Slide 1: Lead Today. Transform Tomorrow.
Lead Today. Transform Tomorrow. Late September Investor Meetings Week of Sept. 25, 2017
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented core earnings guidance, which is a non-GAAP measure and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP information is included on the slide where the non-GAAP
Slide 3: Company Description: Ameren Businesses
Company Description 2.4M electric Ameren Businesses customers Fully rate-regulated electric Ameren Missouri and gas utility • Electric generation, transmission and distribution business 0.9M gas and a natural gas distribution business in Missouri regulated Corporate Headquarters customers by MoPSC E
Slide 4: Our Value Proposition to Investors and Customers
Our Value Proposition to Investors and Customers Strong Attractive long-term growth Attractive total return outlook dividend potential • Expect 5% to 8% compound • Annualized equivalent dividend • Attractive earnings growth annual EPS growth from 2016 rate of $1.76 per share provides outlook and yie
Slide 5: Our Strategic Plan
Our Strategic Plan • Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Enhancing regulatory frameworks and advocating for responsible energy and economic policies • Creating and capitalizing on opportunities for investment for the benefit of our cu
Slide 6: Solid Operating Performance
Solid Operating Performance Electric rates Delivery system reliability Generating plant Strong safety performance are low has improved performance remains solid Average Residential Safety Distribution System Baseload Energy Electricity Prices1 Performance Reliability2 Center Performance Recordable L
Slide 7: Our Regulatory Frameworks
Our Regulatory Frameworks FERC-regulated: Formula ratemaking • Allowed ROE is 10.82%, which includes the MISO participation adder of 50 basis points Ameren • Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation Transmission • Constructive rate treatment for ATXI’s
Slide 8: Investing Strategically, Consistent with Regulatory Frameworks
Investing Strategically, Consistent with Regulatory Frameworks $10.8 Billion of Regulated 2016 to 2021E Regulated 5-Yr Rate Infrastructure Investment1,2 Infrastructure Rate Base1,3 Base CAGR 2017-2021 ($ Billions) Ameren Illinois Natural Gas +6% % of CAGR $17.9 Total 6% $1.4B, Ameren $3.8 Ameren Ill
Slide 9: 2017-2021 Capital Expenditure Funding Plan
2017-2021 Capital Expenditure Funding Plan1 • Cash from operations Ameren Credit Ratings2 ─ Return of capital through depreciation in rates Moody's S&P ─ Return on equity-financed portion of rate base ─ Income tax deferrals and tax assets of ~$1.9 - $2.0 billion Ameren Corporation • Income tax defer
Slide 10: Successfully Executing Our Strategic Plan in 2017
Successfully Executing Our Strategic Plan in 2017 EPS • Major projects proceeding as planned Six Months Ended June 30 ─ Mark Twain transmission project received all 5 county assents; filed request for CCN with MoPSC $1.21 ─ Contributing to solid operational performance ─ Delivering benefits to custo
Slide 11: Missouri 20-year Integrated Resource Plan Filed with MoPSC
Missouri 20-year Integrated Resource Plan Filed with MoPSC • Transitioning generation to a cleaner, more diverse portfolio in a responsible fashion • Adding at least 700 MWs of wind generation by 2020, which represents investment of ~$1 billion1 ─ Believe Ameren Missouri ownership is in customers’ l
Slide 12: Summary
Summary Expect to deliver 2017 core earnings within a range of $2.70 to $2.90 per diluted share1 Successfully executing our strategy Strong long-term growth outlook • Expect 5% to 8% compound annual EPS growth from 2016 through 20202,3 • Expect 6% compound annual rate base growth from 2016 through 2
Slide 13: Appendix
\V Appendix
Slide 14: 2017 Earnings Analysis for Six Months Ended June 30
2017 Earnings Analysis for Six Months Ended June 30 EPS Six Months Ended June 30 Key Earnings Variance Drivers: $1.21 Higher Ameren Illinois Electric Distribution earnings ─ 2017 change in timing of interim period revenue recognition reflecting Future Energy $1.04 Jobs Act, which decoupled revenues
Slide 15: 2017 EPS Guidance and Select Balance of Year Considerations
2017 EPS Guidance and Select Balance of Year Considerations1 • 2017 GAAP diluted EPS guidance range reaffirmed at $2.65 to $2.85 – Includes expected Q3 non-core, non-cash charge, primarily at Ameren Parent, for revaluation of deferred taxes resulting from increase in Illinois income tax rate effecti
Slide 16: Regional Multi-Value Projects Significant FERC-Regulated Transmission Investment
Regional Multi-Value Significant FERC-Regulated Projects Transmission Investment • Planned $2.8 billion investment – 2017-20211 ─ $0.6 billion of regional multi-value projects at ATXI ─ $2.2 billion of local reliability and connecting portions of regional multi-value projects at Ameren Illinois • To
Slide 17: Pending FERC ROE Case
Pending FERC ROE Case Ameren Transmission service • Pending complaint case to reduce MISO’s FERC-allowed base ROE – ALJ initial decision issued June 30, 2016 recommended a 9.70% base ROE • If approved by FERC, would result in total allowed ROE of 10.20% vs. current 10.82%, both include 50 basis poin
Slide 18: Constructive Illinois Legislation
Constructive Illinois Legislation • Future Energy Jobs Act enacted in Dec. 2016; effective June 2017 • Enhances and extends Ameren Illinois’ Electric Distribution regulatory framework ─ Extends constructive formula ratemaking through 2022 • Enables continuation of Ameren Illinois’ strong rate base g
Slide 19: Illinois Electric and Gas Service Rate Updates
Illinois Electric and Gas Service Rate Updates Illinois electric distribution service Electric Rate Update • $17 million net revenue requirement decrease filed with ICC in annual formula rate update Schedule: consisting of: Nov. 6, 2017 (tentative) – $29 million increase to reflect 2016 recoverable
Slide 20: Constructive Missouri Electric Rate Review
Constructive Missouri Electric Rate Review Unanimous Stipulation and Agreement approved by MoPSC • Increases annual base electric revenue requirement by $92 million ─ Removes negative effect of lower sales to New Madrid smelter • Decreases base level of net energy costs by $54 million annually, excl
Slide 21: Missouri Legislative Update
Missouri Legislative Update • Missouri General Assembly did not pass legislation this year that would have improved the electric utility regulatory framework; however, made progress including: ─ Constructive report from MoPSC in working case on utility regulation ─ Constructive report from Senate In
Slide 22: Potential Federal Income Tax Reform
Potential Federal Income Tax Reform • Ameren supports thoughtful, comprehensive tax reform that would drive economic growth, job creation and benefit our customers, communities and other key stakeholders by: ─ Lowering the corporate tax rate ─ Maintaining interest deductibility ─ Preserving state an
Slide 23: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • Working proceeding regarding emerging issues: Docket No. EW-2017-0245 • Website: https://www.efis.psc.mo.gov/mpsc/DocketSheet.html Illinois Commerce Commission • Pending electric distribution rate update: Docket No. 17-0197 • Proceeding
Slide 24: Investor Relations Calendar
Investor Relations Calendar SEPTEMBER 2017 OCTOBER 2017 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 1 2 3 4 5 6 7 3 4 5 6 7 8 9 8 9 10 11 12 13 14 Barclays Q3 Quiet Conf. Period 10 11 12 13 14 15 16 15 16 17 18 19 20 21 17 18 19 20 21 22 23 22 23 24 25 26 27 28 Bost
Slide 25: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge MISO – Midcontinent Independent System Operator, Inc. ATXI – Ameren Transmission Company of Illinois MoPSC – Missouri Public Service Commission B – Billion MW – Megawatt CAGR – Compound annual growth rate OPEB – Other Post-Employment