:
Issuer/corporate credit rating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Secured debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Senior unsecured debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois:
Issuer/corporate credit rating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Secured debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Senior unsecured debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ATXI:
Issuer credit rating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Senior unsecured debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Baa1
Baa1
P-2
Baa1
A2
Baa1
P-2
A3
A1
A3
P-2
A2
A2
BBB+
BBB
A-2
BBB+
A
Not Rated
A-2
BBB+
A
BBB+
A-2
Not Rated
Not Rated
A credit rating is not a recommendation to buy, sell, or hold securities. It should be evaluated independently of any other rating. Ratings
are subject to revision or withdrawal at any time by the rating organization.
Collateral Postings
Any weakening of our credit ratings may reduce access to capital and trigger additional collateral postings and prepayments. Such
changes may also increase the cost of borrowing, resulting in an adverse effect on earnings. Cash collateral postings and prepayments made
with external parties, including postings related to exchange-traded contracts, were $66 million for Ameren and Ameren Missouri and cash
collateral posted by external parties were $22 million for Ameren and Ameren Illinois at December 31, 2021. A sub-investment-grade issuer
or senior unsecured debt rating (below “Baa3” from Moody’s or below “BBB-” from S&P) at December 31, 2021, 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 $89 million, $61 million, and $28 million, respectively.
Changes in commodity prices could trigger additional collateral postings and prepayments. Based on credit ratings at December 31,
2021, if market prices were 15% higher or lower than December 31, 2021 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.
Environmental Matters
Our electric generation, transmission, and distribution and natural gas distribution and storage operations must comply with a variety of
statutes and regulations relating to the protection of the environment and human health and safety including permitting programs
implemented via federal, state, and local authorities. 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. 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. The individual or combined effects of existing and new environmental regulations could result in
significant capital expenditures, increased operating costs, or the closure or alteration of operations at some of Ameren Missouri’s energy
centers.
Additionally, international agreements could lead to future federal or state legislation or regulations. In 2015, the United Nations
Framework Convention on Climate Change reached consensus among approximately 190 nations on an agreement, known as the Paris
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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.
The Biden administration has announced a new 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. In addition, the Biden administration 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, we issue an
annual report in accordance with the Edison Electric Institute’s (EEI) and American Gas Association’s (AGA) ESG and sustainability-related
reporting program. We also issue a periodic climate risk report and a report on our management of CCR. Additionally, we have posted a Task
Force on Climate-related Financial Disclosures (TCFD) and Sustainability Accounting Standards Board (SASB) mapping of sustainability
data. The reports may be updated at any time. The information on Ameren’s website, including the reports and documents mentioned in this
paragraph, is not incorporated by reference into this report.
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 2022 and beyond. The continued effect of the COVID-19
pandemic on our results of operations, financial position, and liquidity in subsequent periods will depend on its severity and longevity, future
regulatory or legislative actions with respect thereto, and the resulting impact on business, economic, and capital market conditions. Although
restrictions on social activities and nonessential businesses implemented in our service territories in 2020 have been relaxed, additional
restrictions may be imposed in the future. We continue to assess the impacts the COVID-19 pandemic is having on our businesses, including
but not limited to impacts on our liquidity; demand for residential, commercial, and industrial electric and natural gas services; changes in
deferred payment arrangements for customers; bad debt expense; supply chain operations; the availability of our employees and contractors;
counterparty credit; capital construction; infrastructure operations and maintenance; and pension valuations. For additional information
regarding recent rate orders, lawsuits, and pending requests filed with state and federal regulatory commissions, including those discussed
below, see Note 2 – Rate and Regulatory Matters under Part II, Item 8, of this report.
Operations
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In 2021, our sales volumes, which have been, and continue to be, affected by the COVID-19 pandemic, among other things, increased
compared to 2020, excluding the estimated effects of weather and customer energy-efficiency programs. While total sales volume levels
were more comparable to pre-pandemic levels, there has been a shift in sales volumes by customer class, with an increase in residential
sales, and a decrease in commercial and industrial sales. We expect total weather-normalized sales to return to 2019 levels by
mid-2022 with the growth expected to be primarily over the second half of 2022. Because of their regulatory frameworks, Ameren Illinois’
and ATXI’s revenues are largely decoupled from changes in sales volumes. See the Results of Operations section above for additional
information on our accounts receivable balances and Ameren Illinois’ electric and natural gas bad debt riders. Additionally, see Note 2 –
Rate and Regulatory Matters under Part II, Item 8, of this report for information on Ameren Illinois’ reinstatement of customer
disconnection and late fee charges for non-payment, accounting authority orders issued by the MoPSC related to Ameren Missouri's
electric and natural gas services to allow Ameren Missouri to accumulate certain costs incurred, net of savings, and forgone customer
late fee revenues related to the COVID-19 pandemic, with such amounts approved for recovery by the MoPSC in the December 2021
electric and natural gas service rate orders, and orders issued by the ICC in a service disconnection moratorium proceeding, which
required Ameren Illinois to implement more flexible credit and collection practices and allowed for recovery of costs incurred related to
the COVID-19 pandemic and forgone late fees.
The PISA permits Ameren Missouri to defer and recover 85% of the depreciation expense and earn a return at the applicable WACC on
investments in certain property, plant, and equipment placed in service, and not included in base rates. The regulatory asset for
accumulated PISA deferrals also earns a return at the applicable WACC, with all approved PISA deferrals added to rate base
prospectively and recovered over a period of 20 years following a regulatory rate review. Additionally, under the RESRAM, Ameren
Missouri is permitted to recover the 15% of depreciation expense not recovered under the PISA, and earn a return at the applicable
WACC for investments in renewable generation plant placed in service to comply with Missouri’s renewable energy standard.
Accumulated RESRAM deferrals earn carrying costs at short-term interest rates. The PISA and the RESRAM mitigate the effects of
regulatory lag between regulatory rate reviews. Those investments not eligible for recovery under the PISA and the remaining 15% of
certain property, plant, and equipment placed in service, unless eligible for recovery under the RESRAM, remain subject to regulatory
lag. Ameren Missouri defers its cost of debt relating to PISA eligible investments as an offset to interest charges with the difference
between the applicable WACC and its cost of debt recognized in revenues when recovery of such deferrals is reflected in customer
rates. As a result of the PISA election, additional provisions of the law apply to Ameren Missouri, including limitations on electric
customer rate increases. Ameren Missouri does not expect to exceed these rate increase limitations in 2022. Both the rate increase
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limitation and the PISA are effective through December 2023, unless Ameren Missouri requests and the MoPSC approves an extension
through December 2028.
In 2018, the MoPSC issued an order approving Ameren Missouri’s MEEIA 2019 plan. The plan includes a portfolio of customer energy-
efficiency programs through December 2023 and low-income customer energy-efficiency programs through December 2024, along with
a rider. Ameren Missouri intends to invest approximately $360 million over the life of the plan, including $70 million in 2022 and
$75 million in 2023. The plan includes the continued use of the MEEIA rider, which allows Ameren Missouri to collect from, or refund to,
customers any difference in actual MEEIA program costs and related lost electric margins and the amounts collected from customers. 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. If the target goals are achieved for 2021 and 2022, additional revenues of
$24 million would be recognized in 2022, and, if target goals are achieved for 2023, additional revenues of $13 million would be
recognized in 2023.
In December 2021, the MoPSC issued an order in Ameren Missouri’s 2021 electric service regulatory rate review, resulting in an
increase of $220 million to Ameren Missouri’s annual revenue requirement for electric retail service. The order also changed annualized
depreciation, regulatory asset and liability amortization amounts, and the base level of expenses for trackers. On an annualized basis,
these changes reflect approximate increases in depreciation and amortization of $140 million and other operating and maintenance
expenses of $40 million. As a result of the order, all off-system sales resulting from the High Prairie Renewable and Atchison Renewable
energy centers will be included in the RESRAM beginning February 28, 2022. Prior to this change, 95% of these sales were included in
the FAC and 5% were included in the RESRAM. The order also establishes a five-year recovery period for $61 million of certain costs
associated with the Meramec Energy Center, which is expected to be retired in 2022. The new rates, base level of expenses, and
amortizations will become effective on February 28, 2022.
Ameren Illinois and ATXI use a forward-looking rate calculation with an annual revenue requirement reconciliation for each company’s
electric transmission business. 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 included in 2022 rates for Ameren Illinois’ and ATXI’s electric
transmission businesses are $422 million and $195 million, respectively. These revenue requirements represent an increase in Ameren
Illinois’ revenue requirement of $42 million and a decrease in ATXI’s revenue requirements of $5 million from the revenue requirements
reflected in 2021 rates, primarily due to higher expected rate base at Ameren Illinois and a lower expected rate base at ATXI. These
rates will affect Ameren Illinois’ and ATXI’s cash receipts during 2022, but will not determine their respective electric transmission
service operating revenues, which will instead be based on 2022 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 an appeal filed
with the United States Court of Appeals for the District of Columbia Circuit. Depending on the outcome of the appeal, the transmission
rates charged during previous periods and the currently effective rates may be subject to change. Additionally, in March 2019, the FERC
issued a Notice of Inquiry regarding its transmission incentives policy. In March 2020, the FERC issued a Notice of Proposed
Rulemaking on its transmission incentives policy, which addressed many of the issues in the Notice of Inquiry on transmission
incentives. The Notice of Proposed Rulemaking included an increased incentive in the allowed base ROE for participation in an RTO to
100 basis points from the current 50 basis points and revised the parameters for awarding incentives, while limiting the overall incentives
to a cap of 250 basis points, among other things. 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. If this proposal is
included in a final rule, Ameren Illinois and ATXI would no longer be eligible for the 50 basis point RTO incentive adder, prospectively.
The FERC is under no deadline to issue a final rule on this matter. Ameren is unable to predict the ultimate impact of any changes to the
FERC’s incentives policy, or any further order on base ROE. A 50 basis point change in the FERC-allowed base ROE would affect
Ameren’s and Ameren Illinois’ annual net income by an estimated $12 million and $8 million, respectively, based on each company’s
2022 projected rate base.
Ameren Illinois’ electric distribution service performance-based formula ratemaking framework under the IEIMA allows Ameren Illinois to
reconcile electric distribution service rates to its actual revenue requirement on an annual basis to reflect actual recoverable costs
incurred and a return at the applicable WACC on year-end rate base. 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. The regulatory balance is then collected from, or refunded
to, customers within two years from the end of the year. Pursuant to an order issued by the ICC in March 2021, Ameren Illinois expects
to use the current IEIMA formula framework to establish annual customer rates effective through 2023, and reconcile the related
revenue requirement for customer rates established for 2022 and 2023. As such, Ameren Illinois’ 2022 and 2023 revenues would 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. For more information on the
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March 2021 ICC order, see Note 2 – Rate and Regulatory Matters under Part II, Item 8, of this report. By law, the decoupling provisions
extend beyond the end of existing performance-based formula ratemaking, which ensures that Ameren Illinois’ electric distribution
revenues authorized in a regulatory rate review are not affected by changes in sales volumes.
Pursuant to the IETL, which was enacted in September 2021, Ameren Illinois may file an MYRP with the ICC to establish base rates for
electric distribution service to be charged to customers for each calendar year of a four-year period. An MYRP would allow Ameren
Illinois to reconcile electric distribution service rates to its actual revenue requirement on an annual basis, subject to a reconciliation cap
and adjustments to the ICC-determined ROE for performance incentives and penalties. Ameren Illinois’ existing riders will remain
effective whether it elects to file an MYRP or a traditional regulatory rate review. Additionally, electric distribution service revenues would
continue to be decoupled from sales volumes under either election. Subject to a constructive outcome regarding the ICC’s determination
of performance metrics, Ameren Illinois anticipates filing an MYRP by mid-January 2023, with rates effective beginning in 2024. If
Ameren Illinois does not file an MYRP for rates effective beginning in 2024, its next opportunity to file an MYRP would be for rates
effective beginning in 2028.
In December 2021, the ICC issued an order in Ameren Illinois’ annual update filing that approved a $58 million increase in Ameren
Illinois’ electric distribution service rates beginning in January 2022. Ameren Illinois’ 2022 electric distribution service revenues will be
based on its 2022 actual recoverable costs, 2022 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 of
December 31, 2021, Ameren Illinois expects its 2022 electric distribution year-end rate base to be $3.9 billion. The 2022 revenue
requirement reconciliation adjustment will be collected from, or refunded to, customers in 2024. 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 $11 million change in Ameren’s
and Ameren Illinois’ annual net income, based on Ameren Illinois’ 2022 projected year-end rate base, including electric energy-efficiency
investments. Ameren Illinois’ allowed ROE for 2021 was based on an annual average of the monthly yields of the 30-year United States
Treasury bonds of 2.05%.
Pursuant to Illinois law, Ameren Illinois’ electric energy-efficiency investments are deferred as a regulatory asset and earn 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. The allowed ROE on electric energy-efficiency investments can be increased or decreased by up to
200 basis points, depending on the achievement of annual energy savings goals. While the ICC has approved a plan for Ameren Illinois
to invest approximately $100 million per year in electric energy-efficiency programs through 2025, the ICC has the ability to reduce the
amount of electric energy-efficiency savings goals in future plan program years if there are insufficient cost-effective programs available,
which could reduce the investments in electric energy-efficiency programs. The electric energy-efficiency program investments and the
return on those investments are collected from customers through a rider and are not recovered through the electric distribution service
performance-based formula ratemaking framework. Pursuant to the IETL, the planned annual investments in electric energy-efficiency
programs will increase to approximately $120 million. Ameren Illinois expects to file a revised energy-efficiency plan with the ICC by
early March 2022 to reflect the expected increased level of annual investments.
Ameren Missouri’s next scheduled refueling and maintenance outage at its Callaway energy center is scheduled for the spring of 2022.
Effective beginning with the fall 2020 refueling and maintenance outage, during a scheduled refueling, which occurs every 18 months,
maintenance expenses are deferred as a regulatory asset and amortized until the completion of the next refueling and maintenance
outage. During an outage, depending on the availability of its other generation sources and the market prices for power, Ameren
Missouri’s purchased power costs may increase and the amount of excess power available for sale may decrease versus non-outage
years. Changes in purchased power costs and excess power available for sale are included in the FAC, which results in limited impacts
to earnings. In addition, Ameren Missouri may incur increased non-nuclear energy center maintenance costs in non-outage years.
In August 2021, the United States Court of Appeals for the Eighth Circuit issued a decision that affirmed the United States District Court
for the Eastern District of Missouri’s January 2017 liability ruling and the district court’s September 2019 remedy order as it related to the
installation of a flue gas desulfurization system at the Rush Island Energy Center, but reversed the order as it related to the installation
of a dry sorbent injection system at the Labadie Energy Center. In November 2021, the court of appeals issued an order denying
requests for consideration previously sought by both Ameren Missouri and the United States Department of Justice. Based on its
assessment of available legal, operational and regulatory alternatives, Ameren Missouri has determined not to further appeal the court
rulings and, in December 2021, filed a motion 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. The district court is
under no deadline to issue a ruling revising the remedy order. In January 2022, the MISO completed a preliminary assessment
regarding potential impacts of the retirement to the regional electric power system, which indicated transmission upgrades and voltage
support would be needed in advance of the retirement to address reliability concerns. In February 2022, Ameren Missouri expects to
formally notify the MISO of its intent to retire the Rush Island Energy Center. Upon receipt of the formal notification, the MISO will
conduct a final reliability assessment. The MISO must also separately approve the specific upgrades and transmission support required
to address reliability concerns noted in the assessment. For additional information on the NSR and Clean Air Act litigation, see Note 14 –
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Commitments and Contingencies under Part II, Item 8, of this report. Ameren Missouri expects to file an update to the 2020 IRP with the
MoPSC in the first half of 2022 to reflect the planned acceleration of the retirement of the Rush Island Energy Center from 2039, the
retirement year for the facility as reflected in the 2020 IRP. In February 2022, the MoPSC issued an order directing the MoPSC staff to
review Ameren Missouri’s planned accelerated retirement of the Rush Island Energy Center, including potential impacts on the reliability
and cost of Ameren Missouri’s service to its customers, Ameren Missouri’s plans to mitigate the customer impacts of the accelerated
retirement, and the prudence of Ameren Missouri’s actions and decisions with regard to the Rush Island Energy Center, among other
things. The MoPSC staff is under no deadline to complete this review. As of December 31, 2021, Ameren and Ameren Missouri
classified the remaining net book value of the Rush Island Energy Center as plant to be abandoned, net, within “Property, Plant, and
Equipment, Net” on Ameren’s and Ameren Missouri’s balance sheets. As part of the assessment of any potential future abandonment
loss, consideration will be given to rate and securitization orders issued by the MoPSC to Ameren Missouri and to orders issued to other
Missouri utilities with similar facts.
In January 2022, Ameren Missouri received notice of a proposed determination by the EPA that it has rejected Ameren Missouri’s
requests to extend the timeline for operating certain impoundments located at the Sioux and Meramec energy centers. Compliance with
the CCR Rule’s requirements for closure of the impoundments would be required 135 days after the EPA issues a final determination,
which Ameren Missouri expects to be issued in the spring of 2022. If Ameren Missouri was no longer able to use the surface
impoundments at the Sioux or Meramec energy centers, Ameren Missouri would not be able to operate the energy centers unless an
alternative for handling the CCR material is in place. Ameren Missouri plans to retire the Meramec Energy Center in 2022, and is
accelerating its construction plans to build a CCR Rule-compliant impoundment at the Sioux Energy Center to allow for continued
operations. Additionally, Ameren Missouri is seeking a reliability determination from the MISO, which, if granted, would extend the
deadline to comply with the requirement to close the impoundments and allow the energy centers to operate. Ameren Missouri does not
expect that this matter will have a material adverse effect on its results of operations, financial position, or liquidity.
The IETL established emission standards that became effective in September 2021. Ameren Missouri's natural gas-fired energy centers
in Illinois will be subject to limits on emissions, including CO2 and NOx, equal to their unit-specific average emissions from 2018 through
2020, for any rolling twelve-month period beginning October 1, 2021, through 2029. Further reductions to emissions limits will become
effective between 2030 and 2040, which could limit the operations of Ameren Missouri's five natural gas-fired energy centers located in
the state of Illinois, and will result in the closure of one or more energy centers earlier than anticipated. 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 as necessary. Ameren Missouri is reviewing the emission standards and the effect they may
have on its generation strategy, including any increases in capital expenditures or operating costs, and changes to the useful lives of the
five natural gas-fired energy centers. Ameren Missouri expects to file an update to the 2020 IRP with the MoPSC in the first half of 2022
to reflect, among other things, the impact of these new emissions standards.
Ameren Missouri and Ameren Illinois continue to make infrastructure investments and expect to seek increases to electric and natural
gas rates to recover the cost of investments and earn an adequate return. 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 continue to face cost recovery pressures, including limited economic growth in
their service territories, economic impacts of the COVID-19 pandemic, customer conservation efforts, the impacts of additional customer
energy-efficiency programs, and increased customer use of increasingly cost-effective technological advances, including private
generation and energy storage. However, over the long-term, we expect the decreased demand to be partially offset by increased
demand resulting from increased electrification of the economy for efficiencies and as a means to address economy-wide CO2 emission
concerns. We expect that increased investments, including expected future investments for environmental compliance, system reliability
improvements, and new generation sources, will result in rate base and revenue growth but also higher depreciation and financing costs.
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• We are observing inflationary pressures on the prices of commodities, labor, services, materials, and supplies. Ameren Missouri and
Ameren Illinois are generally allowed to pass on to customers prudently incurred costs for fuel, purchased power, and natural gas
supply. Additionally, for certain non-commodity cost changes, the use of trackers, riders, and formula ratemaking, as applicable,
mitigates our exposure. The inflationary pressures 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.
Liquidity and Capital Resources
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Our customers’ payment for our services has been adversely affected by the COVID-19 pandemic. See the Results of Operations
section above for additional information on our accounts receivable balances. Further, our liquidity and our capital expenditure plans
could be adversely affected by other impacts resulting from the COVID-19 pandemic, including but not limited to potential impacts on our
ability to access the capital markets on reasonable terms when needed and the timing of tax payments and the utilization of tax credits.
We expect to make significant capital expenditures to improve our electric and natural gas utility infrastructure, however, disruptions to
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the capital markets and the ability of our suppliers and contractors to perform as required under their contracts could impact the
execution of our capital investment strategy. For further discussion on the impacts to our ability to access the capital markets, see below.
In February 2022, 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 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 $8.4 billion over the five-year period from 2022 through 2026, with expenditures largely recoverable under the
PISA and the RESRAM. The planned investments in 2024 through 2026 are based on the assumption that Ameren Missouri requests
and receives MoPSC approval of an extension of the PISA from December 2023 to December 2028.
In connection with Ameren Missouri’s 2020 IRP, Ameren established a goal of achieving net-zero carbon emissions by 2050. Ameren is
also targeting a 50% CO2 emission reduction by 2030 and an 85% reduction by 2040 from the 2005 level. In August 2021, the MoPSC
issued an order affirming the plan’s compliance with Missouri law. The plan targets cleaner and more diverse sources of energy
generation, including solar, wind, hydro, and nuclear power, and supports increased investment in new energy technologies. It also
includes expanding renewable sources by adding 3,100 MWs of renewable generation by the end of 2030 and a total of 5,400 MWs of
renewable generation by 2040. These amounts include 700 MWs related to the High Prairie Renewable and Atchison Renewable
energy centers, which support Ameren Missouri’s compliance with the state of Missouri’s requirement of achieving 15% of native load
sales from renewable energy sources that began in 2021. The plan also includes accelerating the retirement dates of the Sioux and
Rush Island coal-fired energy centers to 2028 and 2039, respectively, the continued implementation of customer energy-efficiency
programs, and the expectation that Ameren Missouri will seek NRC approval for an extension of the operating license for the Callaway
Energy Center beyond its current 2044 expiration date. Additionally, the plan includes retiring the Meramec and Labadie coal-fired
energy centers at the end of their useful lives (by 2022 and 2042, respectively). 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, 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;
the ability of 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, among other things; changes in the scope and timing of projects; the availability of federal production and
investment tax credits related to renewable energy and Ameren Missouri’s ability to use such credits; the cost of wind, solar, and other
renewable generation and storage technologies; changes in environmental regulations, including those related to carbon emissions;
energy prices and demand; and Ameren Missouri’s ability to obtain necessary rights-of-way, easements, and transmission
interconnection agreements at an acceptable cost and in a timely fashion. In December 2021, the MoPSC issued an order in Ameren
Missouri’s 2021 electric service regulatory rate review, which, among other things, approved a change in the depreciable lives of the
Sioux and Rush Island energy centers’ assets consistent with Ameren Missouri’s 2020 IRP. Due to the NSR and Clean Air Act Litigation
discussed in Note 14 – Commitments and Contingencies under Part II, Item 8, of this report, Ameren Missouri plans to retire the Rush
Island Energy Center prior to the 2039 date discussed above. Ameren Missouri expects to file an update to the 2020 IRP with the
MoPSC in the first half of 2022 to reflect an accelerated retirement date for the Rush Island Energy Center and the impact of new
emission standards pursuant to the IETL, as discussed in Note 14 – Commitments and Contingencies, among other things. The next
integrated resource plan is expected to be filed in September 2023.
Effective beginning August 2021, Missouri law allows Missouri electric utility companies to petition the MoPSC for a financing order to
authorize the issuance of securitized utility tariff bonds to finance the cost of retiring electric generation facilities before the end of their
useful lives, including the repayment of existing debt. In connection with the planned accelerated retirement of the Rush Island Energy
Center due to the NSR and Clean Air Act Litigation discussed above, 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.
In February 2022, Ameren Missouri entered into a build-transfer agreement with a subsidiary of Invenergy Renewables Global, LLC to
acquire a 150-megawatt solar generation facility after construction. The facility is expected to be located in southeastern Illinois. The
acquisition is subject to certain conditions, including the issuance of a certificate of convenience and necessity by the MoPSC, obtaining
a MISO transmission interconnection agreement, and approval by the FERC. Ameren Missouri expects to file for a certificate of
convenience and necessity with the MoPSC by mid-2022.
Through 2026, 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. We estimate that we will invest up to $18.0 billion (Ameren
Missouri – up to $9.2 billion; Ameren Illinois – up to $8.6 billion; ATXI – up to $0.2 billion) of capital expenditures during the period from
2022 through 2026. These planned investments are based on the assumption of continued constructive regulatory frameworks, including
an assumption that Ameren Missouri requests and receives MoPSC approval of an extension of the PISA from December 2023 to
December 2028. Ameren’s and Ameren Missouri’s estimates exclude renewable generation investment opportunities of 1,200 MWs by
71
•
•
•
•
•
•
2026, which are included in Ameren Missouri’s 2020 IRP, and additional investment opportunities that may be approved by the MISO to
address reliability concerns in connection with the planned accelerated retirement of the Rush Island Energy Center.
In April 2021, the MISO issued a report outlining a preliminary long-range transmission planning roadmap of projects through 2039,
which considers the rapidly changing generation mix within MISO resulting from significant additions of renewable generation, actual and
expected generation plant closures, and state mandates or goals for clean energy or carbon emissions reductions. In February 2022, the
MISO updated a list of projects under consideration for the first phase of the roadmap, and is expected to approve certain projects for
the first phase by mid-2022. Expenditures that result from the MISO long-range transmission planning roadmap may cause adjustments
to our estimated 2022 through 2026 capital expenditures.
Environmental regulations, including those related to CO2 emissions, or other actions taken by the EPA or state regulators, or
requirements that may result from the NSR and Clean Air Act Litigation discussed in Note 14 – Commitments and Contingencies under
Part II, Item 8, of this report, could result in significant increases in capital expenditures and operating costs. Regulations enacted by a
prior federal administration can be reviewed and repealed, and replacement or alternative regulations can be proposed or adopted by
the current federal administration including the EPA. The ultimate implementation of any of these regulations, as well as the timing of
any such implementation, is uncertain. However, the individual or combined effects of existing and new environmental regulations could
result in significant capital expenditures, increased operating costs, or the closure or alteration of some of Ameren Missouri’s coal and
natural gas-fired energy centers. Ameren Missouri’s capital expenditures are subject to MoPSC prudence reviews, which could result in
cost disallowances as well as regulatory lag. The cost of Ameren Illinois’ purchased power and natural gas purchased for resale could
increase. However, Ameren Illinois expects that these costs would be recovered from customers with no material adverse effect on its
results of operations, financial position, or liquidity. Ameren’s and Ameren Missouri’s earnings could benefit from increased investment
to comply with environmental regulations if those investments are reflected and recovered on a timely basis in customer rates.
The Ameren Companies have multiyear credit agreements that cumulatively provide $2.3 billion of credit through December 2025,
subject to a 364-day repayment term for Ameren Missouri and Ameren Illinois, with the option to seek incremental commitments to
increase the cumulative credit provided to $2.7 billion. See Note 4 – Short-term Debt and Liquidity under Part II, Item 8, of this report for
additional information regarding the Credit Agreements. By the end of 2022, $55 million $400 million, and $50 million of long-term debt
obligations are due to mature at Ameren Missouri, Ameren Illinois, and ATXI, respectively. Ameren, Ameren Missouri, and Ameren
Illinois believe that their liquidity is adequate given their 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. However, there can be
no assurance that significant changes in economic conditions, disruptions in the capital and credit markets, or other unforeseen events
will not materially affect their ability to execute their expected operating, capital, or financing plans.
Ameren expects its cash used for currently planned capital expenditures and dividends to exceed cash provided by operating activities
over the next several years. As part of its funding plan for capital expenditures, Ameren is using newly issued shares of common stock,
rather than market-purchased shares, to satisfy requirements under the DRPlus and employee benefit plans and expects to continue to
do so through at least 2026. Ameren expects these issuances to provide equity of about $100 million annually. In addition, in 2021,
Ameren established an ATM program under which Ameren may offer and sell from time to time up to $750 million of its common stock,
which includes the ability to enter into forward sales agreements, subject to market conditions and other factors. Ameren plans to issue
approximately $300 million of equity each year from 2022 to 2026 in addition to issuances under the DRPlus and employee benefit
plans. Ameren expects its equity to total capitalization to be about 45% through December 31, 2026, with the long-term intent to support
solid investment-grade credit ratings. Ameren Missouri and Ameren Illinois expect to fund cash flow needs through debt issuances,
adjustments of dividends to Ameren (parent), and/or capital contributions from Ameren (parent).
As of December 31, 2021, Ameren had $133 million in tax benefits from federal and state income tax credit carryforwards and
$66 million in tax benefits from federal and state net operating loss carryforwards, which will be utilized in future periods. Ameren
expects federal income tax payments at the required minimum levels from 2022 to 2026 resulting from the anticipated use of existing
production tax credits generated by Ameren Missouri’s High Prairie Renewable and Atchison Renewable energy centers, existing tax net
operating losses, tax credit carryforwards, tax overpayments, and outstanding refunds.
As a result of the significant increase in customer demand and prices for natural gas and electricity experienced in mid-February 2021
due to extremely cold weather, for the month of February 2021, Ameren Missouri and Ameren Illinois had under-recovered costs under
their PGA clauses and, for Ameren Missouri, under the FAC (Ameren Missouri - PGA $53 million, FAC $50 million; Ameren Illinois -
PGA $221 million). Ameren Missouri’s PGA and FAC under-recoveries are designed to be collected from customers over 12 months
beginning November 2021 and eight months beginning October 2021, respectively. In October 2021, the MoPSC issued an order
allowing Ameren Missouri to extend the collection period for the cumulative PGA under-recovery as of August 2021, which includes the
February 2021 under-recovery, from 12 months to 36 months beginning November 2021, to lessen the impact on customer rates.
Ameren Illinois is collecting the PGA under-recovery over 18 months beginning April 2021, but the collection of the remaining balance
may be extended at Ameren Illinois’ election to lessen the impact on customer rates.
72
The above items could have a material impact on our results of operations, financial position, and liquidity. Additionally, in the ordinary
course of business, we evaluate strategies to enhance our results of operations, financial position, and liquidity. These strategies may include
acquisitions, divestitures, opportunities to reduce costs or increase revenues, and other strategic initiatives to increase Ameren’s shareholder
value. We are unable to predict which, if any, of these initiatives will be executed. The execution of these initiatives may have a material
impact on our future results of operations, financial position, or liquidity.
REGULATORY MATTERS
See Note 2 – Rate and Regulatory Matters under Part II, Item 8, of this report.
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. We have outlined below the critical accounting estimates
that we believe are the most difficult, subjective, or complex. Any change in the assumptions or judgments applied in determining the
following matters, among others, could have a material impact on future financial results.
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
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 performance-based formula
ratemaking framework
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. Regulatory
assets represent the deferral of incurred costs that are probable of future recovery in customer rates. Regulatory assets are amortized as
the incurred costs are recovered through customer rates. In some cases, we record regulatory assets before approval for recovery has
been received from the applicable regulatory commission. We must use judgment to conclude that costs deferred as regulatory assets are
probable of future recovery. We base our conclusion on certain factors including, but not limited to, orders issued by our regulatory
commissions, legislation, or historical experience, as well as discussions with legal counsel. If facts and circumstances lead us to conclude
that a recorded regulatory asset is no longer probable of recovery or that plant assets are probable of disallowance, we record a charge to
earnings, which could be material. Regulatory liabilities represent revenues received from customers to fund expected costs that have not
yet been incurred or that are probable of future refunds to customers. 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. Under IEIMA performance-based formula ratemaking, effective
through 2023, Ameren Illinois estimates its annual electric distribution revenue requirement for interim periods by using internal forecasted
rate base and published forecasted data regarding the annual average of the monthly yields of the 30-year United States Treasury bonds.
73
Ameren Illinois estimates its annual revenue requirement as of December 31 of each year using that year’s actual operating results and
assesses the probability of recovery from or refund to customers that the ICC will order at the end of the following year. Variations in
investments made or orders by the ICC or courts can result in a subsequent change in Ameren Illinois’ estimate. Ameren Illinois and ATXI
follow a similar process for their FERC rate-regulated electric transmission businesses. Ameren Missouri estimates lost electric margins
resulting from its MEEIA customer energy-efficiency programs, which are subsequently recovered through the MEEIA rider. See Note 2 –
Rate and Regulatory Matters under Part II, Item 8, of this report for a description of our regulatory mechanisms and quantification of these
assets or liabilities for each of the Ameren Companies.
The following table reflects the gain and other comprehensive income, which would be offset by the removal of regulatory assets and
liabilities and an increase in accumulated other comprehensive income, that would have resulted if accounting guidance for rate-regulated
businesses had been eliminated as of December 31, 2021:
Gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Other comprehensive income (before taxes) - pension and other postretirement benefit plan activity . . . .
Ameren
Ameren
Missouri
Ameren
Illinois
3,562
$
791
2,362
$
399
1,104
392
Accounting Estimate
Benefit Plan Accounting
Based on actuarial calculations, we accrue costs of providing
future employee benefits for the benefit plans we offer our
employees. See Note 10 – Retirement Benefits under Part II,
Item 8, of this report.
Uncertainties Affecting Application
•
•
•
•
•
•
•
•
•
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. 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.
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, 2021:
Pension Benefits
Postretirement Benefits
0.25% decrease in discount rate . . . . . . . . . . . . . . . . . $
0.25% decrease in return on assets . . . . . . . . . . . . . . .
0.25% increase in future compensation . . . . . . . . . . . .
$
18
11
5
188
$
—
21
Net Periodic
Benefit Cost
Projected Pension
Benefit Obligation
Net Periodic
Benefit Cost
Projected
Postretirement Benefit
Obligation
$
3
3
—
38
—
—
74
Accounting Estimate
Accounting for Contingencies
Uncertainties Affecting Application
We make judgments and estimates in the recording and the
disclosing of liabilities for claims, litigation, environmental
remediation, the actions of various regulatory agencies, or
other matters that occur in the normal course of business.
We record a loss contingency when it is probable that a
liability has been incurred and that 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. In making the determination as to the amount of potential loss and the probability of loss, we consider the nature of the litigation,
the claim or assessment, opinions or views of legal counsel, and the expected outcome of potential litigation, among other things. If no
estimate is better than another within our range of estimates, we record as our best estimate of a loss the minimum value of our estimated
range of outcomes. As additional information becomes available, we reassess the potential liability related to the contingency and revise
our estimates. The amount recorded for any contingency may differ from actual costs incurred when the contingency is resolved.
Contingencies are normally resolved over long periods of time. In our evaluation of legal matters, management consults with legal counsel
and relies on analysis of relevant case law and legal precedents. See 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 for information on the Ameren Companies’
contingencies.
Accounting Estimate
Accounting for Income Taxes
We record a provision for income taxes, deferred tax assets
and liabilities, and a valuation allowance against net deferred
tax assets, if any. See Note 12 – Income Taxes under Part II,
Item 8, of this report.
Uncertainties Affecting Application
•
•
•
•
•
•
Changes in business, industry, laws, technology, or
economic and market conditions affecting forecasted
financial condition and/or results of operations
Estimates of the amount and character of future taxable
income and forecasted use of our tax credit carryforwards
Enacted tax rates applicable to taxable income in years in
which temporary differences are recovered or settled
Effectiveness of implementing tax planning strategies
Changes in income tax laws, including amounts subject to
income tax, and the regulatory treatment of any tax reform
changes
Results of audits and examinations by taxing authorities
75
Basis for Judgment
The reporting of tax-related assets and liabilities requires the use of estimates and significant management judgment. Deferred tax
assets and liabilities are recorded to represent future effects on income taxes for temporary differences between the basis of assets for
financial reporting and tax purposes. Although management believes that current estimates for deferred tax assets and liabilities are
reasonable, actual results could differ from these estimates for a variety of reasons, including: a change in forecasted financial condition
and/or results of operations; changes in income tax laws, enacted tax rates or amounts subject to income tax; the form, structure, and
timing of asset or stock sales or dispositions; changes in the regulatory treatment of any tax reform benefits; and changes resulting from
audits and examinations by taxing authorities. Valuation allowances against deferred tax assets are recorded when management
concludes it is more likely than not such asset will not be realized in future periods. Accounting for income taxes also requires that only tax
benefits for positions taken or expected to be taken on tax returns that meet the more-likely-than-not recognition threshold can be
recognized or continue to be recognized. Management evaluates each position solely on the technical merits and facts and circumstances
of the position, assuming that the position will be examined by a taxing authority that has full knowledge of all relevant information.
Significant judgment is required to determine recognition thresholds and the related amount of tax benefits to be recognized. At each
period end, and as new developments occur, management reevaluates its tax positions. See Note 12 – Income Taxes under Part II,
Item 8, of this report for the amount of deferred income taxes recorded at December 31, 2021.
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 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. In
subsequent periods, we adjust AROs for accretion and changes in the estimated fair values of the obligations, with a corresponding
increase or decrease in the asset book value for the fair value changes. We estimate the fair value of our AROs using present value
techniques, in which we make various assumptions about discount rates and cost escalation rates. In addition, these estimates include
assumptions of the probability, timing, and amount of cash expenditures to settle the ARO, and are based on currently available
technology. Ameren and Ameren Missouri have recorded AROs for retirement costs associated with decommissioning of Ameren
Missouri’s Callaway and wind renewable energy centers, certain Ameren Missouri solar energy centers, CCR facilities, and river structures
at certain energy centers used for unloading coal and circulating water systems. Additionally, Ameren, Ameren Missouri, and Ameren
Illinois have recorded AROs for retirement costs associated with asbestos removal and the disposal of certain transformers. See Note 15 –
Supplemental Information under Part II, Item 8, of this report for the amount of AROs recorded at December 31, 2021.
A significant portion of Ameren’s and Ameren Missouri’s AROs relate to the decommissioning of Ameren Missouri’s Callaway Energy
Center. Changes in key assumptions could materially affect the decommissioning obligation. 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,
2021:
Change in Callaway Energy Center’s Key ARO Assumptions
Increase (Decrease) to ARO
Discount rate decreased by 0.10% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Cost escalation rate increased by 0.25% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase in the estimated decommissioning costs by 10% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Two-year deferral in timing of cash expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
63
94
(8)
Impact of New Accounting Pronouncements
See Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of this report.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market risk is the risk of changes in value of a physical asset or a financial instrument, derivative or nonderivative, caused by fluctuations
in market variables such as interest rates, commodity prices, and equity security prices. A derivative is a contract whose value is dependent
76
on, or derived from, the value of some underlying asset or index. The following discussion of our risk management activities includes forward-
looking statements that involve risks and uncertainties. Actual results could differ materially from those projected in the forward-looking
statements. We handle market risks in accordance with established policies, which may include entering into various derivative transactions.
In the normal course of business, we also face risks that are either nonfinancial or nonquantifiable. Such risks, principally business, legal, and
operational risks, are not part of the following discussion.
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.
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.
We manage our interest rate exposure by controlling the amount of debt instruments within our total capitalization portfolio and by
monitoring the effects of market changes on interest rates. For defined pension and postretirement benefit plans, we control the duration and
the portfolio mix of our plan assets. 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.
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, 2021 is immaterial.
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. 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. 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 $11 million change in Ameren’s and Ameren Illinois’
annual net income, based on Ameren Illinois’ 2022 projected year-end rate base, including electric energy-efficiency investments. 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. Exchange-traded
contracts are supported by the financial and credit quality of the clearing members of the respective exchanges and carry only a nominal
credit risk. In all other transactions, we are exposed to credit risk in the event of nonperformance by the counterparties to the transaction. 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, 2021.
Our revenues are primarily derived from sales or delivery of electricity and natural gas to customers in Missouri and Illinois. 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. At December 31, 2021, 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. At the option of an alternative retail electric supplier,
Ameren Illinois may be required to purchase the supplier’s receivables relating to Ameren Illinois’ distribution customers who elected to
receive power supply from the alternative retail electric supplier. 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, 2021, Ameren
Illinois’ balance of purchased accounts receivable associated with the utility consolidated billing and purchase of receivables services was
$27 million. The risk associated with Ameren Illinois’ electric and natural gas trade receivables is also mitigated by a rider that allows Ameren
Illinois to recover the difference between its actual net bad debt write-offs under GAAP and the amount of net bad debt write-offs included in
its base rates. Ameren Missouri and Ameren Illinois continue to monitor the impact of the COVID-19 pandemic on customer collections and
customer account balances. Ameren Missouri and Ameren Illinois make adjustments to their respective allowance for doubtful accounts as
77
deemed necessary to ensure that such allowances are adequate to cover estimated uncollectible customer account balances. 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, 2021. In addition, for information regarding Ameren Illinois’
suspension and reinstatement of customer disconnection activities and late fee charges for nonpayment, see Note 2 – Rate and Regulatory
Matters under Part II, Item 8, of this report.
Investment Price Risk
Plan assets of the pension and postretirement trusts, the nuclear decommissioning trust fund, and company-owned life insurance
contracts include equity and debt securities. The equity securities are exposed to price fluctuations in equity markets. The debt securities are
exposed to changes in interest rates.
Our costs for providing defined benefit retirement and postretirement benefit plans are dependent upon a number of factors, including
the rate of return on plan assets. Ameren manages plan assets in accordance with the “prudent investor” guidelines contained in ERISA.
Ameren’s goal is to ensure that sufficient funds are available to provide benefits at the time they are payable, while also maximizing total
return on plan assets and minimizing expense volatility consistent with its tolerance for risk. Ameren delegates investment management to
specialists. Where appropriate, Ameren provides the investment manager with guidelines that specify allowable and prohibited investment
types. Ameren regularly monitors manager performance and compliance with investment guidelines.
The expected return on plan assets assumption is based on historical and projected rates of return for current and planned asset
classes in the investment portfolio. Projected rates of return for each asset class are estimated after an analysis of historical experience,
future expectations, and the volatility of the various asset classes. After considering the target asset allocation for each asset class, we adjust
the overall expected rate of return for the portfolio for historical and expected experience of active portfolio management results compared
with benchmark returns, and for the effect of expenses paid from plan assets. 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 2022 assumed
return on plan assets of 6.50%.
Ameren Missouri also maintains a trust fund, as required by the NRC and Missouri law, to fund certain costs of nuclear plant
decommissioning. As of December 31, 2021, this fund was invested in domestic equity securities (71%) and debt securities (28%). 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. Ameren Missouri actively monitors the portfolio by benchmarking the
performance of its investments against certain indices and by maintaining and periodically reviewing established target allocation
percentages of the trust assets to various investment options. 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.
Additionally, Ameren and Ameren Illinois have company-owned life insurance contracts with net asset values of $169 million and
$8 million, respectively, as of December 31, 2021. 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. These cost recovery mechanisms allow
Ameren Missouri and Ameren Illinois to pass on to retail customers prudently incurred costs for fuel, purchased power, and natural gas
supply.
Ameren Missouri’s and Ameren Illinois’ strategy is designed to reduce the effect of market fluctuations for their customers. The effects of
price volatility cannot be eliminated. However, procurement and sales strategies involve risk management techniques and instruments, as
well as the management of physical assets.
Ameren Missouri has a FAC that allows it to recover or refund, through customer rates, 95% of the variance in net energy costs from the
amount set in base rates without a traditional regulatory rate review, subject to MoPSC prudence reviews. 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 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 2021, Ameren Illinois procured power on behalf of its customers for
23% of its total kilowatthour sales. Ameren Illinois purchases energy and capacity through the MISO and through bilateral contracts resulting
78
from IPA procurement events. The IPA has proposed and the ICC has approved multiple procurement events covering portions of years
through 2024 for capacity and energy. 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 2021 with 15-year terms commencing on the date of first renewable energy credit delivery. Ameren Illinois does
not generate earnings based on the resale of power or purchase of zero emission credits or renewable energy credits but rather on the
delivery of the energy.
Ameren Missouri and Ameren Illinois have PGA clauses that permit costs incurred for natural gas to be recovered directly from utility
customers without a traditional regulatory rate review, subject to prudence reviews.
The following table presents, as of December 31, 2021, 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 2022 through
2026. 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.
Ameren:
Coal(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Coal transportation(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nuclear fuel(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas for distribution(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchased power for Ameren Illinois(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Missouri:
Coal(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Coal transportation(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nuclear fuel(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas for distribution(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois:
Natural gas for distribution(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchased power(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2022
2023
2024 – 2026
99 %
100
100
94
69
99 %
100
100
96
93 %
69
51 %
100
97
37
34
51 %
100
97
40
36 %
34
22 %
32
80
11
11
22 %
32
80
19
9 %
11
(a)
(b)
(c)
(d)
Ameren Missouri has agreements in place to purchase and transport coal to its energy centers. 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.
The Callaway Energy Center has historically required refueling at 18-month intervals. As there is no refueling and maintenance outage scheduled to occur during 2024,
there are also no nuclear fuel deliveries anticipated to occur in this year.
Represents the percentage of natural gas price-hedged for peak winter season of November through March. The year 2022 represents January 2022 through March 2022.
The year 2023 represents November 2022 through March 2023. This continues each successive year through March 2026.
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.
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 2025 to comply with environmental regulations. Disruptions to the deliveries of low-
sulfur coal from a supplier could compromise Ameren Missouri’s ability to operate in compliance with emission standards. The suppliers of
low-sulfur coal are limited. In addition, low-sulfur coal suppliers have experienced financial hardships in recent years and could continue to
experience financial hardships that could impact their ability to deliver shipments of low-sulfur coal in accordance with existing supply
contracts. If Ameren Missouri were to experience a temporary disruption of low-sulfur coal deliveries that caused it to exhaust its existing
inventory, and if other sources of low-sulfur coal were not available, Ameren Missouri would have to use its existing emission allowances,
purchase emission allowances, and reduce generation to achieve compliance with environmental regulations. 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 2023.
79
ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders
of Ameren Corporation
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of Ameren Corporation and its subsidiaries (the “Company”) as of
December 31, 2021 and 2020, and the related consolidated statements of income and comprehensive income, of shareholders’ equity and of
cash flows for each of the three years in the period ended December 31, 2021, including the related notes and financial statement schedules
listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). We also have audited the
Company’s internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated
Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the
Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period
ended December 31, 2021 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion,
the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on
criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
Basis for Opinions
The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over
financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on
Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated
financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm
registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to
the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or
fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the
consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits
also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an
understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the
design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures
as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.
80
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that
was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to
the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of
critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by
communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to
which it relates.
Accounting for the Effects of Regulation
As described in Notes 1 and 2 to the consolidated financial statements, the Company has operations that are subject to the decisions and
requirements of its regulators. As disclosed by management, the Company’s use of accounting guidance for rate-regulated businesses
results in recording regulatory assets and liabilities for certain transactions that management expects will be recovered from or refunded to
customers in future rates. Regulatory assets and liabilities are amortized consistent with the period of expected regulatory treatment. As of
December 31, 2021, there were approximately $1.6 billion of regulatory assets and approximately $6.0 billion of regulatory liabilities. In some
cases, management records regulatory assets before approval for recovery has been received from the applicable regulatory commission.
Management must use judgment to conclude that costs deferred as regulatory assets are probable of future recovery. Additionally,
management recognizes revenue for alternative revenue programs that allow for an automatic rate adjustment, are probable of recovery, and
are collected within 24 months of the end of the annual period in which they are recognized. Management’s conclusions are based on certain
factors including, but not limited to, regulatory commission orders, legislation, or historical experience, as well as management’s discussions
with legal counsel.
The principal considerations for our determination that performing procedures relating to accounting for the effects of regulation is a critical
audit matter are the significant judgment by management when accounting for (i) new or existing regulatory assets or liabilities that were
impacted by updates in regulatory commission orders, legislation, historical experience, or management’s discussions with legal counsel, (ii)
the probability of recovery of regulatory assets and refund of regulatory liabilities recorded before approval has been received from the
regulator, and (iii) regulatory mechanisms meeting the alternative revenue program criteria, which in turn led to a high degree of auditor
judgment, subjectivity, and effort when performing audit procedures and evaluating audit evidence obtained related to management’s
application of regulatory accounting, assessment of probability of recovery of regulatory assets and refund of regulatory liabilities, and
expected timing of collection within 24 months of the end of the annual period in which mechanisms are recognized.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the
consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s implementation
and application of new or existing regulatory assets or liabilities, including controls related to evaluating the probability of recovery of
regulatory assets and refund of regulatory liabilities, and alternative revenue programs. These procedures also included, among others, (i)
testing calculations of new and existing regulatory assets or liabilities by comparison to provisions and formulas outlined in regulatory
commission orders or legislation, (ii) evaluating management’s assessment of the probability of recovery of regulatory assets and refund of
regulatory liabilities, and (iii) evaluating management’s assessment of regulatory mechanisms meeting the alternative revenue program
criteria and the expected timing of collection within 24 months of the end of the annual period in which mechanisms are recognized.
/s/ PricewaterhouseCoopers LLP
St. Louis, Missouri
February 22, 2022
We have served as the Company’s auditor since at least 1932. We have not been able to determine the specific year we began serving as
auditor of the Company.
81
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders
of Union Electric Company
Opinion on the Financial Statements
We have audited the accompanying balance sheets of Union Electric Company (the “Company”) as of December 31, 2021 and 2020, and the
related statements of income, of shareholders’ equity and of cash flows for each of the three years in the period ended December 31, 2021,
including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the
“financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as
of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended
December 31, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the
Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due
to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial
reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose
of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such
opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the
amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide
a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was
communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the
financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit
matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical
audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Regulation
As described in Notes 1 and 2 to the financial statements, the Company has operations that are subject to the decisions and requirements of
its regulators. As disclosed by management, the Company’s use of accounting guidance for rate-regulated businesses results in recording
regulatory assets and liabilities for certain transactions that management expects will be recovered from or refunded to customers in future
rates. Regulatory assets and liabilities are amortized consistent with the period of expected regulatory treatment. As of December 31, 2021,
there were approximately $0.7 billion of regulatory assets and approximately $3.4 billion of regulatory liabilities. In some cases, management
records regulatory assets before approval for recovery has been received from the applicable regulatory commission. Management must use
judgment to conclude that costs deferred as regulatory assets are probable of future recovery. Management’s conclusions are based on
certain factors including, but not limited to, regulatory commission orders, legislation, or historical experience, as well as management’s
discussions with legal counsel.
The principal considerations for our determination that performing procedures relating to accounting for the effects of regulation is a critical
audit matter are the significant judgment by management when accounting for (i) new or existing regulatory assets or liabilities that were
impacted by updates in regulatory commission orders, legislation, historical experience, or management’s discussions with legal counsel, and
(ii) the probability of recovery of regulatory assets and refund of regulatory liabilities recorded before approval has been received from the
regulator, which in turn led to a high degree of auditor judgment, subjectivity, and audit effort when performing audit procedures and
82
evaluating audit evidence obtained related to management’s application of regulatory accounting and assessment of probability of recovery of
regulatory assets and refund of regulatory liabilities.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the
financial statements. These procedures included testing the effectiveness of controls relating to management’s implementation and
application of new or existing regulatory assets or liabilities, including controls related to evaluating the probability of recovery of regulatory
assets and refund of regulatory liabilities. These procedures also included, among others, (i) testing calculations of new and existing
regulatory assets or liabilities by comparison to provisions and formulas outlined in regulatory commission orders, and (ii) evaluating
management’s assessment of the probability of recovery of regulatory assets and refund of regulatory liabilities.
/s/ PricewaterhouseCoopers LLP
St. Louis, Missouri
February 22, 2022
We have served as the Company’s auditor since at least 1932. We have not been able to determine the specific year we began serving as
auditor of the Company.
83
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders
of Ameren Illinois Company
Opinion on the Financial Statements
We have audited the accompanying balance sheets of Ameren Illinois Company (the “Company”) as of December 31, 2021 and 2020, and
the related statements of income, of shareholders’ equity and of cash flows for each of the three years in the period ended December 31,
2021, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to
as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the
Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period
ended December 31, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the
Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due
to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial
reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose
of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such
opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the
amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide
a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was
communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the
financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit
matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical
audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Regulation
As described in Notes 1 and 2 to the financial statements, the Company has operations that are subject to the decisions and requirements of
its regulators. As disclosed by management, the Company’s use of accounting guidance for rate-regulated businesses results in recording
regulatory assets and liabilities for certain transactions that management expects will be recovered from or refunded to customers in future
rates. Regulatory assets and liabilities are amortized consistent with the period of expected regulatory treatment. As of December 31, 2021,
there were approximately $0.9 billion of regulatory assets and approximately $2.4 billion of regulatory liabilities. In some cases, management
records regulatory assets before approval for recovery has been received from the applicable regulatory commission. Management must use
judgment to conclude that costs deferred as regulatory assets are probable of future recovery. Additionally, management recognizes revenue
for alternative revenue programs that allow for an automatic rate adjustment, are probable of recovery, and are collected within 24 months of
the end of the annual period in which they are recognized. Management’s conclusions are based on certain factors including, but not limited
to, regulatory commission orders, legislation, or historical experience, as well as management’s discussions with legal counsel.
The principal considerations for our determination that performing procedures relating to accounting for the effects of regulation is a critical
audit matter are the significant judgment by management when accounting for (i) new or existing regulatory assets or liabilities that were
impacted by updates in regulatory commission orders, legislation, historical experience, or management’s discussions with legal counsel, (ii)
the probability of recovery of regulatory assets and refund of regulatory liabilities recorded before approval has been received from the
regulator, and (iii) regulatory mechanisms meeting the alternative revenue program criteria, which in turn led to a high degree of auditor
84
judgment, subjectivity, and effort when performing audit procedures and evaluating audit evidence obtained related to management’s
application of regulatory accounting, assessment of probability of recovery of regulatory assets and refund of regulatory liabilities, and
expected timing of collection within 24 months of the end of the annual period in which mechanisms are recognized.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the
financial statements. These procedures included testing the effectiveness of controls relating to management’s implementation and
application of new or existing regulatory assets or liabilities, including controls related to evaluating the probability of recovery of regulatory
assets and refund of regulatory liabilities, and alternative revenue programs. These procedures also included, among others, (i) testing
calculations of new and existing regulatory assets or liabilities by comparison to provisions and formulas outlined in regulatory commission
orders or legislation, (ii) evaluating management’s assessment of the probability of recovery of regulatory assets and refund of regulatory
liabilities, and (iii) evaluating management’s assessment of regulatory mechanisms meeting the alternative revenue program criteria and the
expected timing of collection within 24 months of the end of the annual period in which mechanisms are recognized.
/s/ PricewaterhouseCoopers LLP
St. Louis, Missouri
February 22, 2022
We have served as the Company’s auditor since 1998.
85
AMEREN CORPORATION
CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME
(In millions, except per share amounts)
Operating Revenues:
Electric
Natural gas
Total operating revenues
Operating Expenses:
Fuel
Purchased power
Natural gas purchased for resale
Other operations and maintenance
Depreciation and amortization
Taxes other than income taxes
Total operating expenses
Operating Income
Other Income, Net
Interest Charges
Income Before Income Taxes
Income Taxes
Net Income
Less: Net Income Attributable to Noncontrolling Interests
Net Income Attributable to Ameren Common Shareholders
Net Income
Other Comprehensive Income, Net of Taxes
Pension and other postretirement benefit plan activity, net of income taxes of $4,
$5, and $1, respectively
Comprehensive Income
Less: Comprehensive Income Attributable to Noncontrolling Interests
Comprehensive Income Attributable to Ameren Common Shareholders
Earnings per Common Share – Basic
Earnings per Common Share – Diluted
Weighted-average Common Shares Outstanding – Basic
Weighted-average Common Shares Outstanding – Diluted
$
$
$
$
$
$
Year Ended December 31,
2020
2021
2019
5,297
1,097
6,394
581
606
442
1,774
1,146
512
5,061
1,333
202
383
1,152
157
995
5
990
$
$
4,911
883
5,794
490
513
272
1,661
1,075
483
4,494
1,300
151
419
1,032
155
877
6
871
$
$
4,981
929
5,910
535
556
331
1,745
995
481
4,643
1,267
130
381
1,016
182
834
6
828
995
$
877
$
834
14
1,009
5
1,004
3.86
3.84
256.3
257.6
$
$
$
16
893
6
887
3.53
3.50
247.0
248.7
$
$
$
5
839
6
833
3.37
3.35
245.6
247.1
The accompanying notes are an integral part of these consolidated financial statements.
86
AMEREN CORPORATION
CONSOLIDATED BALANCE SHEET
(In millions, except per share amounts)
Current Assets:
ASSETS
Cash and cash equivalents
Accounts receivable – trade (less allowance for doubtful accounts of $29 and $50, respectively)
Unbilled revenue
Miscellaneous accounts receivable
Inventories
Current regulatory assets
Other current assets
Total current assets
Property, Plant, and Equipment, Net
Investments and Other Assets:
Nuclear decommissioning trust fund
Goodwill
Regulatory assets
Pension and other postretirement benefits
Other assets
Total investments and other assets
TOTAL ASSETS
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term debt
Short-term debt
Accounts and wages payable
Interest accrued
Current regulatory liabilities
Other current liabilities
Total current liabilities
Long-term Debt, Net
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes and investment tax credits, net
Regulatory liabilities
Asset retirement obligations
Other deferred credits and liabilities
Total deferred credits and other liabilities
Commitments and Contingencies (Notes 2, 9, and 14)
Shareholders’ Equity:
Common stock, $.01 par value, 400.0 shares authorized – shares outstanding of 257.7 and 253.3,
respectively
Other paid-in capital, principally premium on common stock
Retained earnings
Accumulated other comprehensive income (loss)
Total shareholders’ equity
Noncontrolling Interests
Total equity
TOTAL LIABILITIES AND EQUITY
December 31,
2021
2020
$
$
$
$
8
434
301
85
592
319
229
1,968
29,261
1,159
411
1,289
756
891
4,506
35,735
505
545
1,095
123
113
445
2,826
12,562
3,499
5,848
757
414
10,518
3
6,502
3,182
13
9,700
129
9,829
35,735
$
$
$
$
139
415
269
65
521
109
135
1,653
26,807
982
411
1,100
288
789
3,570
32,030
8
490
958
114
121
489
2,180
11,078
3,211
5,282
696
503
9,692
3
6,179
2,757
(1)
8,938
142
9,080
32,030
The accompanying notes are an integral part of these consolidated financial statements.
87
AMEREN CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
Cash Flows From Operating Activities:
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
Amortization of nuclear fuel
Amortization of debt issuance costs and premium/discounts
Deferred income taxes and investment tax credits, net
Allowance for equity funds used during construction
Stock-based compensation costs
Other
Changes in assets and liabilities:
Receivables
Inventories
Accounts and wages payable
Taxes accrued
Regulatory assets and liabilities
Assets, other
Liabilities, other
Pension and other postretirement benefits
Net cash provided by operating activities
Cash Flows From Investing Activities:
Capital expenditures
Wind generation expenditures
Nuclear fuel expenditures
Purchases of securities – nuclear decommissioning trust fund
Sales and maturities of securities – nuclear decommissioning trust fund
Purchase of bonds
Proceeds from sale of remarketed bonds
Other
Net cash used in investing activities
Cash Flows From Financing Activities:
Dividends on common stock
Dividends paid to noncontrolling interest holders
Short-term debt, net
Maturities of long-term debt
Issuances of long-term debt
Issuances of common stock
Redemptions of Ameren Illinois preferred stock
Employee payroll taxes related to stock-based compensation
Debt issuance costs
Other
Net cash provided by financing activities
Net change in cash, cash equivalents, and restricted cash
Cash, cash equivalents, and restricted cash at beginning of year
Cash, cash equivalents, and restricted cash at end of year
Cash Paid (Refunded) During the Year:
Interest (net of $17, $16, and $20 capitalized, respectively)
Income taxes, net
Year Ended December 31,
2020
2021
2019
$
995
$
877
$
834
1,219
58
23
156
(43)
22
19
(74)
(71)
28
1
(439)
(126)
(74)
(33)
1,661
(2,954)
(525)
(44)
(452)
439
—
—
8
(3,528)
(565)
(5)
55
(8)
1,997
308
(13)
(17)
(18)
(13)
1,721
(146)
301
155
426
(1)
$
$
1,085
68
22
148
(32)
21
22
(47)
(25)
40
34
(254)
(83)
(111)
(38)
1,727
(2,669)
(564)
(66)
(224)
183
—
—
11
(3,329)
(494)
(6)
50
(442)
2,183
476
—
(20)
(20)
—
1,727
125
176
301
383
13
$
$
1,002
79
19
167
(28)
20
(14)
79
(10)
(3)
(8)
164
(59)
(33)
(39)
2,170
(2,411)
—
(31)
(256)
260
(207)
207
3
(2,435)
(472)
(6)
(157)
(580)
1,527
68
—
(29)
(17)
—
334
69
107
176
367
13
$
$
The accompanying notes are an integral part of these consolidated financial statements.
88
AMEREN CORPORATION
CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY
(In millions)
Common Stock:
Beginning of year
Settlement of forward sale agreement through common shares issuance
$
Common stock, end of year
$
3
—
3
$
2
1
3
2
—
2
2021
December 31,
2020
2019
Other Paid-in Capital:
Beginning of year
Settlement of forward sale agreement through common shares issuance
Shares issued under the ATM program
Shares issued under the DRPlus and 401(k) plan
Stock-based compensation activity
Other paid-in capital, end of year
Retained Earnings:
Beginning of year
Net income attributable to Ameren common shareholders
Dividends on common stock
Retained earnings, end of year
Accumulated Other Comprehensive Income (Loss):
Deferred retirement benefit costs, beginning of year
Change in deferred retirement benefit costs
Deferred retirement benefit costs, end of year
Total accumulated other comprehensive gain (loss), end of year
Total Shareholders’ Equity
Noncontrolling Interests:
Beginning of year
Net income attributable to noncontrolling interest holders
Dividends paid to noncontrolling interest holders
Redemptions of Ameren Illinois preferred stock
Noncontrolling interests, end of year
6,179
113
148
47
15
6,502
2,757
990
(565)
3,182
(1)
14
13
13
5,694
424
—
51
10
6,179
2,380
871
(494)
2,757
(17)
16
(1)
(1)
5,627
—
—
68
(1)
5,694
2,024
828
(472)
2,380
(22)
5
(17)
(17)
$
9,700
$
8,938
$
8,059
142
5
(5)
(13)
129
142
6
(6)
—
142
142
6
(6)
—
142
Total Equity
$
9,829
$
9,080
$
8,201
Common stock shares outstanding at beginning of year
Shares issued under forward sale agreement
Shares issued under the ATM program
Shares issued under the DRPlus and 401(k) plan
Shares issued for stock-based compensation
Common stock shares outstanding at end of year
253.3
1.6
1.8
0.5
0.5
257.7
246.2
5.9
—
0.7
0.5
253.3
244.5
—
—
0.9
0.8
246.2
Dividends per common share
$
2.20
$
2.00
$
1.92
The accompanying notes are an integral part of these consolidated financial statements.
89
UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
STATEMENT OF INCOME
(In millions)
$
Operating Revenues:
Electric
Natural gas
Total operating revenues
Operating Expenses:
Fuel
Purchased power
Natural gas purchased for resale
Other operations and maintenance
Depreciation and amortization
Taxes other than income taxes
Total operating expenses
Operating Income
Other Income, Net
Interest Charges
Income Before Income Taxes
Income Taxes
Net Income
Preferred Stock Dividends
Net Income Attributable to Ameren Common Shareholders
$
Year Ended December 31,
2020
2021
2019
3,212
141
3,353
581
227
60
948
632
343
2,791
562
99
137
524
3
521
3
518
$
$
2,984
125
3,109
490
171
43
886
604
328
2,522
587
76
190
473
34
439
3
436
$
$
3,109
134
3,243
535
193
53
960
556
329
2,626
617
58
178
497
68
429
3
426
The accompanying notes as they relate to Ameren Missouri are an integral part of these financial statements.
90
UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
BALANCE SHEET
(In millions, except per share amounts)
Current Assets:
ASSETS
Cash and cash equivalents
Advances to money pool
Accounts receivable – trade (less allowance for doubtful accounts of $13 and $16, respectively)
Accounts receivable – affiliates
Unbilled revenue
Miscellaneous accounts receivable
Inventories
Current regulatory assets
Current collateral assets
Other current assets
Total current assets
Property, Plant, and Equipment, Net
Investments and Other Assets:
Nuclear decommissioning trust fund
Regulatory assets
Pension and other postretirement benefits
Other assets
Total investments and other assets
TOTAL ASSETS
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Current maturities of long-term debt
Short-term debt
Accounts and wages payable
Accounts payable – affiliates
Taxes accrued
Interest accrued
Current asset retirement obligations
Other current liabilities
Total current liabilities
Long-term Debt, Net
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes and investment tax credits, net
Regulatory liabilities
Asset retirement obligations
Other deferred credits and liabilities
Total deferred credits and other liabilities
Commitments and Contingencies (Notes 2, 9, 13, and 14)
Shareholders’ Equity:
Common stock, $5 par value, 150.0 shares authorized – 102.1 shares outstanding
Other paid-in capital, principally premium on common stock
Preferred stock
Retained earnings
Total shareholders’ equity
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
$
$
December 31,
2021
2020
$
$
$
—
—
190
44
142
71
419
127
66
76
1,135
15,296
1,159
523
208
401
2,291
18,722
55
165
631
46
34
60
7
219
1,217
5,564
1,852
3,354
753
71
6,030
136
139
166
57
133
36
386
60
11
68
1,192
13,879
982
347
60
323
1,712
16,783
8
—
501
46
42
53
60
123
833
5,096
1,742
3,110
691
101
5,644
511
2,725
80
2,595
5,911
18,722
$
511
2,518
80
2,101
5,210
16,783
$
The accompanying notes as they relate to Ameren Missouri are an integral part of these financial statements.
91
UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
STATEMENT OF CASH FLOWS
(In millions)
Year Ended December 31,
2020
2021
2019
$
521
$
439
$
429
Cash Flows From Operating Activities:
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
Amortization of nuclear fuel
Amortization of debt issuance costs and premium/discounts
Deferred income taxes and investment tax credits, net
Allowance for equity funds used during construction
Other
Changes in assets and liabilities:
Receivables
Inventories
Accounts and wages payable
Taxes accrued
Regulatory assets and liabilities
Assets, other
Liabilities, other
Pension and other postretirement benefits
Net cash provided by operating activities
Cash Flows From Investing Activities:
Capital expenditures
Wind generation expenditures
Nuclear fuel expenditures
Purchases of securities – nuclear decommissioning trust fund
Sales and maturities of securities – nuclear decommissioning trust fund
Purchase of bonds
Proceeds from sale of remarketed bonds
Money pool advances, net
Other
Net cash used in investing activities
Cash Flows From Financing Activities:
Dividends on common stock
Dividends on preferred stock
Short-term debt, net
Maturities of long-term debt
Issuances of long-term debt
Debt issuance costs
Capital contribution from parent
Net cash provided by financing activities
Net change in cash, cash equivalents, and restricted cash
Cash, cash equivalents, and restricted cash at beginning of year
Cash, cash equivalents, and restricted cash at end of year
Cash Paid During the Year:
Interest (net of $10, $10, and $12 capitalized, respectively)
Income taxes, net
$
$
704
58
6
3
(26)
19
(60)
(32)
28
(27)
(207)
(27)
(29)
(2)
929
(1,490)
(525)
(44)
(452)
439
—
—
139
11
(1,922)
(24)
(3)
165
(8)
524
(5)
207
856
(137)
145
8
205
19
$
$
613
68
6
17
(19)
22
(8)
(11)
26
9
(166)
(2)
(80)
(3)
911
(1,102)
(564)
(66)
(224)
183
—
—
(139)
8
(1,904)
(66)
(3)
(234)
(92)
1,012
(9)
491
1,099
106
39
145
190
25
$
$
564
79
5
(19)
(19)
13
75
(13)
16
(15)
17
(28)
(32)
(5)
1,067
(1,076)
—
(31)
(256)
260
(207)
207
—
8
(1,095)
(430)
(3)
179
(580)
778
(9)
124
59
31
8
39
190
101
The accompanying notes as they relate to Ameren Missouri are an integral part of these financial statements.
92
UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
STATEMENT OF SHAREHOLDERS’ EQUITY
(In millions)
Common Stock
Other Paid-in Capital:
Beginning of year
Capital contribution from parent
Other paid-in capital, end of year
Preferred Stock
Retained Earnings:
Beginning of year
Net income
Dividends on common stock
Dividends on preferred stock
Retained earnings, end of year
2021
December 31,
2020
2019
$
511
$
511
$
511
2,518
207
2,725
80
2,101
521
(24)
(3)
2,595
2,027
491
2,518
80
1,731
439
(66)
(3)
2,101
1,903
124
2,027
80
1,735
429
(430)
(3)
1,731
Total Shareholders’ Equity
$
5,911
$
5,210
$
4,349
The accompanying notes as they relate to Ameren Missouri are an integral part of these financial statements.
93
AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
STATEMENT OF INCOME
(In millions)
$
Operating Revenues:
Electric
Natural gas
Total operating revenues
Operating Expenses:
Purchased power
Natural gas purchased for resale
Other operations and maintenance
Depreciation and amortization
Taxes other than income taxes
Total operating expenses
Operating Income
Other Income, Net
Interest Charges
Income Before Income Taxes
Income Taxes
Net Income
Preferred Stock Dividends
Net Income Attributable to Ameren Common Shareholders
$
Year Ended December 31,
2020
2019
2021
1,938
957
2,895
400
382
820
472
153
2,227
668
66
164
570
143
427
2
425
$
$
1,775
760
2,535
355
229
775
434
140
1,933
602
59
155
506
124
382
3
379
$
$
1,730
797
2,527
368
278
782
406
143
1,977
550
53
147
456
110
346
3
343
The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.
94
AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
BALANCE SHEET
(In millions)
Current Assets:
ASSETS
Cash and cash equivalents
Accounts receivable – trade (less allowance for doubtful accounts of $16 and $34, respectively)
Accounts receivable – affiliates
Unbilled revenue
Miscellaneous accounts receivable
Inventories
Current regulatory assets
Other current assets
Total current assets
Property, Plant, and Equipment, Net
Investments and Other Assets:
Goodwill
Regulatory assets
Pension and other postretirement benefits
Other assets
Total investments and other assets
TOTAL ASSETS
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Current maturities of long-term debt
Short-term debt
Borrowings from money pool
Accounts and wages payable
Accounts payable – affiliates
Customer deposits
Current regulatory liabilities
Other current liabilities
Total current liabilities
Long-term Debt, Net
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes and investment tax credits, net
Regulatory liabilities
Other deferred credits and liabilities
Total deferred credits and other liabilities
Commitments and Contingencies (Notes 2, 13, and 14)
Shareholders’ Equity:
Common stock, no par value, 45.0 shares authorized – 25.5 shares outstanding
Other paid-in capital
Preferred stock
Retained earnings
Total shareholders’ equity
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
$
$
December 31,
2021
2020
$
$
$
—
228
24
159
1
173
180
58
823
12,223
411
752
427
399
1,989
15,035
400
103
—
361
64
52
54
199
1,233
3,992
1,558
2,374
238
4,170
—
234
64
136
12
135
37
29
647
11,201
411
742
280
254
1,687
13,535
—
—
19
363
51
74
88
221
816
3,946
1,367
2,063
377
3,807
—
2,914
49
2,677
5,640
15,035
$
—
2,652
62
2,252
4,966
13,535
$
The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.
95
AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
STATEMENT OF CASH FLOWS
(In millions)
Cash Flows From Operating Activities:
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
Amortization of debt issuance costs and premium/discounts
Deferred income taxes and investment tax credits, net
Allowance for equity funds used during construction
Other
Changes in assets and liabilities:
Receivables
Inventories
Accounts and wages payable
Taxes accrued
Regulatory assets and liabilities
Assets, other
Liabilities, other
Pension and other postretirement benefits
Net cash provided by operating activities
Cash Flows From Investing Activities:
Capital expenditures
Other
Net cash used in investing activities
Cash Flows From Financing Activities:
Dividends on common stock
Dividends on preferred stock
Short-term debt, net
Money pool borrowings, net
Redemption of preferred stock
Issuances of long-term debt
Debt issuance costs
Capital contribution from parent
Other
Net cash provided by financing activities
Net change in cash, cash equivalents, and restricted cash
Cash, cash equivalents, and restricted cash at beginning of year
Cash, cash equivalents, and restricted cash at end of year
Cash Paid During the Year:
Interest (net of $7, $6, and $8 capitalized, respectively)
Income taxes, net
Year Ended December 31,
2020
2019
2021
$
427
$
382
$
346
471
13
165
(17)
10
(17)
(40)
2
22
(222)
(75)
(45)
(32)
662
434
12
118
(13)
21
(28)
(15)
15
(23)
(72)
(76)
(46)
(30)
679
405
12
80
(9)
16
11
2
(19)
21
155
(23)
(5)
(30)
962
(1,432)
(5)
(1,437)
(1,447)
3
(1,444)
(1,208)
3
(1,205)
—
(2)
103
(19)
(13)
449
(6)
262
(13)
761
(14)
147
133
148
(41)
$
$
(9)
(3)
(53)
19
—
373
(4)
464
—
787
22
125
147
137
41
$
$
—
(3)
(19)
—
—
299
(4)
15
—
288
45
80
125
127
4
$
$
The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.
96
AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
STATEMENT OF SHAREHOLDERS’ EQUITY
(In millions)
2021
December 31,
2020
2019
$
—
$
—
$
—
2,652
262
2,914
62
(13)
49
2,252
427
—
(2)
2,677
2,188
464
2,652
62
—
62
1,882
382
(9)
(3)
2,252
2,173
15
2,188
62
—
62
1,539
346
—
(3)
1,882
Common Stock
Other Paid-in Capital:
Beginning of year
Capital contribution from parent
Other paid-in capital, end of year
Preferred Stock:
Beginning of year
Redemptions of preferred stock
Preferred stock, end of year
Retained Earnings:
Beginning of year
Net income
Dividends on common stock
Dividends on preferred stock
Retained earnings, end of year
Total Shareholders’ Equity
$
5,640
$
4,966
$
4,132
The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.
97
AMEREN CORPORATION (Consolidated)
UNION ELECTRIC COMPANY (d/b/a Ameren Missouri)
AMEREN ILLINOIS COMPANY (d/b/a Ameren Illinois)
COMBINED NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General
Ameren, headquartered in St. Louis, Missouri, is a public utility holding company whose primary assets are its equity interests in its
subsidiaries. Ameren’s subsidiaries are separate, independent legal entities with separate businesses, assets, and liabilities. Dividends on
Ameren’s common stock and the payment of expenses by Ameren depend on distributions made to it by its subsidiaries. Ameren’s principal
subsidiaries are listed below. Ameren also has other subsidiaries that conduct other activities, such as providing shared services.
•
•
•
Union Electric Company, doing business as Ameren Missouri, operates a rate-regulated electric generation, transmission, and
distribution business and a rate-regulated natural gas distribution business in Missouri. Ameren Missouri was incorporated in Missouri in
1922 and is successor to a number of companies, the oldest of which was organized in 1881. It is the largest electric utility in the state of
Missouri. It supplies electric and natural gas service to a 24,000-square-mile area in central and eastern Missouri, which includes the
Greater St. Louis area. Ameren Missouri supplies electric service to 1.2 million customers and natural gas service to 0.1 million
customers.
Ameren Illinois Company, doing business as Ameren Illinois, operates rate-regulated electric transmission, electric distribution, and
natural gas distribution businesses in Illinois. Ameren Illinois was incorporated in Illinois in 1923 and is the successor to a number of
companies, the oldest of which was organized in 1902. Ameren Illinois supplies electric and natural gas utility service to a 43,700 square
mile area in central and southern Illinois. Ameren Illinois supplies electric service to 1.2 million customers and natural gas service to
0.8 million customers.
Ameren Transmission Company of Illinois, doing business as ATXI, operates a FERC rate-regulated electric transmission business in
the MISO. ATXI was incorporated in Illinois in 2006. In December 2020, ATXI completed construction of the ninth and final line segment
of the Illinois Rivers transmission line, a MISO-approved electric transmission line. ATXI also operates the Spoon River and Mark Twain
transmission lines, which were placed in service in February 2018 and December 2019, respectively.
The COVID-19 pandemic continues to affect our results of operations, financial position, and liquidity. While our electric sales volumes,
excluding the estimated effects of weather and customer energy-efficiency programs, increased in 2021, compared to 2020, and total sales
volume levels were more comparable to pre-pandemic levels, there has been a shift in sales volumes by customer class, with an increase in
residential sales, and a decrease in commercial and industrial sales. The continued effect of the COVID-19 pandemic on our results of
operations, financial position, and liquidity in subsequent periods will depend on its severity and longevity, future regulatory or legislative
actions with respect thereto, and the resulting impact on business, economic, and capital market conditions.
We continue to assess the impacts the COVID-19 pandemic is having on our businesses, including but not limited to impacts on our
liquidity; demand for residential, commercial, and industrial electric and natural gas services; changes in deferred payment arrangements for
customers; bad debt expense; supply chain operations; the availability of our employees and contractors; counterparty credit; capital
construction; infrastructure operations and maintenance; and pension valuations. While the revenues from Ameren Illinois’ electric distribution
business, residential and small nonresidential customers of Ameren Illinois’ natural gas distribution business, and Ameren Illinois’ and ATXI’s
electric transmission businesses are decoupled from changes in sales volumes, earnings at Ameren Missouri and those associated with
Ameren Illinois’ large nonresidential natural gas customers are exposed to such changes. Regarding uncollectible accounts receivable,
Ameren Illinois’ electric distribution and natural gas distribution businesses have bad debt riders, which provide for recovery of bad debt write-
offs, net of any subsequent recoveries. Ameren Missouri does not have a bad debt rider or tracker, and thus its earnings are exposed to
increases in bad debt expense, absent regulatory relief. However, Ameren Missouri has not experienced and does not expect a material
impact to earnings from increases in bad debt expense. Our customers’ payment for our services has been impacted by the COVID-19
pandemic, resulting in a decrease to cash from operations. For information regarding Ameren Illinois’ suspension and subsequent
reinstatement of customer disconnections and late fee charges for nonpayment and Ameren Missouri’s accounting authority orders related to
the COVID-19 pandemic, see Note 2 – Rate and Regulatory Matters below.
Ameren’s financial statements are prepared on a consolidated basis and therefore include the accounts of its majority-owned
subsidiaries. All intercompany transactions have been eliminated, except as disclosed in Note 13 – Related-party Transactions. Ameren
Missouri and Ameren Illinois have no subsidiaries. All tabular dollar amounts are in millions, unless otherwise indicated.
Our accounting policies conform to GAAP. Our financial statements reflect all adjustments (which include normal, recurring adjustments)
that are necessary, in our opinion, for a fair presentation of our results. The preparation of financial statements in conformity with GAAP
requires management to make certain estimates and assumptions. Such estimates and assumptions affect reported amounts of assets and
98
liabilities, the disclosure of contingent assets and liabilities at the dates of financial statements, and the reported amounts of revenues and
expenses during the reported periods. Actual results could differ from those estimates.
Regulation
Our customer rates are regulated by the MoPSC, the ICC, and the FERC. We defer certain costs as assets pursuant to actions of rate
regulators or because of expectations that we will be able to recover such costs in future rates charged to customers. We also defer certain
amounts as liabilities pursuant to actions of rate regulators or based on the expectation that such amounts will be refunded to customers in
future rates. Regulatory assets and liabilities are amortized consistent with the period of expected regulatory treatment. See Note 2 – Rate
and Regulatory Matters for additional information on our regulatory frameworks, regulatory recovery mechanisms, and regulatory assets and
liabilities recorded at December 31, 2021 and 2020.
We continually assess the recoverability of our respective regulatory assets. Regulatory assets are charged to earnings when it is no
longer probable that such amounts will be recovered through future revenues. To the extent that reductions in customers’ rates or refunds to
customers related to regulatory liabilities are no longer probable, the amounts are credited to earnings.
Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents include short-term, highly liquid investments purchased with an original maturity of three months or less.
Cash and cash equivalents subject to legal or contractual restrictions and not readily available for use for general corporate purposes are
classified as restricted cash. See Note 15 – Supplemental Information for a reconciliation of cash, cash equivalents, and restricted cash
reported within the balance sheets and the statements of cash flows.
Allowance for Doubtful Accounts Receivable
The allowance for doubtful accounts represents our estimate of existing accounts receivable that will ultimately be uncollectible. The
allowance is calculated by applying estimated loss factors to various classes of outstanding receivables, including unbilled revenue. The loss
factors used to estimate uncollectible accounts are based upon both historical collections experience and management’s estimate of future
collections success given the existing and anticipated future collections environment. Ameren Illinois has bad debt riders that adjust rates for
net write-offs of customer accounts receivable above or below those being collected in rates. In 2020, the rider for electric distribution allowed
for recovery of bad debt expense recognized under GAAP.
Inventories
Inventories are recorded at the lower of weighted-average cost or net realizable value. Inventories are capitalized when purchased and
then expensed as consumed or capitalized as property, plant, and equipment when installed, as appropriate. See Note 15 – Supplemental
Information for the components of inventories.
Property, Plant, and Equipment, Net
We capitalize the cost of additions to, and betterments of, units of property, plant, and equipment. The cost includes labor, material,
applicable taxes, and overhead. An allowance for funds used during construction, as discussed below, is also capitalized as a cost of our
rate-regulated assets. Maintenance expenditures are expensed as incurred. Beginning in 2020, maintenance expenses related to scheduled
Callaway nuclear refueling and maintenance outages, which were previously expensed as incurred, are deferred and amortized over the
number of expected months until the completion of the next refueling outage, which historically has been approximately 18 months. When
units of depreciable property are retired, the original costs, and the associated removal cost, net of salvage, are charged to accumulated
depreciation. If environmental expenditures are related to assets currently in use, as in the case of the installation of pollution control
equipment, the cost is capitalized and depreciated over the expected life of the asset. See Asset Retirement Obligations section below and
Note 3 – Property, Plant, and Equipment, Net for additional information.
Ameren Missouri’s cost of nuclear fuel is capitalized as a part of “Property, Plant, and Equipment, Net” on the balance sheet and then
amortized to “Operating Expenses – Fuel” in the statement of income on a unit-of-production basis.
Plant to be Abandoned, Net
When it becomes probable an asset will be retired significantly in advance of its previously expected useful life and in the near term, the
Ameren Companies must assess the probability of full recovery of the remaining net book value of the asset to be abandoned. We recognize
a loss on abandonment when it becomes probable that all or part of the cost of an asset, including a return at the applicable WACC, will be
disallowed from recovery either through customer rates or through the issuance of securitized utility tariff bonds and such amount is
reasonably estimable. An abandonment loss, if any, would equal the difference between the remaining net book value of the asset and the
present value of the expected future cash flows. If the asset is still in service, the net book value is classified as plant to be abandoned, net,
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within “Property, Plant, and Equipment, Net” on the balance sheet. The net book value will be classified as a regulatory asset on the balance
sheet when the asset is no longer in service or as required by a rate order.
In relation to the NSR and Clean Air Act litigation discussed in Note 14 – Commitments and Contingencies, in December 2021, Ameren
Missouri filed a motion with the United States District Court for the Eastern District of Missouri to modify a previously issued remedy order to
allow the retirement of the Rush Island Energy Center in lieu of installing a flue gas desulfurization system. As of December 31, 2021,
Ameren and Ameren Missouri determined that the Rush Island Energy Center met the criteria to be considered probable of abandonment
and have classified its remaining net book value as plant to be abandoned, net, within “Property, Plant, and Equipment, Net” on Ameren’s
and Ameren Missouri’s balance sheets. See Note 3 – Property, Plant, and Equipment, Net for our plant to be abandoned balance as of
December 31, 2021. Ameren Missouri is currently allowed a full recovery of and a full return on its investment in Rush Island Energy Center
and has concluded that no abandonment loss was required as of December 31, 2021. As part of the assessment of any potential future
abandonment loss, consideration will be given to rate and securitization orders issued by the MoPSC to Ameren Missouri and to orders
issued to other Missouri utilities with similar facts.
Depreciation
Depreciation is provided over the estimated lives of the various classes of depreciable property by applying composite rates on a
straight-line basis to the cost basis of such property. The composite rates include a provision for the estimated removal cost of property,
plant, and equipment retired from service, net of salvage. The provision for depreciation for the Ameren Companies in 2021, 2020, and 2019
ranged from 3% to 4% of the average depreciable cost. See Note 3 – Property, Plant, and Equipment, Net for additional information on
estimated depreciable lives.
Allowance for Funds Used During Construction
As a part of “Property, Plant, and Equipment, Net” on the balance sheet, we capitalize allowance for funds used during construction,
which is the cost of borrowed funds and the cost of equity funds (preferred and common shareholders’ equity) applicable to eligible rate-
regulated construction work in progress, in accordance with the utility industry’s accounting practice and GAAP. The amount of allowance for
funds used during construction is calculated using a FERC-prescribed formula based on a rate, which incorporates the average cost of short-
term debt, the average cost of long-term debt, and the cost of equity funds. The portion attributable to borrowed funds is recorded as a
reduction of “Interest Charges” on the statements of income. The portion attributable to equity funds is recorded within “Other Income, Net”
on the statements of income. This accounting practice offsets the effect on earnings of the cost of financing during construction. See
Note 15 – Supplemental Information for the amount of allowance for funds used during construction capitalized and the average rate applied
to eligible construction work in progress.
Allowance for funds used during construction does not represent a current source of cash funds. Under accepted ratemaking practice,
cash recovery of allowance for funds used during construction and other construction costs occurs when completed projects are placed in
service and reflected in customer rates.
Goodwill
Goodwill represents the excess of the purchase price of an acquisition over the fair value of the net assets acquired. Ameren and
Ameren Illinois had goodwill of $411 million at December 31, 2021 and 2020. Ameren has four reporting units: Ameren Missouri, Ameren
Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. Ameren Illinois has three reporting units: Ameren Illinois
Electric Distribution, Ameren Illinois Natural Gas, and Ameren Illinois Transmission. Ameren Illinois Electric Distribution, Ameren Illinois
Natural Gas, and Ameren Illinois Transmission had goodwill of $238 million, $80 million, and $93 million, respectively, at December 31, 2021
and 2020. The Ameren Transmission reporting unit had the same $93 million of goodwill as the Ameren Illinois Transmission reporting unit at
December 31, 2021 and 2020.
Ameren and Ameren Illinois evaluate goodwill for impairment in each of their reporting units as of October 31 each year, or more
frequently if events occur or circumstances change that would more likely than not reduce the fair value of their reporting units below their
carrying amounts. To determine whether the fair value of a reporting unit is more likely than not greater than its carrying amount, Ameren and
Ameren Illinois elect to perform either a qualitative assessment or to bypass the qualitative assessment and perform a quantitative test.
Ameren and Ameren Illinois elected to perform a qualitative assessment for their annual goodwill impairment test conducted as of
October 31, 2021. As part of this qualitative assessment, Ameren and Ameren Illinois evaluated, among other things, macroeconomic
conditions, industry and market considerations such as observable industry market multiples, regulatory frameworks, cost factors, overall
financial performance, and entity-specific events. The results of Ameren’s and Ameren Illinois’ qualitative assessment indicated that it was
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more likely than not that the fair value of each reporting unit exceeded its carrying value as of October 31, 2021, resulting in no impairment of
Ameren’s or Ameren Illinois’ goodwill.
Impairment of Long-lived Assets
We evaluate long-lived assets classified as held and used for impairment when events or changes in circumstances indicate that the
carrying value of such assets may not be recoverable. Whether an impairment has occurred is determined by comparing the estimated
undiscounted cash flows attributable to the assets to the carrying value of the assets. If the carrying value exceeds the undiscounted cash
flows, we recognize an impairment charge equal to the amount by which the carrying value exceeds the estimated fair value of the assets. In
the period in which we determine that an asset meets held for sale criteria, we record an impairment charge to the extent the book value
exceeds its estimated fair value less cost to sell. We did not identify any events or changes in circumstances that indicated that the carrying
value of long-lived assets may not be recoverable in 2021, 2020 or 2019.
Variable Interest Entities
As of December 31, 2021 and 2020, Ameren had unconsolidated variable interests as a limited partner in various equity method
investments, primarily to advance clean and resilient energy technologies, totaling $56 million and $37 million, respectively, included in “Other
assets” on Ameren’s consolidated balance sheet. Any earnings or losses related to these investments are included in “Other Income, Net” on
Ameren’s consolidated statement of income and comprehensive income. Ameren is not the primary beneficiary of these investments because
it does not have the power to direct matters that most significantly affect the activities of these variable interest entities. As of December 31,
2021, the maximum exposure to loss related to these variable interest entities is limited to the investment in these partnerships of $56 million
plus associated outstanding funding commitments of $28 million.
Environmental Costs
Liabilities for environmental costs are recorded on an undiscounted basis when it is probable that a liability has been incurred and the
amount of the liability can be reasonably estimated. Costs are expensed or deferred as a regulatory asset when it is expected that the costs
will be recovered from customers in future rates. See Note 14 – Commitments and Contingencies for additional information on liabilities for
environmental costs.
Asset Retirement Obligations and Removal Costs
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. In subsequent
periods, we adjust AROs for accretion and changes in the estimated fair values of the obligations, with a corresponding increase or decrease
in the asset book value for the fair value changes. Asset book values, reflected within “Property, Plant, and Equipment, Net” on the balance
sheet, are depreciated over the remaining useful life of the related asset. Due to regulatory recovery, that depreciation is deferred as a
regulatory balance. The depreciation of the asset book values at Ameren Missouri was $14 million, $28 million, and $18 million for the years
ended December 31, 2021, 2020, and 2019, respectively, which was deferred as a reduction to the net regulatory liability. The net regulatory
liability also reflects a deferral for the nuclear decommissioning trust fund balance for the Callaway Energy Center. The depreciation deferred
to the regulatory asset at Ameren Illinois was immaterial in each respective period. Uncertainties as to the probability, timing, or amount of
cash expenditures associated with AROs affect our estimates of fair value. Ameren and Ameren Missouri have recorded AROs for retirement
costs associated with decommissioning of Ameren Missouri’s Callaway and wind renewable energy centers, certain Ameren Missouri solar
energy centers, CCR facilities, and river structures at certain energy centers used for unloading coal and circulating water systems.
Additionally, Ameren, Ameren Missouri, and Ameren Illinois have recorded AROs for retirement costs associated with asbestos removal and
the disposal of certain transformers. See Note 15 – Supplemental Information for a reconciliation of the beginning and ending carrying
amounts of AROs.
Estimated funds collected from customers to pay for the future removal cost of property, plant, and equipment retired from service, net of
salvage, represent a cost of removal regulatory liability. See the cost of removal regulatory liability balance in Note 2 – Rate and Regulatory
Matters.
Company-owned Life Insurance
Ameren and Ameren Illinois have company-owned life insurance, which is recorded at the net cash surrender value. The net cash
surrender value is the amount that can be realized under the insurance policies at the balance sheet date. As of December 31, 2021, the
cash surrender value of company-owned life insurance at Ameren and Ameren Illinois was $278 million (December 31, 2020 – $272 million)
and $117 million (December 31, 2020 – $115 million), respectively, while total borrowings against the policies were $109 million
(December 31, 2020 – $107 million) at both Ameren and Ameren Illinois. Ameren and Ameren Illinois have the right to offset the borrowings
against the cash surrender value of the policies and, consequently, present the net asset in “Other assets” on their respective balance
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sheets. The net cash surrender value of Ameren’s company-owned life insurance is affected by the investment performance of a separate
account in which Ameren holds a beneficial interest.
Operating Revenues
We record revenues from contracts with customers for various electric and natural gas services, which primarily consist of retail
distribution, electric transmission, and off-system arrangements. When more than one performance obligation exists in a contract, the
consideration under the contract is allocated to the performance obligations based on the relative standalone selling price.
Electric and natural gas retail distribution revenues are earned when the commodity is delivered to our customers. We accrue an
estimate of electric and natural gas retail distribution revenues for service provided but unbilled at the end of each accounting period. Electric
transmission revenues are earned as electric transmission services are provided. Off-system revenues are primarily comprised of MISO
revenues and wholesale bilateral revenues. MISO revenues include the sale of electricity, capacity, and ancillary services. Wholesale
bilateral revenues include the sale of electricity and capacity. MISO-related electricity and wholesale bilateral electricity revenues are earned
as electricity is delivered. Capacity and ancillary service revenues are earned as services are provided.
Retail distribution, electric transmission, and off-system revenues, including the underlying components described above, represent a
series of goods or services that are substantially the same and have the same pattern of transfer over time to our customers. Revenues from
contracts with customers are equal to the amounts billed and our estimate of electric and natural gas retail distribution services provided but
unbilled at the end of each accounting period. Customers are billed at least monthly, and payments are due less than one month after goods
and/or services are provided. See Note 16 – Segment Information for disaggregated revenue information.
For certain regulatory recovery mechanisms that are alternative revenue programs rather than revenues from contracts with customers,
we recognize revenues that have been authorized for rate recovery, are objectively determinable and probable of recovery, and are expected
to be collected from customers within two years from the end of the year. Our alternative revenue programs include revenue requirement
reconciliations, the MEEIA, the VBA, and the WNAR. These revenues are subsequently recognized as revenues from contracts with
customers when billed, with an offset to alternative revenue program revenues.
As of December 31, 2021 and 2020, our remaining performance obligations were immaterial. The Ameren Companies elected not to
disclose the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied as of the end of the
reporting period for contracts with an initial expected term of one year or less.
Accounting for MISO Transactions
MISO-related purchase and sale transactions are recorded by Ameren, Ameren Missouri, and Ameren Illinois using settlement
information provided by the MISO. Ameren Missouri records these purchase and sale transactions on a net hourly position. Ameren Missouri
records net purchases in a single hour in “Operating Expenses – Purchased power” and net sales in a single hour in “Operating Revenues –
Electric” in its statement of income. Ameren Illinois records net purchases in “Operating Expenses – Purchased power” in its statement of
income to reflect all of its MISO transactions relating to the procurement of power for its customers. On occasion, Ameren Missouri’s and
Ameren Illinois’ prior-period transactions will be resettled outside the routine settlement process because of a change in the MISO’s tariff or a
material interpretation thereof. In these cases, Ameren Missouri and Ameren Illinois recognize revenues and expenses associated with
resettlements once the resettlement is probable and the resettlement amount can be estimated. There were no material MISO resettlements
in 2021, 2020, or 2019.
Stock-based Compensation
Stock-based compensation cost is measured at the grant date based on the fair value of the award, net of an assumed forfeiture rate.
Ameren recognizes as compensation expense the estimated fair value of stock-based compensation on a straight-line basis over the
requisite vesting period. To the extent that actual forfeitures differ from estimated forfeitures, such differences are accounted for as a
cumulative adjustment to compensation expense and recorded in the period that estimates are revised. Compensation cost is ultimately
recognized only for awards for which the requisite service was provided. See Note 11 – Stock-based Compensation for additional
information.
Unamortized Debt Discounts, Premiums, and Issuance Costs
Long-term debt discounts, premiums, and issuance costs are amortized over the lives of the related issuances. Credit agreement fees
are amortized over the term of the agreement.
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Income Taxes
Ameren uses an asset and liability approach for its financial accounting and reporting of income taxes. Deferred tax assets and liabilities
are recognized for transactions that are treated differently for financial reporting and income tax return purposes. These deferred tax assets
and liabilities are based on statutory tax rates.
We expect that regulators will reduce future revenues for deferred tax liabilities that were initially recorded at rates in excess of the
current statutory rate. Therefore, reductions in certain deferred tax liabilities that were recorded because of decreases in the statutory rate
have been credited to a regulatory liability. A regulatory asset has been established to recognize the probable recovery through future
customer rates of tax benefits related to the equity component of allowance for funds used during construction, as well as the effects of tax
rate increases. To the extent deferred tax balances are included in rate base, the revaluation of deferred taxes is recorded as a regulatory
asset or liability on the balance sheet and will be collected from, or refunded to, customers. For deferred tax balances not included in rate
base, the revaluation of deferred taxes is recorded as an adjustment to income tax expense on the income statement. See Note 12 – Income
Taxes for further information regarding the revaluation of deferred taxes related to Missouri state corporate income tax rate changes.
Ameren Missouri, Ameren Illinois, and all the other Ameren subsidiary companies are parties to a tax allocation agreement with Ameren
(parent) that provides for the allocation of consolidated tax liabilities. The tax allocation agreement specifies that each party be allocated an
amount of tax using a stand-alone calculation, which is similar to what would be owed or refunded had the party been separately subject to
tax without considering the impact of consolidation. Any net benefit attributable to Ameren (parent) is reallocated to the other parties. This
reallocation is treated as a capital contribution to the party receiving the benefit. See Note 13 – Related-party Transactions for information
regarding capital contributions under the tax allocation agreement.
NOTE 2 – RATE AND REGULATORY MATTERS
Below is a summary of our regulatory frameworks and significant regulatory proceedings and related lawsuits. We are unable to predict
the ultimate outcome of these matters, the timing of final decisions of the various agencies and courts, or the effect on our results of
operations, financial position, or liquidity.
Regulatory Frameworks
The following table presents the regulatory frameworks and significant regulatory recovery mechanisms for each of Ameren’s rate-
regulated businesses, which are discussed in more detail below:
Regulatory framework
Ameren Missouri
• Historical test year ratemaking
• Natural gas revenues for
residential customers adjusted
for sales volume deviations
resulting from weather through
the WNAR
Regulatory mechanisms
• PISA
Riders:
• RESRAM
• FAC
• MEEIA
• PGA
• WNAR
Trackers:
• Pension and postretirement
benefit costs
• Certain excess deferred
income taxes
• Renewable energy standard
costs
Ameren Illinois’ electric
distribution business
Ameren Illinois’ natural gas
delivery service business
Ameren Illinois’ and ATXI’s
electric transmission business
• Future test year ratemaking
• Revenues for residential and
small nonresidential
customers decoupled from
sales volumes through the
VBA
• Formula ratemaking
• Initial rates based on future
test year
• Revenues decoupled from
sales volumes
• Revenue requirement
reconciliation adjustment
Riders:
• QIP
• PGA
• VBA
• Energy-efficiency program
costs
• Certain environmental costs
• Bad debt write-offs
• Invested capital taxes
• Performance-based formula
ratemaking
• Initial rates based on historical
test year and expected net
plant additions for the year
before rates become effective
• Revenues decoupled from
sales volumes
• Electric distribution service
and energy-efficiency revenue
requirement reconciliation
adjustments
Riders:
• Power procurement
• Transmission services
• Renewable energy credit
compliance
• Zero emission credits
• Certain environmental costs
• Bad debt write-offs
• Costs of certain asbestos-
related claims
Missouri
The MoPSC regulates rates and other matters for Ameren Missouri’s electric service and natural gas distribution businesses. The rates
Ameren Missouri charges customers for these services are established in a traditional regulatory rate review, which takes up to 11 months to
complete, based on a historical test year and the revenue requirement established in the review.
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Ameren Missouri has recovery mechanisms, including the RESRAM, FAC, MEEIA, PGA, and WNAR, that allow customer rates to be
adjusted without a traditional regulatory rate review. These riders, along with the PISA, each described in more detail below, partially mitigate
the effects of regulatory lag. Ameren Missouri also employs other recovery mechanisms, including a pension and postretirement benefit cost
tracker, an uncertain income tax position tracker, a tracker on certain excess deferred income taxes, and a renewable energy standard cost
tracker. Each of these trackers allows Ameren Missouri to defer the difference between actual costs incurred and costs included in customer
rates as a regulatory asset or regulatory liability, with the difference expected to be reflected in base rates in a subsequent MoPSC rate order.
Ameren Missouri’s cost recovery under any of its recovery mechanisms is subject to MoPSC prudence reviews.
The PISA permits Ameren Missouri to defer and recover 85% of the depreciation expense and earn a return at the applicable WACC on
investments in certain property, plant, and equipment placed in service, and not included in base rates. The regulatory asset for accumulated
PISA deferrals also earns a return at the applicable WACC, with all approved PISA deferrals added to rate base prospectively and recovered
over a period of 20 years following a regulatory rate review. Additionally, under the RESRAM, Ameren Missouri is permitted to recover the
15% of depreciation expense not recovered under the PISA, and earn a return at the applicable WACC for investments in renewable
generation plant placed in service to comply with Missouri’s renewable energy standard. The RESRAM deferrals are a regulatory asset until
they are included in customer rates and collected in a subsequent period. Those investments not eligible for recovery under the PISA and the
remaining 15% of certain property, plant, and equipment placed in service, unless eligible for recovery under the RESRAM, remain subject to
regulatory lag. Ameren Missouri defers its cost of debt relating to PISA eligible investments as an offset to interest charges with the difference
between the applicable WACC and its cost of debt recognized in revenues when recovery of such deferrals is reflected in customer rates.
Under Missouri law, as a result of the PISA election, additional provisions apply to Ameren Missouri. These provisions include limiting
Ameren Missouri’s rate increases to a 2.85% compound annual growth rate in the average overall customer rate per kilowatthour, based on
the electric rates that became effective in April 2017, less half of the annual savings from the TCJA that was passed on to customers as
approved in a July 2018 MoPSC order. If rate changes from the FAC or the RESRAM riders would cause rates to temporarily exceed the
2.85% rate cap, the overage would be deferred for future recovery in the next regulatory rate review; however, rates established in such
regulatory rate review would be subject to the rate cap. Any deferred overages approved for recovery would be recovered in a manner
consistent with costs recovered under the PISA. Excluding customer rates under the MEEIA rider, which are not subject to the rate cap,
Ameren Missouri would incur a penalty equal to the amount of deferred overage that would cause customer rates to exceed the 2.85% rate
cap. Ameren Missouri did not incur a penalty related to the rate cap in 2021. Both the rate increase limitation and the PISA are effective
through December 2023. Missouri law provides for the ability to use the PISA, if Ameren Missouri requests and receives MoPSC approval for
extension, through December 2028.
The RESRAM permits Ameren Missouri to recover or refund, through customer rates, the difference between the cost of compliance, net
of renewable tax credits, with Missouri’s renewable energy standard and the amount set in base rates. Effective February 28, 2022, all off-
system sales from the High Prairie Renewable and Atchison Renewable energy centers will be included in the RESRAM. Previously, 95% of
these sales were included in the FAC and 5% were included in the RESRAM. Customer rates are adjusted for the RESRAM on an annual
basis without a traditional regulatory rate review, subject to MoPSC prudence reviews. The difference between actual compliance costs and
costs billed to customers in a given period is deferred as a regulatory asset or liability. The deferred amount is either billed or refunded to
customers in a subsequent period. RESRAM regulatory assets earn carrying costs at short-term interest rates. The RESRAM permits
Ameren Missouri to recover investments in wind generation and other renewables related to compliance with Missouri’s renewable energy
standard, and earn a return at the applicable WACC on those investments not already provided for in customer rates or any other recovery
mechanism, such as the renewable energy standard cost tracker. The renewable energy standard cost tracker allows Ameren Missouri to
defer differences between actual costs primarily associated with the Maryland Heights Energy Center and renewable energy credits obtained
through a 102-MW power purchase agreement with a wind farm operator, which expires in 2024, and those costs included in customer rates.
The FAC permits Ameren Missouri to recover or refund, through customer rates, 95% of the variance in net energy costs from the
amount set in base rates without a traditional regulatory rate review, subject to MoPSC prudence reviews, with the remaining 5% of changes
retained by Ameren Missouri. As such, Ameren Missouri’s results of operations are affected by the 5% not recovered or refunded under the
FAC. The 95% variance in net energy costs in a given period is deferred as a regulatory asset or liability, and either billed or refunded to
customers in a subsequent period. FAC regulatory assets earn carrying costs at short-term interest rates. Ameren Missouri’s base rates for
electric service are required to be reset at least every four years to allow for continued use of the FAC.
The MEEIA permits Ameren Missouri to recover customer energy-efficiency program costs, the related lost electric margins, and any
performance incentive through the MEEIA without a traditional regulatory rate review, subject to MoPSC prudence reviews. MEEIA assets
earn carrying costs at short-term interest rates.
Ameren Missouri is a member of the MISO, and its transmission rate is calculated in accordance with the MISO Open Access
Transmission, Energy, and Operating Reserve Markets Tariff. The FERC regulates the rates charged and the terms and conditions for
wholesale electric transmission service. The transmission rate update each June is based on Ameren Missouri’s actual historical cost from
the prior calendar year. This rate is not directly charged to Missouri retail customers because, in Missouri, the revenue requirement used to
set bundled retail base rates includes an amount for transmission-related costs and revenues.
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The PGA allows Ameren Missouri to recover costs of natural gas purchased on behalf of its customers without a traditional regulatory
rate review, subject to MoPSC prudence reviews. These pass-through purchased gas costs do not affect Ameren Missouri’s natural gas
margins, as any change in costs is offset by a corresponding change in revenues. The difference between actual natural gas costs and costs
billed to customers in a given period is deferred as a regulatory asset or liability. The deferred amount is either billed or refunded to
customers in a subsequent period. PGA regulatory assets earn carrying costs at short-term interest rates. The WNAR will allow Ameren
Missouri to adjust natural gas delivery service rates charged to residential customers without a traditional regulatory rate review, subject to
MoPSC prudence reviews, when deviations from normal weather conditions cause natural gas revenues to vary from the related revenue
requirement approved by the MoPSC in the previous regulatory rate review. The impact of deviations from normal weather on natural gas
delivery service revenues billed to residential customers in a given period will be deferred as a regulatory asset or liability. WNAR regulatory
assets will earn carrying costs at short-term interest rates. The deferred amount will either be billed or refunded to residential customers in a
subsequent period. The WNAR was approved by the December 2021 MoPSC natural gas rate order discussed below, and will replace the
DCA effective February 28, 2022.
Illinois
The ICC regulates rates and other matters for Ameren Illinois’ electric distribution service and natural gas distribution businesses. The
rates Ameren Illinois charges customers for electric distribution service are calculated under a performance-based formula ratemaking
framework pursuant to the IEIMA. Pursuant to the IETL and an order issued by the ICC in March 2021, Ameren Illinois expects to use the
current IEIMA formula framework to establish annual customer rates effective through 2023 and reconcile the related revenue requirements,
and anticipates filing an MYRP by mid-January 2023, with rates effective beginning in 2024. By law, the decoupling provisions extend beyond
the end of existing performance-based formula ratemaking, which ensures that Ameren Illinois’ electric distribution revenues authorized in a
regulatory rate review are not affected by changes in sales volumes. See below for additional information regarding the IETL, the MYRP, and
the March 2021 ICC order. The rates Ameren Illinois charges customers for natural gas distribution service are established in a traditional
regulatory rate review, which takes up to 11 months to complete, based on a future test year and the revenue requirement established in the
review.
Ameren Illinois’ election to use the electric distribution service performance-based formula ratemaking framework allowed by state law,
described below, permits Ameren Illinois to adjust customer rates to recover the cost of electric distribution service on an annual basis.
Ameren Illinois’ electric distribution service also has other cost recovery mechanisms in place that allow customer rates to be adjusted
without a traditional regulatory rate review. Ameren Illinois’ electric distribution service business has riders for power procurement and
transmission services incurred on behalf of its customers, renewable energy credit compliance, zero emission credits, and certain
environmental costs, as well as bad debt write-offs and the costs of certain asbestos-related claims not recovered in base rates. These pass-
through costs do not affect Ameren Illinois’ net income, as any change in costs is offset by a corresponding change in revenues. Ameren
Illinois’ cost recovery under any of its recovery mechanisms is subject to ICC prudence reviews.
Ameren Illinois’ electric distribution service performance-based formula ratemaking framework under the IEIMA allows Ameren Illinois to
reconcile electric distribution service rates to its actual revenue requirement on an annual basis. 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. The regulatory balance is then collected from,
or refunded to, customers within two years from the end of the year. In addition, Ameren Illinois’ electric customer energy-efficiency rider
provides Ameren Illinois’ electric distribution service business with recovery of, and return on, energy-efficiency investments. Under formula
ratemaking for both its electric distribution service and its electric energy-efficiency investments, the revenue requirements are based on
recoverable costs, year-end rate base, and a year-end ratemaking capital structure, and earn a return at the applicable WACC. The ROE
component of the applicable WACC is based on the annual average of the monthly yields of the 30-year United States Treasury bonds plus
580 basis points and any performance-related basis point adjustments, described in more detail below. Therefore, Ameren Illinois’ annual
ROE for its electric distribution business is directly correlated to the yields on such bonds. In addition, regulatory assets applicable to formula
ratemaking for both electric distribution service and electric energy-efficiency investments earn a return at the applicable WACC. However,
Ameren Illinois recognizes the cost of debt on these regulatory assets in revenue, instead of the applicable WACC, with the difference
recognized in revenues when recovery of such regulatory assets is reflected in customer rates.
Ameren Illinois’ electric distribution service business is also subject to performance standards. Failure to achieve the standards would
result in a reduction in the company’s allowed ROE calculated under the formula ratemaking recovery mechanism. The performance
standards applicable to electric distribution service under the IEIMA include improvements in service reliability to reduce both the frequency
and duration of outages, a reduction in the number of estimated bills, a reduction of consumption from inactive meters, and a reduction in bad
debt expense. The allowed ROE for electric distribution service may be decreased for penalties up to 38 basis points in 2022 and up to 10
basis points in 2023 if these performance standards are not met. 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. In 2021, 2020, and
2019, there were no performance-related basis point adjustments that materially affected financial results.
105
Ameren Illinois’ natural gas distribution business has recovery mechanisms, including the QIP, PGA, and VBA, that allow customer rates
to be adjusted without a traditional regulatory rate review. These riders, described in more detail below, mitigate the effects of regulatory lag.
Ameren Illinois employs other riders for natural gas customer energy-efficiency program costs and certain environmental costs, as well as
bad debt write-offs and invested capital taxes not recovered in base rates. Pass-through costs under the riders do not affect Ameren Illinois’
net income, as any change in costs is offset by a corresponding change in revenues. Ameren Illinois’ cost recovery under any of its recovery
mechanisms is subject to ICC prudence reviews.
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. Eligible natural gas
investments include projects to improve safety and reliability and modernization investments, such as smart meters. The deferrals are
recorded as a regulatory asset, with recovery beginning two months after the qualifying natural gas plant is placed in service and continuing
until such plant is included in base rates in a natural gas delivery service rate order. Ameren Illinois’ QIP is subject to a rate impact limitation
of a cumulative 4% per year since the most recent delivery service rate order, with no single year exceeding 5.5%. If the rate impact limitation
was met in a particular year, the amount of rate base causing the QIP rate to exceed the limitation would be exposed to regulatory lag until a
year when that amount could be recovered under QIP or is added to rate base as a part of a regulatory rate review. Upon issuance of a
natural gas delivery service rate order, QIP rate base is transferred to base rates and the QIP is reset to zero, which mitigates the risk that
the QIP will exceed its statutory limitations in future years and ensures timely recovery of capital investments. Without legislative action, the
QIP will expire after December 2023.
The PGA allows Ameren Illinois to recover costs of natural gas purchased on behalf of its customers without a traditional regulatory rate
review, subject to ICC prudence reviews. These pass-through purchased gas costs do not affect Ameren Illinois natural gas margins, as any
change in costs is offset by a corresponding change in revenues. The difference between actual natural gas costs and costs billed to
customers in a given period is deferred as a regulatory asset or liability. The deferred amount is either billed or refunded to customers in a
subsequent period. PGA regulatory assets earn carrying costs at short-term interest rates. The VBA ensures recoverability of the natural gas
distribution service revenue requirement that is dependent on sales volumes for residential and small nonresidential customers. For these
rate classes, the VBA allows Ameren Illinois to adjust natural gas distribution service rates without a traditional regulatory rate review when
changes occur in sales volumes from those volumes approved by the ICC in a previous regulatory rate review. The difference between
allowed sales revenues and amounts billed to customers in a given period is deferred as a regulatory asset or liability. The deferred amount
is collected from, or refunded to, customers in a subsequent period. VBA regulatory assets for a given year that are not fully collected by the
end of the following year begin earning carrying costs at short-term interest rates.
Federal
The FERC regulates rates and other matters for Ameren Illinois’ transmission business and ATXI, as well as for Ameren Missouri. See
discussion above related to Ameren Missouri. Both Ameren Illinois and ATXI are members of the MISO, and their transmission rates are
calculated in accordance with the MISO Open Access Transmission, Energy, and Operating Reserve Markets Tariff. Ameren Illinois and
ATXI have received FERC approval to use a company-specific, forward-looking formula ratemaking framework in setting their transmission
rates. These forward-looking rates are updated annually and become effective each January with forecasted information. The formula rate
framework provides for an annual reconciliation of the electric transmission service revenue requirement, which reflects the actual
recoverable costs incurred and the 13-month average rate base for a given year, with the revenue requirement in customer rates, including
an allowed ROE. 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. The regulatory balance is collected from, or refunded to, customers within two years from the end of the year. FERC revenue
requirement reconciliation adjustment regulatory assets earn carrying costs at each company’s short-term interest rates. In addition, the
FERC has approved transmission rate incentives, including a 50 basis point incentive adder to the allowed base ROE for Ameren Illinois and
ATXI for participation in an RTO.
Proceedings and Updates
Missouri
December 2021 MoPSC Electric Rate Order
In December 2021, the MoPSC issued an order in Ameren Missouri’s 2021 electric service regulatory rate review, approving
nonunanimous stipulations and agreements. The order will result in an increase of $220 million to Ameren Missouri’s annual revenue
requirement for electric retail service. The approved revenue requirement is based on a rate base of $10.2 billion, infrastructure investments
as of September 30, 2021, and a change in the depreciable lives of the Sioux and Rush Island energy centers’ assets consistent with Ameren
Missouri’s 2020 IRP. The order did not specify an ROE, but specified that Ameren Missouri’s September 30, 2021 capital structure, which
was composed of 51.97% common equity, will be used in the PISA and RESRAM. The order provides for the continued use of the FAC and
trackers for pension and postretirement benefits, uncertain income tax positions, certain excess deferred income taxes, and renewable
106
energy standard costs that the MoPSC previously authorized in earlier electric rate orders. The order also changed annualized depreciation,
regulatory asset and liability amortization amounts, and the base level of expenses for trackers. On an annualized basis, these changes
reflect approximate increases in depreciation and amortization of $140 million and other operating and maintenance expenses of $40 million.
As a result of the order, all off-system sales resulting from the High Prairie Renewable and Atchison Renewable energy centers will be
included in the RESRAM beginning February 28, 2022. Prior to this change, 95% of these sales were included in the FAC and 5% were
included in the RESRAM. The order also establishes a five-year recovery period for $61 million of certain costs associated with the Meramec
Energy Center, which is expected to be retired in 2022. The new rates, base level of expenses, and amortizations will become effective on
February 28, 2022.
MoPSC Staff Review of Planned Rush Island Energy Center Retirement
In February 2022, the MoPSC issued an order directing the MoPSC staff to review Ameren Missouri’s planned accelerated retirement of
the Rush Island Energy Center as a result of the NSR and Clean Air Act Litigation discussed in Note 14 – Commitments and Contingencies.
The MoPSC staff’s review will include potential impacts on the reliability and cost of Ameren Missouri’s service to its customers, Ameren
Missouri’s plans to mitigate the customer impacts of the accelerated retirement, and the prudence of Ameren Missouri’s actions and
decisions with regard to the Rush Island Energy Center, among other things. The MoPSC staff is under no deadline to complete this review.
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.
December 2021 MoPSC Natural Gas Rate Order
In December 2021, the MoPSC issued an order in Ameren Missouri’s 2021 natural gas delivery service regulatory rate review, approving
nonunanimous stipulations and agreements. The order will result in an increase of $5 million to Ameren Missouri’s annual revenue
requirement for natural gas delivery service. The approved revenue requirement is based on a rate base of $313 million and infrastructure
investments as of September 30, 2021. The order did not specify an ROE or a capital structure. The order provides for the continued use of
the PGA and trackers for pension and postretirement benefits and certain excess deferred income taxes that the MoPSC previously
authorized in earlier natural gas rate orders. The order also authorizes the use of the WNAR, which replaces the DCA and is discussed
above. The new rates will become effective on February 28, 2022.
Accounting Authority Orders Related to COVID-19 Pandemic Costs
In March 2021, the MoPSC issued orders approving nonunanimous stipulation and agreements related to Ameren Missouri’s electric
and natural gas service accounting authority order requests. The orders allowed Ameren Missouri to accumulate $9 million of certain costs
incurred related to the COVID-19 pandemic, net of cost savings, as well as forgone customer late fee and reconnection fee revenues from
March 2020 to March 2021. The accumulated costs and forgone customer late fee and reconnection fee revenues were approved for
recovery in the MoPSC’s December 2021 electric and natural gas rate orders discussed above. In March 2021, Ameren Missouri deferred
other operations and maintenance expenses of $5 million as a regulatory asset related to the accounting authority orders and will amortize
the balance over a five-year period once new rates become effective on February 28, 2022. Ameren Missouri will recognize the remaining
$4 million associated with forgone customer late fee and reconnection fee revenue when billed to customers over the five-year period
beginning on February 28, 2022.
MEEIA
In September 2021, the MoPSC issued an order approving Ameren Missouri’s energy savings results for the second year of the MEEIA
2019 program. As a result of this order and MoPSC orders issued in September 2017, October 2018, January 2019, September 2019, and
August 2020, and in accordance with revenue recognition guidance, Ameren Missouri recognized revenues of $9 million, $6 million, and
$37 million in 2021, 2020, and 2019 respectively.
In October 2021, the MoPSC issued an order approving Ameren Missouri’s request to implement the 2023 program year of its MEEIA
2019 program. The order established performance incentives that would provide Ameren Missouri an opportunity to earn additional revenues,
including $13 million if Ameren Missouri achieves certain energy-efficiency goals during the 2023 program year. Ameren Missouri intends to
invest $75 million in energy-efficiency programs during the 2023 program year.
Extension of PGA Recovery
In October 2021, the MoPSC issued an order allowing Ameren Missouri to extend the collection period for the cumulative PGA under-
recovery as of August 2021, which includes the February 2021 under-recovery of $53 million, from 12 months to 36 months beginning
November 2021, to lessen the impact on customer rates. Similar to other deferrals under the PGA, the deferral associated with the
February 2021 under-recovery earns carrying costs at short-term interest rates.
107
Illinois
IETL
The IETL was enacted in September 2021. 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, among other things. Ameren Illinois has the option to file for an MYRP every four years. Subject to a constructive outcome
regarding the ICC’s determination of performance metrics, Ameren Illinois anticipates filing an MYRP for rates effective beginning in 2024. If it
does not file by mid-January 2023, its next opportunity to file an MYRP would be for rates effective beginning in 2028. Ameren Illinois expects
to continue to use the current IEIMA performance-based formula ratemaking framework to establish annual customer rates effective through
2023 and reconcile the related revenue requirements. In order to utilize the IEIMA reconciliation, Ameren Illinois must file either a traditional
regulatory rate review or an MYRP pursuant to the IETL by mid-January 2023.
Under the MYRP, the ICC would approve base rates for electric distribution service to be charged to customers for each calendar year
of a four-year period. The base rates for a particular calendar year would be based on forecasted recoverable costs and an ICC-determined
ROE applied to Ameren Illinois’ forecasted average annual rate base using a forecasted capital structure, with a common equity ratio of up to
50% being deemed prudent and reasonable by law and a higher equity ratio requiring specific ICC approval. The ROE determined by the ICC
is applicable to each calendar year of the four-year period. Under a traditional regulatory rate review, the revenue requirement may be based
on a future test year and would include an ROE determined by the ICC. Ameren Illinois’ existing riders will remain effective whether it elects
to file an MYRP or a traditional regulatory rate review. Additionally, electric distribution service revenues would continue to be decoupled from
sales volumes under either election.
The MYRP would also allow Ameren Illinois to reconcile electric distribution service rates to its actual revenue requirement on an annual
basis, subject to a reconciliation cap, which provides that the actual revenue requirement does not exceed 105% of the annual revenue
requirement approved by the ICC. 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 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 regulatory assets. The reconciliation cap would also exclude costs recovered through riders
outside of base rates, such as riders for electric energy-efficiency investments, power procurement and transmission services, renewable
energy credit compliance, zero emission credits, certain environmental costs, and bad debt write-offs, among others. 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. Additionally, the ICC-
determined ROE in the MYRP would be subject to annual adjustments during the four-year period based on certain performance metrics
relating to delivery system reliability, supplier diversity, affordability of customer delivery service cost, customer service performance,
timeliness of response to customer requests for interconnection of distributed energy resources, and reductions in peak load due to demand
response programs, with aggregate symmetrical performance-based ROE incentives and penalties ranging from 20 to 60 basis points
annually. In January 2022, Ameren Illinois filed a request with the ICC proposing performance metrics that would be used in determining
ROE incentives and penalties. The ICC is required to issue an order on this matter by September 30, 2022. Excluding potential phase-in of
the initial rate increase discussed below, if a given year’s revenue amount collected from customers varies from the approved revenue
requirement, an adjustment would be 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. The regulatory balance would then be collected from, or refunded to,
customers within two years from the end of the applicable annual period.
Under an MYRP, the IETL permits any initial rate increase to be phased in, with at least 50% of the first annual period’s approved rate
increase reflected in rates in the first annual period, with the remaining portion deferred as a regulatory asset and collected from customers
over a period not to exceed two years beginning within one year after the second annual period’s rates are effective. Ameren Illinois
recognizes revenues when amounts are expected to be collected from customers within two years from the end of an applicable year.
The IETL contains other provisions in addition to the ratemaking impacts discussed above. The law permits Ameren Illinois to invest up
to $20 million in each of two solar generation and battery storage pilot projects in Illinois. Additionally, the law increases the existing customer
surcharge for renewable energy resources, which funds IPA renewable energy credit procurement events. As a result, Ameren Illinois
expects additional annual revenues of approximately $100 million to be collected, beginning in February 2022, under the rider for renewable
energy credit compliance. It also establishes an Energy Transition Assistance Fund to support economic and workforce development
programs designed to assist the state of Illinois with its transition to clean energy sources. The fund will be subsidized through customer
surcharges collected by electric utilities operating in the state, including Ameren Illinois, and will be remitted in the month following collection
to an Illinois state agency. Ameren Illinois expects to collect up to $25 million annually related to this fund, beginning in January 2022. The
IETL also requires Ameren Illinois to file a multi-year integrated grid plan with the ICC to ensure electric distribution infrastructure investments
align with the state of Illinois’ renewable energy, climate, and environmental goals, and to support grid modernization, clean energy, and
energy efficiency, while providing electric distribution service to customers at affordable rates, among other things. The first multi-year
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integrated grid plan is required to be filed by mid-January 2023, with the next filing required by mid-January 2026, and every four years
thereafter.
See Note 14 – Commitments and Contingencies for additional information on emission standards established by the IETL that will limit
the operations of Ameren Missouri’s natural gas-fired energy centers located in the state of Illinois.
Electric Distribution Service Rate Reconciliation Tariff
In March 2021, the ICC issued an order approving Ameren Illinois’ requested tariff to reconcile its electric distribution service revenue
requirement once Ameren Illinois ceases to update customer rates under performance-based formula ratemaking. The last update under
such ratemaking is anticipated to be for 2023 customer rates. The tariff would allow Ameren Illinois to reconcile its revenue requirement for
customer rates established for 2022 and 2023. To utilize the reconciliation, Ameren Illinois is required to file a request to update its electric
distribution service rates through either a traditional regulatory rate review, which may be based on a future test year and would reflect a
proposed ROE subject to ICC approval, or through the filing of an MYRP, which Ameren Illinois expects to file for rates effective beginning in
2024 pursuant to the IETL as described above. The rate update request would need to be filed by mid-January 2023. Pursuant to the order,
Ameren Illinois’ 2022 and 2023 revenues would 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. The revenue requirement reconciliation adjustment would be collected from, or refunded to, customers within two years
from the end of the reconciled year.
Electric Distribution Service Rates Under IEIMA
In December 2021, the ICC issued an order in Ameren Illinois’ annual update filing that approved a $58 million increase in Ameren
Illinois’ electric distribution service rates beginning in January 2022. This order reflected an increase to the annual performance-based
formula rate based on 2020 actual recoverable costs and expected net plant additions for 2021, an increase to include the 2020 revenue
requirement reconciliation adjustment including a capital structure composed of 51% common equity, and an increase for the conclusion of
the 2019 revenue requirement reconciliation adjustment, which was fully refunded to customers in 2021, consistent with the ICC’s December
2020 annual update filing order.
Electric Customer Energy-Efficiency Investments
In December 2021, the ICC issued an order in Ameren Illinois’ annual update filing that approved electric customer energy-efficiency
rates of $61 million beginning in January 2022, which represents an increase of $10 million from 2021 rates.
In July 2021, the ICC issued an order approving Ameren Illinois’ energy-efficiency plan that includes annual investments in electric
energy-efficiency programs of approximately $100 million per year from 2022 through 2025. Pursuant to the IETL, the planned annual
investments in electric energy-efficiency programs will increase to approximately $120 million. Ameren Illinois expects to file a revised
energy-efficiency plan with the ICC by early March 2022 to reflect the expected increased level of annual investments. The ICC has the ability
to reduce the amount of electric energy-efficiency savings goals in future plan program years if there are insufficient cost-effective programs
available, which could reduce the investments in electric energy-efficiency programs. The electric energy-efficiency program investments and
the return on those investments are collected from customers through a rider and are not recovered through the electric distribution service
performance-based formula ratemaking framework.
QIP Reconciliation Hearings
In March 2021, the ICC issued an order approving Ameren Illinois’ QIP reconciliation for 2018. The ICC also found that Ameren Illinois’
natural gas capital investments recovered under the QIP during 2018 were accurate and prudent. The ICC order effectively dismissed the
Illinois Attorney General’s office challenge with respect to 2018 capital investments.
In March 2020, Ameren Illinois filed a request with the ICC for a reconciliation hearing to determine the accuracy and prudence of
natural gas capital investments recovered under the QIP rider during 2019. In August 2021, the Illinois Attorney General’s office challenged
the recovery of capital investments that were made during 2019, alleging that the ICC should disallow approximately $70 million in natural
gas capital investments as improper and imprudent, providing a potential over-recovery of approximately $3 million in 2019. In August and
December 2021, the ICC staff filed testimony that supports the prudence and reasonableness of the capital investments made during 2019.
Ameren Illinois’ 2019 QIP rate recovery request under review by the ICC is within the rate increase limitations allowed by law. The ICC is
under no deadline to issue an order in this proceeding.
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Service Disconnection Moratorium
From March 2020 through March 2021, the ICC limited disconnection activities and late fees for customer nonpayment to varying
degrees based on customer class. In March 2021, the ICC issued an order allowing Ameren Illinois to resume disconnection activities for all
residential customers through a phased-in approach, which began in April 2021 for customers with the largest past due balances and in June
2021 for all remaining residential customers. The March 2021 order also required Ameren Illinois to offer deferred payment arrangements
extending to 18 months to all residential customers through June 2021. In addition, the order requires Ameren Illinois to extend the financial
assistance program established by a June 2020 ICC order through 2021. Ameren Illinois is allowed to recover up to $4 million in costs
incurred during 2021 related to this financial assistance program. These costs will be deferred as regulatory assets and the portion
associated with Ameren Illinois’ electric distribution business will be recovered through its bad debt rider and the portion associated with its
natural gas distribution business will be recovered through a special purpose rider.
Federal
Transmission Formula Rate Revisions
In February 2020, the MISO, on behalf of Ameren Missouri, Ameren Illinois, and ATXI, filed requests with the FERC to revise each
company’s transmission formula rate calculations with respect to the calculation used for materials and supplies inventories included in rate
base. In May 2020, the FERC issued orders approving the revisions prospectively. In addition, the FERC declined to order refunds for earlier
periods, as requested by intervenors in Ameren Illinois’ filing, but directed its audit staff to review historical rate recovery in connection with an
ongoing FERC audit. In June 2020, Ameren Missouri, Ameren Illinois, and ATXI filed requests for rehearing arguing, among other things, the
revisions should be applied retrospectively to include the period January 1, 2019, to June 1, 2020, and that the FERC should not require
refunds for periods prior to 2019. In July 2020, the FERC denied the rehearing requests without addressing the issues raised. In July 2020,
Ameren Missouri, Ameren Illinois, and ATXI filed an appeal of the July 2020 rehearing denials to the United States Court of Appeals for the
District of Columbia Circuit, which is under no deadline to address the appeal. In October 2020, the FERC issued an order reaffirming its May
2020 order and denying the arguments raised in the rehearing requests filed by Ameren Missouri, Ameren Illinois, and ATXI. In November
2020, Ameren Missouri, Ameren Illinois, and ATXI filed an appeal of the October 2020 order to the United States Court of Appeals for the
District of Columbia Circuit. The court of appeals is under no deadline to address either appeal. Regardless of the outcome of the appeal, the
impacts of the May 2020 and October 2020 orders were immaterial to Ameren’s, Ameren Missouri’s, or Ameren Illinois’ results of operations,
financial position, or liquidity.
In March 2021, the FERC issued an order related to an intervenor challenge to Ameren Illinois’ 2020 transmission formula rate update.
As a result of this order, in March 2021, Ameren Illinois recorded a regulatory liability of $9 million, largely as a reduction of electric operating
revenues, to reflect expected refunds, including interest, primarily related to the historical rate recovery of materials and supplies inventories
included in rate base. In April 2021, Ameren Illinois filed a request for rehearing with the FERC regarding its March 2021 order. In May 2021,
the FERC denied the rehearing request without addressing the issues raised. In July 2021, Ameren Illinois filed an appeal of the March 2021
order and the May 2021 rehearing denial to the United States Court of Appeals for the District of Columbia Circuit. In August 2021, the United
States Court of Appeals for the District of Columbia Circuit granted a motion to consolidate the July 2021, July 2020, and November 2020
appeals. In November 2021, the FERC issued an order reaffirming its March 2021 order and denying the arguments raised in the rehearing
request filed by Ameren Illinois. In December 2021, Ameren Illinois filed an appeal of the November 2021 order to the United States Court of
Appeals for the District of Columbia Circuit. In December 2021, Ameren Illinois filed a motion to consolidate the December 2021 appeal with
the July 2020, November 2020, and July 2021 appeals. In January 2022, the United States Court of Appeals for the District of Columbia
issued an order granting the motion to consolidate the appeals. The court is under no deadline to address the appeal.
FERC Complaint Cases
In November 2013, a customer group filed a complaint case with the FERC seeking a reduction in the allowed base ROE for FERC-
regulated transmission rate base under the MISO tariff from 12.38% to 9.15%. In September 2016, the FERC issued an order in the
November 2013 complaint case, which lowered the allowed base ROE to 10.32%, or a 10.82% total allowed ROE with the inclusion of a
50 basis point incentive adder for participation in an RTO, that was effective from late September 2016 forward. The September 2016 order
also required refunds for the period November 2013 to February 2015, which were paid in 2017. In November 2019, the FERC issued an
order addressing the November 2013 complaint case, which set the allowed base ROE at 9.88%, superseding the 10.32% previously
ordered, and required refunds, with interest, for the periods November 2013 to February 2015 and from late September 2016 forward. In
December 2019, the MISO transmission owners, including Ameren Missouri, Ameren Illinois, and ATXI, filed requests for rehearing with the
FERC. In May 2020, the FERC issued an order addressing the requests for rehearing, which set the allowed base ROE at 10.02%,
superseding the 9.88% previously ordered, and required refunds, with interest, for the periods November 2013 to February 2015 and from
late September 2016 forward. In June 2020, various parties filed requests for rehearing with the FERC, challenging the new ROE
methodology established by the May 2020 order. In July 2020, the FERC denied the rehearing requests without addressing the issues raised,
and indicated it will address the requests for rehearing in a future order. Also, in July 2020, Ameren Missouri, Ameren Illinois, and ATXI filed
110
an appeal of the May 2020 order to the United States Court of Appeals for the District of Columbia Circuit challenging the refunds required for
the period from September 2016 to May 2020. The court is under no deadline to address the appeal.
As of December 31, 2021, Ameren and Ameren Illinois had substantially paid the refunds, including interest, associated with the allowed
base ROE set by the May 2020 order in the November 2013 complaint case. The increase in the FERC-allowed base ROE resulting from the
May 2020 order was not material to Ameren Missouri’s results of operations, financial position, or liquidity.
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Regulatory Assets and Liabilities
The following table presents our regulatory assets and regulatory liabilities at December 31, 2021 and 2020:
Ameren
Missouri
2021
Ameren
Illinois
Ameren
Ameren
Missouri
2020
Ameren
Illinois
Ameren
Regulatory assets:
$
Under-recovered FAC(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Under-recovered PGA(b)(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MTM derivative losses(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IEIMA revenue requirement reconciliation adjustment(e)(f) . . . . . . . . . . . . . . . . . . .
FERC revenue requirement reconciliation adjustment(g) . . . . . . . . . . . . . . . . . . . .
Under-recovered VBA(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bad debt rider(j) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Callaway refueling and maintenance outage costs(k) . . . . . . . . . . . . . . . . . . . . . . .
Unamortized loss on reacquired debt(l) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Environmental cost riders(m) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Storm costs(f)(n) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for funds used during construction for pollution control equipment(f)(o) . . .
Customer generation rebate program(f)(p) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PISA(f)(q) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FEJA energy-efficiency rider(f)(r) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47
49
77
—
—
—
115
—
14
50
—
—
13
—
244
—
41
$
—
$
114
125
42
18
17
69
8
—
13
70
17
—
47
—
350
42
$
47
163
202
42
43
17
185
8
14
63
70
17
13
47
244
350
83
48
—
21
—
—
—
117
—
39
52
—
—
15
—
78
—
37
$
—
$
2
200
—
28
11
65
11
—
22
93
7
—
17
—
283
40
48
2
221
—
50
11
183
11
39
74
93
7
15
17
78
283
77
Total regulatory assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
650
$
932
$
1,608
$
407
$
779
$
1,209
Less: current regulatory assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(127)
(180)
(319)
(60)
(37)
(109)
$
$
Noncurrent regulatory assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Regulatory liabilities:
Over-recovered FAC(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Over-recovered Illinois electric power costs(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Over-recovered PGA(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MTM derivative gains(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IEIMA revenue requirement reconciliation adjustment(e) . . . . . . . . . . . . . . . . . . . .
FERC revenue requirement reconciliation adjustment(g) . . . . . . . . . . . . . . . . . . . .
Income taxes(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of removal(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
AROs(t) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bad debt rider(j) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension and postretirement benefit costs(u) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension and postretirement benefit costs tracker(v) . . . . . . . . . . . . . . . . . . . . . . . .
Renewable energy credits and zero emission credits(w) . . . . . . . . . . . . . . . . . . . . .
RESRAM(x) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excess income taxes collected in 2018(y) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
523
$
752
$
1,289
$
347
$
742
$
1,100
$
19
—
—
50
—
—
1,208
1,028
603
—
399
28
—
19
25
32
$
—
13
1
41
—
2
770
929
—
19
392
—
246
—
—
15
19
13
1
91
—
4
2,066
1,988
603
19
791
28
246
19
25
48
$
$
10
—
7
11
—
—
1,317
1,027
436
—
198
55
—
2
45
28
$
—
15
15
10
22
21
790
873
—
5
177
—
200
—
—
23
10
15
22
21
22
21
2,192
1,923
436
5
375
55
200
2
45
59
Total regulatory liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
3,411
$
2,428
$
5,961
$
3,136
$
2,151
$
5,403
Less: current regulatory liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(57)
(54)
(113)
(26)
(88) $
(121)
Noncurrent regulatory liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
3,354
$
2,374
$
5,848
$
3,110
$
2,063
$
5,282
(a)
(b)
(c)
Under-recovered or over-recovered fuel costs to be recovered or refunded through the FAC. Specific accumulation periods aggregate the under-recovered or over-
recovered costs over four months, any related adjustments that occur over the following four months, and the recovery from, or refund to, customers that occurs over the
next eight months.
Under-recovered or over-recovered costs from utility customers. Amounts will be recovered from, or refunded to, customers within one year of the deferral.
As a result of the significant increase in customer demand and prices for natural gas and electricity experienced in mid-February 2021 due to extremely cold weather, for
the month of February 2021, Ameren Missouri and Ameren Illinois had under-recovered costs under their PGA clauses of $53 million and $221 million, respectively.
Pursuant to an October 2021 MoPSC order, the collection period for Ameren Missouri’s cumulative PGA under-recovery as of August 2021, which includes the
February 2021 under-recovery, was extended from 12 months to 36 months, beginning November 2021. Ameren Illinois is collecting its February 2021 PGA under-
recovery over 18 months beginning April 2021, but the collection of the remaining balance may be extended at Ameren Illinois’ election to lessen the impact on customer
rates.
112
(d)
(e)
(f)
(g)
(h)
(i)
(j)
Deferral of commodity-related derivative MTM losses or gains. See Note 7 – Derivative Financial Instruments for additional information.
The difference between Ameren Illinois’ electric distribution service annual revenue requirement calculated under the performance-based formula ratemaking framework
and the revenue requirement included in customer rates for that year. Any under-recovery or over-recovery will be recovered from, or refunded to, customers with interest
within two years.
These assets earn a return at the applicable WACC.
Ameren Illinois’ and ATXI’s annual revenue requirement reconciliation calculated pursuant to the FERC’s electric transmission formula ratemaking framework. Any under-
recovery or over-recovery will be recovered from, or refunded to, customers within two years.
Under-recovered natural gas revenue caused by sales volume deviations from weather normalized sales approved by the ICC in rate regulatory reviews. Each year’s
amount will be recovered from customers from April through December of the following year.
The regulatory assets represent amounts that will be recovered from customers for deferred income taxes related to the equity component of allowance for funds used
during construction and the effects of tax rate increases. The regulatory liabilities represent amounts that will be refunded to customers for deferred income taxes related to
depreciation differences, other tax liabilities, and the unamortized portion of investment tax credits recorded at rates in excess of current statutory rates. Amounts
associated with the equity component of allowance for funds used during construction and the unamortized portion of investment tax credits will be amortized over the
expected life of the related assets. For net regulatory liabilities related to deferred income taxes recorded at rates other than the current statutory rate, the weighted-
average remaining amortization periods at Ameren, Ameren Missouri, and Ameren Illinois are 35, 28, and 42 years.
A rider for the difference between the level of bad debt write-offs, net of any subsequent recoveries, incurred by Ameren Illinois and the level of such costs included in
electric distribution and natural gas delivery service rates. Pursuant to a June 2020 ICC order, Ameren Illinois’ electric distribution bad debt rider provided for the recovery
of bad debt expense in 2020. The under-recovery or over-recovery for each year is recovered from, or refunded to, customers over a twelve-month period beginning June
the following year.
(k) Maintenance expenses related to scheduled refueling and maintenance outages at Ameren Missouri’s Callaway Energy Center. Amounts are amortized over the period
(l)
(m)
(n)
(o)
(p)
(q)
(r)
(s)
(t)
between refueling and maintenance outages, which has historically been approximately 18 months.
Losses related to reacquired debt. These amounts are being amortized over the lives of the related new debt issuances or the original lives of the old debt issuances if no
new debt was issued.
The recoverable portion of accrued environmental site liabilities that will be collected from electric and natural gas customers through ICC-approved cost recovery riders.
The period of recovery will depend on the timing of remediation expenditures. See Note 14 – Commitments and Contingencies for additional information.
Storm costs from 2018, 2020, and 2021 deferred in accordance with the IEIMA. These costs are being amortized over five-year periods beginning in the year the storm
occurred.
The MoPSC’s May 2010 electric rate order allowed Ameren Missouri to record an allowance for funds used during construction for pollution control equipment at its Sioux
Energy Center until the cost of that equipment was included in customer rates beginning in 2011. These costs are being amortized over the expected life of the Sioux
Energy Center through 2028.
Costs associated with Ameren Illinois’ customer generation rebate program. Costs are amortized over a 15-year period, beginning in the year rebates are paid.
Under the PISA, Ameren Missouri is permitted to defer and recover 85% of the depreciation expense and earn a return at the applicable WACC on investments in certain
property, plant, and equipment placed in service and not included in base rates. Accumulated PISA deferrals are added to rate base prospectively and amortized over a
period of 20 years following a regulatory rate review.
The electric energy-efficiency investments are being amortized over their weighted-average useful lives beginning in the period in which they were made, with current
remaining amortization periods ranging from 5 to 13 years.
Estimated funds collected from customers to pay for the future removal cost of property, plant, and equipment retired from service, net of salvage.
The ARO regulatory liability includes the nuclear decommissioning trust fund balance ($1,159 million and $982 million at December 31, 2021 and 2020, respectively), net
of recoverable removal costs for AROs ($556 million and $546 million at December 31, 2021 and 2020, respectively). See Note 1 – Summary of Significant Accounting
Policies – Asset Retirement Obligations.
(u) Over-recovered costs are being amortized in proportion to the recognition of prior service costs (credits) and actuarial losses (gains) attributable to Ameren’s pension plan
(v)
(w)
(x)
(y)
and postretirement benefit plans. See Note 10 – Retirement Benefits for additional information.
A regulatory recovery mechanism for the difference between the level of pension and postretirement benefit costs incurred by Ameren Missouri and the level of such costs
included in customer rates. The period of refund varies based on MoPSC approval in a regulatory rate review. The weighted-average remaining amortization period is five
years.
Funds collected for the purchase of renewable energy credits and zero emission credits through IPA procurements. The balance will be amortized as the credits are
purchased.
Over-recovered costs associated with Ameren Missouri’s compliance with the state of Missouri’s renewable energy standard. Under-recovered or over-recovered costs are
aggregated over a twelve-month period beginning each August and are amortized over a twelve-month period beginning February the following year.
The excess amount collected in rates related to the TCJA from January 1, 2018, through July 31, 2018. The regulatory liability is being amortized over a three-year period,
which began in April 2020.
113
NOTE 3 – PROPERTY, PLANT, AND EQUIPMENT, NET
The following table presents components of “Property, plant, and equipment, net” at December 31, 2021 and 2020:
2021
Property, plant, and equipment at original cost:(a)
Electric generation:
Coal(b)(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nuclear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Renewable(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electric distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electric transmission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
Less: Accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction work in progress:
Nuclear fuel in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plant to be abandoned, net(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property, plant, and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2020
Property, plant, and equipment at original cost:(a)
Electric generation:
Coal(b)(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nuclear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Renewable(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electric distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electric transmission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction work in progress:
Nuclear fuel in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property, plant, and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
Ameren
Missouri
Ameren
Illinois
Other
Ameren
3,955
1,105
5,615
1,889
7,286
1,628
607
1,584
23,669
9,784
13,885
133
674
604
$
$
—
—
—
—
7,017
4,105
3,586
1,183
15,891
4,100
11,791
—
432
—
$
—
—
—
—
—
1,800
—
242
2,042
330
1,712
—
30
—
3,955
1,105
5,615
1,889
14,303
7,533
4,193
3,009
41,602
14,214
27,388
133
1,136
604
$
15,296
$
12,223
$
1,742
$
29,261
$
4,875
$
1,097
5,608
1,301
6,784
1,482
561
1,390
23,098
9,689
13,409
75
395
13,879
$
$
—
—
—
—
6,649
3,575
3,308
1,070
14,602
3,780
10,822
—
379
11,201
$
—
—
—
—
—
1,774
—
245
2,019
304
1,715
—
12
1,727
$
$
4,875
1,097
5,608
1,301
13,433
6,831
3,869
2,705
39,719
13,773
25,946
75
786
26,807
(a)
(b)
(c)
The estimated lives for each asset group are as follows: 5 to 72 years for electric generation, excluding Ameren Missouri’s hydroelectric generating assets, which have
useful lives of up to 150 years; 20 to 80 years for electric distribution; 50 to 75 years for electric transmission; 20 to 80 years for natural gas; and 2 to 55 years for other.
Includes $29 million and $36 million of oil-fired generation at December 31, 2021 and 2020, respectively.
Original cost amounts include two CTs that have related financing obligations. The gross cumulative asset value of those agreements was $243 million and $240 million at
December 31, 2021 and 2020, respectively. The total accumulated depreciation associated with the two CTs was $105 million and $99 million at December 31, 2021 and
2020, respectively. See Note 5 – Long-term Debt and Equity Financings for additional information on these agreements.
Renewable includes hydroelectric, wind, solar, and methane gas generation facilities.
(d)
(e) Other property, plant, and equipment includes assets used to support electric and natural gas services.
(f)
Represents the net book value of the Rush Island Energy Center and related construction work in progress as Ameren Missouri expects to retire the energy center
significantly in advance of its previously expected useful life and in the near term. See Plant to be Abandoned, Net under Note 1 – Summary of Significant Accounting
Policies and NSR and Clean Air Act Litigation under Note 14 – Commitments and Contingencies for additional information on the planned accelerated retirement of the
Rush Island Energy Center.
114
Capitalized software costs are classified within “Property, Plant, and Equipment, Net” on the balance sheet and are amortized on a
straight-line basis over the expected period of benefit, ranging from 2 to 15 years. The following table presents the amortization, gross
carrying value, and related accumulated amortization of capitalized software by year:
Ameren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
125 $
93 $
Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
66
53
44
45
78
30
45
$
1,199 $
1,021
$
(757) $
523
452
398
397
(255)
(291)
(640)
(189)
(238)
Amortization Expense
2020
2019
2021
Gross Carrying Value
2020
2021
Accumulated Amortization
2021
2020
Annual amortization expense for capitalized software placed in service as of December 31, 2021, is estimated to be as follows:
Ameren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
135
$
119
$
Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
75
56
69
47
$
87
54
31
$
47
31
14
21
14
6
2022
2023
2024
2025
2026
NOTE 4 – SHORT-TERM DEBT AND LIQUIDITY
The liquidity needs of the Ameren Companies are typically supported through the use of available cash, drawings under committed
credit agreements, commercial paper issuances, and/or, in the case of Ameren Missouri and Ameren Illinois, short-term affiliate borrowings.
Short-Term Borrowings
In December 2021, the Credit Agreements, which were scheduled to mature in December 2024, were extended and now mature in
December 2025. The Credit Agreements provide $2.3 billion of credit cumulatively through maturity. The total facility size of the Missouri
Credit Agreement and Illinois Credit Agreement is $1.2 billion and $1.1 billion, respectively. The maturity date may be extended by an
additional one-year period upon the mutual consent of the borrowers and the lenders. Credit available under the agreements is provided by
22 international, national, and regional lenders, with no single lender providing more than $130 million of credit in aggregate.
The obligations of each borrower under the respective Credit Agreements to which it is a party are several and not joint. Except under
limited circumstances relating to expenses and indemnities, the obligations of Ameren Missouri and Ameren Illinois under the respective
Credit Agreements are not guaranteed by Ameren (parent) or any other subsidiary of Ameren. The following table presents the maximum
aggregate amount available to each borrower under each facility:
Ameren (parent) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
900 $
850
(a)
500
(a)
800
Missouri
Credit Agreement
Illinois
Credit Agreement
(a)
Not applicable.
The borrowers have the option to seek additional commitments from existing or new lenders to increase the total facility size of the
Credit Agreements to a maximum of $1.4 billion for the Missouri Credit Agreement and $1.3 billion for the Illinois Credit Agreement. Ameren
(parent) borrowings are due and payable no later than the maturity date of the Credit Agreements. Ameren Missouri and Ameren Illinois
borrowings under the applicable Credit Agreement are due and payable no later than the earlier of the maturity date or 364 days after the
date of the borrowing.
The obligations of the borrowers under the Credit Agreements are unsecured. Loans are available on a revolving basis under each of
the Credit Agreements. Funds borrowed may be repaid and, subject to satisfaction of the conditions to borrowing, reborrowed from time to
time. At the election of each borrower, the interest rates on such loans will be the alternate base rate plus the margin applicable to the
particular borrower and/or the eurodollar rate plus the margin applicable to the particular borrower. The applicable margins will be determined
by the borrower’s long-term unsecured credit ratings or, if no such ratings are in effect, the borrower’s corporate/issuer ratings then in effect.
The borrowers have received commitments from the lenders to issue letters of credit up to $100 million under each of the Credit Agreements.
In addition, the issuance of letters of credit is subject to the $2.3 billion overall combined facility borrowing limitations of the Credit
Agreements.
The borrowers will use the proceeds from any borrowings under the Credit Agreements for general corporate purposes, including
working capital, commercial paper liquidity support, loan funding under the Ameren money pool arrangements, and other short-term affiliate
115
loan arrangements. The Missouri Credit Agreement and the Illinois Credit Agreement are available to support issuances under Ameren
(parent)’s, Ameren Missouri’s and Ameren Illinois’ commercial paper programs, respectively, subject to borrowing sublimits, as well as to
support issuance of letters of credit for the borrowers. As of December 31, 2021, based on commercial paper outstanding and letters of credit
issued under the Credit Agreements, along with cash and cash equivalents, the net liquidity available to Ameren (parent), Ameren Missouri,
and Ameren Illinois, collectively, was $1.8 billion.
The following table summarizes the activity and relevant interest rates for Ameren (parent)’s, Ameren Missouri’s, and Ameren Illinois’
commercial paper issuances and borrowings under the Credit Agreements in the aggregate for the years ended December 31, 2021 and
2020:
Ameren
(parent)
Ameren
Missouri
Ameren Illinois
Ameren
Consolidated
2021
Average daily amount outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial paper issuances outstanding at period-end . . . . . . . . . . . . . . . .
Weighted-average interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Peak amount outstanding during period(a) . . . . . . . . . . . . . . . . . . . . . . . . . .
Peak interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2020
Average daily amount outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial paper issuances outstanding at period-end . . . . . . . . . . . . . . . .
Weighted-average interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Peak amount outstanding during period(a) . . . . . . . . . . . . . . . . . . . . . . . . . .
Peak interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
$
$
$
387
277
0.22 %
650
0.38 %
108
490
1.04 %
490
3.30 %
$
$
$
$
99
165
0.22 %
546
0.35 %
109
—
1.73 %
573
5.05 % (b)
$
$
$
$
118
103
0.21 %
485
0.35 %
46
—
0.97 %
250
3.40 %
$
$
$
$
604
545
0.22 %
1,134
0.38 %
263
490
1.31 %
908
5.05 % (b)
(a)
The timing of peak outstanding commercial paper issuances and borrowings under the Credit Agreements varies by company. Therefore, the sum of individual company
peak amounts may not equal the Ameren consolidated peak amount for the period.
(b) Ameren’s and Ameren Missouri’s peak interest rates were affected by temporary disruptions in the commercial paper market in the first quarter of 2020.
Indebtedness Provisions and Other Covenants
The information below is a summary of the Ameren Companies’ compliance with indebtedness provisions and other covenants.
The Credit Agreements contain conditions for borrowings and issuances of letters of credit. These conditions include the absence of
default or unmatured default, material accuracy of representations and warranties (excluding any representation after the closing date as to
the absence of material adverse change and material litigation, and the absence of any notice of violation, liability, or requirement under any
environmental laws that could have a material adverse effect), and obtaining required regulatory authorizations. In addition, it is a condition
for any Ameren Illinois borrowing that, at the time of and after giving effect to such borrowing, Ameren Illinois not be in violation of any
limitation on its ability to incur unsecured indebtedness contained in its articles of incorporation.
The Credit Agreements also contain nonfinancial covenants, including restrictions on the ability to incur certain liens, to transact with
affiliates, to dispose of assets, to make investments in or transfer assets to its affiliates, and to merge with other entities. The Credit
Agreements require each of Ameren, Ameren Missouri, and Ameren Illinois to maintain consolidated indebtedness of not more than 65% of
its consolidated total capitalization pursuant to a defined calculation set forth in the agreements. As of December 31, 2021, the ratios of
consolidated indebtedness to total consolidated capitalization, calculated in accordance with the provisions of the Credit Agreements, were
58%, 49%, and 45%, for Ameren, Ameren Missouri, and Ameren Illinois, respectively.
The Credit Agreements contain default provisions that apply separately to each borrower. However, a default of Ameren Missouri or
Ameren Illinois under the applicable credit agreement is also deemed to constitute a default of Ameren (parent) under such agreement.
Defaults include a cross-default resulting from a default of such borrower under any other agreement covering outstanding indebtedness of
such borrower and certain subsidiaries (other than project finance subsidiaries and nonmaterial subsidiaries) in excess of $100 million in the
aggregate (including under the other credit agreement). However, under the default provisions of the Credit Agreements, any default of
Ameren (parent) under either credit agreement that results solely from a default of Ameren Missouri or Ameren Illinois does not result in a
cross-default of Ameren (parent) under the other credit agreement. Further, the Credit Agreements default provisions provide that an Ameren
(parent) default under either of the Credit Agreements does not constitute a default by Ameren Missouri or Ameren Illinois.
None of the Credit Agreements or financing agreements contain credit rating triggers that would cause a default or acceleration of
repayment of outstanding balances. The Ameren Companies were in compliance with the provisions and covenants of the Credit Agreements
at December 31, 2021.
116
Money Pools
Ameren has money pool agreements with and among its subsidiaries to coordinate and provide for certain short-term cash and working
capital requirements.
Ameren Missouri, Ameren Illinois, and ATXI may participate in the utility money pool as both lenders and borrowers. Ameren (parent)
and Ameren Services may participate in the utility money pool only as lenders. Surplus internal funds are contributed to the money pool from
participants. The primary sources of external funds for the utility money pool are the Credit Agreements and the commercial paper programs.
The total amount available to the pool participants from the utility money pool at any given time is reduced by the amount of borrowings made
by participants, but it is increased to the extent that the pool participants advance surplus funds to the utility money pool or remit funds from
other external sources. The availability of funds is also determined by funding requirement limits established by regulatory authorizations.
Participants receiving a loan under the utility money pool agreement must repay the principal amount of such loan, together with accrued
interest. The rate of interest depends on the composition of internal and external funds in the utility money pool. The average interest rate for
borrowing under the utility money pool for the year ended December 31, 2021, was 0.17% (2020 – 0.64%).
See Note 13 – Related-party Transactions for the amount of interest income and expense from the utility money pool agreement
recorded by Ameren Missouri and Ameren Illinois for the years ended December 31, 2021, 2020, and 2019.
117
NOTE 5 – LONG-TERM DEBT AND EQUITY FINANCINGS
The following table presents long-term debt outstanding, including maturities due within one year, as of December 31, 2021 and 2020:
2021
2020
Ameren (Parent):
2.50% Senior unsecured notes due 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
3.65% Senior unsecured notes due 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.95% Senior unsecured notes due 2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.75% Senior unsecured notes due 2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.50% Senior unsecured notes due 2031 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total long-term debt, gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Unamortized discount and premium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Unamortized debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
450
350
500
450
800
2,550
(2)
(15)
Long-term debt, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2,533
$
Ameren Missouri:
Bonds and notes:
1.60% 1992 Series bonds due 2022(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
3.50% Senior secured notes due 2024(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.95% Senior secured notes due 2027(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.50% First mortgage bonds due 2029(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.95% First mortgage bonds due 2030(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.15% First mortgage bonds due 2032(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.90% 1998 Series A bonds due 2033(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.90% 1998 Series B bonds due 2033(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.75% 1998 Series C bonds due 2033(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.50% Senior secured notes due 2034(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.30% Senior secured notes due 2037(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.45% Senior secured notes due 2039(b)(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.90% Senior secured notes due 2042(b)(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.65% Senior secured notes due 2045(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.00% First mortgage bonds due 2048(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.25% First mortgage bonds due 2049(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.625% First mortgage bonds due 2051(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance obligations:
City of Bowling Green agreement (Peno Creek CT) due 2022(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Audrain County agreement (Audrain County CT) due 2023(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total long-term debt, gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Unamortized discount and premium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Unamortized debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Maturities due within one year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47
$
350
400
450
465
525
60
50
50
184
300
350
485
400
425
330
550
8
240
5,669
(12)
(38)
(55)
450
350
—
—
800
1,600
(2)
(10)
1,588
47
350
400
450
465
—
60
50
50
184
300
350
485
400
425
330
550
16
240
5,152
(12)
(36)
(8)
Long-term debt, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
5,564
$
5,096
118
Ameren Illinois:
Bonds and notes:
2.70% Senior secured notes due 2022(f)(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
0.375% First mortgage bonds due 2023(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.25% Senior secured notes due 2025(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.125% Senior secured notes due 2028(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.80% First mortgage bonds due 2028(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.55% First mortgage bonds due 2030(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.70% Senior secured notes due 2036(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.70% Senior secured notes due 2036(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.80% Senior secured notes due 2043(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.30% Senior secured notes due 2044(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.15% Senior secured notes due 2046(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.70% First mortgage bonds due 2047(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.50% First mortgage bonds due 2049(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.25% First mortgage bonds due 2050(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.90% First mortgage bonds due 2051(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total long-term debt, gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Unamortized discount and premium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Unamortized debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Maturities due within one year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
ATXI:
2.45% Senior unsecured notes due 2036(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
3.43% Senior unsecured notes due 2050(j) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total long-term debt, gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Unamortized debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Maturities due within one year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Ameren consolidated long-term debt, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2021
2020
$
400
100
300
60
430
375
61
42
280
250
490
500
500
300
350
4,438
(7)
(39)
(400)
400
—
300
60
430
375
61
42
280
250
490
500
500
300
—
3,988
(6)
(36)
—
3,992
$
3,946
75
450
525
(2)
(50)
473
12,562
$
—
450
450
(2)
—
$
$
448
11,078
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
These bonds are collaterally secured by first mortgage bonds issued by Ameren Missouri under the Ameren Missouri mortgage indenture and have a fall-away lien
provision similar to that of Ameren Missouri’s senior secured notes.
These notes are collaterally secured by first mortgage bonds issued by Ameren Missouri under the Ameren Missouri mortgage indenture. The notes have a fall-away lien
provision and will remain secured only as long as any first mortgage bonds issued under the Ameren Missouri mortgage indenture remain outstanding. Redemption,
purchase, or maturity of all first mortgage bonds, including first mortgage bonds currently outstanding and any that may be issued in the future, would result in a release of
the first mortgage bonds currently securing these notes, at which time these notes would become unsecured obligations. Considering the 2051 maturity of the 2.625% first
mortgage bonds and the restrictions preventing a release date to occur that are attached to certain senior secured notes described in footnote (c) below, Ameren Missouri
does not expect the first mortgage lien protection associated with these notes to fall away.
Ameren Missouri has agreed that so long as any of the 3.90% senior secured notes due 2042 are outstanding, Ameren Missouri will not permit a release date to occur,
and so long as any of the 8.45% senior secured notes due 2039 are outstanding, Ameren Missouri will not optionally redeem, purchase, or otherwise retire in full the
outstanding first mortgage bonds not subject to release provisions.
These bonds are first mortgage bonds issued by Ameren Missouri under the Ameren Missouri bond indenture. They are secured by substantially all Ameren Missouri
property and franchises.
Payments due related to these financing obligations are paid to a trustee, which is authorized to utilize the cash only to pay equal amounts due to Ameren Missouri under
related bonds issued by the city/county and held by Ameren Missouri. The timing and amounts of payments due from Ameren Missouri under the agreements are equal to
the timing and amount of bond service payments due to Ameren Missouri, resulting in no net cash flow. The balance of both the financing obligations and the related
investments in debt securities, recorded in “Other Assets,” was $248 million and $256 million, respectively, as of December 31, 2021 and 2020.
These notes are collaterally secured by first mortgage bonds issued by Ameren Illinois under the Ameren Illinois mortgage indenture. The notes have a fall-away lien
provision and will remain secured only as long as any first mortgage bonds issued under its mortgage indenture remain outstanding. Redemption, purchase, or maturity of
all first mortgage bonds, including first mortgage bonds currently outstanding and any that may be issued in the future, would result in a release of the first mortgage bonds
currently securing these notes, at which time these notes would become unsecured obligations. Considering the 2051 maturity date of the 2.90% first mortgage bonds,
Ameren Illinois does not expect the first mortgage lien protection associated with these notes to fall away.
Ameren Illinois has agreed that so long as any of the 2.70% senior secured notes due 2022 are outstanding, Ameren Illinois will not permit a release date to occur.
These bonds are first mortgage bonds issued by Ameren Illinois under the Ameren Illinois mortgage indenture. They are secured by substantially all Ameren Illinois
property and franchises.
119
(i)
The following table presents the principal maturities schedule for the 2.45% senior unsecured notes due 2036:
November 2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
November 2036 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
30
45
75
Payment Date
Principal Payment
(j)
The following table presents the principal maturities schedule for the 3.43% senior unsecured notes due 2050:
Payment Date
Principal Payment
August 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
August 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
August 2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
August 2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
August 2032 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
August 2038 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
August 2043 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
August 2050 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
49.5
49.5
49.5
49.5
49.5
49.5
76.5
76.5
450.0
The following table presents the aggregate maturities of long-term debt, including current maturities, at December 31, 2021:
2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Ameren
(parent)(a)
Ameren
Missouri(a)
Ameren
Illinois(a)
—
—
450
—
350
1,750
$
55
$
240
350
—
—
5,024
400
100
—
300
—
3,638
ATXI(a)
$
2,550
$
5,669
$
4,438
$
Ameren
Consolidated(a)
505
$
340
850
300
350
50
—
50
—
—
425
525
$
10,837
13,182
(a)
Excludes unamortized discount, premium, and debt issuance costs of $17 million, $50 million, $46 million, and $2 million at Ameren (parent), Ameren Missouri, Ameren
Illinois, and ATXI, respectively.
120
All classes of Ameren Missouri’s and Ameren Illinois’ preferred stock are entitled to cumulative dividends, have voting rights, and are not
subject to mandatory redemption. The preferred stock of Ameren’s subsidiaries is included in “Noncontrolling Interests” on Ameren’s
consolidated balance sheet. The following table presents the outstanding preferred stock of Ameren Missouri and Ameren Illinois, which is
redeemable at the option of the issuer, at the prices shown below as of December 31, 2021 and 2020:
Ameren Missouri:
Without par value and stated value of $100 per share, 25 million shares authorized
Shares Outstanding
Redemption Price
(per share)
2021
2020
$
13
$
$3.50 Series
$3.70 Series
$4.00 Series
$4.30 Series
$4.50 Series
$4.56 Series
$4.75 Series
$5.50 Series A
Total
130,000 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40,000 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
150,000 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40,000 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
213,595 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
200,000 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20,000 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14,000 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
110.00
104.75
105.625
105.00
110.00
102.47
102.176
110.00
(a)
Ameren Illinois:
With par value of $100 per share, 2 million shares authorized
4.00% Series
4.08% Series
4.20% Series
4.25% Series
4.26% Series
4.42% Series
4.70% Series
4.90% Series
4.92% Series
5.16% Series
6.625% Series
7.75% Series
Total
Total Ameren
144,275 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45,224 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
23,655 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
50,000 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16,621 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16,190 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18,429 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
73,825 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49,289 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
50,000 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
101.00
103.00
104.00
102.00
103.00
103.00
104.30
102.00
103.50
102.00
100.00
100.00
$
$
$
$
4
15
4
21
20
2
1
80
$
13
4
15
4
21
20
2
1
80
14
$
14
5
2
5
2
2
2
7
5
5
5
2
5
2
2
2
7
5
5
—
—
49
129
$
$
12
1
62
142
(a)
(b)
In the event of voluntary liquidation, $105.50.
In March 2021, Ameren Illinois redeemed its 6.625% and 7.75% series preferred stock at par.
Ameren has 100 million shares of $0.01 par value preferred stock authorized, with no such shares outstanding. Ameren Missouri has
7.5 million shares of $1 par value preference stock authorized, with no such shares outstanding. Ameren Illinois has 2.6 million shares of no
par value preferred stock authorized, with no such shares outstanding.
Ameren
Under the DRPlus and its 401(k) plan, Ameren issued 0.5 million, 0.7 million, and 0.9 million shares of common stock in 2021, 2020, and
2019, respectively, and received proceeds of $47 million, $51 million, and $68 million for the respective years. In addition, Ameren issued
0.5 million, 0.5 million, and 0.8 million shares of common stock valued at $33 million, $38 million, and $54 million in 2021, 2020, 2019,
respectively, for no cash consideration in connection with stock-based compensation.
In May 2020, Ameren filed a Form S-3 registration statement with the SEC, authorizing the offering of 4 million additional shares of its
common stock under the DRPlus, which expires in May 2023. Shares of common stock sold under the DRPlus are, at Ameren’s option, newly
issued shares, treasury shares, or shares purchased in the open market or in privately negotiated transactions.
In October 2020, Ameren, Ameren Missouri, and Ameren Illinois filed a Form S-3 shelf registration statement with the SEC, registering
the issuance of an unspecified amount of certain types of securities. This registration statement expires in October 2023.
In October 2018, Ameren filed a Form S-8 registration statement with the SEC, authorizing the offering of 4 million additional shares of
its common stock under its 401(k) plan. Shares of common stock issuable under the 401(k) plan are, at Ameren’s option, newly issued
shares, treasury shares, or shares purchased in the open market or in privately negotiated transactions.
In May 2021, Ameren entered into an equity distribution sales agreement pursuant to which Ameren may offer and sell from time to time
121
up to $750 million of its common stock through an ATM program, which includes the ability to enter into forward sales agreements. During
2021, Ameren issued 1.8 million shares of common stock and received proceeds of $148 million. These proceeds were net of less than
$2 million in compensation paid to selling agents. There were no shares issued through the ATM program for the three months ended
December 31, 2021.
In September 2021, December 2021, and January 2022, Ameren entered into forward sale agreements under the ATM program with
counterparties relating to 0.4 million, 0.5 million, and 0.2 million shares of common stock, respectively. The September 2021, December
2021, and January 2022 forward sale agreements can be settled at Ameren’s discretion on or prior to May 3, 2023, June 30, 2023, and
June 30, 2023, respectively. On a settlement date or dates, if Ameren elects to physically settle the forward sale agreement, Ameren will
issue shares of common stock to the counterparties at the then-applicable forward sale price. The forward sale price was initially $87.87,
$87.03, and $88.10 per share, for the September 2021, December 2021, and January 2022 forward sale agreements, respectively. Each
initial forward sale price is subject to adjustment based on a floating interest rate factor equal to the overnight bank funding rate less a spread
of 75 basis points, and will be subject to decrease on certain dates specified in the forward sale agreements by specified amounts related to
expected dividends on shares of the common stock during the term of the forward sale agreements. If the overnight bank funding rate is less
than the spread on any day, the interest rate factor will result in a reduction of the forward sale price. The forward sale agreements will be
physically settled unless Ameren elects to settle in cash or to net share settle. At December 31, 2021, Ameren could have settled the
September 2021 and December 2021 forward sale agreements with physical delivery of 0.4 million and 0.5 million shares of common stock,
respectively, to the counterparty in exchange for cash of $30 million and $41 million, respectively. The forward sale agreements have been
classified as equity transactions.
In August 2019, Ameren entered into a forward sale agreement with a counterparty relating to 7.5 million shares of common stock. In
December 2020, pursuant to the agreement terms, Ameren partially settled the forward sale agreement by physically delivering 5.9 million
shares of common stock for cash proceeds of $425 million. In February 2021, Ameren settled the remainder of the forward sale agreement
by physically delivering 1.6 million shares of common stock for cash proceeds of $113 million. The proceeds were used to fund a portion of
Ameren Missouri’s wind generation investments. See Note 15 – Supplemental Information for additional information about the wind
generation facilities.
In March 2021, Ameren (parent) issued $450 million of 1.75% senior unsecured notes due March 2028, with interest payable
semiannually on March 15 and September 15 of each year, beginning September 15, 2021. Ameren received net proceeds of $447 million
which were used for general corporate purposes, including the repayment of short-term debt.
In November 2021, Ameren (parent) issued $500 million of 1.95% senior unsecured notes due March 2027, with interest payable
semiannually on March 15 and September 15 of each year, beginning March 15, 2022. Ameren received net proceeds of $497 million which
were used to repay short-term debt.
In April 2020, Ameren (parent) issued $800 million of 3.50% senior unsecured notes due January 2031, with interest payable
semiannually on January 15 and July 15 of each year, beginning July 15, 2020. Ameren received net proceeds of $793 million, which were
used for general corporate purposes, including to repay outstanding short-term debt, and were used to fund the repayment of Ameren’s
$350 million of 2.70% senior unsecured notes, which were redeemed at par plus accrued interest in October 2020.
Ameren Missouri
In June 2021, Ameren Missouri issued $525 million of 2.15% first mortgage bonds due March 2032, with interest payable semiannually
on March 15 and September 15 of each year, beginning March 15, 2022. Ameren Missouri received net proceeds of $521 million, which were
used to repay short-term debt and for near-term capital expenditures. Ameren Missouri intends to allocate an amount equal to the net
proceeds to sustainability projects meeting certain eligibility criteria.
In March 2020, Ameren Missouri issued $465 million of 2.95% first mortgage bonds due March 2030, with interest payable semiannually
on March 15 and September 15 of each year, beginning September 15, 2020. Ameren Missouri received net proceeds of $462 million, which
were used to repay outstanding short-term debt, including short-term debt that Ameren Missouri incurred in connection with the repayment of
$85 million of its 5.00% senior secured notes that matured in February 2020.
In October 2020, Ameren Missouri issued $550 million of 2.625% first mortgage bonds due March 2051, with interest payable
semiannually on March 15 and September 15 of each year, beginning March 15, 2021. Ameren Missouri received net proceeds of
$543 million, which were allocated and used to partially finance the acquisition of two wind generation energy centers. See Note 15 –
Supplemental Information for information about the wind generation energy centers.
For information on Ameren Missouri’s capital contributions, refer to Capital Contributions in Note 13 – Related-party Transactions.
122
Ameren Illinois
In March 2021, Ameren Illinois redeemed its 6.625% and 7.75% series preferred stock at par for $12 million and $1 million, respectively.
The preferred stock of Ameren Illinois is reflected in “Noncontrolling Interests” on Ameren’s consolidated balance sheet.
In June 2021, Ameren Illinois issued $350 million of 2.90% first mortgage bonds due June 2051, with interest payable semiannually on
June 15 and December 15 of each year, beginning December 15, 2021. Ameren Illinois received net proceeds of $345 million, which were
used to repay short-term debt. Ameren Illinois intends to allocate an amount equal to the net proceeds to sustainability projects meeting
certain eligibility criteria.
In June 2021, Ameren Illinois issued $100 million of 0.375% first mortgage bonds due June 2023, with interest payable semiannually on
June 15 and December 15 of each year, beginning December 15, 2021. Ameren Illinois received net proceeds of $100 million, which were
used to repay short-term debt.
In November 2020, Ameren Illinois issued $375 million of 1.55% first mortgage bonds due November 2030, with interest payable
semiannually on May 15 and November 15 of each year, beginning May 15, 2021. Ameren Illinois received net proceeds of $371 million,
which were used to repay short-term debt.
For information on Ameren Illinois’ capital contributions, refer to Capital Contributions in Note 13 – Related-party Transactions.
ATXI
In November 2021, pursuant to a note purchase agreement, ATXI issued $75 million of its 2.45% senior unsecured notes due 2036, with
interest payable semiannually on May 16 and November 16 of each year, beginning May 16, 2022, through a private placement offering
exempt from registration under the Securities Act of 1933, as amended. ATXI received net proceeds of $75 million, which were used to
refinance a portion of an intercompany long-term note with Ameren (parent) and to repay short-term debt.
In November 2021, pursuant to a note purchase agreement, ATXI agreed to issue $95 million of its 2.96% senior unsecured notes due
2052, with interest payable semiannually on February 25 and August 25 of each year, beginning February 25, 2023, through a private
placement offering exempt from registration under the Securities Act of 1933, as amended. ATXI expects to issue the notes and receive net
proceeds of $95 million in August 2022, which will be used to refinance the remaining portion of an intercompany long-term note with Ameren
(parent), repay a $50 million principal payment of its 3.43% senior unsecured notes, and to repay short-term debt.
Indenture Provisions and Other Covenants
Ameren Missouri’s and Ameren Illinois’ indentures and articles of incorporation include covenants and provisions related to issuances of
first mortgage bonds and preferred stock. Ameren Missouri and Ameren Illinois are required to meet certain ratios to issue additional first
mortgage bonds and preferred stock. A failure to achieve these ratios would not result in a default under these covenants and provisions but
would restrict the companies’ ability to issue bonds or preferred stock. The following table summarizes the required and actual interest
coverage ratios for interest charges, dividend coverage ratios, and bonds and preferred stock issuable as of December 31, 2021, at an
assumed interest rate of 5% and dividend rate of 6%.
Ameren Missouri . . .
Required Interest
Coverage Ratio(a)
>2.0
Ameren Illinois . . . . .
>2.0
Actual Interest
Coverage Ratio
3.2
7.3
Bonds Issuable(b)
$4,834
Required Dividend
Coverage Ratio(c)
>2.5
7,697
>1.5
Actual Dividend
Coverage Ratio
Preferred Stock
Issuable
152.4
3.5
$3,418
203
(d)
(a)
(b)
(c)
(d)
Coverage required on the annual interest charges on first mortgage bonds outstanding and to be issued. Coverage is not required in certain cases when additional first
mortgage bonds are issued on the basis of retired bonds.
Amount of bonds issuable based either on required coverage ratios or unfunded property additions, whichever is more restrictive. The amounts shown also include bonds
issuable based on retired bond capacity of $2,437 million and $643 million at Ameren Missouri and Ameren Illinois, respectively.
Coverage required on the annual dividend on preferred stock outstanding and to be issued, as required in the respective company’s articles of incorporation.
Preferred stock issuable is restricted by the amount of preferred stock that is currently authorized by Ameren Illinois’ articles of incorporation.
Ameren’s indenture does not require Ameren to comply with any quantitative financial covenants. The indenture does, however, include
certain cross-default provisions. Specifically, either (1) the failure by Ameren to pay when due and upon expiration of any applicable grace
period any portion of any Ameren indebtedness in excess of $25 million, or (2) the acceleration upon default of the maturity of any Ameren
indebtedness in excess of $25 million under any indebtedness agreement, including borrowings under the Credit Agreements or the Ameren
commercial paper program, constitutes a default under the indenture, unless such past due or accelerated debt is discharged or the
acceleration is rescinded or annulled within a specified period.
Ameren Missouri and Ameren Illinois and certain other nonregistrant Ameren subsidiaries are subject to Section 305(a) of the Federal
123
Power Act, which makes it unlawful for any officer or director of a public utility, as defined in the Federal Power Act, to participate in the
making or paying of any dividend from any funds “properly included in capital account.” The FERC has consistently interpreted the provision
to allow dividends to be paid as long as (1) the source of the dividends is clearly disclosed, (2) the dividends are not excessive, and (3) there
is no self-dealing on the part of corporate officials. At a minimum, Ameren believes that dividends can be paid by its subsidiaries that are
public utilities from net income and retained earnings. In addition, under Illinois law, Ameren Illinois and ATXI may not pay any dividend on
their respective stock unless, among other things, their respective earnings and earned surplus are sufficient to declare and pay a dividend
after provisions are made for reasonable and proper reserves, or unless Ameren Illinois or ATXI has specific authorization from the ICC.
Ameren Illinois’ articles of incorporation require dividend payments on its common stock to be based on ratios of common stock to total
capitalization and other provisions related to certain operating expenses and accumulations of earned surplus. Ameren Illinois has made a
commitment to the FERC to maintain a minimum 30% ratio of common stock equity to total capitalization. As of December 31, 2021, using
the FERC-agreed upon calculation method, Ameren Illinois’ ratio of common stock equity to total capitalization was 54%.
ATXI’s note purchase agreements includes financial covenants that require ATXI not to permit at any time (1) debt to exceed 70% of
total capitalization or (2) secured debt to exceed 10% of total assets.
At December 31, 2021, the Ameren Companies were in compliance with the provisions and covenants contained in their indentures and
articles of incorporation, as applicable, and ATXI was in compliance with the provisions and covenants contained in its note purchase
agreements. In order for the Ameren Companies to issue securities in the future, they will have to comply with all applicable requirements in
effect at the time of any such issuances.
Off-Balance-Sheet Arrangements
At December 31, 2021, none of the Ameren Companies had any significant off-balance-sheet financing arrangements, other than
variable interest entities and the September and December 2021 forward sale agreements relating to common stock. See Note 1 – Summary
of Significant Accounting Policies for further detail concerning variable interest entities.
NOTE 6 – OTHER INCOME, NET
The following table presents the components of “Other Income, Net” in the Ameren Companies’ statements of income for the years
ended December 31, 2021, 2020, and 2019:
2021
2020
2019
Ameren:
Other Income, Net
Allowance for equity funds used during construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Interest income on industrial development revenue bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-service cost components of net periodic benefit income (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Donations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Other Income, Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Ameren Missouri:
Other Income, Net
Allowance for equity funds used during construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Interest income on industrial development revenue bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-service cost components of net periodic benefit income (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Donations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Other Income, Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
43
25
2
136
22
(9)
(17)
202
26
25
1
55
3
(4)
(7)
99
$
$
$
$
32
25
4
116
13
(25) (b)
(14)
151
$
$
19
25
1
46
4
(12) (b)
(7)
$
76
$
28
25
8
90
6
(12)
(15)
130
19
25
1
18
5
(3)
(7)
58
124
2021
2020
2019
Ameren Illinois:
Other Income, Net
Allowance for equity funds used during construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-service cost components of net periodic benefit income (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Donations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Other Income, Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
17
1
55
6
(5)
(8)
66
$
$
13
3
48
6
(5)
(6)
59
$
$
9
6
47
3
(5)
(7)
53
(a)
(b)
For the years ended December 31, 2021, 2020, and 2019, the non-service cost components of net periodic benefit income were adjusted by amounts deferred of
$(7) million, $(4) million, and $29 million, respectively, due to a tracker for the difference between the level of such costs incurred by Ameren Missouri under GAAP and the
level of such costs included in rates.
Includes $8 million pursuant to Ameren Missouri’s March 2020 electric rate order.
NOTE 7 – DERIVATIVE FINANCIAL INSTRUMENTS
We use derivatives to manage the risk of changes in market prices for natural gas, power, and uranium, as well as the risk of changes in
rail transportation surcharges through fuel oil hedges. Such price fluctuations may cause the following:
•
•
•
•
an unrealized appreciation or depreciation of our contracted commitments to purchase or sell when purchase or sale prices under the
commitments are compared with current commodity prices;
market values of natural gas and uranium inventories that differ from the cost of those commodities in inventory;
actual cash outlays for the purchase of these commodities that differ from anticipated cash outlays; and
actual off-system sales revenues that differ from anticipated revenues.
The derivatives that we use to hedge these risks are governed by our risk management policies for forward contracts, futures, options,
and swaps. Our net positions are continually assessed within our structured hedging programs to determine whether new or offsetting
transactions are required. The goal of the hedging program is generally to mitigate financial risks while ensuring that sufficient volumes are
available to meet our requirements. Contracts we enter into as part of our risk management program may be settled financially, settled by
physical delivery, or net settled with the counterparty.
All contracts considered to be derivative instruments are required to be recorded on the balance sheet at their fair values, unless the
NPNS exception applies. See Note 8 – Fair Value Measurements for discussion of our methods of assessing the fair value of derivative
instruments. Many of our physical contracts, such as our purchased power contracts, qualify for the NPNS exception to derivative accounting
rules. The revenue or expense on NPNS contracts is recognized at the contract price upon physical delivery. The following disclosures
exclude NPNS contracts and other nonderivative commodity contracts that are accounted for under the accrual method of accounting.
If we determine that a contract meets the definition of a derivative and is not eligible for the NPNS exception, we review the contract to
determine whether the resulting gains or losses qualify for regulatory deferral. Derivative contracts that qualify for regulatory deferral are
recorded at fair value, with changes in fair value recorded as regulatory assets or liabilities in the period in which the change occurs. We
believe derivative losses and gains deferred as regulatory assets and liabilities are probable of recovery, or refund, through future rates
charged to customers. Regulatory assets and liabilities are amortized to operating income as related losses and gains are reflected in rates
charged to customers. Therefore, gains and losses on these derivatives have no effect on operating income. As of December 31, 2021 and
2020, all contracts that met the definition of a derivative and were not eligible for the NPNS exception received regulatory deferral. Cash flows
for all derivative financial instruments are classified in cash flows from operating activities.
125
The following table presents open gross commodity contract volumes by commodity type for derivative assets and liabilities as of
December 31, 2021 and 2020. As of December 31, 2021, these contracts extended through October 2024, October 2026, May 2032, and
March 2024 for fuel oils, natural gas, power, and uranium, respectively.
Commodity
Fuel oils (in gallons) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural gas (in mmbtu) . . . . . . . . . . . . . . . . . . . . . . . . . .
Power (in MWhs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Uranium (pounds in thousands) . . . . . . . . . . . . . . . . . . . .
Quantity (in millions, except as indicated)
Ameren
Missouri
2021
Ameren
Illinois
30
35
6
586
—
144
6
—
Ameren
Ameren
Missouri
30
179
12
586
43
33
6
365
2020
Ameren
Illinois
Ameren
—
114
7
—
43
147
13
365
The following table presents the carrying value and balance sheet location of all derivative commodity contracts, none of which were
designated as hedging instruments, as of December 31, 2021 and 2020:
Commodity
Fuel oils
Natural gas
Power
Uranium
Balance Sheet Location
Other current assets . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . .
Other current assets . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . .
Other current assets . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . .
Fuel oils
Other current liabilities . . . . . . . . . . . . .
Natural gas
Power
Uranium
Other deferred credits and liabilities . . . .
Other current liabilities . . . . . . . . . . . . .
Other deferred credits and liabilities . . . .
Other current liabilities . . . . . . . . . . . . .
Other deferred credits and liabilities . . . .
Other current liabilities . . . . . . . . . . . . .
$
$
$
Total liabilities . . . . . . . . . . . . . . . . . .
$
Ameren
Missouri
2021
Ameren
Illinois
Ameren
Ameren
Missouri
2020
Ameren
Illinois
Ameren
8
5
7
5
23
1
49
—
—
2
1
50
23
1
77
$
$
$
$
—
—
28
13
—
—
41
—
—
6
2
9
108
—
125
$
$
$
$
8
5
35
18
23
1
90
—
—
8
3
59
131
1
202
$
$
$
$
2
—
1
2
7
—
12
7
2
1
—
3
8
—
21
$
$
$
$
—
—
8
2
—
—
10
—
—
1
1
17
181
—
200
$
$
$
$
2
—
9
4
7
—
22
7
2
2
1
20
189
—
221
We believe that entering into master netting arrangements or similar agreements mitigates the level of financial loss that could result
from default by allowing net settlement of derivative assets and liabilities. These master netting arrangements allow the counterparties to net
settle sale and purchase transactions. Further, collateral requirements are calculated at the master netting arrangement or similar agreement
level by counterparty.
126
The following table provides the recognized gross derivative balances and the net amounts of those derivatives subject to an
enforceable master netting arrangement or similar agreement as of December 31, 2021. If the gross amounts recognized on the balance
sheet were netted with derivative instruments and cash collateral received or posted at December 31, 2020, the net amounts would not be
materially different from the gross amounts.
Commodity Contracts Eligible to be Offset
2021
Assets:
Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Liabilities:
Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Gross Amounts Not Offset in the Balance Sheet
Gross Amounts
Recognized in the
Balance Sheet
Derivative
Instruments
Cash Collateral
Received/Posted(a)
Net
Amount
49
41
90
77
125
202
$
$
$
$
15
4
19
15
4
19
$
$
$
$
—
—
—
47
—
47
$
$
$
$
34
37
71
15
121
136
(a)
Cash collateral received reduces gross asset balances and is included in “Other current liabilities” and “Other deferred credits and liabilities” on the balance sheet. Cash
collateral posted reduces gross liability balances and is included in “Other current assets” on Ameren’s balance sheet and in “Current collateral assets” on Ameren
Missouri’s balance sheet.
Credit Risk
In determining our concentrations of credit risk related to derivative instruments, we review our individual counterparties and categorize
each counterparty into groupings according to the primary business in which each engages. As of December 31, 2021, if counterparty groups
were to fail completely to perform on contracts, Ameren’s, Ameren Missouri’s, and Ameren Illinois’ maximum exposure related to derivative
assets, predominantly from financial institutions, was $77 million, $36 million, and $41 million, respectively. The potential loss on counterparty
exposures may be reduced or eliminated by the application of master netting arrangements or similar agreements and collateral held. As of
December 31, 2021, the potential loss after consideration of the application of master netting arrangements or similar agreements and
collateral held for Ameren, Ameren Missouri, and Ameren Illinois was $61 million, $23 million, and $38 million, respectively.
Certain of our derivative instruments contain collateral provisions tied to the Ameren Companies’ credit ratings. If our credit ratings were
downgraded below investment grade, or if a counterparty with reasonable grounds for uncertainty regarding our ability to satisfy an obligation
requested adequate assurance of performance, additional collateral postings might be required. The additional collateral required is the net
liability position allowed under the master netting arrangements or similar agreements, assuming (1) the credit risk-related contingent
features underlying these arrangements were triggered and (2) those counterparties with rights to do so requested collateral. As of
December 31, 2021, the aggregate fair value of derivative instruments with credit risk-related contingent features in a gross liability position,
the cash collateral posted, and the aggregate amount of additional collateral that counterparties could require were each immaterial to
Ameren, Ameren Missouri, and Ameren Illinois.
NOTE 8 – FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most
advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We use
various methods to determine fair value, including market, income, and cost approaches. With these approaches, we adopt certain
assumptions that market participants would use in pricing the asset or liability, including assumptions about market risk or the risks inherent
in the inputs to the valuation. Inputs to valuation can be readily observable, market-corroborated, or unobservable. We use valuation
techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Authoritative accounting guidance
established a fair value hierarchy that prioritizes the inputs used to measure fair value. All financial assets and liabilities carried at fair value
are classified and disclosed in one of the following three hierarchy levels:
Level 1 (quoted prices in active markets for identical assets or liabilities): Inputs based on quoted prices in active markets for identical
assets or liabilities. Level 1 assets and liabilities are primarily exchange-traded derivatives, cash and cash equivalents, and listed equity
securities.
The market approach is used to measure the fair value of equity securities held in Ameren Missouri’s nuclear decommissioning trust
fund. Equity securities in this fund are representative of the S&P 500 index, excluding securities of Ameren Corporation, owners and/or
operators of nuclear power plants, and the trustee and investment managers. The S&P 500 index comprises stocks of large-capitalization
companies.
127
Level 2 (significant other observable inputs): Market-based inputs corroborated by third-party brokers or exchanges based on transacted
market data. Level 2 assets and liabilities include certain assets held in Ameren Missouri’s nuclear decommissioning trust fund, including
United States Treasury and agency securities, corporate bonds and other fixed-income securities, and certain over-the-counter derivative
instruments, including natural gas and financial power transactions.
Fixed income securities are valued by using prices from independent industry-recognized data vendors who provide values that are
either exchange-based or matrix-based. The fair value measurements of fixed-income securities classified as Level 2 are based on inputs
other than quoted prices that are observable for the asset or liability. Examples are matrix pricing, market corroborated pricing, and inputs
such as yield curves and indices.
Derivative instruments classified as Level 2 are valued by corroborated observable inputs, such as pricing services or prices from similar
instruments that trade in liquid markets. Our development and corroboration process entails obtaining multiple quotes or prices from outside
sources. To derive our forward view to price our derivative instruments at fair value, we average the bid/ask spreads to the midpoints.
Additionally, a review of all sources is performed to identify any anomalies or potential errors. Further, we consider the volume of transactions
on certain trading platforms in our reasonableness assessment of the averaged midpoints. The value of natural gas derivative contracts is
based upon exchange closing prices without significant unobservable adjustments. The value of power derivative contracts is based upon
exchange closing prices or the use of multiple forward prices provided by third parties.
Level 3 (significant other unobservable inputs): Unobservable inputs that are not corroborated by market data. Level 3 assets and
liabilities are valued by internally developed models and assumptions or methodologies that use significant unobservable inputs. Level 3
assets and liabilities include derivative instruments that trade in less liquid markets, where pricing is largely unobservable. We value Level 3
instruments by using pricing models with inputs that are often unobservable in the market, such as certain internal assumptions, quotes or
prices from outside sources not supported by a liquid market, or trend rates.
We perform an analysis each quarter to determine the appropriate hierarchy level of the assets and liabilities subject to fair value
measurements. Financial assets and liabilities are classified in their entirety according to the lowest level of input that is significant to the fair
value measurement. All assets and liabilities whose fair value measurement is based on significant unobservable inputs are classified as
Level 3.
We consider nonperformance risk in our valuation of derivative instruments by analyzing our own credit standing and the credit standing
of our counterparties, and by considering any credit enhancements (e.g., collateral). Included in our valuation, and based on current market
conditions, is a valuation adjustment for counterparty default derived from market data such as the price of credit default swaps, bond yields,
and credit ratings. No material gains or losses related to valuation adjustments for counterparty default risk were recorded at Ameren,
Ameren Missouri, or Ameren Illinois in 2021, 2020, or 2019. At December 31, 2021 and 2020, the counterparty default risk valuation
adjustment related to derivative contracts was immaterial for Ameren, Ameren Missouri, and Ameren Illinois.
128
The following table sets forth, by level within the fair value hierarchy, our assets and liabilities measured at fair value on a recurring basis
as of December 31, 2021 and 2020:
Level 1
December 31, 2021
Level 3
Level 2
Total
Level 1
December 31, 2020
Level 3
Level 2
Total
Assets:
Ameren Missouri
Derivative assets – commodity contracts:
Fuel oils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Natural gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Uranium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total derivative assets – commodity contracts . . . . . . . . . . . . $
Nuclear decommissioning trust fund:
Equity securities:
13 $
— $
— $
—
10
—
12
—
—
—
13
1
23 $
12 $
14 $
13
12
23
1
49
$
— $
— $
2 $
—
2
—
3
—
—
—
5
—
$
2 $
3 $
7 $
2
3
7
—
12
U.S. large capitalization . . . . . . . . . . . . . . . . . . . . . $
824 $
— $
— $
824
$
680 $
— $
— $
680
Debt securities:
U.S. Treasury and agency securities . . . . . . . . . . . .
Corporate bonds . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
141
131
56
Total nuclear decommissioning trust fund . . . . . . . . . . . . . . . $
Total Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
824 $
847 $
328 $
340 $
—
—
—
141
131
56
— $
1,152
(a)
14 $
1,201
Ameren Illinois
Derivative assets – commodity contracts:
Natural gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
1 $
33 $
7 $
41
Ameren
Derivative assets – commodity contracts(b) . . . . . . . . . . . . . . $
Nuclear decommissioning trust fund(c) . . . . . . . . . . . . . . . . .
Total Ameren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
24 $
824
848 $
45 $
328
373 $
21 $
—
90
1,152
(a)
21 $
1,242
—
—
—
680 $
682 $
115
115
67
297 $
300 $
—
—
—
— $
7 $
115
115
67
977
989
(a)
— $
6 $
4 $
10
2 $
9 $
680
297
682 $
306 $
11 $
—
11 $
(a)
22
977
999
$
$
$
$
$
Liabilities:
Ameren Missouri
Derivative liabilities – commodity contracts:
Fuel oils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Natural gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Uranium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
— $
— $
— $
—
45
—
2
—
—
1
28
1
45 $
2 $
30 $
Ameren Illinois
Derivative liabilities – commodity contracts:
Natural gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
— $
—
5 $
3 $
—
117
Total Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
— $
5 $
120 $
—
3
73
1
77
8
117
125
Ameren
Derivative liabilities – commodity contracts(b) . . . . . . . . . . . . . $
45 $
7 $
150 $
202
$
6 $
— $
3 $
—
8
—
1
—
—
—
3
—
$
14 $
1 $
6 $
9
1
11
—
21
$
$
$
— $
—
— $
1 $
1 $
—
198
1 $
199 $
2
198
200
14 $
2 $
205 $
221
(a)
(b)
(c)
Balance excludes $7 million and $5 million of cash and cash equivalents, receivables, payables, and accrued income, net for December 31, 2021 and 2020, respectively.
See the Ameren Missouri and Ameren Illinois sections of the table for a breakout of the fair value of Ameren’s derivative assets and liabilities by type of commodity.
See the Ameren Missouri section of the table for a breakout of Ameren’s nuclear decommissioning trust fund by investment type.
See Note 10 – Retirement Benefits for tables that set forth, by level within the fair value hierarchy, Ameren’s pension and postretirement
plan assets as of December 31, 2021 and 2020.
129
Level 3 fuel oils, natural gas and uranium derivative contract assets and liabilities measured at fair value on a recurring basis were
immaterial for all periods presented. The following table presents the fair value reconciliation of Level 3 power derivative contract assets and
liabilities measured at fair value on a recurring basis for the years ended December 31, 2021 and 2020:
2021
2020
Ameren
Missouri
Ameren
Illinois
Ameren
Ameren
Missouri
Ameren
Illinois
Ameren
Beginning balance at January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2 $
(198) $
(196)
$
13 $
(224) $
(211)
Realized and unrealized gains (losses) included in regulatory assets/liabilities . . . . . . .
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ending balance at December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Change in unrealized gains (losses) related to assets/liabilities held at December 31 . . . . $
(1)
(16)
(15) $
(14) $
70
11
69
(5)
(117) $
(132)
65 $
51
$
$
15
(26)
2 $
1 $
8
18
23
(8)
(198) $
(196)
9 $
10
All gains or losses related to our Level 3 derivative commodity contracts are expected to be recovered or returned through customer
rates; therefore, there is no impact to either net income or other comprehensive income resulting from changes in the fair value of these
instruments.
The following table describes the valuation techniques and significant unobservable inputs utilized for the fair value of our Level 3 power
derivative contract assets and liabilities as of December 31, 2021 and 2020:
Fair Value
Commodity Assets
Power(c)
$
13 $
2021
Liabilities
Valuation Technique(s)
Unobservable Input(a)
(145) Discounted cash flow
Average forward peak and off-peak pricing – forwards/
swaps ($/MWh)
Nodal basis ($/MWh)
Trend rate (%)
2020
Power(c)
$
5 $
(201) Discounted cash flow
Average forward peak and off-peak pricing – forwards/
swaps ($/MWh)
Nodal basis ($/MWh)
Trend rate (%)
Range
32 – 55
(14) – 0
0 – 0
23 – 37
(6) – 0
2 – 6
Weighted
Average(b)
40
(2)
0
29
(2)
3
(a) Generally, significant increases (decreases) in these inputs in isolation would result in a significantly higher (lower) fair value measurement.
(b)
(c)
Unobservable inputs were weighted by relative fair value.
Valuations through 2029 use visible forward prices adjusted for nodal-to-hub basis differentials. Valuations beyond 2029 use a trend rate factor and are similarly adjusted
for nodal-to-hub basis differentials.
130
The following table sets forth, by level within the fair value hierarchy, the carrying amount and fair value of financial assets and liabilities
disclosed, but not carried, at fair value as of December 31, 2021 and 2020:
Carrying
Amount
Level 1
Fair Value
Level 2
December 31, 2021
Level 3
Total
155
$
155
$
$
—
248
545
13,930
—
—
—
(c)
591
Ameren:
Cash, cash equivalents, and restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Investments in industrial development revenue bonds(a) . . . . . . . . . . . . . . . . . .
Short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt (including current portion)(a) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Missouri:
Cash, cash equivalents, and restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Investments in industrial development revenue bonds(a) . . . . . . . . . . . . . . . . . .
Short-term debt
Long-term debt (including current portion)(a) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois:
Cash, cash equivalents, and restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt (including current portion) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren:
Cash, cash equivalents, and restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Investments in industrial development revenue bonds(a) . . . . . . . . . . . . . . . . . .
Short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt (including current portion)(a) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Missouri:
Cash, cash equivalents, and restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Advances to money pool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in industrial development revenue bonds(a) . . . . . . . . . . . . . . . . . .
Long-term debt (including current portion)(a) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois:
Cash, cash equivalents, and restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Borrowings from money pool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt (including current portion) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
248
545
13,067
(b)
8
$
$
$
248
165
5,619
133
103
4,392
(b)
(b)
301
256
490
11,086
(b)
145
139
256
5,104
(b)
147
19
3,946
(b)
—
—
—
8
—
—
—
133
—
—
301
—
—
—
$
—
$
248
165
6,321
—
103
4,971
$
December 31, 2020
$
$
$
$
$
—
256
490
12,778
—
139
256
6,160
—
19
4,822
$
145
$
—
—
—
$
147
$
—
—
$
$
$
$
$
$
155
248
545
14,521
8
248
165
6,321
133
103
4,971
301
256
490
13,315
145
139
256
6,160
147
19
4,822
—
—
—
—
—
—
—
—
—
—
(c)
537
—
—
—
—
—
—
—
(a)
(b)
(c)
Ameren and Ameren Missouri have investments in industrial development revenue bonds, classified as held-to-maturity and recorded in “Other Assets,” that are equal to
the finance obligations for the Peno Creek and Audrain CT energy centers. As of December 31, 2021 and 2020, the carrying amount of both the investments in industrial
development revenue bonds and the finance obligations approximated fair value.
Included unamortized debt issuance costs, which were excluded from the fair value measurement, of $94 million, $38 million, and $39 million for Ameren, Ameren
Missouri, and Ameren Illinois, respectively, as of December 31, 2021. Included unamortized debt issuance costs, which were excluded from the fair value measurement, of
$84 million, $36 million, and $36 million for Ameren, Ameren Missouri, and Ameren Illinois, respectively, as of December 31, 2020.
The Level 3 fair value amount consists of ATXI’s senior unsecured notes.
NOTE 9 – CALLAWAY ENERGY CENTER
Maintenance Outage
During its return to full power after the completion of the last refueling and maintenance outage in late December 2020, the Callaway
Energy Center experienced a non-nuclear operating issue related to its generator. After replacement of certain key components of the
generator, the energy center returned to service in early August 2021. The cost of generator repairs was approximately $60 million, which
was largely capital expenditures. In April 2021, Ameren Missouri’s insurance claims were accepted by NEIL, which covered a significant
portion of the capital expenditures and covered lost sales of up to $4.5 million weekly after March 17, 2021. Insurance recoveries related to
lost sales were reflected in electric operating revenues and included in net energy costs under the FAC. Expected insurance recoveries
related to the capital expenditures were reflected as a reduction to property, plant, and equipment. As of December 31, 2021, a $33 million
insurance receivable was included in “Miscellaneous accounts receivable” on Ameren’s and Ameren Missouri’s balance sheets related to the
capital expenditures and lost sales insurance claims. In January 2022, Ameren Missouri received $17 million in payments from NEIL and
EMANI related to the capital expenditures insurance claims.
131
Spent Nuclear Fuel
Under the Nuclear Waste Policy Act of 1982, as amended, the DOE is responsible for disposing of spent nuclear fuel from the Callaway
Energy Center and other commercial nuclear energy centers. As required by the act, Ameren Missouri and other utilities have entered into
standard contracts with the DOE, which stated that the DOE would begin to dispose of spent nuclear fuel by 1998. However, the DOE failed
to fulfill its disposal obligations, and Ameren Missouri and other nuclear energy center owners sued the DOE to recover costs incurred for
ongoing storage of their spent fuel. Ameren Missouri’s lawsuit against the DOE resulted in a settlement agreement that provides for annual
reimbursement of additional spent fuel storage and related costs. Ameren Missouri received immaterial reimbursements from the DOE in the
years ended December 31, 2021, 2020, and 2019. Ameren Missouri will continue to apply for reimbursement from the DOE for allowable
costs associated with the ongoing storage of spent fuel. The DOE’s delay in carrying out its obligation to dispose of spent nuclear fuel from
the Callaway Energy Center is not expected to adversely affect the continued operations of the energy center.
Decommissioning
Electric rates charged to customers provide for the recovery of the Callaway Energy Center’s decommissioning costs, which include
decontamination, dismantling, and site restoration costs, over the expected life of the nuclear energy center. Amounts collected from
customers are deposited into the external nuclear decommissioning trust fund to provide for the Callaway Energy Center’s decommissioning.
It is assumed that the Callaway Energy Center site will be decommissioned after its retirement through the immediate dismantlement method
and removed from service. The Callaway Energy Center’s operating license expires in 2044. Ameren and Ameren Missouri have recorded an
ARO for the Callaway Energy Center decommissioning costs at fair value. Annual decommissioning costs of $7 million are included in the
costs used to establish electric rates for Ameren Missouri’s customers. Every three years, the MoPSC requires Ameren Missouri to file an
updated cost study and funding analysis for decommissioning its Callaway Energy Center. An updated cost study and funding analysis was
filed with the MoPSC in November 2020 and reflected within the ARO. In February 2021, the MoPSC approved no change in electric rates for
decommissioning costs consistent with Ameren Missouri’s updated cost study and funding analysis.
Ameren and Ameren Missouri have classified the investments in debt and equity securities that are held in the nuclear decommissioning
trust fund as available for sale, and have recorded all such investments at their fair market value at December 31, 2021 and 2020.
Investments in the nuclear decommissioning trust fund have a target allocation of 60% to 70% in equity securities, with the balance invested
in debt securities.
The fair value of the trust fund for Ameren Missouri’s Callaway Energy Center is reported as “Nuclear decommissioning trust fund” in
Ameren’s and Ameren Missouri’s balance sheets. This amount is legally restricted and may be used only to fund the costs of nuclear
decommissioning. Changes in the fair value of the trust fund are recorded as an increase or decrease to the nuclear decommissioning trust
fund, with an offsetting adjustment to the regulatory liability related to AROs. This reporting is consistent with the method used to account for
the decommissioning costs recovered in rates. See Note 2 – Rate and Regulatory Matters for the regulatory liability recorded at
December 31, 2021. If the assumed return on trust assets is not earned, Ameren Missouri believes that it is probable that any additional
funding requirements resulting from such earnings deficiency will be recovered in customer rates.
The following table presents proceeds from the sale and maturities of investments in Ameren Missouri’s nuclear decommissioning trust
fund and the gross realized gains and losses resulting from those sales for the years ended December 31, 2021, 2020, and 2019:
Proceeds from sales and maturities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Gross realized gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross realized losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2021
2020
2019
439
$
183
$
32
6
10
3
260
10
2
132
The following table presents the cost and fair value of investments in debt and equity securities in Ameren’s and Ameren Missouri’s
nuclear decommissioning trust fund at December 31, 2021 and December 31, 2020:
Security Type
Cost
Gross Unrealized Gain
Gross Unrealized Loss
Fair Value
2021
Debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2020
Debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
320
188
4
3
515
272
198
4
1
475
$
$
$
$
10
640
—
—
650
25
491
—
—
516
$
$
$
$
2
4
—
—
6
—
9
—
—
9
$
$
$
$
328
824
4
3
1,159
297
680
4
1
982
(a)
Represents net receivables and payables relating to pending securities sales, interest, and securities purchases.
The following table presents the costs and fair values of investments in debt securities in Ameren’s and Ameren Missouri’s nuclear
decommissioning trust fund according to their contractual maturities at December 31, 2021:
Less than 5 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
5 years to 10 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due after 10 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Cost
Fair Value
155
$
71
94
320
$
156
72
100
328
Insurance
The following table presents insurance coverage at Ameren Missouri’s Callaway Energy Center at January 1, 2022:
Type and Source of Coverage
Public liability and nuclear worker liability:
Most Recent
Renewal Date
Maximum Coverages
Maximum Assessments
for Single Incidents
American Nuclear Insurers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
January 1, 2022
Pool participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a)
Property damage:
NEIL and EMANI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
April 1, 2021
Accidental outage:
NEIL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
April 1, 2021
$
$
$
$
450
13,073
13,523
(a)
(c)
3,200
(d)
(f)
490
$
$
$
$
(b)
—
138
138
(e)
25
(e)
7
(a)
(b)
(c)
(d)
(e)
(f)
Provided through mandatory participation in an industrywide retrospective premium assessment program. The maximum coverage available is dependent on the number
of United States commercial reactors participating in the program.
Retrospective premium under the Price-Anderson Act. This is subject to retrospective assessment with respect to a covered loss in excess of $450 million in the event of
an incident at any licensed United States commercial reactor, payable at $21 million per year.
Limit of liability for each incident under the Price-Anderson liability provisions of the Atomic Energy Act of 1954, as amended. This limit is subject to change to account for
the effects of inflation and changes in the number of licensed power reactors.
NEIL provides $2.7 billion in property damage, stabilization, decontamination, and premature decommissioning insurance for radiation events and $2.3 billion in property
damage insurance for nonradiation events. EMANI provides $490 million in property damage insurance for both radiation and nonradiation events.
All NEIL-insured plants could be subject to assessments should losses exceed the accumulated funds from NEIL.
Accidental outage insurance provides for lost sales in the event of a prolonged accidental outage. Weekly indemnity up to $4.5 million for 52 weeks, which commences
after the first 12 weeks of an outage, plus up to $3.6 million per week for a minimum of 71 weeks thereafter for a total not exceeding the policy limit of $490 million.
Nonradiation events are limited to $328 million.
The Price-Anderson Act is a federal law that limits the liability for claims from an incident involving any licensed United States
commercial nuclear energy center. The limit is based on the number of licensed reactors. The limit of liability and the maximum potential
annual payments are adjusted at least every five years for inflation to reflect changes in the Consumer Price Index. The most recent five-year
inflationary adjustment became effective in November 2018. Owners of a nuclear reactor cover this exposure through a combination of
private insurance and mandatory participation in a financial protection pool, as established by the Price-Anderson Act.
133
Losses resulting from terrorist attacks on nuclear facilities insured by NEIL are subject to industrywide aggregates, such that terrorist
acts against one or more commercial nuclear power plants within a stated time period would be treated as a single event, and the owners of
the nuclear power plants would share the limit of liability. NEIL policies have an aggregate limit of $3.2 billion within a 12-month period for
radiation events, or $1.8 billion for events not involving radiation contamination, resulting from terrorist attacks. The EMANI policies are not
subject to industrywide aggregates in the event of terrorist attacks on nuclear facilities.
If losses from a nuclear incident at the Callaway Energy Center exceed the limits of, or are not covered by insurance, or if coverage is
unavailable, Ameren Missouri is at risk for any uninsured losses. If a serious nuclear incident were to occur, it could have a material adverse
effect on Ameren’s and Ameren Missouri’s results of operations, financial position, or liquidity.
NOTE 10 – RETIREMENT BENEFITS
The primary objective of the Ameren pension and postretirement benefit plans is to provide eligible employees with pension and
postretirement health care and life insurance benefits. Ameren has defined benefit pension plans covering substantially all of its employees
and has a postretirement benefit plan covering non-union employees hired before October 2015 and union employees hired before January
2020. Ameren Missouri and Ameren Illinois each participate in Ameren’s single-employer pension and other postretirement plans. All non-
union employees participate in a cash balance pension plan. Ameren Missouri union employees hired after June 2013, and Ameren Illinois
union employees hired after mid-October 2012, participate in a cash balance pension plan. Ameren uses a measurement date of
December 31 for its pension and postretirement benefit plans. Ameren’s qualified pension plan is the Ameren Retirement Plan. Ameren’s
other postretirement plan is the Ameren Retiree Welfare Benefit Plan. Ameren also has an unfunded nonqualified pension plan, the Ameren
Supplemental Retirement Plan, which is available to provide certain management employees and retirees with a supplemental benefit when
their qualified pension plan benefits are capped in compliance with Internal Revenue Code limitations. Only Ameren subsidiaries participate
in the plans listed above.
Ameren’s pension and other postretirement benefit plans were overfunded by $717 million and $249 million in the aggregate as of
December 31, 2021 and 2020, respectively. These net assets are recorded in “Pension and other postretirement benefits,” “Other current
liabilities,” and “Other deferred credits and liabilities” on Ameren’s consolidated balance sheet. The increase in the overfunded pension and
postretirement benefit plans during 2021 was primarily the result of an increase in the return on plan assets of the pension and postretirement
trusts and a 25 basis point increase in the pension and other postretirement benefit plan discount rates used to determine the present value
of the obligation. The overfunded pension and other postretirement benefit plans also resulted in regulatory liabilities on Ameren’s, Ameren
Missouri’s, and Ameren Illinois’ balance sheets.
The following table presents the net benefit liability/(asset) recorded on the balance sheets as of December 31, 2021 and 2020:
Ameren(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Ameren Missouri(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(717) $
(189)
(416)
(249)
(25)
(210)
2021
2020
(a)
Liabilities associated with pension and other postretirement benefits are recorded in “Other current liabilities” and “Other deferred credits and liabilities” on Ameren’s,
Ameren Missouri’s, and Ameren Illinois’ balance sheets.
134
Ameren recognizes the overfunded and underfunded status of its pension and postretirement plans as an asset or a liability on its
consolidated balance sheet, with offsetting entries to accumulated OCI and regulatory assets or liabilities. The following table presents the
funded status of Ameren’s pension and postretirement benefit plans as of December 31, 2021 and December 31, 2020. It also provides the
amounts included in regulatory assets or liabilities and accumulated OCI at December 31, 2021 and December 31, 2020, that have not been
recognized in net periodic benefit costs.
2021
2020
Pension
Benefits
Postretirement
Benefits
Pension
Benefits
Postretirement
Benefits
Accumulated benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
5,174 $
(a)
Change in benefit obligation:
Net benefit obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
5,510 $
1,204
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Participant contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial (gain) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in plan assets:
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Participant contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Funded status – surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
134
152
—
(82)
(257)
5,457
5,510
432
60
—
(257)
5,745
(288)
Accrued benefit asset at December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
(288) $
Amounts recognized in the balance sheet consist of:
Noncurrent asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Current liability(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncurrent liability(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
(327) $
2
37
(288) $
Amounts recognized in regulatory assets or liabilities consist of:
Net actuarial gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
(415) $
Prior service credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amounts recognized in accumulated OCI (pretax) consist of:
Net actuarial (gain) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
(8)
23
33
9
(80)
(60)
1,129
1,453
154
2
9
(60)
1,558
(429)
(429)
(429)
—
—
(429)
(343)
(33)
1
$
$
$
$
$
$
5,213 $
(a)
4,967 $
1,110
110
174
—
508
(249)
5,510
4,564
1,143
52
—
(249)
5,510
—
— $
(39) $
2
37
— $
(138) $
—
5
19
39
8
91
(63)
1,204
1,297
209
2
8
(63)
1,453
(249)
(249)
(249)
—
—
(249)
(200)
(37)
6
(231)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
(423) $
(375)
$
(133) $
(a)
(b)
(c)
Not applicable.
Included in “Other current liabilities” on Ameren’s consolidated balance sheet.
Included in “Other deferred credits and liabilities” on Ameren’s consolidated balance sheet.
The following table presents the assumptions used to determine our benefit obligations at December 31, 2021 and 2020:
Discount rate at measurement date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase in future compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash balance pension plan interest crediting rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Medical cost trend rate (initial)(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Medical cost trend rate (ultimate)(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension Benefits
Postretirement Benefits
2021
2020
2021
2020
3.00 %
2.75 %
3.00 %
2.75 %
3.50
5.00
(a)
(a)
3.50
5.00
(a)
(a)
3.50
(a)
5.00
5.00
3.50
(a)
5.00
5.00
(a)
(b)
Not applicable.
Initial and ultimate medical cost trend rate for certain Medicare-eligible participants was 2.50% and 3.00% at December 31, 2021 and 2020, respectively.
Ameren determines discount rate assumptions by identifying a theoretical settlement portfolio of high-quality corporate bonds sufficient
to provide for a plan’s projected benefit payments. The settlement portfolio of bonds is selected from a pool of approximately 820 high-quality
corporate bonds. A single discount rate is then determined; that rate results in a discounted value of the plan’s benefit payments that equates
135
to the market value of the selected bonds. During 2021, Ameren elected to continue to use the Society of Actuaries mortality table and the
Society of Actuaries 2020 Mortality Improvement Scale.
Funding
Pension benefits are based on the employees’ years of service, age, and compensation. Ameren’s pension plans are funded in
compliance with income tax regulations, federal funding requirements, and other regulatory requirements. As a result, Ameren expects to
fund its pension plans at a level equal to the greater of the pension cost or the legally required minimum contribution. Based on its
assumptions at December 31, 2021, its investment performance in 2021, and its pension funding policy, Ameren, Ameren Missouri, and
Ameren Illinois do not expect to make material contributions in the aggregate over the next five years. These estimated contributions may
change based on actual investment performance, changes in interest rates, changes in our assumptions, changes in government regulations,
and any voluntary contributions. Our funding policy for postretirement benefits is primarily to fund the Voluntary Employee Beneficiary
Association (VEBA) trusts to match the annual postretirement expense.
The following table presents the cash contributions made to our defined benefit retirement plans and to our postretirement plan during
2021, 2020, and 2019:
Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
22
28
10
60
$
$
17
27
8
$
3
$
19
1
52
$
23
$
1
1
—
2
$
$
1
1
—
2
$
$
1
1
1
3
Pension Benefits
Postretirement Benefits
2021
2020
2019
2021
2020
2019
Investment Strategy and Policies
Ameren manages plan assets in accordance with the “prudent investor” guidelines contained in ERISA. The investment committee,
which includes members of senior management, approves and implements investment strategy and asset allocation guidelines for the plan
assets. The investment committee’s goals are twofold: first, to ensure that sufficient funds are available to provide the benefits at the time
they are payable; and second, to maximize total return on plan assets and to minimize expense volatility consistent with its tolerance for risk.
Ameren delegates the task of investment management to specialists in each asset class. As appropriate, Ameren provides each investment
manager with guidelines that specify allowable and prohibited investment types. The investment committee regularly monitors manager
performance and compliance with investment guidelines.
The expected return on plan assets assumption is based on historical and projected rates of return for current and planned asset
classes in the investment portfolio. Projected rates of return for each asset class were estimated after an analysis of historical experience,
future expectations, and the volatility of the various asset classes. After considering the target asset allocation for each asset class, we
reviewed the overall expected rate of return for the portfolio for historical and expected experience of active portfolio management results
compared with benchmark returns and for the effect of expenses paid from plan assets. Ameren will use an expected return on plan assets
for its pension and postretirement plan assets of 6.50% in 2022.
Ameren’s investment committee strives to assemble a portfolio of diversified assets that does not create a significant concentration of
risks. The investment committee develops asset allocation guidelines between asset classes, and it creates diversification through
investments in assets that differ by type (equity, debt, real estate), duration, market capitalization, country, style (growth or value), and
industry, among other factors. The diversification of assets is displayed in the target allocation table below. The investment committee also
routinely rebalances the plan assets to adhere to the diversification goals. The investment committee’s strategy reduces the concentration of
investment risk; however, Ameren is still subject to overall market risk.
Effective January 2020, Ameren’s investment committee developed and implemented a liability hedging investment strategy for its
qualified pension plans designed to reduce interest rate risk as part of an objective for its long-term investment strategy. The plan invests in
derivative instruments mainly consisting of interest rate futures intended to extend the duration of the pension plan assets so that the assets
are more closely aligned with the duration of the liabilities. In addition, part of Ameren’s investment strategy includes participation in a
securities lending program, which allows it to lend eligible securities to third party borrowers. All loans are collateralized by at least 102% of
the loaned asset’s market value and the collateral is invested in the form of cash, government obligations, and U.S. agency obligations.
Ameren’s fair value of securities loaned was $374 million and $365 million as of December 31, 2021 and 2020, respectively. Cash and
securities obtained as collateral exceeded the fair value of the securities loaned as of December 31, 2021 and 2020.
136
The following table presents our target allocations and our pension and postretirement plans’ asset categories as of December 31, 2021
and 2020:
Pension Plan:
Asset
Category
Target Allocation
2021(a)
Percentage of Plan Assets at December 31,
2021
2020
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity securities:
U.S. large-capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
U.S. small- and mid-capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Private equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diversified credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Postretirement Plans:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity securities:
U.S. large-capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
U.S. small- and mid-capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0% – 5%
11% – 21%
3% – 13%
9% – 19%
7% – 17%
45% – 55%
35% – 45%
0% – 10%
0% – 5%
0% – 10%
0% – 7%
23% – 33%
3% – 13%
9% – 19%
5% – 15%
55% – 65%
33% – 43%
(a)
(b)
These target allocations reflect targets that were approved in 2021 to take effect in the subsequent year.
Less than 1% of plan assets.
3 %
23 %
9 %
15 %
11 %
58 %
35 %
4 %
(b)
(b)
100 %
3 %
30 %
9 %
13 %
10 %
62 %
35 %
100 %
1 %
26 %
9 %
15 %
9 %
59 %
36 %
4 %
(b)
(b)
100 %
3 %
31 %
8 %
15 %
10 %
64 %
33 %
100 %
In general, the United States large-capitalization equity investments are passively managed or indexed, whereas the international,
global, United States small-capitalization, and United States mid-capitalization equity investments are actively managed by investment
managers. Debt securities include a broad range of fixed-income vehicles. Debt security investments in high-yield securities and non-United-
States-dollar-denominated securities are owned by the plans, but in limited quantities to reduce risk. Most of the debt security investments
are under active management by investment managers. Real estate investments include private real estate vehicles; however, Ameren does
not, by policy, hold direct investments in real estate property. In addition to the derivative investments included in the liability hedging
investment strategy described above, Ameren’s investment committee also allows investment managers to use derivatives, such as index
futures, foreign exchange futures, and options, in certain situations to increase or to reduce market exposure in an efficient and timely
manner.
Fair Value Measurements of Plan Assets
Investments in the pension and postretirement benefit plans were stated at fair value as of December 31, 2021. Fair value is defined as
the price that would be received for an asset in the principal or most advantageous market for the asset in an orderly transaction between
market participants on the measurement date. Cash and cash equivalents have initial maturities of three months or less and are recorded at
cost plus accrued interest. Investments traded in active markets on national or international securities exchanges are valued at closing prices
on the measurement date or, if that is not a business day, on the last business day before that date. Securities traded in over-the-counter
markets are valued by quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price
transparency. Investments measured under NAV as a practical expedient are based on the fair values of the underlying assets provided by
the funds and their administrators. The fair value of real estate investments is based on NAV; it is determined by annual appraisal reports
prepared by an independent real estate appraiser. Investments measured at NAV often provide for daily, monthly, or quarterly redemptions
with 60 or less days of notice depending on the fund. For some funds, redemption may also require approval from the fund’s board of
directors. Derivative contracts are valued at fair value, as determined by the investment managers (or independent third parties on behalf of
the investment managers), who use proprietary models and take into consideration exchange quotations on underlying instruments, dealer
quotations, and other market information.
137
The following table sets forth, by level within the fair value hierarchy discussed in Note 8 – Fair Value Measurements, the pension plans’
assets measured at fair value and NAV as of December 31, 2021 and 2020:
Level 1
December 31, 2021
NAV
Level 2
Total
Level 1
December 31, 2020
NAV
Level 2
Total
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Equity securities:
U.S. large-capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . .
U.S. small- and mid-capitalization . . . . . . . . . . . . . . . . . . . .
International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt securities:
Corporate bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Municipal bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
U.S. Treasury and agency securities . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Private equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Less: Medical benefit assets(a) . . . . . . . . . . . . . . . . . . . . . . . . .
Plus: Net receivables(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of pension plans’ assets . . . . . . . . . . . . . . . . . . . . .
—
$
—
$
116
$
116
$
—
$
—
$
145
$
145
—
558
372
—
—
—
—
17
—
—
947
$
—
—
—
—
545
50
1,450
11
—
—
2,056
$
1,381
—
531
621
27
—
—
—
228
1
2,905
$
1,381
558
903
621
572
50
1,450
28
228
1
5,908
(234)
71
$
—
513
375
—
—
—
3
(5)
—
—
886
$
—
—
—
—
506
50
1,325
8
—
—
1,889
$
1,511
—
492
546
17
—
—
—
208
2
2,921
$
1,511
513
867
546
523
50
1,328
3
208
2
5,696
(219)
33
$
5,745
$
5,510
(a) Medical benefit (health and welfare) component for accounts maintained in accordance with Section 401(h) of the Internal Revenue Code to fund a portion of the
postretirement obligation.
Receivables related to pending securities sales, offset by payables related to pending securities purchases.
(b)
The following table sets forth, by level within the fair value hierarchy discussed in Note 8 – Fair Value Measurements, the postretirement
benefit plans’ assets measured at fair value and NAV as of December 31, 2021 and 2020:
December 31, 2021
December 31, 2020
Level 1
Level 2
NAV
Total
Level 1
Level 2
NAV
Total
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . $
24
$
—
$
—
$
24
$
38
$
—
$
—
$
38
Equity securities:
U.S. large-capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . .
U.S. small- and mid-capitalization . . . . . . . . . . . . . . . . . . . .
International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt securities:
Municipal bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Plus: Medical benefit assets(a) . . . . . . . . . . . . . . . . . . . . . . . . .
Plus: Net receivables(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of postretirement benefit plans’ assets . . . . . . . . . . .
283
113
60
—
—
—
—
—
—
—
133
—
480
$
133
$
115
—
117
132
—
335
699
$
398
113
177
132
133
335
1,312
234
12
279
104
75
—
—
—
—
—
—
—
106
—
$
496
$
106
$
107
—
107
120
—
295
629
$
386
104
182
120
106
295
1,231
219
3
$
1,558
$
1,453
(a) Medical benefit (health and welfare) component for accounts maintained in accordance with Section 401(h) of the Internal Revenue Code to fund a portion of the
postretirement obligation. These 401(h) assets are included in the pension plan assets shown above.
Receivables related to pending securities sales, offset by payables related to pending securities purchases.
(b)
138
Net Periodic Benefit Cost
The following table presents the components of the net periodic benefit cost of Ameren’s pension and postretirement benefit plans
during 2021, 2020, and 2019:
Pension Benefits
2020
2019
2021
Postretirement Benefits
2020
2019
2021
Service cost(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Non-service cost components:
134
$
110
$
88
$
23
$
19
$
18
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
152
(297)
174
(291)
Amortization of:
Prior service credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial (gain) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total non-service cost components(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Net periodic benefit cost (income) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
—
73
(72) $
$
62
(1)
60
(58) $
$
52
187
(276)
(1)
25
(65)
23
33
(80)
(4)
(6)
39
(80)
(4)
(9)
$
$
(57) $
(34) $
(54) $
(35) $
43
(77)
(5)
(15)
(54)
(36)
(a) Service cost, net of capitalization, is reflected in “Operating Expenses - Other operations and maintenance” on Ameren’s statement of income.
(b) Non-service cost components are reflected in “Other Income, Net” on Ameren’s consolidated statement of income. See Note 6 – Other Income, Net for additional
information.
The Ameren Companies are responsible for their share of the pension and postretirement benefit costs. The following table presents the
pension costs and the postretirement benefit costs incurred for the years ended December 31, 2021, 2020, and 2019:
Pension Costs
Postretirement Costs
2021
2020
2019
2021
2020
2019
Ameren Missouri(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
$
29
34
(1)
22
32
(2)
$
5
$
(4) $
(5) $
20
(2)
(31)
1
(31)
1
62
$
52
$
23
$
(34) $
(35) $
(6)
(30)
—
(36)
(a)
Does not include the impact of the tracker for the difference between the level of pension and postretirement benefit costs incurred by Ameren Missouri and the level of
such costs included in customer rates.
The expected pension and postretirement benefit payments from qualified trust and company funds, which reflect expected future
service, as of December 31, 2021, are as follows:
Pension Benefits
Postretirement Benefits
Paid from
Qualified
Trust Funds
Paid from
Company
Funds
Paid from
Qualified
Trust Funds
Paid from
Company
Funds
2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2027 – 2031 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
267
274
279
284
288
1,476
$
2
2
3
3
3
12
$
59
60
61
61
60
296
2
2
2
2
2
9
The following table presents the assumptions used to determine net periodic benefit cost for our pension and postretirement benefit
plans for the years ended December 31, 2021, 2020, and 2019:
Pension Benefits
Postretirement Benefits
2021
2020
2019
2021
2020
2019
Discount rate at measurement date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.75 %
3.50 %
4.25 %
2.75 %
3.50 %
4.25 %
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase in future compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash balance pension plan interest crediting rate . . . . . . . . . . . . . . . . . . . . . . . . . . .
Medical cost trend rate (initial)(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Medical cost trend rate (ultimate)(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.50
3.50
5.00
(a)
(a)
7.00
3.50
5.00
(a)
(a)
7.00
3.50
5.00
(a)
(a)
6.50
3.50
(a)
5.00
5.00
7.00
3.50
(a)
5.00
5.00
7.00
3.50
(a)
5.00
5.00
(a)
(b)
Not applicable.
Initial and ultimate medical cost trend rate for certain Medicare-eligible participants is 3.00%.
139
Other
Ameren sponsors a 401(k) plan for eligible employees. The Ameren 401(k) plan covered all eligible Ameren employees at December 31,
2021. The plan allows employees to contribute a portion of their compensation in accordance with specific guidelines. Ameren matches a
percentage of the employee contributions up to certain limits. The following table presents the portion of the matching contribution to the
Ameren 401(k) plan attributable to each of the Ameren Companies for the years ended December 31, 2021, 2020, and 2019:
Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
21
16
1
38
$
$
20
17
1
38
$
$
19
16
—
35
2021
2020
2019
NOTE 11 – STOCK-BASED COMPENSATION
The 2014 Omnibus Incentive Compensation Plan is Ameren’s long-term stock-based compensation plan for eligible employees and
directors. It provides for a maximum of 8 million common shares to be available for grant to eligible employees and directors. At
December 31, 2021, there were 1.8 million common shares remaining for grant. Awards may be stock options, stock appreciation rights,
restricted stock, restricted stock units, performance shares, performance share units, cash-based awards, and other stock-based awards.
Ameren used newly issued shares to fulfill its stock-based compensation obligations for 2021, 2020, and 2019, and intends to use newly
issued shares to fulfill its stock-based compensation obligations for 2022.
The following table summarizes Ameren’s nonvested performance share unit and restricted stock unit activity for the year ended
December 31, 2021:
Performance Share Units –
Market Condition(a)
Performance Share Units –
Performance Condition(b)
Restricted Stock Units
Share
Units
Weighted-average Fair
Value per Share Unit
Shares
Weighted-average Fair
Value per Share Unit
Stock
Units
Weighted-average Fair
Value per Stock Unit
Nonvested at January 1, 2021(c) . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . .
Forfeitures . . . . . . . . . . . . . . . . . . . .
Vested and undistributed(d) . . . . . . . .
Vested and distributed . . . . . . . . . . .
Performance share adjustment . . . . .
Nonvested at December 31, 2021(e) . .
464,139
$
266,081
(21,143)
(186,792)
(93,499)
—
428,786
$
73.34
87.11
80.77
77.91
62.88
—
81.81
31,896
$
42,672
(2,449)
(15,134)
—
(13,881)
43,104
$
76.66
78.11
77.55
77.27
—
77.54
77.54
303,695
$
129,723
(10,209)
(87,427)
(87,597)
—
248,185
$
68.52
78.17
74.88
73.13
56.38
—
75.97
(a)
(b)
(c)
(d)
(e)
The exact number of shares issued pursuant to a share unit varies from 0% to 200% of the target award, depending on actual company performance relative to the
specified market conditions. Compensation cost on nonforfeited awards is recognized regardless of whether Ameren achieves the specified market conditions.
The exact number of shares issued pursuant to a share unit varies from 0% to 200% of the target award, depending on actual company performance relative to the
performance goals. Compensation cost is recognized ratably over the requisite service period only for awards for which it is probable that the performance condition will be
satisfied. The performance share adjustment represents the change in the probability that a performance condition will be satisfied.
Does not include 366,243 market condition performance share units, 7,607 performance shares based on Ameren’s clean energy transition, and 160,034 restricted stock
units that were vested and undistributed.
Vested and undistributed units are awards that vest on a pro-rata basis due to attainment of retirement eligibility by certain employees, but have not yet been distributed.
For vested and undistributed performance share units, the number of shares issued for retirement-eligible employees will vary depending on actual performance over the
three-year performance period.
Does not include 357,575 market condition performance share units, 22,739 performance shares based on Ameren’s clean energy transition, and 164,000 restricted stock
units that were vested and undistributed.
Performance Share Units – Market Condition
A market condition performance share unit vests and entitles an employee to receive shares of Ameren common stock (plus
accumulated dividends) if, at the end of the three-year performance period, certain specified market conditions have been met and if the
individual remains employed by Ameren through the required vesting period. The vesting period for share units awarded extends beyond the
three-year performance period to the payout date, which is approximately 38 months after the grant date. In the event of a participant’s death
or retirement at age 55 or older with five years or more of service, awards vest on a pro-rata basis over the three-year performance period.
The exact number of shares issued pursuant to a share unit varies from 0% to 200% of the target award, depending on actual company
performance relative to the specified market conditions.
The fair value of each share unit is based on Ameren’s closing common share price at December 31 of the year prior to the award year
and a Monte Carlo simulation. The Monte Carlo simulation is used to estimate expected share payout based on Ameren’s TSR for a three-
year performance period relative to the designated peer group beginning January 1st of the award year. The simulation can produce a
140
greater fair value for the share unit than the applicable closing common share price because it includes the weighted payout scenarios in
which an increase in the share price has occurred and/or in which the payout is above 100% due to Ameren’s projected TSR performance.
The significant assumptions used to calculate fair value also include a three-year risk-free rate, Ameren’s common stock volatility, and
volatility for the peer group. The following table presents the fair value of each share unit along with the significant assumptions used to
calculate the fair value of each share unit for the years ended December 31, 2021, 2020, and 2019:
Fair value of share units awarded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Three-year risk-free rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren’s common stock volatility(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Volatility range for the peer group(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a)
Based on a historical period that is equal to the remaining term of the performance period as of the grant date.
Performance Share Units – Performance Condition
2021
$87.11
0.17%
2020
$82.49
1.62%
2019
$67.42
2.46%
28%
15%
26% – 36% 14% – 28% 15% – 25%
17%
A performance condition share unit vests and entitles an employee to receive shares of Ameren common stock (plus accumulated
dividends) if, at the end of the three-year performance period, Ameren has met the specified performance condition and if the individual
remains employed by Ameren through the required vesting period. The vesting period for share units awarded extends beyond the three-year
performance period to the payout date, which is approximately 38 months after the grant date. In the event of a participant’s death or
retirement at age 55 or older with five years or more of service, awards vest on a pro-rata basis over the three-year performance period. The
exact number of shares issued pursuant to a share unit varies from 0% to 200% of the target award, depending on actual performance
conditions achieved. The specified performance condition is based on Ameren’s clean energy transition. The grant-date fair value for an
individual outcome of a performance condition is determined by Ameren’s closing common share price on the grant date.
Restricted Stock Units
Restricted stock units vest and entitle an employee to receive shares of Ameren common stock (plus accumulated dividends) if the
individual remains employed with Ameren through the payment date of the awards. Generally, in the event of a participant’s death or
retirement at age 55 or older with five years or more of service, awards vest on a pro-rata basis. The payout date of the awards is
approximately 38 months after the grant date. The fair value of each restricted stock unit is determined by Ameren’s closing common share
price on the grant date.
Stock-Based Compensation Expense
The following table presents the stock-based compensation expense for the years ended December 31, 2021, 2020, and 2019:
Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Income tax benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2021
2020
2019
5
3
14
22
6
16
$
$
5
3
13
21
6
15
$
$
4
3
13
20
5
15
(a)
Represents compensation expense for employees of Ameren Services. These amounts are not included in the Ameren Missouri and Ameren Illinois amounts above.
Ameren settled performance share units and restricted stock units of $50 million, $58 million, and $83 million for the years ended
December 31, 2021, 2020, and 2019. There were no significant stock-based compensation costs capitalized during the years ended
December 31, 2021, 2020, and 2019. As of December 31, 2021, total compensation cost of $35 million related to nonvested awards not yet
recognized is expected to be recognized over a weighted-average period of 21 months.
For the years ended December 31, 2021, 2020, and 2019, excess tax benefits associated with the settlement of stock-based
compensation awards reduced income tax expense by $5 million, $8 million, and $15 million, respectively.
NOTE 12 – INCOME TAXES
Missouri Income Tax Rate
In 2018, legislation modifying Missouri tax law was enacted to decrease the state’s corporate income tax rate from 6.25% to 4%,
effective January 1, 2020. As a result, in 2018, Ameren’s and Ameren Missouri’s accumulated deferred tax balances were revalued, resulting
in a net decrease of $122 million to their accumulated deferred tax liability, which was offset by a regulatory liability. Additionally, Ameren
recorded an immaterial amount to income tax expense. As a result of the March 2020 MoPSC electric rate order, the effect of this tax
141
decrease was reflected in customer rates on April 1, 2020. This income tax decrease did not have a material impact on the net income of
Ameren (parent) and nonregistrant subsidiaries.
The following table presents the principal reasons for the difference between the effective income tax rate and the federal statutory
corporate income tax rate for the years ended December 31, 2021, 2020, and 2019:
Ameren Missouri
Ameren Illinois
Ameren
2021
Federal statutory corporate income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increases (decreases) from:
Amortization of excess deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of deferred investment tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Renewable and other tax credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effective income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2020
Federal statutory corporate income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increases (decreases) from:
Amortization of excess deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of deferred investment tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effective income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2019
Federal statutory corporate income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increases (decreases) from:
Amortization of excess deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of deferred investment tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effective income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a)
21 %
(15)
(1)
(7)
3
—
1 %
21 %
(16)
(1)
3
—
7 %
21 %
(11)
(1)
5
—
14 %
21 %
(3)
—
—
7
—
25 %
21 %
(3)
(1)
7
—
24 %
21 %
(4)
—
7
—
24 %
(a)
21 %
(8)
—
(3)
5
(1)
14 %
21 %
(9)
(1)
5
(1)
15 %
21 %
(7)
(1)
6
(1)
18 %
(a)
Includes credits associated with the High Prairie Renewable and Atchison Renewable energy centers. Ameren Missouri placed the High Prairie Renewable Energy Center
in service in December 2020. Additionally, Ameren Missouri placed in service the wind turbines at its Atchison Renewable Energy Center throughout the first half of 2021.
The benefit of the credits associated with Missouri renewable energy standard compliance is refunded to customers through the RESRAM.
142
The following table presents the components of income tax expense (benefit) for the years ended December 31, 2021, 2020, and 2019:
Ameren Missouri
Ameren Illinois
Other
Ameren
2021
Current taxes:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
—
—
(15) $
(7)
Deferred taxes:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of excess deferred income taxes . . . . . . . . . . . . . . . . . . . . .
Amortization of deferred investment tax credits . . . . . . . . . . . . . . . . . . . .
Total income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2020
Current taxes:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred taxes:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of excess deferred income taxes . . . . . . . . . . . . . . . . . . . . .
Amortization of deferred investment tax credits . . . . . . . . . . . . . . . . . . . .
Total income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2019
Current taxes:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred taxes:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of excess deferred income taxes . . . . . . . . . . . . . . . . . . . . .
Amortization of deferred investment tax credits . . . . . . . . . . . . . . . . . . . .
Total income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
$
22
1
(15)
4
(1)
—
11
$
(24) $
8
24
(10)
(1)
—
$
$
65
23
(81)
(4)
3
14
3
82
15
(75)
(5)
$
$
120
59
(14)
—
143
12
(6)
81
52
(15)
—
34
$
124
$
(3) $
$
65
22
37
5
(56)
(5)
$
19
11
66
29
(15)
—
68
$
110
$
(88) $
(14)
82
25
(1)
—
4
$
7
(6)
170
86
(96)
(4)
157
2
5
187
57
(91)
(5)
155
(4)
19
185
59
(72)
(5)
182
The following table presents the accumulated deferred income tax assets and liabilities recorded as a result of temporary differences
and accumulated deferred investment tax credits at December 31, 2021 and 2020:
Ameren Missouri
Ameren Illinois
Other
Ameren
2021
Accumulated deferred income taxes, net liability (asset):
Plant-related . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Regulatory assets and liabilities, net . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred employee benefit costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net accumulated deferred income tax liabilities (assets) . . . . . . . . . .
Accumulated deferred investment tax credits . . . . . . . . . . . . . . . . . . . . . .
Accumulated deferred income taxes and investment tax credits . . . . . . . . $
2020
Accumulated deferred income taxes, net liability (asset):
Plant-related . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Regulatory assets and liabilities, net . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred employee benefit costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net accumulated deferred income tax liabilities (assets) . . . . . . . . . .
Accumulated deferred investment tax credits . . . . . . . . . . . . . . . . . . . . . .
Accumulated deferred income taxes and investment tax credits . . . . . . . . $
2,188
$
1,715
$
226
$
(259)
(52)
(68)
13
1,822
30
(199)
17
(46)
71
1,558
—
1,852
$
1,558
$
(25)
(53)
(84)
25
89
—
89
$
2,112
$
1,559
$
205
$
(285)
(58)
(26)
(35)
1,708
34
1,742
$
(207)
8
(6)
13
1,367
—
1,367
$
(23)
(54)
(65)
39
102
—
102
$
4,129
(483)
(88)
(198)
109
3,469
30
3,499
3,876
(515)
(104)
(97)
17
3,177
34
3,211
143
The following table presents the components of accumulated deferred income tax assets relating to net operating loss carryforwards and
tax credit carryforwards at December 31, 2021 and 2020:
Ameren Missouri
Ameren Illinois
Other
Ameren
2021
Net operating loss carryforwards:
Federal(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
State(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Total net operating loss carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . $
Tax credit carryforwards:
Federal(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
State(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total tax credit carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2020
Net operating loss carryforwards:
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
$
Total net operating loss carryforwards
Tax credit carryforwards:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total tax credit carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
(a) Will not expire.
(b) Will expire between 2032 and 2041.
(c) Will expire between 2030 and 2041.
(d) Will expire between 2022 and 2026.
Uncertain Tax Positions
2
1
3
65
—
65
—
—
26
—
26
$
$
$
$
$
$
$
$
$
17
25
42
3
1
4
3
3
3
—
3
$
$
$
$
$
$
$
$
$
15
5
20
$
$
$
58
$
6
64
$
4
4
54
7
61
$
$
$
$
34
31
65
126
7
133
7
7
83
7
90
As of December 31, 2021 and 2020, the Ameren Companies did not record any uncertain tax positions.
Ameren is a part of the IRS’s compliance assurance process program, which involves real-time review of compliance with federal
income tax law. State income tax returns are generally subject to examination for a period of three years after filing. The state impact of any
federal changes remains subject to examination by various states for up to one year after formal notification to the states. Ameren’s federal
tax returns for the 2015, 2017, 2018, 2019, and 2020 tax years are open, but, at the time of this filing, the Ameren Companies do not have
material income tax issues under examination, administrative appeals, or litigation.
Ameren Missouri has an uncertain tax position tracker. Under Missouri’s regulatory framework, uncertain tax positions do not reduce
Ameren Missouri’s electric rate base. When an uncertain income tax position liability is resolved, the MoPSC requires, through the uncertain
tax position tracker, the creation of a regulatory asset or regulatory liability to reflect the time value, with a return at the applicable WACC
included in each of the electric rate orders in effect before the tax position was resolved, of the difference between the uncertain tax position
liability that was excluded from rate base and the final tax liability. The resulting regulatory asset or liability will affect earnings in the year it is
created. It will then be amortized over three years, beginning on the effective date of new rates established in the next electric service
regulatory rate review.
NOTE 13 – RELATED-PARTY TRANSACTIONS
In the normal course of business, Ameren Missouri and Ameren Illinois engage in affiliate transactions. These transactions primarily
consist of natural gas and power purchases and sales, services received or rendered, and borrowings and lendings. Transactions between
Ameren’s subsidiaries are reported as affiliate transactions on their individual financial statements, but those transactions are eliminated in
consolidation for Ameren’s consolidated financial statements, except as noted in Software Licensing Agreement discussion below. Below are
the material related-party agreements.
Electric Power Supply Agreements
Ameren Illinois must acquire capacity and energy sufficient to meet its obligations to customers. Ameren Illinois uses periodic RFP
processes, administered by the IPA and approved by the ICC, to contract capacity and energy on behalf of its customers. Ameren Missouri
participates in the RFP process and has been a winning supplier for certain periods.
144
Capacity Supply Agreements
In procurement events in 2021, Ameren Missouri contracted to supply a portion of Ameren Illinois’ capacity requirements for $2 million
from June 2022 through May 2023.
Energy Product Agreements
Based on the outcome of IPA-administered procurement events, Ameren Missouri and Ameren Illinois have entered into energy product
agreements by which Ameren Missouri agreed to sell, and Ameren Illinois agreed to purchase, a set amount of MWhs at a predetermined
price over a specified period of time. The following table presents the specified performance period, price, and amount of MWhs included in
the agreements:
IPA Procurement Event
Performance Period
April 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 2019 – May 2020
April 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June 2019 – September 2020
April 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
January 2020 – December 2021
September 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
April 2020 – November 2021
September 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
September 2021 – November 2022
April 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
July 2022 – November 2022
September 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
January 2022 – September 2023
MWh
85,600
110,000
288,000
170,800
204,800
33,600
136,000
$
Average Price
per MWh
34
32
35
29
31
34
37
Collateral Postings
Under the terms of the Illinois energy product agreements entered into through RFP processes administered by the IPA, suppliers must
post collateral under certain market conditions to protect Ameren Illinois in the event of nonperformance. The collateral postings are
unilateral, which means that only the suppliers can be required to post collateral. Therefore, Ameren Missouri, as a winning supplier in the
RFP process, may be required to post collateral. As of December 31, 2021 and 2020, there were no collateral postings required of Ameren
Missouri related to the Illinois energy product agreements.
Interconnection Agreements
Ameren Missouri and Ameren Illinois are parties to an interconnection agreement that governs the connection of their respective
transmission lines and other facilities used for the distribution of power. These agreements have no contractual expiration date, but may be
terminated by either party with three years’ notice.
Ameren Missouri and ATXI are parties to an interconnection agreement that governs the connection of the High Prairie Renewable
Energy Center to an ATXI transmission line that allows Ameren Missouri to distribute power generated from the High Prairie Renewable
Energy Center. See Note 15 – Supplemental Information for further information on the acquisition of the High Prairie Renewable Energy
Center.
Support Services Agreements
Ameren Services provides support services to its affiliates. The costs of support services including wages, employee benefits,
professional services, and other expenses, are based on, or are an allocation of, actual costs incurred. The support services agreement can
be terminated at any time by the mutual agreement of Ameren Services and that affiliate or by either party with 60 days’ notice before the end
of a calendar year.
In addition, Ameren Missouri and Ameren Illinois provide affiliates with access to their facilities for administrative purposes and with use
of other assets. The costs of the rent and facility services and other assets are based on, or are an allocation of, actual costs incurred.
Ameren Missouri and Ameren Illinois also provide storm-related and miscellaneous support services to each other on an as-needed
basis.
At December 31, 2021, Ameren Missouri and Ameren Illinois had long-term receivables included in “Other assets” from Ameren
Services of $77 million and $80 million, respectively, related to Ameren Services’ allocated portion of Ameren’s pension and postretirement
benefit plans.
Transmission Services
Ameren Missouri and Ameren Illinois receives transmission services from ATXI for their retail load.
145
Electric Transmission Maintenance and Construction Agreements
ATXI entered into separate agreements with Ameren Missouri and Ameren Illinois in which Ameren Missouri or Ameren Illinois, as
applicable, may perform certain maintenance and construction services related to ATXI’s electric transmission assets.
Money Pool
See Note 4 – Short-term Debt and Liquidity for a discussion of affiliate borrowing arrangements.
Software Licensing Agreement
In September 2019, Ameren Missouri purchased a license for advanced metering infrastructure software from Ameren Illinois. The
amount of the $24 million cost-based transaction price over the $5 million remaining carrying value of the software was recorded as revenue
by Ameren Illinois, with $14 million of revenue recorded at Ameren Illinois Electric Distribution and $5 million recorded at Ameren Illinois
Natural Gas. The revenue recorded at Ameren Illinois Electric Distribution was reflected in formula ratemaking, which resulted in no impact to
net income. Per authoritative accounting guidance for sales to rate-regulated entities, the revenue recognized by Ameren Illinois was not
eliminated upon consolidation by Ameren. Ameren Missouri’s cost-based investment of $24 million was included in “Property, Plant, and
Equipment, Net.”
Tax Allocation Agreement
See Note 1 – Summary of Significant Accounting Policies for a discussion of the tax allocation agreement. The following table presents
the affiliate balances related to income taxes for Ameren Missouri and Ameren Illinois as of December 31, 2021 and December 31, 2020:
Income taxes payable to parent(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Income taxes receivable from parent(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
— $
27
$
8
18
— $
9
6
15
2021
2020
Ameren Missouri
Ameren Illinois
Ameren Missouri
Ameren Illinois
(a)
(b)
Included in “Accounts payable – affiliates” on the balance sheet.
Included in “Accounts receivable – affiliates” on the balance sheet.
Capital Contributions
The following table presents cash capital contributions received from Ameren (parent) by Ameren Missouri and Ameren Illinois for the
years ended December 31, 2021, 2020, and 2019:
Ameren Missouri(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Ameren Illinois(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
207
262
$
491
464
124
15
2021
2020
2019
(a)
Includes capital contributions made as a result of the tax allocation agreement.
146
Effects of Related-party Transactions on the Statement of Income
The following table presents the impact on Ameren Missouri and Ameren Illinois of related-party transactions for the years ended
December 31, 2021, 2020, and 2019. It is based primarily on the agreements discussed above and the money pool arrangements discussed
in Note 4 – Short-term Debt and Liquidity.
Agreement
Income Statement Line Item
Ameren
Missouri
Ameren
Illinois
Ameren Missouri power supply agreements
with Ameren Illinois
Ameren Missouri and Ameren Illinois
rent and facility services
Operating Revenues
Operating Revenues
Ameren Missouri and Ameren Illinois miscellaneous
support services and services provided to ATXI
Operating Revenues
Ameren Missouri software licensing
with Ameren Illinois
Total Operating Revenues
Ameren Illinois power supply
agreements with Ameren Missouri
Ameren Missouri and Ameren Illinois
transmission services from ATXI
Total Purchased Power
Ameren Missouri and Ameren Illinois
rent and facility services
Ameren Services support services
agreement
Total Other Operations and
Maintenance Expenses
Money pool borrowings (advances)
Operating Revenues
Purchased Power
Purchased Power
Other Operations and
Maintenance
Other Operations and
Maintenance
(Interest Charges)
Other Income, Net
2021 $
2020
2019
2021
2020
2019
2021
2020
2019
2021
2020
2019
2021 $
2020
2019
2021 $
2020
2019
2021
2020
2019
2021 $
2020
2019
2021 $
2020
2019
2021
2020
2019
16 $
11
3
26
26
27
(b)
3
1
(a)
(a)
(a)
42 $
40
31
(a) $
(a)
(a)
4
(a)
(a)
4 $
(a)
(a)
1 $
(b)
2
147
140
135
2021 $
148 $
2020
2019
2021 $
2020
2019
140
137
(b) $
(b)
(b)
(a)
(a)
(a)
1
1
2
5
1
2
(a)
(a)
19
6
2
23
16
11
3
1
2
2
17
13
5
4
4
5
137
133
127
141
137
132
(b)
(b)
(b)
(a)
(b)
Not applicable.
Amount less than $1 million.
NOTE 14 – COMMITMENTS AND CONTINGENCIES
We are involved in legal, tax, and regulatory proceedings before various courts, regulatory commissions, authorities, and governmental
agencies with respect to matters that arise in the ordinary course of business, some of which involve substantial amounts of money. We
believe that the final disposition of these proceedings, except as otherwise disclosed in the notes to our financial statements, will not have a
material adverse effect on our results of operations, financial position, or liquidity.
See also Note 1 – Summary of Significant Accounting Policies, Note 2 – Rate and Regulatory Matters, Note 9 – Callaway Energy
Center, Note 13 – Related-party Transactions, and Note 15 – Supplemental Information in this report.
147
Environmental Matters
Our electric generation, transmission, and distribution and natural gas distribution and storage operations must comply with a variety of
statutes and regulations relating to the protection of the environment and human health and safety including permitting programs
implemented via federal, state, and local authorities. 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. Additionally, the use and handling of various chemicals or hazardous materials require release prevention plans and emergency
response procedures. We employ dedicated personnel knowledgeable in environmental matters to oversee our business activities’
compliance with regulatory requirements.
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. Clean Air Act regulations that apply to the electric utility industry include the
NSPS, the CSAPR, the MATS, and the National Ambient Air Quality Standards, which are subject to periodic review for certain pollutants.
Collectively, these regulations cover a variety of pollutants, such as SO2, particulate matter, NOx, mercury, toxic metals, and acid gases, and
CO2 emissions from new power plants. Regulations implementing the Clean Water Act govern both intake and discharges of water and may
require 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. Depending upon the scope of modifications ultimately required by state regulators, these
capital expenditures 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. The
individual or combined effects of existing and new environmental regulations could result in significant capital expenditures, increased
operating costs, or the closure or alteration of operations at some of Ameren Missouri’s energy centers. Ameren and Ameren Missouri expect
that such compliance costs would be recoverable through rates, subject to MoPSC prudence review, but the timing of costs and their
recovery could be subject to regulatory lag.
Ameren and Ameren Missouri estimate that they will need to make capital expenditures of $125 million to $175 million from 2022
through 2026 in order to comply with existing environmental regulations. Additional environmental controls beyond 2026 could be required.
This estimate of capital expenditures includes ash pond closure and corrective action measures required by the CCR Rule, and the effluent
limitation guidelines applicable to steam electric generating units, and potential modifications to cooling water intake structures at existing
power plants under Clean Water Act rules, all of which are discussed below. In addition to planned retirements of coal-fired energy centers as
set forth in the 2020 IRP and as noted in the NSR and Clean Air Act litigation discussed below, Ameren Missouri’s current plan for
compliance with existing air emission regulations includes natural gas-fired energy center retirements as discussed below in Illinois Emission
Standards, burning low-sulfur coal and installing new or optimizing existing air pollution control equipment. The actual amount of capital
expenditures required to comply with existing environmental regulations may vary substantially from the above estimates because of
uncertainty as to future permitting requirements made by state regulators and the EPA, potential revisions to regulatory obligations, and the
cost of potential compliance strategies, among other things.
The following sections describe the more significant environmental laws and rules and environmental enforcement and remediation
matters that affect or could affect our operations. The EPA has initiated an administrative review of several regulations and proposed
amendments to regulations and guidelines, including to the effluent limitation guidelines and the CCR Rule, which could ultimately result in
the revision of all or part of such rules. Additionally, Ameren Missouri’s wind generation facilities may be subject to operating restrictions to
limit the impact on protected species. From April 2021 through October 2021, Ameren Missouri's High Prairie Renewable Energy Center
curtailed nighttime operations to limit impacts on protected species. Ameren Missouri resumed nighttime operations in November 2021 as the
critical biological season had ended. Seasonal nighttime curtailment will begin again in April 2022, but the extent and duration of the
curtailment is unknown at this time as assessment of mitigation technologies is ongoing. Ameren Missouri does not anticipate these operating
curtailments to result in significant impacts on its results of operations, financial position, or liquidity.
Clean Air Act
Federal and state laws, including CSAPR, regulate emissions of SO2 and NOx through the reduction of emissions at their source and the
use and retirement of emission allowances. CSAPR is implemented through a series of phases, and the second phase became effective in
2017. Additional emission reduction requirements may apply in subsequent years. Ameren Missouri complies with current CSAPR
requirements by minimizing emissions through the use of low-sulfur coal, operation of two scrubbers at its Sioux Energy Center, and
optimization of other existing air pollution control equipment. Ameren Missouri could incur additional costs to lower its emissions at one or
more of its energy centers to comply with additional CSAPR requirements in future years. These additional costs for compliance are expected
to be recovered from customers through the FAC or higher base rates.
148
CO2 Emissions Standards
The EPA’s Affordable Clean Energy Rule repealed the Clean Power Plan and replaced it with a new rule that established emission
guidelines for states to follow in developing plans to limit CO2 emissions and identified certain efficiency measures as the best system of
emission reduction for coal-fired electric generating units. In January 2021, the United States Court of Appeals for the District of Columbia
Circuit vacated the Affordable Clean Energy Rule, and ruled that the EPA had the discretion to consider emission reduction measures that
include efficiency measures and generation shifting to lower carbon emissions. The United States Supreme Court agreed to review the court
of appeals’ ruling and oral arguments will occur in February 2022 with a decision expected by mid-2022. A decision by the United States
Supreme Court could impact the EPA’s development of new regulations to address carbon emissions from coal- and natural gas-fired electric
generating units. At this time, Ameren Missouri cannot predict the outcome of the legal challenge or future rulemakings. As such, any impact
on the results of operations, financial position, and liquidity of Ameren and Ameren Missouri is uncertain.
NSR and Clean Air Act Litigation
In January 2011, the United States Department of Justice, on behalf of the EPA, filed a complaint against Ameren Missouri in the United
States District Court for the Eastern District of Missouri alleging that in performing projects at its coal-fired Rush Island Energy Center in 2007
and 2010, Ameren Missouri violated provisions of the Clean Air Act and Missouri law. 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. Ameren Missouri
appealed both the liability and remedy orders and, in August 2021, the United States Court of Appeals for the Eighth Circuit issued a decision
that affirmed the liability ruling and the district court’s remedy order as it related to the installation of a flue gas desulfurization system at the
Rush Island Energy Center, but reversed the order as it related to the installation of a dry sorbent injection system at the Labadie Energy
Center. In November 2021, the court of appeals issued an order denying requests for consideration previously sought by both Ameren
Missouri and the United States Department of Justice.
Based on its assessment of available legal, operational and regulatory alternatives, Ameren Missouri has determined not to further
appeal the court rulings and, in December 2021, filed a motion 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. The district
court is under no deadline to issue a ruling revising the remedy order. In January 2022, the MISO completed a preliminary assessment
regarding potential impacts of the retirement to the regional electric power system, which indicated transmission upgrades and voltage
support would be needed in advance of the retirement to address reliability concerns. In February 2022, Ameren Missouri expects to formally
notify the MISO of its intent to retire the Rush Island Energy Center. Upon receipt of the formal notification, the MISO will conduct a final
reliability assessment. The MISO must also separately approve the specific upgrades and transmission support required to address reliability
concerns noted in the assessment. Related to this matter, in February 2022, the MoPSC issued an order directing the MoPSC staff to review
the planned accelerated retirement of the Rush Island Energy Center. See Note 2 – Rate and Regulatory Matters for additional information.
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 that became effective in
August 2021. As of December 31, 2021, the Rush Island Energy Center had a net plant balance of approximately $0.6 billion included in
plant to be abandoned, net, within “Property, Plant, and Equipment, Net” and a rate base of approximately $0.4 billion. See Note 1 –
Summary of Significant Accounting Policies for additional information regarding plant to be abandoned, net. In addition, Ameren Missouri
expects to file an update to the 2020 IRP with the MoPSC in the first half of 2022 to reflect the planned acceleration of the retirement of the
Rush Island Energy Center from 2039, the retirement year for the facility as reflected in the 2020 IRP and reflected in depreciation rates
approved by the December 2021 MoPSC electric rate order.
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.
Clean Water Act
The EPA’s regulations implementing Section 316(b) of the Clean Water Act require power plant operators to evaluate cooling water
intake structures and identify measures for reducing the number of aquatic organisms impinged on a power plant’s cooling water intake
screens or entrained through the plant’s cooling water system. All of Ameren Missouri’s coal-fired and nuclear energy centers are subject to
the cooling water intake structures rule. Requirements of the rule are implemented by state regulators through the permit renewal process of
each power plant’s water discharge permit, which is expected to be completed by 2023 for Ameren Missouri.
In 2015, the EPA issued a rule to revise the effluent limitation guidelines applicable to steam electric generating units. These guidelines
established national standards for water discharges, prohibit effluent discharges of certain waste streams, and impose more stringent
limitations on certain water discharges from power plants. To meet the requirements of the guidelines, Ameren Missouri installed dry ash
149
handling systems and in 2020 completed construction of wastewater treatment facilities at three of its four coal-fired energy centers. The
Meramec Energy Center is scheduled to retire in 2022 and, as a result, does not require new wastewater and dry ash handling systems.
CCR Management
The EPA’s CCR Rule establishes requirements for the management and disposal of CCR from coal-fired power plants and will result in
the closure of surface impoundments at Ameren Missouri’s energy centers. Ameren Missouri completed the closure of all surface
impoundments at two of its facilities in 2021, and has made significant progress by closing several impoundments at its other two facilities.
Ameren Missouri plans to complete the closures of the remaining surface impoundments in 2023. In January 2022, Ameren Missouri received
notice of a proposed determination by the EPA that it has rejected Ameren Missouri’s requests to extend the timeline for operating certain
impoundments located at the Sioux and Meramec energy centers. Compliance with the CCR Rule’s requirements for closure of the
impoundments would be required 135 days after the EPA issues a final determination, which Ameren Missouri expects to be issued in the
spring of 2022. If Ameren Missouri was no longer able to use the surface impoundments at the Sioux or Meramec energy centers, Ameren
Missouri would not be able to operate the energy centers unless an alternative for handling the CCR material is in place. Ameren Missouri
plans to retire the Meramec Energy Center in 2022, and is accelerating its construction plans to build a CCR Rule-compliant impoundment at
the Sioux Energy Center to allow for continued operations. Additionally, Ameren Missouri is seeking a reliability determination from the MISO,
which, if granted, would extend the deadline to comply with the requirement to close the impoundments and allow the energy centers to
operate. Ameren Missouri does not expect that this matter will have a material adverse effect on its results of operations, financial position, or
liquidity.
Ameren and Ameren Missouri have AROs of $76 million recorded on their respective balance sheets as of December 31, 2021,
associated with CCR storage facilities. Ameren Missouri estimates it will need to make capital expenditures of $60 million to $80 million from
2022 through 2026 to implement its CCR management compliance plan, which includes installation of groundwater monitoring equipment
and groundwater treatment facilities.
Remediation
The Ameren Companies are involved in a number of remediation actions to clean up sites impacted by the use or disposal of materials
containing hazardous substances. Federal and state laws can require responsible parties to fund remediation regardless of their degree of
fault, the legality of original disposal, or the ownership of a disposal site.
As of December 31, 2021, Ameren Illinois has remediated the majority of the 44 former MGP sites in Illinois and could substantially
conclude remediation efforts at the remaining sites by 2023. The ICC allows Ameren Illinois to recover such remediation and related litigation
costs from its electric and natural gas utility customers through environmental cost riders that are subject to annual prudence reviews by the
ICC. As of December 31, 2021, Ameren Illinois estimated the remaining obligation related to these former MGP sites at $71 million to
$125 million. Ameren and Ameren Illinois recorded a liability of $71 million to represent the estimated minimum obligation for these sites, as
no other amount within the range was a better estimate.
The scope of the remediation activities at these former MGP sites may increase as remediation efforts continue. Considerable
uncertainty remains in these estimates because many site-specific factors can influence the actual costs, including unanticipated
underground structures, the degree to which groundwater is encountered, regulatory changes, local ordinances, and site accessibility. The
actual costs and timing of completion may vary substantially from these estimates.
Our operations or those of our predecessor companies involve the use of, disposal of, and, in appropriate circumstances, the cleanup of
substances regulated under environmental laws. We are unable to determine whether such historical practices will result in future
environmental commitments or will affect our results of operations, financial position, or liquidity.
Illinois Emission Standards
The IETL established emission standards that became effective in September 2021. Ameren Missouri's natural gas-fired energy centers
in Illinois will be subject to limits on emissions, including CO2 and NOx, equal to their unit-specific average emissions from 2018 through
2020, for any rolling twelve-month period beginning October 1, 2021, through 2029. Further reductions to emissions limits will become
effective between 2030 and 2040, which could limit the operations of Ameren Missouri's five natural gas-fired energy centers located in the
state of Illinois, and will result in the closure of one or more energy centers earlier than anticipated. 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 as necessary. Ameren Missouri is reviewing the emission standards and the effect they may have
on its generation strategy, including any increases in capital expenditures or operating costs, and changes to the useful lives of the five
natural gas-fired energy centers. Ameren Missouri expects to file an update to the 2020 IRP with the MoPSC in the first half of 2022 to reflect,
among other things, the impact of these new emissions standards.
150
NOTE 15 – SUPPLEMENTAL INFORMATION
Cash, Cash Equivalents, and Restricted Cash
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheets and the
statements of cash flows as of December 31, 2021 and 2020:
December 31, 2021
December 31, 2020
Ameren
Ameren
Missouri
Ameren
Illinois
Ameren
Ameren
Missouri
Ameren
Illinois
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
8 $
— $
Restricted cash included in “Other current assets” . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restricted cash included in “Other assets” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restricted cash included in “Nuclear decommissioning trust fund” . . . . . . . . . . . . . . . . .
16
127
4
4
—
4
—
6
127
—
$
139 $
136 $
17
141
4
5
—
4
Total cash, cash equivalents, and restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
155 $
8 $
133
$
301 $
145 $
—
6
141
—
147
Restricted cash included in “Other current assets” primarily represents funds held by an irrevocable Voluntary Employee Beneficiary
Association (VEBA) trust, which provides health care benefits for active employees. Restricted cash included in “Other assets” on Ameren’s
and Ameren Illinois’ balance sheets primarily represents amounts collected under a cost recovery rider restricted for use in the procurement
of renewable energy credits and amounts in a trust fund restricted for the use of funding certain asbestos-related claims.
Accounts Receivable
“Accounts receivable – trade” on Ameren’s and Ameren Illinois’ balance sheets include certain receivables purchased at a discount from
alternative retail electric suppliers that elect to participate in the utility consolidated billing program. At December 31, 2021 and 2020, “Other
current liabilities” on Ameren’s and Ameren Illinois’ balance sheets included payables for purchased receivables of $27 million and
$28 million, respectively.
The following table provides a reconciliation of the beginning and ending amount of the allowance for doubtful accounts for the years
ended December 31, 2021 and 2020:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Bad debt expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net write-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
16
5
(8)
13
Ameren
Missouri
December 31, 2021
December 31, 2020
Ameren
Illinois(a)
$
34
(b)
4
(22)
16
$
Ameren
Ameren
Missouri
Ameren
Illinois(a)
Ameren
$
$
50
9
(30)
29
$
$
7 $
15
(6)
16 $
10 $
33
(9)
34 $
17
48
(15)
50
(a)
(b)
Ameren Illinois has rate-adjustment mechanisms that allow it to recover the difference between its actual net bad debt write-offs under GAAP, including those associated
with receivables purchased from alternative retail electric suppliers, and the amount of net bad debt write-offs included in its base rates.
In 2021, Ameren Illinois’ bad debt expense was reduced as a result of incremental state funding received for customer bill assistance. The incremental state funding
granted relief to low-income customers at risk of service disconnection resulting from the impacts of the COVID-19 pandemic.
Net write-offs increased for the year ended December 31, 2021 due to the resumption of disconnection activities for nonpayment. See
Note 2 – Rate and Regulatory Matters for additional information.
Inventories
The following table presents the components of inventories for each of the Ameren Companies at December 31, 2021 and 2020:
December 31, 2021
December 31, 2020
(a)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Fuel
Natural gas stored underground . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Materials, supplies, and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
118 $
9
292
419 $
— $
90
83
173 $
118
99
375
592
Ameren
Missouri
Ameren
Illinois
Ameren
(a)
Consists of coal, oil, and propane.
151
Ameren
Missouri
$
115 $
5
266
386 $
$
Ameren
Illinois
Ameren
— $
52
83
135 $
115
57
349
521
Property, Plant, and Equipment
In January 2021, Ameren Missouri acquired a 300-MW wind generation project located in northwestern Missouri. As of June 30, 2021,
Ameren Missouri had placed the project in service as the Atchison Renewable Energy Center. The purchase price of the energy center was
approximately $500 million, including an immaterial amount of transaction costs. In December 2020, Ameren Missouri acquired a 400-MW
wind generation project located in northeastern Missouri for approximately $615 million, and placed the assets in service as the High Prairie
Renewable Energy Center. The purchase price included $564 million of cash, a deferred purchase price obligation withheld as credit support
in relation to certain potential claims, contingent consideration, and transaction costs. Both renewable energy centers support Ameren
Missouri’s compliance with the Missouri renewable energy standard.
Asset Retirement Obligations
The following table provides a reconciliation of the beginning and ending carrying amount of AROs for the years ended December 31,
2021 and 2020:
December 31, 2021
December 31, 2020
Ameren
Missouri
Ameren
Illinois
Ameren
Ameren
Missouri
Ameren
Illinois
Ameren
Beginning balance at January 1 . . . . . . . . . . . . . . . . . . . . . . . . . $
Liabilities incurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities settled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accretion(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ending balance at December 31 . . . . . . . . . . . . . . . . . . . . . . . . . $
(c)
751
18
(36)
31
(4) (e)
(g)
760
—
(1)
—
—
4
$
$
(a)
5
$
(b)
(c)
756
18
(37)
31
(4) (e)
$
$
(c)
687
36
(58)
29
57
(f)
(a)
$
(b)(g)
764
$
751
$
4
—
—
1
—
5
$
691
36
(58)
30
57
(a)
$
756
(c)
(f)
(b)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
Included in “Other deferred credits and liabilities” on the balance sheet.
Balance included $7 million and $60 million in “Other current liabilities” on the balance sheet as of December 31, 2021 and 2020, respectively.
Ameren Missouri recorded AROs related to the decommissioning of the Atchison Renewable and High Prairie Renewable energy centers in 2021 and 2020, respectively.
Accretion expense attributable to Ameren Missouri and Ameren Illinois was recorded as a decrease to regulatory liabilities and an increase to regulatory assets,
respectively.
Ameren Missouri changed its fair value estimate primarily due to a decrease in the cost estimate for closure of certain CCR storage facilities, partially offset by an increase
due to the planned accelerated retirement of the Rush Island Energy Center.
Ameren Missouri changed its fair value estimate primarily due to an update to the decommissioning of the Callaway Energy Center to reflect the cost study and funding
analysis filed with the MoPSC in November 2020 and an increase in the cost estimate for closure of certain CCR storage facilities.
The balance as of December 31, 2021, included an ARO related to the decommissioning of the Callaway Enter Center of $574 million.
Noncontrolling Interests
As of December 31, 2021 and 2020, Ameren’s noncontrolling interests included the preferred stock of Ameren Missouri and Ameren
Illinois.
Deferred Compensation
As of December 31, 2021, and 2020, the present value of benefits to be paid for deferred compensation obligations was $91 million and
$90 million, respectively, which was primarily reflected in “Other deferred credits and liabilities” on Ameren’s consolidated balance sheet.
Excise Taxes
Ameren Missouri and Ameren Illinois collect from their customers excise taxes, including municipal and state excise taxes and gross
receipts taxes, that are levied on the sale or distribution of natural gas and electricity. The following table presents the excise taxes recorded
on a gross basis in “Operating Revenues – Electric,” “Operating Revenues – Natural gas” and “Operating Expenses – Taxes other than
income taxes” on the statements of income for the years ended December 31, 2021, 2020, and 2019:
Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
150
125
275
$
$
139
115
254
$
$
147
117
264
2021
2020
2019
152
Allowance for Funds Used During Construction
The following table presents the average rate that was applied to eligible construction work in progress and the amounts of allowance for
funds used during construction capitalized in 2021, 2020, and 2019:
2021
2020
2019
Average rate:
Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 %
5 %
5 %
5 %
6 %
5 %
Ameren:
Allowance for equity funds used during construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Allowance for borrowed funds used during construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Ameren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Ameren Missouri:
Allowance for equity funds used during construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Allowance for borrowed funds used during construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Ameren Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Ameren Illinois:
Allowance for equity funds used during construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Allowance for borrowed funds used during construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Ameren Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
43
17
60
26
10
36
17
7
24
$
$
$
$
$
$
32
16
48
19
10
29
13
6
19
$
$
$
$
$
$
28
20
48
19
12
31
9
8
17
Earnings per Share
Earnings per basic and diluted share are computed by dividing “Net Income Attributable to Ameren Common Shareholders” by the
weighted-average number of basic and diluted common shares outstanding, respectively, during the applicable period. The weighted-average
shares outstanding for earnings per diluted share includes the incremental effects resulting from performance share units, restricted stock
units, and forward sale agreements relating to common stock when the impact would be dilutive, as calculated using the treasury stock
method. For information regarding performance share units and restricted stock units, see Note 11 – Stock-based Compensation. For
information regarding forward sale agreements, see Note 5 – Long-term Debt and Equity Financings.
The following table reconciles the weighted-average number of common shares outstanding to the diluted weighted-average number of
common shares outstanding for the years ended December 31, 2021, 2020, and 2019:
Weighted-average Common Shares Outstanding – Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assumed settlement of performance share units and restricted stock units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dilutive effect of forward sale agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighted-average Common Shares Outstanding – Diluted(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2021
2020
2019
256.3
1.3
—
257.6
247.0
1.2
0.5
248.7
245.6
1.4
0.1
247.1
(a)
There was an immaterial number of anti-dilutive securities excluded from the earnings per diluted share calculations for the year ended December 31, 2021. There were no
potentially dilutive securities excluded from the earnings per diluted share calculations for the years ended December 31, 2020 and 2019.
153
Supplemental Cash Flow Information
The following table provides noncash financing and investing activity excluded from the statements of cash flows for the years ended
December 31, 2021, 2020, and 2019:
Investing
Accrued capital expenditures, including wind generation
expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued nuclear fuel expenditures . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain – nuclear decommissioning trust
fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exchange of bond investments for the extinguishment of senior
unsecured notes(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financing
Issuance of common stock for stock-based compensation . . . . . . $
Exchange of bond investments for the extinguishment of senior
unsecured notes(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
December 31, 2021
December 31, 2020
December 31, 2019
Ameren
Ameren
Missouri
Ameren
Illinois
Ameren
Ameren
Missouri
Ameren
Illinois
Ameren
Ameren
Missouri
Ameren
Illinois
$
508 $
285 $
215
$
446 $
229 $
218
$
333 $
140 $
163
16
163
16
163
—
—
33 $
— $
—
—
—
—
—
—
—
—
116
—
116
—
—
$
38 $
— $
—
—
—
—
—
—
—
19
143
17
19
143
—
—
—
17
$
54 $
— $
—
(17)
—
(17)
(a)
In 2006, Ameren Illinois purchased all $17 million of the 1993 Series B-1 bonds due 2028 issued by the Illinois Finance Authority on behalf of Ameren Illinois pursuant to a
mandatory tender. Ameren Illinois’ 1993 Series B-1 senior unsecured notes due 2028 were not extinguished and remained as “Long-term debt, net” on Ameren’s and
Ameren Illinois’ balance sheets. In September 2019, Ameren Illinois exchanged its bond investments for the extinguishment of its senior unsecured notes.
NOTE 16 – SEGMENT INFORMATION
Ameren has four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren
Transmission. The Ameren Missouri segment includes all of the operations of Ameren Missouri. Ameren Illinois Electric Distribution consists
of the electric distribution business of Ameren Illinois. Ameren Illinois Natural Gas consists of the natural gas business of Ameren Illinois.
Ameren Transmission primarily consists of the aggregated electric transmission businesses of Ameren Illinois and ATXI. The category called
Other primarily includes Ameren (parent) activities and Ameren Services.
Ameren Missouri has one segment. Ameren Illinois has three segments: Ameren Illinois Electric Distribution, Ameren Illinois Natural
Gas, and Ameren Illinois Transmission. See Note 1 – Summary of Significant Accounting Policies for additional information regarding the
operations of Ameren Missouri, Ameren Illinois, and ATXI.
Segment operating revenues and a majority of operating expenses are directly recognized and incurred by Ameren Illinois to each
Ameren Illinois segment. Common operating expenses, miscellaneous income and expenses, interest charges, and income tax expense are
allocated by Ameren Illinois to each Ameren Illinois segment based on certain factors, which primarily relate to the nature of the cost.
Additionally, Ameren Illinois Transmission earns revenue from transmission service provided to Ameren Illinois Electric Distribution, other
retail electric suppliers, and wholesale customers. The transmission expense for Illinois customers who have elected to purchase their power
from Ameren Illinois is recovered through a cost recovery mechanism with no net effect on Ameren Illinois Electric Distribution earnings, as
costs are offset by corresponding revenues. Transmission revenues from these transactions are reflected in Ameren Transmission’s and
Ameren Illinois Transmission’s operating revenues. An intersegment elimination at Ameren and Ameren Illinois occurs to eliminate these
transmission revenues and expenses.
154
The following tables present information about the reported revenue and specified items reflected in net income attributable to common
shareholders and capital expenditures by segment at Ameren and Ameren Illinois for the years ended December 31, 2021, 2020, and 2019.
Ameren, Ameren Missouri, and Ameren Illinois management review segment capital expenditure information rather than any individual or
total asset amount.
Ameren
2021
Ameren
Missouri
Ameren
Illinois
Electric
Distribution
Ameren
Illinois
Natural
Gas
Ameren
Transmission
Other
Intersegment
Eliminations
Ameren
3,311
$
1,635
$
957
$
3,069
$
1,496
$
760
$
469
$
Capital expenditures . . . . . . . . . . . . . . . .
2,015
(b)
External revenues . . . . . . . . . . . . . . . . . $
Intersegment revenues . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . .
Interest charges . . . . . . . . . . . . . . . . . . .
Income taxes (benefit) . . . . . . . . . . . . . .
Net income (loss) attributable to Ameren
common shareholders . . . . . . . . . . . . . .
2020
External revenues . . . . . . . . . . . . . . . . . $
Intersegment revenues . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . .
Interest charges . . . . . . . . . . . . . . . . . . .
Income taxes (benefit) . . . . . . . . . . . . . .
Net income (loss) attributable to Ameren
common shareholders . . . . . . . . . . . . . .
42
632
26
137
3
518
40
604
26
190
34
436
4
309
1
74
53
165
579
—
90
—
42
39
108
278
$
(a)
491
71
111
—
83
82
230
616
2
288
2
72
42
143
543
—
81
—
41
36
99
301
(a)
54
98
1
78
78
216
716
Capital expenditures . . . . . . . . . . . . . . . .
1,666
(b)
2019
External revenues . . . . . . . . . . . . . . . . . $
Intersegment revenues . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . .
Interest charges . . . . . . . . . . . . . . . . . . .
Income taxes (benefit) . . . . . . . . . . . . . .
Net income (loss) attributable to Ameren
common shareholders . . . . . . . . . . . . . .
Capital expenditures . . . . . . . . . . . . . . . .
3,212
$
1,487
$
791
$
401
$
31
556
26
178
68
426
1,076
17
273
6
71
45
146
518
6
78
—
38
30
84
318
(a)
63
84
1
74
64
185
528
—
—
4
3
50
(20)
(31)
4
—
—
4
4
42
(35)
(23)
5
—
—
4
5
25
(25)
(13)
3
$
—
$
6,394
(117)
—
(3)
(3)
—
—
(13)
—
(96)
—
(4)
(4)
—
—
2
—
(98)
—
(5)
(5)
—
—
(32) (d)
—
1,146
27
383
157
990
3,479
(b)
$
5,794
—
1,075
29
419
155
871
3,233
(b)
$
5,891
(c)
19
995
33
381
182
828
2,411
$
$
(a)
(b)
(c)
(d)
Ameren Transmission interest charges include an allocation of financing costs from Ameren (parent).
Includes $525 million and $564 million at Ameren and Ameren Missouri for wind generation expenditures for the year ended December 31, 2021 and 2020, respectively.
Intersegment revenues at Ameren include $14 million and $5 million of revenue from Ameren Illinois Electric Distribution and Ameren Illinois Natural Gas, respectively, for
the year ended December 31, 2019, for a software licensing agreement with Ameren Missouri. Under authoritative accounting guidance for rate-regulated entities, the
revenue recognized by Ameren Illinois was not eliminated upon consolidation. See Note 13 – Related-party Transactions for additional information.
Intersegment capital expenditure eliminations include $24 million of eliminations for the year ended December 31, 2019, for a software licensing agreement between
Ameren Illinois and Ameren Missouri. See Note 13 – Related-party Transactions for additional information.
155
Ameren Illinois
Ameren
Illinois Electric
Distribution
Ameren
Illinois
Natural Gas
Ameren
Illinois
Transmission
Intersegment
Eliminations
Ameren
Illinois
2021
External revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Intersegment revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income available to common shareholder . . . . . . . . . . . . . . . . .
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2020
External revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Intersegment revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income available to common shareholder . . . . . . . . . . . . . . . . .
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2019
External revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Intersegment revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income available to common shareholder . . . . . . . . . . . . . . . . .
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,639
$
957
$
299
$
—
309
1
74
53
165
579
—
90
—
42
39
108
278
66
73
—
48
51
152
575
1,498
$
760
$
277
$
—
288
2
72
42
143
543
—
81
—
41
36
99
301
52
65
1
42
46
137
603
1,504
$
797
$
226
$
—
273
6
71
45
146
518
—
78
—
38
30
84
318
62
55
—
38
35
113
372
—
(66)
—
—
—
—
—
—
—
(52)
—
—
—
—
—
—
—
(62)
—
—
—
—
—
—
$
2,895
—
472
1
164
143
425
1,432
$
2,535
—
434
3
155
124
379
1,447
$
2,527
—
406
6
147
110
343
1,208
156
The following tables present disaggregated revenues by segment at Ameren and Ameren Illinois for the years ended December 31,
2021, 2020, and 2019. Economic factors affect the nature, timing, amount, and uncertainty of revenues and cash flows in a similar manner
across customer classes. Revenues from alternative revenue programs have a similar distribution among customer classes as revenues from
contracts with customers. Other revenues not associated with contracts with customers are presented in the Other customer classification,
along with electric transmission and off-system revenues.
Ameren
2021
Residential . . . . . . . . . . . . . . . . . . . . $
Commercial . . . . . . . . . . . . . . . . . . .
Industrial . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . .
Total electric revenues . . . . . . . . . . . $
Residential . . . . . . . . . . . . . . . . . . . . $
Commercial . . . . . . . . . . . . . . . . . . .
Industrial . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . .
Total gas revenues . . . . . . . . . . . . . . $
Total revenues(a) . . . . . . . . . . . . . . . $
2020
Residential . . . . . . . . . . . . . . . . . . . . $
Commercial . . . . . . . . . . . . . . . . . . .
Industrial . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . .
Total electric revenues . . . . . . . . . . . $
Residential . . . . . . . . . . . . . . . . . . . . $
Commercial . . . . . . . . . . . . . . . . . . .
Industrial . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . .
Total gas revenues . . . . . . . . . . . . . . $
Total revenues(a) . . . . . . . . . . . . . . . $
2019
Residential . . . . . . . . . . . . . . . . . . . . $
Commercial . . . . . . . . . . . . . . . . . . .
Industrial . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . .
Total electric revenues . . . . . . . . . . . $
Residential . . . . . . . . . . . . . . . . . . . . $
Commercial . . . . . . . . . . . . . . . . . . .
Industrial . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . .
Total gas revenues . . . . . . . . . . . . . . $
Total revenues(a) . . . . . . . . . . . . . . . $
Ameren
Missouri
Ameren Illinois
Electric
Distribution
Ameren Illinois
Natural Gas
Ameren
Transmission
Intersegment
Eliminations
Ameren
1,445
1,126
280
361
3,212
79
34
4
24
141
3,353
1,373
1,025
261
325
2,984
76
29
4
16
125
3,109
1,403
1,157
278
271
3,109
81
34
4
15
134
3,243
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
933
545
135
26
1,639
—
—
—
—
—
1,639
867
486
124
21
1,498
—
—
—
—
—
1,498
848
497
127
(b)
32
1,504
—
—
—
—
—
1,504
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
—
—
—
—
—
657
172
35
93
957
957
—
—
—
—
—
541
136
14
69
760
760
—
—
—
—
—
570
154
13
60
797
797
(b)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
—
—
—
562
562
—
—
—
—
—
562
—
—
—
523
523
—
—
—
—
—
523
—
—
—
464
464
—
—
—
—
—
464
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
—
—
—
(116)
(116)
—
—
—
(1)
(1)
(117)
—
—
—
(94)
(94)
—
—
—
(2)
(2)
(96)
—
—
—
(96)
(96)
—
—
—
(2)
(2)
(98)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2,378
1,671
415
833
5,297
736
206
39
116
1,097
6,394
2,240
1,511
385
775
4,911
617
165
18
83
883
5,794
2,251
1,654
405
671
4,981
651
188
17
73
929
5,910
(a)
The following table presents increases/(decreases) in revenues from alternative revenue programs and other revenues not from contracts with customers for the years
ended December 31, 2021, 2020, and 2019:
157
Ameren
Missouri
Ameren
Illinois
Electric
Distribution
Ameren
Illinois
Natural
Gas
Ameren
Transmission
Ameren
2021
Revenues from alternative revenue programs . . . . . . . . . . . . . . . . . . $
Other revenues not from contracts with customers . . . . . . . . . . . . . . .
2020
Revenues from alternative revenue programs . . . . . . . . . . . . . . . . . . $
Other revenues not from contracts with customers . . . . . . . . . . . . . . .
2019
Revenues from alternative revenue programs . . . . . . . . . . . . . . . . . . $
Other revenues not from contracts with customers . . . . . . . . . . . . . . .
$
$
$
(16)
56
(a)
(14)
25
35
19
$
$
$
77
10
(20)
8
(74)
7
$
$
$
5
2
20
2
—
2
$
$
$
11
—
50
1
(31)
—
(a)
77
68
36
36
(70)
28
(a)
Includes insurance recoveries related to lost sales associated with the Callaway Energy Center maintenance outage. See Note 9 – Callaway Energy Center for
additional information.
(b)
Includes $14 million and $5 million for Ameren Illinois Electric Distribution and Ameren Illinois Natural Gas, respectively, for the year ended December 31, 2019, for a
software licensing agreement with Ameren Missouri. See Note 13 – Related-party Transactions for additional information.
Ameren Illinois
Ameren
Illinois
Electric
Distribution
Ameren
Illinois
Natural Gas
Ameren
Illinois
Transmission
Intersegment
Eliminations
Ameren
Illinois
2021
Residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total revenues(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2020
Residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total revenues(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2019
Residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total revenues(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
933
545
135
26
1,639
867
486
124
21
1,498
848
497
127
32
1,504
(b)
$
$
$
$
$
$
657
172
35
93
957
541
136
14
69
760
570
154
13
60
797
(b)
$
$
$
$
$
$
—
—
—
365
365
—
—
—
329
329
—
—
—
288
288
$
$
$
$
$
$
—
—
—
(66)
(66)
—
—
—
(52)
(52)
—
—
—
(62)
(62)
$
$
$
$
$
$
1,590
717
170
418
2,895
1,408
622
138
367
2,535
1,418
651
140
318
2,527
(a)
The following table presents increases/(decreases) in revenues from alternative revenue programs and other revenues not from contracts with customers for the Ameren
Illinois segments for the years ended December 31, 2021, 2020, and 2019:
Ameren
Illinois
Electric
Distribution
Ameren
Illinois
Natural Gas
Ameren
Illinois
Transmission
Ameren
Illinois
2021
Revenues from alternative revenue programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Other revenues not from contracts with customers . . . . . . . . . . . . . . . . . . . . . . . .
2020
Revenues from alternative revenue programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Other revenues not from contracts with customers . . . . . . . . . . . . . . . . . . . . . . . .
2019
Revenues from alternative revenue programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Other revenues not from contracts with customers . . . . . . . . . . . . . . . . . . . . . . . .
$
$
$
77
10
(20)
8
(74)
7
$
$
$
5
2
20
2
—
2
$
$
$
9
—
42
—
(33)
—
91
12
42
10
(107)
9
(b)
Includes $14 million and $5 million for Ameren Illinois Electric Distribution and Ameren Illinois Natural Gas, respectively, for the year ended December 31, 2019, for a
software licensing agreement with Ameren Missouri. See Note 13 – Related-party Transactions for additional information.
158
ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A.
CONTROLS AND PROCEDURES
(a) Evaluation of Disclosure Controls and Procedures
As of December 31, 2021, evaluations were performed under the supervision and with the participation of management, including the
principal executive officer and the principal financial officer of each of the Ameren Companies, of the effectiveness of the design and
operation of such registrant’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act). Based
on those evaluations, as of December 31, 2021, the principal executive officer and the principal financial officer of each of the Ameren
Companies concluded that such disclosure controls and procedures are effective to provide assurance that information required to be
disclosed in such registrant’s reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the
time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to its management,
including its principal executive and principal financial officers, to allow timely decisions regarding required disclosure.
(b) Management’s Report on Internal Control over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in
Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision of and with the participation of management, including the principal
executive officer and the principal financial officer, an evaluation was conducted of the effectiveness of each of the Ameren Companies’
internal control over financial reporting based on the framework in Internal Control – Integrated Framework (2013) issued by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO). After making that evaluation, management concluded that each of the
Ameren Companies’ internal control over financial reporting was effective as of December 31, 2021. The effectiveness of Ameren’s internal
control over financial reporting as of December 31, 2021, has been audited by PricewaterhouseCoopers LLP, an independent registered
public accounting firm, as stated in its report herein under Part II, Item 8. This annual report does not include an attestation report of Ameren
Missouri’s or Ameren Illinois’ (the Subsidiary Registrants) independent registered public accounting firm regarding internal control over
financial reporting. Management’s report for each of the Subsidiary Registrants is not subject to attestation by an independent registered
public accounting firm.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of
any evaluation of effectiveness into future periods are subject to the risk that internal controls might become inadequate because of changes
in conditions, and to the risk that the degree of compliance with the policies or procedures might deteriorate.
(c) Change in Internal Control
There has been no change in the Ameren Companies’ internal control over financial reporting during their most recent fiscal quarter that
has materially affected, or is reasonably likely to materially affect, their internal control over financial reporting.
ITEM 9B.
OTHER INFORMATION
The Ameren Companies have no information reportable under this item that was required to be disclosed in a report on SEC Form 8-K
during the fourth quarter of 2021 that has not previously been reported.
ITEM 9C.
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not Applicable.
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
PART III
Information required by Items 401, 405, 406 and 407(c)(3),(d)(4) and (d)(5) of SEC Regulation S-K for Ameren will be included in its
definitive proxy statement for its 2022 annual meeting of shareholders filed pursuant to SEC Regulation 14A; it is incorporated herein by
reference. Information required by these SEC Regulation S-K items for Ameren Missouri and Ameren Illinois will be included in each
company’s definitive information statement for its 2022 annual meeting of shareholders filed pursuant to SEC Regulation 14C; it is
incorporated herein by reference. Specifically, reference is made to the following sections of Ameren’s definitive proxy statement and to each
of Ameren Missouri’s and Ameren Illinois’ definitive information statements: “Information Concerning Nominees to the Board of Directors,”
“Section 16(a) Reports,” “Corporate Governance” and “Board Structure.”
159
Information concerning executive officers of the Ameren Companies required by Item 401 of SEC Regulation S-K is reported under a
separate caption entitled “Information about our Executive Officers” in Part I of this report.
Ameren Missouri and Ameren Illinois do not have separately designated standing audit committees, but instead use Ameren’s Audit and
Risk Committee to perform such committee functions for their boards of directors. These companies do not have securities listed on the
NYSE and therefore are not subject to the NYSE listing standards. J. Edward Coleman serves as chairman of Ameren’s Audit and Risk
Committee and Catherine S. Brune, Ward H. Dickson, Noelle K. Eder, and Leo S. Mackay, Jr. serve as members. The board of directors of
Ameren has determined that J. Edward Coleman and Ward H. Dickson each qualify as an audit committee financial expert and that each is
“independent” as that term is used in SEC Regulation 14A.
Also, on the same basis as reported above, the boards of directors of Ameren Missouri and Ameren Illinois use the Nominating and
Corporate Governance Committee of Ameren’s board of directors to perform such committee functions. This Committee is responsible for the
nomination of directors and for corporate governance practices. Ameren’s Nominating and Corporate Governance Committee will consider
director nominations from shareholders in accordance with its Policy Regarding Nominations of Directors, which can be found on Ameren’s
website: www.amereninvestors.com.
To encourage ethical conduct in its financial management and reporting, Ameren has adopted a code of ethics that applies to the
directors, officers, and employees of the Ameren Companies. Ameren has also adopted a supplemental code of ethics that applies to the
principal executive officer, the president, the principal financial officer, the principal accounting officer, the controller, and the treasurer of the
Ameren Companies. The Ameren Companies make available free of charge through Ameren’s website (www.amereninvestors.com) the code
of ethics and the supplemental code of ethics. Any amendment to the code of ethics or the supplemental code of ethics and any waiver from
a provision of the code of ethics or the supplemental code of ethics as it relates to the principal executive officer, the president, the principal
financial officer, the principal accounting officer, the controller, or the treasurer of each of the Ameren Companies will be posted on Ameren’s
website within four business days following the date of the amendment or waiver.
ITEM 11.
EXECUTIVE COMPENSATION
Information required by Items 402 and 407(e)(4) and (e)(5) of SEC Regulation S-K for Ameren will be included in its definitive proxy
statement for its 2022 annual meeting of shareholders filed pursuant to SEC Regulation 14A; it is incorporated herein by reference.
Information required by these SEC Regulation S-K items for Ameren Missouri and Ameren Illinois will be included in each company’s
definitive information statement for its 2022 annual meeting of shareholders filed pursuant to SEC Regulation 14C; it is incorporated herein by
reference. Specifically, reference is made to the following sections of Ameren’s definitive proxy statement and to each of Ameren Missouri’s
and Ameren Illinois’ definitive information statements: “Executive Compensation Matters” and “Human Resources Committee Interlocks and
Insider Participation.”
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER
MATTERS
Equity Compensation Plan Information
The following table presents information as of December 31, 2021, with respect to the shares of Ameren’s common stock that may be
issued under its existing equity compensation plans:
Plan
Category
Equity compensation plans approved by security holders(b) . . . . . . . . . . . .
Equity compensation plans not approved by security holders . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Column A
Number of Securities To Be
Issued Upon Exercise of
Outstanding Options,
Warrants and Rights(a)
Column B
Weighted-Average
Exercise Price of
Outstanding Options,
Warrants and Rights
Column C
Number of Securities Remaining
Available for Future Issuance
Under Equity Compensation
Plans (excluding
securities reflected in Column A)
1,442,122
—
1,442,122
(c)
—
(c)
1,753,758
—
1,753,758
(a) Of the securities to be issued, 913,649 of the securities represent the target number of outstanding performance share units (PSUs) and 433,248 of the securities
represent the number of outstanding restricted stock units (RSUs), both including accrued and reinvested dividends. The actual number of shares issued in respect of the
PSUs will vary from 0% to 200% of the target level, depending upon the achievement of TSR objectives or performance goals established for such awards. For additional
information about the PSUs and RSUs, including payout calculations, see “Compensation Discussion and Analysis – Long-Term Incentive Compensation” in Ameren’s
definitive proxy statement for its 2022 annual meeting of shareholders, which will be filed pursuant to SEC Regulation 14A. The remaining 95,225 of the securities
represent shares that may be issued to satisfy obligations under the Ameren Corporation Deferred Compensation Plan for Members of the Board of Directors.
Consists of the 2014 Omnibus Incentive Compensation Plan.
No cash consideration is received when shares are distributed for earned PSUs, RSUs, and director awards. Accordingly, there is no weighted-average exercise price.
(b)
(c)
Ameren Missouri and Ameren Illinois do not have separate equity compensation plans.
160
Security Ownership of Certain Beneficial Owners and Management
The information required by Item 403 of SEC Regulation S-K for Ameren will be included in its definitive proxy statement for its 2022
annual meeting of shareholders filed pursuant to SEC Regulation 14A; it is incorporated herein by reference. Information required by this
SEC Regulation S-K item for Ameren Missouri and Ameren Illinois will be included in each company’s definitive information statement for its
2022 annual meeting of shareholders filed pursuant to SEC Regulation 14C; it is incorporated herein by reference. Specifically, reference is
made to the following section of Ameren’s definitive proxy statement and each of Ameren Missouri’s and Ameren Illinois’ definitive
information statement: “Security Ownership.”
ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
Information required by Items 404 and 407(a) of SEC Regulation S-K for Ameren will be included in its definitive proxy statement for its
2022 annual meeting of shareholders filed pursuant to SEC Regulation 14A; it is incorporated herein by reference. Information required by
these SEC Regulation S-K items for Ameren Missouri and Ameren Illinois will be included in each company’s definitive information statement
for its 2022 annual meeting of shareholders filed pursuant to SEC Regulation 14C; it is incorporated herein by reference. Specifically,
reference is made to the following sections of Ameren’s definitive proxy statement and to each of Ameren Missouri’s and Ameren Illinois’
definitive information statements: “Related Person Transactions Policy” and “Director Independence.”
ITEM 14.
PRINCIPAL ACCOUNTANT FEES AND SERVICES
Information required by Item 9(e) of SEC Schedule 14A for the Ameren Companies will be included in the definitive proxy statement of
Ameren and the definitive information statements of Ameren Missouri and Ameren Illinois for their 2022 annual meetings of shareholders filed
pursuant to SEC Regulations 14A and 14C, respectively; it is incorporated herein by reference. Specifically, reference is made to the
following section of Ameren’s definitive proxy statement and each of Ameren Missouri’s and Ameren Illinois’ definitive information statement:
“Selection of Independent Registered Public Accounting Firm.”
161
ITEM 15.
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
PART IV
(a)(1) Financial Statements
Ameren
Report of Independent Registered Public Accounting Firm –
Page No.
(PricewaterhouseCoopers LLP’s Public Company Accounting Oversight Board ID 238) . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statement of Income and Comprehensive Income – Years Ended December 31, 2021, 2020, and 2019 . . . . . .
Consolidated Balance Sheet – December 31, 2021 and 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statement of Cash Flows – Years Ended December 31, 2021, 2020, and 2019 . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statement of Shareholders’ Equity – Years Ended December 31, 2021, 2020, and 2019 . . . . . . . . . . . . . . . . .
Ameren Missouri
Report of Independent Registered Public Accounting Firm –
(PricewaterhouseCoopers LLP’s Public Company Accounting Oversight Board ID 238) . . . . . . . . . . . . . . . . . . . . . . . . .
Statement of Income – Years Ended December 31, 2021, 2020, and 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance Sheet – December 31, 2021 and 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Statement of Cash Flows – Years Ended December 31, 2021, 2020, and 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Statement of Shareholders’ Equity – Years Ended December 31, 2021, 2020, and 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois
Report of Independent Registered Public Accounting Firm –
(PricewaterhouseCoopers LLP’s Public Company Accounting Oversight Board ID 238) . . . . . . . . . . . . . . . . . . . . . . . . .
Statement of Income – Years Ended December 31, 2021, 2020, and 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance Sheet – December 31, 2021 and 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Statement of Cash Flows – Years Ended December 31, 2021, 2020, and 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Statement of Shareholders’ Equity – Years Ended December 31, 2021, 2020, and 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a)(2) Financial Statement Schedules
Schedule I
Condensed Financial Information of Parent – Ameren:
Condensed Statement of Income and Comprehensive Income – Years Ended December 31, 2021, 2020, and 2019 . . . .
Condensed Balance Sheet – December 31, 2021 and 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Condensed Statement of Cash Flows – Years Ended December 31, 2021, 2020, and 2019 . . . . . . . . . . . . . . . . . . . . . .
Schedule II
Ameren
Valuation and Qualifying Accounts for the years ended December 31, 2021, 2020, and 2019 . . . . . . . . . . . . . . . . . . . . .
Ameren Missouri
Valuation and Qualifying Accounts for the years ended December 31, 2021, 2020, and 2019 . . . . . . . . . . . . . . . . . . . . .
Ameren Illinois
Valuation and Qualifying Accounts for the years ended December 31, 2021, 2020, and 2019 . . . . . . . . . . . . . . . . . . . . .
Schedule I and II should be read in conjunction with the aforementioned financial statements. Certain schedules have been omitted
because they are not applicable or because the required data is shown in the aforementioned financial statements.
(a)(3)
(b)
Exhibits – reference is made to the Exhibit Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exhibit Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80
86
87
88
89
82
90
91
92
93
84
94
95
96
97
163
164
165
167
167
167
168
168
162
SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT
AMEREN CORPORATION
CONDENSED STATEMENT OF INCOME AND COMPREHENSIVE INCOME
For the Years Ended December 31, 2021, 2020, and 2019
(In millions)
2021
2020
2019
Operating revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
—
13
(13)
Equity in earnings of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,039
Interest income from affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total other expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income tax benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net Income Attributable to Ameren Common Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Net Income Attributable to Ameren Common Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Other Comprehensive Income, Net of Taxes:
3
—
(64)
25
990
990
$
$
Pension and other postretirement benefit plan activity, net of income taxes of $4, $5, and $1, respectively . . . . . . . . . . . .
14
$
$
$
—
12
(12)
908
4
(8)
(57)
36
871
871
16
Comprehensive Income Attributable to Ameren Common Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
1,004
$
887
$
—
15
(15)
850
5
(2)
(39)
29
828
828
5
833
163
SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT
AMEREN CORPORATION
CONDENSED BALANCE SHEET
(In millions, except per share amounts)
Assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Advances to money pool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts receivable – affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous accounts and notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note receivable – ATXI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated deferred income taxes, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Liabilities and Shareholders’ Equity:
Short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Taxes accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts payable – affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension and other postretirement benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other deferred credits and liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commitments and Contingencies (Note 5)
Shareholders’ Equity:
Common stock, $.01 par value, 400.0 shares authorized – shares outstanding of 257.7 and 253.3, respectively . . . .
Other paid-in capital, principally premium on common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities and shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
December 31, 2021
December 31, 2020
$
$
$
—
108
30
11
4
153
12,281
35
65
184
12,718
277
7
53
38
375
2,533
24
86
3,018
3
6,502
3,182
13
9,700
12,718
$
—
16
12
15
4
47
10,872
75
42
167
11,203
490
—
41
34
565
1,588
27
85
2,265
3
6,179
2,757
(1)
8,938
11,203
164
SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT
AMEREN CORPORATION
CONDENSED STATEMENT OF CASH FLOWS
For the Years Ended December 31, 2021, 2020, and 2019
(In millions)
Net cash flows provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Cash flows from investing activities:
2021
2020
2019
79
$
147
$
491
Money pool advances, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notes receivable – ATXI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash flows used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash flows from financing activities:
Dividends on common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short-term debt, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Money pool borrowings, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Maturities of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Issuances of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Issuances of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employee payroll taxes related to stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash flows provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in cash, cash equivalents, and restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Cash, cash equivalents, and restricted cash at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash, cash equivalents, and restricted cash at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Supplemental information:
(92)
40
(489)
7
(534)
(565)
(213)
—
—
949
308
(17)
(7)
455
86
—
(956)
8
(862)
(494)
337
(24)
(350)
798
476
(20)
(7)
716
—
$
4
4
$
1
3
4
$
$
Cash dividends received from consolidated subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
123
$
105
$
Noncash financing activity – Issuance of common stock for stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33
38
(26)
—
(142)
5
(163)
(472)
(317)
(22)
—
450
68
(29)
(4)
(326)
2
1
3
445
54
AMEREN CORPORATION (parent company only)
NOTES TO CONDENSED FINANCIAL STATEMENTS December 31, 2021
NOTE 1 – BASIS OF PRESENTATION
Ameren Corporation (parent company only) is a public utility holding company that conducts substantially all of its business operations
through its subsidiaries. Ameren Corporation (parent company only) has accounted for its subsidiaries using the equity method. These
financial statements are presented on a condensed basis.
See Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of this report for additional information.
NOTE 2 – CASH AND CASH EQUIVALENTS
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet and the
statement of cash flows as of December 31, 2021 and 2020:
(In millions)
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Restricted cash included in “Other current assets” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total cash, cash equivalents, and restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2021
2020
—
$
4
4
$
—
4
4
See Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of this report for additional information.
NOTE 3 – SHORT-TERM DEBT AND LIQUIDITY
Ameren, Ameren Services, and other non-state-regulated Ameren subsidiaries have the ability, subject to Ameren parent company and
applicable regulatory short-term borrowing authorizations, to access funding from the Credit Agreements and the commercial paper programs
through a non-state-regulated subsidiary money pool agreement. All participants may borrow from or lend to the non-state-regulated money
pool. The total amount available to pool participants from the non-state-regulated subsidiary money pool at any given time is reduced by the
165
amount of borrowings made by participants, but is increased to the extent that the pool participants advance surplus funds to the non-state-
regulated subsidiary money pool or remit funds from other external sources. The non-state-regulated subsidiary money pool was established
to coordinate and to provide short-term cash and working capital for the participants. Participants receiving a loan under the non-state-
regulated subsidiary money pool agreement must repay the principal amount of such loan, together with accrued interest. The rate of interest
depends on the composition of internal and external funds in the non-state-regulated subsidiary money pool. Interest revenues and interest
charges related to non-state-regulated money pool advances and borrowings were immaterial in 2019, 2020, and 2021.
See Note 4 – Short-term Debt and Liquidity under Part II, Item 8, of this report for a description and details of short-term debt and
liquidity needs of Ameren Corporation (parent company only).
NOTE 4 – LONG-TERM OBLIGATIONS
See Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of this report for additional information on Ameren
Corporation’s (parent company only) long-term debt, indenture provisions, forward sale agreements related to common stock, and ATM
program.
NOTE 5 – COMMITMENTS AND CONTINGENCIES
See Note 14 – Commitments and Contingencies under Part II, Item 8, of this report for a description of all material contingencies of
Ameren Corporation (parent company only).
NOTE 6 – TOTAL OTHER EXPENSE, NET
The following table presents the components of “Total Other Expense, Net” in the Condensed Statement of Income and Comprehensive
Income for the years ended December 31, 2021, 2020, and 2019:
(In millions)
Total Other Expense, Net
2021
2020
2019
Non-service cost components of net periodic benefit income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Donations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Other Expense, Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
1
—
(1)
—
$
$
1
(8)
(1)
(8)
$
$
2
(3)
(1)
(2)
166
SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS
FOR THE YEARS ENDED DECEMBER 31, 2021, 2020, AND 2019
(In millions)
Ameren:
Column A
Description
Column B
Balance at
Beginning
of Period
Column C
Column D
Column E
(1)
Charged to Costs
and Expenses
(2)
Charged to Other
Accounts(a)
Deductions(b)
Balance at End
of Period
Deducted from assets – allowance for doubtful accounts:
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
50
17
18
Ameren Missouri:
Deducted from assets – allowance for doubtful accounts:
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
16
$
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
7
Ameren Illinois:
Deducted from assets – allowance for doubtful accounts:
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
34
10
11
9
42
26
5
15
9
4
27
17
$
—
$
6
4
—
—
—
$
$
$
$
30
15
31
8
6
9
$
—
$
22
$
6
4
9
22
29
50
17
13
16
7
16
34
10
(a)
(b)
Amounts associated with the allowance for doubtful accounts relate to the uncollectible account reserve associated with receivables purchased by Ameren Illinois from
alternative retail electric suppliers, as required by the Illinois Public Utilities Act.
Uncollectible accounts charged off, less recoveries.
ITEM 16.
FORM 10-K SUMMARY
The Ameren Companies elected not to provide a summary of the Form 10-K.
167
EXHIBIT INDEX
The documents listed below are being filed or have previously been filed on behalf of the Ameren Companies and are incorporated
herein by reference from the documents indicated and made a part hereof. Exhibits not identified as previously filed are filed herewith:
Exhibit
Designation
Registrant(s)
Nature of Exhibit
Previously Filed as Exhibit to:
Articles of Incorporation/ By-Laws
3.1(i)
3.2(i)
3.3(i)
3.4(i)
3.5(i)
3.6(i)
3.7(ii)
3.8(ii)
3.9(ii)
Ameren
Ameren
Ameren
Ameren
Restated Articles of Incorporation of Ameren
Annex F to Part I of the Registration Statement on
Form S-4, File No. 33-64165
Certificate of Amendment to Ameren’s Restated Articles of
Incorporation filed December 14, 1998
1998 Form 10-K, Exhibit 3(i),
File No. 1-14756
Certificate of Amendment to Ameren’s Restated Articles of
Incorporation filed April 21, 2011
April 21, 2011 Form 8-K, Exhibit 3(i),
File No. 1-14756
Certificate of Amendment to Ameren’s Restated Articles of
Incorporation filed December 18, 2012
December 18, 2012 Form 8-K, Exhibit 3.1(i),
File No. 1-14756
Ameren Missouri
Restated Articles of Incorporation of Ameren Missouri
Ameren Illinois
Restated Articles of Incorporation of Ameren Illinois
Ameren
By-Laws of Ameren, as amended October 8, 2021
1993 Form 10-K, Exhibit 3(i),
File No. 1-2967
2010 Form 10-K, Exhibit 3.4(i),
File No. 1-3672
October 12, 2021 Form 8-K, Exhibit 3.1,
File No. 1-14756
Ameren Missouri
Bylaws of Ameren Missouri, as amended February 19,
2021
2020 Form 10-K, Exhibit 3.8(ii), File No. 1-2967
Ameren Illinois
Bylaws of Ameren Illinois, as amended February 19, 2021
2020 Form 10-K, Exhibit 3.9(ii), File No. 1-3672
Instruments Defining Rights of Security Holders, Including Indentures
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
Ameren
Ameren
Ameren
Ameren
Ameren
Ameren
Ameren
Ameren
Ameren
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Indenture, dated as of December 1, 2001 from Ameren to
The Bank of New York Mellon Trust Company, N.A., as
successor trustee, relating to senior debt securities
(Ameren Indenture)
Exhibit 4.5, File No. 333-81774
First Supplemental Indenture to Ameren Senior Indenture
dated as of May 19, 2008
June 30, 2008 Form 10-Q, Exhibit 4.1,
File No. 1-14756
Ameren Indenture Company Order, dated November 24,
2015, establishing the 3.65% Senior Notes due 2026
(including the global note)
November 24, 2015 Form 8-K, Exhibits 4.3 and
4.5, File No. 1-14756
Ameren Indenture Company Order, dated September 16,
2019, establishing the 2.50% Senior Notes due
2024 (including the global note)
September 16, 2019 Form 8-K, Exhibits 4.3 and
4.4, File No. 1-14756
Ameren Indenture Company Order, dated April 3, 2020,
establishing the 3.50% Senior Notes due 2031 (including
the global notes)
April 3, 2020 Form 8-K, Exhibits 4.3 and 4.4, File
No. 1-14756
Ameren Indenture Company Order, dated March 5, 2021,
establishing the 1.75% Senior Notes due 2028 (including
the global note)
March 5, 2021 Form 8-K, Exhibits 4.3 and 4.4, File
No. 1-14756
Ameren Indenture Company Order, dated November 18,
2021, establishing the 1.95% Senior Notes due 2027
(including the global note)
November 18, 2021 Form 8-K, Exhibits 4.3 and
4.4, File No. 1-14756
Note Purchase Agreement, dated June 22, 2017, between
Ameren Transmission Company of Illinois and the several
purchasers named therein.
Note Purchase Agreement, dated as of November 16,
2021, between Ameren Transmission Company of Illinois
and the several purchasers named therein.
Indenture of Mortgage and Deed of Trust, dated June 15,
1937 (Ameren Missouri Mortgage), from Ameren Missouri
to The Bank of New York Mellon, as successor trustee, as
amended May 1, 1941, and Second Supplemental
Indenture dated May 1, 1941
June 26, 2017 Form 8-K, Exhibit 4.1, File No.
1-14756
Exhibit B-1, File No. 2-4940
Supplemental Indenture to the Ameren Missouri Mortgage
dated as of July 1, 1956
Exhibit 4.22, File No. 333-222108
Supplemental Indenture to the Ameren Missouri Mortgage
dated as of April 1, 1971
Exhibit 4.23, File No. 333-222108
Supplemental Indenture to the Ameren Missouri Mortgage
dated as of February 1, 1974
Exhibit 4.24, File No. 333-222108
168
4.14
4.15
4.16
4.17
4.18
4.19
4.20
4.21
4.22
4.23
4.24
4.25
4.26
4.27
4.28
4.29
4.30
4.31
4.32
4.33
4.34
4.35
4.36
4.37
4.38
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Supplemental Indenture to the Ameren Missouri Mortgage
dated as of July 7, 1980
Exhibit 4.25, File No. 333-222108
Supplemental Indenture to the Ameren Missouri Mortgage
dated as of October 1, 1993
1993 Form 10-K, Exhibit 4.8,
File No. 1-2967
Supplemental Indenture to the Ameren Missouri Mortgage
dated as of February 1, 2000
2000 Form 10-K, Exhibit 4.1,
File No. 1-2967
Supplemental Indenture to the Ameren Missouri Mortgage
dated August 15, 2002
August 23, 2002 Form 8-K, Exhibit 4.3,
File No. 1-2967
Supplemental Indenture to the Ameren Missouri Mortgage
dated March 5, 2003 relative to Series BB
March 11, 2003 Form 8-K, Exhibit 4.4,
File No. 1-2967
Supplemental Indenture to the Ameren Missouri Mortgage
dated February 1, 2004 relative to Series 2004A (1998A)
March 31, 2004 Form 10-Q, Exhibit 4.1,
File No. 1-2967
Supplemental Indenture to the Ameren Missouri Mortgage
dated February 1, 2004 relative to Series 2004B (1998B)
March 31, 2004 Form 10-Q, Exhibit 4.2,
File No. 1-2967
Supplemental Indenture to the Ameren Missouri Mortgage
dated February 1, 2004 relative to Series 2004C (1998C)
March 31, 2004 Form 10-Q, Exhibit 4.3,
File No. 1-2967
Supplemental Indenture to the Ameren Missouri Mortgage
dated February 1, 2004 relative to Series 2004H (1992)
March 31, 2004 Form 10-Q, Exhibit 4.8,
File No. 1-2967
Supplemental Indenture to the Ameren Missouri Mortgage
dated September 1, 2004 relative to Series GG
September 23, 2004 Form 8-K, Exhibit 4.4,
File No. 1-2967
Supplemental Indenture to the Ameren Missouri Mortgage
dated January 1, 2005 relative to Series HH
January 27, 2005 Form 8-K, Exhibit 4.4,
File No. 1-2967
Supplemental Indenture to the Ameren Missouri Mortgage
dated July 1, 2005 relative to Series II
July 21, 2005 Form 8-K, Exhibit 4.4,
File No. 1-2967
Supplemental Indenture to the Ameren Missouri Mortgage
dated June 1, 2008 relative to Series MM
June 19, 2008 Form 8-K, Exhibit 4.5,
File No. 1-2967
Supplemental Indenture to the Ameren Missouri Mortgage
dated March 1, 2009 relative to Series NN
March 23, 2009 Form 8-K, Exhibit 4.5,
File No. 1-2967
Supplemental Indenture to the Ameren Missouri Mortgage
dated May 15, 2012
Exhibit 4.45, File No. 333-182258
Supplemental Indenture to the Ameren Missouri Mortgage
dated September 1, 2012 relative to Series OO
September 11, 2012 Form 8-K, Exhibit 4.4,
File No. 1-2967
Supplemental Indenture to the Ameren Missouri Mortgage
dated April 1, 2014 relative to Series PP
April 4, 2014 Form 8-K, Exhibit 4.5,
File No. 1-2967
Supplemental Indenture to the Ameren Missouri Mortgage
dated March 15, 2015 relative to Series QQ
April 6, 2015 Form 8-K, Exhibit 4.5, File No. 1-2967
Supplemental Indenture to the Ameren Missouri Mortgage
dated June 1, 2017 relative to Series RR
June 15, 2017 Form 8-K, Exhibit 4.5, File No.
1-2967
Supplemental Indenture to the Ameren Missouri Mortgage
dated April 1, 2018 for 4.000% First Mortgage Bonds due
2048
Supplemental Indenture to the Ameren Missouri Mortgage
dated March 1, 2019, for 3.50% First Mortgage Bonds due
2029
Supplemental Indenture to the Ameren Missouri Mortgage
dated September 15, 2019, for 3.25% First Mortgage
Bonds due 2049
Supplemental Indenture to the Ameren Missouri Mortgage
dated March 1, 2020, for 2.95% First Mortgage Bonds due
2030
Supplemental Indenture to the Ameren Missouri Mortgage
dated October 1, 2020, for 2.625% First Mortgage Bonds
due 2051
Supplemental Indenture to the Ameren Missouri Mortgage
dated June 1, 2021, for 2.15% First Mortgage Bonds due
2032
April 6, 2018 Form 8-K, Exhibit 4.2, File No. 1-2967
March 6, 2019 Form 8-K, Exhibit 4.2, File No.
1-2967
October 1, 2019 Form 8-K, Exhibit 4.2, File No.
1-2967
March 20, 2020 Form 8-K, Exhibit 4.2, File No.
1-2967
October 9, 2020 Form 8-K, Exhibit 4.2, File No.
1-2967
June 22, 2021 Form 8-K, Exhibit 4.2, File No.
1-2967
169
4.39
4.40
4.41
4.42
4.43
4.44
4.45
4.46
4.47
4.48
4.49
4.50
4.51
4.52
4.53
4.54
4.55
4.56
4.57
4.58
4.59
4.60
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Loan Agreement, dated as of December 1, 1992, between
the Missouri Environmental Authority and Ameren
Missouri, together with Indenture of Trust dated as of
December 1, 1992, between the Missouri Environmental
Authority and UMB Bank, N.A. as successor trustee to
Mercantile Bank of St. Louis, N.A.
First Amendment, dated as of February 1, 2004, to Loan
Agreement dated as of December 1, 1992, between the
Missouri Environmental Authority and Ameren Missouri
Series 1998A Loan Agreement, dated as of September 1,
1998, between the Missouri Environmental Authority and
Ameren Missouri
First Amendment, dated as of February 1, 2004, to Series
1998A Loan Agreement dated as of September 1, 1998,
between the Missouri Environmental Authority and Ameren
Missouri
Series 1998B Loan Agreement, dated as of September 1,
1998, between the Missouri Environmental Authority and
Ameren Missouri
First Amendment, dated as of February 1, 2004, to Series
1998B Loan Agreement dated as of September 1, 1998,
between the Missouri Environmental Authority and Ameren
Missouri
Series 1998C Loan Agreement, dated as of September 1,
1998, between the Missouri Environmental Authority and
Ameren Missouri
First Amendment, dated as of February 1, 2004, to Series
1998C Loan Agreement dated as of September 1, 1998,
between the Missouri Environmental Authority and Ameren
Missouri
Indenture, dated as of August 15, 2002, from Ameren
Missouri to The Bank of New York Mellon, as successor
trustee (relating to senior secured debt securities) (Ameren
Missouri Indenture)
First Supplemental Indenture to the Ameren Missouri
Indenture, dated as of May 15, 2012
Ameren Missouri Indenture Company Order, dated
March 10, 2003, establishing the 5.50% Senior Secured
Notes due 2034 (including the global note)
Ameren Missouri Indenture Company Order, dated
July 21, 2005, establishing the 5.30% Senior Secured
Notes due 2037 (including the global note)
Ameren Missouri Indenture Company Order, dated
March 20, 2009, establishing the 8.45% Senior Secured
Notes due 2039 (including the global note)
Ameren Missouri Indenture Company Order, dated
September 11, 2012, establishing the 3.90% Senior
Secured Notes due 2042 (including the global note)
Ameren Missouri Indenture Company Order, dated April 4,
2014, establishing the 3.50% Senior Secured Notes due
2024 (including the global note)
Ameren Missouri Indenture Company Order, dated April 6,
2015, establishing the 3.65% Senior Secured Notes due
2045 (including the global note)
Ameren Missouri Indenture Company Order, dated June
23, 2016, requesting authentication of an additional
$150,000,000 aggregate principal amount of 3.65% Senior
Secured Notes due 2045 (including the global note)
Ameren Missouri Indenture Company Order, dated June
15, 2017, establishing the 2.950% Senior Secured Notes
due 2027 (including the global note)
Indenture, dated as of December 1, 1998, from Ameren
Illinois (formerly Central Illinois Public Service Company)
to The Bank of New York Mellon Trust Company, N.A., as
successor trustee (CIPS Indenture)
1992 Form 10-K, Exhibit 4.38,
File No. 1-2967
March 31, 2004 Form 10-Q, Exhibit 4.10,
File No. 1-2967
September 30, 1998 Form 10-Q,
Exhibit 4.28, File No. 1-2967
March 31, 2004 Form 10-Q, Exhibit 4.11,
File No. 1-2967
September 30, 1998 Form 10-Q,
Exhibit 4.29, File No. 1-2967
March 31, 2004 Form 10-Q, Exhibit 4.12,
File No. 1-2967
September 30, 1998 Form 10-Q,
Exhibit 4.30, File No. 1-2967
March 31, 2004 Form 10-Q, Exhibit 4.13,
File No. 1-2967
August 23, 2002 Form 8-K, Exhibit 4.1,
File No. 1-2967
Exhibit 4.48, File No. 333-182258
March 11, 2003 Form 8-K, Exhibits 4.2 and 4.3,
File No. 1-2967
July 21, 2005 Form 8-K, Exhibits 4.2 and 4.3, File
No. 1-2967
March 23, 2009 Form 8-K, Exhibits 4.2 and 4.3,
File No. 1-2967
September 30, 2012 Form 10-Q, Exhibit 4.1 and
September 11, 2012 Form 8-K, Exhibit 4.2, File
No. 1-2967
April 4, 2014 Form 8-K, Exhibits 4.2 and 4.3, File
No. 1-2967
April 6, 2015 Form 8-K, Exhibits 4.2 and 4.3, File
No. 1-2967
June 23, 2016 Form 8-K, Exhibits 4.3, and 4.4, File
No. 1-2967
June 15, 2017 Form 8-K, Exhibits 4.2 and 4.3, File
No. 1-2967
Exhibit 4.4, File No. 333-59438
First Supplemental Indenture to the CIPS Indenture, dated
as of June 14, 2006
June 19, 2006 Form 8-K, Exhibit 4.2,
File No. 1-3672
Second Supplemental Indenture to the CIPS Indenture,
dated as of March 1, 2010
Exhibit 4.17, File No. 333-166095
Third Supplemental Indenture to the CIPS Indenture,
dated as of October 1, 2010
2010 Form 10-K, Exhibit 4.59, File No. 1-3672
170
4.61
4.62
4.63
4.64
4.65
4.66
4.67
4.68
4.69
4.70
4.71
4.72
4.73
4.74
4.75
4.76
4.77
4.78
4.79
4.80
4.81
4.82
4.83
4.84
4.85
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren Illinois Global Note, dated October 1, 2010,
representing CIPS Indenture Senior Notes, 6.125% due
2028
Ameren Illinois Global Note, dated October 1, 2010,
representing CIPS Indenture Senior Notes, 6.70% Series
Secured Notes due 2036
Indenture, dated as of June 1, 2006, from Ameren Illinois
(successor in interest to Central Illinois Light Company) to
The Bank of New York Mellon Trust Company, N.A., as
successor trustee (CILCO Indenture)
2010 Form 10-K, Exhibit 4.60, File No. 1-3672
2010 Form 10-K, Exhibit 4.62, File No. 1-3672
June 19, 2006 Form 8-K, Exhibit 4.3,
File No. 1-14756
First Supplemental Indenture to the CILCO Indenture,
dated October 1, 2010
October 7, 2010 Form 8-K, Exhibit 4.1,
File No. 1-3672
Second Supplemental Indenture to the CILCO Indenture
dated as of July 21, 2011
September 30, 2011 Form 10-Q, Exhibit 4.1,
File No. 1-3672
Third Supplemental Indenture to the CILCO Indenture,
dated as of October 15, 2019
September 30, 2019 Form 10-Q, Exhibit 4.2, File
No. 1-3672
CILCO Indenture Company Order, dated June 14, 2006,
establishing the 6.70% Senior Secured Notes due 2036
(including the global note)
General Mortgage Indenture and Deed of Trust, dated as
of November 1, 1992 between Ameren Illinois (successor
in interest to Illinois Power Company) and The Bank of
New York Mellon Trust Company, N.A., as successor
trustee (Ameren Illinois Mortgage)
Supplemental Indenture amending the Ameren
Illinois Mortgage dated as of December 15, 2002
Supplemental Indenture, dated as of October 1, 2010, to
Ameren Illinois Mortgage for Series CIPS-AA and CIPS-
CC
June 19, 2006 Form 8-K, Exhibit 4.6,
File No. 1-14756
1992 Form 10-K, Exhibit 4(cc), File No. 1-3004
December 23, 2002 Form 8-K, Exhibit 4.1, File
No. 1-3004
October 7, 2010 Form 8-K, Exhibit 4.9,
File No. 1-3672
Supplemental Indenture, dated as of January 15, 2011, to
Ameren Illinois Mortgage
Exhibit 4.78, File No. 333-182258
Supplemental Indenture, dated as of August 1, 2012, to
Ameren Illinois Mortgage for Series EE
August 20, 2012 Form 8-K, Exhibit 4.5,
File No. 1-3672
Supplemental Indenture, dated as of December 1, 2013, to
Ameren Illinois Mortgage for Series FF
December 10, 2013 Form 8-K, Exhibit 4.5, File No.
1-3672
Supplemental Indenture, dated as of June 1, 2014, to
Ameren Illinois Mortgage for Series GG
June 30, 2014 Form 8-K, Exhibit 4.5, File No.
1-3672
Supplemental Indenture, dated as of December 1, 2014, to
Ameren Illinois Mortgage for Series HH
December 10, 2014 Form 8-K, Exhibit 4.5, File No.
1-3672
Supplemental Indenture, dated as of December 1, 2015, to
Ameren Illinois Mortgage for Series II
December 14, 2015 Form 8-K, Exhibit 4.5, File No.
1-3672
Supplemental Indenture, dated as of October 25, 2017, to
the Ameren Illinois Mortgage
September 30, 2017 Form 10-Q, Exhibit 4.1, File
No. 1-3672
Supplemental Indenture, dated as of November 1, 2017, to
the Ameren Illinois Mortgage for 3.70% First Mortgage
Bonds due 2047
Supplemental Indenture, dated as of May 1, 2018, to
Ameren Illinois Mortgage for 3.80% First Mortgage Bonds
due 2028
Supplemental Indenture, dated as of November 1, 2018, to
Ameren Illinois Mortgage for 4.50% First Mortgage Bonds
due 2049
November 28, 2017 Form 8-K, Exhibit 4.2, File No.
1-3672
May 22, 2018 Form 8-K, Exhibit 4.2, File No.
1-3672
November 15, 2018 Form 8-K, Exhibit 4.2, File No.
1-3672
Supplemental Indenture, dated as of October 15, 2019, to
Ameren Illinois Mortgage for First Mortgage Bonds, Senior
Notes Series CILCO-AA
September 30, 2019 Form 10-Q, Exhibit 4.3, File
No. 1-3672
Supplemental Indenture, dated as of November 1, 2019, to
the Ameren Illinois Mortgage for 3.25% First Mortgage
Bonds due 2050
Supplemental Indenture, dated as of December 15, 2019,
to the Ameren Illinois Mortgage
Supplemental Indenture, dated as of November 1, 2020, to
Ameren Illinois Mortgage for 1.55% First Mortgage Bonds
due 2030
Supplemental Indenture, dated as of June 1, 2021, to
Ameren Illinois Mortgage for 0.375% First Mortgage Bonds
due 2023 and 2.90% First Mortgage Bonds due 2051
November 26, 2019 Form 8-K, Exhibit 4.2, File No.
1-3672
2019 Form 10-K, Exhibit 4.79, File No. 1-3672
November 23, 2020 Form 8-K, Exhibit 4.2, File No.
1-3672
June 29, 2021 Form 8-K, Exhibit 4.2, File No.
1-3672
171
4.86
4.87
4.88
4.89
4.90
4.91
4.92
4.93
4.94
4.95
4.96
4.97
4.98
4.99
4.100
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren Missouri
Ameren Illinois
Indenture, dated as of June 1, 2006, from Ameren Illinois
(successor in interest to Illinois Power Company) to The
Bank of New York Mellon Trust Company, N.A., as
successor trustee (Ameren Illinois Indenture)
First Supplemental Indenture, dated as of October 1, 2010,
to the Ameren Illinois Indenture for Series CIPS-AA and
CIPS-CC
June 19, 2006 Form 8-K, Exhibit 4.4,
File No. 1-14756
October 7, 2010 Form 8-K, Exhibit 4.5,
File No. 1-14756
Second Supplemental Indenture to the Ameren
Illinois Indenture dated as of July 21, 2011
September 30, 2011 Form 10-Q, Exhibit 4.2, File
No. 1-3672
Third Supplemental Indenture to the Ameren Illinois
Indenture dated as of May 15, 2012
Exhibit 4.83, File No. 333-182258
Fourth Supplemental Indenture to the Ameren Illinois
Indenture, dated as of October 15, 2019
Ameren Illinois Indenture Company Order dated August
20, 2012, establishing the 2.70% Senior Secured Notes
due 2022 (including the global note)
Ameren Illinois Indenture Company Order dated
December 10, 2013, establishing the 4.80% Senior
Secured Notes due 2043 (including the global note)
Ameren Illinois Indenture Company Order dated June 30,
2014, establishing the 4.30% Senior Secured Notes due
2044 (including the global note)
Ameren Illinois Indenture Company Order dated
December 10, 2014, establishing the 3.25% Senior
Secured Notes due 2025 (including the global note)
Ameren Illinois Indenture Company Order dated
December 14, 2015, establishing the 4.15% Senior
Secured Notes due 2046 (including the global note)
Ameren Illinois Indenture Company Order dated
December 6, 2016, requesting the authentication of an
additional $240,000,000 aggregate principal amount of
4.15% Senior Secured Notes due 2046 (including the
global note)
September 30, 2019 Form 10-Q, Exhibit 4.4, File
No. 1-3672
August 20, 2012 Form 8-K, Exhibits 4.2 and 4.3,
File No. 1-3672
December 10, 2013 Form 8-K, Exhibits 4.2 and
4.3, File No. 1-3672
June 30, 2014 Form 8-K, Exhibits 4.2 and 4.3, File
No. 1-3672
December 10, 2014 Form 8-K, Exhibits 4.2 and
4.3, File No. 1-3672
December 14, 2015 Form 8-K, Exhibits 4.2 and
4.3, File No. 1-3672
December 6, 2016 Form 8-K, Exhibits 4.2 and 4.3,
File No. 1-3672
Ameren Illinois Indenture Company Order dated October
30, 2019, establishing Senior Notes Series CILCO-AA
(including the global note)
September 30, 2019 Form 10-Q, Exhibits 4.5 and
4.6, File No. 1-3672
Description of Ameren Securities
Description of Ameren Missouri Securities
Description of Ameren Illinois Securities
Material Contracts
10.1
10.2
10.3
10.4
10.5
10.6
10.7
10.8
Ameren Companies
Fourth Amended Ameren Corporation System Utility
Money Pool Agreement, as amended January 30, 2014
June 30, 2015 Form 10-Q, Exhibit 10.1,
File No. 1-14756
Ameren
Ameren Missouri
Ameren
Ameren Missouri
Ameren
Ameren Illinois
Ameren
Ameren Illinois
Ameren
Ameren
Ameren
Amended and Restated Credit Agreement, dated as of
December 9, 2019, by and among Ameren, Ameren
Missouri and JPMorgan Chase Bank, N.A., as agent, and
the lenders party thereto.
First Amendment, dated as of November 5, 2021, by and
among Ameren, Ameren Missouri and JPMorgan Chase
Bank, N.A., as agent, and the lenders party thereto to the
Amended and Restated Credit Agreement, dated as of
December 9, 2019
Amended and Restated Credit Agreement, dated as of
December 9, 2019, by and among Ameren, Ameren Illinois
and JPMorgan Chase Bank, N.A., as agent, and the
lenders party thereto.
First Amendment, dated as of November 5, 2021, by and
among Ameren, Ameren Illinois and JPMorgan Chase
Bank, N.A., as agent, and the lenders party thereto to the
Amended and Restated Credit Agreement, dated as of
December 9, 2019
*Summary Sheet of Ameren Corporation Non-
Management Director Compensation effective as of
January 1, 2022
*Ameren’s Deferred Compensation Plan for Members of
the Board of Directors amended and restated effective
January 1, 2009, dated June 13, 2008
*Amendment dated October 12, 2009, to Ameren’s
Deferred Compensation Plan for Members of the Board of
Directors, effective January 1, 2010
172
December 11, 2019 Form 8-K, Exhibit 10.1, File
No. 1-2967
December 11, 2019 Form 8-K, Exhibit 10.2, File
No. 1-3672
June 30, 2008 Form 10-Q, Exhibit 10.3,
File No. 1-14756
2009 Form 10-K, Exhibit 10.15, File No. 1-14756
10.9
10.10
10.11
10.12
10.13
10.14
10.15
10.16
10.17
10.18
10.19
10.20
10.21
10.22
10.23
10.24
10.25
Ameren Companies
Ameren Companies
Ameren Companies
Ameren Companies
10.26
Ameren Companies
10.27
Ameren Companies
10.28
Ameren Companies
10.29
Ameren Companies
10.30
10.31
Ameren Companies
Ameren Companies
10.32
Ameren Companies
10.33
Ameren Companies
10.34
Ameren Companies
10.35
Ameren Companies
10.36
Ameren Companies
10.37
10.38
Ameren Companies
Ameren Companies
Ameren
Ameren
Ameren
Ameren Companies
Ameren Companies
Ameren Companies
Ameren Companies
Ameren Companies
Ameren Companies
Ameren Companies
Ameren Companies
*Amendment dated October 14, 2010, to Ameren’s
Deferred Compensation Plan for Members of the Board of
Directors
2010 Form 10-K, Exhibit 10.15, File No. 1-14756
*Ameren’s Deferred Compensation Plan as amended and
restated effective January 1, 2010
October 14, 2009 Form 8-K, Exhibit 10.1, File
No. 1-14756
*Amendment dated October 14, 2010 to Ameren’s
Deferred Compensation Plan
2010 Form 10-K, Exhibit 10.17, File No. 1-14756
*2018 Ameren Executive Incentive Plan
2017 Form 10-K, Exhibit 10.13, File No. 1-14756
*2019 Ameren Executive Incentive Plan
2018 Form 10-K, Exhibit 10.14, File No. 1-14756
*2020 Ameren Short-Term Incentive Plan
2019 Form 10-K, Exhibit 10.17, File No. 1-14756
*2021 Ameren Short-Term Incentive Plan
2020 Form 10-K, Exhibit 10.16, File No. 1-14756
*2022 Ameren Short-Term Incentive Plan
*2019 Base Salary Table for Named Executive Officers
2018 Form 10-K, Exhibit 10.19, File No. 1-14756
*2020 Base Salary Table for Named Executive Officers
2019 Form 10-K, Exhibit 10.23, File No. 1-14756
*2021 Base Salary Table for Named Executive Officers
2020 Form 10-K, Exhibit 10.23, File No. 1-14756
Ameren Companies
*2022 Base Salary Table for Named Executive Officers
Ameren Companies
*Second Amended and Restated Ameren Corporation
Change of Control Severance Plan
2008 Form 10-K, Exhibit 10.37, File No. 1-14756
October 14, 2009 Form 8-K, Exhibit 10.2, File
No. 1-14756
2015 Form 10-K, Exhibit 10.24, File No. 1-14756
2016 Form 10-K, Exhibit 10.24, File No. 1-14756
2017 Form 10-K, Exhibit 10.24, File No. 1-14756
2018 Form 10-K, Exhibit 10.27, File No. 1-14756
2019 Form 10-K, Exhibit 10.32, File No. 1-14756
2020 Form 10-K, Exhibit 10.33, File No. 1-14756
Exhibit 99, File No. 333-196515
2015 Form 10-K, Exhibit 10.31, File No. 1-14756
2016 Form 10-K, Exhibit 10.31, File No. 1-14756
December 13, 2017 Form 8-K, Exhibit 10.1, File
No. 1-14756
December 13, 2017 Form 8-K, Exhibit 10.2, File
No. 1-14756
2018 Form 10-K, Exhibit 10.34, File No. 1-14756
2018 Form 10-K, Exhibit 10.35, File No. 1-14756
2019 Form 10-K, Exhibit 10.41, File No. 1-14756
*First Amendment dated October 12, 2009, to the Second
Amended and Restated Ameren Change of Control
Severance Plan
*Revised Schedule I to Second Amended and Restated
Ameren Change of Control Severance Plan, as amended
*Formula for Determining 2016 Target Performance Share
Unit Awards to be Issued to Named Executive Officers
*Formula for Determining 2017 Target Performance Share
Unit Awards to be Issued to Named Executive Officers
*Formula for Determining 2018 Target Performance Share
Unit and Restricted Stock Unit Awards to be Issued to
Named Executive Officers
*Formula for Determining 2019 Target Performance Share
Unit and Restricted Stock Unit Awards to be Issued to
Named Executive Officers
*Formula for Determining 2020 Target Performance Share
Unit and Restricted Stock Unit Awards to be Issued to
Named Executive Officers
*Formula for Determining 2021 Target Performance Share
Unit and Restricted Stock Unit Awards to be Issued to
Named Executive Officers
“Formula for Determining 2022 Target Performance Share
Unit and Restricted Stock Unit Awards to be Issued to
Named Executive Officers
*Ameren Corporation 2014 Omnibus Incentive
Compensation Plan
*Form of Performance Share Unit Award Agreement for
Awards Issued in 2016 pursuant to 2014 Omnibus
Incentive Compensation Plan
*Form of Performance Share Unit Award Agreement for
Awards Issued in 2017 pursuant to 2014 Omnibus
Incentive Compensation Plan
*Form of Performance Share Unit Award Agreement for
Awards Issued in 2018 pursuant to 2014 Omnibus
Incentive Compensation Plan
*Form of Restricted Stock Unit Award Agreement for
Awards Issued in 2018 pursuant to 2014 Omnibus
Incentive Compensation Plan
*Form of Performance Share Unit Award Agreement for
Awards Issued in 2019 pursuant to 2014 Omnibus
Incentive Compensation Plan
*Form of Restricted Stock Unit Award Agreement for
Awards Issued in 2019 pursuant to 2014 Omnibus
Incentive Compensation Plan
*Form of Performance Share Unit Award Agreement for
Awards Issued in 2020 pursuant to 2014 Omnibus
Incentive Compensation Plan
173
10.39
Ameren Companies
10.40
Ameren Companies
10.41
Ameren Companies
10.42
Ameren Companies
10.43
10.44
10.45
10.46
10.47
Ameren Companies
Ameren Companies
Ameren Companies
Ameren Companies
Ameren Companies
*Form of Restricted Share Unit Award Agreement for
Awards Issued in 2020 pursuant to 2014 Omnibus
Incentive Compensation Plan
*Form of Performance Share Unit Award Agreement for
Awards Issued in 2021 pursuant to 2014 Omnibus
Incentive Compensation Plan
*Form of Restricted Share Unit Award Agreement for
Awards Issued in 2021 pursuant to 2014 Omnibus
Incentive Compensation Plan
*Form of Performance Share Unit Award Agreement for
Awards Issued in 2022 pursuant to 2014 Omnibus
Incentive Compensation Plan
*Form of Restricted Share Unit Award Agreement for
Awards Issued in 2022 pursuant to 2014 Omnibus
Incentive Compensation Plan
2019 Form 10-K, Exhibit 10.42, File No. 1-14756
2020 Form 10-K, Exhibit 10.44, File No. 1-14756
2020 Form 10-K, Exhibit 10.45, File No. 1-14756
*Ameren Corporation Severance Plan for Ameren Officers,
effective January 1, 2019
2018 Form 10-K, Exhibit 10.36, File No. 1-14756
*Ameren Supplemental Retirement Plan amended and
restated effective January 1, 2008, dated June 13, 2008
June 30, 2008 Form 10-Q, Exhibit 10.1,
File No. 1-14756
*First Amendment to amended and restated Ameren
Supplemental Retirement Plan, dated October 24, 2008
2008 Form 10-K, Exhibit 10.44, File No. 1-14756
*Ameren Corporation 2006 Omnibus Incentive
Compensation Plan
February 16, 2006 Form 8-K, Exhibit 10.3, File No.
1-14756
Subsidiaries of the Registrant
21.1
Ameren Companies
Subsidiaries of Ameren
Consent of Experts and Counsel
23.1
23.2
23.3
Power of Attorney
24.1
24.2
24.3
Ameren
Ameren Missouri
Ameren Illinois
Ameren
Ameren Missouri
Ameren Illinois
Rule 13a-14(a)/15d-14(a) Certifications
31.1
31.2
31.3
31.4
31.5
31.6
Ameren
Ameren
Ameren Missouri
Ameren Missouri
Ameren Illinois
Ameren Illinois
Section 1350 Certifications
32.1
32.2
32.3
Ameren
Ameren Missouri
Ameren Illinois
Additional Exhibits
99.1
Ameren Companies
Interactive Data Files
101.INS
101.SCH
Ameren Companies
Ameren Companies
Consent of Independent Registered Public Accounting
Firm with respect to Ameren
Consent of Independent Registered Public Accounting
Firm with respect to Ameren Missouri
Consent of Independent Registered Public Accounting
Firm with respect to Ameren Illinois
Powers of Attorney with respect to Ameren
Powers of Attorney with respect to Ameren Missouri
Powers of Attorney with respect to Ameren Illinois
Rule 13a-14(a)/15d-14(a) Certification of Principal
Executive Officer of Ameren
Rule 13a-14(a)/15d-14(a) Certification of Principal
Financial Officer of Ameren
Rule 13a-14(a)/15d-14(a) Certification of Principal
Executive Officer of Ameren Missouri
Rule 13a-14(a)/15d-14(a) Certification of Principal
Financial Officer of Ameren Missouri
Rule 13a-14(a)/15d-14(a) Certification of Principal
Executive Officer of Ameren Illinois
Rule 13a-14(a)/15d-14(a) Certification of Principal
Financial Officer of Ameren Illinois
Section 1350 Certification of Principal Executive Officer
and Principal Financial Officer of Ameren
Section 1350 Certification of Principal Executive Officer
and Principal Financial Officer of Ameren Missouri
Section 1350 Certification of Principal Executive Officer
and Principal Financial Officer of Ameren Illinois
Amended and Restated Tax Allocation Agreement, dated
as of November 21, 2013
2013 Form 10-K, Exhibit 99.1, File No. 1-14756
Inline XBRL Instance Document - the instance document
does not appear in the Interactive Data File because its
XBRL tags are embedded within the Inline XBRL
document
XBRL Taxonomy Extension Schema Document
174
101.CAL
101.LAB
101.PRE
101.DEF
Ameren Companies
Ameren Companies
Ameren Companies
Ameren Companies
104
Ameren Companies
XBRL Taxonomy Extension Calculation Linkbase
Document
XBRL Taxonomy Extension Label Linkbase Document
XBRL Taxonomy Extension Presentation Linkbase
Document
XBRL Taxonomy Extension Definition Document
Cover Page Interactive Data File (formatted as Inline
XBRL and contained in Exhibit 101)
The file number references for the Ameren Companies’ filings with the SEC are: Ameren, 1-14756; Ameren Missouri, 1-2967; and
Ameren Illinois, 1-3672.
*Compensatory plan or arrangement.
Each registrant hereby undertakes to furnish to the SEC upon request a copy of any long-term debt instrument not listed above that
such registrant has not filed as an exhibit pursuant to the exemption provided by Item 601(b)(4)(iii)(A) of Regulation S-K.
175
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, each registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized. The signatures for each undersigned company shall be deemed to
relate only to matters having reference to such company or its subsidiaries.
SIGNATURES
Date: February 22, 2022
AMEREN CORPORATION (registrant)
By
/s/ Martin J. Lyons, Jr.
Martin J. Lyons, Jr.
President and Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of
the registrant and in the capacities and on the date indicated.
/s/ Martin J. Lyons, Jr.
Martin J. Lyons, Jr.
/s/ Michael L. Moehn
Michael L. Moehn
/s/ Theresa A. Shaw
Theresa A. Shaw
*
Warner L. Baxter
*
Cynthia J. Brinkley
*
Catherine S. Brune
*
J. Edward Coleman
*
Ward H. Dickson
Noelle K. Eder
*
*
Ellen M. Fitzsimmons
Rafael Flores
*
*
Richard J. Harshman
Craig S. Ivey
*
*
James C. Johnson
*
Steven H. Lipstein
*
Leo S. Mackay, Jr.
*By /s/ Michael L. Moehn
Michael L. Moehn
Attorney-in-Fact
President and Chief Executive Officer, and Director (Principal
Executive Officer)
February 22, 2022
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
Senior Vice President, Finance, and Chief Accounting Officer
(Principal Accounting Officer)
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
176
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
Date: February 22, 2022
UNION ELECTRIC COMPANY (registrant)
By
/s/ Mark C. Birk
Mark C. Birk
Chairman and President
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on
behalf of the registrant and in the capacities and on the date indicated.
/s/ Mark C. Birk
Mark C. Birk
/s/ Michael L. Moehn
Michael L. Moehn
/s/ Theresa A. Shaw
Theresa A. Shaw
*
Bhavani Amirthalingam
Fadi M. Diya
*
*
Chonda J. Nwamu
*By /s/ Michael L. Moehn
Michael L. Moehn
Attorney-in-Fact
Chairman and President, and Director
(Principal Executive Officer)
February 22, 2022
Executive Vice President and Chief Financial Officer, and Director
(Principal Financial Officer)
February 22, 2022
Senior Vice President, Finance, and Chief Accounting Officer
(Principal Accounting Officer)
February 22, 2022
Director
Director
Director
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
177
Date: February 22, 2022
AMEREN ILLINOIS COMPANY (registrant)
By
/s/ Richard J. Mark
Richard J. Mark
Chairman and President
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on
behalf of the registrant and in the capacities and on the date indicated.
/s/ Richard J. Mark
Richard J. Mark
/s/ Michael L. Moehn
Michael L. Moehn
/s/ Theresa A. Shaw
Theresa A. Shaw
*
Chonda J. Nwamu
*
Patrick E. Smith
*
David N. Wakeman
*By /s/ Michael L. Moehn
Michael L. Moehn
Attorney-in-Fact
Chairman and President, and Director
(Principal Executive Officer)
February 22, 2022
Executive Vice President and Chief Financial Officer, and Director
(Principal Financial Officer)
February 22, 2022
Senior Vice President, Finance, and Chief Accounting Officer
(Principal Accounting Officer)
Director
Director
Director
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
178
RULE 13a-14(a)/15d-14(a) CERTIFICATION
OF PRINCIPAL EXECUTIVE OFFICER OF AMEREN CORPORATION
(required by Section 302 of the Sarbanes-Oxley Act of 2002)
Exhibit 31.1
I, Martin J. Lyons, Jr., certify that:
1. I have reviewed this report on Form 10-K for the fiscal year ended December 31, 2021, of Ameren Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the
period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report
based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the
registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial
reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent
functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information;
and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant’s internal control over financial reporting.
Date: February 22, 2022
/s/ Martin J. Lyons, Jr.
Martin J. Lyons, Jr.
President and Chief Executive Officer
(Principal Executive Officer)
RULE 13a-14(a)/15d-14(a) CERTIFICATION
OF PRINCIPAL FINANCIAL OFFICER OF AMEREN CORPORATION
(required by Section 302 of the Sarbanes-Oxley Act of 2002)
Exhibit 31.2
I, Michael L. Moehn, certify that:
1. I have reviewed this report on Form 10-K for the fiscal year ended December 31, 2021, of Ameren Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect
to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted accounting principles;
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report
based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the
registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial
reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent
functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information;
and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant’s internal control over financial reporting.
Date: February 22, 2022
/s/ Michael L. Moehn
Michael L. Moehn
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
RULE 13a-14(a)/15d-14(a) CERTIFICATION
OF PRINCIPAL EXECUTIVE OFFICER OF UNION ELECTRIC COMPANY
(required by Section 302 of the Sarbanes-Oxley Act of 2002)
Exhibit 31.3
I, Mark C. Birk, certify that:
1. I have reviewed this report on Form 10-K for the fiscal year ended December 31, 2021, of Union Electric Company;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect
to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted accounting principles;
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report
based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the
registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial
reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent
functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information;
and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant’s internal control over financial reporting.
Date: February 22, 2022
/s/ Mark C. Birk
Mark C. Birk
Chairman and President
(Principal Executive Officer)
RULE 13a-14(a)/15d-14(a) CERTIFICATION
OF PRINCIPAL FINANCIAL OFFICER OF UNION ELECTRIC COMPANY
(required by Section 302 of the Sarbanes-Oxley Act of 2002)
Exhibit 31.4
I, Michael L. Moehn, certify that:
1. I have reviewed this report on Form 10-K for the fiscal year ended December 31, 2021, of Union Electric Company;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect
to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted accounting principles;
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report
based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the
registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial
reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent
functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information;
and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant’s internal control over financial reporting.
Date: February 22, 2022
/s/ Michael L. Moehn
Michael L. Moehn
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
Exhibit 31.5
RULE 13a-14(a)/15d-14(a) CERTIFICATION
OF PRINCIPAL EXECUTIVE OFFICER OF AMEREN ILLINOIS COMPANY
(required by Section 302 of the Sarbanes-Oxley Act of 2002)
I, Richard J. Mark, certify that:
1. I have reviewed this report on Form 10-K for the fiscal year ended December 31, 2021, of Ameren Illinois Company;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect
to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted accounting principles;
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report
based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the
registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial
reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent
functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information;
and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant’s internal control over financial reporting.
Date: February 22, 2022
/s/ Richard J. Mark
Richard J. Mark
Chairman and President
(Principal Executive Officer)
RULE 13a-14(a)/15d-14(a) CERTIFICATION
OF PRINCIPAL FINANCIAL OFFICER OF AMEREN ILLINOIS COMPANY
(required by Section 302 of the Sarbanes-Oxley Act of 2002)
Exhibit 31.6
I, Michael L. Moehn, certify that:
1. I have reviewed this report on Form 10-K for the fiscal year ended December 31, 2021, of Ameren Illinois Company;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect
to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted accounting principles;
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report
based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the
registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial
reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent
functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information;
and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant’s internal control over financial reporting.
Date: February 22, 2022
/s/ Michael L. Moehn
Michael L. Moehn
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
SECTION 1350 CERTIFICATION OF
AMEREN CORPORATION
(required by Section 906 of the
Sarbanes-Oxley Act of 2002)
Exhibit 32.1
In connection with the report on Form 10-K for the fiscal year ended December 31, 2021, of Ameren Corporation (the “Registrant”) as
filed by the Registrant with the Securities and Exchange Commission on the date hereof (the “Form 10-K”), each undersigned officer of the
Registrant does hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:
(1)
(2)
The Form 10-K fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C.
78m or 78o(d)); and
The information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations
of the Registrant.
Date: February 22, 2022
/s/ Martin J. Lyons, Jr.
Martin J. Lyons, Jr.
President and Chief Executive Officer
(Principal Executive Officer)
/s/ Michael L. Moehn
Michael L. Moehn
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
SECTION 1350 CERTIFICATION OF
UNION ELECTRIC COMPANY
(required by Section 906 of the
Sarbanes-Oxley Act of 2002)
Exhibit 32.2
In connection with the report on Form 10-K for the fiscal year ended December 31, 2021, of Union Electric Company (the “Registrant”)
as filed by the Registrant with the Securities and Exchange Commission on the date hereof (the “Form 10-K”), each undersigned officer of the
Registrant does hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:
(1)
(2)
The Form 10-K fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C.
78m or 78o(d)); and
The information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations
of the Registrant.
Date: February 22, 2022
/s/ Mark C. Birk
Mark C. Birk
Chairman and President
(Principal Executive Officer)
/s/ Michael L. Moehn
Michael L. Moehn
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
SECTION 1350 CERTIFICATION OF
AMEREN ILLINOIS COMPANY
(required by Section 906 of the
Sarbanes-Oxley Act of 2002)
Exhibit 32.3
In connection with the report on Form 10-K for the fiscal year ended December 31, 2021, of Ameren Illinois Company (the “Registrant”)
as filed by the Registrant with the Securities and Exchange Commission on the date hereof (the “Form 10-K”), each undersigned officer of the
Registrant does hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:
(1)
(2)
The Form 10-K fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C.
78m or 78o(d)); and
The information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations
of the Registrant.
Date: February 22, 2022
/s/ Richard J. Mark
Richard J. Mark
Chairman and President
(Principal Executive Officer)
/s/ Michael L. Moehn
Michael L. Moehn
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
Investor Information
GA AP TO CORE EARNINGS PER SHARE RECONCILIATIONS
Year Ended Dec. 31,
2013 2014 2015 2016 2017 2018 2019 2020 2021
GAAP Diluted EPS
$1.18
$2.40
$2.59
$2.68
$2.14
$3.32
$3.35
$3.50
$3.84
Exclude results from discontinued operations
0.87
—
(0.01)
—
—
—
—
—
—
Less: Income tax expense / (benefit)
0.05
—
(0.20)
—
—
—
—
—
—
Exclude provision for discontinuing pursuit of a license
for a second nuclear unit at the Callaway Energy Center
—
—
0.29
—
—
—
—
—
—
Less: Income tax benefit
—
—
(0.11)
—
—
—
—
—
—
Charge for revaluation of deferred taxes resulting
from increased Illinois state income tax rate
—
—
—
—
0.09
—
—
—
—
Less: Federal income tax benefit
—
—
—
—
(0.03)
—
—
—
—
Charge for revaluation of deferred taxes resulting
from decreased federal income tax rate
—
—
—
—
0.66
0.05
—
—
—
Less: State income tax benefit
—
—
—
—
(0.03)
—
—
—
—
Core Diluted EPS
$2.10
$2.40
$2.56
$2.68
$2.83
$3.37
$3.35
$3.50
$3.84
WEATHER-NORMALIZED EARNINGS PER SHARE RECONCILIATIONS
Year Ended Dec. 31,
2013 2014 2015 2016 2017 2018 2019 2020 2021
Core1 Diluted EPS
$2.10
$2.40
$2.56
$2.68
$2.83
$3.37
$3.35
$3.50
$3.84
Effects of weather at Ameren Missouri
Less: Income tax expense
Weather impact, net of tax expense
0.03
(0.01)
0.02
0.05
(0.02)
0.03
(0.04)
0.01
(0.03)
0.16
(0.06)
0.10
(0.07)
0.02
(0.05)
0.43
(0.11)
0.32
0.04
(0.01)
0.03
(0.05)
0.01
(0.04)
0.02
0.00
0.02
Core Diluted EPS Normalized for Weather 2
$2.08
$2.37
$2.59
$2.58
$2.88
$3.05
$3.32
$3.54
$3.82
1. See table above for GAAP to core earnings per share reconciliations.
2. From 2013 to 2021, core diluted EPS normalized for weather increased approximately 84%, reflecting an approximately 8% compound annual growth rate, and GAAP diluted EPS increased approximately 225%, reflecting an
approximately 16% compound annual growth rate. From 2020 to 2021, core diluted EPS normalized for weather increased approximately 8%, and GAAP diluted EPS increased approximately 9.7%.
STOCK EXCHANGE LISTING
Ameren's common stock is listed on the New
York Stock Exchange. Ameren's ticker symbol
is AEE.
ANNUAL MEETING
The annual meeting of Ameren Corporation
shareholders will convene online at 10 a.m. CDT,
Thursday, May 12, 2022. The annual shareholder
meetings of Ameren Illinois Company and Union
Electric Company will be held at the same time.
SHAREHOLDER INFORMATION
For shareholder inquiries, including enrollment
information and a prospectus for Ameren’s DRPlus
Dividend Reinvestment and Stock Purchase
Plan, which enables participants to purchase
Ameren common stock through optional cash
reinvestment of dividends,
purchases and
contact Ameren’s transfer agent,
registrar,
dividend paying agent, and DRPlus plan
administrator, EQ Shareowner Services, at the
information shown on the back cover of this
report. General shareholder
information and
certain forms, including transfer instructions, are
available at www.shareowneronline.com.
DIRECT DEPOSIT OF DIVIDENDS
All registered Ameren common and Ameren
Illinois Company and Union Electric Company
preferred shareholders may have their cash
dividends automatically deposited
into 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
Financial reports,
including filings with the
Securities and Exchange Commission and
Ameren's Annual Report on Form 10-K, are
available online at amereninvestors.com. Other
information about Ameren, including our code
of ethics, corporate governance guidelines,
and committee charters, is also available at
amereninvestors.com.
P.O. Box 66149
St. Louis, MO 63166-6149
ameren.com
TRANSFER AGENT, REGISTRAR, DIVIDEND
PAYING AGENT AND DRPLUS ADMINISTRATOR
EQ Shareowner Services
Toll free: 800.255.2237
Email: Go to shareowneronline.com
and select Contact Us.
U.S. Mail
EQ Shareowner Services
P.O. Box 64874
St. Paul, Minnesota 55164-0874
Overnight Delivery
EQ Shareowner Services
1110 Centre Pointe Curve, Suite 101
Mendota Heights, Minnesota 55120-4100