filings.toolsAmeren 10-K 2016-12-31
Filed 2017-02-28. 22 sections, 775K characters. Original on sec.gov · Markdown · JSON
Cover and table of contents
10-K 1 aee201610-k.htm 10-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
| (X) | Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2016. | |
| OR | ||
| ( ) | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to . |
 |  |  |
| Commission File Number | Exact name of registrant as specified in its charter; State of Incorporation; Address and Telephone Number | IRS Employer Identification No. | ||
| 1-14756 | Ameren Corporation | 43-1723446 | ||
| (Missouri Corporation) | ||||
| 1901 Chouteau Avenue | ||||
| St. Louis, Missouri 63103 | ||||
| (314) 621-3222 | ||||
| 1-2967 | Union Electric Company | 43-0559760 | ||
| (Missouri Corporation) | ||||
| 1901 Chouteau Avenue | ||||
| St. Louis, Missouri 63103 | ||||
| (314) 621-3222 | ||||
| 1-3672 | Ameren Illinois Company | 37-0211380 | ||
| (Illinois Corporation) | ||||
| 6 Executive Drive | ||||
| Collinsville, Illinois 62234 | ||||
| (618) 343-8150 |
Securities Registered Pursuant to Section 12(b) of the Act:
The following security is registered pursuant to Section 12(b) of the Securities Exchange Act of 1934 and is listed on the New York Stock Exchange:
| Registrant | Title of each class | ||
| Ameren Corporation | Common Stock, $0.01 par value per share |
Securities Registered Pursuant to Section 12(g) of the Act:
| Registrant | Title of each class | ||
| Union Electric Company | Preferred Stock, cumulative, no par value, stated value $100 per share | ||
| Ameren Illinois Company | Preferred Stock, cumulative, $100 par value per share Depositary Shares, each representing one-fourth of a share of 6.625% Preferred Stock, cumulative, $100 par value per share |
Indicate by checkmark if each registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
| Ameren Corporation | Yes | (X) | No | ( ) |
| Union Electric Company | Yes | ( ) | No | (X) |
| Ameren Illinois Company | Yes | (X) | No | ( ) |
Indicate by checkmark if each registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
| Ameren Corporation | Yes | ( ) | No | (X) |
| Union Electric Company | Yes | ( ) | No | (X) |
| Ameren Illinois Company | Yes | ( ) | No | (X) |
Indicate by checkmark whether the registrants: (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.
| Ameren Corporation | Yes | (X) | No | ( ) |
| Union Electric Company | Yes | (X) | No | ( ) |
| Ameren Illinois Company | Yes | (X) | No | ( ) |
Indicate by checkmark whether each registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted 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 and post such files).
| Ameren Corporation | Yes | (X) | No | ( ) |
| Union Electric Company | Yes | (X) | No | ( ) |
| Ameren Illinois Company | Yes | (X) | No | ( ) |
Indicate by checkmark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of each registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
| Ameren Corporation | (X) | |
| Union Electric Company | (X) | |
| Ameren Illinois Company | (X) |
Indicate by checkmark whether each registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
| Large Accelerated Filer | Accelerated Filer | Non-accelerated Filer | Smaller Reporting Company | |||||
| Ameren Corporation | (X) | ( ) | ( ) | ( ) | ||||
| Union Electric Company | ( ) | ( ) | (X) | ( ) | ||||
| Ameren Illinois Company | ( ) | ( ) | (X) | ( ) |
Indicate by checkmark whether each registrant is a shell company (as defined in Rule 12b-2 of the Act).
| Ameren Corporation | Yes | ( ) | No | (X) |
| Union Electric Company | Yes | ( ) | No | (X) |
| Ameren Illinois Company | Yes | ( ) | No | (X) |
As of June 30, 2016, Ameren Corporation had 242,634,798 shares of its $0.01 par value common stock outstanding. The aggregate market value of these shares of common stock (based upon the closing price of the common stock on the New York Stock Exchange on June 30, 2016) held by nonaffiliates was $13,000,372,477. The shares of common stock of the other registrants were held by Ameren Corporation as of June 30, 2016.
The number of shares outstanding of each registrant’s classes of common stock as of January 31, 2017, were as follows:
| Ameren Corporation | Common stock, $0.01 par value per share: 242,634,798 |
| Union Electric Company | Common stock, $5 par value per share, held by Ameren Corporation (parent company of the registrant): 102,123,834 |
| Ameren Illinois Company | Common stock, no par value, held by Ameren Corporation (parent company of the registrant): 25,452,373 |
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the definitive proxy statement of Ameren Corporation and portions of the definitive information statements of Union Electric Company and Ameren Illinois Company for the 2017 annual meetings of shareholders are incorporated by reference into Part III of this Form 10-K.
This combined Form 10-K is separately filed by Ameren Corporation, Union Electric Company, and Ameren Illinois Company. Each registrant hereto is filing on its own behalf all of the information contained in this annual report that relates to such registrant. Each registrant hereto is not filing any information that does not relate to such registrant, and therefore makes no representation as to any such information.
TABLE OF CONTENTS
This report contains “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements should be read with the cautionary statements and important factors under the heading “Forward-looking Statements.” Forward-looking statements are all statements other than statements of historical fact, including those statements that are identified by the use of the words “anticipates,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” and similar expressions.
GLOSSARY OF TERMS AND ABBREVIATIONS
We use the words “our,” “we” or “us” with respect to certain information that relates to Ameren, Ameren Missouri, and Ameren Illinois, collectively. When appropriate, subsidiaries of Ameren Corporation are named specifically as their various business activities are discussed.
2006 Incentive Plan – The 2006 Omnibus Incentive Compensation Plan, which provided for compensatory stock-based awards to eligible employees and directors and was replaced prospectively for new grants by the 2014 Incentive Plan.
2014 Incentive Plan – The 2014 Omnibus Incentive Compensation Plan, which provides for compensatory stock-based awards to eligible employees and directors, effective in April 2014.
AER – Ameren Energy Resources Company, LLC, a former Ameren Corporation subsidiary that consisted of non-rate-regulated operations. In December 2013, AER contributed substantially all of its assets and liabilities, including its ownership interests in Genco, AERG, and Marketing Company, to New AER.
Ameren – Ameren Corporation and its subsidiaries on a consolidated basis. In references to financing activities, acquisition activities, or liquidity arrangements, Ameren is defined as Ameren Corporation, the parent.
Ameren Companies – Ameren Corporation, Ameren Missouri, and Ameren Illinois, collectively, which are individual registrants within the Ameren consolidated group.
Ameren Illinois Electric Distribution – An Ameren and Ameren Illinois financial reporting segment consisting of the rate-regulated electric distribution business of Ameren Illinois.
Ameren Illinois Transmission – An Ameren Illinois financial reporting segment consisting of the rate-regulated electric transmission business of Ameren Illinois.
Ameren Illinois Natural Gas – An Ameren and Ameren Illinois financial reporting segment consisting of the rate-regulated natural gas distribution business of Ameren Illinois.
Ameren Illinois – Ameren Illinois Company, an Ameren Corporation subsidiary that operates rate-regulated electric and natural gas transmission and distribution businesses in Illinois, doing business as Ameren Illinois.
Ameren Missouri – Union Electric Company, an Ameren Corporation subsidiary that operates a rate-regulated electric generation, transmission, and distribution business and a rate-regulated natural gas transmission and distribution business in Missouri, doing business as Ameren Missouri. Ameren Missouri is also defined as a financial reporting segment of Ameren.
Ameren Services – Ameren Services Company, an Ameren Corporation subsidiary that provides support services to Ameren and its subsidiaries.
Ameren Transmission – An Ameren financial reporting segment primarily consisting of the aggregated electric transmission businesses of Ameren Illinois and ATXI.
AMIL – The MISO balancing authority area operated by Ameren, which includes the load of Ameren Illinois and ATXI.
AMMO – The MISO balancing authority area operated by Ameren, which includes the load and energy centers of Ameren Missouri.
ARO – Asset retirement obligations.
ATXI – Ameren Transmission Company of Illinois, an Ameren Corporation subsidiary that is engaged in the construction and operation of electric transmission assets.
Baseload – The minimum amount of electric power delivered or required over a given period of time at a steady rate.
Btu – British thermal unit, a standard unit for measuring the quantity of heat energy required to raise the temperature of one pound of water by one degree Fahrenheit.
CCR – Coal combustion residuals, which include fly ash, bottom ash, boiler slag, and flue gas desulfurization materials generated from burning coal to generate electricity.
CILCO – Central Illinois Light Company, a former Ameren Corporation subsidiary that was merged with CIPS and IP to form Ameren Illinois.
CIPS – Central Illinois Public Service Company, a predecessor to Ameren Illinois.
Clean Power Plan – “Carbon Pollution Emission Guidelines for Existing Stationary Sources: Electric Utility Generating Units,” an EPA rule that establishes emission guidelines for states to follow in developing plans to reduce CO2 emissions from existing fossil-fuel-fired electric generating units.
CO2 – Carbon dioxide.
COL – Nuclear energy center combined construction and operating license.
Cooling degree-days – The summation of positive differences between the average daily temperature and a 65-degree Fahrenheit base. This statistic is useful as an indicator of electricity demand by residential and commercial customers for summer cooling.
Credit Agreements – The Illinois Credit Agreement and the Missouri Credit Agreement, collectively.
CSAPR – Cross-State Air Pollution Rule, an EPA rule that requires states that contribute to air pollution in downwind states to limit air emissions from fossil-fuel-fired electric generating units.
CT – Combustion turbine used primarily for peaking electric generation capacity.
Dekatherm – A standard unit of energy equivalent to one million Btus.
DOE – Department of Energy, a United States government agency.
DRPlus – Ameren Corporation’s dividend reinvestment and direct stock purchase plan.
Dynegy – Dynegy Inc.
EPA – Environmental Protection Agency, a United States government agency.
ERISA – Employee Retirement Income Security Act of 1974, as amended.
Exchange Act – Securities Exchange Act of 1934, as amended.
FAC – Fuel adjustment clause, a fuel and purchased power cost recovery mechanism that allows Ameren Missouri to recover or refund through customer rates 95% of changes in net energy costs greater or less than the amount set in base rates without a traditional rate proceeding, subject to MoPSC prudence reviews.
FASB – Financial Accounting Standards Board, a rulemaking organization that establishes financial accounting and reporting standards in the United States.
FEJA – Future Energy Jobs Act, a 2016 Illinois law affecting electric distribution utilities. This law allows Ameren Illinois to earn a return on its electric energy efficiency investments, decouples electric distribution revenues from sales volumes, offers customer rebates for installing distributed generation, and includes extensions and modifications of certain IEIMA performance-based framework provisions, among other things.
FERC – Federal Energy Regulatory Commission, a United States government agency.
FTRs – Financial transmission rights, financial instruments that specify whether the holder shall pay or receive compensation for certain congestion-related transmission charges between two designated points.
GAAP – Generally accepted accounting principles in the United States.
Heating degree-days – The summation of negative differences between the average daily temperature and a 65-degree Fahrenheit base. This statistic is useful as an indicator of demand for electricity and natural gas for winter heating by residential and commercial customers.
IBEW – International Brotherhood of Electrical Workers, a labor union.
ICC – Illinois Commerce Commission, a state agency that regulates Illinois utility businesses, including Ameren Illinois and ATXI.
IEIMA – Illinois Energy Infrastructure Modernization Act, an Illinois law that established a performance-based formula process for determining electric distribution service rates. By its election to participate in this regulatory framework, Ameren Illinois is required to make incremental capital expenditures to modernize its electric distribution system, to meet performance standards, and to create jobs in Illinois, among other requirements.
Illinois Credit Agreement – Ameren's and Ameren Illinois' $1.1 billion senior unsecured credit agreement. The agreement was amended and restated in December 2016 and, unless extended, will expire in December 2021.
IP – Illinois Power Company, a former Ameren Corporation subsidiary that was merged with CIPS and CILCO to form Ameren Illinois.
IPA – Illinois Power Agency, a state government agency that has broad authority to assist in the procurement of electric power for residential and small commercial customers.
IPH – Illinois Power Holdings, LLC, an indirect wholly owned subsidiary of Dynegy.
IRS – Internal Revenue Service, a United States government agency.
ISRS – Infrastructure system replacement surcharge, a cost recovery mechanism that allows Ameren Missouri to recover natural gas infrastructure replacement costs from customers without a traditional rate proceeding.
IUOE – International Union of Operating Engineers, a labor union.
Kilowatthour – A measure of electricity consumption equivalent to the use of 1,000 watts of power over one hour.
LIUNA – Laborers’ International Union of North America, a labor union.
MATS – Mercury and Air Toxics Standards, an EPA rule that limits emissions of mercury and other air toxics from coal- and oil-fired
electric generating units.
Medina Valley – AmerenEnergy Medina Valley Cogen, LLC, an Ameren Corporation subsidiary.
MEEIA – Missouri Energy Efficiency Investment Act, a Missouri law that allows electric utilities to recover costs related to MoPSC-approved customer energy efficiency programs.
MEEIA 2013 – Ameren Missouri's portfolio of customer energy efficiency programs, net shared benefits, and performance incentive for 2013 through 2015, pursuant to the MEEIA, as approved by the MoPSC in August 2012.
MEEIA 2016 – Ameren Missouri's portfolio of customer energy efficiency programs, throughput disincentive, and performance incentive for March 2016 through February 2019, pursuant to the MEEIA, as approved by the MoPSC in February 2016.
Megawatthour or MWh – One thousand kilowatthours.
MGP – Manufactured gas plant.
MISO – Midcontinent Independent System Operator, Inc., an RTO.
Missouri Credit Agreement – Ameren's and Ameren Missouri's $1 billion senior unsecured credit agreement. The agreement was amended and restated in December 2016 and, unless extended, will expire in December 2021.
Missouri Environmental Authority – Environmental Improvement and Energy Resources Authority of the state of Missouri, a governmental body authorized to finance environmental projects by issuing tax-exempt bonds and notes.
Mmbtu – One million Btus.
Money pool – Borrowing agreements among Ameren and its subsidiaries to coordinate and provide for certain short-term cash and working capital requirements.
Moody’s – Moody’s Investors Service Inc., a credit rating agency.
MoOPC – Missouri Office of Public Counsel.
MoPSC – Missouri Public Service Commission, a state agency that regulates Missouri utility businesses, including Ameren Missouri.
MTM – Mark-to-market.
MW – Megawatt.
Native load – End-use retail customers whom we are obligated to serve by statute, franchise, contract, or other regulatory requirement.
NAV - Net asset value per share.
NEIL – Nuclear Electric Insurance Limited, which includes all of its affiliated companies.
NERC – North American Electric Reliability Corporation.
Net energy costs – Net energy costs, as defined in the FAC, which include fuel and purchased power costs, including transportation, net of off-system sales. Since May 30, 2015, transmission revenues and substantially all transmission charges are excluded from net energy costs as a result of the April 2015 MoPSC electric rate order.
Net shared benefits – Ameren Missouri's share of the present value of lifetime energy savings, net of program costs, designed to offset sales volume reductions resulting from MEEIA 2013 customer energy efficiency programs.
New AER – New Ameren Energy Resources Company, LLC, a limited liability company formed as a direct wholly owned subsidiary of AER. New AER, acquired by IPH in December 2013, included substantially all of the assets and liabilities of AER, except for certain assets and liabilities retained by Ameren.
New Madrid Smelter – Aluminum smelter located in southeast Missouri that was owned by Noranda and is now owned by ARG International AG.
NOx – Nitrogen oxides.
Noranda – Noranda Aluminum, Inc.
NPNS – Normal purchases and normal sales.
NRC – Nuclear Regulatory Commission, a United States government agency.
NSPS – New Source Performance Standards, provisions under the Clean Air Act.
NSR – New Source Review provisions of the Clean Air Act, which include Nonattainment New Source Review and Prevention of Significant Deterioration regulations.
NWPA – Nuclear Waste Policy Act of 1982, as amended.
NYMEX – New York Mercantile Exchange.
NYSE – New York Stock Exchange, Inc.
OATT – Open Access Transmission Tariff.
OCI – Other comprehensive income (loss) as defined by GAAP.
Off-system sales revenues – Revenues from other than native load sales, including wholesale sales.
OTC – Over-the-counter.
PGA – Purchased Gas Adjustment tariffs, which permit prudently incurred natural gas costs to be recovered directly from utility customers without a traditional rate proceeding.
PUHCA 2005 – The Public Utility Holding Company Act of 2005.
QIP – Qualifying infrastructure plant. Costs of qualifying infrastructure natural gas plant are included in an Ameren Illinois recovery mechanism.
Rate base – The basis on which a public utility is permitted to earn an allowed rate of return. This basis is the net investment in assets used to provide utility service, which generally consists of in-service property, plant, and equipment, net of accumulated depreciation and accumulated deferred income taxes, inventories, and, depending on jurisdiction, construction work in progress.
Regulatory lag – The exposure to differences in costs incurred and actual sales volume levels as compared with the associated amounts included in customer rates. Rate increase requests in traditional rate case proceedings can take up to 11 months to be acted upon by the MoPSC and the ICC. As a result, revenue increases authorized by regulators will lag behind changing costs and sales volume levels when based on historical periods.
Revenue requirement – The cost of providing utility service to customers, which is calculated as the sum of a utility's recoverable operating and maintenance expenses, depreciation and amortization expense, taxes, and an allowed return on rate base.
RFP – Request for proposal.
Rockland Capital – Rockland Capital, LLC, together with the special-purpose entity affiliated with and formed by Rockland Capital, LLC, that acquired the Elgin, Gibson City, and Grand Tower natural-gas-fired energy centers in January 2014.
RTO – Regional transmission organization.
S&P – Standard & Poor’s Ratings Services, a credit rating agency.
SEC – Securities and Exchange Commission, a United States government agency.
SERC – SERC Reliability Corporation, one of the regional electric reliability councils organized for coordinating the planning and operation of the nation’s bulk power supply.
SO2 – Sulfur dioxide.
Test year – The selected period of time, typically a 12-month period, for which a utility's historical or forecasted operating results are used to determine the appropriate revenue requirement.
Throughput disincentive – Ameren Missouri's reduced margin caused by the current period's lower sales volume resulting from MEEIA 2016 customer energy efficiency programs. Recovery of this disincentive is designed to make Ameren Missouri earnings neutral each period from the lost margins caused by its MEEIA 2016 customer energy efficiency programs.
UA – United Association of Plumbers and Pipefitters, a labor union.
VBA – A volume balancing adjustment for Ameren Illinois' natural gas operations. As a result of this adjustment, revenues from residential and small nonresidential customers will increase or decrease as billing determinants differ from filed amounts. This adjustment ensures that changes in sales volumes, including deviations from normal weather conditions, do not result in an over- or under-collection of natural gas revenues for these rate classes.
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, strategies, objectives, events, conditions, and financial performance. In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, we are providing this cautionary statement to identify important factors that could cause actual results to differ materially from those anticipated. The following factors, in addition to those discussed within Risk Factors under Part I, Item 1A, of this report, and elsewhere in this report and in our other filings with the SEC, could cause actual results to differ materially from management expectations suggested in such forward-looking statements:
| • | regulatory, judicial, or legislative actions, including any federal income tax reform and changes in regulatory policies and ratemaking determinations, such as those that may result from the complaint case filed in February 2015 with the FERC seeking a reduction in the allowed base return on common equity under the MISO tariff, the unanimous stipulation and agreement filed with the MoPSC in February 2017 that settles Ameren Missouri’s July 2016 electric rate case, and future regulatory, judicial, or legislative actions that change regulatory recovery mechanisms; |
| • | the effect of Ameren Illinois participating in a performance-based formula ratemaking process under the IEIMA, including the direct relationship between Ameren Illinois' return on common equity and 30-year United States Treasury bond yields, and the related financial commitments required by the IEIMA; |
| • | our ability to align overall spending, both operating and capital, with frameworks established by our regulators in our attempt to earn our allowed return on equity; |
| • | 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 any challenges to the tax positions taken by the Ameren Companies; |
| • | the effects on demand for our services resulting from technological advances, including advances in customer energy efficiency and private generation sources, which generate electricity at the site of consumption and are becoming more cost-competitive; |
| • | the effectiveness of Ameren Missouri's customer energy efficiency programs and the related revenues and performance incentives earned under its MEEIA plans; |
| • | the effect of the FEJA on Ameren Illinois, including on the allowed return earned on its customer energy efficiency investments and its ability to achieve the electric energy efficiency saving goals established by the FEJA; |
| • | the timing of increasing capital expenditure and operating |
expense requirements and our ability to recover these costs in a timely manner;
| • | the cost and availability of fuel, such as ultra-low-sulfur coal, natural gas, and enriched uranium used to produce electricity; the cost and availability of purchased power and natural gas for distribution; and the level and volatility of future market prices for such commodities, including our ability to recover the costs for such commodities and our customers' tolerance for the related rate increases; |
| • | 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 ultra-low-sulfur coal used for Ameren Missouri’s compliance with environmental regulations; |
| • | 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 Callaway energy center, or in the absence of insurance the ability to recover uninsured losses from our customers; |
| • | business and economic conditions, including their impact on interest rates, collection of our receivable balances, and demand for our products; |
| • | 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; |
| • | the impact of adopting new accounting guidance and the application of appropriate accounting rules and guidance; |
| • | the impact of weather conditions and other natural phenomena on us and our customers, including the impact of system outages; |
| • | the construction, installation, performance, and cost recovery of generation, transmission, and distribution assets; |
| • | the effects of breakdowns or failures of equipment in the operation of natural gas transmission and distribution systems and storage facilities, such as leaks, explosions, and mechanical problems, and compliance with natural gas safety regulations; |
| • | the effects of our increasing investment in electric transmission projects, our ability to obtain all of the necessary approvals to complete the projects, and the uncertainty as to whether we will achieve our expected returns in a timely manner; |
| • | operation of Ameren Missouri's Callaway energy center, including planned and unplanned outages, and decommissioning costs; |
| • | the effects of strategic initiatives, including mergers, acquisitions, and divestitures; |
| • | the impact of current environmental regulations and new, more stringent, or changing requirements, including those related to CO2, other emissions and discharges, cooling water intake structures, CCR, and energy efficiency, that are enacted over time and that could limit or terminate the operation of certain of Ameren Missouri’s energy centers, increase our 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 portfolio requirements in Missouri; |
| • | labor disputes, work force reductions, future wage and employee benefits costs, including changes in discount rates, mortality tables, and returns on benefit plan assets; |
| • | the inability of our counterparties to meet their obligations with respect to contracts, credit agreements, and financial instruments; |
| • | 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;
| • | legal and administrative proceedings; |
| • | the impact of cyber attacks, which could 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 data and account information; and |
| • | acts of sabotage, war, terrorism, or other intentionally disruptive acts. |
New factors emerge from time to time. Management cannot predict all such factors, nor can it assess the impact of each such factor on the business or the extent to which any such 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.
PART I
Item 1. BUSINESS
GENERAL
Ameren, headquartered in St. Louis, Missouri, is a public utility holding company under PUHCA 2005. Ameren was formed in 1997. Ameren’s primary assets are its equity interests in its subsidiaries, including Ameren Missouri, Ameren Illinois, and ATXI. Ameren’s subsidiaries are separate, independent legal entities with separate businesses, assets, and liabilities. Dividends on Ameren’s common stock and the payment of expenses by Ameren depend on distributions made to it by its subsidiaries.
Below is a summary description of Ameren's principal subsidiaries. Ameren also has various other subsidiaries that conduct other activities, such as the provision of shared services. A more detailed description can be found in Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of this report.
| • | Ameren Missouri operates a rate-regulated electric generation, transmission, and distribution business and a rate-regulated natural gas distribution business in Missouri. |
| • | Ameren Illinois operates rate-regulated electric distribution, electric transmission and natural gas distribution businesses in Illinois. |
| • | ATXI operates a FERC rate-regulated electric transmission business. ATXI is developing MISO-approved electric transmission projects, including the Illinois Rivers, Spoon River, and Mark Twain projects. ATXI is also evaluating competitive electric transmission investment opportunities outside of MISO as they arise. |
The following table presents our total employees at December 31, 2016:
| Ameren Missouri | 3,707 | |
| Ameren Illinois | 3,429 | |
| Ameren Services | 1,493 | |
| Ameren | 8,629 |
At December 31, 2016, the IBEW, the IUOE, the LIUNA, and the UA labor unions collectively represented about 53% of Ameren’s total employees. They represented 63% and 58% of the employees at Ameren Missouri and Ameren Illinois, respectively. The collective bargaining agreements have terms ranging from two and one half years to six years; they expire between 2017 and 2020.
For additional information about the development of our businesses, our business operations, and factors affecting our operations and financial position, see Management’s Discussion and Analysis of Financial Condition and Results of Operations under Part II, Item 7, of this report and Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of this report.
BUSINESS SEGMENTS
In the fourth quarter of 2016, Ameren determined it had four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. The Ameren Missouri segment includes all of the operations of Ameren Missouri. Ameren Illinois Electric Distribution consists of the electric distribution business of Ameren Illinois. Ameren Illinois Natural Gas consists of the natural gas business of Ameren Illinois. Ameren Transmission is primarily composed of the aggregated electric transmission businesses of Ameren Illinois and ATXI.
Ameren Missouri has one segment. Ameren Illinois has
three segments: Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Illinois Transmission.
An illustration of Ameren and Ameren Illinois' reporting structures is provided below. For additional information on
reporting segments, see Note 1 – Summary of Significant Accounting Policies and Note 16 – Segment Information under Part II, Item 8, of this report.
(a) Ameren Transmission segment includes associated Ameren (parent) interest charges. It also includes Ameren Transmission Company, LLC, ATX East, LLC and ATX Southwest, LLC.
RATES AND REGULATION
Rates
The rates that Ameren Missouri, Ameren Illinois, and ATXI are allowed to charge for their utility services significantly influence the results of operations, financial position, and liquidity of these companies and Ameren. The electric and natural gas utility industry is highly regulated. The utility rates charged to customers are determined by governmental entities, including the MoPSC, the ICC, and the FERC. Decisions by these entities are influenced by many factors, including the cost of providing service, the prudency of expenditures, the quality of service, regulatory staff knowledge and experience, customer intervention, and economic conditions, as well as social and political views. Decisions made by these governmental entities regarding rates are largely outside of our control. These decisions, as well as the regulatory lag involved in the process of getting new rates approved, could have a material adverse effect on the results of operations, financial position, and liquidity of the Ameren Companies. The extent of the regulatory lag varies for
each of Ameren's electric and natural gas jurisdictions, with the Ameren Transmission and Ameren Illinois Electric Distribution businesses experiencing the least amount of regulatory lag. Depending on the jurisdiction, the effects of regulatory lag are mitigated by various means, including the use of a future test year, the implementation of trackers and riders, the level and timing of expenditures, and regulatory frameworks that include annual revenue requirement reconciliations.
The MoPSC regulates rates and other matters for Ameren Missouri. The ICC regulates rates and other matters for Ameren Illinois, as well as non-rate utility matters for ATXI. ATXI does not have retail distribution customers; therefore, the ICC does not have authority to regulate ATXI's rates. The FERC regulates Ameren Missouri's, Ameren Illinois', and ATXI's cost-based rates for the wholesale transmission and distribution of energy in interstate commerce and various other matters discussed below under General Regulatory Matters.
The following table summarizes, by rate jurisdiction, the key terms of the rate orders in effect for customer billings for each of Ameren's rate-regulated utilities as of January 1, 2017:
| Rate Regulator | Allowed Return on Equity | Percent of Common Equity | Rate Base (in billions) | Portion of Ameren's 2016 Operating Revenues(a) | |
| Ameren Missouri | |||||
| Electric service(b)(c) | MoPSC | 9.53% | 51.8% | $7.0 | 55% |
| Natural gas delivery service(d) | MoPSC | (d) | 52.9% | $0.2 | 2% |
| Ameren Illinois | |||||
| Electric distribution delivery service(e) | ICC | 8.64% | 50.0% | $2.6 | 26% |
| Natural gas delivery service(f) | ICC | 9.60% | 50.0% | $1.2 | 12% |
| Electric transmission service(g) | FERC | 10.82% | 51.6% | $1.4 | 3% |
| ATXI | |||||
| Electric transmission service(g) | FERC | 10.82% | 56.3% | $1.1 | 2% |
| (a) | Includes pass-through costs recovered from customers, such as purchased power for electric distribution delivery service and natural gas purchased for resale for natural gas delivery service, and intercompany eliminations. |
| (b) | Ameren Missouri's electric generation, transmission, and delivery service rates are bundled together and charged to retail customers under a combined electric service rate. |
| (c) | Based on the MoPSC's April 2015 rate order. Pending MoPSC approval of a stipulation and agreement filed in February 2017, Ameren Missouri may have new electric service rates effective on or before March 20, 2017. The February 2017 stipulation and agreement did not specify the common equity percentage, the rate base, or the allowed return on common equity. |
| (d) | Based on the MoPSC's January 2011 rate order. This rate order did not specify the allowed return on equity. It includes the impacts on rate base and operating revenues relating to th |
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Item 1A. RISK FACTORS
Investors should review carefully the following material risk factors and the other information contained in this report. The risks that the Ameren Companies face are not limited to those in this section. There may be further risks and uncertainties that are not presently known or that are not currently believed to be material that may adversely affect the results of operations, financial position, and liquidity of the Ameren Companies.
REGULATORY AND LEGISLATIVE RISKS
We are subject to extensive regulation of our businesses, which could adversely affect our results of operations, financial position, and liquidity.
We are subject to federal, state, and local regulation. This extensive regulatory framework, some of which is more specifically identified in the following risk factors, regulates, among other matters, the electric and natural gas utility industries; rate and cost structure of utilities; operation of nuclear energy centers; construction and operation of generation, transmission, and distribution facilities; acquisition, disposal, depreciation and amortization of assets and facilities; electric transmission system reliability; and wholesale and retail competition. In the planning and management of our operations, we must address the effects of existing and proposed laws and regulations and potential changes in the regulatory framework,
including initiatives by federal and state legislatures, RTOs, utility regulators, and taxing authorities. Significant changes in the nature of the regulation of our businesses could require changes to our business planning and management of our businesses and could adversely affect our results of operations, financial position, and liquidity. Failure to obtain adequate rates or regulatory approvals in a timely manner; failure to obtain necessary licenses or permits from regulatory authorities; the impact of new or modified laws, regulations, standards, interpretations, or other legal requirements; or increased compliance costs could adversely affect our results of operations, financial position, and liquidity.
The electric and natural gas rates that we are allowed to charge are determined through regulatory proceedings, which are subject to intervention and appeal, and are also subject to legislative actions, which are largely outside of our control. Any events that prevent us from recovering our costs in a timely manner or from earning adequate returns on our investments could adversely affect our results of operations, financial position, and liquidity.
The rates that we are allowed to charge for our utility services significantly influence our results of operations, financial position, and liquidity. The electric and natural gas utility industry is highly regulated. The utility rates charged to customers are determined by governmental entities, including the MoPSC, the ICC, and the FERC. Decisions by these entities are influenced by many factors, including the cost of providing service, the prudency of expenditures, the quality of service, regulatory staff knowledge and experience, customer intervention, and economic conditions, as well as social and political views. Decisions made by these governmental entities regarding rates are largely outside of our control. We are exposed to regulatory lag and cost disallowances to varying degrees by jurisdiction, which, if unmitigated, could adversely affect our results of operations, financial position, and liquidity. Rate orders are also subject to appeal, which creates additional uncertainty as to the rates that we will ultimately be allowed to charge for our services. From time to time, our regulators may approve trackers, riders, or other mechanisms that allow electric or natural gas rates to be adjusted without a traditional rate proceeding. These mechanisms are not permanent and could be changed or terminated.
Ameren Missouri's electric and natural gas utility rates and Ameren Illinois' natural gas utility rates are typically established in regulatory proceedings that take up to 11 months to complete. Ameren Missouri's rates established in those proceedings are primarily based on historical costs and revenues. Ameren Illinois' natural gas rates established in those proceedings are based on estimated future costs and revenues. Thus the rates that we are allowed to charge for utility services may not match our actual costs at any given time.
Rates include an allowed rate of return on investments established by the regulator. Although rate regulation is premised on providing an opportunity to earn a reasonable rate of return on invested capital, there can be no assurance that the regulator will determine that our costs were prudently incurred or that the
regulatory process will result in rates that will produce full recovery of such costs or provide for an opportunity to earn a reasonable return on those investments.
In years when capital investments and operations costs rise or customer usage declines below those levels reflected in rates, we may not be able to earn the allowed return established by the regulator. This could result in the deferral or cancellation of planned capital investments, which could reduce the rate base investments on which we earn a rate of return. Additionally, increasing rates could result in regulatory or legislative actions, as well as competitive or political pressures, all of which could adversely affect our results of operations, financial position, and liquidity.
As a result of its participation in the performance-based formula ratemaking process established pursuant to the IEIMA, Ameren Illinois’ return on equity for its electric distribution business is directly correlated to yields on United States Treasury bonds. Additionally, Ameren Illinois is required to achieve certain performance standards and capital spending levels. Failure to meet these requirements could adversely affect Ameren's and Ameren Illinois' results of operations, financial position, and liquidity.
Ameren Illinois is participating in the performance-based formula ratemaking process established pursuant to the IEIMA for its electric distribution business. The ICC annually reviews Ameren Illinois’ rate filings under the IEIMA for reasonableness and prudency. If the ICC were to conclude that Ameren Illinois’ costs were not prudently incurred, the ICC would disallow recovery of such costs.
The return on equity component of the formula rate is equal to the calendar year average of the monthly yields of 30-year United States Treasury bonds plus 580 basis points. Therefore, Ameren Illinois’ annual return on equity under the formula ratemaking process for its electric distribution business is directly correlated to the yields on such bonds, which are outside of Ameren Illinois’ control. A 50 basis point change in the average monthly yields of the 30-year United States Treasury bonds would result in an estimated $7 million change in Ameren's and Ameren Illinois' net income based on its 2017 projected rate base.
Ameren Illinois is also subject to performance standards. Failure to achieve the standards would result in a reduction in the company’s allowed return on equity calculated under the formula. The IEIMA provides for return on equity penalties totaling 34 basis points in each of 2017 through 2018 and 38 basis points in each year from 2019 through 2022 if the performance standards are not met.
Between 2012 and 2021, Ameren Illinois is required to invest a total of $625 million in capital projects to modernize its distribution system incremental to its average annual electric distribution service capital projects of $228 million for calendar years 2008 through 2010. If Ameren Illinois does not meet its investment commitments under IEIMA, Ameren Illinois would no longer be eligible to annually update its performance-based
formula rates under IEIMA.
When the IEIMA performance-based formula ratemaking process expires at the end of 2022 Ameren Illinois will be required to establish future rates through a traditional rate proceeding with the ICC, which might not result in rates that produce a full or timely recovery of costs or provide for an adequate return on investments.
We are subject to various environmental laws and regulations. Significant capital expenditures are required to achieve and to maintain compliance with these laws and regulations. Failure to comply with these laws and regulations could result in the closing of facilities, alterations to the manner in which these facilities operate, increased operating costs, or exposure to fines and liabilities, all of which could adversely affect our results of operations, financial position, and liquidity.
We are subject to various environmental laws and regulations enforced by federal, state, and local authorities. The development and operation of electric generation, transmission, and distribution facilities and natural gas storage, transmission, and distribution facilities, can trigger compliance with diverse environmental laws and regulations. These laws and regulations address emissions, discharges to water, water usage, impacts to air, land, and water, and chemical and waste handling. Complex and lengthy processes are required to obtain and renew approvals, permits, and licenses for new, existing or modified facilities. Additionally, the use and handling of various chemicals or hazardous materials require release prevention plans and emergency response procedures.
We are also subject to liability under environmental laws that address the remediation of environmental contamination of property currently or formerly owned by us or by our predecessors, as well as property contaminated by hazardous substances that we generated. Such properties include MGP sites and third-party sites, such as landfills. Additionally, private individuals may seek to enforce environmental laws and regulations against us. They could allege injury from exposure to hazardous materials, allege a failure to comply with environmental laws and regulations, seek to compel remediation of environmental contamination, or seek to recover damages resulting from that contamination.
The EPA has promulgated environmental regulations that have a significant impact on the electric utility industry. Over time, compliance with these regulations could be costly for Ameren Missouri, which operates coal-fired power plants. As of December 31, 2016, Ameren Missouri’s fossil-fueled energy centers represented 18% and 34% of Ameren’s and Ameren Missouri’s rate base, respectively. Regulations impacting the electric utility industry include the regulation of CO2 emissions from existing power plants through the Clean Power Plan and from new power plants through the revised NSPS; the CSAPR, which requires further reductions of SO2 emissions and NOx emissions from power plants; a regulation governing management and storage of CCR; the MATS, which requires reduction of emissions of
mercury, toxic metals, and acid gases from power plants; revised NSPS for particulate matter, SO2, and NOx emissions from new sources; effluent standards applicable to wastewater discharges from power plants; and regulations under the Clean Water Act that could require significant capital expenditures, such as modifications to water intake structures at Ameren Missouri’s energy centers. The EPA also periodically reviews and revises national ambient air quality standards, including those standards associated with emissions from power plants, such as particulate matter, ozone, SO2 and NOx. Certain of these regulations are being or are likely to be challenged through litigation, so their ultimate implementation, as well as the timing of any such implementation, is uncertain. Although many details of future regulations are unknown, the individual or combined effects of recent environmental regulations could result in significant capital expenditures and increased operating costs for Ameren and Ameren Missouri.
Ameren is also subject to risks from changing or conflicting interpretations of existing laws and regulations. The EPA is engaged in an enforcement initiative to determine whether coal-fired power plants failed to comply with the requirements of the NSR and NSPS provisions under the Clean Air Act when the power plants implemented modifications. In January 2011, the Department of Justice, on behalf of the EPA, filed a complaint against Ameren Missouri in the United States District Court for the Eastern District of Missouri. The complaint, as amended in October 2013, alleged that in performing projects at its Rush Island coal-fired energy center in 2007 and 2010, Ameren Missouri violated provisions of the Clean Air Act and Missouri law. The litigation has been divided into two phases: liability and remedy. In January 2017, the district court issued a liability ruling that the projects violated provisions of the Clean Air Act and Missouri law. The case will now proceed to the second phase to determine the actions required to remedy the violations found in the liability phase of the litigation. The EPA previously withdrew all claims for penalties and fines.
The ultimate resolution of this matter could have a material adverse effect on the results of operations, financial position, and liquidity of Ameren and Ameren Missouri. Among other things and subject to economic and regulatory considerations, resolution of this matter could result in increased capital expenditures for the installation of pollution control equipment, as well as increased operations and maintenance expenses.
The Clean Power Plan sets forth CO2 emissions standards applicable to existing power plants. The rule was stayed by the United States Supreme Court in February 2016, pending the outcome of various legal challenges. If upheld and implemented, the Clean Power Plan would require Missouri and Illinois to reduce CO2 emissions from power plants within their states significantly below 2005 levels by 2030. The rule contains interim compliance periods commencing in 2022 that would require each state to demonstrate progress in achieving its CO2 emissions reduction target. Ameren continues to evaluate the Clean Power Plan's potential impacts to its operations, including those related to electric system reliability, and to its level of investment in customer energy efficiency programs, renewable energy, and
other forms of generation. Significant uncertainty exists regarding the impact of the Clean Power Plan as its implementation will depend upon plans to be developed by the states. Numerous legal challenges are pending, which could result in the rule being declared invalid or the nature and timing of CO2 emissions reductions being revised. All implementation requirements are deferred until such time as these legal challenges are concluded. Appeals are not expected to conclude prior to 2018. We cannot predict the outcome of such legal challenges or their impact on our results of operations, financial position, or liquidity. If the rule is ultimately upheld and not rescinded or altered significantly by the new federal administration, compliance measures could result in the closure or alteration of the operation of some of Ameren Missouri’s coal and natural-gas-fired energy centers, which could in turn result in increased operating costs and require Ameren Missouri to make unplanned or accelerated capital expenditures.
Ameren and Ameren Missouri have incurred and expect to incur significant costs related to environmental compliance and site remediation. New or revised environmental regulations, enforcement initiatives, or legislation could result in a significant increase in capital expenditures and operating costs, decreased revenues, increased financing requirements, penalties or fines, or reduced operations of some of Ameren Missouri's coal-fired energy centers, which, in turn, could lead to increased liquidity needs and higher financing costs. Actions required to ensure that our facilities and operations are in compliance with environmental laws and regulations could be prohibitively expensive for Ameren Missouri if the costs are not fully recovered through rates. Environmental laws could require Ameren Missouri to close or to alter significantly the operations of its energy centers. If Ameren Missouri requests recovery of capital expenditures and costs for environmental compliance through rates, the MoPSC could deny recovery of all or a portion of these costs, prevent timely recovery, or make changes to the regulatory framework in an effort to minimize rate volatility and customer rate increases. Capital expenditures and costs to comply with future legislation or regulations that are not recoverable through rates might result in Ameren Missouri closing coal-fired energy centers earlier than planned, which would lead to an impairment of assets and reduced revenues. We are unable to predict the ultimate impact of these matters on our results of operations, financial positions, and liquidity.
Following recent changes in the leadership of the federal government, there have been various legislative options proposed to reform the federal income tax code. Whether the federal income tax code will be reformed is currently unknown, but any such changes may adversely affect our results of operations, financial position, and liquidity.
Since the 2016 presidential and congressional elections, there have been various legislative options proposed to reform the federal income tax code, including reducing the statutory federal corporate income tax rate; allowing a current tax deduction for all new capital investments; and eliminating the interest deduction as well as other modifications that would change the amount of income subject to income tax. Any federal
income tax reform would ultimately affect the rates we charge our customers. A reduction in the statutory federal income tax rate would result in a reduction of deferred tax assets and liabilities currently recorded. A lower federal statutory income tax rate may result in a significant one-time charge to our results of operations as a result of the revaluation of our deferred tax assets not attributable to our rate-regulated businesses. Additionally, a lower statutory federal income tax rate may result in a significant reduction in revenues and liquidity as a result of both the required return to customers of excess deferred tax liabilities previously funded by customers over some time period yet to be determined and the reduced collection of taxes in customer rates, each without an immediate reduction in our cash tax obligations. Also, changes that would ultimately result in lower taxable income in the future could prevent us from using all of our tax carryforward benefits before they expire. A current tax deduction for all new capital investments could reduce the level of our rate base growth from current expectations. Although the specific changes and the ultimate timing of federal income tax reform, if implemented at all, are currently unknown, federal income tax reform may adversely affect our results of operations, financial position, and liquidity.
Customers’, legislators’, and regulators’ opinions of us are affected by many factors, including system reliability, implementation of our investment plans, protection of customer information, rates, and media coverage. To the extent that customers, legislators, or regulators have or develop a negative opinion of us, our results of operations, financial position, and liquidity could be adversely affected.
Service interruptions due to failures of equipment as a result of severe or destructive weather or other causes, and the ability of Ameren Missouri and Ameren Illinois to respond promptly to such failures, can affect customer satisfaction. In addition to system reliability issues, the success of modernization efforts, such as those being undertaken for Ameren Illinois’ electric and natural gas delivery systems, our ability to safeguard sensitive customer information, and other actions can affect customer satisfaction. The level of rates, the timing and magnitude of rate increases, and volatility of rates can also affect customer satisfaction. Customers', legislators', and regulators' opinions of us can also be affected by media coverage, including social media, which may include information, whether factual or not, that damages our brand and reputation.
If customers, legislators, or regulators have or develop a negative opinion of us and our utility services, this could result in increased regulatory oversight and could affect the returns on common equity we are allowed to earn. Additionally, negative opinions about us could make it more difficult for our utilities to achieve favorable legislative or regulatory outcomes. Negative opinions could also result in sales volume reductions or increased use of distributed generation by our customers. Any of these consequences could adversely affect our results of operations, financial position, and liquidity.
We are subject to federal regulatory compliance and proceedings, which exposes us to the potential for
regulatory penalties and other sanctions.
The FERC can impose civil penalties of $1 million per violation per day for violation of its regulations, rules, and orders, including mandatory NERC reliability standards. As owners and operators of bulk power transmission systems and electric energy centers, we are subject to mandatory NERC reliability standards, including cybersecurity standards. Compliance with these mandatory reliability standards may subject us to higher operating costs and may result in increased capital expenditures. If we were found not to be in compliance with these mandatory reliability standards, FERC regulations, rules, and orders, we could incur substantial monetary penalties and other sanctions, which could adversely affect our results of operations, financial position, and liquidity. The FERC also conducts audits and reviews of Ameren Missouri's, Ameren Illinois', and ATXI's accounting records to assess the accuracy of its formula ratemaking process, and it can require refunds to customers for previously billed amounts, with interest.
OPERATIONAL RISKS
The construction of and capital improvements to our electric and natural gas utility infrastructure involve substantial risks. These risks include escalating costs, unsatisfactory performance by the projects when completed, the inability to complete projects as scheduled, cost disallowances by regulators, and the inability to earn an adequate return on invested capital, any of which could result in higher costs and facility closures.
We expect to incur significant capital expenditures to maintain and improve our electric and natural gas utility infrastructure and to comply with existing environmental regulations. We estimate that we will invest up to $11.2 billion (Ameren Missouri – up to $4.2 billion; Ameren Illinois – up to $6.4 billion; ATXI – up to $0.6 billion) of capital expenditures from 2017 through 2021. These estimates include allowance for equity funds used during construction. Investments in Ameren’s rate-regulated operations are expected to be recoverable from ratepayers, but they are subject to prudence reviews and are exposed to regulatory lag of varying degrees by jurisdiction.
Our ability to complete construction projects successfully within projected estimates is contingent upon many variables and subject to substantial risks. These variables include, but are not limited to, project management expertise and escalating costs for materials and labor. Delays in obtaining permits, shortages in materials and qualified labor, suppliers and contractors who do not perform as required under their contracts, changes in the scope and timing of projects, the inability to raise capital on reasonable terms, or other events beyond our control could affect the schedule, cost, and performance of these projects. There is a risk that a power plant may not be permitted to continue to operate if pollution control equipment is not installed by prescribed deadlines or does not perform as expected. Should any such pollution control equipment not be installed on time or not perform as expected, Ameren Missouri could be subject to additional costs and to the loss of its investment in the project or
facility. All of these project and construction risks could adversely affect our results of operations, financial position, and liquidity.
Ameren and Ameren Illinois may not be able to execute their electric transmission investment plans or to realize the expected return on those investments.
Ameren, through ATXI and Ameren Illinois, is investing significant capital resources in electric transmission. These investments are based on the FERC's regulatory framework and a rate of return on common equity that is currently higher than that allowed by our state commissions. However, the FERC regulatory framework and rate of return are subject to changes, including changes as a result of third-party complaints and challenges at the FERC. The regulatory framework may be less favorable or the rate of return may be lower in the future. A pending complaint case was filed with the FERC in February 2015 that could reduce the allowed return on common equity and could require customer refunds. A 50 basis point reduction in the FERC-allowed return on common equity would reduce Ameren's and Ameren Illinois' earnings by an estimated $7 million and $4 million, respectively, based on each company's 2017 projected rate base.
A significant portion of Ameren's electric transmission investments consists of three separate projects to be constructed by ATXI, which have been approved by MISO as multi-value projects. ATXI's total investment in the three projects is expected to be more than $1.6 billion. The last of these projects is expected to be completed in 2019; however, further delays in obtaining the assents for road crossings could delay the completion date of the Mark Twain project. A failure by ATXI to complete these three projects on time and within projected cost estimates could adversely affect Ameren's results of operations, financial position, and liquidity.
The FERC has issued orders, which are subject to ongoing litigation, eliminating the right of first refusal for an electric utility to construct within its service territory certain new transmission projects for which there will be regional cost sharing. If these orders are upheld by the courts, Ameren would need to compete to build certain future electric transmission projects in its subsidiaries' service territories. Such competition could limit Ameren's future transmission investment. Conversely, if such FERC orders are not upheld by the courts, the right of first refusal would be expected to be reinstated. In such event, Ameren may lose opportunities to construct electric transmission assets outside of its subsidiaries' service territories and outside of MISO.
Our electric generation, transmission, and distribution facilities are subject to operational risks that could adversely affect our results of operations, financial position, and liquidity.
Our financial performance depends on the successful operation of electric generation, transmission, and distribution facilities. Operation of electric generation, transmission, and distribution facilities involves many risks, including:
| • | facility shutdowns due to operator error or a failure of |
equipment or processes;
| • | longer-than-anticipated maintenance outages; |
| • | aging infrastructure that may require significant expenditures to operate and maintain; |
| • | 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 ultra-low-sulfur coal used for Ameren Missouri’s compliance with environmental regulations; |
| • | lack of adequate water required for cooling plant operations; |
| • | labor disputes; |
| • | inability to comply with regulatory or permit requirements, including those relating to environmental laws; |
| • | disruptions in the delivery of electricity to our customers; |
| • | handling, storage, and disposition of CCR; |
| • | unusual or adverse weather conditions or other natural disasters, including severe storms, droughts, floods, tornadoes, earthquakes, solar flares, and electromagnetic pulses; |
| • | accidents that might result in injury or loss of life, extensive property damage, or environmental damage; |
| • | cybersecurity risks, including loss of operational control of Ameren Missouri's energy centers and our transmission and distribution systems and loss of data, such as customer data and account information through insider or outsider actions; |
| • | failure of other operators' facilities and the effect of that failure on our electric system and customers; |
| • | the occurrence of catastrophic events such as fires, explosions, acts of sabotage or terrorism, pandemic health events, or other similar occurrences; |
| • | limitations on amounts of insurance available to cover losses that might arise in connection with operating our electric generation, transmission, and distribution facilities; and |
| • | other unanticipated operations and maintenance expenses and liabilities. |
Ameren Missouri’s ownership and operation of a nuclear energy center creates business, financial, and waste disposal risks.
Ameren Missouri’s ownership of the Callaway energy center subjects it to the risks associated with nuclear generation, including:
| • | potential harmful effects on the environment and human health resulting from radiological releases associated with the operation of nuclear facilities and the storage, handling, and disposal of radioactive materials; |
| • | continued uncertainty regarding the federal government's plan to permanently store spent nuclear fuel and the risk of being required to provide for long-term storage of spent nuclear fuel at the Callaway energy center; |
| • | limitations on the amounts and types of insurance available to cover losses that might arise in connection with the Callaway energy center or other United States nuclear facilities; |
| • | uncertainties with respect to contingencies and retrospective premium assessments relating to claims at the Callaway |
energy center or any other United States nuclear facilities;
| • | public and governmental concerns about the safety and adequacy of security at nuclear facilities; |
| • | uncertainties with respect to the technological and financial aspects of decommissioning nuclear facilities at the end of their licensed lives; |
| • | limited availability of fuel supply and our reliance on licensed fuel assemblies that are fabricated by a single supplier; |
| • | costly and extended outages for scheduled or unscheduled maintenance and refueling; and |
| • | potential adverse effects of a natural disaster, acts of sabotage or terrorism, including cyber attack, or any accident leading to release of nuclear contamination. |
The NRC has broad authority under federal law to impose licensing and safety requirements for nuclear facilities. In the event of noncompliance, the NRC has the authority to impose fines or to shut down a unit, or both, depending upon its assessment of the severity of the situation, until compliance is achieved. Revised safety requirements promulgated from time to time by the NRC could necessitate substantial capital expenditures at nuclear facilities such as the Callaway energy center. In addition, if a serious nuclear incident were to occur, it could adversely affect Ameren's and Ameren Missouri’s results of operations, financial condition, and liquidity. A major incident at a nuclear facility anywhere in the world could cause the NRC to limit or prohibit the operation of any domestic nuclear unit and could also cause the NRC to impose additional conditions or requirements on the industry, which could increase costs and result in additional capital expenditures. NRC standards relating to seismic risk require Ameren Missouri to further evaluate the impact of an earthquake on its Callaway energy center due its proximity to a fault line, which could require the installation of additional capital equipment.
Our natural gas distribution and storage activities involve numerous risks that may result in accidents and other operating risks and costs that could adversely affect our results of operations, financial position, and liquidity.
Inherent in our natural gas distribution and storage activities are a variety of hazards and operating risks, such as leaks, explosions, mechanical problems and cybersecurity risks, which could cause substantial financial losses. In addition, these hazards could result in serious injury, loss of human life, significant damage to property, environmental impacts, and impairment of our operations, which in turn could lead us to incur substantial losses. The location of distribution mains and storage facilities near populated areas, including residential areas, business centers, industrial sites, and other public gathering places, could increase the level of damages resulting from these risks. A major domestic incident involving natural gas systems could lead to additional capital expenditures and increased regulation of natural gas utilities. The occurrence of any of these events could adversely affect our results of operations, financial position, and liquidity.
Significant portions of our electric generation, transmission, and distribution facilities and natural gas
transmission and distribution facilities are aging. This aging infrastructure may require additional maintenance expenditures or may require replacement, which could adversely affect our results of operations, financial position, and liquidity.
Our aging infrastructure may pose risks to system reliability and expose us to expedited or unplanned capital expenditures and operating costs. All of Ameren Missouri’s coal-fired energy centers were constructed prior to 1978, and the Callaway nuclear energy center began operating in 1984. The age of these energy centers increases the risks of unplanned outages, reduced generation output, and higher maintenance expense. If, at the end of its life, an energy center's cost has not been fully recovered, Ameren Missouri may be adversely affected if such cost is not allowed in rates by the MoPSC. Aging transmission and distribution facilities are more prone to failure than new facilities, which results in higher maintenance expense and the need to replace these facilities with new infrastructure. Even if the system is properly maintained, its reliability may ultimately deteriorate and negatively affect our ability to serve our customers, which could result in additional oversight by our regulators. The frequency and duration of customer outages are among IEIMA performance standards. Therefore, failure to achieve these standards will result in a reduction in Ameren Illinois' allowed return on equity on electric distribution assets. The higher maintenance costs associated with aging infrastructure and capital expenditures for new replacement infrastructure could cause additional rate volatility for our customers, resistance by our regulators to allow customer rate increases, and/or regulatory lag in some of our jurisdictions, any of which could adversely affect our results of operations, financial position, and liquidity.
Energy conservation, energy efficiency, distributed generation, energy storage, and other factors that reduce energy demand could adversely affect our results of operations, financial position, and liquidity.
Requirements and incentives to reduce energy consumption have been proposed by regulatory agencies and introduced by legislatures. Conservation and energy efficiency programs are designed to reduce energy demand. Without a regulatory mechanism to ensure recovery, a decline in usage will result in an under-recovery of our revenue requirement. Ameren Missouri is exposed to declining usage losses from energy efficiency efforts not related to its MEEIA programs, as well as from distributed generation sources such as solar panels. In Illinois, the FEJA includes a provision, beginning in 2018, that will reduce Ameren Illinois' allowed return only on electric energy efficiency investments if certain energy savings targets are not achieved. Additionally, macroeconomic factors resulting in low economic growth or contraction within our service territories could reduce energy demand.
Technological advances could reduce or change customer electricity consumption. Ameren Missouri generates power at utility-scale energy centers to achieve economies of scale and to produce power at a competitive cost. Some distributed
generation technologies have become more cost-competitive, with decreasing costs expected in the future. The costs of these distributed generation technologies may decline over time to a level that is competitive with that of Ameren Missouri's energy centers. Additionally, technological advances related to energy storage may be coupled with distributed generation to reduce the demand for our electric utility services. Increased adoption of these technologies could decrease our revenues if customers cease to use our generation, transmission, and distribution services at current levels. Ameren Missouri might incur stranded costs, which ultimately might not be recovered through rates.
We are subject to employee work force factors that could adversely affect our operations.
Our businesses depend upon our ability to employ and retain key officers and other skilled professional and technical employees. A significant portion of our work force is nearing retirement, including many employees with specialized skills, such as maintaining and servicing our electric and natural gas infrastructure and operating our energy centers. We are also party to collective bargaining agreements that collectively represent about 53% of Ameren’s total employees. Any work stoppage experienced in connection with negotiations of collective bargaining agreements could adversely affect our operations.
Our operations are subject to acts of terrorism, cyber attacks, and other intentionally disruptive acts.
Like other electric and natural gas utilities, our energy centers, fuel storage facilities, transmission and distribution facilities, and information systems may be affected by terrorist activities and other intentionally disruptive acts, including cyber attacks, which could disrupt our ability to produce or distribute our energy products. Within our industry, there have been attacks on energy infrastructure such as substations and related assets in the past, and there may be more attacks in the future. Any such incident could limit our ability to generate, purchase, or transmit power or natural gas and could have significant regional economic consequences. Any such disruption could result in a significant decrease in revenues, a significant increase in costs including those for repair, or adversely impact economic activity in our service territory which could adversely affect our results of operations, financial position, and liquidity.
Our industry has seen an increase in the number and sophistication of cyber attacks. A security breach at our physical assets or in our information systems could affect the reliability of the transmission and distribution system, disrupt electric generation, and/or subject us to financial harm associated with theft or inappropriate release of certain types of information, including sensitive customer and employee data. Many of our suppliers, vendors, contractors, and information technology providers have access to our systems that support our operations and maintain customer and employee data. A breach of these third-party systems could adversely affect our business as if it was a breach of our own system. If a significant breach occurred, our reputation could be adversely affected, customer confidence
could be diminished, or we could be subject to legal claims, any of which could result in a significant decrease in revenues or significant costs for remedying the impacts of such a breach. Our generation, transmission, and distribution systems are part of an interconnected system. Therefore, a disruption caused by a cyber incident at another utility, electric generator, RTO, or commodity supplier could also adversely affect our businesses. In addition, new regulations could require changes in our security measures and result in increased costs. The occurrence of any of these events could adversely affect our results of operations, financial position, and liquidity.
FINANCIAL, ECONOMIC, AND MARKET RISKS
Our businesses are dependent on our ability to access the capital markets successfully. We might not have access to sufficient capital in the amounts and at the times needed.
We rely on short-term and long-term debt as significant sources of liquidity and funding for capital requirements not satisfied by our operating cash flow, as well as to refinance long-term debt. By the end of 2018, $803 million and $707 million of senior secured notes are scheduled to mature at Ameren Missouri and Ameren Illinois, respectively. Ameren Missouri and Ameren Illinois expect to refinance these senior secured notes. In addition, the Ameren Companies may refinance a portion of their outstanding short-term debt with long-term debt in 2017. The inability to raise debt or equity capital on reasonable terms, or at all, could negatively affect our ability to maintain and to expand our businesses. Events beyond our control, such as a recession or extreme volatility in the debt, equity, or credit markets, might create uncertainty that could increase our cost of capital or impair or eliminate our ability to access the debt, equity, or credit markets, including our ability to draw on bank credit facilities. Any adverse change in our credit ratings could reduce access to capital and trigger collateral postings and prepayments. Such changes could also increase the cost of borrowing and the costs of fuel, power, and natural gas supply, among other things, which could adversely affect our results of operations, financial position, and liquidity. Certain Ameren subsidiaries, such as ATXI, rely on Ameren for access to capital. Circumstances that limit Ameren’s access to capital could impair its ability to provide those subsidiaries with needed capital.
Ameren’s holding company structure could limit its ability to pay common stock dividends and to service its debt obligations.
Ameren is a holding company; therefore, its primary assets are its investments in the common stock of its subsidiaries, including Ameren Missouri, Ameren Illinois, and ATXI. As a result, Ameren’s ability to pay dividends on its common stock depends on the earnings of its subsidiaries and the ability of its subsidiaries to pay dividends or otherwise transfer funds to Ameren. Similarly, Ameren’s ability to service its debt obligations is dependent upon the earnings of its operating subsidiaries and the distribution of those earnings and other payments, including payments of principal and interest under intercompany indebtedness. The payment of dividends to Ameren by its
subsidiaries in turn depends on their results of operations and available cash and other items affecting retained earnings. Ameren’s subsidiaries are separate and distinct legal entities and have no obligation, contingent or otherwise, to pay any dividends or make any other distributions (except for payments required pursuant to the terms of intercompany borrowing arrangements and cash payments under the tax allocation agreement) to Ameren. Certain financing agreements, corporate organizational documents, and certain statutory and regulatory requirements may impose restrictions on the ability of Ameren Missouri, Ameren Illinois, and ATXI to transfer funds to Ameren in the form of cash dividends, loans, or advances.
Increasing costs associated with our defined benefit retirement and postretirement plans, health care plans, and other employee benefits could adversely affect our financial position and liquidity.
Ameren offers defined benefit pension and postretirement benefit plans covering substantially all of its union employees. Ameren offers defined benefit pension plans covering substantially all of its non-union employees and postretirement benefit plans covering non-union employees hired before October 2015. Assumptions related to future costs, returns on investments, interest rates, timing of employee retirements, and mortality, as well as other actuarial matters, have a significant impact on our customers' rates and our plan funding requirements. Ameren's total unfunded obligation under its pension and postretirement benefit plans was $774 million as of December 31, 2016. Ameren expects to fund its pension plans at a level equal to the greater of the pension cost or the legally required minimum contribution. Considering Ameren’s assumptions at December 31, 2016, its investment performance in 2016, and its pension funding policy, Ameren expects to make annual contributions of $50 million to $70 million in each of the next five years, with aggregate estimated contributions of $290 million. We expect Ameren Missouri’s and Ameren Illinois’ portions of the future funding requirements to be 35% and 55%, respectively. These amounts are estimates. They may change with actual investment performance, changes in interest rates, changes in our assumptions, changes in government regulations, and any voluntary contributions.
In addition to the costs of our retirement plans, the costs of providing health care benefits to our employees and retirees have increased in recent years. We believe that our employee benefit costs, including costs of health care plans for our employees and former employees, will continue to rise. The increasing costs and funding requirements associated with our defined benefit retirement plans, health care plans, and other employee benefits could increase our financing needs and otherwise adversely affect our financial position and liquidity.
Item 1B. UNRESOLVED STAFF COMMENTS
None.
Item 2. PROPERTIES
For information on our principal properties, see the energy center table below. See also Liquidity and Capital Resources and Regulatory Matters in Management’s Discussion and Analysis of Financial Condition and Results of Operations under Part II, Item 7, of this report for a discussion of planned additions, replacements or transfers. See also Note 5 – Long-term Debt and Equity Financings, and Note 15 – Commitments and Contingencies under Part II, Item 8, of this report.
The following table shows the anticipated capability of Ameren Missouri's energy centers at the time of Ameren Missouri's expected 2017 peak summer electrical demand:
| Primary Fuel Source | Energy Center | Location | Net Kilowatt Capability(a) | |
| Coal | Labadie | Franklin County, Missouri | 2,372,000 | |
| Rush Island | Jefferson County, Missouri | 1,178,000 | ||
| Sioux | St. Charles County, Missouri | 968,000 | ||
| Meramec(b) | St. Louis County, Missouri | 591,000 | ||
| Total coal | 5,109,000 | |||
| Nuclear | Callaway | Callaway County, Missouri | 1,193,000 | |
| Hydroelectric | Osage | Lakeside, Missouri | 240,000 | |
| Keokuk | Keokuk, Iowa | 144,000 | ||
| Total hydroelectric | 384,000 | |||
| Pumped-storage | Taum Sauk | Reynolds County, Missouri | 440,000 | |
| Oil (CTs) | Meramec | St. Louis County, Missouri | 54,000 | |
| Fairgrounds | Jefferson City, Missouri | 54,000 | ||
| Mexico | Mexico, Missouri | 54,000 | ||
| Moberly | Moberly, Missouri | 54,000 | ||
| Moreau | Jefferson City, Missouri | 54,000 | ||
| Total oil | 270,000 | |||
| Natural gas (CTs) | Audrain(c) | Audrain County, Missouri | 600,000 | |
| Venice(d) | Venice, Illinois | 488,000 | ||
| Goose Creek | Piatt County, Illinois | 432,000 | ||
| Pinckneyville | Pinckneyville, Illinois | 316,000 | ||
| Raccoon Creek | Clay County, Illinois | 300,000 | ||
| Meramec(b)(d)(e) | St. Louis County, Missouri | 283,000 | ||
| Kinmundy(d) | Kinmundy, Illinois | 208,000 | ||
| Peno Creek(c)(d) | Bowling Green, Missouri | 188,000 | ||
| Kirksville | Kirksville, Missouri | 13,000 | ||
| Total natural gas | 2,828,000 | |||
| Methane gas (CT) | Maryland Heights | Maryland Heights, Missouri | 8,000 | |
| Solar | O'Fallon | O'Fallon, Missouri | 3,000 | |
| Total Ameren and Ameren Missouri | 10,235,000 |
| (a) | Net kilowatt capability is the generating capacity available for dispatch from the energy center into the electric transmission grid. |
| (b) | All coal-fueled kilowatts and 238,000 natural-gas-fueled kilowatts are scheduled for retirement in 2022. |
| (c) | There are economic development lease arrangements applicable to these CTs. |
| (d) | These CTs have the capability to operate on either oil or natural gas (dual fuel). |
| (e) | Two of the three units included here are steam-powered units. |
The following table presents in-service electric and natural gas utility-related properties for Ameren Missouri and Ameren Illinois as of December 31, 2016:
| Ameren Missouri | Ameren Illinois | ||||
| Circuit miles of electric transmission lines(a) | 2,970 | 4,619 | |||
| Circuit miles of electric distribution lines | 33,346 | 45,897 | |||
| Percentage of circuit miles of electric distribution lines underground | 23 | % | 15 | % | |
| Miles of natural gas transmission and distribution mains | 3,357 | 18,364 | |||
| Underground natural gas storage fields | — | 12 | |||
| Total working capacity of underground natural gas storage fields in billion cubic feet | — | 24 |
| (a) | ATXI owns 147 miles of transmission lines not reflected in this table. |
Our other properties include office buildings, warehouses, garages, and repair shops.
With only a few exceptions, we have fee title to all principal energy centers and other units of property material to the operation of our businesses, and to the real property on which such facilities are located (subject to mortgage liens securing our outstanding first mortgage bonds and to certain permitted liens and judgment liens). The exceptions are as follows:
| • | A portion of Ameren Missouri’s Osage energy center reservoir, certain facilities at Ameren Missouri’s Sioux energy center, most of Ameren Missouri’s Peno Creek and Audrain CT energy centers, Ameren Missouri's Maryland Heights energy center, certain substations, and most transmission and distribution lines and natural gas mains are situated on lands occupied under leases, easements, franchises, licenses, or permits. The United States or the state of Missouri may own or may have paramount rights to certain lands lying in the bed of the Osage River or located |
between the inner and outer harbor lines of the Mississippi River on which certain of Ameren Missouri’s energy centers and other properties are located.
| • | The United States, the state of Illinois, the state of Iowa, or the city of Keokuk, Iowa, may own or may have paramount rights with respect to certain lands lying in the bed of the Mississippi River on which a portion of Ameren Missouri’s Keokuk energy center is located. |
Substantially all of the properties and plant of Ameren Missouri and Ameren Illinois are subject to the first liens of the indentures securing their mortgage bonds.
Ameren Missouri has conveyed most of its Peno Creek CT energy center to the city of Bowling Green, Missouri, and leased the energy center back from the city through 2022. Under the terms of this capital lease, Ameren Missouri is responsible for all operation and maintenance for the energy center. Ownership of the energy center will transfer to Ameren Missouri at the expiration of the lease, at which time the property, plant and equipment will become subject to the lien of any Ameren Missouri first mortgage bond indenture then in effect.
Ameren Missouri operates a CT energy center located in Audrain County, Missouri. Ameren Missouri has rights and obligations as lessee of the CT energy center under a long-term lease with Audrain County. The lease will expire in December 2023. Under the terms of this capital lease, Ameren Missouri is responsible for all operation and maintenance for the energy center. Ownership of the energy center will transfer to Ameren Missouri at the expiration of the lease, at which time the property, plant and equipment will become subject to the lien of any Ameren Missouri first mortgage bond indenture then in effect.
Item 3. LEGAL PROCEEDINGS
We are involved in legal and administrative proceedings before various courts and agencies with respect to matters that
arise in the ordinary course of business, some of which involve substantial amounts of money. We believe that the final disposition of these proceedings, except as otherwise disclosed in this report, will not have a material adverse effect on our results of operations, financial position, or liquidity. Risk of loss is mitigated, in some cases, by insurance or contractual or statutory indemnification. We believe that we have established appropriate reserves for potential losses. Material legal and administrative proceedings, which are discussed in Note 2 – Rate and Regulatory Matters, Note 10 – Callaway Energy Center and Note 15 – Commitments and Contingencies under Part II, Item 8, of this report and are incorporated herein by reference, include the following:
| • | the unanimous stipulation and agreement between Ameren Missouri, the MoPSC staff, the MoOPC, and all intervenors, which is subject to MoPSC approval, that settles the July 2016 electric rate case; |
| • | ATXI’s lawsuits filed in October 2016 in the circuit courts of each of Adair, Knox, Marion, Schuyler, and Shelby counties in Missouri to obtain assents for road crossings in the counties where the Mark Twain transmission project will be constructed; |
| • | the February 2015 complaint case filed with the FERC seeking a reduction in the allowed base return on common equity under the MISO tariff; |
| • | litigation against Ameren Missouri related to the EPA Clean Air Act; |
| • | remediation matters associated with former MGP and waste disposal sites of the Ameren Companies; and |
| • | the class action lawsuit against Ameren Missouri relating to municipal taxes. |
Item 4. MINE SAFETY DISCLOSURES
Not applicable.
EXECUTIVE OFFICERS OF THE REGISTRANTS (ITEM 401(b) OF REGULATION S-K):
The executive officers of the Ameren Companies, including major subsidiaries, are listed below, along with their ages as of December 31, 2016, all positions and offices held with the Ameren Companies as of February 15, 2017, tenure as officer, and business background for at least the last five years. Some executive officers hold multiple positions within the Ameren Companies; their titles are given in the description of their business experience.
AMEREN CORPORATION:
| Name | Age | Positions and Offices Held | ||
| Warner L. Baxter | 55 | Chairman, President and Chief Executive Officer, and Director | ||
| Baxter joined Ameren Missouri in 1995. Baxter was elected to the positions of executive vice president and chief financial officer of Ameren, Ameren Missouri, Ameren Illinois, and Ameren Services in 2003. He was elected chairman, president, chief executive officer, and chief financial officer of Ameren Services in 2007. In 2009, Baxter was elected chairman, president and chief executive officer of Ameren Missouri. In February 2014, Baxter was elected president of Ameren and was appointed to the Ameren board. In April 2014, he relinquished his positions at Ameren Missouri and was elected chief executive officer of Ameren. In July 2014, Baxter was elected chairman of the Ameren board. | ||||
| Martin J. Lyons, Jr. | 50 | Executive Vice President and Chief Financial Officer | ||
| Lyons joined Ameren Services in 2001. In 2008, Lyons was elected senior vice president and chief accounting officer of the Ameren Companies. In 2009, Lyons was also elected chief financial officer of the Ameren Companies. In 2013, Lyons was elected executive vice president and chief financial officer of the Ameren Companies, and relinquished his duties as chief accounting officer. In 2016, Lyons was elected chairman and president of Ameren Services. | ||||
| Gregory L. Nelson | 59 | Senior Vice President, General Counsel, and Secretary | ||
| Nelson joined Ameren Missouri in 1995. Nelson was elected vice president and tax counsel of Ameren Services in 1999 and vice president of Ameren Missouri and Ameren Illinois in 2003. In 2010, Nelson was elected vice president, tax and deputy general counsel of Ameren Services. He remained vice president of Ameren Missouri and Ameren Illinois. In 2011, Nelson was elected senior vice president, general counsel and secretary of the Ameren Companies. | ||||
| Bruce A. Steinke | 55 | Senior Vice President, Finance, and Chief Accounting Officer | ||
| Steinke joined Ameren Services in 2002. In 2008, he was elected vice president and controller of Ameren, Ameren Illinois, and Ameren Services. In 2009, Steinke relinquished his positions at Ameren Illinois. In 2013, Steinke was elected senior vice president, finance, and chief accounting officer of the Ameren Companies. |
SUBSIDIARIES:
| Name | Age | Positions and Offices Held | ||
| Mark C. Birk | 52 | Senior Vice President, Customer Operations (Ameren Missouri) | ||
| Birk joined Ameren Missouri in 1986. In 2005, Birk was elected vice president, power operations, of Ameren Missouri. In 2012, Birk was elected senior vice president, corporate planning, of Ameren Services. In 2014, he was also elected senior vice president, oversight, of Ameren Services, and in 2015, he was elected senior vice president, corporate safety, planning and operations oversight. In 2017, Birk was elected senior vice president, customer operations, at Ameren Missouri and relinquished his positions at Ameren Services. | ||||
| Maureen A. Borkowski | 59 | Chairman and President (ATXI) | ||
| Borkowski joined Ameren Missouri in 1981. She left the company in 2000 and rejoined Ameren in 2005 as vice president, transmission, of Ameren Services. In 2011, Borkowski was elected chairman and president of ATXI. In 2011, she was also elected senior vice president, transmission, of Ameren Services. | ||||
| Fadi M. Diya | 54 | Senior Vice President and Chief Nuclear Officer (Ameren Missouri) | ||
| Diya joined Ameren Missouri in 2005. In 2008, Diya was elected vice president, nuclear operations, of Ameren Missouri. In January 2014, Diya was elected senior vice president and chief nuclear officer of Ameren Missouri. | ||||
| Mary P. Heger | 60 | Senior Vice President and Chief Information Officer (Ameren Services) | ||
| Heger joined Ameren Missouri in 1976. In 2009, Heger was elected vice president, information technology, of Ameren Services, and in 2012, she was also elected chief information officer of Ameren Services. In 2015, Heger was elected senior vice president and chief information officer of Ameren Services. | ||||
| Mark C. Lindgren | 49 | Senior Vice President, Corporate Communications and Chief Human Resources Officer (Ameren Services) | ||
| Lindgren joined Ameren Services in 1998. In 2009, Lindgren was elected vice president, human resources, of Ameren Services, and in 2012, he was also elected chief human resources officer of Ameren Services. In 2015, Lindgren was elected senior vice president, corporate communications, and chief human resources officer of Ameren Services. | ||||
| Richard J. Mark | 61 | Chairman and President (Ameren Illinois) | ||
| Mark joined Ameren Services in 2002. He was elected senior vice president, customer operations, of Ameren Missouri in 2005. In 2012, Mark relinquished his position at Ameren Missouri and was elected chairman and president of Ameren Illinois. | ||||
| Michael L. Moehn | 47 | Chairman and President (Ameren Missouri) | ||
| Moehn joined Ameren Services in 2000. In 2008, he was elected senior vice president, corporate planning and business risk management, of Ameren Services. In 2012, Moehn was elected senior vice president, customer operations, of Ameren Missouri. In April 2014, Moehn was elected chairman and president of Ameren Missouri. |
Officers are generally elected or appointed annually by the respective board of directors of each company, following the election of board members at the annual meetings of shareholders. No special arrangement or understanding exists between any of the above-named executive officers and the Ameren Companies nor, to our knowledge, with any other person or persons pursuant to which any executive officer was selected as an officer. There are no family relationships among the executive officers or between any executive officers and any directors of the Ameren Companies. All of the above-named executive officers have been employed by an Ameren company for more than five years in executive or management positions.
PART II
Item 5. MARKET FOR REGISTRANTS' COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASE OF EQUITY SECURITIES
Ameren’s common stock is listed on the NYSE (ticker symbol: AEE). Ameren common shareholders of record totaled 49,986 on January 31, 2017. The following table presents the price ranges, closing prices, and dividends declared per Ameren common share for each quarter during 2016 and 2015:
| High | Low | Close | Dividends Declared | ||||||||||||
| 2016 Quarter Ended: | |||||||||||||||
| March 31 | $ | 50.16 | $ | 41.50 | $ | 50.10 | $ | 0.425 | |||||||
| June 30 | 53.59 | 46.29 | 53.58 | 0.425 | |||||||||||
| September 30 | 54.08 | 47.79 | 49.18 | 0.425 | |||||||||||
| December 31 | 52.88 | 46.84 | 52.46 | 0.44 | |||||||||||
| 2015 Quarter Ended: | |||||||||||||||
| March 31 | $ | 46.81 | $ | 40.51 | $ | 42.20 | $ | 0.41 | |||||||
| June 30 | 43.00 | 37.26 | 37.68 | 0.41 | |||||||||||
| September 30 | 43.85 | 37.55 | 42.27 | 0.41 | |||||||||||
| December 31 | 44.71 | 41.33 | 43.23 | 0.425 |
There is no trading market for the common stock of Ameren Missouri and Ameren Illinois. Ameren holds all outstanding common stock of Ameren Missouri and Ameren Illinois.
The following table sets forth the quarterly common stock dividend payments made by Ameren and its registrant subsidiaries during 2016 and 2015:
| 2016 | 2015 | |||||||||||||||||||||||||||||||
| (In millions) | Quarter Ended | Quarter Ended | ||||||||||||||||||||||||||||||
| Registrant | December 31 | September 30 | June 30 | March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||||||||||
| Ameren Missouri | $ | 70 | $ | 75 | $ | 70 | $ | 140 | $ | 85 | $ | 75 | $ | 100 | $ | 315 | ||||||||||||||||
| Ameren Illinois | 15 | 35 | 30 | 30 | — | — | — | — | ||||||||||||||||||||||||
| Ameren | 107 | 103 | 103 | 103 | 104 | 99 | 100 | 99 |
On February 10, 2017, the board of directors of Ameren declared a quarterly dividend on Ameren’s common stock of 44 cents per share. The common share dividend is payable March 31, 2017, to shareholders of record on March 14, 2017.
For a discussion of restrictions on the Ameren Companies’ payment of dividends, see Liquidity and Capital Resources in Management’s Discussion and Analysis of Financial Condition and Results of Operations under Part II, Item 7, of this report.
Purchases of Equity Securities
The following table presents Ameren Corporation’s purchases of equity securities reportable under Item 703 of Regulation S-K:
| Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | ||||||||
| October 1 – October 31, 2016 | — | $ | — | — | — | |||||||
| November 1 – November 30, 2016 (a) | 5,152 | 49.11 | — | — | ||||||||
| December 1 – December 31, 2016 | — | — | — | — | ||||||||
| Total | 5,152 | $ | 49.11 | — | — |
| (a) | Shares were purchased in open-market transactions pursuant to the 2014 Incentive Plan in satisfaction of Ameren’s obligations for Ameren board of directors’ compensation awards. Ameren does not have any publicly announced equity securities repurchase plans or programs. |
Ameren Missouri and Ameren Illinois did not purchase any equity securities reportable under Item 703 of Regulation S-K during the period from October 1, 2016, to December 31, 2016.
Performance Graph
The following graph shows Ameren’s cumulative total shareholder return during the five years ended December 31, 2016. The graph also shows the cumulative total returns of the S&P 500 Index and the Edison Electric Institute Index (EEI Index), which comprises most investor-owned electric utilities in the United States. The comparison assumes that $100 was invested on December 31, 2011, in Ameren common stock and in each of the indices shown, and it assumes that all of the dividends were reinvested.
| December 31, | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |||||||||||||||||
| Ameren (AEE) | $ | 100.00 | $ | 97.47 | $ | 120.19 | $ | 159.53 | $ | 155.75 | $ | 195.71 | |||||||||||
| S&P 500 Index | 100.00 | 116.00 | 153.57 | 174.60 | 177.01 | 198.18 | |||||||||||||||||
| EEI Index | 100.00 | 102.09 | 115.37 | 148.73 | 142.93 | 167.85 |
Ameren management cautions that the stock price performance shown above should not be considered indicative of potential future stock price performance.
Item 6. SELECTED FINANCIAL DATA
| For the years ended December 31, (In millions, except per share amounts) | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
| Ameren(a): | |||||||||||||||||||
| Operating revenues | $ | 6,076 | $ | 6,098 | $ | 6,053 | $ | 5,838 | $ | 5,781 | |||||||||
| Operating income(b) | 1,381 | 1,259 | 1,254 | 1,184 | 1,188 | ||||||||||||||
| Income from continuing operations | 659 | 585 | 593 | 518 | 522 | ||||||||||||||
| Income (loss) from discontinued operations, net of taxes(c) | — | 51 | (1 | ) | (223 | ) | (1,496 | ) | |||||||||||
| Net income (loss) attributable to Ameren common shareholders | 653 | 630 | 586 | 289 | (974 | ) | |||||||||||||
| Common stock dividends | 416 | 402 | 390 | 388 | 382 | ||||||||||||||
| Continuing operations earnings per share – basic | 2.69 | 2.39 | 2.42 | 2.11 | 2.13 | ||||||||||||||
| Continuing operations earnings per share – diluted | 2.68 | 2.38 | 2.40 | 2.10 | 2.13 | ||||||||||||||
| Common stock dividends per share | 1.715 | 1.655 | 1.61 | 1.60 | 1.60 | ||||||||||||||
| As of December 31: | |||||||||||||||||||
| Total assets(d) | $ | 24,699 | $ | 23,640 | $ | 22,289 | $ | 20,907 | $ | 22,022 | |||||||||
| Long-term debt, excluding current maturities | 6,595 | 6,880 | 6,085 | 5,475 | 5,765 | ||||||||||||||
| Total Ameren Corporation shareholders’ equity | 7,103 | 6,946 | 6,713 | 6,544 | 6,616 | ||||||||||||||
| Ameren Missouri: | |||||||||||||||||||
| Operating revenues | $ | 3,523 | $ | 3,609 | $ | 3,553 | $ | 3,541 | $ | 3,272 | |||||||||
| Operating income(b) | 745 | 742 | 785 | 803 | 845 | ||||||||||||||
| Net income available to common shareholder | 357 | 352 | 390 | 395 | 416 | ||||||||||||||
| Dividends to parent | 355 | 575 | 340 | 460 | 400 | ||||||||||||||
| As of December 31: | |||||||||||||||||||
| Total assets | $ | 14,035 | $ | 13,851 | $ | 13,474 | $ | 12,867 | $ | 12,998 | |||||||||
| Long-term debt, excluding current maturities | 3,563 | 3,844 | 3,861 | 3,631 | 3,782 | ||||||||||||||
| Total shareholders' equity | 4,090 | 4,082 | 4,052 | 3,993 | 4,054 | ||||||||||||||
| Ameren Illinois: | |||||||||||||||||||
| Operating revenues | $ | 2,490 | $ | 2,466 | $ | 2,498 | $ | 2,311 | $ | 2,525 | |||||||||
| Operating income | 544 | 466 | 450 | 415 | 377 | ||||||||||||||
| Net income available to common shareholder | 252 | 214 | 201 | 160 | 141 | ||||||||||||||
| Dividends to parent | 110 | — | — | 110 | 189 | ||||||||||||||
| As of December 31: | |||||||||||||||||||
| Total assets | $ | 9,474 | $ | 8,903 | $ | 8,204 | $ | 7,397 | $ | 7,186 | |||||||||
| Long-term debt, excluding current maturities | 2,338 | 2,342 | 2,224 | 1,844 | 1,566 | ||||||||||||||
| Total shareholders' equity | 3,034 | 2,897 | 2,661 | 2,448 | 2,401 |
| (a) | Includes amounts for Ameren registrant and nonregistrant subsidiaries and intercompany eliminations. |
| (b) | Includes a $69 million provision recorded in 2015 for all of the previously capitalized COL costs relating to the second nuclear unit at its existing Callaway energy center. |
| (c) | See Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of this report for additional information. |
| (d) | Includes total assets from discontinued operations of $15 million, $14 million, $15 million, $165 million, and $1,611 million at December 31, 2016, 2015, 2014, 2013, and 2012, respectively. |
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Ameren, headquartered in St. Louis, Missouri, is a public utility holding company under PUHCA 2005. Ameren’s primary assets are its equity interests in its subsidiaries, including Ameren Missouri, Ameren Illinois, and ATXI. Ameren’s subsidiaries are separate, independent legal entities with separate businesses, assets, and liabilities. Dividends on Ameren’s common stock and the payment of expenses by Ameren depend on distributions made to it by its subsidiaries.
Below is a summary description of Ameren's principal subsidiaries. Ameren also has various other subsidiaries that conduct other activities, such as the provision of shared services. A more detailed description can be found in Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of this report.
| • | Ameren Missouri operates a rate-regulated electric generation, transmission, and distribution business and a rate-regulated natural gas distribution business in Missouri. |
| • | Ameren Illinois operates rate-regulated electric distribution, electric transmission and natural gas distribution businesses in Illinois. |
| • | ATXI operates a FERC rate-regulated electric transmission business. ATXI is developing MISO-approved electric transmission projects, including the Illinois Rivers, Spoon River, and Mark Twain projects. ATXI is also evaluating competitive electric transmission investment opportunities outside of MISO as they arise. |
Unless otherwise stated, the following sections of Management's Discussion and Analysis of Financial Condition and Results of Operations exclude discontinued operations for all periods presented. See Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of this report for additional information regarding that presentation.
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. All references in this report to earnings per share are based on average diluted common shares outstanding for the relevant period.
OVERVIEW
Ameren’s strategic plan includes investing in 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 and shareholders. In 2016, Ameren successfully executed its strategy. Ameren continued to allocate significant amounts of capital to those businesses that are supported by constructive regulatory frameworks. In 2016, Ameren invested $1.3 billion of capital expenditures in its FERC rate-regulated electric transmission and Illinois electric and natural gas distribution businesses.
In 2016, Ameren continued to work to enhance its regulatory frameworks and advocate for responsible energy and economic policies and to create and capitalize on opportunities for investment for the benefit of its customers and shareholders. Ameren Illinois successfully advocated for the FEJA, which improved the constructive regulatory framework for Ameren Illinois' electric distribution business. The FEJA revised certain portions of the IEIMA, including extending the IEIMA formula ratemaking process through 2022. Also, beginning in 2017, the FEJA decouples electric distribution revenues established in a rate proceeding from actual sales volumes by providing that any revenue changes driven by actual electric distribution sales volumes differing from sales volumes reflected in that year's rates will be collected from or refunded to customers within two years. This portion of the law extends beyond the end of the IEIMA in 2022. Further, beginning as early as June 2017, the FEJA will allow Ameren Illinois to capitalize as a regulatory asset and earn a return on its electric energy efficiency investments.
In July 2016, Ameren Missouri filed a request with the MoPSC seeking approval to increase its annual revenues for electric service. Relating to that request, in February 2017, Ameren Missouri, the MoPSC staff, the MoOPC, and all intervenors filed a unanimous stipulation and agreement with the MoPSC. The stipulation and agreement, which is subject to MoPSC approval, would result in a $3.4 billion revenue requirement, which is a $92 million increase in Ameren Missouri’s annual revenue requirement for electric service compared to its prior revenue requirement established in the MoPSC's April 2015 electric rate order. The stipulation and agreement did not specify the common equity percentage, the rate base, or the allowed return on common equity. The new revenue requirement reflects the current actual sales volumes of the New Madrid Smelter, whose operations remain suspended, as well as other agreed upon sales volumes. Excluding cost reductions associated with reduced sales volumes, the base level of net energy costs under the stipulation and agreement would decrease by $54 million from the base level established in the MoPSC's April 2015 electric rate order. Changes in amortizations and the base level of expenses for the other regulatory tracking mechanisms, including extending the amortization period of certain regulatory assets, would reduce expenses by $26 million from the base levels established in the MoPSC's April 2015 electric rate order. The stipulation and agreement contemplates that new rates will become effective on or before March 20, 2017.
Related to ATXI's and Ameren Illinois' FERC rate-regulated transmission businesses, in September 2016, the FERC issued a final order in the November 2013 complaint case which lowered the total allowed return on common equity to 10.82%. The new
allowed return on common equity has been reflected in rates prospectively from the September 2016 effective date of the order. The FERC is expected to issue a final order in the February 2015 complaint case in the second quarter of 2017. That final order will determine the allowed return on common equity for the 15-month period ended May 2016. That final order will also establish the allowed return on common equity that will apply prospectively from its expected second quarter 2017 effective date, replacing the current 10.82% total return on common equity, which became effective in September 2016.
In October 2016, Ameren’s board of directors increased the quarterly common stock dividend to 44 cents per share, resulting in an annualized equivalent dividend rate of $1.76 per share.
Earnings
Net income attributable to Ameren common shareholders from continuing operations was $653 million, or $2.68 per diluted share, for 2016, and $579 million, or $2.38 per diluted share, for 2015. These earnings were favorably affected in 2016, compared with 2015, by increased Ameren Transmission and Ameren Illinois Electric Distribution earnings, reflecting Ameren’s strategy to allocate incremental capital to those businesses, increased demand due to warmer summer temperatures, higher natural gas distribution rates at Ameren Illinois pursuant to a December 2015 order, and decreased other operations and maintenance expenses. Net income was also favorably affected in 2016, compared with 2015, by an income tax benefit recorded in 2016 at Ameren (parent) pursuant to the adoption of new accounting guidance related to share-based compensation, as well as the absence of a provision recognized in 2015 as
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Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market risk is the risk of changes in value of a physical asset or a financial instrument, derivative or nonderivative, caused by fluctuations in market variables such as interest rates, commodity prices, and equity security prices. A derivative is a contract whose value is dependent on, or derived from, the value of some underlying asset or index. The following discussion of our risk management activities includes forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those projected in the forward-looking statements. We handle market risks in accordance with established policies, which may include entering into various derivative transactions. In the normal course of business, we also face risks that are either nonfinancial or nonquantifiable. Such risks, principally business, legal, and operational risks, are not part of the following discussion.
Our risk management objectives are to optimize our physical generating assets and to pursue market opportunities within prudent risk parameters. Our risk management policies are set by a risk management steering committee, which is composed of senior-level Ameren officers, with Ameren board of directors oversight.
Interest Rate Risk
We are exposed to market risk through changes in interest rates associated with:
| • | long-term and short-term variable-rate debt; |
| • | fixed-rate debt; |
| • | United States Treasury bonds; and |
| • | defined pension and postretirement benefit plans. |
We manage our interest rate exposure by controlling the amount of debt instruments within our total capitalization portfolio and by monitoring the effects of market changes on interest rates. For defined pension and postretirement benefit plans, we control the duration and the portfolio mix of our plan assets.
The following table presents the estimated increase in our annual interest expense and decrease in net income if interest rates were to increase by one hundred basis points on variable-rate debt outstanding at December 31, 2016:
| Interest Expense | Net Income(a) | |||||
| Ameren | $ | 8 | $ | (5 | ) | |
| Ameren Missouri | 2 | (1 | ) | |||
| Ameren Illinois | 1 | (b) |
| (a) | Calculations are based on an estimated tax rate of 37%, 38%, and 38% for Ameren, Ameren Missouri, and Ameren Illinois, respectively. |
| (b) | Less than $1 million. |
Ameren Illinois’ annual return on equity under the formula ratemaking process for its electric distribution business is directly correlated to the average monthly yields of 30-year United States Treasury bonds plus 580 basis points for a calendar year. The yields on such bonds are outside of Ameren Illinois’ control. A 50
basis point change in the average monthly yields of the 30-year United States Treasury bonds would result in an estimated $7 million change in Ameren's and Ameren Illinois' net income, based on its 2017 projected rate base.
Credit Risk
Credit risk represents the loss that would be recognized if counterparties should fail to perform as contracted. Exchange-traded contracts are supported by the financial and credit quality of the clearing members of the respective exchanges and carry only a nominal credit risk. In all other transactions, we are exposed to credit risk in the event of nonperformance by the counterparties to the transaction. See Note 7 – Derivative Financial Instruments under Part II, Item 8, of this report for information on the potential loss on counterparty exposure as of December 31, 2016.
Our revenues are primarily derived from sales or delivery of electricity and natural gas to customers in Missouri and Illinois. Our physical and financial instruments are subject to credit risk consisting of trade accounts receivables and executory contracts with market risk exposures. The risk associated with trade receivables is mitigated by the large number of customers in a broad range of industry groups who make up our customer base. At December 31, 2016, no nonaffiliated customer represented more than 10% of our accounts receivable. Additionally, Ameren Illinois faces risks associated with the purchase of receivables. The Illinois Public Utilities Act requires Ameren Illinois to establish electric utility consolidated billing and purchase of receivables services. At the option of an alternative retail electric supplier, Ameren Illinois may be required to purchase the supplier's receivables relating to Ameren Illinois' distribution customers who elected to receive power supply from the alternative retail electric supplier. When that option is selected, Ameren Illinois produces consolidated bills for the applicable retail customers reflecting charges for electric distribution and purchased receivables. As of December 31, 2016, Ameren Illinois' balance of purchased accounts receivable associated with the utility consolidated billing and purchase of receivables services was $31 million. The risk associated with Ameren Illinois' electric and natural gas trade receivables is also mitigated by a rate adjustment mechanism that allows Ameren Illinois to recover the difference between its actual net bad debt write-offs under GAAP and the amount of net bad debt write-offs included in its base rates. Ameren Missouri and Ameren Illinois continue to monitor the impact of increasing rates on customer collections. Ameren Missouri and Ameren Illinois make adjustments to their respective allowance for doubtful accounts as deemed necessary to ensure that such allowances are adequate to cover estimated uncollectible customer account balances.
Equity Price Risk
Our costs for providing defined benefit retirement and postretirement benefit plans are dependent upon a number of factors, including the rate of return on plan assets. Ameren manages plan assets in accordance with the “prudent investor” guidelines contained in ERISA. Ameren’s goal is to ensure that
sufficient funds are available to provide benefits at the time they are payable, while also maximizing total return on plan assets and minimizing expense volatility consistent with its tolerance for risk. Ameren delegates investment management to specialists. Where appropriate, Ameren provides the investment manager with guidelines that specify allowable and prohibited investment types. Ameren regularly monitors manager performance and compliance with investment guidelines.
The expected return on plan assets assumption is based on historical and projected rates of return for current and planned asset classes in the investment portfolio. Projected rates of return for each asset class are estimated after an analysis of historical experience, future expectations, and the volatility of the various asset classes. After considering the target asset allocation for each asset class, we adjust the overall expected rate of return for the portfolio for historical and expected experience of active portfolio management results compared with benchmark returns, and for the effect of expenses paid from plan assets. Contributions to the plans and future costs could increase materially if we do not achieve pension and postretirement asset portfolio investment returns equal to or in excess of our 2017 assumed return on plan assets of 7.00%.
Ameren Missouri also maintains a trust fund, as required by the NRC and Missouri law, to fund certain costs of nuclear plant decommissioning. As of December 31, 2016, this fund was invested in domestic equity securities (67%) and debt securities (32%). By maintaining a portfolio that includes long-term equity investments, Ameren Missouri seeks to maximize the returns to be used to fund nuclear decommissioning costs within acceptable parameters of risk. However, the equity securities included in the portfolio are exposed to price fluctuations in equity markets. The debt securities are exposed to changes in interest rates. Ameren Missouri actively monitors the portfolio by benchmarking the performance of its investments against certain indices and by maintaining and periodically reviewing established target allocation percentages of the trust assets to various investment options. Ameren Missouri’s exposure to equity price market risk is in large part mitigated because Ameren Missouri is currently allowed to recover its decommissioning costs, which would include unfavorable investment results, through electric rates.
Additionally, Ameren has company-owned life insurance contracts. These life insurance contracts include equity and debt investments that are exposed to price fluctuations in equity markets and to changes in interest rates.
Commodity Price Risk
With regard to Ameren Missouri’s and Ameren Illinois’ electric and natural gas distribution businesses, exposure to changing market prices is in large part mitigated by the fact that there are cost recovery mechanisms in place. These cost recovery mechanisms allow Ameren Missouri and Ameren Illinois to pass on to retail customers prudently incurred costs for fuel, purchased power, and natural gas supply.
Ameren Missouri’s and Ameren Illinois’ strategy is designed to reduce the effect of market fluctuations for their customers.
The effects of price volatility cannot be eliminated. However, procurement and sales strategies involve risk management techniques and instruments, as well as the management of physical assets.
Ameren Missouri has a FAC, a fuel and purchased power cost recovery mechanism that allows it to recover or refund through customer rates 95% of changes in net energy costs greater or less than the amount set in base rates without a traditional rate proceeding, subject to MoPSC prudence reviews. Ameren Missouri remains exposed to the remaining 5% of such changes.
Ameren Illinois has a cost recovery mechanism for power purchased on behalf of its customers. Ameren Illinois is required to serve as the provider of last resort for electric customers in its service territory who have not chosen an alternative retail electric supplier. Ameren Illinois does not generate earnings based on the resale of power but rather on the delivery of energy. Ameren Illinois purchases power primarily through MISO, with additional procurement events administered by the IPA. The IPA has proposed and the ICC has approved multiple procurement events covering portions of years through 2019. In 2016, acting in its role as provider of last resort, Ameren Illinois supplied power for 23% of its kilowatthour sales to its electric customers. Ameren Illinois expects full recovery of its purchased power costs.
Ameren Missouri and Ameren Illinois have PGA clauses that permit costs incurred for natural gas to be recovered directly from utility customers without a traditional rate proceeding, subject to prudence review.
With regard to our exposure for commodity price risk for construction and maintenance activities, Ameren is exposed to changes in market prices for metal commodities and to labor availability.
See Transmission and Supply of Electric Power under Part I, Item 1, of this report for the percentages of our historical needs satisfied by coal, nuclear, natural gas, oil, and renewables. Also see Note 15 – Commitments and Contingencies under Part II, Item 8, of this report for additional information.
Commodity Supplier Risk
The use of ultra-low-sulfur coal is part of Ameren Missouri's environmental compliance strategy. Ameren Missouri has agreements to purchase ultra-low-sulfur coal through 2020 to comply with environmental regulations. The coal contracts are with a single supplier through 2017, and with multiple suppliers beyond 2017. Disruptions to the deliveries of ultra-low-sulfur coal from a supplier could compromise Ameren Missouri's ability to operate in compliance with emission standards. The suppliers of ultra-low-sulfur coal are limited, and the construction of pollution control equipment requires significant lead time. If Ameren Missouri were to experience a temporary disruption of ultra-low-sulfur coal deliveries that caused it to exhaust its existing inventory, and if other sources of ultra-low-sulfur coal were not available, Ameren Missouri would use its existing emission allowances, purchase emission allowances to achieve
compliance with environmental regulations, or purchase power necessary to meet demand.
The Callaway energy center uses nuclear fuel assemblies of a design fabricated by only a single supplier. That supplier is currently the only NRC-licensed supplier able to provide fuel assemblies to the Callaway energy center. If Ameren Missouri
should decide to change fuel suppliers or to change the type of fuel assembly design that is currently licensed for use at the Callaway energy center, up to three years of analysis and licensing effort would be required to fully implement such a change.
Fair Value of Contracts
We use derivatives principally to manage the risk of changes in market prices for natural gas, power, and uranium, as well as the risk of changes in rail transportation surcharges through fuel oil hedges. The following table presents the favorable (unfavorable) changes in the fair value of all derivative contracts marked-to-market during the year ended December 31, 2016. We use various methods to determine the fair value of our contracts. In accordance with authoritative accounting guidance for fair value hierarchy levels, the sources we used to determine the fair value of these contracts were active quotes (Level 1), inputs corroborated by market data (Level 2), and other modeling and valuation methods that are not corroborated by market data (Level 3). See Note 8 – Fair Value Measurements under Part II, Item 8, of this report for additional information regarding the methods used to determine the fair value of these contracts.
| Ameren Missouri | Ameren Illinois | Ameren | |||||||||
| Fair value of contracts at beginning of year, net | $ | (27 | ) | $ | (219 | ) | $ | (246 | ) | ||
| Contracts realized or otherwise settled during the period | 13 | 44 | 57 | ||||||||
| Fair value of new contracts entered into during the period | 9 | 4 | 13 | ||||||||
| Other changes in fair value | 1 | (9 | ) | (8 | ) | ||||||
| Fair value of contracts outstanding at end of year, net | $ | (4 | ) | $ | (180 | ) | $ | (184 | ) |
The following table presents maturities of derivative contracts as of December 31, 2016, based on the hierarchy levels used to determine the fair value of the contracts:
| Sources of Fair Value | Maturity Less Than 1 Year | Maturity 1 – 3 Years | Maturity 3 – 5 Years | Maturity in Excess of 5 Years | Total Fair Value | ||||||||||||||
| Ameren Missouri: | |||||||||||||||||||
| Level 1 | $ | (4 | ) | $ | 1 | $ | — | $ | — | $ | (3 | ) | |||||||
| Level 2(a) | (1 | ) | (5 | ) | — | — | (6 | ) | |||||||||||
| Level 3(b) | 8 | (3 | ) | — | — | 5 | |||||||||||||
| Total | $ | 3 | $ | (7 | ) | $ | — | $ | — | $ | (4 | ) | |||||||
| Ameren Illinois: | |||||||||||||||||||
| Level 1 | $ | 2 | $ | — | $ | — | $ | — | $ | 2 | |||||||||
| Level 2(a) | 7 | (3 | ) | — | — | 4 | |||||||||||||
| Level 3(b) | (13 | ) | (26 | ) | (28 | ) | (119 | ) | (186 | ) | |||||||||
| Total | $ | (4 | ) | $ | (29 | ) | $ | (28 | ) | $ | (119 | ) | $ | (180 | ) | ||||
| Ameren: | |||||||||||||||||||
| Level 1 | $ | (2 | ) | $ | 1 | $ | — | $ | — | $ | (1 | ) | |||||||
| Level 2(a) | 6 | (8 | ) | — | — | (2 | ) | ||||||||||||
| Level 3(b) | (5 | ) | (29 | ) | (28 | ) | (119 | ) | (181 | ) | |||||||||
| Total | $ | (1 | ) | $ | (36 | ) | $ | (28 | ) | $ | (119 | ) | $ | (184 | ) |
| (a) | Principally fixed-price vs. floating over-the-counter power swaps, power forwards, and fixed-price vs. floating over-the-counter natural gas swaps. |
| (b) | Principally power forward contract values based on information from external sources, historical results, and our estimates. Level 3 also includes option contract values based on an option valuation model. |
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders
of Ameren Corporation:
In our opinion, the consolidated financial statements listed in the index appearing under Item 15(a)(1) present fairly, in all material respects, the financial position of Ameren Corporation and its subsidiaries (the "Company") at December 31, 2016 and 2015, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2016, in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedules listed in the index appearing under Item 15(a)(2) present fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company’s management is responsible for these financial statements and financial statement schedules, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on these financial statements, on the financial statement schedules, and on the Company’s internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
St. Louis, Missouri
February 28, 2017
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders
of Union Electric Company:
In our opinion, the financial statements listed in the index appearing under Item 15(a)(1) present fairly, in all material respects, the financial position of Union Electric Company (the "Company") at December 31, 2016 and 2015, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2016, in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedule listed in the index appearing under Item 15(a)(2) presents fairly, in all material respects, the information set forth therein when read in conjunction with the related financial statements. These financial statements and financial statement schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and financial statement schedule based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
St. Louis, Missouri
February 28, 2017
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders
of Ameren Illinois Company:
In our opinion, the financial statements listed in the index appearing under Item 15(a)(1) present fairly, in all material respects, the financial position of Ameren Illinois Company (the "Company") at December 31, 2016 and 2015, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2016, in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedule listed in the index appearing under Item 15(a)(2) presents fairly, in all material respects, the information set forth therein when read in conjunction with the related financial statements. These financial statements and financial statement schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and financial statement schedule based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable
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Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
Item 9A. CONTROLS AND PROCEDURES
| (a) | Evaluation of Disclosure Controls and Procedures |
As of December 31, 2016, evaluations were performed under the supervision and with the participation of management, including the principal executive officer and the principal financial officer of each of the Ameren Companies, of the effectiveness of the design and operation of such registrant’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act). Based on those evaluations, as of December 31, 2016, the principal executive officer and the principal financial officer of each of the Ameren Companies concluded that such disclosure controls and procedures are effective to provide assurance that information required to be disclosed in such registrant’s reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to its management, including its principal executive and principal financial officers, to allow timely decisions regarding required disclosure.
| (b) | Management’s Report on Internal Control over Financial Reporting |
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision of and with the participation of management, including the principal executive officer and the principal financial officer, an evaluation was conducted of the effectiveness of each of the Ameren Companies’ internal control over financial reporting based on the framework in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). After making that evaluation, management concluded that each of the Ameren Companies’ internal control over financial reporting was effective as of December 31, 2016. The effectiveness of Ameren’s internal control over financial reporting as of December 31, 2016, has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in its report herein under Part II, Item 8. This annual report does not include an attestation report of Ameren Missouri’s or Ameren Illinois’ (the Subsidiary Registrants) independent registered public accounting firm regarding internal control over financial reporting. Management’s report for each of the Subsidiary Registrants is not subject to attestation by an independent registered public accounting firm.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness into future periods are subject to the risk that internal controls might become inadequate because of changes in conditions, and to the risk that the degree of compliance with the policies or procedures might deteriorate.
| (c) | Change in Internal Control |
There has been no change in the Ameren Companies’ internal control over financial reporting during their most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, their internal control over financial reporting.
Item 9B. OTHER INFORMATION
The Ameren Companies have no information reportable under this item that was required to be disclosed in a report on SEC Form 8-K during the fourth quarter of 2016 that has not previously been reported on an SEC Form 8-K.
PART III
Item 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
Information required by Items 401, 405, 406 and 407(c)(3),(d)(4) and (d)(5) of SEC Regulation S-K for Ameren will be included in its definitive proxy statement for its 2017 annual meeting of shareholders filed pursuant to SEC Regulation 14A; it is incorporated herein by reference. Information required by these SEC Regulation S-K items for Ameren Missouri and Ameren Illinois will be included in each company’s definitive information statement for its 2017 annual meeting of shareholders filed pursuant to SEC Regulation 14C; it is incorporated herein by reference. Specifically, reference is made to the following sections of Ameren’s definitive proxy statement and to each of Ameren Missouri’s and Ameren Illinois’ definitive information statements: “Information Concerning Nominees to the Board of Directors,” “Section 16(a) Beneficial Ownership Reporting Compliance,” “Corporate Governance” and “Board Structure.”
Information concerning executive officers of the Ameren Companies required by Item 401 of SEC Regulation S-K is reported under a separate caption entitled “Executive Officers of
the Registrants” in Part I of this report.
Ameren Missouri and Ameren Illinois do not have separately designated standing audit committees, but instead use Ameren’s audit and risk committee to perform such committee functions for their boards of directors. These companies do not have securities listed on the NYSE and therefore are not subject to the NYSE listing standards. Walter J. Galvin serves as chairman of Ameren’s audit and risk committee and Catherine S. Brune, J. Edward Coleman, and Ellen M. Fitzsimmons serve as members. The board of directors of Ameren has determined that Walter J. Galvin and J. Edward Coleman each qualify as an audit committee financial expert and that each is “independent” as that term is used in SEC Regulation 14A.
Also, on the same basis as reported above, the boards of directors of Ameren Missouri and Ameren Illinois use the nominating and corporate governance committee of Ameren’s board of directors to perform such committee functions. This committee is responsible for the nomination of directors and for corporate governance practices. Ameren’s nominating and corporate governance committee will consider director
nominations from shareholders in accordance with its Policy Regarding Nominations of Directors, which can be found on Ameren’s website: www.ameren.com.
To encourage ethical conduct in its financial management and reporting, Ameren has adopted a code of ethics that applies to the principal executive officer, the president, the principal financial officer, the principal accounting officer, the controller, and the treasurer of each of the Ameren Companies. Ameren has also adopted a code of business conduct that applies to the directors, officers, and employees of the Ameren Companies. It is referred to as the Principles of Business Conduct. The Ameren
Companies make available free of charge through Ameren’s website (www.ameren.com) the Code of Ethics and the Principles of Business Conduct. Any amendment to the Code of Ethics or the Principles of Business Conduct and any waiver from a provision of the Code of Ethics or the Principles of Business Conduct as it relates to the principal executive officer, the president, the principal financial officer, the principal accounting officer, the controller, or the treasurer of each of the Ameren Companies will be posted on Ameren’s website within four business days following the date of the amendment or waiver.
Item 11. EXECUTIVE COMPENSATION
Information required by Items 402 and 407(e)(4) and (e)(5) of SEC Regulation S-K for Ameren will be included in its definitive proxy statement for its 2017 annual meeting of shareholders filed pursuant to SEC Regulation 14A; it is incorporated herein by reference. Information required by these SEC Regulation S-K items for Ameren Missouri and Ameren Illinois will be included in each company’s definitive information statement for its 2017 annual meeting of shareholders filed pursuant to SEC Regulation 14C; it is incorporated herein by reference. Specifically, reference is made to the following sections of Ameren’s definitive proxy statement and to each of Ameren Missouri’s and Ameren Illinois’ definitive information statements: “Executive Compensation” and “Human Resources Committee Interlocks and Insider Participation.”
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
Equity Compensation Plan Information
The following table presents information as of December 31, 2016, with respect to the shares of Ameren’s common stock that may be issued under its existing equity compensation plans.
| Plan Category | Column A Number of Securities To Be Issued Upon Exercise of Outstanding Options, Warrants and Rights(a) | Column B Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights | Column C Number of Securities Remaining Available for Future Issuance Equity Compensation Plans (excluding securities reflected in Column A) | ||||||
| Equity compensation plans approved by security holders(b) | 1,995,995 | (c) | 5,832,009 | ||||||
| Equity compensation plans not approved by security holders | — | — | — | ||||||
| Total | 1,995,995 | (c) | 5,832,009 |
| (a) | Pursuant to grants of performance share units (PSUs) under the 2006 Plan, 721,360 of the securities represent the estimated number of PSUs that were vested as of December 31, 2016 (including accrued and reinvested dividends), and 1,213,013 of the securities represent the target number of PSUs granted but not vested (including accrued and reinvested dividends) as of December 31, 2016 (including outstanding awards under the 2014 Incentive Plan as of December 31, 2016). The actual number of shares issued in respect of the PSUs will vary from 0% to 200% of the target level, depending upon the achievement of total shareholder return objectives established for such awards. For additional information about the PSUs, including payout calculations, see “Compensation Discussion and Analysis – Long-Term Incentives: Performance Share Unit Program ("PSUP")” in Ameren’s definitive proxy statement for its 2017 annual meeting of shareholders, which will be filed pursuant to SEC Regulation 14A. Also, 61,622 of the securities represent shares that may be issued as of December 31, 2016, to satisfy obligations under the Ameren Corporation Deferred Compensation Plan for members of the board of directors. |
| (b) | Consists of the 2006 Incentive Plan and the 2014 Incentive Plan. The 2014 Incentive Plan replaced the 2006 Incentive Plan for any new grants made after April 24, 2014. |
| (c) | Earned PSUs and deferred compensation stock units are paid in shares of Ameren common stock on a one-for-one basis. Accordingly, the PSUs and deferred compensation stock units do not have a weighted-average exercise price. |
Ameren Missouri and Ameren Illinois do not have separate equity compensation plans.
Security Ownership of Certain Beneficial Owners and Management
The information required by Item 403 of SEC Regulation S-K for Ameren will be included in its definitive proxy statement for its 2017 annual meeting of shareholders filed pursuant to SEC Regulation 14A; it is incorporated herein by reference. Information required by this SEC Regulation S-K item for Ameren Missouri and Ameren Illinois will be included in each company’s definitive information statement for its 2017 annual meeting of shareholders filed pursuant to SEC Regulation 14C; it is incorporated herein by reference. Specifically, reference is made to the following section of Ameren’s definitive proxy statement and each of Ameren Missouri’s and Ameren Illinois’ definitive information statement: “Security Ownership.”
Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
Information required by Items 404 and 407(a) of SEC Regulation S-K for Ameren will be included in its definitive proxy statement for its 2017 annual meeting of shareholders filed pursuant to SEC Regulation 14A; it is incorporated herein by reference. Information required by these SEC Regulation S-K items for Ameren Missouri and Ameren Illinois will be included in each company’s definitive information statement for its 2017 annual meeting of shareholders filed pursuant to SEC Regulation 14C; it is incorporated herein by reference. Specifically, reference is made to the following sections of Ameren’s definitive proxy statement and to each of Ameren Missouri’s and Ameren Illinois’ definitive information statements: “Policy and Procedures With Respect to Related Person Transactions” and “Director Independence.”
Item 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Information required by Item 9(e) of SEC Schedule 14A for the Ameren Companies will be included in the definitive proxy statement of Ameren and the definitive information statements of Ameren Missouri and Ameren Illinois for their 2017 annual meetings of shareholders filed pursuant to SEC Regulations 14A and 14C, respectively; it is incorporated herein by reference. Specifically, reference is made to the following section of Ameren’s definitive proxy statement and each of Ameren Missouri’s and Ameren Illinois’ definitive information statement: “Independent Registered Public Accounting Firm.”
PART IV
Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
| Page No. | |
| (a)(1) Financial Statements | |
| Ameren | |
| Report of Independent Registered Public Accounting Firm | 69 |
| Consolidated Statement of Income – Years Ended December 31, 2016, 2015, and 2014 | 71 |
| Consolidated Statement of Comprehensive Income – Years Ended December 31, 2016, 2015, and 2014 | 72 |
| Consolidated Balance Sheet – December 31, 2016 and 2015 | 73 |
| Consolidated Statement of Cash Flows – Years Ended December 31, 2016, 2015, and 2014 | 74 |
| Consolidated Statement of Shareholders’ Equity – Years Ended December 31, 2016, 2015, and 2014 | 75 |
| Ameren Missouri | |
| Report of Independent Registered Public Accounting Firm | 69 |
| Statement of Income and Comprehensive Income – Years Ended December 31, 2016, 2015, and 2014 | 76 |
| Balance Sheet – December 31, 2016 and 2015 | 77 |
| Statement of Cash Flows – Years Ended December 31, 2016, 2015, and 2014 | 78 |
| Statement of Shareholders’ Equity – Years Ended December 31, 2016, 2015, and 2014 | 79 |
| Ameren Illinois | |
| Report of Independent Registered Public Accounting Firm | 70 |
| Statement of Income and Comprehensive Income – Years Ended December 31, 2016, 2015, and 2014 | 80 |
| Balance Sheet – December 31, 2016 and 2015 | 81 |
| Statement of Cash Flows – Years Ended December 31, 2016, 2015, and 2014 | 82 |
| Statement of Shareholders’ Equity – Years Ended December 31, 2016, 2015, and 2014 | 83 |
| (a)(2) Financial Statement Schedules | |
| Schedule I – Condensed Financial Information of Parent – Ameren: | |
| Condensed Statement of Income (Loss) and Comprehensive Income (Loss) – Years Ended December 31, 2016, 2015, and 2014 | 140 |
| Condensed Balance Sheet – December 31, 2016 and 2015 | 141 |
| Condensed Statement of Cash Flows – Years Ended December 31, 2016, 2015, and 2014 | 142 |
| Schedule II – Valuation and Qualifying Accounts for the years ended December 31, 2016, 2015, and 2014 | 144 |
Schedule I and II should be read in conjunction with the aforementioned financial statements. Certain schedules have been omitted because they are not applicable or because the required data is shown in the aforementioned financial statements.
| (a)(3) | Exhibits – reference is made to the Exhibit Index | 149 | |
| (b) | Exhibit Index | 149 |
| SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT AMEREN CORPORATION CONDENSED STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Years Ended December 31, 2016, 2015, and 2014 | |||||||||||
| (In millions) | 2016 | 2015 | 2014 | ||||||||
| Operating revenues | $ | — | $ | — | $ | — | |||||
| Operating expenses | 14 | 14 | 11 | ||||||||
| Operating loss | (14 | ) | (14 | ) | (11 | ) | |||||
| Equity in earnings of subsidiaries | 663 | 600 | 607 | ||||||||
| Interest income from affiliates | 10 | 6 | 3 | ||||||||
| Total other income (expense), net | (5 | ) | (5 | ) | 2 | ||||||
| Interest charges | 28 | 3 | 16 | ||||||||
| Income tax (benefit) | (27 | ) | 5 | (2 | ) | ||||||
| Net Income Attributable to Ameren Common Shareholders – Continuing Operations | 653 | 579 | 587 | ||||||||
| Net Income (Loss) Attributable to Ameren Common Shareholders – Discontinued Operations | — | 51 | (1 | ) | |||||||
| Net Income Attributable to Ameren Common Shareholders | $ | 653 | $ | 630 | $ | 586 | |||||
| Net Income Attributable to Ameren Common Shareholders – Continuing Operations | $ | 653 | $ | 579 | $ | 587 | |||||
| Other Comprehensive Income, Net of Taxes: | |||||||||||
| Pension and other postretirement benefit plan activity, net of income taxes (benefit) of $(7), $3, and $(7), respectively | (20 | ) | 6 | (12 | ) | ||||||
| Comprehensive Income from Continuing Operations Attributable to Ameren Common Shareholders | 633 | 585 | 575 | ||||||||
| Comprehensive Income (Loss) from Discontinued Operations Attributable to Ameren Common Shareholders | — | 51 | (1 | ) | |||||||
| Comprehensive Income Attributable to Ameren Common Shareholders | $ | 633 | $ | 636 | $ | 574 |
| SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT AMEREN CORPORATION CONDENSED BALANCE SHEET | |||||||
| (In millions) | December 31, 2016 | December 31, 2015 | |||||
| Assets: | |||||||
| Cash and cash equivalents | $ | 1 | $ | — | |||
| Advances to money pool | 27 | — | |||||
| Accounts receivable – affiliates | 31 | 53 | |||||
| Miscellaneous accounts and notes receivable | 26 | 3 | |||||
| Other current assets | 8 | 9 | |||||
| Total current assets | 93 | 65 | |||||
| Investments in subsidiaries | 7,498 | 7,227 | |||||
| Note receivable – ATXI | 350 | 290 | |||||
| Accumulated deferred income taxes, net | 419 | 426 | |||||
| Other assets | 135 | 158 | |||||
| Total assets | $ | 8,495 | $ | 8,166 | |||
| Liabilities and Shareholders’ Equity: | |||||||
| Short-term debt | 507 | 301 | |||||
| Borrowings from money pool | 33 | 14 | |||||
| Accounts payable – affiliates | 13 | 75 | |||||
| Other current liabilities | 17 | 22 | |||||
| Total current liabilities | 570 | 412 | |||||
| Long-term debt | 694 | 694 | |||||
| Pension and other postretirement benefits | 45 | 33 | |||||
| Other deferred credits and liabilities | 83 | 81 | |||||
| Total liabilities | 1,392 | 1,220 | |||||
| Commitments and Contingencies (Notes 4 and 5) | |||||||
| Shareholders’ Equity: | |||||||
| Common stock, $.01 par value, 400.0 shares authorized – shares outstanding of 242.6 | 2 | 2 | |||||
| Other paid-in capital, principally premium on common stock | 5,556 | 5,616 | |||||
| Retained earnings | 1,568 | 1,331 | |||||
| Accumulated other comprehensive loss | (23 | ) | (3 | ) | |||
| Total shareholders’ equity | 7,103 | 6,946 | |||||
| Total liabilities and shareholders’ equity | $ | 8,495 | $ | 8,166 |
| SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT AMEREN CORPORATION CONDENSED STATEMENT OF CASH FLOWS For the Years Ended December 31, 2016, 2015, and 2014 | ||||||||||||
| (In millions) | 2016 | 2015 | 2014 | |||||||||
| Net cash flows provided by operating activities | $ | 483 | $ | 551 | $ | 528 | ||||||
| Cash flows from investing activities: | ||||||||||||
| Money pool advances, net | (27 | ) | 55 | 279 | ||||||||
| Notes receivable – affiliates, net | (60 | ) | (96 | ) | (134 | ) | ||||||
| Investments in subsidiaries | (123 | ) | (509 | ) | (280 | ) | ||||||
| Distributions from subsidiaries | — | — | 215 | |||||||||
| Proceeds from note receivable – Marketing Company | — | 20 | 95 | |||||||||
| Contributions to note receivable – Marketing Company | — | (8 | ) | (89 | ) | |||||||
| Other | 2 | (24 | ) | (12 | ) | |||||||
| Net cash flows provided by (used in) investing activities | (208 | ) | (562 | ) | 74 | |||||||
| Cash flows from financing activities: | ||||||||||||
| Dividends on common stock | (416 | ) | (402 | ) | (390 | ) | ||||||
| Short-term debt, net | 206 | (284 | ) | 217 | ||||||||
| Money pool borrowings, net | 19 | 14 | — | |||||||||
| Maturities of long-term debt | — | — | (425 | ) | ||||||||
| Issuances of long-term debt | — | 700 | — | |||||||||
| Capital issuance costs | — | (6 | ) | — | ||||||||
| Share-based payments | (83 | ) | (12 | ) | (14 | ) | ||||||
| Net cash flows provided by (used in) financing activities | (274 | ) | 10 | (612 | ) | |||||||
| Net change in cash and cash equivalents | $ | 1 | $ | (1 | ) | $ | (10 | ) | ||||
| Cash and cash equivalents at beginning of year | — | 1 | 11 | |||||||||
| Cash and cash equivalents at end of year | $ | 1 | $ | — | $ | 1 | ||||||
| Cash dividends received from consolidated subsidiaries | $ | 465 | $ | 575 | $ | 340 | ||||||
| Noncash investing activity – investments in subsidiaries | — | (38 | ) | (19 | ) |
AMEREN CORPORATION (parent company only)
NOTES TO CONDENSED FINANCIAL STATEMENTS
December 31, 2016
NOTE 1 – BASIS OF PRESENTATION
Ameren Corporation (parent company only) is a public utility holding company that conducts substantially all of its business operations through its subsidiaries. Ameren Corporation (parent company only) has accounted for its subsidiaries using the equity method. These financial statements are presented on a condensed basis.
See Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of this report for additional information. See Note 14 – Related Party Transactions under Part II, Item 8, of this report for information on the tax allocation agreement between Ameren Corporation (parent company only) and its subsidiaries.
NOTE 2 – SHORT-TERM DEBT AND LIQUIDITY
Ameren, Ameren Services, and other non-state-regulated Ameren subsidiaries have the ability, subject to Ameren parent company and applicable regulatory short-term borrowing authorizations, to access funding from the Credit Agreements and the commercial paper programs through a non-state-regulated subsidiary money pool agreement. All participants may borrow from or lend to the non-state-regulated money pool. The total amount available to pool participants from the non-state-regulated subsidiary money pool at any given time is reduced by the amount of borrowings made by participants, but is increased to the extent that the pool participants advance surplus funds to the non-state-regulated subsidiary money pool or remit funds from other external sources. The non-state-regulated subsidiary money pool was established to coordinate and to provide short-term cash and working capital for the participants. Participants receiving a loan under the non-state-regulated subsidiary money pool agreement must repay the principal amount of such loan, together with accrued interest. The rate of interest depends on the composition of internal and external funds in the non-state-regulated subsidiary money pool. Interest revenues and interest
charges related to non-state-regulated money pool advances and borrowings were immaterial in 2014, 2015 and 2016.
Ameren Corporation (parent company only) had a total of $51 million in guarantees outstanding, primarily for ATXI, that were not recorded on its December 31, 2016 balance sheet. The ATXI guarantees were issued to local governments as assurance for potential remediation of damage caused by ATXI construction.
See Note 4 – Short-term Debt and Liquidity under Part II, Item 8, of this report for a description and details of short-term debt and liquidity needs of Ameren Corporation (parent company only).
NOTE 3 – LONG-TERM OBLIGATIONS
See Note 5 – Long-term Debt and Equity Financings under Part II, Item 8, of this report for additional information on Ameren Corporation's (parent company only) long-term debt, indenture provisions, and restricted cash balance.
NOTE 4 – COMMITMENTS AND CONTINGENCIES
See Note 15 – Commitments and Contingencies under Part II, Item 8, of this report for a description of all material contingencies of Ameren Corporation (parent company only).
NOTE 5 – DIVESTITURE TRANSACTIONS AND DISCONTINUED OPERATIONS
See Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of this report for information regarding the divestiture transactions and discontinued operations.
| SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014 | |||||||||||||||||||
| (in millions) | |||||||||||||||||||
| Column A | Column B | Column C | Column D | Column E | |||||||||||||||
| Description | Balance at Beginning of Period | (1) Charged to Costs and Expenses | (2) Charged to Other Accounts(a) | Deductions(b) | Balance at End of Period | ||||||||||||||
| Ameren: | |||||||||||||||||||
| Deducted from assets – allowance for doubtful accounts: | |||||||||||||||||||
| 2016 | $ | 19 | $ | 32 | $ | 3 | $ | 35 | $ | 19 | |||||||||
| 2015 | 21 | 33 | 5 | 40 | 19 | ||||||||||||||
| 2014 | 18 | 36 | 4 | 37 | 21 | ||||||||||||||
| Deferred tax valuation allowance: | |||||||||||||||||||
| 2016 | $ | 6 | $ | 7 | $ | (2 | ) | $ | — | $ | 11 | ||||||||
| 2015 | 10 | 4 | (8 | ) | — | 6 | |||||||||||||
| 2014 | 7 | 3 | — | — | 10 | ||||||||||||||
| Ameren Missouri: | |||||||||||||||||||
| Deducted from assets – allowance for doubtful accounts: | |||||||||||||||||||
| 2016 | $ | 7 | $ | 10 | $ | — | $ | 10 | $ | 7 | |||||||||
| 2015 | 8 | 13 | — | 14 | 7 | ||||||||||||||
| 2014 | 5 | 16 | — | 13 | 8 | ||||||||||||||
| Deferred tax valuation allowance: | |||||||||||||||||||
| 2016 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| 2015 | 1 | — | (1 | ) | — | — | |||||||||||||
| 2014 | 1 | — | — | — | 1 | ||||||||||||||
| Ameren Illinois: | |||||||||||||||||||
| Deducted from assets – allowance for doubtful accounts: | |||||||||||||||||||
| 2016 | $ | 12 | $ | 22 | $ | 3 | $ | 25 | $ | 12 | |||||||||
| 2015 | 13 | 20 | 5 | 26 | 12 | ||||||||||||||
| 2014 | 13 | 20 | 4 | 24 | 13 | ||||||||||||||
| Deferred tax valuation allowance: | |||||||||||||||||||
| 2016 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| 2015 | 1 | — | (1 | ) | — | — | |||||||||||||
| 2014 | 1 | — | — | — | 1 |
| (a) | Amounts associated with the allowance for doubtful accounts relate to the uncollectible account reserve associated with receivables purchased by Ameren Illinois from alternative retail electric suppliers, as required by the Illinois Public Utilities Act. The amounts relating to the deferred tax valuation allowance are for items that have expired and were removed from both the underlying accumulated deferred income tax account as well as the offsetting valuation account. |
| (b) | Uncollectible accounts charged off, less recoveries. |
Item 16. FORM 10-K SUMMARY
The Ameren Companies elected not to provide a summary of the Form 10-K.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. The signatures for each undersigned company shall be deemed to relate only to matters having reference to such company or its subsidiaries.
| AMEREN CORPORATION (registrant) | ||||
| Date: | February 28, 2017 | By | /s/ Warner L. Baxter | |
| Warner L. Baxter Chairman, President and Chief Executive Officer |
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.
| /s/ Warner L. Baxter | Chairman, President and Chief Executive Officer, and Director (Principal Executive Officer) | February 28, 2017 | |||
| Warner L. Baxter | |||||
| /s/ Martin J. Lyons, Jr. | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | February 28, 2017 | |||
| Martin J. Lyons, Jr. | |||||
| /s/ Bruce A. Steinke | Senior Vice President, Finance, and Chief Accounting Officer (Principal Accounting Officer) | February 28, 2017 | |||
| Bruce A. Steinke | |||||
| * | Director | February 28, 2017 | |||
| Catherine S. Brune | |||||
| * | Director | February 28, 2017 | |||
| J. Edward Coleman | |||||
| * | Director | February 28, 2017 | |||
| Ellen M. Fitzsimmons | |||||
| * | Director | February 28, 2017 | |||
| Rafael Flores | |||||
| * | Director | February 28, 2017 | |||
| Walter J. Galvin | |||||
| * | Director | February 28, 2017 | |||
| Richard J. Harshman | |||||
| * | Director | February 28, 2017 | |||
| Gayle P. W. Jackson | |||||
| * | Director | February 28, 2017 | |||
| James C. Johnson | |||||
| * | Director | February 28, 2017 | |||
| Steven H. Lipstein | |||||
| * | Director | February 28, 2017 | |||
| Stephen R. Wilson | |||||
| *By | /s/ Martin J. Lyons, Jr. | February 28, 2017 |
| Martin J. Lyons, Jr. | |||||
| Attorney-in-Fact |
| UNION ELECTRIC COMPANY (registrant) | ||||
| Date: | February 28, 2017 | By | /s/ Michael L. Moehn | |
| Michael L. Moehn Chairman and President |
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.
| /s/ Michael L. Moehn | Chairman and President, and Director (Principal Executive Officer) | February 28, 2017 | |||
| Michael L. Moehn | |||||
| /s/ Martin J. Lyons, Jr. | Executive Vice President and Chief Financial Officer, and Director (Principal Financial Officer) | February 28, 2017 | |||
| Martin J. Lyons, Jr. | |||||
| /s/ Bruce A. Steinke | Senior Vice President, Finance and Chief Accounting Officer (Principal Accounting Officer) | February 28, 2017 | |||
| Bruce A. Steinke | |||||
| * | Director | February 28, 2017 | |||
| Mark C. Birk | |||||
| * | Director | February 28, 2017 | |||
| Fadi M. Diya | |||||
| * | Director | February 28, 2017 | |||
| Gregory L. Nelson | |||||
| * | Director | February 28, 2017 | |||
| David N. Wakeman | |||||
| *By | /s/ Martin J. Lyons, Jr. | February 28, 2017 | |||
| Martin J. Lyons, Jr. | |||||
| Attorney-in-Fact |
| AMEREN ILLINOIS COMPANY (registrant) | ||||
| Date: | February 28, 2017 | By | /s/ Richard J. Mark | |
| Richard J. Mark Chairman and President |
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.
| /s/ Richard J. Mark | Chairman and President, and Director (Principal Executive Officer) | February 28, 2017 | |||
| Richard J. Mark | |||||
| /s/ Martin J. Lyons, Jr. | Executive Vice President and Chief Financial Officer, and Director (Principal Financial Officer) | February 28, 2017 | |||
| Martin J. Lyons, Jr. | |||||
| /s/ Bruce A. Steinke | Senior Vice President, Finance and Chief Accounting Officer (Principal Accounting Officer) | February 28, 2017 | |||
| Bruce A. Steinke | |||||
| * | Director | February 28, 2017 | |||
| Craig D. Nelson | |||||
| * | Director | February 28, 2017 | |||
| Gregory L. Nelson | |||||
| * | Director | February 28, 2017 | |||
| David N. Wakeman | |||||
| *By | /s/ Martin J. Lyons, Jr. | February 28, 2017 | |||
| Martin J. Lyons, Jr. | |||||
| Attorney-in-Fact |
EXHIBIT INDEX
The documents listed below are being filed or have previously been filed on behalf of the Ameren Companies and are incorporated herein by reference from the documents indicated and made a part hereof. Exhibits not identified as previously filed are filed herewith:
| Exhibit Designation | Registrant(s) | Nature of Exhibit | Previously Filed as Exhibit to: |
| Plan of Acquisition, Reorganization, Arrangement, Liquidation or Succession | |||
| 2.1 | Ameren | Transaction Agreement, dated as of March 14, 2013, between Ameren Corporation and Illinois Power Holdings, LLC | March 19, 2013 Form 8-K, Exhibit 2.1, File No. 1-14756 |
| 2.2 | Ameren | Letter Agreement, dated December 2, 2013, between Ameren Corporation and Illinois Power Holdings, LLC, amending the Transaction Agreement, dated as of March 14, 2013 | December 4, 2013 Form 8-K, Exhibit 2.2, File No. 1-14756 |
| Articles of Incorporation/ By-Laws | |||
| 3.1(i) | Ameren | Restated Articles of Incorporation of Ameren | Annex F to Part I of the Registration Statement on Form S-4, File No. 33-64165 |
| 3.2(i) | Ameren | Certificate of Amendment to Ameren's Restated Articles of Incorporation filed December 14, 1998 | 1998 Form 10-K, Exhibit 3(i), File No. 1-14756 |
| 3.3(i) | Ameren | Certificate of Amendment to Ameren's Restated Articles of Incorporation filed April 21, 2011 | April 21, 2011 Form 8-K, Exhibit 3(i), File No. 1-14756 |
| 3.4(i) | Ameren | Certificate of Amendment to Ameren's Restated Articles of Incorporation filed December 18, 2012 | December 18, 2012 Form 8-K, Exhibit 3.1(i), File No. 1-14756 |
| 3.5(i) | Ameren Missouri | Restated Articles of Incorporation of Ameren Missouri | 1993 Form 10-K, Exhibit 3(i), File No. 1-2967 |
| 3.6(i) | Ameren Illinois | Restated Articles of Incorporation of Ameren Illinois | 2010 Form 10-K, Exhibit 3.4(i), File No. 1-3672 |
| 3.7(ii) | Ameren | By-Laws of Ameren, as amended February 10, 2017 | February 14, 2017 Form 8-K, Exhibit 3, File No. 1-14756 |
| 3.8(ii) | Ameren Missouri | Bylaws of Ameren Missouri, as amended December 12, 2014 | December 18, 2014 Form 8-K, Exhibit 3.1, File No. 1-2967 |
| 3.9(ii) | Ameren Illinois | Bylaws of Ameren Illinois, as amended December 12, 2014 | December 18, 2014 Form 8-K, Exhibit 3.2, File No. 1-3672 |
| Instruments Defining Rights of Security Holders, Including Indentures | |||
| 4.1 | Ameren | Indenture, dated as of December 1, 2001 from Ameren to The Bank of New York Mellon Trust Company, N.A., as successor trustee, relating to senior debt securities (Ameren Indenture) | Exhibit 4.5, File No. 333-81774 |
| 4.2 | Ameren | First Supplemental Indenture to Ameren Senior Indenture dated as of May 19, 2008 | June 30, 2008 Form 10-Q, Exhibit 4.1, File No. 1-14756 |
| 4.3 | Ameren | Ameren Indenture Company Order, dated November 24, 2015, establishing the 2.70% Senior Notes due 2020 and the 3.65% Senior Notes due 2026 (including the global notes) | November 24, 2015 Form 8-K, Exhibits 4.3, 4.4 and 4.5, File No. 1-14756 |
| 4.4 | Ameren Ameren Missouri | Indenture of Mortgage and Deed of Trust, dated June 15, 1937 (Ameren Missouri Mortgage), from Ameren Missouri to The Bank of New York Mellon, as successor trustee, as amended May 1, 1941, and Second Supplemental Indenture dated May 1, 1941 | Exhibit B-1, File No. 2-4940 |
| 4.5 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated as of July 1, 1956 | August 2, 1956 Form 8-K, Exhibit 2, File No. 1-2967 |
| 4.6 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated as of April 1, 1971 | April 1971 Form 8-K, Exhibit 6, File No. 1-2967 |
| 4.7 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated as of February 1, 1974 | February 1974 Form 8-K, Exhibit 3, File No. 1-2967 |
| 4.8 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated as of July 7, 1980 | Exhibit 4.6, File No. 2-69821 |
| 4.9 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated as of October 1, 1993, relative to Series 2028 | 1993 Form 10-K, Exhibit 4.8, File No. 1-2967 |
| 4.10 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated as of February 1, 2000 | 2000 Form 10-K, Exhibit 4.1, File No. 1-2967 |
| 4.11 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated August 15, 2002 | August 23, 2002 Form 8-K, Exhibit 4.3, File No. 1-2967 |
| 4.12 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated March 5, 2003, relative to Series BB | March 11, 2003 Form 8-K, Exhibit 4.4, File No. 1-2967 |
| 4.13 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated July 15, 2003, relative to Series DD | August 4, 2003 Form 8-K, Exhibit 4.4, File No. 1-2967 |
| 4.14 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated October 1, 2003, relative to Series EE | October 8, 2003 Form 8-K, Exhibit 4.4, File No. 1-2967 |
| 4.15 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated February 1, 2004, relative to Series 2004A (1998A) | March 31, 2004 Form 10-Q, Exhibit 4.1, File No. 1-2967 |
| 4.16 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated February 1, 2004, relative to Series 2004B (1998B) | March 31, 2004 Form 10-Q, Exhibit 4.2, File No. 1-2967 |
| 4.17 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated February 1, 2004, relative to Series 2004C (1998C) | March 31, 2004 Form 10-Q, Exhibit 4.3, File No. 1-2967 |
| 4.18 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated February 1, 2004, relative to Series 2004H (1992) | March 31, 2004 Form 10-Q, Exhibit 4.8, File No. 1-2967 |
| 4.19 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated May 1, 2004 relative to Series FF | May 18, 2004 Form 8-K, Exhibit 4.4, File No. 1-2967 |
| 4.20 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated September 1, 2004 relative to Series GG | September 23, 2004 Form 8-K, Exhibit 4.4, File No. 1-2967 |
| 4.21 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated January 1, 2005 relative to Series HH | January 27, 2005 Form 8-K, Exhibit 4.4, File No. 1-2967 |
| 4.22 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated July 1, 2005 relative to Series II | July 21, 2005 Form 8-K, Exhibit 4.4, File No. 1-2967 |
| 4.23 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated June 1, 2007 relative to Series KK | June 15, 2007 Form 8-K, Exhibit 4.5, File No. 1-2967 |
| 4.24 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated April 1, 2008 relative to Series LL | April 8, 2008 Form 8-K, Exhibit 4.7, File No. 1-2967 |
| 4.25 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated June 1, 2008 relative to Series MM | June 19, 2008 Form 8-K, Exhibit 4.5, File No. 1-2967 |
| 4.26 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated March 1, 2009 relative to Series NN | March 23, 2009 Form 8-K, Exhibit 4.5, File No. 1-2967 |
| 4.27 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated May 15, 2012 | Exhibit 4.45, File No. 333-182258 |
| 4.28 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated September 1, 2012 relative to Series OO | September 11, 2012 Form 8-K, Exhibit 4.4, File No. 1-2967 |
| 4.29 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated April 1, 2014 relative to Series PP | April 4, 2014 Form 8-K, Exhibit 4.5, File No. 1-2967 |
| 4.30 | Ameren Ameren Missouri | Supplemental Indenture to the Ameren Missouri Mortgage dated March 15, 2015 relative to Series QQ | April 6, 2015 Form 8-K, Exhibit 4.5, File No. 1-2967 |
| 4.31 | Ameren Ameren Missouri | Loan Agreement, dated as of December 1, 1992, between the Missouri Environmental Authority and Ameren Missouri, together with Indenture of Trust dated as of December 1, 1992, between the Missouri Environmental Authority and UMB Bank, N.A. as successor trustee to Mercantile Bank of St. Louis, N.A. | 1992 Form 10-K, Exhibit 4.38, File No. 1-2967 |
| 4.32 | Ameren Ameren Missouri | First Amendment, dated as of February 1, 2004, to Loan Agreement dated as of December 1, 1992, between the Missouri Environmental Authority and Ameren Missouri | March 31, 2004 Form 10-Q, Exhibit 4.10, File No. 1-2967 |
| 4.33 | Ameren Ameren Missouri | Series 1998A Loan Agreement, dated as of September 1, 1998, between the Missouri Environmental Authority and Ameren Missouri | September 30, 1998 Form 10-Q, Exhibit 4.28, File No. 1-2967 |
| 4.34 | Ameren Ameren Missouri | First Amendment, dated as of February 1, 2004, to Series 1998A Loan Agreement dated as of September 1, 1998, between the Missouri Environmental Authority and Ameren Missouri | March 31, 2004 Form 10-Q, Exhibit 4.11, File No. 1-2967 |
| 4.35 | Ameren Ameren Missouri | Series 1998B Loan Agreement, dated as of September 1, 1998, between the Missouri Environmental Authority and Ameren Missouri | September 30, 1998 Form 10-Q, Exhibit 4.29, File No. 1-2967 |
| 4.36 | Ameren Ameren Missouri | First Amendment, dated as of February 1, 2004, to Series 1998B Loan Agreement dated as of September 1, 1998, between the Missouri Environmental Authority and Ameren Missouri | March 31, 2004 Form 10-Q, Exhibit 4.12, File No. 1-2967 |
| 4.37 | Ameren Ameren Missouri | Series 1998C Loan Agreement, dated as of September 1, 1998, between the Missouri Environmental Authority and Ameren Missouri | September 30, 1998 Form 10-Q, Exhibit 4.30, File No. 1-2967 |
| 4.38 | Ameren Ameren Missouri | First Amendment, dated as of February 1, 2004, to Series 1998C Loan Agreement dated as of September 1, 1998, between the Missouri Environmental Authority and Ameren Missouri | March 31, 2004 Form 10-Q, Exhibit 4.13, File No. 1-2967 |
| 4.39 | Ameren Ameren Missouri | Indenture, dated as of August 15, 2002, from Ameren Missouri to The Bank of New York Mellon, as successor trustee (relating to senior secured debt securities) (Ameren Missouri Indenture) | August 23, 2002 Form 8-K, Exhibit 4.1, File No. 1-2967 |
| 4.40 | Ameren Ameren Missouri | First Supplemental Indenture to the Ameren Missouri Indenture, dated as of May 15, 2012 | Exhibit 4.48, File No. 333-182258 |
| 4.41 | Ameren Ameren Missouri | Ameren Missouri Indenture Company Order, dated March 10, 2003, establishing the 5.50% Senior Secured Notes due 2034 (including the global note) | March 11, 2003 Form 8-K, Exhibits 4.2 and 4.3, File No. 1-2967 |
| 4.42 | Ameren Ameren Missouri | Ameren Missouri Indenture Company Order, dated July 28, 2003, establishing the 5.10% Senior Secured Notes due 2018 (including the global note) | August 4, 2003 Form 8-K, Exhibits 4.2 and 4.3, File No. 1-2967 |
| 4.43 | Ameren Ameren Missouri | Ameren Missouri Indenture Company Order, dated September 1, 2004, establishing the 5.10% Senior Secured Notes due 2019 (including the global note) | September 23, 2004 Form 8-K, Exhibits 4.2 and 4.3, File No. 1-2967 |
| 4.44 | Ameren Ameren Missouri | Ameren Missouri Indenture Company Order, dated January 27, 2005, establishing the 5.00% Senior Secured Notes due 2020 (including the global note) | January 27, 2005 Form 8-K, Exhibits 4.2 and 4.3, File No. 1-2967 |
| 4.45 | Ameren Ameren Missouri | Ameren Missouri Indenture Company Order, dated July 21, 2005, establishing the 5.30% Senior Secured Notes due 2037 (including the global note) | July 21, 2005 Form 8-K, Exhibits 4.2 and 4.3, File No. 1-2967 |
| 4.46 | Ameren Ameren Missouri | Ameren Missouri Indenture Company Order, dated June 15, 2007, establishing the 6.40% Senior Secured Notes due 2017 (including the global note) | June 15, 2007 Form 8-K, Exhibits 4.2 and 4.3, File No. 1-2967 |
| 4.47 | Ameren Ameren Missouri | Ameren Missouri Indenture Company Order, dated April 8, 2008, establishing the 6.00% Senior Secured Notes due 2018 (including the global note) | April 8, 2008 Form 8-K, Exhibits 4.3 and 4.5, File No. 1-2967 |
| 4.48 | Ameren Ameren Missouri | Ameren Missouri Indenture Company Order, dated June 19, 2008, establishing the 6.70% Senior Secured Notes due 2019 (including the global note) | June 19, 2008 Form 8-K, Exhibits 4.2 and 4.3, File No. 1-2967 |
| 4.49 | Ameren Ameren Missouri | Ameren Missouri Indenture Company Order, dated March 20, 2009, establishing the 8.45% Senior Secured Notes due 2039 (including the global note) | March 23, 2009 Form 8-K, Exhibits 4.2 and 4.3, File No. 1-2967 |
| 4.50 | Ameren Ameren Missouri | Ameren Missouri Indenture Company Order, dated September 11, 2012, establishing the 3.90% Senior Secured Notes due 2042 (including the global note) | September 30, 2012 Form 10-Q, Exhibit 4.1 and September 11, 2012 Form 8-K, Exhibit 4.2, File No. 1-2967 |
| 4.51 | Ameren Ameren Missouri | Ameren Missouri Indenture Company Order, dated April 4, 2014, establishing the 3.50% Senior Secured Notes due 2024 (including the global note) | April 4, 2014 Form 8-K, Exhibits 4.2 and 4.3, File No. 1-2967 |
| 4.52 | Ameren Ameren Missouri | Ameren Missouri Indenture Company Order, dated April 6, 2015, establishing the 3.65% Senior Secured Notes due 2045 (including the global note) | April 6, 2015 Form 8-K, Exhibits 4.2 and 4.3, File No. 1-2967 |
| 4.53 | Ameren Ameren Missouri | Ameren Missouri Indenture Company Order, dated June 23, 2016, requesting authentication of an additional $150,000,000 aggregate principal amount of 3.65% Senior Secured Notes due 2045 (including the global note) | June 30, 2016 Form 10-Q, Exhibit 4.1, File No. 1-2967 |
| 4.54 | Ameren Ameren Illinois | Indenture, dated as of December 1, 1998, from Ameren Illinois (formerly Central Illinois Public Service Company) to The Bank of New York Mellon Trust Company, N.A., as successor trustee (CIPS Indenture) | Exhibit 4.4, File No. 333-59438 |
| 4.55 | Ameren Ameren Illinois | First Supplemental Indenture to the CIPS Indenture, dated as of June 14, 2006 | June 19, 2006 Form 8-K, Exhibit 4.2, File No. 1-3672 |
| 4.56 | Ameren Ameren Illinois | Second Supplemental Indenture to the CIPS Indenture, dated as of March 1, 2010 | Exhibit 4.17, File No. 333-166095 |
| 4.57 | Ameren Ameren Illinois | Third Supplemental Indenture to the CIPS Indenture, dated as of October 1, 2010 | 2010 Form 10-K, Exhibit 4.59, File No. 1-3672 |
| 4.58 | Ameren Ameren Illinois | Ameren Illinois Global Note, dated October 1, 2010, representing CIPS Indenture Senior Notes, 6.125% due 2028 | 2010 Form 10-K, Exhibit 4.60, File No. 1-3672 |
| 4.59 | Ameren Ameren Illinois | Ameren Illinois Global Note, dated October 1, 2010, representing CIPS Indenture Senior Notes, 6.70% Series Secured Notes due 2036 | 2010 Form 10-K, Exhibit 4.62, File No. 1-3672 |
| 4.60 | Ameren Ameren Illinois | Indenture of Mortgage and Deed of Trust between Ameren Illinois (successor in interest to Central Illinois Light Company and Illinois Power Company) and Deutsche Bank Trust Company Americas (formerly Bankers Trust Company), as trustee, dated as of April 1, 1933 (CILCO Mortgage), Supplemental Indenture between the same parties dated as of June 30, 1933, Supplemental Indenture between CILCO (predecessor in interest to Ameren Illinois) and the trustee, dated as of July 1, 1933, Supplemental Indenture between the same parties dated as of January 1, 1935, and Supplemental Indenture between the same parties dated as of April 1, 1940 | Exhibit B-1, Registration No. 2-1937; Exhibit B-1(a), Registration No. 2-2093; and Exhibit A, April 1940 Form 8-K, File No. 1-2732 |
| 4.61 | Ameren Ameren Illinois | Supplemental Indenture to the CILCO Mortgage, dated December 1, 1949 | December 1949 Form 8-K, Exhibit A, File No. 1-2732 |
| 4.62 | Ameren Ameren Illinois | Supplemental Indenture to the CILCO Mortgage, dated July 1, 1957 | July 1957 Form 8-K, Exhibit A, File No. 1-2732 |
| 4.63 | Ameren Ameren Illinois | Supplemental Indenture to the CILCO Mortgage, dated February 1, 1966 | February 1966 Form 8-K, Exhibit A, File No. 1-2732 |
| 4.64 | Ameren Ameren Illinois | Supplemental Indenture to the CILCO Mortgage, dated January 15, 1992 | January 30, 1992 Form 8-K, Exhibit 4(b), File No. 1-2732 |
| 4.65 | Ameren Ameren Illinois | Supplemental Indenture to the CILCO Mortgage, dated June 1, 2006 for the Series BB | June 19, 2006 Form 8-K, Exhibit 4.11, File No. 1-2732 |
| 4.66 | Ameren Ameren Illinois | Supplemental Indenture to the CILCO Mortgage, dated as of October 1, 2010 | October 7, 2010 Form 8 K, Exhibit 4.4, File No. 1-14756 |
| 4.67 | Ameren Ameren Illinois | Indenture, dated as of June 1, 2006, from Ameren Illinois (successor in interest to Central Illinois Light Company) to The Bank of New York Mellon Trust Company, N.A., as successor trustee (CILCO Indenture) | June 19, 2006 Form 8-K, Exhibit 4.3, File No. 1-2732 |
| 4.68 | Ameren Ameren Illinois | First Supplemental Indenture to the CILCO Indenture, dated October 1, 2010 | October 7, 2010 Form 8 K, Exhibit 4.1, File No. 1-3672 |
| 4.69 | Ameren Ameren Illinois | Second Supplemental Indenture to the CILCO Indenture dated as of July 21, 2011 | September 30, 2011 Form 10-Q, Exhibit 4.1, File No. 1-3672 |
| 4.70 | Ameren Ameren Illinois | CILCO Indenture Company Order, dated June 14, 2006, establishing the 6.70% Senior Secured Notes due 2036 (including the global note) | June 19, 2006 Form 8-K, Exhibit 4.6, File No. 1-2732 |
| 4.71 | Ameren Ameren Illinois | General Mortgage Indenture and Deed of Trust, dated as of November 1, 1992 between Ameren Illinois (successor in interest to Illinois Power Company) and The Bank of New York Mellon Trust Company, N.A., as successor trustee (Ameren Illinois Mortgage) | 1992 Form 10-K, Exhibit 4(cc), File No. 1-3004 |
| 4.72 | Ameren Ameren Illinois | Supplemental Indenture, dated as of March 1, 1998, to Ameren Illinois Mortgage for Series S | Exhibit 4.41, File No. 333-71061 |
| 4.73 | Ameren Ameren Illinois | Supplemental Indenture, dated as of March 1, 1998, to Ameren Illinois Mortgage for Series T | Exhibit 4.42, File No. 333-71061 |
| 4.74 | Ameren Ameren Illinois | Supplemental Indenture amending the Ameren Illinois Mortgage dated as of June 15, 1999 | June 30, 1999 Form 10-Q, Exhibit 4.2, File No. 1-3004 |
| 4.75 | Ameren Ameren Illinois | Supplemental Indenture, dated as of July 15, 1999, to Ameren Illinois Mortgage for Series U | June 30, 1999 Form 10-Q, Exhibit 4.4, File No. 1-3004 |
| 4.76 | Ameren Ameren Illinois | Supplemental Indenture amending the Ameren Illinois Mortgage dated as of December 15, 2002 | December 23, 2002 Form 8-K, Exhibit 4.1, File No. 1-3004 |
| 4.77 | Ameren Ameren Illinois | Supplemental Indenture, dated as of November 15, 2007, to Ameren Illinois Mortgage for Series BB | November 20, 2007 Form 8-K, Exhibit 4.4, File No. 1-3004 |
| 4.78 | Ameren Ameren Illinois | Supplemental Indenture, dated as of April 1, 2008, to Ameren Illinois Mortgage for Series CC | April 8, 2008 Form 8-K, Exhibit 4.9, File No. 1-3004 |
| 4.79 | Ameren Ameren Illinois | Supplemental Indenture, dated as of October 1, 2008, to Ameren Illinois Mortgage for Series DD | October 23, 2008 Form 8-K, Exhibit 4.4, File No. 1-3004 |
| 4.80 | Ameren Ameren Illinois | Supplemental Indenture, dated as of October 1, 2010, to Ameren Illinois Mortgage for Series CIPS-AA, CIPS-BB and CIPS-CC | October 7, 2010 Form 8 K, Exhibit 4.9, File No. 1-3672 |
| 4.81 | Ameren Ameren Illinois | Supplemental Indenture, dated as of January 15, 2011, to Ameren Illinois Mortgage | Exhibit 4.78, File No. 333-182258 |
| 4.82 | Ameren Ameren Illinois | Supplemental Indenture, dated as of August 1, 2012, to Ameren Illinois Mortgage for Series EE | August 20, 2012 Form 8-K, Exhibit 4.4, File No. 1-3672 |
| 4.83 | Ameren Ameren Illinois | Supplemental Indenture, dated as of December 1, 2013, to Ameren Illinois Mortgage for Series FF | December 10, 2013 Form 8-K, Exhibit 4.5, File No. 1-3672 |
| 4.84 | Ameren Ameren Illinois | Supplemental Indenture, dated as of June 1, 2014, to Ameren Illinois Mortgage for Series GG | June 30, 2014 Form 8-K, Exhibit 4.5, File No. 1-3672 |
| 4.85 | Ameren Ameren Illinois | Supplemental Indenture, dated as of December 1, 2014, to Ameren Illinois Mortgage for Series HH | December 10, 2014 Form 8-K, Exhibit 4.5, File No. 1-3672 |
| 4.86 | Ameren Ameren Illinois | Supplemental Indenture, dated as of December 1, 2015, to Ameren Illinois Mortgage for Series II | December 14, 2015 Form 8-K, Exhibit 4.5, File No. 1-3672 |
| 4.87 | Ameren Ameren Illinois | Indenture, dated as of June 1, 2006, from Ameren Illinois (successor in interest to Illinois Power Company) to The Bank of New York Mellon Trust Company, N.A., as successor trustee (Ameren Illinois Indenture) | June 19, 2006 Form 8-K, Exhibit 4.4, File No. 1-3004 |
| 4.88 | Ameren Ameren Illinois | First Supplemental Indenture, dated as of October 1, 2010, to the Ameren Illinois Indenture for Series CIPS-AA, CIPS-BB and CIPS-CC | October 7, 2010 Form 8 K, Exhibit 4.5, File No. 1-14756 |
| 4.89 | Ameren Ameren Illinois | Second Supplemental Indenture to the Ameren Illinois Indenture dated as of July 21, 2011 | September 30, 2011 Form 10-Q, Exhibit 4.2, File No. 1-3672 |
| 4.90 | Ameren Ameren Illinois | Third Supplemental Indenture to the Ameren Illinois Indenture dated as of May 15, 2012 | Exhibit 4.83, File No. 333-182258 |
| 4.91 | Ameren Ameren Illinois | Ameren Illinois Indenture Company Order, dated November 15, 2007, establishing the 6.125% Senior Secured Notes due 2017 (including the global note) | November 20, 2007 Form 8-K, Exhibit 4.2, File No. 1-3004 |
| 4.92 | Ameren Ameren Illinois | Ameren Illinois Indenture Company Order, dated April 8, 2008, establishing the 6.25% Senior Secured Notes due 2018 (including the global note) | April 8, 2008 Form 8-K, Exhibit 4.4, File No. 1-3004 |
| 4.93 | Ameren Ameren Illinois | Ameren Illinois Indenture Company Order dated October 23, 2008, establishing the 9.75% Senior Secured Notes due 2018 (including the global note) | October 23, 2008 Form 8-K, Exhibit 4.2, File No. 1-3004 |
| 4.94 | Ameren Ameren Illinois | Ameren Illinois Indenture Company Order dated August 20, 2012, establishing the 2.70% Senior Secured Notes due 2022 (including the global note) | August 20, 2012 Form 8-K, Exhibits 4.2 and 4.3, File No. 1-3004 |
| 4.95 | Ameren Ameren Illinois | Ameren Illinois Indenture Company Order dated December 10, 2013, establishing the 4.80% Senior Secured Notes due 2043 (including the global note) | December 10, 2013 Form 8-K, Exhibits 4.2 and 4.3, File No. 1-3672 |
| 4.96 | Ameren Ameren Illinois | Ameren Illinois Indenture Company Order dated June 30, 2014, establishing the 4.30% Senior Secured Notes due 2044 (including the global note) | June 30, 2014 Form 8-K, Exhibits 4.2 and 4.3, File No. 1-3672 |
| 4.97 | Ameren Ameren Illinois | Ameren Illinois Indenture Company Order dated December 10, 2014, establishing the 3.25% Senior Secured Notes due 2025 (including the global note) | December 10, 2014 Form 8-K, Exhibits 4.2 and 4.3, File No. 1-3672 |
| 4.98 | Ameren Ameren Illinois | Ameren Illinois Indenture Company Order dated December 14, 2015, establishing the 4.15% Senior Secured Notes due 2046 (including the global note) | December 14, 2015 Form 8-K, Exhibits 4.2 and 4.3, File No. 1-3672 |
| 4.99 | Ameren Ameren Illinois | Ameren Illinois Indenture Company Order dated December 6, 2016, requesting the authentication of an additional $240,000,000 aggregate principal amount of 4.15% Senior Secured Notes due 2046 (including the global note) | December 6, 2016 Form 8-K, Exhibits 4.2 and 4.3, File No. 1-3672 |
| Material Contracts | |||
| 10.1 | Ameren Companies | Fourth Amended Ameren Corporation System Utility Money Pool Agreement, as amended January 30, 2014 | June 30, 2015 Form 10-Q, Exhibit 10.1, File No. 1-14756 |
| 10.2 | Ameren Ameren Missouri | Amended and Restated Credit Agreement, dated as of December 7, 2016, by and among Ameren, Ameren Missouri and JPMorgan Chase Bank, N.A., as agent, and the lenders party thereto. | December 8, 2016 Form 8-K, Exhibit 10.1, File No. 1-2967 |
| 10.3 | Ameren Ameren Illinois | Amended and Restated Credit Agreement, dated as of December 7, 2016, by and among Ameren, Ameren Illinois and JP Morgan Chase Bank, N.A., as agent, and the lenders party thereto. | December 8, 2016 Form 8-K, Exhibit 10.2, File No. 1-3672 |
| 10.4 | Ameren | *Summary Sheet of Ameren Corporation Non-Management Director Compensation revised on October 9, 2015 and effective as of January 1, 2016 | 2015 Form 10-K, Exhibit 10.4, File No. 1-14756 |
| 10.5 | Ameren | *Ameren's Deferred Compensation Plan for Members of the Board of Directors amended and restated effective January 1, 2009, dated June 13, 2008 | June 30, 2008 Form 10-Q, Exhibit 10.3, File No. 1-14756 |
| 10.6 | Ameren Companies | *Amendment dated October 12, 2009, to Ameren's Deferred Compensation Plan for Members of the Board of Directors, effective January 1, 2010 | 2009 Form 10-K, Exhibit 10.15, File No. 1-14756 |
| 10.7 | Ameren Companies | *Amendment dated October 14, 2010, to Ameren's Deferred Compensation Plan for Members of the Board of Directors | 2010 Form 10-K, Exhibit 10.15, File No. 1-14756 |
| 10.8 | Ameren Companies | *Ameren's Deferred Compensation Plan as amended and restated effective January 1, 2010 | October 14, 2009 Form 8-K, Exhibit 10.1, File No. 1-14756 |
| 10.9 | Ameren Companies | *Amendment dated October 14, 2010 to Ameren's Deferred Compensation Plan | 2010 Form 10-K, Exhibit 10.17, File No. 1-14756 |
| 10.10 | Ameren Companies | *2014 Ameren Executive Incentive Plan | March 31, 2014 Form 10-Q, Exhibit 10.1, File No. 1-14756 |
| 10.11 | Ameren Companies | *2015 Ameren Executive Incentive Plan | 2014 Form 10-K, Exhibit 10.13, File No. 1-14756 |
| 10.12 | Ameren Companies | *2016 Ameren Executive Incentive Plan | 2015 Form 10-K, Exhibit 10.17, File No. 1-14756 |
| 10.13 | Ameren Companies | *2017 Ameren Executive Incentive Plan | |
| 10.14 | Ameren Companies | *2014 Base Salary Table for Named Executive Officers | 2013 Form 10-K, Exhibit 10.15, File No. 1-14756 |
| 10.15 | Ameren Companies | *2015 Base Salary Table for Named Executive Officers | 2014 Form 10-K, Exhibit 10.17, File No. 1-14756 |
| 10.16 | Ameren Companies | *2016 Base Salary Table for Named Executive Officers | 2015 Form 10-K, Exhibit 10.17, File No. 1-14756 |
| 10.17 | Ameren Companies | *2017 Base Salary Table for Named Executive Officers | |
| 10.18 | Ameren Companies | *Second Amended and Restated Ameren Corporation Change of Control Severance Plan | 2008 Form 10-K, Exhibit 10.37, File No. 1-14756 |
| 10.19 | Ameren Companies | *First Amendment dated October 12, 2009, to the Second Amended and Restated Ameren Change of Control Severance Plan | October 14, 2009 Form 8-K, Exhibit 10.2, File No. 1-14756 |
| 10.20 | Ameren Companies | *Revised Schedule I to Second Amended and Restated Ameren Change of Control Severance Plan, as amended | |
| 10.21 | Ameren Companies | *Formula for Determining 2014 Target Performance Share Unit Awards to be Issued to Named Executive Officers | March 31, 2014 Form 10-Q, Exhibit 10.2, File No. 1-14756 |
| 10.22 | Ameren Companies | *Formula for Determining 2015 Target Performance Share Unit Awards to be Issued to Named Executive Officers | 2014 Form 10-K, Exhibit 10.17, File No. 1-14756 |
| 10.23 | Ameren Companies | *Formula for Determining 2016 Target Performance Share Unit Awards to be Issued to Named Executive Officers | 2015 Form 10-K, Exhibit 10.24, File No. 1-14756 |
| 10.24 | Ameren Companies | *Formula for Determining 2017 Target Performance Share Unit Awards to be Issued to Named Executive Officers | |
| 10.25 | Ameren Companies | *Ameren Corporation 2006 Omnibus Incentive Compensation Plan | February 16, 2006 Form 8-K, Exhibit 10.3, File No. 1-14756 |
| 10.26 | Ameren Companies | *Form of Performance Share Unit Award Agreement for Awards Issued in 2014 pursuant to 2006 Omnibus Incentive Compensation Plan | March 31, 2014 Form 10-Q, Exhibit 10.3, File No. 1-14756 |
| 10.27 | Ameren Companies | *Ameren Corporation 2014 Omnibus Incentive Compensation Plan | Exhibit 99, File No. 333-196515 |
| 10.28 | Ameren Companies | *Form of Performance Share Unit Award Agreement for Awards Issued in 2014 pursuant to 2014 Omnibus Incentive Compensation Plan | 2014 Form 10-K, Exhibit 10.30, File No. 1-14756 |
| 10.29 | Ameren Companies | *Form of Performance Share Unit Award Agreement for Awards Issued in 2015 pursuant to 2014 Omnibus Incentive Compensation Plan | 2014 Form 10-K, Exhibit 10.31, File No. 1-14756 |
| 10.30 | Ameren Companies | *Form of Performance Share Unit Award Agreement for Awards Issued in 2016 pursuant to 2014 Omnibus Incentive Compensation Plan | 2015 Form 10-K, Exhibit 10.31, File No. 1-14756 |
| 10.31 | Ameren Companies | *Form of Performance Share Unit Award Agreement for Awards Issued in 2017 pursuant to 2014 Omnibus Incentive Compensation Plan | |
| 10.32 | Ameren Companies | *Ameren Supplemental Retirement Plan amended and restated effective January 1, 2008, dated June 13, 2008 | June 30, 2008 Form 10-Q, Exhibit 10.1, File No. 1-14756 |
| 10.33 | Ameren Companies | *First Amendment to amended and restated Ameren Supplemental Retirement Plan, dated October 24, 2008 | 2008 Form 10-K, Exhibit 10.44, File No. 1-14756 |
| Statement re: Computation of Ratios | |||
| 12.1 | Ameren | Ameren's Statement of Computation of Ratio of Earnings to Fixed Charges | |
| 12.2 | Ameren Missouri | Ameren Missouri's Statement of Computation of Ratio of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Stock Dividend Requirements | |
| 12.3 | Ameren Illinois | Ameren Illinois' Statement of Computation of Ratio of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Stock Dividend Requirements | |
| Subsidiaries of the Registrant | |||
| 21.1 | Ameren Companies | Subsidiaries of Ameren |
| Consent of Experts and Counsel | |||
| 23.1 | Ameren | Consent of Independent Registered Public Accounting Firm with respect to Ameren | |
| 23.2 | Ameren Missouri | Consent of Independent Registered Public Accounting Firm with respect to Ameren Missouri | |
| 23.3 | Ameren Illinois | Consent of Independent Registered Public Accounting Firm with respect to Ameren Illinois | |
| Power of Attorney | |||
| 24.1 | Ameren | Powers of Attorney with respect to Ameren | |
| 24.2 | Ameren Missouri | Powers of Attorney with respect to Ameren Missouri | |
| 24.3 | Ameren Illinois | Powers of Attorney with respect to Ameren Illinois | |
| Rule 13a-14(a)/15d-14(a) Certifications | |||
| 31.1 | Ameren | Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer of Ameren | |
| 31.2 | Ameren | Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer of Ameren | |
| 31.3 | Ameren Missouri | Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer of Ameren Missouri | |
| 31.4 | Ameren Missouri | Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer of Ameren Missouri | |
| 31.5 | Ameren Illinois | Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer of Ameren Illinois | |
| 31.6 | Ameren Illinois | Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer of Ameren Illinois | |
| Section 1350 Certifications | |||
| 32.1 | Ameren | Section 1350 Certification of Principal Executive Officer and Principal Financial Officer of Ameren | |
| 32.2 | Ameren Missouri | Section 1350 Certification of Principal Executive Officer and Principal Financial Officer of Ameren Missouri | |
| 32.3 | Ameren Illinois | Section 1350 Certification of Principal Executive Officer and Principal Financial Officer of Ameren Illinois | |
| Additional Exhibits | |||
| 99.1 | Ameren Companies | Amended and Restated Tax Allocation Agreement, dated as of November 21, 2013 | 2013 Form 10-K, Exhibit 99.1, File No. 1-14756 |
| Interactive Data File | |||
| 101.INS | Ameren Companies | XBRL Instance Document | |
| 101.SCH | Ameren Companies | XBRL Taxonomy Extension Schema Document | |
| 101.CAL | Ameren Companies | XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.LAB | Ameren Companies | XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE | Ameren Companies | XBRL Taxonomy Extension Presentation Linkbase Document | |
| 101.DEF | Ameren Companies | XBRL Taxonomy Extension Definition Document |
The file number references for the Ameren Companies' filings with the SEC are: Ameren, 1-14756; Ameren Missouri, 1-2967; and Ameren Illinois, 1-3672.
*Compensatory plan or arrangement.
Each registrant hereby undertakes to furnish to the SEC upon request a copy of any long-term debt instrument not listed above that such registrant has not filed as an exhibit pursuant to the exemption provided by Item 601(b)(4)(iii)(A) of Regulation S-K.