ULNRC-05944, Ameren Corp 2011 Annual Report
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2011 Annual Report LIVING OUR PROMISE 4 0 7 5 0_P B_c v r.i n d d 1 2/2 7/1 2 1: 1 7 P M 40750_PB_cvr.indd 22/27/12 1:18 PM Contents 03 Letter to Shareholders 06 Leading Today 12 Leading The Way 18 Financial Highlights 20 Of" cers and Directors 01At home. At work. At play. Ameren serves 2.4 million electric and more than 900,000 natural gas customers in Illinois and Missouri, providing the electricity and natural
gas that are vitally important to our economy and our way of living. Thats why Focused Energy. For Life. is the promise we make to you.
Ameren is committed to ensuring that the energy our customers need is there when they need itnow, and for life.
Through strong shareholder returns, great customer service and giving back to our local communities, we work to build value for all.
4 0 7 5 0_P B_.i n d d 1 2/2 7/1 2 1: 4 0 P M Ameren is leading the way-making decisions today that will produce future results for our shareholders, customers
and co-workers.
4 0 7 5 0_P B_.i n d d 2 2/2 7/1 2 1: 4 1 P M 03My fellow shareholders, The world of energy is rapidly changing. In 2011, we showed that Ameren is capable of not only weathering a challenging business climate, but also of leading the waymaking decisions today that will produce future results for our shareholders, customers and co-workers. Enhancing Shareholder Value The actions we took in 2011 re" ect our " rm commitment to delivering long-term total shareholder returns in the top half of our industry peer group. We plan to accomplish this by improving the earned returns in our regulated business segments, investing capital in a disciplined manner, and tightly managing our cash " ows. In 2011, we invested more than $1 billion primarily in new regulated utility infrastructure, generating enough cash from operations to fund these investments and the common stock dividend while also reducing outstanding borrowings. In October, the Board of Directors declared a quarterly dividend of 40 cents per share. This represented an increase of 3.9 percent and demonstrates our understanding that you expect dividend growth. The resulting annualized equivalent rate of $1.60 per share is well covered by earnings and cash " ows from our regulated business segments. We continue to pursue a disciplined approach to investing. We are moving forward with plans to build more than $1.2 billion in regional electric transmission projects. In December, these projects were approved by the Midwest Independent Transmission System Operator. Customers will bene" t from improved electric system reliability and ef" ciency, and these Federal Energy Regulatory Commission-regulated projects are expected to earn timely and fair returns for shareholders. Our investment discipline is also evident at our merchant generation business, Ameren Energy Resources. In 2011, we closed two older energy centers and re" ned our environmental compliance strategy. These actions enabled us to reduce expected capital expenditures, through 2015, by a total of $270 million from prior plans. In 2012, low wholesale power prices persist, and the timing of required compliance with new federal air emission rules is uncertain. As a result, our merchant generation business further reduced environmental capital expenditure plansdelaying the construction of environmental equipment at our Newton and Edwards energy centers. We continue to work hard to position our low-cost coal-" red merchant generation " eet to weather the current period of low power prices and advocate for fair regulatory and power market policies that will enhance its value.OUR PROMISE TO SHAREHOLDERS...Amerens Executive Leadership Team:
(left to right) Scott A. Cisel, Warner L. Baxter, Charles D. Naslund, Daniel F. Cole, Thomas R. Voss, Adam C. He" in, Martin J. Lyons, Jr., Gregory L. Nelson, Maureen A. Borkowski, Richard J. Mark, Michael L. Moehn, and Steven R. Sullivan.
4 0 7 5 0_P B_.i n d d 2/2 7/1 2 1: 4 1 P M Modernizing Illinois and Missouri Regulatory FrameworksOur company plays a pivotal role in fueling our regional economy. We provide competitive rates and reliable service, fostering growth. In addition, we are positioned to create jobs and spur economic growth by investing in needed 21st-century energy infrastructure. However, to modernize our infrastructure we need modernized 21st-century regulatory frameworks that provide timely cost recovery and reasonable opportunities to earn fair returns on these investments. Im pleased to report we made signi" cant progress in improving our Illinois regulatory framework in 2011. In October, the Energy Infrastructure Modernization Act was enacted into law, which allows for performance-based formula ratemaking in Illinois. This law is a win for the state and customers who will enjoy enhanced reliability and a more predictable electric delivery rate-setting framework. This law provides utilities with timely recovery of costs and an improved opportunity to earn fair returns on investment. As a result, Ameren Illinois expects to invest an additional $625 million in system upgrades and Smart Grid modernization projects over the next decade, creating an additional 450 jobs during the peak program years. In Missouri, we continue to explore options to reduce regulatory lag and enable much-needed infrastructure improvements. Regulatory lag results from a framework that uses out-of-date cost and investment levels to establish rates. In July 2011, the Public Service Commission approved a $173 million increase in electric rates. Importantly, this decision included recovery of air emission reduction scrubber technology at our Sioux Energy Center, and it maintained key cost-recovery mechanisms. By the end of the year, we completed a voluntary retirement program that will help align spending with current rate levels and economic conditions.
Achieving Operational Excellence and InnovationAlso in 2011, Ameren continued its focus on operational excellence. Not only did my co-workers increase ef" ciencies in Amerens day-to-day business, but they also pursued innovative ideas to bene" t all stakeholders. A prime example is Ameren Missouris new, long-term contract with Peabody Energy. As part of a proactive business strategy to meet federal emissions rules, our Missouri utility will purchase 91 million tons of ultra-low-sulfur coalallowing us to defer signi" cant environmental expenditures. We will improve air quality at a dramatically lower cost to customers, who otherwise might have shouldered near-term electric rate increases of up to 20 percent.
04 4 0 7 5 0_P B_.i n d d 4 2/2 7/1 2 1: 4 1 P M Other operational highlights include:
- The second-longest continuous run of Ameren Missouris Callaway Energy Center.
In October, the nuclear energy center refueled after operating continuously for nearly 500 days. This uninterrupted operation between refuelings resulted in lower costs, with a sustained source of clean power for customers.
- Generation records set at coal-" red energy centers. In an industry where reliability is critical, our energy centers are performing at all-time levels. This year, two of our merchant generation energy centers achieved milestoneswith Duck Creek setting an all-time monthly generation record and Coffeen joining the gigawatt club by producing more than 1,000 megawatts for an entire hour for the " rst time ever. In addition, Ameren Missouris Meramec Energy Center operated a record 292 days without interruption, and in September, Labadie Energy Center was recognized by Navigant Consulting with an operational excellence award based on performance from 2006 to 2010.
- Completion of a supply chain optimization program.
Ameren evaluated inventory levels across the system, thereby reducing purchasing needs. In three years, this program has achieved $35 million in savings, with more to come.
- Consolidation of electric and natural gas billing for customers formerly served by different Illinois legacy companies.
We continue to generate increased ef" ciencies and customer convenience after merging AmerenCIPS, AmerenCILCO and AmerenIP into one entity, Ameren Illinois, in 2010.In support of operational excellence, our dedicated workforce maintains a fundamental commitment to both physical and cyber safetyensuring attention to safety in all aspects of our work and protecting our company against data threats. Realizing Our Vision The news Ive shared here is just a glimpse of our progress in 2011. I invite you to learn more by reviewing this report and by attending our Annual Meeting in St. Louis at Powell Symphony Hall at 9 a.m. on April 24, 2012.Ours is a dynamic industry, so my colleagues and I are committed to transparency: sharing with you the opportunities we enjoy, the challenges we face and the plans we have in place to support our vision of Leading the way to a secure energy future. At Ameren, we carefully craft our culture so that every employee understands his or her role in realizing that vision. I believe that by educating all stakeholders about our focus, we improve understanding of our company and increase the opportunity to engage in meaningful conversations that result in smarter decisions about energy in our regiontoday, and for years to come. Sincerely, 05Thomas R. Voss Chairman, President and Chief Executive Of" cer, Ameren CorporationAmerens keen focus on operations bolsters our " nancial performance 4 0 7 5 0_P B_t x t.i n d d 5 2/2 7/1 2 1: 4 1 P M Energy powers our lives and our economy. Were focused on keeping the lights on and
gas " owing-today and for generations to come.Jeff Coyle, manager, Coffeen Energy Center, walks the turbine deck with M.C. King, shift supervisor.
The editors of Power Engineering magazine recognized Coffeens scrubber project as one of the top three best coal-" red
projects at its December international conference. By installing high-tech
scrubbers, Ameren is removing more than 95 percent of sulfur dioxide emissions to provide cleaner power.
4 0 7 5 0_P B_t x t.i n d d 6 2/2 7/1 2 1: 4 1 P M Being focused means keeping the lights on and gas " owing, while forming powerful connections with people. Heres a look at recent progress across our 64,000-square-mile service territory.Cleaner, Smarter, Safer InfrastructureWith our lives plugged in like never before, reliability is core to delivering on our promise that the energy you need will be there when you need ittoday and for generations to come. And that promise starts at the sourceour energy centers. To provide cleaner power, Ameren installed scrubbers at our Sioux, Coffeen and Duck Creek energy centersremoving more than 95 percent of sulfur dioxide emissions. Getting that power to growing areas requires strong infrastructure. In 2011, progress continued on a $63 million high-voltage transmission line project into the northernmost reaches of Ameren Illinois service territory to meet growing customer needs. And new distribution system automation means we can " nd and " x outages faster. Our automated substation circuits in Maryland Heights, Mo., attracted the attention of the entire industry as a showcase of smart grid in action. Our Decatur, Ill., area substations are now linked to smart devices that can sense and stop interruptions. Thanks to these projects and others like them, Ameren customers enjoy better reliability. On the natural gas side of the business, we continually monitor system integrity across our 21,400 miles of natural gas pipeline.
07LEADING TODAY...4 0 7 5 0_P B_t x t.i n d d 7 2/2 7/1 2 1: 4 1 P M A Powerful ForceEvery utility system, no matter how reliable, is subject to unpredictable weather events. Our crews were well prepared to be a powerful counterforce to natures destruction in 2011. On Jan. 1, Ameren Missouri crews rapidly responded after a tornado touched down in Sunset Hills, Mo. The combination of wind and ice can also wreak havoc on exposed lines. In February, Illinois was sheathed in ice, and the states Commerce Commission publicly commended Ameren Illinois structured preparation and swift restoration of service.Only two months later, an EF-4 tornado tore through north St. Louis County. Ameren Missouri worked around the clock through the devastation, and later
received recognition from the St. Louis County Council for its restoration work amid the areas worst tornado in four decades.Our support extends beyond restoring power. In August, Ameren presented an
$84,000 check to the American Red Cross for disaster relief. The donation included employee and corporate gifts for the Japanese tsunami, the north St. Louis County tornado and the Joplin, Mo., tornado.
Helping Customers Make Smart ChoicesAt Ameren, we believe that customer education is an important responsibility and a vital component of our business.In June, we opened an Energy Learning Center at our St. Louis headquarters. Here, tour groups can meet experts and learn about a variety of topics, including renew-able power, energy ef" ciency and environmental upgrades throughout our system.To complement our physical learning center, Ameren also offers a virtual library of current and emerging topics, available at AmerenMissouri.com/energyadvisor.
Customers can also speak with an expert by phone. As the world of energy changes, our employees will lead the way.Customers go to our ActOnEnergy.com website to take advantage of our energy ef" ciency programs. In 2011, more than 125,000 children learned about energy safety and conservation because Illinois teachers took advantage of our free, web-based Kids Act On Energy program.
08 RESPONSIVEWarner Baxter, president and CEO, Ameren
Missouri, left, explains the companys rapid response
and restoration efforts to Missouri Gov. Jay
Nixon after a tornado tore
through Sunset Hills, Mo.
4 0 7 5 0_P B_t x t.i n d d 8 2/2 7/1 2 1: 4 1 P M RELIABLE 09 Small businesses, such as PW Pizza in St. Louis, are the backbone of our economy.
Ameren keeps them up
and running with reliable and affordable power. Our
customers know they can count
on us to make sure the energy
they need is there when they need it-now and in the future.
4 0 7 5 0_P B_t x t.i n d d 9 2/2 7/1 2 1: 4 2 P M SUPPORTIVE 10 Our employees strengthen the communities in which they live
and work by volunteering and
giving back.
Strong communities foster better school systems, encourage business investment, and generate economic growth.
In 2011, our employees gave
back and volunteered more than
100,000 hours0 days <br />0 hours <br />0 weeks <br />0 months <br /> throughout our service territory.
4 0 7 5 0_P B_t x t.i n d d 1 0 2/2 7/1 2 1: 4 2 P M Shining a Light on What MattersOur employees believe in leading by examplecontributing time and talent to worthy causes. Making our communities better places to live2011 was a banner year for volunteerism, with thousands of Ameren co-workers building low-income housing, delivering meals and working with veteransto name just a few activities. On Oct. 15, Ameren held our very " rst Community Connections Day; in less than 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br />, employees and their friends and families gave nearly 390 hours0.00451 days <br />0.108 hours <br />6.448413e-4 weeks <br />1.48395e-4 months <br /> of time at 10 different locations in Illinois and Missouri. Supporting those who serveWe are honored to employ hundreds of veterans. In 2011, Ameren received the U.S. Secretary of Defense Employer Support Freedom Award, the Defense Departments highest honor for companies that demonstrate extraordinary support of employees serving in the Guard and Reserve. Also, GI Jobs magazine named Ameren one of the nations top 100 military-friendly employers for the third year in a row. Offering energy assistanceThis year, Ameren made an unprecedented commitment of $5 million to customer assistance programs, including $1 million for military personnel. In todays economy, people are " nding they need extra help, so our utilities have improved access to such programs.Committed to Diversity Ameren is a Fortune 500 company, and our actions can have lasting impact. As a major purchaser of goods and services, we have built an aggressive program to give quali" ed diverse suppliers the opportunity to work with us. In 2011, DiversityBusiness.com named Ameren a Top 50 Organization for Multicultural Business Opportunities. Ameren turns to local colleges and universities to build our next-generation workforce. In 2011, we partnered with the Missouri University of Science and Technology to establish the Ameren Diversity Scholars Program, designed to recruit female and minority students into engineering and computer science.
COMMITTED 11 In 2011, Ameren won a prestigious Employer Support Freedom Award from the U.S. Defense
Department.
GI Jobs magazine named the
company one of the nations top 100 military-
friendly employers for the third year in a row.
4 0 7 5 0_P B_t x t.i n d d 1 1 2/2 7/1 2 1: 4 2 P M Ameren is more than an energy companywere a catalyst for growth and a resource for life. Were planning now to meet the needs of future generations.
An Economic EngineTo thrive, our region needs affordable energy and modern infrastructure.
In independent studies of Amerens operating companies, it was determined that the annual average economic impact on our service area was more than $6.5 billion, and we support more than 38,000 direct and indirect jobs. With constructive regulatory frameworks in place that support investment, we can do even more. Transmission takes offAmeren is well positioned at the nations crossroads, so our newest subsidiary, Ameren Transmission Company (ATX), has a unique opportunity
to strengthen the transmission system our country depends on and provide Ameren with a new avenue of earnings growth.In December, a trio of projects received approval from the Midwest Independent Transmission System Operatorclearing ATX to invest more
than $1.2 billion and create many new construction, supplier and other jobs. These projects will enhance reliability, make our region more attractive to industries, and help us incorporate renewable power sources.
12LEADING THE WAY...
4 0 7 5 0_P B_t x t.i n d d 1 2 2/2 7/1 2 1: 4 2 P M Ameren is more than an energy company-were a catalyst for growth and a resource for life. And were planning now to meet the
needs of future generations.
Rodney Hilburn, substation maintenance construction supervisor, Ameren Illinois, operates the latest in Smart Grid technology.
This technology allows the
company to remotely control
substation switches to quickly
isolate damage and, in many
cases, automatically restore
power by switching to an alternate supply.
4 0 7 5 0_P B_t x t.i n d d 1 3 2/2 7/1 2 1: 4 2 P M 14 DRIVING GROWTHAmerens economic development team offers
companies vital services like site selection, workforce
analysis and economic
data. The team helps local communities attract employers
like Pioneer Hi-Bred, which selected New Madrid County, Mo., to build its new soybean
production plant. The plant
opened in 2011.
4 0 7 5 0_P B_t x t.i n d d 1 4 2/2 7/1 2 1: 4 2 P M 15MAP to the futureWith performance-based formula ratemaking approved in Illinois, Amer en Illinois has developed a Modernization Action Plan (MAP) to guide our Smart Grid improvements for the next 10 years. This will ensure a more secure delivery system that bene" ts customers, co-workers, investors and the environment. Dedicated development Ameren has a dedicated economic development team to attract and retain strong employers. Last year, our efforts helped draw more than $1.8 billion in investment to the area, along with some 4,000 jobs. The health of our region is critical to our success.For such outstanding efforts, in September, our company was named a Top 10 Utility in Economic Development by Site Selection magazine. Your Resource for Whats Next We think a 21st-century energy provider should provide more than energy. We should offer answers. That means staying ahead of technologies and helping people understand them. Solar powerAt Amerens headquarters, our engineers are comparing four types of solar technologies. Our rooftop installation is the largest of its kind in the state. To share our knowledge with customers, we created a micrositeAmerenSolar.comthat includes real-time data about solar performance in our area.Electric vehiclesIn 2011, our co-workers got " rst-hand experience with a prototype of Mitsubishis i-MiEV sedan, and our " eet added " ve plug-in hybrid electric trucks and charging stations. Employees are driving three Chevy Voltstwo in Missouri and one in Illinoisas part of an industry research demonstration. Were prepared to help the public get plug-in ready. Customers can learn more and even request a free readiness assessment of their home or business at Ameren.com. Ameren is also participating in a regional Department of Energy task force concep-tualizing how public charging infrastructure might take shape in the Midwest.
PROACTIVE One of the keys to the success of electric
vehicles is access to
abundant, safe and reliable electricity.
We are working to ensure
that our system is ready
if these vehicles are
widely adopted in the
future. Employees have
been driving three Chevy Volts to better understand
the cost, charging time, equipment needed and
overall economics of
electric vehicles.
4 0 7 5 0_P B_t x t.i n d d 1 5 2/2 7/1 2 1: 4 3 P M Generations AheadWe promise to be there when our customers " ip the switch or adjust the thermostat. At Ameren, were planning ahead to ensure that our customers kids and grandkids enjoy abundant, reliable energy.Trash to electricityAmeren Missouri will bring its Maryland Heights Renewable Energy Center online in 2012. Using methane gas from a land" ll to generate electricity, this innovative facility will be among the largest of its kind in the nationoffering a reliable, local source of energy that can power 10,000 homes.Integrated Resource Plan In 2011, Ameren Missouri " led a comprehensive plan assessing the regions generation needs for the next 20 years. We know that meeting the regions needs takes a combination of energy sources, and our team is committed to " nding the right balance. A copy of this plan is available at AmerenMissouri.com. 16 An inside look at two of the three Ameren Missouri
Maryland Heights Renewable
Energy Center turbines.
Capturing land" ll methane
gas to generate electricity is
one the most cost-effective
renewable energy resources
we are building to serve our
customers.INNOVATIVE 4 0 7 5 0_P B_t x t.i n d d 1 6 2/2 7/1 2 1: 4 3 P M FORWARD LOOKING 17Bill Barbieri, manager, Renewable Energy, Ameren
Missouri, stands on the site
of the Maryland Heights Renewable Energy Center.
The facility will turn methane gas from a land" ll into electricity. Barbieri is leading Ameren Missouris charge
to build a diverse renewable
energy portfolio.
4 0 7 5 0_P B_t x t.i n d d 1 7 2/2 7/1 2 1: 4 3 P M AMEREN CONSOLIDATED (In millions, except per share amounts and as noted) 2011 2010 2009RESULTS OF OPERATIONS Operating revenues
$7,531 $7,638 $7,135 Operating expenses $6,290 $6,722 $5,719 Operating income
$1,241 $916 $1,416 Net income attributable to Ameren Corporation $519 $139 $612COMMON STOCK DATA Earnings per basic and diluted share $2.15 $0.58 $2.78 Dividends per common share
$1.555 $1.540 $1.540 Dividend yield (year-end) 4.7% 5.5% 5.5%Market price per common share (year-end closing)
$33.13 $28.19 $27.95 Shares outstanding (weighted average) 241.5 238.8 220.4Total market value of common shares (year-end)
$8,037 $6,777 $6,635 Book value per common share
$32.64 $32.15 $33.08 BALANCE SHEET DATA Property and plant, net
$18,127 $17,853 $17,610Total assets
$23,645 $23,511 $23,702 Long-term debt obligations, excluding current maturities
$6,677 $6,853 $7,111 Capitalization ratios Common equity 53.4% 51.3% 50.3% Preferred stock, not subject to mandatory redemption 1.0% 0.9% 1.3% Debt and preferred stock subject to mandatory redemption, net of cash 45.6% 47.8% 48.4%OPERATING DATATotal electric sales (kilowatt-hours) 111,299 111,887 104,062 Native natural gas sales (decatherms in thousands) 92,829 103,012 107,647 Total generation output (kilowatt-hours) 77,917 77,698 76,239 Electric customers 2.4 2.4 2.4 Natural gas customers 0.9 0.9 0.9 Year Ended December 31,Financial Highlights 18 4 0 7 5 0_P B_t x t.i n d d 1 8 2/2 7/1 2 1: 4 3 P M Electrical Generating Capacity(Expected for 2012 summer peak)Ameren companies serve approximately 2.4 million electric and more than 900,000 natural gas customers over 64,000 square miles in Illinois and Missouri. Our service
territory includes a diverse base of residential, commercial and large industrial customers in
both urban and rural areas. In Missouri, we operate primarily as a traditional, rate-regulated
electric and natural gas utility with approximately 10,400 megawatts of generating capacity. Our Illinois operations include rate-regulated electric
and natural gas transmission and distribution
businesses. Amerens merchant generation business includes several coal-" red plants and multiple natural gas-" red units with a capacity of approximately 5,500 megawatts of generation.
Ameren Missouri is the largest electric utility
in the state, while Ameren Illinois ranks as the second largest electric distributor and one of the largest natural gas distributors in Illinois.
megawatts of merchant generating capacity megawatts of Ameren Missouri
generating capacity electric and natural gas customers electric customers natural gas customers 5,500 10,400 3,300,000 2,400,000 900,000U.S. AverageU.S. Average 12.07¢10.26 ¢8.38 ¢8.38 ¢6.85 ¢10.19 ¢Ameren IllinoisAmeren Illinois Ameren Missouri Ameren Missouri Residential Rates (Cents per kilowatt-hour at June 2011)
Commercial Rates (Cents per kilowatt-hour at June 2011)Source: Summer 2011 EEI Typical Bills and Average Rates Report Capitalization (December 31, 2011) 45.6%Debt53.4%Equity1.0%Preferred Stock St. Louis Peoria Collinsville Company Headquarters Subsidiary HeadquartersElectric Service Territory Electric and Natural GasService Territory 19 4 0 7 5 0_P B_t x t.i n d d 1 9 2/2 7/1 2 1: 4 3 P M Ameren Corporation and Subsidiaries Of" cers and Directors Michael G. Mueller*Vice President, Energy Trading and
Fuel Commodities, Ameren Missouri Craig D. Nelson*Senior Vice President, Regulatory Affairs and Financial
Services, Ameren Illinois Stan E. Ogden*Vice President, Customer Service and
Metering Operations, Ameren Illinois Ronald D. Pate*Vice President, Operations and Technical Services, Ameren Illinois Joseph M. Power*Vice President, Federal Legislative and
Regulatory Affairs, Ameren Services Cleveland O. Reasoner*Vice President, Engineering, Callaway
Nuclear Plant, Ameren Missouri David J. Schepers*Vice President, Energy Delivery Technical Services, Ameren Missouri Mark J. Eacret*Vice President, Business Services and Controller, Ameren Energy Resources Scott A. Glaeser*Vice President, Gas Transmission and Supply, Ameren ServicesMary P. Heger*Vice President, Information Technology and Ameren Services Center, Ameren Services David R. Hunt*Vice President, Corporate
Communications, Ameren Services Christopher A. Iselin*Vice President, Generation, Ameren Energy Resources Stephen M. Kidwell*Vice President, Corporate Planning, Ameren Services Mark C. Lindgren*Vice President, Human Resources, Ameren Services Michael L. Menne*Vice President, Environmental Services, Ameren Services Shawn E. Schukar*Senior Vice President, Trading and
Marketing, Ameren Energy Marketing James A. Sobule*Vice President and Deputy General
Counsel, Ameren Services Bruce A. SteinkeVice President and Controller, Ameren Corporation David N. Wakeman*Vice President, Energy Delivery-
Distribution Services, Ameren MissouriDennis W. Weisenborn*Vice President, Supply Services, Ameren Services D. Scott Wiseman*Vice President, External Affairs, Ameren Illinois Warren T. Wood*Vice President, Regulatory and
Legislative Affairs, Ameren MissouriLynn M. Barnes*Vice President, Business Planning and Controller, Ameren Missouri Jerre E. BirdsongVice President and Treasurer, Ameren Corporation Mark C. Birk*Senior Vice President, Corporate
Planning and Business Risk
Management, Ameren Services S. Mark Brawley*Vice President, Internal Audit, Ameren Services Kendall D. Coyne*Vice President, Tax, Ameren Services Kevin A. DeGraw*Vice President, Enterprise Risk and
Project Management, Ameren Services Fadi M. Diya*Vice President, Nuclear Operations, Ameren MissouriThomas R. Voss Chairman, President and Chief Executive Officer, Ameren Corporation Stephen R. Wilson 1, 5 Chairman, President and Chief Executive Officer, CF Industries Holdings, Inc.Jack D. Woodard 3, 5Retired Executive Vice President and Chief Nuclear Officer, Southern Nuclear Operating Company, Inc.Dr. Gayle P. W. Jackson 4, 5President and Chief Executive Officer, Energy Global, Inc.
James C. Johnson 3, 4 General Counsel, Loop Capital Markets, LLC Steven H. Lipstein 1, 3President and Chief Executive Officer, BJC HealthCarePatrick T. Stokes 1, 3, 6 Former Chairman, Anheuser-Busch Companies, Inc.1 Member of the Finance Committee2 Member of the Audit and Risk Committee3 Member of the Human Resources Committee4 Member of the Nominating and Corporate Governance Committee5 Member of the Nuclear Oversight and Environmental Committee6 Lead DirectorStephen F. Brauer 2, 4Chairman and Chief Executive Officer, Hunter Engineering Company Catherine S. Brune 2, 5President Eastern Territory, Allstate Insurance Company Ellen M. Fitzsimmons 2, 4Senior Vice President of Law and Public Affairs, General Counsel and Corporate Secretary, CSX CorporationWalter J. Galvin 1, 2Vice Chairman, Emerson Electric Co.
Maureen A. Borkowski*
Chairman, President and Chief Executive Officer, Ameren Transmission Company Adam C. Heflin*Senior Vice President and Chief Nuclear Officer, Ameren MissouriMartin J. Lyons, Jr.Senior Vice President and Chief Financial Officer, Ameren Corporation Richard J. Mark*Senior Vice President, Customer
Operations, Ameren MissouriDaniel F. Cole*
Chairman, President and Chief Executive Officer, Ameren Services Steven R. Sullivan*
Chairman, President and Chief Executive Officer, Ameren
Energy Resources; Chairman and
President, Ameren Energy Generating;
and President and Chief Executive Officer, Ameren Energy MarketingThomas R. Voss Chairman, President and Chief Executive Officer, Ameren CorporationWarner L. Baxter*
Chairman, President and Chief Executive Officer, Ameren Missouri Scott A. Cisel*
Chairman, President and Chief Executive Officer, Ameren Illinois Michael L. Moehn*Senior Vice President, Customer
Operations, Ameren Illinois Charles D. Naslund*Senior Vice President, Generation and
Environmental Projects, Ameren Missouri Gregory L. NelsonSenior Vice President, General Counsel and Secretary, Ameren Corporation
- Officer of an Ameren Corporation subsidiary only OTHER OFFICERS BOARD OF DIRECTORS 20 EXECUTIVE LEADERSHIP TEAM 4 0 7 5 0_P B_t x t.i n d d 2 0 2/2 7/1 2 1: 4 3 P M UNITEDSTATESSECURITIESANDEXCHANGECOMMISSIONWashington,D.C.20549FORM10-K (X)AnnualreportpursuanttoSection13or15(d)oftheSecuritiesExchangeActof1934forthefiscalyearendedDecember31,2011 OR()TransitionreportpursuanttoSection13or15(d)oftheSecuritiesExchangeActof1934forthetransitionperiodfromto.
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AmerenCorporationYes()No(X)UnionElectricCompanyYes()No(X)
AmerenIllinoisCompanyYes()No(X)
AmerenEnergyGeneratingCompanyYes(X)No()Indicatebycheckmarkwhethertheregistrants:(1)havefiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequired tofilesuchreports),and(2)havebeensubjecttosuchfilingrequirementsforthepast90days.AmerenCorporationYes(X)No()UnionElectricCompanyYes(X)No()
AmerenIllinoisCompanyYes(X)No()
AmerenEnergyGeneratingCompany(1)Yes()No(X)(1)Asindicatedabove,AmerenEnergyGeneratingCompanyisnotrequiredtofilereportsundertheSecuritiesExchangeActof1934.However,AmerenEnergyGeneratingCompanyhasfiledallExchangeActreportsforthe preceding12months.Indicatebycheckmarkwhethereachregistranthassubmittedelectronicallyandpostedonitscorporatewebsite,ifany,everyInteractiveDataFilerequiredtobesubmittedandpostedpursuanttoRule405ofRegulationS-T(§232.405ofthis chapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitandpostsuch
files).AmerenCorporationYes(X)No()UnionElectricCompanyYes(X)No()
AmerenIllinoisCompanyYes(X)No()
AmerenEnergyGeneratingCompanyYes(X)No()IndicatebycheckmarkifdisclosureofdelinquentfilerspursuanttoItem405ofRegulationS-K(§229.405ofthischapter)isnotcontainedherein,andwillnotbecontained,tothebestofeachregistrantsknowledge,indefinitiveproxyor informationstatementsincorporatedbyreferenceinPartIIIofthisForm10-KoranyamendmenttothisForm10-K.AmerenCorporation(X)UnionElectricCompany()
AmerenIllinoisCompany(X)
AmerenEnergyGeneratingCompany(X)Indicatebycheckmarkwhethereachregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfilerorasmallerreportingcompany.Seedefinitionsoflargeacceleratedfiler,acceleratedfiler,andsmallerreportingcompanyin Rule12b-2oftheExchangeAct.
Large Accelerated Filer Accelerated Filer Non-accelerated Filer Smaller Reporting CompanyAmerenCorporation(X)()()()
UnionElectricCompany()()(X)()
AmerenIllinoisCompany()()(X)()
AmerenEnergyGeneratingCompany()()(X)()Indicatebycheckmarkwhethereachregistrantisashellcompany(asdefinedinRule12b-2oftheAct).AmerenCorporationYes()No(X)UnionElectricCompanyYes()No(X)
AmerenIllinoisCompanyYes()No(X)
AmerenEnergyGeneratingCompanyYes()No(X)
AsofJune30,2011,AmerenCorporationhad241,586,534sharesofits$0.01parvaluecommonstockoutstanding.Theaggregatemarketvalueofthesesharesofcommonstock(basedupontheclosingpriceofthecommonstockontheNewYork StockExchangeonthatdate)heldbynonaffiliateswas$6,967,355,641.Thesharesofcommonstockoftheotherregistrants wereheldbyaffiliatesasofJune30,2011.ThenumberofsharesoutstandingofeachregistrantsclassesofcommonstockasofJanuary31,2012,wasasfollows:AmerenCorporationCommonstock,$0.01parvaluepershare:242,634,742UnionElectricCompanyCommonstock,$5parvaluepershare,heldbyAmerenCorporation(parentcompanyoftheregistrant):
102,123,834AmerenIllinoisCompanyCommonstock,noparvalue,heldbyAmerenCorporation(parentcompanyoftheregistrant):
25,452,373AmerenEnergyGeneratingCompanyCommonstock,noparvalue,heldbyAmerenEnergyResourcesCompany,LLC(parentcompanyofthe registrantandsubsidiaryofAmeren Corporation):2,000DOCUMENTSINCORPORATEDBYREFERENCEPortionsofthedefinitiveproxystatementofAmerenCorporationandportionsofthedefinitiveinformationstatementsofUnionElectricCompanyandAmerenIllinoisCompanyforthe2012annualmeetingsofshareholdersareincorporatedby referenceintoPartIIIofthisForm10-K.OMISSIONOFCERTAININFORMATIONAmerenEnergyGeneratingCompanymeetstheconditionssetforthinGeneralInstructionI(1)(a)and(b)ofForm10-KandisthereforefilingthisformwiththereduceddisclosureformatallowedunderthatGeneralInstruction.ThiscombinedForm10-KisseparatelyfiledbyAmerenCorporation,UnionElectricCompany,AmerenIllinoisCompanyandAmerenEnergyGeneratingCompany.Eachregistrantheretoisfilingonitsownbehalfalloftheinformationcontainedin thisannualreportthatrelatestosuchregistrant.Eachregistrantheretoisnotfilinganyinformationthatdoesnotrelateto suchregistrant,andthereforemakesnorepresentationastoanysuchinformation.
TABLEOFCONTENTS PageGLOSSARYOFTERMSANDABBREVIATIONS.......................................................1Forward-lookingStatements.....................................................................4PARTIItem1.Business.........................................................................5 General......................................................................5BusinessSegments.............................................................6RatesandRegulation...........................................................6TransmissionandSupplyofElectricPower..........................................10PowerGeneration..............................................................11NaturalGasSupplyforDistribution.................................................14IndustryIssues................................................................14OperatingStatistics.............................................................15AvailableInformation...........................................................17Item1A.RiskFactors......................................................................17Item1B.UnresolvedStaffComments..........................................................24Item2.Properties........................................................................24Item3.LegalProceedings..................................................................26Item4.MineSafetyDisclosures.............................................................27ExecutiveOfficersoftheRegistrants(Item401(b)ofRegulationS-K).....................................27PARTIIItem5.MarketforRegistrantsCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquity Securities........................................................................29Item6.SelectedFinancialData...............................................................31Item7.ManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperations...........32 Overview.....................................................................32ResultsofOperations...........................................................34LiquidityandCapitalResources...................................................51 Outlook......................................................................66RegulatoryMatters.............................................................70AccountingMatters.............................................................70EffectsofInflationandChangingPrices.............................................72Item7A.QuantitativeandQualitativeDisclosuresAboutMarketRisk..................................73Item8.FinancialStatementsandSupplementaryData............................................79SelectedQuarterlyInformation....................................................168Item9.ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure..........169Item9A.ControlsandProcedures.............................................................169Item9B.OtherInformation..................................................................170PARTIIIItem10.Directors,ExecutiveOfficersandCorporateGovernance....................................170Item11.ExecutiveCompensation.............................................................171Item12.SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholder Matters..........................................................................171Item13.CertainRelationshipsandRelatedTransactionsandDirectorIndependence.....................172Item14.PrincipalAccountingFeesandServices.................................................172PARTIVItem15.ExhibitsandFinancialStatementSchedules..............................................172 SIGNATURES.................................................................................177EXHIBITINDEX...............................................................................181Thisreportcontainsforward-lookingstatementswithinthemeaningofSection21EoftheSecuritiesExchangeActof1934,asamended.Forward-lookingstatementsshouldbereadwiththecautionarystatementsandimportantfactorsincluded onpages4and5ofthisreportundertheheadingForward-lookingStatements.Forward-lookingstatementsareall statementsotherthanstatementsofhistoricalfact,includingthosestatementsthatareidentifiedbytheuseofthewords anticipates,estimates,expects,intends,plans,predicts,projects,andsimilarexpressions.
GLOSSARYOFTERMSANDABBREVIATIONSWeusethewordsour,weoruswithrespecttocertaininformationthatrelatestoallAmerenCompanies,asdefinedbelow.Whenappropriate,subsidiariesofAmerenarenamedspecificallyaswediscusstheirvariousbusinessactivities.2007IllinoisElectricSettlementAgreement
-AcomprehensivesettlementofissuesinIllinoisarisingoutof theendoftenyearsoffrozenelectricrates,effective January2,2007.Thesettlement,whichbecameeffectivein 2007,wasdesignedtoavoidnewraterollbackandfreeze legislationandlegislationthatwouldimposeataxon electricgenerationinIllinois.Thesettlementaddressedthe issueofpowerprocurement,anditincludeda comprehensiveratereliefandcustomerassistance
program.
2010CreditAgreements-The2010GencoCreditAgreement,the2010IllinoisCreditAgreement,andthe 2010MissouriCreditAgreement,collectively.
2010GencoCreditAgreement-AmerensandGencos$500millionmultiyearseniorunsecuredrevolvingcredit facility,whichexpiresonSeptember10,2013.
2010IllinoisCreditAgreement-AmerensandAmerenIllinois$800millionmultiyearseniorunsecuredcredit agreement,whichexpiresonSeptember10,2013.
2010MissouriCreditAgreement-AmerensandAmerenMissouris$800millionmultiyearseniorunsecured revolvingcreditfacility,whichexpiresonSeptember10, 2013.
AER-AmerenEnergyResourcesCompany,LLC,anAmerenCorporationsubsidiarythatconsistsofnon-rate-regulatedoperations,includingGenco,AERG,Marketing CompanyandMedinaValley.TheMedinaValleyenergy centerwassoldinFebruary2012.OnOctober1,2010, AERGstockwasdistributedtoAmeren,whichthen contributedittoAER,therebymakingAERGasubsidiaryof
AER.
AERG-AmerenEnergyResourcesGeneratingCompany,aCILCOsubsidiaryuntilOctober1,2010,thatoperatesa merchantelectricgenerationbusinessinIllinois.On October1,2010,AERGstockwasdistributedtoAmeren andsubsequentlycontributedbyAmerentoAER,which resultedinAERGbecomingasubsidiaryofAER.
AFS-AmerenEnergyFuelsandServicesCompany,anAERsubsidiarythatprocuredfuelandnaturalgasandmanaged therelatedrisksfortheAmerenCompaniespriorto January1,2011.EffectiveJanuary1,2011,thefunctions previouslyperformedbyAFSwereassumedbytheAmeren Missouri,AmerenIllinoisandMerchantGeneration businesssegments.
Ameren-AmerenCorporationanditssubsidiariesonaconsolidatedbasis.Inreferencestofinancingactivities, acquisitionactivities,orliquidityarrangements,Amerenis definedasAmerenCorporation,theparent.
AmerenCompanies-TheindividualregistrantswithintheAmerenconsolidatedgroup.
AmerenIllinoisorAIC-AmerenIllinoisCompany,anAmerenCorporationsubsidiarythatoperatesarate-regulatedelectricandnaturalgastransmissionand distributionbusinessinIllinois,doingbusinessasAmerenIllinois.Thisbusinessconsistsofthecombinedrate-regulatedelectricandnaturalgastransmissionand distributionbusinessesoperatedbyCIPS,CILCOandIP beforetheAmerenIllinoisMerger.ReferencestoAmeren IllinoispriortotheAmerenIllinoisMergerrefercollectively totherate-regulatedelectricandnaturalgastransmission anddistributionbusinessesofCIPS,CILCOandIP.
ImmediatelyaftertheAmerenIllinoisMerger,Ameren IllinoisdistributedthecommonstockofAERGtoAmeren Corporation.AERGsoperatingresultsandcashflowswere presentedasdiscontinuedoperationsinAmerenIllinois financialstatements.
AmerenIllinoisMerger-OnOctober1,2010,CILCOandIPmergedwithandintoCIPS,withthesurviving corporationrenamedAmerenIllinoisCompany.
AmerenIllinoisRegulatedSegment-AfinancialreportingsegmentconsistingofAmerenIllinoisrate-regulated
businesses.
AmerenMissouriorAMO-UnionElectricCompany,anAmerenCorporationsubsidiarythatoperatesarate-regulatedelectricgeneration,transmissionanddistribution business,andarate-regulatednaturalgastransmissionand distributionbusinessinMissouri,doingbusinessas AmerenMissouri.AmerenMissouriisalsodefinedasa financialreportingsegmentconsistingofUnionElectric Companysrate-regulatedbusinesses.
AmerenServices-AmerenServicesCompany,anAmerenCorporationsubsidiarythatprovidessupportservicesto Amerenanditssubsidiaries.
AMIL-TheMISObalancingauthorityareaoperatedbyAmeren,whichincludestheloadofAmerenIllinoisandthe generatingassetsofGenco(excludingEEIandGencos ElginCTfacility)andAERG.
AMMO-TheMISObalancingauthorityareaoperatedbyAmeren,whichincludestheloadandgeneratingassetsof AmerenMissouri.
ARO-Assetretirementobligations.
ATX-AmerenTransmissionCompany,anAmerenCorporationsubsidiarydedicatedtoelectrictransmission infrastructureinvestment.
ATXI-AmerenTransmissionCompanyofIllinois,anAmerenCorporationsubsidiarythatisengagedinthe constructionandoperationofelectrictransmissionassets inIllinois.
Baseload-Theminimumamountofelectricpowerdeliveredorrequiredoveragivenperiodoftimeatasteady
rate.
Btu-Britishthermalunit,astandardunitformeasuringthequantityofheatenergyrequiredtoraisethetemperatureof onepoundofwaterbyonedegreeFahrenheit.
CAIR-CleanAirInterstateRule.Capacityfactor-Apercentagemeasurethatindicateshowmuchofanelectricpowergeneratingunitscapacitywas usedduringaspecificperiod.
1 CCR-Coalcombustionresiduals.
CILCO-CentralIllinoisLightCompany,aformerAmerenCorporationsubsidiarythatoperatedarate-regulated electrictransmissionanddistributionbusiness,amerchant electricgenerationbusinessthroughAERG,andarate-regulatednaturalgastransmissionanddistribution business,allinIllinois,beforetheAmerenIllinoisMerger.
CILCOownedallofthecommonstockofAERGand includedAERGwithinitsconsolidatedfinancialstatements.
ImmediatelyaftertheAmerenIllinoisMergerin2010, AmerenIllinoisdistributedthecommonstockofAERGto AmerenCorporation.AERGwastreatedasadiscontinued operationwithinAmerenIllinoisfinancialstatements.
CILCORP-CILCORPInc.,aformerAmerenCorporationsubsidiarythatoperatedasaholdingcompanyforCILCO anditsmerchantgenerationsubsidiary.OnMarch4,2010, CILCORPmergedwithandintoAmeren.
CIPS-CentralIllinoisPublicServiceCompany,anAmerenCorporationsubsidiary,renamedAmerenIllinoisCompany attheeffectivedateoftheAmerenIllinoisMerger,that operatesarate-regulatedelectricandnaturalgas transmissionanddistributionbusiness,allinIllinois.
CO 2-Carbondioxide.
COLA-Combinednuclearplantconstructionandoperatinglicenseapplication.
ColeCountyCircuitCourt-CircuitCourtofColeCounty, Missouri.
Coolingdegree-days-Thesummationofpositivedifferencesbetweenthemeandailytemperatureanda 65-degreeFahrenheitbase.Thisstatisticisusefulfor estimatingelectricitydemandbyresidentialandcommercial customersforsummercooling.
CSAPR-Cross-StateAirPollutionRule.
CT-Combustionturbineelectricgenerationequipmentusedprimarilyforpeakingcapacity.
DOE-DepartmentofEnergy,aUnitedStatesgovernment agency.
DRPlus-AmerenCorporationsdividendreinvestmentanddirectstockpurchaseplan.
Dth(dekatherm)-OnemillionBtusofnaturalgas.
EEI-ElectricEnergy,Inc.,an80%-ownedGencosubsidiarythatoperatesmerchantelectricgenerationfacilitiesand FERC-regulatedtransmissionfacilitiesinIllinois.Effective January1,2010,inaninternalreorganization,AER contributedits80%ownershipinterestinEEItoits subsidiary,Genco.Theremaining20%ownershipinterest isownedbyKentuckyUtilitiesCompany,anonaffiliated
entity.
EPA-EnvironmentalProtectionAgency,aU.S.government agency.
Equivalentavailabilityfactor-Ameasurethatindicatesthepercentageoftimeanelectricpowergeneratingunit wasavailableforserviceduringaperiod.
ERISA-EmployeeRetirementIncomeSecurityActof1974,asamended.
ExchangeAct-SecuritiesExchangeActof1934,as amended.
FAC-AfuelandpurchasedpowercostrecoverymechanismthatallowsAmerenMissouritorecover,throughcustomerrates,95%ofchangesinfuel(coal,coaltransportation,naturalgasforgeneration,andnuclear),
emissionallowancesandpurchasedpowercosts,netof off-systemrevenues,includingMISOcostsandrevenues, greaterorlessthantheamountsetinbaserates,withouta traditionalrateproceeding.
FASB-FinancialAccountingStandardsBoard,arulemakingorganizationthatestablishesfinancial accountingandreportingstandardsintheUnitedStates.
FERC-TheFederalEnergyRegulatoryCommission,aUnitedStatesgovernmentagency.
Fitch-FitchRatings,acreditratingagency.
FTRs-Financialtransmissionrights,financialinstrumentsthatentitletheholdertopayorreceivecompensationfor certaincongestion-relatedtransmissionchargesbetween twodesignatedpoints.
Fuelco-FuelcoLLC,alimitedliabilitycompanythatprovidesnuclearfuelmanagementandservicestoits members.ThemembersareAmerenMissouri,Luminant, andPacificGasandElectricCompany.
GAAP-GenerallyacceptedaccountingprinciplesintheUnitedStatesofAmerica.
Genco-AmerenEnergyGeneratingCompany,anAERsubsidiarythatoperatesamerchantelectricgeneration businessinIllinoisandholdsan80%ownershipinterestin
EEI.
Gigawatthour-Onethousandmegawatthours.Heatingdegree-days-Thesummationofnegativedifferencesbetweenthemeandailytemperatureanda65-degreeFahrenheitbase.Thisstatisticisusefulasan indicatorofdemandforelectricityandnaturalgasforwinter spaceheatingbyresidentialandcommercialcustomers.
IBEW-InternationalBrotherhoodofElectricalWorkers,alaborunion.
ICC-IllinoisCommerceCommission,astateagencythatregulatesIllinoisutilitybusinesses,includingATXIand AmerenIllinois.
IEIMA-IllinoisEnergyInfrastructureModernizationAct,anIllinoislawthatestablishedaperformance-basedformula processfordeterminingelectricdeliveryservicerates.
AmerenIllinoiselectedtoparticipateinthisregulatory frameworkin2012,whichwillrequireittomake incrementalcapitalexpenditurestomodernizeitselectric distributionsystemoveraten-yearperiodbeginningin 2012,tomeetperformancestandards,andtocreatejobsin Illinois,amongotherthings.
IllinoisCustomerChoiceLaw-IllinoisElectricServiceCustomerChoiceandRateReliefLawof1997,whichwas designedtointroducecompetitionintotheretailsupplyof electricenergyinIllinois.
IllinoisEPA-IllinoisEnvironmentalProtectionAgency,astategovernmentagency.
IP-IllinoisPowerCompany,aformerAmerenCorporationsubsidiarythatoperatedarate-regulatedelectricandnatural gastransmissionanddistributionbusiness,allinIllinois, beforetheAmerenIllinoisMerger.
IPA-IllinoisPowerAgency,astategovernmentagencythathasbroadauthoritytoassistintheprocurementof electricpowerforresidentialandnonresidentialcustomers.
2 ISRS-Infrastructuresystemreplacementsurcharge,whichisacostrecoverymechanismthatallowsAmeren Missouritorecovergasinfrastructurereplacementcosts fromutilitycustomerswithoutatraditionalrate
proceeding.
IUOE-InternationalUnionofOperatingEngineers,alabor union.
Kilowatthour-Ameasureofelectricityconsumptionequivalenttotheuseof1,000wattsofpoweroverone
hour.
LIUNA-LaborersInternationalUnionofNorthAmerica,alaborunion.
MarketingCompany-AmerenEnergyMarketingCompany,anAERsubsidiarythatmarketspowerfor Genco,AERG,EEIandMedinaValley.
MATS-MercuryandAirToxicsStandards,issuedbytheEPAonDecember21,2011,whichlimitmercury,acid gasesandothertoxicpollutionfrompowerplants.
MedinaValley-AmerenEnergyMedinaValleyCogenLLC,anAERsubsidiary,whichownsa40-megawatt naturalgas-firedelectricenergycenter.Thisenergycenter wassoldinFebruary2012.
MEEIA-MissouriEnergyEfficiencyInvestmentAct,aMissourilawthatallowselectricutilitiestorecovercosts relatedtoMoPSC-approvedenergyefficiencyprograms.
Megawatthour-Onethousandkilowatthours.MerchantGeneration-AfinancialreportingsegmentconsistingprimarilyoftheoperationsoractivitiesofAER, includingGenco,AERG,MedinaValleyandMarketing
Company.
MGP-Manufacturedgasplant.
MIEC-MissouriIndustrialEnergyConsumers.
MISO-MidwestIndependentTransmissionSystemOperator,Inc.,anRTO.
MISOEnergyandOperatingReservesMarket-Amarketthatusesmarket-basedpricing,whichtakesintoaccount transmissioncongestionandlinelosses,tocompensate marketparticipantsforpowerandancillaryservices.
MissouriEnvironmentalAuthority-EnvironmentalImprovementandEnergyResourcesAuthorityofthestate ofMissouri,agovernmentalbodyauthorizedtofinance environmentalprojectsbyissuingtax-exemptbondsand
notes.
Mmbtu-OnemillionBtus.Moneypool-BorrowingagreementsamongAmerenanditssubsidiariestocoordinateandprovideforcertain short-termcashandworkingcapitalrequirements.
Separatemoneypoolsmaintainedforrate-regulatedand non-rate-regulatedbusinessesarereferredtoastheutility moneypoolandthenon-state-regulatedsubsidiarymoney pool,respectively.
Moodys-MoodysInvestorsServiceInc.,acreditrating agency.
MoOPC-MissouriOfficeofPublicCounsel.
MoPSC-MissouriPublicServiceCommission,astateagencythatregulatesMissouriutilitybusinessesincluding AmerenMissouri.
MPS-Multi-PollutantStandard,anagreement,asamended,reachedin2006amongGenco,AERG,EEIand theIllinoisEPA,whichwascodifiedinIllinois environmentalregulations.
MTM-Mark-to-market.
MW-Megawatt.Nativeload-End-useretailcustomerswhomweareobligatedtoservebystatute,franchise,contract,orother regulatoryrequirement.
NERC-NorthAmericanElectricReliabilityCorporation.
NO 2-Nitrogendioxide.
NO x-Nitrogenoxide.
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-systemrevenues-Revenuesfromotherthannativeloadsales,includingwholesalesalesbeginningwiththe effectivedateoftheMoPSCs2011electricrateorder.
OTC-Over-the-counter.
PGA-PurchasedGasAdjustmenttariffs,whichpermitprudentlyincurrednaturalgascoststoberecovered directlyfromutilitycustomerswithoutatraditionalrate
proceeding.
PJM-PJMInterconnectionLLC.PUHCA2005-ThePublicUtilityHoldingCompanyActof2005,enactedaspartoftheEnergyPolicyActof2005, effectiveFebruary8,2006.
Regulatorylag-Theeffectofadjustmentstoretailelectricandnaturalgasratesbeingbasedonhistoriccost andrevenuelevels.Rateincreaserequestscantakeupto 11monthstobeacteduponbytheMoPSCandtheICC.
Asaresult,revenueincreasesauthorizedbyregulators willlagbehindchangingcostsandrevenueswhenbased onhistoricalperiods.
RFP-Requestforproposal.
RTO-RegionalTransmissionOrganization.
S&P-Standard&PoorsRatingsServices,acreditrating agency.
SEC-SecuritiesandExchangeCommission,aUnitedStatesgovernmentagency.
3 SERC-SERCReliabilityCorporation,oneoftheregionalelectricreliabilitycouncilsorganizedforcoordinatingthe planningandoperationofthenationsbulkpowersupply.
SO 2-Sulfurdioxide.
UA-UnitedAssociationofPlumbersandPipefitters,alaborunion.
UGSOA-UnitedGovernmentSecurityOfficersofAmerica,alaborunion.FORWARD-LOOKINGSTATEMENTSStatementsinthisreportnotbasedonhistoricalfactsareconsideredforward-lookingand,accordingly, involverisksanduncertaintiesthatcouldcauseactual resultstodiffermateriallyfromthosediscussed.Although suchforward-lookingstatementshavebeenmadeingood faithandarebasedonreasonableassumptions,thereis noassurancethattheexpectedresultswillbeachieved.
Thesestatementsinclude(withoutlimitation)statements astofutureexpectations,beliefs,plans,strategies, objectives,events,conditions,andfinancialperformance.
Inconnectionwiththesafeharborprovisionsofthe PrivateSecuritiesLitigationReformActof1995,weare providingthiscautionarystatementtoidentifyimportant factorsthatcouldcauseactualresultstodiffermaterially fromthoseanticipated.Thefollowingfactors,inaddition tothosediscussedunderRiskFactorsandelsewherein thisreportandinourotherfilingswiththeSEC,could causeactualresultstodiffermateriallyfrommanagement expectationssuggestedinsuchforward-looking
statements:
regulatory,judicial,orlegislativeactions,includingchangesinregulatorypoliciesandratemaking determinations,suchastheoutcomeofAmeren MissourisandAmerenIllinoiselectricratecases filedin2012;theAmerenIllinoisnaturalgasrate orderissuedin2012;thecourtappealsrelatedto AmerenMissouris2010and2011electricrate orders;AmerenIllinois2010electricandnaturalgas rateorder;AmerenMissourisFACprudencereview; andfutureregulatory,judicial,orlegislativeactions thatseektochangeregulatoryrecoverymechanisms, suchastherecentpassageoflegislationprovidingfor formularatemakinginIllinois; theeffectofAmerenIllinoisparticipatinginanewperformance-basedformularatemakingprocess undertheIEIMA,therelatedfinancialcommitments requiredbytheIEIMAandtheresultinguncertain impactonthefinancialcondition,resultsof operationsandliquidityofAmerenIllinois; theeffectsof,orchangesto,theIllinoispowerprocurementprocess; changesinlawsandothergovernmentalactions,includingmonetary,fiscal,andtaxpolicies; changesinlawsorregulationsthatadverselyaffecttheabilityofelectricdistributioncompaniesandother purchasersofwholesaleelectricitytopaytheir suppliers,includingAmerenMissouriandMarketing
Company;theeffectsofincreasedcompetitioninthefuturedueto,amongotherthings,deregulationofcertain aspectsofourbusinessatboththestateandfederal levels,andtheimplementationofderegulation,such asoccurredwhentheelectricratefreezeandpower supplycontractsexpiredinIllinoisattheendof2006; theeffectsondemandforourservicesresultingfromtechnologicaladvances,includingadvancesinenergy efficiencyanddistributedgenerationsources,which generateelectricityatthesiteofconsumption; increasingcapitalexpenditureandoperatingexpenserequirementsandourabilitytorecoverthesecosts throughourregulatoryframeworks; thecostandavailabilityoffuelsuchascoal,naturalgas,andenricheduraniumusedtoproduceelectricity; thecostandavailabilityofpurchasedpowerandnatural gasfordistribution;andthelevelandvolatilityoffuture marketpricesforsuchcommodities,includingthe abilitytorecoverthecostsforsuchcommodities; theeffectivenessofourriskmanagementstrategiesandtheuseoffinancialandderivativeinstruments; thelevelandvolatilityoffuturepricesforpowerinthe Midwest;thedevelopmentofacapacitymarketwithinMISO; businessandeconomicconditions,includingtheirimpactoninterestrates,baddebtexpense,and demandforourproducts; disruptionsofthecapitalmarketsorothereventsthatmaketheAmerenCompaniesaccesstonecessary capital,includingshort-termcreditandliquidity, impossible,moredifficult,ormorecostly; ourassessmentofourliquidity; theimpactoftheadoptionofnewaccountingguidanceandtheapplicationofappropriatetechnical accountingrulesandguidance; actionsofcreditratingagenciesandtheeffectsofsuchactions; theimpactofweatherconditionsandothernaturalphenomenaonusandourcustomers; theimpactofsystemoutages; generation,transmission,anddistributionassetconstruction,installation,performance,andcost
recovery;theeffectsofourincreasinginvestmentinelectrictransmissionprojectsanduncertaintyastowhether wewillachieveourexpectedreturnsinatimely fashion,ifatall; theextenttowhichAmerenMissouriprevailsinitsclaimsagainstinsurersinconnectionwithitsTaum Saukpumped-storagehydroelectricenergycenter
incident;4 theextenttowhichAmerenMissouriispermittedbyitsregulatorstorecoverinratestheinvestmentsitmade inconnectionwithaproposedsecondunitatits Callawayenergycenter; impairmentsoflong-livedassets,intangibleassets,or goodwill;operationofAmerenMissourisCallawayenergycenter,includingplannedandunplannedoutages, decommissioning,costsandpotentialincreasedcosts asaresultofnuclear-relateddevelopmentsinJapanin
2011;theeffectsofstrategicinitiatives,includingmergers,acquisitionsanddivestitures; theimpactofcurrentenvironmentalregulationsonutilitiesandpowergeneratingcompaniesandnew,more stringentorchangingrequirements,includingthose relatedtogreenhousegases,otheremissions,cooling waterintakestructures,CCR,andenergyefficiency,that areenactedovertimeandthatcouldlimitorterminatetheoperationofcertainofourgeneratingunits,increaseourcosts,resultinanimpairmentofourassets,reduce ourcustomersdemandforelectricityornaturalgas,or otherwisehaveanegativefinancialeffect; theimpactofcomplyingwithrenewableenergyportfoliorequirementsinMissouri; labordisputes,workforcereductions,futurewageandemployeebenefitscosts,includingchangesindiscount ratesandreturnsonbenefitplanassets; theinabilityofourcounterpartiesandaffiliatestomeettheirobligationswithrespecttocontracts,credit facilities,andfinancialinstruments; thecostandavailabilityoftransmissioncapacityfortheenergygeneratedbytheAmerenCompaniesenergy centersorrequiredtosatisfyenergysalesmadebythe AmerenCompanies; legalandadministrativeproceedings;and actsofsabotage,war,terrorism,cybersecurityattacksorintentionallydisruptiveacts.Giventheseuncertainties,unduerelianceshouldnotbeplacedontheseforward-lookingstatements.Excepttotheextentrequiredbythefederalsecuritieslaws,weundertakenoobligationtoupdateorrevisepubliclyanyforward-lookingstatements toreflectnewinformationorfutureevents.PARTIITEM1.BUSINESS.
GENERALAmeren,headquarteredinSt.Louis,Missouri,isapublicutilityholdingcompanyunderPUHCA2005 administeredbyFERC.Amerenwasformedin1997bythe mergerofAmerenMissouriandCIPSCOInc.Ameren acquiredCILCORPin2003andIPin2004.Amerensprimary assetsarethecommonstockofitssubsidiaries,including AmerenMissouri,AmerenIllinoisandAER.Amerens subsidiariesareseparate,independentlegalentitieswith separatebusinesses,assets,andliabilities.Thesesubsidiaries operate,asthecasemaybe,rate-regulatedelectric generation,transmission,anddistributionbusinesses,rate-regulatednaturalgastransmissionanddistribution businesses,andmerchantgenerationbusinessesinMissouri andIllinois.DividendsonAmerenscommonstockandthe paymentofotherexpensesbyAmerendependon distributionsmadetoitbyitssubsidiaries.Belowisa summarydescriptionofAmerenMissouri,AmerenIllinois andAER.Amoredetaileddescriptioncanbefoundin Note1-SummaryofSignificantAccountingPoliciesunder PartII,Item8,ofthisreport.
AmerenMissourioperatesarate-regulatedelectricgeneration,transmissionanddistributionbusiness,and arate-regulatednaturalgastransmissionand distributionbusinessinMissouri.
AmerenIllinoisoperatesarate-regulatedelectricandnaturalgastransmissionanddistributionbusinessin
Illinois.AERconsistsofnon-rate-regulatedoperations,includingGenco,AERG,MarketingCompanyand MedinaValley(throughFebruary2012).Genco operatesamerchantelectricgenerationbusinessin Illinoisandholdsan80%ownershipinterestinEEI.ThefollowingtablepresentsourtotalemployeesatDecember31,2011:
Ameren (a)......................................
9,323AmerenMissouri
.................................
4,333AmerenIllinois
..................................
2,793 Genco.........................................618(a)TotalforAmerenincludesAmerenregistrantandnonregistrant subsidiaries.AsofJanuary1,2012,theIBEW,theIUOE,theLIUNA,andtheUAlaborunionscollectivelyrepresentedabout58%
ofAmerenstotalemployees.Theyrepresented63%ofthe employeesatAmerenMissouri,65%atAmerenIllinois,and 67%atGenco.Thecollectivebargainingagreementshave three-tofive-yearterms,andexpirebetween2012and 2016.Severalcollectivebargainingagreementsbetween AmerensubsidiariesandtheIBEW,coveringapproximately 3,500employees,expireduring2012.Additionally, employeesprovidingsecurityattheCallawayenergycenter electedtoorganizeundertheUGSOAinAugust2011.
5 NegotiationsforacollectivebargainingagreementwiththeseemployeesbeganinDecember2011andareongoing.Foradditionalinformationaboutthedevelopmentofourbusinesses,ourbusinessoperations,andfactors affectingouroperationsandfinancialposition,see ManagementsDiscussionandAnalysisofFinancial ConditionandResultsofOperationsunderPartII,Item7, ofthisreportandNote1-SummaryofSignificant AccountingPoliciesunderPartII,Item8,ofthisreport.BUSINESSSEGMENTSAmerenhasthreereportablesegments:AmerenMissouri,AmerenIllinois,andMerchantGeneration.See Note18-SegmentInformationunderPartII,Item8,ofthis reportforadditionalinformationonreportingsegments.RATESANDREGULATION RatesTheratesthatAmerenMissouriandAmerenIllinoisareallowedtochargefortheirutilityservicessignificantly influencetheresultsofoperations,financialposition,and liquidityofthesecompaniesandAmeren.Theelectricand naturalgasutilityindustryishighlyregulated.Theutility rateschargedtoAmerenMissouriandAmerenIllinois customersaredetermined,inlargepart,bygovernmental entities,includingtheMoPSC,theICC,andFERC.Decisions bytheseentitiesareinfluencedbymanyfactors,including thecostofprovidingservice,theprudencyofexpenditures, thequalityofservice,regulatorystaffknowledgeand experience,economicconditions,publicpolicy,andsocial andpoliticalviews.Decisionsmadebythesegovernmental entitiesregardingratesarelargelyoutsideofAmeren MissourisandAmerenIllinoiscontrol.Thesedecisions,as wellastheregulatorylaginvolvedinfilingandgettingnew ratesapproved,couldhaveamaterialimpactontheresults ofoperations,financialposition,andliquidityofAmeren, AmerenMissouriandAmerenIllinois.Rateordersarealso subjecttoappeal,whichcreatesadditionaluncertaintyasto theratesAmerenMissouriandAmerenIllinoisare ultimatelyallowedtochargefortheirservices.Beginningin 2012,theeffectofregulatorylagonAmerenIllinoiselectric distributionbusinessisexpectedtobemitigatedthrough theuseoftheformularatemakingregulatoryframework establishedundertheIEIMA.TheICCregulatesratesandothermattersforAmerenIllinoisandATXI.TheMoPSCregulatesratesandother mattersforAmerenMissouri.TheFERCregulatesAmeren Missouri,AmerenIllinois,GencoandATXIastotheirability tochargemarket-basedratesforthesaleandtransmissionofenergyininterstatecommerceandvariousothermattersdiscussedbelowunderGeneralRegulatoryMatters.About49%ofAmerenselectricand16%ofitsnaturalgasoperatingrevenuesweresubjecttoregulationbythe MoPSCintheyearendedDecember31,2011.About30%
ofAmerenselectricand84%ofitsnaturalgasoperatingrevenuesweresubjecttoregulationbytheICCintheyearendedDecember31,2011.WholesalerevenuesforAmeren Missouri,AmerenIllinois,GencoandAERGaresubjectto FERCregulation,butnotsubjecttodirectMoPSCorICC
regulation.AmerenMissouri ElectricAbout99%ofAmerenMissouriselectricoperatingrevenuesweresubjecttoregulationbytheMoPSCinthe yearendedDecember31,2011withtheremaindersubject toFERCregulation.InJuly2011,theMoPSCissuedanorderapprovinganincreaseforAmerenMissouriinannualrevenuesfor electricserviceof$173million,including$52million relatedtoanincreaseinnormalizednetfuelcostsabovethe netfuelcostsincludedinbaseratespreviouslyauthorized bytheMoPSCinitsMay2010electricrateorder.The revenueincreasewasbasedona10.2%returnonequity,a capitalstructurecomposedof52.2%commonequity,anda ratebaseof$6.6billion.Theratechangesbecameeffective onJuly31,2011.TheMoPSCorderapprovedthecontinued useofAmerenMissourisvegetationmanagementand infrastructurecosttracker,pensionandpostretirement benefitcosttracker,andFACatthecurrent95%sharing level.TheMoPSCordershortenedtheFACrecoveryand refundperiodfrom12monthstoeightmonths.
Additionally,theMoPSCorderprovidedforatracking mechanismforuncertainincometaxpositions.InFebruary2012,AmerenMissourifiledarequestwiththeMoPSCtoincreaseitsannualrevenuesforelectric serviceby$376million.Includedinthisrequestedincrease wasa$103millionincreaseinnormalizednetfuelcosts abovethenetfuelcostsincludedinbaseratespreviously authorizedbytheMoPSCinitsJuly2011electricrate order.Absentinitiationofthisgeneralrateproceeding,95%
ofthisamountwouldhavebeenreflectedinrate adjustmentsimplementedunderAmerenMissourisFAC.
Therequestalsoincludedrecoveryofthecostsassociated withenergyefficiencyprogramsundertheMEEIA,including energyefficiencyinvestments,astormcosttracking mechanism,plant-in-serviceaccountingtreatment,and recoveryofothercostsincurredtoprovidesystemwide reliabilityimprovementsforcustomers,amongotheritems.
Theelectricrateincreaserequestwasbasedona10.75%
returnonequity,acapitalstructurecomposedof52%
commonequity,anaggregateelectricratebaseof
$6.8billion,andatestyearendedSeptember30,2011, withcertainproformaadjustmentsexpectedthroughthe anticipatedtrue-updateofJuly31,2012.Adecisionbythe MoPSCinthisproceedingisexpectedinDecember2012.FERCregulatestherateschargedandthetermsandconditionsforelectrictransmissionservices.EachRTO separatelyfilesaregionaltransmissiontariffforapprovalby FERC.AlltransmissionservicewithinthatRTOisthen 6
subjectedtothattariff.AsamemberofMISO,AmerenMissouristransmissionrateiscalculatedinaccordance withtheMISOOATT.Thetransmissionrateisupdatedin Juneofeachyear;itisbasedonAmerenMissourisfilings withFERC.ThisrateisnotdirectlychargedtoMissouri retailcustomers,becauseinMissouritheMoPSCincludes transmission-relatedcostsinsettingbundledretailrates.NaturalGasAllofAmerenMissourisnaturalgasoperatingrevenuesweresubjecttoregulationbytheMoPSCinthe yearendedDecember31,2011.InJanuary2011,the MoPSCapprovedastipulationandagreementthatallowed AmerenMissouritoincreaseannualnaturalgasrevenues by$9million.Thenewratesbecameeffectiveon February20,2011.Aspartofthestipulationand agreement,AmerenMissouriagreednottofileaseparate naturalgasrateincreaserequestbeforeDecember31, 2012;however,AmerenMissouricanfileacombined naturalgasandelectricratecasebeforethatdate.Further, thisagreementdoesnotpreventAmerenMissourifrom filingtorecoverinfrastructurereplacementcoststhrough anISRSduringthismoratorium.Thereturnonequitytobe usedbyAmerenMissouriforpurposesoftheISRStariff filingis10%.Ifcertaincriteriaaremet,AmerenMissourisnaturalgasratesmaybeadjustedwithoutatraditionalrate proceeding.PGAclausespermitprudentlyincurrednatural gascoststobepasseddirectlytotheconsumer.TheISRS alsopermitsprudentlyincurrednaturalgasinfrastructure replacementcoststobepasseddirectlytotheconsumer.ForadditionalinformationonMissouriratematters,includingAmerenMissourispendingelectricratecase,and AmerenMissouris2009,2010and2011electricrate ordersandrelatedcourtappealsandregulatory proceedings,seeResultsofOperationsandOutlookin ManagementsDiscussionandAnalysisofFinancial ConditionandResultsofOperationsunderPartII,Item7, QuantitativeandQualitativeDisclosuresAboutMarketRisk underPartII,Item7A,andNote2-RateandRegulatory Matters,andNote15-CommitmentsandContingencies underPartII,Item8,ofthisreport.AmerenIllinois ElectricAbout99%ofAmerenIllinoiselectricoperatingrevenuesweresubjecttoregulationbytheICCintheyear endedDecember31,2011withtheremaindersubjectto FERCregulation.UndertheIllinoisCustomerChoiceLaw,allelectriccustomersinIllinoismaychoosetheirownelectricenergy provider.However,AmerenIllinoisisrequiredtoserveas theprovideroflastresort(POLR)forelectriccustomers withinitsterritorywhohavenotchosenanalternativeretailelectricsupplier.AmerenIllinoisobligationtoprovidePOLRelectricservicevariesbycustomersize.Ameren Illinoisisnotrequiredtoofferfixed-pricedelectricservice tocustomerswithelectricdemandsof400kilowattsor greater,asthemarketforservicetothisgroupof customershasbeendeclaredcompetitive.Powerand relatedprocurementcostsincurredbyAmerenIllinoisare passeddirectlytoitscustomersthroughacostrecovery
mechanism.InOctober2011,theIEIMAwasenactedintolawandbecameeffectiveimmediately.Certainamendmentstothe IEIMAbecameeffectiveonDecember30,2011.On January3,2012,AmerenIllinoiselectedtoparticipateinthe performance-basedformularatemakingprocessestablished pursuanttotheIEIMAbyfilinginitialperformance-based formularateswiththeICC.Theinitialfiling,basedon2010 recoverablecostsandexpectednetplantadditionsfor2011 and2012,willresultinnewelectricdeliveryserviceratesin October2012.PendingICCapproval,theinitialfilingwill resultinadecreaseinAmerenIllinoisrevenuesforelectric deliveryserviceof$19million,onanannualizedbasis.
AmerenIllinoisanticipatesmakinganupdatefilingby May1,2012,basedon2011costsandexpectednetplant additionsfor2012,thatwouldresultinnewelectricdelivery serviceratesonJanuary1,2013.Bychoosingtoopt-in,AmerenIllinoiswillparticipateinaperformance-basedformulaprocessfordetermining ratesthatwillprovidefortherecoveryofactualcostsof electricdeliveryservicethatareprudentlyincurred,reflect theutilitysactualregulatedcapitalstructureandincludea formulaforcalculatingthereturnonequitycomponentof thecostofcapital.Theequitycomponentoftheformula ratewillbeequaltotheaveragefortheapplicablecalendar yearofthemonthlyaverageyieldsof30-yearUnitedStates treasurybondsplus590basispointsfor2012and580 basispointsthereafter.AmerenIllinoisactualreturnon equityrelatingtoelectricdeliveryservicewillbesubjecttoa collaradjustmentonearningsinexcessof50basispoints aboveorbelowitsallowedreturn.Beginningin2012,thelawprovidesforanannualreconciliationofrevenuestocostsprudentlyandreasonablyincurred.Thisannualrevenuereconciliationalongwiththecollaradjustment,ifnecessary,willbecollectedfromorrefundedtocustomersinasubsequentyear.AmerenIllinoiswillalsobesubjecttofiveperformancestandardsundertheIEIMAwherebythefailuretoachievethe standardswillresultinareductioninitsallowedreturnon equitycalculatedundertheformula.Theperformance standardsincludeimprovementsinservicereliabilityto reduceboththefrequencyanddurationofoutages, improvementsincustomersatisfactionscores,reductionin thenumberofestimatedbills,andareductioninuncollectible accountsexpense.TheIEIMAprovidesforreturnonequity penaltiestotalingupto30basispointsin2013through2015, 34basispointsin2016through2018and38basispointsin 2019through2022iftheperformancestandardsarenotmet.
Theformularatemakingprocessiseffectiveuntiltheendof 2017,butcouldbeextendedbytheIllinoisGeneralAssembly 7
foranadditionalfiveyears.Theformularatemakingprocesswouldalsoterminateiftheaverageresidentialrateincreases bymorethan2.5%annuallyfromJune2011throughMay
2014.Between2012and2021,AmerenIllinoiswillberequiredtoinvest$625millionincapitalexpenditures incrementaltoAmerenIllinoisaverageelectricdelivery capitalexpendituresforcalendaryears2008through2010 tomodernizeitsdistributionsystem.Suchinvestmentsare expectedtoencourageeconomicdevelopmentandcreate anestimated450additionaljobswithinIllinois.Ameren Illinoisissubjecttomonetarypenaltiesif450additional jobsarenotcreatedduringthepeakprogramyear.Also, AmerenIllinoiswillberequiredtocontribute$1million annuallyforcertainnonrecoverablecustomerassistance programs,uptoatotalof$10millionthrough2021,foras longasAmerenIllinoisparticipatesintheformula ratemakingprocess.AmerenIllinoiswillalsoberequiredto makeaone-time$7.5millionnonrecoverabledonationto theIllinoisScienceandEnergyInnovationTrustin2012,as wellasanapproximate$1millionannualdonationtothe sametrustforaslongasitparticipatesintheformula ratemakingprocess.AmerenIllinoishasatariffridertorecoverthecostsofasbestos-relatedlitigationclaims,subjecttothefollowing terms:90%ofcashexpendituresinexcessoftheamount includedinbaseelectricratesaretoberecoveredfroma trustfundthatwasestablishedwhenAmerenacquiredIP.
AtDecember31,2011,thetrustfundbalancewas
$23million,includingaccumulatedinterest.Ifcash expendituresarelessthantheamountinbaserates, AmerenIllinoiswillcontribute90%ofthedifferencetothe fund.Oncethetrustfundisdepleted,90%ofallowedcash expendituresinexcessofbaserateswillberecovered throughchargesassessedtocustomersunderthetariff rider.FollowingtheAmerenIllinoisMerger,thisrideris applicableonlyforclaimsthatoccurredwithinIPs historicalserviceterritory.Similarly,theriderwillpermit recoveryonlyfromcustomerswithinIPshistoricalservice
territory.AsamemberofMISO,AmerenIllinoistransmissionrateiscalculatedinaccordancewiththeMISOOATT.The transmissionrateisupdatedinJuneofeachyearbasedon AmerenIllinoisfilingswithFERC.Thisrateischarged directlytowholesalecustomersandalternativeretail electricsuppliers.Retailcustomerswhohavenotchosenan alternativeretailelectricsupplierpaythetransmissionrate througharidermechanism.NaturalGasAllofAmerenIllinoisnaturalgasoperatingrevenuesweresubjecttoregulationbytheICCintheyearended December31,2011.InJanuary2012,theICCissuedarateorderthatapprovedanincreaseinAmerenIllinoisannualrevenues fornaturalgasdeliveryserviceof$32million.Therevenue increasewasbasedona9.06%returnonequity,acapital structurecomposedof53.3%commonequity,andaratebaseofapproximately$1billion.Therateorderwasbasedona2012futuretestyear.Theratechangesbecame effectiveonJanuary20,2012.InFebruary2012,theICC deniedrehearingrequestsbyAmerenIllinoisandan intervenorrelatedtothegrantedreturnonequity.Ifcertaincriteriaaremet,AmerenIllinoisnaturalgasratesmaybeadjustedwithoutatraditionalrateproceeding.
PGAclausespermitprudentlyincurrednaturalgascoststo bepasseddirectlytotheconsumer.Also,AmerenIllinois hasapprovalfromtheICCtousecostrecovery mechanismsforenergyefficiencyprogramsandbaddebt expensenotrecoveredinbaserates.ForadditionalinformationonIllinoisratematters,includingtheIEIMAandtheICCsJanuary2012naturalgas rateorder,seeResultsofOperationsandOutlookin ManagementsDiscussionandAnalysisofFinancial ConditionandResultsofOperationsunderPartII,Item7, QuantitativeandQualitativeDisclosuresAboutMarketRisk underPartII,Item7A,andNote2-RateandRegulatory Matters,andNote15-CommitmentsandContingencies underPartII,Item8,ofthisreport.MerchantGenerationMerchantGenerationrevenuesaredeterminedbymarketconditionsandcontractualarrangements.Weexpect theMerchantGenerationfleetofassetstohave5,503 megawattsofcapacityavailableforthe2012peaksummer electricaldemand.Thiscapacityreflectstheclosureofthe fourunitsatGencosMeredosiaandHutsonvilleenergy centersandthesaleoftheColumbiaCTduring2011,as wellasthesaleoftheMedinaValleyenergycenterinearly 2012.Asdiscussedbelow,GencoandAERGsellalloftheir powerandcapacitytoMarketingCompanythroughpower supplyagreements.MarketingCompanyattemptsto optimizethevalueofthoseassetsandtomitigaterisks throughavarietyofhedgingtechniques,including wholesalesalesofcapacityandenergy,retailsalesinthe non-rate-regulatedIllinoismarket,spotmarketsales primarilyinMISOandPJM,andfinancialtransactions, includingoptionsandotherderivatives.Marketing Companyentersintolong-termandshort-termcontracts.MarketingCompanyscounterpartiesincludecooperatives,municipalities,residential,commercialandindustrialcustomers,powermarketers,MISO,PJMandinvestor-ownedutilities,includingAmerenIllinois.ForadditionalinformationonMarketingCompanyshedgingactivitiesandMarketingCompanyssalestoAmerenIllinois,seeOutlook inManagementsDiscussionandAnalysisofFinancial ConditionandResultsofOperationsunderPartII,Item7 andNote7-DerivativeFinancialInstrumentsandNote14-RelatedPartyTransactionsunderPartII,Item8,ofthis
report.8 GeneralRegulatoryMattersAmerenMissouriandAmerenIllinoismustreceiveFERCapprovaltoenterintovarioustransactions,including toissueshort-termdebtsecuritiesandtoconductcertain acquisitions,mergers,andconsolidationsinvolvingelectric utilityholdingcompanieshavingavalueinexcessof
$10million.Inaddition,theseAmerenutilitiesmustreceive authorizationfromtheapplicablestatepublicutility regulatoryagencytoissuestockandlong-termdebt securities(withmaturitiesofmorethan12months)andto conductmergers,affiliatetransactions,andvariousother activities.GencoandAERGaresubjecttoFERCs jurisdictionwhentheyissueanysecuritiesandwhenthey enterintocertainothertransactions,includingthoselisted
above.AmerenMissouri,AmerenIllinois,ATXI,GencoandAERGarealsosubjecttomandatoryreliabilitystandards, includingcybersecuritystandards,adoptedbyFERCto ensurethereliabilityofthebulkpowerelectricsystem.
ThesestandardsaredevelopedandenforcedbyNERC pursuanttoauthoritygiventoitbytheFERC.IftheAmeren Companieswerefoundnottobeincompliancewithanyof thesemandatoryreliabilitystandardstheymayincur substantialmonetarypenaltiesandothersanctions.UnderPUHCA2005,FERCandanystatepublicutilityregulatoryagenciesmayaccessbooksandrecordsof Amerenanditssubsidiariesthataredeterminedtobe relevanttocostsincurredbyAmerensrate-regulated subsidiarieswithrespecttojurisdictionalrates.PUHCA 2005alsopermitstheMoPSCandtheICCtorequestthat FERCreviewcostallocationsbyAmerenServicestoother Amerencompanies.OperationofAmerenMissourisCallawayenergycenterissubjecttoregulationbytheNRC.Itsfacility operatinglicenseexpiresonJune11,2024.InDecember 2011,AmerenMissourisubmittedalicenseextension applicationwiththeNRCtoextendtheplantsoperating licenseto2044.ThereisnodatebywhichtheNRCmust actonthisrelicensingrequest.AmerenMissourisOsage hydroelectricenergycenterandAmerenMissourisTaum Saukpumped-storagehydroelectricenergycenter,as licensedprojectsundertheFederalPowerAct,aresubject toFERCregulationsaffecting,amongotherthings,the generaloperationandmaintenanceoftheprojects.The licenseforAmerenMissourisOsagehydroelectricenergy centerexpiresonMarch30,2047.InJune2008,Ameren MissourifiledarelicensingapplicationwithFERCtooperate itsTaumSaukpumped-storagehydroelectricenergycenter foranother40years.TheexistingFERClicenseexpiredon June30,2010.OnJuly2,2010,AmerenMissourireceived alicenseextensionthatallowsTaumSauktocontinue operationsuntilFERCissuesanewlicense.FERCis reviewingtherelicensingapplication.AFERCorderis expectedin2012or2013.AmerenMissouricannotpredict theultimateoutcomeoftheorder.AmerenMissouris Keokukenergycenteranditsdam,intheMississippiRiver betweenHamilton,Illinois,andKeokuk,Iowa,areoperated underauthoritygrantedbyanActofCongressin1905.Foradditionalinformationonregulatorymatters,seeNote2-RateandRegulatoryMattersandNote15-CommitmentsandContingenciesunderPartII,Item8,of thisreport,whichincludeadiscussionabouttheDecember 2005breachoftheupperreservoiratAmerenMissouris TaumSaukpumped-storagehydroelectricenergycenter.EnvironmentalMattersCertainofouroperationsaresubjecttofederal,state,andlocalenvironmentalstatutesorregulationsrelatingto thesafetyandhealthofpersonnel,thepublic,andthe environment.Theseenvironmentalstatutesandregulations includerequirementsforidentification,generation,storage, handling,transportation,disposal,recordkeeping,labeling, reporting,andemergencyresponseinconnectionwith hazardousandtoxicmaterials;safetyandhealthstandards; andenvironmentalprotectionrequirements,including standardsandlimitationsrelatingtothedischargeofairand waterpollutantsandthemanagementofwasteand byproductmaterials.Failuretocomplywiththosestatutes orregulationscouldhavematerialadverseeffectsonus.
Wecouldbesubjecttocriminalorcivilpenaltiesby regulatoryagenciesorwecouldbeorderedbythecourtsto payprivateparties.Exceptasindicatedinthisreport,we believethatweareinmaterialcompliancewithexisting statutesandregulations.Inadditiontoexistinglawsandregulations,includingtheIllinoisMPS,whichgovernourfacilities,theEPAis developingnumerousnewenvironmentalregulationsthat willhaveasignificantimpactontheelectricutilityindustry.
Theseregulationscouldbeparticularlyburdensomefor certaincompanies,includingAmeren,AmerenMissouriand Genco,thatoperatecoal-firedenergycenters.Significant newrulesproposedorpromulgatedsincethebeginningof 2010includetheregulationofgreenhousegasemissions; revisednationalambientairqualitystandardsforSO 2 and NO 2emissions;theCSAPR,whichrequiresfurtherreductionofSO 2andNO xemissionsfrompowerplants;aregulationgoverningmanagementofCCRandcoalash impoundments;theMATS,whichreducesemissionsof mercury,metals,andacidgasesfrompowerplants;revised NSPSforparticulatematter,SO 2,andNO xemissionsfromnewsources;andnewregulationsundertheCleanWater Actthatcouldrequiresignificantcapitalexpendituressuch asnewwaterintakestructuresorcoolingtowersatour energycenters.TheEPAalsoplanstoproposeanadditional rule,applicabletonewandexistingelectricgenerating units,governingNSPSandemissionguidelinesfor greenhousegasemissions.Thesenewregulationsmaybe litigated,sothetimingoftheirimplementationisuncertain, asevidencedbythestayoftheCSAPRbytheUnitedStates CourtofAppealsfortheDistrictofColumbiaon December30,2011.Althoughmanydetailsofthesefuture regulationsareunknown,thecombinedeffectsofthenew andproposedenvironmentalregulationsmayresultin significantcapitalexpendituresand/orincreasedoperating costsoverthenextfivetotenyearsforAmeren,Ameren MissouriandGenco.Actionsrequiredtoensurethatour 9
facilitiesandoperationsareincompliancewithenvironmentallawsandregulationscouldbeprohibitively expensive.Iftheyare,theseregulationscouldrequireusto closeortosignificantlyaltertheoperationofourenergy centers,whichcouldhaveanadverseeffectonourresults ofoperations,financialposition,andliquidity,includingthe impairmentofplantassets.Failuretocomplywith environmentallawsandregulationsmightalsoresultinthe impositionoffines,penalties,andinjunctivemeasures.Foradditionaldiscussionofenvironmentalmatters,includingNO x,SO 2,andmercuryemissionreductionrequirements,globalclimatechange,remediationefforts, andadiscussionoftheEPAsallegationsofviolationsof theCleanAirActandMissourilawinconnectionwith projectsatcertaincoal-firedenergycenters,seeLiquidity andCapitalResourcesinManagementsDiscussionand AnalysisofFinancialConditionandResultsofOperations underPartII,Item7,andNote15-Commitmentsand ContingenciesunderPartII,Item8,ofthisreport.TRANSMISSIONANDSUPPLYOFELECTRICPOWERAmerenownsanintegratedtransmissionsystemthatcomprisesthetransmissionassetsofAmerenMissouri, AmerenIllinoisandATXI.Amerenalsooperatestwo balancingauthorityareas,AMMO(whichincludesAmeren Missouri),andAMIL(whichincludesAmerenIllinois,ATXI, GencoexcludingEEIandGencosElginCTfacility,and AERG).During2011,thepeakdemandwas8,831 megawattsinAMMOand9,605megawattsinAMIL.The Amerentransmissionsystemdirectlyconnectswith15 otherbalancingauthorityareasfortheexchangeofelectric
energy.AmerenMissouri,AmerenIllinoisandATXIaretransmission-owningmembersofMISO.Transmission serviceontheAmerentransmissionsystemsisprovided pursuanttothetermsoftheMISOOATTonfilewithFERC.
EEIoperatesitsownbalancingauthorityareaanditsown transmissionfacilitiesinsouthernIllinois.TheEEI transmissionsystemisdirectlyconnectedtoMISO,the TennesseeValleyAuthority,andLouisvilleGasandElectric Company.EEIsgeneratingunitsaredispatchedseparately fromthoseofAmerenMissouri,GencoandAERG.FERC,initsorderissuedinMay2011,approvedtransmissionrateincentivesfortheIllinoisRiversprojectand theBigMuddyproject,whichwillbedevelopedbyATXIor ATX.InDecember2011,MISOapprovedtheIllinoisRivers projectaswellastheSpoonRiverandMarkTwainprojects.
ThetotalinvestmentinthesethreeMISO-approvedprojects isexpectedtobemorethan$1.2billionthrough2019,with potentialinvestmentofapproximately$750millionfrom 2012to2016.AllfourprojectsareinMissouriandIllinois.
ConstructionwillbeginfirstontheIllinoisRiversproject.The BigMuddyprojectiscurrentlybeingevaluatedforinclusion inMISOs2012expansionplan.TheAmerenCompaniesandEEIaremembersofSERC.SERCisresponsibleforthebulkelectricpowersupplysysteminallorportionsofMissouri,Illinois,Arkansas,Kentucky,Tennessee,NorthCarolina,SouthCarolina, Georgia,Mississippi,Alabama,Louisiana,Virginia,Florida, Oklahoma,Iowa,andTexas.AsaresultoftheEnergyPolicy Actof2005,ownersandoperatorsofthebulkelectricpower systemaresubjecttomandatoryreliabilitystandards promulgatedbyNERCanditsregionalentities,suchas SERC,whichareenforcedbyFERC.TheAmerenCompanies mustfollowthesestandards,whichareinplacetoensurethe reliabilityofthebulkelectricpowersystem.SeeNote2-RateandRegulatoryMattersunderPartII,Item8,ofthisreportforadditionalinformation.AmerenMissouriAmerenMissouriselectricsupplyisobtainedprimarilyfromitsowngeneration.FactorsthatcouldcauseAmeren Missouritopurchasepowerinclude,amongotherthings, absenceofsufficientownedgeneration,energycenter outages,thefulfillmentofrenewableenergyportfolio requirements,thefailureofsupplierstomeettheirpower supplyobligations,extremeweatherconditions,andthe availabilityofpoweratacostlowerthanthecostof generatingit.AmerenMissouricontinuestoevaluateitslonger-termneedsfornewbaseloadandpeakingelectricgeneration capacity.AmerenMissourisintegratedresourceplanfiled withtheMoPSCinFebruary2011includedtheexpectation thatnewbaseloadgenerationcapacitywouldberequired between2020and2030.Becauseofthesignificanttime requiredtoplan,acquirepermitsfor,andbuildabaseload powerplant,AmerenMissouricontinuestostudyfuture plantalternatives,aswellasenergyefficiencyprograms thatcouldhelpdefernewplantconstruction.Topreparefor thelong-termneedforbaseloadcapacity,andtopreparefor potentiallymorestringentenvironmentalregulationofcoal-firedenergycenters,whichcouldleadtotheretirementof currentbaseloadassets,AmerenMissouriistakingstepsto preserveoptionstomeetfuturedemand.Thesesteps includeseekingimprovementsinregulatorytreatmentof energyefficiencyinvestments,evaluatingpotentialsitesfor naturalgas-firedgeneration,andpursuinganearlysite permitforanadditionalunitatitsexistingnuclearplantsite.
AmerenMissourispursuitofanearlysitepermitis dependentuponenactmentofalegislativeframework ensuringcostrecovery.SeealsoOutlookinManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperations underPartII,Item7,andNote2-RateandRegulatory MattersandNote15-CommitmentsandContingencies underPartII,Item8,ofthisreport.AmerenIllinoisAnyelectricsupplypurchasedbyAmerenIllinoisforitsretailcustomerscomeseitherthroughanannual procurementprocessconductedbytheIPAorthrough 10 marketsoperatedbyMISO.ThepowerandrelatedprocurementcostsincurredbyAmerenIllinoisarepassed directlytoitscustomersthroughacostrecovery
mechanism.TheIPAadministersaRFPprocessthatprocuresAmerenIllinoisexpectedsupplyobligation.Sincethestart ofthisprocess,theICChasapprovedtheoutcomesof multipleelectricpowerprocurementRFPsforenergy, capacity,andrenewableenergycreditscoveringdifferent timeperiods.AportionoftheelectricpowersupplyrequiredforAmerenIllinoistosatisfyitsdistributioncustomers requirementsispurchasedintheRFPprocessadministered bytheIPAfromMarketingCompanyonbehalfofGenco andAERG.Inaddition,aspartofthe2007IllinoisElectric SettlementAgreement,AmerenIllinoisenteredintofinancial contractswithMarketingCompany(forthebenefitofGenco andAERG)tolockinenergypricesfor400to1,000 megawattsannuallyofitsround-the-clockpower requirementsduringtheperiodJune1,2008,through December31,2012,atthemarketpricesrelevantatthat time.Thesefinancialcontractsdonotincludecapacity,are notload-followingproducts,anddonotinvolvethephysical deliveryofenergy.SeeNote2-RateandRegulatoryMatters,Note14-RelatedPartyTransactionsandNote15-Commitments andContingenciesunderPartII,Item8,ofthisreportfor additionalinformationonpowerprocurementinIllinois.MerchantGenerationGencoandAERGhaveenteredintopowersupplyagreementswithMarketingCompanywherebyGencoand AERGsell,andMarketingCompanypurchases,allofthecapacityandenergyavailablefromGencosandAERGs generationenergycentersandtheassociatedenergy.Thesepowersupplyagreementscontinuethrough December31,2022,andfromyeartoyearthereafter unlesseitherpartyelectstoterminatetheagreementby providingtheotherpartywithnolessthansixmonths advancewrittennotice.EEIandMarketingCompanyhave enteredintoapowersupplyagreementforEEItosellallof itscapacityandenergytoMarketingCompany.This agreementexpiresonMay31,2016.AllofGencos, AERGsandEEIsenergycenterscompeteforthesaleof energyandcapacityinthecompetitiveenergymarkets throughMarketingCompany.SeeNote14-RelatedParty TransactionsunderPartII,Item8,ofthisreportfor additionalinformation.POWERGENERATIONThefollowingtablepresentsthesourceofelectricgeneration,excludingpurchasedpower,fortheyearsendedDecember31,2011,2010and2009:CoalNuclearNaturalGasRenewablesOil Ameren: (a)2011...............................................85%12%1%2%(b)%
2010...............................................851212(b) 2009...............................................831313(b)AmerenMissouri:
2011...............................................77%19%1%3%(b)%
2010...............................................771913-2009...............................................7521(b)4-MerchantGeneration:
2011...............................................98%-%2%-%(b)%
2010...............................................98-2-(b) 2009...............................................99-1-(b)
Genco: 2011...............................................99%-%1%-%(b)%
2010...............................................99-1-(b) 2009...............................................100-(b)-(b)(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.(b)Lessthan1%oftotalfuelsupply.
11 ThefollowingtablepresentsthecostoffuelsforelectricgenerationfortheyearsendedDecember31,2011,2010and 2009:CostofFuels(DollarspermillionBtus)201120102009 Ameren: Coal (a).......................................................................$1.931$1.848$1.654 Nuclear......................................................................
0.7500.7010.620Naturalgas (b)..................................................................
6.0976.5398.685Weightedaverage-allfuels (c)....................................................$1.873$1.803$1.591AmerenMissouri:
Coal (a).......................................................................$1.733$1.675$1.534 Nuclear......................................................................
0.7500.7010.620Naturalgas (b)..................................................................
5.8736.1998.544Weightedaverage-allfuels (c)....................................................$1.610$1.563$1.386MerchantGeneration:
Coal (a).......................................................................$2.184$2.063$1.813Naturalgas (b)..................................................................
6.3746.9728.796Weightedaverage-allfuels (c)....................................................$2.292$2.169$1.934 Genco: Coal (a).......................................................................$2.230$2.112$1.869Naturalgas (b)..................................................................
7.2727.88113.159Weightedaverage-allfuels (c)....................................................$2.322$2.206$1.957(a)Thefuelcostforcoalrepresentsthecostofcoal,costsfortransportation,whichincludesrailroaddieselfueladditives,andcostofemission allowances.(b)Thefuelcostfornaturalgasrepresentsthecostofnaturalgasandfirmandvariablecostsfortransportation,storage,balancing,andfuellossesfordeliverytotheplant.Inaddition,thefixedcostsforfirmtransportationandfirmstoragecapacityareincludedinthecalculationof fuelcostforthegeneratingfacilities.(c)Representsallcostsforfuelsusedinourelectricgeneratingfacilities,totheextentapplicable,includingcoal,nuclear,naturalgas,oil,p ropane,tirechips,paintproducts,andhandling.Oil,paintproducts,propane,andtirechipsarenotindividuallylistedinthistablebecausetheiruseis
minimal.CoalAmeren,AmerenMissouriandGencohaveagreementsinplacetopurchaseaportionoftheircoalneedsandto transportittoelectricgeneratingenergycentersthrough 2019.Ameren,AmerenMissouriandGencoexpecttoenter intoadditionalcontractstopurchasecoalfromtimetotime.
Coalsupplyagreementstypicallyhaveaninitialtermofupto fiveyears,withabout20%ofthecontractsexpiringannually.
AmerenMissourihasanongoingneedforcoaltoserveits nativeloadcustomersandpursuesapricehedgingstrategy consistentwiththisrequirement.MerchantGenerations forwardcoalrequirementsaredependentonthevolumeof powersalesthathavebeencontracted.MerchantGeneration strivestoachieveincreasedmargincertaintybyaligningits fuelpurchaseswithitspowersales.Amerenburned 39milliontons(AmerenMissouri-22million,Genco-13million)ofcoalin2011.SeePartII,Item7A-Quantitative andQualitativeDisclosuresAboutMarketRiskofthisreport foradditionalinformationaboutcoalsupplycontracts.About98%ofAmerenscoal(AmerenMissouri-97%,Genco-99%)ispurchasedfromthePowderRiverBasinin Wyoming.Theremainingcoalistypicallypurchasedfrom theIllinoisBasin.Ameren,AmerenMissouriandGenco haveagoaltomaintaincoalinventoryconsistentwiththeir riskmanagementpolicies.Inventorymaybeadjusted becauseofchangesinburnoruncertaintiesofsupplydue topotentialworkstoppages,delaysincoaldeliveries, equipmentbreakdowns,andotherfactors.Inthepast, deliveriesfromthePowderRiverBasinhaveoccasionally beenrestrictedbecauseofrailmaintenance,weather,andderailments.AsofDecember31,2011,coalinventoriesforAmerenMissouriwereattargetedlevelsandwereator abovetargetedlevelsforGenco.Disruptionsincoal deliveriescouldcauseAmeren,AmerenMissouriandGenco topursueastrategythatcouldincludereducingsalesof powerduringlow-marginperiods,buyinghigher-costfuels togeneraterequiredelectricity,andpurchasingpowerfrom othersources.
NuclearThestepsintheprocesstoprovidenuclearfuelgenerallyinvolvetheminingandmillingofuraniumoreto produceuraniumconcentrates,theconversionofuranium concentratestouraniumhexafluoridegas,theenrichment ofthatgas,andthefabricationoftheenricheduranium hexafluoridegasintousablefuelassemblies.Ameren Missourihasenteredintouranium,uraniumconversion, enrichment,andfabricationcontractstoprocurethefuel supplyforitsCallawaynuclearplant.Fuelassembliesforthe2013springrefuelingatAmerenMissourisCallawayenergycenterarescheduled formanufactureanddeliverytotheplantduring2012.
AmerenMissourialsohasagreementsorinventoriesto price-hedgeapproximately92%,82%,and47%ofCallaways2013,2014and2016refuelingrequirements, respectively.AmerenMissourihasuranium(concentrate andhexafluoride)inventoriesandsupplycontracts sufficienttomeetallofitsuraniumandconversion requirementsthroughatleast2014.AmerenMissourihas enricheduraniuminventoriesandenrichmentsupply 12 contractssufficienttosatisfyenrichmentrequirementsthrough2013.Fuelfabricationservicesareundercontract through2014.AmerenMissouriexpectstoenterinto additionalcontractstopurchasenuclearfuel.Asamember ofFuelco,AmerenMissouricanjoinwithothermember companiestoincreaseitspurchasingpower,enhance diversificationandpursueopportunitiesforvolume discounts.TheCallawaynuclearplantnormallyrequires refuelingat18-monthintervals.Thelastrefuelingwas completedinNovember2011.Thereisnorefueling scheduledfor2012and2015.Thenuclearfuelmarketsare competitive,andpricescanbevolatile;however,wedonot anticipateanysignificantproblemsinmeetingourfuture supplyrequirements.NaturalGasSupplyforGenerationTomaintaingasdeliveriestogas-firedgeneratingunitsthroughouttheyear,especiallyduringthesummerpeak demand,Amerensportfolioofnaturalgassupplyresources includesfirmtransportationcapacityandfirmno-notice storagecapacityleasedfrominterstatepipelines.Ameren MissouriandGencoprimarilyusetheinterstatepipeline systemsofPanhandleEasternPipeLineCompany,Trunkline GasCompany,NaturalGasPipelineCompanyofAmerica, andMississippiRiverTransmissionCorporationtotransport naturalgastogeneratingunits.Inadditiontophysical transactions,Amerenusesfinancialinstruments,including someintheNYMEXfuturesmarketandsomeintheOTC financialmarkets,tohedgethepricepaidfornaturalgas.AmerenMissourisandGencosnaturalgasprocurementstrategyisdesignedtoensurereliableand immediatedeliveryofnaturalgastotheirgeneratingunits.
Thisisaccomplishedbyoptimizingtransportationand storageoptionsandminimizingcostandpriceriskthrough varioussupplyandprice-hedgingagreementsthatallow accesstomultiplegaspools,supplybasins,andstorage services.AsofDecember31,2011,AmerenMissourihad price-hedgedabout12%andGencohadprice-hedged32%
ofitsexpectednaturalgassupplyrequirementsfor generationin2012.RenewableEnergyIllinoisandMissourihaveenactedlawsrequiringelectricutilitiestoincluderenewableenergyresourcesin theirportfolios.Illinoisrequiresrenewableenergyresources toequalorexceed2%ofthetotalelectricitythateach electricutilitysuppliestoitseligibleretailcustomersasof June1,2008,increasingto15%byJune1,2015,andto 25%byJune1,2025.AmerenIllinoishasprocured renewableenergycreditsundertheIPA-administered procurementprocesstomeettherenewableenergy portfoliorequirementthroughMay2012.InDecember 2010,AmerenIllinoisenteredintoa20-yearagreementwith renewableenergysuppliersandwillbeginreceiving renewableenergycreditsundertheagreementstartingin June2012,tohelpsupplementtheserequirements.
Approximately50%ofthe2012renewableenergy requirementwillbemetthroughthisagreement.In2011,AmerenIllinoisprocuredapproximately6%ofitstotalelectricityfromrenewableenergyresources.InMissouri,utilitiesarerequiredtopurchaseorgeneratefromrenewableenergysourceselectricityequalingatleast 2%ofnativeloadsales,withthatpercentageincreasingtoat least15%by2021,subjecttoa1%limitoncustomerrate impacts.Atleast2%ofeachrenewableenergyportfolio requirementmustbederivedfromsolarenergy.Ameren Missouriexpectstosatisfythenonsolarrequirementthrough 2017withexistingrenewablegenerationinitscurrentfleet alongwitha15-year102MWpowerpurchaseagreement withawindfarmoperatorinIowathatbecameeffectivein 2009andthelandfillgasprojectdiscussedbelow.Currently, AmerenMissouriexpectstomeetthesolarenergyrequirementthroughthepurchaseofsolar-generatedrenewableenergycredits;however,AmerenMissouriis studyingotheroptionsforcompliance.In2011,Ameren Missouripurchasedorgeneratedapproximately3%ofits nativeloadsalesfromrenewableenergyresources.InSeptember2009,AmerenMissouriannouncedanagreementwithalandfillownertoinstallCTsatalandfill siteinMarylandHeights,Missouri,whichisexpectedto generateapproximately15megawattsofelectricityby burningmethanegascollectedfromthelandfill.TheCTs (knownastheMarylandHeightsenergycenter)are expectedtobegingeneratingpowerin2012.Ameren Missourisigneda20-yearsupplyagreementwiththe landfillownertopurchasemethanegas.EnergyEfficiencyAmerensrate-regulatedutilitieshaveimplementedenergyefficiencyprogramstoeducateandhelptheir customersbecomemoreefficientusersofenergy.The MEEIA,enactedin2009,establishedaregulatory frameworkthat,amongotherthings,allowselectricutilities torecovercostsrelatedtoMoPSC-approvedenergy efficiencyprograms.ThelawrequirestheMoPSCtoensure thatautilitysfinancialincentivesarealignedwithhelping customersuseenergymoreefficiently,toprovidetimely costrecovery,andtoprovideearningsopportunities associatedwithcost-effectiveenergyefficiencyprograms.
Missouridoesnothavealawmandatingenergyefficiency
standards.InJanuary2012,AmerenMissourimadeitsinitialfilingwiththeMoPSCundertheMEEIA.Thisfiling proposesathree-yearplanthatincludesaportfolioof energyefficiencyprogramsalongwithacostrecovery mechanism.Iftheproposalisapproved,beginningin January2013,AmerenMissouriplanstoinvest
$145millionoverthreeyearsfortheproposedenergy efficiencyprograms.AdecisionbytheMoPSCinthis proceedingisanticipatedinthesecondquarterof2012.
AmerenMissourianticipatesthattheimpactsofthe MoPSCsdecisioninthisMEEIAfilingwillbeincludedin ratessetunderitspendingelectricserviceratecasethat wasfiledonFebruary3,2012,whichhasananticipated true-updateofJuly31,2012.AmerenMissourispending electricratecaseincludesanannualrevenueincreaseof 13
$81millionrelatingtoitsplannedportfolioofenergyefficiencyprogramsincludedinitsMEEIAfiling.See Note2-RateandRegulatoryMattersunderPartII,Item8, ofthisreportforadditionalinformation.IllinoishasenactedalawrequiringAmerenIllinoistoofferenergyefficiencyprograms.Thelawalsoallows recoverymechanismsoftheprogramscosts.TheICChas issuedordersapprovingAmerenIllinoiselectricandnatural gasenergyefficiencyplansaswellascostrecovery mechanismsbywhichprogramcostscanberecovered fromcustomers.Inaddition,overaten-yearperiod, AmerenIllinoiswillinvestanestimated$625millionto upgradeandmodernizeitstransmissionanddistribution infrastructureinaccordancewiththeIEIMA.Aspartof theseupgrades,AmerenIllinoisexpectstoinvest
$360milliontoinstallsmartmeters,whichcouldenable customerstoimproveefficiency.NATURALGASSUPPLYFORDISTRIBUTIONAmerenMissouriandAmerenIllinoisareresponsibleforthepurchaseanddeliveryofnaturalgastotheirgasutility customers.AmerenMissouriandAmerenIllinoisdevelopand manageaportfolioofgassupplyresources.Theseinclude firmgassupplyundertermagreementswithproducers, interstateandintrastatefirmtransportationcapacity,firm storagecapacityleasedfrominterstatepipelines,and on-systemstoragefacilitiestomaintaingasdeliveriesto customersthroughouttheyearandespeciallyduringpeak demand.AmerenMissouriandAmerenIllinoisprimarilyuse thePanhandleEasternPipeLineCompany,theTrunklineGas Company,theNaturalGasPipelineCompanyofAmerica,the MississippiRiverTransmissionCorporation,theNorthern BorderPipelineCompany,andtheTexasEastern TransmissionCorporationinterstatepipelinesystemsto transportnaturalgastotheirsystems.Inadditiontophysical transactions,financialinstruments,includingthoseentered intointheNYMEXfuturesmarketandintheOTCfinancial markets,areusedtohedgethepricepaidfornaturalgas.See PartII,Item7A-QuantitativeandQualitativeDisclosures AboutMarketRiskofthisreportforadditionalinformation aboutnaturalgassupplycontracts.Naturalgaspurchase costsarepassedontocustomersofAmerenMissouriand AmerenIllinoisunderPGAclauses,subjecttoprudency reviewsbytheMoPSCandtheICC.AsofDecember31, 2011,AmerenMissourihadprice-hedged90%,andAmeren Illinoishadprice-hedged87%,ofitsexpectednaturalgas supplyrequirementsfordistributionin2012.Foradditionalinformationonourfuelandpurchasedpowersupply,seeResultsofOperations,Liquidityand CapitalResourcesandEffectsofInflationandChanging PricesinManagementsDiscussionandAnalysisof FinancialConditionandResultsofOperationsunderPartII, Item7,ofthisreport.AlsoseeQuantitativeandQualitative DisclosuresAboutMarketRiskunderPartII,Item7A,of thisreport,Note1-SummaryofSignificantAccountingPolicies,Note7-DerivativeFinancialInstruments,Note10-CallawayEnergyCenter,Note14-RelatedParty Transactions,andNote15-Commitmentsand ContingenciesunderPartII,Item8ofthisreport.INDUSTRYISSUESWearefacingissuescommontotheelectricandnaturalgasutilityindustryandthemerchantelectric generationindustry.Theseissuesinclude:
continuallydevelopingandcomplexenvironmentallaws,regulationsandissues,includingairandwater qualitystandards,mercuryemissionsstandards,and likelygreenhousegaslimitationsandashmanagement
requirements; politicalandregulatoryresistancetohigherrates,especiallyinadifficulteconomicenvironment; thepotentialforchangesinlaws,regulation,andpoliciesatthestateandfederallevel,includingthose resultingfromelectioncycles; accessto,anduncertaintyin,thecapitalandcredit markets;thepotentialformoreintensecompetitioningeneration,supplyanddistribution,includingnew
technologies; pressureoncustomergrowthandusageinlightofcurrenteconomicconditionsandenergyefficiency
initiatives; thepotentialforreregulationinsomestates,whichcouldcauseelectricdistributioncompaniestobuildoracquiregenerationfacilitiesandtopurchaselesspowerfromelectricgeneratingcompaniessuchasGencoandAERG; changesinthestructureoftheindustryasaresultofchangesinfederalandstatelaws,includingthe formationofmerchantgenerators,independent transmissionentitiesandRTOs; increases,decreasesandvolatilityinpowerpricesduetothebalanceofsupplyanddemandandmarginalfuel
costs;theavailabilityoffuelandincreasesordecreasesinfuel prices;theavailabilityofqualifiedlaborandmaterial,andrising costs;regulatorylag; decreasedornegativefreecashflowsduetorisinginfrastructureinvestmentsandregulatoryframeworks; publicconcernaboutthesitingofnewfacilities; aginginfrastructureandtheneedtoconstructnewpowergeneration,transmissionanddistribution
facilities; legislationorproposalsforprogramstoencourageormandateenergyefficiencyandrenewablesourcesof
power;publicconcernsaboutnuclearplantoperationanddecommissioningandthedisposalofnuclearwaste;and consolidationofelectricandnaturalgascompanies.
14 Wearemonitoringtheseissues.Exceptasotherwisenotedinthisreport,weareunabletopredictwhatimpact,if any,theseissueswillhaveonourresultsofoperations, financialposition,orliquidity.Foradditionalinformation, seeRiskFactorsunderPartI,Item1A,andOutlookinManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperationsunderPartII,Item7, andNote2-RateandRegulatoryMattersandNote15-CommitmentsandContingenciesunderPartII,Item8,of thisreport.OPERATINGSTATISTICSThefollowingtablespresentkeyelectricandnaturalgasoperatingstatisticsforAmerenforthepastthreeyears:ElectricOperatingStatistics-YearEndedDecember31,201120102009ElectricSales-kilowatthours(inmillions):AmerenMissouri:
Residential
.................................................................
13,86714,64013,413 Commercial
.................................................................
14,74315,00214,510 Industrial
...................................................................
8,6918,6567,037 Other......................................................................
127129137Nativeloadsubtotal
........................................................
37,42838,42735,097Off-systemandwholesale
......................................................
10,7159,79613,965 Subtotal.................................................................
48,14348,22349,062AmerenIllinois:
ResidentialPowersupplyanddeliveryservice
.............................................
11,77112,34011,089Deliveryserviceonly
........................................................
77 1-CommercialPowersupplyanddeliveryservice
.............................................
3,6624,4195,235Deliveryserviceonly
........................................................
8,5618,0516,797 IndustrialPowersupplyanddeliveryservice
.............................................
1,5021,389514Deliveryserviceonly
........................................................
11,36011,14710,712 Other......................................................................
529545546Nativeloadsubtotal
........................................................
37,46237,89234,893MerchantGeneration:Nonaffiliateenergysales
.......................................................
31,14830,78825,673Affiliatenativeenergysales
.....................................................
1,0049493,529 Subtotal.................................................................
32,15231,73729,202Eliminateaffiliatesales
..........................................................
(1,004)(949)(3,529)EliminateAmerenIllinois/MerchantGenerationcommoncustomers
.......................
(5,454)(5,016)(5,566)Amerentotal
..............................................................
111,299111,887104,062ElectricOperatingRevenues(inmillions):AmerenMissouri:
Residential
.................................................................$1,272$1,193$982 Commercial
.................................................................
1,084 1,004 881 Industrial
...................................................................
438399314 Other......................................................................
769162Nativeloadsubtotal
........................................................$2,870$2,687$2,239Off-systemandwholesale
......................................................
352343461 Subtotal.................................................................$3,222$3,030$2,700AmerenIllinois:
ResidentialPowersupplyanddeliveryservice
.............................................$1,194$1,270$1,094Deliveryserviceonly
........................................................
3--CommercialPowersupplyanddeliveryservice
.............................................
350425521Deliveryserviceonly
........................................................
157143103 IndustrialPowersupplyanddeliveryservice
.............................................
656622Deliveryserviceonly
........................................................
433836 Other......................................................................
128119189Nativeloadsubtotal
........................................................$1,940$2,061$1,965MerchantGeneration:Nonaffiliateenergysales
.......................................................$1,382$1,442$1,340Affiliatenativeenergysales
.....................................................
235231385 Other......................................................................
1220(15)Subtotal.................................................................$1,629$1,693$1,710Eliminateaffiliaterevenues
.......................................................
(261)(263)(435)Amerentotal
..............................................................$6,530$6,521$5,940 15 ElectricOperatingStatistics-YearEndedDecember31,201120102009ElectricGeneration-megawatthours(inmillions):AmerenMissouri
.............................................................
48.848.148.7MerchantGeneration:
Genco...................................................................
22.022.020.5 AERG...................................................................
7.07.56.8MedinaValley
.............................................................
0.10.10.2 Subtotal...............................................................
29.129.627.5Amerentotal
............................................................
77.977.776.2Pricepertonofdeliveredcoal(average)
.............................................$33.79$32.91$29.85Sourceofenergysupply:
Coal.......................................................................
66.5%65.7%67.0%
Nuclear....................................................................
9.48.910.8 Hydroelectric
................................................................
1.31.62.0Gas.......................................................................
1.11.00.6Purchased-Wind
............................................................
0.30.30.1Purchased-Other
...........................................................
21.422.519.5 100.0%100.0%100.0%GasOperatingStatistics-YearEndedDecember31,201120102009GasSales(millionsofDth)AmerenMissouri:
Residential
.................................................................
7 77 Commercial
.................................................................
3 44 Industrial
...................................................................
1 11 Subtotal.................................................................
111212AmerenIllinois:
Residential
.................................................................
566060 Commercial
.................................................................
212326 Industrial
...................................................................
5 77 Subtotal.................................................................
829093 Other: Industrial
...................................................................
-13 Subtotal.................................................................
-13Amerentotal
..............................................................
93103108NaturalGasOperatingRevenues(inmillions)AmerenMissouri:
Residential
.................................................................$96$100$106 Commercial
.................................................................
414347 Industrial
...................................................................
91010 Other......................................................................
10137 Subtotal.................................................................$156$166$170AmerenIllinois:
Residential
.................................................................$588$649$646 Commercial
.................................................................
195223259 Industrial
...................................................................
304438 Other......................................................................
333772 Subtotal.................................................................$846$953$1,015 Other: Industrial
...................................................................
$-$4$15 Subtotal.................................................................
$-$4$15Eliminateaffiliaterevenues
.......................................................
(1)(6)(5)Amerentotal
..............................................................$1,001$1,117$1,195 Peakdaythroughput(thousandsofDth):AmerenMissouri
.............................................................
149167163AmerenIllinois
..............................................................
1,1571,2271,353Totalpeakdaythroughput
.......................................................
1,3061,3941,516 16 AVAILABLEINFORMATIONTheAmerenCompaniesmakeavailablefreeofchargethroughAmerenswebsite(www.ameren.com)theirannual reportsonForm10-K,quarterlyreportsonForm10-Q, currentreportsonForm8-K,AmerenseXtensibleBusiness ReportingLanguage(XBRL)documents,andany amendmentstothosereportsfiledwithorfurnishedto pursuanttoSections13(a)or15(d)oftheExchangeActas soonasreasonablypossibleaftersuchreportsare electronicallyfiledwith,orfurnishedto,theSEC.These documentsarealsoavailablethroughanInternetwebsite maintainedbytheSEC(www.sec.gov).Amerenalsouses itswebsiteasachannelofdistributionofmaterial informationrelatingtotheAmerenCompanies.Financial andothermaterialinformationregardingtheAmeren CompaniesisroutinelypostedandaccessibleatAmerens
website.TheAmerenCompaniesalsomakeavailablefreeofchargethroughAmerenswebsitethechartersofAmerens boardofdirectorsauditandriskcommittee,human resourcescommittee,nominatingandcorporate governancecommittee,financecommittee,nuclear oversightandenvironmentalcommittee,andpublicpolicy committee;thecorporategovernanceguidelines;apolicy regardingcommunicationstotheboardofdirectors;a policyandprocedureswithrespecttorelated-person transactions;acodeofethicsforprincipalexecutiveand seniorfinancialofficers;acodeofbusinessconduct applicabletoalldirectors,officersandemployees;anda directornominationpolicythatappliestotheAmeren Companies.TheinformationonAmerenswebsite,orany otherwebsitereferencedinthisreport,isnotincorporated byreferenceintothisreport.ITEM1A.RISKFACTORS.Investorsshouldreviewcarefullythefollowingriskfactorsandtheotherinformationcontainedinthisreport.
TherisksthattheAmerenCompaniesfacearenotlimitedto thoseinthissection.Theremaybeadditionalrisksand uncertainties(eithercurrentlyunknownornotcurrently believedtobematerial)thatcouldadverselyaffectthe resultsofoperations,financialposition,andliquidityofthe AmerenCompanies.SeeForward-LookingStatements aboveandOutlookinManagementsDiscussionand AnalysisofFinancialConditionandResultsofOperations underPartII,Item7,ofthisreport.TheAmerenCompaniesaresubjecttoextensiveregulationoftheirbusinesses,whichcouldadversely affecttheirresultsofoperations,financialposition,and
liquidity.TheAmerenCompaniesaresubjectto,oraffectedby,extensivefederal,state,andlocalregulation.Thisextensive regulatoryframework,somebutnotallofwhichismore specificallyidentifiedinthefollowingriskfactors,regulates, amongothermatters,theelectricandnaturalgas industries;rateandcoststructureofutilities;operationofnuclearpowerfacilities;constructionandoperationofgeneration,transmissionanddistributionfacilities; acquisition,disposal,depreciationandamortizationof assetsandfacilities;transmissionreliability;andpresentor prospectivewholesaleandretailcompetition.TheAmeren Companiesmustaddressintheirbusinessplanningand managementofoperationstheeffectsofexistingand proposedlawsandregulationsandpotentialchangesinthe regulatoryframework,includinginitiativesbyfederaland statelegislatures,RTOs,utilityregulators,andtaxing authorities.Significantchangesinthenatureofthe regulationoftheAmerenCompaniesbusinessescould requirechangestotheirbusinessplanningand managementoftheirbusinessesandcouldadverselyaffect theirresultsofoperations,financialposition,andliquidity.
FailureoftheAmerenCompaniestoobtainadequaterates orregulatoryapprovalsinatimelymanner,failuretoobtain necessarylicensesorpermitsfromregulatoryauthorities, neworchangedlaws,regulations,standards, interpretations,orotherlegalrequirements,orincreased compliancecostscouldadverselyimpacttheAmeren Companiesresultsofoperations,financialposition,and
liquidity.TheelectricandnaturalgasratesthatAmerenMissouriandAmerenIllinoisareallowedtochargeare determinedthroughregulatoryproceedings,whichare subjecttoappeal,andaresubjecttolegislativeactions, whicharelargelyoutsideoftheircontrol.Anyeventsthat preventAmerenMissouriorAmerenIllinoisfromrecoveringtheirrespectivecostsorfromearningappropriatereturnsontheirinvestmentscouldhavea materialadverseeffectonresultsofoperations,financial position,andliquidity.TheratesthatAmerenMissouriandAmerenIllinoisareallowedtochargefortheirutilityservicessignificantly influencetheresultsofoperations,financialposition,and liquidityofthesecompaniesandAmeren.Theelectricand naturalgasutilityindustriesarehighlyregulated.Theutility rateschargedtoAmerenMissouriandAmerenIllinois customersaredetermined,inlargepart,bygovernmental entities,includingtheMoPSC,theICC,andFERC.Decisions bytheseentitiesareinfluencedbymanyfactors,including thecostofprovidingservice,theprudencyofexpenditures, thequalityofservice,regulatorystaffknowledgeand experience,economicconditions,publicpolicy,andsocial andpoliticalviews.Decisionsmadebythesegovernmental entitiesregardingratesarelargelyoutsideofAmeren MissourisandAmerenIllinoiscontrol.Regulatorylag involvedinfilingandgettingnewratesapprovedcouldhave amaterialadverseeffectonourresultsofoperations, financialposition,andliquidity.Rateordersarealsosubject toappeal,whichcreatesadditionaluncertaintyastothe ratesAmerenMissouriandAmerenIllinoiswillultimatelybe allowedtochargefortheirservices.AmerenMissourielectricandnaturalgasutilityratesandAmerenIllinoisnaturalgasutilityratesaretypically establishedinregulatoryproceedingsthattakeupto11 monthstocomplete.Ratesestablishedinthose 17 proceedingsforAmerenMissouriareprimarilybasedonhistoricalcostsandrevenues.Ratesestablishedinthose proceedingsforAmerenIllinoismaybebasedonhistorical orestimatedfuturecostsandrevenues.Thus,theratesa utilityisallowedtochargemaynotmatchitscostsatany giventime.Ratesincludeanallowedreturnoninvestments bytheregulators.Althoughrateregulationispremisedon providingareasonableopportunitytoearnareasonable rateofreturnoninvestedcapital,therecanbenoassurance thattheapplicableregulatorycommissionwilljudgeallthe costsofAmerenMissouriandAmerenIllinoistohavebeen prudentlyincurredorthattheregulatoryprocessinwhich ratesaredeterminedwillalwaysresultinratesthatwill producefullrecoveryofsuchcostsoranadequatereturn onthoseinvestments.In2011,forexample,theMoPSC issuedanelectricrateorderthatdisallowed$89millionof costsincurredrelatedtotherebuildingoftheTaumSauk energycenter.Asaresult,AmerenandAmerenMissouri eachrecordeda2011pretaxchargetoearningsof
$89million.Duringperiodsofrisingcostsandinvestmentsordecliningretailusage,AmerenMissouriandAmerenIllinois maynotbeabletoearntheallowedreturnestablishedby theirregulators.Thiscouldresultindeferralorelimination ofplannedcapitalinvestments.Aperiodofincreasingrates forourcustomerscouldresultinadditionalregulatoryand legislativeactions,aswellascompetitiveandpolitical pressures,whichcouldhaveamaterialadverseeffecton ourresultsofoperations,financialposition,andliquidity.Bychoosingtoparticipateintheperformance-basedformularatemakingprocessestablishedpursuanttothe IEIMA,AmerenIllinoisreturnonequitywillbedirectly correlatedtoyieldsonUnitedStatestreasurybonds.
Additionally,AmerenIllinoiswillbesubjecttoanannual ICCprudencereviewandwillberequiredtoachieve performanceobjectives,increasecapitalspending levels,andmeetjobcreationtargets,whichifnot successfullycompletedorachievedcouldhaveamaterial adverseeffectonitsresultsofoperations,financial position,andliquidity.OnJanuary3,2012,AmerenIllinoiselectedtoparticipateintheperformance-basedformularatemaking processestablishedpursuanttotheIEIMAbysubmittingits initialfilingwiththeICCforitselectricdistributionbusiness.
TheICCwillannuallyreviewAmerenIllinoisperformance-basedratefilingsundertheIEIMAforreasonablenessand prudency.TheICCcouldconcludethatAmerenIllinois incurredcostswerenotprudentlyincurredandthus disallowrecoveryofsuchcostsannually.Additionally,the equitycomponentoftheformularatewillbeequaltothe averagefortheapplicablecalendaryearofthemonthly averageyieldsof30-yearUnitedStatestreasurybondsplus 590basispointsfor2012and580basispointsthereafter.
Therefore,AmerenIllinoisannualreturnonequitywillbe directlycorrelatedtoyieldsonUnitedStatestreasury bonds,whichareoutsideofAmerenIllinoiscontrol.AmerenIllinoiswillalsobesubjecttoperformancestandards.Failuretoachievethestandardswillresultinareductioninthecompanysallowedreturnonequitycalculatedundertheformula.TheIEIMAprovidesforreturn onequitypenaltiestotaling30basispointsin2013through 2015,34basispointsin2016through2018,and38basis pointsin2019through2022iftheperformancestandards arenotmet.Between2012and2021,AmerenIllinoiswillberequiredtoinvest$625millionincapitalexpendituresincrementalto AmerenIllinoisaverageelectricdeliverycapitalexpenditures forcalendaryears2008through2010tomodernizeits distributionsystem.AmerenIllinoisissubjecttomonetary penaltiesif450additionaljobsinIllinoisarenotcreatedduringthepeakprogramyear.Theformularatemakingprocesswouldterminateiftheaverageresidentialrateincreasesbymorethan2.5%
annuallyfromJune2011throughMay2014.Theaverage residentialrateincludesgenerationservice,whichisoutside ofAmerenIllinoiscontrol,asAmerenIllinoisisrequiredto purchaseallofitspowerthroughprocurementprocesses administeredbytheIPA.Iftheperformance-basedformula rateprocessisterminated,AmerenIllinoiswouldbe requiredtoestablishfutureratesusingatraditionalrate proceedingwiththeICC,whichmaynotresultinratesthat produceafullortimelyrecoveryofcostsoranadequate returnoninvestments.Unlessextended,theIEIMAformula ratemakingprocessexpiresin2017.EnergyconservationandenergyefficiencyeffortscouldhaveamaterialadverseeffectontheAmeren Companiesresultsofoperations,financialposition,and
liquidity.Regulatoryandlegislativebodieshaveproposedorintroducedrequirementsandincentivestoreduceenergy consumption.Conservationandenergyefficiencyprograms aredesignedtoreduceenergydemand.Unlessthereisa regulatorysolution,decliningusagewillresultinan underrecoveryoffixedcostsatourrate-regulatedbusiness.
Areductioninenergydemandcouldhaveamaterial adverseeffectontheAmerenCompaniesresultsof operations,financialposition,andliquidity.Wearesubjecttovariousenvironmentallawsandregulationsthatrequiresignificantcapitalexpendituresorcouldresultinclosureoffacilities,couldincreaseouroperatingcosts,andcouldmateriallyadverselyinfluence orlimitourresultsofoperations,financialposition,and liquidity,orexposeustofinesandliabilities.Wearesubjecttovariousenvironmentallawsandregulationsenforcedbyfederal,stateandlocalauthorities.
Fromthebeginningphasesofsitinganddevelopmenttothe ongoingoperationofexistingornewelectricgenerating, transmissionanddistributionfacilitiesandnaturalgas storage,transmissionanddistributionfacilities,our activitiesinvolvecompliancewithdiverseenvironmental lawsandregulations.Theselawsandregulationsaddress emissions,impactstoair,landandwater,noise,protected naturalandculturalresources(suchaswetlands, 18 endangeredspeciesandotherprotectedwildlife,andarcheologicalandhistoricalresources),andchemicaland wastehandling.Complexandlengthyprocessesare requiredtoobtainapprovals,permits,orlicensesfornew, existing,ormodifiedfacilities.Additionally,theuseand handlingofvariouschemicalsorhazardousmaterials (includingwastes)requiresreleasepreventionplansand emergencyresponseprocedures.Wearealsosubjecttoliabilityunderenvironmentallawsforremediatingenvironmentalcontaminationof propertynoworformerlyownedbyusorbyour predecessors,aswellaspropertycontaminatedby hazardoussubstancesthatwegenerated.Suchsitesinclude MGPsitesandthird-partysites,suchaslandfills.
Additionally,privateindividualsmayseektoenforce environmentallawsandregulationsagainstusandcould allegeinjuryfromexposuretohazardousmaterials.Inadditiontoexistinglawsandregulations,includingtheIllinoisMPSthatappliestoourenergycentersin Illinois,theEPAisdevelopingnumerousnewenvironmental regulationsthatwillhaveasignificantimpactontheelectric utilityindustry.Theseregulationscouldbeparticularly burdensomeforcertaincompanies,includingAmeren, AmerenMissouriandGenco,thatoperatecoal-firedplants.
Thesenewregulationsmaybelitigated,sothetimingof theirultimateimplementationisuncertain,asevidencedby thestayoftheCSAPRbytheUnitedStatesCourtofAppeals fortheDistrictofColumbiaonDecember30,2011.Amerenalsomaybesubjecttorisksinconnectionwithchangingorconflictinginterpretationsofexistinglawsand regulations.TheEPAisengagedinanenforcementinitiative todeterminewhethercoal-firedpowerplantsfailedto complywiththerequirementsoftheNSRandNSPS provisionsundertheCleanAirActwhentheplants implementedmodifications.Followingtheissuanceofa NoticeofViolation,inJanuary2011,theDepartmentof JusticeonbehalfoftheEPAfiledacomplaintagainst AmerenMissouriintheUnitedStatesDistrictCourtforthe EasternDistrictofMissouri.TheEPAscomplaintalleges thatinperformingprojectsatitsRushIslandcoal-fired energycenter,AmerenMissouriviolatedprovisionsofthe CleanAirActandMissourilaw.InJanuary2012,theUnited StatesDistrictCourtgranted,inpart,AmerenMissouris motiontodismissvariousaspectsoftheEPAspenalty claims.TheEPAsclaimsforinjunctiverelief,includingto requiretheinstallationofpollutioncontrolequipment, remain.Atpresent,thecomplaintdoesnotincludeAmeren Missourisothercoal-firedenergycenters,buttheEPAhas issuedNoticesofViolationunderitsNSRenforcement initiativeagainstthecompanysLabadie,Meramec,and Siouxcoal-firedenergycenters.Litigationofthismatter couldtakemanyyearstoresolve.Anoutcomeinthismatter adversetoAmerenMissouricouldrequiresubstantial capitalexpendituresandthepaymentofsubstantial penalties,neitherofwhichcanbedeterminedatthistime.
Suchexpenditurescouldaffectunitretirementand replacementdecisions.Ameren,AmerenMissouriandGencohaveincurredandexpecttoincursignificantcostsrelatedto environmentalcomplianceandsiteremediation.New environmentalregulations,futureenvironmental regulations,voluntarycomplianceguidelines,enforcement initiatives,orlegislationcouldresultinasignificantincrease incapitalexpendituresandoperatingcosts,decreased revenues,increasedfinancingrequirements,penalties, fines,orclosureoffacilitiesforAmeren,AmerenMissouri andGenco.Actionsrequiredtoensurethatourfacilitiesand operationsareincompliancewithenvironmentallawsand regulationscouldbeprohibitivelyexpensive.Asaresult, environmentalregulationscouldrequireustocloseorto significantlyaltertheoperationofourenergycenters,which couldhaveanadverseeffectonourresultsofoperations, financialposition,andliquidity,includingtheimpairmentof plantassets.AlthoughcostsincurredbyAmerenMissouri toensureitsfacilitiesareincompliancewithenvironmental lawsandregulationswouldbeeligibleforrecoveryinrates overtime,subjecttoMoPSCapprovalinarateproceeding, thereisnosimilarcostrecoverymechanismforGencoor forAmerensMerchantGenerationbusinesssegment.We areunabletopredicttheultimateimpactofthesematters onourresultsofoperations,financialposition,andliquidity.FuturelimitsongreenhousegasemissionswouldlikelyrequireAmeren,AmerenMissouriandGencoto incursignificantincreasesincapitalexpendituresand operatingcosts,which,ifexcessive,couldresultinthe closuresofcoal-firedenergycenters,impairmentof assets,orotherwisemateriallyadverselyaffectour resultsofoperations,financialposition,andliquidity.Stateandfederalauthorities,includingtheUnitedStatesCongress,haveconsideredinitiativestolimit greenhousegasemissionsandtoaddressglobalclimate change.Potentialimpactsfromanyclimatechange legislationorregulationcouldvary,dependingupon proposedCO 2emissionlimits,thetimingofimplementationofthoselimits,themethodofdistributinganyallowances, thedegreetowhichoffsetsareallowedandavailable,and provisionsforcost-containmentmeasures,suchasa safetyvalveprovisionthatprovidesamaximumpricefor emissionallowances.Asaresultofourdiversefuel portfolio,ouremissionsofgreenhousegasesvaryamong ourenergycenters,butcoal-firedpowerplantsare significantsourcesofCO 2.Theenactmentofaclimatechangelawcouldresultinasignificantriseinhousehold costsandratesforelectricitycouldrisesignificantly.The burdencouldfallparticularlyhardonelectricityconsumers andupontheeconomyintheMidwestbecauseofthe regionsrelianceonelectricitygeneratedbycoal-fired powerplants.Futurefederalandstatelegislationorregulationsthatmandatelimitsontheemissionofgreenhousegaseswould likelyresultinsignificantincreasesincapitalexpenditures andoperatingcosts,which,inturn,couldleadtoincreased liquidityneedsandhigherfinancingcosts.Moreover,tothe extentAmerenMissourirequestsrecoveryofthesecosts 19 throughrates,itsregulatorsmightdenysomeorallof,ordefertimelyrecoveryof,thesecosts.Excessivecoststo complywithfuturelegislationorregulationsmightforce Ameren,AmerenMissouriandGencotoclosesomecoal-firedenergycentersearlierthanplanned,whichcouldlead topossibleimpairmentofassetsandreducedrevenues.As aresult,mandatorylimitscouldhaveamaterialadverse impactonAmerens,AmerenMissouris,andGencos resultsofoperations,financialposition,andliquidity.Theconstructionof,andcapitalimprovementsto,Amerens,AmerenMissourisandAmerenIllinois electricandnaturalgasutilityinfrastructureaswellasto AmerensandGencosmerchantgenerationfacilities involvesubstantialrisks.Theserisksincludeescalating costs,unsatisfactoryperformancebytheprojectswhen completed,theinabilitytocompleteprojectsas scheduled,costdisallowancesbyregulatorsandthe inabilitytoearnareasonablereturnoninvestedcapital, anyofwhichcouldresultinhighercostsandtheclosure offacilities.Overthenextfiveyears,theAmerenCompanieswillincursignificantcapitalexpenditurestocomplywith existingandknownenvironmentalregulationsandtomake investmentsintheirelectricandnaturalgasutility infrastructureandtheirmerchantgenerationfacilities.The AmerenCompaniesestimatethattheywillincurupto
$8.3billion(AmerenMissouri-upto$3.6billion;Ameren Illinois-upto$3.3billion;Genco-upto$0.4billion; other-upto$1.0billion)ofcapitalexpendituresduringthe period2012through2016.Theseexpensesinclude constructionexpenditures,capitalizedinterestorallowance forfundsusedduringconstruction,compliancewith environmentalstandards,andcompliancewiththe requirementsoftheIEIMA.InvestmentsinAmerensregulatedoperationsareexpectedtoberecoverablefromratepayers,butaresubject toprudencyreviewsandregulatorylag.Therecoverability ofamountsexpendedinmerchantgenerationoperations willdependuponmarketpricesforcapacityandenergy.TheabilityoftheAmerenCompaniestocompletefacilitiesunderconstructionsuccessfully,andtocomplete futureprojectswithinestablishedestimates,iscontingent uponmanyvariablesandsubjecttosubstantialrisks.These variablesinclude,butarenotlimitedto,project managementexpertiseandescalatingcostsformaterials, labor,andenvironmentalcompliance.Delaysinobtaining permits,shortagesinmaterialsandqualifiedlabor, suppliersandcontractorswhodonotperformasrequired undertheircontracts,changesinthescopeandtimingof projects,theinabilitytoraisecapitalonfavorableterms,or othereventsbeyondourcontrolthatcouldoccurmay materiallyaffecttheschedule,cost,andperformanceof theseprojects.Withrespecttocapitalspentforpollution controlequipment,thereisariskthatelectricgenerating plantswillnotbepermittedtocontinuetooperateif pollutioncontrolequipmentisnotinstalledbyprescribed deadlinesordoesnotperformasexpected.Shouldanysuchconstructioneffortsbeunsuccessful,theAmerenCompaniescouldbesubjecttoadditionalcostsandtothe lossoftheirinvestmentintheprojectorfacility.The AmerenCompaniesmayalsoberequiredtopurchase electricityfortheircustomersuntiltheprojectsare completed.Alloftheserisksmayhaveamaterialadverse effectontheAmerenCompaniesresultsofoperations, financialposition,andliquidity.Ourcounterpartiesmaynotmeettheirobligationsto us.Weareexposedtotheriskthatcounterpartiestovariousarrangementswhooweusmoney,credit,energy, coal,orothercommoditiesorserviceswillnotbeableto performtheirobligationsor,withrespecttoourcredit facilities,willfailtohonortheircommitments.Shouldthe counterpartiestocommodityarrangementsfailtoperform, wemightbeforcedtoreplaceortoselltheunderlying commitmentatthen-currentmarketprices.Shouldthelendersunderourcreditfacilitiesfailtoperform,thelevelofborrowingcapacityunderthosearrangementswould decrease,unlesswewereabletofindreplacementlenderstoassumethenonperforminglenderscommitment.Insuchanevent,wemightincurlosses,orourresultsof operations,financialposition,andliquiditycouldotherwise beadverselyaffected.CertainoftheAmerenCompanieshaveobligationstootherAmerenCompaniesorotherAmerensubsidiariesasa resultoftransactionsinvolvingenergy,coal,other commoditiesandservices,borrowingfromthemoney pools,andasaresultofhedgingtransactions.Ifone Amerenentityfailedtoperformunderanyofthese arrangements,otherAmerenentitiesmightincurlosses.
Theirresultsofoperations,financialposition,andliquidity couldbeadverselyaffected,resultinginthenondefaulting Amerenentitybeingunabletomeetitsobligations, includingtounrelatedthirdparties.Increasingcostsassociatedwithourdefinedbenefitretirementandpostretirementplans,healthcareplans, andotheremployeebenefitscouldmateriallyadversely affectourresultsofoperations,financialposition,and
liquidity.Weofferdefinedbenefitretirementandpostretirementplansthatcoversubstantiallyallofouremployees.
Assumptionsrelatedtofuturecosts,returnson investments,interestrates,andotheractuarialmattershave asignificantimpactonourearningsandfunding requirements.Amerenexpectstofunditspensionplansata levelequaltothegreaterofthepensionexpenseorthe legallyrequiredminimumcontribution.Considering AmerensassumptionsatDecember31,2011,its investmentperformancein2011,anditspensionfunding policy,Amerenexpectstomakeannualcontributionsof
$90millionto$150millionineachofthenextfiveyears, withaggregateestimatedcontributionsof$580million.We expectAmerenMissouris,AmerenIllinois,andGencos portionofthefuturefundingrequirementstobe51%,33%,
and12%,respectively.Theseamountsareestimates.They 20 maychangewithactualinvestmentperformance,changesininterestrates,changesinourassumptions,changesin governmentregulations,andanyvoluntarycontributions.Inadditiontothecostsofourretirementplans,thecostsofprovidinghealthcarebenefitstoouremployees andretireeshaveincreasedinrecentyears.Webelievethat ouremployeebenefitcosts,includingcostsofhealthcare plansforouremployeesandformeremployees,will continuetorise.Theincreasingcostsandfunding requirementsassociatedwithourdefinedbenefitretirement plans,healthcareplans,andotheremployeebenefitscould increaseourfinancingneedsandotherwisematerially adverselyaffectourresultsofoperations,financialposition, andliquidity.Ourelectricgenerating,transmissionanddistributionfacilitiesaresubjecttooperationalrisksthat couldmateriallyadverselyaffectourresultsof operations,financialposition,andliquidity.TheAmerenCompaniesfinancialperformancedependsonthesuccessfuloperationofelectricgenerating, transmission,anddistributionfacilities.Operationofelectric generating,transmission,anddistributionfacilitiesinvolves manyrisks,including:
facilityshutdownsduetooperatorerrororafailureofequipmentorprocesses; longer-than-anticipatedmaintenanceoutages; oldergeneratingequipmentmayrequiresignificantexpenditurestokeepitoperatingatpeakefficiency; disruptionsinthedeliveryoffuelorlackofadequateinventories,includingultra-low-sulfurcoalusedfor AmerenMissouriscompliancewithenvironmental
regulations; lackofwaterforcoolingplantoperations; labordisputes; inabilitytocomplywithregulatoryorpermitrequirements,includingthoserelatingtoenvironmental
contamination; disruptionsinthedeliveryofelectricity,includingimpactsonusorourcustomers; handlingandstorageoffossil-fuelcombustionbyproducts,suchasCCR; unusualoradverseweatherconditions,includingseverestorms,droughts,floodsandtornados; aworkplaceaccidentthatmightresultininjuryorlossoflife,extensivepropertydamage,orenvironmental
damage;cybersecurityrisk,includinglossofoperationalcontrolofourenergycentersandourelectricandnaturalgas transmissionanddistributionsystemsand/orlossof data,suchasutilitycustomerdata,account information,andintellectualpropertythroughinsideror outsideractions; catastrophiceventssuchasfires,explosions,pandemichealthevents,orothersimilaroccurrences; limitationsonamountsofinsuranceavailabletocoverlossesthatmightariseinconnectionwithoperatingour electricgenerating,transmission,anddistribution facilities;and otherunanticipatedoperationsandmaintenanceexpensesandliabilities.Wearesubjecttofederalregulatorycomplianceandproceedings,whichincreaseourriskofregulatory penaltiesandothersanctions.TheEnergyPolicyActof2005increasedFERCscivilpenaltyauthorityforviolationofFERCstatutes,rules,and orders,includingFERCReliabilityStandards.FERCcan imposepenaltiesof$1millionperviolationperday.Under theEnergyPolicyActof2005,theAmerenCompanies,as ownersandoperatorsofbulkpowertransmissionsystems and/orelectricgenerationfacilities,aresubjectto mandatoryNERCreliabilitystandards,including cybersecuritystandards.Compliancewiththesemandatory reliabilitystandardsmaysubjecttheAmerenCompaniesto higheroperatingcostsandmayresultinincreasedcapital expenditures.IftheAmerenCompanieswerefoundnotto beincompliancewiththesemandatoryreliabilitystandards orotherFERCstatutes,rulesandorders,theAmeren Companiescouldincursubstantialmonetarypenaltiesand othersanctions,whichcouldadverselyaffectourresultsof operations,financialposition,andliquidity.Ournaturalgasdistributionandstorageactivitiesinvolvenumerousrisksthatmayresultinaccidentsand otheroperatingrisksandcoststhatcouldmaterially adverselyaffectourresultsofoperations,financial position,andliquidity.Inherentinournaturalgasdistributionandstorageactivitiesareavarietyofhazardsandoperatingrisks,such asleaks,accidentalexplosions,mechanicalproblemsand cybersecurityrisks,whichcouldcausesubstantialfinancial losses.Inaddition,theseriskscouldresultinseriousinjury toemployeesandnonemployees,lossofhumanlife, significantdamagetoproperty,environmentalpollution, andimpairmentofouroperations,whichinturncouldlead tosubstantiallossesforus.Inaccordancewithcustomary industrypractice,wemaintaininsuranceagainstsome,but notall,oftheserisksandlosses.Thelocationof distributionlinesandstoragefacilitiesnearpopulatedareas, includingresidentialareas,commercialbusinesscenters, industrialsites,andotherpublicgatheringplaces,could increasethelevelofdamagesresultingfromtheserisks.
Theoccurrenceofanyoftheseeventsnotfullycoveredby insurancecouldmateriallyadverselyaffectourresultsof operations,financialposition,andliquidity.EventhoughagreementshavebeenreachedwiththestateofMissouriandtheFERC,thebreachoftheupper reservoirofAmerenMissourisTaumSaukpumped-storagehydroelectricenergycentercouldcontinueto haveamaterialadverseeffectonAmerensandAmeren Missourisresultsofoperations,liquidity,andfinancial
condition.InDecember2005,therewasabreachoftheupperreservoiratAmerenMissourisTaumSaukpumped-storage hydroelectricenergycenter.Thisresultedinsignificant floodinginthelocalarea,whichdamagedastatepark.
21 AmerenMissourisettledwithFERCandthestateofMissouriallissuesassociatedwiththeDecember2005 TaumSaukincident.AmerenMissourihadliabilityinsurancecoveragefortheTaumSaukincident,subjecttocertainlimitsand deductibles.InJune2010,AmerenMissourisuedoneofits liabilityinsuranceprovidersclaimingtheinsurance companybreacheditsdutytoindemnifyAmerenMissouri forthelossesexperiencedfromtheincident.Amerensand AmerenMissourisresultsofoperations,financialposition andliquiditycouldbeadverselyaffectedifAmeren Missourisremainingliabilityinsuranceclaimsof
$68millionasofDecember31,2011,arenotpaidby
insurers.AmerenMissourirequestedtherecoveryofallcostsofenhancements,orcoststhatwouldhavebeenincurred absentthebreach,relatedtotherebuildingoftheTaum Saukenergycenterinexcessofamountsrecoveredfrom propertyinsurance.InitsJuly2011electricrateorder,the MoPSCdisallowedAmerenMissourisrequest.
Consequently,in2011,AmerenMissourirecordedapretax chargetoearningsof$89million.AmerenMissourihas appealedthisdisallowancetotheMissouriCourtof Appeals,WesternDistrict.AmerenMissouricannotpredict theultimateoutcomeofitsappeal.UntilAmerensremainingliabilityinsuranceclaimsandlitigationareresolved,weareunabletodeterminethetotal impactthebreachcouldhaveonAmerensandAmeren Missourisresultsofoperations,financialposition,and liquiditybeyondthoseamountsalreadyrecognized.GencosandAERGselectricenergycentersmustcompeteforthesaleofenergyandcapacity,which exposesthemtopricerisks.AllofGencosandAERGsenergycenterscompeteforthesaleofenergyandcapacityinthecompetitiveenergy
markets.Totheextentthatelectricitygeneratedbytheseenergycentersisnotunderafixed-pricecontracttobesold,the revenuesandresultsofoperationsoftheseMerchant Generationsubsidiariesgenerallydependonthepricesthat canbeobtainedforenergyandcapacityinIllinoisand adjacentmarketsbyMarketingCompany.Marketpricesforenergyandcapacitymayfluctuatesubstantially,sometimesoverrelativelyshortperiodsof time,andatothertimesexperiencesustainedincreasesor decreases.Demandforelectricityandfuelcanfluctuate dramatically,creatingperiodsofsubstantialundersupplyor oversupply.Duringperiodsofoversupply,pricesmightbe depressed.Also,attimeslegislatorsorregulatorswith jurisdictionoverwholesaleandretailenergycommodityand transportationratesmayimposepricelimitations,bidding rules,andothermechanismstoaddressvolatilityandother issuesinthesemarkets.Forpowerproductssoldinadvance,contractpricesareinfluencedbothbymarketconditionsandbycontracttermssuchasdamageprovisions,creditsupportrequirements,andthenumberofavailablecounterparties interestedincontractingforthedesiredforwardperiod.
Dependingondifferencesbetweenmarketfactorsatthe timeofcontractingversuscurrentconditions,Marketing Companyscontractportfoliomayhaveaveragecontract pricesgreaterthanorlessthancurrentmarketprices, includingattheexpirationofthecontracts,whichcould significantlyaffectAmerensandGencosresultsof operations,financialconditionandliquidity.Marketpricesforpowerhavedecreasedoverthepastthreeyears.During2012,themarketpriceforpowerfor deliveryinthecurrentyearhasdeclinedbelow2011levels becauseoffactorssuchasdecliningnaturalgaspricesand thestayoftheCSAPR.Anyunhedgedforecastedgeneration willbeexposedtomarketpricesatthetimeofsale.Asa result,anynewphysicalorfinancialpowersalesmaybeat pricelevelslowerthanpreviouslyexperiencedandlower thanthevalueofexistinghedgedsales.Amongthefactorsthatcouldinfluencesuchprices(allofwhicharebeyondourcontroltoasignificantdegree)are:
currentandfuturedeliveredmarketpricesfornaturalgas,coal,andrelatedtransportationcosts; currentandforwardpricesforthesaleofelectricity; currentandfuturepricesforemissionallowancesthatmayberequiredtooperatethefossilfuel-firedelectric energycentersincompliancewithenvironmentallaws andpermits; theextentofadditionalsuppliesofelectricenergyfromcurrentcompetitorsornewmarketentrants; theregulatoryandmarketstructuresdevelopedforevolvingMidwestenergymarkets,includingacapacity marketinMISO; changesenactedbytheIllinoislegislature,theICC,theIPA,orothergovernmentagencieswithrespectto powerprocurementprocedures; thepotentialforreregulationofgenerationinsome states;futurepricingfor,andavailabilityof,servicesontransmissionsystems,andtheeffectofRTOsand exportenergytransmissionconstraints,whichcould limitourabilitytosellenergyinourmarkets; thegrowthrateordeclineinelectricityusageasaresultofpopulationchanges,regionaleconomicconditions, andtheimplementationofenergy-efficiencyand conservationprograms; climateconditionsintheMidwestmarketandmajornaturaldisasters;and environmentallawsandregulationsordelaysintheireffectivedates.
22 AmerenMissourisownershipandoperationofanuclearenergycentercreatesbusiness,financial,and wastedisposalrisks.AmerenMissourisownershipoftheCallawayenergycentersubjectsittotherisksofnucleargeneration,which includethefollowing:
potentialharmfuleffectsontheenvironmentandhumanhealthresultingfromtheoperationofnuclear facilitiesandthestorage,handlinganddisposalof radioactivematerials; thelackofapermanentwastestoragesite; limitationsontheamountsandtypesofinsurancecommerciallyavailabletocoverlossesthatmightarise inconnectionwiththeCallawayenergycenterorother UnitedStatesnuclearoperations; uncertaintieswithrespecttocontingenciesandassessmentamountsifinsurancecoverageis
inadequate; publicandgovernmentalconcernsovertheadequacyofsecurityatnuclearenergycenters; uncertaintieswithrespecttothetechnologicalandfinancialaspectsofdecommissioningnuclearenergy centersattheendoftheirlicensedlives(Ameren MissourihassubmittedanapplicationwiththeNRCto extendtheCallawayenergycentersoperatinglicense from2024to2044);
limitedavailabilityoffuelsupply;and costlyandextendedoutagesforscheduledorunscheduledmaintenanceandrefueling.TheNRChasbroadauthorityunderfederallawtoimposelicensingandsafetyrequirementsfornuclear energycenters.Intheeventofnoncompliance,theNRChas theauthoritytoimposefinesorshutdownaunit,orboth, dependinguponitsassessmentoftheseverityofthe situation,untilcomplianceisachieved.Revisedsafety requirementspromulgatedfromtimetotimebytheNRC couldnecessitatesubstantialcapitalexpendituresatnuclear energycenterssuchasAmerenMissouris.Inaddition,ifa seriousnuclearincidentweretooccur,itcouldhavea materialbutindeterminableadverseeffectonAmeren Missourisresultsofoperations,financialcondition,and liquidity.Amajorincidentatanuclearenergycenter anywhereintheworldcouldcausetheNRCtolimitor prohibittheoperationorrelicensingofanydomestic nuclearunit.Anincidentatanuclearenergycenter anywhereintheworldalsocouldcausetheNRCtoimpose additionalconditionsorrequirementsontheindustry, whichcouldincreasecostsandresultinadditionalcapital expenditures.Forexample,theearthquakein2011that affectednuclearplantsinJapanisexpectedtoresultin regulatorychangesintheUnitedStatesthatmayimpose additionalcostsonallUnitedStatesnuclearplants.Ourenergyriskmanagementstrategiesmaynotbeeffectiveinmanagingfuelandelectricityprocurement andpricingrisks,whichcouldresultinunanticipated liabilitiesorincreasedvolatilityinourearningsandcash
flows.Weareexposedtochangesinmarketpricesfornaturalgas,fuel,power,emissionallowances,renewableenergy credits,andtransmissioncongestion.Pricesfornatural gas,fuel,power,emissionallowancesandrenewable energycreditsmayfluctuatesubstantiallyoverrelatively shortperiodsoftime,andatothertimesexhibitsustained increasesordecreases,andexposeustocommodityprice risk.Weuseshort-termandlong-termpurchaseandsales contractsinadditiontoderivativessuchasforward contracts,futurescontracts,options,andswapstomanage theserisks.Weattempttomanageourriskassociatedwith theseactivitiesthroughenforcementofestablishedrisk limitsandriskmanagementprocedures.Wecannotensure thatthesestrategieswillbesuccessfulinmanagingour pricingriskorthattheywillnotresultinnetliabilities becauseoffuturevolatilityinthesemarkets.Althoughweroutinelyenterintocontractstohedgeourexposuretotherisksofdemandandchangesin commodityprices,wedonothedgetheentireexposureof ouroperationsfromcommoditypricevolatility.
Furthermore,ourabilitytohedgeourexposureto commoditypricevolatilitydependsonliquidcommodity markets.Totheextentthatcommoditymarketsareilliquid, wemaynotbeabletoexecuteourriskmanagement strategies,whichcouldresultingreaterunhedgedpositions thanwewouldpreferatagiventime.Totheextentthat unhedgedpositionsexist,fluctuatingcommoditypricescan adverselyaffectourresultsofoperations,financialposition, andliquidity.Ourfacilitiesareconsideredcriticalenergyinfrastructureandmaythereforebetargetsofactsof
terrorism.Likeotherelectricandnaturalgasutilitiesandothermerchantelectricgenerators,ourenergycenters,fuel storagefacilities,andtransmissionanddistributionfacilities maybetargetsofterroristactivities,includingcybersecurity attacks,thatcouldresultindisruptionofourabilityto produceordistributesomeportionofourenergyproducts.
Anysuchdisruptioncouldresultinasignificantdecreasein revenuesorsignificantadditionalcostsforrepair,which couldhaveamaterialadverseeffectonourresultsof operations,financialposition,andliquidity.Ourbusinessesaredependentonourabilitytoaccessthecapitalmarketssuccessfully.Wemaynot haveaccesstosufficientcapitalintheamountsandat thetimesneeded.Weuseshort-termandlong-termdebtasasignificantsourceofliquidityandfundingforcapitalrequirementsnot satisfiedbyouroperatingcashflow,includingrequirements relatedtofutureenvironmentalcomplianceandcapital expendituresrequiredbytheIEIMA.Asaresultofrising costsandincreasedcapitalandoperationsandmaintenance 23 expenditures,coupledwithregulatorylag,weexpecttocontinuetorelyonshort-termandlong-termdebt financing.Theinabilitytoraisedebtorequitycapitalon favorableterms,oratall,couldnegativelyaffectourability tomaintainandtoexpandourbusinesses.Afterassessing ourcurrentoperatingperformance,liquidity,andcredit ratings,webelievethatAmerenanditsrate-regulated businesseswillcontinuetohaveaccesstothecapital markets.However,eventsbeyondourcontrol,suchasa recessionorextremevolatilityinglobaldebtorequity capitalandcreditmarkets,maycreateuncertaintythat couldincreaseourcostofcapitalorimpairoreliminateour abilitytoaccessthedebt,equityorcreditmarkets,including ourabilitytodrawonbankcreditfacilities.Basedon projectionsasofDecember31,2011,ofGencosoperating resultsandcashflows,weexpectthat,bytheendofthe firstquarterof2013,Gencosinterestcoverageratiowillbe lessthantheminimumratiorequiredunderitsindenturefor thecompanytoborrowadditionalfundsfromexternal, third-partysources.Aninabilitytoraisedebtcould adverselyimpactGencosliquidity.Anyadversechangein theAmerenCompaniescreditratingsmayreduceaccessto capitalandtriggeradditionalcollateralpostingsand prepayments.Suchchangesmayalsoincreasethecostof borrowingandfuel,powerandnaturalgassupply,among otherthings,whichcouldhaveamaterialadverseeffecton ourresultsofoperations,financialposition,andliquidity.
CertainoftheAmerenCompaniesrely,inpart,onAmeren foraccesstocapital.CircumstancesthatlimitAmerens accesstocapital,includingthoserelatingtoitsother subsidiaries,couldimpairitsabilitytoprovidethose AmerenCompanieswithneededcapital.Inaddition, borrowingsdirectlyfromAmerenandfromtheutilityand non-state-regulatedsubsidiarymoneypoolsaresubjectto Amerenscontrol,andanyborrowingsaredependenton considerationbyAmerenofthefactsandcircumstances existingatthetimeofanyborrowingrequest.Amerensholdingcompanystructurecouldlimititsabilitytopaycommonstockdividendsandtoserviceits debtobligations.Amerenisaholdingcompany;therefore,itsprimaryassetsarethecommonstockofitssubsidiaries.Asaresult, Amerensabilitytopaydividendsonitscommonstock dependsontheearningsofitssubsidiariesandtheabilityof itssubsidiariestopaydividendsorotherwisetransferfunds toAmeren.Similarly,Amerensabilitytoserviceitsdebt obligationsisalsodependentupontheearningsofoperatingsubsidiariesandthedistributionofthoseearnings andotherpayments,includingpaymentsofprincipalandinterestunderintercompanyindebtedness.Thepaymentof dividendstoAmerenbyitssubsidiariesinturndependson theirresultsofoperationsandcashflowsandotheritems affectingretainedearnings.Amerenssubsidiariesare separateanddistinctlegalentitiesandhavenoobligation, contingentorotherwise,topayanydividendsormakeany otherdistributions(exceptforpaymentsrequiredpursuant tothetermsofintercompanyborrowingarrangements)to Ameren.CertainoftheAmerenCompaniesfinancing agreementsandarticlesofincorporation,inadditionto certainstatutoryandregulatoryrequirements,mayimpose restrictionsontheabilityofsuchAmerenCompaniesto transferfundstoAmerenintheformofcashdividends, loansoradvances.Failuretoretainandattractkeyofficersandotherskilledprofessionalandtechnicalemployeescouldhave anadverseeffectonouroperations.Ourbusinessesdependuponourabilitytoemployandretainkeyofficersandotherskilledprofessionaland technicalemployees.Asignificantportionofourworkforce isnearingretirement,includingmanyemployeeswith specializedskillssuchasmaintainingandservicingour electricandnaturalgasinfrastructureandoperatingour energycenters.Anyinabilitytoretainandrecruitqualified employeescouldadverselyaffectourresultsofoperations.ITEM1B.UNRESOLVEDSTAFFCOMMENTS.
None.ITEM2.PROPERTIES.Forinformationonourprincipalproperties,seethegeneratingfacilitiestablebelow.SeealsoLiquidityandCapitalResourcesandRegulatoryMattersinManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperations underPartII,Item7,ofthisreportforanydiscussionofplannedadditions,replacementsortransfers.SeealsoNote5-Long-termDebtandEquityFinancings,andNote15-CommitmentsandContingenciesunderPartII,Item8,ofthisreport.
24 Thefollowingtableshowswhatthecapabilityofourenergycentersisanticipatedtobeatthetimeofourexpected2012peaksummerelectricaldemand:PrimaryFuelSourceEnergyCenterLocationNetKilowattCapability (a)AmerenMissouri:
Coal...............................LabadieFranklinCounty,Mo.2,412,000RushIslandJeffersonCounty,Mo.1,212,000SiouxSt.CharlesCounty,Mo.966,000MeramecSt.LouisCounty,Mo.836,000Totalcoal...........................
5,426,000 Nuclear............................CallawayCallawayCounty,Mo.1,190,000 Hydroelectric
........................OsageLakeside,Mo.240,000KeokukKeokuk,Ia.141,000Totalhydroelectric
....................
381,000 Pumped-storage
.....................TaumSaukReynoldsCounty,Mo.440,000Oil(CTs)...........................MeramecSt.LouisCounty,Mo.59,000FairgroundsJeffersonCity,Mo.55,000MexicoMexico,Mo.54,000MoberlyMoberly,Mo.54,000MoreauJeffersonCity,Mo.54,000HowardBendSt.LouisCounty,Mo.39,000Totaloil............................
315,000Naturalgas(CTs)
....................
Audrain (b)AudrainCounty,Mo.600,000 Venice (c)Venice,Ill.491,000GooseCreekPiattCounty,Ill.432,000PinckneyvillePinckneyville,Ill.316,000RaccoonCreekClayCounty,Ill.300,000 Kinmundy (c)Kinmundy,Ill.208,000PenoCreek (b)(c)BowlingGreen,Mo.188,000 Meramec (c)St.LouisCounty,Mo.49,000KirksvilleKirksville,Mo.13,000Totalnaturalgas
.....................
2,597,000Methanegas(CTs)
...................MarylandHeightsMarylandHeights,Mo.6,000TotalAmerenMissouri
..............
10,355,000MerchantGeneration:
Genco:
Coal...............................NewtonNewton,Ill.1,198,000Joppa(EEI)(d)Joppa,Ill.1,002,000CoffeenCoffeen,Ill.895,000Totalcoal...........................
3,095,000Naturalgas(CTs)
....................GrandTowerGrandTower,Ill.478,000ElginElgin,Ill.460,000GibsonCity (c)GibsonCity,Ill.228,000Joppa7BJoppa,Ill.108,000Joppa(EEI)(d)Joppa,Ill.74,000Totalnaturalgas
.....................
1,348,000TotalGenco
.......................
4,443,000 AERG: Coal...............................E.D.EdwardsBartonville,Ill.650,000DuckCreekCanton,Ill.410,000TotalAERG.......................
1,060,000TotalMerchantGeneration
...........
5,503,000TotalAmeren
......................
15,858,000(a)NetKilowattCapabilityisthegeneratingcapacityavailablefordispatchfromtheenergycenterintotheelectrictransmissiongrid.(b)ThereareeconomicdevelopmentleasearrangementsapplicabletotheseCTs.
(c)TheseCTshavethecapabilitytooperateoneitheroilornaturalgas(dualfuel).
(d)Gencoownsan80%interestinEEI.ThistablereflectsthefullcapabilityofEEIsfacilities.
25 Thefollowingtablepresentselectricandnaturalgasutility-relatedpropertiesforAmerenMissouriandAmeren IllinoisasofDecember31,2011:
Ameren Missouri Ameren IllinoisCircuitmilesofelectrictransmissionlines (a)...2,9564,506Circuitmilesofelectricdistributionlines
......33,25645,884Circuitmilesofelectricdistributionlines underground.........................23%15%Milesofnaturalgastransmissionanddistributionmains
.....................3,27518,126Propane-airplants.......................1-Undergroundgasstoragefields.............-12Billioncubicfeetoftotalworkingcapacityofundergroundgasstoragefields...........-24(a)ATXIandEEIown29milesand42milesoftransmissionlines,respectively,notreflectedinthistable.Ourotherpropertiesincludeofficebuildings,warehouses,garages,andrepairshops.Withonlyafewexceptions,wehavefeetitletoallprincipalplantsandotherunitsofpropertymaterialtothe operationofourbusinesses,andtotherealpropertyon whichsuchfacilitiesarelocated(subjecttomortgageliens securingouroutstandingfirstmortgagebondsandto certainpermittedliensandjudgmentliens).Theexceptions areasfollows:
AportionofAmerenMissourisOsageenergycenterreservoir,certainfacilitiesatAmerenMissourisSioux energycenter,mostofAmerenMissourisPenoCreek andAudrainCTenergycenters,certainsubstations, andmosttransmissionanddistributionlinesand naturalgasmainsaresituatedonlandsoccupiedunder leases,easements,franchises,licenses,orpermits.The UnitedStatesorthestateofMissourimayownormay haveparamountrightstocertainlandslyinginthebed oftheOsageRiverorlocatedbetweentheinnerand outerharborlinesoftheMississippiRiveronwhich certainofAmerenMissourisenergycentersandother propertiesarelocated.
TheUnitedStates,thestateofIllinois,thestateofIowa,orthecityofKeokuk,Iowa,mayownormayhave paramountrightswithrespecttocertainlandslyingin thebedoftheMississippiRiveronwhichaportionof AmerenMissourisKeokukenergycenterislocated.SubstantiallyallofthepropertiesandplantofAmerenMissouriandAmerenIllinoisaresubjecttothefirstliensof theindenturessecuringtheirmortgagebonds.AmerenMissourihasconveyedmostofitsPenoCreekCTenergycentertothecityofBowlingGreen,Missouri,and leasedtheenergycenterbackfromthecitythrough2022.
Underthetermsofthiscapitallease,AmerenMissouriis responsibleforalloperationandmaintenancefortheenergy center.Ownershipoftheenergycenterwilltransferto AmerenMissouriattheexpirationofthelease,atwhichtime thepropertyandplantwillbecomesubjecttothelienofany outstandingAmerenMissourifirstmortgagebondindenture.AmerenMissourioperatesaCTenergycenterlocatedinAudrainCounty,Missouri.AmerenMissourihasrights andobligationsaslesseeoftheCTenergycenterundera long-termleasewithAudrainCounty.Theleasetermwill expireonDecember1,2023.Underthetermsofthiscapital lease,AmerenMissouriisresponsibleforalloperationand maintenancefortheenergycenter.Ownershipoftheenergy centerwilltransfertoAmerenMissouriattheexpirationof thelease,atwhichtimethepropertyandplantwillbecome subjecttothelienofanyoutstandingAmerenMissourifirst mortgagebondindenture.ITEM3.LEGALPROCEEDINGS.Weareinvolvedinlegalandadministrativeproceedingsbeforevariouscourtsandagencieswithrespecttomatters thatariseintheordinarycourseofbusiness,someofwhich involvesubstantialamountsofmoney.Webelievethatthe finaldispositionoftheseproceedings,exceptasotherwise disclosedinthisreport,willnothaveamaterialadverseeffect onourresultsofoperations,financialposition,orliquidity.
Riskoflossismitigated,insomecases,byinsuranceor contractualorstatutoryindemnification.Webelievethatwe haveestablishedappropriatereservesforpotentiallosses.
Materiallegalandadministrativeproceedings,whichare discussedinNote2-RateandRegulatoryMatters,andNote 15-CommitmentandContingenciesunderPartII,Item8,of thisreportandincorporatedhereinbyreference,includethe
following:
appealsoftheMoPSCs2010and2011electricrate orders;appealoftheMoPSCsApril2011FACprudencerevieworderandcompletionofthecurrentFACprudence
review;electricrateproceedingsforAmerenMissouripendingbeforetheMoPSCandforAmerenIllinoispending beforetheICC; FERClitigationtodeterminewholesaledistributionrevenuesforsevenofAmerenIllinoiswholesale
customers; AmerenMissourisappealtoFERCtocontestadditionalchargesunderapowerpurchaseagreementwith EntergyArkansas,Inc.;
theEPAsCleanAirAct-relatedlitigationfiledagainstAmerenMissouriandNSRinvestigationsatGencoand
AERG;remediationmattersassociatedwithMGPandwastedisposalsitesoftheAmerenCompanies; litigationassociatedwiththebreachoftheupperreservoiratAmerenMissourisTaumSaukpumped-storagehydroelectricenergycenter; litigationallegingthatCO 2emissionsfromseveralindustrialcompanies,includingAmerenMissouriand Genco,createdtheatmosphericconditionsthat intensifiedHurricaneKatrina; asbestos-relatedlitigationassociatedwithAmeren,AmerenMissouri,AmerenIllinoisandGenco;and GencoschallengebeforetheInformalConferenceBoardoftheIllinoisDepartmentofRevenueregarding theStatespositionthatEEIdidnotqualifyfor manufacturingtaxexemptionsfor2010transactions.
26 ITEM4.MINESAFETYDISCLOSURES.Notapplicable.EXECUTIVEOFFICERSOFTHEREGISTRANTS(ITEM401(b)OFREGULATIONS-K):TheexecutiveofficersoftheAmerenCompanies,includingmajorsubsidiaries,arelistedbelow,alongwiththeiragesasofDecember31,2011,allpositionsandofficesheldwiththeAmerenCompaniesasofDecember31,2011,(exceptasotherwisenotedbelow),tenureasofficer,andbusinessbackgroundforatleastthelastfiveyears.Someexecutiveofficers holdmultiplepositionswithintheAmerenCompanies;theirtitlesaregiveninthedescriptionoftheirbusinessexperience.AMERENCORPORATION:NameAgePositionsandOfficesHeldThomasR.Voss64Chairman,PresidentandChiefExecutiveOfficer,andDirectorVossjoinedAmerenMissouriin1969.HewaselectedseniorvicepresidentofAmerenMissouri,CIPS,andAmerenServicesin 1999,ofGencoin2001,ofCILCOin2003,andofIPin2004.In2003,VosswaselectedpresidentofGenco;herelinquished hispresidencyofthiscompanyin2004.In2006,hewaselectedexecutivevicepresidentofAmerenMissouri,CIPS,CILCO andIP.In2007,Vosswaselectedchairman,president,andchiefexecutiveofficerofAmerenMissouri.Herelinquishedhis positionsatCIPS,CILCOandIPin2007.In2009,VosswaselectedpresidentandchiefexecutiveofficerofAmeren;atthat time,herelinquishedhisotherpositions.In2010,theAmerenboardofdirectorselectedVosstothepositionofchairmanof theboard.HehasbeenamemberoftheAmerenboardsince2009.MartinJ.Lyons,Jr.45SeniorVicePresidentandChiefFinancialOfficerLyonsjoinedAmeren,AmerenMissouri,CIPS,Genco,andAmerenServicesin2001ascontroller.Hewaselectedcontrollerof CILCOin2003.HewasalsoelectedvicepresidentofAmeren,AmerenMissouri,CIPS,Genco,CILCO,andAmerenServicesin 2003andvicepresidentandcontrollerofIPin2004.In2007,hispositionsatAmerenMissouriwerechangedtovice presidentandprincipalaccountingofficer.In2008,Lyonswaselectedseniorvicepresidentandprincipalaccountingofficerof theAmerenCompanies.In2009,LyonswasalsoelectedchieffinancialofficeroftheAmerenCompanies.WiththeAmeren IllinoisMergerin2010,Lyonsremainedseniorvicepresident,chieffinancialofficerandprincipalaccountingofficeratAmeren
Illinois.GregoryL.Nelson54SeniorVicePresident,GeneralCounselandSecretaryNelsonjoinedAmerenMissouriin1995asamanagerinthetaxdepartmentandassumedasimilarpositionwithAmeren Servicesin1998.NelsonwaselectedvicepresidentandtaxcounselofAmerenServicesin1999andvicepresidentofAmeren Missouri,CIPS,CILCOandGencoin2003andofIPin2004.In2010,Nelsonwaselectedvicepresident,taxanddeputy generalcounselofAmerenServices.HeremainedvicepresidentofAmerenMissouri,CIPS,CILCO,IPandGenco.Withthe AmerenIllinoisMergerin2010,NelsonremainedvicepresidentatAmerenIllinois.EffectiveMarch2,2011,Nelsonwas electedtothepositionsofseniorvicepresidentandgeneralcounselofAmeren,AmerenMissouri,AmerenIllinois,Gencoand AmerenServices.EffectiveMay1,2011,Nelsonwaselectedtothepositionofsecretary.JerreE.Birdsong57VicePresidentandTreasurerBirdsongjoinedAmerenMissouriin1977andwaselectedtreasurerofAmerenMissouriin1993.Hewaselectedtreasurerof Ameren,CIPS,andAmerenServicesin1997andofGencoin2000.Inadditiontobeingtreasurer,in2001hewaselectedvice presidentatAmeren,AmerenMissouri,CIPS,AmerenServicesandGenco.Additionally,hewaselectedvicepresidentand treasurerofCILCOin2003andofIPin2004.WiththeAmerenIllinoisMergerin2010,Birdsong,remainedvicepresidentand treasureratAmerenIllinois.
27 SUBSIDIARIES:NameAgePositionsandOfficesHeldWarnerL.Baxter50Chairman,PresidentandChiefExecutiveOfficer(AmerenMissouri)BaxterjoinedAmerenMissouriin1995.Hewaselectedseniorvicepresident,finance,ofAmeren,AmerenMissouri,CIPS, AmerenServices,andGencoin2001andofCILCOin2003.Baxterwaselectedtothepositionsofexecutivevicepresidentand chieffinancialofficerofAmeren,AmerenMissouri,CIPS,Genco,CILCOandAmerenServicesin2003andofIPin2004.He waselectedchairman,president,chiefexecutiveofficerandchieffinancialofficerofAmerenServicesin2007.In2009,Baxter waselectedchairman,presidentandchiefexecutiveofficerofAmerenMissouri;atthattime,herelinquishedhisother
positions.MaureenA.Borkowski54Chairman,PresidentandChiefExecutiveOfficer(ATX)BorkowskijoinedAmerenMissouriin1981.Sheleftthecompanyin2000beforerejoiningAmerenin2005.Borkowskihasled Amerenstransmissionoperationssince2005asvicepresident,transmission,ofAmerenServices.In2010,Borkowskiwas electedpresidentandchiefexecutiveofficerofATX.EffectiveMarch2,2011,BorkowskiwaselectedchairmanofATX.
EffectiveApril26,2011,shewasalsoelectedseniorvicepresident,transmission,ofAmerenServices.ScottA.Cisel58Chairman,PresidentandChiefExecutiveOfficer(AmerenIllinois)CiseljoinedCILCOin1975.HewasnamedseniorvicepresidentandleaderofCILCOsSalesandMarketingBusinessUnitin 2001.CiselassumedthepositionsofvicepresidentandchiefoperatingofficerofCILCOin2003,uponAmerensacquisitionof thatcompany.In2004,CiselwaselectedvicepresidentofAmerenMissouriandpresidentandchiefoperatingofficerofCIPS, CILCOandIP.In2007,CiselwaselectedchairmanandchiefexecutiveofficerofCIPS,CILCOandIP,inadditiontohis positionaspresident.HerelinquishedhispositionatAmerenMissouriin2007.WiththeAmerenIllinoisMergerin2010,Cisel remainedchairman,presidentandchiefexecutiveofficeratAmerenIllinois.DanielF.Cole58Chairman,PresidentandChiefExecutiveOfficer(AmerenServices)ColejoinedAmerenMissouriin1976.HewaselectedseniorvicepresidentofAmerenMissouriandAmerenServicesin1999 andofCIPSin2001.HewaselectedpresidentofGencoin2001;herelinquishedthatpositionin2003.Hewaselectedsenior vicepresidentofCILCOin2003andofIPin2004.In2009,Colewaselectedchairman,presidentandchiefexecutiveofficerof AmerenServicesandremainedseniorvicepresidentofAmerenMissouri,CIPS,CILCOandIP.WiththeAmerenIllinois Mergerin2010,ColeremainedseniorvicepresidentatAmerenIllinois.AdamC.Heflin47SeniorVicePresidentandChiefNuclearOfficer(AmerenMissouri)HeflinjoinedAmerenMissouriin2005asvicepresidentofnuclearoperationsandwaselectedseniorvicepresidentandchief nuclearofficerofAmerenMissouriin2008.RichardJ.Mark56SeniorVicePresident(AmerenMissouri)MarkjoinedAmerenServicesin2002asvicepresidentofcustomerservice.In2003,hewaselectedvicepresidentof governmentalpolicyandconsumeraffairsatAmerenServices,withresponsibilityforgovernmentaffairs,economic developmentandcommunityrelationsforAmerensoperatingutilitycompanies.Hewaselectedseniorvicepresident, customeroperationsofAmerenMissouriin2005,withresponsibilityforMissourienergydelivery.In2007,Markrelinquished hispositionatAmerenServices.MichaelL.Moehn42SeniorVicePresident(AmerenIllinois)(EffectiveJanuary1,2012)MoehnjoinedAmerenServicesin2000.HewasnameddirectorofAmerenServicescorporatemodelingandtransaction supportin2001andelectedvicepresidentofbusinessservicesforAERin2002.In2004,Moehnwaselectedvicepresidentof corporateplanningofAmerenServicesandrelinquishedhispositionatAER.In2008,hewaselectedseniorvicepresident, corporateplanningandbusinessriskmanagementofAmerenServices.EffectiveJanuary1,2012,Moehnrelinquishedhis positionatAmerenServicesandwaselectedseniorvicepresidentofcustomeroperationsofAmerenIllinois.CharlesD.Naslund59SeniorVicePresident(AmerenMissouri)NaslundjoinedAmerenMissouriin1974.HewaselectedvicepresidentofpoweroperationsatAmerenMissouriin1999,vice presidentofAmerenServicesin2000andvicepresidentofnuclearoperationsatAmerenMissouriin2004.Herelinquished hispositionatAmerenServicesin2001.NaslundwaselectedseniorvicepresidentandchiefnuclearofficeratAmeren Missouriin2005.In2008,hewaselectedchairman,presidentandchiefexecutiveofficerofAERandchairmanandpresident ofGenco.NaslundrelinquishedhispositionsatAmerenMissouriin2008.EffectiveMarch2,2011,Naslundassumedthe positionofseniorvicepresident,generationandenvironmentalprojectsofAmerenMissouriandrelinquishedhispositionsof chairman,presidentandchiefexecutiveofficerofAERandchairmanandpresidentofGenco.
28 NameAgePositionsandOfficesHeldStevenR.Sullivan51Chairman,PresidentandChiefExecutiveOfficer(AER);ChairmanandPresident(Genco);andPresidentandChiefExecutiveOfficer (MarketingCompany)SullivanjoinedAmeren,AmerenMissouri,CIPSandAmerenServicesin1998asvicepresident,generalcounselandsecretary.
HeaddedthosepositionsatGencoin2000.In2003,Sullivanwaselectedvicepresident,generalcounselandsecretaryof CILCO.Hewaselectedseniorvicepresident,generalcounselandsecretaryofAmeren,AmerenMissouri,CIPS,Genco,CILCO andAmerenServicesin2003andofIPin2004.WiththeAmerenIllinoisMergerin2010,Sullivanremainedseniorvice president,generalcounselandsecretaryatAmerenIllinois.EffectiveMarch2,2011,Sullivanwaselectedtothepositionsof chairman,presidentandchiefexecutiveofficerofAERandchairmanandpresidentofGencoandrelinquishedhispositionsof seniorvicepresidentandgeneralcounselofAmeren,AmerenMissouri,AmerenIllinois,GencoandAmerenServices.Effective May1,2011,SullivanrelinquishedhispositionassecretaryfortheAmerenCompanies.EffectiveOctober31,2011,Sullivan waselectedtothepositionsofpresidentandchiefexecutiveofficerofMarketingCompany.Officersaregenerallyelectedorappointedannuallybytherespectiveboardofdirectorsofeachcompany,followingtheelectionofboardmembersattheannualmeetingsofshareholders.Nospecialarrangementorunderstandingexistsbetween anyoftheabove-namedexecutiveofficersandtheAmerenCompaniesnor,toourknowledge,withanyotherpersonor personspursuanttowhichanyexecutiveofficerwasselectedasanofficer.Therearenofamilyrelationshipsamongthe officers.Alloftheabove-namedexecutiveofficershavebeenemployedbyanAmerencompanyformorethanfiveyearsin executiveormanagementpositions.PARTIIITEM5.MARKETFORREGISTRANTSCOMMONEQUITY,RELATEDSTOCKHOLDERMATTERSANDISSUERPURCHASESOFEQUITYSECURITIES.AmerenscommonstockislistedontheNYSE(tickersymbol:AEE).Amerencommonshareholdersofrecordtotaled63,531onJanuary31,2012.Thefollowingtablepresentsthepriceranges,closingprices,anddividendsdeclaredperAmeren commonshareforeachquarterduring2011and2010.HighLowCloseDividendsDeclaredAEE2011QuarterEnded:March31........................................................$29.14$26.46$28.0738 12¢June30.........................................................30.1427.7828.8438 12September30
.....................................................31.4425.5529.7738 12December31
.....................................................34.1127.9833.1340AEE2010QuarterEnded:March31........................................................$28.27$24.14$26.0838 12¢June30.........................................................26.9223.0923.7738 12September30
.....................................................28.9923.4528.4038 12December31
.....................................................29.8927.6528.1938 12ThereisnotradingmarketforthecommonstockofAmerenMissouri,AmerenIllinoisandGenco.AmerenholdsalloutstandingcommonstockofAmerenMissouriandAmerenIllinois;AERholdsalloutstandingcommonstockofGenco.ThefollowingtablesetsforththequarterlycommonstockdividendpaymentsmadebyAmerenanditssubsidiariesduring2011and2010:(Inmillions) 2011QuarterEnded 2010QuarterEndedRegistrantDecember31September30June30March31December31September30June30March31AmerenMissouri
......$184$84$67$68$59$60$58$58AmerenIllinois
........8988886233333433 Ameren..............9693939392939291OnFebruary10,2012,theboardofdirectorsofAmerendeclaredaquarterlydividendonAmerenscommonstockof40centspershare.ThecommonsharedividendispayableMarch30,2012,tostockholdersofrecordonMarch14,2012.ForadiscussionofrestrictionsontheAmerenCompaniespaymentofdividends,seeLiquidityandCapitalResourcesinManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperationsunderPartII,Item7,ofthisreport.
29 PurchasesofEquitySecuritiesThefollowingtablepresentsAmerenCorporationspurchasesofequitysecuritiesreportableunderItem703ofRegulation S-K: Period(a)TotalNumberofShares(orUnits)
Purchased (a)(b)AveragePricePaidperShare(orUnit)(c)TotalNumberofShares(orUnits)PurchasedAsPartofPublicly AnnouncedPlansorPrograms(d)MaximumNumber(orApproximateDollarValue)ofShares(orUnits)ThatMayYetBePurchasedUnderthePlansorProgramsOctober1-October31,2011......-$---November1-November30,2011..3,20132.30--
December1-December31,201 1...2,47732.03--
Total..........................5,678$32.18--(a)IncludedinNovemberwere3,201sharesofAmerencommonstockpurchasedinopen-markettransactionspursuanttoAmerens2006OmnibusIncentiveCompensationPlaninsatisfactionofAmerensobligationtodistributesharesofcommonstockforvestedperformance units.IncludedinDecemberwere2,477sharesofAmerencommonstockpurchasedinopenmarkettransactionspursuanttoAmerens2006 OmnibusIncentiveCompensationPlaninsatisfactionofAmerensobligationsforAmerenboardofdirectorscompensationawards.Ameren doesnothaveanypubliclyannouncedequitysecuritiesrepurchaseplansorprograms.AmerenMissouri,AmerenIllinoisandGencodidnotpurchaseequitysecuritiesreportableunderItem703ofRegulationS-KduringtheperiodfromOctober1,2011toDecember31,2011.PerformanceGraphThefollowinggraphshowsAmerenscumulativetotalshareholderreturnduringthefiveyearsendedDecember31,2011.ThegraphalsoshowsthecumulativetotalreturnsoftheS&P500IndexandtheEdisonElectricInstituteIndex(EEIIndex),
whichcomprisesmostinvestor-ownedelectricutilitiesintheUnitedStates.Thecomparisonassumesthat$100wasinvested onDecember31,2006,inAmerencommonstockandineachoftheindicesshown,anditassumesthatallofthedividends werereinvested.
2011 2010 2009 2008 2007 2006 AEE S&P 500 EEI Index$50$75$100$125December31,200620072008200920102011 Ameren...................................................$100$105.94$69.30$61.87$66.11$81.82S&P500Index.............................................100105.4966.4684.0496.70 98.74EEIIndex.................................................100116.5686.3795.62102.35 122.81Amerenmanagementcautionsthatthestockpriceperformanceshowninthegraphaboveshouldnotbeconsideredindicativeofpotentialfuturestockpriceperformance.
30 ITEM6.SELECTEDFINANCIALDATA.FortheyearsendedDecember31,(Inmillions,exceptpershareamounts)20112010200920082007 Ameren (a):Operatingrevenues
..........................................$7,531$7,638$7,135$7,869$7,562Operatingincome (b)..........................................
1,2419161,4161,3621,359NetincomeattributabletoAmerenCorporation
.....................
519139612605618Commonstockdividends
.....................................
375368338534527Earningspershare-basicanddiluted
...........................
2.150.582.782.882.98Commonstockdividendspershare
.............................
1.5551.541.542.542.54AsofDecember31:Totalassets
................................................$23,645$23,511$23,702$22,671$20,752Long-termdebt,excludingcurrentmaturities
......................
6,6776,8537,1116,5545,689Preferredstocksubjecttomandatoryredemption
...................
16TotalAmerenCorporationstockholdersequity
.....................
7,9197,7307,8566,9636,752AmerenMissouri:Operatingrevenues
..........................................$3,383$3,197$2,874$2,960$2,961Operatingincome (b)..........................................
609711566514590Netincomeavailabletocommonstockholder
......................
287364259245336Dividendstoparent
..........................................
403235175264267AsofDecember31:Totalassets
................................................$12,757$12,504$12,219$11,529$10,903Long-termdebt,excludingcurrentmaturities
......................
3,7723,9494,0183,6733,208Totalstockholdersequity
.....................................
4,0374,1534,0573,5623,601AmerenIllinois:Operatingrevenues
..........................................$2,787$3,014$2,984$3,508$3,380Operatingincome
...........................................
458498363191195Incomefromcontinuingoperations
..............................
1962121334156Netincomeavailabletocommonstockholder
......................
19324824187114Dividendstoparent
..........................................
3271339860101AsofDecember31:Totalassets (c)...............................................$7,213$7,406$8,298$8,023$7,101Long-termdebt,excludingcurrentmaturities
......................
1,6571,6571,8471,8501,618Preferredstocksubjecttomandatoryredemption
...................
16Totalstockholdersequity
.....................................
2,4522,5763,0722,6552,635 Genco:Operatingrevenues
..........................................$1,066$1,126$1,148$1,422$1,298Operatingincome (b)..........................................
13962324551468Netincome(loss)attributabletoAmerenEnergyGeneratingCompany..
44(39)160286230Dividendstoparent
..........................................
--43221199AsofDecember31:Totalassets
................................................$2,572$2,607$2,920$2,592$2,288Long-termdebt,excludingcurrentmaturities
......................
824824823774474Subordinatedintercompanynotes(current)
.......................
--176145172TotalAmerenEnergyGeneratingCompanystockholdersequity
........1,0189981,004868857(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.(b)IncludesGoodwill,impairmentandotherchargesof$125millionand$589millionrecordedatAmerenand$35millionand$170millionrecordedatGenco,duringtheyearsendedDecember31,2011,andDecember31,2010,respectively.IncludesLossfromregulatory disallowanceof$89millionrecordedatAmerenMissouriduringtheyearendedDecember31,2011.(c)Includestotalassetsfromdiscontinuedoperationsof$1,117million,$1,081million,and$865millionatDecember31,2009,2008,and2007, respectively.
31 ITEM7.MANAGEMENTSDISCUSSIONANDANALYSISOFFINANCIALCONDITIONANDRESULTSOFOPERATIONS.
OVERVIEWAmerenExecutiveSummary
OperationsDuring2011,Amerenremainedcommittedtoprovidingitscustomerswithsafe,reliable,environmentally responsibleandreasonably-pricedenergywhileatthesame timeenhancingvalueforourshareholders.Ameren MissouriandAmerenIllinoisseektoearncompetitive returnsontheirinvestmentsbyimprovingtheirregulatory frameworksandseekingrateincreasesasneeded.
AmerensMerchantGenerationbusinessseekstoprotect andenhanceshareholdervaluebyminimizingoperatingand capitalspendingduringthecurrentperiodoflowpower priceswhileadvocatingforregulatorypoliciesandpower marketimprovementsthatwillleadtoimprovedeconomics.
Amereniscommittedtoallocatingcapitaltoprojectsthat haveanopportunitytoearnacompetitivereturnandto aligningitsspendingwithregulatoryoutcomesand economicconditions.Therewereseveraldevelopmentsduring2011andearly2012thathavethepotentialtoimprovethelevelor predictabilityofearnedreturnsatAmerenMissouriand AmerenIllinois.InJanuary2012,AmerenIllinoiselectedto participateintheIEIMAsperformance-basedformula ratemakingprocessforelectricdeliveryservice.Asaresult, AmerenIllinoiselectricdeliveryserviceearningsin2012 andbeyondareexpectedtoreflectperformance-based formularatemaking,whichwillenableadditional infrastructureinvestmentandthecreationofjobs.The improvedinfrastructurewillenhancereliabilityandprovide customerswiththeenergyusageoptionsmadepossibleby smartmeters.AlsoinJanuary2012,theICCapprovedan increaseinannualAmerenIllinoisrevenuesfornaturalgas deliveryservice.In2011,AmerenMissourireceivedrate increasesforitselectricandnaturalgasbusinesses.In February2012,AmerenMissourifiledanelectricratecase withtheMoPSCseekingtorecoveritsoperatingandcapital costsandtoearnafairreturnoninvestmentsmadeto serveitscustomers.Inadditiontothatpendingelectricrate case,inJanuary2012,AmerenMissourifileditsfirst requestwiththeMoPSCforapprovalofnewandexpanded energyefficiencyprogramsalongwithacost-recovery mechanismundertheMEEIA.TheMEEIAwasdesignedto enableutilitiestopursuecosteffectiveenergyefficiency programsbyaligningtheutilitysfinancialincentiveswith thoseofitscustomers.Also,FERCisexpectedtoissuean orderonMISOsproposaltoestablishacapacitymarket withintheRTO.TheMISOproposalcallsforthefirstannual capacityauctiontobeheldinApril2013fortheJune2013 toMay2014planningyear.AmerensupportstheMISO proposalaswellasMISOseffortstoincreasetheamount ofcapacitythatcanbesharedbetweenMISOandPJM.
Amerenwillcontinuetoadvocateforamulti-yearcapacity constructtoimprovethefunctioningofpowermarkets.The creationofaMISOcapacitymarketwouldmoreaccurately reflectthevalueofcapacity,improveefficiencyand reliability,andbenefitcustomersoverthelong-term.TheMerchantGenerationsegmentexpectsitscashflowsfromoperatingactivitiestoexceedcapitalexpendituresin 2012reflectingthebenefitofitsforwardpowersalesand hedgingprogramsaswellasactionstakentoreduce spending.Inearly2012,therehasbeenasharpdeclinein forwardpowerprices.Thedeclineinpowerpricesisbelieved tobecausedbyfactorssuchasdecliningnaturalgasprices andthestayoftheCSAPR.Itisunclearwhenlegaland regulatoryuncertaintiesrelatedtoCSAPRwillberesolvedand whennaturalgaspriceswillrecover.Asaresultofthe decliningpriceofpower,MerchantGenerationandGenco haverevisedtheircapitalspendingplans.GencoisdeceleratingconstructionofitsNewtonenergycenterscrubberproject,postponinginstallationuntilsuchtimeas theincrementalinvestmentnecessaryforcompletionis justifiedbyvisiblemarketconditions.Inaddition,AERGhas removedfromitsfive-yearcapitalexpenditureplansthe previouslyplannedprecipitatorupgradesatitsE.D.Edwards energycenter.MerchantGenerationbelievestheseactionsare thebestpathtoachievingappropriatereturnsonincremental environmentalinvestmentsduringthisperiodoflowpower prices.TheseMerchantGenerationactionswillreducecapital needsbyapproximately$270millionfrom2012through2014 comparedtopriorplans.GencowilldeceleratetheNewton scrubberprojectinamannerthatpreservesthevalueofthe workcommissionedtodate.Gencohasreduceditsexpected 2012capitalexpendituresfortheNewtonscrubberprojectto approximately$150million.After2012,Gencowillperform minimalamountsofongoingconstructionactivitiessuchthat whentheeconomicsmeritcompletingtheNewtonscrubber project,theprojectcanbecompletedinanorderlyandcost-effectivemanner.Amerenplanstosignificantlygrowitsinvestmentinelectrictransmissionassets,whichareregulatedbyFERC.
Amerenexpectstoinvestatotalofapproximately
$1.7billionintransmissionprojectsoverthefive-year periodendingin2016.Ofthattotal,AmerenIllinoisexpects toinvest$900millionintransmissionprojectsthatare focusedonlocalloadgrowthandreliabilityneeds.In December2011,MISOapprovedtheIllinoisRivers,Spoon River,andMarkTwainprojects.ATXandATXIstotal investmentinthesethreeMISO-approvedprojectsis expectedtobemorethan$1.2billionthrough2019,with potentialinvestmentofapproximately$750millionfrom 2012to2016.In2012,ATXIismovingforwardwiththeline routingandsitingprocessfortheIllinoisRiversproject.
EarningsAmerenreportednetincomeof$519million,or$2.15pershare,for2011comparedwithnetincomeof
$139million,or58centspershare,in2010.Themain factorcontributingtotheincreaseinearningsin2011 comparedwith2010wasareductioningoodwill, impairmentandotherchargesof$464million,or$1.87per share.The2011chargesweretheresultoftheMoPSCs July2011disallowanceofcostsofenhancementsrelatedto therebuildingofAmerenMissourisTaumSaukenergy 32 centerinexcessofamountsrecoveredfrompropertyinsurance,aswellasnewenvironmentalrules,theprimary impactofwhichwasGencosclosureoftheMeredosiaand Hutsonvilleenergycenters.Amerensearningsalso increasedin2011,comparedwith2010,becauseofhigher electricutilityratesforAmerenMissouriandAmerenIllinois andlowerinterestexpense.Offsettingfactorsincluded reducedelectricmarginsintheMerchantGeneration segmentduetolowerrealizedpowerpricesandhigherfuel andtransportation-relatedexpenses;lowerelectricsalesto nativeloadutilitycustomersdue,inpart,tosummer temperaturesthatwhilewarmerthannormal,werebelow thoseofaveryhot2010;unrealizednetlossesonMTM activityrelatedtononqualifyingpowerhedgesandfuel-relatedcontracts;andhighermajorstormrepairexpenses.
Additionally,Amerenrecordedachargetoearnings associatedwiththevoluntaryseparationofferstoeligible AmerenMissouriandAmerenServicesemployeesduring thefourthquarterof2011.
LiquidityCashflowsfromoperationsof$1.9billionwereusedtopaydividendstocommonstockholdersof$375million andtofundcapitalexpendituresof$1.0billion.At December31,2011,Ameren,onaconsolidatedbasis,had availableliquidity,intheformofcashonhandandamounts availableunderitsexistingcreditfacilities,ofapproximately
$2.2billion,whichwasa$300millionincreaseinthe amountofavailableliquidityatDecember31,2010.CapitalSpendingFrom2012through2016,Amerenscumulativecapitalspendingisprojectedtorangebetween$6.5billionand
$8.3billion.MuchofthisspendingisatAmerensrate-regulatedutilities,includingatotalofapproximately
$750millionatATXandATXI,intheaggregate,toinvestin theirelectrictransmissionassets.TheMerchantGeneration segmentscapitalspendingisexpectedtobeupto$450 million,primarilyforenvironmentalcompliance,from2012 through2016.Thedecisiontomakepollutioncontrol equipmentinvestmentsinAmerensMerchantGeneration segmentdependsonwhethertheexpectedfuturemarket priceforpowerreflectstheincreasedcostofenvironmental
compliance.
GeneralAmeren,headquarteredinSt.Louis,Missouri,isapublicutilityholdingcompanyunderPUHCA2005, administeredbyFERC.Amerensprimaryassetsarethe commonstockofitssubsidiaries.Amerenssubsidiaries areseparate,independentlegalentitieswithseparate businesses,assets,andliabilities.Thesesubsidiaries operate,asthecasemaybe,rate-regulatedelectric generation,transmission,anddistributionbusinesses,rate-regulatednaturalgastransmissionanddistribution businesses,andmerchantelectricgenerationbusinessesin MissouriandIllinois.DividendsonAmerenscommon stockandthepaymentofotherexpensesbyAmerendependondistributionsmadetoitbyitssubsidiaries.Amerensprincipalsubsidiariesarelistedbelow.See Note1-SummaryofSignificantAccountingPoliciesunder PartII,Item8,ofthisreportforadetaileddescriptionofour principalsubsidiaries.
AmerenMissourioperatesarate-regulatedelectricgeneration,transmissionanddistributionbusiness,and arate-regulatednaturalgastransmissionand distributionbusinessinMissouri.
AmerenIllinoisoperatesarate-regulatedelectricandnaturalgastransmissionanddistributionbusinessin
Illinois.AERconsistsofnon-rate-regulatedoperations,includingGenco,AERG,MarketingCompanyand MedinaValley.TheMedinaValleyenergycenterwas soldinFebruary2012.Gencooperatesamerchant electricgenerationbusinessinIllinoisandholdsan 80%ownershipinterestinEEI.OnOctober1,2010,Ameren,CIPS,CILCO,IP,AERGandAERcompletedatwo-stepcorporateinternal reorganization.Thefirststepofthereorganizationwasthe AmerenIllinoisMerger.UponconsummationoftheAmeren IllinoisMerger,theseparatelegalexistenceofCILCOandIP ended.Thesecondstepofthereorganizationinvolvedthe distributionofAERGstockfromAmerenIllinoistoAmeren andthesubsequentcontributionbyAmerenoftheAERG stocktoAER.TheAmerenIllinoisMergerandthe distributionofAERGstockwereaccountedforas transactionsbetweenentitiesundercommoncontrol.In accordancewithauthoritativeaccountingguidance,assets andliabilitiestransferredbetweenentitiesundercommon controlwereaccountedforatthehistoricalcostbasisofthe commonparent,Ameren,asifthetransferhadoccurredat thebeginningoftheearliestreportingperiodpresented.
AmerenshistoricalcostbasisinAmerenIllinoisincluded purchaseaccountingadjustmentsrelatedtoAmerens acquisitionofCILCORPin2003.AmerenIllinoisaccounted fortheAERGdistributionasaspinoff.AmerenIllinois transferredAERGtoAmerenbasedonAERGscarrying value.AmerenIllinoishassegregatedAERGsoperating resultsandcashflowsandpresentedthemseparatelyas discontinuedoperationsinitsconsolidatedstatementof incomeandconsolidatedstatementofcashflows, respectively,forallperiodspresentedpriortoOctober1, 2010,inthisreport.ForAmerensfinancialstatements, AERGsresultsofoperationsremainclassifiedas continuingoperations.SeeNote16-Corporate ReorganizationandDiscontinuedOperationsunderPartII, Item8,foradditionalinformation.EffectiveJanuary1,2010,aspartofaninternalreorganization,AERtransferredits80%stockownership interestinEEItoGencothroughacapitalcontribution.The transferofEEItoGencowasaccountedforasatransaction betweenentitiesundercommoncontrol,wherebyGenco accountedforthetransferatthehistoricalcarryingvalueof theparent(Ameren)asifthetransferhadoccurredatthe beginningoftheearliestreportingperiodpresented.
AmerenshistoricalcostbasisinEEIincludedpurchase 33 accountingadjustmentsrelatingtoAmerensacquisitionofanadditional20%ownershipinterestinEEIin2004.This transferrequiredGencosprior-periodfinancialstatements toberetrospectivelycombinedforallperiodspresented.
Consequently,Gencosprior-periodconsolidatedfinancial statementsreflectEEIasifithadbeenasubsidiaryof Genco.AmerenandGencoconsolidateEEIforfinancial reportingpurposes.ThefinancialstatementsofAmerenarepreparedonaconsolidatedbasisandthereforeincludetheaccountsofits majority-ownedsubsidiaries.Allsignificantintercompany transactionshavebeeneliminated.Alltabulardollar amountsareinmillions,unlessotherwiseindicated.Inadditiontopresentingresultsofoperationsandearningsamountsintotal,wepresentcertaininformationin centspershare.Theseamountsreflectfactorsthatdirectly affectAmerensearnings.Webelievethispershare informationhelpsreaderstounderstandtheimpactofthese factorsonAmerensearningspershare.Allreferencesin thisreporttoearningspersharearebasedonaverage dilutedcommonsharesoutstanding.RESULTSOFOPERATIONSEarningsSummaryOurresultsofoperationsandfinancialpositionareaffectedbymanyfactors.Weather,economicconditions, andtheactionsofkeycustomersorcompetitorscan significantlyaffectthedemandforourservices.Ourresults arealsoaffectedbyseasonalfluctuations:winterheating andsummercoolingdemands.Thevastmajorityof Amerensrevenuesaresubjecttostateorfederalregulation.
Thisregulationhasamaterialimpactonthepricewe chargeforourservices.MerchantGenerationsalesarealso subjecttomarketconditionsforpower.Weprincipallyuse coal,nuclearfuel,naturalgas,andoilforfuelinour operations.Thepricesforthesecommoditiescanfluctuate significantlyduetotheglobaleconomicandpolitical environment,weather,supplyanddemand,andmanyother factors.Wehavenaturalgascostrecoverymechanismsfor ourIllinoisandMissourinaturalgasdeliveryservice businesses,apurchasedpowercostrecoverymechanism forourIllinoiselectricdeliveryservicebusiness,andaFAC forourMissourielectricutilitybusiness.Fluctuationsin interestratesandconditionsinthecapitalandcredit marketsaffectourcostofborrowingandourpensionand postretirementbenefitscosts.Weemployvariousrisk managementstrategiestoreduceourexposureto commodityriskandotherrisksinherentinourbusiness.
Thereliabilityofourenergycentersandtransmissionand distributionsystemsandthelevelofpurchasedpower costs,operationsandmaintenancecosts,andcapital investmentarekeyfactorsthatweseektocontrolto optimizeourresultsofoperations,financialposition,and
liquidity.NetincomeattributabletoAmerenCorporationwas$519million,or$2.15pershare,for2011,$139million,or
$0.58pershare,for2010,and$612million,or$2.78per share,for2009.2011versus2010NetincomeattributabletoAmerenCorporationincreased$380million,andearningspershareincreased
$1.57in2011comparedwith2010.TheMerchant Generationsegmentreportednetincomeattributableto AmerenCorporationof$45millionin2011,comparedwith a$409millionnetlossin2010.Netincomeattributableto AmerenCorporationdecreasedintheAmerenMissouriand AmerenIllinoisRegulatedsegmentsby$77millionand
$15million,respectively,in2011comparedwith2010.Comparedwith2010earningspershare,2011earningswerefavorablyaffectedby:
reducedgoodwill,impairmentandotherchargesintheMerchantGenerationsegmentoffset,inpart,bya chargetoearningsrelatedtotheMoPSCsJuly2011 disallowanceofcostsofenhancementsrelatingtothe rebuildingoftheTaumSaukenergycenterinexcessof amountsrecoveredfrompropertyinsurance($1.87per
share);higherAmerenMissourielectricratespursuanttoordersissuedbytheMoPSC,whichbecameeffectivein June2010andinJuly2011,aswellashigherAmeren MissourinaturalgasratespursuanttoaMoPSCorder, whichbecameeffectiveinlateFebruary2011.The impactoftheAmerenMissourielectricrateincreases onearningswasreducedbytheadoptionoflifespan depreciationmethodology,recognitionin2010of regulatoryassetsforpreviously-expensedcostsinthe prior-yearperiod,andincreasedregulatoryasset amortizationasdirectedbytherateorders(17cents pershare).Theseamountsexcludetheunfavorable impactofthechargetoearningsrelatedtothe MoPSCsdisallowanceofTaumSaukrebuildingcosts discussedabove; lowerinterestexpense,primarilyduetothematurityandrepaymentof$200millionofGencossenior securednotesinNovember2010,theredemptionof
$66millionofAmerenMissourissubordinated deferrableinterestdebenturesinSeptember2010, AmerenIllinoisredemptionsof$150millionofsenior securednotesand$40millionoffirstmortgagebonds inJune2011andSeptember2010,respectively,anda reductioninborrowingsundercreditfacility agreements(12centspershare);
higherAmerenIllinoiselectricratespursuanttoordersissuedbytheICCin2010(6centspershare);
theabsencein2011ofachargefortheimpactondeferredtaxesfromchangesinfederalhealthcarelaws (6centspershare);
theabsencein2011ofchargesrecordedin2010forcancelledorunrecoverableprojectsatAmerenMissouri (6centspershare);
areductioninoperationsandmaintenanceexpenserelatedtoplantmaintenance,primarilyatAmeren Missouri,asfewercostswereincurredformajor outagesatcoal-firedenergycentersasthescopeofthe outagesin2011wasnotasextensiveasthescopeof theoutagesconductedin2010(5centspershare);and 34 reductioninexpenseasaresultofdisciplinedcostmanagementeffortstoalignspendingwithregulatory outcomesandeconomicconditions.Comparedwith2010earningspershare,2011earningswereunfavorablyaffectedby:
lowerelectricmarginsintheMerchantGenerationsegment,largelyduetolowerrealizedrevenueper megawatthoursoldandhigherfuelandrelated transportationcosts(21centspershare).Thisamount excludestheunfavorableimpactsofnetunrealized MTMactivitydiscussedbelow.SeeOutlookfor expectedtrendsinfuturecoal,transportationand powerprices; reducedrate-regulatedretailsalesvolumes,excludingtheeffectsofabnormalweather,assalesvolumes declinedduetocontinuedeconomicpressure,energy efficiencymeasures,andcustomerconservationefforts aswellaslowerwholesalesalesatAmerenMissouri duetoareductionincustomersandtheexpirationof favorablypricedcontracts,amongotheritems (15centspershare);
unrealizednetlossesonMTMactivityprimarilyrelatedtononqualifyingpowerhedgesandfuel-related contractsaswellasunfavorablechangesinthemarket valueofinvestmentsusedtosupportAmerens deferredcompensationplans(10centspershare);
theimpactofweatherconditionsonelectricandnaturalgasdemand(estimatedat10centspershare);
increasedoperationsandmaintenanceexpensesasaresultofmajorstormsin2011(9centspershare);
areductioninallowanceforequityfundsusedduringconstructionreflectingthe2010completionoftwo scrubbersatAmerenMissourisSiouxenergycenter (8centspershare);
increasedoperationsandmaintenanceexpensesassociatedwithvoluntaryseparationofferstoeligible AmerenMissouriandAmerenServicesemployees duringthefourthquarterof2011(7centspershare);
areductioninrevenuesresultingfromtheMoPSCsApril2011orderwithrespecttoitsFACreviewforthe periodfromMarch1,2009,toSeptember30,2009, thatresultedinAmerenMissourirecordingan obligationtorefundtoitselectriccustomersthe earningsassociatedwithcertainpreviouslyrecognized sales.SeeNote2-RateandRegulatoryMattersunder PartII,Item8,ofthisreportforadditionalinformation (5centspershare);and anincreaseindepreciationandamortizationexpensecausedprimarilybytheinstallationofscrubbersat AmerenMissourisSiouxenergycenteraswellasother capitaladditions(4centspershare).Thecentspershareinformationpresentedaboveisbasedonaveragesharesoutstandingin2010.2010versus2009NetincomeattributabletoAmerenCorporationdecreased$473million,anditsearningspershare decreased$2.20in2010comparedwith2009.NetincomeattributabletoAmerenCorporationincreasedintheAmerenMissouriandAmerenIllinoisRegulatedsegmentsby
$105millionand$81million,respectively,in2010 comparedwith2009,whilenetincomeattributableto AmerenCorporationintheMerchantGenerationsegment decreasedby$656millionin2010comparedwith2009.Comparedwith2009earningspershare,2010earningswerenegativelyaffectedby:
the2010impairmentofgoodwill,intangibleassets,andlong-livedassetswithintheMerchantGeneration segmentduetothesustaineddeclineinmarketprices forelectricity,industrymarketmultiplesbecoming observableatlowerlevelsthanpreviouslyestimated, andpotentiallymorestringentenvironmentalregulations($2.19pershare);
lowerrealizedelectricmarginsintheMerchantGenerationsegmentlargelyduetolowerrealizedrevenue permegawatthoursoldandhigherfuelandrelated transportationcosts(79centspershare).Thisamount excludestheunfavorableimpactsofnetunrealizedMTM activityonnonqualifyingpowerhedgesdiscussedbelow; higherdilution(23centspershare)causedbyanincreaseintheaveragenumberofcommonshares outstanding,largelybecauseofaSeptember2009 commonstockissuance,theproceedsofwhichwere usedtomakeinvestmentsinAmerensrate-regulated utilities.Theimpactofdilutionwasoffsetbyhigher earnedreturnsoninvestmentsatAmerensrate-regulatedutilitiesandlowerfinancingcosts; costsassociatedwiththeCallawayenergycentersscheduledrefuelingandmaintenanceoutagein2010.
TherewasnoCallawayrefuelingandmaintenance outagein2009(12centspershare);
increaseddepreciationandamortizationexpenses,primarilyduetocapitaladditionsplacedinserviceat theMerchantGenerationsegmentinlate2009and early2010,excludingtheimpactsatAmerenMissouri oftheMay2010MoPSCelectricrateorderdiscussed below(9centspershare);
areducedgainfromnetunrealizedMTMactivityonnonqualifyingpowerhedgesandfromchangesinthe marketvalueofinvestmentsusedtosupportAmerens deferredcompensationplans(6centspershare);and theimpactondeferredtaxesfromchangesinfederalhealthcarelaws(6centspershare).Comparedwith2009earningspershare,2010earningswerefavorablyaffectedby:
theimpactofweatherconditionsonenergydemand(estimatedat40centspershare);
higherAmerenMissourielectricratespursuanttotheMoPSC2009and2010electricrateorderseffectivein May2009andinJune2010,respectively,offsetbythe adoptionofthelifespandepreciationmethodologyand increasedregulatoryassetamortizationasdirectedby theMoPSC2010electricrateorder(27centspershare);
thefavorableimpactonelectricandnaturalgasmarginsinourrate-regulatedbusinessesfromhigher weather-normalizedsalesvolumes(exclusiveofhigher salestoNorandadiscussedbelow),largelydueto 35 improvedeconomicconditionsandhigherwholesalesalesmarginsatAmerenMissouribecauseof additionalcustomersandhigher-pricedwholesalesales contracts,amongotherthings(20centspershare);
increasedAmerenMissourisalestoNorandaasitssmelterplantgraduallyreturnedtofullcapacitybythe endofthefirstquarterof2010afteraJanuary2009 severeicestormsignificantlyreducedtheplants capacity(11centspershare);
areductioninfinancingexpensescausedprimarilybyanincreaseintheallowanceforfundsusedduring constructionatAmerenMissourifortheinstallationof twoscrubbersatitsSiouxenergycenter(10centsper
share);higherAmerenIllinoiselectricandnaturalgasnetdeliveryratespursuanttotheICC2010rateorders,whichbecameeffectiveinMayandNovember2010(9centspershare);and reducedchargesin2010relatingtoworkforcereductionsthroughvoluntaryandinvoluntary separationprograms(4centspershare).Thecentspershareinformationpresentedaboveisbasedonaveragesharesoutstandingin2009.ForadditionaldetailsregardingtheAmerenCompaniesresultsofoperations,includingexplanationsof Margins,OtherOperationsandMaintenanceExpenses,Goodwill,ImpairmentandOtherCharges,DepreciationandAmortization,TaxesOtherThanIncomeTaxes,Interest Charges,andIncomeTaxes,seethemajorheadingsbelow.BelowisatableofincomestatementcomponentsbysegmentfortheyearsendedDecember31,2011,2010,and2009:
2011 Ameren Missouri Ameren Illinois Regulated Segment Merchant GenerationOther/IntersegmentEliminationsTotalElectricmargins
.............................................$2,252$1,087$668$(10)$3,997Naturalgasmargins
.........................................79354-(2)431Otherrevenues
.............................................513(9)-Otheroperationsandmaintenance
..............................(934)(640)(285)39(1,820)Goodwill,impairmentandothercharges
..........................(89)-(37)1(125)Depreciationandamortization
..................................(408)(215)(143)(19)(785)Taxesotherthanincometaxes
.................................(296)(129)(24)(8)(457)Otherincomeand(expenses)
..................................5111(7)46Interestcharges
.............................................(209)(136)(105)(1)(451)Income(taxes)benefit
........................................(161)(127)(32)10(310)Netincome(loss)
...........................................29019646(6)526Noncontrollinginterestandpreferreddividends
....................(3)(3)(1)-(7)Netincome(loss)attributabletoAmerenCorporation
...............$287$193$45$(6)$519 2010Electricmargins.............................................$2,233$1,096$780$(17)$4,092Naturalgasmargins.........................................75375-(2)448Otherrevenues.............................................1--(1)-Otheroperationsandmaintenance
..............................(931)(635)(287)32(1,821)Goodwill,impairmentandothercharges..........................--(589)-(589)Depreciationandamortization
..................................(382)(210)(146)(27)(765)Taxesotherthanincometaxes
.................................(285)(128)(26)(10)(449)Otherincomeand(expenses)..................................70(6)1(8)57Interestcharges
.............................................(213)(143)(133)(8)(497)Income(taxes)benefit
........................................(199)(137)(6)17(325)Netincome(loss)...........................................369212(406)(24)151Noncontrollinginterestandpreferreddividends....................(5)(4)(3)-
(12)Netincome(loss)attributabletoAmerenCorporation...............$364$208$(409)$(24)$139 2009Electricmargins.............................................$1,983$917$1,012$(22)$3,890Naturalgasmargins.........................................73373--446Otherrevenues.............................................44-(8)-Otheroperationsandmaintenance
..............................(880)(590)(333)35(1,768)Goodwill,impairmentandothercharges..........................--(7)-(7)Depreciationandamortization
..................................
(357)(216)(126)(26)(725)Taxesotherthanincometaxes
.................................(257)(125)(28)(10)(420)Otherincomeand(expenses)..................................5621(11)48Interestcharges
.............................................(229)(153)(119)(7)(508)Income(taxes)benefit
........................................(128)(79)(151)26(332)Netincome(loss)...........................................265133249(23)624Noncontrollinginterestandpreferreddividends....................(6)(6)(2)2 (12)Netincome(loss)attributabletoAmerenCorporation...............$259$127$247$(21)$612 36 MarginsThefollowingtablepresentsthefavorable(unfavorable)variationsintheregistrantselectricandnaturalgasmarginsfromthepreviousyear.Electricmarginsaredefinedaselectricrevenueslessfuelandpurchasedpowercosts.Naturalgas marginsaredefinedasgasrevenueslessgaspurchasedforresale.ThetablecoverstheyearsendedDecember31,2011, 2010,and2009.Weconsiderelectricandnaturalgasmarginsusefulmeasurestoanalyzethechangeinprofitabilityofour electricandnaturalgasoperationsbetweenperiods.Wehaveincludedtheanalysisbelowasacomplementtothefinancial informationweprovideinaccordancewithGAAP.However,thesemarginsmaynotbeapresentationdefinedunderGAAP, andmaynotbecomparabletoothercompaniespresentationsormoreusefulthantheGAAPinformationweprovide elsewhereinthisreport.2011versus2010 Ameren Missouri Ameren Illinois RegulatedSegmentGencoOther (a)AmerenElectricrevenuechange:Effectofweather(estimate)(b)............................................$(29)$(7)$-$-$(36)Regulatedrates:Higherbaserates...................................................17229--201RecoveryofFACunder-recovery (c)......................................89---89Off-systemrevenues.................................................53---53FACdisallowance
...................................................(17)---(17)Transmissionservices...............................................1(4)-3-Illinoispass-throughpowersupplycosts.................................-(112)-(1)(113)Energyefficiencyprogramsandenvironmentalremediationcostriders.........-6--6Baddebtrider......................................................-(17)--(17)Rate-regulatedsales(excludingtheimpactofabnormalweather)
................(37)(15)--(52)Wholesalerevenues
...................................................(43)---(43)MerchantGenerationsalespricechanges,includinghedgeeffect................--(58)(3)(61)NetunrealizedMTMlosses..............................................(2)-(4)(12)(18)Non-rate-regulatedsalesandother.......................................5(1)21117Totalelectricrevenuechange..............................................$192$(121)$(60)$(2)$9Fuelandpurchasedpowerchange:
Fuel:MerchantGenerationproductionvolumeandother.........................$-$-$(2)$14$12Fuelandtransportationcostsincludedinbaserates........................(84)---(84)RecoveryofFACunder-recovery (c)......................................(89)---(89)NetunrealizedMTMlosses............................................--(6)(2)(8)Price-MerchantGeneration..........................................--(11)(6)(17)MerchantGenerationpurchasedpowerandother............................--6(37)(31)Illinoispass-throughpowersupplycosts...................................-112-1113Totalfuelandpurchasedpowerchange......................................$(173)$112$(13)$(30)$(104)Netchangeinelectricmargins
............................................$19$(9)$(73)$(32)$(95)Naturalgasmarginschange:Effectofweather(estimate)(b)............................................$(1)$(5)$-$-$(6)Baddebtrider........................................................-(14)--(14)Changeinbaserates..................................................53--8Energyefficiencyprogramsandenvironmentalremediationcostriders...........-(1)--(1)Sales(excludingimpactofabnormalweather)andother.......................-(4)--(4)Netchangeinnaturalgasmargins
.........................................$4$(21)$-$-$(17) 37 2010versus2009 Ameren Missouri Ameren Illinois RegulatedSegmentGencoOther (a)AmerenElectricrevenuechange:Effectofweather(estimate)(b)...........................................$134$40$-$-$174Regulatedrates:Higherbaserates..................................................16241--203RecoveryofFACunder-recovery (c).....................................60---60Off-systemrevenues
................................................(102)---(102)Norandasales.....................................................54---54Transmissionservices...............................................742--49Illinoispass-throughpowersupplycosts................................-(83)-303220Energyefficiencyprogramsandenvironmentalremediationcostriders.........-29--29Baddebtrider.....................................................-14--14Rate-regulatedsales(excludingtheimpactofabnormalweather)...............916--25Wholesalerevenues..................................................(4)---(4)MerchantGenerationsalespricechanges,includinghedgeeffect...............--(81)(162)(243)2007IllinoisElectricSettlementAgreement,netofreimbursement..............-1010323NetunrealizedMTMgains(losses).......................................--(1)5049Non-rate-regulatedsalesandother.......................................10(13)50(17)30Totalelectricrevenuechange.............................................$330$96$(22)$177$581Fuelandpurchasedpowerchange:
Fuel:MerchantGenerationproductionvolumeandother........................$-$-$(38)$(9)$(47)Fuelandtransportationcostsincludedinbaserates........................9---9RecoveryofFACunder-recovery (c).....................................(60)---(60)NetunrealizedMTMlosses
...........................................(29)-(18)(4)(51)Price-MerchantGeneration..........................................--(51)(20)(71)MerchantGenerationpurchasedpowerandother............................--115061Illinoispass-throughpowersupplycosts..................................-83-(303)(220)Totalfuelandpurchasedpowerchange.....................................$(80)$83$(96)$(286)$(379)Netchangeinelectricmargins
...........................................$250$179$(118)$(109)$202Naturalgasmarginschange:Effectofweather(estimate)(b)...........................................$-$1$-$-$1Baddebtrider.......................................................-15--15Changeinbaserates..................................................-(11)--(11)Energyefficiencyprogramsandenvironmentalremediationcostriders...........-1--1NetunrealizedMTMlosses.............................................-(6)--(6)Sales(excludingimpactofabnormalweather)andother......................22-(2)2Netchangeinnaturalgasmargins
........................................$2$2$-$(2)$2(a)Includesamountsfornonregistrantsubsidiaries(largelymadeupofotherMerchantGeneration)andintercompanyeliminations.(b)Representstheestimatedmarginimpactresultingfromtheeffectsofchangesincoolingandheatingdegree-daysonelectricandnaturalgasdemandcomparedtotheprior-yearbasedontemperaturereadingsfromtheNationalOceanicandAtmosphericAdministration.(c)RepresentsthechangeinthenetrecoveryoffuelcostsundertheFACrecoveredfromcustomerrates,withcorrespondingoffsetstofuel expense.2011versus2010 AmerenAmerenselectricmarginsdecreasedby$95million,or2%,in2011comparedwith2010.Thefollowingitemshad anunfavorableimpactonAmerenselectricmargins:
Lowersalesprices,includinghedgeeffects,attheMerchantGenerationsegmentduetoreductionsin higher-marginsalesresultingfromtheexpirationofthe 2006auctionpowersupplyagreementsonMay31, 2010,andlowermarketpricesresultinginfewer opportunitiesforeconomicpowersales,which decreasedmarginsby$61million.
Excludingtheestimatedimpactofabnormalweather,rate-regulatedretailsalesvolumesdeclined1%,
attributabletocontinuedeconomicpressure,energy efficiencymeasuresandcustomerconservationefforts, whichdecreasedrevenuesby$52million.
LowerwholesalesalesatAmerenMissouriduetoareductionincustomers,theexpirationoffavorably pricedcontractsandtheinclusionofrevenuesfromthe remainingcontractsasanoffsettofuelcostsinthe FACbeginningJuly31,2011,whichdecreased revenuesby$43million.
Summerweatherconditionsin2011werenotashotasaveryhot2010,asevidencedbya4%decreasein 38 coolingdegree-days,whichdecreasedrevenuesby$36million.However,weatherconditionsinAmerens serviceterritoryin2011werestillwarmerthannormal asevidencedby19%morecoolingdegree-days.
NetunrealizedMTMlossesprincipallyattheMerchantGenerationsegment(primarilyatMarketingCompany),
relatedtononqualifyingpowerhedgesandfuel-related contracts,whichdecreasedmarginsby$26million.
DecreasedutilizationofMerchantGenerationsenergycenters,primarilyduetoplannedandunplanned outagesandlowermarketpricesresultinginfewer opportunitiesforeconomicpowersales.Decreased utilizationresultedina$23milliondeclineinnon-rate-regulatedsales.Thisdeclinewasmitigatedbya
$12milliondecreaseinMerchantGeneration productionvolumeandothercosts.
A$17millionreductioninrevenues,recordedinthesecondquarterof2011,atAmerenMissouriresulting fromtheMoPSCsorderwithrespecttoitsFAC disallowancefortheperiodfromMarch1,2009,to September30,2009.SeeNote2-RateandRegulatory MattersunderPartII,Item8,forfurtherinformation regardingtheFACprudencereview.
DecreasedrecoveryofprioryearsbaddebtexpenseatAmerenIllinois,throughtheIllinoisbaddebtrider, whichbecameeffectiveinMarch2010,which decreasedmarginsby$17million.SeeOperationsand Maintenanceinthissectionforadditionalinformation onarelatedoffsettingdecreaseinbaddebtexpense.
6%higherfuelpricesintheMerchantGenerationsegment,primarilyduetohighercommodityand transportationcostsassociatedwithnewsupply contracts,whichdecreasedmarginsby$17million.ThefollowingitemshadafavorableimpactonAmerenselectricmarginsin2011comparedwith2010:
HigherelectricbaseratesatAmerenMissouri,effectiveJune2010andJuly2011,whichincreasedrevenuesby
$172million,offsetbyanincreaseinnetbasefuel expense($31million),whichwasaresultofhighernet basefuelcostratesapprovedinthe2010and2011 MoPSCrateordersandduetohigherfueland transportationcosts.Netbasefuelexpenseisthesum offuelandtransportationcostsincludedinbaserates
(-$84million)andoff-systemrevenues(+$53million)intheabovetable.SeebelowforadditionaldetailsregardingtheFAC.
HigherelectricdeliveryserviceratesatAmerenIllinois,effectiveinearlyMayandNovember2010,which increasedmarginsby$20million,andhigherwholesale revenuesduetoanincreaseinelectricdeliveryservice rateseffectiveApril2011,whichincreasedmarginsby
$9million.SeeNote2-RateandRegulatoryMatters underPartII,Item8,forfurtherinformationregarding the2011wholesaledistributionratecase.
IncreasedrecoveryofenergyefficiencyprogramcostsandenvironmentalremediationcoststhroughIllinois rate-adjustmentmechanismsatAmerenIllinois,which increasedmarginsby$6million.SeeOtherOperations andMaintenanceExpensesinthissectionforinformationonarelatedoffsettingincreaseinenergyefficiencyandenvironmentalremediationcosts.AmerensrevenuesassociatedwithIllinoispass-throughpowersupplycostsdecreased$113million becauseoflowerpowerpricesonsalesprimarilyto nonaffiliatedparties.Theserevenueswereoffsetbya correspondingnetdecreaseinpurchasedpower.AmerenMissourihasaFACcostrecoverymechanismthatallowsAmerenMissouritorecover,throughcustomer rates,95%ofchangesinfuelandpurchasedpowercosts, netofoff-systemrevenues,includingMISOcostsand revenues,greaterorlessthantheamountsetinbaserates, withoutatraditionalrateproceeding.AmerenMissouri accrued,asaregulatoryasset,fuelandpurchasedpower coststhatweregreaterthantheamountsetinbaserates(FACunder-recovery).NetrecoveryoffuelcostsundertheFACthroughcustomerratesincreasedby$89millionin 2011,ascomparedwith2010,withcorrespondingoffsets tofuelexpensetoreducethepreviouslyrecognizedFAC regulatoryasset.Seebelowforexplanationsofelectricand naturalgasmarginvariancesfortheAmerenMissouri
segment.Amerensnaturalgasmarginsdecreasedby$17million,or4%,in2011comparedwith2010.The followingitemshadanunfavorableimpactonAmerens naturalgasmargins:
DecreasedrecoveryofprioryearsbaddebtexpensethroughtheIllinoisbaddebtrideratAmerenIllinois, whichbecameeffectiveMarch2010,decreased marginsby$14million.SeeOtherOperationsand MaintenanceExpensesinthissectionforadditional informationonarelatedoffsettingdecreaseinbaddebt
expense.Unfavorablewinterweatherconditions,asevidencedbya6%decreaseinheatingdegree-days,which decreasedrevenuesby$6million.Comparedto normal,Amerenexperienced3%fewerheatingdegree-daysin2011.
4%lowernativeloadsalesvolumes,excludingtheestimatedimpactofabnormalweather,largelyinthe commercialandindustrialsectors,attributableto continuedeconomicpressuredecreasedmarginsby
$4million.Amerensnaturalgasmarginswerefavorablyaffectedby$8millionin2011comparedwith2010duetohigher naturalgasrateseffectiveFebruary2011atAmeren MissouriandeffectiveinMayandNovember2010at AmerenIllinois.AmerenMissouriAmerenMissourihasaFACcostrecoverymechanism,whichisoutlinedintheAmerenmarginsectionabove.AmerenMissouriselectricmarginsincreasedby$19million,or1%,in2011comparedwith2010.Ameren Missouriselectricmarginswerefavorablyaffectedby 39 higherelectricbaserates,effectiveinJune2010andJuly2011($172million),offsetbyincreasednetbasefuel expense($31million),whichwasaresultofhighernetbase fuelcostratesapprovedinthe2010and2011MoPSCrate ordersandduetohigherfuelandtransportationcosts.Net basefuelexpenseisthesumoffuelandtransportation costsincludedinbaserates(-$84million)andoff-system revenues(+$53million)intheabovetable.ThefollowingitemshadanunfavorableimpactonAmerenMissouriselectricmarginsin2011comparedwith
2010:Lowerwholesalesalesduetoareductionincustomers,theexpirationoffavorablypricedcontracts,andthe inclusionofrevenuesfromtheremainingcontractsas anoffsettofuelcostsintheFACbeginningJuly31, 2011,whichdecreasedrevenuesby$43million.
Excludingtheestimatedimpactofabnormalweather,rate-regulatedretailsalesvolumesdeclinedby1%,
attributabletocontinuedeconomicpressure,energy efficiencymeasures,andcustomerconservation efforts,whichdecreasedrevenuesby$37million.
Summerweatherconditionsin2011werenotashotasaveryhot2010,asevidencedbya3%decreasein coolingdegree-days,whichdecreasedrevenuesby
$29million.However,weatherconditionsinAmeren Missourisserviceterritoryin2011werestillwarmer thannormalasevidencedby20%morecooling
degree-days.
A$17millionreductioninrevenues,recordedinthesecondquarterof2011,resultingfromtheMoPSCs orderwithrespecttoitsFACdisallowanceforthe periodfromMarch1,2009toSeptember30,2009.See Note2-RateandRegulatoryMattersunderPartII, Item8,forfurtherinformationregardingtheFAC prudencereview.AmerenMissourisnaturalgasmarginsincreasedby$4million,or5%,in2011comparedwith2010.Ameren Missourisnaturalgasmarginswerefavorablyaffectedby highernaturalgasrates,effectiveFebruary2011,which increasedmarginsby$5million.AmerenIllinoisRegulatedSegmentAmerenIllinoishasacostrecoverymechanismforpowerpurchasedonbehalfofitscustomers.Thesepass-throughpowercostsdonotaffectmargins;however,the electricrevenuesandoffsettingpurchasedpowercostsmay fluctuate,primarilybecauseofcustomerswitchingto alternativepowerprovidersandusage.AmerenIllinoisdoes notgenerateearningsbasedontheresaleofpower,but ratheronthedeliveryofenergy.AmerenIllinoiselectricmarginsdecreasedby$9million,or1%,in2011comparedwith2010.The followingitemshadanunfavorableimpactonelectric
margins:DecreasedrecoveryofprioryearsbaddebtexpenseundertheIllinoisbaddebtrider,whichbecame effectiveinMarch2010,whichdecreasedmarginsby$17million.SeeOperationsandMaintenanceinthissectionforadditionalinformationonarelatedoffsetting decreaseinbaddebtexpense.
Continuedeconomicpressure,energyefficiencymeasures,andcustomerconservationefforts,which decreasedrevenuesby$15million.
Summerweatherconditionsin2011werenotashotasaveryhot2010,asevidencedbya5%decreasein coolingdegree-days,whichdecreasedrevenuesby
$7million.However,weatherconditionsinAmeren Illinoisserviceterritoryin2011werestillwarmerthan normalasevidencedby18%morecoolingdegree-
days.ThefollowingitemshadafavorableimpactonAmerenIllinoiselectricmarginsin2011comparedwith2010:
Higherelectricdeliveryservicerates,effectiveinearlyMayandNovember2010,increasedmarginsby$20millionandhigherwholesalerevenuesduetoanincreaseinelectricdeliveryservicerateseffectiveApril 2011,whichincreasedmarginsby$9million.SeeNote 2-RateandRegulatoryMattersunderPartII,Item8, forfurtherinformationregardingthe2011wholesale distributionratecase.
IncreasedrecoveryofenergyefficiencyprogramcostsandenvironmentalremediationcoststhroughIllinoisrate-adjustmentmechanisms,whichincreasedmarginsby$6million.SeeOperationsandMaintenanceinthis sectionforinformationonarelatedoffsettingincreasein energyefficiencyandenvironmentalremediationcosts.AmerenIllinoisnaturalgasmarginsdecreasedby$21million,or6%,in2011comparedwith2010.The followingitemshadanunfavorableimpactonAmeren Illinoisnaturalgasmargins:
DecreasedrecoveryofprioryearsbaddebtexpenseundertheIllinoisbaddebtrider,whichbecame effectiveMarch2010,whichdecreasedmarginsby
$14million.SeeOtherOperationsandMaintenance Expensesinthissectionforadditionalinformationona relatedoffsettingdecreaseinbaddebtexpense.
Unfavorablewinterweatherconditions,asevidencedbya5%decreaseinheatingdegree-days,decreased revenuesby$5million.However,comparedtonormal, AmerenIllinoisexperiencedin2011a2%decreasein heatingdegree-days.
Nativeloadsalesvolumesdeclinedby4%,excludingtheestimatedimpactofabnormalweather,largelyin thecommercialandindustrialsectors,attributableto continuedeconomicpressure,whichdecreased revenuesby$4million.AmerenIllinoisgasmarginswerefavorablyaffectedby$3millionduetohighernaturalgasrateseffectivein MayandNovember2010.MerchantGenerationMerchantGenerationselectricmarginsdecreasedby$112million,or14%,in2011comparedwith2010.See belowforexplanationsofelectricmarginvariancesforthe MerchantGenerationsegment.
40 GencoGencoselectricmarginsdecreasedby$73million,or13%,in2011comparedwith2010.Thefollowingitemshad anunfavorableimpactonelectricmargins:
LowerrevenuesallocatedtoGencounderitspowersupplyagreement(GencoPSA)withMarketing Company.Therewasasmallerpoolofmoneyto allocatebecauseofreductionsinhigher-marginsales, aftertheexpirationoflong-termcontractsandbecause oflowermarketprices.However,inaccordancewith theGencoPSA,Gencowasallocatedahigher percentageofrevenuesfromthepoolbecauseof higherreimbursableexpensesandgreaterlevelsof generationrelativetoAERG.Gencoalsoexperienced lowermarketpricesassociatedwithEEIspowersupply agreementwithMarketingCompany(EEIPSA).The combinedimpactoflowermarketpricesunderboth powersupplyagreementsresultedinanunfavorable pricevariance,whichreducedrevenuesby$58million.
Thedecreaseinrevenueswasmitigatedbyafavorable settlementofacontractdisputewithalargecustomer inthesecondquarterof2011.
5%higherfuelprices,primarilyduetohighercommodityandtransportationcostsassociatedwith escalationsinexistingtransportationagreementsand newcommoditysupplyagreements,whichdecreased marginsby$11million.
NetunrealizedMTMactivityonfuel-relatedtransactions,primarilyassociatedwithfinancial instrumentsthatwereacquiredtomitigatetheriskof risingdieselfuelpriceadjustmentsembeddedincoal transportationcontracts,andonnonqualifyingpower hedges,whichdecreasedmarginsby$10million.Gencosenergycenterutilizationin2011wascomparablewith2010.Gencosproductionvolumeincreased electricrevenuesby$2million,whichwasoffsetbya
$2millionincreaseinMerchantGenerationproduction volumeandothercosts.Gencosaveragecapacityfactor remainedunchangedat71%in2011and2010,butGencos equivalentavailabilityfactordecreasedto86%in2011, comparedwith88%in2010.OtherMerchantGenerationElectricmarginsfromAmerensotherMerchantGenerationoperations,primarilyAERGandMarketing Company,decreasedby$39million,or16%,in2011 comparedwith2010.Thefollowingitemshadan unfavorableimpactonelectricmargins:
DecreasedenergycenterutilizationatAERG,primarilyduetoplannedandunplannedoutagesandlowermarket pricesresultinginfeweropportunitiesforeconomic powersales.AERGslowerproductionvolumedecreased electricrevenuesby$25million,mitigatedbya
$14milliondeclineinMerchantGenerationproduction volumeandothercosts.AERGsaveragecapacityfactor decreasedto73%in2011,comparedwith75%in2010, andAERGsequivalentavailabilityfactordecreasedto 81%in2011,comparedwith85%in2010.
UnfavorablenetunrealizedMTMactivity,principallyatMarketingCompany,largelyrelatedtononqualifying powerhedges,whichdecreasedmarginsby
$15million.
6%higherfuelpricesatAERG,primarilyduetohighercommodityandtransportationcostsassociatedwith escalationsinexistingtransportationagreementsand newcommoditysupplyagreements,decreased marginsby$6million.
LowerrevenuesallocatedtoAERGunderitspowersupplyagreement(AERGPSA)withMarketing Company.Therewasasmallerpoolofmoneyto allocatebecauseofreductionsinhigher-marginsales, aftertheexpirationoflong-termcontractsandbecause oflowermarketprices.InaccordancewiththeAERG PSA,AERGwasalsoallocatedalowerpercentageof revenuesfromthepoolbecauseoflowerreimbursable expensesandlowerlevelsofgenerationrelativeto Genco.Thelowermarketpricesresultedinan unfavorablepricevariance,whichdecreasedrevenues by$3million.Thedecreaseinrevenueswasmitigated byafavorablesettlementofacontractdisputewitha largecustomerinthesecondquarterof2011.2010versus2009 AmerenAmerenselectricmarginsincreasedby$202million,or5%,in2010comparedwith2009.Thefollowingitems hadafavorableimpactonAmerenselectricmargins:
Favorableweatherconditions,asevidencedbya52%increaseincoolingdegree-days,whichincreased revenuesby$174million.Weatherconditionsin Amerensserviceterritorywerewarmerthannormal,as evidencedby35%morecoolingdegree-days.
HigherelectricbaseratesatAmerenMissouri,effectiveMarch2009andJune2010,whichincreasedrevenues by$162million,offsetbynetbasefuelexpense
($93million),whichwasaresultofhighernetbasefuel costratesapprovedinthe2010MoPSCrateorderand duetohigherfuelandtransportationcostsandreduced off-systemrevenues.Netbasefuelexpenseisthesum offuelandtransportationcostsincludedinbaserates
(+$9million)andoff-systemrevenues(-$102million) intheabovetable.Seebelowforadditionaldetails regardingtheFAC.
IncreasedAmerenMissourisalestoNorandain2010,asitssmelterplantgraduallyreturnedtofullcapacityin March2010,afterasevereJanuary2009storm significantlyreducedtheplantscapacity,which increasedrevenuesby$54million.
HighertransmissionrevenuesprimarilyassociatedwithhigherFERC-regulatedtransmissionratesatAmeren Illinois,whichincreasedmarginsby$49million.Higher ratesweredue,inpart,toasignificantincreasein transmissionassetsplacedintoserviceatAmeren Illinoisduring2009,higherequitylevelsasaresultof AmerenscapitalcontributionstoAmerenIllinoisin 2009toimproveitscreditprofile,andmild2009
weather.41 HigherelectricdeliveryserviceratesatAmerenIllinois,effectiveinearlyMayandNovember2010,aswellas theadjustmentofresidentialelectricdeliveryrates effectiveinOctober2009,torecoverthefullincreaseof IPs2008ICCrateorder,whichincreasedmarginsby
$41million.
NetunrealizedMTMactivityprincipallyattheMerchantGenerationsegment(primarilyatMarketingCompany),
relatedtononqualifyingpowerhedges,whichincreased marginsby$49million.
IncreasedrecoveryofenergyefficiencyprogramcostsandenvironmentalremediationcoststhroughIllinois rate-adjustmentmechanismsatAmerenIllinois,which increasedmarginsby$29million.SeeOperationsand Maintenanceinthissectionforinformationonarelated offsettingincreaseinenergyefficiencyprogramcosts andenvironmentalremediationcosts.
ExcludingtheimpactofAmerenMissourisincreasedsalestoNorandaandtheestimatedimpactofabnormal weather,rate-regulatedretailsalesvolumesincreased by3%,largelybecauseofimprovedeconomic conditions,whichincreasedrevenuesby$25million.
Areductionintheimpactofthe2007IllinoisElectricSettlementAgreement,whichincreasedmarginsby
$23million.
IncreasedrecoveryofprioryearsbaddebtexpensethroughtheIllinoisbaddebtrideratAmerenIllinois, whichbecameeffectiveMarch2010,whichincreased marginsby$14million.SeeOperationsand Maintenanceinthissectionforadditionalinformation onarelatedoffsettingincreaseinbaddebtexpense.ThefollowingitemshadanunfavorableimpactonAmerenselectricmarginsfor2010comparedwith2009:
Reductionsinhigher-marginsalesattheMerchantGenerationsegmentaftertheexpirationofthe2006 auctionpowersupplyagreementsonMay31,2010, andlowermarketpricesthatresultedinfewer opportunitiesforeconomicpowersales,which decreasedmarginsby$243million.
14%higherfuelpricesintheMerchantGenerationsegment,primarilyduetohighercommodityand transportationcostsassociatedwithnewsupply contracts,whichdecreasedmarginsby$71million.
Inthefirstquarterof2009,thereversalofpreviouslyunrealizedlossesrelatedtoregulatoryassetsresulted intherecognitionofa$29millionnetMTMgainon energyandfuel-relatedcontractsatAmerenMissouri.
AftertheimplementationofAmerenMissourisFACin March2009,AmerenMissourisnetMTMgainsor lossesnolongeraffectelectricmargins.Netunrealized MTMactivityattheMerchantGenerationsegmenton fuel-relatedtransactions,primarilyassociatedwith financialinstrumentsacquiredtomitigatetheriskof risingdieselfuelpriceadjustmentsembeddedincoal transportationcontracts,reducedmarginsby
$20million.AmerensIllinoispass-throughpowersupplycostsreflectlowerpowerpricesandtheexpirationof intercompanypowersupplyagreementsbetweenAmerenIllinoisandMarketingCompany.AmerenIllinoispurchasedpowerfromMarketingCompanyfromJanuary1,2007, throughMay31,2010,underpowersupplyagreements enteredintofollowinga2006Illinoispowerprocurement auction.Thepurchasesandsalesundertheseagreements wereeliminatedinconsolidationforAmerensfinancial statements.Subsequenttotheexpirationofthese agreementsinMay2010,MarketingCompanyspower salesandAmerenIllinoispowerpurchaseshavebeen madeprimarilywithnonaffiliatedparties.Asaresult, Amerensconsolidatedrevenuesincreasedbyanet
$220millionin2010comparedwith2009.Theserevenues wereoffsetbyacorresponding$220millionnetincreasein purchasedpowercosts.AmerenMissourihasaFACcostrecoverymechanismthatallowsAmerenMissouritorecover,throughcustomer rates,95%ofchangesinfuelandpurchasedpowercosts, netofoff-systemrevenues,includingMISOcostsand revenues,greaterorlessthantheamountsetinbaserates, withoutatraditionalrateproceeding.AmerenMissouri accrued,asaregulatoryasset,fuelandpurchasedpower coststhatweregreaterthantheamountsetinbaserates (FACunder-recovery).Netrecoveryoffuelcostsunderthe FACthroughcustomerratesincreasedby$60millionin 2010,ascomparedwith2009,withcorrespondingoffsetsto fuelexpensetoreducethepreviouslyrecognizedFAC regulatoryasset.Seebelowforexplanationsofelectricand naturalgasmarginvariancesfortheAmerenMissouri
segment.Amerensnaturalgasmarginsincreasedby$2million,orlessthan1%,in2010comparedwith2009.The followingitemshadafavorableimpactonAmerensnatural gasmargins:
IncreasedrecoveryofprioryearsbaddebtexpensethroughtheIllinoisbaddebtrideratAmerenIllinois, effectiveMarch2010,whichincreasedmarginsby
$15million.SeeOperationsandMaintenanceinthis sectionforadditionalinformationonarelatedoffsetting increaseinbaddebtexpense.
Favorablehigher-margincustomermixthatwasmitigatedbya2%decreaseinsalesvolumes,which increasedmarginsby$2million.ThefollowingitemshadanunfavorableimpactonAmerensnaturalgasmarginsin2010comparedwith2009:
LowernaturalgasrateseffectiveearlyMay2010atAmerenIllinois,whichreducedmarginsby$11million.
TheabsenceofnetunrealizedMTMgainsin2010of$6milliononnaturalgasswaps.AmerenMissouriAmerenMissourihasaFACcostrecoverymechanismasdiscussedintheAmerenmargindiscussionabove.
42 AmerenMissouriselectricmarginsincreasedby$250million,or13%,in2010comparedwith2009.The followingitemshadafavorableimpactonAmeren Missouriselectricmargins:
Higherelectricbaserates,effectiveMarch2009andJune2010,whichincreasedrevenuesby$162million, offsetbynetbasefuelexpense($93million),which wasaresultofhighernetbasefuelcostratesapproved inthe2010MoPSCrateorderandduetohigherfuel andtransportationcostsandreducedoff-systemrevenues.Netbasefuelexpenseisthesumoffuelandtransportationcostsincludedinbaserates
(+$9million)andoff-systemrevenues(-$102million) intheabovetable.
Favorableweatherconditions,asevidencedbya44%increaseincoolingdegree-days,whichincreased revenuesby$134million.Weatherconditionsin AmerenMissourisserviceterritorywerewarmerthan normalasevidencedby45%morecoolingdegree-
days.IncreasedsalestoNorandain2010asitssmelterplantgraduallyreturnedtofullcapacityinMarch2010,after asevereJanuary2009stormsignificantlyreducedthe plantscapacity,whichincreasedelectricrevenuesby
$54million.
TaumSaukenergycentersreturntoservice.AlthoughTaumSaukwasnotavailabletogenerateelectricityfor off-systemrevenuesduring2009,AmerenMissouri hadincluded$19millioninthecalculationoftheFAC asifTaumSaukhadgeneratedoff-systemrevenues.
UponTaumSauksreturntoserviceinApril2010, AmerenMissourismarginsincreased.Theadjustment factorwaseliminatedfromtheFACcalculation,which increasedmarginsby$12million.
ExcludingtheimpactofincreasedsalestoNorandaandtheestimatedimpactofabnormalweather,rate-regulatedretailsalesvolumesincreasedbylessthan 1%,largelybecauseofimprovedeconomicconditions, whichincreasedrevenuesby$9million.AmerenMissouriselectricmarginwasunfavorablyaffectedbythereversalofpreviouslyunrealizedlossesto regulatoryassets,whichresultedintherecognitionofa
$29millionnetMTMgainonenergyandfuel-related contractsinthefirstquarterof2009.Thisbenefitdidnot recurin2010.AftertheimplementationoftheFACinMarch 2009,netMTMgainsorlossesnolongeraffectelectric
margins.AmerenMissourisnaturalgasmarginsincreasedby$2million,or3%,in2010comparedwith2009becauseof a2%increaseinsalesvolumes,largelyduetoimproved economicconditions.AmerenIllinoisRegulatedSegmentAmerenIllinoishasacostrecoverymechanismforpowerpurchasedonbehalfofitscustomers.Thesepass-throughpowercostsdonotaffectmargins;however,the electricrevenuesandoffsettingpurchasedpowercostsmay fluctuate,primarilybecauseofcustomerswitchingto alternativeprovidersandusage.AmerenIllinoiselectricmarginsincreasedby$179million,or20%,in2010comparedwith2009.The followingitemshadafavorableimpactonelectricmargins:
HighertransmissionrevenuesprimarilyassociatedwithhigherFERC-regulatedtransmissionrates,which increasedrevenuesby$42million.Higherrateswere due,inpart,toanincreaseintransmissionassets placedintoserviceduring2009,higherequitylevels resultingfromAmerenscapitalcontributionstoIPin 2009,andmild2009weather.
Higherelectricdeliveryservicerates,effectiveinearlyMayandNovember2010,aswellastheadjustmentofresidentialelectricdeliveryrateseffectiveOctober1, 2009,atIPtorecoverthefullincreaseofthe2008ICC rateorder,whichincreasedmarginsby$41million.
Favorableweatherconditions,asevidencedbya65%increaseincoolingdegree-days,whichincreased revenuesby$40million.WeatherconditionsinAmeren Illinoisserviceterritorywerewarmerthannormal,as evidencedby23%morecoolingdegree-days.
IncreasedrecoveryofenergyefficiencyprogramcostsandenvironmentalremediationcoststhroughIllinois rate-adjustmentmechanisms,whichincreasedmargins by$29million.SeeOperationsandMaintenanceinthis sectionforinformationonarelatedoffsettingincrease inenergyefficiencyprogramcostsandenvironmental remediationcosts.
IncreasedrecoveryofprioryearsbaddebtexpenseundertheIllinoisbaddebtrider,effectiveMarch2010, whichincreasedmarginsby$14million.See OperationsandMaintenanceinthissectionfor additionalinformationonarelatedoffsettingincreasein baddebtexpense.
Areductionintheimpactofthe2007IllinoisElectricSettlementAgreement,whichincreasedmarginsby
$10million.AmerenIllinoisnaturalgasmarginsincreasedby$2million,or1%,in2010comparedwith2009.The followingitemshadafavorableimpactonnaturalgas
margins:IncreasedrecoveryofprioryearsbaddebtexpenseundertheIllinoisbaddebtrider,effectiveMarch2010, whichincreasedmarginsby$15million.See OperationsandMaintenanceinthissectionfor additionalinformationonarelatedoffsettingincreasein baddebtexpense.
Ahigher-margincustomermixthatwasmitigatedbya3%decreaseinsalesvolumes,whichincreased marginsby$2million.ThefollowingitemshadanunfavorableimpactonAmerenIllinoisnaturalgasmarginsin2010comparedwith
2009:LowernaturalgasrateseffectiveearlyMay2010,whichreducedmarginsby$11million.
TheabsenceofnetunrealizedMTMgainsin2010of$6milliononnaturalgasswaps,asoccurredin2009.
43 MerchantGenerationMerchantGenerationselectricmarginsdecreasedby$232million,or23%,in2010comparedwith2009.See belowforexplanationsofelectricmarginvariancesforthe MerchantGenerationsegment.
GencoGencoselectricmarginsdecreasedby$118million,or18%,in2010comparedwith2009.Thefollowingitemshad anunfavorableimpactonelectricmargins:
LowerrevenuesallocatedtoGencounderitspowersupplyagreement(GencoPSA)withMarketing Company.Therewasasmallerpoolofmoneyto allocatebecauseofreductionsinhigher-marginsales, aftertheexpirationofolderlong-termcontractsand becauseoflowermarketprices.Thelowermarket pricesassociatedwiththeGencoPSAweremitigated byhighermarketpricesassociatedwithEEIspower supplyagreementwithMarketingCompany(EEIPSA).
Thenetimpactoflowermarketpricesunderboth powersupplyagreementsreducedelectricrevenuesby
$81million.InaccordancewiththeGencoPSA,Genco wasalsoallocatedalowerpercentageofrevenuesfrom thepoolbecauseoflowerreimbursableexpensesand lowergenerationrelativetoAERG.
14%higherfuelprices,primarilyduetohighercommodityandtransportationcostsassociatedwith newsupplycontracts,whichdecreasedmarginsby
$51million.
NetunrealizedMTMactivityonfuel-relatedtransactionsprimarilyassociatedwithfinancialinstrumentsthat wereacquiredtomitigatetheriskofrisingdieselfuel priceadjustmentsembeddedincoaltransportation contracts,whichreducedmarginsby$19million.ThefollowingitemshadafavorableimpactonGencoselectricmarginsin2010comparedwith2009:
Areductionintheimpactofthe2007IllinoisElectricSettlementAgreement,whichincreasedmarginsby
$10million.
Increasedenergycenterutilization,primarilyduetomoreeconomicsalesopportunitiesandareductionin transmissionconstraints,whichpreviouslylimitedthe periodinwhichpowercouldbesold.Inaddition,oneof Gencoscoal-firedenergycentersexperienceda transformerfireinSeptember2009,whichputtwounits outofserviceforatimein2009.Thehigherproduction volumecontributedtothe$50millionincreaseinelectric revenues,whichwasmitigatedbyhigherMerchant Generationproductionvolumeandothercostsof
$38million.Gencosbaseloadcoal-firedenergycenters averagecapacityfactorincreasedto71%in2010, comparedwith67%in2009,andGencosequivalent availabilityfactorincreasedto88%in2010,compared with82%in2009.OtherMerchantGenerationElectricmarginsfromAmerensotherMerchantGenerationoperations,primarilyAERGandMarketingCompany,decreasedby$114million,or32%,in2010comparedwith2009.Thefollowingitemshadan unfavorableimpactonelectricmargins:
LowerrevenuesallocatedtoAERGunderitspowersupplyagreement(AERGPSA)withMarketing Company.Therewasasmallerpoolofmoneyto allocatebecauseofreductionsinhigher-marginsales aftertheexpirationofolderlong-termcontractsand becauseoflowermarketprices.Theseitemsreduced electricmarginsby$162million.However,in accordancewiththeAERGPSA,AERGwasallocateda greaterpercentageofrevenuesfromthepoolbecause ofhigherreimbursableexpensesandhighergeneration relativetoGenco.
19%higherfuelpricesatAERGprimarilyduetohighercommodityandtransportationcostsassociatedwith newsupplycontracts,whichdecreasedmargins
$20million.ThefollowingitemshadafavorableimpactontheelectricmarginsofotherMerchantGenerationoperationsin 2010comparedwith2009:
NetunrealizedMTMactivityatMarketingCompanyimprovedmarginsby$46million,largelyrelatedto nonqualifyingpowerhedges.
Areductionintheimpactofthe2007IllinoisElectricSettlementAgreementatAERG,whichincreased marginsby$4million.
IncreasedenergycenterutilizationatAERG,primarilyduetomoreopportunitiesforeconomicsalesanda reductioninenergycenteroutages.Thehigherproductionvolumeincreasedelectricrevenuesby$37million,whichwaspartiallyoffsetbyhigher MerchantGenerationproductionvolumeandother costsof$9million.AERGsbaseloadcoal-firedenergy centersaveragecapacityfactorincreasedto75%in 2010,comparedwith69%in2009,whileAERGs equivalentavailabilityfactorincreasedto85%in2010, comparedwith78%in2009.OtherOperationsandMaintenanceExpenses2011versus2010AmerenCorporationOtheroperationsandmaintenanceexpenseswerecomparablebetween2011and2010.Thefollowingitemsreducedotheroperationsandmaintenanceexpensesbetweenyears:
Chargesin2010of$22millionduetocancelledorunrecoverableprojectsatAmerenMissourithatdidnot recurin2011.
Adecreaseof$20millioninplantmaintenancecosts,primarilybecausethescopeoftheoutagesin2011 werenotasextensiveasthescopeoftheoutages performedin2010.Costsassociatedwiththe2011 refuelingandmaintenanceoutageatAmerenMissouris Callawayenergycenterwereconsistentwithcosts incurredforthe2010refuelingandmaintenance
outage.44 A$17milliondecreaseinbaddebtexpense.Baddebtexpensedecreasedprimarilybecauseofadjustments undertheAmerenIllinoisbaddebtridermechanism.
ExpenserecordedundertheAmerenIllinoisbaddebt ridermechanismisrecoveredthroughcustomer billings,withnooveralleffectonnetincome.
A$5milliondecreaseinemployeebenefitcosts,primarilybecauseofadjustmentsunderAmeren Missourispensionandpostretirementbenefitcost
tracker.Disciplinedcostmanagementeffortstoalignspendingwithregulatoryoutcomesandeconomicconditions.Thefollowingitemsincreasedotheroperationsandmaintenanceexpensesbetweenyears:
A$34millionincreaseinstorm-relatedrepaircosts,duetomajorstormsin2011.
Recognitionof$28millionofemployeeseverancecostsrelatedtothevoluntaryseparationoffersto eligibleAmerenMissouriandAmerenServices employeesin2011,$27millionofwhichAmeren Missouriwillseektorecoverinitspendingelectricrate
case.Areductioninotheroperationsandmaintenanceexpensesin2010by$11millionforaMay2010 MoPSCrateorder,whichresultedintherecordingof regulatoryassetsrelatedto2009employeeseverance costsandstormcosts.
Anunfavorablechangeof$9millioninunrealizednetMTMadjustmentsbetweenyears,resultingfrom changesinthemarketvalueofinvestmentsusedto supportAmerensdeferredcompensationplans.
A$5millionincreaseinAmerenIllinoisenergyefficiencyandenvironmentalremediationcosts,which arerecoveredthroughcustomerbillingsandoffsetby increasedrevenues,withnooverallimpactonnet
income.VariationsinotheroperationsandmaintenanceexpensesinAmerensbusinesssegmentsandforthe AmerenCompaniesbetween2011and2010wereas
follows:AmerenMissouriOtheroperationsandmaintenanceexpenseswerecomparablebetweenyears.Thefollowingitemsincreasedotheroperationsandmaintenanceexpensesbetweenyears:
Recognitionof$27millionofemployeeseverancecostsbecauseofavoluntaryseparationplanin2011.
A$21millionincreaseinstorm-relatedrepaircosts,duetomajorstormsin2011.
Areductioninotheroperationsandmaintenanceexpensesin2010by$11millionfortheMay2010 MoPSCrateorderdiscussedabove.
Anunfavorablechangeof$5millioninunrealizednetMTMadjustmentsbetweenyears,resultingfrom changesinthemarketvalueofinvestmentsusedto supportAmerensdeferredcompensationplans.Thefollowingitemsreducedotheroperationsandmaintenanceexpensesbetweenyears:
Plantmaintenancecostsdecreasedby$23million,primarilybecausethescopeoftheoutagesin2011 werenotasextensiveasthescopeoftheoutages performedin2010.
Chargesin2010of$22millionbecauseofcancelledorunrecoverableprojects.
A$9milliondecreaseinemployeebenefitcosts,primarilybecauseofadjustmentsunderthepension andpostretirementbenefitcosttracker.
Disciplinedcostmanagementeffortstoalignspendingwithregulatoryoutcomesandeconomicconditions.AmerenIllinoisRegulatedSegmentOtheroperationsandmaintenanceexpenseswerecomparablein2011with2010.Thefollowingitemsincreasedotheroperationsandmaintenanceexpensesbetweenyears:
A$13millionincreaseinstorm-relatedrepaircosts,duetomajorstormsin2011.
Energyefficiencyandenvironmentalremediationcostsincreasedby$5million,asdiscussedabove.
Injuriesanddamagesexpenseswerehigherby$4millionbecauseofincreasedclaims.
Expensesof$3millionassociatedwiththeelectricratecasein2011werewritten-offbecausetheratecase waswithdrawnafterpassageoftheIEIMA.
Areductioninotheroperationsandmaintenanceexpensesin2010by$3millionforaMay2010ICCrate order,whichresultedintherecordingofaregulatory assetrelatedto2009employeeseverancecosts.Thefollowingitemsreducedotheroperationsandmaintenanceexpensesbetweenyears:
A$19millionreductioninbaddebtexpense.Adjustmentsof$31millionunderthebaddebtrider mechanismwerepartiallyoffsetbyhigheruncollectible
expense.Areductionof$5millioninnon-storm-relateddistributionmaintenanceexpendituresdue,inpart,to costmanagementefforts.MerchantGenerationandGencoOtheroperationsandmaintenanceexpenseswerecomparablebetweenyearsintheMerchantGeneration segmentasincreasedemployeebenefitcosts,primarily pensioncosts,aswellashigherplantmaintenancecosts resultingfromincreasedplannedoutagesatAERG,mitigated thefavorableimpactofpropertysalegainsatGenco.Otheroperationsandmaintenanceexpensesdecreasedby$12millionin2011atGenco,primarilybecauseofa
$7millionincreaseingainsonpropertysales.2010versus2009AmerenCorporationOtheroperationsandmaintenanceexpensesincreasedby$53millionin2010comparedwith2009.
45 Thefollowingitemsincreasedotheroperationsandmaintenanceexpensesbetweenyears:
Increasedplantmaintenanceandlaborcostsof$39millionassociatedwitharefuelingand maintenanceoutageattheCallawayenergycenterand anincreaseof$16millionforotherscheduledcoal-firedplantoutages,theinstallationofscrubbersat AmerenMissourisSiouxenergycenter,andother maintenancework.TherewasnoCallawayenergy centerrefuelingandmaintenanceoutagein2009.
A$46millionincreaseinbaddebtexpense.TheJuly2009capitalizationandrecoveryofprioryearsbad debtexpenseundertheAmerenIllinoisbaddebtrate adjustmentmechanism(netofarelateddonationfor customerassistanceprograms)reducedbaddebt expensein2009.Additionally,baddebtexpense increasedin2010,becauseofamortizationof regulatoryassetssetupinconjunctionwiththeAmeren Illinoisbaddebtrateadjustmentmechanismin2009.
Amortizationexpenseassociatedwiththeseregulatory assetswasoffsetbyincreasedrevenuesthrough collectionfromcustomers,withnooverallimpacton netincome.
IncreasedAmerenIllinoisenergyefficiencyprogramcostsandenvironmentalremediationcostsof
$30million.Energyefficiencyprogramcostsare allowedtoberecoveredfromcustomersunderthe 2007IllinoisElectricSettlementAgreement; environmentalremediationcostsassociatedwithMGPs arerecoverablefromcustomersthroughAmeren Illinoisenvironmentaladjustmentrateriders.
Accordingly,thesecostsareoffsetbyincreased revenues,withnooverallimpactonnetincome.See Note2-RateandRegulatoryMattersandNote15-CommitmentsandContingenciesunderPartII,Item8, ofthisreportforadditionalinformation.
Anunfavorablechangeof$7millioninunrealizednetMTMadjustmentsbetweenyears,resultingfrom changesinthemarketvalueofinvestmentsusedto supportAmerensdeferredcompensationplans.Thefollowingitemsreducedotheroperationsandmaintenanceexpensesbetweenyears:
Theabsencein2010ofmajorstorms,suchasthosein2009,whichresultedina$27millionreductioninother operationsandmaintenanceexpenses.
Severancecostsof$17millionforemployeeseparationprogramsrecognizedin2009,ascomparedwith
$4millionin2010.
AMay2010MoPSCelectricrateorder,whichresultedinAmerenMissourirecordingregulatoryassetsin2010 relatedtoemployeeseverancecosts,andstormcosts incurredin2009,whichdecreasedexpensesby
$11million.
Areductioninlaborcostsof$10million,primarilybecauseofstaffreductions.
ItemsthatunfavorablyaffectedAmerenin2009thatdidnotrecurin2010:a$5millionpenaltyincurredforthe terminationofaheavyforgingscontractassociatedwitheffortstobuildanewnuclearunitatAmerenMissourisCallawayenergycenteranda$5million write-offofAmerensinvestmentinasupplyacquisition
partnership.
AgainonthesaleofpropertyinterestsatGencorecognizedin2010.VariationsinotheroperationsandmaintenanceexpensesinAmerensbusinesssegmentsandforthe AmerenCompaniesbetween2010and2009wereas
follows:AmerenMissouriOtheroperationsandmaintenanceexpensesincreasedby$51millionin2010.Thefollowingitemsincreasedotheroperationsandmaintenanceexpensesbetweenyears:
Plantmaintenanceandlaborcostsincreasedby$39millionasaresultoftheCallawayenergycenter refuelingandmaintenanceoutageandby$34million forotherscheduledcoal-firedplantoutages,the installationofscrubbersattheSiouxenergycenter,and othermaintenanceworkandplant-relatedcosts.
Anunfavorablechangeof$4millioninunrealizednetMTMadjustmentsbetweenyearsresultingfrom changesinthemarketvalueofinvestmentsusedto supportAmerensdeferredcompensation.
Higherbaddebtexpenseof$5million,primarilyduetohighercustomerbillingsresultingfromrateincreases andweatherconditions.Thefollowingitemsreducedotheroperationsandmaintenanceexpensesbetweenyears:
Theabsenceofmajorstorms,suchasthosein2009,whichresultedinadecreaseinotheroperationsand maintenanceexpensesof$13million.
Therecordingofregulatoryassetsin2010relatedtoemployeeseverancecostsandstormcostsincurredin 2009,asdiscussedabove.
Theabsenceofseverancecostsforemployeeseparationprogramsandtheabsenceoftheforgings contractpenaltyrecognizedin2009,asdiscussed
above.AmerenIllinoisRegulatedSegmentOtheroperationsandmaintenanceexpensesincreasedby$45millionin2010.Thefollowingitemsincreasedotheroperationsandmaintenanceexpensesbetweenyears:
A$40millionincreaseinbaddebtexpenseresultingfromtheJuly2009capitalizationandrecoveryofprior yearsbaddebtexpenseundertheAmerenIllinoisbad debtrateadjustmentmechanism(netofarelated donationforcustomerassistanceprograms),which decreasedbaddebtexpensein2009,andthe amortizationin2010ofregulatoryassetssetupin 46 conjunctionwiththeAmerenIllinoisbaddebtrateadjustmentmechanismin2009.
Energyefficiencyandenvironmentalremediationcostsincreasedby$30million,asdiscussedabove.Thefollowingitemsreducedotheroperationsandmaintenanceexpensesbetweenyears:
Theabsenceofmajorstormsin2010,ascomparedwithstormcostsof$16millionin2009.
Areductionof$9millioninemployeebenefitcostsdue,inpart,totheabsenceofseverancecostsin2010such asthoseincurredin2009.MerchantGenerationOtheroperationsandmaintenanceexpensesdecreasedby$46millionin2010intheMerchantGenerationsegment, primarilybecauseofvariationsatGenco,asdiscussed below.Additionally,otheroperationsandmaintenance expensesdecreasedatAERG,primarilybecauseoflower laborcostsduetostaffreductions,andreducedseverance costsduetoemployeeseparationprogramsthatwere implementedin2009.
GencoOtheroperationsandmaintenanceexpensesdecreasedby$35millionin2010.Plantmaintenancecostswerelower by$16millionduetotheretirementin2009oftwo generationunitsatGencosMeredosiaenergycenterand otherreductionsinrequiredmaintenancework.
Additionally,otheroperationsandmaintenancecostswere lowerduetoa$7millionreductioninemployeebenefit costs,due,inpart,toreducedseverancecostsbecauseof employeeseparationprogramsin2009,a$5milliondecline inlaborcostsresultingfromstaffreductions,anda propertysalegainin2010.Goodwill,ImpairmentandOtherChargesThefollowingtablesummarizesgoodwill,impairmentandotherchargesfortheyearsendedDecember31,2011, 2010,and2009:
Long-livedAssetsand Related Charges EmissionAllowancesGoodwillTotal 2011:AMO.........$89$-$-$89 Genco........341-35 AERG........-1-1 Ameren.......$123$2$-$125 2010: Genco........$64$41$65$170 AERG........3727355419 Ameren.......$101$68$420$589 2009: Genco........$6$-$-$6 AERG........1--1 Ameren.......$7$-$-$7SeeNote1-SummaryofSignificantAccountingPolicies,Note2-RateandRegulatoryMatters,Note15-CommitmentandContingencies,andNote17-Goodwill, ImpairmentandOtherChargesunderPartII,Item8,ofthis reportforadditionalinformation.AmerenCorporationGoodwill,impairmentandotherchargesdecreasedby$464millionin2011.AmerenMissouriandGencorecorded long-livedassetimpairmentsandrelatedchargesin2011, whicharediscussedindividuallybelow.Additionally, AmerenandGencorecordedintangibleassetimpairment chargesin2011relatingtoemissionallowancesof
$2millionand$1million,respectively.Largerimpairments wererecordedin2010,whenAmerenrecognizednoncash, pretaximpairmentchargesrelatingtogoodwill,long-lived assets,andemissionallowanceswithintheMerchant Generationsegment.Theimpairmentsrecordedin2010in theMerchantGenerationsegmentwerecausedbya sustaineddeclineinmarketpricesforelectricity,industry marketmultiplesbecomingobservableatlowerlevelsthan previouslyestimated,andpotentiallymorestringent environmentalregulationsbeingenacted.AmerenMissouriInJuly2011,theMoPSCissuedanelectricrateorderthatdisallowedtherecoveryofcostsofenhancements relatingtotherebuildingoftheTaumSaukenergycenterin excessoftheamountsrecoveredfrompropertyinsurance.
Asaresult,AmerenMissourirecordedapretaxchargeto earningsof$89millionin2011.SeeNote2-Rateand RegulatoryMatterstoourfinancialstatementsunderPartII, Item8,ofthisreportforadditionalinformationonthe disallowance,includingAmerenMissourisappealofthe MoPSCsJuly2011electricrateorder.MerchantGenerationandGencoAttheendof2011,GencoceasedoperationsofitsMeredosiaandHutsonvilleenergycenters.Theclosureof theseenergycenterswasprimarilytheresultofthe expectedcostofcomplyingwiththeCSAPRandtheMATS.
Gencodeterminedthatenvironmentalcomplianceoptions forthesefourunitswereuneconomical.Anotherfactor drivingtheclosureoftheseenergycenterswasalackofa multiyearcapacitymarketmanagedbyMISO,withoutwhich Gencowasnotpositionedtomakethesubstantial investmentforenvironmentalcontrolsthatwouldbe requiredtokeeptheseunitsinservice.Asaresultofthese closures,AmerenandGencoeachrecordedachargeto earningsin2011of$34million.Largerimpairmentswere recordedin2010,whenAmerenandGencorecognized noncash,pretaximpairmentchargesrelatingtogoodwill, long-livedassets,andemissionallowances.In2009,Gencorecordedassetimpairmentchargesof$6millionasaresultoftheterminationofarailline extensionprojectatasubsidiaryofGencoandtoadjustthe carryingvalueofanofficebuildingownedbyGencotoits estimatedfairvalueasofDecember31,2009.Inaddition, AERGrecordedanassetimpairmentchargeof$1millionto adjustthecarryingvalueofitsIndianTrailsgeneration facilitysestimatedfairvalueasofDecember31,2009.
47 DepreciationandAmortization2011versus2010AmerenCorporationAmerensdepreciationandamortizationexpensesincreasedby$20millionin2011comparedwith2010, becauseofitemsnotedbelow.Partiallymitigatingthese increaseswasan$8millionreductionindepreciationand amortizationexpensesatAmerenServices,primarily becauseofcomputerequipmentbecomingfully-depreciated during2011.VariationsindepreciationandamortizationexpensesinAmerensbusinesssegmentsandfortheAmeren Companiesbetween2011and2010wereasfollows:AmerenMissouriDepreciationandamortizationexpensesincreasedby$26millionin2011,primarilybecauseofincreased depreciationandamortizationexpenseresultingfromthe installationofscrubbersattheSiouxenergycenterand othercapitaladditions.Additionally,anincreaseinAmeren Missourisannualdepreciationratesasaresultofthe2010 MoPSCelectricrateorderresultedinhigherdepreciation andamortizationexpenses.AmerenIllinoisRegulatedSegmentDepreciationandamortizationexpensesincreasedby$5millionin2011,primarilybecauseofcapitaladditions.MerchantGenerationandGencoDepreciationandamortizationexpenseswerecomparablebetweenyearsintheMerchantGeneration SegmentandatGenco.2010versus2009AmerenCorporationAmerensdepreciationandamortizationexpensesincreasedby$40millionin2010comparedwith2009, becauseofitemsnotedbelow.VariationsindepreciationandamortizationexpensesinAmerensbusinesssegmentsandfortheAmeren Companiesbetween2010and2009wereasfollows:AmerenMissouriDepreciationandamortizationexpensesincreasedby$25millionin2010,primarilybecauseofcapitaladditionsand anincreaseinAmerenMissourisannualdepreciationratesdue largelytotheadoptionofthelifespandepreciation methodologyasaresultofthe2010MoPSCelectricrateorder.AmerenIllinoisRegulatedSegmentDepreciationandamortizationexpensesdecreasedby$6millionin2010,primarilybecauseofareductionin amortizationofregulatoryassets.AnICCrateorderinApril 2010extendedtheamortizationperiodoftheIPintegration-relatedregulatoryasset.SeeNote2-RateandRegulatory MatterstoourfinancialstatementsunderPartlI,Item8,of thisreportforadditionalinformation.MerchantGenerationandGencoDepreciationandamortizationexpensesincreasedby$20millionin2010intheMerchantGenerationsegment, primarilybecausedepreciationandamortizationexpenses increasedby$17millionin2010atGenco,duetocapital additionsandincreaseddepreciationratesresultingfrom depreciationstudiesperformedin2009.TaxesOtherThanIncomeTaxes2011versus2010AmerenCorporationTaxesotherthanincometaxesincreasedby$8millionin2011comparedwith2010,primarilybecauseofitems notedbelowatAmerenMissouri.VariationsintaxesotherthanincometaxesinAmerensbusinesssegmentsandfortheAmeren Companiesbetween2011and2010wereasfollows:AmerenMissouriTaxesotherthanincometaxesincreasedby$11millionin2011,primarilybecauseofincreased propertytaxes,duetohigherstateandlocalassessments andhighertaxrates,andhighergrossreceiptstaxesfrom increasedrevenues.AmerenIllinoisRegulatedSegmentTaxesotherthanincometaxeswerecomparablebetweenyears.Increasedpropertytaxesin2011,primarily duetohighertaxrates,weremitigatedbytheabsenceof franchisetaxesthatwereincurredin2010inassociation withtheAmerenIllinoisMerger.MerchantGenerationandGencoTaxesotherthanincometaxeswerecomparablebetweenyearsintheMerchantGenerationSegmentandat
Genco.2010versus2009AmerenCorporationTaxesotherthanincometaxesincreasedby$29millionin2010comparedwith2009,becauseofitems notedbelow.
48 VariationsintaxesotherthanincometaxesinAmerensbusinesssegmentsandfortheAmeren Companiesbetween2010and2009wereasfollows:AmerenMissouriTaxesotherthanincometaxesincreasedby$28millionin2010,primarilybecauseofhighergross receiptstaxesasaresultofincreasedsales,andbecauseof increasedpropertytaxesduetohigherassessedtaxratesin
Missouri.AmerenIllinoisRegulatedSegmentandMerchant GenerationTaxesotherthanincometaxeswerecomparablebetweenyearsintheAmerenIllinoisRegulatedSegment,in theMerchantGenerationsegment,andatGenco.OtherIncomeandExpenses2011versus2010AmerenCorporationMiscellaneousincome,netofexpenses,decreasedby$11millionin2011comparedwith2010,primarilybecause ofitemsnotedbelow.Variationsinmiscellaneousincome,netofexpenses,inAmerensbusinesssegmentsandfortheAmeren Companiesbetween2011and2010wereasfollows:AmerenMissouriMiscellaneousincome,netofexpenses,decreasedby$19millionin2011,primarilybecauseofreducedallowance forequityfundsusedduringconstruction.Allowancefor equityfundsusedduringconstructionwashigherin2010, primarilyduetoscrubbersbeingconstructedatAmeren MissourisSiouxenergycenter,whichwereplacedin serviceinlate2010.AmerenIllinoisRegulatedSegmentMiscellaneousincome,netofexpenses,increasedby$7millionin2011,primarilybecauseofreducedexpenses associatedwithcustomerassistanceprograms.MerchantGenerationandGencoMiscellaneousincome,netofexpenses,wascomparablebetweenyearsintheMerchantGeneration SegmentandatGenco.2010versus2009AmerenCorporationMiscellaneousincome,netofexpenses,increasedby$9millionin2010comparedwith2009,becauseofitems notedbelow.Variationsinmiscellaneousincome,netofexpenses,inAmerensbusinesssegmentsandfortheAmeren Companiesbetween2010and2009wereasfollows:AmerenMissouriMiscellaneousincome,netofexpenses,increasedby$14millionin2010,primarilybecauseofhigherallowance forequityfundsusedduringconstructionassociatedwitha projecttoinstallscrubbersatAmerenMissourisSioux energycenter,reduced,inpart,byincreasedcharitable
contributions.AmerenIllinoisRegulatedSegmentAmerenIllinoishadnetmiscellaneousexpenseof$6millionin2010,comparedwithnetmiscellaneous incomeof$2millionin2009.Interestincomedecreasedby
$5millionin2010comparedwith2009,becausetheCIPS notereceivablefromGencomaturedonMay1,2010.MerchantGenerationandGencoMiscellaneousincome,netofexpenses,wascomparablebetweenyearsintheMerchantGeneration SegmentandatGenco.InterestCharges2011versus2010AmerenCorporationInterestchargesdecreasedby$46millionin2011comparedwith2010,becauseofitemsnotedbelowand becauseofreducedcreditfacilityborrowingsatAmeren.VariationsininterestchargesinAmerensbusinesssegmentsandfortheAmerenCompaniesbetween2011 and2010wereasfollows:AmerenMissouriInterestchargesdecreasedby$4millionin2011,primarilybecauseofareductionininterestcharges associatedwithuncertaintaxpositionsof$6million,the redemptionof$66millionofsubordinateddeferrable interestdebenturesinSeptember2010,andreduced amortizationofcreditfacilityfees.Offsettingthesefavorable itemswasareductionininterestchargesin2010duetothe May2010MoPSCelectricrateorder.Therateorder resultedinareductionofinterestchargesof$10millionin 2010,throughtherecordingofaregulatoryassetfor recoveryofbankcreditfacilityfeesincurredin2009.AmerenIllinoisRegulatedSegmentInterestchargesdecreasedby$7millionin2011,primarilybecauseoftheredemptionof$150millionof seniorsecurednotesinJune2011andtheredemptionof
$40millionoffirstmortgagebondsinSeptember2010.
49 MerchantGenerationInterestchargesdecreasedby$28millionin2011intheMerchantGenerationsegmentbecauseofitems discussedbelowatGenco,andbecauseofreduced intercompanyborrowingsatAERG.
GencoInterestchargesdecreasedby$15millionin2011atGenco,primarilybecauseofthematurityandrepaymentof
$200millionofseniorunsecurednotesinNovember2010.2010versus2009AmerenCorporationInterestchargesdecreasedby$11millionin2010comparedwith2009,becauseofitemsnotedbelow.The decreasesbelowweremitigatedbyadditionalinterest chargesresultingfromtheissuanceof$425millionof seniornotesbyAmereninMay2009.VariationsininterestchargesinAmerensbusinesssegmentsandfortheAmerenCompaniesbetween2010 and2009wereasfollows:AmerenMissouriInterestchargesdecreasedby$16millionin2010.Interestchargeswerereducedby$10millionbecauseofa May2010MoPSCelectricrateorder,asdiscussedabove.
Additionally,interestchargeswerereducedbyanincrease inallowanceforborrowedfundsusedduringconstruction associatedwithaprojecttoinstallscrubbersattheSioux energycenter.Partiallyreducingtheabovebenefitswasan increaseininterestchargesassociatedwiththeissuanceof
$350millionofseniorsecurednotesinMarch2009.AmerenIllinoisRegulatedSegmentInterestchargesdecreasedby$10millionin2010,primarilybecauseofthematurityof$250millionoffirst mortgagebondsinJune2009.MerchantGenerationandGencoInterestchargesincreasedby$14millionin2010intheMerchantGenerationsegmentand$17millionat Genco,primarilybecauseoftheissuanceof$250millionof seniorunsecurednotesatGencoinNovember2009.IncomeTaxesThefollowingtablepresentseffectiveincometaxratesfortheregistrantsandbysegmentfortheyearsended December31,2011,2010,and2009:201120102009 Ameren..........................
37%68%(a)35%AmerenMissouri
...................
363533AmerenIllinoisRegulatedSegment
....393937 Genco...........................
42(b)38MerchantGeneration
................
41(c)38(a)Theeffectivetaxratewas36%for2010,afterexcludingtheimpactofthegoodwillimpairmentcharge,whichisnot deductibleforincometaxpurposes.(b)Theeffectivetaxratewas40%for2010,afterexcludingtheimpactofthegoodwillimpairmentcharge,whichisnot deductibleforincometaxpurposes.(c)Theeffectivetaxratewas30%for2010,afterexcludingtheimpactofthegoodwillimpairmentcharge,whichisnot deductibleforincometaxpurposes.2011versus2010AmerenCorporationAmerenseffectivetaxratewaslowerin2011thanin2010,primarilyduetotheimpactofthenondeductible goodwillimpairmentchargein2010.SeeNote17-Goodwill, ImpairmentandOtherChargesunderPartII,Item8,ofthis reportforadditionalinformationonthegoodwillimpairment charges.Inaddition,therewasanoncash,after-taxchargeto earningsof$13million,inthefirstquarterof2010,toreduce deferredtaxassets.Thechargetoearningswasrecorded becauseoflegislationenactedinthefirstquarterof2010that resultedinretireehealthcarecostsnolongerbeing deductiblefortaxpurposestotheextentanemployers postretirementhealthcareplanreceivesfederalsubsidiesthat provideretireeprescriptiondrugbenefitsequivalentto Medicareprescriptiondrugbenefits.Thiswasoffset,inpart, bytheimpactoftheincreasedIllinoisstatutorytaxrate effectiveatthebeginningof2011,alongwithlowerfavorable netamortizationofproperty-relatedregulatoryassetsand liabilitiesin2011comparedwith2010,changestoreserves foruncertaintaxpositions,andthedecreasedimpactof federalandstatetaxcredits.VariationsineffectivetaxratesinAmerensbusinesssegmentsandfortheAmerenCompaniesbetween2011 and2010wereasfollows:AmerenMissouriAmerenMissouriseffectivetaxratewashigher,primarilybecauseoflowerfavorablenetamortizationof property-relatedregulatoryassetsandliabilitiesin2011 comparedto2010,offset,inpart,bytheeffectofthe changeinthetaxtreatmentofretireehealthcarecostsin 2010andchangestoreservesforuncertaintaxpositions.AmerenIllinoisRegulatedSegmentAmerenIllinoisRegulatedSegmentseffectivetaxratewascomparablebetweenyears.MerchantGenerationTheeffectivetaxratewashigherintheMerchantGenerationsegment,primarilybecauseofitemsdetailedbelowatGenco.
50 GencoGencoseffectivetaxratewashigher,afterexcludingtheimpactofthenondeductiblegoodwillimpairmentcharge, primarilyduetotheincreaseintheIllinoisstatutoryincome taxratein2011,decreasedInternalRevenueCode Section199productionactivitydeductionsandlowerbenefits fromstatetaxcreditsrelatedtocapitalinvestments,offsetby favorablechangestoreservesforuncertaintaxpositionsin 2011,comparedtounfavorablechangesin2010,andthe decreaseintheeffectivetaxratefromtheeffectofthechange inthetaxtreatmentofretireehealthcarecostsin2010.2010versus2009AmerenCorporationAmerenseffectivetaxratewashigherin2010thanin2009,primarilyduetotheunfavorableimpactofthe goodwillimpairmentchargeandtheeffectofthechangein thetaxtreatmentofretireehealthcarecosts.Additional variationsarediscussedbelow.VariationsineffectivetaxratesforAmerensbusinesssegmentsandfortheAmerenCompaniesbetween2010 and2009wereasfollows.AmerenMissouriAmerenMissouriseffectivetaxratewashigher,primarilybecauseofthechangeintaxtreatmentofretiree healthcarecosts,alongwiththedecreasedimpactof favorablenetamortizationofproperty-relatedregulatory assetsandliabilitiesandotherpermanentitemsonhigher pretaxbookincome.AmerenIllinoisRegulatedSegmentTheeffectivetaxratewashigher,primarilybecauseofthedecreasedimpactoffavorablenetamortizationof property-relatedregulatoryassetsandliabilitiesand permanentitemsonhigherpretaxbookincome.MerchantGenerationTheeffectivetaxratewaslowerintheMerchantGenerationsegment,becauseofitemsdetailedbelowat Genco,partiallyoffsetbytheimpactofstatetaxcredits relatedtocapitalinvestmentsanddecreasedInternal RevenueCodeSection199productionactivitydeductions onapretaxbookloss.
GencoTheeffectivetaxrateincreased,aftertheimpactofthenondeductiblegoodwillimpairmentchargewasexcluded, primarilybecauseofthechangeintaxtreatmentofretiree healthcarecostsandchangestoreservesforuncertaintax positionsmitigatedbytheincreasedimpactofstatetax credits,InternalRevenueCodeSection199production activitydeductions,andinvestmenttaxcreditamortization onlowerpretaxbookincome.IncomefromDiscontinuedOperations,NetofTaxAmerenIllinoisOnOctober1,2010,Ameren,CIPS,CILCO,IP,AERGandAERcompletedatwo-stepcorporateinternal reorganization.Thefirststepofthereorganizationwasthe AmerenIllinoisMerger.Thesecondstepofthe reorganizationinvolvedthedistributionofAERGstockfrom AmerenIllinoistoAmerenandthesubsequentcontribution byAmerenoftheAERGstocktoAER.AmerenIllinois determinedthattheoperatingresultsofAERGqualifiedfor discontinuedoperationspresentation.Wehavetherefore segregatedAERGsoperatingresultsandpresentedthem separatelyasdiscontinuedoperationsforallperiods presentedpriortoOctober1,2010,inthisreport.For Amerensfinancialstatements,AERGsresultsofoperation remainclassifiedascontinuingoperations.SeeNote16-CorporateReorganizationandDiscontinuedOperations underPartII,Item8,ofthisreportforadditional
information.AmerenIllinoisincomefromdiscontinuedoperations(AERG)decreased$74millionin2010,comparedwith 2009.AERGsresultsofoperationswereincludedin AmerenIllinoisconsolidatedstatementofincomeforall periodspriortoOctober1,2010.Theinclusionofonlynine monthsin2010contributedtothedecreaseinincomefrom discontinuedoperationsaswellasadecreaseinelectric marginscausedbylowerrealizedrevenuepermegawatt soldandhigherfuelandrelatedtransportationcosts.The decreasewaspartiallyoffsetbyareductioninincometax expenseprimarilycausedbylowerpretaxbookincome.LIQUIDITYANDCAPITALRESOURCESThetariff-basedgrossmarginsofAmerensrate-regulatedutilityoperatingcompaniescontinuetobea principalsourceofcashfromoperatingactivitiesfor Amerenanditsrate-regulatedsubsidiaries.Adiversified retailcustomermixofprimarilyrate-regulatedresidential, commercial,andindustrialclassesandacommoditymixof naturalgasandelectricserviceprovideareasonably predictablesourceofcashflowsforAmeren,Ameren MissouriandAmerenIllinois.Foroperatingcashflows, Genco,throughMarketingCompany,sellspowerthrough primarilymarket-basedcontractswithwholesaleandretail customers.Inadditiontousingcashflowsfromoperating activities,theAmerenCompaniesuseavailablecash,creditfacilityborrowings,commercialpaperissuances,moneypoolborrowings,orothershort-termborrowingsfromaffiliatestosupportnormaloperationsandothertemporarycapitalrequirements.TheAmerenCompaniesmayreduce theircreditfacilityorshort-termborrowingswithcashfrom operationsor,attheirdiscretion,withlong-termborrowings or,inthecaseofAmerensubsidiaries,withequityinfusions fromAmeren.TheAmerenCompaniesexpecttoincur significantcapitalexpendituresoverthenextfiveyearsas theycomplywithenvironmentalregulationsandmake significantinvestmentsintheirelectricandnaturalgasutilityinfrastructuretosupportoverallsystemreliabilityand 51 otherimprovements.Amerenintendstofinancethosecapitalexpendituresandinvestmentswithablendofequity anddebtsothatitmaintainsacapitalstructureinitsrate-regulatedbusinessesofapproximately50%to55%equity, assumingconstructiveregulatoryenvironments.Ameren, AmerenMissouriandAmerenIllinoisplantoimplement theirlong-termfinancingplansfordebt,equity,orequity-linkedsecuritiesinordertofinancetheiroperations appropriately,meetscheduleddebtmaturities,andmaintain financialstrengthandflexibility.GencoandtheMerchant Generationsegmentseektofundtheiroperationsinternally andthereforeseeknottorelyonfinancingfromAmerenor external,third-partysources.GencoandtheMerchant Generationsegmentwillcontinuetoseektodefercapital andoperatingexpenses,sellcertainassets,andtakeother actionsasnecessarytofundtheiroperationsinternally whilemaintainingsafeandreliableoperations.Underits indenture,Gencomaynotborrowadditionalfundsfromexternal,third-partysourcesifitsinterestcoverageratioislessthanaspecifiedminimumoritsleverageratiois greaterthanaspecifiedmaximum.SeeNote5-Long-term DebtandEquityFinancingsunderPartII,Item8,ofthis reportforadditionalinformationonGencosindentureprovisions.BasedonprojectionsasofDecember31,2011,ofGencosoperatingresultsandcashflows,weexpectthat, bytheendofthefirstquarterof2013,Gencosinterest coverageratiowillbelessthantheminimumratiorequired forthecompanytoborrowadditionalfundsfromexternal, third-partysources.Gencosindenturedoesnotrestrict intercompanyborrowingsfromAmerensnon-state-regulatedsubsidiarymoneypool.However,borrowings fromthemoneypoolaresubjecttoAmerenscontrol,andif aGencointercompanyfinancingneedweretoarise, borrowingsfromthenon-state-regulatedsubsidiarymoney poolbyGencowouldbedependentonconsiderationby Amerenofthefactsandcircumstancesexistingatthattime.Thefollowingtablepresentsnetcashprovidedby(usedin)operating,investingandfinancingactivitiesfortheyearsendedDecember31,2011,2010,and2009:NetCashProvidedByOperatingActivitiesNetCash(UsedIn)InvestingActivitiesNetCashProvidedBy(UsedIn)FinancingActivities201120102009201120102009201120102009 Ameren (a)...........$1,878$1,823$1,967$(1,048)$(1,096)$(1,781)$(1,120)$(804)$344AmerenMissouri
.....1,056969975 (627)(700)(957)
(430)(334)249AmerenIllinois
.......504593845 (296)(247)(442)
(509)(330)(147)
Genco..............
215304253 (141)(29)(389)(72)(275)139(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.CashFlowsfromOperatingActivities2011versus2010 AmerenCorporation Amerenscashfromoperatingactivitiesincreasedin2011,comparedwith2010.Thefollowingitemscontributed totheincreaseincashfromoperatingactivitiesduring 2011,comparedwith2010:
AmerenMissourisregulatoryassetforFACunder-recoverydecreasedby$216millionasmoredeferred costswererecoveredfromcustomersduring2011.
Tradeaccountsreceivableandunbilledrevenuesbalancesdecreased,primarilybecauseofmilder weatherinthefourthquarterof2011,comparedwith thefourthquarterof2010.Thosesameweather conditionscausedaccountspayablebalancestoMISO andnaturalgassupplierstodecreaseaslesspower andnaturalgaswaspurchased.Additionally,during 2011,MISOshortenedthelengthofitssettlement termsforallofitsmembers.Thenewtermsresultedin anaccelerationofpaymentsthatpreviouslywouldnot havebeenpaiduntil2012.Thesefactorsresultedina netincreaseof$120millionincashfromoperating activitiesin2011comparedwith2010.
Anet$100milliondecreaseincollateralpostedwithcounterpartiesdueprimarilytotheitemsdiscussedat theregistrantsubsidiariesbelow,partiallyoffsetbyadecreaseincollateralreturnedfromAmerencounterpartiesof$10millionandadditionalcollateral postedtocounterpartiesof$4millionduetochanges inthemarketpriceofpower.
Deferredbudgetbillingreceivablesdecreasedby$71million,partiallyasaresultofmilderweather.
A$45milliondecreaseininterestpayments,primarilyduetothelong-termdebtredemptionsattheregistrant subsidiariesdiscussedbelowandareductionin Amerensborrowingsunderitscreditfacility agreements,whichresultedinan$11millionreduction ininterestpayments.
An$11millionreductioninpaymentsforschedulednuclearrefuelingandmaintenanceoutagesatthe Callawayenergycentercausedprimarilybythetiming ofthe2011outagecomparedwiththe2010outage, whichhadunpaidliabilitiesasofDecember31,2011.ThefollowingitemsreducedtheincreaseinAmerenscashfromoperatingactivitiesduring2011,comparedwith
2010:A$115millionincreaseinpensionandOPEBplancontributions.AmerenIllinoiscontributedtoAmerens postretirementbenefitVEBAtrustanincremental
$100millioninexcessofAmerenIllinoisannual postretirementnetperiodiccostforregulatory
purposes.Electricandnaturalgasmargins,asdiscussedinResultsofOperations,decreasedby$86million, 52 excludingimpactsofnoncashMTMtransactions.
During2010,AmerensMerchantGenerationcoal-firedenergycenters,significantlyreducedtheircoal inventorylevels,whichresultedinanestimated
$64millioncashsavingsinexcessofthesmaller inventoryreductionthatoccurredin2011.
A$55milliondecreaseassociatedwiththeDecember2005TaumSaukincident,primarilyasaresultof insurancerecoveriesreceivedin2010,butnotin2011.
A$34millionincreaseinmajorstormrestorationcosts.
A$31milliondecreaseinincometaxrefunds.The2010refundresultedprimarilyfroma2009changeintax treatmentofelectricgenerationplantexpenditures whilethe2011refundresultedprimarilyfromcasualty lossdeductionsduetoanInternalRevenueService auditsettlement.Amerendidnotmakeanyfederal incometaxpaymentsin2011becauseofaccelerated deductionsauthorizedbyeconomicstimulus legislation,useofitsnetoperatinglosscarryforwards, andotherdeductions.
A$30millionincreaseintaxesotherthanincometaxpaymentsrelatedtohigherassessedpropertytax valuesforenergycenterenhancements,county propertytaxrateincreases,thetimingofpropertytax paymentsateachyearendforAmerenMissouri.
AmerenIllinoisincurredanincreaseinelectricity distributionandinvestedcapitaltaxpaymentsresulting fromthetieredratestructureforthemergedentity.
ReducedcollectionsasmoreutilitycustomerswerepastdueontheirbillsonDecember31,2011,thanon December31,2010.Additionally,write-offsof customerreceivablebalancesincreasedbecauseof economicconditions.
An$18millionincreaseinAmerenMissourireceivablesheldincourtregistriesundertheappealsofthe MoPSCs2009and2010rateorders.SeeNote2-Rate andRegulatoryMattersunderPartII,Item8,ofthis reportforadditionalinformation.
A$16milliondecreaseinAmerenIllinoiselectricpurchasedpowercommodityover-recoveredcosts.
A$15millionincreaseinenergyefficiencyexpendituresfornewcustomerprograms.TheAmerenIllinois amountisrecoveredthroughcustomerbillingsover
time.An$11milliondecreaseinnaturalgascommodityover-recoveredcostsunderthePGA,primarilyin
Illinois.A$7millionincreaseinpreliminarystudyexpenditures,primarilyatAmerenMissouriforenvironmental compliancetesting.AmerenMissouriAmerenMissouriscashfromoperatingactivitiesincreasedin2011comparedwith2010.Thefollowingitems contributedtotheincreaseincashfromoperatingactivities during2011,comparedwith2010:
TheregulatoryassetforFACunder-recoverydecreasedby$216millionasmoredeferredcostswererecovered fromcustomersduring2011.
Tradeaccountsreceivableandunbilledrevenuebalancesdecreasedby$65million,primarilybecause ofmilderweatherinthefourthquarterof2011, comparedwiththefourthquarterof2010.
Deferredbudgetbillingreceivablesdecreasedby$33million,partiallyasaresultofmilderweather.
Electricandnaturalgasmargins,asdiscussedinResultsofOperations,increasedby$25million, excludingimpactsofnoncashMTMtransactions.
A$16milliondecreaseinpaymentsassociatedwithmajoroutagesatcoal-firedenergycenters,primarily becausethescopeofthemajoroutagesin2011were notasextensiveasthescopeofthemajoroutages performedin2010.
An$11millionreductioninpaymentsduetothetimingofschedulednuclearrefuelingandmaintenance outagesattheCallawayenergycenterasdiscussed
above.A$4milliondecreaseininterestpayments,primarilyduetotheredemptionofsubordinateddeferrable interestdebenturesinSeptember2010.ThefollowingitemsreducedtheincreaseinAmerenMissouriscashfromoperatingactivitiesduring2011, comparedwith2010:
Incometaxpaymentsof$9millionin2011,comparedwithincometaxrefundsof$106millionin2010.The 2010refundresultedprimarilyfroma2009changein taxtreatmentofelectricgenerationplantexpenditures andaccelerateddeductionsauthorizedbyeconomic stimuluslegislation.AmerenMissouris2011tax liabilitywasreducedbyaccelerateddeductions authorizedbyeconomicstimuluslegislation,useofits netoperatinglosscarryforwards,andotherdeductions.
A$55milliondecreaseassociatedwiththeDecember2005TaumSaukincident,primarilyasaresultof insurancerecoveriesreceivedin2010,butnotin2011.
A$23millionincreaseinpropertytaxpaymentscausedprimarilybyhigherassessedtaxvaluesforenergy centerenhancements,countytaxrateincreases,andthetimingofpropertytaxpaymentsateachyearend.
A$21millionincreaseinmajorstormrestorationcosts.
An$18millionincreaseinreceivablesheldincourtregistriesundertheappealsoftheMoPSCs2009and2010rateorders.
ReducedcollectionsasmorecustomerswerepastdueontheirbillsonDecember31,2011,thanon December31,2010.Additionally,write-offsof customerreceivablebalancesincreasedbecauseof economicconditions.
Anet$6milliondecreaseincollateralreturnedfromexchangecounterpartiesand,toalesserextent, additionalcollateralpostingstoMISO,alldueto changesinthemarketpriceofpowerandnaturalgas.
A$6millionincreaseinenergyefficiencyexpendituresfornewcustomerprograms.
A$6millionincreaseinpreliminarystudyexpenditures,primarilyforenvironmentalcompliancetesting.
53 AmerenIllinoisAmerenIllinoiscashfromoperatingactivitiesdecreasedin2011comparedwith2010.AmerenIllinois cashfromoperatingactivitiesincludedAERGsoperating cashflowsforallperiodspriortoOctober1,2010,which werepresentedasdiscontinuedoperationsinAmeren Illinoisconsolidatedstatementofcashflows.Excludingthe impactsofdiscontinuedoperations,AmerenIllinoiscash fromoperatingactivitiesdecreasedin2011comparedwith 2010.Thefollowingitemscontributedtothedecreasein cashfromoperatingactivitiesassociatedwithcontinuing operationsduring2011,comparedwith2010:
A$103millionincreaseinpensionandOPEBplancontributions.AmerenIllinoiscontributedtoAmerens postretirementbenefitVEBAtrustanincremental
$100millioninexcessofAmerenIllinoisannual postretirementnetperiodiccostforregulatorypurposes.
A$38milliondecreaseinincometaxrefundscausedprimarilybyareductionintransmissionand distributionrepairdeductions,partiallyoffsetby additionalcasualtylossdeductionsfromanInternal RevenueServiceauditsettlement.AmerenIllinoisdid notmakeanyfederalincometaxpaymentsin2011 becauseofaccelerateddeductionsauthorizedby economicstimuluslegislationandotherdeductions.
Electricandnaturalgasmargins,asdiscussedinResultsofOperations,decreasedby$30million, excludingimpactsofnoncashMTMtransactions.
A$16milliondecreaseinelectricpurchasedpowercommodityover-recoveredcosts.
A$13millionincreaseinmajorstormrestorationcosts.
ReducedcollectionresultsasmorecustomerswerepastdueontheirbillsonDecember31,2011,thanon December31,2010.Additionally,write-offsof customerreceivablebalancesincreasedbecauseof economicconditions.
A$9millionincreaseintaxesotherthanincomepayments,dueprimarilytoanincreaseinelectricity distributionandinvestedcapitaltaxpaymentsresulting fromthetieredratestructureforthemergedentity.
A$9milliondecreaseinnaturalgascommodityover-recoveredcostsunderthePGA.
A$9millionincreaseinenergyefficiencyexpendituresfornewcustomerprograms.Theseexpendituresare recoveredthroughcustomerbillingsovertime.ThefollowingitemsreducedthedecreaseinAmerenIllinoiscashfromoperatingactivitiesassociatedwith continuingoperationsduring2011,comparedwith2010:
Anet$120milliondecreaseincollateralpostedwithcounterpartiesdue,inpart,toareductioninthemarket priceofnaturalgasandincontractedvolumes.
Tradeaccountsreceivableandunbilledrevenuesbalancesdecreased,primarilybecauseofmilder weatherinthefourthquarterof2011,comparedwith thefourthquarterof2010.Thosesameweather conditionscausedaccountspayablebalancestoMISO andnaturalgassupplierstodecreaseaslesspowerandnaturalgaswaspurchased.Additionally,during2011,MISOshortenedthelengthofitssettlement termsforallofitsmembers.Thenewtermsresultedin anaccelerationofpaymentsthatpreviouslywouldnot havebeenpaiduntil2012.Thesefactorsresultedina netincreaseof$63millionincashfromoperating activitiesin2011comparedwith2010.
Deferredbudgetbillingbalancesdecreasedby$38million,partiallyasaresultofmilderweather.
An$11milliondecreaseininterestpayments,primarilyduetotheredemptionoffirstmortgagebondsin September2010.
GencoGencoscashfromoperatingactivitiesdecreasedin2011comparedwith2010.Thefollowingitemscontributed tothedecreaseincashfromoperatingactivitiesduring 2011,comparedwith2010:
Electricmargins,asdiscussedinResultofOperations,decreasedby$63million,excludingimpactsof noncashMTMtransactions.
During2010,Gencosignificantlyreducedthevolumeofitscoalinventory,whichresultedinanestimated
$43millioncashsavingsinexcessofthesmaller inventoryreductionthatoccurredin2011.
TheJanuary2010receiptfromMarketingCompanyforDecember2009generationoutputwas$16million higherthantheJanuary2011receiptforDecember 2010generationoutput.Thiswasprimarilycausedby theinclusionofhigher-pricedsalescontractsfromthe 2006Illinoispowerprocurementauction,whichexpired inMay2010.
A$9millionincreaseinpaymentsassociatedwithmajoroutagesatcoal-firedenergycenters,primarily becausethescopeofthemajoroutagesin2011were moreextensivethanthescopeofthemajoroutages performedin2010.
An$8millionincreaseinpensionplancontributionsasEEImadeacontributionin2011,butmadeno contributionin2010.ThefollowingitemsreducedthedecreaseinGencoscashfromoperatingactivitiesduring2011,comparedwith
2010:Incometaxrefundsof$25millionin2011,comparedwithincometaxpaymentsof$1millionin2010.The 2011refundwasprimarilyduetoanincreasein accelerateddepreciationdeductionsauthorizedbythe economicstimuluslegislation.Gencodidnotmakeany federalincometaxpaymentsin2011primarilybecause ofaccelerateddeductionsrelatedtopollutioncontrol equipment,economicstimuluslegislationand deductionsrelatedtotheclosureofMeredosiaand Hutsonvilleenergycenters.
A$20milliondecreaseininterestpayments,primarilyduetotheredemptionofseniornotesinNovember
2010.54 2010versus2009Amerenscashfromoperatingactivitiesdecreasedin2010comparedwith2009.Thefollowingitemscontributed tothedecreaseincashfromoperatingactivitiesduring 2010,comparedwith2009:
A$116milliondecreaseinbilledrevenues,netofpaymentstosuppliers,forpass-throughnaturalgas commoditycostsprimarilycausedbyhigher-priced naturalgasinjectedintostorageduring2008andbilled tocustomersin2009.
Accountsreceivableandunbilledrevenuebalancesincreasedby$106million,primarilybecauseofhigher utilityratesandcolderDecemberweatherin2010, comparedwithDecember2009.
DeferredFACcostsincreased$100millionasnetbasefuelcostsincurredatAmerenMissouriexceededthe amountsallowedinbaseratesduetohigherfuelcosts andloweroff-systemsalesasaresultofwarmer weatherincreasingnativeloaddemand.
Deferredbudgetbillingbalancesincreasedby$74million,partiallyasaresultofwarmersummer weather,whichincreasedsalesvolumesoverbudget-billedamounts.
Anoverall$56millionincreaseincollateralpostedwithcounterpartiesdue,inpart,totheitemsdiscussedat thesubsidiariesbelow,offsetbya$105million reductionincollateralpostedbynonregistrant subsidiaries,primarilyduetochangesinthemarket priceofpower.
A$53milliondecreaseassociatedwiththeDecember2005TaumSaukincident,primarilyasaresultof reducedinsurancerecoveries.
A$39millionincreaseinpaymentsrelatedtotheCallawayenergycenterrefuelingandmaintenance outagethatoccurredin2010,butdidnotoccurin2009.
A$14millionincreaseinpaymentsassociatedwithmajoroutagesatcoal-firedplants,primarilyatAmeren
Missouri.A$12millionincreaseinpropertytaxpaymentscausedprimarilybyhigherassessedtaxratesinMissouri.
A$10millionone-timedonationin2010forcustomerassistanceprogramsrequiredbythe2009Illinois energylegislationthatauthorizedthebaddebtrate adjustmentmechanismusedbyAmerenIllinois.
Paymentsforprofessionalservices,additionalfranchisetaxes,andotheradministrativeitemsnecessaryto completetheAmerenIllinoisMergerandAERG distributiontotaled$8million.ThefollowingitemsreducedthedecreaseinAmerenscashfromoperatingactivitiesduring2010,comparedwith
2009:Electricandnaturalgasmargins,asdiscussedinResultsofOperations,increasedby$212million, excludingimpactsofnoncashMTMtransactions.
Incometaxrefundsof$92millionin2010,comparedwithincometaxpaymentsof$9millionin2009.The refundprimarilyresultedfromanaccelerationofdepreciationdeductionsauthorizedbyeconomicstimuluslegislation.
Amerenreduceditscoalinventorylevels,primarilyattheMerchantGenerationsegment,in2010.The inventoryreductionisestimatedtohaveresultedin cashsavingsof$69millionin2010.
A$32milliondecreaseinmajorstormrestoration costs.Contributionstothepensionandpostretirementplanswere$31millionlowerin2010.
A$14millionreductioninseverancepaymentsasaresultofthevoluntaryandinvoluntaryseparation programsinitiatedinbothyears.AmerenMissouriAmerenMissouriscashfromoperatingactivitiesdecreasedin2010comparedwith2009.Thefollowing itemscontributedtothedecreaseincashfromoperating activitiesduring2010,comparedwith2009:
A$102milliondecreaseinincometaxrefunds,primarilyduetohigherpretaxbookincomeanda reductionin2010ofthebenefitofachangeintax treatmentofelectricgenerationplantexpenditures takenin2009.
DeferredFACcostsincreased$100millionasnetbasefuelcostsincurredexceededtheamountsallowedin baseratesduetohigherfuelcostsandlower off-systemsalesasaresultofwarmerweather increasingnativeloaddemand.
A$53milliondecreaseassociatedwiththeDecember2005TaumSaukincidentdiscussedabove.
A$39millionincreaseinpaymentsrelatedtoaCallawaynuclearplantrefuelingandmaintenance outagethatoccurredin2010,butdidnotoccurin
2009.A$24millionincreaseinpaymentsassociatedwithmajoroutagesatcoal-firedplants.
A$12millionincreaseinpropertytaxpayments,causedprimarilybyhigherassessedtaxrates.
An$11millionincreaseinenergyefficiencyexpendituresfornewcustomerprograms.ThefollowingitemsreducedthedecreaseinAmerenMissouriscashfromoperatingactivitiesduring2010, comparedwith2009:
ElectricandnaturalgasmarginsasdiscussedinResultsofOperations,increasedby$281million, excludingthenoncashimpactsofMTMtransactions.
A$31millionreductionincollateralpostedwithcounterpartiesdueinparttoimprovedcreditratingsand tochangesinthemarketpriceofpowerandnaturalgas.
A$13milliondecreaseinmajorstormrestoration costs.Contributionstothepensionandpostretirementplanswere$8millionlowerin2010.
A$5millionreductioninseverancepaymentsasaresultofthevoluntaryandinvoluntaryseparation programsinitiatedinbothyears.
55 AmerenIllinoisAmerenIllinoiscashfromoperatingactivitiesdecreasedin2010comparedwith2009.AmerenIllinois cashfromoperatingactivitiesincludedAERGsoperating cashflowsforallperiodspriortoOctober1,2010,which werepresentedasdiscontinuedoperationsinAmeren Illinoisconsolidatedstatementofcashflows.Excludingthe impactsofdiscontinuedoperations,AmerenIllinoiscash fromoperatingactivitiesdecreasedin2010comparedwith 2009.Thefollowingitemscontributedtothedecreasein cashfromoperatingactivitiesassociatedwithcontinuing operationsduring2010,comparedwith2009:
A$192millionincreaseincollateralpostedwithcounterpartiesdue,inpart,tochangesinthemarket priceofnaturalgasandcollateralpostingrequirements.
Accountsreceivableandunbilledrevenuebalancesincreasedby$183million,primarilybecauseofhigher utilityratesandcolderDecemberweatherin2010, comparedwithDecember2009.
A$98milliondecreaseinbilledrevenues,netofpaymentstosuppliers,forpass-throughnaturalgas commoditycostsprimarilycausedbyhigher-priced naturalgasinjectedintostorageduring2008andbilled tocustomersin2009.
Deferredbudgetbillingbalancesincreasedby$60million,partiallyasaresultofwarmersummer weather,whichincreasedsalesvolumesoverbudget billedamounts.
A$10millionone-timedonationin2010forcustomerassistanceprogramsrequiredbythe2009Illinois legislationthatauthorizedthebaddebtrateadjustment
mechanism.
Paymentsforprofessionalservices,additionalfranchisetaxes,andotheradministrativeitemsnecessaryto completetheAmerenIllinoisMergerandAERG distribution,whichtotaled$7million.
In2009,AmerenIllinoisreceived$5millionfromMarketingCompanyforthecostsofupgradesto AmerenIllinoiselectrictransmissionsystem.There wasnosuchreceiptin2010.ThefollowingitemsreducedthedecreaseinAmerenIllinoiscashfromoperatingactivitiesassociatedwith continuingoperationsduring2010,comparedwith2009:
Electricandnaturalgasmargins,asdiscussedinResultsofOperations,increasedby$187million, excludingthenoncashimpactsofMTMtransactions.
Incometaxrefundsof$52millionin2010,comparedwithincometaxpaymentsof$61millionin2009.The refundresultedprimarilyfromanaccelerationof depreciationdeductionsauthorizedbyeconomic stimuluslegislation.
A$19milliondecreaseinmajorstormrestoration costs.Contributionstothepensionandpostretirementplanswere$11millionlowerin2010.
A$6milliondecreaseininterestpayments,primarilybecauseofthefirstmortgagebondmaturityinJune
2009.AmerenIllinoiscashfromoperatingactivitiesassociatedwithdiscontinuedoperationsdecreasedin2010compared with2009.AERGscashflowswereincludedinAmeren Illinoisconsolidatedstatementofcashflowsforallperiods priortoOctober1,2010.Theinclusionofonlyninemonthsin 2010wastheprimarycauseofthedecreaseincashflows, alongwithareductioninreceiptsfromMarketingCompany undertheAERGPSA,primarilyduetolowermarketprices.A decreaseinincometaxpayments,primarilyduetolower pretaxbookincome,andanaccelerationofdepreciation deductionsauthorizedbyeconomicstimuluslegislation partiallyoffsetthedecreaseinAERGsoperatingcashflows.
GencoGencoscashfromoperatingactivitiesincreasedin2010comparedwith2009.Thefollowingitemscontributed totheincreaseincashfromoperatingactivitiesduring 2010,comparedwith2009:
A$73milliondecreaseinincometaxpayments,primarilyduetolowerpretaxbookincome,deductions relatingtoenvironmentalexpenditures,andan accelerationofdepreciationdeductionsauthorizedby economicstimuluslegislation.
Reducedcoalinventorylevelsin2010,whichareestimatedtohaveresultedincashsavingsof$50million in2010.Lowerlaborexpendituresresultingfromstaffreductionsandfewermajoroutagesatitscoal-fired
plants.A$7millionreductioninusetaxpaymentsasGencoandEEIbeganclaimingtaxexemptionsandcreditsfor purchasetransactionsrelatedtotheirgeneration
operations.
Contributionstothepensionplanswere$6millionlowerin2010.ThefollowingitemsreducedtheincreaseinGencoscashfromoperatingactivitiesduring2010,comparedwith
2009:Electricmargins,asdiscussedinResultofOperations,decreasedby$99million,excludingimpactsof noncashMTMtransactions.
A$13millionincreaseininterestpayments,primarilyduetotheseniorunsecurednotesissuedinNovember 2009,whichrequiredinterestpaymentsin2010,but notin2009.PensionFundingAmerenspensionplansarefundedincompliancewithincometaxregulationsandtomeetfederalfundingor regulatoryrequirements.Asaresult,Amerenexpectsto funditspensionplansatalevelequaltothegreaterofthe pensionexpenseorthelegallyrequiredminimum contribution.ConsideringAmerensassumptionsat December31,2011,itsinvestmentperformancein2011, anditspensionfundingpolicy,Amerenexpectstomake annualcontributionsof$90millionto$150millionineach ofthenextfiveyears,withaggregateestimated contributionsof$580million.WeexpectAmeren 56 Missouris,AmerenIllinois,andGencosportionofthefuturefundingrequirementstobe51%,33%and12%,
respectively.Theseamountsareestimates.Theestimates maychangewithactualinvestmentperformance,changes ininterestrates,changesinourassumptions,anypertinent changesingovernmentregulations,andanyvoluntary contributions.In2011,Amerencontributed$103millionto itspensionplans.SeeNote11-RetirementBenefitsunder PartII,Item8,ofthisreportforadditionalinformation.CashFlowsfromInvestingActivities2011versus2010Amerenscashusedininvestingactivitiesdecreasedby$48millionduring2011,comparedwith2010.In2011, cashflowsfrominvestingactivitiesbenefitedfroman increaseofproceedsfrompropertysalesaswellas
$8millioninproceedsfromthesaleofitsinvestmentina leveragedleaseanda$9millionpaymentreceivedfromthe DOEunderthetermsofAmerenMissourissettlementwith theDOEin2011relatedtonuclearwastedisposal.Netcash usedforcapitalexpendituresdecreased$12millionduring 2011,comparedwith2010.Reductionsincapital expenditurescausedbythecompletionoftwoenergy centerscrubberprojectsin2010wereoffset,inpart,byan increaseinstorm-relatedrepaircosts,anincreasein electrictransmissioninvestments,andexpendituresfora thirdenergycenterscrubberprojectin2011.AmerenMissouriscashusedininvestingactivitiesdecreasedby$73millionduring2011,comparedwith2010, principallybecauseofa$74milliondecreaseincapital expendituresanda$9millionpaymentreceivedfromthe DOEin2011underthetermsofthesettlementwiththeDOE relatedtonuclearwastedisposal.Thesecashbenefitswere reducedbya$6millionnetdecreaseinnuclear decommissioningtrustfundactivities.Capitalexpenditures werelowerin2011asaresultofthecompletionin2010of twoscrubbersatAmerenMissourisSiouxenergycenterand boilerprojects,whichoffseta$28millionincreaseincapital expendituresrelatedtostorm-relatedrepaircosts.AmerenIllinoiscashusedininvestingactivitiesincreasedby$49millionduring2011,comparedwith2010.
Therewasa$70millionincreaseincapitalexpenditures primarilyasaresultofincreasedinvestmentinelectric transmissionassetsanda$17millionincreaseincapital expendituresrelatedtostorm-relatedrepaircosts.In2011, cashflowsfrominvestingactivitiesbenefitedfromtherepaymentsofadvancespreviouslypaidtoATXI,asaresultofthecompletionofaprojectunderajointownershipagreement.In2010,cashflowsfrominvestingactivitiesbenefitedfromtheproceedsreceivedonanintercompany notereceivable,offset,inpart,byadvancestoATXI.Gencoscashusedininvestingactivitiesincreasedby$112millionduring2011,comparedwith2010.Netcashusedforcapitalexpendituresincreasedby$46million primarilyasaresultofincreasedspendingforenergycenter scrubberprojectsandboilerprojects.TheCoffeenenergycenterscrubberprojectwascompletedinFebruary2010,andconstructionbeganinApril2011onGencosNewtonenergycenterscrubberproject.In2011,cashflowsfrominvestingactivitiesbenefitedfromtheproceedsofpropertysales, principallyattributedto$45millionofproceedsreceivedfrom thesaleofGencosremaininginterestinitsColumbiaCT facility.In2010,cashflowsfrominvestingactivitiesbenefited fromtheproceedsreceivedfromthesaleof25%ofGencos ColumbiaCTfacility.During2011,cashprovidedbysalesof propertiesenabledGencotocontributenetnon-state-regulatedsubsidiariesmoneypooladvancesof$49million.
During2010,Gencoreceived$48millioninnetrepaymentof non-state-regulatedsubsidiariesmoneypooladvances.2010versus2009Amerenscashusedininvestingactivitiesdecreasedby$685millionduring2010,comparedwith2009.There wasa$668milliondecreaseincapitalexpendituresas comparedwith2009asaresultofreductionsinplanned capitalexpendituresforthedistributionsystemandenergy centerimprovementsduring2010,a$109millionreduction incapitalexpenditurestorepairseverestormdamage,and thecompletionofenergycenterscrubberprojectsinthe MerchantGenerationsegmentduring2009andearly2010.
Cashflowsfrominvestingactivitiesin2010alsobenefited fromthesaleof25%ofGencosColumbiaCTfacilityand otherproperties.AmerenMissouriscashusedininvestingactivitiesdecreasedby$257millionduring2010,comparedwith 2009.Therewasa$258milliondecreaseincapital expendituresascomparedwith2009asaresultof reductionsinplannedcapitalexpendituresforthe distributionsystemandenergycenterimprovementsduring 2010,aswellasa$74millionreductionincapital expenditurestorepairseverestormdamage.Thiscash benefitwasreducedbya$12millionnetdecreasein nucleardecommissioningtrustfundactivities.AmerenIllinoiscashusedininvestingactivitiesdecreasedby$195millionduring2010,comparedwith 2009.Therewasa$71milliondecreaseincapital expenditurescomparedwith2009becauseAmerenIllinois reducedplannedcapitalexpendituresforthedistribution systemduring2010afterreceivingsignificantlylessthanit requestedinarateproceeding,aswellasa$35million reductionincapitalexpenditurestorepairseverestorm damage.Similarplannedcapitalexpenditurereductionsat AERGresultedinthe$85milliondecreaseincapital expendituresofdiscontinuedoperations.Additionally, AmerenIllinoisadvancestoATXIforconstructionundera jointownershipagreementdecreasedduring2010asthe projectapproachedcompletion.AmerenIllinoisreceived fundingforthisconstructionunderagenerator interconnectionagreementrelatedtoongoingtransmission upgradeprojects.Gencoscashusedininvestingactivitiesdecreasedby$360millionduring2010,comparedwith2009.Reductions inplannedcapitalexpenditures,aswellascompletionof energycenterscrubberprojectsduring2009,resultedina
$221milliondecreaseincapitalexpenditurescompared with2009.Cashflowsfrominvestingactivitiesin2010also 57 benefitedfromthe$18millionofproceedsGencoreceivedfromthesaleof25%ofitsColumbiaCTfacilityandnet repaymentofnon-state-regulatedsubsidiariesmoneypool
advances.CapitalExpendituresThefollowingtablepresentsthecapitalexpendituresbytheAmerenCompaniesfortheyearsended December31,2011,2010,and2009:CapitalExpenditures201120102009 Ameren (a)......................$1,030$1,042$1,710AmerenMissouri
................
550624882AmerenIllinois
..................
351281352MerchantGeneration-Genco
.......14195316MerchantGeneration-Other
........12692(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandtheeliminationofintercompanytransfers.Amerens2011capitalexpendituresprincipallyconsistedofthefollowingexpendituresatitssubsidiaries.
AmerenMissourispent$24milliononbuildingitsMaryland Heightsenergycenterand$31millionforstorm-related repaircosts.AmerenIllinoisincurredstorm-relatedrepair costsof$20million.Gencospent$75milliontoward scrubbersatitsNewtonandCoffeenenergycentersfor compliancewithenvironmentalregulations.Othercapital expendituresweremadeprincipallytomaintain,upgrade, andexpandthereliabilityofthetransmissionand distributionsystemsofAmerenMissouriandAmeren Illinois,aswellastofundvariousenergycenterupgrades.Amerens2010capitalexpendituresprincipallyconsistedofthefollowingexpendituresatitssubsidiaries.
AmerenMissourispent$130milliontowardtwoscrubbers atitsSiouxenergycenter,whichwerecompletedin2010.
AtGenco,therewasacashoutlayof$29millionforenergy centerscrubberprojects.Thescrubbersarenecessaryto complywithenvironmentalregulations.Othercapital expendituresweremadeprincipallytomaintain,upgrade, andexpandthereliabilityofthetransmissionand distributionsystemsofAmerenMissouriandAmeren Illinois,aswellastofundvariousenergycenterupgrades.Amerens2009capitalexpendituresconsistedprincipallyofthefollowingexpendituresatitssubsidiaries.
AmerenMissourispent$173milliontowardtwoscrubbers atitsSiouxenergycenter,$93milliontowardtheTaum Saukrebuild,anditincurredstorm-relatedexpendituresof
$78million.AmerenIllinoisincurredstorm-relatedrepair costsof$38million.AtGenco,therewasacashoutlayof
$169millionforenergycenterscrubberprojects.The scrubbersarenecessarytocomplywithenvironmental regulations.Othercapitalexpendituresweremade principallytomaintain,upgrade,andexpandthereliability ofthetransmissionanddistributionsystemsofAmeren MissouriandAmerenIllinoisaswellasvariousenergy centerupgrades.ThefollowingtableestimatesthecapitalexpendituresthatwillbeincurredbytheAmerenCompaniesfrom2012 through2016,includingconstructionexpenditures, capitalizedinterestfortheMerchantGenerationbusiness, allowanceforfundsusedduringconstructionforourrate-regulatedutilitybusinesses,andestimatedexpendituresfor compliancewithknownandexistingenvironmental regulations.Asaresultofasharpdeclineinforwardpower pricesinearly2012,aswellasuncertainenvironmental regulations,Gencoisdeceleratingtheconstructionoftwo scrubbersatitsNewtonenergycenter,andAERGhas removedthepreviouslyplannedprecipitatorupgradesatits E.D.Edwardsenergycenterfromthefive-yearcapital expendituresforecast.Gencowillcontinuetoincursome ongoingcapitalcostsrelatedtotheconstructionofthe Newtonscrubbers.ThetablebelowincludesGencos estimatedcapitalexpendituresofapproximately
$150millionin2012andapproximately$20million annuallyfrom2013through2016fortheinstallationofthe twoscrubbers,excludingcapitalizedinterest.SeeOutlook andalsoNote15-CommitmentsandContingenciesunder PartII,Item8,ofthisreportforfurtherdiscussionofthe impactofdecliningpowerpricesontheMerchant Generationsegment.20122013-2016TotalAmerenMissouri............$665$2,190-$2,960$2,855-$3,625AmerenIllinois.............5352,020-2,7302,555-3,265MerchantGeneration-Genco...175165-220340-395 MerchantGeneration-Other...535-5040-55
ATX/ATXI..................25625-845650-870 Other (a)...................(10)45-6535-55 Ameren...................$1,395$5,080-$6,870$6,475-$8,265(a)Includestheeliminationsofintercompanytransfers.AmerenMissourisestimatedcapitalexpendituresincludetransmission,distribution,andgeneration-related investments,aswellasexpendituresforcompliancewith environmentalregulationsdiscussedbelow.AmerenIllinois estimatedcapitalexpendituresareprimarilyforelectricand naturalgastransmissionanddistribution-related investments,andexpectedcapitalexpendituresincremental tohistoricalaverageelectricdeliverycapitalexpendituresto modernizeitsdistributionsystempursuanttotheIEIMA.
ForadditionalinformationontheIEIMA,seeNote2-Rate andRegulatoryMattersunderPartII,Item8,ofthisreport.
Gencosestimatedcapitalexpendituresareprimarilyfor compliancewithenvironmentalregulationsandupgradesto existingcoalandnaturalgas-firedenergycentersdiscussed below.EstimatedcapitalexpendituresofAmeren nonregistrantsubsidiariesconsistprimarilyofAERGs estimatedexpendituresforcompliancewithenvironmental regulationsdiscussedbelowandATX/ATXIsestimated transmissionexpenditures.Wecontinuallyreviewourgenerationportfolioandexpectedpowerneeds.Asaresult,wecouldmodifyour planforgenerationcapacity,whichcouldincludechanging thetimeswhencertainassetswillbeaddedtoorremoved fromourportfolio,thetypeofgenerationassettechnology thatwillbeemployed,andwhethercapacityorpowermay 58 bepurchased,amongotherthings.Additionally,wecontinuallyreviewthereliabilityofourtransmissionand distributionsystems,expectedcapacityneeds,and opportunitiesfortransmissioninvestments.Thetimingand amountofinvestmentcouldvaryduetochangesin expectedcapacity,theconditionoftransmissionand distributionsystems,andtheabilityandwillingnessto pursuetransmissioninvestments,amongotherthings.Any changesthatwemayplantomakeforfuturegeneration, transmissionordistributionneedscouldresultinsignificant capitalexpendituresorlossesbeingincurred,whichcould bematerial.EnvironmentalCapitalExpendituresAmeren,AmerenMissouriandGencowillincursignificantcostsinfutureyearstocomplywithexistingand knownfederalandstateregulationsregardingSO 2,NO x ,andmercuryemissionsfromcoal-firedpowerplants.SeeNote15-CommitmentsandContingenciesunderPartII,Item8,ofthisreportforadiscussionofexisting environmentallawsandregulationsthataffect,ormay affect,ourfacilitiesandcapitalcoststocomplywithsuch lawsandregulations,aswellasourassessmentofthepotentialimpactsoftheEPAsproposedregulationofCCRandcoolingwaterintakestructures,theMATS,thestayed CSAPR,andtherevisednationalambientairquality standardsforSO 2andNO xemissionsasofDecember31, 2011.CashFlowsfromFinancingActivities2011versus2010During2011,wereducedourrelianceonborrowingsfromshort-termdebtandcreditfacilities,andwereduced long-termdebtoutstandingwhilemaintainingadequate cashbalancesforworkingcapitalneeds.Amerenscashusedinfinancingactivitiesincreasedin2011,comparedwith2010.During2011,Amerenscash flowfromoperatingactivitiesof$1.9billionexceededits capitalexpendituresof$1.0billionandcommonstock dividendrequirementsof$375million.Amerenusedthis cashaswellascashonhandtorepay$581millionof short-termdebtandcreditfacilityborrowings,toredeem
$155millionoflong-termdebt,andtorepay$73millionof advancespreviouslyreceivedfromgeneratorsdueto projectcompletion.During2010,Amerenredeemed
$310millionoflong-termdebtand$52millionofpreferred
stock.AmerenMissouriscashusedinfinancingactivitiesincreasedby$96millionin2011,comparedwith2010.
During2011,AmerenMissouriscashflowfromoperating activitiesof$1.1billionexceededitscombinedcapitaland nuclearfuelexpendituresof$612million.AmerenMissouri utilizedthiscashtopaycommonstockdividendsof
$403millionandrepay$19millionofadvancespreviously receivedfromgeneratorsduetoprojectcompletion.During 2010,AmerenMissouripaidcommonstockdividendsof$235million;redeemed$70millionoflong-termdebt,includingits7.69%SeriesAsubordinateddebentures;and redeemedalloutstandingsharesofits$7.64Series preferredstock.AmerenIllinoisnetcashusedinfinancingactivitiesincreasedby$179millionin2011comparedwith2010.
AmerenIllinoiscommonstockdividendincreased
$194millioncomparedwith2010.InJune2011,Ameren Illinois6.625%$150millionseniorsecurednotesmaturedandwererepaidandretiredusingavailablecashonhand.During2010,inconnectionwiththeAmerenIllinoisMerger, AmerenIllinois(formerlyCILCO)redeemedallofits preferredstockandall$40millionofits7.61%Series 1997-2firstmortgagebonds(formerlyCIPS).Net repaymentsofgeneratoradvancesreceivedforconstruction increased$25millionin2011comparedwith2010.Gencosnetcashusedinfinancingactivitiesdecreasedby$203millionin2011comparedwith2010.During2011, Gencoscashflowfromoperatingactivitiesof$215million exceededitscapitalexpendituresof$141million.
Additionally,Gencoreceivedacapitalcontributionfrom Amerenassociatedwithataxallocationagreementthat benefited2011cashflowsfromfinancingactivities.Genco usedthiscashtoreduceitsrelianceoncreditfacility borrowings.In2010,Gencorepaidatmaturity$200million ofits8.35%seniornotesatmaturityandrepaidanet
$176millionofintercompanynoteborrowings.These2010 cashoutlayswereoffset,inpart,bycreditfacility
borrowings.2010versus2009During2010,wereplacedandextendedtheexpirationofourcreditfacilities.Wesoughttoreduceourrelianceon borrowingsfromourcreditfacilitiesandtoreducelong-termdebtoutstandingwhilemaintainingadequatecash balancesforworkingcapitalneeds.Amerenhadan$804millionnetuseofcashfromfinancingactivitiesin2010,comparedwitha$344million netsourceofcashin2009.During2010,Amerenscash flowfromoperatingactivitiesof$1.8billionexceededits capitalexpendituresof$1.0billionandcommonstock dividendrequirementsof$368million.Amerenusedthis cashtoredeem$310millionoflong-termdebtand
$52millionofpreferredstockin2010.During2009, Amerenissued$1billionofseniordebtand$634millionin commonstock.Itusedtheproceedstorepurchase, redeem,andfundmaturitiesof$631millionoflong-term debt,toreduceshort-termborrowings,andtofundcapital expendituresandotherworkingcapitalneedsatAmeren Missouri,AmerenIllinois,andGenco.AmerenMissourihada$334millionnetuseofcashfromfinancingactivitiesin2010,comparedwitha
$249millionnetsourceofcashin2009.Planned reductionsofexpendituresallowedAmerenMissouritouse cashfromoperationsandcreditfacilityborrowingstofund itscapitalexpendituresandworkingcapitalneedswithout issuingadditionalseniordebtorcapitalcontributionsfrom 59 Ameren.Additionally,during2010,theseeffortsallowedAmerenMissouritoredeem$70millionoflong-termdebt, includingits7.69%SeriesAsubordinateddebentures;to redeemalloutstandingsharesofits$7.64Seriespreferred stock;toincreasecommonstockdividendsby$60million; andtoreduceshort-termandintercompanyborrowing repaymentsby$343million,comparedwith2009.AmerenIllinoisnetcashusedinfinancingactivitiesincreasedby$183millionin2010comparedwith2009.
Reductionofplannedexpendituresallowedittousecash fromoperationstofunditscapitalexpendituresand workingcapitalneedswithouttheissuanceofadditional seniordebtorcapitalcontributionsfromAmeren.
Additionally,AmerenIllinoiscommonstockdividends increased$35millioncomparedwith2009,andCILCO redeemedallofitspreferredstockinconnectionwiththe AmerenIllinoisMerger.During2009,Amerenmadecapital contributionstoAmerenIllinoisof$272millionandAmeren Illinoisrepaid$250millionoflong-termdebtand
$62millionofshort-termborrowingbalances.Gencohada$275millionnetuseofcashfromfinancingactivitiesin2010,comparedwitha$139millionnetsourceofcashin2009,primarilyasaresultofreductionsofplannedexpenditures.Theseeffortsallowed Gencotousecashfromoperationsandcreditfacility borrowingstofundcapitalexpenditures,tomeetworking capitalneeds,torepayits$200millionof8.35%senior notesatmaturity,andtorepayanet$176millionof intercompanynoteborrowingsin2010.During2009, Gencoissued$249millionoflong-termdebtandusedthe proceedstorepayshort-termborrowingsandtofund generalcorporatepurposes.CreditFacilityBorrowingsandLiquidityTheliquidityneedsoftheAmerenCompaniesaretypicallysupportedthroughtheuseofavailablecash,short-termintercompanyborrowings,drawingsundercommitted bankcreditfacilities,orcommercialpaperissuances.See Note4-Short-TermDebtandLiquidityunderPartII, Item8,ofthisreportforadditionalinformationoncredit facilities,short-termborrowingactivity,commercialpaper activity,relevantinterestrates,andborrowingsunder Amerensutilityandnon-state-regulatedsubsidiarymoney poolarrangements.
60 Thefollowingtablepresentsthecommitted2010CreditAgreementsofAmerenandtheAmerenCompanies,andthecreditcapacityavailableundersuchagreements,consideringreductionsforcommercialpaperborrowingsandlettersofcredit, asofDecember31,2011:ExpirationBorrowingCapacityCreditAvailableAmerenandAmerenMissouri:2010MissouriCreditAgreement (a)........................................September2013$800$800AmerenandGenco:2010GencoCreditAgreement (a).........................................September2013500500AmerenandAmerenIllinois:2010IllinoisCreditAgreement (a).........................................September2013800800 Ameren: Less:
Commercialpaperoutstanding
..........................................
(148)Lettersofcredit
......................................................
(15)Total$2,100$1,937(a)TheAmerenCompaniesmayaccessthesecreditfacilitiesthroughintercompanyborrowingarrangements.InFebruary2011,AmerenIllinoisreceivedapprovalfromtheICCtoextendtheexpirationofitsborrowing sublimitunderthe2010IllinoisCreditAgreementto September10,2013.InJune2011,AmerenMissouri receivedapprovalfromtheMoPSCtoextendtheexpiration ofitsborrowingsublimitunderthe2010MissouriCredit AgreementtoSeptember10,2013.The2010CreditAgreementsareusedtomakecashborrowings,toissuelettersofcredit,andtosupport borrowingsunderAmerens$500millioncommercialpaper program,AmerenMissouris$500millioncommercialpaper program,andAmerenIllinois$500millioncommercialpaper program,thelatterofwhichwascreatedinOctober2011.Anyofthe2010CreditAgreementsareavailabletoAmerentosupportborrowingsunderAmerenscommercialpaper program,subjecttoborrowingsublimits.The2010Missouri CreditAgreementisavailabletosupportborrowingsunder AmerenMissouriscommercialpaperprogram,andthe2010 IllinoisCreditAgreementisavailabletosupportborrowings underAmerenIllinoiscommercialpaperprogram.Themaximumaggregateamountavailabletoeachborrowerundereachfacilityisshowninthefollowingtable (suchamountbeingsuchborrowersBorrowing
Sublimit):
2010 Missouri Credit Agreement 2010 Genco Credit Agreement 2010 Illinois Credit Agreement Ameren.............$500$500$300AmerenMissouri......500(a)(a)AmerenIllinois........(a)(a)800 Genco..............(a)500(a)(a)Notapplicable.Thesecreditagreementswerealsoavailableforuse,subjecttoapplicableregulatoryshort-termborrowing authorizations,byEEIorbyotherAmerennon-state-regulatedsubsidiariesthroughdirectshort-termborrowings fromAmerenandbymostofAmerensnon-rate-regulated subsidiaries,including,butnotlimitedto,AmerenServices, AER,AERGandMarketingCompany,throughanon-state-regulatedsubsidiarymoneypoolagreement.Amerenhasmoneypoolagreementswithandamongitssubsidiariestocoordinateandtoprovideforcertainshort-termcashand workingcapitalrequirements.Separatemoneypoolsare maintainedforutilityandnon-state-regulatedentities.In addition,aunilateralborrowingagreementamongAmeren, AmerenIllinois,andAmerenServicesenablesAmeren Illinoistomakeshort-termborrowingsdirectlyfrom Ameren.Pursuanttothetermsoftheunilateralborrowing agreement,theaggregateamountofborrowings outstandingatanytimebyAmerenIllinoisunderthe unilateralborrowingagreementandtheutilitymoneypool agreement,togetherwithanyoutstandingAmerenIllinois externalcreditfacilityborrowingsorcommercialpaper issuances,maynotexceed$500million,pursuantto authorizationfromtheICC.AmerenIllinoisdidnotborrow undertheunilateralborrowingagreementduring2011or 2010.AmerenServicesisresponsibleforoperationand administrationofthemoneypoolagreements.SeeNote4-Short-TermDebtandLiquidityunderPartII,Item8,ofthis reportforadetailedexplanationofthemoneypool arrangementsandtheunilateralborrowingagreement.Theissuanceofshort-termdebtsecuritiesbyAmerensutilitysubsidiariesissubjecttoapprovalbyFERC undertheFederalPowerAct.InMarch2010,FERCissued anorderauthorizingtheissuanceofupto$1billionof short-termdebtsecuritiesforAmerenMissouri.The authorizationwaseffectiveasofApril1,2010,and terminatesonMarch31,2012.OnOctober1,2010,FERC authorizedAmerenIllinoistoissueupto$1billionofshort-termdebtsecurities.Theauthorizationbecameeffective immediatelyandterminatesonSeptember30,2012.Gencohasunlimitedlongandshort-termdebtissuanceauthorizationfromFERC.EEIhasunlimitedshort-termdebtauthorizationfromFERC.Theissuanceofshort-termdebtsecuritiesbyAmerenisnotsubjecttoapprovalbyanyregulatorybody.TheAmerenCompaniescontinuallyevaluatetheadequacyandappropriatenessoftheirliquidity arrangementsgivenchangingbusinessconditions.When businessconditionswarrant,changesmaybemadeto existingcreditfacilitiesortoothershort-termborrowing
arrangements.
61 Long-termDebtandEquityThefollowingtablepresentstheissuancesofcommonstockandtheissuances,redemptions,repurchases,andmaturitiesoflong-termdebtandpreferredstock(netofanyissuancediscountsandincludinganyredemptionpremiums)for theyears2011,2010,and2009fortheAmerenCompanies.Foradditionalinformationrelatedtothetermsandusesofthese issuancesandthesourcesoffundsandtermsfortheredemptions,seeNote5-Long-termDebtandEquityFinancingsunder PartII,Item8,ofthisreport.MonthIssued,Redeemed,RepurchasedorMatured201120102009 IssuancesLong-termdebt
Ameren:8.875%Seniorunsecurednotesdue2014........................May
$-$-$423AmerenMissouri:8.45%Seniorsecurednotesdue2039
...........................
March--349 Genco:6.30%Seniorunsecurednotesdue2020
.........................
November--249TotalAmerenlong-termdebtissuances
.............................
$-$-$1,021Commonstock Ameren:21,850,000sharesat$25.25
.................................
September$-$-$552DRPlusand401(k)
........................................
Various 658082Totalcommonstockissuances
...................................$65$80$634TotalAmerenlong-termdebtandcommonstockissuances
.............$65$80$1,655Redemptions,RepurchasesandMaturitiesLong-termdebt
Ameren:8.70%Seniorunsecurednotesdue2009(formerlyCILCORP)
.........October$-$-$1249.375%Seniorbondsdue2029(formerlyCILCORP)
................
December--253AmerenMissouri:CityofBowlingGreencapitallease(PenoCreekCT)
.................
Various 5 447.69%SeriesAsubordinateddeferrableinterestdebenturesdue2036...September AmerenIllinois:6.625%Seniorsecurednotesdue2011
..........................
June 150--7.50%Seriesmortgagebondsdue2009
..........................
June--2507.61%Series1997-2firstmortgagebondsdue2017
................
September-40-Genco:SeniornotesSeriesD8.35%due2010
.........................
November-200-TotalAmerenlong-termdebtredemptions,repurchasesandmaturities
....$155$310$631PreferredstockAmerenMissouri:$7.64Series
................................................
August$-$33$-AmerenIllinois:4.50%Series
...............................................
August-11-4.64%Series
...............................................
August-8-4.08%Series (a).............................................
September-7-4.20%Series (a).............................................
September-5-4.26%Series (a).............................................
September-4-4.42%Series (a).............................................
September-3-4.70%Series (a).............................................
September-5-7.75%Series (a).............................................
September-9-TotalAmerenpreferredstockredemptionsandrepurchases
.............
$-$85$-TotalAmerenlong-termdebtandpreferredstockredemptions,repurchasesandmaturities
..............................................$155$395$631(a)InSeptember2010,AmerencontributedtothecapitalofAmerenIllinois(formerlyIP),withoutthepaymentofanyconsideration,alloftheIPpreferredstockownedbyAmeren($33million).IPcancelledthesepreferredshares.
62 AFormS-3registrationstatementfiledbyAmerenwiththeSECinJune2011authorizedtheofferingof6million additionalsharesofitscommonstockunderDRPlus.
SharesofcommonstocksoldunderDRPlusare,at Amerensoption,newlyissuedshares,treasuryshares,or sharespurchasedintheopenmarketorinprivately negotiatedtransactions.In2012,Amerenplansforshares tobepurchasedintheopenmarketforDRPlusandits 401(k)plan.UnderDRPlusandits401(k)plan,Ameren issued2.2million,3.0million,and3.2millionsharesof commonstockin2011,2010,and2009,respectively, whichwerevaluedat$65million,$80million,and
$82millionfortherespectiveyears.InSeptember2009,Amerenissuedandsold21.85millionsharesofitscommonstockat$25.25per share,forproceedsof$535million,netof$17millionof issuancecosts.Amerenusedtheofferingproceedstomake investmentsinitsrate-regulatedutilitysubsidiariesinthe formofcapitalcontributionstoAmerenMissouriandAmeren Illinoisof$436millionand$99million,respectively.TheAmerenCompaniesmaysellsecuritiesregisteredundertheireffectiveregistrationstatementsifmarket conditionsandcapitalrequirementswarrantsuchsales.
Anyofferandsalewillbemadeonlybymeansofa prospectusthatmeetstherequirementsoftheSecurities Actof1933andtherulesandregulationsthereunder.IndebtednessProvisionsandOtherCovenantsSeeNote4-Short-TermDebtandLiquidityandNote5-Long-termDebtandEquityFinancingsunderPartII, Item8,ofthisreportforadiscussionofcovenantsand provisions(andapplicablecross-defaultprovisions) containedinourbankcreditandtermloanagreementsand incertainoftheAmerenCompaniesindenturesandarticles ofincorporation.AtDecember31,2011,theAmerenCompanieswereincompliancewiththeprovisionsandcovenantscontained withintheircreditagreements,indentures,andarticlesof incorporationprovisionsandcovenants.Weconsideraccesstoshort-termandlong-termcapitalmarketsasignificantsourceoffundingforcapital requirementsnotsatisfiedbyouroperatingcashflows.
Inabilitytoraisecapitalonreasonableterms,particularly duringtimesofuncertaintyinthecapitalmarkets,could negativelyaffectourabilitytomaintainandexpandour businesses.Afterassessingourcurrentoperating performance,liquidity,andcreditratings(seeCredit Ratingsbelow),webelievethatAmerenanditsrate-regulatedbusinesseswillcontinuetohaveaccesstothe capitalmarkets.However,eventsbeyondourcontrolmay createuncertaintyinthecapitalmarketsormakeaccessto thecapitalmarketsuncertainorlimited.Sucheventscould increaseourcostofcapitalandadverselyaffectourability toaccessthecapitalmarkets.Gencosoperatingresultsandoperatingcashflowsaresignificantlyaffectedbychangesinmarketpricesforpower, whichhavesignificantlydecreasedoverthepastfewyears.
UndertheprovisionsofGencosindenturedescribedin Note5-Long-termDebtandEquityFinancings,inPartII, Item8ofthisreport,Gencomaynotborrowadditional fundsfromexternal,third-partysourcesifitsinterest coverageratioislessthanaspecifiedminimumorits leverageratioisgreaterthanaspecifiedmaximum.Based onprojectionsasofDecember31,2011,ofGencos operatingresultsandcashflows,weexpectthat,bytheend ofthefirstquarterof2013,Gencosinterestcoverageratio willbelessthantheminimumratiorequiredforthe companytoborrowadditionalfundsfromexternal,third-partysources.
DividendsAmerenpaidtoitsshareholderscommonstockdividendstotaling$375million,or$1.555pershare,in 2011,$368million,or$1.54pershare,in2010,and
$338million,or$1.54pershare,in2009.Thepayoutrate basedonnetincomein2011and2009was72%and55%,
respectively.Thepayoutofcommonstockdividends exceedednetincomein2010becauseofthenoncash goodwill,impairmentandotherchargesrecordedduring 2010.Dividendspaidtocommonshareholdersinrelationto netcashprovidedbyoperatingactivitiesforthesame periodswere20%in2011,20%in2010,and17%in2009.TheamountandtimingofdividendspayableonAmerenscommonstockarewithinthesolediscretionof Amerensboardofdirectors.Theboardofdirectorshasnot setspecifictargetsorpayoutparameterswhendeclaring commonstockdividends.However,asithasdoneinthe past,theboardofdirectorsisexpectedtoconsidervarious issues,includingAmerensoverallpayoutratio,payout ratiosofourpeers,projectedcashflowandpotentialfuture cashflowrequirements,historicalearningsandcashflow, projectedearnings,impactsofregulatoryordersor legislation,andotherkeybusinessconsiderations.On February10,2012,theboardofdirectorsofAmeren declaredaquarterlydividendonAmerenscommonstock of40centspershare,payableonMarch30,2012,tostockholdersofrecordonMarch14,2012.Certainofourfinancialagreementsandcorporateorganizationaldocumentscontaincovenantsandconditions that,amongotherthings,restricttheAmerenCompanies paymentofdividendsincertaincircumstances.AmerenIllinoisarticlesofincorporationrequireitsdividendpaymentsoncommonstocktobebasedonratiosofcommonstocktototalcapitalizationandotherprovisions relatedtocertainoperatingexpensesandaccumulationsof earnedsurplus.Gencosindentureincludesrestrictionsthatprohibititfrommakingdividendpaymentsonitscommonstock.
Specifically,Gencocannotpaydividendsonitscommon stockunlessthecompanysactualinterestcoverageratio forthemostrecentlyendedfourfiscalquartersandthe 63 interestcoverageratiosprojectedbymanagementforeachofthesubsequentfoursix-monthperiodsaregreaterthana specifiedminimumlevel.Basedonprojectionsasof December31,2011,ofGencosoperatingresultsandcash flowsin2012and2013,wedidnotbelievethatGencowill achievetheminimuminterestcoveragerationecessaryto paydividendsonitscommonstockforthesixmonths endedJune30,2013,orthesixmonthsended December31,2013.Asaresult,Gencowasrestrictedfrom payingdividendsonitscommonstockasofDecember31, 2011,andweexpectGencowillbeunabletopaydividends onitscommonstockin2012,2013,and2014.See Note5-Long-termDebtandEquityFinancingsunder PartII,Item8,ofthisreportforadditionalinformationon Gencosindentureprovisions.AmerenMissouri,AmerenIllinoisandGencoaswellascertainothernonregistrantAmerensubsidiariesaresubject toSection305(a)oftheFederalPowerAct,whichmakesit unlawfulforanyofficerordirectorofapublicutility,as definedintheFederalPowerAct,toparticipateinthe makingorpayingofanydividendfromanyfundsproperly includedincapitalaccount.ThemeaningofthislimitationhasneverbeenclarifiedundertheFederalPowerActorFERCregulations.However,FERChasconsistently interpretedtheprovisiontoallowdividendstobepaidas longas(1)thesourceofthedividendsisclearlydisclosed, (2)thedividendsarenotexcessive,and(3)thereisnoself-dealingonthepartofcorporateofficials.Ataminimum, Amerenbelievesthatdividendscanbepaidbyits subsidiariesthatarepublicutilitiesfromnetincomeand retainedearnings.Inaddition,underIllinoislaw,Ameren Illinoismaynotpayanydividendonitsstockunless, amongotherthings,itsearningsandearnedsurplusare sufficienttodeclareandpayadividendafterprovisionis madeforreasonableandproperreserves,orunlessAmeren IllinoishasspecificauthorizationfromtheICC.InitsapplicationfortheFERCordersapprovingtheAmerenIllinoisMergerandtheAERGdistribution,Ameren committeditselftomaintainaminimumof30%equityinits capitalstructureatAmerenIllinoisfollowingtheAmeren IllinoisMergerandtheAERGdistribution.AtDecember31,2011,Ameren,AmerenMissouriandAmerenIllinoiswerenotrestrictedfrompayingdividends.ThefollowingtablepresentscommonstockdividendspaidbyAmerenCorporationtoitscommonstockholdersandbyAmerensregistrantsubsidiariestotheirrespectiveparents.201120102009AmerenMissouri
...........................................................................$403$235$175AmerenIllinois
............................................................................
32713398 Genco...................................................................................
--43DividendspaidbyAmeren
...................................................................
375368338CertainoftheAmerenCompanieshaveissuedpreferredstock,whichprovidesforcumulativepreferred stockdividends.Eachcompanysboardofdirectors considersthedeclarationofthepreferredstockdividendsto shareholdersofrecordonacertaindate,statingthedateonwhichthedividendispayableandtheamounttobepaid.SeeNote5-Long-termDebtandEquityFinancingsunder PartII,Item8,ofthisreportforfurtherdetailconcerning thepreferredstockissuances.
64 ContractualObligationsThefollowingtablepresentsourcontractualobligationsasofDecember31,2011.SeeNote11-RetirementBenefitsunderPartII,Item8,ofthisreportforinformationregardingexpectedminimumfundinglevelsforourpensionplans.These expectedpensionfundingamountsarenotincludedinthetablebelow.Inaddition,routineshort-termpurchaseorder commitmentsarenotincluded.
TotalLessthan1Year1-3Years3-5YearsAfter5 Years Ameren: (a)Long-termdebtandcapitalleaseobligations (b)(c)......................$6,866$179$940$515$5,232Short-termdebt...............................................148148---Interestpayments (d)............................................4,3384468267152,351Operatingleases (e)..............................................307385851160Otherobligations (f).............................................9,1141,9722,7271,9292,486Totalcashcontractualobligations..................................$20,773$2,783$4,551$3,210$10,229AmerenMissouri:Long-termdebtandcapitalleaseobligations (c)........................$3,955$178$314$386$3,077Interestpayments (d)............................................2,6032294313931,550Operatingleases (e)..............................................13413242473Otherobligations (f).............................................5,6348201,5881,5841,642Totalcashcontractualobligations..................................$12,326$1,240$2,357$2,387$6,342AmerenIllinois:Long-termdebt (b)(c).............................................$1,661$1$201$129$1,330Interestpayments (d)............................................935120225204386Operatingleases (e)..............................................71222Otherobligations (f).............................................2,424525863238798Totalcashcontractualobligations..................................$5,027$647$1,291$573$2,516 Genco:Long-termdebt (c)..............................................$825$-$-$-$825Interestpayments..............................................71059118118415Operatingleases (e)..............................................13111222177Otherobligations (f).............................................67446216547-Totalcashcontractualobligations..................................$2,340$532$305$186$1,317(a)IncludesamountsforregistrantandnonregistrantAmerensubsidiariesandintercompanyeliminations.(b)Excludesfair-marketvalueadjustmentsoflong-termdebtof$5millionforAmerenIllinois.
(c)Excludesunamortizeddiscountandpremiumof$15millionatAmeren,$5millionatAmerenMissouri,$8millionatAmerenIllinois,and$1millionatGenco.(d)Theweighted-averagevariable-ratedebthasbeencalculatedusingtheinterestrateasofDecember31,2011.
(e)Amountsrelatedtocertainrealestateleasesandrailroadlicenseshaveindefinitepaymentperiods.Amerens$2millionannualobligationfortheseitemsisincludedintheLessthan1Year,1-3Years,an d3-5Yearscolumns.TheamountsfortheindefinitepaymentsarenotincludedintheAfter5Yearscolumnbecausethatperiodisindefinite.(f)SeeOtherObligationswithinNote15-CommitmentsandContingenciesunderPartII,Item8ofthisreport,fordiscussionofitemsincluded herein.AsofDecember31,2011,theamountsofunrecognizedtaxbenefitsundertheauthoritative accountingguidanceforuncertaintaxpositionswere
$148million,$124million,$11million,and$9millionfor Ameren,AmerenMissouri,AmerenIllinois,andGenco, respectively.Itisreasonablypossibletoexpectthatthe settlementofanunrecognizedtaxbenefitwillresultinan underpaymentoroverpaymentoftaxandrelatedinterest.
However,thereisahighdegreeofuncertaintywithrespect tothetimingofcashpaymentsorreceiptsassociatedwith unrecognizedtaxbenefits.Theamountandtimingofcertain paymentsorreceiptsisnotreliablyestimableor determinableatthistime.SeeNote13-IncomeTaxesunderPartII,Item8,ofthisreportforinformationregardingtheAmerenCompaniesunrecognizedtax benefitsandrelatedliabilitiesforinterestexpense.Off-Balance-SheetArrangementsAtDecember31,2011,noneoftheAmerenCompanieshadoff-balance-sheetfinancingarrangementsotherthan operatingleasesenteredintointheordinarycourseof business.NoneoftheAmerenCompaniesexpecttoengage inanysignificantoff-balance-sheetfinancingarrangements inthenearfuture.
65 CreditRatingsThecreditratingsoftheAmerenCompaniesaffectourliquidity,ouraccesstothecapitalmarketsandcredit markets,ourcostofborrowingunderourcreditfacilities andcollateralpostingrequirementsundercommodity
contracts.ThefollowingtablepresentstheprincipalcreditratingsoftheAmerenCompaniesbyMoodys,S&P,andFitch effectiveonthedateofthisreport:MoodysS&PFitch Ameren:Issuer/corporatecreditrating..Baa3BBB-BBB Seniorunsecureddebt
.......Baa3BB+BBBCommercialpaper...........P-3A-3F2AmerenMissouri:Issuer/corporatecreditrating..Baa2BBB-BBB+
Secureddebt...............A3BBB+AAmerenIllinois:Issuer/corporatecreditrating..Baa3BBB-BBB-Secureddebt
...............Baa1BBB/BBB+(a)BBB+Seniorunsecureddebt
.......Baa3BBB-BBB Genco:Issuer/corporatecreditrating..-BBBB-Seniorunsecureddebt.......Ba1BBBB-(a)TheBBB+ratingappliestoissuancesofsecuritiessecuredbythemortgageassociatedwiththeformerpropertyofCILCO.TheBBB ratingappliestoissuancesofsecuritiessecuredbythemortgage associatedwiththeformerpropertyofIPandCIPS.Thecostofborrowingunderourcreditfacilitiescanalsoincreaseordecreasedependinguponthecreditratings oftheborrower.Acreditratingisnotarecommendationto buy,sell,orholdsecurities.Itshouldbeevaluated independentlyofanyotherrating.Ratingsaresubjectto revisionorwithdrawalatanytimebytherating
organization.CollateralPostingsAnyadversechangeintheAmerenCompaniescreditratingsmayreduceaccesstocapitalandtriggeradditionalcollateralpostingsandprepayments.Suchchangesmayalsoincreasethecostofborrowingandfuel,power,andnaturalgassupply,amongotherthings,resultingina negativeimpactonearnings.Cashcollateralpostingsand prepaymentsmadewithexternalparties,includingpostings relatedtoexchange-tradedcontractsatDecember31,2011, were$145million,$11million,$102millionand$1million atAmeren,AmerenMissouri,AmerenIllinoisandGenco, respectively.Theamountofcashcollateralexternal counterpartiespostedwithAmerenwas$6millionat December31,2011.Sub-investment-gradeissuerorsenior unsecureddebtratings(lowerthanBBB-orBaa3)at December31,2011,couldhaveresultedinAmeren, AmerenMissouri,AmerenIllinoisorGencobeingrequired topostadditionalcollateralorotherassurancesforcertain tradeobligationsamountingto$332million,$86million,
$125million,and$58million,respectively.Changesincommoditypricescouldtriggeradditionalcollateralpostingsandprepaymentsatcurrentcredit ratings.Ifmarketpriceswere15%higherthan December31,2011,levelsinthenext12monthsand20%
higherthereafterthroughtheendofthetermofthe commoditycontracts,thenAmeren,AmerenMissouri, AmerenIllinoisandGencocouldberequiredtopost additionalcollateralorotherassurancesforcertaintrade obligationsupto$119million,$10million,$-million,and
$19million,respectively.Ifmarketpriceswere15%lower thanDecember31,2011,levelsinthenext12monthsand 20%lowerthereafterthroughtheendofthetermofthe commoditycontracts,thenAmeren,AmerenMissouri, AmerenIllinoisandGencocouldberequiredtopost additionalcollateralorotherassurancesforcertaintrade obligationsupto$227million,$10million,$69million,and
$81million,respectively.
OUTLOOKAmerenseekstoearncompetitivereturnsonitsinvestmentsinitsbusinesses.AmerenMissouriand AmerenIllinoisareseekingtoimprovetheirregulatory frameworksandcostrecoverymechanisms.Atthesame time,Amerensrate-regulatedbusinessesarepursuing constructiveregulatoryoutcomeswithinexisting frameworksandareseekingtoaligntheiroverallspending, bothoperatingandcapital,witheconomicconditionsand cashflowsprovidedbytheirregulators.Consequently, Amerensrate-regulatedbusinessesexpecttonarrowthe historicgapbetweenallowedandearnedreturnsonequity.
AmerensMerchantGenerationsegmentmaintainsafleetof competitivecoal-firedandnaturalgasgeneratingassets.
Amerensmerchantgenerationstrategyistopositionitself asalow-costproviderandtobenefitfromanexpected futurerecoveryofpowerprices.Amerenintendstoallocate itscapitalresourcestothosebusinessopportunities, includingelectricandnaturalgastransmission,thatoffer themostattractiverisk-adjustedreturnpotential.Belowaresomekeytrends,events,anduncertaintiesthatarereasonablylikelytoaffecttheAmerenCompanies financialcondition,resultsofoperations,orliquidityaswell astheirabilitytoachievestrategicandfinancialobjectives for2012andbeyond.Rate-RegulatedOperations Amerensstrategyforearningcompetitivereturnsonitsrate-regulatedinvestmentsinvolvesmeeting customerenergyneedsinanefficientfashion,working toenhanceregulatoryframeworks,makingtimelyand well-supportedratefilings,andaligningoverall spendingwiththoseratecaseoutcomes,economic conditionsandreturnopportunities.
TheIEIMA,enactedlatein2011,providesforaperformance-basedformularatemakingframeworkfor electricdeliveryutilitiesinIllinois.OnJanuary3,2012, AmerenIllinoiselectedtoparticipateinthisregulatory frameworkbymakingitsinitialperformance-based formularatefilingwiththeICC.Webelievethatour 66 participationinthisframeworkwillbetterenableAmerenIllinoistoearnitsallowedreturnonequityfor itselectricdeliveryservicebusiness.Thisisexpectedto giveAmerenIllinoistheearningspredictabilitytoinvest inmodernizingitsdistributionsystem.During2012, AmerenIllinoisisrequiredtomakeaone-time
$7.5millionnonrecoverabledonationtotheIllinois ScienceandEnergyInnovationTrust.Additionally, AmerenIllinoisisrequiredtomakeanannualdonation tothatsametrustandtofundcustomerassistance programs,bothofwhichwilltotalapproximately
$2million,intheaggregate,in2012.
Astheycontinuetoexperiencecostrecoverypressures,AmerenMissouriandAmerenIllinoisexpectto regularlyseekelectricandnaturalgasrateincreases andtimelycostrecoveryandtrackingmechanisms fromtheirregulators.Thesepressuresincludelower loadgrowthfromaweakeconomy,customer conservationefforts,andtheimpactsofenergy efficiencyprograms,increasedinvestmentsand expectedfutureinvestmentsforenvironmental compliance,systemreliabilityimprovements,andnew baseloadcapacity,includingrenewablerequirements.
Increasedinvestmentsalsoresultinhigherdepreciation andfinancingcosts.Increasedcostsarealsoexpected fromrisingemployeebenefitcosts,higherpropertyand incometaxes,andhigherinsurancepremiumsasa resultofinsurancemarketconditionsandloss experience,amongotherthings.Following recommendationsfromtheNRCstaskforceon lessonslearnedfromthe2011reactoraccidentin Japan,theNRCisexpectedtoissueordersin2012 requiringUnitedStatesnuclearplantstoenhance nuclearplantreadinesstosafelymanagesevereevents.
Suchordersareexpectedtoresultinincreasedcostsor
investments.
Amerensrate-regulatedbusinesseshaveprocuredrateincreases.InJanuary2012,theICCissuedanorder thatauthorizeda$32millionincreaseinAmeren Illinoisannualnaturalgasdeliveryservicerevenues.
Thisrequestwasbasedonafuturetestyearof2012, ratherthanahistoricaltestyear,inordertoimprove theabilitytoearnreturnsallowedbyregulators.
In2011,AmerenMissourireceivedseparaterateincreasesforitselectricandnaturalgasbusinesses.In January2011,theMoPSCapprovedastipulationand agreementthatauthorizedanincreaseinannualnatural gasdeliveryrevenuesof$9million.InJuly2011,the MoPSCissuedanorderapprovinganincreasein annualrevenuesforelectricserviceof$173million.
DepreciationfortheSiouxscrubbers,previously deferredasaregulatoryassetwhenplacedinservicein November2010,willresultinanincreaseinannual expenseof$21million,beginninginAugust2011.In addition,capitalizationofinterestwasdiscontinuedin July2011.TheMoPSCalsoissuedanorder,inApril 2011,withrespecttoitsreviewofAmerenMissouris FACfortheperiodfromMarch1,2009,to September30,2009.TheorderrequiredAmeren Missouritorefund$18million,including$1millionforinterest,tocustomersrelatedtoearningsassociatedwithcertainlong-termpartialrequirementssalesthat weremadebyAmerenMissouriduetothelossof NorandasloadcausedbyasevereicestorminJanuary 2009.AmerenMissourihasappealedthisdecisionto theColeCountyCircuitCourt.TheMoPSCiscurrently conductingitsFACreviewforperiodsafterSeptember 2009.ItispossiblethattheMoPSCcouldorder additionalrefundsof$25millionrelatedtoperiodsafter September2009,andthiscouldresultinachargeto earnings.AmerenMissourifiledarequestwiththeMoPSCinJuly2011foranaccountingauthorityorderthatwouldallowAmerenMissouritorecoverfixed coststotaling$36millionthatwerenotrecoveredasa resultofthelossofloadcausedbythesevere2009ice stormforpotentialrecoveryinafutureelectricrate
case.InJanuary2012,AmerenMissourimadeitsinitialfilingundertheMEEIA.TheMEEIArequirestheMoPSCto ensurethatautilitysfinancialincentivesarealigned withhelpingcustomersuseenergymoreefficiently,to providetimelycostrecovery,andtoprovideearnings opportunitiesassociatedwithcost-effectiveenergy efficiencyprograms.AmerenMissourisfilingproposes athree-yearplanthatincludesaportfolioofenergy efficiencyprogramsalongwithacost-recovery mechanism.Iftheproposalisapproved,beginningin January2013,AmerenMissouriplanstoinvest
$145millionoverthreeyearsintheproposedenergy efficiencyprograms.AmerenMissourissecondfiling, madeinFebruary2012,wasarequesttoincreaseits annualrevenuesforelectricserviceby$376million, whichincludesrecoveryofthecostoftheproposed energyefficiencyprogramsincludedintheMEEIA filing.AMoPSCdecisioninAmerenMissourisMEEIA filingisanticipatedinthesecondquarterof2012,while anelectricrateorderisexpectedinDecember2012.
AmerenandAmerenMissourialsoarepursuingrecoveryfrominsurers,throughlitigation,for reimbursementofunpaidliabilityinsuranceclaimsfora December2005breachoftheupperreservoirat AmerenMissourisTaumSaukpumped-storage hydroelectricenergycenter.
Approximately340employeesofAmerenMissouriandAmerenServicesacceptedvoluntaryseparationoffers andleftthecompanyasofDecember31,2011.Asa resultofthevoluntaryseparations,AmerenandAmerenMissouriestimateanannual$20millionreductioninoperationsandmaintenanceexpensebeginningin2012.
AmerenMissourisCallawayenergycentercompletedascheduledrefuelingandmaintenanceoutageduringthefourthquarterof2011.AmerenMissourisnext scheduledrefuelingandmaintenanceoutageisinthe springof2013.Duringascheduledoutage,whichoccursevery18months,maintenanceandpurchasedpowercostsincrease,andtheamountofexcesspoweravailableforsaledecreases,versusnon-outageyears.
Amerenintendstoallocateitscapitaltothoseinvestmentopportunitieswiththehighestexpected 67 risk-adjustedreturns.Amerenbelievesthatbecauseofitsstrategiclocationinthecountry,electric transmissionmayprovideitwithsuchanopportunity.
InDecember2011,MISOapprovedthreeprojects, whichwillbedevelopedbyATXIorATX.Thefirst project,IllinoisRivers,involvesbuildinga345-kilovolt lineacrossthestateofIllinois,fromtheMissouri bordertotheIndianaborder.Workonthefirstsections ofthisprojectwillbeginin2012;theexpected in-servicedateis2016.Thelastsectionofthisproject isexpectedtobecompletedin2019.TheSpoonRiver projectinnorthwestIllinoisandtheMarkTwainproject innortheastMissouriaretheothertwoprojects approvedbyMISOinitscurrenttransmission expansionplan.Thesetwoprojectsareexpectedtobe completedin2018.Theestimatedtotalinvestmentin thesethreeprojectsisexpectedtobemorethan
$1.2billion.FERC,initsorderissuedinMay2011, approvedtransmissionrateincentivesfortheIllinois RiversprojectaswellasfortheBigMuddyproject.The BigMuddyproject,locatedprimarilyinsouthern Illinois,iscurrentlybeingevaluatedforinclusionin MISOs2012transmissionexpansionplan.
DuringJanuary2012,theweatherconditionsinAmerenMissourisandAmerenIllinoisservice territorieswereunseasonablywarm.Heatingdegree-daysinAmerensrate-regulatedserviceterritorieswere 14%lowerthannormalwinterweatherconditionsand 25%lowerthanweatherconditionsthatoccurred duringJanuary2011.
Foradditionalinformationregardingrecentrateordersandrelatedappeals,pendingrequestsfiledwithstate andfederalregulatorycommissions,theFACprudence reviewandrelatedappeal,andTaumSaukmatters,see Note1-SummaryofSignificantAccountingPolicies, Note2-RateandRegulatoryMatters,andNote15-CommitmentsandContingenciesunderPartII,Item8, ofthisreport.MerchantGenerationOperations Inthisperiodofgenerallyweakpowerprices,Amerenisfocusedonimprovingandreducingthevolatilityof, operatingcashflowswithinitsMerchantGeneration businesssothatcashflowsfromoperations approximaterequiredinvestments.Merchant Generationhasreducedoperatingcostsandsought cost-efficientmethodstocomplywithsignificant environmentalrequirements.MerchantGeneration expectstocontinuetopursuethesestrategieswhile positioningthemselvesforanexpectedfuturerecovery inpowerpricesandmargins.Aspartofthisstrategy GencocloseditsMeredosiaandHutsonvilleenergy centersattheendof2011,primarilybecause environmentalinvestmentsexpectedtoberequired werenoteconomical.Theclosuresandtheretentionof theseenergycentersemissionallowancescreate flexibilitytolowercompliancecostsatotherMerchant Generationenergycenters.Inaddition,theclosureof theHutsonvilleandMeredosiaenergycentersisnotexpectedtohaveamaterialimpactonAmerensorGencosfutureearnings.In2011,nearlyallofMerchant Generationsmarginwasgeneratedfromsalesofoutput fromfivebaseloadenergycenters(Newton,Joppa, Coffeen,E.D.Edwards,andDuckCreek).TheMerchant Generationsegmentexpectstohaveavailablegeneration fromitscoal-firedenergycentersof32.5million megawatthoursin2012.However,basedoncurrently expectedpowerprices,theMerchantGeneration segmentexpectstogenerateapproximately27million (Genco-20million)megawatthoursofpowerin2012.
SeeNote15-CommitmentsandContingenciesunder PartII,Item8,ofthisreportforfurtherdiscussionof environmentalmattersandcomplianceplans.
PowerpricesintheMidwestaffecttheamountofrevenuesandcashflowsMerchantGenerationand Gencocangeneratebymarketingpowerintothe wholesaleandretailmarkets.Marketpricesforpower havedecreasedoverthepastthreeyears.During2012, themarketpriceforpowerfordeliveryinthecurrentyear hasdeclinedbelow2011levelsbecauseoffactorssuch asdecliningnaturalgaspricesandthestayofthe CSAPR.FromDecember31,2011,throughJanuary31, 2012,themarketpriceforpowerattheIndianaHub decreasedby12%.AmerensMerchantGeneration segmentandGencowillbeadverselyimpactedbythe decliningmarketpriceofpowerforanyunhedged generation.MerchantGenerationandGencoare currentlyevaluatingthisrecentpricedeclineandthe impactofthestayoftheCSAPR,andthepotential impacttheseeventsmayhaveontheiroperatingand capitalinvestmentplans.In2012,GencodeceleratedtheconstructionoftwoscrubbersatitsNewtonenergycenter,andAERGremovedfromitsfive-yearcapital expendituresforecastpreviouslyplannedprecipitator upgradesatitsE.D.Edwardsenergycenter.Basedon currentenvironmentalrulesandregulations,ifMerchant GenerationandGencodonotcompletethese environmentalupgradesbythebeginningof2015, MerchantGenerationandGencomayneedtoreduce generationoutputattheirenergycenterstoreduce emissions.MerchantGenerationandGencowillalso evaluatewhetherthedeclineinthemarketpricefor powerinthefirstquarterof2012,andanychangesto operatingandcapitalplans,isindicativethatthecarrying valueofitsenergycentersmaynotberecoverable.A failuretoachieveforecastedoperatingresultsandcash flows,anunfavorablechangeinforecastedoperating resultsandcashflows,orareductionintheexpected usefullivesofMerchantGenerationsenergycenters couldresultintherecognitionoflong-livedasset impairmentcharges.MerchantGenerationsenergy centerswithoutpollutioncontrolequipmentaremost exposedtodecliningpowerpricesascomplianceoptions forenvironmentallawsandregulationscouldbecome prohibitivelyexpensive.
Toreducecashflowvolatility,MarketingCompany,throughamixofphysicalandfinancialsalescontracts, targetstohedgeMerchantGenerationsexpected outputby80%to90%forthefollowingyear,50%to 68 70%fortwoyearsout,and30%to50%forthreeyearsout.AsofJanuary31,2012,MarketingCompanyhad hedgedapproximately25millionmegawatthoursof MerchantGenerationsexpectedgenerationfor2012,at anaveragepriceof$44permegawatthour.For2013, MarketingCompanyhadhedgedapproximately 14millionmegawatthoursofMerchantGenerations forecastedgenerationsalesatanaveragepriceof$40 permegawatthour.For2014,MarketingCompanyhad hedgedapproximately7millionmegawatthoursof MerchantGenerationsforecastedgenerationsalesat anaveragepriceof$44permegawatthour.Any unhedgedforecastedgenerationwillbeexposedto marketpricesatthetimeofsale.Asaresult,anynew physicalorfinancialpowersalesmaybeatpricelevels lowerthanpreviouslyexperiencedandlowerthanthe valueofexistinghedgedsales.
MerchantGenerationisalsosupportingdevelopmentofanenergycapacitymarketwithinMISO,whichis expectedtosupportlonger-terminvestment.FERCis expectedtoissueanorderonMISOsproposalto establishacapacitymarketwithintheRTO.TheMISO proposalcallsforthefirstannualcapacityauctiontobe heldinApril2013fortheJune2013toMay2014 planningyear.
Tofurtherreducecashflowvolatility,MerchantGenerationseekstohedgefuelcostsconsistentwith powersales.AsofJanuary31,2012,for2012 MerchantGenerationhadhedgedfuelcostsfor approximately25millionmegawatthoursofcoalandup to28millionmegawatthoursofbasetransportationat about$24permegawatthour.For2013,Merchant Generationhadhedgedfuelcostsforapproximately 12millionmegawatthoursofcoalandupto27million megawatthoursofbasetransportationatabout$25.50 permegawatthour.For2014,MerchantGenerationhad hedgedfuelcostsforapproximately5million megawatthoursofcoalandupto21million megawatthoursofbasetransportationatabout$25.50 permegawatthour.In2012,GencoandtheMerchant Generationsegmentaretargetingareductionincoal inventories.SeeItem7A-QuantitativeandQualitative DisclosuresAboutMarketRiskofthisreportfor additionalinformationaboutthepercentageoffueland transportationrequirementsthatareprice-hedgedfor 2012through2016.LiquidityandCapitalResources TheAmerenCompaniesseektomaintainaccesstothecapitalmarketsatcommerciallyattractiveratesinorder tofundtheirbusinesses.Theenhancementof regulatoryframeworksandreturnsisexpectedto improvecashflows,creditmetrics,andrelatedaccess tocapitalforAmerensrate-regulatedbusinesses.
GencoandtheMerchantGenerationsegmentseektofundtheiroperationsinternallyandthereforeseeknot torelyonfinancingfromAmerenorexternal,third-partysources.GencoandtheMerchantGeneration segmentwillcontinuetoseektodefercapitalandoperatingexpenses,sellcertainassets,andtakeotheractionsasnecessarytofundtheiroperationsinternally whilemaintainingsafeandreliableoperations.Underits indenture,Gencomaynotborrowadditionalfundsfrom external,third-partysourcesifitsinterestcoverageratio islessthanaspecifiedminimumoritsleverageratiois greaterthanaspecifiedmaximum.Basedonprojections asofDecember31,2011,ofGencosoperatingresults andcashflows,weexpectthat,bytheendofthefirst quarterof2013,Gencosinterestcoverageratiowillbe lessthantheminimumratiorequiredforthecompanyto borrowadditionalfundsfromexternal,third-party sources.Gencosindenturedoesnotrestrict intercompanyborrowingsfromAmerensnon-state-regulatedsubsidiarymoneypool.However,borrowings fromthemoneypoolaresubjecttoAmerenscontrol, andifaGencointercompanyfinancingneedwereto arise,borrowingsfromthenon-state-regulated subsidiarymoneypoolbyGencowouldbedependenton considerationbyAmerenofthefactsandcircumstances existingatthattime.
TheAmerenCompanieshavealsoenteredintomultiyearcreditfacilityagreementsthatcumulativelyprovide
$2.1billionofcreditthroughSeptember10,2013.We believethatourliquidityisadequategivenourexpected operatingcashflows,capitalexpenditures,andrelated financingplans.However,therecanbenoassurancethat significantchangesineconomicconditions,disruptions inthecapitalandcreditmarkets,orotherunforeseen eventswillnotmateriallyaffectourabilitytoexecuteour expectedoperating,capitalorfinancingplans.
InSeptember2012,$173millionofAmerenMissouris5.25%seniorsecurednotesmature.
AsofDecember31,2011,Amerenhadapproximately$390millioninfederalincometaxnetoperatingloss carryforwards(AmerenMissouri-$140million,Ameren Illinois-$90million,Genco-$20million)and
$72millioninfederalincometaxcreditcarryforwards (AmerenMissouri-$11million,AmerenIllinois-
$-million,Genco-$1million).Thesecarryforwardsare expectedtosatisfyincometaxliabilitiesthroughtheend of2013(AmerenMissouri-2012,AmerenIllinois-2012,Genco-2013).
Between2012and2021,Amerencurrentlyexpectstoinvestbetween$1.8billionto$2.2billiontoretrofitits coal-firedenergycenterswithpollutioncontrol equipmentincompliancewithenvironmentallawsand regulations.Anypollutioncontrolinvestmentswillresult indecreasedenergycenteravailabilityduring constructionandsignificantlyhigherongoingoperating expenses.AnypollutioncontrolinvestmentsatAmeren Missouriareexpectedtoberecoverablefromratepayers, subjecttoprudencereviews.Regulatorylagmay materiallyaffectthetimingofsuchrecoveryandreturns ontheinvestments,andthereforeaffectourcashflows andrelatedfinancingneeds.Therecoverabilityof amountsexpendedinourMerchantGenerationsegment willdependonwhethermarketpricesforpoweradjust asaresultofmarketconditionsreflectingincreased environmentalcostsforcoal-firedgenerators.
69 InOctober2011,Amerensboardofdirectorsdeclaredafourthquarterdividendof40centspercommon share,a3.9%increasefromthepriorquarterly dividendof38.5centspershare,resultinginan annualizedequivalentdividendof$1.60pershare.
BasedonthesharesoutstandingattheendofOctober 2011,onanannualbasis,thedividendincreasewill resultinadditionaldividendsof$15million.
InFebruary2012,AmerencompletedtheassetsaleofitsMedinaValleyenergycentersnetpropertyandplantforcashproceedsof$16million.ThelossofmargincontributedbyMedinaValleyisnotexpectedto materiallyimpactAmerens2012resultsofoperations.
AmerenandGencoarecurrentlyexploringopportunitiestomaketheMeredosiaenergycenter availableforthosepartiesinterestedinrepoweringone ofitsunitstocreateanoxy-fuelcombustioncoal-fired energycenterdesignedforpermanentCO 2captureand storage.REGULATORYMATTERSSeeNote2-RateandRegulatoryMattersunderPartII,Item8,ofthisreport.ACCOUNTINGMATTERSCriticalAccountingEstimatesPreparationofthefinancialstatementsandrelateddisclosuresincompliancewithGAAPrequirestheapplicationofappropriatetechnicalaccountingrulesandguidance,aswellastheuseofestimates.Theseestimatesinvolvejudgments regardingmanyfactorswhichinandofthemselvescouldmateriallyaffectthefinancialstatementsanddisclosures.Wehave outlinedbelowthecriticalaccountingestimatesthatwebelievearemostdifficult,subjective,orcomplex.Anychangeinthe assumptionsorjudgmentsappliedindeterminingthefollowingmatters,amongothers,couldhaveamaterialimpactonfuture financialresults.AccountingEstimateUncertaintiesAffectingApplicationRegulatoryMechanismsandCostRecoveryAmeren,AmerenMissouriandAmerenIllinoisdefercostsinaccordancewithauthoritativeaccountingguidance,and makeinvestmentsthattheyassumewillbecollectedin futurerates.
Regulatoryenvironmentandexternalregulatorydecisionsandrequirements Anticipatedfutureregulatorydecisionsandtheirimpact Impactofderegulation,ratefreezes,prudencyreviews,andcompetitiononratemakingprocessandabilityto recovercosts Beginningin2012,AmerenIllinoisassessmentofandabilitytoestimatethecurrentyearselectricdelivery servicecoststobereflectedinrevenuesandrecovered fromcustomersinasubsequentyearundertheIEIMA performance-basedformularatemakingprocessBasisforJudgmentWedeterminewhichcostsarerecoverablebyconsultingpreviousrulingsbystateregulatoryauthoritiesinjurisdictionswhereweoperateandanyotherfactorsthatmayindicatewhethercostrecoveryisprobable.Iffactsandcircumstanceslead ustoconcludethatarecordedregulatoryassetisnolongerprobableofrecoveryorthatplantassetsareprobableof disallowance,werecordachargetoearnings,whichcouldbematerial.SeeNote2-RateandRegulatoryMattersunderPart II,Item8,ofthisreportforquantificationoftheseassetsforeachoftheAmerenCompanies,excludingGenco.UnbilledRevenueAttheendofeachperiod,Ameren,AmerenMissouriandAmerenIllinoisprojectexpectedusageandestimatethe amountofrevenuetorecordforservicesthathavebeen providedtocustomersbutnotyetbilled.
Projectingcustomerenergyusage Estimatingimpactsofweatherandotherusage-affectingfactorsfortheunbilledperiod Estimatinglossofenergyduringtransmissionand deliveryBasisforJudgmentWebaseourestimateofunbilledrevenueeachperiodonthevolumeofenergydelivered,asvaluedbyamodelofbillingcyclesandhistoricalusageratesandgrowthbycustomerclassforourservicearea.Thisfigureisthenadjustedforthe modeledimpactofseasonalandweathervariationsbasedonhistoricalresults.Seethebalancesheetsforeachofthe AmerenCompanies,excludingGenco,underPartII,Item8,ofthisreportforunbilledrevenueamounts.
70 AccountingEstimateUncertaintiesAffectingApplicationDerivativeFinancialInstrumentsWeaccountforderivativefinancialinstrumentsand measuretheirfairvalueinaccordancewithauthoritative accountingguidance.Theidentificationandclassification ofaderivativeandthefairvalueofsuchderivativemust bedetermined.SeeCommodityPriceRiskandFairValue ofContractsinQuantitativeandQualitativeDisclosures AboutMarketRiskunderPartII,Item7A,Note7-DerivativeFinancialInstrumentsandNote8-FairValue MeasurementsunderPartII,Item8,ofthisreport.
Ourabilitytoidentifyderivatives OurabilitytoassesswhetherderivativecontractsqualifyfortheNPNSexception Ourabilitytoconsumeorproducenotionalvaluesofderivativecontracts Marketconditionsintheenergyindustry,especiallytheeffectsofpricevolatilityandliquidity Valuationassumptionsonlongertermcontractsduetolackofobservableinputs EffectivenessofderivativesthathavebeendesignatedashedgesCounterpartydefaultriskBasisforJudgmentWeevaluatecontractstodeterminewhethertheycontainderivatives.Determiningwhetherornotacontractqualifiesasa derivativeunderauthoritativeaccountingguidancerequiresustoexercisesignificantjudgmentininterpretingthedefinition ofaderivativeandapplyingthatdefinition.Authoritativeaccountingguidanceregardingderivativeinstrumentsrequiresthat allcontractsconsideredtobederivativeinstrumentsberecordedonthebalancesheetattheirfairvalues,unlesstheNPNSexceptionapplies.WedeterminewhethertoexcludethefairvalueofcertainderivativesfromvaluationundertheNPNSprovisionsofauthoritativeaccountingguidanceafterassessingourintentandabilitytophysicallydelivercommodities purchasedandsold.Further,ourforecastedpurchasesandsalesalsosupportourdesignationofsomefairvaluedderivative instrumentsascashflowhedges.Fairvalueofourderivativesismeasuredinaccordancewithauthoritativeaccounting guidance,whichprovidesafairvaluehierarchythatprioritizesinputstovaluationtechniques.Weusevaluationtechniques thatmaximizetheuseofobservableinputsandminimizetheuseofunobservableinputs.Whenwedonothaveobservable inputs,weusecertainassumptionsthatmarketparticipantswoulduseinpricingtheassetorliability,includingassumptions aboutrisksinherentintheinputstothevaluation.Ourvaluationsalsoreflectourownassessmentofcounterpartydefault risk,guidedbythebestinternalandexternalinformationavailable.IfwewererequiredtodiscontinueouruseoftheNPNS exceptionorcashflowhedgetreatmentforsomeofourcontracts,theimpactofchangesinfairvaluefortheapplicable contractscouldbematerialtoourearningsandfinancialposition.ValuationofLong-LivedAssetsandAssetRetirementObligationsWeperiodicallyassessthecarryingvalueofourlong-lived assetstodeterminewhethertheyareimpaired.Wealso reviewfortheexistenceofassetretirementobligations.If anassetretirementobligationisidentified,wedetermine itsfairvalueandsubsequentlyreassessandadjustthe obligation,asnecessary.
Managementsidentificationofimpairmentindicators Changesinbusiness,industry,laws,technology,oreconomicandmarketconditions Valuationassumptionsandconclusions Ourassessmentofmarketparticipants Estimatedusefullivesofoursignificantlong-lived assetsActionsorassessmentsbyourregulators IdentificationofanassetretirementobligationandassumptionsaboutthetimingofassetremovalsBasisforJudgmentWhenevereventsorchangesincircumstancesindicateavaluationmayhavechanged,weusevariousmethodologiesthatwe believemarketparticipantswouldusetodeterminevaluationsanddiscounted,undiscounted,andprobabilisticdiscounted cashflowmodelswithmultipleoperatingscenarios.Theidentificationofassetretirementobligationsisconductedthrough thereviewoflegaldocumentsandinterviews.SeeNote1-SummaryofSignificantAccountingPoliciesunderPartII,Item8, ofthisreportforquantificationofourassetretirementobligations.SeeNote17Goodwill,ImpairmentandOtherCharges underPartII,Item8,ofthisreportforadditionalinformationofourlong-livedassetimpairmentevaluationandcharges
recorded.71 AccountingEstimateUncertaintiesAffectingApplicationBenefitPlanAccountingBasedonactuarialcalculations,weaccruecostsof providingfutureemployeebenefitsinaccordancewith authoritativeaccountingguidanceregardingbenefitplans.
SeeNote11-RetirementBenefitsunderPartII,Item8, ofthisreport.
Futurerateofreturnonpensionandotherplanassets Interestratesusedinvaluingbenefitobligations Healthcarecosttrendrates Timingofemployeeretirementsandmortality assumptions Abilitytorecovercertainbenefitplancostsfromour ratepayers Changingmarketconditionsthatmayaffectinvestmentandinterestrateenvironments Impactsofthehealthcarereformlegislationenactedin 2010BasisforJudgmentOurultimateselectionofthediscountrate,healthcaretrendrate,andexpectedrateofreturnonpensionandother postretirementbenefitplanassetsisbasedonourconsistentapplicationofassumption-settingmethodologiesandour reviewofavailablehistorical,current,andprojectedrates,asapplicable.SeeNote11-RetirementBenefitsunderPartII, Item8,ofthisreportforsensitivityofAmerensbenefitplanstopotentialchangesintheseassumptions.AccountingforContingenciesWemakejudgmentsandestimatesinrecordingliabilities forclaims,litigation,environmentalremediation,the actionsofvariousregulatoryagencies,orothermatters thatoccurinthenormalcourseofbusiness.Werecorda losscontingencywhenitisprobablethataliabilityhas beenincurredandtheamountofthelosscanbe reasonablyestimated.Againcontingencyisnotrecorded untilrealizedorrealizable.
Estimatingfinancialimpactofevents Estimatinglikelihoodofoutcomes Regulatoryandpoliticalenvironmentsand requirements Outcomeoflegalproceedings,settlementsorother factorsBasisforJudgmentThedeterminationofalosscontingencyrequiressignificantjudgmentastotheexpectedoutcomeofeachcontingencyin futureperiods.Inmakingthedeterminationastotheamountofpotentiallossandtheprobabilityofloss,weconsiderall availableevidenceincludingtheexpectedoutcomeofpotentiallitigation.Ifnoestimateisbetterthananotherwithinour rangeofestimates,werecordourbestestimateofalossortheminimumvalueofourestimatedrangeofoutcomes.As additionalinformationbecomesavailable,wereassessthepotentialliabilityrelatedtothecontingencyandreviseour estimates.Inourevaluationoflegalmatters,managementconsultswithlegalcounselandreliesonanalysisofrelevantcase lawandlegalprecedents.SeeNote2-RateandRegulatoryMatters,Note10-CallawayEnergyCenter,andNote15-CommitmentsandContingenciesunderPartII,Item8,ofthisreportforinformationontheAmerenCompanies
contingencies.ImpactofFutureAccountingPronouncementsSeeNote1-SummaryofSignificantAccountingPoliciesunderPartII,Item8,ofthisreport.EFFECTSOFINFLATIONANDCHANGINGPRICESAmerensratesforretailelectricandnaturalgasutilityserviceareregulatedbytheMoPSCandtheICC.Nonretail electricratesareregulatedbyFERC.Rateregulationis generallybasedontherecoveryofhistoricalorprojected costs.Asaresult,revenueincreasescouldlagbehind changingprices.AmerenIllinoishasrecentlyelectedto participateintheperformance-basedformularatemaking processfordeterminingretailratesforitselectricdelivery servicebusinessestablishedbytheIEIMA.AmerenIllinois participationinthisformularatemakingprocesswill terminateiftheaverageresidentialrateincreasesbymore than2.5%annuallyfromJune2011throughMay2014.Theaverageresidentialrateincludesgenerationservice,whichisoutsideofAmerenIllinoiscontrolasitisrequiredto purchaseallofitspowerthroughprocurementprocesses administeredbytheIPA.Thecostofprocuredpowercanbe affectedbyinflation.Withinthatformula,themonthly averageyieldsof30-yearUnitedStatesTreasurybondsare thebasisforAmerenIllinoisreturnonequity.Therefore, pendingICCapprovalofAmerenIllinoisinitialfilingunder theIEIMA,whichisexpectedtooccurinOctober2012, therewillbeadirectcorrelationbetweentheyieldofUnited StatesTreasurybonds,whichareaffectedbyinflation,and theearningsofAmerenIllinoiselectricdistribution business.Inflationaffectsouroperations,earnings, stockholdersequity,andfinancialperformance.
72 Thecurrentreplacementcostofourutilityplantsubstantiallyexceedsourrecordedhistoricalcost.Under existingregulatorypractice,onlythehistoricalcostofplant isrecoverablefromcustomers.Asaresult,cashflows designedtoproviderecoveryofhistoricalcoststhrough depreciationmightnotbeadequatetoreplacetheplantin futureyears.AmerensMerchantGenerationbusinessdoes nothaveregulatedrecoverymechanismsandistherefore dependentonmarketpricesforpowertoreflectrising
costs.AmerenMissourirecoversthecostoffuelforelectricgenerationandthecostofpurchasedpowerbyadjusting ratesasallowedthroughtheFAC.AmerenIllinoisrecovers powersupplycostsfromelectriccustomersbyadjusting ratesthrougharidermechanismtoaccommodatechanges inpowerprices.AmerenMissouriandAmerenIllinoisareaffectedbychangesinthecostofelectrictransmissionservices.FERC regulatestherateschargedandthetermsandconditions forelectrictransmissionservices.EachRTOseparatelyfiles regionaltransmissiontariffratesforapprovalbyFERC.All memberswithinthatRTOarethensubjectedtothoserates.
BecausetheyaremembersofMISO,AmerenMissouris andAmerenIllinoistransmissionratesarecalculatedin accordancewithMISOsrateformula.Thetransmission rate,updatedinJuneofeachyear,isbasedonFERCfilings forthepreviousyear.Thisrateischargeddirectlytowholesalecustomers.AmerenIllinoisalsochargesthisratedirectlytoalternativeretailelectricsuppliers.ForIllinois retailcustomerswhohavenotchosenanalternativeretail electricsupplier,thetransmissionrateiscollectedthrough aridermechanism.Thisrateisnotdirectlychargedto MissouriretailcustomersbecausetheMoPSCincludes transmission-relatedcostsinsettingbundledretailratesin
Missouri.InourMissouriandIllinoisretailnaturalgasutilityjurisdictions,changesingascostsaregenerallyreflectedin billingstogascustomersthroughPGAclauses.Ameren,AmerenMissouriandGencoareaffectedbychangesinmarketpricesfornaturalgastotheextentthat theymustpurchasenaturalgastorunCTs.These companieshavestructuredvarioussupplyagreementsto maintainaccesstomultiplenaturalgaspoolsandsupply basins,andtominimizetheimpacttotheirfinancial statements.AmerenMissourisexposuretochangesin marketpricesofnaturalgasismitigatedbyitsabilityto recoverincreasingcostsviaaFAC.SeeQuantitativeand QualitativeDisclosuresAboutMarketRisk-Commodity PriceRiskunderPartII,Item7A,belowforadditional
information.SeeNote2-RateandRegulatoryMattersunderPartII,Item8,ofthisreportforadditionalinformationon thecostrecoverymechanisms.ITEM7A.QUANTITATIVEANDQUALITATIVEDISCLOSURESABOUTMARKETRISK.Marketriskistheriskofchangesinvalueofaphysicalassetorafinancialinstrument,derivativeornonderivative, causedbyfluctuationsinmarketvariablessuchasinterest rates,commodityprices,andequitysecurityprices.A derivativeisacontractwhosevalueisdependenton,or derivedfrom,thevalueofsomeunderlyingassetorindex.
Thefollowingdiscussionofourriskmanagementactivities includesforward-lookingstatementsthatinvolverisksand uncertainties.Actualresultscoulddiffermateriallyfrom thoseprojectedintheforward-lookingstatements.We handlemarketrisksinaccordancewithestablishedpolicies, whichmayincludeenteringintovariousderivative transactions.Inthenormalcourseofbusiness,wealsoface risksthatareeithernonfinancialornonquantifiable.Such risks,principallybusiness,legal,andoperationalrisks,are notpartofthefollowingdiscussion.Ourriskmanagementobjectiveistooptimizeourphysicalgeneratingassetsandtopursuemarket opportunitieswithinprudentriskparameters.Ourrisk managementpoliciesaresetbyariskmanagementsteering committee,whichiscomposedofsenior-levelAmeren
officers.InterestRateRiskWeareexposedtomarketriskthroughchangesininterestratesassociatedwith:
long-termandshort-termvariable-ratedebt; fixed-ratedebt; auction-ratelong-termdebt;and definedpensionandpostretirementbenefitplans.Wemanageourinterestrateexposurebycontrollingtheamountofdebtinstrumentswehavewithinourtotal capitalizationportfolioandbymonitoringtheeffectsof marketchangesininterestrates.Fordefinedpensionand postretirementbenefitplans,wecontrolthedurationand theportfoliomixofourplanassets.Thefollowingtablepresentstheestimatedincreaseinourannualinterestexpenseanddecreaseinnetincomeif interestratesweretoincreaseby1%onvariable-ratedebt outstandingatDecember31,2011:InterestExpenseNetIncome (a)Ameren (b)................$4$(2)AmerenMissouri..........2(1)AmerenIllinois............(c)(c)
Genco...................--(a)Calculationsarebasedonanestimatedtaxrateof40%,38%,41%and41%forAmeren,AmerenMissouri,AmerenIllinoisand Genco,respectively.(b)Includesintercompanyeliminations.
(c)Lessthan$1million.Theestimatedchangesabovedonotconsiderthepotentialreducedoveralleconomicactivitythatwouldexist 73 insuchanenvironment.Intheeventofasignificantchangeininterestrates,managementwouldprobablyactto mitigatefurtherexposuretothismarketrisk.However,due totheuncertaintyofthespecificactionsthatmightbetaken andtheirpossibleeffects,thissensitivityanalysisassumes nochangeinourfinancialstructure.CreditRiskCreditriskrepresentsthelossthatwouldberecognizedifcounterpartiesfailtoperformascontracted.
Exchange-tradedcontractsaresupportedbythefinancial andcreditqualityoftheclearingmembersoftherespective exchangesandhavenominalcreditrisk.Inallother transactions,weareexposedtocreditriskintheeventof nonperformancebythecounterpartiestothetransaction.
SeeNote7-DerivativeFinancialInstrumentsunderPartII, Item8,ofthisreportforinformationonthepotentialloss oncounterpartyexposureasofDecember31,2011.Ourrate-regulatedrevenuesareprimarilyderivedfromsalesordeliveryofelectricityandnaturalgastocustomers inMissouriandIllinois.Ourphysicalandfinancial instrumentsaresubjecttocreditriskconsistingoftrade accountsreceivablesandexecutorycontractswithmarket riskexposures.Theriskassociatedwithtradereceivablesis mitigatedbythelargenumberofcustomersinabroad rangeofindustrygroupswhomakeupourcustomerbase.
AtDecember31,2011,nononaffiliatedcustomer representedmorethan10%,intheaggregate,ofour accountsreceivableatAmerenIllinois.Noranda,Ameren Missourislargestnonaffiliatedelectriccustomer,has appealedcertainaspectsofthe2009and2010rateorders issuedbytheMoPSC.Norandahaspaidintocourt registriesamountsthatrepresentmorethan10%,inthe aggregate,ofAmerenMissourisaccountsreceivableat December31,2011.InNovember2011,theMissouriCourt ofAppealsissuedarulingthatupheldtheMoPSCsJanuary 2009electricrateorder.Therefore,AmerenMissouri expectstoreceiveallofthefundsheldintheStoddard CountyCircuitCourtsregistryrelatingtothe2009rate order,whichtotaled$20millionasofDecember31,2011, duringthefirstquarterof2012.Thefundsrelatedtothe 2010appealwillremainintheColeCountyCircuitCourts registrypendingresolution,whichisexpectedin2012.See Note2-RateandRegulatoryMattersunderPartII,Item8, ofthisreportforadditionalinformation.Theriskassociated withAmerenIllinoiselectricandnaturalgastrade receivablesisalsomitigatedbyarateadjustment mechanismthatallowsAmerenIllinoistorecoverthe differencebetweenitsactualbaddebtexpenseunderGAAP andthebaddebtexpenseincludedinitsbaserates.Ameren MissouriandAmerenIllinoiscontinuetomonitorthe impactofincreasingratesoncustomercollections.Ameren MissouriandAmerenIllinoismakeadjustmentstotheir allowancefordoubtfulaccountsasdeemednecessaryto ensurethatsuchallowancesareadequatetocover estimateduncollectiblecustomeraccountbalances.Ameren,AmerenMissouri,AmerenIllinoisandGencomayhavecreditexposureassociatedwithoff-systemorwholesalepurchaseandsaleactivitywithnonaffiliatedcompanies.AtDecember31,2011,Amerens,Ameren Missouris,AmerenIllinoisandGencoscombinedcredit exposuretononaffiliatedtradingcounterparties,excluding coalsuppliers,deemedbelowinvestmentgradeeither throughexternalorinternalcreditevaluations,was
$48million,netofcollateral(2010-$204million).Almost allofthe$48millionexposurerelatestoAmerenIllinois long-termpurchasepowerandrenewableenergycredit contracts.ThesecontractswereprocuredthroughtheIPA andarepassedthroughdirectlytoAmerenIllinois customers.AtDecember31,2011,thecombinedcredit exposurestononaffiliatedcoalsuppliers,deemedbelow investmentgradeeitherthroughexternalorinternalcredit evaluations,netofcollateral,were$35million,$33million and$2millionatAmeren,AmerenMissouriandGenco, respectively.(2010-$19million,$8million,$10million, respectively).Weestablishcreditlimitsforthesecounterpartiesandmonitortheappropriatenessoftheselimitsonanongoing basisthroughacreditriskmanagementprogram.
Monitoringinvolvesdailyexposurereportingtosenior management,mastertradingandnettingagreements,and creditsupport,suchaslettersofcreditandparental guarantees.Wealsoanalyzeeachcounterpartysfinancial conditionbeforeweenterintosales,forwards,swaps, futures,oroptioncontracts.Weestimateourcredit exposuretoMISOassociatedwiththeMISOEnergyand OperatingReservesMarkettobe$29millionat December31,2011(2010-$53million).EquityPriceRiskOurcostsforprovidingdefinedbenefitretirementandpostretirementbenefitplansaredependentuponanumber offactors,includingtherateofreturnonplanassets.
Amerenmanagesplanassetsinaccordancewiththe prudentinvestorguidelinescontainedinERISA.Amerens goalistoensurethatsufficientfundsareavailableto providethebenefitsatthetimetheyarepayablewhilealso tomaximizingtotalreturnonplanassetsandminimizing expensevolatilityconsistentwithitstoleranceforrisk.
Amerendelegatesinvestmentmanagementtospecialists.
Whereappropriate,Amerenprovidestheinvestment managerwithguidelinesthatspecifyallowableand prohibitedinvestmenttypes.Amerenregularlymonitors managerperformanceandcompliancewithinvestment
guidelines.Theexpectedreturnonplanassetsisbasedonhistoricalandprojectedratesofreturnforcurrentand plannedassetclassesintheinvestmentportfolio.Projected ratesofreturnforeachassetclasswereestimatedafteran analysisofhistoricalexperience,futureexpectations,and thevolatilityofthevariousassetclasses.Afterconsidering thetargetassetallocationforeachassetclass,weadjusted theoverallexpectedrateofreturnfortheportfoliofor historicalandexpectedexperienceofactiveportfolio managementresultscomparedwithbenchmarkreturns, andfortheeffectofexpensespaidfromplanassets.
74 Infutureyears,thecostsofsuchplanswillbereflectedinnetincome,OCI,orregulatoryassets.Contributionsto theplanscouldincreasematerially,ifwedonotachieve pensionandpostretirementassetportfolioinvestment returnsequaltoorinexcessofour2012assumedreturn onplanassetsof7.75%and7.50%,respectively.AmerenMissourialsomaintainsatrustfund,asrequiredbytheNRCandMissourilaw,tofundcertaincosts ofnuclearplantdecommissioning.AsofDecember31, 2011,thisfundwasinvestedprimarilyindomesticequity securities(66%)anddebtsecurities(34%).Ittotaled
$357million(2010-$337million).Bymaintaininga portfoliothatincludeslong-termequityinvestments, AmerenMissouriseekstomaximizethereturnstobeused tofundnucleardecommissioningcostswithinacceptable parametersofrisk.However,theequitysecuritiesincluded intheportfolioareexposedtopricefluctuationsinequity markets.Thedebtsecuritiesareexposedtochangesin interestrates.AmerenMissouriactivelymonitorsthe portfoliobybenchmarkingtheperformanceofits investmentsagainstcertainindicesandbymaintainingand periodicallyreviewingestablishedtargetallocation percentagesoftheassetsofthetrusttovariousinvestment options.AmerenMissourisexposuretoequitypricemarket riskisinlargepartmitigated,becauseAmerenMissouriis currentlyallowedtorecoveritsdecommissioningcosts, whichwouldincludeunfavorableinvestmentresults, throughelectricrates.Additionally,Amerenhascompany-ownedlifeinsurancecontractsthatareusedtosupportAmerens deferredcompensationplans.Theselifeinsurancecontracts includeequityanddebtinvestmentsthatareexposedto pricefluctuationsinequitymarketsandtochangesin interestrates.CommodityPriceRiskWeareexposedtochangesinmarketpricesforpower,emissionallowances,coal,transportationdiesel,naturalgas anduranium.Amerens,AmerenMissourisandGencosrisksofchangesinpricesforpowersalesarepartiallyhedged throughsalesagreements.MerchantGenerationalsoseeks tosellpowerforwardtowholesale,municipal,and industrialcustomerstolimitexposuretochangingprices.
Wealsoattempttomitigatefinancialrisksthroughrisk managementprogramsandpolicies,whichinclude forward-hedgingprograms,andthroughtheuseof derivativefinancialinstruments(primarilyforward contracts,futurescontracts,optioncontracts,andfinancial swapcontracts).However,aportionofthegeneration capacityofAmeren,AmerenMissouriandGencoisnot contractedthroughphysicalorfinancialhedge arrangementsandisthereforeexposedtovolatilityin marketprices.Thefollowingtableshowshowourearningsmightdecreaseifpowerpricesweretodecreaseby1%on unhedgedeconomicgenerationfor2012through2015:NetIncome (a)Ameren (b)................................$(13)AmerenMissouri..........................(c)
Genco...................................
(11)(a)Calculationsarebasedonanestimatedtaxrateof40%,38%and41%forAmeren,AmerenMissouriandGenco,respectively.(b)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.(c)Lessthan$1million.Amerensforward-hedgingpowerprogramsincludetheuseofderivativefinancialswapcontracts.Theseswap contractsfinanciallysettleafixedpriceagainstafloating price.Thefloatingpriceistypicallytherealized,orsettled, priceataliquidregionalhubatsomeforwardperiodof time.Amerencontrolstheuseofderivativefinancialswap contractswithvolumetricandcorrelationlimitsthatare intendedtomitigateanymaterialadversefinancialimpact.
Historically,Amerenhasusedswapsthatsettledagainstthe CinergyHubMISOlocationalmarginalpricing.Thishubhad traditionallybeenthemostliquidlocation,withastrong correlationtothepricingthatwasrealizedatourgenerating locations.AsofDecember31,2011,MISOstopped publishingCinergyHubpricing.Asaresult,Amerenwill nowusetheIndianaHubandotherhubsasnecessaryfor financialhedging.Amerendoesnotexpectanymaterial adversefinancialimpacttotheoutcomesofitsforward-hedgingprogramsasaresultofthischange.Amerenwill continuetopursuethebestavailableoptionstofixpricing fortheoutputofitsgeneratingunits.Amerenalsousesitsportfoliomanagementandtradingcapabilitiesbothtomanageriskandtodeployrisk capitaltogenerateadditionalreturns.Duetoourphysical presenceinthemarket,weareabletoidentifyandpursue opportunities,whichcangenerateadditionalreturns throughportfoliomanagementandtradingactivities.Allof thisactivityisperformedwithinacontrolledrisk managementprocess.Weestablishvalueatrisk(VaR)and stop-losslimitsthatareintendedtopreventanymaterial negativefinancialimpact.Wemanagerisksassociatedwithchangingpricesoffuelforgenerationwithtechniquessimilartothoseweuse tomanagerisksassociatedwithchangingmarketpricesfor
electricity.MerchantGenerationdoesnothavetheabilitytopasshigherfuelcoststhroughtoitscustomersforelectric operationswiththeexceptionofanimmaterialpercentage oftheoutputthathasbeencontractedwithafuelcostpass-through.AmerenMissourihasaFACthatallowsAmeren Missouritorecover,throughcustomerrates,95%of changesinfuelandpurchasedpowercosts,netof off-systemrevenues,includingMISOcostsandrevenues, moreorlessthantheamountsetinbaserates,withouta traditionalrateproceeding.AmerenMissouriremains exposedtotheremaining5%.
75 Ameren,AmerenMissouriandGencohaveenteredintocoalcontractswithvarioussupplierstopurchasecoal tomanagetheirexposuretofuelprices.Thecoalhedging strategyisintendedtosecureareliablecoalsupplywhile reducingexposuretocommoditypricevolatility.
Additionally,thetypeofcoalburnedispartofAmeren Missourisenvironmentalcompliancestrategy.Ameren Missourihasamultiyearagreementtopurchase ultra-low-sulfurcoalthrough2017tocomplywiththe CSAPRandotherenvironmentalregulations.Thecoal contractiswithasinglesupplier.Disruptionsofthe deliveriesofthatultra-low-sulfurcoalfromthesupplier couldcompromiseAmerenMissourisabilitytooperatein compliancewithemissionstandards.Othersourcesof ultra-low-sulfurcoalarelimitedandtheconstructionof pollutioncontrolequipmentrequiressignificantleadtimeto becomeoperational.Shouldatemporarydisruptionof ultra-low-sulfurcoaldeliveriesoccuranditsexisting inventoryofultra-low-sulfurcoalbecomesfullydepleted, andothersourcesofultra-low-sulfurcoalarenotavailable, AmerenMissouriwoulduseitsexistingemission allowancesorpurchaseemissionallowancesinorderto achievecompliancewithenvironmentalregulations.Genco purchasescoalbasedonexpectedpowersales,generally throughbidprocedures.Therefore,Gencosforwardcoal requirementsaredependentonthevolumeofpowersales thathavebeencontracted.Transportationcostsforcoalandnaturalgascanbeasignificantportionoffuelcosts.Ameren,AmerenMissouri andGencotypicallyhedgecoaltransportationforwardto providesupplycertaintyandtomitigatetransportationprice volatility.NaturalgastransportationexpensesforAmerens gasdistributionutilitycompaniesandforthegas-fired generationunitsofAmeren,AmerenMissouriandGenco areregulatedbyFERCthroughapprovedtariffsgoverning therates,terms,andconditionsoftransportationand storageservices.Certainfirmtransportationandstorage capacityagreementsheldbytheAmerenCompanies includerightstoextendthetermofcontracts.Depending onourcompetitiveposition,weareableinsomeinstances tonegotiatediscountstothesetariffratesforour
requirements.Inaddition,coaltransportationcostsaresensitivetothepriceofdieselfuelasaresultofrailfreightfuel surcharges.Weuseforwardfueloilcontracts(bothfor heatingandcrudeoil)tomitigatethismarketpriceriskas changesintheseproductsarehighlycorrelatedtochanges indieselmarkets.Ifdieselfuelcostsweretoincreaseor decreaseby$0.25agallon,Amerensfuelexpensecould increaseordecreaseby$14millionannually(Ameren Missouri-$8million,Genco-$5million).Asof December31,2011,Amerenhadapricecapfor approximately87%ofexpectedfuelsurchargesin2012.Intheeventofasignificantchangeincoalprices,Ameren,AmerenMissouriandGencowouldprobablytake actionstofurthermitigatetheirexposuretothismarket risk.However,duetotheuncertaintyofthespecificactions thatwouldbetakenandtheirpossibleeffects,thissensitivityanalysisassumesnochangeinourfinancialstructureorfuelsources.Withregardtoexposureforcommoditypriceriskfornuclearfuel,AmerenMissourihasfixed-priced,base-price-with-escalation,andmarket-pricedagreements.Ituses inventoriestoprovidesomepricehedgetofulfillits Callawayenergycentersneedsforuranium,conversion, andenrichment.Thereisnofuelreloadingorplanned maintenanceoutagescheduledfor2012and2015.Ameren Missourihaspricehedgesforapproximately74%ofits 2013to2016nuclearfuelrequirements.Nuclearfuelmarketpricesremainsubjecttoanunpredictablesupplyanddemandenvironment.Ameren Missourihascontinuedtofollowastrategyofmanagingits inventoryofnuclearfuelasaninherentpricehedge.New long-termuraniumcontractsarealmostexclusivelymarket-price-relatedwithanescalatingpricefloor.Newlong-term enrichmentcontractsusuallyhaveabase-price-with-escalationpricemechanism,andmayalsohaveeithera market-price-relatedcomponentormarket-basedprice re-benchmarking.AmerenMissouriexpectstoenterinto additionalcontractsfromtimetotimeinordertosupply nuclearfuelduringtheexpectedlifeoftheCallawayenergy center,atpricesthatcannotnowbeaccuratelypredicted.
Unliketheelectricityandnaturalgasmarkets,nuclearfuel marketshavesomewhatlimitedfinancialinstruments availableforpricehedging,somosthedgingisdone throughinventoriesandforwardcontracts,iftheyare
available.TheelectricgeneratingoperationsforAmeren,AmerenMissouriandGencoareexposedtochangesinmarket pricesfornaturalgasusedtorunCTs.Thenaturalgas procurementstrategyisdesignedtoensurereliableand immediatedeliveryofnaturalgaswhileminimizingcosts.Weoptimizetransportationandstorageoptionsandpriceriskbystructuringsupplyagreementstomaintainaccessto multiplegaspoolsandsupplybasins.Throughthemarketallocationandauctionprocess,AmerenandAmerenMissourihavebeengrantedFTRs associatedwiththeMISOEnergyandOperatingReserves Market.Inaddition,MarketingCompanyhasacquiredFTRs foritsparticipationinthePJM-NorthernIllinoisandMISO market.TheFTRsareintendedtomitigateelectric transmissioncongestionchargesrelatedtothephysical constraintsofthetransmissionsystem.Dependingonthe congestion,FTRscouldresultineitherchargesorcredits.
Complexgridmodelingtoolsareusedtodeterminewhich FTRstonominateintheFTRallocationprocess.Thereisa riskofincorrectlymodelingtheamountofFTRsneeded, andthereisthepotentialthattheFTRscouldbeineffective inmitigatingtransmissioncongestioncharges.WithregardtoAmerenMissourisandAmerenIllinoiselectricandnaturalgasdistributionbusinesses,exposureto changingmarketpricesisinlargepartmitigatedbythefact thattherearecostrecoverymechanismsinplace.These costrecoverymechanismsallowAmerenMissouriand AmerenIllinoistopassontoretailcustomersprudently 76 incurredcostsforfuel,purchasedpower,andgassupply.AmerenMissourisandAmerenIllinoisstrategyisdesigned toreducetheeffectofmarketfluctuationsfortheir regulatedcustomers.Theeffectsofpricevolatilitycannotbeeliminated.However,procurementstrategiesinvolveriskmanagementtechniquesandinstrumentssimilartothose outlinedearlier,aswellasthemanagementofphysical
assets.Thefollowingtablepresents,asofDecember31,2011,thepercentagesoftheprojectedrequiredsupplyofcoalandcoaltransportationforourcoal-firedenergycenters,nuclearfuelforAmerenMissourisCallawayenergycenter,naturalgasforour CTsandretaildistribution,asappropriate,andpurchasedpowerneedsofAmerenIllinois,whichdoesnotowngeneration,that areprice-hedgedovertheperiod2012through2016.Theprojectedrequiredsupplyofthesecommoditiescouldbe significantlyaffectedbychangesinourassumptionsforsuchmattersascustomerdemandforourelectricgenerationandour electricandnaturalgasdistributionservices,generationoutput,andinventorylevels,amongothermatters.201220132014-2016 Ameren (a): Coal (c)..........................................................................99%73%57%Coaltransportation (c)..............................................................1009888Nuclearfuel.....................................................................1009264Naturalgasforgeneration..........................................................201-Naturalgasfordistribution (b)........................................................873516PurchasedpowerforAmerenIllinois (d)................................................87524AmerenMissouri:
Coal...........................................................................100%98%90%Coaltransportation...............................................................1009797Nuclearfuel.....................................................................1009264Naturalgasforgeneration..........................................................123-Naturalgasfordistribution (b)........................................................902812AmerenIllinois:Naturalgasfordistribution (b)........................................................87%36%16%Purchasedpower (d)...............................................................87524 Genco: Coal (c)..........................................................................89%32%17%Coaltransportation (c)..............................................................10010071Naturalgasforgeneration..........................................................32--(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.(b)Representsthepercentageofnaturalgasprice-hedgedforpeakwinterseasonofNovemberthroughMarch.Theyear2012representsJanuary2012throughMarch2012.Theyear2013representsNovember2012throughMarch2013.Thiscontinueseachsuccessiveyearthrough March2016.(c)AmerensandGencospercentagesoftheprojectedrequiredsupplyofcoalandcoaltransportationhavebeenadjustedtoreflecttheceasingofoperationsattheMeredosiaandHutsonvilleenergycentersonDecember31,2011.(d)Representsthepercentageofpurchasedpowerprice-hedgedforfixed-priceresidentialandsmallcommercialcustomerswithlessthanonemegawattofdemand.Largercustomersarepurchasingpowerfromthecompetitivemarkets.Thefollowingtableshowshowourtotalfuelexpensemightincreaseandhowournetincomemightdecreaseifcoalandcoaltransportationcostsweretoincreaseby1%onanyrequirementsnotcurrentlycoveredbyfixed-pricecontractsforthe five-yearperiod2012through2016.CoalCoalTransportation Fuel Expense Net Income (a)Fuel Expense Net Income (a)Ameren (b)(c).................................................................$10$(6)$3$(2)AmerenMissouri (c)...........................................................(d)(d)(d)(d)
Genco.....................................................................8(5)3(2)(a)Calculationsarebasedonanestimatedtaxrateof40%,38%,and41%forAmeren,AmerenMissouriandGenco,respectively.(b)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.
(c)IncludestheimpactoftheFAC.
(d)Lessthan$1million.Withregardtoourexposureforcommoditypriceriskforconstructionandmaintenanceactivities,Amerenisexposedtochangesinmarketpricesformetalcommoditiesandtolaboravailability.SeeSupplyforElectricPowerunderPartI,Item1,ofthisreportforthepercentagesofourhistoricalneedssatisfiedbycoal,nuclearpower,naturalgas,hydroelectricpower,andoil.AlsoseeNote15-CommitmentsandContingenciesunderPartII,Item8,ofthisreportforadditionalinformation.
77 FairValueofContractsMostofourcommoditycontractsthatmeetthedefinitionofderivativesqualifyfortreatmentasNPNS.Weusederivativesprincipallytomanagetheriskofchangesinmarketpricesfornaturalgas,coal,diesel,power,anduranium.Thefollowing tablepresentsthefavorable(unfavorable)changesinthefairvalueofallderivativecontractsmarked-to-marketduringtheyear endedDecember31,2011.Weusevariousmethodstodeterminethefairvalueofourcontracts.Inaccordanceauthoritative accountingguidanceforfairvaluewithhierarchylevels,thesourcesweusedtodeterminethefairvalueofthesecontracts wereactivequotes(Level1),inputscorroboratedbymarketdata(Level2),andothermodelingandvaluationmethodsthatare notcorroboratedbymarketdata(Level3).SeeNote8-FairValueMeasurementsunderPartII,Item8,ofthisreportfor furtherinformationregardingthemethodsusedtodeterminethefairvalueofthesecontracts.
Ameren (a)Ameren Missouri AmerenIllinoisGencoOther (b)Fairvalueofcontractsatbeginningofyear,net...................................$(79)$11$(493)$19$384Contractsrealizedorotherwisesettledduringtheperiod............................31(11)272(12)(218)Changesinfairvaluesattributabletochangesinvaluationtechniqueandassumptions....-----Fairvalueofnewcontractsenteredintoduringtheperiod...........................2120(24)124Otherchangesinfairvalue
...................................................(16)(2)(62)246Fairvalueofcontractsoutstandingatendofyear,net..............................$(43)$18$(307)$10$236(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.(b)IncludesamountsforMerchantGenerationnonregistrantsubsidiariesandintercompanyeliminations.ThefollowingtablepresentsmaturitiesofderivativecontractsasofDecember31,2011,basedonthehierarchylevelsusedtodeterminethefairvalueofthecontracts:SourcesofFairValue MaturityLessThan1Year Maturity1-3Years Maturity4-5YearsMaturityinExcessof5Years TotalFairValue Ameren:Level1.....................................................$17$(3)$(1)$-$13Level2 (a)....................................................-----Level3 (b)....................................................(62)(80)(15)101(56)
Total.......................................................$(45)$(83)$(16)$101$(43)AmerenMissouri:Level1.....................................................$13$(4)$-$-$9Level2 (a)....................................................-----Level3 (b)....................................................14(4)(1)-9 Total.......................................................$27$(8)$(1)$-$18AmerenIllinois:Level1.....................................................$(7)$-$-$-$(7)Level2 (a)....................................................-----Level3 (b)....................................................(293)(94)(14)101(300)
Total.......................................................$(300)$(94)$(14)$101$(307)
Genco:Level1.....................................................$8$1$-$-$9Level2 (a)....................................................-----Level3 (b)....................................................-1--1 Total.......................................................$8$2$-$-$10(a)Principallyfixed-pricevs.floatingover-the-counterpowerswaps,powerforwards,andfixedpricevs.floatingover-the-counternaturalgas swaps.(b)PrincipallypowerforwardcontractvaluesbasedonaBlack-Scholesmodelthatincludesinformationfromexternalsourcesandourestimates.Level3alsoincludesoptioncontractvaluesbasedonourestimates.
78 ITEM8.FINANCIALSTATEMENTSANDSUPPLEMENTARYDATA.ReportofIndependentRegisteredPublicAccountingFirmTotheBoardofDirectorsandShareholdersofAmerenCorporation:Inouropinion,theconsolidatedfinancialstatementslistedintheindexappearingunderItem15(a)(1)presentfairly,inallmaterialrespects,thefinancialpositionofAmerenCorporationanditssubsidiariesatDecember31,2011and2010,andthe resultsoftheiroperationsandtheircashflowsforeachofthethreeyearsintheperiodendedDecember31,2011,in conformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.Also,inouropinion,theCompany maintained,inallmaterialrespects,effectiveinternalcontroloverfinancialreportingasofDecember31,2011,basedon criteriaestablishedinInternalControl-IntegratedFrameworkissuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO).TheCompanysmanagementisresponsibleforthesefinancialstatements,formaintaining effectiveinternalcontroloverfinancialreportingandforitsassessmentoftheeffectivenessofinternalcontroloverfinancial reporting,includedinManagementsReportonInternalControloverFinancialReportingappearingunderItem9A.Our responsibilityistoexpressopinionsonthesefinancialstatementsandontheCompanysinternalcontroloverfinancial reportingbasedonourintegratedaudits.WeconductedourauditsinaccordancewiththestandardsofthePublicCompany AccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanandperformtheauditstoobtainreasonable assuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatementandwhethereffectiveinternalcontrolover financialreportingwasmaintainedinallmaterialrespects.Ourauditsofthefinancialstatementsincludedexamining,onatest basis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements,assessingtheaccountingprinciplesused andsignificantestimatesmadebymanagement,andevaluatingtheoverallfinancialstatementpresentation.Ourauditof internalcontroloverfinancialreportingincludedobtaininganunderstandingofinternalcontroloverfinancialreporting, assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternal controlbasedontheassessedrisk.Ourauditsalsoincludedperformingsuchotherproceduresasweconsiderednecessaryin thecircumstances.Webelievethatourauditsprovideareasonablebasisforouropinions.Acompanysinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerally acceptedaccountingprinciples.Acompanysinternalcontroloverfinancialreportingincludesthosepoliciesandprocedures that(i)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsand dispositionsoftheassetsofthecompany;(ii)providereasonableassurancethattransactionsarerecordedasnecessaryto permitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsand expendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthe company;and(iii)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,or dispositionofthecompanysassetsthatcouldhaveamaterialeffectonthefinancialstatements.Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecomeinadequate becauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate./s/PricewaterhouseCoopersLLPPricewaterhouseCoopersLLPSt.Louis,Missouri February28,2012ReportofIndependentRegisteredPublicAccountingFirmTotheBoardofDirectorsandShareholdersofUnionElectricCompany:Inouropinion,thefinancialstatementslistedintheindexappearingunderItem15(a)(1)presentfairly,inallmaterialrespects,thefinancialpositionofUnionElectricCompanyatDecember31,2011and2010,andtheresultsofitsoperationsanditscash flowsforeachofthethreeyearsintheperiodendedDecember31,2011,inconformitywithaccountingprinciplesgenerally acceptedintheUnitedStatesofAmerica.ThesefinancialstatementsaretheresponsibilityoftheCompanysmanagement.Our responsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudits.Weconductedourauditsofthese statementsinaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates).Those standardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsand 79 disclosuresinthefinancialstatements,assessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,andevaluatingtheoverallfinancialstatementpresentation.Webelievethatourauditsprovideareasonablebasis forouropinion./s/PricewaterhouseCoopersLLPPricewaterhouseCoopersLLPSt.Louis,Missouri February28,2012ReportofIndependentRegisteredPublicAccountingFirmTotheBoardofDirectorsandShareholdersofAmerenIllinoisCompany:Inouropinion,theconsolidatedfinancialstatementslistedintheindexappearingunderItem15(a)(1)presentfairly,inallmaterialrespects,thefinancialpositionofAmerenIllinoisCompanyanditssubsidiariesatDecember31,2011and2010,and theresultsoftheiroperationsandtheircashflowsforeachofthethreeyearsintheperiodendedDecember31,2011,in conformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.Thesefinancialstatementsarethe responsibilityoftheCompanysmanagement.Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbased onouraudits.WeconductedourauditsofthesestatementsinaccordancewiththestandardsofthePublicCompany AccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonable assuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatest basis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements,assessingtheaccountingprinciplesused andsignificantestimatesmadebymanagement,andevaluatingtheoverallfinancialstatementpresentation.Webelievethat ourauditsprovideareasonablebasisforouropinion./s/PricewaterhouseCoopersLLPPricewaterhouseCoopersLLPSt.Louis,Missouri February28,2012ReportofIndependentRegisteredPublicAccountingFirmTotheBoardofDirectorsandShareholderofAmerenEnergyGeneratingCompany:Inouropinion,theconsolidatedfinancialstatementslistedintheindexappearingunderItem15(a)(1)presentfairly,inallmaterialrespects,thefinancialpositionofAmerenEnergyGeneratingCompanyanditssubsidiariesatDecember31,2011and 2010,andtheresultsoftheiroperationsandtheircashflowsforeachofthethreeyearsintheperiodendedDecember31, 2011,inconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.Thesefinancialstatements aretheresponsibilityoftheCompanysmanagement.Ourresponsibilityistoexpressanopiniononthesefinancialstatements basedonouraudits.WeconductedourauditsofthesestatementsinaccordancewiththestandardsofthePublicCompany AccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonable assuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatest basis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements,assessingtheaccountingprinciplesused andsignificantestimatesmadebymanagement,andevaluatingtheoverallfinancialstatementpresentation.Webelievethat ourauditsprovideareasonablebasisforouropinion./s/PricewaterhouseCoopersLLPPricewaterhouseCoopersLLPSt.Louis,Missouri February28,2012 80 PARTI.FINANCIALINFORMATIONITEM1.FINANCIALSTATEMENTS.AMERENCORPORATIONCONSOLIDATEDSTATEMENTOFINCOME(Inmillions,exceptpershareamounts)YearEndedDecember31, 2011 2010 2009OperatingRevenues:
Electric$6,530$6,521$5,940 Gas 1,0011,1171,195Totaloperatingrevenues 7,5317,6387,135OperatingExpenses:
Fuel 1,5671,3231,141Purchasedpower 9661,106909Gaspurchasedforresale 570669749Otheroperationsandmaintenance 1,8201,8211,768Goodwill,impairmentandothercharges 1255897Depreciationandamortization 785765725Taxesotherthanincometaxes 457449420Totaloperatingexpenses 6,2906,7225,719OperatingIncome1,2419161,416OtherIncomeandExpenses:Miscellaneousincome 699071Miscellaneousexpense 233323Totalotherincome 465748InterestCharges451497508IncomeBeforeIncomeTaxes836476956IncomeTaxes310325332NetIncome526151624Less:NetIncomeAttributabletoNoncontrollingInterests71212NetIncomeAttributabletoAmerenCorporation$519$139$612EarningsperCommonShare-BasicandDiluted$2.15$0.58$2.78DividendsperCommonShare$1.555$1.540$1.540AverageCommonSharesOutstanding241.5238.8220.4Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
81 AMERENCORPORATIONCONSOLIDATEDBALANCESHEET(Inmillions,exceptpershareamounts)December31, 2011 2010 ASSETSCurrentAssets:Cashandcashequivalents$255$545Accountsreceivable-trade(lessallowancefordoubtfulaccountsof$20and$23, respectively) 473 517Unbilledrevenue 324 406Miscellaneousaccountsandnotesreceivable 69 210Materialsandsupplies 712 707Mark-to-marketderivativeassets 115 129Currentregulatoryassets 215 267Othercurrentassets 132 109Totalcurrentassets 2,295 2,890PropertyandPlant,Net18,127 17,853InvestmentsandOtherAssets:Nucleardecommissioningtrustfund 357 337 Goodwill 411 411Intangibleassets 7 7Regulatoryassets 1,603 1,263Otherassets 845 750Totalinvestmentsandotherassets 3,223 2,768TOTALASSETS$23,645$23,511LIABILITIESANDEQUITYCurrentLiabilities:Currentmaturitiesoflong-termdebt$179$155Short-termdebt 148 269Accountsandwagespayable 693 651Taxesaccrued 65 63Interestaccrued 101 107Customerdeposits 98 100Mark-to-marketderivativeliabilities 161 161Currentregulatoryliabilities 133 99Othercurrentliabilities 207 283Totalcurrentliabilities 1,785 1,888CreditFacilityBorrowings-460Long-termDebt,Net6,677 6,853DeferredCreditsandOtherLiabilities:Accumulateddeferredincometaxes,net 3,315 2,882Accumulateddeferredinvestmenttaxcredits 79 90Regulatoryliabilities 1,502 1,319Assetretirementobligations 428 475Pensionandotherpostretirementbenefits 1,344 1,045Otherdeferredcreditsandliabilities 447 615Totaldeferredcreditsandotherliabilities 7,115 6,426CommitmentsandContingencies(Notes2,10,14and15)AmerenCorporationStockholdersEquity:Commonstock,$.01parvalue,400.0sharesauthorized-sharesoutstandingof242.6and240.4,respectively 2 2Otherpaid-incapital,principallypremiumoncommonstock 5,598 5,520Retainedearnings 2,369 2,225Accumulatedothercomprehensiveloss (50)(17)TotalAmerenCorporationstockholdersequity 7,919 7,730NoncontrollingInterests149 154Totalequity 8,068 7,884TOTALLIABILITIESANDEQUITY$23,645$23,511Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
82 AMERENCORPORATIONCONSOLIDATEDSTATEMENTOFCASHFLOWS(Inmillions)YearEndedDecember31, 2011 2010 2009CashFlowsFromOperatingActivities:Netincome$526$151$624Adjustmentstoreconcilenetincometonetcashprovidedbyoperating activities:
Goodwill,impairmentandothercharges 1255897Gainonsalesofproperties (15)(10)-Netmark-to-market(gain)lossonderivatives 11(15)(23)Depreciationandamortization 747746708Amortizationofnuclearfuel 615453Amortizationofdebtissuancecostsandpremium/discounts 212325Deferredincometaxesandinvestmenttaxcredits,net 346410290Allowanceforequityfundsusedduringconstruction (34)(52)(36)Other-21(24)Changesinassetsandliabilities:
Receivables 231(197)136Materialsandsupplies (27)7363Accountsandwagespayable (36)20(40)Taxesaccrued (3)101Assets,other 76(47)11Liabilities,other (75)7191Pensionandotherpostretirementbenefits (102)(5)(9)Counterpartycollateral,net 27(73)(17)TaumSaukinsurancerecoveries,netofcosts (1)54107Netcashprovidedbyoperatingactivities 1,8781,8231,967CashFlowsFromInvestingActivities:Capitalexpenditures (1,030)(1,042)(1,710)Nuclearfuelexpenditures (62)(68)(72)Purchasesofsecurities-nucleardecommissioningtrustfund (220)(271)(383)Salesofsecurities-nucleardecommissioningtrustfund 199256380Proceedsfromsalesofproperties 53272 Other 12 22Netcashusedininvestingactivities (1,048)(1,096)(1,781)CashFlowsFromFinancingActivities:Dividendsoncommonstock (375)(368)(338)Dividendspaidtononcontrollinginterestholders (6)(8)(21)Capitalissuancecosts
-(15)(65)Short-termdebtandcreditfacilityrepayments,net (581)(121)(324)Redemptions,repurchases,andmaturities:Long-termdebt (155)(310)(631)Preferredstock
-(52)-Issuances:Commonstock 6580634Long-termdebt
--1,021Repaymentsofgeneratoradvancesreceivedforconstruction (73)(39)-Generatoradvancesreceivedforconstruction 52968Netcashprovidedby(usedin)financingactivities (1,120)(804)344Netchangeincashandcashequivalents (290)(77)530Cashandcashequivalentsatbeginningofyear 54562292Cashandcashequivalentsatendofyear$255$545$622CashPaid(Refunded)DuringtheYear:Interest(netof$30,$34,and$40capitalized,respectively)$453$494$485Incometaxes,net (61)(92)9Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
83 AMERENCORPORATIONCONSOLIDATEDSTATEMENTOFSTOCKHOLDERSEQUITY(Inmillions)December31, 2011 2010 2009CommonStock:Beginningofyear
$2$2$2Sharesissued
---Commonstock,endofyear 2 22OtherPaid-inCapital:Beginningofyear 5,5205,4124,780Sharesissued(lessissuancecostsof$-,$-,and$17,respectively) 6580617Stock-basedcompensationactivity 131415Regulatoryrecoveryofprior-periodcommonstockissuancecosts Otherpaid-incapital,endofyear 5,5985,5205,412RetainedEarnings:Beginningofyear 2,2252,4552,181NetincomeattributabletoAmerenCorporation 519139612 Dividends (375)(368)(338)
Other-(1)-Retainedearnings,endofyear 2,3692,2252,455AccumulatedOtherComprehensiveIncome(Loss):Derivativefinancialinstruments,beginningofyear
-1048Changeinderivativefinancialinstruments 7(10)(38)Derivativefinancialinstruments,endofyear 7-10Deferredretirementbenefitcosts,beginningofyear (17)(23)(43)Changeindeferredretirementbenefitcosts (40)620Deferredretirementbenefitcosts,endofyear (57)(17)(23)Totalaccumulatedothercomprehensiveloss,endofyear (50)(17)(13)TotalAmerenCorporationStockholdersEquity$7,919$7,730$7,856NoncontrollingInterests:Beginningofyear 154204211Netincomeattributabletononcontrollinginterestholders 71212Dividendspaidtononcontrollinginterestholders (6)(8)(21)Redemptionsofpreferredstock
-(52)-Other (6)(2)2Noncontrollinginterests,endofyear 149154204TotalEquity$8,068$7,884$8,060ComprehensiveIncome,NetofTaxes:Netincome$526$151$624Unrealizednetgain(loss)onderivativehedginginstruments,netofincometaxes(benefit)of$1,$(1),and$78,respectively 3(2)103Reclassificationadjustmentsforderivative(gains)lossesincludedinnetincome,netofincometaxes(benefit)of$(3),$5,and$82,respectively 4(8)(112)ReclassificationadjustmentduetoimplementationofFAC,netofincometaxesof$-,$-,and$18,respectively
--(29)Pensionandotherpostretirementactivity,netofincometaxes(benefit)of$(32),$6,and$22,respectively (46)422TotalComprehensiveIncome,NetofTaxes$487$145$608Comprehensiveincomeattributabletononcontrollinginterests 11014TotalComprehensiveIncomeAttributabletoAmerenCorporation,NetofTaxes$486$135$594Commonstocksharesatbeginningofyear 240.4237.4212.3Sharesissued 2.23.025.1Commonstocksharesatendofyear 242.6240.4237.4Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
84 UNIONELECTRICCOMPANYSTATEMENTOFINCOME(Inmillions)YearEndedDecember31, 2011 2010 2009OperatingRevenues:
Electric$3,222$3,030$2,700 Gas 156166170 Other 5 14Totaloperatingrevenues 3,3833,1972,874OperatingExpenses:
Fuel 866635593Purchasedpower 104162124Gaspurchasedforresale 779197Otheroperationsandmaintenance 934931880Lossfromregulatorydisallowance 89--Depreciationandamortization 408382357Taxesotherthanincometaxes 296285257Totaloperatingexpenses 2,7742,4862,308OperatingIncome609711566OtherIncomeandExpenses:Miscellaneousincome 618363Miscellaneousexpense 10137Totalotherincome 517056InterestCharges209213229IncomeBeforeIncomeTaxes451568393IncomeTaxes161199128NetIncome290369265PreferredStockDividends3 56NetIncomeAvailabletoCommonStockholder$287$364$259TheaccompanyingnotesastheyrelatetoAmerenMissouriareanintegralpartofthesefinancialstatements.
85 UNIONELECTRICCOMPANYBALANCESHEET(Inmillions,exceptpershareamounts)December31, 2011 2010 ASSETSCurrentAssets:Cashandcashequivalents$201$202Accountsreceivable-trade(lessallowancefordoubtfulaccountsof$7and$8, respectively) 212 217Accountsreceivable-affiliates 1 6Unbilledrevenue 139 159Miscellaneousaccountsandnotesreceivable 42 116Materialsandsupplies 348 341Currentregulatoryassets 109 179Othercurrentassets 82 55Totalcurrentassets 1,134 1,275PropertyandPlant,Net9,958 9,775InvestmentsandOtherAssets:Nucleardecommissioningtrustfund 357 337Intangibleassets 7 2Regulatoryassets 855 694Otherassets 446 421Totalinvestmentsandotherassets 1,665 1,454TOTALASSETS$12,757$12,504LIABILITIESANDSTOCKHOLDERSEQUITYCurrentLiabilities:Currentmaturitiesoflong-termdebt$178$5Accountsandwagespayable 414 326Accountspayable-affiliates 73 75Taxesaccrued 74 76Interestaccrued 62 63Currentregulatoryliabilities 57 23Currentaccumulateddeferredincometaxes,net
-43Othercurrentliabilities 84 89Totalcurrentliabilities 942 700Long-termDebt,Net3,772 3,949DeferredCreditsandOtherLiabilities:Accumulateddeferredincometaxes,net 2,132 1,908Accumulateddeferredinvestmenttaxcredits 70 78Regulatoryliabilities 836 766Assetretirementobligations 328 363Pensionandotherpostretirementbenefits 491 369Otherdeferredcreditsandliabilities 149 218Totaldeferredcreditsandotherliabilities 4,006 3,702CommitmentsandContingencies(Notes2,10,14and15)StockholdersEquity:Commonstock,$5parvalue,150.0sharesauthorized-102.1sharesoutstanding 511 511Otherpaid-incapital,principallypremiumoncommonstock 1,555 1,555Preferredstocknotsubjecttomandatoryredemption 80 80Retainedearnings 1,891 2,007Totalstockholdersequity 4,037 4,153TOTALLIABILITIESANDSTOCKHOLDERSEQUITY$12,757$12,504TheaccompanyingnotesastheyrelatetoAmerenMissouriareanintegralpartofthesefinancialstatements.
86 UNIONELECTRICCOMPANYSTATEMENTOFCASHFLOWS(Inmillions)YearEndedDecember31, 2011 2010 2009CashFlowsFromOperatingActivities:Netincome$290$369$265Adjustmentstoreconcilenetincometonetcashprovidedbyoperating activities:
Lossfromregulatorydisallowance 89--Gainonsaleofproperties (3)(5)-Netmark-to-market(gain)lossonderivatives 1(1)(29)Depreciationandamortization 377355333Amortizationofnuclearfuel 615453Amortizationofdebtissuancecostsandpremium/discounts 6410Deferredincometaxesandinvestmenttaxcredits,net 155292212Allowanceforequityfundsusedduringconstruction (30)(50)(33)Other (6)10-Changesinassetsandliabilities:
Receivables 66(122)7Materialsandsupplies (7)7(2)Accountsandwagespayable 13(24)18Taxesaccrued (6)551Assets,other 79(101)(34)Liabilities,other (30)7569Pensionandotherpostretirementbenefits 2(3)(2)TaumSaukinsurancerecoveries,netofcosts (1)54107Netcashprovidedbyoperatingactivities 1,056969975CashFlowsFromInvestingActivities:Capitalexpenditures (550)(624)(882)Nuclearfuelexpenditures (62)(68)(72)Purchasesofsecurities-nucleardecommissioningtrustfund (220)(271)(383)Salesofsecurities-nucleardecommissioningtrustfund 199256380 Other 6 7-Netcashusedininvestingactivities (627)(700)(957)CashFlowsFromFinancingActivities:Dividendsoncommonstock (403)(235)(175)Dividendsonpreferredstock (3)(5)(6)Capitalissuancecosts
-(4)(14)Short-termdebt,net
--(251)Intercompanynotepayable-Ameren,net
--(92)Redemptions,repurchases,andmaturities:Long-termdebt (5)(70)(4)Preferredstock
-(33)-Issuancesoflong-termdebt
--349Capitalcontributionfromparent
--436Generatoradvancesforconstructionreceived(refunded)
(19)136Netcashprovidedby(usedin)financingactivities (430)(334)249Netchangeincashandcashequivalents (1)(65)267Cashandcashequivalentsatbeginningofyear 202267-Cashandcashequivalentsatendofyear$201$202$267CashPaid(Refunded)DuringtheYear:Interest(netof$25,$26,and$23capitalized,respectively)$210$213$212Incometaxes,net 9(106)(208)TheaccompanyingnotesastheyrelatetoAmerenMissouriareanintegralpartofthesefinancialstatements.
87 UNIONELECTRICCOMPANYSTATEMENTOFSTOCKHOLDERSEQUITY(Inmillions)December31, 2011 2010 2009CommonStock$511$511$511OtherPaid-inCapital:Beginningofyear 1,5551,5551,119Capitalcontributionfromparent
--436Otherpaid-incapital,endofyear 1,5551,5551,555PreferredStockNotSubjecttoMandatoryRedemption:Beginningbalance 80113113 Redemptions
-(33)-Preferredstocknotsubjecttomandatoryredemption,endofyear 8080113RetainedEarnings:Beginningofyear 2,0071,8781,794Netincome 290369265Commonstockdividends (403)(235)(175)Preferredstockdividends (3)(5)(6)Retainedearnings,endofyear 1,8912,0071,878AccumulatedOtherComprehensiveIncome:Beginningofyear
--25Changeinderivativefinancialinstruments
--(25)Accumulatedothercomprehensiveincome,endofyear
---TotalStockholdersEquity$4,037$4,153$4,057ComprehensiveIncome,NetofTaxes:Netincome$290$369$265Unrealizednetgainonderivativehedginginstruments,netofincometaxesof$-,$-,and$11,respectively
--17Reclassificationadjustmentsforderivative(gains)includedinnetincome,netofincometaxesof$-,$-,and$8,respectively
--(13)ReclassificationadjustmentduetoimplementationofFAC,netofincometaxesof$-,$-,and$18,respectively
--(29)TotalComprehensiveIncome,NetofTaxes$290$369$240TheaccompanyingnotesastheyrelatetoAmerenMissouriareanintegralpartofthesefinancialstatements.
88 AMERENILLINOISCOMPANYCONSOLIDATEDSTATEMENTOFINCOME(Inmillions)YearEndedDecember31, 2011 2010 2009 (a)OperatingRevenues:
Electric$1,940$2,061$1,965 Gas 8469531,015 Other 1-4Totaloperatingrevenues 2,7873,0142,984OperatingExpenses:Purchasedpower 8539651,048Gaspurchasedforresale 492578642Otheroperationsandmaintenance 640635590Depreciationandamortization 215210216Taxesotherthanincometaxes 129128125Totaloperatingexpenses 2,3292,5162,621OperatingIncome458498363OtherIncomeandExpenses:Miscellaneousincome 7712Miscellaneousexpense 61310Totalotherincome(expense) 1(6)2InterestCharges136143153IncomeBeforeIncomeTaxes323349212IncomeTaxes12713779IncomefromContinuingOperations196212133IncomefromDiscontinuedOperations,netoftax-40114NetIncome196252247PreferredStockDividends3 46NetIncomeAvailabletoCommonStockholder$193$248$241(a)PriorperiodhasbeenadjustedtoreflecttheAmerenIllinoisMergerasdiscussedinNote1-SummaryofSignificantAccountingPolicies.TheaccompanyingnotesastheyrelatetoAmerenIllinoisareanintegralpartoftheseconsolidatedfinancialstatements.
89 AMERENILLINOISCOMPANYCONSOLIDATEDBALANCESHEET(Inmillions)December31, 2011 2010 ASSETSCurrentAssets:Cashandcashequivalents$21$322Accountsreceivable-trade(lessallowancefordoubtfulaccountsof$13and$13, respectively) 201 230Accountsreceivable-affiliates 15 73Unbilledrevenue 146 205Miscellaneousaccountsreceivable 6 44Materialsandsupplies 199 198Currentregulatoryassets 306 260Currentaccumulateddeferredincometaxes,net 58 43Othercurrentassets 65 63Totalcurrentassets 1,017 1,438PropertyandPlant,Net4,770 4,576InvestmentsandOtherAssets:Intercompanytaxreceivable-Genco 56 72 Goodwill 411 411Regulatoryassets 748 747Otherassets 211 162Totalinvestmentsandotherassets 1,426 1,392TOTALASSETS$7,213$7,406LIABILITIESANDSTOCKHOLDERSEQUITYCurrentLiabilities:Currentmaturitiesoflong-termdebt
$1$150Accountsandwagespayable 133 182Accountspayable-affiliates 103 82Taxesaccrued 15 26Customerdeposits 76 83Mark-to-marketderivativeliabilities 99 82Mark-to-marketderivativeliabilities-affiliates 200 172Environmentalremediation 63 72Currentregulatoryliabilities 76 76Othercurrentliabilities 92 90Totalcurrentliabilities 858 1,015Long-termDebt,Net1,657 1,657DeferredCreditsandOtherLiabilities:Accumulateddeferredincometaxes,net 895 724Accumulateddeferredinvestmenttaxcredits 7 8Regulatoryliabilities 666 553Pensionandotherpostretirementbenefits 495 413Otherdeferredcreditsandliabilities 183 460Totaldeferredcreditsandotherliabilities 2,246 2,158CommitmentsandContingencies(Notes2,14and15)StockholdersEquity:Commonstock,noparvalue,45.0sharesauthorized-25.5sharesoutstanding
--Otherpaid-incapital 1,965 1,952Preferredstocknotsubjecttomandatoryredemption 62 62Retainedearnings 408 542Accumulatedothercomprehensiveincome 17 20Totalstockholdersequity 2,452 2,576TOTALLIABILITIESANDSTOCKHOLDERSEQUITY$7,213$7,406TheaccompanyingnotesastheyrelatetoAmerenIllinoisareanintegralpartoftheseconsolidatedfinancialstatements.
90 AMERENILLINOISCOMPANYCONSOLIDATEDSTATEMENTOFCASHFLOWS(Inmillions)YearEndedDecember31, 2011 2010 2009 (a)CashFlowsFromOperatingActivities:Netincome$196$252$247Incomefromdiscontinuedoperations,netoftax
-(40)(114)Adjustmentstoreconcilenetincometonetcashprovidedbyoperating activities:
Depreciationandamortization 206201195Amortizationofdebtissuancecostsandpremium/discounts 8109Deferredincometaxesandinvestmenttaxcredits,net 15521023 Other (14)(3)(40)Changesinassetsandliabilities:
Receivables 146(84)187Materialsandsupplies (21)981Accountsandwagespayable (46)(44)(3)Taxesaccrued (12)11(11)Assets,other (3)3227Liabilities,other (30)336Pensionandotherpostretirementbenefits (101)(7)5Counterpartycollateral,net 20(100)92Operatingcashflowsprovidedbydiscontinuedoperations
-113141Netcashprovidedbyoperatingactivities 504593845CashFlowsFromInvestingActivities:Capitalexpenditures (351)(281)(352)Returnsfrom(advancesto)ATXIforconstruction 49(10)(47)Proceedsfromintercompanynotereceivable-Genco
-4542 Other 6 56Capitalexpendituresofdiscontinuedoperations
-(6)(91)Netcashusedininvestingactivities (296)(247)(442)CashFlowsFromFinancingActivities:Dividendsoncommonstock (327)(133)(98)Dividendsonpreferredstock (3)(4)(6)Capitalissuancecosts
-(4)(13)Short-termdebtandcreditfacilityrepayments
--(62)Redemptions,repurchases,andmaturities:Long-termdebt (150)(40)(250)Preferredstock
-(19)-Repaymentsofgeneratoradvancesreceivedforconstruction (53)(39)(2)Generatoradvancesreceivedforconstruction 51662Capitalcontributionfromparent 19-272Netfinancingactivitiesusedindiscontinuedoperations
-(107)(50)Netcashusedinfinancingactivities (509)(330)(147)Netchangeincashandcashequivalents (301)16256Cashandcashequivalentsatbeginningofyear 32230650Cashandcashequivalentsatendofyear$21$322$306CashPaid(Refunded)DuringtheYear:Interest(netof$2,$1,and$3capitalized,respectively)$137$160$167Incometaxes,net (14)(39)129Noncashinvestingactivity-assettransferfromATXI-729Noncashfinancingactivity-capitalcontributionfromparent-6-(a)PriorperiodhasbeenadjustedtoreflecttheAmerenIllinoisMergerasdiscussedinNote1-SummaryofSignificantAccountingPolicies.TheaccompanyingnotesastheyrelatetoAmerenIllinoisareanintegralpartoftheseconsolidatedfinancialstatements.
91 AMERENILLINOISCOMPANYCONSOLIDATEDSTATEMENTOFSTOCKHOLDERSEQUITY(Inmillions)December31, 2011 2010 2009 (a)CommonStock$-$-$-OtherPaid-inCapital:Beginningofyear 1,9522,2231,951Capitalcontributionfromparent 136272ContributionofAmerenownedpreferredstockwithoutconsideration TransferofAERGtoparent(Notes1and16)
-(310)-Otherpaid-incapital,endofyear 1,9651,9522,223PreferredStockNotSubjecttoMandatoryRedemption:Beginningbalance 62115115 Redemptions
-(19)-ContributionofAmerenownedpreferredstockwithoutconsideration
-(33)-Other-(1)-Preferredstocknotsubjecttomandatoryredemption,endofyear 6262115RetainedEarnings:Beginningofyear 542709566Netincome 196252247Commonstockdividends (327)(133)(98)Preferredstockdividends (3)(4)(6)TransferofAERGtoparent(Notes1and16)
-(281)-Other-(1)-Retainedearnings,endofyear 408542709AccumulatedOtherComprehensiveIncome:Deferredretirementbenefitcosts,beginningofyear 202523Changeindeferredretirementbenefitcosts (3)(4)(4)Changeinaccumulatedothercomprehensiveincomefromdiscontinued operations
-(1)6Deferredretirementbenefitcosts,endofyear 172025Totalaccumulatedothercomprehensiveincome,endofyear 172025TotalStockholdersEquity$2,452$2,576$3,072ComprehensiveIncome,NetofTaxes:Netincome$196$252$247Pensionandotherpostretirementactivity,netofincometaxes(benefit)of$(2),$(2),and$(2),respectively (3)(4)(4)Othercomprehensiveincomefromdiscontinuedoperations
-(1)6TotalComprehensiveIncome,NetofTaxes$193$247$249(a)PriorperiodhasbeenadjustedtoreflecttheAmerenIllinoisMergerasdiscussedinNote1-SummaryofSignificantAccountingPolicies.TheaccompanyingnotesastheyrelatetoAmerenIllinoisareanintegralpartoftheseconsolidatedfinancialstatements.
92 AMERENENERGYGENERATINGCOMPANYCONSOLIDATEDSTATEMENTOFINCOME(LOSS)(Inmillions)YearEndedDecember31, 2011 2010 2009 (a)OperatingRevenues$1,066$1,126$1,148OperatingExpenses:
Fuel 541522415Purchasedpower 556172Otheroperationsandmaintenance 179191226Goodwill,impairmentandothercharges 351706Depreciationandamortization 969881Taxesotherthanincometaxes 212224Totaloperatingexpenses 9271,064824OperatingIncome13962324OtherIncomeandExpenses:Miscellaneousincome 1 11Miscellaneousexpense
-11Totalotherincome 1--InterestCharges637861Income(Loss)BeforeIncomeTaxes77(16)263IncomeTaxes3220101NetIncome(Loss)45(36)162Less:NetIncomeAttributabletoNoncontrollingInterest1 32NetIncome(Loss)AttributabletoAmerenEnergyGeneratingCompany$44$(39)$160(a)PriorperiodhasbeenadjustedtoincludeEEIasdiscussedinNote1-SummaryofSignificantAccountingPolicies.TheaccompanyingnotesastheyrelatetoGencoareanintegralpartoftheseconsolidatedfinancialstatements.
93 AMERENENERGYGENERATINGCOMPANYCONSOLIDATEDBALANCESHEET(Inmillions,exceptshares)December31, 2011 2010 ASSETSCurrentAssets:Cashandcashequivalents
$8$6Advancestomoneypool 74 25Accountsreceivable-affiliates 89 126Miscellaneousaccountsreceivable 13 15Materialsandsupplies 122 130Mark-to-marketderivativeassets 12 26Othercurrentassets 7 4Totalcurrentassets 325 332PropertyandPlant,Net2,231 2,248InvestmentsandOtherAssets:Intangibleassets
-3Otherassets 16 24Totalinvestmentsandotherassets 16 27TOTALASSETS$2,572$2,607LIABILITIESANDEQUITYCurrentLiabilities:Accountsandwagespayable$71$62Accountspayable-affiliates 13 23Currentportionoftaxpayable-AmerenIllinois 8 8Taxesaccrued 20 20Interestaccrued 13 13Mark-to-marketderivativeliabilities 3 9Mark-to-marketderivativeliabilities-affiliates
-5Currentaccumulateddeferredincometaxes,net
-13Othercurrentliabilities 14 12Totalcurrentliabilities 142 165CreditFacilityBorrowings-100Long-termDebt,Net 824 824DeferredCreditsandOtherLiabilities:Accumulateddeferredincometaxes,net 304 249Accumulateddeferredinvestmenttaxcredits 2 3Taxpayable-AmerenIllinois 56 72Assetretirementobligations 66 74Pensionandotherpostretirementbenefits 141 88Otherdeferredcreditsandliabilities 12 23Totaldeferredcreditsandotherliabilities 581 509CommitmentsandContingencies(Notes2,14and15)AmerenEnergyGeneratingCompanyStockholdersEquity:Commonstock,noparvalue,10,000sharesauthorized-2,000sharesoutstanding
--Otherpaid-incapital 653 649Retainedearnings 437 393Accumulatedothercomprehensiveloss (72)(44)TotalAmerenEnergyGeneratingCompanystockholdersequity 1,018 998NoncontrollingInterest 7 11Totalequity 1,025 1,009TOTALLIABILITIESANDEQUITY$2,572$2,607TheaccompanyingnotesastheyrelatetoGencoareanintegralpartoftheseconsolidatedfinancialstatements.
94 AMERENENERGYGENERATINGCOMPANYCONSOLIDATEDSTATEMENTOFCASHFLOWS(Inmillions)YearEndedDecember31, 2011 2010 2009 (a)CashFlowsFromOperatingActivities:Netincome(loss)$45$(36)$162Adjustmentstoreconcilenetincome(loss)tonetcashprovidedbyoperating activities:
Goodwill,impairmentandothercharges 351706Gainonsalesofproperties (12)(5)-Netmark-to-market(gain)lossonderivatives 2(8)(27)Depreciationandamortization 98113106Amortizationofdebtissuancecostsandpremium/discounts 3 32Deferredincometaxesandinvestmenttaxcredits,net 641564 Other 1 6-Changesinassetsandliabilities:
Receivables 1938(13)Materialsandsupplies 542(12)Accountsandwagespayable (15)(25)(19)Taxesaccrued Assets,other 2 79Liabilities,other (30)(24)(26)Pensionandotherpostretirementbenefits (2)51Netcashprovidedbyoperatingactivities 215304253CashFlowsFromInvestingActivities:Capitalexpenditures (141)(95)(316)Proceedsfromsalesofproperties 4918-Moneypooladvances,net (49)48(73)Netcashusedininvestingactivities (141)(29)(389)CashFlowsFromFinancingActivities:Dividendsoncommonstock
--(43)Dividendspaidtononcontrollinginterestholder
--(11)Capitalissuancecosts
-(4)(7)Creditfacilityrepayments,net (100)100-Moneypoolborrowings,net
--(80)Redemptionsoflong-termdebt
-(200)-Issuancesoflong-termdebt
--249Notespayable-affiliates
-(176)31Capitalcontributionfromparent 28 5-Netcashprovidedby(usedin)financingactivities (72)(275)139Netchangeincashandcashequivalents 2-3Cashandcashequivalentsatbeginningofyear 6 63Cashandcashequivalentsatendofyear
$8$6$6CashPaid(Refunded)DuringtheYear:Interest(netof$3,$6,and$12capitalized,respectively)$60$77$58Incometaxes,net (25)174Noncashfinancingactivity-capitalcontributionfromparent-24-(a)PriorperiodhasbeenadjustedtoincludeEEIasdiscussedinNote1-SummaryofSignificantAccountingPolicies.TheaccompanyingnotesastheyrelatetoGencoareanintegralpartoftheseconsolidatedfinancialstatements.
95 AMERENENERGYGENERATINGCOMPANYCONSOLIDATEDSTATEMENTOFSTOCKHOLDERSEQUITY(Inmillions)December31, 2011 2010 2009 (a)CommonStock$-$-$-OtherPaid-inCapital:Beginningofyear 649620620Capitalcontributionfromparent 429-Otherpaid-incapital,endofyear 653649620RetainedEarnings:Beginningofyear 393432315Netincome(loss)attributabletoAmerenEnergyGeneratingCompany 44(39)160Commonstockdividends
--(43)Retainedearnings,endofyear 437393432AccumulatedOtherComprehensiveLoss:Derivativefinancialinstruments,beginningofyear (6)(6)(6)Changeinderivativefinancialinstruments 1--Derivativefinancialinstruments,endofyear (5)(6)(6)Deferredretirementbenefitcosts,beginningofyear (38)(42)(61)Changeindeferredretirementbenefitcosts (29)419Deferredretirementbenefitcosts,endofyear (67)(38)(42)Totalaccumulatedothercomprehensiveloss,endofyear (72)(44)(48)TotalAmerenEnergyGeneratingCompanyStockholdersEquity$1,018$998$1,004NoncontrollingInterest:Beginningofyear 11916Netincomeattributabletononcontrollinginterestholder 1 32Dividendspaidtononcontrollinginterestholder
--(11)Othercomprehensiveincome(loss)attributabletononcontrollinginterestholder (5)(1)2Noncontrollinginterest,endofyear 7119TotalEquity$1,025$1,009$1,013ComprehensiveIncome(Loss),NetofTaxes:Netincome(loss)$45$(36)$162Reclassificationadjustmentsforderivativegainsincludedinnetincome,netofincometaxesof$-,$-,and$-,respectively 1--Pensionandotherpostretirementactivity,netofincometaxes(benefit)of$(24),$5,and$12,respectively (34)321TotalComprehensiveIncome(Loss),NetofTaxes$12$(33)$183Comprehensiveincome(loss)attributabletononcontrollinginterestholder (4)24TotalComprehensiveIncome(Loss)AttributabletoAmerenEnergyGeneratingCompany,NetofTaxes$16$(35)$179(a)PriorperiodhasbeenadjustedtoincludeEEIasdiscussedinNote1-SummaryofSignificantAccountingPolicies.TheaccompanyingnotesastheyrelatetoGencoareanintegralpartoftheseconsolidatedfinancialstatements.
96 AMERENCORPORATION(Consolidated)UNIONELECTRICCOMPANY AMERENILLINOISCOMPANY(Consolidated)
AMERENENERGYGENERATINGCOMPANY (Consolidated)COMBINEDNOTESTOFINANCIALSTATEMENTSDecember31,2011NOTE1-
SUMMARY
OFSIGNIFICANTACCOUNTING POLICIES GeneralAmeren,headquarteredinSt.Louis,Missouri,isapublicutilityholdingcompanyunderPUHCA2005, administeredbyFERC.Amerensprimaryassetsarethe commonstockofitssubsidiaries.Amerenssubsidiaries areseparate,independentlegalentitieswithseparate businesses,assets,andliabilities.Thesesubsidiaries operate,asthecasemaybe,rate-regulatedelectric generation,transmissionanddistributionbusinesses,rate-regulatednaturalgastransmissionanddistribution businesses,andmerchantelectricgenerationbusinessesin MissouriandIllinois.DividendsonAmerenscommon stockandthepaymentofotherexpensesbyAmeren dependondistributionsmadetoitbyitssubsidiaries.
Amerensprincipalsubsidiariesarelistedbelow.Alsosee theGlossaryofTermsandAbbreviationsatthefrontofthis
report.UnionElectricCompany,orAmerenMissouri,operatesarate-regulatedelectricgeneration,transmissionand distributionbusiness,andarate-regulatednaturalgas transmissionanddistributionbusinessinMissouri.
AmerenMissouriwasincorporatedinMissouriin1922 andissuccessortoanumberofcompanies,theoldest ofwhichwasorganizedin1881.Itisthelargestelectric utilityinthestateofMissouri.Itsupplieselectricand naturalgasservicetoa24,000-square-mileareain centralandeasternMissouri.Thisareahasan estimatedpopulationof2.9millionandincludesthe GreaterSt.Louisarea.AmerenMissourisupplies electricserviceto1.2millioncustomersandnatural gasserviceto127,000customers.
AmerenIllinoisCompany,orAmerenIllinois,operatesarate-regulatedelectricandnaturalgastransmissionand distributionbusinessinIllinois.AmerenIllinoiswas createdbythemergerofCILCOandIPwithandinto CIPS.CIPSwasincorporatedinIllinoisin1923andis successortoanumberofcompanies,theoldestof whichwasorganizedin1902.AmerenIllinoissupplies electricandnaturalgasutilityservicetoportionsof centralandsouthernIllinoishavinganestimated populationof3.1millioninanareaof40,000square miles.AmerenIllinoissupplieselectricserviceto 1.2millioncustomersandnaturalgasserviceto 809,000customers.
AERconsistsofnon-rate-regulatedoperations,includingGenco,AERG,MarketingCompanyand MedinaValley.TheMedinaValleyenergycenterwas soldinFebruary2012.GencooperatesamerchantelectricgenerationbusinessinIllinoisandholdsan80%ownershipinterestinEEI,whichitconsolidates forfinancialreportingpurposes.Gencowas incorporatedinIllinoisinMarch2000.Gencoscoal andnaturalgaselectricgeneratingfacilitiesare expectedtohavecapacityof3,095and1,348 megawatts,respectively,atthetimeofthe2012peak summerelectricaldemand.Amerenhasvariousothersubsidiariesresponsibleforactivitiessuchastheprovisionofsharedservices.OnOctober1,2010,Ameren,CIPS,CILCO,IP,AERGandAERcompletedatwo-stepcorporateinternal reorganization.Thefirststepofthereorganizationwasthe AmerenIllinoisMerger.UponconsummationoftheAmeren IllinoisMerger,theseparatelegalexistenceofCILCOandIP ended.Thesecondstepofthereorganizationinvolvedthe distributionofAERGstockfromAmerenIllinoistoAmeren andthesubsequentcontributionbyAmerenoftheAERG stocktoAER.TheAmerenIllinoisMergerandthe distributionofAERGstockwereaccountedforas transactionsbetweenentitiesundercommoncontrol.In accordancewithauthoritativeaccountingguidance,assets andliabilitiestransferredbetweenentitiesundercommon controlwereaccountedforatthehistoricalcostbasisofthe commonparent,Ameren,asifthetransferhadoccurredat thebeginningoftheearliestreportingperiodpresented.
AmerenshistoricalcostbasisinAmerenIllinoisincluded purchaseaccountingadjustmentsrelatedtoAmerens acquisitionofCILCORPin2003.AmerenIllinoisaccounted fortheAERGdistributionasaspinoff.AmerenIllinois transferredAERGtoAmerenbasedonAERGscarrying value.AmerenIllinoishassegregatedAERGsoperating resultsandcashflowsandpresentedthemseparatelyas discontinuedoperationsinitsconsolidatedstatementof incomeandconsolidatedstatementofcashflows, respectively,forallperiodspresentedpriortoOctober1, 2010,inthisreport.ForAmerensfinancialstatements, AERGsresultsofoperationsremainclassifiedas continuingoperations.SeeNote16-Corporate ReorganizationandDiscontinuedOperationsforadditional
information.EffectiveJanuary1,2010,aspartofaninternalreorganization,AERtransferredits80%stockownership interestinEEItoGencothroughacapitalcontribution.The transferofEEItoGencowasaccountedforasatransaction betweenentitiesundercommoncontrol,wherebyGenco accountedforthetransferatthehistoricalcarryingvalueof theparent(Ameren)asifthetransferhadoccurredatthe beginningoftheearliestreportingperiodpresented.
AmerenshistoricalcostbasisinEEIincludedpurchase accountingadjustmentsrelatingtoAmerensacquisitionof anadditional20%ownershipinterestinEEIin2004.This transferrequiredGencosprior-periodfinancialstatements toberetrospectivelycombinedforallperiodspresented.
Consequently,Gencosprior-periodconsolidatedfinancial statementsreflectEEIasifithadbeenasubsidiaryof Genco.AmerenandGencoconsolidateEEIforfinancial reportingpurposes.
97 ThefinancialstatementsofAmeren,AmerenIllinoisandGencoarepreparedonaconsolidatedbasis.Ameren Missourihasnosubsidiaries,andthereforeitsfinancial statementswerenotpreparedonaconsolidatedbasis.All significantintercompanytransactionshavebeeneliminated.
Alltabulardollaramountsareinmillions,unlessotherwise
indicated.OuraccountingpoliciesconformtoGAAP.Ourfinancialstatementsreflectalladjustments(whichinclude normal,recurringadjustments)thatarenecessary,inour opinion,forafairpresentationofourresults.The preparationoffinancialstatementsinconformitywithGAAP requiresthatAmerenmanagementmakecertainestimates andassumptions.Suchestimatesandassumptionsaffect reportedamountsofassetsandliabilities,thedisclosureof contingentassetsandliabilitiesatthedatesoffinancial statements,andthereportedamountsofrevenuesand expensesduringthereportedperiods.Actualresultscould differfromthoseestimates.Duringthesecondquarterof2011,Gencoidentifiedanerrorinthecashflowstatementclassificationofacapital contributionfromAmerenthataffectedGencosyearended December31,2010.FortheyearendedDecember31, 2010,Gencospreviouslyreportedcashflowsprovidedby operatingactivitieswere$280million,andcashflowsused infinancingactivitieswere$251million.Ascorrected herein,Gencoscashflowsprovidedbyoperatingactivities were$304millionandcashflowsusedinfinancing activitieswere$275million.Thiscorrectionhadnoimpact onAmerenspreviouslyreportedconsolidatedstatementof cashflows.
RegulationCertainAmerensubsidiariesareregulatedbytheMoPSC,theICC,andFERC.Inaccordancewithauthoritativeaccountingguidanceregardingaccountingfortheeffectsofcertaintypesofregulation,AmerenMissouri andAmerenIllinoisdefercertaincostsasassetspursuant toactionsofrateregulatorsorbasedontheexpectation theywillbeabletorecoversuchcostsinrateschargedto customers.AmerenMissouriandAmerenIllinoisalsodefer certainamountsasliabilitiespursuanttoactionsofrate regulatorsorbasedontheexpectationthatsuchamounts willbereturnedtocustomersinfuturerates.Regulatory assetsandliabilitiesareamortizedconsistentwiththe periodofexpectedregulatorytreatment.SeeNote2-Rate andRegulatoryMattersforadditionalinformationon regulatoryassetsandliabilities.Inaddition,othercoststhat AmerenMissouriandAmerenIllinoisexpecttorecover fromcustomersarerecordedasconstructionworkin progressandpropertyandplant,net.SeeNote3-Property andPlant,Net.CashandCashEquivalentsCashandcashequivalentsincludecashonhandandtemporaryinvestmentspurchasedwithanoriginalmaturity ofthreemonthsorless.AllowanceforDoubtfulAccountsReceivableTheallowancefordoubtfulaccountsrepresentsourbestestimateofexistingaccountsreceivablethatwill ultimatelybeuncollectible.Theallowanceiscalculatedby applyingestimatedlossfactorstovariousclassesof outstandingreceivables,includingunbilledrevenue.The lossfactorsusedtoestimateuncollectibleaccountsare baseduponbothhistoricalcollectionsexperienceand managementsbestestimateoffuturecollectionssuccess giventheexistingandanticipatedfuturecollections environment.AmerenIllinoishasaratemechanismthat adjustsratesforbaddebtexpenseaboveorbelowthose beingcollectedinrates.MaterialsandSuppliesMaterialsandsuppliesarerecordedatthelowerofcostormarket.Costisdeterminedusingtheaverage-costmethod.Materialsandsuppliesarecapitalizedasinventorywhenpurchasedandthenexpensedorcapitalizedasplantassetswhen installed,asappropriate.ThefollowingtablepresentsabreakdownofmaterialsandsuppliesforeachoftheAmeren CompaniesatDecember31,2011,and2010:
Ameren (a)AmerenMissouriAmerenIllinoisGenco 2011: Fuel (b)............................................$251$150$-$76Gasstoredunderground
.............................17122149-Othermaterialsandsupplies
..........................2901765046$712$348$199$122 2010: Fuel (b)............................................$255$152$-$81Gasstoredunderground.............................17522152-Othermaterialsandsupplies..........................2771674649$707$341$198$130(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.(b)Consistsofcoal,oil,paint,propane,andtirechips.
98 PropertyandPlantWecapitalizethecostofadditionstoandbettermentsofunitsofpropertyandplant.Thecostincludeslabor, material,applicabletaxes,andoverhead.Anallowancefor fundsusedduringconstruction,asdiscussedspecifically below,isalsocapitalizedasacostofourrate-regulated assets.Interestincurredduringconstructioniscapitalized asacostofmerchantgenerationassets.Maintenance expenditures,includingnuclearrefuelingandmaintenance outages,areexpensedasincurred.Whenunitsof depreciablepropertyareretired,theoriginalcosts,less salvagevalues,arechargedtoaccumulateddepreciation.
Assetremovalcostsincurredbyourmerchantgeneration operationsthatdonotconstitutelegalobligationsare expensedasincurred.Assetremovalcostsaccruedbyour rate-regulatedoperationsthatdonotconstitutelegal obligationsareclassifiedasaregulatoryliability.SeeAsset RetirementObligationsbelowandNote3-Propertyand Plant,Net,foradditionalinformation.
DepreciationDepreciationisprovidedovertheestimatedlivesofthevariousclassesofdepreciablepropertybyapplying compositeratesonastraight-linebasistothecostbasisof suchproperty.Theprovisionfordepreciationforthe AmerenCompaniesin2011,2010and2009rangedfrom 3%to4%oftheaveragedepreciablecost.AllowanceforFundsUsedDuringConstructionInourrate-regulatedoperations,wecapitalizetheallowanceforfundsusedduringconstruction,orthecostof borrowedfundsandthecostofequityfunds(preferredand commonstockholdersequity)applicabletorate-regulated constructionexpenditures,asistheutilityindustry accountingpractice.Allowanceforfundsusedduring constructiondoesnotrepresentacurrentsourceofcash funds.Thisaccountingpracticeoffsetstheeffecton earningsofthecostoffinancingcurrentconstruction,andit treatssuchfinancingcostsinthesamemanneras constructionchargesforlaborandmaterials.Underacceptedratemakingpractice,cashrecoveryofallowanceforfundsusedduringconstructionandother constructioncostsoccurswhencompletedprojectsare placedinserviceandreflectedincustomerrates.The followingtablepresentstheannualallowanceforfunds usedduringconstructionratesthatwereutilizedduring 2011,2010and2009:201120102009 Ameren..........8%-9%8%-9%6%-9%AmerenMissouri...
8 86AmerenIllinois
....9 99GoodwillandIntangibleAssets Goodwill.Goodwillrepresentstheexcessofthepurchasepriceofanacquisitionoverthefairvalueofthenetassetsacquired.AsofDecember31,2011,AmerensandAmerenIllinoisgoodwillrelatedtoAmerens acquisitionofIPin2004andAmerensacquisitionof CILCORPin2003.WeevaluategoodwillforimpairmentasofOctober31ofeachyear,ormorefrequentlyifeventsorchangesin circumstancesindicatethattheassetmightbeimpaired.
Duringthefourthquarterof2011,AmerenandAmeren Illinoisusedaqualitativeevaluationtoassessthelikelihood ofagoodwillimpairmentbasedonauthoritativeaccounting guidanceissuedbytheFASBin2011.Thatevaluationled AmerenandAmerenIllinoistobelieveitwasmorelikely thannotthatthefairvalueofeachoftheirreportingunits exceededtheircarryingvalues,resultinginnoimpairment in2011.SeeNote17-Goodwill,ImpairmentandOther Chargesforadditionalinformationincludingthegoodwill impairmentrecordedin2010.IntangibleAssets.Ameren,AmerenMissouriandGencoclassifyemissionallowancesandrenewableenergy creditsasintangibleassets.Weevaluateintangibleassets forimpairmentifeventsorchangesincircumstances indicatethattheircarryingamountmightbeimpaired.See Note17-Goodwill,ImpairmentandOtherChargesfor additionalinformationincludingtheintangibleasset impairmentsrecordedin2011and2010.AtDecember31,2011,AmerensandAmerenMissourisintangibleassetsincludedrenewableenergy creditsobtainedthroughwindandsolarpowerpurchase agreements.ThebookvalueofeachofAmerensand AmerenMissourisrenewableenergycreditswas$7million andlessthan$1millionatDecember31,2011,and2010, respectively.InJuly2011,theEPAissuedtheCSAPR,whichcreatednewallowancesforSO 2andNO xemissions,andrestrictedtheuseofpreexistingSO 2andNO xallowancestotheacidrainprogramandNO xbudgettradingprogram,respectively.InanticipationoftheCSAPRannouncement, observablemarketpricesforexistingemissionallowances declinedmaterially.Consequently,during2011,Ameren andGencorecordedanoncash,pretaximpairmentcharge of$2millionand$1million,respectively,whichwas reflectedinGoodwill,impairmentandotherchargeson theirstatementsofincome.AmerenMissourirecordeda
$1millionimpairmentofitsSO 2emissionallowancesbyreducingapreviouslyestablishedregulatoryliabilityrelating totheSO 2emissionallowances,whichhadnoimpacttoearnings.OnDecember30,2011,theUnitedStatesCourt ofAppealsfortheDistrictofColumbiaissuedastayofthe CSAPR.Untilthatcourtproceedingisfinalized,theEPAis expectedtocontinuetoadministertheCAIRandtouse CAIRsallowanceprogramforcompliance.During2010, AmerenandGencoeachrecognizedanimpairmentcharge ofintangibleassetstoreducethecarryingvalueofSO 2emissionallowances.Thechargewasreflectedin Goodwill,impairmentandotherchargesintheir statementsofincome.SeeNote15-Commitmentsand Contingenciesforadditionalinformationonemission 99 allowancesandtheCSAPR.ThebookvalueofeachofAmerens,AmerenMissouris,andGencosCAIRemission allowanceswaslessthan$1millionatDecember31,2011.
ThebookvalueofAmerens,AmerenMissouris,and GencosCAIRemissionallowanceswas$7million,
$2million,and$3million,atDecember31,2010, respectively.Renewableenergycreditsandemissionallowancesarechargedtopurchasedpowerexpenseandfuelexpense, respectively,astheyareusedinoperations.Thefollowing tablepresentsamortizationexpensebasedonusageof renewableenergycreditsandemissionallowances,netof gainsfromsales,forAmeren,AmerenMissouri,Ameren Illinois,andGencoduringtheyearsendedDecember31, 2011,2010,and2009.Thetablebelowdoesnotincludethe intangibleassetimpairmentchargesreferencedabove.201120102009AmerenMissouri
........$(a)$6$2AmerenIllinois
..........
3 79 Genco (b)...............
21824 Other (b)(c)..............
1 45 Ameren (b)..............
$6$35$40(a)Lessthan$1million.(b)Includesallowancesconsumedthatwererecordedthroughpurchaseaccounting.(c)ConsistsofrenewableenergycreditexpenseforMarketingCompanyandemissionallowancesexpenseforAERG.ImpairmentofLong-livedAssetsWeevaluatelong-livedassetsclassifiedasheldandusedforimpairmentwheneventsorchangesin circumstancesindicatethatthecarryingvalueofsuch assetsmaynotberecoverable.Whetherimpairmenthas occurredisdeterminedbycomparingtheestimated undiscountedcashflowsattributabletotheassetswiththe carryingvalueoftheassets.Ifthecarryingvalueexceeds theundiscountedcashflows,werecognizeanimpairment chargeequaltothecarryingvalueoftheassetsinexcessof estimatedfairvalue.Intheperiodinwhichwedeterminean assetmeetstheheldforsalecriteria,werecordan impairmentchargetotheextentthebookvalueexceedsits fairvaluelesscosttosell.SeeNote17-Goodwill, ImpairmentandOtherChargesforinformationabout Amerens,AmerenMissourisandGencosimpairments.
InvestmentsAmerenandAmerenMissourievaluateforimpairmenttheinvestmentsheldinAmerenMissourisnuclear decommissioningtrustfund.Lossesonassetsinthetrust fundcouldresultinhigherfundingrequirementsfor decommissioningcosts,whichAmerenMissouribelieves wouldberecoveredinelectricratespaidbyitscustomers.
Accordingly,AmerenandAmerenMissourirecognizea regulatoryassetontheirbalancesheetsforlosseson investmentsheldinthenucleardecommissioningtrust fund.SeeNote9-NuclearDecommissioningTrustFund Investmentsforadditionalinformation.EnvironmentalCostsLiabilitiesforenvironmentalcostsarerecordedonanundiscountedbasiswhenitisprobablethataliabilityhas beenincurredandtheamountoftheliabilitycanbe reasonablyestimated.Costsareexpensedordeferredasa regulatoryassetwhenitisexpectedthatthecostswillbe recoveredfromcustomersinfuturerates.Ifenvironmental expendituresarerelatedtofacilitiescurrentlyinuse,such aspollutioncontrolequipment,thecostiscapitalizedand depreciatedovertheexpectedlifeoftheasset.UnamortizedDebtDiscount,Premium,andExpenseDiscount,premium,andexpenseassociatedwithlong-termdebtareamortizedoverthelivesoftherelatedissues.
RevenueOperatingRevenuesAmerenMissouri,AmerenIllinoisandGencorecordoperatingrevenueforelectricornaturalgasservicewhenitisdeliveredtocustomers.Weaccrueanestimateofelectric andnaturalgasrevenuesforservicerenderedbutunbilled attheendofeachaccountingperiod.TradingActivitiesWepresenttherevenuesandcostsassociatedwithcertainenergyderivativecontractsdesignatedastradingon anetbasisinOperatingRevenues-Electricand OperatingRevenues-Other.NuclearFuelAmerenMissouriscostofnuclearfueliscapitalizedandthenamortizedtofuelexpenseonaunit-of-production basis.Spentfueldisposalcostisbasedonnet kilowatthoursgeneratedandsold,andthatcostischarged toexpense.PurchasedGas,PowerandFuelRate-adjustment MechanismsAmerensutilitysubsidiarieshavevariousrate-adjustmentmechanismsinplacethatprovideforthe recoveryofpurchasednaturalgasandelectricfueland purchasedpowercosts.SeeNote2-RateandRegulatory Mattersfortheregulatoryassetsandliabilitiesrecordedat December31,2011,and2010,relatedtotherate-adjustmentmechanismsdiscussedbelow.InAmerenMissourisandAmerenIllinoisretailnaturalgasutilityjurisdictions,changesinnaturalgascostsare generallyreflectedinbillingstotheirnaturalgasutility customersthroughPGAclauses.Thedifferencebetween actualnaturalgascostsandcostsbilledtocustomersina givenperiodaredeferredasregulatoryassetsorliabilities.
Thedeferredamountsareeitherbilledorrefundedto naturalgasutilitycustomersinasubsequentperiod.
100 InAmerenIllinoisretailelectricutilityjurisdictions,changesinpurchasedpowercostsaregenerallyreflectedin billingstotheirelectricutilitycustomersthroughpass-throughrate-adjustmentclauses.Thedifferencebetween actualpurchasedpowercostsandcostsbilledtocustomers inagivenperiodaredeferredasregulatoryassetsor liabilities.Thedeferredamountsareeitherbilledor refundedtoelectricutilitycustomersinasubsequent
period.AmerenMissourihasaFACthatallowsanadjustmentofelectricratesthreetimesperyearforapass-throughto customersof95%ofchangesinfuel,emissionallowances andpurchasedpowercosts,netofoff-systemrevenues, includingMISOcostsandrevenues,greaterorlessthanthe amountsetinbaserates,subjecttoMoPSCprudency review.Thedifferencesbetweenthecostoffuelincurred andthecostoffuelrecoveredfromAmerenMissouris customersaredeferredasregulatoryassetsorliabilities.
Thedeferredamountsareeitherbilledorrefundedto AmerenMissouriselectricutilitycustomersina subsequentperiod.AccountingforMISOTransactionsMISO-relatedpurchaseandsaletransactionsarerecordedbyAmeren,AmerenMissouriandAmerenIllinois usingsettlementinformationprovidedbyMISO.
Thesepurchaseandsaletransactionsareaccountedforon anethourlyposition.Werecordnetpurchasesinasingle hourinOperatingExpenses-Purchasedpowerandnet salesinasinglehourinOperatingRevenues-Electricin ourstatementsofincome.Onoccasion,prior-period transactionswillberesettledoutsidetheroutinesettlement processbecauseofachangeinMISOstarifforamaterial interpretationthereof.Inthesecases,Ameren,Ameren MissouriandAmerenIllinoisrecognizeexpensesassociated withresettlementsoncetheresettlementisprobableand theresettlementamountcanbeestimated.Stock-basedCompensationStock-basedcompensationcostismeasuredatthegrantdatebasedonthefairvalueoftheaward.Ameren recognizesascompensationexpensetheestimatedfair valueofstock-basedcompensationonastraight-linebasis overtherequisiteserviceperiod.SeeNote12-Stock-basedCompensationforadditionalinformation.ExciseTaxesExcisetaxesimposedonusarereflectedonAmerenMissouricustomerelectricbillsandonAmerenMissouri andAmerenIllinoiscustomernaturalgasbills.Theyare recordedgrossinOperatingRevenues-Electric, OperatingRevenues-GasandOperatingExpenses-Taxesotherthanincometaxesonthestatementofincome.
ExcisetaxesreflectedonAmerenIllinoiselectriccustomer billsareimposedontheconsumerandarethereforenot includedinrevenuesandexpenses.Theyarerecordedas taxcollectionspayableandincludedinTaxesaccruedonthebalancesheet.ThefollowingtablepresentsexcisetaxesrecordedinOperatingRevenues-Electric,Operating Revenues-GasandOperatingExpenses-Taxesother thanincometaxesfortheyearsended2011,2010and
2009:201120102009AmerenMissouri
...........$137$130$112AmerenIllinois
............
575956 Ameren..................$194$189$168IncomeTaxesAmerenusesanassetandliabilityapproachforitsfinancialaccountingandreportingofincometaxes,in accordancewithauthoritativeaccountingguidance.
Deferredtaxassetsandliabilitiesarerecognizedfor transactionsthataretreateddifferentlyforfinancial reportingandincometaxreturnpurposes.Thesedeferred taxassetsandliabilitiesarebasedonstatutorytaxrates.Werecognizethatregulatorswillprobablyreducefuturerevenuesfordeferredtaxliabilitiesthatwereinitially recordedatratesinexcessofthecurrentstatutoryrate.
Therefore,reductionsinthedeferredtaxliability,which wererecordedbecauseofdecreasesinthestatutoryrate, havebeencreditedtoaregulatoryliability.Aregulatory assethasbeenestablishedtorecognizetheprobable recoveryinratesoffutureincometaxes,resulting principallyfromthereversalofallowanceforfundsused duringconstruction.Thisreferstoequityandtemporary differencesrelatedtopropertyandplantacquiredbefore 1976thatwereunrecognizedtemporarydifferencespriorto theadoptionoftheauthoritativeaccountingguidancefor incometaxes.Investmenttaxcreditsusedontaxreturnsforprioryearshavebeendeferredforbookpurposes;thecreditsare beingamortizedovertheusefullivesoftherelated investment.Deferredincometaxeswererecordedonthe temporarydifferencerepresentedbythedeferred investmenttaxcreditsandacorrespondingregulatory liability.Thisrecognizestheexpectedreductioninrate revenueforfuturelowerincometaxesassociatedwiththe amortizationoftheinvestmenttaxcredits.SeeNote13-IncomeTaxes.AmerenMissouri,AmerenIllinoisandGencoarepartiestoataxsharingagreementwithAmerenthat providesfortheallocationofconsolidatedtaxliabilities.The taxsharingagreementspecifiesthateachpartybeallocated anamountoftaxsimilartothatwhichwouldbeowedhad thepartybeenseparatelysubjecttotax.Anynetbenefit attributabletotheparentisreallocatedtoothermembers.
Thatallocationistreatedasacontributionofcapitaltothe partyreceivingthebenefit.NoncontrollingInterestsAmerensnoncontrollinginterestscomprisedthe20%ofEEInotownedbyAmerenandthepreferredstocknot subjecttomandatoryredemptionofAmerenssubsidiaries.
101 ThesenoncontrollinginterestsareclassifiedasacomponentofequityseparatefromAmerensequityinits consolidatedbalancesheet.Gencosnoncontrollinginterest comprisedthe20%ofEEInotownedbyGenco.This noncontrollinginterestisclassifiedasacomponentof equityseparatefromGencosequityinitsconsolidated balancesheet.EarningsperShareTherewerenomaterialdifferencesbetweenAmerensbasicanddilutedearningspershareamountsin2011, 2010,and2009.Thenumberofstockoptions,restricted stockshares,andperformanceshareunitsoutstandingwas immaterial.Therewerenoassumedstockoption conversionsin2009and2010,astheremainingstock optionswerenotdilutive.AllofAmerensstockoptions expiredinFebruary2010.AccountingChangesandOtherMattersThefollowingisasummaryofrecentlyadoptedauthoritativeaccountingguidanceaswellasguidance issuedbutnotyetadoptedthatcouldimpacttheAmeren
Companies.DisclosuresaboutanEmployersParticipationinaMultiemployerPlanInSeptember2011,FASBamendeditsguidancetorequireemployerstoprovideadditionaldisclosuresfor multiemployerpensionplansandmultiemployerother postretirementbenefitplans.Thisguidancewasapplicable toAmerenMissouri,AmerenIllinois,andGencobecause theyparticipateintheirparents(Amerens)benefitplans.
AmerenMissouri,AmerenIllinois,andGencoadoptedthis guidanceasofDecember31,2011.SeeNote11-RetirementBenefitsfortherequiredadditionaldisclosures madebyAmerenMissouri,AmerenIllinoisandGenco, includingtheamountoftheircontributionstoAmerens benefitplans.TestingofGoodwillforImpairmentInSeptember2011,FASBamendeditsguidanceontestingofgoodwillimpairment.Theamendedguidance providedcompaniestheoptiontofirstassessqualitative factorstodeterminewhetheritismorelikelythannotthat thefairvalueofareportingunitislessthanitscarrying amountasabasisfordeterminingwhetheritisnecessary toperformatwo-stepgoodwillimpairmenttest.As permitted,AmerenandAmerenIllinoisearlyadoptedthe amendedguidancefortheannualgoodwillimpairmenttest performedasofOctober31,2011.SeeNote17-Goodwill, ImpairmentandOtherChargesforadditionalinformation.DisclosuresaboutFairValueMeasurementsSeeNote8-FairValueMeasurementsforadoptedguidanceonfairvaluemeasurementsissuedinJanuary2010,whichbecameeffectiveinitsentiretyfortheAmerenCompaniesasofJanuary1,2011.InMay2011,FASBissuedadditionalauthoritativeguidanceregardingfairvaluemeasurements.Theguidance amendsthedisclosurerequirementsforfairvalue measurementsinordertoaligntheprinciplesforfairvalue measurementsandtherelateddisclosurerequirements underGAAPandInternationalFinancialReporting Standards.TheamendmentswillnotaffecttheAmeren Companiesresultsofoperations,financialpositions,or liquidity,asthisguidanceonlyrequiresadditional disclosures.ThisguidancewillbeeffectivefortheAmeren Companiesbeginninginthefirstquarterof2012with retrospectiveapplicationrequired.PresentationofComprehensiveIncomeInJune2011,FASBamendeditsguidanceonthepresentationofcomprehensiveincomeinfinancial statements.Theamendedguidancewillnotaffectthe AmerenCompaniesresultsofoperations,financial positions,orliquidity.Theamendedguidancechangesthe presentationofcomprehensiveincomeinthefinancial statements.Itrequiresentitiestoreportcomponentsof comprehensiveincomeeitherinacontinuousstatementof comprehensiveincomeorintwoseparatebutconsecutive statements.ThisguidancewillbeeffectivefortheAmeren Companiesbeginninginthefirstquarterof2012.In December2011,theFASBamendedtheguidanceto postponearequirementtopresentreclassification adjustmentsbyincomecomponentuntilfurtherguidanceis
issued.AssetRetirementObligationsAuthoritativeaccountingguidancerequiresustorecordtheestimatedfairvalueoflegalobligations associatedwiththeretirementoftangiblelong-livedassets intheperiodinwhichtheliabilitiesareincurredandto capitalizeacorrespondingamountaspartofthebookvalue oftherelatedlong-livedasset.Insubsequentperiods,we arerequiredtomakeadjustmentstoAROsbasedon changesintheestimatedfairvaluesoftheobligations.
Correspondingincreasesinassetbookvaluesare depreciatedovertheremainingusefullifeoftherelated asset.Uncertaintiesastotheprobability,timing,oramount ofcashflowsassociatedwithAROsaffectourestimatesof fairvalue.Ameren,AmerenMissouriandGencohave recordedAROsforretirementcostsassociatedwithAmeren MissourisCallawayenergycenterdecommissioningcosts, asbestosremoval,ashponds,andriverstructures.In addition,Ameren,AmerenMissouriandAmerenIllinois haverecordedAROsforthedisposalofcertain
transformers.Assetremovalcostsaccruedbyourrate-regulatedoperationsthatdonotconstitutelegalobligationsare classifiedasaregulatoryliability.SeeNote2-Rateand RegulatoryMatters.
102 ThefollowingtableprovidesareconciliationofthebeginningandendingcarryingamountofAROsfortheyears2011and 2010: Ameren Missouri (a)Ameren Illinois (b)GencoAERGAmeren (a)BalanceatDecember31,2009...................................$331$5$65$33$434Liabilitiesincurred...........................................5(c)3-8Liabilitiessettled............................................(4)(c)(c)(c)(4)Accretionin2010 (d)..........................................1914226Changeinestimates (e)........................................12(3)2(c)11BalanceatDecember31,2010...................................$363$3$74$35$475Liabilitiesincurred
...........................................--(c)-(c)Liabilitiessettled
............................................(1)(c)(2)(c)(3)Accretionin2011 (d)..........................................20(c)5227Changeinestimates (f)........................................(54)(c)(6)(6)(66)BalanceatDecember31,2011
...................................$328$3$71 (g)$31$433 (g)(a)Thenucleardecommissioningtrustfundassetsof$357millionand$337millionasofDecember31,2011,and2010,respectively,wererestrictedfordecommissioningoftheCallawayenergycenter.(b)BalanceincludedinOtherdeferredcreditsandliabilitiesonthebalancesheet.
(c)Lessthan$1million.
(d)AccretionexpensewasrecordedasanincreasetoregulatoryassetsatAmerenMissouriandAmerenIllinois.
(e)AmerenMissouriandGencochangedtheirestimatesforasbestosremoval.Additionally,Gencochangedtheestimatesrelatedtoretirementcostsforitscoalcombustionbyproductstorageareas.(f)AmerenMissourichangedestimatesrelatedtoitsCallawayenergycenterdecommissioningcostsbecauseofacoststudyperformedin2011andadeclineinthecostescalationfactorassumptions.Additionally,AmerenMissouri,GencoandAERGchangedestimatesrelatedto retirementcostsforasbestosremoval,riverstructuresandtheircoalcombustionbyproductstorageareas.(g)Balanceincluded$5millioninOthercurrentliabilitiesonthebalancesheetasofDecember31,2011.GencoAssetSaleInJune2010,Gencocompletedasaleof25%ofitsColumbiaCTenergycentertothecityofColumbia, Missouri.Gencoreceivedcashproceedsof$18millionandrecognizeda$5millionpretaxgainfromthesale.InJune2011,GencocompletedthesaleofitsremaininginterestintheColumbiaCTenergycentertothe cityofColumbia,Missouri.Gencoreceivedcashproceeds of$45millionandrecognizedan$8millionpretaxgain fromthesale.Effectivewiththesale,thepowerpurchase agreementsbetweenMarketingCompanyandthecityof Columbiawereterminated.Alsoin2011,Gencosold additionalpropertyandassetsforcashproceedsof
$4million,whichresultedinpretaxgainsof$4million.MedinaValleySalein2012InFebruary2012,AmerencompletedtheassetsaleofitsMedinaValleyenergycentersnetpropertyandplantfor cashproceedsof$16millionandanadditional$1million paymentatthetwo-yearanniversarydateofthesaleifthere arenoviolationsofrepresentationsandwarranties containedinthesaleagreement.EmployeeSeparationandOtherChargesDuringthefourthquarterof2011,aspartofeffortstoreduceoperationsandmaintenanceexpenses,Ameren MissouriandAmerenServicesextendedvoluntary separationoffersconsistentwithAmerensstandard managementseparationprogramtoeligiblemanagementandlaborunion-representedemployees.Approximately340employeesofAmerenMissouriandAmerenServices acceptedtheoffersandlefttheiremploymentby December31,2011.AmerenandAmerenMissouri recordedapretaxchargetoearningsof$28millionand
$27million,respectively,fortheseverancecostsrelatedto theseoffers.ThesechargeswererecordedinOther operationsandmaintenanceexpenseineachcompanys statementofincomefortheyearendedDecember31, 2011.Substantiallyalloftheseverancecostswillbepaidin thefirstquarterof2012andwererecordedinAccounts andwagespayableoneachcompanysbalancesheetat December31,2011.Theseverancecostsrelatedto participatingAmerenServicesemployeeswereallocatedto affiliatesconsistentwiththetermsofitssupportservices agreement,whichisdescribedinNote14-RelatedParty
Transactions.Alsoduring2011,GencoceasedoperationsofitsMeredosiaandHutsonvilleenergycenters.Theclosureof theseenergycentersattheendof2011resultedinthe eliminationof90positions.AmerenandGencoeach recordeda$4millionpretaxchargeforrelatedseverance andrelocationcoststoGoodwill,impairmentandother chargesintheirstatementsofincomefortheyearended December31,2011.Theseverancecostswillbe substantiallypaidduringthefirstquarterof2012andwere accruedinAccountsandwagespayableoneach companysbalancesheetatDecember31,2011.See Note17-Goodwill,ImpairmentandOtherChargesfor additionalinformation.
103 In2010,AmerensMerchantGenerationsegmentinitiatedaninvoluntaryseparationprogramtoreduce positionsunderthetermsandbenefitsconsistentwith Amerensstandardmanagementseparationprogram.
AmerenandGencorecordedapretaxchargetoearningsof
$4millionin2010fortheseverancecostsrelatedtothis program.ThesechargeswererecordedinOtheroperations andmaintenanceexpenseonAmerensandGencos consolidatedstatementofincome.In2009,Amereninitiatedvoluntaryandinvoluntaryseparationprogramsundertermsandbenefitsconsistent withAmerensstandardmanagementseverance program.Amerenrecordedapretaxchargetoearningsof
$17million(AmerenMissouri-$8million, AmerenIllinois-$3million,Genco-$5million)forthe severancecostsrelatedtoboththevoluntaryand involuntaryseparationprograms.Thesechargeswere recordedinOtheroperationsandmaintenanceexpensein eachcompanysstatementofincome.Thenumberof positionseliminatedasaresultoftheseseparation programswasapproximately300.InitsMay2010electric rateorder,theMoPSCallowedAmerenMissouritorecover thecostsofthisseveranceprogramfromitscustomers.
Therefore,in2010AmerenMissourireclassifiedthe2009 Otheroperationsandmaintenanceexpenseto Regulatoryassets.Inadditiontotheseprograms,Genco recordeda$4millionpretaxchargeto2009earningsin connectionwiththeretirementoftwogeneratingunitsatits Meredosiaenergycenterandforrelatedobsoleteinventory.NOTE2-RATEANDREGULATORYMATTERSBelowisasummaryofsignificantregulatoryproceedingsandrelatedlawsuits.Weareunabletopredict theultimateoutcomeofthesematters,thetimingofthe finaldecisionsofthevariousagenciesandcourts,orthe impactonourresultsofoperations,financialposition,or
liquidity.
Missouri2009ElectricRateOrderInFebruary2009,Noranda,AmerenMissourislargestelectriccustomer,andtheMoOPCappealedcertainaspects oftheMoPSCs2009electricrateordertotheCircuitCourt ofStoddardCounty,Missouri.InSeptember2009,the StoddardCountyCircuitCourtgrantedNorandasrequestto staytheelectricrateincreasegrantedbytheJanuary2009 MoPSCsorderasitappliedspecificallytoNorandas electricserviceaccountuntilthecourtrendereditsdecision ontheappeal.Fromthegrantingofthestayrequestuntil June2010,NorandapaidintotheStoddardCountyCircuit Courtsregistrytheentireamountofitsmonthlybaserate increaseandmonthlyFACpayments.InJune2010,when theMay2010electricrateorderbecameeffective,Noranda ceasedmakingbaseratepaymentsintotheStoddard CountyCircuitCourtsregistry.Norandacontinuedtopay intotheStoddardCountyCircuitCourtsregistryitsmonthly FACpaymentsrelatedtoelectricservicereceivedduringthetimeperiodspriortotheeffectivenessoftheMay2010electricrateorder.InAugust2010,theStoddardCountyCircuitCourtissuedajudgmentthatreversedpartsoftheMoPSCs decision.However,uponissuance,theStoddardCounty CircuitCourtsuspendeditsownjudgment.Ameren MissourifiledanappealoftheStoddardCountyCircuit CourtsjudgmentwiththeMissouriCourtofAppeals, SouthernDistrict.InNovember2011,theMissouriCourtof AppealsissuedarulingthatupheldtheMoPSCsJanuary 2009electricrateorder;therebyreversingtheStoddard CountyCircuitCourtsAugust2010decision.Asof December31,2011,theamountheldintheStoddard CountyCircuitCourtsregistrywas$20million.That amountwasreflectedinAccountsreceivable-tradeon AmerensandAmerenMissourisbalancesheetsat December31,2011.AmerenMissouriexpectstoreceiveallofthefundsheldintheStoddardCountyCircuitCourtsregistryrelatingtothestayduringthefirstquarterof2012.2010ElectricRateOrderInMay2010,theMoPSCissuedanorderapprovinganincreaseforAmerenMissouriinannualrevenuesfor electricserviceof$230million.TheMIECandMoOPCappealedcertainaspectsoftheMoPSCordertotheColeCountyCircuitCourt.Inaddition totheMIECappeal,fourindustrialcustomers,whoare membersofMIEC,alsofiledarequestforastaywiththe ColeCountyCircuitCourt.InDecember2010,theCole CountyCircuitCourtgrantedtherequestofthefour industrialcustomerstostaytheMoPSCs2010electricrate orderandrequiredthosecustomerstopayintotheCole CountyCircuitCourtsregistrythedifferencebetweentheir billingsunderthe2010Missourielectricrateorderandtheir billingsunderaMissourielectricrateorderthatbecame effectiveinJune2007,whichwas,atthattime,thelast AmerenMissourirateorderforwhichappealshadbeen exhausted.InFebruary2011,thefourindustrialcustomers postedthebondrequiredbythestay.Sincethebondwas posted,thefourindustrialcustomershavemadepayments intotheColeCountyCircuitCourtsregistryequaltothe differencebetweentheirbaseratebillingsunder2010 electricratesand2007electricrates,aswellastheirFAC amountstotheextentthosebillingsrelatetoserviceprior totheeffectivedateofthenewratesestablishedbythe 2011electricrateorder.Becauseofthelagbetween accumulationsofchangesinnetfuelcostsandthetime thosenetfuelcostsarerecoveredthroughFACcharges appliedtocustomersbills,thefourindustrialcustomers willcontinuetopayaportionoftheirFACpaymentstothe ColeCountyCircuitCourtsregistryforservicepriortothe effectivedateofthenewratesbythe2011electricrate order.ItisexpectedthataportionoftheFACbillings invoicedtothesecustomersinSeptember2012wouldbe thelastcontestedamountdepositedintotheColeCounty CircuitCourtsregistryrelatingtothis2010electricrate orderappeal,pendingresolutionoftheappeal.Asof December31,2011,theamountheldbytheColeCounty 104 CircuitCourt,excludingthebondamount,was$15million.ThisamountheldintheregistrywasreflectedinAccounts receivable-tradeonAmerensandAmerenMissouris balancesheetsatDecember31,2011.AColeCountyCircuitCourtdecisionisexpectedduringthefirstquarterof2012ontheMIECsandMoOPCs appeal.Wecannotpredicttheultimateoutcomeofthis proceeding,whichcouldhaveamaterialeffectonAmerens andAmerenMissourisresultsofoperations,financial position,andliquidity.IftheMoPSCs2010electricrate orderisultimatelyupheld,AmerenMissouriwillreceiveall ofthefundsheldintheColeCountyCircuitCourtsregistry, plusaccruedinterest.IfAmerenMissouriweretoconclude thatsomeportionoftherateincreaseresultingfromthe 2010electricrateorderwasprobableofrefundtoAmeren Missouriscustomers,achargetoearningswouldbe recordedfortheestimatedamountofrefundintheperiodin whichthatdeterminationwasmade.Atthistime,Ameren Missouridoesnotbelieveanyaspectofthe2010MoPSCs electricrateorderisprobableofrefundtoAmeren Missouriscustomers.Therefore,noreservehasbeen
established.2011ElectricRateOrderInJuly2011,theMoPSCissuedanorderapprovinganincreaseforAmerenMissouriinannualrevenuesfor electricserviceof$173million,including$52million relatedtoanincreaseinnormalizednetfuelcostsabovethe netfuelcostsincludedinbaseratespreviouslyauthorized bytheMoPSCinits2010electricrateorder.Therevenue increasewasbasedona10.2%returnonequity,acapital structurecomposedof52.2%commonequity,andarate baseof$6.6billion.Theratechangesbecameeffectiveon July31,2011.TheMoPSCorderapprovedthecontinued useofAmerenMissourisvegetationmanagementand infrastructurecosttracker,itspensionandpostretirement benefitcosttracker,andtheFACatthecurrent95%sharing level.TheMoPSCordershortenedtheFACrecoveryand refundperiodfrom12monthstoeightmonths.TheMoPSC orderdeniedAmerenMissourisrequestfortheabilityto recoveranyunder-recoveryoffixedcostsasaresultof lowersalesvolumesfromtheimplementationofenergy efficiencymeasures.Additionally,theMoPSCorderprovidedforatrackingmechanismforuncertainincometaxpositions.Theorder providesthatreservesforuncertainincometaxpositionsdo notreduceratebase.However,whenanuncertainincometax positionliabilityisresolved,theorderrequiresthecreationof aregulatoryassetorregulatoryliabilitytoreflectthetime value(usingtheweighted-averagecostofcapitalintheorder) ofthedifferencebetweentheuncertainincometaxposition liabilitythatwasexcludedfromratebaseandthefinaltax liability.Theresultingregulatoryassetorliabilitywillbe amortizedoverthreeyearsbeginningontheeffectivedateof newratesestablishedinthenextelectricratecase.TheMoPSCorderdisallowedtherecoveryofallcostsofenhancements,orcoststhatwouldhavebeenincurred absentthebreach,relatedtotherebuildingoftheTaumSaukenergycenterinexcessofamountsrecoveredfrompropertyinsurance.Asaresultoftheorder,Amerenand AmerenMissourieachrecordedin2011apretaxchargeto earningsof$89millionrelatingtotheTaumSauk disallowance.ThischargewasrecordedinAmerens statementofincomeasGoodwill,impairmentandother chargesandrecordedinAmerenMissourisstatementof incomeasLossfromregulatorydisallowance.InJuly2011,anewlawthatreformedthejudicialappealprocessforMoPSCrateorderstookeffect.Among otheritems,thenewlawallowsappealstobypassthe circuitcourtandtobemadedirectlytotheappellatecourt.
Thenewlawprovidesthatratescannotbestayed;however, theappellatecourtcoulddirecttheMoPSCtoreviserates.
Suchraterevisionscouldbeorderedtobeapplied retroactively.Thisnewlawappliedtojudicialappealsofthe MoPSCsJuly2011rateorder.InAugust2011,AmerenMissouriappealedthedisallowanceofTaumSaukenhancementstotheMissouri CourtofAppeals,WesternDistrict.Adecisionisexpected bytheMissouriCourtofAppeals,WesternDistrict,in2012.
AmerenMissouricannotpredicttheultimateoutcomeofits
appeal.PendingElectricRateCaseOnFebruary3,2012,AmerenMissourifiledarequestwiththeMoPSCtoincreaseitsannualrevenuesforelectric serviceby$376million.Includedinthisrequestedincrease isa$103millionincreaseinnormalizednetfuelcosts abovethenetfuelcostsincludedinbaseratespreviously authorizedbytheMoPSCinitsJuly2011electricrate order.Absentinitiationofthisgeneralrateproceeding,95%
ofthisamountwouldhavebeenreflectedinrate adjustmentsimplementedunderAmerenMissourisFAC.
Approximately$85millionoftherequestrelatesto investmentstoimprovethereliabilityofAmerenMissouris infrastructureandtocomplywithenvironmentaland renewableenergyregulations,includingtherequested returnonsuchinvestments,and$81millionoftherequest relatestorecoveryofthecostsassociatedwithenergy efficiencyprogramsundertheMEEIA,includingenergy efficiencyinvestments,whichisdiscussedbelow.The electricrateincreaserequestwasbasedona10.75%return onequity,acapitalstructurecomposedof52%common equity,anaggregateelectricratebaseof$6.8billion,anda testyearendedSeptember30,2011,withcertainproforma adjustmentsexpectedthroughtheanticipatedtrue-update ofJuly31,2012.Aspartofitsfiling,AmerenMissourirequestedthattheMoPSCapprovetheimplementationofastormcost trackingmechanism,aswellasplant-in-serviceaccounting treatment.Theproposedstormcosttrackingmechanism wouldallowAmerenMissouritorecordaregulatoryasset orliability,asapplicable,reflectingthedifferencebetweena baselevelofmajorstormrestorationcostsusedtosetrates inthecurrentratecaseandtheactualstormrestoration costs,andtorequestrecoveryofsuchregulatoryassetor 105 liabilityinAmerenMissourisnextratecaseforamortizationoverathree-yearperiod.Theplant-in-serviceaccounting treatmentwouldpermitAmerenMissouritorecovera returnandtodeferdepreciationexpenseonassetsplacedin servicebutnotyetreflectedincustomerrates.AmerenMissourirequestedcontinueduseoftheFACandtheregulatorytrackingmechanismsforvegetation management/infrastructureinspectioncosts,forpension andpostretirementbenefits,andforuncertainincometax positionsthattheMoPSCpreviouslyauthorizedinearlier electricrateorders.AmerenMissourialsorequested recoveryofthe2011voluntaryseparationprogram severancecostsoverthreeyears.AdecisionbytheMoPSCinthisproceedingisexpectedinDecember2012.AmerenMissouricannot predictthelevelofanyelectricserviceratechangethe MoPSCmayapprove,whenanyratechangemaygointo effect,orwhetheranyrateincreasethatmayeventuallybe approvedwillbesufficientforAmerenMissouritorecover itscostsandearnareasonablereturnonitsinvestments whentheincreasegoesintoeffect.MEEIAFilingTheMEEIA,enactedin2009,establishedaregulatoryframeworkthat,amongotherthings,allowselectricutilities torecovercostsrelatedtoMoPSC-approvedenergy efficiencyprograms.ThelawrequirestheMoPSCtoensure thatautilitysfinancialincentivesarealignedwithhelping customersuseenergymoreefficiently,toprovidetimely costrecovery,andtoprovideearningsopportunities associatedwithcost-effectiveenergyefficiencyprograms.
Missouridoesnothavealawmandatingenergyefficiency
standards.InJanuary2012,AmerenMissourimadeitsinitialfilingwiththeMoPSCundertheMEEIA.Thisfiling proposesathree-yearplanthatincludesaportfolioof energyefficiencyprogramsalongwithacost-recovery mechanism.Iftheproposalisapproved,beginningin January2013,AmerenMissouriplanstoinvest
$145millionoverthreeyearsfortheproposedenergy efficiencyprograms.AdecisionbytheMoPSCinthisproceedingisanticipatedinthesecondquarterof2012.TheMoPSCs orderinthisproceedingwillnotaffectAmerenMissouri ratesuntiltheseratesareincludedinanelectricservicerate case.AmerenMissourianticipatesthattheimpactsofthe MoPSCsdecisioninthisMEEIAfilingwillbeincludedin ratessetunderitspendingelectricserviceratecasethat wasfiledonFebruary3,2012,whichhasananticipated true-updateofJuly31,2012.AmerenMissourispending electricratecaseincludesanannualrevenueincreaseof
$81millionrelatingtoitsplannedportfolioofenergy efficiencyprogramsincludedinitsMEEIAfiling.FACPrudenceReviewMissourilawrequirestheMoPSCtocompleteprudencereviewsofAmerenMissourisFACatleastevery18months.InApril2011,theMoPSCissuedanorderwithrespecttoitsreviewofAmerenMissourisFACforthe periodfromMarch1,2009,toSeptember30,2009.Inthis order,theMoPSCruledthatAmerenMissourishouldhave includedintheFACcalculationallrevenuesandcosts associatedwithcertainlong-termpartialrequirementssales thatweremadebyAmerenMissouribecauseofthelossof NorandasloadcausedbyasevereicestorminJanuary 2009.Asaresultoftheorder,AmerenMissourirecordeda pretaxchargetoearningsof$18million,including
$1millionforinterest,in2011foritsobligationtorefundto AmerenMissouriselectriccustomerstheearnings associatedwiththesesalespreviouslyrecognizedbyAmerenMissouriduringtheperiodfromMarch1,2009,toSeptember30,2009.InOctober2011,AmerenMissouri beganrefundingthe$18milliontocustomersthroughthe
FAC.AmerenMissouridisagreeswiththeMoPSCordersclassificationofthesesalesandbelievesthatthetermsof itsFACtariffdidnotprovidefortheinclusionofthesesales intheFACcalculation.InJune2011,AmerenMissourifiled anappealwiththeColeCountyCircuitCourt.Adecisionis expectedfromtheColeCountyCircuitCourtin2012.
Separately,inJuly2011,AmerenMissourifiledarequest withtheMoPSCforanaccountingauthorityorderthat wouldallowAmerenMissouritodefer,asaregulatory asset,fixedcoststotaling$36millionthatwerenot recoveredfromNorandaasaresultofthelossofload causedbythesevere2009icestormforpotentialrecovery inafutureelectricratecase.Wecannotpredicttheultimate outcomeoftheseregulatoryorjudicialproceedings.AmerenMissourirecognizedanadditional$25millionofpretaxearningsassociatedwiththesamelong-term partialrequirementssalescontractssubsequentto September30,2009,whichwerenotaddressedbythe MoPSCorderissuedinApril2011.TheMoPSCsFAC reviewfortheperiodfromOctober1,2009,toMay31, 2011,wasinitiatedinSeptember2011.InOctober2011, theMoPSCstafffiledarecommendationwiththeMoPSCto directAmerenMissouritorefundtocustomers,priortothe completionofthestaffsprudencereview,thepretax earningsassociatedwiththesamelong-termpartial requirementssalescontractssubsequenttoSeptember30, 2009.TheMoPSCstaffcalculatedthesepretaxearningsto be$26million.WecannotpredictwhethertheMoPSCwill approvethisrecommendation.IfAmerenMissouriwereto determinethatthesesaleswereprobableofrefundto AmerenMissouriselectriccustomers,achargetoearnings wouldberecordedfortherefundintheperiodinwhichthat determinationwasmade.Becauseofpendingcourtappeals andregulatoryreview,AmerenMissouridoesnotcurrently believetheseamountsareprobableofrefundtocustomers.RenewableEnergyPortfolioRequirementAballotinitiativepassedbyMissourivotersinNovember2008createdarenewableenergyportfolio requirement.Beginningin2011,AmerenMissouriand otherMissouriinvestor-ownedutilitiesarerequiredto 106 purchaseorgeneratefromrenewableenergysourceselectricityequalingatleast2%ofnativeloadsales,withthat percentageincreasinginsubsequentyearstoatleast15%
by2021,subjecttoa1%limitoncustomerrateimpacts.At least2%ofeachportfoliorequirementmustbederived fromsolarenergy.Compliancewiththerenewableenergy portfoliorequirementcanbeachievedthroughgeneration ortheprocurementofrenewableenergycredits.Ameren Missouriexpectsthatanyrelatedcostsorinvestmentswill ultimatelyberecoveredinrates.InJuly2010,theMoPSCissuedfinalrulesimplementingthestatesrenewableenergyportfolio requirement.AmerenMissouriobjectedtotheMoPSCrules calculatingthe1%limitoncustomerrates.InAugust2010, AmerenMissouriandothergroupsfiledanappealwiththe ColeCountyCircuitCourtofmultipleaspectsofthe MoPSCsrules.InDecember2011,theColeCountyCircuit Courtissuedarulingclarifyingthatthe1%customerrate increaselimitisanannualrestriction,notamultiyearlimit.
Illinois IEIMAInOctober2011,theIEIMAwasenactedintolawandbecameeffectiveimmediately.Certainamendmentstothe IEIMAbecameeffectiveonDecember30,2011.On January3,2012,AmerenIllinoiselectedtoparticipateinthe performance-basedformularatemakingprocessestablished pursuanttotheIEIMAbyfilinginitialperformance-based formularateswiththeICC.Withthisfiling,asrequiredby law,AmerenIllinoispreviouslypendingelectricdelivery serviceratecasewaswithdrawn.Theinitialfiling,basedon 2010recoverablecostsandexpectednetplantadditionsfor 2011and2012,willresultinnewelectricdeliveryservice ratesinOctober2012.PendingICCapproval,theinitial filingwillresultinadecreaseof$19millioninAmeren Illinoisrevenuesforelectricdeliveryservice,onan annualizedbasis.AmerenIllinoisanticipatesmakingan updatefilingbyMay1,2012,basedon2011costsand expectednetplantadditionsfor2012,thatwouldresultin newelectricdeliveryserviceratesonJanuary1,2013.AmerenIllinoiswillparticipateinaperformance-basedformulaprocessfordeterminingrates.Theformulawill providefortherecoveryofactualcostsofelectricdelivery servicethatareprudentlyincurred,reflecttheutilitysactual regulatedcapitalstructure,andincludeaformulafor calculatingthereturnonequitycomponentofthecostof capital.Thereturnonequitycomponentoftheformularate willbeequaltotheaveragefortheapplicablecalendaryear ofthemonthlyaverageyieldsof30-yearUnitedStates treasurybondsplus590basispointsfor2012and580 basispointsthereafter.AmerenIllinoisactualreturnon equityrelatingtoelectricdeliveryservicewillbesubjecttoa collaradjustmentonearningsinexcessof50basispoints aboveorbelowitsallowedreturn.Beginningin2012,the lawprovidesforanannualreconciliationofrevenuesto costsprudentlyandreasonablyincurred.Thisannualrevenuereconciliation,alongwiththecollaradjustment,ifnecessary,willbecollectedfromorrefundedtocustomers inasubsequentyear.AmerenIllinoiswillalsobesubjecttofiveperformancestandards.Failuretoachievethestandardswillresultina reductioninthecompanysallowedreturnonequity calculatedundertheformula.Theperformancestandards includeimprovementsinservicereliabilitytoreduceboth thefrequencyanddurationofoutages,improvementsin customersatisfactionscores,reductioninthenumberof estimatedbills,andareductioninuncollectibleaccounts expense.TheIEIMAprovidesforreturnonequitypenalties totalingupto30basispointsin2013through2015,34 basispointsin2016through2018,and38basispointsin 2019through2022iftheperformancestandardsarenot met.Theformularatemakingprocessiseffectiveuntilthe endof2017,butcouldbeextendedbytheIllinoisGeneral Assemblyforanadditionalfiveyears.Theformula ratemakingprocesswouldalsoterminateiftheaverage residentialrateincreasesbymorethan2.5%annuallyfrom June2011throughMay2014.Between2012and2021,AmerenIllinoiswillberequiredtoinvest$625millionincapitalexpenditures incrementaltoAmerenIllinoisaverageelectricdelivery capitalexpendituresforcalendaryears2008through2010 tomodernizeitsdistributionsystem.Suchinvestmentsare expectedtoencourageeconomicdevelopmentandtocreate anestimated450additionaljobswithinIllinois.Ameren Illinoisissubjecttomonetarypenaltiesif450additional jobsarenotcreatedduringthepeakprogramyears.Also, AmerenIllinoiswillberequiredtocontribute$1million annuallyforcertainnonrecoverablecustomerassistance programsforaslongasAmerenIllinoisparticipatesinthe formularatemakingprocess.AmerenIllinoiswillalsobe requiredtomakeaone-time$7.5millionnonrecoverable donationtotheIllinoisScienceandEnergyInnovationTrust in2012,aswellasanapproximate$1millionannual donationtothesametrustforaslongasitparticipatesin theformularatemakingprocess.TheIEIMAdoesnotapplytonaturalgasutilities.2012NaturalGasDeliveryServiceRateOrderInJanuary2012,theICCissuedarateorderthatapprovedanincreaseinannualAmerenIllinoisrevenues fornaturalgasdeliveryserviceof$32million.Therevenue increasewasbasedona9.06%returnonequity,acapital structurecomposedof53.3%commonequity,andarate baseof$1billion.Therateorderwasbasedona2012 futuretestyear.Theratechangesbecameeffectiveon January20,2012.InFebruary2012,theICCdenied rehearingrequestsbyAmerenIllinoisandanintervenor relatedtothegrantedreturnonequity.
107 2010ElectricandNaturalGasDeliveryServiceRateOrdersDuring2010,theICCissuedordersthatauthorizedanaggregate$40millionincreaseinAmerenIllinoisannual electricandnaturalgasdeliveryservicerevenues.InDecember2010,AmerenIllinoisandanintervenorappealedportionsoftheICCsorderstotheAppellateCourt oftheFourthDistrictofIllinois.InJanuary2012,the AppellateCourtissuedadecisionthatupheldtheICCs 2010electricandnaturalgasdeliveryservicerateorder.
FederalElectricTransmissionInvestmentFERC,initsorderissuedinMay2011,approvedtransmissionrateincentivesfortheIllinoisRiversproject andtheBigMuddyproject,whichwillbedevelopedbyATXI orATX.TheFERCMay2011orderapprovedthefollowing ratemechanismswithrespecttoAmerensIllinoisRivers andBigMuddyprojects:
Fullrecoveryoffinancingcosts,includingdebtandequity,associatedwithconstructionworkinprogress beforetheassetisplacedinservice; Recoveryofcostsprudentlyincurredindevelopingprojectfacilitiesthatmightlaterbeabandoneddueto issuesoutsidethecompanyscontrol;and Useofahypotheticalcapitalstructureduringconstructionthatreflectsacapitalstructureof56%
commonequity.InDecember2011,MISOapprovedtheIllinoisRiversprojectaswellastheSpoonRiverandMarkTwainprojects.
ThetotalinvestmentinthesethreeMISO-approvedprojects isexpectedtobemorethan$1.2billionthrough2019,with potentialinvestmentof$750millionfrom2012to2016.All fourprojectsareinMissouriandIllinois.Constructionwill beginfirstontheIllinoisRiversproject.TheBigMuddy projectiscurrentlybeingevaluatedforinclusioninMISOs 2012expansionplan.OnDecember30,2011,ATXImadeafilingwithFERCseekingaforward-lookingratecalculationwithanannual revenuereconciliationadjustmentaswellasrequestingthe implementationoftheincentivesFERCapprovedinitsMay 2011orderdescribedabovefortheIllinoisRiversproject andtheBigMuddyproject.FERCisexpectedtoissuea decisionontheATXIfilingduringthefirstquarterof2012.2011WholesaleDistributionRateCaseInJanuary2011,AmerenIllinoisfiledarequestwithFERCtoincreaseitsannualrevenuesforelectricdelivery serviceforitswholesalecustomersby$11million.These wholesaledistributionrevenuesaretreatedasadeduction fromAmerenIllinoisrevenuerequirementinretailrate filingswiththeICC.InMarch2011,FERCissuedanorder authorizingtheproposedratestotakeeffect,subjectto refundwhenthefinalratesaredetermined.AmerenIllinois reachedanagreementwithtwoofitsninewholesale customersin2011.TheimpassewiththeremainingsevenwholesalecustomershasresultedinFERClitigation.AninitialdecisionbytheFERCadministrativelawjudgeis expectedin2012andafinalFERCdecisionmaybereceived after2012.Wecannotpredicttheultimateoutcomeofthis proceedingoritsimpactonAmerensorAmerenIllinois resultsofoperations,financialposition,orliquidity.RegionalTransmissionOrganizationAmerenMissouriisatransmissionowningmemberofMISO.AmerenMissourireceivedauthorizationfromthe MoPSCtoparticipateinMISO,subjecttocertainconditions.
AmerenMissouriscontinuedconditionalMISO participationisauthorizedbytheMoPSCthroughApril30, 2012.AsrequiredbytheMoPSC,AmerenMissourifiledinNovember2010andagaininAugust2011updatedcost benefitstudieswiththeMoPSCthatevaluatedthecostsand benefitsofAmerenMissouriscontinuedparticipationin MISO.AmerenMissourisupdatedstudiescontinueto showsubstantialbenefitstoAmerenMissouricustomers associatedwithitsparticipationinMISO.InNovember2011,AmerenMissouri,togetherwiththeMoPSCstaff,theMIEC,andMISO,fileda Non-UnanimousStipulationandAgreement(Stipulation) withtheMoPSCthatreflectedtheiragreementthat continuedAmerenMissouriparticipationinMISOthrough May31,2016,wasprudentandreasonable,subjectto certainconditions.TheMoOPCopposestheStipulation,in partbecauseofitsdesirethattheMoPSCimpose conditionsrelatingtoATXsinvolvementintransmission projectslocatedwithinAmerenMissourisserviceterritory.
Theseconditions,whicharenotincludedintheStipulation are,inAmerenMissourisview,inappropriateandunlawful.
AmerenMissouriexpectsanorderfromtheMoPSCbefore April30,2012.FERCOrder-MISOChargesAmerenMissouriandAmerenIllinois,aswellasotherMISOparticipants,havefiledcomplaintswithFERCwith respecttotheFERCsMarch2007orderinvolvingthe reallocationofcertainMISOoperationalcostsamongMISO participantsretroactiveto2005.Subsequently,FERChas issuedaseriesofordersrelatedtotheapplicabilityandthe implementationoftheorder,whichinsomecaseshave conflictedwithpreviousorders.InMay2009,FERCchangedtheeffectivedateforrefundssuchthatcertainoperationalcostswouldbe allocatedamongMISOmarketparticipantsbeginning November2008,insteadofAugust2007.InJune2009, AmerenMissouriandAmerenIllinoisfiledarequestfor rehearing.Therehearingrequestispending.InJune2009,FERCissuedanorderdismissingrehearingrequestsofaNovember2008orderandwaiving refundsofamountsbilledthatwereincludedintheMISO charge,undertheassumptionthattherewasarate mismatchfortheperiodApril2006throughNovember 108 2007.AmerenMissouriandAmerenIllinoisfiledarequestforrehearinginJuly2009.Thisrehearingrequestis
pending.AmerenMissouriandAmerenIllinoisdonotbelievethattheultimateresolutionoftheseproceedingswillhavea materialeffectontheirresultsofoperations,financial position,orliquidity.AmerenMissouriPowerPurchaseAgreementwithEntergyArkansas,Inc.Beginningin2005,FERCissuedaseriesofordersaddressingacomplaintfiledin2001bytheLouisianaPublic ServiceCommission(LPSC)againstEntergyArkansas,Inc.
(Entergy)andcertainofitsaffiliates.Thecomplaintalleged unjustandunreasonablecostallocations.Asaresultofthe FERCorders,EntergybeganbillingAmerenMissouriin 2007foradditionalchargesundera165-megawattpower purchaseagreement,andAmerenMissouripaidthose charges.Additionalchargescontinuedduringtheremainder ofthetermofthepowerpurchaseagreement,which expiredAugust31,2009.AlthoughAmerenMissouriwas notapartytotheFERCproceedingsthatgaverisetothese additionalcharges,AmerenMissouriintervenedinrelated FERCproceedings.AmerenMissourialsofiledacomplaint withFERCagainstEntergyandEntergyServices,Inc.in April2008tochallengetheadditionalcharges.InJanuary 2010,FERCissuedarulingthatEntergymaynotpassthe additionalchargesontoAmerenMissouri.InFebruary 2010,EntergyfiledarequestforrehearingoftheJanuary 2010ruling.AmerenMissourihasnotrecordedany prospectiverefundforadditionalchargespaidtoEntergyas aresultoftheFERCorders.TheLPSCappealedFERCsordersregardingLPSCscomplaintagainstEntergyServices,Inc.totheUnited StatesCourtofAppealsfortheDistrictofColumbia.InApril 2008,thatcourtorderedfurtherFERCproceedings regardingLPSCscomplaint.ThecourtorderedFERCto explainitspreviousdenialofretroactiverefundsandthe implementationofprospectivecharges.FERCsdecisionon remandoftheretroactiveimpactoftheseissuescouldhave afinancialimpactonAmerenMissouri.AmerenMissouriis unabletopredicthowFERCwillrespondtothecourts decisions.AmerenMissouriestimatesthatitcouldincuran additionalexpenseofupto$25millionifFERCorders retroactiveapplicationfortheyears2001to2005.Ameren Missouribelievesthatthelikelihoodofincurringany expenseisnotprobable,andthereforenoliabilityhasbeen recordedasofDecember31,2011.AmerenMissouriplans toparticipateinanyproceedingthatFERCinitiatesto addressthecourtsdecisions.COLAandEarlySitePermitIn2008,AmerenMissourifiledanapplicationwiththeNRCforaCOLAforanew1,600-megawattnuclearunitat AmerenMissourisexistingCallawayCounty,Missouri, nuclearenergycentersite.In2009,AmerenMissouri suspendeditseffortstobuildanewnuclearunitatits existingMissourinuclearenergycentersite,andtheNRC suspendedreviewoftheCOLA.AmerenMissouriisconsideringfilinganapplicationtoobtainanearlysitepermitfromtheNRCfortheCallaway energycentersite.Anearlysitepermitapprovesaspecific locationforanuclearfacility;however,additionallicenses wouldberequiredforthespecifictypeanddesignof nuclearfacilitytobebuiltatthatsite.Anearlysitepermit doesnotauthorizeconstructionofaplant.Anearlysite permitisvalidfor20yearsandcouldberenewedforupto anadditional20years.Attemptstopasslegislationto maintainanoptionfornuclearpowerinthestateof Missouribyrecoveringthecostsoftheearlysitepermit, subjecttoappropriateconsumerprotections,werenot successfulduring2011.However,supportfornuclear powerexistsinthestateofMissouri,whichcouldleadto thepassageofanearlysitepermitrecoverymechanismin futurelegislativesessions.AmerenMissourispursuitofan earlysitepermitisdependentuponenactmentofa legislativeframeworkensuringcostrecovery.AsofDecember31,2011,AmerenMissourihadcapitalized$69millionrelatingtoitseffortstoconstructa newnuclearunit.Alloftheseincurredcostswillremain capitalizedwhilemanagementassessesoptionsto maximizethevalueofitsinvestmentinthisproject.If effortsarepermanentlyabandonedormanagement concludesitisprobablethecostsincurredwillbe disallowedinrates,achargetoearningswouldbe recognizedintheperiodinwhichthatdeterminationwas
made.Pumped-storageHydroelectricEnergyCenterRelicensingInJune2008,AmerenMissourifiledarelicensingapplicationwithFERCtooperateitsTaumSaukpumped-storagehydroelectricenergycenterforanother40years.
TheexistingFERClicenseexpiredonJune30,2010.On July2,2010,AmerenMissourireceivedalicenseextension thatallowsTaumSauktocontinueoperationsuntilFERC issuesanewlicense.FERCisreviewingtherelicensing application.AFERCorderisexpectedin2012or2013.
AmerenMissouricannotpredicttheultimateoutcomeof theapplication.
109 RegulatoryAssetsandLiabilitiesInaccordancewithauthoritativeaccountingguidanceregardingaccountingfortheeffectsofcertaintypesofregulation,AmerenMissouriandAmerenIllinoisdefercertaincostspursuanttoactionsofregulatorsorbasedontheexpectedabilityto recoversuchcostsinrateschargedtocustomers.AmerenMissouriandAmerenIllinoisalsodefercertainamountsbecauseof actionsofregulatorsorbecauseoftheexpectationthatsuchamountswillbereturnedtocustomersinfuturerates.The followingtablepresentsAmerens,AmerenMissourisandAmerenIllinoisregulatoryassetsandregulatoryliabilitiesat December31,2011,and2010:20112010 Ameren (a)Ameren Missouri AmerenIllinoisAmeren (a)Ameren Missouri Ameren IllinoisCurrentregulatoryassets:Under-recoveredFAC (b)(c)...............................$83$83$-$158$158$-Under-recoveredIllinoiselectricpowercosts (b)(d)............4-44-4Under-recoveredPGA (b)(d)...............................8532-2MTMderivativelosses (e)................................1202129910321254Totalcurrentregulatoryassets
.............................$215$109$306$267$179$260Noncurrentregulatoryassets:Pensionandpostretirementbenefitcosts (f).................$878$382$496$555$251$304Incometaxes (g).......................................23923452302255Assetretirementobligation (h)............................6-6936Callawaycosts (b)(i)....................................4848-5151-Unamortizedlossonreacquireddebt (b)(j)...................472126532528Recoverablecosts-contaminatedfacilities (k)...............102-102127-127MTMderivativelosses (e)................................10013878514249 SO 2emissionallowancessaletracker (l)....................66-1212-Stormcosts (m).......................................1616-2323-Demand-sidecosts (n)..................................7070-3939-Reserveforworkerscompensationliabilities (o)..............13761486Creditfacilitiesfees (p)..................................1010-1212-Employeeseparationcosts (q)............................633862Commonstockissuancecosts (r).........................1010-1212-Constructionaccountingforpollutioncontrolequipment (b)(s)....2525-44-Other (t).............................................27101729920Totalnoncurrentregulatoryassets
..........................$1,603$855$748$1,263$694$747Currentregulatoryliabilities:Over-recoveredFAC (u)..................................$12$12$-$-$-$-Over-recoveredIllinoiselectricpowercosts (d)...............66-6662-62Over-recoveredPGA (d).................................9-912111MTMderivativegains (v)................................4645125223Totalcurrentregulatoryliabilities
...........................$133$57$76$99$23$76Noncurrentregulatoryliabilities:Incometaxes (w).......................................$48$44$4$54$48$6Removalcosts (x)......................................1,2697195501,177655522Assetretirementobligation (h)............................2929----MTMderivativegains (v)................................8247820137Baddebtrider (y)......................................10-105-5Pensionandpostretirementbenefitcoststracker (z)...........3838-4545-Energyefficiencyrider (aa)...............................24-2413-13 Other (bb)............................................22-55-Totalnoncurrentregulatoryliabilities
........................$1,502$836$666$1,319$766$553(a)Includesintercompanyeliminations.(b)Theseassetsearnareturn.
(c)Under-recoveredfuelcostsforperiodsfromJuly2009throughDecember2011.Specificaccumulationperiodsaggregatetheunder-recoveredcostsoverfourmonths,anyrelatedadjustmentsoccuroverthefollowingfourmonths,andthenrecoveryfromcustomersoccursoverthenext eightmonths.(d)Costsunder-orover-recoveredfromutilitycustomers.Amountswillberecoveredfrom,orrefundedto,customerswithinoneyearofthe deferral.(e)Deferralofcommodity-relatedderivativeMTMlosses,aswellastheMTMlossesonfinancialcontractsenteredintobyAmerenIllinoiswithMarketingCompany.
110 (f)Thesecostsarebeingamortizedinproportiontotherecognitionofpriorservicecosts(credits),transitionobligations(assets),andactuari allosses(gains)attributabletoAmerenspensionplanandpostretirementbenefitplans.SeeNote11-RetirementBenefitsforadditional
information.(g)Offsettocertaindeferredtaxliabilitiesforexpectedrecoveryoffutureincometaxeswhenpaid.SeeNote13-IncomeTaxesforamortization period.(h)RecoverableorrefundableremovalcostsforAROsatourrate-regulatedoperations,includingnetrealizedandunrealizedgainsandlossesrelatedtothenucleardecommissioningtrustfundinvestments.SeeNote1-SummaryofSignificantAccountingPolicies-AssetRetirement
Obligations.(i)AmerenMissourisCallawayenergycenteroperationsandmaintenanceexpenses,propertytaxes,andcarryingcostsincurredbetweentheplantin-servicedateandthedatetheplantwasreflectedinrates.Thesecostsarebeingamortizedovertheremaininglifeoftheplantscurrent operatinglicense(through2024).(j)Lossesrelatedtoreacquireddebt.Theseamountsarebeingamortizedoverthelivesoftherelatednewdebtissuancesortheremaininglivesoftheolddebtissuancesifnonewdebtwasissued.(k)Therecoverableportionofaccruedenvironmentalsiteliabilities,primarilycollectedfromelectricandnaturalgascustomersthroughICC-approvedcostrecoveryriders.Theperiodofrecoverywilldependonthetimingofactualexpenditures.SeeNote15-Commitmentsand Contingenciesforadditionalinformation.(l)AregulatorytrackingmechanismforgainsonsalesofSO 2emissionallowances,netofSO 2premiumsincurredunderthetermsofcoalprocurementcontracts,plusanySO 2discountsreceivedundersuchcontracts,asapprovedinaMoPSCorder.TheMoPSCsMay2010electricrateorderdiscontinuedanyfuturedeferralsunderthistrackingmechanism.TheMoPSCsJuly2011rateorderapprovedtheamortizationof thesecoststhroughJuly2013.(m)ActualstormcostsinatestyearthatexceedtheMoPSCstaffsnormalizedstormcostsforratepurposes.The2006stormcostsarebeingamortizeduntilJuly2013.The2008stormcostsarebeingamortizedoverfiveyears,beginningonMarch1,2009.Inaddition,thebalance includesJanuary2007icestormcoststhatAmerenMissouriwillrecoveroverfiveyears,beginninginMarch2009,asapprovedbytheJanuary 2009MoPSCelectricrateorder.The2009stormcostsarebeingamortizedoverfiveyears,beginninginJuly2010,asapprovedbytheMay 2010MoPSCelectricrateorder.(n)Demand-sidecosts,includingthecostsofdeveloping,implementingandevaluatingcustomerenergyefficiencyanddemandresponseprograms.CostsincurredfromMay2008throughSeptember2008arebeingamortizedover10years,beginninginMarch2009.Costs incurredfromOctober2008throughDecember2009arebeingamortizedoversixyears,beginninginJuly2010.CostsincurredfromJanuary 2010throughFebruary2011arebeingamortizedoversixyears,beginninginAugust2011.Theamortizationperiodforthecostsincurredafter February2011willbedeterminedinAmerenMissourispendingelectricratecase.(o)Reserveforworkerscompensationclaims.
(p)AmerenMissouriscostsincurredtoenterintoandmaintainthe2009multiyearandsupplementalcreditagreements,priortotheirterminationin2010.Thesecostsarebeingamortizedovertwoyears,beginninginJuly2010,asapprovedbytheMay2010MoPSCelectricrateorder.
Thesecostsarebeingamortizedtoconstructionworkinprogress,whichwillbesubsequentlydepreciatedwhenassetsareplacedintoservice.(q)Costincurredforthevoluntaryandinvoluntaryseparationprograms.The2009AmerenMissouri-relatedcostsarebeingamortizedoverthreeyears,beginninginJuly2010,asapprovedbytheMay2010MoPSCelectricrateorder.The2009AmerenIllinois-relatedcostsarebeing amortizedoverthreeyears,beginninginMay2010,asapprovedbytheApril2010ICCelectricandnaturalgasrateorder.(r)TheMoPSCsMay2010electricrateorderallowedAmerenMissouritorecoveritsportionofAmerensSeptember2009commonstockissuancecosts.Thesecostsarebeingamortizedoverfiveyears,beginninginJuly2010.(s)TheMoPSCsMay2010electricrateorderallowedAmerenMissouritocontinuerecordinganallowanceforfundsusedduringconstructionforpollutioncontrolequipmentatitsSiouxenergycenteruntilthecostofthatequipmentisplacedincustomerrates.Theamortizationofthese costswillbeovertheexpectedlifeoftheSiouxenergycenter.(t)IncludescostsrelatedtoAmerenIllinoisdeliveryserviceratecasesthatresultedinordersin2008and2010aswellasthenaturalgasdeliveryserviceratecasethatresultedinanorderinJanuary2012.Thenaturalgascostsassociatedwiththe2008ratecasewillbeamortizeduntil September2013.The2010ratecasecostsarebeingamortizedoveratwo-yearperiod,beginninginMay2010.The2012naturalgasratecase costswillbeamortizedoveratwoyearperiod,beginninginJanuary2012.TheAmerenIllinoistotalalsoincludesaportionoftheunamortized debtfairvalueadjustmentrecordeduponAmerensacquisitionofIP.Thisportionisbeingamortizedovertheremaininglifeoftherelateddebt, beginningwiththeexpirationoftheelectricratefreezeinIllinoisonJanuary1,2007.TheAmerenIllinoistotalalsoincludesAmerenIllinois Mergerintegrationandoptimizationcosts.Thesecostswillbeamortizedoverfouryears,beginninginJanuary2012.AtAmerenMissouri,the balanceincludescostassociatedwiththeretirementofrenewableenergycreditsandsolarrebatestofulfillAmerenMissourisrenewable energyportfoliorequirement.TheamortizationperiodforthesecostswillbedeterminedinAmerenMissourispendingelectricratecase.The AmerenMissouribalancealsoincludesaregulatorytrackingmechanismforthedifferencebetweenthelevelofvegetationmanagementand infrastructureinspectioncostsincurredbyAmerenMissouriunderGAAPandthelevelofsuchcostsincludedinelectricrates.Ameren MissourisvegetationmanagementandinfrastructureinspectioncostsfromJuly2011throughDecember2011weremorethantheamount allowedinbaserates.TheamortizationperiodforthesecostswillbedeterminedinAmerenMissourispendingelectricratecase.(u)Over-recoveredfuelcostsfromMarch2009throughSeptember2009asorderedbytheMoPSCinApril2011.CustomerrefundswillconcludeinMay2012.(v)Deferralofcommodity-relatedderivativeMTMgains.
(w)Unamortizedportionofinvestmenttaxcreditandfederalexcessdeferredtaxes.SeeNote13-IncomeTaxesforamortizationperiod.
(x)Estimatedfundscollectedfortheeventualdismantlingandremovalofplantfromservice,netofsalvagevalue,uponretirementrelatedtoourrate-regulatedoperations.SeediscussioninNote1-SummaryofSignificantAccountingPolicies-AssetRetirementObligations.(y)AregulatorytrackingmechanismforthedifferencebetweenthelevelofbaddebtexpenseincurredbyAmerenIllinoisunderGAAPandthelevelofsuchcostsincludedinelectricandnaturalgasrates.Theover-recoveryrelatingto2010isbeingrefundedtocustomersfromJune2011 throughMay2012.Theover-recoveryrelatingto2011willberefundedtocustomersfromJune2012throughMay2013.(z)AregulatorytrackingmechanismforthedifferencebetweenthelevelofpensionandpostretirementbenefitcostsincurredbyAmerenMissouriunderGAAPandthelevelofsuchcostsbuiltintoelectricrates.The2008costsarebeingamortizedthroughFebruary2014.The2009costsare 111 beingamortizedthroughJune2015.The2010costsassignedtothenaturalgasandelectricbusinessesarebeingamortizedthroughFebruary2016andJuly2016,respectively.The2011costswillbedeterminedinAmerenMissourispendingelectricratecase.(aa)AregulatorytrackingmechanismthatallowsAmerenIllinoistorecoveritselectricandnaturalgascostsassociatedwithdeveloping,implementingandevaluatingcustomerenergyefficiencyanddemandresponseprograms.Thisover-recoverywillberefundedtocustomers overthefollowing12monthsaftertheplanyear.(bb)BalanceincludesaregulatorytrackingmechanismforthedifferencebetweenthelevelofvegetationmanagementandinfrastructureinspectioncostsincurredbyAmerenMissouriunderGAAPandthelevelofsuchcostsincludedinelectricrates.AmerenMissourisvegetation managementandinfrastructureinspectioncostsfromJuly2010throughFebruary2011werelessthantheamountallowedinbaserates.The over-recoveryincurredduringthattimeperiodisbeingamortizedoverthreeyearsbeginninginAugust2011.Thebalancealsoincludesthe deferralofgainsonemissionallowancevintageswapsAmerenMissourienteredintoduring2005.Thebalanceofthisgainwasimmaterialat theendof2011.AmerenMissouriandAmerenIllinoiscontinuallyassesstherecoverabilityoftheirregulatoryassets.Undercurrentaccountingstandards,regulatoryassetsarechargedtoearningswhenitisnolongerprobablethatsuchamountswillbe recoveredthroughfuturerevenues.Totheextentthatpaymentsofregulatoryliabilitiesarenolongerprobable,theamounts arecreditedtoearnings.NOTE3-PROPERTYANDPLANT,NETThefollowingtablepresentspropertyandplant,net,foreachoftheAmerenCompaniesatDecember31,2011and2010:
Ameren (a)(b)Ameren Missouri (b)AmerenIllinoisGenco 2011:Propertyandplant,atoriginalcost:
Electric..............................................................$24,256$14,986$4,600$3,370Gas.................................................................1,7463851,361-Other...............................................................466113913926,46815,4846,0523,409Less:Accumulateddepreciationandamortization
...............................9,4296,2761,3641,37717,0399,2084,6882,032Constructionworkinprogress:Nuclearfuelinprocess
..................................................255255--Other...............................................................83349582199Propertyandplant,net
....................................................$18,127$9,958$4,770$2,231 2010:Propertyandplant,atoriginalcost:
Electric..............................................................$24,069$14,745$4,436$3,572Gas.................................................................1,6613741,286-Other...............................................................42491614826,15415,2105,7833,620Less:Accumulateddepreciationandamortization
...............................9,1946,0521,2501,51816,9609,1584,5332,102Constructionworkinprogress:Nuclearfuelinprocess..................................................259259--
Other...............................................................63435843146Propertyandplant,net....................................................$17,853$9,775$4,576$2,248(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesaswellasintercompanyeliminations.(b)AmountsinAmerenandAmerenMissouriincludetwoelectricgenerationCTsundertwoseparatecapitalleaseagreements.Thegrossassetvalueofthoseagreementswas$229millionand$228millionatDecember31,2011and2010,respectively.Thetotalaccumulateddepreciation associatedwiththetwoCTswas$52millionand$46millionatDecember31,2011and2010,respectively.ThefollowingtableprovidesaccruedcapitalexpendituresatDecember31,2011,2010,and2009,whichrepresentnoncashinvestingactivityexcludedfromthestatementsofcashflows:
Ameren (a)Ameren Missouri AmerenIllinoisGenco 2011....................................................................$107$73$18$13 2010....................................................................7953158 2009....................................................................143862923(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.
112 NOTE4-SHORT-TERMDEBTANDLIQUIDITYTheliquidityneedsoftheAmerenCompaniesaretypicallysupportedthroughtheuseofavailablecash,short-termintercompanyborrowings,drawingsundercommittedbankcreditfacilities,orcommercialpaperissuances.Thefollowingtablesummarizestheborrowingactivityandrelevantinterestratesunderthe2010MissouriCreditAgreementdescribedbelowfortheyearendedDecember31,2011,andexcludeslettersofcreditissuedunderthecredit
agreement:2010MissouriCreditAgreement($800million)
Ameren (Parent)AmerenMissouriTotal 2011:Averagedailyborrowingsoutstandingduring2011
.........................................$105$-$105Outstandingcreditfacilityborrowingsatperiodend
........................................---Weighted-averageinterestrateduring2011
...............................................2.30%-2.30%Peakcreditfacilityborrowingsduring2011 (a).............................................$340$-$340Peakinterestrateduring2011
.........................................................4.30%-4.30%
2010:Averagedailyborrowingsoutstandingduring2010 (b).......................................$195$-$195Outstandingcreditfacilityborrowingsatperiodend........................................340-340Weighted-averageinterestrateduring2010 (b).............................................2.31%-2.31%Peakcreditfacilityborrowingsduring2010 (a)(b)............................................$380$-$380Peakinterestrateduring2010 (b).......................................................2.31%-2.31%(a)Thetimingofpeakcreditfacilityborrowingsvariesbycompanyandthereforetheamountspresentedbycompanymightnotequalthetotalpeakcreditfacilityborrowingsfortheperiod.ThesimultaneouspeakcreditfacilityborrowingsbytheAmerenCompaniesunderallcredit facilitiesduring2011and2010were$460millionand$925million,respectively.(b)CalculatedfromtheSeptember10,2010,inceptiondatethroughDecember31,2010.Thefollowingtablesummarizestheborrowingactivityandrelevantinterestratesunderthe2010GencoCreditAgreementdescribedbelowfortheyearendedDecember31,2011:2010GencoCreditAgreement($500million)
Ameren(Parent)GencoTotal 2011:Averagedailyborrowingsoutstandingduring2011
..........................................$-$41$41Outstandingcreditfacilityborrowingsatperiodend
.........................................---Weighted-averageinterestrateduring2011
................................................-2.30%2.30%Peakcreditfacilityborrowingsduring2011 (a)..............................................$-$100$100Peakinterestrateduring2011
..........................................................-2.31%2.31%
2010:Averagedailyborrowingsoutstandingduring2010 (b)........................................$36$54$90Outstandingcreditfacilityborrowingsatperiodend.........................................-100100Weighted-averageinterestrateduring2010 (b)..............................................2.30%2.31%2.31%Peakcreditfacilityborrowingsduring2010 (a)(b).............................................$385$100$385Peakinterestrateduring2010 (b).........................................................2.31%2.31%2.31%(a)Thetimingofpeakcreditfacilityborrowingsvariesbycompany,andthereforetheamountspresentedbycompanymightnotequalthetotalpeakcreditfacilityborrowingsfortheperiod.ThesimultaneouspeakcreditfacilityborrowingsbytheAmerenCompaniesunderallcredit facilitiesduring2011and2010were$460millionand$925million,respectively.(b)CalculatedfromtheSeptember10,2010,inceptiondatethroughDecember31,2010.NeitherAmerennorAmerenIllinoisborrowedunderthe2010IllinoisCreditAgreementduringtheyearsendedDecember31,2011,and2010,respectively.2010CreditAgreementsAmerenandcertainofitssubsidiariesenteredintomultiyearcreditfacilityagreementswithalargeanddiversegroupoflendersin2010.Thesefacilitiescumulativelyprovide$2.1billionofcreditthroughSeptember10,2013.Thefacilitiescurrentlyinclude25international,national,andregionallenders,withnolenderprovidingmorethan$125millionofcreditinaggregate.OnSeptember10,2010,AmerenandAmerenMissourienteredintothe$800million2010MissouriCreditAgreement.OnSeptember10,2010,AmerenandGencoenteredintothe$500million2010GencoCreditAgreement.AlsoonSeptember10,2010,AmerenandAmerenIllinois,assuccessorcompanytoCIPS,CILCOandIP,enteredintothe$800million2010IllinoisCreditAgreement.
113 Theobligationsofeachborrowerundertherespective2010CreditAgreementstowhichitisapartyareseveralandnotjoint,and,exceptunderlimitedcircumstancesrelatingtoexpensesandindemnities,theobligationsofAmerenMissouri, AmerenIllinoisandGencoundertherespective2010CreditAgreementsarenotguaranteedbyAmerenoranyothersubsidiary ofAmeren.Themaximumaggregateamountavailabletoeachborrowerundereachfacilityisshowninthefollowingtable (suchamountbeingsuchborrowersBorrowingSublimit):
2010 Missouri Credit Agreement 2010 Genco Credit Agreement 2010 Illinois Credit Agreement Ameren..........................................................................$500$500$300AmerenMissouri...................................................................500(a)(a)AmerenIllinois.....................................................................(a)(a)800 Genco...........................................................................(a)500(a)(a)Notapplicable.Amerenhastheoptiontoseekadditionalcommitmentsfromexistingornewlenderstoincreasethetotalfacility sizeofthe2010CreditAgreementstothefollowing maximumamounts:2010MissouriCreditAgreement-
$1.0billion;2010GencoCreditAgreement-$625million; and2010IllinoisCreditAgreement-$1.0billion.Eachof the2010CreditAgreementswillmatureandexpireon September10,2013.InFebruary2011,AmerenIllinois receivedapprovalfromtheICCtoextendtheexpirationof itsBorrowingSublimitunderthe2010IllinoisCredit AgreementtoSeptember10,2013.InJune2011,Ameren MissourireceivedapprovalfromtheMoPSCtoextendthe expirationofitsborrowingsublimitunderthe2010 MissouriCreditAgreementtoSeptember10,2013.The principalamountofeachrevolvingloanowedbyaborrower underanyofthe2010CreditAgreementstowhichitisa partywillbedueandpayablenolaterthanSeptember10, 2013.Theobligationsofallborrowersunderthe2010CreditAgreementsareunsecured.Loansareavailableona revolvingbasisundereachofthe2010CreditAgreements andmayberepaidand,subjecttosatisfactionofthe conditionstoborrowing,reborrowedfromtimetotime.At theelectionofeachborrower,theinterestratesonsuch loanswillbethealternatebaserate(ABR)plusthemargin applicabletotheparticularborrowerand/ortheeurodollar rateplusthemarginapplicabletotheparticularborrower.
Theapplicablemarginswillbedeterminedbythe borrowerslong-termunsecuredcreditratingsor,ifnosuch ratingsarethenineffect,theborrowerscorporate/issuer ratingsthenineffect.Lettersofcreditinanaggregate undrawnfaceamountnottoexceed25%oftheapplicable aggregatecommitmentundertherespective2010Credit Agreementsarealsoavailableforissuancefortheaccount oftheborrowersthereunder(butwithinthe$2.1billion overallcombinedfacilityborrowinglimitationsofthe2010 CreditAgreements).The2010CreditAgreementsareusedtoborrowcash,toissuelettersofcredit,andtosupportborrowingsunder Amerens$500millioncommercialpaperprogram,Ameren Missouris$500millioncommercialpaperprogramand AmerenIllinois$500millioncommercialpaperprogram.
Anyofthe2010CreditAgreementsareavailabletoAmerentosupportborrowingsunderAmerenscommercialpaperprogram,subjecttoborrowingsublimits.The2010 MissouriCreditAgreementisavailabletosupport borrowingsunderAmerenMissouriscommercialpaper program,andthe2010IllinoisCreditAgreementisavailable tosupportborrowingsunderAmerenIllinoiscommercial paperprogram.AtDecember31,2011,Amerenhad
$148millionofcommercialpaperoutstandingand
$15millionoflettersofcreditoutstanding,andAmeren MissouriandAmerenIllinoishadnocommercialpaperor lettersofcreditoutstanding.Basedonoutstanding borrowingsandlettersofcreditissuedunderthe2010 CreditAgreementsasofDecember31,2011,aswellas commercialpaperoutstandingasofsuchdate,the aggregateamountofcreditcapacityavailableunderthe 2010CreditAgreementsatDecember31,2011,was
$1.9billion.$20MillionCreditFacility(Terminated)OnJune2,2010,Amerenenteredintoa$20millionrevolvingcreditfacility($20MillionFacility).Borrowings underthe$20MillionFacilityincurredinterestatarate equaltotheapplicableLIBORplus2.25%perannum.The obligationsofAmerenunderthe$20MillionFacilitywere unsecured.NosubsidiaryofAmerenwasapartyto, guarantorof,orborrowerunderthefacility.Amerenhadno outstandingborrowingsunderthefacilityasof December31,2011.Amerenterminatedthe$20Million FacilityinJanuary2012.Duringtheyearsended December31,2011and2010,Amerenhadaveragedaily balancesoutstandingof$20million,withaweighted-averageinterestrateof2.48%and2.54%,respectively.CommercialPaperAtDecember31,2011,and2010,Amerenhad$148millionand$269millionofcommercialpaper outstanding,respectively.Duringtheyearsended December31,2011and2010,Amerenhadaveragedaily commercialpaperbalancesoutstandingof$311millionand
$185millionwithaweighted-averageinterestrateof0.87%
and0.94%,respectively.Thepeakshort-termcommercial paperoutstandingduringtheyearsendedDecember31, 2011,and2010were$435millionand$366million, 114 respectively.Thepeakinterestrateforbothyearswas1.46%.During2010,thecommercialpaperwasissuedonly fromJulythroughDecember.IndebtednessProvisionsandOtherCovenantsTheinformationbelowpresentsasummaryoftheAmerenCompaniescompliancewithindebtedness provisionsandothercovenants.The2010CreditAgreementscontainconditionsaboutborrowingsandissuancesoflettersofcredit,includingthe absenceofdefaultorunmatureddefault,materialaccuracy ofrepresentationsandwarranties(excludingany representationaftertheclosingdateastotheabsenceof materialadversechangeandmateriallitigation),and obtainingrequiredregulatoryauthorizations.Inaddition, solelyasitrelatestoborrowingsunderthe2010Illinois CreditAgreement,itisaconditionforanysuchborrowing that,atthetimeofandaftergivingeffecttosuch borrowing,theborrowernotbeinviolationofanylimitation onitsabilitytoincurunsecuredindebtednesscontainedin itsarticlesofincorporation.The2010CreditAgreements alsocontainnonfinancialcovenants,includingrestrictions ontheabilitytoincurliens,totransactwithaffiliates,to disposeofassets,tomakeinvestmentsinortransferassets toitsaffiliates,andtomergewithotherentities.The2010CreditAgreementsrequireeachofAmeren,AmerenMissouri,AmerenIllinoisandGencotomaintain consolidatedindebtednessofnotmorethan65%ofits consolidatedtotalcapitalizationpursuanttoadefined calculationsetforthintheagreements.AsofDecember31, 2011,theratiosofconsolidatedindebtednesstototal consolidatedcapitalization,calculatedinaccordancewith theprovisionsofthe2010CreditAgreements,were47%,
48%,41%and45%,forAmeren,AmerenMissouri, AmerenIllinoisandGenco,respectively.Inaddition,under the2010GencoCreditAgreementandthe2010Illinois CreditAgreement,Amerenisrequiredtomaintainaratioof consolidatedfundsfromoperationsplusinterestexpenseto consolidatedinterestexpenseof2.0to1.0,tobecalculated quarterly,asoftheendofthemostrecentfourfiscal quartersthenending,inaccordancewiththe2010Genco CreditAgreementandthe2010IllinoisCreditAgreement,as applicable.AmerensratioasofDecember31,2011was5.1 to1.0.Failureofaborrowertosatisfyafinancialcovenant constitutesanimmediatedefaultundertheapplicable2010 CreditAgreement.The2010CreditAgreementscontaindefaultprovisions.Defaultsunderthe2010CreditAgreements applyseparatelytoeachborrower;excepthowever,thata defaultbyAmerenMissouri,AmerenIllinoisorGencounder anyofthe2010CreditAgreementswillalsoconstitutea defaultbyAmerenundersuchagreement.Defaultsinclude acrossdefaultwithrespecttoaborrowerunderthe applicable2010CreditAgreementsifthatborrowerdefaults underanyotheragreementcoveringoutstanding indebtednessofitselfandcertainsubsidiaries(otherthan projectfinancesubsidiariesandnonmaterialsubsidiaries)in excessof$25millionintheaggregate.AnydefaultofAmerenunderany2010CreditAgreementthatexistssolelyasaresultofadefaultbyAmerenMissouri,AmerenIllinois orGencothereunderwillnotconstituteadefaultunderany other2010CreditAgreementwhileAmerenisotherwisein compliancewithallofitsobligationsundersuchother2010 CreditAgreement.Further,adefaultattheAmerenlevel underany2010CreditAgreementdoesnottriggeradefault byAmerenMissouri,AmerenIllinoisorGencoundersuch
agreement.NoneoftheAmerenCompaniescreditfacilitiesorotherfinancingarrangementscontainscreditratingtriggers thatwouldcauseaneventofdefaultoraccelerationof repaymentofoutstandingbalances.AtDecember31,2011, managementbelievesthattheAmerenCompanieswerein compliancewiththeprovisionsandcovenantsoftheir creditfacilities
.MoneyPoolsAmerenhasmoneypoolagreementswithandamongitssubsidiariestocoordinateandprovideforcertainshort-termcashandworkingcapitalrequirements.Separate moneypoolsaremaintainedforutilityandnon-state-regulatedentities.AmerenServicesisresponsibleforthe operationandadministrationofthemoneypool
agreements.
UtilityAmerenMissouri,AmerenIllinoisandAmerenServicesmayparticipateintheutilitymoneypoolasbothlenders andborrowers.AmerenandAERGmayparticipateinthe utilitymoneypoolonlyaslenders.AmerenServices administerstheutilitymoneypoolandtracksinternaland externalfundsseparately.Internalfundsaresurplusfunds contributedtotheutilitymoneypoolfromparticipants.The primarysourcesofexternalfundsfortheutilitymoneypool arethe2010CreditAgreementsandthecommercialpaper programs.Thetotalamountavailabletothepool participantsfromtheutilitymoneypoolatanygiventimeis reducedbytheamountofborrowingsbyparticipants,but increasedtotheextentthatthepoolparticipantsadvance surplusfundstotheutilitymoneypoolorremitfundsfrom otherexternalsources.Theavailabilityoffundsisalso determinedbyfundingrequirementlimitsestablishedby regulatoryauthorizations.Theutilitymoneypoolwas establishedtocoordinateandtoprovideshort-termcash andworkingcapitalfortheparticipants.Participants receivingaloanundertheutilitymoneypoolagreement mustrepaytheprincipalamountofsuchloan,togetherwith accruedinterest.Therateofinterestdependsonthe compositionofinternalandexternalfundsintheutility moneypool.Therewerenoutilitymoneypoolborrowings duringtheyearsendedDecember31,2011and2010.Non-state-regulatedSubsidiariesAmeren,AmerenServices,AER,Genco,AERG,MarketingCompany,andothernon-state-regulatedAmeren subsidiarieshavetheability,subjecttoAmerenparent 115 companyauthorizationandapplicableregulatoryshort-termborrowingauthorizations,toaccessfundingfromthe2010 CreditAgreementsandthecommercialpaperprograms throughanon-state-regulatedsubsidiarymoneypool agreement.Allparticipantsmayborrowfromorlendtothe non-state-regulatedmoneypool,exceptforAmeren Services,whichmayparticipateonlyasaborrower.The totalamountavailabletothepoolparticipantsatanygiven timeisreducedbytheamountofborrowingsmadeby participants,butisincreasedtotheextentthatthepool participantsadvancesurplusfundstothenon-state-regulatedsubsidiarymoneypoolorremitfundsfromother externalsources.Thenon-state-regulatedsubsidiarymoney poolwasestablishedtocoordinateandtoprovideshort-termcashandworkingcapitalfortheparticipants.
Participantsreceivingaloanunderthenon-state-regulated subsidiarymoneypoolagreementmustrepaytheprincipal amountofsuchloan,togetherwithaccruedinterest.The rateofinterestdependsonthecompositionofinternaland externalfundsinthenon-state-regulatedsubsidiarymoney pool.Theaverageinterestrateforborrowingunderthe non-state-regulatedsubsidiarymoneypoolfortheyear endedDecember31,2011,was0.77%(2010-0.77%).SeeNote14-RelatedPartyTransactionsfortheamountofinterestincomeandexpensefromthemoney poolarrangementsrecordedbytheAmerenCompaniesfor theyearsendedDecember31,2011,2010,and2009.UnilateralBorrowingAgreementInaddition,aunilateralborrowingagreementexistsamongAmeren,AmerenIllinois,andAmerenServices, whichenablesAmerenIllinoistomakeshort-term borrowingsdirectlyfromAmeren.Theaggregateamountof borrowingsoutstandingatanytimebyAmerenIllinois undertheunilateralborrowingagreementandtheutility moneypoolagreement,togetherwithanyoutstanding AmerenIllinoisexternalcreditfacilityborrowingsor commercialpaperissuances,maynotexceed$500million, pursuanttoauthorizationfromtheICC.AmerenIllinoisis notcurrentlyborrowingundertheunilateralborrowing agreement.AmerenServicesisresponsibleforoperation andadministrationoftheunilateralborrowingagreement.NOTE5-LONG-TERMDEBTANDEQUITYFINANCINGSThefollowingtablepresentslong-termdebtoutstandingfortheAmerenCompaniesasofDecember31,2011,and2010:20112010Ameren(Parent):8.875%Seniorunsecurednotesdue2014
........................................................$425$425Less:Unamortizeddiscountandpremium
......................................................
(1)(2)Long-termdebt,net
.....................................................................$424$423AmerenMissouri:Seniorsecurednotes: (a)5.25%Seniorsecurednotesdue2012
...........................................................$173$1734.65%Seniorsecurednotesdue2013
...........................................................
200 2005.50%Seniorsecurednotesdue2014
...........................................................
104 1044.75%Seniorsecurednotesdue2015
...........................................................
114 1145.40%Seniorsecurednotesdue2016
...........................................................
260 2606.40%Seniorsecurednotesdue2017
...........................................................
425 4256.00%Seniorsecurednotesdue2018 (b).........................................................
250 2505.10%Seniorsecurednotesdue2018
...........................................................
200 2006.70%Seniorsecurednotesdue2019 (b).........................................................
450 4505.10%Seniorsecurednotesdue2019
...........................................................
300 3005.00%Seniorsecurednotesdue2020
...........................................................
85 855.50%Seniorsecurednotesdue2034
...........................................................
184 1845.30%Seniorsecurednotesdue2037
...........................................................
300 3008.45%Seniorsecurednotesdue2039 (b).........................................................
350 350Environmentalimprovementandpollutioncontrolrevenuebonds:1992Seriesdue2022 (c)(d).....................................................................
47 4719935.45%Seriesdue2028 (e)................................................................
44 441998SeriesAdue2033 (c)(d)...................................................................
60 601998SeriesBdue2033 (c)(d)...................................................................
50 501998SeriesCdue2033 (c)(d)...................................................................
50 50Capitalleaseobligations:CityofBowlingGreencapitallease(PenoCreekCT)
................................................
69 74AudrainCountycapitallease(AudrainCountyCT)
..................................................
240 240Totallong-termdebt,gross
.................................................................
3,955 3,960Less:Unamortizeddiscountandpremium
......................................................
(5)(6)Less:Maturitiesduewithinoneyear
..........................................................
(178)(5)Long-termdebt,net
.....................................................................$3,772$3,949 116 20112010AmerenIllinois:Seniorsecurednotes:6.625%Seniorsecurednotesdue2011
..........................................................
$-$1508.875%Seniorsecurednotesdue2013 (f)(h).......................................................
150 1506.20%Seniorsecurednotesdue2016 (f).........................................................
54 546.25%Seniorsecurednotesdue2016 (g).........................................................
75 756.125%Seniorsecurednotesdue2017 (g)(i).......................................................
250 2506.25%Seniorsecurednotesdue2018 (g)(i)........................................................
337 3379.75%Seniorsecurednotesdue2018 (g)(i)........................................................
400 4006.125%Seniorsecurednotesdue2028 (g)........................................................
60 606.70%Seniorsecurednotesdue2036 (g).........................................................
61 616.70%Seniorsecurednotesdue2036 (f).........................................................
42 42Environmentalimprovementandpollutioncontrolrevenuebonds:6.20%Series1992Bdue2012 (j)................................................................
1 12000SeriesA5.50%due2014
................................................................
51 515.90%Series1993due2023 (j).................................................................
32 325.70%1994ASeriesdue2024 (k)...............................................................
36 361993SeriesC-15.95%due2026
...............................................................
35 351993SeriesC-25.70%due2026
...............................................................
8 81993SeriesB-1due2028 (d)...................................................................
17 175.40%1998ASeriesdue2028 (k)...............................................................
19 195.40%1998BSeriesdue2028 (k)...............................................................
33 33Fair-marketvalueadjustments
...................................................................
5 5Totallong-termdebt,gross
.................................................................
1,666 1,816Less:Unamortizeddiscountandpremium
......................................................
(8)(9)Less:Maturitiesduewithinoneyear
..........................................................
(1)(150)Long-termdebt,net
.....................................................................$1,657$1,657 Genco:Unsecurednotes:SeniornotesSeriesF7.95%due2032
...........................................................$275$275SeniornotesSeriesH7.00%due2018
..........................................................
300 300SeniornotesSeriesI6.30%due2020
...........................................................
250 250Totallong-termdebt,gross
.................................................................
825 825Less:Unamortizeddiscountandpremium
......................................................
(1)(1)Less:Maturitiesduewithinoneyear
..........................................................
--Long-termdebt,net
.....................................................................$824$824Amerenconsolidatedlong-termdebt,net
...........................................................$6,677$6,853(a)ThesenotesarecollaterallysecuredbyfirstmortgagebondsissuedbyAmerenMissouriundertheAmerenMissourimortgageindenture.Thenoteshaveafall-awaylienprovisionandwillremainsecuredonlyaslongasanyfirstmortgagebondsissuedundertheAmerenMissouri mortgageindentureremainoutstanding.Redemption,purchase,ormaturityofallfirstmortgagebonds,includingfirstmortgagebonds currentlyoutstandingandanythatmaybeissuedinthefuture,wouldresultinareleaseofthefirstmortgagebondscurrentlysecuringthese notes,atwhichtimethesenoteswouldbecomeunsecuredobligations.BasedontheAmerenMissourifirstmortgagebondsandsenior securednotescurrentlyoutstanding,andassumingnoearlyretirementofanyseriesofsuchsecuritiesinfull,wedonotexpectthefirst mortgagebondlienprotectionassociatedwiththesenotestofallawayuntil2039.(b)AmerenMissourihasagreed,duringthelifeofthesenotes,nottooptionallyredeem,purchaseorotherwiseretireinfullitsfirstmortgagebonds.AmerenMissourihasalsoagreedtopreventafirstmortgagebondreleasedatefromoccurringaslongasanyofthe8.45%Senior securednotesdue2039remainoutstanding.(c)ThesebondsaresecuredbyfirstmortgagebondsissuedbyAmerenMissouriundertheAmerenMissourimortgageindentureandhaveafall-awaylienprovisionsimilartothatofthecompanysseniorsecurednotes.Thebondsarealsobackedbyaninsuranceguaranteepolicy.(d)Interestrates,andperiodsduringwhichsuchratesapply,varydependingonourselectionofdefinedratemodes.Maximuminterestratescouldrangeupto18%dependingontheseriesofbonds.Theaverageinterestratesfor2011and2010wereasfollows:
2011 2010AmerenMissouri1992Series
............0.34%0.47%AmerenMissouri1998SeriesA
..........0.69%0.71%AmerenMissouri1998SeriesB
..........0.68%0.73%AmerenMissouri1998SeriesC
..........0.69%0.74%AmerenIllinois1993SeriesB-1
..........0.28%0.59%(e)ThesebondsarefirstmortgagebondsissuedbyAmerenMissouriundertheUEmortgagebondindentureandaresecuredbysubstantiallyallAmerenMissouripropertyandfranchises.Thebondsarecallableat100%ofparvalue.
117 (f)ThesenotesarecollaterallysecuredbyfirstmortgagebondsissuedbyAmerenIllinoisundertheCILCOmortgageindenture.Thenoteshaveafall-awaylienprovisionandwillremainsecuredonlyaslongasanyseriesoffirstmortgagebondsissuedundertheCILCOmortgageindenture remainoutstanding.Redemption,purchase,ormaturityofallfirstmortgagebonds,includingfirstmortgagebondscurrentlyoutstandingand anythatmaybeissuedinthefuture,wouldresultinareleaseofthefirstmortgagebondscurrentlysecuringthesenotes,atwhichtimethese noteswouldbecomeunsecuredobligations.BasedontheCILCOfirstmortgagebondsandseniorsecurednotescurrentlyoutstanding,and assumingnoearlyretirementofanyseriesofsuchsecuritiesinfull,wedonotexpectthefirstmortgagebondlienprotectionassociatedwith thesenotestofallawayuntil2023.(g)ThesenotesarecollaterallysecuredbymortgagebondsissuedbyAmerenIllinoisundertheAmerenIllinoismortgageindenture.Thenoteshaveafall-awaylienprovisionandwillremainsecuredonlyaslongasanyseriesoffirstmortgagebondsissuedundertheAmerenIllinois mortgageindentureremainoutstanding.Redemption,purchase,ormaturityofallmortgagebonds,includingfirstmortgagebondscurrently outstandingandanythatmaybeissuedinthefuture,wouldresultinareleaseofthemortgagebondscurrentlysecuringthesenotes,atwhich timethesenoteswouldbecomeunsecuredobligations.BasedontheAmerenIllinoismortgagebondsandseniorsecurednotescurrently outstanding,andassumingnoearlyretirementofanyseriesofsuchsecuritiesinfull,wedonotexpectthemortgagebondlienprotection associatedwiththesenotestofallawayuntil2028.(h)AmerenIllinoishasagreed,duringthelifeofthesenotes,nottooptionallyredeem,purchaseorotherwiseretireinfullitsCILCOfirstmortgage bonds.(i)AmerenIllinoishasagreed,duringthelifeofthesenotes,nottooptionallyredeem,purchaseorotherwiseretireinfullitsAmerenIllinoismortgagebonds.(j)ThesebondsarefirstmortgagebondsissuedbyAmerenIllinoisundertheCILCOmortgageindentureandaresecuredbysubstantiallyallpropertyoftheformerCILCO.Thebondsarecallableat100%ofparvalue.(k)ThesebondsaremortgagebondsissuedbyAmerenIllinoisundertheAmerenIllinoismortgageindentureandaresecuredbysubstantiallyallpropertyoftheformerIPandCIPS.Thebondsarecallableat100%ofparvalue.Thebondsarealsobackedbyaninsuranceguaranteepolicy.Thefollowingtablepresentstheaggregatematuritiesoflong-termdebt,includingcurrentmaturities,fortheAmerenCompaniesatDecember31,2011:
Ameren (Parent)(a)Ameren Missouri (a)Ameren Illinois (a)(b)Genco (a)Ameren Consolidated 2012..........................................$-$178$1$-$179 2013..........................................-205150-355 2014..........................................42510951-585 2015..........................................-120--120 2016..........................................-266129-395 Thereafter......................................-3,0771,3308255,232 Total..........................................$425$3,955$1,661$825$6,866(a)Excludesunamortizeddiscountandpremiumof$1million,$5million,$8millionand$1millionatAmeren(Parent),AmerenMissouri,AmerenIllinoisandGenco,respectively.(b)Excludes$5millionrelatedtoAmerenIllinoislong-termdebtfair-marketvalueadjustments,whicharebeingamortizedtointerestexpenseovertheremaininglifeofthedebt.AlloftheAmerenCompaniesexpecttofundmaturitiesoflong-termdebt,short-termborrowings,creditfacilityborrowings,commercialpaperandcontractualobligationsthroughacombinationofcashflowfromoperationsandexternal financing.SeeNote4-Short-TermDebtandLiquidityforadiscussionofexternalfinancingavailability.AllclassesofAmerenMissourisandAmerenIllinoispreferredstockareentitledtocumulativedividendsandhavevotingrights.ThefollowingtablepresentstheoutstandingpreferredstockofAmerenMissouriandAmerenIllinoisthatisnotsubject tomandatoryredemption.Thepreferredstockisredeemable,attheoptionoftheissuer,atthepricesshownbelowasof December31,2011and2010:RedemptionPrice(pershare)20112010AmerenMissouri: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$80 118 RedemptionPrice(pershare)20112010AmerenIllinois: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%Series124,273.75shares
....................
100.00 12 127.75%Series4,542shares
....................
100.00 1 1 Total..........................................................$62$62TotalAmeren
......................................................$142$142(a)Intheeventofvoluntaryliquidation,$105.50.PursuanttotheAmerenIllinoisMerger:(i)everytwosharesofeachseriesofIPpreferredstockoutstanding immediatelypriortotheAmerenIllinoisMergerwere automaticallyconvertedintooneshareofanewlycreated seriesofAmerenIllinoispreferredstockhavingthesame paymentandredemptiontermsastheexistingseriesofIP preferredstock,excepttotheextentthatIPpreferred stockholdersexercisedtheirdissentersrightsin accordancewithIllinoislaw;and(ii)eachoutstandingshare ofCIPScommonandpreferredstockremained outstanding,excepttotheextentthatCIPSpreferred stockholdersexercisedtheirdissentersrightsin accordancewithIllinoislaw.Stockholdersholding8,337 sharesand423sharesofCIPSandIPpreferredstock, respectively,exercisedtheirdissentersrights.Inaddition,Amerenhas100millionsharesof$0.01parvaluepreferredstockauthorized,withnoshares outstanding.AmerenMissourihas7.5millionsharesof$1 parvaluepreferencestockauthorized,withnosuch preferencestockoutstanding.AmerenIllinoishas 2.6millionsharesofnoparvaluepreferredstock authorized,withnosharesoutstanding.
AmerenAFormS-3registrationstatementwasfiledbyAmerenwiththeSECinJune2011,authorizingtheofferingof 6millionadditionalsharesofitscommonstockunder DRPlus.SharesofcommonstocksoldunderDRPlusare,at Amerensoption,newlyissuedshares,treasuryshares,or sharespurchasedintheopenmarketorinprivately negotiatedtransactions.In2012,Amerenplansforshares tobepurchasedintheopenmarketforDRPlusandits 401(k)plan.UnderDRPlusandits401(k)plan,Ameren issued2.2million,3.0million,and3.2millionsharesof commonstockin2011,2010,and2009,respectively, whichwerevaluedat$65million,$80million,and
$82millionfortherespectiveyears.InFebruary2010,CILCORPcompletedacovenantdefeasanceofitsremainingoutstanding9.375%seniorbondsdue2029bydepositing$3millioninU.S.governmentobligationsandcashwiththeindenturetrustee.
Thisdepositwillbeusedsolelytosatisfytheprincipaland remaininginterestobligationsonthesebonds.In connectionwiththiscovenantdefeasance,thelienonthe capitalstockofCILCOsecuringthesebondswasreleased.AmerenMissouriInAugust2010,AmerenMissouriredeemedall$33millionofits$7.64Seriespreferredstockat$100.85 pershare,plusaccruedandunpaiddividends.InSeptember2010,AmerenMissouriredeemedall$66millionofits7.69%SeriesAsubordinateddeferrable interestdebenturesataredemptionpriceof102.692%of theprincipalamountplusaccruedinterest.AmerenIllinoisInJune2011,AmerenIllinois6.625%$150millionseniorsecurednotesmaturedandwererepaidandretired usingavailablecashonhand.InAugust2010,AmerenIllinois(formerlyCILCO)redeemedallofthe111,264outstandingsharesofits 4.50%Seriespreferredstockat$110pershareandallof the79,940sharesofits4.64%Seriespreferredstockat
$102pershare,plus,ineachcase,accruedandunpaid dividends.Thesepreferredshareswereredeemedin connectionwiththeAmerenIllinoisMerger.InSeptember2010,AmerenIllinois(formerlyCIPS)redeemedall$40millionofits7.61%Series1997-2first mortgagebondsataredemptionpriceof101.52%ofthe principalamount,plusaccruedinterest.Thesebondswere redeemedinconnectionwiththeAmerenIllinoisMerger.InSeptember2010,AmerencontributedtothecapitalofAmerenIllinois(formerlyIP),withoutthepaymentofany consideration,alloftheIPpreferredstockownedby Ameren($33million).IPcancelledthesepreferredshares.
Thistransactionwascompletedinconnectionwiththe AmerenIllinoisMerger.
119 SeeNote16-CorporateReorganizationandDiscontinuedOperationsforadditionalinformation.
GencoInNovember2010,Gencos$200million8.35%seniornotesmaturedandwereretiredwithavailablecashonhand.IndentureProvisionsandOtherCovenantsAmerenMissourisandAmerenIllinoisindenturesandarticlesofincorporationincludecovenantsandprovisionsrelatedtoissuancesoffirstmortgagebondsandpreferredstock.AmerenMissouriandAmerenIllinoisarerequiredtomeetcertain ratiostoissueadditionalfirstmortgagebondsandpreferredstock.However,afailuretoachievetheseratioswouldnotresult inadefaultunderthesecovenantsandprovisionsbutwouldrestrictthecompaniesabilitytoissuebondsorpreferredstock.
Thefollowingtablesummarizestherequiredandactualinterestcoverageratiosforinterestchargesanddividendcoverage ratiosandbondsandpreferredstockissuableasofDecember31,2011,atanassumedinterestrateof6%anddividendrate of7%.RequiredInterestCoverageRatio (a)ActualInterestCoverageRatioBondsIssuable (b)RequiredDividendCoverageRatio (c)ActualDividendCoverageRatioPreferredStock IssuableAmerenMissouri
....2.03.2$1,9712.584.9$1,610AmerenIllinois
......2.07.23,335 (d)1.53.1203(a)Coveragerequiredontheannualinterestchargesonfirstmortgagebondsoutstandingandtobeissued.Coverageisnotrequiredincertaincaseswhenadditionalfirstmortgagebondsareissuedonthebasisofretiredbonds.(b)Amountofbondsissuablebasedeitheronrequiredcoverageratiosorunfundedpropertyadditions,whicheverismorerestrictive.Theamountsshownalsoincludebondsissuablebasedonretiredbondcapacityof$89millionand$765millionatAmerenMissouriandAmerenIllinois, respectively.(c)Coveragerequiredontheannualdividendonpreferredstockoutstandingandtobeissued,asrequiredintherespectivecompanysarticlesof incorporation.(d)AmountofbondsissuablebyAmerenIllinoisbasedonunfundedpropertyadditionsandretiredbondssolelyundertheformerIPmortgage indenture.AmerensindenturedoesnotrequireAmerentocomplywithanyquantitativefinancialcovenants.The indenturedoes,however,includecertaincross-default provisions.Specifically,either(1)thefailurebyAmerento paywhendueanduponexpirationofanyapplicablegrace periodanyportionofanyAmerenindebtednessinexcessof
$25millionor(2)theaccelerationupondefaultofthe maturityofanyAmerenindebtednessinexcessof
$25millionunderanyindebtednessagreement,including the2010CreditAgreements,constitutesadefaultunderthe indenture,unlesssuchpastdueoraccelerateddebtis dischargedortheaccelerationisrescindedorannulled withinaspecifiedperiod.AmerenMissouri,AmerenIllinois,GencoandcertainothernonregistrantAmerensubsidiariesaresubjectto Section305(a)oftheFederalPowerAct,whichmakesit unlawfulforanyofficerordirectorofapublicutility,as definedintheFederalPowerAct,toparticipateinthe makingorpayingofanydividendfromanyfundsproperly includedincapitalaccount.Themeaningofthislimitation hasneverbeenclarifiedundertheFederalPowerActor FERCregulations.However,FERChasconsistently interpretedtheprovisiontoallowdividendstobepaidas longas(1)thesourceofthedividendsisclearlydisclosed, (2)thedividendsarenotexcessive,and(3)thereisnoself-dealingonthepartofcorporateofficials.Ataminimum, Amerenbelievesthatdividendscanbepaidbyits subsidiariesthatarepublicutilitiesfromnetincomeand retainedearnings.Inaddition,underIllinoislaw,Ameren Illinoismaynotpayanydividendontheirrespectivestock, unless,amongotherthings,theirrespectiveearningsand earnedsurplusaresufficienttodeclareandpayadividendafterprovisionismadeforreasonableandproperreserves,orunlessAmerenIllinoishasspecificauthorizationfromthe
ICC.AmerenIllinoisarticlesofincorporationrequireitsdividendpaymentsoncommonstocktobebasedonratios ofcommonstocktototalcapitalizationandotherprovisions relatedtocertainoperatingexpensesandaccumulationsof earnedsurplus.AmerenIllinoiscommittedtoFERCto maintainaminimum30%ratioofcommonstockequityto totalcapitalizationaftertheAmerenIllinoisMergerand AERGdistribution.AsofDecember31,2011,Ameren Illinoisratioofcommonstockequitytototalcapitalization was58%.GencosindentureincludesprovisionsthatrequireGencotomaintaincertaininterestcoverageand debt-to-capitalratiosinorderforGencotopaydividends,to makeprincipalorinterestpaymentsonsubordinated borrowings,tomakeloanstoorinvestmentsinaffiliates,or toincuradditionalexternal,third-partyindebtedness.The followingtablesummarizestheseratiosforthe12months endedandasofDecember31,2011:
Required Interest Coverage Ratio Actual Interest Coverage Ratio Required Debt-to-Capital Ratio Actual Debt-to-Capital Ratio Genco.....1.75 (a)/2.50 (b)4.360%(b)43%(a)Aminimuminterestcoverageratioof1.75isrequiredforGencotomakecertainrestrictedpayments,asdefined,including specifieddividendpaymentsand,principalandinterestpayments onsubordinatedborrowings.Asofthedateoftherestricted payment,theminimumratiomusthavebeenachievedforthe 120 mostrecentlyendedfourfiscalquartersandprojectedbymanagementtobeachievedforeachofthesubsequentfour six-monthperiods.Investmentsinthenon-state-regulated subsidiarymoneypoolandrepaymentsofnon-state-regulated subsidiarymoneypoolborrowingsarenotsubjecttothis incurrencetest.(b)Aminimuminterestcoverageratioof2.50forthemostrecentlyendedfourfiscalquartersandadebt-to-capitalratioofnogreater than60%arerequiredforGencotoincuradditional indebtedness,asdefined,otherthanpermittedindebtedness,as defined,forborrowedmoney.Theratiosmustbecomputedona proformabasisconsideringtheadditionalindebtednesstobe incurredandtherelatedinterestexpense.Non-state-regulated subsidiarymoneypoolborrowingsaredefinedaspermitted indebtednessandarenotsubjecttotheseincurrencetests.Credit facilityborrowings,includingborrowingsunderthe2010Genco CreditAgreement,andotherborrowingsfromthird-party, externalsourcesareincludedinthedefinitionofindebtedness andaresubjecttotheseincurrencetests.Gencosdebtincurrence-relatedratiorestrictionsunderitsindenturemaybedisregardedifbothMoodysandS&P reaffirmtheratingsofGencoinplaceatthetimeofthedebt incurrenceafterconsideringtheadditionalindebtedness.InorderfortheAmerenCompaniestoissuesecuritiesinthefuture,theywillhavetocomplywithallapplicable requirementsineffectatthetimeofanysuchissuances.Off-Balance-SheetArrangementsAtDecember31,2011,noneoftheAmerenCompanieshadanyoff-balance-sheetfinancingarrangements,other thanoperatingleasesenteredintointheordinarycourseof business.NoneoftheAmerenCompaniesexpecttoengage inanysignificantoff-balance-sheetfinancingarrangements inthenearfuture.NOTE6-OTHERINCOMEANDEXPENSESThefollowingtablepresentsthecomponentsofOtherIncomeandExpensesintheAmerenCompaniesstatementsofincomefortheyearsendedDecember31,2011,2010,and2009:201120102009 Ameren: (a)Miscellaneousincome:Interestanddividendincome
...........................................................
$4$5$2Interestincomeonindustrialdevelopmentrevenuebonds
.....................................
282828Allowanceforequityfundsusedduringconstruction
.........................................
345236 Other..............................................................................
3 55Totalmiscellaneousincome
..............................................................$69$90$71Miscellaneousexpense:
Donations..........................................................................
$8$19$12 Other..............................................................................
151411Totalmiscellaneousexpense
.............................................................$23$33$23AmerenMissouri:Miscellaneousincome:Interestanddividendincome
...........................................................
$2$3$1Interestincomeonindustrialdevelopmentrevenuebonds
.....................................
282828Allowanceforequityfundsusedduringconstruction
.........................................
305033 Other..............................................................................
1 21Totalmiscellaneousincome
..............................................................$61$83$63Miscellaneousexpense:
Donations..........................................................................
$3$8$3 Other..............................................................................
7 54Totalmiscellaneousexpense
.............................................................$10$13$7AmerenIllinois:Miscellaneousincome:Interestanddividendincome
...........................................................
$1$1$6Allowanceforequityfundsusedduringconstruction
.........................................
4 22 Other..............................................................................
2 44Totalmiscellaneousincome
..............................................................
$7$7$12Miscellaneousexpense:
Donations..........................................................................
$1$5$4 Other..............................................................................
5 86Totalmiscellaneousexpense
.............................................................
$6$13$10 Genco:Miscellaneousincome:
Other..............................................................................
$1$1$1Totalmiscellaneousincome
..............................................................
$1$1$1Miscellaneousexpense:
Other..............................................................................
$-$1$1Totalmiscellaneousexpense
.............................................................
$-$1$1(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.
121 NOTE7-DERIVATIVEFINANCIALINSTRUMENTSWeusederivativesprincipallytomanagetheriskofchangesinmarketpricesfornaturalgas,coal,diesel, power,anduranium.Suchpricefluctuationsmaycausethe
following:
anunrealizedappreciationordepreciationofourcontractedcommitmentstopurchaseorsellwhen purchaseorsalepricesunderthecommitmentsare comparedwithcurrentcommodityprices; marketvaluesofcoal,naturalgas,anduraniuminventoriesthatdifferfromthecostofthose commoditiesininventory;and actualcashoutlaysforthepurchaseofthesecommoditiesthatdifferfromanticipatedcashoutlays.Thederivativesthatweusetohedgetheserisksaregovernedbyourriskmanagementpoliciesforforward contracts,futures,options,andswaps.Ournetpositions arecontinuallyassessedwithinourstructuredhedging programstodeterminewhetherneworoffsetting transactionsarerequired.Thegoalofthehedgingprogram isgenerallytomitigatefinancialriskswhileensuringthat sufficientvolumesareavailabletomeetourrequirements.
Contractsweenterintoaspartofourriskmanagement programmaybesettledfinancially,settledbyphysical delivery,ornetsettledwiththecounterparty.ThefollowingtablepresentsopengrossderivativevolumesbycommoditytypeasofDecember31,2011and2010:Quantity(inmillions,exceptasindicated)
Commodity NPNS Contracts (a)CashFlow Hedges (b)Other Derivatives (c)DerivativesThatQualifyforRegulatoryDeferral (d)20112010201120102011201020112010Coal(intons)AmerenMissouri
....................
116 46 (e)(e)(e)(e)(e)(e)Genco............................
24 21 (e)(e)(e)(e)(e)(e)Other (f)............................
7 6 (e)(e)(e)(e)(e)(e)Ameren...........................
147 73 (e)(e)(e)(e)(e)(e)Fueloils(ingallons)(g)AmerenMissouri
....................(e)(e)(e)(e)(e)(e)53 80 Genco............................(e)(e)(e)(e)27 43 (e)(e)Other (f)............................(e)(e)(e)(e)9 12 (e)(e)Ameren...........................(e)(e)(e)(e)36 55 53 80Naturalgas(inmmbtu)AmerenMissouri
....................
8 13 (e)(e)9 2 19 21AmerenIllinois
.....................
42 85 (e)(e)(e)(e)174 173 Genco............................(e)(e)(e)(e)7 3 (e)(e)Other (f)............................(e)(e)(e)(e)1 16 (e)(e)Ameren...........................
50 98 (e)(e)17 21 193 194Power(inmegawatthours)AmerenMissouri
....................
1 2 (e)(e)1 1 6 5AmerenIllinois
.....................
11 (e)(e)(e)(e)(e)24 26 Genco............................(e)(e)(e)(e)-3 (e)(e)Other (f)............................
61 61 17 2 30 57 (9)(13)Ameren...........................
73 63 17 2 31 61 21 18Uranium(poundsinthousands)AmerenMissouri&Ameren
...........
5,553 5,810 (e)(e)(e)(e)148 185(a)ContractsthroughDecember2017,March2015,September2035,andOctober2024forcoal,naturalgas,power,anduranium,respectively,asofDecember31,2011.(b)ContractsthroughDecember2014forpowerasofDecember31,2011.
(c)ContractsthroughOctober2014,December2012,andDecember2015forfueloils,naturalgas,andpower,respectively,asofDecember31, 2011.(d)ContractsthroughOctober2014,October2016,May2032,andDecember2013forfueloils,naturalgas,power,anduranium,respectively,asofDecember31,2011.(e)Notapplicable.
(f)IncludesAERGcontractsforcoalandfueloils,MarketingCompanycontractsfornaturalgasandpower,andintercompanyeliminationsfor power.(g)Fueloilsconsistofheatingandcrudeoil.
122 Authoritativeaccountingguidanceregardingderivativeinstrumentsrequiresthatallcontractsconsideredtobe derivativeinstrumentsberecordedonthebalancesheetat theirfairvalues,unlesstheNPNSexceptionapplies.See Note8-FairValueMeasurementsfordiscussionofour methodsofassessingthefairvalueofderivative instruments.Manyofourphysicalcontracts,suchasour coalandpurchasedpowercontracts,qualifyfortheNPNS exceptiontoderivativeaccountingrules.Therevenueor expenserecordedinconnectionwithNPNScontractsis recognizedatthecontractpriceuponphysicaldelivery.IfwedeterminethatacontractmeetsthedefinitionofaderivativeandisnoteligiblefortheNPNSexception,we reviewthecontracttodetermineifitqualifiesforhedge accountingtreatment.Wealsoconsiderwhethergainsor lossesresultingfromsuchderivativesqualifyforregulatory deferral.Contractsthatqualifyforcashflowhedge accountingtreatmentarerecordedatfairvaluewith changesinfairvaluechargedorcreditedtoaccumulated OCIintheperiodinwhichthechangeoccurs,totheextent thehedgeiseffective.Totheextentthehedgeisineffective, therelatedchangesinfairvaluearechargedorcreditedto thestatementofincomeintheperiodinwhichthechange occurs.Whenthecontractissettledordelivered,thenet gainorlossisrecordedinthestatementofincome.Derivativecontractsthatqualifyforregulatorydeferralarerecordedatfairvalue,withchangesinfairvaluerecordedasregulatoryassetsorregulatoryliabilitiesintheperiodinwhichthechangeoccurs.AmerenMissouriand AmerenIllinoisbelievederivativegainsandlossesdeferred asregulatoryassetsandregulatoryliabilitiesareprobableof recoveryorrefundthroughfuturerateschargedto customers.Regulatoryassetsandregulatoryliabilitiesare amortizedtooperatingincomeasrelatedlossesandgains arereflectedinrateschargedtocustomers.Therefore, gainsandlossesonthesederivativeshavenoeffecton operatingincome.Certainderivativecontractsareenteredintoonaregularbasisaspartofourriskmanagementprogrambut donotqualifyfortheNPNSexception,hedgeaccounting,or regulatorydeferralaccounting.Suchcontractsarerecorded atfairvalue,withchangesinfairvaluechargedorcredited tothestatementofincomeintheperiodinwhichthe changeoccurs.Authoritativeaccountingguidancepermitscompaniestooffsetfairvalueamountsrecognizedfortherightto reclaimcashcollateral(areceivable)ortheobligationto returncashcollateral(aliability)againstfairvalueamounts recognizedforderivativeinstrumentsthatareexecutedwith thesamecounterpartyunderthesamemasternetting arrangement.TheAmerenCompaniesdidnotelecttoadopt thisguidanceforanyeligiblefinancialinstrumentsorother
items.ThefollowingtablepresentsthecarryingvalueandbalancesheetlocationofallderivativeinstrumentsasofDecember31,2011and2010:BalanceSheetLocationAmeren (a)Ameren Missouri AmerenIllinoisGenco 2011:Derivativeassetsdesignatedashedginginstruments Commoditycontracts:
Power................MTMderivativeassets
.................$8$(b)$(b)$-Otherassets
........................16---Totalassets
........................$24$-$-$-DerivativeliabilitiesdesignatedashedginginstrumentsCommoditycontracts:
Power................Otherdeferredcreditsandliabilities
......$1$-$-$-Totalliabilities
......................$1$-$-$-Derivativeassetsnotdesignatedashedginginstruments (c)Commoditycontracts:Fueloils..............MTMderivativeassets
.................$29$(b)$(b)$10Othercurrentassets
..................-17--Otherassets
........................86-1Naturalgas............MTMderivativeassets
.................6(b)(b)2Othercurrentassets
..................-21-Otherassets
........................--1-Power................MTMderivativeassets
.................72(b)(b)-Othercurrentassets
..................-30--Otherassets
........................99-77-Totalassets
........................$214$55$79$13 123 BalanceSheetLocationAmeren (a)Ameren Missouri AmerenIllinoisGencoDerivativeliabilitiesnotdesignatedashedginginstruments (c)Commoditycontracts:Fueloils..............MTMderivativeliabilities
...............$2$(b)$-$1Othercurrentliabilities
................-1--Naturalgas............MTMderivativeliabilities
...............106(b)902Othercurrentliabilities
................-13--Otherdeferredcreditsandliabilities
......921379-Power................MTMderivativeliabilities
...............53(b)9-MTMderivativeliabilities-affiliates
......(b)(b)200-Othercurrentliabilities
................-9--Otherdeferredcreditsandliabilities
......26-8-UraniumOtherdeferredcreditsandliabilities
......11--Totalliabilities
......................$280$37$386$3 2010:Derivativeassetsdesignatedashedginginstruments Commoditycontracts:
Power................MTMderivativeassets.................$3$(b)$(b)$-Otherassets........................2---Totalassets........................$5$-$-$-DerivativeliabilitiesdesignatedashedginginstrumentsCommoditycontracts:
Power................MTMderivativeliabilities...............$1$(b)$-$-Totalliabilities......................$1$-$-$-Derivativeassetsnotdesignatedashedginginstruments (c)Commoditycontracts:Fueloils..............MTMderivativeassets.................$42$(b)$(b)$14Othercurrentassets..................-24--Otherassets........................2213-7Naturalgas............MTMderivativeassets.................4(b)(b)1Othercurrentassets..................-11-Otherassets........................1 Power................MTMderivativeassets.................78(b)(b)11Othercurrentassets..................-82-Otherassets........................20 Uranium..............MTMderivativeassets.................2(b)(b)-Othercurrentassets..................-2--Totalassets........................$169$48$10$33Derivativeliabilitiesnotdesignatedashedginginstruments (c)Commoditycontracts:Fueloils..............MTMderivativeliabilities...............$12$(b)$-$4Othercurrentliabilities................-7--Otherdeferredcreditsandliabilities......1---Naturalgas............MTMderivativeliabilities...............87(b)732Othercurrentliabilities................-11--Otherdeferredcreditsandliabilities......841370-Power................MTMderivativeliabilities...............61(b)93MTMderivativeliabilities-affiliates......(b)(b)1725Othercurrentliabilities................-6--Otherdeferredcreditsandliabilities......7-179-Totalliabilities......................$252$37$503$14(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.(b)Balancesheetlineitemnotapplicabletoregistrant.
(c)Includesderivativessubjecttoregulatorydeferral.
124 Thefollowingtablepresentsthecumulativeamountofpretaxnetgains(losses)onallderivativeinstrumentsinaccumulatedOCIandregulatoryassetsorregulatoryliabilitiesasofDecember31,2011and2010:
Ameren Ameren Missouri AmerenIllinoisGencoOther (a)2011:Cumulativegains(losses)deferredinaccumulatedOCI:Powerderivativecontracts (b).............................$19$-$-$-$19Interestratederivativecontracts (c)(d)......................(8)--(8)-Cumulativegains(losses)deferredinregulatoryliabilitiesorassets:Fueloilsderivativecontracts (e)...........................1919---Naturalgasderivativecontracts (f).........................(191)(24)(167)--Powerderivativecontracts (g).............................8121(140)-200Uraniumderivativecontracts (h)...........................(1)(1)---2010:Cumulativegains(losses)deferredinaccumulatedOCI:Powerderivativecontracts (b).............................$8$-$-$-$8Interestratederivativecontracts (c)(d)......................(9)--(9)-Cumulativegains(losses)deferredinregulatoryliabilitiesorassets:Fueloilsderivativecontracts (e)...........................1919---Naturalgasderivativecontracts (f).........................(165)(24)(141)--Powerderivativecontracts (g).............................13(352)-350Uraniumderivativecontracts (h)...........................22---(a)IncludesamountsforMarketingCompanyandintercompanyeliminations.(b)RepresentsnetgainsassociatedwithpowerderivativecontractsatAmeren.ThesecontractsareapartialhedgeofelectricitypriceexposurethroughDecember2014asofDecember31,2011.Currentgainsof$5millionand$8millionwererecordedatAmerenasofDecember31, 2011,andDecember31,2010,respectively.(c)IncludesnetgainsassociatedwithinterestrateswapsatGencothatwereapartialhedgeoftheinterestrateondebtissuedinJune2002.Theswapscoverthefirst10yearsofdebtthathasa30-yearmaturity,andthegaininOCIisamortizedovera10-yearperiodthatbeganinJune 2002.ThecarryingvalueatDecember31,2011,andDecember31,2010waslessthan$1millionandlessthan$1million,respectively.The balanceofthegainwillbeamortizedbyJune2012.(d)IncludesnetlossesassociatedwithinterestrateswapsatGenco.Theswapswereexecutedduringthefourthquarterof2007asapartialhedgeofinterestraterisksassociatedwithGencosApril2008debtissuance.Thelossontheinterestrateswapsisbeingamortizedovera10-year periodthatbeganinApril2008.ThecarryingvalueatDecember31,2011,andDecember31,2010,wasalossof$9millionandalossof
$10million,respectively.Overthenext12months,$1.4millionofthelosswillbeamortized.(e)RepresentsnetgainsonfueloilsderivativecontractsatAmerenMissouri.ThesecontractsareapartialhedgeofAmerenMissouristransportationcostsforcoalthroughOctober2014asofDecember31,2011.Currentgainsdeferredasregulatoryliabilitiesinclude$16million and$16millionatAmerenandAmerenMissouriasofDecember31,2011,respectively.Currentlossesdeferredasregulatoryassetsinclude
$1millionand$1millionatAmerenandAmerenMissouriasofDecember31,2011,respectively.Currentgainsdeferredasregulatoryliabilities include$13millionand$13millionatAmerenandAmerenMissouriasofDecember31,2010,respectively.Currentlossesdeferredas regulatoryassetsinclude$6millionand$6millionatAmerenandAmerenMissouriasofDecember31,2010,respectively.(f)Representsnetlossesassociatedwithnaturalgasderivativecontracts.ThesecontractsareapartialhedgeofnaturalgasrequirementsthroughOctober2016atAmeren,AmerenMissouri,andAmerenIllinoisineachcaseasofDecember31,2011.Currentgainsdeferredasregulatory liabilitiesinclude$1millionand$1millionatAmerenandAmerenIllinois,respectively,asofDecember31,2011.Currentlossesdeferredas regulatoryassetsinclude$101million,$11million,and$90millionatAmeren,AmerenMissouriandAmerenIllinois,respectively,asof December31,2011.Currentgainsdeferredasregulatoryliabilitiesinclude$2million,$1million,and$1millionatAmeren,AmerenMissouri, andAmerenIllinois,respectively,asofDecember31,2010.Currentlossesdeferredasregulatoryassetsinclude$84million,$11million,and
$73millionatAmeren,AmerenMissouriandAmerenIllinois,respectively,asofDecember31,2010.(g)Representsnetlossesassociatedwithpowerderivativecontracts.ThesecontractsareapartialhedgeofpowerpricerequirementsthroughMay2032atAmerenandAmerenIllinoisandthroughDecember2015atAmerenMissouri,ineachcaseasofDecember31,2011.Currentgains deferredasregulatoryliabilitiesinclude$29millionand$29millionatAmerenandAmerenMissouri,respectively,asofDecember31,2011.
Currentlossesdeferredasregulatoryassetsinclude$17million,$8million,and$209millionatAmeren,AmerenMissouriandAmerenIllinois, respectively,asofDecember31,2011.Currentgainsdeferredasregulatoryliabilitiesinclude$8million,$6million,and$2millionatAmeren, AmerenMissouriandAmerenIllinois,respectively,asofDecember31,2010.Currentlossesdeferredasregulatoryassetsinclude$13million,
$3million,and$181millionatAmeren,AmerenMissouriandAmerenIllinois,respectively,asofDecember31,2010.(h)Representsnetgains(losses)onuraniumderivativecontractsatAmerenMissouri.ThesecontractsareapartialhedgeofoururaniumrequirementsthroughDecember2013asofDecember31,2011.Currentlossesdeferredasregulatoryassetsincludelessthan$1millionand lessthan$1millionatAmerenandAmerenMissouriasofDecember31,2011,respectively.Currentgainsdeferredasregulatoryliabilities include$2millionatAmerenand$2millionatAmerenMissouriasofDecember31,2010.
125 Derivativeinstrumentsaresubjecttovariouscredit-relatedlossesintheeventofnonperformancebycounterpartiestothetransaction.Exchange-tradedcontractsaresupportedbythefinancialandcreditqualityoftheclearingmembersofthe respectiveexchangesandhavenominalcreditrisk.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, collateralrequirementsarecalculatedatamastertradingandnettingagreementlevelbycounterparty.ConcentrationsofCreditRiskIndeterminingourconcentrationsofcreditriskrelatedtoderivativeinstruments,wereviewourindividualcounterpartiesandcategorizeeachcounterpartyintooneofeightgroupingsaccordingtotheprimarybusinessinwhicheachengages.The followingtablepresentsthemaximumexposure,asofDecember31,2011,and2010,ifcounterpartygroupsweretofail completelytoperformoncontractsbygrouping.Themaximumexposureisbasedonthegrossfairvalueoffinancial instruments,includingNPNScontracts,whichexcludescollateralheld,anddoesnotconsiderthelegallybindingrighttonet transactionsbasedonmastertradingandnettingagreements.
Affiliates (a)Coal Producers Commodity Marketing Companies Electric Utilities Financial Companies Municipalities/
CooperativesOilandGas Companies RetailCompaniesTotal 2011:AMO.......$1$35$1$4$26$4$-$-$71AIC........--84-1---85 Genco......-1126-3-13 Other (b).....275131051194-87621 Ameren.....$276$37$89$16$84$198$3$87$790 2010:AMO.......$-$21$1$2$5$11$1$-$41 AIC........--3-1---4
Genco......-6211-6-16 Other (b).....4103101965539372 1,121 Ameren.....$410$30$16$22$72$550$10$72$
1,182(a)PrimarilycomposedofMarketingCompanysexposuretoAmerenIllinoisrelatedtofinancialcontracts.TheexposureisnoteliminatedattheconsolidatedAmerenlevelforpurposesofthisdisclosure,asitiscalculatedwithoutregardtotheoffsettingaffiliatecounterpartysliability position.SeeNote14-RelatedPartyTransactionsforadditionalinformationonthesefinancialcontracts.(b)IncludesamountsforMarketingCompany,AERG,andAFS.Thepotentiallossoncounterpartyexposuresisreducedbytheapplicationofmastertradingandnettingagreementsandcollateralheldtotheextentofreducingtheexposuretozero.Collateralincludesbothcashcollateralandothercollateralheld.
TheamountofcashcollateralheldbyMarketingCompanyfromcounterpartiesandbasedonthecontractualrightsunderthe agreementstoseekcollateralandthemaximumexposureascalculatedundertheindividualmastertradingandnetting agreementswaslessthan$1millionand$1millionfromretailcompaniesatDecember31,2011and2010,respectively.There 126 wasnocashcollateralheldatAmerenregistrantsubsidiaries.AsofDecember31,2011,othercollateralusedtoreduceexposureconsistedoflettersofcreditintheamountof$9million,$1million,$1million,and$7millionheldbyAmeren, AmerenMissouri,Genco,andMarketingCompany,respectively.AsofDecember31,2010,othercollateralusedtoreduce exposureconsistedoflettersofcreditintheamountof$28millionand$1millionheldbyAmerenandAmerenIllinois, respectively.Thefollowingtablepresentsthepotentiallossafterconsiderationoftheapplicationofmastertradingandnetting agreementsandcollateralheldasofDecember31,2011and2010:
Affiliates (a)Coal Producers Commodity Marketing Companies Electric Utilities Financial Companies Municipalities/
CooperativesOilandGas Companies RetailCompaniesTotal 2011:AMO.......$1$35$1$3$22$4$-$-$66AIC........--84-----84 Genco......---11-2-4 Other (b).....273-3542187-86596 Ameren.....$274$35$88$9$65$191$2$86$750 2010:AMO.......$-$8$-$1$2$10$-$-$21 AIC........--2-----2
Genco......-1111-5-9 Other (b).....40418756513271 1,062 Ameren.....$404$10$11$9$59$523$7$71$
1,094(a)PrimarilycomprisedofMarketingCompanysexposuretoAmerenIllinoisrelatedtofinancialcontracts.TheexposureisnoteliminatedattheconsolidatedAmerenlevelforpurposesofthisdisclosure,asitiscalculatedwithoutregardtotheoffsettingaffiliatecounterpartysliability position.SeeNote14-RelatedPartyTransactionsforadditionalinformationonthesefinancialcontracts.(b)IncludesamountsforMarketingCompany,AERG,andAFS.DerivativeInstrumentswithCreditRisk-RelatedContingentFeaturesOurcommoditycontractscontaincollateralprovisionstiedtotheAmerenCompaniescreditratings.Ifweweretoexperienceanadversechangeinourcreditratings,orifacounterpartywithreasonablegroundsforuncertaintyregarding performanceofanobligationrequestedadequateassuranceofperformance,additionalcollateralpostingsmightberequired.
Thefollowingtablepresents,asofDecember31,2011,and2010,theaggregatefairvalueofallderivativeinstrumentswith creditrisk-relatedcontingentfeaturesinagrossliabilityposition,thecashcollateralposted,andtheaggregateamountof additionalcollateralthatcouldberequiredtobepostedwithcounterparties.Theadditionalcollateralrequiredisthenetliability positionallowedunderthemastertradingandnettingagreementsassuming(1)thecreditrisk-relatedcontingentfeatures underlyingtheseagreementsweretriggeredonDecember31,2011,or2010,respectively,and(2)thosecounterpartieswith rightstodosorequestedcollateral:AggregateFairValueofDerivativeLiabilities (a)CashCollateralPostedPotentialAggregateAmountofAdditionalCollateralRequired (b)2011:AmerenMissouri
................................$102$8$86AmerenIllinois
..................................22096125 Genco.........................................55158 Other (c)........................................791163 Ameren........................................$456$116$332 2010:AmerenMissouri................................$105$7$93AmerenIllinois..................................233109111 Genco.........................................31-28 Other (c)........................................621842 Ameren........................................$431$134$274(a)PriortoconsiderationofmastertradingandnettingagreementsandincludingNPNScontractexposures.(b)Ascollateralrequirementswithcertaincounterpartiesarebasedonmastertradingandnettingagreements,theaggregateamountofadditionalcollateralrequiredtobepostedisdeterminedafterconsiderationoftheeffectsofsuchagreements.(c)IncludesamountsforMarketingCompanyandAmeren(parent).
127 CashFlowHedgesThefollowingtablepresentsthepretaxnetgainorlossfortheyearendedDecember31,2011and2010,associatedwithderivativeinstrumentsdesignatedascashflowhedges:Gain(Loss)RecognizedinOCI (a)Locationof(Gain)LossReclassifiedfromAccumulatedOCIinto Income (b)(Gain)LossReclassifiedfromAccumulatedOCIintoIncome (b)LocationofGain(Loss)RecognizedinIncome (c)Gain(Loss)
RecognizedinIncome (c)2011: Ameren: (d)Power.........$6OperatingRevenues-Electric..
$5OperatingRevenues-Electric..$(10)Interestrate (e)...-InterestCharges
............(f)InterestCharges............-
Genco:Interestrate (e)...-InterestCharges
............(f)InterestCharges............-
2010: Ameren: (d)Power.........$(2)OperatingRevenues-Electric..$(14)OperatingRevenues-Electric..$(3)Interestrate (e)...-InterestCharges............(f)InterestCharges............-
Genco:Interestrate (e)...-InterestCharges............(f)InterestCharges............-(a)Effectiveportionofgain(loss).(b)Effectiveportionof(gain)lossonsettlements.
(c)Ineffectiveportionofgain(loss)andamountexcludedfromeffectivenesstesting.
(d)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.
(e)Representsinterestrateswapssettledinpriorperiods.Thecumulativegainandlossontheinterestrateswapsisbeingamortizedintoincomeovera10-yearperiod.(f)Lessthan$1million.OtherDerivativesThefollowingtablerepresentsthenetchangeinmarketvalueassociatedwithderivativesnotdesignatedashedginginstrumentsfortheyearsendedDecember31,2011and2010:LocationofGain(Loss)RecognizedinIncomeGain(Loss)RecognizedinIncome20112010 Ameren (a)Fueloils...........................OperatingExpenses-Fuel
.............$(1)$9Naturalgas(generation)
..............OperatingExpenses-Fuel
.............
2-Powe r.............................OperatingRevenues-Electric
..........
(2)9 Total$(1)$18AmerenMissouriNaturalgas(generation)
..............OperatingExpenses-Fuel
.............$(1)$1GencoFueloils
...........................OperatingExpenses-Fuel
.............$(1)$7Naturalgas(generation)
..............OperatingExpenses-Fuel
.............
2-Powe r.............................OperatingRevenues
..................
(3)1 Total$(2)$8(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.
128 DerivativesSubjecttoRegulatoryDeferralThefollowingtablerepresentsthenetchangeinmarketvalueassociatedwithderivativesthatqualifyfor regulatorydeferralfortheyearsendedDecember31,2011 and2010:Gain(Loss)RecognizedInRegulatoryLiabilitiesorRegulatoryAssets20112010 Ameren (a)Fueloils.............
$-$14Naturalgas
...........
(26)(91)Powe r...............
80 12 Uranium.............
(3)4 Total$51$(61)AmerenFueloils
.............
$-$14MissouriNaturalgas
...........
-(11)Powe r...............
18 4 Uranium.............
(3)4 Total$15$11AmerenNaturalgas
...........$(26)$(80)IllinoisPowe r...............
212 70 Total$186$(10)(a)Includesamountsforintercompanyeliminations.Aspartofthe2007IllinoisElectricSettlementAgreementandsubsequentIllinoispowerprocurement processes,AmerenIllinoisenteredintofinancialcontracts withMarketingCompany.Thesefinancialcontractsare derivativeinstruments.Theyareaccountedforascashflow hedgesbyMarketingCompanyandasderivativesthat qualifyforregulatorydeferralbyAmerenIllinois.
Consequently,AmerenIllinoisandMarketingCompany recordthefairvalueofthecontractsontheirrespective balancesheetsandthechangestothefairvaluein regulatoryassetsorliabilitiesbyAmerenIllinoisandOCIby MarketingCompany.InAmerensconsolidatedfinancial statements,allfinancialstatementeffectsofthederivative instrumentsenteredintoamongaffiliateswereeliminated.
SeeNote14-RelatedPartyTransactionsforadditional informationonthesefinancialcontracts.Thefollowingtable presentsthefairvalueofthefinancialcontractsincludedon AmerenIllinoisbalancesheetatDecember31,2011and
2010:20112010AmerenMTMderivativeliabilities-affiliates...$200$172IllinoisOtherdeferredcreditsandliabilities...
-178 Total$200$350NOTE8-FAIRVALUEMEASUREMENTSFairvalueisdefinedastheexchangepricethatwouldbereceivedforanassetorpaidtotransferaliability(anexit price)intheprincipalormostadvantageousmarketforthe assetorliabilityinanorderlytransactionbetweenmarket 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.Level1assetsandliabilitiesare primarilyexchange-tradedderivativesandassets,including cashandcashequivalentsandlistedequitysecurities,such asthoseheldinAmerenMissourisNuclear DecommissioningTrustFund.Level2:Market-basedinputscorroboratedbythird-partybrokersorexchangesbasedontransactedmarketdata.
Level2assetsandliabilitiesincludecertainassetsheldin AmerenMissourisNuclearDecommissioningTrustFund, includingcorporatebondsandotherfixed-income securities,U.S.treasuryandagencysecurities,andcertain over-the-counterderivativeinstruments,includingnatural gasswapsandfinancialpowertransactions.Derivative instrumentsclassifiedasLevel2arevaluedbycorroborated observableinputs,suchaspricingservicesorpricesfrom similarinstrumentsthattradeinliquidmarkets.Our developmentandcorroborationprocessentailsobtaining multiplequotesorpricesfromoutsidesources.Toderive ourforwardviewtopriceourderivativeinstrumentsatfair value,weaveragethemidpointsofthebid/askspreads.To validateforwardpricesobtainedfromoutsideparties,we comparethepricingtorecentlysettledmarkettransactions.
Additionally,areviewofallsourcesisperformedtoidentify anyanomaliesorpotentialerrors.Further,weconsiderthe volumeoftransactionsoncertaintradingplatformsinour reasonablenessassessmentoftheaveragedmidpoint.Level3:Unobservableinputsthatarenotcorroboratedbymarketdata.Level3assetsandliabilitiesarevaluedby 129 internallydevelopedmodelsandassumptionsormethodologiesthatusesignificantunobservableinputs.
Level3assetsandliabilitiesincludederivativeinstruments thattradeinlessliquidmarkets,wherepricingislargely unobservable,includingthefinancialcontractsenteredinto betweenAmerenIllinoisandMarketingCompany.Wevalue Level3instrumentsbyusingpricingmodelswithinputs thatareoftenunobservableinthemarket,aswellascertain internalassumptions.Ourdevelopmentandcorroboration processentailsobtainingmultiplequotesorpricesfrom outsidesources.Asapartofourreasonablenessreview,an evaluationofallsourcesisperformedtoidentifyany anomaliesorpotentialerrors.Weperformananalysiseachquartertodeterminetheappropriatehierarchyleveloftheassetsandliabilities subjecttofairvaluemeasurements.Financialassetsand liabilitiesareclassifiedintheirentiretyaccordingtothe lowestlevelofinputthatissignificanttothefairvalue measurement.Allassetsandliabilitieswhosefairvalue measurementisbasedonsignificantunobservableinputs areclassifiedasLevel3.Inaccordancewithapplicableauthoritativeaccountingguidance,weconsidernonperformanceriskinourvaluation ofderivativeinstrumentsbyanalyzingthecreditstandingof ourcounterpartiesandconsideringanycounterpartycredit enhancements(e.g.,collateral).Theguidancealsorequiresthatthefairvaluemeasurementofliabilitiesreflectthenonperformanceriskofthereportingentity,asapplicable.
Therefore,wehavefactoredtheimpactofourcredit standingaswellasanypotentialcreditenhancementsinto thefairvaluemeasurementofbothderivativeassetsand derivativeliabilities.Includedinourvaluation,andbasedon currentmarketconditions,isavaluationadjustmentfor counterpartydefaultderivedfrommarketdatasuchasthe priceofcreditdefaultswaps,bondyields,andcredit ratings.Amerenrecordednetlossesof$2million,netgains oflessthan$1million,andnetlossesoflessthan
$1millionin2011,2010and2009,respectively,relatedto valuationadjustmentsforcounterpartydefaultrisk.Genco recordednetlossesoflessthan$1million,netgainsofless than$1million,andnetgainsoflessthan$1millionin 2011,2010,and2009,respectively,relatedtovaluation adjustmentsforcounterpartydefaultrisk.AtDecember31, 2011,thecounterpartydefaultrisk(asset)/liabilityvaluation adjustmentrelatedtoderivativecontractstotaled$1million, lessthan$1million,$19million,andlessthan$(1)million forAmeren,AmerenMissouri,AmerenIllinoisandGenco, respectively.AtDecember31,2010,thecounterparty defaultriskliabilityvaluationadjustmentrelatedto derivativecontractstotaled$2million,lessthan$1million,
$21million,andlessthan$1millionforAmeren,Ameren Missouri,AmerenIllinoisandGenco,respectively.
130 Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchy,ourassetsandliabilitiesmeasuredatfairvalueonarecurringbasisasofDecember31,2011:QuotedPricesinActiveMarketsforIdenticalAssetsorLiabilities(Level1)SignificantOther Observable Inputs(Level2)SignificantOther Unobservable Inputs(Level3)Total Assets: Ameren (a)Derivativeassets-commoditycontracts (b):Fueloils.............................$33$-$4$37Naturalgas...........................4-26 Power...............................-2193195NuclearDecommissioningTrustFund (c):Cashandcashequivalents...............3--3Equitysecurities:U.S.largecapitalization.............234--234Debtsecurities:Corporatebonds...................-44-44Municipalbonds...................-1-1U.S.treasuryandagencysecurities....-65-65Asset-backedsecurities.............-10-10 Other...........................-1-1AmerenDerivativeassets-commoditycontracts (b):MissouriFueloils.............................20-323Naturalgas...........................2--2 Power...............................-12930NuclearDecommissioningTrustFund (c):Cashandcashequivalents...............3--3Equitysecurities:U.S.largecapitalization.............234--234Debtsecurities:Corporatebonds...................-44-44Municipalbonds...................-1-1U.S.treasuryandagencysecurities....-65-65Asset-backedsecurities.............-10-10 Other...........................-1-1AmerenDerivativeassets-commoditycontracts (b):IllinoisNaturalgas...........................--22 Power...............................--7777GencoDerivativeassets-commoditycontracts (b):Fueloils.............................10-111Naturalgas...........................2--2 Liabilities:
Ameren (a)Derivativeliabilities-commoditycontracts (b):Fueloils.............................$2$-$-$2Naturalgas...........................22-176198 Power...............................-27880 Uranium.............................--11AmerenDerivativeliabilities-commoditycontracts (b):MissouriFueloils.............................1--1Naturalgas...........................12-1426 Power...............................-189 Uranium.............................--11AmerenDerivativeliabilities-commoditycontracts (b):IllinoisNaturalgas...........................7-162169 Power...............................--217217GencoDerivativeliabilities-commoditycontracts (b):Fueloils.............................1--1Naturalgas...........................2--2(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.(b)Thederivativeassetandliabilitybalancesarepresentednetofcounterpartycreditconsiderations.
(c)Balanceexcludes$(1)millionofreceivables,payables,andaccruedincome,net.
131 Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchy,ourassetsandliabilitiesmeasuredatfairvalueonarecurringbasisasofDecember31,2010:QuotedPricesinActiveMarketsforIdenticalAssetsorLiabilities(Level1)SignificantOtherObservableInputs(Level2)Significant Other Unobservable Inputs(Level3)Total Assets: Ameren (a)Derivativeassets-commoditycontracts (b):Fueloils.....................................$-$-$64$64Naturalgas..................................3-25 Power......................................-1786103 Uranium....................................--22NuclearDecommissioningTrustFund (c):Cashandcashequivalents......................1--1Equitysecurities:U.S.largecapitalization.....................228--228Debtsecurities:Corporatebonds..........................-40-40Municipalbonds..........................-2-2U.S.treasuryandagencysecurities...........-50-50Asset-backedsecurities.....................-14-14 Other...................................-1-1AmerenDerivativeassets-commoditycontracts (b):MissouriFueloils.....................................--3737Naturalgas..................................--11 Power......................................-358 Uranium....................................--22NuclearDecommissioningTrustFund (c):Cashandcashequivalents......................1--1Equitysecurities:U.S.largecapitalization.....................228--228Debtsecurities:Corporatebonds..........................-40-40Municipalbonds..........................-2-2U.S.treasuryandagencysecurities...........-50-50Asset-backedsecurities.....................-14-14 Other...................................-1-1AmerenDerivativeassets-commoditycontracts (b):IllinoisNaturalgas..................................--22 Power......................................--88GencoDerivativeassets-commoditycontracts (b):Fueloils.....................................--2121Naturalgas..................................1--1 Power......................................--1111 Liabilities:
Ameren (a)Derivativeliabilities-commoditycontracts (b):Fueloils.....................................$-$-$13$13Naturalgas..................................21-150171 Power......................................-195069AmerenDerivativeliabilities-commoditycontracts (b):MissouriFueloils.....................................--77Naturalgas..................................9-1524 Power......................................-336AmerenDerivativeliabilities-commoditycontracts (b):IllinoisNaturalgas..................................7-136143 Power......................................--360360GencoDerivativeliabilities-commoditycontracts (b):Fueloils.....................................--44Naturalgas..................................2--2 Power......................................--88(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.(b)Thederivativeassetandliabilitybalancesarepresentednetofcounterpartycreditconsiderations.
(c)Balanceexcludes$1millionofreceivables,payables,andaccruedincome,net.
132 InJanuary2010,theFASBissuedamendedauthoritativeguidanceregardingfairvaluemeasurements.ThisguidancerequireddisclosuresregardingsignificanttransfersintoandoutofLevel1andLevel2fairvaluemeasurements.Italso requiredinformationonpurchases,sales,issuances,andsettlementsonagrossbasisinthereconciliationofLevel3fairvalue measurements.ThisguidancewaseffectiveforusasofJanuary1,2010,withtheexceptionofguidanceapplicabletodetailed Level3reconciliationdisclosures,whichbecameeffectiveforusasofJanuary1,2011.Theadoptionofthisguidancedidnot haveamaterialimpactonourresultsofoperations,financialposition,orliquiditybecauseitprovidesenhanceddisclosure requirementsonly.ThefollowingtablesummarizesthechangesinthefairvalueoffinancialassetsandliabilitiesclassifiedasLevel3inthefairvaluehierarchyasofDecember31,2011:Netderivativecommoditycontracts Ameren Missouri AmerenIllinoisGencoOther (c)AmerenFueloils:BeginningbalanceatJanuary1,2011..............................$30$(a)$17$4$51Realizedandunrealizedgains(losses):Includedinearnings (b)......................................-(a)12416Includedinregulatoryassets/liabilities..........................19(a)(a)(a)19Totalrealizedandunrealizedgains(losses)....................19(a)12435 Purchases..................................................4(a)1-5 Sales......................................................(1)(a)--(1)
Settlements
.................................................(30)(a)(20)(6)(56)TransfersoutofLevel3
.......................................(19)(a)(9)(2)(30)EndingbalanceatDecember31,2011..............................$3$(a)$1$-$4Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2011...........................................$(11)$(a)$(5)$(2)$(18)Naturalgas:BeginningbalanceatJanuary1,2011..............................$(14)$(134)$-$-$(148)Realizedandunrealizedgains(losses):Includedinregulatoryassets/liabilities..........................(8)(107)(a)(a)(115)Totalrealizedandunrealizedgains(losses)....................(8)(107)(a)(a)(115)
Purchases..................................................-1--1 Sales......................................................-(1)--(1)
Settlements.................................................881--89EndingbalanceatDecember31,2011..............................$(14)$(160)$-$-$(174)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2011...........................................$(6)$(72)$-$-$(78)
Power:BeginningbalanceatJanuary1,2011..............................$2$(352)$3$383$36Realizedandunrealizedgains(losses):Includedinearnings (b)......................................--(1)(12)(13)IncludedinOCI............................................---2424Includedinregulatoryassets/liabilities..........................177(a)5175Totalrealizedandunrealizedgains(losses)....................177(1)6386 Purchases..................................................30--3565 Sales......................................................(1)--(21)(22)Settlements
.................................................(27)205(2)(225)(49)TransfersintoLevel3.........................................(1)--1-TransfersoutofLevel3.......................................1--(2)(1)EndingbalanceatDecember31,2011..............................$21$(140)$-$234$115Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2011...........................................$1$13$(1)$60$73 Uranium:BeginningbalanceatJanuary1,2011..............................$2$(a)$(a)$(a)$2Realizedandunrealizedgains(losses):Includedinregulatoryassets/liabilities..........................(3)(a)(a)(a)(3)Totalrealizedandunrealizedgains(losses)....................(3)(a)(a)(a)(3)
Purchases..................................................(1)(a)(a)(a)(1)
Settlements.................................................1(a)(a)(a)1EndingbalanceatDecember31,2011..............................$(1)$(a)$(a)$(a)$(1)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2011...........................................$-$(a)$(a)$(a)$-(a)Notapplicable.(b)NetgainsandlossesonfueloilsandnaturalgasderivativecommoditycontractsarerecordedinOperatingExpenses-Fuel,whilenetgainsandlossesonpowerderivativecommoditycontractsarerecordedinOperatingRevenues-Electric.(c)IncludesamountsforMerchantGenerationnonregistrantsubsidiariesandintercompanyeliminations.
133 ThefollowingtablesummarizesthechangesinthefairvalueoffinancialassetsandliabilitiesclassifiedasLevel3inthefairvaluehierarchyasofDecember31,2010:Netderivativecommoditycontracts Ameren Missouri AmerenIllinoisGencoOther (c)AmerenFueloils:BeginningbalanceatJanuary1,2010...............................$32$(a)$21$7$60Realizedandunrealizedgains(losses):Includedinearnings (b).......................................-(a)3(2)1Includedinregulatoryassets/liabilities...........................8(a)(a)(a)8Totalrealizedandunrealizedgains(losses).....................8(a)3(2)9 Purchases...................................................18(a)11433 Settlements
..................................................(28)(a)(18)(5)(51)EndingbalanceatDecember31,2010...............................$30$(a)$17$4$51Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2010............................................$7$(a)$4$-$11Naturalgas:BeginningbalanceatJanuary1,2010...............................$(6)$(61)$-$-$(67)Realizedandunrealizedgains(losses):Includedinregulatoryassets/liabilities
...........................(20)(152)(a)(a)(172)Totalrealizedandunrealizedgains(losses)
.....................(20)(152)--(172)
Purchases...................................................-(5)--(5)
Settlements..................................................1284--96EndingbalanceatDecember31,2010...............................$(14)$(134)$-$-$(148)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2010............................................$(11)$(82)$-$1$(92)
Power:BeginningbalanceatJanuary1,2010...............................$(1)$(422)$1$460$38Realizedandunrealizedgains(losses):Includedinearnings (b).......................................--23234IncludedinOCI.............................................---88Includedinregulatoryassets/liabilities...........................27(107)(a)9515Totalrealizedandunrealizedgains(losses).....................27(107)213557 Purchases...................................................419(10)2639 Sales.......................................................2-12(13)1 Settlements
..................................................(24)158(2)(197)(65)TransfersintoLevel3..........................................---(2)(2)TransfersoutofLevel3........................................(6)--(26)(32)EndingbalanceatDecember31,2010...............................$2$(352)$3$383$36Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2010............................................$1$(89)$-$81$(7)
Uranium:BeginningbalanceatJanuary1,2010...............................$(2)$(a)$(a)$(a)$(2)Realizedandunrealizedgains(losses):Includedinregulatoryassets/liabilities...........................3(a)(a)(a)3Totalrealizedandunrealizedgains(losses).....................3(a)(a)(a)3 Settlements..................................................1(a)(a)(a)1EndingbalanceatDecember31,2010...............................$2$(a)$(a)$(a)$2Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2010............................................$1$(a)$(a)$(a)$1(a)Notapplicable.(b)NetgainsandlossesonheatingoilandnaturalgasderivativecommoditycontractsarerecordedinOperatingExpenses-Fuel,whilenetgainsandlossesonpowerderivativecommoditycontractsarerecordedinOperatingRevenues-Electric.(c)IncludesamountsforMerchantGenerationnonregistrantsubsidiariesandintercompanyeliminations.
134 TransfersinoroutofLevel3representeither(1)existingassetsandliabilitiesthatwerepreviouslycategorizedasahigherlevelbutwererecategorizedtoLevel3becausetheinputstothemodelbecameunobservableduringtheperiod,or (2)existingassetsandliabilitiesthatwerepreviouslyclassifiedasLevel3butwererecategorizedtoahigherlevelbecausethe lowestsignificantinputbecameobservableduringtheperiod.TransfersbetweenLevel2andLevel3wereprimarilycausedby changesinavailabilityoffinancialpowertradesobservableonelectronicexchangesfromthepreviousreportingperiodforthe yearsendedDecember31,2011and2010.AnyreclassificationsarereportedastransfersoutofLevel3atthefairvalue measurementreportedatthebeginningoftheperiodinwhichthechangesoccur.FortheyearsendedDecember31,2011and 2010,therewerenotransfersbetweenLevel1andLevel2relatedtoderivativecommoditycontracts.Thefollowingtable summarizesalltransfersbetweenfairvaluehierarchylevelsrelatedtoderivativecommoditycontractsfortheyearsended December31,2011and2010:20112010Ameren-derivativecommoditycontracts: (a)TransfersintoLevel3/TransfersoutofLevel1
.....................................................
$-$(1)TransfersoutofLevel3/TransfersintoLevel1
.....................................................
(30)-TransfersintoLevel3/TransfersoutofLevel2
.....................................................
-(1)TransfersoutofLevel3/TransfersintoLevel2
.....................................................
(1)(32)NetfairvalueofLevel3transfers
...............................................................$(31)$(34)AmerenMissouri-derivativecommoditycontracts:TransfersoutofLevel3/TransfersintoLevel1
.....................................................$(19)$-TransfersintoLevel3/TransfersoutofLevel2
.....................................................
(1)-TransfersoutofLevel3/TransfersintoLevel2
.....................................................
1 (6)NetfairvalueofLevel3transfers
...............................................................$(19)$(6)Genco-derivativecommoditycontracts:TransfersoutofLevel3/TransfersintoLevel1
.....................................................$(9)$-(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.SeeNote11-RetirementBenefitsforthefairvaluehierarchytablesdetailingAmerenspensionandpostretirementplanassetsasofDecember31,2011,aswellasatablesummarizingthechangesinLevel3planassetsduring2011.TheAmerenCompaniescarryingamountsofcashandcashequivalents,accountsreceivable,short-termborrowings,andaccountspayableapproximatefairvaluebecauseoftheshort-termnatureoftheseinstruments.Theestimatedfairvalueof long-termdebtandpreferredstockisbasedonthequotedmarketpricesforsameorsimilarissuesforcompanieswithsimilar creditprofilesoronthecurrentratesofferedtotheAmerenCompaniesforsimilarfinancialinstruments.Thefollowingtablepresentsthecarryingamountsandestimatedfairvaluesofourlong-termdebtandpreferredstockatDecember31,2011and2010:20112010CarryingAmountFairValueCarryingAmountFairValue Ameren: (a)(b)Long-termdebtandcapitalleaseobligations(includingcurrentportion)
.....$6,856$7,800$7,008$7,661Preferredstock
.................................................14292142102AmerenMissouri:Long-termdebtandcapitalleaseobligations(includingcurrentportion)
.....$3,950$4,541$3,954$4,281Preferredstock
.................................................80558062AmerenIllinois:Long-termdebt(includingcurrentportion)
............................$1,658$1,943$1,807$2,067Preferredstock
.................................................62376240 Genco:Long-termdebt(includingcurrentportion)
............................$824$839$824$826(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.(b)Preferredstockalongwiththe20%noncontrollinginterestofEEIisrecordedinNoncontrollingInterestsonthebalancesheet.NOTE9-NUCLEARDECOMMISSIONINGTRUSTFUND INVESTMENTSAmerenMissourihasinvestmentsindebtandequitysecuritiesthatareheldinatrustfundforthepurposeof fundingthedecommissioningofitsCallawayenergycenter.SeeNote10-CallawayEnergyCenterforadditionalinformation.Wehaveclassifiedtheseinvestmentsas availableforsale,andwehaverecordedallsuch investmentsattheirfairmarketvalueatDecember31, 2011,and2010.
135 Investmentsinthenucleardecommissioningtrustfundhaveatargetallocationof60%to70%inequity securities,withthebalanceinvestedindebtsecurities.ThefollowingtablepresentsproceedsfromthesaleofinvestmentsinAmerenMissourisnuclear decommissioningtrustfundandthegrossrealizedgains andlossesresultingfromthosesalesfortheyearsended December31,2011,2010,and2009:201120102009Proceedsfromsales
..........$199$256$380Grossrealizedgains
...........
5 55Grossrealizedlosses
..........
4410Netrealizedandunrealizedgainsandlossesaredeferredandrecordedasregulatoryassetsorregulatory liabilitiesonAmerensandAmerenMissourisbalance sheets.Thisreportingisconsistentwiththemethodusedto accountforthedecommissioningcostsrecoveredinrates.
Gainsorlossesassociatedwithassetsinthetrustfund couldresultinlowerorhigherfundingrequirementsfor decommissioningcosts,whichareexpectedtobereflected inelectricratespaidbyAmerenMissouriscustomers.See Note2-RateandRegulatoryMatters.ThefollowingtablepresentsthecostsandfairvaluesofinvestmentsindebtandequitysecuritiesinAmerenMissourisnucleardecommissioningtrustfundatDecember31,2011and2010:SecurityTypeCostGrossUnrealizedGainGrossUnrealizedLossFairValue 2011:Debtsecurities
....................................$114$7$(a)$121Equitysecurities
..................................14510112234 Cash...........................................3--3 Other (b).........................................(1)--(1)Total...........................................$261$108$12$357 2010:Debtsecurities....................................$104$4$1$107Equitysecurities..................................141958228 Cash...........................................1--1 Other (b).........................................1--1 Total...........................................$247$99$9$337(a)Amountlessthan$1million.(b)Representspayablesrelatingtopendingsecuritypurchases,netofreceivablesrelatedtopendingsecuritiessalesandinterestreceivables.ThefollowingtablepresentsthecostsandfairvaluesofinvestmentsindebtsecuritiesinAmerenMissourisnucleardecommissioningtrustfundaccordingtotheircontractualmaturitiesatDecember31,2011:CostFairValueLessthan5years..............................................................................$57$595yearsto10years.............................................................................3436Dueafter10years..............................................................................2326 Total........................................................................................$114$121Wehaveunrealizedlossesrelatingtocertainavailable-for-saleinvestmentsincludedinourdecommissioningtrustfund,recordedasregulatoryassetsasdiscussedabove.Decommissioningwillnotoccuruntiltheoperatinglicenseforournuclear facilityexpires.AmerenMissourisubmittedalicenseextensionapplicationtotheNRCtoextendtheCallawayenergycenters operatinglicenseto2044.Thefollowingtablepresentsthefairvalueandthegrossunrealizedlossesoftheavailable-for-sale securitiesheldinAmerenMissourisnucleardecommissioningtrustfund.Theyareaggregatedbyinvestmentcategoryandthe lengthoftimethatindividualsecuritieshavebeeninacontinuousunrealizedlosspositionatDecember31,2011:Lessthan12Months12MonthsorGreaterTotalFairValue Gross UnrealizedLossesFairValue Gross UnrealizedLossesFairValue Gross Unrealized LossesDebtsecurities.....................................$7$(a)$(a)$(a)$7$(a)Equitysecurities....................................184882612 Total.............................................$25$4$8$8$33$12(a)Amountlessthan$1million.
136 NOTE10-CALLAWAYENERGYCENTERUndertheNWPA,theDOEisresponsiblefordisposingofspentnuclearfuelfromtheCallawayenergycenterand othercommercialnuclearpowerplants.UndertheNWPA, Amerenandotherutilitieswhoownandoperatethose plantsareresponsibleforpayingthedisposalcosts.The NWPAestablishedthefeethattheseutilitiespaythefederal governmentfordisposingofthespentnuclearfuelatone mill,orone-tenthofonecent,foreachkilowatthour generatedbythoseplantsandsold.TheNWPAalso requirestheDOEtoreviewthenuclearwastefeeagainstthe costofthenuclearwastedisposalprogramandtopropose totheUnitedStatesCongressanyfeeadjustmentnecessary tooffsetthecostsoftheprogram.Asrequiredbythe NWPA,Amerenandotherutilitieshaveenteredinto standardcontractswiththefederalgovernment.The government,representedbytheDOE,implementsthese provisionsoftheNWPA.ConsistentwiththeNWPAandits contract,AmerenMissouricollectsonemillfromitselectric customersforeachkilowatthourofelectricitythatit generatesandsellsfromitsCallawayenergycenter.AlthoughboththeNWPAandthestandardcontractstatedthatthefederalgovernmentwouldbegintodisposeof spentnuclearfuelby1998,thefederalgovernmenthas acknowledgedsinceatleast1994thatitwouldnotmeetthat deadline.Thefederalgovernmentisnotcurrentlypredicting whenitwillbegintomeetitsdisposalobligation.Ameren MissourihassufficientinstalledcapacityatitsCallaway energycentertostorethespentnuclearfuelgeneratedat Callawaythrough2020andhasthecapabilityforadditional storagecapacityforspentnuclearfuelgeneratedthroughthe endoftheenergycenterscurrentlicensedlife.UntilJanuary2009,theDOEprogramprovidedforspentnuclearfueldisposaltotakeplaceatageologic repositorytobeconstructedatYuccaMountain,Nevada.In January2009,theObamaadministrationannouncedthata repositoryatYuccaMountainwasunworkableandtook stepstoterminatetheYuccaMountainprogram,while acknowledgingthefederalgovernmentscontinuing obligationtodisposeofutilitiesspentnuclearfuel.In January2012,anadvisorycommissionestablishedbythe DOEissueditsreportofrecommendationsforthestorage anddisposalofspentnuclearfuel.Therecommendations coveredtopicssuchastheapproachtositingfuturenuclear wastemanagementfacilities,thetransportandstorageof spentfuelandhigh-levelwaste,optionsforwastedisposal, institutionalarrangementsformanagingspentnuclearfuel andhigh-levelwastes,andchangesneededinthehandling ofnuclearwastefeesandoftheNuclearWasteFund.Most oftheserecommendationsrequireactionbytheDOEand theUnitedStatesCongress.InviewofthefederalgovernmentseffortstoterminatetheYuccaMountainprogram,theNuclearEnergyInstitute, anumberofindividualutilities,andtheNationalAssociation ofRegulatoryUtilityCommissionerssuedtheDOEinthe UnitedStatesCourtofAppealsfortheDistrictofColumbia Circuitseekingthesuspensionoftheonemillnuclearwastefee.TheyallegethattheDOEsfailuretoundertakeanappropriatefeeadequacyreviewreflectsthecurrent unsettledstateofthenuclearwasteprogram.Thatcaseis pending.TheDOEdelayincarryingoutitsobligationto disposeofspentnuclearfuelfromtheCallawayenergy centerisnotexpectedtoadverselyaffectthecontinued operationoftheenergycenter.AsaresultofDOEsfailuretobuildarepositoryfornuclearwasteorotherwisefulfillitscontractobligations, AmerenMissouriandothernuclearpowerplantowners havealsosuedDOEtorecovercostsincurredforongoing storageoftheirspentfuel.AmerenMissourifiledabreach ofcontractsuitin2004torecover$13millionincoststhat itincurredthrough2009.Thisamountincludedthecostof rerackingtheCallawayenergycentersspentfuelpool,as wellascertainNRCfees,andMissouriadvaloremtaxes thatAmerenMissouriwouldnothaveincurredhadDOEperformeditscontractualobligations.InJune2011,thepartiesreachedasettlementthatincludedapaymentto AmerenMissouriof$11millionforspentfuelstorageand relatedcoststhrough2010and,thereafter,annualpayment ofsuchcostsaftertheyareincurredthrough2013orany othermutuallyagreedextension.Asaresultofthis settlementagreement,AmerenMissourirecordedapretax reductionof$2millionand$2milliontoitsOperating Expenses-DepreciationandamortizationandOperating Expenses-Otheroperationsandmaintenanceexpense lineitems,respectively,onitsstatementofincomeforthe yearendedDecember31,2011.AmerenMissourireduced itspropertyandplantassetsby$7million.Underthe settlement,AmerenMissouris2004breachofcontractsuit wasdismissedinJuly2011.InDecember2011,AmerenMissourisubmittedalicenseextensionapplicationwiththeNRCtoextendits Callawayenergycentersoperatinglicensefrom2024to 2044.ThereisnodatebywhichtheNRCmustactinthis relicensingrequest.IftheCallawayenergycenterslicense isextended,additionalspentfuelstoragewillberequired.
AmerenMissouriplanstoinstalladryspentfuelstorage facilityatitsCallawayenergycenterandintendstobegin transferringspentfuelassembliestothisfacilityby2020.ElectricutilityrateschargedtocustomersprovidefortherecoveryoftheCallawayenergycenters decommissioningcosts,whichincludedecontamination, dismantling,andsiterestorationcosts,overanassumed 40-yearlifeofthenuclearcenter,endingwiththeexpiration oftheenergycenterscurrentoperatinglicensein2024.It isassumedthattheCallawayenergycentersitewillbe decommissionedthroughtheimmediatedismantlement methodandremovedfromservice.AmerenandAmeren MissourihaverecordedanAROfortheCallawayenergy centerdecommissioningcostsatfairvalue,which representsthepresentvalueofestimatedfuturecash outflows.Decommissioningcostsareincludedinthecosts ofserviceusedtoestablishelectricratesforAmeren Missouriscustomers.Thesecostsamountedto$7million ineachoftheyears2011,2010,and2009.Everythree years,theMoPSCrequiresAmerenMissouritofilean 137 updatedcoststudyfordecommissioningitsCallawayenergycenter.Electricratesmaybeadjustedatsuchtimes toreflectchangedestimates.Thiscoststudywasfiledwith theMoPSCinSeptember2011.Afterconsideringthe resultsofthisupdatedcoststudyandassociatedfinancial analysis,AmerenMissourirecommendedtotheMoPSC thatthecurrentrateofdepositstothetrustfundcontinues tobeappropriateanddoesnotneedtobechanged.
Amountscollectedfromcustomersaredepositedinan externaltrustfundtoprovidefortheCallawayenergy centersdecommissioning.Iftheassumedreturnontrust assetsisnotearned,webelievethatitisprobablethatany suchearningsdeficiencywillberecoveredinrates.Thefair valueofthenucleardecommissioningtrustfundfor AmerenMissourisCallawayenergycenterisreportedas NucleardecommissioningtrustfundinAmerens consolidatedbalancesheetandAmerenMissourisbalance sheet.Thisamountislegallyrestrictedandmaybeused onlytofundthecostsofnucleardecommissioning.
Changesinthefairvalueofthetrustfundarerecordedas anincreaseordecreasetothenucleardecommissioning trustfund,withanoffsettingadjustmenttotherelated regulatoryassetorregulatoryliability.NOTE11-RETIREMENTBENEFITSTheprimaryobjectiveoftheAmerenpensionplansandpostretirementbenefitplansistoprovideeligibleemployees withpensionandpostretirementhealthcareandlife insurancebenefits.Amerenoffersdefinedbenefitpension andpostretirementbenefitplanscoveringsubstantiallyall ofitsemployees.Amerenusesameasurementdateof December31foritspensionandpostretirementbenefit plans.AmerenMissouri,AmerenIllinoisandGenco, excludingEEI,eachparticipateinAmerenssingle-employerpensionandotherpostretirementplans.AmerensqualifiedpensionplanistheAmerenRetirementPlan.Amerenalso hasanunfundednon-qualifiedpensionplan,theAmeren SupplementalRetirementPlan,whichisavailableforcertain managementemployeesandretireestoprovidea supplementalbenefitwhentheirqualifiedpensionplan benefitsarereducedtocomplywithInternalRevenueCode limitations.Amerensotherpostretirementplansarethe AmerenRetireeMedicalPlanandtheAmerenGroupLife InsurancePlan.Separately,EEIemployeesandretirees participateinEEIssingle-employerpensionandother postretirementplans.EEIspensionplanistheRevised RetirementPlanforEmployeesofElectricEnergy,Inc.EEIs otherpostretirementplansaretheGroupInsurancePlanfor ManagementEmployeesofElectricEnergy,Inc.andthe GroupInsurancePlanforBargainingUnitEmployeesof ElectricEnergy,Inc.NonaffiliatedAmerencompaniesdonot participateintheAmerenRetirementPlan,theAmeren SupplementalRetirementPlan,theAmerenRetireeMedical Plan,andtheAmerenGroupLifeInsurancePlan.Ameren andGencoeachconsolidateEEI,andtherefore,EEIsplans arereflectedinAmerensandGencospensionand postretirementbalancesanddisclosures.ThefollowingtablepresentsthebenefitliabilityrecordedonthebalancesheetsofeachoftheAmeren CompaniesasofDecember31,2011:
Ameren (a)......................................$
1,350AmerenMissouri................................494AmerenIllinois..................................496 Genco.........................................141(a)IncludesamountsforAmerenregistrantandnonregistrant subsidiaries.
138 Amerenrecognizestheunderfundedstatusofitspensionandpostretirementplansasaliabilityonitsbalancesheet,withoffsettingentriestoaccumulatedOCIandregulatoryassets,inaccordancewithauthoritativeaccountingguidance.The followingtablepresentsthefundedstatusofourpensionandpostretirementbenefitplansasofDecember31,2011,and 2010.ItalsoprovidestheamountsincludedinregulatoryassetsandaccumulatedOCIatDecember31,2011,and2010,that havenotbeenrecognizedinnetperiodicbenefitcosts.20112010PensionBenefits (a)Postretirement Benefits (a)PensionBenefits (a)Postretirement Benefits (a)Accumulatedbenefitobligationatendofyear
...............$3,645$(b)$3,246$(b)Changeinbenefitobligation:Netbenefitobligationatbeginningofyear
................$3,451$1,120$3,255$1,143Servicecost
.......................................75226820Interestcost
.......................................1805818562Planamendments (c)(d)................................(16)-(40)-Participantcontributions
..............................-18-17Actuarial(gain)loss
.................................34896165(53)Benefitspaid
.......................................(173)(66)(182)(74)Earlyretireereinsuranceprogramreceipt
.................(b)3(b)-Federalsubsidyonbenefitspaid
........................(b)6(b)5Netbenefitobligationatendofyear
.......................3,8651,2573,4511,120Changeinplanassets:Fairvalueofplanassetsatbeginningofyear
.............2,7227972,495732Actualreturnonplanassets
...........................224932881Employercontributions
...............................1031298136Federalsubsidyonbenefitspaid
........................(b)6(b)5Earlyretireereinsuranceprogramreceipt
.................(b)3(b)-Participantcontributions
..............................-18-17Benefitspaid
.......................................(173)(66)(182)(74)Fairvalueofplanassetsatendofyear
.....................2,8768962,722797Fundedstatus-deficiency
..............................989361729323AccruedbenefitcostatDecember31
......................$989$361$729$323Amountsrecognizedinthebalancesheetconsistof:Currentliability
.....................................$3$3$4$3Noncurrentliability
..................................986358725320 Total.............................................$989$361$729$323Amountsrecognizedinregulatoryassetsconsistof:Netactuarialloss
...................................$734$177$507$86Priorservicecost(credit)
.............................(7)(28)(11)(32)Transitionobligation
................................. 5Amounts(pretax)recognizedinaccumulatedOCIconsistof:Netactuarialloss
...................................79432413Priorservicecost(credit)
.............................(15)(7)4(10)Total.............................................$791$187$524$62(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.(b)Notapplicable.
(c)In2011,Amerenspensionplanwasamendedtoadjustthecalculationofthefuturebenefitobligationofapproximately430laborunion-representedemployeesfromatraditional,finalpayformulatoacashbalanceformula.(d)In2010,Amerenspensionplanwasamendedtoadjustthecalculationofthefuturebenefitobligationofapproximately700managementemployeesfromatraditional,finalpayformulatoacashbalanceformula.ThefollowingtablepresentstheassumptionsusedtodetermineourbenefitobligationsatDecember31,2011,and2010:PensionBenefitsPostretirementBenefits2011201020112010Discountrateatmeasurementdate
.............................................
4.50%5.25%4.50%5.25%Increaseinfuturecompensation
...............................................
3.50 3.50 3.50 3.50Medicalcosttrendrate(initial)
................................................
--5.50 6.00Medicalcosttrendrate(ultimate)
..............................................
--5.00 5.00Yearstoultimaterate
.......................................................
--1year2years 139 Amerendeterminesdiscountrateassumptionsbyusinganinterestrateyieldcurvepursuanttoauthoritative accountingguidanceonthedeterminationofdiscountrates usedfordefinedbenefitplanobligations.Theyieldcurveis basedontheyieldsofmorethan500high-qualitycorporate bondswithmaturitiesbetweenzeroand30years.A theoreticalspot-ratecurveconstructedfromthisyieldcurve isthenusedasaguidetodevelopadiscountratematching theplanspayoutstructure.
FundingPensionbenefitsarebasedontheemployeesyearsofserviceandcompensation.Amerenspensionplanisfunded incompliancewithincometaxregulationsandfederal fundingorregulatoryrequirements.Asaresult,Ameren expectstofunditspensionplanatalevelequaltothe greaterofthepensionexpenseorthelegallyrequired minimumcontribution.ConsideringAmerensassumptions atDecember31,2011,itsinvestmentperformancein2011, anditspensionfundingpolicy,Amerenexpectstomake annualcontributionsof$90millionto$150millionineach ofthenextfiveyears,withaggregateestimated contributionsof$580million.WeexpectAmeren Missouris,AmerenIllinoisandGencosportionofthe futurefundingrequirementstobe51%,33%,and12%,
respectively.Theseamountsareestimates.Theestimates maychangebasedonactualinvestmentperformance, changesininterestrates,changesinourassumptions,any pertinentchangesingovernmentregulations,andany voluntarycontributions.Ourfundingpolicyfor postretirementbenefitsisprimarilytofundtheVoluntary EmployeeBeneficiaryAssociation(VEBA)truststomatch theannualpostretirementexpense.Thefollowingtablepresentsthecashcontributionsmadetoourdefinedbenefitretirementplanandtoour postretirementplansduring2011,2010,and2009:PensionBenefitsPostretirementBenefits201120102009201120102009 Ameren (a)....$103$81$99$129$36$49AMO........
433642 91113AIC.........
282325 1182028 Genco.......12410---(a)IncludesamountsforAmerenregistrantandnonregistrant subsidiaries.InvestmentStrategyandPoliciesAmerenmanagesplanassetsinaccordancewiththeprudentinvestorguidelinescontainedinERISA.The investmentcommittee,totheextentauthorityisdelegated toitbythefinancecommitteeofAmerensboardof directors,implementsinvestmentstrategyandasset allocationguidelinesfortheplanassets.Theinvestment committeeincludesmembersofseniormanagement.The investmentcommitteesgoalsaretwofold:first,toensure thatsufficientfundsareavailabletoprovidethebenefitsat thetimetheyarepayable,andsecond,tomaximizetotal returnonplanassetsandminimizeexpensevolatility consistentwithitstoleranceforrisk.Amerendelegates investmentmanagementtospecialistsineachassetclass.
Asappropriate,Amerenprovidestheinvestmentmanager withguidelinesthatspecifyallowableandprohibited investmenttypes.Theinvestmentcommitteeregularly monitorsmanagerperformanceandcompliancewith investmentguidelines.Theexpectedreturnonplanassetsassumptionisbasedonhistoricalandprojectedratesofreturnforcurrent andplannedassetclassesintheinvestmentportfolio.
Projectedratesofreturnforeachassetclasswere estimatedafterananalysisofhistoricalexperience,future expectations,andthevolatilityofthevariousassetclasses.
Afterconsideringthetargetassetallocationforeachasset class,weadjustedtheoverallexpectedrateofreturnforthe portfolioforhistoricalandexpectedexperienceofactive portfoliomanagementresultscomparedwithbenchmark returnsandfortheeffectofexpensespaidfromplanassets.
Amerenwillutilizeanexpectedreturnonplanassetsforits pensionplanassetsandpostretirementplanassetsof 7.75%and7.50%,respectively,in2012.Noplanassetsare expectedtobereturnedtoAmerenduring2012.
140 Amerensinvestmentcommitteestrivestoassembleaportfolioofdiversifiedassetsthatdoesnotcreateasignificantconcentrationofrisks.Theinvestmentcommitteedevelopsassetallocationguidelinesbetweenassetclasses,anditcreates diversificationthroughinvestmentsinassetsthatdifferbytype(equity,debt,realestate,privateequity),duration,market capitalization,country,style(growthorvalue)andindustry,amongotherfactors.Thediversificationofassetsisdisplayedin thetargetallocationtablebelow.Theinvestmentcommitteealsoroutinelyrebalancestheplanassetstoadheretothe diversificationgoals.Theinvestmentcommitteesstrategyreducestheconcentrationofinvestmentrisk;however,Amerenis stillsubjecttooverallmarketrisk.Thefollowingtablepresentsourtargetallocationsfor2012andourpensionand postretirementplansassetcategoriesasofDecember31,2011,and2010.
Asset CategoryTargetAllocation 2012PercentageofPlanAssetsatDecember31,20112010PensionPlan:Cashandcashequivalents........................................0-5%
2%1%Equitysecurities:U.S.largecapitalization........................................29-39 33 31U.S.smallandmid-capitalization.................................2-12 7 11Internationalandemergingmarkets...............................9-19 11 15Totalequity....................................................50-60 51 57Debtsecurities.................................................35-45 42 37Realestate....................................................0-9 4 4Privateequity..................................................0-4 1 1 Total.........................................................
100%100%PostretirementPlans:Cashandcashequivalents........................................0-10%
4%4%Equitysecurities:U.S.largecapitalization........................................33-43 38 39U.S.smallandmid-capitalization.................................3-13 8 10 International.................................................10-20 13 14Totalequity....................................................55-65 59 63Debtsecurities.................................................30-40 37 33 Total.........................................................
100%100%Ingeneral,theU.S.largecapitalizationequityinvestmentsarepassivelymanagedorindexed,whereastheinternational,emergingmarkets,U.S.smallcapitalization,andU.S.mid-capitalizationequityinvestmentsareactivelymanagedby investmentmanagers.Debtsecuritiesincludeabroadrangeoffixedincomevehicles.Debtsecurityinvestmentsinhigh-yield securities,emergingmarketsecurities,andnon-U.S.dollar-denominatedsecuritiesareownedbytheplans,butinlimited quantitiestoreducerisk.Mostofthedebtsecurityinvestmentsareunderactivemanagementbyinvestmentmanagers.Real estateinvestmentsincludeprivaterealestatevehicles;however,Amerendoesnot,bypolicy,holddirectinvestmentsinreal estateproperty.Amerensinvestmentinprivateequityfundsconsistsof10differentlimitedpartnerships,withinvestedcapital rangingfrom$0.1millionto$7millioneach,whichinvestprimarilyinadiversifiednumberofsmallU.S.-basedcompanies.No furthercommitmentsmaybemadetoprivateequityinvestmentswithoutapprovalbythefinancecommitteeoftheboardof directors.Additionally,Amerensinvestmentcommitteeallowsinvestmentmanagerstousederivatives,suchasindexfutures, exchangetradedfunds,foreignexchangefutures,andoptions,incertainsituations,toincreaseortoreducemarketexposure inanefficientandtimelymanner.FairValueMeasurementsofPlanAssetsInvestmentsinthepensionandpostretirementbenefitplanswerestatedatfairvalueasofDecember31,2011.Thefairvalueofanassetistheamountthatwouldbereceiveduponsaleinanorderlytransactionbetweenmarketparticipantsatthe measurementdate.Cashandcashequivalentshaveinitialmaturitiesofthreemonthsorlessandarerecordedatcostplus accruedinterest.Thecarryingamountsofcashandcashequivalentsapproximatefairvaluebecauseoftheshort-termnature oftheseinstruments.Investmentstradedinactivemarketsonnationalorinternationalsecuritiesexchangesarevaluedat closingpricesonthelastbusinessdayonorbeforethemeasurementdate.Securitiestradedinover-the-countermarketsare valuedbasedonquotedmarketprices,brokerordealerquotations,oralternativepricingsourceswithreasonablelevelsof pricetransparency.Derivativecontractsarevaluedatfairvalue,asdeterminedbytheinvestmentmanagers(orindependent thirdpartiesonbehalfoftheinvestmentmanagers),whouseproprietarymodelsandtakeintoconsiderationexchange quotationsonunderlyinginstruments,dealerquotations,andothermarketinformation.Thefairvalueofrealestateisbased onannualappraisalreportspreparedbyanindependentrealestateappraiser.
141 Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchydiscussedinNote8-FairValueMeasurements,thepensionplanassetsmeasuredatfairvalueasofDecember31,2011:QuotedPricesinActiveMarketsforIdentifiedAssets(Level1)SignificantOtherObservableInputs(Level2)SignificantOther Unobservable Inputs(Level3)TotalCashandcashequivalents..................................$-$31$-$31Equitysecurities:U.S.largecapitalization..................................72922-994U.S.smallandmid-capitalization...........................20211-213Internationalandemergingmarkets.........................115213-328Debtsecurities:Corporatebonds........................................-720-720Municipalbonds........................................-176-176U.S.treasuryandagencysecurities.........................-230-230 Other.................................................-121-121Realestate..............................................--108108Privateequity............................................--2323Derivativeassets..........................................1--1Derivativeliabilities........................................(1)--(1)
Total...................................................$389$2,424$131$2,944Less:MedicalbenefitassetsatDecember31 (a)..................
(91)Plus:NetreceivablesatDecember31 (b)........................23Fairvalueofpensionplansassetsatyearend...................$
2,876(a)Medicalbenefit(healthandwelfare)componentforaccountsmaintainedinaccordancewithSection401(h)oftheInternalRevenueCode(401(h)accounts)tofundaportionofthepostretirementobligation.(b)Receivablesrelatedtopendingsecuritysales,offsetbypayablesrelatedtopendingsecuritypurchases.Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchydiscussedinNote8-FairValueMeasurements,thepensionplanassetsmeasuredatfairvalueasofDecember31,2010:QuotedPricesinActiveMarketsforIdentifiedAssets(Level1)SignificantOtherObservableInputs(Level2)SignificantOther Unobservable Inputs(Level3)TotalCashandcashequivalents..................................$-$20$-$20Equitysecurities:U.S.largecapitalization..................................70812-882U.S.smallandmid-capitalization...........................29910-309Internationalandemergingmarkets.........................129284-413Debtsecurities:Corporatebonds........................................-646-646Municipalbonds........................................-129-129U.S.treasuryandagencysecurities.........................-154-154 Other.................................................-100-100Realestate..............................................--9898Privateequity............................................--2828Derivativeassets..........................................1--1Derivativeliabilities........................................(1)--(1)
Total...................................................$498$2,155$126$2,779Less:MedicalbenefitassetsatDecember31 (a)..................
(85)Plus:NetreceivablesatDecember31 (b)........................28Fairvalueofpensionplansassetsatyearend...................$
2,722(a)Medicalbenefit(healthandwelfare)componentforaccountsmaintainedinaccordancewithSection401(h)oftheInternalRevenueCode(401(h)accounts)tofundaportionofthepostretirementobligation.(b)Receivablesrelatedtopendingsecuritysales,offsetbypayablesrelatedtopendingsecuritypurchases.
142 ThefollowingtablesummarizesthechangesinthefairvalueofthepensionplanassetsclassifiedasLevel3inthefairvaluehierarchyforeachoftheyearsendedDecember31,2011,and2010:
BeginningBalanceat January1,ActualReturnonPlanAssetsRelatedtoAssetsStillHeldattheReportingDateActualReturnonPlanAssetsRelatedtoAssetsSoldDuringthePeriod Purchases,Sales,andSettlements,net Net Transfersinto(outof)ofLevel3EndingBalanceatDecember31, 2011:Realestate
.................$98$10$-$-$-$108Privateequity
...............28(10)11(6)-23 2010:Otherdebtsecurities..........$1$-$-$(1)$-$-Realestate.................907-1-98Privateequity...............33(5)7(7)-28Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchydiscussedinNote8-FairValueMeasurements,thepostretirementbenefitplansassetsmeasuredatfairvalueasofDecember31,2011:QuotedPricesinActiveMarketsforIdentifiedAssets(Level1)SignificantOtherObservableInputs(Level2)SignificantOther Unobservable Inputs(Level3)TotalCashandcashequivalents....................................$1$66$-$67Equitysecurities:U.S.largecapitalization....................................23578-313U.S.smallandmid-capitalization.............................57--57 International.............................................4456-100Debtsecurities:Corporatebonds.........................................-61-61Municipalbonds.........................................-86-86U.S.treasuryandagencysecurities...........................-82-82Asset-backedsecurities....................................-23-23 Other..................................................-49-49 Total....................................................$337$501$-$838Plus:MedicalbenefitassetsatDecember31 (a)....................91Less:NetpayablesatDecember31 (b)...........................
(33)Fairvalueofpostretirementbenefitplansassetsatyearend..........$896(a)Medicalbenefit(healthandwelfare)componentfor401(h)accountstofundaportionofthepostretirementobligation.These401(h)assetsareincludedinthepensionplanassetsshownabove.(b)Payablesrelatedtopendingsecuritypurchases,offsetbyMedicare,interestreceivables,andreceivablesrelatedtopendingsecuritysales.Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchydiscussedinNote8-FairValueMeasurements,thepostretirementbenefitplansassetsmeasuredatfairvalueasofDecember31,2010:QuotedPricesinActiveMarketsforIdentifiedAssets(Level1)SignificantOtherObservableInputs(Level2)SignificantOther Unobservable Inputs(Level3)TotalCashandcashequivalents....................................$-$35$-$35Equitysecurities:U.S.largecapitalization....................................21572-287U.S.smallandmid-capitalization.............................66--66 International.............................................4351-94Debtsecurities:Corporatebonds.........................................-59-59Municipalbonds.........................................-58-58U.S.treasuryandagencysecurities...........................-59-59Asset-backedsecurities....................................-31-31 Other..................................................-29-29 Total....................................................$324$394$-$718Plus:MedicalbenefitassetsatDecember31 (a)....................85Less:NetpayablesatDecember31 (b)...........................(6)Fairvalueofpostretirementbenefitplansassetsatyearend..........$797(a)Medicalbenefit(healthandwelfare)componentfor401(h)accountstofundaportionofthepostretirementobligation.These401(h)assetsareincludedinthepensionplanassetsshownabove.(b)Payablesrelatedtopendingsecuritypurchases,offsetbyMedicare,interestreceivables,andreceivablesrelatedtopendingsecuritysales.
143 NetPeriodicBenefitCostThefollowingtablepresentsthecomponentsofthenetperiodicbenefitcostofourpensionandpostretirementbenefitplansduring2011,2010,and2009:PensionBenefitsPostretirementBenefits Ameren (a)Ameren (a)2011:Servicecost
..................................................................$75$22Interestcost
..................................................................18058Expectedreturnonplanassets
....................................................(216)(54)Amortizationof:Transitionobligation
..........................................................
-2Priorservicecost
............................................................(1)(8)Actuarialloss
...............................................................425Netperiodicbenefitcost
.........................................................$80$25 2010:Servicecost..................................................................$68$20Interestcost..................................................................18562Expectedreturnonplanassets
....................................................(212)(56)Amortizationof:Transitionobligation..........................................................-2Priorservicecost............................................................6(8)Actuarialloss...............................................................181Netperiodicbenefitcost.........................................................$65$21 2009:Servicecost..................................................................$68$19Interestcost..................................................................18666Expectedreturnonplanassets
....................................................(206)(54)Amortizationof:Transitionobligation..........................................................-2Priorservicecost............................................................9(8)Actuarialloss...............................................................249Netperiodicbenefitcost.........................................................$81$34(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.Thecurrentyearexpectedreturnonplanassetsisdeterminedprimarilybyadjustingtheprior-yearmarket-relatedassetvalueforcurrentyearcontributions,disbursements,andexpectedreturn,plus25%oftheactualreturn inexcessof(orlessthan)expectedreturnforthefourprioryears.TheestimatedamountsthatwillbeamortizedfromregulatoryassetsandaccumulatedOCIintonetperiodicbenefitcostin2012areasfollows:PensionBenefitsPostretirementBenefits Ameren (a)Ameren (a)Regulatoryassets:Transitionobligation..........................................................$-$2Priorservicecost(credit)......................................................(1)(4)Netactuarialloss.............................................................8723AccumulatedOCI:Transitionobligation..........................................................--Priorservicecost(credit)......................................................(1)(1)Netactuarialloss.............................................................63 Total........................................................................$91$23(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.Priorservicecostisamortizedonastraight-linebasisovertheaveragefutureserviceofactiveparticipantsbenefitingundertheplanamendment.Thenetactuariallosssubjecttoamortizationisamortizedonastraight-linebasisover10years.
144 AmerenMissouri,AmerenIllinoisandGencoareresponsiblefortheirshareofthepensionandpostretirementbenefitcosts.Thefollowingtablepresentsthepensioncostsandthepostretirementbenefitcostsincurredfortheyearsended December31,2011,2010,and2009:PensionCostsPostretirementCosts201120102009201120102009 Ameren (a).........................................$80$65$81$25$21$34AmerenMissouri
....................................
514250 111115AmerenIllinois
.....................................
161014 11716 Genco............................................
8911 3 23(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.Theexpectedpensionandpostretirementbenefitpaymentsfromqualifiedtrustandcompanyfundsandthefederalsubsidyforpostretirementbenefitsrelatedtoprescriptiondrugbenefits,whichreflectexpectedfutureservice,asof December31,2011,areasfollows:PensionBenefitsPostretirementBenefitsPaidfrom Qualified TrustPaidfrom Company FundsPaidfrom Qualified TrustPaidfrom Company Funds Federal Subsidy 2012..........................................$223$3$68$3$5 2013..........................................22537135 2014..........................................23037435 2015..........................................23137736 2016..........................................232380362017-2021....................................1,167124431432ThefollowingtablepresentstheassumptionsusedtodeterminenetperiodicbenefitcostforourpensionandpostretirementbenefitplansfortheyearsendedDecember31,2011,2010,and2009:PensionBenefitsPostretirementBenefits201120102009201120102009Discountrateatmeasurementdate
............................
5.25%5.75%5.75%
5.25%5.75%5.75%Expectedreturnonplanassets
...............................
8.008.008.00 7.758.008.00Increaseinfuturecompensation
..............................
3.503.504.00 3.503.504.00Medicalcosttrendrate(initial)
...............................
---6.006.507.00Medicalcosttrendrate(ultimate)
.............................
---5.005.005.00Yearstoultimaterate
.......................................
---2years3years4yearsThetablebelowreflectsthesensitivityofAmerensplanstopotentialchangesinkeyassumptions:PensionBenefitsPostretirementBenefitsServiceCostandInterest Cost Projected Benefit ObligationServiceCostandInterest Cost Postretirement Benefit Obligation0.25%decreaseindiscountrate...............................$(2)$110$-$380.25%increaseinsalaryscale................................214--1.00%increaseinannualmedicaltrend.........................--3421.00%decreaseinannualmedicaltrend.........................--(3)
(41)OtherAmerensponsorsa401(k)planforeligibleemployees.TheAmerenplancoveredalleligibleemployeesoftheAmerenCompaniesatDecember31,2011.Theplansallowedemployeestocontributeaportionoftheircompensationinaccordance withspecificguidelines.Amerenmatchedapercentageoftheemployeecontributionsuptocertainlimits.Thefollowingtable presentstheportionofthe401(k)matchingcontributiontotheAmerenplanattributabletoeachoftheAmerenCompaniesfor theyearsendedDecember31,2011,2010,and2009:201120102009 Ameren (a)..........................................................................$28$27$24AmerenMissouri
.....................................................................
161614AmerenIllinois
......................................................................
8 87 Genco.............................................................................
2 12(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.
145 NOTE12-STOCK-BASEDCOMPENSATIONAmerenslong-termincentiveplanforeligibleemployees,calledtheLong-termIncentivePlanof1998(1998Plan),wasreplacedprospectivelybythe2006OmnibusIncentiveCompensationPlan(2006Plan)effectiveMay2,2006.The2006Plan providesforamaximumof4millioncommonsharestobeavailableforgranttoeligibleemployeesanddirectors.Nonew awardsmaybegrantedunderthe1998Plan.Previouslygrantedawardshavevestedinaccordancewiththeiroriginalterms andconditions.The2006Planawardsmaybestockoptions,stockappreciationrights,restrictedstock,restrictedstockunits, performanceshares,performanceshareunits,cash-basedawards,andotherstock-basedawards.AsummaryofnonvestedsharesatDecember31,2011,andchangesduringtheyearendedDecember31,2011,underthe1998Planandthe2006Planarepresentedbelow:PerformanceShareUnits (a)RestrictedShares (b)Share Units Weighted-averageFairValueperUnitShares Weighted-averageFairValueperShareNonvestedatJanuary1,2011
........................1,142,768$23.9683,154$49.87 Granted (c).......................................731,96231.41--
Dividends.......................................--1,00530.04Unearnedorforfeited (d).............................(565,538)16.28(560)50.45Earnedandvested (e)...............................(152,361)29.47(83,599)49.89NonvestedatDecember31,2011
.....................1,156,831$31.70-$-(a)Grantedunderthe2006Plan.(b)Grantedunderthe1998Plan.
(c)Includesperformanceshareunits(shareunits)grantedtocertainexecutiveandnonexecutiveofficersandothereligibleemployeesinJanuary2011underthe2006Plan.(d)Includesshareunitsgrantedin2009thatwerenotearnedbasedonperformanceprovisionsoftheawardgrants.
(e)Includesshareunitsgrantedin2009thatvestedasofDecember31,2011,thatwereearnedpursuanttotheprovisionsoftheawardgrants.Alsoincludesshareunitsthatvestedduetoattainmentofretirementeligibilitybycertainemployees.Actualsharesissuedforretirement-eligibleemployeeswillvarydependingonactualperformanceoverthethree-yearmeasurementperiod.Amerenrecordedcompensationexpenseof$14million,$13million,and$13millionfortheyearsended December31,2011,2010,and2009,respectively,anda relatedtaxbenefitof$5millionforeachoftheyearsended December31,2011,2010,and2009,respectively.Ameren settledperformanceshareunitsandrestrictedsharesof
$4million,$2million,andlessthan$1millionfortheyears endedDecember31,2011,2010,and2009.Therewereno significantcompensationcostscapitalizedduringtheyears endedDecember31,2011,2010,and2009.Asof December31,2011,totalcompensationcostof$17million relatedtononvestedawardsnotyetrecognizedisexpectedto berecognizedoveraweighted-averageperiodof20months.PerformanceShareUnitsPerformanceshareunitawardshavebeengrantedunderthe2006Plan.Ashareunitvestsandentitlesan employeetoreceivesharesofAmerencommonstock(plus accumulateddividends)if,attheendofthethree-year performanceperiod,certainspecifiedperformanceor marketconditionshavebeenmetandtheindividualremains employedbyAmeren.Theexactnumberofsharesissued pursuanttoashareunitvaryfrom0%to200%ofthetarget award,dependingonactualcompanyperformancerelative totheperformancegoals.Forperformanceshareunits grantedpriorto2009,vestedperformancesharesunits mustbeheldforatwo-yearperiodbeforebeingpaidtotheemployeeinsharesofAmerencommonstock.Duringthistwo-yearholdperiod,theemployeeispaiddividend equivalentsonacurrentbasis.ThefairvalueofeachshareunitawardedinJanuary2011underthe2006Planwasdeterminedtobe$31.41.
ThatamountwasbasedonAmerensclosingcommon sharepriceof$28.19atDecember31,2010,andlattice simulations.Latticesimulationsareusedtoestimate expectedsharepayoutbasedonAmerenstotalshareholder returnforathree-yearperformanceperiodrelativetothe designatedpeergroupbeginningJanuary1,2011.The simulationscanproduceagreaterfairvaluefortheshare unitthantheclosingcommonsharepricebecausethey includetheweightedpayoutscenariosinwhichanincrease inthesharepricehasoccurred.Thesignificant assumptionsusedtocalculatefairvaluealsoincludeda three-yearrisk-freerateof1.08%,volatilityof22%to36%
forthepeergroup,andAmerensattainmentofthree-year averageearningspersharethresholdduringthe performanceperiod.ThefairvalueofeachshareunitawardedinJanuary2010underthe2006Planwasdeterminedtobe$32.01.
ThatamountwasbasedonAmerensclosingcommon sharepriceof$27.95atDecember31,2009,andlattice simulations.Latticesimulationsareusedtoestimate expectedsharepayoutbasedonAmerenstotalstockholder returnforathree-yearperformanceperiodrelativetothe designatedpeergroupbeginningJanuary1,2010.The 146 significantassumptionsusedtocalculatefairvaluealsoincludedathree-yearrisk-freerateof1.70%,volatilityof 23%to39%forthepeergroup,andAmerensattainment ofthree-yearaverageearningspersharethresholdduring eachyearoftheperformanceperiod.RestrictedStockRestrictedstockawardsofAmerencommonstockweregrantedunderthe1998Planfrom2001to2005.
Restrictedshareshadthepotentialtovestoveraseven-yearperiodfromthedateofgrantifAmerenachieved certainperformancelevels.Anacceleratedvestingprovision includedinthisplanreducedthevestingperiodfromseven yearstothreeyearsiftheearningsgrowthrateexceededa prescribedlevel.NOTE13-INCOMETAXESThefollowingtablepresentstheprincipalreasonswhytheeffectiveincometaxratedifferedfromthestatutoryfederalincometaxratefortheyearsendedDecember31,2011,2010,and2009:AmerenAmerenMissouriAmerenIllinoisGenco 2011:Statutoryfederalincometaxrate:
.................................35%35%35%35%Increases(decreases)from:Productionactivitiesdeduction
..............................---3Depreciationdifferences
...................................(1)(2)--Amortizationofinvestmenttaxcredit
..........................(1)(1)(1)(1)Statetax................................................4356Taxcredits
..............................................---(1)Otherpermanentitems (a)...................................-1--Effectiveincometaxrate
.......................................37%36%39%42%
2010:Statutoryfederalincometaxrate:.................................35%35%35%35%Increases(decreases)from:Non-deductibleimpairmentofgoodwill........................32--
(144)Productionactivitiesdeduction..............................---7Depreciationdifferences...................................(4)(3)--Amortizationofinvestmenttaxcredit..........................(2)(1)(1)4Statetax................................................835 (14)Reserveforuncertaintaxpositions...........................(1)--(6)Taxcredits..............................................(3)--13Changeinfederaltaxlaw (b).................................31-(19)Otherpermanentitems (c)...................................---(1)Effectiveincometaxrate.......................................68%35%39%
(125)%2009:Statutoryfederalincometaxrate:.................................35%35%35%35%Increases(decreases)from:Depreciationdifferences...................................(1)(3)(1)-Amortizationofinvestmenttaxcredit..........................(1)(1)(1)-Statetax................................................5354Reserveforuncertaintaxpositions...........................(1)---Otherpermanentitems (d)...................................(1)-(1)(1)Taxcredits..............................................(1)(1)--Effectiveincometaxrate.......................................35%33%37%38%(a)PermanentitemsaretreateddifferentlyforbookandtaxpurposesandprimarilyincludenondeductibleexpensesrelatedtolobbyingandstockissuanceexpensesforAmerenMissouri.(b)Relatestochangeintaxationofprescriptiondrugbenefitstoretireeparticipantsfromtheenactmentin2010ofthePatientProtectionandAffordableCareActandtheHealthCareandEducationReconciliationBillof2010.(c)PermanentitemsaretreateddifferentlyforbookandtaxpurposesandprimarilyincludenondeductibleexpensesforGenco.
(d)PermanentitemsaretreateddifferentlyforbookandtaxpurposesandprimarilyincludeInternalRevenueCodeSection199productionactivitydeductionsforAmerenandGenco,company-ownedlifeinsuranceforAmerenandAmerenIllinois,employeestockownershipplandividends forAmeren,andnondeductibleexpensesforAmerenIllinois.
147 Thefollowingtablepresentsthecomponentsofincometaxexpense(benefit)fortheyearsendedDecember31,2011,2010,and2009:
Ameren (a)AmerenMissouriAmerenIllinoisGenco 2011:Currenttaxes:
Federal..................................................$(27)$3$(24)$(21)
State....................................................(5)2(4)(7)Deferredtaxes:
Federal..................................................27312912343 State....................................................76313418Deferredinvestmenttaxcredits,amortization
.......................(7)(4)(2)(1)Totalincometaxexpense
......................................$310$161$127$32 2010:Currenttaxes:
Federal..................................................$13$(14)$(20)$(5)
State....................................................10(15)(5)6Deferredtaxes:
Federal..................................................27420613222 State....................................................362732(2)Deferredinvestmenttaxcredits,amortization.......................(8)(5)(2)(1)Totalincometaxexpense......................................$325$199$137$20 2009:Currenttaxes:
Federal..................................................$(73)$(117)$(8)$22 State....................................................3(31)1414Deferredtaxes:
Federal..................................................3372396457 State....................................................7442119Deferredinvestmenttaxcredits,amortization.......................(9)(5)(2)(1)Totalincometaxexpense......................................$332$128$79$101(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.TheIllinoiscorporateincometaxrateincreasedfrom7.3%to9.5%,startinginJanuary2011.Thetaxrateisscheduledtodecreaseto7.75%in2015,anditisscheduledtoreturnto7.3%in2025.ThiscorporateincometaxrateincreaseinIllinois increasedcurrentincometaxexpensein2011by$6million,$4millionand$3millionforAmeren,AmerenIllinoisandGenco, respectively.Asaresultofthiscorporateincometaxrateincrease,accumulateddeferredtaxbalanceswererevalued,resulting inadecreaseindeferredtaxexpenseof$2million,$3millionand$-millionforAmeren,AmerenIllinois,andGenco, respectively.ThefollowingtablepresentsthedeferredtaxassetsanddeferredtaxliabilitiesrecordedasaresultoftemporarydifferencesatDecember31,2011,and2010:
Ameren (a)AmerenMissouriAmerenIllinoisGenco 2011:Accumulateddeferredincometaxes,netliability(asset):Plantrelated
..............................................$3,811$2,134$1,003$457Deferredintercompanytaxgain/basisstep-up
....................3(1)55(54)Regulatoryassets,net
.......................................7373--Deferredemployeebenefitcosts
...............................(367)(88)(109)(67)Purchaseaccounting
........................................35-(27)15ARO.....................................................(37)-1(25)
Other....................................................(223)6(86)(22)Totalnetaccumulateddeferredincometaxliabilities (b)................$3,295$2,124$837$304 2010:Accumulateddeferredincometaxes,netliability(asset):Plantrelated..............................................$3,310$1,974$750$378Deferredintercompanytaxgain/basisstep-up....................2(2)71 (68)Regulatoryassets(liabilities),net..............................6768(1)-Deferredemployeebenefitcosts
...............................(360)(87)(124)(45)Purchaseaccounting........................................106-4117ARO.....................................................(48)(9)1(27)
Other....................................................(120)7(57)10Totalnetaccumulateddeferredincometaxliabilities (c)................$2,957$1,951$681$265(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.
148 (b)Includes$20million,$8millionand$58millionascurrentassetsrecordedinthebalancesheetforAmeren,AmerenMissouriandAmerenIllinois,respectively.(c)Includes$43millionascurrentassetsrecordedinthebalancesheetforAmerenIllinois.Includes$71million,$43millionand$12millionascurrentliabilitiesrecordedinthebalancesheetsforAmeren,AmerenMissouriandGenco,respectively.ThefollowingtablepresentsthecomponentsofdeferredtaxassetsrelatingtonetoperatinglosscarryforwardsandtaxcreditcarryforwardsatDecember31,2011:
Ameren Ameren Missouri AmerenIllinoisGencoNetoperatinglosscarryforwards:
Federal (a)..............................................$136$50$33$8 State (b)...............................................1736-Totalnetoperatinglosscarryforwards.........................$153$53$39$8Taxcreditcarryforwards:
Federal (c)..............................................$72$11$-$1 State (d)...............................................281-4Totaltaxcreditcarryforwards................................$100$12$-$5(a)Thesewillbegintoexpirein2028.(b)Thesewillbegintoexpirein2017.
(c)Thesewillbegintoexpirein2029.
(d)Thesewillbegintoexpirein2012.UncertainTaxPositionsAreconciliationofthechangeintheunrecognizedtaxbenefitbalanceduringtheyearsendedDecember31,2009,2010,and2011,isasfollows:
Ameren Ameren Missouri AmerenIllinoisGencoUnrecognizedtaxbenefits-January1,2009....................$110$20$-$48Increasesbasedontaxpositionspriorto2009................9076-9Decreasesbasedontaxpositionspriorto2009
................(84)(19)-(31)Increasesbasedontaxpositionsrelatedto2009...............1911-3Changesrelatedtosettlementswithtaxingauthorities...........----Decreasesrelatedtothelapseofstatuteoflimitations...........----Unrecognizedtaxbenefits-December31,2009.................$135$88$-$29Increasesbasedontaxpositionspriorto2010................7240274Decreasesbasedontaxpositionspriorto2010
................(38)(12)(2)(16)Increasesbasedontaxpositionsrelatedto2010...............7748313Changesrelatedtosettlementswithtaxingauthorities...........----Decreasesrelatedtothelapseofstatuteoflimitations...........----Unrecognizedtaxbenefits-December31,2010.................$246$164$56$20Increasesbasedontaxpositionspriorto2011
................2215-1Decreasesbasedontaxpositionspriorto2011
................(125)(63)(41)(12)Increasesbasedontaxpositionsrelatedto2011
...............1713-1Changesrelatedtosettlementswithtaxingauthorities
...........(10)(5)(4)-Decreasesrelatedtothelapseofstatuteoflimitations
...........(2)--(1)Unrecognizedtaxbenefits-December31,2011
.................$148$124$11$9Totalunrecognizedtaxbenefits(detriments)that,ifrecognized,wouldaffecttheeffectivetaxratesasofDecember31,2009...........$6$3$-$-Totalunrecognizedtaxbenefitsthat,ifrecognized,wouldaffecttheeffectivetaxratesasofDecember31,2010...................$-$3$-$1Totalunrecognizedtaxbenefitsthat,ifrecognized,wouldaffecttheeffectivetaxratesasofDecember31,2011
...................$1$1$-$1TheAmerenCompaniesrecognizeinterestcharges(income)andpenaltiesaccruedontaxliabilitiesonapretaxbasisasinterestcharges(income)ormiscellaneousexpenseinthestatementsofincome.
149 AreconciliationofthechangeintheliabilityforinterestonunrecognizedtaxbenefitsduringtheyearsendedDecember31,2009,2010,and2011,isasfollows:
Ameren Ameren Missouri AmerenIllinoisGencoLiabilityforinterest-January1,2009.....................................$10$2$-$4Interestcharges(income)for2009.....................................(2)2-(2)Liabilityforinterest-December31,2009..................................$8$4$-$2Interestchargesfor2010.............................................962-Liabilityforinterest-December31,2010..................................$17$10$2$2Interestincomefor2011
.............................................(11)(3)(1)(1)Interestpayment
....................................................(1)(1)--Liabilityforinterest-December31,2011
..................................$5$6$1$1AsofDecember31,2009,December31,2010,andDecember31,2011,theAmerenCompanieshaveaccruednoamountforpenaltieswithrespecttounrecognizedtaxbenefits.Inthesecondquarterof2011,afinalsettlementfortheyears2005and2006wasreachedwiththeInternalRevenueService.Itresultedinthereductionofuncertaintaxliabilitiesby$39million,$17million,$12million,and$4millionfor Ameren,AmerenMissouri,AmerenIllinoisandGenco,respectively.Amerensfederalincometaxreturnsfortheyears2007 through2009arebeforetheAppealsOfficeoftheInternalRevenueService.Amerensfederalincometaxreturnfortheyear 2010iscurrentlyunderexamination.Stateincometaxreturnsaregenerallysubjecttoexaminationforaperiodofthreeyearsafterfilingofthereturn.Thestateimpactofanyfederalchangesremainssubjecttoexaminationbyvariousstatesforaperiodofuptooneyearafterformal notificationtothestates.TheAmerenCompaniesdonotcurrentlyhavematerialstateincometaxissuesunderexamination, administrativeappeals,orlitigation.ItisexpectedthatapartialsettlementwillbereachedwiththeAppealsOfficeoftheInternalRevenueServiceinthenexttwelvemonthsfortheyears2007through2009thatwouldresultinadecreaseinuncertaintaxliabilities.Inaddition,itis reasonablypossiblethatothereventswilloccurduringthenext12monthsthatwouldcausethetotalamountofunrecognized taxbenefitsfortheAmerenCompaniestoincreaseordecrease.However,theAmerenCompaniesdonotbelieveanysuch increasesordecreaseswouldbematerialtotheirresultsofoperations,financialposition,orliquidity.NOTE14-RELATEDPARTYTRANSACTIONSTheAmerenCompanieshaveengagedin,andmayinthefutureengagein,affiliatetransactionsinthenormal courseofbusiness.Thesetransactionsprimarilyconsistof naturalgasandpowerpurchasesandsales,services receivedorrendered,andborrowingsandlendings.
Transactionsbetweenaffiliatesarereportedas intercompanytransactionsontheirfinancialstatements,but areeliminatedinconsolidationforAmerensfinancial statements.Belowarethematerialrelatedparty
agreements.ElectricPowerSupplyAgreementsGencoPowerSupplyAgreementsThefollowingtablepresentstheamountofphysicalgigawatthoursalesunderGencosrelatedpartyelectric powersupplyagreementswithMarketingCompany, includingEEIspowersupplyagreementwithMarketing Company,fortheyearsendedDecember31,2011,2010, and2009:December31,201120102009GencosalestoMarketingCompany
.....21,04021,65619,598Gencoenteredintoapowersupplyagreement,asamended(PSA),withMarketingCompany,wherebyGenco agreedtosellandMarketingCompanyagreedtopurchase allofthecapacityandenergyavailablefromGencos generationfleet.MarketingCompanyenteredintoasimilar PSAwithAERG.UnderthePSAs,revenuesallocated betweenGencoandAERGarebasedonreimbursable expensesandgeneration.EachPSAwillcontinuethrough December31,2022,andfromyeartoyearthereafterunless eitherpartytotherespectivePSAelectstoterminatethe PSAbyprovidingtheotherpartywithnolessthansix monthsadvancewrittennotice.InDecember2005,EEIenteredintoaPSAwithMarketingCompany,wherebyEEIagreedtoselland MarketingCompanyagreedtopurchaseallofthecapacity andenergyavailablefromEEIsgenerationfleet.Theprice thatMarketingCompanypaysforcapacityissetannually baseduponprevailingmarketprices.MarketingCompany paysspotmarketpricesfortheassociatedenergy.In addition,EEIwillattimespurchaseenergyfromMarketing Companytofulfillobligationstoanonaffiliatedparty.This PSAwillcontinuethroughMay31,2016,unlesseither partyelectstoterminatethePSAbyprovidingtheother partywithnolessthanfouryearsadvancewrittennoticeor fivedayswrittennoticeintheeventofadefault,unlessthe defaultiscuredwithin30businessdays.
150 CapacitySupplyAgreementsAmerenIllinois,asanelectricload-servingentity,mustacquirecapacitysufficienttomeetitsobligationsto
customers.AmerenIllinoisusedRFPprocessesinearly2008,pursuanttothe2007IllinoisElectricSettlementAgreement, tocontractforthenecessarycapacityrequirementsforthe periodfromJune1,2008,throughMay31,2009.Both MarketingCompanyandAmerenMissouriwereamongthe winningsuppliersinthecapacityRFPs.MarketingCompany contractedtosupplyaportionofAmerenIllinoiscapacity requirementsfor$6million.Inaddition,AmerenMissouri contractedtosupplyaportionoftheAmerenIllinois capacityfor$1million.In2009,AmerenIllinoisusedaRFPprocess,administeredbytheIPA,tocontractcapacityfortheperiod fromJune1,2009,throughMay31,2012.BothMarketing CompanyandAmerenMissouriwereamongthewinning suppliersinthecapacityRFPprocess.InApril2009, MarketingCompanycontractedtosupplyaportionof AmerenIllinoiscapacityrequirementstoAmerenIllinoisfor
$4million,$9million,and$8millionforthe12months endingMay31,2010,2011,and2012,respectively.InApril 2009,AmerenMissouricontractedtosupplyaportionof AmerenIllinoiscapacityrequirementstoAmerenIllinoisfor
$2million,$2million,and$1millionforthe12months endingMay31,2010,2011,and2012,respectively.In2010,AmerenIllinoisusedaRFPprocess,administeredbytheIPA,tocontractcapacityfortheperiod fromJune1,2010,throughMay31,2013.BothMarketing CompanyandAmerenMissouriwereamongthewinning suppliersinthecapacityRFPprocess.InApril2010, MarketingCompanycontractedtosupplyaportionof AmerenIllinoiscapacityrequirementstoAmerenIllinoisfor
$1million,$2million,and$3millionforthe12months endingMay31,2011,2012,and2013,respectively.InApril 2010,AmerenMissouricontractedtosupplyaportionof AmerenIllinoiscapacityrequirementstoAmerenIllinoisfor lessthan$1millionfortheperiodfromJune1,2010, throughMay31,2013.EnergySwapsandEnergyProductsAmerenIllinois,asanelectricload-servingentity,mustacquireenergysufficienttomeetitsobligationsto
customers.Aspartofthe2007IllinoisElectricSettlementAgreement,AmerenIllinoisenteredintofinancialcontracts withMarketingCompany(forthebenefitofGencoand AERG)tolockinenergypricesfor400to1,000megawatts annuallyofitsround-the-clockpowerrequirementsduring theperiodJune1,2008,toDecember31,2012,atthen-relevantmarketprices.Thesefinancialcontractsdonot includecapacity,arenotload-followingproducts,anddo notinvolvethephysicaldeliveryofenergy.Thesefinancial contractsarederivativeinstruments.Theyareaccountedfor ascashflowhedgesbyMarketingCompanyandasderivativessubjecttoregulatorydeferralbyAmerenIllinois.Consequently,AmerenIllinoisandMarketingCompany recordthefairvalueofthecontractsontheirrespective balancesheetsandthechangestothefairvaluein regulatoryassetsorliabilitiesforAmerenIllinoisandOCIat MarketingCompany.SeeNote7-DerivativeFinancial Instrumentsforadditionalinformationonthesederivatives.
Belowaretheremainingcontractedvolumesandpricesper megawatthourasofDecember31,2011:PeriodVolumePriceper MegawatthourJanuary1,2012-December31,2012
.....1,000MW$53.08AmerenIllinoisusedRFPprocessesinearly2008,pursuanttothe2007IllinoisElectricSettlementAgreement, tocontractforthenecessaryfinancialenergyswaps requiredfortheperiodfromJune1,2008,throughMay31, 2009.MarketingCompanywasawinningsupplierin AmerenIllinoisenergyswapRFPprocess.Marketing Companyenteredintofinancialinstrumentsthatfixedthe pricethatAmerenIllinoispaidforabout2million megawatthoursatapproximately$60permegawatthour.In2009,AmerenIllinoisusedaRFPprocess,administeredbytheIPA,toprocurefinancialenergyswaps fromJune1,2009,throughMay31,2011.Marketing Companywasawinningsupplierinthefinancialenergy swapRFPprocess.InMay2009,MarketingCompany enteredintofinancialinstrumentsthatfixedthepricethat AmerenIllinoispaidforapproximately80,000 megawatthoursatapproximately$48permegawatthour duringthe12monthsendingMay31,2010,andfor approximately89,000megawatthoursatapproximately$48 permegawatthourduringthe12monthsendingMay31, 2011.In2010,AmerenIllinoisusedaRFPprocess,administeredbytheIPA,toprocurefinancialenergyswaps fortheperiodfromJune1,2010,throughMay31,2013.
MarketingCompanywasawinningsupplierinthefinancial energyswapRFPprocess.InMay2010,Marketing Companyenteredintofinancialinstrumentsthatfixedthe pricethatAmerenIllinoiswillpayforapproximately 924,000megawatthoursatapproximately$33per megawatthourduringthe12monthsendingMay31,2011, andforapproximately296,000megawatthoursat approximately$40permegawatthourduringthe12months endingMay31,2012.EnergyProductsIn2011,AmerenIllinoisusedaRFPprocessadministeredbytheIPAtoprocureenergyproductsthat willsettlephysicallyfromJune1,2011,throughMay31, 2014.MarketingCompanyandAmerenMissouriwere winningsuppliersinAmerenIllinoisenergyproductRFP process.InMay2011,MarketingCompanyandAmeren Illinoisenteredintoenergyproductagreementsbywhich MarketingCompanywillsellandAmerenIllinoiswill purchaseapproximately1,747,200megawatthoursat approximately$37permegawatthourduringthe12months 151 endingMay31,2012,approximately1,840,800megawatthoursatapproximately$42permegawatthour duringthe12monthsendingMay31,2013,and approximately650,000megawatthoursatapproximately
$42permegawatthourduringthe12monthsending May31,2014.InMay2011,AmerenMissouriandAmeren Illinoisenteredintoenergyproductagreementsbywhich AmerenMissouriwillsellandAmerenIllinoiswillpurchase approximately16,800megawatthoursatapproximately$37 permegawatthourduringthe12monthsendingMay31, 2012,approximately40,800megawatthoursat approximately$29permegawatthourduringthe12months endingMay31,2013,andapproximately40,800 megawatthoursatapproximately$28permegawatthour duringthe12monthsendingMay31,2014.The2012and 2013energyproductagreementsbetweenAmerenMissouri andAmerenIllinoisareforoff-peakhoursonly.InFebruary2012,aratestabilityprocurementforenergyproductsthatwillsettlephysicallywasadministered bytheIPAfortheJune2013throughMay2017periodto meetcertainrequirementsforpurchasedpowerrelatedto theIEIMA.MarketingCompanywasawinningsupplierin AmerenIllinoisenergyproductprocurementprocess.In February2012,MarketingCompanyandAmerenIllinois enteredintoenergyproductagreementspursuanttowhich MarketingCompanywillsellandAmerenIllinoiswill purchaseapproximately3,942,000megawatthoursat approximately$30permegawatthourduringthe12months endingMay31,2014,approximately3,504,000 megawatthoursatapproximately$32permegawatthour duringthe12monthsendingMay31,2015,and approximately1,317,600megawatthoursatapproximately
$34permegawatthourduringthe12monthsending May31,2016.Theenergyproductagreementswerebased onaround-the-clockprices.InterconnectionandTransmissionAgreementsAmerenMissouriandAmerenIllinoisarepartiestoaninterconnectionagreementfortheuseoftheirrespective transmissionlinesandotherfacilitiesforthedistributionof power.Theseagreementshavenocontractualexpiration date,butmaybeterminatedbyeitherpartywiththreeyears
notice.JointOwnershipAgreementATXIandAmerenIllinoishaveajointownershipagreementtoconstruct,own,operate,andmaintaincertain electrictransmissionassetsinIllinois.Underthetermsof thisagreement,AmerenIllinoisandATXIareresponsible fortheirapplicableshareofallcostsrelatedtothe construction,operation,andmaintenanceofelectric transmissionsystems.Amerenistheprimarybeneficiaryof ATXI,andthereforeconsolidatesATXI.Currently,thereare noconstructionprojectsorjointownershipofexisting assetsunderthisagreement.InJanuary2011,ATXIrepaidadvancesfortheconstructionoftransmissionassetstoAmerenIllinoisinthe amountof$52million,including$3millionofaccruedinterest.InMarch2011,AmerenIllinoisandATXIsignedanagreementtotransfer,atcost,allofATXIsconstruction workinprogressassetsrelatedtotheconstructionofa transmissionlinetoAmerenIllinoisfor$20million.InApril 2011,AmerenIllinoispaidATXIfortheseassets.SupportServicesAgreementsAmerenServicesprovidessupportservicestoitsaffiliates.Thecostsofsupportservices,includingwages, employeebenefits,professionalservices,andother expenses,arebasedon,orareanallocationof,actualcosts incurred.AFSprovidedsupportservicestoitsaffiliates throughDecember31,2010.EffectiveJanuary1,2011,the servicespreviouslyperformedbyAFSareperformedwithin theAmerenMissouri,AmerenIllinoisandMerchant Generationbusinesssegments.Inaddition,Ameren Missouri,AmerenIllinoisandGencoprovideaffiliates, primarilyAmerenServices,withaccesstotheirfacilitiesfor administrativepurposes.Thecostoftherentandfacility servicesarebasedon,orareanallocationof,actualcosts
incurred.GasSalesandTransportationAgreementUnderagastransportationagreement,GencoacquiresgastransportationservicefromAmerenMissouri.This agreementexpiresinFebruary2016.MoneyPoolsSeeNote5-Long-termDebtandEquityFinancingsfordiscussionofaffiliateborrowingarrangements.CollateralPostingsUnderthetermsofthe2011,2010,and2009IllinoispowerprocurementagreementsenteredintothroughaRFP processadministeredbytheIPA,suppliersmustpost collateralundercertainmarketconditionstoprotectAmeren Illinoisintheeventofnonperformance.Thecollateral postingsareunilateral,meaningthatonlythesuppliers wouldberequiredtopostcollateral.Therefore,Ameren Missouri,asawinningsupplierofcapacityandenergy products,andMarketingCompany,asawinningsupplierof capacity,financialenergyswaps,andenergyproducts,may berequiredtopostcollateral.AsofDecember31,2011, and2010,therewerenocollateralpostingsrequiredof AmerenMissouriorMarketingCompanyrelatedtothe 2011,2010,and2009Illinoispowerprocurement
agreements.IntercompanyTransfersOnOctober1,2010,AmerenIllinoisdistributedAERGscommonstocktoAmereninconnectionwiththe AmerenIllinoisMerger.Amerensubsequentlycontributed 152 theAERGcommonstocktoAER.ThedistributionofAERGcommonstockwasaccountedforasatransactionbetween entitiesundercommoncontrol;therefore,AmerenIllinoistransferredAERGtoAmerenbasedonAERGscarryingvalue.SeeNote16-CorporateReorganizationand DiscontinuedOperationsforadditionalinformation.ThefollowingtablepresentstheimpactonAmerenMissouri,AmerenIllinoisandGenco,ofrelatedpartytransactionsfortheyearsendedDecember31,2011,2010,and2009.Itisbasedprimarilyontheagreementsdiscussedaboveandthemoney poolarrangementsdiscussedinNote4-Short-TermDebtandLiquidity.AgreementIncomeStatementLineItem Ameren Missouri AmerenIllinoisGencoGencoandEEIpowersupplyOperatingRevenues2011$(a)$(a)$1,006agreementswithMarketingCompany2010(a)(a)1,0592009(a)(a)1,071AmerenMissouripowersupplyagreementsOperatingRevenues20112(a)(a)withAmerenIllinois20102(a)(a)20093(a)(a)AmerenMissouriandGencogasOperatingRevenues20111(a)(a)transportationagreement20101(a)(a)20091(a)(a)GencogassalestoMedinaValleyOperatingRevenues2011(a)(a)32010(a)(a)2 2009(a)(a)1GencogassalestodistributioncompaniesOperatingRevenues2011(a)(a)-2010(a)(a)1 2009(a)(a)2AmerenMissouri,AmerenIllinoisOperatingRevenues2011161-andGencorentandfacilityservices2010161120091811TotalOperatingRevenues2011$19$1$1,00920101911,063 20092211,075AmerenMissouriandGencogasFuel2011$(a)$(a)$1transportationagreement2010(a)(a)12009(a)(a)1AmerenIllinoispowersupplyagreementsPurchasedPower2011$(a)$232$(a)withMarketingCompany2010(a)233(a)2009(a)400(a)AmerenIllinoispowersupplyPurchasedPower2011(a)2(a)agreementswithAmerenMissouri2010(a)2(a)2009(a)3(a)AmerenIllinoisancillaryservicesagreementPurchasedPower2011(a)-(a)withMarketingCompany2010(a)-(a)2009(a)(b)(a)EEIpowersupplyagreementwithPurchasedPower2011(a)(a)36MarketingCompany2010(a)(a)112009(a)(a)42TotalPurchasedPower2011$(a)$234$372010(a)23512 2009(a)40343 153 AgreementIncomeStatementLineItem Ameren Missouri AmerenIllinoisGencoGaspurchasesfromGencoGasPurchasedforResale2011$(a)$-$(a)2010(a)1(a) 2009(a)2(a)AmerenServicessupportservicesOtherOperationsand2011$114$90$19agreementMaintenance201012810223200913110127AFSsupportservicesagreementOtherOperationsand2011(a)(a)(a)Maintenance20107(b)32009763Insurancepremiums (c)OtherOperationsand2011(b)(a)-Maintenance20101(a)-20092(a)1TotalOtherOperationsand2011$114$90$19MaintenanceExpenses201013610226200914010731Moneypoolborrowings(advances)Interest(Charges)2011$-$-$(b)Income2010-(b)(b)2009-(b)(1)(a)Notapplicable.(b)Amountlessthan$1million.
(c)RepresentsinsurancepremiumspaidtoEnergyRiskAssuranceCompany,anaffiliateforreplacementpower,propertydamage,andterrorism coverage.NOTE15-COMMITMENTSANDCONTINGENCIESWeareinvolvedinlegal,taxandregulatoryproceedingsbeforevariouscourts,regulatorycommissions,andgovernmentalagencieswithrespecttomattersthatariseintheordinarycourseofbusiness,someofwhichinvolvesubstantial amountsofmoney.Webelievethatthefinaldispositionoftheseproceedings,exceptasotherwisedisclosedinthesenotesto ourfinancialstatements,willnothaveamaterialadverseeffectonourresultsofoperations,financialposition,orliquidity.SeealsoNote1-SummaryofSignificantAccountingPolicies,Note2-RateandRegulatoryMatters,Note10-CallawayEnergyCenterandNote14-RelatedPartyTransactionsinthisreport.CallawayEnergyCenterThefollowingtablepresentsinsurancecoverageatAmerenMissourisCallawayenergycenteratDecember31,2011.ThepropertycoverageandthenuclearliabilitycoveragemustberenewedonApril1andJanuary1,respectively,ofeachyear.TypeandSourceofCoverageMaximumCoveragesMaximumAssessmentsforSingleIncidentsPublicliabilityandnuclearworkerliability:AmericanNuclearInsurers..................$375$-Poolparticipation
.........................
12,219 (a)118 (b)$12,594 (c)$118Propertydamage:NuclearElectricInsuranceLtd...............$
2,750 (d)$23Replacementpower:NuclearElectricInsuranceLtd...............$490 (e)$9EnergyRiskAssuranceCompany............$64 (f)$-(a)Providedthroughmandatoryparticipationinanindustrywideretrospectivepremiumassessmentprogram.(b)RetrospectivepremiumunderPrice-Anderson.Thisissubjecttoretrospectiveassessmentwithrespecttoacoveredlossinexcessof$375millionintheeventofanincidentatanylicensedU.S.commercialreactor,payableat$17.5millionperyear.(c)LimitofliabilityforeachincidentunderthePrice-AndersonliabilityprovisionsoftheAtomicEnergyActof1954,asamended.Acompanycouldbeassessedupto$118millionperincidentforeachlicensedreactoritoperateswithamaximumof$17.5millionperincidenttobepaidina calendaryearforeachreactor.Thislimitissubjecttochangetoaccountfortheeffectsofinflationandchangesinthenumberoflicensed
reactors.(d)Providesfor$500millioninpropertydamageanddecontamination,excesspropertyinsurance,andprematuredecommissioningcoverageupto$2.25billionforlossesinexcessofthe$500millionprimarycoverage.(e)Providesthereplacementpowercostinsuranceintheeventofaprolongedaccidentaloutageatournuclearenergycenter.Weeklyindemnityupto$4.5millionfor52weeks,whichcommencesafterthefirsteightweeksofanoutage,plusupto$3.6millionperweekforaminimumof 71weeksthereafterforatotalnotexceedingthepolicylimitof$490million.
154 (f)Providesthereplacementpowercostinsuranceintheeventofaprolongedaccidentaloutageatournuclearenergycenter.Thecoveragecommencesafterthefirst52weeksofinsurancecoveragefromNuclearElectricInsuranceLtd.andisforaweeklyindemnityof$900,000for 71weeksinexcessofthe$3.6millionperweeksetforthabove.EnergyRiskAssuranceCompanyisanaffiliateandhasreinsuredthiscoverage withthird-partyinsurancecompanies.SeeNote14-RelatedPartyTransactionsformoreinformationonthisaffiliatetransaction.ThePrice-AndersonActisafederallawthatlimitstheliabilityforclaimsfromanincidentinvolvinganylicensedUnitedStatescommercialnuclearpowerfacility.Thelimitisbasedonthenumberoflicensedreactors.Thelimitofliabilityandthe maximumpotentialannualpaymentsareadjustedatleasteveryfiveyearsforinflationtoreflectchangesintheConsumer PriceIndex.Thefive-yearinflationaryadjustmentasprescribedbythemostrecentPrice-AndersonActrenewalwaseffective October29,2008.Ownersofanuclearreactorcoverthisexposurethroughacombinationofprivateinsuranceandmandatory participationinafinancialprotectionpool,asestablishedbyPrice-Anderson.LossesresultingfromterroristattacksarecoveredunderNuclearElectricInsuranceLtd.spolicies,subjecttoanindustrywideaggregatepolicylimitof$3.24billionwithina12-monthperiodforcoverageforsuchterroristacts.IflossesfromanuclearincidentattheCallawayenergycenterexceedthelimitsof,orarenotcoveredby,insurance,orifcoverageisunavailable,AmerenMissouriisatriskforanyuninsuredlosses.Ifaseriousnuclearincidentweretooccur,it couldhaveamaterialadverseeffectonAmerensandAmerenMissourisresultsofoperations,financialposition,orliquidity.
LeasesWeleasevariousfacilities,officeequipment,plantequipment,andrailcarsunderoperatingleases.ThefollowingtablepresentsourleaseobligationsatDecember31,2011:Total20122013201420152016After5Years Ameren: (a)Capitalleasepayments (b).................................$621$33$32$32$33$33$458Lessamountrepresentinginterest..........................3122827272727176Presentvalueofminimumcapitalleasepayments..............$309$5$5$5$6$6$282Operatingleases (c).......................................3073832262625160Totalleaseobligations...................................$616$43$37$31$32$31$442AmerenMissouri:Capitalleasepayments (b).................................$621$33$32$32$33$33$458Lessamountrepresentinginterest..........................3122827272727176Presentvalueofminimumcapitalleasepayments..............$309$5$5$5$6$6$282Operatingleases (c).......................................134131212121273Totalleaseobligations...................................$443$18$17$17$18$18$355AmerenIllinois:Operatingleases (c).......................................$7$1$1$1$1$1$2 Genco:Operatingleases (c).......................................$131$11$11$11$10$11$77(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.(b)SeePropertiesunderPartI,Item2,andNote3-PropertyandPlant,Netofthisreportforadditionalinformation.
(c)Amountsrelatedtocertainrealestateleasesandrailroadlicenseshaveindefinitepaymentperiods.Amerens$2millionannualobligationfortheseitemsisincludedinthe2012through2016columns.TheamountsfortheindefinitepaymentsarenotincludedintheAfter5Years columnbecausethatperiodisindefinite.Thefollowingtablepresentstotalrentalexpense,includedinoperatingexpenses,fortheyearsendedDecember31,2011,2010and2009:201120102009 Ameren (a).........................................................................$47$52$50AmerenMissouri
...................................................................
292930AmerenIllinois
.....................................................................
171919 Genco............................................................................
121315(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.
155 OtherObligationsTosupplyaportionofthefuelrequirementsofourgeneratingplants,wehaveenteredintovariouslong-termcommitmentsfortheprocurementofcoal,naturalgas,nuclearfuel,andmethanegas.Wealsohaveenteredintovariouslong-termcommitmentsforpurchasedpowerandnaturalgasfordistribution.Thetablebelowpresentsourestimatedfuel, purchasedpower,andothercommitmentsatDecember31,2011.AmerensandAmerenMissouriscoalcommitments includemultiyearagreementstoprocureultra-low-sulfurcoalandrelatedtransportationfromthePowderRiverBasinin Wyoming.AmerensandAmerenMissourispurchasedpowerobligationsincludea102-MWpowerpurchaseagreementwith awindfarmoperatorthatexpiresin2024.AmerensandAmerenIllinoispurchasedpowerobligationsincludetheAmeren IllinoispowerpurchaseagreementsenteredintoaspartoftheIPA-administeredpowerprocurementprocess.Includedinthe Othercolumnareminimumpurchasecommitmentsundercontractsforequipment,designandconstruction,meterreading services,andanAmerentaxcreditobligationatDecember31,2011.Amerenstaxcreditobligationisa$17millionnote payableissuedforaninvestmentinacommercialrealestatedevelopmentpartnershiptoacquiretaxcredits.Thisnotepayable wasnettedagainsttherelatedinvestmentinOtherassetsonAmerensbalancesheetatDecember31,2011,asAmerenhas alegallyenforceablerighttooffsetunderauthoritativeaccountingguidance.
Coal Natural Gas Nuclear Fuel Purchased Power MethaneGasOtherTotal Ameren: (a)2012...................$1,120$398$36$196$1$221$1,972 2013...................79229537309380 1,516 2014...................69222096125375 1,211 2015...................6871169051352999 2016...................6743910052362930 Thereafter...............96813429874694246 2,486 Total...................$4,933$1,202$657$1,479$107$736$9,114AmerenMissouri:
2012...................$623$63$36$19$1$78$820 2013...................605483719350762 2014...................625369619347826 2015...................614199019328773 2016...................644710019338811 Thereafter...............9213029815594144 1,642 Total...................$4,032$203$657$250$107$385$5,634AmerenIllinois:
2012...................$-$324$-$177$-$24$525 2013...................-243-290-22555 2014...................-180-106-22308 2015...................-94-32-24150 2016...................-31-33-2488 Thereafter...............-105-591-102798 Total...................$-$977$-$1,229$-$218$2,424 Genco: 2012...................$355$9$-$-$-$98$462 2013...................1084---5117 2014...................403---548 2015...................452----47 2016...................-------
Thereafter...............-------
Total...................$548$18$-$-$-$108$674(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.Also,aspartofthe2007IllinoisElectricSettlementAgreement,AmerenIllinoisenteredintofinancialcontracts withMarketingCompanytolockinenergypricesfor400to 1,000megawattsannuallyoftheirround-the-clockpower requirementsfrom2008to2012.Thesecommitmentsare notreflectedintheabovetable.SeeNote7-Derivative FinancialInstrumentsandNote14-RelatedParty Transactionsforadditionalinformation.InFebruary2012,aratestabilityprocurementforenergyproductsandrenewableenergycreditswasadministeredbytheIPAfortheJune2013throughMay2017periodtomeetcertainrequirementsforpurchasedpowerrelatedtotheIEIMA.AmerenIllinoiscontractedtopurchaseapproximately13millionmegawatthoursof energyproductsatanaveragepriceofapproximately$31permegawatthour.AmerenIllinoisiscurrentlyreviewing 156 theresultsoftherenewableenergycreditsprocurement proceeding.AmerenIllinoishasenteredintoanagreementtopurchaseapproximately15.5billioncubicfeetofsynthetic naturalgasannuallyovera10-yearperiodbeginningin 2016foritsnaturalgascustomers.Theagreementis contingentonthecounterpartyreachingcertainmilestones duringtheprojectdevelopmentandtheconstructionofthe plantthatwillproducethesyntheticnaturalgas.
Constructionhasnotbegunontheplant;therefore,Ameren Illinoisobligationsarenotyetcertainatthistime.The agreementwasenteredintopursuanttoanIllinoislaw, whichbecameeffectiveAugust2,2011,andprovidesthat allcontractcostsforsyntheticnaturalgasincurredby AmerenIllinoisarereasonableandprudentandrecoverable throughthePGAandarenotsubjecttoreviewor disallowancebytheICC.EnvironmentalMattersWearesubjecttovariousenvironmentallawsandregulationsenforcedbyfederal,state,andlocalauthorities.
Fromthebeginningphasesofsitinganddevelopmenttothe ongoingoperationofexistingornewelectricgenerating, transmissionanddistributionfacilitiesandnaturalgas storage,transmissionanddistributionfacilities,our activitiesinvolvecompliancewithdiverseenvironmental lawsandregulations.Theselawsandregulationsaddress emissions,impactstoair,landandwater,noise,protected naturalandculturalresources(suchaswetlands, endangeredspeciesandotherprotectedwildlife,and archeologicalandhistoricalresources),andchemicaland wastehandling.Complexandlengthyprocessesare requiredtoobtainapprovals,permits,orlicensesfornew, existingormodifiedfacilities.Additionally,theuseand handlingofvariouschemicalsorhazardousmaterials (includingwastes)requiresreleasepreventionplansand emergencyresponseprocedures.Inadditiontoexistinglawsandregulations,includingtheIllinoisMPSthatappliestoourenergycentersin Illinois,theEPAisdevelopingnumerousnewenvironmental regulationsthatwillhaveasignificantimpactontheelectric utilityindustry.Theseregulationscouldbeparticularly burdensomeforcertaincompanies,includingAmeren, AmerenMissouriandGenco,thatoperatecoal-firedenergy centers.Significantnewrulesproposedorpromulgated sincethebeginningof2010includetheregulationof greenhousegasemissions;revisednationalambientair qualitystandardsforSO 2andNO 2emissions;theCSAPR,whichrequiresfurtherreductionsofSO 2andNO x emissionsfrompowerplants;aregulationgoverningmanagementof CCRandcoalashimpoundments;theMATS,which requiresreductionofemissionsofmercury,toxicmetals, andacidgasesfrompowerplants;revisedNSPSfor particulatematter,SO 2,andNO xemissionsfromnewsources;andnewregulationsundertheCleanWaterAct thatcouldrequiresignificantcapitalexpendituressuchas newwaterintakestructuresorcoolingtowersatourenergy centers.TheEPAalsoplanstoproposeanadditionalrule,applicabletonewandexistingelectricgeneratingunits,governingNSPSandemissionguidelinesforgreenhouse gasemissions.Thesenewregulationsmaybelitigated,so thetimingoftheirimplementationisuncertain,as evidencedbythestayoftheCSAPRbytheUnitedStates CourtofAppealsfortheDistrictofColumbiaon December30,2011.Althoughmanydetailsofthesefuture regulationsareunknown,thecombinedeffectsofthenew andproposedenvironmentalregulationsmayresultin significantcapitalexpendituresand/orincreasedoperating costsoverthenextfivetotenyearsforAmeren,Ameren MissouriandGenco.Actionsrequiredtoensurethatour facilitiesandoperationsareincompliancewith environmentallawsandregulationscouldbeprohibitively expensive.Iftheyare,theseregulationscouldrequireusto closeortosignificantlyaltertheoperationofourenergy centers,whichcouldhaveanadverseeffectonourresults ofoperations,financialposition,andliquidity,includingthe impairmentofplantassets.Failuretocomplywith environmentallawsandregulationsmightalsoresultinthe impositionoffines,penalties,andinjunctivemeasures.Theestimatesinthetablebelowcontainalloftheknowncapitalcoststocomplywithexistingenvironmental regulationsandourassessmentofthepotentialimpactsof theEPAsproposedregulationforCCR,therecently finalizedMATS,thestayedCSAPRascurrentlydesigned, andtherevisednationalambientairqualitystandardsfor
SO 2andNO xemissionsasofDecember31,2011.TheestimatesinthetablebelowassumethatCCRwillcontinue toberegardedasnonhazardous.Theestimatesinthetable belowdonotincludetheimpactsofnewregulations proposedbytheEPAundertheCleanWaterActinMarch 2011regardingcoolingwaterintakestructuresasour evaluationofthoseimpactsisongoing.Theestimates showninthetablebelowcouldchangesignificantly dependinguponavarietyoffactorsincluding:
additionalfederalorstaterequirements; regulationofgreenhousegasemissions; newnationalambientairqualitystandardsorchangestoexistingstandardsforozone,fineparticulates,SO 2 ,andNO x emissions; additionalrulesgoverningairpollutanttransport; finalizedregulationsundertheCleanWaterAct; CCRbeingclassifiedashazardous; whethertheCSAPRisimplementedandwhetheranymodificationsaremadetoitsexistingrequirements; newtechnology; expectedpowerprices; variationsincostsofmaterialorlabor;and alternativecompliancestrategiesorinvestment decisions.20122013-20162017-2021Total AMO (a).....$55$325-$400$845-$1,030$1,225-$1,485 Genco.....150100-125245-295495-570 AERG......520-2580-100105-130 Ameren....$210$445-$550$1,170-$1,425$1,825-$2,185(a)AmerenMissourisexpendituresareexpectedtoberecoverablefromratepayers.
157 ThedecisiontomakepollutioncontrolequipmentinvestmentsatourMerchantGenerationbusinessdepends onwhethertheexpectedfuturemarketpriceforpower reflectstheincreasedcostforenvironmentalcompliance.Inearly2012,therehasbeenadeclineinthemarketpriceforwholesalepowerbecauseoffactorssuchasdeclining naturalgaspricesandthestayoftheCSAPR.Asaresultof thisdeclineinthemarketpriceforpower,aswellas uncertainenvironmentalregulations,Gencoisdecelerating theconstructionoftwoscrubbersatofitsNewtonenergy center.Thesescrubberswereoriginallyexpectedtobe installedinlate2013andspring2014.Theultimate installationofthesescrubbers,nowestimatedtooccur between2017and2021inthetableabove,hasbeen postponeduntilsuchtimeastheincrementalinvestment necessaryforcompletionisjustifiedbyvisiblemarket conditions.However,Gencowillcontinuetoincurcapital costsrelatedtotheconstructionofthesescrubbers.The tableaboveincludesGencosestimatedcostsof approximately$150millionin2012andapproximately
$20millionannually,excludingcapitalizedinterest,from 2013through2016fortheconstructionofthetwo scrubbers.InadditiontoGencosreductioninestimated capitalexpenditures,AERGisdeferringprecipitator upgradesatitsE.D.Edwardsenergycenterbeyond2016.Thefollowingsectionsdescribethemoresignificantenvironmentalrulesthataffectouroperations.CleanAirActBothfederalandstatelawsrequiresignificantreductionsinSO 2andNO xemissionsthatresultfromburningfossilfuels.InMarch2005,theEPAissued regulationswithrespecttoSO 2andNO xemissions(theCAIR).TheCAIRrequiredgeneratingfacilitiesin28states, includingMissouriandIllinois,andtheDistrictofColumbia toparticipateincap-and-tradeprogramstoreduceannual
SO 2emissions,annualNO xemissions,andozoneseason NO x emissions.InDecember2008,theUnitedStatesCourtofAppealsfortheDistrictofColumbiaremandedtheCAIRtotheEPA forfurtheractiontoremedytherulesflaws,butallowedthe CAIRscap-and-tradeprogramstoremaineffectiveuntil theyarereplacedbytheEPA.InJuly2011,theEPAissued theCSAPRastheCAIRreplacement.TheCSAPRwasto becomeeffectiveonJanuary1,2012,forSO 2andannual NO xreductionsandonMay1,2012,forozoneseasonNO xreductions.IntheCSAPR,theEPAdevelopedfederal implementationplansforeachstatecoveredbythisrule; however,eachimpactedstatecandevelopitsown implementationrulestartingasearlyas2013.TheCSAPR establishesemissionallowancebudgetsforeachofthe statessubjecttotheregulation,includingMissouriand Illinois.WiththeCSAPR,theEPAabandonedCAIRs regionalapproachtocuttingemissionsandinsteadseta pollutionbudgetforeachoftheimpactedstatesbasedon theEPAsanalysisofeachupwindstatescontributiontoair qualityindownwindstates.ForMissouriandIllinois, emissionreductionswererequiredintwophasesbeginningin2012,withfurtherreductionsin2014.WiththeCSAPR,theEPAadoptedacap-and-tradeapproachthatallows intrastateandlimitedinterstatetradingofemission allowanceswithothersourceswithinthesameprogram, thatis,intheSO 2program,intheannualNO x,orinozoneseasonNO xprogram.MultiplelegalchallengeswerefiledrequestingtohaveCSAPRpartiallyorentirelyvacatedand tostaytheimplementationoftheCSAPRwhilethecourt considersthechallenges.OnDecember30,2011,the UnitedStatesCourtofAppealsfortheDistrictofColumbia issuedastayoftheCSAPR.Thestaydoesnotinvalidatethe rule,butonlydelaysitsimplementationuntilafinalcourt rulingisissued.TheUnitedStatesCourtofAppealsforthe DistrictofColumbiahasexpediteditsconsiderationofthe regulationandwillhearargumentsonthevalidityofCSAPR inApril2012.Theultimateoutcomeofthechallengestothe regulationisuncertain.ThecourtcouldupholdCSAPRor remanditbacktotheEPAforpartialorentirerevision.Until theCSAPRappealprocessisconcluded,theEPAwill continuetoadministertheCAIR.OnDecember21,2011,theEPAissuedthefinalMATSundertheCleanAirAct,whichrequireemissionreductions formercuryandotherhazardousairpollutants,suchas acidgases,toxicmetals,andparticulatematterbysetting emissionlimitsequaltotheaverageemissionsofthebest performing12%ofexistingcoalandoil-firedelectric generatingunits.Also,therulerequiresreductionsin hydrogenchlorideemissions,whichwerenotregulated previously,anditmayrequirecontinuousmonitoring systemsthatarenotcurrentlyinplace.TheMATSdonot requireaspecificcontroltechnologytoachievethe emissionreductions.TheMATSwillapplytoeachunitata coal-firedpowerplant;however,emissioncompliancecan beaveragedfortheentirepowerplant.Complianceis requiredbyApril2015or,withacase-by-caseextension,by April2016.Separately,inJanuaryandJune2010,theEPAfinalizednewambientairqualitystandardsforSO 2andNO 2.Italsoannouncedplansforfurtherreductionsintheannual nationalambientairqualitystandardsforozoneandfine particulates.ThestateofIllinoisandthestateofMissouri willberequiredtodevelopseparateattainmentplansto complywiththenewambientairqualitystandards.Ameren, AmerenMissouriandGencocontinuetoassesstheimpacts ofthesenewstandards.InSeptember2011,theEPA withdrewitsdraftannualnationalambientairquality standardforozoneandannouncedthatitwasimplementing the2008nationalambientairqualitystandardforozone.
TheEPAisrequiredtorevisitthisstandardagainin2013.AmerenMissouriscurrentenvironmentalcomplianceplanforairemissionsfromitsenergycentersincludes burningultra-low-sulfurcoalandinstallingnewor optimizingexistingpollutioncontrolequipment.InJuly 2011,AmerenMissouricontractedtoprocuresignificantly highervolumesoflower-sulfur-contentcoalthanAmeren Missourisenergycentershavehistoricallyburned,which willallowAmerenMissouritoeliminateorpostponecapital expendituresforpollutioncontrolequipmentwhilestill 158 achievingrequiredemissionslevels.In2010,AmerenMissouricompletedtheinstallationoftwoscrubbersatits SiouxenergycentertoreduceSO 2emissions.Currently,AmerenMissouriscomplianceplanassumesthe installationoftwoscrubberswithinitscoal-firedfleet duringthenext10yearsandprecipitatorupgradesat multipleenergycenters.However,AmerenMissouriis currentlyevaluatingitsoperationsandoptionstodetermine howtocomplywiththeadditionalemissionreductions requirementsin2014setforthintheCSAPR,ifultimately enacted,theMATS,andotherrecentlyfinalizedorproposed EPAregulations.ExistingIllinoisstateregulationsalreadyrequiredAmerenandGencotoreducetheiremissionsofmercury undertheMPS.AmerensandGencosreviewoftheMATS indicatesthatthescopeofthefederalstandardsisbroader thantheMPS,asnoexemptionexistsforsmallercoal-fired plants.Additionally,theMATSaremorestringentthanthe MPSbecausecompliancewiththeMATSismeasuredona quarterlybasisand,insomecases,athirty-dayrollingbasis andnotannually,asallowedunderstaterequirements.At theendof2011,GencoceasedoperationsofitsMeredosia andHutsonvilleenergycenters.Theclosureoftheseenergy centerswasprimarilyduetotheexpectedcostofcomplying withCSAPRandMATS.SeeNote17-Goodwill, ImpairmentandOtherChargesforadditionalinformation.GencoandAERGexpecttoinstalladditional,oroptimizeexisting,pollutioncontrolequipment,ormodifyoperationsto meetnewandincrementalemissionreductionrequirements undertheMPS,theMATS,ortheCSAPRastheybecome effective.UndertheMPS,asamended,Illinoisgeneratorsare requiredtoreducemercury,SO 2,andNO xemissionsby2015.TocomplywiththeMPSandotherairemissionslawsand regulations,GencoandAERGareinstallingequipment designedtoreducetheiremissionsofmercury,NO x,andSO 2.GencoandAERGhaveinstalledatotalofthreescrubbersat twoenergycenters.Twoadditionalscrubbersarebeing constructedatGencosNewtonenergycenter.Asdiscussed above,thetimingoftheinstallationofthesescrubbersaswell asprecipitatorupgradesatAERGsE.D.Edwardsenergycenter havebeendelayed.TheclosureofGencosMeredosiaand HutsonvilleenergycenterswillallowtheMerchantGeneration segmentadditionalflexibilityinthemethodstoachieve compliancewithenvironmentalstandards.Merchant GenerationandGencowillcontinuetoreviewandadjusttheir complianceplansinlightofevolvingoutlooksforpowerand capacityprices,deliveredfuelcosts,environmentstandards andcompliancetechnologies,amongotherfactors.ThecompletionofAmerens,AmerenMissourisandGencosreviewofrecentlyfinalizedenvironmental regulationsandcompliancemeasurescouldresultin significantincreasesincapitalexpendituresandoperating costs.Thecompliancecostscouldbeprohibitiveatsomeof ourenergycentersastheexpectedreturnfromthese investments,atcurrentmarketpricesforenergyand capacity,mightnotjustifytherequiredcapitalexpenditures ortheircontinuedoperation,whichcouldresultinthe impairmentoflong-livedassets.EmissionAllowancesTheCleanAirActcreatedmarketablecommoditiescalledallowancesundertheacidrainprogram,theNO xbudgettradingprogram,theCAIR,andtheCSAPR.With theCSAPR,theEPAadoptedacap-and-tradeapproachthat allowsintrastateandlimitedinterstatetradingofemission allowanceswithothersourceswithinthesameprogram, thatis,eithertheSO 2,annualNO x,orozoneseasonNO xprograms.Asnotedabove,onDecember30,2011,the UnitedStatesCourtofAppealsfortheDistrictofColumbia issuedastayoftheCSAPR.UntiltheCSAPRappeal processisconcluded,theEPAwillcontinuetoadminister theCAIRincludingitsallowanceprogram.SeeNote1-SummaryofSignificantAccountingPoliciesfortheSO 2 and NO xemissionallowancebookvaluesthatwereclassifiedasintangibleassetsasofDecember31,2011and2010,and Note17-Goodwill,ImpairmentandOtherChargesfor informationregardingtheemissionallowanceimpairments recordedduring2011and2010.EnvironmentalregulationsincludingtheCAIRandtheCSAPR,thetimingoftheinstallationofpollutioncontrol equipment,fuelmix,andthelevelofoperations,willhavea significantimpactonthenumberofallowancesrequiredfor ongoingoperations.TheCAIRusestheacidrainprograms allowancesforSO 2emissionsandcreatedannualandozoneseasonNO xallowances.TheCSAPR,however,willnotrelyupontheacidrainprogram,theNO xbudgettradingprogram,orCAIRallowancesforitsallowanceallocation program.Instead,theEPAissuedanewtypeofemissions allowanceforeachprogramundertheCSAPR.Anyunused
SO 2allowances,annualNO xallowances,andozoneseason NO xallowancesissuedunderCAIRcannotbeusedforcompliancewithCSAPR.Ameren,AmerenMissouriand GencoexpecttohaveadequateCAIRallowancesfor2012 toavoidneedingtomakeexternalpurchases.ShouldtheCSAPRbecomeeffectiveasissued,Ameren,AmerenMissouriandGencoarestudyingtheir complianceoptionstoidentifyadditionalopportunitiesthat mayexistforcomplianceinaneconomicalfashion.
Ameren,AmerenMissouriandGencomayberequiredto purchaseemissionallowances,ifavailable,toinstallnewor optimizeexistingpollutioncontrolequipment,tolimit generation,ortakeotheractionstoachievecompliancewith theCSAPRinfuturephase-inyears.GlobalClimateChangeStateandfederalauthorities,includingtheUnitedStatesCongress,haveconsideredinitiativestolimit greenhousegasemissionsandtoaddressglobalclimate change.Potentialimpactsfromanyclimatechange legislationorregulationcouldvary,dependingupon proposedCO 2emissionlimits,thetimingofimplementationofthoselimits,themethodofdistributinganyallowances, thedegreetowhichoffsetsareallowedandavailable,and provisionsforcost-containmentmeasures,suchasa safetyvalveprovisionthatprovidesamaximumpricefor emissionallowances.Asaresultofourdiversefuel portfolio,ouremissionsofgreenhousegasesvaryamong 159 ourenergycenters,butcoal-firedpowerplantsaresignificantsourcesofCO 2.Theenactmentofaclimatechangelawcouldresultinasignificantriseinhousehold costsandratesforelectricitycouldrisesignificantly.The burdencouldfallparticularlyhardonelectricityconsumers andupontheeconomyintheMidwestbecauseofthe regionsrelianceonelectricitygeneratedbycoal-fired powerplants.NaturalgasemitsabouthalfasmuchCO 2 ascoalwhenburnedtoproduceelectricity.Therefore,climate changeregulationcouldcausetheconversionofcoal-fired powerplantstonaturalgas,ortheconstructionofnew naturalgasplantstoreplacecoal-firedpowerplants.Asa result,economywideshiftstonaturalgasasafuelsource forelectricitygenerationalsocouldaffectthecostof heatingforourutilitycustomersandmanyindustrial processesthatusenaturalgas.InDecember2009,theEPAissueditsendangermentfindingundertheCleanAirActwhichstatedthat greenhousegasemissions,includingCO 2,endangerhumanhealthandwelfareandthatemissionsofgreenhousegases frommotorvehiclescontributetothatendangerment.In March2010,theEPAissuedadeterminationthat greenhousegasemissionsfromstationarysources,suchas powerplants,wouldbesubjecttoregulationunderthe CleanAirActeffectivethebeginningof2011.Asaresultof theseactions,wearerequiredtoconsidertheemissionsof greenhousegasesinanyairpermitapplication.Recognizingthedifficultiespresentedbyregulatingatoncevirtuallyallemittersofgreenhousegases,theEPA finalizedinMay2010regulations,knownastheTailoring Rule,thatestablishednewhigherthresholdsforregulating greenhousegasemissionsfromstationarysources,suchas powerplants.TheTailoringRulebecameeffectivein January2011.Therulerequiresanysourcethatalreadyhas anoperatingpermittohavegreenhouse-gas-specific provisionsaddedtoitspermitsuponrenewal.Currently,all Amerenenergycentershaveoperatingpermitsthat,when renewed,maybemodifiedtoaddressgreenhousegas emissions.TheTailoringRulealsoprovidesthatifprojects performedatmajorsourcesresultinanincreasein emissionsofgreenhousegasesofatleast75,000tonsper year,measuredinCO 2equivalents,suchprojectscouldtriggerpermittingrequirementsundertheNSRprograms andtheapplicationofbestavailablecontroltechnology,if any,tocontrolgreenhousegasemissions.Newmajor sourcesarealsorequiredtoobtainsuchapermitandto installthebestavailablecontroltechnologyiftheir greenhousegasemissionsexceedtheapplicableemissions threshold.Separately,inDecember2010,theEPA announcedasettlementagreementunderwhichitwould proposeNSPSforgreenhousegasemissionsatnewand existingfossilfuel-firedpowerplantsbyJuly26,2011and issueafinalstandardbyMay2012.TheEPAhasnotyet proposedaruleandhasnotspecifiedanewestimateof whenitwillissuethatstandard.Itisuncertainwhether reductionstogreenhousegasemissionswouldberequired atAmerens,AmerenMissourisorGencosenergycenters asaresultofanyoftheEPAsnewandfuturerules.Legal challengestotheEPAsgreenhousegasruleshavebeenfiled.AnyfederalclimatechangelegislationthatisenactedmaypreempttheEPAsregulationofgreenhousegas emissions,includingtheTailoringRule,particularlyasit relatestopowerplantgreenhousegasemissions.The extenttowhichtheTailoringRulecouldhaveamaterial impactonourenergycentersdependsuponhowstate agenciesapplytheEPAsguidelinesastowhatconstitutes thebestavailablecontroltechnologyforgreenhousegas emissionsfrompowerplantsandwhetherphysicalchanges orchangesinoperationssubjecttotheruleoccuratour energycenters.AlthoughtheEPAhasstateditsintentionto regulategreenhousegasemissionsfromstationary sources,suchaspowerplants,congressionalactioncould blockordelaythateffort.Futurefederalandstatelegislationorregulationsthatmandatelimitsontheemissionofgreenhousegaseswould likelyresultinsignificantincreasesincapitalexpenditures andoperatingcosts,which,inturn,couldleadtoincreased liquidityneedsandhigherfinancingcosts.Moreover,tothe extentAmerenMissourirequestsrecoveryofthesecosts throughrates,itsregulatorsmightdelayordenytimely recoveryofthesecosts.Excessivecoststocomplywith futurelegislationorregulationsmightforceAmeren, AmerenMissouriandGencoaswellasothersimilarly situatedelectricpowergeneratorstoclosesomecoal-fired facilitiesearlierthanplanned,whichcouldleadtopossible impairmentofassetsandreducedrevenues.Asaresult, mandatorylimitscouldhaveamaterialadverseimpacton Amerens,AmerenMissouris,andGencosresultsof operations,financialposition,andliquidity.Recentfederalcourtdecisionshaveconsideredtheapplicationofcommonlawcausesofaction,suchas nuisance,toaddressdamagesresultingfromglobalclimate change.InJune2011,theUnitedStatesSupremeCourtin StateofConnecticutv.AmericanElectricPower rejectedstateeffortstoimposeliabilityforCO 2andgreenhousegasesemissionsunderfederalcommonlaw.Thatruling, however,didnotaddresswhetherprivatecitizenscould pursuecausesofactionbasedonstatecommonlaw.In June2011,acasecalledComerv.MurphyOil(Comer)was filedintheUnitedStatesDistrictCourtfortheSouthern DistrictofMississippi.Inthislitigation,aMississippi propertyownersuedseveralindustrialcompanies, includingAmerenMissouriandGenco,allegingthatCO 2emissionscreatedtheatmosphericconditionsthat intensifiedHurricaneKatrina.Althoughweareunableto predicttheoutcomeoftheComerlitigationonourresultsof operations,financialposition,andliquidity,Amerenbelieves thatithasmeritoriousdefenses.Numerousproceduraland substantivechallengesareexpectedintheComerlitigation.Theimpactonusoffutureinitiativesrelatedtogreenhousegasemissionsandglobalclimatechangeis unknown.Compliancecostscouldincreaseasfuturefederal legislative,federalregulatory,andstate-sponsored initiativestocontrolgreenhousegasescontinueto progress,makingitmorelikelythatsomeformof greenhousegasemissionscontrolwilleventuallybe required.Sincetheseinitiativescontinuetoevolve,the 160 impactonourcoal-firedenergycentersandourcustomerscostsisunknown,butanyimpactwouldprobablybe negative.Ourcostsofcomplyingwithanymandatedfederal orstategreenhousegasprogramcouldhaveamaterial impactonourfutureresultsofoperations,financial position,andliquidity.NSRandCleanAirLitigationTheEPAisengagedinanenforcementinitiativetodeterminewhethercoal-firedpowerplantsfailedtocomply withtherequirementsoftheNSRandNSPSprovisions undertheCleanAirActwhentheplantsimplemented modifications.TheEPAsinquiriesfocusonwhether projectsperformedatpowerplantsshouldhavetriggered variouspermittingrequirementsandtheinstallationof pollutioncontrolequipment.InApril2005,GencoreceivedarequestfromtheEPAforinformationpursuanttoSection114(a)oftheCleanAir Act.Therequestsoughtdetailedoperatingandmaintenance historydatawithrespecttoGencosCoffeen,Hutsonville, Meredosia,Newton,andJoppaenergycentersandAERGs E.D.EdwardsandDuckCreekenergycenters.In2006,the EPAissuedasecondSection114(a)requesttoGenco regardingprojectsattheNewtonenergycenter.Allofthese facilitiesarecoal-firedenergycenters.InSeptember2008, theEPAissuedathirdSection114(a)requestregarding projectsatallofAmerenscoal-firedenergycentersin Illinois.Wecompletedourresponsetotheinformation requests,butweareunabletopredicttheoutcomeofthis
matter.FollowingtheissuanceofaNoticeofViolation,inJanuary2011,theDepartmentofJusticeonbehalfofthe EPAfiledacomplaintagainstAmerenMissouriinthe UnitedStatesDistrictCourtfortheEasternDistrictof Missouri.TheEPAscomplaintallegesthatinperforming projectsatitsRushIslandcoal-firedenergycenter,Ameren MissouriviolatedprovisionsoftheCleanAirActand Missourilaw.InJanuary2012,theUnitedStatesDistrict Courtgranted,inpart,AmerenMissourismotionto dismissvariousaspectsoftheEPAspenaltyclaims.The EPAsclaimsforinjunctiverelief,includingtorequirethe installationofpollutioncontrolequipment,remain.At present,thecomplaintdoesnotincludeAmerenMissouris othercoal-firedenergycenters,buttheEPAhasissued NoticesofViolationunderitsNSRenforcementinitiative againstthecompanysLabadie,Meramec,andSiouxcoal-firedenergycenters.Litigationofthismattercouldtake manyyearstoresolve.AmerenMissouribelievesits defensestotheallegationsdescribedinthecomplaintas wellastheNoticesofViolationaremeritorious.Ameren Missouriwilldefenditselfvigorously.However,therecan benoassurancesthatitwillbesuccessfulinitsefforts.Ultimateresolutionofthesematterscouldhaveamaterialadverseimpactonthefutureresultsofoperations, financialposition,andliquidityofAmeren,AmerenMissouri andGenco.Aresolutioncouldresultinincreasedcapital expendituresfortheinstallationofpollutioncontrolequipment,increasedoperationsandmaintenanceexpenses,andpenalties.Weareunabletopredictthe ultimateresolutionofthesemattersorthecoststhatmight beincurred.However,AmerenMissourihasconcludedthat, whilealossmaybereasonablypossible,thelikelihoodof lossisnotprobable.Therefore,noreservehasbeen
established.CleanWaterActInMarch2011,theEPAannouncedaproposedruleapplicabletocoolingwaterintakestructuresatexisting powerplantsthathavetheabilitytowithdrawmorethan 2milliongallonsofwaterperdayfromabodyofwaterand useatleast25percentofthatwaterexclusivelyfor cooling.Undertheproposedrule,affectedfacilitieswould berequiredeithertomeetmortalitylimitsforaquaticlife impingedontheplantsintakescreensortoreduceintake velocityto0.5feetpersecond.Theproposedrulealso requiresplantstomeetsite-specificentrainmentstandards ortoreducethecoolingwaterintakeflowcommensurate withtheintakeflowofaclosed-cyclecoolingsystem.The finalruleisscheduledtobeissuedinJuly2012,with complianceexpectedwithineightyearsthereafter.Allcoal-fired,nuclear,andcombinedcycleenergycentersat Ameren,AmerenMissouriandGencowithcoolingwater systemsaresubjecttothisproposedrule.Theproposed ruledidnotmandatecoolingtowersatexistingfacilities,as othertechnologyoptionspotentiallycouldmeetthesite-specificstandards.Ameren,AmerenMissouriandGenco arecurrentlyevaluatingtheproposedrule,andtheir assessmentoftheproposedrulesimpactsisongoing.
Therefore,wecannotpredictatthistimethecapitalor operatingcostsassociatedwithcompliance.Theproposed rulecouldhaveanadverseeffectonourresultsof operations,financialposition,andliquidityifits implementationrequirestheinstallationofcoolingtowersat ourelectricgeneratingstations.InSeptember2009,theEPAannounceditsplantorevisetheeffluentguidelinesapplicabletosteamelectric generatingunitsundertheCleanWaterAct.Effluent guidelinesarenationalstandardsforwastewaterdischarges tosurfacewaterthatarebasedontheeffectivenessof availablecontroltechnology.TheEPAisengagedin informationcollectionandanalysisactivitiesinsupportof thisrulemaking.Ithasindicatedthatitexpectstoissuea proposedruleinJuly2012andtofinalizetherulein2014.
Weareunableatthistimetopredicttheimpactofthis
development.
RemediationWeareinvolvedinanumberofremediationactionstocleanuphazardouswastesitesasrequiredbyfederaland statelaw.Suchstatutesrequirethatresponsibleparties fundremediationactionsregardlessoftheirdegreeoffault, thelegalityoforiginaldisposal,ortheownershipofa disposalsite.AmerenMissouriandAmerenIllinoishave eachbeenidentifiedbythefederalorstategovernmentsas apotentiallyresponsibleparty(PRP)atseveral 161 contaminatedsites.Severalofthesesitesinvolvefacilitiesthatweretransferredbyourrate-regulatedutilityoperations inIllinoistoGencoinMay2000andtoAERGinOctober 2003.Aspartofeachtransfer,AmerenIllinoiscontractually agreedtoindemnifyGencoandAERGforremediationcosts associatedwithpreexistingenvironmentalcontaminationat thetransferredsites.AsofDecember31,2011,AmerenandAmerenIllinoisownedorwereotherwiseresponsiblefor44formerMGP sitesinIllinois.Theseareinvariousstagesofinvestigation, evaluation,andremediation.Basedoncurrentestimated plans,AmerenandAmerenIllinoiscouldsubstantially concluderemediationeffortsatmostofthesesitesby2015.
TheICCpermitsAmerenIllinoistorecoverremediationand litigationcostsassociatedwithitsformerMGPsitesfrom itselectricandnaturalgasutilitycustomersthrough environmentaladjustmentrateriders.Toberecoverable, suchcostsmustbeprudentlyandproperlyincurred.Costs aresubjecttoannualreviewbytheICC.AsofDecember31,2011,AmerenandAmerenMissouriownorareotherwiseresponsiblefor10MGP sitesinMissouriandonesiteinIowa.AmerenMissouri doesnotcurrentlyhavearateridermechanismthatpermits recoveryofremediationcostsassociatedwithMGPsites fromutilitycustomers.AmerenMissouridoesnothaveany retailutilityoperationsinIowathatwouldprovideasource ofrecoveryoftheseremediationcosts.Thefollowingtablepresents,asofDecember31,2011,theestimatedprobableobligationtoremediatetheseMGP
sites.Estimate Recorded Liability (a)LowHigh Ameren....................$107$183$107AmerenMissouri.............343AmerenIllinois...............104179104(a)Recordedliabilityrepresentstheestimatedminimumprobableobligations,asnootheramountwithintherangeprovideda betterestimate.AmerenIllinoisisresponsibleforthecleanupofaformercoalashlandfillinCoffeen,Illinois.Asof December31,2011,AmerenIllinoisestimatedthat obligationat$0.5millionto$6million.AmerenIllinois recordedaliabilityof$0.5milliontorepresentitsestimated minimumobligationforthissite,asnootheramountwithin therangewasabetterestimate.AmerenIllinoisisalso responsibleforthecleanupofalandfill,underground storagetanks,andawatertreatmentplantinIllinois.Asof December31,2011,AmerenIllinoisrecordedaliabilityof
$0.8milliontorepresentitsbestestimateoftheobligation forthesesites.AmerenMissourihasresponsibilityfortheinvestigationandpotentialcleanupoftwowastesitesin Missouriasaresultoffederalagencymandates.Oneofthe cleanupsitesisaformercoaltardistillerylocatedinSt.
Louis,Missouri.In2008,theEPAissuedanadministrativeordertoAmerenMissouripertainingtothisdistilleryoperatedbyKoppersCompanyoritspredecessorand successorcompanies.AmerenMissouriisthecurrent ownerofthesite,butAmerenMissourididnotconductany ofthemanufacturingoperationsinvolvingcoaltarorits byproducts.AmerenMissouri,alongwithtwootherPRPs, iscurrentlyperformingasiteinvestigation.Asof December31,2011,AmerenMissouriestimatedits obligationat$2millionto$5million.AmerenMissourihas aliabilityof$2millionrecordedtorepresentitsestimated minimumobligation,asnootheramountwithintherange wasabetterestimate.AmerenMissourisotheractive federalagency-mandatedcleanupsiteinMissouriisasite inCapeGirardeau.AmerenMissouriwasacustomerofan electricalequipmentrepairanddisposalcompanythat previouslyoperatedafacilityatthissite.Atrustwas establishedintheearly1990sbyseveralbusinessesand governmentalagenciestofundthecleanupofthissite, whichwascompletedin2005.AmerenMissourianticipates thistrustfundwillbesufficienttocompletetheremaining adjacentoff-sitecleanupandthereforehasnorecorded liabilityatDecember31,2011,relatedtothissite.AmerenMissourialsohasafederalagencymandatetocompleteasiteinvestigationforasiteinIllinois.In2000, theEPAnotifiedAmerenMissouriandnumerousother companies,includingSolutia,thatformerlandfillsand lagoonsinSauget,Illinois,maycontainsoiland groundwatercontamination.Thesesitesareknownas SaugetArea2.Fromabout1926until1976,Ameren MissourioperatedanenergycenteradjacenttoSaugetArea 2.AmerenMissouricurrentlyownsaparcelofpropertythat wasonceusedasalandfill.Underthetermsofan AdministrativeOrderonConsent,AmerenMissourihas joinedwithotherPRPstoevaluatetheextentofpotential contaminationwithrespecttoSaugetArea2.TheSaugetArea2investigationsoverseenbytheEPAhavebeencompleted.Theresultshavebeensubmittedto theEPA,andarecordofdecisionisexpectedin2012.Once theEPAhasselectedaremedy,ifany,itwouldbegin negotiationswithvariousPRPsregardingimplementation.
Overthelastseveralyears,numerousotherpartieshave joinedthePRPgroup.Inaddition,PharmaciaCorporation andMonsantoCompanyhaveagreedtoassumethe liabilitiesrelatedtoSolutiasformerchemicalwastelandfill intheSaugetArea2.AsofDecember31,2011,Ameren Missouriestimateditsobligationat$0.3millionto
$10million.AmerenMissourihasaliabilityof$0.3million recordedtorepresentitsestimatedminimumobligation,as nootheramountwithintherangewasabetterestimate.InDecember2004,AERGsubmittedaplantotheIllinoisEPAtoaddressgroundwaterandsurfacewater issuesassociatedwiththerecyclepond,ashponds,and reservoirattheDuckCreekenergycenter.In2010,AERG closedtherecyclepondsystem.Remediationworkonthe recyclepondwascompletedinthefirstquarterof2011, andthereforenoliabilityexistsasofDecember31,2011.Ouroperationsorthoseofourpredecessorcompaniesinvolvetheuseof,disposalof,andinappropriate 162 circumstances,thecleanupofsubstancesregulatedunderenvironmentalprotectionlaws.Weareunabletodetermine whethersuchpracticeswillresultinfutureenvironmental commitmentsoraffectourresultsofoperations,financial position,orliquidity.AshManagementTherehasbeenactivityatbothstateandfederallevelsregardingadditionalregulationofashpondfacilitiesand CCR.InMay2010,theEPAannouncedproposednew regulationsregardingtheregulatoryframeworkforthe managementanddisposalofCCR,whichcouldaffectfuture disposalandhandlingcostsatourenergycenters.Those proposedregulationsincludetwooptionsformanaging CCRsundereithersolidorhazardouswasteregulations,but eitheralternativewouldallowforsomecontinuedbeneficial uses,suchasrecyclingofCCRwithoutclassifyingitas waste.Aspartofitsproposal,theEPAisconsidering alternativeregulatoryapproachesthatrequirecoal-fired powerplantseithertoclosesurfaceimpoundments,such asashponds,ortoretrofitsuchfacilitieswithliners.
Existingimpoundmentsandlandfillsusedforthedisposal ofCCRwouldbesubjecttogroundwatermonitoring requirementsandrequirementsrelatedtoclosureand postclosurecareundertheproposedregulations.
Additionally,inJanuary2010,EPAannounceditsintentto developregulationsestablishingfinancialresponsibility requirementsfortheelectricgenerationindustry,among otherindustries,anditspecificallydiscussedCCRasa reasonfordevelopingthenewrequirements.Ameren, AmerenMissouriandGencoarecurrentlyevaluatingallof theproposedregulationstodeterminewhethercurrent managementofCCR,includingbeneficialreuse,andtheuse oftheashpondsshouldbealtered.Ameren,Ameren MissouriandGencoalsoareevaluatingthepotentialcosts associatedwithcompliancewiththeproposedregulationof CCRimpoundmentsandlandfills,whichcouldbematerial, ifsuchregulationsareadopted.Inaddition,theIllinoisEPArequestedthatAmeren,AmerenMissouriandGencoestablishgroundwater monitoringplansfortheirashimpoundmentsinIllinois.
AmerenandtheIllinoisEPAhaveestablishedaframeworkfor closureofashpondsinIllinois,includingtheashpondsat Venice,Hutsonville,andDuckCreek,whensuchfacilitiesare ultimatelytakenoutofservice.Ameren,AmerenMissouriand GencohaverecordedAROs,basedoncurrentlaws,forthe estimatedcostsoftheretirementoftheirashponds.Pumped-storageHydroelectricFacilityBreachInDecember2005,therewasabreachoftheupperreservoiratAmerenMissourisTaumSaukpumped-storage hydroelectricenergycenter.Thisresultedinsignificant floodinginthelocalarea,whichdamagedastatepark.
AmerenMissourisettledwithFERCandthestateof MissouriallissuesassociatedwiththeDecember2005 TaumSaukincident.TherebuiltTaumSaukenergycenter becamefullyoperationalinApril2010.AmerenMissouriincludedcertaincapitalizedcostsassociatedwithenhancements,orcoststhatwouldhave beenincurredabsentthebreach,attherebuiltTaumSauk energycenternotrecoveredfrompropertyinsurersinits 2010electricratecasefiling.However,intheJuly2011rate order,theMoPSCdisallowedallofthesecapitalizedcosts associatedwiththerebuildingoftheTaumSaukenergy center.Asaresultoftheorder,AmerenandAmerenMissouri eachrecordedapretaxchargetoearningsin2011of
$89milliontoreflectthisdisallowance.SeeNote2-Rate andRegulatoryMattersforadditionalinformationaboutthe appealoftheMoPSCsJuly2011electricrateorder.AmerenMissourihadpropertyandliabilityinsurancecoveragefortheTaumSaukincident,subjecttocertain limitsanddeductibles.Insurancedidnotcoversomelost electricmarginsorpenaltiespaidtoFERC.AmerenMissouri believesthatthetotalcostforcleanup,damageand liabilities,excludingcoststorebuildtheupperreservoir,is
$209million,whichistheamountAmerenMissourihad paidasofDecember31,2011.AsofDecember31,2011, AmerenMissourihadrecordedexpensesof$37million, primarilyinprioryears(2011-$1million,2010-
$1million,2009-$2million),foritemsnotcoveredby insurance.AmerenMissourirecordeda$172million receivableforamountsrecoverablefrominsurance companiesunderliabilitycoverage.AsofDecember31, 2011,AmerenMissourihadreceived$104millionfrom insurancecompaniesforliabilityclaims,whichreducedthe insurancereceivablebalancesubjecttoliabilitycoverageto
$68million.InJune2010,AmerenMissourisuedaninsurancecompanythatwasprovidingAmerenMissouriwithliability coverageonthedateoftheTaumSaukincident.Inthe litigation,filedintheUnitedStatesDistrictCourtforthe EasternDistrictofMissouri,AmerenMissouriclaimedthe insurancecompanybreacheditsdutytoindemnifyAmeren Missouriforthelossesexperiencedfromtheincident.In January2011,thecourtruledthatthepartiesmustfirst pursuealternativedisputeresolutionunderthetermsof theircoverageagreement.InFebruary2011,Ameren MissourifiledanappealoftheJanuaryrulingwiththe UnitedStatesCourtofAppealsfortheEighthCircuit, seekingtheabilitytopursueresolutionofthisdispute outsideofadisputeresolutionprocessunderthetermsof itscoverageagreement.UntilAmerensremainingliabilityinsuranceclaimsandtherelatedlitigationareresolved,weareunableto determinethetotalimpactthebreachcouldhaveon AmerensandAmerenMissourisresultsofoperations, financialposition,andliquiditybeyondthoseamounts alreadyrecognized.Asbestos-relatedLitigationAmeren,AmerenMissouri,AmerenIllinoisandEEIhavebeennamed,alongwithnumerousotherparties,ina numberoflawsuitsfiledbyplaintiffsclaimingvarying degreesofinjuryfromasbestosexposure.Mosthavebeen 163 filedintheCircuitCourtofMadisonCounty,Illinois.Thetotalnumberofdefendantsnamedineachcasevaries,with asmanyas272partiesnamedinsomependingcasesand asfewastwoinothers.Inthecasespendingasof December31,2011,theaveragenumberofpartieswas80.TheclaimsfiledagainstAmeren,AmerenMissouri,AmerenIllinoisandGencoallegeinjuryfromasbestos exposureduringtheplaintiffsactivitiesatourpresentor formerelectricgeneratingplants.FormerCIPSplantsare nowownedbyGenco,andformerCILCOplantsarenow ownedbyAERG.Asapartofthetransferofownershipof theCIPSandCILCOgeneratingplants,CIPSandCILCO, nowAmerenIllinois,contractuallyagreedtoindemnify GencoandAERG,forliabilitiesassociatedwithasbestos-relatedclaimsarisingfromactivitiespriortothetransfer.
Eachlawsuitseeksunspecifieddamagesthat,ifawardedat trial,typicallywouldbesharedamongthevarious
defendants.Thefollowingtablepresentsthependingasbestos-relatedlawsuitsfiledagainsttheAmerenCompaniesasof December31,2011:
Ameren Ameren Missouri AmerenIllinoisGencoTotal (a)45377(b)93(a)TotaldoesnotequalthesumofthesubsidiaryunitlawsuitsbecausesomeofthelawsuitsnamemultipleAmerenentitiesas
defendants.(b)AsofDecember31,2011,sixasbestos-relatedlawsuitswerependingagainstEEI.Thegeneralliabilityinsurancemaintainedby EEIprovidescoveragewithrespecttoliabilitiesarisingfrom asbestos-relatedclaims.AtDecember31,2011,Ameren,AmerenMissouri,AmerenIllinoisandGencohadliabilitiesof$18million,
$6million,$12million,and$-million,respectively, recordedtorepresenttheirbestestimateoftheirobligations relatedtoasbestosclaims.AmerenIllinoishasatariffridertorecoverthecostsofasbestos-relatedlitigationclaims,subjecttothefollowing terms:90%ofcashexpendituresinexcessoftheamount includedinbaseelectricratesaretoberecoveredfroma trustfundthatwasestablishedwhenAmerenacquiredIP.
AtDecember31,2011,thetrustfundbalancewas
$23million,includingaccumulatedinterest.Ifcash expendituresarelessthantheamountinbaserates, AmerenIllinoiswillcontribute90%ofthedifferencetothe fund.Oncethetrustfundisdepleted,90%ofallowedcash expendituresinexcessofbaserateswillberecovered throughchargesassessedtocustomersunderthetariff rider.FollowingtheAmerenIllinoisMerger,thisrideris applicableonlyforclaimsthatoccurredwithinIPs historicalserviceterritory.Similarly,theriderwillpermit recoveryonlyfromcustomerswithinIPshistoricalservice
territory.IllinoisSalesandUseTaxExemptionsandCredits InExelonCorporationv.DepartmentofRevenue,theIllinoisSupremeCourtdecidedin2009thatelectricityistangiblepersonalpropertyforpurposesoftheIllinoisincometaxinvestmentcredit.InMarch2010,theUnited StatesSupremeCourtrefusedtohearthecase,andthe decisionbecamefinal.Duringthesecondquarterof2010, GencoandAERGbeganclaimingIllinoissalesandusetax exemptionsandcreditsforpurchasetransactionsrelatedto theirgenerationoperations.Thebasisforthoseclaimsis thatthedeterminationintheExeloncasethatelectricityis tangiblepersonalpropertyappliestosalesandusetax manufacturingexemptionsandcredits.OnNovember2, 2011,EEIreceivedanoticeofproposedtaxliability, documentingthestateofIllinoispositionthatEEIdidnot qualifyforthemanufacturingexemptionitusedduring 2010.GencoischallengingtheStateofIllinoisposition.In December2011,EEIfiledarequestforreviewbythe InformalConferenceBoardoftheIllinoisDepartmentof Revenue.AmerenandGencodonotbelievethatitis probablethatthestateofIllinoiswillprevailandtherefore havenotrecordedachargetoearningsfortheloss contingency.Fromthesecondquarterof2010through December31,2011,AmerenandGencoclaimed manufacturingexemptionsandcreditsof$27millionand
$19million,respectively.NOTE16-CORPORATEREORGANIZATIONANDDISCONTINUEDOPERATIONSOnOctober1,2010,afterreceivingallnecessaryapprovals,Ameren,CIPS,CILCO,IP,AERGandAER completedatwo-stepcorporateinternalreorganization.The firststepofthereorganizationwastheAmerenIllinois Merger.Thesecondstepofthereorganizationinvolvedthe distributionofAERGstockfromAmerenIllinoistoAmeren (theAERGdistribution)andthesubsequentcontributionby AmerenoftheAERGstocktoAER.UpontheAmerenIllinoisMerger,thedebtandotherobligationsofCILCOandIPundertheirmortgage indentures,seniornoteindentures,andpollutioncontrol bondagreementsbecomedebtandobligationsofAmeren Illinois.ThepropertyownedbyCILCOandIPimmediately beforetheAmerenIllinoisMergerthatwassubjecttothe lienoftheirrespectivemortgageindenturesremained subjecttosuchlien,whichcontinuedtosecurethebonds outstandingundersuchmortgageindenturesubjecttothe releaseandotherprovisionsofsuchmortgageindenture.
TheseniorsecurednotesofIPandCILCOremained securedbythemortgagebondsheldbytheirrespective seniornotetrustee,subjecttothereleaseandother provisionsoftherespectiveseniornoteindenture.Thedebt andotherobligationsofCIPSremaineddebtand obligationsofAmerenIllinois.AmerenIllinoissecuredthe seniornotesissuedbyCIPSwiththebenefitofalienunder theIPmortgageindenture.AmerenIllinoishasalso encumberedsubstantiallyalloftherealestate,fixturesand equipmentownedbyCIPSimmediatelybeforetheAmeren IllinoisMergerwiththelienoftheIPmortgageindenture.AtthetimeoftheAmerenIllinoisMerger,thecommonstockofCILCOandIP,allwhollyownedbyAmeren,was canceledwithoutconsideration.Then,pursuanttothe 164 mergeragreement:(i)everytwosharesofeachseriesofIPpreferredstockoutstandingimmediatelypriortothe AmerenIllinoisMergerwereautomaticallyconvertedinto oneshareofanewlycreatedseriesofAmerenIllinois preferredstockhavingthesamepaymentandredemption termsastheexistingseriesofIPpreferredstock,exceptto theextentthatIPpreferredstockholdersexercisedtheir dissentersrightsinaccordancewithIllinoislaw;and (ii)eachoutstandingshareofCIPScommonandpreferred stockremainedoutstanding,excepttotheextentthatCIPS preferredstockholdersexercisedtheirdissentersrightsin accordancewithIllinoislaw.Stockholdersholding approximately8,337sharesand423sharesofCIPSandIP preferredstock,respectively,exercisedtheirdissenters
rights.InitsapplicationfortheFERCordersapprovingtheAmerenIllinoisMergerandtheAERGdistribution,Ameren committedtomaintainaminimum30%equitycapital structureatAmerenIllinoisaftertheAmerenIllinoisMerger andtheAERGdistribution.AmerenIllinoisdeterminedthattheoperatingresultsofAERGqualifiedfordiscontinuedoperationspresentation; therefore,AmerenIllinoissegregatedAERGsoperating resultsandpresentedthemseparatelyasdiscontinued operationsforallperiodspresentedpriortoOctober1,2010,inthisreport.ForAmerensfinancialstatements,AERGsresultsofoperationremainclassifiedascontinuing operations.Thefollowingtablesummarizestheoperating resultsofAmerenIllinoisformermerchantgeneration subsidiary,AERG,classifiedasdiscontinuedoperationsin AmerenIllinoisstatementsofincomefortheyearsended December31,2010,and2009:20102009Operatingrevenues.............$274$427Operatingexpenses.............201233Operatingincome..............73194Otherincome.................1-Interestcharges...............1416Incometaxes..................2064Incomefromdiscontinuedoperations,netoftax.........$40$114NOTE17-GOODWILL,IMPAIRMENTANDOTHERCHARGESThefollowingtablesummarizesthepretaxchargesrecognizedfortheyearsendedDecember31,2011,2010,and2009:
Goodwill Long-LivedAssetsandRelated Charges EmissionAllowancesTotal 2011: Ameren (a)..................................................$-$123$2$125AmerenMissouri
............................................-89-89 Genco....................................................-34135 2010: Ameren (a)..................................................42010168589 Genco....................................................656441170 2009: Ameren (a)..................................................-7-7 Genco....................................................-6-6(a)Includesamountsforregistrantandnonregistrantsubsidiaries.EachoftheabovechargeswasrecordedinthestatementofincomeasGoodwill,impairmentandother charges,withtheexceptionoftheAmerenMissouri statementofincomewhereitwasrecordedasLossfrom regulatorydisallowance.Eachofthechargesisdiscussed
below.ThegoodwillandotherassetimpairmentchargesdidnotresultinaviolationofanyAmerenorAmerensubsidiary debtcovenantsorcounterpartyagreements.Thecharges arenotexpectedtohaveamaterialimpactonfuture
operations.
GoodwillAmerenhasthreereportingunits,whichalsorepresentAmerensreportablesegments.TheAmerenreportingunits areAmerenMissouri,AmerenIllinois,andMerchantGeneration.Gencohasonereportingunit,MerchantGeneration.AmerenIllinoishasonereportingunit,Ameren Illinois.Amerensreportingunitshavebeendefinedand goodwillhasbeenevaluatedattheoperatingsegmentlevel inaccordancewithauthoritativeaccountingguidance.Our reportingunitsrepresentbusinessesforwhichdiscrete financialinformationisavailableandreviewedregularlyby
management.WeevaluategoodwillforimpairmentasofOctober31ofeachyear,ormorefrequentlyifeventsand circumstancesindicatethattheassetmightbeimpaired.In 2011,FASBamendeditsguidancetosimplifythetestingof goodwillforimpairment.Theamendedguidanceprovides anoptiontoperformaqualitativeassessmenttodetermine whetherfurtherimpairmenttestingisnecessary.Ifthe qualitativeevaluationyieldssupportthatitismorelikely thannotthatthefairvalueofareportingunitexceedsits 165 carryingvalue,thequantitativeimpairmenttestisnotrequired.AmerenandAmerenIllinoisadoptedthe qualitativegoodwillevaluationmodelforitsannualgoodwill impairmenttestconductedasofOctober31,2011.Based ontheresultsofAmerensandAmerenIllinoisqualitative assessment,AmerenandAmerenIllinoisbelieveitwas morelikelythannotthatthefairvalueofeachoftheir reportingunitsexceededtheircarryingvaluesasof October31,2011,indicatingnoimpairmentofAmerens andAmerenIllinoisgoodwill.Thefollowingfactors,not meanttobeall-inclusive,wereconsideredbyAmerenand AmerenIllinoiswhenassessingwhetheritwasmorelikely thannotthatthefairvalueoftheAmerenIllinoisreporting unitexceededitscarryingvaluefortheOctober31,2011
test:Macroeconomicconditions,includingthoseconditionswithinAmerenIllinoisserviceterritory; Pendingratecaseoutcomesandfutureratecase outcomes;Changesinlawsandpotentiallawchanges,suchasthe IEIMA;Observableindustrymarketmultiples;and Actualandforecastedfinancialperformance.During2010,Amerenrecordedanoncashimpairmentchargeof$420million,whichrepresentedallofthe goodwillassignedtoAmerensMerchantGenerationreportingunit.Gencorecordedanoncashimpairmentchargeof$65million,whichrepresentedallthegoodwill assignedtoGencosMerchantGenerationreportingunit.
Theimpairmentsrecordedin2010intheMerchant Generationsegmentwerecausedbyasustaineddeclinein marketpricesforelectricity,industrymarketmultiples becomingobservableatlowerlevelsthanpreviously estimated,andpotentiallymorestringentenvironmental regulationsbeingenacted.AmerenandAmerenIllinoiswillcontinuetomonitortheactualandforecastedoperatingresults,cashflows, marketcapitalization,andobservableindustrymarket multiplesoftheirreportingunitsforsignsofpossible declinesinestimatedfairvalueandpotentialgoodwill
impairment.Thefollowingtablesprovideareconciliationofthebeginningandendingcarryingamountsofgoodwillbyreportingunit,forAmeren,AmerenIllinoisandGencofortheyearsendedDecember31,2011and2010:
Ameren20112010 Ameren Illinois Ameren Illinois MerchantGenerationTotal (a)GrossgoodwillatJanuary1
................................................$411$411$420$831Accumulatedimpairmentlosses
.............................................
Goodwill,netofaccumulatedimpairmentlosses
................................$411$411$420$831Impairmentlossesduringyear
..............................................
--420420Goodwill,netofimpairmentlossesatDecember31
.............................$411$411$-$411(a)IncludesamountsforAmerenregistrantsandnonregistrantsubsidiaries.AmerenIllinois20112010 Ameren Illinois Ameren IllinoisGrossgoodwillatJanuary1
........................................................................$411$411Accumulatedimpairmentlosses
.....................................................................
--Goodwill,netofaccumulatedimpairmentlosses
........................................................$411$411Impairmentlossesduringtheyear
...................................................................
--Goodwill,netofimpairmentlossesatDecember31
.....................................................$411$411 Genco 2010MerchantGenerationGrossgoodwillatJanuary1............................................................................$65Accumulatedimpairmentlosses.........................................................................-Goodwill,netofaccumulatedimpairmentlosses............................................................$65Impairmentlossesduringtheyear.......................................................................65Goodwill,netofimpairmentlossesatDecember31..........................................................$-
166 Long-livedAssetsWeevaluatelong-livedassetsclassifiedasheldandusedforimpairmentwheneventsorchangesin circumstancesindicatethatthecarryingvalueofsuch assetsmaynotberecoverable.Whetherimpairmenthas occurredisdeterminedbycomparingtheestimated undiscountedcashflowsattributabletotheassetswiththe carryingvalueoftheassets.Ifthecarryingvalueexceeds theundiscountedcashflows,werecognizeanimpairment chargeequaltothecarryingvalueoftheassetsinexcessof estimatedfairvalue.During2011,theMoPSCissuedanelectricrateorderthatdisallowedtherecoveryofallcostsofenhancements, orcoststhatwouldhavebeenincurredabsentthebreach, relatedtotherebuildingoftheTaumSaukenergycenterin excessoftheamountrecoveredfrompropertyinsurance.
Consequently,AmerenandAmerenMissourieachreported apretaxchargetoearningsof$89million.SeeNote2-RateandRegulatoryMattersforadditionalinformation.Attheendof2011,GencoceasedoperationsofitsMeredosiaandHutsonvilleenergycenters.Theclosureof theseenergycentersresultedintheeliminationof90 positions.AmerenandGencoeachrecordedthefollowing pretaxchargestoearningsduring2011relatedtothe closureoftheseenergycenters:
a$26millionnoncashimpairment,representingtheremainingnetinvestmentinbothenergycenters; a$4millionnoncashimpairmentofmaterialsandsupplies;and a$4millionestimateforfuturecashseverancecosts,whichwillbesubstantiallypaidduringthefirstquarter of2012.TheclosureoftheseenergycentersisprimarilytheresultoftheexpectedcostofcomplyingwiththeCSAPR andtheMATS.Gencodeterminedthatenvironmental complianceoptionsforthesefourunitswereuneconomical.
Anotherfactordrivingtheclosureoftheseenergycenters wasalackofamultiyearcapacitymarketmanagedby MISO,withoutwhichGencowasnotpositionedtomakethe substantialinvestmentforenvironmentalcontrolsthat wouldberequiredtokeeptheseunitsinservice.Ameren andGencoexpecttoreceivecashtaxbenefitsof$22million and$33million,respectively,asaresultoftheclosureof theseenergycenters.PreviouslyrecordedAROsforash pondclosures,riverstructure,andasbestosremovalsat theseenergycenterswere$38million.AmerenandGenco expectcashexpendituresoverthenext10yearsalongwith associatedcashtaxbenefitsof$16million.During2010,AmerenandGencoevaluatedtheirlong-livedassetsandrecordednoncashpretaxassetimpairment chargesof$101millionand$64million,respectively,to reducethecarryingvalueoftheMeredosiaandMedina Valleyenergycenterstotheirestimatedfairvalueduring
2010.In2009,Gencorecordedassetimpairmentchargesof$6millionasaresultoftheterminationofaraillineextensionprojectataGencosubsidiaryandanadjustmentofthecarryingvalueofanofficebuildingownedbyGenco toitsestimatedfairvalueasofDecember31,2009.The chargerelatedtotheofficebuildingwasbasedonthenet proceedsfromitssalein2010.Inaddition,AERGrecorded anassetimpairmentchargeof$1milliontoadjustthe carryingvalueofitsIndianTrailsgenerationfacilitys estimatedfairvalueasofDecember31,2009.Thischarge wasbasedonthenetproceedsfromthesaleofthefacility inJanuary2010.IntangibleAssetsWeevaluateemissionallowancesforimpairmentifeventsorchangesincircumstancesindicatethattheywill notorcannotbeusedinoperations.Priorto2010,Ameren,AmerenMissouriandGencoexpectedtousetheirSO 2emissionallowancesforongoingoperations.InJuly2010,theEPAissuedtheproposed CSAPR,whichwouldrestricttheuseofexistingSO 2emissionallowances.Asaresult,Ameren,AmerenMissouri andGenconolongerexpectedalloftheirSO 2 emissionallowanceswouldbeusedinoperations.Therefore,during 2010,Ameren,AmerenMissouriandGencorecordedan impairmentchargetoreducethecarryingvalueoftheirSO 2emissionallowancestotheirestimatedfairvalue.Amerens andGencosnoncashpretaximpairmentchargewas
$68millionand$41million,respectively.AmerenMissouri recordeda$23millionimpairmentofitsSO 2 emissionallowancesbyreducingapreviouslyestablishedregulatory liabilityrelatingtoSO 2emissionallowances.Therefore,theAmerenMissouriSO 2emissionallowanceimpairmenthadnoimpactonearnings.ThefairvalueoftheSO 2 emissionallowanceswasbasedonobservableandunobservable
inputs.InJuly2011,theEPAissuedCSAPR,whichcreatednewallowancesforSO 2andNO xemissions,andrestrictedtheuseofpre-existingSO 2andNO xallowancestotheacidrainprogramandtotheNO xbudgettradingprogram,respectively.Asaresult,observablemarketpricesfor existingemissionallowancesdeclinedmaterially.
Consequently,during2011,AmerenandGencorecordeda noncashpretaximpairmentchargeof$2millionand
$1million,respectively.AmerenMissourirecordeda
$1millionimpairmentofitsSO 2emissionallowancesbyreducingapreviouslyestablishedregulatoryliabilityrelating totheSO 2emissionallowances,whichhadnoimpacton earnings.NOTE18-SEGMENTINFORMATIONAmerenhasthreereportablesegments:AmerenMissouri,AmerenIllinois,andMerchantGeneration.The AmerenMissourisegmentforAmerenandAmerenMissouriincludesalltheoperationsofAmerenMissourisbusinessasdescribedinNote1-SummaryofSignificantAccountingPolicies.TheAmerenIllinoissegmentforAmerenandAmerenIllinoisconsistsofalloftheoperationsofAmerenIllinoisasdescribedinNote1-SummaryofSignificantAccountingPolicies.TheMerchantGeneration 167 segmentforAmerenconsistsprimarilyoftheoperationsoractivitiesofGenco,includingEEI,AERG,MedinaValleyand MarketingCompany.ThecategorycalledOtherprimarilyincludesAmerenparentcompanyactivities,AmerenServices,andATXI.ThefollowingtablepresentsinformationaboutthereportedrevenuesandspecifieditemsreflectedinAmerensnetincomefortheyearsendedDecember31,2011,2010,and2009,andtotalassetsasofDecember31,2011,2010,and2009.
Ameren Ameren Missouri Ameren Illinois Regulated Segment MerchantGenerationOther IntersegmentEliminationsConsolidated 2011:Externalrevenues
..................................$3,358$2,774$1,394$5$-$7,531Intersegmentrevenues
.............................25132354(277)-Depreciationandamortization
........................40821514319-785Interestanddividendincome
.........................301-44(43)32Interestcharges
...................................20913610544(43)451Incometaxes(benefit)
..............................16112732(10)-310Netincome(loss)attributabletoAmerenCorporation (a)....28719345(6)-519Capitalexpenditures
................................550351153(24)(b)-1,030Totalassets
......................................12,7577,2133,8331,211(1,369)23,645 2010:Externalrevenues..................................$3,176$3,002$1,459$1$-$7,638Intersegmentrevenues.............................211223413(280)-Depreciationandamortization........................38221014627-765Interestanddividendincome.........................311125(25)33Interestcharges...................................21314313335(27)497Incometaxes(benefit)..............................1991376(17)-325Netincome(loss)attributabletoAmerenCorporation (a)....364208(409)(24)-139Capitalexpenditures................................62428110136-1,042Totalassets
......................................12,5047,4063,9341,354(1,687)23,511 2009:Externalrevenues..................................$2,847$2,957$1,322$9$-$7,135Intersegmentrevenues.............................272739019(463)-Depreciationandamortization........................35721612626-725Interestanddividendincome.........................296-33(38)30Interestcharges...................................22915311948(41)508Incometaxes(benefit)..............................12879151(26)-332Netincome(loss)attributabletoAmerenCorporation (a)....259127247(21)-612Capitalexpenditures................................88235240868-1,710Totalassets
......................................12,2197,1814,7511,814(2,263)23,702(a)Representsnetincome(loss)availabletocommonstockholders.(b)Includestheeliminationofintercompanytransfers.SELECTEDQUARTERLYINFORMATION(Unaudited)(Inmillions,exceptpershareamounts)QuarterEnded (a)Operating Revenues Operating IncomeNetIncome(Loss)AttributabletoAmerenCorporationEarnings(Loss)per CommonShare-Basicand Diluted Ameren March31,2011
...................$1,904$227$71$0.29March31,2010
...................1,9402981020.43June30,2011
....................1,7813161380.57June30,2010
....................1,7253311520.64September30,2011
...............2,2685502851.18September30,2010
...............2,26789(167)(0.70)December31,2011
................1,578148250.10December31,2010
................1,706198520.21(a)Thesumofquarterlyamounts,includingpershareamounts,maynotequalamountsreportedforyear-to-dateperiods.Thisisduetotheeffectsofroundingandchangesinthenumberofweighted-averagesharesoutstandingeachperiod.
168 QuarterEnded Operating Revenues Operating IncomeNetIncome (Loss)NetIncome(Loss)
AvailabletoCommon StockholderAmerenMissouri March31,2011
........................$772$77$22$21March31,2010........................682902827June30,2011
.........................8221769190June30,2010.........................761197115113September30,2011
....................1,115333191190September30,2010
....................1,060385224223December31,2011
.....................67423(14)(14)December31,2010.....................6943921QuarterEnded Operating Revenues Operating IncomeIncomefrom ContinuingOperationsNetIncomeNetIncome AvailabletoCommon StockholderAmerenIllinois March31,2011
............................$808$88$34$34$33March31,2010............................91198364847June30,2011
.............................62399383837June30,2010.............................647112485755September30,2011
........................745196989898September30,2010........................74618291110109December31,2011
.........................61175262625December31,2010.........................710106373737QuarterEnded Operating Revenues OperatingIncome(Loss)NetIncome(Loss)NetIncome(Loss)AttributabletoAmerenEnergyGeneratingCompany Genco March31,2011
............................$241$54$22$21March31,2010............................266622423June30,2011
.............................260371313June30,2010.............................275451413September30,2011
........................32710(4)(5)September30,2010........................335(99)(100)(101)December31,2011
.........................238381415December31,2010.........................250542626ITEM9.CHANGESINANDDISAGREEMENTSWITHACCOUNTANTSONACCOUNTINGANDFINANCIALDISCLOSURE.
None.ITEM9A.CONTROLSANDPROCEDURES.EachoftheAmerenCompanieswasrequiredtocomplywithSection404oftheSarbanes-OxleyActof2002andrelatedSECregulationsastomanagementsassessmentofinternalcontroloverfinancialreportingforthe2011fiscalyear.(a)EvaluationofDisclosureControlsandProceduresAsofDecember31,2011,evaluationswereperformedunderthesupervisionandwiththeparticipationofmanagement,includingtheprincipalexecutiveofficerandprincipalfinancialofficerofeachoftheAmerenCompanies,oftheeffectivenessof thedesignandoperationofsuchregistrantsdisclosurecontrolsandprocedures(asdefinedinRules13a-15(e)and15d-15(e) oftheExchangeAct).Basedonthoseevaluations,asofDecember31,2011,theprincipalexecutiveofficerandprincipal financialofficerofeachoftheAmerenCompaniesconcludedthatsuchdisclosurecontrolsandproceduresareeffectiveto provideassurancethatinformationrequiredtobedisclosedinsuchregistrantsreportsfiledorsubmittedundertheExchange Actisrecorded,processed,summarized,andreportedwithinthetimeperiodsspecifiedintheSECsrulesandformsandsuch informationisaccumulatedandcommunicatedtoitsmanagement,includingitsprincipalexecutiveandprincipalfinancial officers,toallowtimelydecisionsregardingrequireddisclosure.
169 (b)ManagementsReportonInternalControloverFinancialReportingManagementisresponsibleforestablishingandmaintainingadequateinternalcontroloverfinancialreporting,assuchtermisdefinedinExchangeActRules13a-15(f)and15d-15(f).Underthesupervisionofandwiththeparticipationof management,includingtheprincipalexecutiveofficerandprincipalfinancialofficer,anevaluationwasconductedofthe effectivenessofeachoftheAmerenCompaniesinternalcontroloverfinancialreportingbasedontheframeworkin InternalControl-IntegratedFrameworkissuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO).Aftermakingthatevaluation
,managementconcludedthateachoftheAmerenCompaniesinternalcontroloverfinancialreportingwaseffectiveasofDecember31,2011.TheeffectivenessofAmerensinternalcontroloverfinancialreportingasof December31,2011,hasbeenauditedbyPricewaterhouseCoopersLLP,anindependentregisteredpublicaccountingfirm,as statedinitsreporthereinunderPartII,Item8.ThisannualreportdoesnotincludeanattestationreportofAmerenMissouris, AmerenIllinoisorGencos(theSubsidiaryRegistrants)independentregisteredpublicaccountingfirmregardinginternal controloverfinancialreporting.ManagementsreportforeachoftheSubsidiaryRegistrantsisnotsubjecttoattestationbythe independentregisteredpublicaccountingfirm.Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenessintofutureperiodsaresubjecttotheriskthatinternalcontrolsmightbecome inadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmight
deteriorate.(c)ChangeinInternalControlTherehasbeennochangeintheAmerenCompaniesinternalcontroloverfinancialreportingduringtheirmostrecentfiscalquarterthathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theirinternalcontroloverfinancial
reporting.ITEM9B.OTHERINFORMATION.TheAmerenCompanieshavenoinformationreportableunderthisitemthatwasrequiredtobedisclosedinareportonSECForm8-Kduringthefourthquarterof2011thathasnotpreviouslybeenreportedonanSECForm8-K.PARTIIIITEM10.DIRECTORS,EXECUTIVEOFFICERSANDCORPORATEGOVERNANCE.InformationrequiredbyItems401,405,406and407(c)(3),(d)(4)and(d)(5)ofSECRegulationS-Kfor Amerenwillbeincludedinitsdefinitiveproxystatementfor its2012annualmeetingofshareholdersfiledpursuantto SECRegulation14A;itisincorporatedhereinbyreference.
InformationrequiredbytheseSECRegulationS-Kitemsfor AmerenMissouriandAmerenIllinoiswillbeincludedin eachcompanysdefinitiveinformationstatementforits 2012annualmeetingofshareholdersfiledpursuanttoSEC Regulation14C;itisincorporatedhereinbyreference.
Specifically,referenceismadetothefollowingsectionsof AmerensdefinitiveproxystatementandeachofAmeren MissourisandAmerenIllinoisdefinitiveinformation statement:InformationConcerningNomineestotheBoard ofDirectors,Section16(a)BeneficialOwnership ReportingCompliance,CorporateGovernanceand BoardStructure.WithrespecttoGenco,thisinformation isomittedinrelianceonGeneralInstructionI(2)ofForm
10-K.InformationconcerningexecutiveofficersoftheAmerenCompaniesrequiredbyItem401ofSECRegulation S-KisreportedunderaseparatecaptionentitledExecutive OfficersoftheRegistrantsinPartIofthisreport.AmerenMissouri,AmerenIllinoisandGencodonothaveseparatelydesignatedstandingauditcommittees,but insteaduseAmerensauditandriskcommitteetoperformsuchcommitteefunctionsfortheirboardsofdirectors.ThesecompanieshavenosecuritieslistedontheNYSEand thereforearenotsubjecttotheNYSElistingstandards.
WalterJ.GalvinservesaschairmanofAmerensauditand riskcommittee,andStephenF.Brauer,CatherineS.Brune andEllenM.Fitzsimmonsserveasmembers.Theboardof directorsofAmerenhasdeterminedthatWalterJ.Galvin qualifiesasanauditcommitteefinancialexpertandthathe isindependentasthattermisusedinSECRegulation
14A.Also,onthesamebasisasreportedabove,theboardsofdirectorsofAmerenMissouri,AmerenIllinoisandGenco usethenominatingandcorporategovernancecommitteeof Amerensboardofdirectorstoperformsuchcommittee functions.Thiscommitteeisresponsibleforthenomination ofdirectorsandcorporategovernancepractices.Amerens nominatingandcorporategovernancecommitteewill considerdirectornominationsfromstockholdersin accordancewithitsPolicyRegardingNominationsof Directors,whichcanbefoundonAmerenswebsite:
www.ameren.com.Toencourageethicalconductinitsfinancialmanagementandreporting,AmerenhasadoptedaCodeof Ethicsthatappliestotheprincipalexecutiveofficer,the president,theprincipalfinancialofficer,theprincipal accountingofficer,thecontroller,andthetreasurerofeach 170 oftheAmerenCompanies.AmerenhasalsoadoptedaCodeofBusinessConductthatappliestothedirectors,officers, andemployeesoftheAmerenCompanies.Itisreferredto astheCorporateCompliancePolicy.TheAmeren CompaniesmakeavailablefreeofchargethroughAmerens website(www.ameren.com)theCodeofEthicsand CorporateCompliancePolicy.AnyamendmenttotheCode ofEthicsandCorporateCompliancePolicyandanywaiverfromaprovisionoftheCodeofEthicsandCorporateCompliancePolicyasitrelatestotheprincipalexecutive officer,thepresident,theprincipalfinancialofficer,the principalaccountingofficer,thecontrollerandthetreasurer ofeachoftheAmerenCompanieswillbepostedon Amerenswebsitewithinfourbusinessdaysfollowingthe dateoftheamendmentorwaiver.ITEM11.EXECUTIVECOMPENSATION.InformationrequiredbyItems402and407(e)(4)and(e)(5)ofSECRegulationS-KforAmerenwillbeincludedinitsdefinitiveproxystatementforits2012annualmeetingofshareholdersfiledpursuanttoSECRegulation14A;itisincorporated hereinbyreference.InformationrequiredbytheseSECRegulationS-KitemsforAmerenMissouriandAmerenIllinoiswillbe includedineachcompanysdefinitiveinformationstatementforits2012annualmeetingofshareholdersfiledpursuanttoSEC Regulation14C;itisincorporatedhereinbyreference.Specifically,referenceismadetothefollowingsectionsofAmerens definitiveproxystatementandeachofAmerenMissourisandAmerenIllinoisdefinitiveinformationstatement:Executive Compensation,andHumanResourcesCommitteeInterlocksandInsiderParticipation.WithrespecttoGenco,this informationisomittedinrelianceonGeneralInstructionI(2)ofForm10-K.ITEM12.SECURITYOWNERSHIPOFCERTAINBENEFICIALOWNERSANDMANAGEMENTANDRELATEDSTOCKHOLDER MATTERS.EquityCompensationPlanInformationThefollowingtablepresentsinformationasofDecember31,2011,withrespecttothesharesofAmerenscommonstockthatmaybeissuedunderitsexistingequitycompensationplans.
Plan CategoryNumberofSecuritiestobeIssuedUponExerciseofOutstandingOptions,WarrantsandRights (a)Weighted-AverageExercisePriceofOutstandingOptions,WarrantsandRights (b)NumberofSecuritiesRemainingAvailableforFutureIssuanceUnderEquityCompensationPlans(excludingsecuritiesreflectedincolumn(a))(c)Equitycompensationplansapprovedbysecurity holders (a)...............................1,744,825$(b)1,877,523Equitycompensationplansnotapprovedbysecurityholders..........................---
Total.....................................1,744,825$(b)1,877,523(a)ConsistsoftheAmerenCorporationLong-termIncentivePlanof1998,whichwasapprovedbystockholdersinApril1998andexpiredonApril1,2008,andtheAmerenCorporation2006OmnibusIncentiveCompensationPlan,whichwasapprovedbystockholdersinMay2006and expiresonMay2,2016.Pursuanttograntsofperformanceshareunits(PSUs)undertheLong-termIncentivePlanof1998andthe2006 OmnibusIncentiveCompensationPlan,211,940ofthesecuritiesrepresentPSUsthatvestedasofDecember31,2011(includingaccruedand reinvesteddividends),and1,496,153ofthesecuritiesrepresenttargetPSUsgrantedbutnotvested(includingaccruedandreinvested dividends)asofDecember31,2011.TheactualnumberofsharesissuedinrespectofthePSUswillvaryfrom0%to200%ofthetargetlevel dependingupontheachievementoftotalstockholderreturnobjectivesestablishedforsuchawards.ForadditionalinformationaboutthePSUs, includingpayoutcalculations,seeCompensationDiscussionandAnalysis-Long-TermIncentives:PerformanceShareUnitProgram(PSUP) inAmerensdefinitiveproxystatementforits2012annualmeetingofstockholdersheldpursuanttoSECRegulation14A.36,732ofthe securitiesrepresentsharesthatmaybeissuedasofDecember31,2011,tosatisfyobligationsundertheAmerenCorporationDeferred CompensationPlanformembersoftheboardofdirectors.(b)EarnedPSUsanddeferredcompensationstockunitsarepaidinsharesofAmerencommonstockonaone-for-onebasis.Accordingly,thePSUsanddeferredcompensationstockunitshavebeenexcludedforpurposesofcalculatingtheweighted-averageexerciseprice.AmerenMissouri,AmerenIllinoisandGencodonothaveseparateequitycompensationplans.SecurityOwnershipofCertainBeneficialOwnersandManagementTheinformationrequiredbyItem403ofSECRegulationS-KforAmerenwillbeincludedinitsdefinitiveproxystatementforits2012annualmeetingofstockholdersfiledpursuanttoSECRegulation14A;itisincorporatedhereinbyreference.
InformationrequiredbythisSECRegulationS-KitemforAmerenMissouriandAmerenIllinoiswillbeincludedineach companysdefinitiveinformationstatementforits2012annualmeetingofstockholdersfiledpursuanttoSECRegulation14C; itisincorporatedhereinbyreference.Specifically,referenceismadetothefollowingsectionofAmerensdefinitiveproxy statementandeachofAmerenMissourisandAmerenIllinoisstockholdersdefinitiveinformationstatement:Security Ownership.WithrespecttoGenco,thisinformationisomittedinrelianceonGeneralInstructionI(2)ofForm10-K.
171 ITEM13.CERTAINRELATIONSHIPSANDRELATEDTRANSACTIONSANDDIRECTORINDEPENDENCE.InformationrequiredbyItem404andItem407(a)ofSECRegulationS-KforAmerenwillbeincludedinitsdefinitiveproxystatementforits2012annualmeetingofstockholdersfiledpursuanttoSECRegulation14A;itisincorporatedhereinby reference.InformationrequiredbyItem404ofSECRegulationS-KforAmerenMissouriandAmerenIllinoiswillbeincludedin eachcompanysdefinitiveinformationstatementforits2012annualmeetingofstockholdersfiledpursuanttoSEC Regulation14C;itisincorporatedhereinbyreference.Specifically,referenceismadetothefollowingsectionsofAmerens definitiveproxystatementandeachofAmerenMissourisandAmerenIllinoisdefinitiveinformationstatement:Policyand ProceduresWithRespecttoRelatedPersonTransactionsandDirectorIndependence.WithrespecttoGenco,this informationisomittedinrelianceonGeneralInstructionI(2)ofForm10-K.ITEM14.PRINCIPALACCOUNTINGFEESANDSERVICES.InformationrequiredbyItem9(e)ofSECSchedule14AfortheAmerenCompanieswillbeincludedinthedefinitiveproxystatementofAmerenandthedefinitiveinformationstatementsofAmerenMissouriandAmerenIllinoisfortheir2012annual meetingsofstockholdersfiledpursuanttoSECRegulations14Aand14C,respectively;itisincorporatedhereinbyreference.
InformationrequiredbythisItemofForm10-KforGencoisidenticaltotheinformationthatwillbeincludedinAmerens definitiveproxystatementandinthedefinitiveinformationstatementsofAmerenMissouriandAmerenIllinoisfortheir2012 annualmeetingsofstockholdersfiledpursuanttoSECRegulations14Aand14C,respectively;itisincorporatedhereinby reference.Specifically,referenceismadetothefollowingsectionofAmerensdefinitiveproxystatementandeachofAmeren MissourisandAmerenIllinoisdefinitiveinformationstatement:IndependentRegisteredPublicAccountingFirm.PARTIVITEM15.EXHIBITSANDFINANCIALSTATEMENTSCHEDULES.(a)(1)FinancialStatementsPageNo.AmerenReportofIndependentRegisteredPublicAccountingFirm..........................................................79ConsolidatedStatementofIncome-YearsEndedDecember31,2011,2010,and2009...................................81ConsolidatedBalanceSheet-December31,2011and2010.......................................................82ConsolidatedStatementofCashFlows-YearsEndedDecember31,2011,2010,and2009................................83ConsolidatedStatementofStockholdersEquity-YearsEndedDecember31,2011,2010,and2009.........................84UnionElectricCompany ReportofIndependentRegisteredPublicAccountingFirm..........................................................79StatementofIncome-YearsEndedDecember31,2011,2010,and2009..............................................85BalanceSheet-December31,2011and2010...................................................................86StatementofCashFlows-YearsEndedDecember31,2011,2010,and2009..........................................87StatementofStockholdersEquity-YearsEndedDecember31,2011,2010,and2009...................................88AmerenIllinois ReportofIndependentRegisteredPublicAccountingFirm..........................................................80ConsolidatedStatementofIncome-YearsEndedDecember31,2011,2010,and2009...................................89ConsolidatedBalanceSheet-December31,2011and2010........................................................90ConsolidatedStatementofCashFlows-YearsEndedDecember31,2011,2010,and2009................................91ConsolidatedStatementofStockholdersEquity-YearsEndedDecember31,2011,2010,and2009.........................92 Genco ReportofIndependentRegisteredPublicAccountingFirm..........................................................80ConsolidatedStatementofIncome-YearsEndedDecember31,2011,2010,and2009...................................93ConsolidatedBalanceSheet-December31,2011and2010........................................................94ConsolidatedStatementofCashFlows-YearsEndedDecember31,2011,2010,and2009................................95ConsolidatedStatementofStockholdersEquity-YearsEndedDecember31,2011,2010,and2009.........................96(a)(2)FinancialStatementSchedules ReportofIndependentRegisteredPublicAccountingFirmonFinancialStatementSchedules...............................173ScheduleI-CondensedFinancialInformationofParent-Ameren:CondensedStatementofIncome-YearsEndedDecember31,2011,2010,and2009................................174CondensedBalanceSheet-December31,2011and2010.....................................................174CondensedStatementofCashFlows-YearsEndedDecember31,2011,2010,and2009.............................174ScheduleII-ValuationandQualifyingAccountsfortheyearsendedDecember31,2011,2010,and2009....................176ScheduleIandIIshouldbereadinconjunctionwiththeaforementionedfinancialstatements.Certainscheduleshavebeenomittedbecausetheyarenotapplicableorbecausetherequireddataisshownintheaforementionedfinancial
statements.(a)(3)Exhibits.ReferenceismadetotheExhibitIndexcommencingonpage181.(b)ExhibitsarelistedintheExhibitIndexcommencingonpage181.
172 ReportofIndependentRegisteredPublicAccountingFirmonFinancialStatementSchedulesTotheBoardofDirectorsandShareholdersofAmerenCorporation:OurauditsoftheconsolidatedfinancialstatementslistedintheindexappearingunderItem15(a)(1)andoftheeffectivenessofinternalcontroloverfinancialreportingreferredtoinourreportdatedFebruary28,2012alsoincludedanauditofthefinancial statementscheduleslistedinItem15(a)(2)ofthisForm10-K.Inouropinion,thesefinancialstatementschedulespresent fairly,inallmaterialrespects,theinformationsetforththereinwhenreadinconjunctionwiththerelatedconsolidatedfinancial
statements.AsdisclosedinNote6toScheduleI,theCompanyhasrestateditsParentCompanyonlycondensedstatementofcashflowsincludedonScheduleIfortheyearsendedDecember31,2010andDecember31,2009./s/PricewaterhouseCoopersLLP PricewaterhouseCoopersLLP St.Louis,Missouri February28,2012ReportofIndependentRegisteredPublicAccountingFirmonFinancialStatementSchedulesTotheBoardofDirectorsandShareholdersofUnionElectricCompany:OurauditsofthefinancialstatementslistedintheindexappearingunderItem15(a)(1)referredtoinourreportdatedFebruary28,2012alsoincludedanauditofthefinancialstatementschedulelistedinItem15(a)(2)ofthisForm10-K.Inour opinion,thisfinancialstatementschedulepresentsfairly,inallmaterialrespects,theinformationsetforththereinwhenreadin conjunctionwiththerelatedfinancialstatements./s/PricewaterhouseCoopersLLP PricewaterhouseCoopersLLP St.Louis,Missouri February28,2012ReportofIndependentRegisteredPublicAccountingFirmonFinancialStatementSchedulesTotheBoardofDirectorsandShareholdersofAmerenIllinoisCompany:OurauditsoftheconsolidatedfinancialstatementslistedintheindexappearingunderItem15(a)(1)referredtoinourreportdatedFebruary28,2012alsoincludedanauditofthefinancialstatementschedulelistedinItem15(a)(2)ofthisForm10-K.In ouropinion,thisfinancialstatementschedulepresentsfairly,inallmaterialrespects,theinformationsetforththereinwhen readinconjunctionwiththerelatedconsolidatedfinancialstatements./s/PricewaterhouseCoopersLLP PricewaterhouseCoopersLLP St.Louis,Missouri February28,2012 173 SCHEDULEI-CONDENSEDFINANCIALINFORMATIONOFPARENTAMERENCORPORATIONCONDENSEDSTATEMENTOFINCOMEFortheYearsEndedDecember31,2011,2010and2009(Inmillions)201120102009Operatingrevenues
.........................................................
$-$-$-Goodwill,impairmentandothercharges
.........................................
-372-Operatingexpenses
.........................................................
152420Operatingloss
.............................................................
(15)(396)(20)Equityinearningsofsubsidiaries
..............................................
527535625Interestincomefromaffiliates
.................................................
442836Miscellaneousexpense
......................................................
4 34Interestcharges
............................................................
415637Incometax(benefit)
.........................................................
(8)(31)(12)Netincome................................................................$519$139$612SCHEDULEI-CONDENSEDFINANCIALINFORMATIONOFPARENTAMERENCORPORATIONCONDENSEDBALANCESHEET(Inmillions)December31,2011December31,2010 Assets:Cashandcashequivalents
..........................................................
$3$4Advancestomoneypool
............................................................
340 64Accountsandnotesreceivable-affiliates
...............................................
57 405Othercurrentassets
...............................................................
-2Totalcurrentassets
..............................................................
400 475Investmentsinsubsidiaries
.........................................................
7,532 7,681Notereceivable-affiliate
...........................................................
425 425Othernon-currentassets
...........................................................
333 403Totalassets
........................................................................$8,690$8,984LiabilitiesandStockholdersEquity:
.....................................................Short-termdebt
..................................................................$148$269Accountspayable-affiliates
.........................................................
13 41Othercurrentliabilities
.............................................................
62 75Totalcurrentliabilities
............................................................
223 385Creditfacilityborrowings
...........................................................
-360Long-termdebt
...................................................................
424 423Otherdeferredcreditsandliabilities
...................................................
74 69Totalliabilities
..................................................................
721 1,237CommitmentsandContingenciesStockholdersEquity:Commonstock,$.01parvalue,400.0sharesauthorizedsharesoutstandingof242.6and240.4,respectively
....................................................
2 2Otherpaid-incapital,principallypremiumoncommonstock
................................
5,598 5,520Retainedearnings
.................................................................
2,369 2,225Totalstockholdersequity
.........................................................
7,969 7,747Totalliabilitiesandstockholdersequity
..................................................$8,690$8,984SCHEDULEI-CONDENSEDFINANCIALINFORMATIONOFPARENTAMERENCORPORATIONCONDENSEDSTATEMENTOFCASHFLOWSFortheYearsEndedDecember31,2011,2010and2009(Inmillions)2011Restated2010Restated2009Netcashflowsprovidedbyoperatingactivities
...........................................$804$241$270Cashflowsfrominvestingactivities:Moneypooladvances,net
.........................................................
(276)18300Notesreceivable-affiliates,net
....................................................
358242(712)Investmentsinsubsidiaries
........................................................
(94)(13)(831)Other.........................................................................
(2)1-Netcashflowsprovidedby(usedin)investingactivities
....................................
(14)248(1,243)Cashflowsfromfinancingactivities:Dividendsoncommonstock
.......................................................
(375)(368)(338)Short-termdebtandcreditfacilityborrowings,net
......................................
(481)(221)275Issuancesof:Long-termdebt
...............................................................
--423Commonstock
...............................................................
6580634 Other.........................................................................
--(19)Netcashflowsprovidedby(usedin)financingactivities
...................................
(791)(509)975 174 SCHEDULEI-CONDENSEDFINANCIALINFORMATIONOFPARENTAMERENCORPORATIONCONDENSEDSTATEMENTOFCASHFLOWSFortheYearsEndedDecember31,2011,2010and2009(Inmillions)2011Restated2010Restated2009Netchangeincashandcashequivalents
................................................$(1)$(20)$2Cashandcashequivalentsatbeginningofyear
...........................................
42422Cashandcashequivalentsattheendofyear
.............................................
$3$4$24Cashdividendsreceivedfromconsolidatedsubsidiaries
....................................$730$368$338AMERENCORPORATION(parentcompanyonly)NOTESTOCONDENSEDFINANCIALSTATEMENTSDecember31,2011NOTE1-BASISOFPRESENTATIONAmerenCorporation(parentcompanyonly)isapublicutilityholdingcompanythatconductssubstantiallyallofitsbusinessoperationsthroughitssubsidiaries.AsspecifiedinNote5-Long-termDebtandEquityFinancingsunderPartII, Item8,ofthisreport,therearerestrictionsonAmerenCorporations(parentcompanyonly)abilitytoobtainfundsfrom certainofitssubsidiariesthroughdividends,loansoradvances.Inaccordancewithauthoritativeaccountingguidance,Ameren Corporation(parentcompanyonly)hasaccountedforwhollyownedsubsidiariesusingtheequitymethod.Thesefinancial statementsarepresentedonacondensedbasis.Additionaldisclosuresrelatingtotheparentcompanyfinancialstatementsare includedwithinthecombinednotesunderPartII,Item8,ofthisreport.NOTE2-SHORT-TERMDEBTANDLIQUIDITYSeeNote4-Short-termDebtandLiquidityunderPartII,Item8,ofthisreportforadescriptionanddetailsofshort-termdebtandliquidityneedsofAmerenCorporation(parentcompanyonly).NOTE3-LONG-TERMOBLIGATIONSSeeNote5-Long-termDebtandEquityFinancingsunderPartII,Item8,ofthisreportforadescriptionanddetailsoflong-termobligationsofAmerenCorporation(parentcompanyonly).NOTE4-COMMITMENTSANDCONTINGENCIESSeeNote15-CommitmentsandContingenciesunderPartIIItem8,ofthisreportforadescriptionofallmaterialcontingenciesandguaranteesoutstandingofAmerenCorporation(parentcompanyonly).NOTE5-GOODWILLANDOTHERASSETIMPAIRMENTSSeeNote17-Goodwill,ImpairmentsandOtherChargesunderPartII,Item8,ofthisreportforadescriptionoftheimpairmentchargesincurredbyAmerenCorporation(parentcompanyonly)in2010.NOTE6-RESTATEMENTSDuring2011,AmerenCorporation(parentcompanyonly)identifiedanerrorinthecashflowstatementclassificationofintercompanynotesreceivablethatimpactedyearsendedDecember31,2010,and2009.FortheyearendedDecember31,2010,previouslyreportedcashflowsprovidedbyoperatingactivitieswere$522millionandcashflowsusedininvestingactivitieswere$33million.Ascorrectedherein,cashflowsprovidedbyoperatingactivitieswere$241millionandcashflowsprovidedbyinvestingactivitieswere$248million.FortheyearendedDecember31,2009,previouslyreportedcashflowsusedinoperatingactivitieswere$442millionandcashflowsusedininvestingactivitieswere$531million.Ascorrectedherein,cashflowsprovided byoperatingactivitieswere$270millionandcashflowsusedininvestingactivitieswere$1,243million.
175 SCHEDULEII-VALUATIONANDQUALIFYINGACCOUNTSFORTHEYEARSENDEDDECEMBER31,2011,2010AND2009(inmillions)ColumnAColumnBColumnCColumnDColumnE DescriptionBalanceat BeginningofPeriod (1)ChargedtoCostsandExpenses (2)ChargedtoOtherAccountsDeductions (a)BalanceatEndofPeriod Ameren:Deductedfromassets-allowancefordoubtfulaccounts:
2011.......................................$23$41$-$44$20 2010.......................................2433-3423 2009.......................................2837-4124AmerenMissouri:Deductedfromassets-allowancefordoubtfulaccounts:
2011.......................................$8$17$-$18$7 2010.......................................614-128 2009.......................................88-106AmerenIllinois:Deductedfromassets-allowancefordoubtfulaccounts:
2011.......................................$13$24$-$24$13 2010.......................................1718-2213 2009.......................................2127-3117(a)Uncollectibleaccountschargedoff,lessrecoveries.
176 SIGNATURESPursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,eachregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized.Thesignaturesforeach undersignedcompanyshallbedeemedtorelateonlytomattershavingreferencetosuchcompanyoritssubsidiaries.AMERENCORPORATION (registrant)Date:February28,2012 By/s/ThomasR.VossThomasR.VossChairman,PresidentandChiefExecutiveOfficerPursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedateindicated./s/ThomasR.VossThomasR.VossChairman,PresidentandChiefExecutiveOfficerandDirector (PrincipalExecutiveOfficer)February28,2012/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.SeniorVicePresidentandChiefFinancialOfficer (PrincipalFinancialandAccounting
Officer)February28,2012
- StephenF.BrauerDirectorFebruary28,2012
- CatherineS.BruneDirectorFebruary28,2012
- EllenM.FitzsimmonsDirectorFebruary28,2012
- WalterJ.GalvinDirectorFebruary28,2012
- GayleP.W.JacksonDirectorFebruary28,2012
- JamesC.JohnsonDirectorFebruary28,2012
- StevenH.LipsteinDirectorFebruary28,2012
- PatrickT.StokesDirectorFebruary28,2012
- StephenR.WilsonDirectorFebruary28,2012
- JackD.WoodardDirectorFebruary28,2012*By/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.
Attorney-in-FactFebruary28,2012 177 UNIONELECTRICCOMPANY (registrant)Date:February28,2012 By/s/WarnerL.BaxterWarnerL.BaxterChairman,PresidentandChiefExecutiveOfficerPursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedateindicated./s/WarnerL.BaxterWarnerL.BaxterChairman,President,ChiefExecutiveOfficerandDirector (PrincipalExecutiveOfficer)February28,2012/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.SeniorVicePresident,ChiefFinancialOfficerandDirector(PrincipalFinancialand AccountingOfficer)February28,2012
- DanielF.ColeDirectorFebruary28,2012
- AdamC.HeflinDirectorFebruary28,2012
- RichardJ.MarkDirectorFebruary28,2012
- CharlesD.NaslundDirectorFebruary28,2012
- GregoryL.NelsonDirectorFebruary28,2012*By/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.
Attorney-in-FactFebruary28,2012 178 AMERENILLINOISCOMPANY (registrant)Date:February28,2012 By/s/ScottA.CiselScottA.CiselChairman,PresidentandChiefExecutiveOfficerPursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedateindicated./s/ScottA.CiselScottA.CiselChairman,President,ChiefExecutiveOfficerandDirector (PrincipalExecutiveOfficer)February28,2012/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.SeniorVicePresident,ChiefFinancialOfficerandDirector(PrincipalFinancial andAccountingOfficer)February28,2012
- DanielF.ColeDirectorFebruary28,2012
- GregoryL.NelsonDirectorFebruary28,2012*By/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.
Attorney-in-FactFebruary28,2012 179 AMERENENERGYGENERATINGCOMPANY (registrant)Date:February28,2012By/s/StevenR.SullivanStevenR.SullivanChairmanandPresidentPursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedateindicated./s/StevenR.SullivanStevenR.SullivanChairman,PresidentandDirector(PrincipalExecutiveOfficer)February28,2012/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.SeniorVicePresident,ChiefFinancialOfficerandDirector(PrincipalFinancial andAccountingOfficer)February28,2012
- DanielF.ColeDirectorFebruary28,2012
- GregoryL.NelsonDirectorFebruary28,2012*By/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.
Attorney-in-FactFebruary28,2012 180 EXHIBITINDEXThedocumentslistedbelowarebeingfiledorhavepreviouslybeenfiledonbehalfoftheAmerenCompaniesandareincorporatedhereinbyreferencefromthedocumentsindicatedandmadeaparthereof.Exhibitsnotidentifiedaspreviously filedarefiledherewith:ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:PlanofAcquisition,Reorganization,Arrangement,LiquidationorSuccession2.1AmerenIllinoisAgreementandPlanofMerger,datedasofApril13,2010,amongCIPS,CILCOandIPAnnexAtoPartIoftheRegistrationStatementonFormS-4,FileNo.333-166095).ArticlesofIncorporation/By-Laws3.1(i)AmerenRestatedArticlesofIncorporationofAmerenAnnexFtoPartIoftheRegistration StatementonFormS-4,FileNo.33-641653.2(i)AmerenCertificateofAmendmenttoAmerensRestatedArticlesofIncorporationfiledDecember14,19981998Form10-K,Exhibit3(i),FileNo.1-147563.3(i)AmerenCertificateofAmendmenttoAmerensRestatedArticlesofIncorporationfiledApril21,2011April21,2011Form8-K,Exhibit3(i),FileNo.1-147563.4(i)AmerenMissouriRestatedArticlesofIncorporationofAmerenMissouri1993Form10-K,Exhibit3(i),FileNo.1-29673.5(i)AmerenIllinoisRestatedArticlesofIncorporationofAmerenIllinois2010Form10-K,Exhibit3.4(i),FileNo.1-36723.6(i)GencoArticlesofIncorporationofGencoExhibit3.1,FormS-4,FileNo.333-56594 3.7(i)GencoAmendmenttoArticlesofIncorporationofGencofiledApril19,2000Exhibit3.2,FormS-4,FileNo.333-565943.8(ii)AmerenBy-LawsofAmeren,asamendedOctober8, 2010October13,2010Form8-K,Exhibit3.1(ii),FileNo.1-147563.9(ii)AmerenMissouriBy-LawsofAmerenMissouriasamendedDecember10,2010December15,2010Form8-K,Exhibit3.1(ii),FileNo.1-29673.10(ii)AmerenIllinoisBylawsofAmerenIllinoisasamendedDecember10,2010December15,2010Form8-K,Exhibit3.2(ii),FileNo.1-36723.11(ii)GencoBylawsofGencoasamendedDecember10, 2010December15,2010Form8-K,Exhibit3.3(ii),FileNo.333-56594InstrumentsDefiningRightsofSecurityHolders,IncludingIndentures4.1AmerenIndenturedatedasofDecember1,2001fromAmerentoTheBankofNewYorkMellonTrustCompany,N.A.,assuccessortrustee,relatingtoseniordebtsecurities(AmerenIndenture)Exhibit4.5,FileNo.333-817744.2AmerenFirstSupplementalIndenturetoAmerenSeniorIndenturedatedasofMay19,2008June30,2008Form10-Q,Exhibit4.1,FileNo.1-147564.3AmerenAmerenIndentureCompanyOrderdatedMay15,2009,establishing8.875%SeniorNotes,due2014(includingtheglobalnote)May15,2009Form8-K,Exhibits4.3and4.4,FileNo.1-147564.4AmerenAmerenMissouriIndentureofMortgageandDeedofTrustdatedJune15,1937(AmerenMissouriMortgage),fromAmerenMissouritoTheBankofNewYorkMellon,assuccessortrustee,asamendedMay1,1941,andSecondSupplementalIndenturedatedMay1,1941ExhibitB-1,FileNo.2-49404.5AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedasofJuly1,1956August2,1956Form8-K,Exhibit2,FileNo.1-2967 181 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:4.6AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedasofApril1, 1971April1971Form8-K,Exhibit6,FileNo.1-29674.7AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedasofFebruary1, 1974February1974Form8-K,Exhibit3,FileNo.1-29674.8AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedasofJuly7,1980Exhibit4.6,FileNo.2-698214.9AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedasofOctober1,1993,relativetoSeries20281993Form10-K,Exhibit4.8,FileNo.1-29674.10AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedasofFebruary1, 20002000Form10-K,Exhibit4.1,FileNo.1-29674.11AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedAugust15,2002,relativetoSeriesAAAugust23,2002Form8-K,Exhibit4.3,FileNo.1-29674.12AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedMarch5,2003,relativetoSeriesBBMarch11,2003Form8-K,Exhibit4.4,FileNo.1-29674.13AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedApril1,2003,relativetoSeriesCCApril10,2003Form8-K,Exhibit4.4,FileNo.1-29674.14AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedJuly15,2003,relativetoSeriesDDAugust4,2003Form8-K,Exhibit4.4,FileNo.1-29674.15AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedOctober1,2003,relativetoSeriesEEOctober8,2003Form8-K,Exhibit4.4,FileNo.1-29674.16AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedFebruary1,2004,relativetoSeries2004A(1998A)March31,2004Form10-Q,Exhibit4.1,FileNo.1-29674.17AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedFebruary1,2004,relativetoSeries2004B(1998B)March31,2004Form10-Q,Exhibit4.2,FileNo.1-29674.18AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedFebruary1,2004,relativetoSeries2004C(1998C)March31,2004Form10-Q,Exhibit4.3,FileNo.1-29674.19AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedFebruary1,2004,relativetoSeries2004H(1992)March31,2004Form10-Q,Exhibit4.8,FileNo.1-29674.20AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedMay1,2004relativetoSeriesFFMay18,2004Form8-K,Exhibit4.4,FileNo.1-29674.21AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedSeptember1,2004relativetoSeriesGGSeptember23,2004Form8-K,Exhibit4.4,FileNo.1-29674.22AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedJanuary1,2005relativetoSeriesHHJanuary27,2005Form8-K,Exhibit4.4,FileNo.1-29674.23Ameren Ameren MissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedJuly1,2005relativetoSeriesIIJuly21,2005Form8-K,Exhibit4.4,FileNo.1-29674.24AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedDecember1,2005relativetoSeriesJJDecember9,2005Form8-K,Exhibit4.4,FileNo.1-2967 182 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:4.25AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedJune1,2007 relativetoSeriesKKJune15,2007Form8-K,Exhibit4.5,FileNo.1-29674.26AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedApril1,2008relativetoSeriesLLApril8,2008Form8-K,Exhibit4.7,FileNo.1-29674.27AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedJune1,2008relativetoSeriesMMJune19,2008Form8-K,Exhibit4.5,FileNo.1-29674.28AmerenAmerenMissouriSupplementalIndenturetotheAmerenMissouriMortgagedatedMarch1,2009relativetoSeriesNNMarch23,2009Form8-K,Exhibit4.5,FileNo.1-29674.29AmerenAmerenMissouriLoanAgreementdatedasofDecember1,1992,betweentheMissouriEnvironmentalAuthorityandAmerenMissouri,togetherwithIndentureofTrustdatedasofDecember1,1992,betweentheMissouriEnvironmentalAuthorityandUMBBank,N.A.assuccessortrusteetoMercantileBankofSt.Louis,N.A.1992Form10-K,Exhibit4.38,FileNo.1-29674.30AmerenAmerenMissouriFirstAmendmentdatedasofFebruary1,2004,toLoanAgreementdatedasofDecember1,1992,betweentheMissouriEnvironmentalAuthorityandAmeren MissouriMarch31,2004Form10-Q,Exhibit4.10,FileNo.1-29674.31AmerenAmerenMissouriSeries1998ALoanAgreementdatedasofSeptember1,1998,betweentheMissouriEnvironmentalAuthorityandAmeren MissouriSeptember30,1998Form10-Q,Exhibit4.28,FileNo.1-29674.32AmerenAmerenMissouriFirstAmendmentdatedasofFebruary1,2004,toSeries1998ALoanAgreementdatedasofSeptember1,1998,betweentheMissouriEnvironmentalAuthorityandAmerenMissouriMarch31,2004Form10-Q,Exhibit4.11,FileNo.1-29674.33AmerenAmerenMissouriSeries1998BLoanAgreementdatedasofSeptember1,1998,betweentheMissouriEnvironmentalAuthorityandAmeren MissouriSeptember30,1998Form10-Q,Exhibit4.29,FileNo.1-29674.34AmerenAmerenMissouriFirstAmendmentdatedasofFebruary1,2004,toSeries1998BLoanAgreementdatedasofSeptember1,1998,betweentheMissouriEnvironmentalAuthorityandAmerenMissouriMarch31,2004Form10-Q,Exhibit4.12,FileNo.1-29674.35AmerenAmerenMissouriSeries1998CLoanAgreementdatedasofSeptember1,1998,betweentheMissouriEnvironmentalAuthorityandAmeren MissouriSeptember30,1998Form10-Q,Exhibit4.30,FileNo.1-29674.36AmerenAmerenMissouriFirstAmendmentdatedasofFebruary1,2004,toSeries1998CLoanAgreementdatedasofSeptember1,1998,betweentheMissouriEnvironmentalAuthorityandAmerenMissouriMarch31,2004Form10-Q,Exhibit4.13,FileNo.1-29674.37AmerenAmerenMissouriIndenturedatedasofAugust15,2002, fromAmerenMissouritoTheBankofNewYorkMellon,assuccessortrustee(relatingtoseniorsecureddebtsecurities)(AmerenMissouriIndenture)August23,2002Form8-K,Exhibit4.1,FileNo.1-2967 183 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:4.38AmerenAmerenMissouriAmerenMissouriIndentureCompanyOrderdatedAugust22,2002,establishingthe 5.25%SeniorSecuredNotesdue2012 (includingtheglobalnote)August23,2002Form8-K,Exhibit4.2,FileNo.1-29674.39AmerenAmerenMissouriAmerenMissouriIndentureCompanyOrderdatedMarch10,2003,establishingthe5.50%SeniorSecuredNotesdue2034(includingtheglobalnote)March11,2003Form8-K,Exhibits4.2and4.3,FileNo.1-29674.40AmerenAmerenMissouriAmerenMissouriIndentureCompanyOrderdatedApril9,2003,establishingthe4.75%SeniorSecuredNotesdue2015(includingtheglobalnote)April10,2003Form8-K,Exhibits4.2and4.3,FileNo.1-29674.41AmerenAmerenMissouriAmerenMissouriIndentureCompanyOrderdatedJuly28,2003,establishingthe5.10%SeniorSecuredNotesdue2018(includingtheglobalnote)August4,2003Form8-K,Exhibits4.2and4.3,FileNo.1-29674.42AmerenAmerenMissouriAmerenMissouriIndentureCompanyOrderdatedOctober7,2003,establishingthe4.65%SeniorSecuredNotesdue2013(includingtheglobalnote)October8,2003Form8-K,Exhibits4.2and4.3,FileNo.1-29674.43AmerenAmerenMissouriAmerenMissouriIndentureCompanyOrderdatedMay13,2004,establishingthe5.50%SeniorSecuredNotesdue2014(includingtheglobalnote)May18,2004Form8-K,Exhibits4.2and4.3,No.1-29674.44AmerenAmerenMissouriAmerenMissouriIndentureCompanyOrderdatedSeptember1,2004,establishingthe5.10%SeniorSecuredNotesdue2019(includingtheglobalnote)September23,2004Form8-K,Exhibits4.2and4.3,No.1-29674.45AmerenAmerenMissouriAmerenMissouriIndentureCompanyOrderdatedJanuary27,2005,establishingthe5.00%SeniorSecuredNotesdue2020(includingtheglobalnote)January27,2005Form8-K,Exhibits4.2and4.3,FileNo.1-29674.46AmerenAmerenMissouriAmerenMissouriIndentureCompanyOrderdatedJuly21,2005,establishingthe5.30%SeniorSecuredNotesdue2037(includingtheglobalnote)July21,2005Form8-K,Exhibits4.2and4.3,FileNo.1-29674.47AmerenAmerenMissouriAmerenMissouriIndentureCompanyOrderdatedDecember8,2005,establishingthe5.40%SeniorSecuredNotesdue2016(includingtheglobalnote)December9,2005Form8-K,Exhibits4.2and4.3,FileNo.1-29674.48AmerenAmerenMissouriAmerenMissouriIndentureCompanyOrderdatedJune15,2007,establishingthe6.40%SeniorSecuredNotesdue2017(includingtheglobalnote)June15,2007Form8-K,Exhibits4.2and4.3,FileNo.1-29674.49AmerenAmerenMissouriAmerenMissouriIndentureCompanyOrderdatedApril8,2008,establishingthe6.00%SeniorSecuredNotesdue2018(includingtheglobalnote)April8,2008Form8-K,Exhibits4.3and4.5,FileNo.1-29674.50AmerenAmerenMissouriAmerenMissouriIndentureCompanyOrderdatedJune19,2008,establishingthe6.70%SeniorSecuredNotesdue2019(includingtheglobalnote)June19,2008Form8-K,Exhibits4.2and4.3,FileNo.1-29674.51AmerenAmerenMissouriAmerenMissouriIndentureCompanyOrderdatedMarch20,2009,establishing8.45%SeniorSecuredNotesdue2039(includingtheglobalnote)March23,2009Form8-K,Exhibits4.2and4.3,FileNo.1-2967 184 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:4.52AmerenAmerenIllinoisIndenturedatedasofDecember1,1998,fromCentralIllinoisPublicService Company(nowknownasAmerenIllinois) toTheBankofNewYorkMellonTrust Company,N.A.,assuccessortrustee(CIPS
Indenture)Exhibit4.4,FileNo.333-594384.53AmerenAmerenIllinoisFirstSupplementalIndenturetotheCIPSIndenture,datedasofJune14,2006June19,2006Form8-K,Exhibit4.2,FileNo.1-36724.54AmerenAmerenIllinoisSecondSupplementalIndenturetotheCIPSIndenture,datedasofMarch1,2010Exhibit4.17,FileNo.333-1660954.55AmerenAmerenIllinoisThirdSupplementalIndenturetotheCIPSIndenture,datedasofOctober1,20102010Form10-K,Exhibit4.59,FileNo.1-36724.56AmerenAmerenIllinoisAmerenIllinoisGlobalNote,datedOctober1,2010,representingCIPSIndentureSeniorNotes,6.125%due20282010Form10-K,Exhibit4.60,FileNo.1-36724.57AmerenAmerenIllinoisAmerenIllinoisGlobalNote,datedOctober1,2010,representingCIPSIndentureSeniorNotes,6.70%SeriesSecuredNotesdue20362010Form10-K,Exhibit4.62,FileNo.1-36724.58AmerenAmerenIllinoisIndentureofMortgageandDeedofTrustbetweenIllinoisPowerCompany(predecessorininteresttoCILCOandAmerenIllinois)andBankersTrustCompany(nowknownasDeutscheBankTrustCompanyAmericas),astrustee,datedasofApril1,1933(CILCOMortgage),SupplementalIndenturebetweenthesamepartiesdatedasofJune30,1933,SupplementalIndenturebetweenCILCO(predecessorininteresttoAmerenIllinois)andthetrustee,datedasofJuly1,1933,SupplementalIndenturebetweenthesamepartiesdatedasofJanuary1,1935,andSupplementalIndenturebetweenthesamepartiesdatedasofApril1,1940ExhibitB-1,RegistrationNo.2-1937;ExhibitB-1(a),RegistrationNo.2-2093;andExhibitA,April1940Form8-K,FileNo.1-27324.59AmerenAmerenIllinoisSupplementalIndenturetotheCILCOMortgage,datedDecember1,1949December1949Form8-K,ExhibitA,FileNo.1-27324.60AmerenAmerenIllinoisSupplementalIndenturetotheCILCOMortgage,datedJuly1,1957July1957Form8-K,ExhibitA,FileNo.1-27324.61AmerenAmerenIllinoisSupplementalIndenturetotheCILCOMortgage,datedFebruary1,1966February1966Form8-K,ExhibitA,FileNo.1-27324.62AmerenAmerenIllinoisSupplementalIndenturetotheCILCOMortgage,datedJanuary15,1992January30,1992Form8-K,Exhibit4(b),FileNo.1-27324.63AmerenAmerenIllinoisSupplementalIndenturetotheCILCOMortgage,datedJune1,2006fortheSeriesAAandBBJune19,2006Form8-K,Exhibit4.11,FileNo.1-27324.64AmerenAmerenIllinoisSupplementalIndenturetotheCILCOMortgage,datedDecember1,2008fortheSeriesCCDecember9,2008Form8-K,Exhibit4.5,FileNo.1-27324.65AmerenAmerenIllinoisSupplementalIndenturetotheCILCOMortgage,datedasofOctober1,2010October7,2010Form8K,Exhibit4.4, FileNo.1-147564.66AmerenAmerenIllinoisIndenturedatedasofJune1,2006,fromCILCO(predecessorininteresttoAmerenIllinois)toTheBankofNewYorkMellonTrustCompany,N.A.,assuccessortrustee(CILCOIndenture)June19,2006Form8-K,Exhibit4.3,FileNo.1-2732 185 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:4.67AmerenAmerenIllinoisFirstSupplementalIndenturetotheCILCOIndenture,datedOctober1,2010October7,2010Form8K,Exhibit4.1,FileNo.1-36724.68AmerenAmerenIllinoisSecondSupplementalIndenturetotheCILCOIndenturedatedasofJuly21,2011September30,2011Form10-Q,Exhibit4.1,FileNo.1-36724.69AmerenAmerenIllinoisCILCOIndentureCompanyOrder,datedJune14,2006,establishingthe6.20%SeniorSecuredNotesdue2016(includingtheglobalnote)andthe6.70%SeniorSecuredNotesdue2036(includingtheglobalnote)June19,2006Form8-K,Exhibit4.6,FileNo.1-27324.70AmerenAmerenIllinoisCILCOIndentureCompanyOrder,datedDecember9,2008,establishingthe8.875%SeniorSecuredNotesdue2013(includingtheglobalnote)December9,2008Form8-K,Exhibits4.2and4.3,FileNo.1-27324.71AmerenAmerenIllinoisGeneralMortgageIndentureandDeedofTrustdatedasofNovember1,1992betweenIllinoisPowerCompany(predecessorininteresttoAmerenIllinois)andTheBankofNewYorkMellonTrustCompany,N.A.,assuccessortrustee(AmerenIllinoisMortgage)1992Form10-K,Exhibit4(cc),FileNo.1-30044.72AmerenAmerenIllinoisSupplementalIndenturedatedasofMarch1,1998,toAmerenIllinoisMortgageforSeriesSExhibit4.41,FileNo.333-710614.73AmerenAmerenIllinoisSupplementalIndenturedatedasofMarch1,1998,toAmerenIllinoisMortgageforSeriesTExhibit4.42,FileNo.333-710614.74AmerenAmerenIllinoisSupplementalIndentureamendingtheAmerenIllinoisMortgagedatedasofJune15,1999June30,1999Form10-Q,Exhibit4.2,FileNo.1-30044.75AmerenAmerenIllinoisSupplementalIndenturedatedasofJuly15,1999,toAmerenIllinoisMortgageforSeriesUJune30,1999Form10-Q,Exhibit4.4,FileNo.1-30044.76AmerenAmerenIllinoisSupplementalIndentureamendingtheAmerenIllinoisMortgagedatedasofDecember15,2002December23,2002Form8-K,Exhibit4.1,FileNo.1-30044.77AmerenAmerenIllinoisSupplementalIndenturedatedasofJune1,2006,toAmerenIllinoisMortgageforSeriesAAJune19,2006Form8-K,Exhibit4.13,FileNo.1-30044.78AmerenAmerenIllinoisSupplementalIndenturedatedasofNovember15,2007,toAmerenIllinoisMortgageforSeriesBBNovember20,2007Form8-K,Exhibit4.4,FileNo.1-30044.79AmerenAmerenIllinoisSupplementalIndenturedatedasofApril1,2008,toAmerenIllinoisMortgageforSeriesCCApril8,2008Form8-K,Exhibit4.9,FileNo.1-30044.80AmerenAmerenIllinoisSupplementalIndenturedatedasofOctober1,2008,toAmerenIllinoisMortgageforSeriesDDOctober23,2008Form8-K,Exhibit4.4,FileNo.1-30044.81AmerenAmerenIllinoisSupplementalIndenture,datedasofOctober1,2010,toAmerenIllinoisMortgageforSeriesCIPS-AA,CIPS-BBandCIPS-CCOctober7,2010Form8K,Exhibit4.9,FileNo.1-36724.82AmerenAmerenIllinoisIndenture,datedasofJune1,2006fromIP(predecessorininteresttoAmerenIllinois)toTheBankofNewYorkMellonTrustCompany,N.A.,assuccessortrustee(AmerenIllinoisIndenture)June19,2006Form8-K,Exhibit4.4,FileNo.1-3004 186 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:4.83AmerenAmerenIllinoisFirstSupplementalIndenture,datedasofOctober1,2010,totheAmeren IllinoisIndentureforSeriesCIPS-AA, CIPS-BBandCIPS-CCOctober7,2010Form8K,Exhibit4.5,FileNo.1-147564.84AmerenAmerenIllinoisSecondSupplementalIndenturetotheAmerenIllinoisIndenturedatedasofJuly21,2011September30,2011Form10-Q,Exhibit4.2,FileNo.1-36724.85AmerenAmerenIllinoisAmerenIllinoisIndentureCompanyOrder,datedJune14,2006,establishingthe6.25%SeniorSecuredNotesdue2016(includingtheglobalnote)June19,2006Form8-K,Exhibit4.7,FileNo.1-30044.86AmerenAmerenIllinoisAmerenIllinoisIndentureCompanyOrder,datedNovember15,2007,establishing6.125%SeniorSecuredNotesdue2017(includingtheglobalnote)November20,2007Form8-K,Exhibit4.2,FileNo.1-30044.87AmerenAmerenIllinoisAmerenIllinoisIndentureCompanyOrder,datedApril8,2008,establishing6.25%SeniorSecuredNotesdue2018(includingtheglobalnote)April8,2008Form8-K,Exhibit4.4,FileNo.1-30044.88AmerenAmerenIllinoisAmerenIllinoisIndentureCompanyOrderdatedOctober23,2008,establishing9.75%SeniorSecuredNotesdue2018(includingtheglobalnote)October23,2008Form8-K,Exhibit4.2,FileNo.1-30044.89Ameren GencoIndenturedatedasofNovember1,2000,fromGencotoTheBankofNewYorkMellonTrustCompany,N.A.,assuccessortrustee(GencoIndenture)Exhibit4.1,FileNo.333-565944.90Ameren GencoThirdSupplementalIndenturedatedasofJune1,2002,toGencoIndenture,relatingtoGencos7.95%SeniorNotes,SeriesEdue2032June30,2002Form10-Q,Exhibit4.1,FileNo.333-565944.91Ameren GencoFourthSupplementalIndenturedatedasofJanuary15,2003,toGencoIndenture,relatingtoGenco7.95%SeniorNotes,SeriesFdue20322002Form10-K,Exhibit4.5,FileNo.333-565944.92Ameren GencoFifthSupplementalIndenturedatedasofApril1,2008,toGencoIndenture,relatingtoGenco7.00%SeniorNotes,SeriesGdue 2018April9,2008Form8-K,Exhibit4.2,FileNo.333-565944.93Ameren GencoSixthSupplementalIndenture,datedasofJuly7,2008,toGencoIndenture,relatingtoGenco7.00%SeniorNotes,SeriesHdue 2018ExhibitNo.4.55,FileNo.333-1554164.94Ameren GencoSeventhSupplementalIndenture,datedasofNovember1,2009,toGencoIndenture,relatingtoGenco6.30%SeniorNotes,Seriesldue2020November17,2009Form8-K,Exhibit4.8,FileNo.333-56594MaterialContracts10.1Ameren GencoAmendedandRestatedPowerSupplyAgreement,datedMarch28,2008,betweenMarketingCompanyandGencoMarch28,2008Form8-K,Exhibit10.3,FileNo.1-1475610.2Ameren GencoFirstAmendmentdatedJanuary1,2010,toAmendedandRestatedPowerSupplyAgreement,datedMarch28,2008,betweenMarketingCompanyandGenco2009Form10-K,Exhibit10.2,FileNo.1-14756 187 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:10.3AmerenAmerenIllinoisUnilateralBorrowingAgreementbyandamongAmeren,IP(predecessorininterest toAmerenIllinois)andAmerenServices, datedasofSeptember30,2004October1,2004Form8-K,Exhibit10.3,FileNo.1-300410.4AmerenCompaniesThirdAmendedAmerenCorporationSystemUtilityMoneyPoolAgreement,asamendedSeptember30,2004October1,2004Form8-K,Exhibit10.2,FileNo.1-1475610.5Ameren GencoAmerenCorporationSystemAmendedandRestatedNon-RegulatedSubsidiaryMoneyPoolAgreement,datedMarch1,2008March31,2008Form10-Q,Exhibit10.1,FileNo.1-1475610.6AmerenAmerenMissouriCreditAgreement,datedasofSeptember10,2010,byandamongAmeren,AmerenMissouriandJPMorganChaseBank,N.A.,asagent,andthelenderspartythereto.September13,2010Form8-K,Exhibit10.1,FileNo.1-1475610.7Ameren GencoCreditAgreement,datedasofSeptember10,2010,byandamongAmeren,GencoandJPMorganChaseBank,N.A.,asagent,andthelenderspartythereto.September13,2010Form8-K,Exhibit10.2,FileNo.1-1475610.8AmerenAmerenIllinoisCreditAgreement,datedasofSeptember10,2010,byandamongAmeren,CIPS(nowAmerenIllinois),CILCOandIP(predecessorsininteresttoAmerenIllinois)andJPMorganChaseBank,N.A.,asagent,andthelenderspartythereto.September13,2010Form8-K,Exhibit10.3,FileNo.1-1475610.9Ameren*SummarySheetofAmerenCorporationNon-ManagementDirectorCompensationrevisedonAugust8,2008September30,2008Form10-Q,Exhibit10.1,FileNo.1-1475610.10AmerenCompanies*AmerensLong-TermIncentivePlanof 19981998Form10-K,Exhibit10.1,FileNo.1-1475610.11AmerenCompanies*FirstAmendmenttoAmerensLong-TermIncentivePlanof1998February16,2006Form8-K,Exhibit10.6,FileNo.1-1475610.12AmerenCompanies*FormofRestrictedStockAwardunderAmerensLong-TermIncentivePlanof 1998February14,2005Form8-K,Exhibit10.1,FileNo.1-1475610.13Ameren*AmerensDeferredCompensationPlanforMembersoftheBoardofDirectorsamendedandrestatedeffectiveJanuary1,2009,datedJune13,2008June30,2008Form10-Q,Exhibit10.3,FileNo.1-1475610.14AmerenCompanies*AmendmentdatedOctober12,2009,toAmerensDeferredCompensationPlanforMembersoftheBoardofDirectors,effectiveJanuary1,20102009Form10-K,Exhibit10.15,FileNo.1-1475610.15AmerenCompanies*AmendmentdatedOctober14,2010,toAmerensDeferredCompensationPlanforMembersoftheBoardofDirectors2010Form10-K,Exhibit10.15,FileNo.1-1475610.16AmerenCompanies*AmerensDeferredCompensationPlanasamendedandrestatedeffectiveJanuary1, 2010October14,2009Form8-K,Exhibit10.1,FileNo.1-1475610.17AmerenCompanies*AmendmentdatedOctober14,2010toAmerensDeferredCompensationPlan2010Form10-K,Exhibit10.17,FileNo.1-1475610.18AmerenCompanies*2010AmerenExecutiveIncentivePlanDecember17,2009Form8-K,Exhibit10.1,FileNo.1-1475610.19AmerenCompanies*2011AmerenExecutiveIncentivePlanDecember15,2010Form8-K,Exhibit10.1,FileNo.1-1475610.20AmerenCompanies*2012AmerenExecutiveIncentivePlanDecember14,2011Form8-K,Exhibit10.1,FileNo.1-14756 188 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:10.21AmerenCompanies*2010BaseSalaryTableforNamedExecutiveOfficers2009Form10-K,Exhibit10.29,FileNo.1-1475610.22AmerenCompanies*2011BaseSalaryTableforNamedExecutiveOfficers2010Form10-K,Exhibit10.21,FileNo.1-1475610.23AmerenCompanies*2012BaseSalaryTableforNamedExecutiveOfficers10.24AmerenCompanies*SecondAmendedandRestatedAmerenCorporationChangeofControlSeverance Plan2008Form10-K,Exhibit10.37,FileNo.1-1475610.25AmerenCompanies*FirstAmendmentdatedOctober12,2009,totheSecondAmendedandRestatedAmerenChangeofControlSeverancePlanOctober14,2009Form8-K,Exhibit10.2,FileNo.1-1475610.26AmerenCompanies*RevisedScheduleItoSecondAmendedandRestatedAmerenChangeofControlSeverancePlan,asamended10.27AmerenCompanies*Tableof2008TargetPerformanceShareUnitAwardsIssuedtoNamedExecutive OfficersFebruary14,2008Form8-K,Exhibit99.1,FileNo.1-1475610.28AmerenCompanies*Tableof2009TargetPerformanceShareUnitAwardsIssuedtoExecutiveOfficersMarch2,2009Form8-K,Exhibit99.1,FileNo.1-1475610.29AmerenCompanies*FormulaforDetermining2010TargetPerformanceShareUnitAwardstobeIssuedtoNamedExecutiveOfficersDecember17,2009Form8-K,Exhibit99.1,FileNo.1-1475610.30AmerenCompanies*FormulaforDetermining2011TargetPerformanceShareUnitAwardstobeIssuedtoNamedExecutiveOfficersDecember15,2010Form8-K,Exhibit99.1,FileNo.1-1475610.31AmerenCompanies*FormulaforDetermining2012TargetPerformanceShareUnitAwardstobeIssuedtoNamedExecutiveOfficersDecember14,2011Form8-K,Exhibit99.1,FileNo.1-1475610.32AmerenCompanies*AmerenCorporation2006OmnibusIncentiveCompensationPlanFebruary16,2006Form8-K,Exhibit10.3,FileNo.1-1475610.33AmerenCompanies*FormofPerformanceShareUnitAwardIssuedin2006-2008pursuantto2006OmnibusIncentiveCompensationPlanFebruary16,2006Form8-K,Exhibit10.4,FileNo.1-1475610.34AmerenCompanies*FormofPerformanceShareUnitforAwardIssuedin2009pursuantto2006OmnibusIncentiveCompensationPlanMarch2,2009Form8-K,Exhibit10.1,FileNo.1-1475610.35AmerenCompanies*FormofPerformanceShareUnitforAwardIssuedin2010pursuantto2006OmnibusIncentiveCompensationPlanDecember17,2009Form8-K,Exhibit10.2,FileNo.1-1475610.36AmerenCompanies*FormofPerformanceShareUnitforAwardtobeIssuedin2011pursuantto2006OmnibusIncentiveCompensation PlanDecember15,2010Form8-K,Exhibit10.2,FileNo.1-1475610.37AmerenCompanies*FormofPerformanceShareUnitAwardAgreementforAwardsIssuedin2012pursuantto2006OmnibusIncentiveCompensationPlanDecember14,2011Form8-K,Exhibit10.2,FileNo.1-1475610.38AmerenCompanies*PerformanceStockBonusAwardAgreement,datedMarch1,2011,betweenAmerenandAdamC.HeflinMarch31,2011Form10-Q,Exhibit10.1,FileNo.1-1475610.39AmerenCompanies*AmerenSupplementalRetirementPlanamendedandrestatedeffectiveJanuary1,2008,datedJune13,2008June30,2008Form10-Q,Exhibit10.1,FileNo.1-14756 189 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:10.40AmerenCompanies*FirstAmendmenttoamendedandrestatedAmerenSupplementalRetirementPlan datedOctober24,20082008Form10-K,Exhibit10.44,FileNo.1-1475610.41AmerenAmerenIllinois*CILCOExecutiveDeferralPlanasamendedeffectiveAugust15,19991999Form10-K,Exhibit10,FileNo.1-273210.42AmerenAmerenIllinois*CILCOExecutiveDeferralPlanIIasamendedeffectiveApril1,19991999Form10-K,Exhibit10(a),FileNo.1-273210.43AmerenAmerenIllinois*CILCORestructuredExecutiveDeferralPlan(approvedAugust15,1999)1999Form10-K,Exhibit10(e),FileNo.1-2732Statementre:ComputationofRatios12.1AmerenAmerensStatementofComputationofRatioofEarningstoFixedCharges12.2AmerenMissouriAmerenMissourisStatementofComputationofRatioofEarningstoFixedChargesandCombinedFixedChargesandPreferredStockDividendRequirements12.3AmerenIllinoisAmerenIllinoisStatementofComputationofRatioofEarningstoFixedChargesandCombinedFixedChargesandPreferredStockDividendRequirements12.4GencoGencosStatementofComputationofRatioofEarningstoFixedChargesCodeofEthics14.1AmerenCompaniesCodeofEthicsamendedasofJune11, 2004June30,2004Form10-Q,Exhibit14.1,FileNo.1-14756SubsidiariesoftheRegistrant21.1AmerenCompaniesSubsidiariesofAmerenConsentofExpertsandCounsel23.1AmerenConsentofIndependentRegisteredPublicAccountingFirmwithrespecttoAmerenPowerofAttorney24.1AmerenPowerofAttorneywithrespecttoAmeren24.2AmerenMissouriPowerofAttorneywithrespecttoAmeren Missouri24.3AmerenIllinoisPowerofAttorneywithrespecttoAmeren Illinois24.4GencoPowerofAttorneywithrespecttoGencoRule13a-14(a)/15d-14(a)Certifications31.1AmerenRule13a-14(a)/15d-14(a)CertificationofPrincipalExecutiveOfficerofAmeren31.2AmerenRule13a-14(a)/15d-14(a)CertificationofPrincipalFinancialOfficerofAmeren31.3AmerenMissouriRule13a-14(a)/15d-14(a)CertificationofPrincipalExecutiveOfficerofAmeren Missouri31.4AmerenMissouriRule13a-14(a)/15d-14(a)CertificationofPrincipalFinancialOfficerofAmeren Missouri31.5AmerenIllinoisRule13a-14(a)/15d-14(a)CertificationofPrincipalExecutiveOfficerofAmeren Illinois31.6AmerenIllinoisRule13a-14(a)/15d-14(a)CertificationofPrincipalFinancialOfficerofAmerenIllinois 190 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:31.7GencoRule13a-14(a)/15d-14(a)CertificationofPrincipalExecutiveOfficerofGenco31.8GencoRule13a-14(a)/15d-14(a)CertificationofPrincipalFinancialOfficerofGencoSection1350Certifications32.1AmerenSection1350CertificationofPrincipalExecutiveOfficerandPrincipalFinancialOfficerofAmeren32.2AmerenMissouriSection1350CertificationofPrincipalExecutiveOfficerandPrincipalFinancialOfficerofAmerenMissouri32.3AmerenIllinoisSection1350CertificationofPrincipalExecutiveOfficerandPrincipalFinancialOfficerofAmerenIllinois32.4GencoSection1350CertificationofPrincipalExecutiveOfficerandPrincipalFinancialOfficerofGencoAdditionalExhibits99.1AmerenAmendedandRestatedPowerSupplyAgreement,datedMarch28,2008,betweenMarketingCompanyandAERGMarch28,2008Form8-K,Exhibit99.1,FileNo.1-1475699.2AmerenFirstAmendmentdatedJanuary1,2010,toAmendedandRestatedPowerSupplyAgreementdatedMarch28,2008,betweenMarketingCompanyandAERG2009Form10-K,Exhibit99.2,FileNo.1-14756InteractiveDataFile101.INS**AmerenCompaniesXBRLInstanceDocument101.SCH**AmerenCompaniesXBRLTaxonomyExtensionSchema Document101.CAL**AmerenCompaniesXBRLTaxonomyExtensionCalculationLinkbaseDocument101.LAB**AmerenCompaniesXBRLTaxonomyExtensionLabelLinkbase Document101.PRE**AmerenCompaniesXBRLTaxonomyExtensionPresentationLinkbaseDocument101.DEF**AmerenCompaniesXBRLTaxonomyExtensionDefinition DocumentThefilenumberreferencesfortheAmerenCompaniesfilingswiththeSECare:Ameren,1-14756;AmerenMissouri,1-2967;AmerenIllinois,1-3672;andGenco,333-56594.*Compensatoryplanorarrangement.
- AttachedasExhibit101tothisreportisthefollowingfinancialinformationforeachoftheAmerenCompaniesAnnualReportonForm10-KfortheyearendedDecember31,2011,formattedinXBRL(eXtensibleBusinessReportingLanguage):
(i)theConsolidatedStatementofIncomefortheyearsendedDecember31,2011,2010,and2009,(ii)theConsolidated BalanceSheetatDecember31,2011,andDecember31,2010,(iii)theConsolidatedStatementofCashFlowsfortheyears endedDecember31,2011,2010,and2009,(iv)theConsolidatedStatementofStockholdersEquityfortheyearsended December31,2011,2010,and2009,and(v)theCombinedNotestotheFinancialStatementsfortheyearended December31,2011.ForAmerenMissouri,AmerenIllinois,andGenco,theseexhibitsaredeemedfurnishedandnotfiled pursuanttoRule406TofRegulationS-T.EachregistrantherebyundertakestofurnishtotheSECuponrequestacopyofanylong-termdebtinstrumentnotlistedabovethatsuchregistranthasnotfiledasanexhibitpursuanttotheexemptionprovidedbyItem601(b)(4)(iii)(A)of RegulationS-K.
191 Exhibit31.1RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALEXECUTIVEOFFICEROFAMERENCORPORATION(requiredbySection302oftheSarbanes-OxleyActof2002)I,ThomasR.Voss,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2011,ofAmerenCorporation; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade, notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.TheregistrantsothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,including itsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrantsdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrantsinternalcontroloverfinancialreportingthatoccurredduringtheregistrantsmostrecentfiscalquarter(theregistrantsfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrants internalcontroloverfinancialreporting;and5.TheregistrantsothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrantsauditorsandtheauditcommitteeoftheregistrantsboardofdirectors(orpersons performingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrantsabilitytorecord,process, summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrantsinternalcontroloverfinancialreporting.Date:February28,2012/s/ThomasR.VossThomasR.VossChairman,PresidentandChiefExecutiveOfficer (PrincipalExecutiveOfficer)
Exhibit31.2RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALFINANCIALOFFICEROFAMERENCORPORATION(requiredbySection302oftheSarbanes-OxleyActof2002)I,MartinJ.Lyons,Jr.,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2011,ofAmerenCorporation; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade, notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.TheregistrantsothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,including itsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrantsdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrantsinternalcontroloverfinancialreportingthatoccurredduringtheregistrantsmostrecentfiscalquarter(theregistrantsfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrants internalcontroloverfinancialreporting;and5.TheregistrantsothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrantsauditorsandtheauditcommitteeoftheregistrantsboardofdirectors(orpersons performingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrantsabilitytorecord,process, summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrantsinternalcontroloverfinancialreporting.Date:February28,2012/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.SeniorVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit31.3RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALEXECUTIVEOFFICEROFUNIONELECTRICCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,WarnerL.Baxter,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2011,ofUnionElectricCompany; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade, notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.TheregistrantsothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,including itsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrantsdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrantsinternalcontroloverfinancialreportingthatoccurredduringtheregistrantsmostrecentfiscalquarter(theregistrantsfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrants internalcontroloverfinancialreporting;and5.TheregistrantsothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrantsauditorsandtheauditcommitteeoftheregistrantsboardofdirectors(orpersons performingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrantsabilitytorecord,process, summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrantsinternalcontroloverfinancialreporting.Date:February28,2012/s/WarnerL.BaxterWarnerL.BaxterChairman,PresidentandChiefExecutiveOfficer (PrincipalExecutiveOfficer)
Exhibit31.4RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALFINANCIALOFFICEROFUNIONELECTRICCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,MartinJ.Lyons,Jr.,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2011,ofUnionElectricCompany; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade, notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.TheregistrantsothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,including itsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrantsdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrantsinternalcontroloverfinancialreportingthatoccurredduringtheregistrantsmostrecentfiscalquarter(theregistrantsfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrants internalcontroloverfinancialreporting;and5.TheregistrantsothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrantsauditorsandtheauditcommitteeoftheregistrantsboardofdirectors(orpersons performingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrantsabilitytorecord,process, summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrantsinternalcontroloverfinancialreporting.Date:February28,2012/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.SeniorVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit31.5RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALEXECUTIVEOFFICEROFAMERENILLINOISCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,ScottA.Cisel,certifythat:
1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2011,ofAmerenIllinoisCompany; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade, notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.TheregistrantsothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,including itsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrantsdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrantsinternalcontroloverfinancialreportingthatoccurredduringtheregistrantsmostrecentfiscalquarter(theregistrantsfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrants internalcontroloverfinancialreporting;and5.TheregistrantsothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrantsauditorsandtheauditcommitteeoftheregistrantsboardofdirectors(orpersons performingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrantsabilitytorecord,process, summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrantsinternalcontroloverfinancialreporting.Date:February28,2012/s/ScottA.CiselScottA.CiselChairman,PresidentandChiefExecutiveOfficer (PrincipalExecutiveOfficer)
Exhibit31.6RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALFINANCIALOFFICEROFAMERENILLINOISCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,MartinJ.Lyons,Jr.,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2011,ofAmerenIllinoisCompany; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade, notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.TheregistrantsothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,including itsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrantsdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrantsinternalcontroloverfinancialreportingthatoccurredduringtheregistrantsmostrecentfiscalquarter(theregistrantsfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrants internalcontroloverfinancialreporting;and5.TheregistrantsothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrantsauditorsandtheauditcommitteeoftheregistrantsboardofdirectors(orpersons performingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrantsabilitytorecord,process, summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrantsinternalcontroloverfinancialreporting.Date:February28,2012/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.SeniorVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit31.7RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALEXECUTIVEOFFICEROFAMERENENERGYGENERATINGCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,StevenR.Sullivan,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2011,ofAmerenEnergyGenerating Company;2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade, notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.TheregistrantsothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,including itsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrantsdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrantsinternalcontroloverfinancialreportingthatoccurredduringtheregistrantsmostrecentfiscalquarter(theregistrantsfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrants internalcontroloverfinancialreporting;and5.TheregistrantsothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrantsauditorsandtheauditcommitteeoftheregistrantsboardofdirectors(orpersons performingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrantsabilitytorecord,process, summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrantsinternalcontroloverfinancialreporting.Date:February28,2012/s/StevenR.SullivanStevenR.SullivanChairmanandPresident (PrincipalExecutiveOfficer)
Exhibit31.8RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALFINANCIALOFFICEROFAMERENENERGYGENERATINGCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,MartinJ.Lyons,Jr.,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2011,ofAmerenEnergyGenerating Company;2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade, notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.TheregistrantsothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,including itsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrantsdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrantsinternalcontroloverfinancialreportingthatoccurredduringtheregistrantsmostrecentfiscalquarter(theregistrantsfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrants internalcontroloverfinancialreporting;and5.TheregistrantsothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrantsauditorsandtheauditcommitteeoftheregistrantsboardofdirectors(orpersons performingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrantsabilitytorecord,process, summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrantsinternalcontroloverfinancialreporting.Date:February28,2012/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.SeniorVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit32.1SECTION1350CERTIFICATIONOFAMERENCORPORATION(requiredbySection906oftheSarbanes-OxleyActof2002)InconnectionwiththereportonForm10-KforthefiscalyearendedDecember31,2011,ofAmerenCorporation(theRegistrant)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:February28,2012/s/ThomasR.VossThomasR.VossChairman,PresidentandChiefExecutiveOfficer (PrincipalExecutiveOfficer)/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.SeniorVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit32.2SECTION1350CERTIFICATIONOFUNIONELECTRICCOMPANY(requiredbySection906oftheSarbanes-OxleyActof2002)InconnectionwiththereportonForm10-KforthefiscalyearendedDecember31,2011,ofUnionElectricCompany(theRegistrant)asfiledbytheRegistrantwiththeSecuritiesandExchangeCommissiononthedatehereof(theForm10-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:February28,2012/s/WarnerL.BaxterWarnerL.BaxterChairman,PresidentandChiefExecutiveOfficer (PrincipalExecutiveOfficer)/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.SeniorVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit32.3SECTION1350CERTIFICATIONOFAMERENILLINOISCOMPANY(requiredbySection906oftheSarbanes-OxleyActof2002)InconnectionwiththereportonForm10-KforthefiscalyearendedDecember31,2011,ofAmerenIllinoisCompany(theRegistrant)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:February28,2012/s/ScottA.CiselScottA.CiselChairman,PresidentandChiefExecutiveOfficer (PrincipalExecutiveOfficer)/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.SeniorVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit32.4SECTION1350CERTIFICATIONOFAMERENENERGYGENERATINGCOMPANY(requiredbySection906oftheSarbanes-OxleyActof2002)InconnectionwiththereportonForm10-KforthefiscalyearendedDecember31,2011,ofAmerenEnergyGeneratingCompany(theRegistrant)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:February28,2012/s/StevenR.SullivanStevenR.SullivanChairmanandPresident (PrincipalExecutiveOfficer)/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.SeniorVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Investor InformationCOMMON 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 63,684 on December 31, 2011. The following table provides the closing price ranges and dividends paid per Ameren common share during
each quarter of 2011 and 2010.
AEE 2011 DividendsQuarter Ended High Low Close PaidMarch 31 $29.14 $26.46 $28.07 38 12 ¢June 30 30.14 27.78 28.84 38 12September 30 31.44 25.55 29.77 38 12December 31 34.11 27.98 33.13 40 AEE 2010 DividendsQuarter Ended High Low Close PaidMarch 31 $28.27 $24.14 $26.08 38 12¢June 30 26.92 23.09 23.77 38 12September 30 28.99 23.45 28.40 38 12December 31 29.89 27.65 28.19 38 12 ANNUAL MEETINGThe annual meeting of Ameren Corporation shareholders will convene at 9 a.m. (Central Time), Tuesday, April 24, 2012, at Powell Symphony Hall, 718 North Grand Boulevard, St. Louis, Missouri. 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 to their bank accounts to purchase Ameren common stock, totaling up to
$120,000 annually,* reinvest their dividends in Ameren common stock (minimum dividend reinvestment requirement of 10% as of January 1, 2012) or receive Ameren dividends in cash and
- place Ameren common stock certificates 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 DIVIDENDS All 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 DOCUMENTSAmeren makes available, free of charge through its website (www.ameren.com), the charters of the board of directors audit and risk committee, human resources committee, nominating and corporate governance committee, nuclear oversight and environmental committee, and finance 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 its Code of Ethics for principal executive and senior financial officers. These documents are also available in print, free of charge upon written request, from the Office 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 officer and chief financial officer certifications required to be filed with the Securities and
Exchange Commission therewith.
ONLINE STOCK ACCOUNT ACCESSAmerens website (www.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 8:00 a.m. to 4:00 p.m. (Central Time).
Please write or call:Ameren Services Company, Investor Services P.O. Box 66887 St. Louis, MO 63166-6887 314-554-3502 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.
Ameren Corporation One Ameren Plaza 1901 Chouteau Avenue
St. Louis, MO 63103
314-621-3222 4 0 7 5 0_P B_.i n d d 2 2/2 7/1 2 1: 1 8 P M P.O. Box 66149 St. Louis, MO 63166-6149 www.ameren.com 4 0 7 5 0_P B_.i n d d 1 2/2 7/1 2 1: 1 7 P M