COMBINED NOTES TO FINANCIAL STATEMENTS
(Unaudited)
March 31, 2019
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 has other subsidiaries that conduct other activities, such as providing shared services.
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•
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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.
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•
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Ameren Illinois Company, doing business as Ameren Illinois, operates rate-regulated electric transmission, electric distribution, and natural gas distribution businesses in Illinois.
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•
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ATXI operates a FERC rate-regulated electric transmission business. ATXI placed the Spoon River project in service in February 2018, and is developing two additional MISO-approved electric transmission projects, the Illinois Rivers and Mark Twain projects.
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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. 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 statement 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 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. The results of operations of an interim period may not give a true indication of results that may be expected for a full year. These financial statements should be read in conjunction with the financial statements and accompanying notes included in the Form 10-K.
Variable Interest Entities
As of
March 31, 2019
, Ameren and Ameren Missouri had interests in unconsolidated variable interest entities that were established to construct wind generation facilities and, ultimately, sell those constructed facilities to Ameren Missouri. Neither Ameren nor Ameren Missouri are the primary beneficiary of these variable interest entities because neither has the power to direct matters that most significantly affect the entities' activities, which include designing, financing, and constructing the wind generation facilities. As a result, these variable interest entities have not been consolidated. As of
March 31, 2019
, the maximum exposure to loss related to these variable interest entities was approximately
$16 million
, which represents the portion of interconnection study costs that may be incurred by Ameren and Ameren Missouri. The risk of a loss was assessed to be remote and, accordingly, Ameren and Ameren Missouri have not recognized a liability associated with any portion of the maximum exposure to loss. See Note 2 – Rate and Regulatory Matters for additional information on the agreements to acquire these wind generation facilities.
As of
March 31, 2019
, and
December 31, 2018
, Ameren had unconsolidated variable interests as a limited partner in various equity method investments, totaling
$23 million
and
$22 million
, respectively, included in “Other assets” on Ameren’s consolidated balance sheet. Ameren is not the primary beneficiary of these investments because it does not have the power to direct matters that most significantly affect the activities of these variable interest entities. As of
March 31, 2019
, the maximum exposure to loss related to these variable interests is limited to the investment in these partnerships of
$23 million
plus associated outstanding funding commitments of
$15 million
.
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
March 31, 2019
, the cash surrender value of company-owned life insurance at Ameren and Ameren Illinois was $
258 million
(
December 31, 2018
–
$244 million
) and $
123 million
(
December 31, 2018
–
$122 million
), respectively, while total borrowings against the policies were $
113 million
(
December 31,
2018
–
$113 million
) at both Ameren and Ameren Illinois. Ameren and Ameren Illinois have the right to offset the borrowings against the cash surrender value of the policies and, consequently, present the net asset in “Other assets” on their respective balance sheets.
Accounting and Reporting Developments
See Note 13 – Supplemental Information for additional information on our adoption of authoritative accounting guidance related to leases. See Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of the Form 10-K for additional information about recently issued authoritative accounting standards relating to the measurement of credit losses on financial instruments, fair value measurement disclosures, and defined benefit plan disclosures.
NOTE 2 – RATE AND REGULATORY MATTERS
Below is a summary of updates to significant regulatory proceedings and related lawsuits. See also Note 2 – Rate and Regulatory Matters under Part II, Item 8, of the Form 10-K. We are unable to predict the ultimate outcome of these matters, the timing of the final decisions of the various agencies and courts, or the impact on our results of operations, financial position, or liquidity.
Missouri
Wind Generation Facilities and RESRAM
In May 2019, Ameren Missouri entered into a build-transfer agreement with a subsidiary of Enel Green Power North America, Inc. to acquire, after construction, an up-to
300
-
megawatt wind generation facility to be located in northwestern Missouri. Ameren Missouri expects to file for a certificate of convenience and necessity with the MoPSC in May 2019. Final RTO interconnection costs are expected to be determined in June 2019, and a related RTO transmission interconnection agreement is expected in the fall of 2019.
In 2018, Ameren Missouri entered into two build-transfer agreements to acquire, after construction, an up-to
400
-
megawatt wind generation facility and an up-to
157
-
megawatt wind generation facility. In October 2018, the MoPSC issued an order approving a unanimous stipulation and agreement regarding a requested certificate of convenience and necessity for the up-to 400-megawatt facility. In March 2019, the MoPSC issued an order approving a nonunanimous stipulation and agreement regarding a requested certificate of convenience and necessity for the up-to 157-megawatt facility. Final MISO interconnection costs for the up-to 400-megawatt facility are expected to be determined in June 2019, and a related transmission interconnection agreement with the MISO is expected in the fall of 2019. Final MISO interconnection costs for the up-to 157-megawatt facility are expected to be determined in the fall of 2019, and a related transmission interconnection agreement with the MISO is expected in early 2020.
All three facilities are expected to be completed by the end of 2020, which would support Ameren Missouri’s compliance with the Missouri renewable energy standard. Each acquisition is subject to certain conditions, including the issuance of a certificate of convenience and necessity by the MoPSC for the up-to 300-megawatt facility, obtaining FERC approval for the up-to 157-megawatt facility and the up-to 300-megawatt facility, entering into an RTO transmission interconnection agreement at an acceptable cost for each facility, and other customary contract terms and conditions.
The three build-transfer agreements collectively represent approximately
$1.4 billion
of capital expenditures expected in 2020.
In January 2019, the MoOPC filed an appeal with the Missouri Court of Appeals, Western District, challenging the MoPSC’s December 2018 order allowing Ameren Missouri to recover, through the RESRAM, the
15%
of depreciation expense and weighted average cost of capital return not recovered under PISA. Ameren Missouri expects a decision by the end of 2019. The RESRAM is designed to mitigate the impacts of regulatory lag for the cost of compliance with renewable energy standards, including recovery of investments in wind and other renewable generation, by providing more timely recovery of costs and a return on investments not already provided for in customer rates or recovered under PISA.
RESRAM regulatory assets earn carrying costs at short-term interest rates.
MEEIA
As a result of MoPSC orders issued in September 2017, October 2018, and January 2019 related to performance incentives for the MEEIA 2013 and MEEIA 2016 programs, Ameren Missouri recognized gains of
$20 million
and
$5 million
during the
three months ended March 31, 2019
and 2018, respectively.
2018 Natural Gas Delivery Service Regulatory Rate Review
In December 2018, Ameren Missouri filed a request with the MoPSC to increase its annual revenues for natural gas delivery service by approximately
$4 million
, prior to the interim rate reduction discussed below. The natural gas delivery service rate increase request is based on a
10.30%
return on equity, a capital structure composed of
51.84%
common equity, a rate base of
$259 million
, and a test year ended June 30, 2018, with certain pro-forma adjustments through the anticipated true-up date of May 31, 2019. In December 2018, the MoPSC
issued an order approving a stipulation and agreement for an interim rate reduction of
$2 million
to reflect cost of service updates including the reduction in the federal corporate income tax rate and the amortization of excess deferred taxes as a result of the TCJA. As a result of the interim rate reduction, Ameren Missouri's requested annual revenues reflect a
$6 million
increase from interim rates. The interim rate reduction became effective January 2, 2019, and will continue until new rates are approved by the MoPSC in this regulatory rate review. In April 2019, the MoPSC staff recommended a
$1 million
increase to interim rates, based on a
9.5%
return on equity and a
50%
ceiling on the common equity ratio.
Illinois
Electric Distribution Service Rates
In April 2019, Ameren Illinois filed its annual electric distribution service formula rate update to establish the revenue requirement to be used for 2020 rates with the ICC. Pending ICC approval, this update filing will result in a
$7 million
decrease in Ameren Illinois’ electric distribution service rates, beginning in January 2020.
This update reflects an increase to the annual formula rate based on 2018 actual costs and expected net plant additions for 2019, and an increase to include the 2018 revenue requirement reconciliation adjustment. It also reflects a decrease for the conclusion of the 2017 revenue requirement reconciliation adjustment, which will be fully collected from customers in 2019, consistent with the ICC’s November 2018 annual update filing order. An ICC decision in this proceeding is expected by December 2019.
As of
March 31, 2019
, Ameren Illinois had recorded a regulatory asset of
$41 million
to reflect the difference between Ameren Illinois’ estimate of its 2019 revenue requirement and the revenue requirement reflected in customer rates, including interest.
ATXI’s Illinois Rivers Project
In August 2017, the Illinois Circuit Court for Edgar County dismissed several of ATXI’s condemnation cases related to one line segment in the Illinois Rivers project. These cases had been filed to obtain easements and rights of way necessary to complete the line segment. The court found that required notice was not given to the relevant landowners during the underlying ICC proceeding. Upon appeal, in October 2018, the Illinois Supreme Court reversed the Illinois Circuit Court for Edgar County’s decision and remanded the case for further proceedings. In December 2018, the Illinois Supreme Court issued an order to stay its October 2018 ruling. In February 2019, the landowners filed an appeal with the United States Supreme Court, which was denied in April 2019. In the second quarter of 2019, ATXI intends to seek to reinstate the condemnation cases that were previously dismissed. ATXI expects to complete the line segment in 2020. The estimated line segment capital expenditure investment is approximately
$81 million
, of which
$38 million
was invested as of
March 31, 2019
. The other eight line segments of the Illinois Rivers project have already been completed and placed in-service and are not affected by these proceedings.
Federal
FERC Complaint Cases
In November 2013, a customer group filed a complaint case with the FERC seeking a reduction in the allowed base return on common equity 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 return on common equity to 10.32%, or a 10.82% total allowed return on common equity with the inclusion of a 50 basis point incentive adder for participation in an RTO, effective
since September 2016. The
10.82%
allowed return on common equity may be replaced prospectively after the FERC issues a final order in the February 2015 complaint case, discussed below.
Since the maximum FERC-allowed refund period for the November 2013 complaint case ended in February 2015, another customer complaint case was filed in February 2015. MISO transmission owners subsequently filed a motion to dismiss the February 2015 complaint, as discussed below. The February 2015 complaint case seeks a further reduction in the allowed base return on common equity for FERC-regulated transmission rate base under the MISO tariff.
In June 2016, an administrative law judge issued an initial decision in the February 2015 complaint case. If approved by the FERC, it would lower the allowed base return on common equity for the 15-month period of February 2015 to May 2016 to
9.70%
, or a 10.20% total allowed return on equity with the inclusion of a 50 basis point incentive adder for participation in an RTO. It would also require customer refunds, with interest, for that 15-month period.
A final FERC order would also establish the allowed return on common equity that will apply prospectively from the effective date of such order, replacing the current
10.82%
total return on common equity. In April 2017, the United States Court of Appeals for the District of Columbia Circuit vacated and remanded to the FERC an order in an unrelated case in which the FERC established the allowed base return on common equity methodology subsequently used in the two MISO complaint cases described above.
In October 2018, the FERC issued an order in an unrelated case that proposed a new methodology for determining the base return on equity and required further briefs from the participants. In November 2018, the FERC issued an order related to the February 2015 complaint case and the September 2016 order, which required participants to file briefs in February 2019 regarding the FERC’s proposed methodology for determining the base return on common equity, including whether and how to apply the proposed methodology to the two MISO complaint cases. In March 2019, the FERC issued separate Notices of Inquiry regarding its allowed base return on common equity policy and its transmission incentives policy, with comments due in June 2019. The Notice of Inquiry addressing the FERC’s return on common equity policy, among other things, broadens the ability to comment on the new methodology
beyond electric utilities that are participants in the complaint cases, and the transmission incentives Notice of Inquiry is open for industry comment on the FERC’s transmission incentive policy, including incentive adders to the return on common equity. Ameren is unable to predict the ultimate impact of the proposed methodology on these complaint cases or the Notices of Inquiry at this time.
As the FERC is under no deadline to issue a final order, the timing of the final order in the February 2015 complaint case, and any potential impact to the amounts refunded as a result of the September 2016 order, is uncertain.
In September 2017, MISO transmission owners, including Ameren Missouri, Ameren Illinois, and ATXI, filed a motion to dismiss the February 2015 complaint case with the FERC. The MISO transmission owners maintain that the February 2015 complaint was predicated on the now superseded
12.38%
allowed base return on common equity and is therefore inapplicable given the current
10.32%
allowed base return on common equity. The MISO transmission owners further maintain that the current
10.32%
allowed base return on common equity has not been proven to be unjust and unreasonable based on information provided, including the base return on common equity methodology ranges set forth in the February 2015 complaint case and in the initial decision issued by an administrative law judge in June 2016. Additionally, the MISO transmission owners maintain that the February 2015 complaint should be dismissed because the approach utilized in the case to assert that a return on common equity was unjust and unreasonable was insufficient. That same approach was rejected by the United States Court of Appeals for the District of Columbia Circuit in an unrelated case, as discussed above. The FERC is under no deadline to issue an order on this motion.
As of
March 31, 2019
, Ameren and Ameren Illinois had recorded current regulatory liabilities of
$44 million
and
$26 million
, respectively, to reflect the expected refunds, including interest, associated with the reduced allowed return on common equity in the initial decision in the February 2015 complaint case. Ameren Missouri does not expect that a reduction in the FERC-allowed base return on common equity would be material to its results of operations, financial position, or liquidity.
NOTE 3 – 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, 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, in the Form 10-K for a description of our indebtedness provisions and other covenants as well as a description of money pool arrangements.
The Missouri Credit Agreement and the Illinois Credit Agreement were not utilized for direct borrowings during the
three months ended March 31, 2019
, but were used to support commercial paper issuances and to issue letters of credit. Based on commercial paper outstanding and letters of credit issued under the Credit Agreements, the aggregate credit capacity available under the Credit Agreements to Ameren (parent), Ameren Missouri, and Ameren Illinois, collectively, at
March 31, 2019
, was
$1.3 billion
. The Ameren Companies were in compliance with the covenants in their Credit Agreements as of
March 31, 2019
. As of
March 31, 2019
, the ratios of consolidated indebtedness to consolidated total capitalization, calculated in accordance with the provisions of the Credit Agreements, were
54%
,
48%
, and
47%
for Ameren, Ameren Missouri, and Ameren Illinois, respectively.
Commercial Paper
The following table presents commercial paper outstanding, net of issuance discounts, as of
March 31, 2019
, and
December 31, 2018
:
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March 31, 2019
|
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December 31, 2018
|
|
Ameren (parent)
|
$
|
618
|
|
|
$
|
470
|
|
|
Ameren Missouri
|
55
|
|
|
55
|
|
|
Ameren Illinois
|
126
|
|
|
72
|
|
|
Ameren consolidated
|
$
|
799
|
|
|
$
|
597
|
|
The following table summarizes the borrowing activity and relevant interest rates under Ameren (parent)’s, Ameren Missouri’s, and Ameren Illinois’ commercial paper programs for the
three months ended March 31, 2019
and 2018:
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|
|
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|
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|
|
|
Ameren
(parent)
|
Ameren
Missouri
|
Ameren
Illinois
|
Ameren
Consolidated
|
|
2019
|
|
|
|
|
|
|
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Average daily commercial paper outstanding at par value
|
|
$
|
480
|
|
|
$
|
246
|
|
$
|
89
|
|
$
|
815
|
|
|
Weighted-average interest rate
|
|
2.87
|
%
|
|
2.84
|
%
|
2.76
|
%
|
2.85
|
%
|
|
Peak commercial paper during period at par value
(a)
|
|
$
|
618
|
|
|
$
|
549
|
|
$
|
130
|
|
$
|
1,113
|
|
|
Peak interest rate
|
|
3.10
|
%
|
|
2.97
|
%
|
2.90
|
%
|
3.10
|
%
|
|
2018
|
|
|
|
|
|
|
|
Average daily commercial paper outstanding at par value
|
|
$
|
378
|
|
|
$
|
213
|
|
$
|
137
|
|
$
|
728
|
|
|
Weighted-average interest rate
|
|
1.90
|
%
|
|
1.88
|
%
|
1.96
|
%
|
1.90
|
%
|
|
Peak commercial paper during period at par value
(a)
|
|
$
|
454
|
|
|
$
|
282
|
|
$
|
238
|
|
$
|
960
|
|
|
Peak interest rate
|
|
2.35
|
%
|
|
2.40
|
%
|
2.55
|
%
|
2.55
|
%
|
|
|
|
|
(a)
|
The timing of peak outstanding commercial paper issuances varies by company. Therefore, the sum of individual company peak amounts may not equal the Ameren consolidated peak commercial paper issuances for the period.
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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. The average interest rate for borrowings under the money pool for the
three months ended March 31, 2019
and
2018
, was
2.87%
and
1.90%
, respectively. See Note 8 – Related-party Transactions for the amount of interest income and expense from the money pool arrangements recorded by the Ameren Companies for the
three months ended March 31, 2019
and
2018
.
NOTE 4 – LONG-TERM DEBT AND EQUITY FINANCINGS
Ameren
For the three months ended
March 31, 2019
, Ameren issued a total of
0.3 million
shares of common stock under its DRPlus and 401(k) plan, and received proceeds of
$19 million
. In addition, in the first quarter of 2019, Ameren issued
0.8 million
shares of common stock valued at
$54 million
upon the vesting of stock-based compensation.
Ameren Missouri
In March 2019, Ameren Missouri issued
$450 million
of
3.50%
first mortgage bonds due March 2029, with interest payable semiannually on March 15 and September 15 of each year, beginning September 15, 2019. Ameren Missouri received net proceeds of
$447 million
, which were used to repay outstanding short-term debt, including short-term debt that Ameren Missouri incurred in connection with the repayment of
$329 million
of its
6.70%
senior secured notes that matured February 1, 2019.
Indenture Provisions and Other Covenants
See Note 5 – Long-Term Debt and Equity Financings under Part II, Item 8, in the Form 10-K for a description of our indenture provisions and other covenants, as well as restrictions on the payment of dividends. At
March 31, 2019
, 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 agreement.
Off-balance-sheet Arrangements
At
March 31, 2019
, none of the Ameren Companies had any significant off-balance-sheet financing arrangements, other than variable interest entities, letters of credit, and Ameren (parent) guarantee arrangements on behalf of its subsidiaries. See Note 1 – Summary of Significant Accounting Policies for further detail concerning variable interest entities.
NOTE 5 – OTHER INCOME, NET
The following table presents the components of “Other Income, Net” in the Ameren Companies’ statements of income for the
three months ended March 31, 2019
and
2018
:
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Three Months
|
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|
|
2019
|
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2018
|
|
|
Ameren:
|
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|
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|
|
|
|
|
|
|
|
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|
|
|
|
|
|
Three Months
|
|
|
|
2019
|
|
2018
|
|
|
Allowance for equity funds used during construction
|
$
|
6
|
|
|
$
|
5
|
|
|
|
Interest income on industrial development revenue bonds
|
6
|
|
|
6
|
|
|
|
Other interest income
|
2
|
|
|
2
|
|
|
|
Non-service cost components of net periodic benefit income
(a)
|
22
|
|
|
16
|
|
|
|
Miscellaneous income
|
2
|
|
|
1
|
|
|
|
Donations
|
(6
|
)
|
|
(5
|
)
|
|
|
Miscellaneous expense
|
(3
|
)
|
|
(2
|
)
|
|
|
Total Other Income, Net
|
$
|
29
|
|
|
$
|
23
|
|
|
|
Ameren Missouri:
|
|
|
|
|
|
Allowance for equity funds used during construction
|
$
|
4
|
|
|
$
|
4
|
|
|
|
Interest income on industrial development revenue bonds
|
6
|
|
|
6
|
|
|
|
Non-service cost components of net periodic benefit income
(a)
|
4
|
|
|
5
|
|
|
|
Miscellaneous income
|
1
|
|
|
1
|
|
|
|
Donations
|
(2
|
)
|
|
(1
|
)
|
|
|
Miscellaneous expense
|
(1
|
)
|
|
(2
|
)
|
|
|
Total Other Income, Net
|
$
|
12
|
|
|
$
|
13
|
|
|
|
Ameren Illinois:
|
|
|
|
|
|
Allowance for equity funds used during construction
|
$
|
2
|
|
|
$
|
1
|
|
|
|
Interest income
|
2
|
|
|
2
|
|
|
|
Non-service cost components of net periodic benefit income
|
12
|
|
|
7
|
|
|
|
Miscellaneous income
|
1
|
|
|
—
|
|
|
|
Donations
|
(4
|
)
|
|
(4
|
)
|
|
|
Miscellaneous expense
|
(2
|
)
|
|
—
|
|
|
|
Total Other Income, Net
|
$
|
11
|
|
|
$
|
6
|
|
|
|
|
|
|
(a)
|
For the
three months ended March 31, 2019
and 2018, the non-service cost components of net periodic benefit income were partially offset by a
$7 million
and
$4 million
deferral, respectively, due to a regulatory tracking mechanism for the difference between the level of such costs incurred by Ameren Missouri under GAAP and the level of such costs included in rates.
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NOTE 6 – DERIVATIVE FINANCIAL INSTRUMENTS
We use derivatives to manage the risk of changes in market prices for natural gas and power, 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 inventories that differ from the cost of those commodities in inventory; and
|
|
|
|
|
•
|
actual cash outlays for the purchase of these commodities that differ from anticipated cash outlays.
|
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.
The following table presents open gross commodity contract volumes by commodity type for derivative assets and liabilities as of
March 31, 2019
, and
December 31, 2018
. As of
March 31, 2019
, these contracts extended through October 2022, October 2023, and May 2032 for fuel oils, natural gas, and power, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity (in millions)
|
|
|
2019
|
2018
|
|
Commodity
|
Ameren Missouri
|
Ameren Illinois
|
Ameren
|
Ameren Missouri
|
Ameren Illinois
|
Ameren
|
|
Fuel oils (in gallons)
(a)
|
65
|
|
—
|
|
65
|
|
66
|
|
—
|
|
66
|
|
|
Natural gas (in mmbtu)
|
18
|
|
156
|
|
174
|
|
19
|
|
154
|
|
173
|
|
|
Power (in megawatthours)
|
2
|
|
8
|
|
10
|
|
1
|
|
8
|
|
9
|
|
|
|
|
|
(a)
|
Consists of ultra-low-sulfur diesel products.
|
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 7 – 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.
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
March 31, 2019
, and
December 31, 2018
, all contracts that met the definition of a derivative and were not eligible for the NPNS exception received regulatory deferral.
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
March 31, 2019
, and
December 31, 2018
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
December 31, 2018
|
|
|
Balance Sheet Location
|
|
Ameren
Missouri
|
|
|
Ameren
Illinois
|
|
|
Ameren
|
|
|
|
Ameren
Missouri
|
|
|
Ameren
Illinois
|
|
|
Ameren
|
|
Fuel oils
|
Other current assets
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
|
Other assets
|
|
4
|
|
|
|
—
|
|
|
|
4
|
|
|
|
|
5
|
|
|
|
—
|
|
|
|
5
|
|
|
Natural gas
|
Other current assets
|
|
—
|
|
|
|
3
|
|
|
|
3
|
|
|
|
|
—
|
|
|
|
1
|
|
|
|
1
|
|
|
|
Other assets
|
|
—
|
|
|
|
3
|
|
|
|
3
|
|
|
|
|
—
|
|
|
|
2
|
|
|
|
2
|
|
|
Power
|
Other current assets
|
|
1
|
|
|
|
—
|
|
|
|
1
|
|
|
|
|
4
|
|
|
|
—
|
|
|
|
4
|
|
|
|
Other assets
|
|
1
|
|
|
|
—
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Total assets
|
$
|
11
|
|
|
$
|
6
|
|
|
$
|
17
|
|
|
|
$
|
12
|
|
|
$
|
3
|
|
|
$
|
15
|
|
|
Fuel oils
|
Other current liabilities
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
|
Other deferred credits and liabilities
|
|
4
|
|
|
|
—
|
|
|
|
4
|
|
|
|
|
9
|
|
|
|
—
|
|
|
|
9
|
|
|
Natural gas
|
Other current liabilities
|
|
2
|
|
|
|
6
|
|
|
|
8
|
|
|
|
|
4
|
|
|
|
8
|
|
|
|
12
|
|
|
|
Other deferred credits and liabilities
|
|
1
|
|
|
|
4
|
|
|
|
5
|
|
|
|
|
1
|
|
|
|
6
|
|
|
|
7
|
|
|
Power
|
Other current liabilities
|
|
2
|
|
|
|
14
|
|
|
|
16
|
|
|
|
|
4
|
|
|
|
14
|
|
|
|
18
|
|
|
|
Other deferred credits and liabilities
|
|
—
|
|
|
|
170
|
|
|
|
170
|
|
|
|
|
—
|
|
|
|
169
|
|
|
|
169
|
|
|
|
Total liabilities
|
$
|
12
|
|
|
$
|
194
|
|
|
$
|
206
|
|
|
|
$
|
22
|
|
|
$
|
197
|
|
|
$
|
219
|
|
The Ameren Companies elect to present the fair value amounts of derivative assets and derivative liabilities subject to an enforceable master netting arrangement or similar agreement at the gross amounts on the balance sheet. However, if the gross amounts recognized on the balance sheet were netted with derivative instruments and cash collateral received or posted, the net amounts would not be materially different from the gross amounts at
March 31, 2019
, and
December 31, 2018
.
Concentrations of 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. We calculate maximum exposures based on the gross fair value of financial instruments, including NPNS and other accrual contracts. These exposures are calculated on a gross basis, which include affiliate exposure not eliminated at the consolidated Ameren level. As of
March 31, 2019
, if counterparty groups were to fail completely to perform on contracts, the Ameren Companies’ maximum exposure would have been immaterial with or without consideration of the application of master netting arrangements or similar agreements and collateral held.
Derivative Instruments with Credit Risk-related Contingent Features
Our commodity contracts 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 following table presents, as of
March 31, 2019
, the aggregate fair value of all 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. 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 on
March 31, 2019
, and (2) those counterparties with rights to do so requested collateral.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Fair Value of
Derivative Liabilities
(a)
|
|
Cash
Collateral Posted
|
|
Potential Aggregate Amount of
Additional Collateral Required
(b)
|
|
Ameren Missouri
|
$
|
64
|
|
|
$
|
4
|
|
|
$
|
58
|
|
|
Ameren Illinois
|
39
|
|
|
—
|
|
|
29
|
|
|
Ameren
|
$
|
103
|
|
|
$
|
4
|
|
|
$
|
87
|
|
|
|
|
|
(a)
|
Before consideration of master netting arrangements or similar agreements and including NPNS and other accrual contract exposures.
|
|
|
|
|
(b)
|
As collateral requirements with certain counterparties are based on master netting arrangements or similar agreements, the aggregate amount of additional collateral required to be posted is determined after consideration of the effects of such arrangements.
|
NOTE 7 – 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. Authoritative accounting guidance provides a fair value hierarchy that prioritizes the inputs used to measure fair value. On a quarterly basis, all financial assets and liabilities carried at fair value are classified and disclosed in one of three hierarchy levels. Financial assets and liabilities are classified in their entirety according to the lowest level of input that is significant to the fair value measurement. See Note 8 – Fair Value Measurements under Part II, Item 8, of the Form 10-K for information related to hierarchy levels.
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 the
three months ended March 31, 2019
or
2018
. At
March 31, 2019
, and
December 31, 2018
, the counterparty default risk valuation adjustment related to derivative contracts was immaterial for Ameren, Ameren Missouri, and Ameren Illinois.
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
March 31, 2019
, and
December 31, 2018
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
|
December 31, 2018
|
|
|
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Ameren
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative assets – commodity contracts
(a)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel oils
|
$
|
2
|
|
$
|
—
|
|
$
|
7
|
|
$
|
9
|
|
|
|
$
|
1
|
|
$
|
—
|
|
$
|
7
|
|
$
|
8
|
|
|
|
|
Natural gas
|
—
|
|
3
|
|
3
|
|
6
|
|
|
|
—
|
|
2
|
|
1
|
|
3
|
|
|
|
|
Power
|
—
|
|
—
|
|
2
|
|
2
|
|
|
|
—
|
|
1
|
|
3
|
|
4
|
|
|
|
|
Total derivative assets – commodity contracts
|
$
|
2
|
|
$
|
3
|
|
$
|
12
|
|
$
|
17
|
|
|
|
$
|
1
|
|
$
|
3
|
|
$
|
11
|
|
$
|
15
|
|
|
|
|
Nuclear decommissioning trust fund:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. large capitalization
|
$
|
488
|
|
$
|
—
|
|
$
|
—
|
|
$
|
488
|
|
|
|
$
|
427
|
|
$
|
—
|
|
$
|
—
|
|
$
|
427
|
|
|
|
|
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and agency securities
|
—
|
|
151
|
|
—
|
|
151
|
|
|
|
—
|
|
148
|
|
—
|
|
148
|
|
|
|
|
Corporate bonds
|
—
|
|
76
|
|
—
|
|
76
|
|
|
|
—
|
|
72
|
|
—
|
|
72
|
|
|
|
|
Other
|
—
|
|
33
|
|
—
|
|
33
|
|
|
|
—
|
|
32
|
|
—
|
|
32
|
|
|
|
|
Total nuclear decommissioning trust fund
|
$
|
488
|
|
$
|
260
|
|
$
|
—
|
|
$
|
748
|
|
(b)
|
|
$
|
427
|
|
$
|
252
|
|
$
|
—
|
|
$
|
679
|
|
(b)
|
|
|
Total Ameren
|
$
|
490
|
|
$
|
263
|
|
$
|
12
|
|
$
|
765
|
|
|
|
$
|
428
|
|
$
|
255
|
|
$
|
11
|
|
$
|
694
|
|
|
|
Ameren Missouri
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative assets – commodity contracts
(a)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel oils
|
$
|
2
|
|
$
|
—
|
|
$
|
7
|
|
$
|
9
|
|
|
|
$
|
1
|
|
$
|
—
|
|
$
|
7
|
|
$
|
8
|
|
|
|
|
Power
|
—
|
|
—
|
|
2
|
|
2
|
|
|
|
—
|
|
1
|
|
3
|
|
4
|
|
|
|
|
Total derivative assets – commodity contracts
|
$
|
2
|
|
$
|
—
|
|
$
|
9
|
|
$
|
11
|
|
|
|
$
|
1
|
|
$
|
1
|
|
$
|
10
|
|
$
|
12
|
|
|
|
|
Nuclear decommissioning trust fund:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. large capitalization
|
$
|
488
|
|
$
|
—
|
|
$
|
—
|
|
$
|
488
|
|
|
|
$
|
427
|
|
$
|
—
|
|
$
|
—
|
|
$
|
427
|
|
|
|
|
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and agency securities
|
—
|
|
151
|
|
—
|
|
151
|
|
|
|
—
|
|
148
|
|
—
|
|
148
|
|
|
|
|
Corporate bonds
|
—
|
|
76
|
|
—
|
|
76
|
|
|
|
—
|
|
72
|
|
—
|
|
72
|
|
|
|
|
Other
|
—
|
|
33
|
|
—
|
|
33
|
|
|
|
—
|
|
32
|
|
—
|
|
32
|
|
|
|
|
Total nuclear decommissioning trust fund
|
$
|
488
|
|
$
|
260
|
|
$
|
—
|
|
$
|
748
|
|
(b)
|
|
$
|
427
|
|
$
|
252
|
|
$
|
—
|
|
$
|
679
|
|
(b)
|
|
|
Total Ameren Missouri
|
$
|
490
|
|
$
|
260
|
|
$
|
9
|
|
$
|
759
|
|
|
|
$
|
428
|
|
$
|
253
|
|
$
|
10
|
|
$
|
691
|
|
|
|
Ameren Illinois
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative assets – commodity contracts
(a)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
|
$
|
—
|
|
$
|
3
|
|
$
|
3
|
|
$
|
6
|
|
|
|
$
|
—
|
|
$
|
2
|
|
$
|
1
|
|
$
|
3
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Ameren
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities – commodity contracts
(a)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel oils
|
$
|
1
|
|
$
|
—
|
|
$
|
6
|
|
$
|
7
|
|
|
|
$
|
2
|
|
$
|
—
|
|
$
|
11
|
|
$
|
13
|
|
|
|
|
Natural gas
|
—
|
|
10
|
|
3
|
|
13
|
|
|
|
—
|
|
15
|
|
4
|
|
19
|
|
|
|
|
Power
|
—
|
|
—
|
|
186
|
|
186
|
|
|
|
—
|
|
1
|
|
186
|
|
187
|
|
|
|
|
Total Ameren
|
$
|
1
|
|
$
|
10
|
|
$
|
195
|
|
$
|
206
|
|
|
|
$
|
2
|
|
$
|
16
|
|
$
|
201
|
|
$
|
219
|
|
|
|
Ameren Missouri
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities – commodity contracts
(a)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel oils
|
$
|
1
|
|
$
|
—
|
|
$
|
6
|
|
$
|
7
|
|
|
|
$
|
2
|
|
$
|
—
|
|
$
|
11
|
|
$
|
13
|
|
|
|
|
Natural gas
|
—
|
|
3
|
|
—
|
|
3
|
|
|
|
—
|
|
5
|
|
—
|
|
5
|
|
|
|
|
Power
|
—
|
|
—
|
|
2
|
|
2
|
|
|
|
—
|
|
1
|
|
3
|
|
4
|
|
|
|
|
Total Ameren Missouri
|
$
|
1
|
|
$
|
3
|
|
$
|
8
|
|
$
|
12
|
|
|
|
$
|
2
|
|
$
|
6
|
|
$
|
14
|
|
$
|
22
|
|
|
|
Ameren Illinois
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities – commodity contracts
(a)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
|
$
|
—
|
|
$
|
7
|
|
$
|
3
|
|
$
|
10
|
|
|
|
$
|
—
|
|
$
|
10
|
|
$
|
4
|
|
$
|
14
|
|
|
|
|
Power
|
—
|
|
—
|
|
184
|
|
184
|
|
|
|
—
|
|
—
|
|
183
|
|
183
|
|
|
|
|
Total Ameren Illinois
|
$
|
—
|
|
$
|
7
|
|
$
|
187
|
|
$
|
194
|
|
|
|
$
|
—
|
|
$
|
10
|
|
$
|
187
|
|
$
|
197
|
|
|
|
|
|
|
(a)
|
The derivative asset and liability balances are presented net of registrant and counterparty credit considerations.
|
|
|
|
|
(b)
|
Balance excludes
$6 million
and
$5 million
of cash and cash equivalents, receivables, payables, and accrued income, net, for
March 31, 2019
, and
December 31, 2018
, respectively.
|
Level 3 fuel oils and natural gas 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
three months ended March 31, 2019
and
2018
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
|
2018
|
|
|
Ameren
Missouri
|
Ameren
Illinois
|
Ameren
|
|
|
Ameren Missouri
|
Ameren Illinois
|
Ameren
|
|
Beginning balance at January 1
|
$
|
—
|
|
$
|
(183
|
)
|
$
|
(183
|
)
|
|
|
$
|
7
|
|
$
|
(195
|
)
|
$
|
(188
|
)
|
|
Realized and unrealized losses included in regulatory assets/liabilities
|
—
|
|
(4
|
)
|
(4
|
)
|
|
|
(2
|
)
|
1
|
|
(1
|
)
|
|
Settlements
|
—
|
|
3
|
|
3
|
|
|
|
(1
|
)
|
3
|
|
2
|
|
|
Ending balance at March 31
|
$
|
—
|
|
$
|
(184
|
)
|
$
|
(184
|
)
|
|
|
$
|
4
|
|
$
|
(191
|
)
|
$
|
(187
|
)
|
|
Change in unrealized losses related to assets/liabilities held at March 31
|
$
|
—
|
|
$
|
(4
|
)
|
$
|
(4
|
)
|
|
|
$
|
(1
|
)
|
$
|
1
|
|
$
|
—
|
|
For the
three months ended March 31, 2019
and
2018
, there were no material transfers between Level 1 and Level 2, Level 1 and Level 3, or Level 2 and Level 3 related to derivative commodity contracts.
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 net 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
March 31, 2019
, and
December 31, 2018
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value
(a)
|
|
|
|
Weighted Average
|
|
|
Commodity
|
|
Assets
|
|
Liabilities
|
Valuation Technique(s)
|
Unobservable Input
|
Range
|
|
2019
|
Power
(b)
|
$
|
2
|
$
|
(186)
|
Discounted cash flow
|
Average forward peak and off-peak pricing
–
forwards/swaps ($/MWh)
(c)
|
24 – 38
|
28
|
|
|
|
|
|
|
|
|
Nodal basis ($/MWh)
(c)
|
(9) – 0
|
(2)
|
|
|
|
|
|
|
|
Fundamental energy production model
|
Estimated future natural gas prices ($/mmbtu)
(c)
|
3 – 4
|
3
|
|
2018
|
Power
(b)
|
$
|
3
|
$
|
(186)
|
Discounted cash flow
|
Average forward peak and off-peak pricing – forwards/swaps ($/MWh)
(c)
|
23 – 39
|
28
|
|
|
|
|
|
|
|
|
Nodal basis ($/MWh)
(c)
|
(9) – 0
|
(2)
|
|
|
|
|
|
|
|
Fundamental energy production model
|
Estimated future natural gas prices ($/mmbtu)
(c)
|
3 – 4
|
3
|
|
|
|
|
(a)
|
The derivative asset and liability balances are presented net of registrant and counterparty credit considerations.
|
|
|
|
|
(b)
|
Power valuations use visible third-party pricing evaluated by month for peak and off-peak demand through 2022. Valuations beyond 2022 use fundamentally modeled pricing by month for peak and off-peak demand.
|
|
|
|
|
(c)
|
Generally, significant increases (decreases) in this input in isolation would result in a significantly higher (lower) fair value measurement.
|
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
March 31, 2019
, and
December 31, 2018
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
|
Carrying
Amount
|
|
Fair Value
|
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Ameren:
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents, and restricted cash
|
$
|
118
|
|
|
$
|
118
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
118
|
|
|
Investments in held-to-maturity debt securities
(a)
|
270
|
|
|
—
|
|
|
270
|
|
|
—
|
|
|
270
|
|
|
Short-term debt
|
799
|
|
|
—
|
|
|
799
|
|
|
—
|
|
|
799
|
|
|
Long-term debt (including current portion)
(a)
|
8,557
|
|
(b)
|
—
|
|
|
8,623
|
|
|
447
|
|
(c)
|
9,070
|
|
|
Ameren Missouri:
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents, and restricted cash
|
$
|
12
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
Investments in held-to-maturity debt securities
(a)
|
270
|
|
|
—
|
|
|
270
|
|
|
—
|
|
|
270
|
|
|
Short-term debt
|
55
|
|
|
—
|
|
|
55
|
|
|
—
|
|
|
55
|
|
|
Long-term debt (including current portion)
(a)
|
4,116
|
|
(b)
|
—
|
|
|
4,404
|
|
|
—
|
|
|
4,404
|
|
|
Ameren Illinois:
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents, and restricted cash
|
$
|
93
|
|
|
$
|
93
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
93
|
|
|
Short-term debt
|
126
|
|
|
—
|
|
|
126
|
|
|
—
|
|
|
126
|
|
|
Long-term debt (including current portion)
|
3,296
|
|
(b)
|
—
|
|
|
3,515
|
|
|
—
|
|
|
3,515
|
|
|
|
December 31, 2018
|
|
Ameren:
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents, and restricted cash
|
$
|
107
|
|
|
$
|
107
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
107
|
|
|
Investments in held-to-maturity debt securities
(a)
|
270
|
|
|
—
|
|
|
270
|
|
|
—
|
|
|
270
|
|
|
Short-term debt
|
597
|
|
|
—
|
|
|
597
|
|
|
—
|
|
|
597
|
|
|
Long-term debt (including current portion)
(a)
|
8,439
|
|
(b)
|
—
|
|
|
8,240
|
|
|
429
|
|
(c)
|
8,669
|
|
|
Ameren Missouri:
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents, and restricted cash
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
Investments in held-to-maturity debt securities
(a)
|
270
|
|
|
—
|
|
|
270
|
|
|
—
|
|
|
270
|
|
|
Short-term debt
|
55
|
|
|
—
|
|
|
55
|
|
|
—
|
|
|
55
|
|
|
Long-term debt (including current portion)
(a)
|
3,998
|
|
(b)
|
—
|
|
|
4,156
|
|
|
—
|
|
|
4,156
|
|
|
Ameren Illinois:
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents, and restricted cash
|
$
|
80
|
|
|
$
|
80
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
80
|
|
|
Short-term debt
|
72
|
|
|
—
|
|
|
72
|
|
|
—
|
|
|
72
|
|
|
Long-term debt (including current portion)
|
3,296
|
|
(b)
|
—
|
|
|
3,391
|
|
|
—
|
|
|
3,391
|
|
|
|
|
|
(a)
|
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
March 31, 2019
, and
December 31, 2018
, the carrying amount of both the investments in industrial development revenue bonds and the finance obligations approximated fair value.
|
|
|
|
|
(b)
|
Included unamortized debt issuance costs, which were excluded from the fair value measurement, of
$62 million
,
$25 million
, and
$32 million
for Ameren, Ameren Missouri, and Ameren Illinois, respectively, as of
March 31, 2019
. Included unamortized debt issuance costs, which were excluded from the fair value measurement, of
$58 million
,
$22 million
, and
$31 million
for Ameren, Ameren Missouri, and Ameren Illinois, respectively, as of
December 31, 2018
.
|
|
|
|
|
(c)
|
The Level 3 fair value amount consists of ATXI’s senior unsecured notes.
|
NOTE 8 – RELATED-PARTY TRANSACTIONS
In the normal course of business, Ameren Missouri and Ameren Illinois have engaged in, and may in the future 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. For a discussion of material related-party agreements and money pool arrangements, see Note 13 – Related-party Transactions and Note 4 – Short-term Debt and Liquidity under Part II, Item 8, of the Form 10-K.
Electric Power Supply Agreement
In April 2019, Ameren Illinois conducted a procurement event, administered by the IPA, to purchase energy products. Ameren Missouri was among the winning suppliers in this event. As a result, in April 2019, Ameren Missouri and Ameren Illinois entered into an energy product agreement by which Ameren Missouri agreed to sell, and Ameren Illinois agreed to purchase,
288,000
megawatthours at an average price of
$35
per megawatthour during the period of January 2020 through December 2021.
The following table presents the impact on Ameren Missouri and Ameren Illinois of related-party transactions for the
three months ended March 31, 2019
and
2018
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Agreement
|
Income Statement
Line Item
|
|
|
Ameren
Missouri
|
|
Ameren
Illinois
|
|
Ameren Missouri power supply
|
Operating Revenues
|
2019
|
$
|
(b)
|
|
$
|
(a)
|
|
|
agreements with Ameren Illinois
|
|
2018
|
|
3
|
|
|
(a)
|
|
|
Ameren Missouri and Ameren Illinois
|
Operating Revenues
|
2019
|
|
7
|
|
|
1
|
|
|
rent and facility services
|
|
2018
|
|
5
|
|
|
1
|
|
|
Ameren Missouri and Ameren Illinois
|
Operating Revenues
|
2019
|
|
(b)
|
|
|
(b)
|
|
|
miscellaneous support services
|
|
2018
|
|
(b)
|
|
|
(b)
|
|
|
Total Operating Revenues
|
|
2019
|
$
|
7
|
|
$
|
1
|
|
|
|
|
2018
|
|
8
|
|
|
1
|
|
|
Ameren Illinois power supply
|
Purchased Power
|
2019
|
$
|
(a)
|
|
$
|
(b)
|
|
|
agreements with Ameren Missouri
|
|
2018
|
|
(a)
|
|
|
3
|
|
|
Ameren Illinois transmission
|
Purchased Power
|
2019
|
|
(a)
|
|
|
(b)
|
|
|
services with ATXI
|
|
2018
|
|
(a)
|
|
|
(b)
|
|
|
Total Purchased Power
|
|
2019
|
$
|
(a)
|
|
$
|
(b)
|
|
|
|
|
2018
|
|
(a)
|
|
|
3
|
|
|
Ameren Missouri and Ameren Illinois
|
Other Operations and Maintenance
|
2019
|
$
|
(b)
|
|
$
|
1
|
|
|
rent and facility services
|
|
2018
|
|
(b)
|
|
|
2
|
|
|
Ameren Services support services
|
Other Operations and Maintenance
|
2019
|
|
32
|
|
|
30
|
|
|
agreement
|
|
2018
|
|
33
|
|
|
30
|
|
|
Total Other Operations and Maintenance
|
|
2019
|
$
|
32
|
|
$
|
31
|
|
|
|
|
2018
|
|
33
|
|
|
32
|
|
|
Money pool borrowings (advances)
|
Interest Charges/ Other Income, Net
|
2019
|
$
|
—
|
|
$
|
—
|
|
|
|
|
2018
|
|
(b)
|
|
|
(b)
|
|
|
|
|
|
(b)
|
Amount less than $1 million.
|
NOTE 9 – 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 in this report and in the Form 10-K, will not have a material adverse effect on our results of operations, financial position, or liquidity.
Reference is made to Note 1 – Summary of Significant Accounting Policies, Note 2 – Rate and Regulatory Matters, Note 13 – Related-party Transactions, and Note 14 – Commitments and Contingencies under Part II, Item 8, of the Form 10-K. See also Note 1 – Summary of Significant Accounting Policies, Note 2 – Rate and Regulatory Matters, Note 8 – Related-party Transactions, and Note 10 – Callaway Energy Center of this report.
Other Obligations
To supply a portion of the fuel requirements of Ameren Missouri’s energy centers, Ameren Missouri has entered into various long-term commitments for the procurement of coal, natural gas, nuclear fuel, and methane gas. Ameren Missouri and Ameren Illinois also have entered into various long-term commitments for purchased power and natural gas for distribution. The table below presents our estimated minimum fuel, purchased power, and other commitments at
March 31, 2019
. Ameren’s and Ameren Illinois’ purchased power commitments include the Ameren Illinois agreements entered into as part of the IPA-administered power procurement process. Included in the Other column are minimum purchase commitments under contracts for equipment, design and construction, and meter reading services, among other agreements, at
March 31, 2019
.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal
|
|
Natural
Gas
(a)
|
|
Nuclear
Fuel
|
|
Purchased
Power
(b)(c)
|
|
Methane
Gas
|
|
Other
|
|
Total
|
|
Ameren:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
$
|
279
|
|
|
$
|
154
|
|
|
$
|
25
|
|
|
$
|
88
|
|
(d)
|
$
|
2
|
|
|
$
|
52
|
|
|
$
|
600
|
|
|
2020
|
160
|
|
|
158
|
|
|
43
|
|
|
54
|
|
|
3
|
|
|
42
|
|
|
460
|
|
|
2021
|
121
|
|
|
85
|
|
|
58
|
|
|
10
|
|
|
3
|
|
|
30
|
|
|
307
|
|
|
2022
|
72
|
|
|
32
|
|
|
13
|
|
|
—
|
|
|
3
|
|
|
26
|
|
|
146
|
|
|
2023
|
—
|
|
|
8
|
|
|
41
|
|
|
—
|
|
|
3
|
|
|
29
|
|
|
81
|
|
|
Thereafter
|
—
|
|
|
34
|
|
|
29
|
|
|
—
|
|
|
27
|
|
|
71
|
|
|
161
|
|
|
Total
|
$
|
632
|
|
|
$
|
471
|
|
|
$
|
209
|
|
|
$
|
152
|
|
|
$
|
41
|
|
|
$
|
250
|
|
|
$
|
1,755
|
|
|
Ameren Missouri:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
$
|
279
|
|
|
$
|
33
|
|
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
39
|
|
|
$
|
378
|
|
|
2020
|
160
|
|
|
34
|
|
|
43
|
|
|
—
|
|
|
3
|
|
|
29
|
|
|
269
|
|
|
2021
|
121
|
|
|
16
|
|
|
58
|
|
|
—
|
|
|
3
|
|
|
25
|
|
|
223
|
|
|
2022
|
72
|
|
|
5
|
|
|
13
|
|
|
—
|
|
|
3
|
|
|
26
|
|
|
119
|
|
|
2023
|
—
|
|
|
5
|
|
|
41
|
|
|
—
|
|
|
3
|
|
|
29
|
|
|
78
|
|
|
Thereafter
|
—
|
|
|
13
|
|
|
29
|
|
|
—
|
|
|
27
|
|
|
55
|
|
|
124
|
|
|
Total
|
$
|
632
|
|
|
$
|
106
|
|
|
$
|
209
|
|
|
$
|
—
|
|
|
$
|
41
|
|
|
$
|
203
|
|
|
$
|
1,191
|
|
|
Ameren Illinois:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
$
|
—
|
|
|
$
|
121
|
|
|
$
|
—
|
|
|
$
|
88
|
|
(d)
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
214
|
|
|
2020
|
—
|
|
|
124
|
|
|
—
|
|
|
54
|
|
|
—
|
|
|
4
|
|
|
182
|
|
|
2021
|
—
|
|
|
69
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
79
|
|
|
2022
|
—
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
2023
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
Thereafter
|
—
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
Total
|
$
|
—
|
|
|
$
|
365
|
|
|
$
|
—
|
|
|
$
|
152
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
526
|
|
|
|
|
|
(a)
|
Includes amounts for generation and for distribution.
|
|
|
|
|
(b)
|
The purchased power amounts for Ameren and Ameren Illinois exclude agreements for renewable energy credits through 2034 with various renewable energy suppliers due to the contingent nature of the payment amounts.
|
|
|
|
|
(c)
|
The purchased power amounts for Ameren and Ameren Missouri exclude a
102
-megawatt power purchase agreement with a wind farm operator, which expires in 2024, due to the contingent nature of the payment amounts.
|
|
|
|
|
(d)
|
In January 2018, as required by the FEJA, Ameren Illinois entered into 10-year agreements to acquire zero emission credits. Annual zero emission credit commitment amounts will be published by the IPA each May prior to the start of the subsequent planning year. The amounts above reflect Ameren Illinois’ commitment to acquire approximately
$10 million
of zero emission credits through May 2019.
|
In April 2019, Ameren Illinois conducted procurement events, administered by the IPA, to purchase energy products through May 2022. In the April 2019 procurement event, Ameren Illinois contracted to purchase
3,704,000
megawatthours of energy products for
$108 million
from June 2019 through May 2022. See Note 8 – Related-party Transactions for additional information regarding energy product agreements between Ameren Missouri and Ameren Illinois as a result of the April procurement event.
Environmental Matters
We are subject to various environmental laws, including statutes and regulations, enforced by federal, state, and local authorities. The development and operation of electric generation, transmission, and distribution facilities and natural gas storage, transmission, and distribution facilities can trigger compliance obligations with respect to environmental laws. These laws address emissions, discharges to water, water intake, impacts to air, land, and water, and chemical and waste handling. 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.
The EPA has promulgated environmental regulations that have a significant impact on the electric utility industry. Over time, compliance with these regulations could be costly for Ameren Missouri, which operates coal-fired power plants.
As of December 31, 2018, Ameren Missouri’s fossil fuel-fired energy centers represented
16%
and
32%
of Ameren’s and Ameren Missouri’s rate base, respectively. Regulations that apply to air emissions from 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 SO
2
, particulate matter, NO
x
,
mercury, toxic metals, and acid gases, and CO
2
emissions from new power plants. Water intake and discharges from power plants are regulated under the Clean Water Act. Such regulation could require modifications to water intake structures or more stringent limitations on wastewater discharges at Ameren Missouri’s energy centers, either of which could result in significant capital expenditures. The management and disposal of coal ash is regulated under the CCR rule, which will require the closure of surface impoundments and the installations of dry ash handling systems at several of Ameren Missouri’s energy centers. The individual or combined effects of existing 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
$300 million
to
$400 million
from 2019 through 2023 in order to comply with existing environmental regulations. Additional environmental controls beyond 2023 could be required. This estimate of capital expenditures includes expenditures required by the CCR regulations, by the Clean Water Act rule applicable to cooling water intake structures at existing power plants, and by effluent limitation guidelines applicable to steam electric generating units, all of which are discussed below. Ameren Missouri’s current plan for compliance with existing air emission regulations includes burning ultra-low-sulfur coal and installing new or optimizing existing pollution control equipment. The actual amount of capital expenditures required to comply with existing environmental regulations may vary substantially from the above estimate because of uncertainty as to whether the EPA will substantially revise regulatory obligations, exactly which compliance strategies will be used and their ultimate cost, 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.
Clean Air Act
Federal and state laws, including CSAPR, regulate emissions of SO
2
and NO
x
through emission source reductions and the use and retirement of emission allowances. The first phase of the CSAPR emission reduction requirements became effective in 2015. The second phase of emission reduction requirements, which were revised by the EPA in 2016, became effective in 2017; additional emission reduction requirements may apply in subsequent years. To achieve compliance with the CSAPR, Ameren Missouri burns ultra-low-sulfur coal, operates
two
scrubbers at its Sioux energy center, and optimizes other existing pollution control equipment. Ameren Missouri expects to incur additional costs to lower its emissions at one or more of its energy centers to comply with the CSAPR in future years. These higher costs are expected to be recovered from customers through the FAC or higher base rates.
CO
2
Emissions Standards
In 2015, the EPA issued the Clean Power Plan, which would have established CO
2
emissions standards applicable to existing power plants. The United States Supreme Court stayed the rule in February 2016, pending various legal challenges. In August 2018, the EPA proposed to repeal and replace the Clean Power Plan with a proposed new rule known as the Affordable Clean Energy Rule, which establishes emission guidelines for states to follow in developing plans to limit CO
2
emissions from power plants. The EPA proposes to use certain efficiency measures as the best system of emission reduction for coal-fired power plants. The EPA is expected to finalize the Affordable Clean Energy rule in the first half of 2019. We cannot predict the outcome of EPA’s rulemaking or the outcome of legal challenges related to such rulemaking.
NSR and Clean Air Litigation
In January 2011, the 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. The complaint, as amended in October 2013, alleged that in performing projects at its Rush Island coal-fired energy center in 2007 and 2010, Ameren Missouri violated provisions of the Clean Air Act and Missouri law. The litigation has been divided into two phases: liability and remedy. In the first phase, in January 2017, the district court issued a liability ruling that the projects violated provisions of the Clean Air Act and Missouri law. In the second phase, the district court will determine the actions required to remedy the violations found in the liability phase. The EPA previously withdrew all claims for penalties and fines. A trial on the scope of the appropriate remedy occurred in April 2019, and a final ruling from the court is expected by the end of 2019. Once the court issues its final order and judgment, Ameren Missouri will seek a stay of that order while it seeks an appeal of the liability ruling to the United States Court of Appeals for the Eighth Circuit.
The ultimate resolution of this matter could have a material adverse effect on the results of operations, financial position, and liquidity of Ameren and Ameren Missouri. Among other things and subject to economic and regulatory considerations, resolution of this matter could result in increased capital expenditures for the installation of pollution control equipment, as well as increased operations and maintenance expenses. We are unable to predict the ultimate resolution of this matter or the costs that might be incurred.
Clean Water Act
In July 2018, the United States Court of Appeals for the Second Circuit upheld the EPA’s Section 316(b) Rule applicable to cooling water intake structures at existing power plants. The rule requires a case-by-case evaluation and plan for reducing 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. The rule will be implemented by Ameren Missouri during the permit renewal process of each energy center’s water discharge permit, which is expected to be completed by 2023.
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 that are based on the effectiveness of available control technology. The EPA’s 2015 rule prohibits effluent discharges of certain waste streams and imposes more stringent limitations on certain water discharges from power plants. In September 2017, the EPA published a rule that postponed the compliance dates by two years for the limitations applicable to two specific waste streams so that it could potentially revise those standards. Ameren Missouri is in the process of constructing wastewater treatment facilities that meet the limitations in these guidelines at three of its energy centers.
CCR Management
In 2015, the EPA issued the CCR rule, which established regulations regarding the management and disposal of CCR from coal-fired energy centers. These regulations affect CCR disposal and handling costs at Ameren Missouri’s energy centers. Ameren Missouri is in the process of closing its surface impoundments and anticipates the last of such CCR storage facilities to be closed by 2023. In July 2018, the EPA issued revisions to the CCR rule and indicated that additional revisions to the CCR rule are likely. Ameren and Ameren Missouri have AROs of
$131 million
recorded on their respective balance sheets as of
March 31, 2019
, associated with CCR storage facilities that reflect the regulations issued in 2015. Ameren Missouri estimates it will need to make capital expenditures of
$150 million
to
$200 million
from 2019 through 2023 to implement its CCR management compliance plan, which includes installation of dry ash handling systems, waste water treatment facilities, and groundwater monitoring equipment.
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. Ameren Missouri and Ameren Illinois have each been identified by federal or state governments as a potentially responsible party at several contaminated sites.
As of
March 31, 2019
, Ameren Illinois has remediated the majority of the
44
former MGP sites in Illinois it owned or for which it was otherwise responsible. Ameren Illinois estimates it could substantially conclude remediation efforts at its 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. Costs are subject to annual prudence review by the ICC. As of
March 31, 2019
, Ameren Illinois estimated the obligation related to these former MGP sites at
$145 million
to
$215 million
. Ameren and Ameren Illinois recorded a liability of
$145 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 ultimate 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 practices will result in future environmental commitments or will affect our results of operations, financial position, or liquidity.
NOTE 10 – CALLAWAY 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 through the immediate dismantlement method and removed from service. Ameren and Ameren Missouri have recorded an ARO for the Callaway energy center decommissioning costs at fair value, which represents the present value of estimated future cash outflows. Annual decommissioning costs of
$7 million
are included in the costs used to establish electric rates for Ameren Missouri’s customers.
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 related regulatory liability. If the assumed return on trust assets is not earned, Ameren Missouri believes that it is probable that any such earnings deficiency will be recovered in rates.
Insurance
The following table presents insurance coverage at Ameren Missouri’s Callaway energy center as of April 1, 2019. The property coverage and the nuclear liability coverage renewal dates are April 1 and January 1, respectively, of each year. Both coverages were renewed in 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
Type and Source of Coverage
|
Maximum Coverages
|
|
Maximum Assessments
for Single Incidents
|
|
|
Public liability and nuclear worker liability:
|
|
|
|
|
|
American Nuclear Insurers
|
$
|
450
|
|
|
$
|
—
|
|
|
|
Pool participation
|
13,623
|
|
(a)
|
138
|
|
(b)
|
|
|
$
|
14,073
|
|
(c)
|
$
|
138
|
|
|
|
Property damage:
|
|
|
|
|
|
NEIL and EMANI
|
$
|
3,200
|
|
(d)
|
$
|
28
|
|
(e)
|
|
Replacement power:
|
|
|
|
|
|
NEIL
|
$
|
490
|
|
(f)
|
$
|
7
|
|
(e)
|
|
|
|
|
(a)
|
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.
|
|
|
|
|
(b)
|
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.
|
|
|
|
|
(c)
|
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 reactors.
|
|
|
|
|
(d)
|
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.
|
|
|
|
|
(e)
|
All NEIL insured plants could be subject to assessments should losses exceed the accumulated funds from NEIL.
|
|
|
|
|
(f)
|
Provides replacement power cost insurance in the event of a prolonged accidental outage. Weekly indemnity up to
$4.5 million
for 52 weeks, which commences after the first twelve 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 nuclear reactors cover this exposure through a combination of private insurance and mandatory participation in a financial protection pool, as established by the Price-Anderson Act.
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. 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 11 – RETIREMENT BENEFITS
The following table presents the components of the net periodic benefit cost (income) incurred for Ameren’s pension and postretirement benefit plans for the
three months ended March 31, 2019
and
2018
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
|
|
Three Months
|
|
Three Months
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Service cost
(a)
|
$
|
22
|
|
|
$
|
25
|
|
|
$
|
4
|
|
|
$
|
5
|
|
|
Non-service cost components:
|
|
|
|
|
|
|
|
|
Interest cost
|
47
|
|
|
42
|
|
|
11
|
|
|
11
|
|
|
Expected return on plan assets
|
(69
|
)
|
|
(69
|
)
|
|
(19
|
)
|
|
(19
|
)
|
|
Amortization of:
|
|
|
|
|
|
|
|
|
Prior service benefit
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
Actuarial loss (gain)
|
6
|
|
|
16
|
|
|
(4
|
)
|
|
—
|
|
|
Total non-service cost components
(b)
|
$
|
(16
|
)
|
|
$
|
(11
|
)
|
|
$
|
(13
|
)
|
|
$
|
(9
|
)
|
|
Net periodic benefit cost (income)
|
$
|
6
|
|
|
$
|
14
|
|
|
$
|
(9
|
)
|
|
$
|
(4
|
)
|
|
|
|
|
(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 statement of income. See Note 5 – Other Income, Net for additional information.
|
Ameren Missouri and Ameren Illinois are responsible for their respective shares of Ameren’s pension and postretirement costs. The following table presents the respective share of net periodic pension and other postretirement benefit costs (income) incurred for the
three months ended March 31, 2019
and
2018
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
|
|
Three Months
|
|
Three Months
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Ameren Missouri
(a)
|
$
|
1
|
|
|
$
|
5
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
Ameren Illinois
|
5
|
|
|
9
|
|
|
(7
|
)
|
|
(4
|
)
|
|
Ameren
(a)
|
$
|
6
|
|
|
$
|
14
|
|
|
$
|
(9
|
)
|
|
$
|
(4
|
)
|
|
|
|
|
(a)
|
Does not include the impact of the regulatory tracking mechanism for the difference between the level of pension and postretirement benefit costs incurred by Ameren Missouri under GAAP and the level of such costs included in rates.
|
NOTE 12 – INCOME TAXES
The following table presents a reconciliation of the federal statutory corporate income tax rate to the effective income tax rate for the
three months ended March 31, 2019
and
2018
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ameren
|
|
Ameren Missouri
|
|
Ameren Illinois
|
|
Three Months
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Federal statutory corporate income tax rate:
|
21%
|
|
21%
|
|
21%
|
|
21%
|
|
21%
|
|
21%
|
|
Increases (decreases) from:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of excess deferred taxes
|
(7)
|
|
(2)
|
(a)
|
(12)
|
|
—
|
(a)
|
(3)
|
|
(3)
|
|
Other depreciation differences
|
—
|
|
—
|
|
—
|
|
1
|
|
—
|
|
—
|
|
Amortization of deferred investment tax credit
|
(1)
|
|
(1)
|
|
(1)
|
|
(1)
|
|
—
|
|
—
|
|
State tax
|
6
|
|
7
|
|
4
|
|
4
|
|
7
|
|
7
|
|
Stock-based compensation
|
(7)
|
|
(3)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Other
|
—
|
|
—
|
|
(3)
|
|
—
|
|
—
|
|
—
|
|
Effective income tax rate
|
12%
|
|
22%
|
|
9%
|
|
25%
|
|
25%
|
|
25%
|
|
|
|
|
(a)
|
Based on an order by the MoPSC in July 2018, Ameren Missouri began amortizing excess deferred taxes in August 2018.
|
NOTE 13 – 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
March 31, 2019
, and
December 31, 2018
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
|
December 31, 2018
|
|
Ameren
|
|
Ameren
Missouri
|
|
Ameren
Illinois
|
|
|
Ameren
|
|
Ameren
Missouri
|
|
Ameren
Illinois
|
|
Cash and cash equivalents
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Restricted cash included in “Other current assets”
|
16
|
|
|
5
|
|
|
6
|
|
|
|
13
|
|
|
4
|
|
|
6
|
|
|
Restricted cash included in “Other assets”
|
87
|
|
|
—
|
|
|
87
|
|
|
|
74
|
|
|
—
|
|
|
74
|
|
|
Restricted cash included in “Nuclear decommissioning trust fund”
|
7
|
|
|
7
|
|
|
—
|
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
Total cash, cash equivalents, and restricted cash
|
$
|
118
|
|
|
$
|
12
|
|
|
$
|
93
|
|
|
|
$
|
107
|
|
|
$
|
8
|
|
|
$
|
80
|
|
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
March 31, 2019
, and
December 31, 2018
, “Other current liabilities” on Ameren’s and Ameren Illinois’ balance sheets included payables for purchased receivables of
$38 million
and
$33 million
, respectively.
For the
three months ended
March 31, 2019
and
2018
, the Ameren Companies recorded immaterial bad debt expense.
Leases
In the first quarter of 2019, we adopted authoritative accounting guidance related to leases, which affected our financial position, but did not materially affect our results of operations or liquidity. The most significant impact for us was the recognition of right-of-use assets and lease liabilities for operating leases, while the accounting for our finance leases remained substantially unchanged. Ameren and Ameren Missouri recognized right-of-use assets and offsetting lease liabilities of
$38 million
and
$36 million
at January 1, 2019, respectively, primarily related to rail car leases. The effect of the adoption was immaterial at Ameren Illinois. No adjustment to comparative periods was made. We elected the available practical expedients upon adoption.
Ameren Missouri leases rail cars under operating lease arrangements for the transportation of coal inventory to its energy centers. Although Ameren Missouri has options to renew a portion of these arrangements for up to
five years
on similar terms, the exercise of these options was not assumed in the recognition of right-of-use assets and lease obligations. For rail car leases, we account for the lease and non-lease components as a single lease component.
The operating lease expense and the cash paid for amounts included in the measurement of operating lease liabilities at Ameren and Ameren Missouri were immaterial for the
three months ended March 31, 2019
and
2018
.
The following table provides supplemental balance sheet information related to operating leases as of
March 31, 2019
:
|
|
|
|
|
|
|
|
|
|
|
|
|
Ameren
|
|
Ameren Missouri
|
|
Other assets
|
$
|
36
|
|
|
$
|
34
|
|
|
Other current liabilities
|
7
|
|
|
6
|
|
|
Other deferred credits and liabilities
|
29
|
|
|
28
|
|
|
Weighted average remaining operating lease term
|
6 years
|
|
|
6 years
|
|
|
Weighted average discount rate
(a)
|
3.6
|
%
|
|
3.6
|
%
|
|
|
|
|
(a)
|
As most of our lease agreements do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable.
|
The following table presents Ameren’s and Ameren Missouri’s remaining maturities of operating lease liabilities as of
March 31, 2019
:
|
|
|
|
|
|
|
|
|
|
|
|
|
Ameren
|
|
Ameren Missouri
|
|
2019
|
$
|
6
|
|
|
$
|
5
|
|
|
2020
|
7
|
|
|
7
|
|
|
2021
|
7
|
|
|
6
|
|
|
2022
|
6
|
|
|
5
|
|
|
2023
|
5
|
|
|
5
|
|
|
Thereafter
|
10
|
|
|
10
|
|
|
Total lease payments
|
41
|
|
|
38
|
|
|
Less imputed interest
|
5
|
|
|
4
|
|
|
Total
(a)
|
$
|
36
|
|
|
$
|
34
|
|
|
|
|
|
(a)
|
The amount of remaining maturities of operating lease liabilities under previous authoritative accounting guidance as of December 31, 2018, is materially consistent to the amount as of March 31, 2019. Maturities of certain financing arrangements, including the Peno Creek and Audrain energy centers' long-term agreements, are no longer required to be disclosed as lease-related maturities. See Note 5 - Long-Term Debt and Equity Financings under Part II, Item 8, in the Form 10-K for further information on financing arrangements.
|
Supplemental Cash Flow Information
The following table provides noncash investing activity excluded from the statements of cash flows for the
three months ended March 31, 2019
and
2018
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
March 31, 2018
|
|
Ameren
|
Ameren
Missouri
|
Ameren
Illinois
|
Ameren
|
Ameren
Missouri
|
Ameren
Illinois
|
|
Accrued capital expenditures
|
$
|
208
|
|
$
|
92
|
|
$
|
106
|
|
|
$
|
202
|
|
$
|
73
|
|
$
|
114
|
|
|
Net realized and unrealized gain (loss)
–
nuclear decommissioning trust fund
|
64
|
|
64
|
|
—
|
|
|
(11
|
)
|
(11
|
)
|
—
|
|
Asset Retirement Obligations
The following table provides a reconciliation of the beginning and ending carrying amount of AROs for the
three months ended March 31, 2019
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ameren
Missouri
|
|
Ameren
Illinois
(a)
|
|
Ameren
|
|
|
Balance at December 31, 2018
|
$
|
646
|
|
(a)
|
$
|
4
|
|
(b)
|
$
|
650
|
|
(a)
|
|
Liabilities settled
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
|
Accretion
|
6
|
|
(c)
|
—
|
|
|
6
|
|
(c)
|
|
Balance at March 31, 2019
|
$
|
649
|
|
(a)
|
$
|
4
|
|
(b)
|
$
|
653
|
|
(a)
|
|
|
|
|
(a)
|
Balance included
$23 million
in “Other current liabilities” on the balance sheet as of both
December 31, 2018
, and
March 31, 2019
.
|
|
|
|
|
(b)
|
Included in “Other deferred credits and liabilities” on the balance sheet.
|
|
|
|
|
(c)
|
Accretion expense attributable to Ameren Missouri was recorded as a decrease to regulatory liabilities.
|
Stock-based Compensation
The following table summarizes Ameren's nonvested performance share unit and restricted stock unit activity for the
three months ended March 31, 2019
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Share Units
|
|
Restricted Stock Units
|
|
|
Share Units
|
|
Weighted-average Fair Value per Share Unit
|
|
Stock Units
|
|
Weighted-average Fair Value per Stock Unit
|
|
Nonvested at January 1, 2019
(a)
|
682,811
|
|
|
$
|
56.58
|
|
|
155,253
|
|
|
$
|
57.38
|
|
|
Granted
|
288,956
|
|
|
67.42
|
|
(b)
|
124,925
|
|
|
65.23
|
|
|
Forfeitures
|
(2,228
|
)
|
|
65.06
|
|
|
(833
|
)
|
|
63.16
|
|
|
Vested and undistributed
(c)
|
(65,458
|
)
|
|
62.04
|
|
|
(14,047
|
)
|
|
61.77
|
|
|
Vested and distributed
|
(176,923
|
)
|
|
44.13
|
|
|
—
|
|
|
—
|
|
|
Nonvested at March 31, 2019
(d)
|
727,158
|
|
|
$
|
63.40
|
|
|
265,298
|
|
|
$
|
60.64
|
|
|
|
|
|
(a)
|
Does not include
619,783
vested and undistributed performance share units and
26,557
vested and undistributed restricted stock units.
|
|
|
|
|
(b)
|
Significant inputs to the Monte Carlo simulation model used to calculate the fair value of performance share units granted include Ameren’s closing common share price of
$65.23
at
December 31, 2018
, Ameren’s common stock volatility of
17%
, a volatility range for the peer group of
15%
to
25%
, and a three-year risk-free rate of
2.46%
.
|
|
|
|
|
(c)
|
Vested and undistributed units are awards that vested 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.
|
|
|
|
|
(d)
|
Does not include
333,466
vested and undistributed performance share units and
40,604
vested and undistributed restricted stock units.
|
For the
three months ended March 31, 2019
and
2018
, excess tax benefits associated with the settlement of stock-based compensation awards reduced income tax expense by
$14 million
and
$6 million
, respectively.
Deferred Compensation
As of
March 31, 2019
, and
December 31, 2018
, “Other deferred credits and liabilities” on Ameren’s balance sheet included deferred compensation obligations of
$78 million
and
$80 million
, respectively, recorded at the present value of future benefits to be paid.
Operating Revenues
As of
March 31, 2019
and
2018
, our remaining performance obligations for contracts with a term greater than one year 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.
See Note 14 – Segment Information for disaggregated revenue information.
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
three months ended March 31, 2019
and
2018
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
2019
|
|
2018
|
|
|
Ameren Missouri
|
$
|
31
|
|
|
$
|
34
|
|
|
|
Ameren Illinois
|
39
|
|
|
35
|
|
(a)
|
|
Ameren
|
$
|
70
|
|
|
$
|
69
|
|
(a)
|
|
|
|
|
(a)
|
Amounts have been adjusted from those previously reported to reflect additional excise taxes for the three months ended March 31, 2018.
|
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 period. Earnings per diluted share reflects the dilution that would occur if certain stock-based performance share units and restricted stock units were assumed to be settled. The number of performance share units and restricted stock units assumed settled was
1.5 million
for both the
three months ended March 31, 2019
and
2018
. There were no potentially dilutive securities excluded from the earnings per diluted share calculations for the
three months ended March 31, 2019
and
2018
.
NOTE 14 – 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 at 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 services 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.
The following tables present revenues, net income attributable to common shareholders, and capital expenditures by segment at Ameren and Ameren Illinois for the
three months ended March 31, 2019
and
2018
. Ameren, Ameren Missouri, and Ameren Illinois management review segment capital expenditure information rather than any individual or total asset amount.
Ameren
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
Ameren
Missouri
|
|
Ameren Illinois Electric Distribution
|
|
Ameren Illinois Natural Gas
|
|
Ameren Transmission
|
|
Other
|
|
Intersegment
Eliminations
|
|
Ameren
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenues
|
$
|
751
|
|
|
$
|
386
|
|
|
$
|
320
|
|
|
$
|
99
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,556
|
|
|
|
Intersegment revenues
|
7
|
|
|
1
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
|
Net income attributable to Ameren common shareholders
|
39
|
|
|
36
|
|
|
57
|
|
|
44
|
|
(a)
|
15
|
|
|
—
|
|
|
191
|
|
|
|
Capital expenditures
|
240
|
|
|
124
|
|
|
51
|
|
|
121
|
|
|
10
|
|
|
(2
|
)
|
|
544
|
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenues
|
$
|
784
|
|
|
$
|
399
|
|
|
$
|
311
|
|
|
$
|
91
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,585
|
|
|
|
Intersegment revenues
|
8
|
|
|
1
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
|
Net income attributable to Ameren common shareholders
|
38
|
|
|
33
|
|
|
42
|
|
|
37
|
|
(a)
|
1
|
|
|
—
|
|
|
151
|
|
|
|
Capital expenditures
|
249
|
|
|
122
|
|
|
60
|
|
|
145
|
|
|
7
|
|
|
(4
|
)
|
|
579
|
|
|
|
|
|
|
(a)
|
Ameren Transmission earnings include an allocation of financing costs from Ameren (parent).
|
Ameren Illinois
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
Ameren Illinois Electric Distribution
|
|
Ameren Illinois Natural Gas
|
|
Ameren Illinois Transmission
|
|
Intersegment
Eliminations
|
|
Ameren Illinois
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
External revenues
|
$
|
387
|
|
|
$
|
320
|
|
|
$
|
55
|
|
|
$
|
—
|
|
|
$
|
762
|
|
|
Intersegment revenues
|
—
|
|
|
—
|
|
|
15
|
|
|
(15
|
)
|
|
—
|
|
|
Net income available to common shareholder
|
36
|
|
|
57
|
|
|
27
|
|
|
—
|
|
|
120
|
|
|
Capital expenditures
|
124
|
|
|
51
|
|
|
92
|
|
|
—
|
|
|
267
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
External revenues
|
$
|
400
|
|
|
$
|
311
|
|
|
$
|
49
|
|
|
$
|
—
|
|
|
$
|
760
|
|
|
Intersegment revenues
|
—
|
|
|
—
|
|
|
13
|
|
|
(13
|
)
|
|
—
|
|
|
Net income available to common shareholder
|
33
|
|
|
42
|
|
|
20
|
|
|
—
|
|
|
95
|
|
|
Capital expenditures
|
122
|
|
|
60
|
|
|
118
|
|
|
—
|
|
|
300
|
|
The following tables present disaggregated revenues by segment at Ameren and Ameren Illinois for the
three months ended March 31, 2019
and
2018
. 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
Ameren
Missouri
|
|
Ameren Illinois Electric Distribution
|
|
Ameren Illinois Natural Gas
|
|
Ameren Transmission
|
|
Other
|
|
Intersegment
Eliminations
|
|
Ameren
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
$
|
312
|
|
|
$
|
217
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
529
|
|
|
|
Commercial
|
239
|
|
|
123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
362
|
|
|
|
Industrial
|
55
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89
|
|
|
|
Other
|
98
|
|
|
13
|
|
|
—
|
|
|
114
|
|
|
—
|
|
|
(23
|
)
|
|
202
|
|
|
|
Total electric revenues
|
$
|
704
|
|
|
$
|
387
|
|
|
$
|
—
|
|
|
$
|
114
|
|
|
$
|
—
|
|
|
$
|
(23
|
)
|
|
$
|
1,182
|
|
|
|
Residential
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
246
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
284
|
|
|
|
Commercial
|
16
|
|
|
—
|
|
|
65
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81
|
|
|
|
Industrial
|
2
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
|
Other
|
(2
|
)
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
|
Total gas revenues
|
$
|
54
|
|
|
$
|
—
|
|
|
$
|
320
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
374
|
|
|
|
Total revenues
(a)
|
$
|
758
|
|
|
$
|
387
|
|
|
$
|
320
|
|
|
$
|
114
|
|
|
$
|
—
|
|
|
$
|
(23
|
)
|
|
$
|
1,556
|
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
$
|
332
|
|
|
$
|
219
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
551
|
|
|
|
Commercial
|
252
|
|
|
124
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
376
|
|
|
|
Industrial
|
61
|
|
|
35
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96
|
|
|
|
Other
|
96
|
|
|
22
|
|
|
—
|
|
|
104
|
|
|
—
|
|
|
(22
|
)
|
|
200
|
|
|
|
Total electric revenues
|
$
|
741
|
|
|
$
|
400
|
|
|
$
|
—
|
|
|
$
|
104
|
|
|
$
|
—
|
|
|
$
|
(22
|
)
|
|
$
|
1,223
|
|
|
|
Residential
|
$
|
41
|
|
|
$
|
—
|
|
|
$
|
243
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
284
|
|
|
|
Commercial
|
16
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|
|
Industrial
|
2
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
|
Other
|
(8
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
|
Total gas revenues
|
$
|
51
|
|
|
$
|
—
|
|
|
$
|
311
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
362
|
|
|
|
Total revenues
(a)
|
$
|
792
|
|
|
$
|
400
|
|
|
$
|
311
|
|
|
$
|
104
|
|
|
$
|
—
|
|
|
$
|
(22
|
)
|
|
$
|
1,585
|
|
|
|
|
|
|
(a)
|
The following table presents increases/(decreases) in revenues from alternative revenue programs and other revenues not from contracts with customers for the
three months ended March 31, 2019
and
2018
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
Ameren
Missouri
|
|
Ameren Illinois Electric Distribution
|
|
Ameren Illinois Natural Gas
|
|
Ameren Transmission
|
|
Ameren
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
Revenues from alternative revenue programs
|
$
|
15
|
|
|
$
|
22
|
|
|
$
|
(3
|
)
|
|
$
|
(5
|
)
|
|
$
|
29
|
|
|
Other revenues not from contracts with customers
|
5
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
9
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
Revenues from alternative revenue programs
|
$
|
(4
|
)
|
|
$
|
31
|
|
|
$
|
(3
|
)
|
|
$
|
(4
|
)
|
|
$
|
20
|
|
|
Other revenues not from contracts with customers
|
14
|
|
|
10
|
|
|
1
|
|
|
—
|
|
|
25
|
|
Ameren Illinois
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
Ameren Illinois Electric Distribution
|
|
Ameren Illinois Natural Gas
|
|
Ameren Illinois Transmission
|
|
Intersegment Eliminations
|
|
Total Ameren Illinois
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
$
|
217
|
|
|
$
|
246
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
463
|
|
|
|
Commercial
|
123
|
|
|
65
|
|
|
—
|
|
|
—
|
|
|
188
|
|
|
|
Industrial
|
34
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
|
Other
|
13
|
|
|
5
|
|
|
70
|
|
|
(15
|
)
|
|
73
|
|
|
|
Total revenues
(a)
|
$
|
387
|
|
|
$
|
320
|
|
|
$
|
70
|
|
|
$
|
(15
|
)
|
|
$
|
762
|
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
$
|
219
|
|
|
$
|
243
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
462
|
|
|
|
Commercial
|
124
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
191
|
|
|
|
Industrial
|
35
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|
|
Other
|
22
|
|
|
(5
|
)
|
|
62
|
|
|
(13
|
)
|
|
66
|
|
|
|
Total revenues
(a)
|
$
|
400
|
|
|
$
|
311
|
|
|
$
|
62
|
|
|
$
|
(13
|
)
|
|
$
|
760
|
|
|
|
|
|
|
(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
three months ended March 31, 2019
and
2018
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
Ameren Illinois Electric Distribution
|
|
Ameren Illinois Natural Gas
|
|
Ameren Illinois Transmission
|
|
Ameren Illinois
|
|
2019
|
|
|
|
|
|
|
|
|
Revenues from alternative revenue programs
|
$
|
22
|
|
|
$
|
(3
|
)
|
|
$
|
(5
|
)
|
|
$
|
14
|
|
|
Other revenues not from contracts with customers
|
3
|
|
|
1
|
|
|
—
|
|
|
4
|
|
|
2018
|
|
|
|
|
|
|
|
|
Revenues from alternative revenue programs
|
$
|
31
|
|
|
$
|
(3
|
)
|
|
$
|
(4
|
)
|
|
$
|
24
|
|
|
Other revenues not from contracts with customers
|
10
|
|
|
1
|
|
|
—
|
|
|
11
|
|
