Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders

of Ameren Corporation

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Ameren Corporation and its subsidiaries (the “Company”) as of December 31, 2020 and 2019, and the related consolidated statements of income and comprehensive income, of shareholders’ equity and of cash flows for each of the three years in the period ended December 31, 2020, including the related notes and financial statement schedules listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company’s management is responsible for these consolidated financial statements, 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 the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. 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.

Definition and Limitations of Internal Control over Financial Reporting

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.

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Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Accounting for the Effects of Regulation

As described in Notes 1 and 2 to the consolidated financial statements, the Company has operations that are subject to the decisions and requirements of its regulators. The Company’s use of accounting guidance for rate-regulated businesses results in recording regulatory assets and liabilities for certain transactions that management expects will be recovered from or returned to customers in future rates. Regulatory assets and liabilities are amortized consistent with the period of expected regulatory treatment. As of December 31, 2020, the Company’s consolidated balance sheet reflected $1.2 billion of regulatory assets and $5.4 billion of regulatory liabilities. As disclosed by management, in some cases, management must apply judgment related to the probability of recovery if regulatory balances are recorded before approval has been received from the regulator or probability of refund of amounts collected in rates that may be returned to customers. Additionally, management recognizes revenue for alternative revenue programs that allow for an automatic rate adjustment, are probable of recovery, and are collected within 24 months of the end of the annual period in which they are recognized. Management’s conclusions are based on certain factors including, but not limited to, regulatory commission orders, legislation, or historical experience, as well as management’s discussions with legal counsel.

The principal considerations for our determination that performing procedures relating to accounting for the effects of regulation is a critical audit matter are the significant judgment by management when accounting for (i) new or existing regulatory assets or liabilities that were impacted by updates in regulatory commission orders, legislation, historical experience, or management’s discussions with legal counsel, (ii) the probability of recovery of regulatory assets and refund of regulatory liabilities recorded before approval has been received from the regulator, and (iii) regulatory mechanisms meeting the alternative revenue program criteria, which in turn led to a high degree of auditor judgment, subjectivity, and effort when performing audit procedures and evaluating audit evidence obtained related to management’s application of regulatory accounting, assessment of probability of recovery of regulatory assets and refund of regulatory liabilities, and expected timing of collection within 24 months of the end of the annual period in which mechanisms are recognized.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s implementation and application of new or existing regulatory assets or liabilities, including controls related to evaluating the probability of recovery of regulatory assets and refund of regulatory liabilities, and alternative revenue programs. These procedures also included, among others, (i) testing calculations of new and existing regulatory assets or liabilities by comparison to provisions and formulas outlined in regulatory commission orders, legislation, or external legal counsel correspondence, (ii) evaluating management’s assessment of the probability of recovery of regulatory assets and refund of regulatory liabilities, and (iii) evaluating management’s assessment of regulatory mechanisms meeting the alternative revenue program criteria and the expected timing of collection within 24 months of the end of the annual period in which mechanisms are recognized.

/s/ PricewaterhouseCoopers LLP

St. Louis, Missouri

February 22, 2021

We have served as the Company’s auditor since at least 1932. We have not been able to determine the specific year we began serving as auditor of the Company.

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Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders

of Union Electric Company

Opinion on the Financial Statements

We have audited the accompanying balance sheets of Union Electric Company (the “Company”) as of December 31, 2020 and 2019, and the related statements of income, of shareholders’ equity and of cash flows for each of the three years in the period ended December 31, 2020, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Accounting for the Effects of Regulation

As described in Notes 1 and 2 to the financial statements, the Company has operations that are subject to the decisions and requirements of its regulators. The Company’s use of accounting guidance for rate-regulated businesses results in recording regulatory assets and liabilities for certain transactions that management expects will be recovered from or returned to customers in future rates. Regulatory assets and liabilities are amortized consistent with the period of expected regulatory treatment. As of December 31, 2020, the Company’s balance sheet reflected $0.4 billion of regulatory assets and $3.1 billion of regulatory liabilities. As disclosed by management, in some cases, management must apply judgment related to the probability of recovery if regulatory balances are recorded before approval has been received from the regulator or probability of refund of amounts collected in rates that may be returned to customers. Management’s conclusions are based on certain factors including, but not limited to, regulatory commission orders, legislation, or historical experience, as well as management’s discussions with legal counsel.

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evaluating audit evidence obtained related to management’s application of regulatory accounting and assessment of probability of recovery of regulatory assets and refund of regulatory liabilities.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements. These procedures included testing the effectiveness of controls relating to management’s implementation and application of new or existing regulatory assets or liabilities, including controls related to evaluating the probability of recovery of regulatory assets and refund of regulatory liabilities. These procedures also included, among others, (i) testing calculations of new and existing regulatory assets or liabilities by comparison to provisions and formulas outlined in regulatory commission orders, legislation, or external legal counsel correspondence, and (ii) evaluating management’s assessment of the probability of recovery of regulatory assets and refund of regulatory liabilities.

/s/ PricewaterhouseCoopers LLP

St. Louis, Missouri

February 22, 2021

We have served as the Company’s auditor since at least 1932. We have not been able to determine the specific year we began serving as auditor of the Company.

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Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders

of Ameren Illinois Company

Opinion on the Financial Statements

We have audited the accompanying balance sheets of Ameren Illinois Company (the “Company”) as of December 31, 2020 and 2019, and the related statements of income, of shareholders’ equity and of cash flows for each of the three years in the period ended December 31, 2020, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

Critical Audit Matters

Accounting for the Effects of Regulation

As described in Notes 1 and 2 to the financial statements, the Company has operations that are subject to the decisions and requirements of its regulators. The Company’s use of accounting guidance for rate-regulated businesses results in recording regulatory assets and liabilities for certain transactions that management expects will be recovered from or returned to customers in future rates. Regulatory assets and liabilities are amortized consistent with the period of expected regulatory treatment. As of December 31, 2020, the Company’s balance sheet reflected $0.8 billion of regulatory assets and $2.2 billion of regulatory liabilities. As disclosed by management, in some cases, management must apply judgment related to the probability of recovery if regulatory balances are recorded before approval has been received from the regulator or probability of refund of amounts collected in rates that may be returned to customers. Additionally, management recognizes revenue for alternative revenue programs that allow for an automatic rate adjustment, are probable of recovery, and are collected within 24 months of the end of the annual period in which they are recognized. Management’s conclusions are based on certain factors including, but not limited to, regulatory commission orders, legislation, or historical experience, as well as management’s discussions with legal counsel.

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judgment, subjectivity, and effort when performing audit procedures and evaluating audit evidence obtained related to management’s application of regulatory accounting, assessment of probability of recovery of regulatory assets and refund of regulatory liabilities, and expected timing of collection within 24 months of the end of the annual period in which mechanisms are recognized.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements. These procedures included testing the effectiveness of controls relating to management’s implementation and application of new or existing regulatory assets or liabilities, including controls related to evaluating the probability of recovery of regulatory assets and refund of regulatory liabilities, and alternative revenue programs. These procedures also included, among others, (i) testing calculations of new and existing regulatory assets or liabilities by comparison to provisions and formulas outlined in regulatory commission orders, legislation, or external legal counsel correspondence, (ii) evaluating management’s assessment of the probability of recovery of regulatory assets and refund of regulatory liabilities, and (iii) evaluating management’s assessment of regulatory mechanisms meeting the alternative revenue program criteria and the expected timing of collection within 24 months of the end of the annual period in which mechanisms are recognized.

/s/ PricewaterhouseCoopers LLP

St. Louis, Missouri

February 22, 2021

We have served as the Company’s auditor since 1998.

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AMEREN CORPORATION

CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME

(In millions, except per share amounts)


	Year Ended December 31,
	2020		2019		2018
Operating Revenues:
Electric	$	4,911	$	4,981	$	5,339
Natural gas	883		929		952
Total operating revenues	5,794		5,910		6,291
Operating Expenses:
Fuel	490		535		769
Purchased power	513		556		581
Natural gas purchased for resale	272		331		374
Other operations and maintenance	1,661		1,745		1,772

Depreciation and amortization	1,075		995		955
Taxes other than income taxes	483		481		483
Total operating expenses	4,494		4,643		4,934
Operating Income	1,300		1,267		1,357



Other Income, Net	151		130		102
Interest Charges	419		381		401
Income Before Income Taxes	1,032		1,016		1,058
Income Taxes	155		182		237


Net Income	877		834		821
Less: Net Income Attributable to Noncontrolling Interests	6		6		6





Net Income Attributable to Ameren Common Shareholders	$	871	$	828	$	815


Net Income	$	877	$	834	$	821
Other Comprehensive Income (Loss), Net of Taxes
Pension and other postretirement benefit plan activity, net of income taxes (benefit) of $5, $1, and $(1), respectively	16		5		(4)
Comprehensive Income	893		839		817
Less: Comprehensive Income Attributable to Noncontrolling Interests	6		6		6
Comprehensive Income Attributable to Ameren Common Shareholders	$	887	$	833	$	811





Earnings per Common Share – Basic	$	3.53	$	3.37	$	3.34




Earnings per Common Share – Diluted	$	3.50	$	3.35	$	3.32

Weighted-average Common Shares Outstanding – Basic	247.0		245.6		243.8
Weighted-average Common Shares Outstanding – Diluted	248.7		247.1		245.8

The accompanying notes are an integral part of these consolidated financial statements.

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AMEREN CORPORATION

CONSOLIDATED BALANCE SHEET

(In millions, except per share amounts)


	December 31,
	2020		2019
ASSETS
Current Assets:
Cash and cash equivalents	$	139	$	16
Accounts receivable – trade (less allowance for doubtful accounts of $50 and $17, respectively)	415		393
Unbilled revenue	269		278
Miscellaneous accounts receivable	65		63
Inventories	521		494

Current regulatory assets	109		69

Other current assets	135		118

Total current assets	1,653		1,431
Property, Plant, and Equipment, Net	26,807		24,376
Investments and Other Assets:
Nuclear decommissioning trust fund	982		847
Goodwill	411		411

Regulatory assets	1,100		992
Other assets	1,077		876

Total investments and other assets	3,570		3,126
TOTAL ASSETS	$	32,030	$	28,933
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term debt	$	8	$	442
Short-term debt	490		440
Accounts and wages payable	958		874

Interest accrued	114		94


Current regulatory liabilities	121		164
Other current liabilities	489		491

Total current liabilities	2,180		2,505

Long-term Debt, Net	11,078		8,915
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes and investment tax credits, net	3,211		2,919

Regulatory liabilities	5,282		4,887
Asset retirement obligations	696		638
Pension and other postretirement benefits	37		401
Other deferred credits and liabilities	466		467

Total deferred credits and other liabilities	9,692		9,312
Commitments and Contingencies (Notes 2, 9, and 14)
Ameren Corporation Shareholders’ Equity:
Common stock, $.01 par value, 400.0 shares authorized – shares outstanding of 253.3 and 246.2, respectively	3		2
Other paid-in capital, principally premium on common stock	6,179		5,694
Retained earnings	2,757		2,380
Accumulated other comprehensive loss	(1)		(17)
Total Ameren Corporation shareholders’ equity	8,938		8,059
Noncontrolling Interests	142		142
Total equity	9,080		8,201
TOTAL LIABILITIES AND EQUITY	$	32,030	$	28,933

The accompanying notes are an integral part of these consolidated financial statements.

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AMEREN CORPORATION

CONSOLIDATED STATEMENT OF CASH FLOWS

(In millions)


	Year Ended December 31,
	2020		2019		2018
Cash Flows From Operating Activities:
Net income	$	877	$	834	$	821

Adjustments to reconcile net income to net cash provided by operating activities:



Depreciation and amortization	1,085		1,002		938
Amortization of nuclear fuel	68		79		95
Amortization of debt issuance costs and premium/discounts	22		19		20
Deferred income taxes and investment tax credits, net	148		167		224
Allowance for equity funds used during construction	(32)		(28)		(36)
Stock-based compensation costs	21		20		20

Other	22		(14)		44
Changes in assets and liabilities:
Receivables	(47)		79		(24)
Inventories	(25)		(10)		39
Accounts and wages payable	40		(3)		(22)
Taxes accrued	34		(8)		(10)
Regulatory assets and liabilities	(254)		164		201
Assets, other	(83)		(59)		2
Liabilities, other	(111)		(33)		(117)
Pension and other postretirement benefits	(38)		(39)		(25)





Net cash provided by operating activities	1,727		2,170		2,170
Cash Flows From Investing Activities:
Capital expenditures	(2,669)		(2,411)		(2,286)
Wind generation expenditures	(564)		—		—
Nuclear fuel expenditures	(66)		(31)		(52)
Purchases of securities – nuclear decommissioning trust fund	(224)		(256)		(315)
Sales and maturities of securities – nuclear decommissioning trust fund	183		260		299
Purchase of bonds	—		(207)		—
Proceeds from sale of remarketed bonds	—		207		—




Other	11		3		18



Net cash used in investing activities	(3,329)		(2,435)		(2,336)
Cash Flows From Financing Activities:
Dividends on common stock	(494)		(472)		(451)
Dividends paid to noncontrolling interest holders	(6)		(6)		(6)
Short-term debt, net	50		(157)		112

Maturities of long-term debt	(442)		(580)		(841)


Issuances of long-term debt	2,183		1,527		1,352
Issuances of common stock	476		68		74



Employee payroll taxes related to stock-based compensation	(20)		(29)		(19)
Debt issuance costs	(20)		(17)		(14)
Other	—		—		(2)
Net cash provided by financing activities	1,727		334		205


Net change in cash, cash equivalents, and restricted cash	125		69		39
Cash, cash equivalents, and restricted cash at beginning of year	176		107		68
Cash, cash equivalents, and restricted cash at end of year	$	301	$	176	$	107







Cash Paid During the Year:
Interest (net of $16, $20, and $21 capitalized, respectively)	$	383	$	367	$	387
Income taxes, net	13		13		21

The accompanying notes are an integral part of these consolidated financial statements.

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AMEREN CORPORATION

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

(In millions)


	December 31,
	2020		2019		2018
Common Stock:
Beginning of year	$	2	$	2	$	2
Settlement of forward sale agreement through common shares issuance	1		—		—
Common stock, end of year	3		2		2

Other Paid-in Capital:
Beginning of year	5,694		5,627		5,540
Settlement of forward sale agreement through common shares issuance	424		—		—
Shares issued under the DRPlus and 401(k) plan	51		68		74
Stock-based compensation activity	10		(1)		13

Other paid-in capital, end of year	6,179		5,694		5,627

Retained Earnings:
Beginning of year	2,380		2,024		1,660
Net income attributable to Ameren common shareholders	871		828		815
Dividends on common stock	(494)		(472)		(451)

Retained earnings, end of year	2,757		2,380		2,024

Accumulated Other Comprehensive Loss:




Deferred retirement benefit costs, beginning of year	(17)		(22)		(18)
Change in deferred retirement benefit costs	16		5		(4)

Deferred retirement benefit costs, end of year	(1)		(17)		(22)
Total accumulated other comprehensive loss, end of year	(1)		(17)		(22)
Total Ameren Corporation Shareholders’ Equity	$	8,938	$	8,059	$	7,631

Noncontrolling Interests:
Beginning of year	142		142		142
Net income attributable to noncontrolling interest holders	6		6		6
Dividends paid to noncontrolling interest holders	(6)		(6)		(6)



Noncontrolling interests, end of year	142		142		142
Total Equity	$	9,080	$	8,201	$	7,773


Common stock shares outstanding at beginning of year	246.2		244.5		242.6
Shares issued under forward sale agreement	5.9		—		—
Shares issued under the DRPlus and 401(k) plan	0.7		0.9		1.2
Shares issued for stock-based compensation	0.5		0.8		0.7
Common stock shares outstanding at end of year	253.3		246.2		244.5

Dividends per common share	$	2.0000	$	1.9200	$	1.8475

The accompanying notes are an integral part of these consolidated financial statements.

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UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)

STATEMENT OF INCOME

(In millions)


	Year Ended December 31,
	2020		2019		2018
Operating Revenues:
Electric	$	2,984	$	3,109	$	3,451
Natural gas	125		134		138

Total operating revenues	3,109		3,243		3,589
Operating Expenses:
Fuel	490		535		769
Purchased power	171		193		164
Natural gas purchased for resale	43		53		56
Other operations and maintenance	886		960		972

Depreciation and amortization	604		556		550
Taxes other than income taxes	328		329		329
Total operating expenses	2,522		2,626		2,840
Operating Income	587		617		749



Other Income, Net	76		58		56
Interest Charges	190		178		200
Income Before Income Taxes	473		497		605
Income Taxes	34		68		124





Net Income	439		429		481
Preferred Stock Dividends	3		3		3
Net Income Available to Common Shareholder	$	436	$	426	$	478

The accompanying notes as they relate to Ameren Missouri are an integral part of these financial statements.

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UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)

BALANCE SHEET

(In millions, except per share amounts)


	December 31,
	2020		2019
ASSETS
Current Assets:
Cash and cash equivalents	$	136	$	9
Advances to money pool	139		—
Accounts receivable – trade (less allowance for doubtful accounts of $16 and $7, respectively)	166		164
Accounts receivable – affiliates	57		30
Unbilled revenue	133		139
Miscellaneous accounts receivable	36		33
Inventories	386		373
Current regulatory assets	60		8
Other current assets	79		58
Total current assets	1,192		814
Property, Plant, and Equipment, Net	13,879		12,635
Investments and Other Assets:
Nuclear decommissioning trust fund	982		847

Regulatory assets	347		285
Other assets	383		356
Total investments and other assets	1,712		1,488
TOTAL ASSETS	$	16,783	$	14,937
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Current maturities of long-term debt	$	8	$	92

Short-term debt	—		234
Accounts and wages payable	501		465
Accounts payable – affiliates	46		52
Taxes accrued	42		24
Interest accrued	53		48
Current asset retirement obligations	60		53
Current regulatory liabilities	26		62
Other current liabilities	97		96
Total current liabilities	833		1,126
Long-term Debt, Net	5,096		4,098
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes and investment tax credits, net	1,742		1,612

Regulatory liabilities	3,110		2,937
Asset retirement obligations	691		634
Pension and other postretirement benefits	35		141
Other deferred credits and liabilities	66		40
Total deferred credits and other liabilities	5,644		5,364
Commitments and Contingencies (Notes 2, 9, 13, and 14)
Shareholders’ Equity:
Common stock, $5 par value, 150.0 shares authorized – 102.1 shares outstanding	511		511
Other paid-in capital, principally premium on common stock	2,518		2,027
Preferred stock	80		80
Retained earnings	2,101		1,731
Total shareholders’ equity	5,210		4,349
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	16,783	$	14,937

The accompanying notes as they relate to Ameren Missouri are an integral part of these financial statements.

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UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)

STATEMENT OF CASH FLOWS

(In millions)


	Year Ended December 31,
	2020		2019		2018
Cash Flows From Operating Activities:
Net income	$	439	$	429	$	481
Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization	613		564		533
Amortization of nuclear fuel	68		79		95

Amortization of debt issuance costs and premium/discounts	6		5		6
Deferred income taxes and investment tax credits, net	17		(19)		(9)
Allowance for equity funds used during construction	(19)		(19)		(27)
Other	22		13		17
Changes in assets and liabilities:
Receivables	(8)		75		(32)
Inventories	(11)		(13)		30
Accounts and wages payable	26		16		(21)
Taxes accrued	9		(15)		(1)
Regulatory assets and liabilities	(166)		17		201
Assets, other	(2)		(28)		2
Liabilities, other	(80)		(32)		(13)
Pension and other postretirement benefits	(3)		(5)		(2)


Net cash provided by operating activities	911		1,067		1,260
Cash Flows From Investing Activities:
Capital expenditures	(1,102)		(1,076)		(914)
Wind generation expenditures	(564)		—		—
Nuclear fuel expenditures	(66)		(31)		(52)
Purchases of securities – nuclear decommissioning trust fund	(224)		(256)		(315)
Sales and maturities of securities – nuclear decommissioning trust fund	183		260		299
Purchase of bonds	—		(207)		—
Proceeds from sale of remarketed bonds	—		207		—
Money pool advances, net	(139)		—		—

Other	8		8		6
Net cash used in investing activities	(1,904)		(1,095)		(976)
Cash Flows From Financing Activities:
Dividends on common stock	(66)		(430)		(375)

Dividends on preferred stock	(3)		(3)		(3)
Short-term debt, net	(234)		179		16


Maturities of long-term debt	(92)		(580)		(384)
Issuances of long-term debt	1,012		778		423
Debt issuance costs	(9)		(9)		(5)
Capital contribution from parent	491		124		45

Net cash provided by (used in) financing activities	1,099		59		(283)
Net change in cash, cash equivalents, and restricted cash	106		31		1
Cash, cash equivalents, and restricted cash at beginning of year	39		8		7
Cash, cash equivalents, and restricted cash at end of year	$	145	$	39	$	8



Cash Paid During the Year:
Interest (net of $10, $12, and $14 capitalized, respectively)	$	190	$	190	$	196
Income taxes, net	25		101		128

The accompanying notes as they relate to Ameren Missouri are an integral part of these financial statements.

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UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)

STATEMENT OF SHAREHOLDERS’ EQUITY

(In millions)


	December 31,
	2020		2019		2018
Common Stock	$	511	$	511	$	511

Other Paid-in Capital:
Beginning of year	2,027		1,903		1,858
Capital contribution from parent	491		124		45

Other paid-in capital, end of year	2,518		2,027		1,903




Preferred Stock	80		80		80

Retained Earnings:
Beginning of year	1,731		1,735		1,632
Net income	439		429		481
Dividends on common stock	(66)		(430)		(375)
Dividends on preferred stock	(3)		(3)		(3)
Retained earnings, end of year	2,101		1,731		1,735

Total Shareholders’ Equity	$	5,210	$	4,349	$	4,229

The accompanying notes as they relate to Ameren Missouri are an integral part of these financial statements.

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AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)

STATEMENT OF INCOME

(In millions)


	Year Ended December 31,
	2020		2019		2018
Operating Revenues:
Electric	$	1,775	$	1,730	$	1,761
Natural gas	760		797		815

Total operating revenues	2,535		2,527		2,576
Operating Expenses:
Purchased power	355		368		429
Natural gas purchased for resale	229		278		318
Other operations and maintenance	775		782		799
Depreciation and amortization	434		406		374
Taxes other than income taxes	140		143		144
Total operating expenses	1,933		1,977		2,064
Operating Income	602		550		512



Other Income, Net	59		53		42
Interest Charges	155		147		149
Income Before Income Taxes	506		456		405
Income Taxes	124		110		98
Net Income	382		346		307







Preferred Stock Dividends	3		3		3
Net Income Available to Common Shareholder	$	379	$	343	$	304

The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.

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AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)

BALANCE SHEET

(In millions)


	December 31,
	2020		2019
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	—
Accounts receivable – trade (less allowance for doubtful accounts of $34 and $10, respectively)	234		215
Accounts receivable – affiliates	64		28
Unbilled revenue	136		139
Miscellaneous accounts receivable	12		25
Inventories	135		121
Current regulatory assets	37		57

Other current assets	29		29
Total current assets	647		614
Property, Plant, and Equipment, Net	11,201		10,083
Investments and Other Assets:
Goodwill	411		411
Regulatory assets	742		694
Other assets	534		383
Total investments and other assets	1,687		1,488
TOTAL ASSETS	$	13,535	$	12,185
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:

Short-term debt	$	—	$	53
Borrowings from money pool	19		—
Accounts and wages payable	363		299
Accounts payable – affiliates	51		82


Customer deposits	74		77


Current regulatory liabilities	88		84
Other current liabilities	221		249
Total current liabilities	816		844
Long-term Debt, Net	3,946		3,575
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes and investment tax credits, net	1,367		1,224

Regulatory liabilities	2,063		1,849
Pension and other postretirement benefits	69		214
Environmental remediation	57		87
Other deferred credits and liabilities	251		260
Total deferred credits and other liabilities	3,807		3,634
Commitments and Contingencies (Notes 2, 13, and 14)
Shareholders’ Equity:
Common stock, no par value, 45.0 shares authorized – 25.5 shares outstanding	—		—
Other paid-in capital	2,652		2,188
Preferred stock	62		62
Retained earnings	2,252		1,882

Total shareholders’ equity	4,966		4,132
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	13,535	$	12,185

The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.

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AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)

STATEMENT OF CASH FLOWS

(In millions)


	Year Ended December 31,
	2020		2019		2018
Cash Flows From Operating Activities:
Net income	$	382	$	346	$	307
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	434		405		375
Amortization of debt issuance costs and premium/discounts	12		12		13
Deferred income taxes and investment tax credits, net	118		80		88
Other	8		7		11
Changes in assets and liabilities:
Receivables	(28)		11		—
Inventories	(15)		2		8
Accounts and wages payable	15		(19)		(13)
Taxes accrued	(23)		21		(13)
Regulatory assets and liabilities	(72)		155		1
Assets, other	(76)		(23)		(1)
Liabilities, other	(46)		(5)		(92)
Pension and other postretirement benefits	(30)		(30)		(25)
Net cash provided by operating activities	679		962		659
Cash Flows From Investing Activities:
Capital expenditures	(1,447)		(1,208)		(1,258)

Other	3		3		10
Net cash used in investing activities	(1,444)		(1,205)		(1,248)
Cash Flows From Financing Activities:
Dividends on common stock	(9)		—		—
Dividends on preferred stock	(3)		(3)		(3)
Short-term debt, net	(53)		(19)		10
Money pool borrowings, net	19		—		—

Maturities of long-term debt	—		—		(457)

Issuances of long-term debt	373		299		929
Debt issuance costs	(4)		(4)		(9)


Capital contribution from parent	464		15		160
Other	—		—		(2)
Net cash provided by financing activities	787		288		628
Net change in cash, cash equivalents, and restricted cash	22		45		39
Cash, cash equivalents, and restricted cash at beginning of year	125		80		41
Cash, cash equivalents, and restricted cash at end of year	$	147	$	125	$	80

Cash Paid During the Year:
Interest (net of $6, $8, and $7 capitalized, respectively)	$	137	$	127	$	144
Income taxes, net	41		4		28

The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.

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AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)

STATEMENT OF SHAREHOLDERS’ EQUITY

(In millions)


	December 31,
	2020		2019		2018
Common Stock	$	—	$	—	$	—

Other Paid-in Capital:
Beginning of year	2,188		2,173		2,013
Capital contribution from parent	464		15		160

Other paid-in capital, end of year	2,652		2,188		2,173


Preferred Stock	62		62		62





Retained Earnings:
Beginning of year	1,882		1,539		1,235
Net income	382		346		307
Dividends on common stock	(9)		—		—
Dividends on preferred stock	(3)		(3)		(3)

Retained earnings, end of year	2,252		1,882		1,539







Total Shareholders’ Equity	$	4,966	$	4,132	$	3,774

The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.

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AMEREN CORPORATION (Consolidated)

UNION ELECTRIC COMPANY (d/b/a Ameren Missouri)

AMEREN ILLINOIS COMPANY (d/b/a Ameren Illinois)

COMBINED NOTES TO FINANCIAL STATEMENTS December 31, 2020

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General

Ameren, headquartered in St. Louis, Missouri, is a public utility holding company whose primary assets are its equity interests in its subsidiaries. Ameren’s subsidiaries are separate, independent legal entities with separate businesses, assets, and liabilities. Dividends on Ameren’s common stock and the payment of expenses by Ameren depend on distributions made to it by its subsidiaries. Ameren’s principal subsidiaries are listed below. Ameren also has other subsidiaries that conduct other activities, such as providing shared services.

Union Electric Company, doing business as Ameren Missouri, operates a rate-regulated electric generation, transmission, and distribution business and a rate-regulated natural gas distribution business in Missouri. Ameren Missouri was incorporated in Missouri in 1922 and is successor to a number of companies, the oldest of which was organized in 1881. It is the largest electric utility in the state of Missouri. It supplies electric and natural gas service to a 24,000-square-mile area in central and eastern Missouri, which includes the Greater St. Louis area. Ameren Missouri supplies electric service to 1.2 million customers and natural gas service to 0.1 million customers.
Ameren Illinois Company, doing business as Ameren Illinois, operates rate-regulated electric transmission, electric distribution, and natural gas distribution businesses in Illinois. Ameren Illinois was incorporated in Illinois in 1923 and is the successor to a number of companies, the oldest of which was organized in 1902. Ameren Illinois supplies electric and natural gas utility service to a 43,700 square mile area in central and southern Illinois. Ameren Illinois supplies electric service to 1.2 million customers and natural gas service to 0.8 million customers.
Ameren Transmission Company of Illinois, doing business as ATXI, operates a FERC rate-regulated electric transmission business in the MISO. ATXI was incorporated in Illinois in 2006. In December 2020, ATXI completed construction of the ninth and final line segment of the Illinois Rivers transmission line, a MISO-approved electric transmission line. ATXI also operates the Spoon River and Mark Twain transmission lines, which were placed in service in February 2018 and December 2019, respectively.

The COVID-19 pandemic continues to be a constantly evolving situation. In 2020, we experienced a net decrease in our sales volumes, an increase in our accounts receivable balances that were past due or that were a part of a deferred payment arrangement, and a decline in our cash collections from customers. The continued effect of the COVID-19 pandemic on our results of operations, financial position, and liquidity in subsequent periods will depend on its severity and longevity, future regulatory or legislative actions with respect thereto, and the resulting impact on business, economic, and capital market conditions. Shelter-in-place orders began taking effect in our service territories in mid-March 2020. These orders generally required individuals to remain at home and precluded or limited the operation of businesses that were deemed nonessential. While our business operations were deemed essential and were not directly impacted by the shelter-in-place orders, approximately 65% of our workforce transitioned to remote working arrangements in mid-March 2020. In order to work more effectively in certain areas, a portion of our workforce returned to our work locations in early June 2020 under a phased approach, and, as of the date of this filing, approximately 50% of our workforce continues to work remotely. In mid-May 2020, shelter-in-place orders effective in our service territories began to be relaxed, with fewer restrictions on social activities and nonessential businesses beginning to reopen. However, certain restrictions remain in place that limit individual activities and the operation of nonessential businesses. Additional restrictions may be imposed in the future.

We continue to assess the impacts the pandemic is having on our businesses, including but not limited to impacts on our liquidity; demand for residential, commercial, and industrial electric and natural gas services; changes in deferred payment arrangements for customers; the timing and extent to which recovery of incremental costs incurred, net of savings, and forgone customer late fee revenues at Ameren Missouri is allowed by the MoPSC; changes in our ability to disconnect customers for nonpayment; bad debt expense; supply chain operations; the availability of our employees and contractors; counterparty credit; capital construction; infrastructure operations and maintenance; energy-efficiency programs; and pension valuations. While the revenues from Ameren Illinois’ electric distribution business, residential and small nonresidential customers of Ameren Illinois’ natural gas distribution business, and Ameren Illinois’ and ATXI’s electric transmission businesses are decoupled from changes in sales volumes, changes in sales volumes at Ameren Missouri and those associated with Ameren Illinois’ large nonresidential natural gas customers may affect net income. With respect to uncollectible accounts receivable, Ameren Illinois’ electric distribution and natural gas distribution businesses have bad debt riders, which provide for recovery of bad debt write-offs, net of any subsequent recoveries. Pursuant to a June 2020 ICC order, Ameren Illinois’ electric bad debt rider provided for the recovery of bad debt expense in 2020, which reverted to the recovery of bad debt write-offs, net of any subsequent recoveries, in 2021. Ameren Missouri does not have a bad debt rider or tracker, and thus its earnings are exposed to increases in bad debt expense, absent regulatory relief. However, Ameren Missouri does not expect a material impact to earnings from increases in bad debt expense. In October 2020,

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Ameren Missouri filed requests with the MoPSC for accounting authority orders related to certain impacts resulting from the COVID-19 pandemic. If issued as requested, the orders would allow Ameren Missouri to accumulate certain costs incurred related to the COVID-19 pandemic, including bad debt write-offs, net of cost savings, as well as forgone customer late fee and reconnection fee revenues, for a specified time period, for potential recovery in future electric and natural gas service regulatory rate reviews. Our customers’ payment for our services has been adversely affected by the COVID-19 pandemic, resulting in a decrease to our cash flow from operations. As of December 31, 2020, accounts receivable balances that were 30 days or greater past due or that were a part of a deferred payment arrangement represented 29%, 22%, and 35%, or $133 million, $40 million, and $93 million, of Ameren’s, Ameren Missouri’s, and Ameren Illinois’ customer trade receivables before allowance for doubtful accounts, respectively. As of December 31, 2019, these percentages were 18%, 18%, and 20%, or $75 million, $30 million, and $45 million, for Ameren, Ameren Missouri, and Ameren Illinois, respectively. For information regarding Ameren Missouri’s and Ameren Illinois’ suspension and subsequent reinstatement of customer disconnections and late fee charges for nonpayment and Ameren Missouri’s requests for accounting authority orders related to the COVID-19 pandemic, see Note 2 – Rate and Regulatory Matters below.

The Coronavirus Aid, Relief, and Economic Security Act is a federal law enacted in March 2020. Provisions in the act include temporary changes to the utilization of net operating losses, deferral of the payment of the employer portion of Social Security taxes, and additional funding for customer energy assistance, among other things. As of December 31, 2020, the implementation of the act by the Ameren Companies had no material impact to their financial statements.

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, except as disclosed in Note 13 – Related-party Transactions. Ameren Missouri and Ameren Illinois have no subsidiaries. All tabular dollar amounts are in millions, unless otherwise indicated.

Our accounting policies conform to GAAP. Our financial statements reflect all adjustments (which include normal, recurring adjustments) that are necessary, in our opinion, for a fair presentation of our results. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. Such estimates and assumptions affect reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the dates of financial statements, and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates.

Regulation

Our customer rates are regulated by the MoPSC, the ICC, and the FERC. We defer certain costs as assets pursuant to actions of rate regulators or because of expectations that we will be able to recover such costs in future rates charged to customers. We also defer certain amounts as liabilities pursuant to actions of rate regulators or based on the expectation that such amounts will be returned to customers in future rates. Regulatory assets and liabilities are amortized consistent with the period of expected regulatory treatment. See Note 2 – Rate and Regulatory Matters for additional information on our regulatory frameworks, regulatory recovery mechanisms, and regulatory assets and liabilities recorded at December 31, 2020 and 2019.

We continually assess the recoverability of our respective regulatory assets. Regulatory assets are charged to earnings when it is no longer probable that such amounts will be recovered through future revenues. To the extent that reductions in customers’ rates or refunds to customers related to regulatory liabilities are no longer probable, the amounts are credited to earnings.

Cash, Cash Equivalents, and Restricted Cash

Cash and cash equivalents include short-term, highly liquid investments purchased with an original maturity of three months or less. Cash and cash equivalents subject to legal or contractual restrictions and not readily available for use for general corporate purposes are classified as restricted cash. See Note 15 – Supplemental Information for a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheets and the statements of cash flows.

Allowance for Doubtful Accounts Receivable

The allowance for doubtful accounts represents our estimate of existing accounts receivable that will ultimately be uncollectible. The allowance is calculated by applying estimated loss factors to various classes of outstanding receivables, including unbilled revenue. The loss factors used to estimate uncollectible accounts are based upon both historical collections experience and management’s estimate of future collections success given the existing and anticipated future collections environment. Ameren Illinois has bad debt riders that adjust rates for net write-offs of customer accounts receivable above or below those being collected in rates. In 2020, the rider for electric distribution allowed for recovery of bad debt expense recognized under GAAP. See Note 2 – Rate and Regulatory Matters for additional information.

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Inventories

Inventories are recorded at the lower of weighted-average cost or net realizable value. Inventories are capitalized when purchased and then expensed as consumed or capitalized as property, plant, and equipment when installed, as appropriate. See Note 15 – Supplemental Information for the components of inventories.

Property, Plant, and Equipment, Net

We capitalize the cost of additions to, and betterments of, units of property, plant, and equipment. The cost includes labor, material, applicable taxes, and overhead. An allowance for funds used during construction, as discussed below, is also capitalized as a cost of our rate-regulated assets. Maintenance expenditures are expensed as incurred. Beginning in 2020, maintenance expenses related to scheduled Callaway nuclear refueling and maintenance outages, which were previously expensed as incurred, are deferred and amortized over the number of expected months until the completion of the next refueling outage, which historically has been approximately 18 months. When units of depreciable property are retired, the original costs, and the associated removal cost, net of salvage, are charged to accumulated depreciation. If environmental expenditures are related to assets currently in use, as in the case of the installation of pollution control equipment, the cost is capitalized and depreciated over the expected life of the asset. See Asset Retirement Obligations section below and Note 3 – Property, Plant, and Equipment, Net for additional information.

Ameren Missouri’s cost of nuclear fuel is capitalized as a part of “Property, Plant, and Equipment, Net” on the balance sheet and then amortized to “Operating Expenses – Fuel” in the statement of income on a unit-of-production basis.

Depreciation

Depreciation is provided over the estimated lives of the various classes of depreciable property by applying composite rates on a straight-line basis to the cost basis of such property. The composite rates include a provision for the estimated removal cost of property, plant, and equipment retired from service, net of salvage. The provision for depreciation for the Ameren Companies in 2020, 2019, and 2018 ranged from 3% to 4% of the average depreciable cost. See Note 3 – Property, Plant, and Equipment, Net for additional information on estimated depreciable lives.

Allowance for Funds Used During Construction

As a part of “Property, Plant, and Equipment, Net” on the balance sheet, we capitalize allowance for funds used during construction, which is the cost of borrowed funds and the cost of equity funds (preferred and common shareholders’ equity) applicable to eligible rate-regulated construction work in progress, in accordance with the utility industry’s accounting practice and GAAP. The amount of allowance for funds used during construction is calculated using a FERC-prescribed formula based on a rate, which incorporates the average cost of short-term debt, the average cost of long-term debt, and the cost of equity funds. The portion attributable to borrowed funds is recorded as a reduction of “Interest Charges” on the statements of income. The portion attributable to equity funds is recorded within “Other Income, Net” on the statements of income. This accounting practice offsets the effect on earnings of the cost of financing during construction. See Note 15 – Supplemental Information for the amount of allowance for funds used during construction capitalized and the average rate applied to eligible construction work in progress.

Allowance for funds used during construction does not represent a current source of cash funds. Under accepted ratemaking practice, cash recovery of allowance for funds used during construction and other construction costs occurs when completed projects are placed in service and reflected in customer rates.

Goodwill

Goodwill represents the excess of the purchase price of an acquisition over the fair value of the net assets acquired. Ameren and Ameren Illinois had goodwill of $411 million at December 31, 2020 and 2019. Ameren has four reporting units: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. Ameren Illinois has three reporting units: Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Illinois Transmission. Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Illinois Transmission had goodwill of $238 million, $80 million, and $93 million, respectively, at December 31, 2020 and 2019. The Ameren Transmission reporting unit had the same $93 million of goodwill as the Ameren Illinois Transmission reporting unit at December 31, 2020 and 2019.

Ameren and Ameren Illinois evaluate goodwill for impairment in each of their reporting units as of October 31 each year, or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of their reporting units below their carrying amounts. To determine whether the fair value of a reporting unit is more likely than not greater than its carrying amount, Ameren and Ameren Illinois elect to perform either a qualitative assessment or to bypass the qualitative assessment and perform a quantitative test.

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Ameren and Ameren Illinois elected to perform a qualitative assessment for their annual goodwill impairment test conducted as of October 31, 2020. As part of this qualitative assessment, Ameren and Ameren Illinois evaluated, among other things, macroeconomic conditions, industry and market considerations such as observable industry market multiples, regulatory frameworks, cost factors, overall financial performance, and entity-specific events. The results of Ameren’s and Ameren Illinois’ qualitative assessment indicated that it was more likely than not that the fair value of each reporting unit exceeded its carrying value as of October 31, 2020, resulting in no impairment of Ameren’s or Ameren Illinois’ goodwill.

Impairment of Long-lived Assets

We evaluate long-lived assets classified as held and used for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Whether an impairment has occurred is determined by comparing the estimated undiscounted cash flows attributable to the assets to the carrying value of the assets. If the carrying value exceeds the undiscounted cash flows, we recognize an impairment charge equal to the amount by which the carrying value exceeds the estimated fair value of the assets. In the period in which we determine that an asset meets held for sale criteria, we record an impairment charge to the extent the book value exceeds its estimated fair value less cost to sell. We did not identify any events or changes in circumstances that indicated that the carrying value of long-lived assets may not be recoverable in 2020 or 2019.

Variable Interest Entities

As of December 31, 2020 and 2019, Ameren had unconsolidated variable interests as a limited partner in various equity method investments, totaling $37 million and $28 million, respectively, included in “Other assets” on Ameren’s consolidated balance sheet. Ameren is not the primary beneficiary of these investments because it does not have the power to direct matters that most significantly affect the activities of these variable interest entities. As of December 31, 2020, the maximum exposure to loss related to these variable interest entities is limited to the investment in these partnerships of $37 million plus associated outstanding funding commitments of $35 million.

Environmental Costs

Liabilities for environmental costs are recorded on an undiscounted basis when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Costs are expensed or deferred as a regulatory asset when it is expected that the costs will be recovered from customers in future rates. See Note 14 – Commitments and Contingencies for additional information on liabilities for environmental costs.

Asset Retirement Obligations

We record the estimated fair value of legal obligations associated with the retirement of tangible long-lived assets in the period in which the liabilities are incurred and capitalize a corresponding amount as part of the book value of the related long-lived asset. In subsequent periods, we adjust AROs for accretion and changes in the estimated fair values of the obligations, with a corresponding increase or decrease in the asset book value for the fair value changes. Asset book values, reflected within “Property, Plant, and Equipment, Net” on the balance sheet, are depreciated over the remaining useful life of the related asset. Due to regulatory recovery, that depreciation is deferred as a regulatory balance. The depreciation of the asset book values at Ameren Missouri was $28 million, $18 million, and $14 million for the years ended December 31, 2020, 2019, and 2018, respectively, which was deferred as a reduction to the net regulatory liability. The net regulatory liability also reflects a deferral for the nuclear decommissioning trust fund balance for the Callaway Energy Center. The depreciation deferred to the regulatory asset at Ameren Illinois was immaterial in each respective period. Uncertainties as to the probability, timing, or amount of cash expenditures associated with AROs affect our estimates of fair value. Ameren and Ameren Missouri have recorded AROs for retirement costs associated with decommissioning of Ameren Missouri’s Callaway and High Prairie Renewable energy centers, CCR facilities, and river structures. Additionally, Ameren, Ameren Missouri, and Ameren Illinois have recorded AROs for retirement costs associated with asbestos removal and the disposal of certain transformers. See Note 15 – Supplemental Information for a reconciliation of the beginning and ending carrying amounts of AROs.

Estimated funds collected from customers to pay for the future removal cost of property, plant, and equipment retired from service, net of salvage, represent a cost of removal regulatory liability. See the cost of removal regulatory liability balance in Note 2 – Rate and Regulatory Matters.

Company-owned Life Insurance

Ameren and Ameren Illinois have company-owned life insurance, which is recorded at the net cash surrender value. The net cash surrender value is the amount that can be realized under the insurance policies at the balance sheet date. As of December 31, 2020, the cash surrender value of company-owned life insurance at Ameren and Ameren Illinois was $272 million (December 31, 2019 – $264 million) and $115 million (December 31, 2019 – $123 million), respectively, while total borrowings against the policies were $107 million (December 31, 2019 – $114 million) at both Ameren and Ameren Illinois. Ameren and Ameren Illinois have the right to offset the borrowings

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against the cash surrender value of the policies and, consequently, present the net asset in “Other assets” on their respective balance sheets. The net cash surrender value of Ameren’s company-owned life insurance is affected by the investment performance of a separate account in which Ameren holds a beneficial interest.

Operating Revenues

We record revenues from contracts with customers for various electric and natural gas services, which primarily consist of retail distribution, electric transmission, and off-system arrangements. When more than one performance obligation exists in a contract, the consideration under the contract is allocated to the performance obligations based on the relative standalone selling price.

Electric and natural gas retail distribution revenues are earned when the commodity is delivered to our customers. We accrue an estimate of electric and natural gas retail distribution revenues for service provided but unbilled at the end of each accounting period. Electric transmission revenues are earned as electric transmission services are provided. Off-system revenues are primarily comprised of MISO revenues and wholesale bilateral revenues. MISO revenues include the sale of electricity, capacity, and ancillary services. Wholesale bilateral revenues include the sale of electricity and capacity. MISO-related electricity and wholesale bilateral electricity revenues are earned as electricity is delivered. Capacity and ancillary service revenues are earned as services are provided.

Retail distribution, electric transmission, and off-system revenues, including the underlying components described above, represent a series of goods or services that are substantially the same and have the same pattern of transfer over time to our customers. Revenues from contracts with customers are equal to the amounts billed and our estimate of electric and natural gas retail distribution services provided but unbilled at the end of each accounting period. Customers are billed at least monthly, and payments are due less than one month after goods and/or services are provided. See Note 16 – Segment Information for disaggregated revenue information.

For certain regulatory recovery mechanisms that are alternative revenue programs rather than revenues from contracts with customers, we recognize revenues that have been authorized for rate recovery, are objectively determinable and probable of recovery, and are expected to be collected from customers within two years from the end of the year. Our alternative revenue programs include revenue requirement reconciliations, the MEEIA, the VBA, and the DCA. These revenues are subsequently recognized as revenues from contracts with customers when billed, with an offset to alternative revenue program revenues.

As of December 31, 2020 and 2019, our remaining performance obligations were immaterial. The Ameren Companies elected not to disclose the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied as of the end of the reporting period for contracts with an initial expected term of one year or less.

Accounting for MISO Transactions

MISO-related purchase and sale transactions are recorded by Ameren, Ameren Missouri, and Ameren Illinois using settlement information provided by the MISO. Ameren Missouri records these purchase and sale transactions on a net hourly position. Ameren Missouri records net purchases in a single hour in “Operating Expenses – Purchased power” and net sales in a single hour in “Operating Revenues – Electric” in its statement of income. Ameren Illinois records net purchases in “Operating Expenses – Purchased power” in its statement of income to reflect all of its MISO transactions relating to the procurement of power for its customers. On occasion, Ameren Missouri’s and Ameren Illinois’ prior-period transactions will be resettled outside the routine settlement process because of a change in the MISO’s tariff or a material interpretation thereof. In these cases, Ameren Missouri and Ameren Illinois recognize revenues and expenses associated with resettlements once the resettlement is probable and the resettlement amount can be estimated. There were no material MISO resettlements in 2020, 2019, or 2018.

Stock-based Compensation

Stock-based compensation cost is measured at the grant date based on the fair value of the award, net of an assumed forfeiture rate. Ameren recognizes as compensation expense the estimated fair value of stock-based compensation on a straight-line basis over the requisite vesting period. See Note 11 – Stock-based Compensation for additional information.

Unamortized Debt Discounts, Premiums, and Issuance Costs

Long-term debt discounts, premiums, and issuance costs are amortized over the lives of the related issuances. Credit agreement fees are amortized over the term of the agreement.

Income Taxes

Ameren uses an asset and liability approach for its financial accounting and reporting of income taxes. Deferred tax assets and liabilities are recognized for transactions that are treated differently for financial reporting and income tax return purposes. These deferred tax assets and liabilities are based on statutory tax rates.

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We expect that regulators will reduce future revenues for deferred tax liabilities that were initially recorded at rates in excess of the current statutory rate. Therefore, reductions in certain deferred tax liabilities that were recorded because of decreases in the statutory rate have been credited to a regulatory liability. A regulatory asset has been established to recognize the probable recovery through future customer rates of tax benefits related to the equity component of allowance for funds used during construction, as well as the effects of tax rate increases. To the extent deferred tax balances are included in rate base, the revaluation of deferred taxes is recorded as a regulatory asset or liability on the balance sheet and will be collected from, or refunded to, customers. For deferred tax balances not included in rate base, the revaluation of deferred taxes is recorded as an adjustment to income tax expense on the income statement. See Note 12 – Income Taxes for further information regarding the revaluation of deferred taxes related to Missouri state corporate income tax rate changes.

Ameren Missouri, Ameren Illinois, and all the other Ameren subsidiary companies are parties to a tax allocation agreement with Ameren (parent) that provides for the allocation of consolidated tax liabilities. The tax allocation agreement specifies that each party be allocated an amount of tax using a stand-alone calculation, which is similar to what would be owed or refunded had the party been separately subject to tax without considering the impact of consolidation. Any net benefit attributable to Ameren (parent) is reallocated to the other parties. This reallocation is treated as a capital contribution to the party receiving the benefit. See Note 13 – Related-party Transactions for information regarding capital contributions under the tax allocation agreement.

Accounting Changes and Other Matters

In the first quarter of 2020, the Ameren Companies adopted authoritative accounting guidance that requires credit losses on most financial assets carried at amortized cost and off-balance sheet credit exposures, such as financial guarantees or loan commitments, to be measured using a current expected credit loss (CECL) model. The guidance requires an entity to measure expected credit losses using relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. In addition, the guidance made certain changes to the impairment model applicable to available-for-sale debt securities, such as requiring credit losses to be presented as an allowance rather than a write-down on impaired debt securities for which there is neither an intent nor a more-likely-than-not requirement to sell. Our adoption of this guidance did not have a material impact on the Ameren Companies’ financial statements and did not result in a cumulative effect adjustment to retained earnings as of the adoption date. See Note 15 – Supplemental Information for additional information regarding credit losses on accounts receivable.

In the first quarter of 2020, the Ameren Companies adopted authoritative accounting guidance that altered certain disclosure requirements in relation to fair value measurements. See Note 8 – Fair Value Measurements for our fair value measurement disclosures.

In the fourth quarter of 2020, the Ameren Companies adopted authoritative accounting guidance that altered certain disclosure requirements in relation to defined benefit plans. See Note 10 – Retirement Benefits for our defined benefit plan disclosures.

NOTE 2 – RATE AND REGULATORY MATTERS

Below is a summary of our regulatory frameworks and significant regulatory proceedings and related lawsuits. We are unable to predict the ultimate outcome of these matters, the timing of final decisions of the various agencies and courts, or the effect on our results of operations, financial position, or liquidity.

Regulatory Frameworks

Missouri

The MoPSC regulates rates and other matters for Ameren Missouri’s electric service and natural gas distribution businesses. The rates Ameren Missouri charges customers for these services are established in a traditional regulatory rate review, which takes up to 11 months to complete, based on a historical test year and the allowed ROE established in the review.

Ameren Missouri has recovery mechanisms, including the RESRAM, FAC, MEEIA, PGA, DCA, and ISRS, that allow customer rates to be adjusted without a traditional regulatory rate review. These riders, along with the PISA, each described in more detail below, partially mitigate the effects of regulatory lag. Ameren Missouri also employs other recovery mechanisms, including a pension and postretirement benefit cost tracker, an uncertain income tax position tracker, a tracker on certain excess deferred income taxes, a renewable energy standard cost tracker, and a solar rebate program cost tracker. Each of these trackers allows Ameren Missouri to defer the difference between actual costs incurred and costs included in customer rates as a regulatory asset or regulatory liability. The difference will be reflected in base rates in a subsequent MoPSC rate order. Ameren Missouri’s cost recovery under any of its recovery mechanisms is subject to MoPSC prudence reviews.

The PISA permits Ameren Missouri to defer and recover 85% of the depreciation expense and earn a return at the applicable WACC on investments in certain property, plant, and equipment placed in service after September 1, 2018, and not included in base rates. The regulatory asset for accumulated PISA deferrals also earns a return at the applicable WACC, with all approved PISA deferrals added to rate

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base prospectively and recovered over a period of 20 years following a regulatory rate review. Additionally, under the RESRAM, Ameren Missouri is permitted to recover the 15% of depreciation expense not recovered under the PISA, and earn a return at the applicable WACC for investments in renewable generation plant placed in service. The deferrals are a regulatory asset until they are included in customer rates and collected in a subsequent period. Those investments not eligible for recovery under the PISA and the remaining 15% of certain property, plant, and equipment placed in service, unless eligible for recovery under the RESRAM, remain subject to regulatory lag. Ameren Missouri recognizes the cost of debt on PISA deferrals in revenue, instead of using the applicable WACC, with the difference recognized in revenues when recovery of such deferrals is reflected in customer rates. Under Missouri law, as a result of the PISA election, additional provisions apply to Ameren Missouri, including limitations on electric customer rate increases. If rate changes from the FAC or the RESRAM riders would cause rates to temporarily exceed the 2.85% rate cap, the overage would be deferred for future recovery in the next regulatory rate review; however, rates established in such regulatory rate review would be subject to the rate cap. Any deferred overages approved for recovery would be recovered in a manner consistent with costs recovered under the PISA. Excluding customer rates under the MEEIA rider, which are not subject to the rate cap, Ameren Missouri would incur a penalty equal to the amount of deferred overage that would cause customer rates to exceed the 2.85% rate cap. Ameren Missouri did not incur a penalty related to the rate cap in 2020. Both the rate increase limitation and the PISA are effective through December 2023. Missouri law provides for the ability to use the PISA, if Ameren Missouri requests and receives MoPSC approval for extension, through December 2028.

The RESRAM permits Ameren Missouri to recover or refund, through customer rates, the difference between the cost of compliance with Missouri’s renewable energy standard and the amount set in base rates. Customer rates are adjusted for the RESRAM on an annual basis without a traditional regulatory rate review, subject to MoPSC prudence reviews. The difference between actual compliance costs and costs billed to customers in a given period is deferred as a regulatory asset or liability. The deferred amount is either billed or refunded to customers in a subsequent period. RESRAM regulatory assets earn carrying costs at short-term interest rates. The RESRAM permits Ameren Missouri to recover investments in wind generation and other renewables related to compliance with Missouri’s renewable energy standard, and earn a return at the applicable WACC on those investments not already provided for in customer rates or any other recovery mechanism.

The FAC permits Ameren Missouri to recover or refund, through customer rates, 95% of the variance in net energy costs from the amount set in base rates without a traditional regulatory rate review, subject to MoPSC prudence reviews, with the remaining 5% of changes retained by Ameren Missouri. Net recovery of these costs through customer rates does not affect Ameren Missouri’s electric margins, as any change in revenue is offset by a corresponding change in fuel expense. The difference between actual net energy costs and costs billed to customers in a given period is deferred as a regulatory asset or liability. The deferred amount is either billed or refunded to customers in a subsequent period. FAC regulatory assets earn carrying costs at short-term interest rates. Ameren Missouri’s base rates for electric service are required to be reset at least every four years to allow for continued use of the FAC.

The MEEIA permits Ameren Missouri to recover customer energy-efficiency program costs, the related lost electric margins, and any performance incentive through the MEEIA without a traditional regulatory rate review. MEEIA assets earn carrying costs at short-term interest rates.

Ameren Missouri is a member of the MISO, and its transmission rate is calculated in accordance with the MISO Open Access Transmission, Energy, and Operating Reserve Markets Tariff. The FERC regulates the rates charged and the terms and conditions for wholesale electric transmission service. The transmission rate update each June is based on Ameren Missouri’s actual historical cost from the prior calendar year. This rate is not directly charged to Missouri retail customers because, in Missouri, bundled retail rates include an amount for transmission-related costs and revenues.

The PGA allows Ameren Missouri to recover prudently incurred costs of natural gas purchased on behalf of its customers without a traditional regulatory rate review. These pass-through purchased gas costs do not affect Ameren Missouri’s natural gas margins, as any change in costs is offset by a corresponding change in revenues. The difference between actual natural gas costs and costs billed to customers in a given period is deferred as a regulatory asset or liability. The deferred amount is either billed or refunded to customers in a subsequent period. PGA regulatory assets earn carrying costs at short-term interest rates. The DCA ensures recoverability of the natural gas delivery service revenue requirement that is dependent on sales volumes for nearly all customers. The DCA allows Ameren Missouri to adjust natural gas delivery service rates without a traditional regulatory rate review when changes occur in sales volumes from those volumes approved by the MoPSC in the previous regulatory rate review. The difference between actual gas delivery service revenues billed to customers and revenues approved by the MoPSC in a given period is deferred as a regulatory asset or liability. DCA regulatory assets earn carrying costs at short-term interest rates. The deferred amount is either billed or refunded to customers in a subsequent period. In addition, the ISRS permits certain prudently incurred natural gas infrastructure replacement costs to be recovered from customers on a more timely basis between regulatory rate reviews. The ROE currently used by Ameren Missouri for purposes of the ISRS tariff is 9.725%.

Illinois

The ICC regulates rates and other matters for Ameren Illinois’ electric distribution service and natural gas distribution businesses. The

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rates Ameren Illinois charges customers for electric distribution service are calculated under a performance-based formula ratemaking framework. The rates Ameren Illinois charges customers for natural gas distribution service are established in a traditional regulatory rate review, which takes up to 11 months to complete, based on a future test year and an allowed ROE established in the review.

Ameren Illinois’ election to use the electric distribution service performance-based formula ratemaking framework allowed by state law, described below, permits Ameren Illinois to adjust customer rates to recover the cost of electric distribution service on an annual basis. Ameren Illinois’ electric distribution service also has other cost recovery mechanisms in place that allow customer rates to be adjusted without a traditional regulatory rate review. Ameren Illinois’ electric distribution service business has riders for power procurement and transmission services incurred on behalf of its customers, renewable energy credit compliance, zero emission credits, and certain environmental costs, as well as bad debt write-offs and the costs of certain asbestos-related claims not recovered in base rates. These pass-through costs do not affect Ameren Illinois’ net income, as any change in costs is offset by a corresponding change in revenues. Ameren Illinois’ cost recovery under any of its recovery mechanisms is subject to ICC prudence reviews.

Ameren Illinois’ electric distribution service performance-based formula ratemaking framework allows Ameren Illinois to reconcile electric distribution service rates to its actual revenue requirement on an annual basis. If a given year’s revenue requirement varies from the amount collected from customers, an adjustment is made to electric operating revenues with an offset to a regulatory asset or liability to reflect that year’s actual revenue requirement, independent of actual sales volumes. The regulatory balance is then collected from, or refunded to, customers within two years from the end of the year. In addition, Ameren Illinois’ electric customer energy-efficiency rider provides Ameren Illinois’ electric distribution service business with recovery of, and return on, energy-efficiency investments. Under formula ratemaking for both its electric distribution service and its electric energy-efficiency investments, the revenue requirements are based on recoverable costs, year-end rate base, and a year-end ratemaking capital structure, and earn a return at the applicable WACC. The ROE component of the applicable WACC is based on the annual average of the monthly yields of the 30-year United States Treasury bonds plus 580 basis points and any performance-related basis point adjustments, described in more detail below. Therefore, Ameren Illinois’ annual ROE for its electric distribution business is directly correlated to the yields on such bonds. In addition, regulatory assets applicable to formula ratemaking for both electric distribution service and electric energy-efficiency investments earn a return at the applicable WACC. However, Ameren Illinois recognizes the cost of debt on these regulatory assets in revenue, instead of the applicable WACC, with the difference recognized in revenues when recovery of such regulatory assets is reflected in customer rates.

Unless extended, the performance-based formula ratemaking framework expires at the end of 2022. If not extended, Ameren Illinois would be required to establish future rates through a traditional regulatory rate review, which would allow the use of a future test year, with the ICC. The decoupling provisions extend beyond the end of the formula ratemaking by law, which ensures that Ameren Illinois’ electric distribution revenues authorized in a regulatory rate review are not affected by changes in sales volumes. See below for information regarding a request filed by Ameren Illinois to continue reconciling electric distribution service rates to the last annual revenue requirement approved by the ICC under the formula ratemaking framework after the framework expires or is no longer elected.

Ameren Illinois electric distribution service business is also subject to performance standards. Failure to achieve the standards would result in a reduction in the company’s allowed ROE calculated under the formulas. The performance standards applicable to electric distribution service include improvements in service reliability to reduce both the frequency and duration of outages, a reduction in the number of estimated bills, a reduction of consumption from inactive meters, and a reduction in bad debt expense. The electric distribution service regulatory framework provides for ROE penalties up to 38 basis points annually in 2021 and 2022 if these performance standards are not met. The allowed ROE on energy-efficiency investments can be increased or decreased up to 200 basis points, depending on the achievement of annual energy savings goals. Any adjustments to the allowed ROE for energy-efficiency investments will depend on annual performance for a historical period relative to energy savings goals. In 2020, 2019, and 2018, there were no performance-related basis point adjustments that materially affected financial results.

Ameren Illinois’ natural gas distribution business has recovery mechanisms, including the QIP, PGA, and VBA, that allow customer rates to be adjusted without a traditional regulatory rate review. These riders, described in more detail below, mitigate the effects of regulatory lag. Ameren Illinois employs other riders for natural gas customer energy-efficiency program costs and certain environmental costs, as well as bad debt expenses and invested capital taxes not recovered in base rates. Pass-through costs under the riders do not affect Ameren Illinois’ net income, as any change in costs is offset by a corresponding change in revenues. Ameren Illinois’ cost recovery under any of its recovery mechanisms is subject to ICC prudence reviews.

The QIP provides Ameren Illinois with recovery of, and a return on, qualifying natural gas infrastructure investments that are placed in service between regulatory rate reviews. Infrastructure investments under the QIP earn a return at the applicable WACC. Eligible natural gas investments include projects to improve safety and reliability and modernization investments, such as smart meters. The deferrals are a regulatory asset until they are included in customer rates in a subsequent period. Recovery of the regulatory asset begins two months after the qualifying natural gas plant is placed in service and continues until such plant is included in base rates in a natural gas delivery service rate order. Ameren Illinois’ QIP is subject to a rate impact limitation of a cumulative 4% per year since the most recent delivery service rate order, with no single year exceeding 5.5%. If the rate impact limitation was met in a particular year, the amount of rate base causing the QIP

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rate to exceed the limitation would be exposed to regulatory lag until a year when that amount could be recovered under QIP or is added to rate base as a part of a regulatory rate review. Upon issuance of a natural gas delivery service rate order, QIP rate base is transferred to base rates and the QIP is reset to zero, which mitigates the risk that the QIP will exceed its statutory limitations in future years and ensures timely recovery of capital investments. Without legislative action, the QIP will sunset after December 2023.

The PGA allows Ameren Illinois to recover prudently incurred costs of natural gas purchased on behalf of its customers without a traditional regulatory rate review. These pass-through purchased gas costs do not affect Ameren Illinois natural gas margins, as any change in costs is offset by a corresponding change in revenues. The difference between actual natural gas costs and costs billed to customers in a given period is deferred as a regulatory asset or liability. The deferred amount is either billed or refunded to customers in a subsequent period. PGA regulatory assets earn carrying costs at short-term interest rates. The VBA ensures recoverability of the natural gas distribution service revenue requirement that is dependent on sales volumes for residential and small nonresidential customers. For these rate classes, the VBA allows Ameren Illinois to adjust natural gas distribution service rates without a traditional regulatory rate review when changes occur in sales volumes from those volumes approved by the ICC in a previous regulatory rate review. The difference between allowed sales revenues and amounts billed to customers in a given period is deferred as a regulatory asset or liability. The deferred amount is collected from, or refunded to, customers in a subsequent period. VBA regulatory assets for a given year that are not fully collected by the end of the following year begin earning carrying costs at short-term interest rates.

Federal

The FERC regulates rates and other matters for Ameren Illinois’ transmission business and ATXI, as well as for Ameren Missouri. See discussion above related to Ameren Missouri. Both Ameren Illinois and ATXI are members of the MISO, and their transmission rates are calculated in accordance with the MISO Open Access Transmission, Energy, and Operating Reserve Markets Tariff. Ameren Illinois and ATXI have received FERC approval to use a company-specific, forward-looking formula ratemaking framework in setting their transmission rates. These forward-looking rates are updated annually and become effective each January with forecasted information. The formula rate framework provides for an annual reconciliation of the electric transmission service revenue requirement, which reflects the actual recoverable costs incurred and the 13-month average rate base for a given year, with the revenue requirement in customer rates, including an allowed ROE. If a given year’s revenue requirement varies from the amount collected from customers, an adjustment is made to electric operating revenues with an offset to a regulatory asset or liability to reflect that year’s actual revenue requirement, independent of actual sales volumes. The regulatory balance is collected from, or refunded to, customers within two years from the end of the year. FERC revenue requirement reconciliation adjustment regulatory assets earn carrying costs at each company’s short-term interest rates, while each company incurs interest at a FERC-prescribed rate on related regulatory liabilities. In addition, the FERC has approved transmission rate incentives, including a 50 basis point incentive adder to the allowed base ROE for Ameren Illinois and ATXI for participation in an RTO.

Proceedings and Updates

Missouri

March 2020 MoPSC Electric Rate Order

In March 2020, the MoPSC issued an order in Ameren Missouri’s July 2019 electric service regulatory rate review, approving nonunanimous stipulation and agreements. The order resulted in a decrease of $32 million to Ameren Missouri’s annual revenue requirement for electric retail service, which reflected infrastructure investments as of December 31, 2019. The order also provided for the continued use of the FAC and trackers for pension and postretirement benefits, uncertain income tax positions, and certain excess deferred income taxes that the MoPSC previously authorized in earlier electric rate orders. The order reduced the annualized base level of net energy costs pursuant to the FAC by approximately $115 million from the base level established in the MoPSC’s March 2017 electric rate order. The order also changed the annualized regulatory asset and liability amortization amounts and the base level of expenses for trackers. On an annualized basis, these changes reflect approximately $20 million of increased revenues and approximate decreases in purchased power expenses of $15 million, other operating and maintenance expenses of $60 million, and income tax expenses of $20 million. Additionally, the annual revenue requirement incorporated increases of approximately $50 million for the reduction in sales volumes resulting from MEEIA programs and approximately $50 million of depreciation and amortization expense for amounts previously deferred under PISA. The increase in the annual revenue requirement related to the MEEIA programs is seasonally weighted to the summer. One of the stipulation and agreements approved by the MoPSC’s March 2020 order states that the net impact of the revenue and expense changes noted above reflects a 9.4% to 9.8% ROE on an unspecified percent of common equity applicable to rate base. In addition, the order required Ameren Missouri to donate $8 million to low-income assistance programs, which was reflected in results of operations in the first quarter of 2020. The new rates, base level of expenses, and amortizations became effective on April 1, 2020. In April 2020, the MoPSC issued another order in Ameren Missouri’s July 2019 electric service regulatory rate review, reaffirming the existing percentage of net energy cost variances allowed to be recovered or refunded under the FAC.

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Wind Generation Facilities

In December 2020, Ameren Missouri acquired a 400-MW wind generation project located in northeastern Missouri for approximately $615 million, and placed the assets in service as the High Prairie Renewable Energy Center. The purchase price included $564 million of cash, a deferred purchase price obligation withheld as credit support in relation to certain potential claims, contingent consideration, and transaction costs. In January 2021, Ameren Missouri acquired an up-to 300-MW wind generation project located in northwestern Missouri. At the date of this filing, Ameren Missouri placed 120 MWs in service as the Atchison Renewable Energy Center, with a purchase price of approximately $200 million, including transaction costs. There have been changes to the schedule for this project, particularly as a result of component delivery delays. Ameren Missouri expects approximately 150 MWs of the up-to 300-MW project to be in service by the end of the first quarter of 2021, and the remaining portion to be in service later in 2021. Both renewable energy centers are expected to support Ameren Missouri’s compliance with the Missouri renewable energy standard.

MEEIA

In August 2020, the MoPSC issued an order approving a unanimous stipulation and agreement with respect to the 2022 program year of Ameren Missouri’s six-year MEEIA 2019 program. The order established performance incentives that would provide Ameren Missouri an opportunity to earn additional revenues, including $11 million if Ameren Missouri achieves certain energy-efficiency goals during the 2022 program year and an additional $1 million if Ameren Missouri exceeds its targeted energy-efficiency goals. Ameren Missouri intends to invest $70 million in energy-efficiency programs during the 2022 program year. The August 2020 order also approved Ameren Missouri’s energy savings results for the first year of the MEEIA 2019 program. As a result of this order and in accordance with revenue recognition guidance, Ameren Missouri recognized revenues of $6 million during 2020. As a result of MoPSC orders issued in September 2017, October 2018, January 2019, and September 2019 related to performance incentives for the MEEIA 2013 and MEEIA 2016 programs, and in accordance with revenue recognition guidance, Ameren Missouri recognized revenues of $37 million and $11 million during 2019 and 2018, respectively.

Requests for Accounting Authority Orders Related to COVID-19 Pandemic Costs

Ameren Missouri suspended disconnections for customer nonpayment and late fees in mid-March 2020, and resumed those activities for commercial and industrial customers in mid-July 2020 and residential customers in early August 2020. In October 2020, Ameren Missouri filed requests with the MoPSC for accounting authority orders related to its electric and natural gas services. If issued as requested, the orders would allow Ameren Missouri to accumulate certain costs incurred related to the COVID-19 pandemic, including bad debt write-offs, net of cost savings, as well as forgone customer late fee and reconnection fee revenues, for a specified time period, for potential recovery in future electric and natural gas service regulatory rate reviews. Costs incurred, net of savings, and forgone customer late fee and reconnection fee revenues related to the COVID-19 pandemic from March 2020 through December 2020 were immaterial. The MoPSC is under no deadline to issue orders, and Ameren Missouri cannot predict the ultimate outcome of these regulatory proceedings.

Illinois

Electric Distribution Service Rates

In December 2020, the ICC issued an order in Ameren Illinois’ annual update filing that approved a $49 million decrease in Ameren Illinois’ electric distribution service rates beginning in January 2021. This order reflected a decrease to the annual formula rate based on 2019 actual costs, a decrease to include the 2019 revenue requirement reconciliation adjustment, and a decrease for the conclusion of the 2018 revenue requirement reconciliation adjustment, which was fully collected from customers in 2020, consistent with the ICC’s December 2019 annual update filing order. It also reflected an increase based on expected net plant additions for 2020.

Request to Continue Electric Distribution Service Rate Reconciliation

In April 2020, Ameren Illinois filed a request with the ICC, which, if approved, would allow Ameren Illinois to continue to reconcile electric distribution service rates to the last annual revenue requirement approved by the ICC under the performance-based formula ratemaking framework, for a period of up to two years after the framework expires or is no longer elected. Ameren Illinois expects a decision by the ICC in March 2021.

Electric Customer Energy-Efficiency Investments

In May 2020, Ameren Illinois filed its annual electric customer energy-efficiency formula rate update to establish the revenue requirement to be used for 2021 rates with the ICC. In December 2020, the ICC issued an order that approved 2021 electric customer energy-efficiency rates of $51 million, which represents an increase of $7 million from 2020 rates.

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January 2021 Natural Gas Delivery Service Rate Order

In January 2021, the ICC issued an order in Ameren Illinois’ February 2020 natural gas delivery service regulatory rate review, which resulted in an increase to its annual revenues for natural gas delivery service of $76 million based on a 9.67% allowed ROE, a capital structure composed of 52% common equity, and a rate base of $2.1 billion. The new rates became effective in January 2021. As a result of this order, the rate base under the QIP was reset to zero. Ameren Illinois used a 2021 future test year in this proceeding.

QIP Prudence Review

In March 2019, Ameren Illinois filed a request for an ICC prudence review of natural gas infrastructure investments recovered under the QIP during 2018. In November 2019, the Illinois Attorney General’s office challenged the recovery of capital investments, among other things, that were made during 2018, alleging that the amount of investments is excessive based on a comparison to historical investment levels. The Illinois Attorney General’s office is not alleging imprudence or that the investments do not qualify for recovery. In March 2020, the ICC staff filed testimony that supports the prudence and reasonableness of the capital investments made during 2018. Ameren Illinois’ 2018 QIP rate recovery under review by the ICC is within the rate increase limitations allowed by law. Ameren Illinois expects a decision by the ICC in this proceeding within the first half of 2021.

Service Disconnection Moratorium Proceeding

In March 2020, the ICC issued an order requiring all Illinois electric distribution and natural gas utilities to suspend disconnections and late fees for customer nonpayment, on an interim basis, effective March 18, 2020. Pursuant to an ICC order issued in June 2020 and following a voluntary extension of the suspension of residential disconnections, Ameren Illinois resumed disconnection activities for commercial and industrial customers for nonpayment in early August 2020 and residential customers in mid-September 2020, with the exception of residential customers classified as low income, expressing a financial hardship, or relying on medical equipment. Disconnections for nonpayment for these and all other residential customers are expected to begin in April 2021, which is after the annual winter moratorium period on disconnections that ends March 31, 2021. Ameren Illinois began the winter moratorium on November 18, 2020, which has historically started at the beginning of December. Ameren Illinois also resumed charging late fees to all customers in late July 2020. The June 2020 order requires Ameren Illinois to implement more flexible credit and collection practices, on a temporary basis, including longer deferred payment arrangements, extending to 24 months in certain cases, and programs to provide financial assistance to customers. In addition, the order allows Ameren Illinois to recover up to $8 million in costs incurred related to the financial assistance programs. The portion of these costs associated with Ameren Illinois’ electric distribution business will be recovered through its bad debt rider and the portion associated with its natural gas distribution business will be recovered through a special purpose rider established by the order. The order also allows Ameren Illinois to recover forgone customer late fees and costs incurred related to the COVID-19 pandemic. The portion of these forgone late fees and costs associated with Ameren Illinois’ electric distribution business will be recovered through formula rates and the portion associated with its natural gas distribution business will be recovered through the special purpose rider. In addition, the order allows Ameren Illinois’ electric distribution business to recover bad debt expense for 2020, instead of write-offs net of subsequent recoveries, through future true-ups in its bad debt rider. The bad debt rider reverted to the recovery of bad debt write-offs, net of any subsequent recoveries, in 2021.

Federal

Transmission Formula Rate Revisions

In February 2020, the MISO, on behalf of Ameren Missouri, Ameren Illinois, and ATXI, filed requests with the FERC to revise each company’s transmission formula rate calculations with respect to calculation inputs for materials and supplies. In May 2020, the FERC issued orders approving the revisions prospectively. In addition, the FERC declined to order refunds for earlier periods, as requested by intervenors in Ameren Illinois’ filing, but directed its audit staff to review historical rate recovery in connection with an ongoing FERC audit. This review could lead the FERC to ultimately require refunds for periods prior to 2019. In June 2020, Ameren Missouri, Ameren Illinois, and ATXI filed requests for rehearing arguing, among other things, the revisions should be applied retrospectively to include the period January 1, 2019, to June 1, 2020, and that the FERC should not require refunds for periods prior to 2019. In July 2020, the FERC denied the rehearing requests without addressing the issues raised. In July 2020, Ameren Missouri, Ameren Illinois, and ATXI filed an appeal of the July 2020 rehearing denials to the United States Court of Appeals for the District of Columbia Circuit, which is under no deadline to address the appeal. In October 2020, the FERC issued an order reaffirming its May 2020 order and denying the arguments raised in the rehearing requests filed by Ameren Missouri, Ameren Illinois, and ATXI. Pursuant to the May 2020 order, in the second quarter of 2020, Ameren and Ameren Illinois recorded a $2 million reduction to revenue for the period of January 2019 through May 2020. Regardless of the outcome of the appeal, the impacts of the May 2020 and October 2020 orders are not expected to be material to Ameren’s, Ameren Missouri’s, or Ameren Illinois’ results of operations, financial position, or liquidity.

FERC Complaint Cases

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In November 2013, a customer group filed a complaint case with the FERC seeking a reduction in the allowed base ROE for FERC-regulated transmission rate base under the MISO tariff from 12.38% to 9.15%. In September 2016, the FERC issued an order in the November 2013 complaint case, which lowered the allowed base ROE to 10.32%, or a 10.82% total allowed ROE with the inclusion of a 50 basis point incentive adder for participation in an RTO, that was effective from late September 2016 forward. The September 2016 order also required refunds for the period November 2013 to February 2015, which were paid in 2017. With the maximum FERC-allowed refund period for the November 2013 complaint case ended in February 2015, another customer complaint case was filed in February 2015, seeking a further reduction in the allowed base ROE for the period of February 2015 to May 2016. In November 2019, the FERC issued an order addressing the November 2013 complaint case, which set the allowed base ROE at 9.88% and required refunds, with interest, for the periods November 2013 to February 2015 and from late September 2016 forward. The order also dismissed the February 2015 complaint case. In December 2019, Ameren and the MISO transmission owners, including Ameren Missouri, Ameren Illinois, and ATXI, filed requests for rehearing with the FERC. Additionally, in December 2019, various parties filed requests for rehearing with the FERC, challenging the dismissal of the February 2015 complaint case. In May 2020, the FERC issued an order addressing the requests for rehearing, which set the allowed base ROE at 10.02%, superseding the 9.88% previously ordered, and required refunds, with interest, for the periods November 2013 to February 2015 and from late September 2016 forward. The May 2020 order also denied rehearing of the FERC’s dismissal of the February 2015 complaint case. In June 2020, various parties filed requests for rehearing with the FERC, challenging the new ROE methodology established by the May 2020 order. In July 2020, the FERC denied the rehearing requests without addressing the issues raised, and indicated it will address the requests for rehearing in a future order. Also in July 2020, Ameren Missouri, Ameren Illinois, and ATXI filed an appeal of the May 2020 order to the United States Court of Appeals for the District of Columbia Circuit challenging the refunds for the period from September 2016 to May 2020. The court is under no deadline to address the appeal. In November 2020, the FERC issued an order reaffirming its May 2020 order in regards to the 10.02% allowed base ROE and the refund periods and denying the arguments raised in the rehearing requests.

As a result of the May 2020 order, which increased the FERC-allowed ROE from 9.88% to 10.02% for the periods November 2013 to February 2015 and late September 2016 forward, Ameren and Ameren Illinois recognized income of $13 million and $7 million, respectively, during the second quarter of 2020. As of December 31, 2020, Ameren and Ameren Illinois had recorded current regulatory liabilities of $15 million and $7 million, respectively, to reflect the expected refunds, including interest, associated with the allowed base ROE set by the May 2020 order in the November 2013 complaint case. The increase in the FERC-allowed base ROE resulting from the May 2020 order is not material to Ameren Missouri’s results of operations, financial position, or liquidity.

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Regulatory Assets and Liabilities

The following table presents our regulatory assets and regulatory liabilities at December 31, 2020 and 2019:


	2020						2019
	Ameren Missouri		Ameren Illinois		Ameren		Ameren Missouri		Ameren Illinois		Ameren
Regulatory assets:
Under-recovered FAC(a)	$	48	$	—	$	48	$	—	$	—	$	—
Under-recovered Illinois electric power costs(b)	—		4		4		—		4		4

MTM derivative losses(c)	21		200		221		12		242		254

IEIMA revenue requirement reconciliation adjustment(d)(e)	—		—		—		—		17		17
FERC revenue requirement reconciliation adjustment(f)	—		28		50		—		1		16
Under-recovered VBA(g)	—		11		11		—		—		—
Pension and postretirement benefit costs(h)	—		—		—		7		26		33
Income taxes(i)	117		65		183		114		61		177


Bad debt rider(j)	—		11		11		—		—		—
Callaway costs(e)(k)	14		—		14		18		—		18
Callaway refueling and maintenance outage costs(l)	39		—		39		—		—		—
Unamortized loss on reacquired debt(m)	52		22		74		55		31		86
Environmental cost riders(n)	—		93		93		—		127		127
Storm costs(e)(o)	—		7		7		—		7		7

Workers’ compensation claims(p)	4		5		9		4		7		11


Allowance for funds used during construction for pollution control equipment(e)(q)	15		—		15		15		—		15
Customer generation rebate program(e)(r)	—		17		17		—		1		1
Solar rebate program(s)	5		—		5		5		—		5

PISA(e)(t)	78		—		78		41		—		41
RESRAM(u)	2		—		2		9		—		9
FEJA energy-efficiency rider(e)(v)	—		283		283		—		211		211
Other	12		33		45		13		16		29
Total regulatory assets	$	407	$	779	$	1,209	$	293	$	751	$	1,061
Less: current regulatory assets	(60)		(37)		(109)		(8)		(57)		(69)
Noncurrent regulatory assets	$	347	$	742	$	1,100	$	285	$	694	$	992
Regulatory liabilities:
Over-recovered FAC(a)	$	10	$	—	$	10	$	39	$	—	$	39
Over-recovered Illinois electric power costs(b)	—		15		15		—		11		11
Over-recovered PGA(b)	7		15		22		8		14		22
Over-recovered VBA(g)	—		—		—		—		8		8
MTM derivative gains(c)	11		10		21		18		3		21

IEIMA revenue requirement reconciliation adjustment(d)	—		22		22		—		18		18
FERC revenue requirement reconciliation adjustment(f)	—		21		21		—		37		38

Estimated refund for FERC complaint cases(w)	—		7		15		—		23		40
Income taxes(i)	1,317		790		2,192		1,428		813		2,326



Cost of removal(x)	1,027		873		1,923		1,041		827		1,884
AROs(y)	436		—		436		303		—		303


Pension and postretirement benefit costs(h)	198		177		375		—		—		—
Pension and postretirement benefit costs tracker(z)	55		—		55		72		—		72


Renewable energy credits and zero emission credits(aa)	—		200		200		—		155		155

Excess income taxes collected in 2018(ab)	45		—		45		60		—		60
Other	30		21		51		30		24		54
Total regulatory liabilities	$	3,136	$	2,151	$	5,403	$	2,999	$	1,933	$	5,051
Less: current regulatory liabilities	(26)		(88)		(121)		(62)		(84)		$	(164)
Noncurrent regulatory liabilities	$	3,110	$	2,063	$	5,282	$	2,937	$	1,849	$	4,887

(a)Under-recovered or over-recovered fuel costs to be recovered or refunded through the FAC. Specific accumulation periods aggregate the under-recovered or over-recovered costs over four months, any related adjustments that occur over the following four months, and the recovery from, or refund to, customers that occurs over the next eight months.

(b)Under-recovered or over-recovered costs from utility customers. Amounts will be recovered from, or refunded to, customers within one year of the deferral.

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(c)Deferral of commodity-related derivative MTM losses or gains. See Note 7 – Derivative Financial Instruments for additional information.

(d)The difference between Ameren Illinois’ electric distribution service annual revenue requirement calculated under the performance-based formula ratemaking framework and the revenue requirement included in customer rates for that year. Any under-recovery or over-recovery will be recovered from, or refunded to, customers with interest within two years.

(e)These assets earn a return at the applicable WACC.

(f)Ameren Illinois’ and ATXI’s annual revenue requirement reconciliation calculated pursuant to the FERC’s electric transmission formula ratemaking framework. Any under-recovery or over-recovery will be recovered from, or refunded to, customers within two years.

(g)Under-recovered or over-recovered natural gas revenue caused by sales volume deviations from weather normalized sales approved by the ICC in rate regulatory reviews. Each year’s amount will be recovered from or refunded to customers from April through December of the following year.

(h)Under-recovered or over-recovered costs are being amortized in proportion to the recognition of prior service costs (credits) and actuarial losses (gains) attributable to Ameren’s pension plan and postretirement benefit plans. See Note 10 – Retirement Benefits for additional information.

(i)The regulatory assets represent amounts that will be recovered from customers for deferred income taxes related to the equity component of allowance for funds used during construction and the effects of tax rate changes. The regulatory liabilities represent amounts that will be refunded to customers for deferred income taxes related to depreciation differences, other tax liabilities, and the unamortized portion of investment tax credits recorded at rates in excess of current statutory rates. Amounts associated with the equity component of allowance for funds used during construction, and the unamortized portion of investment tax credits will be amortized over the expected life of the related assets. For net regulatory liabilities related to deferred income taxes recorded at rates other than the current statutory rate, the weighted-average remaining amortization periods at Ameren, Ameren Missouri, and Ameren Illinois are 34, 26, and 42 years.

(j)A rider for the difference between the level of bad debt write-offs, net of any subsequent recoveries, incurred by Ameren Illinois and the level of such costs included in electric distribution and natural gas delivery service rates. Pursuant to the June 2020 ICC order in the service disconnection moratorium proceeding discussed above, Ameren Illinois’ electric distribution bad debt rider provided for the recovery of bad debt expense in 2020. The under-recovery or over-recovery for each year is recovered from, or refunded to, customers over a twelve-month period beginning June the following year.

(k)Ameren Missouri’s Callaway Energy Center operations and maintenance expenses, property taxes, and carrying costs incurred between the plant in-service date and the date the plant was reflected in rates. These costs are being amortized over the original remaining life of the energy center.

(l)In February 2020, the MoPSC issued an order approving a stipulation and agreement allowing Ameren Missouri to defer and amortize maintenance expenses related to scheduled refueling and maintenance outages at its Callaway Energy Center. Maintenance expenses are amortized over the period between refueling and maintenance outages, which has historically been approximately 18 months. Amortization began in January 2021 and will continue until the completion of the next refueling and maintenance outage.

(m)Losses related to reacquired debt. These amounts are being amortized over the lives of the related new debt issuances or the original lives of the old debt issuances if no new debt was issued.

(n)The recoverable portion of accrued environmental site liabilities that will be collected from electric and natural gas customers through ICC-approved cost recovery riders. The period of recovery will depend on the timing of remediation expenditures. See Note 14 – Commitments and Contingencies for additional information.

(o)Storm costs from 2016, 2018, and 2020 deferred in accordance with the IEIMA. These costs are being amortized over five-year periods beginning in the year the storm occurred.

(p)The period of recovery will depend on the timing of actual expenditures.

(q)The MoPSC’s May 2010 electric rate order allowed Ameren Missouri to record an allowance for funds used during construction for pollution control equipment at its Sioux Energy Center until the cost of that equipment was included in customer rates beginning in 2011. These costs are being amortized over the expected life of the Sioux Energy Center, currently through 2033.

(r)Costs associated with Ameren Illinois’ customer generation rebate program. Costs are amortized over a 15-year period, beginning in the year rebates are paid.

(s)Costs associated with Ameren Missouri’s solar rebate program. The amortization period for these assets will be determined in a future electric service regulatory rate review.

(t)Under the PISA, Ameren Missouri is permitted to defer and recover 85% of the depreciation expense and earn a return at the applicable WACC on investments in certain property, plant, and equipment placed in service after September 1, 2018, and not included in base rates. Accumulated PISA deferrals are added to rate base prospectively and amortized over a period of 20 years following a regulatory rate review.

(u)Costs associated with Ameren Missouri’s compliance with the state of Missouri’s renewable energy standard. Costs incurred over a twelve-month period beginning each August are amortized over a twelve-month period beginning February the following year.

(v)The electric energy-efficiency investments are being amortized over their weighted-average useful lives beginning in the period in which they were made, with current remaining amortization periods ranging from 6 to 13 years.

(w)The 2020 balances represent the estimated refunds to transmission customers related to the May 2020 FERC order in the November 2013 FERC complaint case. The 2019 balances represent the estimated refunds to transmission customers related to the November 2019 FERC order in the November 2013 FERC complaint case. See further discussion of the FERC ROE complaint cases above.

(x)Estimated funds collected from customers to pay for the future removal cost of property, plant, and equipment retired from service, net of salvage.

(y)The ARO regulatory liability includes the nuclear decommissioning trust fund balance (December 31, 2020 - $982 million), net of recoverable removal costs for AROs (December 31, 2020 - $546 million). See Note 1 – Summary of Significant Accounting Policies – Asset Retirement Obligations.

(z)A regulatory recovery mechanism for the difference between the level of pension and postretirement benefit costs incurred by Ameren Missouri and the level of such costs included in customer rates. The period of refund varies based on MoPSC approval in a regulatory rate review. For costs incurred prior to 2019, the weighted-average remaining amortization period is four years. For costs incurred during 2019 and after, the amortization period will be determined in a future electric service regulatory rate review.

(aa)Funds collected for the purchase of renewable energy credits and zero emission credits through IPA procurements. The balance will be amortized as the credits are purchased.

(ab)The excess amount collected in rates related to the TCJA from January 1, 2018, through July 31, 2018. The regulatory liability is being amortized over a three-year period, which began in April 2020.

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NOTE 3 – PROPERTY, PLANT, AND EQUIPMENT, NET

The following table presents property, plant, and equipment, net, at December 31, 2020 and 2019:


	Ameren Missouri(a)		Ameren Illinois		Other		Ameren(a)
2020
Property, plant, and equipment at original cost:(b)
Electric generation:
Coal(c)	$	4,875	$	—	$	—	$	4,875
Natural gas and oil	1,097		—		—		1,097
Nuclear	5,608		—		—		5,608
Renewable(d)	1,301		—		—		1,301
Electric distribution	6,784		6,649		—		13,433
Electric transmission	1,482		3,575		1,774		6,831
Natural gas	561		3,308		—		3,869
Other(e)	1,390		1,070		245		2,705
	23,098		14,602		2,019		39,719
Less: Accumulated depreciation and amortization	9,689		3,780		304		13,773
	13,409		10,822		1,715		25,946
Construction work in progress:
Nuclear fuel in process	75		—		—		75
Other	395		379		12		786
Property, plant, and equipment, net	$	13,879	$	11,201	$	1,727	$	26,807
2019
Property, plant, and equipment at original cost:(b)
Electric generation:
Coal(c)	$	4,730	$	—	$	—	$	4,730
Natural gas and oil	1,090		—		—		1,090
Nuclear	5,414		—		—		5,414
Renewable(d)	646		—		—		646
Electric distribution	6,371		6,299		—		12,670
Electric transmission	1,405		3,101		1,642		6,148
Natural gas	528		3,024		—		3,552
Other(e)	1,173		993		236		2,402
	21,357		13,417		1,878		36,652
Less: Accumulated depreciation and amortization	9,195		3,536		275		13,006
	12,162		9,881		1,603		23,646
Construction work in progress:
Nuclear fuel in process	135		—		—		135
Other	338		202		55		595
Property, plant, and equipment, net	$	12,635	$	10,083	$	1,658	$	24,376

(a)Amounts include two CTs that have related financing obligations. The gross cumulative asset value of those agreements was $240 million and $236 million at December 31, 2020 and 2019, respectively. The total accumulated depreciation associated with the two CTs was $99 million and $95 million at December 31, 2020 and 2019, respectively. See Note 5 – Long-term Debt and Equity Financings for additional information on these agreements.

(b)The estimated lives for each asset group are as follows: 5 to 72 years for electric generation, excluding Ameren Missouri’s hydro generating assets, which have useful lives of up to 150 years, 20 to 80 years for electric distribution, 50 to 75 years for electric transmission, 20 to 80 years for natural gas, and 5 to 55 years for other.

(c)Includes $36 million of oil-fired generation in both 2019 and 2020.

(d)Renewable includes hydroelectric, wind, solar, and methane gas generation facilities.

(e)Other property, plant, and equipment includes assets used to support electric and natural gas services.

Capitalized software costs are classified within “Property, Plant, and Equipment, Net” on the balance sheet and are amortized on a straight-line basis over the expected period of benefit, ranging from 3 to 10 years. The following table presents the amortization, gross carrying value, and related accumulated amortization of capitalized software by year:


	Amortization Expense						Gross Carrying Value				Accumulated Amortization
	2020		2019		2018		2020		2019		2020		2019

Ameren	$	93	$	78	$	71	$	1,021	$	901	$	(640)	$	(584)
Ameren Missouri	44		30		24		398		303		(189)		(153)
Ameren Illinois	45		45		44		397		377		(238)		(221)

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Annual amortization expense for capitalized costs for software placed in service as of December 31, 2020, is estimated to be as follows:


	2021		2022		2023		2024		2025
Ameren	$	105	$	94	$	81	$	55	$	23
Ameren Missouri	55		49		45		33		15
Ameren Illinois	46		42		34		21		7

NOTE 4 – SHORT-TERM DEBT AND LIQUIDITY

The liquidity needs of the Ameren Companies are typically supported through the use of available cash, drawings under committed credit agreements, commercial paper issuances, and/or, in the case of Ameren Missouri and Ameren Illinois, short-term affiliate borrowings.

Short-Term Borrowings

The Credit Agreements provide $2.3 billion of credit through maturity in December 2024. The total facility size of the Missouri Credit Agreement and Illinois Credit Agreement is $1.2 billion and $1.1 billion, respectively. The maturity date may be extended for two additional one-year periods upon mutual consent of the borrowers and lenders. Credit available under the agreements is provided by 22 international, national, and regional lenders, with no single lender providing more than $130 million of credit in aggregate.

The obligations of each borrower under the respective Credit Agreements to which it is a party are several and not joint. Except under limited circumstances relating to expenses and indemnities, the obligations of Ameren Missouri and Ameren Illinois under the respective Credit Agreements are not guaranteed by Ameren (parent) or any other subsidiary of Ameren. The following table presents the maximum aggregate amount available to each borrower under each facility:


	Missouri Credit Agreement		Illinois Credit Agreement
Ameren (parent)	$	900	$	500
Ameren Missouri	850		(a)
Ameren Illinois	(a)		800

(a)Not applicable.

The borrowers have the option to seek additional commitments from existing or new lenders to increase the total facility size of the Credit Agreements to a maximum of $1.4 billion for the Missouri Credit Agreement and $1.3 billion for the Illinois Credit Agreement. Ameren (parent) borrowings are due and payable no later than the maturity date of the Credit Agreements. Ameren Missouri and Ameren Illinois borrowings under the applicable Credit Agreement are due and payable no later than the earlier of the maturity date or 364 days after the date of the borrowing.

The obligations of the borrowers under the Credit Agreements are unsecured. Loans are available on a revolving basis under each of the Credit Agreements. Funds borrowed may be repaid and, subject to satisfaction of the conditions to borrowing, reborrowed from time to time. At the election of each borrower, the interest rates on such loans will be the alternate base rate plus the margin applicable to the particular borrower and/or the eurodollar rate plus the margin applicable to the particular borrower. The applicable margins will be determined by the borrower’s long-term unsecured credit ratings or, if no such ratings are in effect, the borrower’s corporate/issuer ratings then in effect. The borrowers have received commitments from the lenders to issue letters of credit up to $100 million under each of the Credit Agreements. In addition, the issuance of letters of credit is subject to the $2.3 billion overall combined facility borrowing limitations of the Credit Agreements.

The borrowers will use the proceeds from any borrowings under the Credit Agreements for general corporate purposes, including working capital, commercial paper liquidity support, loan funding under the Ameren money pool arrangements, and other short-term affiliate loan arrangements. The Missouri Credit Agreement and the Illinois Credit Agreement are available to support issuances under Ameren (parent)’s, Ameren Missouri’s and Ameren Illinois’ commercial paper programs, respectively, subject to borrowing sublimits, as well as to support issuance of letters of credit for the borrowers. As of December 31, 2020, based on commercial paper outstanding and letters of credit issued under the Credit Agreements, along with cash and cash equivalents, the net liquidity available to Ameren (parent), Ameren Missouri, and Ameren Illinois, collectively, was $1.9 billion.

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The following table summarizes the borrowing activity and relevant interest rates under Ameren (parent)’s, Ameren Missouri’s, and Ameren Illinois’ commercial paper issuances and borrowings under the Credit Agreements in the aggregate for the years ended December 31, 2020 and 2019:


	Ameren (parent)				Ameren Missouri				Ameren Illinois				Ameren Consolidated
2020
Average daily amount outstanding	$	108			$	109			$	46			$	263
Commercial paper issuances outstanding at period-end	490				—				—				490
Weighted-average interest rate	1.04		%		1.73		%		0.97		%		1.31		%
Peak amount outstanding during period(a)	$	490			$	573			$	250			$	908
Peak interest rate	3.30		%	(b)	5.05		%	(b)	3.40		%		5.05		%	(b)
2019
Average daily amount outstanding	$	421			$	122			$	157			$	700
Commercial paper issuances outstanding at period-end	153				234				53				440
Weighted-average interest rate	2.66		%		2.62		%		2.43		%		2.60		%
Peak amount outstanding during period(a)	$	651			$	549			$	356			$	1,113
Peak interest rate	3.80		%	(c)	2.97		%		5.00		%	(c)	5.00		%	(c)

(a) The timing of peak outstanding commercial paper issuances and borrowings under the Credit Agreements varies by company. Therefore, the sum of individual company peak amounts may not equal the Ameren consolidated peak amount for the period.

(b) Ameren’s and Ameren Missouri’s peak interest rate was affected by temporary disruptions in the commercial paper market in the first quarter of 2020.

(c) Ameren’s and Ameren Illinois’ peak interest rate was affected by temporary disruptions in the commercial paper market in the third quarter of 2019.

Indebtedness Provisions and Other Covenants

The information below is a summary of the Ameren Companies’ compliance with indebtedness provisions and other covenants.

The Credit Agreements contain conditions for borrowings and issuances of letters of credit. These conditions include the absence of default or unmatured default, material accuracy of representations and warranties (excluding any representation after the closing date as to the absence of material adverse change and material litigation, and the absence of any notice of violation, liability, or requirement under any environmental laws that could have a material adverse effect), and obtaining required regulatory authorizations. In addition, it is a condition for any Ameren Illinois borrowing that, at the time of and after giving effect to such borrowing, Ameren Illinois not be in violation of any limitation on its ability to incur unsecured indebtedness contained in its articles of incorporation.

The Credit Agreements also contain nonfinancial covenants, including restrictions on the ability to incur certain liens, to transact with affiliates, to dispose of assets, to make investments in or transfer assets to its affiliates, and to merge with other entities. The Credit Agreements require each of Ameren, Ameren Missouri, and Ameren Illinois to maintain consolidated indebtedness of not more than 65% of its consolidated total capitalization pursuant to a defined calculation set forth in the agreements. As of December 31, 2020, the ratios of consolidated indebtedness to total consolidated capitalization, calculated in accordance with the provisions of the Credit Agreements, were 56%, 48%, and 45%, for Ameren, Ameren Missouri, and Ameren Illinois, respectively.

The Credit Agreements contain default provisions that apply separately to each borrower. However, a default of Ameren Missouri or Ameren Illinois under the applicable credit agreement is also deemed to constitute a default of Ameren (parent) under such agreement. Defaults include a cross-default resulting from a default of such borrower under any other agreement covering outstanding indebtedness of such borrower and certain subsidiaries (other than project finance subsidiaries and nonmaterial subsidiaries) in excess of $100 million in the aggregate (including under the other credit agreement). However, under the default provisions of the Credit Agreements, any default of Ameren (parent) under either credit agreement that results solely from a default of Ameren Missouri or Ameren Illinois does not result in a cross-default of Ameren (parent) under the other credit agreement. Further, the Credit Agreements default provisions provide that an Ameren (parent) default under either of the Credit Agreements does not constitute a default by Ameren Missouri or Ameren Illinois.

None of the Credit Agreements or financing agreements contain credit rating triggers that would cause a default or acceleration of repayment of outstanding balances. The Ameren Companies were in compliance with the provisions and covenants of the Credit Agreements at December 31, 2020*.*

Money Pools

Ameren has money pool agreements with and among its subsidiaries to coordinate and provide for certain short-term cash and working capital requirements.

Ameren Missouri, Ameren Illinois, and ATXI may participate in the utility money pool as both lenders and borrowers. Ameren (parent) and Ameren Services may participate in the utility money pool only as lenders. Surplus internal funds are contributed to the money pool from

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participants. The primary sources of external funds for the utility money pool are the Credit Agreements and the commercial paper programs. The total amount available to the pool participants from the utility money pool at any given time is reduced by the amount of borrowings made by participants, but it is increased to the extent that the pool participants advance surplus funds to the utility money pool or remit funds from other external sources. The availability of funds is also determined by funding requirement limits established by regulatory authorizations. Participants receiving a loan under the utility 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 utility money pool. The average interest rate for borrowing under the utility money pool for the year ended December 31, 2020, was 0.64% (2019 – 2.48%).

See Note 13 – Related-party Transactions for the amount of interest income and expense from the utility money pool agreement recorded by Ameren Missouri and Ameren Illinois for the years ended December 31, 2020, 2019, and 2018.

NOTE 5 – LONG-TERM DEBT AND EQUITY FINANCINGS

The following table presents long-term debt outstanding, including maturities due within one year, as of December 31, 2020 and 2019:


	2020		2019
Ameren (Parent):
2.70% Senior unsecured notes due 2020	$	—	$	350
2.50% Senior unsecured notes due 2024	450		450
3.65% Senior unsecured notes due 2026	350		350
3.50% Senior unsecured notes due 2031	800		—
Total long-term debt, gross	1,600		1,150
Less: Unamortized discount and premium	(2)		—
Less: Unamortized debt issuance costs	(10)		(6)
Less: Maturities due within one year	—		(350)
Long-term debt, net	$	1,588	$	794
Ameren Missouri:
Bonds and notes:
5.00% Senior secured notes due 2020(a)	—		85
1.60% 1992 Series bonds due 2022(b)	47		47
3.50% Senior secured notes due 2024(a)	350		350
2.95% Senior secured notes due 2027(a)	400		400
3.50% First mortgage bonds due 2029(d)	450		450
2.95% First mortgage bonds due 2030(d)	465		—
2.90% 1998 Series A bonds due 2033(b)	60		60
2.90% 1998 Series B bonds due 2033(b)	50		50
2.75% 1998 Series C bonds due 2033(b)	50		50
5.50% Senior secured notes due 2034(a)	184		184
5.30% Senior secured notes due 2037(a)	300		300
8.45% Senior secured notes due 2039(a)(c)	350		350
3.90% Senior secured notes due 2042(a)(c)	485		485
3.65% Senior secured notes due 2045(a)	400		400
4.00% First mortgage bonds due 2048(d)	425		425
3.25% First mortgage bonds due 2049(d)	330		330
2.625% First mortgage bonds due 2051 (green bonds)(d)	550		—
Finance obligations:
City of Bowling Green agreement (Peno Creek CT) due 2022(e)	16		23
Audrain County agreement (Audrain County CT) due 2023(e)	240		240
Total long-term debt, gross	5,152		4,229
Less: Unamortized discount and premium	(12)		(9)
Less: Unamortized debt issuance costs	(36)		(30)
Less: Maturities due within one year	(8)		(92)
Long-term debt, net	$	5,096	$	4,098

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	2020		2019
Ameren Illinois:
Bonds and notes:
2.70% Senior secured notes due 2022(f)(g)	$	400	$	400
3.25% Senior secured notes due 2025(f)	300		300
6.125% Senior secured notes due 2028(f)	60		60
3.80% First mortgage bonds due 2028(h)	430		430
1.55% First mortgage bonds due 2030(h)	375		—
6.70% Senior secured notes due 2036(f)	61		61
6.70% Senior secured notes due 2036(f)	42		42
4.80% Senior secured notes due 2043(f)	280		280
4.30% Senior secured notes due 2044(f)	250		250
4.15% Senior secured notes due 2046(f)	490		490
3.70% First mortgage bonds due 2047(h)	500		500
4.50% First mortgage bonds due 2049(h)	500		500
3.25% First mortgage bonds due 2050(h)	300		300
Total long-term debt, gross	3,988		3,613
Less: Unamortized discount and premium	(6)		(4)
Less: Unamortized debt issuance costs	(36)		(34)

Long-term debt, net	$	3,946	$	3,575
ATXI:
3.43% Senior unsecured notes due 2050(i)	$	450	$	450
Total long-term debt, gross	450		450

Less: Unamortized debt issuance costs	(2)		(2)

Long-term debt, net	$	448	$	448
Ameren consolidated long-term debt, net	$	11,078	$	8,915

(a)These notes are collaterally secured by first mortgage bonds issued by Ameren Missouri under the Ameren Missouri mortgage indenture. The notes have a fall-away lien provision and will remain secured only as long as any first mortgage bonds issued under the Ameren Missouri mortgage indenture remain outstanding. Redemption, purchase, or maturity of all first mortgage bonds, including first mortgage bonds currently outstanding and any that may be issued in the future, would result in a release of the first mortgage bonds currently securing these notes, at which time these notes would become unsecured obligations. Considering the 2051 maturity of the 2.625% first mortgage bonds and the restrictions preventing a release date to occur that are attached to certain senior secured notes described in footnote (d) below, Ameren Missouri does not expect the first mortgage lien protection associated with these notes to fall away.

(b)These bonds are collaterally secured by first mortgage bonds issued by Ameren Missouri under the Ameren Missouri mortgage indenture and have a fall-away lien provision similar to that of Ameren Missouri’s senior secured notes.

(c)Ameren Missouri has agreed that so long as any of the 3.90% senior secured notes due 2042 are outstanding, Ameren Missouri will not permit a release date to occur, and so long as any of the 8.45% senior secured notes due 2039 are outstanding, Ameren Missouri will not optionally redeem, purchase, or otherwise retire in full the outstanding first mortgage bonds not subject to release provisions.

(d)These bonds are first mortgage bonds issued by Ameren Missouri under the Ameren Missouri bond indenture. They are secured by substantially all Ameren Missouri property and franchises.

(e)Payments due related to these financing obligations are paid to a trustee, which is authorized to utilize the cash only to pay equal amounts due to Ameren Missouri under related bonds issued by the city/county and held by Ameren Missouri. The timing and amounts of payments due from Ameren Missouri under the agreements are equal to the timing and amount of bond service payments due to Ameren Missouri, resulting in no net cash flow. The balance of both the financing obligations and the related investments in debt securities, recorded in “Other Assets,” was $256 million and $263 million, respectively, as of December 31, 2020 and 2019.

(f)These notes are collaterally secured by first mortgage bonds issued by Ameren Illinois under the Ameren Illinois mortgage indenture. The notes have a fall-away lien provision and will remain secured only as long as any first mortgage bonds issued under its mortgage indenture remain outstanding. Redemption, purchase, or maturity of all first mortgage bonds, including first mortgage bonds currently outstanding and any that may be issued in the future, would result in a release of the first mortgage bonds currently securing these notes, at which time these notes would become unsecured obligations. Considering the 2050 maturity date of the 3.25% first mortgage bonds, Ameren Illinois does not expect the first mortgage lien protection associated with these notes to fall away.

(g)Ameren Illinois has agreed that so long as any of the 2.70% senior secured notes due 2022 are outstanding, Ameren Illinois will not permit a release date to occur.

(h)These bonds are first mortgage bonds issued by Ameren Illinois under the Ameren Illinois mortgage indenture. They are secured by substantially all Ameren Illinois property and franchises.

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(i)The following table presents the principal maturities schedule for the 3.43% senior notes due 2050:


Payment Date		Principal Payment
August 2022	$	49.5
August 2024		49.5
August 2027		49.5
August 2030		49.5
August 2032		49.5
August 2038		49.5
August 2043		76.5
August 2050		76.5
Total	$	450.0

The following table presents the aggregate maturities of long-term debt, including current maturities, at December 31, 2020:


	Ameren (parent)(a)		Ameren Missouri(a)		Ameren Illinois(a)		ATXI(a)		Ameren Consolidated(a)
2021	$	—	$	8	$	—	$	—	$	8
2022	—		55		400		50		505
2023	—		240		—		—		240
2024	450		350		—		50		850
2025	—		—		300		—		300
Thereafter	1,150		4,499		3,288		350		9,287
Total	$	1,600	$	5,152	$	3,988	$	450	$	11,190

(a)Excludes unamortized discount, unamortized premium, and debt issuance costs of $12 million, $48 million, $42 million, and $2 million at Ameren (parent), Ameren Missouri, Ameren Illinois, and ATXI, respectively.

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All classes of Ameren Missouri’s and Ameren Illinois’ preferred stock are entitled to cumulative dividends, have voting rights, and are not subject to mandatory redemption. The preferred stock of Ameren’s subsidiaries is included in “Noncontrolling Interests” on Ameren’s consolidated balance sheet. The following table presents the outstanding preferred stock of Ameren Missouri and Ameren Illinois, which is redeemable at the option of the issuer, at the prices shown below as of December 31, 2020 and 2019:


	Shares Outstanding	Redemption Price (per share)			2020		2019
Ameren Missouri:
Without par value and stated value of $100 per share, 25 million shares authorized
$3.50 Series	130,000 shares	$	110.00		$	13	$	13
$3.70 Series	40,000 shares	104.75			4		4
$4.00 Series	150,000 shares	105.625			15		15
$4.30 Series	40,000 shares	105.00			4		4
$4.50 Series	213,595 shares	110.00		(a)	21		21
$4.56 Series	200,000 shares	102.47			20		20
$4.75 Series	20,000 shares	102.176			2		2
$5.50 Series A	14,000 shares	110.00			1		1
Total					$	80	$	80
Ameren Illinois:
With par value of $100 per share, 2 million shares authorized
4.00% Series	144,275 shares	$	101.00		$	14	$	14
4.08% Series	45,224 shares	103.00			5		5
4.20% Series	23,655 shares	104.00			2		2
4.25% Series	50,000 shares	102.00			5		5
4.26% Series	16,621 shares	103.00			2		2
4.42% Series	16,190 shares	103.00			2		2
4.70% Series	18,429 shares	104.30			2		2
4.90% Series	73,825 shares	102.00			7		7
4.92% Series	49,289 shares	103.50			5		5
5.16% Series	50,000 shares	102.00			5		5
6.625% Series	124,274 shares	100.00			12		12
7.75% Series	4,542 shares	100.00			1		1
Total					$	62	$	62
Total Ameren					$	142	$	142

(a)In the event of voluntary liquidation, $105.50.

Ameren has 100 million shares of $0.01 par value preferred stock authorized, with no such shares outstanding. Ameren Missouri has 7.5 million shares of $1 par value preference stock authorized, with no such shares outstanding. Ameren Illinois has 2.6 million shares of no par value preferred stock authorized, with no such shares outstanding.

Ameren

Under the DRPlus and its 401(k) plan, Ameren issued 0.7 million, 0.9 million, and 1.2 million shares of common stock in 2020, 2019, and 2018, respectively, and received proceeds of $51 million, $68 million, and $74 million for the respective years. In addition, Ameren issued 0.5 million, 0.8 million, and 0.7 million shares of common stock valued at $38 million, $54 million, and $35 million in 2020, 2019, 2018, respectively, for no cash consideration in connection with stock-based compensation.

In May 2020, Ameren filed a Form S-3 registration statement with the SEC, authorizing the offering of 4 million additional shares of its common stock under the DRPlus, which expires in May 2023. Shares of common stock sold under the DRPlus are, at Ameren’s option, newly issued shares, treasury shares, or shares purchased in the open market or in privately negotiated transactions.

In October 2020, Ameren, Ameren Missouri, and Ameren Illinois filed a Form S-3 shelf registration statement with the SEC, registering the issuance of an unspecified amount of certain types of securities. This registration statement expires in October 2023.

In October 2018, Ameren filed a Form S-8 registration statement with the SEC, authorizing the offering of 4 million additional shares of its common stock under its 401(k) plan. Shares of common stock issuable under the 401(k) plan are, at Ameren’s option, newly issued shares, treasury shares, or shares purchased in the open market or in privately negotiated transactions.

In August 2019, Ameren entered into a forward sale agreement with a counterparty relating to 7.5 million shares of common stock. In

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December 2020, pursuant to the agreement terms, Ameren partially settled the forward sale agreement by physically delivering 5.9 million shares of common stock for cash proceeds of $425 million. In February 2021, Ameren settled the remainder of the forward sale agreement by physically delivering 1.6 million shares of common stock for cash proceeds of $113 million. The proceeds were used to fund a portion of Ameren Missouri’s wind generation investments. See Note 2 – Rate and Regulatory Matters for additional information about the wind generation facilities.

In April 2020, Ameren (parent) issued $800 million of 3.50% senior unsecured notes due January 2031, with interest payable semiannually on January 15 and July 15 of each year, beginning July 15, 2020. Ameren received net proceeds of $793 million, which were used for general corporate purposes, including to repay outstanding short-term debt, and were used to fund the repayment of Ameren’s $350 million of 2.70% senior unsecured notes, which were redeemed at par plus accrued interest in October 2020.

In September 2019, Ameren issued $450 million of 2.50% senior unsecured notes due September 2024, with interest payable semiannually on March 15 and September 15 of each year, beginning March 15, 2020. Ameren received net proceeds of $447 million, which were used to repay outstanding short-term debt.

Ameren Missouri

In March 2020, Ameren Missouri issued $465 million of 2.95% first mortgage bonds due March 2030, with interest payable semiannually on March 15 and September 15 of each year, beginning September 15, 2020. Ameren Missouri received net proceeds of $462 million, which were used to repay outstanding short-term debt, including short-term debt that Ameren Missouri incurred in connection with the repayment of $85 million of its 5.00% senior secured notes that matured in February 2020.

In October 2020, Ameren Missouri issued $550 million of 2.625% first mortgage bonds due March 2051, with interest payable semiannually on March 15 and September 15 of each year, beginning March 15, 2021. The bonds were issued as green bonds; therefore, the proceeds will be used for eligible green projects. Ameren Missouri received net proceeds of $543 million, which were used to partially finance the acquisition of two wind generation facilities. See Note 2 – Rate and Regulatory Matters for information about the wind generation facilities.

In March 2019, Ameren Missouri issued $450 million of 3.50% first mortgage bonds due March 2029, with interest payable semiannually on March 15 and September 15 of each year, beginning September 15, 2019. Ameren Missouri received net proceeds of $447 million, which were used to repay outstanding short-term debt, including short-term debt that Ameren Missouri incurred in connection with the repayment of $329 million of its 6.70% senior secured notes that matured February 1, 2019.

In June and July 2019, all of the 1992 Series bonds, 1998 Series A bonds, 1998 Series B bonds, and 1998 Series C bonds issued by the Missouri Environmental Authority on behalf of Ameren Missouri were subject to purchase in lieu of redemption or a mandatory tender as a result of a change in the method of determining the interest rates on the bonds. The interest rate method of each of the series of bonds, as well as Ameren Missouri’s first mortgage bonds that collaterally secure each of the series of bonds, was changed from a variable rate to a fixed rate. Upon the change in the method of determining the interest rate, the bonds, totaling $207 million, were remarketed to new investors. The following table provides additional information on the bonds:


	1992 Series	1998 Series A	1998 Series B	1998 Series C
Transaction month	June 2019	July 2019	July 2019	June 2019
Principal amount	$47	$60	$50	$50
Fixed interest rate	1.60%	2.90%	2.90%	2.75%
Variable interest rate(a)	2.58%	3.43%	3.57%	3.43%
Maturity	December 2022	September 2033	September 2033	September 2033
Interest payment dates	June 1 and December 1	March 1 and September 1	March 1 and September 1	March 1 and September 1
Initial interest payment date	December 2019	September 2019	September 2019	September 2019

(a)Represents the variable interest rate of the bonds effective prior to the change in method of determining the interest rate.

In October 2019, Ameren Missouri issued $330 million of 3.25% first mortgage bonds due October 2049, with interest payable semiannually on April 1 and October 1 of each year, beginning April 1, 2020. Ameren Missouri received net proceeds of $326 million, which were used to repay $244 million of its 5.10% senior unsecured notes due October 1, 2019, with the remaining proceeds used to repay a portion of its short-term debt.

In October 2019, Ameren Missouri redeemed the remaining amount outstanding of its 5.45% first mortgage bonds due 2028 for less than $1 million.

For information on Ameren Missouri’s capital contributions, refer to Capital Contributions in Note 13 – Related-party Transactions.

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Ameren Illinois

In November 2020, Ameren Illinois issued $375 million of 1.55% first mortgage bonds due November 2030, with interest payable semiannually on May 15 and November 15 of each year, beginning May 15, 2021. Ameren Illinois received net proceeds of $371 million, which were used to repay short-term debt.

In November 2019, Ameren Illinois issued $300 million of 3.25% first mortgage bonds due March 2050, with interest payable semiannually on March 15 and September 15 of each year, beginning March 15, 2020. Ameren Illinois received net proceeds of $296 million, which were used to repay outstanding short-term debt.

For information on Ameren Illinois’ capital contributions, refer to Capital Contributions in Note 13 – Related-party Transactions.

Indenture Provisions and Other Covenants

Ameren Missouri’s and Ameren Illinois’ indentures and articles of incorporation include covenants and provisions related to issuances of first mortgage bonds and preferred stock. Ameren Missouri and Ameren Illinois are required to meet certain ratios to issue additional first mortgage bonds and preferred stock. A failure to achieve these ratios would not result in a default under these covenants and provisions but would restrict the companies’ ability to issue bonds or preferred stock. The following table summarizes the required and actual interest coverage ratios for interest charges, dividend coverage ratios, and bonds and preferred stock issuable as of December 31, 2020, at an assumed interest rate of 5% and dividend rate of 6%.


	Required Interest Coverage Ratio(a)	Actual Interest Coverage Ratio	Bonds Issuable(b)	Required Dividend Coverage Ratio(c)	Actual Dividend Coverage Ratio	Preferred Stock Issuable
Ameren Missouri	>2.0	3.4	$5,025	>2.5	128.5	$2,872
Ameren Illinois	>2.0	7.1	7,229	>1.5	3.3	203	(d)

(a)Coverage required on the annual interest charges on first mortgage bonds outstanding and to be issued. Coverage is not required in certain cases when additional first mortgage bonds are issued on the basis of retired bonds.

(b)Amount of bonds issuable based either on required coverage ratios or unfunded property additions, whichever is more restrictive. The amounts shown also include bonds issuable based on retired bond capacity of $2,442 million and $643 million at Ameren Missouri and Ameren Illinois, respectively.

(c)Coverage required on the annual dividend on preferred stock outstanding and to be issued, as required in the respective company’s articles of incorporation.

(d)Preferred stock issuable is restricted by the amount of preferred stock that is currently authorized by Ameren Illinois’ articles of incorporation.

Ameren’s indenture does not require Ameren to comply with any quantitative financial covenants. The indenture does, however, include certain cross-default provisions. Specifically, either (1) the failure by Ameren to pay when due and upon expiration of any applicable grace period any portion of any Ameren indebtedness in excess of $25 million, or (2) the acceleration upon default of the maturity of any Ameren indebtedness in excess of $25 million under any indebtedness agreement, including borrowings under the Credit Agreements or the Ameren commercial paper program, constitutes a default under the indenture, unless such past due or accelerated debt is discharged or the acceleration is rescinded or annulled within a specified period.

Ameren Missouri and Ameren Illinois and certain other nonregistrant Ameren subsidiaries are subject to Section 305(a) of the Federal Power Act, which makes it unlawful for any officer or director of a public utility, as defined in the Federal Power Act, to participate in the making or paying of any dividend from any funds “properly included in capital account.” The FERC has consistently interpreted the provision to allow dividends to be paid as long as (1) the source of the dividends is clearly disclosed, (2) the dividends are not excessive, and (3) there is no self-dealing on the part of corporate officials. At a minimum, Ameren believes that dividends can be paid by its subsidiaries that are public utilities from net income and retained earnings. In addition, under Illinois law, Ameren Illinois and ATXI may not pay any dividend on their respective stock unless, among other things, their respective earnings and earned surplus are sufficient to declare and pay a dividend after provisions are made for reasonable and proper reserves, or unless Ameren Illinois or ATXI has specific authorization from the ICC.

Ameren Illinois’ articles of incorporation require dividend payments on its common stock to be based on ratios of common stock to total capitalization and other provisions related to certain operating expenses and accumulations of earned surplus. Ameren Illinois has made a commitment to the FERC to maintain a minimum 30% ratio of common stock equity to total capitalization. As of December 31, 2020, using the FERC-agreed upon calculation method, Ameren Illinois’ ratio of common stock equity to total capitalization was 54%.

ATXI’s note purchase agreement includes financial covenants that require ATXI not to permit at any time (1) debt to exceed 70% of total capitalization or (2) secured debt to exceed 10% of total assets.

At December 31, 2020, the Ameren Companies were in compliance with the provisions and covenants contained in their indentures and articles of incorporation, as applicable, and ATXI was in compliance with the provisions and covenants contained in its note purchase agreement. In order for the Ameren Companies to issue securities in the future, they will have to comply with all applicable requirements in effect at the time of any such issuances.

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Off-Balance-Sheet Arrangements

At December 31, 2020, none of the Ameren Companies had any significant off-balance-sheet financing arrangements, other than the forward sale agreement relating to common stock, which was fully settled by mid-February 2021, and variable interest entities. See Note 1 – Summary of Significant Accounting Policies for further detail concerning variable interest entities.

NOTE 6 – OTHER INCOME, NET

The following table presents the components of “Other Income, Net” in the Ameren Companies’ statements of income for the years ended December 31, 2020, 2019, and 2018:


	2020			2019		2018
Ameren:
Other Income, Net
Allowance for equity funds used during construction	$	32		$	28	$	36
Interest income on industrial development revenue bonds	25			25		26
Other interest income	4			8		7
Non-service cost components of net periodic benefit income (a)	116			90		70
Miscellaneous income	13			6		8
Donations	(25)		(b)	(12)		(33)
Miscellaneous expense	(14)			(15)		(12)
Total Other Income, Net	$	151		$	130	$	102
Ameren Missouri:
Other Income, Net
Allowance for equity funds used during construction	$	19		$	19	$	27
Interest income on industrial development revenue bonds	25			25		26
Other interest income	1			1		2
Non-service cost components of net periodic benefit income (a)	46			18		17
Miscellaneous income	4			5		4
Donations	(12)		(b)	(3)		(14)
Miscellaneous expense	(7)			(7)		(6)
Total Other Income, Net	$	76		$	58	$	56
Ameren Illinois:
Other Income, Net
Allowance for equity funds used during construction	$	13		$	9	$	9
Interest income	3			6		6
Non-service cost components of net periodic benefit income (a)	48			47		34
Miscellaneous income	6			3		3
Donations	(5)			(5)		(6)
Miscellaneous expense	(6)			(7)		(4)
Total Other Income, Net	$	59		$	53	$	42

(a)For the years ended December 31, 2020, 2019, and 2018, the non-service cost components of net periodic benefit income were adjusted by amounts deferred of $(4) million, $29 million, and $17 million, respectively, due to a tracker for the difference between the level of such costs incurred by Ameren Missouri under GAAP and the level of such costs included in rates.

(b)Includes $8 million pursuant to Ameren Missouri’s March 2020 electric rate order. See Note 2 – Rate and Regulatory Matters for additional information.

NOTE 7 – DERIVATIVE FINANCIAL INSTRUMENTS

We use derivatives 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. Such price fluctuations may cause the following:

an unrealized appreciation or depreciation of our contracted commitments to purchase or sell when purchase or sale prices under the commitments are compared with current commodity prices;
market values of natural gas and uranium inventories that differ from the cost of those commodities in inventory;
actual cash outlays for the purchase of these commodities that differ from anticipated cash outlays; and
actual off-system sales revenues that differ from anticipated revenues.

The derivatives that we use to hedge these risks are governed by our risk management policies for forward contracts, futures, options, and swaps. Our net positions are continually assessed within our structured hedging programs to determine whether new or offsetting transactions are required. The goal of the hedging program is generally to mitigate financial risks while ensuring that sufficient volumes are

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available to meet our requirements. Contracts we enter into as part of our risk management program may be settled financially, settled by physical delivery, or net settled with the counterparty.

All contracts considered to be derivative instruments are required to be recorded on the balance sheet at their fair values, unless the NPNS exception applies. See Note 8 – Fair Value Measurements for discussion of our methods of assessing the fair value of derivative instruments. Many of our physical contracts, such as our purchased power contracts, qualify for the NPNS exception to derivative accounting rules. The revenue or expense on NPNS contracts is recognized at the contract price upon physical delivery. The following disclosures exclude NPNS contracts and other non-derivative commodity contracts that are accounted for under the accrual method of accounting.

If we determine that a contract meets the definition of a derivative and is not eligible for the NPNS exception, we review the contract to determine whether the resulting gains or losses qualify for regulatory deferral. Derivative contracts that qualify for regulatory deferral are recorded at fair value, with changes in fair value recorded as regulatory assets or liabilities in the period in which the change occurs. We believe derivative losses and gains deferred as regulatory assets and liabilities are probable of recovery, or refund, through future rates charged to customers. Regulatory assets and liabilities are amortized to operating income as related losses and gains are reflected in rates charged to customers. Therefore, gains and losses on these derivatives have no effect on operating income. As of December 31, 2020 and 2019, all contracts that met the definition of a derivative and were not eligible for the NPNS exception received regulatory deferral. Cash flows for all derivative financial instruments are classified in cash flows from operating activities.

The following table presents open gross commodity contract volumes by commodity type for derivative assets and liabilities as of December 31, 2020 and 2019. As of December 31, 2020, these contracts extended through October 2023, March 2026, May 2032, and March 2023 for fuel oils, natural gas, power, and uranium, respectively.


	Quantity (in millions, except as indicated)
	2020			2019
Commodity	Ameren Missouri	Ameren Illinois	Ameren	Ameren Missouri	Ameren Illinois	Ameren
Fuel oils (in gallons)	43	—	43	58	—	58
Natural gas (in mmbtu)	33	114	147	20	136	156
Power (in MWhs)	6	7	13	5	7	12
Uranium (pounds in thousands)	365	—	365	565	—	565

The following table presents the carrying value and balance sheet location of all derivative commodity contracts, none of which were designated as hedging instruments, as of December 31, 2020 and 2019:


			2020					2019
Commodity	Balance Sheet Location		Ameren Missouri		Ameren Illinois		Ameren		Ameren Missouri		Ameren Illinois		Ameren
Fuel oils	Other current assets	$	2	$	—	$	2	$	4	$	—	$	4
	Other assets		—		—		—		2		—		2

Natural gas	Other current assets		1		8		9		—		3		3
	Other assets		2		2		4		—		1		1

Power	Other current assets		7		—		7		14		—		14
	Other assets		—		—		—		2		—		2

	Total assets	$	12	$	10	$	22	$	22	$	4	$	26

Fuel oils	Other current liabilities	$	7	$	—	$	7	$	4	$	—	$	4
	Other deferred credits and liabilities		2		—		2		3		—		3

Natural gas	Other current liabilities		1		1		2		1		12		13
	Other deferred credits and liabilities		—		1		1		1		6		7

Power	Other current liabilities		3		17		20		2		17		19
	Other deferred credits and liabilities		8		181		189		1		207		208


Uranium	Other deferred credits and liabilities		—		—		—		1		—		1
	Total liabilities	$	21	$	200	$	221	$	13	$	242	$	255

The Ameren Companies elect to present the fair value amounts of derivative assets and derivative liabilities subject to an enforceable master netting arrangement or similar agreement at the gross amounts on the balance sheet. However, if the gross amounts recognized on the balance sheet were netted with derivative instruments and cash collateral received or posted, the net amounts would not be materially different from the gross amounts at December 31, 2020 and 2019.

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Credit Risk

In determining our concentrations of credit risk related to derivative instruments, we review our individual counterparties and categorize each counterparty into groupings according to the primary business in which each engages. As of December 31, 2020, if counterparty groups were to fail completely to perform on contracts, the Ameren Companies’ maximum exposure related to derivative assets would have been immaterial with or without consideration of the application of master netting arrangements or similar agreements and collateral held.

Certain of our derivative instruments contain collateral provisions tied to the Ameren Companies’ credit ratings. If our credit ratings were downgraded below investment grade, or if a counterparty with reasonable grounds for uncertainty regarding our ability to satisfy an obligation requested adequate assurance of performance, additional collateral postings might be required. The additional collateral required is the net liability position allowed under the master netting arrangements or similar agreements, assuming (1) the credit risk-related contingent features underlying these arrangements were triggered and (2) those counterparties with rights to do so requested collateral. As of December 31, 2020, the aggregate fair value of derivative instruments with credit risk-related contingent features in a gross liability position, the cash collateral posted, and the aggregate amount of additional collateral that counterparties could require were each immaterial to Ameren, Ameren Missouri, and Ameren Illinois.

NOTE 8 – FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We use various methods to determine fair value, including market, income, and cost approaches. With these approaches, we adopt certain assumptions that market participants would use in pricing the asset or liability, including assumptions about market risk or the risks inherent in the inputs to the valuation. Inputs to valuation can be readily observable, market-corroborated, or unobservable. We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Authoritative accounting guidance established a fair value hierarchy that prioritizes the inputs used to measure fair value. All financial assets and liabilities carried at fair value are classified and disclosed in one of the following three hierarchy levels:

Level 1 (quoted prices in active markets for identical assets or liabilities): Inputs based on quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities are primarily exchange-traded derivatives, cash and cash equivalents, and listed equity securities.

The market approach is used to measure the fair value of equity securities held in Ameren Missouri’s nuclear decommissioning trust fund. Equity securities in this fund are representative of the S&P 500 index, excluding securities of Ameren Corporation, owners and/or operators of nuclear power plants, and the trustee and investment managers. The S&P 500 index comprises stocks of large-capitalization companies.

Level 2 (significant other observable inputs): Market-based inputs corroborated by third-party brokers or exchanges based on transacted market data. Level 2 assets and liabilities include certain assets held in Ameren Missouri’s nuclear decommissioning trust fund, including United States Treasury and agency securities, corporate bonds and other fixed-income securities, and certain over-the-counter derivative instruments, including natural gas and financial power transactions.

Fixed income securities are valued by using prices from independent industry-recognized data vendors who provide values that are either exchange-based or matrix-based. The fair value measurements of fixed-income securities classified as Level 2 are based on inputs other than quoted prices that are observable for the asset or liability. Examples are matrix pricing, market corroborated pricing, and inputs such as yield curves and indices.

Derivative instruments classified as Level 2 are valued by corroborated observable inputs, such as pricing services or prices from similar instruments that trade in liquid markets. Our development and corroboration process entails obtaining multiple quotes or prices from outside sources. To derive our forward view to price our derivative instruments at fair value, we average the bid/ask spreads to the midpoints. To validate forward prices obtained from outside parties, we compare the pricing to recently settled market transactions. Additionally, a review of all sources is performed to identify any anomalies or potential errors. Further, we consider the volume of transactions on certain trading platforms in our reasonableness assessment of the averaged midpoints. The value of natural gas derivative contracts is based upon exchange closing prices without significant unobservable adjustments. The value of power derivative contracts is based upon exchange closing prices or the use of multiple forward prices provided by third parties. The prices are averaged and shaped to a monthly profile when needed without significant unobservable adjustments.

Level 3 (significant other unobservable inputs): Unobservable inputs that are not corroborated by market data. Level 3 assets and liabilities are valued by internally developed models and assumptions or methodologies that use significant unobservable inputs. Level 3 assets and liabilities include derivative instruments that trade in less liquid markets, where pricing is largely unobservable. We value Level 3

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instruments by using pricing models with inputs that are often unobservable in the market, such as certain internal assumptions, quotes or prices from outside sources not supported by a liquid market, or trend rates.

We perform an analysis each quarter to determine the appropriate hierarchy level of the assets and liabilities subject to fair value measurements. Financial assets and liabilities are classified in their entirety according to the lowest level of input that is significant to the fair value measurement. All assets and liabilities whose fair value measurement is based on significant unobservable inputs are classified as Level 3.

We consider nonperformance risk in our valuation of derivative instruments by analyzing our own credit standing and the credit standing of our counterparties, and by considering any credit enhancements (e.g., collateral). Included in our valuation, and based on current market conditions, is a valuation adjustment for counterparty default derived from market data such as the price of credit default swaps, bond yields, and credit ratings. No material gains or losses related to valuation adjustments for counterparty default risk were recorded at Ameren, Ameren Missouri, or Ameren Illinois in 2020, 2019, or 2018. At December 31, 2020 and 2019, the counterparty default risk valuation adjustment related to derivative contracts was immaterial for Ameren, Ameren Missouri, and Ameren Illinois.

The following table sets forth, by level within the fair value hierarchy, our assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 and 2019:


		December 31, 2020									December 31, 2019
		Level 1		Level 2		Level 3		Total			Level 1		Level 2		Level 3		Total
Assets:
Ameren Missouri
	Derivative assets – commodity contracts:
	Fuel oils	$	—	$	—	$	2	$	2		$	—	$	—	$	6	$	6
	Natural gas	—		3		—		3			—		—		—		—
	Power	2		—		5		7			—		2		14		16

	Total derivative assets – commodity contracts	$	2	$	3	$	7	$	12		$	—	$	2	$	20	$	22
	Nuclear decommissioning trust fund:

	Equity securities:
	U.S. large capitalization	$	680	$	—	$	—	$	680		$	569	$	—	$	—	$	569
	Debt securities:
	U.S. Treasury and agency securities	—		115		—		115			—		107		—		107
	Corporate bonds	—		115		—		115			—		93		—		93


	Other	—		67		—		67			—		73		—		73
	Total nuclear decommissioning trust fund	$	680	$	297	$	—	$	977	(a)	$	569	$	273	$	—	$	842	(a)
	Total Ameren Missouri	$	682	$	300	$	7	$	989		$	569	$	275	$	20	$	864
Ameren Illinois
	Derivative assets – commodity contracts:
	Natural gas	$	—	$	6	$	4	$	10		$	—	$	1	$	3	$	4


Ameren
	Derivative assets – commodity contracts(b)	$	2	$	9	$	11	$	22		$	—	$	3	$	23	$	26
	Nuclear decommissioning trust fund(c)	680		297		—		977		(a)	569		273		—		842		(a)
	Total Ameren	$	682	$	306	$	11	$	999		$	569	$	276	$	23	$	868
Liabilities:
Ameren Missouri
	Derivative liabilities – commodity contracts:
	Fuel oils	$	6	$	—	$	3	$	9		$	1	$	—	$	6	$	7
	Natural gas	—		1		—		1			—		2		—		2
	Power	8		—		3		11			—		2		1		3
	Uranium	—		—		—		—			—		—		1		1
	Total Ameren Missouri	$	14	$	1	$	6	$	21		$	1	$	4	$	8	$	13
Ameren Illinois
	Derivative liabilities – commodity contracts:
	Natural gas	$	—	$	1	$	1	$	2		$	3	$	12	$	3	$	18
	Power	—		—		198		198			—		—		224		224
	Total Ameren Illinois	$	—	$	1	$	199	$	200		$	3	$	12	$	227	$	242
Ameren
	Derivative liabilities – commodity contracts(b)	$	14	$	2	$	205	$	221		$	4	$	16	$	235	$	255

(a)Balance excludes $5 million and $5 million of cash and cash equivalents, receivables, payables, and accrued income, net for December 31, 2020 and 2019, respectively.

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(b)See the Ameren Missouri and Ameren Illinois sections of the table for a breakout of the fair value of Ameren’s derivative assets and liabilities by type of commodity.

(c)See the Ameren Missouri section of the table for a breakout of Ameren’s nuclear decommissioning trust fund by investment type.

See Note 10 – Retirement Benefits for tables that set forth, by level within the fair value hierarchy, Ameren’s pension and postretirement plan assets as of December 31, 2020 and 2019.

Level 3 fuel oils, natural gas and uranium derivative contract assets and liabilities measured at fair value on a recurring basis were immaterial for all periods presented. The following table presents the fair value reconciliation of Level 3 power derivative contract assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2020 and 2019:


	2020						2019
	Ameren Missouri		Ameren Illinois		Ameren		Ameren Missouri		Ameren Illinois		Ameren





















Beginning balance at January 1	$	13	$	(224)	$	(211)	$	—	$	(183)	$	(183)
Realized and unrealized gains (losses) included in regulatory assets/liabilities	15		8		23		23		(56)		(33)


Settlements	(26)		18		(8)		(7)		15		8

Transfers out of Level 3	—		—		—		(3)		—		(3)
Ending balance at December 31	$	2	$	(198)	$	(196)	$	13	$	(224)	$	(211)
Change in unrealized gains (losses) related to assets/liabilities held at December 31	$	1	$	9	$	10	$	12	$	(54)	$	(42)

All gains or losses related to our Level 3 derivative commodity contracts are expected to be recovered or returned through customer rates; therefore, there is no impact to either net income or other comprehensive income resulting from changes in the fair value of these instruments.

The following table describes the valuation techniques and significant unobservable inputs utilized for the fair value of our Level 3 power derivative contract assets and liabilities as of December 31, 2020 and 2019:


		Fair Value							Weighted Average(b)
	Commodity	Assets		Liabilities		Valuation Technique(s)	Unobservable Input(a)	Range









2020	Power(c)	$	5	$	(201)	Discounted cash flow	Average forward peak and off-peak pricing – forwards/swaps ($/MWh)	23 – 37	29

							Nodal basis ($/MWh)	(6) – 0	(2)


							Trend rate (%)	2 – 6	3











































2019	Power(d)	$	14	$	(225)	Discounted cash flow	Average forward peak and off-peak pricing – forwards/swaps ($/MWh)	22 – 34	25
							Nodal basis ($/MWh)	(6) – 0	(2)


							Trend rate (%)	(1) – 0	0

(a)Generally, significant increases (decreases) in these inputs in isolation would result in a significantly higher (lower) fair value measurement.

(b)Unobservable inputs were weighted by relative fair value.

(c)Valuations through 2029 use visible forward prices adjusted for nodal-to-hub basis differentials. Valuations beyond 2029 use a trend rate factor and are similarly adjusted for nodal-to-hub basis differentials.

(d)Valuations through 2028 use visible forward prices adjusted for nodal-to-hub basis differentials. Valuations beyond 2028 use a trend rate factor and are similarly adjusted for nodal-to-hub basis differentials.

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The following table sets forth, by level within the fair value hierarchy, the carrying amount and fair value of financial assets and liabilities disclosed, but not carried, at fair value as of December 31, 2020 and 2019:


	Carrying Amount			Fair Value
			Level 1			Level 2			Level 3			Total
Ameren:	December 31, 2020
Cash, cash equivalents, and restricted cash	$	301		$	301		$	—		$	—		$	301
Investments in industrial development revenue bonds(a)	256			—			256			—			256
Short-term debt	490			—			490			—			490
Long-term debt (including current portion)(a)	11,086		(b)	—			12,778			537		(c)	13,315
Ameren Missouri:
Cash, cash equivalents, and restricted cash	$	145		$	145		$	—		$	—		$	145
Advances to money pool	139			—			139			—			139
Investments in industrial development revenue bonds(a)	256			—			256			—			256


Long-term debt (including current portion)(a)	5,104		(b)	—			6,160			—			6,160
Ameren Illinois:
Cash, cash equivalents, and restricted cash	$	147		$	147		$	—		$	—		$	147


Borrowings from money pool	19			—			19			—			19
Long-term debt (including current portion)	3,946		(b)	—			4,822			—			4,822
	December 31, 2019
Ameren:
Cash, cash equivalents, and restricted cash	$	176		$	176		$	—		$	—		$	176
Investments in industrial development revenue bonds(a)	263			—			263			—			263
Short-term debt	440			—			440			—			440
Long-term debt (including current portion)(a)	9,357		(b)	—			9,957			484		(c)	10,441
Ameren Missouri:
Cash, cash equivalents, and restricted cash	$	39		$	39		$	—		$	—		$	39

Investments in industrial development revenue bonds(a)	263			—			263			—			263
Short-term debt	234			—			234			—			234

Long-term debt (including current portion)(a)	4,190		(b)	—			4,772			—			4,772
Ameren Illinois:
Cash, cash equivalents, and restricted cash	$	125		$	125		$	—		$	—		$	125

Short-term debt	53			—			53			—			53

Long-term debt (including current portion)	3,575		(b)	—			4,019			—			4,019

(a)Ameren and Ameren Missouri have investments in industrial development revenue bonds, classified as held-to-maturity and recorded in “Other Assets,” that are equal to the finance obligations for the Peno Creek and Audrain CT energy centers. As of December 31, 2020 and 2019, the carrying amount of both the investments in industrial development revenue bonds and the finance obligations approximated fair value.

(b)Included unamortized debt issuance costs, which were excluded from the fair value measurement, of $84 million, $36 million, and $36 million for Ameren, Ameren Missouri, and Ameren Illinois, respectively, as of December 31, 2020. Included unamortized debt issuance costs, which were excluded from the fair value measurement, of $72 million, $30 million, and $34 million for Ameren, Ameren Missouri, and Ameren Illinois, respectively, as of December 31, 2019.

(c)The Level 3 fair value amount consists of ATXI’s senior unsecured notes.

NOTE 9 – CALLAWAY ENERGY CENTER

Maintenance Outage

During its return to full power after the completion of the last refueling and maintenance outage in late December 2020, the Callaway Energy Center experienced a non-nuclear operating issue related to its generator. A thorough investigation of this matter was conducted. Work has begun to replace certain key components of the generator in order to return the energy center to service. Ameren Missouri expects generator repairs of $65 million, which are expected to be largely capital expenditures. Due to the long lead time for the manufacture, repair, and installation of the components, the energy center is expected to return to service in late June or early July 2021. Ameren Missouri will evaluate all of its options for losses, including the applicability of insurance coverages. See below for additional information about Ameren Missouri’s insurance coverage for the Callaway Energy Center.

Spent Nuclear Fuel

Under the Nuclear Waste Policy Act of 1982, as amended, the DOE is responsible for disposing of spent nuclear fuel from the Callaway Energy Center and other commercial nuclear energy centers. As required by the act, Ameren Missouri and other utilities have entered into standard contracts with the DOE, which stated that the DOE would begin to dispose of spent nuclear fuel by 1998. However, the DOE failed to fulfill its disposal obligations, and Ameren Missouri and other nuclear energy center owners sued the DOE to recover costs incurred for

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ongoing storage of their spent fuel. Ameren Missouri’s lawsuit against the DOE resulted in a settlement agreement that provides for annual reimbursement of additional spent fuel storage and related costs. Ameren Missouri received immaterial reimbursements from the DOE in the years ended December 31, 2020, 2019, and 2018. Ameren Missouri will continue to apply for reimbursement from the DOE for allowable costs associated with the ongoing storage of spent fuel. The DOE’s delay in carrying out its obligation to dispose of spent nuclear fuel from the Callaway Energy Center is not expected to adversely affect the continued operations of the energy center.

Decommissioning

Electric rates charged to customers provide for the recovery of the Callaway Energy Center’s decommissioning costs, which include decontamination, dismantling, and site restoration costs, over the expected life of the nuclear energy center. Amounts collected from customers are deposited into the external nuclear decommissioning trust fund to provide for the Callaway Energy Center’s decommissioning. It is assumed that the Callaway Energy Center site will be decommissioned after its retirement through the immediate dismantlement method and removed from service. The Callaway Energy Center’s operating license expires in 2044. Ameren and Ameren Missouri have recorded an ARO for the Callaway Energy Center decommissioning costs at fair value, which represents the present value of estimated future cash outflows. Annual decommissioning costs of $7 million are included in the costs used to establish electric rates for Ameren Missouri’s customers. Every three years, the MoPSC requires Ameren Missouri to file an updated cost study and funding analysis for decommissioning its Callaway Energy Center. An updated cost study and funding analysis was filed with the MoPSC in November 2020 and reflected within the ARO. Ameren Missouri’s filing supported no change in electric service rates for decommissioning costs. There is no deadline by which the MoPSC must issue an order regarding the filing.

Ameren and Ameren Missouri have classified the investments in debt and equity securities that are held in the nuclear decommissioning trust fund as available for sale, and have recorded all such investments at their fair market value at December 31, 2020 and 2019. Investments in the nuclear decommissioning trust fund have a target allocation of 60% to 70% in equity securities, with the balance invested in debt securities.

The fair value of the trust fund for Ameren Missouri’s Callaway Energy Center is reported as “Nuclear decommissioning trust fund” in Ameren’s and Ameren Missouri’s balance sheets. This amount is legally restricted and may be used only to fund the costs of nuclear decommissioning. Changes in the fair value of the trust fund are recorded as an increase or decrease to the nuclear decommissioning trust fund, with an offsetting adjustment to the regulatory liability related to AROs. This reporting is consistent with the method used to account for the decommissioning costs recovered in rates. See Note 2 – Rate and Regulatory Matters for the regulatory liability recorded at December 31, 2020. If the assumed return on trust assets is not earned, Ameren Missouri believes that it is probable that any additional funding requirements resulting from such earnings deficiency will be recovered in customer rates.

The following table presents proceeds from the sale and maturities of investments in Ameren Missouri’s nuclear decommissioning trust fund and the gross realized gains and losses resulting from those sales for the years ended December 31, 2020, 2019, and 2018:


	2020		2019		2018
Proceeds from sales and maturities	$	183	$	260	$	299
Gross realized gains	10		10		18
Gross realized losses	3		2		5

The following table presents the cost and fair value of investments in debt and equity securities in Ameren’s and Ameren Missouri’s nuclear decommissioning trust fund at December 31, 2020 and December 31, 2019:


Security Type	Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
2020
Debt securities	$	272	$	25	$	—	$	297
Equity securities	198		491		9		680
Cash and cash equivalents	4		—		—		4
Other(a)	1		—		—		1
Total	$	475	$	516	$	9	$	982
2019
Debt securities	$	262	$	11	$	—	$	273
Equity securities	183		393		7		569
Cash and cash equivalents	26		—		—		26
Other(a)	(21)		—		—		(21)
Total	$	450	$	404	$	7	$	847

(a)Represents net receivables and payables relating to pending securities sales, interest, and securities purchases.

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The following table presents the costs and fair values of investments in debt securities in Ameren’s and Ameren Missouri’s nuclear decommissioning trust fund according to their contractual maturities at December 31, 2020:


	Cost		Fair Value
Less than 5 years	$	120	$	123
5 years to 10 years	69		75
Due after 10 years	83		99
Total	$	272	$	297

Insurance

The following table presents insurance coverage at Ameren Missouri’s Callaway Energy Center at December 31, 2020:


Type and Source of Coverage	Most Recent Renewal Date	Maximum Coverages			Maximum Assessments for Single Incidents
Public liability and nuclear worker liability:
American Nuclear Insurers	January 1, 2021	$	450		$	—
Pool participation	(a)	13,348		(a)	138		(b)
		$	13,798	(c)	$	138
Property damage:
NEIL and EMANI	April 1, 2020	$	3,200	(d)	$	25	(e)
Replacement power:
NEIL	April 1, 2020	$	490	(f)	$	7	(e)

(a)Provided through mandatory participation in an industrywide retrospective premium assessment program. The maximum coverage available is dependent on the number of United States commercial reactors participating in the program.

(b)Retrospective premium under the Price-Anderson Act. This is subject to retrospective assessment with respect to a covered loss in excess of $450 million in the event of an incident at any licensed United States commercial reactor, payable at $21 million per year.

(c)Limit of liability for each incident under the Price-Anderson liability provisions of the Atomic Energy Act of 1954, as amended. This limit is subject to change to account for the effects of inflation and changes in the number of licensed power reactors.

(d)NEIL provides $2.7 billion in property damage, stabilization, decontamination, and premature decommissioning insurance for radiation events and $2.3 billion in property damage insurance for nonradiation events. EMANI provides $490 million in property damage insurance for both radiation and nonradiation events.

(e)All NEIL-insured plants could be subject to assessments should losses exceed the accumulated funds from NEIL.

(f)Provides replacement power cost insurance in the event of a prolonged accidental outage. Weekly indemnity up to $4.5 million for 52 weeks, which commences after the first 12 weeks of an outage, plus up to $3.6 million per week for a minimum of 71 weeks thereafter for a total not exceeding the policy limit of $490 million. Nonradiation events are limited to $328 million.

The Price-Anderson Act is a federal law that limits the liability for claims from an incident involving any licensed United States commercial nuclear energy center. The limit is based on the number of licensed reactors. The limit of liability and the maximum potential annual payments are adjusted at least every five years for inflation to reflect changes in the Consumer Price Index. The most recent five-year inflationary adjustment became effective in November 2018. Owners of a nuclear reactor cover this exposure through a combination of private insurance and mandatory participation in a financial protection pool, as established by the Price-Anderson Act.

Losses resulting from terrorist attacks on nuclear facilities insured by NEIL are subject to industrywide aggregates, such that terrorist acts against one or more commercial nuclear power plants within a stated time period would be treated as a single event, and the owners of the nuclear power plants would share the limit of liability. NEIL policies have an aggregate limit of $3.2 billion within a 12-month period for radiation events, or $1.8 billion for events not involving radiation contamination, resulting from terrorist attacks. The EMANI policies are not subject to industrywide aggregates in the event of terrorist attacks on nuclear facilities.

If losses from a nuclear incident at the Callaway Energy Center exceed the limits of, or are not covered by insurance, or if coverage is unavailable, Ameren Missouri is at risk for any uninsured losses. If a serious nuclear incident were to occur, it could have a material adverse effect on Ameren’s and Ameren Missouri’s results of operations, financial position, or liquidity.

NOTE 10 – RETIREMENT BENEFITS

The primary objective of the Ameren pension and postretirement benefit plans is to provide eligible employees with pension and postretirement health care and life insurance benefits. Ameren has defined benefit pension plans covering substantially all of its employees and has a postretirement benefit plan covering non-union employees hired before October 2015 and union employees hired before January 2020. Ameren Missouri and Ameren Illinois each participate in Ameren’s single-employer pension and other postretirement plans. All non-union employees participate in a cash balance pension plan. Ameren Missouri union employees hired after July 1, 2013, and Ameren Illinois union employees hired after October 15, 2012, participate in a cash balance pension plan. Ameren uses a measurement date of December 31 for its pension and postretirement benefit plans. Ameren’s qualified pension plan is the Ameren Retirement Plan. Ameren’s other postretirement plan is the Ameren Retiree Welfare Benefit Plan. Ameren also has an unfunded nonqualified pension plan, the Ameren

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Supplemental Retirement Plan, which is available to provide certain management employees and retirees with a supplemental benefit when their qualified pension plan benefits are capped in compliance with Internal Revenue Code limitations. Only Ameren subsidiaries participate in the plans listed above.

Ameren’s pension and other postretirement benefit plans were overfunded by $249 million in the aggregate as of December 31, 2020. Ameren’s total unfunded obligation under its pension and other postretirement benefit plans was $216 million as of December 31, 2019. These net assets and liabilities are recorded in “Other assets,” “Other current liabilities,” and “Pension and other postretirement benefits” on Ameren’s consolidated balance sheet. The increase in the overfunded pension and postretirement benefit plans during 2020 was primarily the result of an increase in the return on plan assets of the pension and postretirement trusts offset by a 75 basis point decrease in the pension and other postretirement benefit plan discount rates used to determine the present value of the obligation. The overfunded pension and other postretirement benefit plans also resulted in regulatory liabilities on Ameren’s, Ameren Missouri’s, and Ameren Illinois’ balance sheets.

The following table presents the net benefit liability/(asset) recorded on the balance sheets as of December 31, 2020 and December 31, 2019:


	2020		2019
Ameren(a)	$	(249)	$	216
Ameren Missouri(a)	(25)		142
Ameren Illinois(a)	(210)		(16)

(a)Assets associated with pension and other postretirement benefits are recorded in “Other assets” on the balance sheet.

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Ameren recognizes the overfunded and underfunded status of its pension and postretirement plans as an asset or a liability on its consolidated balance sheet, with offsetting entries to accumulated OCI and regulatory assets or liabilities. The following table presents the funded status of Ameren’s pension and postretirement benefit plans as of December 31, 2020 and December 31, 2019. It also provides the amounts included in regulatory assets or liabilities and accumulated OCI at December 31, 2020 and December 31, 2019, that have not been recognized in net periodic benefit costs.


	2020				2019
	Pension Benefits			Postretirement Benefits	Pension Benefits			Postretirement Benefits
Accumulated benefit obligation at end of year	$	5,213	$	(a)	$	4,735	$	(a)
Change in benefit obligation:
Net benefit obligation at beginning of year	$	4,967	$	1,110	$	4,459	$	1,034
Service cost	110			19	88			18
Interest cost	174			39	187			43
Plan amendments	—			—	—			2
Participant contributions	—			8	—			8
Actuarial loss	508			91	469			69

Benefits paid	(249)			(63)	(236)			(64)


Net benefit obligation at end of year	5,510			1,204	4,967			1,110
Change in plan assets:
Fair value of plan assets at beginning of year	4,564			1,297	3,899			1,113
Actual return on plan assets	1,143			209	878			237
Employer contributions	52			2	23			3


Participant contributions	—			8	—			8


Benefits paid	(249)			(63)	(236)			(64)
Fair value of plan assets at end of year	5,510			1,453	4,564			1,297
Funded status – deficiency (surplus)	—			(249)	403			(187)
Accrued benefit cost (asset) at December 31	$	—	$	(249)	$	403	$	(187)
Amounts recognized in the balance sheet consist of:
Noncurrent asset(b)	$	(39)	$	(249)	$	—	$	(187)
Current liability(c)	2			—	2			—
Noncurrent liability	37			—	401			—
Net liability (asset) recognized	$	—	$	(249)	$	403	$	(187)
Amounts recognized in regulatory assets or liabilities consist of:
Net actuarial (gain) loss	$	(138)	$	(200)	$	244	$	(170)
Prior service credit	—			(37)	—			(41)

Amounts recognized in accumulated OCI (pretax) consist of:
Net actuarial loss	5			6	26			4

Total	$	(133)	$	(231)	$	270	$	(207)

(a)Not applicable.

(b)Included in “Other assets” on Ameren’s consolidated balance sheet.

(c)Included in “Other current liabilities” on Ameren’s consolidated balance sheet.

The following table presents the assumptions used to determine our benefit obligations at December 31, 2020 and 2019:


	Pension Benefits				Postretirement Benefits
	2020		2019		2020		2019
Discount rate at measurement date	2.75	%	3.50	%	2.75	%	3.50	%
Increase in future compensation	3.50		3.50		3.50		3.50
Cash balance pension plan interest crediting rate	5.00		5.00		(a)		(a)
Medical cost trend rate (initial)(b)	(a)		(a)		5.00		5.00
Medical cost trend rate (ultimate)(b)	(a)		(a)		5.00		5.00

(a)Not applicable.

(b)Initial and ultimate medical cost trend rate for certain Medicare-eligible participants is 3.00%.

Ameren determines discount rate assumptions by identifying a theoretical settlement portfolio of high-quality corporate bonds sufficient to provide for a plan’s projected benefit payments. The settlement portfolio of bonds is selected from a pool of more than 830 high-quality

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corporate bonds. A single discount rate is then determined; that rate results in a discounted value of the plan’s benefit payments that equates to the market value of the selected bonds. During 2020, Ameren adopted the updated Society of Actuaries mortality table and adopted the Society of Actuaries 2020 Mortality Improvement Scale. The updated mortality table reflects lower life expectancy in aggregate compared with the 2019 Society of Actuaries mortality table. The updated improvement scale assumes a lower rate of mortality improvement, compared with the 2019 Mortality Improvement Scale. The impact of the adoption of the table and the scale results in a decrease to our pension and other postretirement benefit obligations.

Funding

Pension benefits are based on the employees’ years of service, age, and compensation. Ameren’s pension plans are funded in compliance with income tax regulations, federal funding, and other regulatory requirements. As a result, Ameren expects to fund its pension plan at a level equal to the greater of the pension cost or the legally required minimum contribution. Based on its assumptions at December 31, 2020, its investment performance in 2020, and its pension funding policy, Ameren expects to make aggregate contributions of $60 million over the next five years. Ameren Missouri and Ameren Illinois estimate that their portion of the future funding requirements will be 30% and 60%, respectively. These estimates may change based on actual investment performance, changes in interest rates, changes in our assumptions, changes in government regulations, and any voluntary contributions. Our funding policy for postretirement benefits is primarily to fund the Voluntary Employee Beneficiary Association (VEBA) trusts to match the annual postretirement expense.

The following table presents the cash contributions made to our defined benefit retirement plans and to our postretirement plan during 2020, 2019, and 2018:


	Pension Benefits						Postretirement Benefits
	2020		2019		2018		2020		2019		2018
Ameren Missouri	$	17	$	3	$	18	$	1	$	1	$	1
Ameren Illinois	27		19		35		1		1		1
Other	8		1		7		—		1		—
Ameren	$	52	$	23	$	60	$	2	$	3	$	2

Investment Strategy and Policies

Ameren manages plan assets in accordance with the “prudent investor” guidelines contained in ERISA. The investment committee, which includes members of senior management, approves and implements investment strategy and asset allocation guidelines for the plan assets. The investment committee’s goals are twofold: first, to ensure that sufficient funds are available to provide the benefits at the time they are payable; and second, to maximize total return on plan assets and to minimize expense volatility consistent with its tolerance for risk. Ameren delegates the task of investment management to specialists in each asset class. As appropriate, Ameren provides each investment manager with guidelines that specify allowable and prohibited investment types. The investment committee 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 were 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 adjusted 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. Ameren will use an expected return on plan assets for its pension and postretirement plan assets of 6.50% in 2021.

Ameren’s investment committee strives to assemble a portfolio of diversified assets that does not create a significant concentration of risks. The investment committee develops asset allocation guidelines between asset classes, and it creates diversification through investments in assets that differ by type (equity, debt, real estate), duration, market capitalization, country, style (growth or value), and industry, among other factors. The diversification of assets is displayed in the target allocation table below. The investment committee also routinely rebalances the plan assets to adhere to the diversification goals. The investment committee’s strategy reduces the concentration of investment risk; however, Ameren is still subject to overall market risk.

Effective January 2020, Ameren’s investment committee developed and implemented a liability hedging investment strategy for its qualified pension plans designed to reduce interest rate risk as part of an objective for its long-term investment strategy. The plan invests in derivative instruments mainly consisting of interest rate futures intended to extend the duration of the pension plan assets so that the assets are more closely aligned with the duration of the liabilities. In addition, part of Ameren’s investment strategy includes participation in a securities lending program, which allows it to lend eligible securities to third party borrowers. All loans are collateralized by at least 102% of the loaned asset’s market value and the collateral is invested in the form of cash, government obligations, and U.S. agency obligations.

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Ameren’s fair value of securities loaned was $365 million and $246 million as of December 31, 2020, and 2019, respectively. Cash and securities obtained as collateral exceeded the fair value of the securities loaned as of December 31, 2020 and 2019.

The following table presents our target allocations for 2021 and our pension and postretirement plans’ asset categories as of December 31, 2020 and 2019:


Asset Category	Target Allocation 2020		Percentage of Plan Assets at December 31,
2020		2019
Pension Plan:
Cash and cash equivalents	0% – 5%		1	%	3	%
Equity securities:
U.S. large-capitalization	21% – 31%		26	%	27	%
U.S. small- and mid-capitalization	3% – 13%		9	%	7	%
International	9% – 19%		15	%	14	%
Global	3% – 13%		9	%	9	%
Total equity	51% – 61%		59	%	57	%
Debt securities	35% – 45%		36	%	36	%
Real estate	0% – 9%		4	%	4	%
Private equity	0% – 5%		(a)		(a)
Total			100	%	100	%
Postretirement Plans:
Cash and cash equivalents	0% – 7%		3	%	1	%
Equity securities:
U.S. large-capitalization	23% – 33%		31	%	31	%
U.S. small- and mid-capitalization	3% – 13%		8	%	9	%
International	9% – 19%		15	%	14	%
Global	5% – 15%		10	%	11	%
Total equity	55% – 65%		64	%	65	%
Debt securities	33% – 43%		33	%	34	%
Total			100	%	100	%

(a)Less than 1% of plan assets.

In general, the United States large-capitalization equity investments are passively managed or indexed, whereas the international, global, United States small-capitalization, and United States mid-capitalization equity investments are actively managed by investment managers. Debt securities include a broad range of fixed-income vehicles. Debt security investments in high-yield securities and non-United-States-dollar-denominated securities are owned by the plans, but in limited quantities to reduce risk. Most of the debt security investments are under active management by investment managers. Real estate investments include private real estate vehicles; however, Ameren does not, by policy, hold direct investments in real estate property. In addition to the derivative investments included in the liability hedging investment strategy described above, Ameren’s investment committee also allows investment managers to use derivatives, such as index futures, foreign exchange futures, and options, in certain situations to increase or to reduce market exposure in an efficient and timely manner.

Fair Value Measurements of Plan Assets

Investments in the pension and postretirement benefit plans were stated at fair value as of December 31, 2020. The fair value of an asset is the amount that would be received upon its sale in an orderly transaction between market participants at the measurement date. Cash and cash equivalents have initial maturities of three months or less and are recorded at cost plus accrued interest. Investments traded in active markets on national or international securities exchanges are valued at closing prices on the measurement date or, if that is not a business day, on the last business day before that date. Securities traded in over-the-counter markets are valued by quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. Investments measured under NAV as a practical expedient are based on the fair values of the underlying assets provided by the funds and their administrators. The fair value of real estate investments is based on NAV; it is determined by annual appraisal reports prepared by an independent real estate appraiser. Investments measured at NAV often provide for daily, monthly, or quarterly redemptions with 60 or less days of notice depending on the fund. For some funds, redemption may also require approval from the fund’s board of directors. Derivative contracts are valued at fair value, as determined by the investment managers (or independent third parties on behalf of the investment managers), who use proprietary models and take into consideration exchange quotations on underlying instruments, dealer quotations, and other market information.

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The following table sets forth, by level within the fair value hierarchy discussed in Note 8 – Fair Value Measurements, the pension plans’ assets measured at fair value and NAV as of December 31, 2020 and 2019:


	December 31, 2020								December 31, 2019
	Level 1		Level 2		NAV		Total			Level 1		Level 2		NAV		Total
Cash and cash equivalents	$	—	$	—	$	145	$	145		$	—	$	—	$	139	$	139
Equity securities:
U.S. large-capitalization	—		—		1,511		1,511			—		—		1,253		1,253
U.S. small- and mid-capitalization	513		—		—		513			344		—		—		344
International	375		—		492		867			296		—		363		659
Global	—		—		546		546			—		—		407		407
Debt securities:
Corporate bonds	—		506		17		523			—		597		13		610
Municipal bonds	—		50		—		50			—		75		—		75
U.S. Treasury and agency securities	3		1,325		—		1,328			5		1,010		—		1,015
Other	(5)		8		—		3			—		8		—		8
Real estate	—		—		208		208			—		—		211		211
Private equity	—		—		2		2			—		—		2		2
Total	$	886	$	1,889	$	2,921	$	5,696		$	645	$	1,690	$	2,388	$	4,723
Less: Medical benefit assets(a)							(219)									(176)
Plus: Net receivables(b)							33									17
Fair value of pension plans’ assets							$	5,510								$	4,564

(a)Medical benefit (health and welfare) component for accounts maintained in accordance with Section 401(h) of the Internal Revenue Code to fund a portion of the postretirement obligation.

(b)Receivables related to pending securities sales, offset by payables related to pending securities purchases.

The following table sets forth, by level within the fair value hierarchy discussed in Note 8 – Fair Value Measurements, the postretirement benefit plans’ assets measured at fair value and NAV as of December 31, 2020 and 2019:


	December 31, 2020								December 31, 2019
	Level 1		Level 2		NAV		Total			Level 1		Level 2		NAV		Total
Cash and cash equivalents	$	38	$	—	$	—	$	38		$	12	$	—	$	—	$	12
Equity securities:
U.S. large-capitalization	279		—		107		386			238		—		112		350
U.S. small- and mid-capitalization	104		—		—		104			93		—		—		93
International	75		—		107		182			59		—		102		161
Global	—		—		120		120			—		—		120		120

Debt securities:

Municipal bonds	—		106		—		106			—		107		—		107


Other	—		—		295		295			—		—		277		277
Total	$	496	$	106	$	629	$	1,231		$	402	$	107	$	611	$	1,120
Plus: Medical benefit assets(a)							219									176
Plus: Net receivables(b)							3									1
Fair value of postretirement benefit plans’ assets							$	1,453								$	1,297

(a)Medical benefit (health and welfare) component for accounts maintained in accordance with Section 401(h) of the Internal Revenue Code to fund a portion of the postretirement obligation. These 401(h) assets are included in the pension plan assets shown above.

(b)Receivables related to pending securities sales, offset by payables related to pending securities purchases.

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Net Periodic Benefit Cost

The following table presents the components of the net periodic benefit cost of Ameren’s pension and postretirement benefit plans during 2020, 2019, and 2018:


	Pension Benefits						Postretirement Benefits
	2020		2019		2018		2020		2019		2018
Service cost(a)	$	110	$	88	$	100	$	19	$	18	$	21
Non-service cost components:
Interest cost	174		187		169		39		43		40
Expected return on plan assets	(291)		(276)		(276)		(80)		(77)		(77)
Amortization of:

Prior service credit	(1)		(1)		(1)		(4)		(5)		(4)
Actuarial (gain) loss	60		25		68		(9)		(15)		(6)


Total non-service cost components(b)	$	(58)	$	(65)	$	(40)	$	(54)	$	(54)	$	(47)
Net periodic benefit cost (income)	$	52	$	23	$	60	$	(35)	$	(36)	$	(26)

(a) Service cost, net of capitalization, is reflected in “Operating Expenses - Other operations and maintenance” on Ameren’s statement of income.

(b) Non-service cost components are reflected in “Other Income, Net” on Ameren’s consolidated statement of income. See Note 6 – Other Income, Net for additional information.

The Ameren Companies are responsible for their share of the pension and postretirement benefit costs. The following table presents the pension costs and the postretirement benefit costs incurred for the years ended December 31, 2020, 2019, and 2018:


	Pension Costs						Postretirement Costs
	2020		2019		2018		2020		2019		2018
Ameren Missouri(a)	$	22	$	5	$	22	$	(5)	$	(6)	$	(1)
Ameren Illinois	32		20		39		(31)		(30)		(25)
Other	(2)		(2)		(1)		1		—		—
Ameren	$	52	$	23	$	60	$	(35)	$	(36)	$	(26)

(a)Does not include the impact of the tracker for the difference between the level of pension and postretirement benefit costs incurred by Ameren Missouri and the level of such costs included in customer rates.

The expected pension and postretirement benefit payments from qualified trust and company funds, which reflect expected future service, as of December 31, 2020, are as follows:


	Pension Benefits				Postretirement Benefits
	Paid from Qualified Trust Funds		Paid from Company Funds		Paid from Qualified Trust Funds		Paid from Company Funds
2021	$	260	$	2	$	58	$	2
2022	267		2		60		2
2023	274		3		61		2
2024	278		3		62		2
2025	283		3		61		2
2026 – 2030	1,454		12		303		11

The following table presents the assumptions used to determine net periodic benefit cost for our pension and postretirement benefit plans for the years ended December 31, 2020, 2019, and 2018:


	Pension Benefits						Postretirement Benefits
	2020		2019		2018		2020		2019		2018
Discount rate at measurement date	3.50	%	4.25	%	3.50	%	3.50	%	4.25	%	3.50	%
Expected return on plan assets	7.00		7.00		7.00		7.00		7.00		7.00
Increase in future compensation	3.50		3.50		3.50		3.50		3.50		3.50
Cash balance pension plan interest crediting rate	5.00		5.00		5.00		(a)		(a)		(a)
Medical cost trend rate (initial)(b)	(a)		(a)		(a)		5.00		5.00		5.00
Medical cost trend rate (ultimate)(b)	(a)		(a)		(a)		5.00		5.00		5.00

(a)Not applicable.

(b)Initial and ultimate medical cost trend rate for certain Medicare-eligible participants is 3.00%.

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The table below reflects the sensitivity of Ameren’s plans to potential changes in key assumptions for the year ended December 31, 2020:


	Pension Benefits						Postretirement Benefits
	Service Cost and Interest Cost		Expected Return on Assets		Projected Benefit Obligation		Service Cost and Interest Cost		Expected Return on Assets		Postretirement Benefit Obligation
0.25% decrease in discount rate	$	(1)	$	—	$	195	$	—	$	—	$	42
0.25% decrease in return on assets	—		10		—		—		3		—
0.25% increase in future compensation	2		—		20		—		—		—

Other

Ameren sponsors a 401(k) plan for eligible employees. The Ameren 401(k) plan covered all eligible Ameren employees at December 31, 2020. The plan allows employees to contribute a portion of their compensation in accordance with specific guidelines. Ameren matches a percentage of the employee contributions up to certain limits. The following table presents the portion of the matching contribution to the Ameren 401(k) plan attributable to each of the Ameren Companies for the years ended December 31, 2020, 2019, and 2018:


	2020		2019		2018
Ameren Missouri	$	20	$	19	$	17
Ameren Illinois	17		16		15
Other	1		—		1
Ameren	$	38	$	35	$	33

NOTE 11 – STOCK-BASED COMPENSATION

The 2014 Omnibus Incentive Compensation Plan is Ameren’s long-term stock-based compensation plan for eligible employees and directors. It provides for a maximum of 8 million common shares to be available for grant to eligible employees and directors. At December 31, 2020, there were 2.3 million common shares remaining for grant. Awards may be stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance share units, cash-based awards, and other stock-based awards. Ameren used newly issued shares to fulfill its stock-based compensation obligations for 2020, 2019, and 2018, and intends to use newly issued shares to fulfill its stock-based compensation obligations for 2021.

The following table summarizes Ameren’s nonvested performance share unit and restricted stock unit activity for the year ended December 31, 2020:


	Performance Share Units – Market Condition(a)			Performance Share Units – Performance Condition(b)			Restricted Stock Units
	Share Units	Weighted-average Fair Value per Share Unit		Shares	Weighted-average Fair Value per Share Unit		Stock Units	Weighted-average Fair Value per Stock Unit
Nonvested at January 1, 2020(c)	539,877	$	63.79	—	$	—	220,277	$	61.13
Granted(d)	267,154	82.49		43,052	76.69		173,571	76.91
Forfeitures	(16,303)	73.42		(1,155)	76.80		(7,507)	69.89
Vested and undistributed(e)	(178,802)	69.87		(7,607)	76.78		(80,180)	66.72
Vested and distributed	(147,787)	59.16		—	—		(2,466)	54.30
Performance share adjustment	—	—		(2,394)	76.66		—	—
Nonvested at December 31, 2020(f)	464,139	$	73.34	31,896	$	76.66	303,695	$	68.52

(a)The exact number of shares issued pursuant to a share unit varies from 0% to 200% of the target award, depending on actual company performance relative to the specified market conditions. Compensation cost on nonforfeited awards is recognized regardless of whether Ameren achieves the specified market conditions.

(b)The exact number of shares issued pursuant to a share unit varies from 0% to 200% of the target award, depending on actual company performance relative to the performance goals. Compensation cost is recognized ratably over the requisite service period only for awards for which it is probable that the performance condition will be satisfied. The performance share adjustment represents the change in the probability that a performance condition will be satisfied.

(c)Does not include 503,283 performance share units for market performance and 79,854 restricted stock units that were vested and undistributed.

(d)In September 2020, certain executive officers were granted an additional 37,104 restricted stock units with a grant date fair value of $3 million, which will vest after three years on September 17, 2023. The awards do not provide for pro rata vesting in connection with the executive officer’s retirement.

(e)Vested and undistributed units are awards that vest on a pro-rata basis due to attainment of retirement eligibility by certain employees, but have not yet been distributed. For vested and undistributed performance share units, the number of shares issued for retirement-eligible employees will vary depending on actual performance over the three-year performance period.

(f)Does not include 366,243 of performance share units for market performance, 7,607 of performance share units based on the achievement of renewable generation and energy storage installation targets, and 160,034 of restricted stock units that were vested and undistributed.

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Performance Share Units – Market Condition

A market condition performance share unit vests and entitles an employee to receive shares of Ameren common stock (plus accumulated dividends) if, at the end of the three-year performance period, certain specified market conditions have been met and if the individual remains employed by Ameren through the required vesting period. The vesting period for share units awarded extends beyond the three-year performance period to the payout date, which is approximately 38 months after the grant date. In the event of a participant’s death or retirement at age 55 or older with five years or more of service, awards vest on a pro-rata basis over the three-year performance period. The exact number of shares issued pursuant to a share unit varies from 0% to 200% of the target award, depending on actual company performance relative to the specified market conditions.

The fair value of each share unit is based on Ameren’s closing common share price at December 31st of the year prior to the award year and a Monte Carlo simulation. The Monte Carlo simulation is used to estimate expected share payout based on Ameren’s TSR for a three-year performance period relative to the designated peer group beginning January 1st of the award year. The simulation can produce a greater fair value for the share unit than the applicable closing common share price because it includes the weighted payout scenarios in which an increase in the share price has occurred. The significant assumptions used to calculate fair value also include a three-year risk-free rate, Ameren’s common stock volatility, volatility for the peer group, and Ameren’s attainment of a three-year average earnings per share threshold during the performance period. The following table presents the fair value of each share unit along with the significant assumptions used to calculate the fair value of each share unit for the years ended December 31, 2020, 2019, and 2018:


	2020	2019	2018
Fair value of share units awarded	$82.49	$67.42	$62.88

Three-year risk-free rate	1.62%	2.46%	1.98%
Ameren’s common stock volatility(a)	15%	17%	17%
Volatility range for the peer group(a)	14% – 28%	15% – 25%	15% – 23%

(a)Based on a historical period that is equal to the remaining term of the performance period as of the grant date.

Performance Share Units – Performance Condition

A performance condition share unit vests and entitles an employee to receive shares of Ameren common stock (plus accumulated dividends) if, at the end of the three-year performance period, Ameren has met the specified performance condition and if the individual remains employed by Ameren through the required vesting period. The vesting period for share units awarded extends beyond the three-year performance period to the payout date, which is approximately 38 months after the grant date. In the event of a participant’s death or retirement at age 55 or older with five years or more of service, awards vest on a pro-rata basis over the three-year performance period. The exact number of shares issued pursuant to a share unit varies from 0% to 200% of the target award, depending on actual performance conditions achieved. The specified performance condition is based on Ameren’s clean energy goals, specifically the achievement of renewable generation and energy storage installation targets. The grant-date fair value for an individual outcome of a performance condition is determined by Ameren’s closing common share price on the grant date.

Restricted Stock Units

Restricted stock units vest and entitle an employee to receive shares of Ameren common stock (plus accumulated dividends) if the individual remains employed with Ameren through the payment date of the awards. Generally, in the event of a participant’s death or retirement at age 55 or older with five years or more of service, awards vest on a pro-rata basis, except for retention RSUs that are periodically granted, which do not provide for pro rata vesting in connection with the employee’s retirement. The payout date of the awards is approximately 38 months after the grant date. The fair value of each restricted stock unit is determined by Ameren’s closing common share price on the grant date.

Stock-Based Compensation Expense

The following table presents the stock-based compensation expense for the years ended December 31, 2020, 2019, and 2018:


	2020		2019		2018
Ameren Missouri	$	5	$	4	$	4
Ameren Illinois	3		3		3
Other(a)	13		13		13
Ameren	21		20		20
Less income tax benefit	6		5		6
Stock-based compensation expense, net	$	15	$	15	$	14

(a)Represents compensation expense for employees of Ameren Services. These amounts are not included in the Ameren Missouri and Ameren Illinois amounts above.

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Ameren settled performance share units and restricted stock units of $58 million, $83 million, and $54 million for the years ended December 31, 2020, 2019, and 2018. There were no significant stock-based compensation costs capitalized during the years ended December 31, 2020, 2019, and 2018. As of December 31, 2020, total compensation cost of $34 million related to nonvested awards not yet recognized is expected to be recognized over a weighted-average period of 22 months.

For the years ended December 31, 2020, 2019, and 2018, excess tax benefits associated with the settlement of stock-based compensation awards reduced income tax expense by $8 million, $15 million, and $6 million, respectively.

NOTE 12 – INCOME TAXES

Missouri Income Tax Rate

In 2018, legislation modifying Missouri tax law was enacted to decrease the state’s corporate income tax rate from 6.25% to 4%, effective January 1, 2020. As a result, in 2018, Ameren’s and Ameren Missouri’s accumulated deferred tax balances were revalued, resulting in a net decrease of $122 million to their accumulated deferred tax liability, which was offset by a regulatory liability. Additionally, Ameren recorded an immaterial amount to income tax expense. As a result of the March 2020 rate order, the effect of this tax decrease was reflected in customer rates on April 1, 2020. This income tax decrease did not have a material impact on the net income of Ameren (parent) and nonregistrant subsidiaries.

The following table presents the principal reasons for the difference between the effective income tax rate and the federal statutory corporate income tax rate for the years ended December 31, 2020, 2019, and 2018:


	Ameren Missouri		Ameren Illinois		Ameren
2020
Federal statutory corporate income tax rate	21	%	21	%	21	%
Increases (decreases) from:
Amortization of excess deferred income taxes	(16)		(3)		(9)

Amortization of deferred investment tax credit	(1)		(1)		(1)
State tax	3		7		5




Stock-based compensation	—		—		(1)
Effective income tax rate	7	%	24	%	15	%
2019
Federal statutory corporate income tax rate	21	%	21	%	21	%
Increases (decreases) from:
Amortization of excess deferred income taxes	(11)		(4)		(7)

Amortization of deferred investment tax credit	(1)		—		(1)
State tax	5		7		6

Stock-based compensation	—		—		(1)




Effective income tax rate	14	%	24	%	18	%
2018
Federal statutory corporate income tax rate	21	%	21	%	21	%
Increases (decreases) from:
Amortization of excess deferred income taxes	(4)		(4)		(4)
Depreciation differences	—		(1)		—
Amortization of deferred investment tax credit	(1)		—		(1)
State tax	4		7		6
TCJA	1		1		1



Tax credits	(1)		—		—
Other permanent items	—		—		(1)
Effective income tax rate	20	%	24	%	22	%

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The following table presents the components of income tax expense for the years ended December 31, 2020, 2019, and 2018:


	Ameren Missouri		Ameren Illinois		Other		Ameren
2020
Current taxes:
Federal	$	14	$	12	$	(24)	$	2
State	3		(6)		8		5
Deferred taxes:
Federal	82		81		24		187
State	15		52		(10)		57
Amortization of excess deferred income taxes	(75)		(15)		(1)		(91)
Amortization of deferred investment tax credits	(5)		—		—		(5)
Total income tax expense	$	34	$	124	$	(3)	$	155
2019
Current taxes:
Federal	$	65	$	19	$	(88)	$	(4)
State	22		11		(14)		19
Deferred taxes:
Federal	37		66		82		185
State	5		29		25		59
Amortization of excess deferred income taxes	(56)		(15)		(1)		(72)
Amortization of deferred investment tax credits	(5)		—		—		(5)
Total income tax expense	$	68	$	110	$	4	$	182
2018
Current taxes:
Federal	$	104	$	4	$	(118)	$	(10)
State	29		6		(12)		23
Deferred taxes:
Federal	22		75		123		220
State	(2)		28		23		49
Amortization of excess deferred income taxes	(24)		(15)		(1)		(40)
Amortization of deferred investment tax credits	(5)		—		—		(5)
Total income tax expense	$	124	$	98	$	15	$	237

The following table presents the accumulated deferred income tax assets and liabilities recorded as a result of temporary differences and accumulated deferred investment tax credits at December 31, 2020 and 2019:


	Ameren Missouri		Ameren Illinois		Other		Ameren
2020
Accumulated deferred income taxes, net liability (asset):
Plant-related	$	2,112	$	1,559	$	205	$	3,876


Regulatory assets and liabilities, net	(285)		(207)		(23)		(515)
Deferred employee benefit costs	(58)		8		(54)		(104)

Tax carryforwards	(26)		(6)		(65)		(97)
Other	(35)		13		39		17
Total net accumulated deferred income tax liabilities (assets)	1,708		1,367		102		3,177
Accumulated deferred investment tax credits	34		—		—		34
Accumulated deferred income taxes and investment tax credits	$	1,742	$	1,367	$	102	$	3,211
2019
Accumulated deferred income taxes, net liability (asset):
Plant-related	$	2,000	$	1,423	$	193	$	3,616


Regulatory assets and liabilities, net	(310)		(214)		(24)		(548)
Deferred employee benefit costs	(59)		7		(59)		(111)

Tax carryforwards	(25)		(3)		(70)		(98)
Other	(33)		11		43		21
Total net accumulated deferred income tax liabilities (assets)	1,573		1,224		83		2,880
Accumulated deferred investment tax credits	39		—		—		39
Accumulated deferred income taxes and investment tax credits	$	1,612	$	1,224	$	83	$	2,919

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The following table presents the components of accumulated deferred income tax assets relating to net operating loss carryforwards, tax credit carryforwards, and charitable contribution carryforwards at December 31, 2020 and 2019:


	Ameren Missouri		Ameren Illinois		Other		Ameren
2020
Net operating loss carryforwards:

State(a)	$	—	$	3	$	4	$	7
Total net operating loss carryforwards	$	—	$	3	$	4	$	7
Tax credit carryforwards:
Federal(b)	$	26	$	3	$	54	$	83
State(c)	—		—		7		7

Total tax credit carryforwards	$	26	$	3	$	61	$	90
Charitable contribution carryforwards(c)	$	—	$	—	$	3	$	3
Valuation allowance(d)	—		—		(3)		(3)
Total charitable contribution carryforwards	$	—	$	—	$	—	$	—
2019




Tax credit carryforwards:
Federal	$	25	$	3	$	67	$	95
State	—		—		3		3

Total tax credit carryforwards	$	25	$	3	$	70	$	98
Charitable contribution carryforwards	$	—	$	—	$	3	$	3
Valuation allowance	—		—		(3)		(3)
Total charitable contribution carryforwards	$	—	$	—	$	—	$	—

(a)Will expire 2032.

(b)Will expire between 2030 and 2040.

(c)Will expire between 2021 and 2025.

(d)See Schedule II under Part IV, Item 15, in this report for information on changes in the valuation allowance.

Uncertain Tax Positions

As of December 31, 2020 and 2019, the Ameren Companies did not record any uncertain tax positions.

Ameren is a part of the IRS’s compliance assurance process program, which involves real-time review of compliance with federal income tax law. State income tax returns are generally subject to examination for a period of three years after filing. The state impact of any federal changes remains subject to examination by various states for up to one year after formal notification to the states. Ameren’s federal tax returns for the 2015, 2017, 2018, and 2019 tax years are open, but, at the time of this filing, the Ameren Companies do not have material income tax issues under examination, administrative appeals, or litigation.

Ameren Missouri has an uncertain tax position tracker. Under Missouri’s regulatory framework, uncertain tax positions do not reduce Ameren Missouri’s electric rate base. When an uncertain income tax position liability is resolved, the MoPSC requires, through the uncertain tax position tracker, the creation of a regulatory asset or regulatory liability to reflect the time value, with a return at the applicable WACC included in each of the electric rate orders in effect before the tax position was resolved, of the difference between the uncertain tax position liability that was excluded from rate base and the final tax liability. The resulting regulatory asset or liability will affect earnings in the year it is created. It will then be amortized over three years, beginning on the effective date of new rates established in the next electric service regulatory rate review.

NOTE 13 – RELATED-PARTY TRANSACTIONS

In the normal course of business, Ameren Missouri and Ameren Illinois engage in affiliate transactions. These transactions primarily consist of natural gas and power purchases and sales, services received or rendered, and borrowings and lendings. Transactions between Ameren’s subsidiaries are reported as affiliate transactions on their individual financial statements, but those transactions are eliminated in consolidation for Ameren’s consolidated financial statements, except as noted in Software Licensing Agreement discussion below. Below are the material related-party agreements.

Electric Power Supply Agreements

Ameren Illinois must acquire capacity and energy sufficient to meet its obligations to customers. Ameren Illinois uses periodic RFP processes, administered by the IPA and approved by the ICC, to contract capacity and energy on behalf of its customers. Ameren Missouri participates in the RFP process and has been a winning supplier for certain periods.

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Capacity Supply Agreements

In procurement events in 2020, Ameren Missouri contracted to supply a portion of Ameren Illinois’ capacity requirements for $3 million from June 2021 through May 2023.

Energy Product Agreements

Based on the outcome of IPA-administered procurement events, Ameren Missouri and Ameren Illinois have entered into energy product agreements by which Ameren Missouri agreed to sell, and Ameren Illinois agreed to purchase, a set amount of MWhs at a predetermined price over a specified period of time. The following table presents the specified performance period, price, and amount of MWhs included in the agreements:


IPA Procurement Event	Performance Period	MWh	Average Price per MWh
April 2017	March 2019 – May 2020	85,600	$	34
April 2018	June 2019 – September 2020	110,000	32
April 2019	January 2020 – December 2021	288,000	35
September 2019	April 2020 – November 2021	170,800	29
September 2020	September 2021 – November 2022	204,800	31

Collateral Postings

Under the terms of the Illinois energy product agreements entered into through RFP processes administered by the IPA, suppliers must post collateral under certain market conditions to protect Ameren Illinois in the event of nonperformance. The collateral postings are unilateral, which means that only the suppliers can be required to post collateral. Therefore, Ameren Missouri, as a winning supplier in the RFP process, may be required to post collateral. As of December 31, 2020 and 2019, there were no collateral postings required of Ameren Missouri related to the Illinois energy product agreements.

Interconnection Agreements

Ameren Missouri and Ameren Illinois are parties to an interconnection agreement that governs the connection of their respective transmission lines and other facilities used for the distribution of power. These agreements have no contractual expiration date, but may be terminated by either party with three years’ notice.

Ameren Missouri and ATXI are parties to an interconnection agreement that governs the connection of the High Prairie Renewable Energy Center to an ATXI transmission line that allows Ameren Missouri to distribute power generated from the High Prairie Renewable Energy Center. See Note 2 – Rate and Regulatory Matters for further information on the acquisition of the High Prairie Renewable Energy Center.

Support Services Agreements

Ameren Services provides support services to its affiliates. The costs of support services including wages, employee benefits, professional services, and other expenses, are based on, or are an allocation of, actual costs incurred. The support services agreement can be terminated at any time by the mutual agreement of Ameren Services and that affiliate or by either party with 60 days’ notice before the end of a calendar year.

In addition, Ameren Missouri and Ameren Illinois provide affiliates with access to their facilities for administrative purposes and with use of other assets. The costs of the rent and facility services and other assets are based on, or are an allocation of, actual costs incurred.

Ameren Missouri and Ameren Illinois also provide storm-related and miscellaneous support services to each other on an as-needed basis.

Transmission Services

Ameren Illinois receives transmission services from ATXI for its retail load.

Electric Transmission Maintenance and Construction Agreements

ATXI entered into separate agreements with Ameren Missouri and Ameren Illinois in which Ameren Missouri or Ameren Illinois, as applicable, may perform certain maintenance and construction services related to ATXI’s electric transmission assets.

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Money Pool

See Note 4 – Short-term Debt and Liquidity for a discussion of affiliate borrowing arrangements.

Software Licensing Agreement

In September 2019, Ameren Missouri purchased a license for advanced metering infrastructure software from Ameren Illinois. The amount of the $24 million cost-based transaction price over the $5 million remaining carrying value of the software was recorded as revenue by Ameren Illinois, with $14 million of revenue recorded at Ameren Illinois Electric Distribution and $5 million recorded at Ameren Illinois Natural Gas. The revenue recorded at Ameren Illinois Electric Distribution was reflected in formula ratemaking, which resulted in no impact to net income. Per authoritative accounting guidance for sales to rate-regulated entities, the revenue recognized by Ameren Illinois was not eliminated upon consolidation by Ameren. Ameren Missouri’s $24 million software investment is included in “Property, Plant, and Equipment, Net.”

Tax Allocation Agreement

See Note 1 – Summary of Significant Accounting Policies for a discussion of the tax allocation agreement. The following table presents the affiliate balances related to income taxes for Ameren Missouri and Ameren Illinois as of December 31, 2020 and December 31, 2019:


	2020				2019
	Ameren Missouri		Ameren Illinois		Ameren Missouri		Ameren Illinois
Income taxes payable to parent(a)	$	—	$	6	$	15	$	43
Income taxes receivable from parent(b)	9		15		15		17

(a)Included in “Accounts payable – affiliates” on the balance sheet.

(b)Included in “Accounts receivable – affiliates” on the balance sheet.

Capital Contributions

The following table presents cash capital contributions received from Ameren (parent) by Ameren Missouri and Ameren Illinois for the years ended December 31, 2020, 2019, and 2018:


	2020			2019			2018
Ameren Missouri(a)	$	491		$	124		$	45
Ameren Illinois	464		(a)	15		(a)	160

(a)Includes capital contributions made as a result of the tax allocation agreement.

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Effects of Related-party Transactions on the Statement of Income

The following table presents the impact on Ameren Missouri and Ameren Illinois of related-party transactions for the years ended December 31, 2020, 2019, and 2018. It is based primarily on the agreements discussed above and the money pool arrangements discussed in Note 4 – Short-term Debt and Liquidity.


Agreement	Income Statement Line Item			Ameren Missouri		Ameren Illinois
Ameren Missouri power supply agreements	Operating Revenues	2020	$	11	$	(a)
with Ameren Illinois		2019		3		(a)
		2018		11		(a)
Ameren Missouri and Ameren Illinois	Operating Revenues	2020		26		1
rent and facility services		2019		27		2
		2018		22		3
Ameren Missouri and Ameren Illinois miscellaneous	Operating Revenues	2020		3		1
support services and services provided to ATXI		2019		1		2
		2018		1		1
Ameren Missouri software licensing	Operating Revenues	2020		(a)		(a)
with Ameren Illinois		2019		(a)		19
		2018		(a)		(a)
Total Operating Revenues		2020	$	40	$	2
		2019		31		23
		2018		34		4
Ameren Illinois power supply	Purchased Power	2020	$	(a)	$	11
agreements with Ameren Missouri		2019		(a)		3
		2018		(a)		11
Ameren Missouri and Ameren Illinois	Purchased Power	2020		(a)		2
transmission services from ATXI		2019		(a)		2
		2018		(a)		1
Total Purchased Power		2020	$	(a)	$	13
		2019		(a)		5
		2018		(a)		12
Ameren Missouri and Ameren Illinois	Other Operations and	2020	$	(b)	$	4
rent and facility services	Maintenance	2019		2		5
		2018		3		6
Ameren Services support services	Other Operations and	2020		140		133
agreement	Maintenance	2019		135		127
		2018		136		126
Total Other Operations and		2020	$	140	$	137
Maintenance Expenses		2019		137		132
		2018		139		132
Money pool borrowings (advances)	(Interest Charges)	2020	$	(b)	$	(b)
	Other Income, Net	2019		(b)		(b)
		2018		1		(b)

(a)Not applicable.

(b)Amount less than $1 million.

NOTE 14 – COMMITMENTS AND CONTINGENCIES

We are involved in legal, tax, and regulatory proceedings before various courts, regulatory commissions, authorities, and governmental agencies with respect to matters that arise in the ordinary course of business, some of which involve substantial amounts of money. We believe that the final disposition of these proceedings, except as otherwise disclosed in the notes to our financial statements, will not have a material adverse effect on our results of operations, financial position, or liquidity.

See also Note 1 – Summary of Significant Accounting Policies, Note 2 – Rate and Regulatory Matters, Note 9 – Callaway Energy Center, Note 13 – Related-party Transactions, and Note 15 – Supplemental Information in this report.

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Other Obligations

To supply a portion of the fuel requirements of Ameren Missouri’s energy centers, Ameren Missouri has entered into various long-term commitments for the procurement of coal, natural gas, nuclear fuel, and methane gas. Ameren Missouri and Ameren Illinois also have entered into various long-term commitments for purchased power and natural gas for distribution. The table below presents our estimated minimum fuel, purchased power, and other commitments at December 31, 2020. Ameren’s and Ameren Illinois’ purchased power commitments include the Ameren Illinois agreements entered into as part of the IPA-administered power procurement process. Included in the Other column are minimum purchase commitments under contracts for equipment, design and construction, meter reading services, and service maintenance agreements related to Ameren Missouri’s High Prairie Renewable Energy Center, among other agreements, at December 31, 2020.


	Coal		Natural Gas(a)		Nuclear Fuel		Purchased Power(b)(c)(d)			Methane Gas		Other(e)		Total
Ameren:
2021	$	321	$	161	$	56	$	150	(f)	$	3	$	97	$	788
2022	194		111		12		64			3		29		413
2023	113		72		45		24			3		27		284
2024	94		31		26		7			3		25		186
2025	55		17		—		—			3		28		103
Thereafter	—		64		21		—			18		92		195
Total	$	777	$	456	$	160	$	245		$	33	$	298	$	1,969
Ameren Missouri:
2021	$	321	$	44	$	56	$	—		$	3	$	79	$	503
2022	194		40		12		—			3		30		279
2023	113		35		45		—			3		28		224
2024	94		15		26		—			3		26		164
2025	55		7		—		—			3		29		94
Thereafter	—		17		21		—			18		70		126
Total	$	777	$	158	$	160	$	—		$	33	$	262	$	1,390
Ameren Illinois:
2021	$	—	$	117	$	—	$	160	(f)	$	—	$	13	$	290
2022	—		71		—		67			—		—		138
2023	—		37		—		25			—		—		62
2024	—		16		—		7			—		—		23
2025	—		10		—		—			—		—		10
Thereafter	—		47		—		—			—		—		47
Total	$	—	$	298	$	—	$	259		$	—	$	13	$	570

(a)Includes amounts for generation and for distribution.

(b)The purchased power amounts for Ameren and Ameren Illinois exclude agreements for renewable energy credits through 2035 with various renewable energy suppliers due to the contingent nature of the payment amounts, with the exception of expected payments of $48 million through 2025.

(c)The purchased power amounts for Ameren and Ameren Missouri exclude a 102-MW power purchase agreement with a wind farm operator, which expires in 2024, due to the contingent nature of the payment amounts.

(d)The purchased power amounts for Ameren exclude obligations resulting from capacity supply and energy product agreements between Ameren Missouri and Ameren Illinois, as disclosed in Note 13 – Related-party Transactions.

(e)The other amounts for Ameren exclude obligations resulting from interconnection agreements between Ameren Missouri and ATXI, as disclosed in Note 13 – Related-party Transactions.

(f)In January 2018, as required by the FEJA, Ameren Illinois entered into agreements to acquire zero emission credits, through 2026. Annual zero emission credit commitment amounts will be published by the IPA each May prior to the start of the subsequent planning year, which begins each June. The amounts above reflect Ameren Illinois’ commitment to acquire approximately $26 million of zero emission credits through May 2021.

Environmental Matters

Our electric generation, transmission, and distribution operations and natural gas transmission, distribution, and storage operations must comply with a variety of environmental laws that are enforced through statutory and regulatory requirements including permitting programs implemented by federal, state, and local authorities. Depending upon the business activity of specific facilities, such laws address emissions; discharges to water bodies; the storage, handling and disposal of hazardous substances and waste materials; siting and land use requirements; and potential ecological impacts. Complex and lengthy processes are required to obtain and renew approvals, permits, and licenses for new, existing, or modified facilities. Additionally, the use and handling of various chemicals or hazardous materials require release prevention plans and emergency response procedures. We employ dedicated personnel knowledgeable in environmental matters to ensure our business activities comply with regulatory requirements.

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Environmental regulations have a significant impact on the electric utility industry and compliance with these regulations could be costly for Ameren Missouri, which operates coal-fired power plants. Clean Air Act regulations that apply to the electric utility industry include the NSPS, the CSAPR, the MATS, and the National Ambient Air Quality Standards, which are subject to periodic review for certain pollutants. Collectively, these regulations cover a variety of pollutants, such as SO2, particulate matter, NOx, mercury, toxic metals, and acid gases, and CO2 emissions from new power plants. Clean Water Act regulations govern both water intake and discharges from power plants and require evaluation of the ecological and biological impact of our operations and could require modifications to water intake structures or more stringent limitations on wastewater discharges at Ameren Missouri’s energy centers. Depending upon the scope of modifications ultimately required by state regulators, these capital expenditures could be significant. The management and disposal of coal ash is regulated as a solid waste under the Resource Conservation and Recovery Act and the CCR rule, which require the closure of our surface impoundments at Ameren Missouri’s coal-fired energy centers. The individual or combined effects of existing and new environmental regulations could result in significant capital expenditures, increased operating costs, or the closure or alteration of operations at some of Ameren Missouri’s energy centers. Ameren and Ameren Missouri expect that such compliance costs would be recoverable through rates, subject to MoPSC prudence review, but the timing of costs and their recovery could be subject to regulatory lag.

Ameren and Ameren Missouri estimate that they will need to make capital expenditures of $175 million to $225 million from 2021 through 2025 in order to comply with existing environmental regulations. Additional environmental controls beyond 2025 could be required. This estimate of capital expenditures includes ash pond closure and corrective action measures required by the CCR regulations, potential modifications to cooling water intake structures at existing power plants under Clean Water Act rules, and by effluent limitation guidelines applicable to steam electric generating units, all of which are discussed below. This estimate does not include capital expenditures that may be required as a result of the NSR and Clean Air Act litigation discussed below. Ameren Missouri’s current plan for compliance with existing air emission regulations includes burning low-sulfur coal and installing new or optimizing existing air pollution control equipment. The actual amount of capital expenditures required to comply with existing environmental regulations may vary substantially from the above estimates because of uncertainty as to future permitting requirements made by state regulators and the EPA, potential revisions to regulatory obligations, and the cost of potential compliance strategies, among other things.

The following sections describe the more significant environmental laws and rules and environmental enforcement and remediation matters that affect or could affect our operations. The EPA has initiated an administrative review of several regulations and proposed amendments to regulations and guidelines, including to the effluent limitation guidelines and the CCR Rule, which could ultimately result in the revision of all or part of such rules.

Clean Air Act

Federal and state laws, including CSAPR, regulate emissions of SO2 and NOx through the reduction of emissions at their source and the use and retirement of emission allowances. CSAPR is implemented through a series of phases, and the second phase became effective in 2017. Additional emission reduction requirements may apply in subsequent years. To achieve compliance with the CSAPR, Ameren Missouri burns low-sulfur coal, operates two scrubbers at its Sioux Energy Center, and optimizes other existing air pollution control equipment. Ameren Missouri expects to incur additional costs to lower its emissions at one or more of its energy centers to comply with the CSAPR in future years. These higher costs are expected to be recovered from customers through the FAC or higher base rates.

CO**2 Emissions Standards

The EPA’s Affordable Clean Energy Rule repealed the Clean Power Plan and replaced it with a new rule that had established emission guidelines for states to follow in developing plans to limit CO2 emissions and identified certain efficiency measures as the best system of emission reduction for coal-fired electric generating units. In January 2021, the United States Court of Appeals for the District of Columbia Circuit vacated the Affordable Clean Energy Rule, and ruled that the EPA had the discretion to consider emission reduction measures that include efficiency measures and generation shifting to lower carbon emissions. Additional litigation including reconsideration by the entire United States Court of Appeals for the District of Columbia Circuit or an appeal to the United States Supreme Court is possible. Regardless of the outcome of such potential legal challenges, the EPA is likely to develop new regulations to address carbon emissions from coal and natural gas electric generating units, which could take years to finalize. At this time, Ameren Missouri cannot predict the outcome of legal challenges or future rulemakings. As such, the impact on the results of operations, financial position, and liquidity of Ameren and Ameren Missouri is uncertain.

NSR and Clean Air Act Litigation

In January 2011, the Department of Justice, on behalf of the EPA, filed a complaint against Ameren Missouri in the United States District Court for the Eastern District of Missouri alleging that in performing projects at its coal-fired Rush Island Energy Center in 2007 and 2010, Ameren Missouri violated provisions of the Clean Air Act and Missouri law. In January 2017, the district court issued a liability ruling and, in September 2019, entered a final order that required Ameren Missouri to install a flue gas desulfurization system at the Rush Island Energy Center and a dry sorbent injection system at the Labadie Energy Center. There were no fines in the order. In October 2019, Ameren Missouri appealed the district court’s ruling to the United States Court of Appeals for the Eighth Circuit. The district court has stayed implementation of

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the majority of the requirements of its order while the case is under appeal. Ameren Missouri believes that the district court both misinterpreted and misapplied the law in its ruling. In December 2020, the court of appeals heard oral arguments presented by the parties. Ameren Missouri is unable to predict the ultimate resolution of this matter. The court is under no deadline to issue a ruling in this case; however, Ameren Missouri expects a ruling during 2021.

The ultimate resolution of this matter could have a material adverse effect on the results of operations, financial position, and liquidity of Ameren and Ameren Missouri. Among other things and subject to economic and regulatory considerations, resolution of this matter could result in increased capital expenditures for the installation of air pollution control equipment, as well as increased operations and maintenance expenses. Based upon engineering studies from October 2019, capital expenditures to comply with the district court’s order for installation of a flue gas desulfurization system at the Rush Island Energy Center are estimated at approximately $1 billion. Further, the flue gas desulfurization system would result in additional operation and maintenance expenses of $30 million to $50 million annually for the life of the energy center. Engineering studies required to develop estimated capital expenditures and estimated additional operation and maintenance expenses for the Labadie Energy Center to comply with the district court’s order will not be undertaken while the case is under appeal. As a result of the district court’s stay, Ameren Missouri does not expect to make significant capital expenditures or incur operations and maintenance expenses related to the district court’s order while the case is under appeal.

Clean Water Act

The EPA’s Section 316(b) Rule requires power plant operators to evaluate cooling water intake structures and identify measures for reducing the number of aquatic organisms impinged on a power plant’s cooling water intake screens or entrained through the plant’s cooling water system. All of Ameren Missouri’s coal-fired and nuclear energy centers are subject to the cooling water intake structures rule. Requirements of the rule are being implemented through the permit renewal process of each energy center’s water discharge permit, which is expected to be completed by 2023.

In 2015, the EPA issued a rule to revise the effluent limitation guidelines applicable to steam electric generating units. These guidelines established national standards for water discharges, prohibits effluent discharges of certain waste streams, and imposes more stringent limitations on certain water discharges from power plants. To meet the requirements of the guidelines, Ameren Missouri installed dry ash handling systems and completed construction of wastewater treatment facilities at three of its four coal-fired energy centers in 2020. The Meramec Energy Center, which is the fourth coal-fired energy center and is scheduled to close permanently in 2022, will not have new wastewater and dry ash handling systems. Estimated capital expenditures to complete these projects are included in the CCR management compliance plan, discussed below.

CCR Management

The EPA’s CCR rule establishes requirements for the management and disposal of CCR from coal-fired power plants and will result in the closure of surface impoundments at Ameren Missouri’s energy centers. Ameren Missouri is in the process of closing surface impoundments at three facilities, and is scheduled to complete the last of such closures at all of its energy centers in 2023. While the EPA has issued a series of revisions to the CCR rule, none of those revisions or proposals is expected to materially impact our closure schedule. Ameren and Ameren Missouri have AROs of $111 million recorded on their respective balance sheets as of December 31, 2020, associated with CCR storage facilities. Ameren Missouri estimates it will need to make total capital expenditures of $75 million to $100 million from 2021 through 2025 to implement its CCR management compliance plan, which includes installation of dry ash handling systems, wastewater treatment facilities, and groundwater monitoring equipment.

Remediation

The Ameren Companies are involved in a number of remediation actions to clean up sites impacted by the use or disposal of materials containing hazardous substances. Federal and state laws can require responsible parties to fund remediation regardless of their degree of fault, the legality of original disposal, or the ownership of a disposal site.

As of December 31, 2020, Ameren Illinois has remediated the majority of the 44 former MGP sites in Illinois it owned or for which it was otherwise responsible. Ameren Illinois estimates it could substantially conclude remediation efforts at the remaining sites by 2023. The ICC allows Ameren Illinois to recover such remediation and related litigation costs from its electric and natural gas utility customers through environmental cost riders. Costs are subject to annual prudence review by the ICC. As of December 31, 2020, Ameren Illinois estimated the remaining obligation related to these former MGP sites at $94 million to $157 million. Ameren and Ameren Illinois recorded a liability of $94 million to represent the estimated minimum obligation for these sites, as no other amount within the range was a better estimate.

The scope of the remediation activities at these former MGP sites may increase as remediation efforts continue. Considerable uncertainty remains in these estimates because many site-specific factors can influence the ultimate actual costs, including unanticipated underground structures, the degree to which groundwater is encountered, regulatory changes, local ordinances, and site accessibility. The actual costs and timing of completion may vary substantially from these estimates.

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Our operations or those of our predecessor companies involve the use of, disposal of, and, in appropriate circumstances, the cleanup of substances regulated under environmental laws. We are unable to determine whether such practices will result in future environmental commitments or will affect our results of operations, financial position, or liquidity.

NOTE 15 – SUPPLEMENTAL INFORMATION

Cash, Cash Equivalents, and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheets and the statements of cash flows as of December 31, 2020 and 2019:


	December 31, 2020							December 31, 2019
Ameren	Ameren Missouri		Ameren Illinois				Ameren	Ameren Missouri		Ameren Illinois
Cash and cash equivalents	$	139	$	136	$	—		$	16	$	9	$	—
Restricted cash included in “Other current assets”	17		5		6			14		4		5
Restricted cash included in “Other assets”	141		—		141			120		—		120
Restricted cash included in “Nuclear decommissioning trust fund”	4		4		—			26		26		—
Total cash, cash equivalents, and restricted cash	$	301	$	145	$	147		$	176	$	39	$	125

Restricted cash included in “Other current assets” primarily represents funds held by an irrevocable Voluntary Employee Beneficiary Association (VEBA) trust, which provides health care benefits for active employees. Restricted cash included in “Other assets” on Ameren’s and Ameren Illinois’ balance sheets primarily represents amounts collected under a cost recovery rider that are restricted for use in the procurement of renewable energy credits and amounts in a trust fund restricted for the use of funding certain asbestos-related claims.

Accounts Receivable

“Accounts receivable – trade” on Ameren’s and Ameren Illinois’ balance sheets include certain receivables purchased at a discount from alternative retail electric suppliers that elect to participate in the utility consolidated billing program. At December 31, 2020 and 2019, “Other current liabilities” on Ameren’s and Ameren Illinois’ balance sheets included payables for purchased receivables of $28 million and $32 million, respectively.

The following table provides a reconciliation of the beginning and ending amount of the allowance for doubtful accounts for the years ended December 31, 2020 and 2019:


	December 31, 2020						December 31, 2019
	Ameren Missouri		Ameren Illinois(a)		Ameren		Ameren Missouri		Ameren Illinois(a)		Ameren
Beginning of period	$	7	$	10	$	17	$	7	$	11	$	18
Bad debt expense	15		33		48		9		21		30

Net write-offs	(6)		(9)		(15)		(9)		(22)		(31)
End of period	$	16	$	34	$	50	$	7	$	10	$	17

(a)Ameren Illinois has riders that allow it to recover the difference between its actual net bad debt write-offs under GAAP, including those associated with receivables purchased from alternative retail electric suppliers, and the amount of net bad debt write-offs included in its base rates. In 2020, the rider for electric distribution allows for recovery of bad debt expense recognized under GAAP. See Note 2 – Rate and Regulatory Matters for additional information.

Net write-offs decreased for the year ended December 31, 2020 due to the temporary suspension of disconnecting customers for nonpayment. See Note 2 – Rate and Regulatory Matters for additional information.

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Inventories

The following table presents the components of inventories for each of the Ameren Companies at December 31, 2020 and 2019:


	December 31, 2020						December 31, 2019
	Ameren Missouri		Ameren Illinois		Ameren		Ameren Missouri		Ameren Illinois		Ameren
Fuel(a)	$	115	$	—	$	115	$	126	$	—	$	126
Natural gas stored underground	5		52		57		6		57		63
Materials, supplies, and other	266		83		349		241		64		305
Total inventories	$	386	$	135	$	521	$	373	$	121	$	494

(a)Consists of coal, oil, and propane.

Asset Retirement Obligations

The following table provides a reconciliation of the beginning and ending carrying amount of AROs for the years ended December 31, 2020 and 2019:


	December 31, 2020									December 31, 2019
	Ameren Missouri			Ameren Illinois			Ameren				Ameren Missouri			Ameren Illinois			Ameren
Beginning balance at January 1	$	687		$	4	(a)	$	691	(b)		$	646		$	4		$	650
Liabilities incurred	36		(c)	—			36		(c)		—			—			—
Liabilities settled	(58)			—			(58)				(20)			—			(20)
Accretion(d)	29			1			30				28			—			28
Change in estimates	57		(e)	—			57		(e)		33		(f)	—			33		(f)
Ending balance at December 31	$	751	(g)	$	5	(a)	$	756	(b), (g)		$	687		$	4	(a)	$	691	(b)

(a)Included in “Other deferred credits and liabilities” on the balance sheet.

(b)Balance included $60 million and $53 million in “Other current liabilities” on the balance sheet as of both December 31, 2020 and 2019, respectively.

(c)In December 2020, Ameren Missouri recorded an ARO related to the decommissioning for the High Prairie Renewable Energy Center.

(d)Accretion expense attributable to Ameren Missouri and Ameren Illinois was recorded as a decrease to regulatory liabilities and an increase to regulatory assets, respectively.

(e)Ameren Missouri changed its fair value estimate primarily due to an update to the decommissioning of the Callaway Energy Center to reflect the cost study and funding analysis filed with the MoPSC in November 2020 and an increase in the cost estimate for closure of certain CCR storage facilities.

(f)Ameren Missouri changed its fair value estimate primarily due to an increase in the cost estimate for closure of certain CCR storage facilities.

(g)The balance as of December 31, 2020, includes an ARO related to the decommissioning of the Callaway Enter Center of $549 million.

Noncontrolling Interests

As of December 31, 2020 and 2019, Ameren’s noncontrolling interests included the preferred stock of Ameren Missouri and Ameren Illinois.

Deferred Compensation

As of December 31, 2020, and 2019, “Other current liabilities” and “Other deferred credits and liabilities” on Ameren’s balance sheet included deferred compensation obligations of $90 million and $86 million, respectively, recorded at the present value of future benefits to be paid.

Excise Taxes

Ameren Missouri and Ameren Illinois collect from their customers excise taxes, including municipal and state excise taxes and gross receipts taxes, that are levied on the sale or distribution of natural gas and electricity. The following table presents the excise taxes recorded on a gross basis in “Operating Revenues – Electric,” “Operating Revenues – Natural gas” and “Operating Expenses – Taxes other than income taxes” on the statements of income for the years ended December 31, 2020, 2019, and 2018:


	2020		2019		2018
Ameren Missouri	$	139	$	147	$	164
Ameren Illinois	115		117		118
Ameren	$	254	$	264	$	282

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Allowance for Funds Used During Construction

The following table presents the average rate that was applied to eligible construction work in progress and the amounts of allowance for funds used during construction capitalized in 2020, 2019, and 2018:


	2020			2019			2018
Average rate:
Ameren Missouri	5		%	6		%	7		%
Ameren Illinois	5		%	5		%	5		%
Ameren:
Allowance for equity funds used during construction	$	32		$	28		$	36
Allowance for borrowed funds used during construction	16			20			21
Total Ameren	$	48		$	48		$	57
Ameren Missouri:
Allowance for equity funds used during construction	$	19		$	19		$	27
Allowance for borrowed funds used during construction	10			12			14
Total Ameren Missouri	$	29		$	31		$	41
Ameren Illinois:
Allowance for equity funds used during construction	$	13		$	9		$	9
Allowance for borrowed funds used during construction	6			8			7
Total Ameren Illinois	$	19		$	17		$	16

Earnings per Share

Earnings per basic and diluted share are computed by dividing “Net Income Attributable to Ameren Common Shareholders” by the weighted-average number of basic and diluted common shares outstanding, respectively, during the applicable period. The weighted-average shares outstanding for earnings per diluted share includes the incremental effects resulting from performance share units, restricted stock units, and the forward sale agreement relating to common stock when the impact would be dilutive, as calculated using the treasury stock method. For information regarding performance share units and restricted stock units, see Note 11 – Stock-based Compensation. For information regarding the forward sale agreement, see Note 5 – Long-term Debt and Equity Financings.

The following table reconciles the weighted-average number of common shares outstanding to the diluted weighted-average number of common shares outstanding for the years ended December 31, 2020, 2019, and 2018:


	2020	2019	2018


Weighted-average Common Shares Outstanding – Basic	247.0	245.6	243.8
Assumed settlement of performance share units and restricted stock units	1.2	1.4	2.0
Dilutive effect of forward sale agreement	0.5	0.1	—
Weighted-average Common Shares Outstanding – Diluted(a)	248.7	247.1	245.8

(a)There were no potentially dilutive securities excluded from the earnings per diluted share calculations for the years ended December 31, 2020, 2019, and 2018.

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Supplemental Cash Flow Information

The following table provides noncash financing and investing activity excluded from the statements of cash flows for the years ended December 31, 2020, 2019, and 2018:


	December 31, 2020							December 31, 2019							December 31, 2018
Ameren	Ameren Missouri				Ameren Illinois			Ameren	Ameren Missouri		Ameren Illinois				Ameren	Ameren Missouri		Ameren Illinois
Investing


Accrued capital expenditures	$	400	$	183		$	218		$	333	$	140	$	163		$	272	$	121	$	138
Accrued nuclear fuel expenditures	—		—			—			19		19		—			20		20		—
Accrued wind generation expenditures	46		46			—			—		—		—			—		—		—
Net realized and unrealized gain (loss) – nuclear decommissioning trust fund	116		116			—			143		143		—			(38)		(38)		—
Exchange of bond investments for the extinguishment of senior unsecured notes(a)	—		—			—			17		—		17			—		—		—
Financing
Issuance of common stock for stock-based compensation	$	38	$	—		$	—		$	54	$	—	$	—		$	35	$	—	$	—
Exchange of bond investments for the extinguishment of senior unsecured notes(a)	—		—			—			(17)		—		(17)			—		—		—

(a)See Note 5 – Long-term Debt and Equity Financings for additional information.

NOTE 16 – SEGMENT INFORMATION

Ameren has four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. The Ameren Missouri segment includes all of the operations of Ameren Missouri. Ameren Illinois Electric Distribution consists of the electric distribution business of Ameren Illinois. Ameren Illinois Natural Gas consists of the natural gas business of Ameren Illinois. Ameren Transmission primarily consists of the aggregated electric transmission businesses of Ameren Illinois and ATXI. The category called Other primarily includes Ameren (parent) activities and Ameren Services.

Ameren Missouri has one segment. Ameren Illinois has three segments: Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Illinois Transmission. See Note 1 – Summary of Significant Accounting Policies for additional information regarding the operations of Ameren Missouri, Ameren Illinois, and ATXI.

Segment operating revenues and a majority of operating expenses are directly recognized and incurred by Ameren Illinois to each Ameren Illinois segment. Common operating expenses, miscellaneous income and expenses, interest charges, and income tax expense are allocated by Ameren Illinois to each Ameren Illinois segment based on certain factors, which primarily relate to the nature of the cost. Additionally, Ameren Illinois Transmission earns revenue from transmission service provided to Ameren Illinois Electric Distribution, other retail electric suppliers, and wholesale customers. The transmission expense for Illinois customers who have elected to purchase their power from Ameren Illinois is recovered through a cost recovery mechanism with no net effect on Ameren Illinois Electric Distribution earnings, as costs are offset by corresponding revenues. Transmission revenues from these transactions are reflected in Ameren Transmission’s and Ameren Illinois Transmission’s operating revenues. An intersegment elimination at Ameren and Ameren Illinois occurs to eliminate these transmission revenues and expenses.

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The following tables present information about the reported revenue and specified items reflected in net income attributable to common shareholders and capital expenditures by segment at Ameren and Ameren Illinois for the years ended December 31, 2020, 2019, and 2018. Ameren, Ameren Missouri, and Ameren Illinois management review segment capital expenditure information rather than any individual or total asset amount.

Ameren


	Ameren Missouri			Ameren Illinois Electric Distribution		Ameren Illinois Natural Gas		Ameren Transmission			Other		Intersegment Eliminations			Ameren
2020
External revenues	$	3,069		$	1,496	$	760	$	469		$	—	$	—		$	5,794
Intersegment revenues	40			2		—		54			—		(96)			—
Depreciation and amortization	604			288		81		98			4		—			1,075
Interest income	26			2		—		1			4		(4)			29
Interest charges	190			72		41		78		(a)	42		(4)			419
Income taxes (benefit)	34			42		36		78			(35)		—			155
Net income (loss) attributable to Ameren common shareholders	436			143		99		216			(23)		—			871
Capital expenditures	1,666		(b)	543		301		716			5		2			3,233		(b)

2019
External revenues	$	3,212		$	1,487	$	791	$	401		$	—	$	—		$	5,891
Intersegment revenues	31			17		6		63			—		(98)			19		(c)
Depreciation and amortization	556			273		78		84			4		—			995
Interest income	26			6		—		1			5		(5)			33
Interest charges	178			71		38		74		(a)	25		(5)			381
Income taxes (benefit)	68			45		30		64			(25)		—			182
Net income (loss) attributable to Ameren common shareholders	426			146		84		185			(13)		—			828
Capital expenditures	1,076			518		318		528			3		(32)		(d)	2,411

2018
External revenues	$	3,555		$	1,544	$	814	$	378		$	—	$	—		$	6,291
Intersegment revenues	34			3		1		55			—		(93)			—
Depreciation and amortization	550			259		65		77			4		—			955
Interest income	28			6		—		—			4		(5)			33
Interest charges	200			73		38		75		(a)	19		(4)			401
Income taxes (benefit)	124			41		25		56			(9)		—			237
Net income (loss) attributable to Ameren common shareholders	478			136		70		164			(33)		—			815
Capital expenditures	914			503		311		562			5		(9)			2,286

(a)Ameren Transmission interest charges include an allocation of financing costs from Ameren (parent).

(b)Includes $564 million at Ameren and Ameren Missouri for the acquisition of the High Prairie Renewable Energy Center for the year ended December 31, 2020.

(c)Intersegment revenues at Ameren include $14 million and $5 million of revenue from Ameren Illinois Electric Distribution and Ameren Illinois Natural Gas, respectively, for the year ended December 31, 2019, for a software licensing agreement with Ameren Missouri. Under authoritative accounting guidance for rate-regulated entities, the revenue recognized by Ameren Illinois was not eliminated upon consolidation. See Note 13 – Related-party Transactions for additional information.

(d)Intersegment capital expenditure eliminations include $24 million of eliminations for the year ended December 31, 2019, for a software licensing agreement between Ameren Illinois and Ameren Missouri. See Note 13 – Related-party Transactions for additional information.

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Ameren Illinois


	Ameren Illinois Electric Distribution		Ameren Illinois Natural Gas		Ameren Illinois Transmission		Intersegment Eliminations		Ameren Illinois
2020
External revenues	$	1,498	$	760	$	277	$	—	$	2,535
Intersegment revenues	—		—		52		(52)		—
Depreciation and amortization	288		81		65		—		434
Interest income	2		—		1		—		3
Interest charges	72		41		42		—		155
Income taxes	42		36		46		—		124
Net income available to common shareholder	143		99		137		—		379
Capital expenditures	543		301		603		—		1,447

2019
External revenues	$	1,504	$	797	$	226	$	—	$	2,527
Intersegment revenues	—		—		62		(62)		—
Depreciation and amortization	273		78		55		—		406
Interest income	6		—		—		—		6
Interest charges	71		38		38		—		147
Income taxes	45		30		35		—		110
Net income available to common shareholder	146		84		113		—		343
Capital expenditures	518		318		372		—		1,208

2018
External revenues	$	1,547	$	815	$	214	$	—	$	2,576
Intersegment revenues	—		—		53		(53)		—
Depreciation and amortization	259		65		50		—		374
Interest income	6		—		—		—		6
Interest charges	73		38		38		—		149
Income taxes	41		25		32		—		98
Net income available to common shareholder	136		70		98		—		304
Capital expenditures	503		311		444		—		1,258

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The following tables present disaggregated revenues by segment at Ameren and Ameren Illinois for the years ended December 31, 2020, 2019, and 2018. Economic factors affect the nature, timing, amount, and uncertainty of revenues and cash flows in a similar manner across customer classes. Revenues from alternative revenue programs have a similar distribution among customer classes as revenues from contracts with customers. Other revenues not associated with contracts with customers are presented in the Other customer classification, along with electric transmission and off-system revenues.

Ameren


	Ameren Missouri			Ameren Illinois Electric Distribution			Ameren Illinois Natural Gas			Ameren Transmission		Intersegment Eliminations		Ameren
2020
Residential	$	1,373		$	867		$	—		$	—	$	—	$	2,240
Commercial	1,025			486			—			—		—		1,511
Industrial	261			124			—			—		—		385
Other	325			21			—			523		(94)		775
Total electric revenues	$	2,984		$	1,498		$	—		$	523	$	(94)	$	4,911
Residential	$	76		$	—		$	541		$	—	$	—	$	617
Commercial	29			—			136			—		—		165
Industrial	4			—			14			—		—		18
Other	16			—			69			—		(2)		83
Total gas revenues	$	125		$	—		$	760		$	—	$	(2)	$	883
Total revenues(a)	$	3,109		$	1,498		$	760		$	523	$	(96)	$	5,794
2019
Residential	$	1,403		$	848		$	—		$	—	$	—	$	2,251
Commercial	1,157			497			—			—		—		1,654
Industrial	278			127			—			—		—		405
Other	271			32		(b)	—			464		(96)		671
Total electric revenues	$	3,109		$	1,504		$	—		$	464	$	(96)	$	4,981
Residential	$	81		$	—		$	570		$	—	$	—	$	651
Commercial	34			—			154			—		—		188
Industrial	4			—			13			—		—		17
Other	15			—			60		(b)	—		(2)		73
Total gas revenues	$	134		$	—		$	797		$	—	$	(2)	$	929
Total revenues(a)	$	3,243		$	1,504		$	797		$	464	$	(98)	$	5,910
2018
Residential	$	1,560		$	867		$	—		$	—	$	—	$	2,427
Commercial	1,271			511			—			—		—		1,782
Industrial	312			130			—			—		—		442
Other	308		(c)	39			—			433		(92)		688		(c)
Total electric revenues	$	3,451		$	1,547		$	—		$	433	$	(92)	$	5,339
Residential	$	90		$	—		$	581		$	—	$	—	$	671
Commercial	37			—			159			—		—		196
Industrial	4			—			17			—		—		21
Other	7			—			58			—		(1)		64
Total gas revenues	$	138		$	—		$	815		$	—	$	(1)	$	952
Total revenues(a)	$	3,589		$	1,547		$	815		$	433	$	(93)	$	6,291

(a)The following table presents increases/(decreases) in revenues from alternative revenue programs and other revenues not from contracts with customers for the years ended December 31, 2020, 2019, and 2018:

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	Ameren Missouri		Ameren Illinois Electric Distribution		Ameren Illinois Natural Gas		Ameren Transmission		Ameren
2020
Revenues from alternative revenue programs	$	(14)	$	(20)	$	20	$	50	$	36
Other revenues not from contracts with customers	25		8		2		1		36
2019
Revenues from alternative revenue programs	$	35	$	(74)	$	—	$	(31)	$	(70)
Other revenues not from contracts with customers	19		7		2		—		28
2018
Revenues from alternative revenue programs	$	(8)	$	(3)	$	(23)	$	(25)	$	(59)
Other revenues not from contracts with customers	24		16		2		—		42

(b)Includes $14 million and $5 million for Ameren Illinois Electric Distribution and Ameren Illinois Natural Gas, respectively, for the year ended December 31, 2019, for a software licensing agreement with Ameren Missouri. See Note 13 – Related-party Transactions for additional information.

(c)Includes $60 million for the year ended December 31, 2018, for the reduction to revenue for the excess amounts collected in rates to be refunded related to the TCJA from January 1, 2018, through July 31, 2018. See Note 2 – Rate and Regulatory Matters for additional information.

Ameren Illinois


	Ameren Illinois Electric Distribution			Ameren Illinois Natural Gas			Ameren Illinois Transmission		Intersegment Eliminations		Ameren Illinois
2020
Residential	$	867		$	541		$	—	$	—	$	1,408
Commercial	486			136			—		—		622
Industrial	124			14			—		—		138
Other	21			69			329		(52)		367
Total revenues(a)	$	1,498		$	760		$	329	$	(52)	$	2,535
2019
Residential	$	848		$	570		$	—	$	—	$	1,418
Commercial	497			154			—		—		651
Industrial	127			13			—		—		140
Other	32		(b)	60		(b)	288		(62)		318
Total revenues(a)	$	1,504		$	797		$	288	$	(62)	$	2,527
2018
Residential	$	867		$	581		$	—	$	—	$	1,448
Commercial	511			159			—		—		670
Industrial	130			17			—		—		147
Other	39			58			267		(53)		311
Total revenues(a)	$	1,547		$	815		$	267	$	(53)	$	2,576

(a)The following table presents increases/(decreases) in revenues from alternative revenue programs and other revenues not from contracts with customers for the Ameren Illinois segments for the years ended December 31, 2020, 2019, and 2018:


	Ameren Illinois Electric Distribution		Ameren Illinois Natural Gas		Ameren Illinois Transmission		Ameren Illinois
2020
Revenues from alternative revenue programs	$	(20)	$	20	$	42	$	42
Other revenues not from contracts with customers	8		2		—		10
2019
Revenues from alternative revenue programs	$	(74)	$	—	$	(33)	$	(107)
Other revenues not from contracts with customers	7		2		—		9
2018
Revenues from alternative revenue programs	$	(3)	$	(23)	$	(25)	$	(51)
Other revenues not from contracts with customers	16		2		—		18

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Previous: Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK · Next: Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE