UNION ELECTRIC CO

Previous wording

Net income attributable to Ameren common shareholders in the three months ended March 31, 2024, was $261 million, or $0.98 per diluted share, compared with $264 million, or $1.00 per diluted share, in the year-ago period. Net income for the three months ended March 31, 2024, was unfavorably affected by increased other operations and maintenance expenses not subject to formula rates, riders, or trackers, including a charge recorded by Ameren Missouri related to a change in the estimated minimum cost of additional mitigation relief associated with NSR and Clean Air Act litigation applicable to the Rush Island Energy Center. Earnings for the three months ended March 31, 2024, were also unfavorably affected by increased income tax expense, primarily due to a decrease in income tax benefits at Ameren (parent) related to stock-based compensation; an increase in the weighted-average basic common shares outstanding; and a lower recognized ROE at Ameren Illinois Electric Distribution. Net income for the three months ended March 31, 2024, was favorably affected by increased base rate revenues pursuant to the ICC's November 2023 natural gas rate order and increased base rate revenues pursuant to the MoPSC's June 2023 electric rate order, which increased earnings at Ameren Illinois Natural Gas and Ameren Missouri, respectively. Earnings for the three months ended March 31, 2024, were also favorably affected by increased rate base investments at Ameren Transmission.

Current wording

Net income attributable to Ameren common shareholders in the three months ended June 30, 2024, was $258 million, or $0.97 per diluted share, compared with $237 million, or $0.90 per diluted share, in the year-ago period. Net income attributable to Ameren common shareholders in the six months ended June 30, 2024, was $519 million, or $1.95 per diluted share, compared with $501 million, or $1.90 per diluted share, in the year-ago period. Net income for the three and six months ended June 30, 2024, were favorably affected by increased base rate revenues pursuant to the MoPSC's June 2023 electric rate order; increased retail electric sales at Ameren Missouri, primarily due to warmer spring and early summer temperatures in 2024; and increased deferral of financing costs associated with rate base investments at Ameren Missouri. Earnings for the three and six months ended June 30, 2024, were also favorably affected by increased rate base investments at Ameren Transmission. Net income for the six months ended June 30, 2024, was favorably affected by higher base rate revenues pursuant to the ICC's November 2023 natural gas rate order, which increased earnings at Ameren Illinois Natural Gas. Net income for the three and six months ended June 30, 2024, were unfavorably affected by increased other operations and maintenance expenses not subject to formula rates, riders, or trackers, including a charge recorded by Ameren Missouri related to a change in the estimated minimum cost of additional mitigation relief associated with NSR and Clean Air Act litigation applicable to the Rush Island Energy Center for the six months ended June 30, 2024. Earnings for the three and six months ended June 30, 2024, were also unfavorably affected by increased financing costs due to higher long-term debt balances and interest rates and a lower recognized ROE under the MYRP. In addition, an increase in the weighted-average basic common shares outstanding reduced earnings per diluted share.

Previous wording

Ameren’s strategic plan includes investing in rate-regulated energy infrastructure, enhancing regulatory frameworks and advocating for responsible policies, and optimizing operating performance to capitalize on opportunities to benefit our customers, communities, shareholders, and the environment. Ameren remains focused on disciplined cost management and strategic capital allocation. Ameren invested $0.9 billion in its rate-regulated businesses in the three months ended March 31, 2024.

Current wording

Ameren’s strategic plan includes investing in rate-regulated energy infrastructure, enhancing regulatory frameworks and advocating for responsible policies, and optimizing operating performance to capitalize on opportunities to benefit our customers, communities, shareholders, and the environment. Ameren remains focused on disciplined cost management and strategic capital allocation. Ameren invested $1.9 billion in its rate-regulated businesses in the six months ended June 30, 2024.

Previous wording

In November 2023, Ameren Missouri petitioned the MoPSC for a financing order to authorize the issuance of securitized utility tariff bonds to finance $519 million of costs related to the planned accelerated retirement of the Rush Island Energy Center, which includes the expected remaining unrecovered net plant balance associated with the facility, among other costs. Ameren Missouri requested to collect the amounts necessary to repay the bonds over approximately 15 years from the date of bond issuance. In March 2024, the MoPSC staff filed an updated response to Ameren Missouri’s petition that stated Ameren Missouri’s decision to accelerate the retirement of the Rush Island Energy Center was prudent and recommended that $497 million of costs be financed through securitized utility tariff bonds. However, the MoPSC staff claimed Ameren Missouri’s prior actions that resulted in the adverse ruling in the NSR and Clean Air Act Litigation discussed in Note 9 – Commitments and Contingencies under Part I, Item 1, of this report, were imprudent and recommended that the impact of those actions on customers be considered in future regulatory proceedings. In February 2024, the MoOPC filed a response to Ameren Missouri’s petition that opposes the issuance of securitized utility tariff bonds. If Ameren Missouri is not allowed to recover Rush Island Energy Center costs through securitization or if future regulatory proceedings result in revenue reductions based on Ameren Missouri’s prior actions that resulted in the adverse ruling in the NSR and Clean Air Act litigation, it could have a material adverse effect on the results of operations, financial position, and liquidity of Ameren and Ameren Missouri. Ameren Missouri expects a decision by the MoPSC by the end of June 2024, but cannot predict the ultimate outcome of this regulatory proceeding.

Current wording

In June 2024, the MoPSC issued a financing order authorizing the issuance of securitized utility tariff bonds by a wholly owned, special purpose subsidiary of Ameren Missouri to finance approximately $470 million of costs related to the planned accelerated retirement of the Rush Island Energy Center, which includes the expected remaining unrecovered net plant balance associated with the facility, among other costs. Ameren Missouri initially petitioned the MoPSC in November 2023 to finance $519 million of costs. The difference between the initial petition and final financing order will be considered for recovery in future rate proceedings involving the securitized utility tariff charge or base rates. Ameren Missouri will collect the amounts necessary to repay the bonds over approximately 15 years from the date of bond issuance. The financing order also includes a determination that the decision to retire the Rush Island Energy Center was reasonable and prudent. The MoPSC did not make a determination regarding the prudency of Ameren Missouri's prior actions that resulted in the adverse ruling in the NSR and Clean Air Act litigation discussed in Note 9 – Commitments and Contingencies under Part I, Item 1, of this report. However, claims regarding such actions could be considered in future regulatory proceedings. If future regulatory proceedings result in revenue reductions based on Ameren Missouri’s prior actions that resulted in the adverse ruling in the NSR and Clean Air Act litigation, it could have a material adverse effect on the results of operations, financial position, and liquidity of Ameren and Ameren Missouri. In July 2024, the MoOPC filed a request for rehearing of the financing order. Ameren Missouri expects a decision on the rehearing request in August 2024. The decision on the rehearing request is subject to appeal. The timing of the issuance of securitized utility tariff bonds is dependent on the conclusion of any appeal process.

Previous wording

In March 2024, the MoPSC issued an order approving a nonunanimous stipulation and agreement related to requested CCNs for the Split Rail, Vandalia, and Bowling Green solar projects. The stipulation and agreement also requested approval of a CCN for the Cass County Solar Project, conditioned upon full subscription of the project capacity under the Renewable Solutions Program, a commercial, industrial, and governmental customer program. Ameren Missouri expects a decision by the MoPSC on the Cass County Solar Project CCN once this project’s capacity under the Renewable Solutions Program is fully subscribed. In February and April 2023, the MoPSC issued orders approving requested CCNs for the Huck Finn and Boomtown solar projects, respectively.

Current wording

In June 2024, the MoPSC issued an order approving a requested CCN for the Cass County Solar Project and Ameren Missouri acquired the project, which includes solar panels, project design, land rights, and engineering, procurement, and construction agreements, for approximately $250 million and took over construction management of the project. Also in June 2024, Ameren Missouri filed for a CCN with the MoPSC to construct the Castle Bluff Natural Gas Project. In March 2024, the MoPSC issued an order approving requested CCNs for the Split Rail, Vandalia, and Bowling Green solar projects. In February and April 2023, the MoPSC issued orders approving requested CCNs for the Huck Finn and Boomtown solar projects, respectively.

Previous wording

In January 2024, Ameren Missouri filed a proposed customer energy-efficiency plan with the MoPSC under the MEEIA. This filing proposed a three-year plan, which includes a portfolio of customer energy-efficiency programs, along with the continued use of the MEEIA rider, which allows Ameren Missouri to collect from, or refund to, customers any difference in actual MEEIA program costs and related lost electric revenues and the amounts collected from customers. If the plan is approved, Ameren Missouri intends to invest $123 million annually in the proposed customer energy-efficiency programs from 2025 to 2027. In addition, Ameren Missouri requested performance incentives applicable to each plan year to earn revenues by achieving certain customer energy-efficiency savings and target spending goals. If 100% of the goals are achieved, Ameren Missouri would earn performance incentive revenues totaling $56 million over the three-year plan. Ameren Missouri also requested additional performance incentives applicable to each plan year totaling up to $14 million over the three-year plan, if Ameren Missouri exceeds 100% of the goals. Ameren Missouri expects a decision by the MoPSC by October 2024, but cannot predict the ultimate outcome of this regulatory proceeding.

Current wording

In January 2024, Ameren Missouri filed a proposed customer energy-efficiency plan with the MoPSC under the MEEIA. This filing proposed a three-year plan, which includes a portfolio of customer energy-efficiency programs, along with the continued use of the MEEIA rider, which allows Ameren Missouri to collect from customers its actual MEEIA program costs and related lost electric revenues. If the plan is approved, Ameren Missouri intends to invest $123 million annually in the proposed customer energy-efficiency programs from 2025 to 2027. In addition, Ameren Missouri requested performance incentives applicable to each plan year to earn revenues by achieving certain customer energy-efficiency savings and target spending goals. If 100% of the goals are achieved, Ameren Missouri would earn performance incentive revenues totaling $56 million over the three-year plan. Ameren Missouri also requested additional performance incentives applicable to each plan year totaling up to $14 million over the three-year plan, if Ameren Missouri exceeds 100% of the goals. In March 2024, the MoPSC staff and the MoOPC filed responses in opposition to the proposed customer energy-efficiency plan under the MEEIA. Ameren Missouri expects a decision by the MoPSC by October 2024, but cannot predict the ultimate outcome of this regulatory proceeding.

Previous wording

In September 2023, the United States District Court for the Eastern District of Missouri granted Ameren Missouri’s request to modify a September 2019 remedy order issued by the district court in order to allow the retirement of the Rush Island Energy Center in advance of its previously expected retirement date of 2039, in lieu of installing a flue gas desulfurization system. In its amended remedy order, the district court established an October 15, 2024 retirement date to allow for the completion of various transmission reliability projects and, in the interim, authorized Ameren Missouri to operate the energy center only as needed and as directed by the MISO. The United States Department of Justice is seeking an order from the district court providing for additional mitigation relief related to prior emissions. Ameren Missouri contends that the retirement of the Rush Island Energy Center, which eliminates all future emissions from the energy center, mitigates claims relating to prior emissions. In March 2024, the district court ordered Ameren Missouri and the United States Department of Justice to file proposed draft orders outlining additional mitigation relief. In May 2024, Ameren Missouri filed a proposed draft order that includes retiring the Rush Island Energy Center, a program to provide electric buses and charging stations to schools in the metro St. Louis area, a program to provide air filters to eligible Ameren Missouri electric residential customers, and the retirement of SO 2 allowances. Excluding the accelerated retirement of the Rush Island Energy Center, these programs are estimated to cost approximately $20 million. Also in May 2024, the United States Department of Justice filed a proposed draft order that includes a program to provide electric buses and charging stations to schools in the metro St. Louis area and a program to provide air filters to eligible Ameren Missouri electric residential customers. These programs include a significantly greater number of buses, charging stations, and air filters than Ameren Missouri’s proposal and the United States Department of Justice estimates these programs would cost approximately $120 million. As of March 31, 2024, Ameren and Ameren Missouri recorded a $20 million liability related to the cost of potential additional mitigation, which represents the estimated minimum liability, as no other amount within the range was a better estimate. The district court is expected to hold a hearing in mid-2024 and an order is expected in the second half of 2024. Depending on the scope and basis of the order, Ameren Missouri or the United States Department of Justice could appeal any additional mitigation relief ordered.

Current wording

In September 2023, the United States District Court for the Eastern District of Missouri granted Ameren Missouri’s request to modify a September 2019 remedy order issued by the district court in order to allow the retirement of the Rush Island Energy Center in advance of its previously expected retirement date of 2039, in lieu of installing a flue gas desulfurization system. In its amended remedy order, the district court established an October 15, 2024 retirement date to allow for the completion of various transmission reliability projects and, in the interim, authorized Ameren Missouri to operate the energy center only as needed and as directed by the MISO. The United States Department of Justice is seeking an order from the district court providing for additional mitigation relief related to prior emissions. Ameren Missouri contends that the retirement of the Rush Island Energy Center, which eliminates all future emissions from the energy center, mitigates claims relating to prior emissions. In March 2024, the district court ordered Ameren Missouri and the United States Department of Justice to file proposed draft orders outlining additional mitigation relief. In May 2024, Ameren Missouri filed a proposed draft order that includes retiring the Rush Island Energy Center, a program to provide electric buses and charging stations to schools in the metro St. Louis area, a program to provide air filters to eligible Ameren Missouri electric residential customers, and the retirement of SO 2 allowances. Excluding the accelerated retirement of the Rush Island Energy Center, these programs are estimated to cost approximately $20 million. Also in May 2024, the United States Department of Justice filed a proposed draft order that includes a program to provide electric buses and charging stations to schools in the metro St. Louis area and a program to provide air filters to eligible Ameren Missouri electric residential customers. These programs include a significantly greater number of buses, charging stations, and air filters than Ameren Missouri’s proposal and the United States Department of Justice estimates these programs would cost approximately $120 million. A mediation proceeding related to the potential additional mitigation relief is scheduled for September 2024. As of June 30, 2024, Ameren and Ameren Missouri recorded a $20 million liability related to the cost of potential additional mitigation, which represents the estimated minimum liability, as no other amount within the range was a better estimate. Ameren Missouri could be required to implement some or all of the additional mitigation relief programs included in the United States Department of Justice’s proposed draft order, the costs of which could be material and could adversely impact Ameren and Ameren Missouri’s results of operations and financial position. Depending on the scope and basis of any final order issued by the district court, which is expected by the end of 2024, Ameren Misso…

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Previous wording

In April 2024, Ameren Illinois filed for a reconciliation adjustment to its 2023 electric distribution service revenue requirement with the ICC, requesting recovery of $160 million. The reconciliation adjustment reflects a capital structure composed of 50% common equity and Ameren Illinois’ actual 2023 recoverable costs and year-end rate base. An ICC decision in this proceeding is required by December 2024, and any approved adjustment would be collected from customers in 2025. This is the final revenue requirement reconciliation under the IEIMA formula framework.

Current wording

In April 2024, Ameren Illinois filed for a reconciliation adjustment to its 2023 electric distribution service revenue requirement with the ICC. In July 2024, Ameren Illinois filed a revised reconciliation adjustment, requesting recovery of $158 million. The reconciliation adjustment reflects a capital structure composed of 50% common equity and Ameren Illinois’ actual 2023 recoverable costs and year-end rate base. An ICC decision in this proceeding is required by December 2024, and any approved adjustment would be collected from customers in 2025. This is the final revenue requirement reconciliation under the IEIMA formula framework.

Previous wording

In January 2024, the ICC partially denied a rehearing requested by Ameren Illinois to revise the allowed ROE in the December 2023 order and granted Ameren Illinois’ rehearing request to consider whether it is appropriate to use the 2022 year-end rate base for each year of the MYRP and to include a base level of investments to maintain grid reliability in each year of the MYRP. Additionally, the scope of the rehearing includes a review of certain operations and maintenance expenses in each year of the MYRP. In February 2024, Ameren Illinois filed its request in the rehearing proceeding, and subsequently updated the request in April 2024, proposing an updated 2024 revenue requirement of $1,213 million, which is based on a $4.2 billion rate base, a capital structure composed of 50% common equity, and an allowed ROE of 8.72%. In April 2024, the ICC staff filed its recommendation in the rehearing proceeding. The ICC staff recommended a 2024 revenue requirement of $1,195 million, which is based on a $4.0 billion rate base, a capital structure composed of 50% common equity, and an allowed ROE of 8.72%. An ICC decision in the rehearing proceeding is expected by late June 2024, with new rates effective July 2024. Also, in January 2024, Ameren Illinois filed an appeal of the December 2023 ICC order and the partial denial of Ameren Illinois’ request for rehearing, including the 8.72% ROE, to the Illinois Appellate Court for the Fifth Judicial District. The court is under no deadline to address the appeal. Ameren Illinois cannot predict the ultimate outcome of the revised Grid Plan filing, its request to update the associated MYRP revenue requirements for 2024 through 2027, the rehearing proceeding, or the appeal to the Illinois Appellate Court for the Fifth Judicial District.

Current wording

In December 2023, the ICC issued an order in Ameren Illinois' MYRP proceeding approving base rates for electric distribution services for 2024 through 2027 and rejecting Ameren Illinois' Grid Plan, which was addressed as part of the MYRP proceeding. Rate changes consistent with the December 2023 order became effective in January 2024 and remained effective through late June 2024, when new rates became effective pursuant to the June 2024 ICC rehearing order discussed below. The December 2023 order adopted an alternative methodology to establish a rate base and revenue requirements for the years 2024 through 2027 using Ameren Illinois’ previously approved 2022 year-end rate base. In January 2024, the ICC partially denied a rehearing requested by Ameren Illinois to revise the allowed ROE in the December 2023 order and granted Ameren Illinois’ rehearing request to reconsider the rate base for each year of the MYRP and to include a base level of investments to maintain grid reliability in each year of the MYRP. In June 2024, the ICC issued an order on Ameren Illinois’ rehearing request, approving revenue requirements for electric distribution services for 2024, 2025, 2026, and 2027 of $1,196 million, $1,282 million, $1,350 million, and $1,397 million, respectively. New rates became effective in late June 2024. In July 2024, Ameren Illinois filed a request for rehearing of the ICC’s June 2024 rehearing order to include an asset associated with other postretirement benefits in the rate base. Subsequently, in August 2024, the ICC denied the rehearing request. The ICC rehearing denial is subject to appeal. Also, in January 2024, Ameren Illinois filed an appeal of the December 2023 ICC order, including the 8.72% ROE, to the Illinois Appellate Court for the Fifth Judicial District. The court is under no deadline to address the appeal. In July 2024, Ameren Illinois filed an update to its revised Grid Plan and a request to update the associated MYRP revenue requirements for 2024, 2025, 2026, and 2027 of $1,215 million, $1,300 million, $1,386 million, and $1,446 million, respectively. An ICC decision on the revised Grid Plan and updated revenue requirements is expected by the end of 2024 with rates effective in January 2025. Ameren Illinois cannot predict the ultimate outcome of the appeal to the Illinois Appellate Court for the Fifth Judicial District, its revised Grid Plan filing, or its request to update the associated MYRP revenue requirements for 2024 through 2027.

Previous wording

In November 2023, the ICC issued an order in Ameren Illinois’ January 2023 natural gas delivery service regulatory rate review, which resulted in an increase to its annual revenues for natural gas delivery service of $112 million based on a 9.44% allowed ROE, a capital structure composed of 50% common equity, and a rate base of approximately $2.85 billion. The order reflected a reduction of approximately $93 million of planned distribution and transmission capital investments included in Ameren Illinois’ requested revenue increase, which used a 2024 future test year. The new rates became effective on November 28, 2023. In December 2023, Ameren Illinois filed a request for rehearing of the ICC’s November 2023 order. The filing requested the ICC revise the order to include an allowed ROE of at least 9.89%, a capital structure composed of 52% common equity, and the reversal of the approximately $93 million reduction of planned distribution and transmission capital investments included in the order, among other things. In January 2024, the ICC denied Ameren Illinois’ rehearing request. Subsequently, in January 2024, Ameren Illinois filed an appeal of the November 2023 ICC order and the January 2024 ICC denial of Ameren Illinois’ request for rehearing to the Illinois Appellate Court for the Fifth Judicial District. The court is under no deadline to address the appeal. Ameren Illinois cannot predict the ultimate outcome of this appeal.

Current wording

In November 2023, the ICC issued an order in Ameren Illinois’ January 2023 natural gas delivery service regulatory rate review, which resulted in an increase to its annual revenues for natural gas delivery service of $112 million based on a 9.44% allowed ROE, a capital structure composed of 50% common equity, and a rate base of approximately $2.85 billion. The order reflected a reduction of approximately $93 million of planned distribution and transmission capital investments included in Ameren Illinois’ requested revenue increase, which used a 2024 future test year. The new rates became effective on November 28, 2023. In December 2023, Ameren Illinois filed a request for rehearing of the ICC’s November 2023 order. The filing requested the ICC revise the order to include an allowed ROE of at least 9.89%, a capital structure composed of 52% common equity, and the reversal of the approximately $93 million reduction of planned distribution and transmission capital investments included in the order, among other things. In January 2024, the ICC denied Ameren Illinois’ rehearing request. Subsequently, in January 2024, Ameren Illinois filed an appeal of the November 2023 ICC order to the Illinois Appellate Court for the Fifth Judicial District. The court is under no deadline to address the appeal. Ameren Illinois cannot predict the ultimate outcome of this appeal.

Previous wording

In 2021, the MISO issued a report outlining a preliminary long-range transmission planning roadmap of projects through 2039, which considers the rapidly changing generation mix within MISO resulting from significant additions of renewable generation, actual and expected generation plant closures, and state mandates or goals for clean energy or carbon emissions reductions. In July 2022, the MISO approved the first tranche of projects under the roadmap. A portion of these projects were assigned to various utilities, of which Ameren was awarded projects that are estimated to cost approximately $1.8 billion, based on the MISO’s cost estimate. Related to these projects, Ameren began substation upgrades in May 2024 in advance of transmission line construction, which is expected to begin in 2026, with forecasted completion dates near the end of this decade. In 2022 and 2023, the MISO initiated requests for proposals for first tranche competitive bid projects. In October and November 2023, two first tranche competitive bid projects were awarded to ATXI and represent a total estimated investment of approximately $0.1 billion. In April 2024, the remaining first tranche competitive-bid project was awarded to ATXI and represents an estimated investment of approximately $0.3 billion. ATXI will own 51% of the assets associated with the projects awarded in October 2023 and April 2024, and the remaining 49% of the assets will be owned by an unaffiliated entity. In February 2024, Ameren Illinois and ATXI filed a request for a CCN, among other things, with the ICC related to the portion of the MISO long-range transmission projects discussed above that will be constructed within the ICC’s jurisdiction. A decision by the ICC is expected by mid-2025. In March 2024, the MISO preliminarily identified a second tranche of projects with estimated costs of $17 billion to $23 billion based on MISO’s cost estimate. The MISO is expected to approve the second tranche of projects in the third quarter of 2024.

Current wording

In 2021, the MISO issued a report outlining a preliminary long-range transmission planning roadmap of projects through 2039, which considers the rapidly changing generation mix within MISO resulting from significant additions of renewable generation, actual and expected generation plant closures, and state mandates or goals for clean energy or carbon emissions reductions. In July 2022, the MISO approved the first tranche of projects under the roadmap. A portion of these projects were assigned to various utilities, of which Ameren was awarded projects that are estimated to cost approximately $1.8 billion, based on the MISO’s cost estimate. Related to these projects, Ameren began substation upgrades in May 2024 in advance of transmission line construction, which is expected to begin in 2026, with forecasted completion dates near the end of this decade. In addition, MISO awarded two competitive bid projects to ATXI in the fourth quarter of 2023 and one in April 2024 that represent a total estimated investment of approximately $220 million for ATXI. In February 2024, Ameren Illinois and ATXI filed a request for a CCN, among other things, with the ICC related to the portion of the MISO long-range transmission projects they will construct within the ICC’s jurisdiction. A decision by the ICC is expected by mid-2025. In July 2024, ATXI filed a request for a CCN, among other things, with the MoPSC related to a portion of the MISO long-range transmission projects that it will construct within the MoPSC’s jurisdiction. A decision by the MoPSC is expected by mid-2025. In June 2024, the MISO revised a proposed first set of second tranche projects with estimated costs of $23 billion to $27 billion based on the MISO’s cost estimate. The MISO is expected to approve this set of projects by the end of 2024. The MISO expects to develop an additional set of second tranche projects in 2025.

Previous wording

We are observing inflationary pressures on the prices of labor, services, materials, and supplies, as well as high interest rates. Ameren Missouri and Ameren Illinois are generally allowed to pass on to customers prudently incurred costs for fuel, purchased power, and natural gas supply. Additionally, for certain non-commodity cost changes, the use of trackers, riders, formula ratemaking, and future test years, as applicable, mitigates our exposure.

Current wording

Although the pace of inflation has slowed recently, we are still observing elevated inflation levels that continue to put pressure on the prices of labor, services, materials, and supplies, as well as high interest rates. Ameren Missouri and Ameren Illinois are generally allowed to pass on to customers prudently incurred costs for fuel, purchased power, and natural gas supply. Additionally, for certain non-commodity cost changes, the use of trackers, riders, formula ratemaking, and future test years, as applicable, mitigates our exposure.

Previous wording

Ameren Missouri principally uses coal and enriched uranium for fuel in its electric operations and purchases natural gas for its customers. Ameren Illinois purchases power and natural gas for its customers. The prices for these commodities can fluctuate significantly because of the global economic and political environment, weather, supply, demand, and many other factors. We have natural gas cost recovery mechanisms for our Illinois and Missouri natural gas distribution businesses, a purchased power cost recovery mechanism for Ameren Illinois’ electric distribution business, and a FAC for Ameren Missouri’s electric business.

Current wording

Ameren Missouri principally uses coal and enriched uranium for fuel in its electric generation operations and purchases natural gas for its customers. Ameren Illinois purchases power and natural gas for its customers. The prices for these commodities can fluctuate significantly because of the global economic and political environment, weather, supply, demand, and many other factors. We have natural gas cost recovery mechanisms for our Illinois and Missouri natural gas distribution businesses, a purchased power cost recovery mechanism for Ameren Illinois’ electric distribution business, and a FAC for Ameren Missouri’s electric business.

Previous wording

The following table presents a summary of Ameren’s earnings for the three months ended March 31, 2024 and 2023:

Current wording

The following table presents a summary of Ameren’s earnings for the three and six months ended June 30, 2024 and 2023:

Previous wording

Net income attributable to Ameren common shareholders decreased $3 million, or 2 cents per diluted share, in the three months ended March 31, 2024, compared with the year-ago period. The decrease was due to net income decreases of $15 million, $5 million, and $3 million as activity not reported as part of a segment, primarily at Ameren (parent), Ameren Illinois Electric Distribution, and Ameren Missouri, respectively. These decreases were partially offset by net income increases of $19 million and $1 million at Ameren Illinois Natural Gas and Ameren Transmission, respectively.

Current wording

Net income attributable to Ameren common shareholders increased $21 million, or 7 cents per diluted share, in the three months ended June 30, 2024, compared with the year-ago period. The increase was due to net income increases of $26 million and $7 million at Ameren Missouri and Ameren Transmission, respectively. These increases were partially offset by net income decreases of $5 million and $5 million at Ameren Illinois Electric Distribution and Ameren Illinois Natural Gas, respectively, and an increase in net loss of $2 million for activity not reported as part of a segment, primarily at Ameren (parent).

Previous wording

Earnings per diluted share were favorably affected in the three months ended March 31, 2024, compared to the year-ago period, by:

Current wording

Earnings per diluted share were favorably affected in the three and six months ended June 30, 2024, compared to the year-ago periods (except where a specific period is referenced), by:

Previous wording

•increased base rate revenues at Ameren Missouri effective July 9, 2023, pursuant to the June 2023 MoPSC electric rate order, partially offset by the net effect of amortization of previously deferred depreciation expense under the PISA and RESRAM, financing costs otherwise recoverable under the PISA and RESRAM, a lower base level of expenses included in trackers, and the net recovery for amounts associated with the reduction in sales volumes resulting from MEEIA programs (4 cents per share);

Current wording

•increased base rate revenues at Ameren Missouri effective July 9, 2023, pursuant to the June 2023 MoPSC electric rate order, partially offset by the net effect of amortization of previously deferred depreciation expense under the PISA and RESRAM, financing costs otherwise recoverable under the PISA and RESRAM, a lower base level of expenses included in trackers, and the net recovery for amounts associated with the reduction in sales volumes resulting from MEEIA programs (5 cents and 9 cents per share, respectively);

Previous wording

•increased retail electric sales volumes at Ameren Missouri, excluding the estimated effects of weather and customer energy-efficiency programs, partially offset by lower sales volumes due to milder winter temperatures in 2024 (estimated at 2 cents per share).

Current wording

•increased retail electric sales volumes at Ameren Missouri, primarily due to warmer spring and early summer temperatures in the three months ended June 30, 2024, and increased retail electric sales volumes, excluding the estimated effects of weather and customer energy-efficiency programs (estimated at 6 cents and 8 cents per share, respectively);

Previous wording

•increased rate base investments at Ameren Transmission, which increased earnings in this segment (3 cents per share); and

Current wording

•increased rate base investments at Ameren Transmission, which increased earnings in this segment (4 cents and 7 cents per share, respectively);

Previous wording

•increased allowance for equity funds used during construction and increased base rate revenues for the inclusion of previously deferred PISA and RESRAM interest charges pursuant to the June 2023 MoPSC electric rate order effective July 9, 2023, partially offset by increased interest charges resulting from lower deferrals related to infrastructure investments associated with the PISA and RESRAM, both at Ameren Missouri (3 cents per share);

Current wording

•increased allowance for equity funds used during construction and increased base rate revenues for the inclusion of previously deferred PISA and RESRAM interest charges pursuant to the June 2023 MoPSC electric rate order effective July 9, 2023, partially offset by increased interest charges resulting from lower deferrals related to infrastructure investments associated with the PISA and RESRAM, both at Ameren Missouri (3 cents and 6 cents per share, respectively);

Previous wording

•increased base rate revenues at Ameren Illinois Natural Gas effective November 28, 2023, pursuant to the November 2023 ICC natural gas rate order, partially offset by increased depreciation and amortization expenses included in base rates (4 cents per share);

Current wording

•increased base rate revenues at Ameren Illinois Natural Gas effective November 28, 2023, pursuant to the November 2023 ICC natural gas rate order, partially offset by increased depreciation and amortization expenses included in base rates (4 cents per share for the six months ended June 30, 2024); and

Previous wording

•a change in rate design at Ameren Illinois Natural Gas pursuant to the November 2023 ICC natural gas rate order that concentrates more revenues in the winter heating season due to an increase in volumetric rates, which increased earnings for the three months ended March 31, 2024, but is not expected to materially impact full year results (3 cents per share);

Current wording

•a change in rate design at Ameren Illinois Natural Gas pursuant to the November 2023 ICC natural gas rate order that concentrates more revenues in the winter heating season due to an increase in volumetric rates, which increased earnings for the three months ended March 31, 2024, but is not expected to materially impact full year results (2 cents per share for the six months ended June 30, 2024).

Previous wording

Earnings per diluted share were unfavorably affected in the three months ended March 31, 2024, compared to the year-ago period, by:

Current wording

Earnings per diluted share were unfavorably affected in the three and six months ended June 30, 2024, compared to the year-ago periods (except where a specific period is referenced), by:

Previous wording

•increased financing costs at Ameren Missouri primarily due to higher long term debt balances and interest rates (3 cents per share);

Current wording

•increased financing costs at Ameren Missouri and Ameren (parent), primarily due to higher long-term debt balances and interest rates (4 cents and 7 cents per share, respectively);

Previous wording

•increased other operations and maintenance expenses not subject to formula rates, riders, or trackers, primarily at Ameren Missouri, excluding a charge related to an increase in the estimated minimum cost of additional mitigation relief discussed above (3 cents per share);

Current wording

•increased other operations and maintenance expenses not subject to formula rates, riders, or trackers, primarily at Ameren Missouri, excluding a charge related to an increase in the estimated minimum cost of additional mitigation relief discussed below, largely due to the absence in 2024 of the recognition of regulatory assets for previously expensed costs approved for recovery pursuant to the June 2023 MoPSC rate order (3 cents and 6 cents per share, respectively);

Previous wording

•a charge recorded by Ameren Missouri, included in other operation and maintenance expenses, related to an increase in the estimated minimum cost of additional mitigation relief associated with NSR and Clean Air Act litigation applicable to the Rush Island Energy Center, see Note 9 - Commitments and Contingencies under Part 1, Item 1, of this report for more information (4 cents per share);

Current wording

•a charge recorded by Ameren Missouri, included in other operation and maintenance expenses, related to an increase in the estimated minimum cost of additional mitigation relief associated with NSR and Clean Air Act litigation applicable to the Rush Island Energy Center, see Note 9 - Commitments and Contingencies under Part 1, Item 1, of this report for more information (4 cents per share for the six months ended June 30, 2024);

Previous wording

•lower revenue at Ameren Illinois Electric Distribution due to a lower recognized ROE under the MYRP (2 cents per share);

Current wording

•lower revenue at Ameren Illinois Electric Distribution due to a lower recognized ROE under the MYRP (2 cents and 4 cents per share, respectively);

Previous wording

•increased weighted-average basic common shares outstanding resulting from issuances of common shares as detailed in Note 4 – Long-term Debt and Equity Financings under Part I, Item 1, of this report, and Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of the Form 10-K (2 cents per share); and

Current wording

•increased weighted-average basic common shares outstanding resulting from issuances of common shares as detailed in Note 4 – Long-term Debt and Equity Financings under Part I, Item 1, of this report, and Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of the Form 10-K (1 cent and 3 cents per share, respectively);

Previous wording

•increased income tax expense not subject to formula rates or riders, primarily due to a decrease in income tax benefits at Ameren (parent) related to stock-based compensation (4 cents per share);

Current wording

•increased income tax expense not subject to formula rates or riders, primarily due to a decrease in income tax benefits at Ameren (parent) related to stock-based compensation (2 cents per share for the six months ended June 30, 2024); and

Previous wording

•increased taxes other than income taxes, primarily at Ameren Missouri, largely resulting from the absence in 2024 of employee retention tax credits received under the Coronavirus Aid, Relief, and Economic Security Act (1 cent per share).

Current wording

•increased taxes other than income taxes, primarily at Ameren Missouri, largely resulting from the absence in 2024 of employee retention tax credits received under the Coronavirus Aid, Relief, and Economic Security Act (1 cent per share for the six months ended June 30, 2024).

Previous wording

The cents per share variances above are presented based on the weighted-average basic common shares outstanding in the three months ended March 31, 2023, and do not reflect the impact of dilution on earnings per share, unless otherwise noted. The amounts above other than variances related to income taxes have been presented net of income taxes using Ameren’s 2024 blended federal and state statutory tax rate of 26%. For additional details regarding the Ameren Companies’ results of operations, including explanations of Operating Revenues for both Electric Revenues and Natural Gas Revenues; Fuel and Purchased Power Expenses; Other Operations and Maintenance Expenses; Depreciation and Amortization Expenses; Taxes Other Than Income Taxes; Other Income, Net; Interest Charges; and Income Taxes, see the major headings below.

Current wording

The cents per share variances above are presented based on the weighted-average basic common shares outstanding in the three and six months ended June 30, 2023, and do not reflect the impact of dilution on earnings per share, unless otherwise noted. The amounts above other than variances related to income taxes have been presented net of income taxes using Ameren’s 2024 blended federal and state statutory tax rate of 26%. For additional details regarding the Ameren Companies’ results of operations, including explanations of Operating Revenues for both Electric Revenues and Natural Gas Revenues; Fuel and Purchased Power Expenses; Other Operations and Maintenance Expenses; Depreciation and Amortization Expenses; Taxes Other Than Income Taxes; Other Income, Net; Interest Charges; and Income Taxes, see the major headings below.

Previous wording

Below is Ameren’s table of income statement components by segment for the three months ended March 31, 2024 and 2023:

Current wording

Below is Ameren’s table of income statement components by segment for the three and six months ended June 30, 2024 and 2023:

Previous wording

Below is Ameren Illinois’ table of income statement components by segment for the three months ended March 31, 2024 and 2023:

Current wording

Below is Ameren Illinois’ table of income statement components by segment for the three and six months ended June 30, 2024 and 2023:

Previous wording

The following table presents the increases (decreases) by Ameren segment for electric and natural gas revenues, for the three months ended March 31, 2024, compared with the year-ago period:

Current wording

The following table presents the increases (decreases) by Ameren segment for electric and natural gas revenues for the three and six months ended June 30, 2024, compared with the year-ago periods:

Previous wording

(a)Includes an increase in transmission revenues of $17 million at Ameren Illinois for the three months ended March 31, 2024, compared with the year-ago period.

Current wording

(a)Includes an increase in transmission revenues of $23 million and $40 million at Ameren Illinois for the three and six months ended June 30, 2024, respectively, compared with the year-ago periods.

Previous wording

(b)For Ameren Illinois Electric Distribution and Ameren Transmission, base rates include increases or decreases in operating revenues related to the revenue requirement reconciliation adjustment under formula rates. For Ameren Missouri, base rates exclude an increase for the recovery of lost electric revenue, less the associated fuel and purchased power expenses, resulting from the MEEIA customer energy-efficiency programs and a decrease in base rates for RESRAM. These changes in Ameren Missouri base rates are included in the “Sales volumes and changes in customer usage patterns (excluding the estimated effects of weather and MEEIA)” and “Cost recovery mechanisms - offset in fuel and purchased power” line items, respectively.

Current wording

(b)For Ameren Illinois Electric Distribution and Ameren Transmission, base rates include increases or decreases in operating revenues related to the revenue requirement reconciliation adjustment under the MYRP and formula rates, respectively. For Ameren Missouri, base rates exclude an increase for the recovery of lost electric revenue, less the associated fuel and purchased power expenses, resulting from the MEEIA customer energy-efficiency programs and a decrease in base rates for RESRAM. These changes in Ameren Missouri base rates are included in the “Sales volumes and changes in customer usage patterns (excluding the estimated effects of weather and MEEIA)” and “Cost recovery mechanisms - offset in fuel and purchased power” line items, respectively.

Previous wording

(c)Represents the estimated variation resulting primarily from changes in cooling and heating degree-days on electric and natural gas demand compared with the year-ago period; this variation is based on temperature readings from the National Oceanic and Atmospheric Administration weather stations at local airports in our service territories.

Current wording

(c)Represents the estimated variation resulting primarily from changes in cooling and heating degree-days on electric and natural gas demand compared with the year-ago periods; this variation is based on temperature readings from National Oceanic and Atmospheric Administration weather stations at local airports in our service territories.

Previous wording

Ameren’s electric revenues decreased $226 million, or 14%, for the three months ended March 31, 2024, compared with the year-ago period, primarily due to decreased revenues at Ameren Missouri and Ameren Illinois Electric Distribution, partially offset by increased revenues at Ameren Transmission, as discussed below.

Current wording

Ameren’s electric revenues decreased $64 million, or 4%, and $290 million, or 9%, for thethree and six months ended June 30, 2024, respectively, compared with the year-ago periods, primarily due to decreased revenues at Ameren Missouri and Ameren Illinois Electric Distribution, partially offset by increased revenues at Ameren Transmission, as discussed below.

Previous wording

Ameren Transmission’s electric revenues increased $22 million, or 13%, for the three months ended March 31, 2024, compared with the year-ago period. Revenues were favorably affected by higher recoverable expenses (+$10 million), increased capital investment

Current wording

Ameren Transmission’s electric revenues increased $30 million, or 19%, and $52 million, or 16%, for the three and six months ended June 30, 2024, respectively, compared with the year-ago periods. Revenues were favorably affected by higher recoverable expenses

Previous wording

(+$9 million), as evidenced by a 14% increase in rate base used to calculate the revenue requirement, and increased facility rental revenues (+$3 million) related to ATXI’s transmission operations control center, which was placed in service in December 2023. ATXI provides affiliates with access to this facility. Rental revenues associated with this facility are affiliate transactions and eliminated in consolidation for Ameren’s consolidated financial statements. See Note 8 – Related-party Transactions under Part I, Item 1, of this report for additional information.

Current wording

(+$15 million and +$25 million, respectively), increased capital investment (+$11 million and +$20 million, respectively), as evidenced by a 14% increase in rate base used to calculate the revenue requirement, and increased facility rental revenues (+$4 million and +$7 million, respectively) related to ATXI’s transmission operations control center, which was placed in service in December 2023. ATXI provides affiliates with access to this facility. Rental revenues associated with this facility are affiliate transactions and eliminated in consolidation for Ameren’s consolidated financial statements. See Note 8 – Related-party Transactions under Part I, Item 1, of this report for additional information.

Previous wording

(+$5 million). Ameren Missouri’s 5% exposure to net energy cost variances under the FAC is included within “Off-system sales, capacity, and FAC revenues, net” and “Energy costs (excluding the estimated effect of weather)” in fuel and purchased power.

Current wording

•“Off-system sales, capacity and FAC revenues, net” decreased $96 million and $247 million, respectively, primarily due to lower capacity prices, (-$98 million and -$254 million, respectively), which were set by annual MISO auctions. Ameren Missouri’s 5% exposure to net energy cost variances under the FAC is included within “Off-system sales, capacity, and FAC revenues, net” and “Energy costs (excluding the estimated effect of weather)” in fuel and purchased power.