Ameren Corporation · NYSE:AEE
Ameren — EEI Financial Conference 2018
26 slides from Ameren's conference presentation, Nov 9, 2018
Slide 1: Purpose-Driven Performance
Purpose-Driven Performance EEI Financial Conference Nov. 12-13, 2018
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented core earnings per share and core earnings per share guidance, which are non-GAAP measures and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP information is inc
Slide 3: Company Description
Company Description 2.4M electric Ameren Businesses customers Fully rate-regulated electric Ameren Missouri and natural gas utility • Electric generation, transmission and distribution business 0.9M gas and a natural gas distribution business in Missouri regulated Corporate Headquarters customers by
Slide 4: 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 5: Our Value Proposition to Investors and Customers
Our Value Proposition to Investors and Customers Strong long-term Attractive Attractive total return growth outlook dividend potential • Expect 5% to 7% compound annual EPS growth • Annualized equivalent dividend rate of $1.90 • Track record of delivering strong results from 2017 through 20221,2 per
Slide 6: Our Strategic Plan
Our Strategic Plan • Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Enhancing regulatory frameworks and advocating for responsible energy and economic policies • Creating and capitalizing on opportunities for investment for the benefit of our cu
Slide 7: Constructive Regulatory Frameworks
Constructive Regulatory Frameworks FERC-regulated: Formula ratemaking • Allowed ROE is 10.82%, which includes the MISO participation adder of 50 basis points Ameren • Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation Transmission • Constructive rate treatment fo
Slide 8: Executing Our Strategy: Rate Base Growth Plan 2017-2022
Executing Our Strategy Rate Base Growth Plan 2017-20221 Investing in and operating our utilities in a manner Regulated Five-Year Rate consistent with existing regulatory frameworks Infrastructure Rate Base2 Base CAGR • Expect strong ~7% compound annual rate base growth from 2017 ($ Billions) through
Slide 9: Executing Our Strategy – Missouri Legislation Enacted
Executing Our Strategy – Missouri Legislation Enacted Enhancing regulatory frameworks and advocating for responsible energy and economic policies • Ameren Missouri elected to use PISA under SB 564 effective Sept. 1 • SB 564 significantly enhances Missouri electric regulatory framework to support inv
Slide 10: Executing Our Strategy – Proposed Wind Investment
Executing Our Strategy – Proposed Wind Investment Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders • Ameren Missouri pursuing ownership of at least 700 MWs of wind generation with multiple developers, ~$1 billion investment; filed CCN reques
Slide 11: Executing Our Strategy – Investing in the Energy Grid
Executing Our Strategy – Investing in the Energy Grid Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders • Expect the energy grid will be increasingly more important and valuable to our customers, the communities we serve and our shareholders
Slide 12: Capital Investment Plan and Expected Funding Plan 2018-2022
Capital Investment Plan 2018-2022 Expected Funding Plan 2018-20221 Excludes Ameren Missouri’s potential incremental grid modernization and proposed wind generation investments • Cash flows from operations ~$11 Billion of Regulated ─ Return on equity-financed portion of rate base Infrastructure Inves
Slide 13: Summary
Summary Expect to deliver strong earnings growth in 2018 with core guidance in a range of $3.35 to $3.45 per diluted share1,2 Successfully executing our strategy Strong long-term growth outlook • Expect 5% to 7% compound annual EPS growth from 2017 through 2022 3,4 • Expect ~7% compound annual rate
Slide 14: Financial and Regulatory Update
Financial and Regulatory Update
Slide 15: 2018 Earnings Analysis for Nine Months Ended Sept. 30
2018 Earnings Analysis for Nine Months Ended Core Diluted EPS2 Sept. 30 1 Nine Months Ended Sept. 30 Key Earnings Variance Drivers: Higher Ameren Missouri earnings $3.09 ─ Higher electric retail sales primarily due to colder winter and warmer summer temperatures: ~+$0.39 $0.50 • Temperatures vs. pri
Slide 16: 2018 EPS Guidance and Select Balance of Year Considerations
2018 EPS Guidance and Select Balance of Year Considerations • 2018 GAAP diluted EPS guidance range raised to $3.30 to $3.40 from $3.15 to $3.351 – Includes Q3 non-core, non-cash charge for a true-up to the revaluation of deferred taxes associated with 2018E Core federal income tax reform resulting p
Slide 17: Select Regulatory Matters – Ameren Transmission
Select Regulatory Matters – Ameren Transmission Base Allowed ROE • Second complaint case to reduce MISO’s FERC-allowed base ROE pending ─ In June 2016, ALJ 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 point
Slide 18: Select Regulatory Matters – Ameren Illinois
Select Regulatory Matters – Ameren Illinois Electric Distribution • In Nov. 2018, the ICC approved a $72 million net annual increase in electric formula rates effective Jan. 2019, consistent with Ameren Illinois’ request ─ All-in 2019 residential electric rates, for customers taking delivery and ene
Slide 19: Appendix
Appendix
Slide 20: GAAP to Core Earnings Reconciliation
GAAP to Core Earnings Reconciliation Three Months Ended Sept. 30, Nine Months Ended Sept. 30, (in millions, except per share amounts) 2017 2018 2017 2018 GAAP Earnings / Diluted EPS $ 288 $ 1.18 $ 357 $ 1.45 $ 583 $ 2.39 $ 747 $ 3.04 Charge for revaluation of deferred taxes resulting from 22 0.09 —
Slide 21: Long-Term Debt Financings and Maturities; Credit Ratings
Long-Term Debt Financings and Ameren Credit Ratings and Maturities External Debt Balances1 2018 As of Sept. 30, 2018 $ in • On Apr. 6, Ameren Missouri issued $425 million of 4.00% first Moody's S&P millions mortgage bonds due 2048 Ameren Corporation (Issuer: Baa1/BBB+) – Proceeds used to repay short
Slide 22: Missouri 20-year Integrated Resource Plan
Missouri 20-year Integrated Resource Plan • Transitioning generation to a cleaner, more diverse portfolio in a responsible fashion ─ Preferred plan includes addition of at least 700 MWs of wind generation by 2020, representing potential ~$1 billion wind investment1 ─ Preferred plan also includes add
Slide 23: PISA under Senate Bill 564
PISA under Senate Bill 564 Ameren Missouri • Use of PISA under Senate Bill 564 effective Sept. 1 ─ Allows for deferral and recovery of 85% of depreciation expense and return on rate base related to plant1 placed-in-service between regulatory rate reviews • Monthly depreciation expense deferral calcu
Slide 24: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • Senate Bill 564: http://www.senate.mo.gov/18info/pdf-bill/perf/SB564.pdf • Order passing savings from federal income tax reform to customers: Docket No. ER-2018-0362 • Order approving Renewable Choice Program agreement: Docket No. ET-201
Slide 25: Investor Relations Calendar
Investor Relations Calendar NOVEMBER 2018 SUN. MON. TUES. WED. THUR. FRI. SAT. Nov. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 EEI Conf. EEI Conf. 18 19 20 21 22 23 24 25 26 27 28 29 30 Nov. 12-13 EEI Conference in San Francisco 25 | EEI Financial Conference | Nov. 12-13, 2018
Slide 26: 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 BPS – Basis points QIP – Qualifying Infrastructure Plant CAGR –