Ameren Corporation · NYSE:AEE
Ameren — Investor Presentation (June 2016)
22 slides from Ameren's investor presentation, Jun 21, 2016
Slide 1: Making an Impact
Making anImpact Minneapolis Investor Meetings June 21, 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 Fully rate-regulated electric and gas utility • 2.4 million electric and 0.9 million gas customers • 10,200 MW of regulated electric generation capability • 4,600 circuit miles of FERC-regulated electric transmission Ameren Corporation Ameren Missouri Ameren Illinois Electric Tra
Slide 4: Our Value Proposition to Investors
Our Value Proposition to Investors Strong long-term growth outlook • Expect ~6.5% compound annual rate base growth from 2015 through 20201 • Expect 5% to 8% compound annual EPS growth from 2016 through 20201 – Based on Feb. 2016 adjusted 2016 EPS guidance of $2.63, which was guidance mid- point of $
Slide 5: Solid Operating Performance
Solid Operating Performance # Delivery system reliability Generating plant Electric rates are low Safety has improved has improved performance remains strong Average Residential Electricity Prices1 Safety Performance 30 600 150 Lost Workday Recordable Cases 25 ¢/KWh BETTER 20 400 100 BETTER Cases 15
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 policies • Creating and capitalizing on opportunities for investment for the benefit of our customers and s
Slide 7: Our Regulatory Frameworks
Our Regulatory Frameworks FERC-regulated electric transmission service • Formula ratemaking; nearly eliminates regulatory lag – Allowed base ROE of 12.38% is being challenged; reserving for potential refund – Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation – C
Slide 8: Investing Strategically, Consistent with Regulatory Frameworks
Investing Strategically, Consistent with Regulatory Frameworks1 $11.1 Billion of Regulated Infrastructure 2015 to 2020E Regulated 5-Yr Rate Investment 2016-2020 Infrastructure Rate Base2 Base CAGR % of $16.7 Total ~6.5% Ameren $3.5 21% 20% Illinois % of Ameren Transmission $12.1 Total $2.0 B $2.0 12
Slide 9: FERC-Regulated Transmission Investment
FERC-Regulated Transmission Investment Planned $3.0 billion investment – 2016-20201 • $1.0 billion of regional multi-value projects at ATXI Regional • $2.0 billion of local reliability and connecting portions of regional Multi-Value Projects multi-value projects at Ameren Illinois Total Multi-Value
Slide 10: 2016-2020 Capital Expenditure Funding Plan
2016-2020 Capital Expenditure Funding Plan1 • Return of capital through depreciation in rates • Retained earnings • ~$2.5-$2.6 billion of income tax deferrals and assets – Income tax deferrals driven primarily by capital expenditures • ~$930 million due to extension of bonus tax depreciation – Inclu
Slide 11: Our Value Proposition to Investors
Our Value Proposition to Investors Strong long-term growth outlook • Expect ~6.5% compound annual rate base growth from 2015 through 20201 • Expect 5% to 8% compound annual EPS growth from 2016 through 20201 – Based on Feb. 2016 adjusted 2016 EPS guidance of $2.63, which was guidance mid- point of $
Slide 12: Financial and Regulatory Update
Financial and Regulatory Update
Slide 13: Earnings Summary
Earnings Summary Diluted EPS Key Earnings Variance Drivers: Q1 2015 vs. Q1 2016 Lower electric and natural gas sales volumes – Milder weather: ~$(0.10) vs. Q1 2015 and ~$(0.05) vs. normal – Net effect of reduced electric sales to Noranda: $(0.03) $0.45 Carryover effect of Missouri 2013-2015 ener
Slide 14: 2016 Earnings Guidance
2016 Earnings Guidance1 Select 2016 balance of year EPS considerations: 2016E Diluted EPS • Return to normal temperatures Q2-Q3 2016 ~flat; Q4 2016 ~+$0.08 $2.60 Q2-Q4 2016 compared to Q2-Q4 2015: $2.40 Increased electric transmission and delivery infrastructure investments by ATXI and Ameren Il
Slide 15: Select Pending Regulatory Matters
Select Pending Regulatory Matters Illinois Commerce Federal Energy Regulatory Commission Commission • Filed in April 2016 for required annual electric • Cases seek to reduce Ameren Illinois’ and ATXI’s delivery service formula rate update transmission service allowed base ROE of 12.38% – Filed for $
Slide 16: Noranda's Impact on Ameren Expected to be Temporary
Noranda’s Impact on Ameren Expected to be Temporary • Noranda Aluminum’s Background 2016 Expected – Ameren Missouri supplies electricity to Noranda’s aluminum smelter Diluted EPS – Ameren Missouri’s largest customer: ~4% of revenues and ~10% of MWh sales in 2015 Impact from – Noranda’s portion of Am
Slide 17: Appendix
Appendix
Slide 18: 2015 Ameren Illinois Regulatory and Legislative Outcomes
2015 Ameren Illinois Regulatory and Legislative Outcomes 2015 Rate Cases • Continue to Receive Constructive Rate Case Outcomes – ICC approved $106 million electric delivery formula rate increase, with new rates effective Jan. 2016 – ICC approved $45 million annual natural gas delivery rate increase
Slide 19: 2015 Ameren Missouri Electric Rate Case Order
2015 Ameren Missouri Electric Rate Case Order • MoPSC approved a $122 million annual rate increase effective May 30, 2015 – Net energy costs1: $109 million; Non-energy costs: $13 million – Rate base: $7.0 billion; Allowed ROE: 9.53%; Equity ratio: 51.8% – Test year ending March 31, 2014, with certai
Slide 20: Select Regulatory Matters
Select Regulatory Matters Illinois Commerce Commission • Recently filed electric delivery rate update: Docket No. 16-0262 • Website: http://www.icc.illinois.gov Missouri Public Service Commission • Order granting CCN for ATXI’s Mark Twain transmission project: Docket No. EA-2015-0146 • Working case
Slide 21: Investor Relations Calendar
Investor Relations Calendar JUNE 2016 JULY 2016 MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 1 2 4 5 6 7 8 9 10 3 4 5 6 7 8 9 11 12 13 14 15 16 17 10 11 12 13 14 15 16 Canada Canada Q2 Quiet Investor Investor Period Meetings Meetings 18 19 20 21 22 23 24 17 18 19 20 2
Slide 22: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ - Administrative Law Judge. GAAP - Generally Accepted Accounting Principles ATXI - Ameren Transmission Company of Illinois. ICC - Illinois Commerce Commission. B - Billion. MEEIA - Missouri Energy Efficiency Investment Act. CAGR - Compound annual growth rate.