Ameren Corporation

Company Overview

Business Model: Ameren Corporation is a public utility holding company that, through its subsidiaries Ameren Missouri, Ameren Illinois, and ATXI, operates rate-regulated electric generation, transmission, and distribution businesses, and natural gas distribution businesses. The company's core value proposition is providing essential electric and natural gas utility services to customers in central and eastern Missouri and central and southern Illinois. Revenue is primarily generated through tariff-based rates approved by state and federal regulatory commissions (MoPSC, ICC, and FERC).

Market Position: Ameren Missouri is the largest electric utility in Missouri, serving 1.3 million electric customers and 0.1 million natural gas customers across a 24,000-square-mile area. Ameren Illinois serves 1.2 million electric customers and 0.8 million natural gas customers in a 43,700-square-mile area. The company operates an integrated transmission system and is a transmission-owning member of MISO. Its rate-regulated business model provides a stable earnings profile, with allowed returns on equity ranging from 8.72% to 10.48% for its various segments.

Recent Strategic Developments:

• Clean Energy Transition: Ameren Corporation is targeting net-zero carbon emissions by 2045, with interim goals of a 60% reduction by 2030 and 85% reduction by 2040 from 2005 levels. This includes the retirement of the Rush Island Energy Center in October 2024 and plans to retire all coal-fired energy centers by 2042.
• Significant Renewable and Natural Gas Investments: Ameren Missouri's 2025 Change to the 2023 Preferred Resource Plan (expected February 2025 filing) outlines substantial additions: 1,600 MWs natural gas-fired simple-cycle generation by 2030 (including 800-MW Castle Bluff Natural Gas Project), 2,100 MWs natural gas-fired combined-cycle generation by 2035, 3,200 MWs renewable generation by 2030 (including 900 MWs solar), 1,000 MWs battery storage by 2030, and 1,500 MWs nuclear generation by 2040.
• Grid Modernization: Ameren Missouri's Smart Energy Plan involves upgrading Missouri’s electric grid through at least 2029, with $16.2 billion in capital investments over 2025-2029. Ameren Illinois' revised Grid Plan for 2024-2027 was approved by the ICC in December 2024.
• Transmission Expansion: Ameren Corporation was awarded projects estimated at $1.8 billion in the first tranche of MISO long-range transmission planning, with substation upgrades beginning in May 2024. An additional $1.3 billion in projects were assigned in the first set of second tranche projects.
• Regulatory Rate Adjustments: Ameren Illinois' electric distribution services are now under a Multi-Year Rate Plan (MYRP) for 2024-2027, with approved revenue requirements increasing annually. Ameren Missouri has ongoing electric and natural gas rate reviews, with decisions expected in 2025.

Geographic Footprint: Ameren Corporation's primary operational regions are central and eastern Missouri and central and southern Illinois.

• Missouri: Ameren Missouri provides electric and natural gas service to a 24,000-square-mile area, including Greater St. Louis.
• Illinois: Ameren Illinois provides electric transmission, electric distribution, and natural gas distribution services to a 43,700-square-mile area. ATXI operates a FERC rate-regulated electric transmission business within the MISO region, primarily in Illinois.

Financial Performance

Revenue Analysis

Profitability Metrics (2024):

• Gross Margin: 73.75%
• Operating Margin: 19.89%
• Net Margin: 15.51%

Investment in Growth:

• R&D Expenditure: Not explicitly disclosed as a separate line item.
• Capital Expenditures: $4,319 million in 2024, up from $3,597 million in 2023.
• Strategic Investments: Ameren Missouri acquired Cass County, Boomtown, and Huck Finn solar projects in 2024, placing $1 billion of assets in service. The company projects cumulative capital expenditures of $25.2 billion to $27.4 billion from 2025 through 2029, with a midpoint of $26.3 billion. This includes approximately $1 billion for EPA compliance.

Business Segment Analysis

Ameren Missouri

Financial Performance:

• Revenue: $3,993 million (+3.47% YoY)
• Operating Margin: 13.10%
• Key Growth Drivers: Higher electric base rates from a June 2023 MoPSC order, increased retail electric sales volumes, and favorable off-system sales and capacity revenues. The segment also benefited from increased capital investment, including the acquisition of solar projects.

Product Portfolio:

• Rate-regulated electric generation, transmission, and distribution.
• Rate-regulated natural gas distribution.
• Power Generation: Diverse portfolio including coal (50.5% of energy supply in 2024), nuclear (29.1%), hydroelectric (3.5%), wind (4.4%), natural gas (1.0%), methane gas, and solar.
• New product launches or major updates: Acquired Cass County, Boomtown, and Huck Finn solar projects in 2024. MoPSC approved CCNs for Split Rail, Vandalia, Bowling Green, and Cass County solar projects, and the Castle Bluff Natural Gas Project in 2024.

Market Dynamics:

• Largest electric utility in Missouri, serving 1.3 million electric and 0.1 million natural gas customers.
• Subject to MoPSC regulation for electric and natural gas rates.
• Strategic focus on clean energy transition, with plans to retire all coal-fired energy centers by 2042 and significant investments in natural gas, renewable, battery storage, and nuclear generation.

Ameren Illinois Electric Distribution

Financial Performance:

• Revenue: $2,089 million (-5.82% YoY)
• Operating Margin: 13.69%
• Key Growth Drivers: Favorable impact from other cost recovery mechanisms and customer energy-efficiency program investments (including a $4 million ROE increase from 2023 energy savings goals).
• Key Headwinds: Decreased revenues due to cost recovery mechanisms offsetting fuel and purchased power, and an electric deferred income tax adjustment. Lower recognized ROE under the MYRP also impacted performance.

Product Portfolio:

• Rate-regulated electric distribution services.
• Customer energy-efficiency programs.
• Smart meters installed for nearly all electric customers.

Market Dynamics:

• Serves 1.2 million electric customers in central and southern Illinois.
• Regulated by the ICC under a Multi-Year Rate Plan (MYRP) for 2024-2027, which includes performance metrics that can affect ROE.
• Electric distribution revenues are decoupled from sales volumes.

Ameren Illinois Natural Gas

Financial Performance:

• Revenue: $938 million (+4.57% YoY)
• Operating Margin: 25.69%
• Key Growth Drivers: Higher natural gas base rates from a November 2023 ICC order and other cost recovery mechanisms.
• Key Headwinds: Offset by cost recovery mechanisms for natural gas purchased for resale.

Product Portfolio:

• Rate-regulated natural gas distribution services.
• Customer energy-efficiency programs.
• Smart meters installed for nearly all natural gas customers.

Market Dynamics:

• Serves 0.8 million natural gas customers in central and southern Illinois.
• Regulated by the ICC, with revenues for residential and small nonresidential customers decoupled from sales volumes.
• Natural gas supply costs are passed to customers under Purchased Gas Adjustment (PGA) clauses.

Ameren Transmission

Financial Performance:

• Revenue: $781 million (+15.36% YoY)
• Operating Margin: 68.50%
• Key Growth Drivers: Higher recoverable expenses, increased capital investment (15% rate base increase), and increased facility rental revenues from ATXI’s operations control center (placed in service December 2023).
• Key Headwinds: Decrease in allowed base ROE due to an October 2024 FERC order.

Product Portfolio:

• Rate-regulated electric transmission services.
• Primarily consists of the aggregated electric transmission businesses of Ameren Illinois and ATXI.

Market Dynamics:

• Operates a FERC rate-regulated electric transmission business in the MISO.
• Transmission rates are updated annually and determined by formula ratemaking, with a 10.48% allowed ROE including a 50-basis-point incentive adder for RTO participation.
• Significant investment in MISO long-range transmission planning projects, with $1.8 billion in first tranche projects and $1.3 billion in first set of second tranche projects assigned to Ameren Corporation.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: Not explicitly stated as share repurchases. Ameren Corporation issued 2.9 million shares of common stock for $233 million under its ATM program in 2024.
• Dividend Payments: $714 million ($2.68 per share) in 2024, up from $662 million ($2.52 per share) in 2023. The board increased the quarterly common stock dividend to 71 cents per share ($2.84 annualized) in February 2025.
• Future Capital Return Commitments: Ameren Corporation expects a dividend payout ratio of 55% to 65% of earnings.

Balance Sheet Position:

• Cash and Equivalents: $7 million (consolidated Ameren Corporation) as of December 31, 2024.
• Total Debt: $18,405 million (long-term debt, net of $17,262 million + short-term debt of $1,143 million) as of December 31, 2024.
• Net Cash Position: $-18,398 million (net debt position) as of December 31, 2024.
• Credit Rating: As of the report date, Ameren Corporation has an issuer/corporate credit rating of Baa1 from Moody’s and BBB+ from S&P. Ameren Missouri has Baa1 (Moody's) and BBB+ (S&P). Ameren Illinois has A3 (Moody's) and BBB+ (S&P). ATXI has A2 (Moody's).
• Debt Maturity Profile: Aggregate maturities of long-term debt are $317 million in 2025, $974 million in 2026, $974 million in 2027, $966 million in 2028, and $1,207 million in 2029.

Cash Flow Generation:

• Operating Cash Flow: $2,763 million in 2024, an increase of $199 million from $2,564 million in 2023.
• Free Cash Flow: $-1,556 million in 2024 (Operating Cash Flow of $2,763 million minus Capital Expenditures of $4,319 million).
• Cash Conversion Metrics: Not explicitly detailed in the provided text beyond the cash flow statements.

Operational Excellence

Production & Service Model: Ameren Corporation operates a rate-regulated utility model, providing electric generation, transmission, and distribution, and natural gas distribution services.

• Electric Generation: Ameren Missouri owns a diverse portfolio of energy centers (coal, nuclear, natural gas, hydroelectric, wind, solar, methane gas). The Callaway Energy Center is a nuclear facility requiring refueling every 18 months.
• Transmission & Distribution: Ameren Corporation owns an integrated transmission system and operates two MISO balancing authority areas (AMMO and AMIL). Smart meters have been installed for nearly all electric and natural gas customers.
• Natural Gas Distribution: Ameren Missouri and Ameren Illinois manage natural gas supply portfolios including firm supply agreements, transportation, and storage capacity.

Supply Chain Architecture: Key Suppliers & Partners:

• Coal Suppliers: Approximately 97% of coal is purchased from the Powder River Basin, with 3% from the Illinois Basin. Ameren Missouri has agreements with multiple suppliers for low-sulfur coal through 2029.
• Nuclear Fuel Supplier: The Callaway Energy Center relies on a single NRC-licensed supplier for fuel assemblies. Inventories and supply contracts are sufficient through the Spring 2028 refueling.
• Natural Gas Pipelines: Primarily uses Panhandle Eastern Pipe Line Company, Trunkline Gas Company, Natural Gas Pipeline Company of America, Mississippi River Transmission Corporation, Northern Border Pipeline Company, MoGas Pipeline, and Texas Eastern Transmission Corporation interstate pipeline systems.
• Technology Partners: Leverages the National Institute of Standards and Technology Cybersecurity framework and employs a third-party cybersecurity risk management program.

Facility Network:

• Manufacturing:
  • Coal: Labadie Energy Center (2,372 MW), Sioux Energy Center (972 MW).
  • Nuclear: Callaway Energy Center (1,194 MW), licensed until 2044.
  • Hydroelectric: Osage Energy Center (235 MW), Keokuk Energy Center (148 MW).
  • Wind: High Prairie Energy Center (400 MW), Atchison Energy Center (298.8 MW).
  • Solar: Huck Finn Energy Center (200 MW), Boomtown Energy Center (150 MW), Cass County Energy Center (150 MW), East St. Louis I (2.5 MW), East St. Louis II (1.9 MW), and other solar facilities.
  • Natural Gas (CTs): Audrain, Venice, Goose Creek, Pinckneyville, Raccoon Creek, Kinmundy, Peno Creek energy centers (total 2,535 MW).
• Transmission & Distribution:
  • Ameren Missouri: 3,114 circuit miles of electric transmission lines, 34,319 circuit miles of electric distribution lines (25% underground), 3,558 miles of natural gas transmission and distribution mains.
  • Ameren Illinois: 4,786 circuit miles of electric transmission lines, 46,299 circuit miles of electric distribution lines (16% underground), 18,750 miles of natural gas transmission and distribution mains.
  • ATXI: 561 circuit miles of electric transmission lines.
• Natural Gas Storage: Ameren Illinois operates 12 underground natural gas storage fields with a total working capacity of 24 billion cubic feet.

Operational Metrics:

• Ameren Missouri fuel costs: 1.27¢ per kilowatthour generated in 2024.
• Ameren Missouri energy supply mix (2024): Coal 50.5%, Nuclear 29.1%, Hydroelectric 3.5%, Wind 4.4%, Natural gas 1.0%, Methane gas and solar 0.2%, Purchased power – wind 0.4%, Purchased power – other 10.9%.
• Ameren Illinois procured power for 25% of total kilowatthour sales in 2024.
• Capacity utilization: Approximately 90% of turbines at High Prairie Energy Center remained idle in 2024 due to a collapse of three turbines.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Ameren Missouri serves 1.3 million electric and 0.1 million natural gas customers directly. Ameren Illinois serves 1.2 million electric and 0.8 million natural gas customers directly.
• Digital Platforms: Not explicitly detailed beyond general utility service.

Customer Portfolio: Enterprise Customers:

• Load Growth: Potential for significant load growth over the next decade from data centers, onshoring of manufacturing, and electrification initiatives. A new 250-MW data center is expected in Ameren Missouri’s service territory with electric service starting in 2026.
• Customer Concentration: No nonaffiliated customer represented more than 10% of accounts receivable as of December 31, 2024.

Geographic Revenue Distribution:

• Missouri (Ameren Missouri): 50% of Ameren Corporation’s 2024 operating revenues from electric service, 2% from natural gas delivery service.
• Illinois (Ameren Illinois): 27% of Ameren Corporation’s 2024 operating revenues from electric distribution delivery service, 12% from natural gas delivery service, 6% from electric transmission service.
• ATXI: 3% of Ameren Corporation’s 2024 operating revenues from electric transmission service.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The utility industry is highly regulated at federal and state levels, impacting rates, allowed ROE, and operational parameters. Key trends include a significant shift towards clean energy, grid modernization, and increasing energy demand from new sources like data centers and electrification. The industry faces challenges from regulatory lag, cost recovery, and the need for substantial capital investments in new transmission and generation facilities.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: The filing does not explicitly name direct competitors by company name, but rather describes the competitive landscape through regulatory oversight and market dynamics. Ameren Corporation operates as a regulated monopoly within its service territories. Competition primarily arises in wholesale power markets (MISO) and through regulatory processes.

Emerging Competitive Threats:

• Technological Advancements: Advancements in energy technologies, energy storage, and private generation could impact demand and sales volumes.
• Regulatory Changes: Changes in federal, state, and local laws, including environmental regulations (e.g., CO2 emission standards, MATS), and corporate tax laws (e.g., IRA), can create new compliance costs and alter the competitive landscape.
• Load Growth: Increased competition for resources and potential impacts on customer rates from significant load growth (e.g., data centers).
• Market Inefficiencies: Reliability issues stemming from fossil-fuel retirement, renewable energy integration, and market inefficiencies.

Competitive Response Strategy:

• Strategic Investments: Investing heavily in rate-regulated energy infrastructure, including grid modernization, renewable generation, and transmission expansion, to meet future demand and comply with environmental mandates.
• Regulatory Advocacy: Actively enhancing regulatory frameworks and advocating for responsible policies to ensure cost recovery and fair returns on investment.
• Operational Optimization: Optimizing operating performance to control costs and maintain system reliability during the clean energy transition.
• Diversified Energy Portfolio: Expanding renewable and natural gas generation while planning for the retirement of coal-fired assets and seeking license extensions for nuclear facilities.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics:

• Regulatory and Legislative Actions: Utility rates, ROE, and operational parameters are subject to federal, state, and local regulation. Regulatory lag and cost disallowances can adversely affect financial results. Rate orders are subject to appeal.
• Technology Disruption: Advancements in energy technologies, energy storage, and private generation could impact energy prices and demand, potentially leading to reduced sales volumes.
• Customer Concentration: No single nonaffiliated customer represents more than 10% of accounts receivable, mitigating direct customer concentration risk. However, significant load growth from new data centers and manufacturing facilities could create new dependencies.

Operational & Execution Risks

Supply Chain Vulnerabilities:

• Supplier Dependency: The Callaway Energy Center relies on a single NRC-licensed supplier for fuel assemblies, posing a concentration risk.
• Geographic Concentration: Coal supply is approximately 97% from the Powder River Basin, creating a geographic concentration risk for fuel.
• Capacity Constraints: Aging infrastructure (coal-fired energy centers prior to 1978, Callaway Energy Center from 1984) and the need for new transmission/generation facilities pose capacity and reliability challenges during the clean energy transition.
• Construction Risks: Large capital expenditure programs (up to $27.4 billion from 2025-2029) for new generation, transmission, and grid modernization projects carry risks of construction delays, cost overruns, and performance issues.

Financial & Regulatory Risks

Market & Financial Risks:

• Demand Volatility: While minimal growth in the past two decades, potential for significant growth from data centers, onshoring, and electrification could introduce new demand patterns and resource adequacy challenges.
• Foreign Exchange: Not explicitly mentioned as a material risk in the provided text.
• Credit & Liquidity: Deterioration in credit metrics or actions by credit rating agencies could require additional collateral or assurances. A sub-investment-grade rating could require $740 million in additional collateral for Ameren Corporation.
• Inflation & Interest Rates: Impact of inflation and rising interest rates on capital costs, operating expenses, and allowed ROE.
• Tax Law Changes: Changes in tax laws/rates, IRA regulations, and challenges to tax positions could impact financial results. The IRA's 15% minimum tax on adjusted financial statement income is a potential risk, though Ameren Corporation does not expect to be subject to it through 2029.

Regulatory & Compliance Risks:

• Environmental Regulation: Compliance with evolving environmental laws (e.g., CO2 emission standards, MATS, CCR Rule, Clean Water Act, Illinois emission standards) requires significant capital expenditures (estimated $580 million for CO2, $320 million for MATS). Non-compliance can result in substantial penalties.
• Export Controls: Not explicitly mentioned as a material risk in the provided text.
• Data Privacy: Cybersecurity risks, including ransomware, AI-driven threats, hacking, and social engineering, pose risks to data security and operational integrity.

Geopolitical & External Risks

Geopolitical Exposure:

• Geographic Dependencies: Not explicitly detailed beyond the domestic service territories.
• Trade Relations: Not explicitly mentioned as a material risk in the provided text.
• Sanctions & Export Controls: Not explicitly mentioned as a material risk in the provided text.
• External Conflicts: Impacts of Russian invasion of Ukraine and Middle East conflicts are listed as forward-looking statement factors, but specific impacts are not detailed as current risks.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas:

• Grid Modernization: Significant investment in smart grid technologies, including smart meters for nearly all electric and natural gas customers.
• Clean Energy Technologies: Focus on developing and integrating renewable generation (solar, wind, hydroelectric), battery storage, and advanced natural gas and nuclear generation.
• Cybersecurity: Continuous investment in cybersecurity programs, leveraging the National Institute of Standards and Technology Cybersecurity framework and third-party risk management.

Innovation Pipeline:

• Generation Expansion: Ameren Missouri's 2025 Change to the 2023 Preferred Resource Plan outlines plans for 3,200 MWs renewable generation, 1,000 MWs battery storage, and 1,500 MWs nuclear generation by 2040.
• Transmission Infrastructure: Participation in MISO long-range transmission planning, with assigned projects totaling $3.1 billion (first tranche and first set of second tranche).

Intellectual Property Portfolio:

• Patent Strategy: Not explicitly detailed in the provided text.
• Licensing Programs: Not explicitly detailed in the provided text.
• IP Litigation: Not explicitly detailed in the provided text.

Technology Partnerships:

• Strategic Alliances: Not explicitly detailed by company name, but the company engages in research collaborations and leverages third-party cybersecurity expertise.
• Research Collaborations: Not explicitly detailed by specific academic or research partners.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The filing mentions the CEO and Chief Human Resources Officer are responsible for workforce strategy, and the Human Resources Committee oversees human capital management. Specific succession planning details are not provided.

Board Composition: Ameren Corporation's board of directors includes a Cybersecurity and Digital Technology Committee, Finance Committee, Human Resources Committee, Nominating and Corporate Governance Committee, and Nuclear, Operations and Environmental Sustainability Committee. Richard J. Harshman serves as chairman of the Audit and Risk Committee and is an audit committee financial expert and independent.

Human Capital Strategy

Workforce Composition:

• Total Employees: 8,981 as of December 31, 2024.
• Geographic Distribution: Ameren Missouri (3,830 employees), Ameren Illinois (3,108 employees), Ameren Services (2,043 employees).
• Skill Mix: Majority of workforce consists of skilled-craft and STEM-related professional and technical employees.
• Age Demographics: Approximately 23% of Ameren Corporation's, Ameren Missouri's, and Ameren Illinois' total employees were 55 years old or older as of December 31, 2024.
• Average Tenure: Ameren Corporation (13 years), Ameren Missouri (14 years), Ameren Illinois (13 years), Ameren Services (11 years).

Talent Management: Acquisition & Retention:

• Hiring Strategy: Not explicitly detailed, but the company faces risks related to the availability of a skilled workforce.
• Retention Metrics: Total attrition rate of 7% in 2024, with the majority due to retirements.
• Employee Value Proposition: Total rewards package includes base salary, medical benefits, retirement benefits (pension, 401(k)), short-term incentives, long-term stock-based compensation for certain employees, wellness, and employee assistance programs.

Diversity & Development:

• Diversity Metrics: Employee generation breakdown as of December 31, 2024: Baby Boomer (11%), Generation X (40%), Millennials (42%), Generation Z/Post Millennial (7%).
• Development Programs: Not explicitly detailed beyond general human capital management pillars (Culture, Leadership, Talent, Rewards) and core competencies.
• Culture & Engagement: Not explicitly detailed beyond the four key pillars of workforce strategy.

Environmental & Social Impact

Environmental Commitments: Climate Strategy:

• Emissions Targets: Targeting net-zero carbon emissions by 2045, with a 60% reduction by 2030 and 85% reduction by 2040 (from 2005 levels). These goals include Scope 1 and Scope 2 emissions.
• Carbon Neutrality: Net-zero carbon emissions target by 2045.
• Renewable Energy: Significant plans to add 3,200 MWs of renewable generation by 2030 and 1,500 MWs by 2035.

Supply Chain Sustainability:

• Supplier Engagement: Not explicitly detailed in the provided text.
• Responsible Sourcing: Not explicitly detailed in the provided text, but coal is sourced from Powder River Basin and Illinois Basin.

Social Impact Initiatives:

• Community Investment: Ameren Missouri is required to fund an electric bus/charging station program and an air purifier program, estimated to cost $64 million, as part of a Clean Air Act litigation remedy.
• Product Impact: Customer energy-efficiency programs are implemented by Ameren Missouri and Ameren Illinois.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Electric revenues are affected by weather, with cooling degree days up 7% and heating degree days down 4% in 2024 for Ameren Missouri. Natural gas revenues are also affected by weather, with a weather normalization adjustment rider (WNAR) for Ameren Illinois.
• Economic Sensitivity: The company's performance is influenced by macroeconomic factors, including inflation, interest rates, and potential recessionary impacts.
• Industry Cycles: The utility industry is generally considered defensive, but is sensitive to changes in energy prices, demand, and regulatory cycles.

Planning & Forecasting:

• Demand Forecasting: The 2025 Change to the 2023 Preferred Resource Plan for Ameren Missouri is being updated due to new load growth opportunities (data centers, manufacturing).
• Inventory Management: Coal inventory at Labadie and Sioux energy centers was at targeted levels as of December 31, 2024.
• Capacity Planning: Ameren Missouri's 2025 Change to the 2023 PRP outlines extensive capacity additions across natural gas, renewable, battery storage, and nuclear generation.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations:

• Utility Rates: Regulated by MoPSC (Missouri), ICC (Illinois), and FERC (federal). Rates are determined through various mechanisms including historical test year, future test year, formula ratemaking, and multi-year rate plans.
• Environmental Regulations: Subject to numerous federal and state environmental statutes and regulations, including the Clean Air Act (CO2 emission standards, MATS, CSAPR, NSR), Clean Water Act, and CCR Rule. Compliance requires significant capital expenditures.
• Nuclear Regulation: Ameren Missouri's Callaway Energy Center is regulated by the NRC.
• Transmission Reliability: Ameren Missouri, Ameren Illinois, and ATXI are subject to mandatory NERC reliability standards, including cybersecurity, and are members of SERC and MRO.
• Pipeline Safety: Subject to PHMSA regulations for natural gas pipelines.

Trade & Export Controls:

• Export Restrictions: Not explicitly detailed as a material risk or compliance requirement.
• Sanctions Compliance: Not explicitly detailed as a material risk or compliance requirement.

Legal Proceedings:

• Environmental Litigation: Ameren Missouri is involved in Clean Air Act litigation, which led to the retirement of the Rush Island Energy Center and a $64 million funding requirement for environmental programs. The EPA's CO2 emission standards and MATS rules are subject to legal challenges.
• Regulatory Appeals: Ameren Illinois intends to appeal the ICC's December 2024 MYRP order. FERC ROE orders are also subject to rehearing requests and appeals.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: Ameren Corporation's effective income tax rate was 7% in 2024, compared to 14% in 2023. Ameren Missouri had an effective tax benefit rate of -18% in 2024, while Ameren Illinois had an effective tax rate of 24%.
• Geographic Tax Planning: Ameren Missouri, Ameren Illinois, and other subsidiaries are parties to a tax allocation agreement with Ameren Corporation (parent).
• Tax Reform Impact: The Inflation Reduction Act of 2022 (IRA) extends federal production and investment tax credits and allows for transferability. Ameren Missouri expects to transfer approximately $300 million annually on average from 2025 to 2029. The IRA also imposes a 15% minimum tax, but Ameren Corporation does not expect to be subject to it through 2029.

Insurance & Risk Transfer

Risk Management Framework:

• Insurance Coverage:
  • Nuclear Liability: Callaway Energy Center has public liability and nuclear worker liability coverage up to $16,263 million, and property damage coverage up to $3,200 million (NEIL and EMANI). Accidental outage coverage is $490 million.
  • Cybersecurity: Ameren Corporation manages cybersecurity as an enterprise risk through an integrated enterprise risk management program, with board oversight and a Chief Information Security Officer.
• Risk Transfer Mechanisms:
  • Commodity Hedging: Uses financial instruments to hedge natural gas prices. Price-hedged percentages for projected required supply in 2025 include 93% for coal, 99% for coal transportation, 100% for nuclear fuel, 100% for natural gas for distribution, and 77% for purchased power for Ameren Illinois.
  • Regulatory Mechanisms: Various riders and trackers (e.g., FAC, PGA, RESRAM, MEEIA, MYRP, RBA, VBA) are in place to recover or refund specified costs, transferring some market and operational risks to customers, subject to regulatory approval.
  • Securitization: AMF issued $476 million in securitized utility tariff bonds to finance Rush Island Energy Center retirement costs, transferring some of these costs to bondholders and customers over 15 years.