ULNRC-06168, Enclosure 4 - 2013 Annual Report (Includes 2013 Form 10-K) - Ameren
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Enclosure 4 to ULNRC-06168
2013 ANNUAL REPORT (INCLUDES 2013 FORM 10-K) - AMEREN 44607_CvrA.indd 1-3 2/28/14 12:27 AM 44607_CvrA.indd 4-6 2/25/14 11:42 PM 3 3 3At Ameren, our regulated utilities power the economy and the quality of life for millions of people. Were focused on providing superior returns to our shareholders, safe and reliable energy to our region and excellent service to our customersnow and long into the future. Thats delivering value. CONTENTS 04 14 08 16 11 17 12 18Letter from the CEOExecutive Leadership TeamPositioned for GrowthOf" cers & Board of DirectorsReliable Service Now
& for the FutureFinancial HighlightsValue at the Meter &
BeyondAbout Ameren 44607_Eds.indd 3 3/3/14 9:32 AM 4 LETTER FROM THE CEOMy fellow shareholders:2013 was a pivotal year for Ameren Corporation. In " nalizing the divestiture of the companys merchant generation business, Ameren leadership took decisive action to reduce business risk and position your company for sustainable growth. Ameren has clari" ed its value proposition to investors by outlining a clear path forward. The companys strategy entails investing in its regulated businesses in a manner consistent with existing regulatory frameworks, working to enhance those frameworks and developing and executing on rate-regulated opportunities for future investment for the bene" t of customers and shareholders. By successfully executing this strategy, Ameren expects to continue meeting customers energy needs and expectations; earn fair returns on investments; and grow earnings and dividends.
// Ringing in the New Year: Ameren entered 2014 focused on its rate-regulated utilities, following the divestiture of its merchant generation business. To mark the occasion, Ameren CEO Tom Voss rang the Jan. 3 closing bell at the New York Stock Exchange.
(Also pictured, from left: Doug Fischer, Senior Director, Investor Relations; Marty Lyons, Executive Vice President and Chief Financial Of" cer; and Matt Thayer, Investor Relations Manager.)
44607_Eds.indd 4 3/3/14 9:32 AM 5EXECUTING ON OUR STRATEGYThroughout the past year, a primary focus has been to
r educe business risk. In December, Ameren completed the divestiture of its merchant generation business, Ameren Energy Resources, to an af" liate of Dynegy Inc.
The " nal milestone was reached in January 2014 with the sale of three merchant gas-" red energy centers to an af" liate of Rockland Capital, LLC. The divestiture improves the predictability of Amerens earnings and cash " ows. Since Ameren announced its intention to exit merchant generation late in 2012, investors have taken notice of Amerens overall business strategy, which has included narrowing the gap between allowed and earned returns in our regulated businesses and developing a pipeline of regulated investment opportunities. Ameren begins 2014 as a renewed company focused on its strategic objectives to strengthen and grow its rate-regulated electric, natural gas and transmission operations. In the next few years, it is all about execution in key areas.
I. MANAGING THE BUSINESS WELL First, Ameren will continue operating its businesses
w ell and in a manner consistent with existing regulatory frameworks to provide safe and reliable service for our customers in Missouri and Illinois. Amerens plan is to allocate increasing amounts of discretionary capital to businesses operating under constructive regulatory frameworks. Planned investments in regulated transmission, distribution and generation will drive enhanced shareholder value while helping sustain reliable service for customers and increasing access to renewable energy.As a result of disciplined management:
Earned returns at our utilities have increased.
Delivery service system reliability has improved.
(see page 11) Electric rates have remained reasonably priced.
(see page 18
)I also want to stress that there is nothing more important t han the safety of our workforce, and in 2013 Ameren continued to build a culture where unsafe acts are neither committed nor accepted.% CHANGEPHILADELPHIA UTILITY INDEXAMERENOUTPERFORMING OUR PEERS// Ameren stock (AEE) has outperformed the broader utility index (UTY) since the December 2012 announcement to exit the merchant generation business.
The total return for Ameren shareholders also was in the top quartile of peers for 2013.
9512.19.123.31.136.30.139.30.1312.31.13105115125II. ENHANCING REGULATORY FRAMEWORKSSecond, Ameren is diligently working to enhance the
r egulatory frameworks under which the companys businesses operate. Utilities are among the nations most capital-intensive industries, producing and delivering the energy essential for our modern lives.
My colleagues and I meet frequently with lawmakers, business leaders, labor organizations and other key stakeholders with a goal of " nding constructive ways to enable critical utility investment.Illinois has made notable progress. In 2011, lawmakers passed the Energy Infrastructure Modernization Act (EIMA) that provided for formulaic electric ratemaking.
In 2013, the legislature amended the EIMA, making constructive clari" cations to the ratemaking formula.
Also in 2013, the governor signed the Natural Gas Consumer, Safety & Reliability Act, which provides a framework for gas delivery infrastructure surcharges for quali" ed investments. These actions bring Illinois into further alignment with dozens of other states that have recognized the need for timely cost recovery mechanisms that encourage much-needed infrastructure investments.
44607_Eds.indd 5 3/3/14 9:32 AM 6 Ameren Illinois In electric delivery, Ameren Illinois is executing its Modernization Action Plan (MAP). This decade-long plan calls for an estimated $640 million in investments to support reliability and integrate technology into the grid. This includes installing advanced meters for 780,000 customers, an effort that started in 2014. These safe, cyber-secure meters will enable the Illinois team to more quickly pinpoint and restore service disruptions. The Modernization Action Plan also is designed to create jobs and enable energy innovation. Since 2012, 540 jobs have been created by MAP. August 2013 saw the opening of Ameren Illinois Technology Applications Center, located near the University of Illinois Urbana-Champaign Research Park. The center features a working electric distribution system that lets entrepreneurs test new products including the latest smart appliances. Customers already are seeing smart grid improvements at work. Last spring, for example, lightning caused a major fault to an East Peoria, Ill., substation. A newly installed automated switch initiated a power transfer, restoring service to nearly 1,100 people in minutes rather than hours. This automation represents a transformative change to Illinois power grid. I invite you to view an interactive map of ongoing Illinois electric delivery projects at AmerenIllinois.com.In natural gas delivery, Ameren Illinois plans to participate in the framework established by the states new gas act.
The Arctic air mass that blasted the Midwest early this year reminds us how critical natural gas is for heating homes and businesses. Over the next 10 years, Ameren Illinois plans to invest capital to further strengthen the integrity of its system and install approximately 450,000 advanced gas meters that will enable customers to better manage their energy consumption and reduce costs.ANNUAL MEETING9 a.m. Thursday, April 24, 2014Saint Louis Art MuseumOne Fine Arts Drive, Forest Park St. Louis, Mo.Ameren also has sought and received constructive rate treatment for transmission investments overseen by the Federal Energy Regulatory Commission (FERC). FERCs formulaic rate treatment applies to Ameren Illinois, which is focused on developing, owning and operating transmission projects that meet local needs, as well as Ameren Transmission Company of Illinois (ATXI), which is focused on projects that address regional needs. In Missouri, challenges remain due to the lack of a modern framework for timely recovery of costs related to capital investments. This framework does not lead to the investments that Missourians want and need to address aging infrastructure. Given this regulatory reality, we are limiting the growth in Missouri investments. Elected of" cials in Missouri have stated that energy is a priority in 2014, and well continue to work with them to enhance the regulatory framework. III. DEVELOPING INVESTMENT OPPORTUNITIES Third, Ameren has identi" ed signi" cant investment
o pportunities that will create jobs and generate broader bene" ts for our region, including: Modernized infrastructure that keeps our economy moving forward. Contracting opportunities for small businesses, including diverse-owned suppliers. More information and convenience for our customers.Increased access to renewable energy.Heres an update on the progress.
44607_Eds.indd 6 3/3/14 9:32 AM 77FERC-regulated electric transmissionAmerens most signi" cant opportunities lie in large-
s cale transmission projects. The company plans to invest approximately $2.25 billion from 2014 to 2018 in FERC-regulated electric transmission. The single-largest investment is the Illinois Rivers project, a 345-kilovolt line stretching from east of Quincy, Ill., to the Indiana border. The Illinois Commerce Commission " nalized its Certi" cate of Public Convenience and Necessity for the project in February. Substation construction is already underway, and line construction is expected to commence later this year. Ameren MissouriIn Missouri, the primary focus will be to continue
ma intaining infrastructure, which includes replacing the reactor head at Callaway Energy Center and constructing additional environmental controls at Labadie Energy Center. Ameren Missouri also recently announced plans to build what will be the states largest investor-owned solar facility. Construction of this utility-scale energy center, featuring more than 19,000 solar panels, begins this spring. Ameren wants to power the quality of life for customers with a diverse mix of energy sources, including renewables. I encourage all shareholders to view the 2013 Corporate Social Responsibility Report, which discusses Amerens approach to community betterment, environmental stewardship and " nancial strength. It is available at Ameren.com/CSR. RELENTLESS IMPROVEMENTSince 2009, when I took over as CEO, weve improved
A merens credit ratings; raised the dividend; and outlined a clear path to grow earnings and dividends. Through the end of 2013, Amerens stock price has increased 57%, representing more than $2.8 billion in shareholder value, and during that time Ameren also has paid out more than $1.7 billion in dividends. Looking ahead, expect our signi" cant investment plans to translate into strong earnings growth and a strong dividend. This is critical because healthy " nancial performance is essential to Amerens mission to power the quality of life for an estimated combined population of 6.3 million people in some 1,700 Illinois and Missouri communities. On a personal note, this will be my last letter to you after serving the past " ve years as CEO. When I retire from Ameren on July 1 after more than four decades, Ill be leaving behind an exceptional leadership team to execute our strategic plan.Ameren will be in capable hands with Warner Baxter, who in February was named President and will succeed me as CEO. The Board of Directors and I are con" dent Warner has the talent and tenacity to lead our team in the successful execution of the corporate strategy that has positioned Ameren for growth. And " nally, I want to thank all our employees for being relentless in focusing on operational excellence so we can deliver value for customers and shareholders. Thank you for your trust and loyalty.Thomas R. VossChairman & Chief Executive Of" cer Ameren CorporationFebruary 2014 44607_Eds.indd 7 3/3/14 9:32 AM 8 POSITIONED FOR GROWTHPLANNED CAPITAL INVESTMENT ALLOCATIONAmerens business strategy is designed to deliver top-tier shareholder returns while providing the reliable and safe energy that our customers expect. From 2014-2018, Ameren plans to invest approximately $8.3 billion in our regulated utilities. We believe these investments will create value for all of our stakeholders, including jobs and economic development for the communities we serve.
Transmission
$2.25 BillionInvesting in projects that improve grid ef" ciency and support customer load growth.
Our single-largest undertaking is the nearly 400-mile Illinois Rivers project, which will help integrate renewable energy into the grid. Missouri Environmental
$300 MillionProactively investing to stay ahead of evolving regulations and to be good stewards of our environment. A major project will involve installing new electrostatic precipitators at the Labadie Energy Center to remove " ne particulates and enhance air quality.Illinois Regulated Delivery
$2.65 BillionModernizing the electric grid including installing smart technology that can detect and isolate outagesand investing in gas transmission, storage and distribution infrastructure to support safe, reliable service.Missouri Regulated
$3.05 BillionMaintaining reliability for our customers by performing inspections and replacing critical infrastructure.
Signi" cant projects include replacing the nuclear reactor vessel head at Callaway Energy Center.EXPECTED COMPOUND ANNUAL GROWTH IN RATE BASEAmerens infrastructure investment plans translate into expected overall rate base growth of about 6% compounded annually through 2018. This growth rate is expected to be above the peer group average.
6%44607_Eds.indd 8 3/3/14 9:32 AM 9Amerens investment plan, coupled with disciplined cost control, is expected to lead to solid earnings per share growth in 2014.
We expect earnings per share to grow at a 7% to 10% compound annual rate from 2013 to 2018a rate better than the expected average of our regulated peers.MARTIN J. LYONS, JR., EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 44607_Eds.indd 9 3/3/14 9:32 AM 10 44607_Eds.indd 10 3/3/14 9:32 AM 11// Forward Progress: Candidates for electric lineman apprentice positions participate in exercises at the new Metro East Training Center in Belleville, Ill., where workers are learning about the latest smart technologies for electric and gas delivery service. The facility opened in October 2013 as part of Ameren Illinois Modernization Action Plan to create jobs and enable energy innovation. RELIABLE SERVICE NOW & FOR THE FUTUREReliable energy is essential to the health of our regions economy and to our customers way of lifeat home, at work and at play. Thats why Ameren is focused on ensuring reliable electricity and natural gas service.We continually upgrade our vast energy transmission and delivery systems. In 2013, for example, Ameren Missouri started the St. Louis Downtown Revitalization Project to renew the electric grid in an area where some facilities, conduits and manholes are a century old. Customers can track ongoing construction at AmerenMissouri.com.More and more, were tapping into technology to boost the performance of our interconnected infrastructure.
In the coming years, Amerens systems in Missouri and Illinois will continue to bene" t from the latest reliability technology, which includes remote monitoring to detect gas leaks and intelligent switches that can isolate power outages. These types of upgrades enable Ameren to meet our customers needs and expectations in the years to come.Were focused on improving service reliability for our customers.
Implementing new technology and software is a central component of our plan to upgrade the grid. Ron Pate, Senior Vice President, Operations and Technical Services, Ameren Illinois// Amerens electric distribution reliability performance has steadily improved and in 2013 was the best ever measured across the corporation.System Average Interruption Frequency Index (SAIFI), which shows average number of outages per customer, per year. In 2013, corporation-wide SAIFI was 0.89.1.250.2520082009201020112012= BETTER20130.501.00IMPROVING RELIABILITY 44607_Eds.indd 11 3/3/14 9:32 AM 12 // Committed to Our Communities: Adriann Adams-Gulley, President of Delta Sigma Theta, and Richard Mark, President and CEO, Ameren Illinois, show Chloe Henry one of the toys handed out during the sororitys 2013 Breakfast with Santa in East St. Louis. By supporting worthwhile causes, our company and co-workers build stronger communities.The value Ameren brings to our customers doesnt start and stop at the meter. Every touchpoint counts.
So were taking action to ensure that customers are informed about their accounts and feel empowered to manage their energy usage. And when they have questions, they can turn to us for answers. In 2013, Ameren focused on further improving the digital experience for our customers, including easier enrollment for eBill, Direct Pay and Budget Billing. Customers also can receive timely updates on bill reminders, payment notices, the status of reported outages and more via text or email. As more of our customers use smartphones and tablets, its essential that we provide value by offering tools that meet their expectations. Robin Hadley, General Supervisor, Performance Management, Ameren IllinoisVALUE AT THE METER & BEYOND 5:50 PMAmeren:PAYMENT RECEIVED
Acct ending 1234 a...To sign up, customers can text REG to 40401 or visit Ameren.com/alerts.Message and data rates apply.// Helping Customers Stay Safe: Warner Baxter, President, Ameren Corporation, loads one of 240 ENERGY STAR air conditioners donated to Cool Down St. Louis last summer. Numerous agencies distributed the units to elderly residents and people with disabilities.
44607_Eds.indd 12 3/3/14 9:33 AM 13// Bright Ways to Save: Thanks to a meaningful change to Missouris regulatory framework, Ameren Missouri in 2013 launched the largest customer energy-savings program in state history. Notre Dame Regional High School in Cape Girardeau, Mo., received more than $5,000 from Ameren Missouris ActOnEnergy BizSavers program to install energy-ef" cient lighting in its gymnasium. Its an investment that saves energy and money year after year, while providing a better environment for the people who use these energ y-ef" cient buildings, said Brad Wittenborn, Assistant Principal. The school expects to save more than 96,000 kWh of electricity annually. Meanwhile, Ameren Illinois customers realized nearly $140 million in savings on their electric and gas bills in 2013 by taking advantage of rebates and incentives available through ActOnEnergy programs, which have been in place since 2008. Learn more at ActOnEnergy.com.44607_Eds.indd 13 3/3/14 9:33 AM 14 Listing current as of Feb. 28, 2014.* Of" cer of an Ameren Corporation subsidiary only.
Maureen A. Borkowski*Chairman, President and Chief Executive Of" cer, Ameren Transmission Company of IllinoisRichard J. Mark*
Chairman, President and Chief Executive Of" cer, Ameren IllinoisMark C. Lindgren*
Vice President and Chief Human Resources Of" cer, Ameren ServicesMartin J. Lyons, Jr.
Executive Vice President and Chief Financial Of" cer, Ameren CorporationMichael L. Moehn*
Senior Vice President, Customer Operations, Ameren MissouriAMEREN EXECUTIVE LEADERSHIP TEAM 44607_Eds.indd 14 3/3/14 9:33 AM 15Thomas R. VossChairman and Chief Executive Of" cer, Ameren CorporationWarner L. Baxter President, Ameren CorporationMary P. Heger*
Vice President, Information Technology, Ameren Services Center, and Chief Information Of" cer, Ameren ServicesDaniel F. Cole*
Chairman, President and Chief Executive Of" cer, Ameren ServicesCharles D. Naslund*
Executive Vice President, Ameren MissouriGregory L. Nelson Senior Vice President, General Counsel and Secretary, Ameren Corporation 44607_Eds.indd 15 3/3/14 9:34 AM 16 Lynn M. Barnes*Vice President, Business Planning and Controller, Ameren MissouriMark C. Birk*Senior Vice President, Corporate Planning and Business Risk Management, Ameren ServicesS. Mark BrawleyVice President, Internal Audit, Ameren CorporationKendall D. Coyne*Vice President, Tax, Ameren ServicesKevin A. DeGraw*Vice President, Power Operations, Ameren MissouriFadi M. Diya*Senior Vice President and Chief Nuclear Of" cer, Ameren MissouriAMEREN CORPORATION AND SUBSIDIARIES OFFICERS BOARD OF DIRECTORS Warner L. BaxterPresident, Ameren CorporationCatherine S. Brune Retired President, East Territory, Allstate Insurance Company Audit and Risk Committee; Nuclear Oversight and Environmental CommitteeEllen M. Fitzsimmons Executive Vice President of Law and Public Affairs, General Counsel and Corporate Secretary, CSX Corporation Audit and Risk Committee; Nominating and Corporate Governance CommitteeWalter J. Galvin Retired Vice Chairman, Emerson Electric Co.Finance Committee; Audit and Risk Committee; Lead DirectorRichard J. Harshman Chairman, President and Chief Executive Of" cer, Allegheny Technologies Incorporated Nominating and Corporate Governance Committee; Nuclear Oversight and Environmental CommitteeDr. Gayle P. W. Jackson President and Chief Executive Of" cer, Energy Global, Inc.Nominating and Corporate Governance Committee; Nuclear Oversight and Environmental CommitteeScott A. Glaeser*
V ice President, Gas Operations and Technical Services, Ameren IllinoisSharon Harvey Davis*Vice President and Chief Diversity Of" cer, Ameren ServicesDavid R. Hunt*Vice President, Corporate Communications and Brand Management, Ameren ServicesChristopher A. Iselin*Senior Vice President, Corporate Operations Oversight, Ameren ServicesStephen M. Kidwell*Vice President, Corporate Planning, Ameren ServicesGeralynn M. Lord*Assistant Vice President, Corporate Communications and Brand Management, Ameren ServicesRyan J. Martin Assistant Vice President and Treasurer, Ameren CorporationMichael L. Menne*Vice President, Environmental Services, Ameren ServicesMichael G. Mueller*Vice President, Energy Trading and Fuels Commodities, Ameren MissouriCraig D. Nelson*Senior Vice President, Regulatory Affairs and Financial Services, Ameren IllinoisDavid W. Neterer*Vice President, Engineering, Callaway Nuclear Plant, Ameren MissouriStan E. Ogden*Vice President, Customer Service and Metering Operations, Ameren IllinoisRonald D. Pate*
Senior Vice President, Operations and Technical Services, Ameren IllinoisJoseph M. Power*Vice President, Federal Legislative and Regulatory Affairs, Ameren ServicesCleveland O. Reasoner*Vice President, Nuclear Operations, Callaway Nuclear Plant, Ameren MissouriShawn E. Schukar*Senior Vice President, Business Development, Ameren Transmission Company of IllinoisTheresa A. ShawAssistant Vice President and Controller, Ameren CorporationJames A. Sobule*Vice President and Deputy General Counsel, Ameren ServicesBruce A. Steinke Senior Vice President, Finance and Chief Accounting Of" cer, Ameren CorporationDavid N. Wakeman*Vice President, Energy Delivery-Distribution Services, Ameren MissouriDennis W. Weisenborn*Vice President, Safety and Supply Services, Ameren ServicesD. Scott Wiseman*Vice President, External Affairs, Ameren IllinoisWarren T. Wood*Vice President, Regulatory and Legislative Affairs, Ameren MissouriThe of" cers also include the Ameren Executive Leadership Team on pages 14-15. The of" cer listing is as of Feb. 28, 2014.* Of" cer of an Ameren Corporation subsidiary only.James C. Johnson Retired General Counsel, Loop Capital Markets, LLC Human Resources Committee; Nominating and Corporate Governance CommitteeSteven H. Lipstein President and Chief Executive Of" cer, BJC HealthCareFinance Committee; Human Resources CommitteePatrick T. Stokes Former Chairman, Anheuser-Busch Companies, Inc.Finance Committee; Human Resources CommitteeThomas R. VossChairman and Chief Executive Of" cer, Ameren CorporationStephen R. Wilson Retired Chairman, President and Chief Executive Of" cer, CF Industries Holdings, Inc.
Finance Committee; Audit and Risk CommitteeJack D. Woodard Retired Executive Vice President and Chief Nuclear Of" cer, Southern Nuclear Operating Company, Inc.
Human Resources Committee; Nuclear Oversight and Environmental Committee 44607_Eds.indd 16 3/3/14 9:34 AM 17FINANCIAL HIGHLIGHTS In millions, except per share amounts and as notedYears ended December 31 Results of Operations Operating revenues Operating expenses Operating income
Net income attributable to AmerenCorporation from continuing operations Net income (loss) attributable to Ameren Corporation from discontinued operations Net income (loss) attributable to Ameren Corporation 5,838 4,654 1,184 512 (223) 289 5,781 4,593 1,188 516 (1,490) (974) 6,148 5,115 1,033 431 88 519 $
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$Ameren Consolidated 2013 2012 2011 Common Stock Data Continuing operations earnings per diluted share Discontinued operations earnings (loss) per diluted share Earnings (loss) per diluted share Dividends per common share Dividend yield (year-end)
Market price per common share (year-end closing) Shares outstanding (weighted average)
Total market value of common shares (year-end) Book value per common share Balance Sheet Data Property and plant, net Total assets
Long-term debt obligations, excluding current maturities Capitalization RatiosCommon equity Preferred stock, not subject to mandatory redemption Debt and preferred stock subject to mandatory redemption, net of cash Operating Data (continuing operations) Total electric sales (kilowatt-hours)
Native natural gas sales (decatherms in thousands) Total generation output (kilowatt-hours) Electric customers Natural gas customers 2.10 (0.92) 1.18 1.600 4.4%36.16 242.6 8,772 26.97 2.13 (6.14)
(4.01)1.600 5.2%30.72 242.6 7,453 27.27 1.79 0.36 2.15 1.555 4.7%33.13 241.5 8,037 32.64$
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$$$$$16,205 21,042 5,504 15,348 22,230 5,802 14,848 23,723 5,853$
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$50.1%1.1%48.8%52.0%1.1%46.9%56.6%1.0%42.4%80,057 195,266 43,213 2.4 0.9 81,680 172,647 44,658 2.4 0.9 85,588 178,313 48,741 2.4 0.9 44607_Eds.indd 17 3/3/14 9:34 AM 18 St. Louis CollinsvilleABOUT AMERENAmeren Corporation is a Fortune 500 company. We pride ourselves on a tradition of " nancial strength, cost containment, reasonably priced energy and highly rated customer service, as well as more than 100 years of uninterrupted cash dividend payments to shareholders. Our workforce of about 8,500 serves approximately 2.4 million electric and more than 900,000 natural gas customers across 64,000 square miles.Ameren MissouriThis utility owns a mix of electricity generation facilities, with 10,300 MW capacity. It is the largest electric utility and the second-largest gas distributor in the state.Ameren Illinois This delivery-only utility is the second-largest electric distributor and the third-largest gas distributor in the state.Corporate Headquarters Subsidiary Headquarters Electric Service Territory Electric & Natural Gas Service TerritoryAmerens residential electricity prices are below the national average of 12.09 ¢/kWh. By focusing on operational excellence and disciplined capital management, we can offer reasonably priced energy to millions of people in our service territory. Chart based on revenues and sales report available through the Energy Information Administration (www.eia.gov) for the 12 months ending October 2013. Shows weighted average of Ameren utilities residential electric prices. Ameren Illinois electricity price has been adjusted to re" ect the price of basic generation service to the residential class.San Francisco 16.98 ¢/kWhLos Angeles 13.58 ¢/kWhSan Antonio 9.77 ¢/kWhMiami 10.41 ¢/kWhAtlanta 11.95 ¢/kWhNew York 26.73 ¢/kWhDetroit 15.36 ¢/kWhChicago 11.76 ¢/kWhAmeren Blended 9.87 ¢/kWhPhiladelphia 14.96 ¢/kWhCleveland 11.55 ¢/kWhELECTRICITY PRICESSERVICE TERRITORY 44607_Eds.indd 18 3/3/14 9:34 AM UNITEDSTATESSECURITIESANDEXCHANGECOMMISSIONWashington,D.C.20549FORM10-K(X)AnnualreportpursuanttoSection13or15(d)oftheSecuritiesExchangeActof1934forthefiscalyearendedDecember31,2013.
OR()TransitionreportpursuanttoSection13or15(d)oftheSecuritiesExchangeActof1934forthe transitionperiodfromto.
Commission FileNumberExactnameofregistrantasspecifiedinitscharter; StateofIncorporation; AddressandTelephoneNumberIRSEmployer IdentificationNo.
1-14756AmerenCorporation 43-1723446(MissouriCorporation) 1901ChouteauAvenue St.Louis,Missouri63103 (314)621-3222 1-2967UnionElectricCompany 43-0559760(MissouriCorporation) 1901ChouteauAvenue St.Louis,Missouri63103 (314)621-3222 1-3672AmerenIllinoisCompany 37-0211380(IllinoisCorporation) 6ExecutiveDrive Collinsville,Illinois62234 (618)343-8150SecuritiesRegisteredPursuanttoSection12(b)oftheAct:ThefollowingsecurityisregisteredpursuanttoSection12(b)oftheSecuritiesExchangeActof1934andislistedontheNewYorkStockExchange:
RegistrantTitleofeachclassAmerenCorporationCommonStock,$0.01parvaluepershareSecuritiesRegisteredPursuanttoSection12(g)oftheAct:
RegistrantTitleofeachclassUnionElectricCompanyPreferredStock,cumulative,noparvalue,statedvalue$100pershareAmerenIllinoisCompanyPreferredStock,cumulative,$100parvaluepershare DepositaryShares,eachrepresentingone-fourthofashare of6.625%PreferredStock,cumulative,$100parvalueper
share Indicatebycheckmarkifeachregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.AmerenCorporationYes(X)No()UnionElectricCompanyYes()No(X)AmerenIllinoisCompanyYes()No(X)IndicatebycheckmarkifeachregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.
AmerenCorporationYes()No(X)UnionElectricCompanyYes()No(X)AmerenIllinoisCompanyYes()No(X)Indicatebycheckmarkwhethertheregistrants:(1)havefiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)havebeensubjecttosuchfilingrequirementsforthepast90days.AmerenCorporationYes(X)No()UnionElectricCompanyYes(X)No()AmerenIllinoisCompanyYes(X)No()Indicatebycheckmarkwhethereachregistranthassubmittedelectronicallyandpostedonitscorporatewebsite,ifany,everyInteractiveDataFilerequiredtobesubmittedandpostedpursuanttoRule405ofRegulationS-T(§232.405ofthis chapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitandpostsuch
files).AmerenCorporationYes(X)No()UnionElectricCompanyYes(X)No()AmerenIllinoisCompanyYes(X)No()IndicatebycheckmarkifdisclosureofdelinquentfilerspursuanttoItem405ofRegulationS-K(§229.405ofthischapter)isnotcontainedherein,andwillnotbecontained,tothebestofeachregistrant'sknowledge,indefinitiveproxyor informationstatementsincorporatedbyreferenceinPartIIIofthisForm10-KoranyamendmenttothisForm10-K.AmerenCorporation (X)UnionElectricCompany (X)AmerenIllinoisCompany (X)Indicatebycheckmarkwhethereachregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfilerorasmallerreportingcompany.Seedefinitionsof"largeacceleratedfiler,""acceleratedfiler,"and"smallerreportingcompany"in Rule12b-2oftheExchangeAct.
Large Accelerated Filer Accelerated Filer Non-accelerated Filer Smaller Reporting CompanyAmerenCorporation(X)()()()UnionElectricCompany()()(X)()AmerenIllinoisCompany()()(X)()Indicatebycheckmarkwhethereachregistrantisashellcompany(asdefinedinRule12b-2oftheAct).AmerenCorporationYes()No(X)UnionElectricCompanyYes()No(X)AmerenIllinoisCompanyYes()No(X)
AsofJune28,2013,AmerenCorporationhad242,634,671sharesofits$0.01parvaluecommonstockoutstanding.Theaggregatemarketvalueofthesesharesofcommonstock(basedupontheclosingpriceofthecommonstockontheNewYorkStockExchangeonJune28,2013)heldbynonaffiliateswas$8,356,338,069.Thesharesofcommonstockoftheother registrantswereheldbyAmerenCorporationasofJune28,2013.Thenumberofsharesoutstandingofeachregistrant'sclassesofcommonstockasofJanuary31,2014,wasasfollows:AmerenCorporationCommonstock,$0.01parvaluepershare:242,634,671UnionElectricCompanyCommonstock,$5parvaluepershare,heldbyAmeren Corporation(parentcompanyoftheregistrant):
102,123,834AmerenIllinoisCompanyCommonstock,noparvalue,heldbyAmeren Corporation(parentcompanyoftheregistrant):
25,452,373DOCUMENTSINCORPORATEDBYREFERENCEPortionsofthedefinitiveproxystatementofAmerenCorporationandportionsofthedefinitiveinformationstatementsofUnionElectricCompanyandAmerenIllinoisCompanyforthe2014annualmeetingsofshareholdersareincorporatedby referenceintoPartIIIofthisForm10-K.ThiscombinedForm10-KisseparatelyfiledbyAmerenCorporation,UnionElectricCompany,andAmerenIllinoisCompany.Eachregistrantheretoisfilingonitsownbehalfalloftheinformationcontainedinthisannualreportthatrelatesto suchregistrant.Eachregistrantheretoisnotfilinganyinformationthatdoesnotrelatetosuchregistrant,andthereforemakes norepresentationastoanysuchinformation.
TABLEOFCONTENTS PageGLOSSARYOFTERMSANDABBREVIATIONS.......................................................1Forward-lookingStatements.....................................................................4PARTIItem1.Business.........................................................................5 General......................................................................5BusinessSegments.............................................................6RatesandRegulation...........................................................6TransmissionandSupplyofElectricPower..........................................10PowerGeneration..............................................................11NaturalGasSupplyforDistribution.................................................13IndustryIssues................................................................14OperatingStatistics.............................................................14AvailableInformation...........................................................16Item1A.RiskFactors......................................................................16Item1B.UnresolvedStaffComments..........................................................23Item2.Properties........................................................................24Item3.LegalProceedings..................................................................25Item4.MineSafetyDisclosures.............................................................26ExecutiveOfficersoftheRegistrants(Item401(b)ofRegulationS-K).....................................26PARTII Item5.MarketforRegistrants'CommonEquity,RelatedStockholderMatters,andIssuerPurchasesofEquity Securities
........................................................................
28Item6.SelectedFinancialData..............................................................30Item7.Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations...........30 Overview.....................................................................31ResultsofOperations...........................................................32LiquidityandCapitalResources...................................................47 Outlook......................................................................59RegulatoryMatters.............................................................62AccountingMatters.............................................................62EffectsofInflationandChangingPrices.............................................65Item7A.QuantitativeandQualitativeDisclosuresAboutMarketRisk..................................66Item8.FinancialStatementsandSupplementaryData............................................70SelectedQuarterlyInformation....................................................154Item9.ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure..........154Item9A.ControlsandProcedures.............................................................155Item9B.OtherInformation..................................................................155PARTIII Item10.Directors,ExecutiveOfficers,andCorporateGovernance....................................155Item11.ExecutiveCompensation.............................................................156Item12.SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholder Matters..........................................................................
156Item13.CertainRelationshipsandRelatedTransactionsandDirectorIndependence.....................157Item14.PrincipalAccountingFeesandServices.................................................157PARTIV Item15.ExhibitsandFinancialStatementSchedules..............................................158 SIGNATURES.................................................................................162EXHIBITINDEX...............................................................................165Thisreportcontains"forward-looking"statementswithinthemeaningofSection21EoftheSecuritiesExchangeActof1934,asamended.Forward-lookingstatementsshouldbereadwiththecautionarystatementsandimportantfactorsundertheheading"Forward-lookingStatements."Forward-lookingstatementsareallstatementsotherthanstatementsofhistorical fact,includingthosestatementsthatareidentifiedbytheuseofthewords"anticipates,""estimates,""expects,""intends,"
"plans,""predicts,""projects,"andsimilarexpressions.
GLOSSARYOFTERMSANDABBREVIATIONSWeusethewords"our,""we"or"us"withrespecttocertaininformationthatrelatestoAmeren,AmerenMissouri,andAmerenIllinois,collectively.Whenappropriate,subsidiariesofAmerenCorporationarenamedspecificallyastheirvariousbusinessactivitiesarediscussed.2010IllinoisCreditAgreement-Ameren'sandAmerenIllinois'$800millionmultiyearseniorunsecuredcreditagreement,whichwasterminatedonNovember14,2012.
2010MissouriCreditAgreement-Ameren'sandAmerenMissouri's$800millionmultiyearseniorunsecuredcredit agreement,whichwasterminatedonNovember14,2012.
2012CreditAgreements-The2012IllinoisCreditAgreementandthe2012MissouriCreditAgreement, collectively.
2012IllinoisCreditAgreement-Ameren'sandAmerenIllinois'$1.1billionmultiyearseniorunsecuredcredit agreement,whichexpiresonNovember14,2017.
2012MissouriCreditAgreement-Ameren'sandAmerenMissouri's$1billionmultiyearseniorunsecuredcredit agreement,whichexpiresonNovember14,2017.
AER-AmerenEnergyResourcesCompany,LLC,anAmerenCorporationsubsidiarythatconsistedofnon-rate-regulatedoperations.OnDecember2,2013,AER contributedsubstantiallyallofitsassetsandliabilities, includingitsownershipinterestsinGenco,AERG,and MarketingCompany,toNewAER.MedinaValleywas distributedfromAERtoAmerenonMarch14,2013.
AERG-AmerenEnergyResourcesGeneratingCompany,aformerAERsubsidiarythatoperatedamerchantelectric generationbusinessinIllinois.OnDecember2,2013,AERG wasincludedinthedivestitureofNewAERtoIPH.Afterthe divestitureofNewAERwascompleted,AERGbecame IllinoisPowerResourcesGenerating,LLC.
Ameren-AmerenCorporationanditssubsidiariesonaconsolidatedbasis.Inreferencestofinancingactivities, acquisitionactivities,orliquidityarrangements,Amerenis definedasAmerenCorporation,theparent.
AmerenCompanies-AmerenCorporation,AmerenMissouri,andAmerenIllinois,collectively,whichare individualregistrantswithintheAmerenconsolidatedgroup.
AmerenIllinoisorAIC-AmerenIllinoisCompany,anAmerenCorporationsubsidiarythatoperatesarate-regulatedelectricandnaturalgastransmissionand distributionbusinessinIllinois,doingbusinessasAmeren Illinois.AmerenIllinoisisalsodefinedasafinancial reportingsegment.
AmerenIllinoisMerger-OnOctober1,2010,CILCOandIPmergedwithandintoCIPS,withthesurviving corporationrenamedAmerenIllinoisCompany.
AmerenMissouriorAMO-UnionElectricCompany,anAmerenCorporationsubsidiarythatoperatesarate-regulatedelectricgeneration,transmissionanddistribution business,andarate-regulatednaturalgastransmissionand distributionbusinessinMissouri,doingbusinessas AmerenMissouri.AmerenMissouriisalsodefinedasa financialreportingsegment.
AmerenServices-AmerenServicesCompany,anAmerenCorporationsubsidiarythatprovidessupportservicesto Amerenanditssubsidiaries.
AMIL-TheMISObalancingauthorityareaoperatedbyAmeren,whichincludestheloadofAmerenIllinoisand
ATXI.
AMMO-TheMISObalancingauthorityareaoperatedbyAmeren,whichincludestheloadandenergycentersof AmerenMissouri.
ARO-Assetretirementobligations.
ATXI-AmerenTransmissionCompanyofIllinois,anAmerenCorporationsubsidiarythatisengagedinthe constructionandoperationofelectrictransmissionassets.
Baseload-Theminimumamountofelectricpowerdeliveredorrequiredoveragivenperiodoftimeatasteady
rate.
Btu-Britishthermalunit,astandardunitformeasuringthequantityofheatenergyrequiredtoraisethetemperatureof onepoundofwaterbyonedegreeFahrenheit.
CAIR-CleanAirInterstateRule.Capacityfactor-Apercentagemeasurethatindicateshowmuchofanenergycenter'scapacitywasusedduringa specificperiod.
CCR-Coalcombustionresiduals.
CILCO-CentralIllinoisLightCompany,aformerAmerenCorporationsubsidiarythatoperatedarate-regulated electrictransmissionanddistributionbusiness,andarate-regulatednaturalgastransmissionanddistribution business,allinIllinois,beforetheAmerenIllinoisMerger.
CILCORP-CILCORPInc.,aformerAmerenCorporationsubsidiarythatoperatedasaholdingcompanyforCILCO anditsmerchantgenerationsubsidiary.OnMarch4,2010, CILCORPmergedwithandintoAmeren.
CIPS-CentralIllinoisPublicServiceCompany,anAmerenCorporationsubsidiary,renamedAmerenIllinoisCompany attheeffectivedateoftheAmerenIllinoisMerger,which operatesarate-regulatedelectricandnaturalgas transmissionanddistributionbusiness,allinIllinois.
CO 2-Carbondioxide.
COL-Nuclearenergycentercombinedconstructionandoperatinglicense.
ColeCountyCircuitCourt-CircuitCourtofColeCounty, Missouri.
Coolingdegree-days-Thesummationofpositivedifferencesbetweenthemeandailytemperatureanda65-degreeFahrenheitbase.Thisstatisticisusefulasan indicatorofelectricitydemandbyresidentialand commercialcustomersforsummercooling.
CSAPR-Cross-StateAirPollutionRule.
CT-Combustionturbineelectricenergycenterusedprimarilyforpeakingcapacity.
DOE-DepartmentofEnergy,aUnitedStatesgovernment agency.
DRPlus-AmerenCorporation'sdividendreinvestmentanddirectstockpurchaseplan.
Dekatherm-OnemillionBtusofnaturalgas.
Dynegy-DynegyInc.
1 EEI-ElectricEnergy,Inc.,an80%-ownedGencosubsidiarythatoperatesmerchantelectricgenerationenergycentersandFERC-regulatedtransmissionfacilitiesinIllinois.On December2,2013,Genco'sownershipinterestinEEIwas includedinthedivestitureofNewAERtoIPH.
Entergy-EntergyArkansas,Inc.
EPA-EnvironmentalProtectionAgency,aUnitedStatesgovernmentagency.
Equivalentavailabilityfactor-Ameasurethatindicatesthepercentageoftimeanenergycenterwasavailablefor serviceduringaperiod.
ERISA-EmployeeRetirementIncomeSecurityActof1974,asamended.
ExchangeAct-SecuritiesExchangeActof1934,as amended.
FAC-Fueladjustmentclause,afuelandpurchasedpowercostrecoverymechanismthatallowsAmerenMissourito recover,throughcustomerrates,95%ofchangesinnet energycostsgreaterorlessthantheamountsetinbase rateswithoutatraditionalrateproceeding,subjectto MoPSCprudencereviews.Netenergycostincludesfuel (coal,coaltransportation,naturalgasforgeneration,and nuclear),certainfueladditives,emissionallowances, purchasedpowercosts,transmissioncostsandrevenues, andMISOcostsandrevenues,netofoff-systemsales
revenues.
FASB-FinancialAccountingStandardsBoard,arulemakingorganizationthatestablishesfinancial accountingandreportingstandardsintheUnitedStates.
FERC-FederalEnergyRegulatoryCommission,aUnitedStatesgovernmentagency.
Fitch-FitchRatings,acreditratingagency.
FTRs-Financialtransmissionrights,financialinstrumentsthatspecifywhethertheholdershallpayorreceive compensationforcertaincongestion-relatedtransmission chargesbetweentwodesignatedpoints.
GAAP-GenerallyacceptedaccountingprinciplesintheUnitedStatesofAmerica.
Genco-AmerenEnergyGeneratingCompany,aformerAERsubsidiarythatoperatedamerchantelectricgeneration businessinIllinoisandholdsan80%ownershipinterestin EEI.OnDecember2,2013,Gencowasincludedinthe divestitureofNewAERtoIPH.AftertheNewAER divestiturewascompleted,GencobecameIllinoisPower GeneratingCompany.
Heatingdegree-days-Thesummationofnegativedifferencesbetweenthemeandailytemperatureanda65-degreeFahrenheitbase.Thisstatisticisusefulasan indicatorofdemandforelectricityandnaturalgasforwinter spaceheatingbyresidentialandcommercialcustomers.
IBEW-InternationalBrotherhoodofElectricalWorkers,alaborunion.
ICC-IllinoisCommerceCommission,astateagencythatregulatesIllinoisutilitybusinesses,includingAmeren IllinoisandATXI.
IEIMA-IllinoisEnergyInfrastructureModernizationAct,anIllinoislawthatestablishedaperformance-basedformula processfordeterminingelectricdeliveryservicerates.By itselectiontoparticipateinthisregulatoryframework, AmerenIllinoisisrequiredtomakeincrementalcapitalexpenditurestomodernizeitselectricdistributionsystem, meetperformancestandards,andcreatejobsinIllinois, amongotherthings.
IP-IllinoisPowerCompany,aformerAmerenCorporationsubsidiarythatoperatedarate-regulatedelectricandnatural gastransmissionanddistributionbusiness,allinIllinois, beforetheAmerenIllinoisMerger.
IPA-IllinoisPowerAgency,astategovernmentagencythathasbroadauthoritytoassistintheprocurementof electricpowerforresidentialandsmallcommercial
customers.
IPH-IllinoisPowerHoldings,LLC,anindirectwhollyownedsubsidiaryofDynegy.
IRS-InternalRevenueService,aUnitedStatesgovernment agency.
ISRS-Infrastructuresystemreplacementsurcharge,whichisacostrecoverymechanismthatallowsAmerenMissouri torecovernaturalgasinfrastructurereplacementcosts fromutilitycustomerswithoutatraditionalrateproceeding.
IUOE-InternationalUnionofOperatingEngineers,alabor union.
Kilowatthour-Ameasureofelectricityconsumptionequivalenttotheuseof1,000wattsofpoweroveronehour.
LIUNA-Laborers'InternationalUnionofNorthAmerica,alaborunion.
MarketingCompany-AmerenEnergyMarketingCompany,aformerAERsubsidiarythatmarketedpowerforGenco, AERG,andEEI.MarketingCompanywasincludedinthe divestitureofNewAERtoIPHonDecember2,2013.After thedivestitureofNewAERwascompleted,Marketing CompanybecameIllinoisPowerMarketingCompany.
MATS-MercuryandAirToxicsStandards.MedinaValley-AmerenEnergyMedinaValleyCogen,LLC,anAmerenCorporationsubsidiary.Previously,this companyowneda40-megawattnaturalgas-firedelectric energycenterthatwassoldinFebruary2012.This companywasdistributedfromAERtoAmerenon March14,2013.
MEEIA-MissouriEnergyEfficiencyInvestmentAct,aMissourilawthatallowselectricutilitiestorecovercosts relatedtoMoPSC-approvedenergyefficiencyprograms.
MegawatthourorMWh-Onethousandkilowatthours.MerchantGeneration-AfinancialreportingsegmentthatpriortothedivestitureofNewAERtoIPHonDecember2, 2013,consistedprimarilyoftheoperationsofAER, includingGenco,AERG,MarketingCompanyand,through March13,2013,MedinaValley.
MGP-Manufacturedgasplant.
MIEC-MissouriIndustrialEnergyConsumers.
MISO-MidcontinentIndependentSystemOperator,Inc.,anRTO.
MissouriEnvironmentalAuthority-EnvironmentalImprovementandEnergyResourcesAuthorityofthestate ofMissouri,agovernmentalbodyauthorizedtofinance environmentalprojectsbyissuingtax-exemptbondsand
notes.
Mmbtu-OnemillionBtus.Moneypool-BorrowingagreementsamongAmerenanditssubsidiariestocoordinateandprovideforcertainshort-termcashandworkingcapitalrequirements.
2 Moody's-Moody'sInvestorsServiceInc.,acreditrating agency.MoOPC-MissouriOfficeofPublicCounsel.
MoPSC-MissouriPublicServiceCommission,astateagencythatregulatesMissouriutilitybusinesses,including AmerenMissouri.
MPS-Multi-PollutantStandard,acompliancealternativeunderIllinoislawcoveringreductionsinemissionsofSO 2 , NO x,andmercury,whichGenco,EEI,andAERGelectedin 2006.
MTM-Mark-to-market.
MW-Megawatt.Nativeload-End-useretailcustomerswhomweareobligatedtoservebystatute,franchise,contract,orother regulatoryrequirement.
NERC-NorthAmericanElectricReliabilityCorporation.NewAER-NewAmerenEnergyResourcesGeneratingCompany,LLC,alimitedliabilitycompanyformedasa directwhollyownedsubsidiaryofAER.NewAER,acquired byIPHonDecember2,2013,includedsubstantiallyallof theassetsandliabilitiesofAER,exceptforcertainassets andliabilitiesretainedbyAmeren.AfterAmeren's divestitureofNewAERtoIPHwascompleted,thisentity becameIllinoisPowerResources,LLC.
NO 2-Nitrogendioxide.
NO x-Nitrogenoxides.
Noranda-NorandaAluminum,Inc.
NPNS-Normalpurchasesandnormalsales.
NRC-NuclearRegulatoryCommission,aUnitedStatesgovernmentagency.
NSPS-NewSourcePerformanceStandards,aprovisionundertheCleanAirAct.
NSR-NewSourceReviewprovisionsoftheCleanAirAct,whichincludeNonattainmentNewSourceReviewand PreventionofSignificantDeteriorationregulations.
NWPA-NuclearWastePolicyActof1982,asamended.
NYMEX-NewYorkMercantileExchange.
NYSE-NewYorkStockExchange,Inc.
OATT-OpenAccessTransmissionTariff.
OCI-Othercomprehensiveincome(loss)asdefinedby GAAP.
Off-systemsalesrevenues-Revenuesfromotherthannativeloadsales,includingwholesalesalesbeginningwiththeJuly31,2011effectivedateoftheMoPSC's2011 electricrateorder.
OTC-Over-the-counter.
PGA-PurchasedGasAdjustmenttariffs,whichpermitprudentlyincurrednaturalgascoststoberecovereddirectly fromutilitycustomerswithoutatraditionalrateproceeding.
PJM-PJMInterconnectionLLC.PUHCA2005-ThePublicUtilityHoldingCompanyActof 2005.
Ratebase-Thenetvalueofpropertyonwhichapublicutilityispermittedtoearnanallowedrateofreturn.
Regulatorylag-Theeffectofadjustmentstoretailelectricandnaturalgasratesbeingbasedonhistoriccostandsales volumelevels.Rateincreaserequests,intraditionalrate caseproceedings,cantakeupto11monthstobeacted uponbytheMoPSCandtheICC.Asaresult,revenue increasesauthorizedbyregulatorswilllagbehindchanging costsandsalesvolumelevelswhenbasedonhistorical
periods.
Revenuerequirement-Thecostofprovidingutilityservicetocustomers,whichiscalculatedasthesumofautility's recoverableoperatingandmaintenanceexpenses, depreciationandamortizationexpense,taxes,andan allowedreturnoninvestment.
RFP-Requestforproposal.RocklandCapital-RocklandCapital,LLCtogetherwiththespecialpurposeentityaffiliatedwithandformedby RocklandCapital,LLCthatacquiredtheElgin,GibsonCity, andGrandTowergas-firedenergycenters.
RTO-Regionaltransmissionorganization.
S&P-Standard&Poor'sRatingsServices,acreditrating agency.
SEC-SecuritiesandExchangeCommission,aUnitedStatesgovernmentagency.
SERC-SERCReliabilityCorporation,oneoftheregionalelectricreliabilitycouncilsorganizedforcoordinatingthe planningandoperationofthenation'sbulkpowersupply.
SO 2-Sulfurdioxide.StoddardCountyCircuitCourt-CircuitCourtofStoddardCounty,Missouri.
UA-UnitedAssociationofPlumbersandPipefitters,alaborunion.
Westinghouse-WestinghouseElectricCompany.
3 FORWARD-LOOKINGSTATEMENTSStatementsinthisreportnotbasedonhistoricalfactsareconsidered"forward-looking"and,accordingly,involverisksanduncertaintiesthatcouldcauseactualresultsto differmateriallyfromthosediscussed.Althoughsuch forward-lookingstatementshavebeenmadeingoodfaith andarebasedonreasonableassumptions,thereisno assurancethattheexpectedresultswillbeachieved.These statementsinclude(withoutlimitation)statementsasto futureexpectations,beliefs,plans,strategies,objectives, events,conditions,andfinancialperformance.In connectionwiththe"safeharbor"provisionsofthePrivate SecuritiesLitigationReformActof1995,weareproviding thiscautionarystatementtoidentifyimportantfactorsthat couldcauseactualresultstodiffermateriallyfromthose anticipated.Thefollowingfactors,inadditiontothose discussedunderRiskFactorsandelsewhereinthisreport andinourotherfilingswiththeSEC,couldcauseactual resultstodiffermateriallyfrommanagementexpectations suggestedinsuchforward-lookingstatements:
regulatory,judicial,orlegislativeactions,includingchangesinregulatorypoliciesandratemaking determinations,suchasthecomplaintcasesfiledby Norandaand37residentialcustomerswiththeMoPSC inFebruary2014;theoutcomeofAmerenIllinois' appealoftheICC'selectricrateorderissuedin December2013;AmerenIllinois'requestforrehearing ofaJuly2012FERCorderregardingtheinclusionof acquisitionpremiumsinitstransmissionrates;and futureregulatory,judicial,orlegislativeactionsthat seektochangeregulatoryrecoverymechanisms; theeffectofAmerenIllinoisparticipatingina performance-basedformularatemakingprocessunder theIEIMA,includingthedirectrelationshipbetween AmerenIllinois'returnoncommonequityandthe30-yearUnitedStatesTreasurybondyields,therelated financialcommitmentsrequiredbytheIEIMA,andthe resultinguncertainimpactonthefinancialcondition, resultsofoperations,andliquidityofAmerenIllinois; theeffectsofAmerenIllinois'expectedparticipation, beginningin2015,intheregulatoryframework providedbythestateofIllinois'NaturalGasConsumer, SafetyandReliabilityAct,whichallowsfortheuseofa ridertorecovercostsofcertainnaturalgas infrastructureinvestmentsmadebetweenratecases; theeffectsof,orchangesto,theIllinoispower procurementprocess; theeffectsofincreasedcompetitioninthefuturedue to,amongotherthings,deregulationofcertainaspects ofourbusinessateitherthestateorfederallevelsand theimplementationofderegulation; changesinlawsandothergovernmentalactions, includingmonetary,fiscal,andtaxpolicies; theeffectsondemandforourservicesresultingfrom technologicaladvances,includingadvancesinenergy efficiencyanddistributedgenerationsources,which generateelectricityatthesiteofconsumption; increasingcapitalexpenditureandoperatingexpense requirementsandourabilitytotimelyrecoverthesecosts; thecostandavailabilityoffuelsuchascoal,natural gas,andenricheduraniumusedtoproduceelectricity; thecostandavailabilityofpurchasedpowerandnatural gasfordistribution;andthelevelandvolatilityoffuture marketpricesforsuchcommodities,includingour abilitytorecoverthecostsforsuchcommodities; theeffectivenessofourriskmanagementstrategies andtheuseoffinancialandderivativeinstruments; businessandeconomicconditions,includingtheir impactoninterestrates,baddebtexpense,and demandforourproducts; disruptionsofthecapitalmarkets,deteriorationin creditmetricsoftheAmerenCompanies,orother eventsthatmaymaketheAmerenCompanies'access tonecessarycapital,includingshort-termcreditand liquidity,impossible,moredifficult,ormorecostly; ourassessmentofourliquidity; theimpactoftheadoptionofnewaccountingguidance andtheapplicationofappropriatetechnicalaccounting rulesandguidance; actionsofcreditratingagenciesandtheeffectsofsuch
actions;theimpactofweatherconditionsandothernatural phenomenaonusandourcustomers; theimpactofsystemoutages; generation,transmission,anddistributionasset construction,installation,performance,andcost
recovery;theeffectsofourincreasinginvestmentinelectric transmissionprojectsanduncertaintyastowhetherwe willachieveourexpectedreturnsinatimelyfashion,if atall;theextenttowhichAmerenMissouriprevailsinits claimsagainstinsurersinconnectionwithitsTaum Saukpumped-storagehydroelectricenergycenter
incident;theextenttowhichAmerenMissouriispermittedbyits regulatorstorecoverinratestheinvestmentsitmade inconnectionwithadditionalnucleargenerationatits Callawayenergycenter; operationofAmerenMissouri'sCallawayenergycenter, includingplannedandunplannedoutages,and decommissioningcosts; theeffectsofstrategicinitiatives,includingmergers, acquisitionsanddivestitures,andanyrelatedtax
implications; theimpactofcurrentenvironmentalregulationson utilitiesandpowergeneratingcompaniesandnew, morestringentorchangingrequirements,including thoserelatedtogreenhousegases,otheremissions anddischarges,coolingwaterintakestructures,CCR, andenergyefficiency,thatareenactedovertimeand thatcouldlimitorterminatetheoperationofcertainof ourenergycenters,increaseourcosts,resultinan impairmentofourassets,resultinsalesofourassets, reduceourcustomers'demandforelectricityornatural gas,orotherwisehaveanegativefinancialeffect; theimpactofcomplyingwithrenewableenergy portfoliorequirementsinMissouri; 4
labordisputes,workforcereductions,futurewageandemployeebenefitscosts,includingchangesindiscount ratesandreturnsonbenefitplanassets; theinabilityofourcounterpartiestomeettheir obligationswithrespecttocontracts,credit agreements,andfinancialinstruments; thecostandavailabilityoftransmissioncapacityforthe energygeneratedbyAmeren'sandAmerenMissouri'senergycentersorrequiredtosatisfyenergysalesmade byAmerenorAmerenMissouri; theinabilityofDynegyandIPHtosatisfytheir indemnityandotherobligationstoAmerenin connectionwiththedivestitureofNewAERtoIPH; legalandadministrativeproceedings;and actsofsabotage,war,terrorism,cyberattacksor intentionallydisruptiveacts.Giventheseuncertainties,unduerelianceshouldnotbeplacedontheseforward-lookingstatements.Excepttotheextentrequiredbythefederalsecuritieslaws,weundertakenoobligationtoupdateorrevisepubliclyanyforward-lookingstatements toreflectnewinformationorfutureevents.PARTIITEM1.BUSINESS GENERALAmeren,headquarteredinSt.Louis,Missouri,isapublicutilityholdingcompanyunderPUHCA2005,administeredbyFERC.Amerenwasformedin1997bythe mergerofAmerenMissouriandCIPSCOInc.Ameren acquiredCILCORPin2003andIPin2004.Ameren's primaryassetsareitsequityinterestsinitssubsidiaries, includingAmerenMissouriandAmerenIllinois.Ameren's subsidiariesareseparate,independentlegalentitieswith separatebusinesses,assets,andliabilities.Dividendson Ameren'scommonstockandthepaymentofother expensesbyAmerendependondistributionsmadetoitby itssubsidiaries.BelowisasummarydescriptionofAmerenMissouriandAmerenIllinois.Amoredetaileddescriptioncanbe foundinNote1-SummaryofSignificantAccounting PoliciesunderPartII,Item8,ofthisreport.
AmerenMissourioperatesarate-regulatedelectricgeneration,transmission,anddistributionbusiness, andarate-regulatednaturalgastransmissionand distributionbusinessinMissouri.
AmerenIllinoisoperatesarate-regulatedelectricand naturalgastransmissionanddistributionbusinessin
Illinois.Amerenhasvariousothersubsidiariesresponsibleforactivitiessuchastheprovisionofsharedservices.Ameren alsohasasubsidiary,ATXI,thatoperatesaFERCrate-regulatedelectrictransmissionbusinessandisdeveloping theIllinoisRiversproject.TheIllinoisRiversprojectisa MISO-approvedprojecttobuilda345-kilovoltlinefrom westernIndianaacrossthestateofIllinoistoeastern Missouriatanestimatedcostof$1.1billion.OnMarch14,2013,AmerenenteredintoatransactionagreementtodivestNewAERtoIPH.OnDecember2, 2013,AmerencompletedthedivestitureofNewAERtoIPH.
OnJanuary31,2014,MedinaValleycompleteditssaleof theElgin,GibsonCity,andGrandTowergas-firedenergy centerstoRocklandCapital.SeeNote16-Divestiture TransactionsandDiscontinuedOperationsunderPartII, Item8,ofthisreportforadditionalinformation.AsaresultofthetransactionagreementwithIPHandAmeren'splantosellitsElgin,GibsonCity,andGrandTower gas-firedenergycenters,AmerendeterminedthatNewAER andthegas-firedenergycentersqualifiedfordiscontinued operationspresentationbeginningMarch14,2013.In addition,asofDecember2,2013,Amerenabandonedthe MeredosiaandHutsonvilleenergycentersuponthe completionofthedivestitureofNewAERtoIPH.Amerenis prohibitedfromoperatingtheseenergycentersthrough December31,2020,asaprovisionoftheIllinoisPollution ControlBoard'sNovember2013ordergrantingIPHa varianceoftheMPS.Asaresult,Amerendeterminedthatthe MeredosiaandHutsonvilleenergycentersqualifiedfor discontinuedoperationspresentationasofDecember2, 2013.TheMeredosiaandHutsonvilleenergycentersceased operationsatDecember31,2011,andtherefore2011was thelastyearthoseenergycentershadamaterialeffecton Ameren'sconsolidatedfinancialstatements.Asaresultof theseevents,AmerenhassegregatedNewAER'sandthe Elgin,GibsonCity,GrandTower,Meredosia,andHutsonville energycenters'operatingresults,assets,andliabilitiesand presentedthemseparatelyasdiscontinuedoperationsforall periodspresentedinthisreport.Unlessotherwisestated,the followingsectionswithinPartI,Item1,ofthisreportexclude discontinuedoperationsforallperiodspresented.SeeNote 16-DivestitureTransactionsandDiscontinuedOperations underPartII,Item8,ofthisreportforadditionalinformation regardingthatpresentation.ThefollowingtablepresentsourtotalemployeesatDecember31,2013:AmerenMissouri
.................................
3,932AmerenIllinois
...................................
3,133AmerenServicesandOther
.........................
1,462 Ameren........................................
8,527AsofJanuary1,2014,theIBEW,theIUOE,theLIUNA,andtheUAlaborunionscollectivelyrepresentedabout56%
ofAmeren'stotalemployees.Theyrepresented64%ofthe employeesatAmerenMissouriand61%atAmerenIllinois.
Thecollectivebargainingagreementshavetwo-tosix-year terms,andexpirebetween2015and2017.
5 Foradditionalinformationaboutthedevelopmentofourbusinesses,ourbusinessoperations,andfactorsaffectingouroperationsandfinancialposition,see Management'sDiscussionandAnalysisofFinancial ConditionandResultsofOperationsunderPartII,Item7, ofthisreportandNote1-SummaryofSignificant AccountingPoliciesunderPartII,Item8,ofthisreport.BUSINESSSEGMENTSAmerenhastworeportablesegments:AmerenMissouriandAmerenIllinois.SeeNote17-SegmentInformationunderPartII,Item8,ofthisreportfor additionalinformationonreportingsegments.RATESANDREGULATION RatesTheratesthatAmerenMissouri,AmerenIllinoisandATXIareallowedtochargefortheirutilityservicessignificantlyinfluencetheresultsofoperations,financial position,andliquidityofthesecompaniesandAmeren.The electricandnaturalgasutilityindustryishighlyregulated.
Theutilityrateschargedtocustomersaredetermined,in largepart,bygovernmentalentities,includingtheMoPSC, theICC,andFERC.Decisionsbytheseentitiesare influencedbymanyfactors,includingthecostofproviding service,theprudencyofexpenditures,thequalityofservice,regulatorystaffknowledgeandexperience,customer intervention,economicconditions,publicpolicy,andsocial andpoliticalviews.Decisionsmadebythesegovernmental entitiesregardingratesarelargelyoutsideofourcontrol.
Thesedecisions,aswellastheregulatorylaginvolvedin filingandgettingnewratesapproved,couldhaveamaterial impactontheresultsofoperations,financialposition,and liquidityofAmeren,AmerenMissouriandAmerenIllinois.
TheextentoftheregulatorylagvariesforeachofAmeren's electricandnaturalgasjurisdictions,withourFERC-regulatedelectricjurisdictionsexperiencingtheleast amountofregulatorylag.Theeffectsofregulatorylagare mitigatedthroughavarietyofmeansincludingtheuseofa futuretestyear,theimplementationoftrackersandriders, thedeferralofdepreciationforassetsnotyetincludedin ratebase,andbyregulatoryframeworksthatincludeannual revenuerequirementreconciliations.TheICCregulatesratesandothermattersforAmerenIllinoisandtheICCregulatesnon-rateutilitymattersfor ATXI.ATXIdoesnothaveretaildistributioncustomers,and thereforetheICCdoesnothaveauthoritytoregulateits rates.TheMoPSCregulatesratesandothermattersfor AmerenMissouri.FERCregulatesAmerenMissouri, AmerenIllinoisandATXIastotheirabilitytocharge market-basedratesforthewholesalesaleandtransmission ofenergyininterstatecommerceandvariousothermatters discussedbelowunderGeneralRegulatoryMatters.Thefollowingtablesummarizes,byratejurisdiction,therateordersineffectforcustomerbillingsforeachofAmeren'srate-regulatedutilitiesasofJanuary1,2014.
Regulator Allowed Return on Equity Percent of Common EquityRateBase(inbillions)PortionofAmeren's2013 Operating Revenues (a)AmerenMissouriElectricservice (b)(c)........................................MoPSC9.8%52.3%$6.858%Naturalgasdeliveryservice (d)...............................MoPSC(e)52.9%$0.2 (e)3%AmerenIllinoisElectricdistributiondeliveryservice (f).........................ICC8.7%51.0%$2.023%Naturalgasdeliveryservice (g)...............................ICC9.1%51.7%$1.114%Electrictransmissiondeliveryservice (h)........................FERC12.38%55.2%$0.72%
ATXIElectrictransmissiondeliveryservice (h)........................FERC12.38%56.0%$0.2(i)(a)Includespass-throughcostsrecoveredfromcustomers,suchaspurchasedpowerforelectricdistributiondeliveryserviceandgaspurchasedforresalefornaturalgasdeliveryservice.(b)AmerenMissourielectricgeneration,transmission,anddeliveryserviceratesarebundledtogetherandchargedtoretailcustomersunderacombinedelectricservicerate.(c)BasedonMoPSC'sDecember2012rateorder,whichbecameeffectiveonJanuary2,2013.(d)BasedonMoPSC'sJanuary2011rateorder,whichbecameeffectiveonFebruary20,2011.
(e)AmerenMissouri'slastnaturalgasrateorderdidnotspecifytheallowedreturnonequityorratebase.
(f)BasedontheICC'sDecember2013rateorder,whichbecameeffectiveonJanuary1,2014.TheDecember2013rateorderwasbasedon2012recoverablecosts,expectednetplantadditionsfor2013,andthemonthlyyieldsduring2012ofthe30-yearUnitedStatestreasurybondsplus 580basispoints.AmerenIllinois'2014electricdistributiondeliveryservicerevenueswillbebasedonits2014actualrecoverablecosts,rate base,andreturnoncommonequity,ascalculatedundertheIEIMA'sperformance-basedformularatemakingframework.(g)BasedontheICC'sDecember2013rateorder,whichbecameeffectiveonJanuary1,2014.Therateorderwasbasedona2014futuretest year.(h)TransmissionratesareupdatedandbecomeeffectiveeachJanuaryusingacompany-specific,forward-lookingrateformulaframework,whichisbasedonthatyear'sforecastedinformation.(i)Lessthan1%.
6 AmerenMissouri ElectricAmerenMissouri'selectricoperatingrevenuesaresubjecttoregulationbytheMoPSC.InDecember2012,theMoPSCissuedanorderapprovingratesforelectricservice basedona9.8%returnonequity,acapitalstructure composedof52.3%commonequity,andaratebaseof
$6.8billion.TheseratesbecameeffectiveonJanuary2, 2013.Ifcertaincriteriaaremet,AmerenMissouri'selectricratesmaybeadjustedwithoutatraditionalrateproceeding.
TheFACpermitsAmerenMissouritorecover,through customerrates,95%ofchangesinnetenergycostsgreater thanorlessthantheamountsetinbaserateswithouta traditionalrateproceeding,subjecttoprudencereviews.Net energycostincludesfuel,emissionallowances,purchased powercosts,certainfueladditives,transmissioncostsand revenues,andMISOcostsandrevenues,netofoff-system salesrevenues.Similarly,allofAmerenMissouri'sMEEIA costs,includingenergyefficiencyprogramcosts,projected lostrevenues,andpotentialincentiveawards,arerecovered throughariderthatmaybeadjustedwithoutatraditional rateproceeding.InadditiontotheFACandtheMEEIArecoverymechanisms,AmerenMissouriemploysothercost recoverymechanismsincludingavegetationmanagement andinfrastructureinspectioncosttracker,apensionand postretirementbenefitcosttracker,anuncertaintax positiontracker,arenewableenergystandardscosttracker, solarrebateprogramtracker,andastormcosttracker.
EachofthesetrackersallowsAmerenMissouritorecord thedifferencebetweenthelevelofincurredcostsunder GAAPandthelevelofsuchcostsbuiltintoratesasa regulatoryassetorregulatoryliability,whichwillbe includedinratesinafuturerateorder.FERCregulatestherateschargedandthetermsandconditionsforelectrictransmissionservices.Because AmerenMissouriisamemberofMISO,itstransmission rateiscalculatedinaccordancewiththeMISOOATT.The transmissionrateisupdatedinJuneofeachyear;itis basedonAmerenMissouri'sfilingswithFERC.Thisrateis notdirectlychargedtoMissouriretailcustomers,because inMissouritheMoPSCincludestransmission-relatedcosts andrevenuesinsettingbundledretailrates.Asdiscussed above,AmerenMissouritransmissionrevenues,aswellas certaintransmissioncostspaidtoMISOfortransmission services,areincludedintheFAC.NaturalGasAmerenMissouri'snaturalgasoperatingrevenuesaresubjecttoregulationbytheMoPSC.ThelastnaturalgasdeliveryservicerateorderwasissuedbytheMoPSCin January2011.Ifcertaincriteriaaremet,AmerenMissouri'snaturalgasratesmaybeadjustedwithoutatraditionalrate proceeding.PGAclausespermitprudentlyincurrednatural gascoststobepasseddirectlytocustomers.TheISRSalso permitscertainprudentlyincurrednaturalgasinfrastructurereplacementcoststoberecoveredfromcustomersona moretimelybasisbetweenratecases.Thereturnonequity tobeusedbyAmerenMissouriforpurposesoftheISRS tarifffilingis10%.AnISRStariffwasapprovedandbecame effectiveinOctober2013fortherecoveryofeligible infrastructuresystemreplacementinvestmentsmadefrom January2011throughMay2013,whichresultedina
$1millionannualincreaseinrates.ForadditionalinformationonMissouriratematters,seeResultsofOperationsandOutlookinManagement's DiscussionandAnalysisofFinancialConditionandResults ofOperationsunderPartII,Item7,Quantitativeand QualitativeDisclosuresAboutMarketRiskunderPartII, Item7A,andNote2-RateandRegulatoryMatters,and Note15-CommitmentsandContingenciesunderPartII, Item8,ofthisreport.AmerenIllinois ElectricAmerenIllinois'electricoperatingrevenues,aresubjecttoeitherICCorFERCregulation.AmerenIllinoiselectricdistributiondeliveryserviceisregulatedbytheICC,whileits electrictransmissiondeliveryserviceisregulatedbyFERC.
In2013,AmerenIllinois'electricdistributiondelivery servicecomprised90%ofitstotalelectricoperating revenues,withtheremainderofitselectricoperating revenuesrelatedtoelectrictransmissiondeliveryservice.UnderIllinoislaw,allelectriccustomersinIllinoismaychoosetheirownelectricenergyprovider.However, AmerenIllinoisisrequiredtoserveastheprovideroflast resort(POLR)forelectriccustomerswithinitsterritorywho havenotchosenanalternativeretailelectricsupplier.
AmerenIllinois'obligationtoprovidePOLRelectricservice variesbycustomersize.AmerenIllinoisisnotrequiredto offerfixed-pricedelectricservicetocustomerswithelectric demandsof400kilowattsorgreater,asthemarketfor servicetothisgroupofcustomershasbeendeclared competitive.Powerandrelatedprocurementcostsincurred byAmerenIllinoisarepasseddirectlytoitscustomers throughacostrecoverymechanism.AmerenIllinoisparticipatesintheperformance-basedformularatemakingprocessestablishedpursuanttothe IEIMA.TheIEIMAwasdesignedtoprovidefortherecovery ofactualcostsofelectricdeliveryservicethatareprudently incurredandtoreflecttheutility'sactualregulatedcapital structurethroughaformulaforcalculatingthereturnon equitycomponentofthecostofcapital.Thereturnon equitycomponentoftheformularateisequaltothe averageforthecalendaryearofthemonthlyyieldsof30-yearUnitedStatestreasurybondsplus580basispoints.
AmerenIllinois'actualreturnonequityrelatingtoelectric deliveryserviceissubjecttoacollaradjustmenton earningsinexcessof50basispointsgreaterthanorless thanitsallowedreturn.TheIEIMAprovidesforanannual reconciliationoftherevenuerequirementnecessaryto reflecttheactualcostsincurredinagivenyearwiththe revenuerequirementineffectforthatyear,includingan 7
allowedreturnonequity.Thisannualrevenuereconciliation,alongwiththecollaradjustment,if necessary,willbecollectedfromorrefundedtocustomers inasubsequentyear.AmerenIllinoisisalsosubjecttoperformancestandardsundertheIEIMA.Failuretoachievethestandards wouldresultinareductioninthecompany'sallowedreturn onequitycalculatedundertheformula.Theperformance standardsincludeimprovementsinservicereliabilityto reduceboththefrequencyanddurationofoutages, reductioninthenumberofestimatedbills,reductionof consumptiononinactivemeters,andareductionin uncollectibleaccountsexpense.TheIEIMAprovidesfor returnonequitypenaltiestotalingupto30basispointsin 2013through2015,34basispointsin2016through2018, and38basispointsin2019through2022ifthe performancestandardsarenotmet.Theformula ratemakingprocessiseffectiveuntiltheendof2017,but couldbeextendedbytheIllinoisGeneralAssemblyforan additionalfiveyears.Theformularatemakingprocess wouldalsoterminateiftheaverageresidentialratewereto increasebymorethan2.5%annuallyfromJune2011 throughMay2014.Theaverageresidentialrateincludes generationservice,whichisoutsideofAmerenIllinois' control,asAmerenIllinoisisrequiredtopurchaseallofits powerthroughprocurementprocessesadministeredbythe IPA.AmerenIllinoisdoesnotexpecttheannualincreasein itsaverageresidentialratetoexceed2.5%throughMay
2014.Between2012and2021,AmerenIllinoisisrequired,pursuanttotheIEIMA,toinvest$625millionincapital projectsincrementaltoAmerenIllinois'averageelectric deliveryservicecapitalprojectsforcalendaryears2008 through2010tomodernizeitsdistributionsystem.Through 2013,AmerenIllinoisinvested$61millioninIEIMAcapital projectstowardits$625millionrequirement.Such investmentsareexpectedtoencourageeconomic developmentandtocreateanestimated450additionaljobs withinIllinois.AmerenIllinoisissubjecttomonetary penaltiesif450additionaljobsarenotcreatedduringthe peakprogramyear.AmerenIllinoisemployscostrecoverymechanismsforpowerprocurement,energyefficiencyprograms,certain environmentalcosts,andbaddebtexpensenotrecoveredin baserates.AmerenIllinoisalsohasatariffridertorecover thecostsofcertainasbestos-relatedlitigationclaims.BecauseAmerenIllinoisisamemberofMISO,itstransmissionrateiscalculatedinaccordancewiththeMISO OATT.Currently,theFERC-allowedreturnoncommon equityintheratemakingformulaforMISOtransmission ownersis12.38%.AmerenIllinoishasreceivedFERC approvaltouseacompany-specific,forward-lookingrate formulaframeworkinsettingitstransmissionrates.These forward-lookingratesareupdatedeachJanuarywith forecastedinformation,withasubsequentreconciliation duringtheyeartoadjustfortheactualrevenuerequirement andactualbilledrevenues,whichwillbeusedtoadjustbillingratesinasubsequentyear.InIllinois,theAMIL pricingzonerateischargeddirectlytowholesalecustomers andalternativeretailelectricsuppliers,whichserve unbundledretailload.ForAmerenIllinoisretailcustomers whohavenotchosenanalternativeretailelectricsupplier, theAMILtransmissionrate,andotherMISO-relatedcosts arecollectedthrougharidermechanisminAmerenIllinois' retaildistributiontariffs.NaturalGasAmerenIllinois'naturalgasoperatingrevenuesaresubjecttoregulationbytheICC.InDecember2013,theICCissuedarateorderthatapprovedanincreaseinrevenuesfornaturalgasdeliveryserviceof$32million.Therevenueincreasewasbasedona 9.1%returnonequity,acapitalstructurecomposedof 51.7%commonequity,andaratebaseof$1.1billion.The rateorderwasbasedona2014futuretestyear.Therate changesbecameeffectiveJanuary1,2014.AmerenIllinois expectstofileanappealoftheICC'sordertotheAppellate CourtinMarch2014.Ifcertaincriteriaaremet,AmerenIllinois'naturalgasratesmaybeadjustedwithoutatraditionalrateproceeding.
PGAclausespermitprudentlyincurrednaturalgascoststo bepasseddirectlytocustomers.Also,AmerenIllinois employscostrecoverymechanismsforenergyefficiency programs,certainenvironmentalcosts,andbaddebt expensenotrecoveredinbaserates.InJuly2013,IllinoisenactedtheNaturalGasConsumer,SafetyandReliabilityAct,whichencourages Illinoisnaturalgasutilitiestoacceleratemodernizationof thestate'snaturalgasinfrastructureandprovidesadditional ICCoversightofnaturalgasutilityperformance.Thelaw allowsnaturalgasutilitiestheoptiontofilefor,andrequires theICCtoapprove,arateridermechanismtorecovercosts ofcertainnaturalgasinfrastructureinvestmentsmade betweenratecases.Thelawdoesnotrequireaminimum levelofinvestment.AmerenIllinoisexpectstobegin includinginvestmentsunderthisregulatoryframeworkin 2015.AmerenIllinois'decisiontoacceleratemodernization ofitsnaturalgasinfrastructureunderthisregulatory frameworkisdependentuponmultipleconsiderations, includingtheallowedreturnonequityunderthisregulatory frameworkcomparedwithotherAmerenandAmeren Illinoisinvestmentoptions.
ATXISimilartoAmerenIllinois,ATXIisamemberofMISO,anditstransmissionrateiscalculatedinaccordancewiththeMISOOATT.Currently,theFERC-allowedreturnon commonequityintheratemakingformulaforMISO transmissionownersis12.38%.ATXIhasreceivedFERC approvaltouseacompany-specific,forward-lookingrate formulaframeworkinsettingitstransmissionrates.These forward-lookingratesareupdatedeachJanuarywith forecastedinformation,withasubsequentreconciliation duringtheyeartoadjustfortheactualrevenuerequirement 8
andactualbilledrevenues,whichwillbeusedtoadjustbillingratesinasubsequentyear.Additionally,FERChas approvedtransmissionrateincentivesrelatingtothethree MISO-approvedmulti-valueprojectsdiscussedbelow, whichallowconstructionworkinprogresstobeincludedin ratebase,therebyimprovingcashflows.ThethreeMISO-approvedmulti-valueprojectsbeingdevelopedbyATXIaretheIllinoisRivers,SpoonRiver,and MarkTwainprojects.Thefirstproject,IllinoisRivers, involvestheconstructionofa345-kilovoltlinefromwestern IndianaacrossthestateofIllinoistoeasternMissouri.ATXI obtainedacertificateofpublicconvenienceandnecessity andprojectapprovalfromtheICCfortheentireIllinois Riversproject.Afullrangeofconstructionactivitiesforthe IllinoisRiversprojectisscheduledin2014.Thefirst sectionsoftheIllinoisRiversprojectareexpectedtobe completedin2016.Thelastsectionofthisprojectis expectedtobecompletedin2019.TheSpoonRiverproject innorthwestIllinoisandtheMarkTwainprojectinnortheast MissouriaretheothertwoprojectsapprovedbyMISO.
Thesetwoprojectsareexpectedtobecompletedin2018.
Thetotalinvestmentinthesethreeprojectsisexpectedto bemorethan$1.4billionthrough2019.ForadditionalinformationonIllinoisratematters,seeResultsofOperationsandOutlookinManagement's DiscussionandAnalysisofFinancialConditionandResults ofOperationsunderPartII,Item7,Quantitativeand QualitativeDisclosuresAboutMarketRiskunderPartII, Item7A,andNote2-RateandRegulatoryMattersand Note15-CommitmentsandContingenciesunderPartII, Item8,ofthisreport.GeneralRegulatoryMattersAmerenMissouriandAmerenIllinoismustreceiveFERCapprovaltoenterintovarioustransactions,suchasissuingshort-termdebtsecuritiesandconductingcertain acquisitions,mergers,andconsolidationsinvolvingelectric utilityholdingcompanieswithavalueinexcessof
$10million.Inaddition,theseAmerenutilitiesmustreceive authorizationfromtheapplicablestatepublicutility regulatoryagencytoissuestockandlong-termdebt securities(withmaturitiesofmorethan12months)andto conductmergers,affiliatetransactions,andvariousother
activities.AmerenMissouri,AmerenIllinoisandATXIarealsosubjecttomandatoryreliabilitystandards,including cybersecuritystandardsadoptedbyFERC,toensurethe reliabilityofthebulkpowerelectricsystem.These standardsaredevelopedandenforcedbyNERCpursuantto authoritygiventoitbyFERC.IfAmerenoritssubsidiaries werefoundnottobeincompliancewithanyofthese mandatoryreliabilitystandards,theycouldincursubstantial monetarypenaltiesandothersanctions.UnderPUHCA2005,FERCandanystatepublicutilityregulatoryagencymayaccessbooksandrecordsof AmerenanditssubsidiariesthataredeterminedtoberelevanttocostsincurredbyAmeren'srate-regulated subsidiarieswithrespecttojurisdictionalrates.PUHCA 2005alsopermitstheMoPSCandtheICCtorequestthat FERCreviewcostallocationsbyAmerenServicestoother Amerencompanies.OperationofAmerenMissouri'sCallawayenergycenterissubjecttoregulationbytheNRC.Itsfacility operatinglicenseexpiresinOctober2024.InDecember 2011,AmerenMissourisubmittedalicenseextension applicationtotheNRCtoextendtheenergycenter's operatinglicenseto2044.Thereisnodatebywhichthe NRCmustactonthisrelicensingrequest.Ameren Missouri'sOsagehydroelectricenergycenterandAmeren Missouri'sTaumSaukpumped-storagehydroelectric energycenter,aslicensedprojectsundertheFederalPower Act,aresubjecttoFERCregulationsaffecting,amongother things,thegeneraloperationandmaintenanceofthe projects.ThelicenseforAmerenMissouri'sOsage hydroelectricenergycenterexpiresinMarch2047.InJune 2008,AmerenMissourifiledarelicensingapplicationwith FERCtooperateitsTaumSaukpumped-storage hydroelectricenergycenterforanother40years.The existingFERClicenseexpiredonJune30,2010.InJuly 2010,AmerenMissourireceivedalicenseextensionthat allowsTaumSauktocontinueoperationsuntilFERCissues anewlicense.FERCisreviewingtherelicensingapplication.
AFERCorderisexpectedin2014.AmerenMissouricannot predicttheultimateoutcomeoftheorder.Ameren Missouri'sKeokukenergycenteranditsdaminthe MississippiRiverbetweenHamilton,Illinois,andKeokuk, Iowa,areoperatedunderauthoritygrantedbyanActof Congressin1905.Foradditionalinformationonregulatorymatters,seeNote2-RateandRegulatoryMatters,Note10-Callaway EnergyCenter,andNote15-Commitmentsand ContingenciesunderPartII,Item8,ofthisreport.EnvironmentalMattersCertainofouroperationsaresubjecttofederal,state,andlocalenvironmentalstatutesandregulationsrelatingtothesafetyandhealthofpersonnel,thepublic,andthe environment.Theseenvironmentalstatutesandregulations includerequirementsrelatingtoidentification,generation, storage,handling,transportation,disposal,recordkeeping, labeling,reporting,andemergencyresponseinconnection withhazardousandtoxicmaterials;safetyandhealth standards;andenvironmentalprotectionrequirements, includingstandardsandlimitationsrelatingtothedischarge ofairandwaterpollutantsandthemanagementofwaste andbyproductmaterials.Failuretocomplywiththose statutesorregulationscouldhavematerialadverseeffects onus.Wecouldbesubjecttocriminalorcivilpenaltiesby regulatoryagenciesorwecouldbeorderedbythecourtsto payprivateparties.Exceptasindicatedinthisreport,we believethatweareinmaterialcompliancewithexisting statutesandregulationsthatcurrentlyapplytoour
operations.
9 TheEPAisdevelopingenvironmentalregulationsthatwillhaveasignificantimpactontheelectricutilityindustry.Overtime,compliancewiththeseregulationscouldbe particularlycostlyforcertaincompanies,includingAmeren Missouri,thatoperatecoal-firedenergycenters.Significant newrulesproposedorpromulgatedincludetheregulation ofCO 2emissionsfromnewenergycenters;revisednationalambientairqualitystandardsforozone,fineparticulates, SO 2,andNO xemissions;theCSAPR,whichwouldhaverequiredfurtherreductionsofSO 2emissionsandNO xemissionsfromenergycenters;aregulationgoverning managementofCCRandcoalashimpoundments;the MATS,whichrequirereductionofemissionsofmercury, toxicmetals,andacidgasesfromenergycenters;revised NSPSforparticulatematter,SO 2,andNO xemissionsfromnewsources;neweffluentstandardsapplicabletowaste waterdischargesfromenergycentersandnewregulations undertheCleanWaterActthatcouldrequiresignificant capitalexpenditures,suchasmodificationstowaterintake structuresornewcoolingtowersatourenergycenters.The EPAisexpectedtoproposeCO 2standardsforexistingfossilfuel-firedelectricgenerationunitsinthefuture.Thesenew andproposedregulations,ifadopted,maybechallenged throughlitigation,sotheirultimateimplementation,aswell asthetimingofanysuchimplementation,isuncertain.
Althoughmanydetailsofthesefutureregulationsare unknown,thecombinedeffectsofthenewandproposed environmentalregulationsmayresultinsignificantcapital expendituresandincreasedoperatingcostsoverthenext fivetotenyearsforAmerenandAmerenMissouri.
Compliancewiththeseenvironmentallawsandregulations couldbeprohibitivelyexpensiveorcouldresultinthe closureoralterationoftheoperationofsomeofourenergy centers.AmerenandAmerenMissouriwouldexpectthese coststoberecoverablethroughrates,butthenatureand timingofcosts,aswellastheapplicableregulatory framework,couldresultinregulatorylag.Foradditionaldiscussionofenvironmentalmatters,includingNO x,SO 2,andmercuryemissionreductionrequirements,remediationefforts,andadiscussionofthe EPA'sallegationsofviolationsoftheCleanAirActand MissourilawinconnectionwithprojectsatAmeren Missouri'sRushIslandenergycenter,seeLiquidityand CapitalResourcesinManagement'sDiscussionand AnalysisofFinancialConditionandResultsofOperations underPartII,Item7,andNote15-Commitmentsand ContingenciesunderPartII,Item8,ofthisreport.TRANSMISSIONANDSUPPLYOFELECTRICPOWERAmerenownsanintegratedtransmissionsystemthatcomprisesthetransmissionassetsofAmerenMissouri,AmerenIllinoisandATXI.Amerenalsooperatestwo balancingauthorityareas,AMMO(whichincludesAmeren Missouri'scustomers),andAMIL(whichincludesAmeren Illinois'customers).During2013,thepeakdemandwas 8,146megawattsinAMMOand8,899megawattsinAMIL.
TheAmerentransmissionsystemdirectlyconnectswith15 otherbalancingauthorityareasfortheexchangeofelectric
energy.AmerenMissouri,AmerenIllinoisandATXIaretransmission-owningmembersofMISO.AmerenMissouri isauthorizedbytheMoPSCtoparticipateinMISO,subject tocertainconditions,throughMay2016,includingthe conditionthatAmerenMissourilaterfileastudywiththe MoPSCthatevaluatesthecostsandbenefitsofAmeren Missouri'scontinuedparticipationinMISO,asithas periodicallydonesinceitsMISOparticipationbeganin 2003.ThenextstudyisrequiredtobefiledwiththeMoPSC inNovember2015.TheAmerenCompaniesaremembersofSERC.SERCisresponsibleforthebulkelectricpowersupplysystemin allorportionsofMissouri,Illinois,Arkansas,Kentucky, Tennessee,NorthCarolina,SouthCarolina,Georgia, Mississippi,Alabama,Louisiana,Virginia,Florida, Oklahoma,Iowa,andTexas.AsaresultoftheEnergyPolicy Actof2005,ownersandoperatorsofthebulkelectric powersystemaresubjecttomandatoryreliabilitystandards promulgatedbyNERCanditsregionalentities,suchas SERC,whichareallenforcedbyFERC.TheAmeren Companiesmustcomplywiththesestandards,whicharein placetoensurethereliabilityofthebulkelectricpower
system.SeeNote2-RateandRegulatoryMattersunderPartII,Item8,ofthisreportforadditionalinformation.AmerenMissouriAmerenMissouri'selectricsupplyisobtainedprimarilyfromitsowngeneration.FactorsthatcouldcauseAmerenMissouritopurchasepowerinclude,amongotherthings, absenceofsufficientownedgeneration,energycenter outages,thefulfillmentofrenewableenergyportfolio requirements,thefailureofsupplierstomeettheirpower supplyobligations,extremeweatherconditions,andthe availabilityofpoweratacostlowerthanthecostof generatingit.AmerenMissouricontinuestoevaluateitslonger-termneedsfornewbaseload,includingnuclearandpeaking electricgenerationcapacity.SeeEnergyEfficiencyinthis sectionforinformationonAmerenMissouri'senergy efficiencyprogramsandassociatedcostrecovery mechanisms.Thepotentialneedfornewenergycenter constructionisdependentonseveralkeyfactors,including continuationofenergyefficiencyprogramsbeyond2015, loadgrowth,customerparticipationinenergyefficiency programs,andthepotentialformorestringent environmentalregulationofcoal-firedenergycenters,which couldleadtotheretirementofcurrentbaseloadassetsor alterationsinthemannerinwhichthoseassetsoperate.
Becauseofthesignificanttimerequiredtoplan,acquire permitsfor,andbuildabaseloadenergycenter,Ameren Missouricontinuestostudyfuturealternativesandistaking stepstopreserveoptionstomeetfuturedemand.These stepsincludeevaluatingthepotentialforfurtherenergy efficiencyprogramsandevaluatingpotentialsitesfor naturalgas-firedgeneration.AmerenMissouriisalso exploringoptionstoexpandrenewablegenerationand furtherdiversifyitsgenerationportfolio.AmerenMissouri's 10 nextIntegratedResourcePlanfilingwiththeMoPSCisdueinOctober2014.SeealsoOutlookinManagement'sDiscussionandAnalysisofFinancialConditionandResultsofOperations underPartII,Item7,andNote2-RateandRegulatory MattersandNote15-CommitmentsandContingencies underPartII,Item8,ofthisreport.AmerenIllinoisAnyelectricsupplypurchasedbyAmerenIllinoisforitsretailcustomerscomeseitherthroughanannualprocurementprocessconductedbytheIPAorthrough marketsoperatedbyMISO.Thepowerandrelated procurementcostsincurredbyAmerenIllinoisarepassed directlytoitscustomersthroughacostrecovery
mechanism.TheIPAadministersanRFPprocessthatprocuresAmerenIllinois'expectedsupplyobligation.SincetheRFP processbeganin2009,theICChasapprovedtheoutcomesofmultipleelectricpowerprocurementRFPsforenergy, capacity,andrenewableenergycreditscoveringdifferent timeperiods.UnderIllinoislaw,transmissionanddistributionserviceratesareregulated,whileelectriccustomersare allowedtopurchasepowerfromanalternativeretailelectric supplier.AtDecember31,2013,approximately768,000 retailcustomersrepresentingapproximately72%of AmerenIllinois'annualretailkilowatthoursaleshadelected topurchasetheirelectricityfromalternativeretailelectric suppliers.Customerswhoreceiveelectricityfrom alternativeretailelectricsupplierscontinuetopayadelivery chargetoAmerenIllinoisforthedistributionservicesthey receivefromAmerenIllinois.SeeNote2-RateandRegulatoryMatters,Note14-RelatedPartyTransactionsandNote15-Commitments andContingenciesunderPartII,Item8,ofthisreportfor additionalinformationonpowerprocurementinIllinois.POWERGENERATIONThefollowingtablepresentsthesourceofelectricgeneration,excludingpurchasedpower,fortheyearsendedDecember31,2013,2012,and2011:CoalNuclearNaturalGasRenewables (a)OilAmerenandAmerenMissouri:
2013...............................................77%19%(b)3%(b) 2012...............................................732412(b) 2011...............................................771913(b)(a)RenewablepowergenerationincludesproductionfromAmerenMissouri'shydroelectric,pumped-storage,andmethanegasenergycenters,butexcludespurchasedrenewableenergycredits.(b)Lessthan1%oftotalfuelsupply.ThefollowingtablepresentsthecostoffuelsforelectricgenerationfortheyearsendedDecember31,2013,2012,and 2011:CostofFuels(dollarspermmbtu)201320122011AmerenandAmerenMissouri:
Coal (a).......................................................................$2.050$1.925$1.733 Nuclear......................................................................
0.9420.9640.750Naturalgas (b)..................................................................
7.9074.5175.873Weightedaverage-allfuels (c)....................................................$1.874$1.743$1.610(a)Representsthecostofcoalandthecostsfortransportation,whichincludehedgesforrailroaddieselfuelsurcharges.
(b)Representsthecostofnaturalgasandfirmandvariablecostsfortransportation,storage,balancing,andfuellossesfordeliverytotheenergycenter.Inaddition,thefixedcostsforfirmtransportationandfirmstoragecapacityareincludedinthecalculationoffuelcostfortheenergy
centers.(c)Representsallcostsforfuelsusedinourenergycenters,totheextentapplicable,includingcoal,nuclear,naturalgas,methanegas,oil,propane,tirechips,paintproducts,andhandling.Methanegas,oil,propane,tirechips,andpaintproductsarenotindividuallylistedinthis tablebecausetheiruseisminimal.
CoalAmerenMissourihasagreementsinplacetopurchaseaportionofthecoalitneedsandtotransportittoenergycentersthrough2019.AmerenMissouriexpectstoenterinto additionalcontractstopurchasecoalfromtimetotime.Coal supplyagreementsforAmerenMissourihavetermsofupto sixyears,andexpirebetween2014and2017.AmerenMissourihasanongoingneedforcoaltoserveitsnativeload customers,soitpursuesaprice-hedgingstrategyconsistent withthisrequirement.AmerenMissouriburned19million tonsofcoalin2013.SeePartII,Item7A-Quantitativeand QualitativeDisclosuresAboutMarketRiskofthisreportfor additionalinformationaboutcoalsupplycontracts.
11 About98%ofAmerenMissouri'scoalispurchasedfromthePowderRiverBasininWyoming.TheremainingcoalistypicallypurchasedfromtheIllinoisBasin.Inventory maybeadjustedbecauseofgenerationlevelsor uncertaintiesofsupplyduetopotentialworkstoppages, delaysincoaldeliveries,equipmentbreakdowns,andother factors.Inthepast,deliveriesfromthePowderRiverBasin haveoccasionallybeenrestrictedbecauseofrail maintenance,weather,andderailments.Asof December31,2013,coalinventoriesforAmerenMissouri wereabout20%belowtargetedlevelsduetofloodingand weather-relateddeliverydelays.Disruptionsincoal deliveriescouldcauseAmerenMissouritopursuea strategythatcouldincludereducingsalesofpowerduring low-marginperiods,buyinghigher-costfuelstogenerate requiredelectricity,andpurchasingpowerfromother
sources.NuclearThestepsintheprocesstoprovidenuclearfuelinvolvetheminingandmillingofuraniumoretoproduceuraniumconcentrates,theconversionofuraniumconcentratesto uraniumhexafluoridegas,theenrichmentofthatgas,and thefabricationoftheenricheduraniumhexafluoridegas intousablefuelassemblies.AmerenMissourihasentered intouranium,uraniumconversion,uraniumenrichment, andfabricationcontractstoprocurethefuelsupplyforits Callawaynuclearenergycenter.Fuelassembliesforthe2014fallrefuelingatAmerenMissouri'sCallawayenergycenterarescheduledfor manufactureanddeliverytotheenergycenterduringthe periodMaytoJuly2014.AmerenMissourialsohas agreementsorinventoriestoprice-hedgeapproximately 100%,71%,and60%ofCallaway's2014,2016and2017 refuelingrequirements,respectively.AmerenMissourihas uranium(concentrateandhexafluoride)inventoriesand supplycontractssufficienttomeetallofitsuraniumand conversionrequirementsthroughatleast2018.Ameren Missourihasenricheduraniuminventoriesandenrichment supplycontractssufficienttosatisfyenrichment requirementsthroughatleast2018.Fuelfabrication servicesareundercontractthrough2014.AmerenMissouri expectstoenterintoadditionalcontractstopurchase nuclearfuel.TheCallawayenergycenternormallyrequires refuelingat18-monthintervals.Thelastrefuelingwas completedinMay2013.Thereisnorefuelingscheduledfor 2015and2018.Thenuclearfuelmarketsarecompetitive, andpricescanbevolatile;however,wedonotanticipate anysignificantproblemsinmeetingourfuturesupply
requirements.NaturalGasSupplyforGenerationTomaintaindeliveriestonaturalgas-firedenergycentersthroughouttheyear,especiallyduringthesummerpeakdemand,AmerenMissouri'sportfolioofnaturalgas supplyresourcesincludesfirmtransportationcapacityand firmno-noticestoragecapacityleasedfrominterstate pipelines.AmerenMissouriprimarilyusestheinterstatepipelinesystemsofPanhandleEasternPipeLineCompany, TrunklineGasCompany,NaturalGasPipelineCompanyof America,andMississippiRiverTransmissionCorporationto transportnaturalgastoenergycenters.Inadditionto physicaltransactions,Amerenusesfinancialinstruments, includingsomeintheNYMEXfuturesmarketandsomein theOTCfinancialmarkets,tohedgethepricepaidfor naturalgas.AmerenMissouri'snaturalgasprocurementstrategyisdesignedtoensurereliableandimmediatedeliveryof naturalgastoitsenergycenters.Thisisaccomplishedby optimizingtransportationandstorageoptionsand minimizingcostandpriceriskthroughvarioussupplyand price-hedgingagreementsthatallowaccesstomultiplegas pools,supplybasins,andstorageservices.Asof December31,2013,AmerenMissourihadprice-hedged about27%ofitsexpectednaturalgassupplyrequirements forgenerationin2014.RenewableEnergyIllinoisandMissourihaveenactedlawsrequiringelectricutilitiestoincluderenewableenergyresourcesintheirportfolios.Illinoisrequiresrenewableenergyresources toequalorexceed2%ofthetotalelectricitythateach electricutilitysuppliedtoitseligibleretailcustomersasof June1,2008,withthatpercentageincreasingto10%by June1,2015,andto25%byJune1,2025.Forthe2013 planyear,AmerenIllinoismetitsrequirementthat8%ofits totalelectricityforeligibleretailcustomersbeprocured fromrenewableenergyresources.Currentforecasts indicatethatAmerenIllinoishascommittedtoprocure sufficientrenewableenergycreditsundertheIPA-administeredprocurementprocesstomeettherenewable energyportfoliorequirementthroughatleastMay2018.In December2010,AmerenIllinoisenteredinto20-year agreementswithrenewableenergysuppliers.Itbegan receivingrenewableenergycreditsundertheseagreements inJune2012.Approximately63%ofthe2014planyear renewableenergyrequirementisexpectedtobemet throughtheseagreements.Theremainingrequirementwill bemetthroughIPAprocurements,whichresultedin contractsthatwereexecutedinFebruary2012withaterm ofJune2013throughDecember2017.InMissouri,utilitiesarerequiredtopurchaseorgeneratefromrenewableenergysourceselectricityequaling atleast2%ofnativeloadsales,withthatpercentage increasingtoatleast15%by2021,subjecttoa1%annual limitoncustomerrateimpacts.Atleast2%ofeach renewableenergyportfoliorequirementmustbederived fromsolarenergy.AmerenMissouriexpectstosatisfythe nonsolarrequirementthrough2018withitsexisting renewablegeneration,includingtheMarylandHeights energycenter,alongwitha15-year102-megawattpower purchaseagreementwithawindfarmoperatorinIowathat becameeffectivein2009.TheMarylandHeightsenergy centergenerateselectricitybyburningmethanegas collectedfromalandfill.Currently,AmerenMissouriis meetingthesolarenergyrequirementthroughthepurchase 12 ofsolar-generatedrenewableenergycreditsandgenerationfromsolarpanelsinstalledonAmeren'sSt.Louis headquarters.InJanuary2014,AmerenMissouri announceditsplanstobuildasolarenergycenterwhich willgenerate5megawattsofsolarpower.Constructionis expectedtobegininthespringof2014,anddeliveryof powertocustomersisexpectedbytheendof2014.In 2013,AmerenMissouripurchasedorgeneratedabout5%
ofitsnativeloadsalesfromrenewableenergyresources, meetingitsrequirements.UnderthesameMissouristatuterequiringutilitiestopurchaseorgenerateenergyfromrenewablesources, AmerenMissouriisrequiredtohavearebateprogramto provideanincentiveforcustomerstoinstallsolar generationontheirpremises.Inaccordancewiththestatute anda2013MoPSCorder,AmerenMissouriisrequiredto provide$92millionofsolarrebatesby2020.Alsoincluded inits2013order,theMoPSCauthorizedAmerenMissouri toemployatrackerallowingAmerenMissouritorecordits costsincurredunderitssolarrebateprogramasa regulatoryasset.AmerenMissouriwillrecoverthecostsof theserebates,andthecarryingcostoftheregulatoryasset, whichisestimatedtobe$9million,overathree-yearperiod beginningwiththeeffectivedateofitsnextelectricrate
case.EnergyEfficiencyAmeren'srate-regulatedutilitieshaveimplementedenergyefficiencyprogramstoeducateandhelptheircustomersbecomemoreefficientusersofenergy.The MEEIAestablishedaregulatoryframeworkthat,among otherthings,allowselectricutilitiestorecovercostsrelated toMoPSC-approvedenergyefficiencyprograms.Thelaw requirestheMoPSCtoensurethatautility'sfinancial incentivesarealignedtohelpcustomersuseenergymore efficiently,toprovidetimelycostrecovery,andtoprovide earningsopportunitiesassociatedwithcost-effectiveenergy efficiencyprograms.Missouridoesnothavealaw mandatingenergyefficiencystandards.TheMoPSC'sDecember2012electricrateorderapprovedAmerenMissouri'simplementationofMEEIA megawatthoursavingstargets,energyefficiencyprograms, andassociatedcostrecoverymechanismsandincentive awards.In2013,AmerenMissouriinvested$35millionfor energyefficiencyprograms.AmerenMissouriexpectsto invest$48millionin2014and$64millionin2015forthese programs.AMEEIAriderallowsAmerenMissouritocollect fromorrefundtocustomersthrough2015anyannual differenceintheactualamountsincurredandtheprojected amountscollectedfromcustomersfortheMEEIAprogram costsanditsprojectedlostrevenues.Additionally,MEEIAprovidesanincentiveawardthatwouldallowAmerenMissouritoearnadditionalrevenues byachievingcertainenergyefficiencygoals,including approximately$19millionif100%ofitsenergyefficiency goalsareachievedduringthethree-yearperiod,withthe potentialtoearnmoreifAmerenMissouri'senergysavingsexceedthosegoals.AmerenMissourimustachieveatleast 70%ofitsenergyefficiencygoalsbeforeitearnsany incentiveaward.Therecoveryoftheincentiveawardfrom customers,iftheenergyefficiencygoalsareachieved,is expectedin2017throughtheabove-mentionedrider.See Note2-RateandRegulatoryMattersunderPartII,Item8, ofthisreportforadditionalinformation.IllinoishasenactedalawrequiringAmerenIllinoistoofferenergyefficiencyprograms.Thelawalsoallows recoverymechanismsoftheprograms'costs.TheICChas issuedordersapprovingAmerenIllinois'electricandnatural gasenergyefficiencyplansaswellascostrecovery mechanismsbywhichprogramcostscanberecovered fromcustomers.Inaddition,between2012and2021, AmerenIllinoisisrequired,pursuanttotheIEIMA,toinvest
$625millionincapitalprojectsincrementaltoAmeren Illinois'averageelectricdeliveryservicecapitalprojectsfor calendaryears2008through2010tomodernizeits distributionsystem.Aspartoftheseupgrades,Ameren Illinoisexpectstoinvest$360millionforsmartgrid infrastructure,includingsmartmeters,whichenables customerstoimproveefficiency.AmerenIllinoiswillbegin theinstallationofsmartmetersduring2014.NATURALGASSUPPLYFORDISTRIBUTIONAmerenMissouriandAmerenIllinoisareresponsibleforthepurchaseanddeliveryofnaturalgastotheirutilitycustomers.AmerenMissouriandAmerenIllinoiseach developandmanageaportfolioofnaturalgassupply resources.Theseincludefirmgassupplyunderterm agreementswithproducers,interstateandintrastatefirm transportationcapacity,firmstoragecapacityleasedfrom interstatepipelines,andon-systemstoragefacilitiesto maintainnaturalgasdeliveriestocustomersthroughoutthe yearandespeciallyduringpeakdemandperiods.Ameren MissouriandAmerenIllinoisprimarilyusePanhandle EasternPipeLineCompany,TrunklineGasCompany, NaturalGasPipelineCompanyofAmerica,MississippiRiver TransmissionCorporation,NorthernBorderPipeline Company,andTexasEasternTransmissionCorporation interstatepipelinesystemstotransportnaturalgastotheir systems.Inadditiontotransactionsrequiringphysical delivery,financialinstruments,includingthoseenteredinto intheNYMEXfuturesmarketandintheOTCfinancial markets,areusedtohedgethepricepaidfornaturalgas.
SeePartII,Item7A-QuantitativeandQualitative DisclosuresAboutMarketRiskofthisreportforadditional informationaboutnaturalgassupplycontracts.Naturalgas purchasecostsarepassedontocustomersofAmeren MissouriandAmerenIllinoisunderPGAclauses,subjectto prudencyreviewsbytheMoPSCandtheICC.Asof December31,2013,AmerenMissourihadprice-hedged 84%,andAmerenIllinoishadprice-hedged77%,ofits expected2014naturalgassupplyrequirements.Foradditionalinformationonourfuelandpurchasedpowersupply,seeResultsofOperations,Liquidityand CapitalResourcesandEffectsofInflationandChanging PricesinManagement'sDiscussionandAnalysisof 13 FinancialConditionandResultsofOperationsunderPartII,Item7,ofthisreport.AlsoseeQuantitativeandQualitative DisclosuresAboutMarketRiskunderPartII,Item7A,of thisreport,Note1-SummaryofSignificantAccounting Policies,Note7-DerivativeFinancialInstruments, Note10-CallawayEnergyCenter,Note14-RelatedParty Transactions,andNote15-Commitmentsand ContingenciesunderPartII,Item8ofthisreport.INDUSTRYISSUESWearefacingissuescommontotheelectricandnaturalgasutilityindustry.Theseissuesinclude:
politicalandregulatoryresistancetohigherrates; thepotentialforchangesinlaws,regulations,andpoliciesatthestateandfederallevel; cybersecurityrisk,includinglossofoperationalcontrol ofenergycentersandelectricandnaturalgas transmissionanddistributionsystemsand/orlossof data,suchasutilitycustomerdata,account information,andintellectualpropertythroughinsideror outsideractions; thepotentialformoreintensecompetitionin generation,supplyanddistribution,includingnew
technologies; pressureoncustomergrowthandusageinlightof economicconditionsandenergyefficiencyinitiatives; changesinthestructureoftheindustryasaresultof changesinfederalandstatelaws,includingthe formationandgrowthofindependenttransmission
entities;pressuretoreducetheallowedreturnoncommon equityonFERC-regulatedelectrictransmissionassets; theavailabilityoffuelandincreasesordecreasesinfuel
prices;theavailabilityofqualifiedlaborandmaterial,andrising
costs;regulatorylag; theinfluenceofmacroeconomicfactors,suchasyields onUnitedStatestreasurysecurities,onallowedratesof returnonequityprovidedbyregulators; decreasedornegativefreecashflowsduetorising infrastructureinvestmentsandregulatoryframeworks; publicconcernaboutthesitingofnewfacilities; continuallydevelopingandcomplexenvironmental laws,regulationsandrequirements,includingairand waterqualitystandards,mercuryemissionsstandards, andlikelygreenhousegaslimitationsandCCR managementrequirements; publicconcernsaboutthepotentialimpactstothe environmentfromthecombustionoffossilfuels; aginginfrastructureandtheneedtoconstructnew powergeneration,transmissionanddistribution facilities,whichhavelongtimeframesforcompletion, whileatthesametime,havinglittlelong-termvisibility onpowerandcommoditypricesandregulatory
requirements; legislationorproposalsforprogramstoencourageor mandateenergyefficiencyandrenewablesourcesof power,suchassolar,andthemacroeconomicdebate ofwhoshouldpayforthoseprograms; publicconcernsaboutnucleargenerationand decommissioningandthedisposalofnuclearwaste;
andconsolidationofelectricandnaturalgascompanies.Wearemonitoringtheseissues.Exceptasotherwisenotedinthisreport,weareunabletopredictwhatimpact,if any,theseissueswillhaveonourresultsofoperations, financialposition,orliquidity.Foradditionalinformation, seeRiskFactorsunderPartI,Item1A,andOutlookin Management'sDiscussionandAnalysisofFinancial ConditionandResultsofOperationsunderPartII,Item7, andNote2-RateandRegulatoryMattersandNote15-CommitmentsandContingenciesunderPartII,Item8,of thisreport.OPERATINGSTATISTICSThefollowingtablespresentkeyelectricandnaturalgasoperatingstatisticsforAmerenforthepastthreeyears:ElectricOperatingStatistics-YearEndedDecember31,201320122011ElectricSales-kilowatthours(inmillions):AmerenMissouri:
Residential
.................................................................
13,56213,38513,867 Commercial
.................................................................
14,63414,57514,743 Industrial
...................................................................
8,7098,6608,691 Other......................................................................
125126127Nativeloadsubtotal
........................................................
37,03036,74637,428Off-systemandwholesale
......................................................
6,1287,29310,715 Subtotal.................................................................
43,15844,03948,143 14 ElectricOperatingStatistics-YearEndedDecember31,201320122011AmerenIllinois:
ResidentialPowersupplyanddeliveryservice
.............................................
5,4749,50711,771Deliveryserviceonly
........................................................
6,3102,10377 CommercialPowersupplyanddeliveryservice
.............................................
2,6062,9853,662Deliveryserviceonly
........................................................
9,5419,1758,561 IndustrialPowersupplyanddeliveryservice
.............................................
1,6671,5951,502Deliveryserviceonly
........................................................
10,86111,75311,360 Other......................................................................
522523529Nativeloadsubtotal
........................................................
36,98137,64137,462Eliminateaffiliatesales
..........................................................
(82)-(17)Amerentotal
..............................................................
80,05781,68085,588ElectricOperatingRevenues(inmillions):AmerenMissouri:
Residential
.................................................................$1,428$1,297$1,272 Commercial
.................................................................
1,2161,0881,084 Industrial
...................................................................
491435438 Other......................................................................
6110476Nativeloadsubtotal
........................................................$3,196$2,924$2,870Off-systemandwholesale
......................................................
183208352 Subtotal.................................................................$3,379$3,132$3,222AmerenIllinois:
ResidentialPowersupplyanddeliveryservice
.............................................$501$961$1,194Deliveryserviceonly
........................................................
282903 CommercialPowersupplyanddeliveryservice
.............................................
215254350Deliveryserviceonly
........................................................
184177157 IndustrialPowersupplyanddeliveryservice
.............................................
705765Deliveryserviceonly
........................................................
44 46 43 Other......................................................................
165 154 128Nativeloadsubtotal
........................................................$1,461$1,739$1,940Eliminateaffiliaterevenuesandother
...............................................
(8)(14)(15)Amerentotal
..............................................................$4,832$4,857$5,147ElectricGeneration-AmerenMissouri-megawatthours(inmillions)
.....................
43.244.748.8Pricepertonofdeliveredcoal(average)-AmerenMissouri
.............................$36.19$34.21$30.57Amerensourceofenergysupply:
Coal.......................................................................
70.2%65.1%66.5%
Nuclear....................................................................
10.512.49.4 Hydroelectric
................................................................
1.61.11.3Naturalgas
.................................................................
1.12.71.1Methanegas
................................................................
0.1--Purchased-Wind
............................................................
0.40.40.3Purchased-Other
...........................................................
16.118.321.4 100.0%100.0%100.0%
15 GasOperatingStatistics-YearEndedDecember31,201320122011NaturalGasSales(millionsofdekatherms):AmerenMissouri:
Residential
.................................................................
8 67 Commercial
.................................................................
4 33 Industrial
...................................................................
1 11 Transport..................................................................
6 65 Subtotal.................................................................
191616AmerenIllinois:
Residential
.................................................................
624956 Commercial
.................................................................
211721 Industrial
...................................................................
6 55Transportandother
..........................................................
878680 Subtotal.................................................................
176157162Amerentotal
..............................................................
195173178NaturalGasOperatingRevenues(inmillions)
AmerenMissouri:
Residential
.................................................................$102$85$96 Commercial
.................................................................
423642 Industrial
...................................................................
8 89Transportandother
..........................................................
9109 Subtotal.................................................................$161$139$156AmerenIllinois:
Residential
.................................................................$611$547$588 Commercial
.................................................................
185172195 Industrial
...................................................................
262430Transportandother
..........................................................
254333 Subtotal.................................................................$847$786$846Eliminateaffiliaterevenues
.......................................................
(2)(1)(1)Amerentotal
..............................................................$1,006$924$1,001AVAILABLEINFORMATIONTheAmerenCompaniesmakeavailablefreeofchargethroughAmeren'swebsite(www.ameren.com)theirannualreportsonForm10-K,quarterlyreportsonForm10-Q, currentreportsonForm8-K,eXtensibleBusinessReporting Language(XBRL)documents,andanyamendmentsto thosereportsfiledwithorfurnishedtopursuanttoSections 13(a)or15(d)oftheExchangeActassoonasreasonably possibleaftersuchreportsareelectronicallyfiledwith,or furnishedto,theSEC.Thesedocumentsarealsoavailable throughanInternetwebsitemaintainedbytheSEC (www.sec.gov).Amerenalsousesitswebsiteasachannel ofdistributionofmaterialinformationrelatingtothe AmerenCompanies.Financialandothermaterial informationregardingtheAmerenCompaniesisroutinely postedtoandaccessibleatAmeren'swebsite.TheAmerenCompaniesalsomakeavailablefreeofchargethroughAmeren'swebsitethechartersofAmeren's boardofdirectors'auditandriskcommittee,human resourcescommittee,nominatingandcorporate governancecommittee,financecommittee,andnuclear oversightandenvironmentalcommittee;thecorporate governanceguidelines;apolicyregardingcommunications totheboardofdirectors;apolicyandprocedureswith respecttorelated-persontransactions;acodeofethicsfor principalexecutiveandseniorfinancialofficers;acodeofbusinessconductapplicabletoalldirectors,officersand employees;andadirectornominationpolicythatappliesto theAmerenCompanies.TheinformationonAmeren's website,oranyotherwebsitereferencedinthisreport,is notincorporatedbyreferenceintothisreport.ITEM1A.RISKFACTORSInvestorsshouldreviewcarefullythefollowingmaterialriskfactorsandtheotherinformationcontainedinthisreport.TherisksthattheAmerenCompaniesfacearenot limitedtothoseinthissection.Theremaybefurtherrisks anduncertaintiesthatarenotpresentlyknownorthatare notcurrentlybelievedtobematerialthatmayadversely affecttheresultsofoperations,financialposition,and liquidityoftheAmerenCompanies.SeeForward-Looking StatementsaboveandOutlookinManagement'sDiscussion andAnalysisofFinancialConditionandResultsof OperationsunderPartII,Item7,ofthisreport.TheAmerenCompaniesaresubjecttoextensiveregulationoftheirbusinesses,whichcouldadversely affecttheirresultsofoperations,financialposition,and
liquidity.TheAmerenCompaniesaresubjectto,oraffectedby,extensivefederal,state,andlocalregulation.Thisextensive regulatoryframework,somebutnotallofwhichismore specificallyidentifiedinthefollowingriskfactors,regulates, 16 amongothermatters,theelectricandnaturalgasutilityindustries;rateandcoststructureofutilities;operationof nuclearenergycenters;constructionandoperationof generation,transmission,anddistributionfacilities; acquisition,disposal,depreciationandamortizationof assetsandfacilities;transmissionreliability;andpresentor prospectivewholesaleandretailcompetition.TheAmeren Companiesmustaddressintheirplanningand managementofoperationstheeffectsofexistingand proposedlawsandregulationsandpotentialchangesinthe regulatoryframework,includinginitiativesbyfederaland statelegislatures,RTOs,utilityregulators,andtaxing authorities.Significantchangesinthenatureofthe regulationoftheAmerenCompanies'businessescould requirechangestotheirbusinessplanningand managementoftheirbusinessesandcouldadverselyaffect theirresultsofoperations,financialposition,andliquidity.
FailureoftheAmerenCompaniestoobtainadequaterates orregulatoryapprovalsinatimelymanner,failuretoobtain necessarylicensesorpermitsfromregulatoryauthorities, newormodifiedlaws,regulations,standards, interpretations,orotherlegalrequirements,orincreased compliancecostscouldadverselyimpacttheAmeren Companies'resultsofoperations,financialposition,and
liquidity.TheelectricandnaturalgasratesthatAmerenMissouriandAmerenIllinoisareallowedtochargeare determinedthroughregulatoryproceedings,whichare subjecttointerventionandappeal,andaresubjectto legislativeactions,whicharelargelyoutsideoftheir control.AnyeventsthatpreventAmerenMissourior AmerenIllinoisfromrecoveringtheirrespectivecostsor fromearningadequatereturnsontheirinvestmentscould adverselyaffecttheAmerenCompanies'resultsof operations,financialposition,andliquidity.TheratesthatAmerenMissouriandAmerenIllinoisareallowedtochargefortheirutilityservicessignificantly influencetheresultsofoperations,financialposition,and liquidityofthesecompaniesandAmeren.Theelectricand naturalgasutilityindustriesareextensivelyregulated.The utilityrateschargedtoAmerenMissouriandAmerenIllinois customersaredetermined,inlargepart,bygovernmental entities,includingtheMoPSC,theICC,andFERC.Decisions bytheseentitiesareinfluencedbymanyfactors,including thecostofprovidingservice,theprudencyofexpenditures, thequalityofservice,regulatorystaffknowledgeand experience,customerintervention,economicconditions, publicpolicy,andsocialandpoliticalviews.Decisionsmade bythesegovernmentalentitiesregardingratesarelargely outsideofAmerenMissouri'sandAmerenIllinois'control.
Ameren'sutilityoperationsareexposedtoregulatorylagto varyingdegreesbyjurisdiction,which,ifunmitigated,hasa materialadverseeffectonourresultsofoperations, financialposition,andliquidity.Rateordersarealsosubject toappeal,whichcreatesadditionaluncertaintyastothe ratesAmerenMissouriandAmerenIllinoiswillultimatelybe allowedtochargefortheirservices.AmerenMissourielectricandnaturalgasutilityratesandAmerenIllinoisnaturalgasutilityratesaretypically establishedinregulatoryproceedingsthattakeupto11 monthstocomplete.Ratesestablishedinthose proceedingsforAmerenMissouriareprimarilybasedon historicalcostsandrevenues.Naturalgasratesestablished inthoseproceedingsforAmerenIllinoismaybebasedon historicalorestimatedfuturecostsandrevenues.Thus,the ratesautilityisallowedtochargemaynotmatchitscosts atanygiventime.Ratesincludeanallowedrateofreturnon investmentsdeterminedbytheregulators.Althoughrate regulationispremisedonprovidinganopportunitytoearna reasonablerateofreturnoninvestedcapital,therecanbe noassurancethattheapplicableregulatorycommissionwill determinethatallthecostsofAmerenMissouriand AmerenIllinoishavebeenprudentlyincurredorthatthe regulatoryprocesswillresultinratesthatwillproducefull recoveryofsuchcostsoranadequatereturnonthose
investments.Inyearswhencapitalinvestmentsandoperationscostsrisewhilecustomerusagedeclines,AmerenMissouri andAmerenIllinoismaynotbeabletoearntheallowed returnestablishedbytheirstatecommissions.Thiscould resultinthedeferraloreliminationofplannedcapital investments,whichwouldreducetheratebaseinvestments fromwhichtheutilityoperationsearnarateofreturn.
Additionally,increasingratesforourcustomerscouldresult inadditionalregulatoryandlegislativeactions,aswellas competitiveandpoliticalpressures,whichcouldadversely affecttheAmerenCompanies'resultsofoperations, financialposition,andliquidity.Throughitsparticipationintheperformance-basedformularatemakingprocessestablishedpursuanttothe IEIMA,AmerenIllinois'returnonequityforitselectric distributionbusinesswillbedirectlycorrelatedtoyields onUnitedStatestreasurybonds.Additionally,Ameren IllinoiswillbesubjecttoanannualICCprudencereview, andAmerenIllinoiswillberequiredtoachieve performanceobjectives,increasecapitalspending levels,andmeetjobcreationtargets.Failuretomeet theserequirementscouldadverselyaffectAmeren Illinois'resultsofoperations,financialposition,and
liquidity.AmerenIllinoisisparticipatingintheperformance-basedformularatemakingprocessestablishedpursuantto theIEIMAforitselectricdistributionbusiness.TheICC annuallyreviewsAmerenIllinois'performance-basedrate filingsundertheIEIMAforreasonablenessandprudency.If theICCweretoconcludethatAmerenIllinois'incurred costswerenotprudentlyincurred,theICCwoulddisallow recoveryofsuchcosts.Thereturnonequitycomponentoftheformularateisequaltotheaverageforthecalendaryearofthemonthly yieldsof30-yearUnitedStatestreasurybondsplus580 basispoints.Therefore,AmerenIllinois'annualreturnon equityundertheformularatemakingprocessforitselectric distributionbusinessisdirectlycorrelatedtoyieldsonsuch bonds,whichareoutsideofAmerenIllinois'control.
17 AmerenIllinoisisalsosubjecttoperformancestandards.Failuretoachievethestandardswouldresultinareductioninthecompany'sallowedreturnonequity calculatedundertheformula.TheIEIMAprovidesforreturn onequitypenaltiestotaling30basispointsin2013through 2015,34basispointsin2016through2018,and38basis pointsin2019through2022iftheperformancestandards arenotmet.Between2012and2021,AmerenIllinoisisrequiredtoinvest$625millionincapitalprojectsincrementalto AmerenIllinois'averageelectricdeliverycapitalprojectsfor calendaryears2008through2010tomodernizeits distributionsystem.AmerenIllinoisissubjecttomonetary penaltiesif450additionaljobsarenotcreatedinIllinois duringthepeakprogramyear.Theformularatemakingprocesswouldterminateiftheaverageresidentialrateincreasesbymorethan2.5%
annuallyfromJune2011throughMay2014.Theaverage residentialrateincludesgenerationservice,whichisoutside ofAmerenIllinois'control,asAmerenIllinoisisrequiredto purchaseallofitspowerthroughprocurementprocesses administeredbytheIPA.Iftheperformance-basedformula rateprocessisterminated,AmerenIllinoiswouldbe requiredtoestablishfutureratesthroughatraditionalrate proceedingwiththeICC,whichmightnotresultinrates thatproduceafullortimelyrecoveryofcostsoran adequatereturnoninvestments.Unlessitisextended,the IEIMAformularatemakingprocessexpiresin2017.Customers',legislators'andregulators'opinionsofusareaffectedbyourabilitytoprovidereliableutility servicetoourcustomers.Failuretoprovidesuchreliable utilityservicecouldresultincustomersandregulators havinganegativeopinionofus,which,inturn,could adverselyaffecttheAmerenCompanies'resultsof operations,financialposition,andliquidity.Ameren'sutilitysubsidiariesprovideutilityserviceto2.4millionelectriccustomersand0.9millionnaturalgas customers.Serviceinterruptionsduetofailuresof equipmentorfacilitiesasaresultofsevereordestructive weatherorothercauses,andtheabilityofAmerenMissouri andAmerenIllinoistopromptlyrespondtosuchfailures, canaffectcustomersatisfaction.Inadditiontosystem reliabilityissues,thesuccessofmodernizationefforts,such asthoseplannedforAmerenIllinois'electricandnatural gasdeliverysystems,andotherpublicactionsofthe AmerenCompaniescanaffectcustomersatisfaction.Rate increasesandvolatilityofratescanalsoaffectcustomer
satisfaction.Ifcustomers,legislatorsorregulatorshaveanegativeopinionofusandourutilityservices,thiscouldresultin increasedregulatoryoversightoftheAmerenCompanies andcouldimpactthereturnsoncommonequityweare allowedtoearn.Additionally,negativeopinionsofthe AmerenCompaniescouldmakeitmoredifficultforour utilitiestoachievefavorablelegislativeorregulatory outcomes.Anyoftheseconsequencescouldadversely affecttheAmerenCompanies'resultsofoperations, financialposition,andliquidity.Energyconservation,energyefficiency,distributedgeneration,andotherfactorsthatreduceenergydemand couldadverselyaffecttheAmerenCompanies'resultsof operations,financialposition,andliquidity.Regulatoryandlegislativebodieshaveproposedorintroducedrequirementsandincentivestoreduceenergy consumption.Conservationandenergyefficiencyprograms aredesignedtoreduceenergydemand.Unlessthereisa regulatorysolutionensuringrecovery,decliningusagewill resultinanunder-recoveryoffixedcostsatourrate-regulatedbusinesses.AmerenMissouri,evenwiththe implementationofenergyefficiencyprogramsunderthe MEEIA,isexposedtodecliningusagelossesfromenergy efficiencyeffortsnotrelatedtoitsspecificprogramsaswell asdistributedgenerationsourcessuchassolarpanels.
Macroeconomicfactorsresultinginloweconomicgrowth orcontractionwithintheAmerenCompanies'service territoriescouldalsoreduceenergydemand.Wearesubjecttovariousenvironmentallawsandregulations.Significantcapitalexpendituresarerequired toachieveandmaintaincompliancewiththeirstandards.
Failuretomeetthesestandardscouldresultinclosureof facilities,alterationstothemannerinwhichthese facilitiesoperate,increasedoperatingcosts,adverse impactstoourresultsofoperations,financialposition, andliquidity,orexposuretofinesandliabilities.Wearesubjecttovariousenvironmentallawsandregulationsenforcedbyfederal,state,andlocalauthorities.
Fromthebeginningphasesofsitinganddevelopmenttothe operationofexistingornewelectricgenerating, transmissionanddistributionfacilitiesandnaturalgas storage,transmissionanddistributionfacilities,our activitiesinvolvecompliancewithdiverseenvironmental lawsandregulations.Theselawsandregulationsaddress emissions;waterdischargesandusage;impactstoair, land,andwater;noise;protectednaturalandcultural resources(suchaswetlands,endangeredspecies,and otherprotectedwildlife,andarchaeologicalandhistorical resources);andchemicalandwastehandling.Complexand lengthyprocessesarerequiredtoobtainapprovals,permits, orlicensesfornew,existing,ormodifiedfacilities.
Additionally,theuseandhandlingofvariouschemicalsor hazardousmaterials(includingwastes)requiresrelease preventionplansandemergencyresponseprocedures.Wearealsosubjecttoliabilityunderenvironmentallawsthataddresstheremediationofenvironmental contaminationofpropertynoworformerlyownedbyusor byourpredecessors,aswellaspropertycontaminatedby hazardoussubstancesthatwegenerated.Suchsitesinclude MGPsitesandthird-partysites,suchaslandfills.
Additionally,privateindividualsmayseektoenforce environmentallawsandregulationsagainstusandcould allegeinjuryfromexposuretohazardousmaterialsorseek tocompelremediationofenvironmentalcontaminationor recoverdamagesresultingfromthatcontamination.TheEPAisdevelopingenvironmentalregulationsthatwillhaveasignificantimpactontheelectricutilityindustry 18 overtime.Theseregulationscouldbeparticularlyburdensomeforcertaincompanies,includingAmeren Missouri,thatoperatecoal-firedenergycenters.Thesenew regulationsmaybelitigated,sothetimingoftheirultimate implementationandourrequiredcomplianceisuncertain.Amerenisalsosubjecttorisksinconnectionwithchangingorconflictinginterpretationsofexistinglawsand regulations.TheEPAisengagedinanenforcementinitiative todeterminewhethercoal-firedenergycentersfailedto complywiththerequirementsoftheNSRandNSPS provisionsundertheCleanAirActwhentheenergycenters implementedmodifications.InJanuary2011,the DepartmentofJusticeonbehalfoftheEPAfiledacomplaint againstAmerenMissouriintheUnitedStatesDistrictCourt fortheEasternDistrictofMissouri.TheEPA'scomplaint,as amendedinOctober2013,allegesthatinperforming projectsatitsRushIslandcoal-firedenergycenterin2007 and2010,AmerenMissouriviolatedprovisionsoftheClean AirActandMissourilaw.InJanuary2012,theUnited StatesDistrictCourtgranted,inpart,AmerenMissouri's motiontodismissvariousaspectsoftheEPA'spenalty claims.TheEPA'sclaimsforunspecifiedinjunctiverelief remain.Trialinthismatteriscurrentlyscheduledtobegin inJanuary2015.Anoutcomeinthismatteradverseto AmerenMissouricouldrequiresubstantialcapital expendituresandthepaymentofsubstantialpenalties, neitherofwhichcanbedeterminedatthistime.Such expenditurescouldaffectunitretirementandreplacement
decisions.AmerenandAmerenMissourihaveincurredandexpecttoincursignificantcostsrelatedtoenvironmental complianceandsiteremediation.Newenvironmental regulations,revisedenvironmentalregulations,enforcement initiatives,orlegislationcouldresultinasignificantincrease incapitalexpendituresandoperatingcosts,decreased revenues,increasedfinancingrequirements,penalties,or fines,orclosureoffacilitiesforAmerenandAmeren Missouri.Actionsrequiredtoensurethatourfacilitiesand operationsareincompliancewithenvironmentallawsand regulationscouldbeprohibitivelyexpensiveifthecostsare notrecoveredthroughrates.Asaresult,environmental lawscouldalsorequireustocloseortosignificantlyalter theoperationofourenergycenters,whichcouldhavean adverseeffectonourresultsofoperations,financial position,andliquidity.CostsincurredbyAmerenMissouri toensurethatitsfacilitiesareincompliancewith environmentallawsandregulationswouldbeeligiblefor recoveryinratesovertime,subjecttoMoPSCapprovalina rateproceeding.Weareunabletopredicttheultimate impactofthesemattersonourresultsofoperations, financialposition,andliquidity.FuturelimitsongreenhousegasemissionsmayrequireAmerenMissouritoincursignificantincreasesin capitalexpendituresandoperatingcosts,which,if excessiveandnotrecoverablethroughrateproceedings, couldresultintheclosuresofcoal-firedenergycenters, impairmentofassets,orotherwiseadverselyaffectour resultsofoperations,financialposition,andliquidity.Stateandfederalauthorities,includingtheUnitedStatesCongress,haveconsideredinitiativestolimit greenhousegasemissions.Potentialimpactsfromany suchlegislationorregulationcouldvary,dependingupon proposedCO 2emissionlimits,thetimingofimplementationofthoselimits,themethodofdistributinganyallowances, thedegreetowhichoffsetsareallowedandavailable,and provisionsforcost-containmentmeasures,suchasa "safetyvalve"provisionthatprovidesamaximumpricefor emissionallowances.Emissionsofgreenhousegasesvary amongourenergycenters,butcoal-firedenergycentersare significantsourcesofCO 2.TheenactmentofalawthatrestrictsemissionsofCO 2orrequiresenergycenterstopurchaseallowancesforCO 2emissioncouldresultinasignificantincreaseinratesforelectricity,andaccordingly, inhouseholdcosts.Theburdencouldfallparticularlyhard onelectricityconsumersandtheeconomyintheMidwest becauseoftheregion'srelianceonelectricitygeneratedby coal-firedenergycenters.InJune2013,theObamaadministrationannouncedthatithaddirectedtheEPAtosetCO 2emissionsstandardsforbothnewandexistingpowerplants.TheEPApublished proposedregulationsinJanuary2014thatwouldset revisedCO 2emissionsstandardsfornewelectricitygeneratingunits.Theproposedstandardswouldestablish separateemissionslimitsfornewnaturalgas-firedplants andnewcoal-firedplants.Inaddition,theObama administrationdirectedtheEPAtoproposeaCO 2 emissionsstandardforexistingpowerplantsbyJune2014andto finalizesuchstandardsbyJune2015.Futurefederalorstatelegislationorregulationsthatmandatelimitsontheemissionofgreenhousegaseswould likelyresultinsignificantincreasesinourcapital expendituresandoperatingcosts,which,inturn,couldlead toincreasedliquidityneedsandhigherfinancingcosts.
Moreover,ifAmerenMissourirequestsrecoveryofthese coststhroughrates,itsregulatorscoulddenysomeorallof thesecosts,orpreventtimelyrecoveryofthem.Excessive coststocomplywithfuturelegislationorregulationsthat arenotrecoverablethroughrateproceedingsmightforce AmerenMissouritoclosecoal-firedenergycentersearlier thanplanned,whichwouldleadtoimpairmentofassetsand reducedrevenues.Asaresult,greenhousegasemission limitscouldhaveamaterialadverseimpactonAmeren's andAmerenMissouri'sresultsofoperations,financial position,andliquidity.
19 Theconstructionof,andcapitalimprovementsto,theAmerenCompanies'electricandnaturalgasutilityinfrastructureinvolvesubstantialrisks.Theserisks includeescalatingcosts,unsatisfactoryperformanceby theprojectswhencompleted,theinabilitytocomplete projectsasscheduled,costdisallowancesbyregulators, andtheinabilitytoearnanadequatereturnoninvested capital,anyofwhichcouldresultinhighercostsandthe closureoffacilities.TheAmerenCompaniesexpecttoincursignificantcapitalexpenditurestocomplywithexistingandknown environmentalregulationsandtomakeinvestmentsintheir electricandnaturalgasutilityinfrastructure.Ameren estimatesitwillincurupto$8.7billion(Ameren Missouri-upto$3.5billion;AmerenIllinois-upto
$3.7billion;other-upto$1.5billion)ofcapital expendituresduringtheperiod2014through2018.These estimatesincludeallowanceforfundsusedduring
construction.InvestmentsinAmeren'srate-regulatedoperationsareexpectedtoberecoverablefromratepayers,butaresubject toprudencyreviewsandregulatorylag.TheabilityoftheAmerenCompaniestocompleteconstructionprojectssuccessfullywithinprojected estimatesiscontingentuponmanyvariablesandsubjectto substantialrisks.Thesevariablesinclude,butarenot limitedto,projectmanagementexpertiseandescalating costsformaterials,labor,andenvironmentalcompliance.
Delaysinobtainingpermits,shortagesinmaterialsand qualifiedlabor,suppliersandcontractorswhodonot performasrequiredundertheircontracts,changesinthe scopeandtimingofprojects,theinabilitytoraisecapitalon reasonableterms,orothereventsbeyondourcontrolthat couldoccurmaymateriallyaffecttheschedule,cost,and performanceoftheseprojects.Withrespecttocapital expendituresforpollutioncontrolequipment,thereisarisk thatenergycenterswillnotbepermittedtocontinueto operateifpollutioncontrolequipmentisnotinstalledby prescribeddeadlinesordoesnotperformasexpected.
Shouldanysuchpollutioncontrolequipmentnotbe installedontimeorperformasexpected,theAmeren Companiescouldbesubjecttoadditionalcostsandtothe lossoftheirinvestmentintheprojectorfacility.Allofthese risksmayadverselyaffecttheAmerenCompanies'results ofoperations,financialposition,andliquidity.AsofDecember31,2013,AmerenMissourihadcapitalized$69millionofcostsincurredtolicense additionalnucleargenerationatitsCallawayenergysite.If effortsareabandonedormanagementconcludesitis probablethecostsincurredwillbedisallowedinrates,a chargetoearningswouldberecognizedintheperiodin whichthatdeterminationwasmade.Wemaynotbeabletoexecuteourelectrictransmissioninvestmentplansandrealizetheexpected returnonthoseinvestments.Ameren,throughATXIandAmerenIllinois,isallocatingsignificantadditionalcapitalresourcestoelectrictransmissioninvestments.Thisallocationofcapital resourcesisbasedonFERC'sregulatoryframeworkanda rateofreturnoncommonequitythatiscurrentlyhigher thanallowedbyourstatecommissions.However,theFERC regulatoryframeworkandrateofreturnissubjectto change.Theregulatoryframeworkmaynotbeasfavorable, ortherateofreturnmaybelower,inthefuture.Currently, theFERC-allowedreturnoncommonequityforMISO transmissionownersis12.38%.In2013,aFERC administrativelawjudgeissuedaninitialdecisionstating thatthecurrent11.14%allowedrateofreturnforNew Englandtransmissionownerswasunjustandunreasonable.
FERChasnotissueditsfinalorderinthiscase,anditis undernodeadlinetodoso.InNovember2013,acomplaint casewasfiledwithFERCseekingareductionintheallowed returnoncommonequity,aswellasalimitonthecommon equityratio,undertheMISOtariff.Thiscomplaintcase couldresultinareductiontoAmerenIllinois'andATXI's allowedreturnoncommonequity.Thatreductioncould alsoresultinarefundfortransmissionservicerevenues earnedafterthefilingofthecomplaintcaseinNovember 2013.AsintheNewEnglandtransmissionowners'case, discussedabove,FERChasnotissuedanorderinthiscase, anditisundernodeadlinetodoso.Asignificantportionofourplannedelectrictransmissioninvestmentsconsistsofthreeseparateprojectstobe constructedbyATXI,whichhavebeenapprovedbyMISOas multi-valueprojects.Thelargestofthethreeprojectsisthe IllinoisRiversproject.Thetotalinvestmentinthesethree projectsisexpectedtobe$1.4billion.Thelastofthese projectsisexpectedtobecompletedin2019.Afailureby Amerentocompleteallofthesethreeprojectsontimeand withinprojectedcostestimatescouldadverselyaffectour resultsofoperations,financialposition,andliquidity.FERChasissuedmultipleorders,whicharesubjecttoongoinglitigation,eliminatingtherightoffirstrefusalfor electricutilitiestoconstructcertainnewtransmission projectswithintheirserviceterritory.Iftheseordersare upheldbythecourts,Amerenmightneedtocompeteto buildcertainfutureelectrictransmissionprojectsinits subsidiaries'serviceterritories.Suchcompetitioncould preventAmerenfrominvestinginfutureelectric transmissionprojectstotheextentdesired.Ourelectricgeneration,transmissionanddistributionfacilitiesaresubjecttooperationalrisksthat couldadverselyaffectourresultsofoperations,financial position,andliquidity.TheAmerenCompanies'financialperformancedependsonthesuccessfuloperationofelectricgeneration, transmission,anddistributionfacilities.Operationofelectric generation,transmission,anddistributionfacilitiesinvolves manyrisks,including:
facilityshutdownsduetooperatorerrororafailureofequipmentorprocesses; longer-than-anticipatedmaintenanceoutages; oldergeneratingequipmentthatmayrequiresignificant expenditurestooperateatpeakefficiency; 20 disruptionsinthedeliveryoffuelorlackofadequateinventories,includingultra-low-sulfurcoalusedfor AmerenMissouri'scompliancewithenvironmental
regulations; lackofwaterrequiredforcoolingplantoperations; labordisputes; inabilitytocomplywithregulatoryorpermit requirements,includingthoserelatingtoenvironmental
laws;disruptionsinthedeliveryofelectricitythatimpactour
customers; handlingandstorageoffossil-fuelcombustion byproducts,suchasCCR; unusualoradverseweatherconditions,including severestorms,droughts,floods,tornadoes,solar flares,andelectromagneticpulses; aworkplaceaccidentthatmightresultininjuryorloss oflife,extensivepropertydamage,orenvironmental
damage;cybersecurityrisk,includinglossofoperationalcontrol ofourenergycentersandourelectrictransmissionand distributionsystemsand/orlossofdata,suchasutility customerdata,accountinformation,andintellectual propertythroughinsideroroutsideractions; catastrophiceventssuchasfires,explosions,pandemic healthevents,orothersimilaroccurrences; limitationsonamountsofinsuranceavailabletocover lossesthatmightariseinconnectionwithoperatingour electricgeneration,transmission,anddistribution facilities;and otherunanticipatedoperationsandmaintenance expensesandliabilities.AmerenMissouri'sownershipandoperationofanuclearenergycentercreatesbusiness,financial,and wastedisposalrisks.AmerenMissouri'sownershipoftheCallawayenergycentersubjectsittotherisksofnucleargeneration,which includethefollowing:
potentialharmfuleffectsontheenvironmentandhumanhealthresultingfromtheoperationofnuclear facilitiesandthestorage,handling,anddisposalof radioactivematerials; thelackofapermanentwastestoragesite; limitationsontheamountsandtypesofinsurance commerciallyavailabletocoverlossesthatmightarise inconnectionwiththeCallawayenergycenterorother UnitedStatesnuclearoperations; uncertaintieswithrespecttocontingenciesand retrospectivepremiumassessmentsrelatingtoclaims attheCallawayenergycenteroranyotherUnited Statesnuclearenergycenter; publicandgovernmentalconcernsabouttheadequacy ofsecurityatnuclearenergycenters; uncertaintieswithrespecttothetechnologicaland financialaspectsofdecommissioningnuclearenergy centersattheendoftheirlicensedlives; limitedavailabilityoffuelsupply;and costlyandextendedoutagesforscheduledor unscheduledmaintenanceandrefueling.TheNRChasbroadauthorityunderfederallawtoimposelicensingandsafetyrequirementsfornuclear energycenters.Intheeventofnoncompliance,theNRChas theauthoritytoimposefinesortoshutdownaunit,or both,dependinguponitsassessmentoftheseverityofthe situation,untilcomplianceisachieved.Revisedsafety requirementspromulgatedfromtimetotimebytheNRC couldnecessitatesubstantialcapitalexpendituresatnuclear energycenterssuchasAmerenMissouri's.Inaddition,ifa seriousnuclearincidentweretooccur,itcouldhavea materialbutindeterminableadverseeffectonAmeren Missouri'sresultsofoperations,financialcondition,and liquidity.Amajorincidentatanuclearenergycenter anywhereintheworldcouldcausetheNRCtolimitor prohibittheoperationorrelicensingofanydomestic nuclearunit.Anincidentatanuclearenergycenter anywhereintheworldalsocouldcausetheNRCtoimpose additionalconditionsorrequirementsontheindustry, whichcouldincreasecostsandresultinadditionalcapital expenditures.Forexample,theearthquakein2011that affectednuclearenergycentersinJapanhasresultedin regulatorychangesintheUnitedStates,andmayresultin futureregulatorychangesthatmayimposeadditionalcosts onallnuclearenergycentersintheUnitedStates.Specific toseismicrisk,theNRCmayrequireCallawaytofurther evaluatetheimpactofanearthquakeonitsoperations, whichcouldleadtotheinstallationofadditionalcapital equipmenttocomplywithrevisedNRCstandards.Ournaturalgasdistributionandstorageactivitiesinvolvenumerousrisksthatmayresultinaccidentsand otheroperatingrisksandcoststhatcouldadverselyaffect ourresultsofoperations,financialposition,andliquidity.Inherentinournaturalgasdistributionandstorageactivitiesareavarietyofhazardsandoperatingrisks,suchas leaks,accidentalexplosions,mechanicalproblemsand cybersecurityrisks,whichcouldcausesubstantialfinancial losses.Inaddition,theseriskscouldresultinseriousinjury, lossofhumanlife,significantdamagetoproperty, environmentalpollution,andimpairmentofouroperations, whichinturncouldleadtosubstantiallossesforus.In accordancewithcustomaryindustrypractice,wemaintain insuranceagainstsome,butnotall,oftheserisksandlosses.
Thelocationofdistributionlinesandstoragefacilitiesnear populatedareas,includingresidentialareas,business centers,industrialsites,andotherpublicgatheringplaces, couldincreasethelevelofdamagesresultingfromthese risks.Theoccurrenceofanyoftheseeventsnotfullycovered byinsurancecouldmateriallyadverselyaffectourresultsof operations,financialposition,andliquidity.Wearesubjecttofederalregulatorycomplianceandproceedings,whichincreaseourriskofregulatory penaltiesandothersanctions.TheEnergyPolicyActof2005increasedFERC'scivilpenaltyauthorityforviolationofFERCstatutes,rules,and orders,includingwithrespecttomandatoryNERCreliability standards.FERCcanimposepenaltiesof$1millionper violationperday.UndertheEnergyPolicyActof2005,the AmerenCompanies,asownersandoperatorsofbulkpower 21 transmissionsystemsand/orelectricenergycenters,aresubjecttomandatoryNERCreliabilitystandards,including cybersecuritystandards.Compliancewiththesemandatory reliabilitystandardsmaysubjecttheAmerenCompaniesto higheroperatingcostsandmayresultinincreasedcapital expenditures.IftheAmerenCompanieswerefoundnotto beincompliancewiththesemandatoryreliabilitystandards orFERCstatutes,rulesandorders,theAmerenCompanies couldincursubstantialmonetarypenaltiesandother sanctions,whichcouldadverselyaffectourresultsof operations,financialposition,andliquidity.FERCalso conductsauditsandreviewsofAmerenMissouri's,Ameren Illinois',andATXI'saccountingrecordstoassessthe accuracyofitsformularate-makingprocessandhasthe abilitytorequireretroactiverefundstocustomersfor previouslybilledamounts,withinterest.EventhoughagreementswerereachedwiththestateofMissouriandFERC,thebreachoftheupperreservoir ofAmerenMissouri'sTaumSaukpumped-storage hydroelectricenergycentercouldcontinuetohavea materialadverseeffectonAmeren'sandAmeren Missouri'sresultsofoperations,liquidity,andfinancial
condition.InDecember2005,therewasabreachoftheupperreservoiratAmerenMissouri'sTaumSaukpumped-storage hydroelectricenergycenter.Thisresultedinsignificant floodinginthelocalarea,whichdamagedastatepark.
AmerenMissourisettledwiththestateofMissouriand FERCallissuesassociatedwiththeDecember2005Taum Saukincident.AmerenMissourihadliabilityinsurancecoveragefortheTaumSaukincident,subjecttocertainlimitsand deductibles.AmerenMissourifiledseparatelawsuits againsttwodifferentliabilityinsuranceprovidersclaiming thattheinsurancecompaniesbreachedtheirdutyto indemnifyAmerenMissouriforthelossesexperiencedfrom theincident.Ameren'sandAmerenMissouri'sresultsof operations,financialposition,andliquiditycouldbe adverselyaffectedifAmerenMissouri'sremainingliability insuranceclaimsof$68millionasofDecember31,2013, arenotpaidbyinsurers.Ourbusinessesaredependentonourabilitytoaccessthecapitalmarketssuccessfully.Wemaynot haveaccesstosufficientcapitalintheamountsandat thetimesneeded.Werelyonshort-termandlong-termdebtassignificantsourcesofliquidityandfundingforcapital requirementsnotsatisfiedbyouroperatingcashflowas wellastorefinancelong-termdebt.Theinabilitytoraise debtorequitycapitalonreasonableterms,oratall,could negativelyaffectourabilitytomaintainandtoexpandour businesses.Eventsbeyondourcontrol,suchasarecession orextremevolatilityinthedebt,equity,orcreditmarkets, maycreateuncertaintythatcouldincreaseourcostof capitalorimpairoreliminateourabilitytoaccessthedebt, equity,orcreditmarkets,includingourabilitytodrawon bankcreditfacilities.AnyadversechangeintheAmerenCompanies'creditratingsmayreduceaccesstocapitaland triggeradditionalcollateralpostingsandprepayments.Such changesmayalsoincreasethecostofborrowingandfuel, powerandnaturalgassupply,amongotherthings,which couldhaveamaterialadverseeffectonourresultsof operations,financialposition,andliquidity.Certainofthe Ameren'ssubsidiaries,suchasATXI,relyonAmerenfor accesstocapital.CircumstancesthatlimitAmeren'saccess tocapitalcouldimpairitsabilitytoprovidethose subsidiarieswithneededcapital.Ameren'sholdingcompanystructurecouldlimititsabilitytopaycommonstockdividendsandtoserviceits debtobligations.Amerenisaholdingcompany;therefore,itsprimaryassetsarethecommonstockofitssubsidiaries.Asaresult, Ameren'sabilitytopaydividendsonitscommonstock dependsontheearningsofitssubsidiariesandtheabilityof itssubsidiariestopaydividendsorotherwisetransferfunds toAmeren.Similarly,Ameren'sabilitytoserviceitsdebt obligationsisalsodependentupontheearningsof operatingsubsidiariesandthedistributionofthoseearnings andotherpayments,includingpaymentsofprincipaland interestunderintercompanyindebtedness.Thepaymentof dividendstoAmerenbyitssubsidiariesinturndependson theirresultsofoperationsandcashflowsandotheritems affectingretainedearnings.Ameren'ssubsidiariesare separateanddistinctlegalentitiesandhavenoobligation, contingentorotherwise,topayanydividendsormakeany otherdistributions(exceptforpaymentsrequiredpursuant tothetermsofintercompanyborrowingarrangementsand cashpaymentsandreceiptsunderthetaxallocation agreement)toAmeren.CertainoftheAmerenCompanies' financingagreementsandarticlesofincorporation,in additiontocertainstatutoryandregulatoryrequirements, mayimposerestrictionsontheabilityofsuchAmeren CompaniestotransferfundstoAmerenintheformofcash dividends,loans,oradvances.Dynegy'soritssubsidiaries'failuretosatisfycertainoftheirindemnityandotherobligationstoAmerenin connectionwiththedivestitureofNewAERtoIPHcould haveamaterialadverseimpactonAmeren'sresultsof operations,financialpositionorliquidity.OnDecember2,2013,AmerencompletedthedivestitureofNewAERtoIPH.Thetransactionagreement betweenAmerenandIPHrequiresAmeren,forupto24 monthsaftertheclosingofthedivestitureofNewAER,to maintainitsfinancialobligationsinexistenceasofthedate oftheclosingunderallcreditsupportarrangementsor obligationswithrespecttoNewAERanditssubsidiaries.
Amerenmustalsoprovideanyadditionalcreditsupportthat maybecontractuallyrequiredpursuanttoanyofthe contractsofNewAER,anditssubsidiariesasoftheclosing.
IPH,NewAERanditssubsidiariesandDynegyhaveagreed toindemnifyAmerenforcertainlossesrelatingtothiscredit support.IPH'sindemnificationobligationsaresecuredby certainAERGandGencoassets.However,theseindemnificationobligationsandsecurityinterestsmightnotcoveralllossesincurredbyAmereninconnectionwiththis 22 creditsupport.Inaddition,DynegyemergedfromitsChapter11bankruptcycaseonOctober1,2012,and,asof December31,2013,Dynegy'screditratingsweresub-investmentgrade.IPH,NewAERanditssubsidiariesalso donothaveinvestmentgradecreditratings.Dynegy,IPH, NewAER,ortheirsubsidiariesmightnotbeabletopay theirindemnityandotherobligationsunderthetransaction agreement,MarketingCompany'snotetoAmeren,or Dynegy'slimitedguaranteetoAmeren,whichcouldhavea materialadverseimpactonAmeren'sresultsofoperations, financialposition,andliquidity.AsofDecember31,2013, thebalanceoftheMarketingCompanynotetoAmerenwas
$18million.AsofDecember31,2013,Amerenprovided
$190millioninguaranteesandlettersofcredittotaling$11 millionrelatingtoitscreditsupportofNewAER.GovernmentchallengestothetaxpositionstakenbytheAmerenCompanies,aswellastaxlawchangesand theinherentdifficultyinquantifyingpotentialtaxeffects ofbusinessdecisionscouldadverselyaffecttheAmeren Companies'resultsofoperationsandcashflows.TheAmerenCompaniesarerequiredtomakejudgmentsinordertoestimatetheirobligationstotaxing authorities.Theseobligationscanincludeincometaxand taxesotherthanincometax,manyofwhichinvolve complexmattersthatultimatelycouldbedeterminedbythe courts.Thesejudgmentsincludereservesforpotential adverseoutcomesfortaxpositionsthatmaybechallenged bytaxauthorities.TheAmerenCompaniesalsoestimate theirabilitytousetaxbenefits,includingthoseintheform ofcarryforwardsandtaxcreditsthatarerecordedas deferredtaxassetsontheirbalancesheets.Adisallowance ofthesetaxbenefitscouldhaveamaterialadverseimpact onourresultsofoperation,financialposition,andliquidity.TheAmerenCompanies'operationsaresubjecttoactsofsabotage,war,terrorism,cyberattacks,andother intentionallydisruptiveacts.Likeotherelectricandnaturalgasutilities,ourenergycenters,fuelstoragefacilities,transmissionanddistribution facilities,andinformationsystemsmaybetargetsof terroristactivities,includingcyberattacks,whichcould disruptourabilitytoproduceordistributesomeportionof ourenergyproducts.Anysuchdisruptioncouldresultina significantdecreaseinrevenuesorsignificantadditional costsforrepair,whichcouldadverselyaffectourresultsof operations,financialposition,andliquidity.AsecuritybreachoftheAmerenCompanies'physicalassetsorinformationsystemscouldaffectthereliabilityof thetransmissionanddistributionsystem,disruptelectric generation,and/orsubjecttheAmerenCompaniesto financialharmassociatedwiththeftorinappropriaterelease ofcertaintypesofinformation,includingsensitivecustomer andemployeedata.Ifasignificantbreachoccurred,the reputationoftheAmerenCompaniescouldbeadversely affected,customerconfidencecouldbediminished,and/or theAmerenCompaniescouldbesubjecttolegalclaims,any ofwhichcouldresultinasignificantdecreaseinrevenuesorsignificantadditionalcostsforrectifyingtheimpactsof suchabreach.TheAmerenCompanies'useofsmart metersthroughouttheirserviceterritoriesmayincreasethe riskofdamagefromanintentionaldisruptionofthesystem bythirdparties.Inaddition,neworupdatedsecurity regulationscouldrequirechangesincurrentmeasures takenbytheAmerenCompaniesandcouldadverselyaffect theirresultsofoperations,cashflows,andfinancial
position.Increasingcostsassociatedwithourdefinedbenefitretirementandpostretirementplans,healthcareplans, andotheremployeebenefitscouldadverselyaffectour financialpositionandliquidity.Weofferdefinedbenefitretirementandpostretirementplansthatcoversubstantiallyallofouremployees.
Assumptionsrelatedtofuturecosts,returnson investments,interestrates,andotheractuarialmattershave asignificantimpactonourcustomers'ratesandourplan fundingrequirements.Amerenexpectstofunditspension plansatalevelequaltothegreaterofthepensionexpense orthelegallyrequiredminimumcontribution.Considering Ameren'sassumptionsatDecember31,2013,its investmentperformancein2013,anditspensionfunding policy,Amerenexpectstomakeannualcontributionsof
$20millionto$100millionineachofthenextfiveyears, withaggregateestimatedcontributionsof$270million.We expectAmerenMissouri'sandAmerenIllinois'portionof thefuturefundingrequirementstobe52%and47%,
respectively.Theseamountsareestimates.Theymay changewithactualinvestmentperformance,changesin interestrates,changesinourassumptions,changesin governmentregulations,andanyvoluntarycontributions.Inadditiontothecostsofourretirementplans,thecostsofprovidinghealthcarebenefitstoouremployees andretireeshaveincreasedinrecentyears.Webelievethat ouremployeebenefitcosts,includingcostsofhealthcare plansforouremployeesandformeremployees,will continuetorise.Theincreasingcostsandfunding requirementsassociatedwithourdefinedbenefitretirement plans,healthcareplans,andotheremployeebenefitscould increaseourfinancingneedsandotherwisematerially adverselyaffectourfinancialpositionandliquidity.Failuretoretainandattractkeyofficersandotherskilledprofessionalandtechnicalemployeescould adverselyaffectouroperations.Ourbusinessesdependuponourabilitytoemployandretainkeyofficersandotherskilledprofessionaland technicalemployees.Asignificantportionofourworkforce isnearingretirement,includingmanyemployeeswith specializedskillssuchasmaintainingandservicingour electricandnaturalgasinfrastructureandoperatingour energycenters.ITEM1B.UNRESOLVEDSTAFFCOMMENTS None.23 ITEM2.PROPERTIESForinformationonourprincipalproperties,seetheenergycentertablebelow.SeealsoLiquidityandCapitalResourcesandRegulatoryMattersinManagement'sDiscussionandAnalysisofFinancialConditionandResultsofOperationsunderPartII,Item7,ofthisreportforadiscussionofplannedadditions,replacementsortransfers.SeealsoNote5-Long-termDebt andEquityFinancings,andNote15-CommitmentsandContingenciesunderPartII,Item8,ofthisreport.ThefollowingtableshowswhatthecapabilityofourAmerenMissourienergycentersisanticipatedtobeatthetimeofourexpected2014peaksummerelectricaldemand:PrimaryFuelSourceEnergyCenter LocationNetKilowattCapability (a)Coal.........................................LabadieFranklinCounty,Missouri2,374,000RushIslandJeffersonCounty,Missouri1,182,000SiouxSt.CharlesCounty,Missouri972,000MeramecSt.LouisCounty,Missouri831,000Totalcoal.....................................
5,359,000 Nuclear.......................................CallawayCallawayCounty,Missouri1,193,000 Hydroelectric
..................................OsageLakeside,Missouri240,000KeokukKeokuk,Iowa140,000Totalhydroelectric
..............................
380,000 Pumped-storage
...............................TaumSaukReynoldsCounty,Missouri440,000Oil(CTs)......................................MeramecSt.LouisCounty,Missouri54,000FairgroundsJeffersonCity,Missouri54,000MexicoMexico,Missouri53,000MoberlyMoberly,Missouri53,000MoreauJeffersonCity,Missouri53,000HowardBendSt.LouisCounty,Missouri39,000Totaloil......................................
306,000Naturalgas(CTs)
...............................
Audrain (b)AudrainCounty,Missouri 600,000 Venice (c)Venice,Illinois 487,000GooseCreekPiattCounty,Illinois 432,000 PinckneyvillePinckneyville,Illinois 316,000RaccoonCreekClayCounty,Illinois 300,000 Kinmundy (c)Kinmundy,Illinois 206,000PenoCreek (b)(c)BowlingGreen,Missouri 188,000 Meramec (c)St.LouisCounty,Missouri 44,000 KirksvilleKirksville,Missouri 13,000Totalnaturalgas
...............................
2,586,000Methanegas(CTs)
..............................MarylandHeightsMarylandHeights,Missouri 8,000TotalAmerenandAmerenMissouri
...............
10,272,000(a)Netkilowattcapabilityisthegeneratingcapacityavailablefordispatchfromtheenergycenterintotheelectrictransmissiongrid.(b)ThereareeconomicdevelopmentleasearrangementsapplicabletotheseCTs.
(c)TheseCTshavethecapabilitytooperateoneitheroilornaturalgas(dualfuel).Thefollowingtablepresentselectricandnaturalgasutility-relatedpropertiesforAmerenMissouriandAmerenIllinoisasofDecember31,2013:
Ameren Missouri Ameren IllinoisCircuitmilesofelectrictransmissionlines (a)...2,9564,548Circuitmilesofelectricdistributionlines
......33,07646,011Circuitmilesofelectricdistributionlines underground.........................23%15%Milesofnaturalgastransmissionanddistributionmains
.....................3,29718,190Undergroundgasstoragefields.............-12Totalworkingcapacityofundergroundgasstoragefieldsinbillioncubicfeet.........-24(a)ATXIowns29milesoftransmissionlinesnotreflectedinthistable.Ourotherpropertiesincludeofficebuildings,warehouses,garages,andrepairshops.Withonlyafewexceptions,wehavefeetitletoallprincipalenergycentersandotherunitsofpropertymaterial totheoperationofourbusinesses,andtotherealproperty onwhichsuchfacilitiesarelocated(subjecttomortgage lienssecuringouroutstandingfirstmortgagebondsandto certainpermittedliensandjudgmentliens).Theexceptions areasfollows:
AportionofAmerenMissouri'sOsageenergycenterreservoir,certainfacilitiesatAmerenMissouri'sSioux energycenter,mostofAmerenMissouri'sPenoCreek andAudrainCTenergycenters,certainsubstations, andmosttransmissionanddistributionlinesand naturalgasmainsaresituatedonlandsoccupiedunder 24 leases,easements,franchises,licenses,orpermits.TheUnitedStatesorthestateofMissourimayownormay haveparamountrightstocertainlandslyinginthebed oftheOsageRiverorlocatedbetweentheinnerand outerharborlinesoftheMississippiRiveronwhich certainofAmerenMissouri'senergycentersandother propertiesarelocated.
TheUnitedStates,thestateofIllinois,thestateofIowa, orthecityofKeokuk,Iowa,mayownormayhave paramountrightswithrespecttocertainlandslyingin thebedoftheMississippiRiveronwhichaportionof AmerenMissouri'sKeokukenergycenterislocated.SubstantiallyallofthepropertiesandplantofAmerenMissouriandAmerenIllinoisaresubjecttothefirstliensof theindenturessecuringtheirmortgagebonds.AmerenMissourihasconveyedmostofitsPenoCreekCTenergycentertothecityofBowlingGreen,Missouri, andleasedtheenergycenterbackfromthecitythrough 2022.Underthetermsofthiscapitallease,Ameren Missouriisresponsibleforalloperationandmaintenance fortheenergycenter.Ownershipoftheenergycenterwill transfertoAmerenMissouriattheexpirationofthelease,at whichtimethepropertyandplantwillbecomesubjectto thelienofanyoutstandingAmerenMissourifirstmortgage bondindenture.AmerenMissourioperatesaCTenergycenterlocatedinAudrainCounty,Missouri.AmerenMissourihasrights andobligationsaslesseeoftheCTenergycenterundera long-termleasewithAudrainCounty.Theleasewillexpire onDecember1,2023.Underthetermsofthiscapitallease, AmerenMissouriisresponsibleforalloperationand maintenancefortheenergycenter.Ownershipoftheenergy centerwilltransfertoAmerenMissouriattheexpirationof thelease,atwhichtimethepropertyandplantwillbecome subjecttothelienofanyoutstandingAmerenMissourifirst mortgagebondindenture.ITEM3.LEGALPROCEEDINGSWeareinvolvedinlegalandadministrativeproceedingsbeforevariouscourtsandagencieswithrespecttomattersthatariseintheordinarycourseofbusiness,someofwhichinvolvesubstantialamountsof money.Webelievethatthefinaldispositionofthese proceedings,exceptasotherwisedisclosedinthisreport, willnothaveamaterialadverseeffectonourresultsof operations,financialposition,orliquidity.Riskoflossis mitigated,insomecases,byinsuranceorcontractualor statutoryindemnification.Webelievethatwehave establishedappropriatereservesforpotentiallosses.
Materiallegalandadministrativeproceedings,whichare discussedinNote2-RateandRegulatoryMattersand Note15-CommitmentandContingenciesunderPartII, Item8,ofthisreportandareincorporatedhereinby reference,includethefollowing:
AmerenIllinois'appealoftheICC'sDecember2013electricrateorder; FERClitigationtodeterminewholesaledistribution revenuesforfiveofAmerenIllinois'wholesale
customers; ComplaintcasesfiledbyNorandaand37residential customerswiththeMoPSCinFebruary2014 requestingareductiontoAmerenMissouri'selectric rates,includingareductiontoitsallowedreturnon equity,andcertainratedesignchanges; Entergy'srehearingrequestofaFERCMay2012order requiringEntergytorefundtoAmerenMissouri additionalchargesAmerenMissouripaidunderan expiredpowerpurchaseagreement; AmerenIllinois'requestforrehearingofFERC'sJuly 2012andJune2013ordersregardingtheinclusionof acquisitionpremiumsinAmerenIllinois'electric transmissionrates; theEPA'sCleanAirAct-relatedlitigationfiledagainst AmerenMissouri; remediationmattersassociatedwithformerMGPand wastedisposalsitesoftheAmerenCompanies; litigationassociatedwiththebreachoftheupper reservoiratAmerenMissouri'sTaumSaukpumped-storagehydroelectricenergycenter; AmerenIllinois'receiptoftaxliabilitynoticesrelatingto prior-periodelectricandnaturalgasmunicipaltaxes;
andasbestos-relatedlitigationassociatedwithAmeren, AmerenMissouri,andAmerenIllinois.
25 ITEM4.MINESAFETYDISCLOSURESNotapplicable.EXECUTIVEOFFICERSOFTHEREGISTRANTS(ITEM401(b)OFREGULATIONS-K):TheexecutiveofficersoftheAmerenCompanies,includingmajorsubsidiaries,arelistedbelow,alongwiththeiragesasofDecember31,2013,allpositionsandofficesheldwiththeAmerenCompaniesasofFebruary14,2014,tenureasofficer,andbusinessbackgroundforatleastthelastfiveyears.SomeexecutiveofficersholdmultiplepositionswithintheAmeren Companies;theirtitlesaregiveninthedescriptionoftheirbusinessexperience.Referencesto"AmerenIllinoiscompanies" belowreferstoCIPS,CILCOandIPcollectivelypriortotheAmerenIllinoisMergerandtoAmerenIllinoisfollowingtheAmeren IllinoisMerger.AMERENCORPORATION:
NameAgePositionsandOfficesHeldThomasR.Voss66ChairmanandChiefExecutiveOfficer,andDirectorVossjoinedAmerenMissouriin1969.In2007,Vosswaselectedchairman,presidentandchiefexecutiveofficerofAmerenMissouri.In2009,VosswaselectedpresidentandchiefexecutiveofficerofAmeren;atthattime,herelinquishedhisother positions.In2010,theAmerenboardofdirectorselectedVosstotheadditionalpositionofchairmanoftheboard.Hehas beenamemberoftheAmerenboardsince2009.VossrelinquishedhispositionaspresidentofAmeren,effectiveFebruary14, 2014,andwillrelinquishhispositionaschiefexecutiveofficerofAmeren,effectiveApril24,2014,andwillretireaschairman andmemberoftheAmerenboard,effectiveJuly1,2014.WarnerL.Baxter52PresidentandDirectorBaxterjoinedAmerenMissouriin1995.BaxterwaselectedtothepositionsofexecutivevicepresidentandchieffinancialofficerofAmeren,AmerenMissouri,CIPS,CILCOandAmerenServicesin2003andofIPin2004.Hewaselectedchairman, president,chiefexecutiveofficerandchieffinancialofficerofAmerenServicesin2007.In2009,Baxterwaselectedchairman, presidentandchiefexecutiveofficerofAmerenMissouri;atthattime,herelinquishedhisotherpositions.Baxterbecame presidentofAmerenandamemberoftheAmerenboard,effectiveFebruary14,2014,andwillsucceedVossaschiefexecutive officerofAmeren,effectiveApril24,2014.TheAmerenboardexpectsthatBaxterwillsucceedVossaschairmanoftheboard.MartinJ.Lyons,Jr.47ExecutiveVicePresidentandChiefFinancialOfficerLyonsjoinedAmerenin2001.In2008,LyonswaselectedseniorvicepresidentandprincipalaccountingofficeroftheAmerenCompanies.In2009,LyonswasalsoelectedchieffinancialofficeroftheAmerenCompanies.In2013,Lyonswaselected executivevicepresidentandchieffinancialofficeroftheAmerenCompanies,andrelinquishedhisdutiesasprincipal accountingofficer.GregoryL.Nelson56SeniorVicePresident,GeneralCounselandSecretaryNelsonjoinedAmerenMissouriin1995.NelsonwaselectedvicepresidentandtaxcounselofAmerenServicesin1999andvicepresidentofAmerenMissouri,CIPS,andCILCOin2003andofIPin2004.In2010,Nelsonwaselectedvicepresident,tax anddeputygeneralcounselofAmerenServices.HeremainedvicepresidentofAmerenMissouriandtheAmerenIllinois companies.In2011,Nelsonwaselectedtothepositionsofseniorvicepresident,generalcounselandsecretaryoftheAmeren
Companies.BruceA.Steinke52SeniorVicePresident,FinanceandChiefAccountingOfficerSteinkejoinedAmerenServicesin2002.In2008,hewaselectedvicepresidentandcontrollerofAmeren,theAmerenIllinoiscompaniesandAmerenServices.In2009,SteinkerelinquishedhispositionsattheAmerenIllinoiscompanies.In2013, Steinkewaselectedseniorvicepresident,financeandchiefaccountingofficeroftheAmerenCompanies.
SUBSIDIARIES:
NameAgePositionsandOfficesHeldMaureenA.Borkowski56Chairman,PresidentandChiefExecutiveOfficer(ATXI)BorkowskijoinedAmerenMissouriin1981.Sheleftthecompanyin2000beforerejoiningAmerenin2005asvicepresident,transmission,ofAmerenServices.In2011,Borkowskiwaselectedchairman,presidentandchiefexecutiveofficerofATXI.In 2011,shewasalsoelectedseniorvicepresident,transmission,ofAmerenServices.DanielF.Cole60Chairman,PresidentandChiefExecutiveOfficer(AmerenServices)ColejoinedAmerenMissouriin1976.HewaselectedseniorvicepresidentofAmerenMissouriandAmerenServicesin1999andofCIPSin2001.HewaselectedseniorvicepresidentofCILCOin2003andofIPin2004.In2009,Colewaselected chairman,presidentandchiefexecutiveofficerofAmerenServicesandremainedseniorvicepresidentofAmerenMissouri andtheAmerenIllinoiscompanies.
26 NameAgePositionsandOfficesHeldFadiM.Diya51SeniorVicePresidentandChiefNuclearOfficer(AmerenMissouri)DiyajoinedAmerenMissouriin2005.In2008,DiyawaselectedvicepresidentofnuclearoperationsatAmerenMissouri.EffectiveJanuary16,2014,DiyawaselectedseniorvicepresidentandchiefnuclearofficerofAmerenMissouri.RichardJ.Mark58Chairman,PresidentandChiefExecutiveOfficer(AmerenIllinois)MarkjoinedAmerenServicesin2002.Hewaselectedseniorvicepresident,customeroperationsofAmerenMissouriin2005.In2012,MarkrelinquishedhispositionatAmerenMissouriandwaselectedchairman,presidentandchiefexecutiveofficerof AmerenIllinois.MichaelL.Moehn44SeniorVicePresident,CustomerOperations(AmerenMissouri)MoehnjoinedAmerenServicesin2000.In2008,hewaselectedseniorvicepresident,corporateplanningandbusinessriskmanagementofAmerenServices.In2012,MoehnrelinquishedhispositionatAmerenServicesandwaselectedseniorvice presidentofcustomeroperationsofAmerenIllinois.Subsequentlyin2012,MoehnrelinquishedhispositionatAmerenIllinois andwaselectedseniorvicepresident,customeroperationsofAmerenMissouri.CharlesD.Naslund61ExecutiveVicePresident(AmerenMissouri)NaslundjoinedAmerenMissouriin1974.In2008,hewaselectedchairman,presidentandchiefexecutiveofficerofAER.In2011,Naslundassumedthepositionofseniorvicepresident,generationandenvironmentalprojectsofAmerenMissouriand relinquishedhispositionsofchairman,presidentandchiefexecutiveofficerofAER.In2013,Naslundrelinquishedhisposition atAmerenMissouriandwaselectedseniorvicepresidentofAmerenServices.Subsequentlyin2013,Naslundwaselected executivevicepresidentofAmerenServicesandAmerenMissouri.Officersaregenerallyelectedorappointedannuallybytherespectiveboardofdirectorsofeachcompany,followingtheelectionofboardmembersattheannualmeetingsofshareholders.Nospecialarrangementorunderstandingexistsbetween anyoftheabove-namedexecutiveofficersandtheAmerenCompaniesnor,toourknowledge,withanyotherpersonor personspursuanttowhichanyexecutiveofficerwasselectedasanofficer.Therearenofamilyrelationshipsamongthe executiveofficersorbetweentheexecutiveofficersandanydirectorsoftheAmerenCompanies.Alloftheabove-named executiveofficershavebeenemployedbyanAmerencompanyformorethanfiveyearsinexecutiveormanagementpositions.
27 PARTIIITEM5.MARKETFORREGISTRANTS'COMMONEQUITY,RELATEDSTOCKHOLDERMATTERS,ANDISSUERPURCHASEOFEQUITYSECURITIESAmeren'scommonstockislistedontheNYSE(tickersymbol:AEE).Amerencommonshareholdersofrecordtotaled57,623onJanuary31,2014.Thefollowingtablepresentsthepriceranges,closingprices,anddividendsdeclaredperAmerencommonshareforeachquarterduring2013and2012.HighLowCloseDividendsDeclared2013QuarterEnded:March31............................................................$35.12$30.64$35.02$0.400June30.............................................................36.7432.3434.440.400September30
........................................................36.7032.6134.840.400December31
.........................................................37.3134.1836.160.4002012QuarterEnded:March31............................................................$33.68$30.89$32.58$0.400June30.............................................................34.0431.1533.540.400September30
........................................................35.3032.2732.670.400December31
.........................................................33.2128.4330.720.400ThereisnotradingmarketforthecommonstockofAmerenMissouriandAmerenIllinois.AmerenholdsalloutstandingcommonstockofAmerenMissouriandAmerenIllinois.ThefollowingtablesetsforththequarterlycommonstockdividendpaymentsmadebyAmerenanditsregistrantsubsidiariesduring2013and2012:(Inmillions) 2013QuarterEnded 2012QuarterEndedRegistrantDecember31September30June30March31December31September30June30March31AmerenMissouri
..........$140$140$90$90$100$100$100$100AmerenIllinois
...........
65151515 57573837 Ameren.................
9797979798979790OnFebruary14,2014,theboardofdirectorsofAmerendeclaredaquarterlydividendonAmeren'scommonstockof40centspershare.ThecommonsharedividendispayableMarch31,2014,toshareholdersofrecordonMarch12,2014.ForadiscussionofrestrictionsontheAmerenCompanies'paymentofdividends,seeLiquidityandCapitalResourcesinManagement'sDiscussionandAnalysisofFinancialConditionandResultsofOperationsunderPartII,Item7,ofthisreport.PurchasesofEquitySecuritiesAmeren,AmerenMissouri,andAmerenIllinoisdidnotpurchaseequitysecuritiesreportableunderItem703ofRegulationS-KduringtheperiodfromOctober1,2013,toDecember31,2013.
28 PerformanceGraphThefollowinggraphshowsAmeren'scumulativetotalshareholderreturnduringthefiveyearsendedDecember31,2013.ThegraphalsoshowsthecumulativetotalreturnsoftheS&P500IndexandtheEdisonElectricInstituteIndex(EEIIndex),whichcomprisesmostinvestor-ownedelectricutilitiesintheUnitedStates.Thecomparisonassumesthat$100wasinvested onDecember31,2008,inAmerencommonstockandineachoftheindicesshown,anditassumesthatallofthedividends werereinvested.
$100 2013 2012 2011 2010 2009 200 8 Ame r e n S&P 500 I nd ex EEI I nd ex$50$150$200
$250December31,200820092010201120122013 Ameren............................................$100.00$89.29$95.41$118.07$115.09$141.91S&P500Index
......................................100.00126.46145.50148.58172.35 228.17EEIIndex...........................................100.00110.71118.50142.19145.16 164.05Amerenmanagementcautionsthatthestockpriceperformanceshowninthegraphaboveshouldnotbeconsideredindicativeofpotentialfuturestockpriceperformance.
29 ITEM6.SELECTEDFINANCIALDATAFortheyearsendedDecember31,(Inmillions,exceptpershareamounts)20132012201120102009 Ameren (a):Operatingrevenues
..........................................$5,838$5,781$6,148$6,188$5,811Operatingincome (b)..........................................
1,1841,1881,0331,175890Incomefromcontinuingoperations
..............................
518522437523369Income(loss)fromdiscontinuedoperations,netoftaxes (c)...........
(223)(1,496)89(372)255Netincome(loss)attributabletoAmerenCorporation
................
289(974)519139612Commonstockdividends
.....................................
388382375368338Continuingoperationsearningspershare-basic
...................
2.112.131.792.151.63Continuingoperationsearningspershare-diluted
.................
2.102.131.792.151.63Commonstockdividendspershare
.............................
1.601.601.5551.541.54AsofDecember31:Totalassets (d)..............................................$21,042$22,230$23,723$23,511$23,701Long-termdebt,excludingcurrentmaturities
......................
5,5045,8025,8536,0296,287TotalAmerenCorporationstockholders'equity
.....................
6,5446,6167,9197,7307,856AmerenMissouri:Operatingrevenues
..........................................$3,541$3,272$3,383$3,197$2,874Operatingincome (b)..........................................
803845609711566Netincomeavailabletocommonstockholder
......................
395416287364259Dividendstoparent
..........................................
460400403235175AsofDecember31:Totalassets
................................................$12,904$13,043$12,757$12,504$12,219Long-termdebt,excludingcurrentmaturities
......................
3,6483,8013,7723,9494,018Totalstockholders'equity
.....................................
3,9934,0544,0374,1534,057AmerenIllinois:Operatingrevenues
..........................................$2,311$2,525$2,787$3,014$2,984Operatingincome
...........................................
415377458498363Netincomeavailabletocommonstockholder
......................
160141193248241Dividendstoparent
..........................................
11018932713398AsofDecember31:Totalassets (e)...............................................$7,454$7,282$7,213$7,406$8,298Long-termdebt,excludingcurrentmaturities
......................
1,8561,5771,6571,6571,847Totalstockholders'equity
.....................................
2,4482,4012,4522,5763,072(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.(b)Includes"TaumSaukregulatorydisallowance"of$89millionrecordedatAmerenandAmerenMissourifortheyearendedDecember31,2011.
(c)SeeNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8,ofthisreportforadditionalinformation.
(d)Includestotalassetsfromdiscontinuedoperationsof$165million,$1,611million,$3,721million,$3,825million,and$4,593millionatDecember31,2013,2012,2011,2010,and2009,respectively.(e)Includestotalassetsfromdiscontinuedoperations(AERG)of$1,117millionatDecember31,2009.ITEM7.MANAGEMENT'SDISCUSSIONANDANALYSISOFFINANCIALCONDITIONANDRESULTSOFOPERATIONSAmeren,headquarteredinSt.Louis,Missouri,isapublicutilityholdingcompanyunderPUHCA2005,administeredbyFERC.Ameren'sprimaryassetsareits equityinterestsinitssubsidiaries.Ameren'ssubsidiaries areseparate,independentlegalentitieswithseparate businesses,assets,andliabilities.DividendsonAmeren's commonstockandthepaymentofotherexpensesby Amerendependondistributionsmadetoitbyits
subsidiaries.BelowisasummarydescriptionofAmerenMissouriandAmerenIllinois.Amoredetaileddescriptioncanbe foundinNote1-SummaryofSignificantAccounting PoliciesunderPartII,Item8,ofthisreport.
AmerenMissourioperatesarate-regulatedelectricgeneration,transmission,anddistributionbusiness,andarate-regulatednaturalgastransmissionand distributionbusinessinMissouri.
AmerenIllinoisoperatesarate-regulatedelectricand naturalgastransmissionanddistributionbusinessin
Illinois.Amerenhasvariousothersubsidiariesresponsibleforactivitiessuchastheprovisionofsharedservices.Ameren alsohasasubsidiary,ATXI,thatoperatesaFERCrate-regulatedelectrictransmissionbusinessandisdeveloping theIllinoisRiversproject.TheIllinoisRiversprojectisa MISO-approvedprojecttobuilda345-kilovoltlinefrom westernIndianaacrossthestateofIllinoistoeastern Missouriatanestimatedcostof$1.1billion.OnMarch14,2013,AmerenenteredintoatransactionagreementtodivestNewAERtoIPH.OnDecember2, 30 2013,AmerencompletedthedivestitureofNewAERtoIPH.OnJanuary31,2014,MedinaValleycompleteditssaleof theElgin,GibsonCity,andGrandTowergas-firedenergy centerstoRocklandCapital.SeeNote16-Divestiture TransactionsandDiscontinuedOperationsunderPartII, Item8,ofthisreportforadditionalinformation.These divestiturespositionAmerentofocusexclusivelyonits rate-regulatedelectric,naturalgas,andtransmission
operations.AsaresultofthetransactionagreementwithIPHandAmeren'splantosellitsElgin,GibsonCity,andGrand Towergas-firedenergycenters,Amerendeterminedthat NewAERandthegas-firedenergycentersqualifiedfor discontinuedoperationspresentationbeginningMarch14, 2013.Inaddition,asofDecember2,2013,Ameren abandonedtheMeredosiaandHutsonvilleenergycenters uponthecompletionofthedivestitureofNewAERtoIPH.
Amerenisprohibitedfromoperatingtheseenergycenters throughDecember31,2020,asaprovisionoftheIllinois PollutionControlBoard'sNovember2013ordergranting IPHavarianceoftheMPS.Asaresult,Amerendetermined thattheMeredosiaandHutsonvilleenergycentersqualified fordiscontinuedoperationspresentationasofDecember2, 2013.TheMeredosiaandHutsonvilleenergycentersceased operationsatDecember31,2011,andtherefore2011was thelastyearthoseenergycentershadamaterialeffecton Ameren'sconsolidatedfinancialstatements.Asaresultof theseevents,AmerenhassegregatedNewAER'sandthe Elgin,GibsonCity,GrandTower,Meredosia,and Hutsonvilleenergycenters'operatingresults,assets,and liabilitiesandpresentedthemseparatelyasdiscontinued operationsforallperiodspresentedinthisreport.Unless otherwisestated,thefollowingsectionsofManagement's DiscussionandAnalysisofFinancialConditionandResults ofOperationsexcludediscontinuedoperationsforall periodspresented.SeeNote16-DivestitureTransactions andDiscontinuedOperationsunderPartII,Item8,ofthis reportforadditionalinformationregardingthat
presentation.ThefinancialstatementsofAmerenarepreparedonaconsolidatedbasisandthereforeincludetheaccountsofits majority-ownedsubsidiaries.AmerenMissouriandAmeren Illinoishavenosubsidiaries,andthereforetheirfinancial statementsarenotpreparedonaconsolidatedbasis.All significantintercompanytransactionshavebeeneliminated.
Alltabulardollaramountsareinmillions,unlessotherwise
indicated.Inadditiontopresentingresultsofoperationsandearningsamountsintotal,wepresentcertaininformationin centspershare.Theseamountsreflectfactorsthatdirectly affectAmeren'searnings.Webelievethatthispershare informationhelpsreaderstounderstandtheimpactofthese factorsonAmeren'searningspershare.Allreferencesin thisreporttoearningspersharearebasedonaverage dilutedcommonsharesoutstanding.
OVERVIEWWithitsexitfromthemerchantgenerationbusinesscomplete,Amerenisfocusedexclusivelyonitsrate-regulatedutilities.Amerenplanstoinvestinandoperateits utilitiesinamannerconsistentwithexistingregulatory frameworks,optimizingoperatingandcapitalspending withintheseframeworks,includingmanagingcostsina disciplinedmanner.Asaresult,Amerenintendstoallocate significantandincreasingamountsofdiscretionarycapital toFERC-regulatedelectrictransmissionserviceandIllinois electricdeliveryserviceprojectsbecausetheseservices operateunderformulaicandconstructiveregulatory
frameworks.AmerenMissouriexpectstofileanelectricserviceratecaseinJuly2014.Theratecaseisexpectedtoincludethe costsassociatedwiththecompletionoftwosignificant capitalprojects,whichprojectsarethereplacementofthe nuclearreactorheadatAmerenMissouri'sCallawayenergy centerandupgradestoprecipitatorsatAmerenMissouri's coal-firedLabadieenergycenter.Bothoftheseprojectsare scheduledforcompletionduringthefourthquarterof2014.Thetimingoftheratecasefilingisdesignedtominimize,totheextentpossibleundertheexistingregulatoryframework, theregulatorylagonthesetwoimportantcapital
investments.AmerenMissouricontinuestoseekaregulatoryframeworkwithreducedregulatorylag,whichprovides timelycashflowsandareasonableopportunitytoearnfair returnsoninvestmentsthatareinthebestlong-term interestofitscustomers.Anenhancedregulatory frameworkwouldincreaseAmerenMissouri'sabilityto reinvestdiscretionarycapitalinagingenergyinfrastructure.AmerenIllinoiscontinuestoparticipateintheIEIMA'sperformance-basedformularatemakingframeworkfor electricdeliveryservice.Underthisframework,theICC issuedanorderinDecember2013whichapprovedanet
$45millionreductioninAmerenIllinois'electricdelivery serviceratesusedfor2014customerbillings,compared with2013.Thereductionwasprimarilycausedbya
$68millionrefundduetocustomersin2014asaresultof the2012revenuerequirementreconciliation,partiallyoffset bya$23millionincreaseinrecoverablecosts.Theserates willaffectAmerenIllinois'cashflowsduring2014,butnot itsoperatingrevenues,whichwillinsteadbedeterminedby theIEIMA's2014revenuerequirementreconciliation.In 2013,Illinoisenactedintolawcertainamendmentstothe IEIMAthatmodifieditsimplementation,whichwere consistentwithAmerenIllinois'viewoftheIEIMA's performance-basedformularateframework.InDecember2013,theICCissuedarateorderthatapprovedanincreaseinrevenuesfornaturalgasdelivery serviceof$32million,basedona2014futuretestyear, withratesthatbecameeffectiveJanuary1,2014.Alsoin 2013,IllinoisenactedlegislationthatencouragesIllinois naturalgasutilitiestoacceleratemodernizationofthe state'snaturalgasinfrastructureandprovidesforadditional 31 ICCoversightofnaturalgasutilityperformance.Thelawprovidesforarateridermechanismtorecovercostsof certainnaturalgasinfrastructureinvestmentsmade betweenratecases.AmerenIllinoisexpectstobegin includinginvestmentsunderthisregulatoryframeworkin
2015.Overthenextfiveyears,Amerenplanstoinvest$2.25billioninFERC-regulatedelectrictransmission projects(ATXI-$1.4billion;AmerenIllinois-
$850million).In2013,ATXIobtainedacertificateofpublic convenienceandnecessityfromtheICCapprovingportions ofitsIllinoisRiverstransmissionproject.InFebruary2014, theICCissuedafinalorderonrehearingapprovingthe remainingsubstationsandroutesoftheproject.TheIllinois Riversprojecthasanestimatedtotalprojectcostof
$1.1billion.Afullrangeofconstructionactivitiesforthe IllinoisRiversprojectisscheduledin2014.TheAmeren Illinoistransmissioninvestmentsarelocalreliability
projects.EarningsAmerenreportednetincomeof$289million,or$1.18perdilutedshare,for2013,comparedwithnetlossof$974million,oralossof$4.01perdilutedshare,in2012.
NetincomeattributabletoAmerenCorporationfrom continuingoperationswas$512million,or$2.10per dilutedshare,for2013,and$516million,or$2.13per dilutedshare,for2012.Ameren'searningsfromcontinuing operationsdecreasedin2013,comparedwith2012,inpart, becauseofreducedearningsatAmerenMissouriduetothe costsoftheCallawayenergycenter's2013scheduled refuelingandmaintenanceoutage,comparedwith2012 whentherewasnorefuelingoutage,areductionin revenuesresultingfromaMoPSCorderrelatedtotheFAC, andtheabsencein2013ofa2012benefitfromaFERC-orderedrefundfromEntergy.Additionally,earningsfrom continuingoperationswereunfavorablyaffectedby decreasedelectricdemandresultingfrom2013summer temperaturesthatwerecoolerthanwarmer-than-normal 2012temperaturespartiallyoffsetbyincreasedelectricand naturalgasdemandresultingfromwintertemperaturesin 2013thatwerecolderthanwintertemperaturesin2012.
Earningsfromcontinuingoperationswerealsounfavorably affectedbytheICC'sDecember2013orderthatresultedin achargetoearningsfortheICC'sdisallowanceofaportion ofdebtpremiumcosts.Netincomefromcontinuing operationsatAmerenwasfavorablyaffectedin2013, comparedwith2012,byrateincreasesforAmerenMissouri electricandAmerenIllinoistransmissionservices,both effectiveinJanuary2013,aswellashigherAmerenIllinois electricdeliveryserviceearnings.Thelatterreflectedthe absence,in2013,ofa2012requiredIEIMAcontributionto theIllinoisScienceandEnergyInnovationTrust,aswellas increasedratebaseandahigherallowedreturnonequity duetohigher30-yearUnitedStatesTreasurybondyields underformularatemaking.During2013,AmerenMissouri andAmerenIllinoiscontinuedtoalignspendingwith regulatoryoutcomes,policies,andeconomicconditions.
LiquidityCashflowsfromoperationsassociatedwithcontinuingoperationsof$1.6billionandavailablecashonhandwere usedtopaydividendstocommonstockholdersof$388 millionandtofundcapitalexpendituresof$1.4billion.At December31,2013,Ameren,onaconsolidatedbasis,had availableliquidity,intheformofcashonhandandamounts availableunderexistingcreditagreements,ofapproximately
$1.7billion.CapitalSpendingIn2013,Amerenmadesignificantinvestmentsinitsutilitiesandexpectsthattrendtocontinueintotheforeseeablefuture.From2014through2018,Ameren's cumulativecapitalspendingisprojectedtorangebetween
$8billionandnearly$9billion.Thespendingincludes approximately$1.4billionforATXI'sinvestmentinits electrictransmissionassets.RESULTSOFOPERATIONSOurresultsofoperationsandfinancialpositionareaffectedbymanyfactors.Weather,economicconditions,andtheactionsofkeycustomerscansignificantlyaffectthe demandforourservices.Ourresultsarealsoaffectedby seasonalfluctuations:winterheatingandsummercooling demands.ThevastmajorityofAmeren'srevenuesare subjecttostateorfederalregulation.Thisregulationhasa materialimpactonthepriceswechargeforourservices.
Weprincipallyusecoal,nuclearfuel,naturalgas,methane gas,andoilforfuelinouroperations.Thepricesforthese commoditiescanfluctuatesignificantlybecauseofthe globaleconomicandpoliticalenvironment,weather,supply anddemand,andmanyotherfactors.Wehavenaturalgas costrecoverymechanismsforourIllinoisandMissouri naturalgasdeliveryservicebusinesses,apurchasedpower costrecoverymechanismforourIllinoiselectricdelivery servicebusiness,andaFACforourMissourielectricutility business.AmerenIllinois'electricdeliveryserviceutility business,pursuanttotheIEIMA,conductsanannual reconciliationoftherevenuerequirementnecessaryto reflecttheactualcostsincurredinagivenyearwiththe revenuerequirementthatwasineffectforthatyear,with recoveriesfromorrefundstocustomersmadeina subsequentyear.IncludedinAmerenIllinois'revenue requirementreconciliationisaformulaforthereturnon equity,whichisequaltotheaverageofthemonthlyyields of30-yearUnitedStatestreasurybondsplus580basis points.Therefore,AmerenIllinois'annualreturnonequity willbedirectlycorrelatedtoyieldsonUnitedStatestreasury bonds.Fluctuationsininterestratesandconditionsinthe capitalandcreditmarketsalsoaffectourcostofborrowing andourpensionandpostretirementbenefitscosts.We employvariousriskmanagementstrategiestoreduceour exposuretocommodityriskandotherrisksinherentinour business.Thereliabilityofourenergycentersand transmissionanddistributionsystemsandthelevelof purchasedpowercosts,operationsandmaintenancecosts, andcapitalinvestmentarekeyfactorsthatweseekto controltooptimizeourresultsofoperations,financial position,andliquidity.
32 EarningsSummaryThefollowingtablepresentsasummaryofAmeren'searningsfortheyearsendedDecember31,2013,2012,and 2011: 2013 2012 2011Netincome(loss)attributabletoAmeren Corporation
......................$289$(974)$519Earnings(loss)percommonshare-diluted..........................
1.18(4.01)2.15NetincomeattributabletoAmerenCorporation-continuingoperations...
512516431Earningspercommonshare-diluted-continuingoperations
..............
2.102.131.792013versus2012NetincomeattributabletoAmerenCorporationfromcontinuingoperationsin2013decreased$4million,or$0.03perdilutedshare,from2012.Netincomeattributable toAmerenCorporationdecreasedintheAmerenMissouri segmentby$21million,partiallyoffsetbyanincreaseinthe AmerenIllinoissegmentof$19million.Comparedwith2012earningspersharefromcontinuingoperations,2013earningspersharefrom continuingoperationswereunfavorablyaffectedby:
thecostoftheCallawayenergycenter'sscheduledrefuelingandmaintenanceoutagein2013.Therewas noCallawayrefuelingandmaintenanceoutagein2012 (10centspershare);
areductioninAmerenMissourirevenuesresulting fromaJuly2013MoPSCorderthatrequiredarefund tocustomersfortheearningsassociatedwithcertain long-termpartialrequirementssalesrecognizedfrom October1,2009,toMay31,2011(7centspershare);
theabsencein2013ofareductioninAmeren Missouri'spurchasedpowerexpenseandanincrease ininterestincome,eachasaresultofaFERC-ordered refundreceivedin2012fromEntergyforapower purchaseagreementthatexpiredin2009(7centsper
share);decreasedelectricdemandresultingfromsummer temperaturesin2013thatwerecoolerthanthe warmer-than-normaltemperaturesin2012,partially offsetbyincreasedelectricandnaturalgasdemand resultingfromwintertemperaturesin2013thatwere colderthanwintertemperaturesin2012(6centsper
share);theICC'sDecember2013ordersdisallowingrecovery fromcustomersofaportionofthepremiumpaidby AmerenIllinoisforatenderofferinAugust2012to repurchaseoutstandingseniorsecurednotes(4cents pershare);and increaseddepreciationprimarilyduetoinfrastructure additionsatAmerenMissouriandAmerenIllinoisand AmerenIllinois'newelectricdepreciationrates(3cents pershare).Comparedwith2012earningspersharefromcontinuingoperations,2013earningspersharefrom continuingoperationswerefavorablyaffectedby:
higherAmerenMissouriutilityratespursuanttoanorderissuedbytheMoPSC,whichbecameeffectivein January2013,partiallyoffsetbyincreasedregulatory assetamortizationasdirectedbytherateorder.This excludesMEEIAimpacts,whicharediscussed separatelybelow(12centspershare);
higherrevenuesassociatedwithAmerenMissouri's MEEIAprogramcostandprojectedlostrevenue recoverymechanism(9centspershare),whichwere partiallyoffsetbylowerrevenuesresultingfrom reduceddemandduetoenergyefficiencyprograms; higherelectrictransmissionratesatAmerenIllinoisand ATXI(8centspershare);and anincreaseinAmerenIllinois'electricdeliveryservice earningsunderformularatemaking,favorablyaffected primarilybyanincreasedratebase,ahigherallowed returnonequity,andlowerrequiredcontributions pursuanttotheIEIMA(8centspershare).Thecentspershareinformationpresentedaboveisbasedondilutedaveragesharesoutstandingin2012.2012versus2011NetincomeattributabletoAmerenCorporationfromcontinuingoperationsin2012increased$85million,or$0.34perdilutedshare,from2011.Netincomeattributable toAmerenCorporationincreasedintheAmerenMissouri segmentby$129million,whichwaspartiallyoffsetbya decreaseintheAmerenIllinoissegmentof$52million.Comparedwith2011earningspersharefromcontinuingoperations,2012earningspersharefrom continuingoperationswerefavorablyaffectedby:
theabsencein2012ofa2011chargefortheMoPSC'sJuly2011disallowanceofcostsofenhancements relatingtotherebuildingofAmerenMissouri'sTaum Saukenergycenterinexcessofamountsrecovered frompropertyinsurance(23centspershare);
higherutilityratesatAmerenMissouriandAmerenIllinois.
AmerenMissouri'selectricratesincreasedpursuanttoan orderissuedbytheMoPSC,whichbecameeffectivein July2011.ThefavorableimpactoftheAmerenMissouri rateincreaseonearningswasreducedbytheincreased regulatoryassetamortizationdirectedbytherateorder.
AmerenIllinois'naturalgasratesincreasedpursuanttoan orderissuedbytheICC,whichbecameeffectiveinmid-January2012(22centspershare);
theabsencein2012ofaCallawayenergycenter refuelingandmaintenanceoutage(11centspershare);
theimpactoffewermajorstormsonoperationsand maintenanceexpenses(9centspershare);
areductioninAmerenMissouri'spurchasedpower expenseandanincreaseininterestincome,eachasa resultofaFERC-orderedrefundreceivedin2012from Entergyforapowerpurchaseagreementthatexpiredin 2009(7centspershare);
33 theabsencein2012ofa2011chargeassociatedwithvoluntaryseparationofferstoeligibleAmerenMissouri andAmerenServicesemployees(7centspershare);
theabsencein2012ofareductioninAmeren Missouri'srevenuesasaresultoftheMoPSC'sApril 2011FACprudencereviewordercoveringMarch1, 2009,toSeptember30,2009,whichcausedAmeren Missouritorecordanobligationtorefundtoitselectric customerstheearningsassociatedwithcertain previouslyrecognizedsales(5centspershare);and areductioninlaborcostsbecauseofstaffreductionsat AmerenMissouri,primarilyresultingfromthe2011 voluntaryseparationplan.Thefavorableeffectat AmerenMissouriwaspartiallyoffsetbyincreasedlabor costsatAmerenIllinoisduetostaffadditionstocomply withtherequirementsoftheIEIMA(2centspershare).Comparedwith2011earningsfromcontinuingoperations,2012earningsfromcontinuingoperationswere unfavorablyaffectedby:
areductioninAmerenIllinois'electricearningsprimarilycausedbyalowerallowedreturnonequity underelectricdeliveryserviceformularatemakingand requireddonationspursuanttotheIEIMA(17centsper
share);anincreaseinAmerenMissouridepreciationand amortizationexpensecausedprimarilybythe installationofscrubbersattheSiouxenergycenter (8centspershare);
reducedelectricandnaturalgasdemandasaresultof warmer2012wintertemperatures(estimatedat7cents pershare);and reducedrate-regulatedretailsalesvolumes,excluding theeffectsofabnormalweather,assalesvolumes declinedduetocontinuedeconomicpressure,energy efficiencymeasures,andcustomerconservation efforts,amongotheritems(2centspershare).Thecentspershareinformationpresentedaboveisbasedondilutedaveragesharesoutstandingin2011.ForadditionaldetailsregardingtheAmerenCompanies'resultsofoperations,includingexplanationsof Margins,OtherOperationsandMaintenanceExpenses, TaumSaukRegulatoryDisallowance,Depreciationand Amortization,TaxesOtherThanIncomeTaxes,Other IncomeandExpenses,InterestCharges,IncomeTaxesand Income(Loss)fromDiscontinuedOperations,NetofTaxes, seethemajorheadingsbelow.
34 BelowisatableofincomestatementcomponentsbysegmentfortheyearsendedDecember31,2013,2012,and2011:
2013 Ameren Missouri Ameren IllinoisOther/IntersegmentEliminationsTotalElectricmargins
...........................................................$2,407$1,081$(3)$3,485Naturalgasmargins
.......................................................83399(2)480Otherrevenues
...........................................................13(4)-Otheroperationsandmaintenance
............................................(915)(693)(9)(1,617)Depreciationandamortization
................................................(454)(243)(9)(706)Taxesotherthanincometaxes
...............................................(319)(132)(7)(458)Otherincomeand(expenses)
................................................471(5)43Interestcharges
...........................................................(210)(143)(45)(398)Income(taxes)benefit
......................................................(242)(110)41(311)Income(loss)fromcontinuingoperations
......................................398163(43)518Lossfromdiscontinuedoperations,netoftaxes
..................................--(223)(223)Netincome(loss)
.........................................................398163(266)295Netincomeattributabletononcontrollinginterests-continuingoperations
.............(3)(3)-(6)Netincome(loss)attributabletoAmerenCorporation
.............................$395$160$(266)$289 2012Electricmargins...........................................................$2,340$1,034$(11)$3,363Naturalgasmargins.......................................................75378(1)452Otherrevenues...........................................................1-(1)-Otheroperationsandmaintenance
............................................(827)(684)-(1,511)Depreciationandamortization
................................................(440)(221)(12)(673)Taxesotherthanincometaxes
...............................................(304)(130)(9)(443)Otherincomeand(expenses)................................................49(10)(6)33Interestcharges
...........................................................(223)(129)(40)(392)Income(taxes)benefit
......................................................(252)(94)39(307)Income(loss)fromcontinuingoperations......................................419144(41)522Lossfromdiscontinuedoperations,netoftaxes..................................--(1,496)(1,496)Netincome(loss).........................................................419144(1,537)(974)Netincomeattributabletononcontrollinginterests-continuingoperations.............(3)(3)-(6)Netlossattributabletononcontrollinginterests-discontinuedoperations.............--66Netincome(loss)attributabletoAmerenCorporation.............................$416$141$(1,531)$(974) 2011Electricmargins...........................................................$2,252$1,087$(10)$3,329Naturalgasmargins.......................................................79354(2)431Otherrevenues...........................................................51(6)-Otheroperationsandmaintenance
............................................(934)(640)12(1,562)TaumSaukregulatorydisallowance
...........................................(89)--(89)Depreciationandamortization
................................................(408)(215)(20)(643)Taxesotherthanincometaxes
...............................................(296)(129)(8)(433)Otherincomeand(expenses)................................................511(7)45Interestcharges
...........................................................(209)(136)(42)(387)Income(taxes)benefit
......................................................(161)(127)34(254)Income(loss)fromcontinuingoperations......................................290196(49)437Incomefromdiscontinuedoperations,netoftaxes................................--8989Netincome..............................................................29019640526Netincomeattributabletononcontrollinginterests-continuingoperations.............(3)(3)-(6)Netincomeattributabletononcontrollinginterests-discontinuedoperations...........--(1)(1)NetincomeattributabletoAmerenCorporation..................................$287$193$39$519 35 MarginsThefollowingtablepresentsthefavorable(unfavorable)variationsbysegmentforelectricandnaturalgasmarginsfromthepreviousyear.Electricmarginsaredefinedaselectricrevenueslessfuelandpurchasedpowercosts.Naturalgasmarginsaredefinedasgasrevenueslessgaspurchasedforresale.ThetablecoverstheyearsendedDecember31,2013,2012,and 2011.Weconsiderelectricandnaturalgasmarginsusefulmeasurestoanalyzethechangeinprofitabilityofourelectricand naturalgasoperationsbetweenperiods.Wehaveincludedtheanalysisbelowasacomplementtothefinancialinformationwe provideinaccordancewithGAAP.However,thesemarginsmaynotbeapresentationdefinedunderGAAP,andmaynotbe comparabletoothercompanies'presentationsormoreusefulthantheGAAPinformationweprovideelsewhereinthisreport.2013versus2012 Ameren Missouri AmerenIllinoisOther (a)AmerenElectricrevenuechange:Effectofweather(estimate)(b)......................................................$(29)$(11)$-$(40)Baserates(estimate).............................................................17857-235Off-systemsalesandtransmissionservicesrevenues(includedinbaserates).................11--11TransmissionservicesrevenueexcludedfromFACuntil2013
.............................(32)--(32)RecoveryofFACunder-recovery (c)..................................................67--67FACprudencereviewcharge
.......................................................(25)--(25)MEEIA(energyefficiency).........................................................72--72Transmissionservices............................................................-251035Grossreceiptstax...............................................................12--12Illinoispass-throughpowersupplycosts.............................................-(325)(2)(327)HurricaneSandyreliefrecovery.....................................................(7)(10)-(17)Baddebt,energyefficiencyprograms,andenvironmentalremediationcostriders..............-(15)-(15)Salesvolume(excludingtheimpactofabnormalweather)................................42-6 Other.........................................................................(4)(1)(2)(7)Totalelectricrevenuechange........................................................$247$(278)$6$(25)Fuelandpurchasedpowerchange:Energycostsincludedinbaserates.................................................$(89)$-$-$(89)RecoveryofFACunder-recovery (c)..................................................(67)--(67)FERC-orderedpowerpurchasesettlement
.............................................(24)--(24)Illinoispass-throughpowersupplycosts.............................................-3252327Totalfuelandpurchasedpowerchange................................................$(180)$325$2$147Netchangeinelectricmargins
......................................................$67$47$8$122Naturalgasmarginschange:Effectofweather(estimate)(b)......................................................$3$14$-$17Baserates(estimate).............................................................-2-2HurricaneSandyreliefrecovery.....................................................-(3)-(3)Grossreceiptstax...............................................................17-8Salesvolume(excludingtheimpactofabnormalweather)andother........................41(1)4Netchangeinnaturalgasmargins
...................................................$8$21$(1)$28 36 2012versus2011 Ameren Missouri AmerenIllinoisOther (a)AmerenElectricrevenuechange:Effectofweather(estimate)(b)......................................................$(19)$(1)$-$(20)Baserates(estimate).............................................................102(55)-47Off-systemsalesrevenues(includedinbaserates)
......................................(131)--(131)RecoveryofFACunder-recovery (c)..................................................(47)--(47)FACprudencereviewcharge.......................................................17--17Transmissionservices............................................................5(1)15Wholesalerevenues
..............................................................(13)(6)-(19)Illinoispass-throughpowersupplycosts.............................................-(154)2(152)Baddebt,energyefficiencyprogramsandenvironmentalremediationcostriders..............-7-7HurricaneSandyreliefrecovery.....................................................710-17Salesvolume(excludingtheimpactofabnormalweather)................................(6)(3)-(9)
Other.........................................................................(5)2(2)(5)Totalelectricrevenuechange........................................................$(90)$(201)$1$(290)Fuelandpurchasedpowerchange:Energycostsincludedinbaserates.................................................$106$-$-$106RecoveryofFACunder-recovery (c)..................................................47--47NetunrealizedMTMgains.........................................................1--1FERC-orderedpowerpurchasesettlement.............................................24--24Transmissionover-recovery.......................................................-(6)-(6)Illinoispass-throughpowersupplycosts.............................................-154(2)152Totalfuelandpurchasedpowerchange................................................$178$148$(2)$324Netchangeinelectricmargins
......................................................$88$(53)$(1)$34Naturalgasmarginschange:Effectofweather(estimate)(b)......................................................$(2)$(10)$-$(12)Baserates(estimate).............................................................220-22Rateredesign..................................................................(5)--(5)Energyefficiencyprogramsandenvironmentalremediationcostriders......................-8-8Baddebtrider..................................................................-(5)-(5)HurricaneSandyreliefrecovery.....................................................-3-3Salesvolume(excludingtheimpactofabnormalweather)andother........................18110Netchangeinnaturalgasmargins
...................................................$(4)$24$1$21(a)Includesamountsforothernonregistrantsubsidiariesandintercompanyeliminations.(b)Representstheestimatedmarginimpactofchangesincoolingandheatingdegree-daysonelectricandnaturalgasdemandcomparedwiththeprioryear;thisisbasedontemperaturereadingsfromtheNationalOceanicandAtmosphericAdministrationweatherstationsatlocalairports inourserviceterritories.(c)RepresentsthechangeinthenetfuelcostsrecoveredundertheFACthroughcustomerrates,withcorrespondingoffsetstofuelexpenseduetotheamortizationofapreviouslyrecordedregulatoryasset.2013versus2012AmerenCorporationAmeren'selectricmarginsincreasedby$122million,or4%,in2013comparedwith2012.Ameren'snaturalgasmarginsincreasedby$28million,or6%,in2013 comparedwith2012.Theseresultswereprimarilydrivenby AmerenMissouriandAmerenIllinoisresults,asdiscussed below.Ameren'selectricmarginsalsoreflecttheresultsof operationsofATXI.ATXI'stransmissionrevenuesincreased by$10millionin2013comparedwith2012,duetotheinclusionofits2013ratebaseinvestmentinitsforward-lookingratecalculation.AmerenMissouriAmerenMissourihasaFACcostrecoverymechanismthatallowsAmerenMissouritorecover,throughcustomerrates,95%ofchangesinnetenergycostsgreaterorlessthantheamountsetinbaserateswithoutatraditionalrate proceeding,subjecttoMoPSCprudencereviews.Net energycostincludesfuel(coal,coaltransportation,natural gasforgeneration,andenricheduranium),certainfuel additives,emissionallowances,purchasedpowercosts, transmissioncostsandrevenues,andMISOcostsand revenues,netofoff-systemsalesrevenues.TheMoPSC's December2012electricorderauthorizedtheinclusionof fueladditivecostsandtransmissionrevenuesintheFAC startingin2013.AmerenMissouriaccrues,asaregulatory asset,netenergycoststhatexceedtheamountsetinbase rates(FACunder-recovery).Netrecoveryofthesecosts undertheFACthroughcustomerratesincreased
$67million,in2013comparedwith2012,witha correspondingoffsettofuelexpensetoreducethe previouslyrecognizedFACregulatoryasset.
37 AmerenMissouri'selectricmarginsincreasedby$67million,or3%,in2013comparedwith2012.ThefollowingitemshadafavorableimpactonAmeren Missouri'selectricmargins:
Higherelectricbaserates,effectiveJanuary2013asaresultoftheDecember2012MoPSCelectricrateorder, whichincreasedrevenuesby$178million,partially offsetbyanincreaseinnetenergycostsof$78million.
Theincreaseinnetenergycostsisthesumofthe changeinenergycostsincludedinbaserates
(-$89million)andthechangeinoff-systemsalesand transmissionservicesrevenues(+$11million)inthe abovetable.Transmissionservicesrevenueswerenot includedintheFACin2012($32million).In2013, transmissionservicesrevenueswereincludedinthe FAC,butwereoffsetbytheincreaseinbaserates.
HigherrevenuesassociatedwiththeMEEIAenergy efficiencyprogramcostandlostrevenuerecovery mechanism($35millionand$37million,respectively),
effectiveJanuary2013,whichincreasedrevenuesbya combined$72million.Thelostrevenuerecovery mechanismhelpscompensateAmerenMissourifor lowersalesfromenergyefficiencyrelatedvolume reductionsincurrentandfutureperiods.SeeNote2-RateandRegulatoryMattersunderPartII,Item8,of thisreportforinformationregardingAmerenMissouri's MEEIAenergyefficiencyprogram.SeeOther OperationsandMaintenanceExpensesinthissection forinformationonarelatedoffsettingincreasein energyefficiencyprogramcosts.
Increasedgrossreceiptstaxes,dueprimarilytothe higherbaserates,whichincreasedrevenuesby
$12million.SeeTaxesOtherThanIncomeTaxesinthis sectionforinformationonarelatedoffsettingincrease togrossreceiptstaxes.
Excludingtheestimatedimpactofabnormalweather, rate-regulatedretailsalesvolumesincreased1%,which increasedrevenuesby$4million.ThefollowingitemshadanunfavorableimpactonAmerenMissouri'selectricmarginsin2013comparedwith
2012:Weatherconditionsdecreasedrevenuesby$29million.Summertemperaturesin2013werecoolerthanthe warmer-than-normaltemperaturesin2012,ascooling degree-daysdecreased22%.However,thiswas partiallyoffsetbywintertemperaturesin2013that werecolderthanthewarmer-than-normaltemperatures in2012,asheatingdegree-daysincreased35%.
AreductioninrevenuesresultingfromaJuly2013 MoPSCorder.AmerenMissourirecordedaFAC prudencereviewchargeforitsestimatedobligationto refundtoitselectriccustomerstheearningsassociated withsalesrecognizedbyAmerenMissourifrom October1,2009,toMay31,2011,whichdecreased revenuesby$25million.SeeNote2-Rateand RegulatoryMattersunderPartII,Item8,ofthisreport forfurtherinformationregardingtheFACprudence reviewcharge.
Theabsencein2013ofareductioninpurchasedpower expenseasaresultofaFERC-orderedrefundreceived in2012fromEntergyforapowerpurchaseagreement thatexpiredin2009,whichdecreasedmarginsby
$24million.
Theabsencein2013ofrecoveryoflaborandbenefit costsforcrewsassistingwithHurricaneSandypower restorationin2012,whichdecreasedmarginsby
$7millionandwasfullyoffsetbyarelateddecreasein operationsandmaintenancecosts,withnooverall impactonnetincome.Ourcostsrelatedtostorm assistancearereimbursedbytheutilitiesreceivingthe
assistance.AmerenMissouri'snaturalgasmarginsincreasedby$8million,or11%,in2013comparedwith2012.The followingitemshadafavorableimpactonAmeren Missouri'snaturalgasmargins:
Excludingtheestimatedimpactofabnormalweather,revenuesincreasedby$4million,drivenby11%higher naturalgastransportationsalesand2%higherretail
sales.Weatherconditionsincreasedrevenuesby$3million.
Wintertemperaturesin2013werecolderthanthe warmer-than-normaltemperaturesin2012,asheating degree-daysincreased35%.
Increasedgrossreceiptstaxesduetohighersalesasa resultofcolderwinterweatherin2013comparedwith 2012,whichincreasedrevenuesby$1million.See TaxesOtherThanIncomeTaxesinthissectionfor informationonarelatedoffsettingincreasetogross receiptstaxes.AmerenIllinoisAmerenIllinoishasacostrecoverymechanismforpowerpurchasedonbehalfofitscustomers.Thesepass-throughpowercostsdonotaffectmargins.AmerenIllinois' revenuesassociatedwithIllinoispass-throughpower supplycostsdecreasedbecauseoflowerpowerpriceson purchasesandreducedvolumescausedbycustomerswho switchedtoalternativeretailelectricsuppliersin2013.This decreaseinrevenueswasoffsetbyacorresponding decreaseinpurchasedpowerexpenseof$325million.Beginningin2012,AmerenIllinoiselectedtoparticipateintheperformance-basedformularatemaking frameworkpursuanttotheIEIMA.TheIEIMAprovidesfor anannualreconciliationofAmerenIllinois'electric distributionrevenuerequirement.Asofeachbalancesheet date,AmerenIllinoisrecordsitsestimateoftheelectric distributionrevenueimpactresultingfromthereconciliation oftherevenuerequirementnecessarytoreflecttheactual recoverablecostsincurredforthatyearwiththerevenue requirementthatwasineffectforthatyear.SeeOperations andMaintenanceExpensesinthissectionforfurther informationregardingtherevenuerequirement.Ifthe currentyear'srevenuerequirementisgreaterthanthe revenuerequirementcustomerrateswerebasedupon,an increasetoelectricoperatingrevenueswithanoffsettoa regulatoryassetisrecordedtoreflecttheexpectedrecovery 38 ofthoseadditionalcostsfromcustomerswithinthenexttwoyears.Ifthecurrentyear'srevenuerequirementisless thantherevenuerequirementcustomerrateswerebased upon,areductiontoelectricoperatingrevenueswithan offsettoaregulatoryliabilityisrecordedtoreflectthe expectedrefundtocustomerswithinthenexttwoyears.
SeeNote2-RateandRegulatoryMattersunderPartII, Item8,ofthisreportforinformationregardingAmeren Illinois'revenuerequirementreconciliationpursuanttothe
IEIMA.AmerenIllinois'electricmarginsincreasedby$47million,or5%,in2013comparedwith2012.The followingitemshadafavorableimpactonAmerenIllinois' electricmargins:
Electricdeliveryserviceformularatemakingadjustmentsresultingfromtheannualreconciliationof therevenuerequirementpursuanttotheIEIMA,which increasedrevenuesby$57million.Theadjustments wereprimarilycausedbyincreasedratebase,ahigher allowedreturnonequity,andhigherrecoverablecosts.
Transmissionrevenuesincreasedby$25milliondueto theimplementationofa2013forward-lookingrate calculationwhichincorporatedtheratebaseincreasein 2013,pursuanttoa2012FERCorder.In2012,rates werebasedonahistoricalperiod.ThefollowingitemshadanunfavorableimpactonAmerenIllinois'electricmarginsin2013comparedwith
2012:Adecreaseinrecoveryofbaddebt,energyefficiencyprogramcosts,andenvironmentalremediationcosts throughrate-adjustmentmechanisms,whichdecreased revenuesby$15million.SeeOtherOperationsand MaintenanceExpensesinthissectionforinformation onarelatedoffsettingdecreaseinbaddebt,energy efficiency,andenvironmentalremediationcosts.
Weatherconditionsdecreasedrevenuesby$11million.
Summertemperaturesin2013werecoolerthanthe warmer-than-normaltemperaturesin2012,ascooling degree-daysdecreased21%.However,thiswas partiallyoffsetbywintertemperaturesin2013that werecolderthanwarmer-than-normaltemperaturesin 2012,asheatingdegree-daysincreased29%.
Theabsencein2013ofrecoveryoflaborandbenefit costsforcrewsassistingwithHurricaneSandypower restorationin2012,whichdecreasedmarginsby
$10millionandwasfullyoffsetbyarelateddecreasein operationsandmaintenancecosts,withnooverall impactonnetincome.Ourcostsrelatedtostorm assistancearereimbursedbytheutilitiesreceivingthe
assistance.AmerenIllinois'naturalgasmarginsincreasedby$21million,or6%,in2013comparedwith2012.The followingitemshadafavorableimpactonAmerenIllinois' naturalgasmargins:
Weatherconditionsincreasedrevenuesby$14million.Wintertemperaturesin2013werecolderthanwarmer-than-normaltemperaturesin2012,asheatingdegree-daysincreased29%.
Increasedgrossreceiptstaxesduetohighersalesasa resultofcolderwinterweatherin2013comparedwith 2012,whichincreasedrevenuesby$7million.See TaxesOtherThanIncomeTaxesinthissectionfor informationonarelatedoffsettingincreasetogross receiptstaxes.
IncreasednaturalgasrateseffectiveinlateJanuary 2012,whichincreasedrevenuesby$2million.AmerenIllinois'naturalgasmarginswereunfavorablyimpactedbytheabsencein2013ofrecoveryoflaborand benefitcostsassociatedwithcrewsassistingwithHurricane Sandypowerrestorationin2012,whichdecreasedmargins by$3millionandwasfullyoffsetbyarelateddecreasein operationsandmaintenancecosts,withnooverallimpact onnetincome.Ourcostsrelatedtostormassistanceare reimbursedbytheutilitiesreceivingtheassistance.2012versus2011AmerenCorporationAmeren'selectricmarginsincreasedby$34million,or1%,in2012comparedwith2011.Ameren'snaturalgas marginsincreasedby$21million,or5%,in2012 comparedwith2011.Theseresultswereprimarilydrivenby AmerenMissouriandAmerenIllinoisresults,asdiscussed
below.AmerenMissouriAmerenMissourihasaFACcostrecoverymechanismthatallowsAmerenMissouritorecover,throughcustomerrates,95%ofchangesinnetenergycostsgreaterorless thantheamountsetinbaserateswithoutatraditionalrate proceeding,subjecttoMoPSCprudencereviews.Netenergy costincludesfuel(coal,coaltransportation,naturalgasfor generation,andenricheduranium),emissionallowances, purchasedpowercosts,transmissioncosts,andMISOcosts andrevenues,netofoff-systemsalesrevenues.The MoPSC'sDecember2012electricorderauthorizedthe inclusionoffueladditivecostsandtransmissionrevenuesin theFACstartingin2013.AmerenMissouriaccrues,asa regulatoryasset,netenergycoststhatexceedtheamountset inbaserates(FACunder-recovery).Netrecoveryofthese costsundertheFACthroughcustomerratesdecreased
$47millionin2012comparedwith2011,witha correspondingoffsettofuelexpensetoreducethepreviously recognizedFACregulatoryasset.AmerenMissouri'selectricmarginsincreasedby$88million,or4%,in2012comparedwith2011.The followingitemshadafavorableimpactonAmeren Missouri'selectricmargins:
Higherelectricbaserates,effectiveJuly2011asaresultofthe2011MoPSCelectricrateorder,which increasedrevenuesby$102million,partiallyoffsetby anincreaseinnetenergycostsof$25million.The increaseinnetenergycostsisthesumofthechangein energycostsincludedinbaserates(+$106million)and thechangeinoff-systemsalesrevenues(-$131million) intheabovetable.
39 ReducedpurchasedpowerexpenseasaresultofaFERC-orderedrefundreceivedfromEntergyin2012 relatingtoapowerpurchaseagreementthatexpiredin 2009,whichincreasedmarginsby$24million.
Theabsencein2012ofareductioninrevenues recordedin2011resultingfromtheMoPSC'sApril 2011FACprudencerevieworder.AmerenMissouri recordedaFACprudencereviewchargeof$17million in2011foritsestimatedobligationtorefundtoits electriccustomerstheearningsassociatedwithsales recognizedduringtheperiodfromMarch1,2009,to September30,2009.
Therecoveryoflaborandbenefitcostsforcrews assistingwithHurricaneSandypowerrestoration, whichincreasedrevenuesby$7millionandwasfully offsetbyarelatedincreaseinoperationsand maintenancecosts,withnooverallimpactonnet
income.Highertransmissionservicesrevenues,primarilydueto twotransmissionprojectsthatwentintoserviceinthe secondhalfof2011andwereincludedintransmission ratesin2012,whichincreasedrevenuesby$5million.
Summertemperaturesin2012werecomparableto 2011,ascoolingdegree-daysincreased1%.However, summertemperaturesinAmerenMissouri'sservice territoryin2012werethewarmestonrecordwith25%
morecoolingdegree-daysthannormal.ThefollowingitemshadanunfavorableimpactonAmerenMissouri'selectricmarginsin2012comparedwith
2011:Weatherconditionsdecreasedrevenuesby$19million.Wintertemperaturesin2012werewarmerthanthe near-normaltemperaturesin2011,asheatingdegree-daysdecreased16%.
TheinclusionofwholesalesalesintheFACasanoffset tofuelcostsbeginningJuly31,2011,whichdecreased revenuesby$13million.
Excludingtheestimatedimpactofabnormalweather, rate-regulatedretailsalesvolumesdeclinedby1%,
partiallyattributabletoenergyefficiencymeasuresand customerconservationefforts,whichdecreased revenuesby$6million.AmerenMissouri'snaturalgasmarginsdecreasedby$4million,or5%,in2012comparedwith2011.The followingitemshadanunfavorableimpactonAmeren Missouri'snaturalgasmargins:
Rateredesign,implementedasaresultofthenaturalgasdeliveryservicerateorderthatbecameeffectivein lateFebruary2011,whichallowedAmerenMissourito recovermoreofitsnon-PGAresidentialrevenues throughafixedmonthlycharge,withtheremaining amountsrecoveredbasedonsalesvolumes,which resultedinrevenuesbeingrecoveredmoreevenly throughouttheyear.Revenuesdecreasedby$5million becausetherateredesignwasnotineffectforthefirst twomonthsof2011.
Weatherconditionsdecreasedrevenuesby$2million.
Wintertemperaturesin2012werewarmerthanthe near-normaltemperaturesin2011,asheatingdegree-daysdecreased16%.AmerenMissouri'snaturalgasmarginswerefavorablyaffectedbyanincreaseinratesthatbecameeffectivein February2011,whichincreasedmarginsby$2million.AmerenIllinoisAmerenIllinois'revenuesassociatedwithIllinoispass-throughpowersupplycostsdecreasedbecauseoflowerpowerpricesonpurchasesandreducedvolumescausedby customerswhoswitchedtoalternativeretailelectric suppliers.Thisdecreaseinrevenueswasoffsetbya correspondingdecreaseinpurchasedpowerexpenseof
$154million.AmerenIllinois'electricmarginsdecreasedby$53million,or5%,in2012comparedwith2011.The followingitemshadanunfavorableimpactonAmeren Illinois'electricmargins:
Electricdeliveryserviceformularatemakingadjustmentresultingfromtheannualreconciliationoftherevenue requirementpursuanttotheIEIMA,whichdecreased revenuesby$55million.Thereductioninrevenuesfor 2012wasprimarilycausedbyalowerallowedreturn onequityastheICC's2010electricrateorderresulted inahigherreturnonequitythanthe2012formularate calculationallowed.The2012revenuerequirement reconciliationincludedtheimpactoftheSeptember 2012ICCorder,whichreducedrevenuesfromOctober throughDecember2012by$8million.
Lowerwholesaledistributionrevenues,primarilydueto lowerdemandandtherecognitionofareservefor revenuessubjecttoarefundasaresultofaNovember 2012FERCadministrativelawjudge'sdecision,which intotaldecreasedrevenuesby$6million.SeeNote2-RateandRegulatoryMattersunderPartII,Item8,of thisreportforfurtherinformation.
AmerenIllinoisaccrues,asaregulatoryassetor liability,transmissioncoststhataregreaterthanorless thantheamountsetintransmissionrates (transmissionunder-recoveryorover-recovery).In 2012,AmerenIllinoisover-recoveredfromcustomers itstransmissioncostsby$6million.Asaresult, AmerenIllinoisreducedapreviouslyrecognized regulatoryassetthathadbeenestablishedforanunder-recoveryofcosts.
Excludingtheestimatedimpactofabnormalweather, rate-regulatedsalesvolumesincreasedby1%,driven largelybythelower-marginindustrialsector.However, marginsdecreased$3millionduetovolumedeclinesin thehigher-marginresidentialandcommercialsectors, partiallyattributabletoenergyefficiencymeasuresand customerconservationefforts.
Weatherconditionsdecreasedrevenuesby$1million.
Wintertemperaturesin2012werewarmerthanthe near-normaltemperaturesin2011asheatingdegree-daysdecreased14%.
40 ThefollowingitemshadafavorableimpactonAmerenIllinois'electricmarginsin2012comparedwith2011:
TherecoveryoflaborandbenefitcostsforcrewsassistingwithHurricaneSandypowerrestoration, whichincreasedrevenuesby$10million,andwasfully offsetbyoperationsandmaintenancecosts,withno overallimpactonnetincome.
Increasedrecoveryofbaddebt,energyefficiency programcosts,andenvironmentalremediationcosts throughrate-adjustmentmechanisms,whichincreased revenuesby$7million.SeeOtherOperationsand MaintenanceExpensesinthissectionforinformation ontherelatedoffsettingincreaseinbaddebt,energy efficiency,andenvironmentalremediationcosts.
Summertemperaturesin2012werecomparableto 2011,ascoolingdegree-daysincreasedby2%.
However,summertemperaturesinAmerenIllinois' serviceterritoryin2012werethewarmestonrecord, with24%morecoolingdegree-daysthannormal.AmerenIllinois'naturalgasmarginsincreasedby$24million,or7%,in2012comparedwith2011.The followingitemshadafavorableimpactonAmerenIllinois' naturalgasmargins:
HighernaturalgasrateseffectiveJanuary2012,whichincreasedrevenuesby$20million.
Increasedrecoveryofenergyefficiencyprogramcosts andenvironmentalremediationcoststhroughcost recoverymechanisms,whichincreasedrevenuesby
$8million.SeeOtherOperationsandMaintenance Expensesinthissectionforinformationonarelated offsettingincreaseinenergyefficiencyand environmentalremediationcosts.
Highersalesvolumeandotherprimarilydueto increasedtransportationsalesfromtwolargeindustrial customersand1%higherresidentialsalesvolumes, excludingtheimpactofabnormalweather,which togetherincreasedmarginsby$8million.
Therecoveryoflaborandbenefitcostsforcrews assistingwithHurricaneSandygasservicerestoration, whichincreasedrevenuesby$3million,andwasfully offsetbyarelatedincreaseinoperationsand maintenancecosts,withnooverallimpactonnet
income.ThefollowingitemshadanunfavorableimpactonAmerenIllinois'naturalgasmarginsin2012comparedwith
2011:Weatherconditionsdecreasedrevenuesby$10million.Wintertemperaturesin2012werewarmerthanthe near-normaltemperaturesin2011,asheatingdegree-daysdecreased14%.
Decreasedrecoveriesthroughthebaddebtrider,which reducedmarginsby$5million.SeeOtherOperations andMaintenanceExpensesinthissectionforadditional informationonarelatedoffsettingdecreaseinbaddebt
expense.OtherOperationsandMaintenanceExpenses2013versus2012AmerenCorporationOtheroperationsandmaintenanceexpensesincreasedby$106millionin2013comparedwith2012primarilydue toincreasedexpensesatAmerenMissouriandAmeren Illinoisasdiscussedbelow.Additionally,therewasa
$9millionincreaseinunallocatedAmeren(parent)other operationsandmaintenanceexpenses.AmerenMissouriOtheroperationsandmaintenanceexpensesincreasedby$88millionin2013.Thefollowingitemsincreasedotheroperationsandmaintenanceexpensesbetweenyears:
A$35millionincreaseinenergyefficiencyprogramcostsduetotherequirementsofMEEIA,whichbecame effectiveinratesinJanuary2013.Thesecostswere offsetbyincreasedelectricrevenuesrecoveredthrough customerbillings,withnooveralleffectonnetincome.
A$31millionincreaseinenergycentermaintenance costs,primarilydueto$38millionincostsforthe scheduled2013Callawayenergycenterrefuelingand maintenanceoutage.Therewasnooutagein2012.The 2013increasewaspartiallyoffsetbya$7million reductionincostsduetofewermajorboileroutagesat coal-firedenergycenters.
A$14millionincreaseinemployeebenefitcosts, primarilyduetohigherpensionexpenseandincreased amortizationofprior-yearpensiondeferralsfromthe pensionandpostretirementbenefitcosttracker,each asaresultofthe2012MoPSCelectricorder.These increasedemployeebenefitcostswereoffsetby increasedelectricrevenuesfromcustomerbillings, withnooveralleffectonnetincome.
A$9millionincreaseinstorm-relatedrepaircosts, primarilyduetomajorstormsin2013.Aportionof thesecosts,$7million,wereoffsetbyelectricrevenues recoveredthroughcustomerbillings.
A$6millionincreaseinbaddebtexpensedueto reducedcustomercollectionsandhighercustomer ratesin2013.Otheroperationsandmaintenanceexpensesdecreasedbetweenyearsbecauseoftheabsencein2013ofa
$6millionchargerecordedin2012foracanceledproject.AmerenIllinoisPursuanttotheprovisionsoftheIEIMA,recoverableelectricdistributioncostsincurredduringtheyearthatarenotrecoveredthroughridersareincludedinAmeren Illinois'revenuerequirementreconciliation,whichresultsin acorrespondingadjustmenttoelectricoperatingrevenues, withnooveralleffectonnetincome.Theserecoverable electricdistributioncostsincludeotheroperationsand maintenanceexpenses,depreciationandamortization,taxes otherthanincometaxes,interestcharges,andincome
taxes.41 Otheroperationsandmaintenanceexpensesincreasedby$9millionin2013.Thefollowingitemsincreasedotheroperationsandmaintenanceexpensesbetweenyears:
An$11millionincreaseinlaborcosts,primarilybecauseofstaffadditionstocomplywiththe requirementsoftheIEIMA.
An$8millionincreaseinnon-storm-relatedelectric distributionmaintenanceexpenditures,primarilyrelated toincreasedvegetationmanagementwork.
A$3millionincreaseinothertransmissionand distributionexpenses,primarilybecauseofexpenses fornaturalgaspipelineintegritycompliance.Thefollowingitemsdecreasedotheroperationsandmaintenanceexpensesbetweenyears:
A$7milliondecreaseinbaddebtexpenseduetoadjustmentsunderthebaddebtrider.Expenses recordedundertheAmerenIllinoisbaddebtrider mechanismwererecoveredthroughcustomerbillings, andsowereoffsetbyincreasedrevenues,withno overalleffectonnetincome.
A$7milliondecreaseinenergyefficiencyand environmentalremediationcosts.Thesecostswere offsetbydecreasedelectricandnaturalgasrevenues fromcustomerbillings,withnooveralleffectonnet
income.2012versus2011AmerenCorporationOtheroperationsandmaintenanceexpensesdecreasedby$51millionin2012comparedwith2011,primarilydue toareductioninAmerenMissouriexpenses,whichwas partiallyoffsetbyanincreaseinAmerenIllinoisexpensesas discussedbelow.Also,therewasa$10millionincreasein stock-basedcompensationexpenseatAmeren(parent).AmerenMissouriOtheroperationsandmaintenanceexpensesdecreasedby$107millionin2012.Thefollowingitemsreducedotheroperationsandmaintenanceexpensesbetweenyears:
A$40milliondecreaseinCallawayenergycenterrefuelingandmaintenancecosts,astherewasno outagein2012.
A$27milliondecreaseinemployeeseverancecosts duetothevoluntaryseparationprogramin2011.
A$25millionreductioninotherlaborcosts,primarily becauseofstaffreductions.
A$19milliondecreaseinstorm-relatedrepaircosts, duetofewermajorstormsin2012.
A$6millionfavorablechangeinunrealizednetMTM gainsbetweenyears,resultingfromchangesinthe marketvalueofinvestmentsusedtosupportAmeren's deferredcompensationplans.
A$6milliondecreaseinbaddebtexpensedueto improvedcustomercollections.
A$4milliondecreaseinnon-storm-relateddistribution maintenanceexpenditures,primarilyduetolowerrepair
spending.Disciplinedcostmanagementeffortstoalignspending withregulatoryoutcomes,policies,andeconomic
conditions.Otheroperationsandmaintenanceexpensesincreasedbetweenyearsbecauseofa$6millionchargein2012fora canceledproject.AmerenIllinoisOtheroperationsandmaintenanceexpensesincreasedby$44millionin2012.Thefollowingitemsincreasedotheroperationsandmaintenanceexpensesbetweenyears:
A$19millionincreaseinenergyefficiencyandenvironmentalremediationcosts.Thesecostswere offsetbyincreasedelectricandnaturalgasrevenues fromcustomerbillings,withnooveralleffectonnet
income.A$16millionincreaseinnon-storm-relatedelectric distributionmaintenanceexpendituresdue,inpart,to mildwinterweatherin2012allowingcrewsto completemoremaintenanceprojects.
A$15millionincreaseinotherlaborcosts,primarily becauseofstaffadditionstocomplywiththe requirementsoftheIEIMA.
An$11millionincreaseintransmissionand distributionexpenses,primarilybecauseofNational ElectricSafetyCoderepairs,whicharenonrecoverable operatingexpendituresunderformularatemaking pursuanttotheIEIMA,andpipelineintegrity
compliance.
A$6millionincreaseinemployeebenefitcosts, primarilyduetoincreasedpensionexpense.Thefollowingitemsreducedotheroperationsandmaintenanceexpensesbetweenyears:
A$14milliondecreaseinstorm-relatedrepaircosts,duetofewermajorstormsin2012.
A$9milliondecreaseinbaddebtexpense,including
$5millionduetoimprovedcustomercollectionsand
$4millionduetoadjustmentsunderthebaddebtrider.
ExpensesrecordedundertheAmerenIllinoisbaddebt ridermechanismwererecoveredthroughcustomer billings,andsowereoffsetbydecreasedrevenues, withnooveralleffectonnetincome.TaumSaukRegulatoryDisallowance2012versus2011AmerenMissouriDuring2011,theMoPSCissuedanelectricrateorderthatdisallowedtherecoveryofallcostsofenhancements, orcoststhatwouldhavebeenincurredabsentthebreach, relatedtotherebuildingoftheTaumSaukenergycenterin excessoftheamountrecoveredfrompropertyinsurance.
Consequently,AmerenandAmerenMissourirecordeda pretaxchargetoearningsof$89million.
42 DepreciationandAmortization2013versus2012AmerenCorporationDepreciationandamortizationexpensesincreasedby$33millionin2013comparedwith2012dueprimarilytoincreasedexpensesatAmerenMissouriandAmerenIllinois asdiscussedbelow.AmerenMissouriDepreciationandamortizationexpensesincreasedby$14millionin2013comparedwith2012,primarilybecauseofincreaseddepreciationexpenseof$6millionrelatedto electricdistributioncapitaladditionsandbecauseof increasedamortizationexpenseof$6millionrelatedtothe December2012MoPSCelectricrateorderresultingin higheramortizationofpre-MEEIAenergyefficiencyprogram costs,whichwerereflectedinelectricrateseffectivein January2013.AmerenIllinoisDepreciationandamortizationexpensesincreasedby$22millionin2013comparedwith2012,primarilybecauseofnewelectricdepreciationrates,whichincreased depreciationexpenseby$17million,asaresultofa reductionintheusefullivesofexistingelectricmetersthat arebeingreplacedwithadvancedmeteringinfrastructure pursuanttotheIEIMA,andbecauseofelectricgeneral capitaladditions,whichincreaseddepreciationexpenseby
$6million.2012versus2011AmerenCorporationDepreciationandamortizationexpensesincreasedby$30millionin2012comparedwith2011duetoincreased expensesatAmerenMissouriandAmerenIllinoisas discussedbelow.Therewasa$5millionreductionin depreciationandamortizationexpensesatAmerenServices duetotheretirementofcomputerequipmentin2011.AmerenMissouriDepreciationandamortizationexpensesincreasedby$32millionin2012comparedwith2011,primarilybecauseofincreaseddepreciationandamortizationexpenses associatedwithnewscrubbersattheSiouxenergycenter (depreciationexpensebeganwiththeeffectivedateofthe July2011electricrateorder)andothercapitaladditions.AmerenIllinoisDepreciationandamortizationexpensesincreasedby$6millionin2012comparedwith2011,primarilybecauseoftransmissionanddistributioninfrastructureadditions.TaxesOtherThanIncomeTaxes2013versus2012AmerenCorporationTaxesotherthanincometaxesincreasedby$15millionin2013comparedwith2012dueprimarilyto increasedexpensesatAmerenMissouriandAmerenIllinois asdiscussedbelow.AmerenMissouriTaxesotherthanincometaxesincreasedby$15million,primarilyduetoanincreaseingrossreceiptstaxesof$13millionasaresultofincreasedsales.These increasedgrossreceiptstaxeswereoffsetbyincreased grossreceiptstaxrevenues,withnooveralleffectonnet income.SeeExciseTaxesinNote1-Summaryof SignificantAccountingPoliciesunderPartII,Item8,ofthis reportforadditionalinformation.AmerenIllinoisTaxesotherthanincometaxesincreasedby$2million,primarilybecauseofanincreaseingrossreceiptstaxesof$7millionasaresultofincreasednaturalgassales, partiallyoffsetbyadecreaseinpropertytaxesof$6million, primarilyasaresultoftwoelectricdistributiontaxcredits receivedin2013.Theincreasedgrossreceiptstaxeswere offsetbyincreasedgrossreceiptstaxrevenues,withno overalleffectonnetincome.SeeExciseTaxesin Note1-SummaryofSignificantAccountingPoliciesunder PartII,Item8,ofthisreportforadditionalinformation.2012versus2011AmerenCorporationTaxesotherthanincometaxesincreasedby$10millionin2012comparedwith2011duetoincreased expensesatAmerenMissouriasdiscussedbelow.AmerenMissouriTaxesotherthanincometaxesincreasedby$8millionin2012,becauseofhigherpropertytaxesresultingfromincreasedstateandlocalassessmentsin2012,the recordingofarefundforprotesteddistributabletaxesin 2011,andthesubsequentrecordinginDecember2012 basedontheMoPSCelectricrateordertoreturnthisrefund tocustomers.Theseunfavorableitemsmorethanoffseta decreaseinpayrolltaxesbetweenyears.AmerenIllinoisTaxesotherthanincometaxeswerecomparablebetweenyears,asareductioningrossreceiptstaxesresultingfromdecreasedsalesoffsethigherpropertytaxes duetoincreasedrates.
43 OtherIncomeandExpenses2013versus2012AmerenCorporationOtherincome,netofexpenses,increasedby$10millionin2013comparedwith2012primarilyduetodecreasedexpensesatAmerenIllinoisasdiscussedbelow.AmerenMissouriOtherincome,netofexpenses,decreasedby$2million,primarilyduetoadecreaseininterestincomeresultingfromtheabsencein2013ofa2012interestpaymentreceived fromEntergyaspartoftheFERC-orderedrefundrelatedtoa powerpurchaseagreementthatexpiredin2009,partially offsetbydecreaseddonations.SeeNote2-Rateand RegulatoryMattersunderPartII,Item8,ofthisreportfor moreinformationabouttheEntergyrefundreceivedin2012.AmerenIllinoisOtherincome,netofexpenses,increasedby$11million,primarilyduetodecreaseddonationsbecauseoftheabsencein2013oftheone-time$7.5million contributiontotheIllinoisScienceandEnergyInnovation TrustpursuanttotheIEIMAinconnectionwithparticipation intheformularatemakingprocessin2012andtoincreased interestincome,primarilyrelatedtotheIEIMA's2013 revenuerequirementreconciliationadjustment.2012versus2011AmerenCorporationOtherincome,netofexpenses,decreasedby$12millionin2012comparedwith2011primarilydueto increasedexpensesatAmerenIllinoisasdiscussedbelow.AmerenMissouriOtherincome,netofexpenses,wascomparablebetweenyears.Increaseddonationsoffsetanincreaseininterestincome,resultingfromtheinterestpaidbyEntergy ontheamountitoverchargedAmerenMissouriundera powerpurchaseagreement.SeeNote2-Rateand RegulatoryMattersunderPartII,Item8,ofthisreportfor furtherinformationonthepowerpurchaseagreementwith
Entergy.AmerenIllinoisAmerenIllinoishadnetotherexpensesof$10millionin2012,comparedwithnetotherincomeof$1millionin2011.Donationsincreasedby$10millionbecauseofaone-time$7.5milliondonationand$1millionannualdonation totheIllinoisScienceandEnergyInnovationTrustanda
$1millionannualdonationforcustomerassistance programspursuanttotheIEIMA,becauseAmerenIllinois participatedintheformularatemakingprocessin2012.InterestCharges2013versus2012AmerenCorporationInterestchargesincreasedby$6millionin2013comparedwith2012becauseincreasesatAmerenIllinois morethanoffsetdecreasesatAmerenMissourias discussedbelow.Additionally,therewasa$5million increaseininterestchargesassociatedwithuncertaintax positionsatAmeren(parent).SeeNote13-IncomeTaxes underPartII,Item8,ofthisreportforinformation regardinguncertaintaxpositions.AmerenMissouriInterestchargesdecreasedby$13million,primarilybecauseofadecreaseininterestchargesassociatedwithuncertaintaxpositionsandthefavorablenetimpactofthe September2012repurchaseof$71millionof6.00%senior securednotes,$121millionof6.70%seniorsecurednotes, and$57millionof5.10%seniorsecurednotesand issuanceof$485millionof3.90%seniorsecurednotes.AmerenIllinoisInterestchargesincreasedby$14million,primarilyduetoachargerecordedin2013asaresultoftheICC'sDecember2013electricrateorder,whichdisallowedthe recoveryfromcustomersofaportionofdebtpremium costsincurredin2012.SeeNote2-RateandRegulatory MattersunderPartII,Item8,ofthisreportforadditional information.Also,interestchargesincreasedduetointerest appliedtotheregulatoryliabilityforthe2012revenue requirementreconciliation.Partiallyoffsettingtheincrease wasthefavorablenetimpactoftheAugust2012 repurchaseof$87millionof9.75%seniorsecurednotes and$194millionof6.25%seniorsecurednotesand issuanceof$400millionof2.70%seniorsecurednotes.2012versus2011AmerenCorporationInterestchargesincreasedby$5millionin2012comparedwith2011primarilybecauseincreasesatAmeren Missourimorethanoffsetadecreaseininterestchargesat AmerenIllinois.Additionally,reducedcreditfacility borrowingsandcommercialpaperissuancesatAmeren resultedina$2millionreductionininterestcharges.AmerenMissouriInterestchargesincreasedby$14millionin2012,primarilybecauseAmerenMissourinolongerrecordedanallowanceforfundsusedduringconstructionforpollution controlequipmentinstalledatitsSiouxenergycenterafter thecostoftheequipmentwasplacedincustomerrates beginningJuly31,2011,andanincreaseininterestcharges associatedwithuncertaintaxpositions.
44 AmerenIllinoisInterestchargesdecreasedby$7millionin2012,primarilybecauseoftheredemptionof$150millionofseniorsecurednotesinJune2011.IncomeTaxesThefollowingtablepresentseffectiveincometaxratesforAmeren'sbusinesssegmentsandfortheAmerenCompaniesfortheyearsendedDecember31,2013,2012, and2011:201320122011 Ameren........................
38%37%37%AmerenMissouri
.................
38%37%36%AmerenIllinois
..................
40%40%39%SeeNote13-IncomeTaxesunderPartII,Item8,ofthisreportforinformationregardingreconciliationsof effectiveincometaxrates.2013versus2012AmerenCorporationAmeren'seffectivetaxratewashigherprimarilybecauseofitemsdetailedatAmerenMissouribelow.AmerenMissouriAmerenMissouri'seffectivetaxratewashigherprimarilybecauseofthedecreasedimpactoftheamortizationofproperty-relatedregulatoryassetsand liabilitiesandanincreaseinnondeductibleexpenses, partiallyoffsetbyanincreaseinreservesforuncertaintax positionsin2012.AmerenIllinoisAmerenIllinois'effectivetaxratewascomparablebetween2013and2012.Theincreasedimpactoftheamortizationofproperty-relatedregulatoryassetsand liabilitieswasoffsetbythedecreasedimpactofinvestment taxcreditamortization.2012versus2011AmerenCorporationAmeren'seffectivetaxratewascomparablebetween2012and2011.TheeffectivetaxrateincreasesforAmeren MissouriandAmerenIllinoisnotedbelowwereoffset primarilybyadecreaserelatedtopermanenttaxbenefits fromcompany-ownedlifeinsurance.Variationsineffective taxratesatAmerenMissouriandAmerenIllinoisbetween 2012and2011arenotedbelow.AmerenMissouriAmerenMissouri'seffectivetaxratewashigherprimarilybecauseofanincreaseinreservesforuncertaintaxpositionsin2012,comparedwithadecreasein2011.
Additionally,theeffectivetaxrateincreasedbecauseofthedecreasedimpactoftheamortizationofproperty-related regulatoryassetsandliabilities,andestimatedtaxcredits onhigherpretaxincomein2012comparedwith2011.AmerenIllinoisAmerenIllinois'effectivetaxratewashigherprimarilybecauseofthefavorableimpactofrecordingtheadjustmenttodeferredtaxassetsduetotheIllinoisstatutoryincome taxrateincreasein2011.Income(Loss)fromDiscontinuedOperations,Netof TaxesSeeNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8,ofthisreport forinformationregardingAmeren'sexitfromtheMerchant Generationbusinessandthediscontinuedoperations disclosuresrelatingtothatbusiness.Ameren'slossfromdiscontinuedoperations,netoftaxes,was$223millionin2013,comparedwithalossfrom discontinuedoperations,netoftaxes,of$1.5billionin 2012.Ameren'sincomefromdiscontinuedoperations,net oftaxes,was$89millionin2011.Ameren'slossesfrom discontinuedoperationswereimpactedbyasset impairmentsin2011and2012,andalossondisposalin 2013asdiscussedbelow.LossonDisposalOnMarch14,2013,AmerenenteredintoatransactionagreementtodivestNewAERtoIPH.OnDecember2,2013,AmerencompletedthedivestitureofNewAERtoIPH.
OnJanuary31,2014,MedinaValleycompleteditssaleof theElgin,GibsonCity,andGrandTowergas-firedenergy centerstoRocklandCapital.UponcompletionofthedivestitureofNewAER,Amerenfinalizeditslossondisposal.Amerenreceivedno cashproceedsfromIPHforthedivestitureofNewAER.
Amerenrecordedapretaxchargetoearningsrelatedtothe NewAERdivestitureof$201millionfortheyearended December31,2013.Theultimatelossondisposalmay differasaresultofthefinalizationoftheworkingcapital adjustmentwithin120daysofclose.In2013,Amerenadjustedtheaccumulateddeferredincometaxesonitsconsolidatedbalancesheettoreflectthe excessoftaxbasisoverfinancialreportingbasisofitsstock investmentinAER.Thischangeinbasisresultedina discontinuedoperationsdeferredtaxexpenseof
$99million,whichwaspartiallyoffsetbytheexpectedtax benefitsof$86millionrelatedtothepretaxlossfrom discontinuedoperationsincludingthelossondisposal, duringtheyearendedDecember31,2013.Thefinaltax basisoftheAERdisposalgroupandtherelatedtaxbenefit resultingfromthetransactionagreementwithIPHare dependentupontheresolutionoftaxmattersunderIRS audit,includingtheadoptionofrecentlyissuedguidance fromtheIRSrelatedtotangiblepropertyrepairsandother matters.Asaresult,taxexpenseandbenefitsultimately realizedindiscontinuedoperationsmaydiffermaterially fromthoserecordedasofDecember31,2013.
45 AstheElgin,GibsonCity,andGrandTowergas-firedenergycenterdisposalgroupcontinuedtomeetthediscontinuedoperationscriteriaatDecember31,2013, Amerenevaluatedwhetheranyimpairmentexistedby comparingthedisposalgroup'scarryingvaluetothe estimatedfairvalueofthedisposalgroup,lesscosttosell.
InDecember2012,asdiscussedbelow,Amerenrecordeda noncashlong-livedassetimpairmentchargetoreducethe carryingvalueofAER'senergycenters,includingtheElgin, GibsonCity,andGrandTowergas-firedenergycenters,to theirestimatedfairvaluesundertheaccountingguidance forheldandusedassets.Amerendidnotrecordany additionalimpairmentrelatingtotheElgin,GibsonCity,and GrandTowerenergycentersfortheyearended December31,2013.OnJanuary31,2014,MedinaValley completedthesaleoftheElgin,GibsonCity,andGrand Towergas-firedenergycenterstoRocklandCapitalfora totalpurchasepriceof$168million,beforeconsiderationof anetworkingcapitaladjustment.Amerenwillnotrecognize againfromthesaletoRocklandCapitalforanyvaluein excessofits$137.5millioncarryingvalueforthisdisposal groupsinceanyexcessamountthatMedinaValleymay receive,netoftaxesandotherexpenses,overthecarrying valuewillultimatelybepaidtoGencopursuanttothe transactionagreementwithIPH.Long-livedAssetImpairmentsAmerenrecordedlong-livedassetimpairmentsunderheldandusedaccountingguidancerelatedtoitsmerchantgenerationbusinesstotaling$2.6billionin2012and
$30millionin2011,beforetaxes.InDecember2012,AmerenconcludedthattheMerchantGenerationsegmentwasnolongeracore componentofitsfuturebusinessstrategy.Asaresultofthe December2012decisionthatAmerenintendedto,andthat itwasprobablethatitwould,exittheMerchantGeneration segmentbeforetheendoftheMerchantGenerationlong-livedassets'previouslyestimatedusefullives,Ameren determinedthatestimatedundiscountedcashflowsduring theperiodinwhichitexpectedtocontinuetoowncertain energycenterswouldbeinsufficienttorecoverthecarrying valueofthoseenergycenters.Accordingly,Ameren recordedanoncashpretaximpairmentchargeof
$1.95billioninDecember2012toreducethecarrying valuesofalloftheMerchantGeneration'scoalandnatural gas-firedenergycenters,excepttheJoppacoal-firedenergy center,totheirestimatedfairvalues.Theestimated undiscountedcashflowsoftheJoppacoal-firedenergy centerexceededitscarryingvalue;therefore,theJoppa coal-firedenergycenterwasunimpaired.KeyassumptionsusedinthedeterminationofestimatedundiscountedcashflowsofAmeren'sMerchant Generationsegment'slong-livedassetstestedfor impairmentincludedforwardpriceprojectionsforenergy andfuelcosts,theexpectedlifeordurationofownershipof thelong-livedassets,environmentalcompliancecostsand strategies,andoperatingcosts.Thosesamecashflow assumptions,alongwithadiscountrateandterminalyearearningsmultiples,wereusedtoestimatethefairvalueof eachenergycenter.Theseassumptionsaresubjecttoa highdegreeofjudgmentandcomplexity.Thefairvalue estimateoftheselong-livedassetswasbasedona combinationoftheincomeapproach,whichconsiders discountedcashflows,andthemarketapproach,which considersmarketmultiplesforsimilarassetswithinthe electricgenerationindustry.Forthefourthquarter2012 long-livedassetimpairmenttest,Amerenusedadiscount rateof10%forthecoal-firedenergycenters,10.5%forthe combinedcycleenergycenter,and11.5%fornaturalgas-firedenergycenters,usedaterminalyearearningsmultiple rangingfrom4.5to6dependingontheenergycenter'sfuel typeandinstalledpollutioncontrolequipment,and estimatedthatthedurationofownershipforeachenergy centerwaslessthanfiveyears,withoneenergycenter's durationofownershipbeinglessthantwoyears.Holdingall otherassumptionsconstant,ifthediscountratehadbeen onepercentagepointhigher,oriftheterminalyearearnings multiplehadbeenonepointlower,orifthedurationof ownershipforeachenergycenterwasoneyearlessthan estimated,thefourthquarter2012impairmentcharge wouldhavebeen$30millionto$110millionhigher.As discussedabove,theJoppacoal-firedenergycenter's estimatedundiscountedcashflowsexceededitscarrying value;however,usingthesameassumptionstoestimate thefairvalueofthatenergycenterwouldresultinan estimatedfairvaluethatapproximateditscarryingvalueas ofDecember31,2012.Inearly2012,theobservablemarketpriceforpowerfordeliveryinthatyearandinfutureyearsintheMidwest sharplydeclinedbelow2011levels,primarilybecauseof decliningnaturalgaspricesandtheimpactofthestayof theCSAPR.Asaresultofthissharpdeclineinthemarket priceofpowerandtherelatedimpactonelectricmargins, Gencodeceleratedtheconstructionoftwoscrubbersatits NewtonenergycenterinFebruary2012.Thesharpdecline inthemarketpriceofpowerinearly2012andtherelated impactonelectricmargins,aswellasthedecelerationof constructionofGenco'sNewtonenergycenterscrubber project,causedAmerentoevaluate,duringthefirstquarter of2012,whetherthecarryingvaluesofMerchant Generationcoal-firedenergycenterswererecoverable.AERG'sDuckCreekenergycenter'scarryingvalueexceededitsestimatedundiscountedfuturecashflows.Asaresult, Amerenrecordedanoncashpretaxassetimpairment chargeof$628milliontoreducethecarryingvalueofthat energycentertoitsestimatedfairvalueduringthefirst quarterof2012.Similartypesofassumptionsdescribed aboveforthefourthquarter2012long-livedasset impairmenttestwereusedinthisfirstquarter2012test.In thisfirstquarter2012test,Amerenusedadiscountrateof 9.5%andestimatedeachenergycenter'susefullifebased onitsphysicallife.Theestimatedusefullifeassumptionin thisfirstquarter2012testwasbasedonenergycenter specificfacts.InDecember2011,GencoceasedoperationsofitsMeredosiaandHutsonvilleenergycenters.Asaresult, Amerenrecordedanoncashpretaxassetimpairment 46 chargeof$26milliontoreducethecarryingvalueoftheMeredosiaandHutsonvilleenergycenterstotheirestimated fairvaluesanda$4millionimpairmentofmaterialsand
supplies.LIQUIDITYANDCAPITALRESOURCESThetariff-basedgrossmarginsofAmeren'srate-regulatedutilityoperatingcompaniesaretheprincipalsourceofcashfromoperatingactivitiesfortheAmeren Companies.Adiversifiedretailcustomermixprimarilyof rate-regulatedresidential,commercial,andindustrial customersprovideareasonablypredictablesourceofcash flowsforAmeren,AmerenMissouriandAmerenIllinois.In additiontousingcashflowsfromoperatingactivities, Ameren,AmerenMissouriandAmerenIllinoisuseavailable cash,creditagreementborrowings,commercialpaper issuances,moneypoolborrowings,orothershort-term borrowingsfromaffiliatestosupportnormaloperationsand othertemporarycapitalrequirements.Ameren,Ameren MissouriandAmerenIllinoismayreducetheircredit agreementorshort-termborrowingswithcashfrom operationsor,attheirdiscretion,withlong-term borrowings,or,inthecaseofAmerenMissouriandAmeren Illinois,withequityinfusionsfromAmeren.Ameren, AmerenMissouriandAmerenIllinoisexpecttoincur significantcapitalexpendituresoverthenextfiveyearsastheymakeinvestmentsintheirelectricandnaturalgas utilityinfrastructuretosupportoverallsystemreliability, environmentalcompliance,andotherimprovements.
Amerenintendstofinancethosecapitalexpendituresand investmentsinitsrate-regulatedbusinesseswithablendof equityanddebtsothatitmaintainsacapitalstructureina rangearound50%equity,assumingconstructiveregulatory environments.Ameren,AmerenMissouriandAmeren Illinoisplantoimplementtheirlong-termfinancingplans fordebt,equity,orequity-linkedsecuritiestofinancetheir operationsappropriately,tofundscheduleddebtmaturities, andtomaintainfinancialstrengthandflexibility.Theuseofoperatingcashflowsandshort-termborrowingstofundcapitalexpendituresandotherlong-terminvestmentsmayperiodicallyresultinaworking capitaldeficit,asdefinedbycurrentliabilitiesexceeding currentassets,aswasthecaseatDecember31,2013.The workingcapitaldeficitasofDecember31,2013,was primarilytheresultofcurrentmaturitiesoflong-termdebt.
Amereniscurrentlyevaluatingrefinancingoptionsforthese currentmaturitiesincluding,inpart,throughtheissuance oflong-termnotes.Inaddition,Amerenhad$368millionof commercialpaperissuancesoutstandingasof December31,2013.Withthe2012CreditAgreements, Amerenhasaccessto$2.1billionofcreditcapacityof which$1.7billionwasavailableatDecember31,2013.Thefollowingtablepresentsnetcashprovidedby(usedin)operating,investingandfinancingactivitiesfortheyearsendedDecember31,2013,2012,and2011:NetCashProvidedByOperatingActivitiesNetCash(UsedIn)InvestingActivitiesNetCashProvidedby(UsedIn)FinancingActivities201320122011201320122011201320122011 Ameren (a)-continuingoperations
..........$1,636$1,404$1,499$(1,440)$(1,153)$(949)$(149)$(426)$(1,020)
Ameren (a)-discontinuedoperations
........57286379 (283)(157)(99)--(100)AmerenMissouri
.......................
1,1431,0041,056 (687)(703)(627)
(603)(354)(430)AmerenIllinois
.........................
651519504 (695)(437)(296) 45(103)(509)(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.CashFlowsfromOperatingActivities2013versus2012AmerenCorporationAmeren'scashfromoperatingactivitiesassociatedwithcontinuingoperationsincreasedin2013,compared with2012.Thefollowingitemscontributedtotheincrease inAmeren'scashfromoperatingactivitiesassociatedwith continuingoperationsduring2013,comparedwith2012:
Theabsencein2013of$138millioninpremiumspaidtodebtholdersin2012inconnectionwiththe repurchaseofthetenderedprincipalofmultipleseries ofAmerenMissouriandAmerenIllinoisseniorsecured
notes.A$115millionincreaseinthecashflowsassociated withAmerenMissouri'sunder-recoveredFACcosts.
Recoveriesoutpaceddeferralsin2013by$41million, whiledeferralsandrefundsoutpacedrecoveriesin 2012by$74million.
Electricandnaturalgasmargins,asdiscussedin ResultsofOperations,increasedby$109million, excludingimpactsofthenoncashIEIMArevenue requirementreconciliationadjustment,theunder-recoveryofMEEIAlostrevenuesandtheMoPSC'sJuly 2013order,whichresultedinaFACprudencecharge.
SeeNote2-RateandRegulatoryMattersunder PartII,Item8,ofthisreportforfurtherinformation.
A$94millionincreaseduetochangesinAmeren Missouricoalinventorylevels.In2013,coalinventory levelsdecreasedby$62millionbecauseofdelivery disruptionsduetoflooding,whilein2012,coal inventorylevelsincreasedby$32millionprimarily becauseadditionaltonswereheldininventorywhen generationlevelswerelowerthanexpecteddueto marketconditions.
Theabsencein2013of$25millioninseverance paymentsmadein2012asaresultofthevoluntary separationoffersextendedtoAmerenMissouri employeesinthefourthquarterof2011.
47 A$22milliondecreaseininterestpayments,primarilydueto2012refinancingactivityandtimingofpayments onAmerenMissouriandAmerenIllinoisseniorsecured
notes.Thereceiptof$16millionin2013forstormrestoration assistanceprovidedtononaffiliatedutilitiesin2012at AmerenIllinois.
Aone-time$7.5millioncontribution,in2012,by AmerenIllinoistotheIllinoisScienceandEnergy InnovationTrust,asrequiredbytheIEIMA,whichwas notrepeatedin2013.ThefollowingitemspartiallyoffsettheincreaseinAmeren'scashfromoperatingactivitiesassociatedwith continuingoperationsduring2013,comparedwith2012:
A$106millionincreaseinincometaxpaymentsforcontinuingoperations.Asdiscussedbelow,incometax paymentsatAmerenMissouriincreased$89million whileincometaxrefundsatAmerenIllinoisincreased
$1million.ConsideringbothAmeren'scontinuingand discontinuedoperations,Amerenmadeimmaterial federalincometaxpaymentsin2013.
A$91millionincreaseinaccountsreceivablebalances toreflectthetimingofrevenuesearned,butnotyet collected,fromcustomers.
A$27millionincreaseinpaymentsforthe2013 schedulednuclearrefuelingandmaintenanceoutageat theCallawayenergycenter.Therewasnorefuelingand maintenanceoutagein2012.
Theabsencein2013ofcourtregistryreceiptsandpayments.In2012,AmerenMissourireceived
$19millionfromtheCircuitCourtofStoddardCounty's registryandtheCircuitCourtofColeCounty'sregistry, netofpaymentsintothoseregistries,asaresultofa MissouriCourtofAppealsrulingupholdingthe MoPSC'sJanuary2009electricrateorder.
A$13millionincreaseinpropertytaxpayments, primarilyatAmerenMissouri,causedbythetimingof
payments.A$12millionincreaseinmajorstormrestorationcosts.
An$11millionincreaseinlaborcostsprimarilyrelated toincreasedstaffinglevelsassociatedwithIEIMAat AmerenIllinois.
An$8millionincreaseinpensionandpostretirement benefitplancontributionsprimarilycausedbyan increaseinfundingrequirementsin2013compared with2012,partiallyoffsetbyanadditional postretirementcontributionin2012atAmerenIllinois.
InadditiontotheAmerenMissouriandAmerenIllinois amountsdiscussedbelow,Ameren'snonregistrant subsidiariesincreasedtheircontributionstothe pensionandpostretirementbenefitplansby
$19million.Ameren'scashfromoperatingactivitiesassociatedwithdiscontinuedoperationsdecreasedin2013,compared with2012,primarilybecauseofa$277milliondecreasein electricmargins,excludingimpactsofnoncashunrealized MTMactivity.Thedecreasewaspartiallyoffsetbya
$99millionincreaseinincometaxrefundsin2013duetoa reductioninpretaxbookincomepartiallyoffsetbya reductioninaccelerateddepreciationdeductions.Ameren'sdiscontinuedoperationsentitiesreceivedtheseincometax refundsthroughthetaxallocationagreementwithAmeren's continuingoperationsentities.AmerenMissouriAmerenMissouri'scashfromoperatingactivitiesincreasedin2013,comparedwith2012.ThefollowingitemscontributedtotheincreaseinAmerenMissouri'scash fromoperatingactivitiesduring2013,comparedwith2012:
A$115millionincreaseinthecashflowsassociatedwithunder-recoveredFACcosts.Recoveriesexceeded deferralsin2013by$41million,whiledeferralsand refundsexceededrecoveriesin2012by$74million.
A$94millionincreaseduetochangesincoalinventory levels.In2013,coalinventorylevelsdecreasedby
$62millionbecauseofdeliverydisruptionsdueto flooding,whilein2012,coalinventorylevelsincreased by$32millionprimarilybecauseadditionaltonswere heldininventorywhengenerationlevelswerelower thanexpectedduetomarketconditions.
Electricandnaturalgasmargins,asdiscussedin ResultsofOperations,increasedby$91million, excludingtheimpactofthenoncashrevenues associatedwiththeunder-recoveryofMEEIAlost revenuesandthechargerecordedin2013associated withtheFACprudencereview.
Theabsencein2013of$62millioninpremiumspaid todebtholdersin2012inconnectionwiththe repurchaseofthetenderedprincipalofmultipleseries ofseniorsecurednotes.
Theabsencein2013of$25millioninseverance paymentsmadein2012asaresultofthevoluntary separationoffersextendedtoemployeesinthefourth quarterof2011.
An$8milliondecreaseininterestpayments,primarily dueto2012refinancingactivityandtimingofpayments onseniorsecurednotes.ThefollowingitemspartiallyoffsettheincreaseinAmerenMissouri'scashfromoperatingactivitiesduring 2013,comparedwith2012:
Incometaxpaymentstotaled$86millionin2013resultingprimarilyfromareductioninaccelerated depreciationdeductionswhileincometaxrefundswere
$3millionin2012.
A$60millionincreaseinaccountsreceivablebalances toreflectthetimingofrevenuesearned,butnotyet collected,fromcustomers.
A$27millionincreaseinpaymentsforscheduled nuclearrefuelingandmaintenanceoutagesatthe Callawayenergycenter.Therewasnorefuelingand maintenanceoutagein2012.
A$20millionincreaseinpropertytaxpaymentscaused bythetimingofpayments.
Theabsencein2013ofcourtregistryreceiptsand payments.In2012,AmerenMissourireceived
$19millionfromtheCircuitCourtofStoddardCounty's registryandtheCircuitCourtofColeCounty'sregistry, netofpaymentsintothoseregistries,asaresultofa 48 MissouriCourtofAppealsrulingupholdingtheMoPSC'sJanuary2009electricrateorder.
A$9millionincreaseinpensionandpostretirement benefitplancontributionsprimarilycausedbyan increaseinfundingrequirementsin2013compared with2012.An$8millionincreaseinmajorstormrestorationcosts.AmerenIllinoisAmerenIllinois'cashfromoperatingactivitiesincreasedin2013,comparedwith2012.Thefollowing itemscontributedtotheincreaseinAmerenIllinois'cash fromoperatingactivitiesduring2013,comparedwith2012:
Theabsencein2013of$76millioninpremiumspaidtodebtholdersin2012inconnectionwiththe repurchaseofthetenderedprincipalofmultipleseries ofseniorsecurednotes.
A$20milliondecreaseinpensionandpostretirement benefitplancontributionsprimarilycausedbyan additionalpostretirementcontributionin2012.
Thereceiptof$16millionin2013forstormrestoration assistanceprovidedtononaffiliatedutilitiesin2012.
A$13milliondecreaseininterestpayments,primarily dueto2012refinancingactivityandtimingofpayments onseniorsecurednotes.
Electricandnaturalgasmargins,asdiscussedin ResultsofOperations,increasedby$11million, excludingtheimpactfromthenoncashIEIMArevenue requirementreconciliationadjustment.
Aone-time$7.5millioncontribution,in2012,tothe IllinoisScienceandEnergyInnovationTrustasrequired bytheIEIMA.
A$7milliondecreaseinpropertytaxpaymentsdueto twoelectricitydistributiontaxcreditrefundsreceivedin
2013.ThefollowingitemspartiallyoffsettheincreaseinAmerenIllinois'cashfromoperatingactivitiesduring2013, comparedwith2012:
A$29millionincreaseinaccountsreceivablebalancestoreflectthetimingofrevenuesearnedbutnotyet collectedfromcustomers.
An$11millionincreaseinlaborcostsprimarilyrelated toincreasedstaffinglevelsassociatedwithIEIMA.2012versus2011AmerenCorporationAmeren'scashfromoperatingactivitiesassociatedwithcontinuingoperationsdecreasedin2012,compared with2011.Thefollowingitemscontributedtothedecrease incashfromoperatingactivitiesassociatedwithcontinuing operationsduring2012,comparedwith2011:
CashflowsassociatedwithAmerenMissouri'sunder-recoveredFACcosts,whichdecreasedby$161million.
Recoveriesexceededdeferralsin2011by$87million, whiledeferralsexceededrecoveriesin2012by
$74million.
Thepremiumspaidtodebtholdersinconnectionwith therepurchaseofthetenderedprincipalofmultiple seriesofAmerenMissouriandAmerenIllinoissenior securednotes,whichpremiumstotaled$138million.
SeeNote5-Long-termDebtandEquityFinancings underPartII,Item8,ofthisreportforfurther
information.
An$82milliondecreaseincashcollectionsfrom customerreceivables,excludingtheimpactsofthe receiptoffundsfrom,anddepositsinto,court registriesdiscussedseparatelybelow,primarilycaused bymilderweatherinDecember2011,comparedwith December2010.
Incometaxpaymentsrelatedtocontinuingoperations of$10millionin2012,comparedwithincometax refundsof$47millionin2011.The2011refund resultedprimarilyfromanIRSsettlement,whilethe 2012paymentwascausedbythepurchaseofstatetax credits.Amerendidnotmakematerialfederalincome taxpaymentsineitherperiodbecauseofaccelerated deductionsauthorizedbyeconomicstimuluslegislation andotherdeductions.
A$40millionincreaseincoalinventoryatAmeren Missouri,primarilybecauseadditionaltonswereheldin inventorywhengenerationlevelswerelowerthan expectedduetomarketconditions,theabsencein2012 offloodingthatimpededcoaldeliveriesin2011, increasedcoalprices,andmilderweatherconditionsin early2012.
A$22millionincreaseinenergyefficiency expenditures,primarilyforAmerenIllinoiscustomer programs,whicharerecoveredthroughcustomer billingsovertime.ThefollowingitemspartiallyoffsetthedecreaseinAmeren'scashfromoperatingactivitiesassociatedwith continuingoperationsduring2012,comparedwith2011:
Electricandnaturalgasmargins,asdiscussedinResultsofOperations,whichincreasedby$111million, excludingAmerenIllinois'noncashIEIMArevenue requirementreconciliationadjustment.
AmerenMissouri'sreceiptof$37millionfromthe StoddardCountyCircuitCourt'sregistryandtheCole CountyCircuitCourt'sregistryastheMoPSC's2009 and2010electricrateorderswereupheldonappeals.
Additionally,$24millionfewerAmerenMissouri receivableswerepaidintothecourtregistriesin2012 inconnectionwiththeelectricrateorderappeals.
A$52milliondecreaseinpensionandpostretirement plancontributions.In2011,AmerenIllinoiscontributed toAmeren'spostretirementbenefitplantrustan incremental$100millioninexcessofAmerenIllinois' annualpostretirementnetperiodiccostforregulatory
purposes.A$50milliondecreaseinthecostofnaturalgasheldin storagebecauseoflowerprices.
A$35milliondecreaseinmajorstormrestoration
costs.A$26milliondecreaseintaxesotherthanincometax payments,primarilyrelatedtoAmerenMissouri, 49 causedbythetimingofpropertytaxpaymentsateachyearend,partiallyoffsetbyhigherassessedproperty taxvalues.
A$21millionreductioninpaymentsforscheduled nuclearrefuelingandmaintenanceoutagesatthe Callawayenergycenter,causedbytheabsenceofa refuelingoutagein2012.
A$21millionincreaseinnaturalgascommodityover-recoveredcostsunderthePGAs,primarilyrelatedto AmerenIllinois.
A$20milliondecreaseinpaymentsrelatedtotheMISO liabilitydue,inpart,tofewerpaymentsrequiredfor December2011purchasescomparedtothepayments requiredforDecember2010purchases.
Anet$5milliondecreaseincollateralpostedwith counterpartiesdue,inpart,tochangesinthemarket pricesofpowerandnaturalgasandincontracted commodityvolumes.Cashfromoperatingactivitiesassociatedwithdiscontinuedoperationsdecreasedin2012,comparedwith 2011,primarilybecauseofa$140milliondecreasein electricmargins,excludingimpactsofnoncashunrealized MTMactivity,partiallyoffsetbyan$18milliondecreasein coalinventory,primarilyduetocontinuedfocuson inventoryreductions,partiallyoffsetbyincreasedcoal
prices.AmerenMissouriAmerenMissouri'scashfromoperatingactivitiesdecreasedin2012comparedwith2011.Thefollowingitemscontributedtothedecreaseincashfromoperating activitiesduring2012,comparedwith2011:
CashflowsassociatedwithAmerenMissouri'sunder-recoveredFACcosts,whichdecreasedby$161million.
Recoveriesexceededdeferralsin2011by$87million, whiledeferralsexceededrecoveriesin2012by
$74million.
Thepremiumspaidtodebtholdersfortherepurchase ofthetenderedprincipalofmultipleseriesofsenior securednotes,whichpremiumstotaled$62million.
A$40millionincreaseincoalinventoryprimarily becauseadditionaltonswereheldininventorywhen generationlevelswerelowerthanexpecteddueto marketconditions,theabsencein2012offloodingthat impededcoaldeliveriesin2011,increasedcoalprices, andmilderweatherconditionsinearly2012.
A$25milliondecreaseincashcollectionsfrom customerreceivables,excludingthereceiptoffunds from,anddepositsinto,courtregistriesdiscussed separatelybelow,primarilycausedbymilderweatherin December2011,comparedwithDecember2010.
Anet$6millionincreaseincollateralpostedwith counterpartiesdue,inpart,tochangesinthemarket priceofpowerandgasandincontractedcommodity
volumes.ThefollowingitemspartiallyoffsetthedecreaseinAmerenMissouri'scashfromoperatingactivitiesduring 2012,comparedwith2011:
Electricandnaturalgasmargins,asdiscussedinResultsofOperations,whichincreasedby$83million.
Receiptof$37millionfromtheStoddardCountyCircuit Court'sregistryandtheColeCountyCircuitCourt's registryastheMoPSC's2009and2010electricrate orderswereupheldonappeals.Additionally,
$24millionfewerAmerenMissourireceivableswere paidintothecourtregistriesin2012inconnectionwith theelectricrateorderappeals.
A$28milliondecreaseinpropertytaxpayments causedbythetimingofpropertytaxpaymentsateach yearend,partiallyoffsetbyhigherassessedproperty taxvalues.
A$21millionreductioninpaymentsforscheduled nuclearrefuelingandmaintenanceoutagesatthe Callawayenergycenter.Therewasnorefuelingand maintenanceoutagein2012.
A$20milliondecreaseinmajorstormrestoration
costs.A$15millionreductioninenergyefficiency
expenditures.
Incometaxrefundsof$3millionin2012,compared withincometaxpaymentsof$9millionin2011.
AmerenMissouri's2011taxliabilitywasreducedby accelerateddeductionsauthorizedbyeconomic stimuluslegislation,useofitsnetoperatingloss carryforwards,andotherdeductions.Ameren Missouri's2012taxrefundisprimarilyduetoatax deductionrelatedtotherepurchaseofdebt,partially offsetbyanincreaseinincomefromtheresolutionof the2009and2010electricrateorderappeals discussedabove.
An$11millionreductioninlaborcostsduetostaff
reductions.AmerenIllinoisAmerenIllinois'cashfromoperatingactivitiesincreasedin2012comparedwith2011.Thefollowingitems contributedtotheincreaseinAmerenIllinois'cashfrom operatingactivitiesduring2012,comparedwith2011:
A$65milliondecreaseinpensionandpostretirementbenefitplancontributions.In2011,AmerenIllinois contributedtoAmeren'spostretirementbenefitplan trustanincremental$100millioninexcessofAmeren Illinois'annualpostretirementnetperiodiccostfor regulatorypurposes.
A$46milliondecreaseinthecostofnaturalgasheldin storagebecauseoflowerprices.
Electricandnaturalgasmargins,asdiscussedin ResultsofOperations,thatincreasedby$26million, excludingimpactsofthenoncashIEIMArevenue requirementreconciliationadjustment.
Anet$20milliondecreaseincollateralpostedwith counterpartiesdue,inpart,tochangesinthemarket priceofnaturalgasandincontractedcommodity
volumes.50 A$20milliondecreaseinpaymentsrelatedtotheMISOliabilitydue,inpart,tofewerpaymentsrequiredfor December2011purchasescomparedwithpayments requiredforDecember2010purchases.
A$16millionincreaseinnaturalgascommodityover-recoveredcostsunderthePGA.
A$15milliondecreaseinmajorstormrestoration
costs.A$12milliondecreaseininterestpayments,primarily duetotheredemptionofseniorsecurednotesinJune
2011.An$8millionincreaseinincometaxrefundsprimarily duetolowerpretaxbookincomealongwithatax deductionrelatedtotherepurchaseofdebt.ThefollowingitemspartiallyoffsettheincreaseinAmerenIllinois'cashfromoperatingactivitiesduring2012, comparedwith2011:
Thepremiumspaidtodebtholdersfortherepurchaseofthetenderedprincipalofmultipleseriesoftendered seniorsecurednotes,whichpremiumstotaled
$76million.
A$68milliondecreaseincashcollectionsfrom customerreceivables,primarilycausedbymilder weatherinDecember2011,comparedwithDecember
2010.A$37millionincreaseinenergyefficiencyexpenditures forcustomerprogramsthatarerecoveredthrough customerbillingsovertime.
A$26millionincreaseinpaymentstocontractorsfor reliability,maintenance,andIEIMAprojects.
A$12millionincreaseinlaborcosts,primarilybecause ofstaffadditionsduetotherequirementsoftheIEIMA.
Aone-time$7.5millionpaymenttotheIllinoisScience andEnergyInnovationTrust,asrequiredbytheIEIMA.PensionandPostretirementPlansAmeren'spensionplansarefundedincompliancewithincometaxregulationsandtomeetfederalfundingor regulatoryrequirements.Asaresult,Amerenexpectsto funditspensionplansatalevelequaltothegreaterofthe pensionexpenseorthelegallyrequiredminimum contribution.ConsideringAmeren'sassumptionsat December31,2013,itsinvestmentperformancein2013, anditspensionfundingpolicy,Amerenexpectstomake annualcontributionsof$20millionto$100millionineach ofthenextfiveyears,withaggregateestimated contributionsof$270million.WeexpectAmerenMissouri's andAmerenIllinois'portionofthefuturefunding requirementstobe52%and47%,respectively.These amountsareestimates.Theestimatesmaychangewith actualinvestmentperformance,changesininterestrates, changesinourassumptions,changesingovernment regulations,andanyvoluntarycontributions.In2013, Amerencontributed$156milliontoitspensionplans.See Note11-RetirementBenefitsunderPartII,Item8,ofthis reportforadditionalinformation.OnDecember2,2013,AmerencompletedthedivestitureofNewAERtoIPH.Inaccordancewiththetransactionagreement,Amerenretainedthepension obligationsasofDecember2,2013,associatedwiththe currentandformeremployeesofNewAERandits subsidiarieswhowereincludedintheAmerenRetirement PlanandtheAmerenSupplementalRetirementPlan.
Amerenalsoretainedthepostretirementbenefitobligations associatedwiththeemployeesofNewAERandits subsidiarieswhowereeligibletoretireatDecember2, 2013,fromtheAmerenRetireeMedicalPlanandthe AmerenGroupLifeInsurancePlan.IPHassumedthe existingpensionandotherpostretirementbenefit obligationsassociatedwithEEI'scurrentandformer employeesthatareincludedinEEI'ssingle-employer pensionandotherpostretirementplans.Coincidentwith Ameren'sdivestitureofNewAER,asignificantnumberof employeesleftAmerenwhichrequiredameasurementof Ameren'spensionandpostretirementbenefitplanassets andobligationsasofDecember2,2013,basedupon currentmarketconditions.Thereductioninobligationsfor thepostretirementbenefitplansandtheaccelerated recognitionofgainspreviouslyrecordedinaccumulated othercomprehensiveincomethathadnotpreviouslybeen recognizedthroughnetperiodicbenefitcostforthepension andpostretirementbenefitplansresultedina$19million pretaxcurtailmentgain,whichwasincludedindiscontinued
operations.AmerencompletedanothermeasurementasofDecember31,2013,asisitshistoricalaccountingpractice, baseduponthemarketconditionsattheendoftheyear.
ExcludingtheEEIplans,whichwereassumedbyIPHduring 2013,Ameren'sunfundedobligationunderitspensionand otherpostretirementbenefitplanswas$461millionand
$1,143millionasofDecember31,2013,andDecember31, 2012,respectively.Theprimaryfactorscontributingtothis unfundedobligationreductionduring2013werea75basis pointincreaseinthepensionandotherpostretirement benefitplandiscountratesusedtodeterminethepresent valueoftheobligations,andassetreturnsbeingbetterthan expected.Theoffsettotheunfundedobligationreduction wasprimarilyareductiontoregulatoryassets.CashFlowsfromInvestingActivities2013versus2012Ameren'scashusedininvestingactivitiesassociatedwithcontinuingoperationsincreasedby$287millionduring2013,comparedwith2012.Capitalexpenditures increased$316million,primarilybecauseofincreased expendituresfortransmissioninIllinois,reliabilityprojects, andstormrestorationcosts.Theincreaseincashflows usedininvestingactivitieswaspartiallyoffsetbya
$46milliondecreaseinnuclearfuelexpendituresdueto timingofpurchases.CashusedininvestingactivitiesassociatedwithAmeren'sdiscontinuedoperationsincreased$126million during2013,comparedwith2012,primarilyduetothe requirementtoleavecashof$235millionwithNewAERupon divestiture,pursuanttothetransactionagreementwithIPH.
Thisuseofcashwaspartiallyoffsetbyreducedcapital 51 expendituresin2013asaresultofthedecelerationofthescrubberconstructionprojectattheNewtonenergycenter.AmerenMissouri'scashusedininvestingactivitiesdecreased$16millionduring2013,comparedwith2012, primarilyduetochangesinmoneypooladvancesanda
$46milliondecreaseinnuclearfuelexpendituresdueto timingofpurchases.Thedecreaseincashusedininvesting activitieswaspartiallyoffsetbyincreasedcapital expendituresandtheabsencein2013ofa2012receiptof
$18millionforfederaltaxgrantsrelatedtorenewable energyconstructionprojects.Capitalexpenditures increased$53million,primarilybecauseofincreased expendituresforreliabilityprojectsandanincreaseinstorm restorationcosts.AmerenIllinois'cashusedininvestingactivitiesincreased$258millionduring2013,comparedwith2012.
Capitalexpendituresincreased$259million,primarilydue toincreasedexpendituresof$164millionfortransmission andreliabilityprojects,$18millionforstormrestoration costs,and$12millionforIEIMAprojects.2012versus2011Ameren'scashusedininvestingactivitiesassociatedwithcontinuingoperationsincreasedby$204millionduring2012,comparedwith2011.Capitalexpenditures increased$182millionprimarilybecauseofincreased expendituresforreliability,boiler,andturbineprojects, whichmorethanoffsetadecreaseinstormrestoration costs.Cashusedininvestingactivitiesalsoincreased becauseofa$29millionincreaseinnuclearfuel expendituresduetotimingofpurchases,whichwas partiallyoffsetbyareceiptof$18millionoffederaltax grantsrelatedtorenewableenergyconstructionprojects.Cashusedininvestingactivitiesassociatedwithdiscontinuedoperationsincreased$58millionduring2012, comparedwith2011.Capitalexpendituresincreased
$26millionasaresultofincreasedexpendituresrelatedto thescrubberprojectattheNewtonenergycenter,which morethanoffsetareductioninmaintenanceandupgrade projectexpendituresduetothetimingofenergycenter outages.In2012,proceedsof$16millionwerereceived fromthesaleoftheMedinaValleyenergycenter'snet propertyandplant.In2011,Gencoreceived$45millionof proceedsfromthesaleofitsinterestintheColumbiaCT energycenter.AmerenMissouri'scashusedininvestingactivitiesincreased$76millionduring2012,comparedwith2011.
Capitalexpendituresincreased$45millionprimarily becauseofincreasedexpendituresforreliability,boiler,and turbineprojects,whichmorethanoffsetadecreasein stormrestorationcosts.Cashusedininvestingactivities alsoincreasedduetoa$29millionincreaseinnuclearfuel expendituresduetotimingofpurchasesforthespring 2013reload.In2012,cashflowsfrominvestingactivities benefitedfrom$18millionoffederaltaxgrantsreceived relatedtorenewableenergyconstructionprojects.In2011, cashflowsusedininvestingactivitiesbenefitedfroma$9millionreceiptfromasettlementwiththeDOErelatedto nuclearwastedisposal.AmerenIllinois'cashusedininvestingactivitiesincreased$141millionduring2012,comparedwith2011.
Capitalexpendituresincreased$91millionasaresultof increasedexpendituresforreliabilityprojects,including
$27millionforIEIMAprojects,whichmorethanoffseta decreaseinstormrestorationcosts.In2011,cashfrom investingactivitiesbenefitedfromrepaymentsofadvances previouslypaidtoATXIasaresultofthecompletionofa projectunderajointownershipagreement.CapitalExpendituresThefollowingtablepresentsthecapitalexpendituresbytheAmerenCompaniesfortheyearsendedDecember31,2013,2012,and2011:201320122011 Ameren (a)..................$1,379$1,063$881AmerenMissouri
............
648595550AmerenIllinois
..............
701442351(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandtheeliminationofintercompanytransfers.Ameren's2013capitalexpendituresconsistedofthefollowingexpendituresatitssubsidiaries.AmerenMissouri spent$53milliononLabadieprecipitatorupgrades,
$30milliononstormrestoration,and$29milliononthe replacementoftheCallawaynuclearreactorheadscheduled tobereplacedduringthe2014refuelingandmaintenance outage.AmerenIllinoisspent$269millionontransmission initiatives,$39milliononIEIMAprojects,and$23million onstormrestoration.ATXIspent$51millionontheIllinois Riversproject.Othercapitalexpendituresweremade principallytomaintain,upgrade,andexpandthereliability ofthetransmissionanddistributionsystemsofAmeren MissouriandAmerenIllinois,aswellastofundvarious AmerenMissourienergycenterupgrades.Ameren's2012capitalexpendituresconsistedofthefollowingexpendituresatitssubsidiaries.AmerenMissouri spent$30milliononthereplacementoftheCallaway nuclearreactorhead,scheduledtobereplacedduringthe 2014refuelingandmaintenanceoutageand$23millionon aboilerupgradeproject.AmerenIllinoisspent$27million onIEIMAprojects.Othercapitalexpendituresweremade principallytomaintain,upgrade,andexpandthereliability ofthetransmissionanddistributionsystemsofAmeren MissouriandAmerenIllinois,aswellastofundvarious AmerenMissourienergycenterupgrades.Ameren's2011capitalexpendituresconsistedofthefollowingexpendituresatitssubsidiaries.AmerenMissouri spent$24milliononbuildingitsMarylandHeightsenergy centerand$31milliononstorm-relatedrepaircosts.
AmerenIllinoisincurredstorm-relatedrepaircostsof
$20million.Othercapitalexpendituresweremade principallytomaintain,upgrade,andexpandthereliability 52 ofthetransmissionanddistributionsystemsofAmerenMissouriandAmerenIllinois,aswellastofundvarious AmerenMissourienergycenterupgrades.ThefollowingtablepresentsAmeren'sestimatedcapitalexpendituresthatwillbeincurredfrom2014through 2018,includingconstructionexpenditures,allowancefor fundsusedduringconstructionforAmeren'srate-regulated utilitybusinesses,andexpendituresforcompliancewith knownandexistingenvironmentalregulations.Ameren expectstoallocatemoreofitsdiscretionarycapital expenditurestoAmerenIllinoisandATXIbasedontheir regulatoryframeworks.20142015-2018TotalAmerenMissouri...$760$2,495-$2,740$3,255-$3,500AmerenIllinois....8002,600-2,8603,400-3,660 ATXI............2401,110-1,2001,350-1,440 Other (a)..........2570-7595-100 Ameren..........$1,825$6,275-$6,875$8,100-$8,700(a)Includestheeliminationofintercompanytransfers.AmerenMissouri'sestimatedcapitalexpendituresincludetransmission,distribution,andgeneration-relatedinvestments,aswellasexpendituresforcompliancewithenvironmentalregulations.AmerenIllinois'estimatedcapitalexpendituresareprimarilyforelectricandnatural gastransmissionanddistribution-relatedinvestments,and estimatedcapitalexpendituresincrementaltohistorical averageelectricdeliverycapitalexpenditurestomodernize itsdistributionsystempursuanttotheIEIMA.Estimated capitalexpendituresforATXIincludethethreeMISO-approvedmulti-valuetransmissionprojects.Foradditional informationregardingtheIEIMAcapitalexpenditure requirementsandATXI'stransmissionprojects,seeBusinessunderPartI,Item1,ofthisreport.WecontinuallyreviewAmerenMissouri'sgenerationportfolioandexpectedpowerneeds.Asaresult,Ameren Missouricouldmodifyitsplanforgenerationcapacity,the typeofgenerationassettechnologythatwillbeemployed, andwhethercapacityorpowermaybepurchased,among otherthings.Additionally,wecontinuallyreviewthe reliabilityofourtransmissionanddistributionsystems, expectedcapacityneeds,andopportunitiesfortransmission investments.Thetimingandamountofinvestmentscould varybecauseofchangesinexpectedcapacity,thecondition oftransmissionanddistributionsystems,andourability andwillingnesstopursuetransmissioninvestments, amongotherthings.Anychangesinfuturegeneration, transmission,ordistributionneedscouldresultin significantcapitalexpendituresorlossesbeingincurred, whichcouldbematerial.EnvironmentalCapitalExpendituresAmerenMissouriwillincursignificantcostsinfutureyearstocomplywithexistingandknownfederalandstateregulationsincludingthoserequiringthereductionofSO 2 ,NOx,andmercuryemissionsfromitscoal-firedenergy
centers.SeeNote15-CommitmentsandContingenciesunderPartII,Item8,ofthisreportforadiscussionofexisting environmentallawsandregulationsthataffect,ormay affect,ourfacilitiesandcapitalcoststocomplywithsuch lawsandregulations.CashFlowsfromFinancingActivities2013versus2012In2013,wereducedourcostofborrowingsthroughtherepaymentandredemptionoflong-termindebtedness,whichhadhigherinterestratesthanthecommercialpaper andseniorsecureddebtissuedtofinancesuchrepayments andredemptions.During2013,issuancesunderthe AmerenandAmerenMissouricommercialpaperprograms wereavailableatalowerinterestratethantheinterestrate availableunderthe2012CreditAgreements.Ameren'snetcashusedinfinancingactivitiesassociatedwithcontinuingoperationsdecreasedduring 2013comparedwith2012.In2013,Ameren'scashflow fromoperatingactivitiesof$1.6billionexceededitscapital expendituresof$1.4billionwhilein2012Ameren'scash flowfromoperatingactivitiesof$1.4billionexceededits capitalexpendituresof$1.1billion.During2013,Ameren usedcashflowfromoperatingactivities,otheravailable cashonhand,andcommercialpaperissuancesinpart,to paycommonstockdividendsof$388million,redeem
$244millionoflong-termAmerenMissouriindebtedness, andfundthe$235millioncashrequirementatdivested NewAERupondivestitureonDecember2,2013,pursuant tothetransactionagreementwithIPH.Inaddition,Ameren Illinoisissued$280millioninseniorsecureddebtandused thenetproceedsof$276milliontorepayatmaturity
$150millionoflong-termindebtedness.Incomparison,in 2012,Amerensubsidiariesissued$885millioninsenior debtandusedtheproceeds,togetherwithotheravailable cash,toredeemorrepayexistinglong-termindebtedness of$754millionandpayrelatedpremiums.Additionally,in 2012,Amerenrepaid$148millionofitsnetshort-term
debt.During2013,nofinancingcashflowswereutilizedtomeettheworkingcapitalandinvestingrequirementsofour discontinuedoperations.AmerenMissouri'snetcashusedinfinancingactivitiesincreasedduring2013,comparedwith2012.Ameren Missouriusedcashonhand,netmoneypoolreceipts,and theexcesscashfromoperatingactivitiesaftercapital expenditures,toredeemorrepayexistinglong-term indebtednessof$244millionandpaycommonstock dividendsof$460million.Incomparison,in2012,Ameren Missouriissued$485millionof3.90%seniorsecured notesandusedtheproceeds,togetherwithotheravailable cash,toredeemorrepayexistinglong-termindebtedness of$422millionandtopayrelatedpremiums.AmerenIllinois'financingactivitiesprovidednetcashof$45millionin2013comparedwith2012,whenfinancing activitiesusednetcashof$103million.During2013, AmerenIllinoisissued$280millioninseniorsecureddebt andusedthenetproceedsof$276milliontorepayat maturity$150millionoflong-termindebtedness,andpay 53 commonstockdividendsof$110million.During2012,AmerenIllinoisissued$400millionof2.70%senior securednotesandusedtheproceeds,togetherwithother availablecash,toredeemorrepayexistinglong-term indebtednessof$332millionandtopayrelatedpremiums.
AmerenIllinoispaidcommonstockdividendsof
$189millionin2012.2012versus2011During2012,wereplacedandextendedourcreditagreements.Wereducedourrelianceonshort-termdebtwhilemaintainingadequatecashbalancesforworking capitalneeds.Ameren'snetcashusedinfinancingactivitiesassociatedwithcontinuingoperationsdecreasedduring 2012,comparedwith2011.Repaymentsofnetshort-term debtandcreditagreementborrowingsdecreasedby
$333millionin2012comparedwith2011.Thedecreasein cashprovidedbyoperatingactivitiesin2012,combined withtheincreaseincapitalexpenditures,resultedinless cashavailabletofundfinancingactivities.However,Ameren wasstillabletorepayalloutstandingshort-termdebtthat existedattheendof2011.In2012,Amerensubsidiaries issued$885millioninseniordebtandusedtheproceeds, togetherwithotheravailablecash,toredeemorrepay existinglong-termindebtednessof$754millionandtopay relatedpremiums.In2011,AmerenIllinoisfundedthe
$150millionmaturityofitsseniorsecurednoteswithcash onhandandoperatingcashflows.Therewasalsoa reductioninrefundsofadvancespreviouslyreceivedfrom generatorsof$73millionduetoprojectcompletionin 2011.In2011,commonstockissuedforDRPlusandthe 401(k)planincreasedcashflowsfromfinancingactivities by$65million.In2012,Amerenshareswerepurchasedin theopenmarketforDRPlusandthe401(k)plan,resulting innoncashfinancingactivityof$7millionduetothetiming ofDRPluscommonstockdividendfunding.During2012,nofinancingcashflowswereutilizedtomeetworkingcapitalandinvestingrequirementsassociatedwithdiscontinuedoperations.In2011,$100millionof short-termborrowingobligationswererepaidusingsurplus netcashfromoperatingactivities.AmerenMissouri'snetcashusedinfinancingactivitiesdecreasedduring2012,comparedwith2011.InSeptember 2012,AmerenMissouriissued$485millionof3.90%
seniorsecurednotesandusedtheproceeds,togetherwith otheravailablecash,toredeemorrepayexistinglong-term indebtednessof$422millionandtopayrelatedpremiums.
In2011,refundsofadvancespreviouslyreceivedfrom generatorsdecreasedcashflowsfromfinancingactivities by$19millionasaresultofprojectcompletion.AmerenIllinois'netcashusedinfinancingactivitiesdecreasedduring2012,comparedwith2011.InAugust 2012,AmerenIllinoisissued$400millionof2.70%senior securednotesandusedtheproceeds,togetherwithother availablecash,toredeemorrepayexistinglong-term indebtednessof$332millionandpayrelatedpremiums.In 2011,AmerenIllinoisfundedthe$150millionmaturityof itsseniorsecurednotesbyusingcashonhandand operatingcashflows.In2012,AmerenIllinoiscommon stockdividendsdecreasedby$138millionrelativeto2011 dividends.Additionally,therewasareductionin2012in refundsofadvancespreviouslyreceivedfromgeneratorsof
$53millionduetoprojectcompletionin2011.CreditFacilityBorrowingsandLiquidityTheliquidityneedsofAmeren,AmerenMissouriandAmerenIllinoisaretypicallysupportedthroughtheuseofavailablecash,short-termintercompanyborrowings, drawingsundercommittedbankcreditagreements,or,for AmerenandAmerenMissouri,commercialpaperissuances.
SeeNote4-Short-termDebtandLiquidityunderPartII, Item8,ofthisreportforadditionalinformationoncredit agreements,short-termborrowingactivity,commercialpaper issuances,relevantinterestrates,andborrowingsunder Ameren'smoneypoolarrangements.Thefollowingtablepresentsthecommitted2012CreditAgreementsofAmeren,AmerenMissouri,andAmerenIllinois,andthecreditcapacityavailableundersuchagreements,consideringreductionsforcommercialpaperissuancesandlettersof credit,asofDecember31,2013:ExpirationBorrowingCapacityCreditAvailableAmerenandAmerenMissouri:2012MissouriCreditAgreement
...........................................November2017$1,000$1,000AmerenandAmerenIllinois:2012IllinoisCreditAgreement (a)...........................................November20171,1001,100 Ameren:Less:Commercialpaperoutstanding......................................(c)
(368)Less:Lettersofcredit (b)................................................(c)(14)Total...................................................................
$2,100$1,718(a)TheborrowingsublimitofAmerenIllinoiswillmatureandexpireonSeptember30,2014,subjecttoextensionona364-daybasis,orforalongerperioduponnoticebyAmerenIllinoisofreceiptofanyandallrequiredfederalorstateregulatoryapprovals,aspermittedunderthe2012IllinoisCreditAgreement,butinnoeventlaterthanNovember14,2017.InOctober2013,AmerenIllinoisfiledapetitionseekingstate regulatoryapprovalnecessarytoextendthematuritydateofitsborrowingsublimitunderthe2012IllinoisCreditAgreementtoNovember14, 2017.(b)AsofDecember31,2013,$11millionofthelettersofcreditrelatetoAmeren'songoingcreditsupportobligationstoNewAER.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8,ofthisreportforadditionalinformation.(c)Notapplicable.
54 The2012CreditAgreementsareusedtoborrowcash,toissuelettersofcredit,andtosupportissuancesunderAmeren'sandAmerenMissouri'scommercialpaper programs.Eitherofthe2012CreditAgreementsareavailable toAmerentosupportissuancesunderAmeren'scommercial paperprogram,subjecttoborrowingsublimits.The2012 MissouriCreditAgreementisavailabletosupportissuances underAmerenMissouri'scommercialpaperprogram.
AmerenIllinois'commercialpaperprogram,underwhichno commercialpaperwaseverissued,wasterminatedin2013.
During2013,issuancesundertheAmerenandAmeren Missouricommercialpaperprogramswereavailableata lowerinterestratethantheinterestrateavailableunderthe 2012CreditAgreements.Assuch,commercialpaperissuanceswereapreferredsourceofthird-partyshort-termdebtrelativetocreditfacilityborrowings.Themaximumaggregateamountavailabletoeachborrowerundereachfacilityisshowninthefollowingtable (suchamountbeingsuchborrower's"BorrowingSublimit"):2012MissouriCreditAgreement2012IllinoisCreditAgreement Ameren..............$500$300AmerenMissouri.......800(a)AmerenIllinois.........(a)800(a)Notapplicable.Subjecttoapplicableregulatoryshort-termborrowingauthorizations,thesecreditarrangementsarealsoavailable toAmeren'snon-state-regulatedsubsidiariesthroughdirect short-termborrowingsfromAmerenandtomostof Ameren'snon-rate-regulatedsubsidiaries,including,butnot limitedto,AmerenServices,throughamoneypool agreement.Amerenhasmoneypoolagreementswithand amongitssubsidiariestocoordinateandtoprovidefor certainshort-termcashandworkingcapitalrequirements.Inaddition,aunilateralborrowingagreementamong Ameren,AmerenIllinois,andAmerenServicesenables AmerenIllinoistomakeshort-termborrowingsdirectly fromAmeren.Pursuanttothetermsoftheunilateral borrowingagreement,theaggregateamountofborrowings outstandingatanytimebyAmerenIllinoisunderthe unilateralborrowingagreementandthemoneypool agreement,togetherwithanyoutstandingAmerenIllinois externalcreditfacilityborrowingsorcommercialpaper issuances,maynotexceed$500million,pursuanttothe authorizationfromtheICC.AmerenIllinoisdidnotborrow undertheunilateralborrowingagreementduring2013or 2012.AmerenServicesisresponsibleforoperationand administrationofthemoneypoolagreements.SeeNote4-Short-termDebtandLiquidityunderPartII,Item8,ofthis reportforadetailedexplanationofthemoneypool arrangementsandtheunilateralborrowingagreement.Theissuanceofshort-termdebtsecuritiesbyAmeren'sutilitysubsidiariesissubjecttoapprovalbyFERCunderthe FederalPowerAct.InFebruary2014,FERCissuedanorder effectiveMarch17,2014,authorizingtheissuanceofupto
$1billionofshort-termdebtsecuritiesforAmerenMissouri.
TheauthorizationterminatesonMarch16,2016.InSeptember 2012,FERCissuedanorderauthorizingtheissuanceofupto
$1billionofshort-termdebtsecuritiesbyAmerenIllinois.The authorizationterminatesonSeptember30,2014.Ameren Illinoiswillfileforatwo-yearextensionoftheFERCshort-term borrowingauthorizationin2014.Theissuanceofshort-termdebtsecuritiesbyAmerenisnotsubjecttoapprovalbyanyregulatorybody.TheAmerenCompaniescontinuallyevaluatetheadequacyandappropriatenessoftheirliquidityarrangements givenchangingbusinessconditions.Whenbusiness conditionswarrant,changesmaybemadetoexistingcredit agreementsortoothershort-termborrowingarrangements.Long-termDebtandEquityThefollowingtablepresentstheissuancesofcommonstockandtheissuances,redemptions,repurchases,andmaturitiesoflong-termdebt(netofanyissuancediscounts)fortheyears2013,2012,and2011fortheAmerenCompanies.
TheAmerenCompaniesdidnothaveanyredemptionsandrepurchasesofpreferredstockduringtheyears2013,2012,and 2011.Foradditionalinformationrelatedtothetermsandusesoftheseissuancesandthesourcesoffundsandtermsforthe redemptions,seeNote5-Long-termDebtandEquityFinancingsunderPartII,Item8,ofthisreport.MonthIssued,Redeemed,Repurchased,orMatured201320122011 IssuancesLong-termdebt AmerenMissouri:3.90%Seniorsecurednotesdue2042
.............................
September$-$482$-AmerenIllinois:2.70%Seniorsecurednotesdue2022
.............................
August-400-4.80%Seniorsecurednotesdue2043
.............................
December 278--TotalAmerenlong-termdebtissuances
..............................$278$882$-Commonstock
Ameren:DRPlusand401(k)
............................................
Various$-$-$65Totalcommonstockissuances
.....................................
$-$-$65TotalAmerenlong-termdebtandcommonstockissuances
..............$278$882$65 55 MonthIssued,Redeemed,Repurchased,orMatured201320122011Redemptions,RepurchasesandMaturitiesLong-termdebt AmerenMissouri:CityofBowlingGreencapitallease(PenoCreekCT)
..................
Various$5$5$55.25%Seniorsecurednotesdue2012
.............................
September-173-6.00%Seniorsecurednotesdue2018
.............................
September-71-6.70%Seniorsecurednotesdue2019
.............................
September-121-5.10%Seniorsecurednotesdue2018
.............................
September-1-5.10%Seniorsecurednotesdue2019
.............................
September-56-19935.45%Seriespollutioncontrolrevenuebondsdue2028
..........
October 44--4.65%Seniorsecurednotesdue2013
.............................
October 200--AmerenIllinois:6.625%Seniorsecurednotesdue2011
............................
June--1509.75%Seniorsecurednotesdue2018
.............................
August-87-6.25%Seniorsecurednotesdue2018
.............................
August-194-2000SeriesA5.50%pollutioncontrolrevenuebondsdue2014
.........August-51-6.20%Series1992Bdue2012
...................................
November-1-8.875%Seniorsecurednotesdue2013
............................
December 150--TotalAmerenlong-termdebtredemptions,repurchasesandmaturities
......$399$760$155InOctober2013,AmerenfiledaFormS-8registrationstatementwiththeSEC,authorizingtheofferingof4millionadditionalsharesofitscommonstockunderits401(k) plan.Sharesofcommonstocksoldunderthe401(k)plan are,atAmeren'soption,newlyissuedshares,treasury shares,orsharespurchasedintheopenmarketorin privatelynegotiatedtransactions.AmerenfiledaFormS-3registrationstatementwiththeSECinJune2011,authorizingtheofferingof6million additionalsharesofitscommonstockunderDRPlus.
SharesofcommonstocksoldunderDRPlusare,at Ameren'soption,newlyissuedshares,treasuryshares,or sharespurchasedintheopenmarketorinprivately negotiatedtransactions.In2013and2012,Amerenshares werepurchasedintheopenmarketforDRPlusandits 401(k)plan.UnderDRPlusandits401(k)plan,Ameren issued2.2millionsharesofcommonstockin2011,which werevaluedat$65million.InJune2012,Ameren,AmerenMissouriandAmerenIllinoisfiledaFormS-3shelfregistrationstatement registeringtheissuanceofanindeterminateamountof certaintypesofsecurities,whichexpiresinJune2015.TheAmerenCompaniesmaysellsecuritiesregisteredundertheireffectiveregistrationstatementsifmarket conditionsandcapitalrequirementswarrantsuchsales.
Anyofferandsalewillbemadeonlybymeansofa prospectusthatmeetstherequirementsoftheSecurities Actof1933andtherulesandregulationsthereunder.IndebtednessProvisionsandOtherCovenantsSeeNote4-Short-termDebtandLiquidityandNote5-Long-termDebtandEquityFinancingsunderPartII,Item8,ofthisreportforadiscussionofcovenantsand provisions(andapplicablecross-defaultprovisions) containedinourbankcreditagreementsandincertainof theAmerenCompanies'indenturesandarticlesof
incorporation.AtDecember31,2013,theAmerenCompanieswereincompliancewiththeprovisionsandcovenantscontained withintheircreditagreements,indentures,andarticlesof
incorporation.Weconsideraccesstoshort-termandlong-termcapitalmarketsasignificantsourceoffundingforcapital requirementsnotsatisfiedbyouroperatingcashflows.
Inabilitytoraisecapitalonreasonableterms,particularly duringtimesofuncertaintyinthecapitalmarkets,could negativelyaffectourabilitytomaintainandexpandour businesses.Afterassessingitscurrentoperating performance,liquidity,andcreditratings(seeCredit Ratingsbelow),Ameren,AmerenMissouriandAmeren Illinoiseachbelievesthatitwillcontinuetohaveaccessto thecapitalmarkets.However,eventsbeyondAmeren's, AmerenMissouri'sandAmerenIllinois'controlmaycreate uncertaintyinthecapitalmarketsormakeaccesstothe capitalmarketsuncertainorlimited.Sucheventscould increaseourcostofcapitalandadverselyaffectourability toaccessthecapitalmarkets.
DividendsAmerenpaidtoitsshareholderscommonstockdividendstotaling$388million,or$1.60pershare,in2013,$382million,or$1.60pershare,in2012,and$375million, or$1.555pershare,in2011.TheamountandtimingofdividendspayableonAmeren'scommonstockarewithinthesolediscretionof Ameren'sboardofdirectors.Theboardofdirectorshasnot setspecifictargetsorpayoutparameterswhendeclaring commonstockdividends.Asinthepast,theboardof directorsisexpectedtoconsidervariousissues,including Ameren'soverallpayoutratio,payoutratiosofourpeers, projectedcashflowandpotentialfuturecashflow requirements,historicalearningsandcashflow,projected earnings,impactsofregulatoryordersorlegislation,and otherkeybusinessconsiderations.Amerenexpectsits dividendpayoutratiotobebetween55%and70%of 56 earningsoverthenextfewyears.OnFebruary14,2014,theboardofdirectorsofAmerendeclaredaquarterlydividend onAmeren'scommonstockof40centspershare,payable onMarch31,2014,toshareholdersofrecordonMarch12, 2014.Certainofourfinancialagreementsandcorporateorganizationaldocumentscontaincovenantsandconditions that,amongotherthings,restricttheAmerenCompanies' paymentofdividendsincertaincircumstances.AmerenIllinois'articlesofincorporationrequireitsdividendpaymentsoncommonstocktobebasedonratios ofcommonstocktototalcapitalizationandotherprovisions relatedtocertainoperatingexpensesandaccumulationsof earnedsurplus.AmerenMissouriandAmerenIllinois,aswellascertainothernonregistrantAmerensubsidiaries,aresubject toSection305(a)oftheFederalPowerAct,whichmakesit unlawfulforanyofficerordirectorofapublicutility,as definedintheFederalPowerAct,toparticipateinthe makingorpayingofanydividendfromanyfunds"properly includedincapitalaccount."FERChasconsistentlyinterpretedtheprovisiontoallowdividendstobepaidas longas(1)thesourceofthedividendsisclearlydisclosed, (2)thedividendsarenotexcessive,and(3)thereisnoself-dealingonthepartofcorporateofficials.Ataminimum, Amerenbelievesthatdividendscanbepaidbyits subsidiariesthatarepublicutilitiesfromnetincomeand retainedearnings.Inaddition,underIllinoislaw,Ameren Illinoismaynotpayanydividendonitsstockunless, amongotherthings,itsearningsandearnedsurplusare sufficienttodeclareandpayadividendafterprovisionis madeforreasonableandproperreserves,orunlessAmeren IllinoishasspecificauthorizationfromtheICC.AmerenhascommittedtoFERCtomaintainaminimumof30%equityinitscapitalstructureatAmeren
Illinois.AtDecember31,2013,Ameren,AmerenMissouriandAmerenIllinoiswerenotrestrictedfrompayingdividends.AtDecember31,2013,theamountofrestrictednetassetsofwhollyownedsubsidiariesofAmerenthatmay notbedistributedtoAmerenintheformofaloanor dividendwas$2billion.ThefollowingtablepresentscommonstockdividendspaidbyAmerenCorporationtoitscommonshareholdersandbyAmeren'sregistrantsubsidiariestoAmeren.201320122011AmerenMissouri
...............................................................................$460$400$403AmerenIllinois
.................................................................................
110189327DividendspaidbyAmeren
........................................................................
388382375CertainoftheAmerenCompanieshaveissuedpreferredstock,whichprovidesforcumulativepreferred stockdividends.Eachcompany'sboardofdirectors considersthedeclarationofthepreferredstockdividendsto shareholdersofrecordonacertaindate,statingthedateonwhichthedividendispayableandtheamounttobepaid.
SeeNote5-Long-termDebtandEquityFinancingsunder PartII,Item8,ofthisreportforfurtherdetailconcerning thepreferredstockissuances.
57 ContractualObligationsThefollowingtablepresentsourcontractualobligationsasofDecember31,2013.SeeNote11-RetirementBenefitsunderPartII,Item8,ofthisreportforinformationregardingexpectedminimumfundinglevelsforourpensionplans.Theseexpectedpensionfundingamountsarenotincludedinthetablebelow.Inaddition,routineshort-termpurchaseorder commitmentsarenotincluded.
TotalLessthan1Year1-3Years3-5YearsAfter5 Years Ameren: (a)Long-termdebtandcapitalleaseobligations (b)(c).......................$6,048$534$515$1,521$3,478Interestpayments (d).............................................3,6733316054962,241Operatingleases (e)...............................................11714262651Otherobligations (f)..............................................6,3491,5192,1881,2011,441Totalcashcontractualobligations...................................$16,187$2,398$3,334$3,244$7,211AmerenMissouri:Long-termdebtandcapitalleaseobligations (c).........................$3,764$109$386$814$2,455Interestpayments (d).............................................2,5742113953251,643Operatingleases (e)...............................................10611222350Otherobligations (f)..............................................4,3088951,6881,030695Totalcashcontractualobligations...................................$10,752$1,226$2,491$2,192$4,843AmerenIllinois:
Long-termdebt (b)(c)..............................................$1,859$-$129$707$1,023Interestpayments (d).............................................1,086107210171598Operatingleases (e)...............................................72221Otherobligations (f)..............................................1,960573470171746Totalcashcontractualobligations...................................$4,912$682$811$1,051$2,368(a)IncludesamountsforregistrantandnonregistrantAmerensubsidiariesandintercompanyeliminations.
(b)Excludesfair-marketvalueadjustmentsofAmerenIllinois'long-termdebtof$4million.
(c)Excludesunamortizeddiscountandpremiumof$14millionatAmeren,$7millionatAmerenMissouriand$7millionatAmerenIllinois.
(d)Theweighted-averagevariable-ratedebthasbeencalculatedusingtheinterestrateasofDecember31,2013.
(e)Amountsforcertainland-relatedleaseshaveindefinitepaymentperiods.Theannualobligationof$2million,$1million,and$1millionforAmeren,AmerenMissouriandAmerenIllinois,respectively,fortheseitemsisincludedintheLessthan1Year,1-3Years,and3-5Years
columns.(f)SeeOtherObligationsinNote15-CommitmentsandContingenciesunderPartII,Item8,ofthisreportfordiscussionofitemsincluded herein.AsofDecember31,2013,theamountsofunrecognizedtaxbenefits(detriments)undertheauthoritativeaccountingguidanceforuncertaintax positionswere$90million,$31million,and$(1)millionfor Ameren,AmerenMissouri,andAmerenIllinois, respectively.Itisreasonablypossibletoexpectthatthe settlementofanunrecognizedtaxbenefitwillresultinan underpaymentoroverpaymentoftaxandrelatedinterest.
However,thereisahighdegreeofuncertaintywithrespect tothetimingofcashpaymentsorreceiptsassociatedwith unrecognizedtaxbenefits.Theamountandtimingofcertain paymentsorreceiptsisnotreliablyestimableor determinableatthistime.SeeNote13-IncomeTaxes underPartII,Item8,ofthisreportforinformation regardingtheAmerenCompanies'unrecognizedtax benefitsandrelatedliabilitiesforinterestexpense.Off-Balance-SheetArrangementsAtDecember31,2013,noneoftheAmerenCompanieshadoff-balance-sheetfinancingarrangements,otherthan operatingleasesenteredintointheordinarycourseof business.NoneoftheAmerenCompaniesexpecttoengage inanysignificantoff-balance-sheetfinancingarrangements inthenearfuture.SeeNote16-DivestitureTransactions andDiscontinuedOperationsunderPartII,Item8,ofthis reportforAmeren(parent)guaranteesandlettersofcredit issuedtosupportNewAERbasedonthetransaction agreementwithIPH.CreditRatingsThecreditratingsoftheAmerenCompaniesaffectourliquidity,ouraccesstothecapitalmarketsandcreditmarkets,ourcostofborrowingunderourcreditfacilities, andcollateralpostingrequirementsundercommodity
contracts.
58 ThefollowingtablepresentstheprincipalcreditratingsoftheAmerenCompaniesbyMoody's,S&P,andFitcheffectiveonthedateofthisreport:Moody'sS&PFitch Ameren:Issuer/corporatecreditrating
........Baa2BBB+BBBSeniorunsecureddebt
.............Baa2BBBBBBCommercialpaper.................P-2A-2F2AmerenMissouri:
Issuer/corporatecreditrating
........Baa1BBB+BBB+Secureddebt.....................A2AASeniorunsecureddebt
.............Baa1BBB+A-AmerenIllinois:
Issuer/corporatecreditrating
........Baa1BBB+BBB-Secureddebt.....................A2A BBB+Seniorunsecureddebt
.............Baa1BBB+BBBThecostofborrowingunderourcreditfacilitiescanalsoincreaseordecreasedependinguponthecreditratingsoftheborrower.Acreditratingisnotarecommendationto buy,sell,orholdsecurities.Itshouldbeevaluated independentlyofanyotherrating.Ratingsaresubjectto revisionorwithdrawalatanytimebytherating
organization.CollateralPostingsAnyadversechangeintheAmerenCompanies'creditratingsmayreduceaccesstocapitalandtriggeradditionalcollateralpostingsandprepayments.Suchchangesmay alsoincreasethecostofborrowingresultinginapotential negativeimpactonearnings.Cashcollateralpostingsand prepaymentsmadewithexternalparties,includingpostings relatedtoexchange-tradedcontractsatDecember31,2013, were$30million,$15million,and$15millionatAmeren, AmerenMissouriandAmerenIllinois,respectively.Cash collateralpostedbyexternalcounterpartieswithAmeren andAmerenIllinoiswas$2millionand$2million, respectively,atDecember31,2013.Sub-investment-grade issuerorseniorunsecureddebtratings(lowerthan"BBB-"
or"Baa3")atDecember31,2013,couldhaveresultedin Ameren,AmerenMissouri,orAmerenIllinoisbeing requiredtopostadditionalcollateralorotherassurancesfor certaintradeobligationsamountingto$122million,
$67million,and$55million,respectively.Changesincommoditypricescouldtriggeradditionalcollateralpostingsandprepaymentsatcurrentcredit ratings.Ifmarketpriceswere15%higherthan December31,2013,levelsinthenext12monthsand20%
higherthereafterthroughtheendofthetermofthe commoditycontracts,thenAmeren,AmerenMissouri,or AmerenIllinoiscouldberequiredtopostadditional collateralorotherassurancesforcertaintradeobligations upto$1million,$1million,and$-million,respectively.If marketpriceswere15%lowerthanDecember31,2013, levelsinthenext12monthsand20%lowerthereafter throughtheendofthetermofthecommoditycontracts, thenAmeren,AmerenMissouri,orAmerenIllinoiscouldbe requiredtopostadditionalcollateralorotherassurancesforcertaintradeobligationsupto$17million,$2million,and
$15million,respectively.ThetransactionagreementbetweenAmerenandIPHrequiredAmerentomaintainitsfinancialobligationswith respecttoallcreditsupportprovidedtoNewAERforall transactionsenteredintopriortotheclosingofthe divestitureonDecember2,2013,forupto24monthsafter theclosing.Thepermittedformsofcreditsupportforeach counterpartyagreementcouldincludeoneormoreofthe following:cash,aletterofcredit,aguarantee,orother creditsupportalternatives.Ameren'sexposurerelatedto thecontinuationofcreditsupportprovidedtoNewAER afterDecember2,2013,dependsuponthetransactionsand counterpartyagreementsthatAERanditssubsidiarieshad ineffectasofDecember2,2013,andanychangesinthe marketpricesofthesetransactionsthatrequireanincrease ordecreaseincollateralpostings.IPHshallindemnify AmerenforanypaymentsAmerenmakespursuanttothese creditsupportobligationsifthecounterpartydoesnot returnthepostedcollateraltoAmeren.IPH's indemnificationobligationissecuredbycertainAERGand Gencoassets.Inaddition,Dynegyhasprovidedalimited guaranteeof$25milliontoAmeren(parent)pursuantto whichDynegywill,amongotherthings,guaranteeIPH's indemnificationobligationsforaperiodofupto24months aftertheclosing(subjecttocertainexceptions).Asof December31,2013,Amerenprovided$190millionin guaranteesandlettersofcredittotaling$11millionrelating toitscreditsupportofNewAER.SeeNote16-Divestiture TransactionsandDiscontinuedOperationsunderPartII, Item8,ofthisreportforadditionalinformationregarding Ameren(parent)guaranteesandAmeren'stransaction agreementdivestingNewAERtoIPH.ImmediatelypriortothetransactionagreementclosingonDecember2,2013,thecashcollateralprovidedtoNew AERbyAmerenthroughmoneypoolborrowingswas convertedtoanotepayabletoAmeren,whichispayable, withinterest,24monthsafterclosingorsoonerascash collateralrequirementsarereduced.Thebalanceofthenote was$18millionatDecember31,2013;itwillvaryoverthe 24-monthperiodascashcollateralrequirementsforNew AERchange.Changesincommoditypricescouldtrigger additionalcollateralpostingsandprepaymentsforNewAER andthusaffectthebalanceofthenote.Ifmarketprices were15%higherthanDecember31,2013,levelsinthe next12monthsand20%higherthereafterthroughtheend ofthetermofthecommoditycontracts,thenAmerencould berequiredtoprovideadditionalcreditsupporttoIPHupto
$105million.Ifmarketpriceswere15%lowerthan December31,2013,levelsinthenext12monthsand20%
lowerthereafterthroughtheendofthetermofthe commoditycontracts,thenAmerencouldberequiredto provideIPHwithadditionalcreditsupportupto$43million.
OUTLOOKAmerenseekstoearncompetitivereturnsonitsinvestmentsinitsbusinesses.AmerenMissouriandAmerenIllinoisareseekingtoimprovetheirregulatory 59 frameworksandcostrecoverymechanismsandsimultaneouslypursuingconstructiveregulatoryoutcomes withinexistingframeworks.AmerenMissouriandAmeren Illinoisareseekingtoaligntheiroverallspending,both operatingandcapital,witheconomicconditionsandcash flowsprovidedbytheirregulators.Consequently,Ameren's rate-regulatedbusinessesarefocusedonminimizingthe gapbetweenallowedandearnedreturnsonequity.Ameren intendstoallocateitscapitalresourcestothosebusiness opportunitiesthatofferthemostattractiverisk-adjusted returnpotential.Belowaresomekeytrends,events,anduncertaintiesthatarereasonablylikelytoaffecttheAmerenCompanies' resultsofoperations,financialcondition,orliquidity,aswell astheirabilitytoachievestrategicandfinancialobjectives, for2014andbeyond.
Operations Ameren'sstrategyforearningcompetitivereturnsonitsrate-regulatedinvestmentsinvolvesmeeting customerenergyneedsinanefficientfashion,working toenhanceregulatoryframeworks,makingtimelyand well-supportedratecasefilings,andaligningoverall spendingwiththoseratecaseoutcomes,economic conditions,andreturnopportunities.
AmerencontinuestopursueitsplanstoinvestinFERC-regulatedelectrictransmission.MISOhasapproved threeelectrictransmissionprojectstobedevelopedby ATXI.Thefirstproject,IllinoisRivers,involvesthe constructionofa345-kilovoltlinefromwesternIndiana acrossthestateofIllinoistoeasternMissouri.ATXI obtainedacertificateofpublicconvenienceand necessityandprojectapprovalfromtheICCforthe entireIllinoisRiversproject.Afullrangeof constructionactivitiesisscheduledin2014.Thefirst sectionsoftheIllinoisRiversprojectareexpectedtobe completedin2016.Thelastsectionofthisprojectis expectedtobecompletedin2019.TheSpoonRiver projectinnorthwestIllinoisandtheMarkTwainproject innortheastMissouriaretheothertwoprojects approvedbyMISO.Thesetwoprojectsareexpectedto becompletedin2018.Thetotalinvestmentinthese threeprojectsisexpectedtobe$1.4billionthrough 2019.SeparatefromtheATXIprojectsdiscussed above,AmerenIllinoisexpectstoinvestapproximately
$850millioninelectrictransmissionassetsoverthe nextfiveyearstoaddressloadgrowthandreliability
requirements.
InJuly2013,IllinoisenactedtheNaturalGas Consumer,SafetyandReliabilityAct,whichencourages Illinoisnaturalgasutilitiestoacceleratemodernization ofthestate'snaturalgasinfrastructureandprovides additionalICCoversightofnaturalgasutility performance.Thelawallowsnaturalgasutilitiesthe optiontofilefor,andrequirestheICCtoapprove,arate ridermechanismtorecovercostsofcertainnaturalgas infrastructureinvestmentsmadebetweenratecases.
Thelawdoesnotrequireaminimumlevelof investment.AmerenIllinoisexpectstobeginincludinginvestmentsunderthisregulatoryframeworkin2015.
AmerenIllinois'decisiontoacceleratemodernizationof itsnaturalgasinfrastructureunderthisregulatory frameworkisdependentuponmultipleconsiderations, includingtheallowedreturnonequityunderthis frameworkcomparedwithotherAmerenandAmeren Illinoisinvestmentoptions.
TheIEIMAprovidesforanannualreconciliationofthe revenuerequirementnecessarytoreflecttheactual costsincurredinagivenyearwiththerevenue requirementthatwasineffectforcustomerbillingsfor thatyear.Consequently,AmerenIllinois'2014electric deliveryservicerevenueswillbebasedonits2014 actualrecoverablecosts,ratebase,andreturnon commonequityascalculatedundertheIEIMA's performance-basedformularatemakingframework.
The2014revenuerequirementisexpectedtobehigher thanthe2013revenuerequirement,duetoanexpected increaseinrecoverablecosts,ratebasegrowth,and expectedincreaseinthemonthlyaverageofUnited Statestreasurybonds.
InDecember2013,theICCissuedanorderwith respecttoAmerenIllinois'annualupdateIEIMAfiling.TheICCapprovedanet$45milliondecreaseinAmerenIllinois'electricdeliveryservicerates,whichrepresents anannualrevenuerequirementincreaseof$23million primarilyduetohigherrecoverablecostsin2012 comparedto2011,offsetbya$68millionrefundto customersrelatingtothe2012revenuerequirement reconciliation.TheICCdecisionissuedinDecember 2013establishednewratesthatbecameeffective January1,2014.TheserateswillaffectAmerenIllinois' cashflowsduring2014,butnotitsoperatingrevenues, whichwillinsteadbedeterminedbytheIEIMA's2014 revenuerequirementreconciliation.The2014revenue requirementreconciliationwillbereflectedasa regulatoryassetorliabilitythatwillbecollectedfromor refundedtocustomersin2016.
InDecember2013,theICCissuedanorderthat authorizeda$32millionincreaseinAmerenIllinois' annualnaturalgasdeliveryservicerevenues.This requestwasbasedonafuturetestyearof2014,which improvestheabilitytoearnreturnsallowedby regulators.ThenewratesbecameeffectiveJanuary1, 2014.OnFebruary13,2014,AmerenMissouri'slargest customer,Noranda,and37residentialcustomersfiled anearningscomplaintcaseandaratedesigncomplaint casewiththeMoPSC.Intheearningscomplaintcase, Norandaandtheresidentialcustomersassertedthat AmerenMissouri'selectricdeliveryservicebusinessis earningmorethanthe9.8%returnonequityauthorized intheMoPSC'sDecember2012electricrateorderand requestedtheMoPSCtoapproveareductionofthe authorizedreturnonequityto9.4%.Theratedesign complaintcaseseekstoreduceNoranda'selectricity costwithanoffsettingincreaseinelectricitycostfor AmerenMissouri'sothercustomers.Theratedesign complaintcaseaskstheMoPSCtoexpediteitsdecision andgrantreliefbyAugust1,2014.TheMoPSChasno 60 timerequirementbywhichitmustissueanorderinthesecases.AmerenMissouriopposesbothrequests filedbyNorandaandtheresidentialcustomersandwill vigorouslydefenditself.
Aswecontinuetoexperiencecostincreasesandmake infrastructureinvestments,AmerenMissouriand AmerenIllinoisexpecttoseekregularelectricandnatural gasrateincreasesandtimelycostrecoveryandtracking mechanismsfromtheirregulators.AmerenMissouri expectstofileanelectricserviceratecaseinJuly2014.
AmerenMissouriandAmerenIllinoiswillalsoseek,as necessary,legislativesolutionstoaddresscostrecovery pressuresandtosupportinvestmentintheirenergy infrastructure.Thesepressuresincludeaweakeconomy, customerconservationefforts,theimpactsofenergy efficiencyprograms,increasedinvestmentsandexpected futureinvestmentsforenvironmentalcompliance, systemreliabilityimprovements,andnewgeneration capacity,includingrenewableenergyrequirements.
Increasedinvestmentsalsoresultinhigherdepreciation andfinancingcosts.Increasedcostsarealsoexpected fromrisingemployeebenefitcosts,higherpropertyand incometaxes,andhigherinsurancepremiumsasaresult ofinsurancemarketconditionsandindustryloss experience,amongotherthings.
AmerenandAmerenMissourialsoarepursuing recoveryfrominsurers,throughlitigation,for reimbursementofunpaidliabilityinsuranceclaimsfora December2005breachoftheupperreservoirat AmerenMissouri'sTaumSaukpumped-storage hydroelectricenergycenter.Ameren'sandAmeren Missouri'sresultsofoperations,financialposition,and liquiditycouldbeadverselyaffectedifAmeren Missouri'sremainingliabilityinsuranceclaimsof
$68millionasofDecember31,2013,arenotpaidby
insurers.AmerenMissouri'snextscheduledrefuelingand maintenanceoutageatitsCallawayenergycenterwill beinthefallof2014.Duringascheduledoutage,which occursevery18months,maintenanceexpenses increaserelativetonon-outageyears.Additionally, dependingontheavailabilityofitsothergeneration sourcesandthemarketpricesforpower,Ameren Missouri'spurchasedpowercostsmayincreaseand theamountofexcesspoweravailableforsalemay decreaseversusnon-outageyears.Changesin purchasedpowercostsandexcesspoweravailablefor saleareincludedintheFAC,resultinginlimited impactstoearnings.Electricoperatingrevenuesin 2013didnotfullyoffsettheadditionalmaintenance costsincurredduringthe2013outage,because revenuesrelatingtotheadditionalmaintenancecosts arerecoveredover18months.
AmerenMissouricontinuestoevaluateitslonger-term needsfornewbaseloadandpeakingelectricgeneration
capacity.AsofDecember31,2013,AmerenMissourihad capitalized$69millionofcostsincurredtolicense additionalnucleargenerationatitsCallawayenergy site.Ifeffortsareabandonedormanagementconcludesitisprobablethecostsincurredwillbe disallowedinrates,achargetoearningswouldbe recognizedintheperiodinwhichthatdetermination wasmade.Environmentalregulations,aswellasfutureinitiatives, includingthoserelatedtogreenhousegasemissions, couldresultinsignificantincreasesincapital expendituresandoperatingcosts.Theseexpenses couldbeprohibitiveatsomeofAmerenMissouri's coal-firedenergycenters,particularlyatitsMeramec energycenter.AmerenMissouri'scapitalexpenditures aresubjecttoMoPSCprudencereviews,whichcould resultincostdisallowancesaswellasprolonged periodsbeforerecoveryoftheseinvestmentsoccur.
BothAmerenIllinoisandATXIhaveFERCauthorization toemployaforward-lookingratecalculationwithan annualrevenuerequirementreconciliationforeach company'selectrictransmissionbusiness.Withthe projectedratesthatbecameeffectiveonJanuary1, 2014,AmerenIllinois'2014revenuerequirementforits electrictransmissionbusinessisexpectedtoincrease by$15millionover2013levelsduetoratebase growth.Withtheprojectedratesthatbecameeffective onJanuary1,2014,ATXI's2014revenuerequirement foritselectrictransmissionbusinessisexpectedto increaseby$21millionover2013levelsduetorate basegrowth,primarilyrelatingtotheIllinoisRivers
project.InNovember2013,acustomergroupfiledacomplaint casewithFERCseekingareductionintheallowed returnoncommonequity,aswellasalimitonthe commonequityratio,undertheMISOtariff.Currently, theFERC-allowedreturnoncommonequityforMISO transmissionownersis12.38%.Thiscomplaintcase couldresultinareductiontoAmerenIllinois'and ATXI'sallowedreturnoncommonequity.That reductioncouldalsoresultinarefundfortransmission servicerevenuesearnedafterthefilingofthecomplaint caseinNovember2013.FERChasnotissuedanorder inthiscase,anditisundernodeadlinetodoso.
Foradditionalinformationregardingrecentrateorders andrelatedappeals,pendingrequestsfiledwithstate andfederalregulatorycommissions,TaumSauk matters,andseparateFERCordersaffectingAmeren MissouriandAmerenIllinois,seeNote2-Rateand RegulatoryMatters,Note10-CallawayEnergyCenter, andNote15-CommitmentsandContingenciesunder PartII,Item8,ofthisreport.LiquidityandCapitalResources TheAmerenCompaniesseektomaintainaccesstothecapitalmarketsatcommerciallyattractiveratesinorder tofundtheirbusinesses.TheAmerenCompaniesseek toenhanceregulatoryframeworksandreturnsinorder toimprovecashflows,creditmetrics,andrelated accesstocapitalforAmeren'srate-regulated
businesses.
Theuseofoperatingcashflowsandshort-term borrowingstofundcapitalexpendituresandotherlong-terminvestmentsmayperiodicallyresultinaworking 61 capitaldeficit,asdefinedbycurrentliabilitiesexceedingcurrentassets,aswasthecaseatDecember31,2013.
TheworkingcapitaldeficitasofDecember31,2013, wasprimarilytheresultofcurrentmaturitiesoflong-termdebt.Amereniscurrentlyevaluatingrefinancing optionsforthesecurrentmaturitiesincluding,inpart, throughtheissuanceoflong-termnotes.Inaddition, Amerenhad$368millionofcommercialpaperissuancesoutstandingasofDecember31,2013.Withthe2012CreditAgreements,Amerenhasaccessto
$2.1billionofcreditcapacityofwhich$1.7billionwas availableatDecember31,2013.
InMay2014,$425millionofAmeren's8.875%senior unsecurednotesand$104millionofAmeren Missouri's5.50%seniorsecurednoteswillmature.
Amerenexpectstorefinanceitsparentcompanydebtat alowerinterestrate,whichwillreduceitsinterest
expense.Amerenexpectsitscashusedforcapitalexpenditures anddividendstoexceedcashprovidedbyoperating activitiesoverthenextfewyears.
AsofDecember31,2013,Amerenhad$408millionin taxbenefitsfromfederalandstatenetoperatingloss carryforwards(AmerenMissouri-$64millionand AmerenIllinois-$95million)and$118millionin federalandstateincometaxcreditcarryforwards (AmerenMissouri-$12millionandAmerenIllinois-none).Consistentwiththetaxallocationagreement betweenAmerenanditssubsidiaries,these carryforwardsareexpectedtopartiallyoffsetincome taxliabilitiesin2014forAmerenMissouriandfor AmerenandAmerenIllinoisinto2016.Inaddition, Amerenhas$85millionofexpectedincometaxrefunds andstateoverpaymentsthatwilloffsetincometax liabilitiesinto2016.Thesetaxbenefits,primarilyatthe Ameren(parent)level,whenrealized,willbeavailable tofinanceelectrictransmissioninvestments, specificallyATXI'sIllinoisRiversproject.Thesetax benefitsareprojectedtoreduceoreliminateAmeren's needtoissueadditionalequitytofundthese investmentsoverthenextfewyears.
InDecember2011,theIRSissuednewguidanceonthe treatmentofamountspaidtoacquire,produce,or improvetangiblepropertyanddispositionsofsuch propertywithrespecttoelectrictransmission, distribution,andgenerationassetsaswellasnatural gastransmissionanddistributionassets.Final regulationsrelatedtothisguidancewereissuedin September2013.Basedonapreliminaryevaluationof thenewguidance,Amerenexpectstouse$40million (AmerenMissouri-$24millionandAmerenIllinois-
$16million)infederalincometaxnetoperatingloss carryforwardbenefitstooffsettaxliabilitiesrelatedto theaccountingmethodchangethatAmerenexpectsto filewiththeIRSin2014inconnectionwiththisnew
guidance.InNovember2012,theAmerenCompaniesenteredinto multiyearcreditagreementsthatcumulativelyprovide
$2.1billionofcreditthroughNovember14,2017.See Note4-Short-termDebtandLiquidityunderPartII, Item8,ofthisreportforadditionalinformation regardingthe2012CreditAgreements.Ameren, AmerenMissouri,andAmerenIllinoisbelievethattheir liquidityisadequategiventheirexpectedoperating cashflows,capitalexpenditures,andrelatedfinancing plans.However,therecanbenoassurancethat significantchangesineconomicconditions,disruptions inthecapitalandcreditmarkets,orotherunforeseen eventswillnotmateriallyaffecttheirabilitytoexecute theirexpectedoperating,capital,orfinancingplans.Theaboveitemscouldhaveamaterialimpactonourresultsofoperations,financialposition,orliquidity.
Additionally,intheordinarycourseofbusiness,weevaluate strategiestoenhanceourresultsofoperations,financial position,orliquidity.Thesestrategiesmayinclude acquisitions,divestitures,andopportunitiestoreducecosts orincreaserevenues,andotherstrategicinitiativesto increaseAmeren'sstockholdervalue.Weareunableto predictwhich,ifany,oftheseinitiativeswillbeexecuted.
Theexecutionoftheseinitiativesmayhaveamaterial impactonourfutureresultsofoperations,financial position,orliquidity.REGULATORYMATTERSSeeNote2-RateandRegulatoryMattersunderPartII,Item8,ofthisreport.ACCOUNTINGMATTERSCriticalAccountingEstimatesPreparationofthefinancialstatementsandrelateddisclosuresincompliancewithGAAPrequirestheapplicationofappropriatetechnicalaccountingrulesandguidance,aswellastheuseofestimates.Theseestimatesinvolvejudgmentsregardingmanyfactorsthatinandofthemselvescouldmateriallyaffectthefinancialstatementsanddisclosures.Wehaveoutlinedbelowthecriticalaccountingestimatesthatwebelievearemostdifficult,subjective,orcomplex.Anychangeinthe assumptionsorjudgmentsappliedindeterminingthefollowingmatters,amongothers,couldhaveamaterialimpactonfuture financialresults.
62 AccountingEstimateUncertaintiesAffectingApplicationRegulatoryMechanismsandCostRecoveryTheAmerenCompaniesdefercostsinaccordancewithauthoritativeaccountingguidance,andmakeinvestments thattheyassumewillbecollectedinfuturerates.
Regulatoryenvironmentandexternalregulatory decisionsandrequirements Anticipatedfutureregulatorydecisionsandour assessmentoftheirimpact Impactofderegulation,ratefreezes,prudencyreviews, andoppositionduringtheratemakingprocessthatmay limitourabilitytotimelyrecovercosts AmerenIllinois'assessmentofandabilitytoestimate thecurrentyear'selectricdeliveryservicecoststobe reflectedinrevenuesandrecoveredfromcustomersin asubsequentyearundertheIEIMAperformance-based formularatemakingprocess AmerenIllinois'andATXI'sassessmentofandabilityto estimatethecurrentyear'selectrictransmissionservice coststobereflectedinrevenuesandrecoveredfrom customersinasubsequentyearundertheFERC ratemakingprocess EstimateofrevenuerecoveryfromMEEIABasisforJudgment Wedeterminewhichcostsarerecoverablebyreviewingpreviousrulingsbyregulatoryauthoritiesinjurisdictionswherewe operateandanyotherfactorsthatmayindicatewhethercostrecoveryisprobable.Iffactsandcircumstancesleadusto concludethatarecordedregulatoryassetisnolongerprobableofrecoveryorthatplantassetsareprobableofdisallowance, werecordachargetoearnings,whichcouldbematerial.AmerenIllinoisestimatesitsannualrevenuerequirementpursuant totheIEIMAforinterimperiodsbyusinginternalforecastedinformation,suchasprojectedoperationsandmaintenance expenses,depreciationexpense,taxesotherthanincometaxes,andratebase,aswellaspublishedforecasteddataregarding thatyear'smonthlyaverageyieldsofthe30-yearUnitedStatestreasurybonds.AmerenIllinoisestimatesitsannualrevenue requirementasofDecember31ofeachyearusingthatyear'sactualoperatingresultsandassessestheprobabilityof recoveryoforrefundtocustomersthattheICCwillorderattheendofthefollowingyear.Variationsincostsincurred, investmentsmade,orordersbytheICCorcourtscanresultinasubsequentchangeinAmerenIllinois'estimate.Ameren IllinoisandATXIfollowasimilarprocessfortheirFERCelectrictransmissionbusinesses.SeeNote2-RateandRegulatory MattersunderPartII,Item8,ofthisreportforquantificationoftheseassetsforeachoftheAmerenCompanies.BenefitPlanAccountingBasedonactuarialcalculations,weaccruecostsof providingfutureemployeebenefitsinaccordancewith authoritativeaccountingguidanceregardingbenefit plans.SeeNote11-RetirementBenefitsunderPartII, Item8,ofthisreport.
Futurerateofreturnonpensionandotherplanassets Valuationinputsandassumptionsusedinthefairvalue measurementsofplanassetsexcludingthoseinputs thatarereadilyobservable Interestratesusedinvaluingbenefitobligations Healthcarecosttrendrates Timingofemployeeretirementsandmortality
assumptions Abilitytorecovercertainbenefitplancostsfromour
ratepayers Changingmarketconditionsthatmayaffectinvestment andinterestrateenvironments Impactsofthehealthcarereformlegislationenactedin
2010BasisforJudgment Ourultimateselectionofthediscountrate,healthcaretrendrate,andexpectedrateofreturnonpensionandother postretirementbenefitplanassetsisbasedonourconsistentapplicationofassumption-settingmethodologiesandour reviewofavailablehistorical,current,andprojectedrates,asapplicable.SeeNote11-RetirementBenefitsunderPartII,Item8,ofthisreportforsensitivityofAmeren'sbenefitplanstopotentialchangesintheseassumptions.
63 AccountingEstimateUncertaintiesAffectingApplicationAccountingforContingenciesWemakejudgmentsandestimatesinrecordinganddisclosingliabilitiesforclaims,litigation,environmental remediation,theactionsofvariousregulatoryagencies,or othermattersthatoccurinthenormalcourseofbusiness.
Werecordalosscontingencywhenitisprobablethata liabilityhasbeenincurredandtheamountofthelosscan bereasonablyestimated.Againcontingencyisnot recordeduntilrealizedorrealizable.
Estimatingfinancialimpactofevents Estimatinglikelihoodofvariouspotentialoutcomes Regulatoryandpoliticalenvironmentsand
requirements Outcomeoflegalproceedings,settlements,orother
factorsChangesinregulation,expectedscopeofwork, technologyortimingofenvironmentalremediationBasisforJudgment Thedeterminationofalosscontingencyrequiressignificantjudgmentastotheexpectedoutcomeofeachcontingencyin futureperiods.Inmakingthedeterminationastotheamountofpotentiallossandtheprobabilityofloss,weconsiderall availableevidenceincludingtheexpectedoutcomeofpotentiallitigation.Ifnoestimateisbetterthananotherwithinour rangeofestimates,werecordasourbestestimateofalosstheminimumvalueofourestimatedrangeofoutcomes.Asadditionalinformationbecomesavailable,wereassessthepotentialliabilityrelatedtothecontingencyandreviseour estimates.Inourevaluationoflegalmatters,managementconsultswithlegalcounselandreliesonanalysisofrelevantcase lawandlegalprecedents.SeeNote2-RateandRegulatoryMatters,Note10-CallawayEnergyCenter,Note15-CommitmentsandContingencies,andNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8, ofthisreportforinformationontheAmerenCompanies'contingencies.AccountingforIncomeTaxesBasedonauthoritativeaccountingguidance,werecord theprovisionforincometaxes,deferredtaxassetsand liabilities,andavaluationallowanceagainstnetdeferred taxassets,ifany.SeeNote13-IncomeTaxesunderPart II,Item8,ofthisreport.
Changesinbusiness,industry,laws,technology,or economicandmarketconditionsaffectingforecasted financialconditionand/orresultsofoperations Estimatesoftheamountandcharacteroffuturetaxable
incomeEnactedtaxratesapplicabletotaxableincomeinyears inwhichtemporarydifferencesarerecoveredorsettled Effectivenessofimplementingtaxplanningstrategies Changesinincometaxlaws Resultsofauditsandexaminationsoffiledtaxreturns bytaxingauthoritiesBasisforJudgment Thereportingoftax-relatedassetsrequirestheuseofestimatesandsignificantmanagementjudgment.Deferredtaxassets arerecordedrepresentingfutureeffectsonincometaxesfortemporarydifferencesbetweenthebasesofassetsforfinancial reportingandtaxpurposes.Althoughmanagementbelievesthatcurrentestimatesfordeferredtaxassetsarereasonable, actualresultscoulddifferfromtheseestimatesforavarietyofreasonsincludingchangeinforecastedfinancialcondition and/orresultsofoperations,changeinincometaxlawsorenactedtaxrates,theform,structure,andtimingofassetorstock salesordispositions,andresultsofauditsandexaminationsoffiledtaxreturnsbytaxingauthorities.Valuationallowances againstdeferredtaxassetsarerecordedwhenmanagementconcludesitismorelikelythannotsuchassetwillnotbe realizedinfutureperiods.Accountingforincometaxesalsorequiresthatonlytaxbenefitsforpositionstakenorexpectedto betakenontaxreturnsthatmeetthemore-likely-than-notrecognitionthresholdcanberecognizedorcontinuetobe recognized.Managementevaluateseachpositionsolelyonthetechnicalmeritsandfactsandcircumstancesoftheposition, assumingthatthepositionwillbeexaminedbyataxingauthoritythathasfullknowledgeofallrelevantinformation.
Significantjudgmentisrequiredtodeterminerecognitionthresholdsandtherelatedamountoftaxbenefitstoberecognized.
Ateachperiod-end,andasnewdevelopmentsoccur,managementreevaluatesitstaxpositions.SeeNote13-IncomeTaxes underPartII,Item8,ofthisreportfortheamountofdeferredtaxassetsanduncertaintaxpositionsrecordedat December31,2013.
64 AccountingEstimateUncertaintiesAffectingApplicationUnbilledRevenueAttheendofeachperiod,Ameren,AmerenMissouri,andAmerenIllinoisprojectexpectedusageandestimatethe amountofrevenuetorecordforservicesthathavebeen providedtocustomersbutnotyetbilled.
Projectingcustomerenergyusage Estimatingimpactsofweatherandotherusage-affectingfactorsfortheunbilledperiod Estimatinglossofenergyduringtransmissionand
deliveryBasisforJudgment Webaseourestimateofunbilledrevenueeachperiodonthevolumeofenergydelivered,asvaluedbyamodelofbilling cyclesandhistoricalusageratesandgrowthorcontractionbycustomerclassforourservicearea.Thisfigureisthen adjustedforthemodeledimpactofseasonalandweathervariationsbasedonhistoricalresults.Seethebalancesheetsfor eachoftheAmerenCompaniesunderPartII,Item8,ofthisreportforunbilledrevenueamounts.ImpactofFutureAccountingPronouncementsSeeNote1-SummaryofSignificantAccountingPoliciesunderPartII,Item8,ofthisreport.EFFECTSOFINFLATIONANDCHANGINGPRICESAmeren'sratesforretailelectricandnaturalgasutilityserviceareregulatedbytheMoPSCandtheICC.Nonretail electricratesareregulatedbyFERC.Rateregulationis generallybasedontherecoveryofhistoricalorprojected costs.Asaresult,revenueincreasescouldlagbehind changingprices.AmerenIllinoiselectedtoparticipateinthe performance-basedformularatemakingprocesspursuant totheIEIMAforitselectricdeliveryservicebusiness.
AmerenIllinois'participationinthisformularatemaking processwillterminateiftheaverageresidentialrate increasesbymorethan2.5%annuallyfromJune2011 throughMay2014.Theaverageresidentialrateincludes generationservice,whichisoutsideofAmerenIllinois' control.AmerenIllinoisisrequiredtopurchaseallofits powerthroughprocurementprocessesadministeredbythe IPA.Thecostofprocuredpowercanbeaffectedby inflation.WithintheIEIMAformula,themonthlyaverage yieldsof30-yearUnitedStatestreasurybondsarethebasis forAmerenIllinois'returnonequity.Therefore,thereisa directcorrelationbetweentheyieldofUnitedStates treasurybonds,whichareaffectedbyinflation,andthe earningsofAmerenIllinois'electricdistributionbusiness.
Inflationaffectsouroperations,earnings,stockholders' equity,andfinancialperformance.Thecurrentreplacementcostofourutilityplantsubstantiallyexceedsourrecordedhistoricalcost.Under existingregulatorypractice,onlythehistoricalcostofplantis recoverablefromcustomers.Asaresult,cashflowsdesigned toproviderecoveryofhistoricalcoststhroughdepreciation mightnotbeadequatetoreplaceplantinfutureyears.AmerenMissourirecoversthecostoffuelforelectricgenerationandthecostofpurchasedpowerbyadjusting ratesasallowedthroughtheFAC.AmerenIllinoisrecovers powersupplycostsfromelectriccustomersbyadjusting ratesthrougharidermechanismtoaccommodatechanges inpowerprices.AmerenMissouri,AmerenIllinoisandATXIareaffectedbychangesinthecostofelectrictransmissionservices.FERCregulatestherateschargedandtheterms andconditionsforelectricwholesaleandunbundledretail transmissionservices.BecausetheyaremembersofMISO, AmerenMissouri's,AmerenIllinois'andATXI's transmissionratesarecalculatedinaccordancewiththe rateformulascontainedinMISO'sFERC-approvedtariff.
UndertheMISOOATT,aportionoftherevenue requirementrelatedtocertainprojectseligibleforcost sharingisallocatedtomultipleMISOpricingzones.The remainingrevenuerequirementisassignedtothepricing zonewherethetransmissionassetsarelocated.Ameren MissouriusesarateformulathatisupdatedinJuneofeach year.Itisbasedontheprioryear'scostdata.TheAmeren Missourizonalrateischargedtowholesalecustomersin theAMMOpricingzone.Thiszonalrateisnotdirectly chargedtoMissouriretailcustomers,becausetheMoPSC includestransmission-relatedcostsinsettingbundledretail ratesinMissouri.AmerenIllinoisandATXIhavereceived FERCapprovaltousecompany-specific,forward-looking rateformulatemplatesinsettingtheirtransmissionrates.
Theseforward-lookingratesareupdatedeachJanuarywith forecastedinformation,withasubsequentreconciliation duringtheyeartoadjustfortheactualrevenuerequirement andactualbilledrevenues,whichwillbeusedtoadjust billingratesinasubsequentyear.InIllinois,theAMIL pricingzonerateischargeddirectlytowholesalecustomers andalternativeretailelectricsuppliersthatserveunbundled retailload.ForthoseAmerenIllinoisretailcustomersthat donotchooseanalternativeretailelectricsupplier,the AMILtransmissionrate,aswellasotherMISO-related transmissioncosts,iscollectedthroughtheretail transmissionserviceridermechanism.InourMissouriandIllinoisretailnaturalgasutilityjurisdictions,changesinnaturalgascostsaregenerally reflectedinbillingstonaturalgascustomersthroughPGA
clauses.SeeNote2-RateandRegulatoryMattersunderPartII,Item8,ofthisreportforadditionalinformationonthe costrecoverymechanisms.
65 ITEM7A.QUANTITATIVEANDQUALITATIVEDISCLOSURESABOUTMARKETRISKMarketriskistheriskofchangesinvalueofaphysicalassetorafinancialinstrument,derivativeornonderivative,causedbyfluctuationsinmarketvariablessuchasinterest rates,commodityprices,andequitysecurityprices.A derivativeisacontractwhosevalueisdependenton,or derivedfrom,thevalueofsomeunderlyingassetorindex.
Thefollowingdiscussionofourriskmanagementactivities includesforward-lookingstatementsthatinvolverisksand uncertainties.Actualresultscoulddiffermateriallyfrom thoseprojectedintheforward-lookingstatements.We handlemarketrisksinaccordancewithestablishedpolicies, whichmayincludeenteringintovariousderivativetransactions.Inthenormalcourseofbusiness,wealsoface risksthatareeithernonfinancialornonquantifiable.Such risks,principallybusiness,legal,andoperationalrisks,are notpartofthefollowingdiscussion.Ourriskmanagementobjectivesaretooptimizeourphysicalgeneratingassetsandtopursuemarketopportunitieswithinprudentriskparameters.Ourrisk managementpoliciesaresetbyariskmanagementsteering committee,whichiscomposedofsenior-levelAmeren officers,withAmerenboardofdirectorsoversight.InterestRateRiskWeareexposedtomarketriskthroughchangesininterestratesassociatedwith:
long-termandshort-termvariable-ratedebt; fixed-ratedebt; auction-ratelong-termdebt;and definedpensionandpostretirementbenefitplans.Wemanageourinterestrateexposurebycontrollingtheamountofdebtinstrumentswithinourtotalcapitalizationportfolioandbymonitoringtheeffectsof marketchangesoninterestrates.Fordefinedpensionand postretirementbenefitplans,wecontrolthedurationand theportfoliomixofourplanassets.Thefollowingtablepresentstheestimatedincreaseinourannualinterestexpenseanddecreaseinnetincomeif interestratesweretoincreaseby1%onvariable-ratedebt outstandingatDecember31,2013:InterestExpenseNetIncome (a)Ameren..................$6$(4)AmerenMissouri..........2(1)AmerenIllinois
............(b)(b)(a)Calculationsarebasedonanestimatedtaxrateof38%,38%and40%forAmeren,AmerenMissouriandAmerenIllinois, respectively.(b)Lessthan$1million.CreditRiskCreditriskrepresentsthelossthatwouldberecognizedifcounterpartiesshouldfailtoperformascontracted.Exchange-tradedcontractsaresupportedbythe financialandcreditqualityoftheclearingmembersofthe respectiveexchangesandhavenominalcreditrisk.Inall othertransactions,weareexposedtocreditriskinthe eventofnonperformancebythecounterpartiestothe transaction.SeeNote7-DerivativeFinancialInstruments underPartII,Item8,ofthisreportforinformationonthe potentiallossoncounterpartyexposureasofDecember31, 2013.Ourrate-regulatedrevenuesareprimarilyderivedfromsalesordeliveryofelectricityandnaturalgastocustomers inMissouriandIllinois.Ourphysicalandfinancial instrumentsaresubjecttocreditriskconsistingoftrade accountsreceivablesandexecutorycontractswithmarket riskexposures.Theriskassociatedwithtradereceivablesis mitigatedbythelargenumberofcustomersinabroad rangeofindustrygroupswhomakeupourcustomerbase.
AtDecember31,2013,nononaffiliatedcustomer representedmorethan10%,intheaggregate,ofour accountsreceivable.Additionally,AmerenIllinoishasrisk associatedwiththepurchaseofreceivables.TheIllinois PublicUtilitiesActrequiresAmerenIllinoistoestablish electricutilityconsolidatedbillingandpurchaseof receivablesservices.Attheoptionofanalternativeretail electricsupplier,AmerenIllinoisisrequiredtopurchasethe supplier'sreceivablesrelatingtoAmerenIllinois'delivery servicecustomerswhoelectedtoreceivepowersupply fromthealternativeretailelectricsupplier.Whenthatoption isselected,AmerenIllinoisproducesconsolidatedbillsfor theapplicableretailcustomersreflectingchargesfor electricdeliveryserviceandpurchasedreceivables.Asof December31,2013,AmerenIllinois'balanceofpurchased accountsreceivableassociatedwiththeutilityconsolidated billingandpurchaseofreceivablesserviceswas
$26million.TheriskassociatedwithAmerenIllinois' electricandnaturalgastradereceivablesisalsomitigated byarateadjustmentmechanismthatallowsAmerenIllinois torecoverthedifferencebetweenitsactualnetbaddebt write-offsunderGAAPandtheamountofnetbaddebt write-offsincludedinitsbaserates.AmerenMissouriand AmerenIllinoiscontinuetomonitortheimpactofincreasing ratesoncustomercollections.AmerenMissouriand AmerenIllinoismakeadjustmentstotheirrespective allowancefordoubtfulaccountsasdeemednecessaryto ensurethatsuchallowancesareadequatetocover estimateduncollectiblecustomeraccountbalances.Ameren,AmerenMissouriandAmerenIllinoismayhavecreditexposureassociatedwithoff-systemor wholesalepurchaseandsaleactivitywithnonaffiliated companies.AtDecember31,2013,Ameren'sandAmeren Missouri'scombinedcreditexposuretononaffiliated tradingcounterpartiesdeemedbelowinvestmentgrade eitherthroughexternalorinternalcreditevaluations,netof collateral,waslessthan$1million(2012-$2million).
66 Weestablishcreditlimitsforthesecounterpartiesandmonitortheappropriatenessoftheselimitsonanongoingbasisthroughacreditriskmanagementprogram.
Monitoringinvolvesdailyexposurereportingtosenior management,mastertradingandnettingagreements,and creditsupport,suchaslettersofcreditandparental guarantees.Wealsoanalyzeeachcounterparty'sfinancial conditionbeforeweenterintosales,forwards,swaps, futures,oroptioncontracts.OnDecember2,2013,AmerencompletedthedivestitureofNewAERtoIPH.Thetransactionagreement betweenAmerenandIPHrequiresAmeren,forupto24 monthsaftertheclosingofthedivestitureofNewAER,to maintainitsfinancialobligationsinexistenceasofthedate oftheclosingunderallcreditsupportarrangementsor obligationswithrespecttoNewAERanditssubsidiaries.
Amerenmustalsoprovideanyadditionalcreditsupportthat maybecontractuallyrequiredpursuanttoanyofthe contractsofNewAER,anditssubsidiariesasoftheclosing.
IPH,NewAERanditssubsidiariesandDynegyhaveagreed toindemnifyAmerenforcertainlossesrelatingtothiscredit support.IPH'sindemnificationobligationsaresecuredby certainAERGandGencoassets.However,theseindemnificationobligationsandsecurityinterestsmightnotcoveralllossesincurredbyAmereninconnectionwiththis creditsupport.Inaddition,Dynegyemergedfromits Chapter11bankruptcycaseonOctober1,2012,and,asof December31,2013,Dynegy'screditratingsweresub-investmentgrade.IPH,NewAERanditssubsidiariesalso donothaveinvestmentgradecreditratings.Dynegy,IPH, NewAER,ortheirsubsidiariesmightnotbeabletopay theirindemnityandotherobligationsunderthetransaction agreement,MarketingCompany'snotetoAmeren,or Dynegy'slimitedguaranteetoAmeren,whichcouldhavea materialadverseimpactonAmeren'sresultsofoperations, financialposition,andliquidity.AsofDecember31,2013, thebalanceoftheMarketingCompanynotetoAmerenwas
$18million.AsofDecember31,2013,Amerenprovided
$190millioninguaranteesandlettersofcredittotaling$11 millionrelatingtoitscreditsupportofNewAER.EquityPriceRiskOurcostsforprovidingdefinedbenefitretirementandpostretirementbenefitplansaredependentuponanumberoffactors,includingtherateofreturnonplanassets.
Amerenmanagesplanassetsinaccordancewiththe "prudentinvestor"guidelinescontainedinERISA.Ameren's goalistoensurethatsufficientfundsareavailableto providebenefitsatthetimetheyarepayablewhilealso maximizingtotalreturnonplanassetsandminimizing expensevolatilityconsistentwithitstoleranceforrisk.
Amerendelegatesinvestmentmanagementtospecialists.
Whereappropriate,Amerenprovidestheinvestment managerwithguidelinesthatspecifyallowableand prohibitedinvestmenttypes.Amerenregularlymonitors managerperformanceandcompliancewithinvestment
guidelines.Theexpectedreturnonplanassetsisbasedonhistoricalandprojectedratesofreturnforcurrentand plannedassetclassesintheinvestmentportfolio.Projected ratesofreturnforeachassetclassareestimatedafteran analysisofhistoricalexperience,futureexpectations,and thevolatilityofthevariousassetclasses.Afterconsidering thetargetassetallocationforeachassetclass,weadjust theoverallexpectedrateofreturnfortheportfoliofor historicalandexpectedexperienceofactiveportfolio managementresultscomparedwithbenchmarkreturns, andfortheeffectofexpensespaidfromplanassets.Infutureyears,thecostsofsuchplanswillbereflectedinnetincome,orregulatoryassets.Contributionstothe planscouldincreasemateriallyifwedonotachievepension andpostretirementassetportfolioinvestmentreturnsequal toorinexcessofour2014assumedreturnonplanassets of7.25%and7.00%,respectively.AmerenMissourialsomaintainsatrustfund,asrequiredbytheNRCandMissourilaw,tofundcertaincosts ofnuclearplantdecommissioning.AsofDecember31, 2013,thisfundwasinvestedindomesticequitysecurities (68%)anddebtsecurities(32%).AsofDecember31,2013, thetrustfundtotaled$494million(2012-$408million).By maintainingaportfoliothatincludeslong-termequity investments,AmerenMissouriseekstomaximizethereturns tobeusedtofundnucleardecommissioningcostswithin acceptableparametersofrisk.However,theequitysecuritiesincludedintheportfolioareexposedtopricefluctuationsin equitymarkets.Thedebtsecuritiesareexposedtochanges ininterestrates.AmerenMissouriactivelymonitorsthe portfoliobybenchmarkingtheperformanceofits investmentsagainstcertainindicesandbymaintainingand periodicallyreviewingestablishedtargetallocation percentagesoftheassetsofthetrusttovariousinvestment options.AmerenMissouri'sexposuretoequitypricemarket riskisinlargepartmitigatedbecauseAmerenMissouriis currentlyallowedtorecoveritsdecommissioningcosts, whichwouldincludeunfavorableinvestmentresults,through electricrates.Additionally,Amerenhascompany-ownedlifeinsurancecontractsthatareusedtosupportAmeren's deferredcompensationplans.Theselifeinsurancecontracts includeequityanddebtinvestmentsthatareexposedto pricefluctuationsinequitymarketsandtochangesin interestrates.CommodityPriceRiskWithregardtoAmerenMissouri'sandAmerenIllinois'electricandnaturalgasdistributionbusinesses,exposuretochangingmarketpricesisinlargepartmitigatedbythefact thattherearecostrecoverymechanismsinplace.Thesecost recoverymechanismsallowAmerenMissouriandAmeren Illinoistopassontoretailcustomersprudentlyincurred costsforfuel,purchasedpower,andnaturalgassupply.AmerenMissouri'sandAmerenIllinois'strategyisdesignedtoreducetheeffectofmarketfluctuationsfortheir regulatedcustomers.Theeffectsofpricevolatilitycannot 67 beeliminated.However,procurementstrategiesinvolveriskmanagementtechniquesandinstruments,aswellasthe managementofphysicalassets.AmerenMissourihasaFACthatallowsittorecover,throughcustomerrates,95%ofchangesinfuel,certain fueladditives,emissionallowances,purchasedpower costs,transmissioncostsandrevenues,andMISOcosts andrevenues,netofoff-systemsalesrevenues,greateror lessthantheamountsetinbaserates,withoutatraditional rateproceeding,subjecttoMoPSCprudencyreview.
AmerenMissouriremainsexposedtotheremaining5%of suchchanges.EvenwiththeFAC,AmerenMissourientersintoderivativecontractstohedgepricesofelectricity,coaland coaltransportationforitscustomersasdiscussedabove.AmerenMissourialsoattemptstomitigatefinancialrisksthroughriskmanagementprogramsandpolicies,which includeforward-hedgingprograms,andtheuseofderivative financialinstruments(primarilyforwardcontracts,futures contracts,optioncontracts,andfinancialswapcontracts).
However,aportionofthegenerationcapacityofAmeren Missouriisnotcontractedthroughphysicalorfinancial hedgearrangementsandisthereforeexposedtovolatilityin marketprices.Ifpowerpricesweretodecreaseby1%on unhedgedeconomicgenerationfor2014through2018, AmerenMissouriearningswoulddecreasebylessthan
$1million,basedonan36%effectivetaxrate.AmerenIllinoishasacostrecoverymechanismforpowerpurchasedonbehalfofitscustomers.Ameren Illinoisdoesnotgenerateearningsbasedontheresaleof powerbutratheronthedeliveryofenergy.AmerenIllinois primarilypurchasespowerthroughMISOwithadditional procurementeventsadministeredbytheIPA.TheIPAhas proposedandtheICChasapprovedmultipleenergy procurementeventscoveringportionsofyearsthrough 2017.Bytheendof2013,approximately768,000retail customers,representing72%ofAmerenIllinois'annual retailkilowatthoursales,hadelectedtopurchasetheir electricityfromanalternativeretailelectricsupplier.The percentageofretailcustomers,especiallyresidential customers,whoelectedtopurchasepowerfromadifferent providerthanAmerenIllinoisincreasedsubstantiallyover thelasttwoyears.Forperiodswhereexistingpower purchasesthroughtheIPAexceedthedemandfor customerstakingpowerfromAmerenIllinois,theIPAhas proposed,andtheICChasapproved,thatexcess purchaseswillsettleintheMISOmarket,thusresultingin acredittocustomerswhotakesupplyfromAmerenIllinois fixed-pricetariffs.AmerenIllinoisexpectsfullrecoveryof itspurchasedpowercosts.AmerenMissouriandAmerenIllinoishavePGAclausesthatpermitcostsincurredfornaturalgastobe recovereddirectlyfromutilitycustomerswithouta traditionalrateproceeding,subjecttoprudencyreview.Thefollowingtablepresents,asofDecember31,2013,thepercentagesoftheprojectedrequiredsupplyofcoalandcoaltransportationforAmerenMissouri'scoal-firedenergycenters,nuclearfuelforAmerenMissouri'sCallawayenergycenter,naturalgasforAmerenMissouri'sCTsandretaildistribution,asappropriate,andpurchasedpowerforAmerenIllinois,which doesnotowngeneration,thatareprice-hedgedovertheperiod2014through2018.Theprojectedrequiredsupplyofthese commoditiescouldbesignificantlyaffectedbychangesinourassumptionsaboutcustomerdemandforourelectricgeneration andourelectricandnaturalgasdistributionservices,generationoutput,andinventorylevels,amongothermatters.201420152016-2018 Ameren (a): Coal.............................................................................100%100%70%Coaltransportation.................................................................10010065Nuclearfuel.......................................................................10010066Naturalgasforgeneration............................................................27223Naturalgasfordistribution (b)..........................................................7827 7PurchasedpowerforAmerenIllinois (c)..................................................1008520AmerenMissouri:
Coal.............................................................................100%100%70%Coaltransportation.................................................................10010065Nuclearfuel.......................................................................10010066Naturalgasforgeneration............................................................27223Naturalgasfordistribution (b)..........................................................842918AmerenIllinois:
...................................................................Naturalgasfordistribution (b)..........................................................77%26%5%Purchasedpower (c).................................................................1008520(a)Includesintercompanyeliminations.
(b)Representsthepercentageofnaturalgasprice-hedgedforpeakwinterseasonofNovemberthroughMarch.Theyear2014representsJanuary2014throughMarch2014.Theyear2015representsNovember2014throughMarch2015.Thiscontinueseachsuccessiveyearthrough March2018.(c)Representsthepercentageofpurchasedpowerprice-hedgedforfixed-priceresidentialandsmallcommercialcustomerswithlessthanonemegawattofdemand.
68 Withregardtoourexposureforcommoditypriceriskforconstructionandmaintenanceactivities,Amerenisexposedtochangesinmarketpricesformetalcommodities andtolaboravailability.SeeTransmissionandSupplyofElectricPowerunderPartI,Item1,ofthisreportforthepercentagesofour historicalneedssatisfiedbycoal,nuclearpower,natural gas,hydroelectricpower,andoil.AlsoseeNote15-CommitmentsandContingenciesunderPartII,Item8,of thisreportforadditionalinformation.CommoditySupplierRiskTheuseofultra-low-sulfurcoalispartofAmerenMissouri'senvironmentalcompliancestrategy.AmerenMissourihasamultiyearagreementtopurchaseultra-low-sulfurcoalthrough2017tocomplywithenvironmental regulations.Thecoalcontractiswithasinglesupplier.
Disruptionsofthedeliveriesofthatultra-low-sulfurcoal fromthesuppliercouldcompromiseAmerenMissouri'sabilitytooperateincompliancewithemissionstandards.
Othersourcesofultra-low-sulfurcoalarelimited,andthe constructionofpollutioncontrolequipmentrequires significantleadtimeifAmerenMissouriweretoexperience atemporarydisruptionofultra-low-sulfurcoaldeliveries thatcausedittoexhaustitsexistinginventory,andifother sourcesofultra-low-sulfurcoalwerenotavailable,Ameren Missouriwoulduseitsexistingemissionallowancesor purchaseemissionallowancestoachievecompliancewith environmentalregulations.Currently,theCallawayenergycenterusesnuclearfuelassembliesofadesignfabricatedbyonlyasinglesupplier.
ThatsupplieriscurrentlytheonlyNRC-licensedsupplier abletoprovideassembliestotheCallawayenergycenter.If AmerenMissouriwoulddecidetochangesuppliersor changethetypeoffuelassemblydesigntheCallaway energycenteruses,itcouldtakeupto3yearsofanalysis andlicensingefforttobeinapositiontousenuclearfuel assembliesfabricatedfromadifferentNRC-licensednuclear fuelsupplier.FairValueofContractsWeusederivativesprincipallytomanagetheriskofchangesinmarketpricesfornaturalgas,diesel,power,anduranium.Thefollowingtablepresentsthefavorable(unfavorable)changesinthefairvalueofallderivativecontractsmarked-to-market duringtheyearendedDecember31,2013.Weusevariousmethodstodeterminethefairvalueofourcontracts.Inaccordance withauthoritativeaccountingguidanceforfairvaluehierarchylevels,thesourcesweusedtodeterminethefairvalueofthese contractswereactivequotes(Level1),inputscorroboratedbymarketdata(Level2),andothermodelingandvaluation methodsthatarenotcorroboratedbymarketdata(Level3).SeeNote8-FairValueMeasurementsunderPartII,Item8,of thisreportforfurtherinformationregardingthemethodsusedtodeterminethefairvalueofthesecontracts.
Ameren Missouri AmerenIllinoisAmerenFairvalueofcontractsatbeginningofyear,net..................................................$3$(204)$(201)Contractsrealizedorotherwisesettledduringtheperiod...........................................(7)8477Changesinfairvaluesattributabletochangesinvaluationtechniqueandassumptions...................---Fairvalueofnewcontractsenteredintoduringtheperiod..........................................17(4)13Otherchangesinfairvalue..................................................................(4)(29)(33)Fairvalueofcontractsoutstandingatendofyear,net.............................................$9$(153)$(144) 69 ThefollowingtablepresentsmaturitiesofderivativecontractsasofDecember31,2013,basedonthehierarchylevelsusedtodeterminethefairvalueofthecontracts:SourcesofFairValue MaturityLessThan1Year Maturity1-3Years Maturity4-5YearsMaturityinExcessof5Years TotalFairValueAmerenMissouri:Level1.......................................................$(2)$-$-$-$(2)Level2 (a).....................................................(1)(4)(1)(1)(7)Level3 (b).....................................................18---18 Total.........................................................$15$(4)$(1)$(1)$9AmerenIllinois:
Level1.......................................................$-$-$-$-$-Level2 (a).....................................................(26)(19)--(45)Level3 (b).....................................................(9)(21)(20)(58)(108)
Total.........................................................$(35)$(40)$(20)$(58)$(153)
Ameren:
Level1.......................................................$(2)$-$-$-$(2)Level2 (a).....................................................(27)(23)(1)(1)(52)Level3 (b).....................................................9(21)(20)(58)(90)
Total.........................................................$(20)$(44)$(21)$(59)$(144)(a)Principallyfixed-pricevs.floatingover-the-counterpowerswaps,powerforwards,andfixed-pricevs.floatingover-the-counternaturalgas swaps.(b)Principallypowerforwardcontractvaluesbasedoninformationfromexternalsources,historicalresults,andourestimates.Level3alsoincludesoptioncontractvaluesbasedonaBlack-Scholesmodel.ITEM8.FINANCIALSTATEMENTSANDSUPPLEMENTARYDATAReportofIndependentRegisteredPublicAccountingFirmTotheBoardofDirectorsandShareholdersofAmerenCorporation:Inouropinion,theconsolidatedfinancialstatementslistedintheindexappearingunderItem15(a)(1)presentfairly,inallmaterialrespects,thefinancialpositionofAmerenCorporationanditssubsidiariesatDecember31,2013and2012,andtheresultsoftheiroperationsandtheircashflowsforeachofthethreeyearsintheperiodendedDecember31,2013,in conformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.Inaddition,inouropinion,the financialstatementscheduleslistedintheindexappearingunderItem15(a)(2)presentfairly,inallmaterialrespects,the informationsetforththereinwhenreadinconjunctionwiththerelatedconsolidatedfinancialstatements.Also,inouropinion, theCompanymaintained,inallmaterialrespects,effectiveinternalcontroloverfinancialreportingasofDecember31,2013, basedoncriteriaestablishedinInternalControl-IntegratedFramework(1992)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO1992).TheCompany'smanagementisresponsibleforthesefinancial statementsandfinancialstatementschedules,formaintainingeffectiveinternalcontroloverfinancialreportingandforits assessmentoftheeffectivenessofinternalcontroloverfinancialreporting,includedinManagement'sReportonInternal ControloverFinancialReportingappearingunderItem9A.Ourresponsibilityistoexpressopinionsonthesefinancial statements,onthefinancialstatementschedules,andontheCompany'sinternalcontroloverfinancialreportingbasedonour integratedaudits.WeconductedourauditsinaccordancewiththestandardsofthePublicCompanyAccountingOversight Board(UnitedStates).Thosestandardsrequirethatweplanandperformtheauditstoobtainreasonableassuranceabout whetherthefinancialstatementsarefreeofmaterialmisstatementandwhethereffectiveinternalcontroloverfinancial reportingwasmaintainedinallmaterialrespects.Ourauditsofthefinancialstatementsincludedexamining,onatestbasis, evidencesupportingtheamountsanddisclosuresinthefinancialstatements,assessingtheaccountingprinciplesusedand significantestimatesmadebymanagement,andevaluatingtheoverallfinancialstatementpresentation.Ourauditofinternal controloverfinancialreportingincludedobtaininganunderstandingofinternalcontroloverfinancialreporting,assessingthe riskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbased ontheassessedrisk.Ourauditsalsoincludedperformingsuchotherproceduresasweconsiderednecessaryinthe circumstances.Webelievethatourauditsprovideareasonablebasisforouropinions.Acompany'sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerally acceptedaccountingprinciples.Acompany'sinternalcontroloverfinancialreportingincludesthosepoliciesandprocedures 70 that(i)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(ii)providereasonableassurancethattransactionsarerecordedasnecessaryto permitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthe company;and(iii)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,or dispositionofthecompany'sassetsthatcouldhaveamaterialeffectonthefinancialstatements.Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecomeinadequate becauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate./s/PricewaterhouseCoopersLLPPricewaterhouseCoopersLLPSt.Louis,Missouri March3,2014ReportofIndependentRegisteredPublicAccountingFirmTotheBoardofDirectorsandShareholdersofUnionElectricCompany:Inouropinion,thefinancialstatementslistedintheindexappearingunderItem15(a)(1)presentfairly,inallmaterialrespects,thefinancialpositionofUnionElectricCompanyatDecember31,2013and2012,andtheresultsofitsoperationsanditscash flowsforeachofthethreeyearsintheperiodendedDecember31,2013,inconformitywithaccountingprinciplesgenerally acceptedintheUnitedStatesofAmerica.Inaddition,inouropinion,thefinancialstatementschedulelistedintheindex appearingunderItem15(a)(2)presentsfairly,inallmaterialrespects,theinformationsetforththereinwhenreadin conjunctionwiththerelatedfinancialstatements.Thesefinancialstatementsandfinancialstatementschedulearethe responsibilityoftheCompany'smanagement.Ourresponsibilityistoexpressanopiniononthesefinancialstatementsand financialstatementschedulebasedonouraudits.Weconductedourauditsofthesestatementsinaccordancewiththe standardsofthePublicCompanyAccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanand performtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements, assessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,andevaluatingtheoverallfinancial statementpresentation.Webelievethatourauditsprovideareasonablebasisforouropinion./s/PricewaterhouseCoopersLLPPricewaterhouseCoopersLLPSt.Louis,Missouri March3,2014ReportofIndependentRegisteredPublicAccountingFirmTotheBoardofDirectorsandShareholdersofAmerenIllinoisCompany:Inouropinion,thefinancialstatementslistedintheindexappearingunderItem15(a)(1)presentfairly,inallmaterialrespects,thefinancialpositionofAmerenIllinoisCompanyatDecember31,2013and2012,andtheresultsofitsoperationsandits cashflowsforeachofthethreeyearsintheperiodendedDecember31,2013,inconformitywithaccountingprinciples generallyacceptedintheUnitedStatesofAmerica.Inaddition,inouropinion,thefinancialstatementschedulelistedinthe indexappearingunderItem15(a)(2)presentsfairly,inallmaterialrespects,theinformationsetforththereinwhenreadin conjunctionwiththerelatedfinancialstatements.Thesefinancialstatementsandfinancialstatementschedulearethe responsibilityoftheCompany'smanagement.Ourresponsibilityistoexpressanopiniononthesefinancialstatementsand financialstatementschedulebasedonouraudits.Weconductedourauditsofthesestatementsinaccordancewiththe standardsofthePublicCompanyAccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanand performtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements, assessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,andevaluatingtheoverallfinancial statementpresentation.Webelievethatourauditsprovideareasonablebasisforouropinion./s/PricewaterhouseCoopersLLPPricewaterhouseCoopersLLPSt.Louis,Missouri March3,2014 71 AMERENCORPORATIONCONSOLIDATEDSTATEMENTOFINCOME(LOSS)(Inmillions,exceptpershareamounts)YearEndedDecember31, 2013 2012 2011OperatingRevenues:
Electric$4,832$4,857$5,147 Gas 1,0069241,001Totaloperatingrevenues 5,8385,7816,148OperatingExpenses:
Fuel 845714866Purchasedpower 502780952Gaspurchasedforresale 526472570Otheroperationsandmaintenance 1,6171,5111,562TaumSaukregulatorydisallowance
--89Depreciationandamortization 706673643Taxesotherthanincometaxes 458443433Totaloperatingexpenses 4,6544,5935,115OperatingIncome 1,1841,1881,033OtherIncomeandExpenses:Miscellaneousincome 697068Miscellaneousexpense 263723Totalotherincome 433345InterestCharges 398392387IncomeBeforeIncomeTaxes 829829691IncomeTaxes 311307254IncomefromContinuingOperations 518522437Income(Loss)fromDiscontinuedOperations,NetofTaxes(Note16)
(223)(1,496)89NetIncome(Loss) 295(974)526Less:NetIncome(Loss)AttributabletoNoncontrollingInterests:ContinuingOperations 6 66DiscontinuedOperations
-(6)1NetIncome(Loss)AttributabletoAmerenCorporation:ContinuingOperations512516431DiscontinuedOperations(223)(1,490)88NetIncome(Loss)AttributabletoAmerenCorporation$289$(974)$519Earnings(Loss)perCommonShare-Basic:ContinuingOperations$2.11$2.13$1.79DiscontinuedOperations(0.92)(6.14)0.36Earnings(Loss)perCommonShare-Basic$1.19$(4.01)$2.15Earnings(Loss)perCommonShare-Diluted:ContinuingOperations$2.10$2.13$1.79DiscontinuedOperations(0.92)(6.14)0.36Earnings(Loss)perCommonShare-Diluted$1.18$(4.01)$2.15DividendsperCommonShare$1.600$1.600$1.555AverageCommonSharesOutstanding-Basic 242.6242.6241.5AverageCommonSharesOutstanding-Diluted 244.5243.0242.1Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
72 AMERENCORPORATIONCONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOME(LOSS)(Inmillions)YearEndedDecember31, 2013 2012 2011IncomefromContinuingOperations$518$522$437OtherComprehensiveIncome(Loss),NetofTaxes:Pensionandotherpostretirementbenefitplanactivity,netofincometaxes(benefit)of$16,$(6),and$(14),respectively 30(8)(19)ComprehensiveIncomefromContinuingOperations 548514418Less:ComprehensiveIncomefromContinuingOperationsAttributabletoNoncontrollingInterests 6 66ComprehensiveIncomefromContinuingOperationsAttributabletoAmerenCorporation542508412Income(Loss)fromDiscontinuedOperations,NetofTaxes(223)(1,496)89OtherComprehensiveIncome(Loss)fromDiscontinuedOperations,NetofIncomeTaxes(Benefit)of$(10),$40,and$(14),respectively(18)58(20)ComprehensiveIncome(Loss)fromDiscontinuedOperations (241)(1,438)69Less:ComprehensiveIncomefromDiscontinuedOperationsAttributabletoNoncontrollingInterest 12(5)ComprehensiveIncome(Loss)fromDiscontinuedOperationsAttributabletoAmerenCorporation(242)(1,440)74ComprehensiveIncome(Loss)AttributabletoAmerenCorporation$300$(932)$486Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
73 AMERENCORPORATIONCONSOLIDATEDBALANCESHEET(Inmillions,exceptpershareamounts)December31, 2013 2012 ASSETSCurrentAssets:Cashandcashequivalents$30$184Accountsreceivable-trade(lessallowancefordoubtfulaccountsof$18and$17,respectively) 404 354Unbilledrevenue 304 291Miscellaneousaccountsandnotesreceivable 196 71Materialsandsupplies 526 570Currentregulatoryassets 156 247Currentaccumulateddeferredincometaxes,net 106 170Othercurrentassets 85 98Assetsofdiscontinuedoperations(Note16) 165 1,611Totalcurrentassets 1,972 3,596PropertyandPlant,Net 16,205 15,348InvestmentsandOtherAssets:Nucleardecommissioningtrustfund 494 408 Goodwill 411 411Intangibleassets 22 14Regulatoryassets 1,240 1,786Otherassets 698 667Totalinvestmentsandotherassets 2,865 3,286TOTALASSETS$21,042$22,230LIABILITIESANDEQUITYCurrentLiabilities:Currentmaturitiesoflong-termdebt$534$355Short-termdebt 368-Accountsandwagespayable 806 533Taxesaccrued 55 49Interestaccrued 86 89Customerdeposits 105 107Mark-to-marketderivativeliabilities 52 92Currentregulatoryliabilities 216 100Othercurrentliabilities 194 168Liabilitiesofdiscontinuedoperations(Note16) 45 1,193Totalcurrentliabilities 2,461 2,686Long-termDebt,Net 5,504 5,802DeferredCreditsandOtherLiabilities:Accumulateddeferredincometaxes,net 3,166 3,186Accumulateddeferredinvestmenttaxcredits 63 70Regulatoryliabilities 1,705 1,589Assetretirementobligations 369 349Pensionandotherpostretirementbenefits 466 1,138Otherdeferredcreditsandliabilities 622 643Totaldeferredcreditsandotherliabilities 6,391 6,975CommitmentsandContingencies(Notes2,10,15and16)AmerenCorporationStockholders'Equity:Commonstock,$.01parvalue,400.0sharesauthorized-sharesoutstandingof242.6 2 2Otherpaid-incapital,principallypremiumoncommonstock 5,632 5,616Retainedearnings 907 1,006Accumulatedothercomprehensiveincome(loss) 3 (8)TotalAmerenCorporationstockholders'equity 6,544 6,616NoncontrollingInterests 142 151Totalequity 6,686 6,767TOTALLIABILITIESANDEQUITY$21,042$22,230Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
74 AMERENCORPORATIONCONSOLIDATEDSTATEMENTOFCASHFLOWS(Inmillions)YearEndedDecember31, 2013 2012 2011CashFlowsFromOperatingActivities:Netincome(loss)$295$(974)$526(Income)lossfromdiscontinuedoperations,netoftax 2231,496(89)Adjustmentstoreconcilenetincome(loss)tonetcashprovidedbyoperatingactivities:Depreciationandamortization 666633602Amortizationofnuclearfuel 718361Amortizationofdebtissuancecostsandpremium/discounts 242016Deferredincometaxesandinvestmenttaxcredits,net 410257262Allowanceforequityfundsusedduringconstruction (37)(36)(34)Stock-basedcompensationcosts 272917TaumSaukregulatorydisallowance
--89 Other 23(7)1Changesinassetsandliabilities:
Receivables (60)30200Materialsandsupplies 60(28)(29)Accountsandwagespayable 81(34)(28)Taxesaccrued (195)(4)(5)Assets,other 2(6)59Liabilities,other 3365(85)Pensionandotherpostretirementbenefits (28)(23)(100)Counterpartycollateral,net 414136Premiumspaidonlong-termdebtrepurchases
-(138)-Netcashprovidedbyoperatingactivities-continuingoperations 1,6361,4041,499Netcashprovidedbyoperatingactivities-discontinuedoperations 57286379Netcashprovidedbyoperatingactivities 1,6931,6901,878CashFlowsFromInvestingActivities:Capitalexpenditures (1,379)(1,063)(881)Nuclearfuelexpenditures (45)(91)(62)Purchasesofsecurities-nucleardecommissioningtrustfund (214)(403)(220)Salesandmaturitiesofsecurities-nucleardecommissioningtrustfund 196384199Taxgrantsreceivedrelatedtorenewableenergyproperties Other 2215Netcashusedininvestingactivities-continuingoperations (1,440)(1,153)(949)Netcashusedininvestingactivities-discontinuedoperations (283)(157)(99)Netcashusedininvestingactivities (1,723)(1,310)(1,048)CashFlowsFromFinancingActivities:Dividendsoncommonstock (388)(382)(375)Dividendspaidtononcontrollinginterestholders (6)(6)(6)Short-termdebtandcreditfacilityrepayments,net 368(148)(481)Redemptions,repurchases,andmaturitiesoflong-termdebt (399)(760)(155)
Issuances:Long-termdebt 278882-Commonstock
--65Capitalissuancecosts (2)(16)-Advancesreceivedforconstruction 1 45Repaymentsofadvancesreceivedforconstruction (1)-(73)Netcashusedinfinancingactivities-continuingoperations (149)(426)(1,020)Netcashusedinfinancingactivities-discontinuedoperations
--(100)Netcashusedinfinancingactivities (149)(426)(1,120)Netchangeincashandcashequivalents (179)(46)(290)Cashandcashequivalentsatbeginningofyear 209255545Cashandcashequivalentsatendofyear 30209255Less:cashandcashequivalentsatendofyear-discontinuedoperations
-257Cashandcashequivalentsatendofyear-continuingoperations$30$184$248Noncashfinancingactivity-dividendsoncommonstock$-$(7)$-Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
75 AMERENCORPORATIONCONSOLIDATEDSTATEMENTOFSTOCKHOLDERS'EQUITY(Inmillions)December31, 2013 2012 2011CommonStock:Beginningofyear
$2$2$2Sharesissued
---Commonstock,endofyear 2 22OtherPaid-inCapital:Beginningofyear 5,6165,5985,520Sharesissued
--65Stock-basedcompensationactivity 161813Otherpaid-incapital,endofyear 5,6325,6165,598RetainedEarnings:Beginningofyear 1,0062,3692,225Netincome(loss)attributabletoAmerenCorporation 289(974)519 Dividends (388)(389)(375)Retainedearnings,endofyear 9071,0062,369AccumulatedOtherComprehensiveIncome(Loss):Derivativefinancialinstruments,beginningofyear 25 7-Changeinderivativefinancialinstruments (21)187Divestitureofderivativefinancialinstruments(Note16)
(4)--Derivativefinancialinstruments,endofyear
-257Deferredretirementbenefitcosts,beginningofyear (33)(57)(17)Changeindeferredretirementbenefitcosts 2924(40)Divestitureofdeferredretirementbenefitcosts(Note16) 7--Deferredretirementbenefitcosts,endofyear 3(33)(57)Totalaccumulatedothercomprehensiveincome(loss),endofyear 3(8)(50)TotalAmerenCorporationStockholders'Equity$6,544$6,616$7,919NoncontrollingInterests:Beginningofyear 151149154Netincomeattributabletononcontrollinginterestholders 6-7Dividendspaidtononcontrollinginterestholders (6)(6)(6)Divestitureofnoncontrollinginterest(Note16)
(9)--Other-8(6)Noncontrollinginterests,endofyear 142151149TotalEquity$6,686$6,767$8,068Commonstocksharesatbeginningofyear 242.6242.6240.4Sharesissued
--2.2Commonstocksharesatendofyear 242.6242.6242.6Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
76 UNIONELECTRICCOMPANY(d/b/aAMERENMISSOURI)STATEMENTOFINCOMEANDCOMPREHENSIVEINCOME(Inmillions)YearEndedDecember31, 2013 2012 2011OperatingRevenues:
Electric$3,379$3,132$3,222 Gas 161139156 Other 1 15Totaloperatingrevenues 3,5413,2723,383OperatingExpenses:
Fuel 845714866Purchasedpower 12778104Gaspurchasedforresale 786477Otheroperationsandmaintenance 915827934TaumSaukregulatorydisallowance
--89Depreciationandamortization 454440408Taxesotherthanincometaxes 319304296Totaloperatingexpenses 2,7382,4272,774OperatingIncome 803845609OtherIncomeandExpenses:Miscellaneousincome 586361Miscellaneousexpense 111410Totalotherincome 474951InterestCharges210223209IncomeBeforeIncomeTaxes 640671451IncomeTaxes242252161NetIncome 398419290OtherComprehensiveIncome-
--ComprehensiveIncome$398$419$290NetIncome$398$419$290PreferredStockDividends3 33NetIncomeAvailabletoCommonStockholder$395$416$287TheaccompanyingnotesastheyrelatetoAmerenMissouriareanintegralpartofthesefinancialstatements.
77 UNIONELECTRICCOMPANY(d/b/aAMERENMISSOURI)BALANCESHEET(Inmillions,exceptpershareamounts)December31, 2013 2012 ASSETSCurrentAssets:Cashandcashequivalents
$1$148Advancestomoneypool
-24Accountsreceivable-trade(lessallowancefordoubtfulaccountsof$5and$5,respectively) 191 161Accountsreceivable-affiliates 1 4Unbilledrevenue 168 145Miscellaneousaccountsandnotesreceivable 57 48Materialsandsupplies 352 397Currentregulatoryassets 118 163Othercurrentassets 71 69Totalcurrentassets 959 1,159PropertyandPlant,Net 10,452 10,161InvestmentsandOtherAssets:Nucleardecommissioningtrustfund 494 408Intangibleassets 22 14Regulatoryassets 534 852Otherassets 443 449Totalinvestmentsandotherassets 1,493 1,723TOTALASSETS$12,904$13,043LIABILITIESANDSTOCKHOLDERS'EQUITYCurrentLiabilities:Currentmaturitiesoflong-termdebt$109$205Borrowingsfrommoneypool 105-Accountsandwagespayable 387 345Accountspayable-affiliates 30 66Taxesaccrued 220 28Interestaccrued 57 60Currentregulatoryliabilities 57 18Othercurrentliabilities 82 77Totalcurrentliabilities 1,047 799Long-termDebt,Net 3,648 3,801DeferredCreditsandOtherLiabilities:Accumulateddeferredincometaxes,net 2,509 2,443Accumulateddeferredinvestmenttaxcredits 59 64Regulatoryliabilities 1,041 917Assetretirementobligations 366 346Pensionandotherpostretirementbenefits 189 461Otherdeferredcreditsandliabilities 52 158Totaldeferredcreditsandotherliabilities 4,216 4,389CommitmentsandContingencies(Notes2,10,14and15)Stockholders'Equity:Commonstock,$5parvalue,150.0sharesauthorized-102.1sharesoutstanding 511 511Otherpaid-incapital,principallypremiumoncommonstock 1,560 1,556Preferredstocknotsubjecttomandatoryredemption 80 80Retainedearnings 1,842 1,907Totalstockholders'equity 3,993 4,054TOTALLIABILITIESANDSTOCKHOLDERS'EQUITY$12,904$13,043TheaccompanyingnotesastheyrelatetoAmerenMissouriareanintegralpartofthesefinancialstatements.
78 UNIONELECTRICCOMPANY(d/b/aAMERENMISSOURI)STATEMENTOFCASHFLOWS(Inmillions)YearEndedDecember31, 2013 2012 2011CashFlowsFromOperatingActivities:Netincome$398$419$290Adjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivities:TaumSaukregulatorydisallowance
--89Depreciationandamortization 419407377Amortizationofnuclearfuel 718361FACprudencereviewcharges 26-18Amortizationofdebtissuancecostsandpremium/discounts 7 66Deferredincometaxesandinvestmenttaxcredits,net 65287155Allowanceforequityfundsusedduringconstruction (31)(31)(30)Other 18(8)Changesinassetsandliabilities:
Receivables (59)2766Materialsandsupplies 45(48)(7)Accountsandwagespayable 42(27)12Taxesaccrued 100(46)(6)Assets,other 47(35)79Liabilities,other 1014(48)Pensionandotherpostretirementbenefits 2 22Premiumspaidonlong-termdebtrepurchases
-(62)-Netcashprovidedbyoperatingactivities 1,1431,0041,056CashFlowsFromInvestingActivities:Capitalexpenditures (648)(595)(550)Nuclearfuelexpenditures (45)(91)(62)Purchasesofsecurities-nucleardecommissioningtrustfund (214)(403)(220)Salesandmaturitiesofsecurities-nucleardecommissioningtrustfund 196384199Moneypooladvances,net 24(24)-Taxgrantsreceivedrelatedtorenewableenergyproperties Other-86Netcashusedininvestingactivities (687)(703)(627)CashFlowsFromFinancingActivities:Dividendsoncommonstock (460)(400)(403)Dividendsonpreferredstock (3)(3)(3)Moneypoolborrowings,net 105--Redemptions,repurchases,andmaturitiesoflong-termdebt (249)(427)(5)Issuancesoflong-termdebt
-482-Capitalissuancecosts
-(7)-Capitalcontributionfromparent 4 1-Repaymentsofadvancesreceivedforconstruction
--(19)Netcashusedinfinancingactivities (603)(354)(430)Netchangeincashandcashequivalents (147)(53)(1)Cashandcashequivalentsatbeginningofyear 148201202Cashandcashequivalentsatendofyear
$1$148$201CashPaid(Refunded)DuringtheYear:Interest(netof$16,$15,and$25capitalized,respectively)$212$220$210Incometaxes,net 86(3)9TheaccompanyingnotesastheyrelatetoAmerenMissouriareanintegralpartofthesefinancialstatements.
79 UNIONELECTRICCOMPANY(d/b/aAMERENMISSOURI)STATEMENTOFSTOCKHOLDERS'EQUITY(Inmillions)December31, 2013 2012 2011CommonStock$511$511$511OtherPaid-inCapital:Beginningofyear 1,5561,5551,555Capitalcontributionfromparent 4 1-Otherpaid-incapital,endofyear 1,5601,5561,555PreferredStockNotSubjecttoMandatoryRedemption 808080RetainedEarnings:Beginningofyear 1,9071,8912,007Netincome 398419290Commonstockdividends (460)(400)(403)Preferredstockdividends (3)(3)(3)Retainedearnings,endofyear 1,8421,9071,891TotalStockholders'Equity$3,993$4,054$4,037TheaccompanyingnotesastheyrelatetoAmerenMissouriareanintegralpartofthesefinancialstatements.
80 AMERENILLINOISCOMPANY(d/b/aAMERENILLINOIS)STATEMENTOFINCOMEANDCOMPREHENSIVEINCOME(Inmillions)YearEndedDecember31, 2013 2012 2011OperatingRevenues:
Electric$1,461$1,739$1,940 Gas 847786846 Other 3-1Totaloperatingrevenues 2,3112,5252,787OperatingExpenses:Purchasedpower 380705853Gaspurchasedforresale 448408492Otheroperationsandmaintenance 693684640Depreciationandamortization 243221215Taxesotherthanincometaxes 132130129Totaloperatingexpenses 1,8962,1482,329OperatingIncome 415377458OtherIncomeandExpenses:Miscellaneousincome 10 77Miscellaneousexpense 9176Totalotherincome(expense) 1(10)1InterestCharges143129136IncomeBeforeIncomeTaxes 273238323IncomeTaxes11094127NetIncome 163144196OtherComprehensiveLoss,NetofTaxes:Pensionandotherpostretirementbenefitplanactivity,netofincometaxbenefitof$(2),$(2)and$(2),respectively (3)(3)(3)ComprehensiveIncome$160$141$193NetIncome$163$144$196PreferredStockDividends3 33NetIncomeAvailabletoCommonStockholder$160$141$193TheaccompanyingnotesastheyrelatetoAmerenIllinoisareanintegralpartoftheseconsolidatedfinancialstatements.
81 AMERENILLINOISCOMPANY(d/b/aAMERENILLINOIS)BALANCESHEET(Inmillions)December31, 2013 2012 ASSETSCurrentAssets:Cashandcashequivalents
$1$-Accountsreceivable-trade(lessallowancefordoubtfulaccountsof$13and$12,respectively) 201 182Accountsreceivable-affiliates
-10Unbilledrevenue 135 146Miscellaneousaccountsreceivable 13 22Materialsandsupplies 174 173Currentregulatoryassets 38 84Currentaccumulateddeferredincometaxes,net 45 85Othercurrentassets 26 47Totalcurrentassets 633 749PropertyandPlant,Net 5,589 5,052InvestmentsandOtherAssets:Taxreceivable-Genco
-39 Goodwill 411 411Regulatoryassets 701 934Otherassets 120 97Totalinvestmentsandotherassets 1,232 1,481TOTALASSETS$7,454$7,282LIABILITIESANDSTOCKHOLDERS'EQUITYCurrentLiabilities:Currentmaturitiesoflong-termdebt
$-$150Borrowingsfrommoneypool 56 24Accountsandwagespayable 243 146Accountspayable-affiliates 18 86Taxesaccrued 23 18Customerdeposits 79 85Mark-to-marketderivativeliabilities 36 77Currentenvironmentalremediation 43 37Currentregulatoryliabilities 159 82Othercurrentliabilities 114 92Totalcurrentliabilities 771 797Long-termDebt,Net 1,856 1,577DeferredCreditsandOtherLiabilities:Accumulateddeferredincometaxes,net 1,116 1,025Accumulateddeferredinvestmenttaxcredits 4 5Regulatoryliabilities 664 672Pensionandotherpostretirementbenefits 197 406Environmentalremediation 232 216Otherdeferredcreditsandliabilities 166 183Totaldeferredcreditsandotherliabilities 2,379 2,507CommitmentsandContingencies(Notes2,14and15)Stockholders'Equity:Commonstock,noparvalue,45.0sharesauthorized-25.5sharesoutstanding
--Otherpaid-incapital 1,965 1,965Preferredstocknotsubjecttomandatoryredemption 62 62Retainedearnings 410 360Accumulatedothercomprehensiveincome 11 14Totalstockholders'equity 2,448 2,401TOTALLIABILITIESANDSTOCKHOLDERS'EQUITY$7,454$7,282TheaccompanyingnotesastheyrelatetoAmerenIllinoisareanintegralpartoftheseconsolidatedfinancialstatements.
82 AMERENILLINOISCOMPANY(d/b/aAMERENILLINOIS)STATEMENTOFCASHFLOWS(Inmillions)YearEndedDecember31, 2013 2012 2011CashFlowsFromOperatingActivities:Netincome$163$144$196Adjustmentstoreconcilenetincometonetcashprovidedbyoperating activities:Depreciationandamortization 238214206Amortizationofdebtissuancecostsandpremium/discounts 15118Deferredincometaxesandinvestmenttaxcredits,net 104104155 Other 4(11)(14)Changesinassetsandliabilities:
Receivables 5023146Materialsandsupplies 1520(21)Accountsandwagespayable 19(21)(46)Taxesaccrued 283(12)Assets,other (53)22(3)Liabilities,other 3372(30)Pensionandotherpostretirementbenefits (8)(26)(101)Counterpartycollateral,net 434020Premiumspaidonlong-termdebtrepurchases
-(76)-Netcashprovidedbyoperatingactivities 651519504CashFlowsFromInvestingActivities:Capitalexpenditures (701)(442)(351)ReturnsfromATXIforconstruction
--49 Other 6 56Netcashusedininvestingactivities (695)(437)(296)CashFlowsFromFinancingActivities:Dividendsoncommonstock (110)(189)(327)Dividendsonpreferredstock (3)(3)(3)Moneypoolborrowings,net 3224-Redemptions,repurchases,andmaturitiesoflong-termdebt (150)(333)(150)Issuancesoflong-termdebt 278400-Capitalissuancecosts (2)(6)-Repaymentsofadvancesreceivedforconstruction (1)-(53)Advancesreceivedforconstruction 1 45Capitalcontributionfromparent
--19Netcashprovidedby(usedin)financingactivities 45(103)(509)Netchangeincashandcashequivalents 1(21)(301)Cashandcashequivalentsatbeginningofyear
-21322Cashandcashequivalentsatendofyear
$1$-$21CashPaid(Refunded)DuringtheYear:Interest(netof$4,$2,and$2capitalized,respectively)$112$125$137Incometaxes,net (23)(22)(14)TheaccompanyingnotesastheyrelatetoAmerenIllinoisareanintegralpartoftheseconsolidatedfinancialstatements.
83 AMERENILLINOISCOMPANY(d/b/aAMERENILLINOIS)STATEMENTOFSTOCKHOLDERS'EQUITY(Inmillions)December31, 2013 2012 2011CommonStock$-$-$-OtherPaid-inCapital:Beginningofyear 1,9651,9651,952Capitalcontributionfromparent
--13Otherpaid-incapital,endofyear 1,9651,9651,965PreferredStockNotSubjecttoMandatoryRedemption 626262RetainedEarnings:Beginningofyear 360408542Netincome 163144196Commonstockdividends (110)(189)(327)Preferredstockdividends (3)(3)(3)Retainedearnings,endofyear 410360408AccumulatedOtherComprehensiveIncome:Deferredretirementbenefitcosts,beginningofyear 141720Changeindeferredretirementbenefitcosts (3)(3)(3)Deferredretirementbenefitcosts,endofyear 111417Totalaccumulatedothercomprehensiveincome,endofyear 111417TotalStockholders'Equity$2,448$2,401$2,452TheaccompanyingnotesastheyrelatetoAmerenIllinoisareanintegralpartoftheseconsolidatedfinancialstatements.
84 AMERENCORPORATION(Consolidated)UNIONELECTRICCOMPANY(d/b/aAmerenMissouri)
AMERENILLINOISCOMPANY(d/b/aAmerenIllinois)COMBINEDNOTESTOFINANCIALSTATEMENTSDecember31,2013NOTE1-
SUMMARY
OFSIGNIFICANTACCOUNTING POLICIES GeneralAmeren,headquarteredinSt.Louis,Missouri,isapublicutilityholdingcompanyunderPUHCA2005,administeredbyFERC.Ameren'sprimaryassetsareits equityinterestsinitssubsidiaries.Ameren'ssubsidiaries areseparate,independentlegalentitieswithseparate businesses,assets,andliabilities.DividendsonAmeren's commonstockandthepaymentofotherexpensesby Amerendependondistributionsmadetoitbyits subsidiaries.Ameren'sprincipalsubsidiariesarelisted
below.UnionElectricCompany,doingbusinessasAmerenMissouri,operatesarate-regulatedelectricgeneration, transmission,anddistributionbusiness,andarate-regulatednaturalgastransmissionanddistribution businessinMissouri.AmerenMissouriwas incorporatedinMissouriin1922andissuccessortoa numberofcompanies,theoldestofwhichwas organizedin1881.Itisthelargestelectricutilityinthe stateofMissouri.Itsupplieselectricandnaturalgas servicetoa24,000-square-mileareaincentraland easternMissouri.Thisareahasanestimated populationof2.8millionandincludestheGreaterSt.
Louisarea.AmerenMissourisupplieselectricserviceto 1.2millioncustomersandnaturalgasserviceto 127,000customers.
AmerenIllinoisCompany,doingbusinessasAmeren Illinois,operatesarate-regulatedelectricandnatural gastransmissionanddistributionbusinessinIllinois.
AmerenIllinoiswascreatedbythemergerofCILCO andIPwithandintoCIPSin2010.CIPSwas incorporatedinIllinoisin1923andisthesuccessorto anumberofcompanies,theoldestofwhichwas organizedin1902.AmerenIllinoissupplieselectricand naturalgasutilityservicetoportionsofcentraland southernIllinoishavinganestimatedpopulationof 3.1millioninanareaof40,000squaremiles.Ameren Illinoissupplieselectricserviceto1.2million customersandnaturalgasserviceto767,000
customers.Amerenhasvariousothersubsidiariesresponsibleforactivitiessuchastheprovisionofsharedservices.Ameren alsohasasubsidiary,ATXI,thatoperatesaFERCrate-regulatedelectrictransmissionbusinessandisdeveloping theIllinoisRiversproject.OnMarch14,2013,AmerenenteredintoatransactionagreementtodivestNewAERtoIPH.OnDecember2, 2013,AmerencompletedthedivestitureofNewAERtoIPH.
OnJanuary31,2014,MedinaValleycompleteditssaleoftheElgin,GibsonCity,andGrandTowergas-firedenergy centerstoRocklandCapital.SeeNote16-Divestiture TransactionsandDiscontinuedOperationsforadditional
information.AsaresultofthetransactionagreementwithIPHandAmeren'splantosellitsElgin,GibsonCity,andGrand Towergas-firedenergycenters,Amerendeterminedthat NewAERandthegas-firedenergycentersqualifiedfor discontinuedoperationspresentationbeginningMarch14, 2013.Inaddition,asofDecember2,2013,Ameren abandonedtheMeredosiaandHutsonvilleenergycenters uponthecompletionofthedivestitureofNewAERtoIPH.
Amerenisprohibitedfromoperatingtheseenergycenters throughDecember31,2020,asaprovisionoftheIllinois PollutionControlBoard'sNovember2013ordergranting IPHavarianceoftheMPS.Asaresult,Amerendetermined thattheMeredosiaandHutsonvilleenergycentersqualified fordiscontinuedoperationspresentationasofDecember2, 2013.TheMeredosiaandHutsonvilleenergycentersceased operationsatDecember31,2011,andtherefore2011was thelastyearthoseenergycentershadamaterialeffecton Ameren'sconsolidatedfinancialstatements.Asaresultof theseevents,AmerenhassegregatedNewAER'sandthe Elgin,GibsonCity,GrandTower,Meredosia,and Hutsonvilleenergycenters'operatingresults,assets,and liabilitiesandpresentedthemseparatelyasdiscontinued operationsforallperiodspresentedinthisreport.Unless otherwisestated,thesenotestothefinancialstatements excludediscontinuedoperationsforallperiodspresented.
SeeNote16-DivestitureTransactionsandDiscontinued Operationsforadditionalinformationregardingthat
presentation.ThefinancialstatementsofAmerenarepreparedonaconsolidatedbasis,andthereforeincludetheaccountsofits majority-ownedsubsidiaries.AmerenMissouriandAmeren Illinoishavenosubsidiariesandthereforetheirfinancial statementsarenotpreparedonaconsolidatedbasis.All significantintercompanytransactionshavebeeneliminated.
Alltabulardollaramountsareinmillions,unlessotherwise
indicated.OuraccountingpoliciesconformtoGAAP.Ourfinancialstatementsreflectalladjustments(whichinclude normal,recurringadjustments)thatarenecessary,inour opinion,forafairpresentationofourresults.The preparationoffinancialstatementsinconformitywithGAAP requiresmanagementtomakecertainestimatesand assumptions.Suchestimatesandassumptionsaffect reportedamountsofassetsandliabilities,thedisclosureof contingentassetsandliabilitiesatthedatesoffinancial statements,andthereportedamountsofrevenuesand expensesduringthereportedperiods.Actualresultscould differfromthoseestimates.
RegulationCertainAmerensubsidiariesareregulatedbytheMoPSC,theICC,andFERC.Inaccordancewithauthoritativeaccountingguidanceregardingaccountingfor theeffectsofcertaintypesofregulation,AmerenMissouri 85 andAmerenIllinoisdefercertaincostsasassetspursuanttoactionsofrateregulatorsorbecauseofexpectationsthat thecompanieswillbeabletorecoversuchcostsinrates chargedtocustomers.AmerenMissouriandAmeren Illinoisalsodefercertainamountsasliabilitiespursuantto actionsofrateregulatorsorbasedontheexpectationthat suchamountswillbereturnedtocustomersinfuturerates.
Regulatoryassetsandliabilitiesareamortizedconsistent withtheperiodofexpectedregulatorytreatment.Inaddition tothecostrecoverymechanismsdiscussedinthe PurchasedGas,PowerandFuelRate-adjustment Mechanismssectionbelow,AmerenMissouriandAmeren Illinoishaveapprovalsfromregulatorstouseothercost recoverymechanisms.AmerenMissourihasavegetation managementandinfrastructureinspectioncosttracker,a pensionandpostretirementbenefitcosttracker,an uncertaintaxpositionstracker,arenewableenergy standardscosttracker,astormrestorationcosttracker,and theMEEIAenergyefficiencyrider.Inadditionto participatingintheIEIMA'sformularateregulatory framework,AmerenIllinoishasanenvironmentalcostrider, anasbestos-relatedlitigationrider,anenergyefficiency rider,andabaddebtrider.SeeNote2-Rateand RegulatoryMattersforadditionalinformationonregulatory assetsandliabilities.Inaddition,othercoststhatAmerenMissouriandAmerenIllinoisexpecttorecoverfrom customersarerecordedasconstructionworkinprogress andpropertyandplant,net.SeeNote3-Propertyand Plant,Net.CashandCashEquivalentsCashandcashequivalentsincludecashonhandandtemporaryinvestmentspurchasedwithanoriginalmaturityofthreemonthsorless.AllowanceforDoubtfulAccountsReceivableTheallowancefordoubtfulaccountsrepresentsourestimateofexistingaccountsreceivablethatwillultimatelybeuncollectible.Theallowanceiscalculatedbyapplying estimatedlossfactorstovariousclassesofoutstanding receivables,includingunbilledrevenue.Thelossfactors usedtoestimateuncollectibleaccountsarebasedupon bothhistoricalcollectionsexperienceandmanagement's estimateoffuturecollectionssuccessgiventheexistingand anticipatedfuturecollectionsenvironment.AmerenIllinois hasaratemechanismthatadjustsratesfornetwrite-offsof customeraccountsreceivableaboveorbelowthosebeing collectedinrates.MaterialsandSuppliesMaterialsandsuppliesarerecordedatthelowerofcostormarket.Costisdeterminedusingtheaverage-costmethod.Materialsandsuppliesarecapitalizedasinventorywhenpurchasedandthenexpensedorcapitalizedasplantassetswheninstalled,asappropriate.ThefollowingtablepresentsabreakdownofmaterialsandsuppliesforeachoftheAmeren CompaniesatDecember31,2013,and2012:AmerenMissouriAmerenIllinoisAmeren 2013 Fuel (a)......................................................................$144$-$144Gasstoredunderground
........................................................17110127Othermaterialsandsupplies
....................................................19164255$352$174$526 2012 Fuel (a)......................................................................$198$-$198Gasstoredunderground
........................................................18113131Othermaterialsandsupplies....................................................18160241$397$173$570(a)Consistsofcoal,oil,andpropane.PropertyandPlantWecapitalizethecostofadditionstoandbettermentsofunitsofpropertyandplant.Thecostincludeslabor,material,applicabletaxes,andoverhead.Anallowanceforfundsused duringconstruction,asdiscussedbelow,isalsocapitalizedas acostofourrate-regulatedassets.Maintenanceexpenditures, includingnuclearrefuelingandmaintenanceoutages,are expensedasincurred.Whenunitsofdepreciablepropertyare retired,theoriginalcosts,lesssalvagevalues,arechargedto accumulateddepreciation.Assetremovalcostsaccruedbyour rate-regulatedoperationsthatdonotconstitutelegal obligationsareclassifiedasaregulatoryliability.SeeAsset RetirementObligationsbelowandNote3-PropertyandPlant, Net,foradditionalinformation.
DepreciationDepreciationisprovidedovertheestimatedlivesofthevariousclassesofdepreciablepropertybyapplying compositeratesonastraight-linebasistothecostbasisof suchproperty.Theprovisionfordepreciationforthe AmerenCompaniesin2013,2012and2011rangedfrom 3%to4%oftheaveragedepreciablecost.AllowanceforFundsUsedDuringConstructionWecapitalizeallowanceforfundsusedduringconstruction,orthecostofborrowedfundsandthecostofequityfunds(preferredandcommonstockholders'equity) 86 applicabletorate-regulatedconstructionexpenditures,inaccordancewiththeutilityindustry'saccountingpractice.
Allowanceforfundsusedduringconstructiondoesnot representacurrentsourceofcashfunds.Thisaccounting practiceoffsetstheeffectonearningsofthecostof financingduringconstruction,andittreatssuchfinancing costsinthesamemannerasconstructionchargesforlabor andmaterials.Underacceptedratemakingpractice,cashrecoveryofallowanceforfundsusedduringconstructionandother constructioncostsoccurswhencompletedprojectsare placedinserviceandreflectedincustomerrates.The followingtablepresentstheannualallowanceforfunds usedduringconstructionratesthatwereutilizedduring 2013,2012and2011:201320122011AmerenMissouri
................
8%8%8%AmerenIllinois
..................
8%9%9%GoodwillandIntangibleAssets Goodwill.Goodwillrepresentstheexcessofthepurchasepriceofanacquisitionoverthefairvalueofthe netassetsacquired.AmerenandAmerenIllinoishad recordedgoodwillof$411millionatDecember31,2013, and2012.Amerenhastworeportingunits,whichalsorepresentAmeren'sreportablesegments.Ameren'sreportingunits areAmerenMissouriandAmerenIllinois.AmerenIllinois hasonereportingunit,AmerenIllinois.Ameren'sand AmerenIllinois'reportingunitshavebeendefinedand goodwillhasbeenevaluatedattheoperatingsegmentlevel inaccordancewithauthoritativeaccountingguidance.Our reportingunitsrepresentbusinessesforwhichdiscrete financialinformationisavailableandreviewedregularlyby management.AllofAmeren'sandAmerenIllinois'goodwill atDecember31,2013,and2012,hasbeenassignedtothe AmerenIllinoisreportingunit.WeevaluategoodwillforimpairmentasofOctober31ofeachyear,ormorefrequentlyifeventsand circumstancesindicatethattheassetmightbeimpaired.
AmerenandAmerenIllinoisappliedaqualitativegoodwill evaluationmodelfortheirannualgoodwillimpairmenttest conductedasofOctober31,2013.Basedontheresultsof Ameren'sandAmerenIllinois'qualitativeassessment, AmerenandAmerenIllinoisbelieveitwasmorelikelythan notthatthefairvalueoftheAmerenIllinoisreportingunit exceededitscarryingvalueasofOctober31,2013, indicatingnoimpairmentofAmeren'sorAmerenIllinois' goodwill.Thefollowingfactors,amongothers,were consideredbyAmerenandAmerenIllinoiswhenassessing whetheritwasmorelikelythannotthatthefairvalueofthe AmerenIllinoisreportingunitexceededitscarryingvalue fortheOctober31,2013,test:
macroeconomicconditions,includingthoseconditionswithinAmerenIllinois'serviceterritory; pendingratecaseoutcomesandprojectionsoffuture ratecaseoutcomes; changesinlawsandpotentiallawchanges; observableindustrymarketmultiples; achievementofIEIMAperformancemetricsandthe yieldofthe30-yearUnitedStatestreasurybonds;and actualandforecastedfinancialperformance.ThegoodwillassignedtotheAmerenIllinoisreportingunitontheDecember31,2013,balancesheetsofAmeren andAmerenIllinoishadnoaccumulatedgoodwill impairmentlosses.AmerenandAmerenIllinoiswill continuetomonitortheactualandforecastedoperating results,cashflows,marketcapitalization,andobservable industrymarketmultiplesoftheAmerenIllinoisreporting unitforsignsofpossibledeclinesinestimatedfairvalue andpotentialgoodwillimpairment.IntangibleAssets.AmerenandAmerenMissouriclassifyemissionallowancesandrenewableenergycredits asintangibleassets.AmerenIllinoisconsumesrenewable energycreditsastheyarepurchasedthroughtheIPA procurementprocessandexpensesthemimmediately.We evaluateintangibleassetsforimpairmentifeventsor changesincircumstancesindicatethattheircarrying amountmightbeimpaired.AtDecember31,2013,Ameren'sandAmerenMissouri'sintangibleassetsconsistedofrenewableenergy creditsobtainedthroughwindandsolarpowerpurchase agreements.ThebookvalueofAmeren'sandAmeren Missouri'srenewableenergycreditswas$22millionand
$22millionatDecember31,2013,respectively.Thebook valueofAmeren'sandAmerenMissouri'srenewableenergy creditswas$14millionand$14millionatDecember31, 2012,respectively.Renewableenergycreditsandemissionallowancesarechargedtopurchasedpowerexpenseandfuelexpense, respectively,astheyareusedinoperations.Inaccordance withtheMoPSC's2012electricrateorder,mostofAmeren Missouri'samortizationofintangibleassetsisdeferredasa regulatoryassetpendingfuturerecoveryfromcustomers throughrates.Thefollowingtablepresentsamortization expensebasedonusageofrenewableenergycreditsand emissionallowances,netofgainsfromsales,forAmeren, AmerenMissouri,andAmerenIllinoisduringtheyears endedDecember31,2013,2012,and2011.201320122011AmerenMissouri
...........$(a)$(a)$(a)AmerenIllinois
............
13 43 Ameren..................$13$4$3(a)Lessthan$1million.ImpairmentofLong-livedAssetsWeevaluatelong-livedassetsclassifiedasheldandusedforimpairmentwheneventsorchangesin circumstancesindicatethatthecarryingvalueofsuch assetsmaynotberecoverable.Whetherimpairmenthas 87 occurredisdeterminedbycomparingtheestimatedundiscountedcashflowsattributabletotheassetswiththe carryingvalueoftheassets.Ifthecarryingvalueexceeds theundiscountedcashflows,werecognizeanimpairment chargeequaltotheamountofthecarryingvaluethat exceedstheestimatedfairvalueoftheassets.Intheperiod inwhichwedetermineanassetmeetsheldforsalecriteria, werecordanimpairmentchargetotheextentthebook valueexceedsitsfairvaluelesscosttosell.During2011,theMoPSCissuedanelectricrateorderthatdisallowedtherecoveryofallcostsofenhancements, orcoststhatwouldhavebeenincurredabsentthebreach, relatedtotherebuildingoftheTaumSaukenergycenterin excessoftheamountrecoveredfrompropertyinsurance.
Consequently,AmerenandAmerenMissourieachrecorded apretaxchargetoearningsof$89million,whichis reflectedas"TaumSaukregulatorydisallowance"oneach company'sstatementofincome.
InvestmentsAmerenandAmerenMissourievaluateforimpairmenttheinvestmentsheldinAmerenMissouri'snucleardecommissioningtrustfund.Lossesonassetsinthetrust fundcouldresultinhigherfundingrequirementsfor decommissioningcosts,whichAmerenMissouribelieves wouldberecoveredinelectricratespaidbyitscustomers.
Accordingly,AmerenandAmerenMissourirecognizea regulatoryassetontheirbalancesheetsforlosseson investmentsheldinthenucleardecommissioningtrust fund.SeeNote9-NuclearDecommissioningTrustFund Investmentsforadditionalinformation.EnvironmentalCostsLiabilitiesforenvironmentalcostsarerecordedonanundiscountedbasiswhenitisprobablethataliabilityhasbeenincurredandtheamountoftheliabilitycanbe reasonablyestimated.Costsareexpensedordeferredasa regulatoryassetwhenitisexpectedthatthecostswillbe recoveredfromcustomersinfuturerates.Ifenvironmental expendituresarerelatedtofacilitiescurrentlyinuse,such aspollutioncontrolequipment,thecostiscapitalizedand depreciatedovertheexpectedlifeoftheasset.UnamortizedDebtDiscount,Premium,andExpenseDiscount,premium,andexpenseassociatedwithlong-termdebtareamortizedoverthelivesoftherelatedissues.
RevenueOperatingRevenuesTheAmerenCompaniesrecordoperatingrevenueforelectricornaturalgasservicewhenitisdeliveredtocustomers.Weaccrueanestimateofelectricandnatural gasrevenuesforservicerenderedbutunbilledattheendof eachaccountingperiod.Beginningin2012,AmerenIllinoiselectedtoparticipateintheperformance-basedformularatemakingframeworkpursuanttotheIEIMA.TheIEIMAprovidesfor anannualreconciliationofAmerenIllinois'electric distributionrevenuerequirement.Asofeachbalancesheet date,AmerenIllinoisrecordsitsestimateoftheelectric distributionrevenueimpactresultingfromthereconciliation oftherevenuerequirementnecessarytoreflecttheactual costsincurredforthatyearwiththerevenuerequirement thatwasineffectforbillingpurposesforthatyear.Ifthe currentyear'srevenuerequirementisgreaterthanthe revenuerequirementcustomerrateswerebasedupon,an increasetoelectricoperatingrevenueswithanoffsettoa regulatoryassetisrecordedtoreflecttheexpectedrecovery ofthoseadditionalcostsfromcustomerswithinthenext twoyears.Ifthecurrentyear'srevenuerequirementisless thantherevenuerequirementcustomerrateswerebased upon,areductiontoelectricoperatingrevenueswithan offsettoaregulatoryliabilityisrecordedtoreflectthe expectedrefundtocustomerswithinthenexttwoyears.
SeeNote2-RateandRegulatoryMattersforinformation regardingAmerenIllinois'revenuerequirement reconciliationpursuanttotheIEIMA.SimilartotheIEIMAprocessdescribedabove,AmerenIllinoisandATXIrecordtheimpactofarevenue requirementreconciliationforeachcompany'selectric transmissionjurisdiction,pursuanttoFERC-approvedrate
treatment.NuclearFuelAmerenMissouri'scostofnuclearfueliscapitalizedandthenamortizedtofuelexpenseonaunit-of-productionbasis.Spentfueldisposalcostisbasedonnet kilowatthoursgeneratedandsold.Thatcostischargedto "OperatingExpenses-Fuel"inthestatementofincome.PurchasedGas,PowerandFuelRate-adjustment MechanismsAmerenMissouriandAmerenIllinoishavevariousrate-adjustmentmechanismsinplacethatprovideforthe recoveryofpurchasednaturalgasandelectricfueland purchasedpowercosts.SeeNote2-RateandRegulatory Mattersfortheregulatoryassetsandliabilitiesrecordedat December31,2013,and2012,relatedtotherate-adjustmentmechanismsdiscussedbelow.InAmerenMissouri'sandAmerenIllinois'retailnaturalgasutilityjurisdictions,changesinnaturalgascostsare reflectedinbillingstotheirnaturalgasutilitycustomers throughPGAclauses.Thedifferencesbetweenactual naturalgascostsandcostsbilledtocustomersinagiven periodaredeferredasregulatoryassetsorliabilities.The deferredamountsareeitherbilledorrefundedtonatural gasutilitycustomersinasubsequentperiod.InAmerenIllinois'retailelectricutilityjurisdictions,changesinpurchasedpowerandtransmissionservice costsarereflectedinbillingstotheirelectricutility customersthroughpass-throughrate-adjustmentclauses.
Thedifferencesbetweenactualpurchasedpowerand transmissionservicecostsandcostsbilledtocustomersin 88 agivenperiodaredeferredasregulatoryassetsorliabilities.Thedeferredamountsareeitherbilledorrefundedto electricutilitycustomersinasubsequentperiod.AmerenMissourihasaFACthatallowsanadjustmentofelectricratesthreetimesperyearforapass-throughto customersof95%ofchangesinfuel,certainfueladditives, emissionallowances,purchasedpowercosts,transmission costsandrevenues,andMISOcostsandrevenues,netof off-systemsalesrevenues,greaterorlessthantheamount setinbaserateswithoutatraditionalrateproceeding, subjecttoMoPSCprudencyreview.Thedifferences betweenthecostoffuelincurredandthecostoffuel recoveredfromAmerenMissouricustomers'baseratesare deferredasregulatoryassetsorliabilities.Thedeferred amountsareeitherbilledorrefundedtoAmerenMissouri's electricutilitycustomersinasubsequentperiod.AccountingforMISOTransactionsMISO-relatedpurchaseandsaletransactionsarerecordedbyAmeren,AmerenMissouriandAmerenIllinoisusingsettlementinformationprovidedbyMISO.Ameren Missourirecordsthesepurchaseandsaletransactionsona nethourlyposition.AmerenMissourirecordsnetpurchases inasinglehourin"OperatingExpenses-Purchased power"andnetsalesinasinglehourin"Operating Revenues-Electric"initsstatementofincome.Ameren Illinoisrecordsnetpurchasesin"Operating Expenses-PurchasedPower"initsstatementofincometo reflectallofitsMISOtransactionsrelatingtothe procurementofpowerforitscustomers.Onoccasion, AmerenMissouriandAmerenIllinoisprior-period transactionswillberesettledoutsidetheroutinesettlement processbecauseofachangeinMISO'starifforamaterial interpretationthereof.Inthesecases,AmerenMissouriand AmerenIllinoisrecognizeexpensesassociatedwith resettlementsoncetheresettlementisprobableandthe resettlementamountcanbeestimated,andtheAmeren Companiesrecognizerevenuesoncetheresettlement amountisreceived.Stock-basedCompensationStock-basedcompensationcostismeasuredatthegrantdatebasedonthefairvalueoftheaward.Amerenrecognizesascompensationexpensetheestimatedfair valueofstock-basedcompensationonastraight-linebasis overtherequisiteserviceperiod.SeeNote12-Stock-basedCompensationforadditionalinformation.ExciseTaxesExcisetaxesleviedonusarereflectedonAmerenMissourielectriccustomerbillsandonAmerenMissouriandAmerenIllinoisnaturalgascustomerbills.Theyare recordedgrossin"OperatingRevenues-Electric,"
"OperatingRevenues-Gas"and"Operating Expenses-Taxesotherthanincometaxes"onthe statementofincome(loss).Excisetaxesreflectedon AmerenIllinoiselectriccustomerbillsareimposedonthecustomerandarethereforenotincludedinrevenuesand expenses.Theyareincludedin"Taxesaccrued"onthe balancesheet.Thefollowingtablepresentsexcisetaxes recordedin"OperatingRevenues-Electric,""Operating Revenues-Gas,"and"OperatingExpenses-Taxesother thanincometaxes"fortheyearsended2013,2012and
2011:201320122011AmerenMissouri
..........$152$139$137AmerenIllinois
............
615457 Ameren.................$213$193$194IncomeTaxesAmerenusesanassetandliabilityapproachforitsfinancialaccountingandreportingofincometaxes,in accordancewithauthoritativeaccountingguidance.
Deferredtaxassetsandliabilitiesarerecognizedfor transactionsthataretreateddifferentlyforfinancial reportingandincometaxreturnpurposes.Thesedeferred taxassetsandliabilitiesarebasedonstatutorytaxrates.Werecognizethatregulatorswillprobablyreducefuturerevenuesfordeferredtaxliabilitiesthatwereinitially recordedatratesinexcessofthecurrentstatutoryrate.
Therefore,reductionsinthedeferredtaxliability,which wererecordedbecauseofdecreasesinthestatutoryrate, havebeencreditedtoaregulatoryliability.Aregulatory assethasbeenestablishedtorecognizetheprobable recoveryinratesoffutureincometaxes,resultingfromthe reversaloftheequityportionoftheallowanceforfunds usedduringconstructionthatwasanunrecognized temporarydifferencepriortotheadoptionofthe authoritativeaccountingguidanceforincometaxes.InvestmenttaxcreditsusedontaxreturnsforprioryearshavebeendeferredinaccordancewithGAAP.The creditsarebeingamortizedovertheusefullivesofthe relatedinvestment.Deferredincometaxeswererecorded onthetemporarydifferencerepresentedbythedeferred investmenttaxcreditsandacorrespondingregulatory liability.Thisrecognizestheexpectedreductioninrate revenueforfuturelowerincometaxesassociatedwiththe amortizationoftheinvestmenttaxcredits.SeeNote13-IncomeTaxes.Forcertainrenewableenergyconstructionprojectsplacedinservice,AmerenMissourielectedtoseekfederal taxgrantsinlieuoftheinvestmenttaxcreditsforwhichthe projectsalsoqualified.Thesegrantswereaccountedfor usingagrantrecognitionaccountingmodel.Ameren Missourielectedtoreducethebasisofpropertyasgrants werereceived,whichwillreducetheamountofdepreciation expenserecognizedinfutureperiods.In2012,Ameren Missourireceived$18millioninfederaltaxgrants.AmerenMissouri,AmerenIllinois,andalltheotherAmerensubsidiarycompaniesarepartiestoataxallocation agreementwithAmerenthatprovidesfortheallocationof consolidatedtaxliabilities.Thetaxallocationagreement specifiesthateachpartybeallocatedanamountoftax 89 similartothatwhichwouldbeowedhadthepartybeenseparatelysubjecttotax.Anynetbenefitattributabletothe parentisreallocatedtoothermembers.Thatallocationis treatedasacontributionofcapitaltothepartyreceivingthe
benefit.NoncontrollingInterestsAsofDecember31,2013,Ameren'snoncontrollinginterestsincludedthepreferredstocknotsubjectto mandatoryredemptionofAmerenMissouriandAmeren Illinois.AsofDecember31,2012,Ameren'snoncontrolling interestsalsoincludedthe20%ofEEInotownedby Ameren.Allnoncontrollinginterestsareclassifiedasa componentofequityseparatefromAmeren'sequityinits consolidatedbalancesheet.EarningsperShareBasicearningspershareiscomputedbydividingnetincomeattributabletoAmerenCorporationbytheweighted-averagenumberofcommonsharesoutstandingduringtheperiod.Dilutedearningspershareiscomputedbydividingnetincome attributabletoAmerenCorporationbythedilutedweighted-averagenumberofcommonsharesoutstandingduringtheperiod.
Dilutedearningspersharereflectsthepotentialdilutionthatwouldoccurifcertainstock-basedperformanceshareunitswere
settled.ThefollowingtablepresentsAmeren'sbasicanddilutedearningspersharecalculationsandreconcilestheweighted-averagenumberofcommonsharesoutstandingtothedilutedweighted-averagenumberofcommonsharesoutstandingfor theyearsendedDecember31,2013,2012and2011:201320122011Netincome(loss)attributabletoAmerenCorporation:Continuingoperations
..................................................................$512$516$431Discontinuedoperations
................................................................
(223)(1,490)88Netincome(loss)attributabletoAmerenCorporation
............................................$289$(974)$519Averagecommonsharesoutstanding-basic
..................................................
242.6242.6241.5Assumedsettlementofperformanceshareunits
................................................
1.90.40.6Averagecommonsharesoutstanding-diluted
.................................................
244.5243.0242.1Earnings(loss)percommonshare-basic:Continuingoperations
..................................................................$2.11$2.13$1.79Discontinuedoperations
................................................................
(0.92)(6.14)0.36Earnings(loss)percommonshare-basic
....................................................$1.19$(4.01)$2.15Earnings(loss)percommonshare-diluted:Continuingoperations
..................................................................$2.10$2.13$1.79Discontinuedoperations
................................................................
(0.92)(6.14)0.36Earnings(loss)percommonshare-diluted
...................................................$1.18$(4.01)$2.15Averageperformanceshareunitsexcludedfromcalculation (a).....................................
0.10.7-(a)Weighted-averagenumberofperformanceshareunitsthatwereexcludedfromthe"Assumedsettlementofperformanceshareunits"providedabovebecausetheperformanceormarketconditionsrelatedtotheawardshadnotyetbeenmet.SupplementalCashFlowInformationThefollowingtablepresentsadditionalinformationregardingAmeren'sconsolidatedstatementofcashflows fortheyearsendedDecember31,2013,2012and2011:201320122011Cashpaid(refunded)duringthe year: InterestContinuingoperations (a)........$362$384$393Discontinuedoperations (b)......314960$393$433$453Incometaxes,netContinuingOperations
.........$116$10$(47)DiscontinuedOperations
.......(108)(9)(14)$8$1$(61)(a)Netof$20million,$17million,and$27millioncapitalized, respectively.(b)Netof$17million,$13million,and$3millioncapitalized, respectively.SeeNote3-PropertyandPlant,Net,forinformationonaccruedcapitalexpenditures.AccountingChangesandOtherMattersThefollowingisasummaryofrecentlyadoptedauthoritativeaccountingguidance,aswellasguidanceissuedbutnotyetadopted,thatcouldaffecttheAmeren
Companies.PresentationofComprehensiveIncomeInJune2011,FASBamendeditsguidanceonthepresentationofcomprehensiveincomeinfinancialstatements.Theamendedguidancechangedthe presentationofcomprehensiveincomeinthefinancial statements.Itrequiresentitiestoreportcomponentsof comprehensiveincomeeitherinacontinuousstatementof comprehensiveincomeorintwoseparatebutconsecutive 90 statements.ThisguidancewaseffectivefortheAmerenCompaniesbeginninginthefirstquarterof2012with retroactiveapplicationrequired.Theimplementationofthe amendedguidancedidnotaffecttheAmerenCompanies' resultsofoperations,financialposition,orliquidity.InFebruary2013,FASBamendedthisguidancetorequireanentitytoprovideinformationabouttheamounts reclassifiedoutofaccumulatedOCIbycomponent.In addition,anentityisrequiredtopresentsignificantamounts reclassifiedoutofaccumulatedOCIbytherespectiveline itemsofnetincomeeitheronthefaceofthestatement wherenetincomeispresentedorinthefootnotes.This guidancewaseffectivefortheAmerenCompanies beginninginthefirstquarterof2013.Theimplementation ofthisamendedguidancedidnotaffecttheAmeren Companies'resultsofoperations,financialposition,or liquidity.TheamountsreclassifiedoutofaccumulatedOCI fortheAmerenCompaniescorrespondingtocontinuing operationsrelatedtopensionandotherpostretirementplan activity.Theseamountswereimmaterialfortheyearended December31,2013,andthereforenoadditionaldisclosures wererequired.DisclosuresaboutOffsettingAssetsandLiabilitiesInDecember2011,FASBissuedadditionalauthoritativeaccountingguidancetoimproveinformationdisclosedaboutfinancialandderivativeinstruments.The guidancerequiresanentitytodiscloseinformationabout offsettingandrelatedarrangementstoenableusersofthe financialstatementstounderstandtheeffectofthose arrangementsonitsfinancialposition.InJanuary2013, FASBamendedthisguidancetolimitthescopetoderivative instruments,repurchaseagreementsandreverse repurchaseagreements,andsecuritiesborrowingand securitieslendingtransactions.TheAmerenCompanies adoptedthisguidanceforthefirstquarterof2013.The implementationofthisadditionalguidancedidnotaffectthe AmerenCompanies'resultsofoperations,financial positions,orliquidity,asthisguidanceonlyrequires additionaldisclosures.SeeNote7-DerivativeFinancial Instrumentsfortherequiredadditionaldisclosures.PresentationofanUnrecognizedTaxBenefitInJuly2013,FASBissuedadditionalauthoritativeaccountingguidancetoprovideclarityforthefinancialstatementpresentationofanunrecognizedtaxbenefitwhena netoperatinglosscarryforward,asimilartaxloss,oratax creditcarryforwardexists.Itrequiresentitiestopresentan unrecognizedtaxbenefitasareductiontoadeferredtaxassetforanetoperatinglosscarryforward,asimilartaxloss, orataxcreditcarryforwardtotheextentanetoperatingloss carryforward,asimilartaxloss,orataxcreditcarryforwardis availableunderthetaxlaw.Currently,anyunrecognizedtax benefitisrecordedin"Otherdeferredcreditsandliabilities" onAmeren's,AmerenMissouri's,andAmerenIllinois' balancesheets.Afterthisguidancebecomeseffective,any unrecognizedtaxbenefitwillberecordedin"Accumulated deferredincometaxes,net"asareductiontothedeferredtax assetsfornetoperatingloss,asimilartaxloss,andtaxcredit carryforwardsontherespectivebalancesheets.At December31,2013,unrecognizedtaxbenefitsof$48million and$15millionwouldhavebeenrecordedin"Accumulated deferredincometaxes,net"atAmerenandAmerenMissouri, respectivelyunderthisnewguidance.Totheextentthatan unrecognizedtaxbenefitexceedsthesecarryforwards,the excesswouldcontinuetoberecordedin"Otherdeferred creditsandliabilities"ontherespectivebalancesheets, consistentwithcurrentauthoritativeaccountingguidance.
TheamendedguidancewillnotaffecttheAmerenCompanies' resultsofoperationsorliquidity,asthisguidanceis presentation-relatedonly.Thisguidancewillbeeffectivefor theAmerenCompaniesbeginninginthefirstquarterof2014.AssetRetirementObligationsAuthoritativeaccountingguidancerequiresustorecordtheestimatedfairvalueoflegalobligationsassociatedwiththeretirementoftangiblelong-livedassets intheperiodinwhichtheliabilitiesareincurredandto capitalizeacorrespondingamountaspartofthebookvalue oftherelatedlong-livedasset.Insubsequentperiods,we arerequiredtomakeadjustmentstoAROsbasedon changesintheestimatedfairvaluesoftheobligations.
Correspondingincreasesinassetbookvaluesare depreciatedovertheremainingusefullifeoftherelated asset.Uncertaintiesastotheprobability,timing,oramount ofcashflowsassociatedwithAROsaffectourestimatesof fairvalue.AmerenandAmerenMissourihaverecorded AROsforretirementcostsassociatedwithAmeren Missouri'sCallawayenergycenterdecommissioningcosts, asbestosremoval,CCRstoragefacilities,andriver structures.Also,AmerenandAmerenIllinoishaverecorded AROsforretirementcostsassociatedwithasbestos removal.Inaddition,Ameren,AmerenMissouriand AmerenIllinoishaverecordedAROsforthedisposalof certaintransformers.Assetremovalcostsaccruedbyourrate-regulatedoperationsthatdonotconstitutelegalobligationsare classifiedasaregulatoryliability.SeeNote2-Rateand RegulatoryMatters.
91 ThefollowingtableprovidesareconciliationofthebeginningandendingcarryingamountofAROsfortheyearsendedDecember31,2013,and2012:
Ameren Missouri (a)Ameren Illinois (b)Ameren (a)BalanceatDecember31,2011..............................................................$328$3$331Liabilitiesincurred.....................................................................---Liabilitiessettled......................................................................(1)(c)(1)Accretionin2012 (d)....................................................................18(c)18Changeinestimates (e)..................................................................1(c)1BalanceatDecember31,2012..............................................................$346$3$349Liabilitiesincurred
.....................................................................---Liabilitiessettled
......................................................................(1)(c)(1)Accretionin2013 (d)....................................................................19(c)19Changeinestimates (e)..................................................................2(c)2BalanceatDecember31,2013
..............................................................$366$3$369(a)Thenucleardecommissioningtrustfundassetsof$494millionand$408millionasofDecember31,2013,and2012,respectively,arerestrictedfordecommissioningoftheCallawayenergycenter.(b)Balanceincludedin"Otherdeferredcreditsandliabilities"onthebalancesheet.(c)Lessthan$1million.
(d)AccretionexpensewasrecordedasanincreasetoregulatoryassetsatAmerenMissouriandAmerenIllinois.
(e)AmerenMissourichangeditsfairvalueestimatesforasbestosremovalin2012and2013,andforcertainCCRstoragefacilitiesin2013.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsforadditionalinformationontheAROsrelatedtotheabandonedMeredosiaandHutsonvilleenergycenters,whicharepresentedasdiscontinuedoperationsandthereforenotincludedinthetableabove.EmployeeSeparationChargesDuringthefourthquarterof2011,AmerenMissouriandAmerenServicesextendedvoluntaryseparationoffersconsistentwithAmeren'sstandardmanagementseparation programtoeligiblemanagementandlaborunion-representedemployees.Approximately340employeesof AmerenMissouriandAmerenServicesacceptedtheoffers andlefttheiremploymentbyDecember31,2011.Ameren andAmerenMissourirecordedapretaxchargetoearnings of$28millionand$27million,respectively,forthe severancecostsrelatedtotheseoffers.Thesechargeswere recordedin"Otheroperationsandmaintenance"expensein eachcompany'sstatementofincomefortheyearended December31,2011.Substantiallyalloftheseverancecosts werepaidinthefirstquarterof2012.Theseverancecosts relatedtoparticipatingAmerenServicesemployeeswere allocatedtoaffiliatesconsistentwiththetermsofits supportservicesagreement,whichisdescribedin Note14-RelatedPartyTransactions.NOTE2-RATEANDREGULATORYMATTERSBelowisasummaryofsignificantregulatoryproceedingsandrelatedlawsuits.Weareunabletopredicttheultimateoutcomeofthesematters,thetimingofthefinal decisionsofthevariousagenciesandcourts,ortheimpact onourresultsofoperations,financialposition,orliquidity.
MissouriFACPrudenceReviewInApril2011,theMoPSCissuedanorderwithrespecttoitsreviewofAmerenMissouri'sFACfortheperiodfromMarch1,2009,toSeptember30,2009.Inthisorder,the MoPSCruledthatAmerenMissourishouldhaveincludedin theFACcalculationallrevenuesandcostsassociatedwith certainlong-termpartialrequirementssalesthatweremade byAmerenMissouribecauseofthelossofNoranda'sload causedbyasevereicestorminJanuary2009.Asaresultof theorder,AmerenMissourirecordedapretaxchargeto earningsof$18million,including$1millionforinterest,in 2011foritsobligationtorefundtoitselectriccustomers theearningsassociatedwiththesesalespreviously recognizedbyAmerenMissouriduringtheperiodfrom March1,2009,toSeptember30,2009.InMay2012,upon appealbyAmerenMissouri,theColeCountyCircuitCourt reversedtheMoPSC'sApril2011order.InJune2012,the MoPSCandagroupoflargeindustrialcustomersfiledan appealoftheColeCountyCircuitCourt'srulingtothe MissouriCourtofAppeals,WesternDistrict.InMay2013, theMissouriCourtofAppealsupheldtheMoPSC'sApril 2011orderandreversedtheColeCountyCircuitCourt's May2012decision.AmerenMissouri'sFACcalculationfortheperiodfromOctober1,2009,toMay31,2011,excludedallrevenues andcostsassociatedwithcertainlong-termpartial requirementssalesthatweremadebyAmerenMissouri becauseofthelossofNoranda'sloadcausedbyasevere icestorminJanuary2009,similartotheFACcalculationfor theperiodfromMarch1,2009,toSeptember30,2009.The MoPSCissuedanorderinJuly2013,whichwassimilarto 92 theMoPSC'sApril2011order,asaresultofwhichAmerenMissourirecordedapretaxchargetoearningsof
$26million,including$1millionforinterest,in2013forits estimatedobligationtorefundtoAmerenMissouri'selectric customerstheearningsassociatedwiththesesales previouslyrecognizedbyAmerenMissourifortheperiod fromOctober1,2009,toMay31,2011.AmerenMissouri recordedthechargeto"OperatingRevenues-Electric"and therelatedinterestto"InterestCharges"witha correspondingoffsetto"Currentregulatoryliabilities."No similarrevenueswereexcludedfromFACcalculationsafter May2011.Separately,inJuly2011,AmerenMissourifiledarequestwiththeMoPSCforanaccountingauthorityorder thatwouldallowAmerenMissouritodeferfixedcosts totaling$36millionthatwerenotpreviouslyrecoveredfrom Norandaasaresultofthelossofloadcausedbythesevere 2009icestormforpotentialrecoveryinafutureelectricrate case.InNovember2013,theMoPSCissuedanorder approvingAmerenMissouri'srequestforanaccounting authorityorder.AmerenMissouriwillseektorecoverthese fixedcostsinitsnextelectricratecase.InFebruary2014, MIECfiledanappealoftheaccountingauthorityorderto theMissouriCourtofAppeals,WesternDistrict.2012ElectricRateOrderInDecember2012,theMoPSCissuedanorderapprovinganincreaseforAmerenMissouriinannualrevenuesforelectricserviceof$260million.Therevenue increasewasbasedona9.8%returnonequity,acapital structurecomposedof52.3%commonequity,andarate baseof$6.8billion.Ratechangesconsistentwiththeorder becameeffectiveonJanuary2,2013.InJanuary2013, AmerenMissouriappealedtheorderwithrespecttothe amountofpropertytaxesincludedintheordertothe MissouriCourtofAppeals,WesternDistrict.Laterin2013, AmerenMissouriwithdrewthisappeal.InFebruary2013, theMoOPC,MIEC,andotherpartiesfiledseparateappeals totheMissouriCourtofAppeals,WesternDistrict,relating totheorder'streatmentoftransmissioncostsintheFAC.In October2013,theMissouriCourtofAppeals,Western District,upheldtheorder.MoOPC,MIEC,andotherparties filedarequesttotransfertheirappealtotheMissouri SupremeCourt,whichwassubsequentlydenied.MEEIAOrderTheMoPSC'sDecember2012electricrateorderapprovedAmerenMissouri'simplementationofMEEIAmegawatthoursavingstargets,energyefficiencyprograms, andassociatedcostrecoverymechanismsandincentive awards.AMEEIAriderallowsAmerenMissouritocollect fromorrefundtocustomersanyannualdifferenceinthe actualamountsincurredandtheprojectedamounts collectedfromcustomersfortheMEEIAprogramcostsand itsprojectedlostrevenues.Inadditiontotheprogramcostsandlostrevenuesdiscussedabove,thetermsofAmerenMissouri'sMoPSC-approvedMEEIAprogramsofferanincentiveawardthat wouldallowAmerenMissouritoearnadditionalrevenues byachievingcertainenergyefficiencygoals,includingapproximately$19millionif100%ofitsenergyefficiency goalsareachievedduringthethree-yearperiod,withthe potentialtoearnmoreifAmerenMissouri'senergysavings exceedthosegoals.AmerenMissourimustachieveatleast 70%ofitsenergyefficiencygoalsbeforeitearnsany incentiveaward.Therecoveryofanincentiveawardfrom customers,iftheenergyefficiencygoalsareachieved,is expectedin2017throughtheabove-mentionedrider.RateDesignandEarningsComplaintCasesOnFebruary13,2014,AmerenMissouri'slargestcustomer,Noranda,and37residentialcustomersfiledanearningscomplaintcaseandaratedesigncomplaintcase withtheMoPSC.Intheearningscomplaintcase,Noranda andtheresidentialcustomersassertedthatAmeren Missouri'selectricdeliveryservicebusinessisearningmore thanthe9.8%returnonequityauthorizedintheMoPSC's December2012electricrateorderandrequestedthe MoPSCtoapproveareductionoftheauthorizedreturnon equityto9.4%.Theratedesigncomplaintcaseseeksto reduceNoranda'selectricitycostwithanoffsettingincrease inelectricitycostforAmerenMissouri'sothercustomers.
TheratedesigncomplaintcaseaskstheMoPSCtoexpedite itsdecisionandgrantreliefbyAugust1,2014.TheMoPSChasorderedAmerenMissouritofilearesponsetothesetwocomplaintsbyMarch17,2014.The MoPSChasnotimerequirementbywhichitmustissuean orderinthesecases.AmerenMissouriopposesboth requestsfiledbyNorandaandtheresidentialcustomersand willvigorouslydefenditself.
Illinois IEIMAUndertheprovisionsoftheIEIMA,AmerenIllinois'electricdeliveryservicerateseffectiveforcustomers'billingsin2013weresubjecttoanannualrevenue requirementreconciliationtoitsactual2013costs.The 2013revenuerequirementreconciliationwillbefiledwith theICCin2014.Theapprovedannualrevenuerequirement reconciliationadjustmentrelatingto2013willbereflected incustomerratesbeginninginJanuary2015.Throughout theyear,AmerenIllinoisrecordsaregulatoryassetora regulatoryliabilityandacorrespondingincreaseor decreasetooperatingrevenuesforanydifferencesbetween therevenuerequirementineffectforthatyearandits estimateoftheprobableincreaseordecreaseintherevenue requirementexpectedtoultimatelybeapprovedbytheICC basedonthatyear'sactualcostsincurred.Asof December31,2013,AmerenIllinoisrecordeda$65million regulatoryassettoreflectitsexpected2013revenue requirementreconciliationadjustment,whichwillbe recoveredfromcustomersin2015.AmerenIllinoisalso recordedaregulatoryliabilityof$65millionand$55million asofDecember31,2013,andDecember31,2012, respectively,toreflectits2012revenuerequirement reconciliationadjustment,withinterest,whichwillbe refundedtocustomersin2014.
93 InMay2013,IllinoisenactedintolawcertainamendmentstotheIEIMAthatmodifieditsimplementation.ThelawclarifiedthattheIEIMArequiresthattheyear-end ratebasemustbeusedtocalculatetherevenue requirementreconciliationandthattheinterestappliedto therevenuerequirementreconciliationandreturnonequity collaradjustmentsmustbeequaltoacompany'sweighted-averagereturncalculatedundertheformularate.InSeptember2012,theICCissuedanorderinAmerenIllinois'initialfilingundertheIEIMA'sperformance-based formularateframework,whichAmerenIllinoisappealedto theAppellateCourtoftheFourthDistrictofIllinois.In December2012,theICCissuedanorderinAmerenIllinois' updatefilingapprovinganAmerenIllinoiselectricdelivery servicerevenuerequirementof$765million,basedon 2011recoverablecostsandexpectednetplantadditionsin 2012.Thedeliveryserviceratesbecameeffectiveon January1,2013.InJanuary2013,AmerenIllinoisfiledan appealoftheICC'supdatefilingordertotheAppellateCourt oftheFourthDistrictofIllinois.Bothorderswere consolidatedforappealwiththeprimaryissuesbeingthe treatmentofaccumulateddeferredincometaxesand vacationobligationsaswellasthecalculationofAmeren Illinois'capitalstructure.InDecember2013,theappellate courtrendereditsdecisionupholdingtheICC'sSeptember andDecember2012orders.AmerenIllinoisexpectstofile anappealtotheIllinoisSupremeCourtinMarch2014.InDecember2013,theICCissuedanorderinAmerenIllinois'annualupdatefiling,whichwasbasedon2012 recoverablecostsandexpectednetplantadditionsfor 2013,approvinganAmerenIllinoiselectricdeliveryservice revenuerequirementof$788million,beforeconsideration ofthe2012revenuerequirementreconciliationrefund.The ICCorderresultedinanet$45milliondecreaseinAmeren Illinois'electricdeliveryservicerevenuerequirement.The calculationincludedarefundtocustomersofthe2012 revenuerequirementreconciliationof$68million,which includedanestimateforinterestthroughtheendof2014.
However,thisrefundispartiallyoffsetbyanannualrevenue requirementincreaseof$23millionprimarilyduetohigher recoverablecostsin2012comparedto2011.TheICCorder establishesratesforallof2014.InJanuary2014,Ameren IllinoisfiledarequestforrehearingwiththeICCregarding theelectricdeliveryservicerateorder,whichtheICC denied.InFebruary2014,AmerenIllinoisfiledanappeal withtheAppellateCourtoftheFourthDistrictofIllinois regardingthecalculationofitscapitalstructureandthe treatmentofaccumulateddeferredincometaxesrelatedto thetransferofformerAmerenMissouriassetsinIllinoisto AmerenIllinois.IntheDecember2013order,theICCdisallowed,inpart,therecoveryfromcustomersofthedebtpremium costspaidbyAmerenIllinoisforatenderofferinAugust 2012torepurchaseoutstandingseniorsecurednotes.At thetimeofthetenderoffer,AmerenIllinoisrecordedthis lossonthereacquireddebtasaregulatoryasset.Asa resultoftheICCorder,AmerenandAmerenIllinoiseach recordedin2013apretaxchargetoearningsof$15millionrelatingtothepartialdisallowanceofthepremiumcosts.
Thischargewasrecordedinthestatementofincomefor AmerenandAmerenIllinoisas"Interestcharges"witha correspondingdecreaseto"Regulatoryassets."2013NaturalGasDeliveryServiceRateOrderInDecember2013,theICCissuedarateorderthatapprovedanincreaseinrevenuesfornaturalgasdeliveryserviceof$32million.Therevenueincreasewasbasedona 9.1%returnonequity,acapitalstructurecomposedof 51.7%commonequity,andaratebaseof$1.1billion.The rateorderwasbasedona2014futuretestyear.Therate changesbecameeffectiveJanuary1,2014.InJanuary 2014,AmerenIllinoisfiledarequestforrehearingwiththe ICCregardingthenaturalgasdeliveryservicerateorder, whichtheICCdenied.AmerenIllinoisexpectstofilean appealoftheICC'sorderinMarch2014.SimilartotheDecember2013electricrateorderdiscussedabove,thisnaturalgasrateorderincludeda partialdisallowancerelatingtotheAugust2012costsfor thetenderoffertorepurchaseoutstandingseniorsecured notes.Thepretaxlossof$15milliondiscussedabove includestheimpactofboththeDecember2013ICCelectric andnaturalgasdeliveryservicerateorders.NaturalGasConsumer,SafetyandReliabilityActInJuly2013,IllinoisenactedtheNaturalGasConsumer,SafetyandReliabilityAct,whichencouragesIllinoisnaturalgasutilitiestoacceleratemodernizationof thestate'snaturalgasinfrastructureandprovidesadditional ICCoversightofnaturalgasutilityperformance.Thelaw allowsnaturalgasutilitiestheoptiontofilefor,andrequires theICCtoapprove,arateridermechanismtorecovercosts ofcertainnaturalgasinfrastructureinvestmentsmade betweenratecases.Thelawdoesnotrequireaminimum levelofinvestment.AmerenIllinoisexpectstobegin includinginvestmentsunderthisregulatoryframeworkin 2015.AmerenIllinois'decisiontoacceleratemodernization ofitsnaturalgasinfrastructureunderthisregulatory frameworkisdependentuponmultipleconsiderations, includingtheallowedreturnonequityunderthisframework comparedwithotherAmerenandAmerenIllinois investmentoptions.ATXITransmissionProjectATXI'sIllinoisRiversprojectisaMISO-approvedprojecttobuilda345-kilovoltlinefromwesternIndianaacrossthestateofIllinoistoeasternMissouriatan estimatedcostof$1.1billion.InAugust2013,theICC grantedacertificateofpublicconvenienceandnecessity andapprovedsevenofatotalofninesectionsoftheroute andthreeoftheproposedninesubstationsfortheIllinois Riversproject.TheICCorderindicatedtheprojectis necessarytoaddresstransmissionandreliabilityneedsin anefficientandequitablemannerandthattheprojectwill benefitthedevelopmentofacompetitiveelectricitymarket.
TheorderalsoindicatedthatATXIiscapableof constructing,managingandfinancingtheproject.In 94 October2013,theICCgrantedATXI'srequestforarehearingtoconsideradditionalevidenceregardingthetwo segmentsoftherouteandsixsubstationsthatwerenot approved,aswellastherequestsforrehearingofcertain otherpartiesregardingtwooftheapprovedsegmentsof theroute.InFebruary2014,theICCissuedafinalorderon rehearingapprovingtheremainingsubstationsandroutes fortheIllinoisRiversproject.
Federal2011WholesaleDistributionRateCaseInJanuary2011,AmerenIllinoisfiledarequestwithFERCtoincreaseitsannualrevenuesforelectricdeliveryserviceforitswholesalecustomers.Thesewholesale distributionrevenuesaretreatedasadeductionfrom AmerenIllinois'revenuerequirementinretailratefilings withtheICC.InMarch2011,FERCissuedanorder authorizingtheproposedratestotakeeffect,subjectto refundwhenthefinalratesaredetermined.AmerenIllinois reachedanagreementwithfourofitsninewholesale customers.FERChasapprovedthesesettlement agreements,andanyrefundobligationsrelatedtheretohave beenmade.Theimpassewiththeremainingfivewholesale customershasresultedinFERClitigation.InNovember 2012,aFERCadministrativelawjudgeissuedaninitial decision,whichisnowpendingbeforeFERC.Thetimingof aFERCdecisionisuncertain.Inaccordancewiththe administrativelawjudge'sinitialdecision,Amerenand AmerenIllinoishavebothincludedontheirbalancesheets in"Currentregulatoryliabilities"anestimateof$13million and$8millionasofDecember31,2013,andDecember31, 2012,respectively,fortherefundduetowholesale customersrelatingtobillingsfortheperiodfromMarch 2011throughDecember2013.AmerenIllinoisElectricTransmissionRateRefundInJuly2012,FERCissuedanorderconcludingthatAmerenIllinoisimproperlyincludedacquisitionpremiums,primarilygoodwill,indeterminingthecommonequityused initselectrictransmissionformularate,andthereby inappropriatelyrecoveredahigheramountfromitselectric transmissioncustomers.TheorderrequiredAmerenIllinois tomakerefundstocustomersforsuchimproperlyincluded amounts.InAugust2012,AmerenIllinoisfiledarequestfor arehearingofthisorder.ItisunknownwhenFERCwillrule onAmeren'srehearingrequest,asitisundernodeadlineto doso.AmerenIllinoissubmittedarefundreportinNovember2012andconcludedthatnorefundwaswarranted.Several wholesalecustomersfiledaprotestwithFERCregarding Ameren'sconclusionthatnorefundwaswarranted.InJune 2013,FERCissuedanorderthatrejectedAmerenIllinois' November2012refundreportandprovidedguidanceasto thefilingofanewrefundreport.InJuly2013,Ameren Illinoisfiledarevisedrefundreportbasedontheguidance providedintheJune2013order,aswellasarequestfora rehearingofthatorder.AmerenIllinois'July2013refund reportalsoconcludedthatnorefundwaswarranted.AmerenIllinoisestimatedthemaximumpretaxchargeto earningsforthispossiblerefundobligationthrough December31,2013,wouldbe$15million,beforeinterest charges.IfAmerenIllinoisweretodeterminethatarefund toitselectrictransmissioncustomersisprobable,acharge toearningswouldberecordedfortherefundintheperiod inwhichthatdeterminationwasmade.FERCComplaintCaseInNovember2013,acustomergroupfiledacomplaintcasewithFERCseekingareductionintheallowedreturnoncommonequity,aswellasalimitonthecommonequity ratio,undertheMISOtariff.Currently,theFERC-allowed returnoncommonequityforMISOtransmissionownersis 12.38%.Thiscomplaintcasecouldresultinareductionto AmerenIllinois'andATXI'sallowedreturnoncommon equity.Thatreductioncouldalsoresultinarefundfor transmissionservicerevenuesearnedafterthefilingofthe complaintcaseinNovember2013.FERChasnotissuedan orderinthiscase,anditisundernodeadlinetodoso.
AmerenisnotabletopredictwhenorhowFERCwillruleon thiscomplaintcase.AmerenMissouriPowerPurchaseAgreementwithEntergyBeginningin2005,FERCissuedaseriesofordersaddressingacomplaintfiledin2001bytheLouisianaPublicServiceCommission(LPSC)againstEntergyandcertainof itsaffiliates.Thecomplaintallegedunjustandunreasonable costallocations.AsaresultoftheFERCorders,Entergy beganbillingAmerenMissouriin2007foradditional chargesundera165-megawattpowerpurchaseagreement, whichexpiredAugust31,2009.InMay2012,FERCissued anorderstatingthatEntergyshouldnothaveincluded additionalchargestoAmerenMissouriunderthepower purchaseagreement.Pursuanttotheorder,inJune2012, EntergypaidAmerenMissouri$31million,with$24million recordedasareductionto"Purchasedpower"expenseand
$5millionforinterestrecordedas"Miscellaneousincome" inthestatementofincome.Theremaining$2millionwas recordedasanoffsettotheFACunder-recoveredregulatory assetfortheamountrefundabletocustomers.Theamount oftheEntergyrefundrecordedtotheFACregulatoryasset relatedtotheperiodwhentheFACwaseffective;therefore, suchcostswerepreviouslyincludedincustomerrates.In July2012,EntergyfiledanappealofFERC'sJanuary2010 andMay2012orderstotheUnitedStatesCourtofAppeals fortheDistrictofColumbiaCircuit,whichwassubsequently dismissedonaproceduralissue.InNovember2013, EntergyrefiledtheappealofFERC'sMay2012orderwith theUnitedStatesCourtofAppealsfortheDistrictof ColumbiaCircuit.Amerenisnotabletopredictwhenor howthecourtwillruleonEntergy'sappeal.TheLPSCappealedFERC'sordersregardingLPSC'scomplaintagainstEntergyServices,Inc.totheUnited StatesCourtofAppealsfortheDistrictofColumbiaCircuit.
InApril2008,thatcourtorderedfurtherFERCproceedings regardingLPSC'scomplaint.ThecourtorderedFERCto explainitspreviousdenialofretroactiverefundsandthe implementationofprospectivecharges.FERC'sdecisionon 95 remandoftheretroactiveimpactoftheseissuescouldhaveafinancialimpactonAmerenMissouri.AmerenMissouriis unabletopredictwhenorhowFERCwillrespondtothe court'sdecisions.AmerenMissouriestimatesthatitcould incuranadditionalexpenseofupto$25millionifFERC ordersretroactiveapplicationfortheyears2001to2005.
AmerenMissouribelievesthatthelikelihoodofincurring anyexpenseisnotprobable,andthereforenoliabilityhas beenrecordedasofDecember31,2013.CombinedConstructionandOperatingLicenseIn2008,AmerenMissourifiledanapplicationwiththeNRCforaCOLforanewnuclearunitatAmerenMissouri'sexistingCallawayCounty,Missouri,energycentersite.In 2009,AmerenMissourisuspendeditseffortstobuildanew nuclearunitatitsexistingMissourinuclearenergycenter site,andtheNRCsuspendedreviewoftheCOLapplication.InMarch2012,theDOEannouncedtheavailabilityofinvestmentfundsforthedesign,engineering, manufacturing,andsaleofAmerican-madesmallmodular nuclearreactors.InApril2012,AmerenMissourientered intoanexclusiveagreementtosupportWestinghouse's applicationforthefirstinstallmentofDOE'ssmallmodular nuclearreactorinvestmentfunds.TheDOEinvestment fundingisintendedtosupportengineeringanddesign certificationsandaCOLforuptotwosmallmodularreactor designsoverfiveyears.ACOLisissuedbytheNRCto permitconstructionandoperationofanuclearenergy centerataspecificsiteinaccordancewithestablishedlaws andregulations.ObtainingaCOLfromtheNRCwouldnot obligateAmerenMissouritobuildasmallmodularreactor attheCallawaysite;however,itwouldpreservetheoption tomoveforwardinatimelyfashionshouldconditionsbe righttobuildasmallmodularreactorinthefuture.ACOLis validforatleast40years.InNovember2012,theDOE awardedthefirstinstallmentofinvestmentfundsforonlyonesmallmodularreactordesign,whichwasnotthe Westinghousedesign.TheDOEstatedthatasecond installmentofinvestmentfundswouldbeawardedduring 2013.InDecember2013,theDOEdidnotaward Westinghousethesecondinstallmentofinvestmentfunds.
AmerenMissouri'sagreementtoexclusivelysupport Westinghouse'sapplicationexpiredinJanuary2014.AmerenMissouriestimatedthetotalcostthatwouldberequiredtoobtainthesmallmodularreactorCOLtobe
$80millionto$100million.AsofDecember31,2013, AmerenMissourihadcapitalizedinvestmentsof$69million forthedevelopmentofanewnuclearenergycenter.
Amereniscurrentlyevaluatingallpotentialnuclear technologiesinordertomaintainanoptionfornuclear powerinthefuture.AllofAmerenMissouri'scapitalizedinvestmentsforthedevelopmentofanewnuclearenergycenterwillremain capitalizedwhilemanagementpursuesoptionstomaximize thevalueofitsinvestment.Ifeffortstolicenseadditional nucleargenerationareabandonedormanagement concludesitisprobablethecostsincurredwillbe disallowedinrates,achargetoearningswouldbe recognizedintheperiodinwhichthatdeterminationis
made.Pumped-storageHydroelectricEnergyCenterRelicensingInJune2008,AmerenMissourifiledarelicensingapplicationwithFERCtooperateitsTaumSaukpumped-storagehydroelectricenergycenterforanother40years.
TheexistingFERClicenseexpiredonJune30,2010.InJuly 2010,AmerenMissourireceivedalicenseextensionthat allowsTaumSauktocontinueoperationsuntilFERCissues anewlicense.AFERCorderisexpectedin2014.Ameren MissouricannotpredicttheultimateoutcomeofFERC's reviewoftheapplication.
96 RegulatoryAssetsandLiabilitiesInaccordancewithauthoritativeaccountingguidanceregardingaccountingfortheeffectsofcertaintypesofregulation,AmerenMissouriandAmerenIllinoisdefercertaincostsasregulatoryassetspursuanttoactionsofregulatorsorbasedontheexpectedabilitytorecoversuchcostsinrateschargedtocustomers.AmerenMissouriandAmerenIllinoisalsodefercertain amountsasregulatoryliabilitiesbecauseofactionsofregulatorsorbecauseoftheexpectationthatsuchamountswillbe returnedtocustomersinfuturerates.ThefollowingtablepresentsAmeren's,AmerenMissouri'sandAmerenIllinois' regulatoryassetsandregulatoryliabilitiesatDecember31,2013,and2012:
2013 2012 Ameren Missouri AmerenIllinoisAmeren Ameren Missouri AmerenIllinoisAmerenCurrentregulatoryassets:Under-recoveredFAC (a)(b)...............................$104$-$104$145$-$145Under-recoveredIllinoiselectricpowercosts (c)..............-11---Under-recoveredPGA (c)................................-115712MTMderivativelosses (d)................................143650137790Totalcurrentregulatoryassets
.............................$118$38$156$163$84$247Noncurrentregulatoryassets:Pensionandpostretirementbenefitcosts (e).................$44$140$184$348$424$772Incometaxes (f).......................................23072372314235Assetretirementobligations (g)...........................-55-55Callawaycosts (a)(h)....................................40-4044-44Unamortizedlossonreacquireddebt (a)(i)...................777415181100181Recoverablecosts-contaminatedfacilities (j)................-271271-248248MTMderivativelosses (d)................................81181267128135Stormcosts (k)........................................5389-9Demand-sidecostsbeforeMEEIAimplementation (a)(l).........58-5873-73Reserveforworkers'compensationliabilities (m).............66126612Creditfacilitiesfees (n)..................................5-56-6Commonstockissuancecosts (o).........................4-47-7Constructionaccountingforpollutioncontrolequipment (a)(p)...22-2223-23Solarrebateprogram (a)(q)...............................27-275-5IEIMArevenuerequirementreconciliation (r).................-6565---Other (s)(t)............................................81225121931Totalnoncurrentregulatoryassets
..........................$534$701$1,240$852$934$1,786Currentregulatoryliabilities:Over-recoveredFAC (b).................................$26$-$26$-$-$-Over-recoveredIllinoiselectricpowercosts (c)...............-5151-5858Over-recoveredPGA (c).................................52934-1515MTMderivativegains (d)................................2612718119Wholesaledistributionrefund (u)..........................-1313-88IEIMArevenuerequirementreconciliation (r).................-6565---Totalcurrentregulatoryliabilities
...........................$57$159$216$18$82$100Noncurrentregulatoryliabilities:Incometaxes (v).......................................$38$3$41$42$4$46Removalcosts (w).....................................8286101,4387665811,347Assetretirementobligation (g)............................146-14680-80MTMderivativegains (d)................................1-12-2Baddebtriders (x).....................................-88-1212Pensionandpostretirementbenefitcoststracker (y)...........15-1523-23Energyefficiencyriders (z)...............................33336-2020IEIMArevenuerequirementreconciliation (r).................----5555FERCtransmissionrevenuerequirementreconciliation (aa)......-1010---Other (ab)............................................10-104-4Totalnoncurrentregulatoryliabilities
........................$1,041$664$1,705$917$672$1,589(a)Theseassetsearnareturn.(b)Under-recoveredorover-recoveredfuelcoststoberecoveredthroughtheFAC.Specificaccumulationperiodsaggregatetheunder-recoveredorover-recoveredcostsoverfourmonths,anyrelatedadjustmentsthatoccuroverthefollowingfourmonths,andtherecoveryfrom customersthatoccursoverthenexteightmonths.(c)Costsunder-orover-recoveredfromutilitycustomers.Amountswillberecoveredfrom,orrefundedto,customerswithinoneyearofthe deferral.(d)Deferralofcommodity-relatedderivativeMTMlossesorgains.SeeNote7-DerivativeFinancialInstrumentsforadditionalinformation.
97 (e)Thesecostsarebeingamortizedinproportiontotherecognitionofpriorservicecosts(credits),transitionobligations(assets),andactuariallosses(gains)attributabletoAmeren'spensionplanandpostretirementbenefitplans.SeeNote11-RetirementBenefitsforadditional information.(f)Offsettocertaindeferredtaxliabilitiesforexpectedrecoveryoffutureincometaxeswhenpaid.Thiswillberecoveredovertheexpectedlifeoftherelatedassets.(g)RecoverableorrefundableremovalcostsforAROs,includingnetrealizedandunrealizedgainsandlossesrelatedtothenucleardecommissioningtrustfundinvestments.SeeNote1-SummaryofSignificantAccountingPolicies-AssetRetirementObligations.(h)AmerenMissouri'sCallawayenergycenteroperationsandmaintenanceexpenses,propertytaxes,andcarryingcostsincurredbetweentheplantin-servicedateandthedatetheplantwasreflectedinrates.Thesecostsarebeingamortizedovertheremaininglifeoftheenergycenter's currentoperatinglicense,whichexpiresin2024.(i)Lossesrelatedtoreacquireddebt.Theseamountsarebeingamortizedoverthelivesoftherelatednewdebtissuancesortheoriginallivesoftheolddebtissuancesifnonewdebtwasissued.(j)TherecoverableportionofaccruedenvironmentalsiteliabilitiesthatwillbecollectedfromelectricandnaturalgascustomersthroughICC-approvedcostrecoveryriders.Theperiodofrecoverywilldependonthetimingofremediationexpenditures.SeeNote15-Commitments andContingenciesforadditionalinformation.(k)ActualstormcostsinatestyearthatexceedtheMoPSCstaff'snormalizedstormcostsforratepurposes.AsapprovedbytheDecember2012MoPSCelectricrateorder,the2006,2007,and2008stormcostsarebeingamortizedthroughDecember2014.AsapprovedbytheMay2010 MoPSCelectricrateorder,the2009stormcostsarebeingamortizedthroughJune2015.TheAmerenIllinoistotalincludes2013stormcosts deferredinaccordancewiththeIEIMA.Thesecostsarebeingamortizedoverafive-yearperiodbeginningin2013.(l)Demand-sidecostsincurredpriortoimplementationoftheMEEIAin2013,includingthecostsofdeveloping,implementingandevaluatingcustomerenergyefficiencyanddemandresponseprograms.CostsincurredfromMay2008throughSeptember2008arebeingamortizedover a10-yearperiodthatbeganinMarch2009.CostsincurredfromOctober2008throughDecember2009arebeingamortizedoverasix-year periodthatbeganinJuly2010.CostsincurredfromJanuary2010throughFebruary2011arebeingamortizedoverasix-yearperiodthatbegan inAugust2011.CostsincurredfromMarch2011throughJuly2012arebeingamortizedoverasix-yearperiodthatbeganinJanuary2013.(m)Reserveforworkers'compensationclaims.Theperiodofrecoverywilldependonthetimingofactualexpenditures.
(n)AmerenMissouri'scostsincurredtoenterintoandmaintainthe2012AmerenMissouriCreditAgreement.Thesecostsarebeingamortizedoverfiveyears,beginninginNovember2012.Thesecostsarebeingamortizedtoconstructionworkinprogress,whichwillbedepreciated whenassetsareplacedintoservice.(o)TheMoPSC'sMay2010electricrateorderallowedAmerenMissouritorecoveritsportionofAmeren'sSeptember2009commonstockissuancecosts.Thesecostsarebeingamortizedoverfiveyears,beginninginJuly2010.(p)TheMoPSC'sMay2010electricrateorderallowedAmerenMissouritorecordanallowanceforfundsusedduringconstructionforpollutioncontrolequipmentatitsSiouxenergycenteruntilthecostofthatequipmentcouldbeincludedincustomerrates.Thesecostswillbeamortized overtheexpectedlifeoftheSiouxenergycenter,whichiscurrentlythrough2033.(q)CostsassociatedwithAmerenMissouri'ssolarrebateprogrambeginninginAugust2012tofulfillAmerenMissouri'srenewableenergyportfoliorequirement.Theamortizationperiodforthesecostswillbethreeyears,commencingwiththenextAmerenMissourielectricratecase
order.(r)TheassetbalancerelatestothedifferencebetweenAmerenIllinois'2013revenuerequirementcalculatedundertheIEIMA'sperformance-basedformularatemakingframework,andtherevenuerequirementincludedincustomerratesfor2013.SubjecttoICCapproval,thisassetwillbe collectedfromcustomersin2015.TheliabilitybalancerelatestothedifferencebetweenAmerenIllinois'2012revenuerequirementcalculated undertheIEIMA'sperformance-basedformularatemakingframeworkandtherevenuerequirementincludedincustomerratesfor2012.This liabilitywillberefundedtocustomersin2014.(s)TheAmerenIllinoistotalincludesAmerenIllinoisMergerintegrationandoptimizationcosts,whichareamortizedoverfouryears,beginninginJanuary2012.TheAmerenIllinoistotalalsoincludescostsrelatedtothe2013naturalgasdeliveryserviceratecasecosts,whicharebeing amortizedoveratwo-yearperiodthatbeganinJanuary2014.TheAmerenIllinoistotalalsoincludesaportionoftheunamortizeddebtfair valueadjustmentrecordeduponAmeren'sacquisitionofIP.Thisportionisbeingamortizedovertheremaininglifeoftherelateddebt.At AmerenMissouri,thebalanceprimarilyincludesthecostofrenewableenergycreditstofulfillitsrenewableenergyportfoliorequirement.Costs incurredfromJanuary2010throughJuly2012arebeingamortizedoverthreeyears,beginninginJanuary2013.(t)TheAmerentotalincludes$5millionforATXI'srevenuerequirementreconciliationadjustmentsfor2012and2013calculatedpursuanttotheFERC'selectrictransmissionformularatemakingframework.Theseadjustmentswillbecollectedfromcustomersin2014forthe2012revenue requirementreconciliationandin2015forthe2013revenuerequirementreconciliation.(u)Estimatedrefundtowholesaleelectriccustomers.See2011WholesaleDistributionRateCaseabove.
(v)Unamortizedportionofinvestmenttaxcredits,federalexcessdeferredtaxes,anduncertaintaxpositiontracker.Thetrackerisbeingamortizedoverthreeyears,beginninginJanuary2013.Theunamortizedportionofinvestmenttaxcreditisbeingamortizedovertheexpectedlifeofthe underlyingassets.(w)Estimatedfundscollectedfortheeventualdismantlingandremovalofplantfromservice,netofsalvagevalue,uponretirementrelatedtoourrate-regulatedoperations.(x)AregulatorytrackingmechanismforthedifferencebetweenthelevelofbaddebtexpenseincurredbyAmerenIllinoisunderGAAPandthelevelofsuchcostsincludedinelectricandnaturalgasrates.Theover-recoveryrelatingto2011wasrefundedtocustomersfromJune2012through May2013.Theover-recoveryrelatingto2012isbeingrefundedtocustomersfromJune2013throughMay2014.Theover-recoveryrelatingto 2013willberefundedtocustomersfromJune2013throughMay2014.(y)AregulatorytrackingmechanismforthedifferencebetweenthelevelofpensionandpostretirementbenefitcostsincurredbyAmerenMissouriunderGAAPandthelevelofsuchcostsbuiltintorates.ForperiodspriortoAugust2012,theMoPSC'sDecember2012electricrateorder directedtheamortizationtooccuroverfiveyears,beginninginJanuary2013.ForperiodsafterAugust2012,theamortizationperiodwillbe determinedinafutureAmerenMissourielectricratecase.(z)TheAmerenIllinoisbalancerelatesitsregulatorytrackingmechanismtorecoveritselectricandnaturalgascostsassociatedwithdeveloping,implementing,andevaluatingcustomerenergyefficiencyanddemandresponseprograms.Thisover-recoverywillberefundedtocustomers 98 overthefollowing12monthsaftertheplanyear.TheAmerenMissouribalancerelatestoitsMEEIAprogramcostsincurredandprojectedlostrevenuescomparedtotheamountpreviouslycollectedfromcustomers.BeginninginJanuary2014,aMEEIAriderallowsAmerenMissourito collectfromorrefundtocustomersanyannualdifferenceintheactualamountsincurredandtheprojectedamountscollectedfromcustomers fortheMEEIAprogramcostsanditsprojectedlostrevenues.UndertheMEEIArider,collectionsfromorrefundstocustomersoccuroneyear aftertheprogramcostsandprojectedlostrevenuesareincurred.(aa)AmerenIllinois'2013revenuerequirementreconciliationadjustmentcalculatedpursuanttotheFERC'selectrictransmissionformularatemakingframework.Thisliabilitywillberefundedtocustomersin2015.(bb)BalanceprimarilyincludesthecostsofrenewableenergycreditstofulfillAmerenMissouri'srenewableenergyportfoliorequirementfromAugust2012throughDecember2013,whichwerelessthantheamountincludedinrates.Theamortizationperiodforthisover-recoverywillbe determinedinafutureAmerenMissourielectricratecase.AmerenMissouriandAmerenIllinoiscontinuallyassesstherecoverabilityoftheirregulatoryassets.Undercurrentaccountingstandards,regulatoryassetsarechargedtoearningswhenitisnolongerprobablethatsuchamountswillberecoveredthroughfuturerevenues.Totheextentthatpaymentsofregulatoryliabilitiesarenolongerprobable,theamounts arecreditedtoearnings.NOTE3-PROPERTYANDPLANT,NETThefollowingtablepresentspropertyandplant,net,foreachoftheAmerenCompaniesatDecember31,2013,and2012:
Ameren Missouri (a)AmerenIllinoisOtherAmeren (a)(b)2013Propertyandplant,atoriginalcost:
Electric................................................................$15,964$5,426$336$21,726Naturalgas
............................................................4131,562-1,97516,3776,98833623,701Less:Accumulateddepreciationandamortization
.................................6,7661,6272518,6449,6115,3618515,057Constructionworkinprogress:Nuclearfuelinprocess
...................................................246--246 Other.................................................................59522879902Propertyandplant,net
.....................................................$10,452$5,589$164$16,205 2012Propertyandplant,atoriginalcost:
Electric................................................................$15,638$4,985$319$20,942Naturalgas............................................................3931,461-1,85416,0316,44631922,796Less:Accumulateddepreciationandamortization
.................................6,6141,4952378,3469,4174,9518214,450Constructionworkinprogress:Nuclearfuelinprocess...................................................317--317 Other.................................................................42710153581Propertyandplant,net.....................................................$10,161$5,052$135$15,348(a)AmountsinAmerenandAmerenMissouriincludetwoelectricgenerationCTsunderseparatecapitalleaseagreements.Thegrosscumulativeassetvalueofthoseagreementswas$228millionatDecember31,2013,and$228millionatDecember31,2012.ThetotalaccumulateddepreciationassociatedwiththetwoCTswas$56millionand$52millionatDecember31,2013,and2012,respectively.Inaddition,Ameren Missourihasinvestmentsindebtsecurities,whichwereclassifiedasheld-to-maturity,relatedtothetwoCTsfromthecityofBowlingGreen andAudrainCounty.AsofDecember31,2013,and2012,thecarryingvalueofthesedebtsecuritieswas$299millionand$304million, respectively.(b)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.
99 ThefollowingtableprovidesaccruedcapitalandnuclearfuelexpendituresatDecember31,2013,2012,and2011,whichrepresentnoncashinvestingactivityexcludedfromtheaccompanyingstatementsofcashflows:
Ameren (a)Ameren Missouri Ameren IllinoisAccruedcapitalexpenditures:
2013...................................................................................$175$74$86 2012...................................................................................1076337 2011...................................................................................977318Accruednuclearfuelexpenditures:
2013...................................................................................
88 (b)2012...................................................................................88(b) 2011...................................................................................3636(b)(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.
(b)Notapplicable.NOTE4-SHORT-TERMDEBTANDLIQUIDITYTheliquidityneedsoftheAmerenCompaniesaretypicallysupportedthroughtheuseofavailablecash,short-termintercompanyborrowings,drawingsundercommittedbankcreditagreements,orcommercialpaperissuances.2012CreditAgreementsOnNovember14,2012,AmerenandAmerenMissourienteredintothe$1billion2012MissouriCreditAgreement.The2010MissouriCreditAgreementwasterminatedwhenthe2012MissouriCreditAgreementwhenintoeffect.AlsoonNovember14,2012,AmerenandAmerenIllinoisenteredintothe$1.1billion2012IllinoisCreditAgreement.The2010Illinois CreditAgreementwasterminatedwhenthe2012IllinoisCreditAgreementwentintoeffect.Thesefacilitiescumulativelyprovide$2.1billionofcreditthroughNovember14,2017,whichmaybeextendedwiththeagreementofthelenders,subject tothetermsofsuchagreements,fortwoadditionalone-yearperiods.Thefacilitiescurrentlyinclude24international,national, andregionallenders,withnolenderprovidingmorethan$125millionofcreditinaggregate.Theobligationsofeachborrowerundertherespective2012CreditAgreementstowhichitisapartyareseveralandnotjoint,and,exceptunderlimitedcircumstancesrelatingtoexpensesandindemnities,theobligationsofAmerenMissouriand AmerenIllinoisundertherespective2012CreditAgreementsarenotguaranteedbyAmerenoranyothersubsidiaryof Ameren.Themaximumaggregateamountavailabletoeachborrowerundereachfacilityisshowninthefollowingtable(such amountbeingsuchborrower's"BorrowingSublimit"):2012MissouriCreditAgreement2012IllinoisCreditAgreement Ameren..........................................................................$500$300AmerenMissouri...................................................................800(a)AmerenIllinois.....................................................................(a)800(a)Notapplicable.Amerenhastheoptiontoseekadditionalcommitmentsfromexistingornewlenderstoincreasethetotalfacility sizeofthe2012CreditAgreementsuptoamaximum amountof$1.2billionforthe2012MissouriCredit Agreementand$1.3billionforthe2012IllinoisCredit Agreement.The2012CreditAgreementsaswellasthe BorrowingSublimitsofAmerenandAmerenMissouri,will matureandexpireonNovember14,2017.TheBorrowing SublimitofAmerenIllinoiswillmatureandexpireon September30,2014,subjecttoextensionona364-day basisorforalongerperioduponnoticebytheborrowerof receiptofanyandallrequiredfederalorstateregulatory approvals,aspermittedunderthecreditagreement,butin noeventlaterthanNovember14,2017.InOctober2013, AmerenIllinoisfiledapetitionseekingstateregulatory approvalnecessarytoextendthematuritydateofitsBorrowingSublimitunderthe2012IllinoisCredit AgreementtoNovember14,2017.Ifandwhenregulatory approvalisreceived,nolenderapprovalwillberequiredto effecttheextension.Theprincipalamountofeachrevolving loanowedbyaborrowerunderanyofthe2012Credit Agreementstowhichitisapartywillbedueandpayableno laterthanthefinalmaturitydaterelatingtosuchborrower undersuch2012CreditAgreements.Theobligationsofallborrowersunderthe2012CreditAgreementsareunsecured.Loansareavailableona revolvingbasisundereachofthe2012CreditAgreements.
Fundsborrowedmayberepaidand,subjecttosatisfaction oftheconditionstoborrowing,reborrowedfromtimeto time.Attheelectionofeachborrower,theinterestrateson suchloanswillbethealternatebaserate("ABR")plusthe marginapplicabletotheparticularborrowerand/orthe 100 Eurodollarrateplusthemarginapplicabletotheparticularborrower.Theapplicablemarginswillbedeterminedbythe borrower'slong-termunsecuredcreditratingsor,ifnosuch ratingsarethenineffect,theborrower'scorporate/issuer ratingsthenineffect.Lettersofcreditinanaggregate undrawnfaceamountnottoexceed25%oftheapplicable aggregatecommitmentundertherespective2012Credit Agreementsarealsoavailableforissuancefortheaccount oftheborrowersthereunder(butwithinthe$2.1billion overallcombinedfacilityborrowinglimitationsofthe2012 CreditAgreements).Theborrowerswillusetheproceedsfromanyborrowingsunderthe2012CreditAgreementsforgeneral corporatepurposes,includingworkingcapital,commercial paperliquiditysupport,loanfundingundertheAmeren moneypoolarrangementsorothershort-term intercompanyloanarrangements,orpayingfeesand expensesincurredinconnectionwiththe2012Credit
Agreements.The2012CreditAgreementsareusedtoborrowcash,toissuelettersofcredit,andtosupportissuancesunder Ameren's$500millioncommercialpaperprogramand AmerenMissouri's$500millioncommercialpaper program.Eitherofthe2012CreditAgreementsareavailable toAmerentosupportissuancesunderAmeren's commercialpaperprogram,subjecttoborrowingsublimits.
The2012MissouriCreditAgreementisavailabletosupportissuancesunderAmerenMissouri'scommercialpaperprogram.AmerenIllinois'$500millioncommercialpaper program,underwhichnocommercialpaperwasever issued,wasterminatedin2013.AsofDecember31,2013, basedoncommercialpaperoutstandingandlettersof creditissuedunderthe2012CreditAgreements,the aggregateamountofcreditcapacityavailabletoAmeren (parent),AmerenMissouriandAmerenIllinois,collectively, atDecember31,2013,was$1.7billion.Ameren,AmerenMissouri,andAmerenIllinoisdidnotborrowunderthe2012CreditAgreementsfortheyears endedDecember31,2013,and2012.CommercialPaperThefollowingtablesummarizestheborrowingactivityandrelevantinterestratesunderAmeren'scommercialpaperprogram,fortheyearsendedDecember31,2013,and2012:20132012Averagedailyborrowingsoutstanding
...................................................................$54$49Outstandingborrowingsatperiod-end
...................................................................
368-Weighted-averageinterestrate
.........................................................................
0.56%0.92%Peakborrowingsduringperiod
........................................................................$368$229Peakinterestrate
...................................................................................
0.85%1.25%IndebtednessProvisionsandOtherCovenantsTheinformationbelowpresentsasummaryoftheAmerenCompanies'compliancewithindebtedness provisionsandothercovenants.The2012CreditAgreementscontainconditionstoborrowingsandissuancesoflettersofcredit,includingthe absenceofdefaultorunmatureddefault,materialaccuracy ofrepresentationsandwarranties(excludingany representationaftertheclosingdateastotheabsenceof materialadversechangeandmateriallitigation,andthe absenceofanynoticeofviolation,liabilityorrequirement underanyenvironmentallawsthatcouldhaveamaterial adverseeffect),andobtainingrequiredregulatory authorizations.Inaddition,asitrelatestoborrowingsunder the2012IllinoisCreditAgreement,itisaconditionforany suchborrowingthat,atthetimeofandaftergivingeffectto suchborrowing,theborrowernotbeinviolationofany limitationonitsabilitytoincurunsecuredindebtedness containedinitsarticlesofincorporation.The2012CreditAgreementsalsocontainnonfinancialcovenants,includingrestrictionsontheabilitytoincurliens, totransactwithaffiliates,todisposeofassets,tomake investmentsinortransferassetstoitsaffiliates,andto mergewithotherentities.The2012CreditAgreementsrequireeachofAmeren,AmerenMissouriandAmeren Illinoistomaintainconsolidatedindebtednessofnotmore than65%ofitsconsolidatedtotalcapitalizationpursuantto adefinedcalculationsetforthintheagreements.Asof December31,2013,theratiosofconsolidated indebtednesstototalconsolidatedcapitalization,calculated inaccordancewiththeprovisionsofthe2012Credit Agreements,were48%,47%and44%,forAmeren, AmerenMissouriandAmerenIllinois,respectively.In addition,underthe2012IllinoisCreditAgreementand,by virtueofthecross-defaultprovisionsofthe2012Missouri CreditAgreement,Amerenisrequiredtomaintainaratioof consolidatedfundsfromoperationsplusinterestexpenseto consolidatedinterestexpenseof2.0to1.0,tobecalculated quarterly,asoftheendofthemostrecentfourfiscal quartersthenending,inaccordancewiththe2012Illinois CreditAgreement.Ameren'sratioasofDecember31,2013, was5.3to1.0.Failureofaborrowertosatisfyafinancial covenantconstitutesanimmediatedefaultunderthe applicable2012CreditAgreement.The2012CreditAgreementscontaindefaultprovisionsthatapplyseparatelytoeachborrower,provided,however, thatadefaultofAmerenMissouriorAmerenIllinoisunder theapplicable2012CreditAgreementwillalsobedeemed toconstituteadefaultofAmerenundersuchagreement.
101 Defaultsincludeacross-defaulttoadefaultofsuchborrowerunderanyotheragreementcoveringoutstanding indebtednessofsuchborrowerandcertainsubsidiaries (otherthanprojectfinancesubsidiariesandnonmaterial subsidiaries)inexcessof$50millionintheaggregate (includingundertheother2012CreditAgreement).
However,underthedefaultprovisionsofthe2012Credit Agreements,anydefaultofAmerenunderanysuch2012 CreditAgreementsthatresultssolelyfromadefaultof AmerenMissouriorAmerenIllinoisthereunderdoesnot resultinacross-defaultofAmerenundertheother2012 CreditAgreement.Further,the2012CreditAgreement defaultprovisionsprovidethatanAmerendefaultunderany ofthe2012CreditAgreementsdoesnottriggeradefaultby AmerenMissouriorAmerenIllinois.NoneoftheAmerenCompanies'creditagreementsorfinancingarrangementscontaincreditratingtriggersthat wouldcauseadefaultoraccelerationofrepaymentof outstandingbalances.Managementbelievesthatthe AmerenCompanieswereincompliancewiththeprovisions andcovenantsoftheircreditagreementsatDecember31, 2013.MoneyPoolsAmerenhasmoneypoolagreementswithandamongitssubsidiariestocoordinateandprovideforcertainshort-termcashandworkingcapitalrequirements.Ameren Servicesisresponsiblefortheoperationandadministration ofthemoneypoolagreements.AmerenMissouri,AmerenIllinois,andAmerenServicesmayparticipateintheutilitymoneypoolasboth lendersandborrowers.Amerenmayparticipateinthe moneypoolonlyasalender.Internalfundsaresurplus fundscontributedtothemoneypoolfromparticipants.Theprimarysourcesofexternalfundsforthemoneypoolare the2012CreditAgreementsandthecommercialpaper programs.Thetotalamountavailabletothepool participantsfromthemoneypoolatanygiventimeis reducedbytheamountofborrowingsmadebyparticipants, butitisincreasedtotheextentthatthepoolparticipants advancesurplusfundstothemoneypoolorremitfunds fromotherexternalsources.Theavailabilityoffundsisalso determinedbyfundingrequirementlimitsestablishedby regulatoryauthorizations.Themoneypoolwasestablished tocoordinateandtoprovideshort-termcashandworking capitalfortheparticipants.Participantsreceivingaloan underthemoneypoolagreementmustrepaytheprincipal amountofsuchloan,togetherwithaccruedinterest.The rateofinterestdependsonthecompositionofinternaland externalfundsinthemoneypool.Theaverageinterestrate forborrowingunderthemoneypoolfortheyearended December31,2013,was0.14%(2012-0.13%).SeeNote14-RelatedPartyTransactionsfortheamountofinterestincomeandexpensefromthemoney poolarrangementsrecordedbytheAmerenCompaniesfor theyearsendedDecember31,2013,2012,and2011.UnilateralBorrowingAgreementInaddition,aunilateralborrowingagreementexistsamongAmeren,AmerenIllinois,andAmerenServices,whichenablesAmerenIllinoistomakeshort-term borrowingsdirectlyfromAmeren.Theaggregateamountof borrowingsoutstandingatanytimebyAmerenIllinois undertheunilateralborrowingagreementandtheutility moneypoolagreement,togetherwithanyoutstanding AmerenIllinoisexternalcreditfacilityborrowings,maynot exceed$500million,pursuanttoauthorizationfromthe ICC.AmerenIllinoisisnotcurrentlyborrowingunderthe unilateralborrowingagreement.
102 NOTE5-LONG-TERMDEBTANDEQUITYFINANCINGSThefollowingtablepresentslong-termdebtoutstanding,includingmaturitiesduewithinoneyear,fortheAmerenCompaniesasofDecember31,2013,and2012:20132012Ameren(Parent):8.875%Seniorunsecurednotesdue2014
........................................................$425$425Less:Unamortizeddiscountandpremium
......................................................
-(1)Less:Maturitiesduewithinoneyear
..........................................................
(425)-Long-termdebt,net
.....................................................................
$-$424AmerenMissouri:Seniorsecurednotes: (a)4.65%Seniorsecurednotesdue2013
...........................................................
-2005.50%Seniorsecurednotesdue2014
...........................................................
104 1044.75%Seniorsecurednotesdue2015
...........................................................
114 1145.40%Seniorsecurednotesdue2016
...........................................................
260 2606.40%Seniorsecurednotesdue2017
...........................................................
425 4256.00%Seniorsecurednotesdue2018 (b).........................................................
179 1795.10%Seniorsecurednotesdue2018
...........................................................
199 1996.70%Seniorsecurednotesdue2019 (b).........................................................
329 3295.10%Seniorsecurednotesdue2019
...........................................................
244 2445.00%Seniorsecurednotesdue2020
...........................................................
85 855.50%Seniorsecurednotesdue2034
...........................................................
184 1845.30%Seniorsecurednotesdue2037
...........................................................
300 3008.45%Seniorsecurednotesdue2039 (b).........................................................
350 3503.90%Seniorsecurednotesdue2042 (b).........................................................
485 485Environmentalimprovementandpollutioncontrolrevenuebonds:1992Seriesdue2022 (c)(d).....................................................................
47 4719935.45%Seriesdue2028 (e)................................................................(e)441998SeriesAdue2033 (c)(d)...................................................................
60 601998SeriesBdue2033 (c)(d)...................................................................
50 501998SeriesCdue2033 (c)(d)...................................................................
50 50Capitalleaseobligations:CityofBowlingGreencapitallease(PenoCreekCT)through2022
.....................................
59 64AudrainCountycapitallease(AudrainCountyCT)due2023
..........................................
240 240Totallong-termdebt,gross
.................................................................
3,764 4,013Less:Unamortizeddiscountandpremium
......................................................
(7)(7)Less:Maturitiesduewithinoneyear
..........................................................
(109)(205)Long-termdebt,net
.....................................................................
$3,648$3,801 103 20132012AmerenIllinois:Seniorsecurednotes:8.875%Seniorsecurednotesdue2013 (f).........................................................
$-$1506.20%Seniorsecurednotesdue2016 (f)..........................................................
54 546.25%Seniorsecurednotesdue2016 (g).........................................................
75 756.125%Seniorsecurednotesdue2017 (g)(h).......................................................
250 2506.25%Seniorsecurednotesdue2018 (g)(h)........................................................
144 1449.75%Seniorsecurednotesdue2018 (g)(h)........................................................
313 3132.70%Seniorsecurednotesdue2022 (g)(h)........................................................
400 4006.125%Seniorsecurednotesdue2028 (g)........................................................
60 606.70%Seniorsecurednotesdue2036 (g).........................................................
61 616.70%Seniorsecurednotesdue2036 (f)..........................................................
42 424.80%Seniorsecurednotesdue2043 (g).........................................................
280-Environmentalimprovementandpollutioncontrolrevenuebonds:5.90%Series1993due2023 (i).................................................................
32 325.70%1994ASeriesdue2024 (j)................................................................
36 361993SeriesC-15.95%due2026 (k).............................................................
35 351993SeriesC-25.70%due2026 (k).............................................................
8 81993SeriesB-1due2028 (d)(k).................................................................
17 175.40%1998ASeriesdue2028 (j)................................................................
19 195.40%1998BSeriesdue2028 (j)................................................................
33 33Fair-marketvalueadjustments
...................................................................
4 4Totallong-termdebt,gross
.................................................................
1,863 1,733Less:Unamortizeddiscountandpremium
......................................................
(7)(6)Less:Maturitiesduewithinoneyear
...........................................................
-(150)Long-termdebt,net
.....................................................................$1,856$1,577Amerenconsolidatedlong-termdebt,net
...........................................................$5,504$5,802(a)ThesenotesarecollaterallysecuredbyfirstmortgagebondsissuedbyAmerenMissouriundertheAmerenMissourimortgageindenture.Thenoteshaveafall-awaylienprovisionandwillremainsecuredonlyaslongasanyfirstmortgagebondsissuedundertheAmerenMissourimortgageindentureremainoutstanding.Redemption,purchase,ormaturityofallfirstmortgagebonds,includingfirstmortgagebonds currentlyoutstandingandanythatmaybeissuedinthefuture,wouldresultinareleaseofthefirstmortgagebondscurrentlysecuringthese notes,atwhichtimethesenoteswouldbecomeunsecuredobligations.ConsideringtheAmerenMissourifirstmortgagebondsandsenior securednotescurrentlyoutstanding,andassumingnoearlyretirementofanyseriesofsuchsecuritiesinfull,wedonotexpectthefirst mortgagebondlienprotectionassociatedwiththesenotestofallawayuntil2042.(b)AmerenMissourihasagreed,duringthelifeofthesenotes,nottooptionallyredeem,purchaseorotherwiseretireinfullitsfirstmortgagebonds.AmerenMissourihasalsoagreedtopreventafirstmortgagebondreleasedatefromoccurringaslongasanyofthe8.45%senior securednotesdue2039andanyofthe3.90%seniorsecurednotesdue2042remainoutstanding.(c)ThesebondsarecollaterallysecuredbyfirstmortgagebondsissuedbyAmerenMissouriundertheAmerenMissourimortgageindentureandhaveafall-awaylienprovisionsimilartothatofAmerenMissouri'sseniorsecurednotes.Thebondsarealsobackedbyaninsuranceguarantee
policy.(d)Interestrates,andperiodsduringwhichsuchratesapply,varydependingonourselectionofdefinedratemodes.Maximuminterestratescouldrangeupto18%dependingontheseriesofbonds.Theaverageinterestratesfor2013and2012wereasfollows:
2013 2012AmerenMissouri1992Series
..........0.17%0.30%AmerenMissouri1998SeriesA
........0.34%0.65%AmerenMissouri1998SeriesB
........0.33%0.64%AmerenMissouri1998SeriesC
........0.34%0.64%AmerenIllinois1993SeriesB-1
........0.14%0.22%(e)ThesebondsarefirstmortgagebondsissuedbyAmerenMissouriundertheAmerenMissourimortgagebondindentureandaresecuredbysubstantiallyallAmerenMissouripropertyandfranchises.Thebondsarecallableat100%ofparvalue.Lessthan$1millionprincipalamount ofthebondsremainoutstanding.(f)ThesenotesarecollaterallysecuredbyfirstmortgagebondsissuedbyAmerenIllinoisundertheCILCOmortgageindenture.Thenoteshaveafall-awaylienprovisionandwillremainsecuredonlyaslongasanyseriesoffirstmortgagebondsissuedundertheCILCOmortgageindenture remainoutstanding.Redemption,purchase,ormaturityofallfirstmortgagebonds,includingfirstmortgagebondscurrentlyoutstandingand anythatmaybeissuedinthefuture,wouldresultinareleaseofthefirstmortgagebondscurrentlysecuringthesenotes,atwhichtimethese noteswouldbecomeunsecuredobligations.ConsideringtheCILCOfirstmortgagebondsandseniorsecurednotescurrentlyoutstanding,and assumingnoearlyretirementofanyseriesofsuchsecuritiesinfull,wedonotexpectthefirstmortgagebondlienprotectionassociatedwith thesenotestofallawayuntil2023.(g)ThesenotesarecollaterallysecuredbymortgagebondsissuedbyAmerenIllinoisundertheAmerenIllinoismortgageindenture.Thenoteshaveafall-awaylienprovisionandwillremainsecuredonlyaslongasanyseriesoffirstmortgagebondsissuedundertheAmerenIllinois mortgageindentureremainoutstanding.Redemption,purchase,ormaturityofallmortgagebonds,includingfirstmortgagebondscurrently 104 outstandingandanythatmaybeissuedinthefuture,wouldresultinareleaseofthemortgagebondscurrentlysecuringthesenotes,atwhichtimethesenoteswouldbecomeunsecuredobligations.ConsideringtheAmerenIllinoismortgagebondsandseniorsecurednotescurrently outstanding,andassumingnoearlyretirementofanyseriesofsuchsecuritiesinfull,wedonotexpectthemortgagebondlienprotection associatedwiththesenotestofallawayuntil2028.(h)AmerenIllinoishasagreed,duringthelifeofthesenotes,nottooptionallyredeem,purchase,orotherwiseretireinfullitsAmerenIllinoismortgagebonds;therefore,anAmerenIllinoisfirstmortgagebondreleasedatewillnotoccuraslongasanyofthesenotesareoutstanding.(i)ThesebondsarefirstmortgagebondsissuedbyAmerenIllinoisundertheCILCOmortgageindentureandaresecuredbysubstantiallyallpropertyoftheformerCILCO.Thebondsarecallableat100%ofparvalue.(j)ThesebondsaremortgagebondsissuedbyAmerenIllinoisundertheAmerenIllinoismortgageindentureandaresecuredbysubstantiallyallpropertyoftheformerIPandCIPS.Thebondsarecallableat100%ofparvalue.Thebondsarealsobackedbyaninsuranceguaranteepolicy.(k)Thebondsarecallableat100%ofparvalue.Thefollowingtablepresentstheaggregatematuritiesoflong-termdebt,includingcurrentmaturities,fortheAmerenCompaniesatDecember31,2013:
Ameren (Parent)(a)Ameren Missouri (a)Ameren Illinois (a)(b)Ameren Consolidated 2014...................................................$425$109$-$534 2015...................................................-120-120 2016...................................................-266129395 2017...................................................-431250681 2018...................................................-383457840 Thereafter...............................................-2,4551,0233,478 Total...................................................$425$3,764$1,859$6,048(a)Excludesunamortizeddiscountandpremiumof$7millionand$7millionatAmerenMissouriandAmerenIllinois,respectively.
(b)Excludes$4millionrelatedtoAmerenIllinois'long-termdebtfair-marketvalueadjustments,whicharebeingamortizedtointerestexpenseovertheremaininglifeofthedebt.AllclassesofAmerenMissouri'sandAmerenIllinois'preferredstockareentitledtocumulativedividendsandhavevotingrights.PreferredstocknotsubjecttomandatoryredemptionofAmeren'ssubsidiarieswasincludedin"NoncontrollingInterests"onAmeren'sconsolidatedbalancesheet.ThefollowingtablepresentstheoutstandingpreferredstockofAmeren MissouriandAmerenIllinoisthatisnotsubjecttomandatoryredemption.Thepreferredstockisredeemable,attheoptionof theissuer,atthepricesshownbelowasofDecember31,2013,and2012:RedemptionPrice(pershare)20132012AmerenMissouri:Withoutparvalueandstatedvalueof$100pershare,25millionsharesauthorized$3.50Series130,000shares....................$
110.00$13$13$3.70Series40,000shares
....................
104.75 4 4$4.00Series150,000shares
....................
105.625 15 15$4.30Series40,000shares
....................
105.00 4 4$4.50Series213,595shares
....................
110.00 (a)21 21$4.56Series200,000shares
....................
102.47 20 20$4.75Series20,000shares
....................
102.176 2 2$5.50SeriesA14,000shares
....................
110.00 1 1 Total..........................................................$80$80AmerenIllinois:
Withparvalueof$100pershare,2millionsharesauthorized4.00%Series144,275shares....................$
101.00$14$144.08%Series45,224shares
....................
103.00 5 54.20%Series23,655shares
....................
104.00 2 24.25%Series50,000shares
....................
102.00 5 54.26%Series16,621shares
....................
103.00 2 24.42%Series16,190shares
....................
103.00 2 24.70%Series18,429shares
....................
103.00 2 24.90%Series73,825shares
....................
102.00 7 74.92%Series49,289shares
....................
103.50 5 55.16%Series50,000shares
....................
102.00 5 56.625%Series124,274shares
....................
100.00 12 127.75%Series4,542shares
....................
100.00 1 1 Total..........................................................$62$62TotalAmeren
......................................................$142$142(a)Intheeventofvoluntaryliquidation,$105.50.
105 Amerenhas100millionsharesof$0.01parvaluepreferredstockauthorized,withnosharesoutstanding.AmerenMissourihas7.5millionsharesof$1parvalue preferencestockauthorized,withnosuchpreferencestock outstanding.AmerenIllinoishas2.6millionsharesofno parvaluepreferredstockauthorized,withnoshares
outstanding.
AmerenAmerenfiledaFormS-8registrationstatementwiththeSECinOctober2013,authorizingtheofferingof4millionadditionalsharesofitscommonstockunderits 401(k)plan.Sharesofcommonstocksoldunderthe401(k) planare,atAmeren'soption,newlyissuedshares,treasuryshares,orsharespurchasedintheopenmarketorin privatelynegotiatedtransactions.AmerenfiledaFormS-3registrationstatementwiththeSECinJune2011,authorizingtheofferingof6million additionalsharesofitscommonstockunderDRPlus.
SharesofcommonstocksoldunderDRPlusare,at Ameren'soption,newlyissuedshares,treasuryshares,or sharespurchasedintheopenmarketorinprivately negotiatedtransactions.In2013and2012,Amerenshares werepurchasedintheopenmarketforDRPlusandits 401(k)plan.UnderDRPlusandits401(k)plan,Ameren issued2.2millionsharesofcommonstockin2011,which werevaluedat$65million.AmerenMissouriInOctober2013,$44millionofAmerenMissouri's19935.45%Seriestax-exemptfirstmortgagebondswereredeemedatparvalueplusaccruedinterest,and$200millionofAmerenMissouri's4.65%seniorsecurednotesmaturedandwere
retired.OnSeptember11,2012,AmerenMissouriissued$485millionprincipalamountof3.90%seniorsecurednotesdueSeptember15,2042,withinterestpayablesemiannuallyonMarch15andSeptember15ofeachyear,beginningMarch15, 2013.Thesenotesaresecuredbyfirstmortgagebonds.AmerenMissourireceivednetproceedsof$478million.Theproceeds wereused,togetherwithotheravailablecash,toprovidethefundsnecessarytocompleteAmerenMissouri'stenderofferon September20,2012,includingthepaymentofinterestandallrelatedfeesandexpenses,andtoretirethe$173million principalamount5.25%seniorsecurednotesthatmaturedinSeptember2012.OnSeptember20,2012,AmerenMissouricompleteditstenderoffertopurchaseforcashitsoutstanding6.00%seniorsecurednotesdue2018,6.70%seniorsecurednotesdue2019,5.10%seniorsecurednotesdue2018,and5.10%senior securednotesdue2019.Anynotesthatwerenottenderedandpurchasedinthetenderofferremainoutstandingandcontinue tobeobligationsofAmerenMissouri.Thefollowingtablesetsforththeaggregateprincipalamountofeachseriesofnotes repurchased,alongwithcertainotheritemsrelatedtothetenderoffer:SeniorSecuredNotesPrincipalAmount RepurchasedPremiumPlusAccruedandUnpaidInterest (a)PrincipalAmountOutstandingAfterTenderOffer6.00%seniorsecurednotesdue2018.....................$71$19$1796.70%seniorsecurednotesdue2019.....................121353295.10%seniorsecurednotesdue2018.....................1(b)1995.10%seniorsecurednotesdue2019.....................5612244(a)Thepremiumspaidinassociationwiththetenderofferwererecordedasaregulatoryassetandarebeingamortizedoverthelifeofthe$485million3.90%seniorsecurednotesdue2042.(b)Amountislessthan$1million.AmerenIllinoisInJanuary2014,AmerenIllinoisredeemedthefollowingenvironmentalimprovementandpollutioncontrolrevenuebondsatparvalueplusaccruedinterest:SeniorSecuredNotesPrincipalAmount5.90%Series1993due2023 (a)...........................................................................$325.70%1994ASeriesdue2024 (a)..........................................................................361993SeriesC-15.95%due2026
.........................................................................351993SeriesC-25.70%due2026
.........................................................................
85.40%1998ASeriesdue2028
...........................................................................195.40%1998BSeriesdue2028
...........................................................................33Totalamountredeemed.................................................................................$163(a)Lessthan$1millionprincipalamountofthebondsremainoutstandingasofJanuary31,2014.
106 InDecember2013,AmerenIllinoisissued$280millionprincipalamountof4.80%seniorsecurednotesdueDecember15,2043,withinterestpayablesemiannuallyonJune15andDecember15ofeachyear,beginningJune15,2014.Thesenotesaresecuredbyfirstmortgagebonds.AmerenIllinoisreceivednetproceedsof$276million.Theproceedswere used,togetherwithotheravailablecash,torepayatmaturity$150millionaggregateprincipalamountofits8.875%senior securednotesdueDecember15,2013,andtorepayitsshort-termdebt.OnAugust20,2012,AmerenIllinoisissued$400millionprincipalamountof2.70%seniorsecurednotesdueSeptember1,2022,withinterestpayablesemiannuallyonMarch1andSeptember1ofeachyear,beginningMarch1,2013.
Thesenotesaresecuredbyfirstmortgagebonds.AmerenIllinoisreceivednetproceedsof$397million.Theproceedswere used,togetherwithotheravailablecash,toprovidethefundsnecessarytocompleteAmerenIllinois'tenderofferon August27,2012,includingthepaymentofinterestandallrelatedfeesandexpenses,andtoredeem$51millionprincipal amountof5.50%pollutioncontrolrevenuebondsatparvalueplusaccruedinterest.OnAugust27,2012,AmerenIllinoiscompleteditstenderoffertopurchaseforcashitsoutstanding9.75%seniorsecurednotesdue2018and6.25%seniorsecurednotesdue2018.Anynotesthatwerenottenderedandpurchasedinthe tenderofferremainoutstandingandcontinuetobeobligationsofAmerenIllinois.Thefollowingtablesetsforththeaggregate principalamountofeachseriesofnotesrepurchased,alongwithcertainotheritemsrelatedtothetenderoffer:SeniorSecuredNotesPrincipalAmount RepurchasedPremiumPlusAccruedandUnpaidInterest (a)PrincipalAmountOutstandingAfterTenderOffer9.75%seniorsecurednotesdue2018.....................$87$36$3136.25%seniorsecurednotesdue2018.....................19447144(a)Premiumspaidintheamountof$21millioninassociationwiththetenderofferwererecordedasaregulatoryassetandarebeingamortizedoverthelifeofthe$400million2.70%seniorsecurednotesdue2022.Premiumsof$15millionwereexpensedin2013asaresultofdisallowancesintheICC'sDecember2013electricandnaturalgasrateorders.SeeNote2-RateandRegulatoryMattersforfurther informationregardingthedisallowances.InNovember2012,$1millionprincipalamountofAmerenIllinois'6.20%Series1992BPollutionControlrevenuebondsmaturedandwereretired.IndentureProvisionsandOtherCovenantsAmerenMissouri'sandAmerenIllinois'indenturesandarticlesofincorporationincludecovenantsandprovisionsrelatedtoissuancesoffirstmortgagebondsandpreferredstock.AmerenMissouriandAmerenIllinoisarerequiredtomeetcertainratiostoissueadditionalfirstmortgagebondsandpreferredstock.Afailuretoachievetheseratioswouldnotresultina defaultunderthesecovenantsandprovisionsbutwouldrestrictthecompanies'abilitytoissuebondsorpreferredstock.The followingtablesummarizestherequiredandactualinterestcoverageratiosforinterestchargesanddividendcoverageratios andbondsandpreferredstockissuableasofDecember31,2013,atanassumedinterestrateof6%anddividendrateof7%.RequiredInterestCoverageRatio (a)ActualInterestCoverageRatioBondsIssuable (b)RequiredDividendCoverageRatio (c)ActualDividendCoverageRatioPreferredStock IssuableAmerenMissouri
....>2.04.5$3,831>2.5116.5$2,228AmerenIllinois
......>2.06.83,565 (d)>1.5 2.4 203(a)Coveragerequiredontheannualinterestchargesonfirstmortgagebondsoutstandingandtobeissued.Coverageisnotrequiredincertaincaseswhenadditionalfirstmortgagebondsareissuedonthebasisofretiredbonds.(b)Amountofbondsissuablebasedeitheronrequiredcoverageratiosorunfundedpropertyadditions,whicheverismorerestrictive.Theamountsshownalsoincludebondsissuablebasedonretiredbondcapacityof$729millionand$365millionatAmerenMissouriandAmerenIllinois, respectively.(c)Coveragerequiredontheannualdividendonpreferredstockoutstandingandtobeissued,asrequiredintherespectivecompany'sarticlesof incorporation.(d)AmountofbondsissuablebyAmerenIllinoisbasedonunfundedpropertyadditionsandretiredbondssolelyundertheformerIPmortgage indenture.Ameren'sindenturedoesnotrequireAmerentocomplywithanyquantitativefinancialcovenants.Theindenturedoes,however,includecertaincross-default provisions.Specifically,either(1)thefailurebyAmerento paywhendueanduponexpirationofanyapplicablegrace periodanyportionofanyAmerenindebtednessinexcessof
$25millionor(2)theaccelerationupondefaultofthe maturityofanyAmerenindebtednessinexcessof$25millionunderanyindebtednessagreement,including the2012CreditAgreements,constitutesadefaultunderthe indenture,unlesssuchpastdueoraccelerateddebtis dischargedortheaccelerationisrescindedorannulled withinaspecifiedperiod.AmerenMissouriandAmerenIllinoisandcertainothernonregistrantAmerensubsidiariesaresubjectto Section305(a)oftheFederalPowerAct,whichmakesit 107 unlawfulforanyofficerordirectorofapublicutility,asdefinedintheFederalPowerAct,toparticipateinthe makingorpayingofanydividendfromanyfunds"properly includedincapitalaccount."FERChasconsistently interpretedtheprovisiontoallowdividendstobepaidas longas(1)thesourceofthedividendsisclearlydisclosed, (2)thedividendsarenotexcessive,and(3)thereisnoself-dealingonthepartofcorporateofficials.Ataminimum, Amerenbelievesthatdividendscanbepaidbyits subsidiariesthatarepublicutilitiesfromnetincomeand retainedearnings.Inaddition,underIllinoislaw,Ameren Illinoismaynotpayanydividendonitsstock,unless, amongotherthings,itsearningsandearnedsurplusare sufficienttodeclareandpayadividendafterprovisionis madeforreasonableandproperreserves,orunlessAmeren IllinoishasspecificauthorizationfromtheICC.AmerenIllinois'articlesofincorporationrequiredividendpaymentsonitscommonstocktobebasedon ratiosofcommonstocktototalcapitalizationandother provisionsrelatedtocertainoperatingexpensesandaccumulationsofearnedsurplus.AmerenIllinois committedtoFERCtomaintainaminimum30%ratioof commonstockequitytototalcapitalization.Asof December31,2013,AmerenIllinois'ratioofcommonstock equitytototalcapitalizationwas55%.InorderfortheAmerenCompaniestoissuesecuritiesinthefuture,theywillhavetocomplywithallapplicable requirementsineffectatthetimeofanysuchissuances.Off-Balance-SheetArrangementsAtDecember31,2013,noneoftheAmerenCompanieshadanyoff-balance-sheetfinancingarrangements,otherthanoperatingleasesenteredintointheordinarycourseof business.NoneoftheAmerenCompaniesexpecttoengage inanysignificantoff-balance-sheetfinancingarrangements inthenearfuture.SeeNote16-DivestitureTransactions andDiscontinuedOperationsforAmeren(parent) guaranteesandlettersofcreditissuedtosupportNewAER basedonthetransactionagreementwithIPH.
108 NOTE6-OTHERINCOMEANDEXPENSESThefollowingtablepresentsthecomponentsof"OtherIncomeandExpenses"intheAmerenCompanies'statementsofincome(loss)fortheyearsendedDecember31,2013,2012,and2011:201320122011 Ameren: (a)Miscellaneousincome:Allowanceforequityfundsusedduringconstruction
.........................................$37$36$34Interestincomeonindustrialdevelopmentrevenuebonds
.....................................
272828Interestanddividendincome
...........................................................
3 4 (b)3 Other..............................................................................
2 23Totalmiscellaneousincome
..............................................................$69$70$68Miscellaneousexpense:
Donations..........................................................................$12$24 (c)$8 Other..............................................................................
141315Totalmiscellaneousexpense
.............................................................$26$37$23AmerenMissouri:Miscellaneousincome:Allowanceforequityfundsusedduringconstruction
.........................................$31$31$30Interestincomeonindustrialdevelopmentrevenuebonds
.....................................
272828Interestanddividendincome
...........................................................
-4 (b)2 Other..............................................................................
--1Totalmiscellaneousincome
..............................................................$58$63$61Miscellaneousexpense:
Donations..........................................................................
$4$9$3 Other..............................................................................
7 57Totalmiscellaneousexpense
.............................................................$11$14$10AmerenIllinois:
Miscellaneousincome:Allowanceforequityfundsusedduringconstruction
.........................................
$6$5$4Interestanddividendincome
...........................................................
2-1 Other..............................................................................
2 22Totalmiscellaneousincome
..............................................................$10$7$7Miscellaneousexpense:
Donations..........................................................................
$4$11 (c)$1 Other..............................................................................
5 65Totalmiscellaneousexpense
.............................................................
$9$17$6(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.
(b)Includesinterestincomereceivedin2012relatingtoarefundofchargesincludedinanexpiredpowerpurchaseagreementwithEntergy.SeeNote2-RateandRegulatoryMattersforadditionalinformation.(c)IncludesAmerenIllinois'one-time$7.5milliondonationtotheIllinoisScienceandEnergyInnovationTrustpursuanttotheIEIMAasaresultofAmerenIllinois'2012participationintheelectricdeliveryformularatemakingprocess.NOTE7-DERIVATIVEFINANCIALINSTRUMENTSWeusederivativesprincipallytomanagetheriskofchangesinmarketpricesfornaturalgas,diesel,power,anduranium.Suchpricefluctuationsmaycausethefollowing:
anunrealizedappreciationordepreciationofourcontractedcommitmentstopurchaseorsellwhen purchaseorsalepricesunderthecommitmentsare comparedwithcurrentcommodityprices; marketvaluesofnaturalgasanduraniuminventories thatdifferfromthecostofthosecommoditiesin inventory;and actualcashoutlaysforthepurchaseofthese commoditiesthatdifferfromanticipatedcashoutlays.Thederivativesthatweusetohedgetheserisksaregovernedbyourriskmanagementpoliciesforforward contracts,futures,options,andswaps.Ournetpositions arecontinuallyassessedwithinourstructuredhedging programstodeterminewhetherneworoffsetting transactionsarerequired.Thegoalofthehedgingprogram isgenerallytomitigatefinancialriskswhileensuringthat sufficientvolumesareavailabletomeetourrequirements.
Contractsweenterintoaspartofourriskmanagement programmaybesettledfinancially,settledbyphysical delivery,ornetsettledwiththecounterparty.
109 ThefollowingtablepresentsopengrosscommoditycontractvolumesbycommoditytypeforderivativeassetsandliabilitiesasofDecember31,2013,and2012.AsofDecember31,2013,thesecontractsranthroughOctober2016,October2019,May2032,andOctober2016forfueloils,naturalgas,power,anduranium,respectively.Quantity(inmillions,exceptasindicated)20132012 Commodity Ameren Missouri AmerenIllinoisAmeren Ameren Missouri AmerenIllinoisAmerenFueloils(ingallons)(a).........................................66(b)6670(b)70Naturalgas(inmmbtu)........................................2810813619128147Power(inmegawatthours)......................................31114111425Uranium(poundsinthousands).................................796(b)796446(b)446(a)Fueloilsconsistofheatingoil,ultra-low-sulfurdiesel,andcrudeoil.(b)Notapplicable.Authoritativeaccountingguidanceregardingderivativeinstrumentsrequiresthatallcontractsconsideredtobederivativeinstrumentsberecordedonthebalancesheetat theirfairvalues,unlesstheNPNSexceptionapplies.See Note8-FairValueMeasurementsfordiscussionofour methodsofassessingthefairvalueofderivative instruments.Manyofourphysicalcontracts,suchasour purchasedpowercontracts,qualifyfortheNPNSexception toderivativeaccountingrules.Therevenueorexpenseon NPNScontractsisrecognizedatthecontractpriceupon physicaldelivery.IfwedeterminethatacontractmeetsthedefinitionofaderivativeandisnoteligiblefortheNPNSexception,we reviewthecontracttodetermineifitqualifiesforhedge accounting.Wealsoconsiderwhethergainsorlosses resultingfromsuchderivativesqualifyforregulatory deferral.Derivativecontractsthatqualifyforregulatory deferralarerecordedatfairvalue,withchangesinfairvalue recordedasregulatoryassetsorregulatoryliabilitiesintheperiodinwhichthechangeoccurs.AmerenMissouriand AmerenIllinoisbelievederivativegainsandlossesdeferred asregulatoryassetsandregulatoryliabilitiesareprobableof recoveryorrefundthroughfuturerateschargedto customers.Regulatoryassetsandregulatoryliabilitiesare amortizedtooperatingincomeasrelatedlossesandgains arereflectedinrateschargedtocustomers.Therefore, gainsandlossesonthesederivativeshavenoeffecton operatingincome.AsofDecember31,2013,and2012,all contractsthatqualifyforhedgeaccountingreceive regulatorydeferral.Authoritativeaccountingguidancepermitscompaniestooffsetfairvalueamountsrecognizedfortherightto reclaimcashcollateral(areceivable)ortheobligationto returncashcollateral(aliability)againstfairvalueamounts recognizedforderivativeinstrumentsthatareexecutedwith thesamecounterpartyunderthesamemasternetting arrangement.TheAmerenCompaniesdidnotelecttoadopt thisguidanceforanyeligiblecommoditycontracts.
110 ThefollowingtablepresentsthecarryingvalueandbalancesheetlocationofallderivativeinstrumentsasofDecember31,2013,and2012:BalanceSheetLocation Ameren Missouri AmerenIllinoisAmeren 2013Derivativeassetsnotdesignatedashedginginstruments (a)Commoditycontracts:Fueloils..............Othercurrentassets
.................................$6$-$6Otherassets
.......................................3-3Naturalgas
............Othercurrentassets
.................................112 Power................Othercurrentassets
.................................23-23Totalassets
.......................................$33$1$34Derivativeliabilitiesnotdesignatedashedginginstruments (a)Commoditycontracts:Fueloils..............MTMderivativeliabilities
.............................$(b)$-$2Othercurrentliabilities
...............................2--Otherdeferredcreditsandliabilities
.....................1-1Naturalgas............MTMderivativeliabilities
.............................(b)2732Othercurrentliabilities
...............................5--Otherdeferredcreditsandliabilities
.....................61925 Power................MTMderivativeliabilities
.............................(b)9 13Othercurrentliabilities
...............................4--Otherdeferredcreditsandliabilities
.....................
-999 9 Uranium..............MTMderivativeliabilities
.............................(b)-5Othercurrentliabilities
...............................5--Otherdeferredcreditsandliabilities
.....................1-1Totalliabilities
....................................$24$154$178 2012 Derivativeassetsnotdesignatedashedginginstruments (a)Commoditycontracts:Fueloils..............Othercurrentassets.................................$8$-$8Otherassets.......................................4-4Naturalgas
............Othercurrentassets.................................-11Otherassets.......................................1-1 Power................Othercurrentassets.................................14-14Otherassets.......................................1-1Totalassets.......................................$28$1$29Derivativeliabilitiesnotdesignatedashedginginstruments (a)Commoditycontracts:Fueloils..............MTMderivativeliabilities.............................$(b)$-$2Othercurrentliabilities
...............................
2--Otherdeferredcreditsandliabilities
.....................
2-2Naturalgas............MTMderivativeliabilities
.............................(b)5664Othercurrentliabilities
...............................
8--Otherdeferredcreditsandliabilities
.....................
73845 Power................MTMderivativeliabilities
.............................(b)2125Othercurrentliabilities
...............................
4--Otherdeferredcreditsandliabilities
-90 90 Uranium..............MTMderivativeliabilities
.............................(b)-1Othercurrentliabilities
...............................
1--Otherdeferredcreditsandliabilities
.....................
1-1Totalliabilities....................................$25$205$230(a)Includesderivativessubjecttoregulatorydeferral.
(b)Balancesheetlineitemnotapplicabletoregistrant.
111 Thefollowingtablepresentsthecumulativeamountofpretaxnetgains(losses)onallderivativeinstrumentsdeferredinregulatoryassetsorregulatoryliabilitiesasofDecember31,2013,and2012:
Ameren Missouri AmerenIllinoisAmeren 2013Cumulativegains(losses)deferredinregulatoryliabilitiesorassets:Fueloilsderivativecontracts (a)..............................................................$2$-$2Naturalgasderivativecontracts (b)............................................................(10)(45)(55)Powerderivativecontracts (c)................................................................19(108)(89)Uraniumderivativecontracts (d)..............................................................(6)-(6)2012 Cumulativegains(losses)deferredinregulatoryliabilitiesorassets:Fueloilsderivativecontracts (a)..............................................................$4$-$4Naturalgasderivativecontracts (b)............................................................(14)(93)(107)Powerderivativecontracts (c)................................................................12(111)(99)Uraniumderivativecontracts (d)..............................................................(2)-(2)(a)RepresentsnetgainsonfueloilsderivativecontractsatAmerenMissouri.ThesecontractsareapartialhedgeofAmerenMissouri'stransportationcostsforcoalthroughOctober2016,asofDecember31,2013.Currentgainsdeferredasregulatoryliabilitiesinclude$3million and$3millionatAmerenandAmerenMissouriasofDecember31,2013,respectively.Currentlossesdeferredasregulatoryassetsinclude
$1millionand$1millionatAmerenandAmerenMissouriasofDecember31,2013,respectively.(b)Representsnetlossesassociatedwithnaturalgasderivativecontracts.ThesecontractsareapartialhedgeofnaturalgasrequirementsthroughOctober2019atAmerenandAmerenMissouriandthroughMarch2017atAmerenIllinois,ineachcaseasofDecember31,2013.Current gainsdeferredasregulatoryliabilitiesinclude$2million,$1million,and$1millionatAmeren,AmerenMissouri,andAmerenIllinois, respectively,asofDecember31,2013.Currentlossesdeferredasregulatoryassetsinclude$32million,$5million,and$27millionatAmeren, AmerenMissouriandAmerenIllinois,respectively,asofDecember31,2013.(c)Representsnetgains(losses)associatedwithpowerderivativecontracts.ThesecontractsareapartialhedgeofpowerpricerequirementsthroughMay2032atAmerenandAmerenIllinoisandthroughDecember2015atAmerenMissouri,ineachcaseasofDecember31,2013.
Currentgainsdeferredasregulatoryliabilitiesinclude$23millionand$23millionatAmerenandAmerenMissouri,respectively,asof December31,2013.Currentlossesdeferredasregulatoryassetsinclude$13million,$4million,and$9millionatAmeren,AmerenMissouri andAmerenIllinois,respectively,asofDecember31,2013.(d)RepresentsnetlossesonuraniumderivativecontractsatAmerenMissouri.ThesecontractsareapartialhedgeofAmerenMissouri'suraniumrequirementsthroughOctober2016,asofDecember31,2013.Currentlossesdeferredasregulatoryassetsinclude$5millionand$5million atAmerenandAmerenMissouriasofDecember31,2013,respectively.Derivativeinstrumentsaresubjecttovariouscredit-relatedlossesintheeventofnonperformancebycounterpartiestothetransaction.Exchange-tradedcontractsaresupportedbythefinancialandcreditqualityoftheclearingmembersoftherespectiveexchangesandhavenominalcreditrisk.Inallothertransactions,weareexposedtocreditrisk.Ourcreditrisk managementprograminvolvesestablishingcreditlimitsandcollateralrequirementsforcounterparties,usingmastertrading andnettingagreements,andreportingdailyexposuretoseniormanagement.Webelievethatenteringintomastertradingandnettingagreementsmitigatestheleveloffinanciallossthatcouldresultfromdefaultbyallowingnetsettlementofderivativeassetsandliabilities.Wegenerallyenterintothefollowingmastertrading andnettingagreements:(1)theInternationalSwapsandDerivativesAssociationAgreement,astandardizedfinancialnatural gasandelectriccontract;(2)theMasterPowerPurchaseandSaleAgreement,createdbytheEdisonElectricInstituteandthe NationalEnergyMarketersAssociation,astandardizedcontractforthepurchaseandsaleofwholesalepower;and(3)the NorthAmericanEnergyStandardsBoardInc.agreement,astandardizedcontractforthepurchaseandsaleofnaturalgas.
Thesemastertradingandnettingagreementsallowthecounterpartiestonetsettlesaleandpurchasetransactions.Further, collateralrequirementsarecalculatedatthemastertradingandnettingagreementlevelbycounterparty.
112 AlthoughAmerenhadnotpreviouslyelectedtooffsetfairvalueamountsandcollateralforderivativeinstrumentsexecutedwiththesamecounterpartyunderthesamemasternettingarrangement,authoritativeaccountingguidance,effectiveinthefirstquarter2013,requiresthoseamountseligibletobeoffsettobepresentedbothatthegrossandnetamounts.The followingtableprovidestherecognizedgrossderivativebalancesandthenetamountsofthosederivativessubjecttoan enforceablemasternettingarrangementorsimilaragreementasofDecember31,2013,and2012:GrossAmountsNotOffsetintheBalanceSheetGrossAmountsRecognizedintheBalanceSheet Derivative InstrumentsCashCollateralReceived/Posted(a)
Net Amount 2013Commoditycontractseligibletobeoffset:
Assets:
AmerenMissouri
..............................................$33$9$-$24AmerenIllinois
...............................................
11--Ameren.....................................................$34$10$-$24 Liabilities:
AmerenMissouri
..............................................$24$9$9$6AmerenIllinois
...............................................
154 1 15 138 Ameren.....................................................$178$10$24$144 2012 Commoditycontractseligibletobeoffset:
Assets:
AmerenMissouri..............................................$28$9$-$19AmerenIllinois
...............................................
1 1--Ameren.....................................................$29$10$-$19 Liabilities:
AmerenMissouri..............................................$25$9$7$9AmerenIllinois...............................................205 158146 Ameren.....................................................$230$10$65$155(a)Cashcollateralreceivedreducesgrossassetbalancesandisincludedin"Othercurrentliabilities"and"Otherdeferredcreditsandliabilities"onthebalancesheet.Cashcollateralpostedreducesgrossliabilitybalancesandisincludedin"Othercurrentassets"and"Otherassets"onthe balancesheet.ConcentrationsofCreditRiskIndeterminingourconcentrationsofcreditriskrelatedtoderivativeinstruments,wereviewourindividualcounterpartiesandcategorizeeachcounterpartyintogroupingsaccordingtotheprimarybusinessinwhicheachengages.Wecalculatemaximumexposuresbasedonthegrossfairvalueoffinancialinstruments,includingaccrualandNPNScontracts.Asof December31,2013,ifcounterpartygroupsweretofailcompletelytoperformoncontracts,Ameren,AmerenMissouri,and AmerenIllinois'maximumexposurewas$13million,$12million,and$1million,respectively.AsofDecember31,2012,if counterpartygroupsweretofailcompletelytoperformoncontracts,Ameren,AmerenMissouri,andAmerenIllinois' maximumexposurewas$23million,$22million,and$1million,respectively.Thepotentiallossoncounterpartyexposuresis reducedbytheapplicationofmastertradingandnettingagreementsandcollateralheldtotheextentofreducingtheexposure tozero.AsofDecember31,2013,thepotentiallossafterconsiderationoftheapplicationofmastertradingandnetting agreementsandcollateralheldforAmerenandAmerenMissouriwas$6millionand$6million,respectively.Asof December31,2012,thepotentiallossafterconsiderationoftheapplicationofmastertradingandnettingagreementsand collateralheldforAmerenandAmerenMissouriwas$15millionand$15million,respectively.
113 DerivativeInstrumentswithCreditRisk-RelatedContingentFeaturesOurcommoditycontractscontaincollateralprovisionstiedtotheAmerenCompanies'creditratings.Ifweweretoexperienceanadversechangeinourcreditratings,orifacounterpartywithreasonablegroundsforuncertaintyregardingperformanceofanobligationrequestedadequateassuranceofperformance,additionalcollateralpostingsmightberequired.Thefollowingtablepresents,asofDecember31,2013,and2012,theaggregatefairvalueofallderivativeinstrumentswith creditrisk-relatedcontingentfeaturesinagrossliabilityposition,thecashcollateralposted,andtheaggregateamountof additionalcollateralthatcouldberequiredtobepostedwithcounterparties.Theadditionalcollateralrequiredisthenetliability positionallowedunderthemastertradingandnettingagreementsassuming(1)thecreditrisk-relatedcontingentfeatures underlyingtheseagreementsweretriggeredonDecember31,2013,or2012,respectively,and(2)thosecounterpartieswith rightstodosorequestedcollateral:AggregateFairValueofDerivativeLiabilities (a)CashCollateralPostedPotentialAggregateAmountofAdditionalCollateralRequired (b)2013AmerenMissouri
.....................................$70$2$67AmerenIllinois
.......................................751555 Ameren.............................................$145$17$122 2012 AmerenMissouri.....................................$78$3$71AmerenIllinois.......................................1485884 Ameren.............................................$226$61$155(a)PriortoconsiderationofmastertradingandnettingagreementsandincludingNPNSandaccrualcontractexposures.
(b)Ascollateralrequirementswithcertaincounterpartiesarebasedonmastertradingandnettingagreements,theaggregateamountofadditionalcollateralrequiredtobepostedisdeterminedafterconsiderationoftheeffectsofsuchagreements.DerivativesSubjecttoRegulatoryDeferralThefollowingtablerepresentsthenetchangeinmarketvalueassociatedwithderivativesthatqualifyforregulatorydeferralfortheyearsendedDecember31,2013 and2012:Gain(Loss)RecognizedinRegulatoryLiabilitiesorRegulatoryAssets20132012 Ameren (a)Fueloils.............$(2)$(15)Naturalgas
...........
52 84 Powe r...............
10 (180)Uranium.............
(4)(1)Total$56$(112)AmerenMissouriFueloils
.............$(2)$(15)Naturalgas
...........
4 10 Powe r...............
7 (9)Uranium.............
(4)(1)Total$5$(15)Ameren IllinoisNaturalgas
...........$48$74 Powe r...............
3 29 Total$51$103(a)Amountsincludeintercompanyeliminations.NOTE8-FAIRVALUEMEASUREMENTSFairvalueisdefinedastheexchangepricethatwouldbereceivedforanassetorpaidtotransferaliability(anexitprice)intheprincipalormostadvantageousmarketfortheassetorliabilityinanorderlytransactionbetweenmarket participantsonthemeasurementdate.Weusevarious methodstodeterminefairvalue,includingmarket,income, andcostapproaches.Withtheseapproaches,weadopt certainassumptionsthatmarketparticipantswouldusein pricingtheassetorliability,includingassumptionsabout marketriskortherisksinherentintheinputstothe valuation.Inputstovaluationcanbereadilyobservable, market-corroborated,orunobservable.Weusevaluation techniquesthatmaximizetheuseofobservableinputsand minimizetheuseofunobservableinputs.Authoritative accountingguidanceestablishedafairvaluehierarchythat prioritizestheinputsusedtomeasurefairvalue.Allfinancial assetsandliabilitiescarriedatfairvalueareclassifiedand disclosedinoneofthefollowingthreehierarchylevels:Level1:Inputsbasedonquotedpricesinactivemarketsforidenticalassetsorliabilities.Level1assetsand liabilitiesareprimarilyexchange-tradedderivativesand assets,includingcashandcashequivalentsandlisted equitysecurities,suchasthoseheldinAmerenMissouri's nucleardecommissioningtrustfund.ThemarketapproachisusedtomeasurethefairvalueofequitysecuritiesheldinAmerenMissouri'snuclear decommissioningtrustfund.Equitysecuritiesinthisfund arerepresentativeoftheS&P500index,excluding securitiesofAmerenCorporation,ownersand/oroperators ofnuclearpowerplantsandthetrusteeandinvestment managers.TheS&P500indexcomprisesstocksoflarge capitalizationcompanies.Level2:Market-basedinputscorroboratedbythird-partybrokersorexchangesbasedontransactedmarket data.Level2assetsandliabilitiesincludecertainassets 114 heldinAmerenMissouri'snucleardecommissioningtrustfund,includingcorporatebondsandotherfixed-income securities,UnitedStatestreasuryandagencysecurities,and certainover-the-counterderivativeinstruments,including naturalgasandfinancialpowertransactions.Fixedincomesecuritiesarevaluedusingpricesfromindependentindustryrecognizeddatavendorswhoprovide valuesthatareeitherexchange-basedormatrix-based.The fairvaluemeasurementsoffixedincomesecurities classifiedasLevel2arebasedoninputsotherthanquoted pricesthatareobservablefortheassetorliability.Examples arematrixpricing,marketcorroboratedpricing,andinputs suchasyieldcurvesandindices.Level2fixedincome securitiesinthenucleardecommissioningtrustfundare primarilycorporatebonds,asset-backedsecuritiesand UnitedStatesagencybonds.DerivativeinstrumentsclassifiedasLevel2arevaluedbycorroboratedobservableinputs,suchaspricingservices orpricesfromsimilarinstrumentsthattradeinliquid markets.Ourdevelopmentandcorroborationprocess entailsobtainingmultiplequotesorpricesfromoutside sources.Toderiveourforwardviewtopriceourderivative instrumentsatfairvalue,weaveragethemidpointsofthe bid/askspreads.Tovalidateforwardpricesobtainedfrom outsideparties,wecomparethepricingtorecentlysettled markettransactions.Additionally,areviewofallsourcesis performedtoidentifyanyanomaliesorpotentialerrors.
Further,weconsiderthevolumeoftransactionsoncertain tradingplatformsinourreasonablenessassessmentoftheaveragedmidpoint.Naturalgasderivativecontractsare valuedbaseduponexchangeclosingpriceswithout significantunobservableadjustments.Powerderivatives contractsarevaluedbasedupontheuseofmultipleforward pricesprovidedbythirdparties.Thepricesareaveraged andshapedtoamonthlyprofilewhenneededwithout significantunobservableadjustments.Level3:Unobservableinputsthatarenotcorroboratedbymarketdata.Level3assetsandliabilitiesarevaluedby internallydevelopedmodelsandassumptionsor methodologiesthatusesignificantunobservableinputs.
Level3assetsandliabilitiesincludederivativeinstruments thattradeinlessliquidmarkets,wherepricingislargely unobservable.WevalueLevel3instrumentsbyusing pricingmodelswithinputsthatareoftenunobservablein themarket,aswellascertaininternalassumptions.Our developmentandcorroborationprocessentailsobtaining multiplequotesorpricesfromoutsidesources.Asapartof ourreasonablenessreview,anevaluationofallsourcesis performedtoidentifyanyanomaliesorpotentialerrors.Weperformananalysiseachquartertodeterminetheappropriatehierarchyleveloftheassetsandliabilities subjecttofairvaluemeasurements.Financialassetsand liabilitiesareclassifiedintheirentiretyaccordingtothe lowestlevelofinputthatissignificanttothefairvalue measurement.Allassetsandliabilitieswhosefairvalue measurementisbasedonsignificantunobservableinputs areclassifiedasLevel3.ThefollowingtabledescribesthevaluationtechniquesandunobservableinputsforthefairvalueoffinancialassetsandliabilitiesclassifiedasLevel3inthefairvaluehierarchyfortheperiodendedDecember31,2013:FairValue Weighted AverageAssetsLiabilitiesValuationTechnique(s)UnobservableInputRangeLevel3Derivativeassetandliability-commoditycontracts (a):AmerenFueloils$8$(3)OptionmodelVolatilities(%)(b)10-35 16DiscountedcashflowCounterpartycreditrisk(%)(c)(d)0.26-2 1 Power (e)21(110)DiscountedcashflowAverageforwardpeakandoff-peakpricing-forwards/swaps($/MWh)(c)25-51 32EstimatedauctionpriceforFTRs($/MW)(b)(1,594)-945305Nodalbasis($/MWh)(c)(3)-(1)(2)Counterpartycreditrisk(%)(c)(d)0.39-0.500.42Amerencreditrisk(%)(c)(d)2 (f)Fundamentalenergyproduction
modelEstimatedfuturegasprices($/mmbtu)(b)4-5 5Escalationrate(%)(b)(g)3-4 4ContractpriceallocationEstimatedrenewableenergycredit costs($/credit)(b)5-7 6Uranium-(6)DiscountedcashflowAveragebid/askconsensus
pricing($/pound)(b)34-41 36 Ameren MissouriFueloils$8$(3)Optionmodel Volatilities(%)(b)10-35 16DiscountedcashflowCounterpartycreditrisk(%)(c)(d)0.26-2 1 Power (e)21(2)DiscountedcashflowAverageforwardpeakandoff-peak pricing-forwards/swaps($/MWh)(c)25-51 40EstimatedauctionpriceforFTRs($/MW)(b)(1,594)-945305Nodalbasis($/MWh)(c)(3)-(1)(2)Counterpartycreditrisk(%)(c)(d)0.39-0.500.42AmerenMissouricreditrisk(%)(c)(d)2 (f)Uranium-(6)DiscountedcashflowAveragebid/askconsensus pricing($/pound)(b)34-41 36 115 FairValue Weighted AverageAssetsLiabilitiesValuationTechnique(s)UnobservableInputRange Ameren Illinois Power (e)$-$(108)DiscountedcashflowAverageforwardpeakandoff-peak pricing-forwards/swaps($/MWh)(b)27-36 30Nodalbasis($/MWh)(b)(4)-0 (2)AmerenIllinoiscreditrisk(%)(c)(d)2 (f)Fundamentalenergyproduction
modelEstimatedfuturegasprices($/mmbtu)(b)4-5 5Escalationrate(%)(b)(g)3-4 4ContractpriceallocationEstimatedrenewableenergycredit costs($/credit)(b)5-7 6(a)Thederivativeassetandliabilitybalancesarepresentednetofcounterpartycreditconsiderations.
(b)Generally,significantincreases(decreases)inthisinputinisolationwouldresultinasignificantlyhigher(lower)fairvaluemeasurement.
(c)Generally,significantincreases(decreases)inthisinputinisolationwouldresultinasignificantlylower(higher)fairvaluemeasurement.
(d)Counterpartycreditriskisappliedonlytocounterpartieswithderivativeassetbalances.Ameren,AmerenMissouriandAmerenIllinoiscreditriskisappliedonlytocounterpartieswithderivativeliabilitybalances.(e)Powervaluationsusevisiblethird-partypricingevaluatedbymonthforpeakandoff-peakdemandthrough2017.Valuationsbeyond2017usefundamentallymodeledpricingbymonthforpeakandoff-peakdemand.(f)Notapplicable.
(g)Escalationrateappliestopowerprices2026andbeyond.ThefollowingtabledescribesthevaluationtechniquesandunobservableinputsforthefairvalueoffinancialassetsandliabilitiesclassifiedasLevel3inthefairvaluehierarchyasofDecember31,2012:FairValue Weighted AverageAssetsLiabilitiesValuationTechniqueUnobservableInputRangeLevel3Derivativeassetandliability-commoditycontracts (a):AmerenFueloils$8$(3)OptionmodelVolatilities(%)(b)7-27 24DiscountedcashflowEscalationrate(%)(b)0.21-0.600.44Counterpartycreditrisk(%)(c)(d)0.12-1 1Amerencreditrisk(%)(c)(d)2 (e)Power (f)14(114)DiscountedcashflowAverageforwardpeakandoff-peakpower pricing-forwards/swaps($/MWh)(c)22-4731EstimatedauctionpriceforFTRs
($/MW)(b)(281)-1,851178Nodalbasis($/MWh)(c)(5)-(1)(3)Counterpartycreditrisk(%)(c)(d)0.22-1 1Amerencreditrisk(%)(c)(d)2-5 5Fundamentalenergyproduction
modelEstimatedfuturegasprices($/mmbtu)(b)4-8 6ContractpriceallocationEstimatedrenewableenergycreditcosts
($/credit)(b)5-7 6Uranium-(2)DiscountedcashflowAverageforwarduraniumpricing
($/pound)(b)43-4644 Ameren MissouriFueloils$8$(3)OptionmodelVolatilities(%)(b)7-27 24DiscountedcashflowEscalationrate(%)(b)0.21-0.600.44Counterpartycreditrisk(%)(c)(d)0.12-1 1AmerenMissouricreditrisk(%)(c)(d)2 (e)Power (f)14(3)DiscountedcashflowAverageforwardpeakandoff-peakpower pricing-forwards/swaps($/MWh)(c)24-5636EstimatedauctionpriceforFTRs
($/MW)(b)(281)-1,851178Nodalbasis($/MWh)(c)(5)-(1)(2)Counterpartycreditrisk(%)(c)(d)0.22-1 1AmerenMissouricreditrisk(%)(c)(d)2 (e)Uranium-(2)DiscountedcashflowAverageforwarduraniumpricing
($/pound)(b)43-4644 116 FairValue Weighted AverageAssetsLiabilitiesValuationTechniqueUnobservableInputRange Ameren Illinois Power (f)$-$(111)DiscountedcashflowAverageforwardpeakandoff-peakpower pricing-forwards/swaps($/MWh)(b)22-4730Nodalbasis($/MWh)(b)(5)-(1)(3)AmerenIllinoiscreditrisk(%)(c)(d)5 (e)Fundamentalenergyproduction
modelEstimatedfuturegasprices($/mmbtu)(b)4-8 6ContractpriceallocationEstimatedrenewableenergycredit costs($/credit)(b)5-7 6(a)Thederivativeassetandliabilitybalancesarepresentednetofcounterpartycreditconsiderations.
(b)Generally,significantincreases(decreases)inthisinputinisolationwouldresultinasignificantlyhigher(lower)fairvaluemeasurement.
(c)Generally,significantincreases(decreases)inthisinputinisolationwouldresultinasignificantlylower(higher)fairvaluemeasurement.
(d)Counterpartycreditriskisappliedonlytocounterpartieswithderivativeassetbalances.Ameren,AmerenMissouriandAmerenIllinoiscreditriskisappliedonlytocounterpartieswithderivativeliabilitybalances.(e)Notapplicable.
(f)Powervaluationsusevisiblethird-partypricingevaluatedbymonthforpeakandoff-peakdemandthrough2017.Valuationsbeyond2017usefundamentallymodeledpricingbymonthforpeakandoff-peakdemand.Inaccordancewithapplicableauthoritativeaccountingguidance,weconsidernonperformanceriskinourvaluationofderivativeinstrumentsbyanalyzingthecreditstandingof ourcounterpartiesandconsideringanycounterpartycredit enhancements(e.g.,collateral).Theguidancealsorequires thatthefairvaluemeasurementofliabilitiesreflectthe nonperformanceriskofthereportingentity,asapplicable.
Therefore,wehavefactoredtheimpactofourcredit standing,aswellasanypotentialcreditenhancements,into thefairvaluemeasurementofbothderivativeassetsand derivativeliabilities.Includedinourvaluation,andbasedon currentmarketconditions,isavaluationadjustmentfor counterpartydefaultderivedfrommarketdatasuchasthepriceofcreditdefaultswaps,bondyields,andcredit ratings.Amerenrecordednogainsorlossesrelatedto valuationadjustmentsforcounterpartydefaultriskin2013, 2012or2011.AtDecember31,2013,thecounterparty defaultriskliabilityvaluationadjustmentrelatedto derivativecontractstotaled$3million,lessthan$1million, and$3million,forAmeren,AmerenMissouri,andAmeren Illinois,respectively.AtDecember31,2012,the counterpartydefaultriskliabilityvaluationadjustment relatedtoderivativecontractstotaled$7million,lessthan
$1million,and$7millionforAmeren,AmerenMissouri, andAmerenIllinois,respectively.Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchy,ourassetsandliabilitiesmeasuredatfairvalueonarecurringbasisasofDecember31,2013:QuotedPricesinActiveMarketsforIdenticalAssetsorLiabilities(Level1)SignificantOtherObservableInputs(Level2)Significant Other Unobservable Inputs(Level3)Total Assets:AmerenDerivativeassets-commoditycontracts (a):Fueloils................................$1$-$8$9Naturalgas.............................-2-2 Power.................................-22123Totalderivativeassets-commoditycontracts......$1$4$29$34Nucleardecommissioningtrustfund:Cashandcashequivalents..................$3$-$-$3Equitysecurities:U.S.largecapitalization................332--332Debtsecurities:Corporatebonds.....................-52-52Municipalbonds.....................-2-2U.S.treasuryandagencysecurities.......-94-94Asset-backedsecurities................-10-10 Other..............................-1-1Totalnucleardecommissioningtrustfund.........$335$159$-$494TotalAmeren................................$336$163$29$528 117 QuotedPricesinActiveMarketsforIdenticalAssetsorLiabilities(Level1)SignificantOtherObservableInputs(Level2)Significant Other Unobservable Inputs(Level3)Total Ameren MissouriDerivativeassets-commoditycontracts (a):Fueloils................................$1$-$8$9Naturalgas.............................-1-1 Power.................................-22123Totalderivativeassets-commoditycontracts......$1$3$29$33Nucleardecommissioningtrustfund:Cashandcashequivalents..................$3$-$-$3Equitysecurities:U.S.largecapitalization................332--332Debtsecurities:Corporatebonds.....................-52-52Municipalbonds.....................-2-2U.S.treasuryandagencysecurities.......-94-94Asset-backedsecurities................-10-10 Other..............................-1-1Totalnucleardecommissioningtrustfund.........$335$159$-$494TotalAmerenMissouri........................$336$162$29$527 Ameren IllinoisDerivativeassets-commoditycontracts (a):Naturalgas.............................$-$1$-$1 Liabilities:
AmerenDerivativeliabilities-commoditycontracts (a):Fueloils................................$-$-$3$3Naturalgas.............................354-57 Power.................................-2110112 Uranium................................--66TotalAmeren................................$3$56$119$178 Ameren MissouriDerivativeliabilities-commoditycontracts (a):Fueloils................................$-$-$3$3Naturalgas.............................38-11 Power.................................-224 Uranium................................--66TotalAmerenMissouri$3$10$11$24 Ameren IllinoisDerivativeliabilities-commoditycontracts (a):Naturalgas.............................$-$46$-$46 Power.................................--108108TotalAmerenIllinois..........................$-$46$108$154(a)Thederivativeassetandliabilitybalancesarepresentednetofcounterpartycreditconsiderations.
118 Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchy,ourassetsandliabilitiesmeasuredatfairvalueonarecurringbasisasofDecember31,2012:QuotedPricesinActiveMarketsforIdenticalAssetsorLiabilities(Level1)SignificantOtherObservableInputs(Level2)Significant Other Unobservable Inputs(Level3)Total Assets:AmerenDerivativeassets-commoditycontracts (a):Fueloils.............................$4$-$8$12Naturalgas...........................-2-2 Power...............................-11415Totalderivativeassets-commoditycontracts....$4$3$22$29Nucleardecommissioningtrustfund:Cashandcashequivalents...............$1$-$-$1Equitysecurities:U.S.largecapitalization.............264--264Debtsecurities:Corporatebonds...................-47-47Municipalbonds...................-1-1U.S.treasuryandagencysecurities....-81-81Asset-backedsecurities.............-11-11 Other...........................-1-1Totalnucleardecommissioningtrustfund.......$265$141$-$406 (b)TotalAmeren.............................$269$144$22$435AmerenDerivativeassets-commoditycontracts (a):MissouriFueloils.............................$4$-$8$12Naturalgas...........................-1-1 Power...............................-11415Totalderivativeassets-commoditycontracts....$4$2$22$28Nucleardecommissioningtrustfund:Cashandcashequivalents...............$1$-$-$1Equitysecurities:U.S.largecapitalization.............264--264Debtsecurities:Corporatebonds...................-47-47Municipalbonds...................-1-1U.S.treasuryandagencysecurities....-81-81Asset-backedsecurities.............-11-11 Other...........................-1-1Totalnucleardecommissioningtrustfund.......$265$141$-$406 (b)TotalAmerenMissouri......................$269$143$22$434AmerenDerivativeassets-commoditycontracts (a): IllinoisNaturalgas...........................$-$1$-$1 Liabilities:
AmerenDerivativeliabilities-commoditycontracts (a):Fueloils.............................$1$-$3$4Naturalgas...........................7102-109 Power...............................-1114115 Uranium.............................--22TotalAmeren.............................$8$103$119$230AmerenDerivativeliabilities-commoditycontracts (a):MissouriFueloils.............................$1$-$3$4Naturalgas...........................78-15 Power...............................-134 Uranium.............................--22TotalAmerenMissouri......................$8$9$8$25 119 QuotedPricesinActiveMarketsforIdenticalAssetsorLiabilities(Level1)SignificantOtherObservableInputs(Level2)Significant Other Unobservable Inputs(Level3)Total AmerenIllinoisDerivativeliabilities-commoditycontracts (a):Naturalgas.......................$-$94$-$94 Power...........................--111111TotalAmerenIllinois.......................$-$94$111$205(a)Thederivativeassetandliabilitybalancesarepresentednetofcounterpartycreditconsiderations.(b)Balanceexcludes$2millionofreceivables,payables,andaccruedincome,net.ThefollowingtablesummarizesthechangesinthefairvalueoffinancialassetsandliabilitiesclassifiedasLevel3inthefairvaluehierarchyasofDecember31,2013:NetDerivativeCommodityContracts Ameren Missouri AmerenIllinoisAmerenFueloils:BeginningbalanceatJanuary1,2013......................................................$5$(a)$5Realizedandunrealizedgains(losses):Includedinregulatoryassets/liabilities.................................................-(a)-Totalrealizedandunrealizedgains(losses)............................................-(a)-
Purchases.........................................................................3(a)3 Sales.............................................................................(1)(a)(1)
Settlements........................................................................(2)(a)(2)EndingbalanceatDecember31,2013......................................................$5$(a)$5Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2013..............$-$(a)$-Naturalgas:
BeginningbalanceatJanuary1,2013......................................................$-$-$-Realizedandunrealizedgains(losses):Includedinregulatoryassets/liabilities.................................................-(1)(1)Totalrealizedandunrealizedgains(losses)............................................-(1)(1)
Purchases.........................................................................-11EndingbalanceatDecember31,2013......................................................$-$-$-Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2013.............$-$-$-
Power:
BeginningbalanceatJanuary1,2013......................................................$11$(111)$(100)Realizedandunrealizedgains(losses):Includedinregulatoryassets/liabilities.................................................3(18)(15)Totalrealizedandunrealizedgains(losses)............................................3(18)(15)Purchases.........................................................................40-40 Settlements
........................................................................(36)21(15)TransfersintoLevel3.................................................................(3)-(3)TransfersoutofLevel3...............................................................4-4EndingbalanceatDecember31,2013......................................................$19$(108)$(89)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2013.............$(1)$(24)$(25)Uranium:
BeginningbalanceatJanuary1,2013......................................................$(2)$(a)$(2)Realizedandunrealizedgains(losses):Includedinregulatoryassets/liabilities.................................................(3)(a)(3)Totalrealizedandunrealizedgains(losses)............................................(3)(a)(3)
Purchases.........................................................................(2)(a)(2)
Settlements........................................................................1(a)1EndingbalanceatDecember31,2013......................................................$(6)$(a)$(6)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2013.............$(2)$(a)$(2)(a)Notapplicable.
120 ThefollowingtablesummarizesthechangesinthefairvalueoffinancialassetsandliabilitiesclassifiedasLevel3inthefairvaluehierarchyasofDecember31,2012:NetDerivativeCommodityContracts Ameren Missouri AmerenIllinoisAmerenFueloils:BeginningbalanceatJanuary1,2012.......................................................$3$(a)$3Realizedandunrealizedgains(losses):Includedinregulatoryassets/liabilities..................................................(1)(a)(1)Totalrealizedandunrealizedgains(losses)............................................(1)(a)(1)
Purchases..........................................................................7(a)7 Sales..............................................................................(3)(a)(3)
Settlements.........................................................................(2)(a)(2)TransfersintoLevel3.................................................................1(a)1EndingbalanceatDecember31,2012......................................................$5$(a)$5Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2012..............$(1)$(a)$(1)Naturalgas:
BeginningbalanceatJanuary1,2012.......................................................$(14)$(160)$(174)Realizedandunrealizedgains(losses):Includedinregulatoryassets/liabilities..................................................(2)(25)(27)Totalrealizedandunrealizedgains(losses)............................................(2)(25)(27)Settlements.........................................................................11516TransfersoutofLevel3................................................................15170185EndingbalanceatDecember31,2012......................................................$-$-$-Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2012..............$-$-$-
Power (b):BeginningbalanceatJanuary1,2012.....................................................$21$(140)$81Realizedandunrealizedgains(losses):Includedinregulatoryassets/liabilities................................................11(226)(175)Totalrealizedandunrealizedgains(losses)........................................11(226)(175)
Purchases..........................................................................21-21 Sales..............................................................................(1)-(1)
Settlements
.........................................................................(37)255(22)TransfersoutofLevel3................................................................(4)-(4)EndingbalanceatDecember31,2012......................................................$11$(111)$(100)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2012..............$-$
(191)(c)$(175)Uranium:
BeginningbalanceatJanuary1,2012.......................................................$(1)$(a)$(1)Realizedandunrealizedgains(losses):Includedinregulatoryassets/liabilities..................................................(2)(a)(2)Totalrealizedandunrealizedgains(losses)............................................(2)(a)(2)
Settlements.........................................................................1(a)1EndingbalanceatDecember31,2012......................................................$(2)$(a)$(2)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2012..............$(1)$(a)$(1)(a)Notapplicable.(b)Amerenamountsincludeintercompanyeliminations.
(c)Thechangeinunrealizedlosseswasduetodecreasesinlong-termpowerpricesappliedto20-yearAmerenIllinoisswapcontracts,whichexpireinMay2032.
121 TransfersinoroutofLevel3representeither(1)existingassetsandliabilitiesthatwerepreviouslycategorizedasahigherlevelbutwererecategorizedtoLevel3becausetheinputstothemodelbecameunobservableduringtheperiod,or(2)existingassetsandliabilitiesthatwerepreviouslyclassifiedasLevel3butwererecategorizedtoahigherlevelbecausethe lowestsignificantinputbecameobservableduringtheperiod.TransfersoutofLevel3intoLevel2fornaturalgasderivatives wereduetomanagementpreviouslyusingbrokerquotationstoestimatethefairvalueofnaturalgascontractsandchanging toestimatesbaseduponexchangeclosingpriceswithoutsignificantunobservableadjustmentsin2012.Estimatesoffairvalue basedonexchangeclosingpricesaredeemedtobeamoreaccurateapproximationofnaturalgasprices.Transfersbetween Level2andLevel3forpowerderivativesandbetweenLevel1andLevel3forfueloilswereprimarilycausedbychangesin availabilityoffinancialtradesobservableonelectronicexchangesbetweentheperiodsshownbelow.AnyreclassificationsarereportedastransfersoutofLevel3atthefairvaluemeasurementreportedatthebeginningoftheperiodinwhichthechanges occur.FortheyearsendedDecember31,2013and2012,therewerenotransfersbetweenLevel1andLevel2relatedto derivativecommoditycontracts.Thefollowingtablesummarizesalltransfersbetweenfairvaluehierarchylevelsrelatedto derivativecommoditycontractsfortheyearsendedDecember31,2013and2012:20132012Ameren-derivativecommoditycontracts:TransfersintoLevel3/TransfersoutofLevel1-Fueloils
.................................................
$-$1TransfersoutofLevel3/TransfersintoLevel2-Naturalgas
..............................................
-185TransfersintoLevel3/TransfersoutofLevel2-Power
..................................................
(3)-TransfersoutofLevel3/TransfersintoLevel2-Power
..................................................
4 (4)NetfairvalueofLevel3transfers
...................................................................
$1$182AmerenMissouri-derivativecommoditycontracts:TransfersintoLevel3/TransfersoutofLevel1-Fueloils
.................................................
$-$1TransfersoutofLevel3/TransfersintoLevel2-Naturalgas
..............................................
-15TransfersintoLevel3/TransfersoutofLevel2-Power
..................................................
(3)-TransfersoutofLevel3/TransfersintoLevel2-Power
..................................................
4 (4)NetfairvalueofLevel3transfers
...................................................................
$1$12AmerenIllinois-derivativecommoditycontracts:TransfersoutofLevel3/TransfersintoLevel2-Naturalgas
..............................................
$-$170SeeNote11-RetirementBenefitsforthefairvaluehierarchytablesdetailingAmeren'spensionandpostretirementplanassetsasofDecember31,2013,aswellasatablesummarizingthechangesinLevel3planassetsduring2013.TheAmerenCompanies'carryingamountsofcashandcashequivalentsapproximatefairvaluebecauseoftheshort-termnatureoftheseinstrumentsandareconsideredtobeLevel1inthefairvaluehierarchy.Ameren'sandAmerenMissouri's carryingamountsofinvestmentsindebtsecuritiesrelatedtothetwoCTsfromthecityofBowlingGreenandAudrainCounty approximatefairvalue.Theseinvestmentsareclassifiedasheld-to-maturity.TheseinvestmentsareconsideredLevel2inthe fairvaluehierarchyastheyarevaluedbasedonsimilarmarkettransactions.TheAmerenCompanies'short-termborrowings alsoapproximatefairvaluebecauseoftheirshort-termnature.Short-termborrowingsareconsideredtobeLevel2inthefair valuehierarchyastheyarevaluedbasedonmarketratesforsimilarmarkettransactions.Theestimatedfairvalueoflong-term debtandpreferredstockisbasedonthequotedmarketpricesforsameorsimilarissuancesforcompanieswithsimilarcredit profilesoronthecurrentratesofferedtotheAmerenCompaniesforsimilarfinancialinstruments,whichfairvalue measurementisconsideredLevel2inthefairvaluehierarchy.Thefollowingtablepresentsthecarryingamountsandestimatedfairvaluesofourlong-termdebtandpreferredstockatDecember31,2013and2012:
2013 2012CarryingAmountFairValueCarryingAmountFairValue Ameren: (a)Long-termdebtandcapitalleaseobligations(includingcurrentportion)
.....$6,038$6,584$6,157$7,110Preferredstock
.................................................142118142123AmerenMissouri:Long-termdebtandcapitalleaseobligations(includingcurrentportion)
.....$3,757$4,124$4,006$4,625Preferredstock
.................................................80718074AmerenIllinois:
Long-termdebt(includingcurrentportion)
............................$1,856$2,028$1,727$2,020Preferredstock
.................................................62476249(a)Preferredstockisrecordedin"NoncontrollingInterests"ontheconsolidatedbalancesheet.
122 NOTE9-NUCLEARDECOMMISSIONINGTRUSTFUND INVESTMENTSAmerenMissourihasinvestmentsindebtandequitysecuritiesthatareheldinatrustfundforthepurposeoffundingthedecommissioningofitsCallawayenergycenter.
Wehaveclassifiedtheseinvestmentsasavailableforsale, andwehaverecordedallsuchinvestmentsattheirfair marketvalueatDecember31,2013,and2012.SeeNote10
-CallawayEnergyCenterforadditionalinformation.Investmentsinthenucleardecommissioningtrustfundhaveatargetallocationof60%to70%inequity securities,withthebalanceinvestedindebtsecurities.ThefollowingtablepresentsproceedsfromthesaleandmaturitiesofinvestmentsinAmerenMissouri'snuclear decommissioningtrustfundandthegrossrealizedgainsandlossesresultingfromthosesalesfortheyearsended December31,2013,2012,and2011:201320122011Proceedsfromsalesand maturities
.................$196$384$199Grossrealizedgains
...........
7 65Grossrealizedlosses
..........
5 24Netrealizedandunrealizedgainsandlossesaredeferredandrecordedasregulatoryassetsorregulatory liabilitiesonAmeren'sandAmerenMissouri'sbalance sheets.Thisreportingisconsistentwiththemethodusedto accountforthedecommissioningcostsrecoveredinrates.
Gainsorlossesassociatedwithassetsinthetrustfund couldresultinlowerorhigherfundingrequirementsfor decommissioningcosts,whichareexpectedtobereflected inelectricratespaidbyAmerenMissouri'scustomers.See Note2-RateandRegulatoryMatters.ThefollowingtablepresentsthecostsandfairvaluesofinvestmentsindebtandequitysecuritiesinAmerenMissouri'snucleardecommissioningtrustfundatDecember31,2013,and2012:SecurityTypeCostGrossUnrealizedGainGrossUnrealizedLossFairValue 2013Debtsecurities
....................................$157$4$2$159Equitysecurities
..................................
137 199 4 332 Cash...........................................3--3 Other (b).........................................(a)--(a)Total...........................................$297$203$6$494 2012 Debtsecurities....................................$133$8$(a)$141Equitysecurities..................................14513011264 Cash...........................................1--1 Other (b).........................................2
--2 Total...........................................$281$138$11$408(a)Amountlessthan$1million.
(b)Representspayablesrelatingtopendingsecuritypurchases,netofreceivablesrelatedtopendingsecuritysalesandinterestreceivables.ThefollowingtablepresentsthecostsandfairvaluesofinvestmentsindebtsecuritiesinAmerenMissouri'snucleardecommissioningtrustfundaccordingtotheircontractualmaturitiesatDecember31,2013:
Cost Fair ValueLessthan5years......................................................................................$93$945yearsto10years.....................................................................................3132Dueafter10years......................................................................................3333 Total................................................................................................$157$159 123 Wehaveunrealizedlossesrelatingtocertainavailable-for-saleinvestmentsincludedinourdecommissioningtrustfund,recordedasregulatoryassetsasdiscussedabove.Decommissioningwillnotoccuruntiltheoperatinglicenseforournuclearenergycenterexpires.AmerenMissourisubmittedalicenseextensionapplicationtotheNRCtoextendtheCallawayenergy center'soperatinglicenseto2044.Thefollowingtablepresentsthefairvalueandthegrossunrealizedlossesofthe available-for-salesecuritiesheldinAmerenMissouri'snucleardecommissioningtrustfund.Theyareaggregatedby investmentcategoryandthelengthoftimethatindividualsecuritieshavebeeninacontinuousunrealizedlosspositionat December31,2013:Lessthan12Months12MonthsorGreater TotalFairValue Gross UnrealizedLossesFairValue Gross UnrealizedLossesFairValue Gross Unrealized LossesDebtsecurities.....................................$72$2$(a)$(a)$72$2Equitysecurities....................................6(a)74134 Total.............................................$78$2$7$4$85$6(a)Amountlessthan$1million.NOTE10-CALLAWAYENERGYCENTERUndertheNWPA,theDOEisresponsiblefordisposingofspentnuclearfuelfromtheCallawayenergycenterand othercommercialnuclearenergycenters.UndertheNWPA, Amerenandotherutilitiesthatownandoperatethose energycentersareresponsibleforpayingthedisposal costs.TheNWPAestablishedthefeethattheseutilitiespay thefederalgovernmentfordisposingofthespentnuclear fuelatonemill,orone-tenthofonecent,foreach kilowatthourgeneratedbythoseplantsandsold.TheNWPA alsorequirestheDOEtoreviewthenuclearwastefee againstthecostofthenuclearwastedisposalprogramand toproposetotheUnitedStatesCongressanyfee adjustmentnecessarytooffsetthecostsoftheprogram.As requiredbytheNWPA,AmerenMissouriandotherutilities haveenteredintostandardcontractswiththefederal government.Thegovernment,representedbytheDOE,is responsibleforimplementingtheseprovisionsofthe NWPA.ConsistentwiththeNWPAanditsstandard contract,AmerenMissouricollectsonemillfromitselectric customersforeachkilowatthourofelectricitythatit generatesandsellsfromitsCallawayenergycenter.AlthoughboththeNWPAandthestandardcontractstatedthatthefederalgovernmentwouldbegintodispose ofspentnuclearfuelby1998,thefederalgovernmentisnot meetingitsdisposalobligation.AmerenMissourihas sufficientinstalledcapacityattheCallawayenergycenterto storeitsspentnuclearfuelgeneratedthrough2020,andit hasthecapabilityforadditionalstoragecapacityforspent nuclearfuelgeneratedthroughtheendoftheenergy center'scurrentlicensedlife.TheDOE'sdelayincarrying outitsobligationtodisposeofspentnuclearfuelfromthe Callawayenergycenterisnotexpectedtoadverselyaffect thecontinuedoperationsoftheenergycenter.InJanuary2009,thefederalgovernmentannouncedthataspentnuclearfuelrepositoryatYuccaMountain, Nevadawasunworkable.Thefederalgovernmenttooksteps toterminatetheYuccaMountainprogram,while acknowledgingitscontinuingobligationtodisposeof utilities'spentnuclearfuel.InJanuary2013,theDOEissued itsplanforthemanagementanddisposalofspentnuclearfuel.TheDOE'splancallsforapilotinterimstoragefacility tobeginoperationwithaninitialfocusonacceptingspent nuclearfuelfromshutdownreactorsitesby2021.By2025, alargerinterimstoragefacilitywouldbeavailable,co-locatedwiththepilotfacility.Theplanalsoproposestosite apermanentgeologicalrepositoryby2026,tocharacterize thesiteandtodesignandtolicensetherepositoryby2042, andtobeginoperationby2048.Inviewofthefederalgovernment'seffortstoterminatetheYuccaMountainprogram,theNuclearEnergyInstitute, anumberofindividualutilities,andtheNationalAssociation ofRegulatoryUtilityCommissionerssuedtheDOEinthe UnitedStatesCourtofAppealsfortheDistrictofColumbia Circuit,seekingthesuspensionoftheonemillnuclear wastefee,allegingthattheDOEfailedtoundertakean appropriatefeeadequacyreviewreflectingthecurrent unsettledstateofthenuclearwasteprogram.InaJune 2012decision,thecourtruledthatDOE'sfeeadequacy reviewwaslegallyinadequateandremandedthematterto theDOE.Althoughthecourtruledithasthepowertodirect theDOEtosuspendthefee,thecourtdecidedthatitwas prematuretodoso.Instead,thecourtorderedtheDOEto providewithinsixmonthsarevisedassessmentofthe amountthatshouldbecollected.InJanuary2013,theDOE issuedtherevisedassessmentrequiredbythecourt.The DOEdeterminedthat"neitherinsufficientnorexcess revenuesarebeingcollected,"anditproposedno adjustmenttotheonemillnuclearwastefee.InNovember 2013,thecourtrejectedtheDOE'srevisedassessmentand orderedtheDOEtosubmitaproposaltotheUnitedStates Congresstoreducethefeetozero.TheDOEfiledfor rehearing,howeverthereisnodeadlineforthecourttoact.
InJanuary2014,theDOE,pursuanttothecourt's November2013order,submittedtoCongressaproposalto reducethefeetozero.AsaresultoftheDOE'sfailuretobegintodisposeoftheutilities'spentnuclearfuelandfulfillitscontractual obligations,AmerenMissouriandothernuclearenergy centerownershavealsosuedtheDOEtorecovercosts incurredforongoingstorageoftheirspentfuel.Ameren Missourifiledabreachofcontractlawsuittorecovercosts thatitincurredthrough2009.Itsoughtreimbursementfor 124 thecostofrerackingtheCallawayenergycenter'sspentfuelpool,aswellascertainNRCfees,andMissouriadvalorem taxesthatAmerenMissouriwouldnothaveincurredhad theDOEperformeditscontractualobligations.InJune 2011,thepartiesreachedasettlementagreementthat includedapaymenttoAmerenMissouriof$11millionfor spentfuelstorageandrelatedcoststhrough2010.In addition,thesettlementagreementprovidesforannual recoveryofadditionalspentfuelstorageandrelatedcosts incurredfrom2011through2013withtheabilitytoextend therecoveryperiodasmutuallyagreedtobytheparties.
Thepartieshaveagreedinprincipletoextendtherecovery periodthrough2016.Asaresultofthesettlement agreement,AmerenMissourirecordedapretaxreductionof
$2millionand$2milliontoits"OperatingExpenses-Depreciationandamortization"and"OperatingExpenses-Otheroperationsandmaintenance"expenselineitems, respectively,onitsstatementofincomefortheyearended December31,2011.In2012,AmerenMissourireceiveda 2011costreimbursementof$1millionandreducedits "Propertyandplant,net"assetsonitsbalancesheetbythat amount.In2013,AmerenMissourireceiveda2012cost reimbursementof$6millionandreducedits"Propertyand plant,net"assetsonitsbalancesheetbythatamount.In March2014,AmerenMissouriplanstosubmit approximately$15millionof2013coststotheDOEfor reimbursementpursuanttothesettlementagreement.
AmerenMissourireducedits"Propertyandplant,net" assetsbythisamountwithanoffsetto"Miscellaneous accountsandnotesreceivable"onitsbalancesheetasof December31,2013.Includedinthesereimbursementsare costsrelatedtoadryspentfuelstoragefacilityAmeren MissouriisconstructingatitsCallawayenergycenter.
AmerenMissouriintendstobegintransferringspentfuel assembliestothisfacilityin2015.Untilthefacilityis completed,AmerenMissouriwill,inaccordancewiththe settlementagreement,applyforreimbursementfromthe DOEforthecosttoconstructthedryspentfuelstorage facilityalongwithrelatedallowablecosts.InDecember2011,AmerenMissourisubmittedalicenseextensionapplicationtotheNRCtoextendits Callawayenergycenter'soperatinglicensefrom2024to 2044.ThereisnodeadlinebywhichtheNRCmustacton thisapplication.AmongtherulesthattheNRChas historicallyrelieduponinapprovinglicenseextensionsare rulesdealingwiththestorageofspentnuclearfuelatthe reactorsiteandwiththeNRC'sconfidencethatpermanent disposalofspentnuclearfuelwillbeavailablewhenneeded.
InaJune2012decision,theUnitedStatesCourtofAppeals fortheDistrictofColumbiaCircuitvacatedtheserulesand remandedthecasetotheNRC,holdingthattheNRC's obligationsundertheNationalEnvironmentalPolicyAct requiredamorethoroughenvironmentalanalysisinsupport oftheNRC'swasteconfidencedecision.InJune2012,a numberofgroupspetitionedtheNRCtosuspendfinal licensingdecisionsincertainNRClicensingproceedings, includingtheCallawaylicenseextension,untiltheNRC completeditsproceedingsonthevacatedrules.InAugust2012,theNRCstatedthatitwouldnotissuelicenses dependentonthevacatedrulesuntilitappropriately addressedthecourt'sremand.InSeptember2012,theNRC directeditsstafftoissue,withintwoyears,ageneric environmentalimpactstatementandafinalruletoaddress thecourt'sruling.TheNRCalsostatedthatasite-specific analysisoftheseissuescouldbeconductedinrare circumstances.IftheCallawayenergycenter'slicenseis extended,additionalspentfuelstoragewillberequired.ElectricutilityrateschargedtocustomersprovidefortherecoveryoftheCallawayenergycenter'sdecommissioning costs,whichincludedecontamination,dismantling,andsite restorationcosts,overanassumed40-yearlifeofthenuclear center,endingwiththeexpirationoftheenergycenter's currentoperatinglicensein2024.Itisassumedthatthe Callawayenergycentersitewillbedecommissionedthrough theimmediatedismantlementmethodandremovedfrom service.AmerenandAmerenMissourihaverecordedanARO fortheCallawayenergycenterdecommissioningcostsatfair value,whichrepresentsthepresentvalueofestimatedfuture cashoutflows.Decommissioningcostsareincludedinthe costsofserviceusedtoestablishelectricratesforAmeren Missouri'scustomers.Thesecostsamountedto$7millionin eachoftheyears2013,2012,and2011.Everythreeyears, theMoPSCrequiresAmerenMissouritofileanupdatedcost studyandfundinganalysisfordecommissioningitsCallaway energycenter.Electricratesmaybeadjustedatsuchtimesto reflectchangedestimates.Thelastcoststudyandfunding analysiswerefiledwiththeMoPSCinSeptember2011.In October2012,theMoPSCissuedanorderapprovingthe stipulationandagreementbetweenAmerenMissouriandthe MoPSCstaffthatmaintainedthecurrentrateofdepositsto thetrustfundandtherateofreturnassumptionsusedinthe analysis.IfAmerenMissouri'soperatinglicenseextension applicationisapprovedbytheNRC,arevisedfunding analysiswillbeprepared,andtherateschargedtocustomers willbeadjustedaccordinglytoreflecttheoperatinglicense extensionatthetimethenexttriennialcoststudyandfunding analysisisapprovedbytheMoPSC.Amountscollectedfrom customersaredepositedinanexternaltrustfundtoprovide fortheCallawayenergycenter'sdecommissioning.Ifthe assumedreturnontrustassetsisnotearned,webelievethat itisprobablethatanysuchearningsdeficiencywillbe recoveredinrates.Thefairvalueofthenuclear decommissioningtrustfundforAmerenMissouri'sCallaway energycenterisreportedas"Nucleardecommissioningtrust fund"inAmeren'sandAmerenMissouri'sbalancesheets.
Thisamountislegallyrestrictedandmaybeusedonlyto fundthecostsofnucleardecommissioning.Changesinthe fairvalueofthetrustfundarerecordedasanincreaseor decreasetothenucleardecommissioningtrustfund,withan offsettingadjustmenttotherelatedregulatoryliability.SeeNote2-RateandRegulatoryMattersandNote9-NuclearDecommissioningTrustFundInvestments foradditionalinformationrelatedtotheCallawayenergy
center.125 NOTE11-RETIREMENTBENEFITSTheprimaryobjectiveoftheAmerenpensionandpostretirementbenefitplansistoprovideeligibleemployeeswithpensionandpostretirementhealthcareandlife insurancebenefits.Amerenoffersdefinedbenefitpension andpostretirementbenefitplanscoveringsubstantiallyall ofitsemployees.Amerenusesameasurementdateof December31foritspensionandpostretirementbenefit plans.AmerenMissouriandAmerenIllinoiseachparticipate inAmeren'ssingle-employerpensionandother postretirementplans.Ameren'squalifiedpensionplanisthe AmerenRetirementPlan.Amerenalsohasanunfunded nonqualifiedpensionplan,theAmerenSupplemental RetirementPlan,whichisavailableforcertainmanagement employeesandretireestoprovideasupplementalbenefit whentheirqualifiedpensionplanbenefitsarecappedto complywithInternalRevenueCodelimitations.Ameren's otherpostretirementplansaretheAmerenRetireeMedical PlanandtheAmerenGroupLifeInsurancePlan.
NonaffiliatedAmerencompaniesdonotparticipateinthe AmerenRetirementPlan,theAmerenSupplemental RetirementPlan,theAmerenRetireeMedicalPlan,orthe AmerenGroupLifeInsurancePlan.OnDecember2,2013,AmerencompletedthedivestitureofNewAERtoIPH.Inaccordancewiththe transactionagreement,Amerenretainedthepension obligationsasofDecember2,2013,associatedwiththe currentandformeremployeesofNewAERandits subsidiarieswhowereincludedintheAmerenRetirement PlanandtheAmerenSupplementalRetirementPlan.
Amerenalsoretainedthepostretirementbenefitobligations associatedwiththeemployeesofNewAERandits subsidiarieswhowereeligibletoretireatDecember2, 2013,fromtheAmerenRetireeMedicalPlanandthe AmerenGroupLifeInsurancePlan.IPHassumedthe existingpensionandotherpostretirementbenefit obligationsassociatedwithEEI'scurrentandformer employeesthatareincludedinEEI'ssingle-employer pensionandotherpostretirementplans.Coincidentwith Ameren'sdivestitureofNewAER,asignificantnumberofemployeesleftAmerenwhich requiredameasurementofAmeren'spensionand postretirementbenefitplanassetsandobligationsasof December2,2013,baseduponcurrentmarketconditions.
Thereductioninobligationsforthepostretirementbenefit plansandtheacceleratedrecognitionofgainspreviously recordedinaccumulatedothercomprehensiveincomethat hadnotpreviouslybeenrecognizedthroughnetperiodic benefitcostforthepensionandpostretirementbenefit plansresultedina$19millionpretaxcurtailmentgain, whichwasincludedindiscontinuedoperations.AmerencompletedanothermeasurementasofDecember31,2013,asisitshistoricalaccountingpractice, baseduponthemarketconditionsattheendoftheyear.
ExcludingtheEEIplans,whichwereassumedbyIPHduring 2013,Ameren'sunfundedobligationunderitspensionand otherpostretirementbenefitplanswas$461millionand
$1,143millionasofDecember31,2013,andDecember31, 2012,respectively.Thesenetliabilitiesarerecordedin "Othercurrentliabilities,""Pensionandother postretirementbenefits,"and"Otherassets"onAmeren's consolidatedbalancesheet.Theprimaryfactors contributingtothisunfundedobligationreductionduring 2013werea75basispointincreaseinthepensionand otherpostretirementbenefitplandiscountratesusedto determinethepresentvalueoftheobligations,andasset returnsbeingbetterthanexpected.Theoffsettothe unfundedobligationreductionwasprimarilyareductionto "Regulatoryassets"onAmeren'sconsolidatedbalance
sheet.ThefollowingtablepresentsthenetbenefitliabilityrecordedonthebalancesheetsofeachoftheAmeren CompaniesasofDecember31,2013,and2012:20132012 Ameren (a)............................$461$1,143AmerenMissouri
......................
191 464AmerenIllinois
........................
198 408(a)IncludesamountsforAmerenregistrantandnonregistrant subsidiaries.
126 Amerenrecognizestheunder-fundedstatusofitspensionandpostretirementplansasaliabilityonitsconsolidatedbalancesheet,withoffsettingentriestoaccumulatedOCIandregulatoryassets,inaccordancewithauthoritativeaccountingguidance.ThefollowingtablepresentsthefundedstatusofourpensionandpostretirementbenefitplansasofDecember31,2013,and2012.ItalsoprovidestheamountsincludedinregulatoryassetsandaccumulatedOCIatDecember31,2013,and 2012,thathavenotbeenrecognizedinnetperiodicbenefitcosts.
2013 2012PensionBenefits (a)Postretirement Benefits (a)PensionBenefits (a)Postretirement Benefits (a)Accumulatedbenefitobligationatendofyear
...............$3,698$(b)$3,829$(b)Changeinbenefitobligation:Netbenefitobligationatbeginningofyear
................$4,051$1,157$3,764$1,145Servicecost
.......................................91228122Interestcost
.......................................1634616647Participantcontributions
..............................-16-16Actuarial(gain)loss
.................................(207)(76)240(10)Curtailmentgain (c)...................................-(3)--Settlement (d).......................................-(5)--Benefitspaid
.......................................(198)(64)(200)(69)Earlyretireereinsuranceprogramreceipt
.................(b)-(b)2Federalsubsidyonbenefitspaid
........................(b)3(b)4Netbenefitobligationatendofyear
.......................3,9001,0964,0511,157Changeinplanassets:Fairvalueofplanassetsatbeginningofyear
..............3,1279382,814836Actualreturnonplanassets
...........................376156385104Employercontributions
...............................1562512845Federalsubsidyonbenefitspaid
........................(b)3(b)4Earlyretireereinsuranceprogramreceipt
.................(b)-(b)2Participantcontributions
..............................-16-16Benefitspaid
.......................................(198)(64)(200)(69)Fairvalueofplanassetsatendofyear
.....................3,4611,0743,127938Fundedstatus-deficiency
..............................43922924219AccruedbenefitcostatDecember31
......................$439$22$924$219Amountsrecognizedinthebalancesheetconsistof:Noncurrentasset (e)..................................$-$(9)$-$-Currentliability (f)....................................
31 32Noncurrentliability
..................................43630921217Netliabilityrecognized
...............................$439$22$924$219Amountsrecognizedinregulatoryassetsconsistof:Netactuarial(gain)loss
..............................$282$(71)$699$103Priorservicecost(credit)
.............................(7)(20)(6)(24)Amounts(pretax)recognizedinaccumulatedOCIconsistof:Netactuarial(gain)loss
..............................17(12)655Priorservicecost(credit)
.............................-(1)(14)(6)Total.............................................$292$(104)$744$78(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.(b)Notapplicable.
(c)EffectivewiththedivestitureofNewAERonDecember2,2013,theliabilityforactivemanagementemployeesofNewAERanditssubsidiariesnoteligibletoretirewereneithertransferredtoIPHnorretainedbyAmeren,whichresultedinacurtailmentgain.SeeNote16-Divestiture TransactionsandDiscontinuedOperationsforfurtherinformationonthedivestiture.(d)EffectivewiththedivestitureofNewAERonDecember2,2013,theliabilityforactiveunionemployeesofNewAERanditssubsidiariesnoteligibletoretirewastransferredtoIPHbasedontheassumptionofthecollectivebargainingagreementsinplace,whichresultedina settlement.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsforfurtherinformationonthedivestiture.(e)Includedin"Otherassets"onAmeren'sconsolidatedbalancesheet.
(f)Includedin"Othercurrentliabilities"onAmeren'sconsolidatedbalancesheet.
127 ThefollowingtablepresentstheassumptionsusedtodetermineourbenefitobligationsatDecember31,2013,and2012:PensionBenefitsPostretirementBenefits2013201220132012Discountrateatmeasurementdate
.....................................................
4.75%4.00%4.75%4.00%Increaseinfuturecompensation
.......................................................
3.50 3.50 3.50 3.50Medicalcosttrendrate(initial)
........................................................
--5.00 5.00Medicalcosttrendrate(ultimate)
......................................................
--5.00 5.00Yearstoultimaterate
................................................................
Amerendeterminesdiscountrateassumptionsbyidentifyingatheoreticalsettlementportfolioofhigh-qualitycorporatebondssufficienttoprovideforaplan'sprojected benefitpayments,pursuanttoauthoritativeaccounting guidanceonthedeterminationofdiscountratesusedfor definedbenefitplanobligations.Thesettlementportfolioof bondsisselectedfromapoolofover500high-quality corporatebonds.Asinglediscountrateisthendetermined; thatrateresultsinadiscountedvalueoftheplan'sbenefit paymentsthatequatestothemarketvalueoftheselected
bonds.FundingPensionbenefitsarebasedontheemployees'yearsofserviceandcompensation.Ameren'spensionplanisfundedincompliancewithincometaxregulationsandfederal fundingorregulatoryrequirements.Asaresult,Ameren expectstofunditspensionplanatalevelequaltothegreater ofthepensionexpenseorthelegallyrequiredminimum contribution.ConsideringitsassumptionsatDecember31, 2013,itsinvestmentperformancein2013,anditspension fundingpolicy,Amerenexpectstomakeannualcontributions of$20millionto$100millionineachofthenextfiveyears, withaggregateestimatedcontributionsof$270million.We expectAmerenMissouri'sandAmerenIllinois'portionofthe futurefundingrequirementstobe52%,and47%,
respectively.Theseamountsareestimates.Theymaychange basedonactualinvestmentperformance,changesininterest rates,changesinourassumptions,changesingovernment regulations,andanyvoluntarycontributions.Ourfunding policyforpostretirementbenefitsisprimarilytofundthe VoluntaryEmployeeBeneficiaryAssociation(VEBA)truststo matchtheannualpostretirementexpense.Thefollowingtablepresentsthecashcontributionsmadetoourdefinedbenefitretirementplanandtoour postretirementplansduring2013,2012,and2011:PensionBenefitsPostretirementBenefits201320122011201320122011AmerenMissouri...$60$52$43$10$9$9AmerenIllinois
.....504628 1135118 Other............
463025 4 12 Ameren (a).........15612896 2545129(a)IncludesamountsforAmerenregistrantandnonregistrant subsidiaries.InvestmentStrategyandPoliciesAmerenmanagesplanassetsinaccordancewiththe"prudentinvestor"guidelinescontainedinERISA.The investmentcommittee,totheextentauthorityisdelegatedto itbythefinancecommitteeofAmeren'sboardofdirectors, implementsinvestmentstrategyandassetallocation guidelinesfortheplanassets.Theinvestmentcommittee includesmembersofseniormanagement.Theinvestment committee'sgoalsaretwofold:first,toensurethatsufficient fundsareavailabletoprovidethebenefitsatthetimetheyare payable;second,tomaximizetotalreturnonplanassetsand minimizeexpensevolatilityconsistentwithitstolerancefor risk.Amerendelegatesinvestmentmanagementtospecialists ineachassetclass.Asappropriate,Amerenprovidesthe investmentmanagerwithguidelinesthatspecifyallowable andprohibitedinvestmenttypes.Theinvestmentcommittee regularlymonitorsmanagerperformanceandcompliance withinvestmentguidelines.Theexpectedreturnonplanassetsassumptionisbasedonhistoricalandprojectedratesofreturnforcurrentand plannedassetclassesintheinvestmentportfolio.Projected ratesofreturnforeachassetclasswereestimatedafteran analysisofhistoricalexperience,futureexpectations,andthe volatilityofthevariousassetclasses.Afterconsideringthe targetassetallocationforeachassetclass,weadjustedthe overallexpectedrateofreturnfortheportfolioforhistorical andexpectedexperienceofactiveportfoliomanagement resultscomparedwithbenchmarkreturnsandfortheeffect ofexpensespaidfromplanassets.Amerenwillusean expectedreturnonplanassetsforitspensionplanassetsand postretirementplanassetsof7.25%and7.00%,respectively, in2014.Noplanassetsareexpectedtobereturnedto Amerenduring2014.
128 Ameren'sinvestmentcommitteestrivestoassembleaportfolioofdiversifiedassetsthatdoesnotcreateasignificantconcentrationofrisks.Theinvestmentcommitteedevelopsassetallocationguidelinesbetweenassetclasses,anditcreatesdiversificationthroughinvestmentsinassetsthatdifferbytype(equity,debt,realestate,privateequity),duration,market capitalization,country,style(growthorvalue)andindustry,amongotherfactors.Thediversificationofassetsisdisplayedin thetargetallocationtablebelow.Theinvestmentcommitteealsoroutinelyrebalancestheplanassetstoadheretothe diversificationgoals.Theinvestmentcommittee'sstrategyreducestheconcentrationofinvestmentrisk;however,Amerenis stillsubjecttooverallmarketrisk.Thefollowingtablepresentsourtargetallocationsfor2014andourpensionand postretirementplans'assetcategoriesasofDecember31,2013,and2012.
Asset CategoryTargetAllocation 2014PercentageofPlanAssetsatDecember31, 2013 2012PensionPlan:Cashandcashequivalents........................................0-5%
2%2%Equitysecurities:U.S.largecapitalization.........................................29-39 36 34%U.S.smallandmid-capitalization.................................2-12 8 7%Internationalandemergingmarkets...............................9-19 14 13%Totalequity....................................................50-60 58 54%Debtsecurities..................................................35-45 36 39%Realestate.....................................................0-9 4 4%Privateequity...................................................0-4 (a)1%Total.........................................................
100%100%PostretirementPlans:
Cashandcashequivalents........................................0-10%
4%4%Equitysecurities:U.S.largecapitalization.........................................33-43 41%40%U.S.smallandmid-capitalization.................................3-13 8%8%International.................................................10-20 14%14%Totalequity....................................................55-65 63%62%Debtsecurities..................................................30-40 33%34%Total.........................................................
100%100%(a)Lessthan1%ofplanassets.Ingeneral,theUnitedStateslargecapitalizationequityinvestmentsarepassivelymanagedorindexed,whereastheinternational,emergingmarkets,UnitedStatessmallcapitalization,andUnitedStatesmid-capitalizationequityinvestmentsareactivelymanagedbyinvestmentmanagers.Debtsecuritiesincludeabroadrangeoffixedincomevehicles.Debtsecurityinvestmentsinhigh-yieldsecurities,emergingmarketsecurities,andnon-UnitedStatesdollar-denominatedsecuritiesare ownedbytheplans,butinlimitedquantitiestoreducerisk.Mostofthedebtsecurityinvestmentsareunderactive managementbyinvestmentmanagers.Realestateinvestmentsincludeprivaterealestatevehicles;however,Amerendoesnot,bypolicy,holddirectinvestmentsinrealestateproperty.Ameren'sinvestmentinprivateequityfundsconsistsof9different limitedpartnerships,withinvestedcapitalrangingfrom$0.1millionto$5millioneach,whichinvestprimarilyinadiversified numberofsmallUnitedStates-basedcompanies.Nofurthercommitmentsmaybemadetoprivateequityinvestmentswithout approvalbythefinancecommitteeoftheboardofdirectors.Additionally,Ameren'sinvestmentcommitteeallowsinvestmentmanagerstousederivatives,suchasindexfutures,exchangetradedfunds,foreignexchangefutures,andoptions,incertain situations,toincreaseortoreducemarketexposureinanefficientandtimelymanner.FairValueMeasurementsofPlanAssetsInvestmentsinthepensionandpostretirementbenefitplanswerestatedatfairvalueasofDecember31,2013.Thefairvalueofanassetistheamountthatwouldbereceiveduponsaleinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Cashandcashequivalentshaveinitialmaturitiesofthreemonthsorlessandarerecordedatcostplus accruedinterest.Thecarryingamountsofcashandcashequivalentsapproximatefairvaluebecauseoftheshort-termnature oftheseinstruments.Investmentstradedinactivemarketsonnationalorinternationalsecuritiesexchangesarevaluedat closingpricesonthelastbusinessdayonorbeforethemeasurementdate.Securitiestradedinover-the-countermarketsare valuedbasedonquotedmarketprices,brokerordealerquotations,oralternativepricingsourceswithreasonablelevelsof pricetransparency.Derivativecontractsarevaluedatfairvalue,asdeterminedbytheinvestmentmanagers(orindependent thirdpartiesonbehalfoftheinvestmentmanagers),whouseproprietarymodelsandtakeintoconsiderationexchange quotationsonunderlyinginstruments,dealerquotations,andothermarketinformation.Thefairvalueofrealestateisbasedonannualappraisalreportspreparedbyanindependentrealestateappraiser.
129 Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchydiscussedinNote8-FairValueMeasurements,thepensionplanassetsmeasuredatfairvalueasofDecember31,2013:QuotedPricesinActiveMarketsforIdentifiedAssets(Level1)SignificantOtherObservableInputs(Level2)SignificantOther Unobservable Inputs(Level3)TotalCashandcashequivalents..................................$5$39$-$44Equitysecurities:U.S.largecapitalization..................................1071,162-1,269U.S.smallandmid-capitalization...........................273--273Internationalandemergingmarkets.........................143372-515Debtsecurities:Corporatebonds........................................-860-860Municipalbonds........................................-149-149U.S.treasuryandagencysecurities.........................-256-256 Other.................................................-27-27Realestate..............................................--131131Privateequity............................................--1515Derivativeassets..........................................1--1Derivativeliabilities........................................(1)--(1)
Total...................................................$528$2,865$146$3,539Less:MedicalbenefitassetsatDecember31 (a)..................
(112)Plus:NetreceivablesatDecember31 (b)........................34Fairvalueofpensionplansassetsatyearend...................$
3,461(a)Medicalbenefit(healthandwelfare)componentforaccountsmaintainedinaccordancewithSection401(h)oftheInternalRevenueCodetofundaportionofthepostretirementobligation.(b)Receivablesrelatedtopendingsecuritysales,offsetbypayablesrelatedtopendingsecuritypurchases.Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchydiscussedinNote8-FairValueMeasurements,thepensionplanassetsmeasuredatfairvalueasofDecember31,2012:QuotedPricesinActiveMarketsforIdentifiedAssets(Level1)SignificantOtherObservableInputs(Level2)SignificantOther Unobservable Inputs(Level3)TotalCashandcashequivalents..................................$1$28$-$29Equitysecurities:U.S.largecapitalization..................................831,007-1,090U.S.smallandmid-capitalization...........................235--235Internationalandemergingmarkets.........................134301-435Debtsecurities:Corporatebonds........................................-832-832Municipalbonds........................................-176-176U.S.treasuryandagencysecurities.........................-250-250 Other.................................................-17-17Realestate..............................................--118118Privateequity............................................--1919Derivativeassets..........................................----Derivativeliabilities........................................(1)--(1)
Total...................................................$452$2,611$137$3,200Less:MedicalbenefitassetsatDecember31 (a)..................
(102)Plus:NetreceivablesatDecember31 (b)........................29Fairvalueofpensionplansassetsatyearend...................$
3,127(a)Medicalbenefit(healthandwelfare)componentforaccountsmaintainedinaccordancewithSection401(h)oftheInternalRevenueCodetofundaportionofthepostretirementobligation.(b)Receivablesrelatedtopendingsecuritysales,offsetbypayablesrelatedtopendingsecuritypurchases.
130 ThefollowingtablesummarizesthechangesinthefairvalueofthepensionplanassetsclassifiedasLevel3inthefairvaluehierarchyforeachoftheyearsendedDecember31,2013,and2012:
BeginningBalanceatJanuary1,ActualReturnonPlanAssetsRelatedtoAssetsStillHeldattheReportingDateActualReturnonPlanAssetsRelatedtoAssetsSoldDuringthePeriod Purchases,Sales,andSettlements,Net Net Transfersinto(outof)ofLevel3EndingBalanceatDecember31, 2013:Realestate
............$118$9$-$4$-$131Privateequity
..........
19 (9)11 (6)-15 2012:
Realestate............$108$7$-$3$-$118Privateequity..........23(7)8(5)-19Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchydiscussedinNote8-FairValueMeasurements,thepostretirementbenefitplansassetsmeasuredatfairvalueasofDecember31,2013:QuotedPricesinActiveMarketsforIdentifiedAssets(Level1)SignificantOtherObservableInputs(Level2)SignificantOther Unobservable Inputs(Level3)TotalCashandcashequivalents..................................$77$-$-$77Equitysecurities:U.S.largecapitalization..................................297101-398U.S.smallandmid-capitalization...........................77--77 International...........................................3996-135Debtsecurities:Corporatebonds........................................-89-89Municipalbonds........................................-103-103U.S.treasuryandagencysecurities.........................-72-72Asset-backedsecurities..................................-10-10 Other.................................................-40-40 Total...................................................$490$511$-$
1,001Plus:MedicalbenefitassetsatDecember31 (a)...................112Less:NetpayablesatDecember31 (b)..........................
(39)Fairvalueofpostretirementbenefitplansassetsatyearend........$1,074(a)Medicalbenefit(healthandwelfare)componentfor401(h)accountstofundaportionofthepostretirementobligation.These401(h)assetsareincludedinthepensionplanassetsshownabove.(b)Payablesrelatedtopendingsecuritypurchases,offsetbyMedicare,interestreceivables,andreceivablesrelatedtopendingsecuritysales.Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchydiscussedinNote8-FairValueMeasurements,thepostretirementbenefitplansassetsmeasuredatfairvalueasofDecember31,2012:QuotedPricesinActiveMarketsforIdentifiedAssets(Level1)SignificantOtherObservableInputs(Level2)SignificantOther Unobservable Inputs(Level3)TotalCashandcashequivalents....................................$83$-$-$83Equitysecurities:U.S.largecapitalization....................................24588-333U.S.smallandmid-capitalization.............................66--66 International.............................................4569-114Debtsecurities:Corporatebonds.........................................-88-88Municipalbonds.........................................-91-91U.S.treasuryandagencysecurities...........................-67-67Asset-backedsecurities....................................-18-18 Other..................................................-22-22 Total....................................................$439$443$-$882Plus:MedicalbenefitassetsatDecember31 (a)....................102Less:NetpayablesatDecember31 (b)...........................
(46)Fairvalueofpostretirementbenefitplansassetsatyearend..........$938(a)Medicalbenefit(healthandwelfare)componentfor401(h)accountstofundaportionofthepostretirementobligation.These401(h)assetsareincludedinthepensionplanassetsshownabove.(b)Payablesrelatedtopendingsecuritypurchases,offsetbyMedicare,interestreceivables,andreceivablesrelatedtopendingsecuritysales.
131 NetPeriodicBenefitCostThefollowingtablepresentsthecomponentsofthenetperiodicbenefitcostofourpensionandpostretirementbenefitplansduring2013,2012,and2011:PensionBenefitsPostretirementBenefits Ameren (a)Ameren (a)2013Servicecost
......................................................................$91$22Interestcost
......................................................................16346Expectedreturnonplanassets
........................................................(218)(62)Amortizationof:Transitionobligation
..............................................................
--Priorservicecost
................................................................(2)(6)Actuarialloss
...................................................................878Curtailmentgain
...................................................................(12)(7)Netperiodicbenefitcost (b)...........................................................$109$1 2012 Servicecost......................................................................$81$22Interestcost......................................................................16647Expectedreturnonplanassets
........................................................(208)(56)Amortizationof:Transitionobligation..............................................................-2Priorservicecost................................................................(3)(6)Actuarialloss...................................................................755Netperiodicbenefitcost (c)...........................................................$111$14 2011 Servicecost......................................................................$73$20Interestcost......................................................................17554Expectedreturnonplanassets
........................................................
(211)(50)Amortizationof:Transitionobligation
..............................................................
-2Priorservicecost
................................................................(1)(6)Actuarialloss...................................................................41 3Netperiodicbenefitcost (c)...........................................................$77$23(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.(b)Thenetperiodicbenefitcostincludesa$6millionanda$7millionnetgainforpensionbenefitsandpostretirementbenefits,respectively,whichwasincludedin"Income(loss)fromdiscontinuedoperations,netoftaxes"onAmeren'sconsolidatedstatementofincome(loss).This netgainincludesthecurtailmentgainrecognizedin2013asaresultofasignificantreductioninemployeesasoftheDecember2,2013closing dateoftheNewAERdivestiture.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsforadditionalinformationonthe
divestiture.(c)Thenetperiodicbenefitcostincludes$9millionand$-millionintotalnetcostsforpensionbenefitsandpostretirementbenefits,respectively,for2012whichwereincludedin"Income(loss)fromdiscontinuedoperations,netoftaxes"onAmeren'sconsolidatedstatementofincome (loss).Thenetperiodicbenefitcostincludes$7millionand$-millionintotalnetcostsforpensionbenefitsandpostretirementbenefits, respectively,for2011whichwereincludedin"Income(loss)fromdiscontinuedoperations,netoftaxes"onAmeren'sconsolidatedstatement ofincome(loss).SeeNote16-DivestitureTransactionsandDiscontinuedOperationsforadditionalinformationonthedivestiture.Thecurrentyearexpectedreturnonplanassetsisdeterminedprimarilybyadjustingtheprior-yearmarket-relatedassetvalueforcurrentyearcontributions,disbursements,andexpectedreturn,plus25%oftheactualreturninexcessof(orlessthan)expectedreturnforthefourprioryears.TheestimatedamountsthatwillbeamortizedfromregulatoryassetsandaccumulatedOCIintonetperiodicbenefitcostin2014areasfollows:PensionBenefitsPostretirementBenefits Ameren (a)Ameren (a)Regulatoryassets:Priorservicecost(credit)..........................................................$(1)$(4)Netactuarialloss.................................................................609AccumulatedOCI:Netactuarial(gain)loss...........................................................1(2)
Total............................................................................$60$3(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.
132 Priorservicecostisamortizedonastraight-linebasisovertheaveragefutureserviceofactiveparticipantsbenefitingundertheplanamendment.Thenetactuarial(gain)losssubjecttoamortizationisamortizedonastraight-linebasisover10 years.TheAmerenCompaniesareresponsiblefortheirshareofthepensionandpostretirementbenefitcosts.Thefollowingtablepresentsthepensioncostsandthepostretirementbenefitcostsincurredandincludedincontinuingoperationsforthe yearsendedDecember31,2013,2012,and2011:PensionCostsPostretirementCosts201320122011201320122011AmerenMissouri
.....................................$69$63$51$8$10$11AmerenIllinois
......................................
413716-411 Other..............................................
5 23--1 Ameren (a)..........................................
11510270 81423(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.Theexpectedpensionandpostretirementbenefitpaymentsfromqualifiedtrustandcompanyfundsandthefederalsubsidyforpostretirementbenefitsrelatedtoprescriptiondrugbenefits,whichreflectexpectedfutureservice,asof December31,2013,areasfollows:PensionBenefitsPostretirementBenefitsPaidfrom Qualified TrustPaidfrom Company FundsPaidfrom Qualified TrustPaidfrom Company Funds Federal Subsidy 2014..........................................$247$3$61$2$3 2015..........................................249 363 2 4 2016..........................................25536624 2017..........................................26036924 2018..........................................264372242019-2023....................................1,342143941219ThefollowingtablepresentstheassumptionsusedtodeterminenetperiodicbenefitcostforourpensionandpostretirementbenefitplansfortheyearsendedDecember31,2013,2012,and2011:PensionBenefitsPostretirementBenefits201320122011201320122011Discountrateatmeasurementdate
...........................
4.00%4.50%5.25%
4.00%4.50%5.25%Expectedreturnonplanassets
..............................
7.507.758.00 7.257.507.75Increaseinfuturecompensation
.............................
3.503.503.50 3.503.503.50Medicalcosttrendrate(initial)
..............................
---5.005.506.00Medicalcosttrendrate(ultimate)
............................
---5.005.005.00Yearstoultimaterate
.....................................
1year2yearsThetablebelowreflectsthesensitivityofAmeren'splanstopotentialchangesinkeyassumptions:PensionBenefitsPostretirementBenefitsServiceCostandInterest Cost Projected Benefit ObligationServiceCostandInterest Cost Postretirement Benefit Obligation0.25%decreaseindiscountrate...............................$(2)$109$-$320.25%increaseinsalaryscale
.................................
217--1.00%increaseinannualmedicaltrend
..........................
--2401.00%decreaseinannualmedicaltrend
.........................
--(2)(37)133 OtherAmerensponsorsa401(k)planforeligibleemployees.TheAmeren401(k)plancoveredalleligibleemployeesatDecember31,2013.Theplanallowedemployeestocontributeaportionoftheircompensationinaccordancewithspecificguidelines.Amerenmatchedapercentageoftheemployeecontributionsuptocertainlimits.Thefollowingtablepresentsthe portionofthematchingcontributiontotheAmeren401(k)planattributabletothecontinuingoperationsforeachofthe AmerenCompaniesfortheyearsendedDecember31,2013,2012,and2011:201320122011AmerenMissouri
.......................................................................$16$16$16AmerenIllinois
........................................................................
10 98 Other................................................................................
1 11 Ameren (a)............................................................................
272625(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.NOTE12-STOCK-BASEDCOMPENSATIONAmeren'slong-termincentiveplanavailableforeligibleemployeesistheshareholder-approved2006OmnibusIncentiveCompensationPlan(2006Plan),whichbecameeffectiveMay2,2006.The2006Planprovidesforamaximumof4million commonsharestobeavailableforgranttoeligibleemployeesanddirectors.The2006Planawardsmaybestockoptions, stockappreciationrights,restrictedstock,restrictedstockunits,performanceshares,performanceshareunits,cash-based awards,andotherstock-basedawards.AsummaryofnonvestedsharesatDecember31,2013,andchangesduringtheyearendedDecember31,2013,underthe2006Planarepresentedbelow:PerformanceShareUnits Share Units Weighted-averageFairValueperUnitNonvestedatJanuary1,2013
..........................................................1,192,487$33.56 Granted (a)..........................................................................840,48231.19Unearnedorforfeited (b)...............................................................(29,730)31.93Earnedandvested (c)..................................................................(784,695)31.60NonvestedatDecember31,2013
.......................................................
1,218,544$33.23(a)Includesperformanceshareunits(shareunits)grantedtocertainexecutiveandnonexecutiveofficersandothereligibleemployeesin2013underthe2006Plan.(b)Includesshareunitsgrantedin2011thatwerenotearnedbasedonperformanceprovisionsoftheawardgrants.(c)Includesshareunitsgrantedin2011thatvestedasofDecember31,2013,thatwereearnedpursuanttotheprovisionsoftheawardgrants.Alsoincludesshareunitsthatvestedduetoattainmentofretirementeligibilitybycertainemployeesandcertainemployeeswhoseemployment terminatedonDecember2,2013,withthedivestitureofNewAER.Actualsharesissuedforretirement-eligibleemployeesandformerNewAER subsidiaries'employeeswillvarydependingonactualperformanceoverthethree-yearmeasurementperiod.Amerenrecordedcompensationexpenseof$20million,$22million,and$13millionfortheyearsendedDecember31,2013,2012,and2011,respectively, andarelatedtaxbenefitof$8million,$8millionand
$5millionfortheyearsendedDecember31,2013,2012, and2011,respectively.Amerensettledperformanceshare unitsandrestrictedsharesof$11million,$11million,and
$4millionfortheyearsendedDecember31,2013,2012, and2011.Alloutstandingrestrictedsharesvestedasofthe endof2011.Therewerenosignificantcompensationcosts capitalizedrelatedtotheperformanceshareunitsduringthe yearsendedDecember31,2013,2012,and2011.Asof December31,2013,totalcompensationcostof$20million relatedtononvestedawardsnotyetrecognizedisexpected toberecognizedoveraweighted-averageperiodof 20months.PerformanceShareUnitsPerformanceshareunitshavebeengrantedunderthe2006Plan.Ashareunitvestsandentitlesanemployeeto receivesharesofAmerencommonstock(plusaccumulated dividends)if,attheendofthethree-yearperformance period,certainspecifiedperformanceormarketconditions havebeenmetandtheindividualremainsemployedby Ameren.Theexactnumberofsharesissuedpursuanttoa shareunitvariesfrom0%to200%ofthetargetaward, dependingonactualcompanyperformancerelativetothe performancegoals.ThefairvalueofeachshareunitawardedinJanuary2013underthe2006Planwasdeterminedtobe$31.19.
ThatamountwasbasedonAmeren'sclosingcommon sharepriceof$30.72atDecember31,2012,andlattice simulations.Latticesimulationsareusedtoestimate expectedsharepayoutbasedonAmeren'stotalshareholder returnforathree-yearperformanceperiodrelativetothe 134 designatedpeergroupbeginningJanuary1,2013.Thesimulationscanproduceagreaterfairvaluefortheshare unitthantheapplicableclosingcommonshareprice becausetheyincludetheweightedpayoutscenariosin whichanincreaseinthesharepricehasoccurred.The significantassumptionsusedtocalculatefairvaluealso includedathree-yearrisk-freerateof0.36%,volatilityof 12%to21%forthepeergroup,andAmeren'sattainment ofathree-yearaverageearningspersharethresholdduring theperformanceperiod.ThefairvalueofeachshareunitawardedinJanuary2012underthe2006Planwasdeterminedtobe$35.68.
ThatamountwasbasedonAmeren'sclosingcommonsharepriceof$33.13atDecember31,2011,andlattice simulations.Latticesimulationsareusedtoestimate expectedsharepayoutbasedonAmeren'stotalshareholder returnforathree-yearperformanceperiodrelativetothe designatedpeergroupbeginningJanuary1,2012.The simulationscanproduceagreaterfairvaluefortheshare unitthantheapplicableclosingcommonshareprice becausetheyincludetheweightedpayoutscenariosin whichanincreaseinthesharepricehasoccurred.The significantassumptionsusedtocalculatefairvaluealso includedathree-yearrisk-freerateof0.41%,volatilityof 17%to31%forthepeergroup,andAmeren'sattainment ofathree-yearaverageearningspersharethresholdduring theperformanceperiod.NOTE13-INCOMETAXESThefollowingtablepresentstheprincipalreasonswhytheeffectiveincometaxratedifferedfromthestatutoryfederalincometaxratefortheyearsendedDecember31,2013,2012,and2011:AmerenMissouriAmerenIllinoisAmeren 2013Statutoryfederalincometaxrate:
.............................................35%35%35%Increases(decreases)from:Depreciationdifferences
................................................-(1)-Amortizationofinvestmenttaxcredit
......................................(1)-(1)Statetax............................................................364Otherpermanentitems (a)................................................1--Effectiveincometaxrate
....................................................38%40%38%2012 Statutoryfederalincometaxrate:.............................................35%35%35%Increases(decreases)from:Depreciationdifferences................................................(1)-(1)Amortizationofinvestmenttaxcredit......................................(1)(1)(1)Statetax............................................................365Reserveforuncertaintaxpositions........................................1--Otherpermanentitems (a)................................................
--(1)Effectiveincometaxrate
....................................................37%40%37%2011 Statutoryfederalincometaxrate:
.............................................35%35%35%Increases(decreases)from:Depreciationdifferences
................................................(2)-(1)Amortizationofinvestmenttaxcredit
......................................(1)(1)(1)Statetax............................................................
3 5 4Reserveforuncertaintaxpositions
........................................
--1Taxcredits
...........................................................
--(1)Otherpermanentitems (a)................................................
1--Effectiveincometaxrate
....................................................36%39%37%(a)Permanentitemsaretreateddifferentlyforbookandtaxpurposesandprimarilyincludenon-taxableincomerelatedtocompany-ownedlifeinsuranceanddeductionsrelatedtodividendsonDRPlusandthe401(k)planforAmeren,aswellasnondeductibleexpensesrelatedto lobbyingandstockissuancecostsforAmerenMissouri.
135 Thefollowingtablepresentsthecomponentsofincometaxexpense(benefit)fortheyearsendedDecember31,2013,2012,and2011:AmerenMissouriAmerenIllinoisOtherAmeren (a)2013Currenttaxes:
Federal.............................................$136$(15)$(239)(b)$(118)State...............................................4121(43)(b)19Deferredtaxes:
Federal.............................................6499205 (b)368 State...............................................6636 (b)48Deferredinvestmenttaxcredits,amortization
..................(5)(1)-(6)Totalincometaxexpense(benefit)
..........................$242$110$(41)$311 2012 Currenttaxes:
Federal.............................................$(25)$(7)$72$40 State...............................................(10)(3)2310Deferredtaxes:
Federal.............................................24876(120)204 State...............................................4430(14)60Deferredinvestmenttaxcredits,amortization..................(5)(2)-(7)Totalincometaxexpense(benefit)..........................$252$94$(39)$307 2011 Currenttaxes:
Federal.............................................$3$(24)$15$(6)
State...............................................2(4)-(2)Deferredtaxes:
Federal.............................................129123(39)213 State...............................................3134(10)55Deferredinvestmenttaxcredits,amortization..................(4)(2)-(6)Totalincometaxexpense(benefit)..........................$161$127$(34)$254(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.
(b)TheseamountsaresubstantiallyrelatedtothereversalofunrecognizedtaxbenefitsasaresultofnewIRSguidancerelatedtothedeductibilityofexpenditurestomaintain,replaceorimprovesteamorelectricpowergenerationproperty,alongwithcasualtylossdeductionsforstorm damage.Theyalsoreflecttheincreaseindeferredtaxexpenseduetoavailablenetoperatinglosses.TheIllinoiscorporateincometaxrateincreasedfrom7.3%to9.5%,asofJanuary2011.Thetaxrateisscheduledtodecreaseto7.75%in2015,anditisscheduledtoreturnto7.3%in2025.ThiscorporateincometaxrateincreaseinIllinoisincreasedcurrentincometaxexpensein2011by$6millionand$4millionforAmerenandAmerenIllinois,respectively.Asa resultofthiscorporateincometaxrateincrease,accumulateddeferredtaxbalanceswererevalued,resultinginadecreasein deferredtaxexpenseof$2millionand$3millionforAmerenandAmerenIllinois,respectively,in2011.ThefollowingtablepresentsthedeferredtaxassetsanddeferredtaxliabilitiesrecordedasaresultoftemporarydifferencesatDecember31,2013,and2012:AmerenMissouriAmerenIllinoisOtherAmeren (a)2013Accumulateddeferredincometaxes,netliability(asset):Plantrelated
.........................................$2,513$1,243$13$3,769Regulatoryassets,net
..................................742-76Deferredemployeebenefitcosts
..........................(74)(85)(114)(273)Purchaseaccounting
...................................-(27)(1)(28)ARO...............................................(7)1-(6)Other(b)(c)............................................(17)(63)(398)(478)Totalnetaccumulateddeferredincometaxliabilities(assets)(d)....$2,489$1,071$(500)$3,060 2012 Accumulateddeferredincometaxes,netliability(asset):Plantrelated.........................................$2,385$1,145$20$3,550Regulatoryassets,net..................................73--73Deferredemployeebenefitcosts
..........................(84)(102)(137)(323)Purchaseaccounting...................................-(27)(1)(28)ARO...............................................(7)1-(6)
Other (b).............................................50(77)(223)(250)Totalnetaccumulateddeferredincometaxliabilities(assets)(e)....$2,417$940$(341)$3,016 136 (a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.(b)Includesdeferredtaxassetsrelatedtonetoperatinglossandtaxcreditcarryforwardsdetailedinthetablebelow.
(c)IncludestotalvaluationallowancesforAmeren,AmerenMissouriandAmerenIllinoisof$7million,$1million,and$1million,respectively,asofDecember31,2013.Thestatevaluationallowancesareshowninthetablebelow.(d)Includes$20millionrecordedin"Othercurrentassets"onAmerenMissouri'sbalancesheetasofDecember31,2013.
(e)Includes$26millionrecordedin"Othercurrentassets"onAmerenMissouri'sbalancesheetasofDecember31,2012.ThefollowingtablepresentsthecomponentsofdeferredtaxassetsrelatingtonetoperatinglosscarryforwardsandtaxcreditcarryforwardsatDecember31,2013:
Ameren Missouri AmerenIllinoisOtherAmeren (a)Netoperatinglosscarryforwards:
Federal (b)..............................................$61$84$215$360 State (c)................................................
3113448Totalnetoperatinglosscarryforwards.........................$64$95$249$408Taxcreditcarryforwards:
Federal (d)..............................................$12$-$76$88 State (e)................................................
1 13234Statevaluationallowance (f)................................(1)(1)(2)(4)Totaltaxcreditcarryforwards................................$12$-$106$118(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.
(b)Thesewillbegintoexpirein2028.
(c)Thesewillbegintoexpirein2017.
(d)Thesewillbegintoexpirein2029.
(e)Thesewillbegintoexpirein2014.
(f)Thisbalanceincreasedby$2million,$-millionand$-millionforAmeren,AmerenMissouriandAmerenIllinois,respectively,during2013.ThefollowingtablepresentsthecomponentsofdeferredtaxassetsrelatingtonetoperatinglosscarryforwardsandtaxcreditcarryforwardsatDecember31,2012:
Ameren Missouri AmerenIllinoisOtherAmeren (a)Netoperatinglosscarryforwards:
Federal (b)..............................................$61$61$51$173 State (c)................................................
3111327Totalnetoperatinglosscarryforwards.........................$64$72$64$200Taxcreditcarryforwards:
Federal (d)..............................................$11$-$75$86 State (e)................................................
1 12325Statevaluationallowance (f)................................(1)(1)-(2)Totaltaxcreditcarryforwards................................$11$-$98$109(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.
(b)Thesewillbegintoexpirein2028 (c)Thesewillbegintoexpirein2017.
(d)Thesewillbegintoexpirein2029.
(e)Thesebegantoexpirein2013.
(f)Thisbalanceincreasedby$1million,$-millionand$1millionforAmeren,AmerenMissouriandAmerenIllinois,respectively,during2012.
137 UncertainTaxPositionsAreconciliationofthechangeintheunrecognizedtaxbenefitbalanceduringtheyearsendedDecember31,2011,2012,and2013,isasfollows:
Ameren Missouri AmerenIllinoisOtherAmeren (a)Unrecognizedtaxbenefits-January1,2011....................$164$56$26$246Increasesbasedontaxpositionspriorto2011................15-722Decreasesbasedontaxpositionspriorto2011
................(63)(41)(21)(125)Increasesbasedontaxpositionsrelatedto2011...............13-417Changesrelatedtosettlementswithtaxingauthorities...........(5)(4)(1)
(10)Decreasesrelatedtothelapseofstatuteoflimitations...........--(2)(2)Unrecognizedtaxbenefits-December31,2011.................$124$11$13$148Increasesbasedontaxpositionspriorto2012................4-15Decreasesbasedontaxpositionspriorto2012................(7)(1)(5)
(13)Increases(decreases)basedontaxpositionsrelatedto2012.....153(1)17Changesrelatedtosettlementswithtaxingauthorities...........----Decreasesrelatedtothelapseofstatuteoflimitations...........--(1)(1)Unrecognizedtaxbenefits-December31,2012.................$136$13$7$156Increasesbasedontaxpositionspriorto2013
................-257Decreasesbasedontaxpositionspriorto2013
................(122)(16)(5)(143)Increasesbasedontaxpositionsrelatedto2013
...............16-53 (b)69Changesrelatedtosettlementswithtaxingauthorities
...........----Increasesrelatedtothelapseofstatuteoflimitations
...........1--1Unrecognizedtaxbenefits(detriments)-December31,2013
.......$31$(1)$60$90Totalunrecognizedtaxbenefitsthat,ifrecognized,wouldaffecttheeffectivetaxratesasofDecember31,2011...................$1$-$-$1Totalunrecognizedtaxbenefits(detriments)that,ifrecognized,wouldaffecttheeffectivetaxratesasofDecember31,2012...........$3$(1)$(1)$1Totalunrecognizedtaxbenefitsthat,ifrecognized,wouldaffecttheeffectivetaxratesasofDecember31,2013
...................$3$-$51 (b)$54(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.(b)PrimarilyduetotaxpositionsrelatingtotheNewAERdivestiture.Theincomestatementimpactofthisunrecognizedtaxbenefitwasincludedin"Income(loss)fromdiscontinuedoperations,netoftaxes"onAmeren'sconsolidatedstatementofincome(loss).SeeNote16-Divestiture TransactionsandDiscontinuedOperationsforadditionalinformation.TheAmerenCompaniesrecognizeinterestcharges(income)andpenaltiesaccruedontaxliabilitiesonapretaxbasisasinterestcharges(income)ormiscellaneousexpense,respectively,inthestatementsofincome.AreconciliationofthechangeintheliabilityforinterestonunrecognizedtaxbenefitsduringtheyearsendedDecember31,2011,2012,and2013,isasfollows:
Ameren Missouri AmerenIllinoisOtherAmeren (a)Liabilityforinterest-January1,2011.........................$10$2$5$17Interestincomefor2011..................................(3)(1)(7)
(11)Interestpayment........................................(1)--(1)Liabilityforinterest-December31,2011......................$6$1$(2)$5Interestcharges(income)for201 2..........................
2-(1)1Liabilityforinterest-December31,2012......................$8$1$(3)$6Interestcharges(income)for201 3..........................
(8)(1)4 (5)Liabilityforinterest-December31,2013
......................$-$-$1$1(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.AsofDecember31,2011,2012,and2013,theAmerenCompanieshaveaccruednoamountforpenaltieswithrespecttounrecognizedtaxbenefits.In2011,afinalsettlementfortheyears2005and2006wasreachedwiththeIRS.Itresultedinareductioninuncertaintaxliabilitiesof$39million,$17millionand$12millionforAmeren,AmerenMissouriandAmerenIllinois,respectively.Ameren'sfederalincometaxreturnsfortheyears2007through2011arebeforetheAppealsOfficeoftheIRS.Ameren's federalincometaxreturnfortheyear2012iscurrentlyunderexamination.
138 ItisreasonablypossiblethatasettlementwillbereachedwiththeAppealsOfficeoftheIRSinthenexttwelvemonthsfortheyears2007through2011.Thissettlement,primarilyrelatedtouncertaintaxpositionsforcapitalizationversuscurrentlydeductiblerepairexpenseandresearchdeductions,isexpectedtoresultinadecreaseinuncertaintaxbenefitsof approximately$20millionand$13millionforAmerenandAmerenMissouri,respectively.Inaddition,itisreasonablypossible thatothereventswilloccurduringthenexttwelvemonthsthatwouldcausethetotalamountofunrecognizedtaxbenefitsfor theAmerenCompaniestoincreaseordecrease.However,theAmerenCompaniesdonotbelieveanysuchincreasesor decreases,includingthedecreasefromthereasonablypossibleIRSAppealsOfficesettlementdiscussedabove,wouldbe materialtotheirresultsofoperations,financialposition,orliquidity.In2013,unrecognizedtaxbenefitsrelatedtothedeductibilityofexpenditurestomaintain,replace,orimprovesteamorelectricpowergenerationproperty,alongwithcasualtylossdeductionsforstormdamage,werereducedby$103million,
$95millionand$5millionforAmeren,AmerenMissouriandAmerenIllinois,respectively.Thisreductioninunrecognizedtax benefitsdidnotimpactoverallincometaxexpensefortheAmerenCompanies.However,theliabilityforinterestrelatedto theseunrecognizedtaxbenefitshasbeenreleased.In2013,Amerenadoptedanaccountingmethodchangeasaresultofthe recentguidanceissuedbytheIRS,establishingnewrulesfortheamountandtimingofthedeductionstomaintain,replaceor improvegenerationproperty.In2014,Amerenexpectstoadoptanaccountingmethodchangeasaresultoftherecent guidanceestablishingnewrulesfortheamountandtimingofcasualtylossdeductionsforstormdamage.Stateincometaxreturnsaregenerallysubjecttoexaminationforaperiodofthreeyearsafterfilingofthereturn.Thestateimpactofanyfederalchangesremainssubjecttoexaminationbyvariousstatesforaperiodofuptooneyearafterformal notificationtothestates.TheAmerenCompaniesdonotcurrentlyhavematerialstateincometaxissuesunderexamination,administrativeappeals,orlitigation.AmerenMissourihasanuncertaintaxpositiontracker.UnderMissouri'sregulatoryframework,uncertaintaxpositionsdonotreduceAmerenMissouri'selectricratebase.Whenanuncertainincometaxpositionliabilityisresolved,theMoPSC requires,throughtheuncertaintaxpositiontracker,thecreationofaregulatoryassetorregulatoryliabilitytoreflectthetime value,usingtheweighted-averagecostofcapitalincludedineachoftheelectricrateordersineffectbeforethetaxposition wasresolved,ofthedifferencebetweentheuncertainincometaxpositionliabilitythatwasexcludedfromratebaseandthe finaltaxliability.Theresultingregulatoryassetorliabilitywillaffectearningsintheyearitiscreatedandthenwillbeamortized overthreeyearsbeginningontheeffectivedateofnewratesestablishedinthenextelectricratecase.NOTE14-RELATEDPARTYTRANSACTIONSTheAmerenCompanieshaveengagedin,andmayinthefutureengagein,affiliatetransactionsinthenormalcourseofbusiness.Thesetransactionsprimarilyconsistof naturalgasandpowerpurchasesandsales,services receivedorrendered,andborrowingsandlendings.
Transactionsbetweenaffiliatesarereportedas intercompanytransactionsontheirfinancialstatements,but areeliminatedinconsolidationforAmeren'sfinancial statements.Belowarethematerialrelatedparty
agreements.ElectricPowerSupplyAgreementsCapacitySupplyAgreementsAmerenIllinois,asanelectricload-servingentity,mustacquirecapacitysufficienttomeetitsobligationsto customers.In2010,AmerenIllinoisusedanRFPprocess,administeredbytheIPA,tocontractcapacityfortheperiod fromJune1,2010,throughMay31,2013.Asawinning supplierinthisprocess,inApril2010,AmerenMissouri contractedtosupplyaportionofAmerenIllinois'capacity requirementsforlessthan$1millionfortheperiodfrom June1,2010,throughMay31,2013.In2012,AmerenIllinoisusedanRFPprocess,administeredbytheIPA,tocontractcapacityfortheperiod fromJune1,2012,throughMay31,2015.Asawinningsupplierinthisprocess,inApril2012,AmerenMissouri contractedtosupplyaportionofAmerenIllinois'capacity requirementsfor$1millionand$3millionforthe 12monthsendingMay31,2014,and2015,respectively.EnergySwapsandEnergyProductsAmerenIllinois,asanelectricload-servingentity,mustacquireenergysufficienttomeetitsobligationsto customers.In2011,AmerenIllinoisusedanRFPprocess,administeredbytheIPA,toprocureenergyproductsthat willsettlephysicallyfromJune1,2011,throughMay31, 2014.AmerenMissouriwasamongthewinningsuppliers intheenergyproductRFPprocess.InMay2011,Ameren MissouriandAmerenIllinoisenteredintoenergyproduct agreementsbywhichAmerenMissouriagreedtoselland AmerenIllinoisagreedtopurchaseapproximately16,800 megawatthoursatapproximately$37permegawatthour duringthe12monthsendingMay31,2012,approximately 40,800megawatthoursatapproximately$29per megawatthourduringthe12monthsendingMay31,2013, andapproximately40,800megawatthoursatapproximately
$28permegawatthourduringthe12monthsending May31,2014.Theenergyproductagreementsbetween AmerenMissouriandAmerenIllinoisfortheperiodsending May31,2012,andMay31,2013,wereforoff-peakhours
only.139 InterconnectionandTransmissionAgreementsAmerenMissouriandAmerenIllinoisarepartiestoaninterconnectionagreementfortheuseoftheirrespectivetransmissionlinesandotherfacilitiesforthedistributionof power.Theseagreementshavenocontractualexpiration date,butmaybeterminatedbyeitherpartywiththreeyears'
notice.JointOwnershipAgreementATXIandAmerenIllinoishaveajointownershipagreementtoconstruct,own,operate,andmaintaincertainelectrictransmissionassetsinIllinois.Underthetermsof thisagreement,AmerenIllinoisandATXIareresponsible fortheirapplicableshareofallcostsrelatedtothe construction,operation,andmaintenanceofelectric transmissionsystems.Currently,therearenoconstruction projectsorjointownershipofexistingassetsunderthis
agreement.InJanuary2011,ATXIrepaidadvancesfortheconstructionoftransmissionassetstoAmerenIllinoisin theamountof$52million,including$3millionofaccrued
interest.InApril2011,ATXItransferred,atcost,allofATXI'sconstructionworkinprogressassetsrelatedtoa transmissionlinetoAmerenIllinoisfor$20million.SupportServicesAgreementsAmerenServicesprovidessupportservicestoitsaffiliates.Thecostsofsupportservices,includingwages,employeebenefits,professionalservices,andother expenses,arebasedon,orareanallocationof,actualcosts incurred.Thesharedservicessupportagreementcanbe terminatedwithrespecttoaparticularaffiliatebythemutual agreementofAmerenServicesandthataffiliateorbyeither AmerenServicesorthataffiliatewith60days'noticebefore theendofacalendaryear.Inaddition,AmerenMissouriandAmerenIllinoisprovideaffiliates,primarilyAmerenServices,withaccessto theirfacilitiesforadministrativepurposes.Thecostofthe rentandfacilityservicesarebasedon,orareanallocation of,actualcostsincurred.Separately,AmerenMissouriandAmerenIllinoisprovidestorm-relatedandmiscellaneoussupportservices toeachotheronanas-neededbasis.TransmissionServicesAmerenIllinoismusttaketransmissionservicefromMISOfortheretailloaditservesintheAMILpricingzone.ATXIisoneofthetransmissionownersintheAMILpricing zone.AccordinglyATXIreceivestransmissionpayments fromAmerenIllinoisthroughtheMISObillingprocess.MoneyPoolSeeNote4-Short-termDebtandLiquidityandNote5-Long-termDebtandEquityFinancingsforadiscussionofaffiliateborrowingarrangements.CollateralPostingsUnderthetermsoftheIllinoispowerprocurementagreementsenteredintothroughRFPprocessesadministeredbytheIPA,suppliersmustpostcollateral undercertainmarketconditionstoprotectAmerenIllinois intheeventofnonperformance.Thecollateralpostingsare unilateral,meaningthatonlythesupplierswouldbe requiredtopostcollateral.Therefore,AmerenMissouri,asa winningsupplierintheRFPprocess,mayberequiredto postcollateral.AsofDecember31,2013,and2012,there werenocollateralpostingsrequiredofAmerenMissouri relatedtotheIllinoispowerprocurementagreements.ThefollowingtablepresentstheimpactonAmerenMissouriandAmerenIllinoisofrelatedpartytransactionsfortheyearsendedDecember31,2013,2012,and2011.Itisbasedprimarilyontheagreementsdiscussedaboveandthemoney poolarrangementsdiscussedinNote4-Short-termDebtandLiquidity.
AgreementIncomeStatementLineItem Ameren Missouri Ameren IllinoisAmerenMissouripowersupplyagreementsOperatingRevenues2013$3$(a)withAmerenIllinois2012(b)(a)20112(a)AmerenMissouriandAmerenIllinoisOperatingRevenues2013211rentandfacilityservices2012191 2011162AmerenMissouriandAmerenIllinoisOperatingRevenues201313miscellaneoussupportservices20121(b) 201151TotalOperatingRevenues2013$25$4 2012201 2011233 140 AgreementIncomeStatementLineItem Ameren Missouri Ameren IllinoisAmerenIllinoispowersupplyPurchasedPower2013$(a)$3agreementswithAmerenMissouri2012(a)(b)2011(a)2AmerenIllinoistransmissionPurchasedPower2013(a)2serviceswithATXI2012(a)3 2011(a)3TotalPurchasedPower2013$(a)$5 2012(a)3 2011(a)5AmerenServicessupportservicesOtherOperationsand2013$116$93 agreement Maintenance201210688 201111487Insurancepremiums (c)OtherOperationsand2013(b)(a)Maintenance2012(b)(a)2011(b)(a)TotalOtherOperationsand2013$116$93MaintenanceExpenses201210688 201111487Moneypoolborrowings(advances)Interest(Charges)2013$(b)$(b)Income2012(b)(b)2011--(a)Notapplicable.
(b)Amountlessthan$1million.
(c)RepresentsinsurancepremiumspaidtoEnergyRiskAssuranceCompany,anaffiliateforreplacementpower,propertydamage,andterrorism coverage.NOTE15-COMMITMENTSANDCONTINGENCIESWeareinvolvedinlegal,tax,andregulatoryproceedingsbeforevariouscourts,regulatorycommissions,authorities,andgovernmentalagencieswithrespecttomattersthatariseintheordinarycourseofbusiness,someofwhichinvolvesubstantialamountsofmoney.Webelievethatthefinaldispositionoftheseproceedings,exceptasotherwisedisclosedinthesenotesto ourfinancialstatements,willnothaveamaterialadverseeffectonourresultsofoperations,financialposition,orliquidity.SeealsoNote1-SummaryofSignificantAccountingPolicies,Note2-RateandRegulatoryMatters,Note10-CallawayEnergyCenter,Note14-RelatedPartyTransactions,andNote16-DivestitureTransactionsandDiscontinuedOperationsin thisreport.CallawayEnergyCenterThefollowingtablepresentsinsurancecoverageatAmerenMissouri'sCallawayenergycenteratDecember31,2013.ThepropertycoverageandthenuclearliabilitycoveragemustberenewedonApril1andJanuary1,respectively,ofeachyear.TypeandSourceofCoverageMaximumCoveragesMaximumAssessmentsPublicliabilityandnuclearworkerliability:AmericanNuclearInsurers
..............................$375$-Poolparticipation
.....................................
13,241 (a)128 (b)$13,616 (c)$128Propertydamage:NuclearElectricInsuranceLimited........................$
2,250 (d)$23 (e)EuropeanMutualAssociationforNuclearInsurance...........500 (f)-$2,750$23Replacementpower:NuclearElectricInsuranceLimited........................$490 (g)$9 (e)MissouriEnergyRiskAssuranceCompany..................$64 (h)$-(a)Providedthroughmandatoryparticipationinanindustrywideretrospectivepremiumassessmentprogram.(b)RetrospectivepremiumunderthePrice-AndersonAct.Thisissubjecttoretrospectiveassessmentwithrespecttoacoveredlossinexcessof$375millionintheeventofanincidentatanylicensedUnitedStatescommercialreactor,payableat$19millionperyear.
141 (c)LimitofliabilityforeachincidentunderthePrice-AndersonActliabilityprovisionsoftheAtomicEnergyActof1954,asamended.Acompanycouldbeassessedupto$128millionperincidentforeachlicensedreactoritoperateswithamaximumof$19millionperincidenttobepaidinacalendaryearforeachreactor.Thislimitissubjecttochangetoaccountfortheeffectsofinflationandchangesinthenumberoflicensed
reactors.(d)NuclearElectricInsuranceLimitedprovides$2.25billioninpropertydamage,decontamination,andprematuredecommissioninginsurance.Thereisa$1.7billionsublimitfornon-radiationevents,ofwhichthetop$200millionisasharedlimitwithothergeneratorspurchasingthis coverageandincludesonefreereinstatement.(e)AllNuclearElectricInsuranceLimitedinsuredplantscouldbesubjecttoassessmentsshouldlossesexceedtheaccumulatedfundsfromNuclearElectricInsuranceLimited.(f)EuropeanMutualAssociationforNuclearInsuranceprovides$500millioninexcessofthe$2.25billionpropertycoverageand$1.7billionnon-radiationcoverage.(g)Providesreplacementpowercostinsuranceintheeventofaprolongedaccidentaloutageatournuclearenergycenter.Weeklyindemnityupto$4.5millionfor52weeks,whichcommencesafterthefirsteightweeksofanoutage,plusupto$3.6millionperweekforaminimumof71 weeksthereafterforatotalnotexceedingthepolicylimitof$490million.EffectiveApril1,2013,non-radiationeventsaresub-limited to$327.6million.(h)Providesreplacementpowercostinsuranceintheeventofaprolongedaccidentaloutageatournuclearenergycenter.Thecoveragecommencesafterthefirst52weeksofinsurancecoveragefromNuclearElectricInsuranceLimitedandisaweeklyindemnityof$900,000for 71weeksinexcessofthe$3.6millionperweeksetforthabove.MissouriEnergyRiskAssuranceCompanyLLCisanaffiliateandhasreinsured thiscoveragewiththird-partyinsurancecompanies.SeeNote14-RelatedPartyTransactionsformoreinformationonthisaffiliatetransaction.ThePrice-AndersonActisafederallawthatlimitstheliabilityforclaimsfromanincidentinvolvinganylicensedUnitedStatescommercialnuclearenergycenter.Thelimitisbasedonthenumberoflicensedreactors.ThelimitofliabilityandthemaximumpotentialannualpaymentsareadjustedatleasteveryfiveyearsforinflationtoreflectchangesintheConsumer PriceIndex.Thefive-yearinflationaryadjustmentwaseffectiveSeptember10,2013.Ownersofanuclearreactorcoverthis exposurethroughacombinationofprivateinsuranceandmandatoryparticipationinafinancialprotectionpool,asestablished bythePrice-AndersonAct.LossesresultingfromterroristattacksarecoveredunderNuclearElectricInsuranceLimited'spolicies,subjecttoanindustrywideaggregatepolicylimitof$3.24billionwithina12-monthperiodforcoverageforsuchterroristacts.IflossesfromanuclearincidentattheCallawayenergycenterexceedthelimitsof,orarenotcoveredbyinsurance,orifcoverageisunavailable,AmerenMissouriisatriskforanyuninsuredlosses.Ifaseriousnuclearincidentweretooccur,it couldhaveamaterialadverseeffectonAmeren'sandAmerenMissouri'sresultsofoperations,financialposition,orliquidity.
LeasesWeleasevariousfacilities,officeequipment,plantequipment,andrailcarsundercapitalandoperatingleases.ThefollowingtablepresentsourleaseobligationsatDecember31,2013:Total20142015201620172018After5Years Ameren: (a)Minimumcapitalleasepayments (b)..........................$556$32$33$33$33$32$393Lessamountrepresentinginterest..........................2572727272726123Presentvalueofminimumcapitalleasepayments..............$299$5$6$6$6$6$270Operatingleases (c).......................................117141313131351Totalleaseobligations...................................$416$19$19$19$19$19$321AmerenMissouri:Minimumcapitalleasepayments (b)..........................$556$32$33$33$33$32$393Lessamountrepresentinginterest..........................2572727272726123Presentvalueofminimumcapitalleasepayments..............$299$5$6$6$6$6$270Operatingleases (c).......................................106111111121150Totalleaseobligations...................................$405$16$17$17$18$17$320AmerenIllinois:
Operatingleases (c).......................................$7$2$1$1$1$1$1(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.
(b)SeePropertiesunderPartI,Item2,andNote3-PropertyandPlant,Net,ofthisreportforadditionalinformation.
(c)Amountsrelatedtocertainland-relatedleaseshaveindefinitepaymentperiods.Theannualobligationof$2million,$1millionand$1millionforAmeren,AmerenMissouriandAmerenIllinoisfortheseitemsisincludedinthe2014through2018columns,respectively.
142 Thefollowingtablepresentstotalrentalexpense,includedinoperatingexpenses,fortheyearsendedDecember31,2013,2012,and2011:201320122011 Ameren (a).........................................................................$32$33$36AmerenMissouri
...................................................................
292929AmerenIllinois
.....................................................................
211917(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.OtherObligationsTosupplyaportionofthefuelrequirementsofourenergycenters,wehaveenteredintovariouslong-termcommitmentsfortheprocurementofcoal,naturalgas,nuclearfuel,andmethanegas.Wealsohaveenteredintovariouslong-termcommitmentsforpurchasedpowerandnaturalgasfordistribution.Thetablebelowpresentsourestimatedcommitmentsat December31,2013.Ameren'sandAmerenMissouri'spurchasedpowerobligationsincludea102-megawattpowerpurchase agreementwithawindfarmoperatorthatexpiresin2024.Ameren'sandAmerenIllinois'purchasedpowerobligationsinclude theAmerenIllinoispowerpurchaseagreementsenteredintoaspartoftheIPA-administeredpowerprocurementprocess.
IncludedintheOthercolumnareminimumpurchasecommitmentsundercontractsforequipment,designandconstruction, andmeterreadingservicesatDecember31,2013.Ameren'sandAmerenIllinois'Othercolumnalsoincludeobligations relatedtoIEIMA.Inaddition,theOthercolumnincludesAmeren'sandAmerenMissouri'sobligationsrelatedtoenergy efficiencyprogramsundertheMEEIAasapprovedbytheMoPSC'sDecember2012electricrateorder.AmerenMissouri expectstoincur$48millionin2014and$64millionin2015fortheseenergyefficiencyprograms.SeeNote2-Rateand RegulatoryMattersforadditionalinformationabouttheIEIMAandMEEIA.
Coal Natural Gas (a)Nuclear Fuel Purchased Power (b)MethaneGasOtherTotal Ameren: (c)2014.....................$620$323$64$308$3$201$
1,519 2015.....................642179631644143 1,195 2016.....................664908178476993 2017.....................676455855450888 2018.....................120285752551313 Thereafter.................1258215863591350 1,441 Total.....................$2,847$747$481$1,292$111$871$6,349AmerenMissouri:
2014.....................$620$62$64$19$3$127$895 2015.....................6423263194101861 2016.....................664198119440827 2017.....................676115819426794 2018.....................12085719527236 Thereafter.................1252815811091183695 Total.....................$2,847$160$481$205$111$504$4,308AmerenIllinois:
2014.....................$-$261$-$289$-$23$573 2015.....................-147-145-24316 2016.....................-71-59-24154 2017.....................-34-36-2494 2018.....................-20-33-2477 Thereafter.................-54-525-167746 Total.....................$-$587$-$1,087$-$286$1,960(a)Includesamountsforgenerationandfordistribution.
(b)ThepurchasedpoweramountsforAmerenandAmerenIllinoisinclude20-yearagreementsforrenewableenergycreditsthatwereenteredintoinDecember2010withvariousrenewableenergysuppliers.TheagreementscontainaprovisionthatallowsAmerenIllinoistoreducethe quantitypurchasedintheeventthatAmerenIllinoiswouldnotbeabletorecoverthecostsassociatedwiththerenewableenergycredits.(c)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.AmerenIllinoishasenteredintoanagreement,throughaprocessadministeredbytheIPA,topurchasepowerfromarepoweredunitattheMeredosiaenergycenterdesigned forpermanentcarbondioxidecaptureandstorage,annually overa20-yearperiodbeginningin2017,foritselectricdeliveryservicecustomers.Theagreementiscontingenton thepartiesinterestedinrepoweringtheunitatthe abandonedMeredosiaenergycenterreachingcertain milestonesrelatedtotheconstructionandcommencement ofoperationsofthisunit.Amerenwillnotrepowertheunit; 143 however,asaleoftheunittoathirdpartyispossible.Constructionhasnotbegunontheunitatthisenergy center;therefore,AmerenIllinois'obligationsarenotcertain atthistimeandconsequentlynotincludedinthetable above.Iftheplantisnotinserviceby2019,AmerenIllinois canterminatetheagreement.EnvironmentalMattersWearesubjecttovariousenvironmentallawsandregulationsenforcedbyfederal,state,andlocalauthorities.Fromthebeginningphasesofsitinganddevelopmenttothe ongoingoperationofexistingornewelectricgeneration, transmissionanddistributionfacilitiesandnaturalgas storage,transmissionanddistributionfacilities,our activitiesinvolvecompliancewithdiverseenvironmental lawsandregulations.Theselawsandregulationsaddress emissions,dischargestowater,waterusage,impactstoair, land,andwater,andchemicalandwastehandling.Complex andlengthyprocessesarerequiredtoobtainandrenew approvals,permits,orlicensesfornew,existingormodified facilities.Additionally,theuseandhandlingofvarious chemicalsorhazardousmaterialsrequirereleaseprevention plansandemergencyresponseprocedures.TheEPAisdevelopingenvironmentalregulationsthatwillhaveasignificantimpactontheelectricutilityindustry.
Overtime,compliancewiththeseregulationscouldbe particularlycostlyforcertaincompanies,includingAmeren Missouri,thatoperatecoal-firedenergycenters.Significant newrulesproposedorpromulgatedincludetheregulation ofCO 2emissionsfromnewenergycenters;revisednationalambientairqualitystandardsforozone,fineparticulates, SO 2,andNO xemissions;theCSAPR,whichwouldhaverequiredfurtherreductionsofSO 2emissionsandNO xemissionsfromenergycenters;aregulationgoverning managementofCCRandcoalashimpoundments;the MATS,whichrequirereductionofemissionsofmercury, toxicmetals,andacidgasesfromenergycenters;revised NSPSforparticulatematter,SO 2,andNO xemissionsfromnewsources;neweffluentstandardsapplicabletowaste waterdischargesfromenergycentersandnewregulations undertheCleanWaterActthatcouldrequiresignificant capitalexpenditures,suchasmodificationstowaterintake structuresornewcoolingtowersatourenergycenters.The EPAisexpectedtoproposeCO 2standardsforexistingfossilfuel-firedelectricgenerationunitsinthefuture.Thesenew andproposedregulations,ifadopted,maybechallenged throughlitigation,sotheirultimateimplementation,aswell asthetimingofanysuchimplementation,isuncertain.
Althoughmanydetailsofthesefutureregulationsare unknown,thecombinedeffectsofthenewandproposed environmentalregulationsmayresultinsignificantcapital expendituresandincreasedoperatingcostsoverthenext fivetotenyearsforAmerenandAmerenMissouri.
Compliancewiththeseenvironmentallawsandregulations couldbeprohibitivelyexpensiveorcouldresultinthe closureoralterationoftheoperationofsomeofourenergy centers.AmerenandAmerenMissouriwouldexpectthese coststoberecoverablethroughrates,butthenatureandtimingofcosts,aswellastheapplicableregulatory framework,couldresultinregulatorylag.AsofDecember31,2013,AmerenandAmerenMissouriestimatecapitalexpenditureinvestmentsof
$275millionto$350millionoverthenextfiveyearsto complywithexistingenvironmentalregulations.This estimateassumesthatCCRwillcontinuetoberegulatedas nonhazardous.Thisestimatedoesnotincludetheimpacts ofregulationsproposedbytheEPAundertheCleanWater Act,inMarch2011,regardingcoolingwaterintake structuresortheimpactoftheeffluentstandardsapplicable tosteam-electricgeneratingunitsthattheEPAproposedin April2013,asthetechnologyrequirementsofthesefinal rulesarenotyetknown.Considerableuncertaintyremains inthisestimate.Theactualamountofcapitalexpenditure investmentstocomplywithexistingenvironmental regulationsmayvarysubstantiallyfromtheaboveestimate duetouncertaintyastotheprecisecompliancestrategies thatwillbeusedandtheirultimatecost,amongother
things.AmerenMissouri'scurrentenvironmentalcomplianceplanforairemissionsincludesburningultra-low-sulfurcoal andinstallingneworoptimizingexistingpollutioncontrol equipment.AmerenMissourihastwoscrubbersatitsSioux energycenter,whichareusedtoreduceSO 2emissionsandotherpollutants.Currently,AmerenMissouri'scompliance planassumestheinstallationofadditionalcontrols includingmercurycontroltechnologyandprecipitator upgradesatmultipleenergycenterswithinitscoal-fired fleetduringthenextfiveyears.However,AmerenMissouri iscurrentlyevaluatingitsoperationsandoptionsto determinehowtocomplywiththeMATSandotherrecently finalizedorproposedEPAregulations.Additionalcontrols maybenecessary,dependingupontheresolutionofthe CSAPRlitigationcurrentlypendingbeforetheUnitedStates SupremeCourtorifanewrulereplacingCAIRisultimately adopted,asdiscussedbelow.IfCSAPRisimplemented, AmerenMissourimayberequiredtoinstalltwoadditional scrubberswithinthenexttenyears.EnvironmentalcompliancecostsatsomeofAmerenMissouri'senergycenterscouldbeprohibitiveand additionalcapitalinvestmentorcontinuedoperations unwarranted.AmerenMissouri'scapitalexpendituresand othercostsaresubjecttoMoPSCprudencereviews,which couldresultincostdisallowancesaswellasregulatorylag.Thefollowingsectionsdescribethemoresignificantenvironmentallawsandrulesthataffectorcouldaffectour
operations.CleanAirActBothfederalandstatelawsrequiresignificantreductionsinSO 2andNO xemissionsthatresultfromburningfossilfuels.In2005,theEPAissuedregulationswithrespecttoSO 2andNO xemissions(theCAIR).InDecember2008,theUnitedStatesCourtofAppealsforthe DistrictofColumbiaCircuitfoundvariousaspectsofthelaw tobeunlawfulandremandedtheCAIRtotheEPAfor 144 furtheraction,butallowedtheCAIR'scap-and-tradeprogramstoremaineffectiveuntiltheyarereplacedbythe EPA.InJuly2011,theEPAissuedtheCSAPRastheCAIR replacement.TheCSAPRregulationswerevacatedbythe UnitedStatesCourtofAppealsfortheDistrictofColumbia Circuit.TheEPAappealedtotheUnitedStatesSupreme Court,andarulingisexpectedbyJune2014.TheEPAwill continuetoadministertheCAIRuntilanewruleis ultimatelyadoptedoruntiltheUnitedStatesSupremeCourt overturnsthedecisiontovacatetheCSAPR.InDecember2011,theEPAissuedtheMATSundertheCleanAirAct,whichrequireemissionreductionsfor mercuryandotherhazardousairpollutants,suchasacid gases,toxicmetals,andhydrogenchlorideemissions.The MATSdonotrequireaspecificcontroltechnologyto achievetheemissionreductions.TheMATSwillapplyto eachunitatacoal-firedpowerplant;howeverincertain cases,emissioncompliancecanbeachievedbyaveraging emissionsfromsimilarelectricgeneratingunitsatthesame powerplant.ComplianceisrequiredbyApril2015or,witha case-by-caseextension,byApril2016.AmerenMissouri's LabadieandMeramecenergycentersrequestedandwere grantedextensionstoApril2016tocomplywiththeMATS.EmissionAllowancesTheCleanAirActcreatedmarketablecommoditiescalledemissionallowancesundertheacidrainprogram,theNOxbudgettradingprogram,andtheCAIR.Ameren MissouriexpectstohaveenoughCAIRallowancesfor2014 toavoidmakingexternalpurchasestocomplywiththese
programs.GreenhouseGasRegulationInDecember2009,theEPAissuedits"endangermentfinding"undertheCleanAirAct,whichstatedthatgreenhousegasemissions,includingCO 2,endangerhumanhealthandwelfareandthatemissionsofgreenhousegases frommotorvehiclescontributetothatendangerment.In March2010,theEPAissuedadeterminationthat greenhousegasemissionsfromstationarysources,suchas powerplants,wouldbesubjecttoregulationunderthe CleanAirActeffectivethebeginningof2011.Asaresultof theseactions,wearerequiredtoconsidertheemissionsof greenhousegasesinanyairpermitapplication.Recognizingthedifficultiespresentedbyregulatingatoncevirtuallyallemittersofgreenhousegases,theEPA issuedthe"TailoringRule,"whichestablishednewhigher emissionthresholdsbeginninginJanuary2011for regulatinggreenhousegasemissionsfromstationary sources,suchaspowerplants.Therulerequiresanysource thatalreadyhasanoperatingpermittohavegreenhouse-gas-specificprovisionsaddedtoitspermitsuponrenewal.
Currently,allAmerenenergycentershaveoperatingpermits thathavebeenmodifiedtoaddressgreenhousegas emissions.TheTailoringRulealsoprovidesthatifprojects performedatmajorsourcesornewmajorsourcesresultinanincreaseinemissionsofgreenhousegasesoveran applicableannualthreshold,suchprojectscouldtrigger permittingrequirementsundertheNSRprogramsandthe applicationofbestavailablecontroltechnologytocontrol greenhousegasemissions.InJune2012,theUnitedStates CourtofAppealsfortheDistrictofColumbiaCircuitupheld theTailoringRule.Industrygroupsandacoalitionofstates filedpetitionsinApril2013requestingthattheUnited StatesSupremeCourtreviewthecircuitcourt'sdecision.In October2013,theUnitedStatesSupremeCourtgranted limitedreviewofonepetition,agreeingtoconsiderwhether theCleanAirActauthorizestheEPAtoregulateemissions ofgreenhousegasesfromstationarysources,including powerplants,asaresultofitsdeterminationtoregulate greenhousegasemissionsfrommotorvehicles.Arulingis expectedin2014.InJune2013,theObamaadministrationannouncedthatithaddirectedtheEPAtosetCO 2emissionsstandardsforbothnewandexistingpowerplants.TheEPApublished proposedregulationsinJanuary2014thatwouldset revisedCO 2emissionsstandardsfornewelectricitygeneratingunits.Theproposedstandardswouldestablish separateemissionslimitsfornewnaturalgas-firedplants andnewcoal-firedplants.Inaddition,theObama administrationdirectedtheEPAtoproposeaCO 2 emissionsstandardforexistingpowerplantsbyJune2014andto finalizesuchstandardbyJune2015.Currently,theAmeren Companiesareunabletopredicttheoutcomeorimpactsof suchfutureregulations.Futurefederalandstatelegislationorregulationsthatmandatelimitsontheemissionofgreenhousegasesmay resultinsignificantincreasesincapitalexpendituresand operatingcosts,which,inturn,couldleadtoincreased liquidityneedsandhigherfinancingcosts.These compliancecostscouldbeprohibitiveatsomeofour energycenters,astheexpectedreturnfromthese investments,atcurrentmarketpricesforenergyand capacity,mightnotjustifytherequiredcapitalexpenditures ortheircontinuedoperation,whichcouldresultinthe impairmentoflong-livedassetsifcostsarenotrecovered throughrates.TotheextentthatAmerenMissourirequests recoveryofthesecoststhroughrates,itsregulatorsmight delayordenytimelyrecovery.Mandatorylimitsonthe emissionofgreenhousegasescouldincreasecostsforour customersorhaveamaterialadverseimpactonAmeren's andAmerenMissouri'sresultsofoperations,financial position,andliquidity.Totheextentinvestmentsin environmentalcontroltechnologyarereflectedand recoveredonatimelybasisinratebase,Ameren'sand AmerenMissouri'searningsmaybenefitfromincreased investmentinsuchcontroltechnology.NSRandCleanAirLitigationInJanuary2011,theDepartmentofJusticeonbehalfoftheEPAfiledacomplaintagainstAmerenMissouriintheUnitedStatesDistrictCourtfortheEasternDistrictof Missouri.TheEPA'scomplaint,asamendedinOctober 2013,allegesthatinperformingprojectsatitsRushIsland 145 coal-firedenergycenterin2007and2010,AmerenMissouriviolatedprovisionsoftheCleanAirActand Missourilaw.InJanuary2012,theUnitedStatesDistrict Courtgranted,inpart,AmerenMissouri'smotionto dismissvariousaspectsoftheEPA'spenaltyclaims.The EPA'sclaimsforunspecifiedinjunctivereliefremain.The trialinthismatteriscurrentlyscheduledtobegininJanuary 2015.AmerenMissouribelievesitsdefensesare meritoriousandwilldefenditselfvigorously.However,there canbenoassurancesthatitwillbesuccessfulinitsefforts.Ultimateresolutionofthesematterscouldhaveamaterialadverseimpactonthefutureresultsofoperations, financialposition,andliquidityofAmerenandAmeren Missouri.Aresolutioncouldresultinincreasedcapital expendituresfortheinstallationofpollutioncontrol equipment,increasedoperationsandmaintenanceexpenses, andpenalties.Weareunabletopredicttheultimateresolution ofthesemattersorthecoststhatmightbeincurred.CleanWaterActInMarch2011,theEPAannouncedaproposedruleapplicabletocoolingwaterintakestructuresatexisting powerplants.Theproposedrulewouldimposestandards forreducingthemortalityofaquaticorganismsimpinged ontheplant'sintakescreensorentrainedthroughthe plant'scoolingwatersystem.Allcoal-fired,nuclear,and combinedcycleenergycentersatAmerenMissouriwith coolingwatersystemsaresubjecttothisproposedrule.
TheEPAhasagreedtofinalizetheruleinApril2014.When finalizedthefinalrulecouldhaveanadverseeffectonour resultsofoperations,financialposition,andliquidityifits implementationrequirestheinstallationofcoolingtowers orextensivemodificationstothecoolingwatersystemsat ourenergycenters.InApril2013,theEPAannounceditsproposaltorevisetheeffluentlimitationguidelinesapplicabletosteamelectric generatingunitsundertheCleanWaterAct.Effluentlimitation guidelinesarenationalstandardsforwastewaterdischarges tosurfacewaterthatarebasedontheeffectivenessof availablecontroltechnology.TheEPA'sproposedruleraised severalcomplianceoptionsthatwouldprohibiteffluent dischargesofcertain,butnotall,wastestreamsandimpose morestringentlimitationsoncertaincomponentsin wastewaterdischargesfrompowerplants.Iftheruleis enactedasproposed,AmerenMissouriwouldbesubjectto therevisedlimitationsbeginningasearlyasJuly1,2017,but nolaterthanJuly1,2022.Amerenisreviewingtheproposed ruleandevaluatingitspotentialimpactonoperations.The EPAexpectstoissuefinalguidelinesinApril2014.AshManagementInMay2010,theEPAannouncedproposednewregulationsregardingthemanagementanddisposalofCCR,whichcouldaffectfuturedisposalandhandlingcosts atourenergycenters.Thoseproposedregulationsinclude twooptionsformanagingCCRs,undereithersolidor hazardouswasteregulations,buteitheralternativewould allowforsomecontinuedbeneficialuses,suchasrecyclingofCCRwithoutclassifyingitaswaste.TheEPAannounced thatitsApril2013proposedrevisionstotheeffluent limitationsapplicabletosteamelectricgeneratingunits wouldapplytoashpondsandCCRmanagementandthatit intendedtoalignthisproposalwiththeCCRruleswhen finalized.TheEPAisexpectedtoissueafinalrulein December2014.AmerenMissouriiscurrentlyevaluatingall oftheproposedregulationstodeterminewhethercurrent managementofCCR,includingbeneficialreuse,andtheuse oftheashpondsshouldbealtered.AmerenMissouriis evaluatingthepotentialcostsassociatedwithcompliance withtheproposedregulationofCCRimpoundmentsand landfills,whichcouldbematerial,ifsuchregulationsare
adopted.RemediationWeareinvolvedinanumberofremediationactionstocleanupsitesimpactedbyhazardoussubstancesasrequiredbyfederalandstatelaw.Suchstatutesrequirethat responsiblepartiesfundremediationactionsregardlessof theirdegreeoffault,thelegalityoforiginaldisposal,orthe ownershipofadisposalsite.AmerenMissouriandAmeren Illinoishaveeachbeenidentifiedbythefederalorstate governmentsasapotentiallyresponsibleparty(PRP)at severalcontaminatedsites.AsofDecember31,2013,AmerenIllinoisownedorwasotherwiseresponsiblefor44formerMGPsitesin Illinois.Thesesitesareinvariousstagesofinvestigation, evaluation,remediation,andclosure.Basedoncurrent estimatedplans,AmerenIllinoiscouldsubstantially concluderemediationeffortsatmostofthesesitesby2018.
TheICCpermitsAmerenIllinoistorecoverremediationand litigationcostsassociatedwithitsformerMGPsitesfrom itselectricandnaturalgasutilitycustomersthrough environmentaladjustmentrateriders.Toberecoverable, suchcostsmustbeprudentlyincurred.Costsaresubjectto annualreviewbytheICC.AsofDecember31,2013,AmerenMissourihasoneremainingformerMGPsiteforwhichremediationis scheduled.RemediationiscompleteattheotherAmeren MissouriformerMGPsites.AmerenMissouridoesnot currentlyhavearateridermechanismthatpermitsitto recoverfromutilitycustomersremediationcostsassociated withMGPsites.Thefollowingtablepresents,asofDecember31,2013,theestimatedobligationtocompletetheremediationof theseformerMGPsites.
Estimate Recorded Liability (a)LowHigh Ameren....................$278$338$278AmerenMissouri.............454AmerenIllinois...............274333274(a)Recordedliabilityrepresentstheestimatedminimumprobableobligations,asnootheramountwithintherangeprovidedabetterestimate.
146 ThescopeandextenttowhichtheseformerMGPsitesareremediatedmayincreaseasremediationeffortscontinue.Considerableuncertaintyremainsinthese estimates,asmanyfactorscaninfluencetheultimateactual costs,includingsitespecificunanticipatedunderground structures,thedegreetowhichgroundwateris encountered,regulatorychanges,localordinancesandsite accessibility.Theactualcostsmayvarysubstantiallyfrom theseestimates.AmerenIllinoisusedanoff-sitelandfill,whichAmerenIllinoisdidnotown,inconnectionwiththeformeroperation ofanenergycenter.AmerenIllinoiscouldberequiredto performcertainmaintenanceactivitiesassociatedwiththat landfill.AsofDecember31,2013,AmerenIllinoisestimated theobligationrelatedtothissiteat$0.5millionto$6million.
AmerenIllinoisrecordedaliabilityof$0.5millionto representitsestimatedminimumobligationforthissite,as nootheramountwithintherangewasabetterestimate.
AmerenIllinoisisalsoresponsibleforthecleanupofsome undergroundstoragetanksandawatertreatmentplantin Illinois.AsofDecember31,2013,AmerenIllinoisrecordeda liabilityof$0.8milliontorepresentitsestimateofthe obligationforthesesites.AmerenMissouriisinvestigatingandaddressingtwowastesitesinMissouriasaresultoffederalagency mandates.Oneofthecleanupsitesisaformercoaltar distillerylocatedinSt.Louis,Missouri.In2008,theEPA issuedanadministrativeordertoAmerenMissouri pertainingtothisdistilleryoperatedbyKoppersCompany oritspredecessorandsuccessorcompanies.WhileAmeren Missouriisthecurrentownerofthesite,itdidnotconduct anyofthemanufacturingoperationsinvolvingcoaltarorits byproducts.AmerenMissouri,alongwithtwootherPRPs, iscurrentlyperformingasiteinvestigation.Asof December31,2013,AmerenMissouriestimatedits obligationat$2millionto$5million.AmerenMissouri recordedaliabilityof$2milliontorepresentitsestimated minimumobligation,asnootheramountwithintherange wasabetterestimate.AmerenMissouri'sotheractive federalagency-mandatedcleanupsiteinMissouriisinCape Girardeau.AmerenMissouriwasacustomerofanelectrical equipmentrepairanddisposalcompanythatpreviously operatedafacilityatthissite.Atrustwasestablishedinthe early1990sbyseveralbusinessesandgovernmental agenciestofundtheinvestigationandcleanupofthissite, whichwascompletedin2005.AmerenMissourianticipates thatthistrustfundwillbesufficienttocompletethe remainingadjacentoff-sitecleanup,andtherefore,Ameren MissouribelievesithasnoliabilityatDecember31,2013, forthissite.AmerenMissourialsohasafederalagencymandatetocompleteaninvestigationforasiteinIllinois.In2000,the EPAnotifiedAmerenMissouriandnumerousother companies,includingSolutia,thatformerlandfillsand lagoonsinSauget,Illinois,maycontainsoiland groundwatercontamination.Thesesitesareknownas SaugetArea2.Fromabout1926until1976,Ameren MissourioperatedanenergycenteradjacenttoSaugetArea2.AmerenMissouricurrentlyownsaparcelof propertythatwasonceusedasalandfill.Undertheterms ofanAdministrativeOrderonConsent,AmerenMissouri joinedwithotherpotentiallyresponsiblepartiestoevaluate theextentofpotentialcontaminationwithrespecttoSauget Area2.TheSaugetArea2investigationsoverseenbytheEPAhavebeencompleted.InDecember2013,theEPAissued itsrecordofdecisionapprovingtheinvestigationandthe remediationalternativesrecommendedbythepotentially responsibleparties.Furthernegotiationamongthe potentiallyresponsiblepartieswilldeterminehowtofund theimplementationoftheEPAapprovedcleanupremedies.
AsofDecember31,2013,AmerenMissouriestimatedits obligationrelatedtoSaugetArea2at$0.3millionto
$10million.AmerenMissourirecordedaliabilityof
$0.3milliontorepresentitsestimatedminimumobligation, asnootheramountwithintherangewasabetterestimate.InDecember2012,AmerenMissourisignedanadministrativeorderwiththeEPAandagreedtoinvestigate soilandgroundwaterconditionsatanAmerenMissouri ownedsubstationinSt.Charles,Missouri.Asof December31,2013,AmerenMissouriestimatedthe obligationrelatedtothecleanupat$1.6millionto
$4.5million.AmerenMissourirecordedaliabilityof
$1.6milliontorepresentitsestimatedminimumobligation forthissite,asnootheramountwithintherangewasa betterestimate.Ouroperationsorthoseofourpredecessorcompaniesinvolvetheuseof,disposalof,andinappropriate circumstances,thecleanupofsubstancesregulatedunder environmentallaws.Weareunabletodeterminewhether suchpracticeswillresultinfutureenvironmental commitmentsorwillaffectourresultsofoperations, financialposition,orliquidity.Pumped-storageHydroelectricFacilityBreachInDecember2005,therewasabreachoftheupperreservoiratAmerenMissouri'sTaumSaukpumped-storagehydroelectricenergycenter.Thisresultedinsignificant floodinginthelocalarea,whichdamagedastatepark.The rebuiltTaumSaukenergycenterbecamefullyoperationalin April2010.AmerenMissourihadliabilityinsurancecoveragefortheTaumSaukincident,subjecttocertainlimitsand deductibles.AsofDecember31,2013,AmerenMissouri hadaninsurancereceivablebalanceof$68million.InJune2010,AmerenMissourisuedaninsurancecompanythatwasprovidingAmerenMissouriwithliability coverageonthedateoftheTaumSaukincident.Inthe litigation,filedintheUnitedStatesDistrictCourtforthe EasternDistrictofMissouri,AmerenMissouriclaimedthat theinsurancecompanybreacheditsdutytoindemnify AmerenMissouriforthelossesresultingfromtheincident.
InJanuary2011,thedistrictcourtruledthattheparties mustfirstpursuealternativedisputeresolutionand enforcedtheforumselectionclauseoftheircoverage 147 agreement.TheforumselectionclauserequiresuseofNewYorklawandeffectivelyrequiresmandatoryarbitration.
AmerenMissouriappealedtheJanuary2011rulingtothe UnitedStatesCourtofAppealsfortheEighthCircuit.In August2012,thecourtofappealsremandedthecasetothe districtcourtforconsiderationofwhetherMissouripublic policyvoidstheforumselectionclause.InSeptember2013, thedistrictcourtruledthatMissouripublicpolicydoesvoid theforumselectionclause.Separately,inApril2012,AmerenMissourisuedasecondinsurancecompanythatwasprovidingAmeren MissouriwithliabilitycoverageonthedateoftheTaum Saukincident.IntheApril2012litigation,whichispending intheUnitedStatesDistrictCourtfortheEasternDistrictof Missouri,AmerenMissouriclaimedtheinsurancecompany breacheditsdutytoindemnifyAmerenMissouriforthe lossesresultingfromtheincident.Theinsurancecompany filedamotiontocompelarbitration,whichthedistrictcourt denied.InApril2013,theUnitedStatesCourtofAppealsfor theEighthCircuitaffirmedthedistrictcourt'sdenialofthe insurer'smotionandremandedthecasetothedistrict
court.Ameren'sandAmerenMissouri'sresultsofoperations,financialpositionandliquiditycouldbeadverselyaffectedif AmerenMissouri'sremainingliabilityinsuranceclaimsare notpaidbyinsurers.Asbestos-relatedLitigationAmeren,AmerenMissouriandAmerenIllinoishavebeennamed,alongwithnumerousotherparties,inanumberoflawsuitsfiledbyplaintiffsclaimingvarying degreesofinjuryfromasbestosexposureatourpresentor formerenergycenters.MosthavebeenfiledintheCircuit CourtofMadisonCounty,Illinois.Thetotalnumberof defendantsnamedineachcasevaries,withtheaverage numberofpartiesbeing82asofDecember31,2013.Each lawsuitseeksunspecifieddamagesthat,ifawardedattrial, typicallywouldbesharedamongthevariousdefendants.InconnectionwiththedivestitureofNewAERtoIPH,certainagreementsrelatedtoformerAmerenIllinoisenergy centerswereamendedtoprovidethatAmerenIllinoiswill continuetoretainasbestosexposure-relatedliabilitiesfor claimsarisingorexistingfromactivitiespriortoitstransfer oftheownershipoftheformerAmerenIllinoisenergy centerstoNewAER.IPHwillberesponsibleforany asbestos-relatedclaimsarisingfromactivitiesthatoccur aftertheeffectivedateofthedivestiture.Noclaimsarose solelyfromactivitiesintheperiodafterthetransferofthe energycentersfromAmerenIllinoistoAER,butbeforeIPH tookownershipofNewAER.Thefollowingtablepresentsthependingasbestos-relatedlawsuitsfiledagainsttheAmerenCompaniesasof December31,2013:
Ameren Ameren Missouri AmerenIllinoisTotal (a)147507 1(a)TotaldoesnotequalthesumofthesubsidiaryunitlawsuitsbecausesomeofthelawsuitsnamemultipleAmerenentitiesas defendants.AtDecember31,2013,Ameren,AmerenMissouriandAmerenIllinoishadliabilitiesof$11million,$5million,and$6million,respectively,recordedtorepresenttheirbest estimateoftheirobligationsrelatedtoasbestosclaims.AmerenIllinoishasatariffridertorecoverthecostsofIPasbestos-relatedlitigationclaims,subjecttothe followingterms:90%ofcashexpendituresinexcessofthe amountincludedinbaseelectricratesaretoberecovered fromatrustfundthatwasestablishedwhenAmeren acquiredIP.AtDecember31,2013,thetrustfundbalance was$23million,includingaccumulatedinterest.Ifcash expendituresarelessthantheamountinbaserates, AmerenIllinoiswillcontribute90%ofthedifferencetothe trustfund.Oncethetrustfundisdepleted,90%ofallowed cashexpendituresinexcessofbaserateswillberecovered throughchargesassessedtocustomersunderthetariff rider.Theriderwillpermitrecoveryfromcustomerswithin IP'shistoricalserviceterritory.AmerenIllinoisMunicipalTaxesAmerenIllinoisreceivedtaxliabilitynoticesfromthecityofO'Fallon,Illinois,relatingtoprior-periodelectricandnaturalgasmunicipaltaxes.ThecityallegesthatAmeren Illinoisfailedtocollectprior-periodtaxesfrommorethan 2,400accounts,primarilyinannexedareas,fortheperiod 2004through2012.InJuly2013,theO'Falloncity administratorissuedanorderstatingthatAmerenIllinois wasliabletothecityofO'Fallonfor$4million.InAugust 2013,AmerenIllinoisfiledanappealandastayofthe O'Falloncityadministrator'sordertotheSt.ClairCounty CircuitCourt.Inaddition,inDecember2012,thecityof PeoriaissuedataxliabilitynoticeallegingthatAmeren Illinoisfailedtocollectprior-periodmunicipaltaxesfrom certainaccounts.InSeptember2013,ahearingofficer issuedanorderstatingthatAmerenIllinoiswasliabletothe cityofPeoriafor$0.5million.AmerenIllinoisfiledan appealandastayoftheordertothePeoriaCountyCircuit Court.AmerenIllinoisbelievesitsdefensestothe allegationsaremeritoriousandwilldefenditselfvigorously.
AsofDecember31,2013,AmerenIllinoisestimatedits obligationat$1millionto$5million.AmerenIllinois recordedaliabilityof$1milliontorepresentitsestimated minimumobligationtothecityofO'Fallonandthecityof Peoria,asnootheramountwithintherangewasabetter
estimate.Inaddition,attheendof2012,fiveothercitiesissuedtaxliabilitynoticesallegingthatAmerenIllinoisfailedto collectprior-periodtaxesfromcertainaccounts.Atthis time,itisprematureinAmerenIllinois'reviewofthe additionalnoticesreceivedattheendof2012toreasonably estimateanylikelihoodofloss.
148 NOTE16-DIVESTITURETRANSACTIONSANDDISCONTINUEDOPERATIONSTransactionAgreementwithIPHOnDecember2,2013,AmerencompletedthedivestitureofNewAERtoIPH,inaccordancewiththetransactionagreementbetweenAmerenandIPHdated March14,2013,asamendedbyaletteragreemententered intobyAmerenandIPHonDecember2,2013.IPH acquiredalloftheoutstandinglimitedliabilityinterestsin NewAER,whichwasanewlycreated,whollyowned subsidiaryofAER.Priortotheclosing,AEReffecteda reorganizationthat,amongotherthings,transferred substantiallyallofitsassetsandliabilitiestoNewAER, otherthan(i)anyoutstandingdebtobligationsofAERto Amerenoritsothersubsidiaries,exceptforcertain intercompanybalancesdiscussedbelow;(ii)theassetsand liabilitiesassociatedwithGenco'sMeredosiaand Hutsonvilleenergycenters;(iii)theobligationsrelatingto Ameren'ssingle-employerpensionandpostretirement benefitplans;and(iv)thedeferredincometaxassetsand liabilitiesassociatedwithAmeren'sownershipofthese retainedassetsandliabilities.Amerenretainedcertainpensionandpostretirementbenefitobligationsassociatedwithcurrentandformer employeesofAER,withtheexceptionofthepensionand postretirementbenefitobligationsassociatedwithcurrent andformeremployeesofEEI,whichwereassumedbyIPH.
AmerenretainedtheMeredosiaandHutsonvilleenergy centers,includingtheirAROs,whichtotaled$31millionas ofDecember31,2013.Theseenergycenterswere abandonedandhadanimmaterialpropertyandplantasset balanceasofDecember31,2013.AllotherAROs associatedwithAERwereassumedbyNewAERorby RocklandCapital,thethird-partybuyeroftheGrandTower energycenter,asdiscussedbelow.UpontheIPHtransactionagreementclosing,allintercompanyagreementsanddebtthatexistedbetween NewAERanditssubsidiaries,ontheonehand,andAmeren anditsnon-NewAERaffiliates,ontheotherhand,withthe exceptionofcertainagreements,suchassupplyobligations toAmerenIllinois,anotefromMarketingCompanyto Amerenrelatingtocashcollateralthatremained outstandingatclosing,Gencomoneypooladvancesand certainNewAERsubsidiarymoneypoolborrowings,were eitherretainedorcancelledbyAmeren,withoutanycostor obligationtoIPHorNewAERanditssubsidiaries.
Immediatelypriortotheclosingofthedivestiture,the moneypoolborrowingsthroughwhichAmerenprovided cashcollateraltoMarketingCompanywereconvertedtoa notepayabletoAmeren,whichispayable,withinterest, 24monthsafterclosingorsoonerascashcollateral requirementsarereduced.Thebalanceofthenotewas
$18millionatDecember31,2013,andisreflectedon Ameren'sconsolidatedbalancesheetin"Otherassets."Pursuanttothetransactionagreement,asamendedbytheDecember2,2013,letteragreement,Amerencaused
$235millionofcashtoberetainedatNewAERimmediately priortoclosing,whichincludedamountspreviouslypaidtoGencoforthesaleoftheElgin,GibsonCity,andGrand TowerenergycenterstoMedinaValleyaswellasadditional amountsretainedatGenco,AERG,andMarketing Company.Within120daysaftertheclosingofthe divestiture,aworkingcapitaladjustmentwillbefinalized, whichmayresultinacashpaymentfromAmerentoIPHor fromIPHtoAmeren.Amerenreceivednocashproceedsas aresultofthedivestitureofNewAER.Pursuanttothe transactionagreement,asamended,Amerenisobligatedto payupto$39millionforcertaincontingentliabilities.Of theseliabilities,$29millionareincludedin"Otherdeferred creditsandliabilities"and$10millionareincludedin "Accountsandwagespayable"onAmeren'sDecember31, 2013consolidatedbalancesheet.Asaconditiontothetransactionagreement,Gencoexercisedtheamendedputoptionagreementforthesaleof theElgin,GibsonCity,andGrandTowergas-firedenergy centerstoMedinaValley.InOctober2013,Genco completedthesaleoftheElgin,GibsonCity,andGrand Towergas-firedenergycenterstoMedinaValley,receiving totalpaymentsof$137.5million.Thethird-partysaleof theseenergycenterstoRocklandCapitalwascompletedon January31,2014andisdiscussedbelow.SaleofGas-firedEnergyCentersPriortoentryintothetransactionagreementwithIPH,Gencoenteredintoaputoptionagreement,asamended,withMedinaValley.ThisagreementgaveGencotheoption toselltoMedinaValleytheElgin,GibsonCity,andGrand Towergas-firedenergycentersforthefairmarketvalueof theenergycenters,asdeterminedbythreeindependent appraisers.Gencoexerciseditsoption,andinOctober2013 completeditssaleoftheElgin,GibsonCity,andGrand Towergas-firedenergycenterstoMedinaValleyfor
$137.5million,whichwasthefairvalueofthegas-fired energycentersasdeterminedbythethreeindependent
appraisers.ThetransactionagreementwithIPH,asamended,providesthatiftheElgin,GibsonCity,andGrandTower gas-firedenergycentersaresubsequentlysoldbyMedina ValleyandifMedinaValleyreceivesadditionalproceeds fromsuchsale,MedinaValleywillpayGencoanyproceeds fromsuchsale,netoftaxesandotherexpenses,inexcess ofthe$137.5millionpreviouslypaidtoGenco.OnJanuary31,2014,MedinaValleycompletedthesaleoftheElgin,GibsonCity,andGrandTowergas-fired energycenterstoRocklandCapitalforatotalpurchase priceof$168million,beforeconsiderationofanetworking capitaladjustment.TheagreementwithRocklandCapital required$17millionofthepurchasepricetobeheldin escrowuntilthetwo-yearanniversaryoftheclosingofthe saletofundcertainindemnityobligations,ifany,ofMedina Valley.Thenetworkingcapitaladjustmentwillbefinalized within120daysaftertheJanuary31,2014,closingdate.As aresult,pendingfinalresolutionofthenetworkingcapital adjustment,taxes,andotherexpenses,MedinaValley expectstopayGencoanyremainingportionoftheescrow 149 balanceonJanuary31,2016.AmerenwillnotrecordagainfromitssaleoftheElgin,GibsonCity,andGrandTowergas-firedenergycenters.DiscontinuedOperationsPresentationAsofMarch14,2013,AmerendeterminedthatNewAERandtheElgin,GibsonCity,andGrandTowergas-firedenergycentersqualifiedfordiscontinuedoperationspresentation.Inaddition,effectiveDecember2,2013,coincidingwiththecompletionofthedivestitureofNewAERtoIPH,AmerendeterminedthattheMeredosiaandHutsonvilleenergycentershadbeenabandoned.AmerenisprohibitedfromoperatingtheseenergycentersthroughDecember31,2020,asaprovisionofthe IllinoisPollutionControlBoard'sNovember2013ordergrantingIPHavarianceoftheMPS.Asaresult,Amerendetermined theMeredosiaandHutsonvilleenergycentersqualifiedfordiscontinuedoperationspresentationasofDecember2,2013.NewAERandtheElgin,GibsonCity,GrandTower,Meredosia,andHutsonvilleenergycentershavebeenclassifiedcollectivelyinAmeren'sconsolidatedfinancialstatementsasdiscontinuedoperationsforallperiodspresentedinthisreport.
Thedisposalgroupshavebeenaggregatedinthedisclosuresbelow.Thefollowingtablepresentsthecomponentsof discontinuedoperationsinAmeren'sconsolidatedstatementofincome(loss)fortheyearsendedDecember31,2013,2012 and2011:Yearended201320122011Operatingrevenues.........................................................................$1,037$1,047$1,358Operatingexpenses
.........................................................................
(1,207)(a)(3,474)(b)(1,150)Operatingincome(loss)
......................................................................(170)(2,427)208Otherincome(loss).........................................................................(1)-1Interestcharges
............................................................................(39)(56)(64)Income(loss)beforeincometaxes
.............................................................(210)(2,483)145Incometax(expense)benefit
..................................................................(13)987(56)Income(loss)fromdiscontinuedoperations,netoftaxes............................................$(223)$(1,496)$89(a)Includesa$201millionpretaxlossondisposalrelatingtotheNewAERdivestiture.(b)Includesanoncashpretaxassetimpairmentchargeof$628milliontoreducethecarryingvalueofAERG'sDuckCreekenergycentertoitsestimatedfairvalueunderheldandusedaccountingguidance.Inaddition,includesanoncashpretaxassetimpairmentchargeof$1.95billion toreducethecarryingvaluesofalltheAERcoalandnaturalgas-firedenergycenters,excepttheJoppacoal-firedenergycenter,totheir estimatedfairvalues,underheldandusedaccountingguidance,asaresultofthedecisioninDecember2012thatAmerenintendedtoexitthe MerchantGenerationbusiness.UponcompletionofthedivestitureofNewAER,Amerenfinalizeditslossondisposal.AmerenreceivednocashproceedsfromIPHforthedivestitureofNewAER.
Amerenrecordedapretaxchargetoearningsrelatedtothe NewAERdivestitureof$201millionfortheyearended December31,2013.Thelosswasrecordedin"Operating expenses"withinthecomponentsofthediscontinued operationsstatementofincome(loss).Theultimatelosson disposalmaydifferasaresultofthefinalizationofthe workingcapitaladjustmentwithin120daysofclose.In2013,Amerenadjustedtheaccumulateddeferredincometaxesonitsconsolidatedbalancesheettoreflectthe excessoftaxbasisoverfinancialreportingbasisofitsstock investmentinAER.Thischangeinbasisresultedina discontinuedoperationsdeferredtaxexpenseof
$99million,whichwaspartiallyoffsetbytheexpectedtax benefitsof$86millionrelatedtothepretaxlossfrom discontinuedoperationsincludingthelossondisposal, duringtheyearendedDecember31,2013.Thefinaltax basisoftheAERdisposalgroupandtherelatedtaxbenefit resultingfromthetransactionagreementwithIPHare dependentupontheresolutionoftaxmattersunderIRS audit,includingtheadoptionofrecentlyissuedguidance fromtheIRSrelatedtotangiblepropertyrepairsandothermatters.Asaresult,taxexpenseandbenefitsultimately realizedindiscontinuedoperationsmaydiffermaterially fromthoserecordedasofDecember31,2013.AstheElgin,GibsonCity,andGrandTowergas-firedenergycenterdisposalgroupcontinuedtomeetthe discontinuedoperationscriteriaatDecember31,2013, Amerenevaluatedwhetheranyimpairmentexistedby comparingthedisposalgroup'scarryingvaluetothe estimatedfairvalueofthedisposalgroup,lesscosttosell.
InDecember2012,Amerenrecordedanoncashlong-lived assetimpairmentchargetoreducethecarryingvalueof AER'senergycenters,includingtheElgin,GibsonCity,and GrandTowergas-firedenergycenters,totheirestimated fairvaluesundertheaccountingguidanceforheldandused assets.Amerendidnotrecordanyadditionalimpairment relatingtotheElgin,GibsonCity,andGrandTowerenergy centersfortheyearendedDecember31,2013.As discussedabove,onJanuary31,2014,MedinaValley completedthesaleoftheElgin,GibsonCity,andGrand Towergas-firedenergycenterstoRocklandCapitalfora totalpurchasepriceof$168million,beforeconsiderationof anetworkingcapitaladjustment.Amerenwillnotrecognize againfromthethirdpartysaletoRocklandCapitalforany valueinexcessofits$137.5millioncarryingvalueforthis 150 disposalgroupsinceanyexcessamountthatMedinaValleymayreceive,netoftaxesandotherexpenses,overthe carryingvalue,willultimatelybepaidtoGencopursuantto thetransactionagreementwithIPH.Long-livedAssetImpairmentsNewAERandtheElgin,GibsonCity,andGrandTowerenergycenterswereimpairedunderheldandusedaccountingguidancein2012andtheMeredosiaand Hutsonvilleenergycenterswereimpairedunderheldand usedaccountingguidancein2011.The2012and2011 impairmentsarediscussedbelow.AsaresultoftheDecember2012decisionthatAmerenintendedto,anditwasprobablethatitwould,exitthe MerchantGenerationsegmentbeforetheendofthe MerchantGenerationlong-livedassets'previously estimatedusefullives,Amerendeterminedthatestimated undiscountedcashflowsduringtheperiodinwhichit expectedtocontinuetoowncertainenergycenterswould beinsufficienttorecoverthecarryingvalueofthoseenergy centers.Accordingly,Amerenrecordedanoncashpretax impairmentchargeof$1.95billioninthefourthquarterof 2012toreducethecarryingvaluesofalloftheMerchant Generation'scoalandnaturalgas-firedenergycenters, excepttheJoppacoal-firedenergycenter,totheirestimated fairvalues.Theestimatedundiscountedcashflowsofthe Joppacoal-firedenergycenterexceededitscarryingvalue; therefore,theJoppacoal-firedenergycenterwas
unimpaired.Inearly2012,theobservablemarketpriceforpowerfordeliveryinthatyearandinfutureyearsintheMidwest sharplydeclinedbelow2011levels,primarilybecauseof decliningnaturalgaspricesandtheimpactofthestayof theCSAPR.Asaresultofthissharpdeclineinthemarket priceofpowerandtherelatedimpactonelectricmargins, Gencodeceleratedtheconstructionoftwoscrubbersatits NewtonenergycenterinFebruary2012.Thesharpdecline inthemarketpriceofpowerinearly2012andtherelatedimpactonelectricmargins,aswellasthedecelerationof constructionofGenco'sNewtonenergycenterscrubber project,causedAmerentoevaluate,duringthefirstquarter of2012,whetherthecarryingvaluesofMerchant Generationcoal-firedenergycenterswererecoverable.
AERG'sDuckCreekenergycenter'scarryingvalueexceeded itsestimatedundiscountedfuturecashflows.Asaresult, Amerenrecordedanoncashpretaxassetimpairment chargeof$628milliontoreducethecarryingvalueofthat energycentertoitsestimatedfairvalueduringthefirst quarterof2012.InDecember2011,GencoceasedoperationsatitsMeredosiaandHutsonvilleenergycenters.Asaresult, Amerenrecordedanoncashpretaxassetimpairment chargeof$26milliontoreducethecarryingvalueofthe MeredosiaandHutsonvilleenergycenterstotheirestimated fairvaluesanda$4millionimpairmentformaterialsand
supplies.Keyassumptionsusedinthedeterminationofestimatedundiscountedcashflowsforthe2012and2011 long-livedassetstestedforimpairmentunderheldandused accountingguidancediscussedaboveincludedforward priceprojectionsforenergyandfuelcosts,theexpectedlife ordurationofownershipofthelong-livedassets, environmentalcompliancecostsandstrategies,and operatingcosts.Thosesamecashflowassumptions,along withadiscountrateandterminalyearearningsmultiples, wereusedtoestimatethefairvalueofeachenergycenter.
Theseassumptionsaresubjecttoahighdegreeof judgmentandcomplexity.Thefairvalueestimateofthese long-livedassetswasbasedonacombinationofthe incomeapproach,whichconsidersdiscountedcashflows, andthemarketapproach,whichconsidersmarketmultiples forsimilarassetswithintheelectricgenerationindustry.
Thefairvalueestimatewasdeterminedusingobservable inputsandsignificantunobservableinputs,whichare Level3inputsasdefinedbyaccountingguidanceforfair valuemeasurements.
151 ThefollowingtablepresentsthecarryingamountsofthecomponentsofassetsandliabilitiessegregatedonAmeren'sconsolidatedbalancesheetsasdiscontinuedoperationsatDecember31,2013,and2012:December31,2013December31,2012AssetsofdiscontinuedoperationsCashandcashequivalents
........................................................
$-$25Accountsreceivableandunbilledrevenue
............................................
5 102Materialsandsupplies
...........................................................
5 135Mark-to-marketderivativeassets
...................................................
-102Propertyandplant,net
...........................................................
142 748Accumulateddeferredincometaxes,net (a)............................................
13 395Otherassets
...................................................................
-104Totalassetsofdiscontinuedoperations
................................................$165$1,611LiabilitiesofdiscontinuedoperationsAccountspayableandothercurrentobligations
.......................................
$5$141Mark-to-marketderivativeliabilities
.................................................
-63Long-termdebt,net
.............................................................
-824Assetretirementobligations (b).....................................................
40 97Pensionandotherpostretirementbenefits
...........................................
-40Otherliabilities
.................................................................
-28Totalliabilitiesofdiscontinuedoperations
..............................................$45$1,193Accumulatedothercomprehensiveincome (c)............................................
$-$19Noncontrollinginterest (d)...........................................................
$-$8(a)TheDecember31,2013balanceprimarilyconsistsofdeferredincometaxassetsrelatedtotheabandonedMeredosiaandHutsonvilleenergy centers.(b)IncludesAROsassociatedwiththeabandonedMeredosiaandHutsonvilleenergycentersof$31millionand$26millionatDecember31,2013,and2012,respectively.(c)Accumulatedothercomprehensiveincomerelatedtodiscontinuedoperationsincludedin"Accumulatedothercomprehensiveloss"onAmeren'sDecember31,2012,consolidatedbalancesheet.ThisbalancerelatedtoNewAERassetsandliabilitiesthatwererealizedorremovedfromAmeren'sconsolidatedbalancesheeteitherbeforeorattheDecember2,2013closingoftheNewAERdivestiture.(d)The20%ownershipinterestofEEInotownedbyAmerenwasincludedin"Noncontrollinginterests"onAmeren'sDecember31,2012,consolidatedbalancesheet.ThisnoncontrollinginterestwasremovedfromAmeren'sconsolidatedbalancesheetattheDecember2,2013 closingoftheNewAERdivestiture.AmerenhascontinuingtransactionswithNewAER.AmerenIllinoishaspowersupplyagreementswithMarketingCompany,whicharearesultofthepower procurementprocessinIllinoisadministeredbytheIPA,as requiredbytheIllinoisPublicUtilitiesAct.AmerenIllinois continuestopurchasepowerandtopurchasetrade receivablesasrequiredbyIllinoislaw.AmerenIllinoisand ATXIcontinuetoselltransmissionservicestoMarketing Company.Also,thetransactionagreementrequiresAmeren (parent)tomaintaincertainguaranteesdiscussedbelow.
Immediatelypriortothetransactionagreementclosing,the moneypoolborrowingsthroughwhichAmerenprovided cashcollateraltoMarketingCompanywereconvertedtoa notepayabletoAmeren,whichispayable,withinterest,24 monthsafterclosingorsoonerascashcollateral requirementsarereduced.Also,within120daysafter closing,aworkingcapitaladjustmentwillbefinalized, whichmayresultinacashpaymentfromAmerentoNew AERorfromNewAERtoAmeren.Amerenhasdetermined thatthecontinuingcashflowsgeneratedbythese arrangementsarenotsignificantand,accordingly,arenot deemedtobedirectcashflowsofthedivestedbusiness.
Additionally,thesearrangementsdonotprovideAmeren withtheabilitytosignificantlyinfluencetheoperatingresultsofNewAER.Amerenwillnothavesignificant continuinginvolvementwithormaterialcashflowsfromthe Elgin,GibsonCity,orGrandTowerenergycentersafter theirsale.AmerenGuaranteesUponthedivestitureofNewAER,thetransactionagreementbetweenAmerenandIPHrequiresAmeren(parent)tomaintainitsfinancialobligationswithrespectto allcreditsupportprovidedtoNewAERasoftheclosing dateofsuchdivestiture.Amerenmustalsoprovidesuch additionalcreditsupportasrequiredbycontractsentered intopriortotheclosingdate,ineachcaseforupto24 monthsaftertheclosing.IPHshallindemnifyAmerenfor anypaymentsAmerenmakespursuanttothesecredit supportobligationsifthecounterpartydoesnotreturnthe postedcollateraltoAmeren.IPH'sindemnification obligationissecuredbycertainAERGandGencoassets.In addition,Dynegyhasprovidedalimitedguaranteeof
$25milliontoAmeren(parent)pursuanttowhichDynegy will,amongotherthings,guaranteeIPH'sindemnification obligationsforaperiodofupto24monthsafterthe
closing.152 AtDecember31,2013,Amerenhadatotalof$190millioninguaranteesoutstanding,whichincluded:
$176millionrelatedtoguaranteessupportingMarketingCompanyforphysicallyandfinancially settledpowertransactionswithitscounterpartiesthat wereinplaceattheDecember2,2013closingofthe divestiture,aswellasforMarketingCompany'sclearing brokerandotherserviceagreements.IfMarketing Companydidnotfulfillitsobligationstothese counterpartieswhohadactiveopenpositionsasof December31,2013,Amerenwouldhavebeenrequired underitsguaranteestoprovide$6milliontothe
counterparties.
$14millionrelatedtorequirementsforleasing agreementsandpotentialenvironmentalobligations.Additionally,atDecember31,2013,Amerenhadissuedlettersofcredittotaling$11millionascreditsupport onbehalfofNewAER.Amerenhasnotrecordedareserveforthesecontingentobligationsbecauseitdoesnotbelievea paymentforanyoftheseguaranteesisprobableasof December31,2013.NOTE17-SEGMENTINFORMATIONAmerenhastworeportablesegments:AmerenMissouriandAmerenIllinois.TheAmerenMissourisegmentforbothAmerenandAmerenMissouriincludesall theoperationsofAmerenMissouri'sbusinessasdescribed inNote1-SummaryofSignificantAccountingPolicies.
TheAmerenIllinoissegmentforbothAmerenandAmeren IllinoisconsistsofalloftheoperationsofAmerenIllinoisas describedinNote1-SummaryofSignificantAccounting Policies.ThecategorycalledOtherprimarilyincludes Amerenparentcompanyactivities,AmerenServices,and ATXI.TheOthercategoryalsoincludescertaincorporate activitiespreviouslyincludedintheMerchantGeneration segment.SeeNote16-DivestitureTransactionsand DiscontinuedOperationsforadditionalinformation.ThefollowingtablepresentsinformationaboutthereportedrevenuesandspecifieditemsreflectedinAmeren'snetincomeattributabletoAmerenCorporationfromcontinuingoperationsfortheyearsendedDecember31,2013,2012,and 2011,andtotalassetsincontinuingoperationsasofDecember31,2013,2012,and2011.
Ameren Ameren Missouri AmerenIllinoisOther IntersegmentEliminationsConsolidated 2013Externalrevenues
.............................................$3,516$2,307$15$-$5,838Intersegmentrevenues
.........................................2542(31)-Depreciationandamortization
....................................4542439-706Interestanddividendincome
....................................2721-30Interestcharges
...............................................21014345-398Incometaxes(benefit)
..........................................242110(41)-311Netincome(loss)attributabletoAmerenCorporationfromcontinuing operations
.................................................395160(43)-512Capitalexpenditures
...........................................64870130 (a)-1,379Totalassets
..................................................12,9047,454752(233)20,877 (b)2012 Externalrevenues.............................................$3,252$2,524$5$-$5,781Intersegmentrevenues.........................................2013 (24)-Depreciationandamortization....................................44022112-673Interestanddividendincome....................................32---32Interestcharges...............................................22312940-392Incometaxes(benefit)..........................................25294(39)-307Netincome(loss)attributabletoAmerenCorporationfromcontinuing operations.................................................416141(41)-516Capitalexpenditures...........................................59544226 (a)-1,063Totalassets
..................................................13,0437,2821,228(934)20,619 (b)2011 Externalrevenues.............................................$3,360$2,784$4$-$6,148Intersegmentrevenues.........................................2333 (29)-Depreciationandamortization....................................40821520-643Interestanddividendincome....................................301--31Interestcharges...............................................20913642-387Incometaxes(benefit)..........................................161127(34)-254Netincome(loss)attributabletoAmerenCorporationfromcontinuing operations.................................................287193(49)-431Capitalexpenditures...........................................550351 (20)(a)-881Totalassets
..................................................12,7577,2131,211(1,179)20,002 (b).(a)Includestheeliminationofintercompanytransfers.(b)Excludestotalassetsfromdiscontinuedoperationsof$165million,$1,611million,and$3,721millionasofDecember31,2013,2012,and2011,respectively.
153 SELECTEDQUARTERLYINFORMATION(Unaudited)(Inmillions,exceptpershareamounts)
Ameren 2013 2012Quarterended (a)March31June30September30December31March31June30September30December31Operatingrevenues
.....................$1,475$1,403$1,638$1,322$1,412$1,402$1,709$1,258Operatingincome
.......................185261567171159347570112Netincome(loss)(b).....................(143)9630438(403)210374(1,155)NetincomeattributabletoAmerenCorporation-continuingoperations
......$54$105$305$48$38$164$302$12Netincome(loss)attributabletoAmerenCorporation-discontinuedoperations (b)...(199)(10)(3)(11)(441)4772(1,168)Netincome(loss)attributabletoAmeren Corporation
.........................$(145)$95$302$37$(403)$211$374$(1,156)Earningspercommonshare-basic-continuingoperations
.................$0.22$0.44$1.26$0.19$0.16$0.67$1.25$0.05Earnings(loss)percommonshare-basic-discontinuedoperations
................(0.82)(0.05)(0.01)(0.04)(1.82)0.200.29(4.81)Earnings(loss)percommonshare-basic...$(0.60)$0.39$1.25$0.15$(1.66)$0.87$1.54$(4.76)Earningspercommonshare-diluted-continuingoperations
.................$0.22$0.44$1.25$0.19$0.16$0.67$1.25$0.05Earnings(loss)percommonshare-diluted-discontinuedoperations
................(0.82)(0.05)(0.01)(0.04)(1.82)0.200.29(4.81)Earnings(loss)percommonshare-diluted.............................$(0.60)$0.39$1.24$0.15$(1.66)$0.87$1.54$(4.76)(a)Thesumofquarterlyamounts,includingpershareamounts,maynotequalamountsreportedforyear-to-dateperiods.Thisisduetotheeffectsofroundingandtochangesinthenumberofweighted-averagesharesoutstandingeachperiod.(b)Includespretaxassetimpairmentchargeof$2.6billionrecordedindiscontinuedoperationsduringtheyearendedDecember31,2012.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8,foradditionalinformation.AmerenMissouriQuarterended Operating revenues Operating income Net income (loss)Netincome(loss)availableto common stockholderMarch31,2013
.............................$796$111$41$40March31,2012.............................691782221June30,2013
..............................8891798584June30,2012..............................844269144143September30,2013
..........................1,093417239238September30,2012
..........................1,064429237236December31,2013
..........................763963333December31,2012..........................673691616AmerenIllinois Quarterended Operating revenues Operating income Net incomeNetincomeavailableto common stockholderMarch31,2013
..................................$684$85$32$31March31,2012..................................724892827June30,2013
...................................516873231June30,2012...................................564863332September30,2013
..............................5471587777September30,2012..............................6481517171December31,2013
...............................564852221December31,2012...............................589511211ITEM9.CHANGESINANDDISAGREEMENTSWITHACCOUNTANTSONACCOUNTINGANDFINANCIALDISCLOSURE.
None.154 ITEM9A.CONTROLSANDPROCEDURES.EachoftheAmerenCompanieswasrequiredtocomplywithSection404oftheSarbanes-OxleyActof2002andrelatedSECregulationsastomanagement'sassessmentofinternalcontroloverfinancialreportingforthe2013fiscalyear.(a)EvaluationofDisclosureControlsandProceduresAsofDecember31,2013,evaluationswereperformedunderthesupervisionandwiththeparticipationofmanagement,includingtheprincipalexecutiveofficerandprincipalfinancialofficerofeachoftheAmerenCompanies,oftheeffectivenessofthedesignandoperationofsuchregistrant'sdisclosurecontrolsandprocedures(asdefinedinRules13a-15(e)and15d-15(e) oftheExchangeAct).Basedonthoseevaluations,asofDecember31,2013,theprincipalexecutiveofficerandprincipal financialofficerofeachoftheAmerenCompaniesconcludedthatsuchdisclosurecontrolsandproceduresareeffectiveto provideassurancethatinformationrequiredtobedisclosedinsuchregistrant'sreportsfiledorsubmittedundertheExchangeActisrecorded,processed,summarized,andreportedwithinthetimeperiodsspecifiedintheSEC'srulesandformsandsuch informationisaccumulatedandcommunicatedtoitsmanagement,includingitsprincipalexecutiveandprincipalfinancial officers,toallowtimelydecisionsregardingrequireddisclosure.(b)Management'sReportonInternalControloverFinancialReportingManagementisresponsibleforestablishingandmaintainingadequateinternalcontroloverfinancialreporting,assuchtermisdefinedinExchangeActRules13a-15(f)and15d-15(f).Underthesupervisionofandwiththeparticipationofmanagement,includingtheprincipalexecutiveofficerandprincipalfinancialofficer,anevaluationwasconductedofthe effectivenessofeachoftheAmerenCompanies'internalcontroloverfinancialreportingbasedontheframeworkin InternalControl-IntegratedFramework(1992)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO1992).Aftermakingthatevaluation
,managementconcludedthateachoftheAmerenCompanies'internalcontroloverfinancialreportingwaseffectiveasofDecember31,2013.TheeffectivenessofAmeren'sinternalcontroloverfinancial reportingasofDecember31,2013,hasbeenauditedbyPricewaterhouseCoopersLLP,anindependentregisteredpublic accountingfirm,asstatedinitsreporthereinunderPartII,Item8.Thisannualreportdoesnotincludeanattestationreportof AmerenMissouri'sorAmerenIllinois'(theSubsidiaryRegistrants)independentregisteredpublicaccountingfirmregarding internalcontroloverfinancialreporting.Management'sreportforeachoftheSubsidiaryRegistrantsisnotsubjectto attestationbyanindependentregisteredpublicaccountingfirm.Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenessintofutureperiodsaresubjecttotheriskthatinternalcontrolsmightbecome inadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmight
deteriorate.(c)ChangeinInternalControlTherehasbeennochangeintheAmerenCompanies'internalcontroloverfinancialreportingduringtheirmostrecentfiscalquarterthathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theirinternalcontroloverfinancial
reporting.ITEM9B.OTHERINFORMATION.TheAmerenCompanieshavenoinformationreportableunderthisitemthatwasrequiredtobedisclosedinareportonSECForm8-Kduringthefourthquarterof2013thathasnotpreviouslybeenreportedonanSECForm8-K.PARTIIIITEM10.DIRECTORS,EXECUTIVEOFFICERS,ANDCORPORATEGOVERNANCE.InformationrequiredbyItems401,405,406and407(c)(3),(d)(4)and(d)(5)ofSECRegulationS-KforAmerenwillbeincludedinitsdefinitiveproxystatementfor its2014annualmeetingofshareholdersfiledpursuantto SECRegulation14A;itisincorporatedhereinbyreference.
InformationrequiredbytheseSECRegulationS-Kitemsfor AmerenMissouriandAmerenIllinoiswillbeincludedin eachcompany'sdefinitiveinformationstatementforits 2014annualmeetingofshareholdersfiledpursuanttoSEC Regulation14C;itisincorporatedhereinbyreference.
Specifically,referenceismadetothefollowingsectionsofAmeren'sdefinitiveproxystatementandeachofAmeren Missouri'sandAmerenIllinois'definitiveinformation statement:"InformationConcerningNomineestotheBoard ofDirectors,""Section16(a)BeneficialOwnership ReportingCompliance,""CorporateGovernance"and "BoardStructure."InformationconcerningexecutiveofficersoftheAmerenCompaniesrequiredbyItem401ofSECRegulation S-Kisreportedunderaseparatecaptionentitled"Executive OfficersoftheRegistrants"inPartIofthisreport.
155 AmerenMissouriandAmerenIllinoisdonothaveseparatelydesignatedstandingauditcommittees,butinsteaduseAmeren'sauditandriskcommitteetoperform suchcommitteefunctionsfortheirboardsofdirectors.
ThesecompanieshavenosecuritieslistedontheNYSEand thereforearenotsubjecttotheNYSElistingstandards.
WalterJ.GalvinservesaschairmanofAmeren'sauditand riskcommittee,andCatherineS.Brune,EllenM.
FitzsimmonsandStephenR.Wilsonserveasmembers.The boardofdirectorsofAmerenhasdeterminedthatWalterJ.
Galvinqualifiesasanauditcommitteefinancialexpertand thatheis"independent"asthattermisusedinSEC Regulation14A.Also,onthesamebasisasreportedabove,theboardsofdirectorsofAmerenMissouriandAmerenIllinoisusethe nominatingandcorporategovernancecommitteeof Ameren'sboardofdirectorstoperformsuchcommittee functions.Thiscommitteeisresponsibleforthenomination ofdirectorsandcorporategovernancepractices.Ameren's nominatingandcorporategovernancecommitteewill considerdirectornominationsfromshareholdersin accordancewithitsPolicyRegardingNominationsof Directors,whichcanbefoundonAmeren'swebsite:
www.ameren.com.Toencourageethicalconductinitsfinancialmanagementandreporting,AmerenhasadoptedaCodeof Ethicsthatappliestotheprincipalexecutiveofficer,the president,theprincipalfinancialofficer,theprincipal accountingofficer,thecontroller,andthetreasurerofeach oftheAmerenCompanies.Amerenhasalsoadoptedacode ofbusinessconductthatappliestothedirectors,officers, andemployeesoftheAmerenCompanies.Itisreferredto astheCorporateCompliancePolicy.TheAmeren CompaniesmakeavailablefreeofchargethroughAmeren's website(www.ameren.com)theCodeofEthicsandthe CorporateCompliancePolicy.AnyamendmenttotheCode ofEthicsortheCorporateCompliancePolicyandany waiverfromaprovisionoftheCodeofEthicsorthe CorporateCompliancePolicyasitrelatestotheprincipal executiveofficer,thepresident,theprincipalfinancial officer,theprincipalaccountingofficer,thecontrollerand thetreasurerofeachoftheAmerenCompanieswillbe postedonAmeren'swebsitewithinfourbusinessdays followingthedateoftheamendmentorwaiver.ITEM11.EXECUTIVECOMPENSATION.InformationrequiredbyItems402and407(e)(4)and(e)(5)ofSECRegulationS-KforAmerenwillbeincludedinitsdefinitiveproxystatementforits2014annualmeetingofshareholdersfiledpursuanttoSECRegulation14A;itisincorporated hereinbyreference.InformationrequiredbytheseSECRegulationS-KitemsforAmerenMissouriandAmerenIllinoiswillbe includedineachcompany'sdefinitiveinformationstatementforits2014annualmeetingofshareholdersfiledpursuanttoSEC Regulation14C;itisincorporatedhereinbyreference.Specifically,referenceismadetothefollowingsectionsofAmeren's definitiveproxystatementandeachofAmerenMissouri'sandAmerenIllinois'definitiveinformationstatement:"Executive Compensation"and"HumanResourcesCommitteeInterlocksandInsiderParticipation."ITEM12.SECURITYOWNERSHIPOFCERTAINBENEFICIALOWNERSANDMANAGEMENTANDRELATEDSTOCKHOLDER MATTERS.EquityCompensationPlanInformationThefollowingtablepresentsinformationasofDecember31,2013,withrespecttothesharesofAmeren'scommonstockthatmaybeissuedunderitsexistingequitycompensationplans.PlanCategoryColumnANumberofSecuritiesToBeIssuedUponExerciseofOutstandingOptions,WarrantsandRightsColumnB Weighted-AverageExercisePriceofOutstandingOptions,WarrantsandRightsColumnCNumberofSecuritiesRemainingAvailableforFutureIssuanceEquityCompensationPlans(excludingsecuritiesreflectedinColumnA)Equitycompensationplansapprovedbysecurityholders (a).....................2,509,073(b)627,648Equitycompensationplansnotapprovedbysecurityholders
......................
---Total.................................
2,509,073 (b)627,648(a)ConsistsoftheAmerenCorporation2006OmnibusIncentiveCompensationPlan,whichwasapprovedbyshareholdersinMay2006andexpiresonMay2,2016.Pursuanttograntsofperformanceshareunits(PSUs)underthe2006OmnibusIncentiveCompensationPlan,801,853ofthesecuritiesrepresentPSUsthatvestedasofDecember31,2013(includingaccruedandreinvesteddividends),and1,653,280ofthe securitiesrepresenttargetPSUsgrantedbutnotvested(includingaccruedandreinvesteddividends)asofDecember31,2013.Theactual numberofsharesissuedinrespectofthePSUswillvaryfrom0%to200%ofthetargetleveldependingupontheachievementoftotal shareholderreturnobjectivesestablishedforsuchawards.ForadditionalinformationaboutthePSUs,includingpayoutcalculations,see "CompensationDiscussionandAnalysis-Long-TermIncentives:PerformanceShareUnitProgram(PSUP)"inAmeren'sdefinitiveproxy 156 statementforits2014annualmeetingofshareholdersfiledpursuanttoSECRegulation14A.53,940ofthesecuritiesrepresentsharesthatmaybeissuedasofDecember31,2013,tosatisfyobligationsundertheAmerenCorporationDeferredCompensationPlanformembersofthe boardofdirectors.(b)EarnedPSUsanddeferredcompensationstockunitsarepaidinsharesofAmerencommonstockonaone-for-onebasis.Accordingly,thePSUsanddeferredcompensationstockunitshavebeenexcludedforpurposesofcalculatingtheweighted-averageexerciseprice.AmerenMissouriandAmerenIllinoisdonothaveseparateequitycompensationplans.SecurityOwnershipofCertainBeneficialOwnersandManagementTheinformationrequiredbyItem403ofSECRegulationS-KforAmerenwillbeincludedinitsdefinitiveproxystatementforits2014annualmeetingofshareholdersfiledpursuanttoSECRegulation14A;itisincorporatedhereinbyreference.InformationrequiredbythisSECRegulationS-KitemforAmerenMissouriandAmerenIllinoiswillbeincludedineach company'sdefinitiveinformationstatementforits2014annualmeetingofshareholdersfiledpursuanttoSECRegulation14C; itisincorporatedhereinbyreference.Specifically,referenceismadetothefollowingsectionofAmeren'sdefinitiveproxy statementandeachofAmerenMissouri'sandAmerenIllinois'definitiveinformationstatement:"SecurityOwnership."ITEM13.CERTAINRELATIONSHIPSANDRELATEDTRANSACTIONSANDDIRECTORINDEPENDENCE.InformationrequiredbyItem404andItem407(a)ofSECRegulationS-KforAmerenwillbeincludedinitsdefinitiveproxystatementforits2014annualmeetingofshareholdersfiledpursuanttoSECRegulation14A;itisincorporatedhereinbyreference.InformationrequiredbytheseSECRegulationS-KitemsforAmerenMissouriandAmerenIllinoiswillbeincludedin eachcompany'sdefinitiveinformationstatementforits2014annualmeetingofshareholdersfiledpursuanttoSECRegulation14C;itisincorporatedhereinbyreference.Specifically,referenceismadetothefollowingsectionsofAmeren'sdefinitive proxystatementandeachofAmerenMissouri'sandAmerenIllinois'definitiveinformationstatement:"PolicyandProceduresWithRespecttoRelatedPersonTransactions"and"DirectorIndependence."ITEM14.PRINCIPALACCOUNTINGFEESANDSERVICES.InformationrequiredbyItem9(e)ofSECSchedule14AfortheAmerenCompanieswillbeincludedinthedefinitiveproxystatementofAmerenandthedefinitiveinformationstatementsofAmerenMissouriandAmerenIllinoisfortheir2014annualmeetingsofstockholdersfiledpursuanttoSECRegulations14Aand14C,respectively;itisincorporatedhereinbyreference.Specifically,referenceismadetothefollowingsectionofAmeren'sdefinitiveproxystatementandeachofAmerenMissouri's andAmerenIllinois'definitiveinformationstatement:"IndependentRegisteredPublicAccountingFirm."
157 PARTIVITEM15.EXHIBITSANDFINANCIALSTATEMENTSCHEDULES.(a)(1)FinancialStatementsPageNo.AmerenReportofIndependentRegisteredPublicAccountingFirm.............................................................70ConsolidatedStatementofIncome(Loss)-YearsEndedDecember31,2013,2012,and2011................................72ConsolidatedStatementofComprehensiveIncome(Loss).............................................................73ConsolidatedBalanceSheet-December31,2013and2012...........................................................74ConsolidatedStatementofCashFlows-YearsEndedDecember31,2013,2012,and2011...................................75ConsolidatedStatementofStockholders'Equity-YearsEndedDecember31,2013,2012,and2011............................76AmerenMissouri ReportofIndependentRegisteredPublicAccountingFirm.............................................................71StatementofIncomeandComprehensiveIncome-YearsEndedDecember31,2013,2012,and2011..........................77BalanceSheet-December31,2013and2012......................................................................78StatementofCashFlows-YearsEndedDecember31,2013,2012,and2011.............................................79StatementofStockholders'Equity-YearsEndedDecember31,2013,2012,and2011......................................80AmerenIllinois ReportofIndependentRegisteredPublicAccountingFirm.............................................................71StatementofIncomeandComprehensiveIncome-YearsEndedDecember31,2013,2012,and2011..........................81BalanceSheet-December31,2013and2012......................................................................82StatementofCashFlows-YearsEndedDecember31,2013,2012,and2011.............................................83StatementofStockholders'Equity-YearsEndedDecember31,2013,2012,and2011......................................84(a)(2)FinancialStatementSchedules ScheduleI-CondensedFinancialInformationofParent-Ameren:CondensedStatementofIncome(Loss)andComprehensiveIncome(Loss)-YearsEndedDecember31,2013,2012,and2011...159 CondensedBalanceSheet-December31,2013and2012........................................................159CondensedStatementofCashFlows-YearsEndedDecember31,2013,2012,and2011................................160ScheduleII-ValuationandQualifyingAccountsfortheyearsendedDecember31,2013,2012,and2011.......................161ScheduleIandIIshouldbereadinconjunctionwiththeaforementionedfinancialstatements.Certainscheduleshavebeenomittedbecausetheyarenotapplicableorbecausetherequireddataisshownintheaforementionedfinancial statements.(a)(3)Exhibits.ReferenceismadetotheExhibitIndexcommencingonpage165.(b)ExhibitsarelistedintheExhibitIndexcommencingonpage165.
158 SCHEDULEI-CONDENSEDFINANCIALINFORMATIONOFPARENTAMERENCORPORATIONCONDENSEDSTATEMENTOFINCOME(LOSS)ANDCOMPREHENSIVEINCOME(LOSS)FortheYearsEndedDecember31,2013,2012and2011(Inmillions)201320122011Operatingrevenues
................................................................
$-$-$-Operatingexpenses
................................................................
261713Operatingloss
....................................................................
(26)(17)(13)Equityinearningsofsubsidiaries
.....................................................
546546464Interestincomefromaffiliates
........................................................
3 35Miscellaneousexpense
.............................................................
5 44Interestcharges
...................................................................
423941Incometax(benefit)
................................................................
(36)(27)(20)NetIncomeAttributabletoAmerenCorporation-ContinuingOperations
.......................
512516431NetIncome(Loss)AttributabletoAmerenCorporation-DiscontinuedOperations
...............
(223)(1,490)88NetIncome(Loss)AttributabletoAmerenCorporation
.....................................$289$(974)$519NetIncomeAttributabletoAmerenCorporation-ContinuingOperations
.......................$512$516$431OtherComprehensiveIncome(Loss),NetofTaxes:Pensionandotherpostretirementbenefitplanactivity,netofincometaxes(benefit)of$16,$(6),and$(14),respectively
.......................................................
30(8)(19)ComprehensiveIncomefromContinuingOperationsAttributabletoAmerenCorporation
..........
542508412NetIncome(Loss)AttributabletoAmerenCorporation-DiscontinuedOperations
...............
(223)(1,490)88OtherComprehensiveIncome(Loss)fromDiscontinuedOperations,NetofIncomeTaxes
.........(19)50(14)ComprehensiveIncome(Loss)fromDiscontinuedOperationsAttributabletoAmerenCorporation...
(242)(1,440)74ComprehensiveIncome(Loss)AttributabletoAmerenCorporation
...........................$300$(932)$486SCHEDULEI-CONDENSEDFINANCIALINFORMATIONOFPARENTAMERENCORPORATIONCONDENSEDBALANCESHEET(Inmillions)December31,2013December31,2012 Assets:Cashandcashequivalents
..........................................................$11$23Advancestomoneypool
............................................................
334 316Accountsandnotesreceivable-affiliates
...............................................
27 31Miscellaneousaccountsandnotesreceivable
............................................
125-Othercurrentassets
...............................................................
42 49Totalcurrentassets
..............................................................
539 419Investmentsinsubsidiaries-continuingoperations
......................................
6,336 6,315Investmentsinsubsidiaries-discontinuedoperations
.....................................
(5)(353)Notereceivable-affiliates
..........................................................
51 462Accumulateddeferredincometaxes,net
...............................................
623 210Othernon-currentassets
...........................................................
141 110Totalassets
........................................................................$7,685$7,163LiabilitiesandStockholders'Equity:Currentmaturitiesoflong-termdebt
...................................................$425$-Short-termdebt
..................................................................
368-Accountspayable
.................................................................
119 3Accountspayable-affiliates
.........................................................
4 10Othercurrentliabilities
.............................................................
20 30Totalcurrentliabilities
............................................................
936 43Long-termdebt
...................................................................
-424Otherdeferredcreditsandliabilities
...................................................
205 80Totalliabilities
..................................................................
1,141 547CommitmentsandContingenciesStockholders'Equity:Commonstock,$.01parvalue,400.0sharesauthorized-sharesoutstandingof242.6
...........
2 2Otherpaid-incapital,principallypremiumoncommonstock
................................
5,632 5,616Retainedearnings
.................................................................
907 1,006 Accumulated othercomprehensiveincome(loss)
........................................
3 (8)Totalstockholders'equity
.........................................................
6,544 6,616Totalliabilitiesandstockholders'equity
..................................................$7,685$7,163 159 SCHEDULEI-CONDENSEDFINANCIALINFORMATIONOFPARENTAMERENCORPORATIONCONDENSEDSTATEMENTOFCASHFLOWSFortheYearsEndedDecember31,2013,2012and2011(Inmillions)201320122011Netcashflowsprovidedbyoperatingactivities
...........................................$453$532$804Cashflowsfrominvestingactivities:Moneypooladvances,net
.........................................................
(371)24(276)Notesreceivable-affiliates,net
.....................................................
(23)(20)358Investmentsinsubsidiaries
........................................................
(50)(2)(94)Distributionsfromsubsidiaries
.....................................................
1213 Other.........................................................................
(2)(5)(5)Netcashflowsprovidedby(usedin)investingactivities
....................................
(445)18(14)Cashflowsfromfinancingactivities:Dividendsoncommonstock
.......................................................
(388)(382)(375)Short-termdebtandcreditfacilityborrowings,net
......................................
368(148)(481)Issuancesofcommonstock
.......................................................
--65Netcashflowsusedinfinancingactivities
...............................................
(20)(530)(791)Netchangeincashandcashequivalents
................................................$(12)$20$(1)Cashandcashequivalentsatbeginningofyear
...........................................
23 34Cashandcashequivalentsattheendofyear
.............................................$11$23$3Cashdividendsreceivedfromconsolidatedsubsidiaries
....................................$570$610$730Noncashinvestingactivity-divestiture
.................................................$494$-$-Noncashfinancingactivity-dividendsoncommonstock
...................................
-(7)-AMERENCORPORATION(parentcompanyonly)NOTESTOCONDENSEDFINANCIALSTATEMENTSDecember31,2013NOTE1-BASISOFPRESENTATIONAmerenCorporation(parentcompanyonly)isapublicutilityholdingcompanythatconductssubstantiallyallofitsbusinessoperationsthroughitssubsidiaries.Inaccordancewithauthoritativeaccountingguidance,AmerenCorporation(parentcompanyonly)hasaccountedforwhollyownedsubsidiariesusingtheequitymethod.Thesefinancialstatementsarepresentedonacondensedbasis.AdditionaldisclosuresrelatingtotheparentcompanyfinancialstatementsareincludedwithinthecombinednotesunderPartII,Item8,ofthisreport.NOTE2-SHORT-TERMDEBTANDLIQUIDITYSeeNote4-Short-termDebtandLiquidityunderPartII,Item8,ofthisreportforadescriptionanddetailsofshort-termdebtandliquidityneedsofAmerenCorporation(parentcompanyonly).
NOTE3-LONG-TERMOBLIGATIONSSeeNote5-Long-termDebtandEquityFinancingsunderPartII,Item8,ofthisreportforadescriptionanddetailsoflong-termobligationsofAmerenCorporation(parentcompanyonly).
NOTE4-COMMITMENTSANDCONTINGENCIESSeeNote15-CommitmentsandContingenciesandNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8,ofthisreportforadescriptionofallmaterialcontingenciesandguaranteesoutstandingofAmerenCorporation(parentcompanyonly).NOTE5-NEWAERDIVESTITUREANDDISCONTINUEDOPERATIONSInDecember2012,Amerendeterminedthatitintendedto,anditwasprobablethatitwould,exititsMerchantGenerationbusinessbeforetheendofthepreviouslyestimatedusefullivesofthatbusiness'slong-livedassets.Asaresultofthe2012determination,AmerenCorporation(parentcompanyonly)recordedapretaximpairmentchargeof$1.88billiontoreduceits investmentincertainoftheMerchantGenerationsegment'scoalandnaturalgas-firedenergycenterstotheirestimatedfair 160 values.OnDecember2,2013,Amerencompletedadivestiturethatincludedasignificantportionofthatbusiness.Asaresultofthedivestiturein2013,AmerenCorporation(parentcompanyonly)recordedapretaxlossondisposalof$201million.
Thesechargeswereincludedwithin"NetIncome(Loss)AttributabletoAmerenCorporation-DiscontinuedOperations"inthe AmerenCorporation(parentcompanyonly)CondensedStatementofIncome(Loss)andComprehensiveIncome(Loss)for theyearsendedDecember31,2013,and2012.The"Miscellaneousaccountsandnotesreceivable"ontheDecember31,2013AmerenCorporation(parentcompanyonly)CondensedBalanceSheetincludedareceivablefromDynegyrelatedtothenon-state-regulatedsubsidiarymoneypool borrowingbalanceasofthedivestituredateofcertainNewAERsubsidiaries.Additionally,apayabletoDynegyofthe estimatedworkingcapitaladjustmentrequiredunderthetermsoftheagreementwithIPHisreflectedin"Accountspayable" ontheDecember31,2013,AmerenCorporation(parentcompanyonly)CondensedBalanceSheet.AssumingIPHandAmeren reachanagreement,boththereceivableandthepayablewillbefinalizedwithin120daysaftertheclosingofthedivestiture.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8,ofthisreportforadditionalinformationontheimpairmentchargesrecognizedin2013and2012aswellasthedivestiture.SCHEDULEII-VALUATIONANDQUALIFYINGACCOUNTSFORTHEYEARSENDEDDECEMBER31,2013,2012AND2011(inmillions)ColumnAColumnBColumnCColumnDColumnE DescriptionBalanceat BeginningofPeriod (1)ChargedtoCostsandExpenses (2)ChargedtoOther Accounts (a)Deductions (b)BalanceatEndofPeriod Ameren:Deductedfromassets-allowancefordoubtfulaccounts:
2013.......................................$17$35$4$38$18 2012.......................................203023517 2011.......................................2341-4420Deferredtaxvaluationallowance:
2013.......................................$2$5$-$-$7 2012.......................................11--2 2011.......................................1---1AmerenMissouri:Deductedfromassets-allowancefordoubtfulaccounts:
2013.......................................$5$16$-$16$5 2012.......................................711-135 2011.......................................817-187Deferredtaxvaluationallowance:
2013.......................................$1$-$-$-$1 2012.......................................1---1 2011.......................................1---1AmerenIllinois:Deductedfromassets-allowancefordoubtfulaccounts:
2013.......................................$12$19$4$22$13 2012.......................................131922212 2011.......................................1324-2413Deferredtaxvaluationallowance:
2013.......................................$1$-$-$-$1 2012.......................................-1--1 2011.......................................-----(a)UncollectibleaccountreserveassociatedwithreceivablespurchasedbyAmerenIllinoisfromalternativeretailelectricsuppliers,asrequiredbytheIllinoisPublicUtilitiesAct.(b)Uncollectibleaccountschargedoff,lessrecoveries.
161 SIGNATURESPursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,eachregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized.Thesignaturesforeachundersignedcompanyshallbedeemedtorelateonlytomattershavingreferencetosuchcompanyoritssubsidiaries.AMERENCORPORATION (registrant)Date:March3,2014 By/s/ThomasR.VossThomasR.Voss ChairmanandChiefExecutiveOfficerPursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedateindicated./s/ThomasR.VossThomasR.VossChairmanandChiefExecutiveOfficer,andDirector (PrincipalExecutiveOfficer)March3,2014/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentand ChiefFinancialOfficer (PrincipalFinancialOfficer)March3,2014/s/BruceA.SteinkeBruceA.SteinkeSeniorVicePresident,Financeand ChiefAccountingOfficer (PrincipalAccountingOfficer)March3,2014
- WarnerL.BaxterDirectorMarch3,2014
- CatherineS.BruneDirectorMarch3,2014
- EllenM.FitzsimmonsDirectorMarch3,2014
- WalterJ.GalvinDirectorMarch3,2014
- RichardJ.HarshmanDirectorMarch3,2014
- GayleP.W.JacksonDirectorMarch3,2014
- JamesC.JohnsonDirectorMarch3,2014
- StevenH.LipsteinDirectorMarch3,2014
- PatrickT.StokesDirectorMarch3,2014
- StephenR.WilsonDirectorMarch3,2014
- JackD.WoodardDirectorMarch3,2014*By/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.
Attorney-in-FactMarch3,2014 162 UNIONELECTRICCOMPANY (registrant)Date:March3,2014 By/s/WarnerL.BaxterWarnerL.BaxterChairman,PresidentandChiefExecutiveOfficerPursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedateindicated./s/WarnerL.BaxterWarnerL.BaxterChairman,PresidentandChiefExecutiveOfficer,andDirector (PrincipalExecutiveOfficer)March3,2014/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentand ChiefFinancialOfficer,andDirector (PrincipalFinancialOfficer)March3,2014/s/BruceA.SteinkeBruceA.SteinkeSeniorVicePresident,Financeand ChiefAccountingOfficer (PrincipalAccountingOfficer)March3,2014
- DanielF.ColeDirectorMarch3,2014
- MichaelL.MoehnDirectorMarch3,2014
- CharlesD.NaslundDirectorMarch3,2014
- GregoryL.NelsonDirectorMarch3,2014*By/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.
Attorney-in-FactMarch3,2014 163 AMERENILLINOISCOMPANY (registrant)Date:March3,2014 By/s/RichardJ.MarkRichardJ.MarkChairman,PresidentandChiefExecutiveOfficerPursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedateindicated./s/RichardJ.MarkRichardJ.MarkChairman,PresidentandChiefExecutiveOfficer,andDirector (PrincipalExecutiveOfficer)March3,2014/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancial Officer,andDirector(PrincipalFinancial
Officer)March3,2014/s/BruceA.SteinkeBruceA.SteinkeSeniorVicePresident,FinanceandChief AccountingOfficer(PrincipalAccounting
Officer)March3,2014
- DanielF.ColeDirectorMarch3,2014
- GregoryL.NelsonDirectorMarch3,2014*By/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.
Attorney-in-FactMarch3,2014 164 EXHIBITINDEXThedocumentslistedbelowarebeingfiledorhavepreviouslybeenfiledonbehalfoftheAmerenCompaniesandareincorporatedhereinbyreferencefromthedocumentsindicatedandmadeaparthereof.Exhibitsnotidentifiedaspreviouslyfiledarefiledherewith:ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:PlanofAcquisition,Reorganization,Arrangement,LiquidationorSuccession 2.1AmerenIllinoisAgreementandPlanofMerger,datedasofApril13,2010,amongCIPS,CILCOandIPAnnexAtoPartIoftheRegistration StatementonFormS-4, FileNo.333-166095).
2.2 AmerenTransactionAgreement,datedasof March14,2013,betweenAmeren CorporationandIllinoisPowerHoldings, LLCMarch19,2013Form8-K,Exhibit2.1, FileNo.1-14756 2.3 AmerenLetterAgreement,datedDecember2,2013, betweenAmerenCorporationandIllinois PowerHoldings,LLC,amendingthe TransactionAgreement,datedasof March14,2013December4,2013Form8-K,Exhibit2.2, FileNo.1-14756ArticlesofIncorporation/By-Laws 3.1(i)AmerenRestatedArticlesofIncorporationof
AmerenAnnexFtoPartIoftheRegistration StatementonFormS-4,FileNo.33-64165 3.2(i)AmerenCertificateofAmendmenttoAmeren's RestatedArticlesofIncorporationfiled December14,19981998Form10-K,Exhibit3(i),
FileNo.1-14756 3.3(i)AmerenCertificateofAmendmenttoAmeren's RestatedArticlesofIncorporationfiled April21,2011April21,2011Form8-K,Exhibit3(i),
FileNo.1-14756 3.4(i)AmerenCertificateofAmendmenttoAmeren's RestatedArticlesofIncorporationfiled December18,2012December18,2012Form8-K, Exhibit3.1(i),FileNo.1-14756 3.5(i)AmerenMissouriRestatedArticlesofIncorporationofAmerenMissouri1993Form10-K,Exhibit3(i),
FileNo.1-2967 3.6(i)AmerenIllinoisRestatedArticlesofIncorporationof AmerenIllinois2010Form10-K,Exhibit3.4(i),
FileNo.1-36723.7(ii)AmerenBy-LawsofAmeren,asamended December14,2012December18,2012Form8-K, Exhibit3.1(ii),FileNo.1-147563.8(ii)AmerenMissouriBy-LawsofAmerenMissouri,asamendedDecember10,2010December15,2010Form8-K, Exhibit3.1(ii),FileNo.1-29673.9(ii)AmerenIllinoisBylawsofAmerenIllinois,asamended December10,2010December15,2010Form8-K, Exhibit3.2(ii),FileNo.1-3672InstrumentsDefiningRightsofSecurityHolders,IncludingIndentures 4.1 AmerenIndenturedatedasofDecember1,2001 fromAmerentoTheBankofNewYork MellonTrustCompany,N.A.,assuccessor trustee,relatingtoseniordebtsecurities (AmerenIndenture)Exhibit4.5,FileNo.333-81774
4.2 AmerenFirstSupplementalIndenturetoAmeren
SeniorIndenturedatedasofMay19,2008June30,2008Form10-Q,Exhibit4.1, FileNo.1-14756
4.3 AmerenAmerenIndentureCompanyOrderdated
May15,2009,establishing8.875%Senior Notes,due2014(includingtheglobalnote)May15,2009Form8-K, Exhibits4.3and4.4,FileNo.1-14756 165 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.4 AmerenAmerenMissouriIndentureofMortgageandDeedofTrust datedJune15,1937(AmerenMissouri Mortgage),fromAmerenMissouritoThe BankofNewYorkMellon,assuccessor trustee,asamendedMay1,1941,and SecondSupplementalIndenturedated May1,1941ExhibitB-1,FileNo.2-4940
4.5 Ameren
AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofJuly1,1956August2,1956Form8-K,Exhibit2, FileNo.1-2967
4.6 Ameren
AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofApril1, 1971April1971Form8-K,Exhibit6, FileNo.1-2967
4.7 Ameren
AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofFebruary1, 1974February1974Form8-K,Exhibit3, FileNo.1-2967
4.8 Ameren
AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofJuly7,1980Exhibit4.6,FileNo.2-69821
4.9 Ameren
AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofOctober1, 1993,relativetoSeries20281993Form10-K,Exhibit4.8, FileNo.1-2967 4.10 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofFebruary1, 20002000Form10-K,Exhibit4.1, FileNo.1-2967 4.11 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedAugust15,2002August23,2002Form8-K,Exhibit4.3, FileNo.1-2967 4.12 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedMarch5,2003, relativetoSeriesBBMarch11,2003Form8-K,Exhibit4.4, FileNo.1-2967 4.13 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedApril1,2003, relativetoSeriesCCApril10,2003Form8-K,Exhibit4.4, FileNo.1-2967 4.14 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedJuly15,2003, relativetoSeriesDDAugust4,2003Form8-K,Exhibit4.4, FileNo.1-2967 4.15 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedOctober1,2003, relativetoSeriesEEOctober8,2003Form8-K,Exhibit4.4, FileNo.1-2967 4.16 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedFebruary1,2004, relativetoSeries2004A(1998A)March31,2004Form10-Q,Exhibit4.1, FileNo.1-2967 4.17 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedFebruary1,2004, relativetoSeries2004B(1998B)March31,2004Form10-Q,Exhibit4.2, FileNo.1-2967 4.18 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedFebruary1,2004, relativetoSeries2004C(1998C)March31,2004Form10-Q,Exhibit4.3, FileNo.1-2967 4.19 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedFebruary1,2004, relativetoSeries2004H(1992)March31,2004Form10-Q,Exhibit4.8, FileNo.1-2967 4.20 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedMay1,2004 relativetoSeriesFFMay18,2004Form8-K,Exhibit4.4, FileNo.1-2967 4.21 AmerenAmerenMissouri Supplemental IndenturetotheAmerenMissouriMortgagedatedSeptember1, 2004relativetoSeriesGGSeptember23,2004Form8-K, Exhibit4.4,FileNo.1-2967 166 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.22 AmerenAmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedJanuary1,2005 relativetoSeriesHHJanuary27,2005Form8-K,Exhibit4.4, FileNo.1-2967 4.23 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedJuly1,2005 relativetoSeriesIIJuly21,2005Form8-K,Exhibit4.4, FileNo.1-2967 4.24 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedDecember1, 2005relativetoSeriesJJDecember9,2005Form8-K,Exhibit4.4, FileNo.1-2967 4.25 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedJune1,2007 relativetoSeriesKKJune15,2007Form8-K,Exhibit4.5, FileNo.1-2967 4.26 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedApril1,2008 relativetoSeriesLLApril8,2008Form8-K,Exhibit4.7, FileNo.1-2967 4.27 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedJune1,2008 relativetoSeriesMMJune19,2008Form8-K,Exhibit4.5, FileNo.1-2967 4.28 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedMarch1,2009 relativetoSeriesNNMarch23,2009Form8-K,Exhibit4.5, FileNo.1-2967 4.29 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedMay15,2012Exhibit4.45,FileNo.333-182258 4.30 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedSeptember1, 2012relativetoSeriesOOSeptember11,2012Form8-K,Exhibit4.4, FileNo.1-2967 4.31 Ameren AmerenMissouriLoanAgreementdatedasofDecember1, 1992,betweentheMissouriEnvironmental AuthorityandAmerenMissouri,together withIndentureofTrustdatedasof December1,1992,betweentheMissouri EnvironmentalAuthorityandUMBBank, N.A.assuccessortrusteetoMercantile BankofSt.Louis,N.A.1992Form10-K,Exhibit4.38, FileNo.1-2967 4.32 Ameren AmerenMissouriFirstAmendmentdatedasofFebruary1, 2004,toLoanAgreementdatedasof December1,1992,betweentheMissouri EnvironmentalAuthorityandAmeren
MissouriMarch31,2004Form10-Q,Exhibit4.10, FileNo.1-2967 4.33 Ameren AmerenMissouriSeries1998ALoanAgreementdatedasof September1,1998,betweentheMissouri EnvironmentalAuthorityandAmeren
MissouriSeptember30,1998Form10-Q, Exhibit4.28,FileNo.1-2967 4.34 Ameren AmerenMissouriFirstAmendmentdatedasofFebruary1, 2004,toSeries1998ALoanAgreement datedasofSeptember1,1998,between theMissouriEnvironmentalAuthorityand AmerenMissouriMarch31,2004Form10-Q,Exhibit4.11, FileNo.1-2967 4.35 Ameren AmerenMissouriSeries1998BLoanAgreementdatedasof September1,1998,betweentheMissouri EnvironmentalAuthorityandAmeren
MissouriSeptember30,1998Form10-Q, Exhibit4.29,FileNo.1-2967 4.36 Ameren AmerenMissouriFirstAmendmentdatedasofFebruary1, 2004,toSeries1998BLoanAgreement datedasofSeptember1,1998,between theMissouriEnvironmentalAuthorityand AmerenMissouriMarch31,2004Form10-Q,Exhibit4.12, FileNo.1-2967 167 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.37 AmerenAmerenMissouriSeries1998CLoanAgreementdatedasof September1,1998,betweentheMissouri EnvironmentalAuthorityandAmeren
MissouriSeptember30,1998Form10-Q, Exhibit4.30,FileNo.1-2967 4.38 Ameren AmerenMissouriFirstAmendmentdatedasofFebruary1, 2004,toSeries1998CLoanAgreement datedasofSeptember1,1998,between theMissouriEnvironmentalAuthorityand AmerenMissouriMarch31,2004Form10-Q,Exhibit4.13, FileNo.1-2967 4.39 Ameren AmerenMissouriIndenturedatedasofAugust15,2002, fromAmerenMissouritoTheBankofNew YorkMellon,assuccessortrustee(relating toseniorsecureddebtsecurities)(Ameren MissouriIndenture)August23,2002Form8-K,Exhibit4.1, FileNo.1-2967 4.40 Ameren AmerenMissouriFirstSupplementalIndenturetotheAmeren MissouriIndenture,datedasofMay15, 2012Exhibit4.48,FileNo.333-182258 4.41 Ameren AmerenMissouriAmerenMissouriIndentureCompanyOrder datedMarch10,2003,establishingthe 5.50%SeniorSecuredNotesdue2034 (includingtheglobalnote)March11,2003Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.42 Ameren AmerenMissouriAmerenMissouriIndentureCompanyOrder datedApril9,2003,establishingthe4.75%
SeniorSecuredNotesdue2015(including theglobalnote)April10,2003Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.43 Ameren AmerenMissouriAmerenMissouriIndentureCompanyOrder datedJuly28,2003,establishingthe5.10%
SeniorSecuredNotesdue2018(including theglobalnote)August4,2003Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.44 Ameren AmerenMissouriAmerenMissouriIndentureCompanyOrder datedOctober7,2003,establishingthe 4.65%SeniorSecuredNotesdue2013 (includingtheglobalnote)October8,2003Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.45 Ameren AmerenMissouriAmerenMissouriIndentureCompanyOrder datedMay13,2004,establishingthe 5.50%SeniorSecuredNotesdue2014 (includingtheglobalnote)May18,2004Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.46 Ameren AmerenMissouriAmerenMissouriIndentureCompanyOrder datedSeptember1,2004,establishingthe 5.10%SeniorSecuredNotesdue2019 (includingtheglobalnote)September23,2004Form8-K,Exhibits4.2 and4.3,FileNo.1-2967 4.47 Ameren AmerenMissouriAmerenMissouriIndentureCompanyOrder datedJanuary27,2005,establishingthe 5.00%SeniorSecuredNotesdue2020 (includingtheglobalnote)January27,2005Form8-K,Exhibits4.2 and4.3,FileNo.1-2967 4.48 Ameren AmerenMissouriAmerenMissouriIndentureCompanyOrder datedJuly21,2005,establishingthe5.30%
SeniorSecuredNotesdue2037(including theglobalnote)July21,2005Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.49 Ameren AmerenMissouriAmerenMissouriIndentureCompanyOrder datedDecember8,2005,establishingthe 5.40%SeniorSecuredNotesdue2016 (includingtheglobalnote)December9,2005Form8-K,Exhibits4.2 and4.3,FileNo.1-2967 4.50 Ameren AmerenMissouriAmerenMissouriIndentureCompanyOrder datedJune15,2007,establishingthe 6.40%SeniorSecuredNotesdue2017 (includingtheglobalnote)June15,2007Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 168 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.51 AmerenAmerenMissouriAmerenMissouriIndentureCompanyOrder datedApril8,2008,establishingthe6.00%
SeniorSecuredNotesdue2018(including theglobalnote)April8,2008Form8-K,Exhibits4.3and 4.5,FileNo.1-2967 4.52 Ameren AmerenMissouriAmerenMissouriIndentureCompanyOrder datedJune19,2008,establishingthe 6.70%SeniorSecuredNotesdue2019 (includingtheglobalnote)June19,2008Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.53 Ameren AmerenMissouriAmerenMissouriIndentureCompanyOrder datedMarch20,2009,establishing8.45%
SeniorSecuredNotesdue2039(including theglobalnote)March23,2009Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.54 Ameren AmerenMissouriAmerenMissouriIndentureCompanyOrder datedSeptember11,2012,establishing 3.90%SeniorSecuredNotesdue2042 (includingtheglobalnote)September30,2012Form10-Q,Exhibit4.1 andSeptember11,2012Form8-K, Exhibit4.2,FileNo.1-2967 4.55 Ameren AmerenIllinoisIndenturedatedasofDecember1,1998, fromCentralIllinoisPublicService Company(nowknownasAmerenIllinois) toTheBankofNewYorkMellonTrust Company,N.A.,assuccessortrustee(CIPS
Indenture)Exhibit4.4,FileNo.333-59438 4.56 Ameren AmerenIllinoisFirstSupplementalIndenturetotheCIPS Indenture,datedasofJune14,2006June19,2006Form8-K,Exhibit4.2, FileNo.1-3672 4.57 Ameren AmerenIllinoisSecondSupplementalIndenturetotheCIPS Indenture,datedasofMarch1,2010Exhibit4.17,FileNo.333-166095 4.58 Ameren AmerenIllinoisThirdSupplementalIndenturetotheCIPS Indenture,datedasofOctober1,20102010Form10-K,Exhibit4.59, FileNo.1-3672 4.59 Ameren AmerenIllinoisAmerenIllinoisGlobalNote,dated October1,2010,representingCIPS IndentureSeniorNotes,6.125%due20282010Form10-K,Exhibit4.60, FileNo.1-3672 4.60 Ameren AmerenIllinoisAmerenIllinoisGlobalNote,dated October1,2010,representingCIPS IndentureSeniorNotes,6.70%Series SecuredNotesdue20362010Form10-K,Exhibit4.62, FileNo.1-3672 4.61 Ameren AmerenIllinoisIndentureofMortgageandDeedofTrust betweenIllinoisPowerCompany (predecessorininteresttoCILCOand AmerenIllinois)andBankersTrust Company(nowknownasDeutscheBank TrustCompanyAmericas),astrustee,dated asofApril1,1933(CILCOMortgage),
SupplementalIndenturebetweenthesame partiesdatedasofJune30,1933, SupplementalIndenturebetweenCILCO (predecessorininteresttoAmerenIllinois) andthetrustee,datedasofJuly1,1933, SupplementalIndenturebetweenthesame partiesdatedasofJanuary1,1935,and SupplementalIndenturebetweenthesame partiesdatedasofApril1,1940ExhibitB-1,RegistrationNo.2-1937; ExhibitB-1(a),RegistrationNo.2-2093;and ExhibitA,April1940Form8-K, FileNo.1-2732 4.62 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedDecember1,1949December1949Form8-K,ExhibitA, FileNo.1-2732 4.63 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedJuly1,1957July1957Form8-K,ExhibitA, FileNo.1-2732 4.64 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedFebruary1,1966February1966Form8-K,ExhibitA, FileNo.1-2732 169 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.65 AmerenAmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedJanuary15,1992January30,1992Form8-K,Exhibit4(b),
FileNo.1-2732 4.66 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedJune1,2006forthe SeriesAAandBBJune19,2006Form8-K,Exhibit4.11, FileNo.1-2732 4.67 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedDecember1,2008forthe SeriesCCDecember9,2008Form8-K,Exhibit4.5, FileNo.1-2732 4.68 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedasofOctober1,2010October7,2010Form8K,Exhibit4.4, FileNo.1-14756 4.69 Ameren AmerenIllinoisIndenturedatedasofJune1,2006,from CILCO(predecessorininteresttoAmeren Illinois)toTheBankofNewYorkMellon TrustCompany,N.A.,assuccessortrustee (CILCOIndenture)June19,2006Form8-K,Exhibit4.3, FileNo.1-2732 4.70 Ameren AmerenIllinoisFirstSupplementalIndenturetotheCILCO Indenture,datedOctober1,2010October7,2010Form8K,Exhibit4.1, FileNo.1-3672 4.71 Ameren AmerenIllinoisSecondSupplementalIndenturetothe CILCOIndenturedatedasofJuly21,2011September30,2011Form10-Q, Exhibit4.1,FileNo.1-3672 4.72 Ameren AmerenIllinoisCILCOIndentureCompanyOrder,dated June14,2006,establishingthe6.20%
SeniorSecuredNotesdue2016(including theglobalnote)andthe6.70%Senior SecuredNotesdue2036(includingthe globalnote)June19,2006Form8-K,Exhibit4.6, FileNo.1-2732 4.73 Ameren AmerenIllinoisCILCOIndentureCompanyOrder,dated December9,2008,establishingthe8.875%
SeniorSecuredNotesdue2013(including theglobalnote)December9,2008Form8-K,Exhibits4.2 and4.3,FileNo.1-2732 4.74 Ameren AmerenIllinoisGeneralMortgageIndentureandDeedof TrustdatedasofNovember1,1992 betweenIllinoisPowerCompany (predecessorininteresttoAmerenIllinois) andTheBankofNewYorkMellonTrust Company,N.A.,assuccessortrustee (AmerenIllinoisMortgage)1992Form10-K,Exhibit4(cc),
FileNo.1-3004 4.75 Ameren AmerenIllinoisSupplementalIndenturedatedasof March1,1998,toAmerenIllinoisMortgage forSeriesSExhibit4.41,FileNo.333-71061 4.76 Ameren AmerenIllinoisSupplementalIndenturedatedasof March1,1998,toAmerenIllinoisMortgage forSeriesTExhibit4.42,FileNo.333-71061 4.77 Ameren AmerenIllinoisSupplementalIndentureamendingthe AmerenIllinoisMortgagedatedasof June15,1999June30,1999Form10-Q,Exhibit4.2, FileNo.1-3004 4.78 Ameren AmerenIllinoisSupplementalIndenturedatedasof July15,1999,toAmerenIllinoisMortgage forSeriesUJune30,1999Form10-Q,Exhibit4.4, FileNo.1-3004 4.79 Ameren AmerenIllinoisSupplementalIndentureamendingthe AmerenIllinoisMortgagedatedasof December15,2002December23,2002Form8-K,Exhibit4.1, FileNo.1-3004 4.80 Ameren AmerenIllinoisSupplementalIndenturedatedasofJune1, 2006,toAmerenIllinoisMortgagefor SeriesAAJune19,2006Form8-K,Exhibit4.13, FileNo.1-3004 4.81 Ameren AmerenIllinoisSupplementalIndenturedatedasof November15,2007,toAmerenIllinois MortgageforSeriesBBNovember20,2007Form8-K,Exhibit4.4, FileNo.1-3004 170 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.82 AmerenAmerenIllinoisSupplementalIndenturedatedasofApril1, 2008,toAmerenIllinoisMortgagefor SeriesCCApril8,2008Form8-K,Exhibit4.9, FileNo.1-3004 4.83 Ameren AmerenIllinoisSupplementalIndenturedatedasof October1,2008,toAmerenIllinois MortgageforSeriesDDOctober23,2008Form8-K,Exhibit4.4, FileNo.1-3004 4.84 Ameren AmerenIllinoisSupplementalIndenture,datedasof October1,2010,toAmerenIllinois MortgageforSeriesCIPS-AA,CIPS-BBand
CIPS-CCOctober7,2010Form8K,Exhibit4.9, FileNo.1-3672 4.85 Ameren AmerenIllinoisSupplementalIndenture,datedasof January15,2011,toAmerenIllinois
MortgageExhibit4.78,FileNo.333-182258 4.86 Ameren AmerenIllinoisSupplementalIndenturedatedasof August1,2012,toAmerenIllinois MortgageforSeriesEEAugust20,2012Form8-K,Exhibit4.4, FileNo.1-3672 4.87 Ameren AmerenIllinoisSupplementalIndenture,datedasof December1,2013,toAmerenIllinois MortgageforSeriesFFDecember10,2013Form8-K,Exhibit4.5, FileNo.1-3672 4.88 Ameren AmerenIllinoisIndenture,datedasofJune1,2006fromIP (predecessorininteresttoAmerenIllinois) toTheBankofNewYorkMellonTrust Company,N.A.,assuccessortrustee (AmerenIllinoisIndenture)June19,2006Form8-K,Exhibit4.4, FileNo.1-3004 4.89 Ameren AmerenIllinoisFirstSupplementalIndenture,datedasof October1,2010,totheAmerenIllinois IndentureforSeriesCIPS-AA,CIPS-BBand
CIPS-CCOctober7,2010Form8K,Exhibit4.5, FileNo.1-14756 4.90 Ameren AmerenIllinoisSecondSupplementalIndenturetothe AmerenIllinoisIndenturedatedasof July21,2011September30,2011Form10-Q,Exhibit 4.2,FileNo.1-3672 4.91 Ameren AmerenIllinoisThirdSupplementalIndenturetothe AmerenIllinoisIndenturedatedasof May15,2012Exhibit4.83,FileNo.333-182258 4.92 Ameren AmerenIllinoisAmerenIllinoisIndentureCompanyOrder, datedJune14,2006,establishingthe 6.25%SeniorSecuredNotesdue2016 (includingtheglobalnote)June19,2006Form8-K,Exhibit4.7, FileNo.1-3004 4.93 Ameren AmerenIllinoisAmerenIllinoisIndentureCompanyOrder, datedNovember15,2007,establishing 6.125%SeniorSecuredNotesdue2017 (includingtheglobalnote)November20,2007Form8-K,Exhibit4.2, FileNo.1-3004 4.94 Ameren AmerenIllinoisAmerenIllinoisIndentureCompanyOrder, datedApril8,2008,establishing6.25%
SeniorSecuredNotesdue2018(including theglobalnote)April8,2008Form8-K,Exhibit4.4, FileNo.1-3004 4.95 Ameren AmerenIllinoisAmerenIllinoisIndentureCompanyOrder datedOctober23,2008,establishing9.75%
SeniorSecuredNotesdue2018(including theglobalnote)October23,2008Form8-K,Exhibit4.2, FileNo.1-3004 4.96 Ameren AmerenIllinoisAmerenIllinoisIndentureCompanyOrder datedAugust20,2012,establishing2.70%
SeniorSecuredNotesdue2022(including theglobalnote)August20,2012Form8-K,Exhibits4.2and 4.3,FileNo.1-3004 4.97 Ameren AmerenIllinoisAmerenIllinoisIndentureCompanyOrder datedDecember10,2013,establishing 4.80%SeniorSecuredNotesdue2043 (includingtheglobalnote)December10,2013Form8-K,Exhibit4.2, FileNo.1-3672 171 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:MaterialContracts 10.1 AmerenAmerenIllinoisUnilateralBorrowingAgreementbyand amongAmeren,IP(predecessorininterest toAmerenIllinois)andAmerenServices, datedasofSeptember30,2004October1,2004Form8-K,Exhibit10.3, FileNo.1-3004 10.2AmerenCompaniesThirdAmendedAmerenCorporationSystemUtilityMoneyPoolAgreement,as amendedSeptember30,2004October1,2004Form8-K,Exhibit10.2, FileNo.1-14756 10.3 Ameren AmerenMissouriCreditAgreement,datedasof November14,2012,byandamong Ameren,AmerenMissouriandJPMorgan ChaseBank,N.A.,asagent,andthelenders partythereto.November15,2012Form8-K,Exhibit10.1, FileNo.1-14756 10.4 Ameren AmerenIllinoisCreditAgreement,datedasofNovember14, 2012,byandamongAmeren,Ameren IllinoisandJPMorganChaseBank,N.A.,as agent,andthelenderspartythereto.November15,2012Form8-K,Exhibit10.2, FileNo.1-14756 10.5 Ameren*SummarySheetofAmerenCorporation Non-ManagementDirectorCompensation revisedonAugust9,2013andeffectiveas ofAugust12,2013September30,2013Form10-Q, Exhibit10.1,FileNo.1-14756 10.6 Ameren*Ameren'sDeferredCompensationPlanfor MembersoftheBoardofDirectors amendedandrestatedeffectiveJanuary1, 2009,datedJune13,2008June30,2008Form10-Q,Exhibit10.3, FileNo.1-14756 10.7AmerenCompanies*AmendmentdatedOctober12,2009,toAmeren'sDeferredCompensationPlanfor MembersoftheBoardofDirectors, effectiveJanuary1,20102009Form10-K,Exhibit10.15, FileNo.1-14756 10.8AmerenCompanies*AmendmentdatedOctober14,2010,toAmeren'sDeferredCompensationPlanfor MembersoftheBoardofDirectors2010Form10-K,Exhibit10.15, FileNo.1-14756 10.9AmerenCompanies*Ameren'sDeferredCompensationPlanasamendedandrestatedeffectiveJanuary1, 2010October14,2009Form8-K,Exhibit10.1, FileNo.1-1475610.10AmerenCompanies*AmendmentdatedOctober14,2010toAmeren'sDeferredCompensationPlan2010Form10-K,Exhibit10.17, FileNo.1-1475610.11AmerenCompanies*2012AmerenExecutiveIncentivePlanDecember14,2011Form8-K,Exhibit10.1,FileNo.1-1475610.12AmerenCompanies*2013AmerenExecutiveIncentivePlanDecember18,2012Form8-K,Exhibit10.1,FileNo.1-1475610.13AmerenCompanies*2012BaseSalaryTableforNamedExecutiveOfficers2011Form10-K,Exhibit10.23, FileNo.1-1475610.14AmerenCompanies*2013BaseSalaryTableforNamedExecutiveOfficers2012Form10-K,Exhibit10.17, FileNo.1-1475610.15AmerenCompanies*2014BaseSalaryTableforNamedExecutiveOfficers10.16AmerenCompanies*SecondAmendedandRestatedAmerenCorporationChangeofControlSeverance
Plan2008Form10-K,Exhibit10.37, FileNo.1-1475610.17AmerenCompanies*FirstAmendmentdatedOctober12,2009,totheSecondAmendedandRestated AmerenChangeofControlSeverancePlanOctober14,2009Form8-K,Exhibit10.2, FileNo.1-1475610.18AmerenCompanies*RevisedScheduleItoSecondAmendedandRestatedAmerenChangeofControl SeverancePlan,asamendedSeptember30,2013Form10-Q, Exhibit10.2,FileNo.1-14756 172 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:10.19AmerenCompanies*FormulaforDetermining2011TargetPerformanceShareUnitAwardstobeIssuedtoNamedExecutiveOfficersDecember15,2010Form8-K,Exhibit99.1, FileNo.1-1475610.20AmerenCompanies*FormulaforDetermining2012TargetPerformanceShareUnitAwardstobe IssuedtoNamedExecutiveOfficersDecember14,2011Form8-K,Exhibit99.1, FileNo.1-1475610.21AmerenCompanies*FormulaforDetermining2013TargetPerformanceShareUnitAwardstobe IssuedtoNamedExecutiveOfficersDecember18,2012Form8-K,Exhibit99.1, FileNo.1-1475610.22AmerenCompanies*AmerenCorporation2006OmnibusIncentiveCompensationPlanFebruary16,2006Form8-K,Exhibit10.3, FileNo.1-1475610.23AmerenCompanies*FormofPerformanceShareUnitAwardAgreementforAwardsIssuedin2011 pursuantto2006OmnibusIncentive CompensationPlanDecember15,2010Form8-K,Exhibit10.2, FileNo.1-1475610.24AmerenCompanies*FormofPerformanceShareUnitAwardAgreementforAwardsIssuedin2012 pursuantto2006OmnibusIncentive CompensationPlanDecember14,2011Form8-K,Exhibit10.2, FileNo.1-1475610.25AmerenCompanies*FormofPerformanceShareUnitAwardAgreementforAwardsIssuedin2013 pursuantto2006OmnibusIncentive CompensationPlanDecember18,2012Form8-K,Exhibit10.2, FileNo.1-1475610.26AmerenCompanies*PerformanceStockBonusAwardAgreement,datedMarch1,2011,between AmerenandAdamC.HeflinMarch31,2011Form10-Q,Exhibit10.1, FileNo.1-1475610.27AmerenCompanies*AmerenSupplementalRetirementPlanamendedandrestatedeffectiveJanuary1, 2008,datedJune13,2008June30,2008Form10-Q,Exhibit10.1, FileNo.1-1475610.28AmerenCompanies*FirstAmendmenttoamendedandrestatedAmerenSupplementalRetirementPlan, datedOctober24,20082008Form10-K,Exhibit10.44, FileNo.1-1475610.29AmerenAmerenIllinois*CILCOExecutiveDeferralPlanasamended effectiveAugust15,19991999Form10-K,Exhibit10, FileNo.1-273210.30AmerenAmerenIllinois*CILCOExecutiveDeferralPlanIIas amendedeffectiveApril1,19991999Form10-K,Exhibit10(a),
FileNo.1-273210.31AmerenAmerenIllinois*CILCORestructuredExecutiveDeferral Plan(approvedAugust15,1999)1999Form10-K,Exhibit10(e),
FileNo.1-273210.32AmerenNovationandAmendmentofPutOptionAgreement,datedMarch14,2013,byand amongMedinaValley,AERG,Gencoand
AmerenMarch19,2013Form8-K,Exhibit10.3, FileNo.1-1475610.33Ameren*EmploymentandChangeofControlAgreement,datedMarch13,2013,between StevenR.Sullivan,AERandAmerenMarch19,2013Form8-K,Exhibit10.4, FileNo.1-14756Statementre:ComputationofRatios 12.1 AmerenAmeren'sStatementofComputationof RatioofEarningstoFixedCharges 12.2AmerenMissouriAmerenMissouri'sStatementofComputationofRatioofEarningstoFixed ChargesandCombinedFixedChargesand PreferredStockDividendRequirements 12.3AmerenIllinoisAmerenIllinois'StatementofComputation ofRatioofEarningstoFixedChargesand CombinedFixedChargesandPreferred StockDividendRequirements 173 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:CodeofEthics 14.1AmerenCompaniesCodeofEthics,asamendedFebruary8, 20132012Form10-K,Exhibit14.1,FileNo.1-14756SubsidiariesoftheRegistrant 21.1AmerenCompaniesSubsidiariesofAmerenConsentofExpertsandCounsel 23.1 AmerenConsentofIndependentRegisteredPublic AccountingFirmwithrespecttoAmeren 23.2AmerenMissouriConsentofIndependentRegisteredPublicAccountingFirmwithrespecttoAmeren
Missouri 23.3AmerenIllinoisConsentofIndependentRegisteredPublic AccountingFirmwithrespecttoAmeren
IllinoisPowerofAttorney 24.1 AmerenPowersofAttorneywithrespecttoAmeren 24.2AmerenMissouriPowerofAttorneywithrespecttoAmeren Missouri 24.3AmerenIllinoisPowerofAttorneywithrespecttoAmeren
IllinoisRule13a-14(a)/15d-14(a)Certifications 31.1 AmerenRule13a-14(a)/15d-14(a)Certificationof PrincipalExecutiveOfficerofAmeren 31.2 AmerenRule13a-14(a)/15d-14(a)Certificationof PrincipalFinancialOfficerofAmeren 31.3AmerenMissouriRule13a-14(a)/15d-14(a)CertificationofPrincipalExecutiveOfficerofAmeren
Missouri 31.4AmerenMissouriRule13a-14(a)/15d-14(a)CertificationofPrincipalFinancialOfficerofAmeren
Missouri 31.5AmerenIllinoisRule13a-14(a)/15d-14(a)Certificationof PrincipalExecutiveOfficerofAmeren
Illinois 31.6AmerenIllinoisRule13a-14(a)/15d-14(a)Certificationof PrincipalFinancialOfficerofAmerenIllinoisSection1350Certifications 32.1 AmerenSection1350CertificationofPrincipal ExecutiveOfficerandPrincipalFinancial OfficerofAmeren 32.2AmerenMissouriSection1350CertificationofPrincipalExecutiveOfficerandPrincipalFinancial OfficerofAmerenMissouri 32.3AmerenIllinoisSection1350CertificationofPrincipal ExecutiveOfficerandPrincipalFinancial OfficerofAmerenIllinoisAdditionalExhibits 99.1AmerenCompaniesAmendedandRestatedTaxAllocationAgreement,datedasofNovember21,2013InteractiveDataFile101.INS**AmerenCompaniesXBRLInstanceDocument101.SCH**AmerenCompaniesXBRLTaxonomyExtensionSchema Document 174 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:101.CAL**AmerenCompaniesXBRLTaxonomyExtensionCalculationLinkbaseDocument101.LAB**AmerenCompaniesXBRLTaxonomyExtensionLabelLinkbase Document101.PRE**AmerenCompaniesXBRLTaxonomyExtensionPresentationLinkbaseDocument101.DEF**AmerenCompaniesXBRLTaxonomyExtensionDefinition DocumentThefilenumberreferencesfortheAmerenCompanies'filingswiththeSECare:Ameren,1-14756;AmerenMissouri,1-2967;andAmerenIllinois,1-3672.*Compensatoryplanorarrangement.**AttachedasExhibit101tothisreportisthefollowingfinancialinformationforeachoftheAmerenCompanies'AnnualReportonForm10-KfortheyearendedDecember31,2013,formattedinXBRL(eXtensibleBusinessReportingLanguage):(i)theConsolidatedStatementofIncome(Loss)fortheyearsendedDecember31,2013,2012,and2011,(ii)theConsolidatedStatementofComprehensiveIncome(Loss)fortheyearsendedDecember31,2013,2012and2011,(iii)the ConsolidatedBalanceSheetatDecember31,2013,andDecember31,2012,(iv)theConsolidatedStatementofCashFlowsfor theyearsendedDecember31,2013,2012,and2011,(v)theConsolidatedStatementofStockholders'Equityfortheyears endedDecember31,2013,2012,and2011,and(vi)theCombinedNotestotheFinancialStatementsfortheyearended December31,2013.EachregistrantherebyundertakestofurnishtotheSECuponrequestacopyofanylong-termdebtinstrumentnotlistedabovethatsuchregistranthasnotfiledasanexhibitpursuanttotheexemptionprovidedbyItem601(b)(4)(iii)(A)of RegulationS-K.
175 Exhibit31.1RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALEXECUTIVEOFFICEROFAMERENCORPORATION(requiredbySection302oftheSarbanes-OxleyActof2002)I,ThomasR.Voss,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2013,ofAmerenCorporation; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March3,2014/s/ThomasR.VossThomasR.VossChairmanandChiefExecutiveOfficer (PrincipalExecutiveOfficer)
Exhibit31.2RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALFINANCIALOFFICEROFAMERENCORPORATION(requiredbySection302oftheSarbanes-OxleyActof2002)I,MartinJ.Lyons,Jr.,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2013,ofAmerenCorporation; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March3,2014/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit31.3RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALEXECUTIVEOFFICEROFUNIONELECTRICCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,WarnerL.Baxter,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2013,ofUnionElectricCompany; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March3,2014/s/WarnerL.BaxterWarnerL.BaxterChairman,PresidentandChiefExecutiveOfficer (PrincipalExecutiveOfficer)
Exhibit31.4RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALFINANCIALOFFICEROFUNIONELECTRICCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,MartinJ.Lyons,Jr.,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2013,ofUnionElectricCompany; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March3,2014/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit31.5RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALEXECUTIVEOFFICEROFAMERENILLINOISCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,RichardJ.Mark,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2013,ofAmerenIllinoisCompany; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March3,2014/s/RichardJ.MarkRichardJ.MarkChairman,PresidentandChiefExecutiveOfficer (PrincipalExecutiveOfficer)
Exhibit31.6RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALFINANCIALOFFICEROFAMERENILLINOISCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,MartinJ.Lyons,Jr.,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2013,ofAmerenIllinoisCompany; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March3,2014/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit32.1SECTION1350CERTIFICATIONOFAMERENCORPORATION(requiredbySection906oftheSarbanes-OxleyActof2002)InconnectionwiththereportonForm10-KforthefiscalyearendedDecember31,2013,ofAmerenCorporation(the"Registrant")asfiledbytheRegistrantwiththeSecuritiesandExchangeCommissiononthedatehereof(the"Form10-K"),eachundersignedofficeroftheRegistrantdoesherebycertify,pursuantto18U.S.C.§1350,asadoptedpursuantto§906of theSarbanes-OxleyActof2002,that:(1)TheForm10-KfullycomplieswiththerequirementsofSection13(a)or15(d)oftheSecuritiesExchangeActof1934(15U.S.C.78mor78o(d));and(2)TheinformationcontainedintheForm10-Kfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheRegistrant.Date:March3,2014/s/ThomasR.VossThomasR.VossChairmanandChiefExecutiveOfficer (PrincipalExecutiveOfficer)/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit32.2SECTION1350CERTIFICATIONOFUNIONELECTRICCOMPANY(requiredbySection906oftheSarbanes-OxleyActof2002)InconnectionwiththereportonForm10-KforthefiscalyearendedDecember31,2013,ofUnionElectricCompany(the"Registrant")asfiledbytheRegistrantwiththeSecuritiesandExchangeCommissiononthedatehereof(the"Form10-K"),eachundersignedofficeroftheRegistrantdoesherebycertify,pursuantto18U.S.C.§1350,asadoptedpursuantto§906of theSarbanes-OxleyActof2002,that:(1)TheForm10-KfullycomplieswiththerequirementsofSection13(a)or15(d)oftheSecuritiesExchangeActof1934(15U.S.C.78mor78o(d));and(2)TheinformationcontainedintheForm10-Kfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheRegistrant.Date:March3,2014/s/WarnerL.BaxterWarnerL.BaxterChairman,PresidentandChiefExecutiveOfficer (PrincipalExecutiveOfficer)/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit32.3SECTION1350CERTIFICATIONOFAMERENILLINOISCOMPANY(requiredbySection906oftheSarbanes-OxleyActof2002)InconnectionwiththereportonForm10-KforthefiscalyearendedDecember31,2013,ofAmerenIllinoisCompany(the"Registrant")asfiledbytheRegistrantwiththeSecuritiesandExchangeCommissiononthedatehereof(the"Form10-K"),eachundersignedofficeroftheRegistrantdoesherebycertify,pursuantto18U.S.C.§1350,asadopted pursuantto§906oftheSarbanes-OxleyActof2002,that:(1)TheForm10-KfullycomplieswiththerequirementsofSection13(a)or15(d)oftheSecuritiesExchangeActof1934(15U.S.C.78mor78o(d));and(2)TheinformationcontainedintheForm10-Kfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheRegistrant.Date:March3,2014/s/RichardJ.MarkRichardJ.MarkChairman,PresidentandChiefExecutiveOfficer (PrincipalExecutiveOfficer)/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
INVESTOR INFORMATION Common Stock and Dividend InformationAmerens common stock is listed on the New York Stock Exchange (ticker symbol: AEE). Ameren began trading on January 2, 1998, following the merger of Union Electric Company and CIPSCO Inc. on December 31, 1997. Ameren common shareholders of record totaled 57,623 on January 31, 2014. The following table provides the price ranges, closing prices and dividends declared per Ameren common
share for each quarter of 2013 and 2012.
AEE 2013Quarter Ended High Low Close Dividends DeclaredMarch 31 $35.12 $30.64 $35.02 40 ¢June 30 36.74 32.34 34.44 40 September 30 36.70 32.61 34.84 40 December 31 37.31 34.18 36.16 40 AEE 2012Quarter Ended High Low Close Dividends DeclaredMarch 31 $33.68 $30.89 $32.58 40 ¢June 30 34.04 31.15 33.54 40 September 30 35.30 32.27 32.67 40 December 31 33.21 28.43 30.72 40 Annual Meeting The annual meeting of Ameren Corporation shareholders will convene at 9 a.m. (Central Time), Thursday , April 24, 2014, at the Saint Louis Art Museum, One Fine Arts Drive, Forest Park, St. Louis, MO, 63110. The
annual shareholder meetings of Ameren Illinois Company and Union
Electric Company will be held at the same time.
DRPlusAny person of legal age or entity, whether or not an Ameren shareholder, is eligible to participate in DRPlus, Amerens dividend reinvestment and stock purchase plan. Participants can:* Make cash investments by check or automatic direct debit from their bank accounts to purchase Ameren common stock, up to a maximum of
$120,000 annually;* Reinvest their dividends in Ameren common stock (the minimum dividend reinvestment requirement is 10%), per share; and
- Place Ameren common stock certi" cates in safekeeping and receive regular account statements.For more information about DRPlus, you may obtain a prospectus from Amerens Investor Services representatives.
Direct Deposit of DividendsAll registered Ameren common and Ameren Illinois Company and Union Electric Company preferred shareholders can have their cash dividends automatically deposited to their bank accounts. This service gives shareholders immediate access to their dividend on the dividend payment date and eliminates the possibility of lost or stolen dividend checks.
Corporate Governance Documents Ameren makes available, free of charge through its website (Ameren.com), the charters of the Board of Directors Audit and Risk Committee, Human Resources Committee, Nominating and Corporate Governance Committee, Finance Committee and Nuclear Oversight and Environmental Committee. Also available on Amerens website are its corporate governance guidelines, policy regarding nominations of directors, policy regarding communications to the Board of Directors, policy and procedures with respect to related person transactions, code of business conduct (referred to as the Corporate Compliance Policy)
and code of ethics for principal executive and senior " nancial of" cers. These documents are also available in print, free of charge upon written request, from the Of" ce of the Secretary, Ameren Corporation, P.O. Box 66149, Mail Code 1370, St. Louis, MO 63166-6149. Ameren also makes available, free of charge through its website, the companys annual reports on SEC Form 10-K, quarterly reports on SEC Form 10-Q, and its
current reports on SEC Form 8-K, including any chief executive of" cer and chief " nancial of" cer certi" cations required to be " led with the Securities and Exchange Commission therewith.
Online Stock Account AccessAmerens website (Ameren.com) allows registered shareholders to access their account information online. Shareholders can securely change their reinvestment options, view account summaries, receive DRPlus statements and more through the website. This is a free service.
Investor ServicesAmerens Investor Services representatives are available to help you each business day from 8 a.m. to 4 p.m. (Central Time). Please write or call: Ameren Services Company , Investor ServicesP.O. Box 66887 St. Louis, MO 63166-6887
314.554.3502 or 800.255.2237
invest@ameren.comTransfer Agent, Registrar and Paying AgentThe Transfer Agent, Registrar and Paying Agent for Ameren common
stock and Ameren Illinois Company and Union Electric Company preferred stock is Ameren Services Company
.Of" ce Ameren Corporation
One Ameren Plaza 1901 Chouteau Avenue
St. Louis, MO 63103
314.621.3222 44607_CvrA.indd 4-6 2/25/14 11:42 PM P.O. Box 66149 l St. Louis, MO 63166-6149 Ameren.com 44607_CvrA.indd 1-3 2/28/14 12:27 AM