ULNRC-06272, Callaway, Unit 1 - Enclosure 4, 2015 Ameren 2014 Annual Report (Filed 03/02/2015 Includes 2014 Form 10-K)
Text
Enclosure 4 to ULNRC-06272 2015 ANNUAL REPORT (filed 3/02/2015 includes 2014 FORM 10-K)
Powering Grow th2014 ANNUAL REPORT AMEREN l 2014 Annual Report and Form 10-K FINANCIAL HIGHLIGHTS Ameren Consolidated 2014 2013 2012 In millions, except per share amounts and as noted Years ended Dec. 31 Results of Operations Operating revenues
$6,053$5,838$5,781 Operating expenses
$4,799$4,654$4,593 Operating income
$1,254$1,184$1,188 Net income attributable to Ameren Corporation from continuing operations
$587$512$516 Common Stock Data Continuing operations earnings per diluted share
$2.40$2.10$2.13 Dividends per common share
$1.61$1.60$1.60 Annualized dividend yield (year-end) 3.6%4.4%5.2%Market price per common share (year-end closing)
$46.13$36.16$30.72 Shares outstanding (weighted average) 242.6 242.6 242.6 Total market value of common shares (year-end)
$11,191$8,772$7,453 Book value per common share
$27.67$26.97$27.27 Balance Sheet Data Property and plant, net
$17,424$16,205$15,348 Total assets
$22,676$21,042$22,230 Long-term debt obligations, excluding current maturities
$6,120$5,504$5,802 Capitalization Ratios Common equity 48.7%50.1%52.0%Preferred stock 1.0%1.1%1.1%Debt, net of cash 50.3%48.8%46.9%Utility Operating Data Electric sales (kilowatt-hours) 80,022 80,057 81,680 Natural gas sales (decatherms in thousands) 202,810 195,266 172,647 Generation output (kilowatt-hours) 43,474 43,213 44,658 Electric customers 2.4 2.4 2.4 Natural gas customers 0.9 0.9 0.9 Ameren is committed to powering the quality of life for our customers and powering growth for our shareholders and the communities we serve. 01Powering Growth 02About Ameren 04Letter from the CEO 09Investing for Customers and Shareholders 10Cleaner and More Dependable Energy 13Relentless Improvement 14Ameren's Executive Leadership Team 16Officers and Board of Directors CONTENTSAMEREN CORPORATION2014 ANNUAL REPORT 1
About Ameren Ameren Corporation is headquartered in St.
Louis. We pride ourselves on operating safely and maintaining ~nancial strength while providing reliable, reasonably priced energy in an environmentally responsible fashion.
COLLINSVILLE ST. LOUISCorporate HeadquartersSubsidiary
Headquarters Electric Service Territory Electric &
Natural Gas
Territory AMEREN MISSOURI This integrated utility owns a mix of energy centers with 10,200 megawatts of electric generation capacity. It is the largest electric utility and second
largest gas distributor in Missouri.
AMEREN ILLINOIS This delivery-only utility is the second largest distributor of electricity and third largest distributor of natural gas in Illinois.AMEREN TRANSMISSION COMPANY OF ILLINOIS This subsidiary is dedicated to electric transmission infrastructure investment and expanding Ameren's already
robust system of high-voltage lines.
Transmission Line ProjectsSpoon RiverIllinois RiversMark Twain 2 2.4MILLION ELECTRIC CUSTOMERS FORTUNE 500 COMPANY100+YEARS OF UNINTERRUPTED CASH DIVIDEND PAYMENTS 8,500 CO-WORKERS AMEREN MISSOURI ł Demonstrating a commitment to cleaner energy, in November the O'Fallon Renewable Energy Center came online.
Ameren Missouri also invested millions of dollars over the last few years replacing obsolete substations that power critical institutions, including medical centers, major employers, universities and police
and fire stations.ł Ameren Missouri filed an electric rate adjustment request in July for cleaner energy and dependability upgrades to critical infrastructure. The filing also addressed a significant increase in fuel costs and investments in Missouri's
renewable energy.ł Missouri's largest energy center, Labadie, installed additional environmental controls to enhance air quality while ensuring this center can continue to supply affordable around-the-clock power. In August, a major industry consultant recognized Labadie as the top-performing large unit
coal-fired energy center in the nation.
AMEREN ILLINOIS
ł As part of the Energy Infrastructure Modernization Act, Ameren Illinois placed
213 reliability projects into service in 2014 with a total investment of $83.5 million.
As part of its commitment to smarter grid upgrades, Ameren Illinois exceeded its
~rst-year goal for the Advanced Metering Infrastructure Project with the installation of almost 47,000 advanced electric and
26,000 upgraded gas meters.ł Ameren Illinois exceeded performance metrics related to reductions in frequency and duration of customer interruptions; number of customers exceeding reliability targets; number of estimated electric meters; consumption on inactive meters;
and uncollectible expense.ł Ameren Illinois received a constructive December electric delivery rate decision demonstrating that Illinois' formulaic rate
framework is working as intended.AMEREN TRANSMISSION COMPANY OF ILLINOISł The Illinois Rivers Transmission Project, spanning the Mississippi River and central Illinois, saw construction begin on tower foundations and on the majority of planned substations. It is expected to be completed in 2019. This is Ameren's largest single
construction project since the early 1980s.ł The Spoon River Transmission Project in northwest Illinois is awaiting approval of its Certificate of Public Convenience and Necessity from the Illinois Commerce
Commission, which is expected in 2015.ł Ameren Transmission Company of Illinois gathered public input on plans for another regional project, Mark Twain, in northeast Missouri. Both Spoon River and Mark Twain are expected to be
completed in 2018.
900,000 64,000SQUARE-MILE SERVICE TERRITORYNATURAL GAS CUSTOMERS 2014 HIGHLIGHTSAMEREN CORPORATION2014 ANNUAL REPORT 3
My FellowShareholdersMy FellowShareholdersMy Fellow LETTER FROM THE CEO WARNER L. BAXTERChairman, President & CEO 4
our vision & missionOver the last year, I have visited with a large number of Ameren co-workers in Missouri and Illinois - and many stakeholders in the communities we serve - to discuss Ameren's strategy to deliver value to our customers and shareholders. Key aspects of our discussions focus not only on "what" we do (our strategy), but also on "why" we do what we do. Simply put, Ameren's vision of Leading the Way to a Secure Energy Future and our mission To Power the Quality of Life describe "why" we do the work we do each and every day. In addition, our vision and mission focus our strategy and inspire excellence and innovation among our co-workers for the benefit of our stakeholders.It is a privilege and honor to write to you for my ~rst time as chairman, president and chief executive of~cer of Ameren Corporation, following in the footsteps of my predecessor and a terri~c leader, Tom Voss.I am pleased to report that Ameren continues to execute its well-defined strategy to create long-term value for you, our shareholders, as well as for our 2.4 million electric and 900,000 natural gas customers in more than 1,700 communities in Missouri and Illinois. We completed several critical projects that will produce cleaner and more dependable energy for millions of customers who depend on us. In addition, our reliability and electric rates remained among the best in the country. Importantly, these actions are powering earnings growth. In 2014, we achieved strong earnings growth that was among the best in the industry, and we also increased our dividend. In addition, we remain on target to deliver solid earnings growth in the future. These outcomes were the result of a focused and cohesive team effort. However, I want to start by discussing some key principles that guide us at Ameren.32.7%TOTAL SHAREHOLDER RETURN IN 201414.3% EARNINGS PER SHARE GROWTH IN 20142.5% DIVIDEND INCREASEAMEREN CORPORATION2014 ANNUAL REPORT 5
In 2014, Ameren successfully executed key aspects of our strategy under each core pillar. Under our first core pillar, growing amounts of discretionary capital were invested in Federal Energy Regulatory Commission-regulated electric transmission and Illinois electric and natural gas delivery services. These businesses operate under modern, constructive regulatory frameworks that allow for fair, predictable and timely recovery of operating costs and infrastructure investments made to better serve our customers. Other key aspects of this strategy include managing costs wisely, successfully managing and completing key energy infrastructure projects, and achieving constructive rate case outcomes. Examples of how we executed this strategy are on page 3.Under our second core pillar, several key events took place in 2014. In December, the Illinois legislature overwhelmingly passed legislation that extended the constructive formulaic electric rates framework by two years through 2019.
That legislation has been submitted to Governor Rauner. In addition, Ameren was very active in advocating for responsible energy policies at the federal level, notably in the environmental area.
In particular - working with key industry leaders, policymakers and stakeholders throughout Missouri, Illinois and the country - we raised concerns over the impact on customers' rates and reliability associated with the Environmental Protection Agency's (EPA) Clean Power Plan. We offered constructive solutions that not only would achieve the final greenhouse gas emissions target proposed by the EPA, but also would significantly mitigate the impact on customers' rates and reduce reliability risks associated with this proposal.
The EPA is expected to issue its final rule in 2015.Several steps were taken under our third core pillar in 2014. In Missouri, we announced our Integrated Resource Plan to transition to a cleaner and more fuel-diverse generation portfolio over the next 20 years. Our plan includes meaningful incremental investments in renewable and natural gas-fired generation, retirement of about a third of our coal-fired generation capacity at the end of its useful life, and offering robust energy efficiency programs that benefit customers and the environment under Missouri's constructive regulatory framework for such programs. I am pleased to report that our initial three-year energy efficiency program in Missouri is on track to exceed its goals. In 2014, we also invested more than $600 million in transmission to improve the reliability and ef~ciency of our system, and we are aggressively competing for future transmission investment opportunities. These actions will position us to "power growth" in our businesses with continued investments in energy infrastructure for the bene~t of customers and shareholders.
OUR STRATEGYAmeren's strategy is to invest in rate-regulated energy infrastructure which, when coupled with relentlessly improving operating performance and advocating for responsible energy policies, will deliver superior growth in shareholder and customer value. I strongly believe that the sustained execution of this strategy will enable Ameren to be a clear leader in the utility industry in terms of customer satisfaction, operating and ~nancial performance, and thought leadership.
THE EXECUTION OF OUR STRATEGY IS SUPPORTED BY THREE CORE PILLARS:Investing in and operating our businesses in a manner consistent with existing
regulatory frameworksSeeking to enhance regulatory frameworks and advocating for responsible energy policies at
the federal and state levelsCreating and capitalizing on opportunities for investment for the benefit of customers
and shareholders 6
STRONG PERFORMANCEAs I noted at the outset of my letter, execution of our well-de~ned strategy has delivered strong operating results. We improved our overall customer satisfaction in 2014 by delivering solid reliability at a reasonable price, enhancing our customer communications and delivering on our promises of job creation associated with investments in Illinois. From a ~nancial perspective, we achieved a total shareholder return of 32.7% in 2014 and, in February 2015, reaf~rmed our earnings growth from continuing operations guidance of 7% to 10% compounded annually from 2013 to 2018. We also achieved earnings per share growth from continuing operations of 14.3% in 2014 over 2013. And in October, we announced an increase in our quarterly cash dividend to 41 cents per share for a new annualized rate of $1.64 per share, a 2.5% increase. This action reflects con~dence in the long-term outlook for our business. The bottom line is that I am pleased with our performance in 2014, but as I often tell my co-workers, we cannot be satis~ed. Great companies continue to move forward in executing their strategies and delivering sustainable, superior results for the bene~t of all stakeholders. OUR CO-WORKERS AND OUR VALUES Execution all comes down to our people. I am fortunate to lead a group of dedicated, bright and innovative co-workers who embrace our vision, our mission and our strategy. Just as important, they fully embrace a workplace culture that focuses on safety and our long-held core values. These core values, listed on the left, will continue to guide us in the years ahead.In closing, I strongly believe that our strategic plan has set Ameren on a path to power growth now and in the future. Our team is inspired to be a leader in customer satisfaction, operating and financial performance, and thought leadership. Thank you for your trust in me and my co-workers.
Sincerely, WARNER L. BAXTERChairman, President &
Chief Executive Officer Ameren Corporation March 1, 2015PLEASE JOIN US AT THE ANNUAL MEETING SAINT LOUIS ART MUSEUM One Fine Arts Drive, Forest Park St. Louis, MissouriINTEGRITY Do the right thingRESPECT Value othersTEAMWORK Work together ACCOUNTABILITY Own your actions STEWARDSHIP Leave it betterCOMMITMENT TO EXCELLENCE The will to win our values april 23 10:30 A.M.AMEREN CORPORATION2014 ANNUAL REPORT 7
Dehydration towers, like this one at Lincoln Storage Field in Lincoln, Ill.,
ensure that pipeline-quality natural
gas is safely and reliably delivered
to customers. Ameren Illinois is
investing about $400 million over
10 years to strengthen the integrity
of its gas delivery system - part
of a larger $3.5 billion plan to
build a next-generation energy
delivery system and create jobs
in central and southern Illinois.
GROWING RATE BASEAmeren's capital investment plans are expected to translate into overall rate base growth of about 6%, compounded annually from 2014 through 2019. We expect this to lead to solid growth in earnings as well.
6%8 POWERING GROWTHInvesting for Customers and
ShareholdersThe strategic investments Ameren makes in regulated infrastructure - reliability upgrades, environmental enhancements and service improvements for homes and businesses - create value for customers and shareholders alike. FERC-REGULATED ELECTRIC TRANSMISSIONILLINOIS ELECTRIC &
NATURAL GAS DELIVERYMISSOURI GENERATION
& DELIVERYPLANNED CAPITAL INVESTMENT ALLOCATION2015-2019 2.9 BILLION$3.7 BILLION$2.3 BILLION$AMEREN CORPORATION2014 ANNUAL REPORT 9
POWERING GROWTHCleaner and More Dependable EnergyAmeren has a strong history of renewable energy investments that extends back more than a century. Now we are finding innovative ways to add additional cleaner resources to the mix. In Missouri and Illinois, we are continually updating electric and natural gas infrastructure to provide service that our customers can count on.
1.1 0.9 1.3 1.5 2002 2004 2006 2008 2010 2012 2014 Outage frequency BETTER IMPROVING RELIABILITYwith fewer outagesAmeren's electric distribution reliability performance has improved, as measured by the System Average Interruption Frequency Index. This important benchmark shows how we have reduced the total number of interruptions per customer served per year.
10 Solar power became part of Ameren Missouri's generation mix when the O'Fallon Renewable Energy Center went online in November 2014. This facility - the largest investor-owned, utility-scale solar center in the state - features more than 19,000
solar panels covering over 19 acres.
AMEREN CORPORATION2014 ANNUAL REPORT 11 METERING UPGRADES Ameren Illinois' electric and gas delivery service modernization efforts continued in earnest during 2014. In December, the utility hit two important milestones: installing the 40,000th advanced electric meter and upgrading the 25,000th natural gas meter. These next-generation metering updates will help detect and isolate outages at homes and businesses, so service can be restored more promptly.
MEETING CUSTOMER NEEDS To meet demand growth and improve electric transmission system reliability, Ameren Illinois in 2014 expanded the footprint of its Turkey Hill substation in Belleville. The new technology and equipment are designed to meet the evolving demands of our customers. In addition, Ameren Illinois will be upgrading a 25-mile transmission line that will allow the company to move 2.5 times as much power between Turkey Hill and a Cahokia, Ill., substation.
CARBON-FREE, RELIABLE POWER Dec. 19, 2014, brought the 30th anniversary of Callaway Energy Center. This facility in Fulton, Mo., provides enough carbon-free power to supply 20% of the electricity needed by our Missouri customers. Callaway also successfully completed refueling and a number of maintenance activities in 2014, including installation of a new reactor vessel head (above). The original had been in service since 1984. Approximately 800 men and women ensure Callaway's continued safe and reliable operation, and they make it one of the top-rated nuclear facilities in the nation.
12 POWERING GROWTHRelentless ImprovementAmeren co-workers are committed to enhancing our communities and to relentlessly improving all aspects of operations - especially when it comes to safety. Combined with disciplined ~nancial management, this focus on operational excellence helps us provide reasonably priced energy to power our region's economy.
In June 2014, members of Ameren's Military-Veteran
employee resource group joined
the Department of Defense
to honor local war heroes.
Ameren and our co-workers
are committed to improving
the cities and towns we
serve. Through volunteerism
and charitable giving, we are
building stronger communities.
REASONABLY PRICED ELECTRICITY
¢/KWH 0 AMEREN IL AMEREN MO CHICAGO MINNEAPOLIS U.S. AVERAGE DETROIT BOSTON NEW YORK 8.19 9.97 11.14 12.34 12.56 14.95 17.59 28.715 10 15 25 20 The electricity delivered by Ameren Missouri and Ameren Illinois remains competitively priced.
This is important for low- and ~xed-income customers and for businesses seeking to open or expand.AVERAGE RESIDENTIAL ELECTRIC PRICES (Source: 2014 Summer Edison Electric Institute "Typical Bills and Average Rates Report" for year ending June 2014)
IMPROVING LONG-TERM SAFETY PERFORMANCE 0 50 100 150 2002 2004 2006 2008 2010 2012 2014 Lost Workday Away CasesSafety is the foundation for everything Ameren does. The company continues to focus on improving its safety performance.
1.1 0.9 1.3 1.5 2002 2004 2006 2008 2010 2012 2014 Outage frequency BETTER 13AMEREN CORPORATION2014 ANNUAL REPORT Leading the Way AMEREN'S EXECUTIVE LEADERSHIP TEAM WARNER L. BAXTER Chairman, President and Chief Executive Of~cer, Ameren CorporationMAUREEN A. BORKOWSKI President, Ameren Transmission
Company and Ameren
Transmission Company of Illinois DANIEL F. COLE President,
Ameren ServicesMICHAEL L. MOEHN President, Ameren Missouri RICHARD J. MARK President,
Ameren Illinois 14 Leading the WayMARTIN J. LYONS, JR.
Executive Vice President and Chief Financial Of~cer, Ameren CorporationFADI M. DIYA Senior Vice President and Chief
Nuclear Of~cer, Ameren Missouri MARY P. HEGER Vice President and Chief Information
Of~cer, Ameren Services MARK C. LINDGREN Vice President and Chief Human Resources Of~cer, Ameren Services MARK C. BIRK Senior Vice President, Corporate Planning and Oversight, Ameren ServicesGREGORY L. NELSON Senior Vice President, General Counsel and Secretary, Ameren CorporationAMEREN CORPORATION2014 ANNUAL REPORT 15 AMEREN CORPORATION AND SUBSIDIARIES OFFICERS Ajay K. Arora*
Vice President, Environmental Services and Generation Resource Planning, Ameren Services Lynn M. Barnes*
Vice President, Business Planning and Controller, Ameren Missouri S. Mark Brawley Vice President and Controller, Ameren Corporation Kendall D. Coyne*
Vice President, Tax, Ameren Services Kevin A. DeGraw*
Vice President, Corporate Operations Oversight and Continuous Improvement, Ameren Services Scott A. Glaeser*
Vice President, Gas Operations and Technical Development, Ameren Illinois Sharon Harvey Davis*
Vice President and Chief Diversity Of~cer, Ameren Services Timothy E. Herrmann*
Vice President, Engineering, Callaway Energy Center, Ameren Missouri Christopher A. Iselin*
Senior Vice President, Power Operations and Energy Management, Ameren Missouri Stephen M. Kidwell*
Vice President, Corporate Planning, Ameren Services Geralynn M. Lord*
Assistant Vice President, Corporate Communications, Ameren Services Ryan J. Martin Assistant Vice President and Treasurer, Ameren Corporation Michael G. Mueller*
Vice President, Energy Management and Trading, Ameren Missouri Craig D. Nelson*
Senior Vice President, Regulatory Affairs and
Financial Services, Ameren Illinois David W. Neterer*
Vice President, Nuclear Development, Callaway Energy Center, Ameren Missouri Stan E. Ogden*
Vice President, Customer Service and Metering Operations, Ameren Illinois Tara K. Oglesby*
Assistant Vice President, Customer Experience, Ameren Missouri Ronald D. Pate*
Senior Vice President, Operations and Technical Services, Ameren Illinois Joseph M. Power*
Vice President, Federal Legislative and Regulatory Affairs, Ameren Services Shawn E. Schukar*
Senior Vice President, Transmission Business Development, Ameren Transmission Company and Ameren Transmission Company of Illinois Theresa A. Shaw Vice President, Internal Audit, Ameren Corporation James A. Sobule*
Vice President and Deputy General Counsel, Ameren Services Bruce A. Steinke Senior Vice President, Finance and Chief Accounting Of~cer, Ameren Corporation David N. Wakeman*
Senior Vice President, Operations and Technical Services, Ameren Missouri Dennis W. Weisenborn*
Vice President, Safety and Supply Services, Ameren Services Raymond M. Wiesehan*
Vice President, Crisis Management, Ameren Services D. Scott Wiseman*
Vice President, External Affairs, Ameren Illinois Warren T. Wood*
Vice President, External Affairs and Communications, Ameren Missouri The of~cers also include the Ameren Executive Leadership Team on pages 14-15. The of~cer listing is as of March 1, 2015.
- Of~cer of an Ameren Corporation subsidiary only.
BOARD OF DIRECTORS Warner L. BaxterChairman, President and Chief Executive Officer, Ameren CorporationCatherine S. Brune Retired President, Allstate Protection Eastern Territory of Allstate Insurance Company Audit and Risk Committee; Nuclear Oversight and Environmental CommitteeJ. Edward Coleman Former Chairman and Chief Executive Officer, Unisys Corporation Nuclear Oversight and Environmental CommitteeEllen M. Fitzsimmons Executive Vice President of Law and Public Affairs, General Counsel and Corporate Secretary, CSX Corporation Audit and Risk Committee; Nominating and Corporate Governance CommitteeWalter J. Galvin Consultant and Retired Vice Chairman, Emerson Electric Co.
Audit and Risk Committee; Finance Committee; Lead DirectorRichard J. Harshman Chairman, President and Chief Executive Officer, Allegheny Technologies Incorporated Human Resources Committee; Nuclear Oversight and Environmental CommitteeDr. Gayle P. W. Jackson President and Chief Executive Officer, Energy Global, Inc.
Nominating and Corporate Governance Committee; Nuclear Oversight and Environmental CommitteeJames C. Johnson Retired General Counsel, Loop Capital Markets LLC Human Resources Committee; Nuclear Oversight and Environmental CommitteeSteven H. Lipstein President and Chief Executive Officer, BJC HealthCare Finance Committee; Human Resources CommitteePatrick T. Stokes Former Chairman, Anheuser-Busch Companies, Inc.
Human Resources Committee; Nominating and Corporate Governance CommitteeStephen R. Wilson Retired Chairman, President and Chief Executive Officer, CF Industries Holdings, Inc.
Audit and Risk Committee; Finance CommitteeJack D. Woodard Retired Executive Vice President and Chief Nuclear Officer, Southern Nuclear Operating Company, Inc.
Nominating and Corporate Governance Committee; Nuclear Oversight and Environmental Committee 16 UNITEDSTATESSECURITIESANDEXCHANGECOMMISSIONWashington,D.C.20549FORM10-K(X)AnnualreportpursuanttoSection13or15(d)oftheSecuritiesExchangeActof1934forthefiscalyearendedDecember31,2014.
OR()TransitionreportpursuanttoSection13or15(d)oftheSecuritiesExchangeActof1934forthe transitionperiodfromto.
Commission FileNumberExactnameofregistrantasspecifiedinitscharter; StateofIncorporation; AddressandTelephoneNumberIRSEmployer IdentificationNo.
1-14756AmerenCorporation 43-1723446(MissouriCorporation) 1901ChouteauAvenue St.Louis,Missouri63103 (314)621-3222 1-2967UnionElectricCompany 43-0559760(MissouriCorporation) 1901ChouteauAvenue St.Louis,Missouri63103 (314)621-3222 1-3672AmerenIllinoisCompany 37-0211380(IllinoisCorporation) 6ExecutiveDrive Collinsville,Illinois62234 (618)343-8150SecuritiesRegisteredPursuanttoSection12(b)oftheAct:ThefollowingsecurityisregisteredpursuanttoSection12(b)oftheSecuritiesExchangeActof1934andislistedontheNewYorkStockExchange:
RegistrantTitleofeachclassAmerenCorporationCommonStock,$0.01parvaluepershareSecuritiesRegisteredPursuanttoSection12(g)oftheAct:
RegistrantTitleofeachclassUnionElectricCompanyPreferredStock,cumulative,noparvalue,statedvalue$100pershareAmerenIllinoisCompanyPreferredStock,cumulative,$100parvaluepershare DepositaryShares,eachrepresentingone-fourthofashare of6.625%PreferredStock,cumulative,$100parvalueper
share Indicatebycheckmarkifeachregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.AmerenCorporationYes(X)No()UnionElectricCompanyYes()No(X)AmerenIllinoisCompanyYes()No(X)IndicatebycheckmarkifeachregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.
AmerenCorporationYes()No(X)UnionElectricCompanyYes()No(X)AmerenIllinoisCompanyYes()No(X)Indicatebycheckmarkwhethertheregistrants:(1)havefiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)havebeensubjecttosuchfilingrequirementsforthepast90days.AmerenCorporationYes(X)No()UnionElectricCompanyYes(X)No()AmerenIllinoisCompanyYes(X)No()Indicatebycheckmarkwhethereachregistranthassubmittedelectronicallyandpostedonitscorporatewebsite,ifany,everyInteractiveDataFilerequiredtobesubmittedandpostedpursuanttoRule405ofRegulationS-T(§232.405ofthis chapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitandpostsuch
files).AmerenCorporationYes(X)No()UnionElectricCompanyYes(X)No()AmerenIllinoisCompanyYes(X)No()IndicatebycheckmarkifdisclosureofdelinquentfilerspursuanttoItem405ofRegulationS-K(§229.405ofthischapter)isnotcontainedherein,andwillnotbecontained,tothebestofeachregistrant'sknowledge,indefinitiveproxyor informationstatementsincorporatedbyreferenceinPartIIIofthisForm10-KoranyamendmenttothisForm10-K.AmerenCorporation (X)UnionElectricCompany (X)AmerenIllinoisCompany (X)Indicatebycheckmarkwhethereachregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfilerorasmallerreportingcompany.Seedefinitionsof"largeacceleratedfiler,""acceleratedfiler,"and"smallerreportingcompany"in Rule12b-2oftheExchangeAct.
Large Accelerated Filer Accelerated Filer Non-accelerated Filer Smaller Reporting CompanyAmerenCorporation(X)()()()UnionElectricCompany()()(X)()AmerenIllinoisCompany()()(X)()Indicatebycheckmarkwhethereachregistrantisashellcompany(asdefinedinRule12b-2oftheAct).AmerenCorporationYes()No(X)UnionElectricCompanyYes()No(X)AmerenIllinoisCompanyYes()No(X)
AsofJune30,2014,AmerenCorporationhad242,634,798sharesofits$0.01parvaluecommonstockoutstanding.Theaggregatemarketvalueofthesesharesofcommonstock(basedupontheclosingpriceofthecommonstockontheNewYorkStockExchangeonJune30,2014)heldbynonaffiliateswas$9,918,910,542.Thesharesofcommonstockoftheother registrantswereheldbyAmerenCorporationasofJune30,2014.Thenumberofsharesoutstandingofeachregistrant'sclassesofcommonstockasofJanuary30,2015,wasasfollows:AmerenCorporationCommonstock,$0.01parvaluepershare:242,634,798UnionElectricCompanyCommonstock,$5parvaluepershare,heldbyAmeren Corporation(parentcompanyoftheregistrant):
102,123,834AmerenIllinoisCompanyCommonstock,noparvalue,heldbyAmeren Corporation(parentcompanyoftheregistrant):
25,452,373DOCUMENTSINCORPORATEDBYREFERENCEPortionsofthedefinitiveproxystatementofAmerenCorporationandportionsofthedefinitiveinformationstatementsofUnionElectricCompanyandAmerenIllinoisCompanyforthe2015annualmeetingsofshareholdersareincorporatedby referenceintoPartIIIofthisForm10-K.ThiscombinedForm10-KisseparatelyfiledbyAmerenCorporation,UnionElectricCompany,andAmerenIllinoisCompany.Eachregistrantheretoisfilingonitsownbehalfalloftheinformationcontainedinthisannualreportthatrelatesto suchregistrant.Eachregistrantheretoisnotfilinganyinformationthatdoesnotrelatetosuchregistrant,andthereforemakes norepresentationastoanysuchinformation.
TABLEOFCONTENTS PageGLOSSARYOFTERMSANDABBREVIATIONS.......................................................1Forward-lookingStatements.....................................................................4PARTIItem1.Business.........................................................................5 General......................................................................5BusinessSegments.............................................................6RatesandRegulation...........................................................6TransmissionandSupplyofElectricPower..........................................10PowerGeneration..............................................................11NaturalGasSupplyforDistribution.................................................13IndustryIssues................................................................14OperatingStatistics.............................................................15AvailableInformation...........................................................16Item1A.RiskFactors......................................................................17Item1B.UnresolvedStaffComments..........................................................24Item2.Properties........................................................................25Item3.LegalProceedings..................................................................26Item4.MineSafetyDisclosures.............................................................27ExecutiveOfficersoftheRegistrants(Item401(b)ofRegulationS-K).....................................27PARTII Item5.MarketforRegistrants'CommonEquity,RelatedStockholderMatters,andIssuerPurchasesofEquity Securities
........................................................................
29Item6.SelectedFinancialData..............................................................31Item7.Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations...........31 Overview.....................................................................32ResultsofOperations...........................................................33LiquidityandCapitalResources...................................................45 Outlook......................................................................57RegulatoryMatters.............................................................60AccountingMatters.............................................................60EffectsofInflationandChangingPrices.............................................63Item7A.QuantitativeandQualitativeDisclosuresAboutMarketRisk..................................64Item8.FinancialStatementsandSupplementaryData............................................67SelectedQuarterlyInformation....................................................144Item9.ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure..........144Item9A.ControlsandProcedures.............................................................145Item9B.OtherInformation..................................................................145PARTIII Item10.Directors,ExecutiveOfficers,andCorporateGovernance....................................145Item11.ExecutiveCompensation.............................................................146Item12.SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholder Matters..........................................................................
146Item13.CertainRelationshipsandRelatedTransactionsandDirectorIndependence.....................147Item14.PrincipalAccountingFeesandServices.................................................147PARTIV Item15.ExhibitsandFinancialStatementSchedules..............................................148 SIGNATURES.................................................................................152EXHIBITINDEX...............................................................................155Thisreportcontains"forward-looking"statementswithinthemeaningofSection21EoftheSecuritiesExchangeActof1934,asamended.Forward-lookingstatementsshouldbereadwiththecautionarystatementsandimportantfactorsundertheheading"Forward-lookingStatements."Forward-lookingstatementsareallstatementsotherthanstatementsofhistorical fact,includingthosestatementsthatareidentifiedbytheuseofthewords"anticipates,""estimates,""expects,""intends,"
"plans,""predicts,""projects,"andsimilarexpressions.
GLOSSARYOFTERMSANDABBREVIATIONSWeusethewords"our,""we"or"us"withrespecttocertaininformationthatrelatestoAmeren,AmerenMissouri,andAmerenIllinois,collectively.Whenappropriate,subsidiariesofAmerenCorporationarenamedspecificallyastheirvariousbusinessactivitiesarediscussed.2006IncentivePlan-The2006OmnibusIncentiveCompensationPlan,providesforcompensatorystock-basedawardstoeligibleemployeesanddirectors.The2006 OmnibusIncentiveCompensationPlanwasreplaced prospectivelyfornewgrantsbythe2014IncentivePlan.
2012CreditAgreements-The2012IllinoisCreditAgreementandthe2012MissouriCreditAgreement, collectively.
2012IllinoisCreditAgreement-Ameren'sandAmerenIllinois'$1.1billionmultiyearseniorunsecuredcredit agreement.Theagreementwasamendedandrestatedin December2014andexpiresonDecember11,2019.
2012MissouriCreditAgreement-Ameren'sandAmerenMissouri's$1billionmultiyearseniorunsecuredcredit agreement.Theagreementwasamendedandrestatedin December2014andexpiresonDecember11,2019.
2014IncentivePlan-The2014OmnibusIncentiveCompensationPlan,whichbecameeffectiveinApril2014 andprovidesforcompensatorystock-basedawardsto eligibleemployeesanddirectors.
AER-AmerenEnergyResourcesCompany,LLC,aformerAmerenCorporationsubsidiarythatconsistedofnon-rate-regulatedoperations.InDecember2013,AERcontributed substantiallyallofitsassetsandliabilities,includingits ownershipinterestsinGenco,AERG,andMarketing Company,toNewAER.MedinaValleywasdistributedfrom AERtoAmereninMarch2013.
AERG-AmerenEnergyResourcesGeneratingCompany,aformerAERsubsidiarythatoperatedamerchantelectric generationbusinessinIllinois.InDecember2013,AERG wasincludedinthedivestitureofNewAERtoIPH.
FollowingtheNewAERdivestiture,AERGbecameIllinois PowerResourcesGenerating,LLC.
Ameren-AmerenCorporationanditssubsidiariesonaconsolidatedbasis.Inreferencestofinancingactivities, acquisitionactivities,orliquidityarrangements,Amerenis definedasAmerenCorporation,theparent.
AmerenCompanies-AmerenCorporation,AmerenMissouri,andAmerenIllinois,collectively,whichare individualregistrantswithintheAmerenconsolidated
group.
AmerenIllinoisorAIC-AmerenIllinoisCompany,anAmerenCorporationsubsidiarythatoperatesrate-regulated electricandnaturalgastransmissionanddistribution businessesinIllinois,doingbusinessasAmerenIllinois.
AmerenIllinoisisalsodefinedasafinancialreporting
segment.
AmerenIllinoisMerger-In2010,CILCOandIPmergedwithandintoCIPS,withthesurvivingcorporationrenamed AmerenIllinoisCompany.
AmerenMissouriorAMO-UnionElectricCompany,anAmerenCorporationsubsidiarythatoperatesarate-regulatedelectricgeneration,transmissionanddistribution businessandarate-regulatednaturalgastransmissionanddistributionbusinessinMissouri,doingbusinessas AmerenMissouri.AmerenMissouriisalsodefinedasa financialreportingsegment.
AmerenServices-AmerenServicesCompany,anAmerenCorporationsubsidiarythatprovidessupportservicesto Amerenanditssubsidiaries.
AMIL-TheMISObalancingauthorityareaoperatedbyAmeren,whichincludestheloadofAmerenIllinoisand
ATXI.
AMMO-TheMISObalancingauthorityareaoperatedbyAmeren,whichincludestheloadandenergycentersof AmerenMissouri.
ARO-Assetretirementobligations.
ATXI-AmerenTransmissionCompanyofIllinois,anAmerenCorporationsubsidiarythatisengagedinthe constructionandoperationofelectrictransmissionassets.
Baseload-Theminimumamountofelectricpowerdeliveredorrequiredoveragivenperiodoftimeatasteady
rate.
Btu-Britishthermalunit,astandardunitformeasuringthequantityofheatenergyrequiredtoraisethetemperatureof onepoundofwaterbyonedegreeFahrenheit.
CAIR-CleanAirInterstateRule.
CCR-Coalcombustionresiduals,whichincludeflyash,bottomash,boilerslagandfluegasdesulfurization materialsgeneratedfromburningcoaltogenerate
electricity.
CILCO-CentralIllinoisLightCompany,aformerAmerenCorporationsubsidiarythatoperatedrate-regulatedelectric andnaturalgastransmissionanddistributionbusinessesin Illinois,beforetheAmerenIllinoisMerger.
CIPS-CentralIllinoisPublicServiceCompany,anAmerenCorporationsubsidiary,renamedAmerenIllinoisCompany upontheeffectivenessoftheAmerenIllinoisMerger,which operatesrate-regulatedelectricandnaturalgas transmissionanddistributionbusinessesinIllinois.
CleanPowerPlan-"CarbonPollutionEmissionGuidelinesforExistingStationarySources:ElectricUtilityGenerating Units,"aproposedrulepublishedbytheEPAinJune2014.
CO 2-Carbondioxide.
COL-Nuclearenergycentercombinedconstructionandoperatinglicense.
Coolingdegree-days-Thesummationofpositivedifferencesbetweenthemeandailytemperatureanda65-degreeFahrenheitbase.Thisstatisticisusefulasan indicatorofelectricitydemandbyresidentialand commercialcustomersforsummercooling.
CSAPR-Cross-StateAirPollutionRule.
CSRA-NaturalGasConsumer,SafetyandReliabilityAct,anIllinoislawthatencouragesnaturalgasutilitiesto acceleratemodernizationofthestate'snaturalgas infrastructurethroughtheuseofaQIPrider.
CT-Combustionturbineusedprimarilyforpeakingelectricgenerationcapacity.
1 Dekatherm-AstandardunitofenergyequivalenttoonemillionBtus.
DOE-DepartmentofEnergy,aUnitedStatesgovernment agency.
DRPlus-AmerenCorporation'sdividendreinvestmentanddirectstockpurchaseplan.
Dynegy-DynegyInc.
EEI-ElectricEnergy,Inc.,aformer80%-ownedGencosubsidiarythatoperatedmerchantelectricgeneration energycentersandFERC-regulatedtransmissionfacilitiesin Illinois.InDecember2013,Genco'sownershipinterestin EEIwasincludedinthedivestitureofNewAERtoIPH.
Entergy-EntergyArkansas,Inc.
EPA-EnvironmentalProtectionAgency,aUnitedStatesgovernmentagency.
ERISA-EmployeeRetirementIncomeSecurityActof1974,asamended.
ExchangeAct-SecuritiesExchangeActof1934,as amended.
FAC-Fueladjustmentclause,afuelandpurchasedpowercostrecoverymechanismthatallowsAmerenMissourito recover,throughcustomerrates,95%ofchangesinnet energycostsgreaterorlessthantheamountsetinbase rateswithoutatraditionalrateproceeding,subjectto MoPSCprudencereviews.Netenergycostsincludefuel andpurchasedpowercosts,includingtransportation chargesandrevenues,netofoff-systemsales.
FASB-FinancialAccountingStandardsBoard,arulemakingorganizationthatestablishesfinancial accountingandreportingstandardsintheUnitedStates.
FERC-FederalEnergyRegulatoryCommission,aUnitedStatesgovernmentagency.
Fitch-FitchRatings,acreditratingagency.
FTRs-Financialtransmissionrights,financialinstrumentsthatspecifywhethertheholdershallpayorreceive compensationforcertaincongestion-relatedtransmission chargesbetweentwodesignatedpoints.
GAAP-GenerallyacceptedaccountingprinciplesintheUnitedStates.
Genco-AmerenEnergyGeneratingCompany,aformerAERsubsidiarythatoperatedamerchantelectricgeneration businessinIllinoisandheldan80%ownershipinterestin EEI.InDecember2013,Gencowasincludedinthe divestitureofNewAERtoIPH.FollowingtheNewAER divestiture,GencobecameIllinoisPowerGenerating
Company.
Heatingdegree-days-Thesummationofnegativedifferencesbetweenthemeandailytemperatureanda65-degreeFahrenheitbase.Thisstatisticisusefulasan indicatorofdemandforelectricityandnaturalgasforwinter heatingbyresidentialandcommercialcustomers.
IBEW-InternationalBrotherhoodofElectricalWorkers,alaborunion.
ICC-IllinoisCommerceCommission,astateagencythatregulatesIllinoisutilitybusinesses,includingAmeren IllinoisandATXI.
IEIMA-IllinoisEnergyInfrastructureModernizationAct,anIllinoislawthatestablishedaperformance-basedformula processfordeterminingelectricdeliveryservicerates.Byitselectiontoparticipateinthisregulatoryframework, AmerenIllinoisisrequiredtomakeincrementalcapital expenditurestomodernizeitselectricdistributionsystem, meetperformancestandards,andcreatejobsinIllinois, amongotherrequirements.
IP-IllinoisPowerCompany,aformerAmerenCorporationsubsidiarythatoperatedrate-regulatedelectricandnatural gastransmissionanddistributionbusinessesinIllinois, beforetheAmerenIllinoisMerger.
IPA-IllinoisPowerAgency,astategovernmentagencythathasbroadauthoritytoassistintheprocurementof electricpowerforresidentialandsmallcommercial
customers.
IPH-IllinoisPowerHoldings,LLC,anindirectwhollyownedsubsidiaryofDynegy.
IRS-InternalRevenueService,aUnitedStatesgovernment agency.
ISRS-Infrastructuresystemreplacementsurcharge,whichisacostrecoverymechanismthatallowsAmerenMissouri torecovernaturalgasinfrastructurereplacementcosts fromutilitycustomerswithoutatraditionalrateproceeding.
IUOE-InternationalUnionofOperatingEngineers,alabor union.
Kilowatthour-Ameasureofelectricityconsumptionequivalenttotheuseof1,000wattsofpoweroverone
hour.
LIUNA-Laborers'InternationalUnionofNorthAmerica,alaborunion.
MarketingCompany-AmerenEnergyMarketingCompany,aformerAERsubsidiarythatmarketedpowerforGenco, AERG,andEEI.MarketingCompanywasincludedinthe divestitureofNewAERtoIPHinDecember2013.Following theNewAERdivestiture,MarketingCompanybecame IllinoisPowerMarketingCompany.
MATS-MercuryandAirToxicsStandards.MedinaValley-AmerenEnergyMedinaValleyCogen,LLC,anAmerenCorporationsubsidiary.Thiscompanywas distributedfromAERtoAmereninMarch2013.
MEEIA-MissouriEnergyEfficiencyInvestmentAct,aMissourilawthatallowselectricutilitiestorecovercosts relatedtoMoPSC-approvedcustomerenergyefficiency
programs.
MegawatthourorMWh-Onethousandkilowatthours.MerchantGeneration-Aformerfinancialreportingsegmentthat,priortothedivestitureofNewAERtoIPHin December2013,consistedprimarilyoftheoperationsof AER,includingGenco,AERG,MarketingCompanyand, throughMarch2013,MedinaValley.
MGP-Manufacturedgasplant.
MIEC-MissouriIndustrialEnergyConsumers,anassociationofindustrialcompanies.
MISO-MidcontinentIndependentSystemOperator,Inc.,anRTO.
MissouriEnvironmentalAuthority-EnvironmentalImprovementandEnergyResourcesAuthorityofthestate ofMissouri,agovernmentalbodyauthorizedtofinance environmentalprojectsbyissuingtax-exemptbondsand
notes.
Mmbtu-OnemillionBtus.
2 Moneypool-BorrowingagreementsamongAmerenanditssubsidiariestocoordinateandprovideforcertainshort-termcashandworkingcapitalrequirements.
Moody's-Moody'sInvestorsServiceInc.,acreditrating agency.
MoOPC-MissouriOfficeofthePublicCounsel.
MoPSC-MissouriPublicServiceCommission,astateagencythatregulatesMissouriutilitybusinesses,including AmerenMissouri.
MTM-Mark-to-market.
MW-Megawatt.Nativeload-End-useretailcustomerswhomweareobligatedtoservebystatute,franchise,contract,orother regulatoryrequirement.
NEIL-NuclearElectricInsuranceLimited,whichincludesallofitsaffiliatedcompanies.
NERC-NorthAmericanElectricReliabilityCorporation.Netenergycosts-Netenergycosts,asdefinedintheFAC,includefuelandpurchasedpowercosts,including transportationchargesandrevenues,netofoff-systemsales.
NewAER-NewAmerenEnergyResourcesCompany,LLC,alimitedliabilitycompanyformedasadirectwhollyowned subsidiaryofAER.NewAER,acquiredbyIPHinDecember 2013,includedsubstantiallyalloftheassetsandliabilities ofAER,exceptforcertainassetsandliabilitiesretainedby Ameren.FollowingtheNewAERdivestiture,NewAER becameIllinoisPowerResources,LLC.
NO 2-Nitrogendioxide.
NO x-Nitrogenoxides.
Noranda-NorandaAluminum,Inc.
NPNS-Normalpurchasesandnormalsales.
NRC-NuclearRegulatoryCommission,aUnitedStatesgovernmentagency.
NSPS-NewSourcePerformanceStandards,aprovisionundertheCleanAirAct.
NSR-NewSourceReviewprovisionsoftheCleanAirAct,whichincludeNonattainmentNewSourceReviewand PreventionofSignificantDeteriorationregulations.
NWPA-NuclearWastePolicyActof1982,asamended.
NYMEX-NewYorkMercantileExchange.
NYSE-NewYorkStockExchange,Inc.
OATT-OpenAccessTransmissionTariff.
OCI-Othercomprehensiveincome(loss)asdefinedby GAAP.
Off-systemsalesrevenues-Revenuesfromotherthannativeloadsales,includingwholesalesales.
OTC-Over-the-counter.
PGA-PurchasedGasAdjustmenttariffs,whichpermitprudentlyincurrednaturalgascoststoberecovereddirectly fromutilitycustomerswithoutatraditionalrateproceeding.
PJM-PJMInterconnectionLLC.,anRTO.PUHCA2005-ThePublicUtilityHoldingCompanyActof 2005.
QIP-Qualifyinginfrastructureplant.Costsofqualifyinginfrastructureplantthatmaybeincludedinarecovery mechanismenactedaspartoftheCSRA.
Ratebase-Thenetvalueofpropertyonwhichapublicutilityispermittedtoearnanallowedrateofreturn.
Regulatorylag-Theexposuretodifferencesincostsincurredandactualsalesvolumelevelsascomparedwith theassociatedamountsincludedincustomerrates.Rate increaserequestsintraditionalratecaseproceedingscan takeupto11monthstobeacteduponbytheMoPSCand theICC.Asaresult,revenueincreasesauthorizedby regulatorswilllagbehindchangingcostsandsalesvolume levelswhenbasedonhistoricalperiods.
Revenuerequirement-Thecostofprovidingutilityservicetocustomers,whichiscalculatedasthesumofautility's recoverableoperatingandmaintenanceexpenses, depreciationandamortizationexpense,taxes,andan allowedreturnoninvestment.
RFP-Requestforproposal.RocklandCapital-RocklandCapital,LLC,togetherwiththespecialpurposeentityaffiliatedwith,andformedby, RocklandCapital,LLC,thatacquiredtheElgin,GibsonCity, andGrandTowergas-firedenergycentersinJanuary2015.
RTO-Regionaltransmissionorganization.
S&P-Standard&Poor'sRatingsServices,acreditrating agency.
SEC-SecuritiesandExchangeCommission,aUnitedStatesgovernmentagency.
SERC-SERCReliabilityCorporation,oneoftheregionalelectricreliabilitycouncilsorganizedforcoordinatingthe planningandoperationofthenation'sbulkpowersupply.
SO 2-Sulfurdioxide.Testyear-Theselectedperiodoftime,typicallyatwelve-monthperiod,forwhichautility'shistoricalorforecasted operatingresultsareusedtodeterminetheappropriate revenuerequirement.
UA-UnitedAssociationofPlumbersandPipefitters,alaborunion.
3 FORWARD-LOOKINGSTATEMENTSStatementsinthisreportnotbasedonhistoricalfactsareconsidered"forward-looking"and,accordingly,involverisksanduncertaintiesthatcouldcauseactualresultsto differmateriallyfromthosediscussed.Althoughsuch forward-lookingstatementshavebeenmadeingoodfaith andarebasedonreasonableassumptions,thereisno assurancethattheexpectedresultswillbeachieved.These statementsinclude(withoutlimitation)statementsasto futureexpectations,beliefs,plans,strategies,objectives, events,conditions,andfinancialperformance.In connectionwiththe"safeharbor"provisionsofthePrivate SecuritiesLitigationReformActof1995,weareproviding thiscautionarystatementtoidentifyimportantfactorsthat couldcauseactualresultstodiffermateriallyfromthose anticipated.Thefollowingfactors,inadditiontothose discussedunderRiskFactorsandelsewhereinthisreport andinourotherfilingswiththeSEC,couldcauseactual resultstodiffermateriallyfrommanagementexpectations suggestedinsuchforward-lookingstatements:
regulatory,judicial,orlegislativeactions,includingchangesinregulatorypoliciesandratemaking determinations,suchasAmerenMissouri'sJuly2014 electricratecasefiling;AmerenMissouri'sDecember 2014MEEIAfiling;AmerenIllinois'appealoftheICC's naturalgasrateorderissuedinDecember2013; AmerenIllinois'January2015naturalgasdelivery serviceratecasefiling;FERCsettlementprocedures regardingapotentialAmerenIllinoiselectric transmissionraterefund;thecomplaintcasefiledwith theFERCseekingareductionintheallowedreturnon commonequityundertheMISOtariff;andfuture regulatory,judicial,orlegislativeactionsthatseekto changeregulatoryrecoverymechanisms; theeffectofAmerenIllinoisparticipatingina performance-basedformularatemakingprocessunder theIEIMA,includingthedirectrelationshipbetween AmerenIllinois'returnoncommonequityand30-year UnitedStatesTreasurybondyields,therelatedfinancial commitmentsrequiredbytheIEIMA,andtheresulting uncertainimpactonthefinancialcondition,resultsof operations,andliquidityofAmerenIllinois; thepotentialextensionoftheIEIMAafteritscurrent sunsetprovisionattheendof2017,andanychanges totheperformance-basedformularatemakingprocess orrequiredfinancialcommitments; theeffectsofincreasedcompetitioninthefuturedue to,amongotherfactors,deregulationofcertainaspects ofourbusinessateitherthestateorfederallevel; changesinlawsandothergovernmentalactions, includingmonetary,fiscal,tax,andenergypolicies; theeffectsondemandforourservicesresultingfrom technologicaladvances,includingadvancesin customerenergyefficiencyanddistributedgeneration sources,whichgenerateelectricityatthesiteof
consumption; theeffectivenessofAmerenMissouri'scustomer energyefficiencyprogramsandtheabilitytoearn incentiveawardsundertheMEEIA; thetimingofincreasingcapitalexpenditureand operatingexpenserequirementsandourabilityto recoverthesecostsinatimelymanner; thecostandavailabilityoffuelsuchascoal,natural gas,andenricheduraniumusedtoproduceelectricity; thecostandavailabilityofpurchasedpowerandnatural gasfordistribution;andthelevelandvolatilityoffuture marketpricesforsuchcommodities,includingour abilitytorecoverthecostsforsuchcommoditiesand ourcustomers'tolerancefortherelatedrateincreases; theeffectivenessofourriskmanagementstrategies andouruseoffinancialandderivativeinstruments; businessandeconomicconditions,includingtheir impactonkeycustomers,interestrates,baddebt expense,anddemandforourproducts; disruptionsofthecapitalmarkets,deteriorationin creditmetricsoftheAmerenCompanies,orother eventsthatmayhaveanadverseeffectonthecostor availabilityofcapital,includingshort-termcreditand
liquidity; ourassessmentofourliquidity; theimpactoftheadoptionofnewaccountingguidance andtheapplicationofappropriatetechnicalaccounting rulesandguidance; actionsofcreditratingagenciesandtheeffectsofsuch
actions;theimpactofweatherconditionsandothernatural phenomenaonusandourcustomers,includingthe impactofsystemoutages; theconstruction,installation,performance,andcost recoveryofgeneration,transmission,anddistribution
assets;theeffectsofourincreasinginvestmentinelectric transmissionprojectsanduncertaintyastowhetherwe willachieveourexpectedreturnsinatimelyfashion,if atall;theextenttowhichAmerenMissouriprevailsinits claimagainstaninsurerinconnectionwiththe December2005breachoftheupperreservoiratits TaumSaukpumped-storagehydroelectricenergy
center;theextenttowhichAmerenMissouriispermittedbyits regulatorstorecoverinratestheinvestmentsitmade inconnectionwithadditionalnucleargenerationatits Callawayenergycenter; operationofAmerenMissouri'sCallawayenergycenter, includingplannedandunplannedoutages,and decommissioningcosts; theeffectsofstrategicinitiatives,includingmergers, acquisitionsanddivestitures,andanyrelatedtax
implications; theimpactofcurrentenvironmentalregulationsandnew,morestringent,orchangingrequirements, includingthoserelatedtogreenhousegases,other emissionsanddischarges,coolingwaterintake structures,CCR,andenergyefficiency,thatareenacted overtimeandthatcouldlimitorterminatethe operationofcertainofourenergycenters,increaseour costsorinvestmentrequirements,resultinan impairmentofourassets,causeustosellourassets, 4 reduceourcustomers'demandforelectricityornaturalgas,orotherwisehaveanegativefinancialeffect; theimpactofcomplyingwithrenewableenergy portfoliorequirementsinMissouri; labordisputes,workforcereductions,futurewageand employeebenefitscosts,includingchangesindiscount rates,mortalitytables,andreturnsonbenefitplan
assets;theinabilityofourcounterpartiestomeettheir obligationswithrespecttocontracts,credit agreements,andfinancialinstruments; thecostandavailabilityoftransmissioncapacityforthe energygeneratedbyAmerenMissouri'senergycenters orrequiredtosatisfyAmerenMissouri'senergysales; theinabilityofDynegyandIPHtosatisfytheir indemnityandotherobligationstoAmerenin connectionwiththedivestitureofNewAERtoIPH; legalandadministrativeproceedings;and actsofsabotage,war,terrorism,cyberattacks,orother intentionallydisruptiveacts.Giventheseuncertainties,unduerelianceshouldnotbeplacedontheseforward-lookingstatements.Excepttotheextentrequiredbythefederalsecuritieslaws,weundertakenoobligationtoupdateorrevisepubliclyanyforward-lookingstatements toreflectnewinformationorfutureevents.PARTIITEM1.BUSINESS GENERALAmeren,headquarteredinSt.Louis,Missouri,isapublicutilityholdingcompanyunderPUHCA2005,administeredbytheFERC.Amerenwasformedin1997by themergerofAmerenMissouriandCIPSCOInc.,which wastheparentcompanyofCIPS.Amerenacquired CILCORPInc.,whichwastheparentcompanyofCILCO,in 2003andIPin2004.CIPS,CILCO,andIPweremergedto formAmerenIllinoisin2010.Ameren'sprimaryassetsare itsequityinterestsinitssubsidiaries,includingAmeren MissouriandAmerenIllinois.Ameren'ssubsidiariesare separate,independentlegalentitieswithseparate businesses,assets,andliabilities.DividendsonAmeren's commonstockandthepaymentofotherexpensesby Amerendependondistributionsmadetoitbyits
subsidiaries.BelowisasummarydescriptionofAmerenMissouriandAmerenIllinois.Amoredetaileddescriptioncanbe foundinNote1-SummaryofSignificantAccounting PoliciesunderPartII,Item8,ofthisreport.
AmerenMissourioperatesarate-regulatedelectricgeneration,transmission,anddistributionbusinessand arate-regulatednaturalgastransmissionand distributionbusinessinMissouri.
AmerenIllinoisoperatesrate-regulatedelectricand naturalgastransmissionanddistributionbusinessesin
Illinois.Amerenhasvariousothersubsidiariesresponsibleforactivitiessuchastheprovisionofsharedservices.Ameren alsohasasubsidiary,ATXI,thatoperatesaFERCrate-regulatedelectrictransmissionbusiness.ATXIisdeveloping MISO-approvedelectrictransmissionprojects,includingthe IllinoisRivers,SpoonRiver,andMarkTwainprojects.
AmerenisalsopursuingreliabilityprojectswithinAmeren Missouri'sandAmerenIllinois'serviceterritoriesaswellas competitiveelectrictransmissioninvestmentopportunities outsideoftheseterritories,includinginvestmentsoutsideof
MISO.InDecember2013,AmerencompletedthedivestitureofNewAERtoIPH.InJanuary2014,MedinaValley completeditssaleoftheElgin,GibsonCity,andGrand Towergas-firedenergycenterstoRocklandCapital.In addition,in2013,AmerenabandonedtheMeredosiaand Hutsonvilleenergycentersuponthecompletionofthe divestitureofNewAERtoIPH.Amerenhasbegunto demolishtheHutsonvilleenergycenterandexpectsto demolishtheMeredosiaenergycenterthereafter.Asa resultoftheseevents,Amerensegregatedtheoperating results,assets,andliabilitiesforNewAERandfortheElgin, GibsonCity,GrandTower,Meredosia,andHutsonville energycentersandpresentedthemseparatelyas discontinuedoperationsforallperiodspresentedinthis report.Unlessotherwisestated,thefollowinginformation presentedinPartI,Item1,ofthisreportexcludes discontinuedoperationsforallperiodspresented.SeeNote 16-DivestitureTransactionsandDiscontinuedOperations underPartII,Item8,ofthisreportforadditional
information.ThefollowingtablepresentsourtotalemployeesatDecember31,2014:AmerenMissouri
.................................
3,924AmerenIllinois
...................................
3,208AmerenServicesandOther
.........................
1,395 Ameren........................................
8,527AsofJanuary1,2015,theIBEW,theIUOE,theLIUNA,andtheUAlaborunionscollectivelyrepresentedabout55%
ofAmeren'stotalemployees.Theyrepresented63%ofthe employeesatAmerenMissouriand60%atAmerenIllinois.
Thecollectivebargainingagreementshavetermsranging fromtwotosixyears,andexpirebetween2015and2017.Foradditionalinformationaboutthedevelopmentofourbusinesses,ourbusinessoperations,andfactors affectingouroperationsandfinancialposition,see Management'sDiscussionandAnalysisofFinancial 5
ConditionandResultsofOperationsunderPartII,Item7,ofthisreportandNote1-SummaryofSignificant AccountingPoliciesunderPartII,Item8,ofthisreport.BUSINESSSEGMENTSAmerenhastworeportablesegments:AmerenMissouriandAmerenIllinois.AmerenMissouriandAmerenIllinoiseachhaveonereportablesegment.TheAmeren MissourisegmentforbothAmerenandAmerenMissouri includesalltheoperationsofAmerenMissouri.TheAmeren IllinoissegmentforbothAmerenandAmerenIllinois consistsofalloftheoperationsofAmerenIllinois.SeeNote 1-SummaryofSignificantAccountingPoliciesandNote 17-SegmentInformationunderPartII,Item8,ofthis reportforadditionalinformationonreportingsegments.RATESANDREGULATION RatesTheratesthatAmerenMissouri,AmerenIllinois,andATXIareallowedtochargefortheirutilityservicessignificantlyinfluencetheresultsofoperations,financial position,andliquidityofthesecompaniesandAmeren.The electricandnaturalgasutilityindustryishighlyregulated.
Theutilityrateschargedtocustomersaredetermined,in largepart,bygovernmentalentities,includingtheMoPSC, theICC,andtheFERC.Decisionsbytheseentitiesare influencedbymanyfactors,includingthecostofproviding service,theprudencyofexpenditures,thequalityofservice,regulatorystaffknowledgeandexperience,customer intervention,economicconditions,publicpolicy,andsocial andpoliticalviews.Decisionsmadebythesegovernmental entitiesregardingratesarelargelyoutsideofourcontrol.
Thesedecisions,aswellastheregulatorylaginvolvedin filingandgettingnewratesapproved,couldhaveamaterial effectontheresultsofoperations,financialposition,and liquidityofAmeren,AmerenMissouri,andAmerenIllinois.
TheextentoftheregulatorylagvariesforeachofAmeren's electricandnaturalgasjurisdictions,withtheFERC-regulatedelectricandIllinoiselectricdistribution jurisdictionsexperiencingtheleastamountofregulatory lag.Dependingonthejurisdiction,theeffectsofregulatory lagaremitigatedthroughavarietyofmeans,includingthe useofafuturetestyear,theimplementationoftrackersand riders,thedeferralofdepreciationforassetsnotyet includedinratebase,thelevelandtimingofexpenditures, andbyregulatoryframeworksthatincludeannualrevenue requirementreconciliations.TheMoPSCregulatesratesandothermattersforAmerenMissouri.TheICCregulatesratesandothermatters forAmerenIllinois,aswellasnon-rateutilitymattersfor ATXI.ATXIdoesnothaveretaildistributioncustomers; therefore,theICCdoesnothaveauthoritytoregulateits rates.TheFERCregulatesAmerenMissouri's,Ameren Illinois',andATXI'scost-basedratesforthewholesale distributionandtransmissionofenergyininterstate commerceandvariousothermattersdiscussedbelow underGeneralRegulatoryMatters.Thefollowingtablesummarizes,byratejurisdiction,thekeytermsoftherateordersineffectforcustomerbillingsforeachofAmeren'srate-regulatedutilitiesasofJanuary1,2015.
Regulator Allowed Return on Equity Percent of Common EquityRateBase(inbillions)PortionofAmeren's2014 Operating Revenues (a)AmerenMissouriElectricservice (b)(c)........................................MoPSC9.8%52.3%$6.856%Naturalgasdeliveryservice (d)...............................MoPSC(d)52.9%$0.23%AmerenIllinoisElectricdistributiondeliveryservice (e).........................ICC9.25%51.0%$2.123%Naturalgasdeliveryservice (f)................................ICC9.1%51.7%$1.116%Electrictransmissiondeliveryservice (g)........................FERC12.38%53.8%$0.92%
ATXIElectrictransmissiondeliveryservice (g)........................FERC12.38%56.0%$0.5(h)(a)Includespass-throughcostsrecoveredfromcustomers,suchaspurchasedpowerforelectricdistributiondeliveryserviceandgaspurchasedforresalefornaturalgasdeliveryservice,andintercompanyeliminations.(b)AmerenMissouri'selectricgeneration,transmission,anddeliveryserviceratesarebundledtogetherandchargedtoretailcustomersunderacombinedelectricservicerate.(c)BasedontheMoPSC'sDecember2012rateorder,whichbecameeffectiveonJanuary2,2013.AmerenMissouriwillhavenewelectricservicerateseffectivebyJune2015,uponthecompletionofitsratecaseproceedingthatwasfiledinJuly2014.(d)BasedontheMoPSC'sJanuary2011rateorder,whichbecameeffectiveonFebruary20,2011.Thisrateorderdidnotspecifytheallowedreturnonequity.(e)BasedontheICC'sDecember2014rateorder,whichbecameeffectiveonJanuary1,2015.TheDecember2014rateorderwasbasedon2013recoverablecosts,expectednetplantadditionsfor2014,andthemonthlyyieldsduring2013ofthe30-yearUnitedStatesTreasurybondsplus580basispoints.AmerenIllinois'2015electricdistributiondeliveryservicerevenueswillbebasedonits2015actualrecoverablecosts,rate base,andreturnoncommonequity,ascalculatedundertheIEIMA'sperformance-basedformularatemakingframework.(f)BasedontheICC'sDecember2013rateorder,whichbecameeffectiveonJanuary1,2014.Therateorderwasbasedona2014futuretestyear.
(g)TransmissionratesareupdatedandbecomeeffectiveeachJanuary.Theyaredeterminedbyacompany-specific,forward-lookingrateformulabasedoneachyear'sforecastedinformation.The12.38%returnisthesubjectoftwoFERCcomplaintproceedingsthatchallengetheallowed returnoncommonequityforMISOtransmissionowners.(h)Lessthan1%.
6 AmerenMissouri ElectricAmerenMissouri'selectricoperatingrevenuesaresubjecttoregulationbytheMoPSC.Ifcertaincriteriaaremet,thenAmerenMissouri'selectricratesmaybeadjusted withoutatraditionalrateproceeding.TheFACpermits AmerenMissouritorecover,throughcustomerrates,95%
ofchangesinnetenergycostsgreaterthanorlessthanthe amountsetinbaserateswithoutatraditionalrate proceeding,subjecttoprudencereviews.Netenergycosts, asdefinedintheFAC,includefuelandpurchasedpower costs,includingtransportationchargesandrevenues,netof off-systemsales.Similarly,allofAmerenMissouri'sMEEIA costs,includingcustomerenergyefficiencyprogramcosts, lostrevenues,andanyincentiveawards,arerecovered throughariderthatmaybeadjustedwithoutatraditional rateproceeding.InadditiontotheFACandtheMEEIArecoverymechanisms,AmerenMissouriemploysothercost recoverymechanisms,includingavegetationmanagement andinfrastructureinspectioncosttracker,apensionand postretirementbenefitcosttracker,anuncertaintax positiontracker,arenewableenergystandardscosttracker, asolarrebateprogramtracker,andastormcosttracker.
EachofthesetrackersallowsAmerenMissouritorecord thedifferencebetweenthelevelofincurredcostsunder GAAPandthelevelofsuchcostsbuiltintoratesasa regulatoryassetorregulatoryliability,whichwillbe includedinratesinafutureMoPSCrateorder.TheFERCregulatestherateschargedandthetermsandconditionsforelectrictransmissionservices.Because AmerenMissouriisamemberofMISO,itstransmission rateiscalculatedinaccordancewiththeMISOOATT.The transmissionrateisupdatedeachJunebasedonAmeren Missouri'sfilingswiththeFERC.Thisrateisnotdirectly chargedtoMissouriretailcustomersbecause,inMissouri, theMoPSCincludestransmission-relatedcostsand revenuesinbundledretailrates.Asdiscussedabove, AmerenMissouritransportationchargesandrevenuesare includedintheFAC.NaturalGasAmerenMissouri'snaturalgasoperatingrevenuesaresubjecttoregulationbytheMoPSC.Ifcertaincriteriaaremet,thenAmerenMissouri'snaturalgasratesmaybe adjustedwithoutatraditionalrateproceeding.PGAclauses permitprudentlyincurrednaturalgascoststobepassed directlytocustomers.TheISRSalsopermitscertain prudentlyincurrednaturalgasinfrastructurereplacement coststoberecoveredfromcustomersonamoretimely basisbetweenratecases.Thereturnonequitytobeused byAmerenMissouriforpurposesoftheISRStariffis10%.AmerenIllinois ElectricAmerenIllinois'electricdistributiondeliveryserviceoperatingrevenuesareregulatedbytheICC,whileitselectrictransmissiondeliveryserviceoperatingrevenues areregulatedbytheFERC.In2014,AmerenIllinois'electric distributiondeliveryserviceaccountedfor91%ofitstotal electricoperatingrevenues.Theremainderwererelatedto electrictransmissiondeliveryservice.UnderIllinoislaw,electriccustomersmaychoosetheirownelectricenergyprovider.However,AmerenIllinoisis requiredtoserveastheprovideroflastresortforelectric customerswithinitsterritorywhohavenotchosenan alternativeretailelectricsupplier.In2014,AmerenIllinois wastheprovideroflastresortforapproximately26%of electriccustomerswithinitsterritory.AmerenIllinois' obligationtoprovidethisrequiredelectricservicevariesby customersize.AmerenIllinoisisnotrequiredtoofferfixed-pricedelectricservicetocustomerswithelectricdemands of400kilowattsorgreater,asthemarketforservicetothis groupofcustomershasbeendeclaredcompetitive.Power andrelatedprocurementcostsincurredbyAmerenIllinois arepasseddirectlytoitscustomersthroughacostrecovery
mechanism.AmerenIllinoisparticipatesintheperformance-basedformularatemakingprocessestablishedpursuanttothe IEIMA.TheIEIMAwasdesignedtoprovidefortherecovery ofactualcostsofelectricdeliveryservicethatareprudently incurredandtoreflecttheutility'sactualregulatedcapital structurethroughaformulaforcalculatingthereturnon equitycomponentofthecostofcapital.Thereturnon equitycomponentoftheformularateisequaltothe averageforthecalendaryearofthemonthlyyieldsofthe 30-yearUnitedStatesTreasurybondsplus580basis points.AmerenIllinois'actualreturnonequityrelatingto electricdeliveryserviceissubjecttoacollaradjustmenton earningsinexcessof50basispointsgreaterorlessthanits allowedreturn.TheIEIMAprovidesforanannual reconciliationoftherevenuerequirementnecessaryto reflecttheactualcostsincurredinagivenyearwiththe revenuerequirementincludedincustomerratesforthat year,includinganallowedreturnonequity.Thisannual revenuereconciliation,alongwiththecollaradjustment,if necessary,willbecollectedfromorrefundedtocustomers withinthenexttwoyears.AmerenIllinoisisalsosubjecttoperformancestandardsundertheIEIMA.Failuretoachievethestandards wouldresultinareductioninthecompany'sallowedreturn onequitycalculatedundertheformula.Theperformance standardsincludeimprovementsinservicereliabilityto reduceboththefrequencyanddurationofoutages, reductioninthenumberofestimatedbills,reductionof consumptiononinactivemeters,andareductionin uncollectibleaccountsexpense.TheIEIMAprovidesfor returnonequitypenaltiestotalingupto30basispointsin 2015,34basispointsin2016through2018,and38basis pointsin2019through2022iftheperformancestandards 7
arenotmet.Theformularatemakingprocessiscurrentlyeffectiveuntiltheendof2017.Legislationpassedbythe IllinoisGeneralAssembly,whichisawaitingthegovernor's approval,wouldextendtheformularateprocessuntilthe endof2019,withfurtherextensionpossiblethrough2022.Between2012and2021,AmerenIllinoisisrequired,pursuanttotheIEIMA,toinvest$625millionincapital projectsincrementaltoitsaverageelectricdeliveryservice capitalprojectsinvestmentsof$228millionforcalendar years2008through2010,tomodernizeitsdistribution system.Through2014,AmerenIllinoishasinvested
$149millioninIEIMAcapitalprojectstowardits
$625millionrequirement.Suchinvestmentsareexpected toencourageeconomicdevelopmentandtocreatean estimated450additionaljobswithinIllinois.AmerenIllinois issubjecttomonetarypenaltiesif450additionaljobsare notcreatedduringthepeakprogramyear.AmerenIllinoisemployscostrecoverymechanismsforpowerprocurement,customerenergyefficiencyprograms, certainenvironmentalcosts,andbaddebtexpensenot recoveredinbaserates.AmerenIllinoisalsohasatariff ridertorecoverthecostsofcertainasbestos-relatedclaims.BecauseAmerenIllinoisisamemberofMISO,itstransmissionrateiscalculatedinaccordancewiththeMISO OATT.Currently,theFERC-allowedreturnoncommon equityintheratemakingformulaforMISOtransmission ownersis12.38%.However,the12.38%returnisthe subjectoftwoFERCcomplaintproceedingsthatchallenge theallowedreturnoncommonequityforMISO transmissionowners.InJanuary2015,theFERCscheduled theinitialcaseforhearingproceedings,requiringaninitial decisiontobeissuednolaterthanNovember30,2015.
AlsoinJanuary2015,FERCapprovedanincentiveadderof upto50basispointsontheallowedbasereturnon commonequityforAmerenIllinois'participationinanRTO.
AmerenIllinoiswilldefercollectionofthisincentiveadder untiltheissuanceofthefinalorderaddressingtheinitial MISOcomplaintcase.AmerenIllinoishasreceivedFERC approvaltouseacompany-specific,forward-lookingrate formulaframeworkinsettingitstransmissionrates.These forward-lookingratesareupdatedeachJanuarywith forecastedinformation.Areconciliationduringtheyear, whichadjustsfortheactualrevenuerequirementandactual salesvolumes,isusedtoadjustbillingratesina subsequentyear.InIllinois,theAMILpricingzone transmissionrateischargeddirectlytowholesale customersandalternativeretailelectricsuppliers,which serveunbundledretailload.TheAMILpricingzone transmissionrateandotherMISO-relatedcostsare collectedfromretailcustomerswhohavenotchosenan alternativeretailelectricsupplierthrougharidermechanism inAmerenIllinois'retaildistributiontariffs.NaturalGasAmerenIllinois'naturalgasoperatingrevenuesaresubjecttoregulationbytheICC.Ifcertaincriteriaaremet,thenAmerenIllinois'naturalgasratesmaybeadjustedwithoutatraditionalrateproceeding.PGAclausespermitprudentlyincurrednaturalgascoststobepasseddirectlytocustomers.Also,AmerenIllinoisemployscostrecovery mechanismsforcustomerenergyefficiencyprograms, certainenvironmentalcosts,andbaddebtexpensesnot recoveredinbaserates.InJuly2013,IllinoisenactedtheCSRA,whichencouragesIllinoisnaturalgasutilitiestoaccelerate modernizationofthestate'snaturalgasinfrastructure.The lawallowsnaturalgasutilitiestofileforaQIPrider.AQIP riderprovidesforasurchargetobeaddedtocustomers' billstorecoverdepreciationexpenseforandtoearna returnonqualifyingnaturalgasinvestmentsthatwerenot previouslyincludedinbaserates.Recoverybeginstwo monthsafterthenaturalgasinvestmentsareplacedin serviceandwillcontinueuntiltheinvestmentsareincluded inthebaseratesofafuturenaturalgasratecase.Ameren IllinoisreceivedICCapprovalforitsQIPriderinJanuary 2015,andsubsequentlybeganincludingqualified investmentsandrecordingrevenueunderthisregulatory
framework.InJanuary2015,AmerenIllinoisfiledarequestwiththeICCseekingapprovaltoincreaseitsannualrevenuesfor naturalgasdeliveryservice.Inanattempttoreduce regulatorylag,AmerenIllinois'requestemployeda2016 futuretestyearandalsoincludedaproposaltoimplementa decouplingridermechanismforresidentialandsmall nonresidentialcustomers.Thisdecouplingriderisdesigned toensurethatchangesinnaturalgassalesvolumesdonot affectAmerenIllinois'annualrevenuesfortheserate classes.AdecisionbytheICCinthisproceedingisrequired byDecember2015.
ATXILikeAmerenIllinois,ATXIisamemberofMISO,anditstransmissionrateiscalculatedinaccordancewiththeMISOOATT.Currently,theFERC-allowedreturnon commonequityintheratemakingformulaforMISO transmissionownersis12.38%.However,asdiscussed above,the12.38%returnisthesubjectoftwoFERC complaintproceedingsthatchallengetheallowedreturnon commonequityforMISOtransmissionowners.InJanuary 2015,theFERCscheduledtheinitialcaseforhearing proceedings,requiringaninitialdecisiontobeissuedno laterthanNovember30,2015.AlsoinJanuary2015,FERC approvedanincentiveadderofupto50basispointsonthe allowedbasereturnoncommonequityforATXI's participationinanRTO.ATXIwilldefercollectionofthis incentiveadderuntiltheissuanceofthefinalorder addressingtheinitialMISOcomplaintcase.ATXIhas receivedFERCapprovaltouseacompany-specific, forward-lookingrateformulaframeworkinsettingits transmissionrates.Theseforward-lookingratesare updatedeachJanuarywithforecastedinformation.A reconciliationduringtheyear,whichadjustsfortheactual revenuerequirementandactualsalesvolumes,isusedto adjustbillingratesinasubsequentyear.Additionally,the FERChasapprovedtransmissionrateincentivesrelatingto 8
thethreeMISO-approvedmulti-valueprojectsdiscussedbelow,whichallowconstructionworkinprogresstobe includedinratebase,therebyimprovingthetimelinessof cashrecovery.ThethreeMISO-approvedmulti-valueprojectsbeingdevelopedbyATXIaretheIllinoisRivers,SpoonRiver,and MarkTwainprojects.Thefirstproject,IllinoisRivers, involvestheconstructionofa345-kilovoltlinefromwestern IndianaacrossthestateofIllinoistoeasternMissouri.ATXI hasobtainedacertificateofpublicconvenienceand necessityandprojectapprovalfromtheICCfortheentire IllinoisRiversproject.Afullrangeofconstructionactivities fortheIllinoisRiversprojectbeganin2014.Thefirst sectionsoftheIllinoisRiversprojectareexpectedtobe completedin2016.Thelastsectionofthisprojectis expectedtobecompletedin2019.TheSpoonRiverproject isinnorthwestIllinoisandtheMarkTwainprojectisin northeastMissouri.InAugust2014,ATXIfiledarequestfor acertificateofpublicconvenienceandnecessityandproject approvalfromtheICCfortheSpoonRiverproject.A decisionisexpectedfromtheICCin2015.ATXIexpectsto filearequestforacertificateofpublicconvenienceand necessityandprojectapprovalfromtheMoPSCforthe MarkTwainprojectin2015.Thesetwoprojectsare expectedtobecompletedin2018.Thetotalinvestmentby ATXIinthesethreeprojectsisexpectedtobemorethan
$1.6billion.ForadditionalinformationonAmerenMissouri,AmerenIllinois,andATXIratematters,includingtheFERC complaintcaseschallengingtheallowedreturnoncommon equityforMISOtransmissionowners,seeResultsof OperationsandOutlookinManagement'sDiscussionand AnalysisofFinancialConditionandResultsofOperations underPartII,Item7,QuantitativeandQualitative DisclosuresAboutMarketRiskunderPartII,Item7A,and Note2-RateandRegulatoryMattersandNote15-CommitmentsandContingenciesunderPartII,Item8,of thisreport.GeneralRegulatoryMattersAmerenMissouri,AmerenIllinois,andATXImustreceiveFERCapprovaltoenterintovarioustransactions,suchasissuingshort-termdebtsecuritiesandconducting certainacquisitions,mergers,andconsolidationsinvolving electricutilityholdingcompanies.Inaddition,Ameren Missouri,AmerenIllinois,andATXImustreceive authorizationfromtheapplicablestatepublicutility regulatoryagencytoissuestockandlong-termdebt securities(withmaturitiesofmorethan12months)andto conductmergers,affiliatetransactions,andvariousother
activities.AmerenMissouri,AmerenIllinois,andATXIarealsosubjecttomandatoryreliabilitystandards,including cybersecuritystandardsadoptedbytheFERC,toensurethe reliabilityofthebulkpowerelectricsystem.These standardsaredevelopedandenforcedbyNERCpursuantto authoritygiventoitbytheFERC.IfAmerenoritssubsidiariesweredeterminednottobeincompliancewith anyofthesemandatoryreliabilitystandards,theycould incursubstantialmonetarypenaltiesandothersanctions.UnderPUHCA2005,theFERCandanystatepublicutilityregulatoryagencymayaccessbooksandrecordsof Amerenanditssubsidiariesthataredeterminedtobe relevanttocostsincurredbyAmeren'srate-regulated subsidiariesthatmayaffectjurisdictionalrates.PUHCA 2005alsopermitstheMoPSCandtheICCtorequestthat theFERCreviewcostallocationsbyAmerenServicesto otherAmerencompanies.OperationofAmerenMissouri'sCallawayenergycenterissubjecttoregulationbytheNRC.Itsfacility operatinglicenseexpiresinOctober2024.InDecember 2011,AmerenMissourisubmittedanapplicationtothe NRCtoextendtheenergycenter'soperatinglicenseto 2044.ThereisnodatebywhichtheNRCmustactonthis relicensingrequest.AmerenMissouri'sOsagehydroelectric energycenterandTaumSaukpumped-storage hydroelectricenergycenter,aslicensedprojectsunderthe FederalPowerAct,aresubjecttoFERCregulations affecting,amongotheraspects,thegeneraloperationand maintenanceoftheprojects.ThelicensefortheOsage hydroelectricenergycenterexpiresinMarch2047.The licensefortheTaumSaukpumped-storagehydroelectric energycenterexpiresinJune2044.AmerenMissouri's KeokukenergycenteranditsdamintheMississippiRiver betweenHamilton,Illinois,andKeokuk,Iowa,areoperated underauthoritygrantedbyanActofCongressin1905.Foradditionalinformationonregulatorymatters,seeNote2-RateandRegulatoryMatters,Note10-Callaway EnergyCenter,andNote15-Commitmentsand ContingenciesunderPartII,Item8,ofthisreport.EnvironmentalMattersCertainofouroperationsaresubjecttofederal,state,andlocalenvironmentalstatutesandregulationsrelatingtothesafetyandhealthofpersonnel,thepublic,andthe environment.Theseenvironmentalstatutesandregulations includerequirementsrelatingtoidentification,generation, storage,handling,transportation,disposal,recordkeeping, labeling,reporting,andemergencyresponseinconnection withhazardousandtoxicmaterials;safetyandhealth standards;andenvironmentalprotectionrequirements, includingstandardsandlimitationsrelatingtothedischarge ofairandwaterpollutantsandthemanagementofwaste andbyproductmaterials.Failuretocomplywiththese statutesorregulationscouldhavematerialadverseeffects onus.Wecouldbesubjecttocriminalorcivilpenaltiesby regulatoryagenciesorwecouldbeorderedbythecourtsto payprivateparties.Exceptasindicatedinthisreport,we believethatweareinmaterialcompliancewithexisting statutesandregulationsthatcurrentlyapplytoour
operations.TheEPAisdevelopingandimplementingenvironmentalregulationsthatwillhaveasignificantimpact ontheelectricutilityindustry.Overtime,compliancewith 9
theseregulationscouldbecostlyforcertaincompanies,includingAmerenMissouri,thatoperatecoal-firedpower plants.Significantnewrulesproposedorpromulgated includetheregulationofCO 2emissionsfromexistingpowerplantsthroughtheproposedCleanPowerPlanandfrom newpowerplantsthroughtherevisedNSPS;revised nationalambientairqualitystandardsforozone,fine particulates,SO 2,andNO xemissions;theCSAPR,whichrequiresfurtherreductionsofSO 2emissionsandNO xemissionsfrompowerplants;aregulationgoverning managementofCCRandCCRimpoundments;theMATS, whichrequirereductionofemissionsofmercury,toxic metals,andacidgasesfrompowerplants;revisedNSPSfor particulatematter,SO 2,andNO xemissionsfromnewsources;neweffluentstandardsapplicabletowastewater dischargesfrompowerplantsandnewregulationsunder theCleanWaterActthatcouldrequiresignificantcapital expenditures,suchasmodificationstowaterintake structuresornewcoolingtowersatAmerenMissouri's energycenters.Certainofthesenewandproposed regulations,ifadopted,arelikelytobechallengedthrough litigation,sotheirultimateimplementation,aswellasthe timingofanysuchimplementation,isuncertain.Although manydetailsofthefutureregulationsareunknown,the combinedeffectsofthenewandproposedenvironmental regulationscouldresultinsignificantcapitalexpenditures andincreasedoperatingcostsforAmerenandAmeren Missouri.Compliancewiththeseenvironmentallawsand regulationscouldbeprohibitivelyexpensive,resultinthe closureoralterationoftheoperationofsomeofAmeren Missouri'senergycenters,orrequirecapitalinvestment.
AmerenandAmerenMissouriexpectthesecostswouldbe recoverablethroughrates,subjecttoMoPSCprudence review,butthenatureandtimingofcosts,aswellasthe applicableregulatoryframework,couldresultinregulatory lag.Thesenewandproposedenvironmentalregulations couldalsoimpactthecostof,anddemandfor,powerand naturalgas,whichisacquiredforAmerenMissouri's naturalgascustomersandAmerenIllinois'electricand naturalgascustomers.Foradditionaldiscussionofenvironmentalmatters,includingNOx,SO 2,andmercuryemissionreductionrequirements,proposedreductionstoCO 2 emissions,remediationefforts,CCRmanagementregulations,anda discussionoftheEPA'sallegationsofviolationsoftheClean AirActandMissourilawinconnectionwithprojectsat AmerenMissouri'sRushIslandenergycenter,seeLiquidity andCapitalResourcesinManagement'sDiscussionand AnalysisofFinancialConditionandResultsofOperations underPartII,Item7,andNote15-Commitmentsand ContingenciesunderPartII,Item8,ofthisreport.TRANSMISSIONANDSUPPLYOFELECTRICPOWERAmerenownsanintegratedtransmissionsystemthatiscomprisedofthetransmissionassetsofAmerenMissouri,AmerenIllinois,andATXI.Amerenalsooperates twobalancingauthorityareas:AMMOandAMIL.During 2014,thepeakdemandwas8,199megawattsinAMMOand8,913megawattsinAMIL.TheAmerentransmission systemdirectlyconnectswith15otherbalancingauthority areasfortheexchangeofelectricenergy.AmerenMissouri,AmerenIllinois,andATXIaretransmission-owningmembersofMISO.AmerenMissouri isauthorizedbytheMoPSCtoparticipateinMISOthrough May2018.AmerenMissouriisrequiredtofileastudywith theMoPSCinNovember2017,asithasdoneperiodically sinceitbeganparticipatinginMISOin2003,thatevaluates thecostsandbenefitsofAmerenMissouri'scontinued participationinMISObeyondMay2018.TheAmerenCompaniesaremembersoftheSERC.TheSERCisresponsibleforthebulkelectricpowersystem inallorportionsofMissouri,Illinois,Arkansas,Kentucky, Tennessee,NorthCarolina,SouthCarolina,Georgia, Mississippi,Alabama,Louisiana,Virginia,Florida, Oklahoma,Iowa,andTexas.Ownersandoperators, includingtheAmerenCompanies,ofthebulkelectricpower systemaresubjecttomandatoryreliabilitystandards promulgatedbytheNERCanditsregionalentities,suchas theSERC,whichareallenforcedbytheFERC.AmerenMissouriAmerenMissouri'selectricsupplyisprimarilygeneratedfromitsenergycenters.FactorsthatcouldcauseAmerenMissouritopurchasepowerinclude,amongother things,absenceofsufficientownedgeneration,energy centeroutages,thefulfillmentofrenewableenergyportfolio requirements,thefailureofsupplierstomeettheirpower supplyobligations,extremeweatherconditions,andthe availabilityofpoweratacostlowerthanitsgenerationcost.AmerenMissouricontinuestoevaluateitslonger-termneedsfornewbaseloadcapacity,includingnuclearand peakingelectricgenerationcapacity.Thepotentialneedfor newenergycenterconstructionisdependentonseveralkey factors,includingcontinuationof,andcustomer participationin,energyefficiencyprogramsbeyond2015, loadgrowth,andthepotentialformorestringent environmentalregulationofcoal-firedpowerplants,which couldleadtotheretirementofcurrentbaseloadassetsor alterationsinthemannerinwhichthoseassetsoperate.
Becauseofthesignificanttimerequiredtoplan,acquire permitsfor,andbuildabaseloadenergycenter,Ameren Missouricontinuestostudyalternativesandistakingsteps topreserveoptionstomeetfuturedemand.Stepsinclude evaluatingthepotentialforfurthercustomerenergy efficiencyprogramsandevaluatingpotentialsitesfor natural-gas-firedgeneration.Additionalstepsinclude maintainingoptionsforfuturenucleargenerationand obtaininganoperatinglicenseextensionfortheexisting Callawayenergycenterfrom2024until2044.Ameren Missouriisalsoexploringoptionstoexpandrenewable generationandfurtherdiversifyitsgenerationportfolio.AmerenMissourifileditsintegratedresourceplanwiththeMoPSCinOctober2014.Theintegratedresourceplanis a20-yearplanthatsupportsamorefuel-diverseenergy portfolioinMissouri,includingcoal,solar,wind,naturalgas 10 andnuclearpower.Theplanincludesexpandingrenewablegeneration,retiringcoal-firedgenerationasenergycenters reachtheendoftheirusefullives,andaddingnatural-gas-firedcombinedcyclegeneration.AmerenMissouri continuestostudyalternatives,includingadditional customerenergyefficiencyprograms,thatcouldhelpdefer newenergycenterconstruction.SeealsoOutlookinManagement'sDiscussionandAnalysisofFinancialConditionandResultsofOperations underPartII,Item7,Note2-RateandRegulatoryMatters, Note10-CallawayEnergyCenter,andNote15-CommitmentsandContingenciesunderPartII,Item8,of thisreport.AmerenIllinoisAnyelectricsupplypurchasedbyAmerenIllinoisforitsretailcustomerscomeseitherthroughprocurementprocessesconductedbytheIPAorthroughmarkets operatedbyMISO.TheIPAadministersanRFPprocessthroughwhichAmerenIllinoisprocuresitsexpectedsupply obligation.Thepowerandrelatedprocurementcosts incurredbyAmerenIllinoisarepasseddirectlytoits customersthroughacostrecoverymechanism.UnderIllinoislaw,transmissionanddistributionserviceratesareregulated,whileelectriccustomersare allowedtopurchasepowerfromanalternativeretailelectric supplier.In2014,approximately741,000retailcustomers representing74%ofAmerenIllinois'annualretail kilowatthoursaleshadelectedtopurchasetheirelectricity fromalternativeretailelectricsuppliers.AmerenIllinois continuestocollectdeliverychargesfordistributionand transmissionservicesfromcustomerswhopurchase electricityfromalternativeretailelectricsuppliers.SeeNote2-RateandRegulatoryMatters,Note14-RelatedPartyTransactionsandNote15-Commitments andContingenciesunderPartII,Item8,ofthisreportfor additionalinformationonpowerprocurementinIllinois.POWERGENERATIONThefollowingtablepresentsthesourceofAmeren'sandAmerenMissouri'selectricgeneration,excludingpurchasedpower,fortheyearsendedDecember31,2014,2013,and2012:
CoalNuclearNaturalGas/OilRenewables (a)2014...............................................76%21%(b)3%
2013...............................................7719(b)3 2012...............................................732412(a)RenewablepowergenerationincludesproductionfromAmerenMissouri'shydroelectric,methanegas,andsolarenergycentersbutexcludespurchasedrenewableenergycredits.(b)Lessthan1%oftotalfuelsupply.ThefollowingtablepresentsthecostoffuelsforelectricgenerationfortheyearsendedDecember31,2014,2013,and 2012:CostofFuels(dollarspermmbtu)201420132012 Coal (a).......................................................................$2.151$2.050$1.925 Nuclear......................................................................
0.9180.9420.964Naturalgas (b)..................................................................
11.2267.9074.517Weightedaverage-allfuels (c)....................................................$1.936$1.874$1.743(a)Representsthecostofcoalandthecostsfortransportation,whichincludehedgesforrailroaddieselfuelsurcharges.(b)Representsthecostofnaturalgasandfixedandvariablecostsfortransportation,storage,balancing,andfuellossesfordeliverytotheenergy center.(c)Representsallcosts,includingtransportation,forfuelsusedinourenergycenters,includingcoal,nuclear,naturalgas,methanegas,oil,andpropane.Methanegas,oil,andpropanearenotindividuallylistedinthistablebecausetheiruseisminimal.
CoalAmerenMissourihasanongoingneedforcoalforgeneration,soitpursuesaprice-hedgingstrategyconsistentwiththisrequirement.AmerenMissourihas agreementsinplacetopurchasecoalandtotransportitto energycenters.CoalsupplyagreementsforAmeren Missouriexpireattheendof2017.Coaltransport agreementsforAmerenMissouriexpireattheendof2019.
AmerenMissourihascoaltransportagreementswithUnion PacificRailroadandBurlingtonNorthernSantaFeRailway.
AsofDecember31,2014,AmerenMissourihadprice-hedged100%ofitsexpectedcoalsupplyandcoal transportationrequirementsforgenerationin2015.Ameren Missouriburned20milliontonsofcoalin2014.About98%ofAmerenMissouri'scoalispurchasedfromthePowderRiverBasininWyoming.Theremaining coalistypicallypurchasedfromtheIllinoisBasin.Inventory maybeadjustedbecauseofgenerationlevelsor uncertaintiesofsupplyduetopotentialworkstoppages, delaysincoaldeliveries,equipmentbreakdowns,andother factors.DeliveriesfromthePowderRiverBasinhave 11 occasionallybeenrestrictedbecauseofrailcongestionandmaintenance,derailments,andweather.Asof December31,2014,coalinventoriesforAmerenMissouri werebelowtargetedlevelsduetodeliverydelays.
DisruptionsincoaldeliveriescouldcauseAmerenMissouri topursueastrategythatcouldincludereducingsalesof powerduringlow-marginperiods,buyinghigher-costfuels togeneraterequiredelectricity,andpurchasingpowerfrom othersources.
NuclearTheproductionofnuclearfuelinvolvestheminingandmillingofuraniumoretoproduceuraniumconcentrates,theconversionofuraniumconcentratestouranium hexafluoridegas,theenrichmentofthatgas,theconversion oftheenricheduraniumhexafluoridegasintouranium dioxidefuelpelletsandthefabricationintousablefuel assemblies.AmerenMissourihasenteredintouranium, uraniumconversion,uraniumenrichment,andfabrication contractstoprocurethefuelsupplyforitsCallawaynuclear energycenter.TheCallawayenergycenterrequiresrefuelingat18-monthintervals.Thelastrefuelingwascompletedin November2014.Thenextrefuelingisscheduledforspring 2016.Thereisnorefuelingscheduledfor2015and2018.
AmerenMissouricurrentlyhasagreementsorinventoriesto price-hedgeapproximately97%,71%,and60%of Callaway's2016,2017,and2019refuelingrequirements, respectively.AmerenMissourihasuranium(concentrate andhexafluoride)inventoriesandsupplycontracts sufficienttomeetallofitsuraniumandconversion requirementsthroughatleast2017.AmerenMissourihas enricheduraniuminventoriesandenrichmentsupply contractssufficienttosatisfyenrichmentrequirements throughatleast2019andfuelfabricationservicecontracts throughatleast2019.AmerenMissouriexpectstoenter intoadditionalcontractstopurchasenuclearfuel.The nuclearfuelmarketsarecompetitive,andpricescanbe volatile;however,AmerenMissouridoesnotanticipateany significantproblemsinmeetingitsfuturesupply
requirements.NaturalGasSupplyforGenerationTomaintaindeliveriestonatural-gas-firedenergycentersthroughouttheyear,especiallyduringthesummerpeakdemand,AmerenMissouri'sportfolioofnaturalgas supplyresourcesincludesfirmtransportationcapacityand firmno-noticestoragecapacityleasedfrominterstate pipelines.AmerenMissouriprimarilyusestheinterstate pipelinesystemsofPanhandleEasternPipeLineCompany, TrunklineGasCompany,NaturalGasPipelineCompanyof America,andMississippiRiverTransmissionCorporationto transportnaturalgastoenergycenters.Inadditionto physicaltransactions,AmerenMissouriusesfinancial instruments,includingsomeintheNYMEXfuturesmarket andsomeintheOTCfinancialmarkets,tohedgetheprice paidfornaturalgas.AmerenMissouri'snaturalgasprocurementstrategyisdesignedtoensurereliableandimmediatedeliveryof naturalgastoitsenergycenters.Thisstrategyis accomplishedbyoptimizingtransportationandstorage optionsandbyminimizingcostandpriceriskthrough varioussupplyandprice-hedgingagreementsthatallow accesstomultiplegaspools,supplybasins,andstorage services.AsofDecember31,2014,AmerenMissourihad price-hedgedabout3%ofitsexpectednaturalgassupply requirementsforgenerationin2015.RenewableEnergyIllinoisandMissourihaveenactedlawsrequiringelectricutilitiestoincluderenewableenergyresourcesintheirportfolios.Illinoisrequiredrenewableenergy resourcestoequalorexceed2%ofthetotalelectricitythat AmerenIllinoissuppliedtoitseligibleretailcustomersasof June1,2008,withthatpercentageincreasingto10%by June1,2015,andto25%byJune1,2025.Forthe2014 planyear,AmerenIllinoismetitsrequirementthat9%ofits totalelectricityforeligibleretailcustomersbeprocured fromrenewableenergyresources.Basedoncurrent forecasts,AmerenIllinoishascommittedtoprocure sufficientrenewableenergycreditsundertheIPA-administeredprocurementprocesstomeettherenewable energyportfoliorequirementthroughatleastMay2017.
AmerenIllinoishasenteredintoagreementsthrough2032 withrenewableenergysupplierstoobtainrenewableenergy credits.Approximately65%ofthe2015planyear renewableenergyrequirementisexpectedtobemet throughtheseagreements.Theremainingrequirementwill bemetthroughIPAprocurements,whichresultedin contractsthathavetermsthroughDecember2017.InMissouri,utilitiesarerequiredtopurchaseorgenerateelectricityequaltoatleast2%ofnativeloadsales fromrenewablesources,withthatpercentageincreasingto atleast15%by2021,subjecttoa1%annuallimiton customerrateimpacts.Atleast2%ofeachrenewable energyportfoliorequirementmustbederivedfromsolar energy.In2014,AmerenMissourimetitsrequirementto purchaseorgenerateatleast5%ofitsnativeloadsales fromrenewableenergyresources.AmerenMissouriexpects tosatisfythenonsolarrequirementinto2018withits Keokukenergycenter,itsMarylandHeightsenergycenter, andwitha102-megawattpowerpurchaseagreement throughJune2024withawindfarmoperatorinIowa.The MarylandHeightsenergycentergenerateselectricityby burningmethanegascollectedfromalandfill.Ameren Missouriismeetingthesolarenergyrequirementthrough thepurchaseofsolar-generatedrenewableenergycredits fromcustomer-installedsystemsandgenerationfromits O'Fallonenergycenter.UnderthesameMissouristatutethatrequiresutilitiestopurchaseorgenerateelectricityfromrenewablesources, AmerenMissouriisrequiredtohavearebateprogramto provideanincentiveforcustomerstoinstallsolar generationontheirpremises.Inaccordancewiththestatute anda2013MoPSCorder,AmerenMissouriisrequiredto 12 provide$92millionofsolarrebatesby2020,whichwassubstantiallycompletedbyDecember31,2014.Also includedinits2013order,theMoPSCauthorizedAmeren MissouritoemployatrackertoallowAmerenMissourito recordthecostsitincurredunderitssolarrebateprogram asaregulatoryasset.AmerenMissouriexpectstorecover thecostsoftheserebates,alongwiththeestimated
$9millioncarryingcostoftheregulatoryasset,overa three-yearperiodbeginningwiththeeffectivedateofrates initsJuly2014electricratecase.EnergyEfficiencyAmerenMissouriandAmerenIllinoishaveimplementedenergyefficiencyprogramstoeducateandhelptheircustomersbecomemoreefficientusersofenergy.In Missouri,theMEEIAestablishedaregulatoryframeworkthat, amongotherthings,allowselectricutilitiestorecovercosts relatedtoMoPSC-approvedcustomerenergyefficiency programs.ThelawrequirestheMoPSCtoensurethata utility'sfinancialincentivesarealignedtohelpcustomersuse energymoreefficiently,toprovidetimelycostrecovery,and toprovideearningsopportunitiesassociatedwithcost-effectiveenergyefficiencyprograms.Missouridoesnothave alawmandatingenergyefficiencystandards.TheMoPSC'sDecember2012electricrateorderapprovedAmerenMissouri'simplementationoftheMEEIA megawatthoursavingstargets,customerenergyefficiency programs,andassociatedcostrecoverymechanismsand incentiveawards.AmerenMissouriinvested$76millionin theseprogramsthrough2014andexpectstoinvestan additional$71millionin2015.AMEEIAriderallows AmerenMissouritocollectfromorrefundtocustomers anyannualdifferenceintheactualamountsincurredand theamountscollectedfromcustomersfortheMEEIA programcostsanditslostrevenues.Additionally,theMEEIAprovidesforincentiveawardsthatwouldallowAmerenMissouritoearnadditional revenuesbyachievingcertainenergyefficiencygoals.
Underitscurrentenergyefficiencyplan,whichiseffective for2013through2015,AmerenMissouricanearn approximately$19millionif100%ofitsenergyefficiency goalsareachievedduringthattimeperiod,withthe potentialtoearnmoreifenergysavingsexceedthosegoals.
AmerenMissourimustachieveatleast70%ofitsenergy efficiencygoalsbeforeitcanearnanyincentiveaward.The recoveryoftheincentiveawardfromcustomers,ifthe energyefficiencygoalsareachieved,isexpectedin2017 throughtheabove-mentionedrider.InDecember2014,AmerenMissourifiledanenergyefficiencyplanwiththeMoPSCundertheMEEIA.Thisfiling proposedathree-yearplanthatincludesaportfolioof customerenergyefficiencyprogramsalongwithacost recoverymechanism.Iftheplanisapproved,beginningin January2016,AmerenMissouriintendstoinvest
$135millionoverthreeyearsintheproposedcustomer energyefficiencyprograms.AmerenMissourirequested continueduseofaMEEIAriderthatallowsittocollectfrom orrefundtocustomersanydifferenceintheactualamountsincurredandtheamountscollectedfromcustomersforthe MEEIAprogramcostsanditslostrevenues.Inaddition, AmerenMissourirequestedincentivestoearnadditional revenuesbyachievingcertainenergyefficiencygoals, includingapproximately$25millionif100%ofitsenergy efficiencygoalsareachievedduringthethree-yearperiod.
SeeNote2-RateandRegulatoryMattersunderPartII, Item8,ofthisreportforadditionalinformation.IllinoishasenactedalawrequiringAmerenIllinoistooffercustomerenergyefficiencyprograms.Thelawalso allowsrecoverymechanismsoftheprograms'costs.The ICChasissuedordersapprovingAmerenIllinois'electric andnaturalgasenergyefficiencyplansaswellascost recoverymechanismsbywhichprogramcostscanbe recoveredfromcustomers.Additionally,aspartofitsIEIMA upgrades,AmerenIllinoisexpectstoinvest$360millionin smartgridinfrastructure,includingsmartmetersthat enablecustomerstoimproveenergyefficiency.Ameren Illinoisbegantheinstallationofsmartmetersin2014.NATURALGASSUPPLYFORDISTRIBUTIONAmerenMissouriandAmerenIllinoisareresponsibleforthepurchaseanddeliveryofnaturalgastotheirutilitycustomers.AmerenMissouriandAmerenIllinoiseach developandmanageaportfolioofnaturalgassupply resources.Theseresourcesincludefirmgassupplyunder termagreementswithproducers,interstateandintrastate firmtransportationcapacity,firmstoragecapacityleased frominterstatepipelines,andon-systemstoragefacilitiesto maintainnaturalgasdeliveriestocustomersthroughoutthe yearandespeciallyduringpeakdemandperiods.Ameren MissouriandAmerenIllinoisprimarilyusePanhandle EasternPipeLineCompany,TrunklineGasCompany, NaturalGasPipelineCompanyofAmerica,MississippiRiver TransmissionCorporation,NorthernBorderPipeline Company,andTexasEasternTransmissionCorporation interstatepipelinesystemstotransportnaturalgastotheir systems.Inadditiontotransactionsrequiringphysical delivery,financialinstruments,includingthoseenteredinto intheNYMEXfuturesmarketandintheOTCfinancial markets,areusedtohedgethepricepaidfornaturalgas.
Naturalgaspurchasecostsarepassedontocustomersof AmerenMissouriandAmerenIllinoisunderPGAclauses, subjecttoprudencereviewsbytheMoPSCandtheICC.As ofDecember31,2014,AmerenMissourihadprice-hedged 80%andAmerenIllinoishadprice-hedged78%oftheir expected2015naturalgassupplyrequirements.Foradditionalinformationonourfuelandpurchasedpowersupply,seeResultsofOperations,Liquidityand CapitalResourcesandEffectsofInflationandChanging PricesinManagement'sDiscussionandAnalysisof FinancialConditionandResultsofOperationsunderPartII, Item7,ofthisreport.AlsoseeNote1-Summaryof SignificantAccountingPolicies,Note7-Derivative FinancialInstruments,Note10-CallawayEnergyCenter, Note14-RelatedPartyTransactions,andNote15-CommitmentsandContingenciesunderPartII,Item8of thisreport.
13 INDUSTRYISSUESWearefacingissuescommontotheelectricandnaturalgasutilityindustry.Theseissuesinclude:
political,regulatory,andcustomerresistancetohigher rates;thepotentialforchangesinlaws,regulations,and policiesatthestateandfederallevels; taxlawchangesthatacceleratedepreciation deductions,whichreducecurrenttaxpaymentsbut alsoresultinratebasereductionsandlimittheability toclaimotherdeductionsandusecarryforwardtax
benefits;cybersecurityrisks,includinglossofoperational controlofenergycentersandelectricandnaturalgas transmissionanddistributionsystemsand/orlossof data,suchasutilitycustomerdataandaccount
information; thepotentialformoreintensecompetitionin generation,supply,anddistribution,includingnew
technologies; pressureoncustomergrowthandusageinlightof economicconditionsandenergyefficiencyinitiatives; changesinthestructureoftheindustryasaresultof changesinfederalandstatelaws,includingthe formationandgrowthofindependenttransmission
entities;pressuretoreducetheallowedreturnoncommon equityonFERC-regulatedelectrictransmissionassets; theavailabilityoffuelandfluctuationsinfuelprices; theavailabilityofqualifiedlaborandmaterial,andrising
costs;theavailabilityofaskilledworkforce,including retainingthespecializedskillsofthosewhoarenearing
retirement; regulatorylag; theinfluenceofmacroeconomicfactors,suchasyields onUnitedStatesTreasurysecuritiesandallowedrates ofreturnonequityprovidedbyregulators; higherlevelsofinfrastructureinvestmentscouldresult innegativeordecreasedfreecashflows,definedas cashflowsfromoperatingactivitieslesscashflows frominvestingactivitiesanddividendspaid; publicconcernaboutthesitingofnewfacilities; complexnewandproposedenvironmentallaws, regulationsandrequirements,includingairandwater qualitystandards,mercuryemissionsstandards,CCR managementrequirements,andgreenhousegas
limitations; publicconcernaboutthepotentialimpactstothe environmentfromthecombustionoffossilfuels; aginginfrastructureandtheneedtoconstructnew powergeneration,transmissionanddistribution facilities,whichhavelongtimeframesforcompletion, withlittlelong-termabilitytopredictpowerand commoditypricesandregulatoryrequirements; legislationorproposalsforprogramstoencourageor mandateenergyefficiencyandrenewablesourcesof power,suchassolar,andthemacroeconomicdebate overwhoshouldpayforthoseprograms; publicconcernaboutnucleargenerationand decommissioningandthedisposalofnuclearwaste;
andconsolidationofelectricandnaturalgasutility
companies.Wearemonitoringtheseissues.Exceptasotherwisenotedinthisreport,weareunabletopredictwhatimpact,if any,theseissueswillhaveonourresultsofoperations, financialposition,orliquidity.Foradditionalinformation, seeRiskFactorsunderPartI,Item1A,andOutlookin Management'sDiscussionandAnalysisofFinancial ConditionandResultsofOperationsunderPartII,Item7, andNote2-RateandRegulatoryMattersandNote15-CommitmentsandContingenciesunderPartII,Item8,of thisreport.
14 OPERATINGSTATISTICSThefollowingtablespresentkeyelectricandnaturalgasoperatingstatisticsforAmerenforthepastthreeyears:ElectricOperatingStatistics-YearEndedDecember31,201420132012ElectricSales-kilowatthours(inmillions):AmerenMissouri:
Residential
....................................................................
13,64913,56213,385 Commercial
...................................................................
14,64914,63414,575 Industrial
.....................................................................
8,6008,7098,660 Off-system
....................................................................
6,1706,1287,293 Other........................................................................
124 125 126AmerenMissouritotal
.........................................................
43,19243,15844,039AmerenIllinois:
ResidentialPowersupplyanddeliveryservice
...............................................
4,6625,4749,507Deliveryserviceonly
..........................................................
7,2226,3102,103 CommercialPowersupplyanddeliveryservice
...............................................
2,5352,6062,985Deliveryserviceonly
..........................................................
9,6439,5419,175 IndustrialPowersupplyanddeliveryservice
...............................................
1,7411,6671,595Deliveryserviceonly
..........................................................
10,57610,86111,753 Other........................................................................
518 522 523AmerenIllinoistotal
..........................................................
36,89736,98137,641Eliminateaffiliatesales
............................................................
(67)(82)-Amerentotal
................................................................
80,02280,05781,680ElectricOperatingRevenues(inmillions):
AmerenMissouri:
Residential
....................................................................$1,417$1,428$1,297 Commercial
...................................................................
1,2031,2161,088 Industrial
.....................................................................
475 491 435 Off-system
....................................................................
173 183 208 Other........................................................................
120 61 104AmerenMissouritotal
.........................................................$3,388$3,379$3,132AmerenIllinois:
ResidentialPowersupplyanddeliveryservice
...............................................$468$501$961Deliveryserviceonly
..........................................................
308 282 90 CommercialPowersupplyanddeliveryservice
...............................................
233 215 254Deliveryserviceonly
..........................................................
185 184 177 IndustrialPowersupplyanddeliveryservice
...............................................
90 70 57Deliveryserviceonly
..........................................................
42 44 46 Other........................................................................
196 165 154AmerenIllinoistotal
..........................................................$1,522$1,461$1,739 ATXI:Transmissionservices
...........................................................$33$19$9Eliminateaffiliaterevenues
.........................................................
(30)(27)(23)Amerentotal
................................................................$4,913$4,832$4,857 15 ElectricOperatingStatistics-YearEndedDecember31,201420132012ElectricGeneration-AmerenMissouri-kilowatthours(inmillions)
.........................
43,47443,21344,658Pricepertonofdeliveredcoal(average)-AmerenMissouri
...............................$37.36$36.19$34.21SourceofAmerenMissourienergysupply:
Coal.........................................................................
73.5%74.1%70.6%
Nuclear......................................................................
20.618.623.3 Hydroelectric
..................................................................
2.22.92.1Naturalgas
...................................................................
0.20.41.2Methanegas
..................................................................
0.10.10.1Purchased-Wind
..............................................................
0.80.70.7Purchased-Other
..............................................................
2.63.22.0 100.0%100.0%100.0%GasOperatingStatistics-YearEndedDecember31,201420132012NaturalGasSales-dekatherms(inmillions):AmerenMissouri:
Residential
.................................................................
8 86 Commercial
.................................................................
4 43 Industrial
...................................................................
1 11 Transport..................................................................
7 66AmerenMissouritotal
.......................................................
201916AmerenIllinois:
Residential
.................................................................
666249 Commercial
.................................................................
232117 Industrial
...................................................................
3 65 Transport..................................................................
918786AmerenIllinoistotal
........................................................
183176157Amerentotal
..............................................................
203195173NaturalGasOperatingRevenues(inmillions):
AmerenMissouri:
Residential
.................................................................$102$102$85 Commercial
.................................................................
404236 Industrial
...................................................................
7 88Transportandother
..........................................................
15910AmerenMissouritotal
.......................................................$164$161$139AmerenIllinois:
Residential
.................................................................$675$611$547 Commercial
.................................................................
208185172 Industrial
...................................................................
232624Transportandother
..........................................................
702543AmerenIllinoistotal
........................................................$976$847$786Eliminateaffiliaterevenues
.......................................................
-(2)(1)Amerentotal
..............................................................$1,140$1,006$924AVAILABLEINFORMATIONTheAmerenCompaniesmakeavailablefreeofchargethroughAmeren'swebsite(www.ameren.com)theirannualreportsonForm10-K,quarterlyreportsonForm10-Q, currentreportsonForm8-K,eXtensibleBusinessReporting Language(XBRL)documents,andanyamendmentsto thosereportsfiledwithorfurnishedtopursuanttoSections 13(a)or15(d)oftheExchangeActassoonasreasonably possibleaftersuchreportsareelectronicallyfiledwith,or furnishedto,theSEC.Thesedocumentsarealsoavailable throughanInternetwebsitemaintainedbytheSEC (www.sec.gov).Amerenalsousesitswebsiteasachannel ofdistributionformaterialinformationabouttheAmerenCompanies.Financialandothermaterialinformation regardingtheAmerenCompaniesisroutinelypostedtoand accessibleatAmeren'swebsite.TheAmerenCompaniesalsomakeavailablefreeofchargethroughAmeren'swebsitethechartersofAmeren's boardofdirectors'auditandriskcommittee,human resourcescommittee,nominatingandcorporate governancecommittee,financecommittee,andnuclear oversightandenvironmentalcommittee;thecorporate governanceguidelines;apolicyregardingcommunications totheboardofdirectors;apolicyandprocedureswith respecttorelated-persontransactions;acodeofethicsfor principalexecutiveandseniorfinancialofficers;acodeof 16 businessconductapplicabletoalldirectors,officersandemployees;andadirectornominationpolicythatappliesto theAmerenCompanies.TheinformationonAmeren's website,oranyotherwebsitereferencedinthisreport,is notincorporatedbyreferenceintothisreport.ITEM1A.RISKFACTORSInvestorsshouldreviewcarefullythefollowingmaterialriskfactorsandtheotherinformationcontainedinthisreport.TherisksthattheAmerenCompaniesfacearenot limitedtothoseinthissection.Theremaybefurtherrisks anduncertaintiesthatarenotpresentlyknownorthatare notcurrentlybelievedtobematerialthatmayadversely affecttheresultsofoperations,financialposition,and liquidityoftheAmerenCompanies.REGULATORYANDLEGISLATIVERISKSWearesubjecttoextensiveregulationofourbusinesses,whichcouldadverselyaffectourresultsofoperations,financialposition,andliquidity.Wearesubjecttoextensivefederal,state,andlocalregulation.Thisextensiveregulatoryframework,somebut notallofwhichismorespecificallyidentifiedinthe followingriskfactors,regulates,amongothermatters,the electricandnaturalgasutilityindustries;rateandcost structureofutilities;operationofnuclearenergycenters; constructionandoperationofgeneration,transmission,and distributionfacilities;acquisition,disposal,depreciationand amortizationofassetsandfacilities;transmissionreliability; andpresentorprospectivewholesaleandretail competition.Intheplanningandmanagementofour operations,wemustaddresstheeffectsofexistingand proposedlawsandregulationsandpotentialchangesinthe regulatoryframework,includinginitiativesbyfederaland statelegislatures,RTOs,utilityregulators,andtaxing authorities.Significantchangesinthenatureofthe regulationofourbusinessescouldrequirechangestoour businessplanningandmanagementofourbusinessesand couldadverselyaffectourresultsofoperations,financial position,andliquidity.Failuretoobtainadequateratesor regulatoryapprovalsinatimelymanner;failuretoobtain necessarylicensesorpermitsfromregulatoryauthorities; theimpactofnewormodifiedlaws,regulations,standards, interpretations,orotherlegalrequirements;orincreased compliancecostscouldadverselyaffectourresultsof operations,financialposition,andliquidity.Theelectricandnaturalgasratesthatweareallowedtochargearedeterminedthroughregulatory proceedings,whicharesubjecttointerventionand appealandalsotolegislativeactions,whicharelargely outsideofourcontrol.Anyeventsthatpreventusfrom recoveringourcostsorfromearningadequatereturnson ourinvestmentscouldadverselyaffectourresultsof operations,financialposition,andliquidity.Theratesthatweareallowedtochargeforourutilityservicessignificantlyinfluenceourresultsofoperations,financialposition,andliquidity.Theelectricandnaturalgas utilityindustriesareextensivelyregulated.Theutilityrates chargedtoourcustomersaredeterminedbygovernmental entities,includingtheMoPSC,theICC,andtheFERC.Many factorsinfluencedecisionsbytheseentities,includingthe costofprovidingservice,theprudencyofexpenditures,the qualityofservice,regulatorystaffknowledgeand experience,customerintervention,economicconditions, publicpolicy,aswellassocialandpoliticalviews.Decisions madebythesegovernmentalentitiesregardingratesare largelyoutsideofourcontrol.Weareexposedtoregulatory lagtovaryingdegreesbyjurisdiction,which,ifunmitigated, couldhaveamaterialadverseeffectonourresultsof operations,financialposition,andliquidity.Rateordersare alsosubjecttoappeal,whichcreatesadditionaluncertainty astotherateswewillultimatelybeallowedtochargefor ourservices.Fromtimetotime,ourregulatorswillapprove trackers,riders,orothermechanismsthatallowelectricor naturalgasratestobeadjustedwithoutatraditionalrate proceeding.Thesemechanismsarenotpermanentand couldbechangedorterminated.AmerenMissouri'selectricandnaturalgasutilityratesandAmerenIllinois'naturalgasutilityratesaretypically establishedinregulatoryproceedingsthattakeupto 11monthstocomplete.Ratesestablishedinthose proceedingsforAmerenMissouriareprimarilybasedon historicalcostsandrevenues.Naturalgasratesestablished inthoseproceedingsforAmerenIllinoismaybebasedon historicalorestimatedfuturecostsandrevenues.Thus,the ratesthatautilityisallowedtochargemaynotmatchits costsatanygiventime.Ratesincludeanallowedrateofreturnoninvestmentsdeterminedbytheregulator.Althoughrateregulationis premisedonprovidinganopportunitytoearnareasonable rateofreturnoninvestedcapital,therecanbenoassurance thattheregulatorwilldeterminethatourcostswere prudentlyincurredorthattheregulatoryprocesswillresult inratesthatwillproducefullrecoveryofsuchcostsor provideforanadequatereturnonthoseinvestments.Inyearswhencapitalinvestmentsandoperationscostsriseorcustomerusagedeclines,wemaynotbeable toearntheallowedreturnestablishedbytheregulator.This couldresultinthedeferraloreliminationofplannedcapital investments,whichcouldreducetheratebaseinvestments onwhichweearnarateofreturn.Additionally,increasing ratescouldresultinregulatoryandlegislativeactions,as wellascompetitiveandpoliticalpressures,allofwhich couldadverselyaffectourresultsofoperations,financial position,andliquidity.Asaresultofitsparticipationintheperformance-basedformularatemakingprocessestablishedpursuant totheIEIMA,AmerenIllinois'returnonequityforits electricdistributionbusinessisdirectlycorrelatedto yieldsonUnitedStatesTreasurybonds.Additionally, AmerenIllinoisisrequiredtoachieveperformance objectives,capitalspendinglevels,andjobcreation targets.Failuretomeettheserequirementscould 17 adverselyaffectAmeren'sandAmerenIllinois'resultsofoperations,financialposition,andliquidity.AmerenIllinoisisparticipatingintheperformance-basedformularatemakingprocessestablishedpursuantto theIEIMAforitselectricdistributionbusiness.TheICC annuallyreviewsAmerenIllinois'performance-basedrate filingsundertheIEIMAforreasonablenessandprudency.If theICCweretoconcludethatAmerenIllinois'incurred costswerenotprudentlyincurred,theICCwoulddisallow recoveryofsuchcosts.Thereturnonequitycomponentoftheformularateisequaltotheaverageforthecalendaryearofthemonthly yieldsof30-yearUnitedStatesTreasurybondsplus 580basispoints.Therefore,AmerenIllinois'annualreturn onequityundertheformularatemakingprocessforits electricdistributionbusinessisdirectlycorrelatedtoyields onsuchbonds,whichareoutsideofAmerenIllinois' control.A50basispointchangeintheaveragemonthly yieldsofthe30-yearUnitedStatesTreasurybondswould resultinanestimated$6millionchangeinAmeren'sand AmerenIllinois'2015netincome.AmerenIllinoisisalsosubjecttoperformancestandards.Failuretoachievethestandardswouldresultina reductioninthecompany'sallowedreturnonequity calculatedundertheformula.TheIEIMAprovidesforreturn onequitypenaltiestotaling30basispointsin2015, 34basispointsineachyearfrom2016through2018,and 38basispointsineachyearfrom2019through2022ifthe performancestandardsarenotmet.Between2012and2021,AmerenIllinoisisrequiredtoinvest$625millionincapitalprojectsincrementaltoits averageelectricdeliverycapitalprojectsinvestmentsof
$228millionforcalendaryears2008through2010,inorder tomodernizeitsdistributionsystem.AmerenIllinoisis subjecttomonetarypenaltiesif450additionaljobsarenot createdinIllinoisduringthepeakprogramyear.Unlessitisextended,theIEIMAformularatemakingprocesswillexpirein2017.Whentheperformance-based formularateprocessexpires,AmerenIllinoiswouldbe requiredtoestablishfutureratesthroughatraditionalrate proceedingwiththeICC,whichmightnotresultinrates thatproduceafullortimelyrecoveryofcostsorprovidefor anadequatereturnoninvestments.Wearesubjecttovariousenvironmentallawsandregulations.Significantcapitalexpendituresarerequired toachieveandmaintaincompliancewiththeselawsand regulations.Failuretocomplywiththeselawsand regulationscouldresultinclosureoffacilities, alterationstothemannerinwhichthesefacilities operate,increasedoperatingcosts,adverseimpactsto ourresultsofoperations,financialposition,andliquidity, orexposuretofinesandliabilities.Wearesubjecttovariousenvironmentallawsandregulationsenforcedbyfederal,state,andlocalauthorities.
Fromthebeginningphasesofsitinganddevelopmenttothe operationofexistingornewelectricgeneration,transmissionanddistributionfacilitiesandnaturalgas storage,transmissionanddistributionfacilities,our activitiesinvolvecompliancewithdiverseenvironmental lawsandregulations.Theselawsandregulationsaddress emissions;dischargestowater,waterusage,impactstoair, land,andwater,andchemicalandwastehandling.Complex andlengthyprocessesarerequiredtoobtainandrenew approvals,permits,orlicensesfornew,existing,or modifiedfacilities.Additionally,theuseandhandlingof variouschemicalsorhazardousmaterialsrequirerelease preventionplansandemergencyresponseprocedures.Wearealsosubjecttoliabilityunderenvironmentallawsthataddresstheremediationofenvironmental contaminationofpropertycurrentlyorformerlyownedby usorbyourpredecessors,aswellasproperty contaminatedbyhazardoussubstancesthatwegenerated.
SuchpropertiesincludeMGPsitesandthird-partysites, suchaslandfills.Additionally,privateindividualsmayseek toenforceenvironmentallawsandregulationsagainstus.
Theycouldallegeinjuryfromexposuretohazardous materials,couldseektocompelremediationof environmentalcontamination,orcouldrecoverdamages resultingfromthatcontamination.TheEPAisdevelopingandimplementingenvironmentalregulationsthatwillhaveasignificantimpact ontheelectricutilityindustry.Overtime,compliancewith theseregulationscouldbecostlyforcertaincompanies, includingAmerenMissouri,thatoperatecoal-firedpower plants.Certainofthesenewandproposedregulations,if adopted,arelikelytobechallengedthroughlitigation,so theirultimateimplementation,aswellasthetimingofany suchimplementation,isuncertain.Amerenisalsosubjecttorisksinconnectionwithchangingorconflictinginterpretationsofexistinglawsand regulations.TheEPAisengagedinanenforcementinitiative todeterminewhethercoal-firedpowerplantsfailedto complywiththerequirementsoftheNSRandNSPS provisionsundertheCleanAirActwhenthepowerplants implementedmodifications.InJanuary2011,the DepartmentofJustice,onbehalfoftheEPA,fileda complaintagainstAmerenMissouriintheUnitedStates DistrictCourtfortheEasternDistrictofMissouri.An outcomeinthismatteradversetoAmerenMissouricould requiresubstantialcapitalexpendituresandthepaymentof substantialpenalties,neitherofwhichcanbedeterminedat thistime.Suchexpenditurescouldaffectunitretirement andreplacementdecisions.InJanuary2014,theEPApublishedproposedregulationsthatwouldsetrevisedCO 2emissionsstandardsfornewpowerplants.Theproposedstandardswould establishseparateemissionslimitsfornewnatural-gas-firedplantsandnewcoal-firedplants.InJune2014,the EPAproposedtheCleanPowerPlan,whichsetsforthCO 2emissionsstandardsthatwouldbeapplicabletoexisting powerplants.TheproposedCleanPowerPlanwould requireeachstatetodevelopplanstoachieveCO 2 emissionstandardsthattheEPAcalculatedforeachstate.TheEPA believesthattheCleanPowerPlanwouldachievea30%
18 reductioninthenation'sexistingpowerplantCO 2emissionsfrom2005levelsby2030.TheproposedrulealsohasinterimgoalsofaggressivelyreducingCO 2emissionsby2020.TheEPAexpectstheproposedrulewill befinalizedin2015.AmerenMissouri'sintegratedresource planisprojectedtoachievethecarbonemissions reductionsproposedintheEPA'sCleanPowerPlanby 2035,ratherthantheEPA'sfinaltargetdateof2030orits interimtargetdatesbeginningin2020.AmerenMissouri continuestoevaluateitspotentialcomplianceplansforthe proposedCleanPowerPlan.Preliminarystudiessuggest thatiftheproposedCleanPowerPlanweretobefinalizedin itscurrentform,AmerenMissourimayneedtoincurnew oracceleratedcapitalexpendituresandincreasedfuelcosts inordertoachievecompliance.Asproposed,theClean PowerPlanwouldrequirestates,includingMissouriand Illinois,tosubmitcomplianceplansasearlyas2016.The states'complianceplansmightrequireAmerenMissourito constructnatural-gas-firedcombinedcyclegenerationand renewablegeneration,atacurrentlyestimatedcostof approximately$2billionby2020,thatAmerenMissouri believeswouldotherwisenotbenecessarytomeetthe energyneedsofitscustomers.Additionally,Missouri's implementationoftheproposedrules,ifadopted,could resultintheclosureoralterationoftheoperationofsome ofAmerenMissouri'scoalandnaturalgas-firedenergy centers,whichcouldresultinincreasedoperatingcostsor impairmentofassets.TheCleanPowerPlanmaynegatively impactelectricsystemreliabilityforAmerenMissouriand AmerenIllinois.AmerenandAmerenMissourihaveincurredandexpecttoincursignificantcostsrelatedtoenvironmental complianceandsiteremediation.Neworrevised environmentalregulations,enforcementinitiatives,or legislationcouldresultinasignificantincreaseincapital expendituresandoperatingcosts,decreasedrevenues, increasedfinancingrequirements,penaltiesorfines,or reducedoperationsofsomeofAmerenMissouri'scoal-fired energycenters,which,inturn,couldleadtoincreased liquidityneedsandhigherfinancingcosts.Actionsrequired toensurethatourfacilitiesandoperationsarein compliancewithenvironmentallawsandregulationscould beprohibitivelyexpensiveifthecostsarenotrecovered throughrates.EnvironmentallawscouldrequireAmeren Missouritocloseortoaltersignificantlytheoperationofits energycenters.Moreover,ifAmerenMissourirequests recoveryofthesecapitalexpendituresandcoststhrough rates,theMoPSCcoulddenyrecoveryofalloraportionof thesecosts,preventtimelyrecovery,ormakechangesto theregulatoryframeworkinanefforttominimizerate volatilityandcustomerrateincreases.Capitalexpenditures andcoststocomplywithfuturelegislationorregulations thatarenotrecoverablethroughratesmightresultin AmerenMissouriclosingcoal-firedenergycentersearlier thanplanned,whichwouldleadtoanimpairmentofassets andreducedrevenues.Weareunabletopredicttheultimate impactofthesemattersonourresultsofoperations, financialposition,andliquidity.Governmentchallengestoourtaxpositions,aswellastaxlawchangesandtheinherentdifficultyin quantifyingpotentialtaxeffectsofbusinessdecisions, couldadverselyaffectourresultsofoperationsand
liquidity.Wearerequiredtomakejudgmentsinordertoestimatetaxobligations.Thesejudgmentsincludereserves forpotentialadverseoutcomesfortaxpositionsthatmaybe challengedbytaxauthorities.Theobligations,whichinclude incometaxesandtaxesotherthanincometaxes,involve complexmattersthatultimatelycouldbelitigated.Wealso estimateourabilitytousetaxbenefits,includingthosein theformofcarryforwardsandtaxcreditsthatarerecorded asdeferredtaxassetsonourbalancesheets.A disallowanceofthesetaxbenefitscouldhaveamaterial adverseimpactonourresultsofoperation,financial position,andliquidity.Customers',legislators'andregulators'opinionsofusareaffectedbymanyfactors,includingsystem reliability,implementationofourinvestmentplans, protectionofcustomerinformation,rates,andmedia coverage.Totheextentthatcustomers,legislatorsor regulatorsdevelopanegativeopinionofus,ourresultsof operations,financialposition,andliquiditycouldbe negativelyaffected.Serviceinterruptionsduetofailuresofequipmentorfacilitiesasaresultofsevereordestructiveweatheror othercauses,andtheabilityofAmerenMissouriand AmerenIllinoistopromptlyrespondtosuchfailures,can affectcustomersatisfaction.Inadditiontosystemreliability issues,thesuccessofmodernizationefforts,suchasthose plannedforAmerenIllinois'electricandnaturalgasdelivery systems,ourabilitytosafeguardsensitivecustomer information,andotheractionscanaffectcustomer satisfaction.Thetimingandmagnitudeofrateincreases andvolatilityofratescanalsoaffectcustomersatisfaction.
Customers',legislators'andregulators'opinionsofuscan alsobeaffectedbymediacoverage,includingthe proliferationofsocialmedia,whichmayinclude information,whetherfactualornot,thatdamagesourbrand andreputation.Ifcustomers,legislatorsorregulatorshaveanegativeopinionofusandourutilityservices,thiscouldresultin increasedregulatoryoversightandcouldimpactthereturns oncommonequityweareallowedtoearn.Additionally, negativeopinionsaboutuscouldmakeitmoredifficultfor ourutilitiestoachievefavorablelegislativeorregulatory outcomes.Negativeopinionscouldalsoresultinsales volumereductionsandincreaseduseofdistributed generation.Anyoftheseconsequencescouldadversely affectourresultsofoperations,financialposition,and
liquidity.Wearesubjecttofederalregulatorycomplianceandproceedings,whichincreaseourriskofregulatory penaltiesandothersanctions.TheFERCcanimposecivilpenaltiesof$1millionperviolationperdayforviolationofFERCstatutes,rules,and 19 orders,includingmandatoryNERCreliabilitystandards.Asownersandoperatorsofbulkpowertransmissionsystems andelectricenergycenters,wearesubjecttomandatory NERCreliabilitystandards,includingcybersecurity standards.Compliancewiththesemandatoryreliability standardsmaysubjectustohigheroperatingcostsand mayresultinincreasedcapitalexpenditures.Ifwewere foundnottobeincompliancewiththesemandatory reliabilitystandardsortheFERCstatutes,rules,andorders, wecouldincursubstantialmonetarypenaltiesandother sanctions,whichcouldadverselyaffectourresultsof operations,financialposition,andliquidity.TheFERCalso conductsauditsandreviewsofAmerenMissouri's,Ameren Illinois',andATXI'saccountingrecordstoassessthe accuracyofitsformularatemakingprocessandhasthe abilitytorequireretroactiverefundstocustomersfor previouslybilledamounts,withinterest.OPERATIONALRISKSTheconstructionofandcapitalimprovementstoourelectricandnaturalgasutilityinfrastructureinvolvesubstantialrisks.Theserisksincludeescalatingcosts, unsatisfactoryperformancebytheprojectswhen completed,theinabilitytocompleteprojectsas scheduled,costdisallowancesbyregulators,andthe inabilitytoearnanadequatereturnoninvestedcapital, anyofwhichcouldresultinhighercostsandtheclosure offacilities.Weexpecttoincursignificantcapitalexpendituresinordertomakeinvestmentstoimproveourelectricand naturalgasutilityinfrastructureandtocomplywithexisting environmentalregulations.Weestimatethatwewillincur upto$9.3billion(AmerenMissouri-upto$3.9billion; AmerenIllinois-upto$4.0billion;ATXI-upto
$1.4billion)ofcapitalexpendituresduringtheperiodfrom 2015through2019.Theseestimatesincludeallowancefor equityfundsusedduringconstruction.InvestmentsinAmeren'srate-regulatedoperationsareexpectedtoberecoverablefromratepayers,butaresubject toprudencereviewsand,dependingonthejurisdiction, regulatorylag.Ourabilitytocompleteconstructionprojectssuccessfullywithinprojectedestimatesiscontingentupon manyvariablesandsubjecttosubstantialrisks.These variablesinclude,butarenotlimitedto,project managementexpertiseandescalatingcostsformaterials, labor,andenvironmentalcompliance.Delaysinobtaining permits,shortagesinmaterialsandqualifiedlabor, suppliersandcontractorswhodonotperformasrequired undertheircontracts,changesinthescopeandtimingof projects,theinabilitytoraisecapitalonreasonableterms, orothereventsbeyondourcontrolthatcouldoccurmay materiallyaffecttheschedule,cost,andperformanceof theseprojects.Withrespecttocapitalexpendituresfor pollutioncontrolequipment,thereisariskthatapower plantmaynotbepermittedtocontinuetooperateif pollutioncontrolequipmentisnotinstalledbyprescribed deadlinesordoesnotperformasexpected.Shouldanysuchpollutioncontrolequipmentnotbeinstalledontimeor performasexpected,AmerenMissouricouldbesubjectto additionalcostsandtothelossofitsinvestmentinthe projectorfacility.Alloftheseriskscouldadverselyaffect ourresultsofoperations,financialposition,andliquidity.AsofDecember31,2014,AmerenMissourihadcapitalized$69millionofcostsincurredtolicense additionalnucleargenerationatitsexistingCallawayenergy centersite.Ifeffortsareabandonedorifmanagement concludesthatitisprobablethecostsincurredwillbe disallowedinrates,achargetoearningswouldbe recognizedintheperiodinwhichthatdeterminationwas made.TheNRCreviewoftheCOLapplicationtolicense additionalnucleargenerationattheCallawayenergycenter siteiscurrentlysuspendedthroughtheendof2015.AmerenandAmerenIllinoismaynotbeabletoexecutetheirelectrictransmissioninvestmentplansorto realizetheexpectedreturnonthoseinvestments.Ameren,throughATXIandAmerenIllinois,isallocatingsignificantadditionalcapitalresourcestoelectric transmissioninvestments.Thisallocationofcapital resourcesisbasedontheFERC'sregulatoryframeworkand arateofreturnoncommonequitythatiscurrentlyhigher thanthatallowedbyourstatecommissions.However,the FERCregulatoryframeworkandrateofreturnissubjectto change,includingchangesasaresultofthird-party complaintsandchallengesattheFERC.Theregulatory frameworkmaynotbeasfavorable,ortherateofreturn maybelower,inthefuture.Currently,theFERC-allowed returnoncommonequityforMISOtransmissionownersis 12.38%.InNovember2013,acomplaintcasewasfiled withtheFERCseekingareductionintheallowedreturnon commonequityundertheMISOtariff.Asecondcomplaint casewasfiledinFebruary2015.Thesecomplaintcases couldnegativelyaffectAmerenIllinois'andATXI'sallowed return.Anysuchreductionwouldalsoresultinarefundof transmissionservicerevenuesearnedsincethefilingofthe initialcomplaintcaseinNovember2013.A50basispoint reductionintheFERC-allowedreturnoncommonequity wouldreduceAmeren'sandAmerenIllinois'2015earnings byanestimated$4millionand$2million,respectively, basedonprojectedratebase.AsignificantportionofAmeren'splannedelectrictransmissioninvestmentsconsistsofthreeseparate projectstobeconstructedbyATXI,whichhavebeen approvedbyMISOasmulti-valueprojects.Thetotal investmentbyATXIinthesethreeprojectsisexpectedtobe morethan$1.6billion.Thelastoftheseprojectsis expectedtobecompletedin2019.AfailurebyATXIto completethesethreeprojectsontimeandwithinprojected costestimatescouldadverselyaffectAmeren'sresultsof operations,financialposition,andliquidity.TheFERChasissuedmultipleorders,whicharesubjecttoongoinglitigation,eliminatingtherightoffirst refusalforanelectricutilitytoconstructwithinitsservice territorycertainnewtransmissionprojectsforwhichthere willberegionalcostsharing.Iftheseordersareupheldby 20 thecourts,Amerenmightneedtocompetetobuildcertainfutureelectrictransmissionprojectsinitssubsidiaries' serviceterritories.SuchcompetitioncouldpreventAmeren frominvestinginfutureelectrictransmissionprojectstothe extentdesired.Also,Amerenmaynotbesuccessfulinits effortstobuildtransmissionassetsoutsideofits subsidiaries'serviceterritoriesorMISO.Ourelectricgeneration,transmissionanddistributionfacilitiesaresubjecttooperationalrisksthat couldadverselyaffectourresultsofoperations,financial position,andliquidity.Ourfinancialperformancedependsonthesuccessfuloperationofelectricgeneration,transmission,and distributionfacilities.Operationofelectricgeneration, transmission,anddistributionfacilitiesinvolvesmanyrisks, including:
facilityshutdownsduetooperatorerrororafailureofequipmentorprocesses; longer-than-anticipatedmaintenanceoutages; aginginfrastructurethatmayrequiresignificant expenditurestooperateandmaintain; disruptionsinthedeliveryoffuelorlackofadequate inventories,includingultra-low-sulfurcoalusedfor AmerenMissouri'scompliancewithenvironmental
regulations; lackofadequatewaterrequiredforcoolingplant
operations; labordisputes; inabilitytocomplywithregulatoryorpermit requirements,includingthoserelatingtoenvironmental
laws;disruptionsinthedeliveryofelectricitythatimpactour
customers; handling,storage,anddispositionofCCR; unusualoradverseweatherconditionsorothernatural disasters,includingseverestorms,droughts,floods, tornadoes,earthquakes,solarflares,and electromagneticpulses; accidentsthatmightresultininjuryorlossoflife, extensivepropertydamage,orenvironmentaldamage; cybersecurityrisks,includinglossofoperational controlofAmerenMissouri'senergycentersandour transmissionanddistributionsystemsandlossofdata, suchasutilitycustomerdataandaccountinformation throughinsideroroutsideractions; failureofotheroperators'facilitiesandtheeffectofthat failureonourelectricsystemandcustomers; theoccurrenceofcatastrophiceventssuchasfires, explosions,actsofsabotageorterrorism,pandemic healthevents,orothersimilaroccurrences; limitationsonamountsofinsuranceavailabletocover lossesthatmightariseinconnectionwithoperatingour electricgeneration,transmission,anddistribution facilities;and otherunanticipatedoperationsandmaintenance expensesandliabilities.AmerenMissouri'sownershipandoperationofanuclearenergycentercreatesbusiness,financial,and wastedisposalrisks.AmerenMissouri'sownershipoftheCallawayenergycentersubjectsittotherisksofnucleargeneration,which includethefollowing:
potentialharmfuleffectsontheenvironmentandhumanhealthresultingfromtheoperationofnuclear facilitiesandthestorage,handling,anddisposalof radioactivematerials; continueduncertaintyinthefederalgovernmentplanto permanentlystorespentnuclearfuelandtheriskof beingrequiredtoprovideforlong-termstorageof spentnuclearfuelattheCallawayenergycenter; limitationsontheamountsandtypesofinsurance availabletocoverlossesthatmightariseinconnection withtheCallawayenergycenterorotherUnitedStates nuclearfacilities; uncertaintieswithrespecttocontingenciesand retrospectivepremiumassessmentsrelatingtoclaims attheCallawayenergycenteroranyotherUnited Statesnuclearfacilities; publicandgovernmentalconcernsabouttheadequacy ofsecurityatnuclearfacilities; uncertaintieswithrespecttothetechnologicaland financialaspectsofdecommissioningnuclearfacilities attheendoftheirlicensedlives; limitedavailabilityoffuelsupply; costlyandextendedoutagesforscheduledor unscheduledmaintenanceandrefueling;and potentialadverseeffectsofanaturaldisasteroractsof sabotageorterrorism.TheNRChasbroadauthorityunderfederallawtoimposelicensingandsafetyrequirementsfornuclear facilities.Intheeventofnoncompliance,theNRChasthe authoritytoimposefinesortoshutdownaunit,orboth, dependinguponitsassessmentoftheseverityofthe situation,untilcomplianceisachieved.Revisedsafety requirementspromulgatedfromtimetotimebytheNRC couldnecessitatesubstantialcapitalexpendituresatnuclear facilitiessuchasAmerenMissouri'sCallawayenergy center.Inaddition,ifaseriousnuclearincidentwereto occur,itcouldhaveamaterialbutindeterminableadverse effectonAmeren'sandAmerenMissouri'sresultsof operations,financialcondition,andliquidity.Amajor incidentatanuclearfacilityanywhereintheworldcould causetheNRCtolimitorprohibittheoperationor relicensingofanydomesticnuclearunitandcouldalso causetheNRCtoimposeadditionalconditionsor requirementsontheindustry,whichcouldincreasecosts andresultinadditionalcapitalexpenditures.Underrevised standardsrelatingtoseismicrisk,theNRCmayrequire AmerenMissouritofurtherevaluatetheimpactofan earthquakeonitsCallawayenergycenterdueitsproximity toafaultline,whichcouldrequiretheinstallationof additionalcapitalequipment.
21 Ournaturalgasdistributionandstorageactivitiesinvolvenumerousrisksthatmayresultinaccidentsandotheroperatingrisksandcoststhatcouldadverselyaffect ourresultsofoperations,financialposition,andliquidity.Inherentinournaturalgasdistributionandstorageactivitiesareavarietyofhazardsandoperatingrisks,such asleaks,accidentalexplosions,mechanicalproblemsand cybersecurityrisks,whichcouldcausesubstantialfinancial losses.Inaddition,thesehazardscouldresultinserious injury,lossofhumanlife,significantdamagetoproperty, environmentalimpacts,andimpairmentofouroperations, whichinturncouldleadustoincursubstantiallosses.In accordancewithcustomaryindustrypractice,wemaintain insuranceagainstsome,butnotall,oftheserisksand losses.Thelocationofdistributionlinesandstorage facilitiesnearpopulatedareas,includingresidentialareas, businesscenters,industrialsites,andotherpublic gatheringplaces,couldincreasethelevelofdamages resultingfromtheserisks.Amajordomesticincident involvingnaturalgassystemscouldleadtoadditional capitalexpendituresandincreasedregulationofnaturalgas utilities.Theoccurrenceofanyoftheseeventscould materiallyadverselyaffectourresultsofoperations, financialposition,andliquidity.Significantportionsofourelectricgeneration,transmission,anddistributionfacilitiesandnaturalgas transmissionanddistributionfacilitiesareaging.This aginginfrastructuremayrequireadditionalmaintenance expendituresormayrequirereplacement.Ouraginginfrastructuremayposeriskstosystemreliabilityandexposeustoexpeditedoradditional unplannedcapitalexpendituresandoperatingcosts.Allof AmerenMissouri'scoal-firedenergycenterswere constructedpriorto1978,whileitsCallawaynuclearenergy centerwasconstructedpriorto1984.Theageofthese energycentersincreasestherisksofunplannedoutages, reducedgenerationoutput,andhighermaintenance expense.If,attheendofitslife,anenergycenter'scosthas notbeenfullyrecovered,AmerenMissourimaybe negativelyaffectedifsuchcostisnotallowedinratesbythe MoPSC.Agingtransmissionanddistributionfacilitiesare morepronetofailurethannewfacilities,whichresultsin highermaintenanceexpenseandtheneedtoreplacethese facilitieswithnewinfrastructure.Evenifthesystemis properlymaintained,itsreliabilitymayultimatelydeteriorate andnegativelyaffectourabilitytoserveourcustomers, whichcouldresultinadditionaloversightbyourregulators.
Thehighermaintenancecostsandcapitalexpendituresfor newreplacementinfrastructurecouldcauseadditionalrate volatilityforourcustomers,resistancebyourregulatorsto allowcustomerrateincreases,and/orregulatorylagin someofourjurisdictions,anyofwhichcouldadversely affectourresultsofoperations,financialposition,and
liquidity.Energyconservation,energyefficiency,distributedgeneration,andotherfactorsthatreduceenergydemand couldadverselyaffectourresultsofoperations,financial position,andliquidity.Requirementsandincentivestoreduceenergyconsumptionhavebeenproposedbyregulatoryagencies andintroducedbylegislatures.Conservationandenergy efficiencyprogramsaredesignedtoreduceenergydemand.
Unlessthereisaregulatorymechanismensuringrecovery, adeclineinusagewillresultinanunder-recoveryoffixed costsatourrate-regulatedbusinesses.AmerenMissouri, evenwiththeimplementationofcustomerenergyefficiency programsundertheMEEIA,isexposedtodecliningusage lossesfromenergyefficiencyeffortsnotrelatedtoits specificprogramsaswellasfromdistributedgeneration sourcessuchassolarpanels.Additionally,macroeconomic factorsresultinginloweconomicgrowthorcontraction withinourserviceterritoriescouldreduceenergydemand.Technologicaladvancescouldreducecustomerelectricityconsumption.AmerenMissourigeneratespower atutility-scaleenergycenterstoachieveeconomiesofscale andtoproducepoweratacompetitivecost.Some distributedgenerationtechnologieshaverecentlybecome morecost-competitive.Itispossiblethatadvancesin technologyandlegislativeorregulatoryactionswill continuetoreducethecostsofthesealternativemethodsof producingpowertoalevelthatiscompetitivewiththatof AmerenMissouri'senergycenters.Increasedadoptionof thesetechnologiescoulddecreaseourrevenuesas customersmightnotuseourgeneration,transmission,and distributionservicesatcurrentlevels.AmerenMissouriand AmerenIllinoismightincurstrandedcosts,whichultimately mightnotberecoveredthroughrates.Failuretoretainandattractkeyofficersandotherskilledprofessionalandtechnicalemployeescould adverselyaffectouroperations.Ourbusinessesdependuponourabilitytoemployandretainkeyofficersandotherskilledprofessionaland technicalemployees.Asignificantportionofourworkforce isnearingretirement,includingmanyemployeeswith specializedskills,suchasmaintainingandservicingour electricandnaturalgasinfrastructureandoperatingour energycenters.Ouroperationsaresubjecttoactsofsabotage,war,terrorism,cyberattacks,andotherintentionally disruptiveacts.Likeotherelectricandnaturalgasutilities,ourenergycenters,fuelstoragefacilities,transmissionanddistribution facilities,andinformationsystemsmaybetargetsof terroristactivities,includingcyberattacks,whichcould disruptourabilitytoproduceordistributesomeportionof ourenergyproducts.Anysuchdisruptioncouldresultina significantdecreaseinrevenuesorsignificantadditional costsforrepair,whichcouldadverselyaffectourresultsof operations,financialposition,andliquidity.
22 Ourindustryhasbeguntoseeanincreaseinvolumeandsophisticationofcybersecurityincidentsfrominternationalactivistorganizations,countries,and individuals.Asecuritybreachofourphysicalassetsor informationsystemscouldaffectthereliabilityofthe transmissionanddistributionsystem,disruptelectric generation,and/orsubjectustofinancialharmassociated withtheftorinappropriatereleaseofcertaintypesof information,includingsensitivecustomerandemployee data.Ifasignificantbreachoccurred,ourreputationcould beadverselyaffected,customerconfidencecouldbe diminished,orwecouldbesubjecttolegalclaims,anyof whichcouldresultinasignificantdecreaseinrevenuesor significantadditionalcostsforremedyingtheimpactsof suchabreach.Ourgeneration,transmissionand distributionsystemsarepartofaninterconnectedsystem.
Therefore,adisruptioncausedbyacybersecurityincident atanotherutility,electricgenerator,RTO,orcommodity suppliercouldalsoadverselyaffectourbusinesses.We maintaininsuranceagainstsome,butnotall,oftheserisks andlosses.Inaddition,regulationscouldrequirechanges inoursecuritymeasuresandcouldadverselyaffectour resultsofoperations,financialposition,andliquidity.AmerenMissourimayultimatelynotcollectitsreceivablefromaninsurancecompanythatprovided liabilitycoverageatthetimeofthebreachoftheupper reservoirofitsTaumSaukpumped-storagehydroelectric energycenter,whichcouldhaveamaterialadverse effectonAmeren'sandAmerenMissouri'sresultsof operations,financialcondition,andliquidity.InDecember2005,therewasabreachoftheupperreservoiratAmerenMissouri'sTaumSaukpumped-storage hydroelectricenergycenter.Thisbreachresultedin significantfloodinginthelocalarea,whichdamagedastate park.AmerenMissourihadliabilityinsurancecoveragefor theTaumSaukincident,subjecttocertainlimitsand deductibles.Ameren'sandAmerenMissouri'sresultsof operations,financialposition,andliquiditycouldbe adverselyaffectedifAmerenMissouri'sremainingliability insuranceclaimof$41millionasofDecember31,2014,is notpaid.Theinsuranceclaimiscurrentlysubjectto
litigation.FINANCIAL,ECONOMICANDMARKETRISKSOurbusinessesaredependentonourabilitytoaccessthecapitalmarketssuccessfully.Wemaynothaveaccesstosufficientcapitalintheamountsandat thetimesneeded.Werelyonshort-termandlong-termdebtassignificantsourcesofliquidityandfundingforcapital requirementsnotsatisfiedbyouroperatingcashflow,as wellastorefinancelong-termdebt.Theinabilitytoraise debtorequitycapitalonreasonableterms,oratall,could negativelyaffectourabilitytomaintainandtoexpandour businesses.Eventsbeyondourcontrol,suchasarecession orextremevolatilityinthedebt,equity,orcreditmarkets, maycreateuncertaintythatcouldincreaseourcostofcapitalorimpairoreliminateourabilitytoaccessthedebt, equity,orcreditmarkets,includingourabilitytodrawon bankcreditfacilities.Anyadversechangeinourcredit ratingscouldreduceaccesstocapitalandtriggeradditional collateralpostingsandprepayments.Suchchangescould alsoincreasethecostofborrowingandfuel,powerand naturalgassupply,amongotherthings,whichcouldhavea materialadverseeffectonourresultsofoperations, financialposition,andliquidity.CertainAmeren subsidiaries,suchasATXI,relyonAmerenforaccessto capital.CircumstancesthatlimitAmeren'saccesstocapital couldimpairitsabilitytoprovidethosesubsidiarieswith neededcapital.Ameren'sholdingcompanystructurecouldlimititsabilitytopaycommonstockdividendsandtoserviceits debtobligations.Amerenisaholdingcompany;therefore,itsprimaryassetsareitsinvestmentsinthecommonstockofits subsidiaries,includingAmerenMissouriandAmeren Illinois.Asaresult,Ameren'sabilitytopaydividendsonits commonstockdependsontheearningsofitssubsidiaries andtheabilityofitssubsidiariestopaydividendsor otherwisetransferfundstoAmeren.Similarly,Ameren's abilitytoserviceitsdebtobligationsisdependentuponthe earningsofoperatingsubsidiariesandthedistributionof thoseearningsandotherpayments,includingpaymentsof principalandinterestunderintercompanyindebtedness.
ThepaymentofdividendstoAmerenbyitssubsidiariesin turndependsontheirresultsofoperationsandavailable cashandotheritemsaffectingretainedearnings.Ameren's subsidiariesareseparateanddistinctlegalentitiesandhave noobligation,contingentorotherwise,topayanydividends ormakeanyotherdistributions(exceptforpayments requiredpursuanttothetermsofintercompanyborrowing arrangementsandcashpaymentsunderthetaxallocation agreement)toAmeren.Certainfinancingagreements, corporateorganizationaldocuments,andcertainstatutory andregulatoryrequirementsmayimposerestrictionsonthe abilityofAmerenMissouriandAmerenIllinoistotransfer fundstoAmerenintheformofcashdividends,loans,or
advances.Dynegy'soritssubsidiaries'failuretosatisfycertainoftheirindemnityandotherobligationstoAmerenin connectionwiththedivestitureofNewAERtoIPHcould haveamaterialadverseeffectonAmeren'sresultsof operations,financialposition,andliquidity.InDecember2013,AmerencompletedthedivestitureofNewAERtoIPH.Thetransactionagreementbetween AmerenandIPHrequiresAmeren,untilDecember2,2015, tomaintainitsfinancialobligationsinexistenceasof December2,2013,underallcreditsupportarrangements orobligationsthatpertaintoNewAERanditssubsidiaries.
Amerenmustalsoprovideanyadditionalcreditsupportthat maybecontractuallyrequiredpursuanttoanyofthe contractsofNewAER,anditssubsidiariesasof December2,2013.IPH,NewAERanditssubsidiaries,and DynegyhaveagreedtoindemnifyAmerenforcertainlosses relatingtothiscreditsupport.IPH'sindemnification 23 obligationsaresecuredbycertainAERGandGencoassets.However,theseindemnificationobligationsandsecurity interestsmightnotcoveralllossesthatcouldbeincurred byAmereninconnectionwithprovidingthiscreditsupport.
AsofDecember31,2014,thebalanceoftheMarketing CompanynotetoAmerenwas$12million.Additionally,as ofDecember31,2014,Amerenprovided$114millionin guaranteesand$9millioninlettersofcreditrelatingtoits creditsupportofNewAER.Dynegyemergedfromits Chapter11bankruptcycasein2012.AsofDecember31, 2014,Dynegy'screditratingsweresub-investment-grade.
IPH,NewAERanditssubsidiariesalsodonothave investment-gradecreditratings.Dynegy,IPH,NewAER,or theirsubsidiariesmightnotbeabletosatisfytheir indemnityandotherobligationsunderthetransaction agreement,MarketingCompany'snotetoAmeren,or Dynegy'slimitedguaranteetoAmeren,whichcouldhavea materialadverseimpactonAmeren'sresultsofoperations, financialposition,andliquidity.Increasingcostsassociatedwithourdefinedbenefitretirementandpostretirementplans,healthcareplans, andotheremployeebenefitscouldadverselyaffectour financialpositionandliquidity.Weofferdefinedbenefitretirementandpostretirementplansthatcoversubstantiallyallofouremployees.
Assumptionsrelatedtofuturecosts,returnson investments,interestrates,timingofemployeeretirements, andmortality,aswellasotheractuarialmatters,havea significantimpactonourcustomers'ratesandourplan fundingrequirements.Ameren'stotalunfundedobligationunderitspensionandpostretirementbenefitplanswas
$710millionasofDecember31,2014.Amerenexpectsto funditspensionplansatalevelequaltothegreaterofthe pensionexpenseorthelegallyrequiredminimum contribution.ConsideringAmeren'sassumptionsat December31,2014,itsinvestmentperformancein2014, anditspensionfundingpolicy,Amerenexpectstomake annualcontributionsof$25millionto$115millionineach ofthenextfiveyears,withaggregateestimated contributionsof$290million.WeexpectAmerenMissouri's andAmerenIllinois'portionofthefuturefunding requirementstobe41%and40%,respectively.These amountsareestimates.Theymaychangewithactual investmentperformance,changesininterestrates,changes inourassumptions,changesingovernmentregulations, andanyvoluntarycontributions.Inadditiontothecostsofourretirementplans,thecostsofprovidinghealthcarebenefitstoouremployees andretireeshaveincreasedinrecentyears.Webelievethat ouremployeebenefitcosts,includingcostsofhealthcare plansforouremployeesandformeremployees,will continuetorise.Theincreasingcostsandfunding requirementsassociatedwithourdefinedbenefitretirement plans,healthcareplans,andotheremployeebenefitscould increaseourfinancingneedsandotherwisematerially adverselyaffectourfinancialpositionandliquidity.ITEM1B.UNRESOLVEDSTAFFCOMMENTS None.24 ITEM2.PROPERTIESForinformationonourprincipalproperties,seetheenergycentertablebelow.SeealsoLiquidityandCapitalResourcesandRegulatoryMattersinManagement'sDiscussionandAnalysisofFinancialConditionandResultsofOperationsunderPartII,Item7,ofthisreportforadiscussionofplannedadditions,replacementsortransfers.SeealsoNote5-Long-termDebt andEquityFinancings,andNote15-CommitmentsandContingenciesunderPartII,Item8,ofthisreport.ThefollowingtableshowstheanticipatedcapabilityofAmerenMissouri'senergycentersatthetimeofAmerenMissouri'sexpected2015peaksummerelectricaldemand:PrimaryFuelSourceEnergyCenter LocationNetKilowattCapability (a)Coal........................................LabadieFranklinCounty,Missouri2,372,000RushIslandJeffersonCounty,Missouri1,180,000SiouxSt.CharlesCounty,Missouri970,000MeramecSt.LouisCounty,Missouri831,000Totalcoal....................................
5,353,000 Nuclear......................................CallawayCallawayCounty,Missouri1,193,000 Hydroelectric
.................................OsageLakeside,Missouri240,000KeokukKeokuk,Iowa140,000Totalhydroelectric
.............................
380,000 Pumped-storage
...............................TaumSaukReynoldsCounty,Missouri440,000Oil(CTs).....................................MeramecSt.LouisCounty,Missouri54,000FairgroundsJeffersonCity,Missouri54,000MexicoMexico,Missouri53,000MoberlyMoberly,Missouri53,000MoreauJeffersonCity,Missouri53,000Totaloil.....................................
267,000Naturalgas(CTs)
..............................
Audrain (b)AudrainCounty,Missouri 600,000 Venice (c)Venice,Illinois 487,000GooseCreekPiattCounty,Illinois 432,000 PinckneyvillePinckneyville,Illinois 316,000RaccoonCreekClayCounty,Illinois 300,000 Kinmundy (c)Kinmundy,Illinois 206,000PenoCreek (b)(c)BowlingGreen,Missouri 188,000 Meramec (c)St.LouisCounty,Missouri 44,000 KirksvilleKirksville,Missouri 13,000Totalnaturalgas
...............................
2,586,000Methanegas(CT)
..............................MarylandHeightsMarylandHeights,Missouri 8,000 Solar........................................
O'FallonO'Fallon,Missouri 3,000TotalAmerenandAmerenMissouri
..............
10,230,000(a)Netkilowattcapabilityisthegeneratingcapacityavailablefordispatchfromtheenergycenterintotheelectrictransmissiongrid.(b)ThereareeconomicdevelopmentleasearrangementsapplicabletotheseCTs.
(c)TheseCTshavethecapabilitytooperateoneitheroilornaturalgas(dualfuel).Thefollowingtablepresentsin-serviceelectricandnaturalgasutility-relatedpropertiesforAmerenMissouriandAmerenIllinoisasofDecember31,2014:
Ameren Missouri Ameren IllinoisCircuitmilesofelectrictransmissionlines (a)...2,9564,558Circuitmilesofelectricdistributionlines
......33,14446,071Circuitmilesofelectricdistributionlines underground.........................23%15%Milesofnaturalgastransmissionanddistributionmains
.....................3,33418,246Undergroundgasstoragefields.............-12Totalworkingcapacityofundergroundgasstoragefieldsinbillioncubicfeet.........-24(a)ATXIowns29milesoftransmissionlinesnotreflectedinthistable.Ourotherpropertiesincludeofficebuildings,warehouses,garages,andrepairshops.Withonlyafewexceptions,wehavefeetitletoallprincipalenergycentersandotherunitsofpropertymaterial totheoperationofourbusinesses,andtotherealproperty onwhichsuchfacilitiesarelocated(subjecttomortgage lienssecuringouroutstandingfirstmortgagebondsandto certainpermittedliensandjudgmentliens).Theexceptions areasfollows:
AportionofAmerenMissouri'sOsageenergycenterreservoir,certainfacilitiesatAmerenMissouri'sSioux energycenter,mostofAmerenMissouri'sPenoCreek andAudrainCTenergycenters,certainsubstations, andmosttransmissionanddistributionlinesand naturalgasmainsaresituatedonlandsoccupiedunder 25 leases,easements,franchises,licenses,orpermits.TheUnitedStatesorthestateofMissourimayownormay haveparamountrightstocertainlandslyinginthebed oftheOsageRiverorlocatedbetweentheinnerand outerharborlinesoftheMississippiRiveronwhich certainofAmerenMissouri'senergycentersandother propertiesarelocated.
TheUnitedStates,thestateofIllinois,thestateofIowa, orthecityofKeokuk,Iowa,mayownormayhave paramountrightswithrespecttocertainlandslyingin thebedoftheMississippiRiveronwhichaportionof AmerenMissouri'sKeokukenergycenterislocated.SubstantiallyallofthepropertiesandplantofAmerenMissouriandAmerenIllinoisaresubjecttothefirstliensof theindenturessecuringtheirmortgagebonds.AmerenMissourihasconveyedmostofitsPenoCreekCTenergycentertothecityofBowlingGreen,Missouri, andleasedtheenergycenterbackfromthecitythrough 2022.Underthetermsofthiscapitallease,Ameren Missouriisresponsibleforalloperationandmaintenance fortheenergycenter.Ownershipoftheenergycenterwill transfertoAmerenMissouriattheexpirationofthelease,at whichtimethepropertyandplantwillbecomesubjectto thelienofanyAmerenMissourifirstmortgagebond indentureineffectatsuchtime.AmerenMissourioperatesaCTenergycenterlocatedinAudrainCounty,Missouri.AmerenMissourihasrights andobligationsaslesseeoftheCTenergycenterundera long-termleasewithAudrainCounty.Theleasewillexpire onDecember1,2023.Underthetermsofthiscapitallease, AmerenMissouriisresponsibleforalloperationand maintenancefortheenergycenter.Ownershipoftheenergy centerwilltransfertoAmerenMissouriattheexpirationof thelease,atwhichtimethepropertyandplantwillbecome subjecttothelienofanyAmerenMissourifirstmortgage bondindenturethenineffect.ITEM3.LEGALPROCEEDINGSWeareinvolvedinlegalandadministrativeproceedingsbeforevariouscourtsandagencieswithrespecttomattersthatariseintheordinarycourseof business,someofwhichinvolvesubstantialamountsof money.Webelievethatthefinaldispositionofthese proceedings,exceptasotherwisedisclosedinthisreport,willnothaveamaterialadverseeffectonourresultsof operations,financialposition,orliquidity.Riskoflossis mitigated,insomecases,byinsuranceorcontractualor statutoryindemnification.Webelievethatwehave establishedappropriatereservesforpotentiallosses.
Materiallegalandadministrativeproceedings,whichare discussedinNote2-RateandRegulatoryMattersand Note15-CommitmentandContingenciesunderPartII, Item8,ofthisreportandareincorporatedhereinby reference,includethefollowing:
AmerenMissouri'selectricratecasefiledwiththeMoPSCinJuly2014,includingtherateshiftrequest filedbytheMoOPC,theMIECandotherparties; AmerenMissouri'sMEEIAfilingwiththeMoPSCin December2014; AmerenIllinois'appealoftheICC'sDecember2013 naturalgasrateorder; AmerenIllinois'naturalgasratecasefiledwiththeICC inJanuary2015; AmerenIllinois'requestforrehearingofaSeptember 2014FERCorderrequiringrefundstowholesale
customers; ATXI'srequestforacertificateofpublicconvenience andnecessityandprojectapprovalfromtheICCforthe SpoonRiverproject; Entergy'sappealofaMay2012FERCorderrequiring EntergytorefundtoAmerenMissouriadditional chargespaidunderanexpiredpowerpurchase
agreement; AmerenIllinois'requestforrehearingoftheFERC's June2014orders,theappealfiledwiththeUnited StatesCourtofAppealsfortheDistrictofColumbia Circuit,andsettlementproceduresregardingapotential electrictransmissionraterefund; thecomplaintcasesfiledwiththeFERCseekinga reductionintheallowedbasereturnoncommonequity undertheMISOtariff; theEPA'sCleanAirAct-relatedlitigationagainst AmerenMissouri; remediationmattersassociatedwithformerMGPand wastedisposalsitesoftheAmerenCompanies; litigationassociatedwithAmerenMissouri'sliability insuranceclaimforthebreachoftheupperreservoirof itsTaumSaukpumped-storagehydroelectricenergy centerinDecember2005;and asbestos-relatedlitigationassociatedwiththeAmeren
Companies.
26 ITEM4.MINESAFETYDISCLOSURESNotapplicable.EXECUTIVEOFFICERSOFTHEREGISTRANTS(ITEM401(b)OFREGULATIONS-K):TheexecutiveofficersoftheAmerenCompanies,includingmajorsubsidiaries,arelistedbelow,alongwiththeiragesasofDecember31,2014,allpositionsandofficesheldwiththeAmerenCompaniesasofFebruary23,2015,tenureasofficer,andbusinessbackgroundforatleastthelastfiveyears.SomeexecutiveofficersholdmultiplepositionswithintheAmeren Companies;theirtitlesaregiveninthedescriptionoftheirbusinessexperience.Referencesto"AmerenIllinoiscompanies" belowreferstoCIPS,CILCO,andIPcollectivelypriortotheAmerenIllinoisMergerandtoAmerenIllinoisfollowingthe AmerenIllinoisMerger.AMERENCORPORATION:
NameAgePositionsandOfficesHeldWarnerL.Baxter53Chairman,PresidentandChiefExecutiveOfficer,andDirectorBaxterjoinedAmerenMissouriin1995.Baxterwaselectedtothepositionsofexecutivevicepresidentandchieffinancial officerofAmeren,AmerenMissouri,CIPS,CILCO,andAmerenServicesin2003andofIPin2004.Hewaselectedchairman, president,chiefexecutiveofficer,andchieffinancialofficerofAmerenServicesin2007.In2009,Baxterwaselectedchairman, presidentandchiefexecutiveofficerofAmerenMissouri.InFebruary2014,BaxterwaselectedpresidentofAmerenandwas appointedtotheAmerenboard.InApril2014,herelinquishedhispositionsatAmerenMissouriandwaselectedchief executiveofficerofAmeren.InJuly2014,BaxterwaselectedchairmanoftheAmerenboard.MartinJ.Lyons,Jr.48ExecutiveVicePresidentandChiefFinancialOfficerLyonsjoinedAmerenServicesin2001.In2008,Lyonswaselectedseniorvicepresidentandprincipalaccountingofficerof theAmerenCompanies.In2009,LyonswasalsoelectedchieffinancialofficeroftheAmerenCompanies.In2013,Lyonswas electedexecutivevicepresidentandchieffinancialofficeroftheAmerenCompanies,andrelinquishedhisdutiesasprincipal accountingofficer.GregoryL.Nelson57SeniorVicePresident,GeneralCounsel,andSecretaryNelsonjoinedAmerenMissouriin1995.NelsonwaselectedvicepresidentandtaxcounselofAmerenServicesin1999and vicepresidentofAmerenMissouri,CIPS,andCILCOin2003andofIPin2004.In2010,Nelsonwaselectedvicepresident,tax anddeputygeneralcounselofAmerenServices.HeremainedvicepresidentofAmerenMissouriandtheAmerenIllinois companies.In2011,Nelsonwaselectedseniorvicepresident,generalcounselandsecretaryoftheAmerenCompanies.BruceA.Steinke53SeniorVicePresident,Finance,andChiefAccountingOfficerSteinkejoinedAmerenServicesin2002.In2008,hewaselectedvicepresidentandcontrollerofAmeren,theAmerenIllinois companies,andAmerenServices.In2009,SteinkerelinquishedhispositionsattheAmerenIllinoiscompanies.In2013, Steinkewaselectedseniorvicepresident,finance,andchiefaccountingofficeroftheAmerenCompanies.
27 SUBSIDIARIES:
NameAgePositionsandOfficesHeldMarkC.Birk50SeniorVicePresident,CorporatePlanningandOversight(AmerenServices)BirkjoinedAmerenMissouriin1986.In2005,Birkwaselectedvicepresident,poweroperations,ofAmerenMissouri.In 2012,Birkwaselectedseniorvicepresident,corporateplanning,ofAmerenServices.InNovember2014,hewasalsoelected seniorvicepresident,oversight,ofAmerenServices.MaureenA.Borkowski57ChairmanandPresident(ATXI)BorkowskijoinedAmerenMissouriin1981.Sheleftthecompanyin2000andrejoinedAmerenin2005asvicepresident,transmission,ofAmerenServices.In2011,BorkowskiwaselectedchairmanandpresidentofATXI.In2011,shewasalso electedseniorvicepresident,transmission,ofAmerenServices.DanielF.Cole61ChairmanandPresident(AmerenServices)ColejoinedAmerenMissouriin1976.HewaselectedseniorvicepresidentofAmerenMissouriandAmerenServicesin1999andofCIPSin2001.HewaselectedseniorvicepresidentofCILCOin2003andofIPin2004.In2009,Colewaselected chairmanandpresidentofAmerenServices;heremainedseniorvicepresidentofAmerenMissouriandtheAmerenIllinois
companies.FadiM.Diya52SeniorVicePresidentandChiefNuclearOfficer(AmerenMissouri)DiyajoinedAmerenMissouriin2005.In2008,DiyawaselectedvicepresidentofnuclearoperationsatAmerenMissouri.InJanuary2014,DiyawaselectedseniorvicepresidentandchiefnuclearofficerofAmerenMissouri.RichardJ.Mark59ChairmanandPresident(AmerenIllinois)MarkjoinedAmerenServicesin2002.Hewaselectedseniorvicepresident,customeroperationsofAmerenMissouriin2005.In2012,MarkrelinquishedhispositionatAmerenMissouriandwaselectedchairmanandpresidentofAmerenIllinois.MichaelL.Moehn45ChairmanandPresident(AmerenMissouri)MoehnjoinedAmerenServicesin2000.In2008,hewaselectedseniorvicepresident,corporateplanningandbusinessriskmanagement,ofAmerenServices.In2012,MoehnrelinquishedhispositionatAmerenServicesandwaselectedseniorvice presidentofcustomeroperationsofAmerenIllinois.Subsequentlyin2012,MoehnrelinquishedhispositionatAmerenIllinois andwaselectedseniorvicepresident,customeroperations,ofAmerenMissouri.InApril2014,Moehnwaselectedchairman andpresidentofAmerenMissouri.CharlesD.Naslund62ExecutiveVicePresident(AmerenMissouri)NaslundjoinedAmerenMissouriin1974.In2008,hewaselectedchairman,presidentandchiefexecutiveofficerofAER.In2011,Naslundassumedthepositionofseniorvicepresident,generationandenvironmentalprojects,ofAmerenMissouriand relinquishedhispositionsofchairman,president,andchiefexecutiveofficerofAER.In2013,Naslundrelinquishedhis positionatAmerenMissouriandwaselectedexecutivevicepresidentofAmerenServices.Subsequentlyin2013,Naslundwas electedexecutivevicepresidentofAmerenMissouri.NaslundretiredfromeachofhispositionswithAmereneffective March1,2015.Officersaregenerallyelectedorappointedannuallybytherespectiveboardofdirectorsofeachcompany,followingtheelectionofboardmembersattheannualmeetingsofshareholders.Nospecialarrangementorunderstandingexistsbetween anyoftheabove-namedexecutiveofficersandtheAmerenCompaniesnor,toourknowledge,withanyotherpersonor personspursuanttowhichanyexecutiveofficerwasselectedasanofficer.Therearenofamilyrelationshipsamongthe executiveofficersorbetweentheexecutiveofficersandanydirectorsoftheAmerenCompanies.Alloftheabove-named executiveofficershavebeenemployedbyanAmerencompanyformorethanfiveyearsinexecutiveormanagementpositions.
28 PARTIIITEM5.MARKETFORREGISTRANTS'COMMONEQUITY,RELATEDSTOCKHOLDERMATTERS,ANDISSUERPURCHASEOFEQUITYSECURITIESAmeren'scommonstockislistedontheNYSE(tickersymbol:AEE).Amerencommonshareholdersofrecordtotaled54,755onJanuary31,2015.Thefollowingtablepresentsthepriceranges,closingprices,anddividendsdeclaredperAmerencommonshareforeachquarterduring2014and2013.HighLowCloseDividendsDeclared2014QuarterEnded:March31............................................................$42.24$35.22$41.20$0.40June30.............................................................41.9237.6740.880.40September30
........................................................40.9636.6538.330.40December31
.........................................................48.1438.2546.130.412013QuarterEnded:March31............................................................$35.12$30.64$35.02$0.40June30.............................................................36.7432.3434.440.40September30
........................................................36.7032.6134.840.40December31
.........................................................37.3134.1836.160.40ThereisnotradingmarketforthecommonstockofAmerenMissouriandAmerenIllinois.AmerenholdsalloutstandingcommonstockofAmerenMissouriandAmerenIllinois.ThefollowingtablesetsforththequarterlycommonstockdividendpaymentsmadebyAmerenanditsregistrantsubsidiariesduring2014and2013:(Inmillions) 2014QuarterEnded 2013QuarterEndedRegistrantDecember31September30June30March31December31September30June30March31AmerenMissouri
..........$72 (a)$113$78$77$140$140$90$90AmerenIllinois
...........----65151515 Ameren.................9997979797979797(a)Additionally,duringthefourthquarterof2014,AmerenMissourireturnedcapitalof$215milliontoAmeren(parent).OnFebruary13,2015,theboardofdirectorsofAmerendeclaredaquarterlydividendonAmeren'scommonstockof41centspershare.ThecommonsharedividendispayableMarch31,2015,toshareholdersofrecordonMarch11,2015.ForadiscussionofrestrictionsontheAmerenCompanies'paymentofdividends,seeLiquidityandCapitalResourcesinManagement'sDiscussionandAnalysisofFinancialConditionandResultsofOperationsunderPartII,Item7,ofthisreport.PurchasesofEquitySecuritiesAmeren,AmerenMissouri,andAmerenIllinoisdidnotpurchaseequitysecuritiesreportableunderItem703ofRegulationS-KduringtheperiodfromOctober1,2014,toDecember31,2014.
29 PerformanceGraphThefollowinggraphshowsAmeren'scumulativetotalshareholderreturnduringthefiveyearsendedDecember31,2014.ThegraphalsoshowsthecumulativetotalreturnsoftheS&P500IndexandtheEdisonElectricInstituteIndex(EEIIndex),whichcomprisesmostinvestor-ownedelectricutilitiesintheUnitedStates.Thecomparisonassumesthat$100wasinvested onDecember31,2009,inAmerencommonstockandineachoftheindicesshown,anditassumesthatallofthedividends werereinvested.
100 2014 2013 2012 2011 2010 2009 AEE S&P 500 I nd ex EEI I nd ex 50 150 200 250December31,200920102011201220132014Ameren(AEE).....................................$100.00$106.85$132.24$128.89$158.94$210.96S&P500Index
....................................100.00115.06117.49136.29180.43 205.13EEIIndex.........................................100.00107.04128.44131.12148.18 191.02Amerenmanagementcautionsthatthestockpriceperformanceshowninthegraphaboveshouldnotbeconsideredindicativeofpotentialfuturestockpriceperformance.
30 ITEM6.SELECTEDFINANCIALDATAFortheyearsendedDecember31,(Inmillions,exceptpershareamounts)20142013201220112010 Ameren (a):Operatingrevenues
..........................................$6,053$5,838$5,781$6,148$6,188Operatingincome (b)..........................................
1,2541,1841,1881,0331,175Incomefromcontinuingoperations
..............................
593518522437523Income(loss)fromdiscontinuedoperations,netoftaxes (c)...........
(1)(223)(1,496)89(372)Netincome(loss)attributabletoAmerenCorporation
................
586289(974)519139Commonstockdividends
.....................................
390388382375368Continuingoperationsearningspershare-basic
...................
2.422.112.131.792.15Continuingoperationsearningspershare-diluted
.................
2.402.102.131.792.15Commonstockdividendspershare
.............................
1.611.601.601.5551.54AsofDecember31:Totalassets (d)..............................................$22,676$21,042$22,230$23,723$23,511Long-termdebt,excludingcurrentmaturities
......................
6,1205,5045,8025,8536,029TotalAmerenCorporationstockholders'equity
.....................
6,7136,5446,6167,9197,730AmerenMissouri:Operatingrevenues
..........................................$3,553$3,541$3,272$3,383$3,197Operatingincome (b)..........................................
785803845609711Netincomeavailabletocommonstockholder
......................
390395416287364Dividendstoparent
..........................................
340460400403235AsofDecember31:Totalassets
................................................$13,541$12,904$13,043$12,757$12,504Long-termdebt,excludingcurrentmaturities
......................
3,8793,6483,8013,7723,949Totalstockholders'equity
.....................................
4,0523,9934,0544,0374,153AmerenIllinois:Operatingrevenues
..........................................$2,498$2,311$2,525$2,787$3,014Operatingincome
...........................................
450415377458498Netincomeavailabletocommonstockholder
......................
201160141193248Dividendstoparent
..........................................
-110189327133AsofDecember31:Totalassets
................................................$8,381$7,454$7,282$7,213$7,406Long-termdebt,excludingcurrentmaturities
......................
2,2411,8561,5771,6571,657Totalstockholders'equity
.....................................
2,6612,4482,4012,4522,576(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.(b)IncludesregulatorydisallowanceassociatedwiththeTaumSaukincidentof$89millionrecordedatAmerenandAmerenMissourifortheyearendedDecember31,2011.(c)SeeNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8,ofthisreportforadditionalinformation.
(d)Includestotalassetsfromdiscontinuedoperationsof$15million,$165million,$1,611million,$3,721million,and$3,825millionatDecember31,2014,2013,2012,2011,and2010,respectively.ITEM7.MANAGEMENT'SDISCUSSIONANDANALYSISOFFINANCIALCONDITIONANDRESULTSOFOPERATIONSAmeren,headquarteredinSt.Louis,Missouri,isapublicutilityholdingcompanyunderPUHCA2005,administeredbytheFERC.Ameren'sprimaryassetsareits equityinterestsinitssubsidiaries,includingAmeren MissouriandAmerenIllinois.Ameren'ssubsidiariesare separate,independentlegalentitieswithseparate businesses,assets,andliabilities.DividendsonAmeren's commonstockandthepaymentofotherexpensesby Amerendependondistributionsmadetoitbyits
subsidiaries.BelowisasummarydescriptionofAmerenMissouriandAmerenIllinois.Amoredetaileddescriptioncanbe foundinNote1-SummaryofSignificantAccounting PoliciesunderPartII,Item8,ofthisreport.
AmerenMissourioperatesarate-regulatedelectricgeneration,transmission,anddistributionbusinessandarate-regulatednaturalgastransmissionand distributionbusinessinMissouri.
AmerenIllinoisoperatesrate-regulatedelectricand naturalgastransmissionanddistributionbusinessesin
Illinois.Amerenhasvariousothersubsidiariesresponsibleforactivitiessuchastheprovisionofsharedservices.Ameren alsohasasubsidiary,ATXI,thatoperatesaFERCrate-regulatedelectrictransmissionbusiness.ATXIisdeveloping MISO-approvedelectrictransmissionprojects,includingthe IllinoisRivers,SpoonRiver,andMarkTwainprojects.
AmerenisalsopursuingreliabilityprojectswithinAmeren Missouri'sandAmerenIllinois'serviceterritoriesaswellas competitiveelectrictransmissioninvestmentopportunities outsideoftheseterritories,includinginvestmentsoutsideof
MISO.31 Unlessotherwisestated,thefollowingsectionsofManagement'sDiscussionandAnalysisofFinancialConditionandResultsofOperationsexcludediscontinued operationsforallperiodspresented.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsunder PartII,Item8,ofthisreportforadditionalinformation regardingthatpresentation.ThefinancialstatementsofAmerenarepreparedonaconsolidatedbasisandthereforeincludetheaccountsofits majority-ownedsubsidiaries.AmerenMissouriandAmeren Illinoishavenosubsidiaries,andthereforetheirfinancial statementsarenotpreparedonaconsolidatedbasis.All intercompanytransactionshavebeeneliminated.Alltabular dollaramountsareinmillions,unlessotherwiseindicated.Inadditiontopresentingresultsofoperationsandearningsamountsintotal,wepresentcertaininformationin centspershare.Theseamountsreflectfactorsthatdirectly affectAmeren'searnings.Webelievethatthispershare informationhelpsreaderstounderstandtheimpactofthese factorsonAmeren'searningspershare.Allreferencesin thisreporttoearningspersharearebasedonaverage dilutedcommonsharesoutstanding.
OVERVIEWIn2014,Amerensuccessfullyexecuteditsstrategytoinvestinandtogrowitsutilitiesthroughinvestmentinrate-regulatedinfrastructurewhileremainingfocusedon operationalimprovementanddisciplinedcostmanagement, leadingtoanimprovedearnedreturnonequity.During 2014,Amerencontinuedtomakeprogressonthethree elementsofitsstrategy:(1)toinvestinandtooperateits utilitiesinamannerconsistentwithexistingregulatory frameworks;(2)toenhanceregulatoryframeworksandto advocateforresponsibleenergypolicies;and(3)tocreate andtocapitalizeonopportunitiesforinvestmentforthe benefitofitscustomersandshareholders.Theseresults, alongwithconfidenceinAmeren'slong-termoutlook,led theboardofdirectorstoincreaseAmeren'squarterly dividendrateinOctober2014.In2014,AmerenMissouricompletedseveralkeyinfrastructureprojects,includinganuclearreactorvessel headreplacementprojectattheCallawayenergycenter, electrostaticprecipitatorupgradesatthecoal-firedLabadie energycenter,anewsubstationinSt.Louis,andthe O'Fallonenergycenter.InJuly2014,AmerenMissourifiled arequestwiththeMoPSCseekingapprovaltoincreaseits annualrevenuesforelectricservice.Therequest,as amendedinFebruary2015,seeksanannualrevenue increaseofapproximately$190million.InFebruary2015, theMoPSCstaffrecommendedanincreaseinannual revenuesof$89millioninthisproceeding.Adecisionby theMoPSCisexpectedbyMay2015,withnewrates effectivebyJune2015.Additionally,inDecember2014, AmerenMissourifiledanewproposedenergyefficiency planwiththeMoPSCundertheMEEIAfor2016through
2018.AmerenMissouricontinuestoseekamodernizedregulatoryframeworkthatreducesregulatorylagandsupportsincreasedinvestmenttoupgradeagingelectric infrastructureandtoadvocateforresponsibleenergy policies,notablyintheenvironmentalarena.InOctober 2014,AmerenMissourifileditsintegratedresourceplan withtheMoPSCwhichtargetstoachievetheCO 2 emissionsreductionsproposedintheEPA'sCleanPowerPlanby 2035,ratherthantheEPA'sfinaltargetdateof2030orits interimtargetdatesbeginningin2020.AmerenMissouri's planoutlineditsongoingtransitiontoamorefuel-diverse generationportfoliooverthenext20years,whichit believesmaximizestheuseofitscurrentgenerationfleetfor thebenefitofitscustomerswhileleveragingenergy efficiency,environmentalcontrols,renewableenergy resources,andlowercostgenerationtomeetfutureneeds.AmerenIllinoiscontinuedtoimplementitselectricandnaturalgasdistributionsystemmodernizationactionplan, includingtheinstallationofadvancedelectricandupgraded naturalgasmeters.InDecember2014,theICCauthorized anelectricdeliveryservicerateincreasethatwaswithin
$1millionofAmerenIllinois'revisedrequest,which demonstratedthattheformularatemakingframeworkis workingasintended.InJanuary2015,AmerenIllinoisfiled arequestwiththeICCseekingapprovaltoincreaseits annualrevenuesfornaturalgasdeliveryserviceby
$53million.AdecisionbytheICCinthisproceedingis requiredbyDecember2015,withnewratesexpectedtobe effectiveinJanuary2016.AlsoinJanuary2015,Ameren IllinoisreceivedapprovalforitsQIPriderundertheCSRA andsubsequentlybeganincludingqualifiedinvestments andrecordingrevenueunderthisregulatoryframework.
AmerenIllinoiswillstartrecoveringcostsfromthese investmentsinMarch2015.AmerenIllinoiscontinuestoseekenhancementstoitsregulatoryframeworks.Onthisfront,legislationwaspassed bytheIllinoisGeneralAssembly,whichisawaitingthe governor'sapproval,thatwouldextendtheIEIMA'sformula ratemakingframeworkuntiltheendof2019withfurther extensionpossiblethrough2022.Additionally,inits January2015naturalgasdeliveryserviceraterequest, AmerenIllinoisproposedtoimplementadecouplingrider mechanismforresidentialandsmallnonresidential customersthatwouldensurethatchangesinsalesvolumes donotaffectAmerenIllinois'annualnaturalgasrevenues forthesecustomers.InadditiontotheAmerenMissouriinvestmentsdiscussedabove,Amereninvestedmorethan$1billionin AmerenIllinoiselectricandnaturalgasdeliveryservice infrastructureandFERC-regulatedelectrictransmission serviceinfrastructurein2014.Amerencontinuestofocus oncreatingandcapitalizingonopportunitiesforinvestment forthebenefitofitscustomersandshareholders.Tothat end,Amerenidentifiedneededreliabilityprojectswithin AmerenMissouri'sandAmerenIllinois'serviceterritories whilepursuingcompetitiveelectrictransmissioninvestment opportunitiesbothwithinandoutsideoftheseservice territories,includinginvestmentsoutsideofMISO, leveragingpastsuccessasanexperiencedtransmission 32 developerandoperator.Consistentwithpreviousplans,Amerenintendstoallocatesignificantandincreasing amountsofdiscretionarycapitaltoFERC-regulatedelectric transmissionserviceprojectsandAmerenIllinoiselectric andnaturalgasdeliveryserviceprojects.Amerenplansto invest$2.3billioninFERC-regulatedelectrictransmission projectsfrom2015through2019,with$1.3billioninvested byATXIandtheremaining$1billionbyAmerenIllinois.InNovember2013,acustomergroupfiledacomplaintcasewiththeFERCseekingareductioninthe12.38%
allowedbasereturnoncommonequityundertheMISO tariff.InJanuary2015,theFERCscheduledthecasefor hearings,requiringaninitialdecisiontobeissuednolater thanNovember30,2015.Astheoriginal15-monthrefund periodendedinFebruary2015,anothercustomercomplaint casewasfiledinFebruary2015,seekingareductioninthe allowedbasereturnoncommonequity.Inthefourth quarterof2014,Amerenrecordedareserverepresentingits estimateofthepotentialrefundfromNovember2013 throughDecember31,2014.InNovember2014,wefiledarequestwiththeFERCtoincludeanincentiveadderofupto50basispointsonthe allowedbasereturnoncommonequityforparticipationin anRTO.FERCapprovedtherequesttoimplementthe incentiveadderprospectivelyfromJanuary6,2015,andto defercollectionoftheincentiveadderuntiltheissuanceof thefinalorderaddressingtheinitialMISOcase.
EarningsAmerenreportednetincomeof$586million,or$2.40perdilutedshare,for2014,and$289million,or$1.18perdilutedshare,for2013.NetincomeattributabletoAmeren Corporationfromcontinuingoperationswas$587million, or$2.40perdilutedshare,for2014,and$512million,or
$2.10perdilutedshare,for2013.Ameren'searningsfrom continuedoperationsincreasedin2014,comparedwith 2013,dueinparttoincreasedelectricdeliveryservice earningsatAmerenIllinoisandincreasedelectric transmissionearningsatAmerenIllinoisandATXI,which includedareserveforapotentialreductionintheFERC-allowedreturnonequityforelectrictransmissionservices.
Additionally,earningsfromcontinuingoperationswere favorablyaffectedbyincreasedratesforAmerenIllinois' naturalgasdeliveryservice,effectiveJanuary2014,aswell asdecreasedinterestchargesresultingfromhigher-cost debtbeingreplacedwithlower-costdebt.Interestcharges alsodeclinedin2014,comparedwith2013,asaresultof theICC'sDecember2014orderallowingpartialrecoveryof certainpreviouslydisalloweddebtpremiumcosts,which werechargedtoearningsin2013.Theabsencein2014ofa reductioninAmerenMissourirevenuesresultingfroma July2013MoPSCorderthatrequiredarefundtocustomers fortheearningsassociatedwithcertainlong-termpartial requirementssalesrecognizedfortheperiodfrom October1,2009,toMay31,2011,alsopositivelyaffected earningscomparisons.Ameren'searningsfromcontinuing operationswerenegativelyaffectedbyincreased depreciationandamortizationexpenses,ahighereffectiveincometaxrate,andincreasedotheroperationsand maintenanceexpenses.
LiquidityCashgeneratedbyoperatingactivitiesassociatedwithcontinuingoperationsof$1.6billion,short-termborrowings,andavailablecashonhandwereusedtofund capitalexpendituresof$1.8billionandtopaydividendsto commonstockholdersof$390million.AtDecember31, 2014,Ameren,onaconsolidatedbasis,hadavailable liquidity,intheformofcashonhandandamountsavailable underexistingcreditagreements,of$1.4billion.CapitalSpendingIn2014,Amerenmadesignificantinvestmentsinitsutilities.Itexpectsthattrendtocontinueintothefuture.From2015through2019,Ameren'scumulativecapital spendingisprojectedtorangebetween$8.6billionand
$9.3billion.Theprojectedspendingincludesapproximately
$3.7billion,$3.8billion,and$1.3billionforAmeren Missouri,AmerenIllinois,andATXI,respectively.RESULTSOFOPERATIONSOurresultsofoperationsandfinancialpositionareaffectedbymanyfactors.Weather,economicconditions,andtheactionsofkeycustomerscansignificantlyaffectthe demandforourservices.Ourresultsarealsoaffectedby seasonalfluctuationsinwinterheatingandsummercooling demands.AlmostallofAmeren'srevenuesaresubjectto stateorfederalregulation.Thisregulationhasamaterial impactonthepriceswechargeforourservices.Ameren Missouriprincipallyusescoal,nuclearfuel,andnaturalgas forfuelinitsoperations.Thepricesforthesecommodities canfluctuatesignificantlybecauseoftheglobaleconomic andpoliticalenvironment,weather,supplyanddemand, andmanyotherfactors.Wehavenaturalgascostrecovery mechanismsforourIllinoisandMissourinaturalgas deliveryservicebusinesses,apurchasedpowercost recoverymechanismforAmerenIllinois'electricdelivery servicebusiness,andaFACforAmerenMissouri'selectric utilitybusiness.AmerenIllinois'electricdeliveryservice utilitybusiness,pursuanttotheIEIMA,conductsanannual reconciliationoftherevenuerequirementnecessaryto reflecttheactualcostsincurredinagivenyearwiththe revenuerequirementincludedincustomerratesforthat year,withrecoveriesfromorrefundstocustomersmadein asubsequentyear.IncludedinAmerenIllinois'revenue requirementreconciliationisaformulaforthereturnon equity,whichisequaltotheaverageofthemonthlyyields of30-yearUnitedStatesTreasurybondsplus580basis points.Therefore,AmerenIllinois'annualreturnonequityis directlycorrelatedtoyieldsonUnitedStatesTreasury bonds.AmerenIllinoisandATXIhavereceivedFERC approvaltouseacompany-specific,forward-lookingrate formulaframeworkinsettingtheirtransmissionrates.
Theseforward-lookingratesareupdatedeachJanuarywith forecastedinformation.Areconciliationduringtheyear, whichadjustsfortheactualrevenuerequirementandactual 33 salesvolumes,isusedtoadjustbillingratesinasubsequentyear.Fluctuationsininterestratesand conditionsinthecapitalandcreditmarketsalsoaffectour costofborrowingandourpensionandpostretirement benefitscosts.Weemployvariousriskmanagement strategiestoreduceourexposuretocommodityriskand otherrisksinherentinourbusiness.Thereliabilityof AmerenMissouri'senergycentersandourtransmission anddistributionsystemsandthelevelofpurchasedpower costs,operationsandmaintenancecosts,andcapital investmentarekeyfactorsthatweseektooptimizeour resultsofoperations,financialposition,andliquidity.EarningsSummaryThefollowingtablepresentsasummaryofAmeren'searningsfortheyearsendedDecember31,2014,2013,and 2012:201420132012Netincome(loss)attributabletoAmeren Corporation
......................$586$289$(974)Earnings(loss)percommonshare-diluted..........................
2.401.18(4.01)NetincomeattributabletoAmerenCorporation-continuingoperations...
587512516Earningspercommonshare-diluted-continuingoperations
..............
2.402.102.132014versus2013NetincomeattributabletoAmerenCorporationfromcontinuingoperationsin2014increased$75million,or$0.30perdilutedshare,from2013.Theincreasewasdue toa$41millionincreaseinnetincomefromtheAmeren Illinoissegmentanda$39milliondecreaseinnetlossfrom Ameren(parent)andnonregistrantsubsidiariespartially offsetbya$5milliondecreaseinnetincomefromthe AmerenMissourisegment.Comparedwith2013,2014earningspersharefromcontinuingoperationswerefavorablyaffectedby:
highernaturalgasratesatAmerenIllinoispursuanttoaDecember2013order(8centspershare);
decreasedinterestexpense,excludingtheeffectsofthe ICC'sDecember2014orderdiscussedbelow,primarily duetothematurityofhigher-costdebtreplacedwith issuancesoflower-costdebt(8centspershare);
theabsencein2014ofareductioninAmerenMissouri revenuesresultingfromaJuly2013MoPSCorderthat requiredarefundtocustomersassociatedwithcertain long-termpartialrequirementssalesrecognizedfrom October1,2009,toMay31,2011(7centspershare);
theICC'sDecember2014orderallowingpartial recoveryofcertainpreviouslydisalloweddebtpremium coststhatwerechargedtoearningsin2013(7cents pershare);
anincreaseinAmerenIllinois'andATXI'selectric transmissionearningsunderformularatemakingdueto additionalratebaseinvestment,partiallyoffsetbyareserveforapotentialrefundtocustomersduetoa reductionintheFERC-allowedreturnonequity(6cents pershare).ATXI'snetincomewas$13million(5cents pershare)and$7million(3centspershare)in2014 and2013,respectively; anincreaseinAmerenIllinois'electricdeliveryservice earningsunderformularatemakingpursuanttothe IEIMAduetoincreasedratebaseinvestment(estimated at5centspershare);
higherrevenuesassociatedwithAmerenMissouri's MEEIAlostrevenuerecoverymechanism(4centsper share),whichwerepartiallyoffsetbylowerrevenues resultingfromreduceddemandduetocustomer energyefficiencyprograms;and increasedelectricandnaturalgasdemandprimarily resultingfromcolderwintertemperaturesinearly2014 andwarmerearlysummertemperatures(estimatedat 1centpershare).Comparedwith2013,2014earningspersharefromcontinuingoperationswereunfavorablyaffectedby:
increaseddepreciationandamortizationexpenses,primarilyresultingfromelectricdistributioncapital additionsatAmerenMissouri(5centspershare);
anincreaseintheeffectivetaxrate(4centspershare);
andincreasedotheroperationsandmaintenanceexpenses forAmerenMissouriandforAmerenIllinois'natural gasbusiness,primarilyduetoincreasedlaborand litigationcosts,offsetinpartbydecreasedcostsat Ameren(parent),primarilyresultingfromthe substantialeliminationofcostspreviouslyincurredin supportofthedivestedmerchantgenerationbusiness (3centspershare).Thecentspershareinformationpresentedaboveisbasedonthedilutedaveragesharesoutstandingin2013.2013versus2012NetincomeattributabletoAmerenCorporationfromcontinuingoperationsin2013decreased$4million,or$0.03perdilutedshare,from2012.Thedecreasewasdue toa$21milliondecreaseinnetincomefromtheAmeren Missourisegmentanda$2millionincreaseinnetlossfrom Ameren(parent)andnonregistrantsubsidiaries,partially offsetbya$19millionincreaseinnetincomefromthe AmerenIllinoissegment.Comparedwith2012,2013earningspersharefromcontinuingoperationswereunfavorablyaffectedby:
thecostoftheCallawayenergycenter'sscheduledrefuelingandmaintenanceoutagein2013.Therewas noCallawayrefuelingandmaintenanceoutagein2012 (10centspershare);
areductioninAmerenMissourirevenuesresulting fromaJuly2013MoPSCorderthatrequiredarefund tocustomersassociatedwithcertainlong-termpartial requirementssalesrecognizedfortheperiodfrom October1,2009,toMay31,2011(7centspershare);
34 theabsencein2013ofareductioninAmerenMissouri'spurchasedpowerexpenseandanincrease ininterestincome,eachasaresultofaFERC-ordered refundreceivedin2012fromEntergyforapower purchaseagreementthatexpiredin2009(7centsper
share);decreasedelectricdemandresultingfromsummer temperaturesin2013thatweremilderthanthe warmer-than-normaltemperaturesin2012,partially offsetbyincreasedelectricandnaturalgasdemand resultingfromwintertemperaturesin2013thatwere colderthanwintertemperaturesin2012(estimatedat 6centspershare);
theICC'sDecember2013ordersdisallowingrecovery ofaportionofthepremiumpaidbyAmerenIllinoisfor atenderofferinAugust2012torepurchasesenior securednotes(4centspershare);and increaseddepreciationprimarilyduetoinfrastructure additionsatAmerenMissouri(3centspershare).Comparedwith2012,2013earningspersharefromcontinuingoperationswerefavorablyaffectedby:
higherAmerenMissouriutilityratespursuanttoanorderissuedbytheMoPSC,whichbecameeffectivein January2013,partiallyoffsetbyincreasedregulatoryassetamortizationasdirectedbytherateorder.This excludesMEEIAimpacts,whicharediscussed separatelybelow(12centspershare);
higherrevenuesassociatedwithAmerenMissouri's MEEIAlostrevenuerecoverymechanism(9centsper share),whichwerepartiallyoffsetbylowerrevenues resultingfromreduceddemandduetocustomer energyefficiencyprograms; higherelectrictransmissionratesatAmerenIllinoisand ATXI(8centspershare);and anincreaseinAmerenIllinois'electricdeliveryservice earningsunderformularatemaking,favorablyaffected primarilybyanincreasedratebase,ahigherallowed returnonequity,andlowerrequiredcontributions pursuanttotheIEIMA(estimatedat8centspershare).Thecentspershareinformationpresentedaboveisbasedonthedilutedaveragesharesoutstandingin2012.ForadditionaldetailsregardingtheAmerenCompanies'resultsofoperations,includingexplanationsof Margins,OtherOperationsandMaintenanceExpenses, DepreciationandAmortization,TaxesOtherThanIncome Taxes,OtherIncomeandExpenses,InterestCharges, IncomeTaxes,andIncome(Loss)fromDiscontinued Operations,NetofTaxes,seethemajorheadingsbelow.
35 BelowisatableofincomestatementcomponentsbysegmentfortheyearsendedDecember31,2014,2013,and2012:
2014 Ameren Missouri Ameren IllinoisOther/IntersegmentEliminationsTotalElectricmargins
...........................................................$2,443$1,179$11$3,633Naturalgasmargins
.......................................................82443-525Otherrevenues
...........................................................1-(1)-Otheroperationsandmaintenance
............................................(946)(771)26(1,691)Depreciationandamortization
................................................(473)(263)(9)(745)Taxesotherthanincometaxes
...............................................(322)(138)(8)(468)Otherincome
.............................................................489-57Interestcharges
...........................................................(211)(112)(18)(341)Incometaxes
.............................................................(229)(143)(5)(377)Income(loss)fromcontinuingoperations
......................................393204(4)593Lossfromdiscontinuedoperations,netoftaxes
..................................--(1)(1)Netincome(loss)
.........................................................393204(5)592Netincomeattributabletononcontrollinginterests-continuingoperations
.............(3)(3)-(6)Netincome(loss)attributabletoAmerenCorporation
.............................$390$201$(5)$586 2013Electricmargins...........................................................$2,407$1,081$(3)$3,485Naturalgasmargins.......................................................83399(2)480Otherrevenues...........................................................13(4)-Otheroperationsandmaintenance
............................................(915)(693)(9)(1,617)Depreciationandamortization
................................................(454)(243)(9)(706)Taxesotherthanincometaxes
...............................................(319)(132)(7)(458)Otherincomeand(expenses)................................................471(5)43Interestcharges
...........................................................(210)(143)(45)(398)Income(taxes)benefit
......................................................(242)(110)41(311)Income(loss)fromcontinuingoperations......................................398163(43)518Lossfromdiscontinuedoperations,netoftaxes..................................--(223)(223)Netincome(loss).........................................................398163(266)295Netincomeattributabletononcontrollinginterests-continuingoperations.............(3)(3)-(6)Netincome(loss)attributabletoAmerenCorporation.............................$395$160$(266)$289 2012Electricmargins...........................................................$2,340$1,034$(11)$3,363Naturalgasmargins.......................................................75378(1)452Otherrevenues...........................................................1-(1)-Otheroperationsandmaintenance
............................................(827)(684)-(1,511)Depreciationandamortization
................................................(440)(221)(12)(673)Taxesotherthanincometaxes
...............................................(304)(130)(9)(443)Otherincomeand(expenses)................................................49(10)(6)33Interestcharges
...........................................................(223)(129)(40)(392)Income(taxes)benefit
......................................................(252)(94)39(307)Income(loss)fromcontinuingoperations......................................419144(41)522Lossfromdiscontinuedoperations,netoftaxes..................................--(1,496)(1,496)Netincome(loss).........................................................419144(1,537)(974)Netincomeattributabletononcontrollinginterests-continuingoperations.............(3)(3)-(6)Netlossattributabletononcontrollinginterests-discontinuedoperations.............--
6 6Netincome(loss)attributabletoAmerenCorporation.............................$416$141$(1,531)$(974) 36 MarginsThefollowingtablepresentsthefavorable(unfavorable)variationsbysegmentforelectricandnaturalgasmarginsfromthepreviousyear.Electricmarginsaredefinedaselectricrevenueslessfuelandpurchasedpowercosts.Naturalgasmarginsaredefinedasgasrevenueslessgaspurchasedforresale.ThetablecoverstheyearsendedDecember31,2014,2013,and 2012.Weconsiderelectricandnaturalgasmarginsusefulmeasurestoanalyzethechangeinprofitabilityofourelectricand naturalgasoperationsbetweenperiods.Wehaveincludedtheanalysisbelowasacomplementtothefinancialinformationwe provideinaccordancewithGAAP.However,thesemarginsmaynotbeapresentationdefinedunderGAAP,andtheymaynot becomparabletoothercompanies'presentationsormoreusefulthantheGAAPinformationweprovideelsewhereinthis
report.2014versus2013 Ameren Missouri AmerenIllinoisOther (a)AmerenElectricrevenuechange:Effectofweather(estimate)(b)......................................................$8$(5)$-$3Baserates(estimate).............................................................-56-56Off-systemsalesandtransmissionservicesrevenues(includedinbaserates)
.................(12)--(12)RecoveryofFACunder-recovery (c)..................................................(14)--(14)FACprudencereviewchargein2013................................................25--25MEEIA(energyefficiency)recoverymechanisms.......................................22--22Transmissionservicesrevenues....................................................-351853Illinoispass-throughpowersupplycosts.............................................-(38)-(38)Reserveforpotentialtransmissionrefunds............................................-(21)(4)(25)Baddebt,energyefficiencyprograms,andenvironmentalremediationcostriders..............-25-25Salesvolume(excludingtheestimatedeffectofabnormalweather)
.........................(22)3-(19)
Other.........................................................................26(3)5Totalelectricrevenuechange........................................................$9$61$11$81Fuelandpurchasedpowerchange:Energycostsincludedinbaseratesandother..........................................$18$-$3$21Effectofweather(estimate)(b)......................................................(5)--(5)RecoveryofFACunder-recovery (c)..................................................14--14Transmissionservicesexpenses....................................................-(1)-(1)Illinoispass-throughpowersupplycosts.............................................-38-38Totalfuelandpurchasedpowerchange................................................$27$37$3$67Netchangeinelectricmargins
......................................................$36$98$14$148Naturalgasrevenuechange:Effectofweather(estimate)(b)......................................................$6$32$-$38Baserates(estimate).............................................................-32-32Baddebt,energyefficiencyprograms,andenvironmentalremediationcostriders..............-4-4Grossreceiptstax...............................................................-3-3Pass-throughpurchasedgascosts..................................................(1)57-56Salesvolume(excludingtheeffectofabnormalweather)andother.........................(2)121Totalnaturalgasrevenuechange.....................................................$3$129$2$134Gaspurchasedforresalechange:Effectofweather(estimate)(b)......................................................$(5)$(28)$-$(33)Pass-throughpurchasedgascosts..................................................1(57)-(56)Totalgaspurchasedforresalechange.................................................$(4)$(85)$-$(89)Netchangeinnaturalgasmargins
...................................................$(1)$44$2$45 37 2013versus2012 Ameren Missouri AmerenIllinoisOther (a)AmerenElectricrevenuechange:Effectofweather(estimate)(b)......................................................$(29)$(20)$-$(49)Baserates(estimate).............................................................17857-235Off-systemsalesandtransmissionservicesrevenues(includedinbaserates).................11--11TransmissionservicesrevenueexcludedfromFACuntil2013
.............................(32)-(32)RecoveryofFACunder-recovery (c)..................................................67--67FACprudencereviewcharge
.......................................................(25)--(25)MEEIA(energyefficiency)recoverymechanisms.......................................72--72Transmissionservicesrevenues....................................................-251035Grossreceiptstax...............................................................12--12Illinoispass-throughpowersupplycosts.............................................-(316)-(316)HurricaneSandyreliefrecovery.....................................................(7)(10)-(17)Baddebt,energyefficiencyprograms,andenvironmentalremediationcostriders..............-(15)-(15)Salesvolume(excludingtheestimatedeffectofabnormalweather).........................42-6 Other.........................................................................(4)(1)(4)(9)Totalelectricrevenuechange........................................................$247$(278)$6$(25)Fuelandpurchasedpowerchange:Energycostsincludedinbaseratesandother..........................................$(88)$-$2$(86)Effectofweather(estimate)(b)......................................................(1)9-8RecoveryofFACunder-recovery (c)..................................................(67)--(67)FERC-orderedpowerpurchasesettlement
.............................................(24)--(24)Illinoispass-throughpowersupplycosts.............................................-316-316Totalfuelandpurchasedpowerchange................................................$(180)$325$2$147Netchangeinelectricmargins
......................................................$67$47$8$122Naturalgasrevenuechange:Effectofweather(estimate)(b)......................................................$29$110$-$139Baserates(estimate).............................................................-2-2HurricaneSandyreliefrecovery.....................................................-(3)-(3)Grossreceiptstax...............................................................17-8Pass-throughpurchasedgascosts
..................................................(12)(56)-(68)Salesvolume(excludingtheeffectofabnormalweather)andother.........................41(1)4Totalnaturalgasrevenuechange.....................................................$22$61$(1)$82Gaspurchasedforresalechange:Effectofweather(estimate)(b)......................................................$(26)$(96)$-$(122)Pass-throughpurchasedgascosts..................................................1256-68Totalgaspurchasedforresalechange.................................................$(14)$(40)$-$(54)Netchangeinnaturalgasmargins
...................................................$8$21$(1)$28(a)PrimarilyincludesamountsforATXIandintercompanyeliminations.(b)Representstheestimatedvariationresultingprimarilyfromtheeffectsofchangesincoolingandheatingdegree-daysonelectricandnaturalgasdemandcomparedwiththeprioryear;thisisbasedontemperaturereadingsfromtheNationalOceanicandAtmosphericAdministration weatherstationsatlocalairportsinourserviceterritories.(c)RepresentsthechangeinthenetenergycostsrecoveredundertheFACthroughcustomerrates,withcorrespondingoffsetstofuelexpenseduetotheamortizationofapreviouslyrecordedregulatoryasset.2014versus2013AmerenCorporationAmeren'selectricmarginsincreased$148million,or4%,in2014comparedwith2013.Ameren'snaturalgasmarginsincreased$45million,or9%,in2014compared with2013.TheseresultswereprimarilydrivenbyAmeren MissouriandAmerenIllinoisresults,asdiscussedbelow.
Ameren'selectricmarginsalsoreflecttheresultsof operationsofATXI.ATXI'stransmissionrevenuesincreased
$14millionin2014comparedwith2013,reflecting increasedratebaseinvestmentandrecoverablecostsunder forward-lookingformularatemaking.AmerenMissouriAmerenMissourihasaFACcostrecoverymechanismthatallowsAmerenMissouritorecover,throughcustomer rates,95%ofchangesinnetenergycostsgreaterorless thantheamountsetinbaserateswithoutatraditionalrate proceeding,subjecttoMoPSCprudencereview.Netenergy costsincludefuelandpurchasedpowercosts,including transportationchargesandrevenues,netofoff-system sales.AmerenMissouriaccrues,asaregulatoryasset,net energycoststhatexceedtheamountsetinbaserates(FAC under-recovery).Netrecoveryofthesecoststhrough customerratesdoesnotaffectAmerenMissourielectric margins,asincreasesinrevenueareoffsetbya 38 correspondingincreaseinfuelexpensetoreducethepreviouslyrecognizedFACregulatoryasset.AmerenMissouri'selectricmarginsincreased$36million,or1%,in2014comparedwith2013.The followingitemshadafavorableeffectonAmeren Missouri'selectricmargins:
Theabsencein2014ofaJuly2013MoPSCFACprudencerevieworder,whichdecreased2013revenues by$25million.AmerenMissourirecordedaFAC prudencereviewchargein2013foritsestimated obligationtorefundtoitselectriccustomersthe earningsassociatedwithsalesrecognizedbyAmeren MissourifromOctober1,2009,toMay31,2011.See Note2-RateandRegulatoryMattersunderPartII, Item8,ofthisreportforadditionalinformation regardingtheFACprudencereviewcharge.
HigherrevenuesassociatedwiththeMEEIAenergy efficiencyprogramcostrecoverymechanismandlost revenuerecoverymechanism($7millionand
$15million,respectively),whichincreasedrevenuesby acombined$22million.Thehigherrevenueswere drivenbygreatercustomerparticipationinthesecond yearoftheMEEIAprogram,whichledtohigher recoveryoflostrevenues.Thelostrevenuerecovery mechanismhelpscompensateAmerenMissourifor lowersalesvolumesfromenergy-efficiency-related volumereductionsincurrentandfutureperiods.See OtherOperationsandMaintenanceExpensesinthis sectionfortherelatedoffsettingincreaseincustomer energyefficiencyprogramcosts.
Wintertemperaturesin2014thatwerecolderthanin 2013,asheatingdegree-daysincreased5%,which resultedinhighersalesvolumesandcontributedtoan estimated$3millionincreaseinmargins.Thechangein weathermarginisthesumoftheeffectofweatherin electricrevenues(+$8million)andtheeffectofweather infuelandpurchasedpower(-$5million)intheabove
table.AmerenMissouri'selectricmarginswereunfavorablyaffectedbylowersalesvolumesprimarilycausedbythe MEEIAprograms.Lowersalesvolumesfromenergy-efficiency-relatedvolumereductionsareoffsetbytheMEEIA lostrevenuerecoverymechanism.Excludingtheestimated effectofabnormalweather,totalretailsalesvolumes decreased1%,whichdecreasedrevenuesbyanestimated
$22million,partiallyoffsetbyadecreaseinnetenergycosts of$6million.Thedecreaseinnetenergycostsisthesumof thechangeinenergycostsincludedinbaserates
(+$18million)andthechangeinoff-systemsalesand transmissionservicesrevenues(-$12million)intheabove
table.AmerenMissourihasacostrecoverymechanismfornaturalgaspurchasedonbehalfofitscustomers.These pass-throughpurchasedgascostsdonotaffectAmeren Missouri'snaturalgasmarginsastheyareoffsetbya correspondingamountinrevenues.AmerenMissouri'snaturalgasmarginswerecomparablebetweentheyears.AmerenIllinoisAmerenIllinoishasacostrecoverymechanismforpowerpurchasedonbehalfofitscustomers.Thesepass-throughpowersupplycostsdonotaffectAmerenIllinois' electricmargins,astheyareoffsetbyacorresponding amountinrevenues.AmerenIllinoisparticipatesintheIEIMA'sperformance-basedformularatemakingframework.The IEIMAprovidesforanannualreconciliationoftheelectric deliveryservicerevenuerequirementnecessarytoreflect theactualcostsincurredinagivenyearwiththerevenue requirementincludedincustomerratesforthatyear, includinganallowedreturnonequity.SeeOtherOperations andMaintenanceExpensesinthissectionforadditional informationregardingtherevenuerequirement.Ifthe currentyear'srevenuerequirementisgreaterthanthe revenuerequirementreflectedinthatyear'scustomerrates, anincreasetoelectricoperatingrevenueswithanoffsettoa regulatoryassetisrecordedtoreflecttheexpectedrecovery ofthoseadditionalcostsfromcustomerswithinthenext twoyears.Ifthecurrentyear'srevenuerequirementisless thantherevenuerequirementreflectedinthatyear's customerrates,areductiontoelectricoperatingrevenues withanoffsettoaregulatoryliabilityisrecordedtoreflect theexpectedrefundtocustomerswithinthenexttwoyears.
SeeNote2-RateandRegulatoryMattersunderPartII, Item8,ofthisreportforadditionalinformationregarding AmerenIllinois'revenuerequirementreconciliation pursuanttotheIEIMA.AmerenIllinois'electricmarginsincreased$98million,or9%,in2014comparedwith2013.Thefollowingitems hadafavorableeffectonAmerenIllinois'electricmargins:
Electricdeliveryservicerevenuesthatincreasedbyanestimated$56million,primarilycausedbyincreased ratebaseandhigherrecoverablecostsunderformula ratemakingpursuanttotheIEIMA.
Transmissionservicesmarginthatincreasedby
$34million,largelyduetoahighertransmission servicesrevenuerequirement,drivenprimarilyby increasedratebaseinvestment.Thechangein transmissionservicesmarginisthesumofthechange intransmissionservicesrevenues(+$35million)and thechangeintransmissionservicesexpenses
(-$1million)intheabovetable.
Anetincreaseinrecoveryofbaddebtcharge-offs, customerenergyefficiencyprogramcosts,and environmentalremediationcoststhroughrate-adjustmentmechanisms,whichincreasedrevenuesby
$25million.SeeOtherOperationsandMaintenance Expensesinthissectionfortherelatedoffsettingnet increaseinbaddebt,customerenergyefficiency,and environmentalremediationcosts.
Excludingtheestimatedeffectofabnormalweather, residentialretailsalesvolumesthatincreased1%,
whichincreasedrevenuesby$3million.
39 ThefollowingitemshadanunfavorableeffectonAmerenIllinois'electricmarginsin2014comparedwith 2013:ReservesrecordedforestimatedrefundsregardingFERCproceedingsfromaNovember2013complaint caseseekingareductionintheallowedbasereturnon commonequityfortheMISOtariff,aJune2014order regardingacquisitionpremiums,andothermatters, whichdecreasedrevenuesby$21million.SeeNote2-RateandRegulatoryMattersunderPartII,Item8,of thisreportforadditionalinformation.
Summertemperaturesin2014thatweremilderthanin 2013,ascoolingdegree-daysdecreased6%,which resultedinlowersalesvolumesandcontributedtoan estimated$5millionreductioninrevenues.AmerenIllinoishasacostrecoverymechanismfornaturalgaspurchasedonbehalfofitscustomers.These pass-throughpurchasedgascostsdonotaffectAmeren Illinois'naturalgasmarginsastheyareoffsetbya correspondingamountinrevenues.AmerenIllinois'naturalgasdeliveryservicemarginsincreased$44million,or11%,in2014comparedwith 2013.ThefollowingitemshadafavorableeffectonAmeren Illinois'naturalgasmargins:
HighernaturalgasdeliveryservicerateseffectiveJanuary2014,whichincreasedrevenuesbyan estimated$32million.
Wintertemperaturesin2014thatwerecolderthanin 2013asheatingdegree-daysincreased6%,which resultedinhighersalesvolumesandincreasedmargins byanestimated$4million.Thechangeinweather marginisthesumoftheeffectofweatherinrevenues
(+$32million)andtheeffectofweatheringas purchasedforresale(-$28million)intheabovetable.
Increasedgrossreceiptstaxesduetohighernatural gasratesandhighersalesvolumesasaresultofcolder wintertemperaturesin2014,whichincreasedrevenues by$3million.SeeTaxesOtherThanIncomeTaxesin thissectionfortherelatedoffsettingincreasetogross receiptstaxes.
A$4millionnetincreaseinrecoveryofbaddebt charge-offs,customerenergyefficiencyprogramcosts, andenvironmentalremediationcoststhroughrate-adjustmentmechanisms.SeeOtherOperationsand MaintenanceExpensesinthissectionfortherelated offsettingnetincreaseinbaddebt,customerenergy efficiency,andenvironmentalremediationcosts.2013versus2012AmerenCorporationAmeren'selectricmarginsincreased$122million,or4%,in2013comparedwith2012.Ameren'snaturalgas marginsincreased$28million,or6%,in2013compared with2012.TheseresultswereprimarilydrivenbyAmeren MissouriandAmerenIllinoisresults,asdiscussedbelow.
Ameren'selectricmarginsalsoreflecttheresultsofoperationsofATXI.ATXI'stransmissionrevenuesincreased
$10millionin2013comparedwith2012,duetothe inclusionofits2013ratebaseinvestmentandrecoverable costsunderforward-lookingformularatemaking.AmerenMissouriAmerenMissouri'selectricmarginsincreased$67million,or3%,in2013comparedwith2012.ThefollowingitemshadafavorableeffectonAmerenMissouri's electricmargins:
HigherelectricbaserateseffectiveJanuary2013asaresultoftheDecember2012MoPSCelectricrateorder, whichincreasedrevenuesbyanestimated
$178million,partiallyoffsetbyanincreaseinnet energycostsof$78million.Theincreaseinnetenergy costsisthesumofthechangeinenergycostsincluded inbaserates(-$89million)andthechangeinoff-systemsalesandtransmissionservicesrevenues
(+$11million)intheabovetable.Transmission servicesrevenueswereexcludedfromFACuntil2013
($32million).
HigherrevenuesassociatedwiththeMEEIAenergy efficiencyprogramcostrecoverymechanismandlost revenuerecoverymechanism($35millionand
$37million,respectively),effectiveJanuary2013, whichincreasedrevenuesbyacombined$72million.
Thelostrevenuerecoverymechanismhelps compensateAmerenMissouriforlowersalesfrom energy-efficiency-relatedvolumereductionsincurrent andfutureperiods.SeeOtherOperationsand MaintenanceExpensesinthissectionfortherelated offsettingincreaseinenergyefficiencyprogramcosts.
Increasedgrossreceiptstaxes,dueprimarilytothe higherbaserates,whichincreasedrevenuesby
$12million.SeeTaxesOtherThanIncomeTaxesinthis sectionfortherelatedoffsettingincreasetogross receiptstaxes.
Excludingtheestimatedeffectofabnormalweather, totalretailsalesvolumesthatincreased1%,which increasedrevenuesbyanestimated$4million.ThefollowingitemshadanunfavorableeffectonAmerenMissouri'selectricmarginsin2013comparedwith
2012:Summertemperaturesin2013thatweremilderthanthewarmer-than-normaltemperaturesin2012,as coolingdegree-daysdecreased22%,whichresultedin lowersalesvolumesandcontributedtoanestimated
$30milliondecreaseinmargins.Thechangeinweather marginisthesumoftheeffectofweatherinelectric revenues(-$29million)andtheeffectofweatherinfuel andpurchasedpower(-$1million)intheabovetable.
AreductioninrevenuesresultingfromaJuly2013 MoPSCFACorder.AmerenMissourirecordedaFAC prudencereviewchargeforitsestimatedobligationto refundtoitselectriccustomerstheearningsassociated withsalesrecognizedbyAmerenMissourifrom October1,2009,toMay31,2011,whichdecreased revenuesby$25million.SeeNote2-Rateand 40 RegulatoryMattersunderPartII,Item8,ofthisreportforadditionalinformationregardingtheFACprudence reviewcharge.
Theabsencein2013ofareductioninpurchasedpower expenseasaresultofaFERC-orderedrefundreceived in2012fromEntergyforapowerpurchaseagreement thatexpiredin2009,whichdecreasedmarginsby
$24million.
Theabsencein2013ofrecoveryoflaborandbenefit costsforcrewsassistingwithHurricaneSandypower restorationin2012,whichdecreasedmarginsby
$7millionandwasfullyoffsetbyarelateddecreasein operationsandmaintenancecosts,withnooverall effectonnetincome.Thecostsrelatedtostorm assistancewerereimbursedbytheutilitiesreceiving theassistance.AmerenMissouri'snaturalgasmarginsincreased$8million,or11%,in2013comparedwith2012.The followingitemshadafavorableeffectonAmerenMissouri's naturalgasmargins:
Excludingthattheestimatedeffectofabnormalweather,revenuesincreasedby$4million,drivenby 11%highernaturalgastransportationsalesand2%
higherretailsales.
Wintertemperaturesin2013thatwerecolderthanthe warmer-than-normaltemperaturesin2012,asheating degree-daysincreased35%,whichresultedinhigher salesvolumesandincreasedmarginsbyanestimated
$3million.Thechangeinweathermarginisthesumof theeffectofweatherinrevenues(+$29million)andthe effectofweatheringaspurchasedforresale
(-$26million)intheabovetable.
Increasedgrossreceiptstaxesduetohighersalesasa resultofcolderwinterweatherin2013comparedwith 2012,whichincreasedrevenuesby$1million.See TaxesOtherThanIncomeTaxesinthissectionforthe relatedoffsettingincreasetogrossreceiptstaxes.AmerenIllinoisAmerenIllinois'electricmarginsincreased$47million,or5%,in2013comparedwith2012.Thefollowingitems hadafavorableeffectonAmerenIllinois'electricmargins:
Electricdeliveryservicerevenuesthatincreasedbyanestimated$57million,primarilycausedbyincreased ratebase,ahigherallowedreturnonequity,andhigher recoverablecostsunderformularatemakingpursuant totheIEIMA.
Transmissionservicesrevenuesthatincreasedby
$25millionduetotheimplementationofa2013 forward-lookingratecalculationwhichincorporatedthe ratebaseincreasein2013,pursuanttoa2012FERC order.In2012,rateswerebasedonahistoricalperiod.ThefollowingitemshadanunfavorableeffectonAmerenIllinois'electricmarginsin2013comparedwith
2012:Adecreaseinrecoveryofbaddebtcharge-offs,customerenergyefficiencyprogramcosts,andenvironmentalremediationcoststhroughrate-adjustmentmechanisms,whichdecreasedrevenuesby
$15million.SeeOtherOperationsandMaintenance Expensesinthissectionfortherelatedoffsetting decreaseinbaddebt,customerenergyefficiency,and environmentalremediationcosts.
Summertemperaturesin2013thatweremilderthan thewarmer-than-normaltemperaturesin2012,as coolingdegree-daysdecreased21%,whichresultedin lowersalesvolumesandcontributedtoanestimated
$11milliondecreaseinmargins.Thechangeinweather marginisthesumoftheeffectofweatherinelectric revenues(-$20million)andtheeffectofweatherinfuel andpurchasedpower(+$9million)intheabovetable.
Theabsencein2013ofrecoveryoflaborandbenefit costsforcrewsassistingwithHurricaneSandypower restorationin2012,whichdecreasedmarginsby
$10millionandwasfullyoffsetbyarelateddecreasein operationsandmaintenancecosts,withnooverall effectonnetincome.Thecostsrelatedtostorm assistancewerereimbursedbytheutilitiesreceiving theassistance.AmerenIllinois'naturalgasmarginsincreased$21million,or6%,in2013comparedwith2012.The followingitemshadafavorableeffectonAmerenIllinois' naturalgasmargins:
Wintertemperaturesin2013thatwerecolderthanwarmer-than-normaltemperaturesin2012,asheating degree-daysincreased29%,whichresultedinhigher salesvolumesandincreasedmarginsbyanestimated
$14million.Thechangeinweathermarginisthesum oftheeffectofweatherinrevenues(+$110million)and theeffectofweatheringaspurchasedforresale
(-$96million)intheabovetable.
Increasedgrossreceiptstaxesduetohighersalesasa resultofcolderwinterweatherin2013comparedwith 2012,whichincreasedrevenuesby$7million.See TaxesOtherThanIncomeTaxesinthissectionforthe relatedoffsettingincreasetogrossreceiptstaxes.
Highernaturalgasdeliveryservicerateseffectiveinlate January2012,whichincreasedrevenuesbyan estimated$2million.AmerenIllinois'naturalgasmarginswereunfavorablyaffectedbytheabsencein2013ofrecoveryoflaborand benefitcostsforcrewsassistingwithHurricaneSandy powerrestorationin2012,whichdecreasedmarginsby
$3millionandwasfullyoffsetbyarelateddecreasein operationsandmaintenancecosts,withnooveralleffecton netincome.OtherOperationsandMaintenanceExpenses2014versus2013AmerenCorporationOtheroperationsandmaintenanceexpensesincreased$74millionin2014comparedwith2013.Otheroperationsandmaintenanceexpensesincreased$31millionatAmeren 41 Missouriandincreased$78millionatAmerenIllinois.PartiallyoffsettingtheincreasesatAmerenMissouriand AmerenIllinoisweredecreasedcorporateexpenses betweenyearsof$35million,primarilyduetothe substantialeliminationofbusinessandadministrativecosts previouslyincurredinsupportofthedivestedmerchant generationbusiness.AmerenMissouriOtheroperationsandmaintenanceexpenseswere$31millionhigherin2014comparedwith2013.Thefollowingitemsincreasedotheroperationsand maintenanceexpensesbetweenyears:
Laborcoststhatincreased$17million,primarilybecauseofwageincreases.
Litigationandasbestosclaimcoststhatincreased
$14milliondue,inpart,totheproceedingsdiscussed inNote2-RateandRegulatoryMattersandNote15-CommitmentsandContingenciesunderPartII,Item8, ofthisreport.
An$8millionincreaseindisposalcostsforlow-level radioactivenuclearwasteattheCallawayenergycenter.
Anincreaseof$7millionincustomerenergyefficiency programcostsduetotheMEEIArequirements.These costswereoffsetbyincreasedelectricrevenuesfrom customerbillings,withnooveralleffectonnetincome.
Areductionof$3millioninunrealizednetMTMgains, resultingfromchangesinthemarketvalueof investmentsusedtosupportAmeren'sdeferred compensationplans.Thefollowingitemsdecreasedotheroperationsandmaintenanceexpensesbetweenyears:
A$13millionreductioninenergycentercosts,primarilyrelatedtocoalhandling.
Adecreaseof$7millioninstorm-relatedcostsdueto fewermajorstormsin2014.
Areductionof$2millioninrefuelingandmaintenance costsassociatedwiththescheduledCallawayoutages.
The2014outagecostswere$36millioncomparedwith 2013outagecostsof$38million.AmerenIllinoisPursuanttotheprovisionsoftheIEIMA,recoverableelectricdeliveryservicecoststhatwereincurredduringthe yearbutnotrecoveredthroughridersareincludedin AmerenIllinois'revenuerequirementreconciliation,which resultsinacorrespondingadjustmenttoelectricoperating revenues,withnooveralleffectonnetincome.These recoverableelectricdeliveryservicecostsincludeother operationsandmaintenanceexpenses,depreciationand amortization,taxesotherthanincometaxes,interest charges,andincometaxes.Otheroperationsandmaintenanceexpenseswere$78millionhigherin2014comparedwith2013.The followingitemsincreasedotheroperationsand maintenanceexpensesbetweenyears:
Anincreaseof$29millioninbaddebt,customerenergyefficiency,andenvironmentalremediationcosts.
TheseexpensesarerecoveredbyAmerenIllinois'rider mechanismsthroughadditionalelectricandnaturalgas revenues,resultinginnooveralleffectonnetincome.
Laborcoststhatincreased$17million,primarily becauseofstaffadditionstomeetenhancedreliability standardsandcustomerservicegoalsrelatedtothe IEIMAandwageincreases.
Anincreaseof$13millioninelectricdistribution maintenanceexpenditures,primarilyrelatedto increasedsystemrepairandvegetationmanagement
work.Asbestosclaimcoststhatincreased$8million.
Anincreaseof$7millionininformationtechnology serviceexpenses,partiallyrelatedtotheIEIMA
implementation.
Anincreaseof$6millioninnaturalgasmaintenance expenditures,primarilyrelatedtopipelineintegrity
compliance.
Anincreaseof$4millioninrentalexpense,primarily relatedtosoftwarefromaffiliatedcompanies.
Areductionof$2millioninunrealizednetMTMgains, resultingfromchangesinthemarketvalueof investmentsusedtosupportAmeren'sdeferred compensationplans.Otheroperationsandmaintenanceexpensesdecreasedbetweenyearsbecauseofareductioninemployeebenefit costsof$12million,primarilyduetolowerpensionand postretirementexpensescausedbychangesinactuarial assumptionsandtheperformanceofplanassets.2013versus2012AmerenCorporationOtheroperationsandmaintenanceexpensesincreased$106millionin2013comparedwith2012.Otheroperations andmaintenanceexpensesincreased$88millionatAmeren Missouriandincreased$9millionatAmerenIllinois.In additiontotheincreasesatAmerenMissouriandAmeren Illinois,corporateexpensesincreased$9millionbetween years,primarilyduetobusinessandadministrativecosts incurredinsupportofthedivestedmerchantgeneration
business.AmerenMissouriOtheroperationsandmaintenanceexpensesincreased$88millionin2013comparedwith2012.Thefollowingitemsincreasedotheroperationsandmaintenance expensesbetweenyears:
Anincreaseof$35millionincustomerenergyefficiencyprogramcostsduetotheMEEIA requirements,whichbecameeffectiveinratesin 42 January2013.Thesecostswereoffsetbyincreasedelectricrevenuesfromcustomerbillings,withno overalleffectonnetincome.
Energycentermaintenancecoststhatincreased
$31million,primarilydueto$38millionincostsforthe scheduled2013Callawayenergycenterrefuelingand maintenanceoutage.Therewasnooutagein2012.The 2013increasewaspartiallyoffsetbya$7million reductionincostsduetofewermajorboileroutagesat coal-firedenergycenters.
Employeebenefitcoststhatincreased$14million, primarilyduetohigherpensionexpenseandincreased amortizationofprior-yearpensiondeferralsfromthe pensionandpostretirementbenefitcosttracker,each asaresultofthe2012MoPSCelectricorder.These costswereoffsetbyincreasedelectricrevenuesfrom customerbillings,withnooveralleffectonnetincome.
Anincreaseof$9millioninstorm-relatedrepaircosts, primarilyduetomajorstormsin2013.Aportionof thesecosts,$7million,wereoffsetbyelectricrevenues fromcustomerbillings.
Anincreaseof$6millioninbaddebtexpensedueto reducedcustomercollectionsandhighercustomer ratesin2013.Otheroperationsandmaintenanceexpensesdecreasedbetweenyearsbecauseoftheabsencein2013ofa
$6millionchargerecordedin2012foracanceledproject.AmerenIllinoisOtheroperationsandmaintenanceexpensesincreased$9millionin2013comparedwith2012.Thefollowingitemsincreasedotheroperationsandmaintenance expensesbetweenyears:
Laborcoststhatincreased$11million,primarilybecauseofstaffadditionstocomplywiththe requirementsoftheIEIMA.
Anincreaseof$8millioninelectricdistribution maintenanceexpenditures,primarilyrelatedto increasedvegetationmanagementwork.
Anincreaseof$3millioninnaturalgasmaintenance expenditures,primarilyrelatedtopipelineintegrity
compliance.Thefollowingitemsdecreasedotheroperationsandmaintenanceexpensesbetweenyears:
Adecreaseof$7millioninbaddebtexpenseduetoadjustmentsunderthebaddebtrider.
Adecreaseof$7millionincustomerenergyefficiency andenvironmentalremediationcosts.DepreciationandAmortization2014versus2013AmerenCorporationDepreciationandamortizationexpensesincreased$39millionin2014comparedwith2013,primarilydueto increasedexpensesatAmerenMissouriandAmerenIllinois asdiscussedbelow.AmerenMissouriDepreciationandamortizationexpensesincreased$19millionin2014comparedwith2013,primarilybecause ofelectricsystemcapitaladditions.AmerenIllinoisDepreciationandamortizationexpensesincreased$20millionin2014comparedwith2013,primarilybecauseofelectricsystemcapitaladditions.2013versus2012AmerenCorporationDepreciationandamortizationexpensesincreased$33millionin2013comparedwith2012,primarilybecause ofincreasedexpensesatAmerenMissouriandAmeren Illinoisasdiscussedbelow.AmerenMissouriDepreciationandamortizationexpensesincreased$14millionin2013comparedwith2012,primarilybecauseofa$6millionincreaseindepreciationexpenserelatedto electricsystemcapitaladditionsanda$6millionincreasein amortizationexpenserelatedtotheDecember2012MoPSC electricrateorderresultinginhigheramortizationofpre-MEEIAcustomerenergyefficiencyprogramcosts,which werereflectedinelectricrateseffectiveinJanuary2013.AmerenIllinoisDepreciationandamortizationexpensesincreased$22millionin2013comparedwith2012,primarilybecauseofnewelectricdepreciationrates,whichincreased depreciationexpenseby$17million,asaresultofa reductionintheusefullivesofexistingelectricmetersthat arebeingreplacedwithadvancedmeteringinfrastructure pursuanttotheIEIMA.Additionally,electricsystemcapital additionsincreaseddepreciationexpense$6million.TaxesOtherThanIncomeTaxes2014versus2013AmerenCorporationTaxesotherthanincometaxesincreased$10millionin2014comparedwith2013,primarilybecauseofincreasedexpensesatAmerenMissouriandAmerenIllinoisas discussedbelow.AmerenMissouriTaxesotherthanincometaxesincreased$3million,primarilybecauseofanincreaseinpropertytaxesresultingfromhighertaxratesandincreasedstateandlocal assessmentsin2014.AmerenIllinoisTaxesotherthanincometaxesincreased$6millionbecauseofa$3millionincreaseingrossreceiptstaxes,as 43 aresultofhighernaturalgasratesandhighersalesvolumes,andbecauseofa$3millionincreaseinproperty taxesbetweenyears.Theincreasedgrossreceiptstaxes wereoffsetbyincreasedgrossreceiptstaxrevenues,with nooveralleffectonnetincome.SeeExciseTaxesinNote1-SummaryofSignificantAccountingPoliciesunderPartII, Item8,ofthisreportforadditionalinformation.2013versus2012AmerenCorporationTaxesotherthanincometaxesincreased$15millionin2013comparedwith2012,primarilybecauseofincreased expensesatAmerenMissouriandAmerenIllinoisas discussedbelow.AmerenMissouriTaxesotherthanincometaxesincreased$15million,primarilybecauseofanincreaseof$13millioningrossreceiptstaxesasaresultofincreasedsales.Theincreased grossreceiptstaxeswereoffsetbyincreasedgrossreceipts taxrevenues,withnooveralleffectonnetincome.See ExciseTaxesinNote1-SummaryofSignificant AccountingPoliciesunderPartII,Item8,ofthisreportfor additionalinformation.AmerenIllinoisTaxesotherthanincometaxesincreased$2million,primarilybecauseofanincreaseof$7millioningrossreceiptstaxesasaresultofincreasednaturalgassales, partiallyoffsetbyadecreaseof$6millioninpropertytaxes, primarilyresultingfromelectricdistributiontaxcredits receivedin2013.OtherIncomeandExpenses2014versus2013AmerenCorporationOtherincome,netofexpenses,increased$14millionin2014comparedwith2013,primarilybecauseofa$4millionreductionincharitablecontributionsatAmeren (parent)duetothetimingofcontributions,anincreasein Ameren(parent)interestincomefromanotereceivable withMarketingCompany,anditemsatAmerenIllinois discussedbelow.SeeNote6-OtherIncomeandExpenses underPartII,Item8,ofthisreportforadditional
information.AmerenMissouriOtherincome,netofexpenses,wascomparablebetweenyears.
AmerenIllinoisOtherincome,netofexpenses,increased$8million,primarilybecauseofincreasedincomefromcustomer-requestedconstruction,andincreasedinterestincomeonboththeIEIMA2013and2014revenuerequirement reconciliationregulatoryassets.Adecreaseintheequity portionofallowanceforfundsusedduringconstruction, primarilyduetoincreasedusageofshort-termdebttofund capitalexpenditures,reducedthefavorableeffectofthe aboveitems.2013versus2012AmerenCorporationOtherincome,netofexpenses,increased$10millionin2013comparedwith2012,primarilybecauseofitemsat AmerenIllinoisdiscussedbelow.AmerenMissouriOtherincome,netofexpenses,decreased$2million,primarilybecauseofadecreaseininterestincomeresultingfromtheabsencein2013ofa2012interestpayment receivedfromEntergyaspartoftheFERC-orderedrefund relatedtoapowerpurchaseagreementthatexpiredin 2009,partiallyoffsetbydecreaseddonations.SeeNote2-RateandRegulatoryMattersunderPartII,Item8,ofthis reportformoreinformationabouttheEntergyrefund receivedin2012.AmerenIllinoisOtherincome,netofexpenses,increased$11million,primarilybecauseofdecreaseddonationsresultingfromtheabsencein2013oftheone-time$7.5millioncontributionin 2012totheIllinoisScienceandEnergyInnovationTrust pursuanttotheIEIMA,inconnectionwithparticipationin theformularatemakingprocess.Additionally,interest incomewashigher,primarilycausedbytheIEIMA's2013 revenuerequirementreconciliationregulatoryasset.InterestCharges2014versus2013AmerenCorporationInterestchargesdecreased$57millionin2014comparedwith2013,primarilybecauseofa$24millionreductionininterestchargesatAmeren(parent),asaresult ofthematurityof$425millionof8.875%seniorunsecured notesinMay2014,whichwasreplacedwithlowercost debt,andadecreaseininterestchargesassociatedwith uncertaintaxpositionsatAmeren(parent).SeeNote13-IncomeTaxesunderPartII,Item8,ofthisreportfor additionalinformationregardinguncertaintaxpositions.
Additionally,interestchargeswereloweratAmerenIllinois asdiscussedbelow.AmerenMissouriInterestchargeswerecomparablebetweenyears.Theabsencein2014ofa2013reductiontointerestchargesassociatedwithuncertaintaxpositionsresultedinhigher interestcharges.SeeNote13-IncomeTaxesunderPartII, Item8,ofthisreportforinformationregardinguncertaintax positions.Thisincreasewaspartiallyoffsetbytheeffectof refinancingactivitiesthatresultedinhigher-costdebtbeing replacedwithlower-costdebt.
44 AmerenIllinoisInterestchargesdecreased$31million.Therewasareductionininterestchargesassociatedwiththeregulatoryliabilityforthe2012IEIMArevenuerequirement reconciliationastherefundobligationwascompleted throughout2014.The2013and2014IEIMArevenue requirementreconciliationswerebothregulatoryassets, which,asdiscussedaboveunderOtherIncomeand Expenses,resultedininterestincome.Thefavorableeffect ofrefinancingactivitiesthatresultedinhigher-costdebt beingreplacedwithlower-costdebtalsodecreasedinterest charges.Additionally,theICCissuedanelectricrateorder inDecember2014,whichresultedinapartialreversalofa chargerecordedin2013associatedwithaDecember2013 ICCelectricrateorderthathaddisallowedtherecoveryfrom customersofcertaindebtpremiumcosts.SeeNote2-RateandRegulatoryMattersunderPartII,Item8,ofthis reportforadditionalinformation.2013versus2012AmerenCorporationInterestchargesincreased$6millionin2013comparedwith2012,primarilyduetoa$5millionincrease ininterestchargesassociatedwithuncertaintaxpositions atAmeren(parent).Inaddition,increasesatAmerenIllinois morethanoffsetdecreasesatAmerenMissourias discussedbelow.AmerenMissouriInterestchargesdecreased$13million.Interestchargesdecreasedbecauseofchangesinuncertaintaxpositions.Additionally,thefavorableeffectofrefinancing activitiesthatresultedinhighercostdebtbeingreplaced withlowercostdebtloweredinterestcharges.AmerenIllinoisInterestchargesincreased$14million,primarilyduetothechargerecordedin2013asaresultoftheICC'sDecember2013electricrateorderdiscussedabove.Also, interestchargesincreasedbecauseofinterestappliedtothe regulatoryliabilityforthe2012revenuerequirement reconciliation.Partiallyoffsettingtheseincreaseswasthe favorableeffectofrefinancingactivitiesthatresultedin highercostdebtbeingreplacedwithlowercostdebt.IncomeTaxesThefollowingtablepresentseffectiveincometaxratesfortheyearsendedDecember31,2014,2013,and2012:201420132012 Ameren........................
39%38%37%AmerenMissouri
.................
37%38%37%AmerenIllinois
..................
41%40%40%SeeNote13-IncomeTaxesunderPartII,Item8,ofthisreportforinformationregardingreconciliationsofeffectiveincometaxrates.Income(Loss)fromDiscontinuedOperations,Netof
TaxesNomaterialactivitywasrecordedassociatedwithdiscontinuedoperationsin2014.Duringtheyearended December31,2013,thelossfromdiscontinuedoperations, netoftaxes,wasprimarilyrelatedtotheimpairmentloss andrelatedincometaxeffectsassociatedwiththeNewAER divestiture.During2012,AER'senergycenterswere impairedunderheldandusedaccountingguidance.See Note16-DivestitureTransactionsandDiscontinued OperationsunderPartII,Item8,ofthisreportforadditional
information.InJanuary2014,MedinaValleycompletedthesaleoftheElgin,GibsonCity,andGrandTowergas-firedenergy centerstoRocklandCapitalforatotalpurchasepriceof
$168million.Amerendidnotrecognizeagainfromthesale toRocklandCapitalforanyvalueinexcessofits
$137.5millioncarryingvalueforthisdisposalgroup, becauseanyexcessamountthatMedinaValleymayreceive, netoftaxesandotherexpenses,overthecarryingvaluewill ultimatelybepaidtoGencoinJanuary2016,pursuantto Ameren'stransactionagreementwithIPH.InDecember2013,AmerencompletedthedivestitureofNewAERtoIPH.Amerendidnotreceiveanycash proceedsfromIPHforthedivestitureofNewAER.Ameren recordedapretaxchargetoearningsrelatedtotheNew AERdivestitureof$201millionfortheyearended December31,2013.In2013,Amerenadjustedthe accumulateddeferredincometaxesonitsconsolidated balancesheettoreflecttheexcessoftaxbasisoverfinancial reportingbasisofitsstockinvestmentinAER.Thischange inbasisresultedinadiscontinuedoperationsdeferredtax expenseof$99million,whichwaspartiallyoffsetbythe expectedtaxbenefitsof$86millionrelatedtothepretax lossfromdiscontinuedoperations,includingthelosson disposal,fortheyearendedDecember31,2013.Thefinal taxbasisoftheAERdisposalgroupandtherelatedtax benefitresultingfromthetransactionwithIPHare dependentupontheresolutionoftaxmattersunderaudit.It isreasonablypossibleinthenext12monthsthesetax auditswillbecompleted.Asaresult,taxexpenseand benefitsultimatelyrealizedfromthedivestituresmaydiffer materiallyfromthoserecordedasofDecember31,2014, includingthefinalresolutionofAmeren'suncertaintax
positions.In2012,Amerenrecordeda$2.58billionpretaxnoncashlong-livedassetimpairmentchargetoreducethe carryingvalueofAER'senergycenterstotheirestimated fairvaluesundertheaccountingguidanceforheldandused
assets.LIQUIDITYANDCAPITALRESOURCESOurtariff-basedgrossmarginsareourprincipalsourceofcashfromoperatingactivities.Adiversifiedretailcustomermix,primarilyconsistingofrate-regulated residential,commercial,andindustrialcustomers,provides uswithareasonablypredictablesourceofcash.Inaddition 45 tousingcashgeneratedfromoperatingactivities,weuseavailablecash,creditagreementborrowings,commercial paperissuances,moneypoolborrowings,or,inthecaseof AmerenMissouriandAmerenIllinois,othershort-term borrowingsfromaffiliatestosupportnormaloperationsand temporarycapitalrequirements.Wemayreduceourshort-termborrowingswithcashfromoperationsor,atour discretion,withlong-termborrowings,or,inthecaseof AmerenMissouriandAmerenIllinois,withcapital contributionsfromAmeren(parent).Weexpecttomake significantcapitalexpendituresoverthenextfiveyearsas weinvestinourelectricandnaturalgasutilityinfrastructure tosupportoverallsystemreliability,environmental compliance,andotherimprovements.Weintendtofund thosecapitalexpenditureswithavailablecashonhand,cash generatedfromoperatingactivities,andcommercialpaper anddebtissuancessothatwemaintainanequityratioaround50%,assumingconstructiveregulatory environments.Weplantoimplementourlong-term financingplansfordebt,equity,orequity-linkedsecurities tofinanceouroperationsappropriately,tofundscheduled debtmaturities,andtomaintainfinancialstrengthand
flexibility.Theuseofcashgeneratedfromoperatingactivitiesandshort-termborrowingstofundcapitalexpendituresand otherlong-terminvestmentsmayperiodicallyresultina workingcapitaldeficit,definedascurrentliabilities exceedingcurrentassets,aswasthecaseatDecember31, 2014.TheworkingcapitaldeficitasofDecember31,2014, wasprimarilytheresultofincreasedcommercialpaper issuances.Withthe2012CreditAgreements,Amerenhas accessto$2.1billionofcreditcapacity,ofwhich
$1.4billionwasavailableatDecember31,2014.Thefollowingtablepresentsnetcashprovidedby(usedin)operating,investingandfinancingactivitiesfortheyearsendedDecember31,2014,2013,and2012:NetCashProvidedBy(UsedIn)OperatingActivitiesNetCashProvidedby(UsedIn)InvestingActivitiesNetCashProvidedby(UsedIn)FinancingActivities201420132012201420132012201420132012 Ameren (a)-continuingoperations
.....$1,557$1,636$1,404$(1,856)$(1,440)$(1,153)$141$(149)$(426)
Ameren (a)-discontinuedoperations...
(6)57286 139(283)(157)
---AmerenMissouri
..................
9501,1431,004 (837)(687)(703)
(113)(603)(354)AmerenIllinois
....................
445651519 (828)(695)(437) 38345(103)(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.CashFlowsfromOperatingActivities2014versus2013AmerenCorporationAmeren'scashfromoperatingactivitiesassociatedwithcontinuingoperationsdecreased$79millionin2014, comparedwith2013.Thefollowingitemscontributedtothe
decrease:An$89milliondecreaseinthecashassociatedwithAmerenMissouri'sunder-recoveredFACcosts.
Deferralsandrefundsexceededrecoveriesin2014by
$49million,whilerecoveriesexceededdeferralsin 2013by$40million.
The2014refundstoAmerenIllinoiscustomersof
$67millionasrequiredundertheprovisionsofthe IEIMAforthe2012revenuerequirementreconciliation adjustment,comparedwithnorefundsin2013.
A$65milliondifferenceinexpendituresforcustomer energyefficiencyprogramscomparedwithamounts collectedfromAmerenMissouriandAmerenIllinois
customers.
A$50millionincreaseincoalpurchasescausedby increasedvolumesandprices.AmerenMissouri purchasedlesscoalin2013,due,inpart,todelivery disruptionsfromflooding.
A$42milliondifferenceinpurchasedpower commoditycostsincurredcomparedwithamounts collectedfromAmerenIllinoiscustomers.
A$39millionincreaseinrebatepaymentsprovidedfor customer-installedsolargenerationatAmeren Missouri,whichwillbecollectedfromcustomersina futureperiod.
A$38milliondecreaseinnaturalgascommoditycosts collectedfromcustomersunderthePGAs,primarily relatedtoAmerenIllinois.
Adecreaseof$26millionatAmerenMissouriand AmerenIllinoisforstormrestorationassistance providedtononaffiliatedutilities,primarilydueto HurricaneSandyin2013.
A$26millionincreaseinpaymentstocontractorsat AmerenIllinoisforadditionalreliability,maintenance, andIEIMAprojects.
Refundsof$24milliontocustomersasrequiredbya September2014FERCorderinAmerenIllinois' wholesaledistributionratecase.
A$23millionincreaseinthevalueofnaturalgasheld instorageatAmerenIllinoisbecauseofincreased marketpricesandtimingofinjectionsandwithdrawals.
A$22milliondecreaseassociatedwithstock-based compensationawards.
A$21millionincreaseinlaborcostsatAmerenIllinois, primarilybecauseofwageincreasesandstaffadditions tomeetenhancedreliabilityandcustomerservicegoals relatedtotheIEIMA.
A$21milliondifferenceintransmissionservicecosts incurredcomparedwithamountscollectedfrom customersprimarilyatAmerenIllinois.
46 Anet$19milliondecreaseinreturnsofcollateralpostedwithcounterpartiesduetochangesatAmeren MissouriandAmerenIllinoisdiscussedbelow.
A$17millionincreaseinthepurchaseofreceivables fromalternativeretailelectricsupplierscomparedwith amountscollectedfromAmerenIllinoiscustomers.
A$16milliondecreaseincontributionsreceivedby AmerenIllinoisfromcustomersforfutureconstruction.
An$8millionincreaseinpropertytaxpaymentsat AmerenMissouricausedbyhigherassessedproperty taxvaluesandincreasedpropertytaxrates.ThefollowingitemspartiallyoffsetthedecreaseinAmeren'scashfromoperatingactivitiesassociatedwith continuingoperationsduring2014,comparedwith2013:
Electricandnaturalgasmargins,asdiscussedinResultsofOperationsexcludingcertainnoncashitems, thatincreasedby$166million.
Incometaxrefundsof$41millionin2014,primarily duetofederalsettlementsforthetaxyears2007 through2011,comparedwithincometaxpaymentsin 2013of$116million.SeeNote1-Summaryof SignificantAccountingPoliciesunderPartII,Item8,of thisreportforincometaxpayment(refund)information asitrelatestocontinuinganddiscontinuedoperations.
A$76milliondecreaseinpensionandpostretirement benefitplancontributions.InadditiontotheAmeren MissouriandAmerenIllinoisamountsdiscussed below,Ameren'snonregistrantsubsidiaries' contributionstothepensionandpostretirementbenefit plansdecreased$30million.
A$74millionincreaseinthecollectionofcustomer receivablebalancescomparedtotheprioryeardriven bythetimingandamountofrevenuesineachperiod.
A$29milliondecreaseininterestpayments,primarily duetorefinancingactivityatAmerenMissouriand Ameren(parent).SeeNote1-SummaryofSignificant AccountingPoliciesunderPartII,Item8,ofthisreport forinterestpaymentinformationasitrelatesto continuinganddiscontinuedoperations.
A$27millioninsurancereceiptatAmerenMissouri relatedtotheDecember2005breachoftheupper reservoirattheTaumSaukpumped-storage hydroelectricenergycenter.Ameren'scashfromoperatingactivitiesassociatedwithdiscontinuedoperationsdecreasedin2014,compared with2013.The2013activityrelatedtothedisposedNew AERandtheElgin,GibsonCityandGrandTowerenergy centers.The2014activityrelatedtotransactioncostsand taxpaymentsassociatedwiththeElgin,GibsonCityand GrandTowerenergycenters.AmerenMissouriAmerenMissouri'scashfromoperatingactivitiesdecreased$193millionin2014,comparedwith2013.Thefollowingitemscontributedtothedecrease:
A$129millionincreaseinincometaxpaymentspaidtoAmeren(parent)pursuanttothetaxallocationagreement,resultingprimarilyfromfewerdeductions forcapitalexpendituresfortaxyears2007through 2013,whichcausedincreasedpaymentsin2014.The increasewaspartiallyoffsetbyareductioninpayments duetotheexpecteduseofnetoperatingloss carryforwardsin2014.
An$89milliondecreaseinthecashassociatedwith AmerenMissouri'sunder-recoveredFACcosts.
Deferralsandrefundsexceededrecoveriesin2014by
$49million,whilerecoveriesexceededdeferralsin 2013by$40million.
A$50millionincreaseincoalpurchasescausedby increasedvolumesandprices.AmerenMissouri purchasedlesscoalin2013,due,inpart,todelivery disruptionsfromflooding.
A$39millionincreaseinrebatepaymentsprovidedfor customer-installedsolargeneration,whichwillbe collectedfromcustomersinafutureperiod.
A$28milliondifferenceinexpendituresforcustomer energyefficiencyprogramscomparedwithamounts collectedfromcustomers.
An$11milliondecreaseinnaturalgascommodity costscollectedfromcustomersunderthePGA.
Adecreaseof$10millionforstormrestoration assistanceprovidedtononaffiliatedutilities,primarily duetoHurricaneSandyin2013.
An$8millionincreaseinpropertytaxpaymentscaused byhigherassessedpropertytaxvaluesandincreased propertytaxrates.ThefollowingitemspartiallyoffsetthedecreaseinAmerenMissouri'scashfromoperatingactivitiesduring 2014,comparedwith2013:
A$76millionincreaseinthecollectionofcustomerreceivablebalancescomparedtotheprioryeardriven bythetimingandamountofrevenuesineachperiod.
A$27millioninsurancereceiptrelatedtotheDecember 2005breachoftheupperreservoirattheTaumSauk pumped-storagehydroelectricenergycenter.
A$26milliondecreaseinpensionandpostretirement benefitplancontributions.
Electricandnaturalgasmargins,asdiscussedin ResultsofOperationsexcludingcertainnoncashitems, thatincreasedby$20million.
Anet$10millionincreaseinreturnsofcollateral postedwithcounterpartiesprimarilyresultingfrom changesinthemarketpricesofpowerandnaturalgas andincontractedcommodityvolumes.
A$9milliondecreaseininterestpayments,primarily duetorefinancingactivity.AmerenIllinoisAmerenIllinois'cashfromoperatingactivitiesdecreased$206millionin2014,comparedwith2013.The followingitemscontributedtothedecrease:
The2014refundstocustomersof$67millionasrequiredundertheprovisionsoftheIEIMAforthe2012 revenuerequirementreconciliationadjustment, comparedwithnorefundsin2013.
47 A$42milliondifferenceinpurchasedpowercommoditycostsincurredcomparedwithamounts collectedfromcustomers.
A$37milliondifferenceinexpendituresforcustomer energyefficiencyprogramscomparedwithamounts collectedfromcustomers.
Anet$29milliondecreaseinreturnsofcollateral postedwithcounterparties,primarilyresultingfrom changesinthemarketpricesofpowerandnaturalgas andincontractedcommodityvolumes.
A$27milliondecreaseinnaturalgascommoditycosts collectedfromcustomersunderthePGA.
A$26millionincreaseinpaymentstocontractorsfor additionalreliability,maintenance,andIEIMAprojects.
Refundstocustomersof$24millionasrequiredbya September2014FERCorderinthewholesale distributionratecase.
A$23millionincreaseinthevalueofnaturalgasheld instoragebecauseofincreasedmarketpricesandthe timingofinjectionsandwithdrawals.
A$21millionincreaseinlaborcosts,primarilybecause ofwageincreasesandstaffadditionstomeetenhanced reliabilityandcustomerservicegoalsrelatedtothe
IEIMA.A$20milliondifferenceintransmissionservicecosts incurredcomparedwithamountscollectedfrom
customers.
A$17millionincreaseinthepurchaseofreceivables fromalternativeretailelectricsupplierscomparedwith amountscollectedfromcustomers.
A$16milliondecreaseincontributionsreceivedfrom customersforfutureconstruction.
Theabsenceof$16millionreceivedin2013forstorm restorationassistanceprovidedtononaffiliatedutilities, primarilyduetoHurricaneSandy.ThefollowingitemspartiallyoffsetthedecreaseinAmerenIllinois'cashfromoperatingactivitiesduring2014, comparedwith2013:
Electricandnaturalgasmargins,asdiscussedinResultsofOperationsexcludingcertainnoncashitems, thatincreasedby$126million.
A$21millionincreaseinincometaxrefundsfrom Ameren(parent)pursuanttothetaxallocation agreement,resultingprimarilyfromtheexpecteduseof netoperatinglosscarryforwardsin2014.
A$20milliondecreaseinpensionandpostretirement benefitplancontributions.2013versus2012AmerenCorporationAmeren'scashfromoperatingactivitiesassociatedwithcontinuingoperationsincreased$232millionin2013, comparedwith2012.Thefollowingitemscontributedtothe
increase:Theabsencein2013of$138millioninpremiumspaidtodebtholdersin2012inconnectionwiththe repurchaseofthetenderedprincipalofmultipleseriesofAmerenMissouriandAmerenIllinoisseniorsecured
notes.A$115millionincreaseinthecashassociatedwith AmerenMissouri'sunder-recoveredFACcosts.
Recoveriesoutpaceddeferralsin2013by$41million, whiledeferralsandrefundsoutpacedrecoveriesin 2012by$74million.
Electricandnaturalgasmargins,asdiscussedin ResultsofOperationsexcludingcertainnoncashitems, thatincreasedby$109million.
A$94millionincreaseduetochangesinAmeren Missouricoalinventorylevels.In2013,coalinventory levelsdecreasedby$62millionbecauseofdelivery disruptionsduetoflooding,whilein2012,coal inventorylevelsincreasedby$32million,primarily becauseadditionaltonswereheldininventorywhen generationlevelswerelowerthanexpecteddueto marketconditions.
Theabsencein2013of$25millioninseverance paymentsmadein2012asaresultofthevoluntary separationoffersextendedtoAmerenMissouri employeesinthefourthquarterof2011.
A$22milliondecreaseininterestpayments,primarily dueto2012refinancingactivityandtimingofpayments onAmerenMissouriandAmerenIllinoisseniorsecured
notes.Thereceiptof$16millionin2013forstormrestoration assistanceprovidedtononaffiliatedutilitiesin2012at AmerenIllinois.
Aone-time$7.5millioncontribution,in2012,by AmerenIllinoistotheIllinoisScienceandEnergy InnovationTrust,asrequiredbytheIEIMA,whichwas notrepeatedin2013.ThefollowingitemspartiallyoffsettheincreaseinAmeren'scashfromoperatingactivitiesassociatedwith continuingoperationsduring2013,comparedwith2012:
A$106millionincreaseinincometaxpaymentsforcontinuingoperations.Asdiscussedbelow,incometax paymentsatAmerenMissouriincreased$89million, whileincometaxrefundsatAmerenIllinoisincreased
$1million.ConsideringbothAmeren'scontinuingand discontinuedoperations,Amerenmadeimmaterial federalincometaxpaymentsin2013.
A$91milliondecreaseinthecollectionofcustomer receivablebalancescomparedwiththeprioryear, drivenbythetimingandamountofrevenuesineach
period.A$27millionincreaseinpaymentsforthe2013 schedulednuclearrefuelingandmaintenanceoutageat theCallawayenergycenter.Therewasnorefuelingand maintenanceoutagein2012.
Theabsencein2013ofcourtregistryreceiptsand payments.In2012,AmerenMissourireceived
$19millionfromtheCircuitCourtofStoddardCounty's registryandtheCircuitCourtofColeCounty'sregistry, netofpaymentsintothoseregistries,asaresultofa MissouriCourtofAppealsrulingupholdingthe MoPSC'sJanuary2009electricrateorder.
48 A$13millionincreaseinpropertytaxpayments,primarilyatAmerenMissouri,causedbythetimingof
payments.A$12millionincreaseinmajorstormrestorationcosts.
An$11millionincreaseinlaborcostsprimarilyrelated toincreasedstaffinglevelsassociatedwithIEIMAat AmerenIllinois.
An$8millionincreaseinpensionandpostretirement benefitplancontributions,primarilycausedbyan increaseinfundingrequirementsin2013compared with2012,partiallyoffsetbyanadditional postretirementcontributionin2012atAmerenIllinois.
InadditiontotheAmerenMissouriandAmerenIllinois amountsdiscussedbelow,Ameren'snonregistrant subsidiariesincreasedtheircontributionstothe pensionandpostretirementbenefitplansby
$19million.Ameren'scashfromoperatingactivitiesassociatedwithdiscontinuedoperationsdecreasedin2013,compared with2012,primarilybecauseofa$277milliondecreasein electricmargins,excludingimpactsofnoncashunrealized MTMactivity.Thedecreasewaspartiallyoffsetbya
$99millionincreaseinincometaxrefundsin2013duetoa reductioninpretaxbookincomepartiallyoffsetbya reductioninaccelerateddepreciationdeductions.Ameren's discontinuedoperationsentitiesreceivedtheseincometax refundsthroughthetaxallocationagreementwithAmeren's continuingoperationsentities.AmerenMissouriAmerenMissouri'scashfromoperatingactivitiesincreased$139millionin2013,comparedwith2012.Thefollowingitemscontributedtotheincrease:
A$115millionincreaseinthecashassociatedwithunder-recoveredFACcosts.Recoveriesexceeded deferralsin2013by$41million,whiledeferralsand refundsexceededrecoveriesin2012by$74million.
A$94millionincreaseduetochangesincoalinventory levels.In2013,coalinventorylevelsdecreasedby
$62millionbecauseofdeliverydisruptionsdueto flooding,whilein2012,coalinventorylevelsincreased by$32million,primarilybecauseadditionaltonswere heldininventorywhengenerationlevelswerelower thanexpectedduetomarketconditions.
Electricandnaturalgasmargins,asdiscussedin ResultsofOperationsexcludingcertainnoncashitems, thatincreasedby$91million.
Theabsencein2013of$62millioninpremiumspaid todebtholdersin2012inconnectionwiththe repurchaseofthetenderedprincipalofmultipleseries ofseniorsecurednotes.
Theabsencein2013of$25millioninseverance paymentsmadein2012asaresultofthevoluntary separationoffersextendedtoemployeesinthefourth quarterof2011.
An$8milliondecreaseininterestpayments,primarily dueto2012refinancingactivityandtimingofpayments onseniorsecurednotes.ThefollowingitemspartiallyoffsettheincreaseinAmerenMissouri'scashfromoperatingactivitiesduring 2013,comparedwith2012:
Incometaxpaymentsthattotaled$86millionin2013,resultingprimarilyfromareductioninaccelerated depreciationdeductions,whileincometaxrefundswere
$3millionin2012.Paymentsandrefundsweremade betweenAmerenMissouriandAmeren(parent) pursuanttothetaxallocationagreement.
A$60milliondecreaseinthecollectionofcustomer receivablebalancescomparedwiththeprioryear, drivenbythetimingandamountofrevenuesineach
period.A$27millionincreaseinpaymentsforscheduled nuclearrefuelingandmaintenanceoutagesatthe Callawayenergycenter.Therewasnorefuelingand maintenanceoutagein2012.
A$20millionincreaseinpropertytaxpaymentscaused bythetimingofpayments.
Theabsencein2013ofcourtregistryreceiptsand payments.In2012,AmerenMissourireceived
$19millionfromtheCircuitCourtofStoddardCounty's registryandtheCircuitCourtofColeCounty'sregistry, netofpaymentsintothoseregistries,asaresultofa MissouriCourtofAppealsrulingupholdingthe MoPSC'sJanuary2009electricrateorder.
A$9millionincreaseinpensionandpostretirement benefitplancontributionsprimarilycausedbyan increaseinfundingrequirementsin2013compared with2012.An$8millionincreaseinmajorstormrestorationcosts.AmerenIllinoisAmerenIllinois'cashfromoperatingactivitiesincreased$132millionin2013,comparedwith2012.The followingitemscontributedtotheincrease:
Theabsencein2013of$76millioninpremiumspaidtodebtholdersin2012inconnectionwiththe repurchaseofthetenderedprincipalofmultipleseries ofseniorsecurednotes.
A$20milliondecreaseinpensionandpostretirement benefitplancontributions,primarilycausedbyan additionalpostretirementcontributionin2012.
Thereceiptof$16millionin2013forstormrestoration assistanceprovidedtononaffiliatedutilitiesin2012.
A$13milliondecreaseininterestpayments,primarily dueto2012refinancingactivityandtimingofpayments onseniorsecurednotes.
Electricandnaturalgasmargins,asdiscussedin ResultsofOperationsexcludingcertainnoncashitems, thatincreasedby$11million.
Aone-time$7.5millioncontribution,in2012,tothe IllinoisScienceandEnergyInnovationTrustasrequired bytheIEIMA.
A$7milliondecreaseinpropertytaxpaymentsdueto twoelectricitydistributiontaxcreditrefundsreceivedin
2013.49 ThefollowingitemspartiallyoffsettheincreaseinAmerenIllinois'cashfromoperatingactivitiesduring2013,comparedwith2012:
A$29milliondecreaseinthecollectionofcustomerreceivablebalancescomparedwiththeprioryear, drivenbythetimingandamountofrevenuesineach
period.An$11millionincreaseinlaborcostsprimarilyrelated toincreasedstaffinglevelsassociatedwithIEIMA.PensionPlansAmeren'spensionplansarefundedincompliancewithincometaxregulationsandfederalfundingorregulatory requirements.Asaresult,Amerenexpectstofundits pensionplansatalevelequaltothegreaterofthepension expenseorthelegallyrequiredminimumcontribution.
ConsideringAmeren'sassumptionsatDecember31,2014, itsinvestmentperformancein2014,anditspension fundingpolicy,Amerenexpectstomakeannual contributionsof$25millionto$115millionineachofthe nextfiveyears,withaggregateestimatedcontributionsof
$290million.WeexpectAmerenMissouri'sandAmeren Illinois'portionsofthefuturefundingrequirementstobe 41%and40%,respectively.Theseamountsareestimates.
Theestimatesmaychangewithactualinvestment performance,changesininterestrates,changesinour assumptions,changesingovernmentregulations,orany voluntarycontributions.In2014,Amerencontributed
$99milliontoitspensionplans.SeeNote11-Retirement BenefitsunderPartII,Item8,ofthisreportforadditional
information.CashFlowsfromInvestingActivities2014versus2013Ameren'scashusedininvestingactivitiesassociatedwithcontinuingoperationsincreasedby$416millionduring2014,comparedwith2013.Capitalexpenditures increased$406million,primarilybecauseofincreased transmissionexpenditures,whichincludeda$150million increaseforATXI'sIllinoisRiversproject.Inaddition, capitalexpendituresforenergycenter,reliabilityandIEIMA projectsincreasedcashusedininvestingactivitiesandare discussedbelow.During2014,cashprovidedbyinvestingactivitiesassociatedwithAmeren'sdiscontinuedoperations consistedof$152millionreceivedfromRocklandCapital forthesaleoftheElgin,GibsonCity,andGrandTowergas-firedenergycentersinJanuary2014,offsetbypaymentof
$13milliontoIPHforthefinalworkingcapitaladjustment andaportionofcertaincontingentliabilitiesassociatedwith theNewAERdivestiture.Incomparison,cashusedin investingactivitiesassociatedwithdiscontinuedoperations during2013was$283million,primarilybecauseofthe requirementtoleave$235millionwithNewAERupon divestiture,pursuanttothetransactionagreementwithIPH.AmerenMissouri'scashusedininvestingactivitiesincreasedby$150millionduring2014,comparedwith2013.Capitalexpendituresincreased$99million,primarily forreliabilityandenergycenterprojects,includingthe nuclearreactorvesselheadreplacementprojectatits Callawayenergycenter,theelectrostaticprecipitator upgradesattheLabadieenergycenter,anewsubstationin St.Louis,andinvestmentintheO'Fallonenergycenter, offsetbyareductioninstormrestorationexpenditures.
Nuclearfuelexpendituresincreasedby$29milliondueto timingofpurchasesin2014comparedto2013.Inaddition, cashusedininvestingactivitiesincreasedin2014because oftheabsencein2014of$24millioninnetreceiptsrelated tomoneypooladvancesreceivedin2013.AmerenIllinois'cashusedininvestingactivitiesincreasedby$133millionduring2014,comparedwith 2013,becauseofincreasedcapitalexpenditures,primarily fortransmission,reliability,andIEIMAprojects.2013versus2012Ameren'scashusedininvestingactivitiesassociatedwithcontinuingoperationsincreasedby$287millionduring2013,comparedwith2012.Capitalexpenditures increased$316million,primarilybecauseofincreased expendituresfortransmissioninIllinois,reliabilityprojects, andstormrestorationcosts.Theincreaseincashflows usedininvestingactivitieswaspartiallyoffsetbya
$46milliondecreaseinnuclearfuelexpendituresdueto timingofpurchases.CashusedininvestingactivitiesassociatedwithAmeren'sdiscontinuedoperationsincreased$126million during2013,comparedwith2012,primarilybecauseofthe requirementtoleave$235millionwithNewAERupon divestiture,pursuanttothetransactionagreementwithIPH.
Thisuseofcashwaspartiallyoffsetbyreducedcapital expendituresin2013asaresultofthedecelerationofthe scrubberconstructionprojectatthepreviously-owned Newtonenergycenter.AmerenMissouri'scashusedininvestingactivitiesdecreased$16millionduring2013,comparedwith2012, primarilyduetochangesinmoneypooladvancesanda
$46milliondecreaseinnuclearfuelexpendituresdueto timingofpurchases.Thedecreaseincashusedininvesting activitieswaspartiallyoffsetbyincreasedcapital expendituresandtheabsencein2013ofa2012receiptof
$18millionforfederaltaxgrantsrelatedtorenewable energyconstructionprojects.Capitalexpenditures increased$53million,primarilybecauseofincreased expendituresforreliabilityprojectsandanincreaseinstorm restorationcosts.AmerenIllinois'cashusedininvestingactivitiesincreased$258millionduring2013,comparedwith2012.
Capitalexpendituresincreased$259million,primarily becauseofincreasedexpendituresof$164millionfor transmissionandreliabilityprojects,$18millionforstorm restorationcosts,and$12millionforIEIMAprojects.
50 CapitalExpendituresThefollowingtablepresentsthecapitalexpendituresbytheAmerenCompaniesfortheyearsendedDecember31,2014,2013,and2012:201420132012 Ameren (a)................$1,785$1,379$1,063AmerenMissouri
..........
747648595AmerenIllinois
............
835701442(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandtheeliminationofintercompanytransfers.Ameren's2014capitalexpendituresconsistedprimarilyofthefollowingexpendituresbyitssubsidiaries.
AmerenMissourispent$101millionforelectrostatic precipitatorupgradesatitsLabadieenergycenter,
$33millionforthereplacementofthenuclearreactorvessel headatitsCallawayenergycenter,and$16millionforthe constructionoftheO'Fallonenergycenter.AmerenIllinois spent$284millionontransmissioninitiativesand
$89milliononIEIMAprojects.ATXIspent$201millionon theIllinoisRiversproject.Othercapitalexpenditureswere madeprincipallytomaintain,upgrade,andimprovethe reliabilityofthetransmissionanddistributionsystemsof AmerenMissouriandAmerenIllinoisaswellastofund variousAmerenMissourienergycenterupgrades.Ameren's2013capitalexpendituresconsistedprimarilyofthefollowingexpendituresbyitssubsidiaries.
AmerenMissourispent$53millionforelectrostatic precipitatorupgradesattheLabadieenergycenter,
$30milliononstormrestoration,and$29milliononthe replacementofthenuclearreactorvesselheadatits Callawayenergycenterwhichwasinstalledduringthe2014 refuelingandmaintenanceoutage.AmerenIllinoisspent
$269millionontransmissioninitiatives,$33millionon IEIMAprojects,and$23milliononstormrestoration.ATXI spent$51millionontheIllinoisRiversproject.Othercapital expendituresweremadeprincipallytomaintain,upgrade, andimprovethereliabilityofthetransmissionand distributionsystemsofAmerenMissouriandAmeren IllinoisaswellastofundvariousAmerenMissourienergy centerupgrades.Ameren's2012capitalexpendituresconsistedprimarilyofthefollowingexpendituresbyitssubsidiaries.
AmerenMissourispent$30milliononthereplacementof thenuclearreactorvesselheadatitsCallawayenergycenter whichwasinstalledduringthe2014refuelingand maintenanceoutage,and$23milliononaboilerupgrade project.AmerenIllinoisspent$27milliononIEIMA projects.Othercapitalexpendituresweremadeprincipally tomaintain,upgrade,andimprovethereliabilityofthe transmissionanddistributionsystemsofAmerenMissouri andAmerenIllinoisaswellastofundvariousAmeren Missourienergycenterupgrades.ThefollowingtablepresentsAmeren'sestimateofcapitalexpendituresthatwillbeincurredfrom2015through 2019,includingconstructionexpenditures,allowanceforfundsusedduringconstruction,andexpendituresfor compliancewithexistingenvironmentalregulations.
Amerenexpectstoallocatemoreofitsdiscretionarycapital expenditurestoAmerenIllinoisandATXIbasedonthe moreconstructiveregulatoryframeworkswithinwhichthey
operate.20152016-2019TotalAmerenMissouri..$710$2,875-$3,180$3,585-$3,890AmerenIllinois....9052,775-3,0653,680-3,970 ATXI............345945-1,0451,290-1,390 Ameren.........$1,960$6,595-$7,290$8,555-$9,250AmerenMissouri'sestimatedcapitalexpendituresincludetransmission,distribution,andgeneration-relatedinvestments,aswellasexpendituresforcompliancewith environmentalregulations.AmerenIllinois'estimated capitalexpendituresareprimarilyforelectricandnatural gastransmissionanddistribution-relatedinvestments, capitalexpendituresincrementaltohistoricalaverage electricdeliverycapitalexpenditurestomodernizeits distributionsystempursuanttotheIEIMA,andcapital expendituresforqualifiedinvestmentsinnaturalgas infrastructureundertheQIPrider.ATXI'sestimatedcapital expendituresincludeexpendituresforthethreeMISO-approvedmulti-valuetransmissionprojects.Foradditional informationregardingtheIEIMAcapitalexpenditure requirements,theQIPrider,andATXI'stransmission projects,seeBusinessunderPartI,Item1,ofthisreport.AmerenMissouricontinuallyreviewsitsgenerationportfolioandexpectedpowerneeds.Asaresult,Ameren Missouricouldmodifyitsplanforgenerationcapacity,the typeofgenerationassettechnologythatwillbeemployed, andwhethercapacityorpowermaybepurchased,among otherchanges.Additionally,wecontinuallyreviewthe reliabilityofourtransmissionanddistributionsystems, expectedcapacityneeds,andopportunitiesfortransmission investments.Thetimingandamountofinvestmentscould varybecauseofchangesinexpectedcapacity,thecondition oftransmissionanddistributionsystems,andourability andwillingnesstopursuetransmissioninvestments, amongotherfactors.Anychangesinfuturegeneration, transmission,ordistributionneedscouldresultin significantcapitalexpendituresorlosses,whichcouldbe material.Compliancewithenvironmentalregulationscould alsohavesignificantimpactsonthelevelofcapital
expenditures.EnvironmentalCapitalExpendituresAmerenMissouriwillincursignificantcostsinfutureyearstocomplywithfederalandstateregulationsincludingthoserequiringthereductionofSO 2,NO x,andmercuryemissionsfromitscoal-firedenergycenters.SeeNote15-CommitmentsandContingenciesunderPartII,Item8,of thisreportforadiscussionofexistingenvironmentallaws andregulationsthataffect,ormayaffect,ourfacilitiesand capitalexpenditurestocomplywithsuchlawsand
regulations.
51 CashFlowsfromFinancingActivities2014versus2013Ameren'sfinancingactivitiesassociatedwithcontinuingoperationsprovidednetcashof$141millionin2014,comparedwith2013whenAmerenusedcashof
$149million.During2014,Amerenanditsregistrant subsidiariesissuedlower-costlong-termandshort-term debttofundthematuritiesandredemptionsofhigher-cost long-termdebt,includingthematurityofAmeren(parent)'s
$425millionseniorunsecurednotes.In2014,Amerenalso usedcashfromfinancingactivitiestofundinvesting activitiesthatwerenotfundedbycashgeneratedfrom operatingactivities.Incomparison,during2013,Ameren anditsregistrantsubsidiariesissuedlower-costlong-term andshort-termdebttofundthematuritiesandredemptions ofhigher-costlong-debtandtofundthe$235millionthat AmerenwasrequiredtoleavewithNewAERuponits divestitureinDecember2013,pursuanttothetransaction agreementwithIPH.In2013,Amerenusedcashonhandto fundinvestingandfinancingactivitiesthatwerenotfunded bycashgeneratedfromoperatingactivities.Nocashfromfinancingactivitieswasusedfordiscontinuedoperationsduring2014.AmerenMissouri'sfinancingactivitiesusednetcashof$113millionin2014,comparedwith$603millionin2013.
During2014,AmerenMissouriissued$350millionof seniorsecurednotesandanet$97millionofshort-term debt,repaidatmaturity$104millionoflong-termdebt, repaid$105milliontothemoneypool,andpaidcommon stockdividendsof$340million.AmerenMissouriused cashgeneratedfromitsoperatingactivitiestofund investingandfinancingactivitiesin2014.Incomparison, during2013,AmerenMissouriredeemed$244millionof long-termdebt,paidcommonstockdividendsof
$460million,andreceived$105millionfromthemoney pool.In2013,AmerenMissouriusedcashonhandtofund investingandfinancingactivitiesthatwerenotfundedby cashgeneratedfromoperatingactivities.AmerenIllinois'financingactivitiesprovidednetcashof$383millionin2014,comparedwith$45millionin 2013.During2014,AmerenIllinoisissued$550millionin seniorsecurednotesandanet$32millionofshort-term debt,redeemedexistinglong-termdebtof$163million,and repaid$41milliontothemoneypool.Incomparison, during2013,AmerenIllinoisissued$280millioninsenior secureddebt,repaidatmaturity$150millionoflong-term debt,andpaidcommonstockdividendsof$110million.
Duringbothyears,AmerenIllinoisusedcashfrom financingactivitiestofundinvestingactivitiesthatwerenot fundedbycashgeneratedfromoperatingactivities.2013versus2012Amerenusednetcashof$149millionin2013,comparedwith$426millionin2012relatedtofinancingactivitiesassociatedwithcontinuingoperations.During2013,Amerenanditsregistrantsubsidiariesissuedlower-costlong-termandshort-termdebttofundthematurities andredemptionsofhigher-costlong-termdebtandtofund the$235millionthatAmerenwasrequiredtoleavewith NewAERuponitsdivestitureinDecember2013,pursuant tothetransactionagreementwithIPH.During2012, Amerenanditsregistrantsubsidiariesissuedlower-cost long-termdebttofundthematuritiesandredemptionsof higher-costlong-termdebtandrepayshort-termdebt.
Duringbothyears,Amerenusedcashonhandtofund investingandfinancingactivitiesthatwerenotfundedby cashgeneratedfromoperatingactivities.Nocashfromfinancingactivitieswasusedfordiscontinuedoperationsduring2013.AmerenMissouri'sfinancingactivitiesusednetcashof$603millionin2013,comparedwith$354millionin2012.
During2013,AmerenMissouriredeemed$244millionof long-termdebt,paidcommonstockdividendsof
$460million,andreceived$105millionfromthemoney pool.Incomparison,during2012,AmerenMissouriissued
$485millionofseniorsecurednotes,redeemedorrepaidof
$422millionoflong-termdebt,andpaidcommonstock dividendsof$400million.Duringbothyears,Ameren Missouriusedcashonhandtofundinvestingandfinancing activitiesthatwerenotfundedbycashgeneratedfrom operatingactivities.AmerenIllinois'financingactivitiesprovidednetcashof$45millionin2013,comparedwith2012whenAmeren Illinois'financingactivitiesusednetcashof$103million.
During2013,AmerenIllinoisissued$280millioninsenior secureddebt,repaidatmaturity$150millionoflong-term debt,andpaidcommonstockdividendsof$110million.
AmerenIllinoisusedcashfromfinancingactivitiestofund investingactivitiesthatwerenotfundedbycashprovided byoperatingactivities.Incomparison,during2012,Ameren Illinoisissued$400millionofseniorsecurednotes, redeemedorrepaid$333millionoflong-termdebtandpaid commonstockdividendsof$189million.In2012,Ameren Illinoisusedcashonhandtofundinvestingandfinancing activitiesthatwerenotfundedbycashgeneratedfrom operatingactivities.CreditFacilityBorrowingsandLiquidityTheliquidityneedsofAmeren,AmerenMissouri,andAmerenIllinoisaretypicallysupportedthroughtheuseofavailablecash,short-termintercompanyborrowings, drawingsundercommittedbankcreditagreements,or commercialpaperissuances.SeeNote4-Short-termDebt andLiquidityunderPartII,Item8,ofthisreportfor additionalinformationoncreditagreements,short-term borrowingactivity,commercialpaperissuances,relevant interestrates,andborrowingsunderAmeren'smoneypool
arrangements.
52 Thefollowingtablepresentsthecommitted2012CreditAgreementsofAmeren,AmerenMissouri,andAmerenIllinoisandthecreditcapacityavailableundersuchagreements,consideringreductionsforcommercialpaperissuancesandlettersofcredit,asofDecember31,2014:ExpirationBorrowingCapacityCreditAvailableAmerenandAmerenMissouri:2012MissouriCreditAgreement
........................................December2019$1,000$1,000Less:Commercialpaperoutstanding..................................(a)438 Subtotal 562AmerenandAmerenIllinois:2012IllinoisCreditAgreement
.........................................December20191,1001,100Less:Commercialpaperoutstanding..................................(a)276Less:Lettersofcredit (b).............................................(a)13 Subtotal.............................................................811Amerentotal
...........................................................
$2,100$1,373(a)Notapplicable.(b)AsofDecember31,2014,$9millionofthelettersofcreditrelatetoAmeren'songoingcreditsupportobligationstoNewAER.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8,ofthisreportforadditionalinformation.InDecember2014,Ameren(parent),AmerenMissouriandAmerenIllinoisamended,restated,andextendedthematuritydatesoftheir2012CreditAgreementsfrom November14,2017,toDecember11,2019.Borrowingsby Amerenundereitherofthe2012CreditAgreementsaredue andpayablenolaterthanthematuritydate,while borrowingsbyAmerenMissouriandAmerenIllinoisare dueandpayablenolaterthantheearlierofthematuritydate or364daysafterthedateofsuchborrowing(subjecttothe rightofeachborrowertore-borrowinaccordancewiththe termsoftheapplicable2012CreditAgreement).The2012 CreditAgreementsareusedtoborrowcash,toissueletters ofcredit,andtosupportissuancesunderAmeren's, AmerenMissouri's,andAmerenIllinois'commercialpaper programs.Bothofthe2012CreditAgreementsareavailable toAmerentosupportissuancesunderAmeren's commercialpaperprogram,subjecttoborrowingsublimits.
The2012MissouriCreditAgreementisavailabletosupport issuancesunderAmerenMissouri'scommercialpaper program.The2012IllinoisCreditAgreementisavailableto supportissuancesunderAmerenIllinois'commercialpaper program.During2013and2014,issuancesunderthe Ameren,AmerenMissouri,andAmerenIllinoiscommercial paperprogramswereavailableatlowerinterestratesthan theinterestratesavailableunderthe2012Credit Agreements.Assuch,commercialpaperissuanceswerea preferredsourceofthird-partyshort-termdebtrelativeto creditfacilityborrowings.Themaximumaggregateamountavailabletoeachborrowerundereachfacilityisshowninthefollowingtable (theamountbeingtheborrower's"BorrowingSublimit"):2012MissouriCreditAgreement2012IllinoisCreditAgreement Ameren..............$700$500AmerenMissouri.......800(a)AmerenIllinois.........(a)800(a)Notapplicable.Subjecttoapplicableregulatoryshort-termborrowingauthorizations,thesecreditarrangementsarealsoavailable toAmeren'sothersubsidiariesthroughdirectshort-term borrowingsfromAmeren,including,butnotlimitedto, AmerenServices,throughamoneypoolagreement.
Amerenhasmoneypoolagreementswithandamongits subsidiariestocoordinateandtoprovideforcertainshort-termcashandworkingcapitalrequirements.SeeNote4-Short-termDebtandLiquidityunderPartII,Item8,ofthis reportforadetailedexplanationofthemoneypool
arrangements.Theissuanceofshort-termdebtsecuritiesbyAmeren'sutilitysubsidiariesissubjecttoapprovalbythe FERCundertheFederalPowerAct.InFebruary2014,the FERCissuedanorderauthorizingAmerenMissouritoissue upto$1billionofshort-termdebtsecuritiesthrough March16,2016.InSeptember2014,theFERCissuedan orderauthorizingAmerenIllinoistoissueupto$1billionof short-termdebtsecuritiesthroughSeptember15,2016.TheAmerenCompaniescontinuallyevaluatetheadequacyandappropriatenessoftheirliquidity arrangementsgivenchangingbusinessconditions.When businessconditionswarrant,changesmaybemadeto existingcreditagreementsortoothershort-termborrowing
arrangements.
53 Long-termDebtandEquityThefollowingtablepresentstheissuances,redemptions,repurchases,andmaturitiesoflong-termdebt(netofanyissuancediscounts)fortheyearsendedDecember31,2014,2013,and2012fortheAmerenCompanies.TheAmerenCompaniesdidnotissueanycommonstockorredeemorrepurchaseanypreferredstockduringtheyearsended2014,2013, and2012.Foradditionalinformationrelatedtothetermsandusesoftheseissuancesandeffectiveregistrationstatements, seeNote5-Long-termDebtandEquityFinancingsunderPartII,Item8,ofthisreport.MonthIssued,Redeemed,Repurchased,orMatured201420132012 IssuancesAmerenMissouri:3.90%Seniorsecurednotesdue2042
.............................
September$-$-$4823.50%Seniorsecurednotesdue2024
.............................
April 350--AmerenIllinois:2.70%Seniorsecurednotesdue2022
.............................
August--4004.80%Seniorsecurednotesdue2043
.............................
December-278-4.30%Seniorsecurednotesdue2044
.............................
June 248--3.25%Seniorsecurednotesdue2025
.............................
December 300--TotalAmerenlong-termdebtissuances
..............................$898$278$882Redemptions,RepurchasesandMaturities Ameren(Parent):8.875%Seniorunsecurednotesdue2014..........................May$425$-$-AmerenMissouri:CityofBowlingGreencapitallease(PenoCreekCT)
..................
Various 5 55.25%Seniorsecurednotesdue2012
.............................
September--1736.00%Seniorsecurednotesdue2018
.............................
September--716.70%Seniorsecurednotesdue2019
.............................
September--1215.10%Seniorsecurednotesdue2018
.............................
September--15.10%Seniorsecurednotesdue2019
.............................
September--5619935.45%Seriespollutioncontrolrevenuebondsdue2028
..........
October-44-4.65%Seniorsecurednotesdue2013
.............................
October-200-5.50%Seniorsecurednotesdue2014
.............................May 104--AmerenIllinois:9.75%Seniorsecurednotesdue2018
.............................
August--876.25%Seniorsecurednotesdue2018
.............................
August--1945.50%2000SeriesApollutioncontrolrevenuebondsdue2014
.........August--51 6.20%Series1992Bdue2012
...................................
November--18.875%Seniorsecurednotesdue2013
............................
December-150-5.90%Series1993due2023 (a)...................................
January 32--5.70%1994ASeriesdue2024 (a).................................
January 36--5.95%1993SeriesC-1due2026
.................................
January 35--5.70%1993SeriesC-2due2026
.................................
January 8--5.40%1998ASeriesdue2028
...................................
January 19--5.40%1998BSeriesdue2028
...................................
January 33--TotalAmerenlong-termdebtredemptions,repurchasesandmaturities
......$697$399$760(a)Lessthan$1millionprincipalamountofthebondsremainoutstandingafterredemption.TheAmerenCompaniesmaysellsecuritiesregisteredundertheireffectiveregistrationstatementsifmarketconditionsandcapitalrequirementswarrantsuchsales.
Anyofferandsalewillbemadeonlybymeansofa prospectusthatmeetstherequirementsoftheSecurities Actof1933andtherulesandregulationsthereunder.IndebtednessProvisionsandOtherCovenantsAtDecember31,2014,theAmerenCompanieswereincompliancewiththeprovisionsandcovenantscontainedwithintheircreditagreements,indentures,andarticlesof incorporation.SeeNote4-Short-termDebtandLiquidity andNote5-Long-termDebtandEquityFinancingsunderPartII,Item8,ofthisreportforadiscussionofcovenants andprovisions(andapplicablecross-defaultprovisions) containedinourbankcreditagreementsandincertainof theAmerenCompanies'indenturesandarticlesof
incorporation.Weconsideraccesstoshort-termandlong-termcapitalmarketstobeasignificantsourceoffundingfor capitalrequirementsnotsatisfiedbycashgeneratedfrom ouroperatingactivities.Inabilitytoraisecapitalon reasonableterms,particularlyduringtimesofuncertaintyin thecapitalmarkets,couldnegativelyaffectourabilityto maintainandexpandourbusinesses.Afterassessingits currentoperatingperformance,liquidity,andcreditratings (seeCreditRatingsbelow),Ameren,AmerenMissouri,and 54 AmerenIllinoiseachbelievesthatitwillcontinuetohaveaccesstothecapitalmarkets.However,eventsbeyond Ameren's,AmerenMissouri's,andAmerenIllinois'control maycreateuncertaintyinthecapitalmarketsormake accesstothecapitalmarketsuncertainorlimited.Such eventscouldincreaseourcostofcapitalandadversely affectourabilitytoaccessthecapitalmarkets.DividendsandReturnofCapitalAmerenpaidtoitsshareholderscommonstockdividendstotaling$390million,or$1.61pershare,in2014,$388million,or$1.60pershare,in2013,and$382million, or$1.60pershare,in2012.TheamountandtimingofdividendspayableonAmeren'scommonstockarewithinthesolediscretionof Ameren'sboardofdirectors.Theboardofdirectorshasnot setspecifictargetsorpayoutparameterswhendeclaring commonstockdividends,butitconsidersvariousissues, includingAmeren'soverallpayoutratio,payoutratiosofour peers,projectedcashflowandpotentialfuturecashflow requirements,historicalearningsandcashflow,projected earnings,impactsofregulatoryordersorlegislation,and otherkeybusinessconsiderations.Amerenexpectsits dividendpayoutratiotobebetween55%and70%of earningsoverthenextfewyears.OnFebruary13,2015,the boardofdirectorsofAmerendeclaredaquarterlydividend onAmeren'scommonstockof41centspershare,payable onMarch31,2015,toshareholdersofrecordonMarch11, 2015.Certainofourfinancialagreementsandcorporateorganizationaldocumentscontaincovenantsandconditions that,amongotherthings,restricttheAmerenCompanies' paymentofdividendsincertaincircumstances.AmerenIllinois'articlesofincorporationrequireitsdividendpaymentsoncommonstocktobebasedonratios ofcommonstocktototalcapitalizationandotherprovisions relatedtocertainoperatingexpensesandaccumulationsof earnedsurplus.AmerenMissouriandAmerenIllinois,aswellascertainothernonregistrantAmerensubsidiaries,aresubject toSection305(a)oftheFederalPowerAct,whichmakesit unlawfulforanyofficerordirectorofapublicutility,as definedintheFederalPowerAct,toparticipateinthe makingorpayingofanydividendfromanyfunds"properly includedincapitalaccount."TheFERChasconsistently interpretedtheprovisiontoallowdividendstobepaidas longas(1)thesourceofthedividendsisclearlydisclosed, (2)thedividendsarenotexcessive,and(3)thereisnoself-dealingonthepartofcorporateofficials.Ataminimum, Amerenbelievesthatdividendscanbepaidbyits subsidiariesthatarepublicutilitiesfromnetincomeand fromretainedearnings.Inaddition,underIllinoislaw, AmerenIllinoismaynotpayanydividendonitsstock unless,amongotherthings,itsearningsandearnedsurplus aresufficienttodeclareandpayadividendafterprovisionis madeforreasonableandproperreserves,orunlessAmeren IllinoishasspecificauthorizationfromtheICC.AmerenhascommittedtotheFERCtomaintainaminimumof30%equityinitscapitalstructureatAmeren
Illinois.AtDecember31,2014,Ameren,AmerenMissouri,andAmerenIllinoiswerenotrestrictedfrompayingdividends.AtDecember31,2014,theamountofrestrictednetassetsofwhollyownedsubsidiariesofAmerenthatmay notbedistributedtoAmerenintheformofaloanor dividendwas$2.3billion.ThefollowingtablepresentscommonstockdividendspaidbyAmerenCorporationtoitscommonshareholdersandbyAmerenMissouriandAmerenIllinoistotheirparent,Ameren.201420132012AmerenMissouri
.............................................................................$340 (a)$460$400AmerenIllinois
..............................................................................
-110189 Ameren....................................................................................
390388382(a)Additionally,duringthefourthquarterof2014,AmerenMissourireturnedcapitalof$215milliontoAmeren(parent).CertainoftheAmerenCompanieshaveissuedpreferredstock,whichprovidesforcumulativepreferred stockdividends.Eachcompany'sboardofdirectors considersthedeclarationofthepreferredstockdividendsto shareholdersofrecordonacertaindate,statingthedateonwhichthedividendispayableandtheamounttobepaid.
SeeNote5-Long-termDebtandEquityFinancingsunder PartII,Item8,ofthisreportforfurtherdetailconcerning thepreferredstockissuances.
55 ContractualObligationsThefollowingtablepresentsourcontractualobligationsasofDecember31,2014.SeeNote11-RetirementBenefitsunderPartII,Item8,ofthisreportforinformationregardingexpectedminimumfundinglevelsforourpensionplans.Theseexpectedpensionfundingamountsarenotincludedinthetablebelow.Inaddition,routineshort-termpurchaseorder commitmentsarenotincluded.Lessthan1Year1-3Years3-5YearsAfter5YearsTotal Ameren: (a)Long-termdebtandcapitalleaseobligations (b).........................$120$1,076$1,421$3,634$6,251Interestpayments (c).............................................3396134292,3873,768Operatingleases (d)..............................................1324233898Otherobligations (e)..............................................1,3171,9786601,2315,186Totalcashcontractualobligations...................................$1,789$3,691$2,533$7,290$15,303AmerenMissouri:Long-termdebtandcapitalleaseobligations (b).........................$120$697$964$2,224$4,005Interestpayments (c).............................................2203902891,5802,479Operatingleases (d)..............................................1122203790Otherobligations (e)..............................................8981,6134765253,512Totalcashcontractualobligations...................................$1,249$2,722$1,749$4,366$10,086AmerenIllinois:
Long-termdebt (b)...............................................$-$379$457$1,410$2,246Interestpayments (c).............................................118224139807 1,288Operatingleases (d)..............................................12216Otherobligations (e)..............................................381347184706 1,618Totalcashcontractualobligations...................................$500$952$782$2,924$5,158(a)IncludesamountsforregistrantandnonregistrantAmerensubsidiariesandintercompanyeliminations.
(b)Excludesunamortizeddiscountandpremiumof$11million,$6million,and$5millionatAmeren,AmerenMissouri,andAmerenIllinois, respectively.(c)Theweighted-averagevariable-ratedebthasbeencalculatedusingtheinterestrateasofDecember31,2014.
(d)Amountsforcertainland-relatedleaseshaveindefinitepaymentperiods.Theannualobligationof$2million,$1million,and$1millionforAmeren,AmerenMissouri,andAmerenIllinois,respectively,fortheseitemsisincludedintheLessthan1Year,1-3Years,and3-5Years
columns.(e)SeeOtherObligationsinNote15-CommitmentsandContingenciesunderPartII,Item8ofthisreport,fordiscussionofitemsincluded herein.AsofDecember31,2014,theamountsofunrecognizedtaxbenefits(detriments)foruncertaintaxpositionswere$54million,$-million,and$(1)millionfor Ameren,AmerenMissouri,andAmerenIllinois, respectively.Itisreasonablypossibletoexpectthatthe settlementofanunrecognizedtaxbenefitwillresultinan underpaymentoroverpaymentoftaxandrelatedinterest.
However,thereisahighdegreeofuncertaintywithrespect tothetimingofcashpaymentsorreceiptsassociatedwith unrecognizedtaxbenefits.Theamountandtimingofcertain paymentsorreceiptsisnotreliablyestimableor determinableatthistime.SeeNote13-IncomeTaxes underPartII,Item8,ofthisreportforinformation regardingtheAmerenCompanies'unrecognizedtax benefitsandrelatedliabilitiesforinterestexpense.Off-Balance-SheetArrangementsAtDecember31,2014,noneoftheAmerenCompanieshadoff-balance-sheetfinancingarrangements,otherthan operatingleasesenteredintointheordinarycourseof business.NoneoftheAmerenCompaniesexpecttoengage inanysignificantoff-balance-sheetfinancingarrangements inthenearfuture.SeeNote16-DivestitureTransactions andDiscontinuedOperationsunderPartII,Item8,ofthis reportforAmeren(parent)guaranteesandlettersofcredit issuedtosupportNewAERbasedonthetransaction agreementwithIPH.CreditRatingsOurcreditratingsaffectourliquidity,ouraccesstothecapitalmarketsandcreditmarkets,ourcostofborrowingunderourcreditfacilities,ourcommercialpaperprograms, andourcollateralpostingrequirementsundercommodity
contracts.
56 ThefollowingtablepresentstheprincipalcreditratingsoftheAmerenCompaniesbyMoody's,S&P,andFitcheffectiveonthedateofthisreport:Moody'sS&PFitch Ameren:Issuer/corporatecreditrating
........Baa2BBB+BBB+Seniorunsecureddebt
.............Baa2BBBBBB+Commercialpaper.................P-2A-2F2AmerenMissouri:
Issuer/corporatecreditrating
........Baa1BBB+BBB+Secureddebt.....................A2AASeniorunsecureddebt
.............Baa1BBB+A-Commercialpaper.................P-2A-2F-2AmerenIllinois:
Issuer/corporatecreditrating
........Baa1BBB+BBBSecureddebt.....................A2AA-Seniorunsecureddebt
.............Baa1BBB+BBB+Commercialpaper.................P-2A-2F-2Thecostofborrowingunderourcreditfacilitiescanalsofluctuatedependinguponthecreditratingsoftheborrower.Acreditratingisnotarecommendationtobuy, sell,orholdsecurities.Itshouldbeevaluatedindependently ofanyotherrating.Ratingsaresubjecttorevisionor withdrawalatanytimebytheratingorganization.CollateralPostingsAnyadversechangeinourcreditratingsmayreduceaccesstocapitalandtriggeradditionalcollateralpostingsandprepayments.Suchchangesmayalsoincreasethecost ofborrowing,resultinginapotentialnegativeimpacton earnings.Cashcollateralpostingsandprepaymentsmade withexternalparties,includingpostingsrelatedto exchange-tradedcontractsatDecember31,2014,were
$7million,$7million,andlessthan$1millionatAmeren, AmerenMissouri,andAmerenIllinois,respectively.Cash collateralpostedbyexternalcounterpartieswithAmeren andAmerenIllinoiswas$2millionand$2million, respectively,atDecember31,2014.Sub-investment-grade issuerorseniorunsecureddebtratings(lowerthan"BBB-"
or"Baa3")atDecember31,2014,couldhaveresultedin Ameren,AmerenMissouri,orAmerenIllinoisbeing requiredtopostadditionalcollateralorotherassurancesfor certaintradeobligationsamountingto$159million,
$88million,and$71million,respectively.Changesincommoditypricescouldtriggeradditionalcollateralpostingsandprepaymentsatcurrentcredit ratings.Ifmarketpriceswere15%higherthan December31,2014,levelsinthenext12monthsand20%
higherthereafterthroughtheendofthetermofthe commoditycontracts,thenAmeren,AmerenMissouri,or AmerenIllinoiswouldnotberequiredtopostadditional collateralorotherassurancesforcertaintradeobligations.
Ifmarketpriceswere15%lowerthanDecember31,2014 levelsinthenext12monthsand20%lowerthereafter throughtheendofthetermofthecommoditycontracts, thenAmeren,AmerenMissouri,orAmerenIllinoiscouldbe requiredtopostadditionalcollateralorotherassurancesforcertaintradeobligationsupto$25million,$14million,and
$11million,respectively.ThebalanceofMarketingCompany'snotepayabletoAmerenforcashcollateralrequirementswas$12millionat December31,2014.Thisbalancewillvaryuntil December2,2015,ascashcollateralrequirementscaused bychangesincommoditypricescouldtriggeradditional collateralpostingsandprepaymentsforNewAERandthus affectthebalanceofthenote.Ameren'sobligationto providecreditsupportonbehalfofNewAERwillceaseon December2,2015.Ifmarketpriceswere15%higherthan theirDecember31,2014levelsinthenext12monthsand 20%higherthereafterthroughtheendofthetermofthe commoditycontracts,thenAmerencouldberequiredto provideadditionalcreditsupporttoIPH,upto$26million.
Ifmarketpriceswere15%lowerthantheirDecember31, 2014levelsinthenext12monthsand20%lowerthereafter throughtheendofthetermofthecommoditycontracts, thenAmerencouldberequiredtoprovideIPHwith additionalcreditsupportupto$31million.If,on December31,2014,Ameren'screditratingshadbeen belowinvestmentgrade,Amerencouldhavebeenrequired topostadditionalcashcollateralinsupportofNewAERin theamountof$26million.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8,ofthisreport forinformationregardingAmeren(parent)guarantees.
OUTLOOKWeseektoearncompetitivereturnsoninvestmentsinourbusinesses.Weareseekingtoimproveourregulatoryframeworksandcostrecoverymechanismsand simultaneouslypursuingconstructiveregulatoryoutcomes withinexistingframeworks.Weareseekingtoalignour overallspending,bothoperatingandcapital,witheconomic conditionsandcashflowsprovidedbyourregulators.
Consequently,wearefocusedonminimizingthegap betweenallowedandearnedreturnsonequity.Weintendto allocatecapitalresourcestoourbusinessopportunitiesthat offerthemostattractiverisk-adjustedreturnpotential.Belowaresomekeytrends,events,anduncertaintiesthatarereasonablylikelytoaffecttheAmerenCompanies' resultsofoperations,financialcondition,orliquidity,aswell astheirabilitytoachievestrategicandfinancialobjectives, for2015andbeyond.
Operations Ourstrategyforearningcompetitivereturnsonourinvestmentsinvolvesmeetingcustomerenergyneeds inanefficientfashion,workingtoenhanceregulatory frameworks,makingtimelyandwell-supportedrate casefilings,andaligningoverallspendingwiththose ratecaseoutcomes,economicconditions,andreturn
opportunities.
AmerencontinuestopursueitsplanstoinvestinFERC-regulatedelectrictransmission.MISOhasapproved threeelectrictransmissionprojectstobedevelopedby 57 ATXI.Thefirstproject,IllinoisRivers,involvestheconstructionofa345-kilovoltlinefromwesternIndiana acrossthestateofIllinoistoeasternMissouri.Thefirst sectionsoftheIllinoisRiversprojectareexpectedtobe completedin2016.Thelastsectionofthisprojectis expectedtobecompletedby2019.TheSpoonRiver projectinnorthwestIllinoisandtheMarkTwainproject innortheastMissouriaretheothertwoMISO-approved projectstobeconstructedbyATXI.Thesetwoprojects areexpectedtobecompletedin2018.Thetotal investmentinthesethreeprojectsisexpectedtobe morethan$1.4billionduring2015through2019.This totalincludesover$100millionofinvestmentby AmerenIllinoistoconstructconnectionstoitsexisting transmissionsystem.Separatefromthethreeprojects discussedabove,AmerenIllinoisexpectstoinvest approximately$900millioninelectrictransmission assetsduring2015through2019toaddressload growthandreliabilityrequirements.
InNovember2013,acustomergroupfiledacomplaint casewiththeFERCseekingareductionintheallowed basereturnoncommonequityfortheFERC-regulated MISOtransmissionratebaseundertheMISOtariffto 9.15%.Currently,theFERC-allowedbasereturnon commonequityforMISOtransmissionownersis 12.38%.However,the12.38%returnisthesubjectof twoFERCcomplaintproceedingsthatchallengethe allowedreturnoncommonequityforMISO transmissionowners.InJanuary2015,theFERC scheduledtheinitialcaseforhearingproceedings, requiringaninitialdecisiontobeissuednolaterthan November30,2015.A50basispointreductioninthe FERC-allowedreturnoncommonequitywouldreduce Ameren'sandAmerenIllinois'2015earningsbyan estimated$4millionand$2million,respectively,based onprojectedratebase.Thefinaloutcomeofthese proceedingscouldresultinarefundtocustomers retroactivetoNovember2013andhaveamaterial impactontheresultsofoperations,financialposition, andliquidityofAmerenandAmerenIllinois.
InJanuary2015,FERCapprovedourrequestto implementanincentiveadderofupto50basispoints ontheallowedbasereturnoncommonequity prospectivelyfromJanuary6,2015,andtodefer collectionoftheincentiveadderuntiltheissuanceof thefinalorderaddressingtheinitialMISOcomplaint casediscussedabove.
BothAmerenIllinoisandATXIhaveFERCauthorization toemployaforward-lookingratecalculationwithan annualrevenuerequirementreconciliationforeach company'selectrictransmissionbusiness.Usingthe ratesthatbecameeffectiveonJanuary1,2015,andan assumed12.38%returnonequity,AmerenIllinois expectsthatthe2015revenuerequirementforits electrictransmissionbusinesstobe$199million, whichrepresentsa$40millionincreaseoverthe2014 revenuerequirementbecauseofratebasegrowth.
Theseratesalsoreflectacapitalstructurecomposedof approximately54%commonequityandaratebaseof
$890million.UsingtheratesthatbecameeffectiveonJanuary1,2015,andanassumed12.38%returnon equity,ATXIexpectsthatthe2015revenuerequirement foritselectrictransmissionbusinesstobe$80million, whichrepresentsa$46millionincreaseoverthe2014 revenuerequirementbecauseofratebasegrowth, primarilyrelatingtotheIllinoisRiversproject.These ratesalsoreflectacapitalstructurecomposedof approximately56%commonequity,andaratebaseof
$536million.
InFebruary2015,AmerenMissourifiledanamended requestwiththeMoPSCseekingapprovaltoincrease itsannualrevenuesforelectricserviceby approximately$190million.TheMoPSCproceedings relatingtotheproposedelectricservicerateincrease areongoingandadecisionbytheMoPSCisexpected byMay2015,withnewrateseffectivebyJune2015.
AmerenMissouri'scurrentMEEIAplanprovidesfora cumulativeinvestmentincustomerenergyefficiency programsof$147millionduring2013through2015.
InDecember2014,AmerenMissourifiledanew proposedenergyefficiencyplanwiththeMoPSCunder theMEEIA.Thisplanincludesaportfolioofcustomer energyefficiencyprogramsalongwithacostrecovery mechanism.Iftheplanisapproved,beginningin January2016,AmerenMissouriintendstoinvest
$135millionoverthreeyearsfortheproposed customerenergyefficiencyprograms.
InJanuary2015,AmerenIllinoisfiledarequestwith theICCseekingapprovaltoincreaseitsannual revenuesfornaturalgasdeliveryserviceby$53million.
AdecisionbytheICCinthisproceedingisrequiredby December2015andnewratesareexpectedtobe effectiveinJanuary2016.
TheIEIMAprovidesforanannualreconciliationofthe revenuerequirementnecessarytoreflecttheactual costsincurredinagivenyearwiththerevenue requirementthatwasreflectedincustomerratesfor thatyear.Consequently,AmerenIllinois'2015electric deliveryservicerevenueswillbebasedonits2015 actualrecoverablecosts,ratebase,andreturnon commonequityascalculatedundertheIEIMA's performance-basedformularatemakingframework.
The2015revenuerequirementisexpectedtobehigher thanthe2014revenuerequirement,duetoanexpected increaseinrecoverablecostsandratebasegrowth.A 50basispointchangeintheaveragemonthlyyieldsof the30-yearUnitedStatesTreasurybondswouldresult inanestimated$6millionchangeinAmeren'sand AmerenIllinois'2015netincome.
InDecember2014,theICCissuedanorderwith respecttoAmerenIllinois'annualupdatefiling.TheICC approveda$204millionincreaseinAmerenIllinois' electricdeliveryservicerevenuerequirement,beginning inJanuary2015.Theserateshaveaffectedandwill continuetoaffectAmerenIllinois'cashreceiptsduring 2015,butwillnotbethesoledeterminantofitselectric deliveryserviceoperatingrevenues,whichwillinstead belargelydeterminedbytheIEIMA's2015revenue requirementreconciliation.The2015revenue requirementreconciliation,asdiscussedabove,is 58 expectedtoresultinaregulatoryassetthatwillbecollectedfromcustomersin2017.
AmerenMissouri'snextscheduledrefuelingand maintenanceoutageatitsCallawayenergycenterwill beinthespringof2016.Duringthe2014refueling, AmerenMissouriincurredmaintenanceexpensesof
$36million.Duringascheduledoutage,whichoccurs every18months,maintenanceexpensesincrease relativetonon-outageyears.Additionally,dependingon theavailabilityofitsothergenerationsourcesandthe marketpricesforpower,AmerenMissouri'spurchased powercostsmayincreaseandtheamountofexcess poweravailableforsalemaydecreaseversusnon-outageyears.Changesinpurchasedpowercostsand excesspoweravailableforsaleareincludedintheFAC, resultinginlimitedimpactstoearnings.
AsofDecember31,2014,AmerenMissourihad capitalized$69millionofcostsincurredtolicense additionalnucleargenerationatitsCallawayenergy site.In2009,AmerenMissourisuspendeditseffortsto buildanewnuclearunitattheCallawaysite,andthe NRCsuspendedreviewoftheCOLapplication.The suspendedstatusoftheCOLapplicationcurrently extendsthroughtheendof2015.Ifeffortstolicense additionalnucleargenerationareabandoned,theNRC doesnotextendtheCOLapplicationsuspendedstatus, orifmanagementconcludesthatitisprobablethe costsincurredwillbedisallowedinrates,achargeto earningswouldberecognizedintheperiodinwhich thatdeterminationwasmade.
AmerenMissouriisengagedinlitigationwithan insurertorecoveranunpaidliabilityinsuranceclaimfor theDecember2005breachoftheupperreservoirat AmerenMissouri'sTaumSaukpumped-storage hydroelectricenergycenter.Ameren'sandAmeren Missouri'sresultsofoperations,financialposition,and liquiditycouldbeadverselyaffectedifAmeren Missouri'sremainingliabilityinsuranceclaimof
$41millionasofDecember31,2014,isnotpaidbythe
insurer.UndertheprovisionsoftheCSRA,AmerenIllinois receivedICCapprovalforitsQIPriderinJanuary2015 andsubsequentlybeganincludingqualified investmentsandrecordingrevenueunderthis regulatoryframework.AmerenIllinoiswillstart recoveringcostsfromtheseinvestmentsinMarch
2015.Aswecontinuetoexperiencecostincreasesandto makeinfrastructureinvestments,AmerenMissouriand AmerenIllinoisexpecttoseekregularelectricand naturalgasrateincreasesandtimelycostrecoveryand trackingmechanismsfromtheirregulators.Ameren MissouriandAmerenIllinoiswillalsoseek,as necessary,legislativesolutionstoaddresscost recoverypressuresandtosupportinvestmentintheir energyinfrastructure.Thesepressuresincludelimited economicgrowthintheirserviceterritories,customer conservationefforts,theimpactsofadditional customerenergyefficiencyprograms,increased investmentsandexpectedfutureinvestmentsforenvironmentalcompliance,systemreliability improvements,andnewgenerationcapacity,including renewableenergyrequirements.Increasedinvestments alsoresultinhigherdepreciationandfinancingcosts.
Increasedcostsarealsoexpectedfromrisingemployee benefitcostsandhigherpropertyandincometaxes, amongothers.Foradditionalinformationregardingrecentrateordersandrelatedappeals,pendingrequestsfiledwithstateand federalregulatorycommissions,TaumSaukmatters,and separateFERCordersaffectingAmerenMissouriand AmerenIllinois,seeNote2-RateandRegulatoryMatters, Note10-CallawayEnergyCenter,andNote15-CommitmentsandContingenciesunderPartII,Item8,of thisreport.LiquidityandCapitalResources Weexpecttoincursignificantcapitalexpendituresinordertomakeinvestmentstoimproveourelectricand naturalgasutilityinfrastructureandtocomplywith existingenvironmentalregulations.Weestimatethat wewillincurupto$9.3billion(AmerenMissouri-up to$3.9billion;AmerenIllinois-upto$4.0billion;ATXI-upto$1.4billion)ofcapitalexpendituresduringtheperiodfrom2015through2019.
Existingandfutureenvironmentalregulations, includingthoserelatedtogreenhousegasemissions, orotheractionstakenbytheEPA,couldresultin significantincreasesincapitalexpendituresand operatingcosts.Theseexpensescouldbeprohibitiveat someofAmerenMissouri'scoal-firedenergycenters.
AmerenMissouri'scapitalexpendituresaresubjectto MoPSCprudencereviews,whichcouldresultincost disallowancesaswellasregulatorylag.Ameren'sand AmerenMissouri'searningscouldbenefitfrom increasedinvestmenttocomplywithenvironmental regulationsifthoseinvestmentsarereflectedand recoveredtimelyinrates.
AmerenMissouricontinuestoevaluateitslonger-term needsfornewbaseloadandpeakingelectricgeneration capacity.AmerenMissourifilesanon-binding integratedresourceplanwiththeMoPSCeverythree years.AmerenMissouri'sintegratedresourceplanfiled withtheMoPSCinOctober2014isa20-yearplanthat supportsamorefuel-diverseenergyportfolioin Missouri,includingcoal,solar,wind,naturalgasand nuclearpower.Theplanincludesexpandingrenewable generation,retiringcoal-firedgenerationasenergy centersreachtheendoftheirusefullives,andadding natural-gas-firedcombinedcyclegeneration.Ameren Missouricontinuestostudyfuturealternatives, includingadditionalcustomerenergyefficiency programs,thatcouldhelpdefernewenergycenter construction.AmerenMissouri'sintegratedresource planisprojectedtoachievethecarbonemissions reductionsproposedintheEPA'sCleanPowerPlanby 2035,ratherthantheEPA'sfinaltargetdateof2030or itsinterimtargetdatesbeginningin2020.
59 AmerenMissouricontinuestoevaluateitspotentialcomplianceplansfortheproposedCleanPowerPlan.
PreliminarystudiessuggestthatiftheproposedClean PowerPlanweretobefinalizedinitscurrentform, AmerenMissourimayneedtoincurneworaccelerated capitalexpendituresandincreasedfuelcostsinorderto achievecompliance.Asproposed,theCleanPower Planwouldrequirethestates,includingMissouriand Illinois,tosubmitcomplianceplansasearlyas2016.
Thestates'complianceplansmightrequireAmeren Missouritoconstructnatural-gas-firedcombinedcycle generationandrenewablegeneration,currently estimatedtocostapproximately$2billionby2020,that AmerenMissouribelieveswouldotherwisenotbe necessarytomeettheenergyneedsofitscustomers.
Additionally,Missouri'simplementationofthe proposedrules,ifadopted,couldresultintheclosure oralterationoftheoperationofsomeofAmeren Missouri'scoalandnaturalgas-firedenergycenters, whichcouldresultinincreasedoperatingcostsor impairmentofassets.
Tofundinvestmentrequirementsofourbusinesses,weseektomaintainaccesstothecapitalmarketsat commerciallyattractiverates.Weseektoenhance regulatoryframeworksandreturnsinordertoimprove liquidity,creditmetrics,andrelatedaccesstocapital.
InDecember2014,theAmerenCompaniesamendedandrestatedtheircreditagreementstocumulatively provide$2.1billionofcreditthroughDecember11, 2019,subjecttoa364-dayrepaymentterminthecase ofAmerenMissouriandAmerenIllinois.SeeNote4-Short-termDebtandLiquidityunderPartII,Item8,of thisreportforadditionalinformationregardingthe 2012CreditAgreements.Ameren,AmerenMissouri, andAmerenIllinoisbelievethattheirliquidityis adequategiventheircashfromoperatingactivities, capitalexpenditures,andrelatedfinancingplans.
However,therecanbenoassurancethatsignificant changesineconomicconditions,disruptionsinthe capitalandcreditmarkets,orotherunforeseenevents willnotmateriallyaffecttheirabilitytoexecutetheir expectedoperating,capital,orfinancingplans.
AsofDecember31,2014,Amerenhad$531millionintaxbenefitsfromfederalandstatenetoperatingloss carryforwards(AmerenMissouri-$86millionand AmerenIllinois-$137million)and$131millionin federalandstateincometaxcreditcarryforwards (AmerenMissouri-$21millionandAmerenIllinois-$2million).Thesetaxbenefitsarestillsubjecttoaudits andexaminationsbytaxingauthorities.Consistentwith thetaxallocationagreementbetweenAmerenandits subsidiaries,thesecarryforwardsareexpectedto partiallyoffsetincometaxliabilitiesforAmeren MissouriandAmerenIllinoisduring2015and2016, whileAmerendoesnotexpecttomakematerialfederal incometaxpaymentsuntil2017.Inaddition,Ameren has$55millionofexpectedincometaxrefundsand stateoverpaymentsthatwilloffsetincometaxliabilities into2017.Thesetaxbenefits,primarilyattheAmeren (parent)level,whenrealized,willbeavailabletofund electrictransmissioninvestments,specificallyATXI's IllinoisRiversproject.
Amerenexpectsitscashusedforcapitalexpenditures anddividendstoexceedcashprovidedbyoperating activitiesoverthenextseveralyears.Amerendoesnot expecttheneedforpublicequityissuancestofund suchcashshortfalls,butmayconsiderissuingstock throughitsDRPlusandits401(k)plans.
Theuseofcashfromoperatingactivitiesandshort-termborrowingstofundcapitalexpendituresandother long-terminvestmentsmayperiodicallyresultina workingcapitaldeficit,asdefinedbycurrentliabilities exceedingcurrentassets,aswasthecaseat December31,2014.Theworkingcapitaldeficitasof December31,2014,wasprimarilytheresultofour relianceoncommercialpaperissuances,asopposedto long-termdebtissuances.Amereniscurrently evaluatingoptionsforrefinancingtheshort-termdebt includingtheissuanceoflong-termnotes.Amerenhad
$714millionofcommercialpaperissuances outstandingasofDecember31,2014.Withthe2012 CreditAgreements,Amerenhasaccessto$2.1billion ofcreditcapacity,ofwhich$1.4billionwasavailableat December31,2014.Theaboveitemscouldhaveamaterialimpactonourresultsofoperations,financialposition,orliquidity.
Additionally,intheordinarycourseofbusiness,weevaluate strategiestoenhanceourresultsofoperations,financial position,orliquidity.Thesestrategiesmayinclude acquisitions,divestitures,andopportunitiestoreducecosts orincreaserevenues,andotherstrategicinitiativesto increaseAmeren'sstockholdervalue.Weareunableto predictwhich,ifany,oftheseinitiativeswillbeexecuted.
Theexecutionoftheseinitiativesmayhaveamaterial impactonourfutureresultsofoperations,financial position,orliquidity.REGULATORYMATTERSSeeNote2-RateandRegulatoryMattersunderPartII,Item8,ofthisreport.ACCOUNTINGMATTERSCriticalAccountingEstimatesPreparationofthefinancialstatementsandrelateddisclosuresincompliancewithGAAPrequirestheapplicationofappropriatetechnicalaccountingrulesandguidance,aswellastheuseofestimates.Theseestimatesinvolvejudgmentsregardingmanyfactorsthatinandofthemselvescouldmateriallyaffectthefinancialstatementsanddisclosures.Wehaveoutlinedbelowthecriticalaccountingestimatesthatwebelievearethemostdifficult,subjective,orcomplex.Anychangein theassumptionsorjudgmentsappliedindeterminingthefollowingmatters,amongothers,couldhaveamaterialimpacton futurefinancialresults.
60 AccountingEstimateUncertaintiesAffectingApplicationRegulatoryMechanismsandCostRecoveryWedefercostsinaccordancewithauthoritativeaccountingguidanceandmakeinvestmentsthatwe assumewillbecollectedinfuturerates.
Regulatoryenvironmentandexternalregulatory decisionsandrequirements Anticipatedfutureregulatorydecisionsandour assessmentoftheirimpact Impactofderegulation,ratefreezes,prudencereviews, andoppositionduringtheratemakingprocessthatmay limitourabilitytotimelyrecovercosts AmerenIllinois'assessmentofandabilitytoestimate thecurrentyear'selectricdeliveryservicecoststobe reflectedinrevenuesandrecoveredfromcustomersin asubsequentyearundertheIEIMAperformance-based formularatemakingprocess AmerenIllinois'andATXI'sassessmentofandabilityto estimatethecurrentyear'selectrictransmissionservice coststobereflectedinrevenuesandrecoveredfrom customersinasubsequentyearundertheFERC ratemakingprocess AmerenMissouri'sestimateofrevenuerecoveryunder theMEEIABasisforJudgment Wedeterminewhichcostsarerecoverablebyreviewingpreviousrulingsbyregulatoryauthoritiesinjurisdictionswherewe operateandanyotherfactorsthatmayindicatewhethercostrecoveryisprobable.Iffactsandcircumstancesleadusto concludethatarecordedregulatoryassetisnolongerprobableofrecoveryorthatplantassetsareprobableofdisallowance, werecordachargetoearnings,whichcouldbematerial.AmerenIllinoisestimatesitsannualrevenuerequirementpursuant totheIEIMAforinterimperiodsbyusinginternalforecastedinformation,suchasprojectedoperationsandmaintenance expenses,depreciationexpense,taxesotherthanincometaxes,andratebase,aswellaspublishedforecasteddataregarding thatyear'smonthlyaverageyieldsofthe30-yearUnitedStatesTreasurybonds.AmerenIllinoisestimatesitsannualrevenue requirementasofDecember31ofeachyearusingthatyear'sactualoperatingresultsandassessestheprobabilityof recoveryfromorrefundtocustomersthattheICCwillorderattheendofthefollowingyear.Variationsincostsincurred, investmentsmade,orordersbytheICCorcourtscanresultinasubsequentchangeinAmerenIllinois'estimate.Ameren IllinoisandATXIfollowasimilarprocessfortheirFERCrate-regulatedelectrictransmissionbusinesses.AmerenMissouri estimateslostrevenuesresultingfromthecustomerenergyefficiencyprogramsimplementedbytheMEEIA.AmerenMissouriusesaMEEIAridertocollectfromorrefundtocustomersanyannualdifferenceintheactualamountsincurredand theamountscollectedfromcustomers.SeeNote2-RateandRegulatoryMattersunderPartII,Item8,ofthisreportfor quantificationoftheseassetsforeachoftheAmerenCompanies.SeeNote1-SummaryofSignificantAccountingPolicies underPartII,Item8,ofthisreportforalistingofregulatorymechanismsusedbyAmerenMissouriandAmerenIllinois.BenefitPlanAccountingBasedonactuarialcalculations,weaccruecostsof providingfutureemployeebenefitsinaccordancewith authoritativeaccountingguidanceregardingbenefitplans.
SeeNote11-RetirementBenefitsunderPartII,Item8, ofthisreport.
Futurerateofreturnonpensionandotherplanassets Valuationinputsandassumptionsusedinthefairvalue measurementsofplanassets,excludingthoseinputs thatarereadilyobservable Interestratesusedinvaluingbenefitobligations Healthcarecosttrendrates Timingofemployeeretirementsandmortality
assumptions Abilitytorecovercertainbenefitplancostsfromour
ratepayers Changingmarketconditionsthatmayaffectinvestment andinterestrateenvironments Impactsofthefederalhealthcarereformlegislation enactedin2010 61 AccountingEstimateUncertaintiesAffectingApplicationBasisforJudgmentOurultimateselectionofthediscountrate,healthcaretrendrate,andexpectedrateofreturnonpensionandother postretirementbenefitplanassetsisbasedonourconsistentapplicationofassumption-settingmethodologiesandour reviewofavailablehistorical,current,andprojectedrates,asapplicable.Wealsomakemortalityassumptionsforestimatingourpensionandotherpostretirementbenefitobligations.During2014,AmerenadoptedtheSocietyofActuaries2014 MortalityTablesReportandMortalityImprovementScale.Theupdatedmortalitytablesassumeincreasinglifeexpectanciesforouremployeesandretirees,whichhasresultedinanincreasetoourpensionandotherpostretirementbenefit obligations.SeeNote11-RetirementBenefitsunderPartII,Item8,ofthisreportforsensitivityofAmeren'sbenefitplansto potentialchangesintheseassumptions.AccountingforContingenciesWemakejudgmentsandestimatesintherecordingand thedisclosingofliabilitiesforclaims,litigation, environmentalremediation,theactionsofvarious regulatoryagencies,orothermattersthatoccurinthe normalcourseofbusiness.Werecordalosscontingency whenitisprobablethataliabilityhasbeenincurredand thattheamountofthelosscanbereasonablyestimated.
Estimatingfinancialimpactofevents Estimatinglikelihoodofvariouspotentialoutcomes Regulatoryandpoliticalenvironmentsand
requirements Outcomeoflegalproceedings,settlements,orother
factorsChangesinregulation,expectedscopeofwork, technologyortimingofenvironmentalremediationBasisforJudgment Thedeterminationofalosscontingencyrequiressignificantjudgmentastotheexpectedoutcomeofeachcontingencyin futureperiods.Inmakingthedeterminationastotheamountofpotentiallossandtheprobabilityofloss,weconsiderall availableevidence,includingtheexpectedoutcomeofpotentiallitigation.Ifnoestimateisbetterthananotherwithinour rangeofestimates,werecordasourbestestimateofalosstheminimumvalueofourestimatedrangeofoutcomes.Asadditionalinformationbecomesavailable,wereassessthepotentialliabilityrelatedtothecontingencyandreviseour estimates.Inourevaluationoflegalmatters,managementconsultswithlegalcounselandreliesonanalysisofrelevantcase lawandlegalprecedents.SeeNote2-RateandRegulatoryMatters,Note10-CallawayEnergyCenter,Note15-CommitmentsandContingencies,andNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8, ofthisreportforinformationontheAmerenCompanies'contingencies.AccountingforIncomeTaxesBasedonauthoritativeaccountingguidance,werecord theprovisionforincometaxes,deferredtaxassetsand liabilities,andavaluationallowanceagainstnetdeferred taxassets,ifany.SeeNote13-IncomeTaxesunderPart II,Item8,ofthisreport.
Changesinbusiness,industry,laws,technology,or economicandmarketconditionsaffectingforecasted financialconditionand/orresultsofoperations Estimatesoftheamountandcharacteroffuturetaxable
incomeEnactedtaxratesapplicabletotaxableincomeinyears inwhichtemporarydifferencesarerecoveredorsettled Effectivenessofimplementingtaxplanningstrategies Changesinincometaxlaws Resultsofauditsandexaminationsbytaxing
authoritiesBasisforJudgment Thereportingoftax-relatedassetsrequirestheuseofestimatesandsignificantmanagementjudgment.Deferredtaxassets arerecordedtorepresentfutureeffectsonincometaxesfortemporarydifferencesbetweenthebasisofassetsforfinancial reportingandtaxpurposes.Althoughmanagementbelievesthatcurrentestimatesfordeferredtaxassetsarereasonable, actualresultscoulddifferfromtheseestimatesforavarietyofreasons,includingachangeinforecastedfinancialcondition and/orresultsofoperations,changeinincometaxlawsorenactedtaxrates,theform,structure,andtimingofassetorstock salesordispositions,andresultsofauditsandexaminationsbytaxingauthorities.Valuationallowancesagainstdeferredtaxassetsarerecordedwhenmanagementconcludesitismorelikelythannotsuchassetwillnotberealizedinfutureperiods.
Accountingforincometaxesalsorequiresthatonlytaxbenefitsforpositionstakenorexpectedtobetakenontaxreturns thatmeetthemore-likely-than-notrecognitionthresholdcanberecognizedorcontinuetoberecognized.Managementevaluateseachpositionsolelyonthetechnicalmeritsandfactsandcircumstancesoftheposition,assumingthattheposition willbeexaminedbyataxingauthoritythathasfullknowledgeofallrelevantinformation.Significantjudgmentisrequiredto determinerecognitionthresholdsandtherelatedamountoftaxbenefitstoberecognized.Ateachperiod-end,andasnew developmentsoccur,managementreevaluatesitstaxpositions.SeeNote13-IncomeTaxesunderPartII,Item8,ofthis reportfortheamountofdeferredtaxassetsanduncertaintaxpositionsrecordedatDecember31,2014.
62 AccountingEstimateUncertaintiesAffectingApplicationUnbilledRevenueAttheendofeachperiod,Ameren,AmerenMissouri,andAmerenIllinoisestimatetheusagethathasbeenprovided tocustomersbutnotyetbilled.Thisusageamount,along withaperunitprice,isusedtoestimateanunbilled
balance.Estimatingcustomerenergyusage Estimatingimpactsofweatherandotherusage-affectingfactorsfortheunbilledperiod Estimatinglossofenergyduringtransmissionand
deliveryBasisforJudgment Webaseourestimateofunbilledrevenueeachperiodonthevolumeofenergydelivered,asvaluedbyamodelofbilling cyclesandhistoricalusageratesandgrowthorcontractionbycustomerclassforourservicearea.Thisfigureisthen adjustedforthemodeledimpactofseasonalandweathervariationsbasedonhistoricalresults.Seethebalancesheetfor eachoftheAmerenCompaniesunderPartII,Item8,ofthisreportforunbilledrevenueamounts.ImpactofFutureAccountingPronouncementsSeeNote1-SummaryofSignificantAccountingPoliciesunderPartII,Item8,ofthisreport.EFFECTSOFINFLATIONANDCHANGINGPRICESAmeren'sratesforretailelectricandnaturalgasutilityserviceareregulatedbytheMoPSCandtheICC.Nonretail electricratesareregulatedbytheFERC.Rateregulationis generallybasedontherecoveryofhistoricalorprojected costs.Asaresult,revenueincreasescouldlagbehind changingprices.AmerenIllinoisparticipatesinthe performance-basedformularatemakingprocesspursuant totheIEIMAforitselectricdeliveryservicebusiness.
AmerenIllinoisisrequiredtopurchaseallofitspower throughprocurementprocessesadministeredbytheIPA.
Thecostofprocuredpowercanbeaffectedby inflation.WithintheIEIMAformula,themonthlyaverage yieldsof30-yearUnitedStatesTreasurybondsarethebasis forAmerenIllinois'returnonequity.Therefore,thereisa directcorrelationbetweentheyieldofUnitedStates Treasurybonds,whichareaffectedbyinflation,andthe earningsofAmerenIllinois'electricdistributionbusiness.
Inflationaffectsouroperations,earnings,stockholders' equity,andfinancialperformance.Thecurrentreplacementcostofourutilityplantsubstantiallyexceedsourrecordedhistoricalcost.Under existingregulatorypractice,onlythehistoricalcostofplant isrecoverablefromcustomers.Asaresult,customerrates designedtoproviderecoveryofhistoricalcoststhrough depreciationmightnotbeadequatetoreplaceplantin futureyears.AmerenMissourirecoversthecostoffuelforelectricgenerationandthecostofpurchasedpowerbyadjusting ratesasallowedthroughtheFAC.AmerenIllinoisrecovers powersupplycostsfromelectriccustomersbyadjusting ratesthrougharidermechanismtoaccommodatechanges inpowerprices.ChangesinthecostofelectrictransmissionservicesaffectAmerenMissouri,AmerenIllinois,andATXI.The FERCregulatestherateschargedandthetermsand conditionsforelectricwholesaleandunbundledretailtransmissionservices.BecausetheyaremembersofMISO, AmerenMissouri's,AmerenIllinois',andATXI's transmissionratesarecalculatedinaccordancewiththe rateformulascontainedinMISO'sFERC-approvedtariff.
UndertheMISOOATT,aportionoftherevenue requirementrelatedtocertainprojectseligibleforcost sharingisallocatedtomultipleMISOpricingzones.The remainingrevenuerequirementisassignedtothepricing zonewherethetransmissionassetsarelocated.Ameren MissouriusesarateformulathatisupdatedinJuneofeach year,whichisbasedontheprioryear'scostdata.The AmerenMissourizonalrateischargedtowholesale customersintheAMMOpricingzone.Thiszonalrateisnot directlychargedtoMissouriretailcustomers,becausethe MoPSCincludestransmission-relatedcostsinsetting bundledretailratesinMissouri.AmerenIllinoisandATXI havereceivedFERCapprovaltousecompany-specific, forward-lookingrateformulatemplatesinsettingtheir transmissionrates.Theseforward-lookingratesare updatedeachJanuarywithforecastedinformation.A reconciliationduringtheyear,whichadjustsfortheactual revenuerequirementandactualsalesvolumes,isusedto adjustbillingratesinasubsequentyear.InIllinois,the AMILpricingzonetransmissionrateischargeddirectlyto wholesalecustomersandalternativeretailelectricsuppliers thatserveunbundledretailload.ForAmerenIllinoisretail customerswhohavenotchosenanalternativeretailelectric supplier,theAMILpricingzonetransmissionrateandother MISO-relatedcostsarecollectedthrougharider mechanisminAmerenIllinois'retaildistributiontariffs.InourMissouriandIllinoisretailnaturalgasutilityjurisdictions,changesinnaturalgascostsaregenerally reflectedinbillingstonaturalgascustomersthroughPGA
clauses.SeeNote2-RateandRegulatoryMattersunderPartII,Item8,ofthisreportforadditionalinformationon ourcostrecoverymechanisms.
63 ITEM7A.QUANTITATIVEANDQUALITATIVEDISCLOSURESABOUTMARKETRISKMarketriskistheriskofchangesinvalueofaphysicalassetorafinancialinstrument,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.Ourriskmanagementobjectivesaretooptimizeourphysicalgeneratingassetsandtopursuemarket opportunitieswithinprudentriskparameters.Ourrisk managementpoliciesaresetbyariskmanagementsteering committee,whichiscomposedofsenior-levelAmeren officers,withAmerenboardofdirectorsoversight.InterestRateRiskWeareexposedtomarketriskthroughchangesininterestratesassociatedwith:
long-termandshort-termvariable-ratedebt; fixed-ratedebt; 30-yearUnitedStatesTreasurybonds;and definedpensionandpostretirementbenefitplans.Wemanageourinterestrateexposurebycontrollingtheamountofdebtinstrumentswithinourtotalcapitalizationportfolioandbymonitoringtheeffectsof marketchangesoninterestrates.Fordefinedpensionand postretirementbenefitplans,wecontrolthedurationand theportfoliomixofourplanassets.Thefollowingtablepresentstheestimatedincreaseinourannualinterestexpenseanddecreaseinnetincomeif interestratesweretoincreaseby1%onvariable-ratedebt outstandingatDecember31,2014:InterestExpenseNetIncome (a)Ameren..................$9$(5)AmerenMissouri..........3(2)AmerenIllinois
............(b)(b)(a)Calculationsarebasedonanestimatedtaxrateof39%,37%,and41%forAmeren,AmerenMissouri,andAmerenIllinois, respectively.(b)Lessthan$1million.AmerenIllinois'annualreturnonequityundertheformularatemakingprocessforitselectricdistributionbusinessisdirectlycorrelatedtotheaveragemonthlyyields of30-yearUnitedStatesTreasurybondsplus580basis pointsforaparticularorcalendaryear.TheyieldsonsuchbondsareoutsideofAmerenIllinois'control.A50basis pointchangeintheaveragemonthlyyieldsofthe30-year UnitedStatesTreasurybondswouldresultinanestimated
$6millionchangeinAmeren'sandAmerenIllinois'2015 netincome.CreditRiskCreditriskrepresentsthelossthatwouldberecognizedifcounterpartiesshouldfailtoperformascontracted.Exchange-tradedcontractsaresupportedbythe financialandcreditqualityoftheclearingmembersofthe respectiveexchangesandcarryonlyanominalcreditrisk.
Inallothertransactions,weareexposedtocreditriskinthe eventofnonperformancebythecounterpartiestothe transaction.SeeNote7-DerivativeFinancialInstruments underPartII,Item8,ofthisreportforinformationonthe potentiallossoncounterpartyexposureasofDecember31, 2014.Ourrevenuesareprimarilyderivedfromsalesordeliveryofelectricityandnaturalgastocustomersin MissouriandIllinois.Ourphysicalandfinancialinstruments aresubjecttocreditriskconsistingoftradeaccounts receivablesandexecutorycontractswithmarketrisk exposures.Theriskassociatedwithtradereceivablesis mitigatedbythelargenumberofcustomersinabroad rangeofindustrygroupswhomakeupourcustomerbase.
AtDecember31,2014,nononaffiliatedcustomer representedmorethan10%,intheaggregate,ofour accountsreceivable.Additionally,AmerenIllinoisfacesrisks associatedwiththepurchaseofreceivables.TheIllinois PublicUtilitiesActrequiresAmerenIllinoistoestablish electricutilityconsolidatedbillingandpurchaseof receivablesservices.Attheoptionofanalternativeretail electricsupplier,AmerenIllinoismayberequiredto purchasethesupplier'sreceivablesrelatingtoAmeren Illinois'deliveryservicecustomerswhoelectedtoreceive powersupplyfromthealternativeretailelectricsupplier.
Whenthatoptionisselected,AmerenIllinoisproduces consolidatedbillsfortheapplicableretailcustomers reflectingchargesforelectricdeliveryserviceand purchasedreceivables.AsofDecember31,2014,Ameren Illinois'balanceofpurchasedaccountsreceivable associatedwiththeutilityconsolidatedbillingandpurchase ofreceivablesserviceswas$28million.Theriskassociated withAmerenIllinois'electricandnaturalgastrade receivablesisalsomitigatedbyarateadjustment mechanismthatallowsAmerenIllinoistorecoverthe differencebetweenitsactualnetbaddebtwrite-offsunder GAAPandtheamountofnetbaddebtwrite-offsincludedin itsbaserates.AmerenMissouriandAmerenIllinois continuetomonitortheimpactofincreasingrateson customercollections.AmerenMissouriandAmerenIllinois makeadjustmentstotheirrespectiveallowancefordoubtful accountsasdeemednecessarytoensurethatsuch allowancesareadequatetocoverestimateduncollectible customeraccountbalances.
64 InDecember2013,AmerencompletedthedivestitureofNewAERtoIPH.ThetransactionagreementbetweenAmerenandIPHrequiresthatAmeren,through December2,2015,maintainsitsfinancialobligationsin existenceasofDecember2,2013underallcreditsupport arrangementsorobligationswithrespecttoNewAERand itssubsidiaries.Amerenmustalsoprovideanyadditional creditsupportthatmaybecontractuallyrequiredpursuant toanyofthecontractsofNewAER,anditssubsidiariesas oftheclosing.IPH,NewAERanditssubsidiariesand DynegyhaveagreedtoindemnifyAmerenforcertainlosses relatingtothiscreditsupport.IPH'sindemnification obligationsaresecuredbycertainAERGandGencoassets.
However,theseindemnificationobligationsandsecurity interestsmightnotcoveralllossesthatcouldbeincurred byAmereninconnectionwiththiscreditsupport.Dynegy emergedfromitsChapter11bankruptcycaseinOctober 2012.AsofDecember31,2014,Dynegy'screditratings weresub-investment-grade.NeitherIPHnorNewAERand itssubsidiarieshaveinvestmentgradecreditratings.
Dynegy,IPH,NewAER,ortheirsubsidiariesmightbe unabletopaytheirindemnityandotherobligationsunder thetransactionagreement,MarketingCompany'snoteto Ameren,orDynegy'slimitedguaranteetoAmeren,which couldhaveamaterialadverseimpactonAmeren'sresults ofoperations,financialposition,andliquidity.Asof December31,2014,thebalanceoftheMarketingCompany notetoAmerenwas$12million.AsofDecember31,2014, Amerenprovided$114millioninguaranteesand$9million inlettersofcreditrelatingtoitscreditsupportofNewAER.EquityPriceRiskOurcostsforprovidingdefinedbenefitretirementandpostretirementbenefitplansaredependentuponanumberoffactors,includingtherateofreturnonplanassets.
Amerenmanagesplanassetsinaccordancewiththe "prudentinvestor"guidelinescontainedinERISA.Ameren's goalistoensurethatsufficientfundsareavailableto providebenefitsatthetimetheyarepayable,whilealso maximizingtotalreturnonplanassetsandminimizing expensevolatilityconsistentwithitstoleranceforrisk.
Amerendelegatesinvestmentmanagementtospecialists.
Whereappropriate,Amerenprovidestheinvestment managerwithguidelinesthatspecifyallowableand prohibitedinvestmenttypes.Amerenregularlymonitors managerperformanceandcompliancewithinvestment
guidelines.Theexpectedreturnonplanassetsisbasedonhistoricalandprojectedratesofreturnforcurrentand plannedassetclassesintheinvestmentportfolio.Projected ratesofreturnforeachassetclassareestimatedafteran analysisofhistoricalexperience,futureexpectations,and thevolatilityofthevariousassetclasses.Afterconsidering thetargetassetallocationforeachassetclass,weadjust theoverallexpectedrateofreturnfortheportfoliofor historicalandexpectedexperienceofactiveportfolio managementresultscomparedwithbenchmarkreturns, andfortheeffectofexpensespaidfromplanassets.Infutureyears,thecostsofsuchplanswillbereflectedinnetincomeorregulatoryassets.Contributionstothe planscouldincreasemateriallyifwedonotachievepension andpostretirementassetportfolioinvestmentreturnsequal toorinexcessofour2015assumedreturnonplanassets of7.25%and7.00%,respectively.AmerenMissourialsomaintainsatrustfund,asrequiredbytheNRCandMissourilaw,tofundcertaincosts ofnuclearplantdecommissioning.AsofDecember31, 2014,thisfundwasinvestedindomesticequitysecurities (67%)anddebtsecurities(33%).AsofDecember31, 2014,thetrustfundtotaled$549million(2013-
$494million).Bymaintainingaportfoliothatincludeslong-termequityinvestments,AmerenMissouriseeksto maximizethereturnstobeusedtofundnuclear decommissioningcostswithinacceptableparametersof risk.However,theequitysecuritiesincludedintheportfolio areexposedtopricefluctuationsinequitymarkets.The debtsecuritiesareexposedtochangesininterestrates.
AmerenMissouriactivelymonitorstheportfolioby benchmarkingtheperformanceofitsinvestmentsagainst certainindicesandbymaintainingandperiodically reviewingestablishedtargetallocationpercentagesofthe trustassetstovariousinvestmentoptions.Ameren Missouri'sexposuretoequitypricemarketriskisinlarge partmitigatedbecauseAmerenMissouriiscurrently allowedtorecoveritsdecommissioningcosts,whichwould includeunfavorableinvestmentresults,throughelectric
rates.Additionally,Amerenhascompany-ownedlifeinsurancecontractsthatareusedtosupportAmeren's deferredcompensationplans.Theselifeinsurancecontracts includeequityanddebtinvestmentsthatareexposedto pricefluctuationsinequitymarketsandtochangesin interestrates.CommodityPriceRiskWithregardtoAmerenMissouri'sandAmerenIllinois'electricandnaturalgasdistributionbusinesses,exposuretochangingmarketpricesisinlargepartmitigatedbythefact thattherearecostrecoverymechanismsinplace.These costrecoverymechanismsallowAmerenMissouriand AmerenIllinoistopassontoretailcustomersprudently incurredcostsforfuel,purchasedpower,andnaturalgas
supply.AmerenMissouri'sandAmerenIllinois'strategyisdesignedtoreducetheeffectofmarketfluctuationsfortheir regulatedcustomers.Theeffectsofpricevolatilitycannot beeliminated.However,procurementandsalesstrategies involveriskmanagementtechniquesandinstruments,as wellasthemanagementofphysicalassets.AmerenMissourihasaFACthatallowsittorecover,throughcustomerrates,95%ofchangesinfueland purchasedpowercosts,includingtransportationcharges andrevenues,netofoff-systemsales,greaterorlessthan theamountsetinbaserates,withoutatraditionalrate proceeding,subjecttoMoPSCprudencereview.Ameren 65 Missouriremainsexposedtotheremaining5%ofsuch changes.AmerenIllinoishasacostrecoverymechanismforpowerpurchasedonbehalfofitscustomers.Ameren Illinoisisrequiredtoserveastheprovideroflastresortfor electriccustomerswithinitsterritorywhohavenotchosen analternativeretailelectricsupplier.AmerenIllinoisdoes notgenerateearningsbasedontheresaleofpowerbut ratheronthedeliveryofenergy.AmerenIllinoispurchases powerprimarilythroughMISO,withadditionalprocurement eventsadministeredbytheIPA.TheIPAhasproposedand theICChasapprovedmultipleprocurementeventscovering portionsofyearsthrough2018.In2014,approximately 741,000retailcustomers,representing74%ofAmeren Illinois'annualretailkilowatthoursales,hadelectedto purchasetheirelectricityfromanalternativeretailelectric supplier.AmerenIllinoisexpectsfullrecoveryofits purchasedpowercosts.AmerenMissouriandAmerenIllinoishavePGAclausesthatpermitcostsincurredfornaturalgastobe recovereddirectlyfromutilitycustomerswithouta traditionalrateproceeding,subjecttoprudencereview.Withregardtoourexposureforcommoditypriceriskforconstructionandmaintenanceactivities,Amerenis exposedtochangesinmarketpricesformetalcommodities andtolaboravailability.SeeTransmissionandSupplyofElectricPowerunderPartI,Item1,ofthisreportforthepercentagesofour historicalneedssatisfiedbycoal,nuclear,naturalgas,oil, andrenewables.AlsoseeNote15-Commitmentsand ContingenciesunderPartII,Item8,ofthisreportfor additionalinformation.CommoditySupplierRiskTheuseofultra-low-sulfurcoalispartofAmerenMissouri'senvironmentalcompliancestrategy.Ameren Missourihasamultiyearagreementtopurchaseultra-low-sulfurcoalthrough2017tocomplywithenvironmental regulations.Thecoalcontractiswithasinglesupplier.
Disruptionsofthedeliveriesofthatultra-low-sulfurcoal fromthesuppliercouldcompromiseAmerenMissouri's abilitytooperateincompliancewithemissionstandards.
Othersourcesofultra-low-sulfurcoalarelimited,andthe constructionofpollutioncontrolequipmentrequires significantleadtimeifAmerenMissouriweretoexperience atemporarydisruptionofultra-low-sulfurcoaldeliveries thatcausedittoexhaustitsexistinginventory,andifother sourcesofultra-low-sulfurcoalwerenotavailable,Ameren Missouriwoulduseitsexistingemissionallowancesor purchaseemissionallowancestoachievecompliancewith environmentalregulations.Currently,theCallawayenergycenterusesnuclearfuelassembliesofadesignfabricatedbyonlyasinglesupplier.
ThatsupplieriscurrentlytheonlyNRC-licensedsupplier abletoprovidefuelassembliestotheCallawayenergy center.IfAmerenMissourishoulddecidetochangefuel suppliersortochangethetypeoffuelassemblydesignthat iscurrentlylicensedforuseattheCallawayenergycenter, upto3yearsofanalysisandlicensingeffortwouldbe requiredtofullyimplementsuchachange.FairValueofContractsWeusederivativesprincipallytomanagetheriskofchangesinmarketpricesfornaturalgas,power,anduranium,aswellastheriskofchangesinrailtransportationsurchargesthroughfueloilhedges.Thefollowingtablepresentsthefavorable (unfavorable)changesinthefairvalueofallderivativecontractsmarked-to-marketduringtheyearendedDecember31,2014.
Weusevariousmethodstodeterminethefairvalueofourcontracts.Inaccordancewithauthoritativeaccountingguidancefor fairvaluehierarchylevels,thesourcesweusedtodeterminethefairvalueofthesecontractswereactivequotes(Level1),
inputscorroboratedbymarketdata(Level2),andothermodelingandvaluationmethodsthatarenotcorroboratedbymarket data(Level3).SeeNote8-FairValueMeasurementsunderPartII,Item8,ofthisreportforadditionalinformationregarding themethodsusedtodeterminethefairvalueofthesecontracts.
Ameren Missouri AmerenIllinoisAmerenFairvalueofcontractsatbeginningofyear,net..................................................$9$(153)$(144)Contractsrealizedorotherwisesettledduringtheperiod
...........................................(15)3621Changesinfairvaluesattributabletochangesinvaluationtechniqueandassumptions...................---Fairvalueofnewcontractsenteredintoduringtheperiod..........................................(5)(16)(21)Otherchangesinfairvalue
..................................................................(17)(52)(69)Fairvalueofcontractsoutstandingatendofyear,net.............................................$(28)$(185)$(213) 66 ThefollowingtablepresentsmaturitiesofderivativecontractsasofDecember31,2014,basedonthehierarchylevelsusedtodeterminethefairvalueofthecontracts:SourcesofFairValue MaturityLessThan1Year Maturity1-3Years Maturity3-5YearsMaturityinExcessof5Years TotalFairValueAmerenMissouri:Level1........................................................$(16)$(6)$-$-$(22)Level2 (a).......................................................(1)(3)(2)-(6)Level3 (b).......................................................2(2)---
Total..........................................................$(15)$(11)$(2)$-$(28)AmerenIllinois:
Level1........................................................$-$-$-$-$-Level2 (a).......................................................(31)(12)--(43)Level3 (b).......................................................(10)(20)(18)(94)(142)
Total..........................................................$(41)$(32)$(18)$(94)$(185)
Ameren:
Level1........................................................$(16)$(6)$-$-$(22)Level2 (a).......................................................(32)(15)(2)-(49)Level3 (b).......................................................(8)(22)(18)(94)(142)
Total..........................................................$(56)$(43)$(20)$(94)$(213)(a)Principallyfixed-pricevs.floatingover-the-counterpowerswaps,powerforwards,andfixed-pricevs.floatingover-the-counternaturalgas swaps.(b)Principallypowerforwardcontractvaluesbasedoninformationfromexternalsources,historicalresults,andourestimates.Level3alsoincludesoptioncontractvaluesbasedonaBlack-Scholesmodel.ITEM8.FINANCIALSTATEMENTSANDSUPPLEMENTARYDATAReportofIndependentRegisteredPublicAccountingFirm TotheBoardofDirectorsandShareholdersofAmerenCorporation:Inouropinion,theconsolidatedfinancialstatementslistedintheindexappearingunderItem15(a)(1)presentfairly,inallmaterialrespects,thefinancialpositionofAmerenCorporationanditssubsidiariesatDecember31,2014and2013,andtheresultsoftheiroperationsandtheircashflowsforeachofthethreeyearsintheperiodendedDecember31,2014,in conformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.Inaddition,inouropinion,the financialstatementscheduleslistedintheindexappearingunderItem15(a)(2)presentfairly,inallmaterialrespects,the informationsetforththereinwhenreadinconjunctionwiththerelatedconsolidatedfinancialstatements.Also,inouropinion, theCompanymaintained,inallmaterialrespects,effectiveinternalcontroloverfinancialreportingasofDecember31,2014, basedoncriteriaestablishedinInternalControl-IntegratedFramework(2013)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO).TheCompany'smanagementisresponsibleforthesefinancialstatementsandfinancialstatementschedules,formaintainingeffectiveinternalcontroloverfinancialreportingandforitsassessmentof theeffectivenessofinternalcontroloverfinancialreporting,includedinManagement'sReportonInternalControlover FinancialReportingappearingunderItem9A.Ourresponsibilityistoexpressopinionsonthesefinancialstatements,onthe financialstatementschedules,andontheCompany'sinternalcontroloverfinancialreportingbasedonourintegratedaudits.
WeconductedourauditsinaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(United States).Thosestandardsrequirethatweplanandperformtheauditstoobtainreasonableassuranceaboutwhetherthe financialstatementsarefreeofmaterialmisstatementandwhethereffectiveinternalcontroloverfinancialreportingwas maintainedinallmaterialrespects.Ourauditsofthefinancialstatementsincludedexamining,onatestbasis,evidence supportingtheamountsanddisclosuresinthefinancialstatements,assessingtheaccountingprinciplesusedandsignificant estimatesmadebymanagement,andevaluatingtheoverallfinancialstatementpresentation.Ourauditofinternalcontrolover financialreportingincludedobtaininganunderstandingofinternalcontroloverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedonthe assessedrisk.Ourauditsalsoincludedperformingsuchotherproceduresasweconsiderednecessaryinthecircumstances.
Webelievethatourauditsprovideareasonablebasisforouropinions.Acompany'sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerally acceptedaccountingprinciples.Acompany'sinternalcontroloverfinancialreportingincludesthosepoliciesandprocedures that(i)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsand 67 dispositionsoftheassetsofthecompany;(ii)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthe company;and(iii)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,or dispositionofthecompany'sassetsthatcouldhaveamaterialeffectonthefinancialstatements.Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecomeinadequate becauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate./s/PricewaterhouseCoopersLLPPricewaterhouseCoopersLLPSt.Louis,Missouri March2,2015ReportofIndependentRegisteredPublicAccountingFirmTotheBoardofDirectorsandShareholdersofUnionElectricCompany:Inouropinion,thefinancialstatementslistedintheindexappearingunderItem15(a)(1)presentfairly,inallmaterialrespects,thefinancialpositionofUnionElectricCompanyatDecember31,2014and2013,andtheresultsofitsoperationsanditscash flowsforeachofthethreeyearsintheperiodendedDecember31,2014,inconformitywithaccountingprinciplesgenerally acceptedintheUnitedStatesofAmerica.Inaddition,inouropinion,thefinancialstatementschedulelistedintheindex appearingunderItem15(a)(2)presentsfairly,inallmaterialrespects,theinformationsetforththereinwhenreadin conjunctionwiththerelatedfinancialstatements.Thesefinancialstatementsandfinancialstatementschedulearethe responsibilityoftheCompany'smanagement.Ourresponsibilityistoexpressanopiniononthesefinancialstatementsand financialstatementschedulebasedonouraudits.Weconductedourauditsofthesestatementsinaccordancewiththe standardsofthePublicCompanyAccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanand performtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements, assessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,andevaluatingtheoverallfinancial statementpresentation.Webelievethatourauditsprovideareasonablebasisforouropinion./s/PricewaterhouseCoopersLLPPricewaterhouseCoopersLLPSt.Louis,MissouriMarch2,2015ReportofIndependentRegisteredPublicAccountingFirmTotheBoardofDirectorsandShareholdersofAmerenIllinoisCompany:Inouropinion,thefinancialstatementslistedintheindexappearingunderItem15(a)(1)presentfairly,inallmaterialrespects,thefinancialpositionofAmerenIllinoisCompanyatDecember31,2014and2013,andtheresultsofitsoperationsandits cashflowsforeachofthethreeyearsintheperiodendedDecember31,2014,inconformitywithaccountingprinciples generallyacceptedintheUnitedStatesofAmerica.Inaddition,inouropinion,thefinancialstatementschedulelistedinthe indexappearingunderItem15(a)(2)presentsfairly,inallmaterialrespects,theinformationsetforththereinwhenreadin conjunctionwiththerelatedfinancialstatements.Thesefinancialstatementsandfinancialstatementschedulearethe responsibilityoftheCompany'smanagement.Ourresponsibilityistoexpressanopiniononthesefinancialstatementsand financialstatementschedulebasedonouraudits.Weconductedourauditsofthesestatementsinaccordancewiththe standardsofthePublicCompanyAccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanand performtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements, assessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,andevaluatingtheoverallfinancial statementpresentation.Webelievethatourauditsprovideareasonablebasisforouropinion./s/PricewaterhouseCoopersLLPPricewaterhouseCoopersLLPSt.Louis,MissouriMarch2,2015 68 AMERENCORPORATIONCONSOLIDATEDSTATEMENTOFINCOME(LOSS)(Inmillions,exceptpershareamounts)YearEndedDecember31, 2014 2013 2012OperatingRevenues:
Electric$4,913$4,832$4,857 Gas 1,1401,006924Totaloperatingrevenues 6,0535,8385,781OperatingExpenses:
Fuel 826845714Purchasedpower 454502780Gaspurchasedforresale 615526472Otheroperationsandmaintenance 1,6911,6171,511Depreciationandamortization 745706673Taxesotherthanincometaxes 468458443Totaloperatingexpenses 4,7994,6544,593OperatingIncome 1,2541,1841,188OtherIncomeandExpenses:Miscellaneousincome 796970Miscellaneousexpense 222637Totalotherincome 574333InterestCharges 341398392IncomeBeforeIncomeTaxes 970829829IncomeTaxes 377311307IncomefromContinuingOperations 593518522LossfromDiscontinuedOperations,NetofTaxes(Note16)
(1)(223)(1,496)NetIncome(Loss) 592295(974)Less:NetIncome(Loss)AttributabletoNoncontrollingInterests:ContinuingOperations 6 66DiscontinuedOperations
--(6)NetIncome(Loss)AttributabletoAmerenCorporation:ContinuingOperations587512516DiscontinuedOperations(1)(223)(1,490)NetIncome(Loss)AttributabletoAmerenCorporation$586$289$(974)Earnings(Loss)perCommonShare-Basic:ContinuingOperations$2.42$2.11$2.13DiscontinuedOperations-(0.92)(6.14)Earnings(Loss)perCommonShare-Basic$2.42$1.19$(4.01)Earnings(Loss)perCommonShare-Diluted:ContinuingOperations$2.40$2.10$2.13DiscontinuedOperations-(0.92)(6.14)Earnings(Loss)perCommonShare-Diluted$2.40$1.18$(4.01)DividendsperCommonShare$1.61$1.60$1.60AverageCommonSharesOutstanding-Basic 242.6242.6242.6AverageCommonSharesOutstanding-Diluted 244.4244.5243.0Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
69 AMERENCORPORATIONCONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOME(LOSS)(Inmillions)YearEndedDecember31, 2014 2013 2012IncomefromContinuingOperations$593$518$522OtherComprehensiveIncome(Loss),NetofTaxes:Pensionandotherpostretirementbenefitplanactivity,netofincometaxes(benefit)of$(7),$16,and$(6),respectively (12)30(8)ComprehensiveIncomefromContinuingOperations 581548514Less:ComprehensiveIncomefromContinuingOperationsAttributabletoNoncontrollingInterests 6 66ComprehensiveIncomefromContinuingOperationsAttributabletoAmerenCorporation575542508LossfromDiscontinuedOperations,NetofTaxes(1)(223)(1,496)OtherComprehensiveIncome(Loss)fromDiscontinuedOperations,NetofIncomeTaxes(Benefit)of$-,$(10),and$40,respectively-(18)58ComprehensiveLossfromDiscontinuedOperations (1)(241)(1,438)Less:ComprehensiveIncomefromDiscontinuedOperationsAttributabletoNoncontrollingInterest
-12ComprehensiveLossfromDiscontinuedOperationsAttributabletoAmerenCorporation(1)(242)(1,440)ComprehensiveIncome(Loss)AttributabletoAmerenCorporation$574$300$(932)Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
70 AMERENCORPORATIONCONSOLIDATEDBALANCESHEET(Inmillions,exceptpershareamounts)December31, 2014 2013 ASSETSCurrentAssets:Cashandcashequivalents
$5$30Accountsreceivable-trade(lessallowancefordoubtfulaccountsof$21and$18,respectively) 423 404Unbilledrevenue 265 304Miscellaneousaccountsandnotesreceivable 81 196Materialsandsupplies 524 526Currentregulatoryassets 295 156Currentaccumulateddeferredincometaxes,net 352 106Othercurrentassets 86 85Assetsofdiscontinuedoperations(Note16) 15 165Totalcurrentassets 2,046 1,972PropertyandPlant,Net 17,424 16,205InvestmentsandOtherAssets:Nucleardecommissioningtrustfund 549 494 Goodwill 411 411Regulatoryassets 1,582 1,240Otherassets 664 720Totalinvestmentsandotherassets 3,206 2,865TOTALASSETS$22,676$21,042LIABILITIESANDEQUITYCurrentLiabilities:Currentmaturitiesoflong-termdebt$120$534Short-termdebt 714 368Accountsandwagespayable 711 806Taxesaccrued 46 55Interestaccrued 85 86Currentregulatoryliabilities 106 216Othercurrentliabilities 434 351Liabilitiesofdiscontinuedoperations(Note16) 33 45Totalcurrentliabilities 2,249 2,461Long-termDebt,Net 6,120 5,504DeferredCreditsandOtherLiabilities:Accumulateddeferredincometaxes,net 3,923 3,250Accumulateddeferredinvestmenttaxcredits 64 63Regulatoryliabilities 1,850 1,705Assetretirementobligations 396 369Pensionandotherpostretirementbenefits 705 466Otherdeferredcreditsandliabilities 514 538Totaldeferredcreditsandotherliabilities 7,452 6,391CommitmentsandContingencies(Notes2,10,15and16)AmerenCorporationStockholders'Equity:Commonstock,$.01parvalue,400.0sharesauthorized-sharesoutstandingof242.6 2 2Otherpaid-incapital,principallypremiumoncommonstock 5,617 5,632Retainedearnings 1,103 907Accumulatedothercomprehensiveincome(loss)
(9)3TotalAmerenCorporationstockholders'equity 6,713 6,544NoncontrollingInterests 142 142Totalequity 6,855 6,686TOTALLIABILITIESANDEQUITY$22,676$21,042Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
71 AMERENCORPORATIONCONSOLIDATEDSTATEMENTOFCASHFLOWS(Inmillions)YearEndedDecember31, 2014 2013 2012CashFlowsFromOperatingActivities:Netincome(loss)$592$295$(974)Lossfromdiscontinuedoperations,netoftax 12231,496Adjustmentstoreconcilenetincome(loss)tonetcashprovidedbyoperatingactivities:Depreciationandamortization 710666633Amortizationofnuclearfuel 817183Amortizationofdebtissuancecostsandpremium/discounts 222420Deferredincometaxesandinvestmenttaxcredits,net 451410257Allowanceforequityfundsusedduringconstruction (34)(37)(36)Stock-basedcompensationcosts 252729 Other (24)23(7)Changesinassetsandliabilities:
Receivables 31(60)30Materialsandsupplies 360(28)Accountsandwagespayable 1081(34)Taxesaccrued (44)(195)(4)Regulatoryassetsandliabilities (281)2914Assets,other 302040Liabilities,other (28)(14)5Pensionandotherpostretirementbenefits (10)(28)(23)Counterpartycollateral,net 224141Premiumspaidonlong-termdebtrepurchases
--(138)Netcashprovidedbyoperatingactivities-continuingoperations 1,5571,6361,404Netcashprovided(usedin)byoperatingactivities-discontinuedoperations (6)57286Netcashprovidedbyoperatingactivities 1,5511,6931,690CashFlowsFromInvestingActivities:Capitalexpenditures (1,785)(1,379)(1,063)Nuclearfuelexpenditures (74)(45)(91)Purchasesofsecurities-nucleardecommissioningtrustfund (405)(214)(403)Salesandmaturitiesofsecurities-nucleardecommissioningtrustfund 391196384Proceedsfromnotereceivable-MarketingCompany 95 6-Contributionstonotereceivable-MarketingCompany (89)(5)-Other 11120Netcashusedininvestingactivities-continuingoperations (1,856)(1,440)(1,153)Netcashprovidedby(usedin)investingactivities-discontinuedoperations 139(283)(157)Netcashusedininvestingactivities (1,717)(1,723)(1,310)CashFlowsFromFinancingActivities:Dividendsoncommonstock (390)(388)(382)Dividendspaidtononcontrollinginterestholders (6)(6)(6)Short-termdebt,net 346368(148)Maturities,redemptionsandrepurchasesoflong-termdebt (697)(399)(760)Issuancesoflong-termdebt 898278882Capitalissuancecosts (11)(2)(16)Other 1-4Netcashprovidedby(usedin)financingactivities-continuingoperations 141(149)(426)Netchangeincashandcashequivalents (25)(179)(46)Cashandcashequivalentsatbeginningofyear 30209255Cashandcashequivalentsatendofyear 530209Less:cashandcashequivalentsatendofyear-discontinuedoperations
--25Cashandcashequivalentsatendofyear-continuingoperations
$5$30$184Noncashfinancingactivity-dividendsoncommonstock$-$-$(7)CashPaid(Refunded)DuringtheYear:Interest(netof$18,$37,and$30capitalized,respectively)$333$393$433Incometaxes,net (27)81Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
72 AMERENCORPORATIONCONSOLIDATEDSTATEMENTOFSTOCKHOLDERS'EQUITY(Inmillions)December31, 2014 2013 2012CommonStock:Beginningofyear
$2$2$2Sharesissued
---Commonstock,endofyear 2 22OtherPaid-inCapital:Beginningofyear 5,6325,6165,598Stock-basedcompensationactivity (15)1618Otherpaid-incapital,endofyear 5,6175,6325,616RetainedEarnings:Beginningofyear 9071,0062,369Netincome(loss)attributabletoAmerenCorporation 586289(974)Dividends (390)(388)(389)Retainedearnings,endofyear 1,1039071,006AccumulatedOtherComprehensiveIncome(Loss):Derivativefinancialinstruments,beginningofyear
-257Changeinderivativefinancialinstruments
-(21)18Divestitureofderivativefinancialinstruments(Note16)
-(4)-Derivativefinancialinstruments,endofyear
--25Deferredretirementbenefitcosts,beginningofyear 3(33)(57)Changeindeferredretirementbenefitcosts (12)2924Divestitureofdeferredretirementbenefitcosts(Note16) Deferredretirementbenefitcosts,endofyear (9)3(33)Totalaccumulatedothercomprehensiveincome(loss),endofyear (9)3(8)TotalAmerenCorporationStockholders'Equity$6,713$6,544$6,616NoncontrollingInterests:Beginningofyear 142151149Netincomeattributabletononcontrollinginterestholders 6 6-Dividendspaidtononcontrollinginterestholders (6)(6)(6)Divestitureofnoncontrollinginterest(Note16)
-(9)-Other--8Noncontrollinginterests,endofyear 142142151TotalEquity$6,855$6,686$6,767Commonstocksharesatendofyear 242.6242.6242.6Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
73 UNIONELECTRICCOMPANY(d/b/aAMERENMISSOURI)STATEMENTOFINCOMEANDCOMPREHENSIVEINCOME(Inmillions)YearEndedDecember31, 2014 2013 2012OperatingRevenues:
Electric$3,388$3,379$3,132 Gas 164161139 Other 1 11Totaloperatingrevenues 3,5533,5413,272OperatingExpenses:
Fuel 826845714Purchasedpower 11912778Gaspurchasedforresale 827864Otheroperationsandmaintenance 946915827Depreciationandamortization 473454440Taxesotherthanincometaxes 322319304Totaloperatingexpenses 2,7682,7382,427OperatingIncome 785803845OtherIncomeandExpenses:Miscellaneousincome 605863Miscellaneousexpense 121114Totalotherincome 484749InterestCharges211210223IncomeBeforeIncomeTaxes 622640671IncomeTaxes229242252NetIncome 393398419OtherComprehensiveIncome-
--ComprehensiveIncome$393$398$419NetIncome$393$398$419PreferredStockDividends3 33NetIncomeAvailabletoCommonStockholder$390$395$416TheaccompanyingnotesastheyrelatetoAmerenMissouriareanintegralpartofthesefinancialstatements.
74 UNIONELECTRICCOMPANY(d/b/aAMERENMISSOURI)BALANCESHEET(Inmillions,exceptpershareamounts)December31, 2014 2013 ASSETSCurrentAssets:Cashandcashequivalents
$1$1Accountsreceivable-trade(lessallowancefordoubtfulaccountsof$8and$5,respectively) 190 191Accountsreceivable-affiliates 65 1Unbilledrevenue 146 168Miscellaneousaccountsandnotesreceivable 35 57Materialsandsupplies 347 352Currentregulatoryassets 163 118Othercurrentassets 92 71Totalcurrentassets 1,039 959PropertyandPlant,Net 10,867 10,452InvestmentsandOtherAssets:Nucleardecommissioningtrustfund 549 494Regulatoryassets 695 534Otherassets 391 465Totalinvestmentsandotherassets 1,635 1,493TOTALASSETS$13,541$12,904LIABILITIESANDSTOCKHOLDERS'EQUITYCurrentLiabilities:Currentmaturitiesoflong-termdebt$120$109Borrowingsfrommoneypool
-105Short-termdebt 97-Accountsandwagespayable 405 387Accountspayable-affiliates 56 30Taxesaccrued 32 220Interestaccrued 58 57Currentregulatoryliabilities 18 57Othercurrentliabilities 117 82Totalcurrentliabilities 903 1,047Long-termDebt,Net 3,879 3,648DeferredCreditsandOtherLiabilities:Accumulateddeferredincometaxes,net 2,806 2,524Accumulateddeferredinvestmenttaxcredits 61 59Regulatoryliabilities 1,147 1,041Assetretirementobligations 389 366Pensionandotherpostretirementbenefits 274 189Otherdeferredcreditsandliabilities 30 37Totaldeferredcreditsandotherliabilities 4,707 4,216CommitmentsandContingencies(Notes2,10,14and15)Stockholders'Equity:Commonstock,$5parvalue,150.0sharesauthorized-102.1sharesoutstanding 511 511Otherpaid-incapital,principallypremiumoncommonstock 1,569 1,560Preferredstock 80 80Retainedearnings 1,892 1,842Totalstockholders'equity 4,052 3,993TOTALLIABILITIESANDSTOCKHOLDERS'EQUITY$13,541$12,904TheaccompanyingnotesastheyrelatetoAmerenMissouriareanintegralpartofthesefinancialstatements.
75 UNIONELECTRICCOMPANY(d/b/aAMERENMISSOURI)STATEMENTOFCASHFLOWS(Inmillions)YearEndedDecember31, 2014 2013 2012CashFlowsFromOperatingActivities:Netincome$393$398$419Adjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivities:Depreciationandamortization 442419407Amortizationofnuclearfuel 817183FACprudencereviewcharges Amortizationofdebtissuancecostsandpremium/discounts 7 76Deferredincometaxesandinvestmenttaxcredits,net 24565287Allowanceforequityfundsusedduringconstruction (32)(31)(31)Other 3 18Changesinassetsandliabilities:
Receivables (10)(59)27Materialsandsupplies 845(48)Accountsandwagespayable 2542(27)Taxesaccrued (197)100(46)Regulatoryassetsandliabilities (68)68(50)Assets,other 521815Liabilities,other
-(29)14Pensionandotherpostretirementbenefits 1 22Premiumspaidonlong-termdebtrepurchases
--(62)Netcashprovidedbyoperatingactivities 9501,1431,004CashFlowsFromInvestingActivities:Capitalexpenditures (747)(648)(595)Nuclearfuelexpenditures (74)(45)(91)Purchasesofsecurities-nucleardecommissioningtrustfund (405)(214)(403)Salesandmaturitiesofsecurities-nucleardecommissioningtrustfund 391196384Moneypooladvances,net
-24(24)Taxgrantsreceivedrelatedtorenewableenergyproperties
--18 Other (2)-8Netcashusedininvestingactivities (837)(687)(703)CashFlowsFromFinancingActivities:Dividendsoncommonstock (340)(460)(400)Returnofcapitaltoparent (215)--Dividendsonpreferredstock (3)(3)(3)Short-termdebt,net 97--Moneypoolborrowings,net (105)105-Redemptions,repurchases,andmaturitiesoflong-termdebt (109)(249)(427)Issuancesoflong-termdebt 350-482Capitalissuancecosts (3)-(7)Capitalcontributionfromparent 215 41Netcashusedinfinancingactivities (113)(603)(354)Netchangeincashandcashequivalents
-(147)(53)Cashandcashequivalentsatbeginningofyear 1148201Cashandcashequivalentsatendofyear
$1$1$148Noncashfinancingactivity-capitalcontributionfromparent$9$-$-CashPaid(Refunded)DuringtheYear:Interest(netof$16,$16,and$15capitalized,respectively)$203$212$220Incometaxes,net 21586(3)TheaccompanyingnotesastheyrelatetoAmerenMissouriareanintegralpartofthesefinancialstatements.
76 UNIONELECTRICCOMPANY(d/b/aAMERENMISSOURI)STATEMENTOFSTOCKHOLDERS'EQUITY(Inmillions)December31, 2014 2013 2012CommonStock$511$511$511OtherPaid-inCapital:Beginningofyear 1,5601,5561,555Capitalcontributionfromparent(Note1) 224 41Returnofcapitaltoparent(Note1)
(215)--Otherpaid-incapital,endofyear 1,5691,5601,556PreferredStock 808080RetainedEarnings:Beginningofyear 1,8421,9071,891Netincome 393398419Commonstockdividends (340)(460)(400)Preferredstockdividends (3)(3)(3)Retainedearnings,endofyear 1,8921,8421,907TotalStockholders'Equity$4,052$3,993$4,054TheaccompanyingnotesastheyrelatetoAmerenMissouriareanintegralpartofthesefinancialstatements.
77 AMERENILLINOISCOMPANY(d/b/aAMERENILLINOIS)STATEMENTOFINCOMEANDCOMPREHENSIVEINCOME(Inmillions)YearEndedDecember31, 2014 2013 2012OperatingRevenues:
Electric$1,522$1,461$1,739 Gas 976847786 Other-3-Totaloperatingrevenues 2,4982,3112,525OperatingExpenses:Purchasedpower 343380705Gaspurchasedforresale 533448408Otheroperationsandmaintenance 771693684Depreciationandamortization 263243221Taxesotherthanincometaxes 138132130Totaloperatingexpenses 2,0481,8962,148OperatingIncome 450415377OtherIncomeandExpenses:Miscellaneousincome 17107Miscellaneousexpense 8917Totalotherincome(expense) 91(10)InterestCharges112143129IncomeBeforeIncomeTaxes 347273238IncomeTaxes14311094NetIncome 204163144OtherComprehensiveLoss,NetofTaxes:Pensionandotherpostretirementbenefitplanactivity,netofincometaxbenefitof$(2),$(2)and$(2),respectively (3)(3)(3)ComprehensiveIncome$201$160$141NetIncome$204$163$144PreferredStockDividends3 33NetIncomeAvailabletoCommonStockholder$201$160$141TheaccompanyingnotesastheyrelatetoAmerenIllinoisareanintegralpartofthesefinancialstatements.
78 AMERENILLINOISCOMPANY(d/b/aAMERENILLINOIS)BALANCESHEET(Inmillions)December31, 2014 2013 ASSETSCurrentAssets:Cashandcashequivalents
$1$1Accountsreceivable-trade(lessallowancefordoubtfulaccountsof$13and$13,respectively) 212 201Accountsreceivable-affiliates 22-Unbilledrevenue 119 135Miscellaneousaccountsreceivable 9 13Materialsandsupplies 177 174Currentregulatoryassets 129 38Currentaccumulateddeferredincometaxes,net 160 45Othercurrentassets 15 26Totalcurrentassets 844 633PropertyandPlant,Net 6,165 5,589InvestmentsandOtherAssets:
Goodwill 411 411Regulatoryassets 883 701Otherassets 78 120Totalinvestmentsandotherassets 1,372 1,232TOTALASSETS$8,381$7,454LIABILITIESANDSTOCKHOLDERS'EQUITYCurrentLiabilities:Short-termdebt$32$-Borrowingsfrommoneypool 15 56Accountsandwagespayable 207 243Accountspayable-affiliates 50 18Taxesaccrued 17 23Customerdeposits 77 79Mark-to-marketderivativeliabilities 42 36Currentenvironmentalremediation 52 43Currentregulatoryliabilities 84 159Othercurrentliabilities 124 114Totalcurrentliabilities 700 771Long-termDebt,Net 2,241 1,856DeferredCreditsandOtherLiabilities:Accumulateddeferredincometaxes,net 1,408 1,116Accumulateddeferredinvestmenttaxcredits 3 4Regulatoryliabilities 703 664Pensionandotherpostretirementbenefits 277 197Environmentalremediation 199 232Otherdeferredcreditsandliabilities 189 166Totaldeferredcreditsandotherliabilities 2,779 2,379CommitmentsandContingencies(Notes2,14and15)Stockholders'Equity:Commonstock,noparvalue,45.0sharesauthorized-25.5sharesoutstanding
--Otherpaid-incapital 1,980 1,965Preferredstock 62 62Retainedearnings 611 410Accumulatedothercomprehensiveincome 8 11Totalstockholders'equity 2,661 2,448TOTALLIABILITIESANDSTOCKHOLDERS'EQUITY$8,381$7,454TheaccompanyingnotesastheyrelatetoAmerenIllinoisareanintegralpartofthesefinancialstatements.
79 AMERENILLINOISCOMPANY(d/b/aAMERENILLINOIS)STATEMENTOFCASHFLOWS(Inmillions)YearEndedDecember31, 2014 2013 2012CashFlowsFromOperatingActivities:Netincome$204$163$144Adjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivities:Depreciationandamortization 259238214Amortizationofdebtissuancecostsandpremium/discounts 131511Deferredincometaxesandinvestmenttaxcredits,net 196104104 Other (19)4(11)Changesinassetsandliabilities:
Receivables (13)5023Materialsandsupplies (4)1520Accountsandwagespayable 719(21)Taxesaccrued (7)283Regulatoryassetsandliabilities (215)(35)64Assets,other 15519Liabilities,other 11011Pensionandotherpostretirementbenefits (6)(8)(26)Counterpartycollateral,net 144340Premiumspaidonlong-termdebtrepurchases
--(76)Netcashprovidedbyoperatingactivities 445651519CashFlowsFromInvestingActivities:Capitalexpenditures (835)(701)(442)
Other 7 65Netcashusedininvestingactivities (828)(695)(437)CashFlowsFromFinancingActivities:Dividendsoncommonstock
-(110)(189)Dividendsonpreferredstock (3)(3)(3)Short-termdebt,net 32--Moneypoolborrowings,net (41)3224Redemptions,repurchases,andmaturitiesoflong-termdebt (163)(150)(333)Issuancesoflong-termdebt 548278400Capitalissuancecosts (6)(2)(6)Capitalcontributionfromparent 15--Other 1-4Netcashprovidedby(usedin)financingactivities 38345(103)Netchangeincashandcashequivalents
-1(21)Cashandcashequivalentsatbeginningofyear 1-21Cashandcashequivalentsatendofyear
$1$1$-CashPaid(Refunded)DuringtheYear:Interest(netof$2,$4,and$2capitalized,respectively)$110$112$125Incometaxes,net (44)(23)(22)TheaccompanyingnotesastheyrelatetoAmerenIllinoisareanintegralpartofthesefinancialstatements.
80 AMERENILLINOISCOMPANY(d/b/aAMERENILLINOIS)STATEMENTOFSTOCKHOLDERS'EQUITY(Inmillions)December31, 2014 2013 2012CommonStock$-$-$-OtherPaid-inCapitalBeginningofyear 1,9651,9651,965Capitalcontributionfromparent(Note1) 15--Otherpaid-incapital,endofyear 1,9801,9651,965PreferredStock 626262RetainedEarnings:Beginningofyear 410360408Netincome 204163144Commonstockdividends
-(110)(189)Preferredstockdividends (3)(3)(3)Retainedearnings,endofyear 611410360AccumulatedOtherComprehensiveIncome:Deferredretirementbenefitcosts,beginningofyear 111417Changeindeferredretirementbenefitcosts (3)(3)(3)Deferredretirementbenefitcosts,endofyear 81114Totalaccumulatedothercomprehensiveincome,endofyear 81114TotalStockholders'Equity$2,661$2,448$2,401TheaccompanyingnotesastheyrelatetoAmerenIllinoisareanintegralpartofthesefinancialstatements.
81 AMERENCORPORATION(Consolidated)UNIONELECTRICCOMPANY(d/b/aAmerenMissouri)
AMERENILLINOISCOMPANY(d/b/aAmerenIllinois)COMBINEDNOTESTOFINANCIALSTATEMENTSDecember31,2014NOTE1-
SUMMARY
OFSIGNIFICANTACCOUNTING POLICIES GeneralAmeren,headquarteredinSt.Louis,Missouri,isapublicutilityholdingcompanyunderPUHCA2005,administeredbytheFERC.Ameren'sprimaryassetsareits equityinterestsinitssubsidiaries,includingAmeren MissouriandAmerenIllinois.Ameren'ssubsidiariesare separate,independentlegalentitieswithseparate businesses,assets,andliabilities.DividendsonAmeren's commonstockandthepaymentofotherexpensesby Amerendependondistributionsmadetoitbyits subsidiaries.Ameren'sprincipalsubsidiariesarelisted
below.UnionElectricCompany,doingbusinessasAmerenMissouri,operatesarate-regulatedelectricgeneration, transmission,anddistributionbusinessandarate-regulatednaturalgastransmissionanddistribution businessinMissouri.AmerenMissouriwas incorporatedinMissouriin1922andissuccessortoa numberofcompanies,theoldestofwhichwas organizedin1881.Itisthelargestelectricutilityinthe stateofMissouri.Itsupplieselectricandnaturalgas servicetoa24,000-square-mileareaincentraland easternMissouri.Thisareahasanestimated populationof2.8millionandincludestheGreaterSt.
Louisarea.AmerenMissourisupplieselectricserviceto 1.2millioncustomersandnaturalgasserviceto 127,000customers.
AmerenIllinoisCompany,doingbusinessasAmeren Illinois,operatesrate-regulatedelectricandnaturalgas transmissionanddistributionbusinessesinIllinois.
AmerenIllinoiswascreatedbythemergerofCILCO andIPwithandintoCIPSin2010.CIPSwas incorporatedinIllinoisin1923andwasthesuccessor toanumberofcompanies,theoldestofwhichwas organizedin1902.AmerenIllinoissupplieselectricand naturalgasutilityservicetoportionsofcentraland southernIllinoishavinganestimatedpopulationof 3.1millioninanareaof40,000squaremiles.Ameren Illinoissupplieselectricserviceto1.2million customersandnaturalgasserviceto813,000
customers.Amerenhasvariousothersubsidiariesresponsibleforactivitiessuchastheprovisionofsharedservices.Ameren alsohasasubsidiary,ATXI,thatoperatesaFERCrate-regulatedelectrictransmissionbusiness.ATXIisdeveloping MISO-approvedelectrictransmissionprojects,includingthe IllinoisRivers,SpoonRiver,andMarkTwainprojects.
AmerenisalsopursuingreliabilityprojectswithinAmeren Missouri'sandAmerenIllinois'serviceterritoriesaswellascompetitiveelectrictransmissioninvestmentopportunities outsideoftheseterritories,includinginvestmentsoutsideof
MISO.InDecember2013,AmerencompletedthedivestitureofNewAERtoIPH.InJanuary2014,MedinaValley completeditssaleoftheElgin,GibsonCity,andGrand Towergas-firedenergycenterstoRocklandCapital.In addition,in2013,AmerenabandonedtheMeredosiaand Hutsonvilleenergycentersuponthecompletionofthe divestitureofNewAERtoIPH.Amerenhasbegunto demolishtheHutsonvilleenergycenterandexpectsto demolishtheMeredosiaenergycenterthereafter.Asa resultoftheseevents,AmerensegregatedNewAER'sand theElgin,GibsonCity,GrandTower,Meredosia,and Hutsonvilleenergycenters'operatingresults,assets,and liabilitiesandpresentedthemseparatelyasdiscontinued operationsforallperiodspresentedinthisreport.Unless otherwisestated,thesenotestothefinancialstatements excludediscontinuedoperationsforallperiodspresented.
SeeNote16-DivestitureTransactionsandDiscontinued Operationsforadditionalinformationregardingthese
transactions.ThefinancialstatementsofAmerenarepreparedonaconsolidatedbasis,andthereforeincludetheaccountsofits majority-ownedsubsidiaries.AmerenMissouriandAmeren Illinoishavenosubsidiariesandthereforetheirfinancial statementsarenotpreparedonaconsolidatedbasis.All intercompanytransactionshavebeeneliminated.Alltabular dollaramountsareinmillions,unlessotherwiseindicated.OuraccountingpoliciesconformtoGAAP.Ourfinancialstatementsreflectalladjustments(whichinclude normal,recurringadjustments)thatarenecessary,inour opinion,forafairpresentationofourresults.The preparationoffinancialstatementsinconformitywithGAAP requiresmanagementtomakecertainestimatesand assumptions.Suchestimatesandassumptionsaffect reportedamountsofassetsandliabilities,thedisclosureof contingentassetsandliabilitiesatthedatesoffinancial statements,andthereportedamountsofrevenuesand expensesduringthereportedperiods.Actualresultscould differfromthoseestimates.
RegulationWeareregulatedbytheMoPSC,theICC,andtheFERC.Wedefercertaincostsasassetspursuanttoactionsofrateregulatorsorbecauseofexpectationsthatwewillbe abletorecoversuchcostsinrateschargedtocustomers.
Wealsodefercertainamountsasliabilitiespursuantto actionsofrateregulatorsorbasedontheexpectationthat suchamountswillbereturnedtocustomersinfuturerates.
Regulatoryassetsandliabilitiesareamortizedconsistent withtheperiodofexpectedregulatorytreatment.Inaddition tothecostrecoverymechanismsdiscussedinthe PurchasedGas,Power,andFuelRate-adjustment Mechanismssectionbelow,AmerenMissouriandAmeren Illinoishaveapprovalsfromregulatorstouseothercost recoverymechanisms.AmerenMissourihasavegetation 82 managementandinfrastructureinspectioncosttracker,apensionandpostretirementbenefitcosttracker,an uncertaintaxpositionstracker,arenewableenergy standardscosttracker,asolarrebateprogramtracker,a stormrestorationcosttracker,andtheMEEIAenergy efficiencyrider.AmerenIllinois'andATXI'selectric transmissionratesaresubjecttoformularatemaking.
Additionally,AmerenIllinois'electricdistributionbusiness participatesintheperformance-basedformularatemaking processestablishedpursuanttotheIEIMA.AmerenIllinois alsohasanenvironmentalcostrider,anasbestos-related litigationrider,anenergyefficiencyrider,andabaddebt rider.SeeNote2-RateandRegulatoryMattersfor additionalinformationonregulatoryassetsandliabilities.CashandCashEquivalentsCashandcashequivalentsincludecashonhandandtemporaryinvestmentspurchasedwithanoriginalmaturityofthreemonthsorless.AllowanceforDoubtfulAccountsReceivableTheallowancefordoubtfulaccountsrepresentsourestimateofexistingaccountsreceivablethatwillultimately beuncollectible.Theallowanceiscalculatedbyapplying estimatedlossfactorstovariousclassesofoutstanding receivables,includingunbilledrevenue.Thelossfactors usedtoestimateuncollectibleaccountsarebasedupon bothhistoricalcollectionsexperienceandmanagement's estimateoffuturecollectionssuccessgiventheexistingand anticipatedfuturecollectionsenvironment.AmerenIllinois hasaratemechanismthatadjustsratesfornetwrite-offsof customeraccountsreceivableaboveorbelowthosebeing collectedinrates.MaterialsandSuppliesMaterialsandsuppliesarerecordedatthelowerofcostormarket.Costisdeterminedbytheaverage-costmethod.Materialsandsuppliesarecapitalizedasinventorywhenpurchasedandthenexpensedorcapitalizedasplantassetswheninstalled,asappropriate.ThefollowingtablepresentsabreakdownofmaterialsandsuppliesforeachoftheAmeren CompaniesatDecember31,2014and2013:AmerenMissouriAmerenIllinoisAmeren 2014 Fuel (a)......................................................................$134$-$134Gasstoredunderground
........................................................16111127Othermaterialsandsupplies
....................................................19766263$347$177$524 2013 Fuel (a)......................................................................$144$-$144Gasstoredunderground
........................................................17110127Othermaterialsandsupplies....................................................19164255$352$174$526(a)Consistsofcoal,oil,andpropane.PropertyandPlant,NetWecapitalizethecostofadditionstoandbettermentsofunitsofpropertyandplant.Thecostincludeslabor,material,applicabletaxes,andoverhead.Anallowancefor fundsusedduringconstruction,asdiscussedbelow,isalso capitalizedasacostofourrate-regulatedassets.
Maintenanceexpenditures,includingnuclearrefuelingand maintenanceoutages,areexpensedasincurred.Whenunits ofdepreciablepropertyareretired,theoriginalcosts,less salvagevalues,arechargedtoaccumulateddepreciation.If environmentalexpendituresarerelatedtoassetscurrently inuse,asinthecaseoftheinstallationofpollutioncontrol equipment,thecostiscapitalizedanddepreciatedoverthe expectedlifeoftheasset.SeeAssetRetirementObligations belowandNote3-PropertyandPlant,Net,foradditional
information.
DepreciationDepreciationisprovidedovertheestimatedlivesofthevariousclassesofdepreciablepropertybyapplying compositeratesonastraight-linebasistothecostbasisof suchproperty.Theprovisionfordepreciationforthe AmerenCompaniesin2014,2013,and2012rangedfrom 3%to4%oftheaveragedepreciablecost.AllowanceforFundsUsedDuringConstructionWecapitalizeallowanceforfundsusedduringconstruction,orthecostofborrowedfundsandthecostofequityfunds(preferredandcommonstockholders'equity) applicabletorate-regulatedconstructionexpenditures,in accordancewiththeutilityindustry'saccountingpractice.
Allowanceforfundsusedduringconstructiondoesnot representacurrentsourceofcashfunds.Thisaccounting practiceoffsetstheeffectonearningsofthecostof 83 financingduringconstruction,andittreatssuchfinancingcostsinthesamemannerasconstructionchargesforlabor andmaterials.Underacceptedratemakingpractice,cashrecoveryofallowanceforfundsusedduringconstructionandother constructioncostsoccurswhencompletedprojectsare placedinserviceandreflectedincustomerrates.The followingtablepresentstheannualallowanceforfunds usedduringconstructionratesthatwereusedduring2014, 2013,and2012:201420132012AmerenMissouri
................
7%8%8%AmerenIllinois
..................
2%8%9%GoodwillGoodwillrepresentstheexcessofthepurchasepriceofanacquisitionoverthefairvalueofthenetassets acquired.AmerenandAmerenIllinoishadgoodwillof
$411millionatDecember31,2014,and2013.AllofAmeren'sandAmerenIllinois'goodwillatDecember31,2014and2013,wasassignedtotheAmeren Illinoisreportingunit,whichisalsotheAmerenIllinois reportablesegment.WeevaluategoodwillforimpairmentasofOctober31ofeachyear,ormorefrequentlyifeventsand circumstancesindicatethattheassetmightbeimpaired.
AmerenandAmerenIllinoisappliedaqualitativegoodwill evaluationmodelfortheirannualgoodwillimpairmenttest conductedasofOctober31,2014.Basedontheresultsof Ameren'sandAmerenIllinois'qualitativeassessment, AmerenandAmerenIllinoisbelieveitwasmorelikelythan notthatthefairvalueoftheAmerenIllinoisreportingunit exceededitscarryingvalueasofOctober31,2014, indicatingnoimpairmentofAmeren'sorAmerenIllinois' goodwill.Thefollowingfactors,amongothers,were consideredbyAmerenandAmerenIllinoiswhenassessing whetheritwasmorelikelythannotthatthefairvalueofthe AmerenIllinoisreportingunitexceededitscarryingvalue fortheOctober31,2014,test:
macroeconomicconditions,includingthoseconditionswithinAmerenIllinois'serviceterritory; pendingratecaseoutcomesandprojectionsoffuture ratecaseoutcomes; changesinlawsandpotentiallawchanges; observableindustrymarketmultiples; achievementofIEIMAperformancemetricsandthe yieldof30-yearUnitedStatesTreasurybonds; apotentialreductionintheFERC-allowedreturnon equityrelatedtotransmissionservices;and actualandforecastedfinancialperformance.ThegoodwillassignedtotheAmerenIllinoisreportingunitontheDecember31,2014balancesheetsofAmeren andAmerenIllinoishadnoaccumulatedgoodwill impairmentlosses.AmerenandAmerenIllinoiswill continuetomonitortheactualandforecastedoperatingresults,cashflows,marketcapitalization,andobservable industrymarketmultiplesoftheAmerenIllinoisreporting unitforsignsofpossibledeclinesinestimatedfairvalue andpotentialgoodwillimpairment.ImpairmentofLong-livedAssetsWeevaluatelong-livedassetsclassifiedasheldandusedforimpairmentwheneventsorchangesincircumstancesindicatethatthecarryingvalueofsuch assetsmaynotberecoverable.Whetheranimpairmenthas occurredisdeterminedbycomparingtheestimated undiscountedcashflowsattributabletotheassetstothe carryingvalueoftheassets.Ifthecarryingvalueexceeds theundiscountedcashflows,werecognizeanimpairment chargeequaltotheamountbywhichthecarryingvalue exceedstheestimatedfairvalueoftheassets.Intheperiod inwhichwedetermineanassetmeetsheldforsalecriteria, werecordanimpairmentchargetotheextentthebook valueexceedsitsestimatedfairvaluelesscosttosell.
InvestmentsAmerenandAmerenMissourirecordinvestmentsheldinAmerenMissouri'snucleardecommissioningtrustfundatfairvalue.Lossesonassetsinthetrustfundcouldresult inhigherfundingrequirementsfordecommissioningcosts, whichAmerenMissouribelieveswouldberecoveredin electricratespaidbyitscustomers.Accordingly,Ameren andAmerenMissourirecognizearegulatoryassetontheir balancesheetsforlossesoninvestmentsheldinthenuclear decommissioningtrustfund.Inaddition,Amerenand AmerenMissourirecognizearegulatoryliabilityontheir balancesheetsforgainsoninvestmentsheldinthenuclear decommissioningtrustfund.AsofDecember31,2014,the nucleardecommissioningtrustfundhadcumulativegains.
SeeNote9-NuclearDecommissioningTrustFund Investmentsforadditionalinformation.EnvironmentalCostsLiabilitiesforenvironmentalcostsarerecordedonanundiscountedbasiswhenitisprobablethataliabilityhasbeenincurredandtheamountoftheliabilitycanbe reasonablyestimated.Costsareexpensedordeferredasa regulatoryassetwhenitisexpectedthatthecostswillbe recoveredfromcustomersinfuturerates.AssetRetirementObligationsWearerequiredtorecordtheestimatedfairvalueoflegalobligationsassociatedwiththeretirementoftangiblelong-livedassetsintheperiodinwhichtheliabilitiesare incurredandtocapitalizeacorrespondingamountaspart ofthebookvalueoftherelatedlong-livedasset.In subsequentperiods,wearerequiredtomakeadjustments toAROsbasedonchangesintheestimatedfairvaluesof theobligations.Correspondingincreasesinassetbook valuesaredepreciatedovertheremainingusefullifeofthe relatedasset.Uncertaintiesastotheprobability,timing,or amountofcashexpendituresassociatedwithAROsaffect 84 ourestimatesoffairvalue.AmerenandAmerenMissourihaverecordedAROsforretirementcostsassociatedwith AmerenMissouri'sCallawayenergycenter decommissioningcosts,asbestosremoval,CCRfacilities, andriverstructures.Also,AmerenandAmerenIllinoishave recordedAROsforretirementcostsassociatedwith asbestosremoval.Inaddition,Ameren,AmerenMissouri, andAmerenIllinoishaverecordedAROsforthedisposalof certaintransformers.AmerenandAmerenMissouriare evaluatingthepotentialeffectoftheEPA'snewrule regardingthemanagementanddisposalofCCRontheir AROsassociatedwithashponds.SeeNote15-CommitmentsandContingencies.Assetremovalcostsaccruedbyourrate-regulatedoperationsthatdonotconstitutelegalobligationsare classifiedasregulatoryliabilities.SeeNote2-Rateand RegulatoryMatters.ThefollowingtableprovidesareconciliationofthebeginningandendingcarryingamountofAROsforthe yearsendedDecember31,2014and2013:
Ameren Missouri AmerenIllinoisAmerenBalanceatDecember31,2012....$346$3$349Liabilitiessettled.............(1)(a)(1)Accretionin2013 (b)...........19(a)19Changeinestimates (c).........2(a)2BalanceatDecember31,2013....$366$3 (d)$369Liabilitiesincurred
............2-2Liabilitiessettled
.............(2)(a)(2)Accretionin2014 (b)...........21(a)21Changeinestimates (c)(e)........246BalanceatDecember31,2014
....$389$7 (d)$396(a)Lessthan$1million.(b)AccretionexpensewasrecordedasanincreasetoregulatoryassetsatAmerenMissouriandAmerenIllinois.(c)AmerenMissourichangeditsfairvalueestimatesforasbestosremovalin2013and2014andforcertainCCRfacilitiesin2013.(d)Includedin"Otherdeferredcreditsandliabilities"onthebalance sheet.(e)AmerenIllinoischangeditsfairvalueestimateforasbestosremovalin2014.AmerenandAmerenMissourihavenucleardecommissioningtrustfundassetsof$549millionand$494millionasofDecember31,2014and2013, respectively,whicharefordecommissioningofthe Callawayenergycenter.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsforadditionalinformationonthe AROsrelatedtotheabandonedMeredosiaandHutsonville energycenters,whicharepresentedasdiscontinued operationsandthereforenotincludedinthetableabove.NoncontrollingInterestsAsofDecember31,2014and2013,Ameren'snoncontrollinginterestsincludedthepreferredstockofAmerenMissouriandAmerenIllinois.OperatingRevenueTheAmerenCompaniesrecordoperatingrevenueforelectricornaturalgasservicewhenitisdeliveredto customers.Weaccrueanestimateofelectricandnatural gasrevenuesforservicerenderedbutunbilledattheendof eachaccountingperiod.AmerenIllinoisparticipatesintheperformance-basedformularatemakingframeworkpursuanttotheIEIMA.The IEIMAprovidesforanannualreconciliationofAmeren Illinois'electricdeliveryservicerevenuerequirement.Asof eachbalancesheetdate,AmerenIllinoisrecordsits estimateoftheelectricdeliveryservicerevenueeffect resultingfromthereconciliationoftherevenuerequirement necessarytoreflecttheactualrecoverablecostsincurred forthatyearwiththerevenuerequirementthatwas reflectedincustomerratesforthatyear.Ifthecurrent year'srevenuerequirementisgreaterthantherevenue requirementreflectedinthatyear'scustomerrates,an increasetoelectricoperatingrevenueswithanoffsettoa regulatoryassetisrecordedtoreflecttheexpectedrecovery ofthoseadditionalcostsfromcustomerswithinthenext twoyears.Ifthecurrentyear'srevenuerequirementisless thantherevenuerequirementreflectedinthatyear's customerrates,areductiontoelectricoperatingrevenues withanoffsettoaregulatoryliabilityisrecordedtoreflect theexpectedrefundtocustomerswithinthenexttwoyears.
SeeNote2-RateandRegulatoryMattersforinformation regardingAmerenIllinois'revenuerequirement reconciliationpursuanttotheIEIMA.SimilartotheIEIMAprocessdescribedabove,AmerenIllinoisandATXIrecordtheimpactofarevenue requirementreconciliationforeachcompany'selectric transmissionjurisdiction,pursuanttoFERC-approvedrate
treatment.AccountingforMISOTransactionsMISO-relatedpurchaseandsaletransactionsarerecordedbyAmeren,AmerenMissouri,andAmerenIllinoisusingsettlementinformationprovidedbyMISO.Ameren Missourirecordsthesepurchaseandsaletransactionsona nethourlyposition.AmerenMissourirecordsnetpurchases inasinglehourin"OperatingExpenses-Purchased power"andnetsalesinasinglehourin"Operating Revenues-Electric"initsstatementofincome.Ameren Illinoisrecordsnetpurchasesin"OperatingExpenses-Purchasedpower"initsstatementofincometoreflectallof itsMISOtransactionsrelatingtotheprocurementofpower foritscustomers.Onoccasion,AmerenMissouri'sand AmerenIllinois'prior-periodtransactionswillberesettled outsidetheroutinesettlementprocessbecauseofachange inMISO'starifforamaterialinterpretationthereof.Inthese cases,AmerenMissouriandAmerenIllinoisrecognize expensesassociatedwithresettlementsoncethe resettlementisprobableandtheresettlementamountcan beestimatedandrecognizerevenuesoncetheresettlement amountisreceived.
85 NuclearFuelAmerenMissouri'scostofnuclearfueliscapitalizedandthenamortizedtofuelexpenseonaunit-of-productionbasis.Thecostischargedto"OperatingExpenses-Fuel"in thestatementofincome.PurchasedGas,PowerandFuelRate-adjustment MechanismsAmerenMissouriandAmerenIllinoishavevariousrate-adjustmentmechanismsinplacethatprovideforthe recoveryofpurchasednaturalgasandelectricfueland purchasedpowercostswithoutatraditionalratecase proceeding.SeeNote2-RateandRegulatoryMattersfor theregulatoryassetsandliabilitiesrecordedat December31,2014and2013,relatedtotherate-adjustmentmechanismsdiscussedbelow.InAmerenMissouri'sandAmerenIllinois'naturalgasutilityjurisdictions,changesinnaturalgascostsare reflectedinbillingstotheirnaturalgasutilitycustomers throughPGAclauses.Thedifferencebetweenactualnatural gascostsandcostsbilledtocustomersinagivenperiodis deferredasaregulatoryassetorliability.Thedeferred amountiseitherbilledorrefundedtonaturalgasutility customersinasubsequentperiod.InAmerenIllinois'retailelectricutilityjurisdiction,changesinpurchasedpowerandtransmissionservice costsarereflectedinbillingstoitselectricutilitycustomers throughpass-throughrate-adjustmentclauses.The differencebetweenactualpurchasedpowerand transmissionservicecostsandcostsbilledtocustomersin agivenperiodisdeferredasaregulatoryassetorliability.
Thedeferredamountiseitherbilledorrefundedtoelectric utilitycustomersinasubsequentperiod.AmerenMissourihasaFACthatallowsanadjustmentofelectricratesthreetimesperyearforapass-throughto customersof95%ofchangesinfuelandpurchasedpower costs,includingtransportationchargesandrevenues,netof off-systemsales,greaterorlessthantheamountsetin baserates,subjecttoMoPSCprudencereview.The differencebetweentheactualamountsincurredforthese itemsandtheamountsrecoveredfromAmerenMissouri customers'baseratesisdeferredasaregulatoryassetor liability.Thedeferredamountsareeitherbilledorrefunded toelectricutilitycustomersinasubsequentperiod.Stock-basedCompensationStock-basedcompensationcostismeasuredatthegrantdatebasedonthefairvalueoftheaward,netofanassumedforfeiturerate.Amerenrecognizesas compensationexpensetheestimatedfairvalueofstock-basedcompensationonastraight-linebasisoverthe requisiteserviceperiod.SeeNote12-Stock-based Compensationforadditionalinformation.ExciseTaxesAmerenMissouriandAmerenIllinoiscollectcertainexcisetaxesfromcustomersthatareleviedonthesaleordistributionofnaturalgasandelectricity.ExcisetaxesareleviedonAmerenMissouri'selectricandnaturalgas businessesandonAmerenIllinois'naturalgasbusiness andarerecordedgrossin"OperatingRevenues-Electric,"
"OperatingRevenues-Gas,"and"OperatingExpenses-Taxesotherthanincometaxes"onthestatementofincome orthestatementofincomeandcomprehensiveincome.
ExcisetaxesforelectricserviceinIllinoisareleviedonthe customerandarethereforenotincludedinAmerenIllinois' revenuesandexpenses.Theyareinsteadincludedin"Taxes accrued"onthebalancesheet.Thefollowingtablepresents excisetaxesrecordedin"OperatingRevenues-Electric,"
"OperatingRevenues-Gas,"and"OperatingExpenses-Taxesotherthanincometaxes"fortheyearsended December31,2014,2013,and2012:201420132012AmerenMissouri
..........$151$152$139AmerenIllinois
............
646154 Ameren.................$215$213$193UnamortizedDebtDiscounts,Premiums,andIssuance
CostsLong-termdebtdiscounts,premiums,andissuancecostsareamortizedoverthelivesoftherelatedissuances.
Creditfacilityfeesareamortizedoverthecreditfacilityterm.IncomeTaxesAmerenusesanassetandliabilityapproachforitsfinancialaccountingandreportingofincometaxes,inaccordancewithauthoritativeaccountingguidance.
Deferredtaxassetsandliabilitiesarerecognizedfor transactionsthataretreateddifferentlyforfinancial reportingandincometaxreturnpurposes.Thesedeferred taxassetsandliabilitiesarebasedonstatutorytaxrates.Werecognizethatregulatorswillprobablyreducefuturerevenuesfordeferredtaxliabilitiesthatwereinitially recordedatratesinexcessofthecurrentstatutoryrate.
Therefore,reductionsindeferredtaxliabilitiesthatwere recordedbecauseofdecreasesinthestatutoryratehave beencreditedtoaregulatoryliability.Aregulatoryassethas beenestablishedtorecognizetheprobablerecovery throughfuturecustomerratesoftaxbenefitsrelatedtothe equitycomponentofallowanceforfundsusedduring construction,aswellastheeffectsoftaxratechanges.Investmenttaxcreditsusedontaxreturnsforprioryearshavebeendeferredasanon-currentliability.The creditsarebeingamortizedovertheusefullivesofthe relatedinvestment.Deferredincometaxeswererecorded onthetemporarydifferencerepresentedbythedeferred investmenttaxcreditsandacorrespondingregulatory liability.Thisrecognizestheexpectedreductioninratesfor futurelowerincometaxesassociatedwiththeamortization oftheinvestmenttaxcredits.SeeNote13-IncomeTaxes.AmerenMissouri,AmerenIllinois,andalltheotherAmerensubsidiarycompaniesarepartiestoataxallocation agreementwithAmeren(parent)thatprovidesforthe 86 allocationofconsolidatedtaxliabilities.Thetaxallocationagreementspecifiesthateachpartybeallocatedanamount oftaxsimilartothatwhichwouldbeowedorrefundedhad thepartybeenseparatelysubjecttotax.Anynetbenefitattributabletotheparentisreallocatedtotheotherparties.
Thisreallocationistreatedasacapitalcontributiontothe partyreceivingthebenefit.EarningsperShareBasicearningspershareiscomputedbydividingnetincomeattributabletoAmerenCorporationcommonstockholdersbytheweighted-averagenumberofcommonsharesoutstandingduringtheperiod.Dilutedearningspershareiscomputedby dividingnetincomeattributabletocommonstockholdersbythedilutedweighted-averagenumberofcommonshares outstandingduringtheperiod.Dilutedearningspersharereflectsthepotentialdilutionthatwouldoccurifcertainstock-based performanceshareunitsweresettled.ThefollowingtablepresentsAmeren'sbasicanddilutedearningspersharecalculationsandreconcilestheweighted-averagenumberofcommonsharesoutstandingtothedilutedweighted-averagenumberofcommonsharesoutstandingfor theyearsendedDecember31,2014,2013,and2012:201420132012Netincome(loss)attributabletoAmerenCorporation:Continuingoperations
.................................................................$587$512$516Discontinuedoperations
................................................................
(1)(223)(1,490)Netincome(loss)attributabletoAmerenCorporation
...........................................$586$289$(974)Averagecommonsharesoutstanding-basic
.................................................
242.6242.6242.6Assumedsettlementofperformanceshareunits
...............................................
1.81.90.4Averagecommonsharesoutstanding-diluted
................................................
244.4244.5243.0Earnings(loss)percommonshare-basic:Continuingoperations
.................................................................$2.42$2.11$2.13Discontinuedoperations
................................................................
-(0.92)(6.14)Earnings(loss)percommonshare-basic
...................................................$2.42$1.19$(4.01)Earnings(loss)percommonshare-diluted:Continuingoperations
.................................................................$2.40$2.10$2.13Discontinuedoperations
................................................................
-(0.92)(6.14)Earnings(loss)percommonshare-diluted
..................................................$2.40$1.18$(4.01)TherewerenopotentiallydilutivesecuritiesexcludedfromthedilutedearningspersharecalculationsfortheyearsendedDecember31,2014,2013,and2012.CapitalContributionsandReturnofCapitalIn2014,AmerenMissouriandAmerenIllinoisreceivedcashcapitalcontributionsof$215millionand$15million,respectively,fromAmeren(parent)asaresultofthetax allocationagreement.Additionally,asofDecember31, 2014,AmerenMissouriaccrueda$9millioncapital contributionrelatedtothesameagreement.In2014, AmerenMissourireturnedcapitalof$215milliontoAmeren (parent).SupplementalCashFlowInformationThefollowingtablepresentsadditionalinformationregardingAmeren'sconsolidatedstatementofcashflows fortheyearsendedDecember31,2014,2013,and2012:201420132012Cashpaid(refunded)duringtheyear:
InterestContinuingoperations (a)..........$333$362$384Discontinuedoperations (b)........-3149$333$393$433Incometaxes,netContinuingOperations
...........$(41)$116$10DiscontinuedOperations
.........14(108)(9)$(27)$8$1(a)Netof$18million,$20million,and$17millioncapitalized, respectively.(b)Netof$-million,$17million,and$13millioncapitalized, respectively.SeeNote3-PropertyandPlant,Net,forinformationonaccruedcapitalexpenditures.
87 AccountingChangesandOtherMattersThefollowingisasummaryofrecentlyadoptedauthoritativeaccountingguidance,aswellasguidanceissuedbutnotyetadopted,thatcouldaffecttheAmeren
Companies.PresentationofanUnrecognizedTaxBenefitIn2013,FASBissuedadditionalauthoritativeaccountingguidance,whichbecameeffectivein2014,toprovideclarityforthefinancialstatementpresentationofan unrecognizedtaxbenefitwhenanetoperatingloss carryforward,asimilartaxloss,orataxcreditcarryforward exists.Theobjectiveofthisguidanceistoeliminate diversityinpracticerelatedtothepresentationofcertain unrecognizedtaxbenefits.Itrequiresentitiestopresentan unrecognizedtaxbenefitasareductiontoadeferredtax assetforanetoperatinglosscarryforward,asimilartax loss,orataxcreditcarryforward.Previously,unrecognized taxbenefitswererecordedin"Otherdeferredcreditsand liabilities"onAmeren's,AmerenMissouri's,andAmeren Illinois'respectivebalancesheets.Beginningin2014, unrecognizedtaxbenefitsarerecordedasareductiontothe deferredtaxassetsfornetoperatinglossesandtaxcredit carryforwardswithin"Accumulateddeferredincometaxes, net"onourbalancesheets.Unrecognizedtaxbenefitsthat exceedthesecarryforwardsarerecordedin"Otherdeferred creditsandliabilities"ontherespectivebalancesheets.At December31,2014,unrecognizedtaxbenefitsof
$52million,$-million,and$-millionwererecordedin "Accumulateddeferredincometaxes,net"onAmeren's, AmerenMissouri's,andAmerenIllinois'balancesheets, respectively.AtDecember31,2013,unrecognizedtax benefitsof$84million,$15million,and$-million previouslyrecordedin"Otherdeferredcreditsand liabilities"onAmeren's,AmerenMissouri's,andAmeren Illinois'respectivebalancesheetswerereclassifiedto "Accumulateddeferredincometaxes,net"forcomparative purposes.Theimplementationoftheadditionalauthoritative accountingguidancedidnotaffecttheAmerenCompanies' resultsofoperationsorliquidity,asthisguidanceis presentation-relatedonly.ReportingDiscontinuedOperationsandDisclosuresofComponentsofanEntityIn2014,FASBissuedauthoritativeaccountingguidancethatchangesthecriteriaforreportingand qualifyingfordiscontinuedoperations.Underthenew guidance,acomponentofanentity,oragroupof componentsofanentity,thateithermeetsthecriteriatobe classifiedasheldforsaleorisdisposedofbysaleor otherwiseisrequiredtobereportedindiscontinued operationsifthedisposalrepresentsastrategicshiftthat had,orwillhave,amajoreffectonanentity'soperations andfinancialresults.Theguidanceincludesexpanded disclosurerequirementsfordiscontinuedoperationsand additionaldisclosuresaboutadisposalofanindividually significantcomponentofanentitythatdoesnotqualifyfor discontinuedoperationspresentation.TheguidanceiseffectivefortheAmerenCompaniesinthefirstquarterof 2015forcomponentsthatareclassifiedasheldforsaleor disposedofonorafterJanuary1,2015.Earlyadoptionis permitted,butonlyfordisposalsorclassificationsasheld forsalethathavenotbeenreportedinfinancialstatements previouslyissued.Therefore,Ameren'sexisting discontinuedoperationsarenotsubjecttothenew disclosurerequirements.Theguidancewillnotaffectthe AmerenCompanies'resultsofoperations,financial position,orliquidity,asthisguidanceispresentation-relatedonly.RevenuefromContractswithCustomersIn2014,FASBissuedauthoritativeaccountingguidancetoclarifytheprinciplesforrecognizingrevenueandtodevelopacommonrevenuestandardforGAAP.The guidancerequiresanentitytorecognizeanamountof revenueforthetransferofpromisedgoodsorservicesto customersthatreflectstheconsiderationwhichtheentity expectstobeentitledtoinexchangeforthosegoodsor services.Theguidancealsorequiresadditionaldisclosures toenableusersoffinancialstatementstounderstandthe nature,amount,timing,anduncertaintyofrevenueand cashflowsarisingfromcontractswithcustomers.The guidancewillbeeffectivefortheAmerenCompaniesinthe firstquarterof2017.Theguidanceallowsentitiestochoose oneoftwotransitionmethods,eitherbyapplyingthe guidanceretrospectivelytoeachreportingperiodpresented orbyrecordingacumulativeeffectadjustmenttoretained earningsintheperiodofinitialadoption.TheAmeren Companiesarecurrentlyassessingtheimpactsofthis guidanceontheirresultsofoperations,financialposition, andliquidity,aswellasthetransitionmethodthattheywill usetoadopttheguidance.NOTE2-RATEANDREGULATORYMATTERSBelowisasummaryofsignificantregulatoryproceedingsandrelatedlawsuits.Weareunabletopredicttheultimateoutcomeofthesematters,thetimingofthe finaldecisionsofthevariousagenciesandcourts,orthe effectonourresultsofoperations,financialposition,or
liquidity.
Missouri2014ElectricRateCaseInJuly2014,AmerenMissourifiledarequestwiththeMoPSCseekingapprovaltoincreaseitsannualrevenuesforelectricservice.Therequest,asamendedinFebruary2015, seeksanannualrevenueincreaseofapproximately
$190million.Theamendedraterequestseeksrecoveryof increasednetenergycostsandrebatesprovidedfor customer-installedsolargeneration,aswellasrecoveryof, andareturnon,electricinfrastructureinvestments.
Approximately$100millionoftheamendedrequestrelates toanincreaseinnetenergycostsabovethelevelsincluded inbaseratesauthorizedbytheMoPSCinitsDecember 2012electricrateorder.Absentinitiationofthisgeneralrate 88 proceeding,95%ofthosecostswouldhavebeenreflectedinrateadjustmentsimplementedunderAmerenMissouri's existingFAC.Theamendedelectricrateincreaserequestis basedona10.4%returnoncommonequity,acapital structurecomposedof51.8%commonequity,anelectric ratebaseof$7billion,andatestyearendedMarch31, 2014,withcertainproformaadjustmentsthroughtrue-up datesofDecember31,2014andJanuary1,2015.AmerenMissouri'sraterequestalsoseekscontinueduseoftheFACandtheregulatorytrackingmechanismsfor stormcosts,vegetationmanagementandinfrastructure inspectioncosts,pensionandpostretirementbenefits,and uncertainincometaxpositionsthattheMoPSCauthorized inearlierelectricrateorders.InOctober2014,aspartofthisratecaseproceeding,theMoOPC,theMIEC,andotherpartiesfiledarateshift requestthatseekstoreduceNoranda'selectricrateswith anoffsettingincreaseinelectricratesforAmerenMissouri's othercustomers.AmerenMissourisupplieselectricityto Noranda'saluminumsmelterinsoutheastMissouriundera 15-yearagreement,thatissubjecttoterminationasearlyas 2020uponatleastfiveyearsnoticebyeitherparty.
TerminationoftheagreementbyAmerenMissouriwould requireMoPSCapproval.InFebruary2015,theMoPSCstaffrecommendedanincreasetoAmerenMissouri'sannualrevenuesof
$89millionbasedonareturnonequityof9.25%.In addition,theMoPSCstaffopposedthecontinueduseofthe regulatorytrackingmechanismsforstormcostsand vegetationmanagementandinfrastructureinspectioncosts.
TheMoPSCstaffalsoopposedtherecoveryof$36million infixedcostsnotpreviouslyrecoveredassociatedwiththe accountingauthorityorderdiscussedbelow.TheMoPSCproceedingsrelatingtotheproposedelectricservicerateincreaseareongoingandadecisionby theMoPSCisexpectedbyMay2015,withnewrates effectivebyJune2015.AmerenMissouricannotpredictthe levelofanyelectricserviceratechangetheMoPSCmay approveorwhetheranyrateincreasethatmayeventuallybe approvedwillbesufficientforAmerenMissouritorecover itscostsandtoearnareasonablereturnonitsinvestments whentheratechangesgointoeffect.FACPrudenceReviewandAccountingAuthorityOrderInJuly2013,theMoPSCissuedanorderwithrespecttoitsreviewofAmerenMissouri'sFACcalculationfortheperiodfromOctober1,2009,toMay31,2011.Inthis order,theMoPSCruledthatAmerenMissourishouldhave includedintheFACcalculationallrevenuesandcosts associatedwithcertainlong-termpartialrequirementssales thatweremadebyAmerenMissouribecauseofthelossof Noranda'sloadcausedbyasevereicestormin2009.Asa resultoftheorder,in2013AmerenMissourirecordeda pretaxchargetoearningsof$26million,including
$1millionforinterest,foritsestimatedobligationtorefund toitselectriccustomerstheearningsassociatedwiththese salespreviouslyrecognizedfortheperiodfromOctober1,2009,toMay31,2011.AmerenMissourirecordedthe chargeto"OperatingRevenues-Electric"andtherelated interestto"InterestCharges"withacorrespondingoffsetto "Currentregulatoryliabilities."Nosimilarrevenueswere excludedfromFACcalculationsafterMay2011.Separately,inJuly2011,AmerenMissourifiledarequestwiththeMoPSCforanaccountingauthorityorder thatwouldallowAmerenMissouritodeferfixedcosts totaling$36millionduringthetimeperiodofMarch1, 2009,toMay31,2011,notpreviouslyrecoveredfrom Norandaasaresultofthelossofloadcausedbythesevere 2009icestorm,forpotentialrecoveryinafutureelectric ratecase.InNovember2013,theMoPSCissuedan accountingauthorityorderthatallowedAmerenMissourito seekrecoveryofthesefixedcostsinanelectricratecase.
AmerenMissouri'sJuly2014electricratecasefiling requestedrecoveryofthesefixedcostsoverfiveyears.The MIECandtheMoOPCfiledappealsoftheMoPSC's November2013accountingauthorityorderwiththe MissouriCourtofAppeals,WesternDistrict.InJanuary 2015,theMissouriCourtofAppeals,WesternDistrict upheldtheMoPSC'sorder.AmerenMissourihasnot recordedanypotentialrevenueassociatedwiththis accountingauthorityorder.MEEIAFilingInDecember2014,AmerenMissourifiledanenergyefficiencyplanwiththeMoPSCundertheMEEIA.Thisfilingproposedathree-yearplanthatincludesaportfolioof customerenergyefficiencyprogramsalongwithacost recoverymechanism.Iftheplanisapproved,beginningin January2016,AmerenMissouriintendstoinvest
$135millionoverthreeyearsintheproposedcustomer energyefficiencyprograms.AmerenMissourirequested continueduseofaMEEIAriderthatallowsittocollectfrom orrefundtocustomersanydifferenceintheactualamounts incurredandtheamountscollectedfromcustomersforthe MEEIAprogramcostsanditslostrevenues.Inaddition, AmerenMissourirequestedincentivestoearnadditional revenuesbyachievingcertainenergyefficiencygoals, including$25millionif100%ofitsenergyefficiencygoals areachievedduringthethree-yearperiod.AmerenMissouri mustachieveatleast70%ofitsenergyefficiencygoals beforeitearnsanyincentiveaward.
Illinois IEIMAUndertheprovisionsoftheIEIMA,AmerenIllinois'electricdeliveryserviceratesaresubjecttoanannualrevenuerequirementreconciliationtoitsactualcosts.
Throughouteachyear,AmerenIllinoisrecordsaregulatory assetoraregulatoryliabilityandacorrespondingincrease ordecreasetooperatingrevenuesforanydifferences betweentherevenuerequirementreflectedincustomer ratesforthatyearanditsestimateoftheprobableincrease ordecreaseintherevenuerequirementexpectedto ultimatelybeapprovedbytheICCbasedonthatyear's 89 actualcostsincurred.AsofDecember31,2014,AmerenIllinoishadrecordedregulatoryassetsof$101millionand
$65milliontoreflectitsexpected2014and2013revenue requirementreconciliationadjustments,respectively,with interest.AsofDecember31,2013,AmerenIllinoishad recordeda$65millionregulatoryliabilitytoreflectits2012 revenuerequirementreconciliationadjustment,whichwas refunded,withinterest,tocustomersduring2014.InDecember2014,theICCissuedanorderinAmerenIllinois'annualupdatefilingapprovinga$204million increaseinAmerenIllinois'electricdeliveryservicerevenue requirementbeginninginJanuary2015.Thisupdate reflectsanincreasetotheannualformularatebasedon 2013actualcostsandexpectednetplantadditionsfor 2014,anincreasetoincludethe2013revenuerequirement reconciliationadjustment,whichwasrecordedasa regulatoryassetatDecember31,2014,andanincrease resultingfromtheconclusionofthe2014refundto customersforthe2012revenuerequirementreconciliation
adjustment.InFebruary2014,AmerenIllinoisfiledanappealoftheICC'sDecember2013annualformularateordertothe AppellateCourtoftheFourthDistrictofIllinoisregarding theratetreatmentofaccumulateddeferredincometaxes relatedtothetransferofformerAmerenMissourielectric assetslocatedinIllinoistoAmerenIllinois.AmerenIllinois withdrewthisappealinFebruary2015.IntheDecember2013order,theICCdisallowed,inpart,therecoveryfromcustomersofthedebtpremium costspaidbyAmerenIllinoisforatenderofferinAugust 2012torepurchaseoutstandingseniorsecurednotes.Asa resultoftheICCorder,in2013,AmerenandAmerenIllinois eachrecordedapretaxchargetoearningsof$15million relatingtothepartialdisallowanceofthedebtpremium costs.IntheDecember2014orderdiscussedabove,the ICCallowedpartialrecoveryfromcustomersofcertain previouslydisalloweddebtpremiumcosts.Accordingly,in 2014,AmerenandAmerenIllinoiseachrecordedapretax increasetoearningsof$11milliontoreflectthepartial recoveryofthedebtpremiumcosts.AmerenandAmeren Illinoisrecordedtheeffectsofbothordersto"Interest charges"withacorrespondingoffsetto"Regulatory
assets."2015NaturalGasDeliveryServiceRateCaseInJanuary2015,AmerenIllinoisfiledarequestwiththeICCseekingapprovaltoincreaseitsannualrevenuesfornaturalgasdeliveryserviceby$53million.Therequestwas basedona10.25%returnoncommonequity,acapital structurecomposedof50%commonequity,andarate baseof$1.2billion.Inanattempttoreduceregulatorylag, AmerenIllinoisuseda2016futuretestyearinthis proceeding.Includedintherequestwasaproposalto implementadecouplingridermechanismforresidentialand smallnonresidentialcustomers.Thedecouplingriderwould ensurethatchangesinnaturalgassalesvolumesdonot affectAmerenIllinois'annualnaturalgasrevenuesforthese rateclasses.AdecisionbytheICCinthisproceedingisrequiredbyDecember2015,withnewratesexpectedtobeeffectivein January2016.AmerenIllinoiscannotpredictthelevelof anydeliveryserviceratechangestheICCmayapprove,or whethertheICCwillapprovethedecouplingrider,or whetheranyratechangesthatmayeventuallybeapproved willbesufficienttoenableAmerenIllinoistorecoverits costsandtoearnareasonablereturnoninvestmentswhen theratechangesgointoeffect.2013NaturalGasDeliveryServiceRateOrderInDecember2013,theICCissuedarateorderthatapprovedanincreaseinrevenuesforAmerenIllinois'naturalgasdeliveryserviceof$32million.Therevenue increasewasbasedona9.1%returnoncommonequity,a capitalstructurecomposedof51.7%commonequity,anda ratebaseof$1.1billion.Therateorderwasbasedona 2014futuretestyear.Theratechangesbecameeffective January1,2014.InMarch2014,AmerenIllinoisfiledwith theAppellateCourtoftheFourthDistrictofIllinoisan appealoftheallowedreturnoncommonequityincludedin theICC'sorderandalsoappealedtheratetreatmentof accumulateddeferredincometaxesrelatedtothetransfer offormerAmerenMissourinaturalgasassetslocatedin IllinoistoAmerenIllinois.AmerenIllinoissoughta10.4%
returnoncommonequityinthisratecase.InFebruary 2015,AmerenIllinoiswithdrewitsappealsolelyasitrelated totheratetreatmentoftheaccumulateddeferredincome
taxes.ATXITransmissionProjectATXI'sSpoonRiverprojectinnorthwestIllinoisisaMISO-approvedtransmissionlineprojectwithanexpectedcostof$150million.InAugust2014,ATXImadeafiling withtheICCrequestingacertificateofpublicconvenience andnecessityandprojectapprovalfortheSpoonRiver project.AdecisionisexpectedfromtheICCin2015.A certificateofpublicconvenienceandnecessityisrequired beforeATXIcanproceedwithright-of-wayacquisitions.
Federal2011WholesaleDistributionRateCaseInJanuary2011,AmerenIllinoisfiledarequestwiththeFERCtoincreaseitsannualrevenuesforelectricdeliveryservicetoitswholesalecustomers.These wholesaledistributionrevenuesaretreatedasadeduction fromAmerenIllinois'revenuerequirementinretailrate filingswiththeICC,withnomaterialeffectonnetincome.
InMarch2011,theFERCissuedanorderauthorizingthe proposedratestotakeeffect,subjecttorefundwhenthe finalratesaredetermined.InSeptember2014,theFERC issuedanorderthatfinalizedratesandresultedinrefunds duetothewholesalecustomers.InOctober2014,Ameren Illinoisrefunded$24million,includinginterest,tothe wholesalecustomersandrequestedarehearingoncertain aspectsoftheorder.
90 AmerenIllinoisElectricTransmissionRateRefundInJuly2012,theFERCissuedanorderconcludingthatAmerenIllinoisimproperlyincludedacquisitionpremiums,includinggoodwill,indeterminingthecommonequityused initselectrictransmissionformularateandthereby inappropriatelyrecoveredahigheramountfromitselectric transmissioncustomers.TheorderrequiredAmerenIllinois tomakerefundstocustomersforsuchimproperlyincluded amounts.InAugust2012,AmerenIllinoisfiledarequestfor arehearingofthisorder.AmerenIllinoissubmittedarefundreportinNovember2012andconcludedthatnorefundwaswarranted.Several wholesalecustomersfiledaprotestwiththeFERC regardingthatconclusion.InJune2013,theFERCissued anorderthatrejectedAmerenIllinois'November2012 refundreportandprovidedguidanceastothefilingofa newrefundreport.InJuly2013,AmerenIllinoisfileda revisedrefundreportbasedontheguidanceprovidedinthe June2013order,aswellasarequestforarehearingofthat order.AmerenIllinois'July2013refundreportalso concludedthatnorefundwaswarranted.InJune2014,theFERCissuedanorderthatdeniedAmerenIllinois'rehearingrequestsoftheJuly2012order andtheJune2013order.Separately,inJune2014,the FERCissuedanorderestablishingsettlementprocedures and,ifnecessary,hearingproceduresregardingAmeren Illinois'July2013refundreport.InJuly2014,Ameren IllinoisfiledanappealoftheFERCorderdenyingrehearing oftheJuly2012andJune2013orderswiththeUnited StatesCourtofAppealsfortheDistrictofColumbiaCircuit.
AlsoinJuly2014,AmerenIllinoisfiledarequestfor rehearingwiththeFERCofitsJune2014orderregarding theJuly2013refundreport.InNovember2014,theUnited StatesCourtofAppealsfortheDistrictofColumbiaissued anordersuspendingtheappealuntiltherelatedFERC proceedingshavebeencompleted.AmerenIllinoisestimatesthemaximumpretaxchargetoearningsforthispossiblerefundobligationthrough December31,2014,is$22million.AmerenandAmeren Illinoisrecordedacurrentliabilityrepresentingtheir estimateoftheprobablerefundduetoelectrictransmission customersbasedontheJune2014order.IfAmerenIllinois wastodeterminethatarefundtoitselectrictransmission customersinexcessoftheamountalreadyrecordedis probable,anadditionalchargetoearningswouldbe recordedintheperiodinwhichthatdeterminationwas
made.FERCComplaintCasesInNovember2013,acustomergroupfiledacomplaintcasewiththeFERCseekingareductionintheallowedbasereturnoncommonequityfortheFERC-regulatedMISO transmissionratebaseundertheMISOtariffto9.15%.
Currently,theFERC-allowedbasereturnoncommonequity forMISOtransmissionownersis12.38%.InOctober2014, theFERCissuedanorderestablishingsettlementproceduresand,ifnecessary,hearingproceduresregarding theallowedbasereturnoncommonequity.InJanuary 2015,thesettlementjudgeterminatedsettlement proceedingsandtheFERCscheduledthecaseforhearing proceedings,requiringaninitialdecisiontobeissuedno laterthanNovember30,2015.Astheoriginal15-month refundperiodfortheNovember2013complaintcaseended inFebruary2015,anothercustomercomplaintcasewas filedinFebruary2015.TheFebruary2015complaintcase seeksareductionintheallowedbasereturnoncommon equityfortheFERC-regulatedMISOtransmissionratebase undertheMISOtariffto8.67%.InOctober2014,theFERCissuedanorderinaproceeding,inwhichtheAmerenCompanieswerenot involved,reducingtheallowedbasereturnoncommon equityforNewEnglandtransmissionownersfrom11.14%
to10.57%,withrateincentivesallowedupto11.74%.The FERCorderintheNewEnglandtransmissionowners'case appliedobservablemarketdatafromOctober2012to March2013todeterminetheallowedbasereturnon commonequity.TheFERCexpectstheevidenceandthe calculationusedintheNewEnglandtransmissionowners' casetoguideitsdecisionintheMISOcomplaintcase discussedabove.TheFERCcalculationwillestablishthe allowedbasereturnoncommonequity,whichspecifiesa uniquetimeperiodforeachcomplaintcase,andwillrequire multipleinputsbasedonobservablemarketdataspecificto theutilityindustryandbroadermacroeconomicdata.In January2015,thesettlementjudgefortheMISOcomplaint caseorderedthatJuly13,2015,shouldbethecut-offdate fortheobservablemarketdatatobeusedinthecalculation oftheallowedbasereturnoncommonequity.Basedonthe informationintheseorders,AmerenandAmerenIllinois recordedcurrentliabilitiesrepresentingtheirestimateofthe requiredrefundsfromtherefundeffectivedateof November12,2013,throughDecember31,2014.Ameren MissourididnotrecordaliabilityasofDecember31,2014, anddoesnotexpectthatareductionintheFERC-allowed basereturnoncommonequityforMISOtransmission ownerswouldbematerialtoitsresultsofoperations, financialposition,orliquidity.InNovember2014,wefiledarequestwiththeFERCtoincludeanincentiveadderofupto50basispointsonthe allowedbasereturnoncommonequityforparticipationin anRTO,andwesoughtauthorizationtodefercollectionofit untilaftertheissuanceofthefinalorderaddressingthe initialMISOcomplaintcasediscussedabove.FERC approvedtherequesttoimplementtheincentiveadder prospectivelyfromJanuary6,2015,andtodefercollection ofituntiltheissuanceofthefinalorderaddressingthe initialMISOcomplaintcase.AmerenMissouriPowerPurchaseAgreementwithEntergyBeginningin2005,theFERCissuedaseriesofordersaddressingacomplaintfiledin2001bytheLouisianaPublicServiceCommissionagainstEntergyandcertainofits affiliates.Thecomplaintallegedunjustandunreasonable costallocations.AsaresultoftheFERCorders,Entergy 91 beganbillingAmerenMissouriin2007foradditionalchargesundera165-megawattpowerpurchaseagreement thatexpiredAugust31,2009.InMay2012,theFERC issuedanorderstatingthatEntergyshouldnothave includedadditionalchargestoAmerenMissouriunderthe powerpurchaseagreement.Pursuanttotheorder,inJune 2012,EntergypaidAmerenMissouri$31million,with
$24millionrecordedasareductionto"OperatingExpenses-Purchasedpower"expenseand$5millionforinterest recordedas"Miscellaneousincome"inthestatementof income.Theremaining$2millionwasrecordedasanoffset totheFACunder-recoveredregulatoryassetfortheamount refundabletocustomers.TheamountoftheEntergyrefund recordedtotheFACregulatoryassetrelatedtotheperiod whentheFACwaseffective;therefore,suchcostswere previouslyincludedincustomerrates.InNovember2013, EntergyfiledanappealoftheFERC'sMay2012orderwith theUnitedStatesCourtofAppealsfortheDistrictof ColumbiaCircuit.Amerenisnotabletopredictwhenor howthecourtwillruleonEntergy'sappeal.TheLouisianaPublicServiceCommissionappealedtheFERC'sordersregardingLouisianaPublicService Commission'scomplaintagainstEntergyServices,Inc.to theUnitedStatesCourtofAppealsfortheDistrictof ColumbiaCircuit.ThatcourtorderedfurtherFERC proceedingsregardingLouisianaPublicService Commission'scomplaint.AmerenMissouriestimatesthatit couldincuranadditionalexpenseofupto$8millionifthe FERC'sMay2012orderisoverturnedonappeal.AmerenMissouribelievesthatthelikelihoodofincurringany expenseisnotprobable,andthereforenoliabilityhasbeen recordedasofDecember31,2014.CombinedConstructionandOperatingLicenseIn2008,AmerenMissourifiledanapplicationwiththeNRCforaCOLforanewnuclearunitatAmerenMissouri'sexistingCallawayCounty,Missouri,energycentersite.In 2009,AmerenMissourisuspendeditseffortstobuildanew nuclearunitattheCallawaysite,andtheNRCsuspended reviewoftheCOLapplication.Thesuspendedstatusofthe COLapplicationcurrentlyextendsthroughtheendof2015.AmerenMissouriestimatesthetotalcosttoobtainaCOLfortheCallawaysitetobeapproximately$100million.
AsofDecember31,2014,AmerenMissourihadcapitalized investmentsof$69millionforthedevelopmentofanew nuclearenergycenter.Amereniscurrentlyevaluatingall potentialnucleartechnologiesinordertomaintainan optionfornuclearpowerinthefuture.AllofAmerenMissouri'scapitalizedinvestmentsforthedevelopmentofanewnuclearenergycenterwillremain capitalizedwhilemanagementpursuesoptionstomaximize thevalueofitsinvestment.Ifeffortstolicenseadditional nucleargenerationareabandoned,theNRCdoesnotextend theCOLapplicationsuspendedstatus,orifmanagement concludesitisprobablethatthecostsincurredwillbe disallowedinrates,achargetoearningswouldbe recognizedintheperiodinwhichthatdeterminationis
made.92 RegulatoryAssetsandLiabilitiesInaccordancewithauthoritativeaccountingguidanceregardingaccountingfortheeffectsofcertaintypesofregulation,wedefercertaincostsasregulatoryassetspursuanttoactionsofregulatorsorbasedontheexpectedabilitytorecoversuchcostsinrateschargedtocustomers.Wemayalsodefercertainamountsasregulatoryliabilitiesbecauseofactionsof regulatorsorbecauseoftheexpectationthatsuchamountswillbereturnedtocustomersinfuturerates.Thefollowingtable presentsourregulatoryassetsandregulatoryliabilitiesatDecember31,2014and2013:
2014 2013 Ameren Missouri AmerenIllinoisAmeren Ameren Missouri AmerenIllinoisAmerenCurrentregulatoryassets:Under-recoveredFAC (a)(b)..............................$128$-$128$104$-$104Under-recoveredIllinoiselectricpowercosts (c)..............-22-11Under-recoveredPGA (c)................................-2020-11MTMderivativelosses (d)...............................324274143650Energyefficiencyriders (e)..............................3-3---IEIMArevenuerequirementreconciliation (a)(f)...............-6565---FERCrevenuerequirementreconciliation (a)(g)...............--3---Totalcurrentregulatoryassets
............................$163$129$295$118$38$156Noncurrentregulatoryassets:Pensionandpostretirementbenefitcosts (h)................$148$275$423$44$140$184Incometaxes (i).......................................25332562307237Assetretirementobligations (j)...........................-55-55Callawaycosts (a)(k)....................................36-3640-40Unamortizedlossonreacquireddebt (a)(l)...................72801527774151Contaminatedfacilitiescosts (m)..........................-251251-271271MTMderivativelosses (d)...............................141441588118126Stormcosts (n).......................................-33538Demand-sidecostsbeforetheMEEIAimplementation (a)(o).....44-4458-58Workers'compensationclaims (p)........................77146612Creditfacilitiesfees (q).................................5-55-5Commonstockissuancecosts (r).........................2-24-4Constructionaccountingforpollutioncontrolequipment (a)(s)...21-2122-22Solarrebateprogram (a)(t)...............................88-8827-27IEIMArevenuerequirementreconciliation (a)(f)...............-101101-6565FERCrevenuerequirementreconciliation (a)(g)...............-812--5 Other (u)............................................561181220Totalnoncurrentregulatoryassets
.........................$695$883$1,582$534$701$1,240Currentregulatoryliabilities:Over-recoveredFAC (b).................................$-$-$-$26$-$26Over-recoveredIllinoiselectricpowercosts (c)...............-2626-5151Over-recoveredPGA (c).................................2252752934MTMderivativegains (d)................................1611726127Wholesaledistributionrefund (v)..........................----1313IEIMArevenuerequirementreconciliation (f)................----6565FERCrevenuerequirementreconciliation (g).................-1111---RefundreservesforFERCordersandauditfindings (w)........-2125---Totalcurrentregulatoryliabilities
..........................$18$84$106$57$159$216Noncurrentregulatoryliabilities:Incometaxes (x)......................................$41$14$55$37$3$40Uncertaintaxpositionstracker (y).........................7-71-1Removalcosts (z).....................................8866431,5298286101,438Assetretirementobligation (j)............................182-182146-146Baddebtriders (aa)....................................-77-88Pensionandpostretirementbenefitcoststracker (ab)..........24-2415-15Energyefficiencyriders (e)..............................-393933336FERCrevenuerequirementreconciliation (g).................----1010 Other (ac)............................................7-711-11Totalnoncurrentregulatoryliabilities
.......................$1,147$703$1,850$1,041$664$1,705(a)Theseassetsearnareturn.
93 (b)Under-recoveredorover-recoveredfuelcoststoberecoveredthroughtheFAC.Specificaccumulationperiodsaggregatetheunder-recoveredorover-recoveredcostsoverfourmonths,anyrelatedadjustmentsthatoccuroverthefollowingfourmonths,andtherecoveryfromcustomersthatoccursoverthenexteightmonths.(c)Costsunder-orover-recoveredfromutilitycustomers.Amountswillberecoveredfrom,orrefundedto,customerswithinoneyearofthe deferral.(d)Deferralofcommodity-relatedderivativeMTMlossesorgains.SeeNote7-DerivativeFinancialInstrumentsforadditionalinformation.
(e)TheAmerenMissouribalancerelatestotheMEEIA.BeginninginJanuary2014,aMEEIAriderallowedAmerenMissouritocollectfromorrefundtocustomersanyannualdifferenceintheactualamountsincurredandtheamountscollectedfromcustomersfortheMEEIAprogram costsanditslostrevenues.UndertheMEEIArider,collectionsfromorrefundstocustomersoccuroneyearaftertheprogramcostsandlost revenuesareincurred.TheAmerenIllinoisbalancerelatestoaregulatorytrackingmechanismtorecoveritselectricandnaturalgascosts associatedwithdeveloping,implementing,andevaluatingcustomerenergyefficiencyanddemandresponseprograms.Anyunder-recoveryor over-recoverywillbecollectedfromorrefundedtocustomersoverthe12monthsfollowingtheplanyear.(f)ThedifferencebetweenAmerenIllinois'annualrevenuerequirementcalculatedundertheIEIMA'sperformance-basedformularatemakingframeworkandtherevenuerequirementincludedincustomerratesforthatyear.SubjecttoICCapproval,theseamountswillbecollectedfrom orrefundedtocustomerswithintwoyears.(g)AmerenIllinois'andATXI'sannualrevenuerequirementreconciliationadjustmentscalculatedpursuanttotheFERC'selectrictransmissionformularatemakingframework.Theunder-recoveryorover-recoverywillberecoveredfromorrefundedtocustomerswithintwoyears.(h)Thesecostsarebeingamortizedinproportiontotherecognitionofpriorservicecosts(credits)andactuariallosses(gains)attributabletoAmeren'spensionplanandpostretirementbenefitplans.SeeNote11-RetirementBenefitsforadditionalinformation.(i)Offsettocertaindeferredtaxliabilitiesforexpectedrecoveryoffutureincometaxeswhenpaid.Thiswillberecoveredovertheexpectedlifeoftherelatedassets.(j)RecoverableorrefundableremovalcostsforAROs,includingnetrealizedandunrealizedgainsandlossesrelatedtothenucleardecommissioningtrustfundinvestments.SeeNote1-SummaryofSignificantAccountingPolicies-AssetRetirementObligations.(k)AmerenMissouri'sCallawayenergycenteroperationsandmaintenanceexpenses,propertytaxes,andcarryingcostsincurredbetweentheplantin-servicedateandthedatetheplantwasreflectedinrates.Thesecostsarebeingamortizedovertheremaininglifeoftheenergycenter's currentoperatinglicense,whichexpiresin2024.(l)Lossesrelatedtoreacquireddebt.Theseamountsarebeingamortizedoverthelivesoftherelatednewdebtissuancesortheoriginallivesoftheolddebtissuancesifnonewdebtwasissued.(m)TherecoverableportionofaccruedenvironmentalsiteliabilitiesthatwillbecollectedfromelectricandnaturalgascustomersthroughICC-approvedcostrecoveryriders.Theperiodofrecoverywilldependonthetimingofremediationexpenditures.SeeNote15-Commitmentsand Contingenciesforadditionalinformation.(n)AmerenMissouri'sactualstormcoststhatexceedthenormalizedstormcostsforratepurposes.AsapprovedbytheDecember2012MoPSCelectricrateorder,the2006,2007,and2008stormcostswereamortizedthroughDecember2014.TheAmerenIllinoisbalanceincludes2013 stormcostsdeferredinaccordancewiththeIEIMA.Thesecostsarebeingamortizedoverafive-yearperiodbeginningin2013.(o)Demand-sidecostsincurredpriortoimplementationoftheMEEIAin2013,includingthecostsofdeveloping,implementingandevaluatingcustomerenergyefficiencyanddemandresponseprograms.CostsincurredfromMay2008throughSeptember2008arebeingamortizedover a10-yearperiodthatbeganinMarch2009.CostsincurredfromOctober2008throughDecember2009arebeingamortizedoverasix-year periodthatbeganinJuly2010.CostsincurredfromJanuary2010throughFebruary2011arebeingamortizedoverasix-yearperiodthatbegan inAugust2011.CostsincurredfromMarch2011throughJuly2012arebeingamortizedoverasix-yearperiodthatbeganinJanuary2013.The amortizationperiodforcostsincurredfromAugust2012throughDecember2012willbedeterminedintheJuly2014electricratecase.(p)Theperiodofrecoverywilldependonthetimingofactualexpenditures.
(q)AmerenMissouri'scostsincurredtoenterintoandmaintainthe2012MissouriCreditAgreement.AdditionalcostswereincurredinDecember2014toamendandrestatethe2012MissouriCreditAgreement.Thesecostsarebeingamortizedoverthelifeofthecreditfacility,endingin December2019,toconstructionworkinprogress,whichwillbedepreciatedwhenassetsareplacedintoservice.(r)TheMoPSC'sMay2010electricrateorderallowedAmerenMissouritorecoveritsportionofAmeren'sSeptember2009commonstockissuancecosts.Thesecostsarebeingamortizedoverfiveyears,beginninginJuly2010.(s)TheMoPSC'sMay2010electricrateorderallowedAmerenMissouritorecordanallowanceforfundsusedduringconstructionforpollutioncontrolequipmentatitsSiouxenergycenteruntilthecostofthatequipmentwasincludedincustomerrates.Thesecostswillbeamortized overtheexpectedlifeoftheSiouxenergycenter,whichiscurrentlythrough2033.(t)CostsassociatedwithAmerenMissouri'ssolarrebateprogrambeginninginAugust2012tofulfillitsrenewableenergyportfoliorequirement.Theamortizationperiodforthesecostswillbethreeyears,commencingwiththeeffectivenessofAmerenMissouri'scurrentJuly2014electric ratecase.(u)TheAmerenIllinoisbalanceincludesAmerenIllinoisMergerintegrationandoptimizationcosts,whicharebeingamortizedoverfouryears,beginninginJanuary2012.TheAmerenIllinoistotalalsoincludescostsrelatedtothe2013naturalgasdeliveryserviceratecasecosts,which arebeingamortizedoveratwo-yearperiodthatbeganinJanuary2014.AtAmerenMissouri,thebalanceprimarilyincludesthecostof renewableenergycreditstofulfillitsrenewableenergyportfoliorequirement.CostsincurredfromJanuary2010throughJuly2012arebeing amortizedoverthreeyears,beginninginJanuary2013.(v)EstimatedrefundtowholesaleelectriccustomersasofDecember31,2013.See2011WholesaleDistributionRateCaseabove.
(w)EstimatedrefundstotransmissioncustomersrelatedtoFERCordersandauditfindings.InregardstotheFERCorders,seeAmerenIllinoisElectricTransmissionRateRefundandFERCComplaintCasesabove.(x)Unamortizedportionofinvestmenttaxcreditsandfederalexcessdeferredtaxes.Theunamortizedportionofinvestmenttaxcreditsandthefederalexcessdeferredtaxesarebeingamortizedovertheexpectedlifeoftheunderlyingassets.(y)Thetrackerisamortizedoverthreeyears,beginningfromthedatetheamountsareincludedinrates.SeeNote13-IncomeTaxesforadditional information.(z)Estimatedfundscollectedfortheeventualdismantlingandremovalofplantfromservice,netofsalvagevalue,uponretirementrelatedtoourrate-regulatedoperations.
94 (aa)AregulatorytrackingmechanismforthedifferencebetweenthelevelofbaddebtincurredbyAmerenIllinoisunderGAAPandthelevelofsuchcostsincludedinelectricandnaturalgasrates.Theover-recoveryrelatingto2012wasrefundedtocustomersfromJune2013throughMay2014.Theover-recoveryrelatingto2013isbeingrefundedtocustomersfromJune2014throughMay2015.Theover-recoveryrelatingto 2014willberefundedtocustomersfromJune2015throughMay2016.(ab)AregulatorytrackingmechanismforthedifferencebetweenthelevelofpensionandpostretirementbenefitcostsincurredbyAmerenMissouriunderGAAPandthelevelofsuchcostsbuiltintorates.ForperiodspriortoAugust2012,theMoPSC'sDecember2012electricrateorder directedtheamortizationtooccuroverfiveyears,beginninginJanuary2013.ForperiodsafterAugust2012,theamortizationperiodwillbe determinedintheJuly2014electricratecase.(ac)BalanceincludesthecostsofrenewableenergycreditstofulfillAmerenMissouri'srenewableenergyportfoliorequirementfromAugust2012throughDecember2013,whichwerelessthantheamountincludedinrates.Thebalancealsoincludesaregulatorytrackingmechanismat AmerenMissouriforthedifferencebetweenthelevelofstormcostsincurredinaparticularyearandthelevelofsuchcostsbuiltintorates.The amortizationperiodsfortheseover-recoverieswillbedeterminedintheJuly2014electricratecase.Ameren,AmerenMissouri,andAmerenIllinoiscontinuallyassesstherecoverabilityoftheirregulatoryassets.Undercurrentaccountingstandards,regulatoryassetsarechargedtoearningswhenitisnolongerprobablethatsuchamountswillberecoveredthroughfuturerevenues.Totheextentthatpaymentsofregulatoryliabilitiesarenolongerprobable,theamounts arecreditedtoearnings.NOTE3-PROPERTYANDPLANT,NETThefollowingtablepresentspropertyandplant,net,foreachoftheAmerenCompaniesatDecember31,2014and2013:
Ameren Missouri (a)AmerenIllinoisOtherAmeren (a)2014Propertyandplant,atoriginalcost:
Electric.................................................................$17,052$6,517$344$23,913Naturalgas
..............................................................4311,854-2,28517,4838,37134426,198Less:Accumulateddepreciationandamortization
..................................7,0862,4222519,75910,3975,9499316,439Constructionworkinprogress:Nuclearfuelinprocess
.....................................................209--209 Other..................................................................261216299776Propertyandplant,net
.......................................................$10,867$6,165$392$17,424 2013 Propertyandplant,atoriginalcost:
Electric.................................................................$15,964$5,426$336$21,726Naturalgas..............................................................4131,562-1,97516,3776,98833623,701Less:Accumulateddepreciationandamortization
..................................6,7661,6272518,6449,6115,3618515,057Constructionworkinprogress:Nuclearfuelinprocess.....................................................246--246 Other..................................................................59522879902Propertyandplant,net.......................................................$10,452$5,589$164$16,205(a)AmountsinAmerenandAmerenMissouriincludetwoCTsunderseparatecapitalleaseagreements.Thegrosscumulativeassetvalueofthoseagreementswas$233millionand$228millionatDecember31,2014and2013,respectively.ThetotalaccumulateddepreciationassociatedwiththetwoCTswas$66millionand$56millionatDecember31,2014and2013,respectively.Inaddition,AmerenMissourihasinvestments indebtsecurities,whichwereclassifiedasheld-to-maturity,relatedtothetwoCTsfromthecityofBowlingGreenandAudrainCounty.Asof December31,2014and2013,thecarryingvalueofthesedebtsecuritieswas$294millionand$299million,respectively.
95 ThefollowingtableprovidesaccruedcapitalandnuclearfuelexpendituresatDecember31,2014,2013,and2012,whichrepresentnoncashinvestingactivityexcludedfromtheaccompanyingstatementsofcashflows:
Ameren (a)Ameren Missouri Ameren IllinoisAccruedcapitalexpenditures:
2014...................................................................................$181$72$59 2013...................................................................................1757486 2012...................................................................................1076337Accruednuclearfuelexpenditures:
2014...................................................................................1313(b)2013...................................................................................88(b) 2012...................................................................................88(b)(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.
(b)Notapplicable.NOTE4-SHORT-TERMDEBTANDLIQUIDITYTheliquidityneedsoftheAmerenCompaniesaretypicallysupportedthroughtheuseofavailablecash,short-termintercompanyborrowings,drawingsundercommittedbankcreditagreements,orcommercialpaperissuances.2012CreditAgreementsOnDecember11,2014,eachofthe2012CreditAgreementswasamendedandrestated.Theamendedandrestatedagreementsextendedthematuritydatesofthe2012CreditAgreementsfromNovember14,2017,toDecember11,2019,resultingin$2.1billionofcreditprovidedthroughtheextendedmaturitydate.Thefacilitiescontinuetoinclude24 international,national,andregionallenders,withnosinglelenderprovidingmorethan$115millionofcreditinaggregate.Theobligationsofeachborrowerundertherespective2012CreditAgreementstowhichitisapartyareseveralandnotjoint,and,exceptunderlimitedcircumstancesrelatingtoexpensesandindemnities,theobligationsofAmerenMissouriand AmerenIllinoisundertherespective2012CreditAgreementsarenotguaranteedbyAmerenoranyothersubsidiaryof Ameren.Themaximumaggregateamountavailabletoeachborrowerundereachfacilityisshowninthefollowingtable(the amountbeingeachborrower's"BorrowingSublimit"):2012MissouriCreditAgreement2012IllinoisCreditAgreement Ameren..........................................................................$700$500AmerenMissouri...................................................................800(a)AmerenIllinois.....................................................................(a)800(a)Notapplicable.Amerenhastheoptiontoseekadditionalcommitmentsfromexistingornewlenderstoincreasethetotalfacility sizeofthe2012CreditAgreementsuptoamaximum amountof$1.2billionforthe2012MissouriCredit Agreementand$1.3billionforthe2012IllinoisCredit Agreement.The2012CreditAgreements,aswellasthe BorrowingSublimitsofAmeren,AmerenMissouri,and AmerenIllinois,willmatureandexpireonDecember11, 2019.Theprincipalamountofeachrevolvingloanowedby aborrowerunderanyofthe2012CreditAgreementsto whichitisapartywillbedueandpayablenolaterthanthe maturitydateofsuch2012CreditAgreement.Theprincipal amountofeachrevolvingloanowedbyAmerenMissourior AmerenIllinoisundertheapplicable2012CreditAgreement willbedueandpayablenolaterthantheearlierofthe maturitydateor364daysafterthedateofsuchloan.Theobligationsofallborrowersunderthe2012CreditAgreementsareunsecured.Loansareavailableona revolvingbasisundereachofthe2012CreditAgreements.Fundsborrowedmayberepaidand,subjecttosatisfaction oftheconditionstoborrowing,reborrowedfromtimeto time.Attheelectionofeachborrower,theinterestrateson suchloanswillbethealternatebaserateplusthemargin applicabletotheparticularborrowerand/ortheeurodollar rateplusthemarginapplicabletotheparticularborrower.
Theapplicablemarginswillbedeterminedbythe borrower'slong-termunsecuredcreditratingsor,ifnosuch ratingsarethenineffect,theborrower'scorporate/issuer ratingsthenineffect.The2012CreditAgreementsprovide fortheissuanceoflettersofcreditfortheaccountofthe borrowersuptoamaximumof25%oftheaggregateinitial commitmentundertheapplicable2012CreditAgreement.
Theborrowershavereceivedcommitmentsfromthe lenderstoissuelettersofcreditupto$100millionunder eachofthe2012CreditAgreements.Inaddition,the issuanceoflettersofcreditissubjecttothe$2.1billion overallcombinedfacilityborrowinglimitationsofthe2012 CreditAgreements.
96 Theborrowerswillusetheproceedsfromanyborrowingsunderthe2012CreditAgreementsforgeneralcorporatepurposes,includingworkingcapital,commercial paperliquiditysupport,issuanceoflettersofcredit,loan fundingundertheAmerenmoneypoolarrangements,and othershort-termintercompanyloanarrangements,orfor payingfeesandexpensesincurredinconnectionwiththe 2012CreditAgreements.Bothofthe2012Credit AgreementsareavailabletoAmerentosupportissuances underAmeren'scommercialpaperprogram,subjectto borrowingsublimits.The2012MissouriCreditAgreementandthe2012IllinoisCreditAgreementareavailableto supportissuancesunderAmerenMissouri'sandAmeren Illinois'commercialpaperprograms,respectively.Asof December31,2014,basedoncommercialpaper outstandingandlettersofcreditissuedunderthe2012 CreditAgreements,theaggregateamountofcreditcapacity availabletoAmeren(parent),AmerenMissouri,andAmeren Illinois,collectively,atDecember31,2014,was$1.4billion.Ameren,AmerenMissouri,andAmerenIllinoisdidnotborrowunderthe2012CreditAgreementsfortheyears endedDecember31,2014and2013.CommercialPaperThefollowingtablesummarizestheborrowingactivityandrelevantinterestratesunderAmerenMissouri'sandAmerenIllinois'commercialpaperprogram,fortheyearsendedDecember31,2014and2013:
Ameren (parent)Ameren Missouri Ameren Illinois Ameren Consolidated 2014Averagedailycommercialpaperoutstanding
.......................................$423$110$165$639Outstandingborrowingsatperiod-end
............................................5859732714Weighted-averageinterestrate
..................................................0.36%0.38%0.32%0.36%Peakcommercialpaperduringperiod (a)...........................................$625$495$300$910Peakinterestrate
.............................................................0.75%0.70%0.60%0.75%
2013 Averagedailycommercialpaperoutstanding.......................................$54$-$-$54Outstandingborrowingsatperiod-end............................................368--368Weighted-averageinterestrate
..................................................0.56%-%-%0.56%Peakcommercialpaperduringperiod (a)...........................................$368$-$-$368Peakinterestrate
.............................................................0.85%-%-%0.85%IndebtednessProvisionsandOtherCovenantsTheinformationbelowpresentsasummaryoftheAmerenCompanies'compliancewithindebtednessprovisionsandothercovenants.The2012CreditAgreementscontainconditionsforborrowingsandissuancesoflettersofcredit.Theseinclude theabsenceofdefaultorunmatureddefault,material accuracyofrepresentationsandwarranties(excludingany representationaftertheclosingdateastotheabsenceof materialadversechangeandmateriallitigation,andthe absenceofanynoticeofviolation,liability,orrequirement underanyenvironmentallawsthatcouldhaveamaterial adverseeffect),andobtainmentofrequiredregulatory authorizations.Inaddition,itisaconditionforanyAmeren Illinoisborrowingthat,atthetimeofandaftergivingeffect tosuchborrowing,AmerenIllinoisnotbeinviolationofany limitationonitsabilitytoincurunsecuredindebtedness containedinitsarticlesofincorporation.The2012CreditAgreementsalsocontainnonfinancialcovenants,includingrestrictionsontheabilitytoincurliens, totransactwithaffiliates,todisposeofassets,tomake investmentsinortransferassetstoitsaffiliates,andto mergewithotherentities.The2012CreditAgreements requireeachofAmeren,AmerenMissouri,andAmeren Illinoistomaintainconsolidatedindebtednessofnotmore than65%ofitsconsolidatedtotalcapitalizationpursuanttoadefinedcalculationsetforthintheagreements.Asof December31,2014,theratiosofconsolidated indebtednesstototalconsolidatedcapitalization,calculated inaccordancewiththeprovisionsofthe2012Credit Agreements,were50%,49%,and47%,forAmeren, AmerenMissouri,andAmerenIllinois,respectively.In addition,underthe2012IllinoisCreditAgreementand,by virtueofthecross-defaultprovisionsofthe2012Missouri CreditAgreement,underthe2012MissouriCredit Agreement,Amerenisrequiredtomaintainaratioof consolidatedfundsfromoperationsplusinterestexpenseto consolidatedinterestexpenseof2.0to1.0.However,the interestcoveragerequirementwillonlyapplyatsuchtimes asAmerendoesnothaveaseniorlong-termunsecured creditratingofatleastBaa3fromMoody'sorBBB-from S&P.AsofDecember31,2014,Amerenexceededthe ratingrequirementsandtheinterestcoveragerequirement wasnotapplicable.Failureofaborrowertosatisfya financialcovenantconstitutesanimmediatedefaultunder theapplicable2012CreditAgreement.The2012CreditAgreementscontaindefaultprovisionsthatapplyseparatelytoeachborrower;provided,however, thatadefaultofAmerenMissouriorAmerenIllinoisunder theapplicable2012CreditAgreementwillalsobedeemed toconstituteadefaultofAmerenundersuchagreement.
Defaultsincludeacross-defaulttoadefaultofsuch borrowerunderanyotheragreementcoveringoutstanding 97 indebtednessofsuchborrowerandcertainsubsidiaries(otherthanprojectfinancesubsidiariesandnonmaterial subsidiaries)inexcessof$75millionintheaggregate (includingundertheother2012CreditAgreement).
However,underthedefaultprovisionsofthe2012Credit Agreements,anydefaultofAmerenunderany2012Credit AgreementthatresultssolelyfromadefaultofAmeren MissouriorAmerenIllinoisthereunderdoesnotresultina cross-defaultofAmerenundertheother2012Credit Agreement.Further,the2012CreditAgreementdefault provisionsprovidethatanAmerendefaultunderanyofthe 2012CreditAgreementsdoesnotconstituteadefaultby AmerenMissouriorAmerenIllinois.NoneoftheAmerenCompanies'creditagreementsorfinancingagreementscontaincreditratingtriggersthat wouldcauseadefaultoraccelerationofrepaymentof outstandingbalances.Managementbelievesthatthe AmerenCompanieswereincompliancewiththeprovisions andcovenantsoftheircreditagreementsatDecember31, 2014.MoneyPoolsAmerenhasmoneypoolagreementswithandamongitssubsidiariestocoordinateandprovideforcertainshort-termcashandworkingcapitalrequirements.AmerenMissouri,AmerenIllinois,andAmerenServicesmayparticipateintheutilitymoneypoolasboth lendersandborrowers.Amerenmayparticipateinthe moneypoolonlyasalender.Internalfundsaresurplus fundscontributedtothemoneypoolfromparticipants.The primarysourcesofexternalfundsforthemoneypoolare the2012CreditAgreementsandthecommercialpaper programs.Thetotalamountavailabletothepool participantsfromtheutilitymoneypoolatanygiventimeis reducedbytheamountofborrowingsmadebyparticipants, butitisincreasedtotheextentthatthepoolparticipants advancesurplusfundstotheutilitymoneypoolorremit fundsfromotherexternalsources.Theavailabilityoffunds isalsodeterminedbyfundingrequirementlimits establishedbyregulatoryauthorizations.Participants receivingaloanunderthemoneypoolagreementmust repaytheprincipalamountofsuchloan,togetherwith accruedinterest.Therateofinterestdependsonthe compositionofinternalandexternalfundsintheutility moneypool.Theaverageinterestrateforborrowingunder themoneypoolfortheyearendedDecember31,2014,was 0.19%(2013-0.14%).SeeNote14-RelatedPartyTransactionsfortheamountofinterestincomeandexpensefromthemoney poolarrangementsrecordedbytheAmerenCompaniesfor theyearsendedDecember31,2014,2013,and2012.
98 NOTE5-LONG-TERMDEBTANDEQUITYFINANCINGSThefollowingtablepresentslong-termdebtoutstanding,includingmaturitiesduewithinoneyear,fortheAmerenCompaniesasofDecember31,2014and2013:20142013Ameren(Parent):8.875%Seniorunsecurednotesdue2014
........................................................
$-$425Less:Maturitiesduewithinoneyear
..........................................................
-(425)Long-termdebt,net
.....................................................................
$-$-AmerenMissouri:Seniorsecurednotes: (a)5.50%Seniorsecurednotesdue2014
...........................................................
-1044.75%Seniorsecurednotesdue2015
...........................................................
114 1145.40%Seniorsecurednotesdue2016
...........................................................
260 2606.40%Seniorsecurednotesdue2017
...........................................................
425 4256.00%Seniorsecurednotesdue2018 (b).........................................................
179 1795.10%Seniorsecurednotesdue2018
...........................................................
199 1996.70%Seniorsecurednotesdue2019 (b).........................................................
329 3295.10%Seniorsecurednotesdue2019
...........................................................
244 2445.00%Seniorsecurednotesdue2020
...........................................................
85 853.50%Seniorsecurednotesdue2024
...........................................................
350-5.50%Seniorsecurednotesdue2034
...........................................................
184 1845.30%Seniorsecurednotesdue2037
...........................................................
300 3008.45%Seniorsecurednotesdue2039 (b).........................................................
350 3503.90%Seniorsecurednotesdue2042 (b).........................................................
485 485Environmentalimprovementandpollutioncontrolrevenuebonds:1992Seriesdue2022 (c)(d).....................................................................
47 4719935.45%Seriesdue2028 (e)................................................................(e)(e)1998SeriesAdue2033 (c)(d)...................................................................
60 601998SeriesBdue2033 (c)(d)...................................................................
50 501998SeriesCdue2033 (c)(d)...................................................................
50 50Capitalleaseobligations:CityofBowlingGreencapitallease(PenoCreekCT)due2022
........................................
54 59AudrainCountycapitallease(AudrainCountyCT)due2023
..........................................
240 240Totallong-termdebt,gross
.................................................................
4,005 3,764Less:Unamortizeddiscountandpremium
......................................................
(6)(7)Less:Maturitiesduewithinoneyear
..........................................................
(120)(109)Long-termdebt,net
.....................................................................$3,879$3,648 99 20142013AmerenIllinois:Seniorsecurednotes:6.20%Seniorsecurednotesdue2016 (f)..........................................................$54$546.25%Seniorsecurednotesdue2016 (g).........................................................
75 756.125%Seniorsecurednotesdue2017 (g)(h).......................................................
250 2506.25%Seniorsecurednotesdue2018 (g)(h)........................................................
144 1449.75%Seniorsecurednotesdue2018 (g)(h)........................................................
313 3132.70%Seniorsecurednotesdue2022 (g)(h)........................................................
400 4003.25%Seniorsecurednotesdue2025 (g).........................................................
300-6.125%Seniorsecurednotesdue2028 (g)........................................................
60 606.70%Seniorsecurednotesdue2036 (g).........................................................
61 616.70%Seniorsecurednotesdue2036 (f)..........................................................
42 424.80%Seniorsecurednotesdue2043 (g).........................................................
280 2804.30%Seniorsecurednotesdue2044 (g).........................................................
250-Environmentalimprovementandpollutioncontrolrevenuebonds:5.90%Series1993due2023 (i).................................................................(i)325.70%1994ASeriesdue2024 (j)................................................................(j)365.95%1993SeriesC-1due2026 (k).............................................................
-355.70%1993SeriesC-2due2026 (k).............................................................
-81993SeriesB-1due2028 (d)(k).................................................................
17 175.40%1998ASeriesdue2028 (j)................................................................
-195.40%1998BSeriesdue2028 (j)................................................................
-33Fair-marketvalueadjustments
...................................................................
-4Totallong-termdebt,gross
.................................................................
2,246 1,863Less:Unamortizeddiscountandpremium
......................................................
(5)(7)Less:Maturitiesduewithinoneyear
...........................................................
--Long-termdebt,net
.....................................................................$2,241$1,856Amerenconsolidatedlong-termdebt,net
...........................................................$6,120$5,504(a)ThesenotesarecollaterallysecuredbyfirstmortgagebondsissuedbyAmerenMissouriundertheAmerenMissourimortgageindenture.Thenoteshaveafall-awaylienprovisionandwillremainsecuredonlyaslongasanyfirstmortgagebondsissuedundertheAmerenMissourimortgageindentureremainoutstanding.Redemption,purchase,ormaturityofallfirstmortgagebonds,includingfirstmortgagebonds currentlyoutstandingandanythatmaybeissuedinthefuture,wouldresultinareleaseofthefirstmortgagebondscurrentlysecuringthese notes,atwhichtimethesenoteswouldbecomeunsecuredobligations.ConsideringtheAmerenMissouriseniorsecurednotescurrently outstanding,wedonotexpectthefirstmortgagebondlienprotectionassociatedwiththesenotestofallawayuntil2042.(b)AmerenMissourihasagreed,duringthelifeofthesenotes,nottooptionallyredeem,purchaseorotherwiseretireinfullitsfirstmortgagebonds.AmerenMissourihasalsoagreedtopreventafirstmortgagebondreleasedatefromoccurringaslongasanyofthe8.45%senior securednotesdue2039andanyofthe3.90%seniorsecurednotesdue2042remainoutstanding.(c)ThesebondsarecollaterallysecuredbyfirstmortgagebondsissuedbyAmerenMissouriundertheAmerenMissourimortgageindentureandhaveafall-awaylienprovisionsimilartothatofAmerenMissouri'sseniorsecurednotes.Thebondsarealsobackedbyaninsuranceguarantee
policy.(d)Theinterestrates,andtheperiodsduringwhichsuchratesapply,varydependingonourselectionofdefinedratemodes.Maximuminterestratescouldreach18%dependingontheseriesofbonds.Theaverageinterestratesfor2014and2013wereasfollows:
2014 2013AmerenMissouri1992Seriesdue2022
.......0.10%0.17%AmerenMissouri1998SeriesAdue2033
.....0.26%0.34%AmerenMissouri1998SeriesBdue2033
.....0.27%0.33%AmerenMissouri1998SeriesCdue2033
.....0.26%0.34%AmerenIllinois1993SeriesB-1due2028
.....0.21%0.14%(e)ThesebondsarefirstmortgagebondsissuedbyAmerenMissouriundertheAmerenMissourimortgagebondindentureandaresecuredbysubstantiallyallAmerenMissouripropertyandfranchises.Thebondsarecallableat100%ofparvalue.Lessthan$1millionprincipalamount ofthebondsremainoutstanding.(f)ThesenotesarecollaterallysecuredbyfirstmortgagebondsissuedbyAmerenIllinoisundertheCILCOmortgageindenture.Thenoteshaveafall-awaylienprovision,andAmerenIllinoiscouldcausethesenotestobecomeunsecuredatanytimebyredeemingthepollutioncontrol bonds5.90%Series1993due2023(ofwhichlessthan$1millionremainsoutstanding).AmerenIllinoismayresecurethesenotesifit
chooses.(g)ThesenotesarecollaterallysecuredbymortgagebondsissuedbyAmerenIllinoisundertheAmerenIllinoismortgageindenture.Thenoteshaveafall-awaylienprovisionandwillremainsecuredonlyaslongasanyseriesoffirstmortgagebondsissuedundertheAmerenIllinois mortgageindentureremainoutstanding.Redemption,purchase,ormaturityofallmortgagebonds,includingfirstmortgagebondscurrently outstandingandanythatmaybeissuedinthefuture,wouldresultinareleaseofthemortgagebondscurrentlysecuringthesenotes,atwhich timethesenoteswouldbecomeunsecuredobligations.ConsideringtheAmerenIllinoisseniorsecurednotescurrentlyoutstanding,wedonot expectthemortgagebondlienprotectionassociatedwiththesenotestofallawayuntil2024.
100 (h)AmerenIllinoishasagreed,duringthelifeofthesenotes,nottooptionallyredeem,purchase,orotherwiseretireinfullitsAmerenIllinoismortgagebonds;therefore,anAmerenIllinoisfirstmortgagebondreleasedatewillnotoccuraslongasanyofthesenotesareoutstanding.(i)ThesebondsarefirstmortgagebondsissuedbyAmerenIllinoisundertheCILCOmortgageindentureandaresecuredbysubstantiallyallpropertyoftheformerCILCO.Thebondsarecallableat100%ofparvalue.Lessthan$1millionprincipalamountofthebondsremain outstanding.(j)ThesebondsaremortgagebondsissuedbyAmerenIllinoisundertheAmerenIllinoismortgageindentureandaresecuredbysubstantiallyallpropertyoftheformerIPandCIPS.Thebondsarecallableat100%ofparvalue.Thebondsarealsobackedbyaninsuranceguaranteepolicy.
Lessthan$1millionprincipalamountofthebondsremainoutstanding.(k)Thebondsarecallableat100%ofparvalue.Thefollowingtablepresentstheaggregatematuritiesoflong-termdebt,includingcurrentmaturities,fortheAmerenCompaniesatDecember31,2014:
Ameren Missouri (a)Ameren Illinois (a)Ameren Consolidated 2015..................................................................$120$-$120 2016..................................................................266129395 2017..................................................................431250681 2018..................................................................383457840 2019..................................................................581-581 Thereafter
..............................................................2,2241,410 3,634 Total..................................................................$4,005$2,246$6,251(a)Excludesunamortizeddiscountandpremiumof$6millionand$5millionatAmerenMissouriandAmerenIllinois,respectively.AllclassesofAmerenMissouri'sandAmerenIllinois'preferredstockareentitledtocumulativedividends,havevotingrights,andarenotsubjecttomandatoryredemption.ThepreferredstockofAmeren'ssubsidiarieswasincludedin"NoncontrollingInterests"onAmeren'sconsolidatedbalancesheet.ThefollowingtablepresentstheoutstandingpreferredstockofAmerenMissouriandAmerenIllinois,whichisredeemable,attheoptionoftheissuer,atthepricesshownbelowas ofDecember31,2014and2013:RedemptionPrice(pershare)20142013AmerenMissouri:Withoutparvalueandstatedvalueof$100pershare,25millionsharesauthorized$3.50Series130,000shares....................$
110.00$13$13$3.70Series40,000shares
....................
104.75 4 4$4.00Series150,000shares
....................
105.625 15 15$4.30Series40,000shares
....................
105.00 4 4$4.50Series213,595shares
....................
110.00 (a)21 21$4.56Series200,000shares
....................
102.47 20 20$4.75Series20,000shares
....................
102.176 2 2$5.50SeriesA14,000shares
....................
110.00 1 1 Total...........................................................$80$80AmerenIllinois:
Withparvalueof$100pershare,2millionsharesauthorized4.00%Series144,275shares....................$
101.00$14$144.08%Series45,224shares
....................
103.00 5 54.20%Series23,655shares
....................
104.00 2 24.25%Series50,000shares
....................
102.00 5 54.26%Series16,621shares
....................
103.00 2 24.42%Series16,190shares
....................
103.00 2 24.70%Series18,429shares
....................
103.00 2 24.90%Series73,825shares
....................
102.00 7 74.92%Series49,289shares
....................
103.50 5 55.16%Series50,000shares
....................
102.00 5 56.625%Series124,274shares
....................
100.00 12 127.75%Series4,542shares
....................
100.00 1 1 Total...........................................................$62$62TotalAmeren
......................................................$142$142(a)Intheeventofvoluntaryliquidation,$105.50.
101 Amerenhas100millionsharesof$0.01parvaluepreferredstockauthorized,withnosharesoutstanding.AmerenMissourihas7.5millionsharesof$1parvalue preferencestockauthorized,withnosuchpreferencestock outstanding.AmerenIllinoishas2.6millionsharesofno parvaluepreferredstockauthorized,withnoshares
outstanding.
AmerenInMay2014,Ameren(parent)repaidatmaturity$425millionofits8.875%seniorunsecurednotes,plusaccruedinterest.Thenoteswererepaidwithproceedsfrom commercialpaperissuances.AmerenfiledaFormS-3registrationstatementwiththeSECinMay2014,authorizingtheofferingof8.6million additionalsharesofitscommonstockunderDRPlus,which expiresinMay2017.SharesofcommonstocksoldunderDRPlusare,atAmeren'soption,newlyissuedshares, treasuryshares,orsharespurchasedintheopenmarketor inprivatelynegotiatedtransactions.InOctober2013,AmerenfiledaFormS-8registrationstatementwiththeSEC,authorizingtheofferingof4million additionalsharesofitscommonstockunderits401(k) plan.Sharesofcommonstocksoldunderthe401(k)plan are,atAmeren'soption,newlyissuedshares,treasury shares,orsharespurchasedintheopenmarketorin privatelynegotiatedtransactions.InJune2012,Ameren,AmerenMissouri,andAmerenIllinoisfiledaFormS-3shelfregistrationstatement registeringtheissuanceofanindeterminateamountof certaintypesofsecurities,whichexpiresinJune2015.From2012through2014,AmerensharesforitsDRPlusandits401(k)planswerepurchasedintheopen
market.AmerenMissouriInApril2014,AmerenMissouriissued$350millionof3.50%seniorsecurednotesdueApril15,2024,withinterestpayablesemiannuallyonApril15andOctober15ofeachyear,beginningOctober15,2014.AmerenMissourireceived proceedsof$348million,whichwereusedtorepayatmaturity$104millionofits5.50%seniorsecurednotesdueMay15, 2014andtorepayaportionofitsshort-termdebt.InOctober2013,$44millionofAmerenMissouri's19935.45%Seriestax-exemptfirstmortgagebondswereredeemedatparvalueplusaccruedinterest,and$200millionofAmerenMissouri's4.65%seniorsecurednotesmaturedandwere
retired.AmerenIllinoisInJanuary2014,AmerenIllinoisredeemedthefollowingenvironmentalimprovementandpollutioncontrolrevenuebondsatparvalueplusaccruedinterest:SeniorSecuredNotesPrincipalAmount5.90%Series1993due2023 (a)...........................................................................$325.70%1994ASeriesdue2024 (a)..........................................................................361993SeriesC-15.95%due2026
.........................................................................351993SeriesC-25.70%due2026
.........................................................................
85.40%1998ASeriesdue2028
...........................................................................195.40%1998BSeriesdue2028
...........................................................................33Totalamountredeemed.................................................................................$163(a)Lessthan$1millionprincipalamountofthebondsremainoutstandingafterredemption.InJune2014,AmerenIllinoisissued$250millionof4.30%seniorsecurednotesdueJuly1,2044,withinterestpayablesemiannuallyonJanuary1andJuly1,beginningJanuary1,2015.AmerenIllinoisreceivedproceedsof$246million,whichwereusedtorepayaportionofitsshort-termdebt.InDecember2014,AmerenIllinoisissued$300millionof3.25%seniorsecurednotesdueMarch1,2025,withinterestpayablesemiannuallyonMarch1andSeptember1,beginningMarch1,2015.AmerenIllinoisreceivedproceedsof
$298million,whichwereusedtorepayaportionofitsshort-termdebt.InDecember2013,AmerenIllinoisissued$280millionprincipalamountof4.80%seniorsecurednotesdueDecember15,2043,withinterestpayablesemiannuallyonJune15andDecember15,beginningJune15,2014.Ameren Illinoisreceivednetproceedsof$276million.Theproceedswereused,togetherwithotheravailablecash,torepayatmaturity
$150millionofits8.875%seniorsecurednotesdueDecember15,2013,andtorepayitsshort-termdebt.
102 IndentureProvisionsandOtherCovenantsAmerenMissouri'sandAmerenIllinois'indenturesandarticlesofincorporationincludecovenantsandprovisionsrelatedtoissuancesoffirstmortgagebondsandpreferredstock.AmerenMissouriandAmerenIllinoisarerequiredtomeetcertainratiostoissueadditionalfirstmortgagebondsandpreferredstock.Afailuretoachievetheseratioswouldnotresultina defaultunderthesecovenantsandprovisionsbutwouldrestrictthecompanies'abilitytoissuebondsorpreferredstock.The followingtablesummarizestherequiredandactualinterestcoverageratiosforinterestcharges,dividendcoverageratios,and bondsandpreferredstockissuableasofDecember31,2014,atanassumedinterestrateof5%anddividendrateof6%.RequiredInterestCoverageRatio (a)ActualInterestCoverageRatioBondsIssuable (b)RequiredDividendCoverageRatio (c)ActualDividendCoverageRatioPreferredStock IssuableAmerenMissouri
....2.04.3$3,6052.5115.1$2,568AmerenIllinois
......2.06.43,358 (d)1.52.7208(a)Coveragerequiredontheannualinterestchargesonfirstmortgagebondsoutstandingandtobeissued.Coverageisnotrequiredincertaincaseswhenadditionalfirstmortgagebondsareissuedonthebasisofretiredbonds.(b)Amountofbondsissuablebasedeitheronrequiredcoverageratiosorunfundedpropertyadditions,whicheverismorerestrictive.Theamountsshownalsoincludebondsissuablebasedonretiredbondcapacityof$832millionand$204millionatAmerenMissouriandAmerenIllinois, respectively.(c)Coveragerequiredontheannualdividendonpreferredstockoutstandingandtobeissued,asrequiredintherespectivecompany'sarticlesof incorporation.(d)AmountofbondsissuablebyAmerenIllinoisbasedonunfundedpropertyadditionsandretiredbondssolelyundertheformerIPmortgage indenture.AmerenMissouriandAmerenIllinoisandcertainothernonregistrantAmerensubsidiariesaresubjecttoSection305(a)oftheFederalPowerAct,whichmakesit unlawfulforanyofficerordirectorofapublicutility,as definedintheFederalPowerAct,toparticipateinthe makingorpayingofanydividendfromanyfunds"properly includedincapitalaccount."TheFERChasconsistently interpretedtheprovisiontoallowdividendstobepaidas longas(1)thesourceofthedividendsisclearlydisclosed, (2)thedividendsarenotexcessive,and(3)thereisnoself-dealingonthepartofcorporateofficials.Ataminimum, Amerenbelievesthatdividendscanbepaidbyits subsidiariesthatarepublicutilitiesfromnetincomeand retainedearnings.Inaddition,underIllinoislaw,Ameren Illinoismaynotpayanydividendonitsstock,unless, amongotherthings,itsearningsandearnedsurplusare sufficienttodeclareandpayadividendafterprovisionis madeforreasonableandproperreserves,orunlessAmeren IllinoishasspecificauthorizationfromtheICC.AmerenIllinois'articlesofincorporationrequiredividendpaymentsonitscommonstocktobebasedonratiosofcommonstocktototalcapitalizationandother provisionsrelatedtocertainoperatingexpensesand accumulationsofearnedsurplus.AmerenIllinois committedtotheFERCtomaintainaminimum30%ratioof commonstockequitytototalcapitalization.Asof December31,2014,AmerenIllinois'ratioofcommonstock equitytototalcapitalizationwas53%.InorderfortheAmerenCompaniestoissuesecuritiesinthefuture,theywillhavetocomplywithallapplicable requirementsineffectatthetimeofanysuchissuances.Off-Balance-SheetArrangementsAtDecember31,2014,noneoftheAmerenCompanieshadanyoff-balance-sheetfinancingarrangements,otherthanoperatingleasesenteredintointheordinarycourseof business.NoneoftheAmerenCompaniesexpecttoengage inanysignificantoff-balance-sheetfinancingarrangements inthenearfuture.SeeNote16-DivestitureTransactions andDiscontinuedOperationsforAmeren(parent) guaranteesandlettersofcreditissuedtosupportNewAER basedonthetransactionagreementwithIPH.
103 NOTE6-OTHERINCOMEANDEXPENSESThefollowingtablepresentsthecomponentsof"OtherIncomeandExpenses"intheAmerenCompanies'statementsofincome(loss)fortheyearsendedDecember31,2014,2013,and2012:201420132012 Ameren: (a)Miscellaneousincome:Allowanceforequityfundsusedduringconstruction
.........................................$34$37$36Interestincomeonindustrialdevelopmentrevenuebonds
.....................................
272728Interestincome
......................................................................
10 (b)34 (d)Other..............................................................................
8 (c)22Totalmiscellaneousincome
..............................................................$79$69$70Miscellaneousexpense:
Donations..........................................................................$10$12$24 (e)Other..............................................................................
121413Totalmiscellaneousexpense
.............................................................$22$26$37AmerenMissouri:Miscellaneousincome:Allowanceforequityfundsusedduringconstruction
.........................................$32$31$31Interestincomeonindustrialdevelopmentrevenuebonds
.....................................
272728Interestincome
......................................................................
1-4 (d)Totalmiscellaneousincome
..............................................................$60$58$63Miscellaneousexpense:
Donations..........................................................................
$6$4$9 Other..............................................................................
6 75Totalmiscellaneousexpense
.............................................................$12$11$14AmerenIllinois:
Miscellaneousincome:Allowanceforequityfundsusedduringconstruction
.........................................
$2$6$5Interestincome
......................................................................
7 (b)2-Other..............................................................................
8 (c)22Totalmiscellaneousincome
..............................................................$17$10$7Miscellaneousexpense:
Donations..........................................................................
$4$4$11 (e)Other..............................................................................
4 56Totalmiscellaneousexpense
.............................................................
$8$9$17(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.
(b)IncludesAmerenIllinois'interestincomereceivedin2014relatingtothe2013and2014IEIMArevenuerequirementreconciliationregulatoryas sets.(c)IncludesAmerenIllinois'incomeearnedin2014fromcustomer-requestedconstruction.
(d)IncludesAmerenMissouri'sinterestincomerelatingtoarefundofchargesincludedinanexpiredpowerpurchaseagreementwithEntergy.SeeNote2-RateandRegulatoryMattersforadditionalinformation.(e)IncludesAmerenIllinois'one-time$7.5millioncontributiontotheIllinoisScienceandEnergyInnovationTrustpursuanttotheIEIMAasaresultofAmerenIllinois'participationintheelectricdeliveryformularatemakingprocess.NOTE7-DERIVATIVEFINANCIALINSTRUMENTSWeusederivativestomanagetheriskofchangesinmarketpricesfornaturalgas,power,anduranium,aswellastheriskofchangesinrailtransportationsurcharges throughfueloilhedges.Suchpricefluctuationsmaycause thefollowing:
anunrealizedappreciationordepreciationofourcontractedcommitmentstopurchaseorsellwhen purchaseorsalepricesunderthecommitmentsare comparedwithcurrentcommodityprices; marketvaluesofnaturalgasanduraniuminventories thatdifferfromthecostofthosecommoditiesin inventory;and actualcashoutlaysforthepurchaseofthese commoditiesthatdifferfromanticipatedcashoutlays.Thederivativesthatweusetohedgetheserisksaregovernedbyourriskmanagementpoliciesforforward contracts,futures,options,andswaps.Ournetpositions arecontinuallyassessedwithinourstructuredhedging programstodeterminewhetherneworoffsetting transactionsarerequired.Thegoalofthehedgingprogram isgenerallytomitigatefinancialriskswhileensuringthat sufficientvolumesareavailabletomeetourrequirements.
Contractsweenterintoaspartofourriskmanagement programmaybesettledfinancially,settledbyphysical delivery,ornetsettledwiththecounterparty.
104 ThefollowingtablepresentsopengrosscommoditycontractvolumesbycommoditytypeforderivativeassetsandliabilitiesasofDecember31,2014and2013.AsofDecember31,2014,thesecontractsranthroughOctober2017,October2019,May2032,andOctober2016forfueloils,naturalgas,power,anduranium,respectively.Quantity(inmillions,exceptasindicated)20142013 Commodity Ameren Missouri AmerenIllinoisAmeren Ameren Missouri AmerenIllinoisAmerenFueloils(ingallons)(a).........................................50(b)5066(b)66Naturalgas(inmmbtu)
........................................2810813628108136Power(inmegawatthours)
......................................1111231114Uranium(poundsinthousands)
.................................332(b)332796(b)796(a)Fueloilsconsistofheatingoil,ultra-low-sulfurdiesel,andcrudeoil.(b)Notapplicable.Authoritativeaccountingguidanceregardingderivativeinstrumentsrequiresthatallcontractsconsideredtobederivativeinstrumentsberecordedonthebalancesheetat theirfairvalues,unlesstheNPNSexceptionapplies.See Note8-FairValueMeasurementsfordiscussionofour methodsofassessingthefairvalueofderivative instruments.Manyofourphysicalcontracts,suchasour purchasedpowercontracts,qualifyfortheNPNSexception toderivativeaccountingrules.Therevenueorexpenseon NPNScontractsisrecognizedatthecontractpriceupon physicaldelivery.IfwedeterminethatacontractmeetsthedefinitionofaderivativeandisnoteligiblefortheNPNSexception,we reviewthecontracttodetermineifitqualifiesforhedge accounting.Wealsoconsiderwhethergainsorlosses resultingfromsuchderivativesqualifyforregulatory deferral.Derivativecontractsthatqualifyforregulatory deferralarerecordedatfairvalue,withchangesinfairvalue recordedasregulatoryassetsorregulatoryliabilitiesintheperiodinwhichthechangeoccurs.Webelievederivative lossesandgainsdeferredasregulatoryassetsand regulatoryliabilitiesareprobableofrecoveryorrefund throughfuturerateschargedtocustomers.Regulatory assetsandregulatoryliabilitiesareamortizedtooperating incomeasrelatedlossesandgainsarereflectedinrates chargedtocustomers.Therefore,gainsandlossesonthese derivativeshavenoeffectonoperatingincome.Asof December31,2014and2013,allcontractsthatqualifyfor hedgeaccountingreceiveregulatorydeferral.Authoritativeaccountingguidancepermitscompaniestooffsetfairvalueamountsrecognizedfortherightto reclaimcashcollateral(areceivable)ortheobligationto returncashcollateral(aliability)againstfairvalueamounts recognizedforderivativeinstrumentsthatareexecutedwith thesamecounterpartyunderamasternettingarrangement.
TheAmerenCompaniesdidnotelecttoadoptthisguidance foranyeligiblecommoditycontracts.
105 Thefollowingtablepresentsthecarryingvalueandbalancesheetlocationofallderivativecommoditycontracts,noneofwhichweredesignatedashedginginstruments,asofDecember31,2014and2013:BalanceSheetLocation Ameren Missouri AmerenIllinoisAmeren 2014Fueloils..............Othercurrentassets
.................................$2$-$2Naturalgas
............Othercurrentassets
.................................112 Power................Othercurrentassets
.................................15-15Totalassets
.......................................$18$1$19Fueloils..............Othercurrentliabilities
...............................$22$-$22Otherdeferredcreditsandliabilities
.....................7-7Naturalgas............MTMderivativeliabilities
.............................(a)31(a)Othercurrentliabilities
...............................6-37Otherdeferredcreditsandliabilities
.....................61319 Power................MTMderivativeliabilities
.............................(a)11(a)Othercurrentliabilities
...............................3-14Otherdeferredcreditsandliabilities
.....................-131131 Uranium..............Othercurrentliabilities
...............................2-2Totalliabilities
....................................$46$186$232 2013Fueloils..............Othercurrentassets.................................$6$-$6Otherassets.......................................3-3Naturalgas
............Othercurrentassets.................................112 Power................Othercurrentassets.................................23-23Totalassets.......................................$33$1$34Fueloils..............Othercurrentliabilities...............................$2$-$2Otherdeferredcreditsandliabilities.....................1-1Naturalgas............MTMderivativeliabilities
.............................(a)27(a)Othercurrentliabilities
...............................
5-32Otherdeferredcreditsandliabilities
.....................
61925 Power................MTMderivativeliabilities
.............................(a)9(a)Othercurrentliabilities
...............................
4-13Otherdeferredcreditsandliabilities
.....................
-9999 Uranium..............Othercurrent liabilities...............................5-5Otherdeferredcreditsandliabilities.....................1-1Totalliabilities....................................$24$154$178(a)Balancesheetlineitemnotapplicabletoregistrant.Thefollowingtablepresentsthecumulativeamountofpretaxnetgains(losses)onallderivativeinstrumentsdeferredinregulatoryassetsorregulatoryliabilitiesasofDecember31,2014and2013:
Ameren Missouri AmerenIllinoisAmeren 2014Fueloilsderivativecontracts (a)..............................................................$(29)$-$(29)Naturalgasderivativecontracts (b)............................................................(11)(43)(54)Powerderivativecontracts (c)................................................................12(142)(130)Uraniumderivativecontracts (d)..............................................................(2)-(2)2013Fueloilsderivativecontracts................................................................$2$-$2Naturalgasderivativecontracts
.............................................................(10)(45)(55)Powerderivativecontracts.................................................................19(108)(89)Uraniumderivativecontracts................................................................(6)-(6)(a)RepresentsnetlossesassociatedwithfueloilsderivativecontractsatAmerenMissouri.ThesecontractsareapartialhedgeofAmerenMissouri'srailtransportationsurchargesforcoalthroughDecember2017.Currentlossesdeferredasregulatoryassetsinclude$21millionand$21millionatAmerenandAmerenMissouri,respectively.
106 (b)Representsnetlossesassociatedwithnaturalgasderivativecontracts.ThesecontractsareapartialhedgeofnaturalgasrequirementsthroughOctober2019atAmerenandAmerenMissouriandthroughOctober2018atAmerenIllinois.Currentgainsdeferredasregulatoryliabilitiesinclude$2million,$1million,and$1millionatAmeren,AmerenMissouri,andAmerenIllinois,respectively.Currentlossesdeferredas regulatoryassetsinclude$37million,$6million,and$31millionatAmeren,AmerenMissouri,andAmerenIllinois,respectively.(c)Representsnetgains(losses)associatedwithpowerderivativecontracts.ThesecontractsareapartialhedgeofpowerpricerequirementsthroughMay2032atAmerenandAmerenIllinoisandthroughDecember2015atAmerenMissouri.Currentgainsdeferredasregulatory liabilitiesinclude$15millionand$15millionatAmerenandAmerenMissouri,respectively.Currentlossesdeferredasregulatoryassets include$14million,$3million,and$11millionatAmeren,AmerenMissouri,andAmerenIllinois,respectively.(d)RepresentsnetlossesassociatedwithuraniumderivativecontractsatAmerenMissouri.ThesecontractsareapartialhedgeofAmerenMissouri'suraniumrequirementsthroughDecember2016.Currentlossesdeferredasregulatoryassetsinclude$2millionand$2millionat AmerenandAmerenMissouri,respectively.Derivativeinstrumentsaresubjecttovariouscredit-relatedlossesintheeventofnonperformancebycounterpartiestothetransaction.Exchange-tradedcontractsaresupportedbythefinancialandcreditqualityoftheclearingmembersoftherespectiveexchangesandhavenominalcreditrisk.Inallothertransactions,weareexposedtocreditrisk.Ourcreditrisk managementprograminvolvesestablishingcreditlimitsandcollateralrequirementsforcounterparties,usingmasternetting arrangements,andreportingdailyexposuretoseniormanagement.Webelievethatenteringintomasternettingarrangementsmitigatestheleveloffinanciallossthatcouldresultfromdefaultbyallowingnetsettlementofderivativeassetsandliabilities.Wegenerallyenterintothefollowingmasternetting arrangements:(1)theInternationalSwapsandDerivativesAssociationAgreement,astandardizedfinancialnaturalgasand electriccontract;(2)theMasterPowerPurchaseandSaleAgreement,createdbytheEdisonElectricInstituteandtheNational EnergyMarketersAssociation,astandardizedcontractforthepurchaseandsaleofwholesalepower;and(3)theNorth AmericanEnergyStandardsBoardInc.Agreement,astandardizedcontractforthepurchaseandsaleofnaturalgas.These masternettingarrangementsallowthecounterpartiestonetsettlesaleandpurchasetransactions.Further,collateral requirementsarecalculatedatthemasternettingarrangementlevelbycounterparty.ThefollowingtableprovidestherecognizedgrossderivativebalancesandthenetamountsofthosederivativessubjecttoanenforceablemasternettingarrangementorsimilaragreementasofDecember31,2014and2013:GrossAmountsNotOffsetontheBalanceSheetCommodityContractsEligibletobeOffsetGrossAmountsRecognizedontheBalanceSheet Derivative InstrumentsCashCollateral Received/Posted (a)Net Amount 2014 Assets:
AmerenMissouri
..............................................$18$5$-$13AmerenIllinois
................................................1--1 Ameren.....................................................$19$5$-$14 Liabilities:
AmerenMissouri
..............................................$46$5$5$36AmerenIllinois
................................................186--186 Ameren.....................................................$232$5$5$222 2013 Assets:
AmerenMissouri..............................................$33$9$-$24AmerenIllinois................................................11--
Ameren.....................................................$34$10$-$24 Liabilities:
AmerenMissouri..............................................$24$9$9$6AmerenIllinois................................................154115138 Ameren.....................................................$178$10$24$144(a)Cashcollateralreceivedreducesgrossassetbalancesandisincludedin"Othercurrentliabilities"and"Otherdeferredcreditsandliabilities"onthebalancesheet.Cashcollateralpostedreducesgrossliabilitybalancesandisincludedin"Othercurrentassets"and"Otherassets"onthe balancesheet.
107 ConcentrationsofCreditRiskIndeterminingourconcentrationsofcreditriskrelatedtoderivativeinstruments,wereviewourindividualcounterpartiesandcategorizeeachcounterpartyintogroupingsaccordingtotheprimarybusinessinwhicheachengages.Wecalculatemaximumexposuresbasedonthegrossfairvalueoffinancialinstruments,includingNPNSandotheraccrualcontracts.Asof December31,2014,ifcounterpartygroupsweretofailcompletelytoperformoncontracts,Ameren,AmerenMissouri,and AmerenIllinois'maximumexposurewas$5million,$5million,and$-million,respectively.Thepotentiallossoncounterparty exposuresisreducedbytheapplicationofmasternettingarrangementsandcollateralheld,totheextentofreducingthe exposuretozero.AsofDecember31,2014,thepotentiallossafterconsiderationoftheapplicationofmasternetting arrangementsandcollateralheldforAmeren,AmerenMissouri,andAmerenIllinoiswas$5million,$5million,and$-million, respectively.DerivativeInstrumentswithCreditRisk-RelatedContingentFeaturesOurcommoditycontractscontaincollateralprovisionstiedtotheAmerenCompanies'creditratings.Ifweweretoexperienceanadversechangeinourcreditratings,orifacounterpartywithreasonablegroundsforuncertaintyregardingperformanceofanobligationrequestedadequateassuranceofperformance,additionalcollateralpostingsmightberequired.Thefollowingtablepresents,asofDecember31,2014,theaggregatefairvalueofallderivativeinstrumentswithcreditrisk-relatedcontingentfeaturesinagrossliabilityposition,thecashcollateralposted,andtheaggregateamountofadditional collateralthatcouldberequiredtobepostedwithcounterparties.Theadditionalcollateralrequiredisthenetliabilitypositionallowedunderthemasternettingarrangementsassuming(1)thecreditrisk-relatedcontingentfeaturesunderlyingthese arrangementsweretriggeredonDecember31,2014,and(2)thosecounterpartieswithrightstodosorequestedcollateral.AggregateFairValueofDerivativeLiabilities (a)CashCollateralPostedPotentialAggregateAmountofAdditionalCollateralRequired (b)AmerenMissouri
.....................................$96$4$88AmerenIllinois
.......................................74-71 Ameren.............................................$170$4$159(a)PriortoconsiderationofmasternettingarrangementsandincludingNPNSandotheraccrualcontractexposures.(b)Ascollateralrequirementswithcertaincounterpartiesarebasedonmasternettingarrangements,theaggregateamountofadditionalcollateralrequiredtobepostedisdeterminedafterconsiderationoftheeffectsofsucharrangements.NOTE8-FAIRVALUEMEASUREMENTSFairvalueisdefinedastheexchangepricethatwouldbereceivedforanassetorpaidtotransferaliability(anexitprice)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.Level1assetsand liabilitiesareprimarilyexchange-tradedderivativesand assets,includingcashandcashequivalentsandlisted equitysecurities,suchasthoseheldinAmerenMissouri's nucleardecommissioningtrustfund.ThemarketapproachisusedtomeasurethefairvalueofequitysecuritiesheldinAmerenMissouri'snuclear decommissioningtrustfund.Equitysecuritiesinthisfund arerepresentativeoftheS&P500index,excluding securitiesofAmerenCorporation,ownersand/oroperators ofnuclearpowerplantsandthetrusteeandinvestment managers.TheS&P500indexcomprisesstocksoflarge-capitalizationcompanies.Level2:Market-basedinputscorroboratedbythird-partybrokersorexchangesbasedontransactedmarket data.Level2assetsandliabilitiesincludecertainassets heldinAmerenMissouri'snucleardecommissioningtrust fund,includingcorporatebondsandotherfixed-income securities,UnitedStatesTreasuryandagencysecurities, andcertainover-the-counterderivativeinstruments, includingnaturalgasandfinancialpowertransactions.Fixedincomesecuritiesarevaluedusingpricesfromindependentindustryrecognizeddatavendorswhoprovide valuesthatareeitherexchange-basedormatrix-based.The fairvaluemeasurementsoffixedincomesecurities classifiedasLevel2arebasedoninputsotherthanquoted pricesthatareobservablefortheassetorliability.Examples arematrixpricing,marketcorroboratedpricing,andinputs suchasyieldcurvesandindices.Level2fixedincome securitiesinthenucleardecommissioningtrustfundare primarilycorporatebonds,asset-backedsecuritiesand UnitedStatesagencybonds.
108 DerivativeinstrumentsclassifiedasLevel2arevaluedbycorroboratedobservableinputs,suchaspricingservicesorpricesfromsimilarinstrumentsthattradeinliquid markets.Ourdevelopmentandcorroborationprocess entailsobtainingmultiplequotesorpricesfromoutside sources.Toderiveourforwardviewtopriceourderivative instrumentsatfairvalue,weaveragethemidpointsofthe bid/askspreads.Tovalidateforwardpricesobtainedfrom outsideparties,wecomparethepricingtorecentlysettled markettransactions.Additionally,areviewofallsourcesis performedtoidentifyanyanomaliesorpotentialerrors.
Further,weconsiderthevolumeoftransactionsoncertain tradingplatformsinourreasonablenessassessmentofthe averagedmidpoint.Naturalgasderivativecontractsare valuedbaseduponexchangeclosingpriceswithout significantunobservableadjustments.Powerderivatives contractsarevaluedbasedupontheuseofmultipleforward pricesprovidedbythirdparties.Thepricesareaveraged andshapedtoamonthlyprofilewhenneededwithout significantunobservableadjustments.Level3:Unobservableinputsthatarenotcorroboratedbymarketdata.Level3assetsandliabilitiesarevaluedby internallydevelopedmodelsandassumptionsor methodologiesthatusesignificantunobservableinputs.
Level3assetsandliabilitiesincludederivativeinstruments thattradeinlessliquidmarkets,wherepricingislargely unobservable.WevalueLevel3instrumentsbyusing pricingmodelswithinputsthatareoftenunobservablein themarket,aswellascertaininternalassumptions.Our developmentandcorroborationprocessentailsobtaining multiplequotesorpricesfromoutsidesources.Asapartof ourreasonablenessreview,anevaluationofallsourcesis performedtoidentifyanyanomaliesorpotentialerrors.Weperformananalysiseachquartertodeterminetheappropriatehierarchyleveloftheassetsandliabilities subjecttofairvaluemeasurements.Financialassetsand liabilitiesareclassifiedintheirentiretyaccordingtothe lowestlevelofinputthatissignificanttothefairvalue measurement.Allassetsandliabilitieswhosefairvalue measurementisbasedonsignificantunobservableinputs areclassifiedasLevel3.ThefollowingtabledescribesthevaluationtechniquesandunobservableinputsforthefairvalueoffinancialassetsandliabilitiesclassifiedasLevel3inthefairvaluehierarchyfortheperiodendedDecember31,2014:FairValue Weighted AverageAssetsLiabilitiesValuationTechnique(s)UnobservableInputRangeLevel3Derivativeassetandliability-commoditycontracts (a):AmerenFueloils$2$(8)OptionmodelVolatilities(%)(b)3-39 32DiscountedcashflowAmerenMissouricreditrisk(%)(b)(c)0.43 (d)Escalationrate(%)(e)(f)5 (d)NaturalGas1(2)OptionmodelVolatilities(%)(b)31-144 63Nodalbasis($/mmbtu)(e)(0.40)-0(0.20)DiscountedcashflowNodalbasis($/mmbtu)(e)(0.40)-0.10(0.20)Counterpartycreditrisk(%)(b)(c)0.43-13 3AmerenMissouriandAmerenIllinoiscreditrisk(%)(b)(c)0.43 (d)Power (g)11(144)DiscountedcashflowAverageforwardpeakandoff-peak pricing-forwards/swaps($/MWh)(h)27-50 32Estimatedauctionpricefor
FTRs($/MW)(e)(1,833)-2,743171Nodalbasis($/MWh)(e)(6)-0 (2)Counterpartycreditrisk(%)(b)(c)0.26 (d)AmerenMissouriandAmerenIllinois creditrisk(%)(b)(c)0.43 (d)Fundamentalenergyproduction
modelEstimatedfuturegas
prices($/mmbtu)(e)4-5 4Escalationrate(%)(e)(i)0-1 1ContractpriceallocationEstimatedrenewableenergycredit costs($/credit)(e)5-7 6Uranium-(2)DiscountedcashflowAverageforwarduranium
pricing($/pound)(e)35-40 36 109 FairValue Weighted AverageAssetsLiabilitiesValuationTechnique(s)UnobservableInputRange Ameren MissouriFueloils$2$(8)OptionmodelVolatilities(%)(b)3-39 32DiscountedcashflowAmerenMissouricreditrisk(%)(b)(c)0.43 (d)Escalationrate(%)(e)(f)5 (d)NaturalGas-(1)OptionmodelVolatilities(%)(b)31-144 53Nodalbasis($/mmbtu)(e)(0.40)-0(0.30)DiscountedcashflowNodalbasis($/mmbtu)(e)(0.10)(d)Counterpartycreditrisk(%)(b)(c)0.57-13 5AmerenMissouricreditrisk(%)(b)(c)0.43 (d)Power (g)11(2)DiscountedcashflowAverageforwardpeakandoff-peak pricing-forwards/swaps($/MWh)(b)27-50 32Estimatedauctionpricefor
FTRs($/MW)(e)(1,833)-2,743171Counterpartycreditrisk(%)(b)(c)0.26 (d)AmerenMissouricreditrisk(%)(b)(c)0.43 (d)Uranium-(2)DiscountedcashflowAverageforwarduranium pricing($/pound)(e)35-40 36 Ameren IllinoisNaturalGas$1$(1)Optionmodel Volatilities(%)(b)50-144 94Nodalbasis($/mmbtu)(e)(0.10)-0(0.10)DiscountedcashflowNodalbasis($/mmbtu)(e)(0.40)-0.10(0.20)Counterpartycreditrisk(%)(b)(c)0.43-2 0.83AmerenIllinoiscreditrisk(%)(b)(c)0.43 (d)Power (g)-(142)DiscountedcashflowAverageforwardpeakandoff-peak pricing-forwards/swaps($/MWh)(e)27-38 32Nodalbasis($/MWh)(e)(6)-0 (2)AmerenIllinoiscreditrisk(%)(b)(c)0.43 (d)Fundamentalenergyproduction
modelEstimatedfuturegas
prices($/mmbtu)(e)4-5 4Escalationrate(%)(e)(i)0-1 1ContractpriceallocationEstimatedrenewableenergycredit costs($/credit)(e)5-7 6(a)Thederivativeassetandliabilitybalancesarepresentednetofcounterpartycreditconsiderations.
(b)Generally,significantincreases(decreases)inthisinputinisolationwouldresultinasignificantlylower(higher)fairvaluemeasurement.
(c)Counterpartycreditriskisappliedonlytocounterpartieswithderivativeassetbalances.AmerenMissouriandAmerenIllinoiscreditriskisappliedonlytocounterpartieswithderivativeliabilitybalances.(d)Notapplicable.
(e)Generally,significantincreases(decreases)inthisinputinisolationwouldresultinasignificantlyhigher(lower)fairvaluemeasurement.
(f)Escalationrateappliestofueloilprices2017andbeyond.
(g)Powervaluationsusevisiblethird-partypricingevaluatedbymonthforpeakandoff-peakdemandthrough2018.Valuationsbeyond2018usefundamentallymodeledpricingbymonthforpeakandoff-peakdemand.(h)ThebalanceatAmereniscomprisedofAmerenMissouriandAmerenIllinoispowercontracts,whichresponddifferentlytounobservableinputchangesduetotheiropposingpositions.Assuch,refertothepowersensitivityanalysisforeachcompanyabove.(i)Escalationrateappliestopowerprices2026andbeyond.
110 ThefollowingtabledescribesthevaluationtechniquesandunobservableinputsforthefairvalueoffinancialassetsandliabilitiesclassifiedasLevel3inthefairvaluehierarchyasofDecember31,2013:FairValue Weighted AverageAssetsLiabilitiesValuationTechniqueUnobservableInputRangeLevel3Derivativeassetandliability-commoditycontracts (a):AmerenFueloils$8$(3)OptionmodelVolatilities(%)(b)10-3516DiscountedcashflowCounterpartycreditrisk(%)(c)(d)0.26-21 Power (e)21(110)DiscountedcashflowAverageforwardpeakandoff-peakpricing-forwards/swaps($/MWh)(c)25-5132Estimatedauctionpricefor FTRs($/MW)(b)(1,594)-945305Nodalbasis($/MWh)(c)(3)-(1)(2)Counterpartycreditrisk(%)(c)(d)0.39-0.500.42AmerenMissouriandAmerenIllinois creditrisk(%)(c)(d)2 (f)Fundamentalenergyproduction
modelEstimatedfuturegasprices($/mmbtu)(b)4-5 5Escalationrate(%)(b)(g)3-4 4ContractpriceallocationEstimatedrenewableenergycredit costs($/credit)(b)5-7 6Uranium-(6)DiscountedcashflowAverageforwarduranium
pricing($/pound)(b)34-4136 Ameren MissouriFueloils$8$(3)OptionmodelVolatilities(%)(b)10-3516DiscountedcashflowCounterpartycreditrisk(%)(c)(d)0.26-21 Power (e)21(2)DiscountedcashflowAverageforwardpeakandoff-peak pricing-forwards/swaps($/MWh)(c)25-5140Estimatedauctionpricefor
FTRs($/MW)(b)(1,594)-945305Nodalbasis($/MWh)(c)(3)-(1)(2)Counterpartycreditrisk(%)(c)(d)0.39-0.500.42AmerenMissouricreditrisk(%)(c)(d)2 (f)Uranium-(6)DiscountedcashflowAverageforwarduranium
pricing($/pound)(b)34-4136 Ameren Illinois Power (e)$-$(108)DiscountedcashflowAverageforwardpeakandoff-peak pricing-forwards/swaps($/MWh)(b)27-3630Nodalbasis($/MWh)(b)(4)-0 (2)AmerenIllinoiscreditrisk(%)(c)(d)2 (f)Fundamentalenergyproduction
modelEstimatedfuturegasprices($/mmbtu)(b)4-5 5Escalationrate(%)(b)(g)3-4 4ContractpriceallocationEstimatedrenewableenergycredit costs($/credit)(b)5-7 6(a)Thederivativeassetandliabilitybalancesarepresentednetofcounterpartycreditconsiderations.
(b)Generally,significantincreases(decreases)inthisinputinisolationwouldresultinasignificantlyhigher(lower)fairvaluemeasurement.
(c)Generally,significantincreases(decreases)inthisinputinisolationwouldresultinasignificantlylower(higher)fairvaluemeasurement.
(d)Counterpartycreditriskisappliedonlytocounterpartieswithderivativeassetbalances.AmerenMissouriandAmerenIllinoiscreditriskisappliedonlytocounterpartieswithderivativeliabilitybalances.(e)Powervaluationsusevisiblethird-partypricingevaluatedbymonthforpeakandoff-peakdemandthrough2017.Valuationsbeyond2017usefundamentallymodeledpricingbymonthforpeakandoff-peakdemand.(f)Notapplicable.
(g)Escalationrateappliestopowerprices2026andbeyond.Inaccordancewithapplicableauthoritativeaccountingguidance,weconsidernonperformanceriskinourvaluationofderivativeinstrumentsbyanalyzingthecreditstandingof ourcounterpartiesandconsideringanycounterpartycredit enhancements(e.g.,collateral).Theguidancealsorequires thatthefairvaluemeasurementofliabilitiesreflectthe nonperformanceriskofthereportingentity,asapplicable.
Therefore,wehavefactoredtheimpactofourcreditstanding,aswellasanypotentialcreditenhancements,into thefairvaluemeasurementofbothderivativeassetsand derivativeliabilities.Includedinourvaluation,andbasedon currentmarketconditions,isavaluationadjustmentfor counterpartydefaultderivedfrommarketdatasuchasthe priceofcreditdefaultswaps,bondyields,andcredit ratings.Nogainsorlossesrelatedtovaluationadjustments forcounterpartydefaultriskwererecordedatAmeren, 111 AmerenMissouri,orAmerenIllinoisin2014,2013or2012.AtDecember31,2014,thecounterpartydefaultriskliability valuationadjustmentrelatedtoderivativecontractstotaled
$1million,lessthan$1million,and$1million,forAmeren, AmerenMissouri,andAmerenIllinois,respectively.AtDecember31,2013,thecounterpartydefaultriskliability valuationadjustmentrelatedtoderivativecontractstotaled
$3million,lessthan$1million,and$3millionforAmeren, AmerenMissouri,andAmerenIllinois,respectively.Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchy,ourassetsandliabilitiesmeasuredatfairvalueonarecurringbasisasofDecember31,2014:QuotedPricesinActiveMarketsforIdenticalAssetsorLiabilities(Level1)SignificantOtherObservableInputs(Level2)Significant Other Unobservable Inputs(Level3)Total Assets:AmerenDerivativeassets-commoditycontracts (a):Fueloils.................................$-$-$2$2Naturalgas...............................-112 Power...................................-41115Totalderivativeassets-commoditycontracts........$-$5$14$19Nucleardecommissioningtrustfund:Cashandcashequivalents...................$1$-$-$1Equitysecurities:U.S.largecapitalization.................364--364Debtsecurities:Corporatebonds.......................-63-63Municipalbonds.......................-2-2U.S.treasuryandagencysecurities........-102-102Asset-backedsecurities.................-10-10 Other................................-5-5Totalnucleardecommissioningtrustfund...........$365$182$-$547 (b)TotalAmeren.................................$365$187$14$566 Ameren MissouriDerivativeassets-commoditycontracts (a):Fueloils.................................$-$-$2$2Naturalgas...............................-1-1 Power...................................-41115Totalderivativeassets-commoditycontracts........$-$5$13$18Nucleardecommissioningtrustfund:Cashandcashequivalents...................$1$-$-$1Equitysecurities:U.S.largecapitalization.................364--364Debtsecurities:Corporatebonds.......................-63-63Municipalbonds.......................-2-2U.S.treasuryandagencysecurities........-102-102Asset-backedsecurities.................-10-10 Other................................-5-5Totalnucleardecommissioningtrustfund...........$365$182$-$547 (b)TotalAmerenMissouri..........................$365$187$13$565 Ameren IllinoisDerivativeassets-commoditycontracts (a):Naturalgas...............................$-$-$1$1 Liabilities:
AmerenDerivativeliabilities-commoditycontracts (a):Fueloils.................................$21$-$8$29Naturalgas...............................153256 Power...................................-1144145 Uranium.................................--22TotalAmeren.................................$22$54$156$232 Ameren MissouriDerivativeliabilities-commoditycontracts (a):Fueloils.................................$21$-$8$29Naturalgas...............................110112 Power...................................-123 Uranium.................................--22TotalAmerenMissouri..........................$22$11$13$46 Ameren IllinoisDerivativeliabilities-commoditycontracts (a):Naturalgas...............................$-$43$1$44 Power...................................--142142TotalAmerenIllinois............................$-$43$143$186(a)Thederivativeassetandliabilitybalancesarepresentednetofcounterpartycreditconsiderations.(b)Balanceexcludes$2millionofreceivables,payables,andaccruedincome,net.
112 Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchy,ourassetsandliabilitiesmeasuredatfairvalueonarecurringbasisasofDecember31,2013:QuotedPricesinActiveMarketsforIdenticalAssetsorLiabilities(Level1)SignificantOtherObservableInputs(Level2)Significant Other Unobservable Inputs(Level3)Total Assets:AmerenDerivativeassets-commoditycontracts (a):Fueloils................................$1$-$8$9Naturalgas..............................-2-2 Power..................................-22123Totalderivativeassets-commoditycontracts.......$1$4$29$34Nucleardecommissioningtrustfund:Cashandcashequivalents..................$3$-$-$3Equitysecurities:U.S.largecapitalization................332--332Debtsecurities:Corporatebonds......................-52-52Municipalbonds......................-2-2U.S.treasuryandagencysecurities.......-94-94Asset-backedsecurities................-10-10 Other...............................-1-1Totalnucleardecommissioningtrustfund..........$335$159$-$494TotalAmeren................................$336$163$29$528 Ameren MissouriDerivativeassets-commoditycontracts (a):Fueloils................................$1$-$8$9Naturalgas..............................-1-1 Power..................................-22123Totalderivativeassets-commoditycontracts.......$1$3$29$33Nucleardecommissioningtrustfund:Cashandcashequivalents..................$3$-$-$3Equitysecurities:U.S.largecapitalization................332--332Debtsecurities:Corporatebonds......................-52-52Municipalbonds......................-2-2U.S.treasuryandagencysecurities.......-94-94Asset-backedsecurities................-10-10 Other...............................-1-1Totalnucleardecommissioningtrustfund..........$335$159$-$494TotalAmerenMissouri.........................$336$162$29$527 Ameren IllinoisDerivativeassets-commoditycontracts (a):Naturalgas..............................$-$1$-$1 Liabilities:
AmerenDerivativeliabilities-commoditycontracts (a):Fueloils................................$-$-$3$3Naturalgas..............................354-57 Power..................................-2110112 Uranium................................--66TotalAmeren................................$3$56$119$178 Ameren MissouriDerivativeliabilities-commoditycontracts (a):Fueloils................................$-$-$3$3Naturalgas..............................38-11 Power..................................-224 Uranium................................--66TotalAmerenMissouri.........................$3$10$11$24 Ameren IllinoisDerivativeliabilities-commoditycontracts (a):Naturalgas..............................$-$46$-$46 Power..................................--108108TotalAmerenIllinois...........................$-$46$108$154(a)Thederivativeassetandliabilitybalancesarepresentednetofcounterpartycreditconsiderations.
113 ThefollowingtablesummarizesthechangesinthefairvalueoffinancialassetsandliabilitiesclassifiedasLevel3inthefairvaluehierarchyfortheyearendedDecember31,2014:NetDerivativeCommodityContracts Ameren Missouri AmerenIllinoisAmerenFueloils:BeginningbalanceatJanuary1,2014......................................................$5$(a)$5Realizedandunrealizedgains(losses)includedinregulatoryassets/liabilities:.....................(9)(a)(9)
Settlements........................................................................(2)(a)(2)EndingbalanceatDecember31,2014......................................................$(6)$(a)$(6)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2014.............$(6)$(a)$(6)Naturalgas:
BeginningbalanceatJanuary1,2014......................................................$-$-$-Realizedandunrealizedgains(losses)includedinregulatoryassets/liabilities:.....................-11 Purchases.........................................................................-(2)(2)
Sales.............................................................................(1)-(1)
Settlements........................................................................-1 1EndingbalanceatDecember31,2014......................................................$(1)$-$(1)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2014.............$-$2$2 Power:
BeginningbalanceatJanuary1,2014......................................................$19$(108)$(89)Realizedandunrealizedgains(losses)includedinregulatoryassets/liabilities:
.....................(14)(39)(53)
Purchases.........................................................................34-34 Sales.............................................................................(1)-(1)
Settlements
........................................................................(29)5(24)EndingbalanceatDecember31,2014......................................................$9$(142)$(133)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2014.............$-$(43)$(43)Uranium:
BeginningbalanceatJanuary1,2014......................................................$(6)$(a)$(6)Realizedandunrealizedgains(losses)includedinregulatoryassets/liabilities:.....................(1)(a)(1)
Settlements........................................................................5(a)5EndingbalanceatDecember31,2014......................................................$(2)$(a)$(2)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2014.............$(1)$(a)$(1)(a)Notapplicable.ThefollowingtablesummarizesthechangesinthefairvalueoffinancialassetsandliabilitiesclassifiedasLevel3inthefairvaluehierarchyfortheyearendedDecember31,2013:NetDerivativeCommodityContracts Ameren Missouri AmerenIllinoisAmerenFueloils:
BeginningbalanceatJanuary1,2013.......................................................$5$(a)$5 Purchases..........................................................................3(a)3 Sales..............................................................................(1)(a)(1)
Settlements.........................................................................(2)(a)(2)EndingbalanceatDecember31,2013......................................................$5$(a)$5Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2013..............$-$(a)$-Naturalgas:
BeginningbalanceatJanuary1,2013.......................................................$-$-$-Realizedandunrealizedgains(losses)includedinregulatoryassets/liabilities:.....................-(1)(1)
Purchases..........................................................................-11EndingbalanceatDecember31,2013......................................................$-$-$-Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2013..............$-$-$-
Power:
BeginningbalanceatJanuary1,2013.......................................................$11$(111)$(100)Realizedandunrealizedgains(losses)includedinregulatoryassets/liabilities:.....................3(18)(15)Purchases..........................................................................40-40 Settlements
.........................................................................(36)21(15)TransfersintoLevel3.................................................................(3)-(3)TransfersoutofLevel3................................................................4-4EndingbalanceatDecember31,2013......................................................$19$(108)$(89)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2013..............$(1)$(24)$(25)Uranium:
BeginningbalanceatJanuary1,2013.......................................................$(2)$(a)$(2)Realizedandunrealizedgains(losses)includedinregulatoryassets/liabilities:.....................(3)(a)(3)
Purchases..........................................................................(2)(a)(2)
Settlements.........................................................................1(a)1EndingbalanceatDecember31,2013......................................................$(6)$(a)$(6)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2013..............$(2)$(a)$(2)(a)Notapplicable.
114 TransfersinoroutofLevel3representeither(1)existingassetsandliabilitiesthatwerepreviouslycategorizedasahigherlevel,butwererecategorizedtoLevel3becausetheinputstothemodelbecameunobservableduringtheperiodor(2)existingassetsandliabilitiesthatwerepreviouslyclassifiedasLevel3,butwererecategorizedtoahigherlevelbecausethe lowestsignificantinputbecameobservableduringtheperiod.TransfersbetweenLevel2andLevel3forpowerderivativeswereprimarilycausedbychangesinavailabilityoffinancialtradesobservableonelectronicexchangesbetweentheperiods.
AnyreclassificationsarereportedastransfersoutofLevel3atthefairvaluemeasurementreportedatthebeginningofthe periodinwhichthechangesoccur.FortheyearsendedDecember31,2014and2013,therewerenotransfersbetweenLevel 1andLevel2relatedtoderivativecommoditycontracts.FortheyearendedDecember31,2014,therewerenotransfers betweenLevel2andLevel3relatedtoderivativecommoditycontracts.FortheyearendedDecember31,2013,therewere
$(3)millionoftransfersoutofLevel2intoLevel3and$4millionoftransfersintoLevel2outofLevel3relatedtopower contractsatAmerenandAmerenMissouri.SeeNote11-RetirementBenefitsforthefairvaluehierarchytablesdetailingAmeren'spensionandpostretirementplanassetsasofDecember31,2014,aswellasatablesummarizingthechangesinLevel3planassetsduring2014.TheAmerenCompanies'carryingamountsofcashandcashequivalentsapproximatefairvaluebecauseoftheshort-termnatureoftheseinstruments.TheyareconsideredtobeLevel1inthefairvaluehierarchy.Ameren'sandAmerenMissouri's carryingamountsofinvestmentsindebtsecuritiesrelatedtothetwoCTsfromthecityofBowlingGreenandAudrainCounty approximatefairvalue.Theseinvestmentsareclassifiedasheld-to-maturity.TheseinvestmentsareconsideredLevel2inthe fairvaluehierarchy,astheyarevaluedbasedonsimilarmarkettransactions.TheAmerenCompanies'short-termborrowings alsoapproximatefairvaluebecauseoftheirshort-termnature.Short-termborrowingsareconsideredtobeLevel2inthefair valuehierarchy,astheyarevaluedbasedonmarketratesforsimilarmarkettransactions.Theestimatedfairvalueoflong-term debtandpreferredstockisbasedonthequotedmarketpricesforsameorsimilarissuancesforcompanieswithsimilarcredit profilesoronthecurrentratesofferedtotheAmerenCompaniesforsimilarfinancialinstruments,whichfairvalue measurementisconsideredLevel2inthefairvaluehierarchy.Thefollowingtablepresentsthecarryingamountsandestimatedfairvaluesofourlong-termdebtandpreferredstockatDecember31,2014and2013:
2014 2013CarryingAmountFairValueCarryingAmountFairValue Ameren: (a)Long-termdebtandcapitalleaseobligations(includingcurrentportion)
.....$6,240$7,135$6,038$6,584Preferredstock
.................................................142122142118AmerenMissouri:Long-termdebtandcapitalleaseobligations(includingcurrentportion)
.....$3,999$4,518$3,757$4,124Preferredstock
.................................................80738071AmerenIllinois:
Long-termdebt(includingcurrentportion)
............................$2,241$2,517$1,856$2,028Preferredstock
.................................................62496247(a)Preferredstockisrecordedin"NoncontrollingInterests"ontheconsolidatedbalancesheet.NOTE9-NUCLEARDECOMMISSIONINGTRUSTFUND INVESTMENTSAmerenMissourihasinvestmentsindebtandequitysecuritiesthatareheldinatrustfundforthepurposeoffundingthedecommissioningofitsCallawayenergycenter.
Wehaveclassifiedtheseinvestmentsasavailableforsale, andwehaverecordedallsuchinvestmentsattheirfair marketvalueatDecember31,2014,and2013.See Note10-CallawayEnergyCenterforadditional
information.Investmentsinthenucleardecommissioningtrustfundhaveatargetallocationof60%to70%inequity securities,withthebalanceinvestedindebtsecurities.ThefollowingtablepresentsproceedsfromthesaleandmaturitiesofinvestmentsinAmerenMissouri'snuclear decommissioningtrustfundandthegrossrealizedgainsandlossesresultingfromthosesalesfortheyearsended December31,2014,2013,and2012:201420132012Proceedsfromsalesand maturities
.................$391$196$384Grossrealizedgains
...........
7 76Grossrealizedlosses
..........
2 52Netrealizedandunrealizedgainsandlossesaredeferredandrecordedasregulatoryassetsorregulatory liabilitiesonAmeren'sandAmerenMissouri'sbalance sheets.Thisreportingisconsistentwiththemethodusedto accountforthedecommissioningcostsrecoveredinrates.
Gainsorlossesassociatedwithassetsinthetrustfund couldresultinlowerorhigherfundingrequirementsfor decommissioningcosts,whichareexpectedtobereflected inelectricratespaidbyAmerenMissouri'scustomers.See Note2-RateandRegulatoryMatters.
115 ThefollowingtablepresentsthecostsandfairvaluesofinvestmentsindebtandequitysecuritiesinAmerenMissouri'snucleardecommissioningtrustfundatDecember31,2014and2013:SecurityTypeCostGrossUnrealizedGainGrossUnrealizedLossFairValue 2014Debtsecurities
....................................$175$7$(a)$182Equitysecurities
..................................
138 230 4 364 Cash...........................................1--1 Other (b).........................................2--2 Total...........................................$316$237$4$549 2013 Debtsecurities....................................$157$4$2$159Equitysecurities..................................1371994332 Cash...........................................3--3 Other (b).........................................(a)
--(a)Total...........................................$297$203$6$494(a)Amountlessthan$1million.(b)Representspayablesrelatingtopendingsecuritypurchases,netofreceivablesrelatedtopendingsecuritysalesandinterestreceivables.ThefollowingtablepresentsthecostsandfairvaluesofinvestmentsindebtsecuritiesinAmerenMissouri'snucleardecommissioningtrustfundaccordingtotheircontractualmaturitiesatDecember31,2014:
Cost Fair ValueLessthan5years......................................................................................$98$995yearsto10years.....................................................................................4142Dueafter10years......................................................................................3641 Total................................................................................................$175$182Wehaveunrealizedlossesrelatingtocertainavailable-for-saleinvestmentsincludedinourdecommissioningtrustfund,recordedasregulatoryassetsasdiscussedabove.Decommissioningwillnotoccuruntiltheoperatinglicenseforournuclearenergycenterexpires.AmerenMissourisubmittedalicenseextensionapplicationtotheNRCtoextendtheCallawayenergy center'soperatinglicenseto2044.Thefollowingtablepresentsthefairvalueandthegrossunrealizedlossesoftheavailable-for-salesecuritiesheldinAmerenMissouri'snucleardecommissioningtrustfund.Theyareaggregatedbyinvestmentcategoryand thelengthoftimethatindividualsecuritieshavebeeninacontinuousunrealizedlosspositionatDecember31,2014:Lessthan12Months12MonthsorGreater TotalFairValue Gross UnrealizedLossesFairValue Gross UnrealizedLossesFairValue Gross Unrealized LossesDebtsecurities.....................................$28$(a)$8$(a)$36$(a)Equitysecurities....................................6153114 Total.............................................$34$1$13$3$47$4(a)Amountlessthan$1million.NOTE10-CALLAWAYENERGYCENTERUndertheNWPA,theDOEisresponsiblefordisposingofspentnuclearfuelfromtheCallawayenergycenterand othercommercialnuclearenergycenters.UndertheNWPA, Amerenandotherutilitiesthatownandoperatethose energycentersareresponsibleforpayingthedisposal costs.TheNWPAestablishedthefeethattheseutilitiespay thefederalgovernmentfordisposingofthespentnuclear fuelatonemill,orone-tenthofonecent,foreach kilowatthourgeneratedandsoldbythoseplants.TheNWPA alsorequirestheDOEannuallytoreviewthenuclearwaste feeagainstthecostofthenuclearwastedisposalprogram andtoproposetotheUnitedStatesCongressanyfee adjustmentnecessarytooffsetthecostsoftheprogram.As requiredbytheNWPA,AmerenMissouriandotherutilities haveenteredintostandardcontractswiththefederal government.Thegovernment,representedbytheDOE,is responsibleforimplementingtheseprovisionsoftheNWPA.ConsistentwiththeNWPAanditsstandard contract,AmerenMissourihadhistoricallycollectedone millfromitselectriccustomersforeachkilowatthourof electricitythatitgeneratesandsellsfromitsCallaway energycenter.However,asdescribedbelow,Ameren Missourihassuspendedcollectionofthisfee.AlthoughboththeNWPAandthestandardcontractstatedthatthefederalgovernmentwouldbegintodispose ofspentnuclearfuelby1998,thefederalgovernmentisnot meetingitsdisposalobligation.AmerenMissourihas sufficientinstalledcapacityattheCallawayenergycenterto storeitsspentnuclearfuelgeneratedthrough2020andit hasthecapabilityforadditionalstoragecapacityforspent nuclearfuelgeneratedthroughtheendoftheenergy center'scurrentlicensedlife.TheDOE'sdelayincarrying outitsobligationtodisposeofspentnuclearfuelfromthe Callawayenergycenterisnotexpectedtoadverselyaffect thecontinuedoperationsoftheenergycenter.
116 InJanuary2013,theDOEissueditsplanforthemanagementanddisposalofspentnuclearfuel.TheDOE'splancallsforapilotinterimstoragefacilitytobegin operationwithaninitialfocusonacceptingspentnuclear fuelfromshutdownreactorsitesby2021.By2025,alarger interimstoragefacilitywouldbeavailable,potentiallyco-locatedwiththepilotfacilityonageologicrepository.The planalsoproposestobeginoperationofapermanent geologicalrepositoryby2048.Becausethefederalgovernmentisnotmeetingitsdisposalobligation,theNuclearEnergyInstitute,anumber ofindividualutilities,andtheNationalAssociationof RegulatoryUtilityCommissionerssuedtheDOEinthe UnitedStatesCourtofAppealsfortheDistrictofColumbia Circuit,seekingthesuspensionoftheonemillnuclear wastefee.InNovember2013,thecourtorderedtheDOEto submitaproposaltotheUnitedStatesCongresstoreduce thefeetozero.InJanuary2014,theDOEsubmittedthat proposal,anditbecameeffectiveinMay2014.Sincethe nuclearwastefeewaspreviouslyincludedinAmeren Missouri'sFAC,thecostreductionwillbepassedonto electricutilitycustomerswithnomaterialeffecton Ameren'sorAmerenMissouri'snetincome.AsaresultoftheDOE'sfailuretobegintodisposeofspentnuclearfuelfromcommercialnuclearenergycenters andfulfillitscontractualobligations,AmerenMissouriand othernuclearenergycenterownershavealsosuedtheDOE torecovercostsincurredforongoingstorageoftheirspent fuel.AmerenMissourifiledabreachofcontractlawsuitto recovercoststhatitincurredthrough2009.Thelawsuit soughtreimbursementforthecostofrerackingtheCallaway energycenter'sspentfuelpool,forcertainNRCfees,andfor MissouriadvaloremtaxesthatAmerenMissouriwouldnot haveincurredhadtheDOEperformeditscontractual obligations.Thepartiesenteredintoasettlementagreement thatprovidesforannualrecoveryofadditionalspentfuel storageandrelatedcostsincurredfrom2010through2016, withtheabilitytoextendtherecoveryperiodasmutually agreeduponbytheparties.Includedinthese reimbursementsarecostsrelatedtoadryspentfuelstorage facilitythatAmerenMissouriisconstructingatitsCallaway energycenter.AmerenMissouriintendstobegintransferring spentfuelassembliestothisfacilityin2015.Ameren Missouriwillcontinuetoapplyforreimbursementfromthe DOEforthecosttoconstructandoperatethedryspentfuel storagefacilityalongwithrelatedallowablecosts.InDecember2011,AmerenMissourisubmittedalicenseextensionapplicationtotheNRCtoextendits Callawayenergycenter'soperatinglicensefrom2024to 2044.ThereisnodeadlinebywhichtheNRCmustacton thisapplication.AmongtherulesuponwhichtheNRChas historicallyreliedinapprovinglicenseextensionsarerules dealingwiththestorageofspentnuclearfuelatthereactor siteandwiththeNRC'sconfidencethatpermanentdisposal ofspentnuclearfuelwillbeavailablewhenneeded.Ina June2012decision,theUnitedStatesCourtofAppealsfor theDistrictofColumbiaCircuitvacatedtheserulesand remandedthecasetotheNRC,holdingthattheNRC'sobligationsundertheNationalEnvironmentalPolicyAct requiredamorethoroughenvironmentalanalysisinsupport oftheNRC'swasteconfidencedecision.Asaresult,the NRCstatedthatitwouldnotissuelicensesdependenton thevacatedrulesuntilitappropriatelyaddressedthecourt's remand.InOctober2014,afteritcompletedtherequired environmentalanalysis,theNRClifteditssuspensionon finallicensingdecisions.InFebruary2015,thestaffofthe NRCissueditsrecommendationthattheNRCapprove AmerenMissouri'sapplicationfora20-yearrenewalofthe Callawayenergycenter'soperatinglicense.ElectricutilityratescurrentlychargedtocustomersprovidefortherecoveryoftheCallawayenergycenter's decommissioningcosts,whichincludedecontamination, dismantling,andsiterestorationcosts,overanassumed 40-yearlifeofthenuclearcenter,endingwiththeexpiration oftheenergycenter'scurrentoperatinglicensein2024.
Amountscollectedfromcustomersaredepositedintothe externalnucleardecommissioningtrustfundtoprovidefor theCallawayenergycenter'sdecommissioning.Itisassumed thattheCallawayenergycentersitewillbedecommissioned throughtheimmediatedismantlementmethodandremoved fromservice.AmerenandAmerenMissourihaverecordedan AROfortheCallawayenergycenterdecommissioningcosts atfairvalue,whichrepresentsthepresentvalueofestimated futurecashoutflows.Annualdecommissioningcostsof
$7millionareincludedinthecostsofserviceusedto establishelectricratesforAmerenMissouri'scustomers.
Everythreeyears,theMoPSCrequiresAmerenMissourito fileanupdatedcoststudyandfundinganalysisfor decommissioningitsCallawayenergycenter.Electricrates maybeadjustedatsuchtimestoreflectchangedestimates.
Thelastcoststudyandfundinganalysiswasfiledwiththe MoPSCinSeptember2011.TheMoPSChasauthorizeda delayofthe2014coststudyandfundinganalysisfilinguntil 2015pendingtheoutcomeofAmerenMissouri'soperating licenseextensionapplicationunderreviewbytheNRC.
FollowingtheNRC'sdecisionregardingAmerenMissouri's operatinglicenseextensionapplication,anupdatedcost studyandarevisedfundinganalysiswillbefiled.Rates chargedtocustomerswillbeadjustedaccordingly,as approvedbytheMoPSC,toreflecttheoperatinglicense extensionapplicationdecision,theupdatedcoststudyand therevisedfundinganalysis.Iftheassumedreturnontrust assetsisnotearned,webelievethatitisprobablethatany suchearningsdeficiencywillberecoveredinrates.Thefair valueofthetrustfundforAmerenMissouri'sCallawayenergy centerisreportedas"Nucleardecommissioningtrustfund" inAmeren'sandAmerenMissouri'sbalancesheets.This amountislegallyrestrictedandmaybeusedonlytofundthe costsofnucleardecommissioning.Changesinthefairvalue ofthetrustfundarerecordedasanincreaseordecreaseto thenucleardecommissioningtrustfund,withanoffsetting adjustmenttotherelatedregulatoryliability.SeeNote2-RateandRegulatoryMattersandNote9-NuclearDecommissioningTrustFundInvestments foradditionalinformationrelatedtotheCallawayenergy
center.117 NOTE11-RETIREMENTBENEFITSTheprimaryobjectiveoftheAmerenpensionandpostretirementbenefitplansistoprovideeligibleemployeeswithpensionandpostretirementhealthcareandlife insurancebenefits.Amerenoffersdefinedbenefitpension andpostretirementbenefitplanscoveringsubstantiallyall ofitsemployees.Amerenusesameasurementdateof December31foritspensionandpostretirementbenefit plans.AmerenMissouriandAmerenIllinoiseachparticipate inAmeren'ssingle-employerpensionandother postretirementplans.Ameren'squalifiedpensionplanisthe AmerenRetirementPlan.Amerenalsohasanunfunded nonqualifiedpensionplan,theAmerenSupplemental RetirementPlan,whichisavailableforcertainmanagement employeesandretireestoprovideasupplementalbenefit whentheirqualifiedpensionplanbenefitsarecappedto complywithInternalRevenueCodelimitations.Ameren's otherpostretirementplansaretheAmerenRetireeMedical PlanandtheAmerenGroupLifeInsurancePlan.Only Amerensubsidiariesparticipateintheplanslistedabove.InDecember2013,AmerencompletedthedivestitureofNewAERtoIPH.Inaccordancewiththetransaction agreement,Amerenretainedthepensionobligationsasof December2,2013,associatedwiththecurrentandformer employeesofNewAERanditssubsidiarieswhowere includedintheAmerenRetirementPlanandtheAmeren SupplementalRetirementPlan.Amerenalsoretainedthe postretirementbenefitobligationsassociatedwiththe employeesofNewAERanditssubsidiarieswhowereeligibletoretireatDecember2,2013,andwhowere includedintheAmerenRetireeMedicalPlanandthe AmerenGroupLifeInsurancePlan.Ameren'sunfundedobligationunderitspensionandotherpostretirementbenefitplanswas$710millionand
$461millionasofDecember31,2014,andDecember31, 2013,respectively.Thesenetliabilitiesarerecordedin "Othercurrentliabilities,""Pensionandother postretirementbenefits,"and"Otherassets"onAmeren's consolidatedbalancesheet.Theprimaryfactorcontributing totheincreaseintheunfundedobligationduring2014was a75basispointdecreaseinthepensionandother postretirementbenefitplandiscountratesusedto determinethepresentvalueoftheobligation.Theoffsetto theincreaseintheunfundedobligationwasprimarilyan increaseto"Regulatoryassets"onAmeren's,Ameren Missouri's,andAmerenIllinois'consolidatedbalancesheet.ThefollowingtablepresentsthenetbenefitliabilityrecordedonthebalancesheetsofeachoftheAmeren CompaniesasofDecember31,2014and2013:20142013 Ameren (a).............................$710$461AmerenMissouri
........................
277 191AmerenIllinois
.........................
278 159(a)IncludesamountsforAmerenregistrantandnonregistrant subsidiaries.
118 Amerenrecognizestheunderfundedstatusofitspensionandpostretirementplansasaliabilityonitsconsolidatedbalancesheet,withoffsettingentriestoaccumulatedOCIandregulatoryassets,inaccordancewithauthoritativeaccountingguidance.ThefollowingtablepresentsthefundedstatusofAmeren'spensionandpostretirementbenefitplansasofDecember31,2014and2013.ItalsoprovidestheamountsincludedinregulatoryassetsandaccumulatedOCIat December31,2014and2013,thathavenotbeenrecognizedinnetperiodicbenefitcosts.
2014 2013PensionBenefits (a)Postretirement Benefits (a)PensionBenefits (a)Postretirement Benefits (a)Accumulatedbenefitobligationatendofyear
...............$4,176$(b)$3,698$(b)Changeinbenefitobligation:Netbenefitobligationatbeginningofyear
................$3,900$1,096$4,051$1,157Servicecost
.......................................
79 19 91 22Interestcost
.......................................
183 50 163 46Participantcontributions
..............................
-1 6-1 6Actuarial(gain)loss
.................................
462 84 (207)(76)Curtailmentgain (c)...................................
---(3)Settlement (d).......................................
---(5)Benefitspaid
.......................................
(214)(65)(198)(64)Federalsubsidyonbenefitspaid
........................(b)3 (b)3Netbenefitobligationatendofyear
.......................
4,410 1,203 3,900 1,096Changeinplanassets:Fairvalueofplanassetsatbeginningofyear
..............
3,461 1,074 3,127 938Actualreturnonplanassets
...........................
448 75 376 156Employercontributions
...............................
99 6 156 25Federalsubsidyonbenefitspaid
........................(b)3 (b)3Participantcontributions
..............................
-1 6-1 6Benefitspaid
.......................................
(214)(65)(198)(64)Fairvalueofplanassetsatendofyear
.....................
3,794 1,109 3,461 1,074Fundedstatus-deficiency
..............................
616 94 439 22AccruedbenefitcostatDecember31
......................$616$94$439$22Amountsrecognizedinthebalancesheetconsistof:Noncurrentasset (e)..................................$-$-$-$(9)Currentliability (f)....................................
32 31Noncurrentliability
..................................
613 92 436 30Netliabilityrecognized
...............................$616$94$439$22Amountsrecognizedinregulatoryassetsconsistof:Netactuarial(gain)loss
..............................$452$(7)$282$(71)Priorservicecost(credit)
.............................
(6)(16)(7)(20)Amounts(pretax)recognizedinaccumulatedOCIconsistof:Netactuarial(gain)loss
..............................
29 (5)17 (12)Priorservicecost(credit)
.............................
-(1)-(1)Total.............................................$475$(29)$292$(104)(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.(b)Notapplicable.
(c)EffectivewiththedivestitureofNewAERonDecember2,2013,theliabilityforactivemanagementemployeesofNewAERanditssubsidiariesnoteligibletoretirewereneithertransferredtoIPHnorretainedbyAmeren,whichresultedinacurtailmentgain.SeeNote16-Divestiture TransactionsandDiscontinuedOperationsforadditionalinformationonthedivestiture.(d)EffectivewiththedivestitureofNewAERonDecember2,2013,theliabilityforactiveunionemployeesofNewAERanditssubsidiariesnoteligibletoretirewastransferredtoIPHbasedontheassumptionofthecollectivebargainingagreementsinplace,whichresultedina settlement.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsforadditionalinformationonthedivestiture.(e)Includedin"Otherassets"onAmeren'sconsolidatedbalancesheet.
(f)Includedin"Othercurrentliabilities"onAmeren'sconsolidatedbalancesheet.ThefollowingtablepresentstheassumptionsusedtodetermineourbenefitobligationsatDecember31,2014and2013:PensionBenefitsPostretirementBenefits2014201320142013Discountrateatmeasurementdate
..................................................
4.00%4.75%4.00%4.75%Increaseinfuturecompensation
....................................................
3.50 3.50 3.50 3.50Medicalcosttrendrate(initial)
.....................................................(a)(a)5.00 5.00Medicalcosttrendrate(ultimate)
...................................................(a)(a)5.00 5.00Yearstoultimaterate
.............................................................(a)(a)--(a)Notapplicable 119 Amerendeterminesdiscountrateassumptionsbyidentifyingatheoreticalsettlementportfolioofhigh-qualitycorporatebondssufficienttoprovideforaplan'sprojected benefitpayments.Thesettlementportfolioofbondsis selectedfromapoolofmorethan700high-quality corporatebonds.Asinglediscountrateisthendetermined; thatrateresultsinadiscountedvalueoftheplan'sbenefit paymentsthatequatestothemarketvalueoftheselected bonds.Inaddition,during2014,Amerenadoptedthe SocietyofActuaries2014MortalityTablesReportand MortalityImprovementScale.Theupdatedmortalitytables assumeincreasinglifeexpectanciesforouremployeesand retirees,whichresultedinanincreasetoourpensionand otherpostretirementbenefitobligations.
FundingPensionbenefitsarebasedontheemployees'yearsofserviceandcompensation.Ameren'spensionplansarefundedincompliancewithincometaxregulationsandfederal fundingorregulatoryrequirements.Asaresult,Ameren expectstofunditspensionplanatalevelequaltothegreater ofthepensionexpenseorthelegallyrequiredminimum contribution.ConsideringitsassumptionsatDecember31, 2014,itsinvestmentperformancein2014,anditspension fundingpolicy,Amerenexpectstomakeannualcontributions of$25millionto$115millionineachofthenextfiveyears, withaggregateestimatedcontributionsof$290million.We expectAmerenMissouri'sandAmerenIllinois'portionofthe futurefundingrequirementstobe41%and40%,
respectively.Theseamountsareestimates.Theymaychange basedonactualinvestmentperformance,changesininterest rates,changesinourassumptions,changesingovernment regulations,andanyvoluntarycontributions.Ourfunding policyforpostretirementbenefitsisprimarilytofundthe VoluntaryEmployeeBeneficiaryAssociation(VEBA)truststo matchtheannualpostretirementexpense.Thefollowingtablepresentsthecashcontributionsmadetoourdefinedbenefitretirementplanandtoour postretirementplansduring2014,2013,and2012:PensionBenefitsPostretirementBenefits201420132012201420132012AmerenMissouri
....$41$60$52$3$10$9AmerenIllinois
.....395046 21135 Other.............
194630 1 41 Ameren (a)..........
99156128 62545(a)IncludesamountsforAmerenregistrantandnonregistrant subsidiaries.InvestmentStrategyandPoliciesAmerenmanagesplanassetsinaccordancewiththe"prudentinvestor"guidelinescontainedinERISA.The investmentcommittee,totheextentthatauthorityis delegatedtoitbythefinancecommitteeofAmeren'sboard ofdirectors,implementsinvestmentstrategyandasset allocationguidelinesfortheplanassets.Theinvestment committeeincludesmembersofseniormanagement.The investmentcommittee'sgoalsaretwofold:first,toensure thatsufficientfundsareavailabletoprovidethebenefitsat thetimetheyarepayable;andsecond,tomaximizetotal returnonplanassetsandtominimizeexpensevolatility consistentwithitstoleranceforrisk.Amerendelegatesthe taskofinvestmentmanagementtospecialistsineachasset class.Asappropriate,Amerenprovideseachinvestment managerwithguidelinesthatspecifyallowableand prohibitedinvestmenttypes.Theinvestmentcommittee regularlymonitorsmanagerperformanceandcompliance withinvestmentguidelines.Theexpectedreturnonplanassetsassumptionisbasedonhistoricalandprojectedratesofreturnforcurrent andplannedassetclassesintheinvestmentportfolio.
Projectedratesofreturnforeachassetclasswere estimatedafterananalysisofhistoricalexperience,future expectations,andthevolatilityofthevariousassetclasses.
Afterconsideringthetargetassetallocationforeachasset class,weadjustedtheoverallexpectedrateofreturnforthe portfolioforhistoricalandexpectedexperienceofactive portfoliomanagementresultscomparedwithbenchmark returnsandfortheeffectofexpensespaidfromplanassets.
Amerenwilluseanexpectedreturnonplanassetsforits pensionplanassetsandpostretirementplanassetsof 7.25%and7.00%,respectively,in2015.Noplanassetsare expectedtobereturnedtoAmerenduring2015.
120 Ameren'sinvestmentcommitteestrivestoassembleaportfolioofdiversifiedassetsthatdoesnotcreateasignificantconcentrationofrisks.Theinvestmentcommitteedevelopsassetallocationguidelinesbetweenassetclasses,anditcreatesdiversificationthroughinvestmentsinassetsthatdifferbytype(equity,debt,realestate,privateequity),duration,market capitalization,country,style(growthorvalue)andindustry,amongotherfactors.Thediversificationofassetsisdisplayedin thetargetallocationtablebelow.Theinvestmentcommitteealsoroutinelyrebalancestheplanassetstoadheretothe diversificationgoals.Theinvestmentcommittee'sstrategyreducestheconcentrationofinvestmentrisk;however,Amerenis stillsubjecttooverallmarketrisk.Thefollowingtablepresentsourtargetallocationsfor2015andourpensionand postretirementplans'assetcategoriesasofDecember31,2014and2013:
Asset CategoryTargetAllocation 2015PercentageofPlanAssetsatDecember31, 2014 2013PensionPlan:Cashandcashequivalents........................................0%-5%
2%2%Equitysecurities:U.S.large-capitalization.........................................29%-39%
34%36%U.S.small-andmid-capitalization.................................2%-12%
7%8%Internationalandemergingmarkets...............................9%-19%
12%14%Totalequity....................................................50%-60%
53%58%Debtsecurities..................................................35%-45%
41%36%Realestate.....................................................0%-9%
4%4%Privateequity...................................................0%-4%(a)(a)Total.........................................................
100%100%PostretirementPlans:
Cashandcashequivalents........................................0%-10%
4%4%Equitysecurities:U.S.large-capitalization.........................................33%-43%
40%41%U.S.small-andmid-capitalization.................................3%-13%
7%8%International.................................................10%-20%
13%14%Totalequity....................................................55%-65%
60%63%Debtsecurities..................................................30%-40%
36%33%Total.........................................................
100%100%(a)Lessthan1%ofplanassets.Ingeneral,theUnitedStateslarge-capitalizationequityinvestmentsarepassivelymanagedorindexed,whereastheinternational,emergingmarkets,UnitedStatessmall-capitalization,andUnitedStatesmid-capitalizationequityinvestmentsareactivelymanagedbyinvestmentmanagers.Debtsecuritiesincludeabroadrangeoffixedincomevehicles.Debtsecurityinvestmentsinhigh-yieldsecurities,emergingmarketsecurities,andnon-UnitedStatesdollar-denominatedsecuritiesare ownedbytheplans,butinlimitedquantitiestoreducerisk.Mostofthedebtsecurityinvestmentsareunderactive managementbyinvestmentmanagers.Realestateinvestmentsincludeprivaterealestatevehicles;however,Amerendoesnot,bypolicy,holddirectinvestmentsinrealestateproperty.Ameren'sinvestmentinprivateequityfundsisspreadamongnine differentlimitedpartnerships,withinvestedcapitalrangingfrom$0.1millionto$5millionineach,whichinvestprimarilyina diversifiednumberofsmallUnitedStates-basedcompanies.Nofurthercommitmentsmaybemadetoprivateequity investmentswithoutapprovalbythefinancecommitteeoftheboardofdirectors.Additionally,Ameren'sinvestmentcommitteeallowsinvestmentmanagerstousederivatives,suchasindexfutures,exchangetradedfunds,foreignexchangefutures,and options,incertainsituations,toincreaseortoreducemarketexposureinanefficientandtimelymanner.FairValueMeasurementsofPlanAssetsInvestmentsinthepensionandpostretirementbenefitplanswerestatedatfairvalueasofDecember31,2014.Thefairvalueofanassetistheamountthatwouldbereceiveduponitssaleinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Cashandcashequivalentshaveinitialmaturitiesofthreemonthsorlessandarerecordedatcostplus accruedinterest.Thecarryingamountsofcashandcashequivalentsapproximatefairvaluebecauseoftheshort-termnature oftheseinstruments.Investmentstradedinactivemarketsonnationalorinternationalsecuritiesexchangesarevaluedat closingpricesonthelastbusinessdayonorbeforethemeasurementdate.Securitiestradedinover-the-countermarketsare valuedbasedonquotedmarketprices,brokerordealerquotations,oralternativepricingsourceswithreasonablelevelsof pricetransparency.Derivativecontractsarevaluedatfairvalue,asdeterminedbytheinvestmentmanagers(orindependent thirdpartiesonbehalfoftheinvestmentmanagers),whouseproprietarymodelsandtakeintoconsiderationexchange quotationsonunderlyinginstruments,dealerquotations,andothermarketinformation.Thefairvalueofrealestateisbasedonannualappraisalreportspreparedbyanindependentrealestateappraiser.
121 Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchydiscussedinNote8-FairValueMeasurements,thepensionplanassetsmeasuredatfairvalueasofDecember31,2014:QuotedPricesinActiveMarketsforIdentifiedAssets(Level1)SignificantOtherObservableInputs(Level2)SignificantOther Unobservable Inputs(Level3)TotalCashandcashequivalents..................................$-$38$-$38Equitysecurities:U.S.large-capitalization..................................-1,331-1,331U.S.small-andmid-capitalization..........................270--270Internationalandemergingmarkets.........................134360-494Debtsecurities:Corporatebonds........................................-1,026-1,026Municipalbonds........................................-175-175U.S.treasuryandagencysecurities.........................6366-372 Other.................................................-31-31Realestate..............................................--147147Privateequity............................................--1313Derivativeassets..........................................1--1 Total...................................................$411$3,327$160$3,898Less:MedicalbenefitassetsatDecember31 (a)..................
(125)Plus:NetreceivablesatDecember31 (b)........................21Fairvalueofpensionplansassetsatyearend...................$
3,794(a)Medicalbenefit(healthandwelfare)componentforaccountsmaintainedinaccordancewithSection401(h)oftheInternalRevenueCodetofundaportionofthepostretirementobligation.(b)Receivablesrelatedtopendingsecuritysales,offsetbypayablesrelatedtopendingsecuritypurchases.Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchydiscussedinNote8-FairValueMeasurements,thepensionplanassetsmeasuredatfairvalueasofDecember31,2013:QuotedPricesinActiveMarketsforIdentifiedAssetsorLiabilities(Level1)SignificantOtherObservableInputs(Level2)SignificantOther Unobservable Inputs(Level3)TotalCashandcashequivalents..................................$5$39$-$44Equitysecurities:U.S.large-capitalization..................................1071,162-1,269U.S.small-andmid-capitalization..........................273--273Internationalandemergingmarkets.........................143372-515Debtsecurities:Corporatebonds........................................-860-860Municipalbonds........................................-149-149U.S.treasuryandagencysecurities.........................-256-256 Other.................................................-27-27Realestate..............................................--131131Privateequity............................................--1515Derivativeassets..........................................1--1Derivativeliabilities........................................(1)--(1)
Total...................................................$528$2,865$146$3,539Less:MedicalbenefitassetsatDecember31 (a)..................
(112)Plus:NetreceivablesatDecember31 (b)........................34Fairvalueofpensionplansassetsatyearend...................$
3,461(a)Medicalbenefit(healthandwelfare)componentforaccountsmaintainedinaccordancewithSection401(h)oftheInternalRevenueCodetofundaportionofthepostretirementobligation.(b)Receivablesrelatedtopendingsecuritysales,offsetbypayablesrelatedtopendingsecuritypurchases.
122 ThefollowingtablesummarizesthechangesinthefairvalueofthepensionplanassetsclassifiedasLevel3inthefairvaluehierarchyforeachoftheyearsendedDecember31,2014and2013:
BeginningBalanceatJanuary1,ActualReturnonPlanAssetsRelatedtoAssetsStillHeldattheReportingDateActualReturnonPlanAssetsRelatedtoAssetsSoldDuringthePeriod Purchases,Sales,andSettlements,Net Net Transfersinto(outof)ofLevel3EndingBalanceatDecember31, 2014:Realestate
............$131$11$-$5$-$147Privateequity
..........
15 (9)10 (3)-13 2013:
Realestate............$118$9$-$4$-$131Privateequity..........19(9)11(6)-15Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchydiscussedinNote8-FairValueMeasurements,thepostretirementbenefitplansassetsmeasuredatfairvalueasofDecember31,2014:QuotedPricesinActiveMarketsforIdentifiedAssets(Level1)SignificantOtherObservableInputs(Level2)SignificantOther Unobservable Inputs(Level3)TotalCashandcashequivalents..................................$89$-$-$89Equitysecurities:U.S.large-capitalization..................................291101-392U.S.small-andmid-capitalization..........................70--70 International...........................................3794-131 Other.................................................-77Debtsecurities:Corporatebonds........................................-105-105Municipalbonds........................................-111-111U.S.treasuryandagencysecurities.........................-89-89 Other.................................................-44-44 Total...................................................$487$551$-$
1,038Plus:MedicalbenefitassetsatDecember31 (a)...................125Less:NetpayablesatDecember31 (b)..........................
(54)Fairvalueofpostretirementbenefitplansassetsatyearend........$1,109(a)Medicalbenefit(healthandwelfare)componentfor401(h)accountstofundaportionofthepostretirementobligation.These401(h)assetsareincludedinthepensionplanassetsshownabove.(b)Payablesrelatedtopendingsecuritypurchases,offsetbyinterestreceivablesandreceivablesrelatedtopendingsecuritysales.Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchydiscussedinNote8-FairValueMeasurements,thepostretirementbenefitplansassetsmeasuredatfairvalueasofDecember31,2013:QuotedPricesinActiveMarketsforIdentifiedAssets(Level1)SignificantOtherObservableInputs(Level2)SignificantOther Unobservable Inputs(Level3)TotalCashandcashequivalents..................................$77$-$-$77Equitysecurities:U.S.large-capitalization..................................297101-398U.S.small-andmid-capitalization..........................77--77 International...........................................3996-135 Other.................................................-2-2Debtsecurities:Corporatebonds........................................-97-97Municipalbonds........................................-103-103U.S.treasuryandagencysecurities.........................-72-72 Other.................................................-40-40 Total...................................................$490$511$-$
1,001Plus:MedicalbenefitassetsatDecember31 (a)...................112Less:NetpayablesatDecember31 (b)..........................
(39)Fairvalueofpostretirementbenefitplansassetsatyearend........$1,074(a)Medicalbenefit(healthandwelfare)componentfor401(h)accountstofundaportionofthepostretirementobligation.These401(h)assetsareincludedinthepensionplanassetsshownabove.(b)Payablesrelatedtopendingsecuritypurchases,offsetbyMedicare,interestreceivables,andreceivablesrelatedtopendingsecuritysales.
123 NetPeriodicBenefitCostThefollowingtablepresentsthecomponentsofthenetperiodicbenefitcostofourpensionandpostretirementbenefitplansduring2014,2013,and2012:PensionBenefitsPostretirementBenefits Ameren (a)Ameren (a)2014Servicecost
......................................................................$79$19Interestcost
......................................................................18350Expectedreturnonplanassets
........................................................(229)(65)Amortizationof:Priorservicecredit
...............................................................(1)(5)Actuarial(gain)loss
..............................................................49(7)Netperiodicbenefitcost(benefit)
......................................................$81$(8)2013 Servicecost......................................................................$91$22Interestcost......................................................................16346Expectedreturnonplanassets
........................................................(218)(62)Amortizationof:Priorservicecredit...............................................................(2)(6)Actuarialloss...................................................................878Curtailmentgain
...................................................................(12)(7)Netperiodicbenefitcost (b)...........................................................$109$1 2012 Servicecost......................................................................$81$22Interestcost......................................................................16647Expectedreturnonplanassets
........................................................
(208)(56)Amortizationof:Transitionobligation
..............................................................
-2Priorservicecredit
...............................................................(3)(6)Actuarialloss...................................................................75 5Netperiodicbenefitcost (c)...........................................................$111$14(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.
(b)Thenetperiodicbenefitcostincludesa$6millionanda$7millionnetgainforpensionbenefitsandpostretirementbenefits,respectively,whichwasincludedin"Income(loss)fromdiscontinuedoperations,netoftaxes"onAmeren'sconsolidatedstatementofincome(loss).This netgainincludesthecurtailmentgainrecognizedin2013asaresultofasignificantreductioninemployeesasoftheDecember2,2013closing dateoftheNewAERdivestiture.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsforadditionalinformationonthe
divestiture.(c)Thenetperiodicbenefitcostincludes$9millionand$-millionintotalnetcostsforpensionbenefitsandpostretirementbenefits,respectively,whichwereincludedin"Income(loss)fromdiscontinuedoperations,netoftaxes"onAmeren'sconsolidatedstatementofincome(loss).See Note16-DivestitureTransactionsandDiscontinuedOperationsforadditionalinformationonthedivestiture.Thecurrentyearexpectedreturnonplanassetsisdeterminedprimarilybyadjustingtheprioryearmarket-relatedassetvalueforcurrentyearcontributions,disbursements,andexpectedreturn,plus25%oftheactualreturninexcessof(orlessthan)expectedreturnforthefourprioryears.TheestimatedamountsthatwillbeamortizedfromregulatoryassetsandaccumulatedOCIintonetperiodicbenefitcostin2015areasfollows:PensionBenefitsPostretirementBenefits Ameren (a)Ameren (a)Regulatoryassets:Priorservicecredit...............................................................$(1)$(4)Netactuarialloss.................................................................8615AccumulatedOCI:Netactuarial(gain)loss...........................................................2(2)
Total............................................................................$87$9(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.
124 Priorservicecostisamortizedonastraight-linebasisovertheaveragefutureserviceofactiveparticipantsbenefitingundertheplanamendment.Thenetactuarial(gain)losssubjecttoamortizationisamortizedonastraight-linebasisover10 years.TheAmerenCompaniesareresponsiblefortheirshareofthepensionandpostretirementbenefitcosts.Thefollowingtablepresentsthepensioncostsandthepostretirementbenefitcostsincurredandincludedincontinuingoperationsforthe yearsendedDecember31,2014,2013,and2012:PensionCostsPostretirementCosts201420132012201420132012AmerenMissouri
.....................................$50$69$63$3$8$10AmerenIllinois
......................................
304137 (9)-4 Other..............................................
1 52 (2)--Ameren (a)..........................................
81115102 (8)814(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.Theexpectedpensionandpostretirementbenefitpaymentsfromqualifiedtrustandcompanyfunds,whichreflectexpectedfutureservice,asofDecember31,2014,areasfollows:PensionBenefitsPostretirementBenefitsPaidfrom Qualified TrustPaidfrom Company FundsPaidfrom Qualified TrustPaidfrom Company Funds 2015...................................................$253$3$58$
2 2016...................................................256 361 2 2017...................................................257 464 2 2018...................................................260 368 2 2019...................................................260 370 22020-2024.............................................
1,273 11 388 11ThefollowingtablepresentstheassumptionsusedtodeterminenetperiodicbenefitcostforourpensionandpostretirementbenefitplansfortheyearsendedDecember31,2014,2013,and2012:PensionBenefitsPostretirementBenefits201420132012201420132012Discountrateatmeasurementdate
...........................
4.75%4.00%4.50%
4.75%4.00%4.50%Expectedreturnonplanassets
..............................
7.257.507.75 7.007.257.50Increaseinfuturecompensation
.............................
3.503.503.50 3.503.503.50Medicalcosttrendrate(initial)
..............................(a)(a)(a)5.005.005.50Medicalcosttrendrate(ultimate)
............................(a)(a)(a)5.005.005.00Yearstoultimaterate
.....................................(a)(a)(a)--1year(a)NotapplicableThetablebelowreflectsthesensitivityofAmeren'splanstopotentialchangesinkeyassumptions:PensionBenefitsPostretirementBenefitsServiceCostandInterest Cost Projected Benefit ObligationServiceCostandInterest Cost Postretirement Benefit Obligation0.25%decreaseindiscountrate...............................$(1)$138$1$390.25%increaseinsalaryscale
.................................
213--1.00%increaseinannualmedicaltrend
..........................
--3361.00%decreaseinannualmedicaltrend
.........................
--(2)(33)125 OtherAmerensponsorsa401(k)planforeligibleemployees.TheAmeren401(k)plancoveredalleligibleemployeesatDecember31,2014.Theplanallowedemployeestocontributeaportionoftheircompensationinaccordancewithspecificguidelines.Amerenmatchedapercentageoftheemployeecontributionsuptocertainlimits.Thefollowingtablepresentsthe portionofthematchingcontributiontotheAmeren401(k)planattributabletothecontinuingoperationsforeachofthe AmerenCompaniesfortheyearsendedDecember31,2014,2013,and2012:201420132012AmerenMissouri
.......................................................................$16$16$16AmerenIllinois
........................................................................
11109 Other................................................................................
1 11 Ameren (a)............................................................................
282726(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.NOTE12-STOCK-BASEDCOMPENSATIONAmeren'slong-termincentiveplanavailableforeligibleemployeesanddirectors,the2006IncentivePlan,wasreplacedprospectivelyfornewgrantsbythe2014IncentivePlaneffectiveinApril2014.The2014IncentivePlanprovidesforamaximum of8millioncommonsharestobeavailableforgranttoeligibleemployeesanddirectors.Itretainsmanyofthefeaturesofthe 2006IncentivePlan.Totheextentthattheissuanceofasharethatissubjecttoanoutstandingawardunderthe2006Incentive PlanwouldcauseAmerentoexceedthemaximumauthorizedsharesunderthe2006IncentivePlan,theissuanceofthatshare willtakeplaceunderthe2014IncentivePlan.Thiswillreducethemaximumnumberofsharesthatmaybegrantedunderthe 2014IncentivePlan.The2014IncentivePlanawardsmaybestockoptions,stockappreciationrights,restrictedstock,restrictedstockunits,performanceshares,performanceshareunits,cash-basedawards,andotherstock-basedawards.AsummaryofnonvestedsharesatDecember31,2014,andchangesduringtheyearendedDecember31,2014,underthe2006IncentivePlanandthe2014IncentivePlanarepresentedbelow:PerformanceShareUnits Share Units Weighted-averageFairValueperShareUnitNonvestedatJanuary1,2014
.....................................................1,218,544$33.23 Granted (a).....................................................................688,32338.90AprilGrants (b).................................................................38,55950.34Unearnedorforfeited (c)..........................................................(97,432)34.42Earnedandvested (d)............................................................(685,617)36.12NonvestedatDecember31,2014
..................................................
1,162,377$35.35(a)Includesperformanceshareunits(shareunits)grantedtocertainexecutiveandnonexecutiveofficersandothereligibleemployeesin2014underthe2006IncentivePlanandthe2014IncentivePlan.(b)InApril2014,certainexecutiveofficersweregrantedadditionalshareunitsunderthe2006IncentivePlanandthe2014IncentivePlan.Thesignificantassumptionsusedtocalculatefairvalueincludedaproratedthree-yearrisk-freeraterangingfrom0.76%to0.79%,volatilityof12%to18%forthepeergroup,andAmeren'sattainmentofathree-yearaverageearningspersharethresholdduringtheperformanceperiod.(c)Includesshareunitsgrantedin2012thatwerenotearnedbasedonperformanceprovisionsoftheawardgrants.
(d)Includesshareunitsgrantedin2012thatvestedasofDecember31,2014,thatwereearnedpursuanttotheprovisionsoftheawardgrants.Alsoincludesshareunitsthatvestedduetoattainmentofretirementeligibilitybycertainemployees.Actualsharesissuedforretirement-eligibleemployeeswillvarydependingonactualperformanceoverthethree-yearmeasurementperiod.Amerenrecordedcompensationexpenseof$19million,$20million,and$22millionfortheyearsendedDecember31,2014,2013,and2012,respectively,anda relatedtaxbenefitof$7million,$8million,and$8millionfor theyearsendedDecember31,2014,2013,and2012, respectively.Amerensettledperformanceshareunitsand restrictedsharesof$33million,$11million,and$11million fortheyearsendedDecember31,2014,2013,and2012.
Therewerenosignificantcompensationcostscapitalized relatedtotheperformanceshareunitsduringtheyearsended December31,2014,2013,and2012.AsofDecember31, 2014,totalcompensationcostof$18millionrelatedto nonvestedawardsnotyetrecognizedhasexpectedtobe recognizedoveraweighted-averageperiodof20months.PerformanceShareUnitsPerformanceshareunitshavebeengrantedunderthe2006IncentivePlanandthe2014IncentivePlan.Ashareunit vestsandentitlesanemployeetoreceivesharesofAmeren commonstock(plusaccumulateddividends)if,attheendof thethree-yearperformanceperiod,certainspecified performanceormarketconditionshavebeenmetandifthe individualremainsemployedbyAmeren.Theexactnumber ofsharesissuedpursuanttoashareunitvariesfrom0%to 200%ofthetargetaward,dependingonactualcompany performancerelativetotheperformancegoals.Thefairvalueofeachshareunitawardedin2014,excludingthegrantsissuedinAprilforcertainexecutive 126 officers,underthe2006IncentivePlanandthe2014IncentivePlanwasdeterminedtobe$38.90.Thatamount wasbasedonAmeren'sclosingcommonsharepriceof
$36.16atDecember31,2013,andlatticesimulations.
Latticesimulationsareusedtoestimateexpectedshare payoutbasedonAmeren'stotalshareholderreturnfora three-yearperformanceperiodrelativetothedesignated peergroupbeginningJanuary1,2014.Thesimulationscan produceagreaterfairvaluefortheshareunitthanthe applicableclosingcommonsharepricebecausethey includetheweightedpayoutscenariosinwhichanincrease inthesharepricehasoccurred.Thesignificant assumptionsusedtocalculatefairvaluealsoincludeda three-yearrisk-freerateof0.78%,volatilityof12%to18%
forthepeergroup,andAmeren'sattainmentofathree-year averageearningspersharethresholdduringthe performanceperiod.ThefairvalueofeachshareunitawardedinJanuary2013underthe2006IncentivePlanwasdeterminedtobe
$31.19.ThatamountwasbasedonAmeren'sclosing commonsharepriceof$30.72atDecember31,2012,and latticesimulations.Latticesimulationsareusedtoestimate expectedsharepayoutbasedonAmeren'stotalshareholder returnforathree-yearperformanceperiodrelativetothe designatedpeergroupbeginningJanuary1,2013.The simulationscanproduceagreaterfairvaluefortheshare unitthantheapplicableclosingcommonshareprice becausetheyincludetheweightedpayoutscenariosin whichanincreaseinthesharepricehasoccurred.The significantassumptionsusedtocalculatefairvaluealso includedathree-yearrisk-freerateof0.36%,volatilityof 12%to21%forthepeergroup,andAmeren'sattainment ofathree-yearaverageearningspersharethresholdduring theperformanceperiod.NOTE13-INCOMETAXESThefollowingtablepresentstheprincipalreasonsforthedifferencebetweentheeffectiveincometaxrateandthestatutoryfederalincometaxratefortheyearsendedDecember31,2014,2013,and2012:AmerenMissouriAmerenIllinoisAmeren 2014Statutoryfederalincometaxrate:
.............................................35%35%35%Increases(decreases)from:Amortizationofinvestmenttaxcredit
......................................(1)-(1)Statetax............................................................364Otherpermanentitems
.................................................--1Effectiveincometaxrate
....................................................37%41%39%2013 Statutoryfederalincometaxrate:.............................................35%35%35%Increases(decreases)from:Depreciationdifferences................................................-(1)-Amortizationofinvestmenttaxcredit......................................(1)-(1)Statetax............................................................364Otherpermanentitems.................................................1--Effectiveincometaxrate....................................................38%40%38%
2012 Statutoryfederalincometaxrate:.............................................35%35%35%Increases(decreases)from:Depreciationdifferences................................................(1)-(1)Amortizationofinvestmenttaxcredit......................................(1)(1)(1)Statetax............................................................365Reserveforuncertaintaxpositions........................................1--Otherpermanentitems.................................................--(1)Effectiveincometaxrate....................................................37%40%37%
127 Thefollowingtablepresentsthecomponentsofincometaxexpense(benefit)fortheyearsendedDecember31,2014,2013,and2012:AmerenMissouriAmerenIllinoisOtherAmeren 2014Currenttaxes:
Federal.............................................$(13)$(51)$27$(37)
State...............................................(3)(2)(32)(37)Deferredtaxes:
Federal.............................................222159(12)369 State...............................................28382288Deferredinvestmenttaxcredits,amortization
..................(5)(1)-(6)Totalincometaxexpense
.................................$229$143$5$377 2013 Currenttaxes:
Federal.............................................$136$(15)$(239)(a)$(118)State...............................................4121 (43)(a)19Deferredtaxes:
Federal.............................................6499205 (a)368 State...............................................6636 (a)48Deferredinvestmenttaxcredits,amortization..................(5)(1)-(6)Totalincometaxexpense(benefit)..........................$242$110$(41)$311 2012 Currenttaxes:
Federal.............................................$(25)$(7)$72$40 State...............................................(10)(3)2310Deferredtaxes:
Federal.............................................24876(120)204 State...............................................4430(14)60Deferredinvestmenttaxcredits,amortization..................(5)(2)-(7)Totalincometaxexpense(benefit)..........................$252$94$(39)$307(a)TheseamountsaresubstantiallyrelatedtothereversalofunrecognizedtaxbenefitsasaresultofIRSguidancerelatedtothedeductibilityofexpenditurestomaintain,replaceorimprovesteamorelectricpowergenerationproperty,alongwithcasualtylossdeductionsforstorm damage.Theamountsalsoreflecttheincreaseindeferredtaxexpenseduetoavailablenetoperatinglosses.TheIllinoiscorporateincometaxratewasincreasedto9.5%fromJanuary2011throughDecember2014.Thetaxratedecreasedto7.75%onJanuary1,2015andisscheduledtodecreaseto7.3%onJanuary1,2025.ThefollowingtablepresentsthedeferredtaxassetsanddeferredtaxliabilitiesrecordedasaresultoftemporarydifferencesatDecember31,2014and2013:AmerenMissouriAmerenIllinoisOtherAmeren 2014Accumulateddeferredincometaxes,netliability(asset):Plantrelated
.........................................$2,776$1,393$16$4,185Regulatoryassets,net
..................................82(5)178Deferredemployeebenefitcosts
..........................(80)(45)(95)(220)Revenuerequirementreconciliationadjustments
.............-66369Taxcarryforwards
.....................................(107)(139)(429)(675)
Other...............................................86(22)70134Totalnetaccumulateddeferredincometaxliabilities(assets)(a)....$2,757$1,248$(434)$3,571 2013 Accumulateddeferredincometaxes,netliability(asset):Plantrelated.........................................$2,513$1,243$13$3,769Regulatoryassets,net..................................742-76Deferredemployeebenefitcosts
..........................(74)(85)(114)(273)Revenuerequirementreconciliationadjustments.............-(4)2(2)Taxcarryforwards
.....................................(76)(95)(370)(541)
Other...............................................671038115Totalnetaccumulateddeferredincometaxliabilities(assets)(b)....$2,504$1,071$(431)$3,144(a)Includes$49millionrecordedin"Othercurrentassets"onAmerenMissouri'sbalancesheetasofDecember31,2014.(b)Includes$20millionrecordedin"Othercurrentassets"onAmerenMissouri'sbalancesheetasofDecember31,2013.
128 Thefollowingtablepresentsthecomponentsofdeferredtaxassetsrelatingtonetoperatinglosscarryforwards,taxcreditcarryforwards,andcharitablecontributioncarryforwardsatDecember31,2014:
Ameren Missouri AmerenIllinoisOtherAmerenNetoperatinglosscarryforwards:
Federal (a)..............................................$75$127$255$457 State (b)...............................................11105374Totalnetoperatinglosscarryforwards.........................$86$137$308$531Taxcreditcarryforwards:
Federal (c)..............................................$21$1$77$99 State (d)...............................................
1 23336Statevaluationallowance (e)................................(1)(1)(2)(4)Totaltaxcreditcarryforwards................................$21$2$108$131Charitablecontributioncarryforwards (f)........................$-$-$19$19Valuationallowance (g)....................................
--(6)(6)Totalcharitablecontributioncarryforwards.....................$-$-$13$13(a)Willbegintoexpirein2028.(b)Willbegintoexpirein2020.
(c)Willbegintoexpirein2029.
(d)Begantoexpirein2013.
(e)Thisbalanceincreasedbylessthan$1million,$-million,and$-millionforAmeren,AmerenMissouri,andAmerenIllinois,respectively,during2014.(f)Thesebegantoexpirein2013.
(g)Thisbalanceincreasedby$3million,$-millionand$-millionforAmeren,AmerenMissouriandAmerenIllinois,respectively,during2014.Thefollowingtablepresentsthecomponentsofdeferredtaxassetsrelatingtonetoperatinglosscarryforwards,taxcreditcarryforwards,andcharitablecontributioncarryforwardsatDecember31,2013:
Ameren Missouri AmerenIllinoisOtherAmerenNetoperatinglosscarryforwards:
Federal (a)..............................................$61$84$215$360 State (b)...............................................
3113448Totalnetoperatinglosscarryforwards.........................$64$95$249$408Taxcreditcarryforwards:
Federal (c)..............................................$12$-$76$88 State (d)...............................................
1 13234Statevaluationallowance (e)................................(1)(1)(2)(4)Totaltaxcreditcarryforwards................................$12$-$106$118Charitablecontributioncarryforwards (f)........................$-$-$18$18Valuationallowance (g)....................................
--(3)(3)Totalcharitablecontributioncarryforwards.....................$-$-$15$15(a)Willbegintoexpirein2028 (b)Willbegintoexpirein2019.
(c)Willbegintoexpirein2029.
(d)Begantoexpirein2013.
(e)Balanceincreasedby$2million,$-million,and$-millionforAmeren,AmerenMissouri,andAmerenIllinois,respectively,during2013.
(f)Thesebegantoexpirein2013.
(g)Thisbalanceincreasedby$3million,$-million,and$-millionforAmeren,AmerenMissouri,andAmerenIllinois,respectively,during2013.
129 UncertainTaxPositionsAreconciliationofthechangeintheunrecognizedtaxbenefitbalanceduringtheyearsendedDecember31,2012,2013,and2014,isasfollows:
Ameren Missouri AmerenIllinoisOtherAmerenUnrecognizedtaxbenefits-January1,2012....................$124$11$13$148Increasesbasedontaxpositionspriorto2012................4-15Decreasesbasedontaxpositionspriorto2012................(7)(1)(5)
(13)Increasesbasedontaxpositionsrelatedto2012...............153(1)17Changesrelatedtosettlementswithtaxingauthorities...........----Decreasesrelatedtothelapseofstatuteoflimitations...........--(1)(1)Unrecognizedtaxbenefits-December31,2012.................$136$13$7$156Increasesbasedontaxpositionspriorto2013................-257Decreasesbasedontaxpositionspriorto2013
................(122)(16)(5)(143)Increases(decreases)basedontaxpositionsrelatedto2013.....16-53 (a)69Changesrelatedtosettlementswithtaxingauthorities...........----Decreasesrelatedtothelapseofstatuteoflimitations...........1--1Unrecognizedtaxbenefits-December31,2013.................$31$(1)$60$90Increasesbasedontaxpositionspriorto2014
................1146Decreasesbasedontaxpositionspriorto2014
................(32)(1)(9)(42)Increasesbasedontaxpositionsrelatedto2014
...............----Changesrelatedtosettlementswithtaxingauthorities
...........----Increasesrelatedtothelapseofstatuteoflimitations
...........----Unrecognizedtaxbenefits(detriments)-December31,2014
.......$-$(1)$55$54Totalunrecognizedtaxbenefitsthat,ifrecognized,wouldaffecttheeffectivetaxratesasofDecember31,2012...................$3$(1)$(1)$1Totalunrecognizedtaxbenefits(detriments)that,ifrecognized,wouldaffecttheeffectivetaxratesasofDecember31,2013...........$3$-$51 (a)$54Totalunrecognizedtaxbenefitsthat,ifrecognized,wouldaffecttheeffectivetaxratesasofDecember31,2014
...................$-$(1)$53 (a)$52(a)PrimarilyduetotaxpositionsrelatingtotheNewAERdivestiture.Theincomestatementimpactofthisunrecognizedtaxbenefitwasincludedin"Income(loss)fromdiscontinuedoperations,netoftaxes"onAmeren'sconsolidatedstatementofincome(loss).SeeNote16-DivestitureTransactionsandDiscontinuedOperationsforadditionalinformation.TheAmerenCompaniesrecognizeinterestcharges(income)andpenaltiesaccruedontaxliabilitiesonapretaxbasisasinterestcharges(income)ormiscellaneousexpense,respectively,inthestatementsofincome.AreconciliationofthechangeintheliabilityforinterestonunrecognizedtaxbenefitsduringtheyearsendedDecember31,2012,2013,and2014,isasfollows:
Ameren Missouri AmerenIllinoisOtherAmerenLiabilityforinterest-January1,2012.........................$6$1$(2)$5Interestcharges(income)for201 2..........................
2-(1)1Liabilityforinterest-December31,2012......................$8$1$(3)$6Interestcharges(income)for201 3..........................(8)(1)4(5)Liabilityforinterest-December31,2013......................$-$-$1$1Interestcharges(income)for201 4..........................
--(1)(1)Liabilityforinterest-December31,2014
......................$-$-$-$-AsofDecember31,2012,2013,and2014,theAmerenCompanieshaveaccruednoamountforpenaltieswithrespecttounrecognizedtaxbenefits.In2014,finalsettlementsfortaxyears2007through2011werereachedwiththeIRS.Thesesettlements,whichresolvedtheuncertaintaxpositionsassociatedwiththetimingofresearchtaxdeductionsfortheseyears,resultedinadecreaseinAmeren'sandAmerenMissouri'sunrecognizedtaxbenefitsof$20million,and$13million,respectively.Inaddition,the settlementfortaxyears2007through2011providedcertaintyforthepreviouslyuncertaintaxpositionsassociatedwiththe timingofresearchtaxdeductionsfortheremainingopentaxyearsof2012,2013,and2014.Asaresult,thecertaintyprovided fromthesettlementresultedinan$18milliondecreaseinbothAmeren'sandAmerenMissouri'sunrecognizedtaxbenefits.
130 Thesettlementalsoresultedina$2millionincreasetoAmeren'sstateunrecognizedtaxbenefits.Thenetreductioninunrecognizedtaxbenefitsin2014didnotmateriallyaffectincometaxexpensefortheAmerenCompanies.In2013,unrecognizedtaxbenefitsrelatedtothedeductibilityofexpenditurestomaintain,replace,orimprovesteamorelectricpowergenerationproperty,alongwithcasualtylossdeductionsforstormdamage,werereducedby$103million,
$95million,and$5millionforAmeren,AmerenMissouri,andAmerenIllinois,respectively.Thisreductioninunrecognizedtax benefitsdidnotaffectincometaxexpensefortheAmerenCompanies.However,theliabilityforinterestrelatedtothese unrecognizedtaxbenefitswasreleasedin2013.In2013,Amerenadoptedanaccountingmethodchangeasaresultof guidanceissuedbytheIRS,withrespecttotheamountandtimingofthedeductionstomaintain,replace,orimprove generationproperty.ItisreasonablypossiblethatasettlementwillbereachedwiththeIRSinthenext12monthsfortheyears2012and2013.However,theAmerenCompaniesdonotbelieveanysettlementswouldhaveamaterialeffectonitsnetincomefrom continuingoperations.Stateincometaxreturnsaregenerallysubjecttoexaminationforaperiodofthreeyearsafterfiling.Thestateimpactofanyfederalchangesremainssubjecttoexaminationbyvariousstatesforaperiodofuptooneyearafterformalnotificationto thestates.TheAmerenCompaniescurrentlydonothavematerialstateincometaxissuesunderexamination,administrative appeals,orlitigation.AmerenMissourihasanuncertaintaxpositiontracker.UnderMissouri'sregulatoryframework,uncertaintaxpositionsdonotreduceAmerenMissouri'selectricratebase.Whenanuncertainincometaxpositionliabilityisresolved,theMoPSC requires,throughtheuncertaintaxpositiontracker,thecreationofaregulatoryassetorregulatoryliabilitytoreflectthetime value,usingtheweighted-averagecostofcapitalincludedineachoftheelectricrateordersineffectbeforethetaxposition wasresolved,ofthedifferencebetweentheuncertaintaxpositionliabilitythatwasexcludedfromratebaseandthefinaltax liability.Theresultingregulatoryassetorliabilitywillaffectearningsintheyearitiscreatedandthenwillbeamortizedover threeyearsbeginningontheeffectivedateofnewratesestablishedinthenextelectricratecase.NOTE14-RELATEDPARTYTRANSACTIONSTheAmerenCompanieshaveengagedin,andmayinthefutureengagein,affiliatetransactionsinthenormalcourseofbusiness.Thesetransactionsprimarilyconsistof naturalgasandpowerpurchasesandsales,services receivedorrendered,andborrowingsandlendings.
Transactionsbetweenaffiliatesarereportedas intercompanytransactionsontheirfinancialstatements,but areeliminatedinconsolidationforAmeren'sfinancial statements.Belowarethematerialrelatedparty
agreements.ElectricPowerSupplyAgreementsCapacitySupplyAgreementsAmerenIllinoismustacquirecapacitysufficienttomeetitsobligationstocustomers.AmerenIllinoisusesperiodicRFPprocessesthatareadministeredbytheIPAto contractcapacityonbehalfofitscustomers.Ameren MissouriparticipatesintheRFPprocessandhasbeena winningsupplierforcertainperiods.In2010,Ameren MissouricontractedtosupplyaportionofAmerenIllinois' capacityrequirementsforlessthan$1millionfortheperiod fromJune1,2010,throughMay31,2013.In2012, AmerenMissouricontractedtosupplyaportionofAmeren Illinois'capacityrequirementsfor$1millionand$3million forthe12monthsendingMay31,2014,and2015, respectively.EnergySwapsandEnergyProductsAmerenIllinoismustacquireenergysufficienttomeetitsobligationstocustomers.In2011,AmerenIllinoisusedanRFPprocess,administeredbytheIPA,toprocureenergyproductsthatsettledphysicallyfromJune1,2011,throughMay31,2014.
AmerenMissouriwasamongthewinningsuppliersinthe energyproductRFPprocess.In2011,AmerenMissouriand AmerenIllinoisenteredintoenergyproductagreementsby whichAmerenMissouriagreedtosellandAmerenIllinois agreedtopurchaseapproximately16,800megawatthoursat approximately$37permegawatthourduringthe12months endedMay31,2012,approximately40,800megawatthours atapproximately$29permegawatthourduringthe 12monthsendedMay31,2013,andapproximately 40,800megawatthoursatapproximately$28per megawatthourduringthe12monthsendedMay31,2014.
TheenergyproductagreementsbetweenAmerenMissouri andAmerenIllinoisfortheperiodsendedMay31,2012,and May31,2013,wereforoff-peakhoursonly.In2014,AmerenIllinoisusedanRFPprocess,administeredbytheIPA,toprocureenergyproductsthat willsettlephysicallyfromDecember1,2014,through May31,2017.AmerenMissouriwasamongthewinning suppliersintheenergyproductRFPprocess.Asaresult,AmerenMissouriandAmerenIllinoisenteredintoenergyproductagreementsbywhichAmerenMissouriagreedto sellandAmerenIllinoisagreedtopurchaseapproximately 168,400megawatthoursatapproximately$51per megawatthourduringtheperiodofJanuary1,2015, throughFebruary28,2017.InterconnectionandTransmissionAgreementsAmerenMissouriandAmerenIllinoisarepartiestoaninterconnectionagreementfortheuseoftheirrespective 131 transmissionlinesandotherfacilitiesforthedistributionofpower.Theseagreementshavenocontractualexpiration date,butmaybeterminatedbyeitherpartywiththreeyears'
notice.JointOwnershipAgreementATXIandAmerenIllinoishaveajointownershipagreementtoconstruct,own,operate,andmaintaincertainelectrictransmissionassetsinIllinois.Underthetermsof thisagreement,AmerenIllinoisandATXIareresponsible fortheirapplicableshareofallcostsrelatedtothe construction,operation,andmaintenanceofelectric transmissionsystems.Currently,therearenoconstruction projectsorjointownershipofexistingassetsunderthis
agreement.SupportServicesAgreementsAmerenServicesprovidessupportservicestoitsaffiliates.Thecostsofsupportservices,includingwages,employeebenefits,professionalservices,andother expenses,arebasedon,orareanallocationof,actualcosts incurred.Asharedservicessupportagreementcanbe terminatedatanytimebythemutualagreementofAmeren Servicesandthataffiliateorbyeitherpartywith60days' noticebeforetheendofacalendaryear.Inaddition,AmerenMissouriandAmerenIllinoisprovideaffiliates,primarilyAmerenServices,withaccessto theirfacilitiesforadministrativepurposes.Thecostofthe rentandfacilityservicesarebasedon,orareanallocation of,actualcostsincurred.Separately,AmerenMissouriandAmerenIllinoisprovidestorm-relatedandmiscellaneoussupportservices toeachotheronanas-neededbasis.TransmissionServicesAmerenIllinoistakestransmissionservicefromMISOfortheretailloaditservesintheAMILpricingzone.ATXIis oneofthetransmissionownersintheAMILpricingzone.
AccordinglyATXIreceivestransmissionpaymentsfrom AmerenIllinoisthroughtheMISObillingprocess.MoneyPoolSeeNote4-Short-termDebtandLiquidityandNote5-Long-termDebtandEquityFinancingsforadiscussionofaffiliateborrowingarrangements.CollateralPostingsUnderthetermsoftheIllinoispowerprocurementagreementsenteredintothroughRFPprocessesadministeredbytheIPA,suppliersmustpostcollateral undercertainmarketconditionstoprotectAmerenIllinois intheeventofnonperformance.Thecollateralpostingsare unilateral,meaningthatonlythesupplierscanberequired topostcollateral.Therefore,AmerenMissouri,asawinning supplierintheRFPprocess,mayberequiredtopost collateral.AsofDecember31,2014and2013,therewere nocollateralpostingsrequiredofAmerenMissourirelated totheIllinoispowerprocurementagreements.TaxAllocationAgreementSeeNote1-SummaryofSignificantAccountingPoliciesforadiscussionofthetaxallocationagreement.AtDecember31,2014,AmerenMissouriandAmerenIllinois hadanintercompanyreceivablebalancewithAmeren (parent)of$58millionand$15million,respectively,related tothetaxallocationagreement.ThefollowingtablepresentstheimpactonAmerenMissouriandAmerenIllinoisofrelatedpartytransactionsfortheyearsendedDecember31,2014,2013,and2012.Itisbasedprimarilyontheagreementsdiscussedaboveandthemoney poolarrangementsdiscussedinNote4-Short-termDebtandLiquidity.
AgreementIncomeStatementLineItem Ameren Missouri Ameren IllinoisAmerenMissouripowersupplyagreementsOperatingRevenues2014$5$(a)withAmerenIllinois20133(a)2012(b)(a)AmerenMissouriandAmerenIllinoisOperatingRevenues2014212rentandfacilityservices2013211 2012191AmerenMissouriandAmerenIllinoisOperatingRevenues20141(b)miscellaneoussupportservices201313 20121(b)TotalOperatingRevenues2014$27$2 2013254 2012201 132 AgreementIncomeStatementLineItem Ameren Missouri Ameren IllinoisAmerenIllinoispowersupplyPurchasedPower2014$(a)$5agreementswithAmerenMissouri2013(a)32012(a)(b)AmerenIllinoistransmissionPurchasedPower2014(a)2serviceswithATXI2013(a)2 2012(a)3TotalPurchasedPower2014$(a)$7 2013(a)5 2012(a)3AmerenServicessupportservicesOtherOperationsand2014$124$109 agreement Maintenance201311693 201210688Insurancepremiums (c)OtherOperationsand2014(b)(a)Maintenance2013(b)(a)2012(b)(a)TotalOtherOperationsand2014$124$109MaintenanceExpenses201311693 201210688Moneypoolborrowings(advances)Interest(Charges)2014$(b)$(b)Income2013(b)(b)2012(b)(b)(a)Notapplicable.
(b)Amountlessthan$1million.
(c)RepresentsinsurancepremiumspaidtoMissouriEnergyRiskAssuranceCompanyLLC,anaffiliate,forreplacementpower.NOTE15-COMMITMENTSANDCONTINGENCIESWeareinvolvedinlegal,tax,andregulatoryproceedingsbeforevariouscourts,regulatorycommissions,authorities,andgovernmentalagencieswithrespecttomattersthatariseintheordinarycourseofbusiness,someofwhichinvolvesubstantialamountsofmoney.Webelievethatthefinaldispositionoftheseproceedings,exceptasotherwisedisclosedinthesenotesto ourfinancialstatements,willnothaveamaterialadverseeffectonourresultsofoperations,financialposition,orliquidity.SeealsoNote1-SummaryofSignificantAccountingPolicies,Note2-RateandRegulatoryMatters,Note10-CallawayEnergyCenter,Note14-RelatedPartyTransactions,andNote16-DivestitureTransactionsandDiscontinuedOperationsin thisreport.CallawayEnergyCenterThefollowingtablepresentsinsurancecoverageatAmerenMissouri'sCallawayenergycenteratDecember31,2014.ThepropertycoverageandthenuclearliabilitycoveragemustberenewedonApril1andJanuary1,respectively,ofeachyear.TypeandSourceofCoverageMaximumCoveragesMaximumAssessmentsPublicliabilityandnuclearworkerliability:AmericanNuclearInsurers
..............................$375$-Poolparticipation
.....................................
13,241 (a)128 (b)$13,616 (c)$128Propertydamage:NuclearElectricInsuranceLimited........................$
2,250 (d)$23 (e)EuropeanMutualAssociationforNuclearInsurance...........500 (f)-$2,750$23Replacementpower:NuclearElectricInsuranceLimited........................$490 (g)$9 (e)MissouriEnergyRiskAssuranceCompanyLLC..............$64 (h)$-(a)Providedthroughmandatoryparticipationinanindustrywideretrospectivepremiumassessmentprogram.(b)RetrospectivepremiumunderthePrice-AndersonAct.Thisissubjecttoretrospectiveassessmentwithrespecttoacoveredlossinexcessof$375millionintheeventofanincidentatanylicensedUnitedStatescommercialreactor,payableat$19millionperyear.
133 (c)LimitofliabilityforeachincidentunderthePrice-AndersonActliabilityprovisionsoftheAtomicEnergyActof1954,asamended.Acompanycouldbeassessedupto$128millionperincidentforeachlicensedreactoritoperates,withamaximumof$19millionperincidenttobepaidinacalendaryearforeachreactor.Thislimitissubjecttochangetoaccountfortheeffectsofinflationandchangesinthenumberoflicensed
reactors.(d)NEILprovides$2.25billioninpropertydamage,decontamination,andprematuredecommissioninginsurance.
(e)AllNEIL-insuredplantscouldbesubjecttoassessmentsshouldlossesexceedtheaccumulatedfundsfromNEIL.
(f)EuropeanMutualAssociationforNuclearInsuranceprovides$500millioninexcessofthe$2.25billionpropertycoverageprovidedbyNEIL.
(g)Providesreplacementpowercostinsuranceintheeventofaprolongedaccidentaloutage.Weeklyindemnityisupto$4.5millionfor52weeks,whichcommencesafterthefirsteightweeksofanoutage,plusupto$3.6millionperweekforaminimumof71weeksthereafter,foratotal notexceedingthepolicylimitof$490million.Nonradiationeventsaresub-limitedto$328million.(h)Providesreplacementpowercostinsuranceintheeventofaprolongedaccidentaloutage.Thecoveragecommencesafterthefirst52weeksofinsurancecoveragefromNEILconcludes;itisaweeklyindemnityofupto$0.9millionfor71weeksinexcessofthe$3.6millionperweekset forthabove.MissouriEnergyRiskAssuranceCompanyLLCisanaffiliate;ithasreinsuredthiscoveragewiththird-partyinsurancecompanies.
SeeNote14-RelatedPartyTransactionsformoreinformationonthisaffiliatetransaction.ThePrice-AndersonActisafederallawthatlimitstheliabilityforclaimsfromanincidentinvolvinganylicensedUnitedStatescommercialnuclearenergycenter.Thelimitisbasedonthenumberoflicensedreactors.ThelimitofliabilityandthemaximumpotentialannualpaymentsareadjustedatleasteveryfiveyearsforinflationtoreflectchangesintheConsumer PriceIndex.Themostrecentfive-yearinflationaryadjustmentbecameeffectiveinSeptember2013.Ownersofanuclear reactorcoverthisexposurethroughacombinationofprivateinsuranceandmandatoryparticipationinafinancialprotection pool,asestablishedbythePrice-AndersonAct.LossesresultingfromterroristattacksonnuclearfacilitiesarecoveredunderNEIL'spolicies,subjecttoanindustrywideaggregatepolicycoveragelimitof$3.24billionwithina12-monthperiod,or$1.83billionforeventsnotinvolvingradiation
contamination.IflossesfromanuclearincidentattheCallawayenergycenterexceedthelimitsof,orarenotcoveredby,insuranceorifcoverageisunavailable,AmerenMissouriisatriskforanyuninsuredlosses.Ifaseriousnuclearincidentweretooccur,it couldhaveamaterialadverseeffectonAmeren'sandAmerenMissouri'sresultsofoperations,financialposition,orliquidity.
LeasesWeleasevariousfacilities,officeequipment,plantequipment,andrailcarsundercapitalandoperatingleases.ThefollowingtablepresentsourleaseobligationsatDecember31,2014:20152016201720182019After5YearsTotal Ameren: (a)Minimumcapitalleasepayments (b)..........................$33$33$33$32$32$360$523Lessamountrepresentinginterest..........................272727262597229Presentvalueofminimumcapitalleasepayments..............$6$6$6$6$7$263$294Operatingleases (c).......................................13121212113898Totalleaseobligations...................................$19$18$18$18$18$301$392AmerenMissouri:Minimumcapitalleasepayments (b)..........................$33$33$33$32$32$360$523Lessamountrepresentinginterest..........................272727262597229Presentvalueofminimumcapitalleasepayments..............$6$6$6$6$7$263$294Operatingleases (c).......................................11111110103790Totalleaseobligations...................................$17$17$17$16$17$300$384AmerenIllinois:
Operatingleases (c).......................................$1$1$1$1$1$1$6(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.
(b)SeePropertiesunderPartI,Item2,andNote3-PropertyandPlant,Net,ofthisreportforadditionalinformation.
(c)Amountsrelatedtocertainland-relatedleaseshaveindefinitepaymentperiods.Theannualobligationsof$2million,$1million,and$1millionforAmeren,AmerenMissouri,andAmerenIllinoisfortheseitemsareincludedinthe2015through2019columns,respectively.
134 Thefollowingtablepresentstotalrentalexpense,includedinoperatingexpenses,fortheyearsendedDecember31,2014,2013,and2012:201420132012 Ameren (a).........................................................................$37$32$33AmerenMissouri
...................................................................
322929AmerenIllinois
.....................................................................
252119(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.OtherObligationsTosupplyaportionofthefuelrequirementsofourenergycenters,wehaveenteredintovariouslong-termcommitmentsfortheprocurementofcoal,naturalgas,nuclearfuel,andmethanegas.Wealsohaveenteredintovariouslong-termcommitmentsforpurchasedpowerandnaturalgasfordistribution.Thetablebelowpresentsourestimatedfuel,purchased power,andothercommitmentsforfuelatDecember31,2014.Ameren'sandAmerenMissouri'spurchasedpower commitmentsincludea102-megawattpowerpurchaseagreementwithawindfarmoperator,whichexpiresin2024.Ameren's andAmerenIllinois'purchasedpowercommitmentsincludetheAmerenIllinoispowerpurchaseagreementsenteredintoas partoftheIPA-administeredpowerprocurementprocess.IncludedintheOthercolumnareminimumpurchasecommitments undercontractsforequipment,designandconstruction,andmeterreadingservicesatDecember31,2014.Inaddition,the OthercolumnincludesAmeren'sandAmerenMissouri'sobligationsrelatedtocustomerenergyefficiencyprogramsunderthe MEEIAasapprovedbytheMoPSC'sDecember2012electricrateorder.AmerenMissouriexpectstoincurcostsof$71million in2015forthesecustomerenergyefficiencyprograms.SeeNote2-RateandRegulatoryMattersforadditionalinformation abouttheMEEIA.
Coal Natural Gas (a)Nuclear Fuel Purchased Power (b)MethaneGasOtherTotal Ameren: (c)2015.....................$654$222$53$190$3$195$
1,317 2016.....................65912560104378 1,029 2017.....................682855966453949 2018.....................111538255551357 2019.....................114324256554303 Thereafter.................-7113859676350 1,231 Total.....................$2,220$588$434$1,067$96$781$5,186AmerenMissouri:
2015.....................$654$39$53$21$3$128$898 2016.....................659226021339804 2017.....................682175921426809 2018.....................111118221527257 2019.....................114104221527219 Thereafter.................-2213810676183525 Total.....................$2,220$121$434$211$96$430$3,512AmerenIllinois:
2015.....................$-$183$-$169$-$29$381 2016.....................-103-83-24210 2017.....................-68-45-24137 2018.....................-42-34-24100 2019.....................-22-35-2784 Thereafter.................-49-490-167706 Total.....................$-$467$-$856$-$295$
1,618(a)Includesamountsforgenerationandfordistribution.
(b)ThepurchasedpoweramountsforAmerenandAmerenIllinoisincludeagreementsthrough2032forrenewableenergycreditswithvariousrenewableenergysuppliers.TheagreementscontainaprovisionthatallowsAmerenIllinoistoreducethequantitypurchasedintheeventthat AmerenIllinoiswouldnotbeabletorecoverthecostsassociatedwiththerenewableenergycredits.(c)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.
135 EnvironmentalMattersWearesubjecttovariousenvironmentallawsandregulationsenforcedbyfederal,state,andlocalauthorities.Fromthebeginningphasesofsitinganddevelopmenttothe operationofexistingornewelectricgeneration, transmissionanddistributionfacilitiesandnaturalgas storage,transmissionanddistributionfacilities,our activitiesinvolvecompliancewithdiverseenvironmental lawsandregulations.Theselawsandregulationsaddress emissions,dischargestowater,waterusage,impactstoair, land,andwater,andchemicalandwastehandling.Complex andlengthyprocessesarerequiredtoobtainandrenew approvals,permits,orlicensesfornew,existingormodified facilities.Additionally,theuseandhandlingofvarious chemicalsorhazardousmaterialsrequirereleaseprevention plansandemergencyresponseprocedures.TheEPAisdevelopingandimplementingenvironmentalregulationsthatwillhaveasignificantimpact ontheelectricutilityindustry.Overtime,compliancewith theseregulationscouldbecostlyforcertaincompanies, includingAmerenMissouri,thatoperatecoal-firedpower plants.Significantnewrulesproposedorpromulgated includetheregulationofCO 2emissionsfromexistingpowerplantsthroughtheproposedCleanPowerPlanandfrom newpowerplantsthroughtherevisedNSPS;revised nationalambientairqualitystandardsforozone,fine particulates,SO 2,andNO xemissions;theCSAPR,whichrequiresfurtherreductionsofSO 2emissionsandNO xemissionsfrompowerplants;aregulationgoverning managementofCCRandCCRimpoundments;theMATS, whichrequirereductionofemissionsofmercury,toxic metals,andacidgasesfrompowerplants;revisedNSPSfor particulatematter,SO 2,andNO xemissionsfromnewsources;neweffluentstandardsapplicabletowastewater dischargesfrompowerplantsandnewregulationsunder theCleanWaterActthatcouldrequiresignificantcapital expenditures,suchasmodificationstowaterintake structuresornewcoolingtowersatAmerenMissouri's energycenters.Certainofthesenewandproposed regulations,ifadopted,arelikelytobechallengedthrough litigation,sotheirultimateimplementation,aswellasthe timingofanysuchimplementation,isuncertain.Although manydetailsofthefutureregulationsareunknown,the combinedeffectsofthenewandproposedenvironmental regulationscouldresultinsignificantcapitalexpenditures andincreasedoperatingcostsforAmerenandAmeren Missouri.Compliancewiththeseenvironmentallawsand regulationscouldbeprohibitivelyexpensive,resultinthe closureoralterationoftheoperationofsomeofAmeren Missouri'senergycenters,orrequirecapitalinvestment.
AmerenandAmerenMissouriexpectthesecostswouldbe recoverablethroughrates,subjecttoMoPSCprudence review,butthenatureandtimingofcosts,aswellasthe applicableregulatoryframework,couldresultinregulatory
lag.AsofDecember31,2014,AmerenandAmerenMissouriestimatecapitalexpenditureinvestmentsof$350millionto$400millionthrough2019tocomplywith existingenvironmentalregulations.Considerable uncertaintyremainsinthisestimate.Theactualamountof capitalinvestmentsrequiredtocomplywithexisting environmentalregulationsmayvarysubstantiallyfromthe aboveestimateduetouncertaintyastotheprecise compliancestrategiesthatwillbeusedandtheirultimate cost,amongotherthings.Thisestimatedoesnotinclude theimpactsoftheproposedCleanPowerPlan'sreduction inemissionsofCO 2,whichisdiscussedbelow.AmerenMissouri'scurrentplanforcompliancewithexistingenvironmentalregulationsforairemissions includesburningultra-low-sulfurcoalandinstallingnewor optimizingexistingpollutioncontrolequipment.Ameren MissourihastwoscrubbersatitsSiouxenergycenter, whichareusedtoreduceSO 2emissionsandotherpollutants.AmerenMissouri'scomplianceplanassumes theinstallationofadditionalcontrolsincludingmercury controltechnologyatmultipleenergycenterswithinits coal-firedfleetthrough2019.However,AmerenMissouri continuestoevaluateitsoperationsandoptionsto determinehowtocomplywiththeCSAPR,theMATS,and otherrecentlyfinalizedorproposedEPAregulations.
AmerenMissourimayberequiredtoinstalladditional pollutioncontrolswithinthenextsixto10years.Asthe CleanPowerPlanisstillsubjecttorevisionbytheEPAand implementationbythestates,AmerenMissourihasnot finalizedacomplianceplanfortheproposedrule.Thefollowingsectionsdescribethemoresignificantneworproposedenvironmentallawsandrulesand environmentalenforcementandremediationmattersthat affectorcouldaffectouroperations.CleanAirActBothfederalandstatelawsrequiresignificantreductionsinSO 2andNO xthrougheitheremissionsourcereductionsortheuseandretirementofemissionallowances.In2005,theEPAissuedregulationswith respecttoSO 2andNO xemissions(theCAIR).TheCSAPRreplacedtheCAIRandbecameeffectiveonJanuary1,2015 forSO 2andannualNO xreductions,andonMay1,2015,willbecomeeffectiveforozoneseasonNO x reductions.Therewillbefurtherreductionsin2017andinsubsequent years.AmerenMissouriexpectstohavesufficientlyreduced emissionsandhavesufficientallowancesfor2015toavoid makingexternalpurchasestocomplywithCSAPR.Ameren Missourihasalreadytakenactionstoprepareforthe implementationoftheCSAPR,includingtheinstallationof twoscrubbersatitsSiouxenergycenterandburningultra-lowsulfurcoal.AmerenMissouridoesnotexpecttomake additionalcapitalinvestmentstocomplywiththeCSAPR.
However,AmerenMissouriwillincuradditionaloperations andmaintenancecoststoloweritsemissionsatoneor moreofitsenergycentersincompliancewiththeCSAPR.
Thesehigheroperationsandmaintenancecostsare expectedtobecollectedfromcustomersthroughtheFAC orhigherbaserates.
136 InDecember2011,theEPAissuedtheMATSundertheCleanAirAct,whichrequiresemissionreductionsformercuryandotherhazardousairpollutants,suchasacid gases,tracemetals,andhydrogenchlorideemissions.The MATSdonotrequireaspecificcontroltechnologyto achievetheemissionreductions.TheMATSwillapplyto eachunitatacoal-firedpowerplant.However,incertain cases,compliancecanbeachievedbyaveragingemissions fromsimilarunitsatthesamepowerplant.Complianceis requiredbyApril2015or,withacase-by-caseextension,by April2016.AmerenMissouri'sLabadieandMeramec energycentersweregrantedextensionsandexpectto complywiththeMATSbyApril2016.AmerenMissouri expectstomakeadditionalcapitalinvestmentstocomply withtheMATS.Thesecapitalexpenditureinvestmentsare includedinAmeren'sandAmerenMissouri'sestimate above.Inaddition,AmerenMissouriwillincuradditional operationsandmaintenancecoststoloweritsemissionsat oneormoreofitsenergycentersincompliancewiththe MATS.Thesehigheroperationsandmaintenancecostsare expectedtobecollectedfromcustomersthroughtheFAC orhigherbaserates.InDecember2014,theEPApublisheditsproposaltostrengthenthe2008nationalambientairqualitystandard forozone.AfinalstandardisexpectedinOctober2015, afterwhichstatesthatdonotmeetthestandardmust developandimplementplanstoachievecompliancewith theairqualitystandard.AmerenMissouriiscurrently evaluatingtheproposedstandardandthepossibleeffects onitsoperations.GreenhouseGasRegulationBeginningin2011,greenhousegasemissionsfromstationarysources,suchaspowerplants,becamesubjecttoregulationundertheCleanAirAct.Asaresultofthis action,AmerenMissouriisrequiredtoconsiderthe emissionsofgreenhousegasesinanyairpermit
application.Recognizingthedifficultiespresentedbyregulatingatoncevirtuallyallemittersofgreenhousegases,theEPA issuedthe"TailoringRule,"whichestablishednewhigher emissionthresholdsforregulatinggreenhousegas emissionsfromstationarysources,suchaspowerplants, throughoperatingpermitsandtheNSRprograms.Therule requiresanysourcethatalreadyhasanoperatingpermitto haveprovisionsrelatingtogreenhousegasemissions addedtoitspermituponrenewal.Currently,allAmeren Missourienergycentershaveoperatingpermitsthathave beenmodifiedtoaddressgreenhousegasemissions.In June2014,theUnitedStatesSupremeCourtruledthatthe EPAmayregulategreenhousegasemissionsthrough operatingpermitsandNSRprogramsatstationarysources thatarealreadysubjecttothoseprograms,butmaynot applyoperatingpermitsandNSRprogramstonon-stationarysourcessolelyasaresultoftheirgreenhousegas emissions.AmerenMissouridoesnotexpectthedecision tohaveasignificanteffectonitsoperations.InJanuary2014,theEPApublishedproposedregulationsthatwouldsetrevisedCO 2emissionsstandardsfornewpowerplants.Theproposedstandardswould establishseparateemissionslimitsfornewnatural-gas-firedplantsandnewcoal-firedplants.InJune2014,the EPAproposedtheCleanPowerPlan,whichsetsforthCO 2emissionsstandardsthatwouldbeapplicabletoexisting powerplants.TheproposedCleanPowerPlanwould requireeachstatetodevelopplanstoachieveCO 2 emissionstandardsthattheEPAcalculatedforeachstate.TheEPA believesthattheCleanPowerPlanwouldachievea30%
reductioninthenation'sexistingpowerplantCO 2emissionsfrom2005levelsby2030.Theproposedrule alsohasinterimgoalsofaggressivelyreducingCO 2emissionsby2020.TheEPAexpectstheproposedrulewill befinalizedin2015.Iftheproposedruleisfinalized,states wouldhaveonetothreeyearstodevelopcomplianceplans.
Stateswouldbeallowedtodevelopindependentplansorto joinwithotherstatestodevelopjointplans.Ameren MissouriisevaluatingtheproposedCleanPowerPlanand thepotentialimpacttoitsoperations,includingthose relatedtoelectricsystemreliability.Significantuncertainty existsregardingthestandardforexistingpowerplants,as thefinalizedrulecouldbedifferentfromtheproposedrule andwillbesubjecttolegalchallenges,eitherofwhichcould resultintheamountandtimingofCO 2emissionstandardsbeingrevised.PreliminarystudiessuggestthatiftheproposedCleanPowerPlanweretobefinalizedinitscurrentform,Ameren Missourimayneedtoincurneworacceleratedcapital expendituresandincreasedfuelcostsinordertoachieve compliance.Asproposed,theCleanPowerPlanwould requirethestates,includingMissouriandIllinois,tosubmit complianceplansasearlyas2016.Thestates'compliance plansmightrequireAmerenMissouritoconstructnatural gas-firedcombinedcyclegenerationandrenewable generation,atacurrentlyestimatedcostofapproximately
$2billionby2020,thatAmerenMissouribelieveswould otherwisenotbenecessarytomeettheenergyneedsofits customers.Additionally,Missouri'simplementationofthe proposedrules,ifadopted,couldresultintheclosureor alterationoftheoperationofsomeofAmerenMissouri's coalandnaturalgas-firedenergycenters,whichcould resultinincreasedoperatingcostsorimpairmentofassets.
AmerenMissouriexpectssubstantiallyallofthese increasedcosts,whichcouldbeginin2017,tobe recoverable,subjecttoMoPSCprudencereview,through substantiallyhigherelectricrateschargedtoitscustomers.Futurefederalandstatelegislationorregulationsthatmandatelimitsontheemissionofgreenhousegasesmay resultinsignificantincreasesincapitalexpendituresand operatingcosts,whichcouldleadtoincreasedliquidity needsandhigherfinancingcosts.Thesecompliancecosts couldbeprohibitiveatsomeofAmerenMissouri'senergy centers,whichcouldresultintheimpairmentoflong-lived assetsifcostsarenotrecoveredthroughrates.Mandatory limitsontheemissionofgreenhousegasescouldincrease costsforitscustomersorhaveamaterialadverseeffecton Ameren'sandAmerenMissouri'sresultsofoperations, 137 financialposition,andliquidityifregulatorsdelayordenyrecoveryinratesofthesecompliancecosts.Ameren'sand AmerenMissouri'searningsmightbenefitfromincreased investmenttocomplywithgreenhousegaslimitationsto theextentthattheinvestmentsarereflectedandrecovered timelyinrateschargedtocustomers.NSRandCleanAirLitigationInJanuary2011,theDepartmentofJustice,onbehalfoftheEPA,filedacomplaintagainstAmerenMissouriintheUnitedStatesDistrictCourtfortheEasternDistrictof Missouri.TheEPA'scomplaint,asamendedinOctober 2013,allegesthatinperformingprojectsatitsRushIsland coal-firedenergycenterin2007and2010,Ameren MissouriviolatedprovisionsoftheCleanAirActand Missourilaw.InJanuary2012,thedistrictcourtgranted,in part,AmerenMissouri'smotiontodismissvariousaspects oftheEPA'spenaltyclaims.TheEPA'sclaimsfor unspecifiedinjunctivereliefremain.AmerenMissouri believesitsdefensesaremeritoriousandisdefendingitself vigorously.However,therecanbenoassurancesthatitwill besuccessfulinitsefforts.Theultimateresolutionofthismattercouldhaveamaterialadverseeffectonthefutureresultsofoperations, financialposition,andliquidityofAmerenandAmeren Missouri.Aresolutioncouldresultinincreasedcapital expendituresfortheinstallationofpollutioncontrol equipment,increasedoperationsandmaintenance expenses,andpenalties.Weareunabletopredictthe ultimateresolutionofthesemattersorthecoststhatmight beincurred.CleanWaterActInAugust2014,theEPApublishedthefinalruleapplicabletocoolingwaterintakestructuresatexistingpowerplants.Therulerequiresacase-by-caseevaluation andplanforreducingthemortalityofaquaticorganisms impingedonthefacility'sintakescreensorentrained throughtheplant'scoolingwatersystem.Implementation ofthisrulewillbeadministeredthrougheachpowerplant's waterdischargepermittingprocess.Allcoal-firedand nuclearenergycentersatAmerenMissouriaresubjectto thisrule.TherulecouldhaveanadverseeffectonAmeren's andAmerenMissouri'sresultsofoperations,financial position,andliquidityifitsimplementationrequiresthe installationofcoolingtowersorextensivemodificationsto thecoolingwatersystemsatourenergycentersandif thoseinvestmentsarenotrecoveredtimelyinelectricrates chargedtoourcustomers.InApril2013,theEPAannounceditsproposaltorevisetheeffluentlimitationguidelinesapplicabletosteam electricgeneratingunitsundertheCleanWaterAct.Effluent limitationguidelinesarenationalstandardsforwastewater dischargestosurfacewaterthatarebasedonthe effectivenessofavailablecontroltechnology.TheEPA'sproposedruleraisedseveralcomplianceoptionsthatwould prohibiteffluentdischargesofcertain,butnotall,waste streamsandimposemorestringentlimitationsoncertain componentsinwastewaterdischargesfrompowerplants.If theruleisenactedasproposed,AmerenMissouriwouldbe subjecttotherevisedlimitationsbeginningasearlyas July1,2017,butnolaterthanJuly1,2022.TheEPAis expectedtoissuefinalguidelinesinSeptember2015.AshManagementInDecember2014,theEPAissuedregulationsregardingthemanagementanddisposalofCCR,whichwillaffectfuturedisposalandhandlingcostsatAmeren Missouri'senergycenters.TheEPAregulationswillbe effective180daysafterpublicationintheFederalRegister, whichisanticipatedinearly2015.Theruleallowsforthe managementofCCRasasolidwaste,aswellasforits continuedbeneficialuses,suchasrecycling,whichcould reducetheamounttobedisposed.Theruleestablished criteriaregardingthestructuralintegrity,location,and operationofCCRimpoundmentsandlandfills.Itrequires groundwatermonitoringandclosureofimpoundmentsif thegroundwaterstandardsundertherulearenotachieved.
AmerenMissouriiscurrentlyevaluatingtheruleto determineitsimpactoncurrentmanagementofCCRand thepotentialcostsassociatedwithcompliance.Ameren Missouriisalsoevaluatingthepotentialeffectthenewrule willhaveonitsAROsassociatedwithashponds.Ameren Missouri'scapitalexpenditureplanincludesthecostof constructinglandfillsaspartofitsenvironmental complianceplan.AmerenMissouriexpectscertainofitsash pondscouldbeclosedwithinthenextfiveyears.TheEPA'sregulationsissuedinDecember2014regardingthemanagementanddisposalofCCRdonot applytoinactiveashpondsatplantsnolongerinoperation, suchastheMeredosiaandHutsonvilleenergycenters.
RemediationWeareinvolvedinanumberofremediationactionstocleanupsitesaffectedbyhazardoussubstances,asrequiredbyfederalandstatelaw.Suchlawsrequirethat responsiblepartiesfundremediationactionsregardlessof theirdegreeoffault,thelegalityoforiginaldisposal,orthe ownershipofadisposalsite.AmerenMissouriandAmeren Illinoishaveeachbeenidentifiedbyfederalorstate governmentsasapotentiallyresponsiblepartyatseveral contaminatedsites.AsofDecember31,2014,AmerenIllinoisownedorwasotherwiseresponsiblefor44formerMGPsitesin Illinois.Thesesitesareinvariousstagesofinvestigation, evaluation,remediation,andclosure.AmerenIllinois estimatesitcouldsubstantiallyconcluderemediationefforts atmostofthesesitesby2018.TheICCallowsAmeren Illinoistorecoverremediationandlitigationcosts associatedwithitsformerMGPsitesfromitselectricand naturalgasutilitycustomersthroughenvironmental 138 adjustmentrateriders.Toberecoverable,suchcostsmustbeprudentlyincurred.Costsaresubjecttoannualreviewby theICC.AsofDecember31,2014,AmerenIllinois estimatedtheobligationrelatedtotheseformerMGPsites at$250millionto$314million.AmerenandAmerenIllinois recordedaliabilityof$250milliontorepresenttheir estimatedminimumobligationforthesesites,asnoother amountwithintherangewasabetterestimate.ThescopeandextenttowhichtheseformerMGPsitesareremediatedmayincreaseasremediationefforts continue.Considerableuncertaintyremainsinthese estimates,asmanyfactorscaninfluencetheultimateactual costs,includingsitespecificunanticipatedunderground structures,thedegreetowhichgroundwateris encountered,regulatorychanges,localordinances,andsite accessibility.Theactualcostsmayvarysubstantiallyfrom theseestimates.AmerenIllinoisformerlyusedanoff-sitelandfill,whichAmerenIllinoisdidnotown,inconnectionwiththe operationofapreviously-ownedenergycenter.Ameren Illinoiscouldberequiredtoperformcertainmaintenance activitiesatthatlandfill.AsofDecember31,2014,Ameren Illinoisestimatedtheobligationrelatedtothissiteat
$0.5millionto$6million.AmerenIllinoisrecordeda liabilityof$0.5milliontorepresentitsestimatedminimum obligationforthissite,asnootheramountwithintherange wasabetterestimate.AmerenIllinoisisalsoresponsible forthecleanupofsomeundergroundstoragetanksanda watertreatmentplantinIllinois.AsofDecember31,2014, AmerenIllinoisrecordedaliabilityof$0.7millionto representitsbestestimateoftheobligationforthesesites.In2008,theEPAissuedanadministrativeordertoAmerenMissouripertainingtoaformercoaltardistillery operatedbyKoppersCompanyoritspredecessorand successorcompanies.WhileAmerenMissouriisthecurrent ownerofthesite,whichislocatedinSt.Louis,Missouri,it didnotconductanyofthemanufacturingoperations involvingcoaltaroritsbyproducts.AmerenMissouri,along withtwootherpotentiallyresponsibleparties,areperforming asiteinvestigation.AsofDecember31,2014,Ameren Missouriestimateditsobligationat$2millionto$5million.
AmerenMissourirecordedaliabilityof$2millionto representitsestimatedminimumobligation,asnoother amountwithintherangewasabetterestimate.AmerenMissourialsoparticipatedintheinvestigationofvarioussiteslocatedinSauget,Illinois.In2000,theEPA notifiedAmerenMissouriandnumerousothercompanies, includingSolutia,Inc.,thatformerlandfillsandlagoonsat thosesitesmaycontainsoilandgroundwatercontamination.
ThesesitesareknownasSaugetArea2.Fromabout1926 until1976,AmerenMissourioperatedanenergycenter adjacenttoSaugetArea2.AmerenMissouricurrentlyownsa parcelofpropertyatSaugetArea2thatwasonceusedasa landfill.UnderthetermsofanAdministrativeOrderon Consent,AmerenMissourijoinedwithotherpotentially responsiblepartiestoevaluatetheextentofpotential contaminationwithrespecttoSaugetArea2.InDecember2013,theEPAissueditsrecordofdecisionforSaugetArea2approvingtheinvestigationand theremediationalternativesrecommendedbythe potentiallyresponsibleparties.Furthernegotiationamong thepotentiallyresponsiblepartieswilldeterminehowto fundtheimplementationoftheEPA-approvedcleanup remedies.AsofDecember31,2014,AmerenMissouri estimateditsobligationrelatedtoSaugetArea2at
$1millionto$2.5million.AmerenMissourirecordeda liabilityof$1milliontorepresentitsestimatedminimum obligation,asnootheramountwithintherangewasa betterestimate.In2012,AmerenMissourisignedanadministrativeorderwiththeEPAandagreedtoinvestigatesoiland groundwaterconditionsatanAmerenMissouri-owned substationinSt.Charles,Missouri.AsofDecember31, 2014,AmerenMissouriestimatedtheobligationrelatedto thiscleanupat$1.6millionto$4.5million.Ameren Missourirecordedaliabilityof$1.6milliontorepresentits estimatedminimumobligationforthissite,asnoother amountwithintherangewasabetterestimate.Ouroperationsorthoseofourpredecessorcompaniesinvolvetheuseof,disposalof,andinappropriate circumstances,thecleanupofsubstancesregulatedunder environmentallaws.Weareunabletodeterminewhether suchpracticeswillresultinfutureenvironmental commitmentsorwillaffectourresultsofoperations, financialposition,orliquidity.Pumped-storageHydroelectricFacilityBreachInDecember2005,therewasabreachoftheupperreservoiratAmerenMissouri'sTaumSaukpumped-storagehydroelectricenergycenter.Thisresultedinsignificant floodinginthelocalarea,whichdamagedastatepark.
AmerenMissourihadliabilityinsurancecoverageforthe TaumSaukincident,subjecttocertainlimitsand
deductibles.In2010,AmerenMissourisuedaninsurancecompanythatwasprovidingAmerenMissouriwithliabilitycoverage onthedateoftheTaumSaukincident.Inthelitigation, AmerenMissouriclaimsthattheinsurancecompany breacheditsdutytoindemnifyAmerenMissouriforlosses resultingfromtheincident.InSeptember2014,theUnited StatesDistrictCourtfortheEasternDistrictofMissouri orderedthecasetobetransferredtotheUnitedStates DistrictCourtfortheSouthernDistrictofNewYorkfortrial.
Thetransferorderhasbeenstayedpendingresolutionof AmerenMissouri'sOctober2014appealofthatordertothe UnitedStatesCourtofAppealsfortheEighthCircuit.InJune2014,AmerenMissourireachedasettlementwithanothergroupofinsurerswhoprovidedAmeren MissouriwithliabilitycoverageonthedateoftheTaum Saukincident.Inaccordancewiththatsettlement,Ameren Missourireceivedapaymentof$27million.AsofDecember31,2014,AmerenMissourihadaninsurancereceivableof$41million.Itultimatelyexpectsto collectthisreceivablefromtheremaininginsurance 139 companyinthependinglitigationdescribedabove.Thisreceivableisincludedin"Otherassets"onAmeren'sand AmerenMissouri'sbalancesheetsasofDecember31, 2014.Ameren'sandAmerenMissouri'sresultsof operations,financialposition,andliquiditycouldbe adverselyaffectedifAmerenMissouri'sremainingliability insuranceclaimisnotpaid.Asbestos-relatedLitigationAmeren,AmerenMissouri,andAmerenIllinoishavebeennamed,alongwithnumerousotherparties,inanumberoflawsuitsfiledbyplaintiffsclaimingvarying degreesofinjuryfromasbestosexposureatourpresentor formerenergycenters.MosthavebeenfiledintheCircuit CourtofMadisonCounty,Illinois.Thetotalnumberof defendantsnamedineachcasevaries,with78asthe averagenumberofpartiesasofDecember31,2014.Each lawsuitseeksunspecifieddamagesthat,ifawardedattrial, typicallywouldbesharedamongthevariousdefendants.Thefollowingtablepresentsthependingasbestos-relatedlawsuitsfiledagainsttheAmerenCompaniesasof December31,2014:
Ameren Ameren Missouri AmerenIllinoisTotal (a)145577 0(a)TotaldoesnotequalthesumofthesubsidiaryunitlawsuitsbecausesomeofthelawsuitsnamemultipleAmerenentitiesas defendants.AtDecember31,2014,Ameren,AmerenMissouri,andAmerenIllinoishadliabilitiesof$12million,$5million,and$7million,respectively,recordedtorepresenttheirbest estimatesoftheirobligationsrelatedtoasbestosclaims.AmerenIllinoishasatariffridertorecoverthecostsofIPasbestos-relatedlitigationclaims,subjecttothe followingterms:90%ofthecashexpendituresinexcessof theamountincludedinbaseelectricratesistoberecovered fromatrustfundthatwasestablishedwhenAmeren acquiredIP.AtDecember31,2014,thetrustfundbalance was$22million,includingaccumulatedinterest.Ifcash expendituresarelessthantheamountinbaserates, AmerenIllinoiswillcontribute90%ofthedifferencetothe trustfund.Oncethetrustfundisdepleted,90%ofallowed cashexpendituresinexcessofbaserateswillberecovered throughchargesassessedtocustomersunderthetariff rider.Theriderwillpermitrecoveryfromelectriccustomers withinIP'shistoricalserviceterritory.AmerenIllinoisMunicipalTaxesAmerenIllinoispreviouslyreceivedtaxliabilitynoticesfromeightmunicipalities,includingtheCityofO'Fallon,allegingthatAmerenIllinoisfailedtocollectprior-period taxesfromcertaincustomersineachmunicipality.InNovember2014,AmerenIllinoisreachedasettlement agreementwiththeCityofO'Fallonandpaid$1millionfor theprior-periodtaxes.Withrespecttothesevenother communities,AmerenIllinoisbelievesitsdefensestothe allegationsaremeritoriousanditspotentiallossis
immaterial.NOTE16-DIVESTITURETRANSACTIONSANDDISCONTINUEDOPERATIONSOnDecember2,2013,AmerencompletedthedivestitureofNewAERtoIPHinaccordancewiththetransactionagreementbetweenAmerenandIPHdated March14,2013,asamendedbyaletteragreementdated December2,2013.Amerenretainedcertainpensionandpostretirementbenefitobligationsassociatedwithcurrentandformer employeesofAER,withtheexceptionofthepensionand postretirementbenefitobligationsassociatedwithcurrent andformeremployeesofEEI,whichwereassumedbyIPH.
AmerenretainedtheMeredosiaandHutsonvilleenergy centers,includingtheirAROs.Theseenergycenterswere abandonedandhadanimmaterialpropertyandplantasset balanceasofDecember31,2014.TheEPA'sregulations issuedinDecember2014regardingthemanagementand disposalofCCR,asdiscussedinNote15-Commitments andContingencies,donotapplytoinactiveashpondsat plantsnolongerinoperation,suchastheMeredosiaand Hutsonvilleenergycenters.AllotherAROsassociatedwith AERwereassumedbyNewAERorbyRocklandCapital,the third-partybuyeroftheGrandTowerenergycenter,as discussedbelow.ThetransactionagreementwithIPH,asamended,providesthatiftheElgin,GibsonCity,andGrandTower gas-firedenergycentersaresubsequentlysoldbyMedina ValleyandifMedinaValleyreceivesadditionalproceeds fromsuchsale,MedinaValleywillpayGencoanyproceeds fromsuchsale,netoftaxesandotherexpenses,inexcess ofthe$137.5millionpreviouslypaidtoGenco.On January31,2014,MedinaValleycompletedthesaleofthe Elgin,GibsonCity,andGrandTowergas-firedenergy centerstoRocklandCapitalforatotalpurchasepriceof
$168million.TheagreementwithRocklandCapitalrequires
$17millionofthepurchasepricetobeheldinescrowuntil January31,2016,tofundcertainindemnityobligations,if any,ofMedinaValley.TheRocklandCapitalescrow receivablebalanceandthecorrespondingpayabledueto GencoisreflectedonAmeren'sDecember31,2014, consolidatedbalancesheetin"Otherassets"andin"Other deferredcreditsandliabilities,"respectively.MedinaValley expectstopayGencoanyremainingportionoftheescrow balanceonJanuary31,2016.Amerendidnotrecordagain fromitssaleoftheElgin,GibsonCity,andGrandTower gas-firedenergycenters.
140 DiscontinuedOperationsPresentationInMarch2013,AmerendeterminedthatNewAERandtheElgin,GibsonCity,andGrandTowergas-firedenergycentersqualifiedfordiscontinuedoperationspresentation.Inaddition,inDecember2013,coincidingwiththecompletionofthedivestitureofNewAERtoIPH,AmerendeterminedthattheMeredosiaandHutsonvilleenergycenters,whichwerebothnot operating,hadbeenabandonedandalsoqualifiedfordiscontinuedoperationspresentation.AmerenhasbeguntodemolishtheHutsonvilleenergycenterandexpectstodemolishtheMeredosiaenergycenterthereafter.Thedisposalgroupshavebeen aggregatedinthedisclosuresbelow.ThefollowingtablepresentsthecomponentsofdiscontinuedoperationsinAmeren's consolidatedstatementofincome(loss)fortheyearsendedDecember31,2014,2013,and2012:Yearended201420132012Operatingrevenues
...........................................................
$1$1,037$1,047Operatingexpenses
...........................................................
(2)(1,207)(a)(3,474)(b)Operatingincome(loss)
........................................................
(1)(170)(2,427)Otherincome(loss)
...........................................................
-(1)-Interestcharges
..............................................................
-(39)(56)Income(loss)beforeincometaxes
...............................................
(1)(210)(2,483)Incometax(expense)benefit
....................................................
-(13)987Income(loss)fromdiscontinuedoperations,netoftaxes
..............................$(1)$(223)$(1,496)(a)Includesa$201millionpretaxlossondisposalrelatingtotheNewAERdivestiture.(b)Includesanoncashpretaxassetimpairmentchargeof$2.58billiontoreducethecarryingvalueofAER'senergycenterstotheirestimatedfairvalueunderheldandusedaccountingguidance.Ameren'sresultsofoperationsfortheyearendedDecember31,2014,includeadjustmentsfortheNewAERnetworkingcapitalamountowedtoIPHandforcertain contingentliabilitiesassociatedwiththeNewAERdivestiture.
In2014,Amerenpaid$13milliontoIPHforthefinalworking capitaladjustmentandaportionofthepreviously-recorded contingentliabilities.Additionally,Amerenrecognizedthe operatingrevenuesandoperatingexpensesassociatedwith theElgin,GibsonCity,andGrandTowergas-firedenergy centerspriortothecompletionoftheirsaletoRockland CapitalonJanuary31,2014.ThefinaltaxbasisoftheAER disposalgroupandtherelatedtaxbenefitresultingfromthe transactionwithIPHaredependentupontheresolutionoftax mattersunderaudit.Itisreasonablypossibleinthenext12 monthsthesetaxauditswillbecompleted.Asaresult,tax expenseandbenefitsultimatelyrealizedfromthedivestitures maydiffermateriallyfromthoserecordedasofDecember31, 2014,includingthefinalresolutionofAmeren'suncertaintax
positions.AmerenrecordedapretaxchargetoearningsrelatedtotheNewAERdivestitureof$201millionfortheyearended December31,2013.Thelosswasrecordedin"Operating expenses"withinthecomponentsofthediscontinued operationsstatementofincome(loss).Amerendidnot receiveanycashproceedsfromIPHforthedivestitureof NewAER.In2013,Amerenadjustedtheaccumulated deferredincometaxesonitsconsolidatedbalancesheetto reflecttheexcessoftaxbasisoverfinancialreportingbasis ofitsstockinvestmentinAER.Thischangeinbasis resultedinadiscontinuedoperationsdeferredtaxexpense of$99million,whichwaspartiallyoffsetbytheexpected taxbenefitsof$86millionrelatedtothepretaxlossfrom discontinuedoperations,includingthelossondisposal, duringtheyearendedDecember31,2013.Asdiscussedabove,onJanuary31,2014,MedinaValleycompletedthesaleoftheElgin,GibsonCity,and GrandTowergas-firedenergycenterstoRocklandCapital foratotalpurchasepriceof$168million.Amerendidnot recognizeagainfromthethird-partysaletoRockland Capitalforanyvalueinexcessofits$137.5millioncarrying valueforthisdisposalgroupbecauseanyexcessamount thatMedinaValleymayreceive,netoftaxesandother expenses,overthecarryingvalue,willultimatelybepaidto GencopursuanttothetransactionagreementwithIPH.NewAERandtheElgin,GibsonCity,andGrandTowerenergycenterswereimpairedunderheldandused accountingguidancein2012.Inearly2012,theobservable marketpriceforpowerfordeliveryinthatyearandinfuture yearsintheMidwestsharplydeclinedbelow2011levels.As aresultofthissharpdeclineinthemarketpriceofpower andtherelatedimpactonelectricmargins,Ameren evaluated,duringthefirstquarterof2012,whetherthe carryingvaluesofMerchantGenerationcoal-firedenergy centerswererecoverable.AERG'sDuckCreekenergy center'scarryingvalueexceededitsestimatedundiscounted futurecashflows.Asaresult,Amerenrecordedanoncash pretaxassetimpairmentchargeof$628milliontoreduce thecarryingvalueofthatenergycentertoitsestimatedfair valueduringthefirstquarterof2012.InDecember2012, Amerendeterminedthattheestimatedundiscountedcash flowsduringtheperiodinwhichitexpectedtocontinueto ownitsMerchantGenerationenergycenterswouldbe insufficienttorecoverthecarryingvalueofthoseenergy centers.Accordingly,Amerenrecordedanoncashpretax impairmentchargeof$1.95billioninthefourthquarterof
2012.141 ThefollowingtablepresentsthecarryingamountsofthecomponentsofassetsandliabilitiessegregatedonAmeren'sconsolidatedbalancesheetsasdiscontinuedoperationsatDecember31,2014and2013:December31,2014December31,2013AssetsofdiscontinuedoperationsAccountsreceivableandunbilledrevenue
............................................
$-$5Materialsandsupplies
...........................................................
-5Propertyandplant,net
...........................................................
-142Accumulateddeferredincometaxes,net (a)............................................
15 13Totalassetsofdiscontinuedoperations
................................................$15$165LiabilitiesofdiscontinuedoperationsAccountspayableandothercurrentobligations
.......................................
$1$5Assetretirementobligations (b).....................................................
32 40Totalliabilitiesofdiscontinuedoperations
..............................................$33$45(a)TheDecember31,2014balanceprimarilyconsistsofdeferredincometaxassetsrelatedtotheabandonedMeredosiaandHutsonvilleenergy centers.(b)IncludesAROsassociatedwiththeabandonedMeredosiaandHutsonvilleenergycentersof$32millionand$31millionatDecember31,2014and2013,respectively.AmerenhascontinuingtransactionswithNewAER.AmerenIllinoishaspowersupplyagreementswithMarketingCompany,whicharearesultofthepower procurementprocessinIllinoisadministeredbytheIPA,as requiredbytheIllinoisPublicUtilitiesAct.AmerenIllinois continuestopurchasepowerandtopurchasetrade receivablesasrequiredbyIllinoislaw.AmerenIllinoisand ATXIcontinuetoselltransmissionservicestoMarketing Company.Also,thetransactionagreementrequiresAmeren (parent)tomaintaincertainguaranteesdiscussedbelow.
Immediatelypriortothetransactionagreementclosing,the moneypoolborrowingsthroughwhichAmerenprovided cashcollateraltoMarketingCompanywereconvertedtoa notepayabletoAmeren,withinterest,onDecember2, 2015,orsooner,ascashcollateralrequirementsare reduced.Amerenhasdeterminedthatthecontinuingcash flowsgeneratedbythesearrangementsarenotsignificant and,accordingly,arenotdeemedtobedirectcashflowsof thedivestedbusiness.Additionally,thesearrangementsdo notprovideAmerenwiththeabilitytosignificantlyinfluence theoperatingresultsofNewAER.Amerendidnothave significantcontinuinginvolvementwithormaterialcash flowsfromtheElgin,GibsonCity,orGrandTowerenergy centersaftertheirsale.PursuanttotheIPHtransactionagreement,asamended,Amerenisobligatedtopayupto$29millionfor certaincontingentliabilitiesasofDecember31,2014, whichwereincludedin"Othercurrentliabilities"on Ameren'sDecember31,2014consolidatedbalancesheet.ThenotereceivablefromMarketingCompanyrelatedtothecashcollateralsupportprovidedtoNewAERwas
$12millionand$18millionatDecember31,2014and 2013,respectively,andwasreflectedonAmeren's consolidatedbalancesheetin"Miscellaneousaccountsand notesreceivable"atDecember31,2014.Thisreceivableis duetoAmeren,withinterest,onDecember2,2015,or soonerascashcollateralrequirementsarereduced.In addition,asofDecember31,2014,ifAmeren'scredit ratingshadbeenbelowinvestmentgrade,Amerencould havebeenrequiredtopostadditionalcashcollateralinsupportofNewAERintheamountof$26million,which includes$11millioncurrentlycoveredbyAmeren guarantees.ThiscashcollateralsupportispartofAmeren's obligationtoprovidecertainlimitedcreditsupporttoNew AERuntilDecember2,2015,asdiscussedbelow.AmerenGuaranteesandLettersofCreditTheIPHtransactionagreement,asamended,requiresAmerentomaintainitsfinancialobligationswithrespecttoallcreditsupportprovidedtoNewAERasofthe December2,2013closingdateofthedivestiture.Ameren mustalsoprovidesuchadditionalcreditsupportas requiredbycontractsenteredintopriortotheclosingdate, ineachcaseuntilDecember2,2015.IPHshallindemnify AmerenforanypaymentsAmerenmakespursuanttothese creditsupportobligationsifthecounterpartydoesnot returnthepostedcollateraltoAmeren.IPH's indemnificationobligationissecuredbycertainAERGand Gencoassets.Inaddition,Dynegyhasprovidedalimited guaranteeof$25milliontoAmerenpursuanttowhich Dynegywill,amongotherthings,guaranteeIPH's indemnificationobligationsuntilDecember2,2015.Inadditiontothe$29millionofcontingentliabilitiesrecordedonAmeren'sDecember31,2014consolidated balancesheet,Amerenhadatotalof$114millionin guaranteesoutstandingforNewAERthatwerenotrecorded onAmeren'sDecember31,2014consolidatedbalance sheet,whichincluded:
$106millionrelatedtoguaranteessupportingMarketingCompanyforphysicallyandfinancially settledpowertransactionswithitscounterpartiesthat wereinplaceattheDecember2,2013closingofthe divestiture,aswellasforMarketingCompany'sclearing brokerandotherserviceagreements.IfMarketing Companydidnotfulfillitsobligationstothese counterpartieswhohadactiveopenpositionsasof December31,2014,Amerenwouldhavebeenrequired underitsguaranteestoprovide$11milliontothe
counterparties.
142
$8millionrelatedtorequirementsforleaseagreementsandpotentialenvironmentalobligations.IfNewAER hadnotfulfilleditsleaseobligationasofDecember31, 2014,Amerenwouldhavebeenrequiredtoprovide approximately$7milliontotheleasingcounterparty.Additionally,atDecember31,2014,Amerenhadissuedlettersofcredittotaling$9millionascreditsupport onbehalfofNewAER.Amerenhasnotrecordedareserveforthesecontingentobligationsbecauseitdoesnotbelievea paymentwithrespecttoanyoftheseguaranteesorletters ofcreditwasprobableasofDecember31,2014.NOTE17-SEGMENTINFORMATIONAmerenhastworeportablesegments:AmerenMissouriandAmerenIllinois.AmerenMissouriandAmeren Illinoiseachhaveonereportablesegment.TheAmeren MissourisegmentforbothAmerenandAmerenMissouri includesalltheoperationsofAmerenMissouriasdescribed inNote1-SummaryofSignificantAccountingPolicies.
TheAmerenIllinoissegmentforbothAmerenandAmeren IllinoisconsistsofalloftheoperationsofAmerenIllinoisas describedinNote1-SummaryofSignificantAccounting Policies.ThecategorycalledOtherprimarilyincludes Amerenparentcompanyactivities,AmerenServices,and ATXI.TheOthercategoryalsoincludescertaincorporate activitiespreviouslyincludedintheMerchantGeneration segment.SeeNote16-DivestitureTransactionsand DiscontinuedOperationsforadditionalinformation.ThefollowingtablepresentsinformationaboutthereportedrevenuesandspecifieditemsreflectedinAmeren'snetincomeattributabletoAmerenCorporationandcapitalexpendituresfromcontinuingoperationsfortheyearsended December31,2014,2013,and2012,andtotalassetsincontinuingoperationsasofDecember31,2014,2013,and2012:
Ameren Missouri AmerenIllinoisOther IntersegmentEliminationsConsolidated 2014Externalrevenues
..............................................$3,526$2,496$31$-$6,053Intersegmentrevenues
..........................................2722(31)-Depreciationandamortization
....................................4732639-745Interestanddividendincome
.....................................2872-37Interestcharges
...............................................21111218-341Incometaxes
.................................................2291435-377Netincome(loss)attributabletoAmerenCorporationfromcontinuing operations
.................................................390201(4)-587Capitalexpenditures
............................................747835203 (a)-1,785Totalassets
..................................................13,5418,381942(203)22,661 (b)2013 Externalrevenues..............................................$3,516$2,307$15$-$5,838Intersegmentrevenues..........................................2542 (31)-Depreciationandamortization....................................4542439-706Interestanddividendincome.....................................2721-30Interestcharges...............................................21014345-398Incometaxes(benefit)..........................................242110(41)-311Netincome(loss)attributabletoAmerenCorporationfromcontinuing operations.................................................395160(43)-512Capitalexpenditures............................................64870130 (a)-1,379Totalassets
..................................................12,9047,454752(233)20,877 (b)2012 Externalrevenues..............................................$3,252$2,524$5$-$5,781Intersegmentrevenues..........................................2013 (24)-Depreciationandamortization....................................44022112-673Interestanddividendincome.....................................32---32Interestcharges...............................................22312940-392Incometaxes(benefit)..........................................25294(39)-307Netincome(loss)attributabletoAmerenCorporationfromcontinuing operations.................................................416141(41)-516Capitalexpenditures............................................59544226 (a)-1,063Totalassets
..................................................13,0437,2821,228(934)20,619 (b)(a)Includestheeliminationofintercompanytransfers.
(b)Excludestotalassetsfromdiscontinuedoperationsof$15million,$165million,and$1,611millionasofDecember31,2014,2013,and2012, respectively.
143 SELECTEDQUARTERLYINFORMATION(Unaudited)(Inmillions,exceptpershareamounts)
Ameren 2014 2013Quarterended (a)March31June30September30December31March31June30September30December31Operatingrevenues
.....................$1,594$1,419$1,670$1,370$1,475$1,403$1,638$1,322Operatingincome
.......................246322561125185261567171Netincome(loss)
.......................9815029549(143)9630438NetincomeattributabletoAmerenCorporation-continuingoperations
......$97$150$294$46$54$105$305$48Netincome(loss)attributabletoAmerenCorporation-discontinuedoperations
....(1)(1)(1)2(199)(10)(3)(11)Netincome(loss)attributabletoAmerenCorporation
...................$96$149$293$48$(145)$95$302$37Earningspercommonshare-basic-continuingoperations
.................$0.40$0.62$1.21$0.19$0.22$0.44$1.26$0.19Earnings(loss)percommonshare-basic-discontinuedoperations
................-(0.01)-0.01(0.82)(0.05)(0.01)(0.04)Earnings(loss)percommonshare-basic...$0.40$0.61$1.21$0.20$(0.60)$0.39$1.25$0.15Earningspercommonshare-diluted-continuingoperations
.................$0.40$0.62$1.20$0.19$0.22$0.44$1.25$0.19Earnings(loss)percommonshare-diluted-discontinuedoperations
................-(0.01)-0.01(0.82)(0.05)(0.01)(0.04)Earnings(loss)percommonshare-diluted.............................$0.40$0.61$1.20$0.20$(0.60)$0.39$1.24$0.15(a)Thesumofquarterlyamounts,includingpershareamounts,maynotequalamountsreportedforyear-to-dateperiods.Thisisduetotheeffectsofroundingandtochangesinthenumberofweighted-averagesharesoutstandingeachperiod.AmerenMissouriQuarterended Operating Revenues Operating Income Net Income (Loss)NetIncome(Loss)Availableto Common StockholderMarch31,2014
.............................$817$119$48$47March31,2013
.............................7961114140June30,2014
..............................
900 243 127 126June30,2013
..............................8891798584September30,2014
.........................
1,097 394 223 222September30,2013
.........................
1,093 417 239 238December31,2014
..........................
739 29 (5)(5)December31,2013..........................763963333AmerenIllinois Quarterended Operating Revenues Operating Income Net IncomeNetIncomeAvailableto Common StockholderMarch31,2014
..................................$774$120$54$53March31,2013..................................684853231June30,2014
...................................519752928June30,2013...................................516873231September30,2014
..............................5721587575September30,2013..............................5471587777December31,2014
...............................633974645December31,2013...............................564852221ITEM9.CHANGESINANDDISAGREEMENTSWITHACCOUNTANTSONACCOUNTINGANDFINANCIALDISCLOSURE None.144 ITEM9A.CONTROLSANDPROCEDURES(a)EvaluationofDisclosureControlsandProceduresAsofDecember31,2014,evaluationswereperformedunderthesupervisionandwiththeparticipationofmanagement,includingtheprincipalexecutiveofficerandprincipalfinancialofficerofeachoftheAmerenCompanies,oftheeffectivenessofthedesignandoperationofsuchregistrant'sdisclosurecontrolsandprocedures(asdefinedinRules13a-15(e)and15d-15(e) oftheExchangeAct).Basedonthoseevaluations,asofDecember31,2014,theprincipalexecutiveofficerandprincipal financialofficerofeachoftheAmerenCompaniesconcludedthatsuchdisclosurecontrolsandproceduresareeffectiveto provideassurancethatinformationrequiredtobedisclosedinsuchregistrant'sreportsfiledorsubmittedundertheExchangeActisrecorded,processed,summarized,andreportedwithinthetimeperiodsspecifiedintheSEC'srulesandformsandsuch informationisaccumulatedandcommunicatedtoitsmanagement,includingitsprincipalexecutiveandprincipalfinancial officers,toallowtimelydecisionsregardingrequireddisclosure.(b)Management'sReportonInternalControloverFinancialReportingManagementisresponsibleforestablishingandmaintainingadequateinternalcontroloverfinancialreporting,assuchtermisdefinedinExchangeActRules13a-15(f)and15d-15(f).Underthesupervisionofandwiththeparticipationofmanagement,includingtheprincipalexecutiveofficerandprincipalfinancialofficer,anevaluationwasconductedofthe effectivenessofeachoftheAmerenCompanies'internalcontroloverfinancialreportingbasedontheframeworkin InternalControl-IntegratedFramework(2013)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO).Aftermakingthatevaluation
,managementconcludedthateachoftheAmerenCompanies'internalcontroloverfinancialreportingwaseffectiveasofDecember31,2014.TheeffectivenessofAmeren'sinternalcontroloverfinancial reportingasofDecember31,2014,hasbeenauditedbyPricewaterhouseCoopersLLP,anindependentregisteredpublic accountingfirm,asstatedinitsreporthereinunderPartII,Item8.Thisannualreportdoesnotincludeanattestationreportof AmerenMissouri'sorAmerenIllinois'(theSubsidiaryRegistrants)independentregisteredpublicaccountingfirmregarding internalcontroloverfinancialreporting.Management'sreportforeachoftheSubsidiaryRegistrantsisnotsubjectto attestationbyanindependentregisteredpublicaccountingfirm.Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenessintofutureperiodsaresubjecttotheriskthatinternalcontrolsmightbecome inadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmightdeteriorate.(c)ChangeinInternalControlTherehasbeennochangeintheAmerenCompanies'internalcontroloverfinancialreportingduringtheirmostrecentfiscalquarterthathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theirinternalcontroloverfinancial
reporting.ITEM9B.OTHERINFORMATIONTheAmerenCompanieshavenoinformationreportableunderthisitemthatwasrequiredtobedisclosedinareportonSECForm8-Kduringthefourthquarterof2014thathasnotpreviouslybeenreportedonanSECForm8-K.PARTIIIITEM10.DIRECTORS,EXECUTIVEOFFICERS,ANDCORPORATEGOVERNANCEInformationrequiredbyItems401,405,406and407(c)(3),(d)(4)and(d)(5)ofSECRegulationS-KforAmerenwillbeincludedinitsdefinitiveproxystatementfor its2015annualmeetingofshareholdersfiledpursuantto SECRegulation14A;itisincorporatedhereinbyreference.
InformationrequiredbytheseSECRegulationS-Kitemsfor AmerenMissouriandAmerenIllinoiswillbeincludedin eachcompany'sdefinitiveinformationstatementforits 2015annualmeetingofshareholdersfiledpursuanttoSEC Regulation14C;itisincorporatedhereinbyreference.
Specifically,referenceismadetothefollowingsectionsof Ameren'sdefinitiveproxystatementandeachofAmeren Missouri'sandAmerenIllinois'definitiveinformation statement:"InformationConcerningNomineestotheBoard ofDirectors,""Section16(a)BeneficialOwnership ReportingCompliance,""CorporateGovernance"and "BoardStructure."InformationconcerningexecutiveofficersoftheAmerenCompaniesrequiredbyItem401ofSECRegulation S-Kisreportedunderaseparatecaptionentitled"Executive OfficersoftheRegistrants"inPartIofthisreport.AmerenMissouriandAmerenIllinoisdonothaveseparatelydesignatedstandingauditcommittees,butinstead useAmeren'sauditandriskcommitteetoperformsuch committeefunctionsfortheirboardsofdirectors.These companiesdonothavesecuritieslistedontheNYSEand thereforearenotsubjecttotheNYSElistingstandards.
WalterJ.GalvinservesaschairmanofAmeren'sauditand riskcommitteeandCatherineS.Brune,EllenM.Fitzsimmons andStephenR.Wilsonserveasmembers.Theboardof directorsofAmerenhasdeterminedthatWalterJ.Galvin qualifiesasanauditcommitteefinancialexpertandthatheis "independent"asthattermisusedinSECRegulation14A.
145 Also,onthesamebasisasreportedabove,theboardsofdirectorsofAmerenMissouriandAmerenIllinoisusethenominatingandcorporategovernancecommitteeof Ameren'sboardofdirectorstoperformsuchcommittee functions.Thiscommitteeisresponsibleforthenomination ofdirectorsandcorporategovernancepractices.Ameren's nominatingandcorporategovernancecommitteewill considerdirectornominationsfromshareholdersin accordancewithitsPolicyRegardingNominationsof Directors,whichcanbefoundonAmeren'swebsite:
www.ameren.com.Toencourageethicalconductinitsfinancialmanagementandreporting,Amerenhasadoptedacodeof ethicsthatappliestotheprincipalexecutiveofficer,the president,theprincipalfinancialofficer,theprincipalaccountingofficer,thecontroller,andthetreasurerofeach oftheAmerenCompanies.Amerenhasalsoadoptedacode ofbusinessconductthatappliestothedirectors,officers, andemployeesoftheAmerenCompanies.Itisreferredto asthePrinciplesofBusinessConduct.TheAmeren CompaniesmakeavailablefreeofchargethroughAmeren's website(www.ameren.com)theCodeofEthicsandthe PrinciplesofBusinessConduct.Anyamendmenttothe CodeofEthicsorthePrinciplesofBusinessConductand anywaiverfromaprovisionoftheCodeofEthicsorthe PrinciplesofBusinessConductasitrelatestotheprincipal executiveofficer,thepresident,theprincipalfinancial officer,theprincipalaccountingofficer,thecontrollerand thetreasurerofeachoftheAmerenCompanieswillbe postedonAmeren'swebsitewithinfourbusinessdays followingthedateoftheamendmentorwaiver.ITEM11.EXECUTIVECOMPENSATIONInformationrequiredbyItems402and407(e)(4)and(e)(5)ofSECRegulationS-KforAmerenwillbeincludedinitsdefinitiveproxystatementforits2015annualmeetingofshareholdersfiledpursuanttoSECRegulation14A;itisincorporated hereinbyreference.InformationrequiredbytheseSECRegulationS-KitemsforAmerenMissouriandAmerenIllinoiswillbe includedineachcompany'sdefinitiveinformationstatementforits2015annualmeetingofshareholdersfiledpursuanttoSEC Regulation14C;itisincorporatedhereinbyreference.Specifically,referenceismadetothefollowingsectionsofAmeren's definitiveproxystatementandeachofAmerenMissouri'sandAmerenIllinois'definitiveinformationstatement:"Executive Compensation"and"HumanResourcesCommitteeInterlocksandInsiderParticipation."ITEM12.SECURITYOWNERSHIPOFCERTAINBENEFICIALOWNERSANDMANAGEMENTANDRELATEDSTOCKHOLDER MATTERSEquityCompensationPlanInformationThefollowingtablepresentsinformationasofDecember31,2014,withrespecttothesharesofAmeren'scommonstockthatmaybeissuedunderitsexistingequitycompensationplans.PlanCategoryColumnANumberofSecuritiesToBeIssuedUponExerciseofOutstandingOptions,WarrantsandRightsColumnB Weighted-AverageExercisePriceofOutstandingOptions,WarrantsandRightsColumnCNumberofSecuritiesRemainingAvailableforFutureIssuanceEquityCompensationPlans(excludingsecuritiesreflectedinColumnA)Equitycompensationplansapprovedbysecurityholders (a).....................2,335,780(b)7,964,166Equitycompensationplansnotapprovedbysecurityholders
......................
---Total.................................
2,335,780 (b)7,964,166(a)Consistsofthe2006IncentivePlan,whichwasapprovedbyshareholdersinMay2006,andthe2014IncentivePlan,whichwasapprovedbyshareholdersinApril2014,andexpiresApril2024.The2014Planreplacedthe2006PlanforanynewgrantsmadeafterApril24,2014.Pursuanttograntsofperformanceshareunits(PSUs)underthe2006Plan,649,018ofthesecuritiesrepresentPSUsthatvestedasof December31,2014(includingaccruedandreinvesteddividends),and1,622,649ofthesecuritiesrepresenttargetPSUsgrantedbutnotvested (includingaccruedandreinvesteddividends)asofDecember31,2014(includingoutstandingawardsunderthe2014PlanasofDecember31, 2014).TheactualnumberofsharesissuedinrespectofthePSUswillvaryfrom0%to200%ofthetargetlevel,dependinguponthe achievementoftotalshareholderreturnobjectivesestablishedforsuchawards.ForadditionalinformationaboutthePSUs,includingpayout calculations,see"CompensationDiscussionandAnalysis-Long-TermIncentives:PerformanceShareUnitProgram("PSUP")"inAmeren's definitiveproxystatementforits2015annualmeetingofshareholdersfiledpursuanttoSECRegulation14A.64,113ofthesecuritiesrepresent sharesthatmaybeissuedasofDecember31,2014,tosatisfyobligationsundertheAmerenCorporationDeferredCompensationPlanfor membersoftheboardofdirectors.(b)EarnedPSUsanddeferredcompensationstockunitsarepaidinsharesofAmerencommonstockonaone-for-onebasis.Accordingly,thePSUsanddeferredcompensationstockunitsdonothaveaweighted-averageexerciseprice.AmerenMissouriandAmerenIllinoisdonothaveseparateequitycompensationplans.
146 SecurityOwnershipofCertainBeneficialOwnersandManagementTheinformationrequiredbyItem403ofSECRegulationS-KforAmerenwillbeincludedinitsdefinitiveproxystatementforits2015annualmeetingofshareholdersfiledpursuanttoSECRegulation14A;itisincorporatedhereinbyreference.InformationrequiredbythisSECRegulationS-KitemforAmerenMissouriandAmerenIllinoiswillbeincludedineach company'sdefinitiveinformationstatementforits2015annualmeetingofshareholdersfiledpursuanttoSECRegulation14C; itisincorporatedhereinbyreference.Specifically,referenceismadetothefollowingsectionofAmeren'sdefinitiveproxy statementandeachofAmerenMissouri'sandAmerenIllinois'definitiveinformationstatement:"SecurityOwnership."ITEM13.CERTAINRELATIONSHIPSANDRELATEDTRANSACTIONSANDDIRECTORINDEPENDENCEInformationrequiredbyItem404andItem407(a)ofSECRegulationS-KforAmerenwillbeincludedinitsdefinitiveproxystatementforits2015annualmeetingofshareholdersfiledpursuanttoSECRegulation14A;itisincorporatedhereinbyreference.InformationrequiredbytheseSECRegulationS-KitemsforAmerenMissouriandAmerenIllinoiswillbeincludedin eachcompany'sdefinitiveinformationstatementforits2015annualmeetingofshareholdersfiledpursuanttoSEC Regulation14C;itisincorporatedhereinbyreference.Specifically,referenceismadetothefollowingsectionsofAmeren's definitiveproxystatementandeachofAmerenMissouri'sandAmerenIllinois'definitiveinformationstatement:"PolicyandProceduresWithRespecttoRelatedPersonTransactions"and"DirectorIndependence."ITEM14.PRINCIPALACCOUNTINGFEESANDSERVICESInformationrequiredbyItem9(e)ofSECSchedule14AfortheAmerenCompanieswillbeincludedinthedefinitiveproxystatementofAmerenandthedefinitiveinformationstatementsofAmerenMissouriandAmerenIllinoisfortheir2015annualmeetingsofshareholdersfiledpursuanttoSECRegulations14Aand14C,respectively;itisincorporatedhereinbyreference.
Specifically,referenceismadetothefollowingsectionofAmeren'sdefinitiveproxystatementandeachofAmerenMissouri's andAmerenIllinois'definitiveinformationstatement:"IndependentRegisteredPublicAccountingFirm."
147 PARTIVITEM15.EXHIBITSANDFINANCIALSTATEMENTSCHEDULES(a)(1)FinancialStatementsPageNo.AmerenReportofIndependentRegisteredPublicAccountingFirm.............................................................67ConsolidatedStatementofIncome(Loss)-YearsEndedDecember31,2014,2013,and2012................................69ConsolidatedStatementofComprehensiveIncome(Loss)-YearsEndedDecember31,2014,2013,and2012...................70ConsolidatedBalanceSheet-December31,2014and2013...........................................................71ConsolidatedStatementofCashFlows-YearsEndedDecember31,2014,2013,and2012...................................72ConsolidatedStatementofStockholders'Equity-YearsEndedDecember31,2014,2013,and2012............................73AmerenMissouri ReportofIndependentRegisteredPublicAccountingFirm.............................................................68StatementofIncomeandComprehensiveIncome-YearsEndedDecember31,2014,2013,and2012..........................74BalanceSheet-December31,2014and2013......................................................................75StatementofCashFlows-YearsEndedDecember31,2014,2013,and2012.............................................76StatementofStockholders'Equity-YearsEndedDecember31,2014,2013,and2012......................................77AmerenIllinois ReportofIndependentRegisteredPublicAccountingFirm.............................................................68StatementofIncomeandComprehensiveIncome-YearsEndedDecember31,2014,2013,and2012..........................78BalanceSheet-December31,2014and2013......................................................................79StatementofCashFlows-YearsEndedDecember31,2014,2013,and2012.............................................80StatementofStockholders'Equity-YearsEndedDecember31,2014,2013,and2012......................................81(a)(2)FinancialStatementSchedulesScheduleI-CondensedFinancialInformationofParent-Ameren:CondensedStatementofIncome(Loss)andComprehensiveIncome(Loss)-YearsEndedDecember31,2014,2013,and2012...149 CondensedBalanceSheet-December31,2014and2013........................................................149CondensedStatementofCashFlows-YearsEndedDecember31,2014,2013,and2012................................150ScheduleII-ValuationandQualifyingAccountsfortheyearsendedDecember31,2014,2013,and2012.......................151ScheduleIandIIshouldbereadinconjunctionwiththeaforementionedfinancialstatements.Certainscheduleshavebeenomittedbecausetheyarenotapplicableorbecausetherequireddataisshownintheaforementionedfinancial statements.(a)(3)Exhibits-referenceismadetotheExhibitIndex
...........................................
155(b)ExhibitIndex
.......................................................................
155 148 SCHEDULEI-CONDENSEDFINANCIALINFORMATIONOFPARENTAMERENCORPORATIONCONDENSEDSTATEMENTOFINCOME(LOSS)ANDCOMPREHENSIVEINCOME(LOSS)FortheYearsEndedDecember31,2014,2013,and2012(Inmillions)201420132012Operatingrevenues
................................................................
$-$-$-Operatingexpenses
................................................................
112617Operatingloss
....................................................................
(11)(26)(17)Equityinearningsofsubsidiaries
.....................................................
607546546Interestincomefromaffiliates
........................................................
3 33Totalotherincome(expense),net
.....................................................
2(5)(4)Interestcharges
...................................................................
164239Incometax(benefit)
................................................................
(2)(36)(27)NetIncomeAttributabletoAmerenCorporation-ContinuingOperations
.......................
587512516NetLossAttributabletoAmerenCorporation-DiscontinuedOperations
.......................
(1)(223)(1,490)NetIncome(Loss)AttributabletoAmerenCorporation
.....................................$586$289$(974)NetIncomeAttributabletoAmerenCorporation-ContinuingOperations
.......................$587$512$516OtherComprehensiveIncome(Loss),NetofTaxes:Pensionandotherpostretirementbenefitplanactivity,netofincometaxes(benefit)of$(7),$16,and$(6),respectively
........................................................
(12)30(8)ComprehensiveIncomefromContinuingOperationsAttributabletoAmerenCorporation
..........
575542508NetLossAttributabletoAmerenCorporation-DiscontinuedOperations
.......................
(1)(223)(1,490)OtherComprehensiveIncome(Loss)fromDiscontinuedOperations,NetofIncomeTaxes
.........-(19)50ComprehensiveLossfromDiscontinuedOperationsAttributabletoAmerenCorporation
...........
(1)(242)(1,440)ComprehensiveIncome(Loss)AttributabletoAmerenCorporation
...........................$574$300$(932)SCHEDULEI-CONDENSEDFINANCIALINFORMATIONOFPARENTAMERENCORPORATIONCONDENSEDBALANCESHEET(Inmillions)December31,2014December31,2013 Assets:Cashandcashequivalents
..........................................................
$1$11Advancestomoneypool
............................................................
55 334Accountsreceivable-affiliates
.......................................................
28 18Notesreceivable-affiliates
..........................................................
94 9Miscellaneousaccountsandnotesreceivable
............................................
39 125Currentaccumulateddeferredincometaxes,net
.........................................
143 41Othercurrentassets
...............................................................
14 1Totalcurrentassets
..............................................................
374 539Investmentsinsubsidiaries-continuingoperations
......................................
6,680 6,336Investmentsinsubsidiaries-discontinuedoperations
.....................................
(4)(5)Notereceivable-ATXI
.............................................................
100 51Accumulateddeferredincometaxes,net
...............................................
264 570Otherassets
.....................................................................
152 141Totalassets
........................................................................$7,566$7,632LiabilitiesandStockholders'Equity:Currentmaturitiesoflong-termdebt
...................................................
$-$425Short-termdebt
..................................................................
585 368Accountspayable
.................................................................
-119Accountspayable-affiliates
.........................................................
88 4Othercurrentliabilities
.............................................................
52 20Totalcurrentliabilities
............................................................
725 936Otherdeferredcreditsandliabilities
...................................................
128 152Totalliabilities
..................................................................
853 1,088CommitmentsandContingencies(Notes4and5)Stockholders'Equity:Commonstock,$.01parvalue,400.0sharesauthorized-sharesoutstandingof242.6
...........
2 2Otherpaid-incapital,principallypremiumoncommonstock
................................
5,617 5,632 Retained earnings.................................................................
1,103 907 Accumulatedothercomprehensiveincome(loss)
........................................
(9)3Totalstockholders'equity
.........................................................
6,713 6,544Totalliabilitiesandstockholders'equity
..................................................$7,566$7,632 149 SCHEDULEI-CONDENSEDFINANCIALINFORMATIONOFPARENTAMERENCORPORATIONCONDENSEDSTATEMENTOFCASHFLOWSFortheYearsEndedDecember31,2014,2013,and2012(Inmillions)201420132012Netcashflowsprovidedbyoperatingactivities
...........................................$514$453$532Cashflowsfrominvestingactivities:Moneypooladvances,net
.........................................................
279 (371)24Notesreceivable-affiliates,net
.....................................................
(134)(23)(20)Investmentsinsubsidiaries
........................................................
(280)(50)(2)Distributionsfromsubsidiaries
.....................................................
215 12 1Proceedsfromnotereceivable-MarketingCompany
....................................
95 6-Contributionstonotereceivable-MarketingCompany
...................................
(89)(5)-Other.........................................................................
(12)(3)(5)Netcashflowsprovidedby(usedin)investingactivities
....................................
74 (445)18Cashflowsfromfinancingactivities:Dividendsoncommonstock
.......................................................
(390)(388)(382)Short-termdebt,net
.............................................................
217 368 (148)Maturitiesoflong-termdebt
.......................................................
(425)--Netcashflowsusedinfinancingactivities
...............................................
(598)(20)(530)Netchangeincashandcashequivalents
................................................$(10)$(12)$20Cashandcashequivalentsatbeginningofyear
...........................................
11 23 3Cashandcashequivalentsatendofyear
...............................................
$1$11$23Cashdividendsreceivedfromconsolidatedsubsidiaries
....................................$340$570$610Noncashinvestingactivity-divestiture
.................................................
$-$494$-Noncashinvestingactivity-investmentsinsubsidiaries
....................................
(19)--Noncashfinancingactivity-dividendsoncommonstock
...................................
--(7)AMERENCORPORATION(parentcompanyonly)NOTESTOCONDENSEDFINANCIALSTATEMENTSDecember31,2014NOTE1-BASISOFPRESENTATIONAmerenCorporation(parentcompanyonly)isapublicutilityholdingcompanythatconductssubstantiallyallofitsbusinessoperationsthroughitssubsidiaries.Inaccordancewithauthoritativeaccountingguidance,AmerenCorporation(parentcompanyonly)hasaccountedforwhollyownedsubsidiariesusingtheequitymethod.Thesefinancialstatementsarepresentedonacondensedbasis.Beginningin2014,unrecognizedtaxbenefitsarerecordedasareductiontothedeferredtaxassetsfornetoperatinglossesandtaxcreditcarryforwardswithin"Accumulateddeferredincometaxes,net"onAmerenCorporation's(parent companyonly)balancesheets.AtDecember31,2014,unrecognizedtaxbenefitsof$53millionwererecordedin "Accumulateddeferredincometaxes,net"onAmerenCorporation's(parentcompanyonly)balancesheet.AtDecember31, 2013,unrecognizedtaxbenefitsof$53millionpreviouslyrecordedin"Otherdeferredcreditsandliabilities"onAmeren Corporation's(parentcompanyonly)balancesheetwerereclassifiedto"Accumulateddeferredincometaxes,net"for comparativepurposes.SeeNote1-SummaryofSignificantAccountingPoliciesunderPartII,Item8,ofthisreportfor additionalinformation.AdditionaldisclosuresrelatingtotheparentcompanyfinancialstatementsareincludedwithinthecombinednotesunderPartII,Item8,ofthisreport.SeeNote1-SummaryofSignificantAccountingPoliciesandNote14-RelatedParty TransactionsunderPartII,Item8,ofthisreportforinformationonthetaxallocationagreementbetweenAmeren(parent)and itssubsidiaries.NOTE2-SHORT-TERMDEBTANDLIQUIDITYSeeNote4-Short-termDebtandLiquidityunderPartII,Item8,ofthisreportforadescriptionanddetailsofshort-termdebtandliquidityneedsofAmerenCorporation(parentcompanyonly).NOTE3-LONG-TERMOBLIGATIONSInMay2014,Ameren(parent)repaidatmaturity$425millionofits8.875%seniorunsecurednotes,plusaccruedinterest.Thenoteswererepaidwithproceedsfromcommercialpaperissuances.
150 NOTE4-COMMITMENTSANDCONTINGENCIESSeeNote15-CommitmentsandContingenciesandNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8,ofthisreportforadescriptionofallmaterialcontingencies,guarantees,andlettersofcreditoutstandingofAmerenCorporation(parentcompanyonly).NOTE5-NEWAERDIVESTITUREANDDISCONTINUEDOPERATIONSInDecember2012,Amerendeterminedthatitintendedto,anditwasprobablethatitwould,exititsMerchantGenerationbusinessbeforetheendofthepreviouslyestimatedusefullivesofthatbusiness'slong-livedassets.Asaresultofthe2012determination,AmerenCorporation(parentcompanyonly)recordedapretaximpairmentchargeof$1.88billiontoreduceits investmentincertainoftheMerchantGenerationsegment'scoalandnatural-gas-firedenergycenterstotheirestimatedfair values.InDecember2013,Amerencompletedadivestiturethatincludedasignificantportionofthatbusiness.Asaresultof thedivestiturein2013,AmerenCorporation(parentcompanyonly)recordedapretaxlossondisposalof$201million.These chargeswereincludedwithin"NetLossAttributabletoAmerenCorporation-DiscontinuedOperations"intheAmeren Corporation(parentcompanyonly)CondensedStatementofIncome(Loss)andComprehensiveIncome(Loss)fortheyearsendedDecember31,2013and2012.The"Miscellaneousaccountsandnotesreceivable"ontheDecember31,2013AmerenCorporation(parentcompanyonly)CondensedBalanceSheetincludedareceivablefromDynegyrelatedtothenon-state-regulatedsubsidiarymoneypool borrowingbalanceasofthedivestituredateofcertainNewAERsubsidiaries.Additionally,apayabletoDynegyofthe estimatedworkingcapitaladjustmentrequiredunderthetermsoftheagreementwithIPHwasreflectedin"Accountspayable"ontheDecember31,2013AmerenCorporation(parentcompanyonly)CondensedBalanceSheet.In2014,thereceivableand payablewerefinalizedandsettled,alongwithcertaincontingentliabilitiesassociatedwiththeNewAERdivestiture,resultingin anet$13millionpaymenttoIPH.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8,ofthisreportforadditionalinformationontheimpairmentchargesrecognizedin2013and2012aswellasthedivestiture.SCHEDULEII-VALUATIONANDQUALIFYINGACCOUNTSFORTHEYEARSENDEDDECEMBER31,2014,2013,AND2012(inmillions)ColumnAColumnBColumnCColumnDColumnE DescriptionBalanceat BeginningofPeriod (1)ChargedtoCostsandExpenses (2)ChargedtoOther Accounts (a)Deductions (b)BalanceatEndofPeriod Ameren:Deductedfromassets-allowancefordoubtfulaccounts:
2014.......................................$18$36$4$37$21 2013.......................................173543818 2012.......................................203023517Deferredtaxvaluationallowance:
2014.......................................$7$3$-$-$10 2013.......................................25--7 2012.......................................11--2AmerenMissouri:Deductedfromassets-allowancefordoubtfulaccounts:
2014.......................................$5$16$-$13$8 2013.......................................516-165 2012.......................................711-135Deferredtaxvaluationallowance:
2014.......................................$1$-$-$-$1 2013.......................................1---1 2012.......................................1---1AmerenIllinois:Deductedfromassets-allowancefordoubtfulaccounts:
2014.......................................$13$20$4$24$13 2013.......................................121942213 2012.......................................131922212Deferredtaxvaluationallowance:
2014.......................................$1$-$-$-$1 2013.......................................1---1 2012.......................................-1--1(a)UncollectibleaccountreserveassociatedwithreceivablespurchasedbyAmerenIllinoisfromalternativeretailelectricsuppliers,asrequiredbytheIllinoisPublicUtilitiesAct.(b)Uncollectibleaccountschargedoff,lessrecoveries.
151 SIGNATURESPursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,eachregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized.Thesignaturesforeachundersignedcompanyshallbedeemedtorelateonlytomattershavingreferencetosuchcompanyoritssubsidiaries.AMERENCORPORATION (registrant)Date:March2,2015 By/s/WarnerL.BaxterWarnerL.Baxter Chairman,PresidentandChiefExecutiveOfficerPursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedateindicated./s/WarnerL.BaxterWarnerL.BaxterChairman,PresidentandChiefExecutiveOfficer,andDirector (PrincipalExecutiveOfficer)March2,2015/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentand ChiefFinancialOfficer (PrincipalFinancialOfficer)March2,2015/s/BruceA.SteinkeBruceA.SteinkeSeniorVicePresident,Finance,and ChiefAccountingOfficer (PrincipalAccountingOfficer)March2,2015
- CatherineS.BruneDirectorMarch2,2015
- J.EdwardColemanDirectorMarch2,2015
- EllenM.FitzsimmonsDirectorMarch2,2015
- WalterJ.GalvinDirectorMarch2,2015
- RichardJ.HarshmanDirectorMarch2,2015
- GayleP.W.JacksonDirectorMarch2,2015
- JamesC.JohnsonDirectorMarch2,2015
- StevenH.LipsteinDirectorMarch2,2015
- PatrickT.StokesDirectorMarch2,2015
- StephenR.WilsonDirectorMarch2,2015
- JackD.WoodardDirectorMarch2,2015*By/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.
Attorney-in-FactMarch2,2015 152 UNIONELECTRICCOMPANY (registrant)Date:March2,2015 By/s/MichaelL.MoehnMichaelL.MoehnChairmanandPresidentPursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedateindicated./s/MichaelL.MoehnMichaelL.MoehnChairmanandPresident,andDirector(PrincipalExecutiveOfficer)March2,2015/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentand ChiefFinancialOfficer,andDirector (PrincipalFinancialOfficer)March2,2015/s/BruceA.SteinkeBruceA.SteinkeSeniorVicePresident,Finance,and ChiefAccountingOfficer (PrincipalAccountingOfficer)March2,2015
- DanielF.ColeDirectorMarch2,2015
- FadiM.DiyaDirectorMarch2,2015
- GregoryL.NelsonDirectorMarch2,2015*By/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.
Attorney-in-FactMarch2,2015 153 AMERENILLINOISCOMPANY (registrant)Date:March2,2015 By/s/RichardJ.MarkRichardJ.MarkChairmanandPresidentPursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedateindicated./s/RichardJ.MarkRichardJ.MarkChairmanandPresident,andDirector(PrincipalExecutiveOfficer)March2,2015/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentand ChiefFinancialOfficer,andDirector (PrincipalFinancialOfficer)March2,2015/s/BruceA.SteinkeBruceA.SteinkeSeniorVicePresident,Finance,and ChiefAccountingOfficer (PrincipalAccountingOfficer)March2,2015
- DanielF.ColeDirectorMarch2,2015
- CraigD.NelsonDirectorMarch2,2015
- GregoryL.NelsonDirectorMarch2,2015*By/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.
Attorney-in-FactMarch2,2015 154 EXHIBITINDEXThedocumentslistedbelowarebeingfiledorhavepreviouslybeenfiledonbehalfoftheAmerenCompaniesandareincorporatedhereinbyreferencefromthedocumentsindicatedandmadeaparthereof.Exhibitsnotidentifiedaspreviouslyfiledarefiledherewith:ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:PlanofAcquisition,Reorganization,Arrangement,LiquidationorSuccession 2.1 AmerenTransactionAgreement,datedasofMarch14,2013,betweenAmeren CorporationandIllinoisPowerHoldings,LLCMarch19,2013Form8-K,Exhibit2.1, FileNo.1-147562.2AmerenLetterAgreement,datedDecember2,2013,betweenAmerenCorporationandIllinois PowerHoldings,LLC,amendingthe TransactionAgreement,datedasof March14,2013December4,2013Form8-K,Exhibit2.2, FileNo.1-14756ArticlesofIncorporation/By-Laws 3.1(i)AmerenRestatedArticlesofIncorporationof
AmerenAnnexFtoPartIoftheRegistration StatementonFormS-4,FileNo.33-64165 3.2(i)AmerenCertificateofAmendmenttoAmeren's RestatedArticlesofIncorporationfiled December14,19981998Form10-K,Exhibit3(i),
FileNo.1-14756 3.3(i)AmerenCertificateofAmendmenttoAmeren's RestatedArticlesofIncorporationfiled April21,2011April21,2011Form8-K,Exhibit3(i),
FileNo.1-14756 3.4(i)AmerenCertificateofAmendmenttoAmeren's RestatedArticlesofIncorporationfiled December18,2012December18,2012Form8-K,Exhibit3.1(i),
FileNo.1-14756 3.5(i)AmerenMissouriRestatedArticlesofIncorporationofAmerenMissouri1993Form10-K,Exhibit3(i),
FileNo.1-2967 3.6(i)AmerenIllinoisRestatedArticlesofIncorporationof AmerenIllinois2010Form10-K,Exhibit3.4(i),
FileNo.1-36723.7(ii)AmerenBy-LawsofAmeren,asamended December14,2012December18,2012Form8-K, Exhibit3.1(ii),FileNo.1-147563.8(ii)AmerenMissouriBylawsofAmerenMissouri,asamendedDecember12,2014December18,2014Form8-K, Exhibit3.1,FileNo.1-29673.9(ii)AmerenIllinoisBylawsofAmerenIllinois,asamended December12,2014December18,2014Form8-K, Exhibit3.2,FileNo.1-3672InstrumentsDefiningRightsofSecurityHolders,IncludingIndentures 4.1 AmerenIndenture,datedasofDecember1,2001 fromAmerentoTheBankofNewYork MellonTrustCompany,N.A.,assuccessor trustee,relatingtoseniordebtsecurities (AmerenIndenture)Exhibit4.5,FileNo.333-81774
4.2 AmerenFirstSupplementalIndenturetoAmeren
SeniorIndenturedatedasofMay19,2008June30,2008Form10-Q,Exhibit4.1, FileNo.1-14756
4.3 Ameren
AmerenMissouriIndentureofMortgageandDeedofTrust, datedJune15,1937(AmerenMissouri Mortgage),fromAmerenMissouritoThe BankofNewYorkMellon,assuccessor trustee,asamendedMay1,1941,and SecondSupplementalIndenturedated May1,1941ExhibitB-1,FileNo.2-4940 155 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.4 AmerenAmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofJuly1,1956August2,1956Form8-K,Exhibit2, FileNo.1-2967
4.5 Ameren
AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofApril1, 1971April1971Form8-K,Exhibit6, FileNo.1-2967
4.6 Ameren
AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofFebruary1, 1974February1974Form8-K,Exhibit3, FileNo.1-2967
4.7 Ameren
AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofJuly7,1980Exhibit4.6,FileNo.2-69821
4.8 Ameren
AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofOctober1, 1993,relativetoSeries20281993Form10-K,Exhibit4.8, FileNo.1-2967
4.9 Ameren
AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofFebruary1, 20002000Form10-K,Exhibit4.1, FileNo.1-2967 4.10 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedAugust15,2002August23,2002Form8-K,Exhibit4.3, FileNo.1-2967 4.11 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedMarch5,2003, relativetoSeriesBBMarch11,2003Form8-K,Exhibit4.4, FileNo.1-2967 4.12 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedApril1,2003, relativetoSeriesCCApril10,2003Form8-K,Exhibit4.4, FileNo.1-2967 4.13 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedJuly15,2003, relativetoSeriesDDAugust4,2003Form8-K,Exhibit4.4, FileNo.1-2967 4.14 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedOctober1,2003, relativetoSeriesEEOctober8,2003Form8-K,Exhibit4.4, FileNo.1-2967 4.15 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedFebruary1,2004, relativetoSeries2004A(1998A)March31,2004Form10-Q,Exhibit4.1, FileNo.1-2967 4.16 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedFebruary1,2004, relativetoSeries2004B(1998B)March31,2004Form10-Q,Exhibit4.2, FileNo.1-2967 4.17 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedFebruary1,2004, relativetoSeries2004C(1998C)March31,2004Form10-Q,Exhibit4.3, FileNo.1-2967 4.18 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedFebruary1,2004, relativetoSeries2004H(1992)March31,2004Form10-Q,Exhibit4.8, FileNo.1-2967 4.19 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedMay1,2004 relativetoSeriesFFMay18,2004Form8-K,Exhibit4.4, FileNo.1-2967 4.20 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedSeptember1, 2004relativetoSeriesGGSeptember23,2004Form8-K,Exhibit4.4, FileNo.1-2967 4.21 Ameren Ameren Missouri SupplementalIndenturetotheAmerenMissouriMortgagedatedJanuary1,2005 relativetoSeriesHHJanuary27,2005Form8-K,Exhibit4.4, FileNo.1-2967 4.22 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedJuly1,2005 relativetoSeriesIIJuly21,2005Form8-K,Exhibit4.4, FileNo.1-2967 156 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.23 AmerenAmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedDecember1, 2005relativetoSeriesJJDecember9,2005Form8-K,Exhibit4.4, FileNo.1-2967 4.24 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedJune1,2007 relativetoSeriesKKJune15,2007Form8-K,Exhibit4.5, FileNo.1-2967 4.25 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedApril1,2008 relativetoSeriesLLApril8,2008Form8-K,Exhibit4.7, FileNo.1-2967 4.26 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedJune1,2008 relativetoSeriesMMJune19,2008Form8-K,Exhibit4.5, FileNo.1-2967 4.27 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedMarch1,2009 relativetoSeriesNNMarch23,2009Form8-K,Exhibit4.5, FileNo.1-2967 4.28 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedMay15,2012Exhibit4.45,FileNo.333-182258 4.29 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedSeptember1, 2012relativetoSeriesOOSeptember11,2012Form8-K,Exhibit4.4, FileNo.1-2967 4.30 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedApril1,2014 relativetoSeriesPPApril4,2014Form8-K,Exhibit4.5, FileNo.1-2967 4.31 Ameren AmerenMissouriLoanAgreement,datedasofDecember1, 1992,betweentheMissouriEnvironmental AuthorityandAmerenMissouri,together withIndentureofTrustdatedasof December1,1992,betweentheMissouri EnvironmentalAuthorityandUMBBank, N.A.assuccessortrusteetoMercantile BankofSt.Louis,N.A.1992Form10-K,Exhibit4.38, FileNo.1-2967 4.32 Ameren AmerenMissouriFirstAmendment,datedasofFebruary1, 2004,toLoanAgreementdatedasof December1,1992,betweentheMissouri EnvironmentalAuthorityandAmeren
MissouriMarch31,2004Form10-Q,Exhibit4.10, FileNo.1-2967 4.33 Ameren AmerenMissouriSeries1998ALoanAgreement,datedasof September1,1998,betweentheMissouri EnvironmentalAuthorityandAmeren
MissouriSeptember30,1998Form10-Q, Exhibit4.28,FileNo.1-2967 4.34 Ameren AmerenMissouriFirstAmendment,datedasofFebruary1, 2004,toSeries1998ALoanAgreement datedasofSeptember1,1998,between theMissouriEnvironmentalAuthorityand AmerenMissouriMarch31,2004Form10-Q,Exhibit4.11, FileNo.1-2967 4.35 Ameren AmerenMissouriSeries1998BLoanAgreement,datedasof September1,1998,betweentheMissouri EnvironmentalAuthorityandAmeren
MissouriSeptember30,1998Form10-Q, Exhibit4.29,FileNo.1-2967 4.36 Ameren AmerenMissouriFirstAmendment,datedasofFebruary1, 2004,toSeries1998BLoanAgreement datedasofSeptember1,1998,between theMissouriEnvironmentalAuthorityand AmerenMissouriMarch31,2004Form10-Q,Exhibit4.12, FileNo.1-2967 4.37 Ameren AmerenMissouriSeries1998CLoanAgreement,datedasof September1,1998,betweentheMissouri EnvironmentalAuthorityandAmeren
MissouriSeptember30,1998Form10-Q, Exhibit4.30,FileNo.1-2967 157 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.38 AmerenAmerenMissouriFirstAmendment,datedasofFebruary1, 2004,toSeries1998CLoanAgreement datedasofSeptember1,1998,between theMissouriEnvironmentalAuthorityand AmerenMissouriMarch31,2004Form10-Q,Exhibit4.13, FileNo.1-2967 4.39 Ameren AmerenMissouriIndenture,datedasofAugust15,2002, fromAmerenMissouritoTheBankofNew YorkMellon,assuccessortrustee(relating toseniorsecureddebtsecurities)(Ameren MissouriIndenture)August23,2002Form8-K,Exhibit4.1, FileNo.1-2967 4.40 Ameren AmerenMissouriFirstSupplementalIndenturetotheAmeren MissouriIndenture,datedasofMay15, 2012Exhibit4.48,FileNo.333-182258 4.41 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedMarch10,2003,establishing the5.50%SeniorSecuredNotesdue2034 (includingtheglobalnote)March11,2003Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.42 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedApril9,2003,establishingthe 4.75%SeniorSecuredNotesdue2015 (includingtheglobalnote)April10,2003Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.43 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedJuly28,2003,establishingthe 5.10%SeniorSecuredNotesdue2018 (includingtheglobalnote)August4,2003Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.44 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedOctober7,2003,establishing the4.65%SeniorSecuredNotesdue2013 (includingtheglobalnote)October8,2003Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.45 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedMay13,2004,establishingthe 5.50%SeniorSecuredNotesdue2014 (includingtheglobalnote)May18,2004Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.46 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedSeptember1,2004, establishingthe5.10%SeniorSecured Notesdue2019(includingtheglobalnote)September23,2004Form8-K,Exhibits4.2 and4.3,FileNo.1-2967 4.47 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedJanuary27,2005,establishing the5.00%SeniorSecuredNotesdue2020 (includingtheglobalnote)January27,2005Form8-K,Exhibits4.2 and4.3,FileNo.1-2967 4.48 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedJuly21,2005,establishingthe 5.30%SeniorSecuredNotesdue2037 (includingtheglobalnote)July21,2005Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.49 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedDecember8,2005, establishingthe5.40%SeniorSecured Notesdue2016(includingtheglobalnote)December9,2005Form8-K,Exhibits4.2 and4.3,FileNo.1-2967 4.50 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedJune15,2007,establishing the6.40%SeniorSecuredNotesdue2017 (includingtheglobalnote)June15,2007Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.51 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedApril8,2008,establishingthe 6.00%SeniorSecuredNotesdue2018 (includingtheglobalnote)April8,2008Form8-K,Exhibits4.3and 4.5,FileNo.1-2967 158 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.52 AmerenAmerenMissouriAmerenMissouriIndentureCompany Order,datedJune19,2008,establishing the6.70%SeniorSecuredNotesdue2019 (includingtheglobalnote)June19,2008Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.53 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedMarch20,2009,establishing 8.45%SeniorSecuredNotesdue2039 (includingtheglobalnote)March23,2009Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.54 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedSeptember11,2012, establishing3.90%SeniorSecuredNotes due2042(includingtheglobalnote)September11,2012Form8-K,Exhibit4.2, FileNo.1-2967 4.55 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedApril4,2014,establishing 3.50%SeniorSecuredNotesdue2024 (includingtheglobalnote)April4,2014Form8-K,Exhibit4.2,File No.1-2967 4.56 Ameren AmerenIllinoisIndenture,datedasofDecember1,1998, fromCentralIllinoisPublicService Company(nowknownasAmerenIllinois) toTheBankofNewYorkMellonTrust Company,N.A.,assuccessortrustee(CIPS
Indenture)Exhibit4.4,FileNo.333-59438 4.57 Ameren AmerenIllinoisFirstSupplementalIndenturetotheCIPS Indenture,datedasofJune14,2006June19,2006Form8-K,Exhibit4.2, FileNo.1-3672 4.58 Ameren AmerenIllinoisSecondSupplementalIndenturetotheCIPS Indenture,datedasofMarch1,2010Exhibit4.17,FileNo.333-166095 4.59 Ameren AmerenIllinoisThirdSupplementalIndenturetotheCIPS Indenture,datedasofOctober1,20102010Form10-K,Exhibit4.59, FileNo.1-3672 4.60 Ameren AmerenIllinoisAmerenIllinoisGlobalNote,dated October1,2010,representingCIPS IndentureSeniorNotes,6.125%due20282010Form10-K,Exhibit4.60, FileNo.1-3672 4.61 Ameren AmerenIllinoisAmerenIllinoisGlobalNote,dated October1,2010,representingCIPS IndentureSeniorNotes,6.70%Series SecuredNotesdue20362010Form10-K,Exhibit4.62, FileNo.1-3672 4.62 Ameren AmerenIllinoisIndentureofMortgageandDeedofTrust betweenIllinoisPowerCompany (predecessorininteresttoCILCOand AmerenIllinois)andBankersTrust Company(nowknownasDeutscheBank TrustCompanyAmericas),astrustee,dated asofApril1,1933(CILCOMortgage),
SupplementalIndenturebetweenthesame partiesdatedasofJune30,1933, SupplementalIndenturebetweenCILCO (predecessorininteresttoAmerenIllinois) andthetrustee,datedasofJuly1,1933, SupplementalIndenturebetweenthesame partiesdatedasofJanuary1,1935,and SupplementalIndenturebetweenthesame partiesdatedasofApril1,1940ExhibitB-1,RegistrationNo.2-1937; ExhibitB-1(a),RegistrationNo.2-2093;and ExhibitA,April1940Form8-K, FileNo.1-2732 4.63 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedDecember1,1949December1949Form8-K,ExhibitA, FileNo.1-2732 4.64 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedJuly1,1957July1957Form8-K,ExhibitA, FileNo.1-2732 4.65 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedFebruary1,1966February1966Form8-K,ExhibitA, FileNo.1-2732 159 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.66 AmerenAmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedJanuary15,1992January30,1992Form8-K,Exhibit4(b),
FileNo.1-2732 4.67 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedJune1,2006forthe SeriesAAandBBJune19,2006Form8-K,Exhibit4.11, FileNo.1-2732 4.68 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedDecember1,2008forthe SeriesCCDecember9,2008Form8-K,Exhibit4.5, FileNo.1-2732 4.69 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedasofOctober1,2010October7,2010Form8K,Exhibit4.4, FileNo.1-14756 4.70 Ameren AmerenIllinoisIndenture,datedasofJune1,2006,from CILCO(predecessorininteresttoAmeren Illinois)toTheBankofNewYorkMellon TrustCompany,N.A.,assuccessortrustee (CILCOIndenture)June19,2006Form8-K,Exhibit4.3, FileNo.1-2732 4.71 Ameren AmerenIllinoisFirstSupplementalIndenturetotheCILCO Indenture,datedOctober1,2010October7,2010Form8K,Exhibit4.1, FileNo.1-3672 4.72 Ameren AmerenIllinoisSecondSupplementalIndenturetothe CILCOIndenturedatedasofJuly21,2011September30,2011Form10-Q,Exhibit4.1, FileNo.1-3672 4.73 Ameren AmerenIllinoisCILCOIndentureCompanyOrder,dated June14,2006,establishingthe6.20%
SeniorSecuredNotesdue2016(including theglobalnote)andthe6.70%Senior SecuredNotesdue2036(includingthe globalnote)June19,2006Form8-K,Exhibit4.6, FileNo.1-2732 4.74 Ameren AmerenIllinoisCILCOIndentureCompanyOrder,dated December9,2008,establishingthe8.875%
SeniorSecuredNotesdue2013(including theglobalnote)December9,2008Form8-K,Exhibits4.2 and4.3,FileNo.1-2732 4.75 Ameren AmerenIllinoisGeneralMortgageIndentureandDeedof Trust,datedasofNovember1,1992 betweenIllinoisPowerCompany (predecessorininteresttoAmerenIllinois) andTheBankofNewYorkMellonTrust Company,N.A.,assuccessortrustee (AmerenIllinoisMortgage)1992Form10-K,Exhibit4(cc),
FileNo.1-3004 4.76 Ameren AmerenIllinoisSupplementalIndenture,datedasof March1,1998,toAmerenIllinoisMortgage forSeriesSExhibit4.41,FileNo.333-71061 4.77 Ameren AmerenIllinoisSupplementalIndenture,datedasof March1,1998,toAmerenIllinoisMortgage forSeriesTExhibit4.42,FileNo.333-71061 4.78 Ameren AmerenIllinoisSupplementalIndentureamendingthe AmerenIllinoisMortgagedatedasof June15,1999June30,1999Form10-Q,Exhibit4.2, FileNo.1-3004 4.79 Ameren AmerenIllinoisSupplementalIndenture,datedasof July15,1999,toAmerenIllinoisMortgage forSeriesUJune30,1999Form10-Q,Exhibit4.4, FileNo.1-3004 4.80 Ameren AmerenIllinoisSupplementalIndentureamendingthe AmerenIllinoisMortgagedatedasof December15,2002December23,2002Form8-K,Exhibit4.1, FileNo.1-3004 4.81 Ameren AmerenIllinoisSupplementalIndenture,datedasof June1,2006,toAmerenIllinoisMortgage forSeriesAAJune19,2006Form8-K,Exhibit4.13, FileNo.1-3004 4.82 Ameren AmerenIllinoisSupplementalIndenture,datedasof November15,2007,toAmeren IllinoisMortgageforSeriesBBNovember20,2007Form8-K,Exhibit4.4, FileNo.1-3004 160 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.83 AmerenAmerenIllinoisSupplementalIndenture,datedasofApril1, 2008,toAmerenIllinoisMortgagefor SeriesCCApril8,2008Form8-K,Exhibit4.9, FileNo.1-3004 4.84 Ameren AmerenIllinoisSupplementalIndenture,datedasof October1,2008,toAmeren IllinoisMortgageforSeriesDDOctober23,2008Form8-K,Exhibit4.4, FileNo.1-3004 4.85 Ameren AmerenIllinoisSupplementalIndenture,datedasof October1,2010,toAmeren IllinoisMortgageforSeriesCIPS-AA, CIPS-BBandCIPS-CCOctober7,2010Form8K,Exhibit4.9, FileNo.1-3672 4.86 Ameren AmerenIllinoisSupplementalIndenture,datedasof January15,2011,toAmeren IllinoisMortgageExhibit4.78,FileNo.333-182258 4.87 Ameren AmerenIllinoisSupplementalIndenture,datedasof August1,2012,toAmeren IllinoisMortgageforSeriesEEAugust20,2012Form8-K,Exhibit4.4, FileNo.1-3672 4.88 Ameren AmerenIllinoisSupplementalIndenture,datedasof December1,2013,toAmerenIllinois MortgageforSeriesFFDecember10,2013Form8-K,Exhibit4.5, FileNo.1-3672 4.89 Ameren AmerenIllinoisSupplementalIndenture,datedasof June1,2014,toAmerenIllinoisMortgage forSeriesGGJune30,2014Form8-K,Exhibit4.5, FileNo.1-3672 4.90 Ameren AmerenIllinoisSupplementalIndenture,datedasof December1,2014,toAmerenIllinois MortgageforSeriesHHDecember10,2014Form8-K,Exhibit4.5, FileNo.1-3672 4.91 Ameren AmerenIllinoisIndenture,datedasofJune1,2006,from IP(predecessorininteresttoAmeren Illinois)toTheBankofNewYorkMellon TrustCompany,N.A.,assuccessortrustee (AmerenIllinoisIndenture)June19,2006Form8-K,Exhibit4.4, FileNo.1-3004 4.92 Ameren AmerenIllinoisFirstSupplementalIndenture,datedasof October1,2010,totheAmeren IllinoisIndentureforSeriesCIPS-AA,CIPS-BBandCIPS-CCOctober7,2010Form8K,Exhibit4.5, FileNo.1-14756 4.93 Ameren AmerenIllinoisSecondSupplementalIndenturetothe AmerenIllinoisIndenturedatedasof July21,2011September30,2011Form10-Q,Exhibit 4.2,FileNo.1-3672 4.94 Ameren AmerenIllinoisThirdSupplementalIndenturetothe AmerenIllinoisIndenturedatedasof May15,2012Exhibit4.83,FileNo.333-182258 4.95 Ameren AmerenIllinoisAmerenIllinoisIndentureCompanyOrder, datedJune14,2006,establishingthe 6.25%SeniorSecuredNotesdue2016 (includingtheglobalnote)June19,2006Form8-K,Exhibit4.7, FileNo.1-3004 4.96 Ameren AmerenIllinoisAmerenIllinoisIndentureCompanyOrder, datedNovember15,2007,establishing 6.125%SeniorSecuredNotesdue2017 (includingtheglobalnote)November20,2007Form8-K,Exhibit4.2, FileNo.1-3004 4.97 Ameren AmerenIllinoisAmerenIllinoisIndentureCompanyOrder, datedApril8,2008,establishing6.25%
SeniorSecuredNotesdue2018(including theglobalnote)April8,2008Form8-K,Exhibit4.4, FileNo.1-3004 4.98 Ameren AmerenIllinoisAmerenIllinoisIndentureCompanyOrder datedOctober23,2008,establishing9.75%
SeniorSecuredNotesdue2018(including theglobalnote)October23,2008Form8-K,Exhibit4.2, FileNo.1-3004 161 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.99 AmerenAmerenIllinoisAmerenIllinoisIndentureCompanyOrder datedAugust20,2012,establishing2.70%
SeniorSecuredNotesdue2022(including theglobalnote)August20,2012Form8-K,Exhibits4.2and 4.3,FileNo.1-30044.100AmerenAmerenIllinoisAmerenIllinoisIndentureCompanyOrder datedDecember10,2013,establishing 4.80%SeniorSecuredNotesdue2043 (includingtheglobalnote)December10,2013Form8-K,Exhibit4.2, FileNo.1-36724.101AmerenAmerenIllinoisAmerenIllinoisIndentureCompanyOrder datedJune30,2014,establishing4.30%
SeniorSecuredNotesdue2044(including theglobalnote)June30,2014Form8-K,Exhibit4.2, FileNo.1-36724.102AmerenAmerenIllinoisAmerenIllinoisIndentureCompanyOrder datedDecember10,2014,establishing 3.25%SeniorSecuredNotesdue2025 (includingtheglobalnote)December10,2014Form8-K,Exhibit4.2, FileNo.1-3672MaterialContracts 10.1AmerenCompaniesThirdAmendedAmerenCorporationSystemUtilityMoneyPoolAgreement,as amendedSeptember30,2004October1,2004Form8-K,Exhibit10.2, FileNo.1-14756 10.2 Ameren AmerenMissouriAmendedandRestatedCreditAgreement, datedasofDecember11,2014,byand amongAmeren,AmerenMissouriand JPMorganChaseBank,N.A.,asagent,and thelenderspartythereto.December11,2014Form8-K,Exhibit10.1, FileNo.1-14756 10.3 Ameren AmerenIllinoisAmendedandRestatedCreditAgreement, datedasofDecember11,2014,byand amongAmeren,AmerenIllinoisand JPMorganChaseBank,N.A.,asagent,and thelenderspartythereto.December11,2014Form8-K,Exhibit10.2, FileNo.1-14756 10.4 Ameren*SummarySheetofAmerenCorporationNon-ManagementDirectorCompensation revisedonAugust9,2013andeffectiveas ofAugust12,2013September30,2013Form10-Q, Exhibit10.1,FileNo.1-14756 10.5 Ameren*Ameren'sDeferredCompensationPlanfor MembersoftheBoardofDirectors amendedandrestatedeffectiveJanuary1, 2009,datedJune13,2008June30,2008Form10-Q,Exhibit10.3, FileNo.1-14756 10.6AmerenCompanies*AmendmentdatedOctober12,2009,toAmeren'sDeferredCompensationPlanfor MembersoftheBoardofDirectors, effectiveJanuary1,20102009Form10-K,Exhibit10.15, FileNo.1-14756 10.7AmerenCompanies*AmendmentdatedOctober14,2010,toAmeren'sDeferredCompensationPlanfor MembersoftheBoardofDirectors2010Form10-K,Exhibit10.15, FileNo.1-14756 10.8AmerenCompanies*Ameren'sDeferredCompensationPlanasamendedandrestatedeffectiveJanuary1, 2010October14,2009Form8-K,Exhibit10.1, FileNo.1-14756 10.9AmerenCompanies*AmendmentdatedOctober14,2010toAmeren'sDeferredCompensationPlan2010Form10-K,Exhibit10.17, FileNo.1-1475610.10AmerenCompanies*2012AmerenExecutiveIncentivePlanDecember14,2011Form8-K,Exhibit10.1,FileNo.1-1475610.11AmerenCompanies*2013AmerenExecutiveIncentivePlanDecember18,2012Form8-K,Exhibit10.1,FileNo.1-1475610.12AmerenCompanies*2014AmerenExecutiveIncentivePlanMarch31,2014Form10-Q,Exhibit10.1,FileNo.1-14756 162 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:10.13AmerenCompanies*2015AmerenExecutiveIncentivePlan10.14AmerenCompanies*2012BaseSalaryTableforNamedExecutiveOfficers2011Form10-K,Exhibit10.23,FileNo.1-1475610.15AmerenCompanies*2013BaseSalaryTableforNamedExecutiveOfficers2012Form10-K,Exhibit10.17, FileNo.1-1475610.16AmerenCompanies*2014BaseSalaryTableforNamedExecutiveOfficers2013Form10-K,Exhibit10.15, FileNo.1-1475610.17AmerenCompanies*2015BaseSalaryTableforNamedExecutiveOfficers10.18AmerenCompanies*SecondAmendedandRestatedAmerenCorporationChangeofControlSeverance
Plan2008Form10-K,Exhibit10.37, FileNo.1-1475610.19AmerenCompanies*FirstAmendmentdatedOctober12,2009,totheSecondAmendedandRestated AmerenChangeofControlSeverancePlanOctober14,2009Form8-K,Exhibit10.2, FileNo.1-1475610.20AmerenCompanies*RevisedScheduleItoSecondAmendedandRestatedAmerenChangeofControl SeverancePlan,asamendedSeptember30,2014Form10-Q,Exhibit10.1, FileNo.1-1475610.21AmerenCompanies*FormulaforDetermining2012TargetPerformanceShareUnitAwardstobe IssuedtoNamedExecutiveOfficersDecember14,2011Form8-K,Exhibit99.1, FileNo.1-1475610.22AmerenCompanies*FormulaforDetermining2013TargetPerformanceShareUnitAwardstobe IssuedtoNamedExecutiveOfficersDecember18,2012Form8-K,Exhibit99.1, FileNo.1-1475610.23AmerenCompanies*FormulaforDetermining2014TargetPerformanceShareUnitAwardstobe IssuedtoNamedExecutiveOfficersMarch31,2014Form10-Q,Exhibit10.2, FileNo.1-1475610.24AmerenCompanies*FormulaforDetermining2015TargetPerformanceShareUnitAwardstobe IssuedtoNamedExecutiveOfficers10.25AmerenCompanies*AmerenCorporation2006OmnibusIncentiveCompensationPlanFebruary16,2006Form8-K,Exhibit10.3, FileNo.1-1475610.26AmerenCompanies*FormofPerformanceShareUnitAwardAgreementforAwardsIssuedin2012 pursuantto2006OmnibusIncentive CompensationPlanDecember14,2011Form8-K,Exhibit10.2, FileNo.1-1475610.27AmerenCompanies*FormofPerformanceShareUnitAwardAgreementforAwardsIssuedin2013 pursuantto2006OmnibusIncentive CompensationPlanDecember18,2012Form8-K,Exhibit10.2, FileNo.1-1475610.28AmerenCompanies*FormofPerformanceShareUnitAwardAgreementforAwardsIssuedin2014 pursuantto2006OmnibusIncentive CompensationPlanMarch31,2014Form10-Q,Exhibit10.3, FileNo.1-1475610.29AmerenCompanies*AmerenCorporation2014OmnibusIncentiveCompensationPlanExhibit99,FileNo.333-19651510.30AmerenCompanies*FormofPerformanceShareUnitAwardAgreementforAwardsIssuedin2014 pursuantto2014OmnibusIncentive CompensationPlan10.31AmerenCompanies*FormofPerformanceShareUnitAwardAgreementforAwardsIssuedin2015 pursuantto2014OmnibusIncentive CompensationPlan 163 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:10.32AmerenCompanies*AmerenSupplementalRetirementPlanamendedandrestatedeffectiveJanuary1,2008,datedJune13,2008June30,2008Form10-Q,Exhibit10.1, FileNo.1-1475610.33AmerenCompanies*FirstAmendmenttoamendedandrestatedAmerenSupplementalRetirementPlan, datedOctober24,20082008Form10-K,Exhibit10.44, FileNo.1-1475610.34AmerenAmerenIllinois*CILCOExecutiveDeferralPlanasamended effectiveAugust15,19991999Form10-K,Exhibit10, FileNo.1-273210.35AmerenAmerenIllinois*CILCOExecutiveDeferralPlanIIas amendedeffectiveApril1,19991999Form10-K,Exhibit10(a),
FileNo.1-273210.36AmerenAmerenIllinois*CILCORestructuredExecutiveDeferral Plan(approvedAugust15,1999)1999Form10-K,Exhibit10(e),
FileNo.1-273210.37AmerenNovationandAmendmentofPutOptionAgreement,datedMarch14,2013,byand amongMedinaValley,AERG,Gencoand
AmerenMarch19,2013Form8-K,Exhibit10.3, FileNo.1-1475610.38Ameren*EmploymentandChangeofControlAgreement,datedMarch13,2013,between StevenR.Sullivan,AERandAmerenMarch19,2013Form8-K,Exhibit10.4, FileNo.1-14756Statementre:ComputationofRatios 12.1 AmerenAmeren'sStatementofComputationof RatioofEarningstoFixedCharges 12.2AmerenMissouriAmerenMissouri'sStatementofComputationofRatioofEarningstoFixed ChargesandCombinedFixedChargesand PreferredStockDividendRequirements 12.3AmerenIllinoisAmerenIllinois'StatementofComputation ofRatioofEarningstoFixedChargesand CombinedFixedChargesandPreferred StockDividendRequirementsSubsidiariesoftheRegistrant 21.1AmerenCompaniesSubsidiariesofAmerenConsentofExpertsandCounsel 23.1 AmerenConsentofIndependentRegisteredPublic AccountingFirmwithrespecttoAmeren 23.2AmerenMissouriConsentofIndependentRegisteredPublicAccountingFirmwithrespecttoAmeren
Missouri 23.3AmerenIllinoisConsentofIndependentRegisteredPublic AccountingFirmwithrespecttoAmeren
IllinoisPowerofAttorney 24.1 AmerenPowersofAttorneywithrespecttoAmeren 24.2AmerenMissouriPowersofAttorneywithrespecttoAmeren Missouri 24.3AmerenIllinoisPowersofAttorneywithrespecttoAmeren
IllinoisRule13a-14(a)/15d-14(a)Certifications 31.1 AmerenRule13a-14(a)/15d-14(a)Certificationof PrincipalExecutiveOfficerofAmeren 31.2 AmerenRule13a-14(a)/15d-14(a)Certificationof PrincipalFinancialOfficerofAmeren 164 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
31.3AmerenMissouriRule13a-14(a)/15d-14(a)CertificationofPrincipalExecutiveOfficerofAmeren Missouri 31.4AmerenMissouriRule13a-14(a)/15d-14(a)CertificationofPrincipalFinancialOfficerofAmeren
Missouri 31.5AmerenIllinoisRule13a-14(a)/15d-14(a)Certificationof PrincipalExecutiveOfficerofAmeren
Illinois 31.6AmerenIllinoisRule13a-14(a)/15d-14(a)Certificationof PrincipalFinancialOfficerofAmerenIllinoisSection1350Certifications 32.1 AmerenSection1350CertificationofPrincipal ExecutiveOfficerandPrincipalFinancial OfficerofAmeren 32.2AmerenMissouriSection1350CertificationofPrincipalExecutiveOfficerandPrincipalFinancial OfficerofAmerenMissouri 32.3AmerenIllinoisSection1350CertificationofPrincipal ExecutiveOfficerandPrincipalFinancial OfficerofAmerenIllinoisAdditionalExhibits 99.1AmerenCompaniesAmendedandRestatedTaxAllocationAgreement,datedasofNovember21,20132013Form10-K,Exhibit99.1, FileNo.1-14756InteractiveDataFile101.INS**AmerenCompaniesXBRLInstanceDocument101.SCH**AmerenCompaniesXBRLTaxonomyExtensionSchema Document101.CAL**AmerenCompaniesXBRLTaxonomyExtensionCalculationLinkbaseDocument101.LAB**AmerenCompaniesXBRLTaxonomyExtensionLabelLinkbase Document101.PRE**AmerenCompaniesXBRLTaxonomyExtensionPresentationLinkbaseDocument101.DEF**AmerenCompaniesXBRLTaxonomyExtensionDefinition DocumentThefilenumberreferencesfortheAmerenCompanies'filingswiththeSECare:Ameren,1-14756;AmerenMissouri,1-2967;andAmerenIllinois,1-3672.*Compensatoryplanorarrangement.EachregistrantherebyundertakestofurnishtotheSECuponrequestacopyofanylong-termdebtinstrumentnotlistedabovethatsuchregistranthasnotfiledasanexhibitpursuanttotheexemptionprovidedbyItem601(b)(4)(iii)(A)ofRegulationS-K.
165 Exhibit31.1RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALEXECUTIVEOFFICEROFAMERENCORPORATION(requiredbySection302oftheSarbanes-OxleyActof2002)I,WarnerL.Baxter,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2014,ofAmerenCorporation; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March2,2015/s/WarnerL.BaxterWarnerL.BaxterChairman,PresidentandChiefExecutiveOfficer (PrincipalExecutiveOfficer)
Exhibit31.2RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALFINANCIALOFFICEROFAMERENCORPORATION(requiredbySection302oftheSarbanes-OxleyActof2002)I,MartinJ.Lyons,Jr.,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2014,ofAmerenCorporation; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March2,2015/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit31.3RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALEXECUTIVEOFFICEROFUNIONELECTRICCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,MichaelL.Moehn,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2014,ofUnionElectricCompany; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March2,2015/s/MichaelL.MoehnMichaelL.MoehnChairmanandPresident (PrincipalExecutiveOfficer)
Exhibit31.4RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALFINANCIALOFFICEROFUNIONELECTRICCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,MartinJ.Lyons,Jr.,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2014,ofUnionElectricCompany; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March2,2015/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit31.5RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALEXECUTIVEOFFICEROFAMERENILLINOISCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,RichardJ.Mark,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2014,ofAmerenIllinoisCompany; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March2,2015/s/RichardJ.MarkRichardJ.MarkChairmanandPresident (PrincipalExecutiveOfficer)
Exhibit31.6RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALFINANCIALOFFICEROFAMERENILLINOISCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,MartinJ.Lyons,Jr.,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2014,ofAmerenIllinoisCompany; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March2,2015/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit32.1SECTION1350CERTIFICATIONOFAMERENCORPORATION(requiredbySection906oftheSarbanes-OxleyActof2002)InconnectionwiththereportonForm10-KforthefiscalyearendedDecember31,2014,ofAmerenCorporation(the"Registrant")asfiledbytheRegistrantwiththeSecuritiesandExchangeCommissiononthedatehereof(the"Form10-K"),eachundersignedofficeroftheRegistrantdoesherebycertify,pursuantto18U.S.C.§1350,asadoptedpursuantto§906of theSarbanes-OxleyActof2002,that:(1)TheForm10-KfullycomplieswiththerequirementsofSection13(a)or15(d)oftheSecuritiesExchangeActof1934(15U.S.C.78mor78o(d));and(2)TheinformationcontainedintheForm10-Kfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheRegistrant.Date:March2,2015/s/WarnerL.BaxterWarnerL.BaxterChairman,PresidentandChiefExecutiveOfficer (PrincipalExecutiveOfficer)/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit32.2SECTION1350CERTIFICATIONOFUNIONELECTRICCOMPANY(requiredbySection906oftheSarbanes-OxleyActof2002)InconnectionwiththereportonForm10-KforthefiscalyearendedDecember31,2014,ofUnionElectricCompany(the"Registrant")asfiledbytheRegistrantwiththeSecuritiesandExchangeCommissiononthedatehereof(the"Form10-K"),eachundersignedofficeroftheRegistrantdoesherebycertify,pursuantto18U.S.C.§1350,asadoptedpursuantto§906of theSarbanes-OxleyActof2002,that:(1)TheForm10-KfullycomplieswiththerequirementsofSection13(a)or15(d)oftheSecuritiesExchangeActof1934(15U.S.C.78mor78o(d));and(2)TheinformationcontainedintheForm10-Kfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheRegistrant.Date:March2,2015/s/MichaelL.MoehnMichaelL.MoehnChairmanandPresident (PrincipalExecutiveOfficer)/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit32.3SECTION1350CERTIFICATIONOFAMERENILLINOISCOMPANY(requiredbySection906oftheSarbanes-OxleyActof2002)InconnectionwiththereportonForm10-KforthefiscalyearendedDecember31,2014,ofAmerenIllinoisCompany(the"Registrant")asfiledbytheRegistrantwiththeSecuritiesandExchangeCommissiononthedatehereof(the"Form10-K"),eachundersignedofficeroftheRegistrantdoesherebycertify,pursuantto18U.S.C.§1350,asadopted pursuantto§906oftheSarbanes-OxleyActof2002,that:(1)TheForm10-KfullycomplieswiththerequirementsofSection13(a)or15(d)oftheSecuritiesExchangeActof1934(15U.S.C.78mor78o(d));and(2)TheinformationcontainedintheForm10-Kfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheRegistrant.Date:March2,2015/s/RichardJ.MarkRichardJ.MarkChairmanandPresident (PrincipalExecutiveOfficer)/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
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COMMON STOCK AND DIVIDEND INFORMATIONAmeren's 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 Dec. 31, 1997. Ameren common shareholders of record totaled 54,755 on Jan. 31, 2015. The following table provides the price ranges, closing prices and dividends declared per Ameren common share for each quarter of 2014 and 2013.
ANNUAL MEETINGThe annual meeting of Ameren Corporation shareholders will convene at 10:30 a.m. (Central Time), Thursday, April 23, 2015, at the Saint Louis Art Museum, One Fine Arts Drive, Forest Park, 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, Ameren's dividend reinvestment and stock purchase plan.
Participants may:
ł Make cash investments by check or automatic direct debit from their bank accounts to purchase Ameren common stock, up to a maximum of
$360,000 annually;
ł Reinvest their dividends in Ameren common stock (the minimum dividend reinvestment requirement is 10% per share); and
ł Place Ameren common stock certificates in safekeeping and receive regular account statements.For more information about DRPlus, you may obtain a prospectus from Ameren's Investor Services representatives.
DIRECT DEPOSIT OF DIVIDENDSAll registered Ameren common and Ameren Illinois Company and Union Electric Company preferred shareholders may 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 (Ameren.com), the charters of the Board of Directors' Audit and Risk Committee, Finance Committee, Human Resources Committee, Nominating and Corporate Governance Committee and Nuclear Oversight and Environmental Committee. Also available on Ameren's 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 "Principles of Business Conduct") and 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 company's 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 ACCESSAmeren's website (Ameren.com) allows registered shareholders to access their account information online. Shareholders may securely change their reinvestment options, view account summaries, receive DRPlus statements and more through the website. This is a free service.
INVESTOR SERVICESAmeren's Investor Services representatives are available to help you each business day from 8 a.m. to 4 p.m. (Central Time). Please write or call:Ameren Services Company, Investor Services P.O. Box 66887 St. Louis, MO 63166-6887 314.554.3502 or 800.255.2237 invest@ameren.comTRANSFER AGENT, REGISTRAR AND PAYING AGENTThe Transfer Agent, Registrar and Paying Agent for Ameren common stock and Ameren Illinois Company and Union Electric Company preferred stock is Ameren Services Company.
INVESTOR INFORMATION Ameren Corporation One Ameren Plaza l 1901 Chouteau Avenue l St. Louis, MO 63103 l 314.621.3222 AEE 2014Quarter Ended March 31 June 30 Sept.30 Dec.31 High$42.24$41.92$40.96$48.14 Low$35.22$37.67$36.65$38.25 Close$41.20$40.88$38.33$46.13Dividends Declared40 ¢40 ¢40 ¢41 ¢AEE 2013Quarter Ended March 31 June 30 Sept.30 Dec.31 High$35.12$36.74$36.70$37.31 Low$30.64 $32.34 $32.61
$34.18 Close$35.02$34.44$34.84$36.16Dividends
Declared40 ¢40 ¢40 ¢40 ¢ P.O. Box 66149 l St. Louis, MO 63166-6149 AMEREN.COMAmeren's strategy is to invest in rate-regulated energy infrastructure which, when coupled with relentlessly improving operating performance and advocating for responsible energy policies, will deliver superior growth in shareholder and customer value.
AMEREN l 2014 Annual Report and Form 10-K to ULNRC-06272 2015 ANNUAL REPORT (filed 3/02/2015 includes 2014 FORM 10-K)
Powering Grow th2014 ANNUAL REPORT AMEREN l 2014 Annual Report and Form 10-K FINANCIAL HIGHLIGHTS Ameren Consolidated 2014 2013 2012 In millions, except per share amounts and as noted Years ended Dec. 31 Results of Operations Operating revenues
$6,053$5,838$5,781 Operating expenses
$4,799$4,654$4,593 Operating income
$1,254$1,184$1,188 Net income attributable to Ameren Corporation from continuing operations
$587$512$516 Common Stock Data Continuing operations earnings per diluted share
$2.40$2.10$2.13 Dividends per common share
$1.61$1.60$1.60 Annualized dividend yield (year-end) 3.6%4.4%5.2%Market price per common share (year-end closing)
$46.13$36.16$30.72 Shares outstanding (weighted average) 242.6 242.6 242.6 Total market value of common shares (year-end)
$11,191$8,772$7,453 Book value per common share
$27.67$26.97$27.27 Balance Sheet Data Property and plant, net
$17,424$16,205$15,348 Total assets
$22,676$21,042$22,230 Long-term debt obligations, excluding current maturities
$6,120$5,504$5,802 Capitalization Ratios Common equity 48.7%50.1%52.0%Preferred stock 1.0%1.1%1.1%Debt, net of cash 50.3%48.8%46.9%Utility Operating Data Electric sales (kilowatt-hours) 80,022 80,057 81,680 Natural gas sales (decatherms in thousands) 202,810 195,266 172,647 Generation output (kilowatt-hours) 43,474 43,213 44,658 Electric customers 2.4 2.4 2.4 Natural gas customers 0.9 0.9 0.9 Ameren is committed to powering the quality of life for our customers and powering growth for our shareholders and the communities we serve. 01Powering Growth 02About Ameren 04Letter from the CEO 09Investing for Customers and Shareholders 10Cleaner and More Dependable Energy 13Relentless Improvement 14Ameren's Executive Leadership Team 16Officers and Board of Directors CONTENTSAMEREN CORPORATION2014 ANNUAL REPORT 1
About Ameren Ameren Corporation is headquartered in St.
Louis. We pride ourselves on operating safely and maintaining ~nancial strength while providing reliable, reasonably priced energy in an environmentally responsible fashion.
COLLINSVILLE ST. LOUISCorporate HeadquartersSubsidiary
Headquarters Electric Service Territory Electric &
Natural Gas
Territory AMEREN MISSOURI This integrated utility owns a mix of energy centers with 10,200 megawatts of electric generation capacity. It is the largest electric utility and second
largest gas distributor in Missouri.
AMEREN ILLINOIS This delivery-only utility is the second largest distributor of electricity and third largest distributor of natural gas in Illinois.AMEREN TRANSMISSION COMPANY OF ILLINOIS This subsidiary is dedicated to electric transmission infrastructure investment and expanding Ameren's already
robust system of high-voltage lines.
Transmission Line ProjectsSpoon RiverIllinois RiversMark Twain 2 2.4MILLION ELECTRIC CUSTOMERS FORTUNE 500 COMPANY100+YEARS OF UNINTERRUPTED CASH DIVIDEND PAYMENTS 8,500 CO-WORKERS AMEREN MISSOURI ł Demonstrating a commitment to cleaner energy, in November the O'Fallon Renewable Energy Center came online.
Ameren Missouri also invested millions of dollars over the last few years replacing obsolete substations that power critical institutions, including medical centers, major employers, universities and police
and fire stations.ł Ameren Missouri filed an electric rate adjustment request in July for cleaner energy and dependability upgrades to critical infrastructure. The filing also addressed a significant increase in fuel costs and investments in Missouri's
renewable energy.ł Missouri's largest energy center, Labadie, installed additional environmental controls to enhance air quality while ensuring this center can continue to supply affordable around-the-clock power. In August, a major industry consultant recognized Labadie as the top-performing large unit
coal-fired energy center in the nation.
AMEREN ILLINOIS
ł As part of the Energy Infrastructure Modernization Act, Ameren Illinois placed
213 reliability projects into service in 2014 with a total investment of $83.5 million.
As part of its commitment to smarter grid upgrades, Ameren Illinois exceeded its
~rst-year goal for the Advanced Metering Infrastructure Project with the installation of almost 47,000 advanced electric and
26,000 upgraded gas meters.ł Ameren Illinois exceeded performance metrics related to reductions in frequency and duration of customer interruptions; number of customers exceeding reliability targets; number of estimated electric meters; consumption on inactive meters;
and uncollectible expense.ł Ameren Illinois received a constructive December electric delivery rate decision demonstrating that Illinois' formulaic rate
framework is working as intended.AMEREN TRANSMISSION COMPANY OF ILLINOISł The Illinois Rivers Transmission Project, spanning the Mississippi River and central Illinois, saw construction begin on tower foundations and on the majority of planned substations. It is expected to be completed in 2019. This is Ameren's largest single
construction project since the early 1980s.ł The Spoon River Transmission Project in northwest Illinois is awaiting approval of its Certificate of Public Convenience and Necessity from the Illinois Commerce
Commission, which is expected in 2015.ł Ameren Transmission Company of Illinois gathered public input on plans for another regional project, Mark Twain, in northeast Missouri. Both Spoon River and Mark Twain are expected to be
completed in 2018.
900,000 64,000SQUARE-MILE SERVICE TERRITORYNATURAL GAS CUSTOMERS 2014 HIGHLIGHTSAMEREN CORPORATION2014 ANNUAL REPORT 3
My FellowShareholdersMy FellowShareholdersMy Fellow LETTER FROM THE CEO WARNER L. BAXTERChairman, President & CEO 4
our vision & missionOver the last year, I have visited with a large number of Ameren co-workers in Missouri and Illinois - and many stakeholders in the communities we serve - to discuss Ameren's strategy to deliver value to our customers and shareholders. Key aspects of our discussions focus not only on "what" we do (our strategy), but also on "why" we do what we do. Simply put, Ameren's vision of Leading the Way to a Secure Energy Future and our mission To Power the Quality of Life describe "why" we do the work we do each and every day. In addition, our vision and mission focus our strategy and inspire excellence and innovation among our co-workers for the benefit of our stakeholders.It is a privilege and honor to write to you for my ~rst time as chairman, president and chief executive of~cer of Ameren Corporation, following in the footsteps of my predecessor and a terri~c leader, Tom Voss.I am pleased to report that Ameren continues to execute its well-defined strategy to create long-term value for you, our shareholders, as well as for our 2.4 million electric and 900,000 natural gas customers in more than 1,700 communities in Missouri and Illinois. We completed several critical projects that will produce cleaner and more dependable energy for millions of customers who depend on us. In addition, our reliability and electric rates remained among the best in the country. Importantly, these actions are powering earnings growth. In 2014, we achieved strong earnings growth that was among the best in the industry, and we also increased our dividend. In addition, we remain on target to deliver solid earnings growth in the future. These outcomes were the result of a focused and cohesive team effort. However, I want to start by discussing some key principles that guide us at Ameren.32.7%TOTAL SHAREHOLDER RETURN IN 201414.3% EARNINGS PER SHARE GROWTH IN 20142.5% DIVIDEND INCREASEAMEREN CORPORATION2014 ANNUAL REPORT 5
In 2014, Ameren successfully executed key aspects of our strategy under each core pillar. Under our first core pillar, growing amounts of discretionary capital were invested in Federal Energy Regulatory Commission-regulated electric transmission and Illinois electric and natural gas delivery services. These businesses operate under modern, constructive regulatory frameworks that allow for fair, predictable and timely recovery of operating costs and infrastructure investments made to better serve our customers. Other key aspects of this strategy include managing costs wisely, successfully managing and completing key energy infrastructure projects, and achieving constructive rate case outcomes. Examples of how we executed this strategy are on page 3.Under our second core pillar, several key events took place in 2014. In December, the Illinois legislature overwhelmingly passed legislation that extended the constructive formulaic electric rates framework by two years through 2019.
That legislation has been submitted to Governor Rauner. In addition, Ameren was very active in advocating for responsible energy policies at the federal level, notably in the environmental area.
In particular - working with key industry leaders, policymakers and stakeholders throughout Missouri, Illinois and the country - we raised concerns over the impact on customers' rates and reliability associated with the Environmental Protection Agency's (EPA) Clean Power Plan. We offered constructive solutions that not only would achieve the final greenhouse gas emissions target proposed by the EPA, but also would significantly mitigate the impact on customers' rates and reduce reliability risks associated with this proposal.
The EPA is expected to issue its final rule in 2015.Several steps were taken under our third core pillar in 2014. In Missouri, we announced our Integrated Resource Plan to transition to a cleaner and more fuel-diverse generation portfolio over the next 20 years. Our plan includes meaningful incremental investments in renewable and natural gas-fired generation, retirement of about a third of our coal-fired generation capacity at the end of its useful life, and offering robust energy efficiency programs that benefit customers and the environment under Missouri's constructive regulatory framework for such programs. I am pleased to report that our initial three-year energy efficiency program in Missouri is on track to exceed its goals. In 2014, we also invested more than $600 million in transmission to improve the reliability and ef~ciency of our system, and we are aggressively competing for future transmission investment opportunities. These actions will position us to "power growth" in our businesses with continued investments in energy infrastructure for the bene~t of customers and shareholders.
OUR STRATEGYAmeren's strategy is to invest in rate-regulated energy infrastructure which, when coupled with relentlessly improving operating performance and advocating for responsible energy policies, will deliver superior growth in shareholder and customer value. I strongly believe that the sustained execution of this strategy will enable Ameren to be a clear leader in the utility industry in terms of customer satisfaction, operating and ~nancial performance, and thought leadership.
THE EXECUTION OF OUR STRATEGY IS SUPPORTED BY THREE CORE PILLARS:Investing in and operating our businesses in a manner consistent with existing
regulatory frameworksSeeking to enhance regulatory frameworks and advocating for responsible energy policies at
the federal and state levelsCreating and capitalizing on opportunities for investment for the benefit of customers
and shareholders 6
STRONG PERFORMANCEAs I noted at the outset of my letter, execution of our well-de~ned strategy has delivered strong operating results. We improved our overall customer satisfaction in 2014 by delivering solid reliability at a reasonable price, enhancing our customer communications and delivering on our promises of job creation associated with investments in Illinois. From a ~nancial perspective, we achieved a total shareholder return of 32.7% in 2014 and, in February 2015, reaf~rmed our earnings growth from continuing operations guidance of 7% to 10% compounded annually from 2013 to 2018. We also achieved earnings per share growth from continuing operations of 14.3% in 2014 over 2013. And in October, we announced an increase in our quarterly cash dividend to 41 cents per share for a new annualized rate of $1.64 per share, a 2.5% increase. This action reflects con~dence in the long-term outlook for our business. The bottom line is that I am pleased with our performance in 2014, but as I often tell my co-workers, we cannot be satis~ed. Great companies continue to move forward in executing their strategies and delivering sustainable, superior results for the bene~t of all stakeholders. OUR CO-WORKERS AND OUR VALUES Execution all comes down to our people. I am fortunate to lead a group of dedicated, bright and innovative co-workers who embrace our vision, our mission and our strategy. Just as important, they fully embrace a workplace culture that focuses on safety and our long-held core values. These core values, listed on the left, will continue to guide us in the years ahead.In closing, I strongly believe that our strategic plan has set Ameren on a path to power growth now and in the future. Our team is inspired to be a leader in customer satisfaction, operating and financial performance, and thought leadership. Thank you for your trust in me and my co-workers.
Sincerely, WARNER L. BAXTERChairman, President &
Chief Executive Officer Ameren Corporation March 1, 2015PLEASE JOIN US AT THE ANNUAL MEETING SAINT LOUIS ART MUSEUM One Fine Arts Drive, Forest Park St. Louis, MissouriINTEGRITY Do the right thingRESPECT Value othersTEAMWORK Work together ACCOUNTABILITY Own your actions STEWARDSHIP Leave it betterCOMMITMENT TO EXCELLENCE The will to win our values april 23 10:30 A.M.AMEREN CORPORATION2014 ANNUAL REPORT 7
Dehydration towers, like this one at Lincoln Storage Field in Lincoln, Ill.,
ensure that pipeline-quality natural
gas is safely and reliably delivered
to customers. Ameren Illinois is
investing about $400 million over
10 years to strengthen the integrity
of its gas delivery system - part
of a larger $3.5 billion plan to
build a next-generation energy
delivery system and create jobs
in central and southern Illinois.
GROWING RATE BASEAmeren's capital investment plans are expected to translate into overall rate base growth of about 6%, compounded annually from 2014 through 2019. We expect this to lead to solid growth in earnings as well.
6%8 POWERING GROWTHInvesting for Customers and
ShareholdersThe strategic investments Ameren makes in regulated infrastructure - reliability upgrades, environmental enhancements and service improvements for homes and businesses - create value for customers and shareholders alike. FERC-REGULATED ELECTRIC TRANSMISSIONILLINOIS ELECTRIC &
NATURAL GAS DELIVERYMISSOURI GENERATION
& DELIVERYPLANNED CAPITAL INVESTMENT ALLOCATION2015-2019 2.9 BILLION$3.7 BILLION$2.3 BILLION$AMEREN CORPORATION2014 ANNUAL REPORT 9
POWERING GROWTHCleaner and More Dependable EnergyAmeren has a strong history of renewable energy investments that extends back more than a century. Now we are finding innovative ways to add additional cleaner resources to the mix. In Missouri and Illinois, we are continually updating electric and natural gas infrastructure to provide service that our customers can count on.
1.1 0.9 1.3 1.5 2002 2004 2006 2008 2010 2012 2014 Outage frequency BETTER IMPROVING RELIABILITYwith fewer outagesAmeren's electric distribution reliability performance has improved, as measured by the System Average Interruption Frequency Index. This important benchmark shows how we have reduced the total number of interruptions per customer served per year.
10 Solar power became part of Ameren Missouri's generation mix when the O'Fallon Renewable Energy Center went online in November 2014. This facility - the largest investor-owned, utility-scale solar center in the state - features more than 19,000
solar panels covering over 19 acres.
AMEREN CORPORATION2014 ANNUAL REPORT 11 METERING UPGRADES Ameren Illinois' electric and gas delivery service modernization efforts continued in earnest during 2014. In December, the utility hit two important milestones: installing the 40,000th advanced electric meter and upgrading the 25,000th natural gas meter. These next-generation metering updates will help detect and isolate outages at homes and businesses, so service can be restored more promptly.
MEETING CUSTOMER NEEDS To meet demand growth and improve electric transmission system reliability, Ameren Illinois in 2014 expanded the footprint of its Turkey Hill substation in Belleville. The new technology and equipment are designed to meet the evolving demands of our customers. In addition, Ameren Illinois will be upgrading a 25-mile transmission line that will allow the company to move 2.5 times as much power between Turkey Hill and a Cahokia, Ill., substation.
CARBON-FREE, RELIABLE POWER Dec. 19, 2014, brought the 30th anniversary of Callaway Energy Center. This facility in Fulton, Mo., provides enough carbon-free power to supply 20% of the electricity needed by our Missouri customers. Callaway also successfully completed refueling and a number of maintenance activities in 2014, including installation of a new reactor vessel head (above). The original had been in service since 1984. Approximately 800 men and women ensure Callaway's continued safe and reliable operation, and they make it one of the top-rated nuclear facilities in the nation.
12 POWERING GROWTHRelentless ImprovementAmeren co-workers are committed to enhancing our communities and to relentlessly improving all aspects of operations - especially when it comes to safety. Combined with disciplined ~nancial management, this focus on operational excellence helps us provide reasonably priced energy to power our region's economy.
In June 2014, members of Ameren's Military-Veteran
employee resource group joined
the Department of Defense
to honor local war heroes.
Ameren and our co-workers
are committed to improving
the cities and towns we
serve. Through volunteerism
and charitable giving, we are
building stronger communities.
REASONABLY PRICED ELECTRICITY
¢/KWH 0 AMEREN IL AMEREN MO CHICAGO MINNEAPOLIS U.S. AVERAGE DETROIT BOSTON NEW YORK 8.19 9.97 11.14 12.34 12.56 14.95 17.59 28.715 10 15 25 20 The electricity delivered by Ameren Missouri and Ameren Illinois remains competitively priced.
This is important for low- and ~xed-income customers and for businesses seeking to open or expand.AVERAGE RESIDENTIAL ELECTRIC PRICES (Source: 2014 Summer Edison Electric Institute "Typical Bills and Average Rates Report" for year ending June 2014)
IMPROVING LONG-TERM SAFETY PERFORMANCE 0 50 100 150 2002 2004 2006 2008 2010 2012 2014 Lost Workday Away CasesSafety is the foundation for everything Ameren does. The company continues to focus on improving its safety performance.
1.1 0.9 1.3 1.5 2002 2004 2006 2008 2010 2012 2014 Outage frequency BETTER 13AMEREN CORPORATION2014 ANNUAL REPORT Leading the Way AMEREN'S EXECUTIVE LEADERSHIP TEAM WARNER L. BAXTER Chairman, President and Chief Executive Of~cer, Ameren CorporationMAUREEN A. BORKOWSKI President, Ameren Transmission
Company and Ameren
Transmission Company of Illinois DANIEL F. COLE President,
Ameren ServicesMICHAEL L. MOEHN President, Ameren Missouri RICHARD J. MARK President,
Ameren Illinois 14 Leading the WayMARTIN J. LYONS, JR.
Executive Vice President and Chief Financial Of~cer, Ameren CorporationFADI M. DIYA Senior Vice President and Chief
Nuclear Of~cer, Ameren Missouri MARY P. HEGER Vice President and Chief Information
Of~cer, Ameren Services MARK C. LINDGREN Vice President and Chief Human Resources Of~cer, Ameren Services MARK C. BIRK Senior Vice President, Corporate Planning and Oversight, Ameren ServicesGREGORY L. NELSON Senior Vice President, General Counsel and Secretary, Ameren CorporationAMEREN CORPORATION2014 ANNUAL REPORT 15 AMEREN CORPORATION AND SUBSIDIARIES OFFICERS Ajay K. Arora*
Vice President, Environmental Services and Generation Resource Planning, Ameren Services Lynn M. Barnes*
Vice President, Business Planning and Controller, Ameren Missouri S. Mark Brawley Vice President and Controller, Ameren Corporation Kendall D. Coyne*
Vice President, Tax, Ameren Services Kevin A. DeGraw*
Vice President, Corporate Operations Oversight and Continuous Improvement, Ameren Services Scott A. Glaeser*
Vice President, Gas Operations and Technical Development, Ameren Illinois Sharon Harvey Davis*
Vice President and Chief Diversity Of~cer, Ameren Services Timothy E. Herrmann*
Vice President, Engineering, Callaway Energy Center, Ameren Missouri Christopher A. Iselin*
Senior Vice President, Power Operations and Energy Management, Ameren Missouri Stephen M. Kidwell*
Vice President, Corporate Planning, Ameren Services Geralynn M. Lord*
Assistant Vice President, Corporate Communications, Ameren Services Ryan J. Martin Assistant Vice President and Treasurer, Ameren Corporation Michael G. Mueller*
Vice President, Energy Management and Trading, Ameren Missouri Craig D. Nelson*
Senior Vice President, Regulatory Affairs and
Financial Services, Ameren Illinois David W. Neterer*
Vice President, Nuclear Development, Callaway Energy Center, Ameren Missouri Stan E. Ogden*
Vice President, Customer Service and Metering Operations, Ameren Illinois Tara K. Oglesby*
Assistant Vice President, Customer Experience, Ameren Missouri Ronald D. Pate*
Senior Vice President, Operations and Technical Services, Ameren Illinois Joseph M. Power*
Vice President, Federal Legislative and Regulatory Affairs, Ameren Services Shawn E. Schukar*
Senior Vice President, Transmission Business Development, Ameren Transmission Company and Ameren Transmission Company of Illinois Theresa A. Shaw Vice President, Internal Audit, Ameren Corporation James A. Sobule*
Vice President and Deputy General Counsel, Ameren Services Bruce A. Steinke Senior Vice President, Finance and Chief Accounting Of~cer, Ameren Corporation David N. Wakeman*
Senior Vice President, Operations and Technical Services, Ameren Missouri Dennis W. Weisenborn*
Vice President, Safety and Supply Services, Ameren Services Raymond M. Wiesehan*
Vice President, Crisis Management, Ameren Services D. Scott Wiseman*
Vice President, External Affairs, Ameren Illinois Warren T. Wood*
Vice President, External Affairs and Communications, Ameren Missouri The of~cers also include the Ameren Executive Leadership Team on pages 14-15. The of~cer listing is as of March 1, 2015.
- Of~cer of an Ameren Corporation subsidiary only.
BOARD OF DIRECTORS Warner L. BaxterChairman, President and Chief Executive Officer, Ameren CorporationCatherine S. Brune Retired President, Allstate Protection Eastern Territory of Allstate Insurance Company Audit and Risk Committee; Nuclear Oversight and Environmental CommitteeJ. Edward Coleman Former Chairman and Chief Executive Officer, Unisys Corporation Nuclear Oversight and Environmental CommitteeEllen M. Fitzsimmons Executive Vice President of Law and Public Affairs, General Counsel and Corporate Secretary, CSX Corporation Audit and Risk Committee; Nominating and Corporate Governance CommitteeWalter J. Galvin Consultant and Retired Vice Chairman, Emerson Electric Co.
Audit and Risk Committee; Finance Committee; Lead DirectorRichard J. Harshman Chairman, President and Chief Executive Officer, Allegheny Technologies Incorporated Human Resources Committee; Nuclear Oversight and Environmental CommitteeDr. Gayle P. W. Jackson President and Chief Executive Officer, Energy Global, Inc.
Nominating and Corporate Governance Committee; Nuclear Oversight and Environmental CommitteeJames C. Johnson Retired General Counsel, Loop Capital Markets LLC Human Resources Committee; Nuclear Oversight and Environmental CommitteeSteven H. Lipstein President and Chief Executive Officer, BJC HealthCare Finance Committee; Human Resources CommitteePatrick T. Stokes Former Chairman, Anheuser-Busch Companies, Inc.
Human Resources Committee; Nominating and Corporate Governance CommitteeStephen R. Wilson Retired Chairman, President and Chief Executive Officer, CF Industries Holdings, Inc.
Audit and Risk Committee; Finance CommitteeJack D. Woodard Retired Executive Vice President and Chief Nuclear Officer, Southern Nuclear Operating Company, Inc.
Nominating and Corporate Governance Committee; Nuclear Oversight and Environmental Committee 16 UNITEDSTATESSECURITIESANDEXCHANGECOMMISSIONWashington,D.C.20549FORM10-K(X)AnnualreportpursuanttoSection13or15(d)oftheSecuritiesExchangeActof1934forthefiscalyearendedDecember31,2014.
OR()TransitionreportpursuanttoSection13or15(d)oftheSecuritiesExchangeActof1934forthe transitionperiodfromto.
Commission FileNumberExactnameofregistrantasspecifiedinitscharter; StateofIncorporation; AddressandTelephoneNumberIRSEmployer IdentificationNo.
1-14756AmerenCorporation 43-1723446(MissouriCorporation) 1901ChouteauAvenue St.Louis,Missouri63103 (314)621-3222 1-2967UnionElectricCompany 43-0559760(MissouriCorporation) 1901ChouteauAvenue St.Louis,Missouri63103 (314)621-3222 1-3672AmerenIllinoisCompany 37-0211380(IllinoisCorporation) 6ExecutiveDrive Collinsville,Illinois62234 (618)343-8150SecuritiesRegisteredPursuanttoSection12(b)oftheAct:ThefollowingsecurityisregisteredpursuanttoSection12(b)oftheSecuritiesExchangeActof1934andislistedontheNewYorkStockExchange:
RegistrantTitleofeachclassAmerenCorporationCommonStock,$0.01parvaluepershareSecuritiesRegisteredPursuanttoSection12(g)oftheAct:
RegistrantTitleofeachclassUnionElectricCompanyPreferredStock,cumulative,noparvalue,statedvalue$100pershareAmerenIllinoisCompanyPreferredStock,cumulative,$100parvaluepershare DepositaryShares,eachrepresentingone-fourthofashare of6.625%PreferredStock,cumulative,$100parvalueper
share Indicatebycheckmarkifeachregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.AmerenCorporationYes(X)No()UnionElectricCompanyYes()No(X)AmerenIllinoisCompanyYes()No(X)IndicatebycheckmarkifeachregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.
AmerenCorporationYes()No(X)UnionElectricCompanyYes()No(X)AmerenIllinoisCompanyYes()No(X)Indicatebycheckmarkwhethertheregistrants:(1)havefiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)havebeensubjecttosuchfilingrequirementsforthepast90days.AmerenCorporationYes(X)No()UnionElectricCompanyYes(X)No()AmerenIllinoisCompanyYes(X)No()Indicatebycheckmarkwhethereachregistranthassubmittedelectronicallyandpostedonitscorporatewebsite,ifany,everyInteractiveDataFilerequiredtobesubmittedandpostedpursuanttoRule405ofRegulationS-T(§232.405ofthis chapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitandpostsuch
files).AmerenCorporationYes(X)No()UnionElectricCompanyYes(X)No()AmerenIllinoisCompanyYes(X)No()IndicatebycheckmarkifdisclosureofdelinquentfilerspursuanttoItem405ofRegulationS-K(§229.405ofthischapter)isnotcontainedherein,andwillnotbecontained,tothebestofeachregistrant'sknowledge,indefinitiveproxyor informationstatementsincorporatedbyreferenceinPartIIIofthisForm10-KoranyamendmenttothisForm10-K.AmerenCorporation (X)UnionElectricCompany (X)AmerenIllinoisCompany (X)Indicatebycheckmarkwhethereachregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfilerorasmallerreportingcompany.Seedefinitionsof"largeacceleratedfiler,""acceleratedfiler,"and"smallerreportingcompany"in Rule12b-2oftheExchangeAct.
Large Accelerated Filer Accelerated Filer Non-accelerated Filer Smaller Reporting CompanyAmerenCorporation(X)()()()UnionElectricCompany()()(X)()AmerenIllinoisCompany()()(X)()Indicatebycheckmarkwhethereachregistrantisashellcompany(asdefinedinRule12b-2oftheAct).AmerenCorporationYes()No(X)UnionElectricCompanyYes()No(X)AmerenIllinoisCompanyYes()No(X)
AsofJune30,2014,AmerenCorporationhad242,634,798sharesofits$0.01parvaluecommonstockoutstanding.Theaggregatemarketvalueofthesesharesofcommonstock(basedupontheclosingpriceofthecommonstockontheNewYorkStockExchangeonJune30,2014)heldbynonaffiliateswas$9,918,910,542.Thesharesofcommonstockoftheother registrantswereheldbyAmerenCorporationasofJune30,2014.Thenumberofsharesoutstandingofeachregistrant'sclassesofcommonstockasofJanuary30,2015,wasasfollows:AmerenCorporationCommonstock,$0.01parvaluepershare:242,634,798UnionElectricCompanyCommonstock,$5parvaluepershare,heldbyAmeren Corporation(parentcompanyoftheregistrant):
102,123,834AmerenIllinoisCompanyCommonstock,noparvalue,heldbyAmeren Corporation(parentcompanyoftheregistrant):
25,452,373DOCUMENTSINCORPORATEDBYREFERENCEPortionsofthedefinitiveproxystatementofAmerenCorporationandportionsofthedefinitiveinformationstatementsofUnionElectricCompanyandAmerenIllinoisCompanyforthe2015annualmeetingsofshareholdersareincorporatedby referenceintoPartIIIofthisForm10-K.ThiscombinedForm10-KisseparatelyfiledbyAmerenCorporation,UnionElectricCompany,andAmerenIllinoisCompany.Eachregistrantheretoisfilingonitsownbehalfalloftheinformationcontainedinthisannualreportthatrelatesto suchregistrant.Eachregistrantheretoisnotfilinganyinformationthatdoesnotrelatetosuchregistrant,andthereforemakes norepresentationastoanysuchinformation.
TABLEOFCONTENTS PageGLOSSARYOFTERMSANDABBREVIATIONS.......................................................1Forward-lookingStatements.....................................................................4PARTIItem1.Business.........................................................................5 General......................................................................5BusinessSegments.............................................................6RatesandRegulation...........................................................6TransmissionandSupplyofElectricPower..........................................10PowerGeneration..............................................................11NaturalGasSupplyforDistribution.................................................13IndustryIssues................................................................14OperatingStatistics.............................................................15AvailableInformation...........................................................16Item1A.RiskFactors......................................................................17Item1B.UnresolvedStaffComments..........................................................24Item2.Properties........................................................................25Item3.LegalProceedings..................................................................26Item4.MineSafetyDisclosures.............................................................27ExecutiveOfficersoftheRegistrants(Item401(b)ofRegulationS-K).....................................27PARTII Item5.MarketforRegistrants'CommonEquity,RelatedStockholderMatters,andIssuerPurchasesofEquity Securities
........................................................................
29Item6.SelectedFinancialData..............................................................31Item7.Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations...........31 Overview.....................................................................32ResultsofOperations...........................................................33LiquidityandCapitalResources...................................................45 Outlook......................................................................57RegulatoryMatters.............................................................60AccountingMatters.............................................................60EffectsofInflationandChangingPrices.............................................63Item7A.QuantitativeandQualitativeDisclosuresAboutMarketRisk..................................64Item8.FinancialStatementsandSupplementaryData............................................67SelectedQuarterlyInformation....................................................144Item9.ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure..........144Item9A.ControlsandProcedures.............................................................145Item9B.OtherInformation..................................................................145PARTIII Item10.Directors,ExecutiveOfficers,andCorporateGovernance....................................145Item11.ExecutiveCompensation.............................................................146Item12.SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholder Matters..........................................................................
146Item13.CertainRelationshipsandRelatedTransactionsandDirectorIndependence.....................147Item14.PrincipalAccountingFeesandServices.................................................147PARTIV Item15.ExhibitsandFinancialStatementSchedules..............................................148 SIGNATURES.................................................................................152EXHIBITINDEX...............................................................................155Thisreportcontains"forward-looking"statementswithinthemeaningofSection21EoftheSecuritiesExchangeActof1934,asamended.Forward-lookingstatementsshouldbereadwiththecautionarystatementsandimportantfactorsundertheheading"Forward-lookingStatements."Forward-lookingstatementsareallstatementsotherthanstatementsofhistorical fact,includingthosestatementsthatareidentifiedbytheuseofthewords"anticipates,""estimates,""expects,""intends,"
"plans,""predicts,""projects,"andsimilarexpressions.
GLOSSARYOFTERMSANDABBREVIATIONSWeusethewords"our,""we"or"us"withrespecttocertaininformationthatrelatestoAmeren,AmerenMissouri,andAmerenIllinois,collectively.Whenappropriate,subsidiariesofAmerenCorporationarenamedspecificallyastheirvariousbusinessactivitiesarediscussed.2006IncentivePlan-The2006OmnibusIncentiveCompensationPlan,providesforcompensatorystock-basedawardstoeligibleemployeesanddirectors.The2006 OmnibusIncentiveCompensationPlanwasreplaced prospectivelyfornewgrantsbythe2014IncentivePlan.
2012CreditAgreements-The2012IllinoisCreditAgreementandthe2012MissouriCreditAgreement, collectively.
2012IllinoisCreditAgreement-Ameren'sandAmerenIllinois'$1.1billionmultiyearseniorunsecuredcredit agreement.Theagreementwasamendedandrestatedin December2014andexpiresonDecember11,2019.
2012MissouriCreditAgreement-Ameren'sandAmerenMissouri's$1billionmultiyearseniorunsecuredcredit agreement.Theagreementwasamendedandrestatedin December2014andexpiresonDecember11,2019.
2014IncentivePlan-The2014OmnibusIncentiveCompensationPlan,whichbecameeffectiveinApril2014 andprovidesforcompensatorystock-basedawardsto eligibleemployeesanddirectors.
AER-AmerenEnergyResourcesCompany,LLC,aformerAmerenCorporationsubsidiarythatconsistedofnon-rate-regulatedoperations.InDecember2013,AERcontributed substantiallyallofitsassetsandliabilities,includingits ownershipinterestsinGenco,AERG,andMarketing Company,toNewAER.MedinaValleywasdistributedfrom AERtoAmereninMarch2013.
AERG-AmerenEnergyResourcesGeneratingCompany,aformerAERsubsidiarythatoperatedamerchantelectric generationbusinessinIllinois.InDecember2013,AERG wasincludedinthedivestitureofNewAERtoIPH.
FollowingtheNewAERdivestiture,AERGbecameIllinois PowerResourcesGenerating,LLC.
Ameren-AmerenCorporationanditssubsidiariesonaconsolidatedbasis.Inreferencestofinancingactivities, acquisitionactivities,orliquidityarrangements,Amerenis definedasAmerenCorporation,theparent.
AmerenCompanies-AmerenCorporation,AmerenMissouri,andAmerenIllinois,collectively,whichare individualregistrantswithintheAmerenconsolidated
group.
AmerenIllinoisorAIC-AmerenIllinoisCompany,anAmerenCorporationsubsidiarythatoperatesrate-regulated electricandnaturalgastransmissionanddistribution businessesinIllinois,doingbusinessasAmerenIllinois.
AmerenIllinoisisalsodefinedasafinancialreporting
segment.
AmerenIllinoisMerger-In2010,CILCOandIPmergedwithandintoCIPS,withthesurvivingcorporationrenamed AmerenIllinoisCompany.
AmerenMissouriorAMO-UnionElectricCompany,anAmerenCorporationsubsidiarythatoperatesarate-regulatedelectricgeneration,transmissionanddistribution businessandarate-regulatednaturalgastransmissionanddistributionbusinessinMissouri,doingbusinessas AmerenMissouri.AmerenMissouriisalsodefinedasa financialreportingsegment.
AmerenServices-AmerenServicesCompany,anAmerenCorporationsubsidiarythatprovidessupportservicesto Amerenanditssubsidiaries.
AMIL-TheMISObalancingauthorityareaoperatedbyAmeren,whichincludestheloadofAmerenIllinoisand
ATXI.
AMMO-TheMISObalancingauthorityareaoperatedbyAmeren,whichincludestheloadandenergycentersof AmerenMissouri.
ARO-Assetretirementobligations.
ATXI-AmerenTransmissionCompanyofIllinois,anAmerenCorporationsubsidiarythatisengagedinthe constructionandoperationofelectrictransmissionassets.
Baseload-Theminimumamountofelectricpowerdeliveredorrequiredoveragivenperiodoftimeatasteady
rate.
Btu-Britishthermalunit,astandardunitformeasuringthequantityofheatenergyrequiredtoraisethetemperatureof onepoundofwaterbyonedegreeFahrenheit.
CAIR-CleanAirInterstateRule.
CCR-Coalcombustionresiduals,whichincludeflyash,bottomash,boilerslagandfluegasdesulfurization materialsgeneratedfromburningcoaltogenerate
electricity.
CILCO-CentralIllinoisLightCompany,aformerAmerenCorporationsubsidiarythatoperatedrate-regulatedelectric andnaturalgastransmissionanddistributionbusinessesin Illinois,beforetheAmerenIllinoisMerger.
CIPS-CentralIllinoisPublicServiceCompany,anAmerenCorporationsubsidiary,renamedAmerenIllinoisCompany upontheeffectivenessoftheAmerenIllinoisMerger,which operatesrate-regulatedelectricandnaturalgas transmissionanddistributionbusinessesinIllinois.
CleanPowerPlan-"CarbonPollutionEmissionGuidelinesforExistingStationarySources:ElectricUtilityGenerating Units,"aproposedrulepublishedbytheEPAinJune2014.
CO 2-Carbondioxide.
COL-Nuclearenergycentercombinedconstructionandoperatinglicense.
Coolingdegree-days-Thesummationofpositivedifferencesbetweenthemeandailytemperatureanda65-degreeFahrenheitbase.Thisstatisticisusefulasan indicatorofelectricitydemandbyresidentialand commercialcustomersforsummercooling.
CSAPR-Cross-StateAirPollutionRule.
CSRA-NaturalGasConsumer,SafetyandReliabilityAct,anIllinoislawthatencouragesnaturalgasutilitiesto acceleratemodernizationofthestate'snaturalgas infrastructurethroughtheuseofaQIPrider.
CT-Combustionturbineusedprimarilyforpeakingelectricgenerationcapacity.
1 Dekatherm-AstandardunitofenergyequivalenttoonemillionBtus.
DOE-DepartmentofEnergy,aUnitedStatesgovernment agency.
DRPlus-AmerenCorporation'sdividendreinvestmentanddirectstockpurchaseplan.
Dynegy-DynegyInc.
EEI-ElectricEnergy,Inc.,aformer80%-ownedGencosubsidiarythatoperatedmerchantelectricgeneration energycentersandFERC-regulatedtransmissionfacilitiesin Illinois.InDecember2013,Genco'sownershipinterestin EEIwasincludedinthedivestitureofNewAERtoIPH.
Entergy-EntergyArkansas,Inc.
EPA-EnvironmentalProtectionAgency,aUnitedStatesgovernmentagency.
ERISA-EmployeeRetirementIncomeSecurityActof1974,asamended.
ExchangeAct-SecuritiesExchangeActof1934,as amended.
FAC-Fueladjustmentclause,afuelandpurchasedpowercostrecoverymechanismthatallowsAmerenMissourito recover,throughcustomerrates,95%ofchangesinnet energycostsgreaterorlessthantheamountsetinbase rateswithoutatraditionalrateproceeding,subjectto MoPSCprudencereviews.Netenergycostsincludefuel andpurchasedpowercosts,includingtransportation chargesandrevenues,netofoff-systemsales.
FASB-FinancialAccountingStandardsBoard,arulemakingorganizationthatestablishesfinancial accountingandreportingstandardsintheUnitedStates.
FERC-FederalEnergyRegulatoryCommission,aUnitedStatesgovernmentagency.
Fitch-FitchRatings,acreditratingagency.
FTRs-Financialtransmissionrights,financialinstrumentsthatspecifywhethertheholdershallpayorreceive compensationforcertaincongestion-relatedtransmission chargesbetweentwodesignatedpoints.
GAAP-GenerallyacceptedaccountingprinciplesintheUnitedStates.
Genco-AmerenEnergyGeneratingCompany,aformerAERsubsidiarythatoperatedamerchantelectricgeneration businessinIllinoisandheldan80%ownershipinterestin EEI.InDecember2013,Gencowasincludedinthe divestitureofNewAERtoIPH.FollowingtheNewAER divestiture,GencobecameIllinoisPowerGenerating
Company.
Heatingdegree-days-Thesummationofnegativedifferencesbetweenthemeandailytemperatureanda65-degreeFahrenheitbase.Thisstatisticisusefulasan indicatorofdemandforelectricityandnaturalgasforwinter heatingbyresidentialandcommercialcustomers.
IBEW-InternationalBrotherhoodofElectricalWorkers,alaborunion.
ICC-IllinoisCommerceCommission,astateagencythatregulatesIllinoisutilitybusinesses,includingAmeren IllinoisandATXI.
IEIMA-IllinoisEnergyInfrastructureModernizationAct,anIllinoislawthatestablishedaperformance-basedformula processfordeterminingelectricdeliveryservicerates.Byitselectiontoparticipateinthisregulatoryframework, AmerenIllinoisisrequiredtomakeincrementalcapital expenditurestomodernizeitselectricdistributionsystem, meetperformancestandards,andcreatejobsinIllinois, amongotherrequirements.
IP-IllinoisPowerCompany,aformerAmerenCorporationsubsidiarythatoperatedrate-regulatedelectricandnatural gastransmissionanddistributionbusinessesinIllinois, beforetheAmerenIllinoisMerger.
IPA-IllinoisPowerAgency,astategovernmentagencythathasbroadauthoritytoassistintheprocurementof electricpowerforresidentialandsmallcommercial
customers.
IPH-IllinoisPowerHoldings,LLC,anindirectwhollyownedsubsidiaryofDynegy.
IRS-InternalRevenueService,aUnitedStatesgovernment agency.
ISRS-Infrastructuresystemreplacementsurcharge,whichisacostrecoverymechanismthatallowsAmerenMissouri torecovernaturalgasinfrastructurereplacementcosts fromutilitycustomerswithoutatraditionalrateproceeding.
IUOE-InternationalUnionofOperatingEngineers,alabor union.
Kilowatthour-Ameasureofelectricityconsumptionequivalenttotheuseof1,000wattsofpoweroverone
hour.
LIUNA-Laborers'InternationalUnionofNorthAmerica,alaborunion.
MarketingCompany-AmerenEnergyMarketingCompany,aformerAERsubsidiarythatmarketedpowerforGenco, AERG,andEEI.MarketingCompanywasincludedinthe divestitureofNewAERtoIPHinDecember2013.Following theNewAERdivestiture,MarketingCompanybecame IllinoisPowerMarketingCompany.
MATS-MercuryandAirToxicsStandards.MedinaValley-AmerenEnergyMedinaValleyCogen,LLC,anAmerenCorporationsubsidiary.Thiscompanywas distributedfromAERtoAmereninMarch2013.
MEEIA-MissouriEnergyEfficiencyInvestmentAct,aMissourilawthatallowselectricutilitiestorecovercosts relatedtoMoPSC-approvedcustomerenergyefficiency
programs.
MegawatthourorMWh-Onethousandkilowatthours.MerchantGeneration-Aformerfinancialreportingsegmentthat,priortothedivestitureofNewAERtoIPHin December2013,consistedprimarilyoftheoperationsof AER,includingGenco,AERG,MarketingCompanyand, throughMarch2013,MedinaValley.
MGP-Manufacturedgasplant.
MIEC-MissouriIndustrialEnergyConsumers,anassociationofindustrialcompanies.
MISO-MidcontinentIndependentSystemOperator,Inc.,anRTO.
MissouriEnvironmentalAuthority-EnvironmentalImprovementandEnergyResourcesAuthorityofthestate ofMissouri,agovernmentalbodyauthorizedtofinance environmentalprojectsbyissuingtax-exemptbondsand
notes.
Mmbtu-OnemillionBtus.
2 Moneypool-BorrowingagreementsamongAmerenanditssubsidiariestocoordinateandprovideforcertainshort-termcashandworkingcapitalrequirements.
Moody's-Moody'sInvestorsServiceInc.,acreditrating agency.
MoOPC-MissouriOfficeofthePublicCounsel.
MoPSC-MissouriPublicServiceCommission,astateagencythatregulatesMissouriutilitybusinesses,including AmerenMissouri.
MTM-Mark-to-market.
MW-Megawatt.Nativeload-End-useretailcustomerswhomweareobligatedtoservebystatute,franchise,contract,orother regulatoryrequirement.
NEIL-NuclearElectricInsuranceLimited,whichincludesallofitsaffiliatedcompanies.
NERC-NorthAmericanElectricReliabilityCorporation.Netenergycosts-Netenergycosts,asdefinedintheFAC,includefuelandpurchasedpowercosts,including transportationchargesandrevenues,netofoff-systemsales.
NewAER-NewAmerenEnergyResourcesCompany,LLC,alimitedliabilitycompanyformedasadirectwhollyowned subsidiaryofAER.NewAER,acquiredbyIPHinDecember 2013,includedsubstantiallyalloftheassetsandliabilities ofAER,exceptforcertainassetsandliabilitiesretainedby Ameren.FollowingtheNewAERdivestiture,NewAER becameIllinoisPowerResources,LLC.
NO 2-Nitrogendioxide.
NO x-Nitrogenoxides.
Noranda-NorandaAluminum,Inc.
NPNS-Normalpurchasesandnormalsales.
NRC-NuclearRegulatoryCommission,aUnitedStatesgovernmentagency.
NSPS-NewSourcePerformanceStandards,aprovisionundertheCleanAirAct.
NSR-NewSourceReviewprovisionsoftheCleanAirAct,whichincludeNonattainmentNewSourceReviewand PreventionofSignificantDeteriorationregulations.
NWPA-NuclearWastePolicyActof1982,asamended.
NYMEX-NewYorkMercantileExchange.
NYSE-NewYorkStockExchange,Inc.
OATT-OpenAccessTransmissionTariff.
OCI-Othercomprehensiveincome(loss)asdefinedby GAAP.
Off-systemsalesrevenues-Revenuesfromotherthannativeloadsales,includingwholesalesales.
OTC-Over-the-counter.
PGA-PurchasedGasAdjustmenttariffs,whichpermitprudentlyincurrednaturalgascoststoberecovereddirectly fromutilitycustomerswithoutatraditionalrateproceeding.
PJM-PJMInterconnectionLLC.,anRTO.PUHCA2005-ThePublicUtilityHoldingCompanyActof 2005.
QIP-Qualifyinginfrastructureplant.Costsofqualifyinginfrastructureplantthatmaybeincludedinarecovery mechanismenactedaspartoftheCSRA.
Ratebase-Thenetvalueofpropertyonwhichapublicutilityispermittedtoearnanallowedrateofreturn.
Regulatorylag-Theexposuretodifferencesincostsincurredandactualsalesvolumelevelsascomparedwith theassociatedamountsincludedincustomerrates.Rate increaserequestsintraditionalratecaseproceedingscan takeupto11monthstobeacteduponbytheMoPSCand theICC.Asaresult,revenueincreasesauthorizedby regulatorswilllagbehindchangingcostsandsalesvolume levelswhenbasedonhistoricalperiods.
Revenuerequirement-Thecostofprovidingutilityservicetocustomers,whichiscalculatedasthesumofautility's recoverableoperatingandmaintenanceexpenses, depreciationandamortizationexpense,taxes,andan allowedreturnoninvestment.
RFP-Requestforproposal.RocklandCapital-RocklandCapital,LLC,togetherwiththespecialpurposeentityaffiliatedwith,andformedby, RocklandCapital,LLC,thatacquiredtheElgin,GibsonCity, andGrandTowergas-firedenergycentersinJanuary2015.
RTO-Regionaltransmissionorganization.
S&P-Standard&Poor'sRatingsServices,acreditrating agency.
SEC-SecuritiesandExchangeCommission,aUnitedStatesgovernmentagency.
SERC-SERCReliabilityCorporation,oneoftheregionalelectricreliabilitycouncilsorganizedforcoordinatingthe planningandoperationofthenation'sbulkpowersupply.
SO 2-Sulfurdioxide.Testyear-Theselectedperiodoftime,typicallyatwelve-monthperiod,forwhichautility'shistoricalorforecasted operatingresultsareusedtodeterminetheappropriate revenuerequirement.
UA-UnitedAssociationofPlumbersandPipefitters,alaborunion.
3 FORWARD-LOOKINGSTATEMENTSStatementsinthisreportnotbasedonhistoricalfactsareconsidered"forward-looking"and,accordingly,involverisksanduncertaintiesthatcouldcauseactualresultsto differmateriallyfromthosediscussed.Althoughsuch forward-lookingstatementshavebeenmadeingoodfaith andarebasedonreasonableassumptions,thereisno assurancethattheexpectedresultswillbeachieved.These statementsinclude(withoutlimitation)statementsasto futureexpectations,beliefs,plans,strategies,objectives, events,conditions,andfinancialperformance.In connectionwiththe"safeharbor"provisionsofthePrivate SecuritiesLitigationReformActof1995,weareproviding thiscautionarystatementtoidentifyimportantfactorsthat couldcauseactualresultstodiffermateriallyfromthose anticipated.Thefollowingfactors,inadditiontothose discussedunderRiskFactorsandelsewhereinthisreport andinourotherfilingswiththeSEC,couldcauseactual resultstodiffermateriallyfrommanagementexpectations suggestedinsuchforward-lookingstatements:
regulatory,judicial,orlegislativeactions,includingchangesinregulatorypoliciesandratemaking determinations,suchasAmerenMissouri'sJuly2014 electricratecasefiling;AmerenMissouri'sDecember 2014MEEIAfiling;AmerenIllinois'appealoftheICC's naturalgasrateorderissuedinDecember2013; AmerenIllinois'January2015naturalgasdelivery serviceratecasefiling;FERCsettlementprocedures regardingapotentialAmerenIllinoiselectric transmissionraterefund;thecomplaintcasefiledwith theFERCseekingareductionintheallowedreturnon commonequityundertheMISOtariff;andfuture regulatory,judicial,orlegislativeactionsthatseekto changeregulatoryrecoverymechanisms; theeffectofAmerenIllinoisparticipatingina performance-basedformularatemakingprocessunder theIEIMA,includingthedirectrelationshipbetween AmerenIllinois'returnoncommonequityand30-year UnitedStatesTreasurybondyields,therelatedfinancial commitmentsrequiredbytheIEIMA,andtheresulting uncertainimpactonthefinancialcondition,resultsof operations,andliquidityofAmerenIllinois; thepotentialextensionoftheIEIMAafteritscurrent sunsetprovisionattheendof2017,andanychanges totheperformance-basedformularatemakingprocess orrequiredfinancialcommitments; theeffectsofincreasedcompetitioninthefuturedue to,amongotherfactors,deregulationofcertainaspects ofourbusinessateitherthestateorfederallevel; changesinlawsandothergovernmentalactions, includingmonetary,fiscal,tax,andenergypolicies; theeffectsondemandforourservicesresultingfrom technologicaladvances,includingadvancesin customerenergyefficiencyanddistributedgeneration sources,whichgenerateelectricityatthesiteof
consumption; theeffectivenessofAmerenMissouri'scustomer energyefficiencyprogramsandtheabilitytoearn incentiveawardsundertheMEEIA; thetimingofincreasingcapitalexpenditureand operatingexpenserequirementsandourabilityto recoverthesecostsinatimelymanner; thecostandavailabilityoffuelsuchascoal,natural gas,andenricheduraniumusedtoproduceelectricity; thecostandavailabilityofpurchasedpowerandnatural gasfordistribution;andthelevelandvolatilityoffuture marketpricesforsuchcommodities,includingour abilitytorecoverthecostsforsuchcommoditiesand ourcustomers'tolerancefortherelatedrateincreases; theeffectivenessofourriskmanagementstrategies andouruseoffinancialandderivativeinstruments; businessandeconomicconditions,includingtheir impactonkeycustomers,interestrates,baddebt expense,anddemandforourproducts; disruptionsofthecapitalmarkets,deteriorationin creditmetricsoftheAmerenCompanies,orother eventsthatmayhaveanadverseeffectonthecostor availabilityofcapital,includingshort-termcreditand
liquidity; ourassessmentofourliquidity; theimpactoftheadoptionofnewaccountingguidance andtheapplicationofappropriatetechnicalaccounting rulesandguidance; actionsofcreditratingagenciesandtheeffectsofsuch
actions;theimpactofweatherconditionsandothernatural phenomenaonusandourcustomers,includingthe impactofsystemoutages; theconstruction,installation,performance,andcost recoveryofgeneration,transmission,anddistribution
assets;theeffectsofourincreasinginvestmentinelectric transmissionprojectsanduncertaintyastowhetherwe willachieveourexpectedreturnsinatimelyfashion,if atall;theextenttowhichAmerenMissouriprevailsinits claimagainstaninsurerinconnectionwiththe December2005breachoftheupperreservoiratits TaumSaukpumped-storagehydroelectricenergy
center;theextenttowhichAmerenMissouriispermittedbyits regulatorstorecoverinratestheinvestmentsitmade inconnectionwithadditionalnucleargenerationatits Callawayenergycenter; operationofAmerenMissouri'sCallawayenergycenter, includingplannedandunplannedoutages,and decommissioningcosts; theeffectsofstrategicinitiatives,includingmergers, acquisitionsanddivestitures,andanyrelatedtax
implications; theimpactofcurrentenvironmentalregulationsandnew,morestringent,orchangingrequirements, includingthoserelatedtogreenhousegases,other emissionsanddischarges,coolingwaterintake structures,CCR,andenergyefficiency,thatareenacted overtimeandthatcouldlimitorterminatethe operationofcertainofourenergycenters,increaseour costsorinvestmentrequirements,resultinan impairmentofourassets,causeustosellourassets, 4 reduceourcustomers'demandforelectricityornaturalgas,orotherwisehaveanegativefinancialeffect; theimpactofcomplyingwithrenewableenergy portfoliorequirementsinMissouri; labordisputes,workforcereductions,futurewageand employeebenefitscosts,includingchangesindiscount rates,mortalitytables,andreturnsonbenefitplan
assets;theinabilityofourcounterpartiestomeettheir obligationswithrespecttocontracts,credit agreements,andfinancialinstruments; thecostandavailabilityoftransmissioncapacityforthe energygeneratedbyAmerenMissouri'senergycenters orrequiredtosatisfyAmerenMissouri'senergysales; theinabilityofDynegyandIPHtosatisfytheir indemnityandotherobligationstoAmerenin connectionwiththedivestitureofNewAERtoIPH; legalandadministrativeproceedings;and actsofsabotage,war,terrorism,cyberattacks,orother intentionallydisruptiveacts.Giventheseuncertainties,unduerelianceshouldnotbeplacedontheseforward-lookingstatements.Excepttotheextentrequiredbythefederalsecuritieslaws,weundertakenoobligationtoupdateorrevisepubliclyanyforward-lookingstatements toreflectnewinformationorfutureevents.PARTIITEM1.BUSINESS GENERALAmeren,headquarteredinSt.Louis,Missouri,isapublicutilityholdingcompanyunderPUHCA2005,administeredbytheFERC.Amerenwasformedin1997by themergerofAmerenMissouriandCIPSCOInc.,which wastheparentcompanyofCIPS.Amerenacquired CILCORPInc.,whichwastheparentcompanyofCILCO,in 2003andIPin2004.CIPS,CILCO,andIPweremergedto formAmerenIllinoisin2010.Ameren'sprimaryassetsare itsequityinterestsinitssubsidiaries,includingAmeren MissouriandAmerenIllinois.Ameren'ssubsidiariesare separate,independentlegalentitieswithseparate businesses,assets,andliabilities.DividendsonAmeren's commonstockandthepaymentofotherexpensesby Amerendependondistributionsmadetoitbyits
subsidiaries.BelowisasummarydescriptionofAmerenMissouriandAmerenIllinois.Amoredetaileddescriptioncanbe foundinNote1-SummaryofSignificantAccounting PoliciesunderPartII,Item8,ofthisreport.
AmerenMissourioperatesarate-regulatedelectricgeneration,transmission,anddistributionbusinessand arate-regulatednaturalgastransmissionand distributionbusinessinMissouri.
AmerenIllinoisoperatesrate-regulatedelectricand naturalgastransmissionanddistributionbusinessesin
Illinois.Amerenhasvariousothersubsidiariesresponsibleforactivitiessuchastheprovisionofsharedservices.Ameren alsohasasubsidiary,ATXI,thatoperatesaFERCrate-regulatedelectrictransmissionbusiness.ATXIisdeveloping MISO-approvedelectrictransmissionprojects,includingthe IllinoisRivers,SpoonRiver,andMarkTwainprojects.
AmerenisalsopursuingreliabilityprojectswithinAmeren Missouri'sandAmerenIllinois'serviceterritoriesaswellas competitiveelectrictransmissioninvestmentopportunities outsideoftheseterritories,includinginvestmentsoutsideof
MISO.InDecember2013,AmerencompletedthedivestitureofNewAERtoIPH.InJanuary2014,MedinaValley completeditssaleoftheElgin,GibsonCity,andGrand Towergas-firedenergycenterstoRocklandCapital.In addition,in2013,AmerenabandonedtheMeredosiaand Hutsonvilleenergycentersuponthecompletionofthe divestitureofNewAERtoIPH.Amerenhasbegunto demolishtheHutsonvilleenergycenterandexpectsto demolishtheMeredosiaenergycenterthereafter.Asa resultoftheseevents,Amerensegregatedtheoperating results,assets,andliabilitiesforNewAERandfortheElgin, GibsonCity,GrandTower,Meredosia,andHutsonville energycentersandpresentedthemseparatelyas discontinuedoperationsforallperiodspresentedinthis report.Unlessotherwisestated,thefollowinginformation presentedinPartI,Item1,ofthisreportexcludes discontinuedoperationsforallperiodspresented.SeeNote 16-DivestitureTransactionsandDiscontinuedOperations underPartII,Item8,ofthisreportforadditional
information.ThefollowingtablepresentsourtotalemployeesatDecember31,2014:AmerenMissouri
.................................
3,924AmerenIllinois
...................................
3,208AmerenServicesandOther
.........................
1,395 Ameren........................................
8,527AsofJanuary1,2015,theIBEW,theIUOE,theLIUNA,andtheUAlaborunionscollectivelyrepresentedabout55%
ofAmeren'stotalemployees.Theyrepresented63%ofthe employeesatAmerenMissouriand60%atAmerenIllinois.
Thecollectivebargainingagreementshavetermsranging fromtwotosixyears,andexpirebetween2015and2017.Foradditionalinformationaboutthedevelopmentofourbusinesses,ourbusinessoperations,andfactors affectingouroperationsandfinancialposition,see Management'sDiscussionandAnalysisofFinancial 5
ConditionandResultsofOperationsunderPartII,Item7,ofthisreportandNote1-SummaryofSignificant AccountingPoliciesunderPartII,Item8,ofthisreport.BUSINESSSEGMENTSAmerenhastworeportablesegments:AmerenMissouriandAmerenIllinois.AmerenMissouriandAmerenIllinoiseachhaveonereportablesegment.TheAmeren MissourisegmentforbothAmerenandAmerenMissouri includesalltheoperationsofAmerenMissouri.TheAmeren IllinoissegmentforbothAmerenandAmerenIllinois consistsofalloftheoperationsofAmerenIllinois.SeeNote 1-SummaryofSignificantAccountingPoliciesandNote 17-SegmentInformationunderPartII,Item8,ofthis reportforadditionalinformationonreportingsegments.RATESANDREGULATION RatesTheratesthatAmerenMissouri,AmerenIllinois,andATXIareallowedtochargefortheirutilityservicessignificantlyinfluencetheresultsofoperations,financial position,andliquidityofthesecompaniesandAmeren.The electricandnaturalgasutilityindustryishighlyregulated.
Theutilityrateschargedtocustomersaredetermined,in largepart,bygovernmentalentities,includingtheMoPSC, theICC,andtheFERC.Decisionsbytheseentitiesare influencedbymanyfactors,includingthecostofproviding service,theprudencyofexpenditures,thequalityofservice,regulatorystaffknowledgeandexperience,customer intervention,economicconditions,publicpolicy,andsocial andpoliticalviews.Decisionsmadebythesegovernmental entitiesregardingratesarelargelyoutsideofourcontrol.
Thesedecisions,aswellastheregulatorylaginvolvedin filingandgettingnewratesapproved,couldhaveamaterial effectontheresultsofoperations,financialposition,and liquidityofAmeren,AmerenMissouri,andAmerenIllinois.
TheextentoftheregulatorylagvariesforeachofAmeren's electricandnaturalgasjurisdictions,withtheFERC-regulatedelectricandIllinoiselectricdistribution jurisdictionsexperiencingtheleastamountofregulatory lag.Dependingonthejurisdiction,theeffectsofregulatory lagaremitigatedthroughavarietyofmeans,includingthe useofafuturetestyear,theimplementationoftrackersand riders,thedeferralofdepreciationforassetsnotyet includedinratebase,thelevelandtimingofexpenditures, andbyregulatoryframeworksthatincludeannualrevenue requirementreconciliations.TheMoPSCregulatesratesandothermattersforAmerenMissouri.TheICCregulatesratesandothermatters forAmerenIllinois,aswellasnon-rateutilitymattersfor ATXI.ATXIdoesnothaveretaildistributioncustomers; therefore,theICCdoesnothaveauthoritytoregulateits rates.TheFERCregulatesAmerenMissouri's,Ameren Illinois',andATXI'scost-basedratesforthewholesale distributionandtransmissionofenergyininterstate commerceandvariousothermattersdiscussedbelow underGeneralRegulatoryMatters.Thefollowingtablesummarizes,byratejurisdiction,thekeytermsoftherateordersineffectforcustomerbillingsforeachofAmeren'srate-regulatedutilitiesasofJanuary1,2015.
Regulator Allowed Return on Equity Percent of Common EquityRateBase(inbillions)PortionofAmeren's2014 Operating Revenues (a)AmerenMissouriElectricservice (b)(c)........................................MoPSC9.8%52.3%$6.856%Naturalgasdeliveryservice (d)...............................MoPSC(d)52.9%$0.23%AmerenIllinoisElectricdistributiondeliveryservice (e).........................ICC9.25%51.0%$2.123%Naturalgasdeliveryservice (f)................................ICC9.1%51.7%$1.116%Electrictransmissiondeliveryservice (g)........................FERC12.38%53.8%$0.92%
ATXIElectrictransmissiondeliveryservice (g)........................FERC12.38%56.0%$0.5(h)(a)Includespass-throughcostsrecoveredfromcustomers,suchaspurchasedpowerforelectricdistributiondeliveryserviceandgaspurchasedforresalefornaturalgasdeliveryservice,andintercompanyeliminations.(b)AmerenMissouri'selectricgeneration,transmission,anddeliveryserviceratesarebundledtogetherandchargedtoretailcustomersunderacombinedelectricservicerate.(c)BasedontheMoPSC'sDecember2012rateorder,whichbecameeffectiveonJanuary2,2013.AmerenMissouriwillhavenewelectricservicerateseffectivebyJune2015,uponthecompletionofitsratecaseproceedingthatwasfiledinJuly2014.(d)BasedontheMoPSC'sJanuary2011rateorder,whichbecameeffectiveonFebruary20,2011.Thisrateorderdidnotspecifytheallowedreturnonequity.(e)BasedontheICC'sDecember2014rateorder,whichbecameeffectiveonJanuary1,2015.TheDecember2014rateorderwasbasedon2013recoverablecosts,expectednetplantadditionsfor2014,andthemonthlyyieldsduring2013ofthe30-yearUnitedStatesTreasurybondsplus580basispoints.AmerenIllinois'2015electricdistributiondeliveryservicerevenueswillbebasedonits2015actualrecoverablecosts,rate base,andreturnoncommonequity,ascalculatedundertheIEIMA'sperformance-basedformularatemakingframework.(f)BasedontheICC'sDecember2013rateorder,whichbecameeffectiveonJanuary1,2014.Therateorderwasbasedona2014futuretestyear.
(g)TransmissionratesareupdatedandbecomeeffectiveeachJanuary.Theyaredeterminedbyacompany-specific,forward-lookingrateformulabasedoneachyear'sforecastedinformation.The12.38%returnisthesubjectoftwoFERCcomplaintproceedingsthatchallengetheallowed returnoncommonequityforMISOtransmissionowners.(h)Lessthan1%.
6 AmerenMissouri ElectricAmerenMissouri'selectricoperatingrevenuesaresubjecttoregulationbytheMoPSC.Ifcertaincriteriaaremet,thenAmerenMissouri'selectricratesmaybeadjusted withoutatraditionalrateproceeding.TheFACpermits AmerenMissouritorecover,throughcustomerrates,95%
ofchangesinnetenergycostsgreaterthanorlessthanthe amountsetinbaserateswithoutatraditionalrate proceeding,subjecttoprudencereviews.Netenergycosts, asdefinedintheFAC,includefuelandpurchasedpower costs,includingtransportationchargesandrevenues,netof off-systemsales.Similarly,allofAmerenMissouri'sMEEIA costs,includingcustomerenergyefficiencyprogramcosts, lostrevenues,andanyincentiveawards,arerecovered throughariderthatmaybeadjustedwithoutatraditional rateproceeding.InadditiontotheFACandtheMEEIArecoverymechanisms,AmerenMissouriemploysothercost recoverymechanisms,includingavegetationmanagement andinfrastructureinspectioncosttracker,apensionand postretirementbenefitcosttracker,anuncertaintax positiontracker,arenewableenergystandardscosttracker, asolarrebateprogramtracker,andastormcosttracker.
EachofthesetrackersallowsAmerenMissouritorecord thedifferencebetweenthelevelofincurredcostsunder GAAPandthelevelofsuchcostsbuiltintoratesasa regulatoryassetorregulatoryliability,whichwillbe includedinratesinafutureMoPSCrateorder.TheFERCregulatestherateschargedandthetermsandconditionsforelectrictransmissionservices.Because AmerenMissouriisamemberofMISO,itstransmission rateiscalculatedinaccordancewiththeMISOOATT.The transmissionrateisupdatedeachJunebasedonAmeren Missouri'sfilingswiththeFERC.Thisrateisnotdirectly chargedtoMissouriretailcustomersbecause,inMissouri, theMoPSCincludestransmission-relatedcostsand revenuesinbundledretailrates.Asdiscussedabove, AmerenMissouritransportationchargesandrevenuesare includedintheFAC.NaturalGasAmerenMissouri'snaturalgasoperatingrevenuesaresubjecttoregulationbytheMoPSC.Ifcertaincriteriaaremet,thenAmerenMissouri'snaturalgasratesmaybe adjustedwithoutatraditionalrateproceeding.PGAclauses permitprudentlyincurrednaturalgascoststobepassed directlytocustomers.TheISRSalsopermitscertain prudentlyincurrednaturalgasinfrastructurereplacement coststoberecoveredfromcustomersonamoretimely basisbetweenratecases.Thereturnonequitytobeused byAmerenMissouriforpurposesoftheISRStariffis10%.AmerenIllinois ElectricAmerenIllinois'electricdistributiondeliveryserviceoperatingrevenuesareregulatedbytheICC,whileitselectrictransmissiondeliveryserviceoperatingrevenues areregulatedbytheFERC.In2014,AmerenIllinois'electric distributiondeliveryserviceaccountedfor91%ofitstotal electricoperatingrevenues.Theremainderwererelatedto electrictransmissiondeliveryservice.UnderIllinoislaw,electriccustomersmaychoosetheirownelectricenergyprovider.However,AmerenIllinoisis requiredtoserveastheprovideroflastresortforelectric customerswithinitsterritorywhohavenotchosenan alternativeretailelectricsupplier.In2014,AmerenIllinois wastheprovideroflastresortforapproximately26%of electriccustomerswithinitsterritory.AmerenIllinois' obligationtoprovidethisrequiredelectricservicevariesby customersize.AmerenIllinoisisnotrequiredtoofferfixed-pricedelectricservicetocustomerswithelectricdemands of400kilowattsorgreater,asthemarketforservicetothis groupofcustomershasbeendeclaredcompetitive.Power andrelatedprocurementcostsincurredbyAmerenIllinois arepasseddirectlytoitscustomersthroughacostrecovery
mechanism.AmerenIllinoisparticipatesintheperformance-basedformularatemakingprocessestablishedpursuanttothe IEIMA.TheIEIMAwasdesignedtoprovidefortherecovery ofactualcostsofelectricdeliveryservicethatareprudently incurredandtoreflecttheutility'sactualregulatedcapital structurethroughaformulaforcalculatingthereturnon equitycomponentofthecostofcapital.Thereturnon equitycomponentoftheformularateisequaltothe averageforthecalendaryearofthemonthlyyieldsofthe 30-yearUnitedStatesTreasurybondsplus580basis points.AmerenIllinois'actualreturnonequityrelatingto electricdeliveryserviceissubjecttoacollaradjustmenton earningsinexcessof50basispointsgreaterorlessthanits allowedreturn.TheIEIMAprovidesforanannual reconciliationoftherevenuerequirementnecessaryto reflecttheactualcostsincurredinagivenyearwiththe revenuerequirementincludedincustomerratesforthat year,includinganallowedreturnonequity.Thisannual revenuereconciliation,alongwiththecollaradjustment,if necessary,willbecollectedfromorrefundedtocustomers withinthenexttwoyears.AmerenIllinoisisalsosubjecttoperformancestandardsundertheIEIMA.Failuretoachievethestandards wouldresultinareductioninthecompany'sallowedreturn onequitycalculatedundertheformula.Theperformance standardsincludeimprovementsinservicereliabilityto reduceboththefrequencyanddurationofoutages, reductioninthenumberofestimatedbills,reductionof consumptiononinactivemeters,andareductionin uncollectibleaccountsexpense.TheIEIMAprovidesfor returnonequitypenaltiestotalingupto30basispointsin 2015,34basispointsin2016through2018,and38basis pointsin2019through2022iftheperformancestandards 7
arenotmet.Theformularatemakingprocessiscurrentlyeffectiveuntiltheendof2017.Legislationpassedbythe IllinoisGeneralAssembly,whichisawaitingthegovernor's approval,wouldextendtheformularateprocessuntilthe endof2019,withfurtherextensionpossiblethrough2022.Between2012and2021,AmerenIllinoisisrequired,pursuanttotheIEIMA,toinvest$625millionincapital projectsincrementaltoitsaverageelectricdeliveryservice capitalprojectsinvestmentsof$228millionforcalendar years2008through2010,tomodernizeitsdistribution system.Through2014,AmerenIllinoishasinvested
$149millioninIEIMAcapitalprojectstowardits
$625millionrequirement.Suchinvestmentsareexpected toencourageeconomicdevelopmentandtocreatean estimated450additionaljobswithinIllinois.AmerenIllinois issubjecttomonetarypenaltiesif450additionaljobsare notcreatedduringthepeakprogramyear.AmerenIllinoisemployscostrecoverymechanismsforpowerprocurement,customerenergyefficiencyprograms, certainenvironmentalcosts,andbaddebtexpensenot recoveredinbaserates.AmerenIllinoisalsohasatariff ridertorecoverthecostsofcertainasbestos-relatedclaims.BecauseAmerenIllinoisisamemberofMISO,itstransmissionrateiscalculatedinaccordancewiththeMISO OATT.Currently,theFERC-allowedreturnoncommon equityintheratemakingformulaforMISOtransmission ownersis12.38%.However,the12.38%returnisthe subjectoftwoFERCcomplaintproceedingsthatchallenge theallowedreturnoncommonequityforMISO transmissionowners.InJanuary2015,theFERCscheduled theinitialcaseforhearingproceedings,requiringaninitial decisiontobeissuednolaterthanNovember30,2015.
AlsoinJanuary2015,FERCapprovedanincentiveadderof upto50basispointsontheallowedbasereturnon commonequityforAmerenIllinois'participationinanRTO.
AmerenIllinoiswilldefercollectionofthisincentiveadder untiltheissuanceofthefinalorderaddressingtheinitial MISOcomplaintcase.AmerenIllinoishasreceivedFERC approvaltouseacompany-specific,forward-lookingrate formulaframeworkinsettingitstransmissionrates.These forward-lookingratesareupdatedeachJanuarywith forecastedinformation.Areconciliationduringtheyear, whichadjustsfortheactualrevenuerequirementandactual salesvolumes,isusedtoadjustbillingratesina subsequentyear.InIllinois,theAMILpricingzone transmissionrateischargeddirectlytowholesale customersandalternativeretailelectricsuppliers,which serveunbundledretailload.TheAMILpricingzone transmissionrateandotherMISO-relatedcostsare collectedfromretailcustomerswhohavenotchosenan alternativeretailelectricsupplierthrougharidermechanism inAmerenIllinois'retaildistributiontariffs.NaturalGasAmerenIllinois'naturalgasoperatingrevenuesaresubjecttoregulationbytheICC.Ifcertaincriteriaaremet,thenAmerenIllinois'naturalgasratesmaybeadjustedwithoutatraditionalrateproceeding.PGAclausespermitprudentlyincurrednaturalgascoststobepasseddirectlytocustomers.Also,AmerenIllinoisemployscostrecovery mechanismsforcustomerenergyefficiencyprograms, certainenvironmentalcosts,andbaddebtexpensesnot recoveredinbaserates.InJuly2013,IllinoisenactedtheCSRA,whichencouragesIllinoisnaturalgasutilitiestoaccelerate modernizationofthestate'snaturalgasinfrastructure.The lawallowsnaturalgasutilitiestofileforaQIPrider.AQIP riderprovidesforasurchargetobeaddedtocustomers' billstorecoverdepreciationexpenseforandtoearna returnonqualifyingnaturalgasinvestmentsthatwerenot previouslyincludedinbaserates.Recoverybeginstwo monthsafterthenaturalgasinvestmentsareplacedin serviceandwillcontinueuntiltheinvestmentsareincluded inthebaseratesofafuturenaturalgasratecase.Ameren IllinoisreceivedICCapprovalforitsQIPriderinJanuary 2015,andsubsequentlybeganincludingqualified investmentsandrecordingrevenueunderthisregulatory
framework.InJanuary2015,AmerenIllinoisfiledarequestwiththeICCseekingapprovaltoincreaseitsannualrevenuesfor naturalgasdeliveryservice.Inanattempttoreduce regulatorylag,AmerenIllinois'requestemployeda2016 futuretestyearandalsoincludedaproposaltoimplementa decouplingridermechanismforresidentialandsmall nonresidentialcustomers.Thisdecouplingriderisdesigned toensurethatchangesinnaturalgassalesvolumesdonot affectAmerenIllinois'annualrevenuesfortheserate classes.AdecisionbytheICCinthisproceedingisrequired byDecember2015.
ATXILikeAmerenIllinois,ATXIisamemberofMISO,anditstransmissionrateiscalculatedinaccordancewiththeMISOOATT.Currently,theFERC-allowedreturnon commonequityintheratemakingformulaforMISO transmissionownersis12.38%.However,asdiscussed above,the12.38%returnisthesubjectoftwoFERC complaintproceedingsthatchallengetheallowedreturnon commonequityforMISOtransmissionowners.InJanuary 2015,theFERCscheduledtheinitialcaseforhearing proceedings,requiringaninitialdecisiontobeissuedno laterthanNovember30,2015.AlsoinJanuary2015,FERC approvedanincentiveadderofupto50basispointsonthe allowedbasereturnoncommonequityforATXI's participationinanRTO.ATXIwilldefercollectionofthis incentiveadderuntiltheissuanceofthefinalorder addressingtheinitialMISOcomplaintcase.ATXIhas receivedFERCapprovaltouseacompany-specific, forward-lookingrateformulaframeworkinsettingits transmissionrates.Theseforward-lookingratesare updatedeachJanuarywithforecastedinformation.A reconciliationduringtheyear,whichadjustsfortheactual revenuerequirementandactualsalesvolumes,isusedto adjustbillingratesinasubsequentyear.Additionally,the FERChasapprovedtransmissionrateincentivesrelatingto 8
thethreeMISO-approvedmulti-valueprojectsdiscussedbelow,whichallowconstructionworkinprogresstobe includedinratebase,therebyimprovingthetimelinessof cashrecovery.ThethreeMISO-approvedmulti-valueprojectsbeingdevelopedbyATXIaretheIllinoisRivers,SpoonRiver,and MarkTwainprojects.Thefirstproject,IllinoisRivers, involvestheconstructionofa345-kilovoltlinefromwestern IndianaacrossthestateofIllinoistoeasternMissouri.ATXI hasobtainedacertificateofpublicconvenienceand necessityandprojectapprovalfromtheICCfortheentire IllinoisRiversproject.Afullrangeofconstructionactivities fortheIllinoisRiversprojectbeganin2014.Thefirst sectionsoftheIllinoisRiversprojectareexpectedtobe completedin2016.Thelastsectionofthisprojectis expectedtobecompletedin2019.TheSpoonRiverproject isinnorthwestIllinoisandtheMarkTwainprojectisin northeastMissouri.InAugust2014,ATXIfiledarequestfor acertificateofpublicconvenienceandnecessityandproject approvalfromtheICCfortheSpoonRiverproject.A decisionisexpectedfromtheICCin2015.ATXIexpectsto filearequestforacertificateofpublicconvenienceand necessityandprojectapprovalfromtheMoPSCforthe MarkTwainprojectin2015.Thesetwoprojectsare expectedtobecompletedin2018.Thetotalinvestmentby ATXIinthesethreeprojectsisexpectedtobemorethan
$1.6billion.ForadditionalinformationonAmerenMissouri,AmerenIllinois,andATXIratematters,includingtheFERC complaintcaseschallengingtheallowedreturnoncommon equityforMISOtransmissionowners,seeResultsof OperationsandOutlookinManagement'sDiscussionand AnalysisofFinancialConditionandResultsofOperations underPartII,Item7,QuantitativeandQualitative DisclosuresAboutMarketRiskunderPartII,Item7A,and Note2-RateandRegulatoryMattersandNote15-CommitmentsandContingenciesunderPartII,Item8,of thisreport.GeneralRegulatoryMattersAmerenMissouri,AmerenIllinois,andATXImustreceiveFERCapprovaltoenterintovarioustransactions,suchasissuingshort-termdebtsecuritiesandconducting certainacquisitions,mergers,andconsolidationsinvolving electricutilityholdingcompanies.Inaddition,Ameren Missouri,AmerenIllinois,andATXImustreceive authorizationfromtheapplicablestatepublicutility regulatoryagencytoissuestockandlong-termdebt securities(withmaturitiesofmorethan12months)andto conductmergers,affiliatetransactions,andvariousother
activities.AmerenMissouri,AmerenIllinois,andATXIarealsosubjecttomandatoryreliabilitystandards,including cybersecuritystandardsadoptedbytheFERC,toensurethe reliabilityofthebulkpowerelectricsystem.These standardsaredevelopedandenforcedbyNERCpursuantto authoritygiventoitbytheFERC.IfAmerenoritssubsidiariesweredeterminednottobeincompliancewith anyofthesemandatoryreliabilitystandards,theycould incursubstantialmonetarypenaltiesandothersanctions.UnderPUHCA2005,theFERCandanystatepublicutilityregulatoryagencymayaccessbooksandrecordsof Amerenanditssubsidiariesthataredeterminedtobe relevanttocostsincurredbyAmeren'srate-regulated subsidiariesthatmayaffectjurisdictionalrates.PUHCA 2005alsopermitstheMoPSCandtheICCtorequestthat theFERCreviewcostallocationsbyAmerenServicesto otherAmerencompanies.OperationofAmerenMissouri'sCallawayenergycenterissubjecttoregulationbytheNRC.Itsfacility operatinglicenseexpiresinOctober2024.InDecember 2011,AmerenMissourisubmittedanapplicationtothe NRCtoextendtheenergycenter'soperatinglicenseto 2044.ThereisnodatebywhichtheNRCmustactonthis relicensingrequest.AmerenMissouri'sOsagehydroelectric energycenterandTaumSaukpumped-storage hydroelectricenergycenter,aslicensedprojectsunderthe FederalPowerAct,aresubjecttoFERCregulations affecting,amongotheraspects,thegeneraloperationand maintenanceoftheprojects.ThelicensefortheOsage hydroelectricenergycenterexpiresinMarch2047.The licensefortheTaumSaukpumped-storagehydroelectric energycenterexpiresinJune2044.AmerenMissouri's KeokukenergycenteranditsdamintheMississippiRiver betweenHamilton,Illinois,andKeokuk,Iowa,areoperated underauthoritygrantedbyanActofCongressin1905.Foradditionalinformationonregulatorymatters,seeNote2-RateandRegulatoryMatters,Note10-Callaway EnergyCenter,andNote15-Commitmentsand ContingenciesunderPartII,Item8,ofthisreport.EnvironmentalMattersCertainofouroperationsaresubjecttofederal,state,andlocalenvironmentalstatutesandregulationsrelatingtothesafetyandhealthofpersonnel,thepublic,andthe environment.Theseenvironmentalstatutesandregulations includerequirementsrelatingtoidentification,generation, storage,handling,transportation,disposal,recordkeeping, labeling,reporting,andemergencyresponseinconnection withhazardousandtoxicmaterials;safetyandhealth standards;andenvironmentalprotectionrequirements, includingstandardsandlimitationsrelatingtothedischarge ofairandwaterpollutantsandthemanagementofwaste andbyproductmaterials.Failuretocomplywiththese statutesorregulationscouldhavematerialadverseeffects onus.Wecouldbesubjecttocriminalorcivilpenaltiesby regulatoryagenciesorwecouldbeorderedbythecourtsto payprivateparties.Exceptasindicatedinthisreport,we believethatweareinmaterialcompliancewithexisting statutesandregulationsthatcurrentlyapplytoour
operations.TheEPAisdevelopingandimplementingenvironmentalregulationsthatwillhaveasignificantimpact ontheelectricutilityindustry.Overtime,compliancewith 9
theseregulationscouldbecostlyforcertaincompanies,includingAmerenMissouri,thatoperatecoal-firedpower plants.Significantnewrulesproposedorpromulgated includetheregulationofCO 2emissionsfromexistingpowerplantsthroughtheproposedCleanPowerPlanandfrom newpowerplantsthroughtherevisedNSPS;revised nationalambientairqualitystandardsforozone,fine particulates,SO 2,andNO xemissions;theCSAPR,whichrequiresfurtherreductionsofSO 2emissionsandNO xemissionsfrompowerplants;aregulationgoverning managementofCCRandCCRimpoundments;theMATS, whichrequirereductionofemissionsofmercury,toxic metals,andacidgasesfrompowerplants;revisedNSPSfor particulatematter,SO 2,andNO xemissionsfromnewsources;neweffluentstandardsapplicabletowastewater dischargesfrompowerplantsandnewregulationsunder theCleanWaterActthatcouldrequiresignificantcapital expenditures,suchasmodificationstowaterintake structuresornewcoolingtowersatAmerenMissouri's energycenters.Certainofthesenewandproposed regulations,ifadopted,arelikelytobechallengedthrough litigation,sotheirultimateimplementation,aswellasthe timingofanysuchimplementation,isuncertain.Although manydetailsofthefutureregulationsareunknown,the combinedeffectsofthenewandproposedenvironmental regulationscouldresultinsignificantcapitalexpenditures andincreasedoperatingcostsforAmerenandAmeren Missouri.Compliancewiththeseenvironmentallawsand regulationscouldbeprohibitivelyexpensive,resultinthe closureoralterationoftheoperationofsomeofAmeren Missouri'senergycenters,orrequirecapitalinvestment.
AmerenandAmerenMissouriexpectthesecostswouldbe recoverablethroughrates,subjecttoMoPSCprudence review,butthenatureandtimingofcosts,aswellasthe applicableregulatoryframework,couldresultinregulatory lag.Thesenewandproposedenvironmentalregulations couldalsoimpactthecostof,anddemandfor,powerand naturalgas,whichisacquiredforAmerenMissouri's naturalgascustomersandAmerenIllinois'electricand naturalgascustomers.Foradditionaldiscussionofenvironmentalmatters,includingNOx,SO 2,andmercuryemissionreductionrequirements,proposedreductionstoCO 2 emissions,remediationefforts,CCRmanagementregulations,anda discussionoftheEPA'sallegationsofviolationsoftheClean AirActandMissourilawinconnectionwithprojectsat AmerenMissouri'sRushIslandenergycenter,seeLiquidity andCapitalResourcesinManagement'sDiscussionand AnalysisofFinancialConditionandResultsofOperations underPartII,Item7,andNote15-Commitmentsand ContingenciesunderPartII,Item8,ofthisreport.TRANSMISSIONANDSUPPLYOFELECTRICPOWERAmerenownsanintegratedtransmissionsystemthatiscomprisedofthetransmissionassetsofAmerenMissouri,AmerenIllinois,andATXI.Amerenalsooperates twobalancingauthorityareas:AMMOandAMIL.During 2014,thepeakdemandwas8,199megawattsinAMMOand8,913megawattsinAMIL.TheAmerentransmission systemdirectlyconnectswith15otherbalancingauthority areasfortheexchangeofelectricenergy.AmerenMissouri,AmerenIllinois,andATXIaretransmission-owningmembersofMISO.AmerenMissouri isauthorizedbytheMoPSCtoparticipateinMISOthrough May2018.AmerenMissouriisrequiredtofileastudywith theMoPSCinNovember2017,asithasdoneperiodically sinceitbeganparticipatinginMISOin2003,thatevaluates thecostsandbenefitsofAmerenMissouri'scontinued participationinMISObeyondMay2018.TheAmerenCompaniesaremembersoftheSERC.TheSERCisresponsibleforthebulkelectricpowersystem inallorportionsofMissouri,Illinois,Arkansas,Kentucky, Tennessee,NorthCarolina,SouthCarolina,Georgia, Mississippi,Alabama,Louisiana,Virginia,Florida, Oklahoma,Iowa,andTexas.Ownersandoperators, includingtheAmerenCompanies,ofthebulkelectricpower systemaresubjecttomandatoryreliabilitystandards promulgatedbytheNERCanditsregionalentities,suchas theSERC,whichareallenforcedbytheFERC.AmerenMissouriAmerenMissouri'selectricsupplyisprimarilygeneratedfromitsenergycenters.FactorsthatcouldcauseAmerenMissouritopurchasepowerinclude,amongother things,absenceofsufficientownedgeneration,energy centeroutages,thefulfillmentofrenewableenergyportfolio requirements,thefailureofsupplierstomeettheirpower supplyobligations,extremeweatherconditions,andthe availabilityofpoweratacostlowerthanitsgenerationcost.AmerenMissouricontinuestoevaluateitslonger-termneedsfornewbaseloadcapacity,includingnuclearand peakingelectricgenerationcapacity.Thepotentialneedfor newenergycenterconstructionisdependentonseveralkey factors,includingcontinuationof,andcustomer participationin,energyefficiencyprogramsbeyond2015, loadgrowth,andthepotentialformorestringent environmentalregulationofcoal-firedpowerplants,which couldleadtotheretirementofcurrentbaseloadassetsor alterationsinthemannerinwhichthoseassetsoperate.
Becauseofthesignificanttimerequiredtoplan,acquire permitsfor,andbuildabaseloadenergycenter,Ameren Missouricontinuestostudyalternativesandistakingsteps topreserveoptionstomeetfuturedemand.Stepsinclude evaluatingthepotentialforfurthercustomerenergy efficiencyprogramsandevaluatingpotentialsitesfor natural-gas-firedgeneration.Additionalstepsinclude maintainingoptionsforfuturenucleargenerationand obtaininganoperatinglicenseextensionfortheexisting Callawayenergycenterfrom2024until2044.Ameren Missouriisalsoexploringoptionstoexpandrenewable generationandfurtherdiversifyitsgenerationportfolio.AmerenMissourifileditsintegratedresourceplanwiththeMoPSCinOctober2014.Theintegratedresourceplanis a20-yearplanthatsupportsamorefuel-diverseenergy portfolioinMissouri,includingcoal,solar,wind,naturalgas 10 andnuclearpower.Theplanincludesexpandingrenewablegeneration,retiringcoal-firedgenerationasenergycenters reachtheendoftheirusefullives,andaddingnatural-gas-firedcombinedcyclegeneration.AmerenMissouri continuestostudyalternatives,includingadditional customerenergyefficiencyprograms,thatcouldhelpdefer newenergycenterconstruction.SeealsoOutlookinManagement'sDiscussionandAnalysisofFinancialConditionandResultsofOperations underPartII,Item7,Note2-RateandRegulatoryMatters, Note10-CallawayEnergyCenter,andNote15-CommitmentsandContingenciesunderPartII,Item8,of thisreport.AmerenIllinoisAnyelectricsupplypurchasedbyAmerenIllinoisforitsretailcustomerscomeseitherthroughprocurementprocessesconductedbytheIPAorthroughmarkets operatedbyMISO.TheIPAadministersanRFPprocessthroughwhichAmerenIllinoisprocuresitsexpectedsupply obligation.Thepowerandrelatedprocurementcosts incurredbyAmerenIllinoisarepasseddirectlytoits customersthroughacostrecoverymechanism.UnderIllinoislaw,transmissionanddistributionserviceratesareregulated,whileelectriccustomersare allowedtopurchasepowerfromanalternativeretailelectric supplier.In2014,approximately741,000retailcustomers representing74%ofAmerenIllinois'annualretail kilowatthoursaleshadelectedtopurchasetheirelectricity fromalternativeretailelectricsuppliers.AmerenIllinois continuestocollectdeliverychargesfordistributionand transmissionservicesfromcustomerswhopurchase electricityfromalternativeretailelectricsuppliers.SeeNote2-RateandRegulatoryMatters,Note14-RelatedPartyTransactionsandNote15-Commitments andContingenciesunderPartII,Item8,ofthisreportfor additionalinformationonpowerprocurementinIllinois.POWERGENERATIONThefollowingtablepresentsthesourceofAmeren'sandAmerenMissouri'selectricgeneration,excludingpurchasedpower,fortheyearsendedDecember31,2014,2013,and2012:
CoalNuclearNaturalGas/OilRenewables (a)2014...............................................76%21%(b)3%
2013...............................................7719(b)3 2012...............................................732412(a)RenewablepowergenerationincludesproductionfromAmerenMissouri'shydroelectric,methanegas,andsolarenergycentersbutexcludespurchasedrenewableenergycredits.(b)Lessthan1%oftotalfuelsupply.ThefollowingtablepresentsthecostoffuelsforelectricgenerationfortheyearsendedDecember31,2014,2013,and 2012:CostofFuels(dollarspermmbtu)201420132012 Coal (a).......................................................................$2.151$2.050$1.925 Nuclear......................................................................
0.9180.9420.964Naturalgas (b)..................................................................
11.2267.9074.517Weightedaverage-allfuels (c)....................................................$1.936$1.874$1.743(a)Representsthecostofcoalandthecostsfortransportation,whichincludehedgesforrailroaddieselfuelsurcharges.(b)Representsthecostofnaturalgasandfixedandvariablecostsfortransportation,storage,balancing,andfuellossesfordeliverytotheenergy center.(c)Representsallcosts,includingtransportation,forfuelsusedinourenergycenters,includingcoal,nuclear,naturalgas,methanegas,oil,andpropane.Methanegas,oil,andpropanearenotindividuallylistedinthistablebecausetheiruseisminimal.
CoalAmerenMissourihasanongoingneedforcoalforgeneration,soitpursuesaprice-hedgingstrategyconsistentwiththisrequirement.AmerenMissourihas agreementsinplacetopurchasecoalandtotransportitto energycenters.CoalsupplyagreementsforAmeren Missouriexpireattheendof2017.Coaltransport agreementsforAmerenMissouriexpireattheendof2019.
AmerenMissourihascoaltransportagreementswithUnion PacificRailroadandBurlingtonNorthernSantaFeRailway.
AsofDecember31,2014,AmerenMissourihadprice-hedged100%ofitsexpectedcoalsupplyandcoal transportationrequirementsforgenerationin2015.Ameren Missouriburned20milliontonsofcoalin2014.About98%ofAmerenMissouri'scoalispurchasedfromthePowderRiverBasininWyoming.Theremaining coalistypicallypurchasedfromtheIllinoisBasin.Inventory maybeadjustedbecauseofgenerationlevelsor uncertaintiesofsupplyduetopotentialworkstoppages, delaysincoaldeliveries,equipmentbreakdowns,andother factors.DeliveriesfromthePowderRiverBasinhave 11 occasionallybeenrestrictedbecauseofrailcongestionandmaintenance,derailments,andweather.Asof December31,2014,coalinventoriesforAmerenMissouri werebelowtargetedlevelsduetodeliverydelays.
DisruptionsincoaldeliveriescouldcauseAmerenMissouri topursueastrategythatcouldincludereducingsalesof powerduringlow-marginperiods,buyinghigher-costfuels togeneraterequiredelectricity,andpurchasingpowerfrom othersources.
NuclearTheproductionofnuclearfuelinvolvestheminingandmillingofuraniumoretoproduceuraniumconcentrates,theconversionofuraniumconcentratestouranium hexafluoridegas,theenrichmentofthatgas,theconversion oftheenricheduraniumhexafluoridegasintouranium dioxidefuelpelletsandthefabricationintousablefuel assemblies.AmerenMissourihasenteredintouranium, uraniumconversion,uraniumenrichment,andfabrication contractstoprocurethefuelsupplyforitsCallawaynuclear energycenter.TheCallawayenergycenterrequiresrefuelingat18-monthintervals.Thelastrefuelingwascompletedin November2014.Thenextrefuelingisscheduledforspring 2016.Thereisnorefuelingscheduledfor2015and2018.
AmerenMissouricurrentlyhasagreementsorinventoriesto price-hedgeapproximately97%,71%,and60%of Callaway's2016,2017,and2019refuelingrequirements, respectively.AmerenMissourihasuranium(concentrate andhexafluoride)inventoriesandsupplycontracts sufficienttomeetallofitsuraniumandconversion requirementsthroughatleast2017.AmerenMissourihas enricheduraniuminventoriesandenrichmentsupply contractssufficienttosatisfyenrichmentrequirements throughatleast2019andfuelfabricationservicecontracts throughatleast2019.AmerenMissouriexpectstoenter intoadditionalcontractstopurchasenuclearfuel.The nuclearfuelmarketsarecompetitive,andpricescanbe volatile;however,AmerenMissouridoesnotanticipateany significantproblemsinmeetingitsfuturesupply
requirements.NaturalGasSupplyforGenerationTomaintaindeliveriestonatural-gas-firedenergycentersthroughouttheyear,especiallyduringthesummerpeakdemand,AmerenMissouri'sportfolioofnaturalgas supplyresourcesincludesfirmtransportationcapacityand firmno-noticestoragecapacityleasedfrominterstate pipelines.AmerenMissouriprimarilyusestheinterstate pipelinesystemsofPanhandleEasternPipeLineCompany, TrunklineGasCompany,NaturalGasPipelineCompanyof America,andMississippiRiverTransmissionCorporationto transportnaturalgastoenergycenters.Inadditionto physicaltransactions,AmerenMissouriusesfinancial instruments,includingsomeintheNYMEXfuturesmarket andsomeintheOTCfinancialmarkets,tohedgetheprice paidfornaturalgas.AmerenMissouri'snaturalgasprocurementstrategyisdesignedtoensurereliableandimmediatedeliveryof naturalgastoitsenergycenters.Thisstrategyis accomplishedbyoptimizingtransportationandstorage optionsandbyminimizingcostandpriceriskthrough varioussupplyandprice-hedgingagreementsthatallow accesstomultiplegaspools,supplybasins,andstorage services.AsofDecember31,2014,AmerenMissourihad price-hedgedabout3%ofitsexpectednaturalgassupply requirementsforgenerationin2015.RenewableEnergyIllinoisandMissourihaveenactedlawsrequiringelectricutilitiestoincluderenewableenergyresourcesintheirportfolios.Illinoisrequiredrenewableenergy resourcestoequalorexceed2%ofthetotalelectricitythat AmerenIllinoissuppliedtoitseligibleretailcustomersasof June1,2008,withthatpercentageincreasingto10%by June1,2015,andto25%byJune1,2025.Forthe2014 planyear,AmerenIllinoismetitsrequirementthat9%ofits totalelectricityforeligibleretailcustomersbeprocured fromrenewableenergyresources.Basedoncurrent forecasts,AmerenIllinoishascommittedtoprocure sufficientrenewableenergycreditsundertheIPA-administeredprocurementprocesstomeettherenewable energyportfoliorequirementthroughatleastMay2017.
AmerenIllinoishasenteredintoagreementsthrough2032 withrenewableenergysupplierstoobtainrenewableenergy credits.Approximately65%ofthe2015planyear renewableenergyrequirementisexpectedtobemet throughtheseagreements.Theremainingrequirementwill bemetthroughIPAprocurements,whichresultedin contractsthathavetermsthroughDecember2017.InMissouri,utilitiesarerequiredtopurchaseorgenerateelectricityequaltoatleast2%ofnativeloadsales fromrenewablesources,withthatpercentageincreasingto atleast15%by2021,subjecttoa1%annuallimiton customerrateimpacts.Atleast2%ofeachrenewable energyportfoliorequirementmustbederivedfromsolar energy.In2014,AmerenMissourimetitsrequirementto purchaseorgenerateatleast5%ofitsnativeloadsales fromrenewableenergyresources.AmerenMissouriexpects tosatisfythenonsolarrequirementinto2018withits Keokukenergycenter,itsMarylandHeightsenergycenter, andwitha102-megawattpowerpurchaseagreement throughJune2024withawindfarmoperatorinIowa.The MarylandHeightsenergycentergenerateselectricityby burningmethanegascollectedfromalandfill.Ameren Missouriismeetingthesolarenergyrequirementthrough thepurchaseofsolar-generatedrenewableenergycredits fromcustomer-installedsystemsandgenerationfromits O'Fallonenergycenter.UnderthesameMissouristatutethatrequiresutilitiestopurchaseorgenerateelectricityfromrenewablesources, AmerenMissouriisrequiredtohavearebateprogramto provideanincentiveforcustomerstoinstallsolar generationontheirpremises.Inaccordancewiththestatute anda2013MoPSCorder,AmerenMissouriisrequiredto 12 provide$92millionofsolarrebatesby2020,whichwassubstantiallycompletedbyDecember31,2014.Also includedinits2013order,theMoPSCauthorizedAmeren MissouritoemployatrackertoallowAmerenMissourito recordthecostsitincurredunderitssolarrebateprogram asaregulatoryasset.AmerenMissouriexpectstorecover thecostsoftheserebates,alongwiththeestimated
$9millioncarryingcostoftheregulatoryasset,overa three-yearperiodbeginningwiththeeffectivedateofrates initsJuly2014electricratecase.EnergyEfficiencyAmerenMissouriandAmerenIllinoishaveimplementedenergyefficiencyprogramstoeducateandhelptheircustomersbecomemoreefficientusersofenergy.In Missouri,theMEEIAestablishedaregulatoryframeworkthat, amongotherthings,allowselectricutilitiestorecovercosts relatedtoMoPSC-approvedcustomerenergyefficiency programs.ThelawrequirestheMoPSCtoensurethata utility'sfinancialincentivesarealignedtohelpcustomersuse energymoreefficiently,toprovidetimelycostrecovery,and toprovideearningsopportunitiesassociatedwithcost-effectiveenergyefficiencyprograms.Missouridoesnothave alawmandatingenergyefficiencystandards.TheMoPSC'sDecember2012electricrateorderapprovedAmerenMissouri'simplementationoftheMEEIA megawatthoursavingstargets,customerenergyefficiency programs,andassociatedcostrecoverymechanismsand incentiveawards.AmerenMissouriinvested$76millionin theseprogramsthrough2014andexpectstoinvestan additional$71millionin2015.AMEEIAriderallows AmerenMissouritocollectfromorrefundtocustomers anyannualdifferenceintheactualamountsincurredand theamountscollectedfromcustomersfortheMEEIA programcostsanditslostrevenues.Additionally,theMEEIAprovidesforincentiveawardsthatwouldallowAmerenMissouritoearnadditional revenuesbyachievingcertainenergyefficiencygoals.
Underitscurrentenergyefficiencyplan,whichiseffective for2013through2015,AmerenMissouricanearn approximately$19millionif100%ofitsenergyefficiency goalsareachievedduringthattimeperiod,withthe potentialtoearnmoreifenergysavingsexceedthosegoals.
AmerenMissourimustachieveatleast70%ofitsenergy efficiencygoalsbeforeitcanearnanyincentiveaward.The recoveryoftheincentiveawardfromcustomers,ifthe energyefficiencygoalsareachieved,isexpectedin2017 throughtheabove-mentionedrider.InDecember2014,AmerenMissourifiledanenergyefficiencyplanwiththeMoPSCundertheMEEIA.Thisfiling proposedathree-yearplanthatincludesaportfolioof customerenergyefficiencyprogramsalongwithacost recoverymechanism.Iftheplanisapproved,beginningin January2016,AmerenMissouriintendstoinvest
$135millionoverthreeyearsintheproposedcustomer energyefficiencyprograms.AmerenMissourirequested continueduseofaMEEIAriderthatallowsittocollectfrom orrefundtocustomersanydifferenceintheactualamountsincurredandtheamountscollectedfromcustomersforthe MEEIAprogramcostsanditslostrevenues.Inaddition, AmerenMissourirequestedincentivestoearnadditional revenuesbyachievingcertainenergyefficiencygoals, includingapproximately$25millionif100%ofitsenergy efficiencygoalsareachievedduringthethree-yearperiod.
SeeNote2-RateandRegulatoryMattersunderPartII, Item8,ofthisreportforadditionalinformation.IllinoishasenactedalawrequiringAmerenIllinoistooffercustomerenergyefficiencyprograms.Thelawalso allowsrecoverymechanismsoftheprograms'costs.The ICChasissuedordersapprovingAmerenIllinois'electric andnaturalgasenergyefficiencyplansaswellascost recoverymechanismsbywhichprogramcostscanbe recoveredfromcustomers.Additionally,aspartofitsIEIMA upgrades,AmerenIllinoisexpectstoinvest$360millionin smartgridinfrastructure,includingsmartmetersthat enablecustomerstoimproveenergyefficiency.Ameren Illinoisbegantheinstallationofsmartmetersin2014.NATURALGASSUPPLYFORDISTRIBUTIONAmerenMissouriandAmerenIllinoisareresponsibleforthepurchaseanddeliveryofnaturalgastotheirutilitycustomers.AmerenMissouriandAmerenIllinoiseach developandmanageaportfolioofnaturalgassupply resources.Theseresourcesincludefirmgassupplyunder termagreementswithproducers,interstateandintrastate firmtransportationcapacity,firmstoragecapacityleased frominterstatepipelines,andon-systemstoragefacilitiesto maintainnaturalgasdeliveriestocustomersthroughoutthe yearandespeciallyduringpeakdemandperiods.Ameren MissouriandAmerenIllinoisprimarilyusePanhandle EasternPipeLineCompany,TrunklineGasCompany, NaturalGasPipelineCompanyofAmerica,MississippiRiver TransmissionCorporation,NorthernBorderPipeline Company,andTexasEasternTransmissionCorporation interstatepipelinesystemstotransportnaturalgastotheir systems.Inadditiontotransactionsrequiringphysical delivery,financialinstruments,includingthoseenteredinto intheNYMEXfuturesmarketandintheOTCfinancial markets,areusedtohedgethepricepaidfornaturalgas.
Naturalgaspurchasecostsarepassedontocustomersof AmerenMissouriandAmerenIllinoisunderPGAclauses, subjecttoprudencereviewsbytheMoPSCandtheICC.As ofDecember31,2014,AmerenMissourihadprice-hedged 80%andAmerenIllinoishadprice-hedged78%oftheir expected2015naturalgassupplyrequirements.Foradditionalinformationonourfuelandpurchasedpowersupply,seeResultsofOperations,Liquidityand CapitalResourcesandEffectsofInflationandChanging PricesinManagement'sDiscussionandAnalysisof FinancialConditionandResultsofOperationsunderPartII, Item7,ofthisreport.AlsoseeNote1-Summaryof SignificantAccountingPolicies,Note7-Derivative FinancialInstruments,Note10-CallawayEnergyCenter, Note14-RelatedPartyTransactions,andNote15-CommitmentsandContingenciesunderPartII,Item8of thisreport.
13 INDUSTRYISSUESWearefacingissuescommontotheelectricandnaturalgasutilityindustry.Theseissuesinclude:
political,regulatory,andcustomerresistancetohigher rates;thepotentialforchangesinlaws,regulations,and policiesatthestateandfederallevels; taxlawchangesthatacceleratedepreciation deductions,whichreducecurrenttaxpaymentsbut alsoresultinratebasereductionsandlimittheability toclaimotherdeductionsandusecarryforwardtax
benefits;cybersecurityrisks,includinglossofoperational controlofenergycentersandelectricandnaturalgas transmissionanddistributionsystemsand/orlossof data,suchasutilitycustomerdataandaccount
information; thepotentialformoreintensecompetitionin generation,supply,anddistribution,includingnew
technologies; pressureoncustomergrowthandusageinlightof economicconditionsandenergyefficiencyinitiatives; changesinthestructureoftheindustryasaresultof changesinfederalandstatelaws,includingthe formationandgrowthofindependenttransmission
entities;pressuretoreducetheallowedreturnoncommon equityonFERC-regulatedelectrictransmissionassets; theavailabilityoffuelandfluctuationsinfuelprices; theavailabilityofqualifiedlaborandmaterial,andrising
costs;theavailabilityofaskilledworkforce,including retainingthespecializedskillsofthosewhoarenearing
retirement; regulatorylag; theinfluenceofmacroeconomicfactors,suchasyields onUnitedStatesTreasurysecuritiesandallowedrates ofreturnonequityprovidedbyregulators; higherlevelsofinfrastructureinvestmentscouldresult innegativeordecreasedfreecashflows,definedas cashflowsfromoperatingactivitieslesscashflows frominvestingactivitiesanddividendspaid; publicconcernaboutthesitingofnewfacilities; complexnewandproposedenvironmentallaws, regulationsandrequirements,includingairandwater qualitystandards,mercuryemissionsstandards,CCR managementrequirements,andgreenhousegas
limitations; publicconcernaboutthepotentialimpactstothe environmentfromthecombustionoffossilfuels; aginginfrastructureandtheneedtoconstructnew powergeneration,transmissionanddistribution facilities,whichhavelongtimeframesforcompletion, withlittlelong-termabilitytopredictpowerand commoditypricesandregulatoryrequirements; legislationorproposalsforprogramstoencourageor mandateenergyefficiencyandrenewablesourcesof power,suchassolar,andthemacroeconomicdebate overwhoshouldpayforthoseprograms; publicconcernaboutnucleargenerationand decommissioningandthedisposalofnuclearwaste;
andconsolidationofelectricandnaturalgasutility
companies.Wearemonitoringtheseissues.Exceptasotherwisenotedinthisreport,weareunabletopredictwhatimpact,if any,theseissueswillhaveonourresultsofoperations, financialposition,orliquidity.Foradditionalinformation, seeRiskFactorsunderPartI,Item1A,andOutlookin Management'sDiscussionandAnalysisofFinancial ConditionandResultsofOperationsunderPartII,Item7, andNote2-RateandRegulatoryMattersandNote15-CommitmentsandContingenciesunderPartII,Item8,of thisreport.
14 OPERATINGSTATISTICSThefollowingtablespresentkeyelectricandnaturalgasoperatingstatisticsforAmerenforthepastthreeyears:ElectricOperatingStatistics-YearEndedDecember31,201420132012ElectricSales-kilowatthours(inmillions):AmerenMissouri:
Residential
....................................................................
13,64913,56213,385 Commercial
...................................................................
14,64914,63414,575 Industrial
.....................................................................
8,6008,7098,660 Off-system
....................................................................
6,1706,1287,293 Other........................................................................
124 125 126AmerenMissouritotal
.........................................................
43,19243,15844,039AmerenIllinois:
ResidentialPowersupplyanddeliveryservice
...............................................
4,6625,4749,507Deliveryserviceonly
..........................................................
7,2226,3102,103 CommercialPowersupplyanddeliveryservice
...............................................
2,5352,6062,985Deliveryserviceonly
..........................................................
9,6439,5419,175 IndustrialPowersupplyanddeliveryservice
...............................................
1,7411,6671,595Deliveryserviceonly
..........................................................
10,57610,86111,753 Other........................................................................
518 522 523AmerenIllinoistotal
..........................................................
36,89736,98137,641Eliminateaffiliatesales
............................................................
(67)(82)-Amerentotal
................................................................
80,02280,05781,680ElectricOperatingRevenues(inmillions):
AmerenMissouri:
Residential
....................................................................$1,417$1,428$1,297 Commercial
...................................................................
1,2031,2161,088 Industrial
.....................................................................
475 491 435 Off-system
....................................................................
173 183 208 Other........................................................................
120 61 104AmerenMissouritotal
.........................................................$3,388$3,379$3,132AmerenIllinois:
ResidentialPowersupplyanddeliveryservice
...............................................$468$501$961Deliveryserviceonly
..........................................................
308 282 90 CommercialPowersupplyanddeliveryservice
...............................................
233 215 254Deliveryserviceonly
..........................................................
185 184 177 IndustrialPowersupplyanddeliveryservice
...............................................
90 70 57Deliveryserviceonly
..........................................................
42 44 46 Other........................................................................
196 165 154AmerenIllinoistotal
..........................................................$1,522$1,461$1,739 ATXI:Transmissionservices
...........................................................$33$19$9Eliminateaffiliaterevenues
.........................................................
(30)(27)(23)Amerentotal
................................................................$4,913$4,832$4,857 15 ElectricOperatingStatistics-YearEndedDecember31,201420132012ElectricGeneration-AmerenMissouri-kilowatthours(inmillions)
.........................
43,47443,21344,658Pricepertonofdeliveredcoal(average)-AmerenMissouri
...............................$37.36$36.19$34.21SourceofAmerenMissourienergysupply:
Coal.........................................................................
73.5%74.1%70.6%
Nuclear......................................................................
20.618.623.3 Hydroelectric
..................................................................
2.22.92.1Naturalgas
...................................................................
0.20.41.2Methanegas
..................................................................
0.10.10.1Purchased-Wind
..............................................................
0.80.70.7Purchased-Other
..............................................................
2.63.22.0 100.0%100.0%100.0%GasOperatingStatistics-YearEndedDecember31,201420132012NaturalGasSales-dekatherms(inmillions):AmerenMissouri:
Residential
.................................................................
8 86 Commercial
.................................................................
4 43 Industrial
...................................................................
1 11 Transport..................................................................
7 66AmerenMissouritotal
.......................................................
201916AmerenIllinois:
Residential
.................................................................
666249 Commercial
.................................................................
232117 Industrial
...................................................................
3 65 Transport..................................................................
918786AmerenIllinoistotal
........................................................
183176157Amerentotal
..............................................................
203195173NaturalGasOperatingRevenues(inmillions):
AmerenMissouri:
Residential
.................................................................$102$102$85 Commercial
.................................................................
404236 Industrial
...................................................................
7 88Transportandother
..........................................................
15910AmerenMissouritotal
.......................................................$164$161$139AmerenIllinois:
Residential
.................................................................$675$611$547 Commercial
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208185172 Industrial
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232624Transportandother
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702543AmerenIllinoistotal
........................................................$976$847$786Eliminateaffiliaterevenues
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-(2)(1)Amerentotal
..............................................................$1,140$1,006$924AVAILABLEINFORMATIONTheAmerenCompaniesmakeavailablefreeofchargethroughAmeren'swebsite(www.ameren.com)theirannualreportsonForm10-K,quarterlyreportsonForm10-Q, currentreportsonForm8-K,eXtensibleBusinessReporting Language(XBRL)documents,andanyamendmentsto thosereportsfiledwithorfurnishedtopursuanttoSections 13(a)or15(d)oftheExchangeActassoonasreasonably possibleaftersuchreportsareelectronicallyfiledwith,or furnishedto,theSEC.Thesedocumentsarealsoavailable throughanInternetwebsitemaintainedbytheSEC (www.sec.gov).Amerenalsousesitswebsiteasachannel ofdistributionformaterialinformationabouttheAmerenCompanies.Financialandothermaterialinformation regardingtheAmerenCompaniesisroutinelypostedtoand accessibleatAmeren'swebsite.TheAmerenCompaniesalsomakeavailablefreeofchargethroughAmeren'swebsitethechartersofAmeren's boardofdirectors'auditandriskcommittee,human resourcescommittee,nominatingandcorporate governancecommittee,financecommittee,andnuclear oversightandenvironmentalcommittee;thecorporate governanceguidelines;apolicyregardingcommunications totheboardofdirectors;apolicyandprocedureswith respecttorelated-persontransactions;acodeofethicsfor principalexecutiveandseniorfinancialofficers;acodeof 16 businessconductapplicabletoalldirectors,officersandemployees;andadirectornominationpolicythatappliesto theAmerenCompanies.TheinformationonAmeren's website,oranyotherwebsitereferencedinthisreport,is notincorporatedbyreferenceintothisreport.ITEM1A.RISKFACTORSInvestorsshouldreviewcarefullythefollowingmaterialriskfactorsandtheotherinformationcontainedinthisreport.TherisksthattheAmerenCompaniesfacearenot limitedtothoseinthissection.Theremaybefurtherrisks anduncertaintiesthatarenotpresentlyknownorthatare notcurrentlybelievedtobematerialthatmayadversely affecttheresultsofoperations,financialposition,and liquidityoftheAmerenCompanies.REGULATORYANDLEGISLATIVERISKSWearesubjecttoextensiveregulationofourbusinesses,whichcouldadverselyaffectourresultsofoperations,financialposition,andliquidity.Wearesubjecttoextensivefederal,state,andlocalregulation.Thisextensiveregulatoryframework,somebut notallofwhichismorespecificallyidentifiedinthe followingriskfactors,regulates,amongothermatters,the electricandnaturalgasutilityindustries;rateandcost structureofutilities;operationofnuclearenergycenters; constructionandoperationofgeneration,transmission,and distributionfacilities;acquisition,disposal,depreciationand amortizationofassetsandfacilities;transmissionreliability; andpresentorprospectivewholesaleandretail competition.Intheplanningandmanagementofour operations,wemustaddresstheeffectsofexistingand proposedlawsandregulationsandpotentialchangesinthe regulatoryframework,includinginitiativesbyfederaland statelegislatures,RTOs,utilityregulators,andtaxing authorities.Significantchangesinthenatureofthe regulationofourbusinessescouldrequirechangestoour businessplanningandmanagementofourbusinessesand couldadverselyaffectourresultsofoperations,financial position,andliquidity.Failuretoobtainadequateratesor regulatoryapprovalsinatimelymanner;failuretoobtain necessarylicensesorpermitsfromregulatoryauthorities; theimpactofnewormodifiedlaws,regulations,standards, interpretations,orotherlegalrequirements;orincreased compliancecostscouldadverselyaffectourresultsof operations,financialposition,andliquidity.Theelectricandnaturalgasratesthatweareallowedtochargearedeterminedthroughregulatory proceedings,whicharesubjecttointerventionand appealandalsotolegislativeactions,whicharelargely outsideofourcontrol.Anyeventsthatpreventusfrom recoveringourcostsorfromearningadequatereturnson ourinvestmentscouldadverselyaffectourresultsof operations,financialposition,andliquidity.Theratesthatweareallowedtochargeforourutilityservicessignificantlyinfluenceourresultsofoperations,financialposition,andliquidity.Theelectricandnaturalgas utilityindustriesareextensivelyregulated.Theutilityrates chargedtoourcustomersaredeterminedbygovernmental entities,includingtheMoPSC,theICC,andtheFERC.Many factorsinfluencedecisionsbytheseentities,includingthe costofprovidingservice,theprudencyofexpenditures,the qualityofservice,regulatorystaffknowledgeand experience,customerintervention,economicconditions, publicpolicy,aswellassocialandpoliticalviews.Decisions madebythesegovernmentalentitiesregardingratesare largelyoutsideofourcontrol.Weareexposedtoregulatory lagtovaryingdegreesbyjurisdiction,which,ifunmitigated, couldhaveamaterialadverseeffectonourresultsof operations,financialposition,andliquidity.Rateordersare alsosubjecttoappeal,whichcreatesadditionaluncertainty astotherateswewillultimatelybeallowedtochargefor ourservices.Fromtimetotime,ourregulatorswillapprove trackers,riders,orothermechanismsthatallowelectricor naturalgasratestobeadjustedwithoutatraditionalrate proceeding.Thesemechanismsarenotpermanentand couldbechangedorterminated.AmerenMissouri'selectricandnaturalgasutilityratesandAmerenIllinois'naturalgasutilityratesaretypically establishedinregulatoryproceedingsthattakeupto 11monthstocomplete.Ratesestablishedinthose proceedingsforAmerenMissouriareprimarilybasedon historicalcostsandrevenues.Naturalgasratesestablished inthoseproceedingsforAmerenIllinoismaybebasedon historicalorestimatedfuturecostsandrevenues.Thus,the ratesthatautilityisallowedtochargemaynotmatchits costsatanygiventime.Ratesincludeanallowedrateofreturnoninvestmentsdeterminedbytheregulator.Althoughrateregulationis premisedonprovidinganopportunitytoearnareasonable rateofreturnoninvestedcapital,therecanbenoassurance thattheregulatorwilldeterminethatourcostswere prudentlyincurredorthattheregulatoryprocesswillresult inratesthatwillproducefullrecoveryofsuchcostsor provideforanadequatereturnonthoseinvestments.Inyearswhencapitalinvestmentsandoperationscostsriseorcustomerusagedeclines,wemaynotbeable toearntheallowedreturnestablishedbytheregulator.This couldresultinthedeferraloreliminationofplannedcapital investments,whichcouldreducetheratebaseinvestments onwhichweearnarateofreturn.Additionally,increasing ratescouldresultinregulatoryandlegislativeactions,as wellascompetitiveandpoliticalpressures,allofwhich couldadverselyaffectourresultsofoperations,financial position,andliquidity.Asaresultofitsparticipationintheperformance-basedformularatemakingprocessestablishedpursuant totheIEIMA,AmerenIllinois'returnonequityforits electricdistributionbusinessisdirectlycorrelatedto yieldsonUnitedStatesTreasurybonds.Additionally, AmerenIllinoisisrequiredtoachieveperformance objectives,capitalspendinglevels,andjobcreation targets.Failuretomeettheserequirementscould 17 adverselyaffectAmeren'sandAmerenIllinois'resultsofoperations,financialposition,andliquidity.AmerenIllinoisisparticipatingintheperformance-basedformularatemakingprocessestablishedpursuantto theIEIMAforitselectricdistributionbusiness.TheICC annuallyreviewsAmerenIllinois'performance-basedrate filingsundertheIEIMAforreasonablenessandprudency.If theICCweretoconcludethatAmerenIllinois'incurred costswerenotprudentlyincurred,theICCwoulddisallow recoveryofsuchcosts.Thereturnonequitycomponentoftheformularateisequaltotheaverageforthecalendaryearofthemonthly yieldsof30-yearUnitedStatesTreasurybondsplus 580basispoints.Therefore,AmerenIllinois'annualreturn onequityundertheformularatemakingprocessforits electricdistributionbusinessisdirectlycorrelatedtoyields onsuchbonds,whichareoutsideofAmerenIllinois' control.A50basispointchangeintheaveragemonthly yieldsofthe30-yearUnitedStatesTreasurybondswould resultinanestimated$6millionchangeinAmeren'sand AmerenIllinois'2015netincome.AmerenIllinoisisalsosubjecttoperformancestandards.Failuretoachievethestandardswouldresultina reductioninthecompany'sallowedreturnonequity calculatedundertheformula.TheIEIMAprovidesforreturn onequitypenaltiestotaling30basispointsin2015, 34basispointsineachyearfrom2016through2018,and 38basispointsineachyearfrom2019through2022ifthe performancestandardsarenotmet.Between2012and2021,AmerenIllinoisisrequiredtoinvest$625millionincapitalprojectsincrementaltoits averageelectricdeliverycapitalprojectsinvestmentsof
$228millionforcalendaryears2008through2010,inorder tomodernizeitsdistributionsystem.AmerenIllinoisis subjecttomonetarypenaltiesif450additionaljobsarenot createdinIllinoisduringthepeakprogramyear.Unlessitisextended,theIEIMAformularatemakingprocesswillexpirein2017.Whentheperformance-based formularateprocessexpires,AmerenIllinoiswouldbe requiredtoestablishfutureratesthroughatraditionalrate proceedingwiththeICC,whichmightnotresultinrates thatproduceafullortimelyrecoveryofcostsorprovidefor anadequatereturnoninvestments.Wearesubjecttovariousenvironmentallawsandregulations.Significantcapitalexpendituresarerequired toachieveandmaintaincompliancewiththeselawsand regulations.Failuretocomplywiththeselawsand regulationscouldresultinclosureoffacilities, alterationstothemannerinwhichthesefacilities operate,increasedoperatingcosts,adverseimpactsto ourresultsofoperations,financialposition,andliquidity, orexposuretofinesandliabilities.Wearesubjecttovariousenvironmentallawsandregulationsenforcedbyfederal,state,andlocalauthorities.
Fromthebeginningphasesofsitinganddevelopmenttothe operationofexistingornewelectricgeneration,transmissionanddistributionfacilitiesandnaturalgas storage,transmissionanddistributionfacilities,our activitiesinvolvecompliancewithdiverseenvironmental lawsandregulations.Theselawsandregulationsaddress emissions;dischargestowater,waterusage,impactstoair, land,andwater,andchemicalandwastehandling.Complex andlengthyprocessesarerequiredtoobtainandrenew approvals,permits,orlicensesfornew,existing,or modifiedfacilities.Additionally,theuseandhandlingof variouschemicalsorhazardousmaterialsrequirerelease preventionplansandemergencyresponseprocedures.Wearealsosubjecttoliabilityunderenvironmentallawsthataddresstheremediationofenvironmental contaminationofpropertycurrentlyorformerlyownedby usorbyourpredecessors,aswellasproperty contaminatedbyhazardoussubstancesthatwegenerated.
SuchpropertiesincludeMGPsitesandthird-partysites, suchaslandfills.Additionally,privateindividualsmayseek toenforceenvironmentallawsandregulationsagainstus.
Theycouldallegeinjuryfromexposuretohazardous materials,couldseektocompelremediationof environmentalcontamination,orcouldrecoverdamages resultingfromthatcontamination.TheEPAisdevelopingandimplementingenvironmentalregulationsthatwillhaveasignificantimpact ontheelectricutilityindustry.Overtime,compliancewith theseregulationscouldbecostlyforcertaincompanies, includingAmerenMissouri,thatoperatecoal-firedpower plants.Certainofthesenewandproposedregulations,if adopted,arelikelytobechallengedthroughlitigation,so theirultimateimplementation,aswellasthetimingofany suchimplementation,isuncertain.Amerenisalsosubjecttorisksinconnectionwithchangingorconflictinginterpretationsofexistinglawsand regulations.TheEPAisengagedinanenforcementinitiative todeterminewhethercoal-firedpowerplantsfailedto complywiththerequirementsoftheNSRandNSPS provisionsundertheCleanAirActwhenthepowerplants implementedmodifications.InJanuary2011,the DepartmentofJustice,onbehalfoftheEPA,fileda complaintagainstAmerenMissouriintheUnitedStates DistrictCourtfortheEasternDistrictofMissouri.An outcomeinthismatteradversetoAmerenMissouricould requiresubstantialcapitalexpendituresandthepaymentof substantialpenalties,neitherofwhichcanbedeterminedat thistime.Suchexpenditurescouldaffectunitretirement andreplacementdecisions.InJanuary2014,theEPApublishedproposedregulationsthatwouldsetrevisedCO 2emissionsstandardsfornewpowerplants.Theproposedstandardswould establishseparateemissionslimitsfornewnatural-gas-firedplantsandnewcoal-firedplants.InJune2014,the EPAproposedtheCleanPowerPlan,whichsetsforthCO 2emissionsstandardsthatwouldbeapplicabletoexisting powerplants.TheproposedCleanPowerPlanwould requireeachstatetodevelopplanstoachieveCO 2 emissionstandardsthattheEPAcalculatedforeachstate.TheEPA believesthattheCleanPowerPlanwouldachievea30%
18 reductioninthenation'sexistingpowerplantCO 2emissionsfrom2005levelsby2030.TheproposedrulealsohasinterimgoalsofaggressivelyreducingCO 2emissionsby2020.TheEPAexpectstheproposedrulewill befinalizedin2015.AmerenMissouri'sintegratedresource planisprojectedtoachievethecarbonemissions reductionsproposedintheEPA'sCleanPowerPlanby 2035,ratherthantheEPA'sfinaltargetdateof2030orits interimtargetdatesbeginningin2020.AmerenMissouri continuestoevaluateitspotentialcomplianceplansforthe proposedCleanPowerPlan.Preliminarystudiessuggest thatiftheproposedCleanPowerPlanweretobefinalizedin itscurrentform,AmerenMissourimayneedtoincurnew oracceleratedcapitalexpendituresandincreasedfuelcosts inordertoachievecompliance.Asproposed,theClean PowerPlanwouldrequirestates,includingMissouriand Illinois,tosubmitcomplianceplansasearlyas2016.The states'complianceplansmightrequireAmerenMissourito constructnatural-gas-firedcombinedcyclegenerationand renewablegeneration,atacurrentlyestimatedcostof approximately$2billionby2020,thatAmerenMissouri believeswouldotherwisenotbenecessarytomeetthe energyneedsofitscustomers.Additionally,Missouri's implementationoftheproposedrules,ifadopted,could resultintheclosureoralterationoftheoperationofsome ofAmerenMissouri'scoalandnaturalgas-firedenergy centers,whichcouldresultinincreasedoperatingcostsor impairmentofassets.TheCleanPowerPlanmaynegatively impactelectricsystemreliabilityforAmerenMissouriand AmerenIllinois.AmerenandAmerenMissourihaveincurredandexpecttoincursignificantcostsrelatedtoenvironmental complianceandsiteremediation.Neworrevised environmentalregulations,enforcementinitiatives,or legislationcouldresultinasignificantincreaseincapital expendituresandoperatingcosts,decreasedrevenues, increasedfinancingrequirements,penaltiesorfines,or reducedoperationsofsomeofAmerenMissouri'scoal-fired energycenters,which,inturn,couldleadtoincreased liquidityneedsandhigherfinancingcosts.Actionsrequired toensurethatourfacilitiesandoperationsarein compliancewithenvironmentallawsandregulationscould beprohibitivelyexpensiveifthecostsarenotrecovered throughrates.EnvironmentallawscouldrequireAmeren Missouritocloseortoaltersignificantlytheoperationofits energycenters.Moreover,ifAmerenMissourirequests recoveryofthesecapitalexpendituresandcoststhrough rates,theMoPSCcoulddenyrecoveryofalloraportionof thesecosts,preventtimelyrecovery,ormakechangesto theregulatoryframeworkinanefforttominimizerate volatilityandcustomerrateincreases.Capitalexpenditures andcoststocomplywithfuturelegislationorregulations thatarenotrecoverablethroughratesmightresultin AmerenMissouriclosingcoal-firedenergycentersearlier thanplanned,whichwouldleadtoanimpairmentofassets andreducedrevenues.Weareunabletopredicttheultimate impactofthesemattersonourresultsofoperations, financialposition,andliquidity.Governmentchallengestoourtaxpositions,aswellastaxlawchangesandtheinherentdifficultyin quantifyingpotentialtaxeffectsofbusinessdecisions, couldadverselyaffectourresultsofoperationsand
liquidity.Wearerequiredtomakejudgmentsinordertoestimatetaxobligations.Thesejudgmentsincludereserves forpotentialadverseoutcomesfortaxpositionsthatmaybe challengedbytaxauthorities.Theobligations,whichinclude incometaxesandtaxesotherthanincometaxes,involve complexmattersthatultimatelycouldbelitigated.Wealso estimateourabilitytousetaxbenefits,includingthosein theformofcarryforwardsandtaxcreditsthatarerecorded asdeferredtaxassetsonourbalancesheets.A disallowanceofthesetaxbenefitscouldhaveamaterial adverseimpactonourresultsofoperation,financial position,andliquidity.Customers',legislators'andregulators'opinionsofusareaffectedbymanyfactors,includingsystem reliability,implementationofourinvestmentplans, protectionofcustomerinformation,rates,andmedia coverage.Totheextentthatcustomers,legislatorsor regulatorsdevelopanegativeopinionofus,ourresultsof operations,financialposition,andliquiditycouldbe negativelyaffected.Serviceinterruptionsduetofailuresofequipmentorfacilitiesasaresultofsevereordestructiveweatheror othercauses,andtheabilityofAmerenMissouriand AmerenIllinoistopromptlyrespondtosuchfailures,can affectcustomersatisfaction.Inadditiontosystemreliability issues,thesuccessofmodernizationefforts,suchasthose plannedforAmerenIllinois'electricandnaturalgasdelivery systems,ourabilitytosafeguardsensitivecustomer information,andotheractionscanaffectcustomer satisfaction.Thetimingandmagnitudeofrateincreases andvolatilityofratescanalsoaffectcustomersatisfaction.
Customers',legislators'andregulators'opinionsofuscan alsobeaffectedbymediacoverage,includingthe proliferationofsocialmedia,whichmayinclude information,whetherfactualornot,thatdamagesourbrand andreputation.Ifcustomers,legislatorsorregulatorshaveanegativeopinionofusandourutilityservices,thiscouldresultin increasedregulatoryoversightandcouldimpactthereturns oncommonequityweareallowedtoearn.Additionally, negativeopinionsaboutuscouldmakeitmoredifficultfor ourutilitiestoachievefavorablelegislativeorregulatory outcomes.Negativeopinionscouldalsoresultinsales volumereductionsandincreaseduseofdistributed generation.Anyoftheseconsequencescouldadversely affectourresultsofoperations,financialposition,and
liquidity.Wearesubjecttofederalregulatorycomplianceandproceedings,whichincreaseourriskofregulatory penaltiesandothersanctions.TheFERCcanimposecivilpenaltiesof$1millionperviolationperdayforviolationofFERCstatutes,rules,and 19 orders,includingmandatoryNERCreliabilitystandards.Asownersandoperatorsofbulkpowertransmissionsystems andelectricenergycenters,wearesubjecttomandatory NERCreliabilitystandards,includingcybersecurity standards.Compliancewiththesemandatoryreliability standardsmaysubjectustohigheroperatingcostsand mayresultinincreasedcapitalexpenditures.Ifwewere foundnottobeincompliancewiththesemandatory reliabilitystandardsortheFERCstatutes,rules,andorders, wecouldincursubstantialmonetarypenaltiesandother sanctions,whichcouldadverselyaffectourresultsof operations,financialposition,andliquidity.TheFERCalso conductsauditsandreviewsofAmerenMissouri's,Ameren Illinois',andATXI'saccountingrecordstoassessthe accuracyofitsformularatemakingprocessandhasthe abilitytorequireretroactiverefundstocustomersfor previouslybilledamounts,withinterest.OPERATIONALRISKSTheconstructionofandcapitalimprovementstoourelectricandnaturalgasutilityinfrastructureinvolvesubstantialrisks.Theserisksincludeescalatingcosts, unsatisfactoryperformancebytheprojectswhen completed,theinabilitytocompleteprojectsas scheduled,costdisallowancesbyregulators,andthe inabilitytoearnanadequatereturnoninvestedcapital, anyofwhichcouldresultinhighercostsandtheclosure offacilities.Weexpecttoincursignificantcapitalexpendituresinordertomakeinvestmentstoimproveourelectricand naturalgasutilityinfrastructureandtocomplywithexisting environmentalregulations.Weestimatethatwewillincur upto$9.3billion(AmerenMissouri-upto$3.9billion; AmerenIllinois-upto$4.0billion;ATXI-upto
$1.4billion)ofcapitalexpendituresduringtheperiodfrom 2015through2019.Theseestimatesincludeallowancefor equityfundsusedduringconstruction.InvestmentsinAmeren'srate-regulatedoperationsareexpectedtoberecoverablefromratepayers,butaresubject toprudencereviewsand,dependingonthejurisdiction, regulatorylag.Ourabilitytocompleteconstructionprojectssuccessfullywithinprojectedestimatesiscontingentupon manyvariablesandsubjecttosubstantialrisks.These variablesinclude,butarenotlimitedto,project managementexpertiseandescalatingcostsformaterials, labor,andenvironmentalcompliance.Delaysinobtaining permits,shortagesinmaterialsandqualifiedlabor, suppliersandcontractorswhodonotperformasrequired undertheircontracts,changesinthescopeandtimingof projects,theinabilitytoraisecapitalonreasonableterms, orothereventsbeyondourcontrolthatcouldoccurmay materiallyaffecttheschedule,cost,andperformanceof theseprojects.Withrespecttocapitalexpendituresfor pollutioncontrolequipment,thereisariskthatapower plantmaynotbepermittedtocontinuetooperateif pollutioncontrolequipmentisnotinstalledbyprescribed deadlinesordoesnotperformasexpected.Shouldanysuchpollutioncontrolequipmentnotbeinstalledontimeor performasexpected,AmerenMissouricouldbesubjectto additionalcostsandtothelossofitsinvestmentinthe projectorfacility.Alloftheseriskscouldadverselyaffect ourresultsofoperations,financialposition,andliquidity.AsofDecember31,2014,AmerenMissourihadcapitalized$69millionofcostsincurredtolicense additionalnucleargenerationatitsexistingCallawayenergy centersite.Ifeffortsareabandonedorifmanagement concludesthatitisprobablethecostsincurredwillbe disallowedinrates,achargetoearningswouldbe recognizedintheperiodinwhichthatdeterminationwas made.TheNRCreviewoftheCOLapplicationtolicense additionalnucleargenerationattheCallawayenergycenter siteiscurrentlysuspendedthroughtheendof2015.AmerenandAmerenIllinoismaynotbeabletoexecutetheirelectrictransmissioninvestmentplansorto realizetheexpectedreturnonthoseinvestments.Ameren,throughATXIandAmerenIllinois,isallocatingsignificantadditionalcapitalresourcestoelectric transmissioninvestments.Thisallocationofcapital resourcesisbasedontheFERC'sregulatoryframeworkand arateofreturnoncommonequitythatiscurrentlyhigher thanthatallowedbyourstatecommissions.However,the FERCregulatoryframeworkandrateofreturnissubjectto change,includingchangesasaresultofthird-party complaintsandchallengesattheFERC.Theregulatory frameworkmaynotbeasfavorable,ortherateofreturn maybelower,inthefuture.Currently,theFERC-allowed returnoncommonequityforMISOtransmissionownersis 12.38%.InNovember2013,acomplaintcasewasfiled withtheFERCseekingareductionintheallowedreturnon commonequityundertheMISOtariff.Asecondcomplaint casewasfiledinFebruary2015.Thesecomplaintcases couldnegativelyaffectAmerenIllinois'andATXI'sallowed return.Anysuchreductionwouldalsoresultinarefundof transmissionservicerevenuesearnedsincethefilingofthe initialcomplaintcaseinNovember2013.A50basispoint reductionintheFERC-allowedreturnoncommonequity wouldreduceAmeren'sandAmerenIllinois'2015earnings byanestimated$4millionand$2million,respectively, basedonprojectedratebase.AsignificantportionofAmeren'splannedelectrictransmissioninvestmentsconsistsofthreeseparate projectstobeconstructedbyATXI,whichhavebeen approvedbyMISOasmulti-valueprojects.Thetotal investmentbyATXIinthesethreeprojectsisexpectedtobe morethan$1.6billion.Thelastoftheseprojectsis expectedtobecompletedin2019.AfailurebyATXIto completethesethreeprojectsontimeandwithinprojected costestimatescouldadverselyaffectAmeren'sresultsof operations,financialposition,andliquidity.TheFERChasissuedmultipleorders,whicharesubjecttoongoinglitigation,eliminatingtherightoffirst refusalforanelectricutilitytoconstructwithinitsservice territorycertainnewtransmissionprojectsforwhichthere willberegionalcostsharing.Iftheseordersareupheldby 20 thecourts,Amerenmightneedtocompetetobuildcertainfutureelectrictransmissionprojectsinitssubsidiaries' serviceterritories.SuchcompetitioncouldpreventAmeren frominvestinginfutureelectrictransmissionprojectstothe extentdesired.Also,Amerenmaynotbesuccessfulinits effortstobuildtransmissionassetsoutsideofits subsidiaries'serviceterritoriesorMISO.Ourelectricgeneration,transmissionanddistributionfacilitiesaresubjecttooperationalrisksthat couldadverselyaffectourresultsofoperations,financial position,andliquidity.Ourfinancialperformancedependsonthesuccessfuloperationofelectricgeneration,transmission,and distributionfacilities.Operationofelectricgeneration, transmission,anddistributionfacilitiesinvolvesmanyrisks, including:
facilityshutdownsduetooperatorerrororafailureofequipmentorprocesses; longer-than-anticipatedmaintenanceoutages; aginginfrastructurethatmayrequiresignificant expenditurestooperateandmaintain; disruptionsinthedeliveryoffuelorlackofadequate inventories,includingultra-low-sulfurcoalusedfor AmerenMissouri'scompliancewithenvironmental
regulations; lackofadequatewaterrequiredforcoolingplant
operations; labordisputes; inabilitytocomplywithregulatoryorpermit requirements,includingthoserelatingtoenvironmental
laws;disruptionsinthedeliveryofelectricitythatimpactour
customers; handling,storage,anddispositionofCCR; unusualoradverseweatherconditionsorothernatural disasters,includingseverestorms,droughts,floods, tornadoes,earthquakes,solarflares,and electromagneticpulses; accidentsthatmightresultininjuryorlossoflife, extensivepropertydamage,orenvironmentaldamage; cybersecurityrisks,includinglossofoperational controlofAmerenMissouri'senergycentersandour transmissionanddistributionsystemsandlossofdata, suchasutilitycustomerdataandaccountinformation throughinsideroroutsideractions; failureofotheroperators'facilitiesandtheeffectofthat failureonourelectricsystemandcustomers; theoccurrenceofcatastrophiceventssuchasfires, explosions,actsofsabotageorterrorism,pandemic healthevents,orothersimilaroccurrences; limitationsonamountsofinsuranceavailabletocover lossesthatmightariseinconnectionwithoperatingour electricgeneration,transmission,anddistribution facilities;and otherunanticipatedoperationsandmaintenance expensesandliabilities.AmerenMissouri'sownershipandoperationofanuclearenergycentercreatesbusiness,financial,and wastedisposalrisks.AmerenMissouri'sownershipoftheCallawayenergycentersubjectsittotherisksofnucleargeneration,which includethefollowing:
potentialharmfuleffectsontheenvironmentandhumanhealthresultingfromtheoperationofnuclear facilitiesandthestorage,handling,anddisposalof radioactivematerials; continueduncertaintyinthefederalgovernmentplanto permanentlystorespentnuclearfuelandtheriskof beingrequiredtoprovideforlong-termstorageof spentnuclearfuelattheCallawayenergycenter; limitationsontheamountsandtypesofinsurance availabletocoverlossesthatmightariseinconnection withtheCallawayenergycenterorotherUnitedStates nuclearfacilities; uncertaintieswithrespecttocontingenciesand retrospectivepremiumassessmentsrelatingtoclaims attheCallawayenergycenteroranyotherUnited Statesnuclearfacilities; publicandgovernmentalconcernsabouttheadequacy ofsecurityatnuclearfacilities; uncertaintieswithrespecttothetechnologicaland financialaspectsofdecommissioningnuclearfacilities attheendoftheirlicensedlives; limitedavailabilityoffuelsupply; costlyandextendedoutagesforscheduledor unscheduledmaintenanceandrefueling;and potentialadverseeffectsofanaturaldisasteroractsof sabotageorterrorism.TheNRChasbroadauthorityunderfederallawtoimposelicensingandsafetyrequirementsfornuclear facilities.Intheeventofnoncompliance,theNRChasthe authoritytoimposefinesortoshutdownaunit,orboth, dependinguponitsassessmentoftheseverityofthe situation,untilcomplianceisachieved.Revisedsafety requirementspromulgatedfromtimetotimebytheNRC couldnecessitatesubstantialcapitalexpendituresatnuclear facilitiessuchasAmerenMissouri'sCallawayenergy center.Inaddition,ifaseriousnuclearincidentwereto occur,itcouldhaveamaterialbutindeterminableadverse effectonAmeren'sandAmerenMissouri'sresultsof operations,financialcondition,andliquidity.Amajor incidentatanuclearfacilityanywhereintheworldcould causetheNRCtolimitorprohibittheoperationor relicensingofanydomesticnuclearunitandcouldalso causetheNRCtoimposeadditionalconditionsor requirementsontheindustry,whichcouldincreasecosts andresultinadditionalcapitalexpenditures.Underrevised standardsrelatingtoseismicrisk,theNRCmayrequire AmerenMissouritofurtherevaluatetheimpactofan earthquakeonitsCallawayenergycenterdueitsproximity toafaultline,whichcouldrequiretheinstallationof additionalcapitalequipment.
21 Ournaturalgasdistributionandstorageactivitiesinvolvenumerousrisksthatmayresultinaccidentsandotheroperatingrisksandcoststhatcouldadverselyaffect ourresultsofoperations,financialposition,andliquidity.Inherentinournaturalgasdistributionandstorageactivitiesareavarietyofhazardsandoperatingrisks,such asleaks,accidentalexplosions,mechanicalproblemsand cybersecurityrisks,whichcouldcausesubstantialfinancial losses.Inaddition,thesehazardscouldresultinserious injury,lossofhumanlife,significantdamagetoproperty, environmentalimpacts,andimpairmentofouroperations, whichinturncouldleadustoincursubstantiallosses.In accordancewithcustomaryindustrypractice,wemaintain insuranceagainstsome,butnotall,oftheserisksand losses.Thelocationofdistributionlinesandstorage facilitiesnearpopulatedareas,includingresidentialareas, businesscenters,industrialsites,andotherpublic gatheringplaces,couldincreasethelevelofdamages resultingfromtheserisks.Amajordomesticincident involvingnaturalgassystemscouldleadtoadditional capitalexpendituresandincreasedregulationofnaturalgas utilities.Theoccurrenceofanyoftheseeventscould materiallyadverselyaffectourresultsofoperations, financialposition,andliquidity.Significantportionsofourelectricgeneration,transmission,anddistributionfacilitiesandnaturalgas transmissionanddistributionfacilitiesareaging.This aginginfrastructuremayrequireadditionalmaintenance expendituresormayrequirereplacement.Ouraginginfrastructuremayposeriskstosystemreliabilityandexposeustoexpeditedoradditional unplannedcapitalexpendituresandoperatingcosts.Allof AmerenMissouri'scoal-firedenergycenterswere constructedpriorto1978,whileitsCallawaynuclearenergy centerwasconstructedpriorto1984.Theageofthese energycentersincreasestherisksofunplannedoutages, reducedgenerationoutput,andhighermaintenance expense.If,attheendofitslife,anenergycenter'scosthas notbeenfullyrecovered,AmerenMissourimaybe negativelyaffectedifsuchcostisnotallowedinratesbythe MoPSC.Agingtransmissionanddistributionfacilitiesare morepronetofailurethannewfacilities,whichresultsin highermaintenanceexpenseandtheneedtoreplacethese facilitieswithnewinfrastructure.Evenifthesystemis properlymaintained,itsreliabilitymayultimatelydeteriorate andnegativelyaffectourabilitytoserveourcustomers, whichcouldresultinadditionaloversightbyourregulators.
Thehighermaintenancecostsandcapitalexpendituresfor newreplacementinfrastructurecouldcauseadditionalrate volatilityforourcustomers,resistancebyourregulatorsto allowcustomerrateincreases,and/orregulatorylagin someofourjurisdictions,anyofwhichcouldadversely affectourresultsofoperations,financialposition,and
liquidity.Energyconservation,energyefficiency,distributedgeneration,andotherfactorsthatreduceenergydemand couldadverselyaffectourresultsofoperations,financial position,andliquidity.Requirementsandincentivestoreduceenergyconsumptionhavebeenproposedbyregulatoryagencies andintroducedbylegislatures.Conservationandenergy efficiencyprogramsaredesignedtoreduceenergydemand.
Unlessthereisaregulatorymechanismensuringrecovery, adeclineinusagewillresultinanunder-recoveryoffixed costsatourrate-regulatedbusinesses.AmerenMissouri, evenwiththeimplementationofcustomerenergyefficiency programsundertheMEEIA,isexposedtodecliningusage lossesfromenergyefficiencyeffortsnotrelatedtoits specificprogramsaswellasfromdistributedgeneration sourcessuchassolarpanels.Additionally,macroeconomic factorsresultinginloweconomicgrowthorcontraction withinourserviceterritoriescouldreduceenergydemand.Technologicaladvancescouldreducecustomerelectricityconsumption.AmerenMissourigeneratespower atutility-scaleenergycenterstoachieveeconomiesofscale andtoproducepoweratacompetitivecost.Some distributedgenerationtechnologieshaverecentlybecome morecost-competitive.Itispossiblethatadvancesin technologyandlegislativeorregulatoryactionswill continuetoreducethecostsofthesealternativemethodsof producingpowertoalevelthatiscompetitivewiththatof AmerenMissouri'senergycenters.Increasedadoptionof thesetechnologiescoulddecreaseourrevenuesas customersmightnotuseourgeneration,transmission,and distributionservicesatcurrentlevels.AmerenMissouriand AmerenIllinoismightincurstrandedcosts,whichultimately mightnotberecoveredthroughrates.Failuretoretainandattractkeyofficersandotherskilledprofessionalandtechnicalemployeescould adverselyaffectouroperations.Ourbusinessesdependuponourabilitytoemployandretainkeyofficersandotherskilledprofessionaland technicalemployees.Asignificantportionofourworkforce isnearingretirement,includingmanyemployeeswith specializedskills,suchasmaintainingandservicingour electricandnaturalgasinfrastructureandoperatingour energycenters.Ouroperationsaresubjecttoactsofsabotage,war,terrorism,cyberattacks,andotherintentionally disruptiveacts.Likeotherelectricandnaturalgasutilities,ourenergycenters,fuelstoragefacilities,transmissionanddistribution facilities,andinformationsystemsmaybetargetsof terroristactivities,includingcyberattacks,whichcould disruptourabilitytoproduceordistributesomeportionof ourenergyproducts.Anysuchdisruptioncouldresultina significantdecreaseinrevenuesorsignificantadditional costsforrepair,whichcouldadverselyaffectourresultsof operations,financialposition,andliquidity.
22 Ourindustryhasbeguntoseeanincreaseinvolumeandsophisticationofcybersecurityincidentsfrominternationalactivistorganizations,countries,and individuals.Asecuritybreachofourphysicalassetsor informationsystemscouldaffectthereliabilityofthe transmissionanddistributionsystem,disruptelectric generation,and/orsubjectustofinancialharmassociated withtheftorinappropriatereleaseofcertaintypesof information,includingsensitivecustomerandemployee data.Ifasignificantbreachoccurred,ourreputationcould beadverselyaffected,customerconfidencecouldbe diminished,orwecouldbesubjecttolegalclaims,anyof whichcouldresultinasignificantdecreaseinrevenuesor significantadditionalcostsforremedyingtheimpactsof suchabreach.Ourgeneration,transmissionand distributionsystemsarepartofaninterconnectedsystem.
Therefore,adisruptioncausedbyacybersecurityincident atanotherutility,electricgenerator,RTO,orcommodity suppliercouldalsoadverselyaffectourbusinesses.We maintaininsuranceagainstsome,butnotall,oftheserisks andlosses.Inaddition,regulationscouldrequirechanges inoursecuritymeasuresandcouldadverselyaffectour resultsofoperations,financialposition,andliquidity.AmerenMissourimayultimatelynotcollectitsreceivablefromaninsurancecompanythatprovided liabilitycoverageatthetimeofthebreachoftheupper reservoirofitsTaumSaukpumped-storagehydroelectric energycenter,whichcouldhaveamaterialadverse effectonAmeren'sandAmerenMissouri'sresultsof operations,financialcondition,andliquidity.InDecember2005,therewasabreachoftheupperreservoiratAmerenMissouri'sTaumSaukpumped-storage hydroelectricenergycenter.Thisbreachresultedin significantfloodinginthelocalarea,whichdamagedastate park.AmerenMissourihadliabilityinsurancecoveragefor theTaumSaukincident,subjecttocertainlimitsand deductibles.Ameren'sandAmerenMissouri'sresultsof operations,financialposition,andliquiditycouldbe adverselyaffectedifAmerenMissouri'sremainingliability insuranceclaimof$41millionasofDecember31,2014,is notpaid.Theinsuranceclaimiscurrentlysubjectto
litigation.FINANCIAL,ECONOMICANDMARKETRISKSOurbusinessesaredependentonourabilitytoaccessthecapitalmarketssuccessfully.Wemaynothaveaccesstosufficientcapitalintheamountsandat thetimesneeded.Werelyonshort-termandlong-termdebtassignificantsourcesofliquidityandfundingforcapital requirementsnotsatisfiedbyouroperatingcashflow,as wellastorefinancelong-termdebt.Theinabilitytoraise debtorequitycapitalonreasonableterms,oratall,could negativelyaffectourabilitytomaintainandtoexpandour businesses.Eventsbeyondourcontrol,suchasarecession orextremevolatilityinthedebt,equity,orcreditmarkets, maycreateuncertaintythatcouldincreaseourcostofcapitalorimpairoreliminateourabilitytoaccessthedebt, equity,orcreditmarkets,includingourabilitytodrawon bankcreditfacilities.Anyadversechangeinourcredit ratingscouldreduceaccesstocapitalandtriggeradditional collateralpostingsandprepayments.Suchchangescould alsoincreasethecostofborrowingandfuel,powerand naturalgassupply,amongotherthings,whichcouldhavea materialadverseeffectonourresultsofoperations, financialposition,andliquidity.CertainAmeren subsidiaries,suchasATXI,relyonAmerenforaccessto capital.CircumstancesthatlimitAmeren'saccesstocapital couldimpairitsabilitytoprovidethosesubsidiarieswith neededcapital.Ameren'sholdingcompanystructurecouldlimititsabilitytopaycommonstockdividendsandtoserviceits debtobligations.Amerenisaholdingcompany;therefore,itsprimaryassetsareitsinvestmentsinthecommonstockofits subsidiaries,includingAmerenMissouriandAmeren Illinois.Asaresult,Ameren'sabilitytopaydividendsonits commonstockdependsontheearningsofitssubsidiaries andtheabilityofitssubsidiariestopaydividendsor otherwisetransferfundstoAmeren.Similarly,Ameren's abilitytoserviceitsdebtobligationsisdependentuponthe earningsofoperatingsubsidiariesandthedistributionof thoseearningsandotherpayments,includingpaymentsof principalandinterestunderintercompanyindebtedness.
ThepaymentofdividendstoAmerenbyitssubsidiariesin turndependsontheirresultsofoperationsandavailable cashandotheritemsaffectingretainedearnings.Ameren's subsidiariesareseparateanddistinctlegalentitiesandhave noobligation,contingentorotherwise,topayanydividends ormakeanyotherdistributions(exceptforpayments requiredpursuanttothetermsofintercompanyborrowing arrangementsandcashpaymentsunderthetaxallocation agreement)toAmeren.Certainfinancingagreements, corporateorganizationaldocuments,andcertainstatutory andregulatoryrequirementsmayimposerestrictionsonthe abilityofAmerenMissouriandAmerenIllinoistotransfer fundstoAmerenintheformofcashdividends,loans,or
advances.Dynegy'soritssubsidiaries'failuretosatisfycertainoftheirindemnityandotherobligationstoAmerenin connectionwiththedivestitureofNewAERtoIPHcould haveamaterialadverseeffectonAmeren'sresultsof operations,financialposition,andliquidity.InDecember2013,AmerencompletedthedivestitureofNewAERtoIPH.Thetransactionagreementbetween AmerenandIPHrequiresAmeren,untilDecember2,2015, tomaintainitsfinancialobligationsinexistenceasof December2,2013,underallcreditsupportarrangements orobligationsthatpertaintoNewAERanditssubsidiaries.
Amerenmustalsoprovideanyadditionalcreditsupportthat maybecontractuallyrequiredpursuanttoanyofthe contractsofNewAER,anditssubsidiariesasof December2,2013.IPH,NewAERanditssubsidiaries,and DynegyhaveagreedtoindemnifyAmerenforcertainlosses relatingtothiscreditsupport.IPH'sindemnification 23 obligationsaresecuredbycertainAERGandGencoassets.However,theseindemnificationobligationsandsecurity interestsmightnotcoveralllossesthatcouldbeincurred byAmereninconnectionwithprovidingthiscreditsupport.
AsofDecember31,2014,thebalanceoftheMarketing CompanynotetoAmerenwas$12million.Additionally,as ofDecember31,2014,Amerenprovided$114millionin guaranteesand$9millioninlettersofcreditrelatingtoits creditsupportofNewAER.Dynegyemergedfromits Chapter11bankruptcycasein2012.AsofDecember31, 2014,Dynegy'screditratingsweresub-investment-grade.
IPH,NewAERanditssubsidiariesalsodonothave investment-gradecreditratings.Dynegy,IPH,NewAER,or theirsubsidiariesmightnotbeabletosatisfytheir indemnityandotherobligationsunderthetransaction agreement,MarketingCompany'snotetoAmeren,or Dynegy'slimitedguaranteetoAmeren,whichcouldhavea materialadverseimpactonAmeren'sresultsofoperations, financialposition,andliquidity.Increasingcostsassociatedwithourdefinedbenefitretirementandpostretirementplans,healthcareplans, andotheremployeebenefitscouldadverselyaffectour financialpositionandliquidity.Weofferdefinedbenefitretirementandpostretirementplansthatcoversubstantiallyallofouremployees.
Assumptionsrelatedtofuturecosts,returnson investments,interestrates,timingofemployeeretirements, andmortality,aswellasotheractuarialmatters,havea significantimpactonourcustomers'ratesandourplan fundingrequirements.Ameren'stotalunfundedobligationunderitspensionandpostretirementbenefitplanswas
$710millionasofDecember31,2014.Amerenexpectsto funditspensionplansatalevelequaltothegreaterofthe pensionexpenseorthelegallyrequiredminimum contribution.ConsideringAmeren'sassumptionsat December31,2014,itsinvestmentperformancein2014, anditspensionfundingpolicy,Amerenexpectstomake annualcontributionsof$25millionto$115millionineach ofthenextfiveyears,withaggregateestimated contributionsof$290million.WeexpectAmerenMissouri's andAmerenIllinois'portionofthefuturefunding requirementstobe41%and40%,respectively.These amountsareestimates.Theymaychangewithactual investmentperformance,changesininterestrates,changes inourassumptions,changesingovernmentregulations, andanyvoluntarycontributions.Inadditiontothecostsofourretirementplans,thecostsofprovidinghealthcarebenefitstoouremployees andretireeshaveincreasedinrecentyears.Webelievethat ouremployeebenefitcosts,includingcostsofhealthcare plansforouremployeesandformeremployees,will continuetorise.Theincreasingcostsandfunding requirementsassociatedwithourdefinedbenefitretirement plans,healthcareplans,andotheremployeebenefitscould increaseourfinancingneedsandotherwisematerially adverselyaffectourfinancialpositionandliquidity.ITEM1B.UNRESOLVEDSTAFFCOMMENTS None.24 ITEM2.PROPERTIESForinformationonourprincipalproperties,seetheenergycentertablebelow.SeealsoLiquidityandCapitalResourcesandRegulatoryMattersinManagement'sDiscussionandAnalysisofFinancialConditionandResultsofOperationsunderPartII,Item7,ofthisreportforadiscussionofplannedadditions,replacementsortransfers.SeealsoNote5-Long-termDebt andEquityFinancings,andNote15-CommitmentsandContingenciesunderPartII,Item8,ofthisreport.ThefollowingtableshowstheanticipatedcapabilityofAmerenMissouri'senergycentersatthetimeofAmerenMissouri'sexpected2015peaksummerelectricaldemand:PrimaryFuelSourceEnergyCenter LocationNetKilowattCapability (a)Coal........................................LabadieFranklinCounty,Missouri2,372,000RushIslandJeffersonCounty,Missouri1,180,000SiouxSt.CharlesCounty,Missouri970,000MeramecSt.LouisCounty,Missouri831,000Totalcoal....................................
5,353,000 Nuclear......................................CallawayCallawayCounty,Missouri1,193,000 Hydroelectric
.................................OsageLakeside,Missouri240,000KeokukKeokuk,Iowa140,000Totalhydroelectric
.............................
380,000 Pumped-storage
...............................TaumSaukReynoldsCounty,Missouri440,000Oil(CTs).....................................MeramecSt.LouisCounty,Missouri54,000FairgroundsJeffersonCity,Missouri54,000MexicoMexico,Missouri53,000MoberlyMoberly,Missouri53,000MoreauJeffersonCity,Missouri53,000Totaloil.....................................
267,000Naturalgas(CTs)
..............................
Audrain (b)AudrainCounty,Missouri 600,000 Venice (c)Venice,Illinois 487,000GooseCreekPiattCounty,Illinois 432,000 PinckneyvillePinckneyville,Illinois 316,000RaccoonCreekClayCounty,Illinois 300,000 Kinmundy (c)Kinmundy,Illinois 206,000PenoCreek (b)(c)BowlingGreen,Missouri 188,000 Meramec (c)St.LouisCounty,Missouri 44,000 KirksvilleKirksville,Missouri 13,000Totalnaturalgas
...............................
2,586,000Methanegas(CT)
..............................MarylandHeightsMarylandHeights,Missouri 8,000 Solar........................................
O'FallonO'Fallon,Missouri 3,000TotalAmerenandAmerenMissouri
..............
10,230,000(a)Netkilowattcapabilityisthegeneratingcapacityavailablefordispatchfromtheenergycenterintotheelectrictransmissiongrid.(b)ThereareeconomicdevelopmentleasearrangementsapplicabletotheseCTs.
(c)TheseCTshavethecapabilitytooperateoneitheroilornaturalgas(dualfuel).Thefollowingtablepresentsin-serviceelectricandnaturalgasutility-relatedpropertiesforAmerenMissouriandAmerenIllinoisasofDecember31,2014:
Ameren Missouri Ameren IllinoisCircuitmilesofelectrictransmissionlines (a)...2,9564,558Circuitmilesofelectricdistributionlines
......33,14446,071Circuitmilesofelectricdistributionlines underground.........................23%15%Milesofnaturalgastransmissionanddistributionmains
.....................3,33418,246Undergroundgasstoragefields.............-12Totalworkingcapacityofundergroundgasstoragefieldsinbillioncubicfeet.........-24(a)ATXIowns29milesoftransmissionlinesnotreflectedinthistable.Ourotherpropertiesincludeofficebuildings,warehouses,garages,andrepairshops.Withonlyafewexceptions,wehavefeetitletoallprincipalenergycentersandotherunitsofpropertymaterial totheoperationofourbusinesses,andtotherealproperty onwhichsuchfacilitiesarelocated(subjecttomortgage lienssecuringouroutstandingfirstmortgagebondsandto certainpermittedliensandjudgmentliens).Theexceptions areasfollows:
AportionofAmerenMissouri'sOsageenergycenterreservoir,certainfacilitiesatAmerenMissouri'sSioux energycenter,mostofAmerenMissouri'sPenoCreek andAudrainCTenergycenters,certainsubstations, andmosttransmissionanddistributionlinesand naturalgasmainsaresituatedonlandsoccupiedunder 25 leases,easements,franchises,licenses,orpermits.TheUnitedStatesorthestateofMissourimayownormay haveparamountrightstocertainlandslyinginthebed oftheOsageRiverorlocatedbetweentheinnerand outerharborlinesoftheMississippiRiveronwhich certainofAmerenMissouri'senergycentersandother propertiesarelocated.
TheUnitedStates,thestateofIllinois,thestateofIowa, orthecityofKeokuk,Iowa,mayownormayhave paramountrightswithrespecttocertainlandslyingin thebedoftheMississippiRiveronwhichaportionof AmerenMissouri'sKeokukenergycenterislocated.SubstantiallyallofthepropertiesandplantofAmerenMissouriandAmerenIllinoisaresubjecttothefirstliensof theindenturessecuringtheirmortgagebonds.AmerenMissourihasconveyedmostofitsPenoCreekCTenergycentertothecityofBowlingGreen,Missouri, andleasedtheenergycenterbackfromthecitythrough 2022.Underthetermsofthiscapitallease,Ameren Missouriisresponsibleforalloperationandmaintenance fortheenergycenter.Ownershipoftheenergycenterwill transfertoAmerenMissouriattheexpirationofthelease,at whichtimethepropertyandplantwillbecomesubjectto thelienofanyAmerenMissourifirstmortgagebond indentureineffectatsuchtime.AmerenMissourioperatesaCTenergycenterlocatedinAudrainCounty,Missouri.AmerenMissourihasrights andobligationsaslesseeoftheCTenergycenterundera long-termleasewithAudrainCounty.Theleasewillexpire onDecember1,2023.Underthetermsofthiscapitallease, AmerenMissouriisresponsibleforalloperationand maintenancefortheenergycenter.Ownershipoftheenergy centerwilltransfertoAmerenMissouriattheexpirationof thelease,atwhichtimethepropertyandplantwillbecome subjecttothelienofanyAmerenMissourifirstmortgage bondindenturethenineffect.ITEM3.LEGALPROCEEDINGSWeareinvolvedinlegalandadministrativeproceedingsbeforevariouscourtsandagencieswithrespecttomattersthatariseintheordinarycourseof business,someofwhichinvolvesubstantialamountsof money.Webelievethatthefinaldispositionofthese proceedings,exceptasotherwisedisclosedinthisreport,willnothaveamaterialadverseeffectonourresultsof operations,financialposition,orliquidity.Riskoflossis mitigated,insomecases,byinsuranceorcontractualor statutoryindemnification.Webelievethatwehave establishedappropriatereservesforpotentiallosses.
Materiallegalandadministrativeproceedings,whichare discussedinNote2-RateandRegulatoryMattersand Note15-CommitmentandContingenciesunderPartII, Item8,ofthisreportandareincorporatedhereinby reference,includethefollowing:
AmerenMissouri'selectricratecasefiledwiththeMoPSCinJuly2014,includingtherateshiftrequest filedbytheMoOPC,theMIECandotherparties; AmerenMissouri'sMEEIAfilingwiththeMoPSCin December2014; AmerenIllinois'appealoftheICC'sDecember2013 naturalgasrateorder; AmerenIllinois'naturalgasratecasefiledwiththeICC inJanuary2015; AmerenIllinois'requestforrehearingofaSeptember 2014FERCorderrequiringrefundstowholesale
customers; ATXI'srequestforacertificateofpublicconvenience andnecessityandprojectapprovalfromtheICCforthe SpoonRiverproject; Entergy'sappealofaMay2012FERCorderrequiring EntergytorefundtoAmerenMissouriadditional chargespaidunderanexpiredpowerpurchase
agreement; AmerenIllinois'requestforrehearingoftheFERC's June2014orders,theappealfiledwiththeUnited StatesCourtofAppealsfortheDistrictofColumbia Circuit,andsettlementproceduresregardingapotential electrictransmissionraterefund; thecomplaintcasesfiledwiththeFERCseekinga reductionintheallowedbasereturnoncommonequity undertheMISOtariff; theEPA'sCleanAirAct-relatedlitigationagainst AmerenMissouri; remediationmattersassociatedwithformerMGPand wastedisposalsitesoftheAmerenCompanies; litigationassociatedwithAmerenMissouri'sliability insuranceclaimforthebreachoftheupperreservoirof itsTaumSaukpumped-storagehydroelectricenergy centerinDecember2005;and asbestos-relatedlitigationassociatedwiththeAmeren
Companies.
26 ITEM4.MINESAFETYDISCLOSURESNotapplicable.EXECUTIVEOFFICERSOFTHEREGISTRANTS(ITEM401(b)OFREGULATIONS-K):TheexecutiveofficersoftheAmerenCompanies,includingmajorsubsidiaries,arelistedbelow,alongwiththeiragesasofDecember31,2014,allpositionsandofficesheldwiththeAmerenCompaniesasofFebruary23,2015,tenureasofficer,andbusinessbackgroundforatleastthelastfiveyears.SomeexecutiveofficersholdmultiplepositionswithintheAmeren Companies;theirtitlesaregiveninthedescriptionoftheirbusinessexperience.Referencesto"AmerenIllinoiscompanies" belowreferstoCIPS,CILCO,andIPcollectivelypriortotheAmerenIllinoisMergerandtoAmerenIllinoisfollowingthe AmerenIllinoisMerger.AMERENCORPORATION:
NameAgePositionsandOfficesHeldWarnerL.Baxter53Chairman,PresidentandChiefExecutiveOfficer,andDirectorBaxterjoinedAmerenMissouriin1995.Baxterwaselectedtothepositionsofexecutivevicepresidentandchieffinancial officerofAmeren,AmerenMissouri,CIPS,CILCO,andAmerenServicesin2003andofIPin2004.Hewaselectedchairman, president,chiefexecutiveofficer,andchieffinancialofficerofAmerenServicesin2007.In2009,Baxterwaselectedchairman, presidentandchiefexecutiveofficerofAmerenMissouri.InFebruary2014,BaxterwaselectedpresidentofAmerenandwas appointedtotheAmerenboard.InApril2014,herelinquishedhispositionsatAmerenMissouriandwaselectedchief executiveofficerofAmeren.InJuly2014,BaxterwaselectedchairmanoftheAmerenboard.MartinJ.Lyons,Jr.48ExecutiveVicePresidentandChiefFinancialOfficerLyonsjoinedAmerenServicesin2001.In2008,Lyonswaselectedseniorvicepresidentandprincipalaccountingofficerof theAmerenCompanies.In2009,LyonswasalsoelectedchieffinancialofficeroftheAmerenCompanies.In2013,Lyonswas electedexecutivevicepresidentandchieffinancialofficeroftheAmerenCompanies,andrelinquishedhisdutiesasprincipal accountingofficer.GregoryL.Nelson57SeniorVicePresident,GeneralCounsel,andSecretaryNelsonjoinedAmerenMissouriin1995.NelsonwaselectedvicepresidentandtaxcounselofAmerenServicesin1999and vicepresidentofAmerenMissouri,CIPS,andCILCOin2003andofIPin2004.In2010,Nelsonwaselectedvicepresident,tax anddeputygeneralcounselofAmerenServices.HeremainedvicepresidentofAmerenMissouriandtheAmerenIllinois companies.In2011,Nelsonwaselectedseniorvicepresident,generalcounselandsecretaryoftheAmerenCompanies.BruceA.Steinke53SeniorVicePresident,Finance,andChiefAccountingOfficerSteinkejoinedAmerenServicesin2002.In2008,hewaselectedvicepresidentandcontrollerofAmeren,theAmerenIllinois companies,andAmerenServices.In2009,SteinkerelinquishedhispositionsattheAmerenIllinoiscompanies.In2013, Steinkewaselectedseniorvicepresident,finance,andchiefaccountingofficeroftheAmerenCompanies.
27 SUBSIDIARIES:
NameAgePositionsandOfficesHeldMarkC.Birk50SeniorVicePresident,CorporatePlanningandOversight(AmerenServices)BirkjoinedAmerenMissouriin1986.In2005,Birkwaselectedvicepresident,poweroperations,ofAmerenMissouri.In 2012,Birkwaselectedseniorvicepresident,corporateplanning,ofAmerenServices.InNovember2014,hewasalsoelected seniorvicepresident,oversight,ofAmerenServices.MaureenA.Borkowski57ChairmanandPresident(ATXI)BorkowskijoinedAmerenMissouriin1981.Sheleftthecompanyin2000andrejoinedAmerenin2005asvicepresident,transmission,ofAmerenServices.In2011,BorkowskiwaselectedchairmanandpresidentofATXI.In2011,shewasalso electedseniorvicepresident,transmission,ofAmerenServices.DanielF.Cole61ChairmanandPresident(AmerenServices)ColejoinedAmerenMissouriin1976.HewaselectedseniorvicepresidentofAmerenMissouriandAmerenServicesin1999andofCIPSin2001.HewaselectedseniorvicepresidentofCILCOin2003andofIPin2004.In2009,Colewaselected chairmanandpresidentofAmerenServices;heremainedseniorvicepresidentofAmerenMissouriandtheAmerenIllinois
companies.FadiM.Diya52SeniorVicePresidentandChiefNuclearOfficer(AmerenMissouri)DiyajoinedAmerenMissouriin2005.In2008,DiyawaselectedvicepresidentofnuclearoperationsatAmerenMissouri.InJanuary2014,DiyawaselectedseniorvicepresidentandchiefnuclearofficerofAmerenMissouri.RichardJ.Mark59ChairmanandPresident(AmerenIllinois)MarkjoinedAmerenServicesin2002.Hewaselectedseniorvicepresident,customeroperationsofAmerenMissouriin2005.In2012,MarkrelinquishedhispositionatAmerenMissouriandwaselectedchairmanandpresidentofAmerenIllinois.MichaelL.Moehn45ChairmanandPresident(AmerenMissouri)MoehnjoinedAmerenServicesin2000.In2008,hewaselectedseniorvicepresident,corporateplanningandbusinessriskmanagement,ofAmerenServices.In2012,MoehnrelinquishedhispositionatAmerenServicesandwaselectedseniorvice presidentofcustomeroperationsofAmerenIllinois.Subsequentlyin2012,MoehnrelinquishedhispositionatAmerenIllinois andwaselectedseniorvicepresident,customeroperations,ofAmerenMissouri.InApril2014,Moehnwaselectedchairman andpresidentofAmerenMissouri.CharlesD.Naslund62ExecutiveVicePresident(AmerenMissouri)NaslundjoinedAmerenMissouriin1974.In2008,hewaselectedchairman,presidentandchiefexecutiveofficerofAER.In2011,Naslundassumedthepositionofseniorvicepresident,generationandenvironmentalprojects,ofAmerenMissouriand relinquishedhispositionsofchairman,president,andchiefexecutiveofficerofAER.In2013,Naslundrelinquishedhis positionatAmerenMissouriandwaselectedexecutivevicepresidentofAmerenServices.Subsequentlyin2013,Naslundwas electedexecutivevicepresidentofAmerenMissouri.NaslundretiredfromeachofhispositionswithAmereneffective March1,2015.Officersaregenerallyelectedorappointedannuallybytherespectiveboardofdirectorsofeachcompany,followingtheelectionofboardmembersattheannualmeetingsofshareholders.Nospecialarrangementorunderstandingexistsbetween anyoftheabove-namedexecutiveofficersandtheAmerenCompaniesnor,toourknowledge,withanyotherpersonor personspursuanttowhichanyexecutiveofficerwasselectedasanofficer.Therearenofamilyrelationshipsamongthe executiveofficersorbetweentheexecutiveofficersandanydirectorsoftheAmerenCompanies.Alloftheabove-named executiveofficershavebeenemployedbyanAmerencompanyformorethanfiveyearsinexecutiveormanagementpositions.
28 PARTIIITEM5.MARKETFORREGISTRANTS'COMMONEQUITY,RELATEDSTOCKHOLDERMATTERS,ANDISSUERPURCHASEOFEQUITYSECURITIESAmeren'scommonstockislistedontheNYSE(tickersymbol:AEE).Amerencommonshareholdersofrecordtotaled54,755onJanuary31,2015.Thefollowingtablepresentsthepriceranges,closingprices,anddividendsdeclaredperAmerencommonshareforeachquarterduring2014and2013.HighLowCloseDividendsDeclared2014QuarterEnded:March31............................................................$42.24$35.22$41.20$0.40June30.............................................................41.9237.6740.880.40September30
........................................................40.9636.6538.330.40December31
.........................................................48.1438.2546.130.412013QuarterEnded:March31............................................................$35.12$30.64$35.02$0.40June30.............................................................36.7432.3434.440.40September30
........................................................36.7032.6134.840.40December31
.........................................................37.3134.1836.160.40ThereisnotradingmarketforthecommonstockofAmerenMissouriandAmerenIllinois.AmerenholdsalloutstandingcommonstockofAmerenMissouriandAmerenIllinois.ThefollowingtablesetsforththequarterlycommonstockdividendpaymentsmadebyAmerenanditsregistrantsubsidiariesduring2014and2013:(Inmillions) 2014QuarterEnded 2013QuarterEndedRegistrantDecember31September30June30March31December31September30June30March31AmerenMissouri
..........$72 (a)$113$78$77$140$140$90$90AmerenIllinois
...........----65151515 Ameren.................9997979797979797(a)Additionally,duringthefourthquarterof2014,AmerenMissourireturnedcapitalof$215milliontoAmeren(parent).OnFebruary13,2015,theboardofdirectorsofAmerendeclaredaquarterlydividendonAmeren'scommonstockof41centspershare.ThecommonsharedividendispayableMarch31,2015,toshareholdersofrecordonMarch11,2015.ForadiscussionofrestrictionsontheAmerenCompanies'paymentofdividends,seeLiquidityandCapitalResourcesinManagement'sDiscussionandAnalysisofFinancialConditionandResultsofOperationsunderPartII,Item7,ofthisreport.PurchasesofEquitySecuritiesAmeren,AmerenMissouri,andAmerenIllinoisdidnotpurchaseequitysecuritiesreportableunderItem703ofRegulationS-KduringtheperiodfromOctober1,2014,toDecember31,2014.
29 PerformanceGraphThefollowinggraphshowsAmeren'scumulativetotalshareholderreturnduringthefiveyearsendedDecember31,2014.ThegraphalsoshowsthecumulativetotalreturnsoftheS&P500IndexandtheEdisonElectricInstituteIndex(EEIIndex),whichcomprisesmostinvestor-ownedelectricutilitiesintheUnitedStates.Thecomparisonassumesthat$100wasinvested onDecember31,2009,inAmerencommonstockandineachoftheindicesshown,anditassumesthatallofthedividends werereinvested.
100 2014 2013 2012 2011 2010 2009 AEE S&P 500 I nd ex EEI I nd ex 50 150 200 250December31,200920102011201220132014Ameren(AEE).....................................$100.00$106.85$132.24$128.89$158.94$210.96S&P500Index
....................................100.00115.06117.49136.29180.43 205.13EEIIndex.........................................100.00107.04128.44131.12148.18 191.02Amerenmanagementcautionsthatthestockpriceperformanceshowninthegraphaboveshouldnotbeconsideredindicativeofpotentialfuturestockpriceperformance.
30 ITEM6.SELECTEDFINANCIALDATAFortheyearsendedDecember31,(Inmillions,exceptpershareamounts)20142013201220112010 Ameren (a):Operatingrevenues
..........................................$6,053$5,838$5,781$6,148$6,188Operatingincome (b)..........................................
1,2541,1841,1881,0331,175Incomefromcontinuingoperations
..............................
593518522437523Income(loss)fromdiscontinuedoperations,netoftaxes (c)...........
(1)(223)(1,496)89(372)Netincome(loss)attributabletoAmerenCorporation
................
586289(974)519139Commonstockdividends
.....................................
390388382375368Continuingoperationsearningspershare-basic
...................
2.422.112.131.792.15Continuingoperationsearningspershare-diluted
.................
2.402.102.131.792.15Commonstockdividendspershare
.............................
1.611.601.601.5551.54AsofDecember31:Totalassets (d)..............................................$22,676$21,042$22,230$23,723$23,511Long-termdebt,excludingcurrentmaturities
......................
6,1205,5045,8025,8536,029TotalAmerenCorporationstockholders'equity
.....................
6,7136,5446,6167,9197,730AmerenMissouri:Operatingrevenues
..........................................$3,553$3,541$3,272$3,383$3,197Operatingincome (b)..........................................
785803845609711Netincomeavailabletocommonstockholder
......................
390395416287364Dividendstoparent
..........................................
340460400403235AsofDecember31:Totalassets
................................................$13,541$12,904$13,043$12,757$12,504Long-termdebt,excludingcurrentmaturities
......................
3,8793,6483,8013,7723,949Totalstockholders'equity
.....................................
4,0523,9934,0544,0374,153AmerenIllinois:Operatingrevenues
..........................................$2,498$2,311$2,525$2,787$3,014Operatingincome
...........................................
450415377458498Netincomeavailabletocommonstockholder
......................
201160141193248Dividendstoparent
..........................................
-110189327133AsofDecember31:Totalassets
................................................$8,381$7,454$7,282$7,213$7,406Long-termdebt,excludingcurrentmaturities
......................
2,2411,8561,5771,6571,657Totalstockholders'equity
.....................................
2,6612,4482,4012,4522,576(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.(b)IncludesregulatorydisallowanceassociatedwiththeTaumSaukincidentof$89millionrecordedatAmerenandAmerenMissourifortheyearendedDecember31,2011.(c)SeeNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8,ofthisreportforadditionalinformation.
(d)Includestotalassetsfromdiscontinuedoperationsof$15million,$165million,$1,611million,$3,721million,and$3,825millionatDecember31,2014,2013,2012,2011,and2010,respectively.ITEM7.MANAGEMENT'SDISCUSSIONANDANALYSISOFFINANCIALCONDITIONANDRESULTSOFOPERATIONSAmeren,headquarteredinSt.Louis,Missouri,isapublicutilityholdingcompanyunderPUHCA2005,administeredbytheFERC.Ameren'sprimaryassetsareits equityinterestsinitssubsidiaries,includingAmeren MissouriandAmerenIllinois.Ameren'ssubsidiariesare separate,independentlegalentitieswithseparate businesses,assets,andliabilities.DividendsonAmeren's commonstockandthepaymentofotherexpensesby Amerendependondistributionsmadetoitbyits
subsidiaries.BelowisasummarydescriptionofAmerenMissouriandAmerenIllinois.Amoredetaileddescriptioncanbe foundinNote1-SummaryofSignificantAccounting PoliciesunderPartII,Item8,ofthisreport.
AmerenMissourioperatesarate-regulatedelectricgeneration,transmission,anddistributionbusinessandarate-regulatednaturalgastransmissionand distributionbusinessinMissouri.
AmerenIllinoisoperatesrate-regulatedelectricand naturalgastransmissionanddistributionbusinessesin
Illinois.Amerenhasvariousothersubsidiariesresponsibleforactivitiessuchastheprovisionofsharedservices.Ameren alsohasasubsidiary,ATXI,thatoperatesaFERCrate-regulatedelectrictransmissionbusiness.ATXIisdeveloping MISO-approvedelectrictransmissionprojects,includingthe IllinoisRivers,SpoonRiver,andMarkTwainprojects.
AmerenisalsopursuingreliabilityprojectswithinAmeren Missouri'sandAmerenIllinois'serviceterritoriesaswellas competitiveelectrictransmissioninvestmentopportunities outsideoftheseterritories,includinginvestmentsoutsideof
MISO.31 Unlessotherwisestated,thefollowingsectionsofManagement'sDiscussionandAnalysisofFinancialConditionandResultsofOperationsexcludediscontinued operationsforallperiodspresented.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsunder PartII,Item8,ofthisreportforadditionalinformation regardingthatpresentation.ThefinancialstatementsofAmerenarepreparedonaconsolidatedbasisandthereforeincludetheaccountsofits majority-ownedsubsidiaries.AmerenMissouriandAmeren Illinoishavenosubsidiaries,andthereforetheirfinancial statementsarenotpreparedonaconsolidatedbasis.All intercompanytransactionshavebeeneliminated.Alltabular dollaramountsareinmillions,unlessotherwiseindicated.Inadditiontopresentingresultsofoperationsandearningsamountsintotal,wepresentcertaininformationin centspershare.Theseamountsreflectfactorsthatdirectly affectAmeren'searnings.Webelievethatthispershare informationhelpsreaderstounderstandtheimpactofthese factorsonAmeren'searningspershare.Allreferencesin thisreporttoearningspersharearebasedonaverage dilutedcommonsharesoutstanding.
OVERVIEWIn2014,Amerensuccessfullyexecuteditsstrategytoinvestinandtogrowitsutilitiesthroughinvestmentinrate-regulatedinfrastructurewhileremainingfocusedon operationalimprovementanddisciplinedcostmanagement, leadingtoanimprovedearnedreturnonequity.During 2014,Amerencontinuedtomakeprogressonthethree elementsofitsstrategy:(1)toinvestinandtooperateits utilitiesinamannerconsistentwithexistingregulatory frameworks;(2)toenhanceregulatoryframeworksandto advocateforresponsibleenergypolicies;and(3)tocreate andtocapitalizeonopportunitiesforinvestmentforthe benefitofitscustomersandshareholders.Theseresults, alongwithconfidenceinAmeren'slong-termoutlook,led theboardofdirectorstoincreaseAmeren'squarterly dividendrateinOctober2014.In2014,AmerenMissouricompletedseveralkeyinfrastructureprojects,includinganuclearreactorvessel headreplacementprojectattheCallawayenergycenter, electrostaticprecipitatorupgradesatthecoal-firedLabadie energycenter,anewsubstationinSt.Louis,andthe O'Fallonenergycenter.InJuly2014,AmerenMissourifiled arequestwiththeMoPSCseekingapprovaltoincreaseits annualrevenuesforelectricservice.Therequest,as amendedinFebruary2015,seeksanannualrevenue increaseofapproximately$190million.InFebruary2015, theMoPSCstaffrecommendedanincreaseinannual revenuesof$89millioninthisproceeding.Adecisionby theMoPSCisexpectedbyMay2015,withnewrates effectivebyJune2015.Additionally,inDecember2014, AmerenMissourifiledanewproposedenergyefficiency planwiththeMoPSCundertheMEEIAfor2016through
2018.AmerenMissouricontinuestoseekamodernizedregulatoryframeworkthatreducesregulatorylagandsupportsincreasedinvestmenttoupgradeagingelectric infrastructureandtoadvocateforresponsibleenergy policies,notablyintheenvironmentalarena.InOctober 2014,AmerenMissourifileditsintegratedresourceplan withtheMoPSCwhichtargetstoachievetheCO 2 emissionsreductionsproposedintheEPA'sCleanPowerPlanby 2035,ratherthantheEPA'sfinaltargetdateof2030orits interimtargetdatesbeginningin2020.AmerenMissouri's planoutlineditsongoingtransitiontoamorefuel-diverse generationportfoliooverthenext20years,whichit believesmaximizestheuseofitscurrentgenerationfleetfor thebenefitofitscustomerswhileleveragingenergy efficiency,environmentalcontrols,renewableenergy resources,andlowercostgenerationtomeetfutureneeds.AmerenIllinoiscontinuedtoimplementitselectricandnaturalgasdistributionsystemmodernizationactionplan, includingtheinstallationofadvancedelectricandupgraded naturalgasmeters.InDecember2014,theICCauthorized anelectricdeliveryservicerateincreasethatwaswithin
$1millionofAmerenIllinois'revisedrequest,which demonstratedthattheformularatemakingframeworkis workingasintended.InJanuary2015,AmerenIllinoisfiled arequestwiththeICCseekingapprovaltoincreaseits annualrevenuesfornaturalgasdeliveryserviceby
$53million.AdecisionbytheICCinthisproceedingis requiredbyDecember2015,withnewratesexpectedtobe effectiveinJanuary2016.AlsoinJanuary2015,Ameren IllinoisreceivedapprovalforitsQIPriderundertheCSRA andsubsequentlybeganincludingqualifiedinvestments andrecordingrevenueunderthisregulatoryframework.
AmerenIllinoiswillstartrecoveringcostsfromthese investmentsinMarch2015.AmerenIllinoiscontinuestoseekenhancementstoitsregulatoryframeworks.Onthisfront,legislationwaspassed bytheIllinoisGeneralAssembly,whichisawaitingthe governor'sapproval,thatwouldextendtheIEIMA'sformula ratemakingframeworkuntiltheendof2019withfurther extensionpossiblethrough2022.Additionally,inits January2015naturalgasdeliveryserviceraterequest, AmerenIllinoisproposedtoimplementadecouplingrider mechanismforresidentialandsmallnonresidential customersthatwouldensurethatchangesinsalesvolumes donotaffectAmerenIllinois'annualnaturalgasrevenues forthesecustomers.InadditiontotheAmerenMissouriinvestmentsdiscussedabove,Amereninvestedmorethan$1billionin AmerenIllinoiselectricandnaturalgasdeliveryservice infrastructureandFERC-regulatedelectrictransmission serviceinfrastructurein2014.Amerencontinuestofocus oncreatingandcapitalizingonopportunitiesforinvestment forthebenefitofitscustomersandshareholders.Tothat end,Amerenidentifiedneededreliabilityprojectswithin AmerenMissouri'sandAmerenIllinois'serviceterritories whilepursuingcompetitiveelectrictransmissioninvestment opportunitiesbothwithinandoutsideoftheseservice territories,includinginvestmentsoutsideofMISO, leveragingpastsuccessasanexperiencedtransmission 32 developerandoperator.Consistentwithpreviousplans,Amerenintendstoallocatesignificantandincreasing amountsofdiscretionarycapitaltoFERC-regulatedelectric transmissionserviceprojectsandAmerenIllinoiselectric andnaturalgasdeliveryserviceprojects.Amerenplansto invest$2.3billioninFERC-regulatedelectrictransmission projectsfrom2015through2019,with$1.3billioninvested byATXIandtheremaining$1billionbyAmerenIllinois.InNovember2013,acustomergroupfiledacomplaintcasewiththeFERCseekingareductioninthe12.38%
allowedbasereturnoncommonequityundertheMISO tariff.InJanuary2015,theFERCscheduledthecasefor hearings,requiringaninitialdecisiontobeissuednolater thanNovember30,2015.Astheoriginal15-monthrefund periodendedinFebruary2015,anothercustomercomplaint casewasfiledinFebruary2015,seekingareductioninthe allowedbasereturnoncommonequity.Inthefourth quarterof2014,Amerenrecordedareserverepresentingits estimateofthepotentialrefundfromNovember2013 throughDecember31,2014.InNovember2014,wefiledarequestwiththeFERCtoincludeanincentiveadderofupto50basispointsonthe allowedbasereturnoncommonequityforparticipationin anRTO.FERCapprovedtherequesttoimplementthe incentiveadderprospectivelyfromJanuary6,2015,andto defercollectionoftheincentiveadderuntiltheissuanceof thefinalorderaddressingtheinitialMISOcase.
EarningsAmerenreportednetincomeof$586million,or$2.40perdilutedshare,for2014,and$289million,or$1.18perdilutedshare,for2013.NetincomeattributabletoAmeren Corporationfromcontinuingoperationswas$587million, or$2.40perdilutedshare,for2014,and$512million,or
$2.10perdilutedshare,for2013.Ameren'searningsfrom continuedoperationsincreasedin2014,comparedwith 2013,dueinparttoincreasedelectricdeliveryservice earningsatAmerenIllinoisandincreasedelectric transmissionearningsatAmerenIllinoisandATXI,which includedareserveforapotentialreductionintheFERC-allowedreturnonequityforelectrictransmissionservices.
Additionally,earningsfromcontinuingoperationswere favorablyaffectedbyincreasedratesforAmerenIllinois' naturalgasdeliveryservice,effectiveJanuary2014,aswell asdecreasedinterestchargesresultingfromhigher-cost debtbeingreplacedwithlower-costdebt.Interestcharges alsodeclinedin2014,comparedwith2013,asaresultof theICC'sDecember2014orderallowingpartialrecoveryof certainpreviouslydisalloweddebtpremiumcosts,which werechargedtoearningsin2013.Theabsencein2014ofa reductioninAmerenMissourirevenuesresultingfroma July2013MoPSCorderthatrequiredarefundtocustomers fortheearningsassociatedwithcertainlong-termpartial requirementssalesrecognizedfortheperiodfrom October1,2009,toMay31,2011,alsopositivelyaffected earningscomparisons.Ameren'searningsfromcontinuing operationswerenegativelyaffectedbyincreased depreciationandamortizationexpenses,ahighereffectiveincometaxrate,andincreasedotheroperationsand maintenanceexpenses.
LiquidityCashgeneratedbyoperatingactivitiesassociatedwithcontinuingoperationsof$1.6billion,short-termborrowings,andavailablecashonhandwereusedtofund capitalexpendituresof$1.8billionandtopaydividendsto commonstockholdersof$390million.AtDecember31, 2014,Ameren,onaconsolidatedbasis,hadavailable liquidity,intheformofcashonhandandamountsavailable underexistingcreditagreements,of$1.4billion.CapitalSpendingIn2014,Amerenmadesignificantinvestmentsinitsutilities.Itexpectsthattrendtocontinueintothefuture.From2015through2019,Ameren'scumulativecapital spendingisprojectedtorangebetween$8.6billionand
$9.3billion.Theprojectedspendingincludesapproximately
$3.7billion,$3.8billion,and$1.3billionforAmeren Missouri,AmerenIllinois,andATXI,respectively.RESULTSOFOPERATIONSOurresultsofoperationsandfinancialpositionareaffectedbymanyfactors.Weather,economicconditions,andtheactionsofkeycustomerscansignificantlyaffectthe demandforourservices.Ourresultsarealsoaffectedby seasonalfluctuationsinwinterheatingandsummercooling demands.AlmostallofAmeren'srevenuesaresubjectto stateorfederalregulation.Thisregulationhasamaterial impactonthepriceswechargeforourservices.Ameren Missouriprincipallyusescoal,nuclearfuel,andnaturalgas forfuelinitsoperations.Thepricesforthesecommodities canfluctuatesignificantlybecauseoftheglobaleconomic andpoliticalenvironment,weather,supplyanddemand, andmanyotherfactors.Wehavenaturalgascostrecovery mechanismsforourIllinoisandMissourinaturalgas deliveryservicebusinesses,apurchasedpowercost recoverymechanismforAmerenIllinois'electricdelivery servicebusiness,andaFACforAmerenMissouri'selectric utilitybusiness.AmerenIllinois'electricdeliveryservice utilitybusiness,pursuanttotheIEIMA,conductsanannual reconciliationoftherevenuerequirementnecessaryto reflecttheactualcostsincurredinagivenyearwiththe revenuerequirementincludedincustomerratesforthat year,withrecoveriesfromorrefundstocustomersmadein asubsequentyear.IncludedinAmerenIllinois'revenue requirementreconciliationisaformulaforthereturnon equity,whichisequaltotheaverageofthemonthlyyields of30-yearUnitedStatesTreasurybondsplus580basis points.Therefore,AmerenIllinois'annualreturnonequityis directlycorrelatedtoyieldsonUnitedStatesTreasury bonds.AmerenIllinoisandATXIhavereceivedFERC approvaltouseacompany-specific,forward-lookingrate formulaframeworkinsettingtheirtransmissionrates.
Theseforward-lookingratesareupdatedeachJanuarywith forecastedinformation.Areconciliationduringtheyear, whichadjustsfortheactualrevenuerequirementandactual 33 salesvolumes,isusedtoadjustbillingratesinasubsequentyear.Fluctuationsininterestratesand conditionsinthecapitalandcreditmarketsalsoaffectour costofborrowingandourpensionandpostretirement benefitscosts.Weemployvariousriskmanagement strategiestoreduceourexposuretocommodityriskand otherrisksinherentinourbusiness.Thereliabilityof AmerenMissouri'senergycentersandourtransmission anddistributionsystemsandthelevelofpurchasedpower costs,operationsandmaintenancecosts,andcapital investmentarekeyfactorsthatweseektooptimizeour resultsofoperations,financialposition,andliquidity.EarningsSummaryThefollowingtablepresentsasummaryofAmeren'searningsfortheyearsendedDecember31,2014,2013,and 2012:201420132012Netincome(loss)attributabletoAmeren Corporation
......................$586$289$(974)Earnings(loss)percommonshare-diluted..........................
2.401.18(4.01)NetincomeattributabletoAmerenCorporation-continuingoperations...
587512516Earningspercommonshare-diluted-continuingoperations
..............
2.402.102.132014versus2013NetincomeattributabletoAmerenCorporationfromcontinuingoperationsin2014increased$75million,or$0.30perdilutedshare,from2013.Theincreasewasdue toa$41millionincreaseinnetincomefromtheAmeren Illinoissegmentanda$39milliondecreaseinnetlossfrom Ameren(parent)andnonregistrantsubsidiariespartially offsetbya$5milliondecreaseinnetincomefromthe AmerenMissourisegment.Comparedwith2013,2014earningspersharefromcontinuingoperationswerefavorablyaffectedby:
highernaturalgasratesatAmerenIllinoispursuanttoaDecember2013order(8centspershare);
decreasedinterestexpense,excludingtheeffectsofthe ICC'sDecember2014orderdiscussedbelow,primarily duetothematurityofhigher-costdebtreplacedwith issuancesoflower-costdebt(8centspershare);
theabsencein2014ofareductioninAmerenMissouri revenuesresultingfromaJuly2013MoPSCorderthat requiredarefundtocustomersassociatedwithcertain long-termpartialrequirementssalesrecognizedfrom October1,2009,toMay31,2011(7centspershare);
theICC'sDecember2014orderallowingpartial recoveryofcertainpreviouslydisalloweddebtpremium coststhatwerechargedtoearningsin2013(7cents pershare);
anincreaseinAmerenIllinois'andATXI'selectric transmissionearningsunderformularatemakingdueto additionalratebaseinvestment,partiallyoffsetbyareserveforapotentialrefundtocustomersduetoa reductionintheFERC-allowedreturnonequity(6cents pershare).ATXI'snetincomewas$13million(5cents pershare)and$7million(3centspershare)in2014 and2013,respectively; anincreaseinAmerenIllinois'electricdeliveryservice earningsunderformularatemakingpursuanttothe IEIMAduetoincreasedratebaseinvestment(estimated at5centspershare);
higherrevenuesassociatedwithAmerenMissouri's MEEIAlostrevenuerecoverymechanism(4centsper share),whichwerepartiallyoffsetbylowerrevenues resultingfromreduceddemandduetocustomer energyefficiencyprograms;and increasedelectricandnaturalgasdemandprimarily resultingfromcolderwintertemperaturesinearly2014 andwarmerearlysummertemperatures(estimatedat 1centpershare).Comparedwith2013,2014earningspersharefromcontinuingoperationswereunfavorablyaffectedby:
increaseddepreciationandamortizationexpenses,primarilyresultingfromelectricdistributioncapital additionsatAmerenMissouri(5centspershare);
anincreaseintheeffectivetaxrate(4centspershare);
andincreasedotheroperationsandmaintenanceexpenses forAmerenMissouriandforAmerenIllinois'natural gasbusiness,primarilyduetoincreasedlaborand litigationcosts,offsetinpartbydecreasedcostsat Ameren(parent),primarilyresultingfromthe substantialeliminationofcostspreviouslyincurredin supportofthedivestedmerchantgenerationbusiness (3centspershare).Thecentspershareinformationpresentedaboveisbasedonthedilutedaveragesharesoutstandingin2013.2013versus2012NetincomeattributabletoAmerenCorporationfromcontinuingoperationsin2013decreased$4million,or$0.03perdilutedshare,from2012.Thedecreasewasdue toa$21milliondecreaseinnetincomefromtheAmeren Missourisegmentanda$2millionincreaseinnetlossfrom Ameren(parent)andnonregistrantsubsidiaries,partially offsetbya$19millionincreaseinnetincomefromthe AmerenIllinoissegment.Comparedwith2012,2013earningspersharefromcontinuingoperationswereunfavorablyaffectedby:
thecostoftheCallawayenergycenter'sscheduledrefuelingandmaintenanceoutagein2013.Therewas noCallawayrefuelingandmaintenanceoutagein2012 (10centspershare);
areductioninAmerenMissourirevenuesresulting fromaJuly2013MoPSCorderthatrequiredarefund tocustomersassociatedwithcertainlong-termpartial requirementssalesrecognizedfortheperiodfrom October1,2009,toMay31,2011(7centspershare);
34 theabsencein2013ofareductioninAmerenMissouri'spurchasedpowerexpenseandanincrease ininterestincome,eachasaresultofaFERC-ordered refundreceivedin2012fromEntergyforapower purchaseagreementthatexpiredin2009(7centsper
share);decreasedelectricdemandresultingfromsummer temperaturesin2013thatweremilderthanthe warmer-than-normaltemperaturesin2012,partially offsetbyincreasedelectricandnaturalgasdemand resultingfromwintertemperaturesin2013thatwere colderthanwintertemperaturesin2012(estimatedat 6centspershare);
theICC'sDecember2013ordersdisallowingrecovery ofaportionofthepremiumpaidbyAmerenIllinoisfor atenderofferinAugust2012torepurchasesenior securednotes(4centspershare);and increaseddepreciationprimarilyduetoinfrastructure additionsatAmerenMissouri(3centspershare).Comparedwith2012,2013earningspersharefromcontinuingoperationswerefavorablyaffectedby:
higherAmerenMissouriutilityratespursuanttoanorderissuedbytheMoPSC,whichbecameeffectivein January2013,partiallyoffsetbyincreasedregulatoryassetamortizationasdirectedbytherateorder.This excludesMEEIAimpacts,whicharediscussed separatelybelow(12centspershare);
higherrevenuesassociatedwithAmerenMissouri's MEEIAlostrevenuerecoverymechanism(9centsper share),whichwerepartiallyoffsetbylowerrevenues resultingfromreduceddemandduetocustomer energyefficiencyprograms; higherelectrictransmissionratesatAmerenIllinoisand ATXI(8centspershare);and anincreaseinAmerenIllinois'electricdeliveryservice earningsunderformularatemaking,favorablyaffected primarilybyanincreasedratebase,ahigherallowed returnonequity,andlowerrequiredcontributions pursuanttotheIEIMA(estimatedat8centspershare).Thecentspershareinformationpresentedaboveisbasedonthedilutedaveragesharesoutstandingin2012.ForadditionaldetailsregardingtheAmerenCompanies'resultsofoperations,includingexplanationsof Margins,OtherOperationsandMaintenanceExpenses, DepreciationandAmortization,TaxesOtherThanIncome Taxes,OtherIncomeandExpenses,InterestCharges, IncomeTaxes,andIncome(Loss)fromDiscontinued Operations,NetofTaxes,seethemajorheadingsbelow.
35 BelowisatableofincomestatementcomponentsbysegmentfortheyearsendedDecember31,2014,2013,and2012:
2014 Ameren Missouri Ameren IllinoisOther/IntersegmentEliminationsTotalElectricmargins
...........................................................$2,443$1,179$11$3,633Naturalgasmargins
.......................................................82443-525Otherrevenues
...........................................................1-(1)-Otheroperationsandmaintenance
............................................(946)(771)26(1,691)Depreciationandamortization
................................................(473)(263)(9)(745)Taxesotherthanincometaxes
...............................................(322)(138)(8)(468)Otherincome
.............................................................489-57Interestcharges
...........................................................(211)(112)(18)(341)Incometaxes
.............................................................(229)(143)(5)(377)Income(loss)fromcontinuingoperations
......................................393204(4)593Lossfromdiscontinuedoperations,netoftaxes
..................................--(1)(1)Netincome(loss)
.........................................................393204(5)592Netincomeattributabletononcontrollinginterests-continuingoperations
.............(3)(3)-(6)Netincome(loss)attributabletoAmerenCorporation
.............................$390$201$(5)$586 2013Electricmargins...........................................................$2,407$1,081$(3)$3,485Naturalgasmargins.......................................................83399(2)480Otherrevenues...........................................................13(4)-Otheroperationsandmaintenance
............................................(915)(693)(9)(1,617)Depreciationandamortization
................................................(454)(243)(9)(706)Taxesotherthanincometaxes
...............................................(319)(132)(7)(458)Otherincomeand(expenses)................................................471(5)43Interestcharges
...........................................................(210)(143)(45)(398)Income(taxes)benefit
......................................................(242)(110)41(311)Income(loss)fromcontinuingoperations......................................398163(43)518Lossfromdiscontinuedoperations,netoftaxes..................................--(223)(223)Netincome(loss).........................................................398163(266)295Netincomeattributabletononcontrollinginterests-continuingoperations.............(3)(3)-(6)Netincome(loss)attributabletoAmerenCorporation.............................$395$160$(266)$289 2012Electricmargins...........................................................$2,340$1,034$(11)$3,363Naturalgasmargins.......................................................75378(1)452Otherrevenues...........................................................1-(1)-Otheroperationsandmaintenance
............................................(827)(684)-(1,511)Depreciationandamortization
................................................(440)(221)(12)(673)Taxesotherthanincometaxes
...............................................(304)(130)(9)(443)Otherincomeand(expenses)................................................49(10)(6)33Interestcharges
...........................................................(223)(129)(40)(392)Income(taxes)benefit
......................................................(252)(94)39(307)Income(loss)fromcontinuingoperations......................................419144(41)522Lossfromdiscontinuedoperations,netoftaxes..................................--(1,496)(1,496)Netincome(loss).........................................................419144(1,537)(974)Netincomeattributabletononcontrollinginterests-continuingoperations.............(3)(3)-(6)Netlossattributabletononcontrollinginterests-discontinuedoperations.............--
6 6Netincome(loss)attributabletoAmerenCorporation.............................$416$141$(1,531)$(974) 36 MarginsThefollowingtablepresentsthefavorable(unfavorable)variationsbysegmentforelectricandnaturalgasmarginsfromthepreviousyear.Electricmarginsaredefinedaselectricrevenueslessfuelandpurchasedpowercosts.Naturalgasmarginsaredefinedasgasrevenueslessgaspurchasedforresale.ThetablecoverstheyearsendedDecember31,2014,2013,and 2012.Weconsiderelectricandnaturalgasmarginsusefulmeasurestoanalyzethechangeinprofitabilityofourelectricand naturalgasoperationsbetweenperiods.Wehaveincludedtheanalysisbelowasacomplementtothefinancialinformationwe provideinaccordancewithGAAP.However,thesemarginsmaynotbeapresentationdefinedunderGAAP,andtheymaynot becomparabletoothercompanies'presentationsormoreusefulthantheGAAPinformationweprovideelsewhereinthis
report.2014versus2013 Ameren Missouri AmerenIllinoisOther (a)AmerenElectricrevenuechange:Effectofweather(estimate)(b)......................................................$8$(5)$-$3Baserates(estimate).............................................................-56-56Off-systemsalesandtransmissionservicesrevenues(includedinbaserates)
.................(12)--(12)RecoveryofFACunder-recovery (c)..................................................(14)--(14)FACprudencereviewchargein2013................................................25--25MEEIA(energyefficiency)recoverymechanisms.......................................22--22Transmissionservicesrevenues....................................................-351853Illinoispass-throughpowersupplycosts.............................................-(38)-(38)Reserveforpotentialtransmissionrefunds............................................-(21)(4)(25)Baddebt,energyefficiencyprograms,andenvironmentalremediationcostriders..............-25-25Salesvolume(excludingtheestimatedeffectofabnormalweather)
.........................(22)3-(19)
Other.........................................................................26(3)5Totalelectricrevenuechange........................................................$9$61$11$81Fuelandpurchasedpowerchange:Energycostsincludedinbaseratesandother..........................................$18$-$3$21Effectofweather(estimate)(b)......................................................(5)--(5)RecoveryofFACunder-recovery (c)..................................................14--14Transmissionservicesexpenses....................................................-(1)-(1)Illinoispass-throughpowersupplycosts.............................................-38-38Totalfuelandpurchasedpowerchange................................................$27$37$3$67Netchangeinelectricmargins
......................................................$36$98$14$148Naturalgasrevenuechange:Effectofweather(estimate)(b)......................................................$6$32$-$38Baserates(estimate).............................................................-32-32Baddebt,energyefficiencyprograms,andenvironmentalremediationcostriders..............-4-4Grossreceiptstax...............................................................-3-3Pass-throughpurchasedgascosts..................................................(1)57-56Salesvolume(excludingtheeffectofabnormalweather)andother.........................(2)121Totalnaturalgasrevenuechange.....................................................$3$129$2$134Gaspurchasedforresalechange:Effectofweather(estimate)(b)......................................................$(5)$(28)$-$(33)Pass-throughpurchasedgascosts..................................................1(57)-(56)Totalgaspurchasedforresalechange.................................................$(4)$(85)$-$(89)Netchangeinnaturalgasmargins
...................................................$(1)$44$2$45 37 2013versus2012 Ameren Missouri AmerenIllinoisOther (a)AmerenElectricrevenuechange:Effectofweather(estimate)(b)......................................................$(29)$(20)$-$(49)Baserates(estimate).............................................................17857-235Off-systemsalesandtransmissionservicesrevenues(includedinbaserates).................11--11TransmissionservicesrevenueexcludedfromFACuntil2013
.............................(32)-(32)RecoveryofFACunder-recovery (c)..................................................67--67FACprudencereviewcharge
.......................................................(25)--(25)MEEIA(energyefficiency)recoverymechanisms.......................................72--72Transmissionservicesrevenues....................................................-251035Grossreceiptstax...............................................................12--12Illinoispass-throughpowersupplycosts.............................................-(316)-(316)HurricaneSandyreliefrecovery.....................................................(7)(10)-(17)Baddebt,energyefficiencyprograms,andenvironmentalremediationcostriders..............-(15)-(15)Salesvolume(excludingtheestimatedeffectofabnormalweather).........................42-6 Other.........................................................................(4)(1)(4)(9)Totalelectricrevenuechange........................................................$247$(278)$6$(25)Fuelandpurchasedpowerchange:Energycostsincludedinbaseratesandother..........................................$(88)$-$2$(86)Effectofweather(estimate)(b)......................................................(1)9-8RecoveryofFACunder-recovery (c)..................................................(67)--(67)FERC-orderedpowerpurchasesettlement
.............................................(24)--(24)Illinoispass-throughpowersupplycosts.............................................-316-316Totalfuelandpurchasedpowerchange................................................$(180)$325$2$147Netchangeinelectricmargins
......................................................$67$47$8$122Naturalgasrevenuechange:Effectofweather(estimate)(b)......................................................$29$110$-$139Baserates(estimate).............................................................-2-2HurricaneSandyreliefrecovery.....................................................-(3)-(3)Grossreceiptstax...............................................................17-8Pass-throughpurchasedgascosts
..................................................(12)(56)-(68)Salesvolume(excludingtheeffectofabnormalweather)andother.........................41(1)4Totalnaturalgasrevenuechange.....................................................$22$61$(1)$82Gaspurchasedforresalechange:Effectofweather(estimate)(b)......................................................$(26)$(96)$-$(122)Pass-throughpurchasedgascosts..................................................1256-68Totalgaspurchasedforresalechange.................................................$(14)$(40)$-$(54)Netchangeinnaturalgasmargins
...................................................$8$21$(1)$28(a)PrimarilyincludesamountsforATXIandintercompanyeliminations.(b)Representstheestimatedvariationresultingprimarilyfromtheeffectsofchangesincoolingandheatingdegree-daysonelectricandnaturalgasdemandcomparedwiththeprioryear;thisisbasedontemperaturereadingsfromtheNationalOceanicandAtmosphericAdministration weatherstationsatlocalairportsinourserviceterritories.(c)RepresentsthechangeinthenetenergycostsrecoveredundertheFACthroughcustomerrates,withcorrespondingoffsetstofuelexpenseduetotheamortizationofapreviouslyrecordedregulatoryasset.2014versus2013AmerenCorporationAmeren'selectricmarginsincreased$148million,or4%,in2014comparedwith2013.Ameren'snaturalgasmarginsincreased$45million,or9%,in2014compared with2013.TheseresultswereprimarilydrivenbyAmeren MissouriandAmerenIllinoisresults,asdiscussedbelow.
Ameren'selectricmarginsalsoreflecttheresultsof operationsofATXI.ATXI'stransmissionrevenuesincreased
$14millionin2014comparedwith2013,reflecting increasedratebaseinvestmentandrecoverablecostsunder forward-lookingformularatemaking.AmerenMissouriAmerenMissourihasaFACcostrecoverymechanismthatallowsAmerenMissouritorecover,throughcustomer rates,95%ofchangesinnetenergycostsgreaterorless thantheamountsetinbaserateswithoutatraditionalrate proceeding,subjecttoMoPSCprudencereview.Netenergy costsincludefuelandpurchasedpowercosts,including transportationchargesandrevenues,netofoff-system sales.AmerenMissouriaccrues,asaregulatoryasset,net energycoststhatexceedtheamountsetinbaserates(FAC under-recovery).Netrecoveryofthesecoststhrough customerratesdoesnotaffectAmerenMissourielectric margins,asincreasesinrevenueareoffsetbya 38 correspondingincreaseinfuelexpensetoreducethepreviouslyrecognizedFACregulatoryasset.AmerenMissouri'selectricmarginsincreased$36million,or1%,in2014comparedwith2013.The followingitemshadafavorableeffectonAmeren Missouri'selectricmargins:
Theabsencein2014ofaJuly2013MoPSCFACprudencerevieworder,whichdecreased2013revenues by$25million.AmerenMissourirecordedaFAC prudencereviewchargein2013foritsestimated obligationtorefundtoitselectriccustomersthe earningsassociatedwithsalesrecognizedbyAmeren MissourifromOctober1,2009,toMay31,2011.See Note2-RateandRegulatoryMattersunderPartII, Item8,ofthisreportforadditionalinformation regardingtheFACprudencereviewcharge.
HigherrevenuesassociatedwiththeMEEIAenergy efficiencyprogramcostrecoverymechanismandlost revenuerecoverymechanism($7millionand
$15million,respectively),whichincreasedrevenuesby acombined$22million.Thehigherrevenueswere drivenbygreatercustomerparticipationinthesecond yearoftheMEEIAprogram,whichledtohigher recoveryoflostrevenues.Thelostrevenuerecovery mechanismhelpscompensateAmerenMissourifor lowersalesvolumesfromenergy-efficiency-related volumereductionsincurrentandfutureperiods.See OtherOperationsandMaintenanceExpensesinthis sectionfortherelatedoffsettingincreaseincustomer energyefficiencyprogramcosts.
Wintertemperaturesin2014thatwerecolderthanin 2013,asheatingdegree-daysincreased5%,which resultedinhighersalesvolumesandcontributedtoan estimated$3millionincreaseinmargins.Thechangein weathermarginisthesumoftheeffectofweatherin electricrevenues(+$8million)andtheeffectofweather infuelandpurchasedpower(-$5million)intheabove
table.AmerenMissouri'selectricmarginswereunfavorablyaffectedbylowersalesvolumesprimarilycausedbythe MEEIAprograms.Lowersalesvolumesfromenergy-efficiency-relatedvolumereductionsareoffsetbytheMEEIA lostrevenuerecoverymechanism.Excludingtheestimated effectofabnormalweather,totalretailsalesvolumes decreased1%,whichdecreasedrevenuesbyanestimated
$22million,partiallyoffsetbyadecreaseinnetenergycosts of$6million.Thedecreaseinnetenergycostsisthesumof thechangeinenergycostsincludedinbaserates
(+$18million)andthechangeinoff-systemsalesand transmissionservicesrevenues(-$12million)intheabove
table.AmerenMissourihasacostrecoverymechanismfornaturalgaspurchasedonbehalfofitscustomers.These pass-throughpurchasedgascostsdonotaffectAmeren Missouri'snaturalgasmarginsastheyareoffsetbya correspondingamountinrevenues.AmerenMissouri'snaturalgasmarginswerecomparablebetweentheyears.AmerenIllinoisAmerenIllinoishasacostrecoverymechanismforpowerpurchasedonbehalfofitscustomers.Thesepass-throughpowersupplycostsdonotaffectAmerenIllinois' electricmargins,astheyareoffsetbyacorresponding amountinrevenues.AmerenIllinoisparticipatesintheIEIMA'sperformance-basedformularatemakingframework.The IEIMAprovidesforanannualreconciliationoftheelectric deliveryservicerevenuerequirementnecessarytoreflect theactualcostsincurredinagivenyearwiththerevenue requirementincludedincustomerratesforthatyear, includinganallowedreturnonequity.SeeOtherOperations andMaintenanceExpensesinthissectionforadditional informationregardingtherevenuerequirement.Ifthe currentyear'srevenuerequirementisgreaterthanthe revenuerequirementreflectedinthatyear'scustomerrates, anincreasetoelectricoperatingrevenueswithanoffsettoa regulatoryassetisrecordedtoreflecttheexpectedrecovery ofthoseadditionalcostsfromcustomerswithinthenext twoyears.Ifthecurrentyear'srevenuerequirementisless thantherevenuerequirementreflectedinthatyear's customerrates,areductiontoelectricoperatingrevenues withanoffsettoaregulatoryliabilityisrecordedtoreflect theexpectedrefundtocustomerswithinthenexttwoyears.
SeeNote2-RateandRegulatoryMattersunderPartII, Item8,ofthisreportforadditionalinformationregarding AmerenIllinois'revenuerequirementreconciliation pursuanttotheIEIMA.AmerenIllinois'electricmarginsincreased$98million,or9%,in2014comparedwith2013.Thefollowingitems hadafavorableeffectonAmerenIllinois'electricmargins:
Electricdeliveryservicerevenuesthatincreasedbyanestimated$56million,primarilycausedbyincreased ratebaseandhigherrecoverablecostsunderformula ratemakingpursuanttotheIEIMA.
Transmissionservicesmarginthatincreasedby
$34million,largelyduetoahighertransmission servicesrevenuerequirement,drivenprimarilyby increasedratebaseinvestment.Thechangein transmissionservicesmarginisthesumofthechange intransmissionservicesrevenues(+$35million)and thechangeintransmissionservicesexpenses
(-$1million)intheabovetable.
Anetincreaseinrecoveryofbaddebtcharge-offs, customerenergyefficiencyprogramcosts,and environmentalremediationcoststhroughrate-adjustmentmechanisms,whichincreasedrevenuesby
$25million.SeeOtherOperationsandMaintenance Expensesinthissectionfortherelatedoffsettingnet increaseinbaddebt,customerenergyefficiency,and environmentalremediationcosts.
Excludingtheestimatedeffectofabnormalweather, residentialretailsalesvolumesthatincreased1%,
whichincreasedrevenuesby$3million.
39 ThefollowingitemshadanunfavorableeffectonAmerenIllinois'electricmarginsin2014comparedwith 2013:ReservesrecordedforestimatedrefundsregardingFERCproceedingsfromaNovember2013complaint caseseekingareductionintheallowedbasereturnon commonequityfortheMISOtariff,aJune2014order regardingacquisitionpremiums,andothermatters, whichdecreasedrevenuesby$21million.SeeNote2-RateandRegulatoryMattersunderPartII,Item8,of thisreportforadditionalinformation.
Summertemperaturesin2014thatweremilderthanin 2013,ascoolingdegree-daysdecreased6%,which resultedinlowersalesvolumesandcontributedtoan estimated$5millionreductioninrevenues.AmerenIllinoishasacostrecoverymechanismfornaturalgaspurchasedonbehalfofitscustomers.These pass-throughpurchasedgascostsdonotaffectAmeren Illinois'naturalgasmarginsastheyareoffsetbya correspondingamountinrevenues.AmerenIllinois'naturalgasdeliveryservicemarginsincreased$44million,or11%,in2014comparedwith 2013.ThefollowingitemshadafavorableeffectonAmeren Illinois'naturalgasmargins:
HighernaturalgasdeliveryservicerateseffectiveJanuary2014,whichincreasedrevenuesbyan estimated$32million.
Wintertemperaturesin2014thatwerecolderthanin 2013asheatingdegree-daysincreased6%,which resultedinhighersalesvolumesandincreasedmargins byanestimated$4million.Thechangeinweather marginisthesumoftheeffectofweatherinrevenues
(+$32million)andtheeffectofweatheringas purchasedforresale(-$28million)intheabovetable.
Increasedgrossreceiptstaxesduetohighernatural gasratesandhighersalesvolumesasaresultofcolder wintertemperaturesin2014,whichincreasedrevenues by$3million.SeeTaxesOtherThanIncomeTaxesin thissectionfortherelatedoffsettingincreasetogross receiptstaxes.
A$4millionnetincreaseinrecoveryofbaddebt charge-offs,customerenergyefficiencyprogramcosts, andenvironmentalremediationcoststhroughrate-adjustmentmechanisms.SeeOtherOperationsand MaintenanceExpensesinthissectionfortherelated offsettingnetincreaseinbaddebt,customerenergy efficiency,andenvironmentalremediationcosts.2013versus2012AmerenCorporationAmeren'selectricmarginsincreased$122million,or4%,in2013comparedwith2012.Ameren'snaturalgas marginsincreased$28million,or6%,in2013compared with2012.TheseresultswereprimarilydrivenbyAmeren MissouriandAmerenIllinoisresults,asdiscussedbelow.
Ameren'selectricmarginsalsoreflecttheresultsofoperationsofATXI.ATXI'stransmissionrevenuesincreased
$10millionin2013comparedwith2012,duetothe inclusionofits2013ratebaseinvestmentandrecoverable costsunderforward-lookingformularatemaking.AmerenMissouriAmerenMissouri'selectricmarginsincreased$67million,or3%,in2013comparedwith2012.ThefollowingitemshadafavorableeffectonAmerenMissouri's electricmargins:
HigherelectricbaserateseffectiveJanuary2013asaresultoftheDecember2012MoPSCelectricrateorder, whichincreasedrevenuesbyanestimated
$178million,partiallyoffsetbyanincreaseinnet energycostsof$78million.Theincreaseinnetenergy costsisthesumofthechangeinenergycostsincluded inbaserates(-$89million)andthechangeinoff-systemsalesandtransmissionservicesrevenues
(+$11million)intheabovetable.Transmission servicesrevenueswereexcludedfromFACuntil2013
($32million).
HigherrevenuesassociatedwiththeMEEIAenergy efficiencyprogramcostrecoverymechanismandlost revenuerecoverymechanism($35millionand
$37million,respectively),effectiveJanuary2013, whichincreasedrevenuesbyacombined$72million.
Thelostrevenuerecoverymechanismhelps compensateAmerenMissouriforlowersalesfrom energy-efficiency-relatedvolumereductionsincurrent andfutureperiods.SeeOtherOperationsand MaintenanceExpensesinthissectionfortherelated offsettingincreaseinenergyefficiencyprogramcosts.
Increasedgrossreceiptstaxes,dueprimarilytothe higherbaserates,whichincreasedrevenuesby
$12million.SeeTaxesOtherThanIncomeTaxesinthis sectionfortherelatedoffsettingincreasetogross receiptstaxes.
Excludingtheestimatedeffectofabnormalweather, totalretailsalesvolumesthatincreased1%,which increasedrevenuesbyanestimated$4million.ThefollowingitemshadanunfavorableeffectonAmerenMissouri'selectricmarginsin2013comparedwith
2012:Summertemperaturesin2013thatweremilderthanthewarmer-than-normaltemperaturesin2012,as coolingdegree-daysdecreased22%,whichresultedin lowersalesvolumesandcontributedtoanestimated
$30milliondecreaseinmargins.Thechangeinweather marginisthesumoftheeffectofweatherinelectric revenues(-$29million)andtheeffectofweatherinfuel andpurchasedpower(-$1million)intheabovetable.
AreductioninrevenuesresultingfromaJuly2013 MoPSCFACorder.AmerenMissourirecordedaFAC prudencereviewchargeforitsestimatedobligationto refundtoitselectriccustomerstheearningsassociated withsalesrecognizedbyAmerenMissourifrom October1,2009,toMay31,2011,whichdecreased revenuesby$25million.SeeNote2-Rateand 40 RegulatoryMattersunderPartII,Item8,ofthisreportforadditionalinformationregardingtheFACprudence reviewcharge.
Theabsencein2013ofareductioninpurchasedpower expenseasaresultofaFERC-orderedrefundreceived in2012fromEntergyforapowerpurchaseagreement thatexpiredin2009,whichdecreasedmarginsby
$24million.
Theabsencein2013ofrecoveryoflaborandbenefit costsforcrewsassistingwithHurricaneSandypower restorationin2012,whichdecreasedmarginsby
$7millionandwasfullyoffsetbyarelateddecreasein operationsandmaintenancecosts,withnooverall effectonnetincome.Thecostsrelatedtostorm assistancewerereimbursedbytheutilitiesreceiving theassistance.AmerenMissouri'snaturalgasmarginsincreased$8million,or11%,in2013comparedwith2012.The followingitemshadafavorableeffectonAmerenMissouri's naturalgasmargins:
Excludingthattheestimatedeffectofabnormalweather,revenuesincreasedby$4million,drivenby 11%highernaturalgastransportationsalesand2%
higherretailsales.
Wintertemperaturesin2013thatwerecolderthanthe warmer-than-normaltemperaturesin2012,asheating degree-daysincreased35%,whichresultedinhigher salesvolumesandincreasedmarginsbyanestimated
$3million.Thechangeinweathermarginisthesumof theeffectofweatherinrevenues(+$29million)andthe effectofweatheringaspurchasedforresale
(-$26million)intheabovetable.
Increasedgrossreceiptstaxesduetohighersalesasa resultofcolderwinterweatherin2013comparedwith 2012,whichincreasedrevenuesby$1million.See TaxesOtherThanIncomeTaxesinthissectionforthe relatedoffsettingincreasetogrossreceiptstaxes.AmerenIllinoisAmerenIllinois'electricmarginsincreased$47million,or5%,in2013comparedwith2012.Thefollowingitems hadafavorableeffectonAmerenIllinois'electricmargins:
Electricdeliveryservicerevenuesthatincreasedbyanestimated$57million,primarilycausedbyincreased ratebase,ahigherallowedreturnonequity,andhigher recoverablecostsunderformularatemakingpursuant totheIEIMA.
Transmissionservicesrevenuesthatincreasedby
$25millionduetotheimplementationofa2013 forward-lookingratecalculationwhichincorporatedthe ratebaseincreasein2013,pursuanttoa2012FERC order.In2012,rateswerebasedonahistoricalperiod.ThefollowingitemshadanunfavorableeffectonAmerenIllinois'electricmarginsin2013comparedwith
2012:Adecreaseinrecoveryofbaddebtcharge-offs,customerenergyefficiencyprogramcosts,andenvironmentalremediationcoststhroughrate-adjustmentmechanisms,whichdecreasedrevenuesby
$15million.SeeOtherOperationsandMaintenance Expensesinthissectionfortherelatedoffsetting decreaseinbaddebt,customerenergyefficiency,and environmentalremediationcosts.
Summertemperaturesin2013thatweremilderthan thewarmer-than-normaltemperaturesin2012,as coolingdegree-daysdecreased21%,whichresultedin lowersalesvolumesandcontributedtoanestimated
$11milliondecreaseinmargins.Thechangeinweather marginisthesumoftheeffectofweatherinelectric revenues(-$20million)andtheeffectofweatherinfuel andpurchasedpower(+$9million)intheabovetable.
Theabsencein2013ofrecoveryoflaborandbenefit costsforcrewsassistingwithHurricaneSandypower restorationin2012,whichdecreasedmarginsby
$10millionandwasfullyoffsetbyarelateddecreasein operationsandmaintenancecosts,withnooverall effectonnetincome.Thecostsrelatedtostorm assistancewerereimbursedbytheutilitiesreceiving theassistance.AmerenIllinois'naturalgasmarginsincreased$21million,or6%,in2013comparedwith2012.The followingitemshadafavorableeffectonAmerenIllinois' naturalgasmargins:
Wintertemperaturesin2013thatwerecolderthanwarmer-than-normaltemperaturesin2012,asheating degree-daysincreased29%,whichresultedinhigher salesvolumesandincreasedmarginsbyanestimated
$14million.Thechangeinweathermarginisthesum oftheeffectofweatherinrevenues(+$110million)and theeffectofweatheringaspurchasedforresale
(-$96million)intheabovetable.
Increasedgrossreceiptstaxesduetohighersalesasa resultofcolderwinterweatherin2013comparedwith 2012,whichincreasedrevenuesby$7million.See TaxesOtherThanIncomeTaxesinthissectionforthe relatedoffsettingincreasetogrossreceiptstaxes.
Highernaturalgasdeliveryservicerateseffectiveinlate January2012,whichincreasedrevenuesbyan estimated$2million.AmerenIllinois'naturalgasmarginswereunfavorablyaffectedbytheabsencein2013ofrecoveryoflaborand benefitcostsforcrewsassistingwithHurricaneSandy powerrestorationin2012,whichdecreasedmarginsby
$3millionandwasfullyoffsetbyarelateddecreasein operationsandmaintenancecosts,withnooveralleffecton netincome.OtherOperationsandMaintenanceExpenses2014versus2013AmerenCorporationOtheroperationsandmaintenanceexpensesincreased$74millionin2014comparedwith2013.Otheroperationsandmaintenanceexpensesincreased$31millionatAmeren 41 Missouriandincreased$78millionatAmerenIllinois.PartiallyoffsettingtheincreasesatAmerenMissouriand AmerenIllinoisweredecreasedcorporateexpenses betweenyearsof$35million,primarilyduetothe substantialeliminationofbusinessandadministrativecosts previouslyincurredinsupportofthedivestedmerchant generationbusiness.AmerenMissouriOtheroperationsandmaintenanceexpenseswere$31millionhigherin2014comparedwith2013.Thefollowingitemsincreasedotheroperationsand maintenanceexpensesbetweenyears:
Laborcoststhatincreased$17million,primarilybecauseofwageincreases.
Litigationandasbestosclaimcoststhatincreased
$14milliondue,inpart,totheproceedingsdiscussed inNote2-RateandRegulatoryMattersandNote15-CommitmentsandContingenciesunderPartII,Item8, ofthisreport.
An$8millionincreaseindisposalcostsforlow-level radioactivenuclearwasteattheCallawayenergycenter.
Anincreaseof$7millionincustomerenergyefficiency programcostsduetotheMEEIArequirements.These costswereoffsetbyincreasedelectricrevenuesfrom customerbillings,withnooveralleffectonnetincome.
Areductionof$3millioninunrealizednetMTMgains, resultingfromchangesinthemarketvalueof investmentsusedtosupportAmeren'sdeferred compensationplans.Thefollowingitemsdecreasedotheroperationsandmaintenanceexpensesbetweenyears:
A$13millionreductioninenergycentercosts,primarilyrelatedtocoalhandling.
Adecreaseof$7millioninstorm-relatedcostsdueto fewermajorstormsin2014.
Areductionof$2millioninrefuelingandmaintenance costsassociatedwiththescheduledCallawayoutages.
The2014outagecostswere$36millioncomparedwith 2013outagecostsof$38million.AmerenIllinoisPursuanttotheprovisionsoftheIEIMA,recoverableelectricdeliveryservicecoststhatwereincurredduringthe yearbutnotrecoveredthroughridersareincludedin AmerenIllinois'revenuerequirementreconciliation,which resultsinacorrespondingadjustmenttoelectricoperating revenues,withnooveralleffectonnetincome.These recoverableelectricdeliveryservicecostsincludeother operationsandmaintenanceexpenses,depreciationand amortization,taxesotherthanincometaxes,interest charges,andincometaxes.Otheroperationsandmaintenanceexpenseswere$78millionhigherin2014comparedwith2013.The followingitemsincreasedotheroperationsand maintenanceexpensesbetweenyears:
Anincreaseof$29millioninbaddebt,customerenergyefficiency,andenvironmentalremediationcosts.
TheseexpensesarerecoveredbyAmerenIllinois'rider mechanismsthroughadditionalelectricandnaturalgas revenues,resultinginnooveralleffectonnetincome.
Laborcoststhatincreased$17million,primarily becauseofstaffadditionstomeetenhancedreliability standardsandcustomerservicegoalsrelatedtothe IEIMAandwageincreases.
Anincreaseof$13millioninelectricdistribution maintenanceexpenditures,primarilyrelatedto increasedsystemrepairandvegetationmanagement
work.Asbestosclaimcoststhatincreased$8million.
Anincreaseof$7millionininformationtechnology serviceexpenses,partiallyrelatedtotheIEIMA
implementation.
Anincreaseof$6millioninnaturalgasmaintenance expenditures,primarilyrelatedtopipelineintegrity
compliance.
Anincreaseof$4millioninrentalexpense,primarily relatedtosoftwarefromaffiliatedcompanies.
Areductionof$2millioninunrealizednetMTMgains, resultingfromchangesinthemarketvalueof investmentsusedtosupportAmeren'sdeferred compensationplans.Otheroperationsandmaintenanceexpensesdecreasedbetweenyearsbecauseofareductioninemployeebenefit costsof$12million,primarilyduetolowerpensionand postretirementexpensescausedbychangesinactuarial assumptionsandtheperformanceofplanassets.2013versus2012AmerenCorporationOtheroperationsandmaintenanceexpensesincreased$106millionin2013comparedwith2012.Otheroperations andmaintenanceexpensesincreased$88millionatAmeren Missouriandincreased$9millionatAmerenIllinois.In additiontotheincreasesatAmerenMissouriandAmeren Illinois,corporateexpensesincreased$9millionbetween years,primarilyduetobusinessandadministrativecosts incurredinsupportofthedivestedmerchantgeneration
business.AmerenMissouriOtheroperationsandmaintenanceexpensesincreased$88millionin2013comparedwith2012.Thefollowingitemsincreasedotheroperationsandmaintenance expensesbetweenyears:
Anincreaseof$35millionincustomerenergyefficiencyprogramcostsduetotheMEEIA requirements,whichbecameeffectiveinratesin 42 January2013.Thesecostswereoffsetbyincreasedelectricrevenuesfromcustomerbillings,withno overalleffectonnetincome.
Energycentermaintenancecoststhatincreased
$31million,primarilydueto$38millionincostsforthe scheduled2013Callawayenergycenterrefuelingand maintenanceoutage.Therewasnooutagein2012.The 2013increasewaspartiallyoffsetbya$7million reductionincostsduetofewermajorboileroutagesat coal-firedenergycenters.
Employeebenefitcoststhatincreased$14million, primarilyduetohigherpensionexpenseandincreased amortizationofprior-yearpensiondeferralsfromthe pensionandpostretirementbenefitcosttracker,each asaresultofthe2012MoPSCelectricorder.These costswereoffsetbyincreasedelectricrevenuesfrom customerbillings,withnooveralleffectonnetincome.
Anincreaseof$9millioninstorm-relatedrepaircosts, primarilyduetomajorstormsin2013.Aportionof thesecosts,$7million,wereoffsetbyelectricrevenues fromcustomerbillings.
Anincreaseof$6millioninbaddebtexpensedueto reducedcustomercollectionsandhighercustomer ratesin2013.Otheroperationsandmaintenanceexpensesdecreasedbetweenyearsbecauseoftheabsencein2013ofa
$6millionchargerecordedin2012foracanceledproject.AmerenIllinoisOtheroperationsandmaintenanceexpensesincreased$9millionin2013comparedwith2012.Thefollowingitemsincreasedotheroperationsandmaintenance expensesbetweenyears:
Laborcoststhatincreased$11million,primarilybecauseofstaffadditionstocomplywiththe requirementsoftheIEIMA.
Anincreaseof$8millioninelectricdistribution maintenanceexpenditures,primarilyrelatedto increasedvegetationmanagementwork.
Anincreaseof$3millioninnaturalgasmaintenance expenditures,primarilyrelatedtopipelineintegrity
compliance.Thefollowingitemsdecreasedotheroperationsandmaintenanceexpensesbetweenyears:
Adecreaseof$7millioninbaddebtexpenseduetoadjustmentsunderthebaddebtrider.
Adecreaseof$7millionincustomerenergyefficiency andenvironmentalremediationcosts.DepreciationandAmortization2014versus2013AmerenCorporationDepreciationandamortizationexpensesincreased$39millionin2014comparedwith2013,primarilydueto increasedexpensesatAmerenMissouriandAmerenIllinois asdiscussedbelow.AmerenMissouriDepreciationandamortizationexpensesincreased$19millionin2014comparedwith2013,primarilybecause ofelectricsystemcapitaladditions.AmerenIllinoisDepreciationandamortizationexpensesincreased$20millionin2014comparedwith2013,primarilybecauseofelectricsystemcapitaladditions.2013versus2012AmerenCorporationDepreciationandamortizationexpensesincreased$33millionin2013comparedwith2012,primarilybecause ofincreasedexpensesatAmerenMissouriandAmeren Illinoisasdiscussedbelow.AmerenMissouriDepreciationandamortizationexpensesincreased$14millionin2013comparedwith2012,primarilybecauseofa$6millionincreaseindepreciationexpenserelatedto electricsystemcapitaladditionsanda$6millionincreasein amortizationexpenserelatedtotheDecember2012MoPSC electricrateorderresultinginhigheramortizationofpre-MEEIAcustomerenergyefficiencyprogramcosts,which werereflectedinelectricrateseffectiveinJanuary2013.AmerenIllinoisDepreciationandamortizationexpensesincreased$22millionin2013comparedwith2012,primarilybecauseofnewelectricdepreciationrates,whichincreased depreciationexpenseby$17million,asaresultofa reductionintheusefullivesofexistingelectricmetersthat arebeingreplacedwithadvancedmeteringinfrastructure pursuanttotheIEIMA.Additionally,electricsystemcapital additionsincreaseddepreciationexpense$6million.TaxesOtherThanIncomeTaxes2014versus2013AmerenCorporationTaxesotherthanincometaxesincreased$10millionin2014comparedwith2013,primarilybecauseofincreasedexpensesatAmerenMissouriandAmerenIllinoisas discussedbelow.AmerenMissouriTaxesotherthanincometaxesincreased$3million,primarilybecauseofanincreaseinpropertytaxesresultingfromhighertaxratesandincreasedstateandlocal assessmentsin2014.AmerenIllinoisTaxesotherthanincometaxesincreased$6millionbecauseofa$3millionincreaseingrossreceiptstaxes,as 43 aresultofhighernaturalgasratesandhighersalesvolumes,andbecauseofa$3millionincreaseinproperty taxesbetweenyears.Theincreasedgrossreceiptstaxes wereoffsetbyincreasedgrossreceiptstaxrevenues,with nooveralleffectonnetincome.SeeExciseTaxesinNote1-SummaryofSignificantAccountingPoliciesunderPartII, Item8,ofthisreportforadditionalinformation.2013versus2012AmerenCorporationTaxesotherthanincometaxesincreased$15millionin2013comparedwith2012,primarilybecauseofincreased expensesatAmerenMissouriandAmerenIllinoisas discussedbelow.AmerenMissouriTaxesotherthanincometaxesincreased$15million,primarilybecauseofanincreaseof$13millioningrossreceiptstaxesasaresultofincreasedsales.Theincreased grossreceiptstaxeswereoffsetbyincreasedgrossreceipts taxrevenues,withnooveralleffectonnetincome.See ExciseTaxesinNote1-SummaryofSignificant AccountingPoliciesunderPartII,Item8,ofthisreportfor additionalinformation.AmerenIllinoisTaxesotherthanincometaxesincreased$2million,primarilybecauseofanincreaseof$7millioningrossreceiptstaxesasaresultofincreasednaturalgassales, partiallyoffsetbyadecreaseof$6millioninpropertytaxes, primarilyresultingfromelectricdistributiontaxcredits receivedin2013.OtherIncomeandExpenses2014versus2013AmerenCorporationOtherincome,netofexpenses,increased$14millionin2014comparedwith2013,primarilybecauseofa$4millionreductionincharitablecontributionsatAmeren (parent)duetothetimingofcontributions,anincreasein Ameren(parent)interestincomefromanotereceivable withMarketingCompany,anditemsatAmerenIllinois discussedbelow.SeeNote6-OtherIncomeandExpenses underPartII,Item8,ofthisreportforadditional
information.AmerenMissouriOtherincome,netofexpenses,wascomparablebetweenyears.
AmerenIllinoisOtherincome,netofexpenses,increased$8million,primarilybecauseofincreasedincomefromcustomer-requestedconstruction,andincreasedinterestincomeonboththeIEIMA2013and2014revenuerequirement reconciliationregulatoryassets.Adecreaseintheequity portionofallowanceforfundsusedduringconstruction, primarilyduetoincreasedusageofshort-termdebttofund capitalexpenditures,reducedthefavorableeffectofthe aboveitems.2013versus2012AmerenCorporationOtherincome,netofexpenses,increased$10millionin2013comparedwith2012,primarilybecauseofitemsat AmerenIllinoisdiscussedbelow.AmerenMissouriOtherincome,netofexpenses,decreased$2million,primarilybecauseofadecreaseininterestincomeresultingfromtheabsencein2013ofa2012interestpayment receivedfromEntergyaspartoftheFERC-orderedrefund relatedtoapowerpurchaseagreementthatexpiredin 2009,partiallyoffsetbydecreaseddonations.SeeNote2-RateandRegulatoryMattersunderPartII,Item8,ofthis reportformoreinformationabouttheEntergyrefund receivedin2012.AmerenIllinoisOtherincome,netofexpenses,increased$11million,primarilybecauseofdecreaseddonationsresultingfromtheabsencein2013oftheone-time$7.5millioncontributionin 2012totheIllinoisScienceandEnergyInnovationTrust pursuanttotheIEIMA,inconnectionwithparticipationin theformularatemakingprocess.Additionally,interest incomewashigher,primarilycausedbytheIEIMA's2013 revenuerequirementreconciliationregulatoryasset.InterestCharges2014versus2013AmerenCorporationInterestchargesdecreased$57millionin2014comparedwith2013,primarilybecauseofa$24millionreductionininterestchargesatAmeren(parent),asaresult ofthematurityof$425millionof8.875%seniorunsecured notesinMay2014,whichwasreplacedwithlowercost debt,andadecreaseininterestchargesassociatedwith uncertaintaxpositionsatAmeren(parent).SeeNote13-IncomeTaxesunderPartII,Item8,ofthisreportfor additionalinformationregardinguncertaintaxpositions.
Additionally,interestchargeswereloweratAmerenIllinois asdiscussedbelow.AmerenMissouriInterestchargeswerecomparablebetweenyears.Theabsencein2014ofa2013reductiontointerestchargesassociatedwithuncertaintaxpositionsresultedinhigher interestcharges.SeeNote13-IncomeTaxesunderPartII, Item8,ofthisreportforinformationregardinguncertaintax positions.Thisincreasewaspartiallyoffsetbytheeffectof refinancingactivitiesthatresultedinhigher-costdebtbeing replacedwithlower-costdebt.
44 AmerenIllinoisInterestchargesdecreased$31million.Therewasareductionininterestchargesassociatedwiththeregulatoryliabilityforthe2012IEIMArevenuerequirement reconciliationastherefundobligationwascompleted throughout2014.The2013and2014IEIMArevenue requirementreconciliationswerebothregulatoryassets, which,asdiscussedaboveunderOtherIncomeand Expenses,resultedininterestincome.Thefavorableeffect ofrefinancingactivitiesthatresultedinhigher-costdebt beingreplacedwithlower-costdebtalsodecreasedinterest charges.Additionally,theICCissuedanelectricrateorder inDecember2014,whichresultedinapartialreversalofa chargerecordedin2013associatedwithaDecember2013 ICCelectricrateorderthathaddisallowedtherecoveryfrom customersofcertaindebtpremiumcosts.SeeNote2-RateandRegulatoryMattersunderPartII,Item8,ofthis reportforadditionalinformation.2013versus2012AmerenCorporationInterestchargesincreased$6millionin2013comparedwith2012,primarilyduetoa$5millionincrease ininterestchargesassociatedwithuncertaintaxpositions atAmeren(parent).Inaddition,increasesatAmerenIllinois morethanoffsetdecreasesatAmerenMissourias discussedbelow.AmerenMissouriInterestchargesdecreased$13million.Interestchargesdecreasedbecauseofchangesinuncertaintaxpositions.Additionally,thefavorableeffectofrefinancing activitiesthatresultedinhighercostdebtbeingreplaced withlowercostdebtloweredinterestcharges.AmerenIllinoisInterestchargesincreased$14million,primarilyduetothechargerecordedin2013asaresultoftheICC'sDecember2013electricrateorderdiscussedabove.Also, interestchargesincreasedbecauseofinterestappliedtothe regulatoryliabilityforthe2012revenuerequirement reconciliation.Partiallyoffsettingtheseincreaseswasthe favorableeffectofrefinancingactivitiesthatresultedin highercostdebtbeingreplacedwithlowercostdebt.IncomeTaxesThefollowingtablepresentseffectiveincometaxratesfortheyearsendedDecember31,2014,2013,and2012:201420132012 Ameren........................
39%38%37%AmerenMissouri
.................
37%38%37%AmerenIllinois
..................
41%40%40%SeeNote13-IncomeTaxesunderPartII,Item8,ofthisreportforinformationregardingreconciliationsofeffectiveincometaxrates.Income(Loss)fromDiscontinuedOperations,Netof
TaxesNomaterialactivitywasrecordedassociatedwithdiscontinuedoperationsin2014.Duringtheyearended December31,2013,thelossfromdiscontinuedoperations, netoftaxes,wasprimarilyrelatedtotheimpairmentloss andrelatedincometaxeffectsassociatedwiththeNewAER divestiture.During2012,AER'senergycenterswere impairedunderheldandusedaccountingguidance.See Note16-DivestitureTransactionsandDiscontinued OperationsunderPartII,Item8,ofthisreportforadditional
information.InJanuary2014,MedinaValleycompletedthesaleoftheElgin,GibsonCity,andGrandTowergas-firedenergy centerstoRocklandCapitalforatotalpurchasepriceof
$168million.Amerendidnotrecognizeagainfromthesale toRocklandCapitalforanyvalueinexcessofits
$137.5millioncarryingvalueforthisdisposalgroup, becauseanyexcessamountthatMedinaValleymayreceive, netoftaxesandotherexpenses,overthecarryingvaluewill ultimatelybepaidtoGencoinJanuary2016,pursuantto Ameren'stransactionagreementwithIPH.InDecember2013,AmerencompletedthedivestitureofNewAERtoIPH.Amerendidnotreceiveanycash proceedsfromIPHforthedivestitureofNewAER.Ameren recordedapretaxchargetoearningsrelatedtotheNew AERdivestitureof$201millionfortheyearended December31,2013.In2013,Amerenadjustedthe accumulateddeferredincometaxesonitsconsolidated balancesheettoreflecttheexcessoftaxbasisoverfinancial reportingbasisofitsstockinvestmentinAER.Thischange inbasisresultedinadiscontinuedoperationsdeferredtax expenseof$99million,whichwaspartiallyoffsetbythe expectedtaxbenefitsof$86millionrelatedtothepretax lossfromdiscontinuedoperations,includingthelosson disposal,fortheyearendedDecember31,2013.Thefinal taxbasisoftheAERdisposalgroupandtherelatedtax benefitresultingfromthetransactionwithIPHare dependentupontheresolutionoftaxmattersunderaudit.It isreasonablypossibleinthenext12monthsthesetax auditswillbecompleted.Asaresult,taxexpenseand benefitsultimatelyrealizedfromthedivestituresmaydiffer materiallyfromthoserecordedasofDecember31,2014, includingthefinalresolutionofAmeren'suncertaintax
positions.In2012,Amerenrecordeda$2.58billionpretaxnoncashlong-livedassetimpairmentchargetoreducethe carryingvalueofAER'senergycenterstotheirestimated fairvaluesundertheaccountingguidanceforheldandused
assets.LIQUIDITYANDCAPITALRESOURCESOurtariff-basedgrossmarginsareourprincipalsourceofcashfromoperatingactivities.Adiversifiedretailcustomermix,primarilyconsistingofrate-regulated residential,commercial,andindustrialcustomers,provides uswithareasonablypredictablesourceofcash.Inaddition 45 tousingcashgeneratedfromoperatingactivities,weuseavailablecash,creditagreementborrowings,commercial paperissuances,moneypoolborrowings,or,inthecaseof AmerenMissouriandAmerenIllinois,othershort-term borrowingsfromaffiliatestosupportnormaloperationsand temporarycapitalrequirements.Wemayreduceourshort-termborrowingswithcashfromoperationsor,atour discretion,withlong-termborrowings,or,inthecaseof AmerenMissouriandAmerenIllinois,withcapital contributionsfromAmeren(parent).Weexpecttomake significantcapitalexpendituresoverthenextfiveyearsas weinvestinourelectricandnaturalgasutilityinfrastructure tosupportoverallsystemreliability,environmental compliance,andotherimprovements.Weintendtofund thosecapitalexpenditureswithavailablecashonhand,cash generatedfromoperatingactivities,andcommercialpaper anddebtissuancessothatwemaintainanequityratioaround50%,assumingconstructiveregulatory environments.Weplantoimplementourlong-term financingplansfordebt,equity,orequity-linkedsecurities tofinanceouroperationsappropriately,tofundscheduled debtmaturities,andtomaintainfinancialstrengthand
flexibility.Theuseofcashgeneratedfromoperatingactivitiesandshort-termborrowingstofundcapitalexpendituresand otherlong-terminvestmentsmayperiodicallyresultina workingcapitaldeficit,definedascurrentliabilities exceedingcurrentassets,aswasthecaseatDecember31, 2014.TheworkingcapitaldeficitasofDecember31,2014, wasprimarilytheresultofincreasedcommercialpaper issuances.Withthe2012CreditAgreements,Amerenhas accessto$2.1billionofcreditcapacity,ofwhich
$1.4billionwasavailableatDecember31,2014.Thefollowingtablepresentsnetcashprovidedby(usedin)operating,investingandfinancingactivitiesfortheyearsendedDecember31,2014,2013,and2012:NetCashProvidedBy(UsedIn)OperatingActivitiesNetCashProvidedby(UsedIn)InvestingActivitiesNetCashProvidedby(UsedIn)FinancingActivities201420132012201420132012201420132012 Ameren (a)-continuingoperations
.....$1,557$1,636$1,404$(1,856)$(1,440)$(1,153)$141$(149)$(426)
Ameren (a)-discontinuedoperations...
(6)57286 139(283)(157)
---AmerenMissouri
..................
9501,1431,004 (837)(687)(703)
(113)(603)(354)AmerenIllinois
....................
445651519 (828)(695)(437) 38345(103)(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.CashFlowsfromOperatingActivities2014versus2013AmerenCorporationAmeren'scashfromoperatingactivitiesassociatedwithcontinuingoperationsdecreased$79millionin2014, comparedwith2013.Thefollowingitemscontributedtothe
decrease:An$89milliondecreaseinthecashassociatedwithAmerenMissouri'sunder-recoveredFACcosts.
Deferralsandrefundsexceededrecoveriesin2014by
$49million,whilerecoveriesexceededdeferralsin 2013by$40million.
The2014refundstoAmerenIllinoiscustomersof
$67millionasrequiredundertheprovisionsofthe IEIMAforthe2012revenuerequirementreconciliation adjustment,comparedwithnorefundsin2013.
A$65milliondifferenceinexpendituresforcustomer energyefficiencyprogramscomparedwithamounts collectedfromAmerenMissouriandAmerenIllinois
customers.
A$50millionincreaseincoalpurchasescausedby increasedvolumesandprices.AmerenMissouri purchasedlesscoalin2013,due,inpart,todelivery disruptionsfromflooding.
A$42milliondifferenceinpurchasedpower commoditycostsincurredcomparedwithamounts collectedfromAmerenIllinoiscustomers.
A$39millionincreaseinrebatepaymentsprovidedfor customer-installedsolargenerationatAmeren Missouri,whichwillbecollectedfromcustomersina futureperiod.
A$38milliondecreaseinnaturalgascommoditycosts collectedfromcustomersunderthePGAs,primarily relatedtoAmerenIllinois.
Adecreaseof$26millionatAmerenMissouriand AmerenIllinoisforstormrestorationassistance providedtononaffiliatedutilities,primarilydueto HurricaneSandyin2013.
A$26millionincreaseinpaymentstocontractorsat AmerenIllinoisforadditionalreliability,maintenance, andIEIMAprojects.
Refundsof$24milliontocustomersasrequiredbya September2014FERCorderinAmerenIllinois' wholesaledistributionratecase.
A$23millionincreaseinthevalueofnaturalgasheld instorageatAmerenIllinoisbecauseofincreased marketpricesandtimingofinjectionsandwithdrawals.
A$22milliondecreaseassociatedwithstock-based compensationawards.
A$21millionincreaseinlaborcostsatAmerenIllinois, primarilybecauseofwageincreasesandstaffadditions tomeetenhancedreliabilityandcustomerservicegoals relatedtotheIEIMA.
A$21milliondifferenceintransmissionservicecosts incurredcomparedwithamountscollectedfrom customersprimarilyatAmerenIllinois.
46 Anet$19milliondecreaseinreturnsofcollateralpostedwithcounterpartiesduetochangesatAmeren MissouriandAmerenIllinoisdiscussedbelow.
A$17millionincreaseinthepurchaseofreceivables fromalternativeretailelectricsupplierscomparedwith amountscollectedfromAmerenIllinoiscustomers.
A$16milliondecreaseincontributionsreceivedby AmerenIllinoisfromcustomersforfutureconstruction.
An$8millionincreaseinpropertytaxpaymentsat AmerenMissouricausedbyhigherassessedproperty taxvaluesandincreasedpropertytaxrates.ThefollowingitemspartiallyoffsetthedecreaseinAmeren'scashfromoperatingactivitiesassociatedwith continuingoperationsduring2014,comparedwith2013:
Electricandnaturalgasmargins,asdiscussedinResultsofOperationsexcludingcertainnoncashitems, thatincreasedby$166million.
Incometaxrefundsof$41millionin2014,primarily duetofederalsettlementsforthetaxyears2007 through2011,comparedwithincometaxpaymentsin 2013of$116million.SeeNote1-Summaryof SignificantAccountingPoliciesunderPartII,Item8,of thisreportforincometaxpayment(refund)information asitrelatestocontinuinganddiscontinuedoperations.
A$76milliondecreaseinpensionandpostretirement benefitplancontributions.InadditiontotheAmeren MissouriandAmerenIllinoisamountsdiscussed below,Ameren'snonregistrantsubsidiaries' contributionstothepensionandpostretirementbenefit plansdecreased$30million.
A$74millionincreaseinthecollectionofcustomer receivablebalancescomparedtotheprioryeardriven bythetimingandamountofrevenuesineachperiod.
A$29milliondecreaseininterestpayments,primarily duetorefinancingactivityatAmerenMissouriand Ameren(parent).SeeNote1-SummaryofSignificant AccountingPoliciesunderPartII,Item8,ofthisreport forinterestpaymentinformationasitrelatesto continuinganddiscontinuedoperations.
A$27millioninsurancereceiptatAmerenMissouri relatedtotheDecember2005breachoftheupper reservoirattheTaumSaukpumped-storage hydroelectricenergycenter.Ameren'scashfromoperatingactivitiesassociatedwithdiscontinuedoperationsdecreasedin2014,compared with2013.The2013activityrelatedtothedisposedNew AERandtheElgin,GibsonCityandGrandTowerenergy centers.The2014activityrelatedtotransactioncostsand taxpaymentsassociatedwiththeElgin,GibsonCityand GrandTowerenergycenters.AmerenMissouriAmerenMissouri'scashfromoperatingactivitiesdecreased$193millionin2014,comparedwith2013.Thefollowingitemscontributedtothedecrease:
A$129millionincreaseinincometaxpaymentspaidtoAmeren(parent)pursuanttothetaxallocationagreement,resultingprimarilyfromfewerdeductions forcapitalexpendituresfortaxyears2007through 2013,whichcausedincreasedpaymentsin2014.The increasewaspartiallyoffsetbyareductioninpayments duetotheexpecteduseofnetoperatingloss carryforwardsin2014.
An$89milliondecreaseinthecashassociatedwith AmerenMissouri'sunder-recoveredFACcosts.
Deferralsandrefundsexceededrecoveriesin2014by
$49million,whilerecoveriesexceededdeferralsin 2013by$40million.
A$50millionincreaseincoalpurchasescausedby increasedvolumesandprices.AmerenMissouri purchasedlesscoalin2013,due,inpart,todelivery disruptionsfromflooding.
A$39millionincreaseinrebatepaymentsprovidedfor customer-installedsolargeneration,whichwillbe collectedfromcustomersinafutureperiod.
A$28milliondifferenceinexpendituresforcustomer energyefficiencyprogramscomparedwithamounts collectedfromcustomers.
An$11milliondecreaseinnaturalgascommodity costscollectedfromcustomersunderthePGA.
Adecreaseof$10millionforstormrestoration assistanceprovidedtononaffiliatedutilities,primarily duetoHurricaneSandyin2013.
An$8millionincreaseinpropertytaxpaymentscaused byhigherassessedpropertytaxvaluesandincreased propertytaxrates.ThefollowingitemspartiallyoffsetthedecreaseinAmerenMissouri'scashfromoperatingactivitiesduring 2014,comparedwith2013:
A$76millionincreaseinthecollectionofcustomerreceivablebalancescomparedtotheprioryeardriven bythetimingandamountofrevenuesineachperiod.
A$27millioninsurancereceiptrelatedtotheDecember 2005breachoftheupperreservoirattheTaumSauk pumped-storagehydroelectricenergycenter.
A$26milliondecreaseinpensionandpostretirement benefitplancontributions.
Electricandnaturalgasmargins,asdiscussedin ResultsofOperationsexcludingcertainnoncashitems, thatincreasedby$20million.
Anet$10millionincreaseinreturnsofcollateral postedwithcounterpartiesprimarilyresultingfrom changesinthemarketpricesofpowerandnaturalgas andincontractedcommodityvolumes.
A$9milliondecreaseininterestpayments,primarily duetorefinancingactivity.AmerenIllinoisAmerenIllinois'cashfromoperatingactivitiesdecreased$206millionin2014,comparedwith2013.The followingitemscontributedtothedecrease:
The2014refundstocustomersof$67millionasrequiredundertheprovisionsoftheIEIMAforthe2012 revenuerequirementreconciliationadjustment, comparedwithnorefundsin2013.
47 A$42milliondifferenceinpurchasedpowercommoditycostsincurredcomparedwithamounts collectedfromcustomers.
A$37milliondifferenceinexpendituresforcustomer energyefficiencyprogramscomparedwithamounts collectedfromcustomers.
Anet$29milliondecreaseinreturnsofcollateral postedwithcounterparties,primarilyresultingfrom changesinthemarketpricesofpowerandnaturalgas andincontractedcommodityvolumes.
A$27milliondecreaseinnaturalgascommoditycosts collectedfromcustomersunderthePGA.
A$26millionincreaseinpaymentstocontractorsfor additionalreliability,maintenance,andIEIMAprojects.
Refundstocustomersof$24millionasrequiredbya September2014FERCorderinthewholesale distributionratecase.
A$23millionincreaseinthevalueofnaturalgasheld instoragebecauseofincreasedmarketpricesandthe timingofinjectionsandwithdrawals.
A$21millionincreaseinlaborcosts,primarilybecause ofwageincreasesandstaffadditionstomeetenhanced reliabilityandcustomerservicegoalsrelatedtothe
IEIMA.A$20milliondifferenceintransmissionservicecosts incurredcomparedwithamountscollectedfrom
customers.
A$17millionincreaseinthepurchaseofreceivables fromalternativeretailelectricsupplierscomparedwith amountscollectedfromcustomers.
A$16milliondecreaseincontributionsreceivedfrom customersforfutureconstruction.
Theabsenceof$16millionreceivedin2013forstorm restorationassistanceprovidedtononaffiliatedutilities, primarilyduetoHurricaneSandy.ThefollowingitemspartiallyoffsetthedecreaseinAmerenIllinois'cashfromoperatingactivitiesduring2014, comparedwith2013:
Electricandnaturalgasmargins,asdiscussedinResultsofOperationsexcludingcertainnoncashitems, thatincreasedby$126million.
A$21millionincreaseinincometaxrefundsfrom Ameren(parent)pursuanttothetaxallocation agreement,resultingprimarilyfromtheexpecteduseof netoperatinglosscarryforwardsin2014.
A$20milliondecreaseinpensionandpostretirement benefitplancontributions.2013versus2012AmerenCorporationAmeren'scashfromoperatingactivitiesassociatedwithcontinuingoperationsincreased$232millionin2013, comparedwith2012.Thefollowingitemscontributedtothe
increase:Theabsencein2013of$138millioninpremiumspaidtodebtholdersin2012inconnectionwiththe repurchaseofthetenderedprincipalofmultipleseriesofAmerenMissouriandAmerenIllinoisseniorsecured
notes.A$115millionincreaseinthecashassociatedwith AmerenMissouri'sunder-recoveredFACcosts.
Recoveriesoutpaceddeferralsin2013by$41million, whiledeferralsandrefundsoutpacedrecoveriesin 2012by$74million.
Electricandnaturalgasmargins,asdiscussedin ResultsofOperationsexcludingcertainnoncashitems, thatincreasedby$109million.
A$94millionincreaseduetochangesinAmeren Missouricoalinventorylevels.In2013,coalinventory levelsdecreasedby$62millionbecauseofdelivery disruptionsduetoflooding,whilein2012,coal inventorylevelsincreasedby$32million,primarily becauseadditionaltonswereheldininventorywhen generationlevelswerelowerthanexpecteddueto marketconditions.
Theabsencein2013of$25millioninseverance paymentsmadein2012asaresultofthevoluntary separationoffersextendedtoAmerenMissouri employeesinthefourthquarterof2011.
A$22milliondecreaseininterestpayments,primarily dueto2012refinancingactivityandtimingofpayments onAmerenMissouriandAmerenIllinoisseniorsecured
notes.Thereceiptof$16millionin2013forstormrestoration assistanceprovidedtononaffiliatedutilitiesin2012at AmerenIllinois.
Aone-time$7.5millioncontribution,in2012,by AmerenIllinoistotheIllinoisScienceandEnergy InnovationTrust,asrequiredbytheIEIMA,whichwas notrepeatedin2013.ThefollowingitemspartiallyoffsettheincreaseinAmeren'scashfromoperatingactivitiesassociatedwith continuingoperationsduring2013,comparedwith2012:
A$106millionincreaseinincometaxpaymentsforcontinuingoperations.Asdiscussedbelow,incometax paymentsatAmerenMissouriincreased$89million, whileincometaxrefundsatAmerenIllinoisincreased
$1million.ConsideringbothAmeren'scontinuingand discontinuedoperations,Amerenmadeimmaterial federalincometaxpaymentsin2013.
A$91milliondecreaseinthecollectionofcustomer receivablebalancescomparedwiththeprioryear, drivenbythetimingandamountofrevenuesineach
period.A$27millionincreaseinpaymentsforthe2013 schedulednuclearrefuelingandmaintenanceoutageat theCallawayenergycenter.Therewasnorefuelingand maintenanceoutagein2012.
Theabsencein2013ofcourtregistryreceiptsand payments.In2012,AmerenMissourireceived
$19millionfromtheCircuitCourtofStoddardCounty's registryandtheCircuitCourtofColeCounty'sregistry, netofpaymentsintothoseregistries,asaresultofa MissouriCourtofAppealsrulingupholdingthe MoPSC'sJanuary2009electricrateorder.
48 A$13millionincreaseinpropertytaxpayments,primarilyatAmerenMissouri,causedbythetimingof
payments.A$12millionincreaseinmajorstormrestorationcosts.
An$11millionincreaseinlaborcostsprimarilyrelated toincreasedstaffinglevelsassociatedwithIEIMAat AmerenIllinois.
An$8millionincreaseinpensionandpostretirement benefitplancontributions,primarilycausedbyan increaseinfundingrequirementsin2013compared with2012,partiallyoffsetbyanadditional postretirementcontributionin2012atAmerenIllinois.
InadditiontotheAmerenMissouriandAmerenIllinois amountsdiscussedbelow,Ameren'snonregistrant subsidiariesincreasedtheircontributionstothe pensionandpostretirementbenefitplansby
$19million.Ameren'scashfromoperatingactivitiesassociatedwithdiscontinuedoperationsdecreasedin2013,compared with2012,primarilybecauseofa$277milliondecreasein electricmargins,excludingimpactsofnoncashunrealized MTMactivity.Thedecreasewaspartiallyoffsetbya
$99millionincreaseinincometaxrefundsin2013duetoa reductioninpretaxbookincomepartiallyoffsetbya reductioninaccelerateddepreciationdeductions.Ameren's discontinuedoperationsentitiesreceivedtheseincometax refundsthroughthetaxallocationagreementwithAmeren's continuingoperationsentities.AmerenMissouriAmerenMissouri'scashfromoperatingactivitiesincreased$139millionin2013,comparedwith2012.Thefollowingitemscontributedtotheincrease:
A$115millionincreaseinthecashassociatedwithunder-recoveredFACcosts.Recoveriesexceeded deferralsin2013by$41million,whiledeferralsand refundsexceededrecoveriesin2012by$74million.
A$94millionincreaseduetochangesincoalinventory levels.In2013,coalinventorylevelsdecreasedby
$62millionbecauseofdeliverydisruptionsdueto flooding,whilein2012,coalinventorylevelsincreased by$32million,primarilybecauseadditionaltonswere heldininventorywhengenerationlevelswerelower thanexpectedduetomarketconditions.
Electricandnaturalgasmargins,asdiscussedin ResultsofOperationsexcludingcertainnoncashitems, thatincreasedby$91million.
Theabsencein2013of$62millioninpremiumspaid todebtholdersin2012inconnectionwiththe repurchaseofthetenderedprincipalofmultipleseries ofseniorsecurednotes.
Theabsencein2013of$25millioninseverance paymentsmadein2012asaresultofthevoluntary separationoffersextendedtoemployeesinthefourth quarterof2011.
An$8milliondecreaseininterestpayments,primarily dueto2012refinancingactivityandtimingofpayments onseniorsecurednotes.ThefollowingitemspartiallyoffsettheincreaseinAmerenMissouri'scashfromoperatingactivitiesduring 2013,comparedwith2012:
Incometaxpaymentsthattotaled$86millionin2013,resultingprimarilyfromareductioninaccelerated depreciationdeductions,whileincometaxrefundswere
$3millionin2012.Paymentsandrefundsweremade betweenAmerenMissouriandAmeren(parent) pursuanttothetaxallocationagreement.
A$60milliondecreaseinthecollectionofcustomer receivablebalancescomparedwiththeprioryear, drivenbythetimingandamountofrevenuesineach
period.A$27millionincreaseinpaymentsforscheduled nuclearrefuelingandmaintenanceoutagesatthe Callawayenergycenter.Therewasnorefuelingand maintenanceoutagein2012.
A$20millionincreaseinpropertytaxpaymentscaused bythetimingofpayments.
Theabsencein2013ofcourtregistryreceiptsand payments.In2012,AmerenMissourireceived
$19millionfromtheCircuitCourtofStoddardCounty's registryandtheCircuitCourtofColeCounty'sregistry, netofpaymentsintothoseregistries,asaresultofa MissouriCourtofAppealsrulingupholdingthe MoPSC'sJanuary2009electricrateorder.
A$9millionincreaseinpensionandpostretirement benefitplancontributionsprimarilycausedbyan increaseinfundingrequirementsin2013compared with2012.An$8millionincreaseinmajorstormrestorationcosts.AmerenIllinoisAmerenIllinois'cashfromoperatingactivitiesincreased$132millionin2013,comparedwith2012.The followingitemscontributedtotheincrease:
Theabsencein2013of$76millioninpremiumspaidtodebtholdersin2012inconnectionwiththe repurchaseofthetenderedprincipalofmultipleseries ofseniorsecurednotes.
A$20milliondecreaseinpensionandpostretirement benefitplancontributions,primarilycausedbyan additionalpostretirementcontributionin2012.
Thereceiptof$16millionin2013forstormrestoration assistanceprovidedtononaffiliatedutilitiesin2012.
A$13milliondecreaseininterestpayments,primarily dueto2012refinancingactivityandtimingofpayments onseniorsecurednotes.
Electricandnaturalgasmargins,asdiscussedin ResultsofOperationsexcludingcertainnoncashitems, thatincreasedby$11million.
Aone-time$7.5millioncontribution,in2012,tothe IllinoisScienceandEnergyInnovationTrustasrequired bytheIEIMA.
A$7milliondecreaseinpropertytaxpaymentsdueto twoelectricitydistributiontaxcreditrefundsreceivedin
2013.49 ThefollowingitemspartiallyoffsettheincreaseinAmerenIllinois'cashfromoperatingactivitiesduring2013,comparedwith2012:
A$29milliondecreaseinthecollectionofcustomerreceivablebalancescomparedwiththeprioryear, drivenbythetimingandamountofrevenuesineach
period.An$11millionincreaseinlaborcostsprimarilyrelated toincreasedstaffinglevelsassociatedwithIEIMA.PensionPlansAmeren'spensionplansarefundedincompliancewithincometaxregulationsandfederalfundingorregulatory requirements.Asaresult,Amerenexpectstofundits pensionplansatalevelequaltothegreaterofthepension expenseorthelegallyrequiredminimumcontribution.
ConsideringAmeren'sassumptionsatDecember31,2014, itsinvestmentperformancein2014,anditspension fundingpolicy,Amerenexpectstomakeannual contributionsof$25millionto$115millionineachofthe nextfiveyears,withaggregateestimatedcontributionsof
$290million.WeexpectAmerenMissouri'sandAmeren Illinois'portionsofthefuturefundingrequirementstobe 41%and40%,respectively.Theseamountsareestimates.
Theestimatesmaychangewithactualinvestment performance,changesininterestrates,changesinour assumptions,changesingovernmentregulations,orany voluntarycontributions.In2014,Amerencontributed
$99milliontoitspensionplans.SeeNote11-Retirement BenefitsunderPartII,Item8,ofthisreportforadditional
information.CashFlowsfromInvestingActivities2014versus2013Ameren'scashusedininvestingactivitiesassociatedwithcontinuingoperationsincreasedby$416millionduring2014,comparedwith2013.Capitalexpenditures increased$406million,primarilybecauseofincreased transmissionexpenditures,whichincludeda$150million increaseforATXI'sIllinoisRiversproject.Inaddition, capitalexpendituresforenergycenter,reliabilityandIEIMA projectsincreasedcashusedininvestingactivitiesandare discussedbelow.During2014,cashprovidedbyinvestingactivitiesassociatedwithAmeren'sdiscontinuedoperations consistedof$152millionreceivedfromRocklandCapital forthesaleoftheElgin,GibsonCity,andGrandTowergas-firedenergycentersinJanuary2014,offsetbypaymentof
$13milliontoIPHforthefinalworkingcapitaladjustment andaportionofcertaincontingentliabilitiesassociatedwith theNewAERdivestiture.Incomparison,cashusedin investingactivitiesassociatedwithdiscontinuedoperations during2013was$283million,primarilybecauseofthe requirementtoleave$235millionwithNewAERupon divestiture,pursuanttothetransactionagreementwithIPH.AmerenMissouri'scashusedininvestingactivitiesincreasedby$150millionduring2014,comparedwith2013.Capitalexpendituresincreased$99million,primarily forreliabilityandenergycenterprojects,includingthe nuclearreactorvesselheadreplacementprojectatits Callawayenergycenter,theelectrostaticprecipitator upgradesattheLabadieenergycenter,anewsubstationin St.Louis,andinvestmentintheO'Fallonenergycenter, offsetbyareductioninstormrestorationexpenditures.
Nuclearfuelexpendituresincreasedby$29milliondueto timingofpurchasesin2014comparedto2013.Inaddition, cashusedininvestingactivitiesincreasedin2014because oftheabsencein2014of$24millioninnetreceiptsrelated tomoneypooladvancesreceivedin2013.AmerenIllinois'cashusedininvestingactivitiesincreasedby$133millionduring2014,comparedwith 2013,becauseofincreasedcapitalexpenditures,primarily fortransmission,reliability,andIEIMAprojects.2013versus2012Ameren'scashusedininvestingactivitiesassociatedwithcontinuingoperationsincreasedby$287millionduring2013,comparedwith2012.Capitalexpenditures increased$316million,primarilybecauseofincreased expendituresfortransmissioninIllinois,reliabilityprojects, andstormrestorationcosts.Theincreaseincashflows usedininvestingactivitieswaspartiallyoffsetbya
$46milliondecreaseinnuclearfuelexpendituresdueto timingofpurchases.CashusedininvestingactivitiesassociatedwithAmeren'sdiscontinuedoperationsincreased$126million during2013,comparedwith2012,primarilybecauseofthe requirementtoleave$235millionwithNewAERupon divestiture,pursuanttothetransactionagreementwithIPH.
Thisuseofcashwaspartiallyoffsetbyreducedcapital expendituresin2013asaresultofthedecelerationofthe scrubberconstructionprojectatthepreviously-owned Newtonenergycenter.AmerenMissouri'scashusedininvestingactivitiesdecreased$16millionduring2013,comparedwith2012, primarilyduetochangesinmoneypooladvancesanda
$46milliondecreaseinnuclearfuelexpendituresdueto timingofpurchases.Thedecreaseincashusedininvesting activitieswaspartiallyoffsetbyincreasedcapital expendituresandtheabsencein2013ofa2012receiptof
$18millionforfederaltaxgrantsrelatedtorenewable energyconstructionprojects.Capitalexpenditures increased$53million,primarilybecauseofincreased expendituresforreliabilityprojectsandanincreaseinstorm restorationcosts.AmerenIllinois'cashusedininvestingactivitiesincreased$258millionduring2013,comparedwith2012.
Capitalexpendituresincreased$259million,primarily becauseofincreasedexpendituresof$164millionfor transmissionandreliabilityprojects,$18millionforstorm restorationcosts,and$12millionforIEIMAprojects.
50 CapitalExpendituresThefollowingtablepresentsthecapitalexpendituresbytheAmerenCompaniesfortheyearsendedDecember31,2014,2013,and2012:201420132012 Ameren (a)................$1,785$1,379$1,063AmerenMissouri
..........
747648595AmerenIllinois
............
835701442(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandtheeliminationofintercompanytransfers.Ameren's2014capitalexpendituresconsistedprimarilyofthefollowingexpendituresbyitssubsidiaries.
AmerenMissourispent$101millionforelectrostatic precipitatorupgradesatitsLabadieenergycenter,
$33millionforthereplacementofthenuclearreactorvessel headatitsCallawayenergycenter,and$16millionforthe constructionoftheO'Fallonenergycenter.AmerenIllinois spent$284millionontransmissioninitiativesand
$89milliononIEIMAprojects.ATXIspent$201millionon theIllinoisRiversproject.Othercapitalexpenditureswere madeprincipallytomaintain,upgrade,andimprovethe reliabilityofthetransmissionanddistributionsystemsof AmerenMissouriandAmerenIllinoisaswellastofund variousAmerenMissourienergycenterupgrades.Ameren's2013capitalexpendituresconsistedprimarilyofthefollowingexpendituresbyitssubsidiaries.
AmerenMissourispent$53millionforelectrostatic precipitatorupgradesattheLabadieenergycenter,
$30milliononstormrestoration,and$29milliononthe replacementofthenuclearreactorvesselheadatits Callawayenergycenterwhichwasinstalledduringthe2014 refuelingandmaintenanceoutage.AmerenIllinoisspent
$269millionontransmissioninitiatives,$33millionon IEIMAprojects,and$23milliononstormrestoration.ATXI spent$51millionontheIllinoisRiversproject.Othercapital expendituresweremadeprincipallytomaintain,upgrade, andimprovethereliabilityofthetransmissionand distributionsystemsofAmerenMissouriandAmeren IllinoisaswellastofundvariousAmerenMissourienergy centerupgrades.Ameren's2012capitalexpendituresconsistedprimarilyofthefollowingexpendituresbyitssubsidiaries.
AmerenMissourispent$30milliononthereplacementof thenuclearreactorvesselheadatitsCallawayenergycenter whichwasinstalledduringthe2014refuelingand maintenanceoutage,and$23milliononaboilerupgrade project.AmerenIllinoisspent$27milliononIEIMA projects.Othercapitalexpendituresweremadeprincipally tomaintain,upgrade,andimprovethereliabilityofthe transmissionanddistributionsystemsofAmerenMissouri andAmerenIllinoisaswellastofundvariousAmeren Missourienergycenterupgrades.ThefollowingtablepresentsAmeren'sestimateofcapitalexpendituresthatwillbeincurredfrom2015through 2019,includingconstructionexpenditures,allowanceforfundsusedduringconstruction,andexpendituresfor compliancewithexistingenvironmentalregulations.
Amerenexpectstoallocatemoreofitsdiscretionarycapital expenditurestoAmerenIllinoisandATXIbasedonthe moreconstructiveregulatoryframeworkswithinwhichthey
operate.20152016-2019TotalAmerenMissouri..$710$2,875-$3,180$3,585-$3,890AmerenIllinois....9052,775-3,0653,680-3,970 ATXI............345945-1,0451,290-1,390 Ameren.........$1,960$6,595-$7,290$8,555-$9,250AmerenMissouri'sestimatedcapitalexpendituresincludetransmission,distribution,andgeneration-relatedinvestments,aswellasexpendituresforcompliancewith environmentalregulations.AmerenIllinois'estimated capitalexpendituresareprimarilyforelectricandnatural gastransmissionanddistribution-relatedinvestments, capitalexpendituresincrementaltohistoricalaverage electricdeliverycapitalexpenditurestomodernizeits distributionsystempursuanttotheIEIMA,andcapital expendituresforqualifiedinvestmentsinnaturalgas infrastructureundertheQIPrider.ATXI'sestimatedcapital expendituresincludeexpendituresforthethreeMISO-approvedmulti-valuetransmissionprojects.Foradditional informationregardingtheIEIMAcapitalexpenditure requirements,theQIPrider,andATXI'stransmission projects,seeBusinessunderPartI,Item1,ofthisreport.AmerenMissouricontinuallyreviewsitsgenerationportfolioandexpectedpowerneeds.Asaresult,Ameren Missouricouldmodifyitsplanforgenerationcapacity,the typeofgenerationassettechnologythatwillbeemployed, andwhethercapacityorpowermaybepurchased,among otherchanges.Additionally,wecontinuallyreviewthe reliabilityofourtransmissionanddistributionsystems, expectedcapacityneeds,andopportunitiesfortransmission investments.Thetimingandamountofinvestmentscould varybecauseofchangesinexpectedcapacity,thecondition oftransmissionanddistributionsystems,andourability andwillingnesstopursuetransmissioninvestments, amongotherfactors.Anychangesinfuturegeneration, transmission,ordistributionneedscouldresultin significantcapitalexpendituresorlosses,whichcouldbe material.Compliancewithenvironmentalregulationscould alsohavesignificantimpactsonthelevelofcapital
expenditures.EnvironmentalCapitalExpendituresAmerenMissouriwillincursignificantcostsinfutureyearstocomplywithfederalandstateregulationsincludingthoserequiringthereductionofSO 2,NO x,andmercuryemissionsfromitscoal-firedenergycenters.SeeNote15-CommitmentsandContingenciesunderPartII,Item8,of thisreportforadiscussionofexistingenvironmentallaws andregulationsthataffect,ormayaffect,ourfacilitiesand capitalexpenditurestocomplywithsuchlawsand
regulations.
51 CashFlowsfromFinancingActivities2014versus2013Ameren'sfinancingactivitiesassociatedwithcontinuingoperationsprovidednetcashof$141millionin2014,comparedwith2013whenAmerenusedcashof
$149million.During2014,Amerenanditsregistrant subsidiariesissuedlower-costlong-termandshort-term debttofundthematuritiesandredemptionsofhigher-cost long-termdebt,includingthematurityofAmeren(parent)'s
$425millionseniorunsecurednotes.In2014,Amerenalso usedcashfromfinancingactivitiestofundinvesting activitiesthatwerenotfundedbycashgeneratedfrom operatingactivities.Incomparison,during2013,Ameren anditsregistrantsubsidiariesissuedlower-costlong-term andshort-termdebttofundthematuritiesandredemptions ofhigher-costlong-debtandtofundthe$235millionthat AmerenwasrequiredtoleavewithNewAERuponits divestitureinDecember2013,pursuanttothetransaction agreementwithIPH.In2013,Amerenusedcashonhandto fundinvestingandfinancingactivitiesthatwerenotfunded bycashgeneratedfromoperatingactivities.Nocashfromfinancingactivitieswasusedfordiscontinuedoperationsduring2014.AmerenMissouri'sfinancingactivitiesusednetcashof$113millionin2014,comparedwith$603millionin2013.
During2014,AmerenMissouriissued$350millionof seniorsecurednotesandanet$97millionofshort-term debt,repaidatmaturity$104millionoflong-termdebt, repaid$105milliontothemoneypool,andpaidcommon stockdividendsof$340million.AmerenMissouriused cashgeneratedfromitsoperatingactivitiestofund investingandfinancingactivitiesin2014.Incomparison, during2013,AmerenMissouriredeemed$244millionof long-termdebt,paidcommonstockdividendsof
$460million,andreceived$105millionfromthemoney pool.In2013,AmerenMissouriusedcashonhandtofund investingandfinancingactivitiesthatwerenotfundedby cashgeneratedfromoperatingactivities.AmerenIllinois'financingactivitiesprovidednetcashof$383millionin2014,comparedwith$45millionin 2013.During2014,AmerenIllinoisissued$550millionin seniorsecurednotesandanet$32millionofshort-term debt,redeemedexistinglong-termdebtof$163million,and repaid$41milliontothemoneypool.Incomparison, during2013,AmerenIllinoisissued$280millioninsenior secureddebt,repaidatmaturity$150millionoflong-term debt,andpaidcommonstockdividendsof$110million.
Duringbothyears,AmerenIllinoisusedcashfrom financingactivitiestofundinvestingactivitiesthatwerenot fundedbycashgeneratedfromoperatingactivities.2013versus2012Amerenusednetcashof$149millionin2013,comparedwith$426millionin2012relatedtofinancingactivitiesassociatedwithcontinuingoperations.During2013,Amerenanditsregistrantsubsidiariesissuedlower-costlong-termandshort-termdebttofundthematurities andredemptionsofhigher-costlong-termdebtandtofund the$235millionthatAmerenwasrequiredtoleavewith NewAERuponitsdivestitureinDecember2013,pursuant tothetransactionagreementwithIPH.During2012, Amerenanditsregistrantsubsidiariesissuedlower-cost long-termdebttofundthematuritiesandredemptionsof higher-costlong-termdebtandrepayshort-termdebt.
Duringbothyears,Amerenusedcashonhandtofund investingandfinancingactivitiesthatwerenotfundedby cashgeneratedfromoperatingactivities.Nocashfromfinancingactivitieswasusedfordiscontinuedoperationsduring2013.AmerenMissouri'sfinancingactivitiesusednetcashof$603millionin2013,comparedwith$354millionin2012.
During2013,AmerenMissouriredeemed$244millionof long-termdebt,paidcommonstockdividendsof
$460million,andreceived$105millionfromthemoney pool.Incomparison,during2012,AmerenMissouriissued
$485millionofseniorsecurednotes,redeemedorrepaidof
$422millionoflong-termdebt,andpaidcommonstock dividendsof$400million.Duringbothyears,Ameren Missouriusedcashonhandtofundinvestingandfinancing activitiesthatwerenotfundedbycashgeneratedfrom operatingactivities.AmerenIllinois'financingactivitiesprovidednetcashof$45millionin2013,comparedwith2012whenAmeren Illinois'financingactivitiesusednetcashof$103million.
During2013,AmerenIllinoisissued$280millioninsenior secureddebt,repaidatmaturity$150millionoflong-term debt,andpaidcommonstockdividendsof$110million.
AmerenIllinoisusedcashfromfinancingactivitiestofund investingactivitiesthatwerenotfundedbycashprovided byoperatingactivities.Incomparison,during2012,Ameren Illinoisissued$400millionofseniorsecurednotes, redeemedorrepaid$333millionoflong-termdebtandpaid commonstockdividendsof$189million.In2012,Ameren Illinoisusedcashonhandtofundinvestingandfinancing activitiesthatwerenotfundedbycashgeneratedfrom operatingactivities.CreditFacilityBorrowingsandLiquidityTheliquidityneedsofAmeren,AmerenMissouri,andAmerenIllinoisaretypicallysupportedthroughtheuseofavailablecash,short-termintercompanyborrowings, drawingsundercommittedbankcreditagreements,or commercialpaperissuances.SeeNote4-Short-termDebt andLiquidityunderPartII,Item8,ofthisreportfor additionalinformationoncreditagreements,short-term borrowingactivity,commercialpaperissuances,relevant interestrates,andborrowingsunderAmeren'smoneypool
arrangements.
52 Thefollowingtablepresentsthecommitted2012CreditAgreementsofAmeren,AmerenMissouri,andAmerenIllinoisandthecreditcapacityavailableundersuchagreements,consideringreductionsforcommercialpaperissuancesandlettersofcredit,asofDecember31,2014:ExpirationBorrowingCapacityCreditAvailableAmerenandAmerenMissouri:2012MissouriCreditAgreement
........................................December2019$1,000$1,000Less:Commercialpaperoutstanding..................................(a)438 Subtotal 562AmerenandAmerenIllinois:2012IllinoisCreditAgreement
.........................................December20191,1001,100Less:Commercialpaperoutstanding..................................(a)276Less:Lettersofcredit (b).............................................(a)13 Subtotal.............................................................811Amerentotal
...........................................................
$2,100$1,373(a)Notapplicable.(b)AsofDecember31,2014,$9millionofthelettersofcreditrelatetoAmeren'songoingcreditsupportobligationstoNewAER.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8,ofthisreportforadditionalinformation.InDecember2014,Ameren(parent),AmerenMissouriandAmerenIllinoisamended,restated,andextendedthematuritydatesoftheir2012CreditAgreementsfrom November14,2017,toDecember11,2019.Borrowingsby Amerenundereitherofthe2012CreditAgreementsaredue andpayablenolaterthanthematuritydate,while borrowingsbyAmerenMissouriandAmerenIllinoisare dueandpayablenolaterthantheearlierofthematuritydate or364daysafterthedateofsuchborrowing(subjecttothe rightofeachborrowertore-borrowinaccordancewiththe termsoftheapplicable2012CreditAgreement).The2012 CreditAgreementsareusedtoborrowcash,toissueletters ofcredit,andtosupportissuancesunderAmeren's, AmerenMissouri's,andAmerenIllinois'commercialpaper programs.Bothofthe2012CreditAgreementsareavailable toAmerentosupportissuancesunderAmeren's commercialpaperprogram,subjecttoborrowingsublimits.
The2012MissouriCreditAgreementisavailabletosupport issuancesunderAmerenMissouri'scommercialpaper program.The2012IllinoisCreditAgreementisavailableto supportissuancesunderAmerenIllinois'commercialpaper program.During2013and2014,issuancesunderthe Ameren,AmerenMissouri,andAmerenIllinoiscommercial paperprogramswereavailableatlowerinterestratesthan theinterestratesavailableunderthe2012Credit Agreements.Assuch,commercialpaperissuanceswerea preferredsourceofthird-partyshort-termdebtrelativeto creditfacilityborrowings.Themaximumaggregateamountavailabletoeachborrowerundereachfacilityisshowninthefollowingtable (theamountbeingtheborrower's"BorrowingSublimit"):2012MissouriCreditAgreement2012IllinoisCreditAgreement Ameren..............$700$500AmerenMissouri.......800(a)AmerenIllinois.........(a)800(a)Notapplicable.Subjecttoapplicableregulatoryshort-termborrowingauthorizations,thesecreditarrangementsarealsoavailable toAmeren'sothersubsidiariesthroughdirectshort-term borrowingsfromAmeren,including,butnotlimitedto, AmerenServices,throughamoneypoolagreement.
Amerenhasmoneypoolagreementswithandamongits subsidiariestocoordinateandtoprovideforcertainshort-termcashandworkingcapitalrequirements.SeeNote4-Short-termDebtandLiquidityunderPartII,Item8,ofthis reportforadetailedexplanationofthemoneypool
arrangements.Theissuanceofshort-termdebtsecuritiesbyAmeren'sutilitysubsidiariesissubjecttoapprovalbythe FERCundertheFederalPowerAct.InFebruary2014,the FERCissuedanorderauthorizingAmerenMissouritoissue upto$1billionofshort-termdebtsecuritiesthrough March16,2016.InSeptember2014,theFERCissuedan orderauthorizingAmerenIllinoistoissueupto$1billionof short-termdebtsecuritiesthroughSeptember15,2016.TheAmerenCompaniescontinuallyevaluatetheadequacyandappropriatenessoftheirliquidity arrangementsgivenchangingbusinessconditions.When businessconditionswarrant,changesmaybemadeto existingcreditagreementsortoothershort-termborrowing
arrangements.
53 Long-termDebtandEquityThefollowingtablepresentstheissuances,redemptions,repurchases,andmaturitiesoflong-termdebt(netofanyissuancediscounts)fortheyearsendedDecember31,2014,2013,and2012fortheAmerenCompanies.TheAmerenCompaniesdidnotissueanycommonstockorredeemorrepurchaseanypreferredstockduringtheyearsended2014,2013, and2012.Foradditionalinformationrelatedtothetermsandusesoftheseissuancesandeffectiveregistrationstatements, seeNote5-Long-termDebtandEquityFinancingsunderPartII,Item8,ofthisreport.MonthIssued,Redeemed,Repurchased,orMatured201420132012 IssuancesAmerenMissouri:3.90%Seniorsecurednotesdue2042
.............................
September$-$-$4823.50%Seniorsecurednotesdue2024
.............................
April 350--AmerenIllinois:2.70%Seniorsecurednotesdue2022
.............................
August--4004.80%Seniorsecurednotesdue2043
.............................
December-278-4.30%Seniorsecurednotesdue2044
.............................
June 248--3.25%Seniorsecurednotesdue2025
.............................
December 300--TotalAmerenlong-termdebtissuances
..............................$898$278$882Redemptions,RepurchasesandMaturities Ameren(Parent):8.875%Seniorunsecurednotesdue2014..........................May$425$-$-AmerenMissouri:CityofBowlingGreencapitallease(PenoCreekCT)
..................
Various 5 55.25%Seniorsecurednotesdue2012
.............................
September--1736.00%Seniorsecurednotesdue2018
.............................
September--716.70%Seniorsecurednotesdue2019
.............................
September--1215.10%Seniorsecurednotesdue2018
.............................
September--15.10%Seniorsecurednotesdue2019
.............................
September--5619935.45%Seriespollutioncontrolrevenuebondsdue2028
..........
October-44-4.65%Seniorsecurednotesdue2013
.............................
October-200-5.50%Seniorsecurednotesdue2014
.............................May 104--AmerenIllinois:9.75%Seniorsecurednotesdue2018
.............................
August--876.25%Seniorsecurednotesdue2018
.............................
August--1945.50%2000SeriesApollutioncontrolrevenuebondsdue2014
.........August--51 6.20%Series1992Bdue2012
...................................
November--18.875%Seniorsecurednotesdue2013
............................
December-150-5.90%Series1993due2023 (a)...................................
January 32--5.70%1994ASeriesdue2024 (a).................................
January 36--5.95%1993SeriesC-1due2026
.................................
January 35--5.70%1993SeriesC-2due2026
.................................
January 8--5.40%1998ASeriesdue2028
...................................
January 19--5.40%1998BSeriesdue2028
...................................
January 33--TotalAmerenlong-termdebtredemptions,repurchasesandmaturities
......$697$399$760(a)Lessthan$1millionprincipalamountofthebondsremainoutstandingafterredemption.TheAmerenCompaniesmaysellsecuritiesregisteredundertheireffectiveregistrationstatementsifmarketconditionsandcapitalrequirementswarrantsuchsales.
Anyofferandsalewillbemadeonlybymeansofa prospectusthatmeetstherequirementsoftheSecurities Actof1933andtherulesandregulationsthereunder.IndebtednessProvisionsandOtherCovenantsAtDecember31,2014,theAmerenCompanieswereincompliancewiththeprovisionsandcovenantscontainedwithintheircreditagreements,indentures,andarticlesof incorporation.SeeNote4-Short-termDebtandLiquidity andNote5-Long-termDebtandEquityFinancingsunderPartII,Item8,ofthisreportforadiscussionofcovenants andprovisions(andapplicablecross-defaultprovisions) containedinourbankcreditagreementsandincertainof theAmerenCompanies'indenturesandarticlesof
incorporation.Weconsideraccesstoshort-termandlong-termcapitalmarketstobeasignificantsourceoffundingfor capitalrequirementsnotsatisfiedbycashgeneratedfrom ouroperatingactivities.Inabilitytoraisecapitalon reasonableterms,particularlyduringtimesofuncertaintyin thecapitalmarkets,couldnegativelyaffectourabilityto maintainandexpandourbusinesses.Afterassessingits currentoperatingperformance,liquidity,andcreditratings (seeCreditRatingsbelow),Ameren,AmerenMissouri,and 54 AmerenIllinoiseachbelievesthatitwillcontinuetohaveaccesstothecapitalmarkets.However,eventsbeyond Ameren's,AmerenMissouri's,andAmerenIllinois'control maycreateuncertaintyinthecapitalmarketsormake accesstothecapitalmarketsuncertainorlimited.Such eventscouldincreaseourcostofcapitalandadversely affectourabilitytoaccessthecapitalmarkets.DividendsandReturnofCapitalAmerenpaidtoitsshareholderscommonstockdividendstotaling$390million,or$1.61pershare,in2014,$388million,or$1.60pershare,in2013,and$382million, or$1.60pershare,in2012.TheamountandtimingofdividendspayableonAmeren'scommonstockarewithinthesolediscretionof Ameren'sboardofdirectors.Theboardofdirectorshasnot setspecifictargetsorpayoutparameterswhendeclaring commonstockdividends,butitconsidersvariousissues, includingAmeren'soverallpayoutratio,payoutratiosofour peers,projectedcashflowandpotentialfuturecashflow requirements,historicalearningsandcashflow,projected earnings,impactsofregulatoryordersorlegislation,and otherkeybusinessconsiderations.Amerenexpectsits dividendpayoutratiotobebetween55%and70%of earningsoverthenextfewyears.OnFebruary13,2015,the boardofdirectorsofAmerendeclaredaquarterlydividend onAmeren'scommonstockof41centspershare,payable onMarch31,2015,toshareholdersofrecordonMarch11, 2015.Certainofourfinancialagreementsandcorporateorganizationaldocumentscontaincovenantsandconditions that,amongotherthings,restricttheAmerenCompanies' paymentofdividendsincertaincircumstances.AmerenIllinois'articlesofincorporationrequireitsdividendpaymentsoncommonstocktobebasedonratios ofcommonstocktototalcapitalizationandotherprovisions relatedtocertainoperatingexpensesandaccumulationsof earnedsurplus.AmerenMissouriandAmerenIllinois,aswellascertainothernonregistrantAmerensubsidiaries,aresubject toSection305(a)oftheFederalPowerAct,whichmakesit unlawfulforanyofficerordirectorofapublicutility,as definedintheFederalPowerAct,toparticipateinthe makingorpayingofanydividendfromanyfunds"properly includedincapitalaccount."TheFERChasconsistently interpretedtheprovisiontoallowdividendstobepaidas longas(1)thesourceofthedividendsisclearlydisclosed, (2)thedividendsarenotexcessive,and(3)thereisnoself-dealingonthepartofcorporateofficials.Ataminimum, Amerenbelievesthatdividendscanbepaidbyits subsidiariesthatarepublicutilitiesfromnetincomeand fromretainedearnings.Inaddition,underIllinoislaw, AmerenIllinoismaynotpayanydividendonitsstock unless,amongotherthings,itsearningsandearnedsurplus aresufficienttodeclareandpayadividendafterprovisionis madeforreasonableandproperreserves,orunlessAmeren IllinoishasspecificauthorizationfromtheICC.AmerenhascommittedtotheFERCtomaintainaminimumof30%equityinitscapitalstructureatAmeren
Illinois.AtDecember31,2014,Ameren,AmerenMissouri,andAmerenIllinoiswerenotrestrictedfrompayingdividends.AtDecember31,2014,theamountofrestrictednetassetsofwhollyownedsubsidiariesofAmerenthatmay notbedistributedtoAmerenintheformofaloanor dividendwas$2.3billion.ThefollowingtablepresentscommonstockdividendspaidbyAmerenCorporationtoitscommonshareholdersandbyAmerenMissouriandAmerenIllinoistotheirparent,Ameren.201420132012AmerenMissouri
.............................................................................$340 (a)$460$400AmerenIllinois
..............................................................................
-110189 Ameren....................................................................................
390388382(a)Additionally,duringthefourthquarterof2014,AmerenMissourireturnedcapitalof$215milliontoAmeren(parent).CertainoftheAmerenCompanieshaveissuedpreferredstock,whichprovidesforcumulativepreferred stockdividends.Eachcompany'sboardofdirectors considersthedeclarationofthepreferredstockdividendsto shareholdersofrecordonacertaindate,statingthedateonwhichthedividendispayableandtheamounttobepaid.
SeeNote5-Long-termDebtandEquityFinancingsunder PartII,Item8,ofthisreportforfurtherdetailconcerning thepreferredstockissuances.
55 ContractualObligationsThefollowingtablepresentsourcontractualobligationsasofDecember31,2014.SeeNote11-RetirementBenefitsunderPartII,Item8,ofthisreportforinformationregardingexpectedminimumfundinglevelsforourpensionplans.Theseexpectedpensionfundingamountsarenotincludedinthetablebelow.Inaddition,routineshort-termpurchaseorder commitmentsarenotincluded.Lessthan1Year1-3Years3-5YearsAfter5YearsTotal Ameren: (a)Long-termdebtandcapitalleaseobligations (b).........................$120$1,076$1,421$3,634$6,251Interestpayments (c).............................................3396134292,3873,768Operatingleases (d)..............................................1324233898Otherobligations (e)..............................................1,3171,9786601,2315,186Totalcashcontractualobligations...................................$1,789$3,691$2,533$7,290$15,303AmerenMissouri:Long-termdebtandcapitalleaseobligations (b).........................$120$697$964$2,224$4,005Interestpayments (c).............................................2203902891,5802,479Operatingleases (d)..............................................1122203790Otherobligations (e)..............................................8981,6134765253,512Totalcashcontractualobligations...................................$1,249$2,722$1,749$4,366$10,086AmerenIllinois:
Long-termdebt (b)...............................................$-$379$457$1,410$2,246Interestpayments (c).............................................118224139807 1,288Operatingleases (d)..............................................12216Otherobligations (e)..............................................381347184706 1,618Totalcashcontractualobligations...................................$500$952$782$2,924$5,158(a)IncludesamountsforregistrantandnonregistrantAmerensubsidiariesandintercompanyeliminations.
(b)Excludesunamortizeddiscountandpremiumof$11million,$6million,and$5millionatAmeren,AmerenMissouri,andAmerenIllinois, respectively.(c)Theweighted-averagevariable-ratedebthasbeencalculatedusingtheinterestrateasofDecember31,2014.
(d)Amountsforcertainland-relatedleaseshaveindefinitepaymentperiods.Theannualobligationof$2million,$1million,and$1millionforAmeren,AmerenMissouri,andAmerenIllinois,respectively,fortheseitemsisincludedintheLessthan1Year,1-3Years,and3-5Years
columns.(e)SeeOtherObligationsinNote15-CommitmentsandContingenciesunderPartII,Item8ofthisreport,fordiscussionofitemsincluded herein.AsofDecember31,2014,theamountsofunrecognizedtaxbenefits(detriments)foruncertaintaxpositionswere$54million,$-million,and$(1)millionfor Ameren,AmerenMissouri,andAmerenIllinois, respectively.Itisreasonablypossibletoexpectthatthe settlementofanunrecognizedtaxbenefitwillresultinan underpaymentoroverpaymentoftaxandrelatedinterest.
However,thereisahighdegreeofuncertaintywithrespect tothetimingofcashpaymentsorreceiptsassociatedwith unrecognizedtaxbenefits.Theamountandtimingofcertain paymentsorreceiptsisnotreliablyestimableor determinableatthistime.SeeNote13-IncomeTaxes underPartII,Item8,ofthisreportforinformation regardingtheAmerenCompanies'unrecognizedtax benefitsandrelatedliabilitiesforinterestexpense.Off-Balance-SheetArrangementsAtDecember31,2014,noneoftheAmerenCompanieshadoff-balance-sheetfinancingarrangements,otherthan operatingleasesenteredintointheordinarycourseof business.NoneoftheAmerenCompaniesexpecttoengage inanysignificantoff-balance-sheetfinancingarrangements inthenearfuture.SeeNote16-DivestitureTransactions andDiscontinuedOperationsunderPartII,Item8,ofthis reportforAmeren(parent)guaranteesandlettersofcredit issuedtosupportNewAERbasedonthetransaction agreementwithIPH.CreditRatingsOurcreditratingsaffectourliquidity,ouraccesstothecapitalmarketsandcreditmarkets,ourcostofborrowingunderourcreditfacilities,ourcommercialpaperprograms, andourcollateralpostingrequirementsundercommodity
contracts.
56 ThefollowingtablepresentstheprincipalcreditratingsoftheAmerenCompaniesbyMoody's,S&P,andFitcheffectiveonthedateofthisreport:Moody'sS&PFitch Ameren:Issuer/corporatecreditrating
........Baa2BBB+BBB+Seniorunsecureddebt
.............Baa2BBBBBB+Commercialpaper.................P-2A-2F2AmerenMissouri:
Issuer/corporatecreditrating
........Baa1BBB+BBB+Secureddebt.....................A2AASeniorunsecureddebt
.............Baa1BBB+A-Commercialpaper.................P-2A-2F-2AmerenIllinois:
Issuer/corporatecreditrating
........Baa1BBB+BBBSecureddebt.....................A2AA-Seniorunsecureddebt
.............Baa1BBB+BBB+Commercialpaper.................P-2A-2F-2Thecostofborrowingunderourcreditfacilitiescanalsofluctuatedependinguponthecreditratingsoftheborrower.Acreditratingisnotarecommendationtobuy, sell,orholdsecurities.Itshouldbeevaluatedindependently ofanyotherrating.Ratingsaresubjecttorevisionor withdrawalatanytimebytheratingorganization.CollateralPostingsAnyadversechangeinourcreditratingsmayreduceaccesstocapitalandtriggeradditionalcollateralpostingsandprepayments.Suchchangesmayalsoincreasethecost ofborrowing,resultinginapotentialnegativeimpacton earnings.Cashcollateralpostingsandprepaymentsmade withexternalparties,includingpostingsrelatedto exchange-tradedcontractsatDecember31,2014,were
$7million,$7million,andlessthan$1millionatAmeren, AmerenMissouri,andAmerenIllinois,respectively.Cash collateralpostedbyexternalcounterpartieswithAmeren andAmerenIllinoiswas$2millionand$2million, respectively,atDecember31,2014.Sub-investment-grade issuerorseniorunsecureddebtratings(lowerthan"BBB-"
or"Baa3")atDecember31,2014,couldhaveresultedin Ameren,AmerenMissouri,orAmerenIllinoisbeing requiredtopostadditionalcollateralorotherassurancesfor certaintradeobligationsamountingto$159million,
$88million,and$71million,respectively.Changesincommoditypricescouldtriggeradditionalcollateralpostingsandprepaymentsatcurrentcredit ratings.Ifmarketpriceswere15%higherthan December31,2014,levelsinthenext12monthsand20%
higherthereafterthroughtheendofthetermofthe commoditycontracts,thenAmeren,AmerenMissouri,or AmerenIllinoiswouldnotberequiredtopostadditional collateralorotherassurancesforcertaintradeobligations.
Ifmarketpriceswere15%lowerthanDecember31,2014 levelsinthenext12monthsand20%lowerthereafter throughtheendofthetermofthecommoditycontracts, thenAmeren,AmerenMissouri,orAmerenIllinoiscouldbe requiredtopostadditionalcollateralorotherassurancesforcertaintradeobligationsupto$25million,$14million,and
$11million,respectively.ThebalanceofMarketingCompany'snotepayabletoAmerenforcashcollateralrequirementswas$12millionat December31,2014.Thisbalancewillvaryuntil December2,2015,ascashcollateralrequirementscaused bychangesincommoditypricescouldtriggeradditional collateralpostingsandprepaymentsforNewAERandthus affectthebalanceofthenote.Ameren'sobligationto providecreditsupportonbehalfofNewAERwillceaseon December2,2015.Ifmarketpriceswere15%higherthan theirDecember31,2014levelsinthenext12monthsand 20%higherthereafterthroughtheendofthetermofthe commoditycontracts,thenAmerencouldberequiredto provideadditionalcreditsupporttoIPH,upto$26million.
Ifmarketpriceswere15%lowerthantheirDecember31, 2014levelsinthenext12monthsand20%lowerthereafter throughtheendofthetermofthecommoditycontracts, thenAmerencouldberequiredtoprovideIPHwith additionalcreditsupportupto$31million.If,on December31,2014,Ameren'screditratingshadbeen belowinvestmentgrade,Amerencouldhavebeenrequired topostadditionalcashcollateralinsupportofNewAERin theamountof$26million.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8,ofthisreport forinformationregardingAmeren(parent)guarantees.
OUTLOOKWeseektoearncompetitivereturnsoninvestmentsinourbusinesses.Weareseekingtoimproveourregulatoryframeworksandcostrecoverymechanismsand simultaneouslypursuingconstructiveregulatoryoutcomes withinexistingframeworks.Weareseekingtoalignour overallspending,bothoperatingandcapital,witheconomic conditionsandcashflowsprovidedbyourregulators.
Consequently,wearefocusedonminimizingthegap betweenallowedandearnedreturnsonequity.Weintendto allocatecapitalresourcestoourbusinessopportunitiesthat offerthemostattractiverisk-adjustedreturnpotential.Belowaresomekeytrends,events,anduncertaintiesthatarereasonablylikelytoaffecttheAmerenCompanies' resultsofoperations,financialcondition,orliquidity,aswell astheirabilitytoachievestrategicandfinancialobjectives, for2015andbeyond.
Operations Ourstrategyforearningcompetitivereturnsonourinvestmentsinvolvesmeetingcustomerenergyneeds inanefficientfashion,workingtoenhanceregulatory frameworks,makingtimelyandwell-supportedrate casefilings,andaligningoverallspendingwiththose ratecaseoutcomes,economicconditions,andreturn
opportunities.
AmerencontinuestopursueitsplanstoinvestinFERC-regulatedelectrictransmission.MISOhasapproved threeelectrictransmissionprojectstobedevelopedby 57 ATXI.Thefirstproject,IllinoisRivers,involvestheconstructionofa345-kilovoltlinefromwesternIndiana acrossthestateofIllinoistoeasternMissouri.Thefirst sectionsoftheIllinoisRiversprojectareexpectedtobe completedin2016.Thelastsectionofthisprojectis expectedtobecompletedby2019.TheSpoonRiver projectinnorthwestIllinoisandtheMarkTwainproject innortheastMissouriaretheothertwoMISO-approved projectstobeconstructedbyATXI.Thesetwoprojects areexpectedtobecompletedin2018.Thetotal investmentinthesethreeprojectsisexpectedtobe morethan$1.4billionduring2015through2019.This totalincludesover$100millionofinvestmentby AmerenIllinoistoconstructconnectionstoitsexisting transmissionsystem.Separatefromthethreeprojects discussedabove,AmerenIllinoisexpectstoinvest approximately$900millioninelectrictransmission assetsduring2015through2019toaddressload growthandreliabilityrequirements.
InNovember2013,acustomergroupfiledacomplaint casewiththeFERCseekingareductionintheallowed basereturnoncommonequityfortheFERC-regulated MISOtransmissionratebaseundertheMISOtariffto 9.15%.Currently,theFERC-allowedbasereturnon commonequityforMISOtransmissionownersis 12.38%.However,the12.38%returnisthesubjectof twoFERCcomplaintproceedingsthatchallengethe allowedreturnoncommonequityforMISO transmissionowners.InJanuary2015,theFERC scheduledtheinitialcaseforhearingproceedings, requiringaninitialdecisiontobeissuednolaterthan November30,2015.A50basispointreductioninthe FERC-allowedreturnoncommonequitywouldreduce Ameren'sandAmerenIllinois'2015earningsbyan estimated$4millionand$2million,respectively,based onprojectedratebase.Thefinaloutcomeofthese proceedingscouldresultinarefundtocustomers retroactivetoNovember2013andhaveamaterial impactontheresultsofoperations,financialposition, andliquidityofAmerenandAmerenIllinois.
InJanuary2015,FERCapprovedourrequestto implementanincentiveadderofupto50basispoints ontheallowedbasereturnoncommonequity prospectivelyfromJanuary6,2015,andtodefer collectionoftheincentiveadderuntiltheissuanceof thefinalorderaddressingtheinitialMISOcomplaint casediscussedabove.
BothAmerenIllinoisandATXIhaveFERCauthorization toemployaforward-lookingratecalculationwithan annualrevenuerequirementreconciliationforeach company'selectrictransmissionbusiness.Usingthe ratesthatbecameeffectiveonJanuary1,2015,andan assumed12.38%returnonequity,AmerenIllinois expectsthatthe2015revenuerequirementforits electrictransmissionbusinesstobe$199million, whichrepresentsa$40millionincreaseoverthe2014 revenuerequirementbecauseofratebasegrowth.
Theseratesalsoreflectacapitalstructurecomposedof approximately54%commonequityandaratebaseof
$890million.UsingtheratesthatbecameeffectiveonJanuary1,2015,andanassumed12.38%returnon equity,ATXIexpectsthatthe2015revenuerequirement foritselectrictransmissionbusinesstobe$80million, whichrepresentsa$46millionincreaseoverthe2014 revenuerequirementbecauseofratebasegrowth, primarilyrelatingtotheIllinoisRiversproject.These ratesalsoreflectacapitalstructurecomposedof approximately56%commonequity,andaratebaseof
$536million.
InFebruary2015,AmerenMissourifiledanamended requestwiththeMoPSCseekingapprovaltoincrease itsannualrevenuesforelectricserviceby approximately$190million.TheMoPSCproceedings relatingtotheproposedelectricservicerateincrease areongoingandadecisionbytheMoPSCisexpected byMay2015,withnewrateseffectivebyJune2015.
AmerenMissouri'scurrentMEEIAplanprovidesfora cumulativeinvestmentincustomerenergyefficiency programsof$147millionduring2013through2015.
InDecember2014,AmerenMissourifiledanew proposedenergyefficiencyplanwiththeMoPSCunder theMEEIA.Thisplanincludesaportfolioofcustomer energyefficiencyprogramsalongwithacostrecovery mechanism.Iftheplanisapproved,beginningin January2016,AmerenMissouriintendstoinvest
$135millionoverthreeyearsfortheproposed customerenergyefficiencyprograms.
InJanuary2015,AmerenIllinoisfiledarequestwith theICCseekingapprovaltoincreaseitsannual revenuesfornaturalgasdeliveryserviceby$53million.
AdecisionbytheICCinthisproceedingisrequiredby December2015andnewratesareexpectedtobe effectiveinJanuary2016.
TheIEIMAprovidesforanannualreconciliationofthe revenuerequirementnecessarytoreflecttheactual costsincurredinagivenyearwiththerevenue requirementthatwasreflectedincustomerratesfor thatyear.Consequently,AmerenIllinois'2015electric deliveryservicerevenueswillbebasedonits2015 actualrecoverablecosts,ratebase,andreturnon commonequityascalculatedundertheIEIMA's performance-basedformularatemakingframework.
The2015revenuerequirementisexpectedtobehigher thanthe2014revenuerequirement,duetoanexpected increaseinrecoverablecostsandratebasegrowth.A 50basispointchangeintheaveragemonthlyyieldsof the30-yearUnitedStatesTreasurybondswouldresult inanestimated$6millionchangeinAmeren'sand AmerenIllinois'2015netincome.
InDecember2014,theICCissuedanorderwith respecttoAmerenIllinois'annualupdatefiling.TheICC approveda$204millionincreaseinAmerenIllinois' electricdeliveryservicerevenuerequirement,beginning inJanuary2015.Theserateshaveaffectedandwill continuetoaffectAmerenIllinois'cashreceiptsduring 2015,butwillnotbethesoledeterminantofitselectric deliveryserviceoperatingrevenues,whichwillinstead belargelydeterminedbytheIEIMA's2015revenue requirementreconciliation.The2015revenue requirementreconciliation,asdiscussedabove,is 58 expectedtoresultinaregulatoryassetthatwillbecollectedfromcustomersin2017.
AmerenMissouri'snextscheduledrefuelingand maintenanceoutageatitsCallawayenergycenterwill beinthespringof2016.Duringthe2014refueling, AmerenMissouriincurredmaintenanceexpensesof
$36million.Duringascheduledoutage,whichoccurs every18months,maintenanceexpensesincrease relativetonon-outageyears.Additionally,dependingon theavailabilityofitsothergenerationsourcesandthe marketpricesforpower,AmerenMissouri'spurchased powercostsmayincreaseandtheamountofexcess poweravailableforsalemaydecreaseversusnon-outageyears.Changesinpurchasedpowercostsand excesspoweravailableforsaleareincludedintheFAC, resultinginlimitedimpactstoearnings.
AsofDecember31,2014,AmerenMissourihad capitalized$69millionofcostsincurredtolicense additionalnucleargenerationatitsCallawayenergy site.In2009,AmerenMissourisuspendeditseffortsto buildanewnuclearunitattheCallawaysite,andthe NRCsuspendedreviewoftheCOLapplication.The suspendedstatusoftheCOLapplicationcurrently extendsthroughtheendof2015.Ifeffortstolicense additionalnucleargenerationareabandoned,theNRC doesnotextendtheCOLapplicationsuspendedstatus, orifmanagementconcludesthatitisprobablethe costsincurredwillbedisallowedinrates,achargeto earningswouldberecognizedintheperiodinwhich thatdeterminationwasmade.
AmerenMissouriisengagedinlitigationwithan insurertorecoveranunpaidliabilityinsuranceclaimfor theDecember2005breachoftheupperreservoirat AmerenMissouri'sTaumSaukpumped-storage hydroelectricenergycenter.Ameren'sandAmeren Missouri'sresultsofoperations,financialposition,and liquiditycouldbeadverselyaffectedifAmeren Missouri'sremainingliabilityinsuranceclaimof
$41millionasofDecember31,2014,isnotpaidbythe
insurer.UndertheprovisionsoftheCSRA,AmerenIllinois receivedICCapprovalforitsQIPriderinJanuary2015 andsubsequentlybeganincludingqualified investmentsandrecordingrevenueunderthis regulatoryframework.AmerenIllinoiswillstart recoveringcostsfromtheseinvestmentsinMarch
2015.Aswecontinuetoexperiencecostincreasesandto makeinfrastructureinvestments,AmerenMissouriand AmerenIllinoisexpecttoseekregularelectricand naturalgasrateincreasesandtimelycostrecoveryand trackingmechanismsfromtheirregulators.Ameren MissouriandAmerenIllinoiswillalsoseek,as necessary,legislativesolutionstoaddresscost recoverypressuresandtosupportinvestmentintheir energyinfrastructure.Thesepressuresincludelimited economicgrowthintheirserviceterritories,customer conservationefforts,theimpactsofadditional customerenergyefficiencyprograms,increased investmentsandexpectedfutureinvestmentsforenvironmentalcompliance,systemreliability improvements,andnewgenerationcapacity,including renewableenergyrequirements.Increasedinvestments alsoresultinhigherdepreciationandfinancingcosts.
Increasedcostsarealsoexpectedfromrisingemployee benefitcostsandhigherpropertyandincometaxes, amongothers.Foradditionalinformationregardingrecentrateordersandrelatedappeals,pendingrequestsfiledwithstateand federalregulatorycommissions,TaumSaukmatters,and separateFERCordersaffectingAmerenMissouriand AmerenIllinois,seeNote2-RateandRegulatoryMatters, Note10-CallawayEnergyCenter,andNote15-CommitmentsandContingenciesunderPartII,Item8,of thisreport.LiquidityandCapitalResources Weexpecttoincursignificantcapitalexpendituresinordertomakeinvestmentstoimproveourelectricand naturalgasutilityinfrastructureandtocomplywith existingenvironmentalregulations.Weestimatethat wewillincurupto$9.3billion(AmerenMissouri-up to$3.9billion;AmerenIllinois-upto$4.0billion;ATXI-upto$1.4billion)ofcapitalexpendituresduringtheperiodfrom2015through2019.
Existingandfutureenvironmentalregulations, includingthoserelatedtogreenhousegasemissions, orotheractionstakenbytheEPA,couldresultin significantincreasesincapitalexpendituresand operatingcosts.Theseexpensescouldbeprohibitiveat someofAmerenMissouri'scoal-firedenergycenters.
AmerenMissouri'scapitalexpendituresaresubjectto MoPSCprudencereviews,whichcouldresultincost disallowancesaswellasregulatorylag.Ameren'sand AmerenMissouri'searningscouldbenefitfrom increasedinvestmenttocomplywithenvironmental regulationsifthoseinvestmentsarereflectedand recoveredtimelyinrates.
AmerenMissouricontinuestoevaluateitslonger-term needsfornewbaseloadandpeakingelectricgeneration capacity.AmerenMissourifilesanon-binding integratedresourceplanwiththeMoPSCeverythree years.AmerenMissouri'sintegratedresourceplanfiled withtheMoPSCinOctober2014isa20-yearplanthat supportsamorefuel-diverseenergyportfolioin Missouri,includingcoal,solar,wind,naturalgasand nuclearpower.Theplanincludesexpandingrenewable generation,retiringcoal-firedgenerationasenergy centersreachtheendoftheirusefullives,andadding natural-gas-firedcombinedcyclegeneration.Ameren Missouricontinuestostudyfuturealternatives, includingadditionalcustomerenergyefficiency programs,thatcouldhelpdefernewenergycenter construction.AmerenMissouri'sintegratedresource planisprojectedtoachievethecarbonemissions reductionsproposedintheEPA'sCleanPowerPlanby 2035,ratherthantheEPA'sfinaltargetdateof2030or itsinterimtargetdatesbeginningin2020.
59 AmerenMissouricontinuestoevaluateitspotentialcomplianceplansfortheproposedCleanPowerPlan.
PreliminarystudiessuggestthatiftheproposedClean PowerPlanweretobefinalizedinitscurrentform, AmerenMissourimayneedtoincurneworaccelerated capitalexpendituresandincreasedfuelcostsinorderto achievecompliance.Asproposed,theCleanPower Planwouldrequirethestates,includingMissouriand Illinois,tosubmitcomplianceplansasearlyas2016.
Thestates'complianceplansmightrequireAmeren Missouritoconstructnatural-gas-firedcombinedcycle generationandrenewablegeneration,currently estimatedtocostapproximately$2billionby2020,that AmerenMissouribelieveswouldotherwisenotbe necessarytomeettheenergyneedsofitscustomers.
Additionally,Missouri'simplementationofthe proposedrules,ifadopted,couldresultintheclosure oralterationoftheoperationofsomeofAmeren Missouri'scoalandnaturalgas-firedenergycenters, whichcouldresultinincreasedoperatingcostsor impairmentofassets.
Tofundinvestmentrequirementsofourbusinesses,weseektomaintainaccesstothecapitalmarketsat commerciallyattractiverates.Weseektoenhance regulatoryframeworksandreturnsinordertoimprove liquidity,creditmetrics,andrelatedaccesstocapital.
InDecember2014,theAmerenCompaniesamendedandrestatedtheircreditagreementstocumulatively provide$2.1billionofcreditthroughDecember11, 2019,subjecttoa364-dayrepaymentterminthecase ofAmerenMissouriandAmerenIllinois.SeeNote4-Short-termDebtandLiquidityunderPartII,Item8,of thisreportforadditionalinformationregardingthe 2012CreditAgreements.Ameren,AmerenMissouri, andAmerenIllinoisbelievethattheirliquidityis adequategiventheircashfromoperatingactivities, capitalexpenditures,andrelatedfinancingplans.
However,therecanbenoassurancethatsignificant changesineconomicconditions,disruptionsinthe capitalandcreditmarkets,orotherunforeseenevents willnotmateriallyaffecttheirabilitytoexecutetheir expectedoperating,capital,orfinancingplans.
AsofDecember31,2014,Amerenhad$531millionintaxbenefitsfromfederalandstatenetoperatingloss carryforwards(AmerenMissouri-$86millionand AmerenIllinois-$137million)and$131millionin federalandstateincometaxcreditcarryforwards (AmerenMissouri-$21millionandAmerenIllinois-$2million).Thesetaxbenefitsarestillsubjecttoaudits andexaminationsbytaxingauthorities.Consistentwith thetaxallocationagreementbetweenAmerenandits subsidiaries,thesecarryforwardsareexpectedto partiallyoffsetincometaxliabilitiesforAmeren MissouriandAmerenIllinoisduring2015and2016, whileAmerendoesnotexpecttomakematerialfederal incometaxpaymentsuntil2017.Inaddition,Ameren has$55millionofexpectedincometaxrefundsand stateoverpaymentsthatwilloffsetincometaxliabilities into2017.Thesetaxbenefits,primarilyattheAmeren (parent)level,whenrealized,willbeavailabletofund electrictransmissioninvestments,specificallyATXI's IllinoisRiversproject.
Amerenexpectsitscashusedforcapitalexpenditures anddividendstoexceedcashprovidedbyoperating activitiesoverthenextseveralyears.Amerendoesnot expecttheneedforpublicequityissuancestofund suchcashshortfalls,butmayconsiderissuingstock throughitsDRPlusandits401(k)plans.
Theuseofcashfromoperatingactivitiesandshort-termborrowingstofundcapitalexpendituresandother long-terminvestmentsmayperiodicallyresultina workingcapitaldeficit,asdefinedbycurrentliabilities exceedingcurrentassets,aswasthecaseat December31,2014.Theworkingcapitaldeficitasof December31,2014,wasprimarilytheresultofour relianceoncommercialpaperissuances,asopposedto long-termdebtissuances.Amereniscurrently evaluatingoptionsforrefinancingtheshort-termdebt includingtheissuanceoflong-termnotes.Amerenhad
$714millionofcommercialpaperissuances outstandingasofDecember31,2014.Withthe2012 CreditAgreements,Amerenhasaccessto$2.1billion ofcreditcapacity,ofwhich$1.4billionwasavailableat December31,2014.Theaboveitemscouldhaveamaterialimpactonourresultsofoperations,financialposition,orliquidity.
Additionally,intheordinarycourseofbusiness,weevaluate strategiestoenhanceourresultsofoperations,financial position,orliquidity.Thesestrategiesmayinclude acquisitions,divestitures,andopportunitiestoreducecosts orincreaserevenues,andotherstrategicinitiativesto increaseAmeren'sstockholdervalue.Weareunableto predictwhich,ifany,oftheseinitiativeswillbeexecuted.
Theexecutionoftheseinitiativesmayhaveamaterial impactonourfutureresultsofoperations,financial position,orliquidity.REGULATORYMATTERSSeeNote2-RateandRegulatoryMattersunderPartII,Item8,ofthisreport.ACCOUNTINGMATTERSCriticalAccountingEstimatesPreparationofthefinancialstatementsandrelateddisclosuresincompliancewithGAAPrequirestheapplicationofappropriatetechnicalaccountingrulesandguidance,aswellastheuseofestimates.Theseestimatesinvolvejudgmentsregardingmanyfactorsthatinandofthemselvescouldmateriallyaffectthefinancialstatementsanddisclosures.Wehaveoutlinedbelowthecriticalaccountingestimatesthatwebelievearethemostdifficult,subjective,orcomplex.Anychangein theassumptionsorjudgmentsappliedindeterminingthefollowingmatters,amongothers,couldhaveamaterialimpacton futurefinancialresults.
60 AccountingEstimateUncertaintiesAffectingApplicationRegulatoryMechanismsandCostRecoveryWedefercostsinaccordancewithauthoritativeaccountingguidanceandmakeinvestmentsthatwe assumewillbecollectedinfuturerates.
Regulatoryenvironmentandexternalregulatory decisionsandrequirements Anticipatedfutureregulatorydecisionsandour assessmentoftheirimpact Impactofderegulation,ratefreezes,prudencereviews, andoppositionduringtheratemakingprocessthatmay limitourabilitytotimelyrecovercosts AmerenIllinois'assessmentofandabilitytoestimate thecurrentyear'selectricdeliveryservicecoststobe reflectedinrevenuesandrecoveredfromcustomersin asubsequentyearundertheIEIMAperformance-based formularatemakingprocess AmerenIllinois'andATXI'sassessmentofandabilityto estimatethecurrentyear'selectrictransmissionservice coststobereflectedinrevenuesandrecoveredfrom customersinasubsequentyearundertheFERC ratemakingprocess AmerenMissouri'sestimateofrevenuerecoveryunder theMEEIABasisforJudgment Wedeterminewhichcostsarerecoverablebyreviewingpreviousrulingsbyregulatoryauthoritiesinjurisdictionswherewe operateandanyotherfactorsthatmayindicatewhethercostrecoveryisprobable.Iffactsandcircumstancesleadusto concludethatarecordedregulatoryassetisnolongerprobableofrecoveryorthatplantassetsareprobableofdisallowance, werecordachargetoearnings,whichcouldbematerial.AmerenIllinoisestimatesitsannualrevenuerequirementpursuant totheIEIMAforinterimperiodsbyusinginternalforecastedinformation,suchasprojectedoperationsandmaintenance expenses,depreciationexpense,taxesotherthanincometaxes,andratebase,aswellaspublishedforecasteddataregarding thatyear'smonthlyaverageyieldsofthe30-yearUnitedStatesTreasurybonds.AmerenIllinoisestimatesitsannualrevenue requirementasofDecember31ofeachyearusingthatyear'sactualoperatingresultsandassessestheprobabilityof recoveryfromorrefundtocustomersthattheICCwillorderattheendofthefollowingyear.Variationsincostsincurred, investmentsmade,orordersbytheICCorcourtscanresultinasubsequentchangeinAmerenIllinois'estimate.Ameren IllinoisandATXIfollowasimilarprocessfortheirFERCrate-regulatedelectrictransmissionbusinesses.AmerenMissouri estimateslostrevenuesresultingfromthecustomerenergyefficiencyprogramsimplementedbytheMEEIA.AmerenMissouriusesaMEEIAridertocollectfromorrefundtocustomersanyannualdifferenceintheactualamountsincurredand theamountscollectedfromcustomers.SeeNote2-RateandRegulatoryMattersunderPartII,Item8,ofthisreportfor quantificationoftheseassetsforeachoftheAmerenCompanies.SeeNote1-SummaryofSignificantAccountingPolicies underPartII,Item8,ofthisreportforalistingofregulatorymechanismsusedbyAmerenMissouriandAmerenIllinois.BenefitPlanAccountingBasedonactuarialcalculations,weaccruecostsof providingfutureemployeebenefitsinaccordancewith authoritativeaccountingguidanceregardingbenefitplans.
SeeNote11-RetirementBenefitsunderPartII,Item8, ofthisreport.
Futurerateofreturnonpensionandotherplanassets Valuationinputsandassumptionsusedinthefairvalue measurementsofplanassets,excludingthoseinputs thatarereadilyobservable Interestratesusedinvaluingbenefitobligations Healthcarecosttrendrates Timingofemployeeretirementsandmortality
assumptions Abilitytorecovercertainbenefitplancostsfromour
ratepayers Changingmarketconditionsthatmayaffectinvestment andinterestrateenvironments Impactsofthefederalhealthcarereformlegislation enactedin2010 61 AccountingEstimateUncertaintiesAffectingApplicationBasisforJudgmentOurultimateselectionofthediscountrate,healthcaretrendrate,andexpectedrateofreturnonpensionandother postretirementbenefitplanassetsisbasedonourconsistentapplicationofassumption-settingmethodologiesandour reviewofavailablehistorical,current,andprojectedrates,asapplicable.Wealsomakemortalityassumptionsforestimatingourpensionandotherpostretirementbenefitobligations.During2014,AmerenadoptedtheSocietyofActuaries2014 MortalityTablesReportandMortalityImprovementScale.Theupdatedmortalitytablesassumeincreasinglifeexpectanciesforouremployeesandretirees,whichhasresultedinanincreasetoourpensionandotherpostretirementbenefit obligations.SeeNote11-RetirementBenefitsunderPartII,Item8,ofthisreportforsensitivityofAmeren'sbenefitplansto potentialchangesintheseassumptions.AccountingforContingenciesWemakejudgmentsandestimatesintherecordingand thedisclosingofliabilitiesforclaims,litigation, environmentalremediation,theactionsofvarious regulatoryagencies,orothermattersthatoccurinthe normalcourseofbusiness.Werecordalosscontingency whenitisprobablethataliabilityhasbeenincurredand thattheamountofthelosscanbereasonablyestimated.
Estimatingfinancialimpactofevents Estimatinglikelihoodofvariouspotentialoutcomes Regulatoryandpoliticalenvironmentsand
requirements Outcomeoflegalproceedings,settlements,orother
factorsChangesinregulation,expectedscopeofwork, technologyortimingofenvironmentalremediationBasisforJudgment Thedeterminationofalosscontingencyrequiressignificantjudgmentastotheexpectedoutcomeofeachcontingencyin futureperiods.Inmakingthedeterminationastotheamountofpotentiallossandtheprobabilityofloss,weconsiderall availableevidence,includingtheexpectedoutcomeofpotentiallitigation.Ifnoestimateisbetterthananotherwithinour rangeofestimates,werecordasourbestestimateofalosstheminimumvalueofourestimatedrangeofoutcomes.Asadditionalinformationbecomesavailable,wereassessthepotentialliabilityrelatedtothecontingencyandreviseour estimates.Inourevaluationoflegalmatters,managementconsultswithlegalcounselandreliesonanalysisofrelevantcase lawandlegalprecedents.SeeNote2-RateandRegulatoryMatters,Note10-CallawayEnergyCenter,Note15-CommitmentsandContingencies,andNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8, ofthisreportforinformationontheAmerenCompanies'contingencies.AccountingforIncomeTaxesBasedonauthoritativeaccountingguidance,werecord theprovisionforincometaxes,deferredtaxassetsand liabilities,andavaluationallowanceagainstnetdeferred taxassets,ifany.SeeNote13-IncomeTaxesunderPart II,Item8,ofthisreport.
Changesinbusiness,industry,laws,technology,or economicandmarketconditionsaffectingforecasted financialconditionand/orresultsofoperations Estimatesoftheamountandcharacteroffuturetaxable
incomeEnactedtaxratesapplicabletotaxableincomeinyears inwhichtemporarydifferencesarerecoveredorsettled Effectivenessofimplementingtaxplanningstrategies Changesinincometaxlaws Resultsofauditsandexaminationsbytaxing
authoritiesBasisforJudgment Thereportingoftax-relatedassetsrequirestheuseofestimatesandsignificantmanagementjudgment.Deferredtaxassets arerecordedtorepresentfutureeffectsonincometaxesfortemporarydifferencesbetweenthebasisofassetsforfinancial reportingandtaxpurposes.Althoughmanagementbelievesthatcurrentestimatesfordeferredtaxassetsarereasonable, actualresultscoulddifferfromtheseestimatesforavarietyofreasons,includingachangeinforecastedfinancialcondition and/orresultsofoperations,changeinincometaxlawsorenactedtaxrates,theform,structure,andtimingofassetorstock salesordispositions,andresultsofauditsandexaminationsbytaxingauthorities.Valuationallowancesagainstdeferredtaxassetsarerecordedwhenmanagementconcludesitismorelikelythannotsuchassetwillnotberealizedinfutureperiods.
Accountingforincometaxesalsorequiresthatonlytaxbenefitsforpositionstakenorexpectedtobetakenontaxreturns thatmeetthemore-likely-than-notrecognitionthresholdcanberecognizedorcontinuetoberecognized.Managementevaluateseachpositionsolelyonthetechnicalmeritsandfactsandcircumstancesoftheposition,assumingthattheposition willbeexaminedbyataxingauthoritythathasfullknowledgeofallrelevantinformation.Significantjudgmentisrequiredto determinerecognitionthresholdsandtherelatedamountoftaxbenefitstoberecognized.Ateachperiod-end,andasnew developmentsoccur,managementreevaluatesitstaxpositions.SeeNote13-IncomeTaxesunderPartII,Item8,ofthis reportfortheamountofdeferredtaxassetsanduncertaintaxpositionsrecordedatDecember31,2014.
62 AccountingEstimateUncertaintiesAffectingApplicationUnbilledRevenueAttheendofeachperiod,Ameren,AmerenMissouri,andAmerenIllinoisestimatetheusagethathasbeenprovided tocustomersbutnotyetbilled.Thisusageamount,along withaperunitprice,isusedtoestimateanunbilled
balance.Estimatingcustomerenergyusage Estimatingimpactsofweatherandotherusage-affectingfactorsfortheunbilledperiod Estimatinglossofenergyduringtransmissionand
deliveryBasisforJudgment Webaseourestimateofunbilledrevenueeachperiodonthevolumeofenergydelivered,asvaluedbyamodelofbilling cyclesandhistoricalusageratesandgrowthorcontractionbycustomerclassforourservicearea.Thisfigureisthen adjustedforthemodeledimpactofseasonalandweathervariationsbasedonhistoricalresults.Seethebalancesheetfor eachoftheAmerenCompaniesunderPartII,Item8,ofthisreportforunbilledrevenueamounts.ImpactofFutureAccountingPronouncementsSeeNote1-SummaryofSignificantAccountingPoliciesunderPartII,Item8,ofthisreport.EFFECTSOFINFLATIONANDCHANGINGPRICESAmeren'sratesforretailelectricandnaturalgasutilityserviceareregulatedbytheMoPSCandtheICC.Nonretail electricratesareregulatedbytheFERC.Rateregulationis generallybasedontherecoveryofhistoricalorprojected costs.Asaresult,revenueincreasescouldlagbehind changingprices.AmerenIllinoisparticipatesinthe performance-basedformularatemakingprocesspursuant totheIEIMAforitselectricdeliveryservicebusiness.
AmerenIllinoisisrequiredtopurchaseallofitspower throughprocurementprocessesadministeredbytheIPA.
Thecostofprocuredpowercanbeaffectedby inflation.WithintheIEIMAformula,themonthlyaverage yieldsof30-yearUnitedStatesTreasurybondsarethebasis forAmerenIllinois'returnonequity.Therefore,thereisa directcorrelationbetweentheyieldofUnitedStates Treasurybonds,whichareaffectedbyinflation,andthe earningsofAmerenIllinois'electricdistributionbusiness.
Inflationaffectsouroperations,earnings,stockholders' equity,andfinancialperformance.Thecurrentreplacementcostofourutilityplantsubstantiallyexceedsourrecordedhistoricalcost.Under existingregulatorypractice,onlythehistoricalcostofplant isrecoverablefromcustomers.Asaresult,customerrates designedtoproviderecoveryofhistoricalcoststhrough depreciationmightnotbeadequatetoreplaceplantin futureyears.AmerenMissourirecoversthecostoffuelforelectricgenerationandthecostofpurchasedpowerbyadjusting ratesasallowedthroughtheFAC.AmerenIllinoisrecovers powersupplycostsfromelectriccustomersbyadjusting ratesthrougharidermechanismtoaccommodatechanges inpowerprices.ChangesinthecostofelectrictransmissionservicesaffectAmerenMissouri,AmerenIllinois,andATXI.The FERCregulatestherateschargedandthetermsand conditionsforelectricwholesaleandunbundledretailtransmissionservices.BecausetheyaremembersofMISO, AmerenMissouri's,AmerenIllinois',andATXI's transmissionratesarecalculatedinaccordancewiththe rateformulascontainedinMISO'sFERC-approvedtariff.
UndertheMISOOATT,aportionoftherevenue requirementrelatedtocertainprojectseligibleforcost sharingisallocatedtomultipleMISOpricingzones.The remainingrevenuerequirementisassignedtothepricing zonewherethetransmissionassetsarelocated.Ameren MissouriusesarateformulathatisupdatedinJuneofeach year,whichisbasedontheprioryear'scostdata.The AmerenMissourizonalrateischargedtowholesale customersintheAMMOpricingzone.Thiszonalrateisnot directlychargedtoMissouriretailcustomers,becausethe MoPSCincludestransmission-relatedcostsinsetting bundledretailratesinMissouri.AmerenIllinoisandATXI havereceivedFERCapprovaltousecompany-specific, forward-lookingrateformulatemplatesinsettingtheir transmissionrates.Theseforward-lookingratesare updatedeachJanuarywithforecastedinformation.A reconciliationduringtheyear,whichadjustsfortheactual revenuerequirementandactualsalesvolumes,isusedto adjustbillingratesinasubsequentyear.InIllinois,the AMILpricingzonetransmissionrateischargeddirectlyto wholesalecustomersandalternativeretailelectricsuppliers thatserveunbundledretailload.ForAmerenIllinoisretail customerswhohavenotchosenanalternativeretailelectric supplier,theAMILpricingzonetransmissionrateandother MISO-relatedcostsarecollectedthrougharider mechanisminAmerenIllinois'retaildistributiontariffs.InourMissouriandIllinoisretailnaturalgasutilityjurisdictions,changesinnaturalgascostsaregenerally reflectedinbillingstonaturalgascustomersthroughPGA
clauses.SeeNote2-RateandRegulatoryMattersunderPartII,Item8,ofthisreportforadditionalinformationon ourcostrecoverymechanisms.
63 ITEM7A.QUANTITATIVEANDQUALITATIVEDISCLOSURESABOUTMARKETRISKMarketriskistheriskofchangesinvalueofaphysicalassetorafinancialinstrument,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.Ourriskmanagementobjectivesaretooptimizeourphysicalgeneratingassetsandtopursuemarket opportunitieswithinprudentriskparameters.Ourrisk managementpoliciesaresetbyariskmanagementsteering committee,whichiscomposedofsenior-levelAmeren officers,withAmerenboardofdirectorsoversight.InterestRateRiskWeareexposedtomarketriskthroughchangesininterestratesassociatedwith:
long-termandshort-termvariable-ratedebt; fixed-ratedebt; 30-yearUnitedStatesTreasurybonds;and definedpensionandpostretirementbenefitplans.Wemanageourinterestrateexposurebycontrollingtheamountofdebtinstrumentswithinourtotalcapitalizationportfolioandbymonitoringtheeffectsof marketchangesoninterestrates.Fordefinedpensionand postretirementbenefitplans,wecontrolthedurationand theportfoliomixofourplanassets.Thefollowingtablepresentstheestimatedincreaseinourannualinterestexpenseanddecreaseinnetincomeif interestratesweretoincreaseby1%onvariable-ratedebt outstandingatDecember31,2014:InterestExpenseNetIncome (a)Ameren..................$9$(5)AmerenMissouri..........3(2)AmerenIllinois
............(b)(b)(a)Calculationsarebasedonanestimatedtaxrateof39%,37%,and41%forAmeren,AmerenMissouri,andAmerenIllinois, respectively.(b)Lessthan$1million.AmerenIllinois'annualreturnonequityundertheformularatemakingprocessforitselectricdistributionbusinessisdirectlycorrelatedtotheaveragemonthlyyields of30-yearUnitedStatesTreasurybondsplus580basis pointsforaparticularorcalendaryear.TheyieldsonsuchbondsareoutsideofAmerenIllinois'control.A50basis pointchangeintheaveragemonthlyyieldsofthe30-year UnitedStatesTreasurybondswouldresultinanestimated
$6millionchangeinAmeren'sandAmerenIllinois'2015 netincome.CreditRiskCreditriskrepresentsthelossthatwouldberecognizedifcounterpartiesshouldfailtoperformascontracted.Exchange-tradedcontractsaresupportedbythe financialandcreditqualityoftheclearingmembersofthe respectiveexchangesandcarryonlyanominalcreditrisk.
Inallothertransactions,weareexposedtocreditriskinthe eventofnonperformancebythecounterpartiestothe transaction.SeeNote7-DerivativeFinancialInstruments underPartII,Item8,ofthisreportforinformationonthe potentiallossoncounterpartyexposureasofDecember31, 2014.Ourrevenuesareprimarilyderivedfromsalesordeliveryofelectricityandnaturalgastocustomersin MissouriandIllinois.Ourphysicalandfinancialinstruments aresubjecttocreditriskconsistingoftradeaccounts receivablesandexecutorycontractswithmarketrisk exposures.Theriskassociatedwithtradereceivablesis mitigatedbythelargenumberofcustomersinabroad rangeofindustrygroupswhomakeupourcustomerbase.
AtDecember31,2014,nononaffiliatedcustomer representedmorethan10%,intheaggregate,ofour accountsreceivable.Additionally,AmerenIllinoisfacesrisks associatedwiththepurchaseofreceivables.TheIllinois PublicUtilitiesActrequiresAmerenIllinoistoestablish electricutilityconsolidatedbillingandpurchaseof receivablesservices.Attheoptionofanalternativeretail electricsupplier,AmerenIllinoismayberequiredto purchasethesupplier'sreceivablesrelatingtoAmeren Illinois'deliveryservicecustomerswhoelectedtoreceive powersupplyfromthealternativeretailelectricsupplier.
Whenthatoptionisselected,AmerenIllinoisproduces consolidatedbillsfortheapplicableretailcustomers reflectingchargesforelectricdeliveryserviceand purchasedreceivables.AsofDecember31,2014,Ameren Illinois'balanceofpurchasedaccountsreceivable associatedwiththeutilityconsolidatedbillingandpurchase ofreceivablesserviceswas$28million.Theriskassociated withAmerenIllinois'electricandnaturalgastrade receivablesisalsomitigatedbyarateadjustment mechanismthatallowsAmerenIllinoistorecoverthe differencebetweenitsactualnetbaddebtwrite-offsunder GAAPandtheamountofnetbaddebtwrite-offsincludedin itsbaserates.AmerenMissouriandAmerenIllinois continuetomonitortheimpactofincreasingrateson customercollections.AmerenMissouriandAmerenIllinois makeadjustmentstotheirrespectiveallowancefordoubtful accountsasdeemednecessarytoensurethatsuch allowancesareadequatetocoverestimateduncollectible customeraccountbalances.
64 InDecember2013,AmerencompletedthedivestitureofNewAERtoIPH.ThetransactionagreementbetweenAmerenandIPHrequiresthatAmeren,through December2,2015,maintainsitsfinancialobligationsin existenceasofDecember2,2013underallcreditsupport arrangementsorobligationswithrespecttoNewAERand itssubsidiaries.Amerenmustalsoprovideanyadditional creditsupportthatmaybecontractuallyrequiredpursuant toanyofthecontractsofNewAER,anditssubsidiariesas oftheclosing.IPH,NewAERanditssubsidiariesand DynegyhaveagreedtoindemnifyAmerenforcertainlosses relatingtothiscreditsupport.IPH'sindemnification obligationsaresecuredbycertainAERGandGencoassets.
However,theseindemnificationobligationsandsecurity interestsmightnotcoveralllossesthatcouldbeincurred byAmereninconnectionwiththiscreditsupport.Dynegy emergedfromitsChapter11bankruptcycaseinOctober 2012.AsofDecember31,2014,Dynegy'screditratings weresub-investment-grade.NeitherIPHnorNewAERand itssubsidiarieshaveinvestmentgradecreditratings.
Dynegy,IPH,NewAER,ortheirsubsidiariesmightbe unabletopaytheirindemnityandotherobligationsunder thetransactionagreement,MarketingCompany'snoteto Ameren,orDynegy'slimitedguaranteetoAmeren,which couldhaveamaterialadverseimpactonAmeren'sresults ofoperations,financialposition,andliquidity.Asof December31,2014,thebalanceoftheMarketingCompany notetoAmerenwas$12million.AsofDecember31,2014, Amerenprovided$114millioninguaranteesand$9million inlettersofcreditrelatingtoitscreditsupportofNewAER.EquityPriceRiskOurcostsforprovidingdefinedbenefitretirementandpostretirementbenefitplansaredependentuponanumberoffactors,includingtherateofreturnonplanassets.
Amerenmanagesplanassetsinaccordancewiththe "prudentinvestor"guidelinescontainedinERISA.Ameren's goalistoensurethatsufficientfundsareavailableto providebenefitsatthetimetheyarepayable,whilealso maximizingtotalreturnonplanassetsandminimizing expensevolatilityconsistentwithitstoleranceforrisk.
Amerendelegatesinvestmentmanagementtospecialists.
Whereappropriate,Amerenprovidestheinvestment managerwithguidelinesthatspecifyallowableand prohibitedinvestmenttypes.Amerenregularlymonitors managerperformanceandcompliancewithinvestment
guidelines.Theexpectedreturnonplanassetsisbasedonhistoricalandprojectedratesofreturnforcurrentand plannedassetclassesintheinvestmentportfolio.Projected ratesofreturnforeachassetclassareestimatedafteran analysisofhistoricalexperience,futureexpectations,and thevolatilityofthevariousassetclasses.Afterconsidering thetargetassetallocationforeachassetclass,weadjust theoverallexpectedrateofreturnfortheportfoliofor historicalandexpectedexperienceofactiveportfolio managementresultscomparedwithbenchmarkreturns, andfortheeffectofexpensespaidfromplanassets.Infutureyears,thecostsofsuchplanswillbereflectedinnetincomeorregulatoryassets.Contributionstothe planscouldincreasemateriallyifwedonotachievepension andpostretirementassetportfolioinvestmentreturnsequal toorinexcessofour2015assumedreturnonplanassets of7.25%and7.00%,respectively.AmerenMissourialsomaintainsatrustfund,asrequiredbytheNRCandMissourilaw,tofundcertaincosts ofnuclearplantdecommissioning.AsofDecember31, 2014,thisfundwasinvestedindomesticequitysecurities (67%)anddebtsecurities(33%).AsofDecember31, 2014,thetrustfundtotaled$549million(2013-
$494million).Bymaintainingaportfoliothatincludeslong-termequityinvestments,AmerenMissouriseeksto maximizethereturnstobeusedtofundnuclear decommissioningcostswithinacceptableparametersof risk.However,theequitysecuritiesincludedintheportfolio areexposedtopricefluctuationsinequitymarkets.The debtsecuritiesareexposedtochangesininterestrates.
AmerenMissouriactivelymonitorstheportfolioby benchmarkingtheperformanceofitsinvestmentsagainst certainindicesandbymaintainingandperiodically reviewingestablishedtargetallocationpercentagesofthe trustassetstovariousinvestmentoptions.Ameren Missouri'sexposuretoequitypricemarketriskisinlarge partmitigatedbecauseAmerenMissouriiscurrently allowedtorecoveritsdecommissioningcosts,whichwould includeunfavorableinvestmentresults,throughelectric
rates.Additionally,Amerenhascompany-ownedlifeinsurancecontractsthatareusedtosupportAmeren's deferredcompensationplans.Theselifeinsurancecontracts includeequityanddebtinvestmentsthatareexposedto pricefluctuationsinequitymarketsandtochangesin interestrates.CommodityPriceRiskWithregardtoAmerenMissouri'sandAmerenIllinois'electricandnaturalgasdistributionbusinesses,exposuretochangingmarketpricesisinlargepartmitigatedbythefact thattherearecostrecoverymechanismsinplace.These costrecoverymechanismsallowAmerenMissouriand AmerenIllinoistopassontoretailcustomersprudently incurredcostsforfuel,purchasedpower,andnaturalgas
supply.AmerenMissouri'sandAmerenIllinois'strategyisdesignedtoreducetheeffectofmarketfluctuationsfortheir regulatedcustomers.Theeffectsofpricevolatilitycannot beeliminated.However,procurementandsalesstrategies involveriskmanagementtechniquesandinstruments,as wellasthemanagementofphysicalassets.AmerenMissourihasaFACthatallowsittorecover,throughcustomerrates,95%ofchangesinfueland purchasedpowercosts,includingtransportationcharges andrevenues,netofoff-systemsales,greaterorlessthan theamountsetinbaserates,withoutatraditionalrate proceeding,subjecttoMoPSCprudencereview.Ameren 65 Missouriremainsexposedtotheremaining5%ofsuch changes.AmerenIllinoishasacostrecoverymechanismforpowerpurchasedonbehalfofitscustomers.Ameren Illinoisisrequiredtoserveastheprovideroflastresortfor electriccustomerswithinitsterritorywhohavenotchosen analternativeretailelectricsupplier.AmerenIllinoisdoes notgenerateearningsbasedontheresaleofpowerbut ratheronthedeliveryofenergy.AmerenIllinoispurchases powerprimarilythroughMISO,withadditionalprocurement eventsadministeredbytheIPA.TheIPAhasproposedand theICChasapprovedmultipleprocurementeventscovering portionsofyearsthrough2018.In2014,approximately 741,000retailcustomers,representing74%ofAmeren Illinois'annualretailkilowatthoursales,hadelectedto purchasetheirelectricityfromanalternativeretailelectric supplier.AmerenIllinoisexpectsfullrecoveryofits purchasedpowercosts.AmerenMissouriandAmerenIllinoishavePGAclausesthatpermitcostsincurredfornaturalgastobe recovereddirectlyfromutilitycustomerswithouta traditionalrateproceeding,subjecttoprudencereview.Withregardtoourexposureforcommoditypriceriskforconstructionandmaintenanceactivities,Amerenis exposedtochangesinmarketpricesformetalcommodities andtolaboravailability.SeeTransmissionandSupplyofElectricPowerunderPartI,Item1,ofthisreportforthepercentagesofour historicalneedssatisfiedbycoal,nuclear,naturalgas,oil, andrenewables.AlsoseeNote15-Commitmentsand ContingenciesunderPartII,Item8,ofthisreportfor additionalinformation.CommoditySupplierRiskTheuseofultra-low-sulfurcoalispartofAmerenMissouri'senvironmentalcompliancestrategy.Ameren Missourihasamultiyearagreementtopurchaseultra-low-sulfurcoalthrough2017tocomplywithenvironmental regulations.Thecoalcontractiswithasinglesupplier.
Disruptionsofthedeliveriesofthatultra-low-sulfurcoal fromthesuppliercouldcompromiseAmerenMissouri's abilitytooperateincompliancewithemissionstandards.
Othersourcesofultra-low-sulfurcoalarelimited,andthe constructionofpollutioncontrolequipmentrequires significantleadtimeifAmerenMissouriweretoexperience atemporarydisruptionofultra-low-sulfurcoaldeliveries thatcausedittoexhaustitsexistinginventory,andifother sourcesofultra-low-sulfurcoalwerenotavailable,Ameren Missouriwoulduseitsexistingemissionallowancesor purchaseemissionallowancestoachievecompliancewith environmentalregulations.Currently,theCallawayenergycenterusesnuclearfuelassembliesofadesignfabricatedbyonlyasinglesupplier.
ThatsupplieriscurrentlytheonlyNRC-licensedsupplier abletoprovidefuelassembliestotheCallawayenergy center.IfAmerenMissourishoulddecidetochangefuel suppliersortochangethetypeoffuelassemblydesignthat iscurrentlylicensedforuseattheCallawayenergycenter, upto3yearsofanalysisandlicensingeffortwouldbe requiredtofullyimplementsuchachange.FairValueofContractsWeusederivativesprincipallytomanagetheriskofchangesinmarketpricesfornaturalgas,power,anduranium,aswellastheriskofchangesinrailtransportationsurchargesthroughfueloilhedges.Thefollowingtablepresentsthefavorable (unfavorable)changesinthefairvalueofallderivativecontractsmarked-to-marketduringtheyearendedDecember31,2014.
Weusevariousmethodstodeterminethefairvalueofourcontracts.Inaccordancewithauthoritativeaccountingguidancefor fairvaluehierarchylevels,thesourcesweusedtodeterminethefairvalueofthesecontractswereactivequotes(Level1),
inputscorroboratedbymarketdata(Level2),andothermodelingandvaluationmethodsthatarenotcorroboratedbymarket data(Level3).SeeNote8-FairValueMeasurementsunderPartII,Item8,ofthisreportforadditionalinformationregarding themethodsusedtodeterminethefairvalueofthesecontracts.
Ameren Missouri AmerenIllinoisAmerenFairvalueofcontractsatbeginningofyear,net..................................................$9$(153)$(144)Contractsrealizedorotherwisesettledduringtheperiod
...........................................(15)3621Changesinfairvaluesattributabletochangesinvaluationtechniqueandassumptions...................---Fairvalueofnewcontractsenteredintoduringtheperiod..........................................(5)(16)(21)Otherchangesinfairvalue
..................................................................(17)(52)(69)Fairvalueofcontractsoutstandingatendofyear,net.............................................$(28)$(185)$(213) 66 ThefollowingtablepresentsmaturitiesofderivativecontractsasofDecember31,2014,basedonthehierarchylevelsusedtodeterminethefairvalueofthecontracts:SourcesofFairValue MaturityLessThan1Year Maturity1-3Years Maturity3-5YearsMaturityinExcessof5Years TotalFairValueAmerenMissouri:Level1........................................................$(16)$(6)$-$-$(22)Level2 (a).......................................................(1)(3)(2)-(6)Level3 (b).......................................................2(2)---
Total..........................................................$(15)$(11)$(2)$-$(28)AmerenIllinois:
Level1........................................................$-$-$-$-$-Level2 (a).......................................................(31)(12)--(43)Level3 (b).......................................................(10)(20)(18)(94)(142)
Total..........................................................$(41)$(32)$(18)$(94)$(185)
Ameren:
Level1........................................................$(16)$(6)$-$-$(22)Level2 (a).......................................................(32)(15)(2)-(49)Level3 (b).......................................................(8)(22)(18)(94)(142)
Total..........................................................$(56)$(43)$(20)$(94)$(213)(a)Principallyfixed-pricevs.floatingover-the-counterpowerswaps,powerforwards,andfixed-pricevs.floatingover-the-counternaturalgas swaps.(b)Principallypowerforwardcontractvaluesbasedoninformationfromexternalsources,historicalresults,andourestimates.Level3alsoincludesoptioncontractvaluesbasedonaBlack-Scholesmodel.ITEM8.FINANCIALSTATEMENTSANDSUPPLEMENTARYDATAReportofIndependentRegisteredPublicAccountingFirm TotheBoardofDirectorsandShareholdersofAmerenCorporation:Inouropinion,theconsolidatedfinancialstatementslistedintheindexappearingunderItem15(a)(1)presentfairly,inallmaterialrespects,thefinancialpositionofAmerenCorporationanditssubsidiariesatDecember31,2014and2013,andtheresultsoftheiroperationsandtheircashflowsforeachofthethreeyearsintheperiodendedDecember31,2014,in conformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.Inaddition,inouropinion,the financialstatementscheduleslistedintheindexappearingunderItem15(a)(2)presentfairly,inallmaterialrespects,the informationsetforththereinwhenreadinconjunctionwiththerelatedconsolidatedfinancialstatements.Also,inouropinion, theCompanymaintained,inallmaterialrespects,effectiveinternalcontroloverfinancialreportingasofDecember31,2014, basedoncriteriaestablishedinInternalControl-IntegratedFramework(2013)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO).TheCompany'smanagementisresponsibleforthesefinancialstatementsandfinancialstatementschedules,formaintainingeffectiveinternalcontroloverfinancialreportingandforitsassessmentof theeffectivenessofinternalcontroloverfinancialreporting,includedinManagement'sReportonInternalControlover FinancialReportingappearingunderItem9A.Ourresponsibilityistoexpressopinionsonthesefinancialstatements,onthe financialstatementschedules,andontheCompany'sinternalcontroloverfinancialreportingbasedonourintegratedaudits.
WeconductedourauditsinaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(United States).Thosestandardsrequirethatweplanandperformtheauditstoobtainreasonableassuranceaboutwhetherthe financialstatementsarefreeofmaterialmisstatementandwhethereffectiveinternalcontroloverfinancialreportingwas maintainedinallmaterialrespects.Ourauditsofthefinancialstatementsincludedexamining,onatestbasis,evidence supportingtheamountsanddisclosuresinthefinancialstatements,assessingtheaccountingprinciplesusedandsignificant estimatesmadebymanagement,andevaluatingtheoverallfinancialstatementpresentation.Ourauditofinternalcontrolover financialreportingincludedobtaininganunderstandingofinternalcontroloverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedonthe assessedrisk.Ourauditsalsoincludedperformingsuchotherproceduresasweconsiderednecessaryinthecircumstances.
Webelievethatourauditsprovideareasonablebasisforouropinions.Acompany'sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerally acceptedaccountingprinciples.Acompany'sinternalcontroloverfinancialreportingincludesthosepoliciesandprocedures that(i)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsand 67 dispositionsoftheassetsofthecompany;(ii)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthe company;and(iii)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,or dispositionofthecompany'sassetsthatcouldhaveamaterialeffectonthefinancialstatements.Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecomeinadequate becauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate./s/PricewaterhouseCoopersLLPPricewaterhouseCoopersLLPSt.Louis,Missouri March2,2015ReportofIndependentRegisteredPublicAccountingFirmTotheBoardofDirectorsandShareholdersofUnionElectricCompany:Inouropinion,thefinancialstatementslistedintheindexappearingunderItem15(a)(1)presentfairly,inallmaterialrespects,thefinancialpositionofUnionElectricCompanyatDecember31,2014and2013,andtheresultsofitsoperationsanditscash flowsforeachofthethreeyearsintheperiodendedDecember31,2014,inconformitywithaccountingprinciplesgenerally acceptedintheUnitedStatesofAmerica.Inaddition,inouropinion,thefinancialstatementschedulelistedintheindex appearingunderItem15(a)(2)presentsfairly,inallmaterialrespects,theinformationsetforththereinwhenreadin conjunctionwiththerelatedfinancialstatements.Thesefinancialstatementsandfinancialstatementschedulearethe responsibilityoftheCompany'smanagement.Ourresponsibilityistoexpressanopiniononthesefinancialstatementsand financialstatementschedulebasedonouraudits.Weconductedourauditsofthesestatementsinaccordancewiththe standardsofthePublicCompanyAccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanand performtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements, assessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,andevaluatingtheoverallfinancial statementpresentation.Webelievethatourauditsprovideareasonablebasisforouropinion./s/PricewaterhouseCoopersLLPPricewaterhouseCoopersLLPSt.Louis,MissouriMarch2,2015ReportofIndependentRegisteredPublicAccountingFirmTotheBoardofDirectorsandShareholdersofAmerenIllinoisCompany:Inouropinion,thefinancialstatementslistedintheindexappearingunderItem15(a)(1)presentfairly,inallmaterialrespects,thefinancialpositionofAmerenIllinoisCompanyatDecember31,2014and2013,andtheresultsofitsoperationsandits cashflowsforeachofthethreeyearsintheperiodendedDecember31,2014,inconformitywithaccountingprinciples generallyacceptedintheUnitedStatesofAmerica.Inaddition,inouropinion,thefinancialstatementschedulelistedinthe indexappearingunderItem15(a)(2)presentsfairly,inallmaterialrespects,theinformationsetforththereinwhenreadin conjunctionwiththerelatedfinancialstatements.Thesefinancialstatementsandfinancialstatementschedulearethe responsibilityoftheCompany'smanagement.Ourresponsibilityistoexpressanopiniononthesefinancialstatementsand financialstatementschedulebasedonouraudits.Weconductedourauditsofthesestatementsinaccordancewiththe standardsofthePublicCompanyAccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanand performtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements, assessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,andevaluatingtheoverallfinancial statementpresentation.Webelievethatourauditsprovideareasonablebasisforouropinion./s/PricewaterhouseCoopersLLPPricewaterhouseCoopersLLPSt.Louis,MissouriMarch2,2015 68 AMERENCORPORATIONCONSOLIDATEDSTATEMENTOFINCOME(LOSS)(Inmillions,exceptpershareamounts)YearEndedDecember31, 2014 2013 2012OperatingRevenues:
Electric$4,913$4,832$4,857 Gas 1,1401,006924Totaloperatingrevenues 6,0535,8385,781OperatingExpenses:
Fuel 826845714Purchasedpower 454502780Gaspurchasedforresale 615526472Otheroperationsandmaintenance 1,6911,6171,511Depreciationandamortization 745706673Taxesotherthanincometaxes 468458443Totaloperatingexpenses 4,7994,6544,593OperatingIncome 1,2541,1841,188OtherIncomeandExpenses:Miscellaneousincome 796970Miscellaneousexpense 222637Totalotherincome 574333InterestCharges 341398392IncomeBeforeIncomeTaxes 970829829IncomeTaxes 377311307IncomefromContinuingOperations 593518522LossfromDiscontinuedOperations,NetofTaxes(Note16)
(1)(223)(1,496)NetIncome(Loss) 592295(974)Less:NetIncome(Loss)AttributabletoNoncontrollingInterests:ContinuingOperations 6 66DiscontinuedOperations
--(6)NetIncome(Loss)AttributabletoAmerenCorporation:ContinuingOperations587512516DiscontinuedOperations(1)(223)(1,490)NetIncome(Loss)AttributabletoAmerenCorporation$586$289$(974)Earnings(Loss)perCommonShare-Basic:ContinuingOperations$2.42$2.11$2.13DiscontinuedOperations-(0.92)(6.14)Earnings(Loss)perCommonShare-Basic$2.42$1.19$(4.01)Earnings(Loss)perCommonShare-Diluted:ContinuingOperations$2.40$2.10$2.13DiscontinuedOperations-(0.92)(6.14)Earnings(Loss)perCommonShare-Diluted$2.40$1.18$(4.01)DividendsperCommonShare$1.61$1.60$1.60AverageCommonSharesOutstanding-Basic 242.6242.6242.6AverageCommonSharesOutstanding-Diluted 244.4244.5243.0Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
69 AMERENCORPORATIONCONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOME(LOSS)(Inmillions)YearEndedDecember31, 2014 2013 2012IncomefromContinuingOperations$593$518$522OtherComprehensiveIncome(Loss),NetofTaxes:Pensionandotherpostretirementbenefitplanactivity,netofincometaxes(benefit)of$(7),$16,and$(6),respectively (12)30(8)ComprehensiveIncomefromContinuingOperations 581548514Less:ComprehensiveIncomefromContinuingOperationsAttributabletoNoncontrollingInterests 6 66ComprehensiveIncomefromContinuingOperationsAttributabletoAmerenCorporation575542508LossfromDiscontinuedOperations,NetofTaxes(1)(223)(1,496)OtherComprehensiveIncome(Loss)fromDiscontinuedOperations,NetofIncomeTaxes(Benefit)of$-,$(10),and$40,respectively-(18)58ComprehensiveLossfromDiscontinuedOperations (1)(241)(1,438)Less:ComprehensiveIncomefromDiscontinuedOperationsAttributabletoNoncontrollingInterest
-12ComprehensiveLossfromDiscontinuedOperationsAttributabletoAmerenCorporation(1)(242)(1,440)ComprehensiveIncome(Loss)AttributabletoAmerenCorporation$574$300$(932)Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
70 AMERENCORPORATIONCONSOLIDATEDBALANCESHEET(Inmillions,exceptpershareamounts)December31, 2014 2013 ASSETSCurrentAssets:Cashandcashequivalents
$5$30Accountsreceivable-trade(lessallowancefordoubtfulaccountsof$21and$18,respectively) 423 404Unbilledrevenue 265 304Miscellaneousaccountsandnotesreceivable 81 196Materialsandsupplies 524 526Currentregulatoryassets 295 156Currentaccumulateddeferredincometaxes,net 352 106Othercurrentassets 86 85Assetsofdiscontinuedoperations(Note16) 15 165Totalcurrentassets 2,046 1,972PropertyandPlant,Net 17,424 16,205InvestmentsandOtherAssets:Nucleardecommissioningtrustfund 549 494 Goodwill 411 411Regulatoryassets 1,582 1,240Otherassets 664 720Totalinvestmentsandotherassets 3,206 2,865TOTALASSETS$22,676$21,042LIABILITIESANDEQUITYCurrentLiabilities:Currentmaturitiesoflong-termdebt$120$534Short-termdebt 714 368Accountsandwagespayable 711 806Taxesaccrued 46 55Interestaccrued 85 86Currentregulatoryliabilities 106 216Othercurrentliabilities 434 351Liabilitiesofdiscontinuedoperations(Note16) 33 45Totalcurrentliabilities 2,249 2,461Long-termDebt,Net 6,120 5,504DeferredCreditsandOtherLiabilities:Accumulateddeferredincometaxes,net 3,923 3,250Accumulateddeferredinvestmenttaxcredits 64 63Regulatoryliabilities 1,850 1,705Assetretirementobligations 396 369Pensionandotherpostretirementbenefits 705 466Otherdeferredcreditsandliabilities 514 538Totaldeferredcreditsandotherliabilities 7,452 6,391CommitmentsandContingencies(Notes2,10,15and16)AmerenCorporationStockholders'Equity:Commonstock,$.01parvalue,400.0sharesauthorized-sharesoutstandingof242.6 2 2Otherpaid-incapital,principallypremiumoncommonstock 5,617 5,632Retainedearnings 1,103 907Accumulatedothercomprehensiveincome(loss)
(9)3TotalAmerenCorporationstockholders'equity 6,713 6,544NoncontrollingInterests 142 142Totalequity 6,855 6,686TOTALLIABILITIESANDEQUITY$22,676$21,042Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
71 AMERENCORPORATIONCONSOLIDATEDSTATEMENTOFCASHFLOWS(Inmillions)YearEndedDecember31, 2014 2013 2012CashFlowsFromOperatingActivities:Netincome(loss)$592$295$(974)Lossfromdiscontinuedoperations,netoftax 12231,496Adjustmentstoreconcilenetincome(loss)tonetcashprovidedbyoperatingactivities:Depreciationandamortization 710666633Amortizationofnuclearfuel 817183Amortizationofdebtissuancecostsandpremium/discounts 222420Deferredincometaxesandinvestmenttaxcredits,net 451410257Allowanceforequityfundsusedduringconstruction (34)(37)(36)Stock-basedcompensationcosts 252729 Other (24)23(7)Changesinassetsandliabilities:
Receivables 31(60)30Materialsandsupplies 360(28)Accountsandwagespayable 1081(34)Taxesaccrued (44)(195)(4)Regulatoryassetsandliabilities (281)2914Assets,other 302040Liabilities,other (28)(14)5Pensionandotherpostretirementbenefits (10)(28)(23)Counterpartycollateral,net 224141Premiumspaidonlong-termdebtrepurchases
--(138)Netcashprovidedbyoperatingactivities-continuingoperations 1,5571,6361,404Netcashprovided(usedin)byoperatingactivities-discontinuedoperations (6)57286Netcashprovidedbyoperatingactivities 1,5511,6931,690CashFlowsFromInvestingActivities:Capitalexpenditures (1,785)(1,379)(1,063)Nuclearfuelexpenditures (74)(45)(91)Purchasesofsecurities-nucleardecommissioningtrustfund (405)(214)(403)Salesandmaturitiesofsecurities-nucleardecommissioningtrustfund 391196384Proceedsfromnotereceivable-MarketingCompany 95 6-Contributionstonotereceivable-MarketingCompany (89)(5)-Other 11120Netcashusedininvestingactivities-continuingoperations (1,856)(1,440)(1,153)Netcashprovidedby(usedin)investingactivities-discontinuedoperations 139(283)(157)Netcashusedininvestingactivities (1,717)(1,723)(1,310)CashFlowsFromFinancingActivities:Dividendsoncommonstock (390)(388)(382)Dividendspaidtononcontrollinginterestholders (6)(6)(6)Short-termdebt,net 346368(148)Maturities,redemptionsandrepurchasesoflong-termdebt (697)(399)(760)Issuancesoflong-termdebt 898278882Capitalissuancecosts (11)(2)(16)Other 1-4Netcashprovidedby(usedin)financingactivities-continuingoperations 141(149)(426)Netchangeincashandcashequivalents (25)(179)(46)Cashandcashequivalentsatbeginningofyear 30209255Cashandcashequivalentsatendofyear 530209Less:cashandcashequivalentsatendofyear-discontinuedoperations
--25Cashandcashequivalentsatendofyear-continuingoperations
$5$30$184Noncashfinancingactivity-dividendsoncommonstock$-$-$(7)CashPaid(Refunded)DuringtheYear:Interest(netof$18,$37,and$30capitalized,respectively)$333$393$433Incometaxes,net (27)81Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
72 AMERENCORPORATIONCONSOLIDATEDSTATEMENTOFSTOCKHOLDERS'EQUITY(Inmillions)December31, 2014 2013 2012CommonStock:Beginningofyear
$2$2$2Sharesissued
---Commonstock,endofyear 2 22OtherPaid-inCapital:Beginningofyear 5,6325,6165,598Stock-basedcompensationactivity (15)1618Otherpaid-incapital,endofyear 5,6175,6325,616RetainedEarnings:Beginningofyear 9071,0062,369Netincome(loss)attributabletoAmerenCorporation 586289(974)Dividends (390)(388)(389)Retainedearnings,endofyear 1,1039071,006AccumulatedOtherComprehensiveIncome(Loss):Derivativefinancialinstruments,beginningofyear
-257Changeinderivativefinancialinstruments
-(21)18Divestitureofderivativefinancialinstruments(Note16)
-(4)-Derivativefinancialinstruments,endofyear
--25Deferredretirementbenefitcosts,beginningofyear 3(33)(57)Changeindeferredretirementbenefitcosts (12)2924Divestitureofdeferredretirementbenefitcosts(Note16) Deferredretirementbenefitcosts,endofyear (9)3(33)Totalaccumulatedothercomprehensiveincome(loss),endofyear (9)3(8)TotalAmerenCorporationStockholders'Equity$6,713$6,544$6,616NoncontrollingInterests:Beginningofyear 142151149Netincomeattributabletononcontrollinginterestholders 6 6-Dividendspaidtononcontrollinginterestholders (6)(6)(6)Divestitureofnoncontrollinginterest(Note16)
-(9)-Other--8Noncontrollinginterests,endofyear 142142151TotalEquity$6,855$6,686$6,767Commonstocksharesatendofyear 242.6242.6242.6Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
73 UNIONELECTRICCOMPANY(d/b/aAMERENMISSOURI)STATEMENTOFINCOMEANDCOMPREHENSIVEINCOME(Inmillions)YearEndedDecember31, 2014 2013 2012OperatingRevenues:
Electric$3,388$3,379$3,132 Gas 164161139 Other 1 11Totaloperatingrevenues 3,5533,5413,272OperatingExpenses:
Fuel 826845714Purchasedpower 11912778Gaspurchasedforresale 827864Otheroperationsandmaintenance 946915827Depreciationandamortization 473454440Taxesotherthanincometaxes 322319304Totaloperatingexpenses 2,7682,7382,427OperatingIncome 785803845OtherIncomeandExpenses:Miscellaneousincome 605863Miscellaneousexpense 121114Totalotherincome 484749InterestCharges211210223IncomeBeforeIncomeTaxes 622640671IncomeTaxes229242252NetIncome 393398419OtherComprehensiveIncome-
--ComprehensiveIncome$393$398$419NetIncome$393$398$419PreferredStockDividends3 33NetIncomeAvailabletoCommonStockholder$390$395$416TheaccompanyingnotesastheyrelatetoAmerenMissouriareanintegralpartofthesefinancialstatements.
74 UNIONELECTRICCOMPANY(d/b/aAMERENMISSOURI)BALANCESHEET(Inmillions,exceptpershareamounts)December31, 2014 2013 ASSETSCurrentAssets:Cashandcashequivalents
$1$1Accountsreceivable-trade(lessallowancefordoubtfulaccountsof$8and$5,respectively) 190 191Accountsreceivable-affiliates 65 1Unbilledrevenue 146 168Miscellaneousaccountsandnotesreceivable 35 57Materialsandsupplies 347 352Currentregulatoryassets 163 118Othercurrentassets 92 71Totalcurrentassets 1,039 959PropertyandPlant,Net 10,867 10,452InvestmentsandOtherAssets:Nucleardecommissioningtrustfund 549 494Regulatoryassets 695 534Otherassets 391 465Totalinvestmentsandotherassets 1,635 1,493TOTALASSETS$13,541$12,904LIABILITIESANDSTOCKHOLDERS'EQUITYCurrentLiabilities:Currentmaturitiesoflong-termdebt$120$109Borrowingsfrommoneypool
-105Short-termdebt 97-Accountsandwagespayable 405 387Accountspayable-affiliates 56 30Taxesaccrued 32 220Interestaccrued 58 57Currentregulatoryliabilities 18 57Othercurrentliabilities 117 82Totalcurrentliabilities 903 1,047Long-termDebt,Net 3,879 3,648DeferredCreditsandOtherLiabilities:Accumulateddeferredincometaxes,net 2,806 2,524Accumulateddeferredinvestmenttaxcredits 61 59Regulatoryliabilities 1,147 1,041Assetretirementobligations 389 366Pensionandotherpostretirementbenefits 274 189Otherdeferredcreditsandliabilities 30 37Totaldeferredcreditsandotherliabilities 4,707 4,216CommitmentsandContingencies(Notes2,10,14and15)Stockholders'Equity:Commonstock,$5parvalue,150.0sharesauthorized-102.1sharesoutstanding 511 511Otherpaid-incapital,principallypremiumoncommonstock 1,569 1,560Preferredstock 80 80Retainedearnings 1,892 1,842Totalstockholders'equity 4,052 3,993TOTALLIABILITIESANDSTOCKHOLDERS'EQUITY$13,541$12,904TheaccompanyingnotesastheyrelatetoAmerenMissouriareanintegralpartofthesefinancialstatements.
75 UNIONELECTRICCOMPANY(d/b/aAMERENMISSOURI)STATEMENTOFCASHFLOWS(Inmillions)YearEndedDecember31, 2014 2013 2012CashFlowsFromOperatingActivities:Netincome$393$398$419Adjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivities:Depreciationandamortization 442419407Amortizationofnuclearfuel 817183FACprudencereviewcharges Amortizationofdebtissuancecostsandpremium/discounts 7 76Deferredincometaxesandinvestmenttaxcredits,net 24565287Allowanceforequityfundsusedduringconstruction (32)(31)(31)Other 3 18Changesinassetsandliabilities:
Receivables (10)(59)27Materialsandsupplies 845(48)Accountsandwagespayable 2542(27)Taxesaccrued (197)100(46)Regulatoryassetsandliabilities (68)68(50)Assets,other 521815Liabilities,other
-(29)14Pensionandotherpostretirementbenefits 1 22Premiumspaidonlong-termdebtrepurchases
--(62)Netcashprovidedbyoperatingactivities 9501,1431,004CashFlowsFromInvestingActivities:Capitalexpenditures (747)(648)(595)Nuclearfuelexpenditures (74)(45)(91)Purchasesofsecurities-nucleardecommissioningtrustfund (405)(214)(403)Salesandmaturitiesofsecurities-nucleardecommissioningtrustfund 391196384Moneypooladvances,net
-24(24)Taxgrantsreceivedrelatedtorenewableenergyproperties
--18 Other (2)-8Netcashusedininvestingactivities (837)(687)(703)CashFlowsFromFinancingActivities:Dividendsoncommonstock (340)(460)(400)Returnofcapitaltoparent (215)--Dividendsonpreferredstock (3)(3)(3)Short-termdebt,net 97--Moneypoolborrowings,net (105)105-Redemptions,repurchases,andmaturitiesoflong-termdebt (109)(249)(427)Issuancesoflong-termdebt 350-482Capitalissuancecosts (3)-(7)Capitalcontributionfromparent 215 41Netcashusedinfinancingactivities (113)(603)(354)Netchangeincashandcashequivalents
-(147)(53)Cashandcashequivalentsatbeginningofyear 1148201Cashandcashequivalentsatendofyear
$1$1$148Noncashfinancingactivity-capitalcontributionfromparent$9$-$-CashPaid(Refunded)DuringtheYear:Interest(netof$16,$16,and$15capitalized,respectively)$203$212$220Incometaxes,net 21586(3)TheaccompanyingnotesastheyrelatetoAmerenMissouriareanintegralpartofthesefinancialstatements.
76 UNIONELECTRICCOMPANY(d/b/aAMERENMISSOURI)STATEMENTOFSTOCKHOLDERS'EQUITY(Inmillions)December31, 2014 2013 2012CommonStock$511$511$511OtherPaid-inCapital:Beginningofyear 1,5601,5561,555Capitalcontributionfromparent(Note1) 224 41Returnofcapitaltoparent(Note1)
(215)--Otherpaid-incapital,endofyear 1,5691,5601,556PreferredStock 808080RetainedEarnings:Beginningofyear 1,8421,9071,891Netincome 393398419Commonstockdividends (340)(460)(400)Preferredstockdividends (3)(3)(3)Retainedearnings,endofyear 1,8921,8421,907TotalStockholders'Equity$4,052$3,993$4,054TheaccompanyingnotesastheyrelatetoAmerenMissouriareanintegralpartofthesefinancialstatements.
77 AMERENILLINOISCOMPANY(d/b/aAMERENILLINOIS)STATEMENTOFINCOMEANDCOMPREHENSIVEINCOME(Inmillions)YearEndedDecember31, 2014 2013 2012OperatingRevenues:
Electric$1,522$1,461$1,739 Gas 976847786 Other-3-Totaloperatingrevenues 2,4982,3112,525OperatingExpenses:Purchasedpower 343380705Gaspurchasedforresale 533448408Otheroperationsandmaintenance 771693684Depreciationandamortization 263243221Taxesotherthanincometaxes 138132130Totaloperatingexpenses 2,0481,8962,148OperatingIncome 450415377OtherIncomeandExpenses:Miscellaneousincome 17107Miscellaneousexpense 8917Totalotherincome(expense) 91(10)InterestCharges112143129IncomeBeforeIncomeTaxes 347273238IncomeTaxes14311094NetIncome 204163144OtherComprehensiveLoss,NetofTaxes:Pensionandotherpostretirementbenefitplanactivity,netofincometaxbenefitof$(2),$(2)and$(2),respectively (3)(3)(3)ComprehensiveIncome$201$160$141NetIncome$204$163$144PreferredStockDividends3 33NetIncomeAvailabletoCommonStockholder$201$160$141TheaccompanyingnotesastheyrelatetoAmerenIllinoisareanintegralpartofthesefinancialstatements.
78 AMERENILLINOISCOMPANY(d/b/aAMERENILLINOIS)BALANCESHEET(Inmillions)December31, 2014 2013 ASSETSCurrentAssets:Cashandcashequivalents
$1$1Accountsreceivable-trade(lessallowancefordoubtfulaccountsof$13and$13,respectively) 212 201Accountsreceivable-affiliates 22-Unbilledrevenue 119 135Miscellaneousaccountsreceivable 9 13Materialsandsupplies 177 174Currentregulatoryassets 129 38Currentaccumulateddeferredincometaxes,net 160 45Othercurrentassets 15 26Totalcurrentassets 844 633PropertyandPlant,Net 6,165 5,589InvestmentsandOtherAssets:
Goodwill 411 411Regulatoryassets 883 701Otherassets 78 120Totalinvestmentsandotherassets 1,372 1,232TOTALASSETS$8,381$7,454LIABILITIESANDSTOCKHOLDERS'EQUITYCurrentLiabilities:Short-termdebt$32$-Borrowingsfrommoneypool 15 56Accountsandwagespayable 207 243Accountspayable-affiliates 50 18Taxesaccrued 17 23Customerdeposits 77 79Mark-to-marketderivativeliabilities 42 36Currentenvironmentalremediation 52 43Currentregulatoryliabilities 84 159Othercurrentliabilities 124 114Totalcurrentliabilities 700 771Long-termDebt,Net 2,241 1,856DeferredCreditsandOtherLiabilities:Accumulateddeferredincometaxes,net 1,408 1,116Accumulateddeferredinvestmenttaxcredits 3 4Regulatoryliabilities 703 664Pensionandotherpostretirementbenefits 277 197Environmentalremediation 199 232Otherdeferredcreditsandliabilities 189 166Totaldeferredcreditsandotherliabilities 2,779 2,379CommitmentsandContingencies(Notes2,14and15)Stockholders'Equity:Commonstock,noparvalue,45.0sharesauthorized-25.5sharesoutstanding
--Otherpaid-incapital 1,980 1,965Preferredstock 62 62Retainedearnings 611 410Accumulatedothercomprehensiveincome 8 11Totalstockholders'equity 2,661 2,448TOTALLIABILITIESANDSTOCKHOLDERS'EQUITY$8,381$7,454TheaccompanyingnotesastheyrelatetoAmerenIllinoisareanintegralpartofthesefinancialstatements.
79 AMERENILLINOISCOMPANY(d/b/aAMERENILLINOIS)STATEMENTOFCASHFLOWS(Inmillions)YearEndedDecember31, 2014 2013 2012CashFlowsFromOperatingActivities:Netincome$204$163$144Adjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivities:Depreciationandamortization 259238214Amortizationofdebtissuancecostsandpremium/discounts 131511Deferredincometaxesandinvestmenttaxcredits,net 196104104 Other (19)4(11)Changesinassetsandliabilities:
Receivables (13)5023Materialsandsupplies (4)1520Accountsandwagespayable 719(21)Taxesaccrued (7)283Regulatoryassetsandliabilities (215)(35)64Assets,other 15519Liabilities,other 11011Pensionandotherpostretirementbenefits (6)(8)(26)Counterpartycollateral,net 144340Premiumspaidonlong-termdebtrepurchases
--(76)Netcashprovidedbyoperatingactivities 445651519CashFlowsFromInvestingActivities:Capitalexpenditures (835)(701)(442)
Other 7 65Netcashusedininvestingactivities (828)(695)(437)CashFlowsFromFinancingActivities:Dividendsoncommonstock
-(110)(189)Dividendsonpreferredstock (3)(3)(3)Short-termdebt,net 32--Moneypoolborrowings,net (41)3224Redemptions,repurchases,andmaturitiesoflong-termdebt (163)(150)(333)Issuancesoflong-termdebt 548278400Capitalissuancecosts (6)(2)(6)Capitalcontributionfromparent 15--Other 1-4Netcashprovidedby(usedin)financingactivities 38345(103)Netchangeincashandcashequivalents
-1(21)Cashandcashequivalentsatbeginningofyear 1-21Cashandcashequivalentsatendofyear
$1$1$-CashPaid(Refunded)DuringtheYear:Interest(netof$2,$4,and$2capitalized,respectively)$110$112$125Incometaxes,net (44)(23)(22)TheaccompanyingnotesastheyrelatetoAmerenIllinoisareanintegralpartofthesefinancialstatements.
80 AMERENILLINOISCOMPANY(d/b/aAMERENILLINOIS)STATEMENTOFSTOCKHOLDERS'EQUITY(Inmillions)December31, 2014 2013 2012CommonStock$-$-$-OtherPaid-inCapitalBeginningofyear 1,9651,9651,965Capitalcontributionfromparent(Note1) 15--Otherpaid-incapital,endofyear 1,9801,9651,965PreferredStock 626262RetainedEarnings:Beginningofyear 410360408Netincome 204163144Commonstockdividends
-(110)(189)Preferredstockdividends (3)(3)(3)Retainedearnings,endofyear 611410360AccumulatedOtherComprehensiveIncome:Deferredretirementbenefitcosts,beginningofyear 111417Changeindeferredretirementbenefitcosts (3)(3)(3)Deferredretirementbenefitcosts,endofyear 81114Totalaccumulatedothercomprehensiveincome,endofyear 81114TotalStockholders'Equity$2,661$2,448$2,401TheaccompanyingnotesastheyrelatetoAmerenIllinoisareanintegralpartofthesefinancialstatements.
81 AMERENCORPORATION(Consolidated)UNIONELECTRICCOMPANY(d/b/aAmerenMissouri)
AMERENILLINOISCOMPANY(d/b/aAmerenIllinois)COMBINEDNOTESTOFINANCIALSTATEMENTSDecember31,2014NOTE1-
SUMMARY
OFSIGNIFICANTACCOUNTING POLICIES GeneralAmeren,headquarteredinSt.Louis,Missouri,isapublicutilityholdingcompanyunderPUHCA2005,administeredbytheFERC.Ameren'sprimaryassetsareits equityinterestsinitssubsidiaries,includingAmeren MissouriandAmerenIllinois.Ameren'ssubsidiariesare separate,independentlegalentitieswithseparate businesses,assets,andliabilities.DividendsonAmeren's commonstockandthepaymentofotherexpensesby Amerendependondistributionsmadetoitbyits subsidiaries.Ameren'sprincipalsubsidiariesarelisted
below.UnionElectricCompany,doingbusinessasAmerenMissouri,operatesarate-regulatedelectricgeneration, transmission,anddistributionbusinessandarate-regulatednaturalgastransmissionanddistribution businessinMissouri.AmerenMissouriwas incorporatedinMissouriin1922andissuccessortoa numberofcompanies,theoldestofwhichwas organizedin1881.Itisthelargestelectricutilityinthe stateofMissouri.Itsupplieselectricandnaturalgas servicetoa24,000-square-mileareaincentraland easternMissouri.Thisareahasanestimated populationof2.8millionandincludestheGreaterSt.
Louisarea.AmerenMissourisupplieselectricserviceto 1.2millioncustomersandnaturalgasserviceto 127,000customers.
AmerenIllinoisCompany,doingbusinessasAmeren Illinois,operatesrate-regulatedelectricandnaturalgas transmissionanddistributionbusinessesinIllinois.
AmerenIllinoiswascreatedbythemergerofCILCO andIPwithandintoCIPSin2010.CIPSwas incorporatedinIllinoisin1923andwasthesuccessor toanumberofcompanies,theoldestofwhichwas organizedin1902.AmerenIllinoissupplieselectricand naturalgasutilityservicetoportionsofcentraland southernIllinoishavinganestimatedpopulationof 3.1millioninanareaof40,000squaremiles.Ameren Illinoissupplieselectricserviceto1.2million customersandnaturalgasserviceto813,000
customers.Amerenhasvariousothersubsidiariesresponsibleforactivitiessuchastheprovisionofsharedservices.Ameren alsohasasubsidiary,ATXI,thatoperatesaFERCrate-regulatedelectrictransmissionbusiness.ATXIisdeveloping MISO-approvedelectrictransmissionprojects,includingthe IllinoisRivers,SpoonRiver,andMarkTwainprojects.
AmerenisalsopursuingreliabilityprojectswithinAmeren Missouri'sandAmerenIllinois'serviceterritoriesaswellascompetitiveelectrictransmissioninvestmentopportunities outsideoftheseterritories,includinginvestmentsoutsideof
MISO.InDecember2013,AmerencompletedthedivestitureofNewAERtoIPH.InJanuary2014,MedinaValley completeditssaleoftheElgin,GibsonCity,andGrand Towergas-firedenergycenterstoRocklandCapital.In addition,in2013,AmerenabandonedtheMeredosiaand Hutsonvilleenergycentersuponthecompletionofthe divestitureofNewAERtoIPH.Amerenhasbegunto demolishtheHutsonvilleenergycenterandexpectsto demolishtheMeredosiaenergycenterthereafter.Asa resultoftheseevents,AmerensegregatedNewAER'sand theElgin,GibsonCity,GrandTower,Meredosia,and Hutsonvilleenergycenters'operatingresults,assets,and liabilitiesandpresentedthemseparatelyasdiscontinued operationsforallperiodspresentedinthisreport.Unless otherwisestated,thesenotestothefinancialstatements excludediscontinuedoperationsforallperiodspresented.
SeeNote16-DivestitureTransactionsandDiscontinued Operationsforadditionalinformationregardingthese
transactions.ThefinancialstatementsofAmerenarepreparedonaconsolidatedbasis,andthereforeincludetheaccountsofits majority-ownedsubsidiaries.AmerenMissouriandAmeren Illinoishavenosubsidiariesandthereforetheirfinancial statementsarenotpreparedonaconsolidatedbasis.All intercompanytransactionshavebeeneliminated.Alltabular dollaramountsareinmillions,unlessotherwiseindicated.OuraccountingpoliciesconformtoGAAP.Ourfinancialstatementsreflectalladjustments(whichinclude normal,recurringadjustments)thatarenecessary,inour opinion,forafairpresentationofourresults.The preparationoffinancialstatementsinconformitywithGAAP requiresmanagementtomakecertainestimatesand assumptions.Suchestimatesandassumptionsaffect reportedamountsofassetsandliabilities,thedisclosureof contingentassetsandliabilitiesatthedatesoffinancial statements,andthereportedamountsofrevenuesand expensesduringthereportedperiods.Actualresultscould differfromthoseestimates.
RegulationWeareregulatedbytheMoPSC,theICC,andtheFERC.Wedefercertaincostsasassetspursuanttoactionsofrateregulatorsorbecauseofexpectationsthatwewillbe abletorecoversuchcostsinrateschargedtocustomers.
Wealsodefercertainamountsasliabilitiespursuantto actionsofrateregulatorsorbasedontheexpectationthat suchamountswillbereturnedtocustomersinfuturerates.
Regulatoryassetsandliabilitiesareamortizedconsistent withtheperiodofexpectedregulatorytreatment.Inaddition tothecostrecoverymechanismsdiscussedinthe PurchasedGas,Power,andFuelRate-adjustment Mechanismssectionbelow,AmerenMissouriandAmeren Illinoishaveapprovalsfromregulatorstouseothercost recoverymechanisms.AmerenMissourihasavegetation 82 managementandinfrastructureinspectioncosttracker,apensionandpostretirementbenefitcosttracker,an uncertaintaxpositionstracker,arenewableenergy standardscosttracker,asolarrebateprogramtracker,a stormrestorationcosttracker,andtheMEEIAenergy efficiencyrider.AmerenIllinois'andATXI'selectric transmissionratesaresubjecttoformularatemaking.
Additionally,AmerenIllinois'electricdistributionbusiness participatesintheperformance-basedformularatemaking processestablishedpursuanttotheIEIMA.AmerenIllinois alsohasanenvironmentalcostrider,anasbestos-related litigationrider,anenergyefficiencyrider,andabaddebt rider.SeeNote2-RateandRegulatoryMattersfor additionalinformationonregulatoryassetsandliabilities.CashandCashEquivalentsCashandcashequivalentsincludecashonhandandtemporaryinvestmentspurchasedwithanoriginalmaturityofthreemonthsorless.AllowanceforDoubtfulAccountsReceivableTheallowancefordoubtfulaccountsrepresentsourestimateofexistingaccountsreceivablethatwillultimately beuncollectible.Theallowanceiscalculatedbyapplying estimatedlossfactorstovariousclassesofoutstanding receivables,includingunbilledrevenue.Thelossfactors usedtoestimateuncollectibleaccountsarebasedupon bothhistoricalcollectionsexperienceandmanagement's estimateoffuturecollectionssuccessgiventheexistingand anticipatedfuturecollectionsenvironment.AmerenIllinois hasaratemechanismthatadjustsratesfornetwrite-offsof customeraccountsreceivableaboveorbelowthosebeing collectedinrates.MaterialsandSuppliesMaterialsandsuppliesarerecordedatthelowerofcostormarket.Costisdeterminedbytheaverage-costmethod.Materialsandsuppliesarecapitalizedasinventorywhenpurchasedandthenexpensedorcapitalizedasplantassetswheninstalled,asappropriate.ThefollowingtablepresentsabreakdownofmaterialsandsuppliesforeachoftheAmeren CompaniesatDecember31,2014and2013:AmerenMissouriAmerenIllinoisAmeren 2014 Fuel (a)......................................................................$134$-$134Gasstoredunderground
........................................................16111127Othermaterialsandsupplies
....................................................19766263$347$177$524 2013 Fuel (a)......................................................................$144$-$144Gasstoredunderground
........................................................17110127Othermaterialsandsupplies....................................................19164255$352$174$526(a)Consistsofcoal,oil,andpropane.PropertyandPlant,NetWecapitalizethecostofadditionstoandbettermentsofunitsofpropertyandplant.Thecostincludeslabor,material,applicabletaxes,andoverhead.Anallowancefor fundsusedduringconstruction,asdiscussedbelow,isalso capitalizedasacostofourrate-regulatedassets.
Maintenanceexpenditures,includingnuclearrefuelingand maintenanceoutages,areexpensedasincurred.Whenunits ofdepreciablepropertyareretired,theoriginalcosts,less salvagevalues,arechargedtoaccumulateddepreciation.If environmentalexpendituresarerelatedtoassetscurrently inuse,asinthecaseoftheinstallationofpollutioncontrol equipment,thecostiscapitalizedanddepreciatedoverthe expectedlifeoftheasset.SeeAssetRetirementObligations belowandNote3-PropertyandPlant,Net,foradditional
information.
DepreciationDepreciationisprovidedovertheestimatedlivesofthevariousclassesofdepreciablepropertybyapplying compositeratesonastraight-linebasistothecostbasisof suchproperty.Theprovisionfordepreciationforthe AmerenCompaniesin2014,2013,and2012rangedfrom 3%to4%oftheaveragedepreciablecost.AllowanceforFundsUsedDuringConstructionWecapitalizeallowanceforfundsusedduringconstruction,orthecostofborrowedfundsandthecostofequityfunds(preferredandcommonstockholders'equity) applicabletorate-regulatedconstructionexpenditures,in accordancewiththeutilityindustry'saccountingpractice.
Allowanceforfundsusedduringconstructiondoesnot representacurrentsourceofcashfunds.Thisaccounting practiceoffsetstheeffectonearningsofthecostof 83 financingduringconstruction,andittreatssuchfinancingcostsinthesamemannerasconstructionchargesforlabor andmaterials.Underacceptedratemakingpractice,cashrecoveryofallowanceforfundsusedduringconstructionandother constructioncostsoccurswhencompletedprojectsare placedinserviceandreflectedincustomerrates.The followingtablepresentstheannualallowanceforfunds usedduringconstructionratesthatwereusedduring2014, 2013,and2012:201420132012AmerenMissouri
................
7%8%8%AmerenIllinois
..................
2%8%9%GoodwillGoodwillrepresentstheexcessofthepurchasepriceofanacquisitionoverthefairvalueofthenetassets acquired.AmerenandAmerenIllinoishadgoodwillof
$411millionatDecember31,2014,and2013.AllofAmeren'sandAmerenIllinois'goodwillatDecember31,2014and2013,wasassignedtotheAmeren Illinoisreportingunit,whichisalsotheAmerenIllinois reportablesegment.WeevaluategoodwillforimpairmentasofOctober31ofeachyear,ormorefrequentlyifeventsand circumstancesindicatethattheassetmightbeimpaired.
AmerenandAmerenIllinoisappliedaqualitativegoodwill evaluationmodelfortheirannualgoodwillimpairmenttest conductedasofOctober31,2014.Basedontheresultsof Ameren'sandAmerenIllinois'qualitativeassessment, AmerenandAmerenIllinoisbelieveitwasmorelikelythan notthatthefairvalueoftheAmerenIllinoisreportingunit exceededitscarryingvalueasofOctober31,2014, indicatingnoimpairmentofAmeren'sorAmerenIllinois' goodwill.Thefollowingfactors,amongothers,were consideredbyAmerenandAmerenIllinoiswhenassessing whetheritwasmorelikelythannotthatthefairvalueofthe AmerenIllinoisreportingunitexceededitscarryingvalue fortheOctober31,2014,test:
macroeconomicconditions,includingthoseconditionswithinAmerenIllinois'serviceterritory; pendingratecaseoutcomesandprojectionsoffuture ratecaseoutcomes; changesinlawsandpotentiallawchanges; observableindustrymarketmultiples; achievementofIEIMAperformancemetricsandthe yieldof30-yearUnitedStatesTreasurybonds; apotentialreductionintheFERC-allowedreturnon equityrelatedtotransmissionservices;and actualandforecastedfinancialperformance.ThegoodwillassignedtotheAmerenIllinoisreportingunitontheDecember31,2014balancesheetsofAmeren andAmerenIllinoishadnoaccumulatedgoodwill impairmentlosses.AmerenandAmerenIllinoiswill continuetomonitortheactualandforecastedoperatingresults,cashflows,marketcapitalization,andobservable industrymarketmultiplesoftheAmerenIllinoisreporting unitforsignsofpossibledeclinesinestimatedfairvalue andpotentialgoodwillimpairment.ImpairmentofLong-livedAssetsWeevaluatelong-livedassetsclassifiedasheldandusedforimpairmentwheneventsorchangesincircumstancesindicatethatthecarryingvalueofsuch assetsmaynotberecoverable.Whetheranimpairmenthas occurredisdeterminedbycomparingtheestimated undiscountedcashflowsattributabletotheassetstothe carryingvalueoftheassets.Ifthecarryingvalueexceeds theundiscountedcashflows,werecognizeanimpairment chargeequaltotheamountbywhichthecarryingvalue exceedstheestimatedfairvalueoftheassets.Intheperiod inwhichwedetermineanassetmeetsheldforsalecriteria, werecordanimpairmentchargetotheextentthebook valueexceedsitsestimatedfairvaluelesscosttosell.
InvestmentsAmerenandAmerenMissourirecordinvestmentsheldinAmerenMissouri'snucleardecommissioningtrustfundatfairvalue.Lossesonassetsinthetrustfundcouldresult inhigherfundingrequirementsfordecommissioningcosts, whichAmerenMissouribelieveswouldberecoveredin electricratespaidbyitscustomers.Accordingly,Ameren andAmerenMissourirecognizearegulatoryassetontheir balancesheetsforlossesoninvestmentsheldinthenuclear decommissioningtrustfund.Inaddition,Amerenand AmerenMissourirecognizearegulatoryliabilityontheir balancesheetsforgainsoninvestmentsheldinthenuclear decommissioningtrustfund.AsofDecember31,2014,the nucleardecommissioningtrustfundhadcumulativegains.
SeeNote9-NuclearDecommissioningTrustFund Investmentsforadditionalinformation.EnvironmentalCostsLiabilitiesforenvironmentalcostsarerecordedonanundiscountedbasiswhenitisprobablethataliabilityhasbeenincurredandtheamountoftheliabilitycanbe reasonablyestimated.Costsareexpensedordeferredasa regulatoryassetwhenitisexpectedthatthecostswillbe recoveredfromcustomersinfuturerates.AssetRetirementObligationsWearerequiredtorecordtheestimatedfairvalueoflegalobligationsassociatedwiththeretirementoftangiblelong-livedassetsintheperiodinwhichtheliabilitiesare incurredandtocapitalizeacorrespondingamountaspart ofthebookvalueoftherelatedlong-livedasset.In subsequentperiods,wearerequiredtomakeadjustments toAROsbasedonchangesintheestimatedfairvaluesof theobligations.Correspondingincreasesinassetbook valuesaredepreciatedovertheremainingusefullifeofthe relatedasset.Uncertaintiesastotheprobability,timing,or amountofcashexpendituresassociatedwithAROsaffect 84 ourestimatesoffairvalue.AmerenandAmerenMissourihaverecordedAROsforretirementcostsassociatedwith AmerenMissouri'sCallawayenergycenter decommissioningcosts,asbestosremoval,CCRfacilities, andriverstructures.Also,AmerenandAmerenIllinoishave recordedAROsforretirementcostsassociatedwith asbestosremoval.Inaddition,Ameren,AmerenMissouri, andAmerenIllinoishaverecordedAROsforthedisposalof certaintransformers.AmerenandAmerenMissouriare evaluatingthepotentialeffectoftheEPA'snewrule regardingthemanagementanddisposalofCCRontheir AROsassociatedwithashponds.SeeNote15-CommitmentsandContingencies.Assetremovalcostsaccruedbyourrate-regulatedoperationsthatdonotconstitutelegalobligationsare classifiedasregulatoryliabilities.SeeNote2-Rateand RegulatoryMatters.ThefollowingtableprovidesareconciliationofthebeginningandendingcarryingamountofAROsforthe yearsendedDecember31,2014and2013:
Ameren Missouri AmerenIllinoisAmerenBalanceatDecember31,2012....$346$3$349Liabilitiessettled.............(1)(a)(1)Accretionin2013 (b)...........19(a)19Changeinestimates (c).........2(a)2BalanceatDecember31,2013....$366$3 (d)$369Liabilitiesincurred
............2-2Liabilitiessettled
.............(2)(a)(2)Accretionin2014 (b)...........21(a)21Changeinestimates (c)(e)........246BalanceatDecember31,2014
....$389$7 (d)$396(a)Lessthan$1million.(b)AccretionexpensewasrecordedasanincreasetoregulatoryassetsatAmerenMissouriandAmerenIllinois.(c)AmerenMissourichangeditsfairvalueestimatesforasbestosremovalin2013and2014andforcertainCCRfacilitiesin2013.(d)Includedin"Otherdeferredcreditsandliabilities"onthebalance sheet.(e)AmerenIllinoischangeditsfairvalueestimateforasbestosremovalin2014.AmerenandAmerenMissourihavenucleardecommissioningtrustfundassetsof$549millionand$494millionasofDecember31,2014and2013, respectively,whicharefordecommissioningofthe Callawayenergycenter.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsforadditionalinformationonthe AROsrelatedtotheabandonedMeredosiaandHutsonville energycenters,whicharepresentedasdiscontinued operationsandthereforenotincludedinthetableabove.NoncontrollingInterestsAsofDecember31,2014and2013,Ameren'snoncontrollinginterestsincludedthepreferredstockofAmerenMissouriandAmerenIllinois.OperatingRevenueTheAmerenCompaniesrecordoperatingrevenueforelectricornaturalgasservicewhenitisdeliveredto customers.Weaccrueanestimateofelectricandnatural gasrevenuesforservicerenderedbutunbilledattheendof eachaccountingperiod.AmerenIllinoisparticipatesintheperformance-basedformularatemakingframeworkpursuanttotheIEIMA.The IEIMAprovidesforanannualreconciliationofAmeren Illinois'electricdeliveryservicerevenuerequirement.Asof eachbalancesheetdate,AmerenIllinoisrecordsits estimateoftheelectricdeliveryservicerevenueeffect resultingfromthereconciliationoftherevenuerequirement necessarytoreflecttheactualrecoverablecostsincurred forthatyearwiththerevenuerequirementthatwas reflectedincustomerratesforthatyear.Ifthecurrent year'srevenuerequirementisgreaterthantherevenue requirementreflectedinthatyear'scustomerrates,an increasetoelectricoperatingrevenueswithanoffsettoa regulatoryassetisrecordedtoreflecttheexpectedrecovery ofthoseadditionalcostsfromcustomerswithinthenext twoyears.Ifthecurrentyear'srevenuerequirementisless thantherevenuerequirementreflectedinthatyear's customerrates,areductiontoelectricoperatingrevenues withanoffsettoaregulatoryliabilityisrecordedtoreflect theexpectedrefundtocustomerswithinthenexttwoyears.
SeeNote2-RateandRegulatoryMattersforinformation regardingAmerenIllinois'revenuerequirement reconciliationpursuanttotheIEIMA.SimilartotheIEIMAprocessdescribedabove,AmerenIllinoisandATXIrecordtheimpactofarevenue requirementreconciliationforeachcompany'selectric transmissionjurisdiction,pursuanttoFERC-approvedrate
treatment.AccountingforMISOTransactionsMISO-relatedpurchaseandsaletransactionsarerecordedbyAmeren,AmerenMissouri,andAmerenIllinoisusingsettlementinformationprovidedbyMISO.Ameren Missourirecordsthesepurchaseandsaletransactionsona nethourlyposition.AmerenMissourirecordsnetpurchases inasinglehourin"OperatingExpenses-Purchased power"andnetsalesinasinglehourin"Operating Revenues-Electric"initsstatementofincome.Ameren Illinoisrecordsnetpurchasesin"OperatingExpenses-Purchasedpower"initsstatementofincometoreflectallof itsMISOtransactionsrelatingtotheprocurementofpower foritscustomers.Onoccasion,AmerenMissouri'sand AmerenIllinois'prior-periodtransactionswillberesettled outsidetheroutinesettlementprocessbecauseofachange inMISO'starifforamaterialinterpretationthereof.Inthese cases,AmerenMissouriandAmerenIllinoisrecognize expensesassociatedwithresettlementsoncethe resettlementisprobableandtheresettlementamountcan beestimatedandrecognizerevenuesoncetheresettlement amountisreceived.
85 NuclearFuelAmerenMissouri'scostofnuclearfueliscapitalizedandthenamortizedtofuelexpenseonaunit-of-productionbasis.Thecostischargedto"OperatingExpenses-Fuel"in thestatementofincome.PurchasedGas,PowerandFuelRate-adjustment MechanismsAmerenMissouriandAmerenIllinoishavevariousrate-adjustmentmechanismsinplacethatprovideforthe recoveryofpurchasednaturalgasandelectricfueland purchasedpowercostswithoutatraditionalratecase proceeding.SeeNote2-RateandRegulatoryMattersfor theregulatoryassetsandliabilitiesrecordedat December31,2014and2013,relatedtotherate-adjustmentmechanismsdiscussedbelow.InAmerenMissouri'sandAmerenIllinois'naturalgasutilityjurisdictions,changesinnaturalgascostsare reflectedinbillingstotheirnaturalgasutilitycustomers throughPGAclauses.Thedifferencebetweenactualnatural gascostsandcostsbilledtocustomersinagivenperiodis deferredasaregulatoryassetorliability.Thedeferred amountiseitherbilledorrefundedtonaturalgasutility customersinasubsequentperiod.InAmerenIllinois'retailelectricutilityjurisdiction,changesinpurchasedpowerandtransmissionservice costsarereflectedinbillingstoitselectricutilitycustomers throughpass-throughrate-adjustmentclauses.The differencebetweenactualpurchasedpowerand transmissionservicecostsandcostsbilledtocustomersin agivenperiodisdeferredasaregulatoryassetorliability.
Thedeferredamountiseitherbilledorrefundedtoelectric utilitycustomersinasubsequentperiod.AmerenMissourihasaFACthatallowsanadjustmentofelectricratesthreetimesperyearforapass-throughto customersof95%ofchangesinfuelandpurchasedpower costs,includingtransportationchargesandrevenues,netof off-systemsales,greaterorlessthantheamountsetin baserates,subjecttoMoPSCprudencereview.The differencebetweentheactualamountsincurredforthese itemsandtheamountsrecoveredfromAmerenMissouri customers'baseratesisdeferredasaregulatoryassetor liability.Thedeferredamountsareeitherbilledorrefunded toelectricutilitycustomersinasubsequentperiod.Stock-basedCompensationStock-basedcompensationcostismeasuredatthegrantdatebasedonthefairvalueoftheaward,netofanassumedforfeiturerate.Amerenrecognizesas compensationexpensetheestimatedfairvalueofstock-basedcompensationonastraight-linebasisoverthe requisiteserviceperiod.SeeNote12-Stock-based Compensationforadditionalinformation.ExciseTaxesAmerenMissouriandAmerenIllinoiscollectcertainexcisetaxesfromcustomersthatareleviedonthesaleordistributionofnaturalgasandelectricity.ExcisetaxesareleviedonAmerenMissouri'selectricandnaturalgas businessesandonAmerenIllinois'naturalgasbusiness andarerecordedgrossin"OperatingRevenues-Electric,"
"OperatingRevenues-Gas,"and"OperatingExpenses-Taxesotherthanincometaxes"onthestatementofincome orthestatementofincomeandcomprehensiveincome.
ExcisetaxesforelectricserviceinIllinoisareleviedonthe customerandarethereforenotincludedinAmerenIllinois' revenuesandexpenses.Theyareinsteadincludedin"Taxes accrued"onthebalancesheet.Thefollowingtablepresents excisetaxesrecordedin"OperatingRevenues-Electric,"
"OperatingRevenues-Gas,"and"OperatingExpenses-Taxesotherthanincometaxes"fortheyearsended December31,2014,2013,and2012:201420132012AmerenMissouri
..........$151$152$139AmerenIllinois
............
646154 Ameren.................$215$213$193UnamortizedDebtDiscounts,Premiums,andIssuance
CostsLong-termdebtdiscounts,premiums,andissuancecostsareamortizedoverthelivesoftherelatedissuances.
Creditfacilityfeesareamortizedoverthecreditfacilityterm.IncomeTaxesAmerenusesanassetandliabilityapproachforitsfinancialaccountingandreportingofincometaxes,inaccordancewithauthoritativeaccountingguidance.
Deferredtaxassetsandliabilitiesarerecognizedfor transactionsthataretreateddifferentlyforfinancial reportingandincometaxreturnpurposes.Thesedeferred taxassetsandliabilitiesarebasedonstatutorytaxrates.Werecognizethatregulatorswillprobablyreducefuturerevenuesfordeferredtaxliabilitiesthatwereinitially recordedatratesinexcessofthecurrentstatutoryrate.
Therefore,reductionsindeferredtaxliabilitiesthatwere recordedbecauseofdecreasesinthestatutoryratehave beencreditedtoaregulatoryliability.Aregulatoryassethas beenestablishedtorecognizetheprobablerecovery throughfuturecustomerratesoftaxbenefitsrelatedtothe equitycomponentofallowanceforfundsusedduring construction,aswellastheeffectsoftaxratechanges.Investmenttaxcreditsusedontaxreturnsforprioryearshavebeendeferredasanon-currentliability.The creditsarebeingamortizedovertheusefullivesofthe relatedinvestment.Deferredincometaxeswererecorded onthetemporarydifferencerepresentedbythedeferred investmenttaxcreditsandacorrespondingregulatory liability.Thisrecognizestheexpectedreductioninratesfor futurelowerincometaxesassociatedwiththeamortization oftheinvestmenttaxcredits.SeeNote13-IncomeTaxes.AmerenMissouri,AmerenIllinois,andalltheotherAmerensubsidiarycompaniesarepartiestoataxallocation agreementwithAmeren(parent)thatprovidesforthe 86 allocationofconsolidatedtaxliabilities.Thetaxallocationagreementspecifiesthateachpartybeallocatedanamount oftaxsimilartothatwhichwouldbeowedorrefundedhad thepartybeenseparatelysubjecttotax.Anynetbenefitattributabletotheparentisreallocatedtotheotherparties.
Thisreallocationistreatedasacapitalcontributiontothe partyreceivingthebenefit.EarningsperShareBasicearningspershareiscomputedbydividingnetincomeattributabletoAmerenCorporationcommonstockholdersbytheweighted-averagenumberofcommonsharesoutstandingduringtheperiod.Dilutedearningspershareiscomputedby dividingnetincomeattributabletocommonstockholdersbythedilutedweighted-averagenumberofcommonshares outstandingduringtheperiod.Dilutedearningspersharereflectsthepotentialdilutionthatwouldoccurifcertainstock-based performanceshareunitsweresettled.ThefollowingtablepresentsAmeren'sbasicanddilutedearningspersharecalculationsandreconcilestheweighted-averagenumberofcommonsharesoutstandingtothedilutedweighted-averagenumberofcommonsharesoutstandingfor theyearsendedDecember31,2014,2013,and2012:201420132012Netincome(loss)attributabletoAmerenCorporation:Continuingoperations
.................................................................$587$512$516Discontinuedoperations
................................................................
(1)(223)(1,490)Netincome(loss)attributabletoAmerenCorporation
...........................................$586$289$(974)Averagecommonsharesoutstanding-basic
.................................................
242.6242.6242.6Assumedsettlementofperformanceshareunits
...............................................
1.81.90.4Averagecommonsharesoutstanding-diluted
................................................
244.4244.5243.0Earnings(loss)percommonshare-basic:Continuingoperations
.................................................................$2.42$2.11$2.13Discontinuedoperations
................................................................
-(0.92)(6.14)Earnings(loss)percommonshare-basic
...................................................$2.42$1.19$(4.01)Earnings(loss)percommonshare-diluted:Continuingoperations
.................................................................$2.40$2.10$2.13Discontinuedoperations
................................................................
-(0.92)(6.14)Earnings(loss)percommonshare-diluted
..................................................$2.40$1.18$(4.01)TherewerenopotentiallydilutivesecuritiesexcludedfromthedilutedearningspersharecalculationsfortheyearsendedDecember31,2014,2013,and2012.CapitalContributionsandReturnofCapitalIn2014,AmerenMissouriandAmerenIllinoisreceivedcashcapitalcontributionsof$215millionand$15million,respectively,fromAmeren(parent)asaresultofthetax allocationagreement.Additionally,asofDecember31, 2014,AmerenMissouriaccrueda$9millioncapital contributionrelatedtothesameagreement.In2014, AmerenMissourireturnedcapitalof$215milliontoAmeren (parent).SupplementalCashFlowInformationThefollowingtablepresentsadditionalinformationregardingAmeren'sconsolidatedstatementofcashflows fortheyearsendedDecember31,2014,2013,and2012:201420132012Cashpaid(refunded)duringtheyear:
InterestContinuingoperations (a)..........$333$362$384Discontinuedoperations (b)........-3149$333$393$433Incometaxes,netContinuingOperations
...........$(41)$116$10DiscontinuedOperations
.........14(108)(9)$(27)$8$1(a)Netof$18million,$20million,and$17millioncapitalized, respectively.(b)Netof$-million,$17million,and$13millioncapitalized, respectively.SeeNote3-PropertyandPlant,Net,forinformationonaccruedcapitalexpenditures.
87 AccountingChangesandOtherMattersThefollowingisasummaryofrecentlyadoptedauthoritativeaccountingguidance,aswellasguidanceissuedbutnotyetadopted,thatcouldaffecttheAmeren
Companies.PresentationofanUnrecognizedTaxBenefitIn2013,FASBissuedadditionalauthoritativeaccountingguidance,whichbecameeffectivein2014,toprovideclarityforthefinancialstatementpresentationofan unrecognizedtaxbenefitwhenanetoperatingloss carryforward,asimilartaxloss,orataxcreditcarryforward exists.Theobjectiveofthisguidanceistoeliminate diversityinpracticerelatedtothepresentationofcertain unrecognizedtaxbenefits.Itrequiresentitiestopresentan unrecognizedtaxbenefitasareductiontoadeferredtax assetforanetoperatinglosscarryforward,asimilartax loss,orataxcreditcarryforward.Previously,unrecognized taxbenefitswererecordedin"Otherdeferredcreditsand liabilities"onAmeren's,AmerenMissouri's,andAmeren Illinois'respectivebalancesheets.Beginningin2014, unrecognizedtaxbenefitsarerecordedasareductiontothe deferredtaxassetsfornetoperatinglossesandtaxcredit carryforwardswithin"Accumulateddeferredincometaxes, net"onourbalancesheets.Unrecognizedtaxbenefitsthat exceedthesecarryforwardsarerecordedin"Otherdeferred creditsandliabilities"ontherespectivebalancesheets.At December31,2014,unrecognizedtaxbenefitsof
$52million,$-million,and$-millionwererecordedin "Accumulateddeferredincometaxes,net"onAmeren's, AmerenMissouri's,andAmerenIllinois'balancesheets, respectively.AtDecember31,2013,unrecognizedtax benefitsof$84million,$15million,and$-million previouslyrecordedin"Otherdeferredcreditsand liabilities"onAmeren's,AmerenMissouri's,andAmeren Illinois'respectivebalancesheetswerereclassifiedto "Accumulateddeferredincometaxes,net"forcomparative purposes.Theimplementationoftheadditionalauthoritative accountingguidancedidnotaffecttheAmerenCompanies' resultsofoperationsorliquidity,asthisguidanceis presentation-relatedonly.ReportingDiscontinuedOperationsandDisclosuresofComponentsofanEntityIn2014,FASBissuedauthoritativeaccountingguidancethatchangesthecriteriaforreportingand qualifyingfordiscontinuedoperations.Underthenew guidance,acomponentofanentity,oragroupof componentsofanentity,thateithermeetsthecriteriatobe classifiedasheldforsaleorisdisposedofbysaleor otherwiseisrequiredtobereportedindiscontinued operationsifthedisposalrepresentsastrategicshiftthat had,orwillhave,amajoreffectonanentity'soperations andfinancialresults.Theguidanceincludesexpanded disclosurerequirementsfordiscontinuedoperationsand additionaldisclosuresaboutadisposalofanindividually significantcomponentofanentitythatdoesnotqualifyfor discontinuedoperationspresentation.TheguidanceiseffectivefortheAmerenCompaniesinthefirstquarterof 2015forcomponentsthatareclassifiedasheldforsaleor disposedofonorafterJanuary1,2015.Earlyadoptionis permitted,butonlyfordisposalsorclassificationsasheld forsalethathavenotbeenreportedinfinancialstatements previouslyissued.Therefore,Ameren'sexisting discontinuedoperationsarenotsubjecttothenew disclosurerequirements.Theguidancewillnotaffectthe AmerenCompanies'resultsofoperations,financial position,orliquidity,asthisguidanceispresentation-relatedonly.RevenuefromContractswithCustomersIn2014,FASBissuedauthoritativeaccountingguidancetoclarifytheprinciplesforrecognizingrevenueandtodevelopacommonrevenuestandardforGAAP.The guidancerequiresanentitytorecognizeanamountof revenueforthetransferofpromisedgoodsorservicesto customersthatreflectstheconsiderationwhichtheentity expectstobeentitledtoinexchangeforthosegoodsor services.Theguidancealsorequiresadditionaldisclosures toenableusersoffinancialstatementstounderstandthe nature,amount,timing,anduncertaintyofrevenueand cashflowsarisingfromcontractswithcustomers.The guidancewillbeeffectivefortheAmerenCompaniesinthe firstquarterof2017.Theguidanceallowsentitiestochoose oneoftwotransitionmethods,eitherbyapplyingthe guidanceretrospectivelytoeachreportingperiodpresented orbyrecordingacumulativeeffectadjustmenttoretained earningsintheperiodofinitialadoption.TheAmeren Companiesarecurrentlyassessingtheimpactsofthis guidanceontheirresultsofoperations,financialposition, andliquidity,aswellasthetransitionmethodthattheywill usetoadopttheguidance.NOTE2-RATEANDREGULATORYMATTERSBelowisasummaryofsignificantregulatoryproceedingsandrelatedlawsuits.Weareunabletopredicttheultimateoutcomeofthesematters,thetimingofthe finaldecisionsofthevariousagenciesandcourts,orthe effectonourresultsofoperations,financialposition,or
liquidity.
Missouri2014ElectricRateCaseInJuly2014,AmerenMissourifiledarequestwiththeMoPSCseekingapprovaltoincreaseitsannualrevenuesforelectricservice.Therequest,asamendedinFebruary2015, seeksanannualrevenueincreaseofapproximately
$190million.Theamendedraterequestseeksrecoveryof increasednetenergycostsandrebatesprovidedfor customer-installedsolargeneration,aswellasrecoveryof, andareturnon,electricinfrastructureinvestments.
Approximately$100millionoftheamendedrequestrelates toanincreaseinnetenergycostsabovethelevelsincluded inbaseratesauthorizedbytheMoPSCinitsDecember 2012electricrateorder.Absentinitiationofthisgeneralrate 88 proceeding,95%ofthosecostswouldhavebeenreflectedinrateadjustmentsimplementedunderAmerenMissouri's existingFAC.Theamendedelectricrateincreaserequestis basedona10.4%returnoncommonequity,acapital structurecomposedof51.8%commonequity,anelectric ratebaseof$7billion,andatestyearendedMarch31, 2014,withcertainproformaadjustmentsthroughtrue-up datesofDecember31,2014andJanuary1,2015.AmerenMissouri'sraterequestalsoseekscontinueduseoftheFACandtheregulatorytrackingmechanismsfor stormcosts,vegetationmanagementandinfrastructure inspectioncosts,pensionandpostretirementbenefits,and uncertainincometaxpositionsthattheMoPSCauthorized inearlierelectricrateorders.InOctober2014,aspartofthisratecaseproceeding,theMoOPC,theMIEC,andotherpartiesfiledarateshift requestthatseekstoreduceNoranda'selectricrateswith anoffsettingincreaseinelectricratesforAmerenMissouri's othercustomers.AmerenMissourisupplieselectricityto Noranda'saluminumsmelterinsoutheastMissouriundera 15-yearagreement,thatissubjecttoterminationasearlyas 2020uponatleastfiveyearsnoticebyeitherparty.
TerminationoftheagreementbyAmerenMissouriwould requireMoPSCapproval.InFebruary2015,theMoPSCstaffrecommendedanincreasetoAmerenMissouri'sannualrevenuesof
$89millionbasedonareturnonequityof9.25%.In addition,theMoPSCstaffopposedthecontinueduseofthe regulatorytrackingmechanismsforstormcostsand vegetationmanagementandinfrastructureinspectioncosts.
TheMoPSCstaffalsoopposedtherecoveryof$36million infixedcostsnotpreviouslyrecoveredassociatedwiththe accountingauthorityorderdiscussedbelow.TheMoPSCproceedingsrelatingtotheproposedelectricservicerateincreaseareongoingandadecisionby theMoPSCisexpectedbyMay2015,withnewrates effectivebyJune2015.AmerenMissouricannotpredictthe levelofanyelectricserviceratechangetheMoPSCmay approveorwhetheranyrateincreasethatmayeventuallybe approvedwillbesufficientforAmerenMissouritorecover itscostsandtoearnareasonablereturnonitsinvestments whentheratechangesgointoeffect.FACPrudenceReviewandAccountingAuthorityOrderInJuly2013,theMoPSCissuedanorderwithrespecttoitsreviewofAmerenMissouri'sFACcalculationfortheperiodfromOctober1,2009,toMay31,2011.Inthis order,theMoPSCruledthatAmerenMissourishouldhave includedintheFACcalculationallrevenuesandcosts associatedwithcertainlong-termpartialrequirementssales thatweremadebyAmerenMissouribecauseofthelossof Noranda'sloadcausedbyasevereicestormin2009.Asa resultoftheorder,in2013AmerenMissourirecordeda pretaxchargetoearningsof$26million,including
$1millionforinterest,foritsestimatedobligationtorefund toitselectriccustomerstheearningsassociatedwiththese salespreviouslyrecognizedfortheperiodfromOctober1,2009,toMay31,2011.AmerenMissourirecordedthe chargeto"OperatingRevenues-Electric"andtherelated interestto"InterestCharges"withacorrespondingoffsetto "Currentregulatoryliabilities."Nosimilarrevenueswere excludedfromFACcalculationsafterMay2011.Separately,inJuly2011,AmerenMissourifiledarequestwiththeMoPSCforanaccountingauthorityorder thatwouldallowAmerenMissouritodeferfixedcosts totaling$36millionduringthetimeperiodofMarch1, 2009,toMay31,2011,notpreviouslyrecoveredfrom Norandaasaresultofthelossofloadcausedbythesevere 2009icestorm,forpotentialrecoveryinafutureelectric ratecase.InNovember2013,theMoPSCissuedan accountingauthorityorderthatallowedAmerenMissourito seekrecoveryofthesefixedcostsinanelectricratecase.
AmerenMissouri'sJuly2014electricratecasefiling requestedrecoveryofthesefixedcostsoverfiveyears.The MIECandtheMoOPCfiledappealsoftheMoPSC's November2013accountingauthorityorderwiththe MissouriCourtofAppeals,WesternDistrict.InJanuary 2015,theMissouriCourtofAppeals,WesternDistrict upheldtheMoPSC'sorder.AmerenMissourihasnot recordedanypotentialrevenueassociatedwiththis accountingauthorityorder.MEEIAFilingInDecember2014,AmerenMissourifiledanenergyefficiencyplanwiththeMoPSCundertheMEEIA.Thisfilingproposedathree-yearplanthatincludesaportfolioof customerenergyefficiencyprogramsalongwithacost recoverymechanism.Iftheplanisapproved,beginningin January2016,AmerenMissouriintendstoinvest
$135millionoverthreeyearsintheproposedcustomer energyefficiencyprograms.AmerenMissourirequested continueduseofaMEEIAriderthatallowsittocollectfrom orrefundtocustomersanydifferenceintheactualamounts incurredandtheamountscollectedfromcustomersforthe MEEIAprogramcostsanditslostrevenues.Inaddition, AmerenMissourirequestedincentivestoearnadditional revenuesbyachievingcertainenergyefficiencygoals, including$25millionif100%ofitsenergyefficiencygoals areachievedduringthethree-yearperiod.AmerenMissouri mustachieveatleast70%ofitsenergyefficiencygoals beforeitearnsanyincentiveaward.
Illinois IEIMAUndertheprovisionsoftheIEIMA,AmerenIllinois'electricdeliveryserviceratesaresubjecttoanannualrevenuerequirementreconciliationtoitsactualcosts.
Throughouteachyear,AmerenIllinoisrecordsaregulatory assetoraregulatoryliabilityandacorrespondingincrease ordecreasetooperatingrevenuesforanydifferences betweentherevenuerequirementreflectedincustomer ratesforthatyearanditsestimateoftheprobableincrease ordecreaseintherevenuerequirementexpectedto ultimatelybeapprovedbytheICCbasedonthatyear's 89 actualcostsincurred.AsofDecember31,2014,AmerenIllinoishadrecordedregulatoryassetsof$101millionand
$65milliontoreflectitsexpected2014and2013revenue requirementreconciliationadjustments,respectively,with interest.AsofDecember31,2013,AmerenIllinoishad recordeda$65millionregulatoryliabilitytoreflectits2012 revenuerequirementreconciliationadjustment,whichwas refunded,withinterest,tocustomersduring2014.InDecember2014,theICCissuedanorderinAmerenIllinois'annualupdatefilingapprovinga$204million increaseinAmerenIllinois'electricdeliveryservicerevenue requirementbeginninginJanuary2015.Thisupdate reflectsanincreasetotheannualformularatebasedon 2013actualcostsandexpectednetplantadditionsfor 2014,anincreasetoincludethe2013revenuerequirement reconciliationadjustment,whichwasrecordedasa regulatoryassetatDecember31,2014,andanincrease resultingfromtheconclusionofthe2014refundto customersforthe2012revenuerequirementreconciliation
adjustment.InFebruary2014,AmerenIllinoisfiledanappealoftheICC'sDecember2013annualformularateordertothe AppellateCourtoftheFourthDistrictofIllinoisregarding theratetreatmentofaccumulateddeferredincometaxes relatedtothetransferofformerAmerenMissourielectric assetslocatedinIllinoistoAmerenIllinois.AmerenIllinois withdrewthisappealinFebruary2015.IntheDecember2013order,theICCdisallowed,inpart,therecoveryfromcustomersofthedebtpremium costspaidbyAmerenIllinoisforatenderofferinAugust 2012torepurchaseoutstandingseniorsecurednotes.Asa resultoftheICCorder,in2013,AmerenandAmerenIllinois eachrecordedapretaxchargetoearningsof$15million relatingtothepartialdisallowanceofthedebtpremium costs.IntheDecember2014orderdiscussedabove,the ICCallowedpartialrecoveryfromcustomersofcertain previouslydisalloweddebtpremiumcosts.Accordingly,in 2014,AmerenandAmerenIllinoiseachrecordedapretax increasetoearningsof$11milliontoreflectthepartial recoveryofthedebtpremiumcosts.AmerenandAmeren Illinoisrecordedtheeffectsofbothordersto"Interest charges"withacorrespondingoffsetto"Regulatory
assets."2015NaturalGasDeliveryServiceRateCaseInJanuary2015,AmerenIllinoisfiledarequestwiththeICCseekingapprovaltoincreaseitsannualrevenuesfornaturalgasdeliveryserviceby$53million.Therequestwas basedona10.25%returnoncommonequity,acapital structurecomposedof50%commonequity,andarate baseof$1.2billion.Inanattempttoreduceregulatorylag, AmerenIllinoisuseda2016futuretestyearinthis proceeding.Includedintherequestwasaproposalto implementadecouplingridermechanismforresidentialand smallnonresidentialcustomers.Thedecouplingriderwould ensurethatchangesinnaturalgassalesvolumesdonot affectAmerenIllinois'annualnaturalgasrevenuesforthese rateclasses.AdecisionbytheICCinthisproceedingisrequiredbyDecember2015,withnewratesexpectedtobeeffectivein January2016.AmerenIllinoiscannotpredictthelevelof anydeliveryserviceratechangestheICCmayapprove,or whethertheICCwillapprovethedecouplingrider,or whetheranyratechangesthatmayeventuallybeapproved willbesufficienttoenableAmerenIllinoistorecoverits costsandtoearnareasonablereturnoninvestmentswhen theratechangesgointoeffect.2013NaturalGasDeliveryServiceRateOrderInDecember2013,theICCissuedarateorderthatapprovedanincreaseinrevenuesforAmerenIllinois'naturalgasdeliveryserviceof$32million.Therevenue increasewasbasedona9.1%returnoncommonequity,a capitalstructurecomposedof51.7%commonequity,anda ratebaseof$1.1billion.Therateorderwasbasedona 2014futuretestyear.Theratechangesbecameeffective January1,2014.InMarch2014,AmerenIllinoisfiledwith theAppellateCourtoftheFourthDistrictofIllinoisan appealoftheallowedreturnoncommonequityincludedin theICC'sorderandalsoappealedtheratetreatmentof accumulateddeferredincometaxesrelatedtothetransfer offormerAmerenMissourinaturalgasassetslocatedin IllinoistoAmerenIllinois.AmerenIllinoissoughta10.4%
returnoncommonequityinthisratecase.InFebruary 2015,AmerenIllinoiswithdrewitsappealsolelyasitrelated totheratetreatmentoftheaccumulateddeferredincome
taxes.ATXITransmissionProjectATXI'sSpoonRiverprojectinnorthwestIllinoisisaMISO-approvedtransmissionlineprojectwithanexpectedcostof$150million.InAugust2014,ATXImadeafiling withtheICCrequestingacertificateofpublicconvenience andnecessityandprojectapprovalfortheSpoonRiver project.AdecisionisexpectedfromtheICCin2015.A certificateofpublicconvenienceandnecessityisrequired beforeATXIcanproceedwithright-of-wayacquisitions.
Federal2011WholesaleDistributionRateCaseInJanuary2011,AmerenIllinoisfiledarequestwiththeFERCtoincreaseitsannualrevenuesforelectricdeliveryservicetoitswholesalecustomers.These wholesaledistributionrevenuesaretreatedasadeduction fromAmerenIllinois'revenuerequirementinretailrate filingswiththeICC,withnomaterialeffectonnetincome.
InMarch2011,theFERCissuedanorderauthorizingthe proposedratestotakeeffect,subjecttorefundwhenthe finalratesaredetermined.InSeptember2014,theFERC issuedanorderthatfinalizedratesandresultedinrefunds duetothewholesalecustomers.InOctober2014,Ameren Illinoisrefunded$24million,includinginterest,tothe wholesalecustomersandrequestedarehearingoncertain aspectsoftheorder.
90 AmerenIllinoisElectricTransmissionRateRefundInJuly2012,theFERCissuedanorderconcludingthatAmerenIllinoisimproperlyincludedacquisitionpremiums,includinggoodwill,indeterminingthecommonequityused initselectrictransmissionformularateandthereby inappropriatelyrecoveredahigheramountfromitselectric transmissioncustomers.TheorderrequiredAmerenIllinois tomakerefundstocustomersforsuchimproperlyincluded amounts.InAugust2012,AmerenIllinoisfiledarequestfor arehearingofthisorder.AmerenIllinoissubmittedarefundreportinNovember2012andconcludedthatnorefundwaswarranted.Several wholesalecustomersfiledaprotestwiththeFERC regardingthatconclusion.InJune2013,theFERCissued anorderthatrejectedAmerenIllinois'November2012 refundreportandprovidedguidanceastothefilingofa newrefundreport.InJuly2013,AmerenIllinoisfileda revisedrefundreportbasedontheguidanceprovidedinthe June2013order,aswellasarequestforarehearingofthat order.AmerenIllinois'July2013refundreportalso concludedthatnorefundwaswarranted.InJune2014,theFERCissuedanorderthatdeniedAmerenIllinois'rehearingrequestsoftheJuly2012order andtheJune2013order.Separately,inJune2014,the FERCissuedanorderestablishingsettlementprocedures and,ifnecessary,hearingproceduresregardingAmeren Illinois'July2013refundreport.InJuly2014,Ameren IllinoisfiledanappealoftheFERCorderdenyingrehearing oftheJuly2012andJune2013orderswiththeUnited StatesCourtofAppealsfortheDistrictofColumbiaCircuit.
AlsoinJuly2014,AmerenIllinoisfiledarequestfor rehearingwiththeFERCofitsJune2014orderregarding theJuly2013refundreport.InNovember2014,theUnited StatesCourtofAppealsfortheDistrictofColumbiaissued anordersuspendingtheappealuntiltherelatedFERC proceedingshavebeencompleted.AmerenIllinoisestimatesthemaximumpretaxchargetoearningsforthispossiblerefundobligationthrough December31,2014,is$22million.AmerenandAmeren Illinoisrecordedacurrentliabilityrepresentingtheir estimateoftheprobablerefundduetoelectrictransmission customersbasedontheJune2014order.IfAmerenIllinois wastodeterminethatarefundtoitselectrictransmission customersinexcessoftheamountalreadyrecordedis probable,anadditionalchargetoearningswouldbe recordedintheperiodinwhichthatdeterminationwas
made.FERCComplaintCasesInNovember2013,acustomergroupfiledacomplaintcasewiththeFERCseekingareductionintheallowedbasereturnoncommonequityfortheFERC-regulatedMISO transmissionratebaseundertheMISOtariffto9.15%.
Currently,theFERC-allowedbasereturnoncommonequity forMISOtransmissionownersis12.38%.InOctober2014, theFERCissuedanorderestablishingsettlementproceduresand,ifnecessary,hearingproceduresregarding theallowedbasereturnoncommonequity.InJanuary 2015,thesettlementjudgeterminatedsettlement proceedingsandtheFERCscheduledthecaseforhearing proceedings,requiringaninitialdecisiontobeissuedno laterthanNovember30,2015.Astheoriginal15-month refundperiodfortheNovember2013complaintcaseended inFebruary2015,anothercustomercomplaintcasewas filedinFebruary2015.TheFebruary2015complaintcase seeksareductionintheallowedbasereturnoncommon equityfortheFERC-regulatedMISOtransmissionratebase undertheMISOtariffto8.67%.InOctober2014,theFERCissuedanorderinaproceeding,inwhichtheAmerenCompanieswerenot involved,reducingtheallowedbasereturnoncommon equityforNewEnglandtransmissionownersfrom11.14%
to10.57%,withrateincentivesallowedupto11.74%.The FERCorderintheNewEnglandtransmissionowners'case appliedobservablemarketdatafromOctober2012to March2013todeterminetheallowedbasereturnon commonequity.TheFERCexpectstheevidenceandthe calculationusedintheNewEnglandtransmissionowners' casetoguideitsdecisionintheMISOcomplaintcase discussedabove.TheFERCcalculationwillestablishthe allowedbasereturnoncommonequity,whichspecifiesa uniquetimeperiodforeachcomplaintcase,andwillrequire multipleinputsbasedonobservablemarketdataspecificto theutilityindustryandbroadermacroeconomicdata.In January2015,thesettlementjudgefortheMISOcomplaint caseorderedthatJuly13,2015,shouldbethecut-offdate fortheobservablemarketdatatobeusedinthecalculation oftheallowedbasereturnoncommonequity.Basedonthe informationintheseorders,AmerenandAmerenIllinois recordedcurrentliabilitiesrepresentingtheirestimateofthe requiredrefundsfromtherefundeffectivedateof November12,2013,throughDecember31,2014.Ameren MissourididnotrecordaliabilityasofDecember31,2014, anddoesnotexpectthatareductionintheFERC-allowed basereturnoncommonequityforMISOtransmission ownerswouldbematerialtoitsresultsofoperations, financialposition,orliquidity.InNovember2014,wefiledarequestwiththeFERCtoincludeanincentiveadderofupto50basispointsonthe allowedbasereturnoncommonequityforparticipationin anRTO,andwesoughtauthorizationtodefercollectionofit untilaftertheissuanceofthefinalorderaddressingthe initialMISOcomplaintcasediscussedabove.FERC approvedtherequesttoimplementtheincentiveadder prospectivelyfromJanuary6,2015,andtodefercollection ofituntiltheissuanceofthefinalorderaddressingthe initialMISOcomplaintcase.AmerenMissouriPowerPurchaseAgreementwithEntergyBeginningin2005,theFERCissuedaseriesofordersaddressingacomplaintfiledin2001bytheLouisianaPublicServiceCommissionagainstEntergyandcertainofits affiliates.Thecomplaintallegedunjustandunreasonable costallocations.AsaresultoftheFERCorders,Entergy 91 beganbillingAmerenMissouriin2007foradditionalchargesundera165-megawattpowerpurchaseagreement thatexpiredAugust31,2009.InMay2012,theFERC issuedanorderstatingthatEntergyshouldnothave includedadditionalchargestoAmerenMissouriunderthe powerpurchaseagreement.Pursuanttotheorder,inJune 2012,EntergypaidAmerenMissouri$31million,with
$24millionrecordedasareductionto"OperatingExpenses-Purchasedpower"expenseand$5millionforinterest recordedas"Miscellaneousincome"inthestatementof income.Theremaining$2millionwasrecordedasanoffset totheFACunder-recoveredregulatoryassetfortheamount refundabletocustomers.TheamountoftheEntergyrefund recordedtotheFACregulatoryassetrelatedtotheperiod whentheFACwaseffective;therefore,suchcostswere previouslyincludedincustomerrates.InNovember2013, EntergyfiledanappealoftheFERC'sMay2012orderwith theUnitedStatesCourtofAppealsfortheDistrictof ColumbiaCircuit.Amerenisnotabletopredictwhenor howthecourtwillruleonEntergy'sappeal.TheLouisianaPublicServiceCommissionappealedtheFERC'sordersregardingLouisianaPublicService Commission'scomplaintagainstEntergyServices,Inc.to theUnitedStatesCourtofAppealsfortheDistrictof ColumbiaCircuit.ThatcourtorderedfurtherFERC proceedingsregardingLouisianaPublicService Commission'scomplaint.AmerenMissouriestimatesthatit couldincuranadditionalexpenseofupto$8millionifthe FERC'sMay2012orderisoverturnedonappeal.AmerenMissouribelievesthatthelikelihoodofincurringany expenseisnotprobable,andthereforenoliabilityhasbeen recordedasofDecember31,2014.CombinedConstructionandOperatingLicenseIn2008,AmerenMissourifiledanapplicationwiththeNRCforaCOLforanewnuclearunitatAmerenMissouri'sexistingCallawayCounty,Missouri,energycentersite.In 2009,AmerenMissourisuspendeditseffortstobuildanew nuclearunitattheCallawaysite,andtheNRCsuspended reviewoftheCOLapplication.Thesuspendedstatusofthe COLapplicationcurrentlyextendsthroughtheendof2015.AmerenMissouriestimatesthetotalcosttoobtainaCOLfortheCallawaysitetobeapproximately$100million.
AsofDecember31,2014,AmerenMissourihadcapitalized investmentsof$69millionforthedevelopmentofanew nuclearenergycenter.Amereniscurrentlyevaluatingall potentialnucleartechnologiesinordertomaintainan optionfornuclearpowerinthefuture.AllofAmerenMissouri'scapitalizedinvestmentsforthedevelopmentofanewnuclearenergycenterwillremain capitalizedwhilemanagementpursuesoptionstomaximize thevalueofitsinvestment.Ifeffortstolicenseadditional nucleargenerationareabandoned,theNRCdoesnotextend theCOLapplicationsuspendedstatus,orifmanagement concludesitisprobablethatthecostsincurredwillbe disallowedinrates,achargetoearningswouldbe recognizedintheperiodinwhichthatdeterminationis
made.92 RegulatoryAssetsandLiabilitiesInaccordancewithauthoritativeaccountingguidanceregardingaccountingfortheeffectsofcertaintypesofregulation,wedefercertaincostsasregulatoryassetspursuanttoactionsofregulatorsorbasedontheexpectedabilitytorecoversuchcostsinrateschargedtocustomers.Wemayalsodefercertainamountsasregulatoryliabilitiesbecauseofactionsof regulatorsorbecauseoftheexpectationthatsuchamountswillbereturnedtocustomersinfuturerates.Thefollowingtable presentsourregulatoryassetsandregulatoryliabilitiesatDecember31,2014and2013:
2014 2013 Ameren Missouri AmerenIllinoisAmeren Ameren Missouri AmerenIllinoisAmerenCurrentregulatoryassets:Under-recoveredFAC (a)(b)..............................$128$-$128$104$-$104Under-recoveredIllinoiselectricpowercosts (c)..............-22-11Under-recoveredPGA (c)................................-2020-11MTMderivativelosses (d)...............................324274143650Energyefficiencyriders (e)..............................3-3---IEIMArevenuerequirementreconciliation (a)(f)...............-6565---FERCrevenuerequirementreconciliation (a)(g)...............--3---Totalcurrentregulatoryassets
............................$163$129$295$118$38$156Noncurrentregulatoryassets:Pensionandpostretirementbenefitcosts (h)................$148$275$423$44$140$184Incometaxes (i).......................................25332562307237Assetretirementobligations (j)...........................-55-55Callawaycosts (a)(k)....................................36-3640-40Unamortizedlossonreacquireddebt (a)(l)...................72801527774151Contaminatedfacilitiescosts (m)..........................-251251-271271MTMderivativelosses (d)...............................141441588118126Stormcosts (n).......................................-33538Demand-sidecostsbeforetheMEEIAimplementation (a)(o).....44-4458-58Workers'compensationclaims (p)........................77146612Creditfacilitiesfees (q).................................5-55-5Commonstockissuancecosts (r).........................2-24-4Constructionaccountingforpollutioncontrolequipment (a)(s)...21-2122-22Solarrebateprogram (a)(t)...............................88-8827-27IEIMArevenuerequirementreconciliation (a)(f)...............-101101-6565FERCrevenuerequirementreconciliation (a)(g)...............-812--5 Other (u)............................................561181220Totalnoncurrentregulatoryassets
.........................$695$883$1,582$534$701$1,240Currentregulatoryliabilities:Over-recoveredFAC (b).................................$-$-$-$26$-$26Over-recoveredIllinoiselectricpowercosts (c)...............-2626-5151Over-recoveredPGA (c).................................2252752934MTMderivativegains (d)................................1611726127Wholesaledistributionrefund (v)..........................----1313IEIMArevenuerequirementreconciliation (f)................----6565FERCrevenuerequirementreconciliation (g).................-1111---RefundreservesforFERCordersandauditfindings (w)........-2125---Totalcurrentregulatoryliabilities
..........................$18$84$106$57$159$216Noncurrentregulatoryliabilities:Incometaxes (x)......................................$41$14$55$37$3$40Uncertaintaxpositionstracker (y).........................7-71-1Removalcosts (z).....................................8866431,5298286101,438Assetretirementobligation (j)............................182-182146-146Baddebtriders (aa)....................................-77-88Pensionandpostretirementbenefitcoststracker (ab)..........24-2415-15Energyefficiencyriders (e)..............................-393933336FERCrevenuerequirementreconciliation (g).................----1010 Other (ac)............................................7-711-11Totalnoncurrentregulatoryliabilities
.......................$1,147$703$1,850$1,041$664$1,705(a)Theseassetsearnareturn.
93 (b)Under-recoveredorover-recoveredfuelcoststoberecoveredthroughtheFAC.Specificaccumulationperiodsaggregatetheunder-recoveredorover-recoveredcostsoverfourmonths,anyrelatedadjustmentsthatoccuroverthefollowingfourmonths,andtherecoveryfromcustomersthatoccursoverthenexteightmonths.(c)Costsunder-orover-recoveredfromutilitycustomers.Amountswillberecoveredfrom,orrefundedto,customerswithinoneyearofthe deferral.(d)Deferralofcommodity-relatedderivativeMTMlossesorgains.SeeNote7-DerivativeFinancialInstrumentsforadditionalinformation.
(e)TheAmerenMissouribalancerelatestotheMEEIA.BeginninginJanuary2014,aMEEIAriderallowedAmerenMissouritocollectfromorrefundtocustomersanyannualdifferenceintheactualamountsincurredandtheamountscollectedfromcustomersfortheMEEIAprogram costsanditslostrevenues.UndertheMEEIArider,collectionsfromorrefundstocustomersoccuroneyearaftertheprogramcostsandlost revenuesareincurred.TheAmerenIllinoisbalancerelatestoaregulatorytrackingmechanismtorecoveritselectricandnaturalgascosts associatedwithdeveloping,implementing,andevaluatingcustomerenergyefficiencyanddemandresponseprograms.Anyunder-recoveryor over-recoverywillbecollectedfromorrefundedtocustomersoverthe12monthsfollowingtheplanyear.(f)ThedifferencebetweenAmerenIllinois'annualrevenuerequirementcalculatedundertheIEIMA'sperformance-basedformularatemakingframeworkandtherevenuerequirementincludedincustomerratesforthatyear.SubjecttoICCapproval,theseamountswillbecollectedfrom orrefundedtocustomerswithintwoyears.(g)AmerenIllinois'andATXI'sannualrevenuerequirementreconciliationadjustmentscalculatedpursuanttotheFERC'selectrictransmissionformularatemakingframework.Theunder-recoveryorover-recoverywillberecoveredfromorrefundedtocustomerswithintwoyears.(h)Thesecostsarebeingamortizedinproportiontotherecognitionofpriorservicecosts(credits)andactuariallosses(gains)attributabletoAmeren'spensionplanandpostretirementbenefitplans.SeeNote11-RetirementBenefitsforadditionalinformation.(i)Offsettocertaindeferredtaxliabilitiesforexpectedrecoveryoffutureincometaxeswhenpaid.Thiswillberecoveredovertheexpectedlifeoftherelatedassets.(j)RecoverableorrefundableremovalcostsforAROs,includingnetrealizedandunrealizedgainsandlossesrelatedtothenucleardecommissioningtrustfundinvestments.SeeNote1-SummaryofSignificantAccountingPolicies-AssetRetirementObligations.(k)AmerenMissouri'sCallawayenergycenteroperationsandmaintenanceexpenses,propertytaxes,andcarryingcostsincurredbetweentheplantin-servicedateandthedatetheplantwasreflectedinrates.Thesecostsarebeingamortizedovertheremaininglifeoftheenergycenter's currentoperatinglicense,whichexpiresin2024.(l)Lossesrelatedtoreacquireddebt.Theseamountsarebeingamortizedoverthelivesoftherelatednewdebtissuancesortheoriginallivesoftheolddebtissuancesifnonewdebtwasissued.(m)TherecoverableportionofaccruedenvironmentalsiteliabilitiesthatwillbecollectedfromelectricandnaturalgascustomersthroughICC-approvedcostrecoveryriders.Theperiodofrecoverywilldependonthetimingofremediationexpenditures.SeeNote15-Commitmentsand Contingenciesforadditionalinformation.(n)AmerenMissouri'sactualstormcoststhatexceedthenormalizedstormcostsforratepurposes.AsapprovedbytheDecember2012MoPSCelectricrateorder,the2006,2007,and2008stormcostswereamortizedthroughDecember2014.TheAmerenIllinoisbalanceincludes2013 stormcostsdeferredinaccordancewiththeIEIMA.Thesecostsarebeingamortizedoverafive-yearperiodbeginningin2013.(o)Demand-sidecostsincurredpriortoimplementationoftheMEEIAin2013,includingthecostsofdeveloping,implementingandevaluatingcustomerenergyefficiencyanddemandresponseprograms.CostsincurredfromMay2008throughSeptember2008arebeingamortizedover a10-yearperiodthatbeganinMarch2009.CostsincurredfromOctober2008throughDecember2009arebeingamortizedoverasix-year periodthatbeganinJuly2010.CostsincurredfromJanuary2010throughFebruary2011arebeingamortizedoverasix-yearperiodthatbegan inAugust2011.CostsincurredfromMarch2011throughJuly2012arebeingamortizedoverasix-yearperiodthatbeganinJanuary2013.The amortizationperiodforcostsincurredfromAugust2012throughDecember2012willbedeterminedintheJuly2014electricratecase.(p)Theperiodofrecoverywilldependonthetimingofactualexpenditures.
(q)AmerenMissouri'scostsincurredtoenterintoandmaintainthe2012MissouriCreditAgreement.AdditionalcostswereincurredinDecember2014toamendandrestatethe2012MissouriCreditAgreement.Thesecostsarebeingamortizedoverthelifeofthecreditfacility,endingin December2019,toconstructionworkinprogress,whichwillbedepreciatedwhenassetsareplacedintoservice.(r)TheMoPSC'sMay2010electricrateorderallowedAmerenMissouritorecoveritsportionofAmeren'sSeptember2009commonstockissuancecosts.Thesecostsarebeingamortizedoverfiveyears,beginninginJuly2010.(s)TheMoPSC'sMay2010electricrateorderallowedAmerenMissouritorecordanallowanceforfundsusedduringconstructionforpollutioncontrolequipmentatitsSiouxenergycenteruntilthecostofthatequipmentwasincludedincustomerrates.Thesecostswillbeamortized overtheexpectedlifeoftheSiouxenergycenter,whichiscurrentlythrough2033.(t)CostsassociatedwithAmerenMissouri'ssolarrebateprogrambeginninginAugust2012tofulfillitsrenewableenergyportfoliorequirement.Theamortizationperiodforthesecostswillbethreeyears,commencingwiththeeffectivenessofAmerenMissouri'scurrentJuly2014electric ratecase.(u)TheAmerenIllinoisbalanceincludesAmerenIllinoisMergerintegrationandoptimizationcosts,whicharebeingamortizedoverfouryears,beginninginJanuary2012.TheAmerenIllinoistotalalsoincludescostsrelatedtothe2013naturalgasdeliveryserviceratecasecosts,which arebeingamortizedoveratwo-yearperiodthatbeganinJanuary2014.AtAmerenMissouri,thebalanceprimarilyincludesthecostof renewableenergycreditstofulfillitsrenewableenergyportfoliorequirement.CostsincurredfromJanuary2010throughJuly2012arebeing amortizedoverthreeyears,beginninginJanuary2013.(v)EstimatedrefundtowholesaleelectriccustomersasofDecember31,2013.See2011WholesaleDistributionRateCaseabove.
(w)EstimatedrefundstotransmissioncustomersrelatedtoFERCordersandauditfindings.InregardstotheFERCorders,seeAmerenIllinoisElectricTransmissionRateRefundandFERCComplaintCasesabove.(x)Unamortizedportionofinvestmenttaxcreditsandfederalexcessdeferredtaxes.Theunamortizedportionofinvestmenttaxcreditsandthefederalexcessdeferredtaxesarebeingamortizedovertheexpectedlifeoftheunderlyingassets.(y)Thetrackerisamortizedoverthreeyears,beginningfromthedatetheamountsareincludedinrates.SeeNote13-IncomeTaxesforadditional information.(z)Estimatedfundscollectedfortheeventualdismantlingandremovalofplantfromservice,netofsalvagevalue,uponretirementrelatedtoourrate-regulatedoperations.
94 (aa)AregulatorytrackingmechanismforthedifferencebetweenthelevelofbaddebtincurredbyAmerenIllinoisunderGAAPandthelevelofsuchcostsincludedinelectricandnaturalgasrates.Theover-recoveryrelatingto2012wasrefundedtocustomersfromJune2013throughMay2014.Theover-recoveryrelatingto2013isbeingrefundedtocustomersfromJune2014throughMay2015.Theover-recoveryrelatingto 2014willberefundedtocustomersfromJune2015throughMay2016.(ab)AregulatorytrackingmechanismforthedifferencebetweenthelevelofpensionandpostretirementbenefitcostsincurredbyAmerenMissouriunderGAAPandthelevelofsuchcostsbuiltintorates.ForperiodspriortoAugust2012,theMoPSC'sDecember2012electricrateorder directedtheamortizationtooccuroverfiveyears,beginninginJanuary2013.ForperiodsafterAugust2012,theamortizationperiodwillbe determinedintheJuly2014electricratecase.(ac)BalanceincludesthecostsofrenewableenergycreditstofulfillAmerenMissouri'srenewableenergyportfoliorequirementfromAugust2012throughDecember2013,whichwerelessthantheamountincludedinrates.Thebalancealsoincludesaregulatorytrackingmechanismat AmerenMissouriforthedifferencebetweenthelevelofstormcostsincurredinaparticularyearandthelevelofsuchcostsbuiltintorates.The amortizationperiodsfortheseover-recoverieswillbedeterminedintheJuly2014electricratecase.Ameren,AmerenMissouri,andAmerenIllinoiscontinuallyassesstherecoverabilityoftheirregulatoryassets.Undercurrentaccountingstandards,regulatoryassetsarechargedtoearningswhenitisnolongerprobablethatsuchamountswillberecoveredthroughfuturerevenues.Totheextentthatpaymentsofregulatoryliabilitiesarenolongerprobable,theamounts arecreditedtoearnings.NOTE3-PROPERTYANDPLANT,NETThefollowingtablepresentspropertyandplant,net,foreachoftheAmerenCompaniesatDecember31,2014and2013:
Ameren Missouri (a)AmerenIllinoisOtherAmeren (a)2014Propertyandplant,atoriginalcost:
Electric.................................................................$17,052$6,517$344$23,913Naturalgas
..............................................................4311,854-2,28517,4838,37134426,198Less:Accumulateddepreciationandamortization
..................................7,0862,4222519,75910,3975,9499316,439Constructionworkinprogress:Nuclearfuelinprocess
.....................................................209--209 Other..................................................................261216299776Propertyandplant,net
.......................................................$10,867$6,165$392$17,424 2013 Propertyandplant,atoriginalcost:
Electric.................................................................$15,964$5,426$336$21,726Naturalgas..............................................................4131,562-1,97516,3776,98833623,701Less:Accumulateddepreciationandamortization
..................................6,7661,6272518,6449,6115,3618515,057Constructionworkinprogress:Nuclearfuelinprocess.....................................................246--246 Other..................................................................59522879902Propertyandplant,net.......................................................$10,452$5,589$164$16,205(a)AmountsinAmerenandAmerenMissouriincludetwoCTsunderseparatecapitalleaseagreements.Thegrosscumulativeassetvalueofthoseagreementswas$233millionand$228millionatDecember31,2014and2013,respectively.ThetotalaccumulateddepreciationassociatedwiththetwoCTswas$66millionand$56millionatDecember31,2014and2013,respectively.Inaddition,AmerenMissourihasinvestments indebtsecurities,whichwereclassifiedasheld-to-maturity,relatedtothetwoCTsfromthecityofBowlingGreenandAudrainCounty.Asof December31,2014and2013,thecarryingvalueofthesedebtsecuritieswas$294millionand$299million,respectively.
95 ThefollowingtableprovidesaccruedcapitalandnuclearfuelexpendituresatDecember31,2014,2013,and2012,whichrepresentnoncashinvestingactivityexcludedfromtheaccompanyingstatementsofcashflows:
Ameren (a)Ameren Missouri Ameren IllinoisAccruedcapitalexpenditures:
2014...................................................................................$181$72$59 2013...................................................................................1757486 2012...................................................................................1076337Accruednuclearfuelexpenditures:
2014...................................................................................1313(b)2013...................................................................................88(b) 2012...................................................................................88(b)(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.
(b)Notapplicable.NOTE4-SHORT-TERMDEBTANDLIQUIDITYTheliquidityneedsoftheAmerenCompaniesaretypicallysupportedthroughtheuseofavailablecash,short-termintercompanyborrowings,drawingsundercommittedbankcreditagreements,orcommercialpaperissuances.2012CreditAgreementsOnDecember11,2014,eachofthe2012CreditAgreementswasamendedandrestated.Theamendedandrestatedagreementsextendedthematuritydatesofthe2012CreditAgreementsfromNovember14,2017,toDecember11,2019,resultingin$2.1billionofcreditprovidedthroughtheextendedmaturitydate.Thefacilitiescontinuetoinclude24 international,national,andregionallenders,withnosinglelenderprovidingmorethan$115millionofcreditinaggregate.Theobligationsofeachborrowerundertherespective2012CreditAgreementstowhichitisapartyareseveralandnotjoint,and,exceptunderlimitedcircumstancesrelatingtoexpensesandindemnities,theobligationsofAmerenMissouriand AmerenIllinoisundertherespective2012CreditAgreementsarenotguaranteedbyAmerenoranyothersubsidiaryof Ameren.Themaximumaggregateamountavailabletoeachborrowerundereachfacilityisshowninthefollowingtable(the amountbeingeachborrower's"BorrowingSublimit"):2012MissouriCreditAgreement2012IllinoisCreditAgreement Ameren..........................................................................$700$500AmerenMissouri...................................................................800(a)AmerenIllinois.....................................................................(a)800(a)Notapplicable.Amerenhastheoptiontoseekadditionalcommitmentsfromexistingornewlenderstoincreasethetotalfacility sizeofthe2012CreditAgreementsuptoamaximum amountof$1.2billionforthe2012MissouriCredit Agreementand$1.3billionforthe2012IllinoisCredit Agreement.The2012CreditAgreements,aswellasthe BorrowingSublimitsofAmeren,AmerenMissouri,and AmerenIllinois,willmatureandexpireonDecember11, 2019.Theprincipalamountofeachrevolvingloanowedby aborrowerunderanyofthe2012CreditAgreementsto whichitisapartywillbedueandpayablenolaterthanthe maturitydateofsuch2012CreditAgreement.Theprincipal amountofeachrevolvingloanowedbyAmerenMissourior AmerenIllinoisundertheapplicable2012CreditAgreement willbedueandpayablenolaterthantheearlierofthe maturitydateor364daysafterthedateofsuchloan.Theobligationsofallborrowersunderthe2012CreditAgreementsareunsecured.Loansareavailableona revolvingbasisundereachofthe2012CreditAgreements.Fundsborrowedmayberepaidand,subjecttosatisfaction oftheconditionstoborrowing,reborrowedfromtimeto time.Attheelectionofeachborrower,theinterestrateson suchloanswillbethealternatebaserateplusthemargin applicabletotheparticularborrowerand/ortheeurodollar rateplusthemarginapplicabletotheparticularborrower.
Theapplicablemarginswillbedeterminedbythe borrower'slong-termunsecuredcreditratingsor,ifnosuch ratingsarethenineffect,theborrower'scorporate/issuer ratingsthenineffect.The2012CreditAgreementsprovide fortheissuanceoflettersofcreditfortheaccountofthe borrowersuptoamaximumof25%oftheaggregateinitial commitmentundertheapplicable2012CreditAgreement.
Theborrowershavereceivedcommitmentsfromthe lenderstoissuelettersofcreditupto$100millionunder eachofthe2012CreditAgreements.Inaddition,the issuanceoflettersofcreditissubjecttothe$2.1billion overallcombinedfacilityborrowinglimitationsofthe2012 CreditAgreements.
96 Theborrowerswillusetheproceedsfromanyborrowingsunderthe2012CreditAgreementsforgeneralcorporatepurposes,includingworkingcapital,commercial paperliquiditysupport,issuanceoflettersofcredit,loan fundingundertheAmerenmoneypoolarrangements,and othershort-termintercompanyloanarrangements,orfor payingfeesandexpensesincurredinconnectionwiththe 2012CreditAgreements.Bothofthe2012Credit AgreementsareavailabletoAmerentosupportissuances underAmeren'scommercialpaperprogram,subjectto borrowingsublimits.The2012MissouriCreditAgreementandthe2012IllinoisCreditAgreementareavailableto supportissuancesunderAmerenMissouri'sandAmeren Illinois'commercialpaperprograms,respectively.Asof December31,2014,basedoncommercialpaper outstandingandlettersofcreditissuedunderthe2012 CreditAgreements,theaggregateamountofcreditcapacity availabletoAmeren(parent),AmerenMissouri,andAmeren Illinois,collectively,atDecember31,2014,was$1.4billion.Ameren,AmerenMissouri,andAmerenIllinoisdidnotborrowunderthe2012CreditAgreementsfortheyears endedDecember31,2014and2013.CommercialPaperThefollowingtablesummarizestheborrowingactivityandrelevantinterestratesunderAmerenMissouri'sandAmerenIllinois'commercialpaperprogram,fortheyearsendedDecember31,2014and2013:
Ameren (parent)Ameren Missouri Ameren Illinois Ameren Consolidated 2014Averagedailycommercialpaperoutstanding
.......................................$423$110$165$639Outstandingborrowingsatperiod-end
............................................5859732714Weighted-averageinterestrate
..................................................0.36%0.38%0.32%0.36%Peakcommercialpaperduringperiod (a)...........................................$625$495$300$910Peakinterestrate
.............................................................0.75%0.70%0.60%0.75%
2013 Averagedailycommercialpaperoutstanding.......................................$54$-$-$54Outstandingborrowingsatperiod-end............................................368--368Weighted-averageinterestrate
..................................................0.56%-%-%0.56%Peakcommercialpaperduringperiod (a)...........................................$368$-$-$368Peakinterestrate
.............................................................0.85%-%-%0.85%IndebtednessProvisionsandOtherCovenantsTheinformationbelowpresentsasummaryoftheAmerenCompanies'compliancewithindebtednessprovisionsandothercovenants.The2012CreditAgreementscontainconditionsforborrowingsandissuancesoflettersofcredit.Theseinclude theabsenceofdefaultorunmatureddefault,material accuracyofrepresentationsandwarranties(excludingany representationaftertheclosingdateastotheabsenceof materialadversechangeandmateriallitigation,andthe absenceofanynoticeofviolation,liability,orrequirement underanyenvironmentallawsthatcouldhaveamaterial adverseeffect),andobtainmentofrequiredregulatory authorizations.Inaddition,itisaconditionforanyAmeren Illinoisborrowingthat,atthetimeofandaftergivingeffect tosuchborrowing,AmerenIllinoisnotbeinviolationofany limitationonitsabilitytoincurunsecuredindebtedness containedinitsarticlesofincorporation.The2012CreditAgreementsalsocontainnonfinancialcovenants,includingrestrictionsontheabilitytoincurliens, totransactwithaffiliates,todisposeofassets,tomake investmentsinortransferassetstoitsaffiliates,andto mergewithotherentities.The2012CreditAgreements requireeachofAmeren,AmerenMissouri,andAmeren Illinoistomaintainconsolidatedindebtednessofnotmore than65%ofitsconsolidatedtotalcapitalizationpursuanttoadefinedcalculationsetforthintheagreements.Asof December31,2014,theratiosofconsolidated indebtednesstototalconsolidatedcapitalization,calculated inaccordancewiththeprovisionsofthe2012Credit Agreements,were50%,49%,and47%,forAmeren, AmerenMissouri,andAmerenIllinois,respectively.In addition,underthe2012IllinoisCreditAgreementand,by virtueofthecross-defaultprovisionsofthe2012Missouri CreditAgreement,underthe2012MissouriCredit Agreement,Amerenisrequiredtomaintainaratioof consolidatedfundsfromoperationsplusinterestexpenseto consolidatedinterestexpenseof2.0to1.0.However,the interestcoveragerequirementwillonlyapplyatsuchtimes asAmerendoesnothaveaseniorlong-termunsecured creditratingofatleastBaa3fromMoody'sorBBB-from S&P.AsofDecember31,2014,Amerenexceededthe ratingrequirementsandtheinterestcoveragerequirement wasnotapplicable.Failureofaborrowertosatisfya financialcovenantconstitutesanimmediatedefaultunder theapplicable2012CreditAgreement.The2012CreditAgreementscontaindefaultprovisionsthatapplyseparatelytoeachborrower;provided,however, thatadefaultofAmerenMissouriorAmerenIllinoisunder theapplicable2012CreditAgreementwillalsobedeemed toconstituteadefaultofAmerenundersuchagreement.
Defaultsincludeacross-defaulttoadefaultofsuch borrowerunderanyotheragreementcoveringoutstanding 97 indebtednessofsuchborrowerandcertainsubsidiaries(otherthanprojectfinancesubsidiariesandnonmaterial subsidiaries)inexcessof$75millionintheaggregate (includingundertheother2012CreditAgreement).
However,underthedefaultprovisionsofthe2012Credit Agreements,anydefaultofAmerenunderany2012Credit AgreementthatresultssolelyfromadefaultofAmeren MissouriorAmerenIllinoisthereunderdoesnotresultina cross-defaultofAmerenundertheother2012Credit Agreement.Further,the2012CreditAgreementdefault provisionsprovidethatanAmerendefaultunderanyofthe 2012CreditAgreementsdoesnotconstituteadefaultby AmerenMissouriorAmerenIllinois.NoneoftheAmerenCompanies'creditagreementsorfinancingagreementscontaincreditratingtriggersthat wouldcauseadefaultoraccelerationofrepaymentof outstandingbalances.Managementbelievesthatthe AmerenCompanieswereincompliancewiththeprovisions andcovenantsoftheircreditagreementsatDecember31, 2014.MoneyPoolsAmerenhasmoneypoolagreementswithandamongitssubsidiariestocoordinateandprovideforcertainshort-termcashandworkingcapitalrequirements.AmerenMissouri,AmerenIllinois,andAmerenServicesmayparticipateintheutilitymoneypoolasboth lendersandborrowers.Amerenmayparticipateinthe moneypoolonlyasalender.Internalfundsaresurplus fundscontributedtothemoneypoolfromparticipants.The primarysourcesofexternalfundsforthemoneypoolare the2012CreditAgreementsandthecommercialpaper programs.Thetotalamountavailabletothepool participantsfromtheutilitymoneypoolatanygiventimeis reducedbytheamountofborrowingsmadebyparticipants, butitisincreasedtotheextentthatthepoolparticipants advancesurplusfundstotheutilitymoneypoolorremit fundsfromotherexternalsources.Theavailabilityoffunds isalsodeterminedbyfundingrequirementlimits establishedbyregulatoryauthorizations.Participants receivingaloanunderthemoneypoolagreementmust repaytheprincipalamountofsuchloan,togetherwith accruedinterest.Therateofinterestdependsonthe compositionofinternalandexternalfundsintheutility moneypool.Theaverageinterestrateforborrowingunder themoneypoolfortheyearendedDecember31,2014,was 0.19%(2013-0.14%).SeeNote14-RelatedPartyTransactionsfortheamountofinterestincomeandexpensefromthemoney poolarrangementsrecordedbytheAmerenCompaniesfor theyearsendedDecember31,2014,2013,and2012.
98 NOTE5-LONG-TERMDEBTANDEQUITYFINANCINGSThefollowingtablepresentslong-termdebtoutstanding,includingmaturitiesduewithinoneyear,fortheAmerenCompaniesasofDecember31,2014and2013:20142013Ameren(Parent):8.875%Seniorunsecurednotesdue2014
........................................................
$-$425Less:Maturitiesduewithinoneyear
..........................................................
-(425)Long-termdebt,net
.....................................................................
$-$-AmerenMissouri:Seniorsecurednotes: (a)5.50%Seniorsecurednotesdue2014
...........................................................
-1044.75%Seniorsecurednotesdue2015
...........................................................
114 1145.40%Seniorsecurednotesdue2016
...........................................................
260 2606.40%Seniorsecurednotesdue2017
...........................................................
425 4256.00%Seniorsecurednotesdue2018 (b).........................................................
179 1795.10%Seniorsecurednotesdue2018
...........................................................
199 1996.70%Seniorsecurednotesdue2019 (b).........................................................
329 3295.10%Seniorsecurednotesdue2019
...........................................................
244 2445.00%Seniorsecurednotesdue2020
...........................................................
85 853.50%Seniorsecurednotesdue2024
...........................................................
350-5.50%Seniorsecurednotesdue2034
...........................................................
184 1845.30%Seniorsecurednotesdue2037
...........................................................
300 3008.45%Seniorsecurednotesdue2039 (b).........................................................
350 3503.90%Seniorsecurednotesdue2042 (b).........................................................
485 485Environmentalimprovementandpollutioncontrolrevenuebonds:1992Seriesdue2022 (c)(d).....................................................................
47 4719935.45%Seriesdue2028 (e)................................................................(e)(e)1998SeriesAdue2033 (c)(d)...................................................................
60 601998SeriesBdue2033 (c)(d)...................................................................
50 501998SeriesCdue2033 (c)(d)...................................................................
50 50Capitalleaseobligations:CityofBowlingGreencapitallease(PenoCreekCT)due2022
........................................
54 59AudrainCountycapitallease(AudrainCountyCT)due2023
..........................................
240 240Totallong-termdebt,gross
.................................................................
4,005 3,764Less:Unamortizeddiscountandpremium
......................................................
(6)(7)Less:Maturitiesduewithinoneyear
..........................................................
(120)(109)Long-termdebt,net
.....................................................................$3,879$3,648 99 20142013AmerenIllinois:Seniorsecurednotes:6.20%Seniorsecurednotesdue2016 (f)..........................................................$54$546.25%Seniorsecurednotesdue2016 (g).........................................................
75 756.125%Seniorsecurednotesdue2017 (g)(h).......................................................
250 2506.25%Seniorsecurednotesdue2018 (g)(h)........................................................
144 1449.75%Seniorsecurednotesdue2018 (g)(h)........................................................
313 3132.70%Seniorsecurednotesdue2022 (g)(h)........................................................
400 4003.25%Seniorsecurednotesdue2025 (g).........................................................
300-6.125%Seniorsecurednotesdue2028 (g)........................................................
60 606.70%Seniorsecurednotesdue2036 (g).........................................................
61 616.70%Seniorsecurednotesdue2036 (f)..........................................................
42 424.80%Seniorsecurednotesdue2043 (g).........................................................
280 2804.30%Seniorsecurednotesdue2044 (g).........................................................
250-Environmentalimprovementandpollutioncontrolrevenuebonds:5.90%Series1993due2023 (i).................................................................(i)325.70%1994ASeriesdue2024 (j)................................................................(j)365.95%1993SeriesC-1due2026 (k).............................................................
-355.70%1993SeriesC-2due2026 (k).............................................................
-81993SeriesB-1due2028 (d)(k).................................................................
17 175.40%1998ASeriesdue2028 (j)................................................................
-195.40%1998BSeriesdue2028 (j)................................................................
-33Fair-marketvalueadjustments
...................................................................
-4Totallong-termdebt,gross
.................................................................
2,246 1,863Less:Unamortizeddiscountandpremium
......................................................
(5)(7)Less:Maturitiesduewithinoneyear
...........................................................
--Long-termdebt,net
.....................................................................$2,241$1,856Amerenconsolidatedlong-termdebt,net
...........................................................$6,120$5,504(a)ThesenotesarecollaterallysecuredbyfirstmortgagebondsissuedbyAmerenMissouriundertheAmerenMissourimortgageindenture.Thenoteshaveafall-awaylienprovisionandwillremainsecuredonlyaslongasanyfirstmortgagebondsissuedundertheAmerenMissourimortgageindentureremainoutstanding.Redemption,purchase,ormaturityofallfirstmortgagebonds,includingfirstmortgagebonds currentlyoutstandingandanythatmaybeissuedinthefuture,wouldresultinareleaseofthefirstmortgagebondscurrentlysecuringthese notes,atwhichtimethesenoteswouldbecomeunsecuredobligations.ConsideringtheAmerenMissouriseniorsecurednotescurrently outstanding,wedonotexpectthefirstmortgagebondlienprotectionassociatedwiththesenotestofallawayuntil2042.(b)AmerenMissourihasagreed,duringthelifeofthesenotes,nottooptionallyredeem,purchaseorotherwiseretireinfullitsfirstmortgagebonds.AmerenMissourihasalsoagreedtopreventafirstmortgagebondreleasedatefromoccurringaslongasanyofthe8.45%senior securednotesdue2039andanyofthe3.90%seniorsecurednotesdue2042remainoutstanding.(c)ThesebondsarecollaterallysecuredbyfirstmortgagebondsissuedbyAmerenMissouriundertheAmerenMissourimortgageindentureandhaveafall-awaylienprovisionsimilartothatofAmerenMissouri'sseniorsecurednotes.Thebondsarealsobackedbyaninsuranceguarantee
policy.(d)Theinterestrates,andtheperiodsduringwhichsuchratesapply,varydependingonourselectionofdefinedratemodes.Maximuminterestratescouldreach18%dependingontheseriesofbonds.Theaverageinterestratesfor2014and2013wereasfollows:
2014 2013AmerenMissouri1992Seriesdue2022
.......0.10%0.17%AmerenMissouri1998SeriesAdue2033
.....0.26%0.34%AmerenMissouri1998SeriesBdue2033
.....0.27%0.33%AmerenMissouri1998SeriesCdue2033
.....0.26%0.34%AmerenIllinois1993SeriesB-1due2028
.....0.21%0.14%(e)ThesebondsarefirstmortgagebondsissuedbyAmerenMissouriundertheAmerenMissourimortgagebondindentureandaresecuredbysubstantiallyallAmerenMissouripropertyandfranchises.Thebondsarecallableat100%ofparvalue.Lessthan$1millionprincipalamount ofthebondsremainoutstanding.(f)ThesenotesarecollaterallysecuredbyfirstmortgagebondsissuedbyAmerenIllinoisundertheCILCOmortgageindenture.Thenoteshaveafall-awaylienprovision,andAmerenIllinoiscouldcausethesenotestobecomeunsecuredatanytimebyredeemingthepollutioncontrol bonds5.90%Series1993due2023(ofwhichlessthan$1millionremainsoutstanding).AmerenIllinoismayresecurethesenotesifit
chooses.(g)ThesenotesarecollaterallysecuredbymortgagebondsissuedbyAmerenIllinoisundertheAmerenIllinoismortgageindenture.Thenoteshaveafall-awaylienprovisionandwillremainsecuredonlyaslongasanyseriesoffirstmortgagebondsissuedundertheAmerenIllinois mortgageindentureremainoutstanding.Redemption,purchase,ormaturityofallmortgagebonds,includingfirstmortgagebondscurrently outstandingandanythatmaybeissuedinthefuture,wouldresultinareleaseofthemortgagebondscurrentlysecuringthesenotes,atwhich timethesenoteswouldbecomeunsecuredobligations.ConsideringtheAmerenIllinoisseniorsecurednotescurrentlyoutstanding,wedonot expectthemortgagebondlienprotectionassociatedwiththesenotestofallawayuntil2024.
100 (h)AmerenIllinoishasagreed,duringthelifeofthesenotes,nottooptionallyredeem,purchase,orotherwiseretireinfullitsAmerenIllinoismortgagebonds;therefore,anAmerenIllinoisfirstmortgagebondreleasedatewillnotoccuraslongasanyofthesenotesareoutstanding.(i)ThesebondsarefirstmortgagebondsissuedbyAmerenIllinoisundertheCILCOmortgageindentureandaresecuredbysubstantiallyallpropertyoftheformerCILCO.Thebondsarecallableat100%ofparvalue.Lessthan$1millionprincipalamountofthebondsremain outstanding.(j)ThesebondsaremortgagebondsissuedbyAmerenIllinoisundertheAmerenIllinoismortgageindentureandaresecuredbysubstantiallyallpropertyoftheformerIPandCIPS.Thebondsarecallableat100%ofparvalue.Thebondsarealsobackedbyaninsuranceguaranteepolicy.
Lessthan$1millionprincipalamountofthebondsremainoutstanding.(k)Thebondsarecallableat100%ofparvalue.Thefollowingtablepresentstheaggregatematuritiesoflong-termdebt,includingcurrentmaturities,fortheAmerenCompaniesatDecember31,2014:
Ameren Missouri (a)Ameren Illinois (a)Ameren Consolidated 2015..................................................................$120$-$120 2016..................................................................266129395 2017..................................................................431250681 2018..................................................................383457840 2019..................................................................581-581 Thereafter
..............................................................2,2241,410 3,634 Total..................................................................$4,005$2,246$6,251(a)Excludesunamortizeddiscountandpremiumof$6millionand$5millionatAmerenMissouriandAmerenIllinois,respectively.AllclassesofAmerenMissouri'sandAmerenIllinois'preferredstockareentitledtocumulativedividends,havevotingrights,andarenotsubjecttomandatoryredemption.ThepreferredstockofAmeren'ssubsidiarieswasincludedin"NoncontrollingInterests"onAmeren'sconsolidatedbalancesheet.ThefollowingtablepresentstheoutstandingpreferredstockofAmerenMissouriandAmerenIllinois,whichisredeemable,attheoptionoftheissuer,atthepricesshownbelowas ofDecember31,2014and2013:RedemptionPrice(pershare)20142013AmerenMissouri:Withoutparvalueandstatedvalueof$100pershare,25millionsharesauthorized$3.50Series130,000shares....................$
110.00$13$13$3.70Series40,000shares
....................
104.75 4 4$4.00Series150,000shares
....................
105.625 15 15$4.30Series40,000shares
....................
105.00 4 4$4.50Series213,595shares
....................
110.00 (a)21 21$4.56Series200,000shares
....................
102.47 20 20$4.75Series20,000shares
....................
102.176 2 2$5.50SeriesA14,000shares
....................
110.00 1 1 Total...........................................................$80$80AmerenIllinois:
Withparvalueof$100pershare,2millionsharesauthorized4.00%Series144,275shares....................$
101.00$14$144.08%Series45,224shares
....................
103.00 5 54.20%Series23,655shares
....................
104.00 2 24.25%Series50,000shares
....................
102.00 5 54.26%Series16,621shares
....................
103.00 2 24.42%Series16,190shares
....................
103.00 2 24.70%Series18,429shares
....................
103.00 2 24.90%Series73,825shares
....................
102.00 7 74.92%Series49,289shares
....................
103.50 5 55.16%Series50,000shares
....................
102.00 5 56.625%Series124,274shares
....................
100.00 12 127.75%Series4,542shares
....................
100.00 1 1 Total...........................................................$62$62TotalAmeren
......................................................$142$142(a)Intheeventofvoluntaryliquidation,$105.50.
101 Amerenhas100millionsharesof$0.01parvaluepreferredstockauthorized,withnosharesoutstanding.AmerenMissourihas7.5millionsharesof$1parvalue preferencestockauthorized,withnosuchpreferencestock outstanding.AmerenIllinoishas2.6millionsharesofno parvaluepreferredstockauthorized,withnoshares
outstanding.
AmerenInMay2014,Ameren(parent)repaidatmaturity$425millionofits8.875%seniorunsecurednotes,plusaccruedinterest.Thenoteswererepaidwithproceedsfrom commercialpaperissuances.AmerenfiledaFormS-3registrationstatementwiththeSECinMay2014,authorizingtheofferingof8.6million additionalsharesofitscommonstockunderDRPlus,which expiresinMay2017.SharesofcommonstocksoldunderDRPlusare,atAmeren'soption,newlyissuedshares, treasuryshares,orsharespurchasedintheopenmarketor inprivatelynegotiatedtransactions.InOctober2013,AmerenfiledaFormS-8registrationstatementwiththeSEC,authorizingtheofferingof4million additionalsharesofitscommonstockunderits401(k) plan.Sharesofcommonstocksoldunderthe401(k)plan are,atAmeren'soption,newlyissuedshares,treasury shares,orsharespurchasedintheopenmarketorin privatelynegotiatedtransactions.InJune2012,Ameren,AmerenMissouri,andAmerenIllinoisfiledaFormS-3shelfregistrationstatement registeringtheissuanceofanindeterminateamountof certaintypesofsecurities,whichexpiresinJune2015.From2012through2014,AmerensharesforitsDRPlusandits401(k)planswerepurchasedintheopen
market.AmerenMissouriInApril2014,AmerenMissouriissued$350millionof3.50%seniorsecurednotesdueApril15,2024,withinterestpayablesemiannuallyonApril15andOctober15ofeachyear,beginningOctober15,2014.AmerenMissourireceived proceedsof$348million,whichwereusedtorepayatmaturity$104millionofits5.50%seniorsecurednotesdueMay15, 2014andtorepayaportionofitsshort-termdebt.InOctober2013,$44millionofAmerenMissouri's19935.45%Seriestax-exemptfirstmortgagebondswereredeemedatparvalueplusaccruedinterest,and$200millionofAmerenMissouri's4.65%seniorsecurednotesmaturedandwere
retired.AmerenIllinoisInJanuary2014,AmerenIllinoisredeemedthefollowingenvironmentalimprovementandpollutioncontrolrevenuebondsatparvalueplusaccruedinterest:SeniorSecuredNotesPrincipalAmount5.90%Series1993due2023 (a)...........................................................................$325.70%1994ASeriesdue2024 (a)..........................................................................361993SeriesC-15.95%due2026
.........................................................................351993SeriesC-25.70%due2026
.........................................................................
85.40%1998ASeriesdue2028
...........................................................................195.40%1998BSeriesdue2028
...........................................................................33Totalamountredeemed.................................................................................$163(a)Lessthan$1millionprincipalamountofthebondsremainoutstandingafterredemption.InJune2014,AmerenIllinoisissued$250millionof4.30%seniorsecurednotesdueJuly1,2044,withinterestpayablesemiannuallyonJanuary1andJuly1,beginningJanuary1,2015.AmerenIllinoisreceivedproceedsof$246million,whichwereusedtorepayaportionofitsshort-termdebt.InDecember2014,AmerenIllinoisissued$300millionof3.25%seniorsecurednotesdueMarch1,2025,withinterestpayablesemiannuallyonMarch1andSeptember1,beginningMarch1,2015.AmerenIllinoisreceivedproceedsof
$298million,whichwereusedtorepayaportionofitsshort-termdebt.InDecember2013,AmerenIllinoisissued$280millionprincipalamountof4.80%seniorsecurednotesdueDecember15,2043,withinterestpayablesemiannuallyonJune15andDecember15,beginningJune15,2014.Ameren Illinoisreceivednetproceedsof$276million.Theproceedswereused,togetherwithotheravailablecash,torepayatmaturity
$150millionofits8.875%seniorsecurednotesdueDecember15,2013,andtorepayitsshort-termdebt.
102 IndentureProvisionsandOtherCovenantsAmerenMissouri'sandAmerenIllinois'indenturesandarticlesofincorporationincludecovenantsandprovisionsrelatedtoissuancesoffirstmortgagebondsandpreferredstock.AmerenMissouriandAmerenIllinoisarerequiredtomeetcertainratiostoissueadditionalfirstmortgagebondsandpreferredstock.Afailuretoachievetheseratioswouldnotresultina defaultunderthesecovenantsandprovisionsbutwouldrestrictthecompanies'abilitytoissuebondsorpreferredstock.The followingtablesummarizestherequiredandactualinterestcoverageratiosforinterestcharges,dividendcoverageratios,and bondsandpreferredstockissuableasofDecember31,2014,atanassumedinterestrateof5%anddividendrateof6%.RequiredInterestCoverageRatio (a)ActualInterestCoverageRatioBondsIssuable (b)RequiredDividendCoverageRatio (c)ActualDividendCoverageRatioPreferredStock IssuableAmerenMissouri
....2.04.3$3,6052.5115.1$2,568AmerenIllinois
......2.06.43,358 (d)1.52.7208(a)Coveragerequiredontheannualinterestchargesonfirstmortgagebondsoutstandingandtobeissued.Coverageisnotrequiredincertaincaseswhenadditionalfirstmortgagebondsareissuedonthebasisofretiredbonds.(b)Amountofbondsissuablebasedeitheronrequiredcoverageratiosorunfundedpropertyadditions,whicheverismorerestrictive.Theamountsshownalsoincludebondsissuablebasedonretiredbondcapacityof$832millionand$204millionatAmerenMissouriandAmerenIllinois, respectively.(c)Coveragerequiredontheannualdividendonpreferredstockoutstandingandtobeissued,asrequiredintherespectivecompany'sarticlesof incorporation.(d)AmountofbondsissuablebyAmerenIllinoisbasedonunfundedpropertyadditionsandretiredbondssolelyundertheformerIPmortgage indenture.AmerenMissouriandAmerenIllinoisandcertainothernonregistrantAmerensubsidiariesaresubjecttoSection305(a)oftheFederalPowerAct,whichmakesit unlawfulforanyofficerordirectorofapublicutility,as definedintheFederalPowerAct,toparticipateinthe makingorpayingofanydividendfromanyfunds"properly includedincapitalaccount."TheFERChasconsistently interpretedtheprovisiontoallowdividendstobepaidas longas(1)thesourceofthedividendsisclearlydisclosed, (2)thedividendsarenotexcessive,and(3)thereisnoself-dealingonthepartofcorporateofficials.Ataminimum, Amerenbelievesthatdividendscanbepaidbyits subsidiariesthatarepublicutilitiesfromnetincomeand retainedearnings.Inaddition,underIllinoislaw,Ameren Illinoismaynotpayanydividendonitsstock,unless, amongotherthings,itsearningsandearnedsurplusare sufficienttodeclareandpayadividendafterprovisionis madeforreasonableandproperreserves,orunlessAmeren IllinoishasspecificauthorizationfromtheICC.AmerenIllinois'articlesofincorporationrequiredividendpaymentsonitscommonstocktobebasedonratiosofcommonstocktototalcapitalizationandother provisionsrelatedtocertainoperatingexpensesand accumulationsofearnedsurplus.AmerenIllinois committedtotheFERCtomaintainaminimum30%ratioof commonstockequitytototalcapitalization.Asof December31,2014,AmerenIllinois'ratioofcommonstock equitytototalcapitalizationwas53%.InorderfortheAmerenCompaniestoissuesecuritiesinthefuture,theywillhavetocomplywithallapplicable requirementsineffectatthetimeofanysuchissuances.Off-Balance-SheetArrangementsAtDecember31,2014,noneoftheAmerenCompanieshadanyoff-balance-sheetfinancingarrangements,otherthanoperatingleasesenteredintointheordinarycourseof business.NoneoftheAmerenCompaniesexpecttoengage inanysignificantoff-balance-sheetfinancingarrangements inthenearfuture.SeeNote16-DivestitureTransactions andDiscontinuedOperationsforAmeren(parent) guaranteesandlettersofcreditissuedtosupportNewAER basedonthetransactionagreementwithIPH.
103 NOTE6-OTHERINCOMEANDEXPENSESThefollowingtablepresentsthecomponentsof"OtherIncomeandExpenses"intheAmerenCompanies'statementsofincome(loss)fortheyearsendedDecember31,2014,2013,and2012:201420132012 Ameren: (a)Miscellaneousincome:Allowanceforequityfundsusedduringconstruction
.........................................$34$37$36Interestincomeonindustrialdevelopmentrevenuebonds
.....................................
272728Interestincome
......................................................................
10 (b)34 (d)Other..............................................................................
8 (c)22Totalmiscellaneousincome
..............................................................$79$69$70Miscellaneousexpense:
Donations..........................................................................$10$12$24 (e)Other..............................................................................
121413Totalmiscellaneousexpense
.............................................................$22$26$37AmerenMissouri:Miscellaneousincome:Allowanceforequityfundsusedduringconstruction
.........................................$32$31$31Interestincomeonindustrialdevelopmentrevenuebonds
.....................................
272728Interestincome
......................................................................
1-4 (d)Totalmiscellaneousincome
..............................................................$60$58$63Miscellaneousexpense:
Donations..........................................................................
$6$4$9 Other..............................................................................
6 75Totalmiscellaneousexpense
.............................................................$12$11$14AmerenIllinois:
Miscellaneousincome:Allowanceforequityfundsusedduringconstruction
.........................................
$2$6$5Interestincome
......................................................................
7 (b)2-Other..............................................................................
8 (c)22Totalmiscellaneousincome
..............................................................$17$10$7Miscellaneousexpense:
Donations..........................................................................
$4$4$11 (e)Other..............................................................................
4 56Totalmiscellaneousexpense
.............................................................
$8$9$17(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.
(b)IncludesAmerenIllinois'interestincomereceivedin2014relatingtothe2013and2014IEIMArevenuerequirementreconciliationregulatoryas sets.(c)IncludesAmerenIllinois'incomeearnedin2014fromcustomer-requestedconstruction.
(d)IncludesAmerenMissouri'sinterestincomerelatingtoarefundofchargesincludedinanexpiredpowerpurchaseagreementwithEntergy.SeeNote2-RateandRegulatoryMattersforadditionalinformation.(e)IncludesAmerenIllinois'one-time$7.5millioncontributiontotheIllinoisScienceandEnergyInnovationTrustpursuanttotheIEIMAasaresultofAmerenIllinois'participationintheelectricdeliveryformularatemakingprocess.NOTE7-DERIVATIVEFINANCIALINSTRUMENTSWeusederivativestomanagetheriskofchangesinmarketpricesfornaturalgas,power,anduranium,aswellastheriskofchangesinrailtransportationsurcharges throughfueloilhedges.Suchpricefluctuationsmaycause thefollowing:
anunrealizedappreciationordepreciationofourcontractedcommitmentstopurchaseorsellwhen purchaseorsalepricesunderthecommitmentsare comparedwithcurrentcommodityprices; marketvaluesofnaturalgasanduraniuminventories thatdifferfromthecostofthosecommoditiesin inventory;and actualcashoutlaysforthepurchaseofthese commoditiesthatdifferfromanticipatedcashoutlays.Thederivativesthatweusetohedgetheserisksaregovernedbyourriskmanagementpoliciesforforward contracts,futures,options,andswaps.Ournetpositions arecontinuallyassessedwithinourstructuredhedging programstodeterminewhetherneworoffsetting transactionsarerequired.Thegoalofthehedgingprogram isgenerallytomitigatefinancialriskswhileensuringthat sufficientvolumesareavailabletomeetourrequirements.
Contractsweenterintoaspartofourriskmanagement programmaybesettledfinancially,settledbyphysical delivery,ornetsettledwiththecounterparty.
104 ThefollowingtablepresentsopengrosscommoditycontractvolumesbycommoditytypeforderivativeassetsandliabilitiesasofDecember31,2014and2013.AsofDecember31,2014,thesecontractsranthroughOctober2017,October2019,May2032,andOctober2016forfueloils,naturalgas,power,anduranium,respectively.Quantity(inmillions,exceptasindicated)20142013 Commodity Ameren Missouri AmerenIllinoisAmeren Ameren Missouri AmerenIllinoisAmerenFueloils(ingallons)(a).........................................50(b)5066(b)66Naturalgas(inmmbtu)
........................................2810813628108136Power(inmegawatthours)
......................................1111231114Uranium(poundsinthousands)
.................................332(b)332796(b)796(a)Fueloilsconsistofheatingoil,ultra-low-sulfurdiesel,andcrudeoil.(b)Notapplicable.Authoritativeaccountingguidanceregardingderivativeinstrumentsrequiresthatallcontractsconsideredtobederivativeinstrumentsberecordedonthebalancesheetat theirfairvalues,unlesstheNPNSexceptionapplies.See Note8-FairValueMeasurementsfordiscussionofour methodsofassessingthefairvalueofderivative instruments.Manyofourphysicalcontracts,suchasour purchasedpowercontracts,qualifyfortheNPNSexception toderivativeaccountingrules.Therevenueorexpenseon NPNScontractsisrecognizedatthecontractpriceupon physicaldelivery.IfwedeterminethatacontractmeetsthedefinitionofaderivativeandisnoteligiblefortheNPNSexception,we reviewthecontracttodetermineifitqualifiesforhedge accounting.Wealsoconsiderwhethergainsorlosses resultingfromsuchderivativesqualifyforregulatory deferral.Derivativecontractsthatqualifyforregulatory deferralarerecordedatfairvalue,withchangesinfairvalue recordedasregulatoryassetsorregulatoryliabilitiesintheperiodinwhichthechangeoccurs.Webelievederivative lossesandgainsdeferredasregulatoryassetsand regulatoryliabilitiesareprobableofrecoveryorrefund throughfuturerateschargedtocustomers.Regulatory assetsandregulatoryliabilitiesareamortizedtooperating incomeasrelatedlossesandgainsarereflectedinrates chargedtocustomers.Therefore,gainsandlossesonthese derivativeshavenoeffectonoperatingincome.Asof December31,2014and2013,allcontractsthatqualifyfor hedgeaccountingreceiveregulatorydeferral.Authoritativeaccountingguidancepermitscompaniestooffsetfairvalueamountsrecognizedfortherightto reclaimcashcollateral(areceivable)ortheobligationto returncashcollateral(aliability)againstfairvalueamounts recognizedforderivativeinstrumentsthatareexecutedwith thesamecounterpartyunderamasternettingarrangement.
TheAmerenCompaniesdidnotelecttoadoptthisguidance foranyeligiblecommoditycontracts.
105 Thefollowingtablepresentsthecarryingvalueandbalancesheetlocationofallderivativecommoditycontracts,noneofwhichweredesignatedashedginginstruments,asofDecember31,2014and2013:BalanceSheetLocation Ameren Missouri AmerenIllinoisAmeren 2014Fueloils..............Othercurrentassets
.................................$2$-$2Naturalgas
............Othercurrentassets
.................................112 Power................Othercurrentassets
.................................15-15Totalassets
.......................................$18$1$19Fueloils..............Othercurrentliabilities
...............................$22$-$22Otherdeferredcreditsandliabilities
.....................7-7Naturalgas............MTMderivativeliabilities
.............................(a)31(a)Othercurrentliabilities
...............................6-37Otherdeferredcreditsandliabilities
.....................61319 Power................MTMderivativeliabilities
.............................(a)11(a)Othercurrentliabilities
...............................3-14Otherdeferredcreditsandliabilities
.....................-131131 Uranium..............Othercurrentliabilities
...............................2-2Totalliabilities
....................................$46$186$232 2013Fueloils..............Othercurrentassets.................................$6$-$6Otherassets.......................................3-3Naturalgas
............Othercurrentassets.................................112 Power................Othercurrentassets.................................23-23Totalassets.......................................$33$1$34Fueloils..............Othercurrentliabilities...............................$2$-$2Otherdeferredcreditsandliabilities.....................1-1Naturalgas............MTMderivativeliabilities
.............................(a)27(a)Othercurrentliabilities
...............................
5-32Otherdeferredcreditsandliabilities
.....................
61925 Power................MTMderivativeliabilities
.............................(a)9(a)Othercurrentliabilities
...............................
4-13Otherdeferredcreditsandliabilities
.....................
-9999 Uranium..............Othercurrent liabilities...............................5-5Otherdeferredcreditsandliabilities.....................1-1Totalliabilities....................................$24$154$178(a)Balancesheetlineitemnotapplicabletoregistrant.Thefollowingtablepresentsthecumulativeamountofpretaxnetgains(losses)onallderivativeinstrumentsdeferredinregulatoryassetsorregulatoryliabilitiesasofDecember31,2014and2013:
Ameren Missouri AmerenIllinoisAmeren 2014Fueloilsderivativecontracts (a)..............................................................$(29)$-$(29)Naturalgasderivativecontracts (b)............................................................(11)(43)(54)Powerderivativecontracts (c)................................................................12(142)(130)Uraniumderivativecontracts (d)..............................................................(2)-(2)2013Fueloilsderivativecontracts................................................................$2$-$2Naturalgasderivativecontracts
.............................................................(10)(45)(55)Powerderivativecontracts.................................................................19(108)(89)Uraniumderivativecontracts................................................................(6)-(6)(a)RepresentsnetlossesassociatedwithfueloilsderivativecontractsatAmerenMissouri.ThesecontractsareapartialhedgeofAmerenMissouri'srailtransportationsurchargesforcoalthroughDecember2017.Currentlossesdeferredasregulatoryassetsinclude$21millionand$21millionatAmerenandAmerenMissouri,respectively.
106 (b)Representsnetlossesassociatedwithnaturalgasderivativecontracts.ThesecontractsareapartialhedgeofnaturalgasrequirementsthroughOctober2019atAmerenandAmerenMissouriandthroughOctober2018atAmerenIllinois.Currentgainsdeferredasregulatoryliabilitiesinclude$2million,$1million,and$1millionatAmeren,AmerenMissouri,andAmerenIllinois,respectively.Currentlossesdeferredas regulatoryassetsinclude$37million,$6million,and$31millionatAmeren,AmerenMissouri,andAmerenIllinois,respectively.(c)Representsnetgains(losses)associatedwithpowerderivativecontracts.ThesecontractsareapartialhedgeofpowerpricerequirementsthroughMay2032atAmerenandAmerenIllinoisandthroughDecember2015atAmerenMissouri.Currentgainsdeferredasregulatory liabilitiesinclude$15millionand$15millionatAmerenandAmerenMissouri,respectively.Currentlossesdeferredasregulatoryassets include$14million,$3million,and$11millionatAmeren,AmerenMissouri,andAmerenIllinois,respectively.(d)RepresentsnetlossesassociatedwithuraniumderivativecontractsatAmerenMissouri.ThesecontractsareapartialhedgeofAmerenMissouri'suraniumrequirementsthroughDecember2016.Currentlossesdeferredasregulatoryassetsinclude$2millionand$2millionat AmerenandAmerenMissouri,respectively.Derivativeinstrumentsaresubjecttovariouscredit-relatedlossesintheeventofnonperformancebycounterpartiestothetransaction.Exchange-tradedcontractsaresupportedbythefinancialandcreditqualityoftheclearingmembersoftherespectiveexchangesandhavenominalcreditrisk.Inallothertransactions,weareexposedtocreditrisk.Ourcreditrisk managementprograminvolvesestablishingcreditlimitsandcollateralrequirementsforcounterparties,usingmasternetting arrangements,andreportingdailyexposuretoseniormanagement.Webelievethatenteringintomasternettingarrangementsmitigatestheleveloffinanciallossthatcouldresultfromdefaultbyallowingnetsettlementofderivativeassetsandliabilities.Wegenerallyenterintothefollowingmasternetting arrangements:(1)theInternationalSwapsandDerivativesAssociationAgreement,astandardizedfinancialnaturalgasand electriccontract;(2)theMasterPowerPurchaseandSaleAgreement,createdbytheEdisonElectricInstituteandtheNational EnergyMarketersAssociation,astandardizedcontractforthepurchaseandsaleofwholesalepower;and(3)theNorth AmericanEnergyStandardsBoardInc.Agreement,astandardizedcontractforthepurchaseandsaleofnaturalgas.These masternettingarrangementsallowthecounterpartiestonetsettlesaleandpurchasetransactions.Further,collateral requirementsarecalculatedatthemasternettingarrangementlevelbycounterparty.ThefollowingtableprovidestherecognizedgrossderivativebalancesandthenetamountsofthosederivativessubjecttoanenforceablemasternettingarrangementorsimilaragreementasofDecember31,2014and2013:GrossAmountsNotOffsetontheBalanceSheetCommodityContractsEligibletobeOffsetGrossAmountsRecognizedontheBalanceSheet Derivative InstrumentsCashCollateral Received/Posted (a)Net Amount 2014 Assets:
AmerenMissouri
..............................................$18$5$-$13AmerenIllinois
................................................1--1 Ameren.....................................................$19$5$-$14 Liabilities:
AmerenMissouri
..............................................$46$5$5$36AmerenIllinois
................................................186--186 Ameren.....................................................$232$5$5$222 2013 Assets:
AmerenMissouri..............................................$33$9$-$24AmerenIllinois................................................11--
Ameren.....................................................$34$10$-$24 Liabilities:
AmerenMissouri..............................................$24$9$9$6AmerenIllinois................................................154115138 Ameren.....................................................$178$10$24$144(a)Cashcollateralreceivedreducesgrossassetbalancesandisincludedin"Othercurrentliabilities"and"Otherdeferredcreditsandliabilities"onthebalancesheet.Cashcollateralpostedreducesgrossliabilitybalancesandisincludedin"Othercurrentassets"and"Otherassets"onthe balancesheet.
107 ConcentrationsofCreditRiskIndeterminingourconcentrationsofcreditriskrelatedtoderivativeinstruments,wereviewourindividualcounterpartiesandcategorizeeachcounterpartyintogroupingsaccordingtotheprimarybusinessinwhicheachengages.Wecalculatemaximumexposuresbasedonthegrossfairvalueoffinancialinstruments,includingNPNSandotheraccrualcontracts.Asof December31,2014,ifcounterpartygroupsweretofailcompletelytoperformoncontracts,Ameren,AmerenMissouri,and AmerenIllinois'maximumexposurewas$5million,$5million,and$-million,respectively.Thepotentiallossoncounterparty exposuresisreducedbytheapplicationofmasternettingarrangementsandcollateralheld,totheextentofreducingthe exposuretozero.AsofDecember31,2014,thepotentiallossafterconsiderationoftheapplicationofmasternetting arrangementsandcollateralheldforAmeren,AmerenMissouri,andAmerenIllinoiswas$5million,$5million,and$-million, respectively.DerivativeInstrumentswithCreditRisk-RelatedContingentFeaturesOurcommoditycontractscontaincollateralprovisionstiedtotheAmerenCompanies'creditratings.Ifweweretoexperienceanadversechangeinourcreditratings,orifacounterpartywithreasonablegroundsforuncertaintyregardingperformanceofanobligationrequestedadequateassuranceofperformance,additionalcollateralpostingsmightberequired.Thefollowingtablepresents,asofDecember31,2014,theaggregatefairvalueofallderivativeinstrumentswithcreditrisk-relatedcontingentfeaturesinagrossliabilityposition,thecashcollateralposted,andtheaggregateamountofadditional collateralthatcouldberequiredtobepostedwithcounterparties.Theadditionalcollateralrequiredisthenetliabilitypositionallowedunderthemasternettingarrangementsassuming(1)thecreditrisk-relatedcontingentfeaturesunderlyingthese arrangementsweretriggeredonDecember31,2014,and(2)thosecounterpartieswithrightstodosorequestedcollateral.AggregateFairValueofDerivativeLiabilities (a)CashCollateralPostedPotentialAggregateAmountofAdditionalCollateralRequired (b)AmerenMissouri
.....................................$96$4$88AmerenIllinois
.......................................74-71 Ameren.............................................$170$4$159(a)PriortoconsiderationofmasternettingarrangementsandincludingNPNSandotheraccrualcontractexposures.(b)Ascollateralrequirementswithcertaincounterpartiesarebasedonmasternettingarrangements,theaggregateamountofadditionalcollateralrequiredtobepostedisdeterminedafterconsiderationoftheeffectsofsucharrangements.NOTE8-FAIRVALUEMEASUREMENTSFairvalueisdefinedastheexchangepricethatwouldbereceivedforanassetorpaidtotransferaliability(anexitprice)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.Level1assetsand liabilitiesareprimarilyexchange-tradedderivativesand assets,includingcashandcashequivalentsandlisted equitysecurities,suchasthoseheldinAmerenMissouri's nucleardecommissioningtrustfund.ThemarketapproachisusedtomeasurethefairvalueofequitysecuritiesheldinAmerenMissouri'snuclear decommissioningtrustfund.Equitysecuritiesinthisfund arerepresentativeoftheS&P500index,excluding securitiesofAmerenCorporation,ownersand/oroperators ofnuclearpowerplantsandthetrusteeandinvestment managers.TheS&P500indexcomprisesstocksoflarge-capitalizationcompanies.Level2:Market-basedinputscorroboratedbythird-partybrokersorexchangesbasedontransactedmarket data.Level2assetsandliabilitiesincludecertainassets heldinAmerenMissouri'snucleardecommissioningtrust fund,includingcorporatebondsandotherfixed-income securities,UnitedStatesTreasuryandagencysecurities, andcertainover-the-counterderivativeinstruments, includingnaturalgasandfinancialpowertransactions.Fixedincomesecuritiesarevaluedusingpricesfromindependentindustryrecognizeddatavendorswhoprovide valuesthatareeitherexchange-basedormatrix-based.The fairvaluemeasurementsoffixedincomesecurities classifiedasLevel2arebasedoninputsotherthanquoted pricesthatareobservablefortheassetorliability.Examples arematrixpricing,marketcorroboratedpricing,andinputs suchasyieldcurvesandindices.Level2fixedincome securitiesinthenucleardecommissioningtrustfundare primarilycorporatebonds,asset-backedsecuritiesand UnitedStatesagencybonds.
108 DerivativeinstrumentsclassifiedasLevel2arevaluedbycorroboratedobservableinputs,suchaspricingservicesorpricesfromsimilarinstrumentsthattradeinliquid markets.Ourdevelopmentandcorroborationprocess entailsobtainingmultiplequotesorpricesfromoutside sources.Toderiveourforwardviewtopriceourderivative instrumentsatfairvalue,weaveragethemidpointsofthe bid/askspreads.Tovalidateforwardpricesobtainedfrom outsideparties,wecomparethepricingtorecentlysettled markettransactions.Additionally,areviewofallsourcesis performedtoidentifyanyanomaliesorpotentialerrors.
Further,weconsiderthevolumeoftransactionsoncertain tradingplatformsinourreasonablenessassessmentofthe averagedmidpoint.Naturalgasderivativecontractsare valuedbaseduponexchangeclosingpriceswithout significantunobservableadjustments.Powerderivatives contractsarevaluedbasedupontheuseofmultipleforward pricesprovidedbythirdparties.Thepricesareaveraged andshapedtoamonthlyprofilewhenneededwithout significantunobservableadjustments.Level3:Unobservableinputsthatarenotcorroboratedbymarketdata.Level3assetsandliabilitiesarevaluedby internallydevelopedmodelsandassumptionsor methodologiesthatusesignificantunobservableinputs.
Level3assetsandliabilitiesincludederivativeinstruments thattradeinlessliquidmarkets,wherepricingislargely unobservable.WevalueLevel3instrumentsbyusing pricingmodelswithinputsthatareoftenunobservablein themarket,aswellascertaininternalassumptions.Our developmentandcorroborationprocessentailsobtaining multiplequotesorpricesfromoutsidesources.Asapartof ourreasonablenessreview,anevaluationofallsourcesis performedtoidentifyanyanomaliesorpotentialerrors.Weperformananalysiseachquartertodeterminetheappropriatehierarchyleveloftheassetsandliabilities subjecttofairvaluemeasurements.Financialassetsand liabilitiesareclassifiedintheirentiretyaccordingtothe lowestlevelofinputthatissignificanttothefairvalue measurement.Allassetsandliabilitieswhosefairvalue measurementisbasedonsignificantunobservableinputs areclassifiedasLevel3.ThefollowingtabledescribesthevaluationtechniquesandunobservableinputsforthefairvalueoffinancialassetsandliabilitiesclassifiedasLevel3inthefairvaluehierarchyfortheperiodendedDecember31,2014:FairValue Weighted AverageAssetsLiabilitiesValuationTechnique(s)UnobservableInputRangeLevel3Derivativeassetandliability-commoditycontracts (a):AmerenFueloils$2$(8)OptionmodelVolatilities(%)(b)3-39 32DiscountedcashflowAmerenMissouricreditrisk(%)(b)(c)0.43 (d)Escalationrate(%)(e)(f)5 (d)NaturalGas1(2)OptionmodelVolatilities(%)(b)31-144 63Nodalbasis($/mmbtu)(e)(0.40)-0(0.20)DiscountedcashflowNodalbasis($/mmbtu)(e)(0.40)-0.10(0.20)Counterpartycreditrisk(%)(b)(c)0.43-13 3AmerenMissouriandAmerenIllinoiscreditrisk(%)(b)(c)0.43 (d)Power (g)11(144)DiscountedcashflowAverageforwardpeakandoff-peak pricing-forwards/swaps($/MWh)(h)27-50 32Estimatedauctionpricefor
FTRs($/MW)(e)(1,833)-2,743171Nodalbasis($/MWh)(e)(6)-0 (2)Counterpartycreditrisk(%)(b)(c)0.26 (d)AmerenMissouriandAmerenIllinois creditrisk(%)(b)(c)0.43 (d)Fundamentalenergyproduction
modelEstimatedfuturegas
prices($/mmbtu)(e)4-5 4Escalationrate(%)(e)(i)0-1 1ContractpriceallocationEstimatedrenewableenergycredit costs($/credit)(e)5-7 6Uranium-(2)DiscountedcashflowAverageforwarduranium
pricing($/pound)(e)35-40 36 109 FairValue Weighted AverageAssetsLiabilitiesValuationTechnique(s)UnobservableInputRange Ameren MissouriFueloils$2$(8)OptionmodelVolatilities(%)(b)3-39 32DiscountedcashflowAmerenMissouricreditrisk(%)(b)(c)0.43 (d)Escalationrate(%)(e)(f)5 (d)NaturalGas-(1)OptionmodelVolatilities(%)(b)31-144 53Nodalbasis($/mmbtu)(e)(0.40)-0(0.30)DiscountedcashflowNodalbasis($/mmbtu)(e)(0.10)(d)Counterpartycreditrisk(%)(b)(c)0.57-13 5AmerenMissouricreditrisk(%)(b)(c)0.43 (d)Power (g)11(2)DiscountedcashflowAverageforwardpeakandoff-peak pricing-forwards/swaps($/MWh)(b)27-50 32Estimatedauctionpricefor
FTRs($/MW)(e)(1,833)-2,743171Counterpartycreditrisk(%)(b)(c)0.26 (d)AmerenMissouricreditrisk(%)(b)(c)0.43 (d)Uranium-(2)DiscountedcashflowAverageforwarduranium pricing($/pound)(e)35-40 36 Ameren IllinoisNaturalGas$1$(1)Optionmodel Volatilities(%)(b)50-144 94Nodalbasis($/mmbtu)(e)(0.10)-0(0.10)DiscountedcashflowNodalbasis($/mmbtu)(e)(0.40)-0.10(0.20)Counterpartycreditrisk(%)(b)(c)0.43-2 0.83AmerenIllinoiscreditrisk(%)(b)(c)0.43 (d)Power (g)-(142)DiscountedcashflowAverageforwardpeakandoff-peak pricing-forwards/swaps($/MWh)(e)27-38 32Nodalbasis($/MWh)(e)(6)-0 (2)AmerenIllinoiscreditrisk(%)(b)(c)0.43 (d)Fundamentalenergyproduction
modelEstimatedfuturegas
prices($/mmbtu)(e)4-5 4Escalationrate(%)(e)(i)0-1 1ContractpriceallocationEstimatedrenewableenergycredit costs($/credit)(e)5-7 6(a)Thederivativeassetandliabilitybalancesarepresentednetofcounterpartycreditconsiderations.
(b)Generally,significantincreases(decreases)inthisinputinisolationwouldresultinasignificantlylower(higher)fairvaluemeasurement.
(c)Counterpartycreditriskisappliedonlytocounterpartieswithderivativeassetbalances.AmerenMissouriandAmerenIllinoiscreditriskisappliedonlytocounterpartieswithderivativeliabilitybalances.(d)Notapplicable.
(e)Generally,significantincreases(decreases)inthisinputinisolationwouldresultinasignificantlyhigher(lower)fairvaluemeasurement.
(f)Escalationrateappliestofueloilprices2017andbeyond.
(g)Powervaluationsusevisiblethird-partypricingevaluatedbymonthforpeakandoff-peakdemandthrough2018.Valuationsbeyond2018usefundamentallymodeledpricingbymonthforpeakandoff-peakdemand.(h)ThebalanceatAmereniscomprisedofAmerenMissouriandAmerenIllinoispowercontracts,whichresponddifferentlytounobservableinputchangesduetotheiropposingpositions.Assuch,refertothepowersensitivityanalysisforeachcompanyabove.(i)Escalationrateappliestopowerprices2026andbeyond.
110 ThefollowingtabledescribesthevaluationtechniquesandunobservableinputsforthefairvalueoffinancialassetsandliabilitiesclassifiedasLevel3inthefairvaluehierarchyasofDecember31,2013:FairValue Weighted AverageAssetsLiabilitiesValuationTechniqueUnobservableInputRangeLevel3Derivativeassetandliability-commoditycontracts (a):AmerenFueloils$8$(3)OptionmodelVolatilities(%)(b)10-3516DiscountedcashflowCounterpartycreditrisk(%)(c)(d)0.26-21 Power (e)21(110)DiscountedcashflowAverageforwardpeakandoff-peakpricing-forwards/swaps($/MWh)(c)25-5132Estimatedauctionpricefor FTRs($/MW)(b)(1,594)-945305Nodalbasis($/MWh)(c)(3)-(1)(2)Counterpartycreditrisk(%)(c)(d)0.39-0.500.42AmerenMissouriandAmerenIllinois creditrisk(%)(c)(d)2 (f)Fundamentalenergyproduction
modelEstimatedfuturegasprices($/mmbtu)(b)4-5 5Escalationrate(%)(b)(g)3-4 4ContractpriceallocationEstimatedrenewableenergycredit costs($/credit)(b)5-7 6Uranium-(6)DiscountedcashflowAverageforwarduranium
pricing($/pound)(b)34-4136 Ameren MissouriFueloils$8$(3)OptionmodelVolatilities(%)(b)10-3516DiscountedcashflowCounterpartycreditrisk(%)(c)(d)0.26-21 Power (e)21(2)DiscountedcashflowAverageforwardpeakandoff-peak pricing-forwards/swaps($/MWh)(c)25-5140Estimatedauctionpricefor
FTRs($/MW)(b)(1,594)-945305Nodalbasis($/MWh)(c)(3)-(1)(2)Counterpartycreditrisk(%)(c)(d)0.39-0.500.42AmerenMissouricreditrisk(%)(c)(d)2 (f)Uranium-(6)DiscountedcashflowAverageforwarduranium
pricing($/pound)(b)34-4136 Ameren Illinois Power (e)$-$(108)DiscountedcashflowAverageforwardpeakandoff-peak pricing-forwards/swaps($/MWh)(b)27-3630Nodalbasis($/MWh)(b)(4)-0 (2)AmerenIllinoiscreditrisk(%)(c)(d)2 (f)Fundamentalenergyproduction
modelEstimatedfuturegasprices($/mmbtu)(b)4-5 5Escalationrate(%)(b)(g)3-4 4ContractpriceallocationEstimatedrenewableenergycredit costs($/credit)(b)5-7 6(a)Thederivativeassetandliabilitybalancesarepresentednetofcounterpartycreditconsiderations.
(b)Generally,significantincreases(decreases)inthisinputinisolationwouldresultinasignificantlyhigher(lower)fairvaluemeasurement.
(c)Generally,significantincreases(decreases)inthisinputinisolationwouldresultinasignificantlylower(higher)fairvaluemeasurement.
(d)Counterpartycreditriskisappliedonlytocounterpartieswithderivativeassetbalances.AmerenMissouriandAmerenIllinoiscreditriskisappliedonlytocounterpartieswithderivativeliabilitybalances.(e)Powervaluationsusevisiblethird-partypricingevaluatedbymonthforpeakandoff-peakdemandthrough2017.Valuationsbeyond2017usefundamentallymodeledpricingbymonthforpeakandoff-peakdemand.(f)Notapplicable.
(g)Escalationrateappliestopowerprices2026andbeyond.Inaccordancewithapplicableauthoritativeaccountingguidance,weconsidernonperformanceriskinourvaluationofderivativeinstrumentsbyanalyzingthecreditstandingof ourcounterpartiesandconsideringanycounterpartycredit enhancements(e.g.,collateral).Theguidancealsorequires thatthefairvaluemeasurementofliabilitiesreflectthe nonperformanceriskofthereportingentity,asapplicable.
Therefore,wehavefactoredtheimpactofourcreditstanding,aswellasanypotentialcreditenhancements,into thefairvaluemeasurementofbothderivativeassetsand derivativeliabilities.Includedinourvaluation,andbasedon currentmarketconditions,isavaluationadjustmentfor counterpartydefaultderivedfrommarketdatasuchasthe priceofcreditdefaultswaps,bondyields,andcredit ratings.Nogainsorlossesrelatedtovaluationadjustments forcounterpartydefaultriskwererecordedatAmeren, 111 AmerenMissouri,orAmerenIllinoisin2014,2013or2012.AtDecember31,2014,thecounterpartydefaultriskliability valuationadjustmentrelatedtoderivativecontractstotaled
$1million,lessthan$1million,and$1million,forAmeren, AmerenMissouri,andAmerenIllinois,respectively.AtDecember31,2013,thecounterpartydefaultriskliability valuationadjustmentrelatedtoderivativecontractstotaled
$3million,lessthan$1million,and$3millionforAmeren, AmerenMissouri,andAmerenIllinois,respectively.Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchy,ourassetsandliabilitiesmeasuredatfairvalueonarecurringbasisasofDecember31,2014:QuotedPricesinActiveMarketsforIdenticalAssetsorLiabilities(Level1)SignificantOtherObservableInputs(Level2)Significant Other Unobservable Inputs(Level3)Total Assets:AmerenDerivativeassets-commoditycontracts (a):Fueloils.................................$-$-$2$2Naturalgas...............................-112 Power...................................-41115Totalderivativeassets-commoditycontracts........$-$5$14$19Nucleardecommissioningtrustfund:Cashandcashequivalents...................$1$-$-$1Equitysecurities:U.S.largecapitalization.................364--364Debtsecurities:Corporatebonds.......................-63-63Municipalbonds.......................-2-2U.S.treasuryandagencysecurities........-102-102Asset-backedsecurities.................-10-10 Other................................-5-5Totalnucleardecommissioningtrustfund...........$365$182$-$547 (b)TotalAmeren.................................$365$187$14$566 Ameren MissouriDerivativeassets-commoditycontracts (a):Fueloils.................................$-$-$2$2Naturalgas...............................-1-1 Power...................................-41115Totalderivativeassets-commoditycontracts........$-$5$13$18Nucleardecommissioningtrustfund:Cashandcashequivalents...................$1$-$-$1Equitysecurities:U.S.largecapitalization.................364--364Debtsecurities:Corporatebonds.......................-63-63Municipalbonds.......................-2-2U.S.treasuryandagencysecurities........-102-102Asset-backedsecurities.................-10-10 Other................................-5-5Totalnucleardecommissioningtrustfund...........$365$182$-$547 (b)TotalAmerenMissouri..........................$365$187$13$565 Ameren IllinoisDerivativeassets-commoditycontracts (a):Naturalgas...............................$-$-$1$1 Liabilities:
AmerenDerivativeliabilities-commoditycontracts (a):Fueloils.................................$21$-$8$29Naturalgas...............................153256 Power...................................-1144145 Uranium.................................--22TotalAmeren.................................$22$54$156$232 Ameren MissouriDerivativeliabilities-commoditycontracts (a):Fueloils.................................$21$-$8$29Naturalgas...............................110112 Power...................................-123 Uranium.................................--22TotalAmerenMissouri..........................$22$11$13$46 Ameren IllinoisDerivativeliabilities-commoditycontracts (a):Naturalgas...............................$-$43$1$44 Power...................................--142142TotalAmerenIllinois............................$-$43$143$186(a)Thederivativeassetandliabilitybalancesarepresentednetofcounterpartycreditconsiderations.(b)Balanceexcludes$2millionofreceivables,payables,andaccruedincome,net.
112 Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchy,ourassetsandliabilitiesmeasuredatfairvalueonarecurringbasisasofDecember31,2013:QuotedPricesinActiveMarketsforIdenticalAssetsorLiabilities(Level1)SignificantOtherObservableInputs(Level2)Significant Other Unobservable Inputs(Level3)Total Assets:AmerenDerivativeassets-commoditycontracts (a):Fueloils................................$1$-$8$9Naturalgas..............................-2-2 Power..................................-22123Totalderivativeassets-commoditycontracts.......$1$4$29$34Nucleardecommissioningtrustfund:Cashandcashequivalents..................$3$-$-$3Equitysecurities:U.S.largecapitalization................332--332Debtsecurities:Corporatebonds......................-52-52Municipalbonds......................-2-2U.S.treasuryandagencysecurities.......-94-94Asset-backedsecurities................-10-10 Other...............................-1-1Totalnucleardecommissioningtrustfund..........$335$159$-$494TotalAmeren................................$336$163$29$528 Ameren MissouriDerivativeassets-commoditycontracts (a):Fueloils................................$1$-$8$9Naturalgas..............................-1-1 Power..................................-22123Totalderivativeassets-commoditycontracts.......$1$3$29$33Nucleardecommissioningtrustfund:Cashandcashequivalents..................$3$-$-$3Equitysecurities:U.S.largecapitalization................332--332Debtsecurities:Corporatebonds......................-52-52Municipalbonds......................-2-2U.S.treasuryandagencysecurities.......-94-94Asset-backedsecurities................-10-10 Other...............................-1-1Totalnucleardecommissioningtrustfund..........$335$159$-$494TotalAmerenMissouri.........................$336$162$29$527 Ameren IllinoisDerivativeassets-commoditycontracts (a):Naturalgas..............................$-$1$-$1 Liabilities:
AmerenDerivativeliabilities-commoditycontracts (a):Fueloils................................$-$-$3$3Naturalgas..............................354-57 Power..................................-2110112 Uranium................................--66TotalAmeren................................$3$56$119$178 Ameren MissouriDerivativeliabilities-commoditycontracts (a):Fueloils................................$-$-$3$3Naturalgas..............................38-11 Power..................................-224 Uranium................................--66TotalAmerenMissouri.........................$3$10$11$24 Ameren IllinoisDerivativeliabilities-commoditycontracts (a):Naturalgas..............................$-$46$-$46 Power..................................--108108TotalAmerenIllinois...........................$-$46$108$154(a)Thederivativeassetandliabilitybalancesarepresentednetofcounterpartycreditconsiderations.
113 ThefollowingtablesummarizesthechangesinthefairvalueoffinancialassetsandliabilitiesclassifiedasLevel3inthefairvaluehierarchyfortheyearendedDecember31,2014:NetDerivativeCommodityContracts Ameren Missouri AmerenIllinoisAmerenFueloils:BeginningbalanceatJanuary1,2014......................................................$5$(a)$5Realizedandunrealizedgains(losses)includedinregulatoryassets/liabilities:.....................(9)(a)(9)
Settlements........................................................................(2)(a)(2)EndingbalanceatDecember31,2014......................................................$(6)$(a)$(6)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2014.............$(6)$(a)$(6)Naturalgas:
BeginningbalanceatJanuary1,2014......................................................$-$-$-Realizedandunrealizedgains(losses)includedinregulatoryassets/liabilities:.....................-11 Purchases.........................................................................-(2)(2)
Sales.............................................................................(1)-(1)
Settlements........................................................................-1 1EndingbalanceatDecember31,2014......................................................$(1)$-$(1)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2014.............$-$2$2 Power:
BeginningbalanceatJanuary1,2014......................................................$19$(108)$(89)Realizedandunrealizedgains(losses)includedinregulatoryassets/liabilities:
.....................(14)(39)(53)
Purchases.........................................................................34-34 Sales.............................................................................(1)-(1)
Settlements
........................................................................(29)5(24)EndingbalanceatDecember31,2014......................................................$9$(142)$(133)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2014.............$-$(43)$(43)Uranium:
BeginningbalanceatJanuary1,2014......................................................$(6)$(a)$(6)Realizedandunrealizedgains(losses)includedinregulatoryassets/liabilities:.....................(1)(a)(1)
Settlements........................................................................5(a)5EndingbalanceatDecember31,2014......................................................$(2)$(a)$(2)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2014.............$(1)$(a)$(1)(a)Notapplicable.ThefollowingtablesummarizesthechangesinthefairvalueoffinancialassetsandliabilitiesclassifiedasLevel3inthefairvaluehierarchyfortheyearendedDecember31,2013:NetDerivativeCommodityContracts Ameren Missouri AmerenIllinoisAmerenFueloils:
BeginningbalanceatJanuary1,2013.......................................................$5$(a)$5 Purchases..........................................................................3(a)3 Sales..............................................................................(1)(a)(1)
Settlements.........................................................................(2)(a)(2)EndingbalanceatDecember31,2013......................................................$5$(a)$5Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2013..............$-$(a)$-Naturalgas:
BeginningbalanceatJanuary1,2013.......................................................$-$-$-Realizedandunrealizedgains(losses)includedinregulatoryassets/liabilities:.....................-(1)(1)
Purchases..........................................................................-11EndingbalanceatDecember31,2013......................................................$-$-$-Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2013..............$-$-$-
Power:
BeginningbalanceatJanuary1,2013.......................................................$11$(111)$(100)Realizedandunrealizedgains(losses)includedinregulatoryassets/liabilities:.....................3(18)(15)Purchases..........................................................................40-40 Settlements
.........................................................................(36)21(15)TransfersintoLevel3.................................................................(3)-(3)TransfersoutofLevel3................................................................4-4EndingbalanceatDecember31,2013......................................................$19$(108)$(89)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2013..............$(1)$(24)$(25)Uranium:
BeginningbalanceatJanuary1,2013.......................................................$(2)$(a)$(2)Realizedandunrealizedgains(losses)includedinregulatoryassets/liabilities:.....................(3)(a)(3)
Purchases..........................................................................(2)(a)(2)
Settlements.........................................................................1(a)1EndingbalanceatDecember31,2013......................................................$(6)$(a)$(6)Changeinunrealizedgains(losses)relatedtoassets/liabilitiesheldatDecember31,2013..............$(2)$(a)$(2)(a)Notapplicable.
114 TransfersinoroutofLevel3representeither(1)existingassetsandliabilitiesthatwerepreviouslycategorizedasahigherlevel,butwererecategorizedtoLevel3becausetheinputstothemodelbecameunobservableduringtheperiodor(2)existingassetsandliabilitiesthatwerepreviouslyclassifiedasLevel3,butwererecategorizedtoahigherlevelbecausethe lowestsignificantinputbecameobservableduringtheperiod.TransfersbetweenLevel2andLevel3forpowerderivativeswereprimarilycausedbychangesinavailabilityoffinancialtradesobservableonelectronicexchangesbetweentheperiods.
AnyreclassificationsarereportedastransfersoutofLevel3atthefairvaluemeasurementreportedatthebeginningofthe periodinwhichthechangesoccur.FortheyearsendedDecember31,2014and2013,therewerenotransfersbetweenLevel 1andLevel2relatedtoderivativecommoditycontracts.FortheyearendedDecember31,2014,therewerenotransfers betweenLevel2andLevel3relatedtoderivativecommoditycontracts.FortheyearendedDecember31,2013,therewere
$(3)millionoftransfersoutofLevel2intoLevel3and$4millionoftransfersintoLevel2outofLevel3relatedtopower contractsatAmerenandAmerenMissouri.SeeNote11-RetirementBenefitsforthefairvaluehierarchytablesdetailingAmeren'spensionandpostretirementplanassetsasofDecember31,2014,aswellasatablesummarizingthechangesinLevel3planassetsduring2014.TheAmerenCompanies'carryingamountsofcashandcashequivalentsapproximatefairvaluebecauseoftheshort-termnatureoftheseinstruments.TheyareconsideredtobeLevel1inthefairvaluehierarchy.Ameren'sandAmerenMissouri's carryingamountsofinvestmentsindebtsecuritiesrelatedtothetwoCTsfromthecityofBowlingGreenandAudrainCounty approximatefairvalue.Theseinvestmentsareclassifiedasheld-to-maturity.TheseinvestmentsareconsideredLevel2inthe fairvaluehierarchy,astheyarevaluedbasedonsimilarmarkettransactions.TheAmerenCompanies'short-termborrowings alsoapproximatefairvaluebecauseoftheirshort-termnature.Short-termborrowingsareconsideredtobeLevel2inthefair valuehierarchy,astheyarevaluedbasedonmarketratesforsimilarmarkettransactions.Theestimatedfairvalueoflong-term debtandpreferredstockisbasedonthequotedmarketpricesforsameorsimilarissuancesforcompanieswithsimilarcredit profilesoronthecurrentratesofferedtotheAmerenCompaniesforsimilarfinancialinstruments,whichfairvalue measurementisconsideredLevel2inthefairvaluehierarchy.Thefollowingtablepresentsthecarryingamountsandestimatedfairvaluesofourlong-termdebtandpreferredstockatDecember31,2014and2013:
2014 2013CarryingAmountFairValueCarryingAmountFairValue Ameren: (a)Long-termdebtandcapitalleaseobligations(includingcurrentportion)
.....$6,240$7,135$6,038$6,584Preferredstock
.................................................142122142118AmerenMissouri:Long-termdebtandcapitalleaseobligations(includingcurrentportion)
.....$3,999$4,518$3,757$4,124Preferredstock
.................................................80738071AmerenIllinois:
Long-termdebt(includingcurrentportion)
............................$2,241$2,517$1,856$2,028Preferredstock
.................................................62496247(a)Preferredstockisrecordedin"NoncontrollingInterests"ontheconsolidatedbalancesheet.NOTE9-NUCLEARDECOMMISSIONINGTRUSTFUND INVESTMENTSAmerenMissourihasinvestmentsindebtandequitysecuritiesthatareheldinatrustfundforthepurposeoffundingthedecommissioningofitsCallawayenergycenter.
Wehaveclassifiedtheseinvestmentsasavailableforsale, andwehaverecordedallsuchinvestmentsattheirfair marketvalueatDecember31,2014,and2013.See Note10-CallawayEnergyCenterforadditional
information.Investmentsinthenucleardecommissioningtrustfundhaveatargetallocationof60%to70%inequity securities,withthebalanceinvestedindebtsecurities.ThefollowingtablepresentsproceedsfromthesaleandmaturitiesofinvestmentsinAmerenMissouri'snuclear decommissioningtrustfundandthegrossrealizedgainsandlossesresultingfromthosesalesfortheyearsended December31,2014,2013,and2012:201420132012Proceedsfromsalesand maturities
.................$391$196$384Grossrealizedgains
...........
7 76Grossrealizedlosses
..........
2 52Netrealizedandunrealizedgainsandlossesaredeferredandrecordedasregulatoryassetsorregulatory liabilitiesonAmeren'sandAmerenMissouri'sbalance sheets.Thisreportingisconsistentwiththemethodusedto accountforthedecommissioningcostsrecoveredinrates.
Gainsorlossesassociatedwithassetsinthetrustfund couldresultinlowerorhigherfundingrequirementsfor decommissioningcosts,whichareexpectedtobereflected inelectricratespaidbyAmerenMissouri'scustomers.See Note2-RateandRegulatoryMatters.
115 ThefollowingtablepresentsthecostsandfairvaluesofinvestmentsindebtandequitysecuritiesinAmerenMissouri'snucleardecommissioningtrustfundatDecember31,2014and2013:SecurityTypeCostGrossUnrealizedGainGrossUnrealizedLossFairValue 2014Debtsecurities
....................................$175$7$(a)$182Equitysecurities
..................................
138 230 4 364 Cash...........................................1--1 Other (b).........................................2--2 Total...........................................$316$237$4$549 2013 Debtsecurities....................................$157$4$2$159Equitysecurities..................................1371994332 Cash...........................................3--3 Other (b).........................................(a)
--(a)Total...........................................$297$203$6$494(a)Amountlessthan$1million.(b)Representspayablesrelatingtopendingsecuritypurchases,netofreceivablesrelatedtopendingsecuritysalesandinterestreceivables.ThefollowingtablepresentsthecostsandfairvaluesofinvestmentsindebtsecuritiesinAmerenMissouri'snucleardecommissioningtrustfundaccordingtotheircontractualmaturitiesatDecember31,2014:
Cost Fair ValueLessthan5years......................................................................................$98$995yearsto10years.....................................................................................4142Dueafter10years......................................................................................3641 Total................................................................................................$175$182Wehaveunrealizedlossesrelatingtocertainavailable-for-saleinvestmentsincludedinourdecommissioningtrustfund,recordedasregulatoryassetsasdiscussedabove.Decommissioningwillnotoccuruntiltheoperatinglicenseforournuclearenergycenterexpires.AmerenMissourisubmittedalicenseextensionapplicationtotheNRCtoextendtheCallawayenergy center'soperatinglicenseto2044.Thefollowingtablepresentsthefairvalueandthegrossunrealizedlossesoftheavailable-for-salesecuritiesheldinAmerenMissouri'snucleardecommissioningtrustfund.Theyareaggregatedbyinvestmentcategoryand thelengthoftimethatindividualsecuritieshavebeeninacontinuousunrealizedlosspositionatDecember31,2014:Lessthan12Months12MonthsorGreater TotalFairValue Gross UnrealizedLossesFairValue Gross UnrealizedLossesFairValue Gross Unrealized LossesDebtsecurities.....................................$28$(a)$8$(a)$36$(a)Equitysecurities....................................6153114 Total.............................................$34$1$13$3$47$4(a)Amountlessthan$1million.NOTE10-CALLAWAYENERGYCENTERUndertheNWPA,theDOEisresponsiblefordisposingofspentnuclearfuelfromtheCallawayenergycenterand othercommercialnuclearenergycenters.UndertheNWPA, Amerenandotherutilitiesthatownandoperatethose energycentersareresponsibleforpayingthedisposal costs.TheNWPAestablishedthefeethattheseutilitiespay thefederalgovernmentfordisposingofthespentnuclear fuelatonemill,orone-tenthofonecent,foreach kilowatthourgeneratedandsoldbythoseplants.TheNWPA alsorequirestheDOEannuallytoreviewthenuclearwaste feeagainstthecostofthenuclearwastedisposalprogram andtoproposetotheUnitedStatesCongressanyfee adjustmentnecessarytooffsetthecostsoftheprogram.As requiredbytheNWPA,AmerenMissouriandotherutilities haveenteredintostandardcontractswiththefederal government.Thegovernment,representedbytheDOE,is responsibleforimplementingtheseprovisionsoftheNWPA.ConsistentwiththeNWPAanditsstandard contract,AmerenMissourihadhistoricallycollectedone millfromitselectriccustomersforeachkilowatthourof electricitythatitgeneratesandsellsfromitsCallaway energycenter.However,asdescribedbelow,Ameren Missourihassuspendedcollectionofthisfee.AlthoughboththeNWPAandthestandardcontractstatedthatthefederalgovernmentwouldbegintodispose ofspentnuclearfuelby1998,thefederalgovernmentisnot meetingitsdisposalobligation.AmerenMissourihas sufficientinstalledcapacityattheCallawayenergycenterto storeitsspentnuclearfuelgeneratedthrough2020andit hasthecapabilityforadditionalstoragecapacityforspent nuclearfuelgeneratedthroughtheendoftheenergy center'scurrentlicensedlife.TheDOE'sdelayincarrying outitsobligationtodisposeofspentnuclearfuelfromthe Callawayenergycenterisnotexpectedtoadverselyaffect thecontinuedoperationsoftheenergycenter.
116 InJanuary2013,theDOEissueditsplanforthemanagementanddisposalofspentnuclearfuel.TheDOE'splancallsforapilotinterimstoragefacilitytobegin operationwithaninitialfocusonacceptingspentnuclear fuelfromshutdownreactorsitesby2021.By2025,alarger interimstoragefacilitywouldbeavailable,potentiallyco-locatedwiththepilotfacilityonageologicrepository.The planalsoproposestobeginoperationofapermanent geologicalrepositoryby2048.Becausethefederalgovernmentisnotmeetingitsdisposalobligation,theNuclearEnergyInstitute,anumber ofindividualutilities,andtheNationalAssociationof RegulatoryUtilityCommissionerssuedtheDOEinthe UnitedStatesCourtofAppealsfortheDistrictofColumbia Circuit,seekingthesuspensionoftheonemillnuclear wastefee.InNovember2013,thecourtorderedtheDOEto submitaproposaltotheUnitedStatesCongresstoreduce thefeetozero.InJanuary2014,theDOEsubmittedthat proposal,anditbecameeffectiveinMay2014.Sincethe nuclearwastefeewaspreviouslyincludedinAmeren Missouri'sFAC,thecostreductionwillbepassedonto electricutilitycustomerswithnomaterialeffecton Ameren'sorAmerenMissouri'snetincome.AsaresultoftheDOE'sfailuretobegintodisposeofspentnuclearfuelfromcommercialnuclearenergycenters andfulfillitscontractualobligations,AmerenMissouriand othernuclearenergycenterownershavealsosuedtheDOE torecovercostsincurredforongoingstorageoftheirspent fuel.AmerenMissourifiledabreachofcontractlawsuitto recovercoststhatitincurredthrough2009.Thelawsuit soughtreimbursementforthecostofrerackingtheCallaway energycenter'sspentfuelpool,forcertainNRCfees,andfor MissouriadvaloremtaxesthatAmerenMissouriwouldnot haveincurredhadtheDOEperformeditscontractual obligations.Thepartiesenteredintoasettlementagreement thatprovidesforannualrecoveryofadditionalspentfuel storageandrelatedcostsincurredfrom2010through2016, withtheabilitytoextendtherecoveryperiodasmutually agreeduponbytheparties.Includedinthese reimbursementsarecostsrelatedtoadryspentfuelstorage facilitythatAmerenMissouriisconstructingatitsCallaway energycenter.AmerenMissouriintendstobegintransferring spentfuelassembliestothisfacilityin2015.Ameren Missouriwillcontinuetoapplyforreimbursementfromthe DOEforthecosttoconstructandoperatethedryspentfuel storagefacilityalongwithrelatedallowablecosts.InDecember2011,AmerenMissourisubmittedalicenseextensionapplicationtotheNRCtoextendits Callawayenergycenter'soperatinglicensefrom2024to 2044.ThereisnodeadlinebywhichtheNRCmustacton thisapplication.AmongtherulesuponwhichtheNRChas historicallyreliedinapprovinglicenseextensionsarerules dealingwiththestorageofspentnuclearfuelatthereactor siteandwiththeNRC'sconfidencethatpermanentdisposal ofspentnuclearfuelwillbeavailablewhenneeded.Ina June2012decision,theUnitedStatesCourtofAppealsfor theDistrictofColumbiaCircuitvacatedtheserulesand remandedthecasetotheNRC,holdingthattheNRC'sobligationsundertheNationalEnvironmentalPolicyAct requiredamorethoroughenvironmentalanalysisinsupport oftheNRC'swasteconfidencedecision.Asaresult,the NRCstatedthatitwouldnotissuelicensesdependenton thevacatedrulesuntilitappropriatelyaddressedthecourt's remand.InOctober2014,afteritcompletedtherequired environmentalanalysis,theNRClifteditssuspensionon finallicensingdecisions.InFebruary2015,thestaffofthe NRCissueditsrecommendationthattheNRCapprove AmerenMissouri'sapplicationfora20-yearrenewalofthe Callawayenergycenter'soperatinglicense.ElectricutilityratescurrentlychargedtocustomersprovidefortherecoveryoftheCallawayenergycenter's decommissioningcosts,whichincludedecontamination, dismantling,andsiterestorationcosts,overanassumed 40-yearlifeofthenuclearcenter,endingwiththeexpiration oftheenergycenter'scurrentoperatinglicensein2024.
Amountscollectedfromcustomersaredepositedintothe externalnucleardecommissioningtrustfundtoprovidefor theCallawayenergycenter'sdecommissioning.Itisassumed thattheCallawayenergycentersitewillbedecommissioned throughtheimmediatedismantlementmethodandremoved fromservice.AmerenandAmerenMissourihaverecordedan AROfortheCallawayenergycenterdecommissioningcosts atfairvalue,whichrepresentsthepresentvalueofestimated futurecashoutflows.Annualdecommissioningcostsof
$7millionareincludedinthecostsofserviceusedto establishelectricratesforAmerenMissouri'scustomers.
Everythreeyears,theMoPSCrequiresAmerenMissourito fileanupdatedcoststudyandfundinganalysisfor decommissioningitsCallawayenergycenter.Electricrates maybeadjustedatsuchtimestoreflectchangedestimates.
Thelastcoststudyandfundinganalysiswasfiledwiththe MoPSCinSeptember2011.TheMoPSChasauthorizeda delayofthe2014coststudyandfundinganalysisfilinguntil 2015pendingtheoutcomeofAmerenMissouri'soperating licenseextensionapplicationunderreviewbytheNRC.
FollowingtheNRC'sdecisionregardingAmerenMissouri's operatinglicenseextensionapplication,anupdatedcost studyandarevisedfundinganalysiswillbefiled.Rates chargedtocustomerswillbeadjustedaccordingly,as approvedbytheMoPSC,toreflecttheoperatinglicense extensionapplicationdecision,theupdatedcoststudyand therevisedfundinganalysis.Iftheassumedreturnontrust assetsisnotearned,webelievethatitisprobablethatany suchearningsdeficiencywillberecoveredinrates.Thefair valueofthetrustfundforAmerenMissouri'sCallawayenergy centerisreportedas"Nucleardecommissioningtrustfund" inAmeren'sandAmerenMissouri'sbalancesheets.This amountislegallyrestrictedandmaybeusedonlytofundthe costsofnucleardecommissioning.Changesinthefairvalue ofthetrustfundarerecordedasanincreaseordecreaseto thenucleardecommissioningtrustfund,withanoffsetting adjustmenttotherelatedregulatoryliability.SeeNote2-RateandRegulatoryMattersandNote9-NuclearDecommissioningTrustFundInvestments foradditionalinformationrelatedtotheCallawayenergy
center.117 NOTE11-RETIREMENTBENEFITSTheprimaryobjectiveoftheAmerenpensionandpostretirementbenefitplansistoprovideeligibleemployeeswithpensionandpostretirementhealthcareandlife insurancebenefits.Amerenoffersdefinedbenefitpension andpostretirementbenefitplanscoveringsubstantiallyall ofitsemployees.Amerenusesameasurementdateof December31foritspensionandpostretirementbenefit plans.AmerenMissouriandAmerenIllinoiseachparticipate inAmeren'ssingle-employerpensionandother postretirementplans.Ameren'squalifiedpensionplanisthe AmerenRetirementPlan.Amerenalsohasanunfunded nonqualifiedpensionplan,theAmerenSupplemental RetirementPlan,whichisavailableforcertainmanagement employeesandretireestoprovideasupplementalbenefit whentheirqualifiedpensionplanbenefitsarecappedto complywithInternalRevenueCodelimitations.Ameren's otherpostretirementplansaretheAmerenRetireeMedical PlanandtheAmerenGroupLifeInsurancePlan.Only Amerensubsidiariesparticipateintheplanslistedabove.InDecember2013,AmerencompletedthedivestitureofNewAERtoIPH.Inaccordancewiththetransaction agreement,Amerenretainedthepensionobligationsasof December2,2013,associatedwiththecurrentandformer employeesofNewAERanditssubsidiarieswhowere includedintheAmerenRetirementPlanandtheAmeren SupplementalRetirementPlan.Amerenalsoretainedthe postretirementbenefitobligationsassociatedwiththe employeesofNewAERanditssubsidiarieswhowereeligibletoretireatDecember2,2013,andwhowere includedintheAmerenRetireeMedicalPlanandthe AmerenGroupLifeInsurancePlan.Ameren'sunfundedobligationunderitspensionandotherpostretirementbenefitplanswas$710millionand
$461millionasofDecember31,2014,andDecember31, 2013,respectively.Thesenetliabilitiesarerecordedin "Othercurrentliabilities,""Pensionandother postretirementbenefits,"and"Otherassets"onAmeren's consolidatedbalancesheet.Theprimaryfactorcontributing totheincreaseintheunfundedobligationduring2014was a75basispointdecreaseinthepensionandother postretirementbenefitplandiscountratesusedto determinethepresentvalueoftheobligation.Theoffsetto theincreaseintheunfundedobligationwasprimarilyan increaseto"Regulatoryassets"onAmeren's,Ameren Missouri's,andAmerenIllinois'consolidatedbalancesheet.ThefollowingtablepresentsthenetbenefitliabilityrecordedonthebalancesheetsofeachoftheAmeren CompaniesasofDecember31,2014and2013:20142013 Ameren (a).............................$710$461AmerenMissouri
........................
277 191AmerenIllinois
.........................
278 159(a)IncludesamountsforAmerenregistrantandnonregistrant subsidiaries.
118 Amerenrecognizestheunderfundedstatusofitspensionandpostretirementplansasaliabilityonitsconsolidatedbalancesheet,withoffsettingentriestoaccumulatedOCIandregulatoryassets,inaccordancewithauthoritativeaccountingguidance.ThefollowingtablepresentsthefundedstatusofAmeren'spensionandpostretirementbenefitplansasofDecember31,2014and2013.ItalsoprovidestheamountsincludedinregulatoryassetsandaccumulatedOCIat December31,2014and2013,thathavenotbeenrecognizedinnetperiodicbenefitcosts.
2014 2013PensionBenefits (a)Postretirement Benefits (a)PensionBenefits (a)Postretirement Benefits (a)Accumulatedbenefitobligationatendofyear
...............$4,176$(b)$3,698$(b)Changeinbenefitobligation:Netbenefitobligationatbeginningofyear
................$3,900$1,096$4,051$1,157Servicecost
.......................................
79 19 91 22Interestcost
.......................................
183 50 163 46Participantcontributions
..............................
-1 6-1 6Actuarial(gain)loss
.................................
462 84 (207)(76)Curtailmentgain (c)...................................
---(3)Settlement (d).......................................
---(5)Benefitspaid
.......................................
(214)(65)(198)(64)Federalsubsidyonbenefitspaid
........................(b)3 (b)3Netbenefitobligationatendofyear
.......................
4,410 1,203 3,900 1,096Changeinplanassets:Fairvalueofplanassetsatbeginningofyear
..............
3,461 1,074 3,127 938Actualreturnonplanassets
...........................
448 75 376 156Employercontributions
...............................
99 6 156 25Federalsubsidyonbenefitspaid
........................(b)3 (b)3Participantcontributions
..............................
-1 6-1 6Benefitspaid
.......................................
(214)(65)(198)(64)Fairvalueofplanassetsatendofyear
.....................
3,794 1,109 3,461 1,074Fundedstatus-deficiency
..............................
616 94 439 22AccruedbenefitcostatDecember31
......................$616$94$439$22Amountsrecognizedinthebalancesheetconsistof:Noncurrentasset (e)..................................$-$-$-$(9)Currentliability (f)....................................
32 31Noncurrentliability
..................................
613 92 436 30Netliabilityrecognized
...............................$616$94$439$22Amountsrecognizedinregulatoryassetsconsistof:Netactuarial(gain)loss
..............................$452$(7)$282$(71)Priorservicecost(credit)
.............................
(6)(16)(7)(20)Amounts(pretax)recognizedinaccumulatedOCIconsistof:Netactuarial(gain)loss
..............................
29 (5)17 (12)Priorservicecost(credit)
.............................
-(1)-(1)Total.............................................$475$(29)$292$(104)(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.(b)Notapplicable.
(c)EffectivewiththedivestitureofNewAERonDecember2,2013,theliabilityforactivemanagementemployeesofNewAERanditssubsidiariesnoteligibletoretirewereneithertransferredtoIPHnorretainedbyAmeren,whichresultedinacurtailmentgain.SeeNote16-Divestiture TransactionsandDiscontinuedOperationsforadditionalinformationonthedivestiture.(d)EffectivewiththedivestitureofNewAERonDecember2,2013,theliabilityforactiveunionemployeesofNewAERanditssubsidiariesnoteligibletoretirewastransferredtoIPHbasedontheassumptionofthecollectivebargainingagreementsinplace,whichresultedina settlement.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsforadditionalinformationonthedivestiture.(e)Includedin"Otherassets"onAmeren'sconsolidatedbalancesheet.
(f)Includedin"Othercurrentliabilities"onAmeren'sconsolidatedbalancesheet.ThefollowingtablepresentstheassumptionsusedtodetermineourbenefitobligationsatDecember31,2014and2013:PensionBenefitsPostretirementBenefits2014201320142013Discountrateatmeasurementdate
..................................................
4.00%4.75%4.00%4.75%Increaseinfuturecompensation
....................................................
3.50 3.50 3.50 3.50Medicalcosttrendrate(initial)
.....................................................(a)(a)5.00 5.00Medicalcosttrendrate(ultimate)
...................................................(a)(a)5.00 5.00Yearstoultimaterate
.............................................................(a)(a)--(a)Notapplicable 119 Amerendeterminesdiscountrateassumptionsbyidentifyingatheoreticalsettlementportfolioofhigh-qualitycorporatebondssufficienttoprovideforaplan'sprojected benefitpayments.Thesettlementportfolioofbondsis selectedfromapoolofmorethan700high-quality corporatebonds.Asinglediscountrateisthendetermined; thatrateresultsinadiscountedvalueoftheplan'sbenefit paymentsthatequatestothemarketvalueoftheselected bonds.Inaddition,during2014,Amerenadoptedthe SocietyofActuaries2014MortalityTablesReportand MortalityImprovementScale.Theupdatedmortalitytables assumeincreasinglifeexpectanciesforouremployeesand retirees,whichresultedinanincreasetoourpensionand otherpostretirementbenefitobligations.
FundingPensionbenefitsarebasedontheemployees'yearsofserviceandcompensation.Ameren'spensionplansarefundedincompliancewithincometaxregulationsandfederal fundingorregulatoryrequirements.Asaresult,Ameren expectstofunditspensionplanatalevelequaltothegreater ofthepensionexpenseorthelegallyrequiredminimum contribution.ConsideringitsassumptionsatDecember31, 2014,itsinvestmentperformancein2014,anditspension fundingpolicy,Amerenexpectstomakeannualcontributions of$25millionto$115millionineachofthenextfiveyears, withaggregateestimatedcontributionsof$290million.We expectAmerenMissouri'sandAmerenIllinois'portionofthe futurefundingrequirementstobe41%and40%,
respectively.Theseamountsareestimates.Theymaychange basedonactualinvestmentperformance,changesininterest rates,changesinourassumptions,changesingovernment regulations,andanyvoluntarycontributions.Ourfunding policyforpostretirementbenefitsisprimarilytofundthe VoluntaryEmployeeBeneficiaryAssociation(VEBA)truststo matchtheannualpostretirementexpense.Thefollowingtablepresentsthecashcontributionsmadetoourdefinedbenefitretirementplanandtoour postretirementplansduring2014,2013,and2012:PensionBenefitsPostretirementBenefits201420132012201420132012AmerenMissouri
....$41$60$52$3$10$9AmerenIllinois
.....395046 21135 Other.............
194630 1 41 Ameren (a)..........
99156128 62545(a)IncludesamountsforAmerenregistrantandnonregistrant subsidiaries.InvestmentStrategyandPoliciesAmerenmanagesplanassetsinaccordancewiththe"prudentinvestor"guidelinescontainedinERISA.The investmentcommittee,totheextentthatauthorityis delegatedtoitbythefinancecommitteeofAmeren'sboard ofdirectors,implementsinvestmentstrategyandasset allocationguidelinesfortheplanassets.Theinvestment committeeincludesmembersofseniormanagement.The investmentcommittee'sgoalsaretwofold:first,toensure thatsufficientfundsareavailabletoprovidethebenefitsat thetimetheyarepayable;andsecond,tomaximizetotal returnonplanassetsandtominimizeexpensevolatility consistentwithitstoleranceforrisk.Amerendelegatesthe taskofinvestmentmanagementtospecialistsineachasset class.Asappropriate,Amerenprovideseachinvestment managerwithguidelinesthatspecifyallowableand prohibitedinvestmenttypes.Theinvestmentcommittee regularlymonitorsmanagerperformanceandcompliance withinvestmentguidelines.Theexpectedreturnonplanassetsassumptionisbasedonhistoricalandprojectedratesofreturnforcurrent andplannedassetclassesintheinvestmentportfolio.
Projectedratesofreturnforeachassetclasswere estimatedafterananalysisofhistoricalexperience,future expectations,andthevolatilityofthevariousassetclasses.
Afterconsideringthetargetassetallocationforeachasset class,weadjustedtheoverallexpectedrateofreturnforthe portfolioforhistoricalandexpectedexperienceofactive portfoliomanagementresultscomparedwithbenchmark returnsandfortheeffectofexpensespaidfromplanassets.
Amerenwilluseanexpectedreturnonplanassetsforits pensionplanassetsandpostretirementplanassetsof 7.25%and7.00%,respectively,in2015.Noplanassetsare expectedtobereturnedtoAmerenduring2015.
120 Ameren'sinvestmentcommitteestrivestoassembleaportfolioofdiversifiedassetsthatdoesnotcreateasignificantconcentrationofrisks.Theinvestmentcommitteedevelopsassetallocationguidelinesbetweenassetclasses,anditcreatesdiversificationthroughinvestmentsinassetsthatdifferbytype(equity,debt,realestate,privateequity),duration,market capitalization,country,style(growthorvalue)andindustry,amongotherfactors.Thediversificationofassetsisdisplayedin thetargetallocationtablebelow.Theinvestmentcommitteealsoroutinelyrebalancestheplanassetstoadheretothe diversificationgoals.Theinvestmentcommittee'sstrategyreducestheconcentrationofinvestmentrisk;however,Amerenis stillsubjecttooverallmarketrisk.Thefollowingtablepresentsourtargetallocationsfor2015andourpensionand postretirementplans'assetcategoriesasofDecember31,2014and2013:
Asset CategoryTargetAllocation 2015PercentageofPlanAssetsatDecember31, 2014 2013PensionPlan:Cashandcashequivalents........................................0%-5%
2%2%Equitysecurities:U.S.large-capitalization.........................................29%-39%
34%36%U.S.small-andmid-capitalization.................................2%-12%
7%8%Internationalandemergingmarkets...............................9%-19%
12%14%Totalequity....................................................50%-60%
53%58%Debtsecurities..................................................35%-45%
41%36%Realestate.....................................................0%-9%
4%4%Privateequity...................................................0%-4%(a)(a)Total.........................................................
100%100%PostretirementPlans:
Cashandcashequivalents........................................0%-10%
4%4%Equitysecurities:U.S.large-capitalization.........................................33%-43%
40%41%U.S.small-andmid-capitalization.................................3%-13%
7%8%International.................................................10%-20%
13%14%Totalequity....................................................55%-65%
60%63%Debtsecurities..................................................30%-40%
36%33%Total.........................................................
100%100%(a)Lessthan1%ofplanassets.Ingeneral,theUnitedStateslarge-capitalizationequityinvestmentsarepassivelymanagedorindexed,whereastheinternational,emergingmarkets,UnitedStatessmall-capitalization,andUnitedStatesmid-capitalizationequityinvestmentsareactivelymanagedbyinvestmentmanagers.Debtsecuritiesincludeabroadrangeoffixedincomevehicles.Debtsecurityinvestmentsinhigh-yieldsecurities,emergingmarketsecurities,andnon-UnitedStatesdollar-denominatedsecuritiesare ownedbytheplans,butinlimitedquantitiestoreducerisk.Mostofthedebtsecurityinvestmentsareunderactive managementbyinvestmentmanagers.Realestateinvestmentsincludeprivaterealestatevehicles;however,Amerendoesnot,bypolicy,holddirectinvestmentsinrealestateproperty.Ameren'sinvestmentinprivateequityfundsisspreadamongnine differentlimitedpartnerships,withinvestedcapitalrangingfrom$0.1millionto$5millionineach,whichinvestprimarilyina diversifiednumberofsmallUnitedStates-basedcompanies.Nofurthercommitmentsmaybemadetoprivateequity investmentswithoutapprovalbythefinancecommitteeoftheboardofdirectors.Additionally,Ameren'sinvestmentcommitteeallowsinvestmentmanagerstousederivatives,suchasindexfutures,exchangetradedfunds,foreignexchangefutures,and options,incertainsituations,toincreaseortoreducemarketexposureinanefficientandtimelymanner.FairValueMeasurementsofPlanAssetsInvestmentsinthepensionandpostretirementbenefitplanswerestatedatfairvalueasofDecember31,2014.Thefairvalueofanassetistheamountthatwouldbereceiveduponitssaleinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Cashandcashequivalentshaveinitialmaturitiesofthreemonthsorlessandarerecordedatcostplus accruedinterest.Thecarryingamountsofcashandcashequivalentsapproximatefairvaluebecauseoftheshort-termnature oftheseinstruments.Investmentstradedinactivemarketsonnationalorinternationalsecuritiesexchangesarevaluedat closingpricesonthelastbusinessdayonorbeforethemeasurementdate.Securitiestradedinover-the-countermarketsare valuedbasedonquotedmarketprices,brokerordealerquotations,oralternativepricingsourceswithreasonablelevelsof pricetransparency.Derivativecontractsarevaluedatfairvalue,asdeterminedbytheinvestmentmanagers(orindependent thirdpartiesonbehalfoftheinvestmentmanagers),whouseproprietarymodelsandtakeintoconsiderationexchange quotationsonunderlyinginstruments,dealerquotations,andothermarketinformation.Thefairvalueofrealestateisbasedonannualappraisalreportspreparedbyanindependentrealestateappraiser.
121 Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchydiscussedinNote8-FairValueMeasurements,thepensionplanassetsmeasuredatfairvalueasofDecember31,2014:QuotedPricesinActiveMarketsforIdentifiedAssets(Level1)SignificantOtherObservableInputs(Level2)SignificantOther Unobservable Inputs(Level3)TotalCashandcashequivalents..................................$-$38$-$38Equitysecurities:U.S.large-capitalization..................................-1,331-1,331U.S.small-andmid-capitalization..........................270--270Internationalandemergingmarkets.........................134360-494Debtsecurities:Corporatebonds........................................-1,026-1,026Municipalbonds........................................-175-175U.S.treasuryandagencysecurities.........................6366-372 Other.................................................-31-31Realestate..............................................--147147Privateequity............................................--1313Derivativeassets..........................................1--1 Total...................................................$411$3,327$160$3,898Less:MedicalbenefitassetsatDecember31 (a)..................
(125)Plus:NetreceivablesatDecember31 (b)........................21Fairvalueofpensionplansassetsatyearend...................$
3,794(a)Medicalbenefit(healthandwelfare)componentforaccountsmaintainedinaccordancewithSection401(h)oftheInternalRevenueCodetofundaportionofthepostretirementobligation.(b)Receivablesrelatedtopendingsecuritysales,offsetbypayablesrelatedtopendingsecuritypurchases.Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchydiscussedinNote8-FairValueMeasurements,thepensionplanassetsmeasuredatfairvalueasofDecember31,2013:QuotedPricesinActiveMarketsforIdentifiedAssetsorLiabilities(Level1)SignificantOtherObservableInputs(Level2)SignificantOther Unobservable Inputs(Level3)TotalCashandcashequivalents..................................$5$39$-$44Equitysecurities:U.S.large-capitalization..................................1071,162-1,269U.S.small-andmid-capitalization..........................273--273Internationalandemergingmarkets.........................143372-515Debtsecurities:Corporatebonds........................................-860-860Municipalbonds........................................-149-149U.S.treasuryandagencysecurities.........................-256-256 Other.................................................-27-27Realestate..............................................--131131Privateequity............................................--1515Derivativeassets..........................................1--1Derivativeliabilities........................................(1)--(1)
Total...................................................$528$2,865$146$3,539Less:MedicalbenefitassetsatDecember31 (a)..................
(112)Plus:NetreceivablesatDecember31 (b)........................34Fairvalueofpensionplansassetsatyearend...................$
3,461(a)Medicalbenefit(healthandwelfare)componentforaccountsmaintainedinaccordancewithSection401(h)oftheInternalRevenueCodetofundaportionofthepostretirementobligation.(b)Receivablesrelatedtopendingsecuritysales,offsetbypayablesrelatedtopendingsecuritypurchases.
122 ThefollowingtablesummarizesthechangesinthefairvalueofthepensionplanassetsclassifiedasLevel3inthefairvaluehierarchyforeachoftheyearsendedDecember31,2014and2013:
BeginningBalanceatJanuary1,ActualReturnonPlanAssetsRelatedtoAssetsStillHeldattheReportingDateActualReturnonPlanAssetsRelatedtoAssetsSoldDuringthePeriod Purchases,Sales,andSettlements,Net Net Transfersinto(outof)ofLevel3EndingBalanceatDecember31, 2014:Realestate
............$131$11$-$5$-$147Privateequity
..........
15 (9)10 (3)-13 2013:
Realestate............$118$9$-$4$-$131Privateequity..........19(9)11(6)-15Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchydiscussedinNote8-FairValueMeasurements,thepostretirementbenefitplansassetsmeasuredatfairvalueasofDecember31,2014:QuotedPricesinActiveMarketsforIdentifiedAssets(Level1)SignificantOtherObservableInputs(Level2)SignificantOther Unobservable Inputs(Level3)TotalCashandcashequivalents..................................$89$-$-$89Equitysecurities:U.S.large-capitalization..................................291101-392U.S.small-andmid-capitalization..........................70--70 International...........................................3794-131 Other.................................................-77Debtsecurities:Corporatebonds........................................-105-105Municipalbonds........................................-111-111U.S.treasuryandagencysecurities.........................-89-89 Other.................................................-44-44 Total...................................................$487$551$-$
1,038Plus:MedicalbenefitassetsatDecember31 (a)...................125Less:NetpayablesatDecember31 (b)..........................
(54)Fairvalueofpostretirementbenefitplansassetsatyearend........$1,109(a)Medicalbenefit(healthandwelfare)componentfor401(h)accountstofundaportionofthepostretirementobligation.These401(h)assetsareincludedinthepensionplanassetsshownabove.(b)Payablesrelatedtopendingsecuritypurchases,offsetbyinterestreceivablesandreceivablesrelatedtopendingsecuritysales.Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchydiscussedinNote8-FairValueMeasurements,thepostretirementbenefitplansassetsmeasuredatfairvalueasofDecember31,2013:QuotedPricesinActiveMarketsforIdentifiedAssets(Level1)SignificantOtherObservableInputs(Level2)SignificantOther Unobservable Inputs(Level3)TotalCashandcashequivalents..................................$77$-$-$77Equitysecurities:U.S.large-capitalization..................................297101-398U.S.small-andmid-capitalization..........................77--77 International...........................................3996-135 Other.................................................-2-2Debtsecurities:Corporatebonds........................................-97-97Municipalbonds........................................-103-103U.S.treasuryandagencysecurities.........................-72-72 Other.................................................-40-40 Total...................................................$490$511$-$
1,001Plus:MedicalbenefitassetsatDecember31 (a)...................112Less:NetpayablesatDecember31 (b)..........................
(39)Fairvalueofpostretirementbenefitplansassetsatyearend........$1,074(a)Medicalbenefit(healthandwelfare)componentfor401(h)accountstofundaportionofthepostretirementobligation.These401(h)assetsareincludedinthepensionplanassetsshownabove.(b)Payablesrelatedtopendingsecuritypurchases,offsetbyMedicare,interestreceivables,andreceivablesrelatedtopendingsecuritysales.
123 NetPeriodicBenefitCostThefollowingtablepresentsthecomponentsofthenetperiodicbenefitcostofourpensionandpostretirementbenefitplansduring2014,2013,and2012:PensionBenefitsPostretirementBenefits Ameren (a)Ameren (a)2014Servicecost
......................................................................$79$19Interestcost
......................................................................18350Expectedreturnonplanassets
........................................................(229)(65)Amortizationof:Priorservicecredit
...............................................................(1)(5)Actuarial(gain)loss
..............................................................49(7)Netperiodicbenefitcost(benefit)
......................................................$81$(8)2013 Servicecost......................................................................$91$22Interestcost......................................................................16346Expectedreturnonplanassets
........................................................(218)(62)Amortizationof:Priorservicecredit...............................................................(2)(6)Actuarialloss...................................................................878Curtailmentgain
...................................................................(12)(7)Netperiodicbenefitcost (b)...........................................................$109$1 2012 Servicecost......................................................................$81$22Interestcost......................................................................16647Expectedreturnonplanassets
........................................................
(208)(56)Amortizationof:Transitionobligation
..............................................................
-2Priorservicecredit
...............................................................(3)(6)Actuarialloss...................................................................75 5Netperiodicbenefitcost (c)...........................................................$111$14(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.
(b)Thenetperiodicbenefitcostincludesa$6millionanda$7millionnetgainforpensionbenefitsandpostretirementbenefits,respectively,whichwasincludedin"Income(loss)fromdiscontinuedoperations,netoftaxes"onAmeren'sconsolidatedstatementofincome(loss).This netgainincludesthecurtailmentgainrecognizedin2013asaresultofasignificantreductioninemployeesasoftheDecember2,2013closing dateoftheNewAERdivestiture.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsforadditionalinformationonthe
divestiture.(c)Thenetperiodicbenefitcostincludes$9millionand$-millionintotalnetcostsforpensionbenefitsandpostretirementbenefits,respectively,whichwereincludedin"Income(loss)fromdiscontinuedoperations,netoftaxes"onAmeren'sconsolidatedstatementofincome(loss).See Note16-DivestitureTransactionsandDiscontinuedOperationsforadditionalinformationonthedivestiture.Thecurrentyearexpectedreturnonplanassetsisdeterminedprimarilybyadjustingtheprioryearmarket-relatedassetvalueforcurrentyearcontributions,disbursements,andexpectedreturn,plus25%oftheactualreturninexcessof(orlessthan)expectedreturnforthefourprioryears.TheestimatedamountsthatwillbeamortizedfromregulatoryassetsandaccumulatedOCIintonetperiodicbenefitcostin2015areasfollows:PensionBenefitsPostretirementBenefits Ameren (a)Ameren (a)Regulatoryassets:Priorservicecredit...............................................................$(1)$(4)Netactuarialloss.................................................................8615AccumulatedOCI:Netactuarial(gain)loss...........................................................2(2)
Total............................................................................$87$9(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.
124 Priorservicecostisamortizedonastraight-linebasisovertheaveragefutureserviceofactiveparticipantsbenefitingundertheplanamendment.Thenetactuarial(gain)losssubjecttoamortizationisamortizedonastraight-linebasisover10 years.TheAmerenCompaniesareresponsiblefortheirshareofthepensionandpostretirementbenefitcosts.Thefollowingtablepresentsthepensioncostsandthepostretirementbenefitcostsincurredandincludedincontinuingoperationsforthe yearsendedDecember31,2014,2013,and2012:PensionCostsPostretirementCosts201420132012201420132012AmerenMissouri
.....................................$50$69$63$3$8$10AmerenIllinois
......................................
304137 (9)-4 Other..............................................
1 52 (2)--Ameren (a)..........................................
81115102 (8)814(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.Theexpectedpensionandpostretirementbenefitpaymentsfromqualifiedtrustandcompanyfunds,whichreflectexpectedfutureservice,asofDecember31,2014,areasfollows:PensionBenefitsPostretirementBenefitsPaidfrom Qualified TrustPaidfrom Company FundsPaidfrom Qualified TrustPaidfrom Company Funds 2015...................................................$253$3$58$
2 2016...................................................256 361 2 2017...................................................257 464 2 2018...................................................260 368 2 2019...................................................260 370 22020-2024.............................................
1,273 11 388 11ThefollowingtablepresentstheassumptionsusedtodeterminenetperiodicbenefitcostforourpensionandpostretirementbenefitplansfortheyearsendedDecember31,2014,2013,and2012:PensionBenefitsPostretirementBenefits201420132012201420132012Discountrateatmeasurementdate
...........................
4.75%4.00%4.50%
4.75%4.00%4.50%Expectedreturnonplanassets
..............................
7.257.507.75 7.007.257.50Increaseinfuturecompensation
.............................
3.503.503.50 3.503.503.50Medicalcosttrendrate(initial)
..............................(a)(a)(a)5.005.005.50Medicalcosttrendrate(ultimate)
............................(a)(a)(a)5.005.005.00Yearstoultimaterate
.....................................(a)(a)(a)--1year(a)NotapplicableThetablebelowreflectsthesensitivityofAmeren'splanstopotentialchangesinkeyassumptions:PensionBenefitsPostretirementBenefitsServiceCostandInterest Cost Projected Benefit ObligationServiceCostandInterest Cost Postretirement Benefit Obligation0.25%decreaseindiscountrate...............................$(1)$138$1$390.25%increaseinsalaryscale
.................................
213--1.00%increaseinannualmedicaltrend
..........................
--3361.00%decreaseinannualmedicaltrend
.........................
--(2)(33)125 OtherAmerensponsorsa401(k)planforeligibleemployees.TheAmeren401(k)plancoveredalleligibleemployeesatDecember31,2014.Theplanallowedemployeestocontributeaportionoftheircompensationinaccordancewithspecificguidelines.Amerenmatchedapercentageoftheemployeecontributionsuptocertainlimits.Thefollowingtablepresentsthe portionofthematchingcontributiontotheAmeren401(k)planattributabletothecontinuingoperationsforeachofthe AmerenCompaniesfortheyearsendedDecember31,2014,2013,and2012:201420132012AmerenMissouri
.......................................................................$16$16$16AmerenIllinois
........................................................................
11109 Other................................................................................
1 11 Ameren (a)............................................................................
282726(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.NOTE12-STOCK-BASEDCOMPENSATIONAmeren'slong-termincentiveplanavailableforeligibleemployeesanddirectors,the2006IncentivePlan,wasreplacedprospectivelyfornewgrantsbythe2014IncentivePlaneffectiveinApril2014.The2014IncentivePlanprovidesforamaximum of8millioncommonsharestobeavailableforgranttoeligibleemployeesanddirectors.Itretainsmanyofthefeaturesofthe 2006IncentivePlan.Totheextentthattheissuanceofasharethatissubjecttoanoutstandingawardunderthe2006Incentive PlanwouldcauseAmerentoexceedthemaximumauthorizedsharesunderthe2006IncentivePlan,theissuanceofthatshare willtakeplaceunderthe2014IncentivePlan.Thiswillreducethemaximumnumberofsharesthatmaybegrantedunderthe 2014IncentivePlan.The2014IncentivePlanawardsmaybestockoptions,stockappreciationrights,restrictedstock,restrictedstockunits,performanceshares,performanceshareunits,cash-basedawards,andotherstock-basedawards.AsummaryofnonvestedsharesatDecember31,2014,andchangesduringtheyearendedDecember31,2014,underthe2006IncentivePlanandthe2014IncentivePlanarepresentedbelow:PerformanceShareUnits Share Units Weighted-averageFairValueperShareUnitNonvestedatJanuary1,2014
.....................................................1,218,544$33.23 Granted (a).....................................................................688,32338.90AprilGrants (b).................................................................38,55950.34Unearnedorforfeited (c)..........................................................(97,432)34.42Earnedandvested (d)............................................................(685,617)36.12NonvestedatDecember31,2014
..................................................
1,162,377$35.35(a)Includesperformanceshareunits(shareunits)grantedtocertainexecutiveandnonexecutiveofficersandothereligibleemployeesin2014underthe2006IncentivePlanandthe2014IncentivePlan.(b)InApril2014,certainexecutiveofficersweregrantedadditionalshareunitsunderthe2006IncentivePlanandthe2014IncentivePlan.Thesignificantassumptionsusedtocalculatefairvalueincludedaproratedthree-yearrisk-freeraterangingfrom0.76%to0.79%,volatilityof12%to18%forthepeergroup,andAmeren'sattainmentofathree-yearaverageearningspersharethresholdduringtheperformanceperiod.(c)Includesshareunitsgrantedin2012thatwerenotearnedbasedonperformanceprovisionsoftheawardgrants.
(d)Includesshareunitsgrantedin2012thatvestedasofDecember31,2014,thatwereearnedpursuanttotheprovisionsoftheawardgrants.Alsoincludesshareunitsthatvestedduetoattainmentofretirementeligibilitybycertainemployees.Actualsharesissuedforretirement-eligibleemployeeswillvarydependingonactualperformanceoverthethree-yearmeasurementperiod.Amerenrecordedcompensationexpenseof$19million,$20million,and$22millionfortheyearsendedDecember31,2014,2013,and2012,respectively,anda relatedtaxbenefitof$7million,$8million,and$8millionfor theyearsendedDecember31,2014,2013,and2012, respectively.Amerensettledperformanceshareunitsand restrictedsharesof$33million,$11million,and$11million fortheyearsendedDecember31,2014,2013,and2012.
Therewerenosignificantcompensationcostscapitalized relatedtotheperformanceshareunitsduringtheyearsended December31,2014,2013,and2012.AsofDecember31, 2014,totalcompensationcostof$18millionrelatedto nonvestedawardsnotyetrecognizedhasexpectedtobe recognizedoveraweighted-averageperiodof20months.PerformanceShareUnitsPerformanceshareunitshavebeengrantedunderthe2006IncentivePlanandthe2014IncentivePlan.Ashareunit vestsandentitlesanemployeetoreceivesharesofAmeren commonstock(plusaccumulateddividends)if,attheendof thethree-yearperformanceperiod,certainspecified performanceormarketconditionshavebeenmetandifthe individualremainsemployedbyAmeren.Theexactnumber ofsharesissuedpursuanttoashareunitvariesfrom0%to 200%ofthetargetaward,dependingonactualcompany performancerelativetotheperformancegoals.Thefairvalueofeachshareunitawardedin2014,excludingthegrantsissuedinAprilforcertainexecutive 126 officers,underthe2006IncentivePlanandthe2014IncentivePlanwasdeterminedtobe$38.90.Thatamount wasbasedonAmeren'sclosingcommonsharepriceof
$36.16atDecember31,2013,andlatticesimulations.
Latticesimulationsareusedtoestimateexpectedshare payoutbasedonAmeren'stotalshareholderreturnfora three-yearperformanceperiodrelativetothedesignated peergroupbeginningJanuary1,2014.Thesimulationscan produceagreaterfairvaluefortheshareunitthanthe applicableclosingcommonsharepricebecausethey includetheweightedpayoutscenariosinwhichanincrease inthesharepricehasoccurred.Thesignificant assumptionsusedtocalculatefairvaluealsoincludeda three-yearrisk-freerateof0.78%,volatilityof12%to18%
forthepeergroup,andAmeren'sattainmentofathree-year averageearningspersharethresholdduringthe performanceperiod.ThefairvalueofeachshareunitawardedinJanuary2013underthe2006IncentivePlanwasdeterminedtobe
$31.19.ThatamountwasbasedonAmeren'sclosing commonsharepriceof$30.72atDecember31,2012,and latticesimulations.Latticesimulationsareusedtoestimate expectedsharepayoutbasedonAmeren'stotalshareholder returnforathree-yearperformanceperiodrelativetothe designatedpeergroupbeginningJanuary1,2013.The simulationscanproduceagreaterfairvaluefortheshare unitthantheapplicableclosingcommonshareprice becausetheyincludetheweightedpayoutscenariosin whichanincreaseinthesharepricehasoccurred.The significantassumptionsusedtocalculatefairvaluealso includedathree-yearrisk-freerateof0.36%,volatilityof 12%to21%forthepeergroup,andAmeren'sattainment ofathree-yearaverageearningspersharethresholdduring theperformanceperiod.NOTE13-INCOMETAXESThefollowingtablepresentstheprincipalreasonsforthedifferencebetweentheeffectiveincometaxrateandthestatutoryfederalincometaxratefortheyearsendedDecember31,2014,2013,and2012:AmerenMissouriAmerenIllinoisAmeren 2014Statutoryfederalincometaxrate:
.............................................35%35%35%Increases(decreases)from:Amortizationofinvestmenttaxcredit
......................................(1)-(1)Statetax............................................................364Otherpermanentitems
.................................................--1Effectiveincometaxrate
....................................................37%41%39%2013 Statutoryfederalincometaxrate:.............................................35%35%35%Increases(decreases)from:Depreciationdifferences................................................-(1)-Amortizationofinvestmenttaxcredit......................................(1)-(1)Statetax............................................................364Otherpermanentitems.................................................1--Effectiveincometaxrate....................................................38%40%38%
2012 Statutoryfederalincometaxrate:.............................................35%35%35%Increases(decreases)from:Depreciationdifferences................................................(1)-(1)Amortizationofinvestmenttaxcredit......................................(1)(1)(1)Statetax............................................................365Reserveforuncertaintaxpositions........................................1--Otherpermanentitems.................................................--(1)Effectiveincometaxrate....................................................37%40%37%
127 Thefollowingtablepresentsthecomponentsofincometaxexpense(benefit)fortheyearsendedDecember31,2014,2013,and2012:AmerenMissouriAmerenIllinoisOtherAmeren 2014Currenttaxes:
Federal.............................................$(13)$(51)$27$(37)
State...............................................(3)(2)(32)(37)Deferredtaxes:
Federal.............................................222159(12)369 State...............................................28382288Deferredinvestmenttaxcredits,amortization
..................(5)(1)-(6)Totalincometaxexpense
.................................$229$143$5$377 2013 Currenttaxes:
Federal.............................................$136$(15)$(239)(a)$(118)State...............................................4121 (43)(a)19Deferredtaxes:
Federal.............................................6499205 (a)368 State...............................................6636 (a)48Deferredinvestmenttaxcredits,amortization..................(5)(1)-(6)Totalincometaxexpense(benefit)..........................$242$110$(41)$311 2012 Currenttaxes:
Federal.............................................$(25)$(7)$72$40 State...............................................(10)(3)2310Deferredtaxes:
Federal.............................................24876(120)204 State...............................................4430(14)60Deferredinvestmenttaxcredits,amortization..................(5)(2)-(7)Totalincometaxexpense(benefit)..........................$252$94$(39)$307(a)TheseamountsaresubstantiallyrelatedtothereversalofunrecognizedtaxbenefitsasaresultofIRSguidancerelatedtothedeductibilityofexpenditurestomaintain,replaceorimprovesteamorelectricpowergenerationproperty,alongwithcasualtylossdeductionsforstorm damage.Theamountsalsoreflecttheincreaseindeferredtaxexpenseduetoavailablenetoperatinglosses.TheIllinoiscorporateincometaxratewasincreasedto9.5%fromJanuary2011throughDecember2014.Thetaxratedecreasedto7.75%onJanuary1,2015andisscheduledtodecreaseto7.3%onJanuary1,2025.ThefollowingtablepresentsthedeferredtaxassetsanddeferredtaxliabilitiesrecordedasaresultoftemporarydifferencesatDecember31,2014and2013:AmerenMissouriAmerenIllinoisOtherAmeren 2014Accumulateddeferredincometaxes,netliability(asset):Plantrelated
.........................................$2,776$1,393$16$4,185Regulatoryassets,net
..................................82(5)178Deferredemployeebenefitcosts
..........................(80)(45)(95)(220)Revenuerequirementreconciliationadjustments
.............-66369Taxcarryforwards
.....................................(107)(139)(429)(675)
Other...............................................86(22)70134Totalnetaccumulateddeferredincometaxliabilities(assets)(a)....$2,757$1,248$(434)$3,571 2013 Accumulateddeferredincometaxes,netliability(asset):Plantrelated.........................................$2,513$1,243$13$3,769Regulatoryassets,net..................................742-76Deferredemployeebenefitcosts
..........................(74)(85)(114)(273)Revenuerequirementreconciliationadjustments.............-(4)2(2)Taxcarryforwards
.....................................(76)(95)(370)(541)
Other...............................................671038115Totalnetaccumulateddeferredincometaxliabilities(assets)(b)....$2,504$1,071$(431)$3,144(a)Includes$49millionrecordedin"Othercurrentassets"onAmerenMissouri'sbalancesheetasofDecember31,2014.(b)Includes$20millionrecordedin"Othercurrentassets"onAmerenMissouri'sbalancesheetasofDecember31,2013.
128 Thefollowingtablepresentsthecomponentsofdeferredtaxassetsrelatingtonetoperatinglosscarryforwards,taxcreditcarryforwards,andcharitablecontributioncarryforwardsatDecember31,2014:
Ameren Missouri AmerenIllinoisOtherAmerenNetoperatinglosscarryforwards:
Federal (a)..............................................$75$127$255$457 State (b)...............................................11105374Totalnetoperatinglosscarryforwards.........................$86$137$308$531Taxcreditcarryforwards:
Federal (c)..............................................$21$1$77$99 State (d)...............................................
1 23336Statevaluationallowance (e)................................(1)(1)(2)(4)Totaltaxcreditcarryforwards................................$21$2$108$131Charitablecontributioncarryforwards (f)........................$-$-$19$19Valuationallowance (g)....................................
--(6)(6)Totalcharitablecontributioncarryforwards.....................$-$-$13$13(a)Willbegintoexpirein2028.(b)Willbegintoexpirein2020.
(c)Willbegintoexpirein2029.
(d)Begantoexpirein2013.
(e)Thisbalanceincreasedbylessthan$1million,$-million,and$-millionforAmeren,AmerenMissouri,andAmerenIllinois,respectively,during2014.(f)Thesebegantoexpirein2013.
(g)Thisbalanceincreasedby$3million,$-millionand$-millionforAmeren,AmerenMissouriandAmerenIllinois,respectively,during2014.Thefollowingtablepresentsthecomponentsofdeferredtaxassetsrelatingtonetoperatinglosscarryforwards,taxcreditcarryforwards,andcharitablecontributioncarryforwardsatDecember31,2013:
Ameren Missouri AmerenIllinoisOtherAmerenNetoperatinglosscarryforwards:
Federal (a)..............................................$61$84$215$360 State (b)...............................................
3113448Totalnetoperatinglosscarryforwards.........................$64$95$249$408Taxcreditcarryforwards:
Federal (c)..............................................$12$-$76$88 State (d)...............................................
1 13234Statevaluationallowance (e)................................(1)(1)(2)(4)Totaltaxcreditcarryforwards................................$12$-$106$118Charitablecontributioncarryforwards (f)........................$-$-$18$18Valuationallowance (g)....................................
--(3)(3)Totalcharitablecontributioncarryforwards.....................$-$-$15$15(a)Willbegintoexpirein2028 (b)Willbegintoexpirein2019.
(c)Willbegintoexpirein2029.
(d)Begantoexpirein2013.
(e)Balanceincreasedby$2million,$-million,and$-millionforAmeren,AmerenMissouri,andAmerenIllinois,respectively,during2013.
(f)Thesebegantoexpirein2013.
(g)Thisbalanceincreasedby$3million,$-million,and$-millionforAmeren,AmerenMissouri,andAmerenIllinois,respectively,during2013.
129 UncertainTaxPositionsAreconciliationofthechangeintheunrecognizedtaxbenefitbalanceduringtheyearsendedDecember31,2012,2013,and2014,isasfollows:
Ameren Missouri AmerenIllinoisOtherAmerenUnrecognizedtaxbenefits-January1,2012....................$124$11$13$148Increasesbasedontaxpositionspriorto2012................4-15Decreasesbasedontaxpositionspriorto2012................(7)(1)(5)
(13)Increasesbasedontaxpositionsrelatedto2012...............153(1)17Changesrelatedtosettlementswithtaxingauthorities...........----Decreasesrelatedtothelapseofstatuteoflimitations...........--(1)(1)Unrecognizedtaxbenefits-December31,2012.................$136$13$7$156Increasesbasedontaxpositionspriorto2013................-257Decreasesbasedontaxpositionspriorto2013
................(122)(16)(5)(143)Increases(decreases)basedontaxpositionsrelatedto2013.....16-53 (a)69Changesrelatedtosettlementswithtaxingauthorities...........----Decreasesrelatedtothelapseofstatuteoflimitations...........1--1Unrecognizedtaxbenefits-December31,2013.................$31$(1)$60$90Increasesbasedontaxpositionspriorto2014
................1146Decreasesbasedontaxpositionspriorto2014
................(32)(1)(9)(42)Increasesbasedontaxpositionsrelatedto2014
...............----Changesrelatedtosettlementswithtaxingauthorities
...........----Increasesrelatedtothelapseofstatuteoflimitations
...........----Unrecognizedtaxbenefits(detriments)-December31,2014
.......$-$(1)$55$54Totalunrecognizedtaxbenefitsthat,ifrecognized,wouldaffecttheeffectivetaxratesasofDecember31,2012...................$3$(1)$(1)$1Totalunrecognizedtaxbenefits(detriments)that,ifrecognized,wouldaffecttheeffectivetaxratesasofDecember31,2013...........$3$-$51 (a)$54Totalunrecognizedtaxbenefitsthat,ifrecognized,wouldaffecttheeffectivetaxratesasofDecember31,2014
...................$-$(1)$53 (a)$52(a)PrimarilyduetotaxpositionsrelatingtotheNewAERdivestiture.Theincomestatementimpactofthisunrecognizedtaxbenefitwasincludedin"Income(loss)fromdiscontinuedoperations,netoftaxes"onAmeren'sconsolidatedstatementofincome(loss).SeeNote16-DivestitureTransactionsandDiscontinuedOperationsforadditionalinformation.TheAmerenCompaniesrecognizeinterestcharges(income)andpenaltiesaccruedontaxliabilitiesonapretaxbasisasinterestcharges(income)ormiscellaneousexpense,respectively,inthestatementsofincome.AreconciliationofthechangeintheliabilityforinterestonunrecognizedtaxbenefitsduringtheyearsendedDecember31,2012,2013,and2014,isasfollows:
Ameren Missouri AmerenIllinoisOtherAmerenLiabilityforinterest-January1,2012.........................$6$1$(2)$5Interestcharges(income)for201 2..........................
2-(1)1Liabilityforinterest-December31,2012......................$8$1$(3)$6Interestcharges(income)for201 3..........................(8)(1)4(5)Liabilityforinterest-December31,2013......................$-$-$1$1Interestcharges(income)for201 4..........................
--(1)(1)Liabilityforinterest-December31,2014
......................$-$-$-$-AsofDecember31,2012,2013,and2014,theAmerenCompanieshaveaccruednoamountforpenaltieswithrespecttounrecognizedtaxbenefits.In2014,finalsettlementsfortaxyears2007through2011werereachedwiththeIRS.Thesesettlements,whichresolvedtheuncertaintaxpositionsassociatedwiththetimingofresearchtaxdeductionsfortheseyears,resultedinadecreaseinAmeren'sandAmerenMissouri'sunrecognizedtaxbenefitsof$20million,and$13million,respectively.Inaddition,the settlementfortaxyears2007through2011providedcertaintyforthepreviouslyuncertaintaxpositionsassociatedwiththe timingofresearchtaxdeductionsfortheremainingopentaxyearsof2012,2013,and2014.Asaresult,thecertaintyprovided fromthesettlementresultedinan$18milliondecreaseinbothAmeren'sandAmerenMissouri'sunrecognizedtaxbenefits.
130 Thesettlementalsoresultedina$2millionincreasetoAmeren'sstateunrecognizedtaxbenefits.Thenetreductioninunrecognizedtaxbenefitsin2014didnotmateriallyaffectincometaxexpensefortheAmerenCompanies.In2013,unrecognizedtaxbenefitsrelatedtothedeductibilityofexpenditurestomaintain,replace,orimprovesteamorelectricpowergenerationproperty,alongwithcasualtylossdeductionsforstormdamage,werereducedby$103million,
$95million,and$5millionforAmeren,AmerenMissouri,andAmerenIllinois,respectively.Thisreductioninunrecognizedtax benefitsdidnotaffectincometaxexpensefortheAmerenCompanies.However,theliabilityforinterestrelatedtothese unrecognizedtaxbenefitswasreleasedin2013.In2013,Amerenadoptedanaccountingmethodchangeasaresultof guidanceissuedbytheIRS,withrespecttotheamountandtimingofthedeductionstomaintain,replace,orimprove generationproperty.ItisreasonablypossiblethatasettlementwillbereachedwiththeIRSinthenext12monthsfortheyears2012and2013.However,theAmerenCompaniesdonotbelieveanysettlementswouldhaveamaterialeffectonitsnetincomefrom continuingoperations.Stateincometaxreturnsaregenerallysubjecttoexaminationforaperiodofthreeyearsafterfiling.Thestateimpactofanyfederalchangesremainssubjecttoexaminationbyvariousstatesforaperiodofuptooneyearafterformalnotificationto thestates.TheAmerenCompaniescurrentlydonothavematerialstateincometaxissuesunderexamination,administrative appeals,orlitigation.AmerenMissourihasanuncertaintaxpositiontracker.UnderMissouri'sregulatoryframework,uncertaintaxpositionsdonotreduceAmerenMissouri'selectricratebase.Whenanuncertainincometaxpositionliabilityisresolved,theMoPSC requires,throughtheuncertaintaxpositiontracker,thecreationofaregulatoryassetorregulatoryliabilitytoreflectthetime value,usingtheweighted-averagecostofcapitalincludedineachoftheelectricrateordersineffectbeforethetaxposition wasresolved,ofthedifferencebetweentheuncertaintaxpositionliabilitythatwasexcludedfromratebaseandthefinaltax liability.Theresultingregulatoryassetorliabilitywillaffectearningsintheyearitiscreatedandthenwillbeamortizedover threeyearsbeginningontheeffectivedateofnewratesestablishedinthenextelectricratecase.NOTE14-RELATEDPARTYTRANSACTIONSTheAmerenCompanieshaveengagedin,andmayinthefutureengagein,affiliatetransactionsinthenormalcourseofbusiness.Thesetransactionsprimarilyconsistof naturalgasandpowerpurchasesandsales,services receivedorrendered,andborrowingsandlendings.
Transactionsbetweenaffiliatesarereportedas intercompanytransactionsontheirfinancialstatements,but areeliminatedinconsolidationforAmeren'sfinancial statements.Belowarethematerialrelatedparty
agreements.ElectricPowerSupplyAgreementsCapacitySupplyAgreementsAmerenIllinoismustacquirecapacitysufficienttomeetitsobligationstocustomers.AmerenIllinoisusesperiodicRFPprocessesthatareadministeredbytheIPAto contractcapacityonbehalfofitscustomers.Ameren MissouriparticipatesintheRFPprocessandhasbeena winningsupplierforcertainperiods.In2010,Ameren MissouricontractedtosupplyaportionofAmerenIllinois' capacityrequirementsforlessthan$1millionfortheperiod fromJune1,2010,throughMay31,2013.In2012, AmerenMissouricontractedtosupplyaportionofAmeren Illinois'capacityrequirementsfor$1millionand$3million forthe12monthsendingMay31,2014,and2015, respectively.EnergySwapsandEnergyProductsAmerenIllinoismustacquireenergysufficienttomeetitsobligationstocustomers.In2011,AmerenIllinoisusedanRFPprocess,administeredbytheIPA,toprocureenergyproductsthatsettledphysicallyfromJune1,2011,throughMay31,2014.
AmerenMissouriwasamongthewinningsuppliersinthe energyproductRFPprocess.In2011,AmerenMissouriand AmerenIllinoisenteredintoenergyproductagreementsby whichAmerenMissouriagreedtosellandAmerenIllinois agreedtopurchaseapproximately16,800megawatthoursat approximately$37permegawatthourduringthe12months endedMay31,2012,approximately40,800megawatthours atapproximately$29permegawatthourduringthe 12monthsendedMay31,2013,andapproximately 40,800megawatthoursatapproximately$28per megawatthourduringthe12monthsendedMay31,2014.
TheenergyproductagreementsbetweenAmerenMissouri andAmerenIllinoisfortheperiodsendedMay31,2012,and May31,2013,wereforoff-peakhoursonly.In2014,AmerenIllinoisusedanRFPprocess,administeredbytheIPA,toprocureenergyproductsthat willsettlephysicallyfromDecember1,2014,through May31,2017.AmerenMissouriwasamongthewinning suppliersintheenergyproductRFPprocess.Asaresult,AmerenMissouriandAmerenIllinoisenteredintoenergyproductagreementsbywhichAmerenMissouriagreedto sellandAmerenIllinoisagreedtopurchaseapproximately 168,400megawatthoursatapproximately$51per megawatthourduringtheperiodofJanuary1,2015, throughFebruary28,2017.InterconnectionandTransmissionAgreementsAmerenMissouriandAmerenIllinoisarepartiestoaninterconnectionagreementfortheuseoftheirrespective 131 transmissionlinesandotherfacilitiesforthedistributionofpower.Theseagreementshavenocontractualexpiration date,butmaybeterminatedbyeitherpartywiththreeyears'
notice.JointOwnershipAgreementATXIandAmerenIllinoishaveajointownershipagreementtoconstruct,own,operate,andmaintaincertainelectrictransmissionassetsinIllinois.Underthetermsof thisagreement,AmerenIllinoisandATXIareresponsible fortheirapplicableshareofallcostsrelatedtothe construction,operation,andmaintenanceofelectric transmissionsystems.Currently,therearenoconstruction projectsorjointownershipofexistingassetsunderthis
agreement.SupportServicesAgreementsAmerenServicesprovidessupportservicestoitsaffiliates.Thecostsofsupportservices,includingwages,employeebenefits,professionalservices,andother expenses,arebasedon,orareanallocationof,actualcosts incurred.Asharedservicessupportagreementcanbe terminatedatanytimebythemutualagreementofAmeren Servicesandthataffiliateorbyeitherpartywith60days' noticebeforetheendofacalendaryear.Inaddition,AmerenMissouriandAmerenIllinoisprovideaffiliates,primarilyAmerenServices,withaccessto theirfacilitiesforadministrativepurposes.Thecostofthe rentandfacilityservicesarebasedon,orareanallocation of,actualcostsincurred.Separately,AmerenMissouriandAmerenIllinoisprovidestorm-relatedandmiscellaneoussupportservices toeachotheronanas-neededbasis.TransmissionServicesAmerenIllinoistakestransmissionservicefromMISOfortheretailloaditservesintheAMILpricingzone.ATXIis oneofthetransmissionownersintheAMILpricingzone.
AccordinglyATXIreceivestransmissionpaymentsfrom AmerenIllinoisthroughtheMISObillingprocess.MoneyPoolSeeNote4-Short-termDebtandLiquidityandNote5-Long-termDebtandEquityFinancingsforadiscussionofaffiliateborrowingarrangements.CollateralPostingsUnderthetermsoftheIllinoispowerprocurementagreementsenteredintothroughRFPprocessesadministeredbytheIPA,suppliersmustpostcollateral undercertainmarketconditionstoprotectAmerenIllinois intheeventofnonperformance.Thecollateralpostingsare unilateral,meaningthatonlythesupplierscanberequired topostcollateral.Therefore,AmerenMissouri,asawinning supplierintheRFPprocess,mayberequiredtopost collateral.AsofDecember31,2014and2013,therewere nocollateralpostingsrequiredofAmerenMissourirelated totheIllinoispowerprocurementagreements.TaxAllocationAgreementSeeNote1-SummaryofSignificantAccountingPoliciesforadiscussionofthetaxallocationagreement.AtDecember31,2014,AmerenMissouriandAmerenIllinois hadanintercompanyreceivablebalancewithAmeren (parent)of$58millionand$15million,respectively,related tothetaxallocationagreement.ThefollowingtablepresentstheimpactonAmerenMissouriandAmerenIllinoisofrelatedpartytransactionsfortheyearsendedDecember31,2014,2013,and2012.Itisbasedprimarilyontheagreementsdiscussedaboveandthemoney poolarrangementsdiscussedinNote4-Short-termDebtandLiquidity.
AgreementIncomeStatementLineItem Ameren Missouri Ameren IllinoisAmerenMissouripowersupplyagreementsOperatingRevenues2014$5$(a)withAmerenIllinois20133(a)2012(b)(a)AmerenMissouriandAmerenIllinoisOperatingRevenues2014212rentandfacilityservices2013211 2012191AmerenMissouriandAmerenIllinoisOperatingRevenues20141(b)miscellaneoussupportservices201313 20121(b)TotalOperatingRevenues2014$27$2 2013254 2012201 132 AgreementIncomeStatementLineItem Ameren Missouri Ameren IllinoisAmerenIllinoispowersupplyPurchasedPower2014$(a)$5agreementswithAmerenMissouri2013(a)32012(a)(b)AmerenIllinoistransmissionPurchasedPower2014(a)2serviceswithATXI2013(a)2 2012(a)3TotalPurchasedPower2014$(a)$7 2013(a)5 2012(a)3AmerenServicessupportservicesOtherOperationsand2014$124$109 agreement Maintenance201311693 201210688Insurancepremiums (c)OtherOperationsand2014(b)(a)Maintenance2013(b)(a)2012(b)(a)TotalOtherOperationsand2014$124$109MaintenanceExpenses201311693 201210688Moneypoolborrowings(advances)Interest(Charges)2014$(b)$(b)Income2013(b)(b)2012(b)(b)(a)Notapplicable.
(b)Amountlessthan$1million.
(c)RepresentsinsurancepremiumspaidtoMissouriEnergyRiskAssuranceCompanyLLC,anaffiliate,forreplacementpower.NOTE15-COMMITMENTSANDCONTINGENCIESWeareinvolvedinlegal,tax,andregulatoryproceedingsbeforevariouscourts,regulatorycommissions,authorities,andgovernmentalagencieswithrespecttomattersthatariseintheordinarycourseofbusiness,someofwhichinvolvesubstantialamountsofmoney.Webelievethatthefinaldispositionoftheseproceedings,exceptasotherwisedisclosedinthesenotesto ourfinancialstatements,willnothaveamaterialadverseeffectonourresultsofoperations,financialposition,orliquidity.SeealsoNote1-SummaryofSignificantAccountingPolicies,Note2-RateandRegulatoryMatters,Note10-CallawayEnergyCenter,Note14-RelatedPartyTransactions,andNote16-DivestitureTransactionsandDiscontinuedOperationsin thisreport.CallawayEnergyCenterThefollowingtablepresentsinsurancecoverageatAmerenMissouri'sCallawayenergycenteratDecember31,2014.ThepropertycoverageandthenuclearliabilitycoveragemustberenewedonApril1andJanuary1,respectively,ofeachyear.TypeandSourceofCoverageMaximumCoveragesMaximumAssessmentsPublicliabilityandnuclearworkerliability:AmericanNuclearInsurers
..............................$375$-Poolparticipation
.....................................
13,241 (a)128 (b)$13,616 (c)$128Propertydamage:NuclearElectricInsuranceLimited........................$
2,250 (d)$23 (e)EuropeanMutualAssociationforNuclearInsurance...........500 (f)-$2,750$23Replacementpower:NuclearElectricInsuranceLimited........................$490 (g)$9 (e)MissouriEnergyRiskAssuranceCompanyLLC..............$64 (h)$-(a)Providedthroughmandatoryparticipationinanindustrywideretrospectivepremiumassessmentprogram.(b)RetrospectivepremiumunderthePrice-AndersonAct.Thisissubjecttoretrospectiveassessmentwithrespecttoacoveredlossinexcessof$375millionintheeventofanincidentatanylicensedUnitedStatescommercialreactor,payableat$19millionperyear.
133 (c)LimitofliabilityforeachincidentunderthePrice-AndersonActliabilityprovisionsoftheAtomicEnergyActof1954,asamended.Acompanycouldbeassessedupto$128millionperincidentforeachlicensedreactoritoperates,withamaximumof$19millionperincidenttobepaidinacalendaryearforeachreactor.Thislimitissubjecttochangetoaccountfortheeffectsofinflationandchangesinthenumberoflicensed
reactors.(d)NEILprovides$2.25billioninpropertydamage,decontamination,andprematuredecommissioninginsurance.
(e)AllNEIL-insuredplantscouldbesubjecttoassessmentsshouldlossesexceedtheaccumulatedfundsfromNEIL.
(f)EuropeanMutualAssociationforNuclearInsuranceprovides$500millioninexcessofthe$2.25billionpropertycoverageprovidedbyNEIL.
(g)Providesreplacementpowercostinsuranceintheeventofaprolongedaccidentaloutage.Weeklyindemnityisupto$4.5millionfor52weeks,whichcommencesafterthefirsteightweeksofanoutage,plusupto$3.6millionperweekforaminimumof71weeksthereafter,foratotal notexceedingthepolicylimitof$490million.Nonradiationeventsaresub-limitedto$328million.(h)Providesreplacementpowercostinsuranceintheeventofaprolongedaccidentaloutage.Thecoveragecommencesafterthefirst52weeksofinsurancecoveragefromNEILconcludes;itisaweeklyindemnityofupto$0.9millionfor71weeksinexcessofthe$3.6millionperweekset forthabove.MissouriEnergyRiskAssuranceCompanyLLCisanaffiliate;ithasreinsuredthiscoveragewiththird-partyinsurancecompanies.
SeeNote14-RelatedPartyTransactionsformoreinformationonthisaffiliatetransaction.ThePrice-AndersonActisafederallawthatlimitstheliabilityforclaimsfromanincidentinvolvinganylicensedUnitedStatescommercialnuclearenergycenter.Thelimitisbasedonthenumberoflicensedreactors.ThelimitofliabilityandthemaximumpotentialannualpaymentsareadjustedatleasteveryfiveyearsforinflationtoreflectchangesintheConsumer PriceIndex.Themostrecentfive-yearinflationaryadjustmentbecameeffectiveinSeptember2013.Ownersofanuclear reactorcoverthisexposurethroughacombinationofprivateinsuranceandmandatoryparticipationinafinancialprotection pool,asestablishedbythePrice-AndersonAct.LossesresultingfromterroristattacksonnuclearfacilitiesarecoveredunderNEIL'spolicies,subjecttoanindustrywideaggregatepolicycoveragelimitof$3.24billionwithina12-monthperiod,or$1.83billionforeventsnotinvolvingradiation
contamination.IflossesfromanuclearincidentattheCallawayenergycenterexceedthelimitsof,orarenotcoveredby,insuranceorifcoverageisunavailable,AmerenMissouriisatriskforanyuninsuredlosses.Ifaseriousnuclearincidentweretooccur,it couldhaveamaterialadverseeffectonAmeren'sandAmerenMissouri'sresultsofoperations,financialposition,orliquidity.
LeasesWeleasevariousfacilities,officeequipment,plantequipment,andrailcarsundercapitalandoperatingleases.ThefollowingtablepresentsourleaseobligationsatDecember31,2014:20152016201720182019After5YearsTotal Ameren: (a)Minimumcapitalleasepayments (b)..........................$33$33$33$32$32$360$523Lessamountrepresentinginterest..........................272727262597229Presentvalueofminimumcapitalleasepayments..............$6$6$6$6$7$263$294Operatingleases (c).......................................13121212113898Totalleaseobligations...................................$19$18$18$18$18$301$392AmerenMissouri:Minimumcapitalleasepayments (b)..........................$33$33$33$32$32$360$523Lessamountrepresentinginterest..........................272727262597229Presentvalueofminimumcapitalleasepayments..............$6$6$6$6$7$263$294Operatingleases (c).......................................11111110103790Totalleaseobligations...................................$17$17$17$16$17$300$384AmerenIllinois:
Operatingleases (c).......................................$1$1$1$1$1$1$6(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.
(b)SeePropertiesunderPartI,Item2,andNote3-PropertyandPlant,Net,ofthisreportforadditionalinformation.
(c)Amountsrelatedtocertainland-relatedleaseshaveindefinitepaymentperiods.Theannualobligationsof$2million,$1million,and$1millionforAmeren,AmerenMissouri,andAmerenIllinoisfortheseitemsareincludedinthe2015through2019columns,respectively.
134 Thefollowingtablepresentstotalrentalexpense,includedinoperatingexpenses,fortheyearsendedDecember31,2014,2013,and2012:201420132012 Ameren (a).........................................................................$37$32$33AmerenMissouri
...................................................................
322929AmerenIllinois
.....................................................................
252119(a)IncludesamountsforAmerenregistrantandnonregistrantsubsidiariesandintercompanyeliminations.OtherObligationsTosupplyaportionofthefuelrequirementsofourenergycenters,wehaveenteredintovariouslong-termcommitmentsfortheprocurementofcoal,naturalgas,nuclearfuel,andmethanegas.Wealsohaveenteredintovariouslong-termcommitmentsforpurchasedpowerandnaturalgasfordistribution.Thetablebelowpresentsourestimatedfuel,purchased power,andothercommitmentsforfuelatDecember31,2014.Ameren'sandAmerenMissouri'spurchasedpower commitmentsincludea102-megawattpowerpurchaseagreementwithawindfarmoperator,whichexpiresin2024.Ameren's andAmerenIllinois'purchasedpowercommitmentsincludetheAmerenIllinoispowerpurchaseagreementsenteredintoas partoftheIPA-administeredpowerprocurementprocess.IncludedintheOthercolumnareminimumpurchasecommitments undercontractsforequipment,designandconstruction,andmeterreadingservicesatDecember31,2014.Inaddition,the OthercolumnincludesAmeren'sandAmerenMissouri'sobligationsrelatedtocustomerenergyefficiencyprogramsunderthe MEEIAasapprovedbytheMoPSC'sDecember2012electricrateorder.AmerenMissouriexpectstoincurcostsof$71million in2015forthesecustomerenergyefficiencyprograms.SeeNote2-RateandRegulatoryMattersforadditionalinformation abouttheMEEIA.
Coal Natural Gas (a)Nuclear Fuel Purchased Power (b)MethaneGasOtherTotal Ameren: (c)2015.....................$654$222$53$190$3$195$
1,317 2016.....................65912560104378 1,029 2017.....................682855966453949 2018.....................111538255551357 2019.....................114324256554303 Thereafter.................-7113859676350 1,231 Total.....................$2,220$588$434$1,067$96$781$5,186AmerenMissouri:
2015.....................$654$39$53$21$3$128$898 2016.....................659226021339804 2017.....................682175921426809 2018.....................111118221527257 2019.....................114104221527219 Thereafter.................-2213810676183525 Total.....................$2,220$121$434$211$96$430$3,512AmerenIllinois:
2015.....................$-$183$-$169$-$29$381 2016.....................-103-83-24210 2017.....................-68-45-24137 2018.....................-42-34-24100 2019.....................-22-35-2784 Thereafter.................-49-490-167706 Total.....................$-$467$-$856$-$295$
1,618(a)Includesamountsforgenerationandfordistribution.
(b)ThepurchasedpoweramountsforAmerenandAmerenIllinoisincludeagreementsthrough2032forrenewableenergycreditswithvariousrenewableenergysuppliers.TheagreementscontainaprovisionthatallowsAmerenIllinoistoreducethequantitypurchasedintheeventthat AmerenIllinoiswouldnotbeabletorecoverthecostsassociatedwiththerenewableenergycredits.(c)IncludesamountsforAmerenregistrantandnonregistrantsubsidiaries.
135 EnvironmentalMattersWearesubjecttovariousenvironmentallawsandregulationsenforcedbyfederal,state,andlocalauthorities.Fromthebeginningphasesofsitinganddevelopmenttothe operationofexistingornewelectricgeneration, transmissionanddistributionfacilitiesandnaturalgas storage,transmissionanddistributionfacilities,our activitiesinvolvecompliancewithdiverseenvironmental lawsandregulations.Theselawsandregulationsaddress emissions,dischargestowater,waterusage,impactstoair, land,andwater,andchemicalandwastehandling.Complex andlengthyprocessesarerequiredtoobtainandrenew approvals,permits,orlicensesfornew,existingormodified facilities.Additionally,theuseandhandlingofvarious chemicalsorhazardousmaterialsrequirereleaseprevention plansandemergencyresponseprocedures.TheEPAisdevelopingandimplementingenvironmentalregulationsthatwillhaveasignificantimpact ontheelectricutilityindustry.Overtime,compliancewith theseregulationscouldbecostlyforcertaincompanies, includingAmerenMissouri,thatoperatecoal-firedpower plants.Significantnewrulesproposedorpromulgated includetheregulationofCO 2emissionsfromexistingpowerplantsthroughtheproposedCleanPowerPlanandfrom newpowerplantsthroughtherevisedNSPS;revised nationalambientairqualitystandardsforozone,fine particulates,SO 2,andNO xemissions;theCSAPR,whichrequiresfurtherreductionsofSO 2emissionsandNO xemissionsfrompowerplants;aregulationgoverning managementofCCRandCCRimpoundments;theMATS, whichrequirereductionofemissionsofmercury,toxic metals,andacidgasesfrompowerplants;revisedNSPSfor particulatematter,SO 2,andNO xemissionsfromnewsources;neweffluentstandardsapplicabletowastewater dischargesfrompowerplantsandnewregulationsunder theCleanWaterActthatcouldrequiresignificantcapital expenditures,suchasmodificationstowaterintake structuresornewcoolingtowersatAmerenMissouri's energycenters.Certainofthesenewandproposed regulations,ifadopted,arelikelytobechallengedthrough litigation,sotheirultimateimplementation,aswellasthe timingofanysuchimplementation,isuncertain.Although manydetailsofthefutureregulationsareunknown,the combinedeffectsofthenewandproposedenvironmental regulationscouldresultinsignificantcapitalexpenditures andincreasedoperatingcostsforAmerenandAmeren Missouri.Compliancewiththeseenvironmentallawsand regulationscouldbeprohibitivelyexpensive,resultinthe closureoralterationoftheoperationofsomeofAmeren Missouri'senergycenters,orrequirecapitalinvestment.
AmerenandAmerenMissouriexpectthesecostswouldbe recoverablethroughrates,subjecttoMoPSCprudence review,butthenatureandtimingofcosts,aswellasthe applicableregulatoryframework,couldresultinregulatory
lag.AsofDecember31,2014,AmerenandAmerenMissouriestimatecapitalexpenditureinvestmentsof$350millionto$400millionthrough2019tocomplywith existingenvironmentalregulations.Considerable uncertaintyremainsinthisestimate.Theactualamountof capitalinvestmentsrequiredtocomplywithexisting environmentalregulationsmayvarysubstantiallyfromthe aboveestimateduetouncertaintyastotheprecise compliancestrategiesthatwillbeusedandtheirultimate cost,amongotherthings.Thisestimatedoesnotinclude theimpactsoftheproposedCleanPowerPlan'sreduction inemissionsofCO 2,whichisdiscussedbelow.AmerenMissouri'scurrentplanforcompliancewithexistingenvironmentalregulationsforairemissions includesburningultra-low-sulfurcoalandinstallingnewor optimizingexistingpollutioncontrolequipment.Ameren MissourihastwoscrubbersatitsSiouxenergycenter, whichareusedtoreduceSO 2emissionsandotherpollutants.AmerenMissouri'scomplianceplanassumes theinstallationofadditionalcontrolsincludingmercury controltechnologyatmultipleenergycenterswithinits coal-firedfleetthrough2019.However,AmerenMissouri continuestoevaluateitsoperationsandoptionsto determinehowtocomplywiththeCSAPR,theMATS,and otherrecentlyfinalizedorproposedEPAregulations.
AmerenMissourimayberequiredtoinstalladditional pollutioncontrolswithinthenextsixto10years.Asthe CleanPowerPlanisstillsubjecttorevisionbytheEPAand implementationbythestates,AmerenMissourihasnot finalizedacomplianceplanfortheproposedrule.Thefollowingsectionsdescribethemoresignificantneworproposedenvironmentallawsandrulesand environmentalenforcementandremediationmattersthat affectorcouldaffectouroperations.CleanAirActBothfederalandstatelawsrequiresignificantreductionsinSO 2andNO xthrougheitheremissionsourcereductionsortheuseandretirementofemissionallowances.In2005,theEPAissuedregulationswith respecttoSO 2andNO xemissions(theCAIR).TheCSAPRreplacedtheCAIRandbecameeffectiveonJanuary1,2015 forSO 2andannualNO xreductions,andonMay1,2015,willbecomeeffectiveforozoneseasonNO x reductions.Therewillbefurtherreductionsin2017andinsubsequent years.AmerenMissouriexpectstohavesufficientlyreduced emissionsandhavesufficientallowancesfor2015toavoid makingexternalpurchasestocomplywithCSAPR.Ameren Missourihasalreadytakenactionstoprepareforthe implementationoftheCSAPR,includingtheinstallationof twoscrubbersatitsSiouxenergycenterandburningultra-lowsulfurcoal.AmerenMissouridoesnotexpecttomake additionalcapitalinvestmentstocomplywiththeCSAPR.
However,AmerenMissouriwillincuradditionaloperations andmaintenancecoststoloweritsemissionsatoneor moreofitsenergycentersincompliancewiththeCSAPR.
Thesehigheroperationsandmaintenancecostsare expectedtobecollectedfromcustomersthroughtheFAC orhigherbaserates.
136 InDecember2011,theEPAissuedtheMATSundertheCleanAirAct,whichrequiresemissionreductionsformercuryandotherhazardousairpollutants,suchasacid gases,tracemetals,andhydrogenchlorideemissions.The MATSdonotrequireaspecificcontroltechnologyto achievetheemissionreductions.TheMATSwillapplyto eachunitatacoal-firedpowerplant.However,incertain cases,compliancecanbeachievedbyaveragingemissions fromsimilarunitsatthesamepowerplant.Complianceis requiredbyApril2015or,withacase-by-caseextension,by April2016.AmerenMissouri'sLabadieandMeramec energycentersweregrantedextensionsandexpectto complywiththeMATSbyApril2016.AmerenMissouri expectstomakeadditionalcapitalinvestmentstocomply withtheMATS.Thesecapitalexpenditureinvestmentsare includedinAmeren'sandAmerenMissouri'sestimate above.Inaddition,AmerenMissouriwillincuradditional operationsandmaintenancecoststoloweritsemissionsat oneormoreofitsenergycentersincompliancewiththe MATS.Thesehigheroperationsandmaintenancecostsare expectedtobecollectedfromcustomersthroughtheFAC orhigherbaserates.InDecember2014,theEPApublisheditsproposaltostrengthenthe2008nationalambientairqualitystandard forozone.AfinalstandardisexpectedinOctober2015, afterwhichstatesthatdonotmeetthestandardmust developandimplementplanstoachievecompliancewith theairqualitystandard.AmerenMissouriiscurrently evaluatingtheproposedstandardandthepossibleeffects onitsoperations.GreenhouseGasRegulationBeginningin2011,greenhousegasemissionsfromstationarysources,suchaspowerplants,becamesubjecttoregulationundertheCleanAirAct.Asaresultofthis action,AmerenMissouriisrequiredtoconsiderthe emissionsofgreenhousegasesinanyairpermit
application.Recognizingthedifficultiespresentedbyregulatingatoncevirtuallyallemittersofgreenhousegases,theEPA issuedthe"TailoringRule,"whichestablishednewhigher emissionthresholdsforregulatinggreenhousegas emissionsfromstationarysources,suchaspowerplants, throughoperatingpermitsandtheNSRprograms.Therule requiresanysourcethatalreadyhasanoperatingpermitto haveprovisionsrelatingtogreenhousegasemissions addedtoitspermituponrenewal.Currently,allAmeren Missourienergycentershaveoperatingpermitsthathave beenmodifiedtoaddressgreenhousegasemissions.In June2014,theUnitedStatesSupremeCourtruledthatthe EPAmayregulategreenhousegasemissionsthrough operatingpermitsandNSRprogramsatstationarysources thatarealreadysubjecttothoseprograms,butmaynot applyoperatingpermitsandNSRprogramstonon-stationarysourcessolelyasaresultoftheirgreenhousegas emissions.AmerenMissouridoesnotexpectthedecision tohaveasignificanteffectonitsoperations.InJanuary2014,theEPApublishedproposedregulationsthatwouldsetrevisedCO 2emissionsstandardsfornewpowerplants.Theproposedstandardswould establishseparateemissionslimitsfornewnatural-gas-firedplantsandnewcoal-firedplants.InJune2014,the EPAproposedtheCleanPowerPlan,whichsetsforthCO 2emissionsstandardsthatwouldbeapplicabletoexisting powerplants.TheproposedCleanPowerPlanwould requireeachstatetodevelopplanstoachieveCO 2 emissionstandardsthattheEPAcalculatedforeachstate.TheEPA believesthattheCleanPowerPlanwouldachievea30%
reductioninthenation'sexistingpowerplantCO 2emissionsfrom2005levelsby2030.Theproposedrule alsohasinterimgoalsofaggressivelyreducingCO 2emissionsby2020.TheEPAexpectstheproposedrulewill befinalizedin2015.Iftheproposedruleisfinalized,states wouldhaveonetothreeyearstodevelopcomplianceplans.
Stateswouldbeallowedtodevelopindependentplansorto joinwithotherstatestodevelopjointplans.Ameren MissouriisevaluatingtheproposedCleanPowerPlanand thepotentialimpacttoitsoperations,includingthose relatedtoelectricsystemreliability.Significantuncertainty existsregardingthestandardforexistingpowerplants,as thefinalizedrulecouldbedifferentfromtheproposedrule andwillbesubjecttolegalchallenges,eitherofwhichcould resultintheamountandtimingofCO 2emissionstandardsbeingrevised.PreliminarystudiessuggestthatiftheproposedCleanPowerPlanweretobefinalizedinitscurrentform,Ameren Missourimayneedtoincurneworacceleratedcapital expendituresandincreasedfuelcostsinordertoachieve compliance.Asproposed,theCleanPowerPlanwould requirethestates,includingMissouriandIllinois,tosubmit complianceplansasearlyas2016.Thestates'compliance plansmightrequireAmerenMissouritoconstructnatural gas-firedcombinedcyclegenerationandrenewable generation,atacurrentlyestimatedcostofapproximately
$2billionby2020,thatAmerenMissouribelieveswould otherwisenotbenecessarytomeettheenergyneedsofits customers.Additionally,Missouri'simplementationofthe proposedrules,ifadopted,couldresultintheclosureor alterationoftheoperationofsomeofAmerenMissouri's coalandnaturalgas-firedenergycenters,whichcould resultinincreasedoperatingcostsorimpairmentofassets.
AmerenMissouriexpectssubstantiallyallofthese increasedcosts,whichcouldbeginin2017,tobe recoverable,subjecttoMoPSCprudencereview,through substantiallyhigherelectricrateschargedtoitscustomers.Futurefederalandstatelegislationorregulationsthatmandatelimitsontheemissionofgreenhousegasesmay resultinsignificantincreasesincapitalexpendituresand operatingcosts,whichcouldleadtoincreasedliquidity needsandhigherfinancingcosts.Thesecompliancecosts couldbeprohibitiveatsomeofAmerenMissouri'senergy centers,whichcouldresultintheimpairmentoflong-lived assetsifcostsarenotrecoveredthroughrates.Mandatory limitsontheemissionofgreenhousegasescouldincrease costsforitscustomersorhaveamaterialadverseeffecton Ameren'sandAmerenMissouri'sresultsofoperations, 137 financialposition,andliquidityifregulatorsdelayordenyrecoveryinratesofthesecompliancecosts.Ameren'sand AmerenMissouri'searningsmightbenefitfromincreased investmenttocomplywithgreenhousegaslimitationsto theextentthattheinvestmentsarereflectedandrecovered timelyinrateschargedtocustomers.NSRandCleanAirLitigationInJanuary2011,theDepartmentofJustice,onbehalfoftheEPA,filedacomplaintagainstAmerenMissouriintheUnitedStatesDistrictCourtfortheEasternDistrictof Missouri.TheEPA'scomplaint,asamendedinOctober 2013,allegesthatinperformingprojectsatitsRushIsland coal-firedenergycenterin2007and2010,Ameren MissouriviolatedprovisionsoftheCleanAirActand Missourilaw.InJanuary2012,thedistrictcourtgranted,in part,AmerenMissouri'smotiontodismissvariousaspects oftheEPA'spenaltyclaims.TheEPA'sclaimsfor unspecifiedinjunctivereliefremain.AmerenMissouri believesitsdefensesaremeritoriousandisdefendingitself vigorously.However,therecanbenoassurancesthatitwill besuccessfulinitsefforts.Theultimateresolutionofthismattercouldhaveamaterialadverseeffectonthefutureresultsofoperations, financialposition,andliquidityofAmerenandAmeren Missouri.Aresolutioncouldresultinincreasedcapital expendituresfortheinstallationofpollutioncontrol equipment,increasedoperationsandmaintenance expenses,andpenalties.Weareunabletopredictthe ultimateresolutionofthesemattersorthecoststhatmight beincurred.CleanWaterActInAugust2014,theEPApublishedthefinalruleapplicabletocoolingwaterintakestructuresatexistingpowerplants.Therulerequiresacase-by-caseevaluation andplanforreducingthemortalityofaquaticorganisms impingedonthefacility'sintakescreensorentrained throughtheplant'scoolingwatersystem.Implementation ofthisrulewillbeadministeredthrougheachpowerplant's waterdischargepermittingprocess.Allcoal-firedand nuclearenergycentersatAmerenMissouriaresubjectto thisrule.TherulecouldhaveanadverseeffectonAmeren's andAmerenMissouri'sresultsofoperations,financial position,andliquidityifitsimplementationrequiresthe installationofcoolingtowersorextensivemodificationsto thecoolingwatersystemsatourenergycentersandif thoseinvestmentsarenotrecoveredtimelyinelectricrates chargedtoourcustomers.InApril2013,theEPAannounceditsproposaltorevisetheeffluentlimitationguidelinesapplicabletosteam electricgeneratingunitsundertheCleanWaterAct.Effluent limitationguidelinesarenationalstandardsforwastewater dischargestosurfacewaterthatarebasedonthe effectivenessofavailablecontroltechnology.TheEPA'sproposedruleraisedseveralcomplianceoptionsthatwould prohibiteffluentdischargesofcertain,butnotall,waste streamsandimposemorestringentlimitationsoncertain componentsinwastewaterdischargesfrompowerplants.If theruleisenactedasproposed,AmerenMissouriwouldbe subjecttotherevisedlimitationsbeginningasearlyas July1,2017,butnolaterthanJuly1,2022.TheEPAis expectedtoissuefinalguidelinesinSeptember2015.AshManagementInDecember2014,theEPAissuedregulationsregardingthemanagementanddisposalofCCR,whichwillaffectfuturedisposalandhandlingcostsatAmeren Missouri'senergycenters.TheEPAregulationswillbe effective180daysafterpublicationintheFederalRegister, whichisanticipatedinearly2015.Theruleallowsforthe managementofCCRasasolidwaste,aswellasforits continuedbeneficialuses,suchasrecycling,whichcould reducetheamounttobedisposed.Theruleestablished criteriaregardingthestructuralintegrity,location,and operationofCCRimpoundmentsandlandfills.Itrequires groundwatermonitoringandclosureofimpoundmentsif thegroundwaterstandardsundertherulearenotachieved.
AmerenMissouriiscurrentlyevaluatingtheruleto determineitsimpactoncurrentmanagementofCCRand thepotentialcostsassociatedwithcompliance.Ameren Missouriisalsoevaluatingthepotentialeffectthenewrule willhaveonitsAROsassociatedwithashponds.Ameren Missouri'scapitalexpenditureplanincludesthecostof constructinglandfillsaspartofitsenvironmental complianceplan.AmerenMissouriexpectscertainofitsash pondscouldbeclosedwithinthenextfiveyears.TheEPA'sregulationsissuedinDecember2014regardingthemanagementanddisposalofCCRdonot applytoinactiveashpondsatplantsnolongerinoperation, suchastheMeredosiaandHutsonvilleenergycenters.
RemediationWeareinvolvedinanumberofremediationactionstocleanupsitesaffectedbyhazardoussubstances,asrequiredbyfederalandstatelaw.Suchlawsrequirethat responsiblepartiesfundremediationactionsregardlessof theirdegreeoffault,thelegalityoforiginaldisposal,orthe ownershipofadisposalsite.AmerenMissouriandAmeren Illinoishaveeachbeenidentifiedbyfederalorstate governmentsasapotentiallyresponsiblepartyatseveral contaminatedsites.AsofDecember31,2014,AmerenIllinoisownedorwasotherwiseresponsiblefor44formerMGPsitesin Illinois.Thesesitesareinvariousstagesofinvestigation, evaluation,remediation,andclosure.AmerenIllinois estimatesitcouldsubstantiallyconcluderemediationefforts atmostofthesesitesby2018.TheICCallowsAmeren Illinoistorecoverremediationandlitigationcosts associatedwithitsformerMGPsitesfromitselectricand naturalgasutilitycustomersthroughenvironmental 138 adjustmentrateriders.Toberecoverable,suchcostsmustbeprudentlyincurred.Costsaresubjecttoannualreviewby theICC.AsofDecember31,2014,AmerenIllinois estimatedtheobligationrelatedtotheseformerMGPsites at$250millionto$314million.AmerenandAmerenIllinois recordedaliabilityof$250milliontorepresenttheir estimatedminimumobligationforthesesites,asnoother amountwithintherangewasabetterestimate.ThescopeandextenttowhichtheseformerMGPsitesareremediatedmayincreaseasremediationefforts continue.Considerableuncertaintyremainsinthese estimates,asmanyfactorscaninfluencetheultimateactual costs,includingsitespecificunanticipatedunderground structures,thedegreetowhichgroundwateris encountered,regulatorychanges,localordinances,andsite accessibility.Theactualcostsmayvarysubstantiallyfrom theseestimates.AmerenIllinoisformerlyusedanoff-sitelandfill,whichAmerenIllinoisdidnotown,inconnectionwiththe operationofapreviously-ownedenergycenter.Ameren Illinoiscouldberequiredtoperformcertainmaintenance activitiesatthatlandfill.AsofDecember31,2014,Ameren Illinoisestimatedtheobligationrelatedtothissiteat
$0.5millionto$6million.AmerenIllinoisrecordeda liabilityof$0.5milliontorepresentitsestimatedminimum obligationforthissite,asnootheramountwithintherange wasabetterestimate.AmerenIllinoisisalsoresponsible forthecleanupofsomeundergroundstoragetanksanda watertreatmentplantinIllinois.AsofDecember31,2014, AmerenIllinoisrecordedaliabilityof$0.7millionto representitsbestestimateoftheobligationforthesesites.In2008,theEPAissuedanadministrativeordertoAmerenMissouripertainingtoaformercoaltardistillery operatedbyKoppersCompanyoritspredecessorand successorcompanies.WhileAmerenMissouriisthecurrent ownerofthesite,whichislocatedinSt.Louis,Missouri,it didnotconductanyofthemanufacturingoperations involvingcoaltaroritsbyproducts.AmerenMissouri,along withtwootherpotentiallyresponsibleparties,areperforming asiteinvestigation.AsofDecember31,2014,Ameren Missouriestimateditsobligationat$2millionto$5million.
AmerenMissourirecordedaliabilityof$2millionto representitsestimatedminimumobligation,asnoother amountwithintherangewasabetterestimate.AmerenMissourialsoparticipatedintheinvestigationofvarioussiteslocatedinSauget,Illinois.In2000,theEPA notifiedAmerenMissouriandnumerousothercompanies, includingSolutia,Inc.,thatformerlandfillsandlagoonsat thosesitesmaycontainsoilandgroundwatercontamination.
ThesesitesareknownasSaugetArea2.Fromabout1926 until1976,AmerenMissourioperatedanenergycenter adjacenttoSaugetArea2.AmerenMissouricurrentlyownsa parcelofpropertyatSaugetArea2thatwasonceusedasa landfill.UnderthetermsofanAdministrativeOrderon Consent,AmerenMissourijoinedwithotherpotentially responsiblepartiestoevaluatetheextentofpotential contaminationwithrespecttoSaugetArea2.InDecember2013,theEPAissueditsrecordofdecisionforSaugetArea2approvingtheinvestigationand theremediationalternativesrecommendedbythe potentiallyresponsibleparties.Furthernegotiationamong thepotentiallyresponsiblepartieswilldeterminehowto fundtheimplementationoftheEPA-approvedcleanup remedies.AsofDecember31,2014,AmerenMissouri estimateditsobligationrelatedtoSaugetArea2at
$1millionto$2.5million.AmerenMissourirecordeda liabilityof$1milliontorepresentitsestimatedminimum obligation,asnootheramountwithintherangewasa betterestimate.In2012,AmerenMissourisignedanadministrativeorderwiththeEPAandagreedtoinvestigatesoiland groundwaterconditionsatanAmerenMissouri-owned substationinSt.Charles,Missouri.AsofDecember31, 2014,AmerenMissouriestimatedtheobligationrelatedto thiscleanupat$1.6millionto$4.5million.Ameren Missourirecordedaliabilityof$1.6milliontorepresentits estimatedminimumobligationforthissite,asnoother amountwithintherangewasabetterestimate.Ouroperationsorthoseofourpredecessorcompaniesinvolvetheuseof,disposalof,andinappropriate circumstances,thecleanupofsubstancesregulatedunder environmentallaws.Weareunabletodeterminewhether suchpracticeswillresultinfutureenvironmental commitmentsorwillaffectourresultsofoperations, financialposition,orliquidity.Pumped-storageHydroelectricFacilityBreachInDecember2005,therewasabreachoftheupperreservoiratAmerenMissouri'sTaumSaukpumped-storagehydroelectricenergycenter.Thisresultedinsignificant floodinginthelocalarea,whichdamagedastatepark.
AmerenMissourihadliabilityinsurancecoverageforthe TaumSaukincident,subjecttocertainlimitsand
deductibles.In2010,AmerenMissourisuedaninsurancecompanythatwasprovidingAmerenMissouriwithliabilitycoverage onthedateoftheTaumSaukincident.Inthelitigation, AmerenMissouriclaimsthattheinsurancecompany breacheditsdutytoindemnifyAmerenMissouriforlosses resultingfromtheincident.InSeptember2014,theUnited StatesDistrictCourtfortheEasternDistrictofMissouri orderedthecasetobetransferredtotheUnitedStates DistrictCourtfortheSouthernDistrictofNewYorkfortrial.
Thetransferorderhasbeenstayedpendingresolutionof AmerenMissouri'sOctober2014appealofthatordertothe UnitedStatesCourtofAppealsfortheEighthCircuit.InJune2014,AmerenMissourireachedasettlementwithanothergroupofinsurerswhoprovidedAmeren MissouriwithliabilitycoverageonthedateoftheTaum Saukincident.Inaccordancewiththatsettlement,Ameren Missourireceivedapaymentof$27million.AsofDecember31,2014,AmerenMissourihadaninsurancereceivableof$41million.Itultimatelyexpectsto collectthisreceivablefromtheremaininginsurance 139 companyinthependinglitigationdescribedabove.Thisreceivableisincludedin"Otherassets"onAmeren'sand AmerenMissouri'sbalancesheetsasofDecember31, 2014.Ameren'sandAmerenMissouri'sresultsof operations,financialposition,andliquiditycouldbe adverselyaffectedifAmerenMissouri'sremainingliability insuranceclaimisnotpaid.Asbestos-relatedLitigationAmeren,AmerenMissouri,andAmerenIllinoishavebeennamed,alongwithnumerousotherparties,inanumberoflawsuitsfiledbyplaintiffsclaimingvarying degreesofinjuryfromasbestosexposureatourpresentor formerenergycenters.MosthavebeenfiledintheCircuit CourtofMadisonCounty,Illinois.Thetotalnumberof defendantsnamedineachcasevaries,with78asthe averagenumberofpartiesasofDecember31,2014.Each lawsuitseeksunspecifieddamagesthat,ifawardedattrial, typicallywouldbesharedamongthevariousdefendants.Thefollowingtablepresentsthependingasbestos-relatedlawsuitsfiledagainsttheAmerenCompaniesasof December31,2014:
Ameren Ameren Missouri AmerenIllinoisTotal (a)145577 0(a)TotaldoesnotequalthesumofthesubsidiaryunitlawsuitsbecausesomeofthelawsuitsnamemultipleAmerenentitiesas defendants.AtDecember31,2014,Ameren,AmerenMissouri,andAmerenIllinoishadliabilitiesof$12million,$5million,and$7million,respectively,recordedtorepresenttheirbest estimatesoftheirobligationsrelatedtoasbestosclaims.AmerenIllinoishasatariffridertorecoverthecostsofIPasbestos-relatedlitigationclaims,subjecttothe followingterms:90%ofthecashexpendituresinexcessof theamountincludedinbaseelectricratesistoberecovered fromatrustfundthatwasestablishedwhenAmeren acquiredIP.AtDecember31,2014,thetrustfundbalance was$22million,includingaccumulatedinterest.Ifcash expendituresarelessthantheamountinbaserates, AmerenIllinoiswillcontribute90%ofthedifferencetothe trustfund.Oncethetrustfundisdepleted,90%ofallowed cashexpendituresinexcessofbaserateswillberecovered throughchargesassessedtocustomersunderthetariff rider.Theriderwillpermitrecoveryfromelectriccustomers withinIP'shistoricalserviceterritory.AmerenIllinoisMunicipalTaxesAmerenIllinoispreviouslyreceivedtaxliabilitynoticesfromeightmunicipalities,includingtheCityofO'Fallon,allegingthatAmerenIllinoisfailedtocollectprior-period taxesfromcertaincustomersineachmunicipality.InNovember2014,AmerenIllinoisreachedasettlement agreementwiththeCityofO'Fallonandpaid$1millionfor theprior-periodtaxes.Withrespecttothesevenother communities,AmerenIllinoisbelievesitsdefensestothe allegationsaremeritoriousanditspotentiallossis
immaterial.NOTE16-DIVESTITURETRANSACTIONSANDDISCONTINUEDOPERATIONSOnDecember2,2013,AmerencompletedthedivestitureofNewAERtoIPHinaccordancewiththetransactionagreementbetweenAmerenandIPHdated March14,2013,asamendedbyaletteragreementdated December2,2013.Amerenretainedcertainpensionandpostretirementbenefitobligationsassociatedwithcurrentandformer employeesofAER,withtheexceptionofthepensionand postretirementbenefitobligationsassociatedwithcurrent andformeremployeesofEEI,whichwereassumedbyIPH.
AmerenretainedtheMeredosiaandHutsonvilleenergy centers,includingtheirAROs.Theseenergycenterswere abandonedandhadanimmaterialpropertyandplantasset balanceasofDecember31,2014.TheEPA'sregulations issuedinDecember2014regardingthemanagementand disposalofCCR,asdiscussedinNote15-Commitments andContingencies,donotapplytoinactiveashpondsat plantsnolongerinoperation,suchastheMeredosiaand Hutsonvilleenergycenters.AllotherAROsassociatedwith AERwereassumedbyNewAERorbyRocklandCapital,the third-partybuyeroftheGrandTowerenergycenter,as discussedbelow.ThetransactionagreementwithIPH,asamended,providesthatiftheElgin,GibsonCity,andGrandTower gas-firedenergycentersaresubsequentlysoldbyMedina ValleyandifMedinaValleyreceivesadditionalproceeds fromsuchsale,MedinaValleywillpayGencoanyproceeds fromsuchsale,netoftaxesandotherexpenses,inexcess ofthe$137.5millionpreviouslypaidtoGenco.On January31,2014,MedinaValleycompletedthesaleofthe Elgin,GibsonCity,andGrandTowergas-firedenergy centerstoRocklandCapitalforatotalpurchasepriceof
$168million.TheagreementwithRocklandCapitalrequires
$17millionofthepurchasepricetobeheldinescrowuntil January31,2016,tofundcertainindemnityobligations,if any,ofMedinaValley.TheRocklandCapitalescrow receivablebalanceandthecorrespondingpayabledueto GencoisreflectedonAmeren'sDecember31,2014, consolidatedbalancesheetin"Otherassets"andin"Other deferredcreditsandliabilities,"respectively.MedinaValley expectstopayGencoanyremainingportionoftheescrow balanceonJanuary31,2016.Amerendidnotrecordagain fromitssaleoftheElgin,GibsonCity,andGrandTower gas-firedenergycenters.
140 DiscontinuedOperationsPresentationInMarch2013,AmerendeterminedthatNewAERandtheElgin,GibsonCity,andGrandTowergas-firedenergycentersqualifiedfordiscontinuedoperationspresentation.Inaddition,inDecember2013,coincidingwiththecompletionofthedivestitureofNewAERtoIPH,AmerendeterminedthattheMeredosiaandHutsonvilleenergycenters,whichwerebothnot operating,hadbeenabandonedandalsoqualifiedfordiscontinuedoperationspresentation.AmerenhasbeguntodemolishtheHutsonvilleenergycenterandexpectstodemolishtheMeredosiaenergycenterthereafter.Thedisposalgroupshavebeen aggregatedinthedisclosuresbelow.ThefollowingtablepresentsthecomponentsofdiscontinuedoperationsinAmeren's consolidatedstatementofincome(loss)fortheyearsendedDecember31,2014,2013,and2012:Yearended201420132012Operatingrevenues
...........................................................
$1$1,037$1,047Operatingexpenses
...........................................................
(2)(1,207)(a)(3,474)(b)Operatingincome(loss)
........................................................
(1)(170)(2,427)Otherincome(loss)
...........................................................
-(1)-Interestcharges
..............................................................
-(39)(56)Income(loss)beforeincometaxes
...............................................
(1)(210)(2,483)Incometax(expense)benefit
....................................................
-(13)987Income(loss)fromdiscontinuedoperations,netoftaxes
..............................$(1)$(223)$(1,496)(a)Includesa$201millionpretaxlossondisposalrelatingtotheNewAERdivestiture.(b)Includesanoncashpretaxassetimpairmentchargeof$2.58billiontoreducethecarryingvalueofAER'senergycenterstotheirestimatedfairvalueunderheldandusedaccountingguidance.Ameren'sresultsofoperationsfortheyearendedDecember31,2014,includeadjustmentsfortheNewAERnetworkingcapitalamountowedtoIPHandforcertain contingentliabilitiesassociatedwiththeNewAERdivestiture.
In2014,Amerenpaid$13milliontoIPHforthefinalworking capitaladjustmentandaportionofthepreviously-recorded contingentliabilities.Additionally,Amerenrecognizedthe operatingrevenuesandoperatingexpensesassociatedwith theElgin,GibsonCity,andGrandTowergas-firedenergy centerspriortothecompletionoftheirsaletoRockland CapitalonJanuary31,2014.ThefinaltaxbasisoftheAER disposalgroupandtherelatedtaxbenefitresultingfromthe transactionwithIPHaredependentupontheresolutionoftax mattersunderaudit.Itisreasonablypossibleinthenext12 monthsthesetaxauditswillbecompleted.Asaresult,tax expenseandbenefitsultimatelyrealizedfromthedivestitures maydiffermateriallyfromthoserecordedasofDecember31, 2014,includingthefinalresolutionofAmeren'suncertaintax
positions.AmerenrecordedapretaxchargetoearningsrelatedtotheNewAERdivestitureof$201millionfortheyearended December31,2013.Thelosswasrecordedin"Operating expenses"withinthecomponentsofthediscontinued operationsstatementofincome(loss).Amerendidnot receiveanycashproceedsfromIPHforthedivestitureof NewAER.In2013,Amerenadjustedtheaccumulated deferredincometaxesonitsconsolidatedbalancesheetto reflecttheexcessoftaxbasisoverfinancialreportingbasis ofitsstockinvestmentinAER.Thischangeinbasis resultedinadiscontinuedoperationsdeferredtaxexpense of$99million,whichwaspartiallyoffsetbytheexpected taxbenefitsof$86millionrelatedtothepretaxlossfrom discontinuedoperations,includingthelossondisposal, duringtheyearendedDecember31,2013.Asdiscussedabove,onJanuary31,2014,MedinaValleycompletedthesaleoftheElgin,GibsonCity,and GrandTowergas-firedenergycenterstoRocklandCapital foratotalpurchasepriceof$168million.Amerendidnot recognizeagainfromthethird-partysaletoRockland Capitalforanyvalueinexcessofits$137.5millioncarrying valueforthisdisposalgroupbecauseanyexcessamount thatMedinaValleymayreceive,netoftaxesandother expenses,overthecarryingvalue,willultimatelybepaidto GencopursuanttothetransactionagreementwithIPH.NewAERandtheElgin,GibsonCity,andGrandTowerenergycenterswereimpairedunderheldandused accountingguidancein2012.Inearly2012,theobservable marketpriceforpowerfordeliveryinthatyearandinfuture yearsintheMidwestsharplydeclinedbelow2011levels.As aresultofthissharpdeclineinthemarketpriceofpower andtherelatedimpactonelectricmargins,Ameren evaluated,duringthefirstquarterof2012,whetherthe carryingvaluesofMerchantGenerationcoal-firedenergy centerswererecoverable.AERG'sDuckCreekenergy center'scarryingvalueexceededitsestimatedundiscounted futurecashflows.Asaresult,Amerenrecordedanoncash pretaxassetimpairmentchargeof$628milliontoreduce thecarryingvalueofthatenergycentertoitsestimatedfair valueduringthefirstquarterof2012.InDecember2012, Amerendeterminedthattheestimatedundiscountedcash flowsduringtheperiodinwhichitexpectedtocontinueto ownitsMerchantGenerationenergycenterswouldbe insufficienttorecoverthecarryingvalueofthoseenergy centers.Accordingly,Amerenrecordedanoncashpretax impairmentchargeof$1.95billioninthefourthquarterof
2012.141 ThefollowingtablepresentsthecarryingamountsofthecomponentsofassetsandliabilitiessegregatedonAmeren'sconsolidatedbalancesheetsasdiscontinuedoperationsatDecember31,2014and2013:December31,2014December31,2013AssetsofdiscontinuedoperationsAccountsreceivableandunbilledrevenue
............................................
$-$5Materialsandsupplies
...........................................................
-5Propertyandplant,net
...........................................................
-142Accumulateddeferredincometaxes,net (a)............................................
15 13Totalassetsofdiscontinuedoperations
................................................$15$165LiabilitiesofdiscontinuedoperationsAccountspayableandothercurrentobligations
.......................................
$1$5Assetretirementobligations (b).....................................................
32 40Totalliabilitiesofdiscontinuedoperations
..............................................$33$45(a)TheDecember31,2014balanceprimarilyconsistsofdeferredincometaxassetsrelatedtotheabandonedMeredosiaandHutsonvilleenergy centers.(b)IncludesAROsassociatedwiththeabandonedMeredosiaandHutsonvilleenergycentersof$32millionand$31millionatDecember31,2014and2013,respectively.AmerenhascontinuingtransactionswithNewAER.AmerenIllinoishaspowersupplyagreementswithMarketingCompany,whicharearesultofthepower procurementprocessinIllinoisadministeredbytheIPA,as requiredbytheIllinoisPublicUtilitiesAct.AmerenIllinois continuestopurchasepowerandtopurchasetrade receivablesasrequiredbyIllinoislaw.AmerenIllinoisand ATXIcontinuetoselltransmissionservicestoMarketing Company.Also,thetransactionagreementrequiresAmeren (parent)tomaintaincertainguaranteesdiscussedbelow.
Immediatelypriortothetransactionagreementclosing,the moneypoolborrowingsthroughwhichAmerenprovided cashcollateraltoMarketingCompanywereconvertedtoa notepayabletoAmeren,withinterest,onDecember2, 2015,orsooner,ascashcollateralrequirementsare reduced.Amerenhasdeterminedthatthecontinuingcash flowsgeneratedbythesearrangementsarenotsignificant and,accordingly,arenotdeemedtobedirectcashflowsof thedivestedbusiness.Additionally,thesearrangementsdo notprovideAmerenwiththeabilitytosignificantlyinfluence theoperatingresultsofNewAER.Amerendidnothave significantcontinuinginvolvementwithormaterialcash flowsfromtheElgin,GibsonCity,orGrandTowerenergy centersaftertheirsale.PursuanttotheIPHtransactionagreement,asamended,Amerenisobligatedtopayupto$29millionfor certaincontingentliabilitiesasofDecember31,2014, whichwereincludedin"Othercurrentliabilities"on Ameren'sDecember31,2014consolidatedbalancesheet.ThenotereceivablefromMarketingCompanyrelatedtothecashcollateralsupportprovidedtoNewAERwas
$12millionand$18millionatDecember31,2014and 2013,respectively,andwasreflectedonAmeren's consolidatedbalancesheetin"Miscellaneousaccountsand notesreceivable"atDecember31,2014.Thisreceivableis duetoAmeren,withinterest,onDecember2,2015,or soonerascashcollateralrequirementsarereduced.In addition,asofDecember31,2014,ifAmeren'scredit ratingshadbeenbelowinvestmentgrade,Amerencould havebeenrequiredtopostadditionalcashcollateralinsupportofNewAERintheamountof$26million,which includes$11millioncurrentlycoveredbyAmeren guarantees.ThiscashcollateralsupportispartofAmeren's obligationtoprovidecertainlimitedcreditsupporttoNew AERuntilDecember2,2015,asdiscussedbelow.AmerenGuaranteesandLettersofCreditTheIPHtransactionagreement,asamended,requiresAmerentomaintainitsfinancialobligationswithrespecttoallcreditsupportprovidedtoNewAERasofthe December2,2013closingdateofthedivestiture.Ameren mustalsoprovidesuchadditionalcreditsupportas requiredbycontractsenteredintopriortotheclosingdate, ineachcaseuntilDecember2,2015.IPHshallindemnify AmerenforanypaymentsAmerenmakespursuanttothese creditsupportobligationsifthecounterpartydoesnot returnthepostedcollateraltoAmeren.IPH's indemnificationobligationissecuredbycertainAERGand Gencoassets.Inaddition,Dynegyhasprovidedalimited guaranteeof$25milliontoAmerenpursuanttowhich Dynegywill,amongotherthings,guaranteeIPH's indemnificationobligationsuntilDecember2,2015.Inadditiontothe$29millionofcontingentliabilitiesrecordedonAmeren'sDecember31,2014consolidated balancesheet,Amerenhadatotalof$114millionin guaranteesoutstandingforNewAERthatwerenotrecorded onAmeren'sDecember31,2014consolidatedbalance sheet,whichincluded:
$106millionrelatedtoguaranteessupportingMarketingCompanyforphysicallyandfinancially settledpowertransactionswithitscounterpartiesthat wereinplaceattheDecember2,2013closingofthe divestiture,aswellasforMarketingCompany'sclearing brokerandotherserviceagreements.IfMarketing Companydidnotfulfillitsobligationstothese counterpartieswhohadactiveopenpositionsasof December31,2014,Amerenwouldhavebeenrequired underitsguaranteestoprovide$11milliontothe
counterparties.
142
$8millionrelatedtorequirementsforleaseagreementsandpotentialenvironmentalobligations.IfNewAER hadnotfulfilleditsleaseobligationasofDecember31, 2014,Amerenwouldhavebeenrequiredtoprovide approximately$7milliontotheleasingcounterparty.Additionally,atDecember31,2014,Amerenhadissuedlettersofcredittotaling$9millionascreditsupport onbehalfofNewAER.Amerenhasnotrecordedareserveforthesecontingentobligationsbecauseitdoesnotbelievea paymentwithrespecttoanyoftheseguaranteesorletters ofcreditwasprobableasofDecember31,2014.NOTE17-SEGMENTINFORMATIONAmerenhastworeportablesegments:AmerenMissouriandAmerenIllinois.AmerenMissouriandAmeren Illinoiseachhaveonereportablesegment.TheAmeren MissourisegmentforbothAmerenandAmerenMissouri includesalltheoperationsofAmerenMissouriasdescribed inNote1-SummaryofSignificantAccountingPolicies.
TheAmerenIllinoissegmentforbothAmerenandAmeren IllinoisconsistsofalloftheoperationsofAmerenIllinoisas describedinNote1-SummaryofSignificantAccounting Policies.ThecategorycalledOtherprimarilyincludes Amerenparentcompanyactivities,AmerenServices,and ATXI.TheOthercategoryalsoincludescertaincorporate activitiespreviouslyincludedintheMerchantGeneration segment.SeeNote16-DivestitureTransactionsand DiscontinuedOperationsforadditionalinformation.ThefollowingtablepresentsinformationaboutthereportedrevenuesandspecifieditemsreflectedinAmeren'snetincomeattributabletoAmerenCorporationandcapitalexpendituresfromcontinuingoperationsfortheyearsended December31,2014,2013,and2012,andtotalassetsincontinuingoperationsasofDecember31,2014,2013,and2012:
Ameren Missouri AmerenIllinoisOther IntersegmentEliminationsConsolidated 2014Externalrevenues
..............................................$3,526$2,496$31$-$6,053Intersegmentrevenues
..........................................2722(31)-Depreciationandamortization
....................................4732639-745Interestanddividendincome
.....................................2872-37Interestcharges
...............................................21111218-341Incometaxes
.................................................2291435-377Netincome(loss)attributabletoAmerenCorporationfromcontinuing operations
.................................................390201(4)-587Capitalexpenditures
............................................747835203 (a)-1,785Totalassets
..................................................13,5418,381942(203)22,661 (b)2013 Externalrevenues..............................................$3,516$2,307$15$-$5,838Intersegmentrevenues..........................................2542 (31)-Depreciationandamortization....................................4542439-706Interestanddividendincome.....................................2721-30Interestcharges...............................................21014345-398Incometaxes(benefit)..........................................242110(41)-311Netincome(loss)attributabletoAmerenCorporationfromcontinuing operations.................................................395160(43)-512Capitalexpenditures............................................64870130 (a)-1,379Totalassets
..................................................12,9047,454752(233)20,877 (b)2012 Externalrevenues..............................................$3,252$2,524$5$-$5,781Intersegmentrevenues..........................................2013 (24)-Depreciationandamortization....................................44022112-673Interestanddividendincome.....................................32---32Interestcharges...............................................22312940-392Incometaxes(benefit)..........................................25294(39)-307Netincome(loss)attributabletoAmerenCorporationfromcontinuing operations.................................................416141(41)-516Capitalexpenditures............................................59544226 (a)-1,063Totalassets
..................................................13,0437,2821,228(934)20,619 (b)(a)Includestheeliminationofintercompanytransfers.
(b)Excludestotalassetsfromdiscontinuedoperationsof$15million,$165million,and$1,611millionasofDecember31,2014,2013,and2012, respectively.
143 SELECTEDQUARTERLYINFORMATION(Unaudited)(Inmillions,exceptpershareamounts)
Ameren 2014 2013Quarterended (a)March31June30September30December31March31June30September30December31Operatingrevenues
.....................$1,594$1,419$1,670$1,370$1,475$1,403$1,638$1,322Operatingincome
.......................246322561125185261567171Netincome(loss)
.......................9815029549(143)9630438NetincomeattributabletoAmerenCorporation-continuingoperations
......$97$150$294$46$54$105$305$48Netincome(loss)attributabletoAmerenCorporation-discontinuedoperations
....(1)(1)(1)2(199)(10)(3)(11)Netincome(loss)attributabletoAmerenCorporation
...................$96$149$293$48$(145)$95$302$37Earningspercommonshare-basic-continuingoperations
.................$0.40$0.62$1.21$0.19$0.22$0.44$1.26$0.19Earnings(loss)percommonshare-basic-discontinuedoperations
................-(0.01)-0.01(0.82)(0.05)(0.01)(0.04)Earnings(loss)percommonshare-basic...$0.40$0.61$1.21$0.20$(0.60)$0.39$1.25$0.15Earningspercommonshare-diluted-continuingoperations
.................$0.40$0.62$1.20$0.19$0.22$0.44$1.25$0.19Earnings(loss)percommonshare-diluted-discontinuedoperations
................-(0.01)-0.01(0.82)(0.05)(0.01)(0.04)Earnings(loss)percommonshare-diluted.............................$0.40$0.61$1.20$0.20$(0.60)$0.39$1.24$0.15(a)Thesumofquarterlyamounts,includingpershareamounts,maynotequalamountsreportedforyear-to-dateperiods.Thisisduetotheeffectsofroundingandtochangesinthenumberofweighted-averagesharesoutstandingeachperiod.AmerenMissouriQuarterended Operating Revenues Operating Income Net Income (Loss)NetIncome(Loss)Availableto Common StockholderMarch31,2014
.............................$817$119$48$47March31,2013
.............................7961114140June30,2014
..............................
900 243 127 126June30,2013
..............................8891798584September30,2014
.........................
1,097 394 223 222September30,2013
.........................
1,093 417 239 238December31,2014
..........................
739 29 (5)(5)December31,2013..........................763963333AmerenIllinois Quarterended Operating Revenues Operating Income Net IncomeNetIncomeAvailableto Common StockholderMarch31,2014
..................................$774$120$54$53March31,2013..................................684853231June30,2014
...................................519752928June30,2013...................................516873231September30,2014
..............................5721587575September30,2013..............................5471587777December31,2014
...............................633974645December31,2013...............................564852221ITEM9.CHANGESINANDDISAGREEMENTSWITHACCOUNTANTSONACCOUNTINGANDFINANCIALDISCLOSURE None.144 ITEM9A.CONTROLSANDPROCEDURES(a)EvaluationofDisclosureControlsandProceduresAsofDecember31,2014,evaluationswereperformedunderthesupervisionandwiththeparticipationofmanagement,includingtheprincipalexecutiveofficerandprincipalfinancialofficerofeachoftheAmerenCompanies,oftheeffectivenessofthedesignandoperationofsuchregistrant'sdisclosurecontrolsandprocedures(asdefinedinRules13a-15(e)and15d-15(e) oftheExchangeAct).Basedonthoseevaluations,asofDecember31,2014,theprincipalexecutiveofficerandprincipal financialofficerofeachoftheAmerenCompaniesconcludedthatsuchdisclosurecontrolsandproceduresareeffectiveto provideassurancethatinformationrequiredtobedisclosedinsuchregistrant'sreportsfiledorsubmittedundertheExchangeActisrecorded,processed,summarized,andreportedwithinthetimeperiodsspecifiedintheSEC'srulesandformsandsuch informationisaccumulatedandcommunicatedtoitsmanagement,includingitsprincipalexecutiveandprincipalfinancial officers,toallowtimelydecisionsregardingrequireddisclosure.(b)Management'sReportonInternalControloverFinancialReportingManagementisresponsibleforestablishingandmaintainingadequateinternalcontroloverfinancialreporting,assuchtermisdefinedinExchangeActRules13a-15(f)and15d-15(f).Underthesupervisionofandwiththeparticipationofmanagement,includingtheprincipalexecutiveofficerandprincipalfinancialofficer,anevaluationwasconductedofthe effectivenessofeachoftheAmerenCompanies'internalcontroloverfinancialreportingbasedontheframeworkin InternalControl-IntegratedFramework(2013)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO).Aftermakingthatevaluation
,managementconcludedthateachoftheAmerenCompanies'internalcontroloverfinancialreportingwaseffectiveasofDecember31,2014.TheeffectivenessofAmeren'sinternalcontroloverfinancial reportingasofDecember31,2014,hasbeenauditedbyPricewaterhouseCoopersLLP,anindependentregisteredpublic accountingfirm,asstatedinitsreporthereinunderPartII,Item8.Thisannualreportdoesnotincludeanattestationreportof AmerenMissouri'sorAmerenIllinois'(theSubsidiaryRegistrants)independentregisteredpublicaccountingfirmregarding internalcontroloverfinancialreporting.Management'sreportforeachoftheSubsidiaryRegistrantsisnotsubjectto attestationbyanindependentregisteredpublicaccountingfirm.Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenessintofutureperiodsaresubjecttotheriskthatinternalcontrolsmightbecome inadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmightdeteriorate.(c)ChangeinInternalControlTherehasbeennochangeintheAmerenCompanies'internalcontroloverfinancialreportingduringtheirmostrecentfiscalquarterthathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theirinternalcontroloverfinancial
reporting.ITEM9B.OTHERINFORMATIONTheAmerenCompanieshavenoinformationreportableunderthisitemthatwasrequiredtobedisclosedinareportonSECForm8-Kduringthefourthquarterof2014thathasnotpreviouslybeenreportedonanSECForm8-K.PARTIIIITEM10.DIRECTORS,EXECUTIVEOFFICERS,ANDCORPORATEGOVERNANCEInformationrequiredbyItems401,405,406and407(c)(3),(d)(4)and(d)(5)ofSECRegulationS-KforAmerenwillbeincludedinitsdefinitiveproxystatementfor its2015annualmeetingofshareholdersfiledpursuantto SECRegulation14A;itisincorporatedhereinbyreference.
InformationrequiredbytheseSECRegulationS-Kitemsfor AmerenMissouriandAmerenIllinoiswillbeincludedin eachcompany'sdefinitiveinformationstatementforits 2015annualmeetingofshareholdersfiledpursuanttoSEC Regulation14C;itisincorporatedhereinbyreference.
Specifically,referenceismadetothefollowingsectionsof Ameren'sdefinitiveproxystatementandeachofAmeren Missouri'sandAmerenIllinois'definitiveinformation statement:"InformationConcerningNomineestotheBoard ofDirectors,""Section16(a)BeneficialOwnership ReportingCompliance,""CorporateGovernance"and "BoardStructure."InformationconcerningexecutiveofficersoftheAmerenCompaniesrequiredbyItem401ofSECRegulation S-Kisreportedunderaseparatecaptionentitled"Executive OfficersoftheRegistrants"inPartIofthisreport.AmerenMissouriandAmerenIllinoisdonothaveseparatelydesignatedstandingauditcommittees,butinstead useAmeren'sauditandriskcommitteetoperformsuch committeefunctionsfortheirboardsofdirectors.These companiesdonothavesecuritieslistedontheNYSEand thereforearenotsubjecttotheNYSElistingstandards.
WalterJ.GalvinservesaschairmanofAmeren'sauditand riskcommitteeandCatherineS.Brune,EllenM.Fitzsimmons andStephenR.Wilsonserveasmembers.Theboardof directorsofAmerenhasdeterminedthatWalterJ.Galvin qualifiesasanauditcommitteefinancialexpertandthatheis "independent"asthattermisusedinSECRegulation14A.
145 Also,onthesamebasisasreportedabove,theboardsofdirectorsofAmerenMissouriandAmerenIllinoisusethenominatingandcorporategovernancecommitteeof Ameren'sboardofdirectorstoperformsuchcommittee functions.Thiscommitteeisresponsibleforthenomination ofdirectorsandcorporategovernancepractices.Ameren's nominatingandcorporategovernancecommitteewill considerdirectornominationsfromshareholdersin accordancewithitsPolicyRegardingNominationsof Directors,whichcanbefoundonAmeren'swebsite:
www.ameren.com.Toencourageethicalconductinitsfinancialmanagementandreporting,Amerenhasadoptedacodeof ethicsthatappliestotheprincipalexecutiveofficer,the president,theprincipalfinancialofficer,theprincipalaccountingofficer,thecontroller,andthetreasurerofeach oftheAmerenCompanies.Amerenhasalsoadoptedacode ofbusinessconductthatappliestothedirectors,officers, andemployeesoftheAmerenCompanies.Itisreferredto asthePrinciplesofBusinessConduct.TheAmeren CompaniesmakeavailablefreeofchargethroughAmeren's website(www.ameren.com)theCodeofEthicsandthe PrinciplesofBusinessConduct.Anyamendmenttothe CodeofEthicsorthePrinciplesofBusinessConductand anywaiverfromaprovisionoftheCodeofEthicsorthe PrinciplesofBusinessConductasitrelatestotheprincipal executiveofficer,thepresident,theprincipalfinancial officer,theprincipalaccountingofficer,thecontrollerand thetreasurerofeachoftheAmerenCompanieswillbe postedonAmeren'swebsitewithinfourbusinessdays followingthedateoftheamendmentorwaiver.ITEM11.EXECUTIVECOMPENSATIONInformationrequiredbyItems402and407(e)(4)and(e)(5)ofSECRegulationS-KforAmerenwillbeincludedinitsdefinitiveproxystatementforits2015annualmeetingofshareholdersfiledpursuanttoSECRegulation14A;itisincorporated hereinbyreference.InformationrequiredbytheseSECRegulationS-KitemsforAmerenMissouriandAmerenIllinoiswillbe includedineachcompany'sdefinitiveinformationstatementforits2015annualmeetingofshareholdersfiledpursuanttoSEC Regulation14C;itisincorporatedhereinbyreference.Specifically,referenceismadetothefollowingsectionsofAmeren's definitiveproxystatementandeachofAmerenMissouri'sandAmerenIllinois'definitiveinformationstatement:"Executive Compensation"and"HumanResourcesCommitteeInterlocksandInsiderParticipation."ITEM12.SECURITYOWNERSHIPOFCERTAINBENEFICIALOWNERSANDMANAGEMENTANDRELATEDSTOCKHOLDER MATTERSEquityCompensationPlanInformationThefollowingtablepresentsinformationasofDecember31,2014,withrespecttothesharesofAmeren'scommonstockthatmaybeissuedunderitsexistingequitycompensationplans.PlanCategoryColumnANumberofSecuritiesToBeIssuedUponExerciseofOutstandingOptions,WarrantsandRightsColumnB Weighted-AverageExercisePriceofOutstandingOptions,WarrantsandRightsColumnCNumberofSecuritiesRemainingAvailableforFutureIssuanceEquityCompensationPlans(excludingsecuritiesreflectedinColumnA)Equitycompensationplansapprovedbysecurityholders (a).....................2,335,780(b)7,964,166Equitycompensationplansnotapprovedbysecurityholders
......................
---Total.................................
2,335,780 (b)7,964,166(a)Consistsofthe2006IncentivePlan,whichwasapprovedbyshareholdersinMay2006,andthe2014IncentivePlan,whichwasapprovedbyshareholdersinApril2014,andexpiresApril2024.The2014Planreplacedthe2006PlanforanynewgrantsmadeafterApril24,2014.Pursuanttograntsofperformanceshareunits(PSUs)underthe2006Plan,649,018ofthesecuritiesrepresentPSUsthatvestedasof December31,2014(includingaccruedandreinvesteddividends),and1,622,649ofthesecuritiesrepresenttargetPSUsgrantedbutnotvested (includingaccruedandreinvesteddividends)asofDecember31,2014(includingoutstandingawardsunderthe2014PlanasofDecember31, 2014).TheactualnumberofsharesissuedinrespectofthePSUswillvaryfrom0%to200%ofthetargetlevel,dependinguponthe achievementoftotalshareholderreturnobjectivesestablishedforsuchawards.ForadditionalinformationaboutthePSUs,includingpayout calculations,see"CompensationDiscussionandAnalysis-Long-TermIncentives:PerformanceShareUnitProgram("PSUP")"inAmeren's definitiveproxystatementforits2015annualmeetingofshareholdersfiledpursuanttoSECRegulation14A.64,113ofthesecuritiesrepresent sharesthatmaybeissuedasofDecember31,2014,tosatisfyobligationsundertheAmerenCorporationDeferredCompensationPlanfor membersoftheboardofdirectors.(b)EarnedPSUsanddeferredcompensationstockunitsarepaidinsharesofAmerencommonstockonaone-for-onebasis.Accordingly,thePSUsanddeferredcompensationstockunitsdonothaveaweighted-averageexerciseprice.AmerenMissouriandAmerenIllinoisdonothaveseparateequitycompensationplans.
146 SecurityOwnershipofCertainBeneficialOwnersandManagementTheinformationrequiredbyItem403ofSECRegulationS-KforAmerenwillbeincludedinitsdefinitiveproxystatementforits2015annualmeetingofshareholdersfiledpursuanttoSECRegulation14A;itisincorporatedhereinbyreference.InformationrequiredbythisSECRegulationS-KitemforAmerenMissouriandAmerenIllinoiswillbeincludedineach company'sdefinitiveinformationstatementforits2015annualmeetingofshareholdersfiledpursuanttoSECRegulation14C; itisincorporatedhereinbyreference.Specifically,referenceismadetothefollowingsectionofAmeren'sdefinitiveproxy statementandeachofAmerenMissouri'sandAmerenIllinois'definitiveinformationstatement:"SecurityOwnership."ITEM13.CERTAINRELATIONSHIPSANDRELATEDTRANSACTIONSANDDIRECTORINDEPENDENCEInformationrequiredbyItem404andItem407(a)ofSECRegulationS-KforAmerenwillbeincludedinitsdefinitiveproxystatementforits2015annualmeetingofshareholdersfiledpursuanttoSECRegulation14A;itisincorporatedhereinbyreference.InformationrequiredbytheseSECRegulationS-KitemsforAmerenMissouriandAmerenIllinoiswillbeincludedin eachcompany'sdefinitiveinformationstatementforits2015annualmeetingofshareholdersfiledpursuanttoSEC Regulation14C;itisincorporatedhereinbyreference.Specifically,referenceismadetothefollowingsectionsofAmeren's definitiveproxystatementandeachofAmerenMissouri'sandAmerenIllinois'definitiveinformationstatement:"PolicyandProceduresWithRespecttoRelatedPersonTransactions"and"DirectorIndependence."ITEM14.PRINCIPALACCOUNTINGFEESANDSERVICESInformationrequiredbyItem9(e)ofSECSchedule14AfortheAmerenCompanieswillbeincludedinthedefinitiveproxystatementofAmerenandthedefinitiveinformationstatementsofAmerenMissouriandAmerenIllinoisfortheir2015annualmeetingsofshareholdersfiledpursuanttoSECRegulations14Aand14C,respectively;itisincorporatedhereinbyreference.
Specifically,referenceismadetothefollowingsectionofAmeren'sdefinitiveproxystatementandeachofAmerenMissouri's andAmerenIllinois'definitiveinformationstatement:"IndependentRegisteredPublicAccountingFirm."
147 PARTIVITEM15.EXHIBITSANDFINANCIALSTATEMENTSCHEDULES(a)(1)FinancialStatementsPageNo.AmerenReportofIndependentRegisteredPublicAccountingFirm.............................................................67ConsolidatedStatementofIncome(Loss)-YearsEndedDecember31,2014,2013,and2012................................69ConsolidatedStatementofComprehensiveIncome(Loss)-YearsEndedDecember31,2014,2013,and2012...................70ConsolidatedBalanceSheet-December31,2014and2013...........................................................71ConsolidatedStatementofCashFlows-YearsEndedDecember31,2014,2013,and2012...................................72ConsolidatedStatementofStockholders'Equity-YearsEndedDecember31,2014,2013,and2012............................73AmerenMissouri ReportofIndependentRegisteredPublicAccountingFirm.............................................................68StatementofIncomeandComprehensiveIncome-YearsEndedDecember31,2014,2013,and2012..........................74BalanceSheet-December31,2014and2013......................................................................75StatementofCashFlows-YearsEndedDecember31,2014,2013,and2012.............................................76StatementofStockholders'Equity-YearsEndedDecember31,2014,2013,and2012......................................77AmerenIllinois ReportofIndependentRegisteredPublicAccountingFirm.............................................................68StatementofIncomeandComprehensiveIncome-YearsEndedDecember31,2014,2013,and2012..........................78BalanceSheet-December31,2014and2013......................................................................79StatementofCashFlows-YearsEndedDecember31,2014,2013,and2012.............................................80StatementofStockholders'Equity-YearsEndedDecember31,2014,2013,and2012......................................81(a)(2)FinancialStatementSchedulesScheduleI-CondensedFinancialInformationofParent-Ameren:CondensedStatementofIncome(Loss)andComprehensiveIncome(Loss)-YearsEndedDecember31,2014,2013,and2012...149 CondensedBalanceSheet-December31,2014and2013........................................................149CondensedStatementofCashFlows-YearsEndedDecember31,2014,2013,and2012................................150ScheduleII-ValuationandQualifyingAccountsfortheyearsendedDecember31,2014,2013,and2012.......................151ScheduleIandIIshouldbereadinconjunctionwiththeaforementionedfinancialstatements.Certainscheduleshavebeenomittedbecausetheyarenotapplicableorbecausetherequireddataisshownintheaforementionedfinancial statements.(a)(3)Exhibits-referenceismadetotheExhibitIndex
...........................................
155(b)ExhibitIndex
.......................................................................
155 148 SCHEDULEI-CONDENSEDFINANCIALINFORMATIONOFPARENTAMERENCORPORATIONCONDENSEDSTATEMENTOFINCOME(LOSS)ANDCOMPREHENSIVEINCOME(LOSS)FortheYearsEndedDecember31,2014,2013,and2012(Inmillions)201420132012Operatingrevenues
................................................................
$-$-$-Operatingexpenses
................................................................
112617Operatingloss
....................................................................
(11)(26)(17)Equityinearningsofsubsidiaries
.....................................................
607546546Interestincomefromaffiliates
........................................................
3 33Totalotherincome(expense),net
.....................................................
2(5)(4)Interestcharges
...................................................................
164239Incometax(benefit)
................................................................
(2)(36)(27)NetIncomeAttributabletoAmerenCorporation-ContinuingOperations
.......................
587512516NetLossAttributabletoAmerenCorporation-DiscontinuedOperations
.......................
(1)(223)(1,490)NetIncome(Loss)AttributabletoAmerenCorporation
.....................................$586$289$(974)NetIncomeAttributabletoAmerenCorporation-ContinuingOperations
.......................$587$512$516OtherComprehensiveIncome(Loss),NetofTaxes:Pensionandotherpostretirementbenefitplanactivity,netofincometaxes(benefit)of$(7),$16,and$(6),respectively
........................................................
(12)30(8)ComprehensiveIncomefromContinuingOperationsAttributabletoAmerenCorporation
..........
575542508NetLossAttributabletoAmerenCorporation-DiscontinuedOperations
.......................
(1)(223)(1,490)OtherComprehensiveIncome(Loss)fromDiscontinuedOperations,NetofIncomeTaxes
.........-(19)50ComprehensiveLossfromDiscontinuedOperationsAttributabletoAmerenCorporation
...........
(1)(242)(1,440)ComprehensiveIncome(Loss)AttributabletoAmerenCorporation
...........................$574$300$(932)SCHEDULEI-CONDENSEDFINANCIALINFORMATIONOFPARENTAMERENCORPORATIONCONDENSEDBALANCESHEET(Inmillions)December31,2014December31,2013 Assets:Cashandcashequivalents
..........................................................
$1$11Advancestomoneypool
............................................................
55 334Accountsreceivable-affiliates
.......................................................
28 18Notesreceivable-affiliates
..........................................................
94 9Miscellaneousaccountsandnotesreceivable
............................................
39 125Currentaccumulateddeferredincometaxes,net
.........................................
143 41Othercurrentassets
...............................................................
14 1Totalcurrentassets
..............................................................
374 539Investmentsinsubsidiaries-continuingoperations
......................................
6,680 6,336Investmentsinsubsidiaries-discontinuedoperations
.....................................
(4)(5)Notereceivable-ATXI
.............................................................
100 51Accumulateddeferredincometaxes,net
...............................................
264 570Otherassets
.....................................................................
152 141Totalassets
........................................................................$7,566$7,632LiabilitiesandStockholders'Equity:Currentmaturitiesoflong-termdebt
...................................................
$-$425Short-termdebt
..................................................................
585 368Accountspayable
.................................................................
-119Accountspayable-affiliates
.........................................................
88 4Othercurrentliabilities
.............................................................
52 20Totalcurrentliabilities
............................................................
725 936Otherdeferredcreditsandliabilities
...................................................
128 152Totalliabilities
..................................................................
853 1,088CommitmentsandContingencies(Notes4and5)Stockholders'Equity:Commonstock,$.01parvalue,400.0sharesauthorized-sharesoutstandingof242.6
...........
2 2Otherpaid-incapital,principallypremiumoncommonstock
................................
5,617 5,632 Retained earnings.................................................................
1,103 907 Accumulatedothercomprehensiveincome(loss)
........................................
(9)3Totalstockholders'equity
.........................................................
6,713 6,544Totalliabilitiesandstockholders'equity
..................................................$7,566$7,632 149 SCHEDULEI-CONDENSEDFINANCIALINFORMATIONOFPARENTAMERENCORPORATIONCONDENSEDSTATEMENTOFCASHFLOWSFortheYearsEndedDecember31,2014,2013,and2012(Inmillions)201420132012Netcashflowsprovidedbyoperatingactivities
...........................................$514$453$532Cashflowsfrominvestingactivities:Moneypooladvances,net
.........................................................
279 (371)24Notesreceivable-affiliates,net
.....................................................
(134)(23)(20)Investmentsinsubsidiaries
........................................................
(280)(50)(2)Distributionsfromsubsidiaries
.....................................................
215 12 1Proceedsfromnotereceivable-MarketingCompany
....................................
95 6-Contributionstonotereceivable-MarketingCompany
...................................
(89)(5)-Other.........................................................................
(12)(3)(5)Netcashflowsprovidedby(usedin)investingactivities
....................................
74 (445)18Cashflowsfromfinancingactivities:Dividendsoncommonstock
.......................................................
(390)(388)(382)Short-termdebt,net
.............................................................
217 368 (148)Maturitiesoflong-termdebt
.......................................................
(425)--Netcashflowsusedinfinancingactivities
...............................................
(598)(20)(530)Netchangeincashandcashequivalents
................................................$(10)$(12)$20Cashandcashequivalentsatbeginningofyear
...........................................
11 23 3Cashandcashequivalentsatendofyear
...............................................
$1$11$23Cashdividendsreceivedfromconsolidatedsubsidiaries
....................................$340$570$610Noncashinvestingactivity-divestiture
.................................................
$-$494$-Noncashinvestingactivity-investmentsinsubsidiaries
....................................
(19)--Noncashfinancingactivity-dividendsoncommonstock
...................................
--(7)AMERENCORPORATION(parentcompanyonly)NOTESTOCONDENSEDFINANCIALSTATEMENTSDecember31,2014NOTE1-BASISOFPRESENTATIONAmerenCorporation(parentcompanyonly)isapublicutilityholdingcompanythatconductssubstantiallyallofitsbusinessoperationsthroughitssubsidiaries.Inaccordancewithauthoritativeaccountingguidance,AmerenCorporation(parentcompanyonly)hasaccountedforwhollyownedsubsidiariesusingtheequitymethod.Thesefinancialstatementsarepresentedonacondensedbasis.Beginningin2014,unrecognizedtaxbenefitsarerecordedasareductiontothedeferredtaxassetsfornetoperatinglossesandtaxcreditcarryforwardswithin"Accumulateddeferredincometaxes,net"onAmerenCorporation's(parent companyonly)balancesheets.AtDecember31,2014,unrecognizedtaxbenefitsof$53millionwererecordedin "Accumulateddeferredincometaxes,net"onAmerenCorporation's(parentcompanyonly)balancesheet.AtDecember31, 2013,unrecognizedtaxbenefitsof$53millionpreviouslyrecordedin"Otherdeferredcreditsandliabilities"onAmeren Corporation's(parentcompanyonly)balancesheetwerereclassifiedto"Accumulateddeferredincometaxes,net"for comparativepurposes.SeeNote1-SummaryofSignificantAccountingPoliciesunderPartII,Item8,ofthisreportfor additionalinformation.AdditionaldisclosuresrelatingtotheparentcompanyfinancialstatementsareincludedwithinthecombinednotesunderPartII,Item8,ofthisreport.SeeNote1-SummaryofSignificantAccountingPoliciesandNote14-RelatedParty TransactionsunderPartII,Item8,ofthisreportforinformationonthetaxallocationagreementbetweenAmeren(parent)and itssubsidiaries.NOTE2-SHORT-TERMDEBTANDLIQUIDITYSeeNote4-Short-termDebtandLiquidityunderPartII,Item8,ofthisreportforadescriptionanddetailsofshort-termdebtandliquidityneedsofAmerenCorporation(parentcompanyonly).NOTE3-LONG-TERMOBLIGATIONSInMay2014,Ameren(parent)repaidatmaturity$425millionofits8.875%seniorunsecurednotes,plusaccruedinterest.Thenoteswererepaidwithproceedsfromcommercialpaperissuances.
150 NOTE4-COMMITMENTSANDCONTINGENCIESSeeNote15-CommitmentsandContingenciesandNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8,ofthisreportforadescriptionofallmaterialcontingencies,guarantees,andlettersofcreditoutstandingofAmerenCorporation(parentcompanyonly).NOTE5-NEWAERDIVESTITUREANDDISCONTINUEDOPERATIONSInDecember2012,Amerendeterminedthatitintendedto,anditwasprobablethatitwould,exititsMerchantGenerationbusinessbeforetheendofthepreviouslyestimatedusefullivesofthatbusiness'slong-livedassets.Asaresultofthe2012determination,AmerenCorporation(parentcompanyonly)recordedapretaximpairmentchargeof$1.88billiontoreduceits investmentincertainoftheMerchantGenerationsegment'scoalandnatural-gas-firedenergycenterstotheirestimatedfair values.InDecember2013,Amerencompletedadivestiturethatincludedasignificantportionofthatbusiness.Asaresultof thedivestiturein2013,AmerenCorporation(parentcompanyonly)recordedapretaxlossondisposalof$201million.These chargeswereincludedwithin"NetLossAttributabletoAmerenCorporation-DiscontinuedOperations"intheAmeren Corporation(parentcompanyonly)CondensedStatementofIncome(Loss)andComprehensiveIncome(Loss)fortheyearsendedDecember31,2013and2012.The"Miscellaneousaccountsandnotesreceivable"ontheDecember31,2013AmerenCorporation(parentcompanyonly)CondensedBalanceSheetincludedareceivablefromDynegyrelatedtothenon-state-regulatedsubsidiarymoneypool borrowingbalanceasofthedivestituredateofcertainNewAERsubsidiaries.Additionally,apayabletoDynegyofthe estimatedworkingcapitaladjustmentrequiredunderthetermsoftheagreementwithIPHwasreflectedin"Accountspayable"ontheDecember31,2013AmerenCorporation(parentcompanyonly)CondensedBalanceSheet.In2014,thereceivableand payablewerefinalizedandsettled,alongwithcertaincontingentliabilitiesassociatedwiththeNewAERdivestiture,resultingin anet$13millionpaymenttoIPH.SeeNote16-DivestitureTransactionsandDiscontinuedOperationsunderPartII,Item8,ofthisreportforadditionalinformationontheimpairmentchargesrecognizedin2013and2012aswellasthedivestiture.SCHEDULEII-VALUATIONANDQUALIFYINGACCOUNTSFORTHEYEARSENDEDDECEMBER31,2014,2013,AND2012(inmillions)ColumnAColumnBColumnCColumnDColumnE DescriptionBalanceat BeginningofPeriod (1)ChargedtoCostsandExpenses (2)ChargedtoOther Accounts (a)Deductions (b)BalanceatEndofPeriod Ameren:Deductedfromassets-allowancefordoubtfulaccounts:
2014.......................................$18$36$4$37$21 2013.......................................173543818 2012.......................................203023517Deferredtaxvaluationallowance:
2014.......................................$7$3$-$-$10 2013.......................................25--7 2012.......................................11--2AmerenMissouri:Deductedfromassets-allowancefordoubtfulaccounts:
2014.......................................$5$16$-$13$8 2013.......................................516-165 2012.......................................711-135Deferredtaxvaluationallowance:
2014.......................................$1$-$-$-$1 2013.......................................1---1 2012.......................................1---1AmerenIllinois:Deductedfromassets-allowancefordoubtfulaccounts:
2014.......................................$13$20$4$24$13 2013.......................................121942213 2012.......................................131922212Deferredtaxvaluationallowance:
2014.......................................$1$-$-$-$1 2013.......................................1---1 2012.......................................-1--1(a)UncollectibleaccountreserveassociatedwithreceivablespurchasedbyAmerenIllinoisfromalternativeretailelectricsuppliers,asrequiredbytheIllinoisPublicUtilitiesAct.(b)Uncollectibleaccountschargedoff,lessrecoveries.
151 SIGNATURESPursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,eachregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized.Thesignaturesforeachundersignedcompanyshallbedeemedtorelateonlytomattershavingreferencetosuchcompanyoritssubsidiaries.AMERENCORPORATION (registrant)Date:March2,2015 By/s/WarnerL.BaxterWarnerL.Baxter Chairman,PresidentandChiefExecutiveOfficerPursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedateindicated./s/WarnerL.BaxterWarnerL.BaxterChairman,PresidentandChiefExecutiveOfficer,andDirector (PrincipalExecutiveOfficer)March2,2015/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentand ChiefFinancialOfficer (PrincipalFinancialOfficer)March2,2015/s/BruceA.SteinkeBruceA.SteinkeSeniorVicePresident,Finance,and ChiefAccountingOfficer (PrincipalAccountingOfficer)March2,2015
- CatherineS.BruneDirectorMarch2,2015
- J.EdwardColemanDirectorMarch2,2015
- EllenM.FitzsimmonsDirectorMarch2,2015
- WalterJ.GalvinDirectorMarch2,2015
- RichardJ.HarshmanDirectorMarch2,2015
- GayleP.W.JacksonDirectorMarch2,2015
- JamesC.JohnsonDirectorMarch2,2015
- StevenH.LipsteinDirectorMarch2,2015
- PatrickT.StokesDirectorMarch2,2015
- StephenR.WilsonDirectorMarch2,2015
- JackD.WoodardDirectorMarch2,2015*By/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.
Attorney-in-FactMarch2,2015 152 UNIONELECTRICCOMPANY (registrant)Date:March2,2015 By/s/MichaelL.MoehnMichaelL.MoehnChairmanandPresidentPursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedateindicated./s/MichaelL.MoehnMichaelL.MoehnChairmanandPresident,andDirector(PrincipalExecutiveOfficer)March2,2015/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentand ChiefFinancialOfficer,andDirector (PrincipalFinancialOfficer)March2,2015/s/BruceA.SteinkeBruceA.SteinkeSeniorVicePresident,Finance,and ChiefAccountingOfficer (PrincipalAccountingOfficer)March2,2015
- DanielF.ColeDirectorMarch2,2015
- FadiM.DiyaDirectorMarch2,2015
- GregoryL.NelsonDirectorMarch2,2015*By/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.
Attorney-in-FactMarch2,2015 153 AMERENILLINOISCOMPANY (registrant)Date:March2,2015 By/s/RichardJ.MarkRichardJ.MarkChairmanandPresidentPursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedateindicated./s/RichardJ.MarkRichardJ.MarkChairmanandPresident,andDirector(PrincipalExecutiveOfficer)March2,2015/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentand ChiefFinancialOfficer,andDirector (PrincipalFinancialOfficer)March2,2015/s/BruceA.SteinkeBruceA.SteinkeSeniorVicePresident,Finance,and ChiefAccountingOfficer (PrincipalAccountingOfficer)March2,2015
- DanielF.ColeDirectorMarch2,2015
- CraigD.NelsonDirectorMarch2,2015
- GregoryL.NelsonDirectorMarch2,2015*By/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.
Attorney-in-FactMarch2,2015 154 EXHIBITINDEXThedocumentslistedbelowarebeingfiledorhavepreviouslybeenfiledonbehalfoftheAmerenCompaniesandareincorporatedhereinbyreferencefromthedocumentsindicatedandmadeaparthereof.Exhibitsnotidentifiedaspreviouslyfiledarefiledherewith:ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:PlanofAcquisition,Reorganization,Arrangement,LiquidationorSuccession 2.1 AmerenTransactionAgreement,datedasofMarch14,2013,betweenAmeren CorporationandIllinoisPowerHoldings,LLCMarch19,2013Form8-K,Exhibit2.1, FileNo.1-147562.2AmerenLetterAgreement,datedDecember2,2013,betweenAmerenCorporationandIllinois PowerHoldings,LLC,amendingthe TransactionAgreement,datedasof March14,2013December4,2013Form8-K,Exhibit2.2, FileNo.1-14756ArticlesofIncorporation/By-Laws 3.1(i)AmerenRestatedArticlesofIncorporationof
AmerenAnnexFtoPartIoftheRegistration StatementonFormS-4,FileNo.33-64165 3.2(i)AmerenCertificateofAmendmenttoAmeren's RestatedArticlesofIncorporationfiled December14,19981998Form10-K,Exhibit3(i),
FileNo.1-14756 3.3(i)AmerenCertificateofAmendmenttoAmeren's RestatedArticlesofIncorporationfiled April21,2011April21,2011Form8-K,Exhibit3(i),
FileNo.1-14756 3.4(i)AmerenCertificateofAmendmenttoAmeren's RestatedArticlesofIncorporationfiled December18,2012December18,2012Form8-K,Exhibit3.1(i),
FileNo.1-14756 3.5(i)AmerenMissouriRestatedArticlesofIncorporationofAmerenMissouri1993Form10-K,Exhibit3(i),
FileNo.1-2967 3.6(i)AmerenIllinoisRestatedArticlesofIncorporationof AmerenIllinois2010Form10-K,Exhibit3.4(i),
FileNo.1-36723.7(ii)AmerenBy-LawsofAmeren,asamended December14,2012December18,2012Form8-K, Exhibit3.1(ii),FileNo.1-147563.8(ii)AmerenMissouriBylawsofAmerenMissouri,asamendedDecember12,2014December18,2014Form8-K, Exhibit3.1,FileNo.1-29673.9(ii)AmerenIllinoisBylawsofAmerenIllinois,asamended December12,2014December18,2014Form8-K, Exhibit3.2,FileNo.1-3672InstrumentsDefiningRightsofSecurityHolders,IncludingIndentures 4.1 AmerenIndenture,datedasofDecember1,2001 fromAmerentoTheBankofNewYork MellonTrustCompany,N.A.,assuccessor trustee,relatingtoseniordebtsecurities (AmerenIndenture)Exhibit4.5,FileNo.333-81774
4.2 AmerenFirstSupplementalIndenturetoAmeren
SeniorIndenturedatedasofMay19,2008June30,2008Form10-Q,Exhibit4.1, FileNo.1-14756
4.3 Ameren
AmerenMissouriIndentureofMortgageandDeedofTrust, datedJune15,1937(AmerenMissouri Mortgage),fromAmerenMissouritoThe BankofNewYorkMellon,assuccessor trustee,asamendedMay1,1941,and SecondSupplementalIndenturedated May1,1941ExhibitB-1,FileNo.2-4940 155 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.4 AmerenAmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofJuly1,1956August2,1956Form8-K,Exhibit2, FileNo.1-2967
4.5 Ameren
AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofApril1, 1971April1971Form8-K,Exhibit6, FileNo.1-2967
4.6 Ameren
AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofFebruary1, 1974February1974Form8-K,Exhibit3, FileNo.1-2967
4.7 Ameren
AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofJuly7,1980Exhibit4.6,FileNo.2-69821
4.8 Ameren
AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofOctober1, 1993,relativetoSeries20281993Form10-K,Exhibit4.8, FileNo.1-2967
4.9 Ameren
AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedasofFebruary1, 20002000Form10-K,Exhibit4.1, FileNo.1-2967 4.10 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedAugust15,2002August23,2002Form8-K,Exhibit4.3, FileNo.1-2967 4.11 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedMarch5,2003, relativetoSeriesBBMarch11,2003Form8-K,Exhibit4.4, FileNo.1-2967 4.12 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedApril1,2003, relativetoSeriesCCApril10,2003Form8-K,Exhibit4.4, FileNo.1-2967 4.13 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedJuly15,2003, relativetoSeriesDDAugust4,2003Form8-K,Exhibit4.4, FileNo.1-2967 4.14 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedOctober1,2003, relativetoSeriesEEOctober8,2003Form8-K,Exhibit4.4, FileNo.1-2967 4.15 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedFebruary1,2004, relativetoSeries2004A(1998A)March31,2004Form10-Q,Exhibit4.1, FileNo.1-2967 4.16 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedFebruary1,2004, relativetoSeries2004B(1998B)March31,2004Form10-Q,Exhibit4.2, FileNo.1-2967 4.17 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedFebruary1,2004, relativetoSeries2004C(1998C)March31,2004Form10-Q,Exhibit4.3, FileNo.1-2967 4.18 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedFebruary1,2004, relativetoSeries2004H(1992)March31,2004Form10-Q,Exhibit4.8, FileNo.1-2967 4.19 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedMay1,2004 relativetoSeriesFFMay18,2004Form8-K,Exhibit4.4, FileNo.1-2967 4.20 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedSeptember1, 2004relativetoSeriesGGSeptember23,2004Form8-K,Exhibit4.4, FileNo.1-2967 4.21 Ameren Ameren Missouri SupplementalIndenturetotheAmerenMissouriMortgagedatedJanuary1,2005 relativetoSeriesHHJanuary27,2005Form8-K,Exhibit4.4, FileNo.1-2967 4.22 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedJuly1,2005 relativetoSeriesIIJuly21,2005Form8-K,Exhibit4.4, FileNo.1-2967 156 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.23 AmerenAmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedDecember1, 2005relativetoSeriesJJDecember9,2005Form8-K,Exhibit4.4, FileNo.1-2967 4.24 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedJune1,2007 relativetoSeriesKKJune15,2007Form8-K,Exhibit4.5, FileNo.1-2967 4.25 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedApril1,2008 relativetoSeriesLLApril8,2008Form8-K,Exhibit4.7, FileNo.1-2967 4.26 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedJune1,2008 relativetoSeriesMMJune19,2008Form8-K,Exhibit4.5, FileNo.1-2967 4.27 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedMarch1,2009 relativetoSeriesNNMarch23,2009Form8-K,Exhibit4.5, FileNo.1-2967 4.28 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedMay15,2012Exhibit4.45,FileNo.333-182258 4.29 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedSeptember1, 2012relativetoSeriesOOSeptember11,2012Form8-K,Exhibit4.4, FileNo.1-2967 4.30 Ameren AmerenMissouriSupplementalIndenturetotheAmeren MissouriMortgagedatedApril1,2014 relativetoSeriesPPApril4,2014Form8-K,Exhibit4.5, FileNo.1-2967 4.31 Ameren AmerenMissouriLoanAgreement,datedasofDecember1, 1992,betweentheMissouriEnvironmental AuthorityandAmerenMissouri,together withIndentureofTrustdatedasof December1,1992,betweentheMissouri EnvironmentalAuthorityandUMBBank, N.A.assuccessortrusteetoMercantile BankofSt.Louis,N.A.1992Form10-K,Exhibit4.38, FileNo.1-2967 4.32 Ameren AmerenMissouriFirstAmendment,datedasofFebruary1, 2004,toLoanAgreementdatedasof December1,1992,betweentheMissouri EnvironmentalAuthorityandAmeren
MissouriMarch31,2004Form10-Q,Exhibit4.10, FileNo.1-2967 4.33 Ameren AmerenMissouriSeries1998ALoanAgreement,datedasof September1,1998,betweentheMissouri EnvironmentalAuthorityandAmeren
MissouriSeptember30,1998Form10-Q, Exhibit4.28,FileNo.1-2967 4.34 Ameren AmerenMissouriFirstAmendment,datedasofFebruary1, 2004,toSeries1998ALoanAgreement datedasofSeptember1,1998,between theMissouriEnvironmentalAuthorityand AmerenMissouriMarch31,2004Form10-Q,Exhibit4.11, FileNo.1-2967 4.35 Ameren AmerenMissouriSeries1998BLoanAgreement,datedasof September1,1998,betweentheMissouri EnvironmentalAuthorityandAmeren
MissouriSeptember30,1998Form10-Q, Exhibit4.29,FileNo.1-2967 4.36 Ameren AmerenMissouriFirstAmendment,datedasofFebruary1, 2004,toSeries1998BLoanAgreement datedasofSeptember1,1998,between theMissouriEnvironmentalAuthorityand AmerenMissouriMarch31,2004Form10-Q,Exhibit4.12, FileNo.1-2967 4.37 Ameren AmerenMissouriSeries1998CLoanAgreement,datedasof September1,1998,betweentheMissouri EnvironmentalAuthorityandAmeren
MissouriSeptember30,1998Form10-Q, Exhibit4.30,FileNo.1-2967 157 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.38 AmerenAmerenMissouriFirstAmendment,datedasofFebruary1, 2004,toSeries1998CLoanAgreement datedasofSeptember1,1998,between theMissouriEnvironmentalAuthorityand AmerenMissouriMarch31,2004Form10-Q,Exhibit4.13, FileNo.1-2967 4.39 Ameren AmerenMissouriIndenture,datedasofAugust15,2002, fromAmerenMissouritoTheBankofNew YorkMellon,assuccessortrustee(relating toseniorsecureddebtsecurities)(Ameren MissouriIndenture)August23,2002Form8-K,Exhibit4.1, FileNo.1-2967 4.40 Ameren AmerenMissouriFirstSupplementalIndenturetotheAmeren MissouriIndenture,datedasofMay15, 2012Exhibit4.48,FileNo.333-182258 4.41 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedMarch10,2003,establishing the5.50%SeniorSecuredNotesdue2034 (includingtheglobalnote)March11,2003Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.42 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedApril9,2003,establishingthe 4.75%SeniorSecuredNotesdue2015 (includingtheglobalnote)April10,2003Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.43 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedJuly28,2003,establishingthe 5.10%SeniorSecuredNotesdue2018 (includingtheglobalnote)August4,2003Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.44 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedOctober7,2003,establishing the4.65%SeniorSecuredNotesdue2013 (includingtheglobalnote)October8,2003Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.45 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedMay13,2004,establishingthe 5.50%SeniorSecuredNotesdue2014 (includingtheglobalnote)May18,2004Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.46 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedSeptember1,2004, establishingthe5.10%SeniorSecured Notesdue2019(includingtheglobalnote)September23,2004Form8-K,Exhibits4.2 and4.3,FileNo.1-2967 4.47 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedJanuary27,2005,establishing the5.00%SeniorSecuredNotesdue2020 (includingtheglobalnote)January27,2005Form8-K,Exhibits4.2 and4.3,FileNo.1-2967 4.48 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedJuly21,2005,establishingthe 5.30%SeniorSecuredNotesdue2037 (includingtheglobalnote)July21,2005Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.49 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedDecember8,2005, establishingthe5.40%SeniorSecured Notesdue2016(includingtheglobalnote)December9,2005Form8-K,Exhibits4.2 and4.3,FileNo.1-2967 4.50 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedJune15,2007,establishing the6.40%SeniorSecuredNotesdue2017 (includingtheglobalnote)June15,2007Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.51 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedApril8,2008,establishingthe 6.00%SeniorSecuredNotesdue2018 (includingtheglobalnote)April8,2008Form8-K,Exhibits4.3and 4.5,FileNo.1-2967 158 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.52 AmerenAmerenMissouriAmerenMissouriIndentureCompany Order,datedJune19,2008,establishing the6.70%SeniorSecuredNotesdue2019 (includingtheglobalnote)June19,2008Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.53 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedMarch20,2009,establishing 8.45%SeniorSecuredNotesdue2039 (includingtheglobalnote)March23,2009Form8-K,Exhibits4.2and 4.3,FileNo.1-2967 4.54 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedSeptember11,2012, establishing3.90%SeniorSecuredNotes due2042(includingtheglobalnote)September11,2012Form8-K,Exhibit4.2, FileNo.1-2967 4.55 Ameren AmerenMissouriAmerenMissouriIndentureCompany Order,datedApril4,2014,establishing 3.50%SeniorSecuredNotesdue2024 (includingtheglobalnote)April4,2014Form8-K,Exhibit4.2,File No.1-2967 4.56 Ameren AmerenIllinoisIndenture,datedasofDecember1,1998, fromCentralIllinoisPublicService Company(nowknownasAmerenIllinois) toTheBankofNewYorkMellonTrust Company,N.A.,assuccessortrustee(CIPS
Indenture)Exhibit4.4,FileNo.333-59438 4.57 Ameren AmerenIllinoisFirstSupplementalIndenturetotheCIPS Indenture,datedasofJune14,2006June19,2006Form8-K,Exhibit4.2, FileNo.1-3672 4.58 Ameren AmerenIllinoisSecondSupplementalIndenturetotheCIPS Indenture,datedasofMarch1,2010Exhibit4.17,FileNo.333-166095 4.59 Ameren AmerenIllinoisThirdSupplementalIndenturetotheCIPS Indenture,datedasofOctober1,20102010Form10-K,Exhibit4.59, FileNo.1-3672 4.60 Ameren AmerenIllinoisAmerenIllinoisGlobalNote,dated October1,2010,representingCIPS IndentureSeniorNotes,6.125%due20282010Form10-K,Exhibit4.60, FileNo.1-3672 4.61 Ameren AmerenIllinoisAmerenIllinoisGlobalNote,dated October1,2010,representingCIPS IndentureSeniorNotes,6.70%Series SecuredNotesdue20362010Form10-K,Exhibit4.62, FileNo.1-3672 4.62 Ameren AmerenIllinoisIndentureofMortgageandDeedofTrust betweenIllinoisPowerCompany (predecessorininteresttoCILCOand AmerenIllinois)andBankersTrust Company(nowknownasDeutscheBank TrustCompanyAmericas),astrustee,dated asofApril1,1933(CILCOMortgage),
SupplementalIndenturebetweenthesame partiesdatedasofJune30,1933, SupplementalIndenturebetweenCILCO (predecessorininteresttoAmerenIllinois) andthetrustee,datedasofJuly1,1933, SupplementalIndenturebetweenthesame partiesdatedasofJanuary1,1935,and SupplementalIndenturebetweenthesame partiesdatedasofApril1,1940ExhibitB-1,RegistrationNo.2-1937; ExhibitB-1(a),RegistrationNo.2-2093;and ExhibitA,April1940Form8-K, FileNo.1-2732 4.63 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedDecember1,1949December1949Form8-K,ExhibitA, FileNo.1-2732 4.64 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedJuly1,1957July1957Form8-K,ExhibitA, FileNo.1-2732 4.65 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedFebruary1,1966February1966Form8-K,ExhibitA, FileNo.1-2732 159 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.66 AmerenAmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedJanuary15,1992January30,1992Form8-K,Exhibit4(b),
FileNo.1-2732 4.67 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedJune1,2006forthe SeriesAAandBBJune19,2006Form8-K,Exhibit4.11, FileNo.1-2732 4.68 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedDecember1,2008forthe SeriesCCDecember9,2008Form8-K,Exhibit4.5, FileNo.1-2732 4.69 Ameren AmerenIllinoisSupplementalIndenturetotheCILCO Mortgage,datedasofOctober1,2010October7,2010Form8K,Exhibit4.4, FileNo.1-14756 4.70 Ameren AmerenIllinoisIndenture,datedasofJune1,2006,from CILCO(predecessorininteresttoAmeren Illinois)toTheBankofNewYorkMellon TrustCompany,N.A.,assuccessortrustee (CILCOIndenture)June19,2006Form8-K,Exhibit4.3, FileNo.1-2732 4.71 Ameren AmerenIllinoisFirstSupplementalIndenturetotheCILCO Indenture,datedOctober1,2010October7,2010Form8K,Exhibit4.1, FileNo.1-3672 4.72 Ameren AmerenIllinoisSecondSupplementalIndenturetothe CILCOIndenturedatedasofJuly21,2011September30,2011Form10-Q,Exhibit4.1, FileNo.1-3672 4.73 Ameren AmerenIllinoisCILCOIndentureCompanyOrder,dated June14,2006,establishingthe6.20%
SeniorSecuredNotesdue2016(including theglobalnote)andthe6.70%Senior SecuredNotesdue2036(includingthe globalnote)June19,2006Form8-K,Exhibit4.6, FileNo.1-2732 4.74 Ameren AmerenIllinoisCILCOIndentureCompanyOrder,dated December9,2008,establishingthe8.875%
SeniorSecuredNotesdue2013(including theglobalnote)December9,2008Form8-K,Exhibits4.2 and4.3,FileNo.1-2732 4.75 Ameren AmerenIllinoisGeneralMortgageIndentureandDeedof Trust,datedasofNovember1,1992 betweenIllinoisPowerCompany (predecessorininteresttoAmerenIllinois) andTheBankofNewYorkMellonTrust Company,N.A.,assuccessortrustee (AmerenIllinoisMortgage)1992Form10-K,Exhibit4(cc),
FileNo.1-3004 4.76 Ameren AmerenIllinoisSupplementalIndenture,datedasof March1,1998,toAmerenIllinoisMortgage forSeriesSExhibit4.41,FileNo.333-71061 4.77 Ameren AmerenIllinoisSupplementalIndenture,datedasof March1,1998,toAmerenIllinoisMortgage forSeriesTExhibit4.42,FileNo.333-71061 4.78 Ameren AmerenIllinoisSupplementalIndentureamendingthe AmerenIllinoisMortgagedatedasof June15,1999June30,1999Form10-Q,Exhibit4.2, FileNo.1-3004 4.79 Ameren AmerenIllinoisSupplementalIndenture,datedasof July15,1999,toAmerenIllinoisMortgage forSeriesUJune30,1999Form10-Q,Exhibit4.4, FileNo.1-3004 4.80 Ameren AmerenIllinoisSupplementalIndentureamendingthe AmerenIllinoisMortgagedatedasof December15,2002December23,2002Form8-K,Exhibit4.1, FileNo.1-3004 4.81 Ameren AmerenIllinoisSupplementalIndenture,datedasof June1,2006,toAmerenIllinoisMortgage forSeriesAAJune19,2006Form8-K,Exhibit4.13, FileNo.1-3004 4.82 Ameren AmerenIllinoisSupplementalIndenture,datedasof November15,2007,toAmeren IllinoisMortgageforSeriesBBNovember20,2007Form8-K,Exhibit4.4, FileNo.1-3004 160 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.83 AmerenAmerenIllinoisSupplementalIndenture,datedasofApril1, 2008,toAmerenIllinoisMortgagefor SeriesCCApril8,2008Form8-K,Exhibit4.9, FileNo.1-3004 4.84 Ameren AmerenIllinoisSupplementalIndenture,datedasof October1,2008,toAmeren IllinoisMortgageforSeriesDDOctober23,2008Form8-K,Exhibit4.4, FileNo.1-3004 4.85 Ameren AmerenIllinoisSupplementalIndenture,datedasof October1,2010,toAmeren IllinoisMortgageforSeriesCIPS-AA, CIPS-BBandCIPS-CCOctober7,2010Form8K,Exhibit4.9, FileNo.1-3672 4.86 Ameren AmerenIllinoisSupplementalIndenture,datedasof January15,2011,toAmeren IllinoisMortgageExhibit4.78,FileNo.333-182258 4.87 Ameren AmerenIllinoisSupplementalIndenture,datedasof August1,2012,toAmeren IllinoisMortgageforSeriesEEAugust20,2012Form8-K,Exhibit4.4, FileNo.1-3672 4.88 Ameren AmerenIllinoisSupplementalIndenture,datedasof December1,2013,toAmerenIllinois MortgageforSeriesFFDecember10,2013Form8-K,Exhibit4.5, FileNo.1-3672 4.89 Ameren AmerenIllinoisSupplementalIndenture,datedasof June1,2014,toAmerenIllinoisMortgage forSeriesGGJune30,2014Form8-K,Exhibit4.5, FileNo.1-3672 4.90 Ameren AmerenIllinoisSupplementalIndenture,datedasof December1,2014,toAmerenIllinois MortgageforSeriesHHDecember10,2014Form8-K,Exhibit4.5, FileNo.1-3672 4.91 Ameren AmerenIllinoisIndenture,datedasofJune1,2006,from IP(predecessorininteresttoAmeren Illinois)toTheBankofNewYorkMellon TrustCompany,N.A.,assuccessortrustee (AmerenIllinoisIndenture)June19,2006Form8-K,Exhibit4.4, FileNo.1-3004 4.92 Ameren AmerenIllinoisFirstSupplementalIndenture,datedasof October1,2010,totheAmeren IllinoisIndentureforSeriesCIPS-AA,CIPS-BBandCIPS-CCOctober7,2010Form8K,Exhibit4.5, FileNo.1-14756 4.93 Ameren AmerenIllinoisSecondSupplementalIndenturetothe AmerenIllinoisIndenturedatedasof July21,2011September30,2011Form10-Q,Exhibit 4.2,FileNo.1-3672 4.94 Ameren AmerenIllinoisThirdSupplementalIndenturetothe AmerenIllinoisIndenturedatedasof May15,2012Exhibit4.83,FileNo.333-182258 4.95 Ameren AmerenIllinoisAmerenIllinoisIndentureCompanyOrder, datedJune14,2006,establishingthe 6.25%SeniorSecuredNotesdue2016 (includingtheglobalnote)June19,2006Form8-K,Exhibit4.7, FileNo.1-3004 4.96 Ameren AmerenIllinoisAmerenIllinoisIndentureCompanyOrder, datedNovember15,2007,establishing 6.125%SeniorSecuredNotesdue2017 (includingtheglobalnote)November20,2007Form8-K,Exhibit4.2, FileNo.1-3004 4.97 Ameren AmerenIllinoisAmerenIllinoisIndentureCompanyOrder, datedApril8,2008,establishing6.25%
SeniorSecuredNotesdue2018(including theglobalnote)April8,2008Form8-K,Exhibit4.4, FileNo.1-3004 4.98 Ameren AmerenIllinoisAmerenIllinoisIndentureCompanyOrder datedOctober23,2008,establishing9.75%
SeniorSecuredNotesdue2018(including theglobalnote)October23,2008Form8-K,Exhibit4.2, FileNo.1-3004 161 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
4.99 AmerenAmerenIllinoisAmerenIllinoisIndentureCompanyOrder datedAugust20,2012,establishing2.70%
SeniorSecuredNotesdue2022(including theglobalnote)August20,2012Form8-K,Exhibits4.2and 4.3,FileNo.1-30044.100AmerenAmerenIllinoisAmerenIllinoisIndentureCompanyOrder datedDecember10,2013,establishing 4.80%SeniorSecuredNotesdue2043 (includingtheglobalnote)December10,2013Form8-K,Exhibit4.2, FileNo.1-36724.101AmerenAmerenIllinoisAmerenIllinoisIndentureCompanyOrder datedJune30,2014,establishing4.30%
SeniorSecuredNotesdue2044(including theglobalnote)June30,2014Form8-K,Exhibit4.2, FileNo.1-36724.102AmerenAmerenIllinoisAmerenIllinoisIndentureCompanyOrder datedDecember10,2014,establishing 3.25%SeniorSecuredNotesdue2025 (includingtheglobalnote)December10,2014Form8-K,Exhibit4.2, FileNo.1-3672MaterialContracts 10.1AmerenCompaniesThirdAmendedAmerenCorporationSystemUtilityMoneyPoolAgreement,as amendedSeptember30,2004October1,2004Form8-K,Exhibit10.2, FileNo.1-14756 10.2 Ameren AmerenMissouriAmendedandRestatedCreditAgreement, datedasofDecember11,2014,byand amongAmeren,AmerenMissouriand JPMorganChaseBank,N.A.,asagent,and thelenderspartythereto.December11,2014Form8-K,Exhibit10.1, FileNo.1-14756 10.3 Ameren AmerenIllinoisAmendedandRestatedCreditAgreement, datedasofDecember11,2014,byand amongAmeren,AmerenIllinoisand JPMorganChaseBank,N.A.,asagent,and thelenderspartythereto.December11,2014Form8-K,Exhibit10.2, FileNo.1-14756 10.4 Ameren*SummarySheetofAmerenCorporationNon-ManagementDirectorCompensation revisedonAugust9,2013andeffectiveas ofAugust12,2013September30,2013Form10-Q, Exhibit10.1,FileNo.1-14756 10.5 Ameren*Ameren'sDeferredCompensationPlanfor MembersoftheBoardofDirectors amendedandrestatedeffectiveJanuary1, 2009,datedJune13,2008June30,2008Form10-Q,Exhibit10.3, FileNo.1-14756 10.6AmerenCompanies*AmendmentdatedOctober12,2009,toAmeren'sDeferredCompensationPlanfor MembersoftheBoardofDirectors, effectiveJanuary1,20102009Form10-K,Exhibit10.15, FileNo.1-14756 10.7AmerenCompanies*AmendmentdatedOctober14,2010,toAmeren'sDeferredCompensationPlanfor MembersoftheBoardofDirectors2010Form10-K,Exhibit10.15, FileNo.1-14756 10.8AmerenCompanies*Ameren'sDeferredCompensationPlanasamendedandrestatedeffectiveJanuary1, 2010October14,2009Form8-K,Exhibit10.1, FileNo.1-14756 10.9AmerenCompanies*AmendmentdatedOctober14,2010toAmeren'sDeferredCompensationPlan2010Form10-K,Exhibit10.17, FileNo.1-1475610.10AmerenCompanies*2012AmerenExecutiveIncentivePlanDecember14,2011Form8-K,Exhibit10.1,FileNo.1-1475610.11AmerenCompanies*2013AmerenExecutiveIncentivePlanDecember18,2012Form8-K,Exhibit10.1,FileNo.1-1475610.12AmerenCompanies*2014AmerenExecutiveIncentivePlanMarch31,2014Form10-Q,Exhibit10.1,FileNo.1-14756 162 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:10.13AmerenCompanies*2015AmerenExecutiveIncentivePlan10.14AmerenCompanies*2012BaseSalaryTableforNamedExecutiveOfficers2011Form10-K,Exhibit10.23,FileNo.1-1475610.15AmerenCompanies*2013BaseSalaryTableforNamedExecutiveOfficers2012Form10-K,Exhibit10.17, FileNo.1-1475610.16AmerenCompanies*2014BaseSalaryTableforNamedExecutiveOfficers2013Form10-K,Exhibit10.15, FileNo.1-1475610.17AmerenCompanies*2015BaseSalaryTableforNamedExecutiveOfficers10.18AmerenCompanies*SecondAmendedandRestatedAmerenCorporationChangeofControlSeverance
Plan2008Form10-K,Exhibit10.37, FileNo.1-1475610.19AmerenCompanies*FirstAmendmentdatedOctober12,2009,totheSecondAmendedandRestated AmerenChangeofControlSeverancePlanOctober14,2009Form8-K,Exhibit10.2, FileNo.1-1475610.20AmerenCompanies*RevisedScheduleItoSecondAmendedandRestatedAmerenChangeofControl SeverancePlan,asamendedSeptember30,2014Form10-Q,Exhibit10.1, FileNo.1-1475610.21AmerenCompanies*FormulaforDetermining2012TargetPerformanceShareUnitAwardstobe IssuedtoNamedExecutiveOfficersDecember14,2011Form8-K,Exhibit99.1, FileNo.1-1475610.22AmerenCompanies*FormulaforDetermining2013TargetPerformanceShareUnitAwardstobe IssuedtoNamedExecutiveOfficersDecember18,2012Form8-K,Exhibit99.1, FileNo.1-1475610.23AmerenCompanies*FormulaforDetermining2014TargetPerformanceShareUnitAwardstobe IssuedtoNamedExecutiveOfficersMarch31,2014Form10-Q,Exhibit10.2, FileNo.1-1475610.24AmerenCompanies*FormulaforDetermining2015TargetPerformanceShareUnitAwardstobe IssuedtoNamedExecutiveOfficers10.25AmerenCompanies*AmerenCorporation2006OmnibusIncentiveCompensationPlanFebruary16,2006Form8-K,Exhibit10.3, FileNo.1-1475610.26AmerenCompanies*FormofPerformanceShareUnitAwardAgreementforAwardsIssuedin2012 pursuantto2006OmnibusIncentive CompensationPlanDecember14,2011Form8-K,Exhibit10.2, FileNo.1-1475610.27AmerenCompanies*FormofPerformanceShareUnitAwardAgreementforAwardsIssuedin2013 pursuantto2006OmnibusIncentive CompensationPlanDecember18,2012Form8-K,Exhibit10.2, FileNo.1-1475610.28AmerenCompanies*FormofPerformanceShareUnitAwardAgreementforAwardsIssuedin2014 pursuantto2006OmnibusIncentive CompensationPlanMarch31,2014Form10-Q,Exhibit10.3, FileNo.1-1475610.29AmerenCompanies*AmerenCorporation2014OmnibusIncentiveCompensationPlanExhibit99,FileNo.333-19651510.30AmerenCompanies*FormofPerformanceShareUnitAwardAgreementforAwardsIssuedin2014 pursuantto2014OmnibusIncentive CompensationPlan10.31AmerenCompanies*FormofPerformanceShareUnitAwardAgreementforAwardsIssuedin2015 pursuantto2014OmnibusIncentive CompensationPlan 163 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:10.32AmerenCompanies*AmerenSupplementalRetirementPlanamendedandrestatedeffectiveJanuary1,2008,datedJune13,2008June30,2008Form10-Q,Exhibit10.1, FileNo.1-1475610.33AmerenCompanies*FirstAmendmenttoamendedandrestatedAmerenSupplementalRetirementPlan, datedOctober24,20082008Form10-K,Exhibit10.44, FileNo.1-1475610.34AmerenAmerenIllinois*CILCOExecutiveDeferralPlanasamended effectiveAugust15,19991999Form10-K,Exhibit10, FileNo.1-273210.35AmerenAmerenIllinois*CILCOExecutiveDeferralPlanIIas amendedeffectiveApril1,19991999Form10-K,Exhibit10(a),
FileNo.1-273210.36AmerenAmerenIllinois*CILCORestructuredExecutiveDeferral Plan(approvedAugust15,1999)1999Form10-K,Exhibit10(e),
FileNo.1-273210.37AmerenNovationandAmendmentofPutOptionAgreement,datedMarch14,2013,byand amongMedinaValley,AERG,Gencoand
AmerenMarch19,2013Form8-K,Exhibit10.3, FileNo.1-1475610.38Ameren*EmploymentandChangeofControlAgreement,datedMarch13,2013,between StevenR.Sullivan,AERandAmerenMarch19,2013Form8-K,Exhibit10.4, FileNo.1-14756Statementre:ComputationofRatios 12.1 AmerenAmeren'sStatementofComputationof RatioofEarningstoFixedCharges 12.2AmerenMissouriAmerenMissouri'sStatementofComputationofRatioofEarningstoFixed ChargesandCombinedFixedChargesand PreferredStockDividendRequirements 12.3AmerenIllinoisAmerenIllinois'StatementofComputation ofRatioofEarningstoFixedChargesand CombinedFixedChargesandPreferred StockDividendRequirementsSubsidiariesoftheRegistrant 21.1AmerenCompaniesSubsidiariesofAmerenConsentofExpertsandCounsel 23.1 AmerenConsentofIndependentRegisteredPublic AccountingFirmwithrespecttoAmeren 23.2AmerenMissouriConsentofIndependentRegisteredPublicAccountingFirmwithrespecttoAmeren
Missouri 23.3AmerenIllinoisConsentofIndependentRegisteredPublic AccountingFirmwithrespecttoAmeren
IllinoisPowerofAttorney 24.1 AmerenPowersofAttorneywithrespecttoAmeren 24.2AmerenMissouriPowersofAttorneywithrespecttoAmeren Missouri 24.3AmerenIllinoisPowersofAttorneywithrespecttoAmeren
IllinoisRule13a-14(a)/15d-14(a)Certifications 31.1 AmerenRule13a-14(a)/15d-14(a)Certificationof PrincipalExecutiveOfficerofAmeren 31.2 AmerenRule13a-14(a)/15d-14(a)Certificationof PrincipalFinancialOfficerofAmeren 164 ExhibitDesignationRegistrant(s)NatureofExhibitPreviouslyFiledasExhibitto:
31.3AmerenMissouriRule13a-14(a)/15d-14(a)CertificationofPrincipalExecutiveOfficerofAmeren Missouri 31.4AmerenMissouriRule13a-14(a)/15d-14(a)CertificationofPrincipalFinancialOfficerofAmeren
Missouri 31.5AmerenIllinoisRule13a-14(a)/15d-14(a)Certificationof PrincipalExecutiveOfficerofAmeren
Illinois 31.6AmerenIllinoisRule13a-14(a)/15d-14(a)Certificationof PrincipalFinancialOfficerofAmerenIllinoisSection1350Certifications 32.1 AmerenSection1350CertificationofPrincipal ExecutiveOfficerandPrincipalFinancial OfficerofAmeren 32.2AmerenMissouriSection1350CertificationofPrincipalExecutiveOfficerandPrincipalFinancial OfficerofAmerenMissouri 32.3AmerenIllinoisSection1350CertificationofPrincipal ExecutiveOfficerandPrincipalFinancial OfficerofAmerenIllinoisAdditionalExhibits 99.1AmerenCompaniesAmendedandRestatedTaxAllocationAgreement,datedasofNovember21,20132013Form10-K,Exhibit99.1, FileNo.1-14756InteractiveDataFile101.INS**AmerenCompaniesXBRLInstanceDocument101.SCH**AmerenCompaniesXBRLTaxonomyExtensionSchema Document101.CAL**AmerenCompaniesXBRLTaxonomyExtensionCalculationLinkbaseDocument101.LAB**AmerenCompaniesXBRLTaxonomyExtensionLabelLinkbase Document101.PRE**AmerenCompaniesXBRLTaxonomyExtensionPresentationLinkbaseDocument101.DEF**AmerenCompaniesXBRLTaxonomyExtensionDefinition DocumentThefilenumberreferencesfortheAmerenCompanies'filingswiththeSECare:Ameren,1-14756;AmerenMissouri,1-2967;andAmerenIllinois,1-3672.*Compensatoryplanorarrangement.EachregistrantherebyundertakestofurnishtotheSECuponrequestacopyofanylong-termdebtinstrumentnotlistedabovethatsuchregistranthasnotfiledasanexhibitpursuanttotheexemptionprovidedbyItem601(b)(4)(iii)(A)ofRegulationS-K.
165 Exhibit31.1RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALEXECUTIVEOFFICEROFAMERENCORPORATION(requiredbySection302oftheSarbanes-OxleyActof2002)I,WarnerL.Baxter,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2014,ofAmerenCorporation; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March2,2015/s/WarnerL.BaxterWarnerL.BaxterChairman,PresidentandChiefExecutiveOfficer (PrincipalExecutiveOfficer)
Exhibit31.2RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALFINANCIALOFFICEROFAMERENCORPORATION(requiredbySection302oftheSarbanes-OxleyActof2002)I,MartinJ.Lyons,Jr.,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2014,ofAmerenCorporation; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March2,2015/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit31.3RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALEXECUTIVEOFFICEROFUNIONELECTRICCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,MichaelL.Moehn,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2014,ofUnionElectricCompany; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March2,2015/s/MichaelL.MoehnMichaelL.MoehnChairmanandPresident (PrincipalExecutiveOfficer)
Exhibit31.4RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALFINANCIALOFFICEROFUNIONELECTRICCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,MartinJ.Lyons,Jr.,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2014,ofUnionElectricCompany; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March2,2015/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit31.5RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALEXECUTIVEOFFICEROFAMERENILLINOISCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,RichardJ.Mark,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2014,ofAmerenIllinoisCompany; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March2,2015/s/RichardJ.MarkRichardJ.MarkChairmanandPresident (PrincipalExecutiveOfficer)
Exhibit31.6RULE13a-14(a)/15d-14(a)CERTIFICATIONOFPRINCIPALFINANCIALOFFICEROFAMERENILLINOISCOMPANY(requiredbySection302oftheSarbanes-OxleyActof2002)I,MartinJ.Lyons,Jr.,certifythat:1.IhavereviewedthisreportonForm10-KforthefiscalyearendedDecember31,2014,ofAmerenIllinoisCompany; 2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,the periodspresentedinthisreport;4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(as definedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringthe periodinwhichthisreportisbeingprepared;b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewith generallyacceptedaccountingprinciples;c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendof theperiodcoveredbythisreportbasedonsuchevaluation;andd)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecase ofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;andb)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.Date:March2,2015/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit32.1SECTION1350CERTIFICATIONOFAMERENCORPORATION(requiredbySection906oftheSarbanes-OxleyActof2002)InconnectionwiththereportonForm10-KforthefiscalyearendedDecember31,2014,ofAmerenCorporation(the"Registrant")asfiledbytheRegistrantwiththeSecuritiesandExchangeCommissiononthedatehereof(the"Form10-K"),eachundersignedofficeroftheRegistrantdoesherebycertify,pursuantto18U.S.C.§1350,asadoptedpursuantto§906of theSarbanes-OxleyActof2002,that:(1)TheForm10-KfullycomplieswiththerequirementsofSection13(a)or15(d)oftheSecuritiesExchangeActof1934(15U.S.C.78mor78o(d));and(2)TheinformationcontainedintheForm10-Kfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheRegistrant.Date:March2,2015/s/WarnerL.BaxterWarnerL.BaxterChairman,PresidentandChiefExecutiveOfficer (PrincipalExecutiveOfficer)/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit32.2SECTION1350CERTIFICATIONOFUNIONELECTRICCOMPANY(requiredbySection906oftheSarbanes-OxleyActof2002)InconnectionwiththereportonForm10-KforthefiscalyearendedDecember31,2014,ofUnionElectricCompany(the"Registrant")asfiledbytheRegistrantwiththeSecuritiesandExchangeCommissiononthedatehereof(the"Form10-K"),eachundersignedofficeroftheRegistrantdoesherebycertify,pursuantto18U.S.C.§1350,asadoptedpursuantto§906of theSarbanes-OxleyActof2002,that:(1)TheForm10-KfullycomplieswiththerequirementsofSection13(a)or15(d)oftheSecuritiesExchangeActof1934(15U.S.C.78mor78o(d));and(2)TheinformationcontainedintheForm10-Kfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheRegistrant.Date:March2,2015/s/MichaelL.MoehnMichaelL.MoehnChairmanandPresident (PrincipalExecutiveOfficer)/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
Exhibit32.3SECTION1350CERTIFICATIONOFAMERENILLINOISCOMPANY(requiredbySection906oftheSarbanes-OxleyActof2002)InconnectionwiththereportonForm10-KforthefiscalyearendedDecember31,2014,ofAmerenIllinoisCompany(the"Registrant")asfiledbytheRegistrantwiththeSecuritiesandExchangeCommissiononthedatehereof(the"Form10-K"),eachundersignedofficeroftheRegistrantdoesherebycertify,pursuantto18U.S.C.§1350,asadopted pursuantto§906oftheSarbanes-OxleyActof2002,that:(1)TheForm10-KfullycomplieswiththerequirementsofSection13(a)or15(d)oftheSecuritiesExchangeActof1934(15U.S.C.78mor78o(d));and(2)TheinformationcontainedintheForm10-Kfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheRegistrant.Date:March2,2015/s/RichardJ.MarkRichardJ.MarkChairmanandPresident (PrincipalExecutiveOfficer)/s/MartinJ.Lyons,Jr.MartinJ.Lyons,Jr.ExecutiveVicePresidentandChiefFinancialOfficer (PrincipalFinancialOfficer)
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COMMON STOCK AND DIVIDEND INFORMATIONAmeren's 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 Dec. 31, 1997. Ameren common shareholders of record totaled 54,755 on Jan. 31, 2015. The following table provides the price ranges, closing prices and dividends declared per Ameren common share for each quarter of 2014 and 2013.
ANNUAL MEETINGThe annual meeting of Ameren Corporation shareholders will convene at 10:30 a.m. (Central Time), Thursday, April 23, 2015, at the Saint Louis Art Museum, One Fine Arts Drive, Forest Park, 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, Ameren's dividend reinvestment and stock purchase plan.
Participants may:
ł Make cash investments by check or automatic direct debit from their bank accounts to purchase Ameren common stock, up to a maximum of
$360,000 annually;
ł Reinvest their dividends in Ameren common stock (the minimum dividend reinvestment requirement is 10% per share); and
ł Place Ameren common stock certificates in safekeeping and receive regular account statements.For more information about DRPlus, you may obtain a prospectus from Ameren's Investor Services representatives.
DIRECT DEPOSIT OF DIVIDENDSAll registered Ameren common and Ameren Illinois Company and Union Electric Company preferred shareholders may 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 (Ameren.com), the charters of the Board of Directors' Audit and Risk Committee, Finance Committee, Human Resources Committee, Nominating and Corporate Governance Committee and Nuclear Oversight and Environmental Committee. Also available on Ameren's 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 "Principles of Business Conduct") and 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 company's 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 ACCESSAmeren's website (Ameren.com) allows registered shareholders to access their account information online. Shareholders may securely change their reinvestment options, view account summaries, receive DRPlus statements and more through the website. This is a free service.
INVESTOR SERVICESAmeren's Investor Services representatives are available to help you each business day from 8 a.m. to 4 p.m. (Central Time). Please write or call:Ameren Services Company, Investor Services P.O. Box 66887 St. Louis, MO 63166-6887 314.554.3502 or 800.255.2237 invest@ameren.comTRANSFER AGENT, REGISTRAR AND PAYING AGENTThe Transfer Agent, Registrar and Paying Agent for Ameren common stock and Ameren Illinois Company and Union Electric Company preferred stock is Ameren Services Company.
INVESTOR INFORMATION Ameren Corporation One Ameren Plaza l 1901 Chouteau Avenue l St. Louis, MO 63103 l 314.621.3222 AEE 2014Quarter Ended March 31 June 30 Sept.30 Dec.31 High$42.24$41.92$40.96$48.14 Low$35.22$37.67$36.65$38.25 Close$41.20$40.88$38.33$46.13Dividends Declared40 ¢40 ¢40 ¢41 ¢AEE 2013Quarter Ended March 31 June 30 Sept.30 Dec.31 High$35.12$36.74$36.70$37.31 Low$30.64 $32.34 $32.61
$34.18 Close$35.02$34.44$34.84$36.16Dividends
Declared40 ¢40 ¢40 ¢40 ¢ P.O. Box 66149 l St. Louis, MO 63166-6149 AMEREN.COMAmeren's strategy is to invest in rate-regulated energy infrastructure which, when coupled with relentlessly improving operating performance and advocating for responsible energy policies, will deliver superior growth in shareholder and customer value.
AMEREN l 2014 Annual Report and Form 10-K