Ameren Corporation · NYSE:AEE
Ameren — Investor Presentation (July 2017)
22 slides from Ameren's investor presentation, Jul 11, 2017
Slide 1: Lead Today. Transform Tomorrow.
Lead Today. Transform Tomorrow. Canadian Investor Meetings July 11-12, 2017 | New York and Boston Investor Meetings | September 2016
Slide 2: Cautionary Statements
Cautionary Statements Forward-looking Statements Statements in this presentation not based on historical facts are considered "forward-looking" and, accordingly, involve risks and uncertainties that could cause actual results to differ materially from those discussed. Although such forward-looking s
Slide 3: Company Description
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: Regional Multi-Value Projects and 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 10: Investing Strategically, with Focus on Transmission and Distribution
Investing Strategically, with Focus on Transmission and Distribution 2016 to 2021E Regulated • Expect energy grid will be increasingly important and valuable to a Infrastructure Rate Base1 more sustainable future for our customers, the communities we serve and our shareholders 100% ─ Investing to mo
Slide 11: 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 12: Regulatory and Legislative Update
Regulatory and Legislative Update | Canadian Investor Meetings | July 11-12, 2017
Slide 13: Constructive Missouri Electric Rate Review
Constructive Missouri Electric Rate Review Unanimous Stipulation and Agreement approved by MoPSC March 8 • 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 annual
Slide 14: 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 15: Pending 2017 Illinois Electric Formula Rate Update
Pending 2017 Illinois Electric Formula Rate Update Illinois electric distribution service RATE UPDATE • $16 million net revenue requirement decrease filed in April 2017 with ICC in SCHEDULE: required annual formula rate update consisting of: Sep. 7-8, 2017 – $29 million increase to reflect 2016 reco
Slide 16: FERC MISO ROE Complaint Cases
FERC MISO ROE Complaint Cases Complaint cases to reduce allowed base ROE for Ameren Transmission Segment • In first case, FERC final order issued Sept. 28, 2016 confirmed ALJ initial recommendation of a 10.32% base ROE – Resulted in total current FERC-allowed ROE of 10.82%, including 50 basis point
Slide 17: 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 18: Appendix
Appendix | Canadian Investor Meetings | July 11-12, 2017
Slide 19: 2017 First Quarter Earnings Analysis
2017 First Quarter Earnings Analysis EPS Q1 2016 vs. Q1 2017 Key Earnings Variance Drivers: $0.43 $0.42 Higher Ameren Transmission earnings ─ Increased investments in infrastructure made under modern, constructive regulatory framework $0.11 $0.14 Higher Ameren Illinois Electric Distribution earnings
Slide 20: 2017 EPS Guidance and Select Balance of Year Considerations
2017 EPS Guidance and Select Balance of Year Considerations1 • Affirmed 2017 diluted EPS guidance range of $2.65 to $2.85 • Very mild winter temperatures vs. normal expected to be offset by early resolution of Missouri rate 2017E Diluted EPS review and continued disciplined cost management • Q2-Q4 2
Slide 21: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • 2016 electric rate review: Docket No. ER-2016-0179 • Order granting CCN for ATXI’s Mark Twain transmission project: Docket No. EA-2015-0146 • Missouri Court of Appeals Decision vacating Mark Twain CCN: https://www.courts.mo.gov/file.jsp?
Slide 22: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge MW – Megawatt ATXI – Ameren Transmission Company of Illinois New Madrid smelter – New Madrid, Missouri aluminum smelter (formerly owned by Noranda Aluminum, Inc.) B – Billion OPEB – Other Post-Employment Benefits CAGR – Compound annu