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AILIH Ameren Illinois

Filed: 6 Aug 21, 5:20pm
0001002910us-gaap:ElectricityMemberus-gaap:IntersegmentEliminationMemberaee:OtherMember2021-01-012021-06-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended June 30, 2021

OR
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from             to
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Commission
File Number
Exact name of registrant as specified in its charter;
State of Incorporation;
Address and Telephone Number
IRS Employer
Identification No.
1-14756Ameren Corporation43-1723446
(Missouri Corporation)
1901 Chouteau Avenue
St. Louis, Missouri 63103
(314) 621-3222
1-2967Union Electric Company43-0559760
(Missouri Corporation)
1901 Chouteau Avenue
St. Louis, Missouri 63103
(314) 621-3222
1-3672Ameren Illinois Company37-0211380
(Illinois Corporation)
10 Executive Drive
Collinsville, Illinois 62234
(618) 343-8150
Securities Registered Pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareAEENew York Stock Exchange



Indicate by check mark whether the registrants: (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.
Ameren CorporationYesNo
Union Electric CompanyYesNo
Ameren Illinois CompanyYesNo
Indicate by check mark whether each registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Ameren CorporationYesNo
Union Electric CompanyYesNo
Ameren Illinois CompanyYesNo
Indicate by check mark whether each registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Ameren CorporationLarge accelerated filerAccelerated filerNon-accelerated filer
Smaller reporting companyEmerging growth company
Union Electric CompanyLarge accelerated filerAccelerated filerNon-accelerated filer
Smaller reporting companyEmerging growth company
Ameren Illinois CompanyLarge accelerated filerAccelerated filerNon-accelerated filer
Smaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Ameren Corporation
Union Electric Company
Ameren Illinois Company
Indicate by check mark whether each registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Ameren CorporationYesNo
Union Electric CompanyYesNo
Ameren Illinois CompanyYesNo
The number of shares outstanding of each registrant’s classes of common stock as of July 30, 2021, was as follows:
RegistrantTitle of each class of common stockShares outstanding
Ameren CorporationCommon stock, $0.01 par value per share257,147,162 
Union Electric CompanyCommon stock, $5 par value per share, held by Ameren Corporation102,123,834 
Ameren Illinois CompanyCommon stock, no par value, held by Ameren Corporation25,452,373 

This combined Form 10-Q is separately filed by Ameren Corporation, Union Electric Company, and Ameren Illinois Company. Each registrant hereto is filing on its own behalf all of the information contained in this quarterly report that relates to such registrant. Each registrant hereto is not filing any information that does not relate to such registrant, and therefore makes no representation as to any such information.



TABLE OF CONTENTS



GLOSSARY OF TERMS AND ABBREVIATIONS
We use the words “our,” “we” or “us” with respect to certain information that relates to Ameren, Ameren Missouri, and Ameren Illinois, collectively. When appropriate, subsidiaries of Ameren Corporation are named specifically as their various business activities are discussed. Refer to the Form 10-K for a complete listing of glossary terms and abbreviations. Only new or significantly changed terms and abbreviations are included below.
ATM program – At-the-market equity distribution program.
Form 10-K – The combined Annual Report on Form 10-K for the year ended December 31, 2020, filed by the Ameren Companies with the SEC.
QTD – Three months ended June 30.
YTD – Six months ended June 30.
YoY – Compared with the year-ago period.
FORWARD-LOOKING STATEMENTS
Statements in this report not based on historical facts are considered “forward-looking” and, accordingly, involve risks and uncertainties that could cause actual results to differ materially from those discussed. Although such forward-looking statements have been made in good faith and are based on reasonable assumptions, there is no assurance that the expected results will be achieved. These statements include (without limitation) statements as to future expectations, beliefs, plans, projections, strategies, targets, estimates, objectives, events, conditions, and financial performance. In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, we are providing this cautionary statement to identify important factors that could cause actual results to differ materially from those anticipated. The following factors, in addition to those discussed within Risk Factors in the Form 10-K and in this report, and elsewhere in this report and in our other filings with the SEC, could cause actual results to differ materially from management expectations suggested in such forward-looking statements:
regulatory, judicial, or legislative actions, and any changes in regulatory policies and ratemaking determinations, that may change regulatory recovery mechanisms, such as those that may result from Ameren Missouri’s electric service and natural gas delivery service regulatory rate reviews filed with the MoPSC in March 2021, the July 2020 appeal filed by Ameren Missouri, Ameren Illinois, and ATXI challenging the refund period related to the FERC’s May 2020 order determining the allowed base ROE under the MISO tariff, the July 2020 appeal filed by Ameren Missouri, Ameren Illinois, and ATXI challenging the FERC’s rehearing denials in the transmission formula rate revision cases, Ameren Illinois’ electric distribution service rate reconciliation request filed with the ICC in April 2021, and Ameren Illinois’ annual electric energy-efficiency formula rate update filed with the ICC in May 2021;
the length and severity of the COVID-19 pandemic, and its impacts on our business continuity plans and our results of operations, financial position, and liquidity, including but not limited to changes in customer demand resulting in changes to sales volumes, customers’ payment for our services and their use of deferred payment arrangements, future regulatory or legislative actions that could require suspension of customer disconnections and/or late fees, among other things, for an extended period of time, the health and welfare of our workforce and contractors, supplier disruptions, delays in the completion of construction projects, which could impact our expected capital expenditures and rate base growth, Ameren Missouri’s ability to recover any forgone customer late fee revenues or incremental costs, our ability to meet customer energy-efficiency program goals and earn performance incentives related to those programs, changes in how we operate our business and increased data security risks as a result of the transition to remote working arrangements for a significant portion of our workforce, and our ability to access the capital markets on reasonable terms and when needed;
the effect and duration of Ameren Illinois’ election to opt in to the performance-based formula ratemaking framework for its electric distribution service, which, unless extended, could establish and allow for a reconciliation of electric distribution service rates through 2023, its participation in electric energy-efficiency programs, the impact of the direct relationship between Ameren Illinois’ ROE and the 30-year United States Treasury bond yields, and the potential return to traditional regulatory rate reviews for electric distribution service ratemaking;
the effect on Ameren Missouri’s investment plan and earnings if an extension to use PISA is not sought by Ameren Missouri or approved by the MoPSC;
the effect on Ameren Missouri of any customer rate caps pursuant to Ameren Missouri’s election to use the PISA, including an extension of use beyond 2023, if requested by Ameren Missouri and approved by the MoPSC;
the effects of changes in federal, state, or local laws and other governmental actions, including monetary, fiscal, and energy policies;
the effects of changes in federal, state, or local tax laws, regulations, interpretations, or rates, and challenges to the tax positions taken by the Ameren Companies, if any, as well as resulting effects on customer rates;
the effects on energy prices and demand for our services resulting from technological advances, including advances in customer energy efficiency, electric vehicles, electrification of various industries, energy storage, and private generation sources, which generate electricity at the site of consumption and are becoming more cost-competitive;
1


the effectiveness of Ameren Missouri’s customer energy-efficiency programs and the related revenues and performance incentives earned under its MEEIA programs;
Ameren Illinois’ ability to achieve the performance standards applicable to its electric distribution business and the FEJA electric customer energy-efficiency goals and the resulting impact on its allowed ROE;
our ability to control costs and make substantial investments in our businesses, including our ability to recover costs, investments, and our allowed ROEs within frameworks established by our regulators, while maintaining affordability of our services for our customers;
the cost and availability of fuel, such as low-sulfur coal, natural gas, and enriched uranium used to produce electricity; the cost and availability of purchased power, zero emission credits, renewable energy credits, emission allowances, and natural gas for distribution; and the level and volatility of future market prices for such commodities and credits;
disruptions in the delivery of fuel, failure of our fuel suppliers to provide adequate quantities or quality of fuel, or lack of adequate inventories of fuel, including nuclear fuel assemblies from the one NRC-licensed supplier of Ameren Missouri’s Callaway Energy Center assemblies;
the cost and availability of transmission capacity for the energy generated by Ameren Missouri’s energy centers or required to satisfy Ameren Missouri’s energy sales;
the effectiveness of our risk management strategies and our use of financial and derivative instruments;
the ability to obtain sufficient insurance, including insurance for Ameren Missouri’s nuclear and coal-fired energy centers, or, in the absence of insurance, the ability to timely recover uninsured losses from our customers;
the impact of cyberattacks on us or our suppliers, which could, among other things, result in the loss of operational control of energy centers and electric and natural gas transmission and distribution systems and/or the loss of data, such as customer, employee, financial, and operating system information;
business and economic conditions, which have been affected by, and will be affected by the length and severity of, the COVID-19 pandemic, including the impact of such conditions on interest rates;
disruptions of the capital markets, deterioration in credit metrics of the Ameren Companies, or other events that may have an adverse effect on the cost or availability of capital, including short-term credit and liquidity;
the actions of credit rating agencies and the effects of such actions, including any impacts on our credit ratings that may result from the economic conditions of the COVID-19 pandemic;
the inability of our counterparties to meet their obligations with respect to contracts, credit agreements, and financial instruments, including as it relates to the construction and acquisition of electric and natural gas utility infrastructure and the ability of counterparties to complete projects which is dependent upon the availability of necessary materials and equipment, including those that are affected by disruptions in the global supply chain caused by the COVID-19 pandemic;
the impact of weather conditions and other natural phenomena on us and our customers, including the impact of system outages and the level of wind and solar resources;
the construction, installation, performance, and cost recovery of generation, transmission, and distribution assets;
the effects of failures of electric generation, electric and natural gas transmission or distribution, or natural gas storage facilities systems and equipment, which could result in unanticipated liabilities or unplanned outages;
the operation of Ameren Missouri’s Callaway Energy Center, including planned and unplanned outages, as well as the ability to recover costs associated with such outages and the impact of such outages on off-system sales and purchased power, among other things;
Ameren Missouri’s ability to recover the remaining investment and decommissioning costs associated with the retirement of an energy center, as well as the ability to earn a return on that remaining investment and those decommissioning costs;
the impact of current environmental laws and new, more stringent, or changing requirements, including those related to NSR and CO2, other emissions and discharges, cooling water intake structures, CCR, energy efficiency, and wildlife protection, that could limit or terminate the operation of certain of Ameren Missouri’s energy centers, increase our operating costs or investment requirements, result in an impairment of our assets, cause us to sell our assets, reduce our customers’ demand for electricity or natural gas, or otherwise have a negative financial effect;
the impact of complying with renewable energy standards in Missouri and Illinois and with the zero emission standard in Illinois;
Ameren Missouri’s ability to construct and/or acquire wind, solar, and other renewable energy generation facilities, retire energy centers, and implement new or existing customer energy-efficiency programs, including any such construction, acquisition, retirement, or implementation in connection with its Smart Energy Plan, the 2020 IRP, or our emissions reduction goals, and to recover its cost of investment, related return, and, in the case of customer energy-efficiency programs, any lost margins in a timely manner, which is affected by the ability to obtain all necessary regulatory and project approvals, including certificates of convenience and necessity from the MoPSC or any other required approvals for the addition of renewable resources;
the availability of federal production and investment tax credits related to renewable energy and Ameren Missouri’s ability to use such credits; the cost of wind, solar, and other renewable generation and storage technologies; and our ability to obtain timely interconnection agreements with the MISO or other RTOs at an acceptable cost for each facility;
advancements in carbon-free generation and storage technologies, and constructive federal and state energy and economic policies with respect to those technologies;
labor disputes, work force reductions, changes in future wage and employee benefits costs, including those resulting from changes in discount rates, mortality tables, returns on benefit plan assets, and other assumptions;
2


the impact of negative opinions of us or our utility services that our customers, investors, legislators, or regulators may have or develop, which could result from a variety of factors, including failures in system reliability, failure to implement our investment plans or to protect sensitive customer information, increases in rates, negative media coverage, or concerns about environmental, social, and/or governance practices;
the impact of adopting new accounting guidance;
the effects of strategic initiatives, including mergers, acquisitions, and divestitures;
legal and administrative proceedings; and
acts of sabotage, war, terrorism, or other intentionally disruptive acts.
New factors emerge from time to time, and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement. Given these uncertainties, undue reliance should not be placed on these forward-looking statements. Except to the extent required by the federal securities laws, we undertake no obligation to update or revise publicly any forward-looking statements to reflect new information or future events.
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.

AMEREN CORPORATION
CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME
(Unaudited) (In millions, except per share amounts)
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Operating Revenues:
Electric$1,284 $1,237 $2,440 $2,357 
Natural gas188 161 598 481 
Total operating revenues1,472 1,398 3,038 2,838 
Operating Expenses:
Fuel173 119 238 259 
Purchased power129 109 320 243 
Natural gas purchased for resale65 42 230 149 
Other operations and maintenance412 384 832 822 
Depreciation and amortization285 271 566 526 
Taxes other than income taxes122 119 250 244 
Total operating expenses1,186 1,044 2,436 2,243 
Operating Income286 354 602 595 
Other Income, Net49 48 95 69 
Interest Charges96 108 196 201 
Income Before Income Taxes239 294 501 463 
Income Taxes31 50 58 71 
Net Income208 244 443 392 
Less: Net Income Attributable to Noncontrolling Interests1 3 
Net Income Attributable to Ameren Common Shareholders$207 $243 $440 $389 
Net Income$208 $244 $443 $392 
Other Comprehensive Income (Loss), Net of Taxes
Pension and other postretirement benefit plan activity, net of income taxes of $0, $0, $0, and $0, respectively(1)0 
Comprehensive Income207 244 443 393 
Less: Comprehensive Income Attributable to Noncontrolling Interests1 3 
Comprehensive Income Attributable to Ameren Common Shareholders$206 $243 $440 $390 
Earnings per Common Share – Basic$0.81 $0.99 $1.72 $1.58 
Earnings per Common Share – Diluted$0.80 $0.98 $1.71 $1.57 
Weighted-average Common Shares Outstanding – Basic256.1 246.9 255.2 246.7 
Weighted-average Common Shares Outstanding – Diluted257.2 247.9 256.5 248.0 
The accompanying notes are an integral part of these consolidated financial statements.
4


AMEREN CORPORATION
CONSOLIDATED BALANCE SHEET
(Unaudited) (In millions, except per share amounts)
June 30, 2021December 31, 2020
ASSETS
Current Assets:
Cash and cash equivalents$99 $139 
Accounts receivable – trade (less allowance for doubtful accounts of $42 and $50, respectively)397 415 
Unbilled revenue339 269 
Miscellaneous accounts receivable105 65 
Inventories527 521 
Restricted cash131 17 
Current regulatory assets353 109 
Other current assets165 118 
Total current assets2,116 1,653 
Property, Plant, and Equipment, Net28,020 26,807 
Investments and Other Assets:
Nuclear decommissioning trust fund1,070 982 
Goodwill411 411 
Regulatory assets1,272 1,100 
Other assets1,027 1,077 
Total investments and other assets3,780 3,570 
TOTAL ASSETS$33,916 $32,030 
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term debt$8 $
Short-term debt431 490 
Accounts and wages payable779 958 
Taxes accrued178 82 
Interest accrued129 114 
Current regulatory liabilities238 121 
Other current liabilities414 407 
Total current liabilities2,177 2,180 
Long-term Debt, Net12,492 11,078 
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes and tax credits, net3,309 3,211 
Regulatory liabilities5,258 5,282 
Asset retirement obligations712 696 
Pension and other postretirement benefits39 37 
Other deferred credits and liabilities447 466 
Total deferred credits and other liabilities9,765 9,692 
Commitments and Contingencies (Notes 2, 9, and 10)0
Ameren Corporation Shareholders’ Equity:
Common stock, $.01 par value, 400.0 shares authorized – shares outstanding of 257.1 and 253.3, respectively3 
Other paid-in capital, principally premium on common stock6,436 6,179 
Retained earnings2,915 2,757 
Accumulated other comprehensive loss(1)(1)
Total Ameren Corporation shareholders’ equity9,353 8,938 
Noncontrolling Interests129 142 
Total equity9,482 9,080 
TOTAL LIABILITIES AND EQUITY$33,916 $32,030 
The accompanying notes are an integral part of these consolidated financial statements.
5


AMEREN CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited) (In millions)
 Six Months Ended June 30,
 20212020
Cash Flows From Operating Activities:
Net income$443 $392 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization596 532 
Amortization of nuclear fuel20 45 
Amortization of debt issuance costs and premium/discounts11 11 
Deferred income taxes and investment tax credits, net59 68 
Allowance for equity funds used during construction(16)(13)
Stock-based compensation costs11 11 
Other2 
Changes in assets and liabilities:
Receivables(92)(161)
Inventories(5)(19)
Accounts and wages payable(208)(193)
Taxes accrued104 108 
Regulatory assets and liabilities(441)(87)
Assets, other(66)(9)
Liabilities, other17 
Pension and other postretirement benefits1 (5)
Net cash provided by operating activities436 694 
Cash Flows From Investing Activities:
Capital expenditures(1,346)(1,228)
Wind generation expenditures(417)
Nuclear fuel expenditures(4)(56)
Purchases of securities – nuclear decommissioning trust fund(203)(153)
Sales and maturities of securities – nuclear decommissioning trust fund208 121 
Other2 
Net cash used in investing activities(1,760)(1,315)
Cash Flows From Financing Activities:
Dividends on common stock(282)(244)
Dividends paid to noncontrolling interest holders(3)(3)
Short-term debt, net(59)(320)
Maturities of long-term debt0 (85)
Issuances of long-term debt1,423 1,263 
Issuances of common stock258 27 
Redemptions of Ameren Illinois preferred stock(13)
Employee payroll taxes related to stock-based compensation(17)(20)
Debt issuance costs(13)(10)
Other(4)
Net cash provided by financing activities1,290 608 
Net change in cash, cash equivalents, and restricted cash(34)(13)
Cash, cash equivalents, and restricted cash at beginning of year301 176 
Cash, cash equivalents, and restricted cash at end of period$267 $163 
The accompanying notes are an integral part of these consolidated financial statements.
6


AMEREN CORPORATION
CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY
(Unaudited) (In millions, except per share amounts)
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Common Stock$3 $$3 $
Other Paid-in Capital:
Beginning of period6,295 5,695 6,179 5,694 
Settlement of forward sale agreement through common shares issuance0 113 
Shares issued under the ATM program121 121 
Shares issued under the DRPlus and 401(k) plan12 14 24 27 
Stock-based compensation activity8 (1)(5)
Other paid-in capital, end of period6,436 5,716 6,436 5,716 
Retained Earnings:
Beginning of period2,850 2,404 2,757 2,380 
Net income attributable to Ameren common shareholders207 243 440 389 
Dividends on common stock(142)(122)(282)(244)
Retained earnings, end of period2,915 2,525 2,915 2,525 
Accumulated Other Comprehensive Loss:
Deferred retirement benefit costs, beginning of period0 (16)(1)(17)
Change in deferred retirement benefit costs(1)0 
Deferred retirement benefit costs, end of period(1)(16)(1)(16)
Total accumulated other comprehensive loss, end of period(1)(16)(1)(16)
Total Ameren Corporation Shareholders’ Equity$9,353 $8,227 $9,353 $8,227 
Noncontrolling Interests:
Beginning of period129 142 142 142 
Net income attributable to noncontrolling interest holders1 3 
Dividends paid to noncontrolling interest holders(1)(1)(3)(3)
Redemptions of Ameren Illinois preferred stock0 (13)
Noncontrolling interests, end of period129 142 129 142 
Total Equity$9,482 $8,369 $9,482 $8,369 
Common stock shares outstanding at beginning of period255.5 246.9 253.3 246.2 
Shares issued under forward sale agreement0 1.6 
Shares issued under the ATM program1.4 1.4 
Shares issued under the DRPlus and 401(k) plan0.2 0.2 0.3 0.4 
Shares issued for stock-based compensation0 0.5 0.5 
Common stock shares outstanding at end of period257.1 247.1 257.1 247.1 
Dividends per common share$0.550 $0.495 $1.100 $0.990 
The accompanying notes are an integral part of these consolidated financial statements.
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UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
STATEMENT OF INCOME
(Unaudited) (In millions)
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Operating Revenues:
Electric$789 $771 $1,430 $1,402 
Natural gas20 21 83 70 
Total operating revenues809 792 1,513 1,472 
Operating Expenses:
Fuel173 119 238 259 
Purchased power50 37 138 76 
Natural gas purchased for resale5 36 24 
Other operations and maintenance218 202 443 441 
Depreciation and amortization157 155 313 294 
Taxes other than income taxes85 83 162 162 
Total operating expenses688 602 1,330 1,256 
Operating Income121 190 183 216 
Other Income, Net24 25 47 29 
Interest Charges36 50 75 90 
Income Before Income Taxes109 165 155 155 
Income Taxes (Benefit)(3)12 (5)11 
Net Income112 153 160 144 
Preferred Stock Dividends1 2 
Net Income Available to Common Shareholder$111 $152 $158 $142 
The accompanying notes as they relate to Ameren Missouri are an integral part of these financial statements.
8


UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
BALANCE SHEET
(Unaudited) (In millions, except per share amounts)
June 30, 2021December 31, 2020
ASSETS
Current Assets:
Cash and cash equivalents$0 $136 
Advances to money pool92 139 
Accounts receivable – trade (less allowance for doubtful accounts of $16 and $16, respectively)168 166 
Accounts receivable – affiliates49 57 
Unbilled revenue224 133 
Miscellaneous accounts receivable92 36 
Inventories395 386 
Current regulatory assets148 60 
Other current assets106 79 
Total current assets1,274 1,192 
Property, Plant, and Equipment, Net14,690 13,879 
Investments and Other Assets:
Nuclear decommissioning trust fund1,070 982 
Regulatory assets430 347 
Other assets361 383 
Total investments and other assets1,861 1,712 
TOTAL ASSETS$17,825 $16,783 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Current maturities of long-term debt$8 $
Accounts and wages payable403 501 
Accounts payable – affiliates85 46 
Taxes accrued137 42 
Interest accrued67 53 
Current asset retirement obligations59 60 
Other current liabilities161 123 
Total current liabilities920 833 
Long-term Debt, Net5,618 5,096 
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes and tax credits, net1,789 1,742 
Regulatory liabilities3,138 3,110 
Asset retirement obligations707 691 
Pension and other postretirement benefits31 35 
Other deferred credits and liabilities71 66 
Total deferred credits and other liabilities5,736 5,644 
Commitments and Contingencies (Notes 2, 8, 9, and 10)00
Shareholders’ Equity:
Common stock, $5 par value, 150.0 shares authorized – 102.1 shares outstanding511 511 
Other paid-in capital, principally premium on common stock2,701 2,518 
Preferred stock80 80 
Retained earnings2,259 2,101 
Total shareholders’ equity5,551 5,210 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$17,825 $16,783 
The accompanying notes as they relate to Ameren Missouri are an integral part of these financial statements.
9


UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
STATEMENT OF CASH FLOWS
(Unaudited) (In millions)
Six Months Ended June 30,
20212020
Cash Flows From Operating Activities:
Net income$160 $144 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization343 300 
Amortization of nuclear fuel20 45 
Amortization of debt issuance costs and premium/discounts3 
Deferred income taxes and investment tax credits, net(2)14 
Allowance for equity funds used during construction(10)(8)
Other6 
Changes in assets and liabilities:
Receivables(135)(149)
Inventories(8)(32)
Accounts and wages payable(172)(175)
Taxes accrued167 151 
Regulatory assets and liabilities(165)(13)
Assets, other(7)15 
Liabilities, other19 (10)
Pension and other postretirement benefits5 
Net cash provided by operating activities224 292 
Cash Flows From Investing Activities:
Capital expenditures(684)(516)
Wind generation expenditures(417)
Nuclear fuel expenditures(4)(56)
Purchases of securities – nuclear decommissioning trust fund(203)(153)
Sales and maturities of securities – nuclear decommissioning trust fund208 121 
Money pool advances, net47 
Net cash used in investing activities(1,053)(604)
Cash Flows From Financing Activities:
Dividends on preferred stock(2)(2)
Short-term debt, net0 (155)
Money pool borrowings, net0 65 
Maturities of long-term debt0 (85)
Issuances of long-term debt524 465 
Capital contribution from parent183 — 
Debt issuance costs(4)(4)
Net cash provided by financing activities701 284 
Net change in cash, cash equivalents, and restricted cash(128)(28)
Cash, cash equivalents, and restricted cash at beginning of year145 39 
Cash, cash equivalents, and restricted cash at end of period$17 $11 
The accompanying notes as they relate to Ameren Missouri are an integral part of these financial statements.
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UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
STATEMENT OF SHAREHOLDERS’ EQUITY
(Unaudited) (In millions)
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Common Stock$511 $511 $511 $511 
Other Paid-in Capital:
Beginning of period2,631 2,027 2,518 2,027 
Capital contributions from parent70 183 
Other paid-in capital, end of period2,701 2,027 2,701 2,027 
Preferred Stock80 80 80 80 
Retained Earnings:
Beginning of period2,148 1,721 2,101 1,731 
Net income112 153 160 144 
Dividends on preferred stock(1)(1)(2)(2)
Retained earnings, end of period2,259 1,873 2,259 1,873 
Total Shareholders’ Equity$5,551 $4,491 $5,551 $4,491 
The accompanying notes as they relate to Ameren Missouri are an integral part of these financial statements.
11



AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
STATEMENT OF INCOME
(Unaudited) (In millions)
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Operating Revenues:
Electric$461 $427 $937 $879 
Natural gas168 140 515 411 
Total operating revenues629 567 1,452 1,290 
Operating Expenses:
Purchased power84 76 190 174 
Natural gas purchased for resale60 36 194 125 
Other operations and maintenance193 182 387 381 
Depreciation and amortization117 107 232 214 
Taxes other than income taxes34 32 80 74 
Total operating expenses488 433 1,083 968 
Operating Income141 134 369 322 
Other Income, Net16 17 30 28 
Interest Charges40 38 82 77 
Income Before Income Taxes117 113 317 273 
Income Taxes31 29 81 68 
Net Income86 84 236 205 
Preferred Stock Dividends0 1 
Net Income Available to Common Shareholder$86 $83 $235 $203 
The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.
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AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
BALANCE SHEET
(Unaudited) (In millions)
June 30, 2021December 31, 2020
ASSETS
Current Assets:
Cash and cash equivalents$96 $
Advances to money pool20 
Accounts receivable – trade (less allowance for doubtful accounts of $26 and $34, respectively)212 234 
Accounts receivable – affiliates57 64 
Unbilled revenue115 136 
Miscellaneous accounts receivable4 12 
Inventories132 135 
Restricted cash122 
Current regulatory assets199 37 
Other current assets38 23 
Total current assets995 647 
Property, Plant, and Equipment, Net11,597 11,201 
Investments and Other Assets:
Goodwill411 411 
Regulatory assets822 742 
Other assets491 534 
Total investments and other assets1,724 1,687 
TOTAL ASSETS$14,316 $13,535 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Borrowings from money pool$0 $19 
Accounts and wages payable314 363 
Accounts payable – affiliates62 51 
Customer deposits69 74 
Current regulatory liabilities197 88 
Other current liabilities205 221 
Total current liabilities847 816 
Long-term Debt, Net4,391 3,946 
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes and investment tax credits, net1,463 1,367 
Regulatory liabilities2,006 2,063 
Pension and other postretirement benefits68 69 
Environmental remediation46 57 
Other deferred credits and liabilities237 251 
Total deferred credits and other liabilities3,820 3,807 
Commitments and Contingencies (Notes 2, 8 and 9)00
Shareholders' Equity:
Common stock, 0 par value, 45.0 shares authorized – 25.5 shares outstanding0 
Other paid-in capital2,722 2,652 
Preferred stock49 62 
Retained earnings2,487 2,252 
Total shareholders' equity5,258 4,966 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$14,316 $13,535 
The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.
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AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
STATEMENT OF CASH FLOWS
(Unaudited) (In millions)
Six Months Ended June 30,
20212020
Cash Flows From Operating Activities:
Net income$236 $205 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization231 214 
Amortization of debt issuance costs and premium/discounts6 
Deferred income taxes and investment tax credits, net84 40 
Other(1)(5)
Changes in assets and liabilities:
Receivables43 (13)
Inventories3 13 
Accounts and wages payable(23)(12)
Taxes accrued36 (32)
Regulatory assets and liabilities(273)(65)
Assets, other(46)(15)
Liabilities, other(2)12 
Pension and other postretirement benefits(8)(8)
Net cash provided by operating activities286 340 
Cash Flows From Investing Activities:
Capital expenditures(646)(661)
Money pool advances, net(20)
Other(2)
Net cash used in investing activities(668)(659)
Cash Flows From Financing Activities:
Dividends on preferred stock(1)(2)
Short-term debt, net0 (12)
Money pool borrowings, net(19)
Issuances of long-term debt449 
Capital contributions from parent70 350 
Redemption of preferred stock(13)
Debt issuance costs(5)
Other(4)
Net cash provided by financing activities477 336 
Net change in cash, cash equivalents, and restricted cash95 17 
Cash, cash equivalents and restricted cash at beginning of year147 125 
Cash, cash equivalents, and restricted cash at end of period$242 $142 
The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.
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AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
STATEMENT OF SHAREHOLDERS’ EQUITY
(Unaudited) (In millions)
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Common Stock$0 $$0 $
Other Paid-in Capital:
Beginning of period2,692 2,288 2,652 2,188 
Capital contributions from parent30 250 70 350 
Other paid-in capital, end of period2,722 2,538 2,722 2,538 
Preferred Stock:
Beginning of period49 62 62 62 
Redemptions of preferred stock0 (13)
Preferred stock, end of period49 62 49 62 
Retained Earnings:
Beginning of period2,401 2,002 2,252 1,882 
Net income86 84 236 205 
Dividends on preferred stock0 (1)(1)(2)
Retained earnings, end of period2,487 2,085 2,487 2,085 
Total Shareholders’ Equity$5,258 $4,685 $5,258 $4,685 
The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.
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AMEREN CORPORATION (Consolidated)
UNION ELECTRIC COMPANY (d/b/a Ameren Missouri)
AMEREN ILLINOIS COMPANY (d/b/a Ameren Illinois)
COMBINED NOTES TO FINANCIAL STATEMENTS
(Unaudited)
June 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General
Ameren, headquartered in St. Louis, Missouri, is a public utility holding company whose primary assets are its equity interests in its subsidiaries. Ameren’s subsidiaries are separate, independent legal entities with separate businesses, assets, and liabilities. Dividends on Ameren’s common stock and the payment of expenses by Ameren depend on distributions made to it by its subsidiaries. Ameren’s principal subsidiaries are listed below. Ameren has other subsidiaries that conduct other activities, such as providing shared services.
Union Electric Company, doing business as Ameren Missouri, operates a rate-regulated electric generation, transmission, and distribution business and a rate-regulated natural gas distribution business in Missouri.
Ameren Illinois Company, doing business as Ameren Illinois, operates rate-regulated electric transmission, electric distribution, and natural gas distribution businesses in Illinois.
ATXI operates a FERC rate-regulated electric transmission business in the MISO.
The COVID-19 pandemic continues to affect our results of operations, financial position, and liquidity, but we continue to expect gradual improvement in sales volumes in 2021, compared to 2020. In the first six months of 2021, our sales volumes, excluding the estimated effects of weather and customer energy-efficiency programs, increased compared to the same period in 2020. However, our accounts receivable balances that were past due or that were a part of a deferred payment arrangement are higher than normal historical levels, as customer payments have been affected. The continued effect of the COVID-19 pandemic on our results of operations, financial position, and liquidity in subsequent periods will depend on its severity and longevity, future regulatory or legislative actions with respect thereto, and the resulting impact on business, economic, and capital market conditions. In general, restrictions on social activities and nonessential businesses implemented in our service territories in 2020 have been relaxed. However, additional restrictions may be imposed in the future.
We continue to assess the impacts the COVID-19 pandemic is having on our businesses, including but not limited to impacts on our liquidity; demand for residential, commercial, and industrial electric and natural gas services; changes in deferred payment arrangements for customers; the timing and extent to which recovery of incremental costs incurred, net of savings, and forgone customer late fee revenues at Ameren Missouri is allowed by the MoPSC; changes in our ability to disconnect customers for nonpayment; bad debt expense; supply chain operations; the availability of our employees and contractors; counterparty credit; capital construction; infrastructure operations and maintenance; energy-efficiency programs; and pension valuations. In March 2021, the MoPSC approved accounting authority orders that allowed Ameren Missouri to accumulate $9 million of certain costs incurred related to the COVID-19 pandemic, net of savings, as well as forgone customer late fees and reconnection fee revenues from March 2020 to March 2021, for potential recovery in the current electric and natural gas service regulatory rate reviews. While the revenues from Ameren Illinois’ electric distribution business, residential and small nonresidential customers of Ameren Illinois’ natural gas distribution business, and Ameren Illinois’ and ATXI’s electric transmission businesses are decoupled from changes in sales volumes, earnings at Ameren Missouri and those associated with Ameren Illinois’ large nonresidential natural gas customers are exposed to such changes. Regarding uncollectible accounts receivable, Ameren Illinois’ electric distribution and natural gas distribution businesses have bad debt riders, which provide for recovery of bad debt write-offs, net of any subsequent recoveries. Ameren Missouri does not have a bad debt rider or tracker, and thus its earnings are exposed to increases in bad debt expense, absent regulatory relief. However, Ameren Missouri does not expect a material impact to earnings from increases in bad debt expense. As of June 30, 2021, accounts receivable balances that were 30 days or greater past due or that were a part of a deferred payment arrangement represented 26%, 17%, and 35%, or $116 million, $32 million, and $84 million, of Ameren’s, Ameren Missouri’s, and Ameren Illinois’ customer trade receivables before allowance for doubtful accounts, respectively. In comparison, as of June 30, 2019, these percentages were 17%, 11%, and 25%, or $83 million, $24 million, and $59 million, for Ameren, Ameren Missouri, and Ameren Illinois, respectively. For information regarding Ameren Illinois’ suspension and subsequent reinstatement of customer disconnections and late fee charges for nonpayment and Ameren Missouri’s accounting authority orders related to the COVID-19 pandemic, see Note 2 – Rate and Regulatory Matters below.
Ameren’s financial statements are prepared on a consolidated basis and therefore include the accounts of its majority-owned subsidiaries. All intercompany transactions have been eliminated. 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)
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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 for 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 June 30, 2021, and December 31, 2020, Ameren had unconsolidated variable interests as a limited partner in various equity method investments, totaling $48 million and $37 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 June 30, 2021, the maximum exposure to loss related to these variable interests is limited to the investment in these partnerships of $48 million plus associated outstanding funding commitments of $30 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 June 30, 2021, the cash surrender value of company-owned life insurance at Ameren and Ameren Illinois was $279 million (December 31, 2020 – $272 million) and $119 million (December 31, 2020 – $115 million), respectively, while total borrowings against the policies were $112 million (December 31, 2020 – $107 million) at both Ameren and Ameren Illinois. Ameren and Ameren Illinois have the right to offset the borrowings against the cash surrender value of the policies and, consequently, present the net asset in “Other assets” on their respective balance sheets.
NOTE 2 – RATE AND REGULATORY MATTERS
Below is a summary of updates to significant regulatory proceedings and related legal proceedings. See Note 2 – Rate and Regulatory Matters under Part II, Item 8, of the Form 10-K for additional information and a summary of our regulatory frameworks. We are unable to predict the ultimate outcome of these matters, the timing of final decisions of the various agencies and courts, or the impact on our results of operations, financial position, or liquidity.
Missouri
2021 Electric Service Regulatory Rate Review
In March 2021, Ameren Missouri filed a request with the MoPSC seeking approval to increase its annual revenues for electric service by $299 million. The electric rate increase request is based on a 9.9% ROE, a capital structure composed of 51.9% common equity, a rate base of $10.0 billion, and a test year ended December 31, 2020, with certain pro-forma adjustments expected through a true-up date of September 30, 2021. Ameren Missouri also requested the continued use of the FAC and trackers for pension and postretirement benefits, uncertain income tax positions, and certain excess deferred income taxes that the MoPSC previously authorized in earlier electric rate orders. Additionally, Ameren Missouri requested to recover certain estimated costs associated with the Meramec Energy Center, which is expected to be retired in 2022, over a five-year period. Ameren Missouri requested the use of a tracker for any variances between certain costs collected in customer rates associated with the Meramec Energy Center and actual recoverable costs incurred after the date new rates become effective, which would be considered for recovery or refund in a future electric regulatory rate review. The electric rate increase request reflects the following:
increased infrastructure investments made under Ameren Missouri’s Smart Energy Plan;
the impact of the transition to a cleaner generation portfolio, including advancing the retirement dates of the Sioux and Rush Island energy centers consistent with Ameren Missouri’s 2020 IRP and 700 MWs of wind generation investment for the High Prairie and Atchison renewable energy centers, which are mitigated by reductions resulting from the request to recover certain Meramec Energy Center costs over a five-year period and the associated tracker;
decreased weather-normalized customer sales volumes; and
increased pension and other post-retirement benefits and tax amortization expenses, partially offset by decreased other operations and maintenance expenses.
The MoPSC proceeding relating to the proposed electric service rate changes will take place over a period of up to 11 months, with a decision by the MoPSC expected by February 2022 and new rates effective by late February 2022. Ameren Missouri cannot predict the level of any electric service rate change the MoPSC may approve, whether the requested regulatory recovery mechanisms will be approved, or whether any rate change that may eventually be approved will be sufficient for Ameren Missouri to recover its costs and earn a reasonable return on its investments when the rate change goes into effect.
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Atchison Renewable Energy Center
In January 2021, Ameren Missouri acquired a 300-MW wind generation project located in northwestern Missouri. As of June 30, 2021, Ameren Missouri had placed the project in service as the Atchison Renewable Energy Center. The purchase price of the energy center was approximately $500 million, including an immaterial amount of transaction costs. The Atchison Renewable Energy Center will support Ameren Missouri’s compliance with the Missouri renewable energy standard.
2021 Natural Gas Delivery Service Regulatory Rate Review
In March 2021, Ameren Missouri filed a request with the MoPSC seeking approval to increase its annual revenues for natural gas delivery service by $9 million. The natural gas rate increase request is based on a 9.8% ROE, a capital structure composed of 51.9% common equity, a rate base of $310 million, and a test year ended December 31, 2020, with certain pro-forma adjustments expected through a true-up date of September 30, 2021. The request includes the continued use of the PGA, ISRS, and DCA and trackers for pension and other postretirement benefits and certain excess deferred taxes that the MoPSC previously authorized in earlier natural gas rate orders.
The MoPSC proceeding relating to the proposed natural gas delivery service rate changes will take place over a period of up to 11 months, with a decision by the MoPSC expected by February 2022 and new rates effective by late February 2022. Ameren Missouri cannot predict the level of any natural gas delivery service rate change the MoPSC may approve, or whether any rate change that may eventually be approved will be sufficient for Ameren Missouri to recover its costs and earn a reasonable return on its investments when the rate change goes into effect.
Accounting Authority Orders Related to COVID-19 Pandemic Costs
In March 2021, the MoPSC issued orders approving nonunanimous stipulation and agreements related to Ameren Missouri’s electric and natural gas service accounting authority order requests. The orders allowed Ameren Missouri to accumulate $9 million of certain costs incurred related to the COVID-19 pandemic, net of cost savings, as well as forgone customer late fee and reconnection fee revenues from March 2020 to March 2021, for potential recovery in the electric and natural gas service regulatory rate reviews discussed above. In March 2021, Ameren Missouri deferred other operations and maintenance expenses of $5 million as a regulatory asset related to the accounting authority orders. If approved for recovery, Ameren Missouri would recognize the remaining $4 million associated with forgone customer late fee and reconnection fee revenue when billed to customers.
Illinois
Electric Distribution Service Rates
In April 2021, Ameren Illinois filed its annual electric distribution service performance-based formula rate update to be used for 2022 rates with the ICC. In July 2021, Ameren Illinois filed a revised request seeking to increase its annual revenues for electric distribution service by $60 million. This update reflects an increase to the annual performance-based formula rate based on 2020 actual recoverable costs and expected net plant additions for 2021, an increase to include the 2020 revenue requirement reconciliation adjustment, and an increase for the conclusion of the 2019 revenue requirement reconciliation adjustment, which will be fully refunded to customers in 2021, consistent with the ICC’s December 2020 annual update filing order. In June 2021, the ICC staff submitted its calculation of the revenue requirement included in Ameren Illinois’ update filing, recommending a $54 million increase in Ameren Illinois’ electric distribution service rates, which is based on a lower percentage of common equity used in the capital structure than requested by Ameren Illinois, partially offset by the recovery of an expense in 2022 rates that Ameren Illinois had requested to recover over five years. An ICC decision in this proceeding is expected by December 2021, with new rates effective January 2022.
Electric Distribution Service Rate Reconciliation Tariff
In March 2021, the ICC issued an order approving Ameren Illinois’ requested tariff to reconcile its electric distribution service revenue requirement once Ameren Illinois ceases to update customer rates under performance-based formula ratemaking. The tariff would allow Ameren Illinois to reconcile its revenue requirement for up to two annual periods in which customer rates had been established, but not yet reconciled, under the performance-based formula ratemaking framework. To utilize the reconciliation, Ameren Illinois is required to file a request to update its electric distribution service rates through a traditional regulatory rate review, which may be based on a future test year and would reflect a proposed ROE subject to ICC approval. That request would need to be filed by the end of March in the year following the last year in which Ameren Illinois opted to set annual rates via the performance-based formula ratemaking framework. Ameren Illinois would be required to file that request no later than March 2023. Pursuant to the order, and without legislative change or Ameren Illinois’ election to opt out of performance-based formula ratemaking, Ameren Illinois’ 2022 and 2023 revenues would reflect each year’s actual recoverable costs, year-end rate base, and a return at the applicable WACC, with the ROE component based on the annual average of the monthly yields of the 30-year United States Treasury bonds plus 580 basis points. The revenue requirement reconciliation adjustment would be collected from, or refunded to, customers within two years from the end of the reconciled year.
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Electric Customer Energy-Efficiency Investments
In May 2021, Ameren Illinois filed its annual electric customer energy-efficiency formula rate update to increase its rates by $11 million with the ICC. An ICC decision in this proceeding is expected by December 2021, with new rates effective January 2022.
In July 2021, the ICC issued an order approving Ameren Illinois’ energy-efficiency plan that includes annual investments in electric energy-efficiency programs up to approximately $100 million per year from 2022 through 2025. The ICC has the ability to reduce the amount of electric energy-efficiency savings goals in future plan program years if there are insufficient cost-effective programs available, which could reduce the investments in electric energy-efficiency programs. The electric energy-efficiency program investments and the return on those investments are collected from customers through a rider and are not recovered through the electric distribution service performance-based formula ratemaking framework.
QIP Reconciliation Order
In March 2021, the ICC issued an order approving Ameren Illinois’ QIP reconciliation for 2018. The ICC also found that Ameren Illinois’ natural gas capital investments recovered under the QIP during 2018 were accurate and prudent. The ICC order effectively dismissed the Illinois Attorney General’s challenge with respect to 2018 capital investments.
Service Disconnection Moratorium
From March 2020 through March 2021, the ICC limited disconnection activities and late fees for customer nonpayment to varying degrees based on customer class. In March 2021, the ICC issued an order allowing Ameren Illinois to resume disconnection activities for all residential customers through a phased-in approach, which began in April 2021 for customers with the largest past due balances and in June 2021 for all remaining residential customers. The March 2021 order also required Ameren Illinois to offer deferred payment arrangements extending to 18 months to all residential customers through June 2021. In addition, the order requires Ameren Illinois to extend the financial assistance program established by a June 2020 ICC order through 2021. Ameren Illinois is allowed to recover up to $4 million in costs incurred during 2021 related to this financial assistance program. These costs will be deferred as regulatory assets and the portion associated with Ameren Illinois’ electric distribution business will be recovered through its bad debt rider and the portion associated with its natural gas distribution business will be recovered through a special purpose rider.
Federal
Transmission Formula Rate Revisions
In February 2020, the MISO, on behalf of Ameren Missouri, Ameren Illinois, and ATXI, filed requests with the FERC to revise each company’s transmission formula rate calculations with respect to the calculation used for materials and supplies inventories included in rate base. In May 2020, the FERC issued orders approving the revisions prospectively. In addition, the FERC declined to order refunds for earlier periods, as requested by intervenors in Ameren Illinois’ filing, but directed its audit staff to review historical rate recovery in connection with an ongoing FERC audit. In June 2020, Ameren Missouri, Ameren Illinois, and ATXI filed requests for rehearing arguing, among other things, the revisions should be applied retrospectively to include the period January 1, 2019, to June 1, 2020, and that the FERC should not require refunds for periods prior to 2019. In July 2020, the FERC denied the rehearing requests without addressing the issues raised. In July 2020, Ameren Missouri, Ameren Illinois, and ATXI filed an appeal of the July 2020 rehearing denials to the United States Court of Appeals for the District of Columbia Circuit, which is under no deadline to address the appeal. In October 2020, the FERC issued an order reaffirming its May 2020 order and denying the arguments raised in the rehearing requests filed by Ameren Missouri, Ameren Illinois, and ATXI. Regardless of the outcome of the appeal, the impacts of the May 2020 and October 2020 orders are not expected to be material to Ameren’s, Ameren Missouri’s, or Ameren Illinois’ results of operations, financial position, or liquidity.
In March 2021, the FERC issued an order related to an intervenor challenge to Ameren Illinois’ 2020 transmission formula rate update. As a result of this order, in March 2021, Ameren Illinois recorded a regulatory liability of $9 million, largely as a reduction of electric operating revenues, to reflect expected refunds, including interest, primarily related to the historical rate recovery of materials and supplies inventories included in rate base. In April 2021, Ameren Illinois filed a request for rehearing with the FERC regarding its March 2021 order. In May 2021, the FERC denied the rehearing request without addressing the issues raised, and indicated it will address them in a future order. The FERC is under no deadline to issue an order, nor is it required to address the issues raised in the rehearing request. In July 2021, Ameren Illinois filed an appeal of the March 2021 order and the May 2021 rehearing denial to the United States Court of Appeals for the District of Columbia Circuit, which is under no deadline to address the appeal.
FERC Complaint Cases
In November 2013, a customer group filed a complaint case with the FERC seeking a reduction in the allowed base ROE for FERC-regulated transmission rate base under the MISO tariff from 12.38% to 9.15%. In September 2016, the FERC issued an order in the
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November 2013 complaint case, which lowered the allowed base ROE to 10.32%, or a 10.82% total allowed ROE with the inclusion of a 50 basis point incentive adder for participation in an RTO, that was effective from late September 2016 forward. The September 2016 order also required refunds for the period November 2013 to February 2015, which were paid in 2017. In November 2019, the FERC issued an order addressing the November 2013 complaint case, which set the allowed base ROE at 9.88%, superseding the 10.32% previously ordered, and required refunds, with interest, for the periods November 2013 to February 2015 and from late September 2016 forward. In December 2019, the MISO transmission owners, including Ameren Missouri, Ameren Illinois, and ATXI, filed requests for rehearing with the FERC. In May 2020, the FERC issued an order addressing the requests for rehearing, which set the allowed base ROE at 10.02%, superseding the 9.88% previously ordered, and required refunds, with interest, for the periods November 2013 to February 2015 and from late September 2016 forward. In June 2020, various parties filed requests for rehearing with the FERC, challenging the new ROE methodology established by the May 2020 order. In July 2020, the FERC denied the rehearing requests without addressing the issues raised, and indicated it will address the requests for rehearing in a future order. Also in July 2020, Ameren Missouri, Ameren Illinois, and ATXI filed an appeal of the May 2020 order to the United States Court of Appeals for the District of Columbia Circuit challenging the refunds required for the period from September 2016 to May 2020. The court is under no deadline to address the appeal.
As of June 30, 2021, Ameren and Ameren Illinois had recorded current regulatory liabilities of $16 million and $8 million, respectively, to reflect the expected refunds, including interest, associated with the allowed base ROE set by the May 2020 order in the November 2013 complaint case. The increase in the FERC-allowed base ROE resulting from the May 2020 order was not material to Ameren Missouri’s results of operations, financial position, or liquidity.
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.
Short-term Borrowings
The Missouri Credit Agreement and the Illinois Credit Agreement are available to support issuances under Ameren (parent)’s, Ameren Missouri’s, and Ameren Illinois’ commercial paper programs, respectively, subject to borrowing sublimits, and the issuance of letters of credit. As of June 30, 2021, based on commercial paper outstanding and letters of credit issued under the Credit Agreements, along with cash and cash equivalents, the net liquidity available to Ameren (parent), Ameren Missouri, and Ameren Illinois, collectively, was $2.0 billion. The Ameren Companies were in compliance with the covenants in their Credit Agreements as of June 30, 2021. As of June 30, 2021, the ratios of consolidated indebtedness to consolidated total capitalization, calculated in accordance with the provisions of the Credit Agreements, were 57%, 49%, and 46% for Ameren, Ameren Missouri, and Ameren Illinois, respectively.
As of June 30, 2021, and December 31, 2020, Ameren (parent)’s commercial paper outstanding, net of issuance discounts, was $431 million and $490 million, respectively. There were no borrowings outstanding under the Credit Agreements as of June 30, 2021, or December 31, 2020.
The following table summarizes the activity and relevant interest rates for Ameren (parent)’s, Ameren Missouri’s, and Ameren Illinois’ commercial paper issuances and borrowings under the Credit Agreements in the aggregate for the six months ended June 30, 2021 and 2020:
Ameren
(parent)
Ameren
Missouri
Ameren
Illinois
Ameren
Consolidated
2021
Average daily amount outstanding$388 $183 $211 $782 
Weighted-average interest rate0.24 %0.22 %0.22 %0.23 %
Peak amount outstanding during period(a)
$650 $546 $485 $1,134 
Peak interest rate0.33 %0.25 %0.25 %0.33 %
2020
Average daily amount outstanding$93 $202 $40 $335 
Weighted-average interest rate2.05 %1.86 %1.98 %1.92 %
Peak amount outstanding during period(a)
$425 $573 $150 $908 
Peak interest rate3.30 %5.05 %(b)3.40 %5.05 %(b)
(a)The timing of peak outstanding commercial paper issuances and borrowings under the Credit Agreements varies by company. Therefore, the sum of individual company peak amounts may not equal the Ameren consolidated peak for the period.
(b)Ameren’s and Ameren Missouri’s peak interest rate was affected by temporary disruptions in the commercial paper market in the first quarter of 2020.
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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 utility money pool for the three and six months ended June 30, 2021, was 0.22% and 0.22%, respectively (2020 – 0.42% and 1.18%, respectively). See Note 8 – Related-party Transactions for the amount of interest income and expense from the utility money pool arrangements recorded by Ameren Missouri and Ameren Illinois for the three and six months ended June 30, 2021 and 2020.
NOTE 4 – LONG-TERM DEBT AND EQUITY FINANCINGS
Ameren
For the three and six months ended June 30, 2021, Ameren issued a total of 0.2 million and 0.3 million shares of common stock, respectively, under its DRPlus and 401(k) plan, and received proceeds of $12 million and $24 million, respectively. In addition, in the first quarter of 2021, Ameren issued 0.5 million shares of common stock valued at $33 million upon the vesting of stock-based compensation.
In February 2021, Ameren settled the remainder of the forward sale agreement by physically delivering 1.6 million shares of common stock for cash proceeds of $113 million. The proceeds were used to fund a portion of Ameren Missouri’s wind generation investments. See Note 2 – Rate and Regulatory Matters in this report and under Part II, Item 8, in the Form 10-K for additional information about the wind generation investments.
In May 2021, Ameren entered into an equity distribution sales agreement pursuant to which Ameren may offer and sell from time to time up to $750 million of its common stock through an ATM program, which includes the ability to enter into forward sales agreements. For the six months ended June 30, 2021, Ameren issued 1.4 million shares of common stock and received proceeds of $121 million, net of $1 million in compensation paid to selling agents.
In March 2021, Ameren (parent) issued $450 million of 1.75% senior unsecured notes due March 2028, with interest payable semiannually on March 15 and September 15 of each year, beginning September 15, 2021. Ameren received net proceeds of $447 million, which were used for general corporate purposes, including the repayment of short-term debt.
Ameren Missouri
In June 2021, Ameren Missouri issued $525 million of 2.15% first mortgage bonds due 2032, with interest payable semiannually on March 15 and September 15 of each year, beginning March 15, 2022. Ameren Missouri received net proceeds of $521 million, which are expected to be used to repay short-term debt and for near-term capital expenditures. Ameren Missouri intends to allocate an amount equal to the net proceeds to sustainability projects meeting certain eligibility criteria.
Ameren Missouri received capital contributions totaling $183 million from Ameren (parent) during the six months ended June 30, 2021.
Ameren Illinois
In March 2021, Ameren Illinois redeemed its 6.625% and 7.75% series preferred stock at par for $12 million and $1 million, respectively. The preferred stock of Ameren Illinois is reflected in “Noncontrolling Interests” on Ameren’s consolidated balance sheet.
In June 2021, Ameren Illinois issued $350 million of 2.90% first mortgage bonds due 2051, with interest payable semiannually on June 15 and December 15 of each year, beginning December 15, 2021. Ameren Illinois received net proceeds of $345 million, which are expected to be used to repay short-term debt. Ameren Illinois intends to allocate an amount equal to the net proceeds to sustainability projects meeting certain eligibility criteria.
In June 2021, Ameren Illinois issued $100 million of 0.375% first mortgage bonds due 2023, with interest payable semiannually on June 15 and December 15 of each year, beginning December 15, 2021. Ameren Illinois received net proceeds of $100 million, which are expected to be used to repay short-term debt.
Ameren Illinois received capital contributions totaling $70 million from Ameren (parent) during the six months ended June 30, 2021.
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 June 30, 2021, the Ameren Companies were in compliance with the provisions and covenants contained in their indentures and articles of incorporation, as applicable, and ATXI was in compliance with the provisions and covenants contained in its note purchase agreement.
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Off-balance-sheet Arrangements
At June 30, 2021, none of the Ameren Companies had any significant off-balance-sheet financing arrangements, other than variable interest entities. 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 and six months ended June 30, 2021 and 2020:
Three MonthsSix Months
2021202020212020
Ameren:
Allowance for equity funds used during construction$9 $$16 $13 
Interest income on industrial development revenue bonds6 12 12 
Other interest income0 1 
Non-service cost components of net periodic benefit income(a)
34 30 68 53 
Miscellaneous income7 11 
Donations(1)(1)(4)(14)(b)
Miscellaneous expense(6)(4)(9)(6)
Total Other Income, Net$49 $48 $95 $69 
Ameren Missouri:
Allowance for equity funds used during construction$6 $$10 $
Interest income on industrial development revenue bonds6 12 12 
Non-service cost components of net periodic benefit income(a)
14 14 28 19 
Miscellaneous income0 1 
Donations(1)(1)(1)(9)(b)
Miscellaneous expense(1)(2)(3)(3)
Total Other Income, Net$24 $25 $47 $29 
Ameren Illinois:
Allowance for equity funds used during construction$3 $$6 $
Interest income0 1 
Non-service cost components of net periodic benefit income14 11 28 24 
Miscellaneous income3 3 
Donations0 (1)(3)(5)
Miscellaneous expense(4)(1)(5)(3)
Total Other Income, Net$16 $17 $30 $28 
(a)For the three and six months ended June 30, 2021, the non-service cost components of net periodic benefit income were adjusted by amounts deferred of $(3) million in both periods, 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. The deferral was $(3) million and $3 million for the three and six months ended June 30, 2020.
(b)Includes $8 million pursuant to Ameren Missouri’s March 2020 electric rate order. See Note 2 Rate and Regulatory Matters under Part II, Item 8, in the Form 10-K for additional information.
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;
actual cash outlays for the purchase of these commodities that differ from anticipated cash outlays; and
actual off-system sales revenues that differ from anticipated revenues.
The derivatives that we use to hedge these risks are governed by our risk management policies for forward contracts, futures, options, and swaps. Our net positions are continually assessed within our structured hedging programs to determine whether new or offsetting transactions are required. The goal of the hedging program is generally to mitigate financial risks while ensuring that sufficient volumes are available to meet our requirements. Contracts we enter into as part of our risk management program may be settled financially, settled by physical delivery, or net settled with the counterparty.
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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. Many of our physical contracts, such as our purchased power contracts, qualify for the NPNS exception to derivative accounting rules. The revenue or expense on NPNS contracts is recognized at the contract price upon physical delivery. The following disclosures exclude NPNS contracts and other non-derivative commodity contracts that are accounted for under the accrual method of accounting.
If we determine that a contract meets the definition of a derivative and is not eligible for the NPNS exception, we review the contract to determine whether the resulting gains or losses qualify for regulatory deferral. Derivative contracts that qualify for regulatory deferral are recorded at fair value, with changes in fair value recorded as regulatory assets or liabilities in the period in which the change occurs. We believe derivative losses and gains deferred as regulatory assets and liabilities are probable of recovery, or refund, through future rates charged to customers. Regulatory assets and liabilities are amortized to operating income as related losses and gains are reflected in rates charged to customers. Therefore, gains and losses on these derivatives have no effect on operating income. As of June 30, 2021, and December 31, 2020, all contracts that met the definition of a derivative and were not eligible for the NPNS exception received regulatory deferral. Cash flows for all derivative financial instruments are classified in cash flows from operating activities.
The following table presents open gross commodity contract volumes by commodity type for derivative assets and liabilities as of June 30, 2021, and December 31, 2020. As of June 30, 2021, these contracts extended through October 2023, October 2026, and May 2032 for fuel oils, natural gas and power, respectively.
Quantity (in millions)
June 30, 2021December 31, 2020
CommodityAmeren MissouriAmeren IllinoisAmerenAmeren MissouriAmeren IllinoisAmeren
Fuel oils (in gallons)30 0 30 43 43 
Natural gas (in mmbtu)33 118 151 33 114 147 
Power (in MWhs)6 7 13 13 
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 June 30, 2021, and December 31, 2020:
June 30, 2021December 31, 2020
Balance Sheet LocationAmeren
Missouri
Ameren
Illinois
AmerenAmeren
Missouri
Ameren
Illinois
Ameren
Fuel oilsOther current assets$7 $0 $7 $$$
Other assets5 0 5 
Natural gasOther current assets7 26 33 
Other assets3 10 13 
PowerOther current assets15 0 15 
Other assets1 0 1 
Total assets$38 $36 $74 $12 $10 $22 
Fuel oilsOther current liabilities$1 $0 $1 $$$
Other deferred credits and liabilities0 0 0 
Natural gasOther current liabilities0 1 1 
Other deferred credits and liabilities0 0 0 
PowerOther current liabilities27 12 39 17 20 
Other deferred credits and liabilities17 154 171 181 189 
Total liabilities$45 $167 $212 $21 $200 $221 
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 June 30, 2021, and December 31, 2020.
Credit Risk
In determining our concentrations of credit risk related to derivative instruments, we review our individual counterparties and categorize each counterparty into groupings according to the primary business in which each engages. As of June 30, 2021, if counterparty groups were to fail completely to perform on contracts, Ameren, Ameren Missouri, and Ameren Illinois' maximum exposure related to derivative assets was $61 million, $25 million, and $36 million, respectively. The potential loss on counterparty exposures may be reduced or eliminated by the application of master netting arrangements or similar agreements and collateral held. As of June 30, 2021, the potential loss after
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consideration of the application of master netting arrangements or similar agreements and collateral held for Ameren, Ameren Missouri, and Ameren Illinois was $57 million, $21 million, and $36 million, respectively.
Certain of our derivative instruments contain collateral provisions tied to the Ameren Companies’ credit ratings. If our credit ratings were downgraded below investment grade, or if a counterparty with reasonable grounds for uncertainty regarding our ability to satisfy an obligation requested adequate assurance of performance, additional collateral postings might be required. The additional collateral required is the net liability position allowed under master netting arrangements or similar agreements, assuming (1) the credit risk-related contingent features underlying these arrangements were triggered and (2) those counterparties with rights to do so requested collateral. As of June 30, 2021, the aggregate fair value of derivative instruments with credit risk-related contingent features in a gross liability position, the cash collateral posted, and the aggregate amount of additional collateral that counterparties could require were each immaterial to Ameren, Ameren Missouri, and Ameren Illinois.
NOTE 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. Fair value measurements are classified in three levels based on the fair value hierarchy as defined by GAAP. See Note 8 – Fair Value Measurements under Part II, Item 8, of the Form 10-K for information related to hierarchy levels and valuation techniques.
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 and six months ended June 30, 2021 or 2020. At June 30, 2021, and December 31, 2020, 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 June 30, 2021, and December 31, 2020:
June 30, 2021December 31, 2020
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Ameren Missouri
Derivative assets – commodity contracts:
Fuel oils$11 $0 $1 $12 $$$$
Natural gas0 10 0 10 
Power5 0 11 16 
Total derivative assets – commodity contracts$16 $10 $12 $38 $$$$12 
Nuclear decommissioning trust fund:
Equity securities:
U.S. large capitalization$739 $0 $0 $739 $680 $$$680 
Debt securities:
U.S. Treasury and agency securities0 128 0 128 115 115 
Corporate bonds0 131 0 131 115 115 
Other0 65 0 65 67 67 
Total nuclear decommissioning trust fund$739 $324 $0 $1,063 (a)$680 $297 $$977 (a)
Total Ameren Missouri$755 $334 $12 $1,101 $682 $300 $$989 
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June 30, 2021December 31, 2020
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Ameren Illinois
Derivative assets – commodity contracts:
Natural gas$1 $27 $8 $36 $$$$10 
Ameren
Derivative assets – commodity contracts(b)
$17 $37 $20 $74 $$$11 $22 
Nuclear decommissioning trust fund(c)
739 324 0 1,063 (a)680 297 977 (a)
Total Ameren$756 $361 $20 $1,137 $682 $306 $11 $999 
Liabilities:
Ameren Missouri
Derivative liabilities – commodity contracts:
Fuel oils$0 $0 $1 $1 $$$$
Natural gas0 0 0 0 
Power28 0 16 44 11 
Total Ameren Missouri$28 $0 $17 $45 $14 $$$21 
Ameren Illinois
Derivative liabilities – commodity contracts:
Natural gas$0 $1 $0 $1 $$$$
Power0 0 166 166 198 198 
Total Ameren Illinois$0 $1 $166 $167 $$$199 $200 
Ameren
Derivative liabilities – commodity contracts(b)
$28 $1 $183 $212 $14 $$205 $221 
(a)Balance excludes $7 million and $5 million of cash and cash equivalents, receivables, payables, and accrued income, net, for June 30, 2021, and December 31, 2020, respectively.
(b)See the Ameren Missouri and Ameren Illinois sections of the table for a breakout of the fair value of Ameren’s derivative assets and liabilities by type of commodity.
(c)See the Ameren Missouri section of the table for a breakout of the fair value of Ameren's nuclear decommissioning trust fund by investment type.
Level 3 fuel oils, natural gas and uranium derivative contract assets and liabilities measured at fair value on a recurring basis were immaterial for all periods presented. The following table presents the fair value reconciliation of Level 3 power derivative contract assets and liabilities measured at fair value on a recurring basis for the three and six months ended June 30, 2021 and 2020:
20212020
Ameren MissouriAmeren IllinoisAmerenAmeren MissouriAmeren IllinoisAmeren
For the three months ended June 30:
Beginning balance at April 1$(3)$(185)$(188)$17 $(241)$(224)
Realized and unrealized gains/(losses) included in regulatory assets/liabilities(1)15 14 16 
Settlements(1)4 3 (10)(5)
Ending balance at June 30$(5)$(166)$(171)$16 $(229)$(213)
Change in unrealized gains/(losses) related to assets/liabilities held at June 30$(2)$15 $13 $$$15 
For the six months ended June 30:
Beginning balance at January 1$2 $(198)$(196)$13 $(224)$(211)
Realized and unrealized gains/(losses) included in regulatory assets/liabilities(6)24 18 20 (14)
Settlements(1)8 7 (17)(8)
Ending balance at June 30$(5)$(166)$(171)$16 $(229)$(213)
Change in unrealized gains/(losses) related to assets/liabilities held at June 30$(3)$24 $21 $12 $(13)$(1)
All gains or losses related to our Level 3 derivative commodity contracts are expected to be recovered or returned through customer rates; therefore, there is no impact to either net income or other comprehensive income resulting from changes in the fair value of these instruments.
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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 June 30, 2021, and December 31, 2020:
Fair Value
Weighted Average(b)
CommodityAssetsLiabilitiesValuation Technique(s)
Unobservable Input(a)
Range
2021
Power(c)
$11$(182)Discounted cash flow
Average forward peak and off-peak pricing  forwards/swaps ($/MWh)
26 – 4933
Nodal basis ($/MWh)(4) – 0(1)
Trend rate (%)1 – 32
2020
Power(c)
$5$(201)Discounted cash flowAverage forward peak and off-peak pricing – forwards/swaps ($/MWh)23 – 3729
Nodal basis ($/MWh)(6) – 0(2)
Trend rate (%)2 – 63
(a)Generally, significant increases (decreases) in these inputs in isolation would result in a significantly higher (lower) fair value measurement.
(b)Unobservable inputs were weighted by relative fair value.
(c)Valuations through 2029 use visible forward prices adjusted for nodal-to-hub basis differentials. Valuations beyond 2029 use a trend rate factor and are similarly adjusted for nodal-to-hub basis differentials.
The following table sets forth the carrying amount and, by level within the fair value hierarchy, the fair value of financial assets and liabilities disclosed, but not recorded, at fair value as of June 30, 2021, and December 31, 2020:
Carrying
Amount
Fair Value
Level 1Level 2Level 3Total
June 30, 2021
Ameren:
Cash, cash equivalents, and restricted cash$267 $267 $0 $0 $267 
Investments in industrial development revenue bonds(a)
256 0 256 0 256 
Short-term debt431 0 431 0 431 
Long-term debt (including current portion)(a)
12,500 (b)0 13,647 528 (c)14,175 
Ameren Missouri:
Cash, cash equivalents, and restricted cash$17 $17 $0 $0 $17 
Advances to money pool92 0 92 0 92 
Investments in industrial development revenue bonds(a)
256 0 256 0 256 
Long-term debt (including current portion)(a)
5,626 (b)0 6,427 0 6,427 
Ameren Illinois:
Cash, cash equivalents, and restricted cash$242 $242 $0 $0 $242 
Advances to money pool20 0 20 0 20 
Long-term debt (including current portion)4,391 (b)0 5,038 0 5,038 
December 31, 2020
Ameren:
Cash, cash equivalents, and restricted cash$301 $301 $$$301 
Investments in industrial development revenue bonds(a)
256 256 256 
Short-term debt490 490 490 
Long-term debt (including current portion)(a)
11,086 (b)12,778 537 (c)13,315 
Ameren Missouri:
Cash, cash equivalents, and restricted cash$145 $145 $$$145 
Advances to money pool139 139 139 
Investments in industrial development revenue bonds(a)
256 256 256 
Long-term debt (including current portion)(a)
5,104 (b)6,160 6,160 
Ameren Illinois:
Cash, cash equivalents, and restricted cash$147 $147 $$$147 
Borrowings from money pool19 19 19 
Long-term debt (including current portion)3,946 (b)4,822 4,822 
(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 June 30, 2021, and December 31, 2020, 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 $93 million, $40 million, and $40 million for Ameren, Ameren Missouri, and Ameren Illinois, respectively, as of June 30, 2021. Included unamortized debt issuance costs, which were excluded from the fair value measurement, of $84 million, $36 million, and $36 million for Ameren, Ameren Missouri, and Ameren Illinois, respectively, as of December 31, 2020.
(c)The Level 3 fair value amount consists of ATXI’s senior unsecured notes.
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NOTE 8 – RELATED-PARTY TRANSACTIONS
In the ordinary 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. For information on Ameren Missouri’s and Ameren Illinois’ capital contributions, see Note 4 – Long-term Debt and Equity Financings.
Electric Power Supply Agreement
In April 2021, 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 2021, Ameren Missouri and Ameren Illinois entered into an energy product agreement by which Ameren Missouri agreed to sell and Ameren Illinois agreed to purchase, 33,600 MWhs at an average price of $34 per MWh during the period of July 2022 through November 2022.
Tax Allocation Agreement
See Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of the Form 10-K for a discussion of the tax allocation agreement. The following table presents the affiliate balances related to income taxes for Ameren Missouri and Ameren Illinois as of June 30, 2021, and December 31, 2020:
June 30, 2021December 31, 2020
Ameren MissouriAmeren IllinoisAmeren MissouriAmeren Illinois
Income taxes payable to parent(a)
$47 $26 $$
Income taxes receivable from parent(b)
0 0 15 
(a)Included in “Accounts payable – affiliates” on the balance sheet.
(b)Included in “Accounts receivable – affiliates” on the balance sheet.
Effects of Related-party Transactions on the Statement of Income
The following table presents the effect on Ameren Missouri and Ameren Illinois of related-party transactions for the three and six months ended June 30, 2021 and 2020:
Three MonthsSix Months
AgreementIncome Statement
Line Item
Ameren
Missouri
Ameren
Illinois
Ameren
Missouri
Ameren
Illinois
Ameren Missouri power supplyOperating Revenues2021$3 $(a)$5 $(a)
agreements with Ameren Illinois2020(a)(a)
Ameren Missouri and Ameren IllinoisOperating Revenues2021$7 $(b)$14 $(b)
rent and facility services2020(b)13 
Ameren Missouri and Ameren Illinois miscellaneousOperating Revenues2021$(b)$2 $(b)$2 
support services and services provided to ATXI2020(b)(b)
Total Operating Revenues2021$10 $2 $19 $2 
202010 (b)20 
Ameren Illinois power supplyPurchased Power2021$(a)$3 $(a)$5 
agreements with Ameren Missouri2020(a)(a)
Ameren Missouri and Ameren IllinoisPurchased Power2021$1 $1 $2 $1 
transmission services from ATXI2020(a)(a)
Total Purchased Power2021$1 $4 $2 $6 
2020(a)(a)
Ameren Missouri and Ameren IllinoisOther Operations and Maintenance2021$(b)$1 $(b)$2 
rent and facility services2020(b)(b)
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Three MonthsSix Months
AgreementIncome Statement
Line Item
Ameren
Missouri
Ameren
Illinois
Ameren
Missouri
Ameren
Illinois
Ameren Services support servicesOther Operations and Maintenance2021$34 $31 $69 $64 
agreement202032 31 67 64 
Total Other Operations and2021$34 $32 $69 $66 
Maintenance202032 32 67 66 
Money pool borrowings (advances)(Interest Charges)/Other Income, Net2021$(b)$(b)$(b)$(b)
2020(b)(b)(b)(b)
(a)Not applicable.
(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 9 – Callaway Energy Center, 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.
Environmental Matters
Our electric and gas generation, transmission, distribution and gas storage operations must comply with a variety of environmental statutory and regulatory requirements, including permitting programs implemented via federal, state, and local authorities. Such laws address air emissions; discharges to water bodies; the storage, handling, and disposal of hazardous substances and waste materials; siting and land use requirements; and potential ecological impacts. Complex and lengthy processes are required to obtain and renew approvals, permits, and licenses for new, existing, or modified facilities. Additionally, the use and handling of various chemicals or hazardous materials require release prevention plans and emergency response procedures. We employ dedicated personnel knowledgeable in environmental matters to oversee our business activities’ compliance with regulatory requirements.
Environmental regulations have a significant impact on the electric utility industry and compliance with these regulations could be costly for Ameren Missouri, which operates coal-fired power plants. Clean Air Act regulations that apply to the electric utility industry include the NSPS, the CSAPR, the MATS, and the National Ambient Air Quality Standards, which are subject to periodic review for certain pollutants. Collectively, these regulations cover a variety of pollutants, such as SO2, particulate matter, NOx, mercury, toxic metals and acid gases, and CO2 emissions from new power plants. Regulations implementing the Clean Water Act govern both intake and discharges of water, and may require evaluation of the ecological and biological impact of our operations and could require modifications to water intake structures or more stringent limitations on wastewater discharges. Depending upon the scope of modifications ultimately required by state regulators, these capital expenditures could be significant. The management and disposal of coal ash is regulated under the Resource Conservation and Recovery Act and the CCR rule, which require the closure of our surface impoundments at Ameren Missouri’s coal-fired energy centers. Additionally, Ameren Missouri’s wind generation facilities may be subject to operating restrictions to limit the impact on protected species. The individual or combined effects of existing and new environmental regulations could result in significant capital expenditures, increased operating costs, or the closure or alteration of operations at some of Ameren Missouri’s energy centers. Ameren and Ameren Missouri expect that such compliance costs would be recoverable through rates, subject to MoPSC prudence review, but the timing of costs and their recovery could be subject to regulatory lag.
Ameren and Ameren Missouri estimate that they will need to make capital expenditures of $175 million to $225 million from 2021 through 2025 in order to comply with existing environmental regulations. Additional environmental controls beyond 2025 could be required. This estimate of capital expenditures includes ash pond closure and corrective action measures required by the CCR regulations and the effluent limitation guidelines applicable to steam electric generating units, and potential modifications to cooling water intake structures at existing power plants under Clean Water Act rules, all of which are discussed below. This estimate does not include capital expenditures that may be required as a result of the NSR and Clean Air Act litigation discussed below. Ameren Missouri’s current plan for compliance with existing air emission regulations includes burning low-sulfur coal and installing new or optimizing existing air pollution control equipment. The actual amount of capital expenditures required to comply with existing environmental regulations may vary substantially from the above estimates because of uncertainty as to future permitting requirements made by state regulators and the EPA, potential revisions to regulatory obligations, and the cost of potential compliance strategies, among other things.
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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 SO2 and NOx through the reduction of emissions at their source and the use and retirement of emission allowances. CSAPR is implemented through a series of phases, and the second phase became effective in 2017. Additional emission reduction requirements may apply in subsequent years. Ameren Missouri complies with current CSAPR requirements by minimizing emissions through the use of low-sulfur coal, operation of 2 scrubbers at its Sioux Energy Center, and optimization of other existing air pollution control equipment. Ameren Missouri could incur additional costs to lower its emissions at one or more of its energy centers to comply with additional CSAPR requirements in future years. These additional costs for compliance are expected to be recovered from customers through the FAC or higher base rates.
CO2 Emissions Standards
The EPA’s Affordable Clean Energy Rule repealed the Clean Power Plan and replaced it with a new rule that established emission guidelines for states to follow in developing plans to limit CO2 emissions and identified certain efficiency measures as the best system of emission reduction for coal-fired electric generating units. In January 2021, the United States Court of Appeals for the District of Columbia Circuit vacated the Affordable Clean Energy Rule, and ruled that the EPA had the discretion to consider emission reduction measures that include efficiency measures and generation shifting to lower carbon emissions. Various petitions for review are pending before the United States Supreme Court, and a decision on whether the Supreme Court will review the circuit court's ruling could occur in second half of 2021. Regardless of the outcome of those legal challenges, the EPA is likely to develop new regulations to address carbon emissions from coal and natural gas electric generating units. At this time, Ameren Missouri cannot predict the outcome of legal challenges to the vacated Affordable Clean Energy Rule or future rulemakings. As such, the impact on the results of operations, financial position, and liquidity of Ameren and Ameren Missouri is uncertain.
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 alleging that in performing projects at its coal-fired Rush Island Energy Center in 2007 and 2010, Ameren Missouri violated provisions of the Clean Air Act and Missouri law. In January 2017, the district court issued a liability ruling and, in September 2019, entered a final order that required Ameren Missouri to install a flue gas desulfurization system at the Rush Island Energy Center and a dry sorbent injection system at the Labadie Energy Center. There were no fines in the order as the Department of Justice previously dismissed claims for penalties. Full implementation of the district court’s order has been stayed, and Ameren Missouri does not expect to make significant capital expenditures or incur operations and maintenance expenses related to the district court’s order while the case is under appeal. In December 2020, the court of appeals heard oral arguments presented by the parties. The court is under no deadline to issue a ruling in this case and Ameren Missouri is unable to predict the ultimate resolution of this matter. Ameren Missouri expects a ruling by the court of appeals during 2021.
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 air pollution control equipment, as well as increased operations and maintenance expenses. Based upon engineering studies from October 2019, capital expenditures to comply with the district court’s order for installation of a flue gas desulfurization system at the Rush Island Energy Center are estimated at approximately $1 billion. Further, the flue gas desulfurization system would result in additional operation and maintenance expenses of $30 million to $50 million annually for the life of the energy center. Engineering studies required to develop estimated capital expenditures and estimated additional operation and maintenance expenses for the Labadie Energy Center to comply with the district court’s order will not be undertaken while the case is under appeal.
Clean Water Act
The EPA’s regulations implementing Section 316(b) of the Clean Water Act require power plant operators to evaluate cooling water intake structures and identify measures for reducing the number of aquatic organisms impinged on a power plant’s cooling water intake screens or entrained through the plant’s cooling water system. All of Ameren Missouri’s coal-fired and nuclear energy centers are subject to the cooling water intake structures rule. Requirements of the rule are implemented by state regulators through the permit renewal process of each power plant’s water discharge permit, which is expected to be completed by 2023 for Ameren Missouri.
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In 2015, the EPA issued a rule to revise the effluent limitation guidelines applicable to steam electric generating units. These guidelines established national standards for water discharges, prohibit effluent discharges of certain waste streams, and impose more stringent limitations on certain water discharges from power plants. To meet the requirements of the guidelines, Ameren Missouri installed dry ash handling systems and in 2020 completed construction of wastewater treatment facilities at 3 of its 4 coal-fired energy centers. The Meramec Energy Center is scheduled to close permanently in 2022 and, as a result, does not require new wastewater and dry ash handling systems. Estimated capital expenditures to complete these projects are included in the CCR management compliance plan, discussed below.
CCR Management
The EPA’s CCR rule establishes requirements for the management and disposal of CCR from coal-fired power plants and will result in the closure of surface impoundments at Ameren Missouri’s energy centers. Ameren Missouri expects to complete closure of surface impoundments at 3 of its facilities in 2021, and is scheduled to complete the last of such closures at a fourth facility in 2023. The EPA has issued a series of revisions to the CCR rule; however, none of those revisions is expected to materially impact our closure schedule. Ameren and Ameren Missouri have AROs of $97 million recorded on their respective balance sheets as of June 30, 2021, associated with CCR storage facilities. Ameren Missouri estimates it will need to make capital expenditures of $75 million to $100 million from 2021 through 2025 to implement its CCR management compliance plan, which includes installation of groundwater monitoring equipment and groundwater treatment facilities.
Remediation
The Ameren Companies are involved in a number of remediation actions to clean up sites impacted by the use or disposal of materials containing hazardous substances. Federal and state laws can require responsible parties to fund remediation regardless of their degree of fault, the legality of original disposal, or the ownership of a disposal site.
As of June 30, 2021, Ameren Illinois has remediated the majority of the 44 former MGP sites in Illinois and could substantially conclude remediation efforts at the remaining sites by 2023. The ICC allows Ameren Illinois to recover such remediation and related litigation costs from its electric and natural gas utility customers through environmental cost riders that are subject to annual prudence reviews by the ICC. As of June 30, 2021, Ameren Illinois estimated the remaining obligation related to these former MGP sites at $85 million to $150 million. Ameren and Ameren Illinois recorded a liability of $85 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 historical practices will result in future environmental commitments or will affect our results of operations, financial position, or liquidity.
NOTE 10 – CALLAWAY ENERGY CENTER
See Note 9 – Callaway Energy Center under Part II, Item 8, of the Form 10-K for information regarding spent nuclear fuel recovery, recovery of decommissioning costs, and the nuclear decommissioning trust fund. 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. 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. Every three years, the MoPSC requires Ameren Missouri to file an updated cost study and funding analysis for decommissioning its Callaway Energy Center. An updated cost study and funding analysis was filed with the MoPSC in November 2020 and reflected within the ARO. In February 2021, the MoPSC approved no change in electric rates for decommissioning costs based on Ameren Missouri’s updated cost study funding analysis. See Note 13 – Supplemental Information for more information on Ameren Missouri’s AROs.
Maintenance Outage
During its return to full power after the completion of the last refueling and maintenance outage in late December 2020, the Callaway Energy Center experienced a non-nuclear operating issue related to its generator. After replacement of certain key components of the generator, the energy center returned to service on August 4, 2021. The cost of generator repairs was approximately $60 million, which was
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largely capital expenditures. In April 2021, Ameren Missouri’s insurance claims were accepted by NEIL, which are expected to cover a significant portion of the capital expenditures and covered lost sales of up to $4.5 million weekly after March 17, 2021. Insurance recoveries related to lost sales were reflected in electric operating revenues and included in net energy costs under the FAC. Expected insurance recoveries related to the capital expenditures were reflected as a reduction to property, plant, and equipment. As of June 30, 2021, a $36 million insurance receivable was included in “Miscellaneous accounts receivable” on Ameren’s and Ameren Missouri’s balance sheets. Ameren Missouri continues its review of the cause of the outage and the potential for legal remedies against responsible third parties.
Insurance
The following table presents insurance coverage at Ameren Missouri’s Callaway Energy Center at June 30, 2021:
Type and Source of CoverageMost Recent
Renewal Date
Maximum CoveragesMaximum Assessments
for Single Incidents
Public liability and nuclear worker liability:
American Nuclear InsurersJanuary 1, 2021$450 $
Pool participation(a)13,073 
(a) 
138 
(b) 
$13,523 
(c) 
$138 
Property damage:
NEIL and EMANIApril 1, 2021$3,200 (d)$25 
(e) 
Accidental outage:
NEILApril 1, 2021$490 
(f) 
$
(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 power 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)Accidental outage insurance provides for lost sales in the event of a prolonged accidental outage. Weekly indemnity up to $4.5 million for 52 weeks, which commences after the first 12 weeks of an outage, plus up to $3.6 million per week for a minimum of 71 weeks thereafter for a total not exceeding the policy limit of $490 million. Nonradiation events are limited to $328 million.
The Price-Anderson Act is a federal law that limits the liability for claims from an incident involving any licensed United States commercial nuclear energy center. The limit is based on the number of licensed reactors. The limit of liability and the maximum potential annual payments are adjusted at least every five years for inflation to reflect changes in the Consumer Price Index. The most recent five-year inflationary adjustment became effective in November 2018. Owners of a nuclear reactor cover this exposure through a combination of private insurance and mandatory participation in a financial protection pool, as established by the Price-Anderson Act.
Losses resulting from terrorist attacks on nuclear facilities insured by NEIL are subject to industrywide aggregates, such that terrorist acts against one or more commercial nuclear power plants within a stated time period would be treated as a single event, and the owners of the nuclear power plants would share the limit of liability. NEIL policies have an aggregate limit of $3.2 billion within a 12-month period for radiation events, or $1.8 billion for events not involving radiation contamination, resulting from terrorist attacks. The EMANI policies are not subject to industrywide aggregates in the event of terrorist attacks on nuclear facilities.
If losses from a nuclear incident at the Callaway Energy Center exceed the limits of, or are not covered by insurance, or if coverage is unavailable, Ameren Missouri is at risk for any uninsured losses. If a serious nuclear incident were to occur, it could have a material adverse effect on Ameren’s and Ameren Missouri’s results of operations, financial position, or liquidity.
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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 and six months ended June 30, 2021 and 2020:
Pension BenefitsPostretirement Benefits
Three MonthsSix MonthsThree MonthsSix Months
20212020202120202021202020212020
Service cost(a)
$34 $28 $67 $55 $6 $$12 $10 
Non-service cost components:
Interest cost38 44 76 87 8 16 19 
Expected return on plan assets(74)(72)(149)(145)(20)(20)(40)(40)
Amortization of:
Prior service benefit0 (1)0 (1)(1)(1)(2)(2)
Actuarial loss (gain)20 16 37 30 (2)(2)(3)(4)
Total non-service cost components(b)
$(16)$(13)$(36)$(29)$(15)$(14)$(29)$(27)
Net periodic benefit cost (income)$18 $15 $31 $26 $(9)$(8)$(17)$(17)
(a)Service cost, net of capitalization, is reflected in “Operating Expenses – Other operations and maintenance” on Ameren’s statement of income.
(b)Non-service cost components are reflected in “Other Income, Net” on Ameren’s statement of income. See Note 5 – Other Income, Net, for additional information.
Ameren Missouri and Ameren Illinois are responsible for their respective share of Ameren’s pension and other postretirement costs. The following table presents the respective share of net periodic pension and other postretirement benefit costs (income) incurred for the three and six months ended June 30, 2021 and 2020:
Pension BenefitsPostretirement Benefits
Three MonthsSix MonthsThree MonthsSix Months
20212020202120202021202020212020
Ameren Missouri(a)
$9 $$15 $11 $(1)$(1)$(2)$(2)
Ameren Illinois9 17 16 (8)(8)(15)(16)
Other0 (1)(1)(1)0 0 
Ameren(a)
$18 $15 $31 $26 $(9)$(8)$(17)$(17)
(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 and six months ended June 30, 2021 and 2020:
AmerenAmeren MissouriAmeren Illinois
202120202021202020212020
Three Months
Federal statutory corporate income tax rate21 %21 %21 %21 %21 %21 %
Increases (decreases) from:
Amortization of deferred investment tax credit0 (1)(1)0 
Amortization of excess deferred taxes(9)(9)

(17)(16)

(2)(3)
Depreciation differences0 1 1 
Renewable and other tax credits(4)(a)(10)(a)(1)
State tax5 3 7 
Effective income tax rate13 %17 %(3)%%26 %26 %
Six Months
Federal statutory corporate income tax rate21 %21 %21 %21 %21 %21 %
Increases (decreases) from:
Amortization of deferred investment tax credit0 (1)(1)0 
Amortization of excess deferred taxes(9)(9)

(17)(16)

(3)(3)
Depreciation differences0 1 0 
Renewable and other tax credits(5)(a)(10)(a)0 
State tax5 3 7 
Stock-based compensation0 (2)0 0 
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AmerenAmeren MissouriAmeren Illinois
202120202021202020212020
Effective income tax rate12 %15 %(3)%%25 %25 %
(a)Includes production tax credits associated with the High Prairie and Atchison renewable energy centers. Ameren Missouri placed the High Prairie renewable energy center in service as of December 2020. Additionally, Ameren Missouri placed in service the wind turbines at its Atchison renewable energy center throughout the first half of 2021. The benefit of the production tax credits associated with Missouri renewable energy standard compliance is refunded to customers through the RESRAM.
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 at June 30, 2021, and December 31, 2020:
June 30, 2021December 31, 2020
AmerenAmeren
Missouri
Ameren
Illinois
AmerenAmeren
Missouri
Ameren
Illinois
“Cash and cash equivalents”$99 $0 $96 $139 $136 $
“Restricted cash”131  122 17 — 
Restricted cash included in “Other current assets” 4  — — 
Restricted cash included in “Other assets”24 0 24 141 141 
Restricted cash included in “Nuclear decommissioning trust fund”13 13 0 
Total cash, cash equivalents, and restricted cash$267 $17 $242 $301 $145 $147 
Restricted cash included in “Other current assets” primarily represents funds held by an irrevocable Voluntary Employee Beneficiary Association (VEBA) trust, which provides health care benefits for active employees. At December 31, 2020, 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. At June 30, 2021, the amounts collected under the cost recovery rider restricted for use in Ameren Illinois’ procurement of renewable energy credits were classified as current as the amount is expected to be refunded to customers within a year.
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 June 30, 2021, and December 31, 2020, “Other current liabilities” on Ameren’s and Ameren Illinois’ balance sheets included payables for purchased receivables of $30 million and $28 million, respectively.
The following table provides a reconciliation of the beginning and ending amount of the allowance for doubtful accounts for the three and six months ended June 30, 2021 and 2020:
Three MonthsSix Months
2021202020212020
Ameren:
Beginning of period$47 $19 $50 $17 
Bad debt expense(3)1 10 
Net write-offs(2)(1)(9)(2)
End of period$42 $25 $42 $25 
Ameren Missouri:
Beginning of period$15 $$16 $
Bad debt expense2 3 
Net write-offs(1)(1)(3)(2)
End of period$16 $$16 $
Ameren Illinois:(a)
Beginning of period$32 $11 $34 $10 
Bad debt expense(5)(b)(2)(b)
Net write-offs(1)(6)
End of period$26 $16 $26 $16 
(a)Ameren Illinois has rate-adjustment mechanisms that allow it to recover the difference between its actual net bad debt write-offs under GAAP, including those associated with receivables purchased from alternative retail electric suppliers, and the amount of net bad debt write-offs included in its base rates.
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(b)In the three and six months ended June 30, 2021, Ameren Illinois’ bad debt expense was reduced as a result of state funding received for customer bill assistance.
Net write-offs increased for the three and six months ended June 30, 2021, compared with the year-ago period, due to the resumption of disconnection activities for nonpayment. See Note 2 – Rate and Regulatory Matters in this report and under Part II, Item 8, in the Form 10-K for additional information.
Supplemental Cash Flow Information
The following table provides noncash financing and investing activity excluded from the statements of cash flows for the six months ended June 30, 2021 and 2020:
June 30, 2021June 30, 2020
AmerenAmeren
Missouri
Ameren
Illinois
AmerenAmeren
Missouri
Ameren
Illinois
Investing
Accrued capital expenditures, including wind generation expenditures$434 $259 $174 $287 $111 $165 
Net realized and unrealized gain (loss)  nuclear decommissioning trust fund
85 85 0 (4)(4)
Financing
Issuance of common stock for stock-based compensation$33 $0 $0 $38 $$
Asset Retirement Obligations
The following table provides a reconciliation of the beginning and ending carrying amount of AROs for the six months ended June 30, 2021:
Ameren
Missouri
Ameren
Illinois
Ameren
Balance at December 31, 2020$751 

$(a)$756 (b)
Liabilities incurred18 (c)18 (c)
Liabilities settled(11)(11)
Accretion15 (d)

15 (d)
Change in estimates(7)(e)(7)(e)
Balance at June 30, 2021$766 

$(a)$771 (b)
(a)Included in “Other deferred credits and liabilities” on the balance sheet.
(b)Balance included $59 million and $60 million in “Other current liabilities” on the balance sheet as of June 30, 2021, and December 31, 2020, respectively.
(c)During the first six months of 2021, Ameren Missouri recorded an ARO related to the decommissioning of the Atchison Renewable Energy Center.
(d)Accretion expense attributable to Ameren Missouri was recorded as a decrease to regulatory liabilities.
(e)Ameren Missouri changed its fair value estimate primarily due to a decrease in the cost estimate for closure of certain CCR storage facilities.
Stock-based Compensation
On January 1, 2021, Ameren granted 293,058 performance share units with a grant date fair value of $25 million and 125,562 restricted share units with a grant date fair value of $10 million. Awards vest approximately 38 months after the grant date or on a pro-rata basis upon death or eligible retirement. The performance share units vest based on the achievement of certain specified market performance measures (251,177 performance share units) or based on the achievement of renewable generation and energy storage installation targets (41,881 performance share units). The exact number of shares issued pursuant to a performance share unit varies from 0% to 200% of the target award, depending on actual company performance relative to the performance goals.
For the six months ended June 30, 2021 and 2020, excess tax benefits associated with the settlement of stock-based compensation awards reduced income tax expense by $5 million and $8 million, respectively.
Deferred Compensation
As of June 30, 2021, and December 31, 2020, the present value of benefits to be paid for deferred compensation obligations was $91 million and $90 million, respectively, which was primarily reflected in “Other deferred credits and liabilities” on Ameren's consolidated balance sheet.
Operating Revenues
As of June 30, 2021 and 2020, 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.
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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 and six months ended June 30, 2021 and 2020:
Three MonthsSix Months
2021202020212020
Ameren Missouri$35 $36 $66 $66 
Ameren Illinois27 26 66 61 
Ameren$62 $62 $132 $127 
Earnings per Share
The following table reconciles the basic weighted-average number of common shares outstanding to the diluted weighted-average number of common shares outstanding for the three and six months ended June 30, 2021 and 2020:
Three MonthsSix Months
2021202020212020
Weighted-average Common Shares Outstanding – Basic256.1 246.9 255.2 246.7 
Assumed settlement of performance share units and restricted stock units1.1 1.0 1.3 1.0 
Dilutive effect of forward sale agreement0 0 0.3 
Weighted-average Common Shares Outstanding – Diluted(a)
257.2 247.9 256.5 248.0 
(a)There were 0 potentially dilutive securities excluded from the earnings per diluted share calculations for the three and six months ended June 30, 2021 and 2020.
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NOTE 14 – SEGMENT INFORMATION
The following tables present revenues, net income (loss) attributable to common shareholders, and capital expenditures by segment at Ameren and Ameren Illinois for the three and six months ended June 30, 2021 and 2020. Ameren, Ameren Missouri, and Ameren Illinois management review segment capital expenditure information rather than any individual or total asset amount. For additional information about our segments, see Note 16 – Segment Information under Part II, Item 8, of the Form 10-K.
Ameren
Ameren MissouriAmeren Illinois Electric DistributionAmeren Illinois Natural GasAmeren TransmissionOtherIntersegment EliminationsAmeren
Three Months 2021:
External revenues$799 $386 $168 $119 $ $ $1,472 
Intersegment revenues10 2 0 17  (29) 
Net income (loss) attributable to Ameren common shareholders111 41 8 55 (a)(8) 207 
Capital expenditures567 (b)129 61 131 0 (12)876 (b)
Three Months 2020:
External revenues$782 $352 $140 $124 $— $— $1,398 
Intersegment revenues10 12 — (22)— 
Net income (loss) attributable to Ameren common shareholders152 36 59 (a)(13)— 243 
Capital expenditures238 139 79 135 (1)592 
Six Months 2021:
External revenues$1,494 $797 $515 $232 $ $ $3,038 
Intersegment revenues19 2 0 34  (55) 
Net income attributable to Ameren common shareholders158 87 83 102 (a)10  440 
Capital expenditures1,101 (b)286 109 272 1 (6)1,763 (b)
Six Months 2020:
External revenues$1,452 $741 $411 $234 $— $— $2,838 
Intersegment revenues20 25 — (46)— 
Net income attributable to Ameren common shareholders142 73 64 106 (a)— 389 
Capital expenditures516 262 140 305 1,228 
(a)Ameren Transmission earnings reflect an allocation of financing costs from Ameren (parent).
(b)Includes $224 million and $417 million at Ameren and Ameren Missouri for wind generation expenditures for the three and six months ended June 30, 2021, respectively.
Ameren Illinois
Ameren Illinois Electric DistributionAmeren Illinois Natural GasAmeren Illinois TransmissionIntersegment EliminationsAmeren Illinois
Three Months 2021:
External revenues$388 $168 $73 $ $629 
Intersegment revenues0 0 15 (15) 
Net income available to common shareholder41 8 37  86 
Capital expenditures129 61 119  309 
Three Months 2020:
External revenues$352 $140 $75 $— $567 
Intersegment revenues12 (12)— 
Net income available to common shareholder36 38 — 83 
Capital expenditures139 79 119 — 337 
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Ameren Illinois Electric DistributionAmeren Illinois Natural GasAmeren Illinois TransmissionIntersegment EliminationsAmeren Illinois
Six Months 2021:
External revenues$799 $515 $138 $ $1,452 
Intersegment revenues0 0 31 (31) 
Net income available to common shareholder87 83 65  235 
Capital expenditures286 109 251  646 
Six Months 2020:
External revenues$742 $411 $137 $— $1,290 
Intersegment revenues24 (24)— 
Net income available to common shareholder73 64 66 — 203 
Capital expenditures262 140 259 — 661 
The following tables present disaggregated revenues by segment at Ameren and Ameren Illinois for the three and six months ended June 30, 2021 and 2020. 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
Ameren MissouriAmeren Illinois Electric DistributionAmeren Illinois Natural GasAmeren TransmissionIntersegment EliminationsAmeren
Three Months 2021:
Residential$328 $218 $0 $0 $0 $546 
Commercial271 127 0 0 0 398 
Industrial71 34 0 0 0 105 
Other119 9 

0 136 (29)235 
Total electric revenues$789 $388 $0 $136 $(29)$1,284 
Residential$11 $0 $112 $0 $0 $123 
Commercial4 0 29 0 0 33 
Industrial1 0 3 0 0 4 
Other4 0 24 

0 0 28 
Total natural gas revenues$20 $0 $168 $0 $0 $188 
Total revenues(a)
$809 $388 $168 $136 $(29)$1,472 
Three Months 2020:
Residential$359 $210 $$$$569 
Commercial264 112 376 
Industrial67 30 97 
Other81 

136 (22)195 

Total electric revenues$771 $352 $$136 $(22)$1,237 
Residential$11 $$94 $$$105 
Commercial22 26 
Industrial
Other21 26 
Total natural gas revenues$21 $$140 $$$161 
Total revenues(a)
$792 $352 $140 $136 $(22)$1,398 
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Ameren MissouriAmeren Illinois Electric DistributionAmeren Illinois Natural GasAmeren TransmissionIntersegment EliminationsAmeren
Six Months 2021:
Residential$640 $447 $0 $0 $0 $1,087 
Commercial487 259 0 0 0 746 
Industrial123 68 0 0 0 191 
Other180 25 0 266 (55)416 
Total electric revenues$1,430 $799 $0 $266 $(55)$2,440 
Residential$45 $0 $363 $0 $0 $408 
Commercial19 0 93 0 0 112 
Industrial2 0 17 0 0 19 
Other17 0 42 0 0 59 
Total natural gas revenues$83 $0 $515 $0 $0 $598 
Total revenues(a)
$1,513 $799 $515 $266 $(55)$3,038 
Six Months 2020:
Residential$656 $430 $$$$1,086 
Commercial485 238 723 
Industrial120 65 185 
Other141 259 (46)363 
Total electric revenues$1,402 $742 $$259 $(46)$2,357 
Residential$44 $$307 $$$351 
Commercial17 76 93 
Industrial
Other22 29 
Total natural gas revenues$70 $$411 $$$481 
Total revenues(a)
$1,472 $742 $411 $259 $(46)$2,838 
(a)The following table presents increases/(decreases) in revenues from alternative revenue programs and other revenues not from contracts with customers for the three and six months ended June 30, 2021 and 2020:
Ameren MissouriAmeren Illinois Electric DistributionAmeren Illinois Natural GasAmeren TransmissionAmeren
Three Months 2021:
Revenues from alternative revenue programs$(5)$34 $2 $5 $36 
Other revenues not from contracts with customers66 (a)0 1 0 67 (a)
Three Months 2020:
Revenues from alternative revenue programs$(6)$$$18 $20 
Other revenues not from contracts with customers
Six Months 2021:
Revenues from alternative revenue programs$(15)$95 $5 $4 $89 
Other revenues not from contracts with customers64 (a)3 2 0 69 (a)
Six Months 2020:
Revenues from alternative revenue programs$(9)$51 $14 $30 $86 
Other revenues not from contracts with customers15 17 
(a)Includes insurance recoveries related to lost sales associated with the Callaway Energy Center maintenance outage. See Note 10 Callaway Energy Center for additional information.
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Ameren Illinois
Ameren Illinois Electric DistributionAmeren Illinois Natural GasAmeren Illinois TransmissionIntersegment EliminationsAmeren Illinois
Three Months 2021:
Residential$218 $112 $0 $0 $330 
Commercial127 29 0 0 156 
Industrial34 3 0 0 37 
Other9 

24 

88 (15)106 
Total revenues(a)
$388 $168 $88 $(15)$629 
Three Months 2020:
Residential$210 $94 $$$304 
Commercial112 22 134 
Industrial30 33 
Other21 87 (12)96 
Total revenues(a)
$352 $140 $87 $(12)$567 
Six Months 2021:
Residential$447 $363 $0 $0 $810 
Commercial259 93 0 0 352 
Industrial68 17 0 0 85 
Other25 42 169 (31)205 
Total revenues(a)
$799 $515 $169 $(31)$1,452 
Six Months 2020:
Residential$430 $307 $$$737 
Commercial238 76 314 
Industrial65 71 
Other22 161 (24)168 
Total revenues(a)
$742 $411 $161 $(24)$1,290 
(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 and six months ended June 30, 2021 and 2020:
Ameren Illinois Electric DistributionAmeren Illinois Natural GasAmeren Illinois TransmissionAmeren Illinois
Three Months 2021:
Revenues from alternative revenue programs$34 $2 $2 $38 
Other revenues not from contracts with customers0 1 0 1 
Three Months 2020:
Revenues from alternative revenue programs$$$14 $22 
Other revenues not from contracts with customers
Six Months 2021:
Revenues from alternative revenue programs$95 $5 $1 $101 
Other revenues not from contracts with customers3 2 0 5 
Six Months 2020:
Revenues from alternative revenue programs$51 $14 $24 $89 
Other revenues not from contracts with customers
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
The following discussion should be read in conjunction with the financial statements contained in this Form 10-Q, as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors contained in the Form 10-K. We intend for this discussion to provide the reader with information that will assist in understanding our financial statements, the changes in certain key items in those financial statements, and the primary factors that accounted for those changes, as well as how certain accounting principles affect our financial statements. The discussion also provides information about the financial results of our business segments to provide a better understanding of how those segments and their results affect the financial condition and results of operations of Ameren as a whole. Also see the Glossary of Terms and Abbreviations at the front of this report and in the Form 10-K.
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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.
Union Electric Company, doing business as Ameren Missouri, operates a rate-regulated electric generation, transmission, and distribution business and a rate-regulated natural gas distribution business in Missouri.
Ameren Illinois Company, doing business as Ameren Illinois, operates rate-regulated electric transmission, electric distribution, and natural gas distribution businesses in Illinois.
ATXI operates a FERC rate-regulated electric transmission business in the MISO.
Ameren’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.
In addition to presenting results of operations and earnings amounts in total, we present certain information in cents per share. These amounts reflect factors that directly affect Ameren’s earnings. We believe this per share information helps readers to understand the impact of these factors on Ameren’s earnings per share.
OVERVIEW
Net income attributable to Ameren common shareholders in the three months ended June 30, 2021, was $207 million, or $0.80 per diluted share, compared with $243 million, or $0.98 per diluted share, in the year-ago period. Net income attributable to common shareholders in the six months ended June 30, 2021, was $440 million, or $1.71 per diluted share, compared with $389 million, or $1.57 per diluted share, in the year-ago period. Net income for the three and six months ended June 30, 2021, compared to the year-ago periods, was favorably affected by increased infrastructure investments at Ameren Missouri, Ameren Transmission, and Ameren Illinois Electric Distribution; increased Ameren Missouri electric retail sales, primarily resulting from colder winter temperatures experienced in 2021; higher delivery service rates at Ameren Illinois Natural Gas; and a higher recognized ROE at Ameren Illinois Electric Distribution. Net income for the six months ended June 30, 2021, compared to the year-ago period, was also favorably affected by the results of Ameren Missouri’s March 2020 electric rate order, and lower other operations and maintenance expenses not subject to riders or regulatory tracking mechanisms, primarily due to disciplined cost management and changes in the value of company-owned life insurance. Earnings for the three and six months ended June 30, 2021, compared to the year-ago periods, were unfavorably affected by a change in rate design at Ameren Missouri, which resulted in less revenues in the second quarter of 2021 due to a change in the timing of transition from winter to summer volumetric rates; the effect of dilution; and the absence in 2021 of the FERC’s May 2020 order addressing the allowed base ROE for FERC regulated transmission rate base under the MISO tariff, which increased earnings in the year-ago periods. The earnings comparisons were also unfavorably affected by higher other operations and maintenance expenses at Ameren Missouri due to the amortization of expenses, beginning in January 2021, related to the 2020 scheduled refueling and maintenance outage at the Callaway Energy Center pursuant to the MoPSC’s February 2020 order. Net income for the six months ended June 30, 2021, compared to the year-ago period, was unfavorably affected by the result of the FERC’s March 2021 order, primarily related to the historical recovery of materials and supplies inventories.
Ameren’s strategic plan includes investing and operating its utilities in a manner consistent with existing regulatory frameworks, enhancing those frameworks, and advocating for responsible energy and economic policies, as well as creating and capitalizing on opportunities for investment for the benefit of its customers, shareholders, and the environment. Ameren remains focused on disciplined cost management and strategic capital allocation. Ameren invested $1.8 billion in its rate-regulated businesses in the six months ended June 30, 2021.
The COVID-19 pandemic continues to affect our results of operations, financial position, and liquidity, but we continue to expect gradual improvement in sales volumes in 2021, compared to 2020. In the first six months of 2021, our sales volumes, excluding the estimated effects of weather and customer energy-efficiency programs, increased compared to the same period in 2020. However, our accounts receivable balances that were past due or that were a part of a deferred payment arrangement are higher than normal historical levels, as customer payments have been affected. The continued effect of the COVID-19 pandemic on our results of operations, financial position, and liquidity in subsequent periods will depend on its severity and longevity, future regulatory or legislative actions with respect thereto, and the resulting impact on business, economic, and capital market conditions. In general, restrictions on social activities and nonessential businesses implemented in our service territories in 2020 have been relaxed. However, additional restrictions may be imposed in the future. We continue to assess the impacts the COVID-19 pandemic is having on our businesses, including impacts on electric and natural gas sales volumes, liquidity, bad debt expense, and supply chain operations. For further discussion of these and other matters discussed below, see Note 2 – Rate and Regulatory Matters under Part I, Item 1, of this report, and Results of Operations, Liquidity and Capital Resources, and Outlook sections below. In addition, for information regarding Ameren Illinois’ suspension and subsequent reinstatement of customer disconnection
40


activities and late fee charges for nonpayment, see Note 2 – Rate and Regulatory Matters under Part I, Item 1, of this report and under Part II, Item 8, of the Form 10-K.
Due to extremely cold winter weather in mid-February 2021, Ameren Missouri and Ameren Illinois experienced higher than anticipated commodity costs for purchased power and natural gas purchased for resale, which contributed to the acceleration of the timing of planned 2021 debt issuances. Ameren Missouri and Ameren Illinois have cost recovery mechanisms in place that provide recovery of the higher purchased power and natural gas costs from customers over periods of time established under the applicable mechanisms.
In January 2021, Ameren Missouri acquired a 300-MW wind generation project located in northwestern Missouri. As of June 30, 2021, Ameren Missouri had placed the project in service as the Atchison Renewable Energy Center. The purchase price of the energy center was approximately $500 million, including an immaterial amount of transaction costs. The Atchison Renewable Energy Center will support Ameren Missouri’s compliance with the Missouri renewable energy standard.
In February 2021, Ameren Missouri filed an update to its Smart Energy Plan with the MoPSC, which includes a five-year capital investment overview with a detailed one-year plan for 2021. The plan is designed to upgrade Ameren Missouri’s electric infrastructure and includes investments that will upgrade the grid and accommodate more renewable energy. Investments under the plan are expected to total approximately $8.4 billion over the five-year period from 2021 through 2025, with expenditures largely recoverable under the PISA and the RESRAM. The planned investments in 2024 and 2025 are based on the assumption that Ameren Missouri requests and receives MoPSC approval of an extension of the PISA through December 2028.
In March 2021, Ameren Missouri filed requests with the MoPSC seeking approval to increase its annual revenues for electric service by $299 million and for natural gas delivery service by $9 million. The electric rate increase request is based on a 9.9% ROE, a capital structure composed of 51.9% common equity, a rate base of $10.0 billion and a test year ended December 31, 2020, with certain pro-forma adjustments expected through a true-up date of September 30, 2021. The MoPSC proceedings relating to the proposed rate changes will take place over a period of up to 11 months, with a decision by the MoPSC expected by February 2022 and new rates effective by late February 2022.
In March 2021, the MoPSC issued orders approving nonunanimous stipulation and agreements related to Ameren Missouri’s electric and natural gas service accounting authority order requests. The orders allowed Ameren Missouri to accumulate $9 million of certain costs incurred related to the COVID-19 pandemic, net of cost savings, as well as forgone customer late fee and reconnection fee revenues from March 2020 to March 2021, for potential recovery in the electric and natural gas service regulatory rate reviews discussed above. In March 2021, Ameren Missouri deferred $5 million as a regulatory asset related to the accounting authority orders. If approved for recovery, Ameren Missouri would recognize the remaining $4 million associated with forgone customer late fee and reconnection fee revenue when billed to customers.
During its return to full power after the completion of the last refueling and maintenance outage in late December 2020, the Callaway Energy Center experienced a non-nuclear operating issue related to its generator. After replacement of certain key components of the generator, the energy center returned to service on August 4, 2021. The cost of generator repairs was approximately $60 million, which was largely capital expenditures. See Note 10  Callaway Energy Center under Part I, Item 1, of this report for additional information.
In March 2021, the ICC issued an order approving Ameren Illinois’ requested tariff to reconcile its electric distribution service revenue requirement once Ameren Illinois ceases to update customer rates under performance-based formula ratemaking. The tariff would allow Ameren Illinois to reconcile its revenue requirement for up to two annual periods in which customer rates had been established, but not yet reconciled, under the performance-based formula ratemaking framework. To utilize the reconciliation, Ameren Illinois is required to file a request to update its electric distribution service rates through a traditional regulatory rate review, which may be based on a future test year and would reflect a proposed ROE subject to ICC approval. That request would need to be filed by the end of March in the year following the last year in which Ameren Illinois opted to set annual rates via the performance-based formula ratemaking framework. Ameren Illinois would be required to file that request no later than March 2023. Pursuant to the order, and without legislative change or Ameren Illinois’ election to opt out of performance-based formula ratemaking, Ameren Illinois’ 2022 and 2023 revenues would reflect each year’s actual recoverable costs, year-end rate base, and a return at the applicable WACC, with the ROE component based on the annual average of the monthly yields of the 30-year United States Treasury bonds plus 580 basis points. The revenue requirement reconciliation adjustment would be collected from, or refunded to, customers within two years from the end of the reconciled year.
In April 2021, Ameren Illinois filed its annual electric distribution service performance-based formula rate update to be used for 2022 rates with the ICC. In June 2021, the ICC staff submitted its calculation of the revenue requirement included in Ameren Illinois’ update filing, recommending a $54 million increase. In July 2021, Ameren Illinois filed a revised request seeking to increase its annual revenues for electric distribution service by $60 million. An ICC decision in this proceeding is expected by December 2021, with new rates effective January 2022.
In May 2021, Ameren Illinois filed its annual electric customer energy-efficiency formula rate update to increase its rates by $11 million with the ICC. An ICC decision in this proceeding is expected by December 2021, with new rates effective January 2022.
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In July 2021, the ICC issued an order approving Ameren Illinois’ energy-efficiency plan that includes annual investments in electric energy-efficiency programs up to approximately $100 million per year from 2022 through 2025. The ICC has the ability to reduce the amount of electric energy-efficiency savings goals in future plan program years if there are insufficient cost-effective programs available, which could reduce the investments in electric energy-efficiency programs. The electric energy-efficiency program investments and the return on those investments are collected from customers through a rider and are not recovered through the electric distribution service performance-based formula ratemaking framework.
RESULTS OF OPERATIONS
Our results of operations and financial position are affected by many factors. Economic conditions, including those resulting from the COVID-19 pandemic discussed below, energy-efficiency investments by our customers and by us, technological advances, distributed generation, and the actions of key customers can significantly affect the demand for our services. Ameren and Ameren Missouri results are also affected by seasonal fluctuations in winter heating and summer cooling demands, as well as by energy center maintenance outages. Additionally, fluctuations in interest rates and conditions in the capital and credit markets affect our cost of borrowing, and our pension and postretirement benefits costs. Almost all of Ameren’s revenues are subject to state or federal regulation. This regulation has a material impact on the rates we charge customers for our services. Our results of operations, financial position, and liquidity are affected by our ability to align our overall spending, both operating and capital, with the frameworks established by our regulators. See Note 2 – Rate and Regulatory Matters under Part I, Item 1, of this report and Note 2 – Rate and Regulatory Matters under Part II, Item 8, of the Form 10-K for additional information regarding Ameren Missouri’s, Ameren Illinois’, and ATXI’s regulatory mechanisms.
We continue to assess the impacts of the COVID-19 pandemic on our businesses, including impacts on electric and natural gas sales volumes, supply chain operations, and bad debt expense. Regarding uncollectible accounts receivable, Ameren Illinois’ electric distribution and natural gas distribution businesses have bad debt riders, which provide for recovery of bad debt write-offs, net of any subsequent recoveries. Ameren Missouri does not have a bad debt rider or tracker, and thus its earnings are exposed to increases in bad debt expense, absent regulatory relief. However, Ameren Missouri does not expect a material impact to earnings from increases in bad debt expense. As of June 30, 2021, accounts receivable balances that were 30 days or greater past due or that were a part of a deferred payment arrangement represented 26%, 17%, and 35%, or $116 million, $32 million, and $84 million, of Ameren’s, Ameren Missouri’s, and Ameren Illinois’ customer trade receivables before allowance for doubtful accounts, respectively. In comparison, as of June 30, 2019, these percentages were 17%, 11%, and 25%, or $83 million, $24 million, and $59 million, for Ameren, Ameren Missouri, and Ameren Illinois, respectively. Ameren Missouri's electric sales volumes have been, and continue to be, affected by the COVID-19 pandemic. In the three and six months ended June 30, 2021, compared to the same periods in 2020, Ameren Missouri experienced an increase in commercial and industrial electric sales volumes, partially offset by decreased electric sales volumes to higher margin residential customers, excluding the estimated effects of weather and customer energy-efficiency programs. The following table provides the increases and (decreases) in Ameren Missouri electric sales volumes by customer class for the three and six months ended June 30, 2021, compared to the same periods in 2020, excluding the estimated effects of weather and customer energy-efficiency programs:
Ameren Missouri Customer ClassThree months ended June 30, 2021, versus same period in 2020Six months ended June 30, 2021, versus same period in 2020
Residential(4.2)%(0.4)%
Commercial8.5 %2.5 %
Industrial7.0 %2.9 %
Total2.9 %1.2 %
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.
We employ various risk management strategies to reduce our exposure to commodity risk and other risks inherent in our business. The reliability of Ameren Missouri’s energy centers and our transmission and distribution systems, and the level and timing of operations and maintenance costs and capital investment, are key factors that we seek to manage in order to optimize our results of operations, financial position, and liquidity.
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Earnings Summary
The following table presents a summary of Ameren’s earnings for the three and six months ended June 30, 2021 and 2020:
Three MonthsSix Months
2021202020212020
Net income attributable to Ameren common shareholders$207 $243 $440 $389 
Earnings per common share diluted
0.80 0.98 1.71 1.57 
Net income attributable to Ameren common shareholders decreased $36 million, or 18 cents per diluted share, in the three months ended June 30, 2021, compared with the year-ago period. The decrease was due to net income decreases of $41 million, $4 million, and $1 million at Ameren Missouri, Ameren Transmission, and Ameren Illinois Natural Gas, respectively. These decreases were partially offset by a $5 million increase in net income at Ameren Illinois Electric Distribution and a $5 million decrease in the net loss for activity not reported as part of a segment, primarily at Ameren (parent).
Net income attributable to Ameren common shareholders increased $51 million, or 14 cents per diluted share, in the six months ended June 30, 2021, compared with the year-ago period. The increase was due to net income increases of $19 million, $16 million, $14 million, and $6 million at Ameren Illinois Natural Gas, Ameren Missouri, Ameren Illinois Electric Distribution, and activity not reported as part of a segment, primarily at Ameren (parent), respectively. These increases were partially offset by a $4 million decrease in net income at Ameren Transmission.
Earnings per diluted share were favorably affected in the three and six months ended June 30, 2021, compared to the year-ago periods (except where a specific period is referenced), by:
the results of the MoPSC’s March 2020 electric rate order, as discussed in Note 2 – Rate and Regulatory Matters under Part II, Item 8, of the Form 10-K, which reduced the base level of expenses at Ameren Missouri, partially offset by lower base rates, net of recovery for amounts associated with the reduction in sales volumes resulting from MEEIA programs and recoverable depreciation under the PISA (10 cents per share for the six months ended June 30, 2021);
increased rate base investments at Ameren Transmission and Ameren Illinois Electric Distribution and a higher recognized ROE at Ameren Illinois Electric Distribution, which increased revenues at the respective segments (4 cents and 9 cents per share, respectively);
investments in infrastructure and wind generation pursuant to the PISA and the RESRAM, which resulted in increased deferral of interest expense (5 cents and 7 cents per share, respectively);
decreased other operations and maintenance expense not subject to riders and trackers, primarily due to disciplined cost management and changes in the cash surrender value of company-owned life insurance (5 cents per share for the six months ended June 30, 2021);
the impact of weather on electric retail sales at Ameren Missouri, primarily resulting from colder winter temperatures experienced in 2021 (estimated at 1 cent and 5 cents per share, respectively);
higher base rates pursuant to the ICC's January 2021 natural gas rate order, which increased margins at Ameren Illinois Natural Gas (1 cent and 4 cents per share, respectively);
a change in rate design pursuant to the ICC's January 2021 natural gas rate order that concentrates more revenues in the winter heating season due to an increase in volumetric rates, which increased margins at Ameren Illinois Natural Gas, but is not expected to materially impact full year results (3 cents per share for the six months ended June 30, 2021);
increased income tax benefit, primarily at Ameren (parent), due to increased interim period income tax benefits in 2021, largely related to wind generation facilities, which is not expected to materially impact full year results (3 cents per share for the six months ended June 30, 2021);
increased electric retail sales, excluding the estimated effects of weather, at Ameren Missouri, largely due to improving economic conditions, which resulted in increased sales volumes to commercial and industrial customers, partially offset by decreased sales volumes to residential customers (3 cents and 2 cents per share, respectively); and
the absence of charitable donations made in 2020 pursuant to the MoPSC’s March 2020 electric rate order (2 cents per share for the six months ended June 30, 2021).
Earnings per diluted share were unfavorably affected in the three and six months ended June 30, 2021, compared to the year-ago periods (except where a specific period is referenced), by:
a change in rate design pursuant to the MoPSC’s March 2020 electric rate order that resulted in less revenues in the second quarter of 2021 due to a change in the timing of transition from winter to summer volumetric rates, which decreased margins at Ameren Missouri for the three and six months ended June 30, 2021, but is not expected to materially impact full year results (19 cents per share for both periods);
the result of the FERC’s March 2021 order, primarily related to the historical recovery of materials and supplies inventories, which decreased Ameren Transmission earnings in 2021; and the absence in 2021 of the FERC’s May 2020 order addressing the allowed
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base ROE for FERC regulated transmission rate base under the MISO tariff, which increased earnings in the year-ago periods (4 cents and 7 cents per share, respectively);
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 (3 cents and 6 cents per share, respectively);
increased other operations and maintenance expenses at Ameren Missouri due to the amortization of expenses, beginning in January 2021, related to the 2020 scheduled refueling and maintenance outage at the Callaway Energy Center pursuant to the MoPSC’s February 2020 order, and increased energy center maintenance costs for the three months ended June 30, 2021, due to the deferral of projects in the year-ago period (4 cents per share for both periods);
increased financing costs primarily at Ameren Missouri and Ameren (parent), largely due to higher long-term debt balances (2 cents and 4 cents per share, respectively); and
increased depreciation and amortization expenses not recoverable under riders or trackers at Ameren Missouri and Ameren Illinois Natural Gas, primarily due to additional property, plant, and equipment investments (1 cent and 2 cents per share, respectively).
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, 2020, and do not reflect the impact of dilution on earnings per share, unless otherwise noted. Amounts other than variances related to income taxes have been presented net of income taxes using Ameren’s 2021 blended federal and state statutory tax rate of 26%. For additional details regarding the Ameren Companies’ results of operations, including explanations of Electric and Natural Gas Margins, Other Operations and Maintenance Expenses, Depreciation and Amortization Expenses, Taxes Other Than Income Taxes, Other Income, Net, Interest Charges, and Income Taxes, see the major headings below.
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Below is Ameren’s table of income statement components by segment for the three and six months ended June 30, 2021 and 2020:
Ameren
Missouri
Ameren
Illinois
Electric
Distribution
Ameren
Illinois
Natural Gas
Ameren TransmissionOther /
Intersegment
Eliminations
Ameren
Three Months 2021:
Electric margins$566 $289 $ $136 $(9)$982 
Natural gas margins15  108   123 
Other operations and maintenance expenses(218)(129)(53)(14)2 (412)
Depreciation and amortization expenses(157)(77)(22)(27)(2)(285)
Taxes other than income taxes(85)(18)(15)(2)(2)(122)
Other income, net24 11 3 2 9 49 
Interest charges(36)(19)(10)(20)(11)(96)
Income (taxes) benefit3 (16)(3)(20)5 (31)
Net income (loss)112 41 8 55 (8)208 
Noncontrolling interests preferred stock dividends
(1)    (1)
Net income (loss) attributable to Ameren common shareholders$111 $41 $8 $55 $(8)$207 
Three Months 2020:
Electric margins$615 $264 $— $136 $(6)$1,009 
Natural gas margins15 — 104 — — 119 
Other operations and maintenance expenses(202)(118)(52)(15)(384)
Depreciation and amortization expenses(155)(71)(20)(23)(2)(271)
Taxes other than income taxes(83)(19)(13)(2)(2)(119)
Other income, net25 48 
Interest charges(50)(18)(10)(18)(12)(108)
Income taxes(12)(11)(4)(22)(1)(50)
Net income (loss)153 36 10 59 (14)244 
Noncontrolling interests preferred stock dividends
(1)— (1)— (1)
Net income (loss) attributable to Ameren common shareholders$152 $36 $$59 $(13)$243 
Six Months 2021:
Electric margins$1,054 $578 $ $266 $(16)$1,882 
Natural gas margins47  321   368 
Other operations and maintenance expenses(443)(254)(109)(30)4 (832)
Depreciation and amortization expenses(313)(152)(44)(55)(2)(566)
Taxes other than income taxes(162)(38)(40)(4)(6)(250)
Other income, net47 19 6 5 18 95 
Interest charges(75)(37)(20)(43)(21)(196)
Income (taxes) benefit5 (28)(31)(37)33 (58)
Net income160 88 83 102 10 443 
Noncontrolling interests preferred stock dividends
(2)(1)   (3)
Net income attributable to Ameren common shareholders$158 $87 $83 $102 $10 $440 
Six Months 2020:
Electric margins$1,067 $544 $— $259 $(15)$1,855 
Natural gas margins46 — 286 — — 332 
Other operations and maintenance expenses(441)(248)(109)(29)(822)
Depreciation and amortization expenses(294)(142)(41)(47)(2)(526)
Taxes other than income taxes(162)(38)(35)(4)(5)(244)
Other income, net29 16 12 69 
Interest charges(90)(36)(20)(39)(16)(201)
Income (taxes) benefit(11)(22)(23)(39)24 (71)
Net income144 74 65 106 392 
Noncontrolling interests preferred stock dividends
(2)(1)(1)— (3)
Net income attributable to Ameren common shareholders$142 $73 $64 $106 $$389 
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Below is Ameren Illinois’ table of income statement components by segment for the three and six months ended June 30, 2021 and 2020:
Ameren
Illinois
Electric
Distribution
Ameren
Illinois
 Natural Gas
Ameren
Illinois Transmission
Ameren Illinois
Three Months 2021:
Electric and natural gas margins$289 $108 $88 $485 
Other operations and maintenance expenses(129)(53)(11)(193)
Depreciation and amortization expenses(77)(22)(18)(117)
Taxes other than income taxes(18)(15)(1)(34)
Other income, net11 3 2 16 
Interest charges(19)(10)(11)(40)
Income taxes(16)(3)(12)(31)
Net income attributable to common shareholder$41 $8 $37 $86 
Three Months 2020:
Electric and natural gas margins$264 $104 $87 $455 
Other operations and maintenance expenses(118)(52)(12)(182)
Depreciation and amortization expenses(71)(20)(16)(107)
Taxes other than income taxes(19)(13)— (32)
Other income, net17 
Interest charges(18)(10)(10)(38)
Income taxes(11)(4)(14)(29)
Net income36 10 38 84 
Preferred stock dividends— (1)— (1)
Net income attributable to common shareholder$36 $$38 $83 
Six Months 2021:
Electric and natural gas margins$578 $321 $169 $1,068 
Other operations and maintenance expenses(254)(109)(24)(387)
Depreciation and amortization expenses(152)(44)(36)(232)
Taxes other than income taxes(38)(40)(2)(80)
Other income, net19 6 5 30 
Interest charges(37)(20)(25)(82)
Income taxes(28)(31)(22)(81)
Net income88 83 65 236 
Preferred stock dividends(1)  (1)
Net income attributable to common shareholder$87 $83 $65 $235 
Six Months 2020:
Electric and natural gas margins$544 $286 $161 $991 
Other operations and maintenance expenses(248)(109)(24)(381)
Depreciation and amortization expenses(142)(41)(31)(214)
Taxes other than income taxes(38)(35)(1)(74)
Other income, net16 28 
Interest charges(36)(20)(21)(77)
Income taxes(22)(23)(23)(68)
Net income74 65 66 205 
Preferred stock dividends(1)(1)— (2)
Net income attributable to common shareholder$73 $64 $66 $203 
Electric and Natural Gas Margins
Electric margins are defined as electric revenues less fuel and purchased power costs. Natural gas margins are defined as natural gas revenues less natural gas purchased for resale. We consider electric and natural gas margins useful measures to analyze the change in profitability of our electric and natural gas operations between periods. We have included the analysis below to complement the financial information we provide in accordance with GAAP. However, these margins may not be a presentation defined under GAAP, and they may not be comparable to other companies’ presentations or more useful than the GAAP information we provide elsewhere in this report.
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Electric Margins
Increase (Decrease) by Segment
Overall Ameren Decrease of $27 Million (QTD YoY)Overall Ameren Increase of $27 Million (YTD YoY)
Total by Segment(a)
aee-20210630_g4.jpgaee-20210630_g5.jpgaee-20210630_g6.jpg
(a)Includes other/intersegment eliminations of $(9) million and $(6) million in the three months ended June 30, 2021 and 2020. Also includes other/intersegment eliminations of $(16) million and $(15) million in the six months ended June 30, 2021 and 2020, respectively.
Ameren MissouriAmeren Illinois Electric DistributionAmeren TransmissionOther/Intersegment Eliminations
Natural Gas Margins
Increase (Decrease) by Segment
Overall Ameren Increase of $4 Million (QTD YoY)Overall Ameren Increase of $36 Million (YTD YoY)
Total by Segment
aee-20210630_g7.jpgaee-20210630_g8.jpgaee-20210630_g9.jpg
Ameren MissouriAmeren Illinois Natural Gas
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The following tables present the favorable (unfavorable) variations by Ameren segment for electric and natural gas margins for the six months ended June 30, 2021, compared with the year-ago periods:
Electric and Natural Gas Margins
Three MonthsAmeren MissouriAmeren Illinois
Electric Distribution
Ameren Illinois
Natural Gas
Ameren Transmission(a)
Other /Intersegment EliminationsAmeren
Electric revenue change:
Effect of weather (estimate)(b)
$$— $— $— $— $
Base rates (estimate)(c)
— 19 — — — 19 
Sales volumes and changes in customer usage patterns (excluding the estimated effects of weather and MEEIA)11 — — — — 11 
Change in rate design(63)— — — — (63)
Customer demand charges— — — — 
Off-system sales, capacity, and FAC revenues, net54 — — — — 54 
Energy-efficiency program investment revenues— — — — 
Other— — (7)
Cost recovery mechanisms – offset in fuel and purchased power(d)
11 11 — — — 22 
Other cost recovery mechanisms(e)
(7)— — — (6)
Total electric revenue change$18 $36 $— $— $(7)$47 
Fuel and purchased power change:
Energy costs (excluding the estimated effect of weather)$(53)$— $— $— $— $(53)
Effect of weather (estimate)(b)
(1)— — — — (1)
Other(2)— — — 
Cost recovery mechanisms – offset in electric revenue(d)
(11)(11)— — — (22)
Total fuel and purchased power change$(67)$(11)$— $— $$(74)
Net change in electric margins$(49)$25 $ $ $(3)$(27)
Natural gas revenue change:
Effect of weather (estimate)(b)
$(1)$— $— $— $— $(1)
Base rates (estimate)— — — — 
Change in rate design— — (4)— — (4)
Other— — — — 
Cost recovery mechanisms – offset in natural gas purchased for resale(d)
— — 24 — — 24 
Other cost recovery mechanisms(e)
— — — — 
Total natural gas revenue change$(1)$— $